Shenzhen Textile (Holdings) Co. Ltd.The Semi-Annual Report 2023
August 2023I. Important Notice Table of Contents and Definitions
The Board of Directors， the Supervisory Committee the directors the supervisors and executives of theCompany guarantee that there are no significant omissions fictitious or misleading statements carried in the
Report and we will accept individual and joint responsibilities for the truthfulness accuracy and completeness of
the Report.Mr.Yin Kefei The Company leader Mr. He Fei Chief financial officer and the Mr.Huang Min the person in
charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and
completeness of the financial report enclosed in the semi-report.All the directors attended the board meeting for the review of this Report.Concerning the forward-looking statements with future planning involved in the Report they do not constitute a
substantial commitment for investors Investors and related persons shall keep sufficient risk awareness and
shall understand the differences between plans forecasts and commitments and remind investors of investment
risks.The company has the macroeconomic risks market competition risks and raw material risks. Investors are
advised to pay attention to investment risks. For details please refer to the possible risk factors that the company
may face in the X "Risks facing the Company and countermeasures " in the Section III "Management Discussion
& Analysis".The Company has no plan of cash dividends carried out bonus issued and capitalizing of common reserves either.This Report has been prepared in both Chinese and English. In case of any discrepancy the Chinese version shall
prevail.Table of Contents
I.Important Notice Table of contents and Definitions
II. Company Profile & Financial Highlights.III. Management Discussion &Analysis
IV. Corporate Governance
V. Environmental & Social Responsibility
VI. Important Events
VII. Change of share capital and shareholding of Principal Shareholders
VIII. Situation of the Preferred Shares
IX. Corporate Bond
X. Financial ReportDocuments available for inspection
1. Accounting statements bearing the signatures and seals of the Company's legal representative General Manager
Chief Financial officer. and person in charge of the accounting agency.
2. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by
China Securities Regulatory Commission in the report period.The above documents were completely placed at the Office of Secretaries of the Board of Directors of the
Company.Definition
Terms to be defined Refers to Definition
Company/The Company/ Shen Textile Refers to Shenzhen Textile (Holdings) Co. Ltd
Articles of Association Refers to Articles of Association of Shenzhen Textile (Holdings) Co. Ltd
Actual controller / National Assets
Regulatory Commission of Shenzhen Refers to National Assets Regulatory Commission of Shenzhen Municipal
Municipal People's Government People's Government
The Controlling shareholder/ Shenzhen
Investment Holdings Co. Ltd. Refers to Shenzhen Investment Holdings Co. Ltd.Shenchao Technology Refers to Shenzhen Shenchao Technology Investment Co. Ltd.SAPO Photoelectric Refers to Shenzhen SAPO Photoelectric Co. Ltd.Nitto Denko Refers to Nitto Denko Corporation
Beauty Century Refers to Shenzhen Beauty Century Garment Co. Ltd.Shenzhen Xieli Refers to Shenzhen Xieli Automobile Co. Ltd.Hengmei Photoelectric Refers to Hengmei Photoelectric Co. Ltd.Qimei Material Refers to Qimei Material Technology Investment Co. Ltd.Haosheng Danyang Refers to Haosheng（Danyang）Investment Management Co. Ltd.Danyang Nuoyan Refers to Danyang Nuoyan Tianxin Investment Partnership（LP)Xiamen Nuoyan Refers to Xiamen Nuoyan Private Equity Fund Management Co. Ltd
Fuzhou New Investment Refers to Fuzhou NewArea Development & Investment Group Co. Ltd.Hefei Beicheng No.2 Photoelectric industry investment
Hefei Beicheng Refers to
partnership(LP)
Hangzhou Rencheng Refers to Hangzhou Rencheng Trade Partnership(LP)
Shenzhen Xinghe Hard Technology Private Equity Investment
Xinghe Technology Refers to
Fund Partnership (LP)
Lishui Huahui Refers to Lishui Huahui Equity Investment Partnership(LP)
Huzhou Painuo Refers to Huzhou Painuo Huacai Equity Investment Partnership(LP)
Lishui Tengbei Refers to Lishui Tengbei Mingcheng Equity Investment Partnership(LP)
Fuzhou Investment Refers to Fuzhou Investment Management Co. Ltd.Xiamen Zhifeng Refers to Xiamen Zhifeng Equity Investment Partnership(LP)
Jiaxing Painuo Refers to Jiaxing Painuo Xiancai quity Investment Partnership(LP)
Huzhou Zhekuang Refers to Huzhou Zhekuang Equity Investment Partnership(LP)
Guangdong Xingzhi Refers to Guangdong Xingzhi Venture Investment Partnership(LP)
Guangzhou Boyue Refers to Guangzhou Boyue Venture Investment Partnership(LP)
Jinhang Investment Refers to Hangzhou Jinhang Investment Fund Partnership（LP）
Line 4 Refers to T TFT-LCD polarizer II phase Line 4 project
Line 5 Refers to TFT-LCD polarizer II phase Line 5 project
Line 6 Refers to TFT-LCD polarizer II phase Line 6 project
Line 7 Refers to Industrialization project of Polaroid for super large size TV
“CSRC” Refers to China Securities Regulatory Commission
The Report Refers to The Semi-annual Report 2023II. Company Profile & Financial Highlights
I. Company Profile
Stock abbreviation Shen Textile A ShenTextile B Stock code 000045200045
Modified stock ID (if any) No
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 深圳市纺织(集团)股份有限公司
Chinese abbreviation (If any) 深纺织
English name (If any) SHENZHEN TEXTILE(HOLDINGS)CO.LTD
English abbreviation (If any) STHC
Legal Representative Yin Kefei
II. Contact person and contact manner
Board secretary Securities affairs Representative
Name Jiang Peng Li Zhenyu
Contact 6/F Shenfang Building No.3 Huaqiang North Road 6/F Shenfang Building No.3 Huaqiang North Road
address Futian District Shenzhen Futian District Shenzhen
Tel 0755-83776043 0755-83776043
Fax 0755-83776139 0755-83776139
E-mail jiangp@chinasthc.com lizy@chinasthc.com
III. Other
1.Way to contact the Company
Whether registrations address offices address and codes as well as website and email of the Company changed in
reporting period or not
□Applicable □Not applicable
708m Building 8 Qianhai eXCELLENCE fINANCIAL Center(Phase I) nO.5033 Menghai
Registered address
Road Nanshan Street Qianhai Shenzhen-Hongkong Cooperation Zone Shenzhen
Postal code of the Registered
518052
Address
Office Address 6/F Shenfang Building No.3 Huaqiang North Road Futian District Shenzhen
Postal code of the office
518031
address
Internet Web Site http://www.chinasthc.com
E-mail szfzjt@chinasthc.com
2.Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
None of the official presses website and place of enquiry has been changed in the semi report period. For details
please find the Annual Report 2022.
3. Other relevant information
Did any change occur to other relevant information during the reporting period
□ Applicable √ Not applicableIV. Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years
□ Yes √ No
Reporting period Same period of lastyear YoY+/-（%）
Operating income（RMB） 1490095669.55 1445137309.09 3.11%
Net profit attributable to the shareholders of the listed company（RMB） 36307162.97 42433525.10 -14.44%
Net profit after deducting of non-recurring gain/loss attributable
to the shareholders of listed company（RMB） 27687326.61 34970975.47 -20.83%
Cash flow generated by business operation net（RMB） 14402973.60 79438234.59 -81.87%
Basic earning per share(RMB/Share) 0.0717 0.0838 -14.44%
Diluted gains per share(RMB/Share)(RMB/Share) 0.0717 0.0838 -14.44%
Weighted average ROE(%) 1.27% 1.50% -0.23%
As at the end of the As at the end of last
reporting period year YoY+/-（%）
Total assets（RMB） 5672845637.91 5617137367.90 0.99%
Net assets attributable to shareholder of listed company（RMB） 2855413998.04 2849264555.21 0.22%
V. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards.□ Applicable √Not applicable
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report under either foreign
accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.VI.Items and amount of deducted non-current gains and losses
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part for which
assets impairment provision is made) 321.08
Govemment subsidy recognized in current gain and loss(excluding those
closely related to the Company’s business and granted under the state’s 19369307.55
policies)
Other non-business income and expenditures other than the above Mainly for quality-2636193.26
compensation
Less :Influenced amount of income tax 2504189.66
Influenced amount of minor shareholders’ equity (after tax) 5609409.35
Total 8619836.36Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses it is necessary to explain the reason.□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
III. Management Discussion &Analysis
I.Main Business the Company is Engaged in During the Report Period
(I) The development of the industry to which the company belongs
The full name of POL is polarizer which can control the polarization direction of a specific beam and
when natural light passes through the polarizer the light perpendicular to the polarizer transmission axis in the
vibration direction will be absorbed and the transmitted light is only polarized light parallel to the polarizer
transmission axis. The downstream application of polarizer is mainly the panel industry and according to the
different types of panels polarizers are mainly divided into TN type STN type TFT type and OLED type. At
present the global polarizer market is mainly dominated by polarizers for TFT-LCD panels and two polarizers
are required for one LCD panel.The polarizer of the Company's product is one of the key basic materials in the display panel industry and
its demand is largely affected by the fluctuation of the display panel market. In the first half of 2023 affected by
insufficient terminal consumer demand panel manufacturers reduced the purchase of polarizers coupled with
the intense competitive pressure in the polarizer industry the overall sales price of polarizers is lower than the
same period last year. As panel factories continue to adjust their operations and dynamically control production
with the slow recovery of terminal consumer demand the relationship between market supply and demand
gradually flattens the panel price gradually stabilizes and rises and it’s expected that the panel manufacturers'
demand for polarizers will recover to a certain extent.(II)Main Business the Company is Engaged
The company's main business covered such the high and new technology industry as represented by LCD
polarizer its own property management business and the retained business of high-end textile and garment.During the reporting period the Company's main business has not changed significantly. The Company is
actively striving for market orders continuously optimizing the product structure giving priority to orders with
high gross profit and stable sales volume under the condition of meeting the operation of the production line.The sales volume of the Company's polarizer business increased YOY and the Company stabilized the
production while reducing the number of changeovers and through optimization and streamlining of assembly.The second is to strengthen customer management stabilize key customer relations open up new markets
strengthen the OLED-TV market promote the proportion of polarizer products for large-size TVs. The third is
to strengthen supplier management carry out core supplier visits and negotiations actively promote the
localization of materials and continue to promote procurement cost reduction through price negotiation and
new supplier introduction; The fourth is to continue to promote lean management pay attention to production
management and output improvement carry out improvement work such as film breaking problem solution and
site environment improvement focus on improving turnover efficiency in inventory management strengthen
cost management from supply chain negotiation production loss energy consumption etc. to fully promote
cost reduction and efficiency increase. The fifth is to develop and expand OLED-TV series products promote
OLED-mobile phone product performance improvement and certification delivery in terms of the R&D
management. The sixth is to carry out safety inspection safety drills and training strengthen security forces in
safety production management. The seventh is to continue to do well in leasing of its own properties and its
upgrading and transforming work. The eighth is to promote the major asset restructuring matter and actively
promote auditing appraisal due diligence and other work involved in the transaction with relevant parties.
9Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
During the reporting period the Company achieved the operating income of 1.490 billion yuan an increase
of 3.11% YOY; The net profit attributable to shareholders of the listed company was 36307200 yuan down
14.44% YOY. The main reason for the decline in net profit attributable to shareholders of the listed company in
the reporting period compared with the same period of the previous year: In the first half of 2023 affected by
the lack of terminal consumer demand the large competitive pressure in the polarizer industry and the overall
lower sales price of polarizers than the same period last year it’s resulted in a decline in the Company's
performance compared with the same period last year.(III)Main products and their purposes
Currently the Company has 7 mass production lines for polarizers covering TN STN TFT OLED 3D dye
sheet optical film for touch screen and other fields mainly used in TV NB navigator Monitor vehicle
industrial control instruments smart phones wearable devices 3D glasses sunglasses and other products，thecompany has become a mainstream panel company such as Huaxing Optoelectronics BOE Sharp LGD
Shenzhen Tianma Huike etc. by continuously strengthening sales channel expansion and building its own
brand. Qualified suppliers.The Company's main products made in each polarizer production line and their application are as follows:
Line Place Product breadth Planned capacity Main projuct
Line 1 Pingshan 500mm 600，000 m2 TN/STN/ Dye piece
Line 2 Pingshan 500mm 1.2 million m2 TN/STN/CSTN
Line 3 Pingshan 650mm 1 million m2 TFT
Line 4 Pingshan 1490mm 6 million m2 TFT/OLED
Line 5 Pingshan 650mm 2 millin m2 TFT/OLED
Line 6 Pingshan 1490mm 10 million m2 TFT/OLED
Line 7 Pingshan 2500mm 32 millin m2 TFT/OLED
(IV)Company's business model
The polarizer industry has gradually shifted from a traditional business model of R&D production and sales
to a customer-centric joint research and development and comprehensive service business model. By
understanding customer needs joint research and develop manage high-standard production manufacture high-
quality products use advanced polarizer roll and attaching equipment to cooperate with downstream panel
manufacturers' production lines reduce production links reduce production and transportation costs and create
value for customers win-win.(V) Market position of company products
The Company is one of the main polarizer R & D production and sales enterprises in China and has the
production capacity of TFT-LCD polarizer OLED TV polarizer and black and white series polarizer and is a
leading enterprise in the domestic polarizer industry. The Company mainly focuses on medium and large size
polarizer products and has the production capacity of multi-size and multi-series products. The Company's No.
7 line is one of the few ultra-wide polarizer production lines in the world which can meet the needs of the
world's high-generation panel production lines such as 8.5/8.6 generation and 10.5/11 generation especially
matching the 10.5/11 generation line with the best economic production efficiency.(VI) Major factors for driving the Company's performance
10Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
1. Global demand for polarizers maintains a growing trend
According to Omdia research data the total demand for global polarizers is expected to increase from 567
million square meters in 2022 to 669 million square meters in 2026. With the development trend of downstream
panel industry the polarizer industry accelerates its transfer to Chinese Mainland it is estimated that the market
demand for polarizers in Chinese Mainland will increase from 67% in 2022 to 80% in 2026 providing
opportunities for the future development of the company.
2. The polarizer terminal TV market is developing in the direction of large-size and high-end
In the field of TFT-LCD products TV is still the most important product for LCD capacity consumption.From the perspective of downstream panel demand increment the size growth of LCD TV products has become
the main part of LCD incremental demand. According to Omdia research data the average size of TV panels
has steadily increased in recent years. In 2023 the average size of TV panels has exceeded 50 inches. The large-
scale display products are still an important trend in the future development of the industry which is an
important driving force for the growth of polarizer demand and will provide stable incremental demand for the
polarizer market.With the development of the TV market in the direction is large size and high-end the polarizer
manufacturers need to invest in a wider-width production line in order to match the cutting efficiency. After
2018 with the global 10.5-generation production line put-into-production the demand for 43-inch 49-inch 55-
inch 65-inch and other sizes of panels has grown rapidly therefore the market demand for polarizers matching
the corresponding size will grow rapidly. However the polarizer production lines with different widths have
different cutting efficiency for cutting TV panels of different sizes. On the whole the larger the width of the
polarizer production line the more cutting size structure of the product can be adapted the higher the relative
use efficiency and it is more suitable for the trend of large-size panel applications.
3. The Company's own accumulated competitive advantage
For details please refer to "II. Core Competitiveness Analysis" in this chapter.II. Analysis On core Competitiveness
(I) Technology advantages. SAPO Photoelectric is the first domestic national high-tech company which
entered into the R&D and production of the polarizer ，We are one of the largest most technical andprofessional polarizer R&D teams in the country，With more than 20 years of operating experience in thepolarizer industry its products cover mainstream display applications such as TN type STN type TFT type
OLED type etc. and has a complete set of proprietary technology of polarizer that can meet customer needs
and has independent intellectual property rights of various new products. As of the end of the reporting period
SAPO Photoelectric has obtained a total of 101 patent authorizations including 18 domestic invention patents
79 domestic utility model patents and 4 overseas utility model patents. 4 national standards and 2 industry
standards independently drafted and formulated by SAPO Photoelectric are implemented through
examination and approval; In addition 1 industry standard that it participated in the drafting and formulation
passed the approval and implementation. SAPO Photoelectric has three innovation platforms of "Guangdong
Engineering Technology Research Center" "Shenzhen Polarizing Materials and Technology Engineering
Laboratory" and "Shenzhen Enterprise Technology Center" focusing on the research and development and
industrialization of the core production technology of polarizers for LCDs the development and
11Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
industrialization of new products for polarizers for OLEDs and the localization research of raw materials for
polarizer production among which the OLED TV and OLED mobile phone polarizer projects have
successively achieved mass production filling the domestic gap.(II) Talents advantages. The Company pays attention to independent innovation establishes an
efficient R & D management system and has a polarizer management team and the senior technical personnel
team with strong technical ability rich experience and international vision. Through learning and absorbing the
production technology and management concepts of advanced polarizer enterprises meanwhile accumulating
technical experience and improving its core competitiveness through independent innovation the Company
gradually accumulates its own brand technology operation management and other advantages. In the first half
of 2023 the Company continued to deepen market-oriented reform practiced the concept of "Everyone is a
talent not race horses" selected a group of middle-level management cadres with strong professional ability
and rich industry experience and further strengthened the core backbone team; it improved the talent growth
channel and thereserved talent echelon construction mechanism regularly organized and carried out employee
grade evaluation reserve talent pool etc. to help employees grow and develop; and it improved the assessment
incentive mechanism and gave play to the incentive and spurring role of assessment; the Company actively
explored the long-term incentive constraints of the Company's management layer the employee benefit reward
distribution mechanism the employee stock ownership plan etc. to build a value distribution mechanism for
benefit sharing and risk sharing.(III) Market advantages. The Company has a good market customer base at home and abroad
compared with foreign advanced counterparts the biggest advantage of the Company is that it has localized
matching ability that is close to the panel market as well as the strong support from the national industrial
policy. In terms of market demand with the mass production of domestic 10.5/11th generation and other high-
generation TFT-LCD panel production lines the domestic polarizer market demand has also increased; And
with the further acceleration of the development of large-size panels the mainland manufacturers with large-
size polarizer production capacity are ushering in important industry opportunities. In terms of market
development the Company focuses on customer needs constantly optimizes production technology and product
structure improves quality control organically combines production and sales establishes a rapid response
mechanism gives full play to localization advantages and effectively does a good job in point-to-point
professional services. Centering on the overall strategic deployment the Company will promote the verification
of various models form a stable supply chain and continuously increase market share. Meanwhile it will use
the capital market to carry out asset restructuring implement the Company's development strategy and seize
important market opportunities to become better and stronger.(IV) Quality advantages. The company always adhered to the quality policy of "Satisfying customer
demands and pursuing excellent quality" and focused on product quality control. The company strictly controls
product performance indicators standardizes inspection standards for incoming materials starts with quality
improvement and consumption reduction and achieves simultaneous increase in output and quality; through the
introduction of a modern quality management system the products have passed ISO9001 Quality Management
System and ISO14001 Environmental Management System OHSAS18000 Occupational Health and Safety
Management System QCO80000 System Certification; the product is tested by SGS and meets the environmental
protection The company had increased the automatic detecting and marking equipments in the beginning section
and the ending section strictly controlled the product quality and improved the product utilization rate and
product management efficiency.(V) Management advantages. SAPO Photoelectric has accumulated rich management experiences in more than
20 years in the manufacturing of polarizer possessing the home most advanced control technology of the
12Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
production management process of the polarizer and quality management technology and the stable raw
material procurement channel so forth management systems. The company had carried out comprehensive
benchmarking work organized the management personnel to learn advanced experiences from customers and
peers to force the elevation of management ability and drew on the foreign company’s management
experiences of polarizer optimized the company's organizational structure reduced the managerial hierarchy
and further enhanced the company's management efficiency.The Company continues to implement advanced management systems and reasonable incentive
mechanisms improve decision-making efficiency improve market response speed improve R&D reward
system and also realize the in-depth integration of enterprise and employee value to stimulate new vitality of
operation; It formulates the subordinate company's operation improvement work plan sets up a business
improvement working group comprehensively sorts out the company's operation puts forward improvement
suggestions and helps improve the company's production and operation; Through the implementation of the
key work management list of "doing solid party building + lean promoting development" it uses lean means to
reduce costs and increases efficiency; Through the implementation of the "Amoeba Business Model" project
and the dividing of the small independent accounting unit it enables the grassroots backbone employees can
participate in production and operation activities.(VI) Policy advantages. Polarizer is seen as an essential part of the panel display industry and SAPO
Photoelectric in its development has promoted the supply capacity of national polarizers greatly lowered the
dependence of national panel enterprises on imported polarizers It has maintained the security of the national
new display industry played a positive role in enhancing the overall competitiveness of China's new display
industry chain and promoted the coordinated development of the whole industry chain of Shenzhen's "20+8"
ultra-high-definition video display industry cluster. SAPO Photoelectric has passed the identification of national
high-tech enterprises and the polarizer project has been supported by national and provincial policies and city
policies for many times and it enjoys the preferential policy of exemption from tariffs for the import of some
raw materials.III. Main business analysis
General
Refer to relevant contents of “1. Summarization” in “Discussion and Analysis of Management”.Changes in the financial data
In RMB
YOY
This report period Same period last changeyear Cause change（%）
Operating revenue 1490095669.55 1445137309.09 3.11%
Operating cost 1286170472.71 1242988094.06 3.47%
Sale expenses 16439473.30 18355747.39 -10.44%
Administrative
expenses 65299409.82 61448188.86 6.27%
Mainly due to changes in the yen exchange
Financial
expenses 4179495.63 -8833873.44 147.31% rate during the reporting period and the
repayment of long-term borrowings.Income tax Mainly due to the increase in taxable income
expenses 5713017.38 340897.81 1575.87% during the reporting period.R & D Investment 36004188.62 34870992.66 3.25%
Cash flow Mainly due to the recovery of customs
generated by 14402973.60 79438234.59 -81.87% deposits and the incremental tax rebates in the
business same period last year
13Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
operation net
Net cash flow Mainly due to the purchase of wealth
generated by -448360425.07 -43613588.81 -928.03% management products during the reporting
investment period.Net cash flow
generated by Mainly due to the repayment of long-term-94514895.56 9714117.19 -1072.96%
financing borrowings during the reporting period.Net increasing of Mainly due to the YOY increase in
cash and cash -528791098.47 46252547.23 -1243.27% investment amount during the reporting
equivalents period.Major changes in profit composition or sources during the report period
□ Applicable √ Not applicable
The profit composition or sources of the Company have remained largely unchanged during the report period.Component of Business Income
In RMB
This report period Same period last year Increase
Amount Proportion Amount Proportion /decrease
Total operating revenue 1490095669.55 100% 1445137309.09 100% 3.11%
On Industry
Manufacturing 1434002309.89 96.24% 1408495225.98 97.46% 1.81%
Lease and Management
56093359.663.76%36642083.112.54%53.08%
of Property
On Products
Polarizer sheet 1412410148.66 94.79% 1385904291.44 95.90% 1.91%
Textile products 21592161.23 1.45% 22590934.54 1.56% -4.42%
Lease and Management
56093359.663.76%36642083.112.54%53.08%
of Property
Area
Domestic 1427664172.81 95.81% 1354987454.63 93.76% 5.36%
Overseas 62431496.74 4.19% 90149854.46 6.24% -30.75%
Situation of Industry Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
In RMB
Increase/decrea Increase/decrea Increase/decrea
Gross se of revenue in se of business se of gross
Turnover Operation cost profit the same period cost over the profit rate over
rate(%) of the previous same period of the same period
year(%) previous year of the previous(%) year (%)
On Industry
Manufact
1434002309.891274602212.9011.12%1.81%3.68%-1.60%
uring
On Products
Polarizer
1412410148.661253289363.2711.27%1.91%4.02%-1.79%
sheet
Area
Domestic 1427664172.81 1236931349.72 13.36% 5.36% 6.01% -0.53%
Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main
14Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
business based on latest on year’s scope of period-end.□ Applicable √Not applicable
IV. Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Amount Proportion in total Explanation of cause Sustainable (yes orprofit no)
Obtaining equity enterprise dividends
Investment Have the
7743354.69 13.37% contract fees time deposit and money
income sustainability
fund interest income
Impairment of Mainly from the provision of inventory Have the
assets -35512897.29 -61.34% depreciation loss. sustainability
Non-operating
income 401387.79 0.69% Not sustainable.Non-operating
expense 3037581.05 5.25% Mainly for quality compensation Not sustainable.Other income 19369307.55 33.45% Mainly for government subsidies. Have thesustainability
V. Analysis of assets and liabilities
1.Significant changes in asset composition
In RMB
End of Reporting period End of same period of last year Change
As a As a in Reason for significant
Amount percentage of total Amount
percentage percenta change
of total ge(%)
assets(%) assets(%)
Mainly due to the
Monetary fund 616242142.99 10.86% 991789968.19 17.66% -6.80% purchase of wealth
management products
Mainly due to the
Trading financial
613554063.16 10.82% 319605448.44 5.69% 5.13% purchase of wealth
assets
management products
Mainly due to the
Accounts
854907728.96 15.07% 636583469.93 11.33% 3.74% extension of the account
receivable
period of some customers.Mainly due to the lifting
Other receivable 3393141.86 0.06% 10585975.38 0.19% -0.13% of restrictions on
restricted funds.Mainly due the
Inventories 663102543.53 11.69% 558447648.77 9.94% 1.75% preparation of stocks of
materials and goods
Real estate Mainly due to
Investment 121971877.49 2.15% 126315834.76 2.25% -0.10% depreciation.Long-term equity 。Mainly due to changesinvestment 132425526.41 2.33% 134481835.74 2.39% -0.06% in profit and loss
Fixed assets 2240221656.3 Mainly due to2133290574.66 37.61% 39.88% -2.27%
6 depreciation.
Construction in
36543522.560.64%38061619.600.68%-0.04%
process
Right to use assets 16680916.70 0.29% 15365393.88 0.27% 0.02%
Short-term loans 8000000.00 0.14% 7000000.00 0.12% 0.02%
15Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Contract
Liabilities 4975276.30 0.09% 4274109.40 0.08% 0.01%
Long-term loans Mainly due to the557148599.34 9.82% 607421585.00 10.81% -0.99%
repayment of loans.Lease liabilities 10357763.45 0.18% 8628672.71 0.15% 0.03%
2. Major overseas assets
□ Applicable √ Not applicable
3.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Gain/l Cumul Imp
oss on ative airm
fair fair ent
Amount at value value provision Purchased Sold amount
Items chang chang amount in the in the Other Amount atyear e in e s inthe reporting reporting changes year endthe record repo period periodbeginning reporti ed
ng into rting
period equity period
Financial assets
1. Trading
financial(exclud 319605448.4 480000000.0 195000000.0 8948614.7 613554063.1
ing derivative 4 0 0 2 6
financial assets)
4．Other equity 167678283.2 167678283.2
Instrument
Investment 7 7
Subtotal of 487283731.7 480000000.0 195000000.0 8948614.7 781232346.4
financial assets 0.00 0.00 0.001 0 0 2 3
Total 487283731.7 480000000.0 195000000.0 8948614.7 781232346.40.00 0.00 0.00
10023
Financial
Liability 0.00 0.00
Other changes
None
Did great change take place in measurement of the principal assets in the reporting period
□ Yes √ No
4. Restricted asset rights as of the end of this Reporting Period
The restricted assets as at the end of the reporting period are monetary funds notes receivable fixed assets
and intangible assets including:
（1）The restricted monetary funds mainly include the deposit of RMB 4595637.31 for bank drafts and
the principal and interest of RMB265946593.76 for certificates of deposit maturing more than three months
from the date of purchase
(2) Limited fixed assets and intangible assets are mainly subsidiary SAPO photoelectric with its part of self
sustaining property to the bank of communications co. LTD. Shenzhen branch as the lead of syndicated
application for mortgage loans and the company for the mortgage guarantee see the tide of information
16Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
network (http://www.cninfo.com.cn) company on the company for subsidiary bank mortgage guarantee
announcement (2020-19) the announcement of the progress of the company for the subsidiary guarantee (2020-
46).
VI. Analysis on investment Status
1. General
□ Applicable √ Not applicable
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□ Applicable √ Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
There was no investment in securities by the Company in the Reporting period.
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
5.Application of the raised capital
□ Applicable √ Not applicable
The Company had no application of the raised capital in the reporting period.VII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
VIII. Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the
Company
In RMB
Company Typ Main Registered Operating
name e busine capital Total assets Net assets Turnover profit Net Profit
17Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
ss
Produ
Shenzhen ction
SAPO Subs andidiar sales 583333333 4426901283 2982369703 1417425087 42324523. 39107795.Photoelectri y of .00 .06 .22 .50 04 54c Co. Ltd. polari
zer
Produ
ction
of
Shenzhen fully
Beauty Subs electro - -
Century idiar nic 13000000.jacqua 38894981.64 4772163.90 21638637.33 3357160.4 3354455.1Garment y 00rd 3 2Co. Ltd. knittin
g
whole
shape
Dome
Shenzhen stic
Lisi Subs Trade 2360000.0
Industrial idiar Proper 36640494.39 29783754.79 3753060.07 826082.57 833983.260
Co. Ltd. y tymanag
ement
Acco
Shenzhen Subs mmod
Huaqiang idiar ation 10005300.busine 22038970.59 20683064.79 0.00 -104525.92 -105334.38Hotel y 00ss
center;
Shenzhen
Shenfang Subs ProperSungang idiar ty 1606665.6 1503347.8Property manag 1000000 13022423.05 10686351.76 2426642.03 1 4
Managemen y ement
t Co. Ltd.Shenfang Proper
Property Subs
Managemen idiar
ty 1600400.0
manag 13520038.63 8352492.11 7239222.11 548477.45 512134.50y 0t Co. Ltd. ement
Shengtou Subs Sales（HK） idiar of HKD10000polari 6802025.90 6710825.91 0.00 591310.11 591310.11
Co. Ltd. y .00zer
Polari
zer
techno
logy
develo
pment
Shenzhen
Subs privat
Shengjinlian 1000000.0
idiar e 0.00 0.00 0.00 0.00 0.00
Technology 0
y proper
Co. Ltd.ty
leasin
g
proper
ty
manag
ement
18Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
Note：The financial data of SAPO Photoelectric mentioned in the table above are the financial statements data
of its parent company and non-consolidated statements data. Shengtou（HK）Co. Ltd. Shenzhen Shengjinlian
Technology Co. Ltd. are subsidiaries of SAPO Photoelectric.IX．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
X.Risks facing the Company and countermeasures
1. Macro economic risk
The overall domestic economic development is in a recovery trend but the international geopolitical
conflicts continue the Sino-US trade frictions still exist the international economic situation is facing more
uncertainties and the macroeconomic uncertainty and instability has increased significantly. The Company as a
member of the upstream manufacturers of the display product market can not exclude the risk that the
unpredictable macroeconomic fluctuations may affect the Company's performance.Countermeasures: the Company will pay close attention to the economic situation actively study and judge
changes in the macro business environment study national policies and industry trends strengthen the tracking
and analysis of major information in the industry timely grasp the development and change trend of the
industry strengthen the ability of early warning of business risks timely adjust the Company's operation and
management strategies according to the changing market situation. Meanwhile the Company will continue to
optimize the product structure improve the market development ability stimulate the vitality of enterprise
development strengthen internal management control business risks and ensure the steady development of the
Company.
2. Market risk
The polarizer industry is an important part of the development of China's new display industry the demand
for display panels and the development of corresponding technologies are changing with each passing day and
the domestic substitution process of polarizer industry is underway. However with the development of new
display technologies such as ultra-large size display OLED display vehicle display etc. if the Company's
technology and products can not respond to the needs of the application field in time the wide polarizer
products and applications are not as expected or the market competition intensifies leading to a decline in the
price of display products and transmitting the price reduction pressure to upstream polarizer market it will
adversely affect the Company.Countermeasures: In the face of complex market environment the Company will actively promote the
introduction of new product clients improve the product bargaining power and stabilize the customer
confidence; On the other hand it will maintain close communication with customers at all levels pay attention
to product demand dynamics tap into market potential increase market share adhere to technological
innovation improve and optimize the R&D innovation system continuously improve the yield and utilization
rate of production lines and enhance core competitiveness to respond to market risks.
19Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
3. Risk of raw material
The core patents of polarizer terminal materials have high technical barriers and are basically monopolized
by foreign manufacturers. Thus patents are the main reason for limiting the localization of luminescent materials.Currently the key raw materials for manufacturing polarizers PVA film and TAC film are basically monopolized
by Japanese companies and the production line and production technology of upstream supporting raw materials
are constrained by the Japanese side. Compared with the international manufacturer's complete industrial chain
model from upstream raw materials to polarizers to display panels the Company does not have the corresponding
complete industrial support to play the role in industrial integration while the price of major membrane materials
is affected by the supplier's production capacity market demand and the yen exchange rate which influences the
unit cost of the Company's products.Countermeasures: The company will continue to optimize the supply chain system improve the bargaining
power with suppliers increase the R&D of independent intellectual property rights promote the import of low-
cost raw materials actively explore the import substitution of raw materials improve the utilization and maintain
a low level of production loss rate maintain production stability and continuity and reduce product production
costs; If necessary the company can choose exchange rate wealth management products such as forward foreign
exchange and foreign exchange options to avoid excessive exchange losses caused by sharp exchange rate
fluctuations.IV. Corporate Governance
I. Annual General Meeting and Provisional Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Meeting Type Investor Disclosureparticipation ratio Convened date date Index to disclosed information
The First Provision
provisional al March Announcement No.:2023-09
General Meeting General 49.58% March 222023 232023 www.cninfo.com.cn
of 2023 Meeting
Annual General Annual
Meeting of 2022 General
Announcement No.:2023-25
49.57% May 262023 May 272023
Meeting www.cninfo.com.cn
20Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
2. Preferred shareholders with the restoration of voting rights made a request for the Special Meeting of
Shareholders
□ Applicable √ Not applicable
II. Change in shares held by directors supervisors and senior executives
□ Applicable √ Not applicable
The company's directors supervisors and senior managers did not change during the reporting period please
refer to the 2022 annual report
III. Pre-plan for profit allocation and turning capital reserve into share capital for the reporting period
□ Applicable √ Not applicable
The Company planned not to distribute cash dividend and bonus share and not to convert capital reserves into
share capital in half year.IV. Implementation of any equity incentive plan employee stock ownership plan or other incentive
measures for employees
√ Applicable □Not applicable
None
21Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
V. Environmental & Social Responsibility
I. Significant environmental issues
Whether the Company or any of its subsidiaries is identified as a key polluter by the environment authorities
√ Yes □ No
Policies and industry standards related to environmental protection
(I) SAPO Photoelectric:
1. Names of implementation standards for air pollutant emission:
* Emission Standard of Air Pollutants for Coal-burning Oil-burning Gas-fired Boiler (DB44/765-2019);
* Emission Limit of Air Pollutants DB44/ 27—2001;
* The limit value of electronic components in the electronic industry in Tianjin's Emission Control Standard for
Volatile Organic Compounds in Industrial Enterprises (DB12/524-2020) shall be implemented;
* Emission Standards for Odor Pollutants (GB 14554-93) Standard for Fugitive Emission of Volatile Organic
Compounds (GB 37822-2019).
