2025Semi-annual Financial Report.
Shenzhen Textile (Holdings) Co. Ltd
2025 Semi-annual Financial Report
August 2025
12025Semi-annual Financial Report.
I. Audit report
Whether the semi-annual report has been audited
□Yes□No
The Company's semi-annual financial report has not been audited.II. Financial statements
The unit in the notes to the financial statements is: RMB
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co. Ltd.June 30 2025
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary funds 583308982.61 340961443.82
Financial assets held for trading 714772329.76 731419904.42
Notes receivable 20078297.52 47305221.88
Accounts receivable 814121353.42 863731936.89
Receivables financing 8286636.78 6804603.68
Advances to suppliers 22845276.38 8176724.70
Other receivables 3133087.51 3596543.96
Including: interest receivable 0.00 0.00
Dividends receivable 0.00 0.00
Inventories 810014233.21 789756700.88
Including: data resources 0.00 0.00
Other current assets 33224139.84 21461736.14
Total current assets 3009784337.03 2813214816.37
Non-current assets:
Long-term equity investments 110948976.97 114828026.04
Other equity instrument investments 165402900.00 165402900.00
Investment properties 110513722.85 115993390.19
Fixed assets 1761352875.57 1873552843.91
Construction in progress 5589741.14 5814012.03
Right-of-use assets 17733269.31 15338117.86
Intangible assets 33255872.13 35207791.95
Goodwill 0.00 0.00
Long-term deferred expenses 6244717.57 6084115.87
Deferred tax assets 57045245.89 58920511.20
Other non-current assets 27878799.85 27793871.91
Total non-current assets 2295966121.28 2418935580.96
Total assets 5305750458.31 5232150397.33
22025Semi-annual Financial Report.
Current liabilities:
Derivative financial liabilities 495496.93 1278559.35
Notes payable 33929917.81 31095540.29
Accounts payable 405630895.77 304812580.55
Advances from customers 636186.67 1051491.96
Contract liabilities 2417170.20 490562.97
Employee compensation payable 52499656.11 56685289.92
Taxes payable 10126058.86 6853730.84
Other payables 162765912.58 160296989.98
Including: interest payable 0.00 0.00
Dividends payable 0.00 0.00
Non-current liabilities maturing within
49362042.5863347555.03
one year
Other current liabilities 43856759.56 54072022.27
Total current liabilities 761720097.07 679984323.16
Non-current liabilities:
Long-term borrowings 146994855.00 162388870.00
Lease liabilities 10337042.95 9496564.12
Deferred income 91526423.03 96349196.26
Deferred tax liabilities 48286013.64 48610809.66
Total non-current liabilities 297144334.62 316845440.04
Total liabilities 1058864431.69 996829763.20
Owners' equity:
Equity 506521849.00 506521849.00
Capital reserve 1961599824.63 1961599824.63
Other comprehensive income 106877807.32 106877807.32
Surplus reserves 104262315.64 104262315.64
Undistributed profits 271879850.09 272608113.66
Total equity attributable to owners of the
2951141646.682951869910.25
parent company
Minority interests 1295744379.94 1283450723.88
Total owners' equity 4246886026.62 4235320634.13
Total liabilities and owners' equity 5305750458.31 5232150397.33
Legal representative: YIN Kefei Principal Chief Finance Officer: LIU Yu Chief Accountant: HUANG Min
2. Balance sheet of the parent company
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary funds 22409020.11 13630974.26
Financial assets held for trading 714772329.76 731419904.42
Accounts receivable 14727202.78 13028987.63
Advances to suppliers 96500.00 99904.79
Other receivables 1053257.66 1534395.80
Including: interest receivable 0.00 0.00
32025Semi-annual Financial Report.
Dividends receivable 0.00 0.00
Inventories 53268.05 39835.05
Total current assets 753111578.36 759754001.95
Non-current assets:
Long-term equity investments 2036810957.64 2040690006.71
Other equity instrument investments 152221200.00 152221200.00
Investment properties 90270093.42 94773462.23
Fixed assets 1862225.04 2099585.67
Intangible assets 58614.51 83350.98
Long-term deferred expenses 4810530.71 4448190.05
Other non-current assets 25760086.27 25860862.33
Total non-current assets 2311793707.59 2320176657.97
Total assets 3064905285.95 3079930659.92
Current liabilities:
Accounts payable 411743.57 411743.57
Advances from customers 540673.07 540673.07
Employee compensation payable 16012998.77 17955509.70
Taxes payable 5537698.39 5619509.34
Other payables 93320607.95 87029351.12
Including: interest payable 0.00 0.00
Dividends payable 0.00 0.00
Total current liabilities 115823721.75 111556786.80
Non-current liabilities:
Deferred income 50000.00 100000.00
Deferred tax liabilities 33761011.78 34086313.51
Total non-current liabilities 33811011.78 34186313.51
Total liabilities 149634733.53 145743100.31
Owners' equity:
Equity 506521849.00 506521849.00
Capital reserve 1577392975.96 1577392975.96
Other comprehensive income 98116532.32 98116532.32
Surplus reserves 104262315.64 104262315.64
Undistributed profits 628976879.50 647893886.69
Total owners' equity 2915270552.42 2934187559.61
Total liabilities and owners' equity 3064905285.95 3079930659.92
3. Consolidated income statement
Unit: RMB
Item Half year period of 2025 Half year period of 2024
I. Total operating revenue 1600481626.31 1623384151.90
Including: operating revenue 1600481626.31 1623384151.90
II. Total operating costs 1519243714.80 1509523068.26
Including: operating costs 1362512734.09 1389606053.06
Taxes and surcharges 5659061.80 4614482.79
42025Semi-annual Financial Report.
Selling and distribution expenses 16031119.28 18259030.20
G&A expenses 59632564.54 59979111.15
R&D expenses 52739746.19 47870863.46
Financial expenses 22668488.90 -10806472.40
Including: interest expenses 3666950.38 11411878.99
Interest income 2493076.60 4864600.64
Plus: other income 18162062.42 18891082.37
Investment income ("-" for losses) 130107.09 3206756.62
Including: investment income from associates and
-3645599.07-4247734.12
joint ventures
Gains from derecognition of financial assets
0.000.00
measured at amortized costs
Gains from changes in fair value ("-" for losses) 5911007.63 1283637.11
Credit impairment losses ("-" for losses) 815027.65 -8275241.40
Assets impairment losses ("-" for loss) -55273530.83 -48933632.55
Gains from disposal of assets ("-" for losses) 1163586.44 0.00
III. Operating profit ("-" for losses) 52146171.91 80033685.79
Plus: non-operating revenue 3104116.81 162935.79
Less: non-operating expenses 57900.79 2311469.51
IV. Total profits ("-" for total loss) 55192387.93 77885152.07
Less: income tax expenses 7663966.35 11082190.34
V. Net profit ("-" for net losses) 47528421.58 66802961.73
(I) Classified by operating sustainability
1. Net profit from continued operation ("-" for net losses) 47528421.58 66802961.73
2. Net profit from discontinued operations ("-" for net
0.000.00
losses)
(II) Classified by ownership
1. Net profit attributable to shareholders of the parent
35234765.5243894075.23
company ("-" for net losses)
2. Minority interest income ("-" for net losses) 12293656.06 22908886.50
VI. Other comprehensive income net of tax 0.00 -115825.06
Other comprehensive income net of tax attributable to
0.00-115825.06
owners of parent company
(I) Other comprehensive income that cannot be reclassified
0.000.00
into profit or loss later
1. Changes in re-measurement of defined benefit plans 0.00 0.00
2. Other comprehensive income that cannot be
0.000.00
transferred to profit or loss under the equity method
3. Changes in fair value of other equity instrument
0.000.00
investments
4. Changes in fair value of the enterprise's own credit
0.000.00
risk
5. Others 0.00 0.00
(II) Other comprehensive income that will be reclassified
0.00-115825.06
into profit or loss
1. Other comprehensive income that can be transferred to 0.00 0.00
profit or loss under the equity method
2. Changes in fair value of other debt investments 0.00 0.00
3. Amount of financial assets reclassified and included in 0.00 0.00
other comprehensive income
52025Semi-annual Financial Report.
4. Provision for credit impairment of other debt 0.00 0.00
investments
5. Reserve for cash flows 0.00 0.00
6. Differences arising from translation of foreign-
0.00-115825.06
currency financial statements
7. Others 0.00 0.00
Net of tax of other comprehensive income attributable to 0.00 0.00
minority shareholders
VII. Total comprehensive income 47528421.58 66687136.67
Total comprehensive income attributable to the owner of the
35234765.5243778250.17
parent company
Total comprehensive income attributable to minority
12293656.0622908886.50
shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.0696 0.0867
(II) Diluted earnings per share 0.0696 0.0867
In case of any business combination under the same control in the current period the net profit realized by the combinee before the
combination was RMB0.00 and the net profit realized by the combinee in the previous period was RMB 0.00.Legal representative: YIN Kefei Principal Chief Finance Officer: LIU Yu Chief Accountant: HUANG Min
4. Income statement of the parent company
Unit: RMB
Item Half year period of 2025 Half year period of 2024
I. Operating revenue 38597362.56 37598506.94
Less: operating costs 5734623.16 4849806.55
Taxes and surcharges 1514685.13 1557197.01
Selling and distribution expenses 9356.70 28576.00
G&A expenses 18677086.91 18630597.44
Financial expenses -257485.04 -1041915.34
Including: interest expenses 2831.38 5709.68
Interest income 290763.85 1142495.37
Plus: other income 100758.85 114150.75
Investment income ("-" for losses) 4647607.09 4103395.00
Including: investment income from associates
-3645599.07-4247734.12
and joint ventures
Gains from derecognition of financial 0.00 0.00
assets measured by amortized costs ("-" for losses)
Gains from changes in fair value ("-" for losses) 5127945.21 257446.36
Credit impairment losses ("-" for losses) -123846.10 -11329.80
Assets impairment losses ("-" for loss) 0.00 0.00
Gains from disposal of assets ("-" for losses) 0.00 0.00
II. Operating profit ("-" for losses) 22671560.75 18037907.59
Plus: non-operating revenue 0.05 0.00
Less: non-operating expenses 27285.06 18097.45
III. Total profit ("-" for total loss) 22644275.74 18019810.14
Less: income tax expenses 5598253.84 4285037.46
IV. Net profit ("-" for net losses) 17046021.90 13734772.68
62025Semi-annual Financial Report.
(I) Net profit from continued operation ("-" for net
17046021.9013734772.68
losses)
(II) Net profit from discontinued operation ("-" for net 0.00 0.00
losses)
V. Net of tax of other comprehensive income 0.00 -115825.06
(I) Other comprehensive income that cannot be 0.00 0.00
reclassified into profit or loss later
1. Changes in re-measurement of defined benefit 0.00 0.00
plans
2. Other comprehensive income that cannot be 0.00 0.00
transferred to profit or loss under the equity method
3. Changes in fair value of other equity instrument
0.000.00
investments
4. Changes in fair value of the enterprise's own
0.000.00
credit risk
5. Others 0.00 0.00
(II) Other comprehensive income that will be
0.00-115825.06
reclassified into profit or loss
1. Other comprehensive income that can be 0.00 0.00
transferred to profit or loss under the equity method
2. Changes in fair value of other debt investments 0.00 0.00
3. Amount of financial assets reclassified and 0.00 0.00
included in other comprehensive income
4. Provision for credit impairment of other debt 0.00 0.00
investments
5. Reserve for cash flows 0.00 0.00
6. Differences arising from translation of foreign-
0.00-115825.06
currency financial statements
7. Others 0.00 0.00
VI. Total comprehensive income 17046021.90 13618947.62
5. Consolidated statement of cash flows
Unit: RMB
Item Half year period of 2025 Half year period of 2024
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of
1671434675.351485990801.73
services
Refunds of taxes and surcharges received 0.00 6793213.50
Other cash received related to operating activities 68058342.69 56983404.25
Sub-total of cash inflows from operating activities 1739493018.04 1549767419.48
Cash paid for purchase of goods and receipt of services 1218647653.85 1347905854.18
Cash paid to and on behalf of employees 127820808.26 124223211.21
Cash paid for taxes and surcharges 27343241.72 15045793.07
Other cash paid related to operating activities 40346993.22 50757711.08
Sub-total of cash outflows from operating activities 1414158697.05 1537932569.54
Net cash flows from operating activities 325334320.99 11834849.94
II. Cash flows from investing activities:
Cash received from recovery of investment 0.00 0.00
Cash received from investment income 8334676.03 7303767.71
Net cash received from disposal of fixed assets
3431771.500.00
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries and other 0.00 0.00
business units
Other cash received related to investing activities 518000000.00 965100513.30
72025Semi-annual Financial Report.
Sub-total of cash inflows from investing activities 529766447.53 972404281.01
Cash paid to acquire and construct fixed assets
6414300.566988462.82
intangible assets and other long-term assets
Cash paid for investments 0.00 0.00
Net cash paid to acquire subsidiaries and other business 0.00 0.00
units
Other cash paid related to investing activities 500000000.00 1099000000.00
Sub-total of cash outflows from investing activities 506414300.56 1105988462.82
Net cash flows from the investing activities 23352146.97 -133584181.81
III. Cash flows from financing activities:
Cash received from absorption of investments 0.00 0.00
Including: cash received by subsidiaries from absorption 0.00 0.00
of investments of minority shareholders
Cash received from acquisition of borrowings 0.00 257600.00
Other cash received related to financing activities 0.00 0.00
Sub-total of cash inflows from financing activities 0.00 257600.00
Cash paid for debt repayments 20736765.00 58921670.00
Cash paid for distribution of dividends and profits or
39283617.0244157958.67
payment of interests
Including: dividends and profit paid to minority 0.00 0.00
shareholders by subsidiaries
Other cash paid related to financing activities 6983290.34 6463136.37
Sub-total of cash outflows from financing activities 67003672.36 109542765.04
Net cash flows from financing activities -67003672.36 -109285165.04
IV. Effect of fluctuation in exchange rate on cash and cash
-6543513.79-6440394.95
equivalents
V. Net increase in cash equivalents 275139281.81 -237474891.86
Plus: beginning balance of cash equivalents 302084839.35 461420457.33
VI. Ending balance of cash equivalents 577224121.16 223945565.47
6. The statement of cash flows of the parent company
Unit: RMB
Half year period of
Item Half year period of 2024
2025
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 40571767.79 40534005.59
Refunds of taxes and surcharges received 0.00 67999.80
Other cash received related to operating activities 2078250.77 4967943.81
Sub-total of cash inflows from operating activities 42650018.56 45569949.20
Cash paid for purchase of goods and receipt of services 1904909.90 1110239.45
Cash paid to and on behalf of employees 19685814.75 19875978.31
Cash paid for taxes and surcharges 9256504.29 8337487.47
Other cash paid related to operating activities 3271796.24 18437225.42
Sub-total of cash outflows from operating activities 34119025.18 47760930.65
Net cash flows from operating activities 8530993.38 -2190981.45
II. Cash flows from investing activities:
Cash received from recovery of investment 0.00 0.00
Cash received from investment income 9852176.03 9003767.71
Net cash received from disposal of fixed assets intangible assets
0.000.00
and other long-term assets
Net cash received from disposal of subsidiaries and other
0.000.00
business units
Other cash received related to investing activities 527000000.00 885100513.30
Sub-total of cash inflows from investing activities 536852176.03 894104281.01
82025Semi-annual Financial Report.
Cash paid to acquire and construct fixed assets intangible assets
640844.321288821.77
and other long-term assets
Cash paid for investments 0.00 0.00
Net cash paid to acquire subsidiaries and other business units 0.00 0.00
Other cash paid related to investing activities 500000000.00 850000000.00
Sub-total of cash outflows from investing activities 500640844.32 851288821.77
Net cash flows from the investing activities 36211331.71 42815459.24
III. Cash flows from financing activities:
Cash received from absorption of investments 0.00 0.00
Cash received from acquisition of borrowings 0.00 257600.00
Other cash received related to financing activities 0.00 1585151.73
Sub-total of cash inflows from financing activities 0.00 1842751.73
Cash paid for debt repayments 0.00 0.00
Cash paid for distribution of dividends and profits or payment of
35963029.0932923916.72
interests
Other cash paid related to financing activities 0.00 0.00
Sub-total of cash outflows from financing activities 35963029.09 32923916.72
Net cash flows from financing activities -35963029.09 -31081164.99
IV. Effect of fluctuation in exchange rate on cash and cash
-1250.15364.54
equivalents
V. Net increase in cash equivalents 8778045.85 9543677.34
Plus: beginning balance of cash equivalents 13630974.26 9125800.27
VI. Ending balance of cash equivalents 22409020.11 18669477.61
9Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
7. Consolidated statements of changes in owners' equity
The current period
Unit: RMB
Half year period of 2025
Equity attributable to owners of the parent company
Item Other
Undistributed Minority interests
Total shareholders'
Equity Capital reserve comprehensive Surplus reserves Sub-total equity
profits
income
I. Ending balance last year 506521849.00 1961599824.63 106877807.32 104262315.64 272608113.66 2951869910.25 1283450723.88 4235320634.13
Plus: changes in
0.000.000.000.000.000.000.000.00
accounting policies
Correction of prior
0.000.000.000.000.000.000.000.00
period errors
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Beginning balance as at
506521849.001961599824.63106877807.32104262315.64272608113.662951869910.251283450723.884235320634.13
the beginning of this year
III. Increase/decrease in the
0.000.000.000.00-728263.57-728263.5712293656.0611565392.49
current period
(I) Total comprehensive
0.000.000.000.0035234765.5235234765.5212293656.0647528421.58
income
(II) Capital contributed or
0.000.000.000.000.000.000.000.00
reduced by owners
(III) Profit distribution 0.00 0.00 0.00 0.00 -35963029.09 -35963029.09 0.00 -35963029.09
1. Withdrawal of surplus
0.000.000.000.000.000.000.000.00
reserves
2. Withdrawal of general
0.000.000.000.000.000.000.000.00
risk reserves
3. Profits distributed to
0.000.000.000.00-35963029.09-35963029.090.00-35963029.09
shareholders
4. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Internal transfer of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
shareholders' equity
1. Conversion of capital
0.000.000.000.000.000.000.000.00
reserve into share capital
2. Conversion of surplus
0.000.000.000.000.000.000.000.00
reserve into share capital
3. Surplus reserves offsetting
0.000.000.000.000.000.000.000.00
losses
4. Changes in benefit plans
transferred to retained 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
earnings
5. Transfer of other
comprehensive income into 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
retained earnings
6. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Withdrawal in the current
0.000.000.000.000.000.000.000.00
period
2. Amount used in the
0.000.000.000.000.000.000.000.00
current period
(VI) Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance as at the end of
506521849.001961599824.63106877807.32104262315.64271879850.092951141646.681295744379.944246886026.62
the current period
Amount for the previous year
Unit: RMB
Half year period of 2024
Equity attributable to owners of the parent company
Item Other Total shareholders'
Undistributed Minority interests
Equity Capital reserve comprehensive Surplus reserves Sub-total equity
profits
income
I. Ending balance last year 506521849.00 1961599824.63 93607380.81 104262315.64 216160896.14 2882152266.22 1229765091.74 4111917357.96
Plus: changes in
0.000.000.000.000.000.000.000.00
accounting policies
11Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Correction of prior
0.000.000.000.000.000.000.000.00
period errors
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Beginning balance as at
506521849.001961599824.6393607380.81104262315.64216160896.142882152266.221229765091.744111917357.96
the beginning of this year
III. Increase/decrease in the
current period ("-" for 0.00 0.00 -115825.06 0.00 10970158.51 10854333.45 22908886.50 33763219.95
decrease)
(I) Total comprehensive
0.000.00-115825.060.0043894075.2343778250.1722908886.5066687136.67
income
(II) Capital contributed or
0.000.000.000.000.000.000.000.00
reduced by owners
(III) Profit distribution 0.00 0.00 0.00 0.00 -32923916.72 -32923916.72 0.00 -32923916.72
1. Withdrawal of surplus
0.000.000.000.000.000.000.000.00
reserves
2. Withdrawal of general
0.000.000.000.000.000.000.000.00
risk reserves
3. Profit distributed to
0.000.000.000.00-32923916.72-32923916.720.00-32923916.72
owners (or shareholders)
4. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Internal transfer of
0.000.000.000.000.000.000.000.00
shareholders' equity
1. Conversion of capital
0.000.000.000.000.000.000.000.00
reserve into share capital
2. Conversion of surplus
0.000.000.000.000.000.000.000.00
reserve into share capital
3. Surplus reserves offsetting
0.000.000.000.000.000.000.000.00
losses
4. Changes in benefit plans
transferred to retained 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
earnings
5. Transfer of other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
comprehensive income into
12Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
retained earnings
6. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Withdrawal in the current
0.000.000.000.000.000.000.000.00
period
2. Amount used in the
0.000.000.000.000.000.000.000.00
current period
(VI) Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance as at the end of
506521849.001961599824.6393491555.75104262315.64227131054.652893006599.671252673978.244145680577.91
the current period
8. Statement of changes in owner's equity of parent company
The current period
Unit: RMB
Half year period of 2025
Item Other comprehensive
Equity Capital reserve Surplus reserves Undistributed profits Total owners' equity
income
I. Ending balance last year 506521849.00 1577392975.96 98116532.32 104262315.64 647893886.69 2934187559.61
Plus: changes in accounting policies 0.00 0.00 0.00 0.00 0.00 0.00
Correction of prior period errors 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00
II. Beginning balance as at the beginning
506521849.001577392975.9698116532.32104262315.64647893886.692934187559.61
of this year
III. Increase/decrease in the current period 0.00 0.00 0.00 0.00 -18917007.19 -18917007.19
(I) Total comprehensive income 0.00 0.00 0.00 0.00 17046021.90 17046021.90
(II) Capital contributed or reduced by 0.00 0.00 0.00 0.00 0.00 0.00
owners
1. Ordinary shares contributed by owners 0.00 0.00 0.00 0.00 0.00 0.00
2. Capital invested by the holders of other 0.00 0.00 0.00 0.00 0.00 0.00
equity instruments
13Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
3. Amounts of share-based payments 0.00 0.00 0.00 0.00 0.00 0.00
recognized in owners' equity
4. Others 0.00 0.00 0.00 0.00 0.00 0.00
(III) Profit distribution 0.00 0.00 0.00 0.00 -35963029.09 -35963029.09
1. Withdrawal of surplus reserves 0.00 0.00 0.00 0.00 0.00 0.00
2. Profits distributed to shareholders 0.00 0.00 0.00 0.00 -35963029.09 -35963029.09
3. Others 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Internal transfer of owners' equity 0.00 0.00 0.00 0.00 0.00 0.00
1. Conversion of capital reserve into share 0.00 0.00 0.00 0.00 0.00 0.00
capital
2. Conversion of surplus reserve into 0.00 0.00 0.00 0.00 0.00 0.00
share capital
3. Surplus reserves offsetting losses 0.00 0.00 0.00 0.00 0.00 0.00
4. Changes in benefit plans transferred to 0.00 0.00 0.00 0.00 0.00 0.00
retained earnings
5. Transfer of other comprehensive 0.00 0.00 0.00 0.00 0.00 0.00
income into retained earnings
6. Others 0.00 0.00 0.00 0.00 0.00 0.00
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00
1. Withdrawal in the current period 0.00 0.00 0.00 0.00 0.00 0.00
2. Amount used in the current period 0.00 0.00 0.00 0.00 0.00 0.00
(VI) Others 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance as at the end of the current
506521849.001577392975.9698116532.32104262315.64628976879.502915270552.42
period
Amount for the previous year
Unit: RMB
Half year period of 2024
Item Other comprehensive
Equity Capital reserve Surplus reserves Undistributed profits Total owners' equity
income
I. Ending balance last year 506521849.00 1577392975.96 83629830.81 104262315.64 689309946.54 2961116917.95
14Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Plus: changes in accounting policies 0.00 0.00 0.00 0.00 0.00 0.00
Correction of prior period errors 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00
II. Beginning balance as at the beginning
506521849.001577392975.9683629830.81104262315.64689309946.542961116917.95
of this year
III. Increase/decrease in the current period 0.00 0.00 -115825.06 0.00 -19189144.04 -19304969.10
(I) Total comprehensive income 0.00 0.00 -115825.06 0.00 13734772.68 13618947.62
(II) Capital contributed or reduced by 0.00 0.00 0.00 0.00 0.00 0.00
owners
1. Ordinary shares contributed by owners 0.00 0.00 0.00 0.00 0.00 0.00
2. Capital invested by the holders of other 0.00 0.00 0.00 0.00 0.00 0.00
equity instruments
3. Amounts of share-based payments 0.00 0.00 0.00 0.00 0.00 0.00
recognized in owners' equity
4. Others 0.00 0.00 0.00 0.00 0.00 0.00
(III) Profit distribution 0.00 0.00 0.00 0.00 -32923916.72 -32923916.72
1. Withdrawal of surplus reserves 0.00 0.00 0.00 0.00 0.00 0.00
2. Profits distributed to shareholders 0.00 0.00 0.00 0.00 -32923916.72 -32923916.72
3. Others 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Internal transfer of owners' equity 0.00 0.00 0.00 0.00 0.00 0.00
1. Conversion of capital reserve into share 0.00 0.00 0.00 0.00 0.00 0.00
capital
2. Conversion of surplus reserve into 0.00 0.00 0.00 0.00 0.00 0.00
share capital
3. Surplus reserves offsetting losses 0.00 0.00 0.00 0.00 0.00 0.00
4. Changes in benefit plans transferred to 0.00 0.00 0.00 0.00 0.00 0.00
retained earnings
5. Transfer of other comprehensive 0.00 0.00 0.00 0.00 0.00 0.00
income into retained earnings
6. Others 0.00 0.00 0.00 0.00 0.00 0.00
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00
15Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
1. Withdrawal in the current period 0.00 0.00 0.00 0.00 0.00 0.00
2. Amount used in the current period 0.00 0.00 0.00 0.00 0.00 0.00
(VI) Others 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance as at the end of the current
506521849.001577392975.9683514005.75104262315.64670120802.502941811948.85
period
16Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
III. Basic information about the company
1. Company profile
Shenzhen Textile (Holdings) Co. Ltd. (hereinafter referred to as "the Company") is a joint stock limited company registered
in Guangdong Province. In August 1994 the Company publicly issued RMB ordinary shares (A shares) and domestically listed
foreign shares (B shares) to the domestic and overseas public respectively and listed on the SZSE for trading.Headquartered in Shenzhen Guangdong Province the Company and its subsidiaries (hereinafter referred to as "the Group")
are principally engaged in the research and development production and marketing of polarizers for liquid crystal displays as well
as property management and textile and apparel businesses which are mainly located in the prosperous commercial area of
Shenzhen.
