Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2019 Shenzhen Textile (Holdings) Co., Ltd.
The First Quarterly Report 2019
April 2019
Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2019 1 Important Notice
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof. Other directors attending the Meeting for annual report deliberation except for the followed:
|||||
|-|-|-|-|
|Name of director absent|Title for absent director|Reasons for absent|Attorney|
|Zhu Jun|Chairman|Working reason|Zhu Meizhu|

Mr.Zhu Jun, Person in charge of the Company, Mr. Zhu Meizhu, Chief financial officer and the Ms. Mu Linying , 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 this Quarterly Report .
This Report has been prepared in both Chinese and English , In case any discrepancy , the Chinese version shall prevail.
Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2019 II. Basic Information of the Company
（1）Main financial data and financial index
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes√No
In RMB
|||||
|-|-|-|-|
||||Changes of this period over|
||This period|Same period of last year|same period of last year|
||||（％）|
|Operating income（RMB）|592,839,958.12|221,307,388.08|167.88%|
|Net profit attributable to the shareholders|10,381,938.06|5,616,717.00||
||||84.84%|
|of the listed company（RMB）||||
|Net profit after deducting of non-recurring||||
|gain/loss attributable to the shareholders of|7,034,190.76|-4,641,384.38|251.55%|
|listed company（RMB）||||
|Cash flow generated by business operation,|23,567,172.13|-35,263,573.85||
||||166.83%|
|net（RMB）||||
|Basic earning per share(RMB/Share)|0.0203|0.0110|84.55%|
|Diluted gains per|0.0203|0.0110||
||||84.55%|
|share(RMB/Share)(RMB/Share)||||
|Weighted average ROE(%)|0.43%|0.23%|0.20%|
||||Changes of this period-end|
||End of this period|End of last period|over same period-end of last|
||||year(%)|
|Gross assets（RMB）|4,504,910,782.68|4,619,203,416.79|-2.47%|
|Net assets attributable to the shareholders||||
||2,532,932,438.75|2,373,329,991.86|6.72%|
|of the listed company（RMB）||||

Items and amount of non-current gains and losses
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
|||Changes of this period-end over|
|End of this period|End of last period||
|||same period-end of last year(%)|
|Non-current asset disposal gain/loss(including the write-off part|||
||-638.80||
|for which assets impairment provision is made)|||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2019
||||
|-|-|-|
|Govemment subsidy recognized in current gain and|||
|loss(excluding those closely related to the Company’s business|5,552,132.00||
|and granted under the state’s policies)|||
|Other non-operating income and expenditure except for the|||
||3,080.57||
|aforementioned items|||
|Less: Amount of influence of income tax|25,005.06||
|Amount of influence of minority interests（After tax）|2,181,821.41||
|Total|3,347,747.30|--|

For theCompany’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 recognized 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 First Quarterly Report 2019 II. Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period
1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders
In shares
||||||||
|-|-|-|-|-|-|-|
||||Total preference shareholders with||||
|Total number of common|||||||
|||35,689|the voting power recovered at the||0||
|shareholders at the period-end|||||||
||||end of the reporting period(if any)||||
|Shares held by the top 10 shareholders|||||||
|||||Amount of|Pledging or freezing||
||Properties of|Share||tradable shares|||
|Shareholder name|||Quantity||Status of the||
||shareholder|proportion %||with Conditional||Quantity|
||||||shares||
|||||held|||
|ShenzhenInvestmentHoldings Co.,Ltd.|State-owned legalperson|45.78%|234,069,436|0|||
|ShenzhenShenchaoTechnologyInvestment Co.,Ltd.|State-ownedLegal person|3.15%|16,129,032|0|||
|Sun Huiming|Domestic Natureperson|0.63%|3,224,767|0|||
|Li Songqiang|Domestic Natureperson|0.56%|2,873,078|0|||
|Zheng Junsheng|Domestic Natureperson|0.36%|1,830,000|0|||
|Kuang Guowei|Domestic Natureperson|0.28%|1,453,000|0|||
|Hong Fan|Domestic Natureperson|0.26%|1,328,900|0|||
|Zhu Ye|Domestic Natureperson|0.22%|1,134,145|0|||
|Li Zengmao|Domestic Natureperson|0.22%|1,101,200|0|||
|Xiong Yan|Domestic Natureperson|0.20%|1,000,000|0|||
|Shareholding of top 10 shareholders of unrestricted shares|||||||
|Name of the shareholder||Quantity of unrestricted shares held at the end of the|||Share type||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2019
|||||
|-|-|-|-|
||reporting period|Share type|Quantity|
|Shenzhen Investment Holdings Co.,Ltd.|234,069,436|RMB Common||
||||234,069,436|
|||shares||
|Shenzhen Shenchao TechnologyInvestment Co., Ltd.|16,129,032|RMB Common||
||||16,129,032|
|||shares||
|Sun Huiming|3,224,767|Foreign shares||
|||placed in||
||||3,224,767|
|||domestic||
|||exchange||
|Li Songqiang|2,873,078|RMB Common||
||||2,873,078|
|||shares||
|Zheng Junsheng|1,830,000|RMB Common||
||||1,830,000|
|||shares||
|Kuang Guowei|1,453,000|RMB Common||
||||1,453,000|
|||shares||
|Hong Fan|1,328,900|RMB Common||
||||1,328,900|
|||shares||
|Zhu Ye|1,134,145|RMB Common||
||||1,134,145|
|||shares||
|Li Zengmao|1,101,200|RMB Common||
||||1,101,200|
|||shares||
|Xiong Yan|1,000,000|RMB Common||
||||1,000,000|
|||shares||
||Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of|||
||Shenzhen Investment Holding Co., Ltd. and a person taking concerted action. Except this, the|||
||Company did not whether there is relationship between the top ten shareholders holding|||
|Related or acting-in-concert parties||||
||non-restricted negotiable shares and between the top ten shareholders holding non-restricted|||
|among shareholders above||||
||negotiable shares 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 Companies.|||
|Explanation on shareholders|The Company Shareholder Li Songqiang holds 2,872,653 shares of the Company through|||
|participating in the margin trading|stock account with credit transaction ; The Company Shareholder Zhu Ye holds1,031,945|||
|business(if any )|shares of the Company through stock account with credit transaction .|||

