Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Financial Report 2019
August 21, 2019
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2019 1. 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.
In RMB
||||
|-|-|-|
|Items|June 30,2019|December 31,2018|
|Current asset：|||
|Monetary fund|419,227,198.60|1,141,759,374.60|
|Settlement provision|||
|Outgoing call loan|||
|Transactional financial assets|760,000,000.00||
|Financial assets measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
|Notes receivable|31,079,249.92|886,432.06|
|Account receivable|497,053,241.57|528,454,015.59|
|Financing of receivables|||
|Prepayments|134,533,314.88|229,028,791.15|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts|||
|receivable|||
|Other account receivable|14,566,106.22|14,846,896.50|
|Including：Interest receivable|7,067,282.69|5,589,704.44|
|Dividend receivable|||
|Repurchasing of financial assets|||
||515,163,535.57|439,752,718.77|
|Inventories|||

||||
|-|-|-|
|Contract assets|||
|Assets held for sales|||
|Non-current asset due within 1 year|||
||89,787,160.89|639,797,959.30|
|Other current asset|||
|Total of current assets|2,461,409,807.65|2,994,526,187.97|
|Non-current assets：|||
|Loans and payment on other’s behalf|||
|disbursed|||
|Debt investment|||
|||45,373,784.87|
|Available for sale of financial assets|||
|Other investment on bonds|||
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|163,733,127.58|32,952,085.66|
|Other equity instruments investment|242,767,132.26||
|Other non-current financial assets|||
||116,195,160.90|167,997,941.98|
|Property investment|||
|Fixed assets|934,236,253.12|987,876,247.55|
|Construction in progress|94,993,015.59|15,621,286.64|
|Production physical assets|||
|Oil & gas assets|||
|Use right assets|||
||37,191,323.92|37,880,815.85|
|Intangible assets|||
|Development expenses|||
|Goodwill|||
||2,575,143.27|1,486,209.03|
|Long-germ expenses to be amortized|||
||5,687,946.62|6,036,198.23|
|Deferred income tax asset|||
||325,607,867.83|329,452,659.01|
|Other non-current asset|||
||1,922,986,971.09|1,624,677,228.82|
|Total of non-current assets|||
||4,384,396,778.74|4,619,203,416.79|
|Total of assets|||
|Current liabilities|||
|Short-term loans|50,837,730.76|411,522,111.40|
|Loan from Central Bank|||
|Borrowing funds|||

||||
|-|-|-|
|Transactional financial liabilities|||
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Notes payable|||
|Account payable|247,726,900.23|180,239,452.90|
|Advance receipts|25,426,190.80|120,702,951.37|
|Selling of repurchased financial assets|||
|Deposit taking and interbank|||
|deposit|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Employees’ wage payable|24,381,210.07|32,506,267.08|
|Tax payable|16,505,455.32|7,745,128.99|
|Other account payable|171,137,964.42|229,015,279.98|
|Including：Interest payable|435,029.66|39,044,044.39|
|Dividend payable|||
|Fees and commissions payable|||
|Reinsurance fee payable|||
|Contract Liabilities|||
|Liabilities held for sales|||
|Non-current liability due within 1|||
|||40,000,000.00|
|year|||
|Other current liability|||
|Total of current liability|536,015,451.60|1,021,731,191.72|
|Non-current liabilities：|||
|Reserve fund for insurance|||
|contracts|||
|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|129,416,766.89|137,991,698.33|
|Deferred income tax liability|66,021,500.49||
|Other non-current liabilities|||
|Total non-current liabilities|195,438,267.38|137,991,698.33|
|Total of liability|731,453,718.98|1,159,722,890.05|
|Owners’ equity|||
|Share capital|511,274,149.00|511,274,149.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|1,865,716,983.63|1,865,716,983.63|
|Less：Shares in stock|27,230,679.00|27,230,679.00|
|Other comprehensive income|200,771,588.45|1,339,208.41|
|Special reserve|||
|Surplus reserves|80,004,803.23|80,004,803.23|
|Common risk provision|||
|Retained profit|-49,942,185.43|-57,774,473.41|
|Total of owner’s equity belong to the|||
||2,580,594,659.88|2,373,329,991.86|
|parent company|||
|Minority shareholders’ equity|1,072,348,399.88|1,086,150,534.88|
|Total of owners’ equity|3,652,943,059.76|3,459,480,526.74|
|Total of liabilities and owners’ equity|4,384,396,778.74|4,619,203,416.79|

 Legal Representative: Zhu Jun
Person-in-charge of the accountingwork：Zhu Meizhu
Person-in -charge of the accountingorgan：Mu Linying
2. Balance sheet of Parent Company
I n RMB
||||
|-|-|-|
|Items|June 30,2019|December 31,2018|
|Current asset：|||

||||
|-|-|-|
|Monetary fund|29,536,528.73|85,416,567.74|
|Transactional financial assets|560,000,000.00||
|Financial assets measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
|Notes receivable|||
|Account receivable|564,306.46|541,948.21|
|Financing of receivables|||
|Prepayments|79,766.67|17,436.00|
|Other account receivable|15,141,009.58|13,856,382.02|
|Including：Interest receivable|6,737,221.93|4,974,799.47|
|Dividend receivable|||
|Inventories|||
|Contract assets|||
|Assets held for sales|||
|Non-current asset due within 1|||
|year|||
|||500,000,000.00|
|Other current asset|||
||605,321,611.44|599,832,333.97|
|Total of current assets|||
|Non-current assets：|||
|Debt investment|||
|||15,373,784.87|
|Available for sale of financial assets|||
|Other investment on bonds|||
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|2,115,956,894.19|1,997,175,852.27|
|Other equity instruments investment|200,802,141.09||
|Other non-current financial assets|||
||109,525,380.61|161,053,628.71|
|Property investment|||
|Fixed assets|25,697,052.23|26,565,399.91|
|Construction in progress|||
|Production physical assets|||
|Oil & gas assets|||
|Use right assets|||

||||
|-|-|-|
||828,074.07|1,012,374.75|
|Intangible assets|||
|Development expenses|||
|Goodwill|||
|Long-germ expenses to be amortized|||
||5,337,909.60|5,818,069.48|
|Deferred income tax asset|||
|Other non-current asset|||
||2,458,147,451.79|2,206,999,109.99|
|Total of non-current assets|||
||3,063,469,063.23|2,806,831,443.96|
|Total of assets|||
|Current liabilities|||
|Short-term loans|||
|Transactional financial liabilities|||
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Notes payable|||
|Account payable|411,743.57|411,743.57|
|Advance receipts|639,024.58|639,024.58|
|Contract Liabilities|||
|Employees’ wage payable|6,742,670.44|9,760,306.51|
|Tax payable|13,229,303.02|5,494,627.33|
|Other account payable|115,538,060.57|141,746,352.67|
|Including：Interest payable|||
|Dividend payable|||
|Liabilities held for sales|||
|Non-current liability due within 1|||
|year|||
|Other current liability|||
|Total of current liability|136,560,802.18|158,052,054.66|
|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|650,000.00|700,000.00|
|Deferred income tax liability|63,030,252.70||
|Other non-current liabilities|||
|Total non-current liabilities|63,680,252.70|700,000.00|
|Total of liability|200,241,054.88|158,752,054.66|
|Owners’ equity|||
|Share capital|511,274,149.00|511,274,149.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|1,599,025,454.96|1,599,025,454.96|
|Less：Shares in stock|27,230,679.00|27,230,679.00|
|Other comprehensive income|191,797,845.07|1,339,208.41|
|Special reserve|||
|Surplus reserves|80,004,803.23|80,004,803.23|
|Retained profit|508,356,435.09|483,666,452.70|
|Total of owners’ equity|2,863,228,008.35|2,648,079,389.30|
|Total of liabilities and owners’ equity|3,063,469,063.23|2,806,831,443.96|

 3.Consolidated Income Statement
In RMB
||||
|-|-|-|
|Items|Semi-annual of 2019|Semi-annual of 2018|
|I. Income from the key business|1,008,863,295.50|474,262,408.57|
|Incl：Business income|1,008,863,295.50|474,262,408.57|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|1,013,198,391.97|481,289,557.87|
|Incl：Business cost|940,587,510.73|415,092,958.33|
|Interest expense|||

||||
|-|-|-|
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Insurance policy dividend paid|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|3,897,496.78|3,840,556.12|
|Sales expense|7,369,804.52|3,780,411.53|
|Administrative expense|42,901,879.68|41,239,119.73|
|R & D expense|19,172,388.20|21,189,099.82|
|Financial expenses|-730,687.94|-3,852,587.66|
|Including：Interest expense|3,783,883.97|3,428,083.94|
|Interest income|-15,744,104.66|-13,277,267.58|
|Add：Other income|11,035,139.06|5,812,167.76|
|Investment gain（“-”for loss）|-206,057.55|28,552,710.15|
|Including: investment gains from|||
||-1,114,057.55|616,945.67|
|affiliates|||
|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|2,333,764.98||
|Impairment loss of assets|-21,259,451.35|-17,394,332.04|
|Assets disposal income|12,236,686.25||
|III. Operational profit（“-”for loss）|-195,015.08|9,943,396.57|
|Add ：Non-operational income|4,247,261.65|89,905.17|
|Less: Non-operating expense|6,092.62|153,338.08|
|IV. Total profit(“-”for loss)|4,046,153.95|9,879,963.66|
|Less：Income tax expenses|9,773,007.83|5,321,864.53|
|V. Net profit|-5,726,853.88|4,558,099.13|
|(I) Classification by business|||
|continuity|||
|1.Net continuing operating profit|-5,726,853.88|4,558,099.13|
|2.Termination of operating net profit|||

||||
|-|-|-|
|(II) Classification by ownership|||
|1.Net profit attributable to the owners of|||
||7,832,287.98|9,646,976.15|
|parent company|||
|2.Minority shareholders’ equity|-13,559,141.86|-5,088,877.02|
|VI. Net after-tax of other comprehensive|||
||52,056,251.94|-389,767.67|
|income|||
|Net of profit of other comprehensive inco|||
||52,056,251.94|-389,767.67|
|me attributable to owners of the parent co|||
|mpany.|||
|（I）Other comprehensive income items|||
|that will not be reclassified into|||
||51,249,010.40||
|gains/losses in the subsequent accounting|||
|period|||
|1.Re-measurement of defined benefit pla|||
|ns of changes in net debt or net assets|||
|2.Other comprehensive income under the|||
|equity method investee can not be reclass|||
|ified into profit or loss.|||
|3. Changes in the fair value of|||
||51,249,010.40||
|investments in other equity instruments|||
|4. Changes in the fair value of the|||
|company’s credit risks|||
|5.Other|||
|（II）|||
||807,241.54|-389,767.67|
|Other comprehensive income that will be|||
|reclassified into profit or loss.|||
|1.Other comprehensive income under the|||
|equity method investee can be reclassifie|||
|d into profit or loss.|||
|2. Changes in the fair value of|||
|investments in other debt obligations|||
|3.Gains and losses from changes in fair v||-510,116.82|
|alue available for sale financial assets|||
|4. Other comprehensive income arising|||
|from the reclassification of financial|||
|assets|||

||||
|-|-|-|
|5.Held-to-maturity investments reclassifi|||
|ed to gains and losses of available for sal|||
|e financial assets|||
|6. Allowance for credit impairments in|||
|investments in other debt obligations|||
|7. Reserve for cash flow hedges|||
|8.|||
|Translation differences in currency financ|807,241.54|120,349.15|
|ial statements|||
|9.Other|||
|Net of profit of other comprehensive inco|||
|me attributable to Minority shareholders’|||
|equity|||
|VII. Total comprehensive income|46,329,398.06|4,168,331.46|
|Total comprehensive income attributable|||
||59,888,539.92|9,257,208.48|
|to the owner of the parent company|||
|Total comprehensive income|||
||-13,559,141.86|-5,088,877.02|
|attributable minority shareholders|||
|VIII. Earnings per share|||
|（I）Basic earnings per share|0.0153|0.0190|
|(II)Diluted earnings per share|0.0153|0.0190|

 Legal Representative: Zhu Jun
Person-in-charge of the accountingwork：Zhu Meizhu
Person-in -charge of the accountingorgan：Mu Linying
4. Income statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Semi-annual of 2019|Semi-annual of 2018|
|I. Income from the key business|34,593,508.28|33,343,899.42|
|Incl：Business cost|5,929,735.08|6,934,259.58|
|Business tax and surcharge|1,412,933.65|1,458,413.46|
|Sales expense|||
|Administrative expense|16,206,040.37|14,436,569.89|
|R & D expense|||

||||
|-|-|-|
|Financial expenses|-10,132,086.89|-7,833,271.26|
|Including：Interest expenses|||
|Interest income|-9,924,921.96|-7,845,669.84|
|Add：Other income|50,000.00|50,000.00|
|Investment gain（“-”for loss）|-206,057.55|1,191,719.82|
|Including: investment gains from|||
||-1,114,057.55|616,945.67|
|affiliates|||
|Financial assets measured at|||
|amortized cost cease to be recognized|||
|as income|||
|Net exposure hedging income|||
|Changing income of fair value|||
|Credit impairment loss|23,970.35||
|Impairment loss of assets||-365,826.86|
|Assets disposal income|12,301,144.92||
|II. Operational profit（“-”for loss）|33,345,943.79|19,223,820.71|
|Add ：Non-operational income||79,604.02|
|Less：Non -operational expenses|||
|III. Total profit(“-”for loss)|33,345,943.79|19,303,424.73|
|Less：Income tax expenses|8,655,961.40|4,209,259.73|
|IV. Net profit|24,689,982.39|15,094,165.00|
|1.Net continuing operating profit|24,689,982.39|15,094,165.00|
|2.Termination of operating net profit|||
|V. Net after-tax of other comprehensive|||
||52,056,251.94|-389,767.67|
|income|||
|（I）Other comprehensive income items|||
|that will not be reclassified into|||
||51,249,010.40||
|gains/losses in the subsequent|||
|accounting period|||
|1.Re-measurement of defined benefit pl|||
|ans of changes in net debt or net assets|||
|2.Other comprehensive income under th|||
|e equity method investee can not be recl|||
|assified into profit or loss.|||
|3. Changes in the fair value of|||
||51,249,010.40||
|investments in other equity instruments|||
|4. Changes in the fair value of the|||

||||
|-|-|-|
|company’s credit risks|||
|5.Other|||
|（II）|||
||807,241.54|-389,767.67|
|Other comprehensive income that will b|||
|e reclassified into profit or loss.|||
|1.Other comprehensive income under th|||
|e equity method investee can be reclassi|||
|fied into profit or loss.|||
|2. Changes in the fair value of|||
|investments in other debt obligations|||
|3.|||
|Gains and losses from changes in fair v||-510,116.82|
|alue available for sale financial assets|||
|4. Other comprehensive income|||
|arising from the reclassification of|||
|financial assets|||
|5.Held-to-maturity investments reclassif|||
|ied to gains and losses of available for s|||
|ale financial assets|||
|6. Allowance for credit impairments|||
|in investments in other debt obligations|||
|7. Reserve for cash flow hedges|||
|8.|||
|Translation differences in currency fina|807,241.54|120,349.15|
|ncial statements|||
|9.Other|||
|VI. Total comprehensive income|76,746,234.33|14,704,397.33|
|VII. Earnings per share|||
|（I）Basic earnings per share|||
|(II)Diluted earnings per share|||

5. Consolidated Cash flow statement
In RMB
||||
|-|-|-|
|Items|Semi-annual of 2019|Semi-annual of 2018|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or|||
||999,946,160.35|510,486,141.19|
|rending of services|||

||||
|-|-|-|
|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|9,977,371.04|24,120,883.81|
|Other cash received from business|||
||29,115,913.92|26,160,799.70|
|operation|||
|Sub-total of cash inflow|1,039,039,445.31|560,767,824.70|
|Cash paid for purchasing of|||
||884,541,697.70|560,096,998.00|
|merchandise and services|||
|Net increase of client trade and advance|||
|Net increase of savings in central bank|||
|and brother company|||
|Cash paid for original contract claim|||
|Net increase in financial assets held|||
|for trading purposes|||
|Net increase for Outgoing call loan|||
|Cash paid for interest, processing fee|||
|and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|82,695,671.17|76,371,093.88|
|Taxes paid|15,981,651.90|27,570,325.99|
|Other cash paid for business activities|31,994,062.19|25,580,296.27|
|Sub-total of cash outflow from business|1,015,213,082.96|689,618,714.14|

||||
|-|-|-|
|activities|||
|Net cash generated from /used in|||
||23,826,362.35|-128,850,889.44|
|operating activities|||
|II. Cash flow generated by investing|||
|Cash received from investment|||
|retrieving|||
|Cash received as investment gains|2,513,730.75|1,673,214.15|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|6,200.00|26,597.81|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||
|Other investment-related cash received|620,264,450.94|1,903,828,974.66|
|Sub-total of cash inflow due to|||
||622,784,381.69|1,905,528,786.62|
|investment activities|||
|Cash paid for construction of fixed|||
|assets, intangible assets and other|88,061,134.28|156,659,802.66|
|long-term assets|||
|Cash paid as investment|||
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and|||
||0.00||
|other operational units|||
|Other cash paid for investment|||
||985,495,790.87|1,830,500,000.00|
|activities|||
|Sub-total of cash outflow due to|||
||1,073,556,925.15|1,987,159,802.66|
|investment activities|||
|Net cash flow generated by investment|-450,772,543.46|-81,631,016.04|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Including: Cash received as investment|||
|from minor shareholders|||
|Cash received as loans|81,566,681.47|275,474,786.49|
|Cash received from bond placing|||
|Other financing –related cash received|||
|Sub-total of cash inflow from financing|||
||81,566,681.47|275,474,786.49|
|activities|||
|Cash to repay debts|479,551,062.11|209,562,972.59|

||||
|-|-|-|
|Cash paid as dividend, profit, or|||
||42,197,297.00|1,439,654.15|
|interests|||
|Including: Dividend and profit paid by|||
|subsidiaries to minor shareholders|||
|Other cash paid for financing activities|11,448,442.40||
|Sub-total of cash outflow due to|||
||533,196,801.51|211,002,626.74|
|financing activities|||
|Net cash flow generated by financing|-451,630,120.04|64,472,159.75|
|IV. Influence of exchange rate|||
||548,334.28|-494,599.74|
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||-878,027,966.87|-146,504,345.47|
|equivalents|||
|Add: balance of cash and cash|||
||1,133,574,235.22|1,161,240,139.33|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||255,546,268.35|1,014,735,793.86|
|equivalents at the end of term|||

6. Cash flow statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Semi-annual of 2019|Semi-annual of 2018|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or|||
||35,598,741.25|34,341,479.70|
|rending of services|||
|Tax returned|||
|Other cash received from business|||
||4,798,306.72|6,186,752.60|
|operation|||
|Sub-total of cash inflow|40,397,047.97|40,528,232.30|
|Cash paid for purchasing of|||
||1,795,145.94|2,734,504.18|
|merchandise and services|||
|Cash paid to staffs or paid for staffs|11,643,989.59|10,002,845.66|
|Taxes paid|10,101,259.32|7,067,139.21|
|Other cash paid for business activities|24,376,996.84|12,230,536.71|
|Sub-total of cash outflow from business|||
||47,917,391.69|32,035,025.76|
|activities|||
|Net cash generated from /used in|||
||-7,520,343.72|8,493,206.54|
|operating activities|||
|II. Cash flow generated by investing|||

||||
|-|-|-|
|Cash received from investment|||
||12,000,000.00||
|retrieving|||
|Cash received as investment gains|2,513,730.75|1,673,214.15|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other||24,597.81|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||
|Other investment-related cash received|8,629,426.36|763,589.50|
|Sub-total of cash inflow due to|||
||23,143,157.11|2,461,401.46|
|investment activities|||
|Cash paid for construction of fixed|||
|assets, intangible assets and other|54,410.00|1,545,005.70|
|long-term assets|||
|Cash paid as investment|||
|Net cash received from subsidiaries and|||
|other operational units|||
|Other cash paid for investment|||
||60,000,000.00|40,000,000.00|
|activities|||
|Sub-total of cash outflow due to|||
||60,054,410.00|41,545,005.70|
|investment activities|||
|Net cash flow generated by investment|-36,911,252.89|-39,083,604.24|
|III. Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|||
|Cash received from bond placing|||
|Other financing –related ash received|||
|Sub-total of cash inflow from|||
|financing activities|||
|Cash to repay debts|||
|Cash paid as dividend, profit, or|||
|interests|||
|Other cash paid for financing activities|11,448,442.40||
|Sub-total of cash outflow due to|||
||11,448,442.40||
|financing activities|||
|Net cash flow generated by financing|-11,448,442.40||
|IV. Influence of exchange rate|||

||||
|-|-|-|
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||-55,880,039.01|-30,590,397.70|
|equivalents|||
|Add: balance of cash and cash|||
||85,416,567.74|413,700,327.95|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||29,536,528.73|383,109,930.25|
|equivalents at the end of term|||

7. Consolidated Statement on Change inOwners’ Equity
Amount in this period
In RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Semi-annual of 2019|||||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||||||
|||Other Equity|||||Other||||||||Total|
|||instrument||||||||||||Minor||
|Items|share||||Capital|Less:|Compr|Specia|Surplu|Comm|Retain|||shareh|of|
||Capit|prefe|Susta||reserve|Shares|ehensi|lized|s|on risk|ed|Other|Subtot|olders’|owners|
||a|rred|inabl|Other|s|in|ve|reserve|reserve|provisi|profit||al|equity|’|
|||stock|e|||stock|Incom||s|on|||||equity|
||||debt||||e|||||||||
||511,2||||1,865,|27,230|||80,004||-57,77||2,373,|1,086,|3,459,|
|I.Balance at the|||||||1,339,|||||||||
||74,14||||716,98|,679.0|||,803.2||4,473.||329,99|150,53|480,52|
|end of last year|||||||208.41|||||||||
||9.00||||3.63|0|||3||41||1.86|4.88|6.74|
|Add: Change of|||||||147,37||||||147,37||147,37|
|accounting|||||||6,128.||||||6,128.||6,128.|
|policy|||||||10||||||10||10|
|Correcting of||||||||||||||||
|previous errors||||||||||||||||
|Merger of||||||||||||||||
|entities under||||||||||||||||
|common control||||||||||||||||
|Other||||||||||||||||
|II.Balance at the|511,2||||1,865,|27,230|148,71||80,004||-57,77||2,520,|1,086,|3,606,|
|beginning of|74,14||||716,98|,679.0|5,336.||,803.2||4,473.||706,11|150,53|856,65|
|current year|9.00||||3.63|0|51||3||41||9.96|4.88|4.84|
||||||||52,056||||||59,888|-13,80|46,086|
|III.Changed in|||||||||||7,832,|||||
||||||||,251.9||||||,539.9|2,135.|,404.9|
|the current year|||||||||||287.98|||||
||||||||4||||||2|00|2|
|（1）Total|||||||52,056||||7,832,||59,888|-13,80|46,086|

|||||||
|-|-|-|-|-|-|
|comprehensive|,251.9|287.98|,539.9|2,135.|,404.9|
|income|4||2|00|2|
|（II）Investment||||||
|or decreasing of||||||
|capital by||||||
|owners||||||
|1．Ordinary Sh||||||
|ares invested by||||||
|shareholders||||||
|2．Holders of o||||||
|ther equity instr||||||
|uments invested||||||
|capital||||||
|3．Amount of||||||
|shares paid and||||||
|accounted as||||||
|owners’ equity||||||
|4．Other||||||
|（III）Profit||||||
|allotment||||||
|1.Providing of||||||
|surplus reserves||||||
|2.Providing of||||||
|common risk||||||
|provisions||||||
|3．Allotment to||||||
|the owners (or||||||
|shareholders)||||||
|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||||||||||
|comprehensive||||||||||
|income||||||||||
|carry-over||||||||||
|retained||||||||||
|earnings||||||||||
|6．Other||||||||||
|(V). Special||||||||||
|reserves||||||||||
|1. Provided this||||||||||
|year||||||||||
|2．Used this||||||||||
|term||||||||||
|（VI）Other||||||||||
|IV. Balance at|511,2|1,865,|27,230|200,77|80,004|-49,94|2,580,|1,072,|3,652,943,059.76|
|the end of this|74,14|716,98|,679.0|1,588.|,803.2|2,185.|594,65|348,39||
|term|9.00|3.63|0|45|3|43|9.88|9.88||

 Amount in last year
In RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Semi-annual of 2018|||||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||||||
|||Other Equityinstrument|||||Other||||Retain|||||
|||||||||||||||Minor||
|Items|share||Susta||Capital|Less:|Compr|Specia|Surplu|Comm||||shareho|Total of|
||Capit|prefe|||reserve|Shares|ehensi|lized|s|on risk|ed|Other|Subtot|lders’|owners’|
||a|rred|inabl|Other|s|in|ve|rreserve|eserve|provisi|profit||al|equity|equity|
|||stock|edebt|||stock|Income||s|on||||||
||511,274,14||||1,866,|27,230,679.0|||77,477,042.1||-32,266,087.||2,397,|1,125,5|3,523,0|
|I.Balance at the|||||||2,218,|||||||||
||||||001,47||||||||474,60|44,525.|19,129.|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|end of last year|9.00|5.17|0|703.87|9|44|3.79|79|58|
|Add: Change of||||||||||
|accounting||||||||||
|policy||||||||||
|Correcting of||||||||||
|previous errors||||||||||
|Merger of||||||||||
|entities under||||||||||
|common||||||||||
|control||||||||||
|Other||||||||||
|II.Balance at|511,2|1,866,|27,230||77,477|-32,26|2,397,|1,125,5|3,523,0|
|||||2,218,||||||
|the beginning|74,14|001,47|,679.0||,042.1|6,087.|474,60|44,525.|19,129.|
|||||703.87||||||
|of current year|9.00|5.17|0||9|44|3.79|79|58|
||||||||12,708|||
|III.Changed in||3,451,||-389,7||9,646,||-4,263,|8,445,4|
||||||||,402.4|||
|the current year||194.00||67.67||976.15||001.02|01.46|
||||||||8|||
|（1）Total||||||||||
|||||-389,7||9,646,|9,257,|-4,263,|4,994,2|
|comprehensive||||||||||
|||||67.67||976.15|208.48|001.02|07.46|
|income||||||||||
|（II）||||||||||
|Investment or||||||||||
|||3,451,|||||3,451,||3,451,1|
|decreasing of||||||||||
|||194.00|||||194.00||94.00|
|capital by||||||||||
|owners||||||||||
|1．Ordinary Sh||||||||||
|ares invested b||||||||||
|y shareholders||||||||||
|2．Holders of||||||||||
|other equity ins||||||||||
|truments invest||||||||||
|ed capital||||||||||
|3．Amount of||||||||||
|shares paid and||3,451,|||||3,451,||3,451,1|
|accounted as||194.00|||||194.00||94.00|
|owners’ equity||||||||||
|4．Other||||||||||
|（III）Profit||||||||||
|allotment||||||||||
|1.Providing of||||||||||

||
|-|
|surplus reserves|
|2.Providing of|
|common risk|
|provisions|
|3．Allotment to|
|the owners (or|
|shareholders)|
|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|
|comprehensive|
|income|
|carry-over|
|retained|
|earnings|
|6．Other|
|(V). Special|
|reserves|
|1. Provided this|
|year|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|2．Used thisterm|||||||||||
|（VI）Other|||||||||||
|IV. Balance at|511,2|1,869,|27,230||77,477||-22,61|2,410,|1,121,2|3,531,4|
|||||1,828,|||||||
|the end of this|74,14|452,66|,679.0||,042.1|9|,111.2|183,00|81,524.|64,531.|
|||||936.20|||||||
|term|9.00|9.17|0||9||9|6.27|77|04|