2. The date of approval of the financial statements
The consolidated and parent company financial statements of the Company were approved by the Board of Directors of the
Company on August 21 2025.IV. Basis for preparation of financial statements
1. Basis for preparation
The Group implements the Accounting Standards for Business Enterprises and related provisions issued by the Ministry of
Finance. In addition the Group also discloses relevant financial information in accordance with the Rules for the Compilation and
Reporting of Information Disclosure by Companies Issuing Securities to the Public No. 15 - General Provisions on Financial
Reports (Revised in 2023).
2. Going concern
The Group has evaluated its going-concern ability for 12 months starting from June 30 2025 and has not found any matters
and circumstances that cast significant doubt on the going-concert ability. Therefore the financial statements have been prepared
on the going concern basis.
17Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
3. Accounting basis and pricing principle
The Group's accounting is based on the accrual basis. With the exception of certain financial instruments measured at fair
value these financial statements are based on historical costs. If an asset is impaired the corresponding impairment provision shall
be made in accordance with relevant regulations.Under historical cost measurement assets are measured according to the amount of cash or cash equivalents paid at the time
of acquisition or the fair value of the consideration paid. Liabilities are measured in terms of the amount of money or assets
actually received as a result of assuming current obligations or the amount of contracts under current obligations or the amount of
cash or cash equivalents expected to be paid in daily activities to repay liabilities.Fair value is the price that market participants need to pay to receive or transfer a liability for the sale of an asset 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 these financial statements is determined on this basis.For financial assets that use the transaction price as the fair value at the time of initial recognition and use valuation
techniques involving unobservable input values in the subsequent measurement of fair value the valuation technology is corrected
during the valuation process so that the initial recognition result determined by the valuation technology is equal to the transaction
price.Fair value measurement is divided into three levels based on the observability of the input values of fair value and the
importance of these inputs to the overall fair value measurement:
●The first level input is the unadjusted quotation of the same asset or liability available on the measurement date in the
active market.●The second-level input value is the input value that is directly or indirectly observable of the relevant asset or liability in
addition to the first-level input value.●The third level input value is the unobservable input value of the underlying asset or liability.Significant accounting policies and accounting estimates
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the company meet the requirements of the Accounting Standards for Business
Enterprises and truly and completely reflect the Company's consolidated and parent company's financial position as at June 30
2025 the consolidated and parent company's operating results changes in consolidated and parent company's shareholders' equity
and consolidated and parent company's cash flows for the first half of 2025.
2. Accounting period
The Company adopts the Gregorian calendar year for its accounting year that is from January 1 to December 31 of each year.
3. Operating cycle
Operating cycle refers to the period from the purchase of assets for processing to the realization of cash or cash equivalents
by the enterprise. The operating cycle of the Company is 12 months.
18Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
4. Recording currency
RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries operate. The
Company and its domestic subsidiaries adopt RMB as the recording currency. The Company's overseas subsidiaries determine
RMB as their recording currency based on the currency in the main economic environment in which they operate. The currency
used by the Company in preparing these financial statements is RMB.
5. Determination methods and selection basis for materiality threshold
□Applicable □ Not applicable
Item Importance criteria
Significant accounts receivable with the provision for bad debts The individual book balance accounts for more than 0.5% of
made on an individual basis the total assets
The individual recovery or reversal amount accounts for more
Recovery or reversal amount of provision for bad debts of than 10% of the total amount of provision for bad debts
significant accounts receivable recovery or reversal of the corresponding accounts receivable
and the amount exceeds RMB 10 million
Advances to suppliers with aging over 1 year and of significant
Individual amount accounts for more than 0.5% of total assets
amount
Important accounts payable advances from customers
Individual amount accounts for more than 0.5% of total assets
contractual liabilities and other payables with aging over 1 year
Other cash received related to significant investing activities The amount exceeds RMB 50 million
Other cash paid related to significant investing activities The amount exceeds RMB 50 million
The total assets total revenue or total profit of the non-wholly-
owned subsidiary account for more than 10% of the amount of
Major non-wholly-owned subsidiaries
the corresponding items in the consolidated financial
statements of the Group
The book value of the long-term equity investments of the
enterprise at the end of the year accounts for more than 5% of
Significant joint ventures or associates
the net assets of the consolidated financial statements of the
Group
6. Accounting treatments for business combinations under common control and those not under common
control
Business combinations are categorized into those under common control and those not under common control.
6.1 Business combinations under common control
If before and after the business combination all parties involved are ultimately controlled by the same party or the same
group of parties and such control is not temporary the combination is considered under common control.The assets and liabilities obtained in the business combination are measured at their book value as recorded in the
consolidated financial statements of the ultimate controller on the combination date. Any difference between the book value of the
net assets acquired by the combining party and the book value of the consideration paid is adjusted against the share premium in
capital reserve. If the equity premium is insufficient the difference is adjusted against retained earnings.All direct expenses incurred for the purpose of the business combination are recognized in current profit or loss as they occur.
6.2 Business combinations not under common control and goodwill
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When the entities involved in the combination are not under the ultimate control of the same party or the same group of
parties before and after the combination it is considered a business combination not under common control.The combination cost refers to the fair value of the assets paid the liabilities incurred or assumed and the equity instruments
issued by the acquirer to obtain the right of control of the acquiree. Any intermediary fees for business combination including but
not limited to audit legal and valuation consulting services and other related G&A expenses incurred by the acquirer are charged
to current profit or loss as they arise.Any identifiable assets liabilities and contingent liabilities of the acquiree that meet the recognition criteria and are obtained
by the acquirer in the combination are measured at fair value on the acquisition date.If the combination cost exceeds the acquiree's fair value share of net identifiable assets obtained this difference is recognized
as goodwill and initially measured at cost. If the combination cost is less than the acquiree's fair value share of net identifiable
assets obtained the acquirer shall first reassess the fair values of all identifiable assets liabilities and contingent liabilities of the
acquiree as well as the measurement of the combination cost. After reassessment if the combination cost is still less than
acquiree's fair value share of net identifiable assets obtained the difference is included in current profit or loss.Goodwill arising from a business combination is presented separately in the consolidated financial statements and is
measured at cost less any accumulated provision for impairment.
7. Criteria for determining control and preparation methods for consolidated financial statements
7.1 Criteria for determining control
Control means that an investor has power over the investee derives variable returns by participating in the investee's relevant
activities and can use that power to affect the amount of returns. Whenever changes in relevant facts and circumstances alter any
element of this definition of control the Group will reassess the situation.
7.2 Methods of preparing consolidated financial statements
The consolidation scope in the consolidated financial statements is determined on the basis of control.A subsidiary is consolidated from the date the Group obtains the right of control over it until the date such right is lost.For subsidiaries that the Group disposes of operating results and cash flows prior to the disposal date (the date when the loss
of control occurs) are appropriately included in the consolidated income statement and consolidated cash flow statement.For subsidiaries acquired in a business combination not under common control their operating results and cash flows from
the acquisition date (the date when the right of control is obtained) are appropriately included in the consolidated income statement
and consolidated cash flow statement.For subsidiaries acquired in a business combination under common control regardless of the point in time during the
reporting period at which the combination takes place the subsidiary is deemed to have been under the Group's consolidation
scope from the date it came under the ultimate controller. Its operating results and cash flows from the earliest beginning date of
the reporting period are appropriately included in the consolidated income statement and consolidated cash flow statement.
20Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
The primary accounting policies and reporting periods adopted by the subsidiaries are determined in accordance with the
uniform accounting policies and reporting periods set by the Company.Any effects on the consolidated financial statements from intercompany transactions between the Company and its
subsidiaries or among the subsidiaries themselves are eliminated upon consolidation.The share of owners' equity of a subsidiary not attributable to the parent company is presented as minority equity and listed as
"minority equity" under the owners' equity item in the consolidated balance sheet. the share of the subsidiary's net profit or loss
attributable to minority interests is presented in the consolidated income statement under the net profit item as "minority interest
income".If the losses borne by minority shareholders exceed the share of owners' equity they hold at the beginning of the subsidiary's
period the excess continues to be deducted from the minority interests.Transactions involving the purchase of a subsidiary's minority interests or the partial disposal of a subsidiary's equity
investments without losing the right of control are accounted for as equity transactions. The book value of the parent company's
owners' equity and the minority interests are adjusted to reflect the changes in their respective ownership in the subsidiary. Any
difference between the adjustment to minority interests and the fair value of the consideration paid or received is adjusted against
the capital reserve. If the capital reserve is insufficient the difference is adjusted against retained earnings.
8. Classification of joint venture arrangements and accounting treatments for joint operations
Joint venture arrangements are classified as either joint operations or joint ventures based on the rights and obligations of the
parties—determined by factors such as the arrangement's structure legal form and contractual terms. A joint operation is a joint
arrangement in which the parties have rights to the related assets and obligations for the related liabilities. A joint operation refers
to those joint venture arrangements under which the joint venture is entitled to relevant assets and be responsible for relevant
liabilities. A joint venture is a joint venture arrangement in which the parties are entitled only to the arrangement's net assets.The Group's investments in joint ventures are accounted for under the equity method. For details please refer to "17. Long-
term equity investment".
9. Determination criteria for cash and cash equivalents
Cash refers to cash on hand and deposits readily available for payment. Cash equivalents refer to short-term (generally
maturing within three months from the date of purchase) and highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
10. Foreign currency transactions and translation of foreign currency statements
10.1 Foreign currency transactions
Foreign currency transactions are initially recognized at the exchange rate similar to the spot exchange rate on the transaction
date and the exchange rate similar to spot exchange rate on the date of the transaction shall be determined by a systematic and
reasonable method.
21Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
At each balance sheet date foreign currency monetary items are translated into RMB at the spot rate on that date. Any
exchange differences arising from changes in the spot exchange rate (compared to the rate at initial recognition or the previous
balance sheet date) are recognized in current profit or loss except for: (1) exchange differences on foreign-currency-specific
borrowings that qualify for capitalization which are capitalized as part of the cost of the related asset during the capitalization
period; (2) exchange differences on hedging instruments used to hedge foreign exchange risk which are accounted for under
hedge accounting; (3) foreign exchange differences arising from changes in the book balance of monetary items classified as
measured at fair value through other comprehensive income except for amortized costs are recognized in current profit or loss.When preparing consolidated financial statements involving foreign operations if a foreign currency monetary item
essentially constitutes a net investment in a foreign overseas operation any exchange differences arising from the fluctuation in
exchange rate are included under "Exchange differences on translation of foreign currency statements" in other comprehensive
income; Upon disposal of the foreign operation these differences are recognized in profit or loss for the disposal period.Foreign currency non-monetary items measured at historical cost continue to be measured using the spot exchange rate in
recording currency on the transaction date. For foreign currency non-monetary items measured at fair value the spot exchange rate
on the date the fair value is determined is used for translation. Any difference between the translated amount in recording currency
and the original currency is treated as a fair value change (including fluctuation in exchange rate) and is recognized in current
profit or loss or other comprehensive income as appropriate.
10.2 Translation of foreign-currency financial statements
To prepare consolidated financial statements foreign-currency financial statements of overseas operations are translated into
RMB as follows: all assets and liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet date;
shareholders' equity items are translated at the spot exchange rate on the date of occurrence; all items in the income statement and
items reflecting profit distribution are translated using an exchange rate approximating the spot exchange rate on the transaction
date; any difference between the sum of translated assets and the sum of translated liabilities plus 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 an exchange rate similar to the spot
exchange rate on the date of the cash flow. The impact of a fluctuation in exchange rate on cash and cash equivalents is presented
separately in the statement of cash flows under "Effect of exchange rate changes on cash and cash equivalents" as an adjustment
item.The figures for the prior year-end and the actual amounts for the previous year are presented according to the amounts
translated in the previous year's financial statements.When the Group disposes of its entire owners' equity in a foreign operation or otherwise loses the right of control over a
foreign operation—whether by partially disposing of equity investments or for any other reason—all differences on translation of
foreign currency statements related to that foreign operation and presented under shareholders' equity (attributable to the parent
company) in the balance sheet are transferred in full to profit or loss for the disposal period.When disposing of part of an equity investments or in other circumstances that reduce the Group's ownership interest in an
overseas operation without losing the right of control over that operation any differences on translation of foreign currency
statements related to the disposed portion are attributed to minority interests and are not transferred to profit or loss for the current
period. When disposing of a portion of equity in an overseas operation that is classified as an associate or a joint venture the
22Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
differences on translation of foreign currency statements related to that operation are transferred to profit or loss in the disposal
period in proportion to the percentage of equity disposed.
11. Financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to the contractual provisions of a
financial instrument.For purchases or sales of financial assets in the ordinary course of business the Group recognizes the assets to be received
and the liabilities to be assumed on the trade date or derecognizes the assets sold on the trade date.Financial assets and financial liabilities are measured at fair value upon initial recognition (see Note (Ⅳ) "Basis of accounting
and valuation principles" for details on determining fair value). For financial assets and liabilities measured at fair value through
profit or loss transaction costs are recognized directly in profit or loss for the current period; for other categories of financial
assets and liabilities the relevant transaction costs are included in the initial recognition amount. When the Group initially
recognizes accounts receivable that do not include a significant financing components or when the financing components of a
contracts not exceeding is disregarded under Accounting Standards for Business Enterprises No. 14 - Revenue (hereinafter
referred to as the "Revenue Standard") such receivables are initially measured at the transaction price as defined in the Revenue
Standard.The effective interest method is the method used to calculate the amortized cost of a financial asset or liability and to allocate
the interest income or interest expenses over the relevant accounting periods.The effective interest rate is the rate that discounts the estimated future cash flows over the expected life of a financial asset
or liability to the financial asset's book balance or the financial liability's amortized cost. In determining the effective interest rate
the Group estimates expected cash flows based on all contractual terms of the financial asset or liability (e.g. early repayment
extension call options or other similar options) but does not factor in expected credit losses.The amortized cost of a financial asset or liability is the initial recognized amount minus any repaid principal plus or minus
the accumulated amortization of the difference between the initial recognized amount and the amount at maturity using the
effective interest method and then minus the accumulated provision for losses (applicable only to financial assets).
11.1 Classification recognition and measurement of financial assets
After initial recognition the Group subsequently measures different categories of financial assets at amortized cost at fair
value through other comprehensive income or at fair value through profit or loss.If the contractual terms of a financial asset stipulate that on specified dates cash flows comprise solely payments of principal
and interest on the outstanding principal and the Group's business model for managing this financial asset is to collect the
contractual cash flows the Group classifies this financial asset as measured at amortized cost. Such financial assets mainly include
monetary funds notes receivable accounts receivable and other receivables.If the contractual terms of a financial asset stipulate that on specified dates cash flows comprise solely payments of principal
and interest on the outstanding principal and the Group's business model for managing the financial asset is both to collect
contractual cash flows and to sell the financial asset then the Group classifies this asset as measured at fair value through other
comprehensive income. Such financial assets with a maturity of more than one year from the date of acquisition are presented as
23Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
"Other debt investments" while those maturing within one year (inclusive) from the balance sheet date are presented under "Non-
current assets due within one year." Accounts receivable and notes receivable classified upon acquisition as measured at fair value
through other comprehensive income are presented under "Receivables financing" and any other items acquired with a maturity of
one year (inclusive) or less are presented under "Other current assets."
At initial recognition on an individual financial asset basis the Group may irrevocably designate a non-trading equity
instrument investment other than any contingent consideration recognized in a business combination not under common control
as measured at fair value through other comprehensive income. Such financial assets are presented as "Other equity instrument
investments."
If a financial asset meets any of the following conditions it indicates that the Group holds this asset for trading purposes:
* The main purpose of acquiring the financial asset is to sell it in the near term.* Upon initial recognition the financial asset is part of an identifiable portfolio of financial instruments that is
collectively managed and there is objective evidence of a recent pattern of short-term profit-taking.* The financial asset is a derivative except for derivatives that meet the definition of a financial guarantee contract or are
designated as effective hedging instruments.Financial assets measured at fair value through profit or loss include those classified as such and those designated as such:
* Any financial asset that does not meet the classification criteria for measurement at amortized cost or at fair value
through other comprehensive income is classified as measured at fair value through profit or loss.* At initial recognition to eliminate or significantly reduce accounting mismatches the Group may irrevocably designate
a financial asset as measured at fair value through profit or loss.Financial assets measured at fair value through profit or loss are presented under "Financial assets held for trading." Those
due in more than one year from the balance sheet date (or with no fixed maturity) and expected to be held for more than one year
are presented under "Other non-current financial assets."
11.1.1 Financial assets measured by amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using the effective interest method
and any gain or loss arising from impairment or derecognition is recognized in profit or loss.The Group recognizes interest income on financial assets measured at amortized cost using the effective interest method. For
purchased or originated financial assets that are already credit-impaired the Group determines interest income from the date of
initial recognition based on the asset's amortized cost and a credit-adjusted effective interest rate. For all other financial assets the
Group calculates interest income by multiplying the book balance of the asset by the effective interest rate.
11.1.2 Financial assets measured at fair value through other comprehensive income
For a financial asset classified as measured at fair value through other comprehensive income any impairment loss or gain
and interest income calculated using the effective interest method are recognized in profit or loss while all other fair value
changes are recognized in other comprehensive income. The amount recognized in profit or loss each period is the same as if the
asset had been measured at amortized cost throughout its life. When such a financial asset is derecognized the cumulative gains or
losses previously recognized in other comprehensive income are transferred from other comprehensive income to profit or loss.
24Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
For a non-trading equity instrument investment designated as measured at fair value through other comprehensive income
fair value changes are recognized in other comprehensive income. When the financial asset is derecognized the cumulative gains
or losses previously recognized in other comprehensive income are transferred out of other comprehensive income and into
retained earnings. During the period the Group holds this non-trading equity instrument investment if the right to receive
dividends is established the related economic benefits are likely to flow to the Group and the amount of dividends can be
measured reliably then the Group recognizes dividend income in profit or loss.
11.1.3 Financial assets measured at fair value through the current profit or loss
Financial assets measured at fair value through profit or loss are subsequently measured at fair value; gains or losses arising
from fair value changes as well as any dividend and interest income related to these assets are recognized in profit or loss.
11.2 Impairment of financial instruments
The Group recognizes impairment allowances and provision for losses based on expected credit losses for financial assets
measured at amortized cost financial assets classified as fair value through other comprehensive income and lease receivables.For all notes receivable and accounts receivable arising from transactions governed by the Revenue Standard as well as
operating lease receivables arising from transactions governed by Accounting Standards for Business Enterprises No. 21 - Leases
the Group measures the provision for loss at an amount equal to the lifetime expected credit losses.For other financial instruments except for those purchased or originated with credit loss the Group evaluates changes in
credit risk since initial recognition at each balance sheet date. If the credit risk of such a financial instrument has significantly
increased since initial recognition the Group measures the provision for loss at an amount equal to the lifetime expected credit
losses; if it has not significantly increased the Group measures the provision for loss at an amount equal to the 12-month expected
credit losses. Except for financial assets classified as fair value through other comprehensive income any increase or reversal of
the provision for credit losses is recognized as an impairment loss or gain in the current period's profit or loss. For financial assets
classified as fair value through other comprehensive income the Group recognizes the provision for credit losses in other
comprehensive income and records the impairment loss or gain in profit or loss without reducing the asset's book value in the
balance sheet.If in a prior period the Group measured the provision for loss at an amount equal to the lifetime expected credit losses (due
to a significant increase in credit risk since initial recognition) but at the current balance sheet date that significant increase in
credit risk no longer applies then the Group measures the provision for loss at an amount equal to the 12-month expected credit
losses. The amount of any resulting reversal is recognized as an impairment gain in profit or loss.
11.2.1 Significant increase in credit risk
The Group uses reasonable and supportable forward-looking information to compare the risk of default on a financial
instrument at the balance sheet date with the risk of default at initial recognition in order to determine whether the credit risk has
significantly increased since initial recognition.When the Group assesses whether credit risk has increased significantly it considers the following factors:
(1) Whether internal price indicators resulting from changes in credit risk have undergone a significant change.
25Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(2) Whether if an existing financial instrument is effectively originated or issued as a new financial instrument on the balance
sheet date there is a significant change in the interest rate or other terms of that instrument (e.g. more stringent contractual terms
increased collateral or guarantees or a higher yield).
(3) Whether external market indicators of credit risk for the same financial instrument or similar instruments with the same
expected term have changed significantly. Such indicators include credit spreads credit default swap (CDS) prices for the
borrower the length of time and extent to which a financial asset's fair value is below its amortized cost and other market
information related to the borrower (e.g. changes in the prices of the borrower's debt or equity instruments).
(4) Whether the external credit rating of the financial instrument has actually changed or is expected to change significantly.
(5) Whether there has been a downgrade in the debtor's internal credit rating either actual or anticipated.
(6) Whether there has been an adverse change in the debtor's business financial or economic conditions that is expected to
significantly affect the debtor's ability to meet its debt obligations.
(7) Whether the debtor's operating performance whether actual or expected has changed significantly.
(8) Whether the credit risk of other financial instruments issued by the same debtor has increased significantly.
(9) Whether there has been a significantly adverse change in the regulatory economic or technological environment in which
the debtor operates.
(10) Whether the value of collateral securing the debt or the quality of a third-party guarantee or credit enhancement has
changed significantly. Such changes are expected to reduce the debtor's economic incentive to repay under the contractual
schedule or affect the probability of default.
(11) Whether there has been a significant change in factors that would reduce the borrower's economic incentive to repay in
accordance with the contractual terms.
(12) Whether the loan contract is expected to be modified including the potential release or amendment of contractual
obligations due to anticipated breaches of contract granting interest-free periods raising interest rates requiring additional
collateral or guarantees or otherwise modifying the contractual framework of the financial instrument.
(13) Whether there is a significant change in the debtor's expected performance or repayment behavior.
(14) Whether the Group's credit management approach for the financial instrument has changed.
Regardless of the outcome of the above assessment if payments under the financial instrument's contract are more than (or
equal to) 30 days past due it indicates that the financial instrument's credit risk has increased significantly.On the balance sheet date if the Group concludes that a financial instrument has only low credit risk it presumes the credit
risk has not increased significantly since initial recognition. A financial instrument is considered to have low credit risk if its risk
of default is low the borrower has a strong capacity to meet its contractual cash flow obligations in the short term and even over a
longer period adverse changes in economic and operating conditions would not necessarily reduce the borrower's ability to meet
those obligations.
26Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
11.2.2 Financial assets with credit loss
When one or more events occur that the Group expects to adversely affect the future cash flows of a financial asset that asset
is considered credit-impaired. Evidence for a credit-impaired financial asset includes the following observable information:
* The debtor breaches a contract such as default or delinquency in interest or principal payments.* The debtor breaches the contract such as default or delay in repayment of interest or principal.* The creditor grants concessions to the debtor in consideration of the debtor's financial difficulties that would not
otherwise be offered under normal circumstances.* The debtor is highly likely to go bankrupt or undertake other financial restructuring.* The issuer's or debtor's financial difficulties lead to the disappearance of an active market for the financial asset.* A financial asset is purchased or originated at a substantial discount reflecting the fact that a credit loss has occurred.Based on the Group's internal credit risk management if internal recommendations or externally obtained information
indicates that the debtor of a financial instrument cannot fully repay all creditors including the Group (regardless of any guarantee
obtained by the Group) the Group considers this a default event.Regardless of the above assessment if payments under the financial instrument's contract are more than (or equal to) 90 days
past due the Group presumes the instrument is in default.
11.2.3 Determination of expected credit losses
For financial assets and lease receivables the expected credit loss is the present value of the difference between the
contractual cash flows the Group is entitled to receive and the cash flows the Group actually expects to receive.When measuring the expected credit losses on financial instruments the Group's method reflects: an unbiased probability-
weighted average determined by evaluating a range of possible outcomes; the time value of money; and reasonable and
supportable information about past events current conditions and forecasts of future economic conditions available without
undue cost or effort at the balance sheet date.
11.2.4 Write-off of financial assets
If the Group no longer reasonably expects to recover all or part of the contractual cash flows of a financial asset the Group
writes off the book balance of the financial asset directly. This write-off constitutes derecognition of the relevant financial asset.
11.3 Transfer of financial assets
A financial asset is derecognized if one of the following conditions is met: (1) the contractual right to receive cash flows from
the financial asset expires; (2) the financial asset has been transferred and substantially all the risks and rewards of ownership of
the asset have been transferred to the transferee; or (3) the financial asset has been transferred and although the Group has neither
transferred nor retained substantially all the risks and rewards of ownership it has not retained control over the asset.If the Group has neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset but
retains control of it the Group continues to recognize the transferred financial asset to the extent of its continuing involvement
and recognizes a corresponding liability. The Group measures that liability as follows:
27Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
* Where the transferred financial asset is measured at amortized cost the book value of the related liability equals the
book value of the asset in which the Group continues to be involved minus the amortized cost of any rights retained by
the Group (if the Group retained such rights due to the transfer) and plus the amortized cost of any obligations assumed
by the Group (if the Group assumed such obligations due to the transfer). Such liabilities are not designated as financial
liabilities measured at fair value through profit or loss.* Where the transferred financial asset is measured at fair value the book value of the related liability equals the book
value of the asset in which the Group continues to be involved minus the fair value of any rights retained by the Group
(if the Group retained such rights due to the transfer) and plus the fair value of any obligations assumed by the Group
(if the Group assumed such obligations due to the transfer). The fair values of such rights and obligations are measured
on a stand-alone basis.When the full transfer of a financial asset qualifies for derecognition the difference between the book value of the transferred
financial asset on the derecognition date and the sum of the consideration received and the corresponding portion of the
cumulative fair value changes previously recognized in other comprehensive income is recognized in profit or loss. If the
transferred asset by the Group is a non-trading equity instrument investment designated as measured at fair value through other
comprehensive income any cumulative gains or losses previously recognized in other comprehensive income are transferred out
of other comprehensive income and into retained earnings.When a partial transfer of a financial asset qualifies for derecognition the book value of the original asset before transfer is
allocated between the portion being derecognized and the portion that continues to be recognized based on the relative fair values
of each portion on the transfer date. The difference between (a) the consideration received for the derecognized portion plus the
corresponding portion of the cumulative fair value changes previously recognized in other comprehensive income and (b) the book
value of the derecognized portion on the derecognition date is recognized in profit or loss. If the transferred asset by the Group is a
non-trading equity instrument investment designated as measured at fair value through other comprehensive income any
cumulative gains or losses previously recognized in other comprehensive income are transferred out of other comprehensive
income and into retained earnings.If a full transfer of a financial asset does not satisfy the derecognition criteria the Group continues to recognize the entire
transferred financial asset and recognizes the consideration received as a liability.
11.4 Classification of financial liabilities and equity instruments
Based on the contractual terms and the economic substance of the issued financial instrument rather than merely its legal
form and in conjunction with the definitions of financial liabilities and equity instruments the Group classifies the financial
instrument (or its components) as either a financial liability or an equity instrument at initial recognition.
11.4.1 Classification recognition and measurement of financial liabilities
Upon initial recognition financial liabilities are classified as financial liabilities measured at fair value through profit or loss
or other financial liabilities.
11.4.1.1 Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss include financial liabilities held for trading (including
derivatives classified as financial liabilities) and those designated as measured at fair value through profit or loss. Except for
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derivative financial liabilities which are presented separately financial liabilities measured at fair value through profit or loss are
presented as financial liabilities held for trading.If a financial liability meets any of the following conditions it indicates that the Group has assumed this liability for trading
purposes:
* The primary purpose of assuming the financial liability is to repurchase it in the near term.* Upon initial recognition the financial liability is part of an identifiable portfolio of financial instruments that is
collectively managed and there is objective evidence of a recent pattern of short-term profit-taking.* The financial liability is a derivative except for derivatives that meet the definition of a financial guarantee contract or
are designated as effective hedging instruments.At initial recognition if any of the following conditions are met the Group may designate a financial liability as measured at
fair value through profit or loss: (1) the designation can eliminate or significantly reduce accounting mismatches; (2) under the
Group's formally documented risk management or investment strategy portfolios of financial liabilities or combined portfolios of
financial assets and liabilities are managed and evaluated on a fair value basis and this is reported internally to key officers; or (3)
it is part of an eligible hybrid contract containing an embedded derivative.Financial liabilities held for trading are subsequently measured at fair value with any gains or losses arising from fair value
changes along with dividends or interest expenses related to these liabilities recognized in profit or loss.For a financial liability designated as measured at fair value through profit or loss the portion of the fair value change
attributable to the Group's own credit risk is recognized in other comprehensive income while other changes in fair value are
recognized in profit or loss. When the financial liability is derecognized the accumulated fair value change attributable to changes
in the Group's own credit risk that was previously recorded in other comprehensive income is transferred to retained earnings. Any
dividends or interest expenses related to such financial liabilities are recognized in profit or loss. If treating the effect of changes in
the liability's own credit risk in this manner creates or enlarges an accounting mismatch in profit or loss the Group recognizes all
gains or losses on the liability (including those related to changes in its own credit risk) in profit or loss.
11.4.1.2 Other financial liabilities
Except for financial liabilities arising from the transfer of financial assets that do not meet derecognition criteria or where the
Group continues to be involved in transferred financial assets other financial liabilities are classified as financial liabilities
measured at amortized cost. They are subsequently measured at amortized cost and any gains or losses from derecognition or
amortization are recognized in profit or loss.If the Group modifies or renegotiates a contract with a counterparty and it does not result in the derecognition of a financial
liability subsequently measured at amortized cost but leads to changes in the contractual cash flows the Group recalculates the
book value of the financial liability and recognizes any related gain or loss in profit or loss. For recalculated book value the Group
shall determine it by discounting the renegotiated or modified contractual cash flows at the original effective interest rate of the
financial liability. For any costs or fees incurred as a result of modifying or renegotiating the contract the Group shall adjust the
book value of the modified financial liability and amortize them over the remaining term thereof.
11.4.2 Derecognition of financial liabilities
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If the present obligation of a financial liability is fully or partially discharged the liability (or the discharged portion) is
derecognized. If the Group (as borrower) signs an agreement with a lender to replace the original financial liability with a new one
and the terms of the new liability differ substantially from those of the original liability the Group derecognizes the original
liability and recognizes the new one.When a financial liability is fully or partially derecognized the difference between the book value of the derecognized
portion and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) is recognized in
profit or loss for the current period.
11.4.3 Equity instruments
An equity instrument is a contract that evidences a residual interest in the Group's assets after deducting all liabilities. The
Group treats the issuance (including refinancing) repurchase sale or cancellation of its equity instruments as changes in equity.The Group does not recognize fair value changes in equity instruments. Transaction costs directly attributable to equity
transactions are deducted from equity.The Group's distributions made to holders of equity instruments are treated as profit distribution and any issued stock
dividends do not affect the total shareholders' equity.
11.5 Derivatives
Derivatives including forward foreign exchange contracts are initially measured at fair value on the contract date and
subsequently measured at fair value.
11.6 Offsetting financial assets and financial liabilities
When the Group has a legal right to offset recognized financial assets and liabilities and that right is currently enforceable
and the Group intends to settle on a net basis or to realize the asset and settle the liability simultaneously the financial assets and
liabilities are presented on the balance sheet at the net amount. Otherwise financial assets and financial liabilities are presented
separately in the balance sheet without offset.
12. Notes receivable
12.1 Method for determining expected credit losses on notes receivable and the related accounting treatments
For notes receivable with significantly increased credit risk such as those past due and not accepted or where there is clear
evidence that the acceptor is likely unable to fulfill its acceptance obligation the Group evaluates credit losses on an individual
basis. Other notes receivable are evaluated based on their credit risk characteristics as a group.Any increase or reversal of the provision for expected credit losses on notes receivable is recognized as a credit loss or gain in
profit or loss.
12.2 Combination categories and basis for determining provision for credit losses according to credit risk characteristic
combination
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Apart from those notes receivable whose credit losses are determined on an individual basis the Group classifies the
remaining notes receivable into different groups based on shared credit risk characteristics:
Combination category Determination basis
Combination 1 Bank acceptance bills
Combination 2 Commercial acceptance bills
13. Accounts receivable
13.1 Method for determining expected credit losses on accounts receivable and the related accounting treatments
The Group uses an impairment matrix at the group level to determine expected credit losses for accounts receivable. Any
increase or reversal of the provision for expected credit losses of accounts receivable is recognized as a credit loss or gain in profit
or loss.
13.2 Combination categories and basis for determining provision for credit losses according to credit risk characteristic
combination.The Group classifies accounts receivable into Combination 1 and Combination 2 based on the credit risk characteristics of
counterparties under different business segments. Combination 1 refers to accounts receivable arising from the polarizer business
revenue where provisions for credit losses are made based on overdue aging relative to the credit term. Combination 2 refers to
accounts receivable arising from property leasing and other business revenue where provisions for credit losses are made based on
natural aging.
13.3 Method for calculating aging when determining credit risk characteristic combination
The Group uses both the natural aging of accounts receivable and the overdue aging relative to the credit term as credit risk
characteristics applying an impairment matrix to determine expected credit losses. Natural aging is calculated starting from the
date of initial recognition of the accounts receivable while overdue aging begins once the natural aging exceeds the credit term
granted to the customer. If the terms and conditions of an accounts receivable are modified but do not lead to derecognition the
aging continues to accumulate.
13.4 Criteria for individual assessment of provision for credit losses
The Group individually determines credit losses for accounts receivable where there is evidence of a significant increase in
credit risk.
14. Receivables financing
14.1 Method for determining expected credit losses on receivables financing and the related accounting treatments
The Group determines credit losses for receivables financing on an individual-asset basis. The Group recognizes the
provision for credit losses for receivables financing in other comprehensive income and records any credit loss or gain in profit or
loss without reducing the book value presented in the balance sheet.
14.2 Criteria for individual assessment of provision for credit losses
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Based on the credit status of the accepting bank for bank acceptance bills the Group individually assesses and determines
credit losses for receivables financing.
15. Other receivables
15.1 Method for determining expected credit losses on other receivables and the related accounting treatments
The Group determines credit losses for other receivables on a group basis. Any increase or reversal of the provision for
expected credit losses on other receivables is recognized as a credit loss or gain in profit or loss.
15.2 Combination categories and basis for determining provision for credit losses according to credit risk characteristic
combination
The Group divides other receivables into different combinations based on common credit risk characteristics. Common credit
risk characteristics used by the Group include initial recognition date remaining contract term and length of overdue period.
15.3 Method for calculating aging when determining credit risk characteristic combination
The aging is calculated from the date of initial recognition. If the terms and conditions of other receivables are modified but
do not lead to derecognition the aging continues to accumulate.
16. Inventories
16.1 Types of inventories methods of costing for issuance inventory system and methods for amortizing low-value
consumables and packaging materials
16.1.1 Types of inventories
The Group's inventories mainly include raw materials work in progress finished products and materials processed on
consignment. Inventories are initially measured at cost which includes purchase costs processing costs and other expenditures
incurred to bring the inventories to their current location and condition.
16.1.2 Method of costing for issued inventories
When inventories are issued the actual cost is determined using the weighted average method.
16.1.3 Inventory system
The Group uses a perpetual inventory system.
16.1.4 Amortization methods for low-value consumables and packaging materials
Low-value consumables and packaging materials are amortized using the straight-line method or are written off in full at once.
16.2 Criteria for recognizing and methods for making provision for inventory depreciation
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On the balance sheet date inventories are measured at the lower of cost and net realizable value. If net realizable value is
lower than cost a provision for inventory depreciation is made.Net realizable value is the estimated selling price of inventories in the ordinary course of business less the estimated costs to
complete the estimated selling and distribution expenses and related taxes. When determining the net realizable value of
inventories the Group uses conclusive evidence while considering the purpose of holding the inventories and the impact of events
after the balance sheet date.After the provisions for the inventory depreciation are made the factors causing any write-down of inventory value have
disappeared leading to the net realizable values of inventories higher than its book value the amount of write-down shall be
resumed and be reversed from the original provision for inventory devaluation with the reversal being included in current profit or
loss.Generally provisions for inventory depreciation are made on an item-by-item basis.
17. Long-term equity investments
17.1 Criteria for determining common control and significant influence
Control means that an investor has power over the investee derives variable returns by participating in the investee's relevant
activities and can use that power to affect the amount of returns. Common control refers to shared control over an arrangement
under relevant agreements where decisions about the arrangement's relevant activities require the unanimous consent of the
parties sharing the right of control. Significant influence refers to the power to participate in decisions on an investee's financial
and operating policies but not to control or commonly control the formation of those policies. When determining whether the
investor can exercise control or significant influence over the investee the potential voting rights arising from convertible
corporate bonds or exercisable warrants currently held by the investor or other parties are taken into account.
17.2 Determination of initial investment cost
For a long-term equity investment acquired in a business combination under common control the initial investment cost is
determined on the combination date based on the share of the book value of the acquiree's owners' equity in the ultimate
controller's consolidated financial statements. Any difference between the initial investment cost of the long-term equity
investment and the book value of the cash paid non-cash assets transferred or liabilities assumed is adjusted against capital
reserve. If the capital reserve is insufficient the difference is adjusted against retained earnings. Where equity securities are issued
as consideration for the combination on the combination date the initial investment cost of the long-term equity investment is
determined based on the share of the book value of the acquiree's owners' equity in the ultimate controller's consolidated financial
statements. The total par value of the issued shares is recognized as share capital and any difference between the initial investment
cost and the total par value of the shares issued is adjusted against capital reserve. If the capital reserve is insufficient the
difference is adjusted against retained earnings.For a long-term equity investment acquired in a business combination not under common control on the acquisition date the
initial investment cost is determined based on the combination cost.Audit legal valuation consulting and other related G&A expenses incurred by the acquirer or purchaser for the business
combination are recognized in profit or loss when they occur.
33Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Long-term equity investments obtained through methods other than a business combination are initially measured at cost.Where an investor gains significant influence or common control but not control over an investee through additional investment
the cost of the long-term equity investment is the sum of the fair value of the previously held equity investment (as determined in
accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments)
and the new investment cost.
17.3 Subsequent measurement and recognition method of profit or loss
17.3.1 Long-term equity investments accounted for under the cost method
In the parent company's financial statements long-term equity investments in subsidiaries are measured using the cost
method. A subsidiary is an investee over which the Group can exercise control.Under the cost method long-term equity investments are measured at their initial investment cost. Any additional investment
or capital recovery adjusts the cost of the long-term equity investment. Current investment income is recognized based on the
amount of cash dividends or profits declared and distributed by the investee.
17.3.2 Long-term equity investments measured using the equity method
The Group applies the equity method to its investments in associates and joint ventures. An associate is an investee over
which the Group has significant influence and a joint venture is a joint venture arrangement under which the Group has rights to
the net assets of the arrangement.Under the equity method if the initial investment cost of the long-term equity investment exceeds the share of the fair value
of the investee's identifiable net assets at the time of investment the initial investment cost is not adjusted. If the initial investment
cost is less than the share of the fair value of the investee's identifiable net assets at the time of investment the difference is
recognized in current profit or loss and the cost of the long-term equity investment is adjusted accordingly.When the equity method is adopted for accounting the Group based on its attributable share of the net profit or loss and
other comprehensive income realized by the investee respectively recognize the investment income and other comprehensive
income and simultaneously adjust the book value of the long-term equity investment. COOEC shall calculate the shares according
to profits or cash dividends declared by the investee and correspondingly reduce the book value of long-term equity investments;
As to any change in owners' equity of the investee other than net profit or loss other comprehensive income and profit distribution
the Group shall adjust the book value of the long-term equity investment and include such change in capital reserves. When
recoginzing the attributable share of net profit or loss of the investee the Group shall based on the fair value of identifiable net
asset of the investee when it obtains the investmentrecognize the net profits of the investee after adjustment. If 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 and investment income and
other comprehensive income etc. shall be recognized on such basis. For transactions between the Group and associates and joint
ventures if the invested or sold assets do not constitute business the unrealized profit or loss from internal transactions will be
offset at the part attributable to the Group and the investment profit or loss will be recognized on that basis However the
unrealized losses from internal transactions between the Group and any investee shall not be offset if they belong to the losses
from the impairment of the transferred assets.
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When recognizing the net losses occurred in the investee that shall be shared the reduction value of book value of long-term
equity investments and other long-term equities that constitute net investments in the investee will be the limit until it becomes
zero. In addition if the Group has the obligation to assume extra-amount losses for the investee the estimated liabilities are
recognized according to the estimated obligations and included in the current investment losses. Where the investee realizes net
profits in the subsequent period the Group shall restore the income shared after making up for unrecognized losses undertaken by
such income.
17.4 Disposal of long-term equity investments
When a long-term equity investment is disposed of the difference between its book value and the actual proceeds is
recognized in current profit or loss. If a long-term equity investment has been accounted for using the equity method and the
remaining equity after disposal is still accounted for using the equity method any other comprehensive income previously
recognized under the equity method is treated on the same basis as if the investee had directly disposed of the related assets or
liabilities and is transferred proportionately. Any other changes in owners' equity of the investee other than net profit or loss
other comprehensive income and profit distribution which were previously recognized are transferred proportionately to the
current profit or loss. If a long-term equity investment is accounted for using the cost method and the remaining equity after
disposal continues to be accounted for using the cost method any other comprehensive income recognized before the Group
gained control under either the equity method or the accounting standards for recognizing and measuring financial instruments is
treated on the same basis as if the investee had directly disposed of the related assets or liabilities and is transferred
proportionately. Other changes in owners' equity other than net profit or loss other comprehensive income and profit distribution
in net asset of the investee accounted for and recognized by using the equity method shall be carried forward to the current profit
or loss.Where the Group loses the control over the investee due to the disposal of part of the equity investments when it prepares
separate financial statements the remaining equity after disposal that can commonly control or have significant influence on the
investee will be measured under the equity method and the remaining equity shall be deemed to have been adjusted under the
equity method on acquisition. If the remaining equity after disposal can not exercise common control or significant influence on
the investee such equity will be changed to be accounted for according to recognition and measurement standards of financial
instruments and the difference between fair value and book value on the date of loss of the control shall be included in the current
profit or loss. For other comprehensive income recognized by using the equity method or financial instruments recognition and
measurement standards before the Group obtains the control over the investee accounting treatment shall be made on the same
basis as that for direct disposal of relevant assets or liabilities by the investee when the Group loses the control over the investee.Other changes in owners' equity other than net profit or loss other comprehensive income and profit distribution in net asset of the
investee recognized by using the equity methodshall be carried forward to the current profit or loss when the control over the
investee is lost. Where the remaining equities after disposal are accounted for under the equity method the other comprehensive
income and other owners' equity shall be carried forward in proportion. If the remaining equity after disposal is changed to be
accounted for according to the recognition and measurement standards of the financial instruments the other comprehensive
income and other owner's equity shall be fully carried forward.In case the common control or significant influence over the investee is lost for disposing part of equity investments the
remaining equity will be changed to be accounted for according to the recognition and measurement principles of financial
instruments. The difference between the fair value and the book value on the date of the loss of common control or significant
influence shall be included in the current profit or loss. Any other comprehensive income previously recognized under the equity
method for the original equity investment is accounted for on the same basis as if the investee had directly disposed of related
assets or liabilities once the equity method ceases to apply. All other changes in owners' equity recognized due to factors other
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than net profit or loss other comprehensive income and profit distribution of the investee are transferred in full to current
investment income when the equity method is no longer applied.Where the Group disposes of equity investments in subsidiaries through multiple transactions and by stages until loss of
control if the above transactions belong to a package of transactions accounting treatment shall be made on the transactions as a
transaction to dispose equity investments of subsidiaries and lose the control. The difference between each disposal cost and the
book value of long-term equity investments corresponding to disposed equities before the loss of control shall be firstly recognized
as other comprehensive income and then transferred into the current profit or loss at the loss of control.
18. Investment properties
Investment property refers to property held to earn rentals or for capital appreciation or both and includes leased land use
rights and leased buildings.Investment property is initially measured at cost. Subsequent expenses related to the investment property if the economic
benefits related to the asset are likely to flow in and the cost can be measured reliably shall be included in the cost of the
investment property. Other subsequent expenses shall be included in the current profit or loss when incurred.The Group uses the cost model for subsequent measurement of investment property and provides for depreciation on a
straight-line basis over its service life. The depreciation method useful life estimated residual value and annual depreciation rates
for each category of investment property are as follows:
Type Depreciation method Depreciation life Residual value rate Annual depreciation(years) (%) rate (%)
Houses and buildings Straight-line method 10-40 0.00-4.00 2.40-10.00
When an investment property is being disposed of or permanently withdraws from use without any economic benefits
expected from the disposal the investment property shall be derecognized.The difference between the disposal proceeds of an investment property (through sale transfer retirement or damage) and its
book value net of related taxes and fees is recognized in current profit or loss.
19. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets held for the purpose of producing goods providing services renting or operating
management with a service life exceeding one fiscal year. Fixed assets will only be recognized when the economic benefits
associated with such assets are likely to flow into the Group and the cost can be measured reliably. A fixed asset is initially
measured at cost.For the subsequent expenses related to the fixed assets if the economic benefits related to the fixed assets are likely to flow in
and the cost can be measured reliably they shall be included in the cost of the fixed assets and the book value of the replaced part
shall be derecognized Other subsequent expenses shall be included into the current profit or loss when incurred.
(2) Depreciation method
Annual depreciation
Type Depreciation method Depreciation life Residual value rate
rate
Buildings and
Straight-line method 10-40 years 0.00%-4.00% 2.40%-10.00%
constructions
Machinery equipment Straight-line method 10-14 years 4.00% 6.86%-9.60%
Transportation
Straight-line method 8 years 4.00% 12.00%
equipment
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Electronic equipment
Straight-line method 5 years 4.00% 19.20%
and others
From the month following the date a fixed asset is in working condition for intended use the Group depreciates the asset on a
straight-line basis over its service life. The depreciation method depreciation life estimated residual value rate and annual
depreciation rate of various fixed assets are as above:
Estimated net residual value refers to the amount obtained by the Group from the disposal of the fixed assets at present after
deducting the estimated disposal expenses assuming that the estimated service life of the fixed asset has expired and the fixed
asset is in the expected state at the end of its service life.When the fixed assets are disposed of or it is expected that no economic benefits can be generated through use or disposal the
fixed assets shall be derecognized. The difference of the revenue from disposal of fixed assets such as sales transfer retirement or
damage deducting their book value and related taxes shall be included into the current profit or loss.The Group will review service life estimated net residual value and depreciation methods of the fixed assets at the end of
each year. Changes if any shall be handled as changes in accounting estimates.