2. Names of implementation standards for water pollutant discharge:
Discharge Limit Standard for Water Pollutants in Guangdong Province (DB44/26-2001)
(II) Beauty Century
1.Regulations of Guangdong Province on Environmental Protection
2.Administrative Measures for Ecological Environment Standards
Environmental protection administrative license
(I) SAPO Photoelectric: The existing sewage discharge permit was applied on December 13 2022 and is valid from
December 13 2022 to December 12 2027.(II) Beauty Century: The existing sewage discharge permit was applied on August 10 2020 and is valid from
August 10 2020 to August 9 2023. (The license renewal has been passed to be notified to get the new certificate).Industrial emission standards and the specific situation of the pollutant emission involved in the production and
business activities
Main
pollut Emissi Exc
Comp ant Main Emissi on Implemen essi
any or and pollutant Verified
subsid specifi and Emissio
on port Emission ted Total ve
c specific n way port distrib concentration pollutant emission
total emis
iary pollut pollutant numbe ution (mg/Nm
3) emission emission(
r condit standards Tons)
sion
name ant name cond
Type ion ition
me
The
Non-
SAPO High- discha
methane
Photo altitude rge
Exhau total 1 <50mg/ 3 120mg/ 3 21.9t/a 49.98t/a No
electri emissio ports m m
st gas hydrocarb
c n are
ons
locate
22Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
d on
the
east
side of
the
roof
of the
No. 1
and
the
No.3
plant
In the
Nullah southe
SAPO
discharg ast
Photo Waste
COD e after side of <20mg/L 40mg/L 3.9347/a 25.0536/a No
electri water
treatmen the
c
t factor
y
GB4287-
2012GB
COD
4287-
ammonia
Atmosp 2012
nitrogen
here:
PH
unorgan Permitted Water
suspended
ized; emission value: pollutant
solids
Wastew PH value: 6-9; discharge
five-day
ater: 1. Anilines: limit
biochemic
Intermitt 1.0mg/L; value
al oxygen
ent Suspended DB44/26-
demand 0.0135t/a
discharg solids: 50mg/L; 2001
total
e Total nitrogen water CODcr:
phosphoru CODcr:
unstable (in N) 15mg/L; pollutant 2.43t/a;
s (noted in Longit 2.43t/a;
and Ammonia discharge Ammonia
P) ude: Ammonia
irregular nitrogen: 8mg/L; standard nitrogen:
chromatici 114°1 nitrogen:
Beaut flow Sulfide: DB44/20 0.27t/a;
ty aniline 5′31.3 0.27t/a;
y Waste during 0.5mg/L; 50-2017 Total
chlorine 1 6″ Total No
Centur water discharg Chemical in Tamsui nitrogen
dioxide Latitu nitrogen
y e but oxygen demand: River and (in N)
sulfide de: (in N)
not 60mg/L; Shima 6.75t/a;
total 22°43′ 6.75t/a;
impact- Chlorine River Total
nitrogen 38.14" Total
type dioxide: Basin phosphoru
(in N) phosphoru
discharg 0.5mg/L; water s (in P)
ammonia s (in P)
e; 2. chromaticity:50; pollution 0.0135t/a
(ammonia 0.0135t/a
Intermitt Five-day discharge
) non-
ent biochemical standard
methane
discharg oxygen demand: GB4287-
total
e stable 20mg/L; Total 2012GB
hydrocarb
flow phosphorus (in 4287-
ons
during P) 0.5mg/L; 2012 in
sulfides
discharg textile
odor
e dyeing
(concentra
and
tion)
finishing
industry
Treatment of contaminants
（I）SAPO Photoelectric
23Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
RTO waste gas regenerative incineration process is adopted for the organic waste gas produced in all production
lines of SAPO Photoelectric and RTO+ advanced treatment process is adopted for Line 7. RTO waste gas
treatment equipment runs stably with good waste gas treatment effect. The removal rate of VOCs in organic
waste gas reaches over 99% which can fully meet the requirements of waste gas discharge. Meanwhile
imported heat storage materials are adopted for the equipment with a heat storage effect of 90% and low
running energy consumption of the equipment; After RTO treatment the waste gas from the production process
after treatment can meet the discharge standard. The wastewater treatment facility of SAPO Photoelectric Phase
I adopts the wastewater treatment process of Fenton + sedimentation + UASB anaerobic + aerobic + MBR
membrane which has strong impact load resistance stable system operation low energy consumption low
maintenance cost high degree of automation and good effluent effect. In phase II it adopts Fenton +
sedimentation + UASB anaerobic + aerobic + MBR membrane + mc membrane treatment + evaporation system
and all the wastewater is recycled to the production line after treatment. All the wastewater of SAPO
Photoelectric can meet the environmental protection requirements after being treated by the treatment facilities.The concentration of VOCs at the discharge port was all controlled at〈40mg/ 3m .SAPO Photoelectric Phase I wastewater treatment facility adopts Fenton + precipitation + UASB anaerobic
+ aerobic + MBR membrane wastewater treatment process which has strong shock load resistance stable
system operation low energy consumption low maintenance and repair costs high degree of automation and
good wastewater treatment effluent effect. The second phase adopts the wastewater treatment process of Fenton
+ precipitation + UASB anaerobic + aerobic + MBR membrane + mc membrane treatment + evaporation
system and all the wastewater is reused to the production line after treatment. All wastewater of SAPO
Photoelectric can meet the environmental protection requirements of standard discharge after treatment in the
facilities and the COD concentration of the total discharge is 20mg/L.（II）Beauty Century
Beauty Century upgraded its wastewater treatment process homogenizing water quality and quantity
hydrolyzing and transforming insoluble complex organic matter further removing pollutants greatly reducing
the CODcr value in wastewater. After being treated by treatment facilities the wastewater can reach the first
level standard for water pollutant discharge in Guangdong Province; Upgrade the sludge discharge treatment
process. After sludge concentration use a sludge wear-resistant pump to drive it to a plate and frame filter press
for mechanical dehydration. The sludge cake is bagged and handed over to a qualified unit for treatment while
the filter press filtrate is left for treatment in a regulating tank. Effectively reducing the concentration of
ammonia nitrogen; Replacing natural gas boilers equipped with low nitrogen burners with natural gas boilers
equipped with low nitrogen burners greatly reduces nitrogen oxide emissions.Emergency plan for sudden environmental events
(I) SAPO Photoelectric
According to the actual situation of the company the emergency plan for sudden environmental incidents has
been compiled and the application for filing the emergency plan for sudden environmental incidents by relevant
departments has been passed.（II）Beauty Century
Some contents from the emergency plan for environmental events are extracted as follows:
Investigation and control measures for hidden dangers of environmental risks
(I) SAPO Photoelectric
Investment in environmental governance and protection in first half 2023: RMB 5.82583 million;
Environmental protection tax paid in first half 2023: RMB ：22899.67.（II）Beauty Century
24Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Investment in environmental governance and protection in first half 2023: RMB 469.52;
Environmental protection tax paid in first half 2023: RMB 228.9967 million.Environmental protection tax paid in 2022: RMB 41352500.Cost of purchasing environmental liability insurance in the first half 2023: RMB 12116.85.Environmental Self-Monitoring Program
（I）SAPO Photoelectric
According to the monitoring requirements issued by the monitoring station and the operation needs of each system
of SAPO Photoelectric the specific monitoring scheme is as follows: organic waste gas 4 times / year (once per
quarter) wastewater discharge 12 times / year (once per month) boiler waste gas 2 times / year (once every six
months) including nitrogen oxides 12 times / year (once a month) canteen oil fume 1 time / year plant boundary
noise 2 times / year (once every six months) drinking water 1 time / year plant boundary waste gas 1 time / year.（II）Beauty Century
According to the environmental management requirements of the sewage discharge permit the specific
monitoring scheme is as follows: automatic detection of wastewater pH value flow COD and ammonia
nitrogen 1 time/day for chromaticity suspended solids total nitrogen and total phosphorus five-day
biochemical oxygen demand 1 time/week sulfide aniline 1 time/month chlorine dioxide 1 time/year plant
boundary ammonia non-methane total hydrocarbons sulfide odor concentration 1 time/half a year.Administrative penalties for environmental problems during the reporting period
Name of company or subsidiRareyasons foVr Impact on the production and operationCoofmpany's rectificationpunishment iolation situation Penalty result listed companies measures
SAPO Photoelectric No No No No No
Beauty Century No No No No No
Other Environmental Information That Should Be Disclosed
(I)SAPO Photoelectric
Annual report on disclosure of enterprise environmental information according to law: https://www-
app.gdeei.cn/stfw/index
Annual implementation report of pollutant discharge permit: http://permit.mee.gov.cn/
(II)Beauty Century
None
Measures taken to reduce its carbon emissions during the reporting period and their effects
□Applicable □Not applicable
(I) SAPO Photoelectric
1. The control of the air conditioning water system in the factory area is optimized and by modifying the
central control automatic control program the starting temperature of the original cooling tower fan is changed
from >28°C to >21°C ; Outdoor temperature greater than 23 °C and dew point greater than 14 °C belongs to the
summer mode the chilled water outlet temperature is generally set to 7 °C it can see the dehumidification
status of the end air conditioning unit improve the chilled water gradual outlet temperature setting can set in
the range of 7-9 °C; the outdoor temperature less than 23 °C and dew point greater than 14 °C belongs to the
25Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
transition mode the freezer load less than 60% and chilled water return temperature is lower than 12 °C
gradually increase the chilled water outlet temperature setting it can set range in 8-10 °C; the outdoor
temperature less than 23 °C and the dew point is less than 14 °C belongs to the winter mode when the freezer
load is less than 60% and the chilled water return water temperature is lower than 12 °C the chilled water outlet
temperature setting is gradually increased and the range can be set in 8-10 °C. In the first half of 2023 a total
of 508700 yuan of electricity costs were saved.
2. Adjust energy saving for air conditioning at production line shutdown and formulate energy-saving
adjustment plan for air conditioning for production and shutdown according to the shutdown and start-up plan
of the production line; After the production line liaisons the air conditioner energy saving adjustment is carried
out and the adjustment time is recorded every day to calculate the energy saving benefits; In the first half of
2023 a total of 331100 yuan of electricity costs were saved.（II）Beauty Century
Through the implementation of cleaner production solutions it’s estimated to save 15870m3/a of water;
save electricity 17525kwh/a; save 213200 m3 of natural gas consumption; reduce wastewater discharge by
9870m3/a; reduce raw material consumption by 12.59 tons/year; save about 8000 sheets of paper per year;
reduce NOx emissions by 121.9kg/a; reduce sulfur dioxide emissions by 33.26kg/a; reduce COD emissions by
0.28t/a; reduce ammonia nitrogen emissions by 0.055t/a and reduce total nitrogen emissions by 0.83t/a.
Other Environmental Related Information
None
II. Social responsibilities
During the reporting period the Company earnestly fulfilled its social responsibilities actively participated
in the consumption assistance work completed the procurement of 534900 yuan of consumption assistance
and helped the comprehensive revitalization of the countryside with practical actions.
26Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
VI. Important Events
I. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of
the reporting period made by the company shareholder actual controller acquirer director supervisor
senior management personnel and other related parities.√ Applicable □ Not applicable
Time of Period
making
Com of FulfillmCommitmen commitmentmitme Type Contents commit ent
nt t maker ment
As Shenzhen Investment Holdings Co. Ltd. the controlling
shareholder of the company committed when the restricted-for-sale
shares from the shares restructuring were listed for circulation in
Comm Shenzhen Share the market: i. if they plan to sell the shares through the securities Sustaiitment Investmen reduct exchange system in the future and the decrease of the shares they Augus ned Underon t Holdings ion hold reaches 5% within 6 months after the first decrease they will t 4 and Fulfillshare Co. Ltd. comm disclose an announcement indicating the sale through the company 2006 effecti mentreform itment within two trading days before the first decrease; ii. They shall vestrictly observe the “Guidelines on Transfer of Restricted-for-saleOriginal Shares of Listed Companies” and the provisions of the
relevant business principles of Shenzhen Stock Exchange.Commitments made during asset restructuring: 1. The relevant
information provided by the Company during this transaction is
authentic accurate and complete and it is guaranteed that there are
no false records misleading statements or major omissions and the
Company will bear individual and joint legal responsibilities for the
authenticity accuracy and completeness of the information
State provided. If there are false records misleading statements or major
ment omissions in the information provided which cause losses to the
and company or investors the Company will be liable for
Comm compensation according to law; 2. The Company will submit
itment relevant information documents and materials (including but not
on the limited to original written materials electronic materials duplicate
Authe materials and oral testimony) required for this transaction to
Comm
nticity relevant intermediaries in a timely manner and at the same time it
itment
promises that the information and documents provided are
made Dece Sustai
Accur authentic complete and accurate the relevant duplicate materials
upon The mber ned Under
acy or photocopies are consistent with the original all signatures and and Fulfill
the Company 3020
and seals on the documents are authentic and valid and the photocopies effecti ment
assets 22
Compl are consistent with the original and the signatories of these ve
replac
etenes documents have legally authorized and effectively signed the
ement
s of documents and that there are no false records misleading
the statements or major omissions; 3. The Company guarantees the
Infor authenticity and rationality of the relevant data quoted in this
matio transaction plan. As of the signing date of this transaction plan the
n audit and evaluation related to this transaction have not been
Provid completed. The audited financial data evaluation or valuation
ed results of the underlying assets and the audited profit forecast data
(if involved) will be disclosed in the Restructuring Report. The
audited financial data of the underlying assets may be quite
different from the disclosure of the plan; 4. During this transaction
the Company will timely disclose information about this
transaction in accordance with relevant laws and regulations and
relevant regulations of China Securities Regulatory Commission
27Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
and Shenzhen Stock Exchange and guarantee the authenticity
accuracy and completeness of such information.Commitments made during asset restructuring:
1. The relevant information provided by me during this transaction
is authentic accurate and complete and it is guaranteed that there
are no false records misleading statements or major omissions and
I will bear individual and joint legal responsibilities for the
authenticity accuracy and completeness of the information
provided. If there are false records misleading statements or major
omissions in the information provided which cause losses to the
company or investors I will be liable for compensation according
to law. 2. I will submit relevant information documents and
materials (including but not limited to original written materials
electronic materials duplicate materials and oral testimony)
required for this transaction to the company and relevant
intermediaries in a timely manner and at the same time I promise
State that the information and documents provided are authentic
ment complete and accurate the relevant duplicate materials or
and photocopies are consistent with the original all signatures and seals
Comm on the documents are authentic and valid and the photocopies are
itment consistent with the original and the signatories of these documents
on the have legally authorized and effectively signed the documents and
Authe that there are no false records misleading statements or major
Comm All the
nticity omissions. 3. During this transaction I will timely disclose
itment directors
information about this transaction in accordance with relevant laws
made supervisor Dece Sustai
Accur and regulations and relevant regulations of China Securities
upon s and mber ned Under
acy Regulatory Commission and Shenzhen Stock Exchange and and Fulfill
the senior 3020
and guarantee the authenticity accuracy and completeness of such effecti ment
assets managers 22
Compl information. 4. If this transaction is investigated by the judicial ve
replac of the
etenes authorities or by the China Securities Regulatory Commission
ement company
s of because of false records misleading statements or major omissions
the in the information provided or disclosed by me I will suspend the
Infor transfer of the shares in the company before the conclusion of the
matio case investigation is determined and submit a written application
n for suspension of the transfer and the stock account to the board of
Provid directors of the company within two trading days after receiving
ed the notice of filing the investigation and the board of directors of
the company will apply to the Shenzhen Stock Exchange and
Shenzhen Branch of China Securities Depository and Clearing Co.Ltd. (hereinafter referred to as "CSDC") for locking; If the
application for locking is not submitted within two trading days
the board of directors of the company is authorized to directly
submit my identity information and account information to
Shenzhen Stock Exchange and CSDC after verification and apply
for locking; If the board of directors of the listed company fails to
submit my identity information and account information to
Shenzhen Stock Exchange and CSDC Shenzhen Stock Exchange
and CSDC are authorized to directly lock the relevant stocks. If any
violation of laws and regulations is found during the investigation
I promise to lock in the shares and voluntarily use them for
compensation arrangements of relevant investors.All the State Commitments made during asset restructuring:
Comm directors ment 1. There are no false records misleading statements or major
itment Dece Sustaisupervisor and omissions in the application documents for this transaction; 2. The
made mber ned Unders and Comm rights and interests of the listed company are not seriously and Fulfill
upon 3020senior itment damaged by the controlling shareholder or actual controller and effecti ment
the 22managers on No have not been eliminated; 3. The listed company and its ve
assets of the Illegal subsidiaries do not provide external guarantees in violation of
28Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
replac company Acts regulations and have not been lifted; 4. The listed company's
ement financial statements for the latest year and the first stage have no
audit reports with qualified opinions negative opinions or
disclaimer of opinions issued by certified public accountants; 5.The listed company and its current directors supervisors and senior
managers have not been subjected to administrative punishment by
the China Securities Regulatory Commission in the last 36 months
and nor have they been publicly condemned by the stock exchange
or found with other major acts of dishonesty in the last 12 months;
6. The listed company and its current directors and senior managers
have not been investigated by the judicial authorities for suspected
crimes or by the China Securities Regulatory Commission for
suspected violations of laws and regulations including but not
limited to receiving or foreseeing the decision/notice of filing
investigation by the judicial authorities the notice of filing
investigation by the China Securities Regulatory Commission and
its dispatched institutions and the advance notice of administrative
punishment and there is no administrative punishment (except
those obviously unrelated to the securities market) or criminal
punishment; 7. The listed company has no other circumstances that
seriously damage the legitimate rights and interests of investors and
social public interests; 8. The directors supervisors and senior
managers of the listed company do not disclose the relevant inside
information of this transaction and use the inside information for
insider trading.Expla
nation
on the
Absen
ce of
the
Circu
mstan
ces
Stipul
ated in
Articl
Commitments made during asset restructuring:
e 13
Comm All the The listed company its directors supervisors senior managers and
of the
itment directors the enterprises controlled by the above-mentioned entities have not
Guida
made supervisor been placed on file for investigation on suspicion of insider trading Dece Sustai
nce on
upon s and related to this transaction; In the last 36 months they have not been mber ned Under
Super and Fulfill
the senior punished by the China Securities Regulatory Commission or 3020
vision effecti ment
assets managers investigated by the judicial organs for criminal responsibility 22
of ve
replac of the according to law for insider trading related to major asset
Listed
ement company restructuring of listed companies which does not allow them to
Comp
participate in any major asset restructuring of listed companies.anies
No.7 -
Super
vision
of
Abnor
mal
Tradin
g of
Stocks
Relate
d to
29Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Major
Asset
Restru
cturin
g of
Listed
Comp
anies.Expla
Comm All the nation
itment directors on
made supervisor Wheth Commitment made during asset restructuring: From the date of Dece Sustai
upon s and er resumption of trading to the completion of this transaction if I hold mber ned Underand Fulfill
the senior There shares of the listed company I have no plans to reduce the shares of 3020 effecti ment
assets managers is a the listed company. 22 ve
replac of the Reduc
ement company tion
Plan
Commitment made during asset restructuring: 1. The relevant
information provided by the Company during this transaction is
authentic accurate and complete and it is guaranteed that there are
no false records misleading statements or major omissions and the
Company will bear individual and joint legal responsibilities for the
authenticity accuracy and completeness of the information
provided. If there are false records misleading statements or major
omissions in the information provided which cause losses to the
listed company or investors the Company will be liable for
compensation according to law; 2. The Company will submit
State
relevant information documents and materials (including but not
ment
limited to original written materials electronic materials duplicate
and
materials and oral testimony) required for this transaction to the
Comm
listed company and relevant intermediaries in a timely manner and
itment
at the same time it promises that the information and documents
on the
provided are authentic complete and accurate the relevant
Authe
Comm duplicate materials or photocopies are consistent with the original
nticity
itment all signatures and seals on the documents are authentic and valid
made Shenzhen and the photocopies are consistent with the original and the Dece Sustai
Accur
upon Investmen signatories of these documents have legally authorized and mber ned Under
acy and Fulfill
the t Holdings effectively signed the documents and that there are no false 3020
and effecti ment
assets Co. Ltd. records misleading statements or major omissions; 3. During this 22
Compl ve
replac transaction the Company will timely disclose information about
etenes
ement this transaction in accordance with relevant laws and regulations
s of
and relevant regulations of China Securities Regulatory
the
Commission and Shenzhen Stock Exchange and guarantee the
Infor
authenticity accuracy and completeness of such information;4. If
matio
this transaction is investigated by the judicial authorities or by the
n
China Securities Regulatory Commission because of false records
Provid
misleading statements or major omissions in the information
ed
provided or disclosed by the Enterprise the Enterprise will suspend
the transfer of shares with interests in the listed company and
submit the written application for suspension of transfer and the
stock account to the board of directors of the listed company within
two trading days after receiving the notice of filing the
investigation and the board of directors of the listed company will
apply to the Stock Exchange and the Depository and Clearing
Company for locking on its behalf; If the application for locking is
not submitted within two trading days the board of directors of the
listed company shall be authorized to directly submit the identity
30Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
information and account information of the Enterprise to the Stock
Exchange and the Depository and Clearing Company after
verification and apply for locking; If the board of directors of the
listed company fails to submit the identity information and account
information of the Enterprise to the Stock Exchange and the
Depository and Clearing Company the Stock Exchange and the
Depository and Clearing Company are authorized to directly lock
the relevant shares. If any violation of laws and regulations is
found during the investigation the Enterprise promises to lock in
the shares and voluntarily use them for compensation arrangements
of relevant investors.Commitment made during asset restructuring: 1. The Company has
not been subjected to administrative punishment (except those
obviously unrelated to the securities market) or criminal
punishment in the last three years; 2. The Company is in good
Comm Comm
credit with no public condemnation by the stock exchange or other
itment itment
major dishonesty in the last 12 months; In the last three years the
made Shenzhen on Dece Sustai
Company has not been placed on file for investigation by the
upon Investmen Compl mber ned Under
judicial authorities for suspected crimes or by the China Securities and Fulfill
the t Holdings iance 3020
Regulatory Commission for suspected violations of laws and effecti ment
assets Co. Ltd. and 22
regulations; 3. The Company does not disclose the relevant inside ve
replac Integri
information of this transaction or use the inside information for
ement ty
insider trading; 4. The Company does not infringe the rights and
interests of the listed company; 5. The Company guarantees that it
is willing to bear corresponding legal responsibilities if it violates
the above statements and commitments.Expla
nation
on the
Absen
ce of
the
Circu
mstan
ces
Stipul
ated in
Articl Commitment made during asset restructuring: Shenzhen
Comm e 13 Investment Holdings and all its directors supervisors senior
itment of the managers and the enterprises controlled by the above-mentioned
made Shenzhen Guida entities have not been placed on file for investigation due to insider Dece Sustai
upon Investmen nce on trading related to major asset restructuring; In the last 36 months mber ned Underand Fulfill
the t Holdings Super they were not subjected to administrative punishment imposed by 3020 effecti ment
assets Co. Ltd. vision China Securities Regulatory Commission or investigated for 22 ve
replac of criminal responsibility by judicial organs according to law which
ement Listed does not allow them to participate in any major asset restructuring
Comp of listed companies.anies
No.7 -
Super
vision
of
Abnor
mal
Tradin
g of
Stocks
Relate
31Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
d to
Major
Asset
Restru
cturin
g of
Listed
Comp
anies
Expla
Comm nation
itment on
made Shenzhen Wheth Commitment made during asset restructuring: During the period Dece Sustai
upon Investmen er from the date of resumption of this restructuring to the completion mber ned Underand Fulfill
the t Holdings There of this restructuring the Company has no plans to reduce the shares 3020 effecti ment
assets Co. Ltd. is a of listed company. 22 ve
replac Reduc
ement tion
Plan
Commitment made during asset restructuring: 1. The relevant
information provided by the Enterprise during this transaction is
authentic accurate and complete and it is guaranteed that there are
Qimei
no false records misleading statements or major omissions and the
Material
Enterprise will bear individual and joint legal responsibilities for
Haosheng
the authenticity accuracy and completeness of the information
Danyang
provided. If there are false records misleading statements or major
Danyang
omissions in the information provided which cause losses to the
Ruoyan
listed company or investors the Enterprise will be liable for
Xiamen
State compensation according to law; 2. The Enterprise will submit
Ruoyan
ment relevant information documents and materials (including but not
Fuzhou
and limited to original written materials electronic materials duplicate
Xintou
Comm materials and oral testimony) required for this transaction to the
Hefei
itment listed company and relevant intermediaries in a timely manner and
Beicheng
on the at the same time it promises that the information and documents
Hangzhou
Authe provided are authentic complete and accurate the relevant
Comm Rencheng
nticity duplicate materials or photocopies are consistent with the original
itment Xinghe
all signatures and seals on the documents are authentic and valid
made Technolog Dece Sustai
Accur and the photocopies are consistent with the original and the
upon y lishui mber ned Under
acy signatories of these documents have legally authorized and and Fulfill
the Huahui 3020
and effectively signed the documents and that there are no false effecti ment
assets Huzhou 22
Compl records misleading statements or major omissions; 3. The ve
replac Painuo
etenes Enterprise guarantees that it has fulfilled its statutory disclosure
ement Lishui
s of and reporting obligations on this transaction and there are no
Tengbei
the contracts agreements arrangements or other matters that should be
Fuzhou
Infor disclosed but not disclosed. The Enterprise is aware of the possible
Investmen
matio legal consequences of the above commitments and will bear
t Xiamen
n corresponding legal responsibilities for acts that violate the above
Zhifeng
Provid commitments; 4. If this transaction is investigated by the judicial
Jiaxing
ed authorities or by the China Securities Regulatory Commission
Painuo
because of false records misleading statements or major omissions
Huzhou
in the information provided or disclosed by the Enterprise the
Zhekuang
Enterprise will suspend the transfer of shares with interests in the
Guangdon
listed company and submit the written application for suspension
g Xingzhi
of transfer and the stock account to the board of directors of the
Guangzho
listed company within two trading days after receiving the notice of
u Boyue
filing the investigation and the board of directors of the listed
company will apply to the Stock Exchange and the Depository and
Clearing Company for locking on its behalf; If the application for
32Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
locking is not submitted within two trading days the board of
directors of the listed company shall be authorized to directly
submit the information and account information of the Enterprise to
the Stock Exchange and the Depository and Clearing Company
after verification and apply for locking; If the board of directors of
the listed company fails to submit the information and account
information of the Enterprise to the Stock Exchange and the
Depository and Clearing Company the Stock Exchange and the
Depository and Clearing Company are authorized to directly lock
the relevant shares. If any violation of laws and regulations is
found during the investigation the Enterprise promises to lock in
the shares and voluntarily use them for compensation arrangements
of relevant investors.Commitment made during asset restructuring: 1. The penalties
regulatory measures or disciplinary actions suffered by the
Enterprise and its key management personnel in the last five years
are as follows: (1) Mr. Chen Rongsheng the executive director of
the Enterprise received the Decision on Taking Measures to Issue
Warning Letters to Cai Xiaoru Chen Rongsheng Liu Tieying and
Han Yang issued by Fujian Supervision Bureau of China Securities
Regulatory Commission (Decision onAdministrative Supervision
Measures of Fujian Supervision Bureau of China Securities
Regulatory Commission [2020] No.6) on January 14 2020 due to
the failure of Fuzhou Dahua Intelligent Technology Co. Ltd. where
he served as the general manager to disclose in time the progress of
major equity transfer and the breach of contract for failure to pay
off major debts due the conclusion of important contracts and the
insufficient basis for impairment of available-for-sale financial
assets; (2) Mr. Chen Rongsheng the executive director of the
Enterprise received the Decision on Giving informed criticism to
Fuzhou Dahua Intelligent Technology Co. Ltd. and Related Parties
issued by Shenzhen Stock Exchange (SZS [2019] No.311) on May
Comm Comm
29 2019 due to the failure Fuzhou Dahua Intelligent Technology
itment itment
Co. Ltd. where he served as the general manager to reply to the
made on Dece Sustai
Shenzhen Stock Exchange's inquiry and make disclosure within the
upon Haosheng Compl mber ned Under
prescribed time limit as required. In addition to the above and Fulfill
the Danyang iance 3020
circumstances the Enterprise and its main management personnel effecti ment
assets and 22
have not been subjected to other criminal penalties or ve
replac Integri
administrative penalties (except those obviously unrelated to the
ement ty
securities market) administrative supervision measures by the
China Securities Regulatory Commission or disciplinary actions by
the stock exchange in the last five years and there is no major civil
litigation or arbitration related to economic disputes; 2. In the last
five years the Enterprise has not been investigated by the judicial
authorities for suspected crimes or by the China Securities
Regulatory Commission for suspected violations of laws and
regulations; 3. The Enterprise and its main management personnel
in the last five years had no failure to repay large debts or to fulfill
their commitments; 4. The Enterprise and its main management
personnel have not disclosed the relevant insider information of
this transaction or used the insider information for insider trading;
5. The Enterprise has none of the following circumstances: (1) It
has a large amount of debt which is not paid off at maturity and is
in a continuous state; (2) It has major illegal acts or suspected
major illegal acts in the last 3 years; (3) It has serious acts of
dishonesty in the securities market in the last 3 years; (4) Other
circumstances stipulated by laws and administrative regulations
and determined by China Securities Regulatory Commission that it
33Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
is not allowed to acquire listed companies.Commitment made during asset restructuring: 1. The penalties
regulatory measures or disciplinary actions imposed on the
Enterprise and its main management personnel in the last five years
are as follows: (1) Ms. Zhang Qiuli received the Decision on
Administrative Punishment of China Securities Regulatory
Commission (for Li Shengkai and Zhang Qiuli of Fujian Daochong
Investment Management Co. Ltd.) ([2019] No. 2) issued by China
Securities Regulatory Commission on January 18 2019 due to the
manipulation of securities market by Fujian Daochong Investment
Management Co. Ltd. where she served as the general manager
and executive director; (2) On March 31 2020 Ms. Zhang Qiuli
received the Decision on Administrative Punishment of China
Securities Regulatory Commission (for Li Shengkai and Zhang
Qiuli of Fujian Daochong Investment Management Co. Ltd.)