 8. Statement of change inowner’s Equity of the Parent Company
Amount in this period
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Semi-annual of 2019||||||||||||
|||Other Equity instrument|||||||||||
||||||||Other||||||
|||||||Less:||Specializ||||Total of|
|Items|Share|preferr|||Capital||Compreh||Surplus|Retaine|||
||||Sustain|||Shares in||ed|||Other|owners’|
||capital|ed||Other|reserves||ensive||reserves|d profit|||
||||able|||stock||reserve||||equity|
|||stock|||||Income||||||
||||debt||||||||||
||511,27|||||||||483,66|||
|I.Balance at the|||||1,599,02|27,230,6|1,339,20||80,004,8|||2,648,079,|
||4,149.0|||||||||6,452.7|||
|end of last year|||||5,454.96|79.00|8.41||03.23|||389.30|
||0|||||||||0|||
|Add: Change of|||||||||||||
||||||||138,402,|||||138,402,3|
|accounting|||||||||||||
||||||||384.72|||||84.72|
|policy|||||||||||||
|Correcting of|||||||||||||
|previous errors|||||||||||||
|Other|||||||||||||
|II.Balance at the|511,27|||||||||483,66|||
||||||1,599,02|27,230,6|139,741,||80,004,8|||2,786,481,|
|beginning of|4,149.0|||||||||6,452.7|||
||||||5,454.96|79.00|593.13||03.23|||774.02|
|current year|0|||||||||0|||
|III.Changed in|||||||52,056,2|||24,689,||76,746,23|
|the current year|||||||51.94|||982.39||4.33|
|（I）Total|||||||||||||
||||||||52,056,2|||24,689,||76,746,23|
|comprehensive|||||||||||||
||||||||51.94|||982.39||4.33|
|income|||||||||||||
|(II) Investment|||||||||||||
|or decreasing of|||||||||||||
|capital by|||||||||||||
|owners|||||||||||||
|1．Ordinary Sha|||||||||||||
|res invested by s|||||||||||||

||
|-|
|hareholders|
|2．Holders of ot|
|her equity instru|
|ments invested c|
|apital|
|3.Amount of|
|shares paid and|
|accounted as|
|owners’ equity|
|4．Other|
|（III）Profit|
|allotment|
|1.Providing of|
|surplus reserves|
|2．Allotment to|
|the owners (or|
|shareholders)|
|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|

|||||||||
|-|-|-|-|-|-|-|-|
|comprehensive||||||||
|income||||||||
|carry-over||||||||
|retained earnings||||||||
|6．Other||||||||
|(V) Special||||||||
|reserves||||||||
|1. Provided this||||||||
|year||||||||
|2．Used this term||||||||
|（VI）Other||||||||
|IV. Balance at|511,27|||||508,35|2,863,228,008.35|
|||1,599,02|27,230,6|191,797,|80,004,8|||
|the end of this|4,149.0|||||6,435.0||
|||5,454.96|79.00|845.07|03.23|||
|term|0|||||9||

Amount in last year
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Semi-annual of 2018||||||||||||
|||Other Equity|||||||||||
|||instrument|||||Other||||||
|||||||Less:||Specializ||||Total of|
|Items|ShareCapital||||Capital||Compre||Surplus|Retained|||
|||preferr||||Shares||ed|||Other|owners’|
||||Sustai||reserves||hensive||reserves|profit|||
|||ed||Other||in stock||reserve||||equity|
||||nable||||Income||||||
|||stock|||||||||||
||||debt||||||||||
||511,27||||1,599,3||||||||
|I.Balance at the||||||27,230,6|2,218,7||77,477,|460,916,6||2,624,037,6|
||4,149.||||81,854.||||||||
|end of last year||||||79.00|03.87||042.19|03.36||74.38|
||00||||96||||||||
|Add: Change of|||||||||||||
|accounting|||||||||||||
|policy|||||||||||||
|Correcting of|||||||||||||
|previous errors|||||||||||||
|Other|||||||||||||
|II.Balance at|511,27||||1,599,3||||||||
|||||||27,230,6|2,218,7||77,477,|460,916,6||2,624,037,6|
|the beginning|4,149.||||81,854.||||||||
|||||||79.00|03.87||042.19|03.36||74.38|
|of current year|00||||96||||||||
|III.Changed in|||||4,277,0||-389,76|||15,094,16||18,981,467.|
|the current year|||||70.00||7.67|||5.00||33|
|（I）Total|||||||-389,76|||15,094,16||14,704,397.|

||||||
|-|-|-|-|-|
|comprehensive||7.67|5.00|33|
|income|||||
|(II) Investment|||||
|or decreasing of|4,277,0|||4,277,070.0|
|capital by|70.00|||0|
|owners|||||
|1．Ordinary Sh|||||
|ares invested by|||||
|shareholders|||||
|2．Holders of o|||||
|ther equity instr|||||
|uments invested|||||
|capital|||||
|3.Amount of|||||
|shares paid and|4,277,0|||4,277,070.0|
|accounted as|70.00|||0|
|owners’ equity|||||
|4．Other|||||
|（III）Profit|||||
|allotment|||||
|1.Providing of|||||
|surplus reserves|||||
|2．Allotment to|||||
|the owners (or|||||
|shareholders)|||||
|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||||||||
|comprehensive||||||||
|income||||||||
|carry-over||||||||
|retained||||||||
|earnings||||||||
|6．Other||||||||
|(V) Special||||||||
|reserves||||||||
|1. Provided this||||||||
|year||||||||
|2．Used this||||||||
|term||||||||
|（VI）Other||||||||
|IV. Balance at|511,27|1,603,6||||||
||||27,230,6|1,828,9|77,477,|476,010,7|2,643,019,1|
|the end of this|4,149.|58,924.||||||
||||79.00|36.20|042.19|68.36|41.71|
|term|00|96||||||

III. Basic Information of the Company
1. Enterprise registration address, organization mode and headquarter address.
The company was previously the Shenzhen Textile Industry Company, on April 13, 1994, approved by the Letter(1994)No.15 issued by Shenzhen Municipal People's Government, the Company was restructured and named as Shenzhen Textile (Holdings) Co., Ltd. In the same year, approved by the (1994) No.19 file of Shenzhenshi, the shares of the company were listed in Shenzhen Stock Exchange. The company now holds a unified social credit code for the 91440300192173749Y business license,Registration address and headquarter address are 6/F,Shenfang Building, No.3 Huaqiang Road. North, Futian District, Shenzhen.
2.Enterprise’s business nature and major business operation.
At present, the Company is mainly engaged in high-tech industry focusing onR&D, production and
marketing of polarizers for liquid crystal display, management of properties in bustling business
districts of Shenzhen and reserved high-class textile and garment business.
3. Approval of the financial statements reported
The financial statements have been authorized for issuance of the 20th meeting of the Seventh Board of Directors of the Group on August 19,2019.
As of the end of the reporting period, there are 7 subsidiaries companies included in the consolidated financial statements:Shenzhen Shengbo Optoelectronic Technology Co., Ltd., Shenzhen Lisi Industrial Development Co., Ltd.,Shenzhen Huaqiang Hotel, Shenzhen Shenfang Property Management Co., Ltd. Shenzhen Beaufity Garments Co., Ltd. ,Shzhen Shenfang Import& Export Co., Ltd., and Shengtou (Hongkong) Co., Ltd.
The scope of consolidated financial statements this period did not change.
IV. Basis for the preparation of financial statements
(1) Basis for the preparation
Thiscompany’s financial statements is based on going-concern assumption and worked out according to actual transactions and matters, Accounting Standard for Business Enterprises--Basic Standard(issued by No.33 Decree of the Ministry of Finance and revised by No.76 Decree of the Ministry of Finance) issued by the Ministry of Finance, 42 special accounting standards enacted and revised on and after Feb 15, 2006, guideline for application of accounting standard for business enterprises, ASBE interpretations and other relevant regulations(hereinafter collectively referred to as “Accounting Standard for Business Enterprises”) and No.15 of Compilation Rules for Information Disclosure by Companies Offering Securities to the Public-- General Provisions of Financial Reports (revised in 2014) issued by China Securities Regulatory Commission.
(2) Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will cause material doubts as to the continuation capability of the Company.
V. Important accounting policies and estimations
Specific accounting policies and accounting estimates tips:
According to the actual production and operation characteristics, the company has formulated specific accounting policies and accounting estimates for such transactions or events as provision for bad debts of receivables, depreciation of fixed assets, amortization of intangible assets, and revenue recognition.
1. Statement on complying with corporate accounting standards
The financial statements prepared by the Company comply with the requirements of corporate accounting standards. They truly and completely reflect the financial situations, operating results, equity changes and cash flow, and other relevant information of the company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as the fiscal year.
3. Operating cycle
Normal business cycle is realized by the Company in cash or cash equivalents from the purchase of assets for processing until. Less than 1 year is for the normal operating cycle in the company.
With regard to less than 1 year for the normal operating cycle, the assets realized or the liabilities repaid at maturity within one year as of the balance sheet date shall be classified into the current assets or the current liabilities.
4. Accounting standard money
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprise merger under samecontrol：
For a business combination involving enterprises under common control, the party that, on the combination date, obtains control of another enterprise participating in the combination is the absorbing party, while that other enterprise participating in the combination is a party being absorbed. Combination date is the date on which the absorbing party effectively obtains control of the party being absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being combined at the combination date. The difference between the carrying amount of the net assets obtained and the carrying amount of consideration paid for the combination (or the total face value of shares issued) is adjusted to the capital premium in the capital reserve. If the balance of the capital premium is insufficient, any excess is adjusted to retained earnings.
The cost of a combination incurred by the absorbing party includes any costs directly attributable to the combination shall be recognized as an expense through profit or loss for the current period when incurred.
Accounting Treatment of the Consolidated Financial Statements:
The long-term equity investment held by the combining party before the combination will change if the relevant profit and loss, other comprehensive income and other owner equity are confirmed between the ultimate control date and the combining date for the combining party and the combined party on the acquirement date, and shall respectively offset the initial retained incomes or the profits and losses of the current period during the comparative statement.
(2) Business combination involving entities not under common control
A business combination involving enterprises not under common control is a business combination in which all of the combining enterprises are not ultimately controlled by the same party or parties both before and after the business combination. For a business combination not involving enterprises under common control, the party that, on the acquisition date, obtains control of another enterprise
participating in the combination is the acquirer, while that other enterprise participating in the combination is the acquiree. Acquisition date is the date on which the acquirer effectively obtains control of the acquiree.
The difference of the merger cost minus the fair value shares of identifiable net assets obtained by the acquiree during the merger on the acquisition date, is recognized as the business reputation. While the merger cost is less than the fair value shares of identifiable net assets obtained by the acquiree during the merger, all the measurement on the identifiable assets, the liabilities, the fair value of liabilities and the merger cost obtained by the acquiree should firstly be rechecked, and the difference shall be recorded into the current profits and costs if the merger cost is still less than the fair value shares of identifiable net assets obtained by the acquiree during the merger after rechecking.
Where the temporary difference obtained by the acquirer was not recognized due to inconformity with the conditions applied for recognition of deferred income tax, if, within the 12 months after acquisition, additional information can prove the existence of related information at acquisition date and the expected economic benefits on the acquisition date arose from deductible temporary difference by the acquiree can be achieved, relevant income tax assets can be recognized, and goodwill offset. If the goodwill is not sufficient, the difference shall be recognized as profit of the current period.
For a business combination not involving enterprise under common control, which achieved in stages that involves multiple exchange transactions, according to “The notice of the Ministry of Finance on the issuance of Accounting Standards Interpretation No. 5” (CaiKuai[2012] No. 19) and Article51 of “Accounting Standards for Business Enterprises No.33 - Consolidated Financial Statements” on the “package deal” criterion, to judge the multiple exchange transitions whether they are the"package deal". If it belong to the “package deal” in reference to the preceding paragraphs of this section and “long-term investment” accounting treatment, if it does not belong to the “package deal” to distinguish the individual financial statements and the consolidated financial statements related to the accounting treatment:
In the individual financial statements, the total value of the book value of the acquiree's equity investment before the acquisition date and the cost of new investment at the acquisition date, as the initial cost of the investment, the acquiree's equity investment before the acquisition date involved in other comprehensive income, in the disposal of the investment will be in other comprehensive income associated with the use of infrastructure and the acquiree directly related to the disposal of assets or liabilities of the same accounting treatment (that is, except in accordance with the equity method of accounting in the defined benefit plan acquiree is remeasured net changes in net assets or liabilities other than in the corresponding share of the lead, and the rest into the current investment income).
In the combination financial statements, the equity interest in the acquiree previously held before the acquisition date re-assessed at the fair value at the acquisition date, with any difference between its fair value and its carrying amount is recorded as investment income.The previously-held equity interest in the acquiree involved in other comprehensive income and other comprehensive income associated with the purchase of the foundation should be used party directly related to the disposal of assets or liabilities of the same accounting treatment (that is, except in accordance with the equity method of accounting in the acquiree is remeasured defined benefit plans other than changes in net liabilities or net assets due to a corresponding share of the rest of the acquisition date into current investment income).
6. Preparation of the consolidated financial statements
(1) The scope of consolidation
The scope of consolidation for the consolidated financial statements is determined on the basis of control. Control is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its operating activities. The relevant events refer to the activities that have significant influence on the return to the invested party. In accordance with the specific conditions, the relevant events of the invested party should conclude the sale and purchase of goods and services, the management of the financial assets, the purchase and disposal of the assets, the research and development activities, the financing activities and so on.
The scope of consolidation includes the Company and all of the subsidiaries. Subsidiary is an
enterprise or entity under the control of the Company.
Once the change in the relevant facts and circumstances leading to the definition of the relevant
elements involved in the control of the change, the company will be re-evaluated.
(2) Preparation of the consolidated financial statements.
The Company based on its own and its subsidiaries financial statements, in accordance with other relevant information, to prepare the consolidated financial statements.
For a subsidiary acquired through a business combination not under common control, the operating results and cash flows from the acquisition (the date when the control is obtained) are included in the consolidated income statement and consolidated statement of cash flows, as appropriated; no adjustment is made to the opening balance and comparative figures in the consolidated financial statements. Where a subsidiary and a party being absorbed in a merger by absorption was acquired during the reporting period, through a business combination involving enterprises under common control, the financial statements of the subsidiary are included in the consolidated financial statements. The results of operations and cash flow are included in the consolidated balance sheet and the consolidated income statement, respectively, based on their carrying amounts, from the date that common control was established, and the opening balances and the comparative figures of the consolidated financial statements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of the Company, the Company makes necessary adjustments to the financial statements of the subsidiary based on theCompany’s own accounting period or accounting policies. Where a subsidiary was acquired during the reporting period through a business combination not under common control, the financial statements was reconciliated on the basis of the fair value of identifiable net assets at the date of acquisition.
Intra-Group balances and transactions, and any unrealized profit or loss arising from intra-Group transactions, are eliminated in preparing the consolidated financial statements.
Minority interest and the portion in the net profit or loss not attributable to the Company are presented separately in the consolidated balance sheet withinshareholders’/owners’ equity and net profit. Net profit or loss attributable to minority shareholders in the subsidiaries is presented separately as minority interest in the consolidated income statement below the net profit line item. When the amount of loss for the current period attributable to the minority shareholders of a subsidiary exceeds the minorityshareholders’ portion of the opening balance ofshareholders’/equity
of the subsidiary, the excess is allocated against the minority interests.
When the Company loses control of a subsidiary due to the disposal of a portion of an equity investment or other reasons, the remaining equity investment is re-measured at its fair value at the date when control is lost. The difference between 1) the total amount of consideration received from the transaction that resulted in the loss of control and the fair value of the remaining equity investment and 2) the carrying amounts of the interest in the formersubsidiary’s net assets immediately before the loss of the control is recognized as investment income for the current period when control is lost. Other comprehensive income related to the former subsidiary's equity investment, using the foundation and the acquiree directly related to the disposal of the same assets or liabilities are accounted when the control is lost (ie, in addition to the former subsidiary is remeasured at the net defined benefit plan or changes in net assets and liabilities resulting from, the rest are transferred to the current investment income). The retained interest is subsequently measured according to the rules stipulated in the - “Chinese Accounting Standards for Business Enterprises No.2 - Long-term equity investment” or “Chinese Accounting Standards for Business Enterprises No.22 - Determination and measurement of financial instruments”.
The company through multiple transactions step deal with disposal of the subsidiary's equity investment until the loss of control, need to distinguish between equity until the disposal of a subsidiary's loss of control over whether the transaction is package deal. Terms of the transaction disposition of equity investment in a subsidiary, subject to the following conditions and the economic impact of one or more of cases, usually indicates that several transactions should be accounted for as a packagedeal:①these transactions areconsidered。simultaneously, or in the case of mutual influence made,②these transactions as a whole in order to achieve a complete business results;③the occurrence of a transaction depends on occurs at least one other transaction;④a transaction look alone is not economical, but when considered together with other transaction is economical.
If they does not belong to the package deal, each of them separately, as the case of a transaction in accordance with “without losing control over the disposal of a subsidiary part of a long-term equity investments“principles applicable accounting treatment. Until the disposal of the equity investment loss of control of a subsidiary of the transactions belonging to the package deal, the transaction will be used as a disposal of a subsidiary and the loss of control of the transaction. However, before losing control of the price of each disposal entitled to share in the net assets of the subsidiary 's investment corresponding to the difference between the disposal, recognized in the consolidated financial statements as other comprehensive income, loss of control over the transferred together with the loss of control or loss in the period.
7.Joint venture arrangements classification and Co-operation accounting treatment
(1) Joint arrangement
A joint arrangement is an arrangement of which two or more parties have jointcontrol，depending of the rights and obligation of the Company in the joint arrangement. A joint operation is a joint
arrangement whereby the Company has rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the Company has rights to the net assets of the arrangement.
(2) Co-operation accounting treatment
When the joint venture company for joint operations, confirm the following items and share common business interests related to:
A. Confirm individual assets and common assets held based on shareholdings;
B. Confirm individual liabilities and shared liabilities held based on shareholdings;
C. Confirm the income from the sales revenue of co-operate business output
D. Confirm the income from the sales of the co-operate business output based on shareholdings; E. Confirm the individual expenditure and co-operate business cost based on shareholdings.
(3)When a company is a joint ventures, joint venture investment will be recognized as long-term equi ty investments.
8.Recognition Standard of Cash& Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and investments having short holding term (normally will be due within three months from the day of purchase), with strong liquidity and easy to be exchanged into certain amount of cash that can be measured reliably and have low risks of change.
9.Foreign Currency Transaction
(1) Foreign Currency Transaction
The approximate shot exchange rate on the transaction date is adopted and translated as RMB amount when the foreign currency transaction is initially recognized. On the balance sheet date, the monetary items of foreign currency are translated as per the shot exchange rate on the balance sheet date, the foreign exchange conversion gap due to the exchange rate, except for the balance of exchange conversion arising from special foreign currency borrowings capitals and interests for the purchase and construction of qualified capitalization assets, shall be recorded into the profits and losses of the current period. The non-monetary items of foreign currency measured at the historical cost shall still be translated at the spot exchange rate on the transaction date, of which the RMB amount shall not be changed. The non-monetary items of foreign currency measured at the fair value shall be translated at the spot exchange rate on the fair value recognized date, the gap shall be recorded into the current profits and losses or other comprehensive incomes.
(2) Translation Method of Foreign Currency Financial Statement
For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet date is adopted as the translation exchange rate. For theowner’s equity, the shot exchange rate on the transaction date is adopted as the translation exchange rate, with the exception of “undistributed profits”. The incomes and expenses in the income statement shall be translated at the spot exchange rate or the approximate exchange rate on the transaction date. The translation gap of financial statement of foreign currency converted above shall be listed in other comprehensive incomes under theowner’s equity in the consolidated balance sheet.
10. Financial instruments
Financial instruments refer to contracts that form financial assets of one party and financial liabilities or equity instruments of other parties.
1. Confirmation and termination of financial instruments
When the company becomes a party to the financial instrument contract, the relevant financial assets or financial liabilities are confirmed.
Confirmation of financial instruments is terminated when financial assets satisfy one of the following conditions:
(1) The contractual right to receive cash flow from the financial asset is terminated;
(2) The financial asset has been transferred and the following conditions for derecognition of financial asset transfer are met.
When all or part of the current obligations of financial liabilities has been removed, confirmation of the financial instruments or part of it should be terminated. When the Company (the debtor) and the creditors sign agreements to take on new ways to replace the existing financial liabilities with new financial liabilities and the contract terms of existing financial liabilities and new financial liabilities are different in essence, derecognize the current financial liabilities and recognize the new financial liabilities. If the Company substantially amends the contract terms of the original financial liabilities (or part thereof), it shall terminate the confirmation of the original financial liabilities and at the same time confirm a new financial liabilities in accordance with the revised terms.
2. Classification and measurement of financial assets
At the time of initial recognition, the financial assets of the Company are classified into financial assets measured by amortized cost, financial assets measured by fair value and whose changes are included in other comprehensive income, and financial assets measured by fair value and whose changes are included in current profits and losses according to the company's business mode of managing financial assets and the contractual cash flow characteristics of financial assets.
The initial measurement of financial assets is calculated by using fair value. For financial assets measured at fair value, whose changes are included in current profits and losses, relevant transaction costs are directly included in current profits and losses; For other types of financial assets, relevant transaction costs are included in the initial recognition amount.
(1) Financial assets measured in amortized cost
Financial assets of the Company that meet the following conditions at the same time are classified as financial assets measured in amortized cost: 1) The business mode for managing the financial assets is aimed at collecting the contract cash flow; 2) The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and interest based on the amount of outstanding principal. For such financial assets, the interest income recognized according to the effective interest rate method is subsequently measured according to the amortized cost, and the gains or losses arising from amortization or impairment are included in the current profits and losses.
(2) Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets of the Company that meet the following conditions at the same time are classified as financial assets measured at fair value and whose changes are included in other
comprehensive income: 1) The business mode for managing the financial assets is aimed at both collecting the contractual cash flow and selling the financial assets; 2) The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and interest based on the amount of outstanding principal.
At the time of initial recognition, the company may designate non-trading equity instrument investments as financial assets measured at fair value and whose changes are included in other comprehensive income, list them as other equity instrument investments, and recognize dividend income when the conditions are met (once the designation is made, it shall not be revoked). Dividend income related to such financial assets is included in current profits and losses, and changes in fair value are included in other comprehensive income. When the financial asset ceases to be recognized, the accumulated gains or losses previously included in other comprehensive gains shall be transferred into retained income from other comprehensive income, and not be included in current profit and loss.
(3) Financial assets measured at fair value and whose changes are included in current profits and losses
The Company classifies the above-mentioned financial assets measured at amortized cost and the financial assets other than those measured at fair value and whose changes are included in other comprehensive income as financial assets measured at fair value and whose changes are included in current profits and losses, and lists them as transactional financial assets. In addition, at the time of initial recognition, in order to eliminate or significantly reduce accounting mismatch, the company designates some financial assets as financial assets measured at fair value and whose changes are included in the current profits and losses (once the designation is made, it cannot be revoked). In regard with such financial assets, the Company adopts fair value for subsequent measurement, and includes changes in fair value into current profits and losses.
3. Classification and measurement of financial liabilities
The Company's financial liabilities are classified into: financial liabilities measured at amortized cost and financial liabilities measured at fair value with changes recorded in current profits and losses upon initial recognition. Financial liabilities are measured at fair value upon initial recognition. For financial liabilities measured at fair value and whose changes are included in current profits and losses, relevant transaction costs are directly included in current profits and losses, and relevant transaction costs for other financial liabilities are included in their initial recognition amount.
(1) Financial liabilities measured in amortized cost
Except for the following items, the Company classifies financial liabilities as financial liabilities measured in amortized cost: 1) Financial liabilities measured at fair value and whose changes are included in current profits and losses; 2) Financial liabilities resulting from the transfer of financial assets that do not meet the conditions for derecognition or continue to be involved in the transferred financial assets; 3) Financial guarantee contracts that do not belong to the first two types of situations, and loan commitments that do not belong to the first type of situations with loan at a interest rate lower than market.
For such financial liabilities, the real interest rate method is adopted and the subsequent measurement is carried out according to amortized cost. When derecognition is terminated, the difference between the consideration paid and the book value of the financial liability shall be included in the current profits and losses.
(2) Financial liabilities measured at fair value and whose movements are included in the profit and loss of the current period
Such financial liabilities include: transactional financial liabilities and financial liabilities designated to be measured at fair value at the time of initial recognition and whose changes are included in current profits and losses. Subsequent measurement of such financial liabilities shall be based on fair value, and the gains or losses incurred from the changes of fair value, as well as the dividend and interest expenses related to such financial liabilities would be included in current profits and losses.
Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured at fair value at the time of initial measurement and whose changes are included in current profits and losses: 1) The designation can eliminate or significantly reduce accounting mismatch; 2) According to the company's risk management or investment strategy stated in official written documents, manage and evaluate the financial liability portfolio or the combination of financial assets and financial liabilities on the basis of fair value, and report to key management personnel within the company on this basis; 3) The financial liability includes embedded derivatives that need to be split separately.
4. Fair value of financial instruments
The fair value of financial assets or financial liabilities with active markets shall be determined based on quotations from active markets; Quotations in active markets include quotations for related assets or liabilities that can be easily and regularly obtained from exchanges, dealers, brokers, industry groups, pricing agencies or regulatory agencies, and can represent actual and frequent market transactions on the basis of fair trading.
The fair value of financial assets or financial liabilities that do not exist in an active market shall be determined by valuation techniques. In valuation, the Company adopts valuation techniques that are applicable in the current situation and supported by sufficient data and other information to select input values consistent with the characteristics of assets or liabilities considered by market participants in the transactions of related assets or liabilities, and give priority to the use of relevant observable input values as far as possible. If the relevant observable input value cannot be obtained or is not feasible, the unobservable input value shall be used.
5. Transfer of financial assets
If the company has transferred almost all risks and rewards in the ownership of the financial asset to the transferee, the confirmation of the financial asset shall be terminated; If almost all risks and rewards on the ownership of a financial asset are retained, the financial asset shall continue to be recognized.
If the Company neither transfers nor retains almost all risks and rewards in the ownership of financial assets, it shall be handled according to the following situations respectively: (1) If the control over the financial assets is not retained, the recognition of the financial assets shall be terminated, and the rights and obligations arising from or retained in the transfer shall be separately recognized as assets or liabilities; (2) If the control over the financial asset is retained, the relevant financial asset shall continue to be recognized according to the extent that it continues to be involved in the transferred financial asset, and the relevant liabilities shall be recognized accordingly. The extent to which the company continues to be involved in the transferred financial assets refers to the extent to which the company bears the risks or rewards of changes in the value of the transferred
financial assets.
In judging whether the financial asset transfer meets above financial asset derecognition conditions, the principle of substance surpassing form is adopted. The Company divides the transfer of financial assets into overall transfer and partial transfer. If overall transfer of financial assets meets the derecognition conditions, the difference between the following two amounts will be accounted into current profits or losses:
(1) Book value of the transferred financial assets;
(2) The sum of the consideration received due to the transfer and the accumulated amount of changes in the fair value which is originally accounted in the owner's equity (in case the financial asset related to the transfer is the financial asset available for sale)
Where the partial transfer of the financial assets meets the derecognition condition, the entire book value of the transferred financial assets shall be respectively amortized at the relative fair values of the part derecognized and the part not derecognized, and the difference between the following two items is accounted in profits and losses of current period:
(1) Book value of the derecognised part;
(2) The sum of the derecognised part and the amount corresponding to the derecognized part in the accumulated amount of changes in the fair value previously recognized directly in the owner's equity (in case of the financial assets involved in the transfer are available-for-sale financial assets). Where the transfer of the financial assets does not meet the derecognition condition, such financial assets is recognized continuously, and the received consideration is recognized as a financial liability. 6. Provision for impairment of financial assets (excluding receivables)
Based on the expected credit losses, the Company evaluates the expected credit losses of financial assets measured in amortized cost and financial assets measured at fair value and whose changes are included in other comprehensive income, conducts impairment accounting and confirms the loss reserve. Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted by the risk of default. Credit loss refers to the difference between the cash flow of all contracts discounted according to the original real interest rate and the expected cash flow of all contracts receivable according to the contract, that is, the present value of all cash shortages.
When one or more events that adversely affect the expected future cash flow of a financial asset occur, the financial asset becomes a financial asset with credit impairment. Evidence of credit impairment of financial assets includes the following observable information: (1) Major financial difficulties of the issuer or debtor; (2) The debtor violates the contract, such as default or overdue payment of interest or principal, etc.; (3) Creditors give concessions that the debtor will not make under any other circumstances due to economic or contractual considerations related to the debtor's financial difficulties; (4) The debtor is likely to go bankrupt or undergo other financial reorganization; (5) The financial difficulties of the issuer or debtor lead to the disappearance of the active market of the financial asset; (6) A financial asset is purchased or generated at a substantial discount, which reflects the fact that credit losses have occurred. Credit impairment of financial assets may be caused by the combined action of multiple events, and may not be caused by separately identifiable events. On each balance sheet date, the Company separately measures the expected credit losses of financial instruments at different stages. If the credit risk of financial instruments has not increased significantly since the initial confirmation, it is in the first stage. The Company measures the loss reserve according to the expected credit loss in the next 12 months; If the credit risk of a financial
instrument has increased significantly since its initial recognition but no credit impairment has occurred, it is in the second stage. The Company measures the loss reserve according to the expected credit loss of the instrument throughout the duration; If a financial instrument has suffered credit impairment since its initial recognition, it is in the third stage. The Company measures the loss reserve according to the expected credit loss of the instrument throughout the duration.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that their credit risk has not increased significantly since the initial confirmation, and measures the loss reserve according to the expected credit loss in the next 12 months. For financial instruments in the first and second stages and with low credit risk, the Company calculates interest income based on the book balance before deducting impairment provisions and the actual interest rate. For financial instruments in the third stage, the interest income shall be calculated according to their book balance minus the amortized cost after impairment provision and the actual interest rate.
7. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are listed separately in the balance sheet without offsetting each other. However, if the following conditions are met at the same time, the net amount after offset shall be listed in the balance sheet: (1) The company has the legal right to offset the confirmed amount, and such legal right is currently enforceable; (2) The Company plans to settle on a net basis, or realize the financial assets and settle the financial liabilities at the same time.
11.Notes receivable
For bills receivable, regardless of whether they contain significant financing components, the company always measures its loss reserves according to the amount equivalent to the expected credit loss during the whole duration. The increase or reversal amount of loss reserves thus formed shall be included in the current profits and losses as impairment losses or profits.
The Company only uses bank acceptance bills for settlement, and the management evaluates this category of money as with lower credit risk. If there is objective evidence that a certain bill receivable has suffered credit impairment, the Company will make bad debt provision for the bill receivable and confirm the expected credit loss.
12.Account receivable
The Company shall make provision for bad debts according to the expected credit loss amount of accounts receivable during the whole duration.
For accounts receivable with similar credit risk characteristics, the company combines them according to the aging status. According to historical experience, the expected loss rate of such combined accounts receivable during the whole duration is estimated as follows:
|||
|-|-|
|Aging|Expected loss rate of accounts receivable (%)|
|Within 1 year（Including 1 year）|5.00|
|1-2 years|10.00|
|2-3 years|30.00|

|||
|-|-|
|Over 3 years|50.00|

If there is objective evidence that a certain account receivable has suffered credit impairment, the Company will make bad debt provision for the account receivable and confirm the expected credit loss. Accounts receivable with an amount of more than 1 million are classified as accounts receivable with significant single amount and provision for bad debts separately, while accounts receivable with no more than 1 million are classified as accounts receivable with insignificant single amount and provision for bad debts separately.
13. Receivable financing
14.Other account receivable
Determination method and accounting treatment method of expected credit loss of other receivables
For other receivables, regardless of whether with any significant financing component, the Company considers all reasonable and reliable information, including forward-looking information, estimates the expected credit loss of other receivables in a single or combined manner, and adopts a simplified model of expected credit loss, and always measures the loss reserve according to the expected credit loss throughout the duration. The accrual method is as follows:
1. At the end of the period, other receivables that have objective evidence of impairment are individually tested for impairment, and impairment losses are recognized and provision for bad debts is made according to the difference between the present value of expected future cash flows and their book values.
2. When a single other receivable cannot evaluate the expected credit loss at a reasonable cost, the Company divides other receivable portfolios according to the credit risk characteristics and calculates the expected credit loss on the basis of the portfolios. Aging usually reflects the credit risk status of other receivables. The larger the aging, the greater the credit risk in general. According to historical experience, the expected loss rate of other receivables with different aging status during the entire duration is estimated as follows:
|||
|-|-|
|Aging|Expected loss rate of other accounts receivable (%)|
|Within 1 year（Including 1 year）|5.00|
|1-2 years|10.00|
|2-3 years|30.00|
|Over 3 years|50.00|

15. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1.Investories class
Inventory shall include the finished products or goods available for sale during daily activities, the products in the process of production, the stuff and material consumed during the process of production or the services offered.
2．Valuation method of inventory issued
The company calculates the prices of its inventories according to the weighted averages method 3. Recognition Criteria for the Net Realizable Value of Different Category of Inventory and Withdrawing Method of Inventory Falling Price Reserves
The inventory shall be measured by use of the lower between the cost and the net realizable value and the inventory falling price reserves shall be withdrawn as per the gap of single inventory cost minus the net realizable value at the balance sheet date. The net realizable value refers to the amounts that the estimated sale price of inventory minus the estimated costs ready to happen till the completion of works, the estimated selling expenses and the relevant expenses of taxation. The company shall recognize the net realizable value of inventory based on the acquired unambiguous evidence and in view of the purpose to hold the inventory, the influence of matters after the balance sheet date and other factors. The net realizable value of inventory directly for sale shall be recognized according to the amounts of the estimated sale price of the inventory minus the estimated sale expenses and the relevant expenses of taxation during the process of normal production and operation. The net realizable value of inventory that required to conduct processing shall be recognized according to the amounts of the estimated sale price of the finished products minus the estimated costs ready to happen till the completion of works, the estimated selling expenses and the relevant expenses of taxation. On the balance sheet date, the net realizable value shall be respectively defined for the partial agreed with the contract price and others without the contract price in the same inventory, and the amounts of the inventory falling price reserves withdrawn or returned shall be respectively recognized in comparison with their corresponding costs. 4. Inventory System
Adopts the Perpetual Inventory System
5．Amortization method for low cost and short-lived consumable items and packaging materials
Low cost and short-lived consumable items are amortized using immediate write-offmethod。
16.Contract assets
Not applicable
17.Contract cost
Not applicable
18.Held-for-sale assets
If the company recovers its book value mainly by sale of non-current asset (including exchange of
non-monetary assets of commercial nature and similarly hereinafter) , instead of continued use of one non-current asset or disposal group, which shall be included into available-for-sale. In specific standards, the following conditions shall be met at the same time: One non-current asset or disposal group is available for sale at all times under current status depending on standard practice of selling them in similar transactions; the company has made a resolution on the sale plan and gained definitive purchase commitments; the sale is expected to be finished within one year. In which, the disposal group refers to one set of assets that may be disposed as a whole along with other assets by sale or other ways in one deal and the liability transferred and related directly to such assets. If the asset group or combination of asset group under account title disposal group amortizes the goodwill obtained from business combination in accordance with No.8 of Accounting Standards for Business Enterprises-- Asset Impairment, the disposal group shall include the goodwill amortized to it.
When thecompany’s initial measurement or re-measurement on the balance sheet date is classified into available-for-sale non-current asset and disposal group, the book value shall be written down to the net amount of fair value minus selling expenses if it is higher than the net amount of fair value minus selling expenses, the write-down shall be confirmed as the assets impairment loss and included in current profits and losses, meanwhile the available-for-sale asset depreciation reserves shall be accrued. For the disposal group, the asset impairment loss shall be written off pro rata the book value of each non-current asset that is applicable to No.42 of Accounting Standards for Business Enterprises: Available-for-sale Non-current Assets, Disposal Group and Discontinued Operations (hereinafter referred to as “Available-for-sale rule for measurement”) after deducting the book value of goodwill in it.
If the net amount of the fair value of available-for-sale disposal group minus selling expenses increases after the balance sheet date, the previous write-downs shall be recovered and reversed in asset impairment loss of non-current assets that are applicable to available-for-sale rule for measurement after being included into available-for-sale account title, the amount of reversal shall be included in current profits and losses and increased pro rata its book value based on the proportion of the book value of each non-current asset in the disposal group that is applicable to available-for-sale rule for measurement except for goodwill; the book value of written-off goodwill and the asset impairment loss confirmed before the non-current asset specified in available-for-sale rule for measurement is classified into available-for-sale asset must not be reversed.
The available-for-sale non-current assets or the non-current assets in the disposal group shall not be accrued depreciation or amortization, the interest of debit in available-for-sale disposal group and other expenses shall continue to be confirmed.
The non-current asset will no longer be included into available-for-sale category or will be removed from the available-for-sale disposal group if it or the disposal group has no longer satisfied the conditions for classifying available-for-sale assets and measured as per the lower of: (1) book value of the non-current asset before being classified into available-for-sale asset adjusted on the basis of the depreciation, amortization or impairment that shall be confirmed on the assumption that the non-current asset is not included into available-for-sale account title; (2)Recoverable amount.
19.Creditor's rights investment
Not applicable
20. Other Creditor's rights investment
Not applicable
21.Long-term account receivable
Not applicable
22.Long-term equity investments
Long-term equity investments referred to in this section refer to the Company invested entity has control, joint control or significant influence over the long-term equity investments. The Company invested does not have control, joint control or significant influence over the long-term equity investments as financial assets available for sale or at fair value and the changes included financial assets through profit or loss.
Joint control is the Company control over an arrangement in accordance with the relevant stipulations are common, related activities and the arrangement must be after sharing control participants agreed to the decision-making. Significant influence is the Company s financial and operating policies of the entity has the right to participate in decision-making, but can not control or with other parties joint control over those policies.
1. Determination of Investment cost
The cost of a long-term equity investment acquired through business combination under common control is measured at the acquirer's share of the combination date book value of the acquiree's net equity in the ultimate controller's consolidated financial statements. The difference between the cost and book value of cash paid, non-monetary assets transferred and liabilities assumed is adjusted to capital reserves, and to retained earnings if capital reserves is insufficient. If the consideration is transferred by way of issuing equity instruments, the face value of the equity instruments issued is recognised in share capital and the difference between the cost of the face value of the equity instruments issued is adjusted to capital reserves, and to retained earnings if capital reserves is insufficient. The cost of a long-term equity investment acquired through business combination not under common control is the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued. (For the equity of the combined party under common control obtained step-by-step through multiple transactions and the business combination under common control ultimately formed, the company should respectively dispose all the transactions if belong to the package deal. For the package deal, all the transactions will be conducted the accounting treatment as the deal with acquisition of control. For the non-package deal, the shares of the book value of thestockholders’equity/owners’ equity of the combined party in the consolidated financial statements of the ultimate control party shall be as the initial investment cost of the long-term equity investment, and the capital reserves shall be adjusted for the difference between the initial investment cost of long-term equity investment and the sum of the book value of long-term equity investment before
merging and that of new consideration payment obtained on the merger date, or the retained earnings shall be adjusted if the capital reserves are insufficient to offset. As for the equity investment held before the merger date, the accounting treatment will not be conducted temporarily for other comprehensive income accounted by equity method or confirmed for the financial assets available for sale.)
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure of audit, legal services, valuation and consultancy and other administrative expenses, are recognised in profit or loss for the period during which the acquisition occurs. For the merger of enterprises not under the same control through gaining the shares of the combined enterprise by multiple steps of deals, it shall deal with it in the following two ways depending on that if it belongs to "a package deal": if it belongs to "a package deal", it shall deal with all the deals as one obtaining the control power; if it does not belong to "a package deal", it shall, on the date of merger, regard the sum of book value of theowner’s original equity of the merged enterprise and the newly increased investment cost as the initial cost of the long-term equity investment. For the shares originally held by this enterprise accounted for by weighted equity method, the relevant other comprehensive income shall not be accounted for temporarily. If the equity investment held originally can be classified as the financial assets for sale, the difference between the fair value and the book value, and the variation in the accumulative fair value of other comprehensive returns recorded originally will be transferred into the current profits and losses.
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure of audit, legal services, valuation and consultancy and other administrative expenses, are recognised in profit or loss for the period during which the acquisition occurs.
Long-term equity investments acquired not through business combination are measured at cost on initial recognition. Depending on the way of acquisition, the cost of acquisition can be the total cash paid, the fair value of equity instrument issued, the contract price, the fair value or book value of the assets given away in the case of non-monetary asset exchange, or the fair value of the relevant long-term equity investments. The cost of acquisition of a long-term equity investment acquired not through business combination also includes all directly associated expenses, applicable taxes and fees, and other necessary expenses. When the significant impact or the joint control but non-control on the invested party can be implemented due to the additional investment, the long-term equity investment cost is the sum of the fair value of the equity investment originally held and the new investment costs based on the recognition of “Accounting Standards for Enterprises No.22– Recognition and Measurement of Financial Instruments”.
2. Subsequent Measurement
To be invested joint control ( except constitute common operator ) or long-term equity investments significant influence are accounted for using the equity method. In addition, the Company's financial statements using the cost method of accounting for long-term equity can exercise control over the investee.
(1)Cost method of accounting for long-term equity investments
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash dividends or profits declared but not yet paid that are included in the price or consideration actually paid upon acquisition of the long-term equity investment, investment income is recognized in
the period in accordance with the attributable share of cash dividends or profit distributions declared by the investee.
(2)Equity method of accounting for long-term equity investments
When using the equity method, the initial investment cost of long-term equity investment exceeds the investor's net identifiable assets of the fair share of the investment value, do not adjust the initial inve stment cost of long-term equity investment; the initial investment cost is less than the investee unit sh are of identifiable net assets at fair value, the difference is recognized in profit or loss, while the long- term equity investment adjustment costs.
Where the initial investment cost of a long-term equity investment exceeds the investingenterprise’s interest in the fair values of theinvestee’s identifiable net assets at the time of acquisition, no adjustment shall be made to the initial investment cost. The carrying amount of an long-term equity investment measured using the equity method is adjusted by the Company's share of the investee's net profit and other comprehensive income, which is recognised as investment income and other comprehensive income respectively. The carrying amount of an long-term equity investment measured using the equity method is reduced by profit distribution or cash dividends announced by the investee. The carrying amount of an long-term equity investment measured using the equity method is also adjusted by the investee's equity movement other than net profit, other comprehensive income and profit distribution, which is adjusted to capitalreserves。The net profit of the investee is adjusted by the fair value of the investee's identifiable assets as at acquistion. The financial statements and hence the net profit and other comprehensive income of an investee which does not adopt accounting policies or accounting period uniform with the Company is adjusted by the Company's accounting policies and accounting period. The Company's share of unrealised profit or loss arising from related party transactions between the Company and an associate or joint venture is deducted from investment income. Unrealised loss arising from related party transactions between the Company and an associate or joint venture which is associated with asset impairment is not adjusted. Where assets transferred to an associate or joint venture which form part of the Company's investment in the investee but which does not enable the Company obtain control over the investee, the cost of the additional investment acquired is measured at the fair value of assets transferred and the difference between the cost of the additional investment and the book value of the assets transferred is recognised in profit or loss. Where assets transferred to an associate or joint venture form an operation, the difference between the consideration received and the book value of the assets transferred in recognised in profit or loss. Where assets transferred from an associate or joint venture form an operation, the transaction is accounted for in accordance with CAS 20 - Business Combination, any gain or loss is reocgnised in profit or loss.
The Company's share of an investee's net loss is limited by the sum of the book value of the long-term equity investment and other net long-term investments in the investees. Where the Company has obligation to share additional net loss of the investee, the estimated share of loss recognised as accrued liabilities and investment loss. Where the Company has unrecognised share of loss of the investee when the investee generates net profit, the Company's unrecognised share of loss is reduced by the Company's share of net profit and when the Company's unrecognised share or loss is eliminated in full, the Company's share of net profit, if any, is recognised as investment income. (3)Acquisition of minority interest
The difference between newly increased equity investment due to acquisition of minority interests and portion of net asset cumulatively calculated from the acquisition date is adjusted as capital reserve. If the capital reserve is not sufficient to absorb the difference, the excess are adjusted against returned earnings.
(4)Disposal of long-term equity investment
Where the parent company disposes long-term investment in a subsidiary without a change in control, the difference in the net asset between the amount of disposed long-term investment and the amount of the consideration paid or received is adjusted to theowner’s equity. If the disposal of long-term investment in a subsidiary involves loss of control over the subsidiary, the related accounting policies in Note applies. For disposal of long-term equity investments in any situation other than the fore-mentioned situation, the difference between the book value of the investment disposed and the consideration received is recognised in profit or loss.
The investee's equity movement other than net profit, other comprehensive income and profit distribution is reocgnised in profit or loss proportionate to the disposal.
Where a long-term equity investment is measured by the equity method both before and after part disposal of the investment, cumulative other comprehensive income relevant to the investment recognised prior to the acquistion is treated in the same manner that the investee disposes the relevant assets or liabilities proportionate to the disposal. The investee's equity movement other than net profit, other comprehensive income and profit distribution is reocgnised in profit or loss proportionate to the disposal.
Where a long-term equity investment is measured at cost both before and after part disposal of the investment, cumulative other comprehensive income relevant to the investment recognised, as a result of accounting by equity method or recognition and measurement principles applicable to financial instruments, prior to the Company's acquisition of control over the investee is treated in the same manner that the investee disposes the relevant assets or liabilities and recognised in profit or loss proportionate to the disposal.The investee's equity movement other than net profit, other comprehensive income and profit distribution, as a result of accounting by equity method, is reocgnised in profit or loss proportionate to the disposal.
Where the Company's control over an investee is lost due to partial disposal of investment in the investee and the Company continues to have significant influence over the investee after the partial disposal, the investment in measured by the equity method in the Company's separate financial statements; where the Company's control over an investee is lost due to partial disposal of investment in the investee and the Company ceases to have significant influence over the investee after the partial disposal, the investment in measured in accordance with the recognition and measurement principles applicable to financial instruments in the Company's separate financial statements and the difference between the fair value and the book value of the remaining investment at the date of loss of control is recognised in profit or loss. Cumulative other comprehensive income relevant to the investment recognised, as a result of accounting by equity method or recognition and measurement principles applicable to financial instruments, prior to the Company's acquisition of control over the investee is treated in the same manner that the investee disposes the relevant assets or liabilities on the date of loss of control. The investee's equity movement other than net profit, other comprehensive income and profit distribution, as a result of accounting by equity method, is reocgnised in profit or
loss when control is lost. Where the remaining investment is measured by equity method, the fore-mentioned other comprehensive income and other equity movement are recognised in profit or loss proportionate to the disposal; Where the remaining investment is measured in accordance with the recognition and measurement principles applicable to financial instruments, the fore-mentioned other comprehensive income and other equity movement are recognised in profit or loss in full.
Where the Company's joint control or significant influence over an investee is lost due to partial disposal of investment in the investee,the remaining investment in the investee is measured in accordance with the recognition and measurement principles applicable to financial instruments, the difference between the fair value and the book value of the remaining investment at the date of loss of joint control or significant influence is recognised in profit or loss.Cumulative other comprehensive income relevant to the investment recognised, as a result of accounting by equity method, prior to the partial disposal is treated in the same manner that the investee disposes the relevant assets or liabilities on the date of loss of joint control or significant influence. The investee's equity movement other than net profit, other comprehensive income and profit distribution is reocgnised in profit or loss when joint control or significant influence is lost.
Where the Company's control over an investee is lost through multiple disposals and the multiple disposals shall be viewed as one single transaction, the multiple disposals is accounted for one single transaction which result in the Company's loss of control over the investee. Each difference between the consideration received and the book value of the investment disposed is recognised in other comprehensive income and reclassified in full to profit or loss at the time when control over the investee is lost.
23.Investment property
The measurement mode of investment property
The company shall adopt the cost mode to measure the investment property.
Depreciation or Amortization Method by Use of Cost Mode
1．The measurement mode of investment property
The investment property of the company includes the leased land use rights, the leased buildings, the land use rights held and prepared to transfer after appreciation.
The company shall adopt the cost mode to measure the investment property.
2. Depreciation or Amortization Method by Use of Cost Mode
The leased buildings of the investment property in the company shall be withdrawn the depreciation by the service life average method, and the depreciation policy is the same with that of the fixed assets. The land use rights held and prepared to transfer after appreciation in the investment property shall be amortized by the line method, and the specific accounting policy is same with that of the intangible assets.
24.Fixed assets
1．The conditions of recognition
Fixed assets refers to the tangible assets that are held for the sake of producing commodities, rendering labor service, renting or business management and their useful life is in excess of one fiscal year. The fixed assets can be recognized when the following requirements are all met: (1) the economic benefits relevant to the fixed assets will flow into the enterprise. (2) the cost of the fixed assets can be measured reliably. The fixed assets of the company include the houses and buildings, the decoration of the fixed assets, the machinery equipment, the transportation equipment, the electronic instrument and other devices.
2．The method for depreciation
||||||
|-|-|-|-|-|
||The method for|Expected useful life|||
|Category|||Estimated residual value|Depreciation|
||depreciation|（Year）|||
|House and|Straight-line method||||
|Building-|||||
|||35 years|4%|2.74%|
|Production|||||
|House and Building-Non-|Straight-line method||||
|||40 years|4%|2.40%|
|Production|||||
|Decoration of Fixed|Straight-line method||||
|||10 years||10.00%|
|assets|||||
|Machinery and|Straight-line method||||
|||10-14 years|4%|9.60%-6.86%|
|equipment|||||
|Transportation|Straight-line method||||
|||8 years|4%|12.00%|
|equipment|||||
|Electronic equipment|Straight-line method||||
|||8 years|4%|12.00%|
|Other equipment|Straight-line method||||
|||8 years|4%|12.00%|

3．Cognizance evidence and pricing method of financial leasing fixed assets
(1) Recognition Criteria of the Fixed Assets under Financing Lease
The financing lease shall be recognized if the following one or several criteria are met:① the ownership of the leasing assets shall be transferred to the tenant when the expiration of lease term.②
the tenant has the option to purchase the leasing assets, and the made purchase price is expected to be
far less than the fair value of the leasing assets in the implementation of the option. Thus, it can be
reasonably recognized that the tenant will implement the option on the lease date.③ the ownership
of assets is not transferred, but the lease term shall be the most of the life of the lease assets.④ the least present value of the lease payment of the tenant and the least present value of the lease receipts on the lease date almost equal to the fair value of the leasing assets on the lease date respectively.⑤ the leasing assets have the special nature, and only the tenant can use if there is no major modifications.
(2) Valuation of Fixed Assets Acquired under Finance Leases: the fixed assets acquired under finance leases shall be book kept according to the lower between the fair value of the leasing assets and the least lease payment on the lease date.
(3) Depreciation Method of Fixed Assets Acquired under Finance Leases: the depreciation shall be withdrawn for the fixed assets acquired under finance leases as per the depreciation policy of own fixed assets.
25.Construction in progress
1. The projects under construction shall be recognized when the economic benefits may flow into and the cost can be reliably measured. Meanwhile, the projects under construction shall be measured according to the actual cost occurred before the assets are built to achieve the expected usable condition.
2. The projects under construction shall be transferred into the fixed assets according to the actual project costs when the expected usable condition achieved. For the expected usable condition achieved while the final accounts for completed projects not handled yet, the projects shall be transferred into the fixed assets as per the estimated value. After the final accounts for completed projects handled, the original estimated value shall be adjusted as per the actual cost, but the original withdrawn depreciation shall not be adjusted again.
26.Borrowing costs
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset. Other borrowing expenses are recognized as expenses according to the occurred amount, and accounted into gain/loss of current term.
2. Duration of capitalization of Loan costs
(1).When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place.
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state have begun.
（2）Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted by activities other than those necessary to prepare the asset for its intended use or sale, when the interruption is for a continuous period of more than 3 months. Borrowing costs incurred during these periods recognized as an expense for the current period until the acquisition, construction or production is resumed.
（3）When the construction or production meets the intended use or sale of state of capitalization conditions, the Loan costs should stop capitalization.
3. Computation Method for Capitalization Rate and Amount of Borrowing Costs
With regard to the special borrowings for the purchase and construction of qualified assets, the capitalized interest amount shall be recognized according to the amount of the interest cost for the special borrowings actually occurred during the current period (including the amortization of discount or premium recognized as per the effective interest method) minus the interest income acquired after the borrowings deposit in bank or the investment income obtained from the temporary investment. For the general borrowings for the purchase and construction of qualified assets, the capitalized interest amount of the general borrowings shall be computed and recognized according to the weighted average of accumulative asset expense beyond the expense of the special borrowings, multiplying the capitalization rate of general borrowings.
27.Biological Assets
Not applicable
28.Oil& Gas assets
Not applicable
29. Right to use assets
Not applicable
30.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
(1) The intangible assets include the land use rights, the professional technology and the software, which are conducted the initial measurement as per the cost.
(2) The service life of intangible assets is analyzed and judged when of the company acquires the intangible assets. For the finite service life of the intangible assets, the years of service life or the quantity of service life formed and the number of similar measurement unit shall be estimated. If the term of economic benefits of the intangible assets brought for the company is not able to be foreseen, the intangible assets shall be recognized as that with the indefinite service life.
(3) Estimation Method of Service life of Intangible Assets
1) For the intangible assets with the finite service life, the company shall generally consider the following factors to estimate the service life:① the normal service life of products produced with the assets, and the acquired information of the service life of similar assets.② the estimation of the current stage conditions and the future development trends in the aspects of technology and craft.③ the demand of the products produced by the assets or the offered services in the market.④ the
expectation of actions adopted by current or potential competitors.⑤ the expected maintenance expense for sustaining the capacity to economic benefits brought by the assets and the ability to the relevant expense expected.⑥ the relevant law provision or the similar limit to the control term of the assets, such as the licensed use term and the lease term.⑦ the correlation with the service life of other assets held by the company.
2) Intangible Assets with Indefinite Service Life, Judgment Criteria on Indefinite Service Life and Review Procedure of Its Service Life
The company shall be unable to foresee the term of economic benefits brought by the assets for the company, or the indefinite term of intangible assets recognized as the indefinite service life of intangible assets.
The judgment criteria of Indefinite service life:① as from the contractual rights or other legal rights, but the indefinite service life of contract provision or legal provisions.② unable to judge the term of economic benefits brought by the intangible assets for the company after the integration of information in the same industry or the relevant expert argumentation.
At the end of every year, the review should be made for the service life of the intangible assets with the indefinite service life, and the relevant department that uses the intangible assets, shall conduct the basic review by the method from up to down, in order to evaluate the judgment criteria of the indefinite service life if there is the change.
(4) Amortization Method of Intangible Assets Value
The intangible assets with the finite service life shall be systematically and reasonably amortized according to the expected implementation mode of the economic benefits related to the intangible assets during the service life, and the line method shall be adopted to amortize for the intangible assets unable to reliably recognize the expected implementation mode. The specific service life is as follows:
||
|-|
|Items|
|Land use right|
|Proprietary technology|
|Software|