20. Construction in progress
The construction in progress is measured at actual cost which includes various project expenditures incurred during the
construction period capitalized borrowing costs before the project reaches working condition for intended use and other related
costs. No depreciation is made for construction in progress.The construction in progress shall be carried forward to the fixed assets after it reaches the working condition for intended use.The criteria and timing for the conversion of various types of construction in progress into fixed assets are as follows:
Type Criteria for conversion to fixed assets Time point of conversion into fixedassets
The machinery equipment shall be carried forward to the fixed assets
Installation of when it has been accepted and the following conditions are met:
machinery (1) The machinery equipment and its supporting facilities have been Reach working condition for
equipment installed; intended use(2) After commissioning the machinery equipment can maintain normal
and stable operation or produce qualified products for a period of time.
21. Borrowing costs
The capitalization of the borrowing costs that can be directly attributable to the acquisition construction or production of
assets that meet the capitalization conditions will start when the asset expenditure has incurred the borrowing costs have incurred
and the acquisition construction or production activities necessary for the asset to reach the intended usable or salable state have
begun; The capitalization shall be ceased when the acquired and constructed or produced assets eligible for capitalization have
reached their working condition for intended use or sales condition. The remaining borrowing costs are recognized as expenses on
occurrence.
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22. Intangible assets
(1) Service life and basis for determination estimates amortization method or review procedure
Intangible assets include land use right software and patent rights etc.The intangible assets shall be initially measured at the costs. For intangible assets with limited service life the original value
shall be evenly amortized by straight-line method within the expected service life from the time when they are available for use.The intangible assets with uncertain service life shall not be amortized. The amortization method service life and basis of
determination and residual value rate of various intangible assets are as follows:
Type Amortizationmethod Service life (year) and basis of determination
Residual value
rate (%)
Land use rights Straight-linemethod 50 (Determine the service life based on the statutory service life) 0
Software Straight-line 5 (Determine the service life based on the period expected tomethod bring economic benefits) 0
Patent right Straight-line 15 (Determine the service life based on the period expected tomethod bring economic benefits) 0
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.
(2) Scope of R&D expenditures and related accounting treatments
The expenditures in research phase will be included in current profit or loss on occurrence.Expenditures in the development stage will be recognized as intangible assets only when the following conditions are
simultaneously satisfied and included in current profit or loss if the following conditions are not satisfied:
(1) It is technically feasible to complete the intangible assets so that it can be used or sold;
(2) It has the intention to complete the intangible assets and use or sell them;
(3) The manner in which an intangible asset generates economic benefits includes the ability to prove that there is a market
for the products produced through the use of this intangible asset or a market for the intangible asset itself. In the case that the
intangible asset will be used internally its usefulness shall be proven.
(4) With the support of sufficient technology financial resources and other resources it is able to complete the development
of the intangible assets and it is able to use or sell the intangible assets;
(5) The expenditures attributable to the intangible assets in the development stage can be measured reliably.
Where the research expenditures and the development expenditures are indistinguishable the COOEC shall include research
expenditures and development expenditures incurred in current profit or loss. The cost of the intangible assets formed by internal
development activities only includes the total expenditure incurred from the time when the capitalization conditions are met to the
time when the intangible assets reach the intended use. The expenses recognized in profit or loss before meeting the capitalization
conditions during the development for the same intangible asset will not be adjusted.
38Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
The collection scope of R&D expenses includes wages and salaries and welfare expenses of personnel directly engaged in
R&D activities materials fuel and power expenses directly consumed by R&D activities and depreciation expenses of
instruments and equipment for R&D activities.
23. Impairment of long-term assets
On each balance sheet date the Group checks whether there is any indication that long-term equity investments investment
properties measured by the cost model fixed assets construction in progress right-of-use assets and intangible assets with a
definite service life may have impairment. If there are indications of impairment of such assets the recoverable amount shall be
estimated. Intangible assets with indefinite service life and intangible assets that have not yet reached a usable state are subject to
impairment testing every year regardless of whether there are indications of impairment.The recoverable amount of the estimated 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 shall be determined on the basis of the asset group to which the asset
belongs. The recoverable amount is the higher of the net amount obtained by deducting the disposal expenses from the fair value
of an asset or an asset group and the present value of its expected future cash flows.If the recoverable amount of the asset is lower than its book value the provision for asset impairment shall be made at the
difference and included in the current profit or loss.The goodwill shall be tested for impairment at least at the end of each year. The impairment test of goodwill shall be carried
out in combination with the asset group or combination of asset groups related to it. That is from the acquisition date the book
value of goodwill shall be allocated using a reasonable method to the asset group or portfolio of asset groups that benefit from the
synergies of the business combination. If the recoverable amount of the asset group or group of asset groups including the
allocated goodwill is lower than its book value the corresponding impairment losses shall be recognized. Amount of impairment
losses shall be firstly used to deduct the book value of goodwill allocated to the asset group or portfolio of asset groups and then
deduct book value of other assets according to the proportion of the book values of other assets (except for goodwill) in the asset
group or portfolio of asset groups.The above losses from assets impairment will not be reversed in subsequent accounting periods once recognized.
24. Long-term deferred expenses
Long-term deferred expenses refer to the expenses which have been already incurred but will be borne in the current period
and in the future with an amortization period of over 1 year. Long-term deferred expenses are amortized evenly over the expected
benefit period.
25. Contract liabilities
Contract 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 contract liabilities under the same contract are presented by their net amounts.
39Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
26. Employee compensation
(1) Accounting treatments of short-term compensation
During the accounting period when employees provide services for the Group the Group recognizes the short-term
compensation actually incurred as liabilities and includes it in the current profit or loss or related asset costs. The employee
welfare expenses incurred by the Group shall be included in the current profit or loss or related asset costs according to the actual
amount incurred. If the employee benefits are non-monetary benefits they shall be measured at fair value.For the medical insurance premiums work-related injury insurance premiums maternity insurance premiums and other social
insurance premiums and housing provident funds paid by the Group for employees as well as the labor union funds and employee
education expenses withdrawn by the Group in accordance with the provisions the corresponding employee compensation amount
shall be calculated and determined according to the prescribed accrual basis and accrual ratio during the accounting period when
employees provide services for the Group and the corresponding liabilities shall be recognized and included in the current profit
or loss or related asset costs.
(2) Accounting treatments of post-employment benefits
Post-employment benefits are all defined contribution plans.During the accounting period when employees provide services for the Group the Group recognizes the amount payable
calculated according to the defined contribution plans as a liability and includes it in the current profit or loss or related asset costs.
(3) Accounting treatments of dismissal benefits
When the Group provides dismissal benefits to employees the employee compensation liability arising from the dismissal
benefits shall be recognized at the earlier of the following dates and included in the current profit or loss: when the Group cannot
unilaterally withdraw the dismissal benefits provided due to the termination of labor relationship plan or the layoff proposal; When
the Group recognizes the costs or expenses related to the restructuring involving the payment of dismissal benefits.
27. Estimated liabilities
When the obligation related to the contingency such as product quality guarantee is a current obligation of the Group and the
performance of such obligation is likely to result in the outflow of economic benefits and the amount of such obligation can be
measured reliably it is recognized as estimated liabilities.On the balance sheet date by considering the risks uncertainty and time value of money and other factors related to
contingency the estimated liabilities will be measured according to the best estimate of the required expenditures for performace
of relevant present obligation. If the time value of money is significant the best estimate shall be determined by the amount
discounted by the estimated future cash flows.
28. Revenue
28.1 Accounting policies adopted for revenue recognition and measurement disclosed by business type
40Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
When the Group has fulfilled its performance obligations under the contract that is when the customer obtains right of
control of the relevant goods or services the revenue is recognized based on the transaction prices allocated to the specific
performance obligation. Performance obligations refer to the contractual commitments in which the Group transfers clearly
distinguishable goods or services to the customers.The Group evaluates the contract on the contract commencement date identifies each individual performance obligation
contained in the contract and determines whether each individual performance obligation is performed within a certain period of
time or at a certain point in time. If one of the following conditions is met it is a performance obligation performed within a
certain period of time and the Group recognizes revenue within a certain period of time according to the performance progress: (1)
the customer obtains and consumes the economic benefits brought by the Group at the same time as the Group performs the
contract; (2) The customer is able to control the goods under construction in the course of the Group's performance; (3) The goods
produced during the performance of the Group have irreplaceable uses and the Group has the right to receive payment for the
performance accumulated to date throughout the contract period. Otherwise the Group recognizes the revenue at the point when
the customer obtains the right of control of the relevant goods or services.For goods sold to customers the Group recognizes revenue when the right of 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. For property service the Group
recognizes revenue in the course of providing property service.Transaction prices refer to the amount of consideration that the Group is expected to be entitled to receive as a result of the
transfer of goods or services to customers but does not include the amount received on behalf of third parties and the amount
expected to be returned to customers by the Group. When determining the transaction prices the Group considers the impact of
variable consideration significant financing components in the contract non-cash consideration consideration payable to
customers and other factors.If the contract contains two or more performance obligations the Group shall on the commencement date of the contract
allocate the transaction prices to each individual performance obligation according to the relative ratio of the individual selling
price of the goods or services promised by each individual performance obligation. However if there is conclusive evidence that
the contractual discount or variable consideration is only related to one or more (but not all) performance obligations in the
contract the Group shall allocate the contractual discount or variable consideration to the relevant one or more performance
obligations. Individual selling price refers to the price at which the Group sells goods or services to customers separately. If the
individual selling price cannot be directly observed the Group will comprehensively consider all the information that can be
reasonably obtained and estimate the individual selling price by maximizing the use of observable input value.For sales with sales return clauses the Group recognizes revenue at the amount of consideration expected to be entitled to
receive due to the transfer of goods to the customer (i.e. excluding the amount expected to be returned due to sales return) when
the customer obtains the relevant control over goods and recognizes liabilities at the amount expected to be returned due to sales
return; At the same time the balance of the book value of the expected goods to be returned at the time of transfer after deducting
the expected cost of recovering the goods (including the impairment of the value of the returned goods) is recognized as an asset.The net amount after deducting the cost of the above asset will be transferred as cost based on the book value of the transferred
goods.For sales with quality assurance clauses if the quality assurance provides a separate service in addition to assuring the
customer that the goods or services sold meet the established standards the quality assurance constitutes a single performance
41Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
obligation. Otherwise the Group shall conduct accounting treatment for the quality assurance liability in accordance with the
Accounting Standards for Business Enterprises No. 13 - Contingencies.The Group determines whether it is the principal or the agent when engaging in transactions based on whether it has the right
of control over the goods or services before transferring them to the customer. If the Group can control the goods or services
before transferring them to the customer the Group is the main responsible person and recognizes the revenue according to the
total consideration received or receivable; Otherwise the Group is an agent and recognizes revenue based on the expected
commissions or service fee it is entitled to receive. This amount is determined by subtracting the price payable to other related
parties from the total consideration received or receivable.If the Group receives payment in advance from customers for sales of goods or services the payment is first recognized as a
liability and then transferred to revenue when the relevant performance obligations are fulfilled. When the Group's advances from
customers do not need to be returned and the customer may waive all or part of its contractual rights the Group expects to be
entitled to the amount related to the contractual rights waived by the customer and recognizes the above amount as revenue in
ratio according to the mode of the customer's exercise of contractual rights; Otherwise the Group will only transfer the relevant
balance of the above-mentioned liabilities to revenue when it is highly unlikely that the customer will request the fulfillment of the
remaining performance obligations.
29. Government subsidies
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Group from the government for
free. Government subsidies are recognized when they can meet the conditions attached to government subsidies and can be
received.The government subsidies considered as monetary assets are measured at the amount received or receivable.
29.1 Judgment basis and accounting treatments for government subsidies related to assets
The subsidies fro production line and equipment in the Group's government subsidies can form long-term assets so such
government subsidies are asset-related government subsidies.Government subsidies related to assets are recognized as deferred income and included in the current profit or loss by stages
according to the straight-line method within the service life of the relevant assets.
29.2 Judgment basis and accounting treatments for government subsidies related to income
The industry development support funds and enterprise development support funds in the Group's government subsidies
cannot form long-term assets so such government subsidies are income-related government subsidies.Income-related government subsidies used to compensate for relevant costs and losses in subsequent periods are recognized
as deferred income and included in the current profit or loss in the period when the relevant costs or expenses are recognized; If it
is used to compensate the relevant costs and losses incurred it shall be directly included in the current profit or loss.Government subsidies related to the daily activities of the Group are included in other income according to the essence of
economic business. Government subsidies unrelated to the daily activities of the Group are included in the non-operating revenue.
42Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
When the recognized government subsidies need to be returned if there is relevant deferred income balance the book balance
of relevant deferred income shall be offset and the excess shall be included in the current profit or loss; If there is no relevant
deferred income it shall be directly included in the current profit or loss.
30. Deferred tax assets/deferred tax liabilities
Income tax expenses include current income tax and deferred income tax.
30.1 Current income tax
On the balance sheet date the current income tax liabilities (or assets) formed in the current and prior periods are measured at
the expected income tax payable (or refundable) calculated in accordance with the tax law.
30.2 Deferred tax assets and deferred tax liabilities
For the difference between the book value of certain assets and liabilities and their tax bases and the temporary differences
arising from the difference between the book value and tax base of items that are not recognized as assets and liabilities but whose
tax bases can be determined in accordance with the tax law the balance sheet liability method is adopted to recognize deferred tax
assets and deferred tax liabilities.In general the relevant deferred income taxes are recognized for all temporary differences. However for deductible
temporary differences the Group recognizes the relevant deferred tax assets to the extent of the taxable income that is likely to be
obtained to offset the deductible temporary differences. In addition deferred tax assets or liabilities are not recognized for
temporary differences associated with the initial recognition of goodwill and with the initial recognition of assets or liabilities
arising from transactions that are neither business combinations nor affect accounting profit or taxable income (or deductible
losses) and do not result in equal taxable temporary differences and deductible temporary differences.For deductible loss and tax credits that can be carried forward to subsequent years the corresponding deferred tax assets
arising therefrom are recognized to the extent that future taxable income will be probable to be available against deductible losses
and tax credits.The Group recognizes deferred tax liabilities arising from taxable temporary differences associated with subsidiaries
associates and investments in joint ventures unless the Group is able to control the timing of the reversal of the temporary
differences and it is probable that the temporary differences will not be reversed in the foreseeable future. For deductible
temporary differences related to subsidiaries associates and investments in joint ventures the Group recognizes deferred tax assets
only if it is probable that the temporary differences will reverse in the foreseeable future and it is probable that taxable income will
be available to offset the deductible temporary differences in the future.On the balance sheet date deferred tax assets and deferred tax liabilities should be measured at the applicable tax rate during
the period of expected recovery of the relevant assets or liquidation of the relevant assets according to the provisions of tax laws.Except for the current income tax and deferred income taxes related to transactions and events directly included in other
comprehensive income or shareholders' equity which are included in other comprehensive income or shareholders' equity and the
book value of deferred income taxes arising from business combination to adjust goodwill the remaining current income tax and
deferred income tax expenses or income are included in the current profit or loss.
43Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
On the balance sheet date the book value of the deferred tax assets shall be reviewed. If it is likely that sufficient taxable
income will not be available in the future to offset the benefits of the deferred tax assets the book value of the deferred tax assets
shall be written down. When it is likely to earn sufficient taxable income the written down amount is reversed.
30.3 Offset of income tax
When the Group has a legal right to settle on a net basis and intends to settle with net amount or acquire assets and pay off
liabilities simultaneously the Group reports the net amount of current income tax assets and current tax liabilities after offsetting.When the Group has the legal right to settle current income tax assets and current income tax liabilities on a net basis and the
deferred tax assets and deferred tax liabilities are related to the income tax levied by the same tax collection authority on the same
taxpayer or on different taxpayers but in each important future period of reversal of deferred tax assets and liabilities the involved
taxpayer intends to settle current income tax assets and liabilities on a net basis or to obtain assets and settle liabilities at the same
time the deferred tax assets and deferred tax liabilities of the Group are presented at the net amount after offset.
31. Lease
31.1 Accounting treatments for leases in which the Company is the lessee
Leases refers to a contract in which the lessor transfers the right of use of the asset to the lessee for consideration within a
certain period of time.At the commencement date of the contract the Group assesses whether the contract is a lease contract or contains a lease.Unless the terms and conditions of the contract change the Group does not reassess whether the contract is a lease contract or
contains a lease.
31.1.1 Spin-off of the lease
When a contract contains one or more lease and non-lease parts the Group will split the individual lease and non-lease parts
and allocate the contract consideration according to the relative ratio of the sum of the individual price of each lease part and the
individual price of the non-lease part.
31.1.2 Right-of-use assets
Except for short-term leases the Group recognizes the right-of-use assets of the lease on the lease commencement date. The
lease commencement date refers to the starting date when the lessor provides the leased assets for use by the Group. Right-of-use
assets are initially measured at cost. The cost includes:
* The initial measurement amount of the lease liabilities;
* The lease payments made on or before the lease commencement date or the relevant amount after deducting the lease
incentive already enjoyed if any;
* Initial direct costs incurred by the Group;
* The cost expected to be incurred by the Group for dismantling and removing the leased assets restoring the site where
the leased assets are located or restoring the leased assets to the condition agreed in the lease terms.
44Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
The Group depreciates the right-of-use assets with reference to the relevant depreciation provisions of the Accounting
Standards for Business Enterprises No. 4 - Fixed Assets. If the Group can reasonably determine that the ownership of leased assets
will be obtained at the expiration of the lease term the right-of-use assets shall be depreciated within the remaining service life of
the leased assets. If it is not reasonably certain that ownership of leased assets will be obtained at the expiration of the lease term
the depreciation shall be accrued during the shorter of the lease term and remaining service life leased assets.The Group determines whether the right-of-use assets have been impaired in accordance with the provisions of the
Accounting Standards for Business Enterprises No. 8 - Assets Impairment and performs accounting treatment on the identified
impairment losses.
31.1.3 Lease liabilities
Except for short-term leases the Group makes initial measurement of the lease liabilities on the lease commencement date
according to the present value of the lease payments that have not been paid on that date. When calculating the present value of
lease payments the Group uses the interest rate implicit in lease as the discount rate and if the interest rate implicit in lease cannot
be determined the incremental borrowing rate is used as the discount rate.Lease payments refer to the payments made by the Group to the lessor in connection with the right to use the leased assets
during the lease term including:
* For fixed payment amount and substantial fixed payment amount if there is a lease incentive the relevant amount of
the lease incentive shall be deducted;
* Variable lease payments depending on an index or ratio;
* The Group reasonably determines the exercise price of the purchase option to be exercised;
* If lease term reflects the amount needs to be paid the Group will exercise the option to terminate the lease;
* The amount expected to be paid based on the residual value of the guarantee provided by the Group.After the lease commencement date the Group calculates the interest expenses of the lease liabilities for each period of the
lease term at a fixed cyclical interest rate and includes it in the current profit or loss or related asset costs.After the lease commencement date if any of the following circumstances occurs the Group shall remeasure the lease
liabilities and adjust the corresponding right-of-use assets. If the book value of the right-of-use assets has been reduced to zero but
the lease liabilities still needs to be further reduced the Group shall include the difference in the current profit or loss:
* If the lease term or the evaluation result of the purchase option changes the Group shall re-measure the lease liabilities
based on the present value of the changed lease payments and the revised discount rate;
* If there is a change in the estimated amount payable of the residual value of the guarantee or the index or ratio used to
determine the lease payments the Group remeasures the lease liabilities based on the present value of the changed lease
payment and the original discount rate.
31.1.4 As the basis for judgment and accounting treatments for the simplified treatment of short-term leases by the lessee
The Group chooses not to recognize right-of-use assets and lease liabilities for short-term leases of some plants and some
leased warehouses. Short-term lease refers to a lease that lasts for no more than 12 months and includes no purchase options at the
45Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
lease commencement date. The Group includes the lease payments of short-term leases in the current profit or loss or related asset
costs according to the straight-line method in each period of the lease term.
31.1.5 Lease modification
If the lease is modified and the following conditions are met at the same time the Group will account for the lease
modification as a separate lease:
* * The lease modification expands the scope of the lease by adding one or more right of use of the leased assets;
* * The increased consideration is equivalent to the individual price of the expanded part adjusted according to the
contract.If the lease modification is not accounted for as a separate lease on the effective date of the lease modification the Group re-
apportions the consideration of the modified contract re-determines the lease term and re-measures the lease liabilities at the
present value calculated according to the modified lease payments and the revised discount rate.If the lease modification results in a reduction in the scope of the lease or the lease term the Group shall reduce the book
value of the right-of-use assets accordingly and include the relevant gains or losses of partial or complete termination of leases
into the current profit or loss. If the lease liabilities are remeasured due to other lease modification the Group shall adjust the book
value of the right-of-use assets accordingly.
31.2 Accounting treatments for leases in which the Company is the lessor
31.2.1 Spin-off of the lease
If the contract contains both the lease and non-lease parts the Group shall allocate the contract consideration according to the
provisions of the revenue standards on the allocation of transaction prices and the basis of allocation shall be the separate price of
the lease part and the non-lease part.
31.2.2 Classification criteria and accounting treatments as a lessor
Leases that substantially transfer substantially all of the risks and rewards associated with the ownership of leased assets are
financing leases Leases other than financing lease are operating leases.
31.2.2.1 The Group records operating leases as a lessor
During each period of the lease term the Group recognizes the lease receipts of operating leases as rental income by using the
straight-line method. The initial direct costs incurred by the Group in connection with operating leases are capitalized when
incurred amortized on the same basis as rental income recognition during the lease term and included in the current profit or loss
in installments.The variable lease receipts related to operating leases acquired by the Group and not included in the lease receipts are
included in the current profit or loss when actually incurred.
31.2.3 Lease modification
46Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
If the operating lease is changed the Group will account for it as a new lease from the effective date of the change and the
advance or receivable lease receipts related to the lease before the change will be regarded as the receipt amount of the new lease.
32. Major changes in accounting policies and accounting estimates
(1) Major changes in accounting policies
□ Applicable□Not Applicable
(2) Major changes in accounting estimates
□ Applicable□Not Applicable
(3) Adjustments of relevant items of financial statements at the beginning of the year in the year of initial implementation
of new accounting standards from 2025
□ Applicable□Not Applicable
VI. Taxation
1..Main tax types and tax rates
Tax type Tax basis Tax rate
The output tax for domestic sales is
Balance of output tax minus deductible
calculated at 13% 9% 6% and 5% of
input tax; Tax exemption offset and
Value-added tax the sales amount according to relevant
refund measures are applicable to the
tax regulations and the export product
sales of export products
tax rebate rate is 13%
Urban maintenance and construction tax Turnover tax payable 7%
Corporate income tax Taxable income 25%、20%、15%、8.25%
Education surcharge Turnover tax payable 3%
Local education surtax Turnover tax payable 2%
The residual value after deducting 30%
Property taxes from the original value of the property at 1.2%
once
If there are taxpayers with different corporate income tax rates please disclose with an explanation
Name of taxpayer Income tax rate
The Company 25%
Shenzhen Shenfang Property Management Co. Ltd. 20% (Note 1)
Shenzhen Meibainian Garment Co. Ltd. 20% (Note 1)
Shenzhen Lisi Industrial Development Co. Ltd. 20% (Note 1)
Shenzhen Shenfang Sungang Property Management Co. Ltd. 20% (Note 1)
Shenzhen Huaqiang Hotel Co. Ltd. 20% (Note 1)
SATO (Hong Kong) Limited 8.25% (Note 2)
Shenzhen SAPO Photoelectric Co. Ltd. (hereinafter referred to
15% (Note 3)
as "SAPO Photoelectric")
47Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
2.Tax incentives
(1)SAPO Photoelectric a subsidiary of the Company was jointly recognized as a high-tech enterprise in 2022 by Shenzhen
Science and Technology Innovation Commission Shenzhen Municipal Finance Bureau and Shenzhen Municipal Taxation Bureau
of the State Administration of Taxation. The certification is valid for 3 years and the certificate number is GR202244204504.Since SAPO Photoelectric was recognized as a high-tech enterprise it is eligible for the tax incentives for high-tech enterprises for
three years. After filing with the competent tax bureau SAPO Photoelectric has paid corporate income tax at a tax rate of 15%.
(2)The Company's subsidiaries Shenzhen Meibainian Garment Co. Ltd. Shenzhen Lisi Industrial Development Co. Ltd.
Shenzhen Shenfang Sungang Property Management Co. Ltd. and Shenzhen Shenfang Property Management Co.Ltd. are qualified
small low-profit enterprises. According to the Announcement of the Ministry of Finance and the State Taxation Administration on
Further Implementing Preferential Policies for Corporate Income Tax of Small and Micro Enterprises (No. 13 2022) and the
Announcement of the Ministry of Finance and the State Taxation Administration on Preferential Policies for Corporate Income
Tax of Small and Micro Enterprises and Individual Industrial and Commercial Households (No. 6 2023) the part of the annual
taxable income not exceeding RMB 3 million will be included in the taxable income after deducting 25% and corporate income
tax will be paid at a tax rate of 20%.
