Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Financial Report 2018
August 29, 2018
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2018 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.
June 30,2018
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|1,018,543,763.36|1,165,048,108.83|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
|Note receivable|1,668,992.95|44,207,119.00|
|Account receivable|224,607,517.07|192,503,077.70|
|Prepayments|195,851,353.47|13,755,152.05|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts|||
|receivable|||
|Interest receivable|18,833,479.86|15,728,872.62|
|Dividend receivable|||
|Other account receivable|12,418,279.70|12,925,984.45|
|Repurchasing of financial assets|||
|Inventories|329,292,048.68|275,615,176.16|
|Assets held for sales|||

||||
|-|-|-|
|Non-current asset due in 1 year|||
|Other current asset|1,120,702,098.15|1,148,689,874.10|
|Total of current assets|2,921,917,533.24|2,868,473,364.91|
|Non-current assets：|||
|Loans and payment on other’s behalf|||
|disbursed|||
|Disposable financial asset|65,355,577.27|66,035,733.04|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|20,519,573.38|20,380,734.56|
|Property investment|171,714,892.81|173,105,806.27|
|Fixed assets|1,021,301,163.50|656,133,200.19|
|Construction in progress|14,702,778.22|322,570,173.73|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|38,222,487.94|38,870,673.40|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|1,182,723.32|1,035,290.08|
|Deferred income tax asset|2,625,253.73|1,974,536.90|
|Other non-current asset|42,346,134.84|47,166,994.48|
|Total of non-current assets|1,377,970,585.01|1,327,273,142.65|
|Total of assets|4,299,888,118.25|4,195,746,507.56|
|Current liabilities|||
|Short-term loans|197,389,295.07|88,638,181.45|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||

||||
|-|-|-|
|Note payable|19,500,000.00||
|Account payable|62,207,789.24|97,104,697.18|
|Advance payment|38,236,394.76|34,952,567.83|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|18,341,973.20|29,503,260.65|
|Tax payable|8,671,873.10|6,935,262.57|
|Interest payable|47,090,395.53|45,799,544.04|
|Dividend payable|||
|Other account payable|202,634,969.35|155,026,799.54|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sales|||
|Non-current liability due in 1 year||40,000,000.00|
|Other current liability|||
|Total of current liability|594,072,690.25|497,960,313.26|
|Non-current liabilities：|||
|Long-term loan|40,000,000.00|40,000,000.00|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Long-term payable employees’s|||
|remuneration|||
|Special payable|||
|Expected liabilities|||
|Deferred income|134,350,896.96|134,767,064.72|
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total non-current liabilities|174,350,896.96|174,767,064.72|
|Total of liability|768,423,587.21|672,727,377.98|
|Owners’ equity|||

||||
|-|-|-|
|Share capital|511,274,149.00|511,274,149.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|1,869,452,669.17|1,866,001,475.17|
|Less：Shares in stock|||
||27,230,679.00|27,230,679.00|
|Other comprehensive income|1,828,936.20|2,218,703.87|
|Special reserves|||
|Surplus reserves|77,477,042.19|77,477,042.19|
|Common risk provision|||
|Undistributed profit|-22,619,111.29|-32,266,087.44|
|Total of owner’s equity belong to the|||
||2,410,183,006.27|2,397,474,603.79|
|parent company|||
|Minority shareholders’ equity|1,121,281,524.77|1,125,544,525.79|
|Total of owners’ equity|3,531,464,531.04|3,523,019,129.58|
|Total of liabilities and owners’ equity|4,299,888,118.25|4,195,746,507.56|

 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
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|383,109,930.25|413,700,327.95|
|Financial assets measured at fair value|||
|with variations accounted into current|||
|income account|||
|Derivative financial assets|||
|Note receivable|||
|Account receivable|546,368.83|449,536.21|

||||
|-|-|-|
|Prepayments|38,820.00|10,000.00|
|Interest receivable|18,735,478.37|13,660,866.80|
|Dividend receivable|||
|Other account receivable|12,636,498.23|5,782,620.63|
|Inventories|||
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|160,000,000.00|120,000,000.00|
|Total of current assets|575,067,095.68|553,603,351.59|
|Non-current assets：|||
|Disposable financial asset|35,355,577.27|36,035,733.04|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|1,987,829,417.05|1,984,849,008.23|
|Property investment|164,478,188.20|165,607,900.07|
|Fixed assets|27,351,496.92|28,119,990.58|
|Construction in progress|||
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|1,212,840.21|1,413,305.67|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|||
|Differed income tax asset|2,252,235.59|1,526,871.33|
|Other non-current asset||493,620.44|
|Total of non-current assets|2,218,479,755.24|2,218,046,429.36|
|Total of assets|2,793,546,850.92|2,771,649,780.95|
|Current liabilities|||
|Short-term loans|||
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||

||||
|-|-|-|
|Derivative financial liabilities|||
|Note payable|||
|Account payable|411,743.57|411,743.57|
|Advance payment|639,024.58|639,024.58|
|Employees’ wage payable|6,298,397.27|8,495,538.21|
|Tax payable|4,961,074.06|3,247,028.64|
|Interest payable|||
|Dividend payable|||
|Other account payable|137,467,469.73|134,018,771.57|
|Liabilities held for sales|||
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|149,777,709.21|146,812,106.57|
|Non-current liabilities：|||
|Long-term loan|||
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Employees’ wage payable|||
|Special payable|||
|Expected liabilities|||
|Differed income|750,000.00|800,000.00|
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total of Non-current liabilities|750,000.00|800,000.00|
|Total of liability|150,527,709.21|147,612,106.57|
|Owners’ equity|||
|Share capital|511,274,149.00|511,274,149.00|
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|1,603,658,924.96|1,599,381,854.96|

||||
|-|-|-|
|Less：Shares in stock|||
||27,230,679.00|27,230,679.00|
|Other comprehensive income|1,828,936.20|2,218,703.87|
|Special reserves|||
|Surplus reserves|77,477,042.19|77,477,042.19|
|Undistributed profit|476,010,768.36|460,916,603.36|
|Total of owners’ equity|2,643,019,141.71|2,624,037,674.38|
|Total of liabilities and owners’ equity|2,793,546,850.92|2,771,649,780.95|