([2020] No.11) issued by China Securities Regulatory Commission
due to the reported and undisclosed excessive shareholding in
Jianyan Group and restricted trading behavior of Fujian Daochong
Investment Management Co. Ltd. where she served as the general
Comm Comm
manager and executive director. In addition to the above
itment itment
circumstances the Enterprise and its main management personnel
made on Dece Sustai
have not been subjected to other criminal penalties or
upon Hangzhou Compl mber ned Under
administrative penalties (except those obviously unrelated to the and Fulfill
the Rencheng iance 3020
securities market) in the last five years and there is no major civil effecti ment
assets and 22
litigation or arbitration related to economic disputes; 2. In the last ve
replac Integri
five years the Enterprise has not been investigated by the judicial
ement ty
authorities for suspected crimes or by the China Securities
Regulatory Commission for suspected violations of laws and
regulations; 3. The Enterprise and its main management personnel
had no failure to repay large debts or to fulfill their commitments
and were not subjected to administrative supervision measures by
the China Securities Regulatory Commission or disciplinary
punishment by the stock exchange in the last five years; 4. The
Enterprise and its main management personnel have not disclosed
the relevant insider information of this transaction or used the
insider information for insider trading; 5. The Enterprise has none
of the following circumstances: (1) It has a large amount of debt
which is not paid off at maturity and is in a continuous state; (2) It
had major illegal acts or suspected major illegal acts in the last 3
years; (3) It had serious acts of dishonesty in the securities market
in the last 3 years; (4) Other circumstances stipulated by laws and
administrative regulations and determined by China Securities
Regulatory Commission that it is not allowed to acquire listed
companies.Qimei Commitment made during asset restructuring: The Enterprise and
Material its main management personnel have not been subjected to criminal
Danyang penalties or administrative penalties (except those obviously
Comm Nuoyan Comm unrelated to the securities market) in the last five years and there is
itment Xiamen itment no major civil litigation or arbitration related to economic disputes;
made Nuoyan on 2. In the last five years the Enterprise has not been investigated by Dece Sustai
upon Fuzhou Compl the judicial authorities for suspected crimes or by the China mber ned Underand Fulfill
the Xintou iance Securities Regulatory Commission for suspected violations of laws 3020 effecti ment
assets Hefei and and regulations; 3. The Enterprise and its main management 22 ve
replac Beicheng Integri personnel had no failure to repay large debts or to fulfill their
ement Xinghe ty commitments and were not subjected to administrative supervision
Technolog measures by the China Securities Regulatory Commission or
y Lishui disciplinary actions by the stock exchange in the last five years; 4.Huahui The Enterprise and its main management personnel have not
34Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Huzhou disclosed the relevant insider information of this transaction or
Painuo used the insider information for insider trading; 5. The Enterprise
Lishui has none of the following circumstances: (1) It has a large amount
Pengbei of debt which is not paid off at maturity and is in a continuous
Fuzhou state; (2) It had major illegal acts or suspected major illegal acts in
Investmen the last 3 years; (3) It had serious acts of dishonesty in the
t Xiamen securities market in the last 3 years; (4) Other circumstances
Zhifeng stipulated by laws and administrative regulations and determined
Jiaxing by China Securities Regulatory Commission that it is not allowed
Painuo to acquire listed companies.Huzhou
Zhekuang
Guangdon
g Xingzhi
Guangzho
u Boyue
Expla
nation
on the
Absen
Qimei
ce of
material
the
Haosheng
Circu
Danyang
mstan
Danyang
ces
Nouyan
Stipul
Xiamen
ated in
Nouyan
Articl
Fuzhou
e 13
Xintou
of the
Hefei
Guida Commitment made during asset restructuring: The Enterprise and
Beicheng
nce on its main management personnel (including directors supervisors
Hangzhou
Super and senior management personnel in the case of a company; or
Comm Rencheng
vision executive partners and key management personnel in the case of a
itment Xinghe
of partnership) the controlling shareholder and actual controller of the
made Technolog Dece Sustai
Listed Enterprise and the enterprises controlled by the above-mentioned
upon y Lishui mber ned Under
Comp entities have not been placed on file for investigation due to insider and Fulfill
the Huhui 3020
anies trading related to major asset restructuring; In the last 36 months effecti ment
assets Huzhou 22
No.7 - they were not subjected to administrative punishment imposed by ve
replac Painuo
Super China Securities Regulatory Commission or investigated for
ement Lishui
vision criminal responsibility by judicial organs according to law which
Tengbei
of does not allow them to participate in any major asset restructuring
Fuzhou
Abnor of listed companies.Investmen
mal
t Xiamen
Tradin
Zhifeng
g of
Jiaxing
Stocks
Painuo
Relate
Huzhou
d to
Zhekuang
Major
Guangdon
Asset
g Xingzhi
Restru
Guangzho
cturin
u Boyue
g of
Listed
Comp
anies
35Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Qimei
material
Haosheng Commitment made during asset restructuring: 1. The Enterprise
Danyang legally owns the corresponding shares of the target company and
Danyang its capital contribution to the target assets has been fully paid and
Nouyan there is no false capital contribution or withdrawal of capital
Xiamen contribution and the Enterprise has complete ownership of the
Nouyan target assets with no other circumstances that may affect the legal
Fuzhou existence of the target company; 2. The Enterprise is the ultimate
Xintou and true owner of the underlying assets and the ownership of the
Hefei underlying assets is clear with no dispute and there are no
Beicheng circumstances of holding the underlying assets by means of trust
Hangzhou entrusting others or accepting others' entrustment; The underlying
Expla
Comm Rencheng assets are not in custody with no pledge mortgage lien and other
nation
itment Xinghe security rights or other third-party rights or other terms or
on the
made Technolog agreements restricting transfer signed and no dispute or potential Dece Sustai
Owner
upon y Lishui dispute. The underlying assets have not been sealed up or frozen by mber ned Under
ship and Fulfill
the Huhui administrative or judicial organs and there are no other restrictions 3020
of the effecti ment
assets Huzhou or prohibitions on transfer. The Enterprise guarantees that the 22
Under ve
replac Painuo above-mentioned state will continue until the transfer of the
lying
ement Lishui underlying assets to the name of the listed company or until the
Assets
Tengbei date of termination of this transaction (whichever is earlier); 3. The
Fuzhou Enterprise promises to change the ownership of the underlying
Investmen assets in a timely manner according to the agreement after the
t Xiamen relevant agreement of this transaction comes into effect and all the
Zhifeng responsibilities arising from disputes caused by the Enterprise in
Jiaxing the process of ownership change shall be borne by the Enterprise;
Painuo 4. The ownership of the above-mentioned underlying assets to be
Huzhou transferred by the Enterprise has none of unresolved or foreseeable
Zhekuang disputes such as litigation and arbitration and the responsibilities
Guangdon arising from disputes such as litigation and arbitration shall be
g Xingzhi borne by the Enterprise.Guangzho
u Boyue
Commitment made during asset restructuring: 1. The Enterprise
legally owns the corresponding shares of the target company and
its capital contribution to the target assets has been fully paid and
there is no false capital contribution or withdrawal of capital
contribution and it has complete ownership of the target assets and
there is no other circumstances that may affect the legal existence
of the target company; 2. The Enterprise is the ultimate and true
owner of the underlying assets and the ownership of the
Expla
Comm underlying assets is clear with no dispute and there are no
nation
itment circumstances of holding the underlying assets by means of trust
on the
made entrusting others or accepting others' entrustment; Except for the Dece Sustai
Owner
upon Haosheng pledge of 267857146 shares of the underlying company held by mber ned Under
ship and Fulfill
the Danyang the enterprise the remaining underlying assets held by the 3020
of the effecti ment
assets enterprise are not in custody with no pledge mortgage lien and 22
Under ve
replac other security rights or other third-party rights or other terms or
lying
ement agreements restricting transfer signedand no dispute or potential
Assets
dispute. The underlying assets have not been sealed up or frozen by
administrative or judicial organs and there are no other restrictions
or prohibitions on transfer. The Enterprise guarantees to release the
aforementioned equity pledge before the board meeting of the
listed company deliberates the report (draft) of this restructuring
and to maintain this state after the pledge is released until the target
assets are transferred to the name of the listed company or until the
date of termination of this transaction (whichever is earlier); 3. The
36Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Enterprise promises to change the ownership of the underlying
assets in a timely manner according to the agreement after the
relevant agreement of this transaction comes into effect and all the
responsibilities arising from disputes caused by the Enterprise in
the process of ownership change shall be borne by the Enterprise;
4. The ownership of the above-mentioned underlying assets to be
transferred by the Enterprise has none of unresolved or foreseeable
disputes such as litigation and arbitration and the responsibilities
arising from disputes such as litigation and arbitration shall be
borne by the Enterprise.Commitment made during asset restructuring: 1. The Enterprise
legally owns the corresponding shares of the target company and
its capital contribution to the target assets will be paid in full before
January 31 2023 and there will be no false capital contribution or
withdrawal of capital contribution and the Enterprise has complete
ownership of the target assets with no other circumstances that
may affect the legal existence of the target company; 2. The
Enterprise is the ultimate and true owner of the underlying assets
and the ownership of the underlying assets is clear with no dispute
and there are no circumstances of holding the underlying assets by
means of trust entrusting others or accepting others' entrustment;
Expla
Comm The underlying assets are not in custody with no pledge mortgage
nation
itment lien and other security rights or other third-party rights or other
on the
made Lishui terms or agreements restricting transfer signed and no dispute or Dece Sustai
Owner
upon Huahui potential dispute. The underlying assets have not been sealed up or mber ned Under
ship and Fulfill
the Xiamen frozen by administrative or judicial organs and there are no other 3020
of the effecti ment
assets Zhifeng restrictions or prohibitions on transfer. The Enterprise guarantees 22
Under ve
replac that the above-mentioned state will continue until the transfer of
lying
ement the underlying assets to the name of the listed company or until the
Assets
date of termination of this transaction (whichever is earlier); 3. The
Enterprise promises to change the ownership of the underlying
assets in a timely manner according to the agreement after the
relevant agreement of this transaction comes into effect and all the
responsibilities arising from disputes caused by the Enterprise in
the process of ownership change shall be borne by the Enterprise;
4. The ownership of the above-mentioned underlying assets to be
transferred by the Enterprise has none of unresolved or foreseeable
disputes such as litigation and arbitration and the responsibilities
arising from disputes such as litigation and arbitration shall be
borne by the Enterprise.State Commitment made during asset restructuring: 1. The relevant
ment information provided by the Company during this transaction is
and authentic accurate and complete and it is guaranteed that there are
Comm no false records misleading statements or major omissions and the
itment Company will bear individual and joint legal responsibilities for the
Comm on the authenticity accuracy and completeness of the information
itment Authe provided. If there are false records misleading statements or major
made nticity omissions in the information provided which cause losses to the Dece Sustai
Hengmei
upon listed company or investors the Enterprise will be liable for mber ned Under
Photoelect and Fulfill
the Accur compensation according to law; 2. The Company will submit 3020
ric effecti ment
assets acy relevant information documents and materials (including but not 22 ve
replac and limited to original written materials electronic materials duplicate
ement Compl materials and oral testimony) required for this transaction to the
etenes listed company and relevant intermediaries in a timely manner and
s of at the same time it promises that the information and documents of
the the paper and electronic materials provided are authentic complete
Infor accurate and reliable the relevant duplicate materials or
matio photocopies are consistent with the original all signatures and seals
37Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
n on the documents are authentic and valid and the photocopies are
Provid consistent with the original and the signatories of these documents
ed have legally authorized and effectively signed the documents and
that there are no false records misleading statements or major
omissions; 3. The Company guarantees that it has fulfilled its
statutory disclosure and reporting obligations on this transaction
and there are no contracts agreements arrangements or other
matters that should be disclosed but not disclosed. The Company is
aware of the possible legal consequences of the above
commitments and will bear corresponding legal responsibilities for
acts that violate the above commitments.Shenzhen Investment Holdings Co. Ltd. signed a “Letter ofCommitment and Statement on Horizontal Competition Avoidance”
when the company issued non-public stocks in 2009. Pursuant to
Comm the Letter of Commitment and Statement Shenzhen Investment
itment Holdings Co. Ltd. and its wholly owned subsidiary subsidiaries
s on under control or any other companies that have actual control of it
horizo shall not be involved in the business the same as or similar to thoseComm ntal Shenzhen Textile currently or will run in the future or anyitment Shenzhen compe businesses or activities that may constitute direct or indirect Sustais Investmen tition competition with Shenzhen Textile; if the operations of Shenzhen Octob ned Undermade t Holdings related Investment Holdings Co. Ltd. and its wholly owned subsidiaries er 9 and Fulfillupon Co. Ltd. transa subsidiaries under control or other companies that have actual 2009 effecti mentissuan ction control of it compete with Shenzhen Textile in the same industry or vece and contradict the interest of the issuer in the future Shenzhen
capital Investment Holdings Co. Ltd. shall urge such companies to sell the
occup equity assets or business to Shenzhen Textile or a third party; when
ation the horizontal competition may occur due to the business expansionconcurrently necessary for Shenzhen Investment Holdings Co.Ltd. and its wholly owned subsidiaries subsidiaries under control
or other companies that have actual control of it and Shenzhen
Textile Shenzhen Textile shall have priority.The commitments during the period non-public issuance in 2012:
1. Shenzhen Investment Holdings as the controlling shareholder of
Shenzhen Textile currently hasn't the production and business
activities of inter-industry competition with Shenzhen Textile or its
Comm share-holding subsidiary. 2. Shenzhen Investment Holdings and its
itment share-holding subsidiaries or other enterprises owned the actual
s on control rights can't be directly and indirectly on behalf of any
Comm horizo person company or unit to engage in the same or similar business
itment ntal in any districts in the future by the form of share-holding equity
s Shenzhen compe participation joint venture cooperation partnership contract
Sustai
made Investmen tition lease etc. and ensure not to use the controlling shareholder's status
July ned Under
upon t Holdings related to damage the legitimate rights and interests of Shenzhen Textile
14 and Fulfill
issuan Co. Ltd. transa and other shareholders or to gain the additional benefits. 3. If there
2012 effecti ment
ce ction will be the situation of inter-industry competition with Shenzhen
ve
and Textile for Shenzhen Investment Holdings and its share-holding
capital subsidiaries or other enterprises owned the actual control rights in
occup the future Shenzhen Investment Holdings will promote the related
ation enterprises to avoid the inter-industry competition through the
transfer of equity assets business and other ways. 4. Above
commitments will be continuously effective and irrevocable during
Shenzhen Investment Holdings as the controlling shareholder of
Shenzhen Textile or indirectly controlling Shenzhen Textile.Executed timely or not Yes
If the commitments failed to complete the execution when expired should specifically explain the
reasons of unfulfillment and the net stage of the working plan Not applicable
II. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
No such cases in the reporting period.
38Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
III. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the reporting period.IV. Engagement and disengagement of CPAs firm
Whether the semi-annual financial report has been audited
□ Yes √ No
The semi-annual financial report of the Company has not been audited
V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of
directors and supervisory board
□ Applicable √ Not applicable
VI. Notes for the related information of “non-standard audit reports” last year by board of directors
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.VIII. Litigations and arbitrations
Matters of Important Lawsuit
√ Applicable □Not applicable
Amount Whether ImplemenBasic involved to form Litigation( Litigation(arbitr tation ofsituation of (Ten estimatelitigation(arbit d arbitration
ation)trial litigation( Disclosure
thousand )progress results and arbitration date
Disclosure index
ration) yuan) liabilitie impact )judgments s
The plaintiff
Jinhang Fund The Court Jinhang Fund
v. SAPO has ruled withdrew the http://www.cninfo.com.cn
Not AprilPhotoelectric 0 No to lawsuit which （ Announcementapplicable 112023Dissolution withdraw did not affect No.:2023-19）
Dispute the case the Company's
operation.Jinhang Fund The Court The plaintiff
v. SAPO has ruled Jinhang Fund http://www.cninfo.com.cn
Not AprilPhotoelectric 0 No to withdrew the （ Announcementapplicable 112023Shareholders' withdraw lawsuit which No.:2023-19）
Right to the case did not affect
39Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Know Dispute the Company's
operation.Jinhang Fund
The court
v. SAPO The court
has ruled
Photoelectric dismissed all http://www.cninfo.com.cn
to dismiss Not JuneResolution 0 No claims of the （ Announcementall of the applicable 12023Validity plaintiff Jinhang No.:2023-28）
plaintiff's
Confirmation Fund.claims.Dispute
Other litigation matters
√ Applicable □Not applicable
Wheth Litigatio Implem
Basic Amount er to n(arbitra entation
situation of involved form(ten estima Litigation(arbitration)progress tion)trial
of Disclo
litigation(ar results litigatio sure Disclosure index
bitration) thousan ted and n(arbitra dated yuan) liabilit impact tion)judies gments
Shenzhen
Shenbao
The plaintiff sued the Company
Light
Shenzhen Yuanxingchang Industrial The trial
Textile
Co. Ltd and Su Xingbin has not
Industry and
demanding that the three defendants been
Trade Co.bear joint and several liability for complet
Ltd
the debts of 2567479.11 yuan of ed and
Manager v.Shenbao Company. The case was it yet
the Pending
256.75 No heard in the first instance on May has no Not applicable
Company trial
27 2022 and June 30 2022. The impact
Shenzhen
Companywon the case in the first- on the
Yuanxingch
instance and the plaintiff had filed Compan
ang Industry
an appeal and the case was opened y's
Co. Ltd Su
by the second-instance court in operatio
Xingbinin
February 2023 and it is still n
Liquidation
pending.Liability
Dispute
The applicant sued the Company
The
demanding that the Company pays
Shenzhen settleme
the overdue supervision fee
Luban nt fee
occupancy interest and late payment It has
Constructio was
fee of Guanhua Building totaling in been
n paid by
7961641.01 yuan. Presently the impleme
Supervision Guanhu
two parties have settled the nted in
Co.Ltd a
Company has completed the accorda
(applicant) Compan
796.16 No execution in accordance with the nce with Not applicable
and the y and
settlement agreement the applicant the
Company's had no
has submitted an application for settleme
construction impact
withdrawal to the Shenzhen nt
project on the
Arbitration Commission on June agreeme
supervision Compan
25 2023 and the arbitration nt.
contract y's
commission has made a decision to
dispute case operatio
withdraw the case on June 30
n
2023.
Guan The plaintiff requested that the The
The case
Chongheng Company be ordered to perform the plaintiff
has been
v. the 234.55 No decision of the eighth meeting of has Not applicable
withdra
Company's the board of directors of Guanhua withdra
wn
Right to Building in 2012 and pay the wn the
40Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Recourse upfront expenses of 1325100 yuan lawsuit
Dispute and interest losses of 1020369 and it
Case yuan in lieu of Guanhua Building in has no
the early stage. The case was heard impact
on April 18 2023 and the plaintiff on the
submitted an application for Compan
withdrawal to the court in court y's
and the court issued a ruling on the operatio
same day allowing the plaintiff to ns
withdraw the lawsuit.The plaintiff sued the Company and It has
the United Equity Exchange for the been
Shenzhen return of the 3.9-million-yuan impleme
Dingxiang deposit plus interest. The Company nted in
It has
Investment lost the case in the first-instance accorda
been
Co. Ltd and and the court ruled that the nce with
impleme
Shenzhen Company needed to return the the
nted in
United deposit and interest of 3.9 million original
accorda
Equity yuan; The Company won the second-
nce with
Exchange 390 No lawsuit in the second-instance and instance Not applicable
the
Co. Ltd and upon the second-instance the court judgmen
original
the ruled to revoke the first-instance t and it
judgmen
Company judgment and dismiss the plaintiff's has no
t of the
concluded a claim. The plaintiff filed a retrial impact
second
dispute over with the Guangdong Provincial on the
instance.liability for High Court which ruled on June Compan
negligence 13 2023 with rejection to y's
Dingxiang Investment's application operatio
for retrial. n.The plaintiff requested the It has no
Liu Guowei
Company to pay the pension impact
v. the
insurance for the period of 1989- on the Yet not
Company
10 No 1999 and to compensate 100000 Compan in Not applicable
Labor
yuan. The case will be heard in y's session
Dispute
Futian District Court on October operatio
Case
19 2023. ns
Shenzhen
Chiming
Electronics The plaintiff sued Zhang Ziping and
It has no
Co. Ltd v. the Company for rent reduction of
impact
Zhang 73710 yuan and demanded that
on the Yet not
Ziping and Zhang Ziping returns the deposit of
7.37 No Compan in Not applicable
the 31200 yuan and pays liquidated
y's session
Company damages of 30000 yuan. The case
operatio
housing will be heard in Futian District
ns
lease Court on August 23 2023.contract
dispute case
IX. Punishments and rectifications
□ Applicable √ Not applicable
41Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
X. Credit conditions of the Company as well as its controlling shareholder and actual controller
□ Applicable √ Not applicable
XI.Material related transactions
1. Related transactions in connection with daily operation
□Applicable □Not applicable
Wheth
Su
bj Tradin er
ec
ts g limit over D
Re of Princi Amou appro the Market at
Relate lat Ty th ple of Pric nt of Way price of e
d io pe e pricin e of trade( Ratio in ved appro of similar of Index of
partie ns of rel g the trad Ten similar payme trade di information
s hi tra at related trades (Ten ved scl disclosure
p de ed transa
e thousa nt availabl os
tra ctions nd) thousa limite e ur
ns e
ac nd d or
tio
ns yuan) not
(Y/N)
Se
ll
pr
od
uc Sa
ts les
an of
d co A
co ntr ug
Heng www.cninfo.co
m ac Based Mar us
mei Ot m.cn.Announce
m t on ket 474.4 100.00 t
Photo he 1100 No T/T 474.46 ment No.:2023-
od co marke Pric 6 % 24
electri r 024 August 24
iti ati t price e 2
c 2023.es ng 02
to pr 3
rel od
ate uc
d ts
pe
rs
on
s
Pu Pr A
rc oc ug
Heng www.cninfo.co
ha ur Based Mar us
mei Ot m.cn.Announce
se e on ket 100.00 t
Photo he 83.43 1400 No T/T 83.43 ment No.:2023-
of m marke Pric % 24
electri r 024 August 24
ser en t price e 2
c 2023.vi t 02
ce of 3
42Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
fro R
m TP
th O
e E
Re M
lat se
ed rvi
pe ce
rs s
on
Pu
rc
ha
se
of
ra
w
A
m B
ug
Heng ate uy www.cninfo.co
Based Mar us
mei Ot ria op m.cn.Announce
on ket 368.0 100.00 t
Photo he ls tic 1500 No T/T 368.07 ment No.:2023-
marke Pric 7 % 24
electri r fro al 024 August 24
t price e 2
c m fil 2023.
02
th m
3
e
Re
lat
ed
pe
rs
on
925.9
Total -- -- -- 4000 -- -- -- -- --
6
Details of any sales return of a large amount Not applicable
Give the actual situation in the report period where a forecast had been made for the total amounts of
routine related-party transactions by type to occur in the current period(if any) Not applicable
Reason for any significant difference between the transaction price and the market reference price (if
applicable) Not applicable
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No such cases in the reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
√ Applicable □ Not applicable
Does there exist non-operating current associated rights of credit and liabilities
43Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
□ Yes √No
No such cases in the reporting period.
5. Transactions with related finance company especially one that is controlled by the Company
□Applicable √ Not applicable
No such cases in the reporting period.
6. Transactions with related finance company controlled by the Company
□ Applicable √ Not applicable
No such cases in the reporting period.
7. Other significant related-party transactions
□Applicable □Not applicable
The Company intends to purchase 100% of the equity of Hengmei Photoelectric by issuing shares and
paying cash and intends to raise matching funds from no more than 35 eligible specific objects by non-public
offering of shares (hereinafter referred to as the "Transaction"). This transaction constitutes a related party
transaction which is expected to constitute a major asset restructuring but does not constitute a restructuring
listing and this transaction will not lead to a change in the actual controller of the Company.The website to disclose the interim announcements on significant related-party transactions
Date of disclosing
Description of provisional announcement provisional Description of the website for disclosing
announcement provisional announcements
Progress announcement the Proposal on "Plan
for Shenzhen Textile (Holdings) Co. Ltd. to Issue
Shares Pay Cash to Purchase Assets and Raise
January 302023 http://www.cninfo.com.cn
Matching Funds and Related Party Transactions"
and Its Summary and other proposals related to
this transaction
Progress announcement the Proposal on "Plan
for Shenzhen Textile (Holdings) Co. Ltd. to Issue
Shares Pay Cash to Purchase Assets and Raise
February 282023 http://www.cninfo.com.cn
Matching Funds and Related Party Transactions"
and Its Summary and other proposals related to
this transaction
Progress announcement the Proposal on "Plan
for Shenzhen Textile (Holdings) Co. Ltd. to Issue
Shares Pay Cash to Purchase Assets and Raise
March 312023 http://www.cninfo.com.cn
Matching Funds and Related Party Transactions"
and Its Summary and other proposals related to
this transaction
Progress announcement the Proposal on "Plan
for Shenzhen Textile (Holdings) Co. Ltd. to Issue
Shares Pay Cash to Purchase Assets and Raise
April 292023 http://www.cninfo.com.cn
Matching Funds and Related Party Transactions"
and Its Summary and other proposals related to
this transaction
Progress announcement the Proposal on "Plan
for Shenzhen Textile (Holdings) Co. Ltd. to Issue May 312023 http://www.cninfo.com.cn
Shares Pay Cash to Purchase Assets and Raise
44Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Matching Funds and Related Party Transactions"
and Its Summary and other proposals related to
this transaction
Special explanation on being unable to issue
notice of convening a shareholders' meeting
within the specified period on the progress of
June 282023 http://www.cninfo.com.cn
issuing shares and paying cash to purchase assets
and raise matching funds namely the related party
transaction
Progress announcement the Proposal on "Plan
for Shenzhen Textile (Holdings) Co. Ltd. to Issue
Shares Pay Cash to Purchase Assets and Raise
July 282023 http://www.cninfo.com.cn
Matching Funds and Related Party Transactions"
and Its Summary and other proposals related to
this transaction
XII. Significant contracts and execution
1.Entrustments contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporting period.
2.Significant Guarantees
√ Applicable □ Not applicable
In RMB10000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant
disclosur Date of Guarante
e happeni Counter Comp eName of
the date/No.Amoun Guarant - lete for
of t of
ng Actual Guara
Compan Guarant (Date of mount of ntee
y（If guarante Guarantee imple associatethe signing guarantee type any） e（If term menta dy guarante ee agreeme any） tion parties
ed nt) or not (Yes or
amount no)
Guarantee of the company for its subsidiaries
Name of Relevant Date of
Counter
disclosur Amoun
Comp Guarante
the t of happeni Actual Guara
Guarant - lete ee ng mount of ntee y（If guarante GuaranteeCompan imple fory date/No.Guarantee (Date of guarantee type any）
e（If term menta associateof signing any） tion d
45Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
the agreeme or not parties
guarante nt) (Yes or
ed no)
amount
Guara Two years
SAPO nteein from theSeptemb
Photoele March g of date of
ctric 182020 48000 er 39391.47 expiration No Nojoint
82020 of the
liabilit principal
ies debt
Total of guarantee Total of actual
for subsidiaries guarantee for
approved in the 0 subsidiaries in the 0
period(B1) period (B2)
Total of guarantee Total of actual
for subsidiaries guarantee for
approved at period- 48000 subsidiaries at period- 39391.47
end(B3) end(B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Relevant
disclosur Date of Guarante
e happeni Counter Comp eName of date/No. Amounthe t of ng Actual Guara
Guarant - lete forof (Date of mount of ntee y（If guarante Guarantee imple associateCompany the
Guarant signing guarantee type any e（If term menta d）guarante ee agreeme any tion parties）
ed nt) or not (Yes or
amount no)
The Company’s total guarantee(i.e. total of the first three main items)
Total guarantee Total amount of
quota approved in guarantee actually
the reporting period 0 incurred in the 0
（A1+B1+C1） reporting period（A2+B2+C2）Total guarantee
quota already Total balance of the
approved at the actual guarantee at the
end of the 48000 end of the reporting 39391.47
reporting period period
（A3+B3+C3） （A4+B4+C4）The proportion of the total amount of
actually guarantee in the net assets of the 13.80%Company (that is A4+B4+C4）%
Including：
Amount of guarantee for shareholders
actual controller and its associated parties 0
（D）
The debts guarantee amount provided for
the
Guaranteed parties whose assets-liability 0
ratio exceed
70% directly or indirectly（E）
Proportion of total amount of guarantee in
net assets of the company exceed 50% 0
（F）
Total guarantee Amount of the
0
abovementioned guarantees（D+E+F）
Description of the guarantee with complex method: None
46Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
3. Situation of Entrusted Finance
√ Applicable □Not applicable
In RMB10，000
Source of funds The Occurred
Specific type for entrusted Amount offinancial Entrusted Wealth- Undue balance Amount overdue
Un-recovered of
overdue amount
management management
Bank financial
products Self fund 40000.00 45000.00 0 0
Other Self fund 8180.77 15641.32 0 0
Total 48180.77 60641.32 0 0
The detailed information of entrusted wealth-management with significant amount or low safety poor liquidity
or high risk with no promise of principal
√ Applicable □Not applicable
In RMB10000
Name Typ Pr Amou Ca Start Expi Fun Met Refe Exp Actu The Am Whe Whe Sum
of e of od nt pit Date ry ds hod renc ecte al actu ount ther ther mar
Truste Trus uc al Date Allo of e d profi al of pass ther y of
e tee t So catio Rew Ann Inco t reco prov ed e is even
Organ Org Ty ur n ard ualiz me and very ision the any ts
ization aniz pe ce Dete ed (if loss of for statu entr and
(or atio rmin Rate any) duri profi imp tory uste relat
Truste n(or atio of ng t airm proc d ed
e Trus n Retu the and ent edur fina sear
Name) tee) rn repo loss (if e ncial ch
rting duri any) plan inde
peri ng in x (if
od the the any)
repo futur
rting e
peri
od
St A
ru mon lum
ct Se ey p-
Janu Not
Bank ur lf July mar sum Not
Ban 2500 ary 3.40 416. appl
of al fu 720 ket pay 0.00 expi Yes
k 0 920 % 85 icabl
China de nd 23 instr men r ed
23 e
po s ume twhe
sit nt n
s due
St A
ru mon lum
Bank ct Se ey p-
Janu Not
of ur lf July mar sum Not
Ban 1500 ary 3.36 254. appl
Comm al fu 122 ket pay 0.00 expi Yes
k 0 920 % 07 icabl
unicati de nd 023 instr men r ed
23 e
on po s ume twhe
sit nt n
s due
South M Se Dec Red
Not
ern on lf emb Lon emp Not
Fun 1564 Othe 2.19 appl
Fund et fu er g- tion 0.00 0.00 expi Yes
ds 1.32 r % icabl
Mana ar nd 162 term on T r ed
e
gemen y s 022 day
47Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
t Co. Fu arriv
Ltd nd al
on
T+1
day
55641.670.9
Total -- -- -- -- -- -- 0.00 -- -- -- --
322
Entrusted financing appears to be unable to recover the principal or there may be other circumstances that
may result in impairment
□ Applicable √ Not applicable
4. Other significant contract
□ Applicable √ Not applicable
XIII. Explanation on other significant events
√ Applicable □Not applicable
(I) Issue shares to purchase assets and raise supporting funds
According to the relevant regulations of Shenzhen Stock Exchange upon the application of the company
the shares of the company were suspended from trading on the morning of December 19 2022. On December
30 2022 the company held the nineteenth meeting of the Eighth Board of Directors and the thirteenth meeting
of the Eighth Board of Supervisors and deliberated and passed the Proposal on the "Plan for Shenzhen Textile
(Group) Co. Ltd. to Issue Shares Pay Cash to Purchase Assets and Raise Matching Funds and Related Party
Transactions" and Its Summary and other proposals related to this transaction. The company's shares resumed
trading on the morning of January 3 2023. The Company intends to purchase 100% equity of Hengmei
Photoelectric Co. Ltd. by issuing shares and paying cash and at the same time it plans to raise matching funds
from non-public offering of shares to no more than 35 qualified specific targets (hereinafter referred to as "this
transaction"). This transaction constitutes a related party transaction and is expected to constitute a major asset
restructuring but it does not constitute a restructuring and listing nor will it lead to the change of the actual
controller of the company. This transaction is conducive to the company's strong alliance in the polarizer
industry rapidly increasing the production scale of polarizers optimizing the layout of industrial chain and
deepening the depth of technical reserves making the company move towards a new level of high-quality
development. Meanwhile this major asset restructuring is in line with the relevant development strategies of the
country and Shenzhen and has positive significance for ensuring the security of the national new display supply
Since the disclosure of the transaction plan the Company and the relevant parties have actively promoted
the audit evaluation due diligence and other work involved in this transaction. According to the requirements
of relevant laws and regulations the Company shall convene the meeting of the board of directors before June
30 2023 to consider the draft restructuring report and issue a notice of convening a general meeting of
shareholders. Since the validity period of the financial data of the target company of this transaction is about to
expire the intermediary intends to conduct additional audits and supplementary due diligence and the
Company still needs to communicate and negotiate the details of the transaction with the counterparty there is
uncertainty as to whether to adjust the restructuring plan therefore the Company can not disclose the draft
restructuring report plan and issue a notice of convening a general meeting of shareholders before June 30
48Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
2023.After mutual consensus among all parties involved in the transaction the Company will continue to
advancethis transaction.For details please refer to the Company's Announcement No. 2023-29 on CNINF
(http://www.cninfo.com.cn).Presently the Company is further communicating and negotiating the details of the transaction with the
counterparty and coordinating with various intermediaries to carry out additional audit assessment and
supplementary due diligence of the target company as well as negotiating with the counterparty to determine
the transaction plan and perform the state-owned assets approval procedures. Upon completion of the relevant
work the Company will reconvene the meeting of the Board of Directors to consider matters related to the
transaction and the date of the announcement of the resolution of the Board of Directors will be used as the
pricing reference date for the shares to be issued for the transaction.
（2） Disposal of assets of the joint venture company Shenzhen Xieli
Shenzhen Xieli Automobile Enterprise Co. Ltd. (hereinafter referred to as "Shenzhen Xieli") is a Sino
foreign joint venture established by the company and Hong Kong Xieli Maintenance Company in 1981 with a
registered capital of 3.12 million yuan. The company holds 50% of the equity. The company's operating period
ended in 2008 and its business license was revoked in 2014. The company's main assets are real estate. In
March 2020 Shenzhen Xieli Industrial and Commercial Co. Ltd. has been cancelled but there are still three
properties under its name that need to be resolved through further negotiation between the shareholders of both
parties.On July 26 2021 the Company filed a complaint with the People's Court of Yantian District Shenzhen
City Guangdong Province to revoke the approval of cancelation of Shenzhen Xieli Automobile Enterprise Co.Ltd by the Shenzhen Market Supervision and Administration Bureau. In November 2021 the court ruled to
revoke the aforementioned approval of cancellation. Hong Kong Xieli Maintenance Company and Shenzhen
Market Supervision and Administration Bureau were not satisfied and submitted appeal petitions to the
Shenzhen Intermediate People's Court respectively. On June 28 2022 the Shenzhen Intermediate People's
Court ruled in the second instance: revoked the administrative judgment-No. 1883(2021) Yue 0308 Xingchuof
the Yantian District People's Court of Shenzhen City Guangdong Province and remanded it to the Yantian
District People's Court of Shenzhen City Guangdong Province for a new trial.After a new trial the Yantian District People's Court ruled in favor of the Company on December 30 2022
and revoked the administrative act of Shenzhen Xieli to cancel its registration. The third party in the original
trial Hong Kong Xieli Maintenance Company was not satisfied and appealed to the Shenzhen Intermediate
People's Court on January 10 2023. Later as Hong Kong Xieli Maintenance Company failed to pay the case
acceptance fee in advance the Shenzhen Intermediate People's Court issued the No. 387(2023) Yue 03 Xing
Final Administrative Ruling ruling that the appellant Hong Kong Xieli Maintenance Company in the case
withdraws its appeal.
（3）Matters on waiving the preemptive right and equity transfer of controlling subsidiaries
The shareholders' meeting of SAPO Photoelectric the company's holding subsidiary agreed that Hangzhou
Jinhang Equity Investment Fund Partnership (limited partnership) would transfer 40% of its shareholding in
SAPO Photoelectric to Hengmei Photoelectric Co. Ltd. For details see http//www.cninfo.com.cn（ http://www.cninfo.com.cn ） Company Announcement No. 2023-01. On January 19 2023 SAPO
Photoelectric obtained the "Registration Notice" issued by the Shenzhen Municipal Market Supervision and
Administration Bureau and the industrial and commercial change registration procedures for this equity transfer
49Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
have been completed. After this change the company still holds 60% equity of SAPO Photoelectric while
Hengmei Photoelectric holds 40% equity of SAPO Photoelectric. This equity transfer is conducive to
synergizing the advantages of both parties in the polarizer industry integrating high- quality resources of both
parties further optimizing and strengthening the main polarizer industry and better enhancing the core
competitiveness of listed companies.XIV. Significant event of subsidiary of the Company
√ Applicable □ Not applicable
About the progress of the Company and its holding subsidiaries involved in litigation
In the above-mentioned lawsuits concerning the dissolution dispute of SAPO Photoelectric and the dispute over
shareholders' right to know the People's Court of Pingshan District of Shenzhen City Guangdong Province
received the plaintiff's application for withdrawal on March 30 2023 and made a ruling on April 6 2023. The
Company and SAPO Photoelectric have received the Civil Rulings of the above two cases with the rulings as
follows: The plaintiff's withdrawal of the lawsuit is a self-disposition of its right of action which does not
violate the law does not harm the interests of the state the collective and others and it is allowed according to
law.For details please refer to the Company's Announcement No. 2023-19 on CNINF
(http://www.cninfo.com.cn).In addition on May 25 2023 the People's Court of Pingshan District of Shenzhen City Guangdong Province
rendered a first-instance judgment in the above-mentioned dispute case over the confirmation of the validity of
the resolution of SAPO Photoelectric and the Company and SAPO Photoelectric have received the Civil
Judgment of the above-mentioned case with the judgment is as follows: all claims of the plaintiff Jinhang Fund
are dismissed.For details please refer to the Company's Announcement No. 2023-28 on CNINF
(http://www.cninfo.com.cn).
50Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
VI. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the ChangeAmount Proporti B
on on CapitaliShare zation of Ot Su
allotm us common he bt Quantity Proporti
ent shar reserve r
ot on
fund ales
1.Shares with conditional
subscription 72000 0.01% 0 0 0 0 0 72000 0.01%
1.State -owned shares 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned legal person
shares 0 0.00% 0 0 0 0 0 0 0.00%
3.Other domestic shares 72000 0.01% 0 0 0 0 0 72000 0.00%
Incl：Domestic legal person
shares 0 0.00% 0 0 0 0 0 0 0.00%
Domestic Natural Person
shares 72000 0.01% 0 0 0 0 0 72000 0.01%
4.Foreign share 0 0.00% 0 0 0 0 0 0 0.00%
Incl：Foreign legal person
share 0 0.00% 0 0 0 0 0 0 0.00%
Foreign Natural Person
shares 0 0.00% 0 0 0 0 0 0 0.00%
II.Shares with unconditional
subscription 506449849 99.99% 0 0 0 0 0 506449849 99.99%
1.Common shares in RMB 457021849 90.23% 0 0 0 0 0 457021849 90.23%
2.Foreign shares in domestic
market 49428000 9.76% 0 0 0 0 0 49428000 9.76%
3. Foreign shares in foreign
market 0 0.00% 0 0 0 0 0 0 0.00%
4.Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total of capital shares 100.00 100.00506521849 0 0 0 0 0 506521849
%%
Reasons for share changed
□ Applicable √ Not applicable
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable
to common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √Not applicable
51Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
2. Change of shares with limited sales condition
□ Applicable √Not applicable
II. Securities issue and listing
□ Applicable √Not applicable
III. Number of shareholders and shareholding
Total number of common Total number of preferred
shareholders at the end of the 27717 shareholders that had restored the voting right at the end of the 0
reporting period reporting period (if any) (note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Proporti Amount Number of share
on of
Shareholders Nature of Number of Changes in of Amount of
pledged/frozen
shares
shareholder shares held at reporting restricted un-restricted Stateheld period -end period shares shares held of Amount
（%） held share
Shenzhen
Investment State-owned
Holdings Co. legal person 46.21% 234069436 0 0 234069436
Ltd.Shenzhen
Shenchao State-owned
Technology Legal 3.18% 16129032 0 0 16129032
Investment person
Co. Ltd.Domestic
Sun Huiming Nature 1.26% 6399653 190800 0 6399653
person
Zhangzhou Domestic
Xiaotian Non-State-
Venture owned 0.83% 4188800 1264300 0 4188800
Investment Legal
Co. Ltd. person
Domestic
Su Weipeng Nature Pledg0.71% 3580000 0 0 3580000 2800000
person e
Domestic
Chen Xiaobao Nature 0.60% 3056484 27000 0 3056484
person
Domestic
Chen Zhaoyao Nature 0.59% 2990300 2990300 0 2990300
person
China
Construction
Bank Co. Ltd Domestic
－Xinao new Non-
energy State-
owned 0.50% 2513684 2314900 0 2513684industry
equity Legal
securities person
investment
fund
Domestic
Li Zengmao Nature 0.48% 2428297 203900 0 2428297
person
52Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Domestic
Peng Xun Nature 0.33% 1652800 293100 0 1652800
person
Strategy investors or general legal person
becomes top 10 shareholders due to rights None
issued (if applicable)（See Notes 3）
Among the top 10 common shareholders Shenzhen Investment Holdings Co. Ltd.and Shenzhen Shenchao Technology Investment Co. Ltd. do not constitute a
Explanation on shareholders participating concerted party relationship. In addition the company does not know whether there
in the margin trading business is an associated relationship among the top 10 ordinary shareholders and betweenthe top 10 ordinary shareholders and the top 10 shareholders or whether they are
persons taking concerted action defined in Regulations on Disclosure of Information
about Shareholding of Shareholders of Listed Company.Above shareholders entrusting or
entrusted with voting rights or waiving None
voting rights
Top 10 shareholders including the special
account for repurchase (if any) (see note None
10)
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares Share type
Name of the shareholder held at the end of the reporting
period Share type Quantity
Shenzhen Investment Holdings Co. Common shares in
Ltd. 234069436 234069436RMB
Shenzhen Shenchao Technology Common shares in
Investment Co. Ltd. 16129032 16129032RMB
Sun Huiming Foreign shares in6399653 6399653
domestic market
Zhangzhou Xiaotian Venture Common shares in
41888004188800
Investment Co. Ltd. RMB
Su Weipeng Common shares in3580000 3580000
RMB
Common shares in
Chen Xiaobao 3056484 3056484
RMB
Common shares in
Chen Zhaoyao 2990300 2990300
RMB
China Construction Bank Co. Ltd－
Common shares in
Xinao new energy industry equity 2513684 2513684
RMB
securities investment fund
Common shares in
Li Zengmao 2428297 2428297
RMB
Common shares in
Peng Xun 1652800 1652800
RMB
Among the top 10 common shareholders Shenzhen Investment Holdings Co.Explanation on associated relationship or Ltd. and Shenzhen Shenchao Technology Investment Co. Ltd. do not
consistent action among the top 10 shareholders constitute a concerted party relationship. In addition the company does not
of non-restricted negotiable shares and that know whether there is an associated relationship among the top 10 ordinary
between the top 10 shareholders of non- shareholders and between the top 10 ordinary shareholders and the top 10
restricted negotiable shares and top 10 shareholders or whether they are persons taking concerted action defined in
shareholders Regulations on Disclosure of Information about Shareholding of Shareholders
of Listed Company.Explanation on shareholders participating in the
margin trading business(if any )(See Notes 4) None
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-
back agreement dealing in reporting period.□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
53Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
IV. Changes in shareholdings of directors supervisors and executive officers
□ Applicable √Not applicable
There was no change in shareholding of directors supervisors and senior management staffs for the specific
information please refer to the 2022 Annual Report
V. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
54Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
VIII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
55Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
IX. Corporate Bond
□Applicable √Not applicable
56Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
X. Financial Report
I. Audit report
Has this semi-annual report been audited
□ Yes √ No
The semi-annual financial report has not been audited.II. Financial Statements
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co. Ltd.June 302023
In RMB
Items June 302023 January 12023
Current asset：
Monetary fund 616242142.99 991789968.19
Settlement provision
Outgoing call loan
Transactional financial assets 613554063.16 319605448.44
Derivative financial assets
Note receivable 56718590.38 74619100.26
Account receivable 854907728.96 636583469.93
Financing of receivables 22863088.36 54413796.91
Prepayments 29658881.12 18391444.67
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 3393141.86 10585975.38
Including：Interest receivable
Dividend receivable
Repurchasing of financial assets
Inventories 663102543.53 558447648.77
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 49663425.99 69535531.24
Total of current assets 2910103606.35 2733972383.79
Non-current assets：
Loans and payment on other’s behalf
disbursed
Creditor's right investment
Other creditor's right investment
Long-term receivable
57Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Long term share equity investment 132425526.41 134481835.74
Other equity instruments investment 167678283.27 167678283.27
Other non-current financial assets
Real estate investment 121971877.49 126315834.76
Fixed assets 2133290574.66 2240221656.36
Construction in progress 36543522.56 38061619.60
Production physical assets
Oil & gas assets
Use right assets 16680916.70 15365393.88
Intangible assets 41720496.23 44192571.95
Development expenses
Goodwill
Long-germ expenses to be amortized 3459965.93 4470957.79
Deferred income tax asset 68718492.58 69823814.29
Other non-current asset 40252375.73 42553016.47
Total of non-current assets 2762742031.56 2883164984.11
Total of assets 5672845637.91 5617137367.90
Current liabilities
Short-term loans 8000000.00 7000000.00
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable 15284993.54
Account payable 437489166.07 327049873.70
Advance receipts 1164665.15 1393344.99
Contract liabilities 4975276.30 4274109.40
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 57267795.28 61166444.90
Tax payable 6033241.05 8897312.51
Other account payable 187021282.45 197345455.37
Including：Interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 107490031.64 104183438.22
Other current liability 74149887.64 92945741.78
Total of current liability 898876339.12 804255720.87
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 557148599.34 607421585.00
Bond payable
Including：preferred stock
Sustainable debt
Lease liability 10357763.45 8628672.71
Long-term payable
Long-term remuneration payable to staff
Expected liabilities
Deferred income 104754078.27 117814796.10
Deferred income tax liability 48518353.82 47974267.80
Other non-current liabilities
Total non-current liabilities 720778794.88 781839321.61
58Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Total of liability 1619655134.00 1586095042.48
Owners’ equity
Share capital 506521849.00 506521849.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1961599824.63 1961599824.63
Less：Shares in stock
Other comprehensive income 109830200.11 109596609.31
Special reserve
Surplus reserves 100909661.32 100909661.32
Common risk provision
Retained profit 176552462.98 170636610.95
Total of owner’s equity belong to the
parent company 2855413998.04 2849264555.21
Minority shareholders’ equity 1197776505.87 1181777770.21
Total of owners’ equity 4053190503.91 4031042325.42
Total of liabilities and owners’ equity 5672845637.91 5617137367.90
Legal Representative: Yin Kefei
Person-in-charge of the accounting work：He Fei
Person-in -charge of the accounting organ：Huang Min
2.Parent Company Balance Sheet
In RMB
Items June 302023 January 12023
Current asset：
Monetary fund 128173826.37 426042455.28
Transactional financial assets 593512060.11 319605448.44
Derivative financial assets
Note receivable
Account receivable 18004264.58 15643024.11
Financing of receivables
Prepayments 1406419.78 0.00
Other account receivable 14116168.90 14132756.62
Including：Interest receivable
Dividend receivable
Inventories 18993.95 26237.85
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset
Total of current assets 755231733.69 775449922.30
Non-current assets：
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 2090375024.50 2092431333.83
Other equity instruments investment 151618842.39 151618842.39
Other non-current financial assets
Real estate investment 97823054.11 101190712.85
Fixed assets 10806016.97 11346585.35
Construction in progress
59Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 249098.82 308243.90
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset
Other non-current asset 25760086.27 25997082.15
Total of non-current assets 2376632123.06 2382892800.47
Total of assets 3131863856.75 3158342722.77
Current liabilities
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 411743.57 411743.57
Advance receipts 540673.07 691160.58
Contract liabilities
Employees’ wage payable 13987952.68 18510589.33
Tax payable 3684645.18 7121466.14
Other account payable 111540100.53 113736371.24
Including：Interest payable
Dividend payable
Liabilities held for sales
Non-current liability due within 1 year
Other current liability
Total of current liability 130165115.03 140471330.86
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable
Long-term remuneration payable to staff
Expected liabilities
Deferred income 250000.00 300000.00
Deferred income tax liability 44905468.47 44363868.30
Other non-current liabilities
Total non-current liabilities 45155468.47 44663868.30
Total of liability 175320583.50 185135199.16
Owners’ equity
Share capital 506521849.00 506521849.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1577392975.96 1577392975.96
Less：Shares in stock
Other comprehensive income 98910619.45 98855668.75
Special reserve
Surplus reserves 100909661.32 100909661.32
Retained profit 672808167.52 689527368.58
Total of owners’ equity 2956543273.25 2973207523.61
Total of liabilities and owners’ equity 3131863856.75 3158342722.77
60Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
3.Consolidated Income statement
In RMB
Items The first half year of 2023 The first half year of 2022
I. Income from the key business 1490095669.55 1445137309.09
Incl：Business income 1490095669.55 1445137309.09
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1412490369.86 1353000511.71
Incl：Business cost 1286170472.71 1242988094.06
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 4397329.78 4171362.18
Sales expense 16439473.30 18355747.39
Administrative expense 65299409.82 61448188.86
R & D costs 36004188.62 34870992.66
Financial expenses 4179495.63 -8833873.44
Including：Interest expense 13965081.41 15882534.27
Interest income 5318571.16 773863.34
Add: Other income 19369307.55 10780654.48
Investment gain（“-”for loss） 7743354.69 11043172.52
Incl: investment gains from affiliates -2111260.03 1658532.04
Financial assets measured at amortized cost cease to be recognized
as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value
Credit impairment loss -8669369.85 -2985253.53
Impairment loss of assets -35512897.29 -42073672.20
Assets disposal income 321.08 -11114.72
III. Operational profit（“-”for loss） 60536015.87 68890583.93
Add：Non-operational income 401387.79 1768115.05
Less: Non-operating expense 3037581.05 213090.29
IV. Total profit(“-”for loss) 57899822.61 70445608.69
Less：Income tax expenses 5713017.38 340897.81
V. Net profit 52186805.23 70104710.88
(I) Classification by business continuity
1.Net continuing operating profit 52186805.23 70104710.88
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 36307162.97 42433525.10
2.Minority shareholders’ equity 15879642.26 27671185.78
VI. Net after-tax of other comprehensive income 352684.20 75756.02
Net of profit of other comprehensive income attributable to owners 233590.80 75756.02
of the parent company.（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or net
61Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
assets
2.Other comprehensive income under the equity method investee c
an not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
instruments
4. Changes in the fair value of the company’s credit risks
5.Other（II）
Other comprehensive income that will be reclassified into profit or 233590.80 75756.02
loss.
1.Other comprehensive income under the equity method investee c
an be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt obligations 178640.10
3. Other comprehensive income arising from the reclassification of
financial assets
4.Allowance for credit impairments in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements 54950.70 75756.02
7.Other
Net of profit of other comprehensive income attributable to Minorit
y shareholders’ equity 119093.40
VII. Total comprehensive income 52539489.43 70180466.90
Total comprehensive income attributable to the owner of the parent
company 36540753.77 42509281.12
Total comprehensive income attributable minority shareholders 15998735.66 27671185.78
VIII. Earnings per share
（I）Basic earnings per share 0.0717 0.0838
(II)Diluted earnings per share 0.0717 0.0838
The current business combination under common control the net profits of the combined party before achieved
net profit of RMB 0.00 last period the combined party realized RMB0.00.Legal Representative: Yin Kefei
Person-in-charge of the accounting work：He Fei
Person-in -charge of the accounting organ：Huang Min
4. Income statement of the Parent Company
In RMB
Items The first half The first halfyear of 2023 year of 2022
I. Income from the key business 39239619.43 21156669.75
Incl：Business cost 4156707.01 5203409.57
Business tax and surcharge 1518980.53 1379026.92
Sales expense 103182.40 61120.10
Administrative expense 24244619.96 20247344.52
R & D expense
Financial expenses -1137285.05 -246370.02
Including：Interest expenses
Interest income 1206551.01 227023.28
Add：Other income 103012.52 181448.97
Investment gain（“-”for loss） 7701351.64 11334212.84
Including: investment gains from affiliates -2111260.03 1658532.04
Financial assets measured at amortized cost cease to be recognized as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss -38616.99 -106152.94
Impairment loss of assets
62Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Assets disposal income
II. Operational profit（“-”for loss） 18119161.75 5921647.53
Add：Non-operational income
Less：Non -operational expenses 263.13 100000.00
III. Total profit(“-”for loss) 18118898.62 5821647.53
Less：Income tax expenses 4446788.74 262406.66
IV. Net profit 13672109.88 5559240.87
1.Net continuing operating profit 13672109.88 5559240.87
2.Termination of operating net profit
V. Net after-tax of other comprehensive income 54950.70 75756.02
（I）Other comprehensive income items that will not be reclassified into gains/losses in
the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or net assets
2.Other comprehensive income under the equity method investee can not be reclassified i
nto profit or loss.
3. Changes in the fair value of investments in other equity instruments
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified into profit or loss 54950.70 75756.02
1.Other comprehensive income under the equity method investee can be reclassified into
profit or loss.
2. Changes in the fair value of investments in other debt obligations
3. Other comprehensive income arising from the reclassification of financial assets
4.Allowance for credit impairments in investments in other debt obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements 54950.70 75756.02
7.Other
VI. Total comprehensive income 13727060.58 5634996.89
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2023 The first half year of 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 1289316287.70 1337065239.48
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received from interest commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned 2508619.13 2595000.19
Other cash received from business operation 77994829.70 287019693.63
Sub-total of cash inflow 1369819736.53 1626679933.30
Cash paid for purchasing of merchandise and services 1119566064.13 1225526384.08
Net increase of client trade and advance 0.00 0.00
Net increase of savings in central bank and brother company 0.00 0.00
63Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Cash paid for original contract claim 0.00 0.00
Net increase in financial assets held for trading purposes 0.00 0.00
Net increase for Outgoing call loan 0.00 0.00
Cash paid for interest processing fee and commission 0.00 0.00
Cash paid to staffs or paid for staffs 132029182.07 132733244.30
Taxes paid 25728838.24 139777733.09
Other cash paid for business activities 78092678.49 49204337.24
Sub-total of cash outflow from business activities 1355416762.93 1547241698.71
Net cash generated from /used in operating activities 14402973.60 79438234.59
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 1456000.00 2636054.80
Net cash retrieved from disposal of fixed assets intangible assets
and other long-term assets 7050.00 2776.70
Net cash received from disposal of subsidiaries or other operational
units 0.00 0.00
Other investment-related cash received 195000000.00 635000000.00
Sub-total of cash inflow due to investment activities 196463050.00 637638831.50
Cash paid for construction of fixed assets intangible assets and
other long-term assets 13286475.07 31252419.31
Cash paid as investment 0.00 0.00
Net increase of loan against pledge 0.00 0.00
Net cash received from subsidiaries and other operational units 0.00 0.00
Other cash paid for investment activities 631537000.00 650000001.00
Sub-total of cash outflow due to investment activities 644823475.07 681252420.31
Net cash flow generated by investment -448360425.07 -43613588.81
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment from minor shareholders
Cash received as loans 3000000.00 50572000.00
Other financing –related cash received 0.00 0.00
Sub-total of cash inflow from financing activities 3000000.00 50572000.00
Cash to repay debts 49284364.34 0.00
Cash paid as dividend profit or interests 44088760.65 40857882.81
Including: Dividend and profit paid by subsidiaries to minor
shareholders 0.00 0.00
Other cash paid for financing activities 4141770.57 0.00
Sub-total of cash outflow due to financing activities 97514895.56 40857882.81
Net cash flow generated by financing -94514895.56 9714117.19
IV. Influence of exchange rate alternation on cash and cash
equivalents -318751.44 713784.26
V.Net increase of cash and cash equivalents -528791098.47 46252547.23
Add: balance of cash and cash equivalents at the beginning of term 874474834.46 302408433.72
VI ..Balance of cash and cash equivalents at the end of term 345683735.99 348660980.95
6. Cash Flow Statement of the Parent Company
In RMB
Items The first half year of 2023 The first half year of 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 39612023.57 30439993.40
Tax returned 1636664.57 200005.60
Other cash received from business operation 1679622.51 8775816.77
Sub-total of cash inflow 42928310.65 39415815.77
Cash paid for purchasing of merchandise and services 6111142.09 5066002.25
Cash paid to staffs or paid for staffs 22248006.25 16859518.32
Taxes paid 12755344.10 3475718.60
64Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Other cash paid for business activities 3654514.20 9214911.23
Sub-total of cash outflow from business activities 44769006.64 34616150.40
Net cash generated from /used in operating activities -1840695.99 4799665.37
II. Cash flow generated by investing
Cash received from investment retrieving 0.00 0.00
Cash received as investment gains 1456000.00 2636054.80
Net cash retrieved from disposal of fixed assets intangible assets
and other long-term assets 0.00 0.00
Net cash received from disposal of subsidiaries or other operational
units 0.00 0.00
Other investment-related cash received 135000000.00 635000000.00
Sub-total of cash inflow due to investment activities 136456000.00 637636054.80
Cash paid for construction of fixed assets intangible assets and
other long-term assets 512293.90 238180.00
Cash paid as investment 0.00 0.00
Net cash received from subsidiaries and other operational units 0.00
Other cash paid for investment activities 401537000.00 650000001.00
Sub-total of cash outflow due to investment activities 402049293.90 650238181.00
Net cash flow generated by investment -265593293.90 -12602126.20
III. Cash flow generated by financing
Cash received as investment
Cash received as loans
Other financing –related ash received
Sub-total of cash inflow from financing activities
Cash to repay debts
Cash paid as dividend profit or interests 30406699.21 25326092.45
Other cash paid for financing activities 0.00 0.00
Sub-total of cash outflow due to financing activities 30406699.21 25326092.45
Net cash flow generated by financing -30406699.21 -25326092.45
IV. Influence of exchange rate alternation on cash and cash
equivalents -27939.81 0.00
V.Net increase of cash and cash equivalents -297868628.91 -33128553.28
Add: balance of cash and cash equivalents at the beginning of term 310322528.19 130236340.98
VI ..Balance of cash and cash equivalents at the end of term 12453899.28 97107787.70
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity Oth Min Tota
instrument Less er Co or l of
Items Shar Pre Capi : Co
Spe Surp mm Reta shar own
e ferr Sus tal Shar mpr
ciali on ehol
Capi Oth rese es in ehen zed
lus risk ined Oth Subt ders’ ers’rese prof er otal equi
tal ed tain er rves stoc sive rese rves prov it equistoc abl tyk Inco rve isio ty
k e me n
65Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
deb
t
506196109100170284118403
I .Balance at
the end of 521 159 596 909 636 926 177 104
last year 849. 982 609. 661. 610. 455 777 232
004.633132955.210.215.42
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Merger of
entities under
common
control
Other
II. Balance at 506 196 109 100 170 284 118 403
the 521 159 596 909 636 926 177 104
beginning of 849. 982 609. 661. 610. 455 777 232
current year 00 4.63 31 32 95 5.21 0.21 5.42
159221
III .Changed 233 591 614
in the current 987 481590. 585 944
year 35.6 78.480 2.03 2.83
69
363365159525
（1）Total 233 071 407 987 394
comprehensi 590.ve income 62.9 53.7 35.6 89.480
7763（II）
Investment
or decreasing
of capital by
owners
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3．Amount
of shares
paid and
accounted as
owners’
equity
4．Other
---
303303303（III）Profit
allotment 913 913 913
10.910.910.9
444
1.Providing
of surplus
reserves
66Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
2.Providing
of common
risk
provisions
---
3．Allotmen 303 303 303
t to the
owners (or 913 913 913
shareholders) 10.9 10.9 10.9
444
4．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V). Special
reserves
1. Provided
this year
2．Used this
term（VI）Other
506196109100176285119405
IV. Balance
at the end of 521 159 830 909 552 541 777 319
this term 849. 982 200. 661. 462. 399 650 050
004.631132988.045.873.91
Amount in last year
In RMB
The first half year of 2022
Items Owner’s equity Attributable to the Parent Company Min Tota
Shar Other Equity Capi Less Oth Spe Surp Co Reta Oth Subt or l of
e instrument tal : er ciali lus mm ined er otal shar own
67Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Capi Pref rese Shar Co zed rese on prof ehol ers’tal erre rves es in mpr rese rves risk it ders’ equiSust
d Oth stoc ehen rve prov equi tyaina
stoc ble er
k sive isio ty
k Inco ndebt me
506196119982130281114396
I .Balance at
the end of 521 159 682 458 746 679 703 382
last year 849. 982 119. 45.4 251. 588 335 924
004.63057749.897.187.07
Add: Change
of
accounti 0.00
ng
policy
Correcting of
previous 0.00
errors
Merger of
entities under
common 0.00
control
Other 0.00
II.Balance at 506 196 119 982 130 281 114 396
the 521 159 682 458 746 679 703 382
beginning of 849. 982 119. 45.4 251. 588 335 924
current year 00 4.63 05 7 74 9.89 7.18 7.07
171171276448
III .Changed 757
in the current 074 831 711 54356.0
year 32.6 88.6 85.7 74.42
5785
424425276701
（1）Total 757 335 092 711 804
comprehensi 56.0
ve income 25.1 81.1 85.7 66.92
0280（II）
Investment
or decreasing 0.00
of capital by
owners
1．Ordinary
Shares invest
ed by shareh 0.00
olders
2．Holders o
f other equity
instruments i 0.00
nvested capit
al
3．Amount
of shares
paid and
accounted as 0.00
owners’
equity
4．Other 0.00
---
III Profit 253 253 253（ ）
allotment 260 260 260
92.492.492.4
555
68Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
1.Providing
of surplus
reserves
2.Providing
of common
risk
provisions
---
3．Allotmen 253 253 253
t to the
owners (or 260 260 260
shareholders) 92.4 92.4 92.4
555
4．Other 0.00
(IV) Internal
transferring
of owners’ 0.00
equity
1.
Capitalizing
of capital
reserves (or 0.00
to capital
shares)
2.
Capitalizing
of surplus
reserves (or 0.00
to capital
shares)
3．Making
up losses by
surplus 0.00
reserves.
4.Change
amount of
defined
benefit plans
that carry 0.00
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over 0.00
retained
earnings
6．Other 0.00
(V). Special
reserves 0.00
1. Provided
this year 0.00
2．Used this
term 0.00（VI）Other 0.00
506196119982147283117400
IV. Balance
at the end of 521 159 757 458 853 397 470 868
this term 849. 982 875. 45.4 684. 907 454 362
004.63077398.562.961.52
69Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
The first half year of 2023
Other Equity instrument Other
Capita Less: Comp Specia Surplu Total
Items Share Prefer Sustai l Shares rehens lized s
Retain of
capital red Other reserv in ive reserv reserv
ed Other owner
nable
stock es stock Incom e es
profit s’
debt e equity
I.Balance at 5065 1577 9885 1009 6895 2973
the end of 2184 3929 5668. 0966 2736 2075
last year 9.00 75.96 75 1.32 8.58 23.61
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Other
II. Balance at
506515779885100968952973
the 2184 3929 5668. 0966 2736 2075
beginning of 9.00 75.96 75 1.32 8.58 23.61
current year
--
III .Changed 5495 1671 1666
in the current 0.70 9201. 4250.year 06 36
（I）Total 1367 13725495
comprehensi 2109. 7060.ve income 0.70 88 58
(II)
Investment
or decreasing
of capital by
owners
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3.Amount of
shares paid
and
accounted as
owners’
equity
4．Other
--（III）Profit
allotment 3039 3039
1310.1310.
70Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
9494
1.Providing
of surplus
reserves
2．Allotmen - -
t to the 3039 3039
owners (or 1310. 1310.shareholders) 94 94
3．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided
this year
2．Used this
term（VI）Other
IV. Balance 5065 1577 9891 1009 6728 2956
at the end of 2184 3929 0619. 0966 0816 5432
this term 9.00 75.96 45 1.32 7.52 73.25
Amount in last year
In RMB
The first half year of 2022
Other Equity instrument Other
Share Capita Less: Comp Specia Surplu
Total
Items Prefer l Shares rehens lized s Retain ofCapita
l red Sustai Other reserv in ive reserv reserv
ed Other owner
es stock Incom e es profit s’stock nable
e equity
71Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
debt
I.Balance at 5065 1577 1087 9824 6908 2981
the end of 2184 3929 6253 5845. 7911 8023
last year 9.00 75.96 8.39 47 8.40 27.22
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Other
II. Balance at
506515771087982469082981
the 2184 3929 6253 5845. 7911 8023
beginning of 9.00 75.96 8.39 47 8.40 27.22
current year
--
III. Changed 7575 1976 1969
in the current 6.02 6851. 1095.year 58 56
（I）Total 5559 56347575
comprehensi 240.8 996.8
ve income 6.02 7 9
(II)
Investment
or decreasing
of capital by
owners
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3.Amount of
shares paid
and
accounted as
owners’
equity
4．Other
--（III）Profit 2532 2532
allotment 6092. 6092.
4545
1.Providing
of surplus
reserves
2．Allotmen - -
t to the 2532 2532
owners (or 6092. 6092.shareholders) 45 45
3．Other
(IV) Internal
transferring
72Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided
this year
2．Used this
term（VI）Other
IV. Balance 5065 1577 1088 9824 6711 2962
at the end of 2184 3929 3829 5845. 1226 11123
this term 9.00 75.96 4.41 47 6.82 1.66
III. Basic Information of the Company
Shenzhen Textile (Holdings) Co. Ltd (hereinafter referred to as "the Company") is a company limited by
shares registered in Guangdong Province formerly known as Shenzhen Textile Industry Company and
established in 1984. The Company was listed on the Shenzhen Stock Exchange in August 1994. The Company
publicly issued RMB ordinary shares (A shares) and domestic listed foreign capital shares (B shares) to the
domestic and foreign public respectively and listed them for trading.Headquartered in Shenzhen Guangdong Province the main business of the Company and its subsidiaries
(hereinafter referred to as "the Group") includes the research and development production and marketing of
polarizers for liquid crystal display as well as property management business mainly located in the prosperous
commercial area of Shenzhen and textile and garment business.Details of the scope of the consolidated financial statement for the year are set out in the Note (X)
9"Interests in other entities". Changes in the scope of the consolidated financial statement for the year are set
out in Note (X)8 "Changes in the Scope of Consolidation".
73Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
IV.Basis for the preparation of financial statements
（1）Basis for the preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance and its application guidelines interpretations and other relevant
provisions (collectively referred to as the "Accounting Standards for Business Enterprises"). In addition the
Company also disclosed relevant financial information in accordance with the Rules No.15 for the Information
Disclosure and Compilation of Companies Offering Securities Public Issuance - General Provisions on
Financial Report (revised in 2014) issued by China Securities Regulatory Commission.
(2) Continuous operation
The Group evaluated its ability to continue as a going concern for the 12 months from 31 December 2022
and found no matters or circumstances that raised significant doubts about its ability to continue as a going
concern. Accordingly the present financial report has been prepared on the basis of going concern assumptions.
(3) Bookkeeping basis and pricing principle
The Group's accounting is based on the accrual basis. Except for certain financial instruments-which are
measured at fair value the financial report uses the historical cost as the measurement basis. If the asset is
impaired the corresponding impairment provision will be made in accordance with the relevant regulations.Under historical cost measurement an asset is measured at the fair value of the amount of cash or cash
equivalents paid or the consideration paid at the time of acquisition. Liabilities are measured by the amount of
money or assets actually received as a result of the present obligation is assumed or the contractual amount of
the present obligation is incurred or the amount of cash or cash equivalents expected to be paid in the ordinary
course of life to repay the liability.Fair value is the price that market participants shall have to receive for the sale of an asset or shall to pay
for a transfer of a liability in an orderly transaction that occurs on the measurement date. Whether the fair value
is observable or estimated using valuation techniques the fair value measured and disclosed in this financial
report is determined on that basis.For financial assets that use the transaction price as the fair value at the time of initial recognition and a
valuation technique involving unobservable inputs is used in subsequent measures of fair value the valuation
technique is corrected during the valuation process so that the initial recognition result determined by the
valuation technique is equal to the transaction price.Fair value measurement is divided into three levels as to the observability of fair value inputs and the
importance of such inputs to fair value measurement as a value inputs and the importance of such inputs to fair
value measurement as a whole:
The first level of input is the unadjusted quotation of the same asset or liability in an active market that can
be obtained at the measurement date.The second-level input value is the input value that is directly or indirectly observable for the underlying
asset or liability in addition to the first-level input.The third level input value is the unobservable input value of the underlying asset or liability.V. Important accounting policies and accounting estimates
74Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
1.Statement of compliance with accounting standards for business enterprises
The financial report prepared by the Company complies with the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflects the consolidated and parent financial
position of the Company as of June 30 2023 and the consolidated and parent operating results the consolidated
and parent shareholders' equity changes and the consolidated and parent cash flows for the first half 2023.
2. Accounting period
The Group's fiscal year is the Gregorian calendar year i.e. from January 1 to December 31 of each year.
3.Business cycle
The business cycle is the period from the time an enterprise purchases an asset for processing to the
realization of cash or cash equivalents. The Company's business cycle is 12 months.
4. The base currency of account
RMB is the currency in the main economic environment in which the Company and its domestic
subsidiaries operate and the Company and its domestic subsidiaries use RMB as the base accounting currency.The overseas subsidiaries of the Company determine RMB as their base accounting currency according to the
currency of the main economic environment in which they operate. The currency used by the Company in the
preparation of this financial report is RMB.
5. Accounting treatment of business combinations under the common control and under non-
common control
Business combinations are divided into business combinations under common control and business
combinations under non-common control.
（1） Business combinations under common control
The enterprises participating in the merger are ultimately controlled by the same party or multiple parties
before and after the merger and the control is not temporary therefore it is a business combination under the
common control.Assets and liabilities acquired in a business combination are measured at their carrying value on the
consolidated party at the date of consolidation. The difference between the carrying amount of net assets
acquired by the merging party and the carrying amount of the merger consideration paid is adjusted for the
equity premium in the capital reserve or for retained earnings if the equity premium is insufficient to be offset.Direct carrying value on the consolidated party at the date of consolidation. The difference between the
carrying amount of net assets acquired by the merging party and the carrying amount of the merger
consideration paid is adjusted for the equity premium in the capital reserve or for retained earnings if the equity
premium is insufficient to be offset.Direct expenses incurred in connection with the business combination are recognized in profit or loss for
the period when incurred.
（2）Business combinations and goodwill under non-common control
The enterprises participating in a merger are not ultimately controlled by the same party or multiple parties
before and after the merger therefore it is a business combination under non-common control.
75Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Consolidation cost is the fair value of assets paid liabilities incurred or assumed and equity instruments
issued to gain control of the acquired party by the purchaser. Intermediary fees such as auditing legal services
valuation consulting and other related management expenses incurred by the purchaser for the business
combination are recognized in the profit or loss of the period when incurred.The identifiable assets liabilities and contingent liabilities of the acquiree that are eligible for recognition
acquired by the purchaser in the merger are measured at fair value at the date of purchase.The cost of the merger is greater than the difference in the fair value share of the acquiree's identifiable net
assets acquired in the merger which is recognized as goodwill as an asset and initially measured at cost. If the
cost of the merger is less than the fair value share of the acquiree's identifiable net assets acquired in the merger
the fair value of the acquired acquiree's identifiable assets liabilities and contingent liabilities and the
measurement of the cost of the merger are first reviewed and if the consolidated cost after review is still less
than the fair value share of the acquiree's identifiable net assets share acquired in the merger which shall be
included in profit or loss for the period occurred.Goodwill resulting from business combinations is presented separately in the consolidated financial
statement and measured at cost less accumulated impairment provisions.
6. Methodology for the preparation of consolidated financial statement
The consolidated scope of the consolidated financial statement is determined on a control basis. Control
means that the investor has power over the investee enjoys variable returns by participating in the investee's
related activities and has the ability to use its power over the investee to influence the amount of its return. The
Group will reassess once changes in the relevant facts and circumstances result in a change in the relevant
elements covered by the above definition of control.The merger of subsidiaries begins when the Group acquires control of the subsidiary and terminates when
the Group loses control of the subsidiary.For subsidiaries disposed of by the Group the results of operations and cash flows prior to the date of
disposal (the date of loss of control) have been duly included in the consolidated statement of income and the
consolidated statement of cash flows.For subsidiaries acquired through a business combination under non-common control the results of
operations and cash flows from the date of purchase (the date of acquisition of control) have been appropriately
included in the consolidated statement of income and the consolidated statement of cash flows.For subsidiaries acquired through a business combination under common control regardless of when the
business combination takes place in any point of the reporting period the subsidiary shall be deemed to be
included in the scope of the Group's consolidation on the date on which the subsidiary is under the control of
the ultimate controlling party the results of operations and cash flows from the beginning of the earliest period
of the reporting period are duly included in the consolidated income statement and the consolidated statement of
cash flows.The principal accounting policies and the accounting periods adopted by the subsidiaries are determined in
accordance with the accounting policies and accounting periods uniformly prescribed by the Company.The impact of the Company's internal transactions with its subsidiaries and between subsidiaries on the
consolidated financial statement is offset at the time of consolidation.
76Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
The shares of the subsidiary's ownership interest that are not part of the parent company are shown as
minority interests under the item "minority interests" under the item on shareholders' equityin the consolidated
balance sheet. The shares of the subsidiary's net profit or loss for the period that belongs to minority interests is
shown under the item "minority profit and loss" under the net profit item in the consolidated statement of
income.The minority shareholders’ share of the subsidiary's losses exceeds the minority shareholders’ share of
ownership interest enjoyed in the beginning of the period and its balance is still offset by the minority
shareholders’ equity.For transactions that purchase minority stakes in a subsidiary or dispose of part of the equity investment
without losing control of the subsidiary it’s accounted as equity transactions and the carrying amount of the
owner's interest and minority interest attributable to the parent company is adjusted to reflect their change in the
relevant interest in the subsidiary. The difference between the adjustment of minority interests and the fair value
of the consideration paid/received is adjusted to the capital reserve and if the capital reserve is insufficient to
offset it then it’s adjusted to the retained earnings.
7. Classification of joint venture arrangement classifications and accounting treatment methods for
joint operations
Joint arrangements are divided into commonly-operated ventures and jointly-operated ventures which are
determined in accordance with the rights and obligations of the joint venture parties in the joint venture
arrangement by taking into account factors such as the structure legal form and contractual terms of the
arrangement. Commonly-operated refers to a joint arrangement in which the joint venture parties enjoy the
assets related to the arrangement and bear the liabilities related to the arrangement. The jointly-operated is a
joint arrangement in which the joint venture party has rights only to the net assets of the joint arrangement.The Group's investments in joint ventures are accounted by using the equity method please see Note (X)5
22"Long-term equity investments ".(3) subsequent measurement and profit and loss recognition method 2)
Long-term equity investment calculated by the equity method ".
8. Standards for determining cash and cash equivalents
Cash refers to cash on hand and deposits that can be used to pay at any time. Cash equivalents refer to
investments held by the Group for a short period (generally within three months from the date of purchase)
highly liquid easily convertible into a known amount of cash and with little risk of change in value.
9.Foreign currency transactions and translation of foreign currency statements
（1） Foreign Currency Business
Foreign currency transactions are initially recognized at an exchange rate similar to the spot exchange rate
on the date of the transaction and the exchange rate similar to the spot rate on the date of the transaction is
determined in a systematic and reasonable manner.At the balance sheet date foreign currency monetary items are converted into RMB using the spot
exchange rate on that date and the exchange difference arising from the difference between the spot exchange
rate on that date and the spot exchange rate at the time of initial recognition or the day preceding the balance
77Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
sheet date except: (1) the exchange difference of foreign currency special borrowings eligible for capitalization
is capitalized during the capitalization period and included in the cost of the underlying asset; (2) The exchange
difference of hedging instruments for hedging in order to avoid foreign exchange risk is treated according to the
hedge accounting method; (3) The exchange difference results from changes in other carrying balances other
than amortized cost for monetary items classified as measured at fair value and changes in which are included
in other comprehensive income it shall be recognized as profit or loss for the period.Where the preparation of the consolidated financial statement involves overseas operations if there are
foreign currency monetary items that substantially constitute net investment in overseas operations the
exchange difference arising from exchange rate changes is included in the "foreign currency statement
translation difference" item included in other comprehensive income; When disposing of overseas operations it
is included in the profit or loss of the period of disposal.Foreign currency non-monetary items measured at historical cost are still measured at the base currency
amount translated at the spot exchange rate on the date of the transaction. Foreign currency non-monetary items
measured at fair value are translated using the spot exchange rate on the fair value determination date and the
difference between the converted base currency amount and the original accounting currency amount is treated
as a change in fair value (including exchange rate changes) and recognized as profit or loss for the period or
recognized as other comprehensive income.