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.
Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2019 2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period
□ Applicable√Not applicable
Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2019 III Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes
√ Applicable□ Not applicable
1.The ending balance of Construction in process Increased by RMB 10.2946 million and65.90% over beginning ofperiod，Mainly because of the current investment increase in the line 7 of polarizer;
2.The ending balance of Short-term loans decreased by RMB 285.5699 million and69.39% over beginning ofperiod，Mainly because that the current repayment of short-term loans leads to a decrease in the balance of short-term loans;
3.Operation revenue in current period increased by RMB371.5326 million and167.88% year onyear，Mainly because that current settlement of trade transactions leads to income increases;
4. Business costs in current period increased by RMB351.4396 million and174.49% year onyear，Mainly because that current settlement of trade transactions leads to income increases;
5. Asset impairment loss in current period increased by RMB 3.2958 million and112.40% year on year, Mainly because that withdrawing inventory falling price reserves increase;
6.Investment gains in current period decreased by RMB 12.2767 million and94.52% year on year, Mainly because that there is no trust investment in the period, and the investment income decreases accordingly;
7.Operating income in current period increased by RMB 5.9472 million and 84.19% year on year, Mainly because that current settlement of trade transactions affects profit of the period;
8. The net cash flows from operating activities in current period increased by RMB 58.8307 million and166.83% year onyear，Mainly because that the payment for goods has increased compared with last year;
9. The net cash flows from financing activities in current period decreased by RMB297.7814 million and2,991.13% year onyear，Mainly because that repayment of bank loans has increased compared with the same period;
10. The net cash flows from investment activities in current period decreased by RMB 413.4722 million and96.06% year onyear，Mainly because that the amount of funds recovered from matured finance products in the current period has decreased compared with the previous period.
II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal.
√ Applicable□ Not applicable
(1) Progress in Investment and Construction of Polarizer Industrialization Project (Line 7) for Ultra-Large-Size Television
During the reporting period, the project of Line 7 has completed the signing of construction contracts for extension machines, AGV, coated pressure sensors and wastewater treatment equipment, and the civil engineering construction of Line 7 began on April 18, 2019. As of March 31, 2019, the project of Line 7 has actually paid 354.307 million yuan for investment (157.627 million yuan for raising funds, 196.675 million yuan for self-owned funds and government funds).
(2) The termination of Shengbo Optoelectronic Company's introduction of strategic investors
The company held the Twelfth Meeting of the seventh board of directors on June 1, 2018. It considered and
Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2019 adopted the Bill on Shenzhen Shengbo Photoelectric Technology Co., Ltd. to increase capital and share to introduce strategic investors. It agreed that Shengbo Photoelectric Company, a subsidiary company, would increase capital and share by adding capital and taking the results of assets assessment as the basis, and in accordance with the regulation of state-owned assets, conduct joint property rights transactions in Shenzhen. No more than five strategic investors are publicly recruited and the final strategic investors are determined through competitive negotiations. See Bulletin No. 2018-24 of Giant Tide Information Network (http://www.cninfo.com.cn).