 3.Consolidated Income statement
In RMB
||||
|-|-|-|
|Items|Report period|Same period of the previous year|
|I. Income from the key business|538,288,050.61|739,337,756.87|
|Incl：Business income|||
||538,288,050.61|739,337,756.87|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|562,709,531.95|747,682,301.68|
|Incl：Business cost|||
||479,118,600.37|677,617,195.79|
|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|3,840,556.12|6,589,017.85|
|Sales expense|3,780,411.53|4,007,043.14|
|Administrative expense|62,428,219.55|40,846,568.49|
|Financial expenses|-3,852,587.66|-12,037,356.58|
|Asset impairment loss|17,394,332.04|30,659,832.99|
|Add：Gains from change of fir value|||

||||
|-|-|-|
|（“-”for loss）|||
|Investment gain（“-”for loss）|||
||28,552,710.15|22,955,035.39|
|Incl: investment gains from affiliates|616,945.67|220,115.63|
|Gains from currency exchange|||
|Assets dispose loss|||
|Other income|5,812,167.76|5,143,961.90|
|III. Operational profit（ “-” for loss）|||
||9,943,396.57|19,754,452.48|
|Add ：Non-operational income|89,905.17|528,419.77|
|Less：Non-business expenses|||
||153,338.08|3,478.36|
|IV.Total profit (“-” for loss)|9,879,963.66|20,279,393.89|
|Less：Income tax expenses|||
||5,321,864.53|7,742,958.27|
|V. Net profit|4,558,099.13|12,536,435.62|
|1.Net continuing operating profit|4,558,099.13|12,536,435.62|
|2.Termination of operating net profit|||
|Net profit attributable to the owners of|||
||9,646,976.15|14,457,841.63|
|parent company|||
|Minority shareholders’ equity|-5,088,877.02|-1,921,406.01|
|VI.Net of profit of other comprehensive i|||
||-389,767.67|-74,028.91|
|ncome|||
|Net of profit of other comprehensive inco|||
|me attributable to owners of the parent co|-389,767.67|-74,028.91|
|mpany.|||
|（I）Other comprehensive income items|||
|that will not be reclassified into|||
|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.|||
|（II）|||
||-389,767.67|-74,028.91|
|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.Gains and losses from changes in fair v|||
||-510,116.82|325,291.89|
|alue available for sale financial assets|||
|3.Held-to-maturity investments reclassifi|||
|ed to gains and losses of available for sal|||
|e financial assets|||
|4.The effective portion of cash flow hedg|||
|es and losses|||
|5.Translation differences in currency fina|||
||120,349.15|-399,320.80|
|ncial statements|||
|6.Other|||
|Net of profit of other comprehensive inco|||
|me attributable to Minority shareholders’|||
|equity|||
|VII. Total comprehensive income|4,168,331.46|12,462,406.71|
|Total comprehensive income|||
|attributable to the owner of the parent|9,257,208.48|14,383,812.72|
|company|||
|Total comprehensive income|||
||-5,088,877.02|-1,921,406.01|
|attributable minority shareholders|||
|VIII. Earnings per share|||
|（I）Basic earnings per share|||
||0.02|0.03|
|(II)Diluted earnings per share|0.02|0.03|

 The current business combination under common control, the net profits of the combined party befo re achieved net profit of RMB 0.00, last period the combined party realized RMB0.00.
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|Report period|Same period of the previous year|
|I. Income from the key business|33,343,899.42|31,849,598.03|
|Incl：Business cost|||
||6,934,259.58|6,083,265.84|
|Business tax and surcharge|1,458,413.46|1,364,623.95|
|Sales expense|||
|Administrative expense|14,436,569.89|10,388,438.80|
|Financial expenses|-7,833,271.26|-6,361,722.17|
|Asset impairment loss|365,826.86|-3,652,130.67|
|Add：Gains from change of fir value|||
|（“-”for loss）|||
|Investment gain（“-”for loss）|||
||1,191,719.82|2,146,702.07|
|Incl: investment gains from affiliates|616,945.67|220,115.63|
|Assets disposal income|||
|Other income|50,000.00||
|II. Operational profit（ “-” for loss）|||
||19,223,820.71|26,173,824.35|
|Add ：Non-operational income|79,604.02|1,510.00|
|Less：Non-business expenses|||
|||1,582.15|
|III.Total profit (“-” for loss)|19,303,424.73|26,173,752.20|
|Less：Income tax expenses|||
||4,209,259.73|6,378,081.15|
|IV. Net profit（ “-” for net loss）|||
||15,094,165.00|19,795,671.05|
|1.Net continuing operating profit|15,094,165.00|19,795,671.05|
|2.Termination of operating net profit|||
|V.Net of profit of other comprehensive i|||
||-389,767.67|-74,028.91|
|ncome|||
|（I）Other comprehensive income|||
|items that will not be reclassified into|||
|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.|||
|（ II ）|||
|Other comprehensive income that will b|-389,767.67|-74,028.91|
|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.Gains and losses from changes in fair|||
||-510,116.82|325,291.89|
|value available for sale financial assets|||
|3.Held-to-maturity investments reclassif|||
|ied to gains and losses of available for s|||
|ale financial assets|||
|4.The effective portion of cash flow hed|||
|ges and losses|||
|5.Translation differences in currency fin|||
||120,349.15|-399,320.80|
|ancial statements|||
|6.Other|||
|VI. Total comprehensive income|14,704,397.33|19,721,642.14|
|VII. Earnings per share：|||
|（I）Basic earnings per share|||
|(II)Diluted earnings per share|||

5. Consolidated Cash flow statement
In RMB
||||
|-|-|-|
|Items|Report period|Same period of the previous year|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or|||
||510,486,141.19|795,578,837.63|
|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|||
|Net increase of trade financial asset|||
|disposal|||
|Cash received as interest, processing fee|||
|and commission|||
|Net increase of inter-bank fund received|||
|Net increase of repurchasing business|||
|Tax returned|24,120,883.81|23,710,137.30|
|Other cash received from business|||
||26,160,799.70|35,648,684.61|
|operation|||
|Sub-total of cash inflow|560,767,824.70|854,937,659.54|
|Cash paid for purchasing of|||
||560,096,998.00|737,896,239.33|
|merchandise and services|||
|Net increase of client trade and advance|||
|Net increase of savings n central bank|||
|and brother company|||
|Cash paid for original contract claim|||
|Cash paid for interest, processing fee|||
|and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|76,371,093.88|69,775,248.99|
|Taxes paid|27,570,325.99|53,257,411.02|
|Other cash paid for business activities|25,580,296.27|92,185,161.14|
|Sub-total of cash outflow from business|||
||689,618,714.14|953,114,060.48|
|activities|||
|Cash flow generated by business|||
||-128,850,889.44|-98,176,400.94|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
|retrieving|||
|Cash received as investment gains|1,673,214.15|3,781,185.22|

||||
|-|-|-|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|26,597.81|1,740.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||
|Other investment-related cash received|1,903,828,974.66|2,205,083,032.64|
|Sub-total of cash inflow due to|||
||1,905,528,786.62|2,208,865,957.86|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets|156,659,802.66|131,421,510.57|
|and other long-term assets|||
|Cash paid as investment|||
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and|||
|other operational units|||
|Other cash paid for investment|||
||1,830,500,000.00|1,883,000,000.00|
|activities|||
|Sub-total of cash outflow due to|||
||1,987,159,802.66|2,014,421,510.57|
|investment activities|||
|Net cash flow generated by investment|-81,631,016.04|194,444,447.29|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Incl: Cash received as investment from|||
|minor shareholders|||
|Cash received as loans|275,474,786.49|51,181,623.57|
|Cash received from bond placing|||
|Other financing –related ash received||6,809,000.00|
|Sub-total of cash inflow from financing|||
||275,474,786.49|57,990,623.57|
|activities|||
|Cash to repay debts|209,562,972.59|66,068,073.78|
|Cash paid as dividend, profit, or|||
||1,439,654.15||
|interests|||
|Incl: Dividend and profit paid by|||
|subsidiaries to minor shareholders|||
|Other cash paid for financing activities|||
|Sub-total of cash outflow due to|||
||211,002,626.74|66,068,073.78|
|financing activities|||