（2）Translation of Foreign Currency Financial Statements
For the purpose of preparing consolidated financial statement foreign currency financial statements for
overseas operations are converted into RMB statements in the following manner: all assets and liabilities in the
balance sheet are converted at the spot exchange rate at the balance sheet date; Shareholders' equity items are
converted at the spot exchange rate at the time of incurrence; All items in the income statement and items
reflecting the amount of profit distribution are converted at an exchange rate similar to the spot exchange rate
on the date of the transaction; The difference between the converted asset items and the total of liability items
and shareholders' equity items is recognized as other comprehensive income and included in shareholders'
equity.Foreign currency cash flows and cash flows of overseas subsidiaries are translated using exchange rates
similar to the spot exchange rate on the occurrence date of cash flow and the impact amount of exchange rate
changes on cash and cash equivalents is used as a reconciliation item and is shown separately in the statement
of cash flows as "Impact of exchange rate changes on cash and cash equivalents".The prior-year year-end amounts and the prior-year actual are presented on the basis of the amounts
converted from the prior-year financial statement.Where the Group losses control of overseas operations due to disposing of all the ownership interests in
overseas operations or the disposal of part of the equity investment or other reasons the difference in the
translation of the foreign currency statements in the ownership interests attributable to the parent company
related to the overseas operations shown below the items of shareholders' equity in the balance sheet shall be
transferred to the profit or loss of the period of disposal.Where the proportion of equity interests held in overseas operations decreases due to the disposal of part of
the equity investment or other reasons without lost the control of the overseas operations the difference in the
translation of foreign currency statements related to the disposal part of the overseas operations shall be
attributed to the minority shareholders' interests and shall not be transferred to the profit or loss of the period.Where disposing of part of the equity of an overseas operation in an associate or a joint venture the difference
78Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
in the translation of foreign currency statements related to the overseas operation shall be transferred to the
profit or loss of the period of disposal according to the proportion of the disposal of the overseas operation.
10.Financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to a financial
instrument contract.In the case of the purchase or sale of financial assets in the usual manner it shall recognize the assets to be
received and the liabilities to be incurred on the transaction date or derecognize the assets sold on the
transaction date.Financial assets and financial liabilities are measured at fair value at initial recognition. For financial assets
and financial liabilities measured at fair value and changes in which are recorded in profit or loss for the period
the related transaction costs are recognized directly in profit or loss for the period; For other categories of
financial assets and financial liabilities the related transaction costs are included in the initial recognition
amount. Where the Group initially recognizes accounts receivable that do not contain a material financing
component or do not take into account the financing component in a contract not older than one year in
accordance with No. 14Accounting Standard for Business Enterprises-Revenue (the "Revenue Standard") the
initial measurement is made at the transaction price as defined by the revenue standard.The effective interest rate method refers to the method of calculating the amortized cost of financial assets
or financial liabilities and apportioning interest income or interest expense into each accounting period.The effective interest rate is the interest rate used to discount the estimated future cash flows of a financial
asset or financial liability over the expected life of the financial asset to the carrying balance of the financial
asset or the amortized cost of the financial liability. In determining the effective interest rate the expected cash
flow is estimated taking into account all contractual terms of the financial asset or financial liability (such as
early repayment rollover call option or other similar option etc.) without taking into account the expected
credit loss.The amortized cost of a financial asset or financial liability is the amount initially recognized less the
principal repaid plus or minus the accumulated amortization resulting from the amortization of the difference
between the initial recognition amount and the amount due date using the effective interest rate method and
then deduct the accumulated provision for losses (for financial assets only).
（1）Classification recognition and measurement of financial assets
After initial recognition the Group conducts subsequent measurements of different classes of financial
assets at amortized cost measured at fair value and changes in which are recognized in other comprehensive
income or measured at fair value and changes in which are recorded in profit or loss for the period.The contractual clauses of a financial asset provide that the cash flows generated on a given date are only
the payment of principal and interest based on the outstanding principal amount and the Group's business
model is aimed for managing the financial asset is to collect contractual cash flows then the Group classifies
the financial asset as a financial asset measured at amortized cost. Such financial assets mainly include
monetary funds notes receivable accounts receivable and other receivables.The contractual terms of a financial asset provide that the cash flows generated at a particular date are only
the payment of principal and interest based on the outstanding principal amount and the Group's business
79Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
model for managing the financial asset is aimed at both the receipt of contractual cash flows and the sale of the
financial asset then the financial asset is classified as a financial asset measured at fair value and the change
therein is recognized in other comprehensive income. Such financial assets with a maturity of more than one
year from the date of acquisition are listed as other debt investments and if they mature within one year
(inclusive) from the balance sheet date they are shown as non-current assets maturing within one year;
Accounts receivable and notes receivable classified as measured at fair value and changes in which are
recognized in other comprehensive income at the time of acquisition are shown in receivables financing and the
other acquired with a maturity of one year (inclusive) are shown in other current assets.At initial recognition the Group may irrevocably designate investments in non-tradable equity instruments
other than contingent consideration recognized in business combinations that are under non-common control as
financial assets measured at fair value and changes in which are recognized in other comprehensive income on a
single financial asset basis. Such financial assets are listed as investments in other equity instruments.Where a financial asset meets any of the following conditions it indicates that the Group's purpose in
holding the financial asset is transactional:
The purpose of acquiring the underlying financial asset is primarily for the purpose of the recent sale.The underlying financial assets were part of a centrally managed portfolio of identifiable financial
instruments at the time of initial recognition and there was objective evidence of an actual pattern of short-term
profits in the recent.The underlying financial asset is a derivative instrument except for derivatives that meet the definition of a
financial guarantee contract and derivatives that are designated as effective hedging instruments.Financial assets measured at fair value and changes in which are recorded in profit or loss for the period
include financial assets classified as measured at fair value and changes in which are recorded in profit or loss
for the period and financial assets designated as measured at fair value and changes in which are recorded in
profit or loss for the period:
Financial assets that do not qualify as financial assets measured at amortized cost and financial assets
measured at fair value and changes in which are included in other comprehensive income are classified as
financial assets measured at fair value and changes in which are recorded in profit or loss for the period.At the time of initial recognition in order to eliminate or significantly reduce accounting mismatches the
Group may irrevocably designate financial assets as financial assets measured at fair value and changes in
which are recorded in profit or loss for the period.Financial assets measured at fair value and changes in which are recorded in profit or loss for the period
are shown in trading financial assets and financial assets with maturity of more than one year (or have an
indefinite maturity) from the balance sheet date and expected to be held for more than one year is shown as
other non-current financial assets
1）Financial assets measured at amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using the effective
interest rate method and the gains or losses arising from impairment or derecognition are included in profit or
loss for the period.The Group recognizes interest income on financial assets measured at amortized cost in accordance with the
effective interest rate method. For financial assets purchased or derived that have incurred credit impairment
80Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
the Group determines interest income based on the amortized cost of the financial asset and the credit-adjusted
effective interest rate from the initial recognition. In addition the Group determines interest income based on
the carrying balance of financial assets multiplied by the effective interest rate.
2）Financial assets measured at fair value and changes in which are recorded in other comprehensive income
Impairment losses or gains and interest income calculated using the effective interest rate method related to
financial assets classified as measured at fair value and changes in which are included in other comprehensive
income are recognized in profit or loss for the period and except that changes in the fair value of such financial
assets are recognized in other comprehensive income. The amount of the financial asset recognized in profit or
loss for each period is equal to the amount that is recognized in profit or loss for each period as if it had been
measured at amortized cost. When the financial asset is derecognized the accumulated gain or loss previously
recognized in other comprehensive income is transferred from other comprehensive income and recognized in
profit or loss for the period.Changes in fair value in investments in non-traded equity instruments designated as measured at fair value and
the change in which are recognized in other comprehensive income are recognized in other comprehensive
income and when the financial asset is derecognized the accumulated gain or loss previously recognized in
other comprehensive income is transferred from other comprehensive income to retained earnings. During the
period during which the Group holds the investment in the non-tradable equity instrument the dividend income
is recognized and recorded in profit or loss for the period when the Group's right to receive dividends has been
established the economic benefits associated with the dividends are likely to flow into the Group and the
amount of the dividends can be reliably measured.
3）Financial assets measured at fair value and changes in which are recorded in profit or loss for the period
Financial assets measured at fair value and changes in which are recorded in profit or loss for the period are
subsequently measured at fair value and gains or losses resulting from changes in fair value and dividends and
interest income related to the financial asset are recorded in profit or loss for the period.
（2）Impairment of Financial Instruments
The Group performs impairment accounting and recognizes loss provisions for financial assets measured at
amortized cost financial assets classified as measured at fair value and changes in which are recognized in
other comprehensive income and lease receivables based on expected credit losses.The Group measures the loss provision at an amount equivalent to the expected credit loss over the life of
notes receivable and accounts receivable formed by transactions regulated by revenue standards that do not
contain a material financing element or do not take into account the financing component of contracts not
exceeding one year as well as operating leases receivable arising from transactions regulated by No.
21Accounting Standard for Business Enterprises -Leases.
For other financial instruments the Group assesses the change in the credit risk of the relevant financial
instruments since initial recognition at each balance sheet date except for financial assets purchased or derived
that have incurred credit impairment. If the credit risk of the Financial Instrument has increased significantly
since the initial recognition the Group measures its loss provision by an amount equivalent to the expected
credit loss over the life of the financial instrument; If the credit risk of the financial instrument does not increase
significantly since the initial recognition the Group measures its loss provision by an amount equivalent to the
expected credit loss of the financial instrument in the next 12 months. Increases or reversals of credit loss
provisions are recognized as impairment losses or gains in profit or loss for the period except for financial
81Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
assets classified as measured at fair value and changes in which are recognized in other comprehensive income.For financial assets classified as measured at fair value and the change thereof is recorded in other
comprehensive income the Group recognizes a credit loss provision in other comprehensive income and
includes impairment losses or gains in profit or loss for the period without reducing the carrying amount of the
financial asset as shown in the balance sheet.Where the Group has measured a loss provision in the preceding accounting period by an amount
equivalent to the expected credit loss over the life of the financial instrument but the financial instrument is no
longer subject to a significant increase in credit risk since the initial recognition at the period balance sheet date
the Group measures the loss provision for the financial instrument at the period balance sheet date by an amount
equivalent to the expected credit loss in the next 12 months and the resulting reversal amount for loss provision
is recognized as an impairment gain in profit or loss for the period.
1）Significant increase in credit risk
Using reasonably and evidence-based forward-looking information available the Group compares the risk of
default on financial instruments at the balance sheet date with the risk of default on the initial recognition date
to determine whether the credit risk of financial instruments has increased significantly since initial
recognition.In assessing whether credit risk has increased significantly the Group will consider the following factors:
(1) whether the internal price indicators have changed significantly due to changes in credit risk.
(2) whether the interest rate or other terms of an existing financial instrument have changed significantly (e.g.
stricter contractual terms additional collateral or higher yields) if the existing financial instrument is derived
or issued as a new financial instrument at the balance sheet date.
(3) whether there has been a significant change in the external market indicators of the credit risk of the same
financial instrument or similar financial instruments with the same estimated duration. These indicators
include: credit spreads credit default swap prices for borrowers the length and extent to which the fair value
of financial assets is less than their amortized cost and other market information relevant to borrowers (such
as changes in the price of borrowers' debt or equity instruments).
(4) whether there has been a significant change in the external credit rating of the financial instrument in
fact or expectation.
(5) whether the actual or expected internal credit rating of the debtor has been downgraded.
(6) whether there has been an adverse change in business financial or economic circumstances that is
expected to result in a significant change in the debtor's ability to meet its debt servicing obligations.
(7) whether there has been a significant change in the actual or expected operating results of the debtor.
(8) whether the credit risk of other financial instruments issued by the same debtor has increased
significantly.
82Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
(9) whether there has been a significant adverse change in the regulatory economic or technical
environment in which the debtor is located.
(10) whether there has been a significant change in the value of the collateral used as collateral for the debt
or in the quality of the guarantee or credit enhancement provided by a third party. These changes are expected
to reduce the economic incentive for the debtor to repay the loan within the term specified in the contract or
affect the probability of default.
(11) whether there has been a significant change in the economic incentive expected to reduce the
borrower's repayment within the term agreed in the contract.
(12) whether there has been a change in the expectations of the loan contract including the waiver or
amendment of contractual obligations that may result from the anticipated breach of the contract the granting of
interest-free periods interest rate jumps requests for additional collateral or guarantees or other changes to the
contractual framework of financial instruments.
(13) whether there has been a significant change in the debtor's expected performance and repayment
behavior.
(14) Whether the Group's credit management methods for financial instruments have changed.
Regardless of whether the credit risk has increased significantly after the above assessment when the
payment of a financial instrument contract has been overdue for more than (inclusive) 30 days it indicates that
the credit risk of the financial instrument has increased significantly.At the balance sheet date if the Group determines that a financial instrument has only a low credit risk the
Group assumes that the credit risk of the financial instrument has not increased significantly since its initial
recognition. A financial instrument is considered to have a low credit risk if it has a low risk of default the
borrower's ability to meet its contractual cash flow obligations in the short term is strong and even if there are
adverse changes in the economic situation and operating environment over a longer period of time that do not
necessarily reduce the borrower's performance of its contractual cash obligations.
2）Financial assets that have undergone credit impairment
Where one or more events occur in which the Group expects to adversely affect the future cash flows of a
financial asset the financial asset becomes a financial asset that has experienced credit impairment.Evidence that credit impairment of financial assets has occurred includes the following observable
information:
a) significant financial difficulties of the issuer or debtor;
b) Breach of contract by the debtor such as default or delay in payment of interest or principal;
c) The creditor gives the debtor concessions under economic or contractual considerations relating to the
debtor's financial difficulties that would not have been made under any other circumstances;
d) The debtor is likely to go bankrupt or undergo other financial restructuring;
e) The financial difficulties of the issuer or debtor that result in the disappearance of an active market for that
financial asset;
83Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
f) Purchase or derive a financial asset at a substantial discount that reflects the fact that a credit loss has
occurred.Based on the Group's internal credit risk management the Group considers an event of default to have
occurred when the internally advised or externally obtained information indicates that the debtor of the
financial instrument cannot fully pay creditors including the Group (without regard to any security obtained
by the Group).Notwithstanding the above assessment if a contract payment for a financial instrument is overdue for more
than 90 days(inclusive) the Group presumes that the financial instrument has defaulted.
3）Determination of Expected Credit Loss
The Group uses an impairment matrix on a portfolio basis on notes receivable accounts receivable and other
receivables to determine credit losses on relevant financial instruments. The Group classifies financial
instruments into different groups based on common risk characteristics. The common credit risk
characteristics adopted by the Group include: type of financial instrument credit risk rating type of
collateral date of initial recognition industry in which the debtor is in value of collateral relative to
financial assets etc.For financial assets and lease receivables the expected credit loss is the present value of the difference
between the contractual cash flows due to the Group and the cash flows expected to be collected.The reflection factors of the Group's methodology for measuring expected credit losses on financial
instruments include: an unbiased probability-weighted average amount determined by evaluating a range of
possible outcomes; the time value of money; reasonable and well-founded information about past events
current conditions and projections of future economic conditions that can be obtained at the balance sheet
date without unnecessary additional costs or efforts.
4）Write-down of Financial Assets
Where the Group no longer reasonably expects that the contractual cash flows of financial assets will be
recovered in whole or in part the carrying balance of the financial assets will be written down directly. Such
write-downs constitute derecognition of the underlying financial assets.
（3）Transfer of Financial Assets
Financial assets that meet one of the following conditions are derecognized: (1) the contractual right to
receive cash flows from the financial asset is terminated; (2) the financial asset has been transferred and
substantially all of the risks and rewards in the ownership of the financial asset have been transferred to the
transferring party; (3) the financial asset has been transferred and although the Group has neither transferred
nor retained substantially all of the risks and rewards in the ownership of the financial asset it has not retained
control over the financial asset.Where the Group neither transfers nor retains substantially all of the risks and rewards in ownership of a
financial asset and retains control of the financial asset it will continue to recognize the transferred financial
asset to the extent that it continues to be involved in the transferred financial asset and recognize the relevant
liabilities accordingly. The Group measures the relevant liabilities as follows:
84Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Where the transferred financial assets are measured at amortized cost the carrying amount of the relevant
liability is equal to the carrying amount of the financial asset that continues to be involved in the transferred less
the amortized cost of the rights retained by the Group (if the Group retains the relevant rights as a result of the
transfer of financial assets) plus the amortized cost of the obligations assumed by the group (if the group has
assumed the relevant obligations as a result of the transfer of financial assets) and the relevant liabilities are not
designated as financial liabilities measured at fair value and changes in which are recorded in profit or loss for
the period.Where the transferred financial assets are measured at fair value the carrying amount of the relevant
liabilities is equal to the carrying amount of the financial assets that continue to be involved in the transferred
financial assets less the fair value of the rights retained by the Group (if the Group retains the relevant rights as
a result of the transfer of financial assets) plus the fair value of the obligations assumed by the Group (if the
Group has assumed such obligations as a result of the transfer of financial assets) the fair value of such rights
and obligations is the fair value when measured on an independent basis.If the overall transfer of financial assets satisfies the conditions for derecognition the difference between
the carrying amount of the transferred financial assets at the derecognition date and the consideration received
as a result of the transfer of the financial and the sum of the amount corresponding to the derecognition portion
of the accumulated fair value change originally included in other comprehensive income is included in profit or
loss for the period. If the Group transfers financial assets that are investments in non-traded equity instruments
designated as measured at fair value and changes in which are recognized in other comprehensive income the
accrued gains or losses previously recognized in other comprehensive income are transferred from other
comprehensive income and recorded in retained earnings.If a partial transfer of financial assets satisfies the conditions for derecognition the carrying amount of the
financial assets as a whole before the transfer is apportioned between the derecognized portion and the
continuing recognition portion at the respective relative fair value on the transfer date and the difference
between the sum of the amount of the consideration received in the derecognized portion and the amount
corresponding to the derecognized portion of the accumulated fair value change originally included in other
comprehensive income and the carrying amount of the derecognized portion at the derecognition date is
included in profit or loss for the current period. If the Group transfers financial assets that are investments in
non-traded equity instruments designated as measured at fair value and changes in which are recognized in
other comprehensive income the accrued gains or losses previously recognized in other comprehensive income
are transferred from other comprehensive income and recorded in retained earnings.If the conditions for derecognition are not met for the overall transfer of financial assets the Group
continues to recognize the transferred financial assets as a whole and recognizes the consideration received as a
liability.
（4）Classification of financial liabilities and equity instruments
The Group classifies the financial instruments or their components as financial liabilities or equity
instruments at initial recognition according to the contract terms of the financial instruments issued and their
economic essence not just in legal form combined with the definitions of financial liabilities and equity
instruments.
1) Classification recognition and measurement of financial liabilities
85Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Financial liabilities are divided into financial liabilities measured at fair value and whose changes are
included in current profits and losses at initial recognition and other financial liabilities.
1 Financial liabilities measured at fair value and whose changes are included in the current profits and losses
Financial liabilities measured at fair value and whose changes are included in current profits and losses
include transactional financial liabilities (including derivatives belonging to financial liabilities) and
financial liabilities designated as measured at fair value and whose changes are included in current profits
and losses. Except for derivative financial liabilities which are listed separately financial liabilities
measured at fair value and whose changes are included in current profits and losses are listed as
transactional financial liabilities.Financial liabilities that meet one of the following conditions indicate that the purpose of the Group's
financial liabilities is transactional:
The purpose of undertaking relevant financial liabilities is mainly to repurchase in the near future.The relevant financial liabilities are part of the identifiable financial instrument portfolio under centralized
management at the initial recognition and there is objective evidence to show the actual short-term profit
model in the near future.Related financial liabilities are derivatives. Except for derivatives that meet the definition of financial
guarantee contract and derivatives that are designated as effective hedging instruments.The Group can designate financial liabilities that meet one of the following conditions as financial liabilities
measured at fair value and whose changes are included in current profits and losses at initial recognition: (1)
The designation can eliminate or significantly reduce accounting mismatch; (2) According to the risk
management or investment strategy stated in the formal written documents of the Group the financial
liability portfolio or the portfolio of financial assets and financial liabilities are managed and evaluated on
the basis of fair value and reported to key management personnel within the Group on this basis; (3)
Qualified mixed contracts containing embedded derivatives.Transactional financial liabilities are subsequently measured at fair value and gains or losses caused by
changes in fair value and dividends or interest expenses related to these financial liabilities are included in
current profits and losses.For financial liabilities designated as being measured at fair value and whose changes are included in the
current profits and losses the changes in fair value of the financial liabilities caused by changes in the
Group's own credit risk are included in other comprehensive income and other changes in fair value are
included in the current profits and losses. When the financial liabilities are derecognized the accumulated
change of its fair value caused by the change of their own credit risk previously included in other
comprehensive income is carried forward to retained income. Dividends or interest expenses related to
these financial liabilities are included in the current profits and losses. If the accounting mismatch in profit
and loss will be caused or enlarged by handling the impact of the changes in credit risk of these financial
liabilities in the above way the Group will include all the gains or losses of the financial liabilities
(including the amount affected by the changes in credit risk) in the current profits and losses.
2 Other financial liabilities
Other financial liabilities except those caused by the transfer of financial assets that do not meet the
conditions for derecognition or continue to be involved in the transferred financial assets are classified as
86Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
financial liabilities measured in amortized cost and subsequently measured in amortized cost. The gains or
losses arising from derecognition or amortization are included in the current profits and losses.If the modification or renegotiation of the contract between the Group and the counterparty does not result
in the termination of the recognition of the financial liabilities that are subsequently measured according to
amortized cost but the cash flow of the contract changes the Group recalculates the book value of the financial
liabilities and records the relevant gains or losses into the current profits and losses. The recalculated book
value of such financial liabilities is determined by the Group according to the present value of discounted
contract cash flow that will be renegotiated or modified according to the original actual interest rate of the
financial liabilities. For all costs or expenses arising from the modification or renegotiation of the contract the
Group adjusts the book value of the modified financial liabilities and amortizes them within the remaining term
of the modified financial liabilities.
2) Derecognition of financial liabilities
If all or part of the current obligations of financial liabilities have been discharged the recognition of
financial liabilities or part thereof shall be terminated. If the Group (the Borrower) and the Lender will sign
an agreement to replace the original financial liabilities by undertaking new financial liabilities and the
contract terms of the new financial liabilities are substantially different from those of the original financial
liabilities the Group will derecognize the original financial liabilities and recognize the new financial
liabilities at the same time.If all or part of the financial liabilities are derecognized the difference between the book value of the
derecognized part and the consideration paid (including the transferred non-cash assets or the new financial
liabilities undertaken) will be included in the current profits and losses.
3) Equity instruments
Equity instruments refer to contracts that can prove that the Group has residual interests in assets after
deducting all liabilities. The issuance (including refinancing) repurchase sale or cancellation of equity
instruments by the Group are treated as changes in equity. The Group does not recognize changes in the
fair value of equity instruments. Transaction costs related to equity transactions are deducted from equity.The distribution of equity instrument holders by the Group is treated as profit distribution and the stock
dividends paid do not affect the total shareholders' equity.
（5）Offset of financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financial liabilities and
this legal right is currently enforceable and the Group plans to settle the financial assets on a net basis or realize
the financial assets and pay off the financial liabilities at the same time the financial assets and financial
liabilities are listed in the balance sheet at the amount after offsetting each other. In addition financial assets
and financial liabilities are listed separately in the balance sheet and do not offset each other.
11. Notes receivable
Please refer to the"10. Financial Instruments" of "V. Significant Accounting Policies and Accounting
Estimates" of "Section 10 Financial Reporting" of this report.
87Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
12. Accounts receivable
Please refer to the"10. Financial Instruments" of "V. Significant Accounting Policies and Accounting
Estimates" of "Section 10 Financial Reporting" of this report.
13. Receivable financing
For notes receivable classified as at fair value and whose changes are included in other comprehensive
income the part with a term of one year (including one year) from the date of acquisition is listed as receivable
financing; the part with a term of more than one year from the date of acquisition is listed as other creditor's
right investment. See Note (X) 5 "Financial Instruments" for relevant accounting policies.
14.Other account receivable
Determination method and accounting treatment method of expected credit loss of other receivables
Please refer to the"10. Financial Instruments" of "V. Significant Accounting Policies and Accounting
Estimates" of "Section 10 Financial Reporting" of this report.
15. Inventory
（1）Classification of inventory
The Group's inventory mainly includes raw materials products in process finished products and materials
entrusted for processing. Inventory is initially measured at cost which includes purchasing cost processing cost
and other expenses incurred to make inventory reach the current place and use state.
（2）Valuation method of issued inventory
When the inventory is issued the actual cost of the issued inventory is determined by the weighted mean
method.
（3）Determination basis of net realizable value of inventory
On the balance sheet date inventories are measured according to the lower of cost and net realizable value.When the net realizable value is lower than the cost the inventory depreciation provision is withdrawn.Net realizable value refers to the estimated selling price of inventory minus the estimated cost estimated
sales expenses and related taxes and fees at the time of completion in daily activities. When determining the net
realizable value of inventory it is based on the conclusive evidence obtained and the purpose of holding
inventory and the influence of events after the balance sheet date are also considered.Inventory depreciation provision is drawn according to the difference between the cost of a single
inventory item and its net realizable value.After the inventory depreciation provision is withdrawn if the influencing factors of previous write-down
of inventory value have disappeared resulting in the net realizable value of inventory being higher than its book
value it will be reversed within the original amount of inventory depreciation provision and the reversed
amount will be included in the current profits and losses.
（4）Inventory system
88Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
The inventory system is perpetual inventory system.
（5）Amortization method of low-value consumables and packaging materials
Turnover materials and low-value consumables are amortized by straight-line method or one-time write-
off method.
16.Contract assets
None
17.Contract Cost
None
18.Held-for-sale assets
None
19.Creditor's rights investment
None
20.Other Creditor's rights investment
None
21.Long-term account receivable
None
22. Long-term equity investment
（1）Criteria for joint control and important influence
Control means that the investor has the power over the investee enjoys variable returns by participating in
the related activities of the investee and has the ability to influence the amount of returns by using the power
over the investee. Joint control refers to the common control of an arrangement according to the relevant
agreement and that the related activities of the arrangement must be unanimously agreed by the participants
who share the control rights before making decisions. Significant influence refers to the power to participate in
decision-making on the financial and operating policies of the investee but it cannot control or jointly control
the formulation of these policies with other parties. When determining whether the investee can be controlled or
exert significant influence the potential voting rights factors such as convertible corporate bonds and current
executable warrants of the investee held by investors and other parties have been considered.
（2）Determination of initial investment cost
For the long-term equity investment obtained by business merger under the same control the initial
investment cost of the long-term equity investment shall be the share of the book value of the owners' equity of
the merged party in the consolidated financial statements of the final controlling party on the merger date. The
capital reserve shall be adjusted for the difference between the initial investment cost of long-term equity
89Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
investment and the book value of cash paid non-cash assets transferred and debts undertaken; If the capital
reserve is insufficient to be offset the retained income shall be adjusted. If equity securities are issued as the
merger consideration the initial investment cost of long-term equity investment shall be the share of the book
value of the owners' equity of the merged party in the consolidated financial statements of the final controlling
party on the merger date the share capital shall be the total face value of issued shares and the capital reserve
shall be adjusted according to the difference between the initial investment cost of long-term equity investment
and the total face value of the issued shares; If the capital reserve is insufficient to be offset the retained income
shall be adjusted.For the long-term equity investment obtained from the business merger not under the same control the
initial investment cost of the long-term equity investment shall be the merger cost on the purchase date.Intermediary expenses such as audit legal services evaluation and consultation and other related
management expenses incurred by the merging party or the purchaser for business merger are included in the
current profits and losses when incurred.Long-term equity investment obtained by other means except the long-term equity investment formed by
business merger shall be initially measured at cost. If the additional investment can exert a significant influence
or implement joint control which however does not constitute control on the investee the long-term equity
investment cost is the sum of the fair value of the original equity investment determined in accordance with the
Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments
plus the new investment cost.
（3）Subsequent measurement and profit and loss recognition method
1）Long-term equity investment calculated by cost method
The company's financial statements use the cost method to calculate the long-term equity investment in
subsidiaries. Subsidiaries refer to the invested entities over which the Group can exercise control.Long-term equity investment accounted by cost method is measured at the initial investment cost. Add or
recover investment to adjust the cost of long-term equity investment. The current investment income is
recognized according to the cash dividend or profit declared by the investee.
2）Long-term equity investment calculated by equity method
The Group's investment in associated enterprises and joint ventures is accounted for by the equity method. An
associated enterprise refers to the investee over which the Group can exert significant influence and a joint
venture refers to a joint venture arrangement in which the Group has rights only over the net assets of the
arrangement.When accounting by equity method if the initial investment cost of long-term equity investment is greater than
the fair value share of the identifiable net assets of the investee the initial investment cost of long-term equity
investment will not be adjusted; If the initial investment cost is less than the fair value share of the identifiable
net assets of the investee the difference shall be included in the current profits and losses and the cost of long-
term equity investment shall be adjusted.When accounting by the equity method the investment income and other comprehensive income are recognized
respectively according to the share of the net profit and loss and other comprehensive income realized by the
investee and the book value of long-term equity investment is adjusted; The share is calculated according to the
profit or cash dividend declared by the investee and the book value of long-term equity investment is reduced
90Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
accordingly; For other changes in the owners' equity of the investee except the net profit and loss other
comprehensive income and profit distribution the book value of the long-term equity investment shall be
adjusted and included in the capital reserve. When recognizing the share of the net profit and loss of the
investee the net profit of the investee shall be adjusted and recognized based on the fair value of the identifiable
assets of the investee at the time of investment. If the accounting policies and accounting periods adopted by the
investee are inconsistent with those of the Company the financial statements of the investee shall be adjusted
according to the accounting policies and accounting periods of the Company so as to recognize the investment
income and other comprehensive income. For the transactions between the Group and the associated enterprises
and joint ventures if the assets invested or sold do not constitute business the unrealized internal transaction
gains and losses shall be offset by the portion belonging to the Group according to the proportion enjoyed and
the investment gains and losses shall be recognized on this basis. However the unrealized internal transaction
losses between the Group and the investee belong to the impairment losses of the transferred assets and shall
not be offset.When recognizing the share of the net loss of the investee the book value of the long-term equity investment
and other long-term rights and interests that substantially constitute the net investment of the investee shall be
written down to zero. In addition if the Group is obligated to bear additional losses to the investee the
estimated liabilities will be recognized according to the expected obligations and included in the current
investment losses. If the investee realizes the net profit in the future the Group will resume the recognition of
the income share after the income share makes up for the unrecognized loss share.
（4）Disposal of long-term equity investment
When disposing of long-term equity investment the difference between its book value and the actual
purchase price is included in the current profits and losses. For the long-term equity investment accounted by
the equity method if the remaining equity after disposal is still accounted by the equity method other
comprehensive income originally accounted by the equity method shall be accounted for on the same basis as
the direct disposal of related assets or liabilities by the investee; Owners' equity recognized by changes in other
owners' equity of the investee except net profit and loss other comprehensive income and profit distribution
shall be carried forward to current profits and losses in proportion. If the long-term equity investment accounted
for by the cost method is still accounted for by the cost method after disposal the other comprehensive income
recognized by the equity method accounting or the recognition of financial instruments and accounting
standards before gaining control of the investee shall be accounted for on the same basis as the direct disposal
of related assets or liabilities by the investee; Changes in owners' equity other than net profit and loss other
comprehensive income and profit distribution in the net assets of the investee recognized by using the equity
method are carried forward to the current profits and losses in proportion.If the Group loses control of the investee due to the disposal of part of its equity investment if the
remaining equity after disposal can exercise joint control or exert significant influence on the investee in the
preparation of individual financial statements it shall be accounted for by the equity method instead and the
remaining equity shall be treated as if it were adjusted by the equity method at the time of acquisition; If the
remaining equity after disposal cannot be jointly controlled or exert significant influence on the investee it shall
be accounted for according to the relevant provisions of the standards for the recognition and measurement of
financial instruments and the difference between its fair value and book value on the date of control loss shall
be included in the current profits and losses. For other comprehensive income recognized by the Group before it
gains control of the investee when it loses control of the investee it shall be treated on the same basis as the
direct disposal of related assets or liabilities by the investee. Changes in owners' equity in the net assets of the
91Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
investee except net profit and loss other comprehensive income and profit distribution shall be carried forward
to current profits and losses when it loses control of the investee. If the remaining equity after disposal is
accounted by the equity method other comprehensive income and other owners' equity will be carried forward
in proportion; If the remaining equity after disposal is changed to accounting treatment according to the
recognition and measurement standards of financial instruments all other comprehensive income and other
owners' equity will be carried forward.If the Group loses joint control or significant influence on the investee due to the disposal of some equity
investments the remaining equity after disposal shall be accounted for according to the recognition and
measurement standards of financial instruments and the difference between its fair value and book value on the
date of joint control loss or significant influence shall be included in the current profits and losses. Other
comprehensive income recognized by the original equity investment due to accounting by the equity method
shall be accounted for on the same basis as the direct disposal of relevant assets or liabilities by the investee
when the equity method is terminated. All the owners' equity recognized by the investee due to changes in other
owners' equity except net profit and loss other comprehensive income and profit distribution shall be carried
forward to the current investment income when the equity method is terminated.The Group disposes of the equity investment in its subsidiaries step by step through multiple transactions
until it loses control. If the above transactions belong to a package transaction each transaction will be treated
as a transaction that disposes of the equity investment in its subsidiaries and loses control. Before losing control
the difference between the price of each disposal and the book value of the long-term equity investment
corresponding to the disposed equity will be recognized as other comprehensive income and then carried
forward to the current profits and losses when it loses control.
23. Investment real estate
Investment real estate refers to real estate held to earn rent or capital appreciation or both including rented
houses and buildings.Investment real estate is initially measured at cost. Subsequent expenditures related to investment real
estate are included in the cost of investment real estate if the economic benefits related to the asset are likely to
flow in and the cost can be measured reliably. Other subsequent expenditures are included in the current profits
and losses when incurred.The Group adopts the cost model for subsequent measurement of investment real estate and depreciates or
amortizes it according to the policy consistent with the right to use houses buildings or land.When the investment real estate is disposed of or permanently withdrawn from use and it is not expected
to obtain economic benefits from its disposal the recognition of the investment real estate will be terminated.The difference between the disposal income from the sale transfer scrapping or damage of investment real
estate after deducting its book value and related taxes is included in the current profits and losses.
24. Fixed assets
（1） Recognition conditions
Fixed assets refer to tangible assets held for producing goods providing services leasing or management
with a service life of more than one fiscal year. Fixed assets are recognized only when the economic benefits
related to them are likely to flow into the Group and their costs can be measured reliably. Fixed assets are
initially measured at cost.
92Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if the economic
benefits related to the fixed assets are likely to flow in and the cost can be measured reliably and the book
value of the replaced part shall be derecognized. Other subsequent expenditures are included in the current
profits and losses when incurred.
（2） Depreciation method
Fixed assets shall be depreciated within their service life by using the life-average method from the month
following the scheduled serviceable state. The depreciation methods service life estimated net salvage and
annual depreciation rate of various fixed assets are as follows:
Category Depreciation life (year) Estimated net salvage rate Annual depreciation rate(%) (%)
Houses and buildings 10-40 0.00-4.00 2.40-10.00
Machinery equipment 10-14 4.00 6.86-9.60
Transportation equipment 8 4.00 12.00
Electronic equipment and others 5 4.00 19.20
Estimated net salvage refers to the amount that the Group currently obtains from the disposal of fixed
assets after deducting the estimated disposal expenses assuming that the expected service life of the fixed assets
has expired and is in the expected state at the end of the service life.
（3）Other instructions
When the fixed assets are disposed of or it is expected that no economic benefits can be generated through
the use or disposal the fixed assets is derecognized. The difference between the disposal income from the sale
transfer scrapping or damage of fix assets after deducting its book value and related taxes is included in the
current profits and losses.At least at the end of the year the Group will review the service life estimated net salvage and
depreciation method of fixed assets and if there is any change it will be treated as a change in accounting
estimate.
（4）Cognizance evidence and pricing method of financial leasing fixed assets
None
25. Construction in progress
The construction in progress is measured according to the actual cost which includes various project
expenditures incurred during the construction period capitalized borrowing costs before the project reaches the
scheduled serviceable state and other related expenses. No depreciation is allowed for construction in progress.Construction in progress is carried forward to fixed assets after it reaches the scheduled serviceable state.