The intangible assets with the indefinite service life shall not be amortized, and the company shall make the review of the service life of the intangible assets during every accounting period.
(5) If there is the impairment for the intangible assets with the definite service life on the balance sheet date, the corresponding impairment provision shall be withdrawn according to the difference between the book value and the recoverable amount. The intangible assets with the indefinite service life and without the usable condition shall be conducted the impairment test every year whether the impairment
exists.
2. Accounting Policy of Internal Research and Development Expenditure
The expenditure for internal research and development project in the study stage shall be recorded into the current profits and losses when occurring. The expenditure for internal research and development project in the development stage shall be recognized as the intangible assets when the following requirements are simultaneously met: (1) the completion of the intangible assets is available for use or sale, and feasible in the technology. (2) the intention to complete the intangible assets and use or sale. (3) the method for the economic benefits produced by the intangible assets, including the evidence that shows there exists the market for the products generated from the intangible assets or the intangible assets have the market. The intangible assets are used internally which shows the serviceability. (4) there are sufficient technology, financial resources and other resources to support the completion of the development of the intangible assets, and there is ability to use or sell the intangible assets. (5) the expenditure belong to the development stage of the intangible assets can be reliably measured.
The specific criteria for the division of the internal research and development projects at the research stage and the development stage of the company is as follows: (1) the investigation stage planned to obtain the new technology and knowledge, shall be recognized as the research stage, which has the features of planning and exploration. (2) before the commercial manufacture and use, the research results or other knowledge should be applied for the plan or design, in order to produce the new or improved stages with substantial materials, devices and products, which should be recognized as the development stage, and this stage has the features of pertinence and more possibility to create the achievement.
31.Long-term Assets Impairment
The company shall make judgment of the long-term assets including the long-term equity investment, the investment property measured by the cost mode, the fixed assets and the projects under construction if there is possible impairment on the balance sheet date. If there exists the evidence shows that the long-term assets have the impairment, the impairment test should be conducted, and the recoverable amount should be estimated. The impairment shall be confirmed if there exists after the comparison of the estimated recoverable amount of the assets and its book value, and if the assets impairment provision shall be withdrawn to recognize the corresponding impairment losses. The estimation of the recoverable amount of assets should be confirmed according to the higher one between the net amount of the fair value minus the disposal costs and the present value of the cash flow of assets expected in the future.
The company shall conduct the impairment test at least every year for the goodwill established by the business combination and the intangible assets with the indefinite service life whether there exists the impairment.
The impairment loss of long-term assets after recognizedshouldn’t be reversed in the future accounting period.
32.Long-term amortizable expenses
Deferred charges represent expenses incurred that should be borne and amortized over the current and subsequent period (together of more than one year).
The long-term unamortized expense shall be book kept as per the actual amount occurred, and shall be averagely amortize within the benefit period or the specified period. If the long-term unamortized expensecan’t make the benefits for the future accounting period, the amortized value of the unamortized project shall all be transferred into the current profits and losses.
33.Contract liabilities
Not applicable
34.Remuneration
1. Accounting Treatment Method of Short-term Compensation
During the accounting period of service provision of staff, the company shall regard the actual short-term compensation as the liability and record into the current profits and losses or the relevant assets cost as per the beneficiary. Of which, the non-monetary welfare shall be measured as per the fair value.
2. Accounting Treatment Method of Severance Benefit Plans
The severance benefit plans can be divided into the defined contribution plan and the defined benefit plan according to the risk and obligation borne.
(1) The Defined Contribution Plan
The contribution deposits that paid to the individual subject for the services provided by the staffs on the balance sheet date during the accounting period, shall be recognized as the liability, and recorded into the current profits and losses or the relevant asset costs as per the beneficiary.
(2) The Defined Benefit Plan
The defined benefit plan is the severance benefit plans with the exception of the defined contribution plans.
1) Based on the expected cumulative welfare unit method, the company shall adopt unbiased and mutually consistent actuarial assumptions to make evaluation of demographic variables and financial variables, measure and define the obligations arising from the benefit plan, and determine the period of the relevant obligations. The company shall discount all the defined benefit plan obligations, including the obligation within twelve months after the end of the annual report during the expected services provision of employee. The discount rate adopted in discounting shall be recognized according to the bonds matched with the defined benefit plan obligation term and the currency at the balance sheet date or the market return of high-quality corporate bonds in the active market.
2) If there exist the assets for the defined benefit plan, the deficit or surplus arising from the present value of the defined benefit plan obligations minus the fair value of the defined benefit plan assets are recognized as the net liability or the net assets of the defined benefit plan. If there exists the surplus of the defined benefit plan, the lower one between the surplus of the define benefit plan and the upper limit of assets shall be used to measure the net assets of the defined benefit plan. The upper limit of assets refers to the present value of economic benefits obtained from the refund of the defined benefit plans or
the reduction of deposit funds of future defined benefit plans.
3) At the end of period, theemployee’s payroll costs arising from the defined benefit plan are recognized as the service costs, the net interests on the net liabilities or the net assets of the defined benefit plan, and the changes caused by the net liabilities and the net assets of the defined benefit plan that re-measured. Of which, the service costs and the net interests on the net liabilities or the net assets of the defined benefit plan shall be recorded into the current profits and losses or the relevant assets costs, the changes caused by the net liabilities and the net assets of the defined benefit plan that re-measured shall be recorded into other comprehensive incomes, which should not be switched back to the profits and losses during the subsequent accounting period, but the amount recognized from other comprehensive incomes can be transferred within the scope of the rights and interests.
4) The profit or loss of one settlement shall be recognized when settling the defined benefit plan.
3. Accounting Treatment Method of Demission Welfare
The employee compensation liabilities generated by the demission welfare shall be recognized on the early date and recorded into the current profits and losses: (1) when the companycan’t withdraw the demission welfare provided due to the rundown suggestion or the termination of labor relations plans. (2) when the company recognizes the costs or the expenses related to the reorganization of demission welfare payment.
The earlier one between when the companycan’t withdraw the rundown suggestion or the termination of labor relations plans at its side and when the costs relevant to the recombination of dismission welfare payment, shall be recognized as the liabilities arising from the compensation due to the termination of labor relations with staff and shall be recorded into the current profits and losses. Then company shall reasonably predict and recognize the payroll payable arising from the dismission welfare. The dismission welfare, which is expected to finish the payment within twelve months after the end of the annual report recognized, shall apply to the relevant provisions of short-term compensation. The dismission welfare, which is expected to be unfinished for the payment within twelve months after the end of the annual report recognized, shall apply to the relevant provisions of short-term compensation, shall apply to the provisions related to other long-term employee benefits. 4. Accounting Treatment Method of Other Long-term Employee Benefits
If other long-term employee benefits of employees provided by the company meet the conditions of the defined contribution plan, the accounting treatment shall be made in accordance with the defined contribution plan. Except for these, other long-term benefits shall be made the accounting treatment according to the defined benefit plan, but the changes arising from the re-measurement of net liabilities or net assets of other long-term employee benefits shall be recorded into the current profits and losses or the relevant assets costs.
35.Lease liabilities
Not applicable
36. Estimated Liabilities
1. Recognition Criteria of Estimated Liabilities
The liabilities shall be recognized when external guarantee, pending litigation or arbitration, product quality assurance, staff reduction plan, loss contract, recombination obligation, disposal obligation of the fixed assets and other pertinent businesses all meet the following requirements:
(1) The obligation is the current obligation borne by the company.
(2) The implementation of the obligation may cause the economic benefits out of the enterprise.
(3) The amount of the obligation can be measured reliably.
2. Measurement Method of Estimated Liabilities
The estimated liabilities shall be made the initial measurement according to the best estimate of the expenditure required to settle the present obligation. There is the continuous scope for the required expenditure, and the best estimate with the same possibilities resulted from various outcomes within the scope shall be recognized as per the intermediate value. The best estimate should be recognize according to the following methods:
(1) The best estimate shall be recognized as per the most possible amount if there are matters involved in the single item.
(2) The best estimate shall be calculated and recognized as per the possible amount if there are matters involved in the multiple item.
If the company pays all the expenses for paying off the estimated liabilities, or partial estimates are compensated by the third party or other parties, the compensation amount should be separately recognized as the assets when the receipt of the compensation amount is basically determined. Meanwhile, the determined compensation amount shall not exceed the book value of the estimated liabilities recognized.
The company shall make review of the book value of estimated liabilities at the balance sheet date. If there is conclusive evidence that the book value cannot really reflect the current best estimate, the adjustment shall be made for the book value in accordance with the current best estimate.
37. Share payment
1.Accounting Treatment Methods of Share Payment
Share payment is a transaction which is for obtaining the service provided by employees or other parties, where thus the equity instrument is granted , or for bearing the liability confirmed basing on the equity instrument. Share payment is divided into the payment settled by equities and the payment settled by cash.
(1)Shared Payment settled by Equities
The share payment settled by equities, which is used for exchanging the service provided by employees, will be measured according to the fair value of the equity instrument granted to employees on date of grant. The amount of such fair value, under the situation that the rights can only be exercised after the service is finished and the set performance is achieved within the waiting period, and basing on the optimum estimation for the number of equity instrument which exercise rights within the waiting period, will be measured according to straight-line method and counted into
relevant costs and expenses. When the rights can be exercised immediately after being granted, the
payment will be counted into relevant costs and expenses, and the capital reserve will be increased correspondingly.
On each and every balance sheet date within the waiting period, the Company will make optimum estimations according to the newly-obtained subsequent information after the changes occurred in the number of employees who exercise rights so as to modify the predicted number of the equity instrument of exercising rights. The influence from above-mentioned estimations will be counted into relevant costs and expenses at the current period, and the corresponding adjustment will be made for the capital reserve.
If the fair value of the otherparties’ service can be reliably measured, the share-based payment settled by equities which is used for exchanging the service of other parties will be measured according to that fair value on date of acquisition. If not, but the fair value of the equity instrument can be reliably measured, the payment will be counted according to the fair value of the equity instrument on date of service acquisition, and it will be counted into relevant costs and expenses, and the equity of the shareholders will be increased correspondingly.
(2) Share Payment settled by Cash
The share payment settled by cash will be measured according to the fair value of the liability confirmed basing on the shares borne by the Company and other equity instruments. If the rights can be exercised immediately after being granted, the payment will be counted into relevant costs or expenses and the liability will be increased correspondingly. If the rights can only be exercised after the situation that service within the waiting period is completed and set performance is achieved, the service obtained at the current period,according to the fair value amount of the liability borne by the Company, and basing on the optimum estimation for the condition of exercising rights, will be counted into costs or expenses on each and every balance sheet date during the waiting period, and the liability will be increased correspondingly.
Each and every balance sheet date and settlement before relevant liability settlement, the fair value of liability will be remeasured, of which changes occurred will be counted into the current period.
2.Relevant Accounting Treatment of Modification and Termination for Share-based Payment Plan
When the Company modifies the share payment plan, if the fair value of the equity instrument granted is increased after the modification, the increase in the service obtained will be correspondingly confirmed according to the increase in the fair value of equity instrument. The increase in the fair value of equity instrument means the balance between the equity instrument before modification and the equity instrument after modification on modification date. If decrease occurred in the total fair value of the equity instrument after the modification or methods which are unbeneficial to employees are adopted in the modification, accounting treatment will still continue to be made for the service obtained, and such changes will be regarded as changes that have never occurred unless the Company has canceled partial or all equity instruments.
During the waiting period, if the granted equity instrument is cancelled, the company will treat the cancelled equity instrument as the accelerated exercise of power, and immediately include the balance that should be recognized in the remaining waiting period into the current profit and loss, and simultaneously confirm the capital reserve. If the employee or other party can choose to satisfy the non-exercisable condition but not satisfied in the waiting period, then the company will treat it as cancellation of the granted equity instrument.
3. Accounting treatment involving the share payment transaction between the Company and the shareholders or the actual controller of the Company
Where involves the share payment transaction between the Company and the shareholders or the actual controller of the Company and one of the parties of the settlement company and the service-accepting company is within the company and the other is not within the company, then the company performs the accounting treatment in the consolidated financial statements of the company according to the following provisions:
(1) If the settlement company settles in its own equity instrument, then it treats the equity payment transaction as the equity-settled equity payment; otherwise, it treats as the cash-settled equity payment.
If the settlement company is an investor to the service-accepting company, it shall be recognized as a long-term equity investment in the service-accepting company in accordance with the fair value of the equity instrument or the fair value of the liability it is assumed to bear on the grant date, and the capital reserve (other capital reserve) or liabilities shall be recognized at the same time.
(2) If the service-accepting company has no settlement obligation or confers its own equity tools on the employees of the company, then such equity payment transaction shall be treated as equity-settled equity payment; if the service-accepting company has the settlement obligation and confers the employees of the company with not its own equity instrument, then such equity payment transaction shall be treated as cash-settled equity payment;
In the case of the equity payment transaction occurs between the companies within the company, and the service-accepting company and the settlement company are not the same company, then the confirmation and measurement of the equity payment transaction shall be carried out respectively in the financial report of the service-accepting company and the settlement company, with the same analogy of the above-said principle.
38. Other financial instruments such as preferred stocks and perpetual bonds
Not applicable
39. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Whether implemented new revenue guidelines?
□ Yes√No
1. Recognition Principle of Revenue
(1) The Goods for Sale
The revenue of the goods for sale shall be recognized when the following requirements are met simultaneously: the transfer of main risks and rewards on ownership of the goods to the buyers, the continual management rights related to ownership no longer retained by the company and the effective control of the sold goods no longer implemented, the reliable measurement of the revenue amount, the possible inflow of the relevant economic benefits, and the reliable measurement of the relevant costs incurred or to be incurred.
(2) The Service Provision
If the provided services transaction results can be reliably estimated at the balance sheet date (the reliable measurement of the revenue amount, the possible inflow of the relevant economic benefits, the reliable recognition of the completion schedule of transaction, and the reliable measurement of the relevant costs incurred or to be incurred in the transaction), the company shall recognize the relevant service incomes according to the completion percentage method and recognized the completion schedule of the provided service transaction according to the proportion of the costs occurred accounting for the total estimated costs. If the provided services transaction results cannot be reliably estimated at the balance sheet date and the occurred service costs can be expected to have compensation, the company shall recognize to provide the service revenue according to the occurred service cost amount and transfer the service costs as per the same amount. If the occurred service costs cannot be expected to have compensation, the occurred service costs shall be recorded into the current profits and losses and not be recognized as the service revenue.
(3) The Abalienation of the Right to Use Assets
The revenue of abalienation of the right to use assets shall be recognized when the abalienation of the right to use assets meets the requirements of the possible inflow of the relevant economic benefits and the reliable measurement of revenue amount. The interest income shall be calculated and determined according to time and actual interest rate of the monetary capital of the company used by others, and the royalty revenue shall be measured and determined in accordance with the charging time and method appointed in the relevant contract or agree.
2. The Specific Recognition Method of Revenue
The company mainly sells the polaroid, textiles and other products. The revenue of the sale of products in domestic market shall be recognized after the following requirements are met: The company has agreed to deliver the goods to the purchaser under the contract and the revenue amount of product sales has been determined, the payment for goods has been withdrawn or the payment vouchers has been obtained and related economic benefits are likely to inflow, and the costs related to the products can be measured reliably. The revenue of the sale of products in foreign market shall be recognized after the following requirements are met: The company has made customs clearance and departure from port under the contract, the bill of landing has obtained and the revenue of the sale of products has been recognized, the payment for goods has been withdrawn or the payment vouchers has been obtained and related economic benefits are likely to inflow, and the costs related to the products can be measured reliably.
40.Government subsidy
Government grants are monetary assets and non-monetary assets that the company has obtained free of charge from the government and are divided into government grants related to assets and government grants related to income. Asset-related government grants refer to government grants obtained by the company that are used to purchase or construct or otherwise form long-term assets. Income-related government subsidies refer to government subsidies other than government subsidies related to assets.
If there is evidence at the end of the period that the company is able to meet the relevant conditions
stipulated in the financial support policy and it is expected to receive financial support funds, the government subsidies shall be recognized according to the amount receivable. In addition, government grants are confirmed upon actual receipt.
Asset-related government grants are recognized as deferred income and are charged to profit or loss for the current period in a reasonable and systematic manner over the useful life of the relevant assets. Revenue-related government subsidies, which are used to compensate for the related costs or losses of the Company in the future period, are recognized as deferred income, and are recognized in the profits and losses of the current period in the period in which the relevant costs, expenses or losses are recognized. The relevant costs, expenses or losses that have been used to compensate the Company have been directly recorded in the current profits and losses. Government grants related to the company's daily activities are included in other income; those unrelated to the daily activities of the company are included in non-operating income.
For the policy-subsidized discounted loans obtained by the company, the accounting treatment is divided into the following two cases: when the finance allocates the interest-subsidy funds to the loan bank and the loan bank provides the company with a policy-based preferential interest rate, the company uses the actual amount of the loan received as the entry value of the loan, and calculates the relevant borrowing costs according to the loan principal and the preferential policy interest rate; if the finance allocates the interest-free funds directly to the company, the company will reduce the relevant borrowing costs by the corresponding discount interest.
41.The Deferred Tax Assets / The deferred Tax Liabilities
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax basis, and the difference of the book value and the tax basis that no confirmation of assets and liabilities but able to confirm the tax basis as per the provisions of tax law. The temporary difference can be classified into the taxable temporary difference and the deductible temporary difference.
2. Recognition Basis of Deferred Tax Assets
For the deductible temporary difference, the deductible loss and the tax payment offset, the company shall recognize the deferred tax assets arising from the future taxable income that obtained to deduce the deductible temporary difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or liabilities in the transaction shall not be recognized: (1) the transaction is not the business combination. (2) the transactiondoesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary difference related to the investment of subsidiaries, cooperative enterprises and joint ventures if the following requirements are simultaneously met: (1) the temporary difference is possible to be reversed in the foreseeable future. (2) the taxable income used to offset the deductible temporary difference is possible to be obtained in the future.
3. Recognition Basis of Deferred Tax Liabilities
All the taxable temporary differences shall be recognized as the deferred tax liabilities.
But the company shall not recognize the taxable temporary differences arising from the following transactions as the deferred tax liabilities: (1) the initial recognition of goodwill. (2) the initial recognition of assets or liabilities arising from the transactions with the following features: this transaction is not the business combination, and the transactiondoesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax liabilities for the taxable temporary difference related to the investment of subsidiaries, cooperative enterprises and joint ventures. Except that the following requirements are simultaneously met: (1) the investment enterprise can control the reversal time of the temporary difference. (2) the temporary difference is possible to not be reversed in the foreseeable future.
4. Impairment of Deferred Tax Assets
The company shall review the book value of the deferred tax assets at the balance sheet date. If it is not possible to obtain sufficient taxable income for the reduction of the benefit of the deferred tax assets in the future, the book value of the deferred tax assets shall be deduced. Except that the deferred tax assets and the reduction amount are recorded into theowner’s equity when the original recognition, others shall be recorded into the current income tax expense. The book value of the deferred tax assets reduced can be recovered when sufficient taxable income is possibly obtained.
5. Income Tax Expense
The income tax expense should include the current income tax and the deferred income tax.
Other comprehensive income or the current income tax and the deferred income tax related to the transactions and items directly recorded into thestockholders’ equity, shall be recorded into other comprehensive incomes or thestockholders’ equity, and the book value of goodwill shall be adjusted by the deferred income tax arising from the business combination, but the rest of the current income tax and the deferred income tax expense or income shall be recorded into the current profits and losses.
42.Lease
1. Accounting Treatment Method of Operating Lease
When the company is as the tenant, the rental within the lease term shall be recorded into the relevant assets cost or recognized as the current profits and losses as per the line method, and the initial direct expense occurred shall be directly recorded into the current profit and loss. The contingent rental shall be recorded into the current profit and loss once the actual occurrence.
When the company is as the leaser, the rental within the lease term shall be recognized as the current profits and losses as per the line method, and the initial direct expense occurred shall be directly recorded into the current profit and loss, except that the large amounts are capitalized and recorded into the profit and loss by stages. The contingent rental shall be recorded into the current profit and loss once the actual occurrence.
2. Accounting Treatment Method of Finance Lease
When the company is as the tenant, the company shall recognize the less one between the fair value of leasing assets and the present value of minimum lease payment at the lease commencement date as the book value of rented assets, recognize the minimum lease payment as the book value of the long-term payables, and the undeterminedfiancé expense of the difference and the initial direct costs occurred shall be recorded into the leasing asset value. During each lease period, the current financing charges shall be measured and recognized by the effective interest method.
When the company is as the leaser, the company shall recognize the sum of minimum lease receivables and initial direct expense at the lease commencement date as the book value of finance lease receivables, and record the unguaranteed residual value. Meanwhile, the company shall recognize the difference between the sums of minimum lease receivables, minimum lease receivables and unguaranteed minus the sum of the present value as the unrealized financing income. During each lease period, the current financing charges shall be measured and recognized by the effective interest method.
43. Other important accounting policies and accounting estimates
Nil
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable□Not applicable
||||
|-|-|-|
||Approval||
|The content and reason for change of accounting policy||Remarks|
||process||
|In 2017, the Ministry of Finance revised and promulgated the Accounting Standards for|||
|Business Enterprises No.22-Recognition and Measurement of Financial Instruments,|||
|Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets,|||
||Adopted||
|Accounting Standards for Business Enterprises No.24-Hedge Accounting and Accounting|||
||at the||
|Standards for Business Enterprises No.37-Presentation of Financial Instruments (the above||http://www.cninfo.com.cn|
||18th||
|four standards are collectively referred to as the "New Financial Instruments Standards"),||On April|
||meeting||
|requiring enterprises listed both in China and abroad at the same time, as well as enterprises||27,2019(Announcement|
||of the 7th||
|listed abroad and using International Financial Reporting Standards or Accounting Standards||No.2019-17)|
||Board of||
|for Business Enterprises to prepare financial reports, to implement them on January 1, 2018;|||
||Directors||
|Other domestic listed enterprises are required to implement them on January 1, 2019.|||
|According to the regulations, the company will implement the new financial instrument|||
|standards from January 1, 2019 and adjust the relevant contents of accounting policies.|||
|On April 30, 2019, the Ministry of Finance issued the Notice on Revising and Issuing the|Adopted||
|||http://www.cninfo.com.cn|
|Format of Financial Statements for General Enterprises in 2019 (CK [2019] No.6)|at the||
|||On August|
|(hereinafter referred to as "CK [2019] No.6"), requiring non-financial enterprises that|20th||
|||21,2019(Announcement|
|implement the Accounting Standards for Enterprises to prepare financial statements in|meeting||
|||No.2019-38)|
|accordance with the requirements of the Accounting Standards for Enterprises and CK [2019]|of the 7th||

|||
|-|-|
|No.6. The interim financial statements and annual financial statements for enterprises in 2019|Board of|
|and the financial statements for subsequent periods shall be prepared and implemented in|Directors|
|accordance with the requirements of CK [2019] No.6.||

The Company will implement the new financial instrument standards from January 1, 2019. For the impact on the items related to the financial statements at the beginning of the year, please refer to the following "(3) Implementation of the adjustment of the new financial instrument standards, new income standards and new lease standards for the first time, and implementation of the items related to the financial statements at the beginning of the year for the first time".
Since the semi-annual financial report on June 30, 2019 and the financial reports for the following periods, the company has implemented the requirements of the CK[2019] No.6, and restated the items and amounts of the initial financial statements as follows:
||||
|-|-|-|
|The specific contents of accounting policy changes|Name of Financial StatementItems Affected|At the beginning of the consolidated balancesheet or the impact amount of theconsolidated income statement in the sameperiod last year (RMB)|
|The company will split "notes receivable andaccounts receivable" into "accounts receivable" and"notes receivable" for listing.|Notes receivable|886,432.06|
||Account receivable|528,454,015.59|
||Notes receivable and accountreceivable|-529,340,447.60|
|The company will split "notes payable andaccounts payable" into "accounts payable" and"notes payable" for listing.|Notes payable||
||Account payable|180,239,452.00|
||Notes payable and accountreceivable|-180,239,452.00|

Except for the above matters, the company's important accounting policies have not changed.
（2）Change of main accounting estimations
□ Applicable√Not applicable
（3）Implementation of the adjustment of the new financial instrument standards, new income standards and new lease standards for the first time, and implementation of the items related to the financial statements at the beginning of the year for the first time
√ Applicable□Not applicable
Consolidated balance sheet
In RMB
|||||
|-|-|-|-|
|Items|December 31,2018|January 1,2019|Adjustment amount|
|Current asset：||||
|Monetary fund|1,141,759,374.60|1,141,759,374.60||
|Settlement provision||||

|||||
|-|-|-|-|
|Outgoing call loan||||
|Transactional financial assets||540,000,000.00|540,000,000.00|
|Financial assets measured||||
|at fair value with variations||||
|accounted into current||||
|income account||||
|Derivative financial assets||||
|Notes receivable|886,432.06|886,432.06||
|Account receivable|528,454,015.59|528,454,015.59||
|Financing of receivables||||
|Prepayments|229,028,791.15|229,028,791.15||
|Insurance receivable||||
|Reinsurance receivable||||
|Provisions of Reinsurance||||
|contracts receivable||||
|Other account|14,846,896.50|||
|||14,846,896.50||
|receivable||||
|Including：Interest|5,589,704.44|||
|||5,589,704.44||
|receivable||||
|Dividend||||
|receivable||||
|Repurchasing of||||
|financial assets||||
||439,752,718.77|439,752,718.77||
|Inventories||||
|Contract assets||||
|Assets held for sales||||
|Non-current asset due within||||
|1 year||||
||639,797,959.30|99,797,959.30|-540,000,000.00|
|Other current asset||||
|Total of current assets|2,994,526,187.97|2,994,526,187.97||
|Non-current assets：||||
|Loans and payment on||||
|other’s behalf disbursed||||
|Debt investment||||
|Available for sale of|45,373,784.87|||
||||-45,373,784.80|
|financial assets||||
|Other investment on||||
|bonds||||

|||||
|-|-|-|-|
|Expired investment in||||
|possess||||
|Long-term receivable||||
|Long term share equity|32,952,085.66|||
|||32,952,085.66||
|investment||||
|Other equity instruments||||
|||241,875,289.00|241,875,289.00|
|investment||||
|Other non-current financial||||
|assets||||
||167,997,941.98|167,997,941.98||
|Property investment||||
|Fixed assets|987,876,247.55|987,876,247.55||
|Construction in progress|15,621,286.64|15,621,286.64||
|Production physical||||
|assets||||
|Oil & gas assets||||
|Use right assets||||
||37,880,815.85|37,880,815.85||
|Intangible assets||||
|Development expenses||||
|Goodwill||||
|Long-germ expenses to be|1,486,209.03|||
|||1,486,209.03||
|amortized||||
||6,036,198.23|6,036,198.23||
|Deferred income tax asset||||
||329,452,659.01|329,452,659.01||
|Other non-current asset||||
||1,624,677,228.82|1,821,178,732.95|196,501,504.13|
|Total of non-current assets||||
||4,619,203,416.79|4,815,704,920.92|196,501,504.13|
|Total of assets||||
|Current liabilities||||
|Short-term loans|411,522,111.40|411,522,111.40||
|Loan from Central Bank||||
|Borrowing funds||||
|Transactional financial||||
|liabilities||||
|Financial liabilities measured||||
|at fair value with variations||||
|accounted into current||||
|income account||||
|Derivative financial||||
|liabilities||||
|Notes payable||||

||||
|-|-|-|
|Account payable|180,239,452.90|180,239,452.90|
|Advance receipts|120,702,951.37|120,702,951.37|
|Selling of repurchased|||
|financial assets|||
|Deposit taking and|||
|interbank deposit|||
|Entrusted trading of|||
|securities|||
|Entrusted selling of securities|||
|Employees’ wage payable|32,506,267.08|32,506,267.08|
|Tax payable|7,745,128.99|7,745,128.99|
|Other account|229,015,279.98||
|||229,015,279.98|
|payable|||
|Including：Interest|39,044,044.39||
|||39,044,044.39|
|payable|||
|Dividend|||
|payable|||
|Fees and commissions|||
|payable|||
|Reinsurance fee payable|||
|Contract Liabilities|||
|Liabilities held for sales|||
|Non-current liability due|40,000,000.00||
|||40,000,000.00|
|within 1 year|||
|Other current liability|||
|Total of current liability|1,021,731,191.72|1,021,731,191.72|
|Non-current liabilities：|||
|Reserve fund for|||
|insurance contracts|||
|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|137,991,698.33|137,991,698.33||
|Deferred income tax||||
|||49,125,376.03|49,125,376.03|
|liability||||
|Other non-current liabilities||||
|Total non-current liabilities|137,991,698.33|187,117,074.36|49,125,376.03|
|Total of liability|1,159,722,890.05|1,208,848,266.08|49,125,376.03|
|Owners’ equity||||
|Share capital|511,274,149.00|511,274,149.00||
|Other equity instruments||||
|Including：preferred stock||||
|Sustainable debt||||
|Capital reserves|1,865,716,983.63|1,865,716,983.63||
|Less：Shares in stock|27,230,679.00|27,230,679.00||
|Other comprehensive income|1,339,208.41|148,715,336.51|147,376,128.10|
|Special reserve||||
|Surplus reserves|80,004,803.23|80,004,803.23||
|Common risk provision||||
|Retained profit|-57,774,473.41|-57,774,473.41||
|Total of owner’s equity|2,373,329,991.86|||
|||2,520,706,119.96|147,376,128.10|
|belong to the parent company||||
|Minority shareholders’ equity|1,086,150,534.88|1,086,150,534.88||
|Total of owners’ equity|3,459,480,526.74|3,606,856,654.84|147,376,128.10|
|Total of liabilities and|4,619,203,416.79|||
|||4,815,704,920.92|196,501,504.13|
|owners’ equity||||