||||
|-|-|-|
|Net cash flow generated by financing|64,472,159.75|-8,077,450.21|
|IV. Influence of exchange rate|||
||-494,599.74|-668,409.25|
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||-146,504,345.47|87,522,186.89|
|equivalents|||
|Add: balance of cash and cash|||
||1,161,240,139.33|930,114,436.57|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||1,014,735,793.86|1,017,636,623.46|
|equivalents at the end of term|||

6. Cash Flow Statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or|||
||34,341,479.70|32,697,766.87|
|rending of services|||
|Tax returned|||
|Other cash received from business|||
||6,186,752.60|12,894,925.40|
|operation|||
|Sub-total of cash inflow|40,528,232.30|45,592,692.27|
|Cash paid for purchasing of|||
||2,734,504.18|1,748,604.45|
|merchandise and services|||
|Cash paid to staffs or paid for staffs|10,002,845.66|8,290,247.88|
|Taxes paid|7,067,139.21|8,145,004.75|
|Other cash paid for business activities|12,230,536.71|8,891,199.29|
|Sub-total of cash outflow from business|||
||32,035,025.76|27,075,056.37|
|activities|||
|Cash flow generated by business|||
||8,493,206.54|18,517,635.90|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
|retrieving|||
|Cash received as investment gains|1,673,214.15|3,781,185.22|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|24,597.81|1,510.00|
|long-term assets|||
|Net cash received from disposal of|||

||||
|-|-|-|
|subsidiaries or other operational units|||
|Other investment-related cash received|763,589.50|80,000,000.00|
|Sub-total of cash inflow due to|||
||2,461,401.46|83,782,695.22|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets|1,545,005.70|1,371,469.00|
|and other long-term assets|||
|Cash paid as investment|||
|Net cash received from subsidiaries and|||
|other operational units|||
|Other cash paid for investment|||
||40,000,000.00|160,000,000.00|
|activities|||
|Sub-total of cash outflow due to|||
||41,545,005.70|161,371,469.00|
|investment activities|||
|Net cash flow generated by investment|-39,083,604.24|-77,588,773.78|
|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|||
|Sub-total of cash outflow due to|||
|financing activities|||
|Net cash flow generated by financing|||
|IV. Influence of exchange rate|||
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||-30,590,397.70|-59,071,137.88|
|equivalents|||
|Add: balance of cash and cash|||
||413,700,327.95|440,685,610.11|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||383,109,930.25|381,614,472.23|
|equivalents at the end of term|||

7. Consolidated Statement on Change inOwners’ Equity
Amount in this period
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in this period|||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||||
|||Other Equity||||||||||Minor||
|||instrument|||||Other|||Commo|Undist||Total of|
|Items||||||||||||||
|||||||||||||shareho||
||ShareCapita|prefer|||Capital|Less:Shares|Compre|Specialized|Surplus|n risk|ribute|lders’|owners’|
||l|red|Sustai|Other|reserves|in stock|hensive|reserve|reserves|provisio|d|equity|equity|
|||stock|nabledebt||||Income|||n|profit|||
||511,2||||1,866,|27,230|||77,477||-32,26|1,125,|3,523,|
|I.Balance at the|||||||2,218,|||||||
||74,14||||001,47|,679.0|||,042.1||6,087.|544,52|019,12|
|end of last year|||||||703.87|||||||
||9.00||||5.17|0|||9||44|5.79|9.58|
|Add: Change of||||||||||||||
|accounting||||||||||||||
|policy||||||||||||||
|Correcting of||||||||||||||
|previous errors||||||||||||||
|Merger of entities||||||||||||||
|under common||||||||||||||
|control||||||||||||||
|Other||||||||||||||
|II.Balance at the|511,2||||1,866,|27,230|||77,477||-32,26|1,125,|3,523,|
||||||||2,218,|||||||
|beginning of|74,14||||001,47|,679.0|||,042.1||6,087.|544,52|019,12|
||||||||703.87|||||||
|current year|9.00||||5.17|0|||9||44|5.79|9.58|
|||||||||||||-4,263||
|III.Changed in the|||||3,451,||-389,7||||9,646,||8,445,|
|||||||||||||,001.0||
|current year|||||194.00||67.67||||976.15||401.46|
|||||||||||||2||
|（1）Total||||||||||||-4,263||
||||||||-389,7||||9,646,||4,994,|
|comprehensive||||||||||||,001.0||
||||||||67.67||||976.15||207.46|
|income||||||||||||2||
|（II）Investment||||||||||||||
||||||3,451,||||||||3,451,|
|or decreasing of||||||||||||||
||||||194.00||||||||194.00|
|capital by owners||||||||||||||
|1．Ordinary Share||||||||||||||
|s invested by share||||||||||||||
|holders||||||||||||||
|2．Holders of oth||||||||||||||

||||
|-|-|-|
|er equity instrume|||
|nts invested capital|||
|3．Amount of|||
|shares paid and|3,451,|3,451,|
|accounted as|194.00|194.00|
|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. Other|||
|(V). Special|||
|reserves|||
|1. Provided this|||
|year|||

||||||||||
|-|-|-|-|-|-|-|-|-|
|2．Used this term|||||||||
|（VI）Other|||||||||
||511,2|1,869,|27,230||77,477|-22,61|1,121,|3,531,464,531.04|
|IV. Balance at the||||1,828,|||||
||74,14|452,66|,679.0||,042.1|9,111.|281,52||
|end of this term||||936.20|||||
||9.00|9.17|0||9|29|4.77||