26. Borrowing costs
Borrowing costs that can be directly attributed to the purchase construction or production of assets that
meet the capitalization conditions will be capitalized when the asset expenditure has occurred the borrowing
costs have occurred and the necessary purchase construction or production activities to make the assets reach
the predetermined serviceable or saleable state have begun; Capitalization shall stop when the assets that meet
93Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
the capitalization conditions purchased constructed or produced reach the predetermined serviceable state or
saleable state. The remaining borrowing costs are recognized as expenses in the current period.
27.Biological Assets
None
28.Oil & Gas assets
None
29. Right to use assets
None
30. Intangible assets
（1） Valuation method service life and impairment test of intangible assets
Intangible assets include land use rights software and patent rights.Intangible assets are initially measured at cost. Intangible assets with limited service life shall be amortized
by straight-line method in equal installments within their expected service life from the time they are available
for use. Intangible assets with uncertain service life shall not be amortized. The amortization method service
life and estimated net salvage of various intangible assets are as follows:
Category Amortization method Service life (year) Estimated net salvagerate (%)
Land use right Straight-line method 50 -
Software Straight-line method 5 -
Patent Straight-line method 15 -
At the end of the period the service life and amortization method of intangible assets with limited service
life shall be reviewed and adjusted if necessary.For the impairment test of intangible assets please refer to Note (V) 19 "Impairment of Long-term Assets"
for details.
（2） Internal R&D expenditure
Expenditure in the research stage is included in the current profits and losses when incurred.Expenditures in the development stage are recognized as intangible assets if they meet the following
conditions at the same time. Expenditures in the development stage that cannot meet the following conditions
are included in the current profits and losses:
(1) It is technically feasible to complete the intangible assets so that they can be used or sold;
(2) Having the intention to complete the intangible assets and use or sell them;
94Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
(3) The ways in which intangible assets generate economic benefits including the ability to prove that the
products produced by using the intangible assets exist in the market or the intangible assets themselves exist in
the market and the intangible assets will be used internally which can prove their usefulness;
(4) Having sufficient technical financial and other resources to support the development of the intangible
assets and having the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of the intangible assets can be reliably measured.
If it is impossible to distinguish between research stage expenditure and development stage expenditure all
the R&D expenditures incurred shall be included in the current profits and losses. The cost of intangible assets
formed by internal development activities only includes the total expenditure from the time when the
capitalization conditions are met to the time when the intangible assets reach the intended use and the
expenditure that has been expensed into profit and loss before the capitalization conditions are met in the
development process will not be adjusted.
31. Long-term asset impairment
On each balance sheet date the Group checks whether there are signs that long-term equity investment
investment real estate measured by cost method fixed assets construction in progress right-to-use assets and
intangible assets with definite service life may be impaired. If these assets show signs of impairment the
recoverable amount is estimated. Intangible assets with uncertain service life and intangible assets that have not
yet reached the serviceable state are tested for impairment every year regardless of whether with signs of
impairment.Estimating the recoverable amount of an asset is based on a single asset. If it is difficult to estimate the
recoverable amount of a single asset the recoverable amount of the asset group is determined based on the asset
group to which the asset belongs. The recoverable amount is the higher of the net amount of the fair value of the
asset or asset group minus the disposal expenses or the present value of its expected future cash flow.If the recoverable amount of an asset is lower than its book value the asset impairment provision shall be
accrued according to the difference and included in the current profits and losses.Goodwill shall be tested for impairment at least at the end of each year. When testing the impairment of
goodwill it shall be conducted in combination with the related asset group or asset group portfolio. That is
from the purchase date the book value of goodwill is allocated to the asset group or asset group portfolio that
can benefit from the synergistic effect of business merger in a reasonable way. If the recoverable amount of the
asset group or asset group portfolio containing the allocated goodwill is lower than its book value the
corresponding impairment loss will be recognized. The amount of impairment loss will firstly deduct the book
value of goodwill allocated to the asset group or asset group portfolio and then deduct the book value of other
assets according to the proportion of the book value of assets other than goodwill in the asset group or asset
group portfolio.Once the above-mentioned asset impairment losses are recognized they will not be reversed in future
accounting periods.
32. Long-term deferred expenses
Long-term deferred expenses refer to the expenses that have occurred but should be borne by the current
period and subsequent periods with an amortization period of more than one year. Long-term deferred expenses
shall be amortized evenly by stages during the expected benefit period.
95Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
33. Contractual liabilities
Contractual liabilities refer to the obligation of the Group to transfer goods or services to customers for
consideration received or receivable from customers. Contract assets and liabilities under the same contract are
listed on a net basis.
34. Employee Remuneration
（1） Accounting treatment method of short-term Remuneration
During the accounting period when employees provide services for the Group the Group recognizes the
actual short-term remuneration as a liability and records it into the current profits and losses or related asset
costs. The employee welfare expenses incurred by the Group are included in the current profits and losses or
related asset costs according to the actual amount when actually incurred. If employee welfare expenses are
non-monetary benefits they shall be measured at fair value.The social insurance premiums such as medical insurance premium work injury insurance premium and
maternity insurance premium and housing provident fund paid by the Group for employees as well as the trade
union funds and employee education funds withdrawn by the Group according to regulations shall be
calculated according to the stipulated accrual basis and accrual ratio during the accounting period when
employees provide services for the Group to determine the employee compensation amount and recognize the
corresponding liabilities and be included in the current profits and losses or related asset costs.
（2）Accounting treatment of post-employment benefits
Post-employment benefits are all defined contribution plans.During the accounting period when employees provide services for the Group the amount payable
calculated according to the set deposit plan is recognized as a liability and included in the current profits and
losses or related asset costs.
（3） Accounting treatment of dismissal benefits
If the Group provides dismissal benefits to employees the employee compensation liabilities arising from
the dismissal benefits shall be recognized at the earlier of the following two dates and included in the current
profits and losses: when the Group cannot unilaterally withdraw the dismissal benefits provided by the plan to
terminate labor relations or the proposal to cut back; When the Group recognizes the costs or expenses related
to the reorganization involving the payment of dismissal benefits.
（4）Accounting Treatment Method of Other Long-term Employee Benefits
None
35.Lease liabilities
Please refer to the "42. Lease (1) The Company as a lessee 1) Lease liability" of "V. Significant
Accounting Policies and Accounting Estimates" of "Section 10 Financial Reporting" of this report
96Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
36. Estimated Liabilities
When the obligation related to contingencies such as customer return are the current obligations
undertaken by the Group and the fulfillment of this obligation is likely to lead to the outflow of economic
benefits and the amount of this obligation can be measured reliably it is recognized as estimated liabilities.On the balance sheet date considering the risk uncertainty and time value of money related to
contingencies the estimated liabilities are measured according to the best estimate of the expenditure required
to fulfill the relevant current obligations. If the time value of money is significant the best estimate is
determined by the discounted amount of expected future cash outflow.
37. Share-based payment
Share-based payment of the Group is a transaction that grants equity instruments or assumes liabilities
determined on the basis of equity instruments in order to obtain services provided by employees. Share-based
payment of the Group is equity-settled share-based payment.
（1）Equity-settled share-based payment
Equity-settled share-based payment granted to employees
Equity-settled share-based payment in exchange for services provided by employees is measured by the
fair value of the equity instruments granted to employees on the grant date in the Group. During the waiting
period the amount of the fair value is based on the best estimate of the number of exercisable equity
instruments calculated by the straight-line method and included in the relevant costs or expenses and the
capital reserve is increased accordingly.On each balance sheet date during the waiting period the Group makes the best estimate based on the
latest subsequent information such as changes in the number of employees with vesting rights and corrects the
number of equity instruments with estimated vesting rights. The impact of the above estimate is included in the
relevant costs or expenses of the current period and the capital reserve is adjusted accordingly.（ 2）Accounting treatment related to implementation modification and termination of share-based
payment plan
When the Group modifies the share-based payment plan if the modification increases the fair value of the
equity instruments granted the increase in services obtained will be recognized accordingly; If the modification
increases the number of equity instruments granted the fair value of the increased equity instruments will be
recognized as an increase in service acquisition accordingly. The increase in the fair value of equity
instruments refers to the difference between the fair value of equity instruments before and after modification
on the modification date. If the total fair value of share-based payment is reduced or the terms and conditions
of the share-based payment plan are modified in other ways that are unfavorable to employees the accounting
treatment for the services obtained will continue as if the change had never occurred unless the Group cancels
part or all of the equity instruments granted.During the waiting period if the granted equity instruments are cancelled the Group will accelerate the
cancellation of the granted equity instruments and immediately include the amount to be recognized in the
remaining waiting period in the current profits and losses and at the same time recognize the capital reserve. If
employees or other parties can choose to meet the conditions of unfeasible rights but fail to meet them within
the waiting period the Group will cancel them as the instrument for granting equity.
97Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
38. Other financial instruments such as preferred stocks and perpetual bonds
None
39. Revenue
Accounting policies adopted in income recognition and measurement
The Group's income mainly comes from the following business:
(1) Polarizer sales;
(2) Textile sales;
(3) Property leasing and management;
(4) Other business.
The Group has fulfilled its contractual obligation that is when the customer obtains the control right of the
relevant goods or services the income will be recognized according to the transaction price allocated to the
performance obligation. Performance obligation refers to the commitment of the Group to transfer clearly
distinguishable goods or services to customers in the contract. Transaction price refers to the amount of
consideration that the Group is expected to receive due to the transfer of goods or services to customers which
however does not include the money received on behalf of third parties and the money that the Group expects
to return to customers.The Group evaluates the contract on the start date of the contract identifies the individual performance
obligations contained in the contract and determines whether each individual performance obligation is
performed within a certain period of time or at a certain point of time. If one of the following conditions is met
it belongs to the performance obligation within a certain period of time and the Group recognizes the income
within a certain period of time according to the performance progress: (1) The customer obtains and consumes
the economic benefits brought by the performance of the Group; (2) The customer can control the goods under
construction during the performance of the Group; (3) The goods produced by the Group during the
performance of the contract have irreplaceable purposes and the Group has the right to collect money for the
accumulated performance part completed so far during the whole contract period. Otherwise the Group
recognizes income at the point when the customer obtains control over the relevant goods or services.If the contract contains two or more performance obligations the Group will allocate the transaction price
to each individual performance obligation on the contract start date according to the relative proportion of the
separate selling price of the goods or services promised by each individual performance obligation. However if
there is conclusive evidence that the contract discount or variable consideration is only related to one or more
(but not all) performance obligations in the contract the Group will allocate the contract discount or variable
consideration to one or more related performance obligations. Separate selling price refers to the price at which
the Group sells goods or services to customers separately. If the separate selling price cannot be directly
observed the Group comprehensively considers all relevant information that can be reasonably obtained and
estimates the separate selling price by using observable input values to the maximum extent.For sales with return clauses when the customer obtains the control right of the relevant goods the Group
recognizes the income according to the amount of consideration expected to be charged due to the transfer of
goods to the customer (that is excluding the amount expected to be refunded due to sales return) and
recognizes the liabilities according to the amount expected to be refunded due to sales return; At the same time
according to the book value of the expected returned goods at the time of transfer the balance after deducting
98Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
the expected cost of recovering the goods (including the loss of the value of the returned goods) is recognized as
an asset and the net carry-over cost of the above assets is deducted according to the book value of the
transferred goods at the time of transfer.For sales with quality assurance clauses if the quality assurance provides a separate service in addition to
assuring customers that the goods or services sold meet the established standards the quality assurance
constitutes a single performance obligation. Otherwise the Group shall handle the quality assurance
responsibility in accordance with the Accounting Standards for Business Enterprises No.13-Contingencies.According to whether the Group has control over the goods or services before transferring them to
customers the Group judges whether it is the main responsible person or the agent when engaging in
transactions. If the Group can control the goods or services before transferring them to customers the Group is
the main responsible person and the income is recognized according to the total consideration received or
receivable; Otherwise the Group as an agent recognizes income according to the expected amount of
commission or handling fee which is determined according to the net amount of the total consideration
received or receivable after deducting the price payable to other interested parties.If the Group receives the payment for the sale of goods or services from customers in advance it will first
recognize the payment as a liability and then change it to income when the relevant performance obligations
are fulfilled. When the advance payment of the Group does not need to be returned and the customer may give
up all or part of its contractual rights if the Group is expected to be entitled to the amount related to the
contractual rights given up by the customer the above amount will be recognized as income in proportion
according to the mode of the customer's exercise of contractual rights; Otherwise the Group will only convert
the relevant balance of the above liabilities into income when it is extremely unlikely that the customer will
demand to perform the remaining performance obligations.Please refer to Note (X) 5 "The Group as a lessor records the operating leasing business" for the
accounting policy of the Group's income recognition in property leasing.
40. Government subsidies
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Group from
the government free of charge. Government subsidies are recognized when they can meet the conditions
attached to government subsidies and can be received.If government subsidies are monetary assets they shall be measured according to the amount received or
receivable.
（1）Judgment basis and accounting treatment method of government subsidies related to assets
As long-term assets can be formed in the production line subsidies and equipment subsidies of the Group's
government subsidies these government subsidies are government subsidies related to assets.Government subsidies related to assets are recognized as deferred income and are included in the current
profits and losses in installments according to the straight-line method within the service life of the related
assets.
（2）Judgment basis and accounting treatment method of government subsidies related to income
As the Group's government subsidies such as industry development support funds enterprise development
support funds and tax subsidies cannot form long-term assets these government subsidies are government
subsidies related to income.
99Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Government subsidies related to income if used to compensate related costs and losses in future periods
will be recognized as deferred income and are included in the current profits and losses during the period when
related costs or expenses are recognized; if used to compensate the related costs and losses that have occurred
will be directly included in the current profits and losses.Government subsidies related to the daily activities of the Group are included in other income according to
the nature of economic business. Government subsidies unrelated to the daily activities of the Group are
included in non-operating income.When the confirmed government subsidy needs to be returned if there is a relevant deferred revenue
balance the relevant deferred income book balance will be offset and the excess will be included in the current
profits and losses; If there is no relevant deferred income it will be directly included in the current profits and
losses.
41. Deferred income tax assets/Deferred income tax liabilities
Income tax expenses include current income tax and deferred income tax.
（1）Current income tax
On the balance sheet date the current income tax liabilities (or assets) formed in the current and previous
periods shall be measured by the expected income tax payable (or refunded) calculated in accordance with the
provisions of the tax law.
（2）Deferred income tax assets and deferred income tax liabilities
For the difference between the book values of some assets and liabilities and their tax basis and the
temporary difference between the book values of items that are not recognized as assets and liabilities but can
be determined in tax basis according to the provisions of the tax law and tax basis the balance sheet liability
method is adopted to recognize deferred income tax assets and deferred income tax liabilities.In general all temporary differences are recognized as related deferred income tax. However for
deductible temporary differences the Group recognizes related deferred income tax assets to the extent that it is
likely to obtain taxable income to offset the deductible temporary differences. In addition for the temporary
differences related to the initial recognition of goodwill and the initial recognition of assets or liabilities arising
from transactions that are neither business merger nor affect accounting profits and taxable income (or
deductible losses) the relevant deferred income tax assets or liabilities are not recognized.For deductible losses and tax deductions that can be carried forward to future years the corresponding
deferred income tax assets are recognized to the extent that it is likely to obtain future taxable income for
deducting deductible losses and tax deductions.The Group recognizes deferred income tax liabilities arising from taxable temporary differences related to
investments in subsidiaries associated enterprises and joint ventures unless the Group can control the time
when the temporary differences are reversed and the temporary differences are unlikely to be reversed in the
foreseeable future. For deductible temporary differences related to the investments of subsidiaries associated
enterprises and joint ventures the Group recognizes the deferred income tax assets only when the temporary
differences are likely to be reversed in the foreseeable future and the taxable income used to offset the
deductible temporary differences is likely to be obtained in the future.
100Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
On the balance sheet date deferred income tax assets and deferred income tax liabilities shall be measured
according to the applicable tax rate during the expected recovery of related assets or settlement of related
liabilities.Except that the current income tax and deferred income tax related to transactions and events directly
included in other comprehensive income or shareholders' equity are included in other comprehensive income or
shareholders' equity and the deferred income tax arising from business merger adjusts the book value of
goodwill the remaining current income tax and deferred income tax expenses or gains are included in the
current profits and losses.On the balance sheet date the book value of deferred income tax assets shall be rechecked. If it is probable
that sufficient taxable income will not be obtained in the future to offset the benefits of deferred income tax
assets the book value of deferred income tax assets shall be written down. When sufficient taxable income is
likely to be obtained the amount written down will be reversed.
（3）Offset of income tax
When the Group has the legal right to settle on a net basis and intends to settle on a net basis or acquire
assets and pay off liabilities at the same time the Group's current income tax assets and current income tax
liabilities are presented on an offset net basis.When the taxpayer has the legal right to settle the current income tax assets and liabilities on a net basis
and the deferred income tax assets and liabilities are related to the income tax levied by the same tax collection
department on the same taxpayer or to different taxpayers but in the future the taxpayers involved intend to
settle the current income tax assets and liabilities on a net basis or acquire assets and pay off liabilities at the
same time the Group's deferred income tax assets and liabilities are presented on an offset net basis.
42. Lease
Lease refers to a contract in which the lessor transfers the right to use assets to the lessee for consideration
within a certain period of time.On the commencement date of the contract the Group evaluates whether the contract is a lease or contains
a lease. Unless the terms and conditions of the contract change the Group will not re-evaluate whether the
contract is a lease or contains a lease.
（1）The Group as the lessee
1）Split of lease
If the contract contains one or more leased and non-leased parts at the same time the Group will split each
separate leased and non-leased part and allocate the contract consideration according to the relative proportion
of the sum of the separate prices of each leased part and the non-leased part.
2）Right-to-use assets
Except for short-term leases the Group recognizes the right-to-use assets on the start date of lease term. The
start date of lease term refers to the start date when the lessor provides the leased assets for the use of the Group.The right-to-use assets is initially measured according to the cost. The cost includes:
Initial measurement amount of lease liabilities;
101Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
For the lease payment paid on or before the start date of the lease term if there are lease incentives deduct the
amount related to the lease incentives enjoyed;
· Initial direct expenses incurred by the Group;
· The estimated costs incurred by the Group for dismantling and removing the leased assets restoring the
premises where the leased assets are located or restoring the leased assets to the state agreed in the lease clauses.The Group refers to the depreciation provisions in Accounting Standards for Business Enterprises No.4-Fixed
Assets and accrues depreciation for right-to-use assets. If the Group can reasonably determine that it has
acquired the ownership of the leased assets at the expiration of the lease term the right-to-use assets will be
depreciated within the remaining service life of the leased assets. If it cannot be reasonably determined that the
ownership of the leased assets can be obtained at the expiration of the lease term depreciation shall be accrued
during the lease term or the remaining service life of the leased assets whichever is shorter.According to the Accounting Standards for Business Enterprises No.8-Impairment of Assets the Group
determines whether the right-to-use assets have been impaired and carries out accounting treatment for the
identified impairment losses.
3）Lease liabilities
Except for short-term leases the Group initially measures the lease liabilities on the start date of lease term
according to the present value of the unpaid lease payment on that date. When calculating the present value of
the lease payment the Group uses the lease interest rate as the discount rate. If the lease interest rate cannot be
determined the incremental loan interest rate is used as the discount rate.Lease payment refers to the amount paid by the Group to the lessor related to the right to use the leased assets
during the lease term including:
· Fixed payment amount and substantial fixed payment amount. If there is lease incentive the relevant amount
of lease incentive shall be deducted;
· Variable lease payment amount depending on index or ratio;
· The exercise price of the option reasonably determined by the Group to be exercised;
· The amount to be paid to terminate the lease when the lease term reflects that the Group will exercise the
option;
· The amount expected to be paid according to the residual value of the guarantee provided by the Group.After the start of the lease term the Group calculates the interest expense of the lease liabilities in each period
of the lease term at a fixed periodic interest rate and includes it in the current profits and losses or related asset
costs.After the commencement of the lease term if the following circumstances occur the Group will re-measure the
lease liabilities and adjust the corresponding right-to-use assets. If the book value of the right-to-use assets has
been reduced to zero but the lease liabilities still need to be further reduced the Group will include the
difference in the current profits and losses:
· If the lease term changes or the evaluation result of the purchase option changes the Group will re-measure
the lease liabilities according to the present value calculated by the changed lease payment amount and the
revised discount rate;
· If the estimated payable amount according to the guarantee residual value or the index or proportion used to
102Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
determine the lease payment changes the Group will re-measure the lease liabilities according to the present
value calculated by the changed lease payment amount and the original discount rate.
4）Short-term lease
For the short-term lease of some factories and some rented warehouses the Group chooses not to recognize the
right-to-use assets and lease liabilities. Short-term lease refers to the lease that does not exceed 12 months and
does not include the option to purchase on the start date of the lease term. The Group will charge the lease
payment for short-term lease to the current profits and losses or related asset costs in accordance with the
straight-line method in each period of the lease term.
5）Lease change
If the lease changes and the following conditions are met at the same time the Group will carry out accounting
treatment on the lease change as a separate lease:
· The lease change expands the lease scope by increasing the right to use one or more leased assets;
· The increased consideration is equivalent to the individual price of the expanded part of the lease scope
adjusted according to the contract situation.If the lease change is not accounted for as a separate lease on the effective date of the lease change the Group
will re-allocate the consideration of the changed contract re-determine the lease term and re-measure the lease
liabilities according to the present value calculated by the changed lease payment and the revised discount rate.If the lease scope is reduced or the lease term is shortened due to lease change the Group shall correspondingly
reduce the book value of the right-to-use assets and include the related gains or losses of partial or full
termination of lease in the current profits and losses. If other lease changes lead to the re-measurement of lease
liabilities the Group will adjust the book value of the right-to-use assets accordingly.
6）Policy-related rent concession
For the rent concessions reached between the Group and the lessor on the existing lease contract such as rent
reduction deferred payment etc. and the following conditions are met at the same time the Group chooses to
adopt the simplified method in the accounting treatment provisions of relevant policy rent reduction:
(1) The lease consideration after concession is reduced or basically unchanged compared with that before
concession;
(2) After comprehensive consideration of qualitative and quantitative factors it is determined that other clauses
and conditions of the lease have not changed significantly.The Group continues to calculate the interest expense of lease liabilities at the same discount rate as before
concession and includes it in the current profits and losses and continues to carry out subsequent measurement
such as depreciation of right-to-use assets according to the same method as before concession. In case of rent
reduction the Group regards the reduced rent as a variable lease payment amount and when the original rent
payment obligation is terminated by reaching a concession agreement the relevant asset costs or expenses are
offset by the discounted amount at the discount rate before discounting or concession and the lease liabilities
are adjusted accordingly; If the rent payment is delayed the Group will offset the lease liabilities recognized in
the previous period when actually paying.For short-term leases with simplified treatment the Group continues to include the original contract rent in the
relevant asset cost or expense in the same way as before concession. In case of rent reduction the Group
103Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
regards the reduced rent as a variable lease payment and offsets the cost or expense of related assets during the
reduction period; If the payment of rent is delayed the Group will recognize the rent payable as payable in the
original payment period and offset the payable recognized in the previous period when actually paying.
（2）The Group as the lessor
1）Split of lease
If the contract contains both leased and non-leased parts the Group will allocate the contract consideration
according to the provisions of the Accounting Standards for Business Enterprises No.14-Revenues on
transaction price allocation and the basis of allocation is the separate prices of the leased part and the non-
leased part.
2）Classification of lease
A lease that essentially transfers almost all the risks and rewards related to the ownership of the leased assets is
a financial lease. Other leases except financing lease are operating leases.* The Group as a lessor records the operating lease business
During each period of the lease term the Group adopts the straight-line method to recognize the lease receipts
from operating lease as rental income. The initial direct expenses incurred by the Group in connection with
operating leases are capitalized when incurred apportioned on the same basis as rental income recognition
during the lease term and included in current profits and losses in installments.The variable lease receipts related to operating leases obtained by the Group which are not included in the lease
receipts are included in the current profits and losses when actually incurred.
（3）Lease change
If the operating lease is changed the Group will carry out accounting treatment on it as a new lease from
the effective date of the change and the lease receipts received in advance or receivable related to the lease
before the change will be regarded as the receipts of the new lease.
（4）Policy-related rent concession
For the rent concessions reached between the lessor and the lessor on the existing lease contract such as
rent reduction deferred payment etc. and the following conditions are met at the same time the Group chooses
to adopt the simplified method in the accounting treatment provisions of relevant policy rent reduction:
(1) The lease consideration after concession is reduced or basically unchanged compared with that before
concession;
(2) After comprehensive consideration of qualitative and quantitative factors it is determined that other
clauses and conditions of the lease have not changed significantly.For the operating lease of the Group's own property lease contract the Group continues to recognize the
original contract rent as lease income in the same way as before concession. In case of rent reduction the
Group regards the reduced rent as a variable lease payment and reduces the lease income during the reduction
period; If the rent collection is delayed the Group will recognize the rent that should be collected as receivables
in the original collection period and offset the receivables recognized in the previous period when it is actually
received.
104Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
43. Other important accounting policies and accounting estimates
None
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
□ Applicable √ Applicable
（2） Changes in accounting estimates
□ Applicable √ Applicable
（3）The information of the adjusting items related to the financial statements at the beginning of the
year of first implementation due to the first implementation of new accounting standards from 2023.□ Applicable √ Applicable
45.Other
None
VI. Taxation
1. Main categories and rates of taxes
Tax category Tax basis Tax rate
The balance after deducting the deductible The output tax for domestic sales is calculated according
input tax from the output tax; The tax to 13% 9% 6% and 5% of the sales amount calculated
VAT
calculation method of "exemption offset and according to relevant tax regulations and the tax rebate
refund" is applied to sales of export products rate for export products is 13%
Urban
maintenance and Payable turnover tax 7%
construction tax
Business income
Taxable amount of income 25%20%15%8.25%
tax
Surcharge for
Payable turnover tax 3%
education
Surcharge for
Payable turnover tax 2%
local education
Residual value or rental income after deducting
Property tax 30% from the original value of property at one 1.2% or12%
time
The disclosure statement if there are taxpayers with different enterprise income tax rates
Name of taxpayer Income tax rate
The Company 25%
Shenzhen Shenfang Property Management Co. Ltd. 25%
Shenzhen Shengjinlian Technology Co. Ltd. 25%
Shenzhen Beauty Century Garment Co. Ltd. 20%(Note 1)
Shenzhen Lisi Industrial Co. Ltd. 20%(Note 1)
Shenzhen Shenfang Sungang Property Management Co. Ltd. 20%(Note 1)
Shenzhen Huaqiang Hotel 20%(Note 1)
Shengtou（HK）Co. Ltd. 8.25%(Note 2)
105Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Shenzhen SAPO Photoelectric Co. Ltd. 15%(Note 3)
Note 1: See "Tax Preferences" in Notes 2 (2) for details.Note 2: According to the Tax Ordinance of Hong Kong Hong Kong companies applied the two-tier
system of profits tax and the first profit of HK$ 2 million will be calculated and paid at 8.25% and the profits
generated thereafter will be calculated at 16.5%.Note 3: See "Tax Preference" in Notes 2(1) for details.
2. Tax preference
(1) In 2022 SAPO Photoelectric a subsidiary of the Company was jointly recognized as a high-tech
enterprise by Shenzhen Science and Technology Innovation Committee Shenzhen Finance Bureau and
Shenzhen Tax Service State Taxation Administration respectively with a certification period of 3 years and
the certificate numbers of GR202244204504 respectively. It shall apply the preferential tax policies for high-
tech enterprises within three years after it is recognized as a high-tech enterprise and pay enterprise income tax
at the rate of 15% after being filed by the competent tax bureau.（ 2） The subsidiaries of the Company Beauty Century Company Shenzhen Huaqiang Hotel Co. Ltd
Shenzhen Lisi Industrial Development Co. Ltd Shenzhen Shenfang Sungang Property Management Co. Ltd
and Shenzhen Shenfang Property Management Co. Ltd are eligible small and micro-profit enterprises.According to the Notice on the Implementation of the Inclusive Tax Exemption and Reduction Policy for Small
and Micro Enterprises (No. 13[2019]Cai Shui ) and the Announcement on Further Implementing the
Preferential Income Tax Policy for Small and Micro Enterprises ( According to the No. 13 2022Announcement
of the State Administration of Taxation of the Ministry of Finance) the Announcement of the State
Administration of Taxation of the Ministry of Finance on the Preferential Income Tax Policies for Small and
Micro Enterprises and Individual Industrial and Commercial Enterprises (The No. 6 2023Announcement of the
State Administration of Taxation of the Ministry of Finance) and the Announcement of the State Administration
of Taxation on the Implementation of the Preferential Income Tax Policies for Small and Micro-Profit
Enterprises (The No. 6 [2023]Announcement of State Administration of Taxation) the portion of taxable
income not exceeding RMB 1 million in the current year shall be reduced to 25% as taxable income and subject
to enterprise income tax at a rate of 20%.; For the portion of taxable income exceeding RMB 1 million but not
exceeding RMB 3 million in the current year it shall be reduced to 50% as taxable income and subject to
enterprise income tax at a rate of 20%.
（3）According to the relevant provisions of the Notice of the General Administration of Customs and the
State Administration of Taxation of the Ministry of Financeon the Import Tax Policies for Supporting the
Development of the New Display Device Industry (No. 19[2021]Cai Shui) SAPO Photoelectric a subsidiary
of the Company meets the relevant conditions and enjoys the policy of exemption from import tariffs for
related products from January 1 2021 to December 31 2030.
（4）The subsidiaries of the Company Shenzhen Beauty Century Company Shenzhen Huaqiang Hotel Co.
Ltd Shenzhen Lisi Industrial Development Co. Ltd Shenzhen Shenfang Sungang Property Management Co.Ltd and Shenzhen Shenfang Property Management Co. Ltd are eligible small and micro-profit enterprises. In
accordance with the relevant provisions of the Announcement of the State Administration of Taxation of the
Ministry of Finance on Further Implementing the "Six Taxes and Two Fees" Exemption and Reduction Policy
for Small and Micro Enterprises (Announcement No. 10 of 2022 of the State Administration of Taxation of the
Ministry of Finance) From January 1 2022 to December 31 2024 the small-scale value-added tax taxpayers
small and micro-profit enterprises and individual industrial and commercial enterprises can reduce resource tax
106Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
urban maintenance and construction tax real estate tax urban land use tax stamp duty (excluding stamp duty
on securities transactions) cultivated land occupation tax and education fee surcharge and local education
surcharge within the tax range of 50%.
（5）According to the Notice of the Ministry of Finance State Administration of Taxation Ministry of
Human Resources and Social Security and Poverty Alleviation Office of the State Council on Tax Policies to
Further Support and Promote the Entrepreneurship and Employment of Key Groups ( No. 22[2019]Cai Shui )
from the month of signing the labor contract and paying social insurance the value-added tax urban
maintenance and construction tax education fee surcharge local education surcharge and enterprise income tax
preferential will be deducted according to the actual number of recruits within 3 years in fixed amount and the
fixed amount standard is 7800 yuan per person per year. The tax calculation basis for urban maintenance and
construction tax education fee surcharge and local education surcharge is the VAT payable before enjoying this
preferential tax policy. SAPO Photoelectric a subsidiary of the Company applies the above preferential tax
policies.
3.Other
None
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
In RMB
Items Closing balance Opening balance
Cash at hand 2231.43 3980.56
Bank deposit 345697680.49 874795302.32
Other monetary funds 270542231.07 116990685.31
Total 616242142.99 991789968.19
Including : The total amount of deposit abroad 0.00 0.00
Total amount of money limited to use such as mortgage pledge
270542231.07116990685.31
or freeze
Other note
Bank deposits include interest on current deposits of RMB 16175.93 Other monetary funds include the
interest of time deposit of RMB 226666.67 .Note 2: On June 30 2023 the Company's other monetary funds included the Bank Draft of
RMB4595637.31 RMB 1209498.75 and the principal and interest of time deposit certificates due for more
than three months from the date of purchase of RMB 265946593.76.
2. Transactional financial assets
In RMB
Items Balance at the end of this Balance at the end of lastyear year
Financial assets measured at fair value and whose changes
613554063.16319605448.44
are included in the current profits and losses
Including
money funds and structured deposits 613554063.16 319605448.44
Including
107Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Total 613554063.16 319605448.44
3. Derivative financial assets
None
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items Balance at the end of this year Balance at the end of last year
Bank acceptance 56718590.38 74619100.26
Total 56718590.38 74619100.26
In RMB
Balance at the end of this year Balance at the end of last year
Book Balance Bad debtprovision Book Balance
Bad debt
provision
Category Amount Propor Am Prop Book value Amount Propor Am Prop Book value
tion(% ount ortio tion(% ount ortio
) n(% ) n(%
))
Of which：
Accrual of bad
debt provision 56718590.38 100.00% 0.00 0.00% 56718590.38 74619100.26 100.00% 0.00 0.00% 74619100.26
by portfolio
Including：
.Bank
56718590.38100.00%0.000.00%56718590.3874619100.26100.00%0.000.00%74619100.26
acceptance Bill
Total 56718590.38 100.00% 0.00 0.00% 56718590.38 74619100.26 100.00% 0.00 0.00% 74619100.26
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：None
Of which the significant amount of the reversed or collected part during the reporting period
□ Applicable √ Not applicable
（3） Notes receivable pledged by the company at the end of the period
None
（4）Accounts receivable financing endorsed or discounted by the Company at the end of the period and
not expired yet on the date of balance sheet
In RMB
Items Amount derecognized at the end of the Amount not yet derecognized at the endperiod of the period
Bank acceptance bill 0.00 40032610.22
Commercial acceptance 0.00 0.00
108Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Total 0.00 40032610.22
（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contract
or agreement
None
（6） The actual write-off accounts receivable
None
5. Account receivable
(1)Classification account receivables.
In RMB
Amount in year-end Amount in year-begin
Categor Book balance Bad debt provision Book balance Bad debt provision
y Propor Book Propor BookAmount tion(% Amount Proportion(%) value Amount tion(% Amount
Proporti value
) ) on(%)
Accrual
of bad
debt
provisio 75859176. 3041235 4544682 74770706.0 2845716 46313548.32% 40.09% 10.93% 38.06%
n by 03 5.96 0.07 0 3.32 2.68
single
item
Accrual
of bad
debt 835796147 2633523 8094609 609507464. 1923753 5902699
91.68%3.15%89.07%3.16%
provisio .09 8.20 08.89 34 7.09 27.25
n by
portfolio
Includ
ing：
Portfolio 8074725 88.57 247982 782674 5911686 86.39 182956 572872
3.07%3.10%
129.45%45.92283.5303.26%05.12998.14
Portfolio 2832361 153699 267866 1833886 941931. 173969
3.11%5.43%2.68%5.14%
27.642.2825.361.089729.11
9116553100.005674758549076842781100.00476947636583
Total 6.22% 6.97%
23.12%94.16728.9670.34%00.41469.93
Accrual of bad debt provision by single item:
In RMB
Closing balance
Name Bad debt
Book balance Proportion Reason
provision
Client 1 20940304.25 4900031.19 23.40% Expected high risk of recovery
Client 2 19608301.25 4588342.49 23.40% Expected high risk of recovery
Client 3 8944810.20 2344434.75 26.21% Expected high risk of recovery
Client 4 2797016.81 2797016.81 100.00% Expected to be uncollectible
Client 5 2701052.56 810315.77 30.00% Expected high risk of recovery
Client 6 1697437.81 1697437.81 100.00% Expected to be uncollectible
109Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Client 7 1609101.31 482730.39 30.00% Expected high risk of recovery
Client 8 1576585.72 1576585.72 100.00% Expected to be uncollectible
Client 9 1298965.36 1298965.36 100.00% Expected to be uncollectible
Subtotal 14685600.76 9916495.67 67.53%
Total 75859176.03 30412355.96
Accrual of bad debt provision by portfolio:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Portfolio 1 807472529.45 24798245.92 3.07%
Portfolio 2 28323617.64 1536992.28 5.43%
Total 835796147.09 26335238.20
Note：
Credit loss provision by item: if there is evidence that the credit risk of a single receivable is relatively high
credit loss provision shall be accrued separately for the receivable.Credit loss provision is made according to the portfolio of credit risk characteristics: except for receivables
with credit impairment loss the Group uses impairment matrix to evaluate the expected credit loss of accounts
receivable formed by operating income on the basis of portfolio. According to the risk characteristics the Group
divides customers into Portfolio 1 and Portfolio 2 which respectively involve customers with the same risk
characteristics.Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 897992300.67
1-2 years 779798.03
2-3 years 0.00
Over 3 years 12883224.42
3-4 years 454035.81
Over 5 years 12429188.61
Total 911655323.12
(2) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or
Accrual collected Write- Other Closing balance
amount off
Accrual of bad debt provision by
portfolio: 19237537.09 7107304.24 9603.13
0.000.0026335238.20
Accrual of bad debt provision by 0.00 0.00
single item: 28457163.32 1955192.64 0.00 30412355.96
Total 47694700.41 9062496.88 9603.13 0.00 0.00 56747594.16
Of which the significant amount of the reversed or collected part during the reporting period :None
110Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Name Balance in year-end Proportion(%) Bad debt provision
Client 1 168740368.13 18.51% 5214077.39
Client 2 92294917.91 10.12% 2851912.96
Client 3 85996566.25 9.43% 2657293.90
Client 4 80398103.20 8.82% 2484301.39
Client 5 69843457.35 7.66% 2158162.83
Total 497273412.84 54.54%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
None
6.Receivable financing
In RMB
Items Closing balance Opening balance
Bank acceptance bill 22863088.36 54413796.91
Total 22863088.36 54413796.91
Changes in current period and fair value of receivables financing
□ Applicable √ Not applicable
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Other note
On June 30 2023 the endorsed or discounted unexpired bank acceptance bills that the Group derecognized
amounted to RMB 54533024.39. For the bank acceptance bills of large state-owned commercial banks with
high credit rating and listed national joint-stock commercial banks the Group believes that after the
endorsement or discount of such bank acceptance bills the related main risks and rewards have been transferred
to the counterparty and such endorsed or discounted unexpired bank acceptance bills should be derecognized.The Company believes that the acceptance bank credit rating of the bank acceptance bills held by it is high
with no significant credit risk therefore no credit loss provision has been made.