Balance sheet of Parent Company
In RMB
|||||
|-|-|-|-|
|Items|December 31,2018|January 1,2019|Adjustment amount|
|Current asset：||||
|Monetary fund|85,416,567.74|85,416,567.74||
|Transactional financial assets||500,000,000.00|500,000,000.00|

|||||
|-|-|-|-|
|Financial assets measured||||
|at fair value with variations||||
|accounted into current||||
|income account||||
|Derivative financial assets||||
|Notes receivable||||
|Account receivable|541,948.21|541,948.21||
|Financing of receivables||||
|Prepayments|17,436.00|17,436.00||
|Other account receivable|13,856,382.02|13,856,382.02||
|Including：Interest|4,974,799.47|||
|||4,974,799.47||
|receivable||||
|Dividend||||
|receivable||||
|Inventories||||
|Contract assets||||
|Assets held for sales||||
|Non-current asset due||||
|within 1 year||||
||500,000,000.00||-500,000,000.00|
|Other current asset||||
||599,832,333.97|599,832,333.97||
|Total of current assets||||
|Non-current assets：||||
|Debt investment||||
|Available for sale of|15,373,784.87|||
||||-15,373,784.87|
|financial assets||||
|Other investment on||||
|bonds||||
|Expired investment in||||
|possess||||
|Long-term receivable||||
|Long term share equity|1,997,175,852.27|||
|||1,997,175,852.27||
|investment||||
|Other equity instruments||||
|||199,910,297.83|199,910,297.83|
|investment||||
|Other non-current financial||||
|assets||||
||161,053,628.71|161,053,628.71||
|Property investment||||
|Fixed assets|26,565,399.91|26,565,399.91||

|||||
|-|-|-|-|
|Construction in||||
|progress||||
|Production physical||||
|assets||||
|Oil & gas assets||||
|Use right assets||||
||1,012,374.75|1,012,374.75||
|Intangible assets||||
|Development expenses||||
|Goodwill||||
|Long-germ expenses to be||||
|amortized||||
||5,818,069.48|5,818,069.48||
|Deferred income tax asset||||
|Other non-current asset||||
||2,206,999,109.99|2,391,535,622.95|184,536,512.96|
|Total of non-current assets||||
||2,806,831,443.96|2,991,367,956.92|184,536,512.96|
|Total of assets||||
|Current liabilities||||
|Short-term loans||||
|Transactional financial||||
|liabilities||||
|Financial liabilities measured||||
|at fair value with variations||||
|accounted into current||||
|income account||||
|Derivative financial||||
|liabilities||||
|Notes payable||||
|Account payable|411,743.57|411,743.57||
|Advance receipts|639,024.58|639,024.58||
|Contract Liabilities||||
|Employees’ wage payable|9,760,306.51|9,760,306.51||
|Tax payable|5,494,627.33|5,494,627.33||
|Other account|141,746,352.67|||
|||141,746,352.67||
|payable||||
|Including：Interest||||
|payable||||
|Dividend||||
|payable||||

|||||
|-|-|-|-|
|Liabilities held for sales||||
|Non-current liability due||||
|within 1 year||||
|Other current liability||||
|Total of current liability|158,052,054.66|158,052,054.66||
|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|700,000.00|700,000.00||
|Deferred income tax||||
|||46,134,128.24|46,134,128.24|
|liability||||
|Other non-current liabilities||||
|Total non-current liabilities|700,000.00|46,834,128.24|46,134,128.24|
|Total of liability|158,752,054.66|204,886,182.90|46,134,128.24|
|Owners’ equity||||
|Share capital|511,274,149.00|511,274,149.00||
|Other equity instruments||||
|Including：preferred stock||||
|Sustainable debt||||
|Capital reserves|1,599,025,454.96|1,599,025,454.96||
|Less：Shares in stock|27,230,679.00|27,230,679.00||
|Other comprehensive income|1,339,208.41|139,741,593.13|138,402,384.72|
|Special reserve||||
|Surplus reserves|80,004,803.23|80,004,803.23||
|Retained profit|483,666,452.70|483,666,452.70||
|Total of owners’ equity|2,648,079,389.30|2,786,481,774.02|138,402,384.72|
|Total of liabilities and|2,806,831,443.96|||
|||2,991,367,956.92|184,536,512.96|
|owners’ equity||||

（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards Governing Financial Instruments or Leases
□ Applicable√Not applicable
45.Other
Nil
VI.Taxes of the Company
1. Main taxes categories and tax rate
||||
|-|-|-|
|Taxes|Tax references|Applicable tax rates|
|VAT|The taxable turnover|16%，13%，5%|
|City construction tax|Turnover tax to be paid allowances|7%|
|Business income tax|Turnover tax to be paid allowances|25%，16.5%，15%|
|Education surcharge|Turnover tax to be paid allowances|3%|
|Local education surcharge|Turnover tax to be paid allowances|2%|

In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the
information
|||
|-|-|
|Name of taxpayer|Income tax rates|
|Shenzhen Shengbo Optoelectronic Technology Co., Ltd.|15%|
|Shengtou（HK）Co., Ltd.|16.5%|

2. Tax preference and approval file
(1)Shenzhen Shengbo Optoelectronic Technology Co., Ltd., the subsidiary company of our company, has been qualified as national high-tech enterprise since 2016 ,High-tech and enterprise certificate No.: GR201644201276 ,The certificate is valid for three years, The enterprise income tax rate of this year is15%.
(2).In accordance with relevant provisions of the Notice of Ministry of Finance, General Administrati on of Customs and State Taxation Administration Regarding Tax Preference Policies for Further Supp orting the Development of New-type Display Device Industry (Cai Guan Shui (2016) No. 62), Shenz hen Shengbo Optoelectronic Technology Co., Ltd. manufactured key materials and parts for the upstr eam industry of new-type display devices including colorful light filter coating and polarizer sheet tha t comply with the planning for independent development of domestic industries may enjoy the prefere ntial policies of exemption from import tariff for the import of raw materials and consumables for the
purpose of self use and production that can not be produced domestically from January 1, 2016 and D
ecember 31, 2020.
3.Other
Nil
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Cash at hand|10,934.20|13,559.60|
|Bank deposit|260,939,206.53|1,137,431,239.39|
|Other monetary funds|158,277,057.87|4,314,575.61|
|Total|419,227,198.60|1,141,759,374.60|
|Including : The total amount of deposit|||
||3,516,279.32|9,294,408.13|
|abroad|||

Other notes
Note:① Ending amount of other monetary funds was RMB 4,310,530.42 And deposit an investment of RMB 4045.19.
②As of June 30,2019，The fixed-term deposit balance of money fund is RMB 163,680,930.25 , this part will not be treated as closing cash or closing cash equivalent in preparing cash flow statement. 2. Transactional financial assets
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|financial assets measured at their fair|||
|values and with the variation included in|760,000,000.00|540,000,000.00|
|the current profits and losses|||
|Including：|||
|Designation of financial assets measured at|||
|their fair values and with the variation|||
|included in the current profits and losses|||
|Including：|||
|Total|760,000,000.00|540,000,000.00|

3. Derivative financial assets
Not applicable
4. Notes receivable
(1) Notes receivable listed by category
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Bank acceptance|31,079,249.92|886,432.06|
|Total|31,079,249.92|886,432.06|

 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 debtprovision：Nil
Of which the significant actual write-off accounts receivable:
□ Applicable√ Not applicable
（3）Notes receivable pledged by the Company at the end of the period
In RMB
|||
|-|-|
|Items|Pledged amount|
|Bank acceptance|0.00|
|Total|0.00|

（4）Notes receivable which had endorsed by the Company or had discounted and had not due on the balance sheet date at the period-end
In RMB
||||
|-|-|-|
||Amount of recognition termination at the|Amount of not terminated recognition at|
|Items|||
||period-end|the period-end|
|Bank acceptance|46,707,583.37|0.00|
|Total|46,707,583.37|0.00|

（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or agreement
Not applicable
（6） The actual write-off accounts receivable
Not applicable
5. Account receivable
(1)Classification account receivables.
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year-begin|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Category|||||Book||||||
|||Proportio||Proportio|||Proportio||Proportio|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n(%)||n(%)|||n(%)||n(%)||
|Accrual of bad debt|||||||||||
||13,247,0||9,454,40||3,792,678|13,233,46||9,436,550||3,796,913.9|
|provision by single||2.49%||71.37%|||2.34%||71.31%||
||84.82||6.18||.64|4.33||.41||2|
|item|||||||||||
|Including：|||||||||||
|Accounts receivable|||||||||||
|of individual|||||||||||
|significance and|6,300,45||3,998,20||2,302,254|6,300,455||3,998,201||2,302,254.0|
|||1.18%||63.46%|||1.11%||63.46%||
|subject to individual|5.84||1.79||.05|.84||.79||5|
|impairment|||||||||||
|assessment|||||||||||
|Accounts receivable|||||||||||
|of individual|||||||||||
|insignificance but|6,946,62||5,456,20||1,490,424|6,933,008||5,438,348||1,494,659.8|
|||1.31%||78.54%|||1.23%||78.44%||
|subject to individual|8.98||4.39||.59|.49||.62||7|
|impairment|||||||||||
|assessment|||||||||||
|Accrual of bad debt|||||||||||
||519,241,||25,980,9||493,260,5|552,278,6||27,621,58||524,657,10|
|provision by||97.51%||5.00%|||97.66%||5.00%||
||524.88||61.95||62.93|88.56||6.89||1.67|
|portfolio|||||||||||
|Including：|||||||||||
||532,488,||35,435,3||497,053,241.57|565,512,1||37,058,13||528,454,01|
|Total||100.00%||6.65%|||100.00%||6.55%||
||609.70||68.13|||52.89||7.30||5.59|

Accrual of bad debt provision by single item:9,454,406.18 yuan
In RMB
||||||
|-|-|-|-|-|
||Closing balance||||
|Name|||||
||Book balance|Bad debt provision|Proportion|Reason|
|||||Beyond the credit period|
|Dongguan Fair LCD Co.,|||||
||1,695,947.73|1,695,947.73|100.00%|for a long time, uncertain|
|Ltd.|||||
|||||recovered.|
|||||Beyond the credit period|
|Guangdong Ruili Baolai|||||
||1,348,965.36|674,482.68|50.00%|for a long time, uncertain|
|Technology Co., Ltd.|||||
|||||recovered.|
|||||Beyond the credit period|
|Dongguan Yaxing|||||
||3,255,542.75|1,627,771.38|50.00%|for a long time, uncertain|
|Semiconductor Co., Ltd.|||||
|||||recovered.|
|Huangshan Zhongxian||||Beyond the credit period|
|Microelectronics Co.,|904,518.00|452,259.00|50.00%|for a long time, uncertain|
|Ltd.||||recovered.|
|Mianyang Zijin New||||Beyond the credit period|
|Material Technology Co.,|598,226.43|598,226.43|100.00%|for a long time, uncertain|
|Ltd.||||recovered.|
|Shanghai Weizhou||||Beyond the credit period|
|Microelectroniics|525,471.80|525,471.80|100.00%|for a long time, uncertain|
|Technology Co., Ltd.||||recovered.|
|Shenzhen Chuangyu||||Beyond the credit period|
|Display Technology Co.,|487,288.00|243,644.00|50.00%|for a long time, uncertain|
|Ltd.||||recovered.|
|||||Beyond the credit period|
|Dongguan Jiaxian|||||
||486,510.50|486,510.50|100.00%|for a long time, uncertain|
|Electronic Co., ltd.|||||
|||||recovered.|
|Shenzhen Guanguan||||Beyond the credit period|
|Lida Microelectronic|475,399.34|237,699.67|50.00%|for a long time, uncertain|
|Co., Ltd.||||recovered.|
|||||Beyond the credit period|
|Jilin Lianbei Optical|||||
||443,768.72|221,884.36|50.00%|for a long time, uncertain|
|Technology Co., Ltd.|||||
|||||recovered.|
|||||Beyond the credit period|
|Hefei Guoyun Electronic|||||
||396,539.19|396,539.19|100.00%|for a long time, uncertain|
|Technology Co., Ltd.|||||
|||||recovered.|
|||||The Individual amount is|
|Other|2,628,907.00|2,293,969.44|87.26%||
|||||small，Beyond the credit|
|||||period for a long time,|

||||||
|-|-|-|-|-|
|||||uncertain recovered.|
|Total|13,247,084.82|9,454,406.18|--|--|

 Accrual of bad debt provision by portfolio:25,980,961.95 yuan
In RMB
|||||
|-|-|-|-|
||Closing balance|||
|Name||||
||Book balance|Bad debt provision|Proportion|
|Within 1 year|518,978,068.05|25,948,903.41|5.00%|
|1-2 years|234,892.53|23,489.25|10.00%|
|2-3 years|28,564.30|8,569.29|30.00%|
|Over 3 years|||50.00%|
|Total|519,241,524.88|25,980,961.95|--|

 Notes of the basis of recognizing the group: The combination of the ageing status of accounts
receivable as a credit risk feature.
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）|518,978,068.05|
|Including：Subtotal within 1 year|518,978,068.05|
|1-2 years|234,892.53|
|2-3 years|737,059.92|
|Over 3 years|12,538,589.20|
|3-4 years|940,955.57|
|4-5 years|5,171,125.69|
|Over 5 years|6,426,507.94|
|Total|532,488,609.70|

 (2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debtprovision：
In RMB
|||||||
|-|-|-|-|-|-|
|||Amount of change in the current period||||
|Category|Opening balance||Reversed or|Write-|Closing balance|
|||Accrual||||
||||collected amount|off||

||||||
|-|-|-|-|-|
|Accrual of bad debt provision by portfolio:|27,621,586.89||1,640,624.94|25,980,961.95|
|Accrual of bad debt provision by single item:|9,436,550.41|17,855.77||9,454,406.18|
|Total|37,058,137.30|17,855.77|1,640,624.94|35,435,368.13|

 (3) The actual write-off accounts receivable
Nil
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
|||||||
|-|-|-|-|-|-|
|Name|Nature|Balance inyear-end|Aging|Proportion(%)|Bad debt provision|
|First|Goods|196,533,056.38|Within 1 year|36.91|98,266,528.19|
|Second|Goods|85,255,501.33|Within 1 year|16.01|42,627,750.67|
|Third|Goods|44,711,746.41|Within 1 year|8.4|22,355,873.21|
|Fourth|Goods|42,398,221.61|Within 1 year|7.96|21,199,110.81|
|Fifth|Goods|24,205,117.48|Within 1 year|4.55|12,102,558.74|
|Total||39313,643.21||73.82|196,551,821.61|

（5）Account receivable which terminate the recognition owning to the transfer of the financial assets Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
Nil
6. Financing of receivables
Changes in the current period of receivables financing and fair value
□ Applicable√ Not applicable
Relevant information of the financing 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
7.Prepayments
(1) List by aging analysis:
In RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Aging|||||
||Amount|Proportion %|Amount|Proportion %|
|Within 1 year|132,181,990.10|98.25%|226,726,744.30|98.99%|

||||||
|-|-|-|-|-|
|1-2 years|2,313,164.78|1.72%|2,263,886.85|0.99%|
|Over 3 years|38,160.00|0.03%|38,160.00|0.02%|
|Total|134,533,314.88|--|229,028,791.15|--|

 Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time
Nil
（2）The ending balance of Prepayments owed by the imputation of the top five parties
||||
|-|-|-|
|Name|Balance in year-end|Proportion %|
|First|48,688,000.00|36.19|
|Second|48,600,000.00|36.12|
|Third|15,989,512.58|11.89|
|Fourth|5,460,517.24|4.06|
|Fifth|3,011,939.75|2.24|
|Total|121,749,969.57|90.50|

Other notes: Nil
8.Other receivable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Interest receivable|7,067,282.69|5,589,704.44|
|Other accounts receivable|7,498,823.53|9,257,192.06|
|Total|14,566,106.22|14,846,896.50|

（1）Interest receivable
1) Category of interest receivable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Fixed deposit|867,156.10|1,302,963.56|
|Structure deposit|6,200,126.59|4,286,740.88|
|Total|7,067,282.69|5,589,704.44|

2) Significant overdue interest
Nil
3）Bad-debt provision
□ Applicable√ Not applicable
(2)Dividend receivable
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|
|Customs bond||101,758.24|
|Export rebate|1,556,952.58|3,140,110.71|
|Unit account|14,957,706.87|15,451,643.71|
|Deposit|1,454,844.79|1,875,008.00|
|Reserve fund and staff loans|723,581.27|506,154.77|
|Other|4,540,265.50|4,227,892.82|
|Total|23,233,351.01|25,302,568.25|

2）Bad-debt provision
In RMB
||||||
|-|-|-|-|-|
||Stage 1|Stage 2|Stage 3||
||Expected credit||Expected credit losses for||
|Bad Debt Reserves||Expected credit loss over||Total|
||losses over the next||the entire duration (credit||
|||life (no credit impairment)|||
||12 months||impairment occurred)||
|Balance as at January 1,|||||
|||1,652,090.82|14,393,285.37|16,045,376.19|
|2019|||||
|Balance as at January 1,|||||
||——|——|——|——|
|2019 in current|||||
|Turn back in the current|||||
|||310,848.71||310,848.71|
|period|||||
|Balance as at June 30||1,341,242.11|14,393,285.37|15,734,527.48|

Loss provision changes in current period, change in book balance with significant amount
□ Applicable√Not applicable
Disclosure by aging
In RMB
|||
|-|-|
|Aging|Closing balance|
|Within 1 year(Including 1 year）|6,151,387.34|
|Including：Subtotal within 1 year|6,151,387.34|
|1-2 years|659,376.54|
|2-3 years|2,034,578.96|
|Over 3 years|14,388,008.17|
|3-4 years|600,709.97|
|4-5 years|625,372.54|
|Over 5 years|13,161,925.66|
|Total|23,233,351.01|

 3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debtprovision：
In RMB
||||||
|-|-|-|-|-|
|||Amount of change in the current period|||
|Category|Opening balance||Reversed or collected|Closing balance|
|||Accrual|||
||||amount||
|Accrual of bad debt|||||
||1,652,090.82||310,848.71|1,341,242.11|
|provision by portfolio|||||
|Accrual of bad debt|||||
||14,393,285.37|||14,393,285.37|
|provision by single item|||||
|Total|16,045,376.19||310,848.71|15,734,527.48|

 The company's provision for bad debts of other receivables is based on the expected loss method, and the credit loss of other receivables is expected throughout the duration. For other receivables with similar risk characteristics, the company combines them according to aging status, and the expected credit loss rate corresponding to aging is shown in this Section V, Important Accounting Policies and Other Receivables in Accounting Estimates; At the end of the period, other receivables that have objective evidence of impairment are individually tested for impairment, and impairment losses are recognized and provision for bad debts is made according to the difference between the present value of the estimated future cash flow and its book value.
As of the end of the reporting period, the balance of other receivables combined by aging and provision for bad debts are shown in the following table:
|||||
|-|-|-|-|
|Aging|Closing balance|||
||238,838,915.04|Provision for bad debts|Expected loss rate（%）|
|Within 1 year|6,151,387.34|307,569.37|5.00|
|1-2 years|659,376.54|65,937.65|10.00|

|||||
|-|-|-|-|
|2-3 years|234,578.96|70,373.69|30.00|
|Over 3 years|1,794,722.80|897,361.40|50.00|
|Total|8,840,065.64|1,341,242.11||

(4) Other account receivables actually cancel after write-off
Nil
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
|||||||
|-|-|-|-|-|-|
|||||Portion in total other|Bad debt provision|
|Name|Nature|Year-end balance|Age|||
|||||receivables(%)|of year-end balance|
|First|Unit account|11,389,044.60|Over 5 years|49.02%|11,389,044.60|
|Second|Estimated tax|2,857,902.98|Within 1 year|12.30%|142,895.15|
|Third|Unit account|1,800,000.00|2-3 years|7.75%|1,800,000.00|
|Fourth|Export rebate|1,556,952.58|Within 1 year|6.70%|77,847.63|
|Fifth|Deposit|980,461.06|Over 5 years|4.22%|490,230.53|
|Total|--|18,584,361.22|--|79.99%|13,900,017.91|

 (6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts receivable
Nil
9.Inventory
Whether implemented new revenue guidelines?
□Yes√ No
（1）Inventories types
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|

||||||||
|-|-|-|-|-|-|-|
||Book balance|Provision for bad|Book value|Book balance|Provision for bad|Book value|
|||debts|||debts||
|Raw materials|205,355,616.56|8,721,102.80|196,634,513.76|164,096,057.16|14,452,368.67|149,643,688.49|
|Processing|||||||
||8,955,036.59||8,955,036.59|3,895,184.01||3,895,184.01|
|products|||||||
|Stock goods|377,999,151.32|68,425,166.10|309,573,985.22|360,461,266.75|74,247,420.48|286,213,846.27|
|Total|592,309,804.47|77,146,268.90|515,163,535.57|528,452,507.92|88,699,789.15|439,752,718.77|

 Whether the company is required to comply with the "Shenzhen Stock Exchange Industry
Information Disclosure Guidelines No. 4 - listed companies engaged in seed industry, planting
business" disclosure requirements
No
（2）Inventory Impairment provision
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Increase||Decrease|||
||Year-beginning||||||
|Items||||Reverse or||Year-end balance|
||balance|Withdrawal|Other||Other||
|||||write-off|||
|Raw materials|14,452,368.67|2,995,690.34||8,726,956.21||8,721,102.80|
|Processing|||||||
||74,247,420.48|18,998,617.05||24,820,871.43||68,425,166.10|
|products|||||||
|Stock goods|88,699,789.15|21,994,307.39||33,547,827.64||77,146,268.90|
|Total|||||||

(3) Description of The closing balance of inventories contain the amount of borrowing costs capitaliz ed
Not applicable
(4) Completed unsettled assets formed from the construction contact at the period-end
Not applicable
10.Contact assets
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 contract assets is accrued according to the general model of expected credit loss:
□ Applicable√ Not applicable
Provision for impairment of contract assets in the current period
Not applicable
11. Assets divided as held-to-sold
Not applicable
12. Non-current assets due within 1 year
Not applicable
13. Other current assets
Whether implemented new revenue guidelines?
□ Yes√No
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|After the deduction of input VAT|89,787,160.89|99,797,959.30|
|Total|89,787,160.89|99,797,959.30|

 Othernotes：Nil
14.Creditor's right investment
Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable√ Not applicable
15.Other creditor's rights investment
Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable√ Not applicable
16. Long-term accounts receivable
(1) List of long-term accounts receivable
Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable√ Not applicable
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the
financial assets
Not applicable
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term accounts receivable
Not applicable
17. Long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase /decrease||||||||||
||||||||||||Closing|
|||||Profits||||||||
||||||||Cash|Withdraw|||balance|
|||||and losses||||||||
|Investees|Opening|Additiona|Decrease|on|Other||bonus or|al of||Closing|of|
|||||investmen||Changes||||||
||balance|l|in|ts|comprehe|in other|profits|impairme|Other|balance|impairme|
|||investmen|investmen||nsive|||||||
|||t|t|Recogniz|income|equity|announce|nt|||nt|
|||||ed under||||||||
||||||||d to issue|provision|||provision|
|||||the equity||||||||
|||||method||||||||
|I. Joint ventures||||||||||||
|Shenzhen||||||||||||
|Haohao||||||||||||
||5,641,139|||637,149.7|||2,000,000|||4,278,289||
|Property||||||||||||
||.93|||2|||.00|||.65||
|Leasing||||||||||||
|Co., Ltd.||||||||||||
|Anhui||||||||||||
|Huapeng|11,784,62|||-912,673.||||||10,871,95||
|Textile|6.51|||03||||||3.48||
|Co.,Ltd.||||||||||||
|Shenzhen||||||||||||
|Guanhua||||||||||||
|||65,503,36||-520,438.|||||67,584,49|132,567,4||
|Printing||||||||0.00||||
|||0.10||51|||||7.83|19.42||
|& Dyeing||||||||||||
|Co., Ltd.||||||||||||
||17,425,76|65,503,36||-795,961.|||2,000,000||67,584,49|147,717,6||
|Subtotal||||||||||||
||6.44|0.10||83|||.00||7.83|62.55||
|2. Affiliated Company||||||||||||
|Shenzhen||||||||||||
|Changlian||||||||||||
|fa|2,234,057|||||||||2,316,173||
|||||82,115.91||||||||
|Printing|.19|||||||||.10||
|& dyeing||||||||||||
|Company||||||||||||
|Jordan|2,363,614|||-202,853.|674,303.1|||||2,835,064||
|Garment|.70|||11|7|||||.76||

|||||||||
|-|-|-|-|-|-|-|-|
|Factory||||||||
|Hongkon||||||||
|g Yehui||||||||
||10,928,64||-197,358.|132,938.3|||10,864,22|
|Internatio||||||||
||7.33||53|7|||7.17|
|nal Co.,||||||||
|Ltd.||||||||
||15,526,31||-318,095.|807,241.5|||16,015,46|
|Subtotal||||||||
||9.22||72|4|||5.03|
||32,952,08|65,503,36|-1,114,05|807,241.5|2,000,000.00|67,584,49|163,733,1|
|Total||||||||
||5.66|0.10|7.55|4||7.83|27.58|

 18. Other equity instruments investment
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Fuao auto parts co., Ltd.|6,444,721.42|5,119,896.46|
|Shenzhen Guanhua Printing & Dyeing Co.,|||
|||432,981.70|
|Ltd|||
|Union Development Group Co., Ltd.|152,493,600.00|152,493,600.00|
|Shenzhen Xiangjiang Trade Co., Ltd.|1,559,890.79|1,559,890.79|
|Shenzhen Xinfang Knitting Co., Ltd.|2,227,903.00|2,227,903.00|
|Shenzhen Dailishi Underwear Co., Ltd.|12,315,939.61|12,315,939.61|
|Shenzhen South Textile Co., Ltd.|13,464,991.17|13,464,991.17|
|Shenzhen Xieli Auto Co., Ltd.|25,760,086.27|25,760,086.27|
|Changxing Junying Investment Partnership|28,500,000.00|28,500,000.00|
|Total|242,767,132.26|241,875,289.00|

 Itemized disclosure of the current non - trading equity instrument investment
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Accumulatinglosses||Reasons for being||
|||||Amount of other|measured at fair|Reasons for other|
|||||comprehensive|value and whose|comprehensive|
||Recognized|Accumulating|||||
|Name||||income|changes are|income|
||dividend income|income|||||
|||||transferred to|included in other|transferred to|
|||||retained earnings|comprehensive|retained earning|
||||||income||
|Fuao auto parts|||||Long-term||
||739,299.75|2,064,124.71|||||
|co., Ltd.|||||holding||

|||||
|-|-|-|-|
|Union||||
||||Long-term|
|Development|20,244,553.13|170,138,153.13||
||||holding|
|Group Co., Ltd.||||
|Shenzhen||||
||||Long-term|
|Xiangjiang Trade|1,087,413.21|2,487,304.00||
||||holding|
|Co., Ltd.||||
|Shenzhen||||
||||Long-term|
|Xinfang Knitting|200,000.00|1,903,903.00||
||||holding|
|Co., Ltd.||||
|Shenzhen||||
|Dailishi|||Long-term|
||500,000.00|10,256,083.35||
|Underwear Co.,|||holding|
|Ltd.||||
|Shenzhen South|||Long-term|
||13,171,837.71|24,604,164.08||
|Textile Co., Ltd.|||holding|
|Shenzhen Xieli|||Long-term|
||1,810,409.14|23,326,789.97||
|Auto Co., Ltd.|||holding|
|Changxing||||
|Junying|||Long-term|
||2,150,943.40|2,150,943.40||
|Investment|||holding|
|Partnership||||

19.Other non-current assets
Not applicable
20. Investment property
(1) Investment property 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|||||
||309,234,260.74|||309,234,260.74|
|period-beginning|||||
|2.Increase in the|||||
|current period|||||
|(1) Purchase|||||
|（2）Inventory\Fixed|||||

||||
|-|-|-|
|assets\ Transferred from|||
|construction in progress|||
|(3)Increased of|||
|Enterprise Combination|||
|3.Decreased amount of|||
||52,051,000.00|52,051,000.00|
|the period|||
|（1）Dispose|||
|（2）Other out|52,051,000.00|52,051,000.00|
|4. Balance at period-end|257,183,260.74|257,183,260.74|
|II.Accumulated|||
|amortization|||
|1.Opening balance|141,236,318.76|141,236,318.76|
|2.Increased amount of|||
||3,872,485.12|3,872,485.12|
|the period|||
|(1) Withdrawal|3,872,485.12|3,872,485.12|
|3.Decreased amount of|||
||4,120,704.04|4,120,704.04|
|the period|||
|（1）Dispose|||
|（2）Other out|4,120,704.04|4,120,704.04|
|4. Balance at|||
||140,988,099.84|140,988,099.84|
|period-end|||
|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||116,195,160.90|
||116,195,160.90||
|-end|||
|2.Book value at|||
||167,997,941.98|167,997,941.98|
|period-beginning|||

(2) Details of fixed assets failed to accomplish certification of property
□ Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
Not applicable
21. Fixed assets
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Fixed assets|934,227,780.28|987,876,247.55|
|Liquidation of fixed assets|8,472.84||
|Total|934,236,253.12|987,876,247.55|