 Amount in last year
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year|||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||||
|||Other Equity||||||||||||
|||||||||||||Minor||
|||instrument|||||Other|||Commo|Undist||Total of|
|Items||||||||||||||
||Share|||||Less:||Speciali||||shareho||
||||||Capital||Compre||Surplus|n risk|ribute||owners’|
||Capita|prefer||||Shares||zed||||lders’||
||||Sustai||reserves||hensive||reserves|provisio|d||equity|
||l|red||Other||in stock||reserve||||equity||
||||nable||||Income|||n|profit|||
|||stock||||||||||||
||||debt|||||||||||
||506,5||||1,837,||||73,710||-81,27|1,100,|3,440,|
|I.Balance at the|||||||3,392,|||||||
||21,84||||205,25||||,682.0||5,828.|564,80|118,98|
|end of last year|||||||222.07|||||||
||9.00||||1.95||||5||76|5.80|2.11|
|Add: Change of||||||||||||||
|accounting||||||||||||||
|policy||||||||||||||
|Correcting of||||||||||||||
|previous errors||||||||||||||
|Merger of entities||||||||||||||
|under common||||||||||||||
|control||||||||||||||
|Other||||||||||||||
|II.Balance at the|506,5||||1,837,||||73,710||-81,27|1,100,|3,440,|
||||||||3,392,|||||||
|beginning of|21,84||||205,25||||,682.0||5,828.|564,80|118,98|
||||||||222.07|||||||
|current year|9.00||||1.95||||5||76|5.80|2.11|
||4,752||||28,796|27,230|-1,173||||49,009|24,979|82,900|
|III.Changed in the|||||||||3,766,|||||
||,300.||||,223.2|,679.0|,518.2||||,741.3|,719.9|,147.4|
|current year|||||||||360.14|||||
||00||||2|0|0||||2|9|7|
|（1）Total|||||||-1,173||||52,776|20,885|72,488|
|comprehensive|||||||,518.2||||,101.4|,576.4|,159.6|
|income|||||||0||||6|1|7|
|（II）Investment|4,752||||22,762|27,230|||||||284,49|
|or decreasing of|,300.||||,870.5|,679.0|||||||1.54|

||||||||
|-|-|-|-|-|-|-|
|capital by owners|00|4|0||||
|1．Ordinary Share|4,752|22,478|27,230||||
|s invested by share|,300.|,379.0|,679.0||||
|holders|00|0|0||||
|2．Holders of oth|||||||
|er equity instrume|||||||
|nts invested capital|||||||
|3．Allotment to the|||||||
|||284,49||||284,49|
|owners (or||1.54||||1.54|
|shareholders)|||||||
|4．Other|||||||
||||||-3,766||
|（III）Profit||||3,766,|||
||||||,360.1||
|allotment||||360.14|||
||||||4||
||||||-3,766||
|1.Providing of||||3,766,|||
||||||,360.1||
|surplus reserves||||360.14|||
||||||4||
|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. Other|||||||
|(V) Special|||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|reserves|||||||||
|1. Provided this|||||||||
|year|||||||||
|2．Used this term|||||||||
|||||||||10,127|
|||6,033,|||||4,094,||
|（VI）Other||||||||,496.2|
|||352.68|||||143.58||
|||||||||6|
||511,2|1,866,|27,230||77,477|-32,26|1,125,|3,523,|
|IV. Balance at the||||2,218,|||||
||74,14|001,47|,679.0||,042.1|6,087.|544,52|019,12|
|end of this term||||703.87|||||
||9.00|5.17|0||9|44|5.79|9.58|

 8.Statement of change inowner’s Equity of the Parent Company
Amount in this period
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in this period|||||||||||
|||Other Equity instrument||||||||||
||||||||Other|||Undist||
|||||||Less:|||||Total of|
|Items|Share||||Capital||Compreh|Specialize|Surplus|ribute||
|||preferre|Sustain|||Shares in|||||owners’|
||Capital|||Other|reserves||ensive|d reserve|reserves|d||
|||d stock|able|||stock|||||equity|
||||||||Income|||profit||
||||debt|||||||||
|||||||||||460,91||
|I.Balance at the|511,274||||1,599,38|27,230,6|2,218,70||77,477,0||2,624,03|
|||||||||||6,603.||
|end of last year|,149.00||||1,854.96|79.00|3.87||42.19||7,674.38|
|||||||||||36||
|Add: Change of||||||||||||
|accounting||||||||||||
|policy||||||||||||
|Correcting of||||||||||||
|previous errors||||||||||||
|Other||||||||||||
|II.Balance at the||||||||||460,91||
||511,274||||1,599,38|27,230,6|2,218,70||77,477,0||2,624,03|
|beginning of||||||||||6,603.||
||,149.00||||1,854.96|79.00|3.87||42.19||7,674.38|
|current year||||||||||36||
|||||||||||15,094||
|III.Changed in the|||||4,277,07||-389,767||||18,981,4|
|||||||||||,165.0||
|current year|||||0.00||.67||||67.33|
|||||||||||0||
|（I）Total||||||||||15,094||
||||||||-389,767||||14,704,3|
|comprehensive||||||||||,165.0||
||||||||.67||||97.33|
|income||||||||||0||

||||
|-|-|-|
|(II) Investment or|||
||4,277,07|4,277,07|
|decreasing of|||
||0.00|0.00|
|capital by owners|||
|1．Ordinary Share|||
|s invested by share|||
|holders|||
|2．Holders of oth|||
|er equity instrume|||
|nts invested capital|||
|3.Amount of|||
|shares paid and|4,277,07|4,277,07|
|accounted as|0.00|0.00|
|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. Other|||
|(V) Special|||
|reserves|||

|||||||||
|-|-|-|-|-|-|-|-|
|1. Provided this||||||||
|year||||||||
|2．Used this term||||||||
|（VI）Other||||||||
|||||||476,01|2,643,019,141.71|
|IV. Balance at the|511,274|1,603,65|27,230,6|1,828,93|77,477,0|||
|||||||0,768.||
|end of this term|,149.00|8,924.96|79.00|6.20|42.19|||
|||||||36||

 Amount in last year
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year|||||||||||
|||Other Equity instrument||||||||||
||||||||Other|||Undist||
|||||||Less:|||||Total of|
|Items|Share||||Capital||Compreh|Specialize|Surplus|ribute||
|||preferre|Sustain|||Shares in|||||owners’|
||Capital|||Other|reserves||ensive|d reserve|reserves|d||
|||d stock|able|||stock|||||equity|
||||||||Income|||profit||
||||debt|||||||||
|||||||||||427,01||
|I.Balance at the|506,521||||1,576,54||3,392,22||73,710,6||2,587,19|
|||||||||||9,362.||
|end of last year|,849.00||||7,075.96||2.07||82.05||1,191.19|
|||||||||||11||
|Add: Change of||||||||||||
|accounting||||||||||||
|policy||||||||||||
|Correcting of||||||||||||
|previous errors||||||||||||
|Other||||||||||||
|II.Balance at the||||||||||427,01||
||506,521||||1,576,54||3,392,22||73,710,6||2,587,19|
|beginning of||||||||||9,362.||
||,849.00||||7,075.96||2.07||82.05||1,191.19|
|current year||||||||||11||
|||||||||||33,897||
|III.Changed in the|4,752,3||||22,834,7|27,230,6|-1,173,5||3,766,36||36,846,4|
|||||||||||,241.2||
|current year|00.00||||79.00|79.00|18.20||0.14||83.19|
|||||||||||5||
|（I）Total||||||||||37,663||
||||||||-1,173,5||||36,490,0|
|comprehensive||||||||||,601.3||
||||||||18.20||||83.19|
|income||||||||||9||
|(II) Investment or||||||||||||
||4,752,3||||22,834,7|27,230,6|||||356,400.|
|decreasing of||||||||||||
||00.00||||79.00|79.00|||||00|
|capital by owners||||||||||||
|1．Ordinary Share|4,752,3||||22,478,3|27,230,6||||||