7.Prepayments
(1) List by aging analysis:
In RMB
Aging Balance at the end of this year Balance at the end of last year
111Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Amount Proportion % Amount Proportion %
Within 1 year 24263130.32 81.81% 16690766.68 90.75%
1-2 years 5395750.80 18.19% 1700677.99 9.25%
Total 29658881.12 18391444.67
Note：
On June 30 2023 the Group had no prepayments with an age of more than one year and a significant amount.
(2) Prepayments of the top five ending balances by prepayment object
The total amount of the top five year-end balances collected by prepayment objects is RMB 21692691.03
accounting for 73.14% of the total year-end balances of prepayments.
8. Other receivables
In RMB
Items Balance at the end of this year Balance at the end of last year
Other receivable 3393141.86 10585975.38
Total 3393141.86 10585975.38
（1） Interest receivable
1）Classification interest receivables.
None
2) Significant overdue interest
None
3）Bad-debt provision
□Applicable □Not applicable
Loss provision changes in current period change in book balance with significant amount
□ Applicable √Not applicable
(2)Dividend receivable
1) Dividend receivable
None
2) Significant dividend receivable aged over 1 year
None
3）Bad-debt provision
□ Applicable √ Not applicable
112Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Unit account 16811262.94 16330801.03
Deposit 2186800.03 2801300.29
Reserve fund and staff loans 889740.57 580028.97
Export rebate 709028.56 1023715.60
Other 463070.29 1688371.65
Freeze funds 347284.99 6559327.26
Total 21407187.38 28983544.80
2）) Accrual of credit loss provision
In RMB
Stage 1 Stage 2 Stage 3
Bad Debt Reserves Expected credit Expected credit loss over Expected credit losses for Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January 1
2023494588.28198890.0917704091.0518397569.42
Balance as at January 1
2023in current
Provision in Current Year 38815.94 14108.85 11798.65 64723.44
Reversal in Current Year -448247.34 -448247.34
Balance as at 30 June
85156.88212998.9417715889.7018014045.52
2023
Loss provision changes in current period change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balanceWithin 1 year(Including 1 year） 2038042.86
1-2 years 808278.98
2-3 years 362049.11
Over 3 years 18198816.43
3-4 years 4200.00
4-5 years 124799.10
Over 5 years 18069817.33
Total 21407187.38
3) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or
Accrual collected Write- Other Closing balance
amount off
Accrual of bad debt
provision by single item 17188131.90 17188131.90
113Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Accrual of bad debt
provision by portfolio 1209437.52 64723.44 -448247.34 825913.62
Total 18397569.42 64723.44 -448247.34 18014045.52
Where the current bad debts back or recover significant amounts:None
4） Other account receivables actually cancel after write-off
None
5）Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Bad debt provision
Name Nature Year-end balance Age Portion in total otherreceivables(%) of year-endbalance
Client 1 Unit account 980461.06 Over 5 years 4.58% 980461.06
Client 2 Unit account 709028.48 Over 5 years 3.31% 709028.48
Client 3 Unit account 509611.25 Over 5 years 2.38% 272642.02
Client 4 Unit account 500000.00 1-2 years 2.34% 53500.00
Client 5 Unit account 294983.04 2-3 years 1.38% 90744.16
Total 2994083.83 13.99% 2106375.72
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial
assets
None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
None
9. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
No
（1）Category of Inventory
In RMB
Closing book balance Opening book balance
Provision for Provision for
Items
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw
materials 371378015.36 35514179.23 335863836.13 291062812.80 48809720.50 242253092.30
Processing
products 254572639.52 43363067.47 211209572.05 258881779.59 41882202.00 216999577.59
Merchandise
196732911.5487994399.99108738511.55183723885.9692381073.6391342812.33
inventory
Commission
ed materials 7582759.79 292135.99 7290623.80 9016668.25 1164501.70 7852166.55
Total 830266326.21 167163782.68 663102543.53 742685146.60 184237497.83 558447648.77
114Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
（2）Inventory falling price reserves
In RMB
Increased in current period Decreased in current period
Reversed
Items Opening balance or Closing balanceAccrual collected Write-off Other
amount
Raw materials 48809720.50 -13295541.27 35514179.23
Processing
products 41882202.00 12852877.82 11372012.35 43363067.47
Merchandise
92381073.6336827926.4541214600.0987994399.99
inventory
Commissioned
materials 1164501.70 -872365.71 292135.99
Total 184237497.83 35512897.29 52586612.44 167163782.68
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
None
（4）Description of amortization amount of contract performance cost in the current period
None
10.Contract assets
None
11. Assets divided as held-to-sold
None
12. Non-current assets due within 1 year
None
13. Other current assets
In RMB
Items Year-end balance Year-beginning balance
Receivable return cost 32391512.15 43446472.67
Advance payment of income tax 17271913.84 26089058.57
Total 49663425.99 69535531.24
14.Creditor's right investment
None
15.Other creditor's rights investment
None
115Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
16. Long-term accounts receivable
(1) List of long-term accounts receivable
None
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial
assets
None
（3） The amount of the assets and liabilities formed by the transfer and the continues involvement of
long-term accounts receivable
None
17. Long-term equity investment
In RMB
Increase /decrease Clo
sing
Wit bala
nce
Add Cha Cash hdra
ition Other nges bonus or wal
of
Investees Opening in of Ot Closing impbalance al comprehe profits balance air
inve nsive othe announc imp he men
stme income r ed to airm r t
nt equi issue entty prov pro
ision visi
on
I. Joint ventures
Shenzhen
Guanhua
129506271.7-127314050.4
Printing &
62192221.351
Dyeing Co.Ltd.
129506271.7-127314050.4
Subtotal 0.00
62192221.351
2. Affiliated Company
Yehui
Internationa 1869767.43 -43637.75 54950.70 1881080.38
l Co. Ltd.Shenzhen
Changlianfa
Printing & 3105796.55 124599.07 3230395.62
dyeing
Company
Subtotal 4975563.98 80961.32 54950.70 5111476.00
134481835.7132425526.4
Total -2111260.03 54950.70
41
116Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
18. Other equity instruments investment
In RMB
Items Year-end balance Year-beginning balance
Financial assets designated as fair value and whose changes are included
167678283.27167678283.27
in other comprehensive income
Total 167678283.27 167678283.27
(2) Investment in non-transactional equity instruments
In RMB
Amount
transferre Reason Reasons for
Dividend d from designated as transferring
income other being measured at from other
Items recognized Cumulative Cumulative loss comprehe fair value and comprehens
this year gain/loss nsive change being ive incomeincome to included in other to retained
retained comprehensive income this
income income year
this year
Shenzhen Dailishi Planned to be held
550000.00 21627143.74 by the Group for a
Underwear Co. Ltd. long time.Union Development Co. Planned to be held
208000.00 123361939.39 by the Group for a
Ltd. long time.Jintian Industry（Group） Planned to be held14831681.50 by the Group for a
Co. Ltd. long time.Shenzhen Xinfang Knitting Planned to be held
148000.00 1851903.00 by the Group for a
Co. Ltd. long time.Shenzhen South Textile Co. Planned to be held
14559440.88 by the Group for a
Ltd. long time.
19.Other non-current financial assets
None
20. Investment real estate
(1) Investment real estate adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Items House Building Land use right Construction in process Total
I. Original price
1. Balance at period-beginning 328128815.41 328128815.41
2.Increase in the current period 185000.00 185000.00
(1) Purchase 185000.00 185000.00
（2）Inventory\Fixed
assets\ Transferred from construction in progress
117Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
(3)Increased of Enterprise Combination
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end 328313815.41 328313815.41
II.Accumulated amortization
1.Opening balance 201812980.65 201812980.65
2.Increased amount of the period 4528957.27 4528957.27
(1) Withdrawal 4528957.27 4528957.27
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end 206341937.92 206341937.92
III. Impairment provision
1. Balance at period-beginning
2.Increased amount of the period
(1) Withdrawal
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end
IV. Book value
1.Book value at period -end 121971877.49 121971877.49
2.Book value at period-beginning 126315834.76 126315834.76
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
In RMB
Items Book balance Reason
Unable to apply for warrants due to
Houses and Building 8032003.12
historical reasons
21. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 2133290574.66 2240221656.36
Total 2133290574.66 2240221656.36
(1) List of fixed assets
In RMB
118Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Items Houses & Machinerybuildings equipment Transportations Other equipment Total
I. Original price
1.Opening balance 742709971.36 2655871126.91 15875027.26 50483511.70 3464939637.23
2.Increased amount of the
period 382881.49 4714818.95 919044.25 548203.94 6564948.63
(1) Purchase 382881.49 677649.29 641168.15 548203.94 2249902.87
(2) Transferred from cons
truction in progress 4037169.66 277876.10 4315045.76
(3)Increased of Enterprise
Combination
3.Decreased amount of
the period 28887.08 337730.89 366617.97
（1）Disposal 28887.08 337730.89 366617.97
4. Balance at period-end 743092852.85 2660557058.78 16794071.51 50693984.75 3471137967.89
II. Accumulated
depreciation
1.Opening balance 173190869.37 986203419.91 5871266.55 34223428.40 1199488984.23
2.Increased amount of the
period 11982665.49 97057786.16 993475.36 3447700.18 113481627.19
(1) Withdrawal 11982665.49 97057786.16 993475.36 3447700.18 113481627.19
3.Decrease in the
reporting period 27731.59 324221.70 351953.29
（1）Disposal 27731.59 324221.70 351953.29
4.Closing balance 185173534.86 1083233474.48 6864741.91 37346906.88 1312618658.13
III. Impairment provision
1.Opening balance 25120608.21 108388.43 25228996.64
2.Increase in the reporting
period
（1）Withdrawal
3.Decrease in
the reporting period 261.54 261.54
（1）Disposal 261.54 261.54
4. Closing balance 25120608.21 108126.89 25228735.10
IV. Book value
1.Book value of the
period-end 557919317.99 1552202976.09 9929329.60 13238950.98 2133290574.66
2.Book value of the
period-begin 569519101.99 1644547098.79 10003760.71 16151694.87 2240221656.36
119Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
(2) Fixed assets temporarily idled
None
(3) Fixed assets rented by finance leases
None
(4) Fixed assets without certificate of title completed
None
（5）Liquidation of fixed assets
None
22. Construction in progress
In RMB
Items Year-end balance Year-beginning balance
Construction in progress 36543522.56 38061619.60
Total 36543522.56 38061619.60
(1) List of construction in progress
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision Book value
devaluation for
devaluation
Installation of
machines and 36543522.56 0.00 36543522.56 38061619.60 0.00 38061619.60
equipment
Total 36543522.56 0.00 36543522.56 38061619.60 0.00 38061619.60
（2）Changes of significant construction in progress
None
（3）Impairment provision of construction projects
None
（4）Engineering material
None
120Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Right to use assets
In RMB
Items House and Building Total
1. Balance at year beginning
4. Year-end balance 28914047.83 28914047.83
2. Increase at this period 5893024.28 5893024.28
Newly inversed 5893024.28 5893024.28
3.Decreased amount of the period 0.00 0.00
4. Balance at period-end 34807072.11 34807072.11
II. Accumulated depreciation
1.Opening balance 13548653.95 13548653.95
2.Increased amount of the period 4577501.46 4577501.46
(1) Withdrawal 4577501.46 4577501.46
3.Decrease in the reporting period
（1）Disposal 0.00 0.00
4.Closing balance 18126155.41 18126155.41
III. Impairment provision
1.Opening balance 0.00 0.00
2.Increase in the reporting period 0.00 0.00
（1）Withdrawal 0.00 0.00
3.Decrease in
the reporting period
（1）Disposal 0.00 0.00
4. Closing balance 0.00 0.00
IV. Book value
1.Book value of the period-end 16680916.70 16680916.70
2.Book value of the period-begin 15365393.88 15365393.88
26. Intangible assets
(1) Information
In RMB
Items Land use right Patent right Non-proprietary Software Total
121Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
technology
I. Original price
1. Balance at period-beginning 48258239.00 11825200.00 0.00 22336546.33 82419985.33
2.Increase in the current period
(1) Purchase 0.00 0.00 0.00 0.00 0.00
（2）Internal R & D 0.00 0.00 0.00 0.00 0.00
（3）Increased of Enterprise 0.00 0.00 0.00 0.00 0.00
Combination
3.Decreased amount of the period
（1）Disposal 0.00 0.00 0.00 0.00 0.00
4. Balance at period-end 48258239.00 11825200.00 0.00 22336546.33 82419985.33
II.Accumulated amortization
1. Balance at period-beginning 15274148.35 11825200.00 11128065.03 38227413.38
2. Increase in the current period 445782.66 0.00 0.00 2026293.06 2472075.72
(1) Withdrawal 445782.66 0.00 0.00 2026293.06 2472075.72
3.Decreased amount of the period
（1）Disposal 0.00 0.00 0.00 0.00 0.00
4. Balance at period-end 15719931.01 11825200.00 13154358.09 40699489.10
III. Impairment provision
1. Balance at period-beginning 0.00 0.00 0.00 0.00 0.00
2. Increase in the current period 0.00 0.00 0.00 0.00 0.00
(1) Withdrawal 0.00 0.00 0.00 0.00 0.00
3.Decreased amount of the period
（1）Disposal 0.00 0.00 0.00 0.00 0.00
4. Balance at period-end 0.00 0.00 0.00 0.00 0.00
4. Book value
1.Book value at period -end 32538307.99 0.00 0.00 9182188.24 41720496.23
2.Book value at period-beginning 32984090.65 0.00 0.00 11208481.30 44192571.95
At the end of this period the intangible assets formed through the company's internal research and development
accounted for 0.00% of the balance of intangible assets
(2) Details of fixed assets failed to accomplish certification of land use right
None
27. R&D expenses
None
28. Goodwill
(1) Original book value of goodwill
In RMB
Increase Decrease
Opening Closing balanceItems balance disposThe merger of enterprises
ition
SAPO Photoelectric 9614758.55 0.00 0.00 9614758.55
122Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
0.000.00
Shenzhen Beauty Century Garment Co.
2167341.212167341.21
Ltd.Total 11782099.76 0.00 0.00 11782099.76
（2）Impairment of goodwill
In RMB
Increase Decrease
Name of the investees or the events Closing balance
Opening balance
formed goodwill Provisio dispos
n ition
SAPO Photoelectric 9614758.55 0.00 0.00 9614758.55
0.000.00
Shenzhen Beauty Century Garment Co.
2167341.212167341.21
Ltd.Total 11782099.76 0.00 0.00 11782099.76
Information about an asset group or asset group portfolio
None
Explain the goodwill impairment test process key parameters (such as forecast period growth rate at expected
future cash flow stable period growth rate profit margin discount rate forecast period etc.) and the
confirmation method of goodwill impairment loss
None
Impact of the goodwill impairment test
None
29. Long term amortize expenses
In RMB
Amortized
Items Balance in Increase in this expensesyear-begin period Other loss
Balance in year-
end
Decoration and
facilities renovation 4470957.79 1010991.86 3459965.93
fee
Total 4470957.79 1010991.86 3459965.93
30. Deferred income tax assets/Deferred income tax liabilities
(1) Uncompensated deferred income tax assets
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Asset impairment
provision 189041740.48 28356261.07 206115717.20 30917357.58
Unrealized profit from 2190520.68 328578.10 2235077.97 335261.70
123Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
internal transactions
Deductible loss 107459166.10 16115579.51 90052078.73 13397964.96
Credit loss provision 73083485.00 12342262.52 65076915.43 11372802.27
Deferred income 103811720.34 15571758.05 116768810.33 17515321.55
Changes in fair value
of investment in other 14831681.50 3707920.38 14831681.50 3707920.38
equity instruments
Employee
compensation 7202192.55 1594722.64 9397730.55 2143607.14
payable
Total 497620506.65 78017082.27 504478011.71 79390235.58
(2)Details of the un-recognized deferred income tax liabilities
In RMB
Closing balance Opening balance
Items Deductible DeductibleDeferred income Deferred income
temporary temporary
tax liabilities tax liabilities
difference difference
Changes in fair value of investment in
other equity instruments 160494427.01 40123606.76 160494427.01 40123606.76
The difference between the initial
recognition cost of long-term equity 62083693.36 15520923.34 62083693.36 15520923.34
investment and tax basis
Rent receivable 8689653.64 2172413.41 7584635.96 1896158.99
Total 231267774.01 57816943.51 230162756.33 57540689.09
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Trade-off between the End balance of Trade-off between the Opening balance of
Items deferred income tax deferred income tax deferred income tax deferred income tax
assets and liabilities assets or liabilities after assets and liabilities at assets or liabilities afteroff-set period-begin off-set
Deferred income tax
assets -9298589.69 68718492.58 -9566421.29 69823814.29
Deferred income tax
liabilities -9298589.69 48518353.82 -9566421.29 47974267.80
(4)Details of income tax assets not recognized
In RMB
Items Balance in year-end Balance in year-begin
Deductible temporary difference 6189658.00 5742636.02
Deductible loss 463254123.12 464226095.10
Total 469443781.12 469968731.12
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance in year-begin Remark
202474265351.7479132962.34
202516680938.2316680938.23
2026128597715.91128597715.91
202716173145.0712155889.69
124Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
202822451907.9522463907.95
2029129732249.98129766788.98
203075352814.2475427892.00
Total 463254123.12 464226095.10
31 .Other non-current assets
In RMB
Balance in year-end Balance in year-begin
Book balance Provision Book value Book balance Provision Book value
Items for for
devaluatio devaluatio
n n
Prepayment for
engineering and 14492289.46 0.00 14492289.46 16792930.20 0.00 16792930.20
equipment
Investment funds to
25760086.270.0025760086.2725760086.270.0025760086.27
be liquidated
Total 40252375.73 0.00 40252375.73 42553016.47 0.00 42553016.47
32. Short-term borrowings
（1）Categories of short-term loans
In RMB
Items Balance in year-end Balance in year-begin
Credit loans 8000000.00 7000000.00
Total 8000000.00 7000000.00
Note：None
(2) Situation of Overdue Outstanding Short-Term Borrowing
The total amount of overdue short-term loans at the end of this period is in RMB 0.00 of which the important
overdue short-term loans are as follows: None
33. Transactional financial liabilities
None
34. Derivative financial liability
None
35.Notes payable
In RMB
Type Balance in year-end Balance in year-begin
Bank acceptance Bill 15284993.54 0.00
Total 15284993.54 0.00
125Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
The total note payable not due at the end of the period is 0.00 yuan.
36. Accounts payable
(1) List of accounts payable
In RMB
Items Balance in year-end Balance in year-begin
Payment for goods 408449533.79 304916368.65
Service charge 16255936.12 11386158.86
Localities 7901712.00 4609134.50
Subcontracting payment 2170315.29 3970214.14
Others 2711668.87 2167997.55
Total 437489166.07 327049873.70
(2) Significant advance from customers aging over one year
On June 30 2023 the Company had no significant accounts payable with an aging of more than one year.
37.Advance account
(1) List of Advance account
In RMB
Items Balance in year-end Balance in year-begin
Rent and other 1164665.15 1393344.99
Total 1164665.15 1393344.99
(2) Significant advance from customers aging over one year
On June 30 2023the Company had no significant accounts payable with an aging of more than one year.
38.Contract liabilities
In RMB
Items Balance in year-end Balance in year-begin
Goods 4975276.30 4274109.40
Total 4975276.30 4274109.40
Amount and reasons for the significant change in the book value during the reporting period
None
39.Payable Employee wage
(1) List of Payroll payable
In RMB
Items Balance in year- Increase in this Payable in this Balance in year-endbegin period period
I. Short-term compensation 60940432.90 129088042.66 132984150.88 57044324.68
II.Post-employment benefits -
defined contribution plans 7103766.95 7103766.95
126Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Dismissal benefits 226012.00 334223.86 336765.26 223470.60
Total 61166444.90 136526033.47 140424683.09 57267795.28
（2）Short-term remuneration
In RMB
Items Balance in year- Increase in this Decrease in this Balance in year-endbegin period period
1.Wages bonuses allowances
and subsidies 57472981.87 115273963.12 119127683.37 53619261.62
2.Employee welfare 29185.44 4206521.68 4235707.12 0.00
3. Social insurance premiums 0.00 3013562.59 3013562.59 0.00
Including：Medical insurance 0.00 2107846.75 2107846.75 0.00
Work injury insurance 0.00 160521.32 160521.32 0.00
Maternity insurance 0.00 219350.79 219350.79 0.00
Other 0.00 525843.73 525843.73 0.00
4. Public reserves for housing 202391.00 3992227.00 4194618.00 0.00
5.Union funds and staff
education fee 3235874.59 2601768.27 2412579.80 3425063.06
Other 60940432.90 129088042.66 132984150.88 57044324.68
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase in this period Decrease in this period Balance in year-end
1. Basic old-age
insurance premiums 0.00 5633933.03 5633933.03 0.00
2.Unemployment
insurance 0.00 140977.99 140977.99 0.00
3. Annuity payment 0.00 1328855.93 1328855.93 0.00
Total 0.00 7103766.95 7103766.95 0.00
Other note
The Group participates in pension insurance and unemployment insurance plans established by
government agencies according to regulations and according to the plans the Group pays fees to these plans
according to the prescribed standards. In addition to the above-mentioned monthly deposit fees the Group will
no longer assume further payment obligations. The corresponding expenses are included in the current profits
and losses or the related asset costs when incurred.The Company shall contribute RMB5633933.03 to the pension insurance plan and RMB140977.99 to the
unemployment insurance plan. As at 30 June 2023 the Company paid the full amount of pension insurance and
unemployment insurance plans payable during the reporting period.
40.Tax Payable
In RMB
Items Balance in year-end Balance in year-begin
VAT 597591.27 1740677.77
Enterprise Income tax 1944668.44 4655525.64
Individual Income tax 177457.85 1847004.45
Other 3313523.49 654104.65
127Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Total 6033241.05 8897312.51
41.Other payable
In RMB
Items Balance in year-end Balance in year-begin
Other payable 187021282.45 197345455.37
Total 187021282.45 197345455.37
（1）Interest payable
None
（2）Dividends payable
Other explanations including significant dividends payable that have not been paid for more than 1 year it shall
disclose the reasons for non-payment: None
(3) Other accounts payable
1） Other accounts payable listed by nature of the account
In RMB
Items Balance in year-end Balance in year-begin
Engineering Equipment fund 80153167.17 83337092.31
Unit account 47534662.26 53102831.34
Deposit 32910156.52 45628573.39
Other 26423296.50 15276958.33
Total 187021282.45 197345455.37
2） Important other payables with an aging of more than 1 year
In RMB
Items Balance at the end of this year Reasons for no payment or carry-over
Beijing CEEDI Engineering & The final payment settlement of the
16724271.45
Technology Co. Ltd. project has not been completed
Total 16724271.45
42. Liabilities classified as holding for sale
None
43. Non-current liabilities due within 1 year
In RMB
Items Balance in year-end Balance in year-begin
Long-term due within one year 100024512.50 97182080.19
Lease liabilities due within one year 7465519.14 7001358.03
Total 107490031.64 104183438.22
128Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
44.Other current liabilities
In RMB
Items Balance in year-end Balance in year-begin
Did not terminate the confirmation bill
40032610.2248387401.67
endorsement discount
Return payable 34117277.42 44558340.11
Total 74149887.64 92945741.78
45. Long-term borrowing
(1) List of Long-term borrowing
In RMB
Items Balance in year-end Balance in year-begin
Guaranteed loan 657173111.84 704603665.19
Less: Long-term loans due within one
year 100024512.50 97182080.19
Total 557148599.34 607421585.00
Description of the long-term loan classification
SAPO Photoelectric a subsidiary of the Company mortgaged its real estate rights such as the factory
building and the Company and Hangzhou Jinjiang Group Co. Ltd. provided 60% and 40% joint guarantee for
the loan respectively.
46.Bond payable
None
47. Lease liabilities
In RMB
Items Balance year-end Year-beginning balance
lease liabilities 17823282.59 15630030.74
Less：Lease liabilities due within 1 year 7465519.14 7001358.03
Total 10357763.45 8628672.71
48. Long-term payable
None
49. Long term payroll payable
None
50.Estimated liabilities
None
129Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
51.Deferred income
In RMB
Items Beginning of term Increased this term Decreased thisterm End of term Reason
Government Government
Subsidy 117814796.10 8628497.04 21689214.87 104754078.27 Subsidy
Total 117814796.10 8628497.04 21689214.87 104754078.27
Details of government subsidies：
In RMB
New Amount Other Amount of
Beginning subsidy in transferred income cost
Asset-
Items of term current to non- recorded in deducted in
Other End of term related or
period operational the current the current
decrease income-
income period period related
Production -
line 80986810. 8628497.0 10368087. 76747220.32500000.0 Asset-
subsidy 31 4 03 2 related0
Equipment 30827985. 2821127.8 28006857.9 Asset-
subsidy 79 4 5 related
Material 6000000.0 6000000.0
subsidy 0.00
Income-
0 0 related
52. Other non-current liabilities
None
53.Stock capital
In RMB
Changed（+，-）Year-beginning Balance in year-
balance Issuance of Bonus Capitalizatio end
new share shares n of public Other Subtotal
reserve
Total of 0.00 0.00 0.00 0.00 0.00
506521849.00506521849.00
capital shares
54. Other equity instruments
None
55. Capital reserves
In RMB
Items Year-beginning balance Increase in the Decrease in the Year-end balance
current period current period
Share premium 1826482608.54 0.00 0.00 1826482608.54
130Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Other capital reserves 135117216.09 0.00 0.00 135117216.09
Total 1961599824.63 0.00 0.00 1961599824.63
56.Treasury stock
None
57. Other comprehensive income
In RMB
Amount of current period
Less： Less：
Amount
transferred Prior
into profit period
and loss in included inYear- Amount After-tax After-tax
Items beginning incurred the current
other Less： Year-end
composite attribute to attribute to
balance before period that Income tax
balance
income the parent minority
income tax recognied
into other transfer to
expenses company shareholder
comprehen retained
sive income in
income in the current
prior period period
1. Other
comprehen
sive
income that
cannot be 10858434 108584340.00 0.00 0.00 0.00 0.00 0.00
reclassified 4.77 4.77
in the loss
and gain in
the future
Changes in
fair value
of
investment 10858434 0.00 0.00 0.00 0.00 0.00 0.00 0.00
s in other 4.77
equity
instruments
II. Other
comprehen
sive
income to 1012264.5 1245855.3
be 352684.20 0.00 0.00 0.00 233590.80 119093.404 4
reclassified
into profit
or loss
Changes in
fair value
of - 297733.50 0.00 0.00 0.00 178640.10 119093.40 178640.10
receivables 178640.10
financing
Translation
difference
of foreign 1190904.6 1245855.3
currency 54950.70 0.00 0.00 0.00 54950.70 0.004 4
financial
statements
Total of
other 10959660 10983020
comprehen 352684.20 0.00 0.00 0.00 233590.80 119093.409.31 0.11
sive
131Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
income
58. Special reserves
None
59. Surplus reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus
reserve 100909661.32
0.000.00100909661.32
Total 100909661.32 0.00 0.00 100909661.32
Note to surplus reserve including the note to its increase/decrease and the cause(s) of its movement in the
reporting period: None
60. Retained profits
In RMB
Items Amount of current period Amount of previous period
Retained earnings before adjustments at the
year beginning 170636610.95 125317336.31
Retained earnings after adjustments at the
year end 170636610.95 125317336.31
Add: Net profit attributable to owners of the
36307162.9773309182.94
Company for the period
Less：Statutory surplus reserve 0.00 2663815.85
Common stock dividend payable 30391310.94 25326092.45
Retained profits at the period end 176552462.98 170636610.95
As regards the details of adjusted the beginning undistributed profits
None
61. Business income Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 1470203939.11 1286170472.71 1425009759.63 1240002222.92
Other business 19891730.44 0.00 20127549.46 2985871.14
Total 1490095669.55 1286170472.71 1445137309.09 1242988094.06
Income-related information:
In RMB
Property leasing and
Product type Polarizer Textile Total
management
Product 1412410148.66 56093359.66 21592161.23 1490095669.55
Including
Polarizer 1412410148.66 1412410148.66
Property leasing
56093359.6656093359.66
and management
132Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Textile 21592161.23 21592161.23
Area 1412410148.66 56093359.66 21592161.23 1490095669.55
Including
Domestic 1361868120.05 56093359.66 9702693.10 1427664172.81
Overseas 50542028.61 0.00 11889468.13 62431496.74
Total 1412410148.66 56093359.66 21592161.23 1490095669.55
Description of performance obligations
The Group's goods sales are mainly the production and sales of polarizer and textile-related goods. For goods
sold to customers the Group recognizes income when the control of the goods is transferred that is when the
goods are delivered to the designated place of the other party and signed by the other party. Since the delivery of
goods to customers represents the right to unconditionally receive the contract consideration the maturity of the
money only depends on the passage of time so the Group recognizes a receivable when the goods are delivered to
professional customers. When the customer prepays the payment the Group recognizes the transaction amount
received as a contractual liability until the goods are delivered to the customer.The Company provides property and leasing services to customers which is a performance obligation to be
fulfilled within a certain period of time. The Group recognizes income in the process of providing property and
leasing services.Information related to the transaction price apportioned to the residual performance obligation:
On June 30 2023 The amount of revenue corresponding to performance obligations of contracts signed but not
performed or not fully performed yet was 4975276.30 Yuan at the period-end among which RMB
4975276.30 Yuan was expected to be recognized in 2023.
The amount of revenue corresponding to performance obligations of contracts signed but not performed or
not fully performed yet was RMB1867398.72 at the period-end among which RMB 1867398.72 was
expected to be recognized in 2023 RMB 0 was expected to be recognized in 2024. RMB 0 was expected to be
recognized in 2025.