(3) According to the relevant provisions of the Notice of the Ministry of Finance the General Administration of Customs and
the State Taxation Administration on the Import Tax Policies for Supporting the Development of the New Display Device Industry
(CGS [2021] No. 19) SAPO Photoelectric a subsidiary of the Company meets the relevant conditions and will enjoy the policy
of exemption from import duties on relevant products from January 1 2021 to December 31 2030.
(4) According to the Announcement on the Policy of Additional Value-Added Tax Deduction for Advanced Manufacturing
Enterprises (CZBSWZJGG [2023] No.43) issued by the Ministry of Finance and the State Taxation Administration in September
2023 from January 1 2023 to December 31 2027 advanced manufacturing enterprises are allowed to deduct the value-added tax
payable by 5% of the deductible input tax for the current period. SAPO Photoelectric a subsidiary of the Company meets the
relevant conditions and enjoyed the policy of additional deduction of value-added tax (VAT) in 2025.
3. Others
Note 1: See Note VI. 2 for details.Note 2: according to the Inland Revenue Ordinance of Hong Kong SATO (Hong Kong) Limited is subject to a two-tier
profits tax system. The first HKD 2 million of taxable profits shall taxed at a rate of 8.25% and the profits generated thereafter
shall be taxed at a rate of 16.5%.Note 3: See Note VI. 2 for details.VII. Notes to items in consolidated financial statements
1. Monetary funds
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 9250.78 4751.69
48Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Bank deposits 577793873.61 302111853.17
Other monetary funds 5505858.22 38844838.96
Total 583308982.61 340961443.82
Including: total amount deposited
0.000.00
abroad
Other explanations
(1)At the end of the reporting period the bank deposits included interest on current deposits and seven-day notice deposits of
RMB579003.23 (December 31 2024: RMB31765.51).
(2)At the end of the reporting period the Group's other monetary funds included RMB3401500.00 (December 31 2024:
RMB 3401500.00) restricted in use due to account freezing and RMB2104358.22 (December 31 2024: RMB35443338.96)
deposits for bills and letters of credit.
2. Financial assets held for trading
Unit: RMB
Item Ending balance Beginning balance
Financial assets measured at fair value
714772329.76731419904.42
through current profit or loss
Including:
Monetary funds and bank wealth
714772329.76731419904.42
management
Total 714772329.76 731419904.42
3. Notes receivable
(1) Presentation of notes receivable by category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bills 20078297.52 47305221.88
Total 20078297.52 47305221.88
(2) Disclosure by provision method for bad debts
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Type Book Book
Provision Provision
Amount Ratio Amount value Amount Ratio Amount value
ratio ratio
Notes
receivable
with
provision
for bad
debts on
an
individual
basis
49Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Notes
receivable
with
provision 2007829 2007829 4730522 4730522
100.00%0.000.00%100.00%0.000.00%
for bad 7.52 7.52 1.88 1.88
debts on a
combinati
on basis
Includin
g:
Bank
2007829200782947305224730522
acceptance 100.00% 0.00 0.00% 100.00% 0.00 0.00%
7.527.521.881.88
bills
2007829200782947305224730522
Total 100.00% 0.00 0.00% 100.00% 0.00 0.00%
7.527.521.881.88
(3) Provision for bad debts accrued recovered or reversed for the current period
Provision for bad debts for the current period: None
（4） The Company's pledged notes receivable at the end of the period
None
(5) Notes receivable endorsed or discounted by the Company and not yet due on the balance sheet date at
the end of the period
Unit: RMB
Item Ending derecognized amount Ending un-derecognized amount
Bank acceptance bills 0.00 17257688.89
Total 0.00 17257688.89
(6) Actual write-off of notes receivable for the current period
During the reporting period the Group had no actual write-off of notes receivable.
4. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 837979457.56 888265598.53
1-2 years 27650.08 368365.12
2 to 3 years 213611.89 0.00
Over 3 years 13553323.75 13565696.79
3 - 4 years 557569.04 627140.10
4 to 5 years 67250.00 0.00
50Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Over 5 years 12928504.71 12938556.69
Total 851774043.28 902199660.44
(2) Disclosure by provision method for bad debts
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Type Book Book
Provision
Amount Ratio Amount value
Provision
Amount Ratio Amount value
ratio ratio
Accounts
receivable
with
provision
264121818006068406118.356228217870011775281
for bad 3.10% 68.17% 3.95% 50.16%
3.054.49569.918.371.54
debts on
an
individual
basis
Accounts
receivable
with
provision 8253618 1964662 8057152 8665768 2059770 8459791
96.90%96.05%
for bad 60.23 5.37 34.86 30.53 5.18 25.35
debts on a
combinati
on basis
Includin
g:
Combinati 8101533 1920063 7909527 8547820 2033834 8344437
95.11%2.37%94.74%2.38%
on 1 62.27 4.71 27.56 67.66 0.21 27.45
Combinati 1520849 445990.6 1476250 1179476 259364.9 1153539
1.79%2.93%1.31%2.20%
on 2 7.96 6 7.30 2.87 7 7.90
851774037652688141213902199638467728637319
Total 100.00% 100.00%
43.289.8653.4260.443.5536.89
Name of category of provision for bad debts on an individual basis:
Unit: RMB
Beginning balance Ending balance
Name Provision for Provision for bad Provision Reasons for
Book balance Book balance
bad debts debts ratio provision
Customer Expected credit
16930591.303386118.268715843.973050545.3935.00%
1 losses
Customer Expected credit
4246066.34849213.272198825.62769588.9735.00%
2 losses
Customer Impairment loss
2797016.812797016.812797016.812797016.81100.00%
3 incurred
Customer Impairment loss
1698550.931698550.931694655.011694655.01100.00%
4 incurred
Customer Impairment loss
1298965.361298965.361298965.361298965.36100.00%
5 incurred
Expected credit
Others 8651639.17 7840153.74 9706876.28 8395292.95 86.49%
losses
51Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Total 35622829.91 17870018.37 26412183.05 18006064.49
Name of category of provision for bad debts on a combination basis:
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Provision ratio
Not overdue 768521479.17 17660680.82 2.30%
Overdue within 30 days 41170544.76 1276379.03 3.10%
30-90 days overdue 365687.28 167923.80 45.92%
Over 90 days overdue 95651.06 95651.06 100.00%
Total 810153362.27 19200634.71
Explanation on the basis for determining the combination:
Based on the industry nature and credit status of customers the degree of credit risk varies with the number of days overdue so
different credit loss rates are adopted for customers with different days overdue.Name of category of provision for bad debts on a combination basis:
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Provision ratio
Within 1 year 13718830.86 287089.42 2.09%
1-2 years 921495.01 28474.20 3.09%
2-3 years 500922.09 63177.04 12.61%
Over 3 years 67250.00 67250.00 100.00%
Total 15208497.96 445990.66
Explanation on the basis for determining the combination:
Group customers other than SAPO Photoelectric are mainly leasing customers and the provision for credit impairment is made
according to the aging method combination.If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses:
□ Applicable□Not Applicable
(3) Provision for bad debts accrued recovered or reversed for the current period
Provision for bad debts for the current period:
Unit: RMB
Changes in the current period
Beginning
Type
balance Recovery or
Ending balance
Provision Write-off Others
reversal
Provision for
38467723.5523869262.30-24684295.990.000.0037652689.86
bad debts
Total 38467723.55 23869262.30 -24684295.99 0.00 0.00 37652689.86
Significant amounts of recovered or reversed provision for bad debts for the current period:
There was no significant amount of provision for bad debts recovered or reversed during the reporting period.
52Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(4).Actual write-off of accounts receivable for the current period
There were no accounts receivable with actual write-off during the reporting period.
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract assets
Unit: RMB
Ending balance of
Ratio to the total
provision for bad
Ending balances of amount of ending
Ending balance of debts of accounts
Ending balance of accounts balance of
Entity name accounts receivable and
contract assets receivable and accounts
receivable provision for
contract assets receivable and
impairment of
contract assets (%)
contract assets
Customer 1 118451196.87 0.00 118451196.87 13.91% 2807293.37
Customer 2 111563314.66 0.00 111563314.66 13.10% 2644050.56
Customer 3 102390537.06 0.00 102390537.06 12.02% 2426655.73
Customer 4 79054687.27 0.00 79054687.27 9.28% 1873596.09
Customer 5 78174044.50 0.00 78174044.50 9.18% 1852724.85
Total 489633780.36 0.00 489633780.36 57.49% 11604320.60
5. Receivables financing
(1) Presentation of receivables financing by category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bills 8286636.78 6804603.68
Total 8286636.78 6804603.68
(2) Disclosure by provision method for bad debts
None
The provision for bad debts made according to the general model of expected credit losses
None
Basis for division of each stage and ratio of provision for bad debts
None
Explanation on significant changes in the book balance of receivables financing due to changes in provision for loss for the current
period:
None
(3) Provision for bad debts accrued recovered or reversed for the current period
None
53Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(4) The Company's pledged receivables financing at the end of the period
None
(5) Receivables financing endorsed or discounted by the Company and not yet due on the balance sheet
date at the end of the period
Unit: RMB
Item Ending derecognized amount Ending un-derecognized amount
Bank acceptance bills 71551474.82 0.00
Total 71551474.82 0.00
(6) Actual write-off of receivables financing for the current period
During the reporting period the Company had no receivables financing with actual write-off.
(7) Increases/decreases and fair value changes of receivables financing for the current period
None
(8) Other explanations
None
6. Other receivables
Unit: RMB
Item Ending balance Beginning balance
Interest receivable 0.00 0.00
Dividends receivable 0.00 0.00
Other receivables 3133087.51 3596543.96
Total 3133087.51 3596543.96
(1) Interest receivable
1) Classification of interest receivable
None
2) Significant overdue interest
None
3) Disclosure by provision method for bad debts
□ Applicable□Not Applicable
54Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
4) Provision for bad debts accrued recovered or reversed for the current period
None
5) Actual write-off of interest receivable for the current period
None
(2) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Project (or investees) Ending balance Beginning balance
Total 0.00 0.00
2) Significant dividends receivable with aging over 1 year
None
3) Disclosure by provision method for bad debts
□ Applicable□Not Applicable
4) Provision for bad debts accrued recovered or reversed for the current period
None
5) Actual write-off of dividends receivable in the current period
None
(3) Other receivables
1) Classification of other receivables by nature of payment
Unit: RMB
Nature of payment Ending book balance Beginning book balance
Guarantee and deposits 2521031.14 2523551.88
Transactions between entities (non-
14872685.9715422685.97
related parties)
Export tax rebate 709028.48 709028.48
Petty cash and employee borrowings 458270.97 296058.95
Others 2556279.05 2629420.74
Total 21117295.61 21580746.02
55Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
2) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 2029273.06 2878553.22
1-2 years 491071.32 227729.90
2 to 3 years 161860.48 37922.15
Over 3 years 18435090.75 18436540.75
3 - 4 years 93562.29 620212.30
4 to 5 years 545200.01 24725.95
Over 5 years 17796328.45 17791602.50
Total 21117295.61 21580746.02
3) Disclosure by provision method for bad debts
□Applicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Type debts Book debts Book
Provisio value Provisio value
Amount Ratio Amount Amount Ratio Amount
n ratio n ratio
Provisio
n for bad
debts
accrued
on an
individu
al basis
Provisio
n for bad
211172179842313308215807179842359654
debts 100.00% 85.16% 100.00% 83.33%
95.6108.107.5146.0202.063.96
made by
portfolio
Including:
Other
receivab
les with
provisio
n for bad
debts
211172179842313308215807179842359654
based on 100.00% 85.16% 100.00% 83.33%
95.6108.107.5146.0202.063.96
credit
risk
characte
ristics
combina
tion
211172179842313308215807179842359654
Total 100.00% 85.16% 100.00% 83.33%
95.6108.107.5146.0202.063.96
56Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Name of category of provision for bad debts on a combination basis:
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Provision ratio
Other receivables with
provision for bad debts based
21117295.6117984208.1085.16%
on credit risk characteristics
combination
Total 21117295.61 17984208.10
Explanation on the basis for determining the combination:
Determined based on aging and customer credit risk.The provision for bad debts made according to the general model of expected credit losses
Unit: RMB
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Provision for bad debts Expected credit losses throughout the duration throughout the duration Total
over the next 12
(without credit (with credit
months
impairment) impairment)
Balance as of January
146991.5039206.7817798003.7817984202.06
12025
Balance as at January
1 2025 forwarded to
the current period
- Transfer to phase II -50405.07 50405.07 0.00 0.00
-Transfer to phase III 0.00 -9859.07 9859.07 0.00
- Reversal to phase II 0.00 0.00 0.00 0.00
- Reversal to phase I 0.00 0.00 0.00 0.00
Provision for the
50075.5554529.529859.07114464.14
current period
Reversal in this period -113816.10 0.00 -642.00 -114458.10
Charge-off in the 0.00 0.00 0.00 0.00
current period
Write-off in the current 0.00 0.00 0.00 0.00
period
Other changes 0.00 0.00 0.00 0.00
Balance as of June 30
32845.88134282.3017817079.9217984208.10
2025
Basis for division of each stage and ratio of provision for bad debts
Changes in the book balance of provision for loss with significant changes in the current period
□ Applicable□Not Applicable
4) Provision for bad debts accrued recovered or reversed in the current period
Provision for bad debts for the current period:
Unit: RMB
57Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Changes in the current period
Beginning
Type Recovery or Resale or Ending balancebalance Provision Others
reversal write-off
Provision for bad
debts made by 17984202.06 114464.14 -114458.10 0.00 0.00 17984208.10
portfolio
Total 17984202.06 114464.14 -114458.10 0.00 0.00 17984208.10
Reversal or recovery of significant amount of provision for bad debts in the current period:
There was no provision for bad debts recovery or reversal of significant amount during the reporting period.
5) Other receivables actually write-off in the current period
There was no other receivables with actual write-off during the reporting period.
6) Other receivables of the top five ending balances collected by debtor
Unit: RMB
Balance of
Ratio to the total
provision for bad
Entity name Nature of amount Ending balance Aging ending balance of
debts as at the end
other receivables
of the period
Total amount of the
top five other
Current accounts of
receivables at the end 15896829.51 Over 5 years 75.28% 15896829.51
receivables etc.of the reporting
period
Total 15896829.51 75.28% 15896829.51
7) Reported as other receivables due to centralized fund management
None
7. Advances to suppliers
(1) Advances to suppliers are listed by aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Ratio Amount Ratio
Within 1 year 21376820.24 93.57% 7233035.70 88.46%
1-2 years 558935.06 2.45% 873375.47 10.68%
2 to 3 years 839375.47 3.67% 8227.73 0.10%
Over 3 years 70145.61 0.31% 62085.80 0.76%
Total 22845276.38 8176724.70
At the end of the reporting period the Group had no significant prepayments with an aging of more than 1 year and an
important amount.
58Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(2) Prepayment status of the top five year-end balances collected by prepaid objects
The total amount of the top five prepayments categorized by prepayment objects at the end of the reporting period was
RMB17505495.23 accounting for 76.63% of the balance of prepayments at the end of the reporting period.
8. Inventories
Whether the company needs to comply with the disclosure requirements of the real estate industry
No
(1) Inventories Classification
Unit: RMB
Ending balance Beginning balance
Provision for Provision for
inventory inventory
Item depreciation or depreciation or
Book balance provision for Book value Book balance provision for Book value
impairment of impairment of
contract contract
performance costs performance costs
Raw materials 435300213.26 46813796.99 388486416.27 453134126.81 14875137.34 438258989.47
Products in
331787770.7239062831.06292724939.66335115507.5366220022.55268895484.98
progress
Inventories of
140520034.5827199167.98113320866.60121746047.8540357658.5981388389.26
goods
Entrusted
processing 17025901.98 1543891.30 15482010.68 1710557.68 496720.51 1213837.17
materials
Total 924633920.54 114619687.33 810014233.21 911706239.87 121949538.99 789756700.88
(2) Data resources recognized as inventories
None
(3) Provision for inventory depreciation and provision for impairment of contract performance costs
Unit: RMB
Increase in the current period Decrease in the current period
Beginning
Item Reversal or write- Ending balancebalance Provision Others Others
off
Raw materials 14875137.34 32121812.41 0.00 183152.76 0.00 46813796.99
Products in 0.00 0.00
66220022.5513844682.8441001874.3339062831.06
progress
Inventories of 0.00 0.00
40357658.5930248629.2343407119.8427199167.98
goods
Entrusted 0.00 0.00
processing 496720.51 1047170.79 0.00 1543891.30
materials
Total 121949538.99 77262295.27 0.00 84592146.93 0.00 114619687.33
59Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Reasons for reversing or
Item Specific basis for determining net realizable value writing off for inventorydepreciation in the current
period
The net realizable value is determined by the
Raw materials goods in process and estimated selling price of the relevant finished
consigned processing materials products minus the estimated cost to be incurred until
Received or sold in the
completion estimated selling and distribution current period
expenses and relevant taxes.The net realizable value is determined by the It is sold or market value is
Finished products estimated selling price of the inventories minus theestimated selling and distribution expenses and related recovered in the current
taxes. period
(4) Explanation on the ending balance of inventories containing the capitalization amount of borrowing
costs
At the end of the reporting period there was no amount in the balance of inventories used for guarantee and no amount of
capitalization of borrowing costs.
(5) Explanation on the amortization amount of contract performance costs in the current period
None
9. Other current assets
Unit: RMB
Item Ending balance Beginning balance
Cost of return receivable 12132397.12 19314386.69
Value-added tax to be deducted and
21044708.132100314.86
input tax to be certified
Prepaid income tax 47034.59 47034.59
Total 33224139.84 21461736.14
10. Other equity instrument investments
Unit: RMB
Reasons
Gains Losses
Gains accrued Loss accrued designated as
accumulated accumulated Dividend
to other to other being
into other into other income
Beginning comprehensiv comprehensiv Ending measured at
Project comprehensiv comprehensiv recognized
balance e income in e income in balance fair value
e income at e income at during the
the current the current through other
the end of the the end of the current period
period period comprehensiv
current period current period
e income
The Group
Hualian
129884000. 127284000. 129884000. plans to hold
Development 0.00 0.00 0.00 0.00
00 00 00 it for a long
Co. Ltd.time
Shenzhen 19642900.0 17083043.7 19642900.0 The Group
0.000.000.00550000.00
Dailisi 0 4 0 plans to hold
60Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Underwear it for a long
Co. Ltd. time
Shenzhen The Group
Nanfang 13181700.0 11681700.0 13181700.0 plans to hold
0.000.000.000.00
Textile 0 0 0 it for a long
Co.Ltd. time
Shenzhen
The Group
Xinfang
plans to hold
Knitting 2694300.00 0.00 0.00 2170300.00 0.00 198000.00 2694300.00
it for a long
Factory Co.time
Ltd.Jintian The Group
-
Industry plans to hold
0.000.000.000.0014831681.50.000.00
(Group) Co. it for a long
0
Ltd. time
-
165402900.158219043.165402900.
Total 0.00 0.00 14831681.5 748000.00
007400
0
Derecognition exists in the current period
None
Disclosure of the current period non-trading equity instrument investments by item
None
11. Long-term equity investments
Unit: RMB
Increase/decrease in this period
Invest Balanc
Beginn ment Adjust e of
Beginn ing profit ment Cash provisiEnding
ing balanc or loss of divide on for
Additi Reduc Chang Provisi balancInveste balanc e of recogn other nds or impaire
es e provisi onal ed es in on forized compr profits Others ment
(book on for invest invest other impair
(book
under ehensi declare as atvalue)
value) impair ment ment equity mentthe ve d to be the end
ment equity incom paid of the
metho e period
d
I. Joint ventures
Shenz
hen
Guanh
ua 11155 - 10777
Printin 5887. 0.00 0.00 0.00 3779 0.00 0.00 0.00 0.00 0.00 6044. 0.00
g and 28 842.71 57
Dyein
g Co.Ltd.
11155-10777
Sub-
5887.0.000.000.0037790.000.000.000.000.006044.0.00
total
28842.7157
61Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
II. Associates
Shenz
hen
Changl
ianfa -
3272134243172
Printin 0.00 0.00 0.00 0.00 0.00 23345 0.00 0.00 0.00
138.763.64932.40
g and 0.00
Dyein
g Co.Ltd.-
Sub- 3272 13424 3172
0.000.000.000.000.00233450.000.000.00
total 138.76 3.64 932.40
0.00
11482--11094
Total 8026. 0.00 0.00 0.00 3645 0.00 0.00 23345 0.00 0.00 8976. 0.00
04599.070.0097
Reasons for the obvious inconsistency between the above information and the information used in previous impairment test or
external information
None
Reasons for the difference between the information used in the impairment test of the Company in previous years and the actual
situation of the current year
None
Other explanations
None
12. Investment properties
(1) Investment properties measured at the cost mode
□Applicable □ Not applicable
Unit: RMB
Item Houses and buildings Total
I. Total original book value
1. Beginning balance 350367442.40 350367442.40
2. Increase in the current period 0.00 0.00
(1) Outsourcing 0.00 0.00
(2) Transfer from inventories fixed 0.00 0.00
assets and construction in progress
(3) Increase in business combination 0.00 0.00
3. Decrease in the current period 903094.00 903094.00
(1) Disposal 903094.00 903094.00
(2) Other transfers out 0.00 0.00
4. Ending balance 349464348.40 349464348.40
II. Accumulated depreciation and accumulated
amortization
1. Beginning balance 234374052.21 234374052.21
62Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
2. Increase in the current period 4795122.33 4795122.33
(1) Provision or amortization 4795122.33 4795122.33
3. Decrease in the current period 218548.99 218548.99
(1) Disposal 218548.99 218548.99
(2) Other transfers out 0.00 0.00
4. Ending balance 238950625.55 238950625.55
III. Provision for impairment
1. Beginning balance 0.00 0.00
2. Increase in the current period 0.00 0.00
(1) Provision 0.00 0.00
3. Decrease in the current period 0.00 0.00
(1) Disposal 0.00 0.00
(2) Other transfers out 0.00 0.00
4. Ending balance 0.00 0.00
IV. Book value
1. Book value as at the end of the period 110513722.85 110513722.85
2. Book value as at the beginning of the
115993390.19115993390.19
period
Reasons for the obvious inconsistency between the above information and the information used in previous impairment test or
external information
None
Reasons for the difference between the information used in the impairment test of the Company in previous years and the actual
situation of the current year
None
(2) Investment properties measured by fair value
Not applicable
(2) Conversion to investment properties and measurement at fair value
None
(3) Investment properties without certificate of title
Unit: RMB
Reasons for failure to obtain the
Item Book value
certificate of title
Warrants not obtained for historical
Houses and buildings 10796426.00
reasons
63Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
13. Fixed assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 1761352875.57 1873552843.91
Total 1761352875.57 1873552843.91
(1) Fixed assets
Unit: RMB
Electronic
Houses and Transportation
Item Machinery equipment equipment and Total
buildings equipment
others
I. Total original book value:
1. Beginning balance 737314323.44 2742755668.60 17296480.97 44961075.88 3542327548.89
2. Increase in the current period 0.00 2468978.74 1412244.04 533638.84 4414861.62
(1) Purchase 0.00 2468978.74 1105232.76 533638.84 4107850.34
(2) Transfer from construction 0.00 0.00 307011.28 0.00 307011.28
in progress
(3) Increase in business 0.00 0.00 0.00 0.00 0.00
combination
3. Decrease in the current period 1200082.66 50002603.71 885292.47 1226912.15 53314890.99
(1) Disposal or scrapping 1200082.66 50002603.71 885292.47 1226912.15 53314890.99
4. Ending balance 736114240.78 2695222043.63 17823432.54 44267802.57 3493427519.52
II. Accumulated depreciation
1. Beginning balance 212518046.33 1378019063.83 9666345.31 36492325.52 1636695780.99
2. Increase in the current period 11587083.37 100026828.67 1044210.16 1755110.49 114413232.69
(1) Provision 11587083.37 100026828.67 1044210.16 1755110.49 114413232.69
3. Decrease in the current period 402358.83 45088586.69 750659.45 993873.71 47235478.68
(1) Disposal or scrapping 402358.83 45088586.69 750659.45 993873.71 47235478.68
4. Ending balance 223702770.87 1432957305.81 9959896.02 37253562.30 1703873535.00
III. Provision for impairment
1. Beginning balance 9919769.42 21721908.03 7228.57 430017.97 32078923.99
2. Increase in the current period 0.00 0.00 0.00 0.00 0.00
(1) Provision 0.00 0.00 0.00 0.00 0.00
3. Decrease in the current period 99508.16 3643617.60 1102.16 133587.12 3877815.04
(1) Disposal or scrapping 99508.16 3643617.60 1102.16 133587.12 3877815.04
4. Ending balance 9820261.26 18078290.43 6126.41 296430.85 28201108.95
IV. Book value
1. Book value as at the end of the 502591208.65 1244186447.39 7857410.11 6717809.42 1761352875.57
64Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
period
2. Book value as at the beginning of
514876507.691343014696.747622907.098038732.391873552843.91
the period
(2) Temporarily idle fixed assets
None
(3)Fixed assets leased out through operating leases
None
(4) Fixed assets without certificate of title
Unit: RMB
Reason for failure to properly handle the
Item Book value
certificate of title
Warrants not handled for historical
Houses and buildings 10627142.57
reasons
At the end of the reporting period the Group's fixed assets mortgaged for bank borrowings are detailed in "21. Assets with
restricted ownership or right of use".