||||||||
|-|-|-|-|-|-|-|
|s invested by share|00.00|79.00|79.00||||
|holders|||||||
|2．Holders of oth|||||||
|er equity instrume|||||||
|nts invested capital|||||||
|3.Amount of|||||||
|shares paid and||356,400.||||356,400.|
|accounted as||00||||00|
|owners’ equity|||||||
|4．Other|||||||
|（III）Profit|||||-3,766||
|||||3,766,36|||
||||||,360.1||
|||||0.14|||
|allotment|||||4||
||||||-3,766||
|1.Providing of||||3,766,36|||
||||||,360.1||
|surplus reserves||||0.14|||
||||||4||
|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. Other|||||||
|(V) Special|||||||
|reserves|||||||
|1. Provided this|||||||
|year|||||||

|||||||||
|-|-|-|-|-|-|-|-|
|2．Used this term||||||||
|（VI）Other||||||||
|||||||460,91||
|IV. Balance at the|511,274|1,599,38|27,230,6|2,218,70|77,477,0||2,624,03|
|||||||6,603.||
|end of this term|,149.00|1,854.96|79.00|3.87|42.19||7,674.38|
|||||||36||

 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 by the Board of Directors of the Group on August 27,2018.
As of the end of the reporting period, there are 7 subsidiaries companies included in the consolidate d 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:
The following important accounting policies and accounting estimates of the Company are
formulated in accordance with the Accounting Standards for Business Enterprises. Businesses not mentioned are implemented in accordance with the relevant accounting policies in the Accounting Standards for Business Enterprises.
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
Normalbusiness cycle is realized by the Companyin cash or cash equivalentsfromthepurchaseofassetsfor mpocessing 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 transations 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 valueoftheacquiree'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 partieshave 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, andobligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the Company has rights to the net assets of thearrangement.
(2)Co-operation accounting treatment
When the joint venture company for joint operations, confirm the following items and share commo n business interests related to:
（1）Confirm individual assets and common assets held based on shareholdings;
（2）Confirm individual liabilities and shared liabilities held based on shareholdings;
（3）Confirm the income from the sales revenue of co-operate business output
（4）Confirm the income from the sales of the co-operate business output based on shareholdings;（5）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 tools
One financial asset or financial liability shall be recognized when the company becomes the party in the financial instrument contract. The financial assets and the financial liabilities are measured at the fair value in the initial recognition. For the financial assets and liabilities that measured at the fair values and the variation included in the current profits and losses, the relative transaction expenses shall be directly recorded into the profits and losses. For the financial assets and liabilities of other categories, the expenses related to transactions are recognized as initial amount.
1 Determination of financial assets andliabilities’ fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in anarm’s length transaction. For a financial instrument which has an active market, the Company uses quoted price in the active market to establish its fair value. The
quoted price in the active market refers to the price that can be regularly obtained from exchange market, agencies, industry associations, pricing authorities; it represents the fair market trading price in the actual transaction. For a financial instrument which does not have an active market, the Company establishes fair value by using a valuation technique. Valuation techniques include using recentarm’s length market transactions between knowledgeable, willing parties, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models.
2. Classification, recognition and measurement of financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. On initial recognition, theCompany’s financial assets are classified into including financial assets at fair value though profit or loss, held-to maturity investments, loans and receivables and available-for-trade assets.
（1） Financial assets at fair value through profit or loss:
Including financial assets held-for-trade and financial assets designated at fair value through profit or loss.Financial asset held-for-trade is the financial asset that meets one of the following conditions: A. the financial asset is acquired for the purpose of selling it in a short term;
B. the financial asset is a part of a portfolio of identifiable financial instruments that are collectively managed, and there is objective evidence indicating that the enterprise recently manages this portfolio for the purpose of short-term profits;
C. the financial asset is a derivative, except for a derivative that is designated and effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price from an active market) whose fair value cannot be reliably measured. For such kind of financial assets, fair values are adopted for subsequent measurement.
Financial asset is designated on initial recognition as at fair value through profit or loss only when it meets one of the following conditions:
A. the designation eliminates or significantly reduces the inconsistency in the measurement or recognition of relevant gains or losses that would otherwise arise from measuring the financial instruments on different bases.
B. a Group of financial instruments is managed and its performance is evaluated on a fair value basis, and is reported to theenterprise’s key management personnels. Formal documentation regarding risk management or investment strategy hasprepared。
Financial assets at fair value through profit or loss are subsequently measured at the fair value. Any gains or losses arising from changes in the fair value and any dividends or interest income earned on the financial assets are recognized in the profit or loss.
（2）Investment held-to maturity
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity. Such kind
of financial assets are subsequently measured at amortized cost using the effective interest method. Gains or losses arising from derecognition, impairment or amortization are recognized in profit or loss for the current period.
Effective interest rate is the rate that exactly discounted estimated future cash flows through the expected life of the financial asset or financial liability or, where appropriate, a shorter period to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Company shall estimate future cash flow considering all contractual terms of the financial asset or financial liability without considering future credit losses, and also consider all fees paid or received between the parties to the contract giving rise to the financial asset and financial liability that are an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.（3）Loans and receivables
Loans and receivables are non-derivative financial assets with fixed determinable payment that are not quoted in an active market. Financial assets classified as loans and receivables by the Company include note receivables, account receivables, interest receivable dividends receivable and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from derecognition, impairment or amortization is recognized in profit or loss.
（4）Financial assets available-for-trade
Financial assets available-for-trade include non-derivative financial assets that are designated on initial recognition as available for trade, and financial assets that are not classified as financial assets at fair value through profit or loss, loans and receivables or investment held-to-maturity.
Financial assets available-for-trade are subsequently measured at fair value, and gains or losses arising from changes in the fair value are recognized as other comprehensive income and included in the capital reserve, except that impairment losses and exchange differences related to amortized cost of monetary financial assets denominated in foreign currencies are recognized in profit or loss, until the financial assets are derecognized, at which time the gains or losses are released and recognized in profit or loss. Interests obtained and dividends declared by the investee during the period in which the financial assets available-for-trade are held, are recognized in investment gains.
3. Impairment of financial assets
The Group assesses at the balance sheet date the carrying amount of every financial asset except for the financial assets that measured by the fair value. If there is objective evidence indicating a financial asset may be impaired, a provision is provided for the impairment.
The company shall make an independent impairment test on the financial assets with significant single amounts, and carry out an independent impairment test on the financial assets with insignificant single amounts, or conduct an impairment-related test after they are included in a combination of financial assets with similar credit risk features so as to carry out. Where, upon independent test, the financial asset (including those financial assets with significant single amounts and those with insignificant amounts) has not been impaired, it shall be included in a combination of financial assets with similar risk features so as to conduct another impairment test. The financial