 (1) List of long-term accounts receivable
In RMB
|||||||
|-|-|-|-|-|-|
|||Machinery||||
|Items|Houses & buildings||Transportations|Other equipment|Total|
|||equipment||||
|I. Original price||||||
|1.Opening balance|548,584,026.60|1,011,061,597.26|9,997,715.53|30,466,523.80|1,600,109,863.19|
|2.Increased amount||||||
||254,545.45|1,253,362.07|303,879.37|733,738.03|2,545,524.92|
|of the period||||||
|(1) Purchase|254,545.45|55,172.42||140,143.83|449,861.70|
|(2) Transferred fro||||||
|m construction in pr||1,198,189.65|303,879.37|593,594.20|2,095,663.22|
|ogress||||||
|(3)Increased of||||||
|Enterprise||||||

|||||||
|-|-|-|-|-|-|
|Combination||||||
|3.Decreased amount||||||
|||1,488,857.00||114,940.62|1,603,797.62|
|of the period||||||
|（1）Disposal||1,488,857.00||114,940.62|1,603,797.62|
|4. Balance at||||||
||548,838,572.05|1,010,826,102.33|10,301,594.90|31,085,321.21|1,601,051,590.49|
|period-end||||||
|II. Accumulated||||||
|depreciation||||||
|1.Opening balance|130,575,792.68|459,920,510.02|3,719,028.75|17,008,251.34|611,223,582.79|
|2.Increased amount||||||
||9,785,532.00|44,646,776.21|353,654.09|1,315,398.38|56,101,360.68|
|of the period||||||
|(1) Withdrawal|9,785,532.00|44,646,776.21|353,654.09|1,315,398.38|56,101,360.68|
|3.Decrease in the||||||
|||1,419,244.29||91,921.82|1,511,166.11|
|reporting period||||||
|（1）Disposal||1,419,244.29||91,921.82|1,511,166.11|
|4.Closing balance|140,361,324.68|503,148,041.94|4,072,682.84|18,231,727.90|665,813,777.36|
|III. Impairment||||||
|provision||||||
|1.Opening balance|1,004,032.85|||6,000.00|1,010,032.85|
|2.Increase in the||||||
|reporting period||||||
|（1）Withdrawal||||||
|3.Decrease in||||||
|the reporting period||||||
|（1）Disposal||||||
|4. Closing balance|1,004,032.85|||6,000.00|1,010,032.85|
|IV. Book value||||||
|1.Book value of the||||||
||407,473,214.52|507,678,060.39|6,228,912.06|12,847,593.31|934,227,780.28|
|period-end||||||
|2.Book value of the|417,004,201.07|551,141,087.24|6,278,686.78|13,452,272.46|987,876,247.55|

||
|-|
|period-begin|

(2) Fixed assets temporarily idled
Not applicable
(3) Fixed assets rented by finance leases
Not applicable
(4) Fixed assets leased in the operating leases
Not applicable
(5) Fixed assets without certificate of title completed
Not applicable
（6）Liquidation of fixed assets
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Scrap cleaning of Composite Printer|8,472.84|0.00|
|Total|8,472.84||

22. Construction in progress
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Construction in progress|||
||94,993,015.59|15,621,286.64|
|Total|94,993,015.59|15,621,286.64|

 (1) List of construction in progress
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items|||||||
||Book balance|Provision for|Book Net value|Book balance|Provision for|Book Net value|
|||devaluation|||devaluation||
|Industrialization|85,275,840.93||85,275,840.93|9,080,815.92||9,080,815.92|

||||||
|-|-|-|-|-|
|project ofpolaroid for superlarge size TV|||||
|Other|9,717,174.66|9,717,174.66|6,540,470.72|6,540,470.72|
|Total|94,993,015.59|94,993,015.59|15,621,286.64|15,621,286.64|

（2）Changes of significant construction in progress
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Includin|||
||||||||||Capitalis|g：|||
|||Amountat yearbeginning||Transferr|||||ation of|Current|Capitalis||
||||Increase|||Balance|||||||
|||||ed to|Other||Proporti|Progress|interest|amount|ation of|Source|
|Name|Budget||at this|||in|||||||
|||||fixed|decrease||on(%)|of work|accumul|of|interest|of funds|
||||period|||year-end|||||||
|||||assets|||||ated|capitaliz|ratio（%)||
||||||||||balance|ation of|||
|||||||||||interest|||
|2500mm|||||||||||||
|width|1,959,50|9,080,81|76,195,0|||85,275,8|||||||
|||||||||||||Other|
|producti|||||||||||||
||0,000.00|5.92|25.01|||40.93|||||||
|on line|||||||||||||
||1,959,50|9,080,81|76,195,0|||85,275,8|||||||
|Total|||||||||||||
||||||||--|--||||--|
||0,000.00|5.92|25.01|||40.93|||||||

（3）Impairment provision of construction projects
Not applicable
（4）Engineering material
Not applicable
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√ Inapplicable
25. Right to use assets
Not applicable
26. Intangible assets
(1) Information
In RMB
|||||||
|-|-|-|-|-|-|
||||Non-proprietary|||
|Items|Land use right|Patent right||Software|Total|
||||technology|||
|I. Original price||||||
|1. Balance at period-beginning|48,822,064.61|11,825,200.00||2,936,607.54|63,583,872.15|
|2.Increase in the current period||||||
|(1) Purchase||||||
|（2）Internal R & D||||||
|（3）Increased of Enterprise||||||
|Combination||||||
|3.Decreased amount of the period|563,825.61||||563,825.61|
|（1）Disposal||||||
|（2）Other|563,825.61||||563,825.61|
|4. Balance at period-end|48,258,239.00|11,825,200.00||2,936,607.54|63,020,046.54|
|II.Accumulated amortization||||||
|1. Balance at period-beginning|12,243,972.52|11,825,200.00||1,633,883.78|25,703,056.30|
|2. Increase in the current period|463,884.36|||225,607.57|689,491.93|
|(1) Withdrawal|463,884.36|||225,607.57|689,491.93|
|3.Decreased amount of the period|563,825.61||||563,825.61|
|（1）Disposal||||||
|（2）Other|563,825.61||||563,825.61|
|4. Balance at period-end|12,144,031.27|11,825,200.00||1,859,491.35|25,828,722.62|
|III. Impairment provision||||||
|1. Balance at period-beginning||||||
|2. Increase in the current period||||||
|(1) Withdrawal||||||

|||||
|-|-|-|-|
|3.Decreased amount of the period||||
|（1）Disposal||||
|4. Balance at period-end||||
|4. Book value||||
|1.Book value at period -end|36,114,207.73|1,077,116.19|37,191,323.92|
|2.Book value at period-beginning|36,578,092.09|1,302,723.76|37,880,815.85|

 The proportion the intangible assets formed from the internalR&D through the Company amount the balance of the intangible assets at the period-end.
(2) Details of fixed assets failed to accomplish certification of land use right
Not applicable
27.R&D expenses
Not applicable
28. Goodwill
(1) Original book value of goodwill
In RMB
||||||
|-|-|-|-|-|
|Name of the investees or the events formed goodwill|Opening balance|Increase|Decrease|Closing balance|
|Shenzhen Beauty Century Garment Co., Ltd.|||||
||2,167,341.21|||2,167,341.21|
|Shenzhen Shenfang Import and Export Co., Ltd.|||||
||82,246.61|||82,246.61|
|Shenzhen Shengbo Optoelectronic Technology Co., Ltd|||||
||9,614,758.55|||9,614,758.55|
|Total|11,864,346.37|||11,864,346.37|

（2）Impairment of goodwill
In RMB
||||||
|-|-|-|-|-|
||Balance in|Increased at|.Decreased at||
|Investee||||Balance in year-end|
||year-begin|this period|this period||
|Shenzhen Beauty Century Garment Co., Ltd.|||||
||2,167,341.21|||2,167,341.21|
|Shenzhen Shenfang Import and Export Co., Ltd.|||||
||82,246.61|||82,246.61|
|Shenzhen Shengbo Optoelectronic Technology Co., Ltd|||||
||9,614,758.55|||9,614,758.55|

||||
|-|-|-|
|Total|11,864,346.37|11,864,346.37|

 29. Long term amortize expenses
In RMB
|||||||
|-|-|-|-|-|-|
||||Amortized expenses|||
||Balance in|Increase in this||||
|Items||||Other loss|Balance in year-end|
||year-begin|period||||
|Renovation fee|985,691.64|1,394,907.13|290,327.30|0.00|2,090,271.47|
|Other|500,517.39|44,606.09|60,251.68||484,871.80|
|Total|1,486,209.03|1,439,513.22|350,578.98||2,575,143.27|

 30. Deferred income tax assets/deferred income tax liabilities
（1）Details of the un-recognized 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|
|Assets depreciation|||||
||18,727,722.20|4,681,930.55|18,197,325.09|4,549,331.27|
|reserves|||||
|Unattained internal sales|||||
||2,546,979.00|382,046.85|2,591,536.27|388,730.44|
|profits|||||
|Temporary difference|||||
|formed by the interest of|||||
||||571,844.26|142,961.06|
|share incentive|||||
|repurchase|||||
|Changes in fair value of|||||
|available for sale|2,495,876.89|623,969.22|3,820,701.85|955,175.46|
|financial assets|||||
|Total|23,770,578.09|5,687,946.62|25,181,407.47|6,036,198.23|

 (2)Details of the un-recognized deferred income tax liabilities
In RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Items|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|liabilities|difference|liabilities|
|Changes in fair value of|264,086,001.96|66,021,500.49|196,501,504.12|49,125,376.03|

||||||
|-|-|-|-|-|
|investments in otherequity instruments|||||
|Total|264,086,001.96|66,021,500.49|196,501,504.12|49,125,376.03|

 (3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
||||||
|-|-|-|-|-|
||||Trade-off between the|Opening balance of|
||Trade-off between the|End balance of deferred|||
||||deferred income tax|deferred income tax|
|Items|deferred income tax|income tax assets or|||
||||assets and liabilities at|assets or liabilities after|
||assets and liabilities|liabilities after off-set|||
||||period-begin|off-set|
|Deferred income tax||5,687,946.62|||
|||||6,036,198.23|
|assets|||||
|Deferred income tax||66,021,500.49|||
|||||49,125,376.03|
|liabilities|||||

(4)Details of income tax assets not recognized
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Deductible temporary difference|114,494,850.00|128,283,915.49|
|Deductible loss|606,745,605.60|562,435,574.75|
|Total|721,240,455.60|690,719,490.24|

 (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|
|2020|703,241.36|703,241.36||
|2021|3,880,135.73|3,880,135.73||
|2023|129,226,944.33|129,226,944.33||
|2024|148,095,898.11|148,095,898.11||
|2025|83,287,153.64|83,287,153.64||
|2026|120,820,767.06|120,820,767.06||
|2028|76,421,434.52|76,421,434.52||
|2029|44,310,030.85|||
|Total|606,745,605.60|562,435,574.75|--|

31 .Other non-current assets
Whether implemented new revenue guidelines?
□ Yes√No
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Advance payment for equipment fund|||
||148,843,296.00|152,688,087.18|
|Dvance payment for technical services|176,764,571.83|176,764,571.83|
|Total|325,607,867.83|329,452,659.01|

 32. Short-term borrowings
（1）Categories of short-term loans
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-Beginning|
|Credit borrowings|50,837,730.76|411,522,111.40|
|Total|50,837,730.76|411,522,111.40|

 (2) Situation of Overdue Outstanding Short-Term Borrowing
Not applicable
33. Transactional financial liabilities
Not applicable
34. Derivative financial liability
Not applicable
35.Notes payable
Not applicable
36. Accounts payable
(1) List of accounts payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Within 1 year|245,132,120.82|177,140,118.37|
|1-2 years|1,506,049.28|2,059,842.85|
|2-3 years|49,238.45|37,402.40|
|3-4 years|37,402.40|35,075.05|
|4-5 years|270,552.23|281,166.48|
|Over 5 years|731,537.05|685,847.75|
|Total|247,726,900.23|180,239,452.90|

（2）Significant accounts payable that aged over one year
Not applicable
37.Advance account
Whether implemented new revenue guidelines?
□ Yes√No
(1) List of Advance account
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Within 1 year|24,126,360.37|119,293,518.44|
|1-2 years|432,970.46|560,077.61|
|2-3 years|227,835.39|210,330.74|
|3-4 years|||
|4-5 years|||
|Over 5 years|639,024.58|639,024.58|
|Total|25,426,190.80|120,702,951.37|

 (2) Significant advance from customers aging over one year
Not applicable
（3）Information of unliquidated completed assets formed in the construction contract at the end
of the period
Not applicable
38.Contract liabilities
Not applicable
39. Payroll payable
(1) List of Payroll payable
In RMB
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase in this period|Payable in this period|Balance in year-end|
|I. Short –term wages|32,506,267.08|70,261,369.72|78,386,426.73|24,381,210.07|
|II. Welfare after waving|||||
|of position-fixed||5,803,834.30|5,803,834.30||
|provision scheme|||||
|Total|32,506,267.08|76,065,204.02|84,190,261.03|24,381,210.07|

（2）Short-term remuneration
In RMB
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase in this period|decrease in this period|Balance in year-end|
|1.Wages, bonuses,|||||
||30,794,253.21|60,420,574.96|68,645,717.86|22,569,110.31|
|allowances and subsidies|||||
|2.Employee welfare||4,815,414.94|4,815,414.94||
|3. Social insurance|||||
|||1,044,657.16|1,044,657.16||
|premiums|||||
|Including：Medical|||||
|||836,870.97|836,870.97||
|insurance|||||
|Work injury insurance||88,159.91|88,159.91||
|Maternity insurance||119,626.28|119,626.28||
|4. Public reserves for|||||
|||2,577,398.43|2,577,398.43||
|housing|||||
|5.Union funds and staff|||||
||1,712,013.87|1,403,324.23|1,303,238.34|1,812,099.76|
|education fee|||||
|Total|32,506,267.08|70,261,369.72|78,386,426.73|24,381,210.07|

（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||4,884,610.17|4,884,610.17||

||||
|-|-|-|
|insurance premiums|||
|2.Unemployment|||
||92,168.12|92,168.12|
|insurance|||
|3. Annuity payment|827,056.01|827,056.01|
|Total|5,803,834.30|5,803,834.30|

40.Tax Payable
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|VAT|443,530.70|793,392.58|
|Enterprise Income tax|7,261,559.44|6,198,704.39|
|Individual Income tax|383,031.06|160,823.58|
|City Construction tax|14,901.49|54,516.12|
|House property tax|2,954,221.68|204,941.07|
|Educational surtax|9,529.64|37,825.82|
|Land VAT|5,271,919.22||
|Other|166,762.09|294,925.43|
|Total|16,505,455.32|7,745,128.99|

 41.Other payable
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Interest payable|435,029.66|39,044,044.39|
|Other|170,702,934.76|189,971,235.59|
|Total|171,137,964.42|229,015,279.98|

（1) Interest payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Pay the interest for long-term loans by|||
|||37,220,662.08|
|installments.|||
|Pay the interest for short-term loans by|||
||435,029.66|1,823,382.31|
|installments.|||

||||
|-|-|-|
|Total|435,029.66|39,044,044.39|

 (2) Dividends payable
Not applicable
(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|55,299,112.56|62,574,657.07|
|Unit account|53,231,384.04|53,935,705.78|
|Deposit|25,872,902.45|25,481,743.17|
|Restrictive stock repurchase|||
||16,139,003.40|27,802,523.26|
|obligation|||
|Other|20,160,532.31|20,176,606.31|
|Total|170,702,934.76|189,971,235.59|

 42. Liabilities classified as holding for sale
Not applicable
43. Non-current liabilities due within 1 year
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Long-term loans due within 1 year|0.00|40,000,000.00|
|Total||40,000,000.00|

 44.Other current liabilities
Whether implemented new revenue guidelines?
□ Yes√No
45. Long-term borrowing
(1) Category of long-term loan
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Credit borrowings|0.00|40,000,000.00|
|Add：Long-term term borrowings|||
||0.00|-40,000,000.00|
|due within 1 year|||

46.Bond payable
（1）Bond payable
Not applicable
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial liability
Not applicable
(3) Note to conditions and time of share transfer of convertible bonds
Not applicable
（4）Other financial instruments that are classified as financial liabilities
Not applicable
47. Lease liability
Not applicable
48. Long-term payable
Not applicable
49. Long term payroll payable
Not applicable
50. Estimates liabilities
Whether implemented new revenue guidelines?
□ Yes√No
51.Deferred income
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Beginning of term|Increased this term|Decreased this term|End of term|Reason|
|Govemment Subsidy|137,991,698.33|103,317.00|8,678,248.44|129,416,766.89||
|Total|137,991,698.33|103,317.00|8,678,248.44|129,416,766.89|--|

 Details of governmentsubsidies：
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||Amount||Amount||||
||||transferr||of cost|||Asset-re|
|||New subsidy||Other income||Other|||
||Beginning of||ed to||deducted|||latedori|
|Items||in current||recorded in the||chan|End of term||
||term||non-oper||in the|||ncome-r|
|||period||current period||ges|||
||||ational||current|||elated|
||||income||period||||
|||||||||Related|
|Textile special funds|571,428.57|||71,428.58|||499,999.99||
|||||||||to assets|
|High-tech Industrialization||||||||Related|
||200,000.00|||100,000.00|||100,000.00||
|demonstration projects||||||||to assets|
|National grant funds for new||||||||Related|
||1,000,000.00|||500,000.00|||500,000.00||
|flat panel display industry||||||||to assets|
|Grant funds for TFT-LCD||||||||Related|
||4,333,333.34|||649,999.97|||3,683,333.37||
|polarizer industry project||||||||to assets|
|Grant funds for TFT-LCD|||||||||
|||||||||Related|
|polarizer narrow line (line 5)|2,000,000.00|||250,000.02||0.00|1,749,999.98||
|||||||||to assets|
|project|||||||||
|Purchase of imported||||||||Related|
||677,016.78|||87,545.09|||589,471.69||
|equipment and technology||||||||to assets|
|Innovation and venture capital||||||||Related|
||200,000.00|||25,000.04|||174,999.96||
|for TFT-LCD polarier I project||||||||to assets|
|Shenzhen polarizing materials|||||||||
|and Technology Engineering||||||||Related|
||312,500.00|||25,000.02|||287,499.98||
|Laboratory innovation venture||||||||to assets|
|capital|||||||||
|Shenzzhen Engineering|||||||||
|||||||||Related|
|laboratory polarizing material|3,125,000.00|||250,000.02|||2,874,999.98||
|||||||||to assets|
|and technical engineering|||||||||
|Capital funding for Technology||||||||Related|
||1,875,000.00|||150,000.00|||1,725,000.00||
|Center||||||||to assets|
|Subsidy funds to support the int|||||||||
|||||||||Related|
|roduction of advanced technolo|57,552.41|||7,194.00|||50,358.41||
|||||||||to assets|
|gy|||||||||
|Local supporting funds for|14,250,000.00|||750,000.00|||13,500,000.00|Related|

||||||
|-|-|-|-|-|
|TFT-LCD polarizer Phase II||||to assets|
|Project (line 6)|||||
|State subsidy for TFT-LCD|||||
|||||Related|
|polarizer Phase II Project (line|9,500,000.00|500,000.00|9,000,000.00||
|||||to assets|
|6)|||||
|Innovation and venture capital|||||
|||||Related|
|for TFT-LCD polarizer Phase II|475,000.00|25,000.00|450,000.00||
|||||to assets|
|Project (line 6)|||||
|key technology|||||
|research and development||||Related|
||4,125,000.00|250,000.02|3,874,999.98||
|projects of optical||||to assets|
|compensation film for polarizer|||||
|Strategic industries|||||
|||||Related|
|Development fund of|23,750,000.00|1,250,000.00|22,500,000.00||
|||||to assets|
|Guangdong Province|||||
|Grants of Purchase equipment|||||
|||||Related|
|of TFT-LCD polarizing film|28,500,000.00|1,500,000.00|27,000,000.00||
|||||to assets|
|phase II project|||||
|Energy saving transformation||||Related|
||86,458.56||86,458.56||
|grant funds||||to assets|
|Old elevator renovation fund||||Related|
||1,147,008.67|55,877.85|1,091,130.82||
|subsidies||||to assets|
|Polarization Industrialization|||||
|Project for Super Large-sized||||Related|
||30,000,000.00||30,000,000.00||
|TVs (Line 7) Central Budget||||to assets|
|Investment|||||
|Research & development|||||
|subsidy for key technologies of||||Related|
||2,000,000.00||2,000,000.00||
|ultra-thin IPS polarizer for||||to assets|
|smart phone terminals|||||
|Finance committee of|||||
|Shenzhen municipality (R&D|||||
|of key technology of||||Related|
||5,000,000.00||5,000,000.00||
|high-performance polarizer for||||to assets|
|large size display panel of|||||
|2018N007)|||||
|The ministry of industry and|||||
|information technology, the|||||
|ministry of finance, the circ||||Related|
||4,806,400.00|2,231,202.83|2,575,197.17||
|first batch of new material||||to assets|
|application insurance|||||
|compensation|||||

||||||||
|-|-|-|-|-|-|-|
|Compensation for land|||||||
|||||||Related|
|requisition by Longhua Street||103,317.00||0.00|103,317.00||
|||||||to assets|
|Office (factory wall)|||||||
|Total|137,991,698.33|103,317.00|8,678,248.44||129,416,766.89||

 Othernotes：
(1).According to the "Notice on National Development and Reform Commission to the General Office of the textile project management of the special funds" (Faigaiban[2006]2841), on December 2006, the Company received "Textile special" funds RMB 2,000,000.00 from Shenzhen Finance Bureau. The company will use 14 years as asset depreciation period for amortization with the corresponding equipment in current period. The amortization in accordance with the corresponding equipment, The other income in current period is RMB71,428.58, the ending balance of uncompleted amortization is RMB499,999.99 .
(2).According to the document of Shenzhen Municipal Development and Reform Commission【2009】 No. 416 that "The Notice On issued the Governmental Investment Plan in 2009 on Zhong Ke New Industrial Internet Security Audit System and Other High-tech Industrialization Demonstration Project and the Public Testing and Consultation Service of Information Security Industry and other National High-tech Industrial Base Platform Projects”, on May 2009, the company received the Shenzhen Municipal Development and Reform Commission high-tech industrialization demonstration project supporting Capital RMB 2 million allocated by Shenzhen City Bureau of Finance for the construction of “The Project of the Construction Line of Polaripiece for TFT-LCD”.Our company will use 10 years as asset depreciation period for amortization in current period. The other income in current period is RMB100,000.00 and the balance amount of unfinished final amortization is RMB100,000.00.
(3) According to the document of the Office of the State Development and Reform Commission on "The Office of the State Development and Reform Commission on the Reply of New Flat-Panel Display Industrialization Special Project” (Development and Reform OfficeHigh-Tech【2008】No. 2104), the company obtained the state subsidies RMB 10,000,000.00 from the State Development and Reform Commission New Flat-Panel Display Industrialization Special Project for the construction of “The Project of Polaripiece Industrialization for TFT-LCD”. On June 2009, December 2009 and April 2010, the company received the special subsidies of State Development and Reform Commission RMB 10,000,000.00. Our company will use 10 years as asset depreciation period for amortization. The non-operating income in current period is RMB500,000.00, the balance amount of unfinished final amortization is RMB500,000.00.
(4) In accordance with the Notice of Forwarding the Reply of General Office of State Development and Reform Commission Regarding Special Plan for Strategic Transformation and Industrialization of Color TV Industry issued by Shenzhen Development and Reform Commission (Shen Fa Gai (2011) No. 823), State Development and Reform Commission approved including the project of
industrialization of polarizer sheet for TFT-LCD of Shengbo Optoelectronic Company into the
special plan for strategic transformation and industrialization of color TV industry in 2010 and
appropriated national aid of RMB 10,000,000.00 to Shengbo Optoelectronic Company for the
research and development in the process of the project of industrialization and the purchase of required software and hardware equipment. On June 2012 and September 2013, the company received the national grants of RMB 10,000,000.00.. According to the Notice of Issuing the Governmental Investment Plan for 2011 Regarding Demonstration Project of High-tech Industrialization Including Specialized Services Such As Disaster Recovery of Financial Information System issued by Shenzhen Development and Reform Commission (Shen Fa Gai (2012) No. 3), the Company received subsidy of RMB 3,000,000.00 for the project of industrialization of polarizer sheet for TFT-LCD in April 2012. Our company will use 10 years as asset depreciation period for amortization in current period.The non-operating income in current period is RMB649,999.97. and the balance amount of unfinished final amortization is RMB 3,683,333.37.
(5) According to the Notice about the Plan for Supporting the Second Group of Enterprises in Biological, Internet, New Energy and New Material Industries with Special Development Funds (Shen Fa Gai (2011) No. 1782), the Company received subsidy of RMB 5,000,000.00 for the narrow-width line (line 5) of phase-I project of polarizer sheet for TFT-LCD on February 2012. The Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets. The non-operating income in current period is RMB250,000.02 and the balance amount of unfinished final amortization is RMB1,749,999.98.
(6) On October 2013, The company received the grants for the purchase of imported equipment and technology in 2012 of RMB 1,750,902.00, the Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets.The non-operating income in current period is RMB87,545.09 and the balance amount of unfinished final amortization is RMB 589,471.69. (7) On December2013，The company received the funds for innovation and entrepreneurship of TFT-LCD polarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matching funding category),the Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets. The non-operating income in current period is RMB25,000.04 and the balance amount of unfinished final amortization is RMB174,999.96 .
(8) On December2013，The company received the funds for innovation and entrepreneurship of TFT-LCD polarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matching funding category),the Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets. The non-operating income in current period is RMB25,000.02 and the balance amount of unfinished final amortization is RMB 287,499.98 .
(9) According to the Approval of Application of Shenzhen Shengbo Optoelectronic Technology Co., Ltd. for Project Funds for Shenzhen Polarization Material and Technology Engineering Laboratory (Shen Fa Gai (2012) No. 1385), Shenzhen Polarization Material and Technology Engineering Laboratory was approved to be established on the strength of Shengbo Optoelectronic with total project investment of RMB 24,390,000.00. As approved by Shenzhen Municipal People's Government, this project was included in the plan for supporting the fourth group of enterprises with special fund for the development of strategic new industries in Shenzhen in 2012 (new material
industry). According to the Notice of Issuing the Plan for Supporting the Fourth Group of Enterprises with Special Fund for Development of Strategic New Industries in Shenzhen in 2012 (Shen Fa Gai (2012) No. 1241), the Company received subsidy of RMB 5,000,000.00 on December 2012 for purchasing instruments and equipment and improving existing technological equipment and test conditions. The fund gap will be filled by the Company through raising funds by itself. the Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets. The non-operating income in current period is RMB250,000.02 and the balance amount of unfinished final amortization is RMB 2,874,999.98 .
(10) According to the “Announcement on the Identification of Technology Centers of 24 Enterprises including Shenzhen Yuanwanggu Information Technology Joint Stock Company Limited as the Municipal Research and Development Centers (Technical Center)” (SJMXXJS[2013] No.137), the research and development center of SAPO has been regarded as 2012 annual municipalR&D center. In December 2013, the company has received the funding subsidy of RMB3 million for the construction of the technical center. the Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets. The non-operating income in current period is RMB150,000.00 and the balance amount of unfinished final amortization is RMB 1,725,000.00.
(11)On March 2014 the company received the introduction of advanced technology import subsidy fu nds of RMB 143,881.00 from Shenzhen Finance Committee, the Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets. The non-operating income in current period is RMB7,194.00 and the balance amount of unfinished final amortization is RMB50,358.41.
(12)According to the "Shenzhen Municipal Development and Reform Commission Reply for SAPO application for local matching funds of TFT-LCD polarizing film II project (Line 6) " (Shenzhen DRC[2013]No. 1771), the company obtained TFT-LCD polarizing film II project (line 6) local matching funds of RMB 15,000,000.00 in April 2014. TFT-LCD polarizer Phase II project (Line 6) hit the expected available state and transferred to fixed assets in June 2018. Amortized by a period of 10 years in depreciation of relevant assets, RMB 750,000.00 was included into other incomes in the current period and the ending outstanding balance was RMB 13,500,000.00 .
(13)According to "National Development and Reform Commission issued on industrial transformation and upgrading projects
(2nd
industrial restructuring) notify the central budget for 2014 investment plan" (NDRC Investment[2014] No. 1280), the company obtained TFT- LCD polarizer II project (line 6) state grants of RMB 10,000,000.00 in December 2014. TFT-LCD polarizer Phase II project (Line 6) hit the expected available state and transferred to fixed assets in June 2018. Amortized by a period of 10 years in depreciation of relevant assets, RMB 500,000.00 was included into other incomes in the current period and the ending outstanding balance was RMB 9,000,000.00. (14) In December 2014, the company received innovation venture capital (matching funding category) for Ping Shan District Development and Finance Bureau of TFT-LCD polarizing film II project (line 6) of RMB 500,000.00. TFT-LCD polarizer Phase II project (Line 6) hit the expected available state and transferred to fixed assets in June 2018. Amortized by a period of 10 years in
depreciation of relevant assets, RMB 25,000.00 was included into other incomes in the current period and the ending outstanding balance was RMB450,000.00.
(14)On Jan. 2015, the company received RMB 5 million of grants for key technology research and development projects of optical compensation film for polarizer from Shenzhen Scientific and Technological Innovation Committee. The company has reached the expected date of use of the assets., the Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets. The other income in current period is RMB250,000.02 and the balance amount of unfinished final amortization is RMB3,874,999.98.
(16)According to “Reply on Congregating Development in Emerging Industrial Area Strategic Pilot Implement Scheme of Guangdong Province ”(Reform and Development Office High-Tech[2013] No.2552,On December 2015, the Company received RMB20 million of the pilot project fund( period II project of TFT-LCD polarizer).On October 2016, the Company received RMB 5 million of Shenzhen strategic emerging industries and the future development of industrial matching funds, TFT-LCD polarizer Phase II project (Line 6) hit the expected available state and transferred to fixed assets in June 2018. Amortized by a period of 10 years in depreciation of relevant assets, RMB 1,250,000.00 was included into other incomes in the current period and the ending outstanding balance was RMB 22,500,000.00.
(17). According to Reform and Development Commission of Shenzhen Municipality sending the notice of “Reply of National Reform and Development Office on Investing in Petrifaction and Medicine Project within Central Budget of 2013 for Industry Structure Adjustment Special Project”(Reform and Development Commission of Shenzhen Municipality[2013]No.1449) , the Company received 30 million RMB of new production line of TFT-LCD polarizer project period II and equipment purchase subsidy in August 2015 ,December 2015 and September 2016. TFT-LCD polarizer Phase II project (Line 6) hit the expected available state and transferred to fixed assets in June 2018. Amortized by a period of 10 years in depreciation of relevant assets, RMB 1,500,000.00 was included into other incomes in the current period and the ending outstanding balance was RMB 27,000,000.00.
(18) In 2015 and In 2016, the Company received the subsidy funds of 202,608.00 RMB and 34,535.45 RMB on energy-saving reconstruction, amortized by 8-year depreciation life of the relevant asset, the Other income was RMB 0.00 at the current period, the ending balance without amortization was RMB 86,458.56.
(19). In 2017, the company received 1,218,640.00 yuan for the old elevator upgrade subsidy, the company received 325,380.00 yuan for the old elevator upgrade subsidy in 2018, the Other income was RMB 55,877.85 at the current period, the ending balance without amortization was RMB 1,091,130.82. (20) According to the Notice of the Ministry of Industry and Information Technology of the National Development and Reform Commission for Releasing the Central Budgetary Investment Plan of the 2017 of the Technical Transformation of the Electronic Information Industry (NDRC Investment{2017} No. 1649), the company received oversize TV for use in November 2017. In
November 2017, the company received an central budgetary investment of RMB 30,000,000.00 of the oversized TV polarizer industry project. The company shall transfer the deferred income to the current profit or loss for the period of depreciation from the date when the relevant assets are ready for their intended use.
(21) In accordance with the development plans and policies of Shenzhen Municipality for Strategic emerging Industries, the Management Measures of Shenzhen City on Funds for Scientific and Technological Research and Development, the Management Measures of Shenzhen City on Science and Technology Plan Project and other relevant documents, Shenzhen Science and Technology Innovation Commission and SAPO completed the development of the key technology of the 20170535 ultra-thin polarizer used in IPS smart phone terminal in the Shenzhen Science and Technology Plan issued by SFG[2017] No. 1447 document. In February 2018, the company received funding from Shenzhen Science and Technology Innovation Commission of 2,000,000 yuan for R& D. The company will transfer the deferred income to the current profit and loss according to the depreciation period from the date when the relevant assets reach the expected usable status.
(22). According to Measures for Management of Science and Technology Research& Development Funds in Shenzhen, Measures for Management of Projects in Shenzhen Municipal Science and Technology Program and other documents concerned, SAPO and Shenzhen Science and Technology Innovation Committee entered into a Contract of Projects in Shenzhen Municipal Science and Technology Program through consultation to complete development of key techniques for high-performance polarizers for 2018N007 jumbo display panels in the program delivered in Shen Fa Gai[2018] No.324 document. The Company was granted with a financial subsidy of RMB 5,000,000.00 this year. The Company amortized and transferred the deferred income into the current profit and loss by period of depreciation after relevant assets hit the expected available state.
(23). Compliance with the document spirit of the Notice of Ministry of Industry and Information Technology, Ministry of Finance and China Insurance Regulatory Commission on Piloting an Insurance Compensation Mechanism for the First Batch of Key New Materials (Gong Xin Bu Lian Yuan[2017] No.222 document). In December 2018, the Company received a relevant premium subsidy of RMB 4,806,400.00 from the Ministry of Industry, In the current period, the sales expenses will be reduced of RMB 2,231,202.83, the ending balance without amortization was RMB 2,575,197.17.
24. During the reporting period, Longhua district subdistrict office received RMB103,317.00 of compensation fund for land requisition, which had not been amortized by the end of the reporting period.
52. Other non-current liabilities
Whether implemented new revenue guidelines?
□ Yes√No
53.Stock capital
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Changed（+，-）||||||
||Year-beginning|||Capitalization|||Balance in|
|||Issuance of||||||
||balance||Bonus shares|of public|Other|Subtotal|year-end|
|||new share||||||
|||||reserve||||
|Total of capital|||||||511,274,149.00|
||511,274,149.00|||||||
|shares||||||||