62.Taxes and surcharges
In RMB
Items Amount of current period Amount of previous period
Property tax 2918264.56 2911689.84
Stamp tax 794946.41 829848.83
Urban construction tax 280887.35 193493.65
Education surcharge 204444.12 133269.00
Land use tax 188021.08 97737.54
vehicle and vessel usage tax 4200.00 1440.00
Other 6566.26 3883.32
Total 4397329.78 4171362.18
63.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Employee compensation 10230501.01 9765028.00
Sales service charge 3893275.02 5791774.85
Other 1154529.29 922396.04
Business entertainment 481984.21 734977.55
Travel expenses 390639.14 444372.70
Exhibition fee 288544.63 697198.25
Total 16439473.30 18355747.39
133Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
64. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 44414164.48 40666351.70
Depreciation of fixed assets 5553209.06 7296978.02
Water and electricity 2328829.65 2713713.93
Intermediary organ 4330104.04 2701374.70
Intangible assets amortization 2472075.72 2514696.45
Travel expenses 224064.04 131833.96
Office expenses 449240.06 362061.20
Business entertainment 746448.25 729775.83
Other 4781274.52 4331403.07
Tax 65299409.82 61448188.86
65.R & D costs
In RMB
Items Amount of current period Amount of previous period
Material 25540854.61 23286446.67
Wage 8292440.77 8566206.98
Depreciation 1686985.39 1908863.88
Fuel & Power 446284.09 473821.67
Travel expenses 19400.94 45732.13
Other 18222.82 589921.33
Total 36004188.62 34870992.66
66.Financial Expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 13965081.41 15882534.27
Interest income -5318571.16 -773863.34
Exchange loss -7582000.80 -27366911.14
Fees and other 3114986.18 3424366.77
Total 4179495.63 -8833873.44
67.Other income
In RMB
Items Amount of current period Amount of previous period
Govemment Subsidy 19369307.55 10780654.48
68. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment returns accounted
-2111260.031658532.04
for by equity method
Investment income of transactional financial
8948614.728967680.80
assets during the holding period
134Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Dividend income earned during investment
holdings in other equity instruments 906000.00 708000.00
Other -291040.32
Total 7743354.69 11043172.52
69.Net exposure hedging income
None
70. Gains on the changes in the fair value
None
71. Credit impairment loss
In RMB
Items Amount of this period Amount of last period
Loss of bad debts in other receivables 383523.90 6951880.47
Loss of bad note receivable 0.00 291096.44
Loss of bad accounts receivable -9052893.75 -10228230.44
Total -8669369.85 -2985253.53
72. Losses from asset impairment
In RMB
Items Amount of current period Amount of previous period
II. Loss of inventory price and Impairment of
contract performance costs -35512897.29 -42073672.20
Total -35512897.29 -42073672.20
73. Asset disposal income
In RMB
Items Amount of current period Amount of previous period
Gains& losses on the disposal of fixed
321.08-11114.72
assets
74. Non-Operation income
In RMB
Items Amount of current period Amount of previous Recorded in the amount of the non-
period recurring gains and losses
Supplier compensation 71816.74 1615000.00 71816.74
Payable without payment 0.00 78644.95 0.00
Other 329571.05 74470.10 329571.05
Total 401387.79 1768115.05 401387.79
Government subsidies recorded into current profits and losses： None
135Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
75.Non-current expenses
In RMB
Items Amount of current period Amount of previous The amount of non-operating gainsperiod & lossed
Compensation expenses 3009886.86 0.00 3009886.86
Non-current asset Disposition
8807.8710885.388807.87
loss
Other 18886.32 202204.91 18886.32
Total 3037581.05 213090.29 3037581.05
76.Income tax expenses
(1)Income tax expenses
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 4063609.65 16930.91
Deferred income tax expense 1649407.73 323966.90
Total 5713017.38 340897.81
(2)Reconciliation of account profit and income tax expenses
In RMB
Items Amount of current period
Total profits 57899822.61
Income tax expenses calculated at the applicable tax rate 14474955.65
Influence of different tax rates applied by some subsidiaries -2763593.41
Income not subject to tax 299238.91
Non-deductible costs expenses and losses 3425.00
Tax impact by the unrecognized deductible losses and deductible temporary
differences in previous years -17279.47
Tax impact of unrecognized deductible losses and deductible temporary
differences -883101.00
Tax impact of research and development fee plus deduction -5400628.30
Income tax expense 5713017.38
77. Other comprehensive income
Refer to the notes 57
78. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Items Amount of current period Amount of previous period
Current account and other 59933695.82 120535575.04
Government Subsidy 8752204.09 13883551.50
Letter of Credit Deposit 8087465.25 152041095.07Interest income（Not including
1221464.54559472.02financing product）
Total 77994829.70 287019693.63
Note to other cash received in connection with operating activities: None
136Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
(2)Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Current account and other 67303982.70 37548518.13
Letter of Credit Deposit 10788695.79 11655819.11
Total 78092678.49 49204337.24
Note to other cash paid in connection with operating activities: None
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structured deposits financial products
195000000.00635000000.00
principal and income
Total 195000000.00 635000000.00
Note to other cash received related to other investment activities：None
(4).Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Purchase of financial management
631537000.00650000001.00
structured deposit and investment
Total 631537000.00 650000001.00
Note to other Cash paid related to other investment activities： None
（5）Other cash received in relation to financing activities
None
（6）Cash paid related with financing activities
In RMB
Items Amount of current period Amount of previous period
Lease payment 4141770.57 0.00
Total 4141770.57 0.00
Note to other Cash paid related with financing activities： None
79. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Items Amount of current Amount ofperiod previous period
I. Adjusting net profit to cash flow from operating activities
137Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Net profit 52186805.23 70104710.88
Add: Impairment loss provision of assets 44182267.14 45058925.73
Depreciation of fixed assets oil and gas assets and consumable biological assets 113129673.90 70459401.36
Depreciation of Use right assets 4577501.46 4303599.85
Amortization of intangible assets 2472075.72 460596.04
Amortization of Long-term deferred expenses 1010991.86 674121.16
Loss on disposal of fixed assets intangible assets and other long-term deferred assets -321.08 11114.72
Fixed assets scrap loss 0.00 0.00
Loss on fair value changes 0.00 0.00
Financial cost -9785585.78 -8833873.44
Loss on investment -7387354.69 -11043172.52
Decrease of deferred income tax assets 1105321.71 43628.11
Increased of deferred income tax liabilities 544086.02 97374.65
Decrease of inventories -140167792.05 -113943401.07
Decease of operating receivables -172947643.53 -74703894.32
Increased of operating Payable 125482947.69 96749103.44
Other 0.00 0.00
Net cash flows arising from operating activities 14402973.60 79438234.59
II. Significant investment and financing activities that without cash flows:
Conversion of debt into capital 0.00 0.00
Convertible corporate bonds maturing within one year 0.00 0.00
Financing of fixed assets leased 0.00 0.00
III .Movement of cash and cash equivalents：
Ending balance of cash 345683735.99 348660980.95
Less: Beginning balance of cash equivalents 874474834.46 302408433.72
Add：End balance of cash equivalents 0.00 0.00
Less: Beginning balance of cash equivalents 0.00 0.00
Net increase of cash and cash equivalent -528791098.47 46252547.23
(2) Net Cash paid of obtaining the subsidiary
None
(3) Net Cash receive of disposal of the subsidiary
None
(4) Component of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
I. Cash 345683735.99 874474834.46
Including：Cash at hand 2231.43 3980.56
Demand bank deposit 345681504.56 874470853.90
III. Balance of cash and cash equivalents
345683735.99874474834.46
at the period end
80. Note of statement of changes in the owner's equity
138Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Specify the description of the item "others" and the adjusted amount of the balance at the end of last year: None
81. The assets with the ownership or use right restricted
In RMB
Items Book value at the end of the reportingperiod Cause of restriction
CD + structured deposit + time deposit + bank
Monetary fund 270542231.07 draft margin
Bill receivable 40032610.22 Endorsed but not yet due bank acceptance bills
Fixed assets 462070010.10 Mortgage
Intangible assets 32542134.43 Mortgage
Total 805186985.82
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Items Closing foreign currency Exchange rate Closing convert to RMBbalance balance
Monetary funds 9451451.89
Including：USD 1235678.45 7.2258 8928765.34
HKD 66465.00 0.9220 61280.73
Yen 9209697.00 0.0501 461405.82
Account payable 37405548.36
Including：USD 5141157.27 7.2258 37148974.20
HKD 278280.00 0.9220 256574.16
Other receivable 509611.25
Including：USD 70526.62 7.2258 509611.25
Account payable 331640814.19
Including：USD 8752201.63 7.2258 63241658.54
Yen 5355607174.00 0.0501 268315919.42
HKD 90277.91 0.9220 83236.23
Other payable 5264875.32
Including：USD 676686.00 7.2258 4889597.70
Yen 3381984.00 0.0501 169437.40
Euro 22500.00 7.8771 177234.75
HKD 31025.46 0.9220 28605.47
(2) Note to overseas operating entities including important overseas operating entities witch should be
disclosed about its principal business place function currency for bookkeeping and basis for the choice.In case of any change in function currency the cause should be disclosed.□ Applicable √ Not applicable
83. Hedging
Arbitrage According to arbitrage category to disclose arbitrage item relevant arbitrage tools and the arbitraged
risk qualitative and quantitative information: None
84. Government subsidies
139Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
（1）Government subsidies confirmed in current period
In RMB
Items Amount Project Amount included in currentprofit and loss
Production line subsidy 76747220.32 Deferred income 10368087.03
Equipment subsidy 28006857.95 Deferred income 2821127.84
Material subsidy 0.00 Deferred income 6000000.00
Other 180092.68 Deferred income 180092.68
（2）Government subsidy return
□ Applicable √ Not applicable
85.Other
None
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
None
(2) Combined cost and goodwill
None
(3) The identifiable assets and liabilities of acquiree at purchase date
None
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
None
(6) Other note:
None
140Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
None
(2) Combination cost
None
(3) The book value of the assets and liabilities of the merged party on the date of consolidation
None
3. Counter purchase
Basic information of trading the basis of transactions constitute counter purchase the retain assets liabilities
of the listed companies whether constituted a business and its basis the determination of the combination costs
the amount and calculation of adjusted rights and interests in accordance with the equity transaction process.None
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Note to the change in the consolidation scope (e.g. new subsidiaries liquidation subsidiaries etc.) caused by
other reasons and relevant information:
None
6.Other
None
141Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main Register Share-holding ratioSubsidiary operatio ed place Business nature Directly Indirectl Acquired wayn y
Shenzhen Lishi Industry Shenzhe Shenzhe 100.00
Development Co. Ltd n n Property Management
Establish
%
Establish
100.00
Shenzhen Huaqiang Hotel Shenzhe Shenzhen n Property Management %
Shenfang Property Management Co. Shenzhe Shenzhe 100.00
Ltd. n n Property Management
Establish
%
Establish
Shenzhen Beauty Century Garment Shenzhe Shenzhe Production of fully 100.00
Co. Ltd. n n electronic jacquardknitting whole shape %
Shenzhen Shenfang Sungang Shenzhe Shenzhe 100.00
Property Management Co. Ltd. n n Property Management
Establish
%
Establish
SAPO Photoelectric Shenzhe Shenzhe Polarizer production
n n and sales 60.00%
Shengtou (Hongkong) Co.Ltd. Hongko Hongko Production and sales Establish
ng ng of polarizer 100.00%
Establish
Shenzhen Shengjinlian Technology Shenzhe Shenzhe Production and sales 100.00%
Co. Ltd. n n of polarizer
Explanation that the shareholding ratio in subsidiaries is different from the voting right ratio: None
Basis for holding half or less voting rights but still controlling the investee and holding more than half voting
rights but not controlling the investee: None
For the important structured subjects included in the scope of consolidation the control basis is: None
Basis for determining whether the company is an agent or a principal: None
Other note：Note
（2）Significant not wholly-owned subsidiaries
In RMB
Profit or loss
Name Holding proportion of attributable to
Dividend declared Closing balance of
non-controlling interest non-controlling to non-controlling non-controlling
interest interest interest
SAPO Photoelectric 40.00% 15879642.26 0.00 1197776505.87
Other note：None
142Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
（3）Main financial information of significant not wholly-owned subsidiaries
In RMB
Closing balance Beginning balance
Subsid Curren Non- Curren Non-Non- Total Non- Total
iaries Curren Total t current Curren Total t currentcurrent liabiliti current liabiliti
t assets assets liabiliti Liabili t assets assets liabiliti Liabili
assets es assets es
es ties es ties
SAPO 2126 2307 4433 77328 67131 1444 1936 2419 4355 67407 73281 1406
Photoe 22071 46378 68450 5887. 8083. 60397 54126 43260 97386 1107. 9068. 89017
lectric 9.76 0.40 0.16 90 13 1.03 3.47 2.01 5.48 48 02 5.50
In RMB
Current term Last term
Total Cash flow Total Cash flow
Subsidiarie
s Operating comprehen from Operating comprehen fromNet profit Net profit
revenue sive operating revenue sive operating
income activities income activities
SAPO
1417425039699105.39996839.13933905.1390584969177964.69177964.80837844.
Photoelectr
87.5065153201.04444434
ic
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
None
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
None
2. The transaction of the Company with its owner’s equity share changed but still controlling the
subsidiary
(1) Note to owner’s equity share changed in subsidiary
None
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity
of the parent company
None
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Shareholding
Registra
Main Places Nature of Ratio (%) The accounting treatment of
Name of Subsidiary tion
of Operation Business indire investment in associates
Place direct
ct
Shenzhen Guanhua Printing & Shenzhen Shenzhe Property 50.16% 0.00% Equity method
143Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Dyeing Co. Ltd n leasing
Explanation that the shareholding ratio in the joint venture or associated enterprise is different from the voting
right ratio: None
Basis for holding less than 20% of voting rights but with significant influence or holding 20% or more of
voting rights but without significant influence: None
（2）The Summarized Financial Information of Joint Ventures
In RMB
Year-end balance/ Amount of Year-beginning balance/ Amount of
current period previous period
Current assets 47559682.42 47899181.48
Including： Cash and cash equivalent
Non-current assets 210047689.01 217362821.36
Total assets 257607371.43 265262002.84
Current liabilities 14418070.32 16619409.76
Non-current liabilities 31942467.19 33025262.69
Total liabilities 46360537.51 49644672.45
Minority equity
Attributable to shareholders of the parent company 211246833.92 215617330.39
Share of net assets calculated by stake 105961411.89 108153652.92
Adjustment items
-- Goodwill 21595462.44 21595462.44
-- Internal transactions did not achieve profit
--Other -242823.92 -242843.60
Book value of equity investment in joint ventures 127314050.41 129506271.76
The fair value of the equity investment of a joint
venture with a public quotation
Operating income 4366254.94 10946554.54
Financial expenses -89049.09 -135801.19
Income tax expenses -902781.76 -717712.93
Net profit -4370457.23 2617456.35
Net profit from terminated operations
Other comprehensive income
Total comprehensive income -4370457.23 2617456.35
Dividends received from joint ventures for this year 0.00 0.00
(3) Main financial information of significant associated enterprise
None
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Associated enterprise
144Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Total book value of investment 4952342.73 4975563.98
Total of the following items calculated
by shareholding ratio
-Net profit 26010.62 269859.91
-Other comprehensive income 54950.70 75756.02
-Total comprehensive income 80961.32 345615.93
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds
to the Company
None
(6) The excess loss of joint venture or associated enterprise
None
(7) The unrecognized commitment related to joint venture investment
None
(8) Contingent liabilities related to joint venture or associated enterprise investment
None
4. Significant common operation
None
5. Equity of structure entity not including in the scope of consolidated financial statements
None
6.Other
None
X. Risks related to financial instruments
The Company's main financial instruments include monetary funds transactional financial assets notes
receivable accounts receivable accounts receivable financing other receivables other equity instruments
investment short-term loans accounts payable other payables other current liabilities long-term loans and
lease liabilities etc. At the end of this year the financial instruments held by the Group are as follows. See Note
(VII) for details. The risks associated with these financial instruments and the risk management policies adopted
by the Group to reduce these risks are as follows. The management of the Group manages and monitors these
risk exposures to ensure that the above risks are controlled within a limited range.
1. Risk management objectives and policies
The Group's goal in risk management is to strike a proper balance between risks and benefits reduce the
negative impact of risks on the Group's operating performance to the lowest level and maximize the interests of
shareholders and other equity investors. Based on this risk management goal the basic strategy of the Group's risk
145Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
management is to identify and analyze all kinds of risks faced by the Group establish an appropriate risk
tolerance bottom line and conduct risk management and timely and reliably supervise all kinds of risks to control
the risks within a limited range.
1.1 Market risk
1.1.1 Foreign exchange risk
Foreign exchange risk refers to the risk of losses caused by exchange rate changes. The Group's foreign
exchange risks are mainly related to US dollars Japanese yen Hong Kong dollars and Euros. Except for some
import purchases and export sales of the Group's companies located in Chinese mainland which are mainly settled
in US dollars Japanese yen Hong Kong dollars and Euros other major business activities of the Group are settled
in RMB.As of 30 June 2023 the Company's assets and liabilities were all RMB balances except for the monetary
items in foreign currencies mentioned in Notes (VII) (82). The foreign exchange risks arising from the assets and
liabilities with foreign currency balances (converted into RMB) described in the table below may have an impact
on the Group's operating results.Items Balance at the end of this year目 Assets Liabilities
USD 46587350.79 68131256.24
Yen 461405.82 268485356.82
Euro 0.00 177234.75
HKD 317854.89 111841.70
The Group pays close attention to the impact of exchange rate changes on the Group's foreign exchange risk.Sensitivity analysis of foreign exchange risk
Sensitivity analysis of foreign exchange risk assumes that all net investment hedging and cash flow hedging
of overseas operations are highly effective.On the basis of the above assumptions with other variables unchanged the pre-tax impact of possible
reasonable exchange rate changes on current profits and losses and shareholders' equity is as follows:
In RMB
This year
Items Changes in exchange rate Impact on profits Impact on shareholders' equity
All foreign
currencies Appreciation of RMB by 5% -14476953.90 -14476953.90
All foreign
currencies Depreciation of RMB by 5% 14476953.90 14476953.90
1.1.2. Interest rate risk - risk of cash flow change
The Company's risk of cash flow changes of financial instruments caused by interest rate changes is mainly
related to bank loans with floating interest rate. The Group continues to pay close attention to the impact of
interest rate changes on the Group's interest rate risk. The Group's policy is to maintain floating interest rates on
these loans and there is no interest rate swap arrangement at present.Sensitivity analysis of interest rate risk
With other variables unchanged the pre-tax impact of possible reasonable interest rate changes on current profits
and losses and shareholders' equity is as follows:
In RMB
This year
Items Interest rate change Impact on profits Impact on shareholders' equity
Floating-rate
loan Increase by 1% -6571731.12 -6571731.12
Floating-rate
loan Decrease by 1% 6571731.12 6571731.12
1.2. Credit risk
On June 302023 the largest credit risk exposure that may cause the Company's financial losses mainly came
from the loss of the Company's financial assets caused by the failure of the other party to the contract including
monetary funds transactional financial assets notes receivable accounts receivable receivables financing and
146Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
other receivables. On the balance sheet date the book value of the Company's financial assets has represented its
maximum credit risk exposure.In order to reduce the credit risk the Company arranges special personnel to determine the credit limit conduct
credit approval and implement other monitoring procedures to ensure that necessary measures are taken to recover
overdue debts. In addition the Group reviews the recovery of financial assets on each balance sheet date to ensure
that sufficient credit loss provision has been made for relevant financial assets. Therefore the management of the
Company believes that the credit risk assumed by the Company has been greatly reduced.The Company's monetary funds are deposited in banks with high credit ratings so the monetary funds only have
low credit risk.On June 30 2023 the balance of accounts receivable of the Company to the top five customers was RMB
497273412.84 accounting for 54.54% of the balance of accounts receivable of the Company. In addition the
Company has no other significant credit risk exposure concentrated in a single financial asset or financial asset
portfolio with similar characteristics.
1.3 Liquidity risk
When managing liquidity risk the Company maintains sufficient cash and cash equivalents as deemed by the
management and monitors them to meet the Company's business needs and reduce the impact of cash flow
fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the
loan agreement.On June 30 2023 the Group's unused comprehensive bank credit line was RMB 70861.00.The financial liabilities held by the Company are analyzed according to the maturity of the undiscounted
remaining contractual obligations as follows:
In RMB
Item Within 1 year 1-5 years Over 5 years Total
Short-term loan 8151016.67 0.00 0.00 8151016.67
Accounts payable 437489166.07 0.00 0.00 437489166.07
Other payables 187021282.45 0.00 0.00 187021282.45
Other current liabilities 74149887.64 0.00 0.00 74149887.64
Long-term loans 100024512.50 594693456.05 86935756.48 781653725.03
Lease liabilities 7465519.14 10357763.45 17823282.59
2. Transfer of financial assets
2.1 Financial assets that have been transferred but have not been derecognized as a whole
On June 30 2023 the book value of bank acceptance bills endorsed by the Company to suppliers for
settlement of accounts payable was RMB 40032610.22. The Company believes that almost all risks and rewards
related to notes receivable at the time of endorsement have not been transferred which does not meet the
conditions for derecognition of financial assets. Therefore the related notes receivable have not been
derecognized as a whole on the endorsement date.
2.2 Derecognition has been made as a whole but the transferor continues to be involved in the transferred
financial assets
The Company endorses the bank acceptance bills held by large state-owned commercial banks with high
credit rating and listed national joint-stock commercial banks to a third party. As almost all the risks and rewards
related to the bank acceptance bills have been transferred to the banks the Company derecognizes the endorsed
and unexpired bank acceptance bills. According to the relevant provisions of the Negotiable Instruments Law of
the People's Republic of China if the bank acceptance bill fails to be paid and accepted at maturity the endorsee
has the right to require the Company to pay off the outstanding balance so the Company continues to be involved
in the endorsed bank acceptance bill. On June 30 2023 the unexpired bank acceptance bill endorsed by the
Company was RMB 54533024.39.
147Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
XI. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
In RMB
Year-end fair value
Items Fair value Fair value Fair value
measurement of measurement of measurement of Total
Level 1 Level 2 Level 3
I. Consistent fair value measurement -- -- -- --
(1) Transactional Financial Asset 0.00 613554063.16 0.00 613554063.16
(II) Receivable financing 0.00 0.00 22863088.36 22863088.36
（III) Other equity instrument 0.00 0.00
167678283.27167678283.27
investment
Total liabilities measured at fair value
on a non-ongoing basis 0.00 613554063.16 190541371.63 804095434.79
II Inconsistent fair value
measurement -- -- -- --
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
None
3. Items measured based on the continuous or uncontinuous level 2nd fair value valuation technique as
used nature of important parameters and quantitative information
Fair value at the end of this
Items year Valuation technique Input value
Transactional financial assets 613554063.16 Discounted cashflow technique Expected yield
4. Items measured based on the continuous or uncontinuous level 3rd fair value valuation technique as
used nature of important parameters and quantitative information
Fair value at the end of this
Items year Valuation technique Input value
Receivable financing 22863088.36 Discounted cashflow technique Discount rate
Comparison of P/B ratio of similar listed
Investment in other equity listed companies companies
instruments 167678283.27 Comparable income
method Market price
148Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3
None
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
None
7. Changes in the valuation technique in the current period and the reason for change
None
8. Fair value of financial assets and liabilities not measured at fair value
Financial assets and liabilities not measured at fair value mainly include monetary funds notes receivable
accounts receivable other receivables short-term loans accounts payable other payables long-term loans and
lease liabilities.The management of the Company believes that the book values of financial assets and financial liabilities
measured in amortized cost in the financial statements are close to their fair values.
9.Other
None
XII. Related parties and related party transactions
1. Information about the parent company of the Enterprise.
Shareholding
ratio of the Percentage of
Name of parent voting rights of the
company Place of registration Business nature Registered capital
parent
company to the parent company to
Company % the Company %
Shenzhen 18/F Investment Equity
Investment Building Shennan investmentRoad Futian real estate 32359000000.00 46.21% 46.21%Holdings Co. Ltd District Shenzhen development etc
Description of the parent company of the Enterprise
The parent company of the Company is a wholly state-owned company approved and authorized by the
Shenzhen Municipal Government and exercises the investor function for the state-owned enterprises within the
authorized scope according to law. The registered capital of the parent company is increased to 32.359 billion
yuan after being approved by resolution of the board of directors but the industrial and commercial change is
yet not completed.Therefore the Company’s ultimate controller is Shenzhen Investment Holdings Co. Ltd.
149Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
2.Subsidiaries of the Company
Details refer to the Note X-9 Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note X-9 Interests in joint ventures or associates
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period or form balance due to related party transactions in previous period:
None
4.Other Related parties information
Other related party Relationship to the Company
The Company's shareholding company and the chairman of the
Shenzhen Xinfang Knitting Co. Ltd.company are the employees of the Company
The Company's shareholding company and the chairman of the
Shenzhen Dailishi Underwear Co. Ltd.company are the employees of the Company
Hengmei Photoelectric Co. Ltd. The controlling party of SAPO Shareholder
Shenzhen Shentou Property Development Co. Ltd. A wholly-owned subsidiary of the parent company
Awholly-owned subsidiary of the parent company Awholly-
Shenzhen Investment Building Hotel Co. Ltd.owned - subsidiary of the parent company
Awholly-owned subsidiary of the parent company Awholly-
owned subsidiary of the parent company
Awholly-owned subsidiary of the parent company Awholly-
Shenzhen SEG Longyan Energy Technology Co. Ltd.owned subsidiary of the parent company
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
Occurred Trading limit Over the trading limit Occurred in
Related party Content
current term approved or not previous term
Shenzhen SEG Longyan
Energy Technology Co. Buy electricity 540788.97 1600000.00 No 0.00
Ltd.Hengmei Photoelectric
Buy optical film 3680715.63 15000000.00 Mo 0.00
Co. Ltd.Hengmei Photoelectric Buy RTP OEM
834265.74 14000000.00 No 0.00
Co. Ltd. services
Sale of goods
In RMB
Related party Content of relatedparty transaction Amount incurred this year Amount incurred last year
Hengmei Photoelectric Co. Ltd. Polarizer 4744631.12 0.00
Shenzhen Shentou Property Textile 54991.15 0.00
Development Co. Ltd.Shenzhen Investment Building Hotel Textile 40614.16 0.00
150Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Co. Ltd.Shenzhen Investment Building Property Textile 26247.79 0.00
Management Co. Ltd.Shenzhen Investment Holdings Co. Ltd Textile 15371.68 0.00
Related transactions on sale goods and receiving services
None
(2) Related trusteeship/contract
None
(3) Information of related lease
None
(4) Related-party guarantee
None
(5) Inter-bank lending of capital of related parties：
In RMB
Related party Amount Start date Expiring date Note
Borrowing fund：
Shenzhen Guanhua
The annual lending
Printing & Dyeing Co. 3806454.17 July 302019 July 302023
interest rate is 0.30%
Ltd.Loaned
(6) Related party asset transfer and debt restructuring
None
(7) Rewards for the key management personnel
In RMB
Items Amount of current period Amount of previous period
Rewards for the key management
2653076.003523165.00
personnel
(8) Other related transactions
None
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party
Balance of Book Balance of Book Balance of Bad debtBook Provision
Account Shenzhen Investment
receivable Holdings Co. Ltd 17370.00 0.00 0.00 0.00
Other Account Shenzhen Dailishi
receivable Underwear Co. Ltd. 550000.00 27500.00 1100000.00 58850.00
151Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
（2）Payables
In RMB
Name Related party Amount at year end Amount at year beginning
Other payable Yehui International Co.Ltd. 1124656.60 1124656.60
Other payable Shenzhen Changlianfa
Printing & dyeing Co. Ltd. 2023699.95 2023699.95
Other payable Shenzhen Guanhua Printing 3806454.17 3806454.17
& dyeing Co. Ltd.Other payable Shenzhen Xinfang Knitting 244789.85 244789.85
Co. Ltd.Other payable Shenzhen Investment 0.00 643987.04
Holdings Co. Ltd
7. Related party commitment
None
8.Other
None
XIII. Share payment
1. Overall situation of share payment
□Applicable √Not applicable
2. Equity-settled share-based payment
□Applicable √Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
None
5.Other
None
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
152Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
(1) Capital commitment
In RMB
Items Amount at the end of this year Amount at the end of last year
Contracted but not recognized in the financial
statements
Commitment to purchase and build long-term
assets 9826665.40 3761094.00
2. Contingency
(1) Significant contingency at balance sheet date
None
(2) The Company have no significant contingency to disclose also should be stated
None
3.Other
None
XV. Events after balance sheet date
1. Significant events had not adjusted
None
2. Profit distribution
None
3. Sales return
None
4. Notes of other significant events
None
XVI. Other significant events
1. Correction of the accounting errors in the previous period
None
2. Liabilities restructuring
None
3. Replacement of assets
None
4. Pension plan
None
153Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
5. Discontinuing operation
None
6. Segment information
(1) Basis for determining the reporting segments and accounting policy
The Company determines its operating divisions based on its internal organizational structure management
requirements and internal reporting system. Based on the operating divisions the Company confirms three
reporting divisions namely textiles polarizer trade and property leasing.Divisional reporting information is disclosed in accordance with the accounting policies and measurement
standards adopted by each division when reporting to the management. These measurement basis are consistent
with the accounting and measurement basis for financial statement preparation.
（2）Financial information of the report division
In RMB
Items Polarizer Textile Property lease Offset betweenand other divisions Total
Operating income
Including: revenue
from foreign 1412410148.66 56093359.66 21592161.23 0.00 1490095669.55
transaction
Revenue from inter-
segment 0.00 1580122.82 46476.10 -1626598.92 0.00
transactions
Total operating
income of segment 1412410148.66 57673482.48 21638637.33 -1626598.92 1490095669.55
Operating expenses 1349302885.40 40298941.06 24372370.21 -1483826.81 1412490369.86
Operating profit 38699455.89 25336492.52 -3357160.43 -142772.11 60536015.87
Net profit 36115184.98 20124415.57 -3354455.12 -698340.20 52186805.23
Total assets of
segment 4401822948.27 1291062431.45 38894981.64 -58934723.45 5672845637.91
Total liabilities of
segment 1494650341.37 140990476.37 34122817.74 -50108501.48 1619655134.00
(3) In case there is no reporting segment or the total assets and liabilities of the reporting segments
cannot be disclosed explain the reason
None
（4）Other note
None
7. Other significant transactions and matters that may affect investors' decision making
None
8.Other
None
154Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
Amount in year-end Amount in year-beginning
Categor Book balance Bad debt provision Book Book balance Bad debt provisiony BookAmount Proporti Proporti Proporti Proportion(%) Amount on(%) value Amount on(%) Amount on(%) value
Accrual
of bad
debt 187835 779276. 180042 163561 713159. 156430
100.00%4.15%100.00%4.36%
provisio 40.82 24 64.58 83.36 25 24.11
n by
portfolio
187835779276.180042163561713159.156430
Total 100.00% 4.15% 100.00% 4.36%
40.822464.5883.362524.11
Accrual of bad debt provision by portfolio:：
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Accrual portfolio 18783540.82 779276.24 4.15%
Total 18783540.82 779276.24
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 16298464.82
1- 2 years 946760.00
2-3 years 1538316.00
Total 18783540.82
(2) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening Reversed orbalance Write- Closing balancAccrual collected Other
amount off
Accrual portfolio 713159.25 66116.99 0.00 0.00 0.00 779276.24
Accrual single 0.00 0.00 0.00 0.00 0.00 0.00
Total 713159.25 66116.99 0.00 0.00 0.00 779276.24
155Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Name Closing balance Proportion % Balance of Bad debt provision
Client 1 12780240.15 68.04% 199497.75
Client 2 2485076.00 13.23% 124253.80
Client 3 1593487.36 8.48% 83658.09
Client 4 1472107.76 7.84% 71370.00
Client 5 84420.00 0.45% 4221.00
Total 18415331.27 98.04%
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
None
2. Other accounts receivable
In RMB
Items Closing balance Opening balance
Other accounts receivable 14116168.90 14132756.62
Total 14116168.90 14132756.62
（1）Interest receivable
1) Category of interest receivable
None
2) Significant overdue interest
None
3）Bad-debt provision
□ Applicable √ Not applicable
156Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
(2)Dividend receivable
1) Category of Dividend receivable
None
2) Significant dividends receivable with age exceeding 1 year
None
3) Provision for bad debts
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Internal current account 15830841.48 15349339.97
Related party transactions within the
13115619.1712980241.09
consolidation scope
Other 330734.21 1056701.52
Spare funds and employee borrowing 65000.00 0.00
Deposit and security deposit 10000.00 10000.00
Total 29352194.86 29396282.58
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Bad Debt Reserves Expected credit Expected credit loss over Expected credit losses for Total
losses over the life (no credit the entire duration (credit
next 12 months impairment) impairment occurred)
Balance as at January 1 2023 59301.12 3018.92 15201205.92 15263525.96
Balance as at January 1
2023in current
Provision in Current Year 27500.00 0.00 0.00 27500.00
Reversal in Current Year -55000.00 0.00 0.00 -55000.00
Balance as at 30 June 2023 31801.12 3018.92 15201205.92 15236025.96
Loss provision changes in current period change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balanceWithin 1 year(Including 1 year） 3364804.74
1-2 years 10707995.02
Over 3 years 15279395.10
Over 5 years 15279395.10
Total 29352194.86
157Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
3) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or
Accrual collected Write-off Other
Closing balance
amount
Accrual of bad debt
15111246.320.000.000.000.0015111246.32
provision by single item
Accrual of bad debt
152279.6427500.00-55000.000.000.00124779.64
provision by portfolio:
Total 15263525.96 27500.00 -55000.00 0.00 0.00 15236025.96
Where the significant amount of the provision for bad debt recovered or reversed: None
4) Accounts receivable actually written off in the reporting period
None
5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Proportion of total
Year-end balance year-end balance of Year-end balance
Unit name Payment nature of other Aging other receivables (%) of credit loss
receivables provision
Internal
Client 1 borrowing and Over 1-513115619.17 44.68% 0.00
interest years
Client 2 Unit account 11389044.60 Over 5 years 38.80% 11389044.60
Client 3 Unit account 1800000.00 Over 5 years 6.13% 1800000.00
Client 4 Unit account 1018295.37 Over 5 years 3.47% 1018295.37
Client 5 Unit account 592420.00 Over 5 years 2.02% 592420.00
Total 27915379.14 95.10% 14799759.97
6) Accounts receivable involved with government subsidies
None
7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
None
8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
None
3. Long-term equity investment
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in 1974532127. 1957949498. 1974532127. 1957949498.
16582629.3016582629.30
subsidiaries 39 09 39 09
158Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Investments in
associates and 132425526.41 0.00 132425526.41 134481835.74 0.00 134481835.74
joint ventures
2106957653.2090375024.2109013963.2092431333.
16582629.3016582629.30
Total 80 50 13 83
（1）Investment to the subsidiary
In RMB
Increase /decrease in reporting period Closing balance
Name Opening balance Add Closing balance of impairment
invest Other provision
ment
SAPO Photoelectric 1910247781.94 0.00 0.00 0.00 0.00 1910247781.94 14415288.09
Shenzhen Lisi
Industrial 8073388.25 0.00 0.00 0.00 0.00 8073388.25 0.00
Development Co. Ltd.Shenzhen Beauty
Centruty Garment Co. 16598166.34 0.00 0.00 0.00 0.00 16598166.34 2167341.21
Ltd.Shenzhen Huaqiang
Hotal 15489351.08 0.00 0.00 0.00 0.00 15489351.08 0.00
Shenfang Property
Management Co. Ltd. 1713186.55 0.00 0.00 0.00 0.00 1713186.55 0.00
Shenfang Sungang
Property Management 5827623.93 0.00 0.00 0.00 0.00 5827623.93 0.00
Co. Ltd.Total 1957949498.09 0.00 0.00 0.00 0.00 1957949498.09 16582629.30
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period Closi
ng
Adjustm Declarat Withd balan
Opening Add Decre Gain/los ent of Other ion of rawnName Closing ce ofbalance invest ased s of other equity cash impair balance impai
ment invest Investm compreh chang dividend ment
Other
rment
ment ent ensive es s or provis provis
income profit ion ion
I. Joint ventures
Shenzhen
Guanhua -
1295062127314
Printing & 0.00 0.00 219222 0.00 0.00 0.00 0.00 0.00 0.00
71.76050.41
Dyeing 1.35
Co. Ltd.-
1295062127314
Subtotal 0.00 0.00 219222 0.00 0.00 0.00 0.00 0.00 0.00
71.76050.41
1.35
II. Associated enterprises
Shenzhen
Guanhua
3105796.124599.323039
Printing & 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
55075.62
Dyeing
Co. Ltd.Yehui -
1869767.54950.7188108
Internation 0.00 0.00 43637.7 0.00 0.00 0.00 0.00 0.00
4300.38
al Co. 5
159Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
Ltd.Subtotal 4975563. 80961.3 54950.7 5111470.00 0.00 0.00 0.00 0.00 0.00 0.00
98206.00
-
Total 1344818 54950.7 1324250.00 0.00 211126 0.00 0.00 0.00 0.00 0.00
35.740526.41
0.03
（3）Other note
None
4.Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Business income Business cost Business income Business cost
Income from Main
Business 39239619.43 4156707.01 19836395.33 3883135.15
Other Business income 0.00 0.00 1320274.42 1320274.42
Total 39239619.43 4156707.01 21156669.75 5203409.57
Income-related information:
In RMB
Type Property management Total
Types of goods 39239619.43 39239619.43
Including
Property lease management and others 39239619.43 39239619.43
Area 39239619.43 39239619.43
Including：
Domestic 39239619.43 39239619.43
Tota 39239619.43 39239619.43
Information related to performance obligations: None
Information related to the transaction price apportioned to the residual performance obligation:
At the end of the reporting period the income amount corresponding to the performance obligations that have
been signed but not fulfilled or completed is 0.00 yuan. Among them RMB 0.00 is expected to be recognized as
revenue in 0 year RMB 0.00 is expected to be recognized as revenue in 0 year and RMB 0.00 is expected to be
recognized as revenue in 0 year.
5.Investment income
In RMB
Items Amount of current period Amount of previous period
Long-term equity investment returns accounted for
by equity method -2111260.03 1658532.04
Investment income of trading financial assets
during the holding period 8906611.67 8967680.80
Dividend income earned during investment
holdings in other equity instruments 906000.00 708000.00
Total 7701351.64 11334212.84
160Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
6.Other
None
XVIII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss 321.08
Govemment subsidy recognized in current gain and loss(excluding those
closely related to the Company’s business and granted under the state’s 19369307.55
policies)
Other non-business income and expenditures other than the above Mainly for quality-2636193.26
compensation
Less :Influenced amount of income tax 2504189.66
Influenced amount of minor shareholders’ equity (after tax) 5609409.35
Total 8619836.36 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition
in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public-Extraordinary Gains and Losses or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item.□ Applicable √Not applicable
2. Return on net asset and earnings per share
Earnings per shareProfit of report period Weighted average returnsequity(%) Basic earnings per Diluted earnings pershare(RMB/share） share(RMB/share)
Net profit attributable to the
Common stock shareholders of 1.27% 0.0717 0.0717
Company.Net profit attributable to the
Common stock shareholders of
Company after deducting of non- 0.97% 0.0547 0.0547
recurring gain/loss.
3. Differences between accounting data under domestic and overseas accounting standards（ 1） Simultaneously pursuant to both Chinese accounting standards and international accounting
standards disclosed in the financial reports of differences in net income and net assets.□ Applicable□√ Not applicable
（2）Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.□ Applicable□√ Not applicable
161Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2023
(3) .Explanation of the reasons for the differences in accounting data under domestic and foreign account
ing standards. If the data that has been audited by an overseas audit institution is adjusted for differences
the name of the overseas institution should be indicated
None
4. Other
None
The Board of Directors of Shenzhen Textile (Holdings) Co. Ltd.August 24 2023
162
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