assets which have suffered from an impairment loss in any single amount shall not be included in any
combination of financial assets with similar risk features for any impairment test.
（1）Impairment on held-to maturity investment, loans and receivables
The financial assets measured by cost or amortized cost write down their carrying value by the estimated present value of future cash flow. The difference is recorded as impairment loss. If there is objective evidence to indicate the recovery of value of financial assets after impairment, and it is related with subsequent event after recognition of loss, the impairment loss recorded originally can be reversed. The carrying value of financial assets after impairment loss reversed shall not exceed the amortized cost of the financial assets without provisions of impairment loss on the reserving date.（2）Impairment loss on available-for-trade financial assets
Where the fair value of the equity instrument investment drops significantly or not contemporarily according to the integrated relevant factors, an available-for-trade financial asset is impaired. The "serious decline" refers to the cumulative fair value declines more than30%; "non-temporary decline" refers to the continuous decline in the fair value of time over 12 months.
When an available-for-trade financial asset is impaired, the cumulative loss arising from declining in fair value thathad been recognized in capital reserve shall be removed and recognized in profit or loss. The amount of the cumulative loss that is removed shall be difference between the acquisition cost with deduction of recoverable amount less amortized cost, current fair value and any impairment loss on that financial asset previously recognized in profit or loss.
If, after an impairment loss has been recognized, there is objective evidence that the value of the financial asset is recovered, and it is objectively related to an event occurring after the impairment loss was recognized, the initial impairment loss can be reversed and the reserved impairment loss on available-for-trade equity instrument is recorded in the profit or loss, the reserved impairment loss on available-for-trade debt instrument is recorded in the current profit or loss.
The equity instrument where there is no quoted price in an active market, and whose fair value cannot be reliably measured, or impairment loss on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument shall not be reversed.
4. Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired;
2) the enterprise has transferred its rights to receive cash flows from the asset to a third party under a pass-through arrangement; or
3) the enterprise has transferred its rights to receive cash flows from the asset and either has transferred substantially all the risks and rewards of the asset, or has neither transferred norretained substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the enterprise has neither retained all the risks and rewards from the financial asset nor control over the asset, the asset is recognized according to the extent it exists as financial asset, and correspondent liability is recognized. The extent of existence refers the level of risk by the financial asset changes the enterprise is facing.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the carrying
amount of the financial asset transferred; and the sum of the consideration received from the transfer and any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the
transferred financial asset is allocated between the part that continues to be recognized and the part that is derecognized, based on the relative fair value of those parts. The difference between (a) the carrying amount allocated to the part derecognized; and (b) the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to the part derecognized which has been previously recognized in other comprehensive income, is recognized in profit or loss.
The Company uses recourse sale financial assets, or financial assets held endorser, determine almost all of the risks and rewards of ownership of the financial assets have been transferred if. Has transferred the ownership of the financial assets of almost all the risks and rewards to the transferee, the derecognition of the financial asset; retains ownership of the financial assets of almost all of the risks and rewards of financial assets that are not derecognised; neither transfers nor retains ownership of the financial assets of almost all of the risks and rewards, then continue to determine whether the enterprise retains control of the assets and the accounting treatment in accordance with the principles described in the preceding paragraphs.
5. Classification and measurement of financial liabilities
TheGroup’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss, relevant transaction costs are immediately recognized in profit or loss for the current period, and transaction costs relating to other financial liabilities are included in the initial recognition amounts.
(1)Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the initial recognition to be measured by the fair value follows the same criteria as the classification by which financial assets held-for-trade and financial assets designed at the initial recognition to be measured by the fair value and their changes are recorded in the current profit or loss.For the financial liabilities measured by the fair value and changes recorded in the profit or loss, fair values are adopted for subsequent measurement. All the gains or losses on the change of fair value and the expenses on dividends or interests related to these financial liabilities are recognized in profit or loss for the current period.
（2）Other financial liabilities
Derivative financial liabilities that linked with equity instruments, which do not have a quoted price in an active market and their fair value cannot be measured reliably, is subsequently measured by cost Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Gains or losses arising from derecognition or amortization is recognized in profit or loss for the current period.
6. Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation
(or part of it) is discharged or cancelled or has expired. An agreement between the Company (an existing borrower) and existing lender to replace original financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new liability.
When the Company derecognizes a financial liability or a part of it, it recognizes the difference between the carrying amount of the financial liability (or part of the financial liability) derecognized the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
7. Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
8. Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. The consideration received from issuing equity instruments, net of transaction costs, are added toshareholders’ equity. All types of distribution (excluding stock dividends) made by the Company to holders of equity instruments are deducted fromshareholders’ equity. The Group does not recognize any changes in the fair value of equity instruments.
11.Accounts Receivable
1.Accounts receivable with material specific amount and specific provisioned bad debt preparation. The Client Identifies single amount of accounts receivable that is not less than RMB 1 million as account receivable that are individually significant Judgment criteria or amount standard of material specific amount
in amount. The Client Identifies single amount of or amountcriterial：
accounts receivable that is not less than RMB 0.5 million as account receivable that are individually significant in amount.
Making an independent impairment test. If any objective evidence shows that it has been impaired, Provision method with material specific amount and provision of
the impairment-related losses shall be recognized specific bad debtpreparation：
according to the gap between its present value of future cash flow less than its book value, and the several shall be determined to withdraw the bad
debt provision. If there exists no the impairment after the impairment test, they shall be included in a combination of the receivables with similar risk features so as to withdraw the bad debt provision. 2.The accounts receivable of bad debt provisions made by credit risk Group
|||
|-|-|
|Name|Withdrawing Method|
|Aging Group|Aging Analysis Method|

In Group ,Accounts on age basis in theportfolio：
√ Applicable□ Not applicable
||||
|-|-|-|
|Aging|Rate for receivables(%)|Rate for other receivables(%)|
|Within 1 year（Included 1 year）|5.00%|5.00%|
|1－2 years|||
||10.00%|10.00%|
|2－3 years|30.00%|30.00%|
|Over 3 years|50.00%|50.00%|
|3－4 years|50.00%|50.00%|
|4－5 years|50.00%|50.00%|
|Over 5 years|50.00%|50.00%|

 In Group, adopting balance percentage method for bad debtprovision：
□ Applicable√ Not applicable
In Group ,adopting other method for bad debtprovision：
□ Applicable√ Not applicable
(3)Account receivable with non-material specific amount but specific bad debt preparation
|||
|-|-|
|Reasons of Withdrawing Individual Bad DebtProvision|There is any objective evidence shows that it has been impaired.|
|Withdrawing Method of Bad Debt Provision|The impairment-related losses shall be recognized according to the gapbetween its present value of future cash flow less than its book value.|