54. Other equity instruments
Not applicable
55. Capital reserves
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginning balance|Increase in the current|Decrease in the current|Year-end balance|
|||period|period||
|Share premium|1,848,960,987.54|||1,848,960,987.54|
|Other|16,755,996.09|||16,755,996.09|
|Total|1,865,716,983.63|||1,865,716,983.63|

 56.Treasury stock
In RMB
||||||
|-|-|-|-|-|
||||Decrease in the current||
|Items|Year-beginning balance|Increase in the current||Year-end balance|
||||period||
|Treasurpy stock-A share|27,230,679.00|||27,230,679.00|
|Total|27,230,679.00|||27,230,679.00|

 57. Other comprehensive income
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Amount of current period|||||||
||||Less：|Less：Prior|||||
||||Amount|period|||||
||||||||After-tax||
||||transferred|included|||||
|||Amount|||Less：|After-tax|||
||Year-beginning balance|||||||Year-end|
|Items|||into profit|in other|||attribute to||
|||incurred|||Income|attribute to|||
||||and loss in|composite|||minority|balance|
|||before|||tax|the parent|||
||||the current|income|||shareholde||
|||income tax|||expenses|company|||
||||period that|transfer to|||r||
||||recognied|retained|||||
||||into other|income in|||||

||||||||
|-|-|-|-|-|-|-|
||||comprehensi|the current|||
||||ve income in|period|||
||||prior period||||
|1. Other comprehensive income|||||51,249,010.40||
||147,376,128|51,249,01||||198,625,|
|that cannot be reclassified in the|||0.00||||
||.10|0.40||||138.50|
|loss and gain in the future|||||||
|Changes in fair value of|||||51,249,010.40||
|||51,249,01||||51,249,0|
|investments in other equity|||||||
|||0.40||||10.40|
|instruments|||||||
|Accounting policy|147,376,128|||||147,376,|
|adjustment|.10|||||128.10|
|2.Other comprehensive income|||||807,241.54||
||1,339,208.4|807,241.5||||2,146,44|
|reclassifiable to profit or loss in|||||||
||1|4||||9.95|
|subsequent periods|||||||
|Translation differences of|||||807,241.54||
||1,339,208.4|807,241.5||||2,146,44|
|financial statements|||||||
||1|4||||9.95|
|denominated|||||||
|Total of other comprehensive|148,715,336|52,056,25|||52,056,251.94|200,771,588.45|
|income|.51|1.94|||||

 58. Special reserves
Not applicable
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|80,004,803.23|||80,004,803.23|
|Total|80,004,803.23|||80,004,803.23|

 60. Retained profits
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Retained earnings before adjustments at the yearbeginning|||
||-57,774,473.41|-32,266,087.44|
|Retained earnings after adjustments at the yearend|||
||-57,774,473.41|-32,266,087.44|

||||
|-|-|-|
|Add: Net profit attributable to owners of theCompany for the period|||
||7,832,287.98|-22,980,624.93|
|Less: Appropriation to statutory surplus reserve||2,527,761.04|
|Retained profits at the period end|-49,942,185.43|-57,774,473.41|

 As regards the details of adjusted the beginning undistributed profits
61. Business income, Business cost
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Items|||||
||Income|Cost|Income|Cost|
|Main business|1,006,315,551.63|938,514,710.11|471,407,964.26|412,583,996.50|
|Other business|2,547,743.87|2,072,800.62|2,854,444.31|2,508,961.83|
|Total|1,008,863,295.50|940,587,510.73|474,262,408.57|415,092,958.33|

 Whether implemented new revenue guidelines?
□ Yes√No
62.Taxes and surcharges
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Urban construction tax|290,794.73|293,239.29|
|Education surcharge|212,086.40|210,850.54|
|Property tax|2,826,536.51|2,891,819.92|
|Land use tax|98,031.18|176,423.79|
|vehicle and vessel usage tax|3,960.00|3,960.00|
|Stamp tax|458,231.50|260,786.33|
|Other|7,856.46|3,476.25|
|Total|3,897,496.78|3,840,556.12|

 63.Sales expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage|1,605,556.15|1,477,791.73|
|Transportation changes|2,580,690.13|1,402,849.04|
|Exhibition fee|131,576.37|124,705.56|

||||
|-|-|-|
|Business expenses|187,361.86|214,533.49|
|Samples and product loss|359,519.68|179,001.34|
|Property insurance|2,231,202.83|0.00|
|Other|273,897.50|381,530.37|
|Total|7,369,804.52|3,780,411.53|

 Othernotes：The year-on-year increase in property insurance was mainly due to the purchase of "comprehensive insurance for the first batch of application of key new materials" during SAPO reporting period.
64. Administrative expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage|22,919,081.61|23,605,838.32|
|Depreciation of fixed assets|6,383,207.78|4,788,853.45|
|Water and electricity|1,281,518.80|2,017,209.50|
|Intangible assets amortization|689,491.93|648,185.46|
|Travel expenses|738,353.90|512,976.10|
|Office expenses|342,201.90|515,020.20|
|Business entertainment|465,456.54|485,191.77|
|Lawsuit expenses|196,500.00|0.00|
|Repair charge|1,031,667.72|1,804,835.86|
|Property insurance|102,845.11|123,836.06|
|Low consumables amortization|18,322.00|9,731.00|
|Board fees|1,341.50|54,119.00|
|Agency expenses|4,393,993.81|1,639,670.22|
|Other|4,337,897.08|5,033,652.79|
|Tax|42,901,879.68|41,239,119.73|

 Othernotes：
1. The increase in agency fees is mainly due to a number of agency fees incurred in the first half of the year, such as capital increase and stock expansion of subsidiaries, assets verification and asset evaluation, and attorney fees for land ownership confirmation of Guanhua Building.
2. The increase in legal fees is due to the legal service fees for the credit enhancement and extension of the trust project and trade project of the subsidiary SAPO.
65.R& D costs
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage|||
||6,498,554.63|5,909,039.37|
|Material|||
||10,185,129.50|13,348,329.15|
|Depreciation|||
||1,371,404.00|1,230,035.43|
|Fuel & Power|||
||763,053.12|413,784.82|
|Travel expenses|||
||201,113.88|165,089.52|
|Other|||
||153,133.07|122,821.53|
|Total|19,172,388.20|21,189,099.82|

 66.Financial Expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
||3,783,883.97|3,428,083.94|
|Interest expenses|||
||-15,744,104.66|-13,277,267.58|
|Interest income|||
|Exchange loss|9,972,336.73|4,824,219.83|
||1,257,196.02|1,172,376.15|
|Fees and other|||
||-730,687.94|-3,852,587.66|
|Total|||

 67.Other income
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Govemment Subsidy|11,035,139.06|5,812,167.76|

 68. Investment income
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Investment income from the disposal of|||
||-1,114,057.55|616,945.67|
|long-term equity investment|||
|Dividend income from investments in other|||
||908,000.00||
|equity instruments during the holding period|||
|Hold the investment income during from|||
|||574,774.15|
|available-for-sale financial assets|||

||||
|-|-|-|
|Trust income|0.00|27,360,990.33|
|Total|-206,057.55|28,552,710.15|

 69.Net exposure hedging income
Not applicable
70. Gains on the changes in the fair value
Not applicable
71. Credit impairment loss
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Loss of bad debts in other receivables|310,848.71||
|Loss of bad accounts receivable|2,022,916.27||
|Total|2,333,764.98||

72.
Losses from asset impairment
Whether implemented new revenue guidelines?
□ Yes√Not
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Losses on bad debt||-278,909.76|
|Loss of inventory price|-21,259,451.35|-17,115,422.28|
|Total|-21,259,451.35|-17,394,332.04|

 73. Asset disposal income
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Gains & losses on foreign investment in|||
||12,301,144.92||
|fixed assets|||
|Gains& losses on the disposal of fixed|||
||-64,458.67||
|assets|||
|Total|12,236,686.25||

74. Non-Operation income
In RMB
|||||
|-|-|-|-|
|Items|Amount of current period|Amount of previous period|Recorded in the amount of the|
||||non-recurring gains and losses|
|Government Subsidy||55,009.21||
|Gains from disposal of||||
|||24,597.81||
|non-current assets||||
|Return insurance settlement||||
||4,033,846.00||4,033,846.00|
|income||||
|Other|213,415.65|10,301.15|213,415.65|
|Total|4,247,261.65|89,905.17|4,247,261.65|

 Government subsidy reckoned into current gains/losses
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Whether the|||||
|||||impact of|||||
||||||Whether|Amount of|Amount of|Assets-relate|
||Issuing|||subsidies on|||||
|Items||Reason|Nature||special|current|previous|d/income|
||subject|||the current|||||
||||||subsidies|period|period|-related|
|||||profit and|||||
|||||loss|||||
|Shenzhen|||||||||
|Social||||||||Relate to|
|||Subsidy||No|No||55,009.21||
|Security||||||||income|
|Bureau|||||||||

75.Non-current expenses
In RMB
|||||
|-|-|-|-|
||Amount of current period|Amount of previous period|The amount of non-operating|
|Items||||
||||gains & lossed|
|Non-current asset Disposition||||
|||43,338.08||
|loss||||
|Other|6,092.62|110,000.00|6,092.62|
|Total|6,092.62|153,338.08|6,092.62|

 76.Income tax expenses
(1)Income tax expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Current income tax expense|9,599,442.08|5,972,581.36|
|Deferred income tax expense|173,565.75|-650,716.83|
|Total|9,773,007.83|5,321,864.53|

 (2)Reconciliation of account profit and income taxexpenses：
In RMB
|||
|-|-|
|Items|Amount of current period|
|Total profits|4,046,153.95|
|Income tax computed in accordance with the applicable tax rate|1,011,538.50|
|Effect of different tax rate applicable to the subsidiary Company|3,472,144.47|
|Influence of non taxable income|150,265.11|
|Impact of non-deductible costs, expenses and losses|19,450.97|
|Affect the use of deferred tax assets early unconfirmed||
||-88,607.93|
|deductible losses||
|The current period does not affect the deferred tax assets||
||5,208,216.71|
|recognized deductible temporary differences or deductible loss||
|Income tax expense|9,773,007.83|

 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|
||11,035,139.06|5,396,000.00|
|Government Subsidy|||
||18,080,774.86|20,764,799.70|
|Bank deposit interest income and other|||
|Total|29,115,913.92|26,160,799.70|

 (2)Other cash paid related to operating activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|R&D|11,302,429.57|15,280,060.45|

||||
|-|-|-|
|Office Expense|445,468.55|515,020.20|
|Business fee|730,785.55|699,725.26|
|Travel expenses|1,023,309.74|632,243.41|
|Transportation fee|2,580,960.13|1,402,849.04|
|Agency Charge|4,580,993.81|1,639,670.22|
|Insurance expenses|2,334,047.94|123,836.06|
|Water and electricity|2,293,665.75|2,017,209.50|
|Rental fee|1,031,667.72|1,804,835.86|
|Refund deposit|4,906,692.00|61,102.53|
|Other|764,041.43|1,403,743.74|
|Total|31,994,062.19|25,580,296.27|

 (3)Cash received related to other investment activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Structured deposits, financial products,|||
||620,264,450.94|1,903,828,974.66|
|principal and income|||
|Total|620,264,450.94|1,903,828,974.66|

 (4).Cash paid related to other investment activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Structure deposit investment|985,495,790.87|1,830,500,000.00|
|Total|985,495,790.87|1,830,500,000.00|

（5）Other cash received in relation to financing activities
Not applicable
（6）Cash paid related with financing activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Restricted stock of stock repurchase|||
||11,448,442.40|0|
|incentive object|||
|Total|11,448,442.40|0|

79. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|I. Adjusting net profit to cash flow from|||
||--|--|
|operating activities|||
|Net profit|-5,726,853.88|4,558,099.13|
|Add: Impairment loss provision of assets|-14,622,141.27|-3,940,075.77|
|Depreciation of fixed assets, oil and gas|||
||55,627,659.43|40,523,419.76|
|assets and consumable biological assets|||
|Amortization of intangible assets|689,491.93|620,162.74|
|Amortization of Long-term deferred|||
||350,578.98|155,136.82|
|expenses|||
|Loss on disposal of fixed assets, intangible|||
||-12,236,686.25|43,338.08|
|assets and other long-term deferred assets|||
|Financial expenses ("-" for income)|-730,687.94|-3,852,587.66|
||206,057.55|-28,152,710.15|
|Investments losses ("-" for gains)|||
|Decreases in the deferred income tax assets|||
||348,251.61|-650,716.83|
|("-" for increases)|||
|Decreases in inventories ("-" for increases)|-63,857,296.55|-45,300,979.12|
|Decreases in operating receivables ("-" for|||
||110,200,333.49|-78,431,655.56|
|increases)|||
|Increases in operating receivables（"-" for|||
||-46,422,344.75|-14,422,320.88|
|decreases）|||
|Net cash flows from operating activities|23,826,362.35|-128,850,889.44|
|2、Significant investment and financing|||
|activities involving no cash receipts and|--|--|
|payments|||
|3、Net change in cash and cash equivalents:|--|--|
|Closing balance of cash|255,546,268.35|1,014,735,793.86|
|Less: Opening balance of cash|1,133,574,235.22|1,161,240,139.33|
|Net increase in cash and cash equivalents|-878,027,966.87|-146,504,345.47|

(2) Net Cash paid of obtaining the subsidiary
Not applicable
(3) Net Cash receive of disposal of the subsidiary
Not applicable
(4) Component of cash and cash equivalents
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|I. Cash|255,546,268.35|1,133,574,235.22|
|Including：Cash at hand|10,934.20|13,559.60|
|Demand bank deposit|257,097,913.26|1,133,556,630.43|
|Demand other monetary funds|4,052.27|4,045.19|
|III. Balance of cash and cash equivalents at|255,546,268.35|1,133,574,235.22|
|the period end|||

80. Note of statement of changes in the owner's equity
Not applicable
81. The assets with the ownership or use right restricted
Not applicable
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
|||||
|-|-|-|-|
||Closing foreign currency||Closing convert to RMB|
|Items||Exchange rate||
||balance||balance|
|Monetary funds|--|--||
|Including：USD|1,271,180.24|6.87470|8,738,982.79|
|Euro||||
|HKD|863,940.85|0.87970|760,008.77|
|Yen|993,624.00|0.063816|63,409.11|
|Account payable|--|--||
|Including：USD|1,035,197.73|6.87470|7,116,673.85|
|Euro||||
|HKD|278,280.00|0.87970|244,802.92|
|Yen||||
|Long-term borrowing|--|--||
|Including：USD||||

|||||
|-|-|-|-|
|Euro||||
|HKD||||
|Other receivable||||
|Including：USD|37,399.02|6.87470|257,107.04|
|HKD||||
|Yen||||
|Account payable||||
|Including：USD|4,077,489.83|6.87470|28,031,519.34|
|HKD||||
|Yen|1,443,783,619.98|0.063816|92,136,495.49|
|Other payable||||
|Including：USD|812,419.50|6.87470|5,585,140.34|
|HKD|3,044.46|6.87470|2,667.56|
|Yen|38,255,692.33|0.063816|2,441,325.26|
|Euro|106,218.00|7.81700|830,306.11|
|Short-term borrowing||||
|Including：USD|3,081,888.71|6.87470|21,187,060.31|
|HKD||||
|Yen|464,627,530.00|0.063816|29,650,670.45|
|Interest payable||||
|Including：USD|37,635.02|6.87470|258,729.47|
|HKD||||
|Yen|2,762,632.97|0.063816|176,300.19|

 (2) Note to overseas operating entities, including important overseas operating entities, wich 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
Not applicable
84. Government subsidies
（1）Government subsidies confirmed in current period
In RMB
|||||
|-|-|-|-|
||||Amount included in current|
|Items|Amount|Project||
||||profit and loss|
|Textile special funds|2,000,000.00|Other income|71,428.58|
|High-tech Industrialization||||
||2,000,000.00|Other income|100,000.00|
|demonstration projects||||
|National grant fundsfor new flat||||
||10,000,000.00|Other income|500,000.00|
|panel display industry||||
|Grant funds for TFT-LCD||||
||13,000,000.00|Other income|649,999.97|
|polarizer industry project||||
|Grant funds for TFT-LCD||||
|polarizer narrow line (line 5)|5,000,000.00|Other income|250,000.02|
|project||||
|Purchase of imported||||
||1,750,902.00|Other income|87,545.09|
|equipment and technology||||
|Innovation and venture capital||||
||500,000.00|Other income|25,000.04|
|for TFT-LCD polarier I project||||
|Shenzhen polarizing materials||||
|and Technology Engineering||||
||500,000.00|Other income|25,000.02|
|Laboratory innovation venture||||
|capital||||
|Shenzzhen Engineering||||
|laboratory polarizing material|5,000,000.00|Other income|250,000.02|
|and technical engineering||||
|Capital funding for Technology||||
||3,000,000.00|Other income|150,000.00|
|Center||||
|Subsidy funds to support the int||||
|roduction of advanced technolo|143,881.00|Other income|7,194.00|
|gy||||
|Local supporting funds for||||
|TFT-LCD polarizer Phase II|15,000,000.00|Other income|750,000.00|
|Project (line 6)||||
|State subsidy for TFT-LCD||||
|polarizer Phase II Project (line|10,000,000.00|Other income|500,000.00|
|6)||||
|Innovation and venture capital||||
|for TFT-LCD polarizer Phase II|500,000.00|Other income|25,000.00|
|Project (line 6)||||
|key technology||||
|research and development||||
||5,000,000.00|Other income|250,000.02|
|projects of optical||||
|compensation film for polarizer||||
|Strategic industries||||
||5,000,000.00|Other income|1,250,000.00|
|Development fund of||||

|||||
|-|-|-|-|
|Guangdong Province||||
|Grants of Purchase equipment||||
|of TFT-LCD polarizing film|30,000,000.00|Other income|1,500,000.00|
|phase II project||||
|Old elevator renovation fund||||
||325,380.00|Other income|55,877.85|
|subsidies||||
|The ministry of industry and||||
|information technology, the||||
|ministry of finance, the circ first||||
||4,806,400.00|Other income|2,231,202.83|
|batch of new material||||
|application insurance||||
|compensation||||
|Compensation for land||||
|requisition by Longhua Street|103,317.00|Other income|0.00|
|Office (factory wall)||||
|Name: Industrialization Project||||
|of Polarizer for Ultra Large Size|30,000,000.00|Other income|0.00|
|TV (Line 7)||||
|Research & development||||
|subsidy for key technologies of||||
||2,000,000.00|Other income|0.00|
|ultra-thin IPS polarizer for||||
|smart phone terminals||||
|Finance committee of Shenzhen||||
|municipality (R&D of key||||
|technology of high-performance|5,000,000.00|Other income|0.00|
|polarizer for large size display||||
|panel of 2018N007)||||
|Shenzhen Standard Special||||
||360,000.00|Other income|360,000.00|
|subsidy||||
|Government subsidies related to||||
||1,935,000.00|Other income|1,935,000.00|
|income||||
|Electricity subsidy|61,890.62|Other income|61,890.62|
|Total|||11,035,139.06|

（2）Government subsidy return
□ Applicable√ Not applicable
Othernotes：
85.Other
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
Not applicable
(2) Combined cost and goodwill
Not applicable
(3) The identifiable assets and liabilities of acquiree at purchase date
Not applicable
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measuredagain、
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
Not applicable
(6) Other notes:
Nil
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
Not applicable
(2) Combination cost
Not applicable
(3) The book value of the assets and liabilities of the merged party on the date of consolidation
Not applicable
3. Counter purchase
Not applicable
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
6.Other
Not applicable
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
||||||||
|-|-|-|-|-|-|-|
|||||Share-holding ratio|||
|Subsidiary|Main operation|Registered place|Business nature|||Acquired way|
|||||Directly|Indirectly||
|Shenzhen Lishi|||||||
||||Domestic trade,||||
|Industry|Shenzhen|Shenzhen||100.00%||Establish|
||||Property||||
|Development Co.,|||||||
||||Management||||
|Ltd|||||||
||||Accommodation,|||Establish|
|Shenzhen|||||||
||Shenzhen|Shenzhen||100.00%|||
||||restaurants,||||
|Huaqiang Hotel|||||||
||||business center;||||
|Shenfang|||||||
||||Property||||
|Property|Shenzhen|Shenzhen||100.00%||Establish|
|Management Co.,|||Management||||
|Ltd.|||||||
||||Production of|||Establish|
|Shenzhen Beauty|||||||
||Shenzhen|Shenzhen|fully electronic|100.00%|||
|Century Garment|||||||
||||jacquard knitting||||
|Co., Ltd.|||||||
||||whole shape||||
|Shenzhen|||Polarizer||||
||Shenzhen|Shenzhen||60.00%||Purchase|
|Shengbo|||production and||||
|Ophotoelectric|||||||

|||||||
|-|-|-|-|-|-|
|Technology Co.,Ltd|||sales|||
|Shenzhen||||||
||||Operating import|||
|Shenfang Import& export Co.,|Shenzhen|Shenzhen||60.00%|Establish|
||||and export|||
|Ltd.|||business|||
|Shengtou|||||Establish|
||||Production and|||
|(Hongkong)Co.,Ltd.|Hongkong|Hongkong||100%||
||||sales of polarizer|||

（2）Significant not wholly-owned subsidiaries
In RMB
||||||
|-|-|-|-|-|
|||Profit or loss attributable|||
||Holding proportion of||Dividend declared to|Closing balance of|
|Name||to non-controlling|||
||non-controlling interest||non-controlling interest|non-controlling interest|
|||interest|||
|Shenzhen Shengbo|||||
|Ophotoelectric|40.00%|-13,559,141.86|0.00|1,072,348,399.88|
|Technology Co., Ltd|||||

（3）Main financial information of significant not wholly-owned subsidiaries
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance||||||Beginning balance||||||
|||Non-currentassets|||Non-curr||||||Non-curr||
|Subsidia||||||||Non-curr|||||
||Current||Total|Current|ent|Total|Current||Total|Current|ent|Total|
|ries||||||||ent|||||
||assets||assets|liabilities|Liabilitie|liabilities|assets||assets|liabilities|Liabilitie|liabilities|
|||||||||assets|||||
||||||s||||||s||
|Shenzhe|||||||||||||
|n|||||||||||||
|Shengbo|||||||||||||
|Ophotoel|1,769,42|1,386,31|3,155,73|369,764,|127,739,|497,503,|2,309,72|1,362,86|3,672,59|843,110,|136,186,|979,297,|
|ectric|1,245.90|0,959.94|2,205.84|378.24|177.53|555.77|7,042.47|8,246.21|5,288.68|812.37|802.53|614.90|
|Technolo|||||||||||||
|gy Co.,|||||||||||||
|Ltd|||||||||||||

In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Current term||||Last term||||
|Subsidiaries|Operatingrevenue||Total|Cash flow|Operating||Totalcomprehensi|Cash flow|
|||Net profit||||Net profit|||
||||comprehensi|from|revenue|||from|

||||||||||
|-|-|-|-|-|-|-|-|-|
||||ve income|operating|||ve income|operating|
|||||activities||||activities|
|Shenzhen|||||||||
|Shengbo|||||||||
||893,168,312.|-35,069,023.7|-35,069,023.7|73,481,662.8|392,382,938.|-13,141,819.5|-13,141,819.5|-123,066,997.|
|Ophotoelectri|||||||||
||79|1|1|6|55|9|9|41|
|c Technology|||||||||
|Co., Ltd|||||||||

(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Not applicable
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
Not applicable
2. The transaction of the Company with itsowner’s equity share changed but still controlling the subsidiary
(1) Note toowner’s equity share changed in subsidiary
Not applicable
(2) Thetransaction’s influence to equity of minority shareholders and attributable to the owner's equity of the parent company
Not applicable
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
||||||||
|-|-|-|-|-|-|-|
|||||Shareholding Ratio (%)||The accounting|
|Name of|Main Places of|Registration|Nature of|||treatment of|
|Subsidiary|Operation|Place|Business|direct|indirect|investment in|
|||||||associates|
|Shenzhen Haohao|||||||
|Property Leasing|Shenzhen|Shenzhen|Property leasing|50.00%||Equity method|
|Co., Ltd.|||||||
|Shenzhen|||||||
|Changlianfa|||||||
||Shenzhen|Shenzhen|Property leasing|40.25%||Equity method|
|Printing and|||||||
|dyeing Company|||||||
|Jordan Garment|Jordan|Jordan|Manufacturing|35.00%||Equity method|

|||||||
|-|-|-|-|-|-|
|Factory||||||
|Yehui||||||
|International Co.,|Hongkong|Hongkong|Manufacturing|22.75%|Equity method|
|Ltd.||||||
|Anhui Huapeng||||||
||Anhui|Anhui|Manufacturing|50.00%|Equity method|
|Textile Co., Ltd.||||||
|Shenzhen||||||
|Printing &|Shenzhen|Shenzhen|Property leasing|50.16%|Equity method|
|Dyeing Co., Ltd.||||||