(5) Impairment test of fixed assets
□ Applicable□Not Applicable
(6) Disposal of fixed assets
None
14. Construction in progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 5589741.14 5814012.03
Total 5589741.14 5814012.03
(1) Construction in progress situation
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Installation of
machinery 5589741.14 0.00 5589741.14 5814012.03 0.00 5814012.03
equipment
Total 5589741.14 0.00 5589741.14 5814012.03 0.00 5814012.03
65Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(2) Changes of significant construction in progress in the current period
None
(3) Provision for impairment of construction in progress in the current period
None
(4) Impairment test of construction in progress
□ Applicable□Not Applicable
(5) Project materials
None
15. Right-of-use assets
Unit: RMB
Item Houses and buildings Machinery equipment Total
I. Total original book value
1. Beginning balance 36483426.47 1799631.64 38283058.11
2. Increase in the current
5490803.741804754.107295557.84
period
(1)Addition 5490803.74 1804754.10 7295557.84
3. Decrease in the current 0.00 0.00
0.00
period
4. Ending balance 41974230.21 3604385.74 45578615.95
II. Accumulated depreciation
1. Beginning balance 21398599.29 1546340.96 22944940.25
2. Increase in the current
4519984.75380421.644900406.39
period
(1) Provision 4519984.75 380421.64 4900406.39
3. Decrease in the current 0.00 0.00 0.00
period
(1) Disposal 0.00 0.00 0.00
4. Ending balance 25918584.04 1926762.60 27845346.64
III. Provision for impairment
1. Beginning balance 0.00 0.00 0.00
2. Increase in the current 0.00 0.00 0.00
period
(1) Provision 0.00 0.00 0.00
3. Decrease in the current 0.00 0.00 0.00
period
66Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(1) Disposal 0.00 0.00 0.00
4. Ending balance 0.00 0.00 0.00
IV. Book value
1. Book value as at the end of
16055646.171677623.1417733269.31
the period
2. Book value as at the
15084827.18253290.6815338117.86
beginning of the period
16. Intangible assets
(1) Intangible assets situation
Unit: RMB
Item Land use rights Patent right Software Total
I. Total original book value
1. Beginning balance 48258239.00 11825200.00 22819127.70 82902566.70
2. Increase in the current period 0.00 0.00 285155.85 285155.85
(1) Purchase 0.00 0.00 285155.85 285155.85
(2) Internal R&D 0.00 0.00 0.00 0.00
(3) Increase in business 0.00 0.00 0.00 0.00
combination
3. Decrease in the current period 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00
4. Ending balance 48258239.00 11825200.00 23104283.55 83187722.55
II. Accumulated accumulation
1. Beginning balance 17057278.99 11825200.00 18812295.76 47694774.75
2. Increase in the current period 445782.66 0.00 1791293.01 2237075.67
(1) Provision 445782.66 0.00 1791293.01 2237075.67
3. Decrease in the current period 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00
4. Ending balance 17503061.65 11825200.00 20603588.77 49931850.42
III. Provision for impairment
1. Beginning balance 0.00 0.00 0.00 0.00
2. Increase in the current period 0.00 0.00 0.00 0.00
(1) Provision 0.00 0.00 0.00 0.00
3. Decrease in the current period 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00
4. Ending balance 0.00 0.00 0.00 0.00
IV. Book value
67Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
1. Book value as at the end of
30755177.350.002500694.7833255872.13
the period
2. Book value as at the
31200960.010.004006831.9435207791.95
beginning of the period
The ratio of intangible assets formed through the Company's internal research and development to the balance of intangible assets
at the end of the current period is 0.00%
(2) Data resources recognized as intangible assets
None
(3) Details of land use right without certificate of title
None
Other explanations
At the end of the reporting period for the intangible assets mortgaged by the Company for bank borrowings please refer to "21.Assets with restricted ownership or right of use" for details.
(4) Impairment test of intangible assets
Not applicable.
17. Goodwill
(1) Original book value of goodwill
Unit: RMB
Name of the
investees or Beginning
Increase in the current period Decrease in the current period Ending balance
matters forming balance
goodwill
Shenzhen
SAPO
9614758.550.000.009614758.55
Photoelectric
Co. Ltd.Shenzhen
Meibainian
2167341.210.000.002167341.21
Garment Co.Ltd.Total 11782099.76 0.00 0.00 11782099.76
(2) Provision for impairment of goodwill
Unit: RMB
Name of the
investees or Beginning
Increase in the current period Decrease in the current period Ending balance
matters forming balance
goodwill
Shenzhen 9614758.55 0.00 0.00 9614758.55
68Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
SAPO
Photoelectric
Co. Ltd.Shenzhen
Meibainian
2167341.210.000.002167341.21
Garment Co.Ltd.Total 11782099.76 0.00 0.00 11782099.76
(3) Relevant information on the asset group or portfolio of asset groups of the goodwill belongs to
None
(4) Specific determination method of recoverable amount
Reasons for the obvious inconsistency between the above information and the information used in previous impairment test or
external information
None
Reasons for the difference between the information used in the impairment test of the Company in previous years and the actual
situation of the current year
None
18. Long-term deferred expenses
Unit: RMB
Amount
Increase in the
Item Beginning balance amortized in the Other decreases Ending balance
current period
current period
Decoration and
facility renovation 6084115.87 1050865.00 890263.30 0.00 6244717.57
costs
Total 6084115.87 1050865.00 890263.30 0.00 6244717.57
19. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets without offset
Unit: RMB
Ending balance Beginning balance
Item DeductibleDeductible temporary Deferred tax
Deferred tax assets temporary
differences assets
differences
Provision for asset impairment 139103929.95 20865589.48 146194722.68 21929208.40
Unrealized profits of internal
1207375.00301843.752056848.93308527.34
transactions
Deductible losses 96771113.52 14515667.03 96771113.52 14515667.03
Deferred income 91392663.21 13708899.48 95821558.58 14373233.79
Provision for credit losses 54143754.68 9680933.96 55500808.39 9874641.13
Lease liabilities 18041907.24 2706286.09 16381050.71 2457157.61
Fair value changes of investments 14831681.50 3707920.38 14831681.50 3707920.38
69Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
in other equity instruments
Estimated liabilities 11525344.33 1728801.65 9451090.40 1417663.56
Employee compensation payable 4173800.00 1043450.00 4173800.00 1043450.00
Changes in fair value of derivative
495496.9374324.541278559.35191783.90
financial liabilities
Total 431687066.36 68333716.36 442461234.06 69819253.14
(2) Deferred tax liabilities without offset
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
Fair value changes of
investments in other 158219043.74 39554760.94 158219043.74 39554760.94
equity instruments
Rent receivable 7355237.73 1838809.43 8532598.56 2133149.64
Right-of-use assets 17733269.31 2659990.40 15338117.86 2300717.68
Difference between
initial recognition cost
and tax base of long- 62083693.36 15520923.34 62083693.36 15520923.34
term equity
investments
Total 245391244.14 59574484.11 244173453.52 59509551.60
(3) Deferred tax assets or liabilities listed net amount after write-offs
Unit: RMB
Deduction amount of Ending balance of Deduction amount of Beginning balance of
deferred tax assets and deferred tax assets or deferred tax assets and deferred tax assets or
Item
liabilities at the end of liabilities after write- liabilities from the liabilities after write-
the period off beginning of the period off
Deferred tax assets -11288470.47 57045245.89 -10898741.94 58920511.20
Deferred tax liabilities -11288470.47 48286013.64 -10898741.94 48610809.66
(4) Details of unconfirmed deferred tax assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary differences 19478293.76 15750990.01
Deductible losses 354600304.43 365594502.67
Total 374078598.19 381345492.68
(5) Deductible losses from unrecognized deferred tax assets will be expired in the following years
Unit: RMB
Year Ending amount Beginning amount Remark
20250.000.00
202683168900.3783168900.37
70Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
202710067397.5010067397.50
202813479346.6613479346.66
2029121574308.57132565644.36
203075352814.2475352814.24
Year 2031 0.00 0.00
20320.000.00
203350957537.0950960399.54
20340.000.00
Total 354600304.43 365594502.67
20. Other non-current assets
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Advances for
projects and 2118713.58 0.00 2118713.58 2033785.64 0.00 2033785.64
equipment
Investment funds
25760086.270.0025760086.2725760086.270.0025760086.27
to be liquidated
Total 27878799.85 0.00 27878799.85 27793871.91 0.00 27793871.91
71Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
21. Assets with restrictions on the ownership or right of use
Unit: RMB
Ending Beginning
Item
Book balance Book value Restricted type Restricted condition Book balance Book value Restricted type Restricted condition
Monetary Account freezing and Restricted Account freezing and
5505858.22 5505858.22 Restricted right of use 38844838.96 38844838.96
funds guarantee right of use guarantee
Notes Bill endorsement has not Restricted Bill endorsement has
17257688.89 17257688.89 Restricted right of use 30291952.76 30291952.76
receivable been derecognized right of use not been derecognized
Restricted
Fixed assets 581895750.64 440190666.37 Restricted right of use Mortgage 581895750.64 448156480.33 Mortgage
right of use
Intangible Restricted
44770083.00 30759003.79 Restricted right of use Mortgage 44770083.00 31200960.01 Mortgage
assets right of use
Total 649429380.75 493713217.27 695802625.36 548494232.06
72Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
22. Derivative financial liabilities
Unit: RMB
Item Ending balance Beginning balance
Foreign exchange forward contract 495496.93 1278559.35
Total 495496.93 1278559.35
23. Notes payable
Unit: RMB
Category Ending balance Beginning balance
Bank acceptance bills 33929917.81 31095540.29
Total 33929917.81 31095540.29
The total amount of notes payable due but unpaid at the end of the current period was RMB0.00.
24. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item Ending balance Beginning balance
Payment for goods 362238671.51 282510771.35
Service fee 30477900.51 15645017.04
Payment for outsourcing processing 6215285.51 3489364.64
Royalties 6066130.00 2006578.00
Others 632908.24 1160849.52
Total 405630895.77 304812580.55
(2) Significant accounts payable aging more than one year or overdue
At the end of the reporting period the Company had no significant accounts payable with aging over 1 year or overdue.
25. Other payables
Unit: RMB
Item Ending balance Beginning balance
Other payables 162765912.58 160296989.98
Total 162765912.58 160296989.98
(1) Interest payable
None
(2) Dividends payable
None
73Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(3) Other payable
1) List other payable by nature of payment
Unit: RMB
Item Ending balance Beginning balance
Engineering equipment payment 55071801.23 56213373.95
Current accounts 54076488.92 53333604.97
Guarantee and deposits 40483536.01 37775687.75
Others 13134086.42 12974323.31
Total 162765912.58 160296989.98
2) Other significant payable aging over one year or overdue
None
26. Advances from customers
(1) Presentation of advances from customers
Unit: RMB
Item Ending balance Beginning balance
Rent and others 636186.67 1051491.96
Total 636186.67 1051491.96
(2) Important advances from customers with aging more than 1 year or overdue
During the reporting period the Company had no significant advances from customers with aging more than 1 year or
overdue.
27. Contract liabilities
Unit: RMB
Item Ending balance Beginning balance
Payment for goods and others 2417170.20 490562.97
Total 2417170.20 490562.97
Significant contract liabilities with aging over 1 year
None
Amount and reasons for significant changes in book value during the reporting period
None
28. Employee compensation payable
(1) Presentation of employee compensation payable
Unit: RMB
Item Beginning balance Increase in the Decrease in the Ending balance
74Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
current period current period
I. Short-term compensation 53625879.32 112558426.56 115626749.79 50557556.09
II. Post-employment benefits-defined
700000.0011127144.8011827144.800.00
contribution plans
III. Dismissal benefits 2359410.60 0.00 417310.58 1942100.02
Total 56685289.92 123685571.36 127871205.17 52499656.11
(2) Presentation of short-term compensation
Unit: RMB
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
1. Salaries bonuses allowances and
51400482.9399312158.66102588136.1548124505.44
subsidies
2. Employee benefits 0.00 3395523.99 3395523.99 0.00
3. Social insurance premiums 0.00 2548046.96 2548046.96 0.00
Including: medical insurance
0.001899275.891899275.890.00
premiums
Work-related injury
0.00294685.63294685.630.00
insurance premiums
Maternity insurance
0.00354085.44354085.440.00
premiums
4. Housing provident funds 0.00 4883870.64 4883870.64 0.00
5. Trade union funds and employee
2225396.392418826.312211172.052433050.65
education expenses
6. Short-term compensated absences 0.00 0.00 0.00 0.00
7. Short-term profit sharing plan 0.00 0.00 0.00 0.00
Total 53625879.32 112558426.56 115626749.79 50557556.09
(3) Presentation of defined contribution plans
Unit: RMB
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
1. Basic endowment insurance
700000.009389734.6210089734.620.00
premiums
2. Unemployment insurance premiums 0.00 407578.97 407578.97 0.00
3. Enterprise annuity payment 0.00 1329831.21 1329831.21 0.00
Total 700000.00 11127144.80 11827144.80 0.00
Other explanations
The Company participates in the endowment insurance and unemployment insurance plans established by government
agencies in accordance with the regulations. According to the plans the Company makes contributions to such plans according to
the prescribed standards. Except for the above monthly contributions the Company will not assume further payment obligations.The corresponding expenses are included in the current profit or loss or the cost of related assets when incurred.During the reporting period the Company shall pay RMB9389734.62 and RMB407578.97 to the endowment insurance and
unemployment insurance plans respectively (half-year period for 2024: RMB7060060.83 and RMB330717.73). During the
75Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
reporting period the Company has fully paid the amount of endowment insurance and unemployment insurance plans payable
during the reporting period.
29. Taxes payable
Unit: RMB
Item Ending balance Beginning balance
Value-added tax 731310.17 592143.28
Corporate income tax 3771253.21 4720967.29
Individual income tax 553480.53 751443.34
Other taxes 5070014.95 789176.93
Total 10126058.86 6853730.84
30. Non-current liabilities maturing within one year
Unit: RMB
Item Ending balance Beginning balance
Long-term borrowings maturing within
41657178.2947011978.04
one year
Lease liabilities maturing within one year 7704864.29 6884486.59
Estimated liabilities due within one year 0.00 9451090.40
Total 49362042.58 63347555.03
31. Other current liabilities
Unit: RMB
Item Ending balance Beginning balance
Payables for returned goods 14928923.72 23747757.33
Endorsed but undue acceptance bills 17257688.89 30291952.76
Product quality assurance 11525344.33 0.00
Output tax to be carried forward in the
144802.6232312.18
value-added tax
Total 43856759.56 54072022.27
Increases or decreases in short-term bonds payable:
None
32. Long-term borrowings
(1) Classification of long-term borrowings
Unit: RMB
Item Ending balance Beginning balance
Guaranteed borrowings 188652033.29 209400848.04
Less: long-term borrowings maturing
-41657178.29-47011978.04
within one year
Total 146994855.00 162388870.00
Description of the classification of long-term borrowings:
76Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
None
Other explanations including interest rate range:
SAPO Photoelectric a subsidiary of the Company obtained the loan by mortgaging the real estate such as the plant it held
and the Company and Hengmei Optoelectronics Co. Ltd. provided 60% and 40% joint and several liability guarantee for the loan
respectively. The interest rate range of long-term borrowings is 3.26%-3.31%.
33. Lease liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease liabilities 18041907.24 16381050.71
Less: Lease liability maturing within one
-7704864.29-6884486.59
year
Total 10337042.95 9496564.12
34. Deferred income
Unit: RMB
Increase in the Decrease in the
Item Beginning balance Ending balance Formation causes
current period current period
Government Government
96349196.264199478.219022251.4491526423.03
subsidies subsidies received
Total 96349196.26 4199478.21 9022251.44 91526423.03
35. Share capital
Unit: RMB
Changes during the period (+ -)
Beginning Conversion
balance New shares Bonus of provident
Ending balance
Others Sub-total
issued issue fund into
shares
Total shares 506521849.00 0.00 0.00 0.00 0.00 0.00 506521849.00
36. Capital reserve
Unit: RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
Equity premium 1826482608.54 0.00 0.00 1826482608.54
Other capital reserves 135117216.09 0.00 0.00 135117216.09
Total 1961599824.63 0.00 0.00 1961599824.63
37. Other comprehensive income
Unit: RMB
Item Beginning balance Amount in the current period Ending balance
77Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Less:
Less: the
retained
amount
income
included in
included in
Amount other
other
before comprehens Attributable Attributable
comprehens Less:
income tax ive income to parent to minority
ive income income tax
in the in prior company shareholder
in prior expenses
current period and after tax s after tax
periods and
period transferred
transferred
to current
to current
profit or
profit or
loss
loss
I. Other
comprehensiv
e income that
cannot be 106877807.32 0.00 0.00 0.00 0.00 0.00 0.00 106877807.32
reclassified
into profit or
loss
Including:
Fair
value changes
of
investments 106877807.32 0.00 0.00 0.00 0.00 0.00 0.00 106877807.32
in other
equity
instruments
Total of other
comprehensiv 106877807.32 0.00 0.00 0.00 0.00 0.00 0.00 106877807.32
e income
38. Surplus reserves
Unit: RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
Statutory surplus
104262315.640.000.00104262315.64
reserve
Total 104262315.64 0.00 0.00 104262315.64
39. Undistributed profits
Unit: RMB
Item Current period Previous period
Retained earnings as at the end of the previous
272608113.66216160896.14
period before the adjustment
Adjustment of total undistributed profit at the
beginning of the period (+ for increase and - for 0.00 0.00
decrease)
Undistributed profits at the beginning of the period
272608113.66216160896.14
after adjustment
78Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Plus: Net profit attributable to owners of the parent
35234765.5289371134.24
company in this period
Common stock dividends payable 35963029.09 32923916.72
Undistributed profits as at the end of the period 271879850.09 272608113.66
Details of adjustment to undistributed profits as at the beginning of the period:
1)Due to the retrospective adjustment of the Accounting Standards for Business Enterprises and its related new regulations the
undistributed profit at the beginning of the period was affected by RMB0.00.
2)Due to the change in accounting policies the undistributed profit at the beginning of the period was affected by RMB0.00.
3)Due to the correction of major accounting errors the undistributed profit at the beginning of the period was affected by
RMB0.00.
4)Due to the change of consolidation scope caused by the same control the undistributed profit at the beginning of the period was
affected by RMB0.00.
5)The total impact of other adjustments on the undistributed profit at the beginning of the period was affected by RMB0.00.
40. Operating revenue and operating costs
Unit: RMB
Amount in the current period Amount in the previous period
Item
Revenue Cost Revenue Cost
Primary business 1566433554.09 1333183441.76 1597753543.24 1370835912.90
Other business 34048072.22 29329292.33 25630608.66 18770140.16
Total 1600481626.31 1362512734.09 1623384151.90 1389606053.06
Breakdown of operating revenue and operating costs:
Unit: RMB
Division 1 Division 2 Total
Contract
classification OperatingOperating revenue Operating costs Operating costs Operating revenue Operating costs
revenue
Business type 1511063971.82 1320794606.93 89417654.49 41718127.16 1600481626.31 1362512734.09
Including:
Polarizer sales
1511063971.821320794606.930.000.001511063971.821320794606.93
business
Property leasing
0.000.0089417654.4941718127.1689417654.4941718127.16
and other business
Classification by
1511063971.821320794606.9389417654.4941718127.161600481626.311362512734.09
business area
Including:
Domestic 1312309000.43 1167047781.92 89417654.49 41718127.16 1401726654.92 1208765909.08
Overseas 198754971.39 153746825.01 0.00 0.00 198754971.39 153746825.01
Total 1511063971.82 1320794606.93 89417654.49 41718127.16 1600481626.31 1362512734.09
Information related to performance obligations:
None
Other explanations
The Company's commodity sales are mainly the production and sales of polarizers and textile-related commodities. For goods
sold to customers the Company recognizes revenue when control of the right of control of the goods is transferred that is when
the goods are delivered to the designated place of the other party and signed for by the other party. The Company recognizes a
receivable when the goods are delivered to the customer because the delivery of the goods to the customer represents an
79Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
unconditional right to receive the contractual consideration and the maturity of the payment depends only on the passage of time.When the customer makes a prepayment for goods the Company recognizes the transaction amount received as a contract liability
and recognizes the revenue when the goods are delivered to the customer.The Company provides property services to customers and such services represent performance obligations performed over a
period of time. For property service the Company recognizes revenue in the process of providing property services.Information related to the transaction prices allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations of contracts that have been signed but not performed or
not fully performed yet at the end of the reporting period is RMB2417170.20 of which RMB2417170.20 is expected to be
recognized as revenue in 2025 RMB0.00 is expected to be recognized as revenue in 2026 and RMB0.00 is expected to be
recognized as revenue in 2027.Information about the variable consideration in the contract:
None
Major contract change or major transaction prices adjustment of parent company
None
41. Taxes and surcharges
Unit: RMB
Item Amount in the current period Amount in the previous period
Urban maintenance and construction tax 186779.06 202090.93
Education surcharge 132989.76 147375.53
Property taxes 4270965.18 3166336.07
Land use taxes 185694.72 185756.26
Vehicle and vessel use tax 1170.00 1980.00
Stamp duty 879283.21 897237.63
Others 2179.87 13706.37
Total 5659061.80 4614482.79
42. G&A expenses
Unit: RMB
Item Amount in the current period Amount in the previous period
Employee compensation 43886236.10 41752060.58
Depreciation and amortization cost 8075177.45 8054404.08
Leasing and utilities 1318905.59 1216751.91
Intermediary fees 1285128.08 2441780.86
Travel expenses 252585.67 236009.25
Office expenses 376182.51 363280.79
Business entertainment expenses 358372.72 603802.23
Others 4079976.42 5311021.45
Total 59632564.54 59979111.15
43. Selling and distribution expenses
Unit: RMB
Item Amount in the current period Amount in the previous period
Employee compensation 7148494.80 7946065.86
80Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Sales service fee 5822600.27 7435247.07
Others 1973390.12 1991994.74
Business entertainment expenses 542128.76 403569.45
Travel expenses 544505.33 482153.08
Total 16031119.28 18259030.20
44. R&D expenses
Unit: RMB
Item Amount in the current period Amount in the previous period
Employee compensation 8472938.45 7295182.68
Material consumption 42300970.33 38356905.93
Depreciation cost 1239700.65 1667334.64
Others 726136.76 551440.21
Total 52739746.19 47870863.46
45. Financial expenses
Unit: RMB
Item Amount in the current period Amount in the previous period
Net interest expense 3666950.38 11411878.99
Less: interest income -2493076.60 -4864600.64
Profit or loss on exchange 20562319.66 -20379528.28
Handling charges and production costs 932295.46 3025777.53
Total 22668488.90 -10806472.40
Other explanations:
During the reporting period the interest expense of the lease liabilities was RMB355580.82.