 12. 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
（1）Low cost and short-lived consumable items
Low cost and short-lived consumable items are amortized using immediate write-offmethod。
（2）Packaging materials
Packaging materials are amortized using
13.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.
14.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 th e investor's net identifiable assets of the fair share of the investment value, do not adjust the initial in vestment cost of long-term equity investment; the initial investment cost is less than the investee uni t share 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 estimatedshare 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 financialstatements 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.
15.Investment property
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.
16.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%|
|assets|||||
|Machinery and|Straight-line method||||
|||10-14 years|4%|9.60%-6.86%|
|equipment|||||
|Transportation|Straight-line method||||
|||8 years|4%|12%|
|equipment|||||
|Electronic equipment|Straight-line method||||
|||8 years|4%|12%|
|Other equipment|Straight-line method||||
|||8 years|4%|12%|

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.
17.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.
18.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.
19.Biological Assets
Not applicable
20.Oil& Gas assets
Not applicable
21.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.
22.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.
23.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 bookkept 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.
24.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.
25. 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.
26. 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.
27. Other financial instruments such as preferred stocks and perpetual bonds
28. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry 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.
29.Government subsidy
1. Judgment Basis and Accounting Treatment Method of Government Grants related to Assets
The government grants of long-term assets that obtained, used for construction or formed by other ways, shall be recognized as the government subsidy related to the assets. The government grants related to assets are recognized as the deferred income, equally distributed within the service life of the relevant assets, and recorded into the current profits or losses.
2. Judgment Basis and Accounting Treatment Method of Government subsidy related to Income
The government subsidy related to income that used for the compensation of the related expenses or losses in subsequent period, shall be recognized as the deferred income and recorded into the current profits and losses during the period of the confirmation of relevant expenses. The relevant expenses or losses occurred for the purpose of compensation shall be directly recorded into 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.
30.The Deferred Tax Assets / The deferred Tax Liabilities
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.
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.
31.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.
32. Other important accounting policies and accounting estimates
33.Change of main accounting policies and estimations
(1)Change of main accounting policies
□ Applicable√Not applicable
（2）Change of main accounting estimations
□ Applicable√Not applicable
34.Other
VI.Taxes of the Company
1. Main taxes categories and tax rate
||||
|-|-|-|
|Taxes|Tax references|Applicable tax rates|
|||The tax rate has changed from 17% to 16%|
|VAT|The taxable turnover||
|||since May.|
|City construction tax|Turnover tax to be paid allowances|7%|
|Business income tax|Turnover tax to be paid allowances|25%、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%|

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 Administ ration of Customs and State Taxation Administration Regarding Tax Preference Policies for Furthe r Supporting the Development of New-type Display Device Industry (Cai Guan Shui (2016) No. 6 2), Shenzhen Shengbo Optoelectronic Technology Co., Ltd. manufactured key materials and parts for the upstream industry of new-type display devices including colorful light filter coating and po larizer sheet that comply with the planning for independent development of domestic industries m ay enjoy the preferential policies of exemption from import tariff for the import of raw materials a nd consumables for the purpose of self use and production that can not be produced domestically f rom January 1, 2016 and December 31, 2020.
3.Other
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Cash at hand|1,720.24|17,771.09|
|Bank deposit|1,016,522,661.15|1,163,010,967.65|
|Other monetary funds|2,019,381.97|2,019,370.09|
|Total|1,018,543,763.36|1,165,048,108.83|
|Including : The total amount of deposit|||
||8,926,677.22|9,044,548.79|
|abroad|||

Other notes
As of June 30,2018，The fixed-term deposit balance of money fund is RMB 3,807,969.50 , this part will not be treated as closing cash or closing cash equivalent in preparing cash flow statement. Monetary unit is RMB yuan
2.Financial assets measured at fair value throuth current profit and loss
□ Applicable√ Not applicable
3.Derivative financial assets
□Applicable√ Not applicable
4.Note receivables
(1) Classification note receivable
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Bank acceptance|1,668,992.95|44,207,119.00|
|Total|1,668,992.95|44,207,119.00|

（2）Note receivable endorsed or discounted by the Company as at June 30.2018 but not expired on the balance sheet date
In RMB
||||
|-|-|-|
|Items|Amount derecognizing at period –end|Amount derecognizing at period-end|
|Bank acceptance|29,995,613.18||

|||
|-|-|
|Total|29,995,613.18|

（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exuted the contract or agreement
□ Applicable√ 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||Proportion(|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n(%)||n(%)|||n(%)||%)||
|Accounts receivable|||||||||||
|of individual|||||||||||
|significance and|6,301,05||3,998,80||2,302,254|6,301,0||3,998,803||2,302,254.0|
|||2.58%||63.46%|||2.97%||63.46%||
|subject to individual|7.07||3.02||.05|57.07||.02||5|
|impairment|||||||||||
|assessment|||||||||||
|Accounts receivable|||||||||||
|subject to impairment|||||||||||
||232,443,||11,826,9||220,916,5|199,198||10,386,73||188,812,12|
|assessment by credit||95.07%||5.09%|||93.99%||5.21%||
||460.36||00.32||60.04|,855.51||4.84||0.67|
|risk characteristics of|||||||||||
|a portfolio|||||||||||
|Accounts receivable|||||||||||
|of individual|||||||||||
|insignificance but|5,748,80||4,060,10||1,388,702|6,448,8||5,060,100||1,388,702.9|
|||2.35%||70.63%|||3.04%||78.47%||
|subject to individual|3.57||0.59||.98|03.57||.59||8|
|impairment|||||||||||
|assessment|||||||||||
||244,493,||19,885,8||224,607,517.07|211,948||19,445,63||192,503,077.70|
|Total||100.00%||100.00%|||100.00%||100.00%||
||321.00||03.93|||,716.15||8.45|||

 Accounts receivable of individual significance and subject to individual impairment assessment.
√ Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Account|Amount in year-end||||
|receivable(Unit）|Account receivable|Bad debt provision|Proportion(%)|Reason for allowance|
|Dongguan Fair LCD Co.,||||It has been included in|
||1,696,548.96|1,696,548.96|100.00%||
|Ltd.||||the list of national courts|

||||||
|-|-|-|-|-|
|||||dishonest debtor, unlikely|
|||||to recover.|
|||||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.|
|Total|6,301,057.07|3,998,803.02|--|--|

 Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable□Not applicable
In RMB
|||||
|-|-|-|-|
||Balance in year-end|||
|Aging||||
||Account receivable|Bad debt provision|Proportion(%)|
|Subitem Within 1 year||||
||231,907,311.27|11,595,365.56|5.00%|
|Subtotal within 1 year|231,907,311.27|11,595,365.56|5.00%|
|1-2 years|53,684.00|5,368.40|10.00%|
|2-3 years|75,330.97|22,599.29|30.00%|
|Over 3 years|45,898.44|22,949.22|50.00%|
|3-4 years|128,940.73|64,470.37|50.00%|
|4-5 years|232,294.95|116,147.48|50.00%|
|Total|232,443,460.36|11,826,900.32||