（2）The Summarized Financial Information of Joint Ventures
Not applicable
（3）The Summarized Financial Information of Associated Enterprises
Not applicable
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
||||
|-|-|-|
||Closing balance/June 30, 2019|Opening balance/June 30, 2018|
|Joint venture：|--|--|
|Total book value of the investment|17,425,766.44|17,425,766.44|
|Total amount of the pro rata calculation of|||
||--|--|
|the following items|||
|-- Net profit|-1,588,603.47|393,860.77|
|-- Total comprehensive income|-1,588,603.47|393,860.77|
|Associated enterprise：|--|--|
|Total book value of the investment|16,015,465.03|15,526,319.22|
|Total amount of the pro rata calculation of|||
||--|--|
|the following items|||
|--Net profit|-1,243,075.64|223,084.90|
|--Other Comprehensive income|807,241.54|120,349.15|
|--Total comprehensive income|-435,834.10|343,434.05|

 (5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer
funds to the Company
Not applicable
(6) The excess loss of joint venture or associated enterprise
Not applicable
(7) The unrecognized commitment related to joint venture investment
Not applicable
(8) Contingent liabilities related to joint venture or associated enterprise investment
Not applicable
4. Significant common operation
Not applicable
5. Equity of structure entity not including in the scope of consolidated financial statements
Not applicable
6.Other
Nil
X. Risks Related to Financial Instruments
The company has the main financial instruments, such as bank deposits, receivables and payables, investments, loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these financial instruments mainly include credit risk, market risk and liquidity risk. Thecompany’s management shall manage and monitor these risks and ensure above risks to be controlled within certain scope.
（I）Credit Risk
The credit risk of the company is primarily attributable to bank deposits and receivables. Of which, the bank deposits are mainly deposited in the medium and large commercial banks with strength, high credibility. For the receivables, the company has developed the relevant policies to control the credit risk, and set up the corresponding debt and credit limit after the credit status of debtor is evaluated based on financial condition of debtor, credit history, external ratings, possibility of guarantee obtained from the third party. Meanwhile, the company shall regularly monitor thedebtor’s credit history. With regard to the bad credit record for the debtor, the company shall adopt the written reminder, shortening or cancel of credit period to ensure the overall credit risks within the controllable scope.
（II）Market risk
Market risk of financial instrument arises from changes in fair value or future cash flow of financial
instruments affected by market price . Market risks includes foreign exchange risk and interest risk. (1) Interest Rate Risk
The interest rate risk faced by the company is mainly from the bank borrowings. The company is faced the interest rate risk of the cash flow due to the financial liability of the floating interest rate, and faced the interest rate risk of the fair value due to the financial liability of the fixed interest rate. The company shall determine the relative proportion in the fixed and floating interest rate contracts.
(2) Foreign Exchange Risk
The foreign exchange risks faced by the company are mainly from the financial assets and liabilities based on the price of US dollar and JPY. The company matches the income and expenditure of foreign currency as far as possible in order to reduce the foreign exchange risk.
（III）Liquidity risk
Liquidity risk refers to fund shortage problems when fulfilling obligations settled in cash or other financial assets. The company shall guarantee to have the sufficient funds to repay the debts through monitoring the cash balance, the marketable securities available to be cash and the rolling forecast for the future cash flow.
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
||||||
|-|-|-|-|-|
||Closing fair value||||
|||Fir value|Fir value||
|Items|||||
||Fir value measurement||||
|||measurement items|measurement items|Total|
||items at level 1||||
|||at level 2|at level 3||
|I. Consistent fair value measurement|--|--|--|--|
|1. Financial assets measured at fair value|||||
||760,000,000.00|||760,000,000.00|
|through profit or loss|||||
|Financial assets measured at fair value through|||||
||242,767,132.26|||242,767,132.26|
|changes in comprehensive income|||||
|Total of Consistent fair value measurement|1,002,767,132.20|||1,002,767,132.20|
|II Inconsistent fair value measurement|--|--|--|--|

 2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
The input value at the first level is that the company can obtain unadjusted quotations of the
same assets or liabilities in the active market on the measurement date.
XII. Related parties and related-party transactions
1.Parent company information of the enterprise
|||||||
|-|-|-|-|-|-|
|||||The parent company|The parent company of|
||||Registered|||
|Name|Registered address|Nature||||
|||||of the Company's|the Company’s vote|
||||capital|||
|||||shareholding ratio|ratio|
|||Equity investment ,||||
|Shenzhen|18/F, Investment|||||
|||Real-estate||||
|Investment|Building, Shennan Road,||2,534,900.00|45.78%|48.94%|
|||Development and||||
|Holdings Co.,Ltd.|Futian District, Shenzhen|||||
|||Guarantee||||

2.Subsidiaries of the Company
Details refer to the Note IX-1, Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note IX-3, 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:
|||
|-|-|
|Name|Relation of other Related parties with the company|
|Shenzhen Haohao Property Leasing Co., Ltd.|Sharing Company|
|Shenzhen Changlianfa Printing and dyeing Company|Sharing Company|
|Yehui International Co., Ltd.|Sharing Company|
|Anhui Huapeng Textile Co., Ltd.|Sharing Company|
|Shenzhen Xinfang Knitting Co., Ltd.|Sharing Company|
|Shenzhen Dailishi Underwear Co., Ltd.|Sharing Company|
|Shenzhen Guanhua Printing & Dyeing Co., Ltd.|Sharing Company|

4.Other Related parties information
|||
|-|-|
|Other related party|Relationship to the Company|
|Shenzhen Shenchao Technology Investment Co., Ltd.|Subject to the same party controls|
|Shenzhen Tianma Microelectronics Co., Ltd.|Chairman of the Board Is the Vice Chairman of the Company|
|Shengbo （HK）Co., Ltd.|The Company Executives are Director of the company|
||On the subsidiary Shenzhen Shengbo Optoelectronics Technology|
|Hangzhou Jinjiang Group Co., Ltd.||
||Co., Ltd. has a significant impact on the actual control of the|

|||
|-|-|
||shareholders controlled by the enterprise|
|Kunshan Zhiqimei Material Technology Co., Ltd.|Sharing Company of Hangzhou Jinjiang Group Co., Ltd.|
|Shenzhen Xinfang Knitting Co., Ltd.|Sharing Company|
|Shenzhen Dailishi Underwear Co., Ltd.|Sharing Company|

5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
|||||||
|-|-|-|-|-|-|
|||||Whether over the||
|Related party|Content|Current amount|Approval trading limit||Last amount|
|||||trading limit(Y/N)||
|Kunshan Zhiqimei||||||
|Material|Purchasing|||||
|||58,479,328.60|208,800,000.00|No|14,103,038.28|
|Technology Co.,|polarizer|||||
|Ltd.||||||

Related transactions on sale goods and receiving services
In RMB
|||||
|-|-|-|-|
|Related parties|Content of related transaction|Amount of current period|Amount of previous period|
|Kunshan Zhiqimei Material||||
||Sales polarizer sheet|79,108,319.24|0.00|
|Technology Co., Ltd.||||
|Shenzhen Tianma||||
||Sales polarizer sheet|740,904.84|1,166,047.31|
|Microelectronics Co., Ltd.||||

(2) Related trusteeship/contract
Not applicable
(3) Information of related lease
Not applicable
(4) Related-party guarantee
Not applicable
(5) Inter-bank lending of capital of relatedparties：
Not applicable
(6) Related party asset transfer and debt restructuring
Not applicable
(7) Rewards for the key management personnel
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Senior Excutive|3,136,527.00|2,643,194.00|

 (8) Other related transactions
In order to carry out TFT-LCD polarizer project construction, the company signed an entrusted loan contract with Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Jiangsu Building Branch of Ping An Bank in 2010. The contract stipulates that Shenzhen Shenchao Science& Technology Investment Co., Ltd. entrusts Shenzhen Jiangsu Building Branch of Ping An Bank to loan 200,000,000.00 yuan to the Company. The term of the loan was 108 months from the date the first entrusted loan was issued to the company's account. The entrusted loan interest rate was lowered by2% based on the 5-year commercial loan interest rate announced and issued by the People's Bank of China. In case of adjustments to the 5-year commercial loan interest rate of the People's Bank of China, from the first day of the next month of the benchmark interest rate adjustment, the entrusted loan interest rate will be lowered by two percentage points according to the adjusted 5-year commercial loan interest rate. During the reporting period, all remaining principal and interest have been repaid, and the company's loan balance is 0 yuan.
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|Bad debt Provision|Balance of Book|Bad debt Provision|
||Shenzhen Tianma|||||
|Account receivable|Microelectronics|473,735.18|23,686.76|894,474.64|44,723.73|
||Co., Ltd.|||||
||Kunshan Zhiqimei|||||
|Account receivable|Material Technology|87,255,501.33|4,362,775.07|84,062,627.96|4,203,131.40|
||Co., Ltd.|||||
|Other Account|Anhui Huapeng|||||
|||1,800,000.00|1,800,000.00|1,800,000.00|1,800,000.00|
|receivable|Textile Company|||||
|Other Account|Shenzhen Dailishi|||||
|||||416,464.86|20,823.24|
|receivable|Underwear Co., Ltd.|||||

（2）Payables
In RMB
|||||
|-|-|-|-|
|Name|Related party|Amount at year end|Amount at year beginning|
|Account payable|Kunshan Zhiqimei Material Technology Co., Ltd.|29,280,982.97|17,405,753.46|
|Other payable|Shenzhen Xinfang Knitting Co., Ltd.|244,789.85|244,789.85|
|Other payable|Shenzhen Changlianfa Printing and dyeing Co., Ltd.|1,178,449.95|1,178,449.95|
|Other payable|Shenzhen Changlianfa Printing and dyeing Co., Ltd.|3,554,489.85|4,454,489.85|
|Other payable|Yehui International Co.,Ltd.|1,194,824.20|1,190,070.22|
|Other payable|SAPO （Hongkong）Co., Ltd.|315,000.00|315,000.00|
|Interest payable|Shenzhen Shenchao Technology Investment Co., Ltd.|0.00|37,220,662.08|
|Other payable|Shenzhen Dailishi Underwear Co., Ltd.|85,599.94|0.00|

 7. Related party commitment
Not applicable
8.Other
Nil
XIII. Share payment
1. Overall situation of share payment
√ Applicable□Not applicable
In RMB
|||
|-|-|
|Total amount of various equity instruments granted by the company||
||0.00|
|during the current period||
|Total amount of various equity instruments that the company exercises||
||0.00|
|during the period||
|Total amount of various equity instruments that have expired in the||
||0.00|
|current period||
||The company issued 4,752,300 restricted stocks at the|
||end of the period, and the grant price was 5.73|
||yuan/share. Restrictions shall be lifted at the rate of|
|The scope of executive price of the company’s outstanding share options||
|at the end of the period and the remaining term of the contract|40%, 30%, and 30% respectively after 12 months, 24|
||months, and 36 months after the first transaction date of|
||24 months after the completion of the registration. The|

|||
|-|-|
||period of validity of the entire plan shall not exceed 60|
||months from the date of granting the restricted stock to|
||the date on which the restricted stocks granted to the|
||incentive object are all released from restrictions on|
||sale or cancelled by repurchase.|
|The scope of executive price of the company’s other equity instruments at||
||0|
|the end of the period and the remaining term of the contract||

Other notes
On December 14, 2017, the company's 3rd Extraordinary General Meeting of Shareholders in 2017 passed the Proposal on‘Shenzhen Textile (Group) Co., Ltd. 2017 Restricted Stock Incentive Plan (Draft) andAbstract’; on December 14, 2017, the board of directors of the company reviewed and passed the Proposal on Adjusting the List of Incentive Objects of Restricted Stock Incentive Plans and the Number of Equity Granted of 2017, and the Proposal on Granting Restrictive Shares to Incentive Objects. On December 14, 2017, the company granted 4,752,300 restricted shares to the incentive object, the grant price was 5.73 yuan/share. Restrictions shall be lifted at the rate of40%,30%, and30% respectively after 12 months, 24 months, and 36 months after the first transaction date of 24 months after the completion of the registration. The company's performance assessment for the restricted shares granted each period is as follows:
|||
|-|-|
|Restriction lifting period|Performance assessment goals|
|The first restriction liftingperiod|In 2018, the earnings per share shall be no less than 0.07 yuan, and shall not be lower thanthe 75 fractiles level of the comparable listed companies in the same industry; the growthrate of operating revenue in 2018 compared with 2016 is not less than 70%, and is notlower than the 75 fractiles level of comparable listed companies in the same industry; in2018, the proportion of optical film business such as polarizers to operating revenue is noless than 70%.|
|The second restrictionlifting period|In 2019, earnings per share shall be no less than 0.08 yuan, and shall not be lower than the75 fractiles level of the comparable listed companies in the same industry; the growth rateof operating revenue in 2019 compared with 2016 is not less than 130%, and is not lowerthan the 75 fractiles level of comparable listed companies in the same industry; in 2019, theproportion of optical film business such as polarizers to operating revenue is not less than75%.|
|The third restriction liftingperiod|In 2020, the earnings per share shall be no less than 0.20 yuan, and shall not be lower thanthe 75 fractiles level of comparable listed companies in the same industry; the growth rateof operating revenue in 2020 is not less than 200% compared to 2016, and is not lower thanthe 75 fractiles level of comparable listed companies in the same industry. In 2020, theproportion of optical film business such as polarizers to operating revenue will be no lessthan 80%.|

Note: Earnings pershare=net profit/total capital stock attributable to common shareholders of
the Company upon deduction of non-recurring profit and loss.
2. Equity-settled share-based payment
√ Applicable□Not applicable
In RMB
|||
|-|-|
|Determination method of the fair value of equity instruments on the|The closing price of the company's stock on grant date - grant|
|grant date|price|
||On each balance sheet date of the waiting period, it is|
||determined based on the latest information such as the change|
|Determination basis of the number of vesting equity instruments||
||in the number of people that can be released from restrictions|
||and the completion of performance indicators|
|Equity-settled share-based payment is included in the accumulated||
||0.00|
|amount of capital reserve||
|Total amount of fees confirmed by equity-settled share-based||
||0.00|
|payments in the current period||

Other notes
The earnings per share after deduction of non-recurring profit and loss was RMB -0.13/share in 2018, which was lower than the RMB 0.07/share--the performance assessment target in the first period of lifting restrictions on sales; besides, the Company's 2019 budget and 2019-2021 rolling operation plan show that the Company is not expected to complete the performance assessment targets in the second period of lifting restrictions on sales and third period of lifting restrictions on sales in 2019 and 2020.
3. The Stock payment settled by cash
□ Applicable√ Not applicable
4. Modification and termination of the stock payment
Not applicable
5.Other
Nil
XIV. Commitments
1.Significant commitments
Significant commitments at balance sheet date
Nil
2. Contingency
(1) Significant contingency at balance sheet date
Nil
(2) The Company have no significant contingency to disclose, also should be stated
Nil
3.Other
Nil
XV. Events after balance sheet date
1. Significant events had not adjusted
Not applicable
2. Profit distribution
Not applicable
3. Sales return
Not applicable
4. Notes of other significant events
Nil
XVI. Other significant events
Nil
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|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Category|||||Book||||||
|||Proportio||Proportion(%)|||Proportio||Proportio|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n(%)|||||n(%)||n(%)||
|Accrual of bad debt|||||||||||
|provision by single|||||||||||
|item|||||||||||
|Including：|||||||||||
|Accrual of bad debt|||||||||||
||594,006.||29,700.3||564,306.4|570,471.8|||||
|provision by||100.00%||5.00%|||100.00%|28,523.59|5.00%|541,948.21|
||80||4||6|0|||||
|portfolio|||||||||||
|Including：|||||||||||
||594,006.||29,700.3||564,306.46|570,471.8|||||
|Total|||||||100.00%|28,523.59|5.00%|541,948.21|
||80||4|||0|||||

Accrual of bad debt provision by portfolio:29,700.34 yuan
In RMB
|||||
|-|-|-|-|
||Closing balance|||
|Name||||
||Book balance|Bad debt provision|Proportion|
|Within 1 year|594,006.80|29,700.34|5.00%|
|Including：Subtotal within 1||||
||594,006.80|29,700.34|5.00%|
|year||||
|Total|594,006.80|29,700.34|--|

 Notes of the basis of recognizing the group: The combination of the ageing status of accounts
receivable as a credit risk feature.
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:
Disclosure by aging
In RMB
|||
|-|-|
|Aging|Closing balance|
|Within 1 year|594,006.80|
|Including：Subtotal within 1 year|594,006.80|

|||
|-|-|
|Total|594,006.80|

 (2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debtprovision：
In RMB
|||||||
|-|-|-|-|-|-|
|||Amount of change in the current period||||
|Category|Opening balance||Reversed or||Closing balance|
|||Accrual||Write-off||
||||collected amount|||
|Accrual of bad debt||||||
|provision by|28,523.59|1,176.75|||29,700.34|
|portfolio:||||||
|Total|28,523.59|1,176.75|||29,700.34|

 (3) The actual write-off accounts receivable
Not applicable
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
|||||
|-|-|-|-|
|Name|Closing balance|Proportion %|Balance of Bad debtprovision|
|Shenfang Building andPeripheral rent|594,006.80|100%|29,700.34|

(5) Account receivable which terminate the recognition owning to the transfer of the financial assets Nil
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
Nil
2. Other accounts receivable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Interest receivable|6,737,221.93|4,974,799.47|
|Other accounts receivable|8,403,787.65|8,881,582.55|
|Total|15,141,009.58|13,856,382.02|

（1）Interest receivable
1) Category of interest receivable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Fixed deposit|537,095.34|884,141.92|
|Structure deposit|6,200,126.59|4,090,657.55|
|Total|6,737,221.93|4,974,799.47|

 2) Significant overdue interest
Nil
3）Bad-debt provision
□ Applicable√ Not applicable
(2)Dividend receivable
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|8,575,600.00|8,578,542.00|
|Unit account|14,951,143.71|15,451,143.71|
|Other|35,200.01|35,200.01|
|Total|23,561,943.72|24,064,885.72|

2）Bad-debt provision
In RMB
||||||
|-|-|-|-|-|
||Stage 1|Stage 2|Stage 3||
||Expected credit||Expected credit losses for||
|Bad Debt Reserves||Expected credit loss over||Total|
||losses over the next||the entire duration (credit||
|||life (no credit impairment)|||
||12 months||impairment occurred)||
|Balance as at January 1,|||||
|||1,090,352.22|14,092,950.95|15,183,303.17|
|2019|||||
|Balance as at January 1,|||||
||——|——|——|——|
|2019 in current|||||

|||||
|-|-|-|-|
|Turn back in the current||||
||25,147.10||25,147.10|
|period||||
|Balance as at June 30|1,065,205.12|14,092,950.9|5 15,158,156.07|

 Loss provision changes in current period, change in book balance with significant amount
□ Applicable√Not applicable
Disclosure by aging
In RMB
|||
|-|-|
|Aging|Closing balance|
|Within 1 year(Including 1 year）|3,745,284.22|
|Including：Subtotal within 1 year|3,745,284.22|
|1-2 years|4,454,759.77|
|2-3 years|2,810,047.30|
|Over 3 years|12,551,852.43|
|Over 5 years|12,551,852.43|
|Total|23,561,943.72|

 3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debtprovision：
In RMB
||||||
|-|-|-|-|-|
|||Amount of change in the current period|||
|Category|Opening balance||Reversed or collected|Closing balance|
|||Accrual|||
||||amount||
|Accrual of bad debt|||||
||1,090,352.22||25,147.10|1,065,205.12|
|provision by portfolio|||||
|Accrual of bad debt|||||
||14,092,950.95|||14,092,950.95|
|provision by single item|||||
|Total|15,183,303.17||25,147.10|15,158,156.07|

 The company's provision for bad debts of other receivables is based on the expected loss method, and the credit loss of other receivables is expected throughout the duration. For other receivables with similar risk characteristics, the company combines them according to aging status, and the expected credit loss rate corresponding to aging is shown in this Section V, Important Accounting Policies and Other Receivables in Accounting Estimates; At the end of the period, other receivables that have objective evidence of impairment are individually tested for impairment, and impairment losses are recognized and provision for bad debts is made according to the difference between the present value of the estimated future cash flow and its book value.
As of the end of the reporting period, the balance of other receivables combined by aging and
provision for bad debts are shown in the following table:
|||||
|-|-|-|-|
|Aging|Closing balance|||
||Other account receivable|Provision for bad debts|Expected loss rate（%）|
|Within 1 year|3,745,284.22|187,264.21|5.00|
|1-2 years|4,454,759.77|445,475.98|10.00|
|2-3 years|1,010,047.30|303,014.19|30.00|
|Over 3 years|258,901.48|129,450.74|50.00|
|Total|9,468,992.77|1,065,205.12||

(4) Other account receivables actually cancel after write-off
Nil
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
|||||||
|-|-|-|-|-|-|
|||||Portion in total other|Bad debt provision|
|Name|Nature|Year-end balance|Age|||
|||||receivables(%)|of year-end balance|
|First|Unit account|11,389,044.60|Over 5 years|48.34%|11,389,044.60|
||Internal current|||||
|Second||8,575,600.00|1-3 years|36.40%|912,800.00|
||account|||||
|Third|Unit account|1,800,000.00|2-3 years|7.64%|1,800,000.00|
|Fourth|Unit account|783,579.12|1-2 years|3.33%|61,916.94|
|Fifth|Unit account|592,420.00|Over 5 years|2.51%|592,420.00|
|Total|--|23,140,643.72|--|98.21%|14,756,181.54|

 (6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts receivable
Nil
3. Long-term equity investment
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Items||Provision for|||Provision forimpairment||
||Book balance||Book value|Book balance||Book value|
|||impairment|||||
|Investments insubsidiaries|||||||
||1,968,806,395.91|16,582,629.30|1,952,223,766.61|1,980,806,395.91|16,582,629.30|1,964,223,766.61|
|Investments inassociates andjoint ventures|||||||
||163,733,127.58||163,733,127.58|32,952,085.66||32,952,085.66|
||2,132,539,523.49|16,582,629.30|2,115,956,894.19|2,013,758,481.57|16,582,629.30|1,997,175,852.27|
|Total|||||||

（1）Investment to the subsidiary
In RMB
||||||||
|-|-|-|-|-|-|-|
||||||Withdrawn||
|||||||Closing balance|
||||||impairment||
|Name|Opening balance|Increase|Decrease|Closing balance||of impairment|
||||||provision in the||
|||||||provision|
||||||reporting period||
|Shenzhen Shengbo|||||||
|Optoelectronic|||||||
||1,910,247,781.94|||1,910,247,781.94||14,415,288.09|
|Technology Co.,|||||||
|Ltd.|||||||
|Shenzhen Lisi|||||||
|Industrial|||||||
||8,073,388.25|||8,073,388.25|||
|Development Co.,|||||||
|Ltd.|||||||
|Shenzhen Beauty|||||||
|Century Garment|28,700,058.79||12,000,000.00|16,700,058.79||2,167,341.21|
|Co., Ltd.|||||||
|Shenzhen|||||||
||15,489,351.08|||15,489,351.08|||
|Huaqiang Hotel|||||||
|Shenfang Property|||||||
|Management Co.,|1,713,186.55|||1,713,186.55|||
|Ltd.|||||||
|Total|1,964,223,766.61||12,000,000.00|1,952,223,766.61||16,582,629.30|

（2）Investment to joint ventures and associated enterprises
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase /decrease in reporting period|||||||||Closing|
||||||||||||balance|
||||||||Declaration of cashdividendsor profit|||||
||||Decrease|Gain/loss|Adjustme|||Withdraw||||
||Opening|Add||||Other||||Closing|of|
|Name|||d|of|nt of|||n||||
||balance|investmen||||equity|||Other|balance|impairme|
||||investmen|Investme|other|||impairme||||
|||t||||changes|||||nt|
||||t|nt c|omprehe|||nt||||
||||||||||||provision|

||||||||||
|-|-|-|-|-|-|-|-|-|
|||||nsive||provision|||
|||||income|||||
|I. Joint ventures|||||||||
|Shenzhen|||||||||
|Haohao|||||||||
||5,641,139||637,149.7||2,000,000|||4,278,289|
|Property|||||||||
||.93||1||.00|||.64|
|Leasing|||||||||
|Co., Ltd.|||||||||
|Anhui|||||||||
|Huapeng|11,784,62||-912,673.|||||10,871,95|
|Textile|6.51||03|||||3.48|
|Co.,Ltd.|||||||||
|Shenzhen|||||||||
|Guanhua|||||||||
|||65,503,36|-520,438.||||67,584,49|132,567,4|
|Printing|||||||||
|||0.10|51||||7.83|19.42|
|& Dyeing|||||||||
|Co., Ltd.|||||||||
|Shenzhen|||||||||
|Xieli|||||||||
|Automobi||||||||0.00|
|le Co.,|||||||||
|Ltd.|||||||||
||17,425,76|65,503,36|-795,961.||2,000,000||67,584,49|147,717,6|
|Subtotal|||||||||
||6.44|0.10|83||.00||7.83|62.54|
|II. Associated enterprises|||||||||
|Shenzhen|||||||||
|Changlian|||||||||
|fa|||||||||
||2,234,057|||||||2,316,173|
|Printing|||82,115.91||||||
||.19|||||||.10|
|and|||||||||
|dyeing|||||||||
|Company|||||||||
|Jordan|||||||||
||2,363,614||-202,853.|674,303.1||||2,835,064|
|Garnent|||||||||
||.70||10|7||||.77|
|Factory|||||||||
|Yehui|||||||||
|Internatio|10,928,64||-197,358.|132,938.3||||10,864,22|
|nal Co.,|7.33||53|7||||7.17|
|Ltd.|||||||||
||15,526,31||-318,095.|807,241.5||||16,015,46|
|Subtotal|||||||||
||9.22||72|4||||5.04|

|||||||||
|-|-|-|-|-|-|-|-|
||32,952,085.66|65,503,36|-1,114,05|807,241.5|2,000,000|67,584,49|163,733,127.58|
|Total||||||||
|||0.10|7.55|4|.00|7.83||

（3）Other notes
The other amount of Guanhua Printing& Dyeing Company is to convert Guanhua Printing& Dyeing Investment from other equity instruments to long-term equity investment.
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|||||
||33,021,263.65|4,357,490.45|31,576,065.65|5,166,425.81|
|Business|||||
|Other Business income|1,572,244.63|1,572,244.63|1,767,833.77|1,767,833.77|
|Total|34,593,508.28|5,929,735.08|33,343,899.42|6,934,259.58|

 Whether implemented new revenue guidelines?
□ Yes√ No
5.Investment income
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Income from long-term equity investment|||
||-1,114,057.55|616,945.67|
|measured by adopting the Equity method|||
|Dividend income from investments in other|||
||908,000.00||
|equity instruments during the holding period|||
|Investment income received from holding of|||
|||574,774.15|
|available-for –sale financial assets|||
|Total|-206,057.55|1,191,719.82|

 6.Other notes
Nil
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|12,236,686.25||
|Govemment subsidy recognized in current|||
|gain and loss(excluding those closely related|||
||11,035,139.06||
|to the Company’s business and granted|||
|under the state’s policies)|||

||||
|-|-|-|
|Other non-business income and expenditures|||
||4,241,169.03||
|other than the above|||
|Less :Influenced amount of income tax|3,121,789.28||
|Influenced amount of minor shareholders’|||
||6,010,334.88||
|equity (after tax)|||
|Total|18,380,870.18|--|

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
|||||
|-|-|-|-|
|||EPS（Yuan/share）||
|Profit of report period|Weighted average ROE (%)|||
|||EPS-basic|EPS-diluted|
|Net profit attributable to the||0.0153|0.0153|
|Common stock shareholders of|0.32%|||
|Company.||||
|Net profit attributable to the||||
|Common stock shareholders of||||
||-0.43%|-0.0206|-0.0206|
|Company after deducting of||||
|non-recurring gain/loss.||||

3. 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
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards
□ Applicable√Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas
accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the
foreign institutions
Not applicable
4. Other
Nil