During the promotion of Shengbo Photoelectric Company's introduction of strategic investors, the company actively consulted with interested investors to increase capital. However, due to the changes of domestic investment environment and financial policy, the capital of financial market tends to be tense, investors'investment decisions tend to be cautious, and the cooperation conditions of intending investors, the company continued to promote Shengbo Photoelectric Company's introduction of capital expansion. Strategic investors are faced with greater uncertainty. In view of the fact that the company has not yet reached an agreement with any interested investors on specific capital increase cooperation, and taking into account the above factors, the company held the 16th meeting of the seventh board of directors on January 29, 2019, and considered and adopted the Bill on the Subsidiary Shengbo Photoelectric Technology Co., Ltd. to terminate capital increase and share increase to introduce strategic investors. The company agreed to terminate Shengboguang, the subsidiary. The introduction of strategic investor issues in electricity capital increase and stock expansion. See Bulletin No. 2019-02 and No. 2019-03 of Juchao Information Network (http://www.cninfo.com.cn) for details.
(3) Matters relating to capital increase and related transactions of Shenzhen Guanhua Printing and Dyeing Co., Ltd.
In order to smooth the equity relationship between Shenzhen Guanhua Printing and Dyeing Co., Ltd. and Guanhua Building, the company and Qiaohui Industrial Co., Ltd. signed an equity transfer agreement to transfer5.16% of the shares of Shenzhen Guanhua Printing and Dyeing Co., Ltd. and completed the equity transfer. After the transfer, the company and Qiaohui Industrial Co., Ltd. hold50.16% and49.84% of the shares of Shenzhen Guanhua Printing and Dyeing Co., Ltd. On February 28, 2019, in order to improve the investment obligations of the shareholders of Shenzhen Guanhua Printing and Dyeing Co., Ltd., the company and Qiaohui Industrial Co., Ltd. increased the capital of Shenzhen Guanhua Printing and Dyeing Co., Ltd. according to the proportion of50.16% and49.84% of the rights and interests occupied by the buildings of Guanhua Building, respectively, and the corresponding evaluation value of the buildings of Guanhua Building was 49.9351 million yuan and 49.616 million yuan. Shenzhen Guanhua Printing and Dyeing Co., Ltd. signed the Capital Increase Agreement with Qiaohui Industry Co., Ltd. and Shenzhen Guanhua Printing and Dyeing Co., Ltd. After the capital increase is completed, Shenzhen Guanhua Printing and Dyeing Co., Ltd. is an enterprise jointly controlled by the company and Qiaohui Industry Co., Ltd. See the announcement of Juchao Information Network (http://www.cninfo.com.cn) Co., Ltd. 2019-07. Up to the disclosure date of this report, Shenzhen Guanhua Printing and Dyeing Co., Ltd. has obtained the "Real Property Registration Certificate" of Guanhua Building, and the registration procedures for the change of shareholding rights and the increase of registered capital have been completed.
||||
|-|-|-|
|Announcement|Date of disclosure|Website for disclosure|
|Matters on the end of capital and shareincrease and introduction of strategicinvestors to the subsidiary SAPOPhotoelectric|||
|||http//www.cninfo.com.cn. Announcement|
||January 30,2019||
|||No.2019-03|
|Matters on the capital increase and related|March 1, 2019|http//www.cninfo.com.cn. Announcement|