46. Other income
Unit: RMB
Source of other income Amount in the current period Amount in the previous period
Government subsidies 8700501.44 11371158.76
Tax incentives 9331437.35 7355228.89
Others 130123.63 164694.72
Total 18162062.42 18891082.37
47. Gains from changes in fair value
Unit: RMB
Sources of gains from changes in fair
Amount in the current period Amount in the previous period
value
Financial assets held for trading 5127945.21 1283637.11
Derivative financial liabilities 783062.42 0.00
Total 5911007.63 1283637.11
48. Investment income
Unit: RMB
81Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Item Amount in the current period Amount in the previous period
Long-term equity investment income
-3645599.07-4247734.12
calculated under the equity method
Investment income obtained during
holding the financial assets held for 3345206.16 6496490.74
trading
Dividend income from investments in
other equity instrument during the 748000.00 958000.00
holding period
Investment income (loss) from
derecognition of derivative financial -317500.00 0.00
liabilities
Total 130107.09 3206756.62
49. Credit loss
Unit: RMB
Item Amount in the current period Amount in the previous period
Losses from bad debts of accounts
815033.69-8286659.86
receivable
Bad debt loss of other receivables -6.04 11418.46
Total 815027.65 -8275241.40
50. Assets impairment loss
Unit: RMB
Item Amount in the current period Amount in the previous period
Inventory price decline loss -55273530.83 -48933632.55
Total -55273530.83 -48933632.55
51. Gains from disposal of assets
Unit: RMB
Source of gains from disposal of assets Amount in the current period Amount in the previous period
Gains from disposal of fixed assets 1163586.44 0.00
52. Non-operating revenue
Unit: RMB
Amount in the current Amount in the previous Amount included in the current
Item
period period non-recurring profit or loss
Gains from unclaimed
2955577.580.002955577.58
payables
Liquidated damages 135405.57 87183.29 135405.57
Gains from the damage and
scrapping of non-current 0.00 62242.48 0.00
assets
Others 13133.66 13510.02 13133.66
Total 3104116.81 162935.79 3104116.81
82Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
53. Non-operating expenses
Unit: RMB
Amount in the current Amount in the previous Amount included in the current
Item
period period non-recurring profit or loss
Compensation expenses 0.00 2279213.52 0.00
Losses on scrapping of non-
21854.2331924.0721854.23
current assets
Others 36046.56 331.92 36046.56
Total 57900.79 2311469.51 57900.79
54. Income tax expenses
(1) Income tax expenses schedule
Unit: RMB
Item Amount in the current period Amount in the previous period
Income tax expenses for the current
6113497.064709832.18
period
Deferred tax expenses 1550469.29 6372358.16
Total 7663966.35 11082190.34
(2) Adjustment process of accounting profits and income tax expenses
Unit: RMB
Item Amount in the current period
Total profits 55192387.93
Income tax expenses calculated at statutory/applicable tax rate 13798096.98
Influence of different tax rates applicable to subsidiaries -3024196.98
Influence of adjustments to the income tax for the prior years 955870.16
Influence of non-taxable income -2034872.95
Influence of nondeductible costs expenses and losses 323031.62
Influence of deductible losses on the use of preliminarily
-51754.06
unrecognized deferred tax assets in previous periods
Effect of deductible temporary differences or deductible losses
4105934.78
from deferred tax assets unrecognized in the current period
Additional deduction for R&D expenses -6408143.20
Income tax expenses 7663966.35
55. Other comprehensive income
See Note Note VII. 37 for details.
83Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
56. Items of statement of cash flows
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Bill deposits and deposits 24284760.87 23834297.67
Current accounts and others 37772057.08 22024376.05
Government subsidies 4199478.21 6113796.59
Interest income 1802046.53 5010933.94
Total 68058342.69 56983404.25
Notes to other cash received related to operating activities: None
Other cash paid related to operating activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Current accounts and others 28654553.90 31939233.10
Bill deposits and deposits 11692439.32 18818477.98
Total 40346993.22 50757711.08
Notes to other cash paid related to operating activities: None
(2) Cash related to investing activities
Other cash received related to investing activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Wealth management investments and
518000000.00965100513.30
others
Total 518000000.00 965100513.30
Important cash received related to investing activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Structural deposits 0.00 700000000.00
Monetary fund 18000000.00 165100513.30
Bank wealth management and others 500000000.00 100000000.00
Total 518000000.00 965100513.30
Notes to other cash received related to investing activities: None
Other cash paid related to investing activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Wealth management investments and
500000000.001099000000.00
others
Total 500000000.00 1099000000.00
Important cash paid related to investing activities
Unit: RMB
Item Amount in the current period Amount in the previous period
84Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Bank wealth management and others 500000000.00 250000000.00
Monetary fund 0.00 649000000.00
Structural deposits 0.00 200000000.00
Total 500000000.00 1099000000.00
Notes to other cash paid related to investing activities: None
(3) Cash related to financing activities
Other cash received related to financing activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Notes to other cash received related to financing activities: None
Other cash paid related to financing activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Lease payments 6983290.34 6463136.37
Total 6983290.34 6463136.37
Notes to other cash paid related to financing activities: None
Changes in various liabilities arising from financing activities
□Applicable □ Not applicable
Unit: RMB
Increase in the current period Decrease in the current period
Beginning
Item
balance Cash Non-cash Non-cash
Ending balance
Cash changes
changes changes changes
Long-term
209400848.040.003308538.1824057352.930.00188652033.29
borrowings
Lease liabilities 16381050.71 0.00 8644146.87 6983290.34 0.00 18041907.24
Total 225781898.75 0.00 11952685.05 31040643.27 0.00 206693940.53
(4) Notes to cash flows expressed in net amount
None
(5) Significant activities and financial impacts that do not involve current cash receipts and payments
but affect the financial position of the enterprise or may affect the cash flows in the future
None
57. Supplementary information to the statement of cash flows
(1) Supplementary information to the statement of cash flows
Unit: RMB
Supplementary information The current period Amount in previous period
1. Net profit adjusted to cash flows from operating activities:
Net profit 47528421.58 66802961.73
85Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Plus: provision for assets impairment 54458503.18 57208873.95
Depreciation of fixed assets depletion of oil and gas
119208355.02118638422.24
assets depreciation of productive biological assets
Depreciation of right-of-use assets 4900406.39 4784150.78
Amortization of intangible assets 2237075.67 2318830.41
Amortization of long-term deferred expenses 890263.30 1279415.92
Losses from disposal of fixed assets intangible assets and
-1163586.440.00
other long-term assets ( "-" for gains)
Losses on write-off of fixed assets ("-" for gains) 21854.23 0.00
Losses from changes in fair value ("-" for gains) -2446624.07 -1283637.11
Financial expenses ("-" for gains) -3649406.53 -22218351.39
Investments losses ("-" for gains) 3963099.07 -729654.78
Decreases in deferred tax assets (“-” for increases) 1875265.31 6598642.68
Increase in deferred tax liabilities ("-" for decreases) -324796.02 -226284.52
Decreases in inventories ("-" for increases) -20257532.33 -159463630.34
Decreases in operating receivables (“-” for increases) 49387975.80 -133162455.63
Increases in operating payables (“-” for decreases) 68705046.83 71287566.00
Others
Net cash flows from operating activities 325334320.99 11834849.94
2. Significant investing and financing activities not involving in
cash receipts and payments:
Transfer of debts into capital 0.00 0.00
Convertible corporate bonds maturing within 1 year 0.00 0.00
Fixed assets leased from financing 0.00 0.00
3. Net change in cash and cash equivalents:
Ending balance of cash 577224121.16 223945565.47
Less: beginning balance of cash 302084839.35 461420457.33
Plus: ending balance of cash equivalents 0.00 0.00
Less: beginning balance of cash equivalents 0.00 0.00
Net increase in cash and cash equivalents 275139281.81 -237474891.86
(2) Net cash paid for acquisition of subsidiaries in the current period
None
(3) Net cash received for disposal of subsidiaries in the current period
None
(4) Breakdowns of cash and cash equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 577224121.16 302084839.35
Including: cash on hand 9250.78 4751.69
86Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Unrestricted bank deposits 577214870.38 302080087.66
Other unrestricted monetary funds 0.00 0.00
II. Cash equivalents 0.00 0.00
III. Ending balance of cash and cash
577224121.16302084839.35
equivalents
Including: cash and cash equivalents subject
to restricted use by the parent company or 0.00 0.00
subsidiaries within the Group
(5) Limited use but still presented as cash and cash equivalents
During the reporting period the Group had no cash and cash equivalents with restricted use that were still presented as such.
(6) Monetary funds not classified as cash and cash equivalents
Unit: RMB
Reasons for not classified as
Item The current period Amount in previous period
cash and cash equivalents
Not available for payment at
Bill and L/C guarantee 2104358.22 1645000.00
any time
Interest on demand deposits Not available for payment at
579003.23319864.92
and 7-day notice deposits any time
Others 3401500.00 0.00 Account freezing
Total 6084861.45 1964864.92
(7) Notes on other significant activities
None
58. Notes to the statements of changes in owners' equity
Specify the name of "others" items adjusted to the ending balance of the previous year the adjusted amount and other matters:
None
59. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Ending balance of foreign Ending balance of translated
Item Exchange rate of conversion
currency RMB
Monetary funds 137669190.69
Including: USD 8846034.59 7.1586 63325223.22
EUR 0.00 0.00 0.00
HKD 115356.27 0.9120 105204.92
JPY 1496749245.00 0.0496 74238762.55
Accounts receivable 113858062.26
Including: USD 15869621.28 7.1586 113604270.90
87Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
EUR 0.00 0.00 0.00
HKD 278280.00 0.9120 253791.36
Long-term borrowings 0.00
Including: USD 0.00 0.00 0.00
EUR 0.00 0.00 0.00
HKD 0.00 0.00 0.00
Other receivables 504871.86
Including: USD 70526.62 7.1586 504871.86
Accounts payable 225206459.09
Including: USD 6484574.94 7.1586 46420478.17
JPY 3604556067.00 0.0496 178785980.92
Other payables 4776528.99
Including: USD 663186.00 7.1586 4747483.30
JPY 15131.00 0.0496 750.50
HKD 31025.43 0.9120 28295.19
60. Lease
(1) The Company acted as lessee:
□Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable □ Not applicable
The Group leases a number of assets including houses and buildings for lease terms of 1 to 10 years. The above right-of-use
assets cannot be used for purposes such as borrowing mortgages guarantees etc.The short-term lease expenses with simplified accounting treatment and recognized in the current profit or loss during the
reporting period amounted to RMB476994.45 (the same period last year: RMB676430.33).The total cash outflows related to leases during the reporting period amounted to RMB7460284.79 (The same period last year:
RMB6547136.37).Situations involving sale and leaseback transactions
None
(2) The Company acted as the lessor
Operating lease as lessor
Unit: RMB
Including: revenue related to variable
Item Lease income lease payments not included in lease
receipts
Buildings and constructions 49694309.70 0.00
Total 49694309.70 0.00
Undiscounted lease receipts for each of the next five years
Unit: RMB
Annual undiscounted lease receipts
Item
Ending amount Beginning amount
The First year 80854920.00 66825466.35
88Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
The Second year 63308598.11 49946457.62
The Third year 18465493.35 31103495.38
The Fourth year 10366794.02 8785825.58
The Fifth year 8449007.51 6625510.75
Total undiscounted lease receipts after
6777793.605106929.55
five years
Reconciliation of undiscounted lease receipts and net lease investment
None
VIII. R&D expenditures
Unit: RMB
Item Amount in the current period Amount in the previous period
Employee compensation 8472938.45 7295182.68
Material consumption 42300970.33 38356905.93
Depreciation cost 1239700.65 1667334.64
Others 726136.76 551440.21
Total 52739746.19 47870863.46
Including: expensed R&D expenditures 52739746.19 47870863.46
Capitalized R&D expenditures 0.00 0.00
1. R&D projects eligible for capitalization
None
2. Important outsourced projects under research
None
IX. Changes in consolidation scope
The consolidation scope of the Company during the reporting period has not changed.X. Equity in other entities
1. Equity in the subsidiaries
(1) Compositions of the Group
Unit: RMB
Name of Registered Main Registrati Shareholding ratio Method of
Business nature
subsidiaries capital premise on place Direct Indirect acquisition
Shenzhen
Lisi
Establishmen
Industrial 2360000.00 Shenzhen Shenzhen Property leasing 100.00%
t
Development
Co. Ltd.
89Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Shenzhen
Shenfang
Property Establishmen
Property 1600400.00 Shenzhen Shenzhen 100.00%
management t
Management
Co. Ltd.Shenzhen
Meibainian Production and Establishmen
13000000.00 Shenzhen Shenzhen 100.00%
Garment Co. sales of textiles t
Ltd.Shenzhen
Shenfang
Sungang Property Establishmen
1000000.00 Shenzhen Shenzhen 100.00%
Property management t
Management
Co. Ltd.Shenzhen
SAPO Production and
583333333.00 Shenzhen Shenzhen 60.00% Acquisition
Photoelectric sales of polarizers
Co. Ltd.SATO (Hong
Hong Establishmen
Kong) HKD10000.00 Hong Kong Polarizer sales 100.00%
Kong t
Limited
(2) Significant non-wholly-owned subsidiaries
Unit: RMB
Profit or loss Dividends declared to
Balance of minority
Shareholding ratio by attributable to minority be distributed to
Name of subsidiaries interests as at the end
minority shareholders shareholders in this minority shareholders
of the period
period in this period
Shenzhen SAPO
40.00%12293656.060.001295744379.94
Photoelectric Co. Ltd.
(3) Key financial information of significant non-wholly-owned subsidiaries
Unit: RMB
Ending balance Beginning balance
Name
of Curren Non- Curren Non-Non- Total Non- Total
subsidi Curren Total t current Curren Total t currentcurrent liabiliti current liabiliti
aries t assets assets liabiliti liabiliti t assets assets liabiliti liabilitiassets es assets es
es es es es
Shenz
hen
SAPO 2245 1887 4133 65070 24872 89942 2039 1998 4038 56760 26770 83531
Photoe 89798 53206 43005 5277. 4561. 9838. 67304 90313 57617 3106. 6992. 0099.lectric 9.42 3.56 2.98 51 16 67 2.84 0.31 3.15 30 70 00
Co.Ltd.Unit: RMB
Amount in the current period Amount in the previous period
Name of
subsidiaries Operating
Total Cash flows Operating Total Cash flows
Net profit
revenue comprehen from
Net profit
revenue comprehen from
sive operating sive operating
90Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
income activities income activities
Shenzhen
SAPO 15486065 30734140. 30734140. 31307056 15704845 57272216. 57272216. 2305968.0
Photoelectr 18.05 16 16 3.35 64.74 24 24 9
ic Co. Ltd.
2. Transactions leading to changes in the share of owners' equity in subsidiaries and still controlling the
subsidiaries
(1) Explanation of changes in the share of owners' equity in subsidiary
None
(2) Impact of the transaction on minority interests and owners' equity attributable to the parent company
None
3. Equity in joint ventures or associates
(1) Significant joint ventures or associates
None
(2) Key financial information of significant joint ventures
None
(3) Key financial information of significant associates
None
(4) Summarized financial insignificant of unimportant joint ventures and associates
Unit: RMB
Ending balance/amount incurred in the Beginning balance/amount incurred in
current period previous period
Joint ventures:
Total of investment book value 107776044.57 111555887.28
Total amounts of the following items
calculated at shareholding ratio
- Net profit -3779842.71 -4224706.30
- Other comprehensive income 0.00 0.00
- Total comprehensive income -3779842.71 -4224706.30
Associates:
Total of investment book value 3172932.40 3272138.76
Total amounts of the following items
calculated at shareholding ratio
91Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
- Net profit 134243.64 -23027.82
- Other comprehensive income 0.00 -115825.06
- Total comprehensive income 134243.64 -138852.88
(5) Description of significant restrictions on the ability of joint ventures or associates to transfer funds to
the Company
None
(6) Excess losses incurred by joint ventures or associates
None
(7) Unrecognized commitments related to investments in joint ventures
None
(8) Contingent liabilities related to joint ventures or investments in associates
None
4. Important joint operation
None
5. Equity in the structured entities not included in the scope of consolidated financial statements
None
6. Others
None
XI. Government grants
1. Government grants not recognized by amounts receivable at the end of the reporting period
Not applicable.
2. Liability items involving government grants
Unit: RMB
Amount Amount Other Related
New subsidies
Accountin Beginning included
transferred to
changes in to
in the current in non- other income in Ending balanceg item balance the current assets/in
period operating the current period come
revenue in period
92Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
the current
period
Deferred Related
96349196.263940329.840.008441353.07321750.0091526423.03
income to assets
Related
Deferred
0.00 259148.37 0.00 259148.37 0.00 0.00 to
income
income
3. Government grants included in the current profit or loss
Unit: RMB
Accounting item Amount in the current period Amount in the previous period
Other income 8700501.44 11371158.76
XII. Risks associated with financial instruments
The Group's principal financial instruments include monetary funds transactional financial assets notes
receivable accounts receivable receivables financing other receivables investment in other equity instruments
short-term borrowings derivative financial liabilities notes payable accounts payable other payables other
current liabilities and long-term borrowings etc. and at the end of the reporting period the financial instruments
held by the Group are as follows as detailed in "Section 8 VII. Notes to Consolidated Financial Statements". The
risks associated with these financial instruments and the risk management policies adopted by the Group to
mitigate these risks are described below. The Group's management manages and monitors these risk exposures to
ensure that these risks are kept within limits.Item Ending balance Beginning balance
Financial assets
Measured at fair value through current profit or loss
Financial assets held for trading 714772329.76 731419904.42
Measured at fair value through other comprehensive income
Receivables financing 8286636.78 6804603.68
Other equity instrument investments 165402900.00 165402900.00
Measured at amortized costs
Monetary funds 583308982.61 340961443.82
Notes receivable 20078297.52 47305221.88
Accounts receivable 814121353.42 863731936.89
Other receivables 3133087.51 3596543.96
Financial liabilities
Derivative financial liabilities 495496.93 1278559.35
93Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Measured at amortized costs
Notes payable 33929917.81 31095540.29
Accounts payable 405630895.77 304812580.55
Other payables 162765912.58 160296989.98
Other current liabilities 17257688.89 30291952.76
Long-term borrowings 188652033.29 209400848.04
The Group uses sensitivity analysis techniques to analyze the possible impact of reasonable and possible
changes in risk variables on the current profit or loss and shareholders' equity. As any risk variable seldom
changes in isolation and the correlation between the variables will have a significant effect on the final affected
amount of the change of a risk variable the following contents are carried out under the assumption that the
change of each variable is independently:
1.Risk management objectives policies and procedures and changes in the current year
1.1 Market risk
1.1.1 Foreign exchange risk
Foreign exchange risk refers to the risk of losses arising from the exchange rate fluctuation. The Group's
exposure to foreign exchange risk is mainly related to the USD the JPY and the HKD. Except for some of the
Group's import purchases and export sales in Chinese mainland which were mainly settled in USD JPY and
HKD the Group's other major business activities were settled in RMB.As of June 30 2025 except for the foreign currency monetary items the Group's assets and liabilities were
all RMB balances. The foreign currency balances of assets and liabilities (converted into RMB) listed in the table
below may expose the Group to foreign exchange risks that could impact its operating performance.Ending balance
Item
Assets Liabilities
USD 177434365.98 51167961.47
JPY 74238762.55 178786731.42
HKD 358996.28 28295.19
The Group closely monitors the impact of exchange rate changes on the Group's foreign exchange risk and
will take measures to avoid foreign exchange risk according to the actual situation.Sensitivity analysis of foreign exchange risk
With other variables unchanged the pre-tax impact of reasonable changes in exchange rates on the current
profit or loss and shareholders' equity is as follows:
Amount in the current period
Item Fluctuation inexchange rate Impact on profit Impact on shareholders' equity
All foreign Revaluation against 1102456.84 1102456.84
94Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
currencies RMB by 5%
All foreign Depreciation against
currencies RMB by 5% -1102456.84 -1102456.84
1.1.2. Interest rate risk - risk of changes in cash flows
The Group's risk of changes in cash flows of financial instruments due to changes in interest rates is mainly
related to bank borrowings with floating rates. The Group continues to closely monitor the impact of interest rate
changes on the Group's interest rate risk. The Group's policy is to maintain the floating rate of these borrowings
and there are currently no interest rate swap arrangements.Sensitivity analysis of interest rate risk
With other variables unchanged the pre-tax impact of reasonable changes in interest rates on the current
profit or loss and shareholders' equity is as follows:
Fluctuation in Amount in the current periodItem exchange rate Impact on profit Impact on shareholders' equity
Floating rate
borrowings Up 1% -1884683.85 -1884683.85
Floating rate
borrowings Down 1% 1884683.85 1884683.85
1.2. Credit risk
As of June 30 2025 the maximum credit risk exposure that may cause financial losses to the Group mainly
comes from the losses of the Group's financial assets due to the failure of the other party to the contract to perform
its obligations including: monetary funds financial assets held for trading notes receivable accounts receivable
receivables financing and other receivables. On the balance sheet date the book value of the Group's financial
assets represents its maximum credit risk exposure.In order to reduce the credit risk the Group arranges special personnel to determine the credit line 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 adequate provision for credit losses has been made for the relevant financial assets. Therefore the
management of the Group believes that the credit risk assumed by the Group has been greatly reduced.The Group's monetary funds are deposited in banks with high credit ratings so the monetary funds only have
low credit risk.As of June 30 2025 the balance of accounts receivable from the top five customers of the Group was
RMB489633780.36 accounting for 57.49% of the balance of accounts receivable of the Group. In addition the
Group has no other significant credit risk exposure concentrated in a single financial asset or a portfolio of
financial assets with similar characteristics.
1.3. Liquidity risk
When managing liquidity risk the Group maintains cash and cash equivalents that the management believes
are sufficient and monitors them to meet the Group's operational needs and reduce the impact of fluctuations in
cash flows. The Group's management monitors the use of bank borrowings and ensures compliance with loan
agreements.As of June 30 2025 the unused comprehensive bank credit line of the Group was RMB1549.54mn.The Group's financial liabilities held are presented as follows based on the maturity of undiscounted
remaining contractual obligations:
95Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Unit: RMB
Item Within 1 year 1-5 years Over 5 years Total
Notes payable 33929917.81 0.00 0.00 33929917.81
Accounts 0.00 0.00
payable 405630895.77 405630895.77
Other payables 162765912.58 0.00 0.00 162765912.58
Other current
liabilities 43856759.56
0.000.0043856759.56
Long-term
borrowings 46935123.61 152256808.14
0.00199191931.75
Lease
liabilities 8290088.69 5690012.73 5960542.15 19940643.57
Derivative 0.00 0.00
financial 495496.93 495496.93
liabilities
2. Financial assets
(1) Classification of transfer methods
Unit: RMB
Nature of transferred Amount of transferred Judgment basis for
Transfer method Derecognition
financial assets financial assets derecognition
The credit risk level of the
acceptance bank of the
bank acceptance bill
transferred by
Outstanding bank
endorsement is relatively
Transfer by acceptance bills
71551474.82 Derecognized high and almost all the
endorsement classified as
risks and rewards of the
receivables financing
ownership of the
corresponding receivables
financing have been
transferred
The credit risk level of the
acceptance bank of the
bank acceptance bill
Outstanding bank transferred by
Transfer by acceptance bills endorsement is not high
17257688.89 Not derecognized
endorsement classified as notes and almost all the risks
receivable and rewards of the
ownership of the relevant
notes receivable are
retained
Total 88809163.71
(2) Financial assets derecognition due to transfer
Unit: RMB
Transfer method of Amount of derecognized Gains or losses related to
Item
financial assets financial assets derecognition
Receivables financing Transfer by endorsement 71551474.82 0.00
Total 71551474.82 0.00
96Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(3) Continued involvement in the transfer of financial assets
Unit: RMB
Amount of assets arising from Amount of liabilities arising
Item Asset transfer method
continued involvement from continued involvement
Notes receivable Transfer by endorsement 17257688.89 17257688.89
Total 17257688.89 17257688.89
XIII. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
Unit: RMB
Fair value as at the end of the period
Item Measured at the fair value Measured at the fair value Measured at the fair value
Total
of the 1st level of the 2nd level of the 3rd level
I. Continuous
measurement of fair -- -- -- --
value
(Ⅰ)Financial assets
0.00714772329.760.00714772329.76
held for trading
(II) Receivable
financing 0.00 0.00 8286636.78 8286636.78
(III) Investments in 0.00 0.00
other equity 165402900.00 165402900.00
instruments
Total assets 0.00
constantly measured 714772329.76 173689536.78 888461866.54
at fair value
（Ⅳ）Derivative 0.00 0.00
495496.93495496.93
financial liabilities
Total liabilities 0.00 0.00
constantly measured 495496.93 495496.93
at fair value
2. Basis for recognition of the market price of items measured at fair value of Level 1 on a going and non-
going concern
None.