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2019
|||
|-|-|
|transactions of the joint stock company,Shenzhen Guanhua Printing & Dyeing Co.,Ltd.|No.2019-07|

Progress in the implementation of share repurchase
□ Applicable√ Not applicable
Progress in the implementation of the reduction of the repurchased shares by means of centralized bidding□ Applicable√ Not applicable
III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period
√Applicable□Not applicable
||||||||
|-|-|-|-|-|-|-|
|||||Time of|||
||Commitmen|||making|Period of|Fulfill|
|Commitment||Type|Contents||||
||t maker|||commit|commitment|ment|
|||||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 the market: i. if they plan to sell the||||
||||shares through the securities exchange system in||||
||Shenzhen|Share|||||
||||the future, and the decrease of the shares they|||Under|
|Commitment on|Investment|reduction||August|Sustained and||
||||hold reaches 5% within 6 months after the first|||Fulfill|
|share reform|Holdings|commitme||4, 2006|effective||
||||decrease, they will disclose an announcement|||ment|
||Co., Ltd.|nt|||||
||||indicating the sale through the company within||||
||||two trading days before the first decrease; ii. They||||
||||shall strictly observe the “Guidelines on Transfer||||
||||of Restricted-for-sale Original Shares of Listed||||
||||Companies” and the provisions of the relevant||||
||||business principles of Shenzhen Stock Exchange.||||
|Commitment in the|||||||
|acquisition report or|||||||
|the report on equity|||||||
|changes|||||||
|Commitment made|||||||
|upon the assets|||||||
|replacement|||||||
||Shenzhen|Commitm|Shenzhen Investment Holdings Co., Ltd. signed a||||
|||||October||Under|
|Commitments made|Investment|ents on|“Letter of Commitment and Statement on||Sustained and||
|||||9,||Fulfill|
|upon issuance|Holdings|horizontal|Horizontal Competition Avoidance” when the||effective||
|||||2009||ment|
||Co., Ltd.|competitio|company issued non-public stocks in 2009.||||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2019
|||||||
|-|-|-|-|-|-|
||n, related|Pursuant to the Letter of Commitment and||||
||transaction|Statement, Shenzhen Investment Holdings Co.,||||
||and capital|Ltd. and its wholly owned subsidiary, subsidiaries||||
||occupation|under control or any other companies that have||||
|||actual control of it shall not be involved in the||||
|||business the same as or similar to those Shenzhen||||
|||Textile currently or will run in the future, or any||||
|||businesses or activities that may constitute direct||||
|||or indirect competition with Shenzhen Textile; if||||
|||the operations of Shenzhen Investment Holdings||||
|||Co., Ltd. and its wholly owned subsidiaries,||||
|||subsidiaries under control or other companies that||||
|||have actual control of it compete with Shenzhen||||
|||Textile in the same industry or contradict the||||
|||interest of the issuer in the future, Shenzhen||||
|||Investment Holdings Co., Ltd. shall urge such||||
|||companies to sell the equity, assets or business to||||
|||Shenzhen Textile or a third party; when the||||
|||horizontal competition may occur due to the||||
|||business expansion concurrently 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||||
||Commitm|||||
|||share-holding subsidiary. 2. Shenzhen Investment||||
||ents on|||||
|||Holdings and its share-holding subsidiaries or||||
|Shenzhen|horizontal|||||
|||other enterprises owned the actual control rights|||Under|
|Investment|competitio||July 14,|Sustained and||
|||can't be directly and indirectly on behalf of any|||Fulfill|
|Holdings|n, related||2012|effective||
|||person, company or unit to engage in the same or|||ment|
|Co., Ltd.|transaction|||||
|||similar business in any districts in the future by||||
||and capital|||||
|||the form of share-holding, equity participation,||||
||occupation|||||
|||joint venture, cooperation, partnership, contract,||||
|||lease, etc., and ensure not to use the controlling||||
|||shareholder's status to damage the legitimate||||
|||rights and interests of Shenzhen Textile and other||||
|||shareholders, or to gain the additional benefits. 3.||||
|||If there will be the situation of inter-industry||||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2019
||||||||
|-|-|-|-|-|-|-|
||||competition with Shenzhen Textile for Shenzhen||||
||||Investment Holdings and its share-holding||||
||||subsidiaries or other enterprises owned the actual||||
||||control rights in the future, Shenzhen Investment||||
||||Holdings will promote the related 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.||||
||||1.The company undertakes not to provide loans,||||
||||loan guarantees, and any other forms of financial||||
||||assistance to the incentive objects for obtaining||||
||Shenzhen||||||
|||Other|the restricted stocks in the incentive plan; 2. The|Novemb||Under|
|Equity incentive|Textile(Hold||||December||
|||commitme|company undertakes that there is no circumstance|er||Fulfill|
|commitment|ings) Co.,||||27,2021||
|||nt|that the stock incentive shall be prohibited as|27,2017||ment|
||Ltd.||||||
||||stipulated in the provisions of Article 7 of the||||
||||“Measures for the Management of Stock||||
||||Incentives of Listed Companies”.||||
|Other commitments|||||||
|made to minority|||||||
|shareholders|||||||
|Executed timely or|||||||
||Yes||||||
|not?|||||||
|If the commitments|||||||
|failed to complete|||||||
|the execution when|||||||
|expired, should|||||||
|specifically explain|Not applicable||||||
|the reasons of|||||||
|unfulfillment and|||||||
|the net stage of the|||||||
|working plan|||||||

IV．Prediction of Business performance for January- June 2019
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
□ Applicable√ Not applicable
Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2019 V. Investment in securities
□ Applicable√ Not applicable
No securities investment in period.
VI. Investments in derivatives
□ Applicable√ Not applicable
There is no derivative investment during the report period.
VII. The registration form of acceptance of investigation, communication and interview in the report period for future reference
□ Applicable√ Not applicable
The Period has no research, communication and written inquiry from the investors in the report period.
VIII. Outward Guarantee against the Regulations
□ Applicable√Not applicable
The Company has no external guarantee get out of the line in the Period
IX. Controlling shareholder and its related parties occupying non-business capital of the listed company□ Applicable√Not applicable
There are no controlling shareholder and its related parties occupying non-business capital of the listed company in Period
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
April 27,2019