3. Qualitative and quantitative valuation techniques and important parameters of sustainable and non-
sustainable items measured on the basis of fair value of level 2
Ending
Item Valuation techniques Input value
Fair value
Financial assets held for trading 714772329.76 Discounted cashflow method Expected rate of return
97Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
The contracted delivery
exchange rate under
forward foreign
Derivative financial liabilities 495496.93 Discounted cashflow method exchange contracts andthe market forward
exchange rate as of the
balance sheet date
4. Continuous and non-continuous Level 3 fair value measurement items valuation techniques used and
the qualitative and quantitative information of important parameters
Ending
Item Valuation techniques Input value
Fair value
Receivables financing 8286636.78 Discounted cash flowmethod Discount rate
Comparable Public P/B ratio of similar listed
Company Method companies
Other equity instrument investments 165402900.00 Comparable earningsmethod Market price
Statement adjustment
method Book value
5. The information of adjustment between the beginning and the end of the book value and analysis on
the sensitivity of the unobservable parameters of sustainable and non-sustainable items measured on the
basis of fair value of tier three
None.
6. Continuous measurement items by fair value reason for conversion among all levels in the current
period and policies for determining the time of conversion
None.
7. Change of valuation techniques in the current period and reason for change
None.
8. Condition of fair value of financial assets and financial liabilities not measured at fair value
Financial assets and liabilities not measured at fair value mainly include: monetary funds notes receivable
accounts receivable other receivables notes payable accounts payable other payables other current liabilities
and long-term borrowings etc.The Group's management believes that the book value of financial assets and financial liabilities measured
at amortized costs in the financial statements is close to the fair value of such assets and liabilities.
98Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
9. Others
None.XIV. Related parties and related party transactions
1. Parent company
Parent company's Parent company's
Registered capital shareholding voting rights
Name Registration place Business nature
(RMB) percentage in the percentage in the
Company Company
Floor 18
Shenzhen Investment Equity investment
Investment Building Shennan real estate 33586000000.00 46.21% 46.21%
Holdings Co. Ltd. Road Futian development etc.District Shenzhen
The parent company of the Company is a wholly state-owned company approved and authorized by the Shenzhen Municipal
Government which exercises the functions of the investor in accordance with the law for the state-owned enterprises within the
authorized scope.The ultimate controller of the Company is the State-owned Assets Supervision and Administration Commission of Shenzhen
Municipal People's Government.During the reporting period the registered capital of the parent company increased from RMB33.186bn to RMB33.586bn.
2. Subsidiaries of the Company
See Note 10 Rights and interests in other entities for details of the subsidiary of the Company.
3. Joint ventures and associates
See Note 11. Long-term equity investment for details of important joint ventures or associates of the Company.Joint ventures and associates involved in the related-party transactions with the Company in the Current Period or leading to
balance due to the related party transaction they had with the Company in previous periods:
Name of joint venture or associates Relationship with the Company
Shenzhen Guanhua Printing and Dyeing Co. Ltd. Joint ventures
Shenzhen Changlianfa Printing and Dyeing Co. Ltd. Associates
4. Other related parties
Other related parties Relationship between other related parties with the COOEC
The Company's participated company whose chairman is appointed by the
Shenzhen Xinfang Knitting Factory Co. Ltd.Group
The Company's participated company whose chairman is appointed by the
Shenzhen Dailisi Underwear Co. Ltd.Group
99Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Shenzhen Shentou Property Development Co. Subsidiary of the parent company of the Company Shenzhen Investment
Ltd. Holdings Co. Ltd.Shenzhen Seg Longyan Energy Technology Co. Subsidiary of the parent company of the Company Shenzhen Investment
Ltd. Holdings Co. Ltd.Guoren P&C Insurance Co. Ltd. Shenzhen Subsidiary of the parent company of the Company Shenzhen Investment
Branch Holdings Co. Ltd.Shenzhen Talent Service Center (Shenzhen Subsidiary of the parent company of the Company Shenzhen Investment
Talent Market) Holdings Co. Ltd.Subsidiary of the parent company of the Company Shenzhen Investment
Shenzhen Property Management Co. Ltd.Holdings Co. Ltd.Shenzhen Cultural Enterprise Development Co. Subsidiary of the parent company of the Company Shenzhen Investment
Ltd. Holdings Co. Ltd.Shenzhen Investment Holdings Development Subsidiary of the parent company of the Company Shenzhen Investment
Co. Ltd. Holdings Co. Ltd.Shenzhen Investment Holdings Digital Subsidiary of the parent company of the Company Shenzhen Investment
Technology Co. Ltd. Holdings Co. Ltd.Subsidiary of the parent company of the Company Shenzhen Investment
Shenzhen Legal Training Center Co. Ltd.Holdings Co. Ltd.Shenzhen Investment Holdings Sports Event Subsidiary of the parent company of the Company Shenzhen Investment
Development Co. Ltd. Holdings Co. Ltd.Subsidiary of the parent company of the Company Shenzhen Investment
Shenzhen Leaguer Education Co. Ltd.Holdings Co. Ltd.Shenzhen College Student Cadre Training Center Subsidiary of the parent company of the Company Shenzhen Investment
Co. Ltd. Holdings Co. Ltd.Minority shareholder of the Company's subsidiary SAPO Photoelectric; one
Hengmei Optoelectronics Co. Ltd.of the directors of the company is a supervisor of SAPO Photoelectric
5. Related party transactions
(1) Related party transactions on purchase and sales of goods rendering and receipt of services
Purchase of goods/receipt of services
Unit: RMB
Whether the
Content of related Amount in the Approved Amount in the
Related party transaction quota is
party transactions current period transaction quota previous period
exceeded
Hengmei Optical film
Optoelectronics materials and 0.00 2874.60
Co. Ltd. processing
Shenzhen Seg
Longyan Energy Purchase of
469327.43513812.22
Technology Co. electricity
Ltd.Shenzhen
Guanhua Printing
Interest expenses 2831.38 5709.68
and Dyeing Co.Ltd.Guoren P&C
Insurance
Insurance Co. Ltd. 100377.15 103331.85
premiums
Shenzhen Branch
Shenzhen Talent
Service Center Outsourcing
31318.1131865.09
(Shenzhen Talent service fee
Market)
Shenzhen Property Property 1121.48 21132.37
100Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Management Co. management fee
Ltd.Shenzhen Legal
Training Center Training expenses 680.00 1485.00
Co. Ltd.Shenzhen
Office
Investment
expenses/informati
Holdings Digital 26687.76 0.00
on construction
Technology Co.expenses
Ltd.Shenzhen
Investment
Holdings Rental 219288.00 0.00
Development Co.Ltd.Shenzhen Leaguer
Education Co. Training expenses 6454.70 0.00
Ltd.Shenzhen Cultural
Purchase of
Enterprise
computers and 17196.00 0.00
Development Co.photocopiers
Ltd.Sales of goods/ rendering of services
None.
(2) Management on commission/contract and commissioned management/contracting-out
None.
(3) Related party leases
None.
(4) Related party guarantees
None.
(5) Information on inter-bank lending of capital of related parties
Unit: RMB
Related party Amount borrowed Start date Maturity date Notes
Borrowed from
Shenzhen Guanhua
Annual interest rate
Printing and Dyeing Co. 3806454.17 July 30 2019 July 31 2025
0.15%
Ltd.Lending
(6) Asset transfer and debt restructuring of related parties
None.
101Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(7) Remuneration of key officers
Unit: RMB
Item Amount in the current period Amount in the previous period
Remuneration of key officers 1994146.00 2266711.24
(8) Other related party transactions
None.
6. Accounts receivable and payable of related parties
(1) Receivables
Unit: RMB
Ending balance Beginning balance
Project Related party Provision for Provision for
Book balance Book balance
bad debts bad debts
Accounts Shenzhen Shentou Property
6027.00602.706027.00602.70
receivable Development Co. Ltd.Other Shenzhen Dailisi Underwear Co.
550000.0027500.001100000.0055000.00
receivables Ltd.Other Shenzhen Investment Holdings
73096.003910.6473096.003910.64
receivables Development Co. Ltd.
(2) Payables
Unit: RMB
Project Related party Ending book balance Beginning book balance
Shenzhen Guanhua Printing and Dyeing
Other payables 3811678.92 3816981.88
Co. Ltd.Shenzhen Changlianfa Printing and
Other payables 2283299.95 2281299.95
Dyeing Co. Ltd.Shenzhen People's Congress Cadre
Other payables 413268.00 0.00
Training Center Co. Ltd.Shenzhen Xinfang Knitting Factory
Other payables 246789.85 244789.85
Co. Ltd.Shenzhen Investment Holdings Digital
Other payables 0.00 37735.84
Technology Co. Ltd.Shenzhen Investment Holdings
Other payables 29238.40 29238.40
Development Co. Ltd.Shenzhen Investment Holdings Sports
Other payables 0.00 80000.00
Event Development Co. Ltd.Shenzhen Property Management Co.Other payables 0.00 7934.52
Ltd.
7. Commitments from related parties
None.
102Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
8. Others
None.XV. Commitments and contingencies
1. Significant commitments
As of June 30 2025 the Group had no commitment to constructing long-term assets.
2. Contingencies
(1) Significant contingencies on the balance sheet date
As of June 30 2025 the Group had no contingencies such as pending litigation and external guarantees to be disclosed.
(2) Notes shall be given even if there were no significant contingencies required to be disclosed by the
Company
The Company has no significant contingencies required to be disclosed.
3. Others
None.XVI. Events after the balance sheet date
1. Significant non-adjustment matters
None.
2. Profit distribution
None.
3. Sales return
None.
4. Events after the balance sheet date
None.
103Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
XVII. Other significant events
1. Correction of accounting errors in prior period
None.
2. Debt restructuring
None.
3. Asset replacement
None.
4. Annuity plan
None.
5. Discontinued operations
None.Segment information
Determination basis and accounting policies for reporting segments
According to the internal organizational structure management requirements and internal reporting system of the Group the
Group's operating business is divided into two operating segments. The management of the Group regularly evaluates the
operating results of these segments to decide on the allocation of resources to them and evaluate their performance. On the basis of
operating segments the Group has identified the following two reporting segments polarizer business property leasing business
and other business.Information on segment reporting is disclosed according to the accounting policies and measurement standards adopted by
each segment when reporting to the management and these measurement bases are consistent with the accounting and
measurement bases when preparing the financial statements.Financial information of reporting segments
Unit: RMB
Property leasing and
Item Polarizer Inter-segment offset Total
others
Operating revenue:
Revenue from external
1543340832.2857140794.030.001600481626.31
transactions
Revenue from
transactions between 0.00 1122089.44 -1122089.44 0.00
segments
Total operating 1543340832.28 58262883.47 -1122089.44 1600481626.31
104Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
revenue of segments
Operating expenses
1482393886.6937641023.87-791195.761519243714.80
(Note)
Operating profit 25052526.36 31463039.17 -4369393.62 52146171.91
Net profit 26919042.30 24985456.49 -4376077.21 47528421.58
Total assets of
4080553754.683181267855.89-1956071152.265305750458.31
segments
Total division
899396928.87195599415.37-36131912.551058864431.69
liabilities
(3) If the Company has no reporting segments or cannot disclose the total assets and total liabilities of
each reporting segment the reasons shall be stated.None.
(4) Other notes
Note: this item includes operating costs taxes and surcharges G&A expenses R&D expenses selling and distribution
expenses and financial expenses.
7. Other significant transactions and events that influence the decision-making of investors
Real estate not yet disposed of by Shenzhen Xieli Automobile Enterprise Co. Ltd. (hereinafter referred to as "Shenzhen Xieli")
The Company and Hong Kong Xieli Maintenance Co. Ltd. (hereinafter referred to as "Hong Kong Xieli") invested and
established a Sino-foreign joint venture enterprise Shenzhen Xieli Automobile Enterprise Co. Ltd. In March 2020 Shenzhen
Xieli was deregistered from its industrial and commercial registration by the Shenzhen Administration for Market Regulation. In
July 2020 the Company filed an administrative action with the Yantian District People's Court of Shenzhen City Guangdong
Province to revoke the approval of Shenzhen Administration for Market Regulation for the deregistration of Shenzhen Xieli.In December 2022 the Yantian District People's Court of Shenzhen City Guangdong Province retried the first-instance
judgment and revoked the administrative act of approving the deregistration of Shenzhen Xieli. In January 2023 the third party of
the original trial Hong Kong Xieli appealed to the Shenzhen Intermediate People's Court of Guangdong Province. Later because
Hong Kong Xieli failed to prepay the case acceptance fee on time the Shenzhen Intermediate Peoples Court of Guangdong
Province issued an administrative ruling ruling that Hong Kong Xieli should withdraw the appeal and the retrial judgment of first
instance took effect on March 22 2023. At present Shenzhen Xieli has resumed its existence in the industrial and commercial
registration but its future direction still needs to be negotiated by all shareholders.
8. Others
None.XVIII. Notes to the main items of the parent company's financial statements
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
105Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 12499547.59 10649986.34
1-2 years 0.00 0.00
2 to 3 years 0.00 0.00
Over 3 years 2485076.00 2485076.00
3 - 4 years 2485076.00 2485076.00
Total 14984623.59 13135062.34
(2) Disclosure by provision method for bad debts
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Type debts Book debts Book
Provisio value Provisio value
Amount Ratio Amount Amount Ratio Amount
n ratio n ratio
Account
s
receivab
le with
provisio
n for bad
debts on
an
individu
al basis
Account
s
receivab
le with
provisio
149846257420.147272131350106074.130289
n for bad 100.00% 1.72% 100.00% 0.81%
23.598102.7862.347187.63
debts on
a
combina
tion
basis
149846257420.147272131350106074.130289
Total 100.00% 1.72% 100.00% 0.81%
23.598102.7862.347187.63
Name of category of provision for bad debts on a combination basis:
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Provision ratio
Provision for bad debts based
on simplified expected credit 14984623.59 257420.81 1.72%
loss model
Total 14984623.59 257420.81
Explanation on the basis for determining the combination:
At the end of the reporting period the provision for bad debts is made according to the simplified expected credit loss model.
106Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses:
□ Applicable□Not Applicable
(3) Provision for bad debts accrued recovered or reversed for the current period
Provision for bad debts for the current period:
Unit: RMB
Changes in the current period
Beginning
Type Recovery or Ending balancebalance Provision Write-off Others
reversal
Provision for
106074.71151346.100.000.000.00257420.81
bad debts
Total 106074.71 151346.10 0.00 0.00 0.00 257420.81
There was no significant amount of provision for bad debts recovered or reversed during the reporting
period.
(4).Actual write-off of accounts receivable for the current period
There were no accounts receivable with actual write-off during the reporting period.
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract assets
Unit: RMB
Ending balance of
Ratio to the total
provision for bad
Ending balances of amount of ending
Ending balance of debts of accounts
Ending balance of accounts balance of
Entity name accounts receivable and
contract assets receivable and accounts
receivable provision for
contract assets receivable and
impairment of
contract assets (%)
contract assets
Total amount of
the top five
accounts 14067960.83 0.00 14067960.83 93.88% 216562.79
receivables as of
June 30 2025
Total 14067960.83 0.00 14067960.83 93.88% 216562.79
2. Other receivables
Unit: RMB
Item Ending balance Beginning balance
Interest receivable 0.00 0.00
Dividends receivable 0.00 0.00
Other receivables 1053257.66 1534395.80
Total 1053257.66 1534395.80
107Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(1) Other receivables
1) Classification of other receivables by nature of payment
Unit: RMB
Nature of payment Ending book balance Beginning book balance
Transactions with related parties within
26189641.1026189641.10
the consolidation scope
Transactions with external units 14872435.97 15422435.97
Guarantee and deposits 10000.00 10000.00
Others 1406847.65 1365485.79
Total 42478924.72 42987562.86
2) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 1352633.73 15129726.66
1-2 years 13406076.71 273000.00
2 to 3 years 253734.24 2204641.09
Over 3 years 27466480.04 25380195.11
3 - 4 years 7086284.93 10100800.01
4 to 5 years 5100800.01 0.00
Over 5 years 15279395.10 15279395.10
Total 42478924.72 42987562.86
3) Disclosure by provision method for bad debts
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Type debts Book debts Book
Provisio value Provisio value
Amount Ratio Amount Amount Ratio Amount
n ratio n ratio
Provisio
n for bad
debts
accrued
on an
individu
al basis
Provisio
n for bad
424789414256105325429875414531153439
debts 100.00% 97.52% 100.00% 96.43%
24.7267.067.6662.8667.065.80
made by
portfolio
Includin
g:
Provisio 424789 100.00% 414256 97.52% 105325 429875 100.00% 414531 96.43% 153439
108Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
n for bad 24.72 67.06 7.66 62.86 67.06 5.80
debts
based on
credit
risk
characte
ristic
combina
tion
424789414256105325429875414531153439
Total 100.00% 97.52% 100.00% 96.43%
24.7267.067.6662.8667.065.80
Name of category of provision for bad debts on a combination basis:
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Provision ratio
Other receivables with
provision for bad debts based
42478924.7241425667.0697.52%
on credit risk characteristics
combination
Total 42478924.72 41425667.06
Explanation on the basis for determining the combination:
Determined based on aging and customer credit risk.The provision for bad debts made according to the general model of expected credit losses
Unit: RMB
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Provision for bad debts Expected credit losses throughout the duration throughout the duration Total
over the next 12
(without credit (with credit
months
impairment) impairment)
Balance as of January
13711066.342477641.0925264459.6341453167.06
12025
Balance as at January
1 2025 forwarded to
the current period
Provision for the
27500.000.000.0027500.00
current period
Reversal in this period -55000.00 0.00 0.00 -55000.00
Balance as of June 30
13683566.342477641.0925264459.6341425667.06
2025
Basis for division of each stage and ratio of provision for bad debts
None
Changes in the book balance of provision for loss with significant changes in the current period
□Applicable □ Not applicable
It was mainly due to the credit impairment provision for other receivables of Shenzhen Meibainian Garment Co. Ltd. a wholly-
owned subsidiary.
109Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
4) Provision for bad debts accrued recovered or reversed in the current period
Provision for bad debts for the current period:
Unit: RMB
Changes in the current period
Type Beginning balance Recovery or Resale or write- Ending balance
Provision Others
reversal off
Provision for
41453167.0627500.00-55000.000.000.0041425667.06
bad debts
Total 41453167.06 27500.00 -55000.00 0.00 0.00 41425667.06
Reversal or recovery of significant amount of provision for bad debts in the current period:
None.
5) Other receivables actually write-off in the current period
There were no other receivables with actual write-off during the reporting period.
6) Other receivables of the top five ending balances collected by debtor
Unit: RMB
Balance of
Ratio to the total
provision for bad
Entity name Nature of amount Ending balance Aging ending balance of
debts as at the end
other receivables
of the period
Total amount of
Receivables from
the top five Within 1 year 1 -
external entities
accounts 40989401.07 2 years 2 - 3 96.49% 40989401.07
and internal
receivables as of years over 3 years
receivables
June 30 2025
Total 40989401.07 96.49% 40989401.07
7) Reported as other receivables due to centralized fund management
There was no other receivables due to centralized management of funds during the reporting period.
3. Long-term equity investments
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
1962688268.3136826287.641925861980.671962688268.3136826287.641925861980.67
subsidiaries
Investments in
associates and 110948976.97 0.00 110948976.97 114828026.04 0.00 114828026.04
joint ventures
Total 2073637245.28 36826287.64 2036810957.64 2077516294.35 36826287.64 2040690006.71
110Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(1) Investment in subsidiaries
Unit: RMB
Increase/decrease in this period Balance of
Beginning balance Beginning balance Additional Reduced Ending balance provision forInvestees of provision for
(Book value) Provision forimpairment investmen investmen Others (Book value)
impairment as at the
impairment
t t end of the period
Shenzhen SAPO Photoelectric Co.
1910247781.9414415288.090.000.000.000.001910247781.9414415288.09
Ltd.Shenzhen Lisi Industrial
8073388.250.000.000.000.000.008073388.250.00
Development Co. Ltd.Shenzhen Meibainian Garment Co.
0.0022410999.550.000.000.000.000.0022410999.55
Ltd.Shenzhen Shenfang Property
1713186.550.000.000.000.000.001713186.550.00
Management Co. Ltd.Shenzhen Shenfang Sungang
5827623.930.000.000.000.000.005827623.930.00
Property Management Co. Ltd.Total 1925861980.67 36826287.64 0.00 0.00 0.00 0.00 1925861980.67 36826287.64
Investments in associates and joint ventures
Unit: RMB
Beginni Increase/decrease in this period
Balance of
ng
provision
balance
Beginning Investment Adjustme Cash for
Investment of Additi Reduc Provisionprofit or loss nt of other Changes dividends or Ending balancebalance (book onal ed for impairmentunit provisio
value) recognized comprehe in other profits Others
(book value)
n for invest invest impairme
as at the end
under the equity nsive equity declared to be
ment ment nt of theimpairm method income paid period
ent
I. Joint ventures
Shenzhen
Guanhua
Printing and 111555887.28 0.00 0.00 0.00 -3779842.71 0.00 0.00 0.00 0.00 0.00 107776044.57 0.00
Dyeing Co.Ltd.
111Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Sub-total 111555887.28 0.00 0.00 0.00 -3779842.71 0.00 0.00 0.00 0.00 0.00 107776044.57 0.00
II. Associates
Shenzhen
Changlianfa
Printing and 3272138.76 0.00 0.00 0.00 134243.64 0.00 0.00 -233450.00 0.00 0.00 3172932.40 0.00
Dyeing Co.Ltd.Sub-total 3272138.76 0.00 0.00 0.00 134243.64 0.00 0.00 -233450.00 0.00 0.00 3172932.40 0.00
Total 114828026.04 0.00 0.00 0.00 -3645599.07 0.00 0.00 -233450.00 0.00 0.00 110948976.97 0.00
112Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(3) Other notes
None
4. Operating revenue and operating costs
Unit: RMB
Amount in the current period Amount in the previous period
Item
Revenue Cost Revenue Cost
Primary business 37694268.56 5050078.15 37598506.94 4849806.55
Other business 903094.00 684545.01 0.00 0.00
Total 38597362.56 5734623.16 37598506.94 4849806.55
Breakdown of operating revenue and operating costs:
Unit: RMB
Property leasing Total
Contract classification
Operating revenue Operating costs Operating revenue Operating costs
Business type 38597362.56 5734623.16 38597362.56 5734623.16
Including:
Property leasing 38597362.56 5734623.16 38597362.56 5734623.16
Classification by
38597362.565734623.1638597362.565734623.16
business area
Including:
Domestic 38597362.56 5734623.16 38597362.56 5734623.16
Total 38597362.56 5734623.16 38597362.56 5734623.16
Information related to performance obligations:
None.Information related to the transaction prices allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations that have been signed but not performed or not fully
performed yet at the end of the reporting period is RMB0.00 of which RMB0.00 is expected to be recognized as revenue in 2025
RMB0.00 is expected to be recognized in 2026 and RMB0.00 is expected to be recognized in 2027.Major contract change or major transaction prices adjustment of parent company
None.
5. Investment income
Unit: RMB
Item Amount in the current period Amount in the previous period
Income from long-term equity investments under
4200000.001700000.00
cost method
Long-term equity investment income calculated
-3645599.07-4247734.12
under the equity method
Investment income obtained during holding the
3345206.165693129.12
financial assets held for trading
Dividend income from investments in other equity 748000.00 958000.00
113Full text of 2025 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
instrument during the holding period
Total 4647607.09 4103395.00
XIX. Supplementary information
1. Breakdown of current non-recurring profit or loss
Unit: RMB
Item Amount Notes
Mainly the income from disposal of fixed
Profit or loss from disposal of non-current assets 1163586.44
assets.Government subsidies included in the current profit or
loss (except for those that are closely related to the
Company's normal business operations comply with
498899.73 Mainly government subsidies.
national policies and regulations are enjoyed according
to determined standards and have a sustained impact on
the Company's profit or loss)
Profit or loss from changes in fair value of financial
assets and liabilities held by non-financial enterprises and Mainly the gains and losses from changes
profit or loss from the disposal of financial assets and in fair value arising from trading financial
5593507.63
financial liabilities except for effective hedging assets and derivative financial liabilities
operations related to the Company's normal business held by the company.operations
Reversal of provision for impairment of accounts
4371571.58
receivable subject to separate impairment test
Non-operating revenue and expenses other than the Mainly the non-operating income carried
3046216.02
above-mentioned items forward from long-term accounts payable.Less: income tax effects 1610581.15
Affected amount of minority interests (after tax) 3017438.20
Total 10045762.05 --
2. Return on net assets and earnings per share
Earnings per share
Weighted average rate of
Profit in the reporting period
return on net assets Basic earnings per share Diluted earnings per share
(RMB/share) (RMB/share)
Net profit attributable to ordinary
1.19%0.06960.0696
shareholders of the COOEC
Net profits attributable to ordinary
shareholders of the COOEC after 0.85% 0.0497 0.0497
deducting non-recurring profit or loss
114
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