Notes of the basis of recognizing the group:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt
provision：
□ Applicable√ Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB440,165.48 ; recovery or payback for bad
debts Amount is RMB0.00.
（3）The ending balance of account receivables owed by the imputation of the top five parties
|||||||
|-|-|-|-|-|-|
|||Balance in||Proportion(%)|Bad debt provision|
|Name|Nature||Aging|||
|||year-end||||

|||||||
|-|-|-|-|-|-|
||Goods|73,332,680.33|Within 1 year|29.99%|3,666,634.02|
|First||||||
||Goods|44,718,000.00|Within 1 year|18.29%|2,235,900.00|
|Second||||||
||Goods|32,985,000.00|Within 1 year|13.49%|1,649,250.00|
|Third||||||
||Goods|10,344,908.57|Within 1 year|4.23%|517,245.43|
|Fourth||||||
||Goods|8,047,326.72|Within 1 year|3.29%|402,366.34|
|Fifth||||||
|||169,427,915.62||69.30%|8,471,395.78|
|Total||||||

6.Prepayments
（1）Age analysis
In RMB
||||||
|-|-|-|-|-|
||Balance in year-end||Balance in year-begin||
|Aging|||||
||Amount|Proportion（%）|Amount|Proportion（%）|
|Within 1 year|195,791,204.91|99.97%|13,705,047.27|99.63%|
|1-2 years|21,988.56|0.01%|11,944.78|0.09%|
|2-3 years|38,160.00|0.02%|38,160.00|0.28%|
|Over 3 years|195,851,353.47|--|13,755,152.05|--|
|Total|||||

（2）The ending balance of Prepayments owed by the imputation of the top five parties
||||||
|-|-|-|-|-|
|Name||Balance in year-end||Proportion|
|First|131,977,638.68||67.39%||
|Second|20,300,000.00||10.37%||
|Third|20,000,000.00||10.21%||
|Fourth|9,211,650.58||4.70%||
|Fifth|6,616,600.00||3.38%||
|Total|188,105,889.26||96.05%||

7.Interest receivable
1.Category of interest receivable
In RMB
||||
|-|-|-|
|Items|Amount in year-end|Amount in year-beginng|
|Fixed deposit interest|15,203,853.00|12,676,572.40|
|Trust income||1,627,397.26|
|Structure deposit interest|3,629,626.86|1,418,738.58|
|Other financing product||6,164.38|
|TotaL|18,833,479.86|15,728,872.62|

（2）Important overdue interest
□Applicable√Not applicable
8.Dividend receivable
（1）Dividend receivable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|

（2）Significant dividend receivable aged over 1 year
9.Other receivable
1．Category of Other receivable
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||Proportion(|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n(%)||n(%)|||n(%)||%)||
|Other accounts|||||||||||
|receivable of|||||||||||
|||||||13,781|||||
|individual|13,781,||13,781,|||||13,781,4|||
|||48.66%||100.00%|0.00|,464.6|47.54%||100.00%|0.00|
|significance and|464.60||464.60|||||64.60|||
|||||||0|||||
|subject to individual|||||||||||
|impairment|||||||||||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|assessment|||||||||||
|Other accounts|||||||||||
|receivable subject to|||||||||||
|||||||14,596|||||
|impairment|13,927,||1,509,1||12,418,2|||1,670,39||12,925,98|
|||49.18%||10.84%||,383.5|50.35%||11.44%||
|assessment by credit|423.06||43.36||79.70|||9.08||4.45|
|||||||3|||||
|risk characteristics of|||||||||||
|a portfolio|||||||||||
|Other accounts|||||||||||
|receivable of|||||||||||
|individual|||||||||||
||611,820||611,820|||611,82||611,820.|||
|insignificance but||2.16%||100.00%|0.00||2.11%||100.00%|0.00|
||.77||.77|||0.77||77|||
|subject to individual|||||||||||
|impairment|||||||||||
|assessment|||||||||||
||||||12,418,279.70|28,989||||12,925,984.45|
||28,320,||15,902,|||||16,063,6|||
|Total||100.00%||||,668.9|100.00%||||
||708.43||428.73|||||84.45|||
|||||||0|||||

Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
||Amount in year-end||||
|Other receivable（Unit）|||||
||||Withdrawal proportion||
||Other account receivable|Bad debt provision||Reason for allowance|
||||(%)||
|Jiangxi Xuanli String||||No executable property,|
||11,389,044.60|11,389,044.60|100.00%||
|Co., Ltd.||||unlikely to recover.|
||1,800,000.00|1,800,000.00|100.00%|Estimated irrecoverable|
|Shenzhen Tianlong|||||
|||||Has been conceled,|
|Induatry& Trade Co.,|592,420.00|592,420.00|100.00%||
|||||unlikely to recover|
|Ltd.|||||
|Total|13,781,464.60|13,781,464.60|--|--|

 Other receivable accounts in Group on which bad debt provisions were provided on age analyze
basis：
√Applicable□Not applicable
In RMB
|||||
|-|-|-|-|
||Amount in year-end|||
|Aging||||
||Other receivable|Bad debt provision|Withdrawal proportion|

|||||
|-|-|-|-|
|Subitem within 1 year||||
|Subtotal Within 1 year|9,084,634.17|454,231.71|5.00%|
|1-2 years|3,032,560.75|303,256.08|10.00%|
|2—3 years|767,292.47|230,187.74|30.00%|
|Over 3 years|1,042,935.67|521,467.84|50.00%|
|3-4 years|710,122.83|355,061.42|50.00%|
|4-5 years|160,403.68|80,201.84|50.00%|
|Over 5 years|172,409.16|86,204.58|50.00%|
|Total|13,927,423.06|1,509,143.36||

Other receivable account in Group on which bad debt provisions were provided on percentage
basis：
□Applicable√Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the
portfolio：
□Applicable√Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB-161,255.72, the acount collected or switches back amounting to RMB0.00.
(3) Other account receivables category by nature of money
In RMB
||||
|-|-|-|
|Category|Year-end balance|Year-beginning balance|
|Customs bond|265,625.07|1,454,781.62|
|Export rebate|2,475,289.80|7,804,119.33|
|Unit account|14,914,848.23|15,211,367.96|
|Deposit|643,518.35|1,752,199.92|
|Reserve fund and staff loans|947,827.17|849,212.52|
|Other|9,073,599.81|1,917,987.55|
|Total|28,320,708.43|28,989,668.90|

 (4)Top 5 of the closing balance of the other accounts receivable colleted 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|40.21%|11,389,044.60|
|Second|Unit account|1,800,000.00|1-2 years|6.36%|1,800,000.00|
|Third|Export rebate|1,515,881.87|Within 1 year|5.35%|75,794.09|
|Fourth|Deposit|629,278.35|Within 1 year|2.22%|31,463.92|
|Fifth|Unit account|592,420.00|Over 5 years|2.09%|592,420.00|
|Total|--|15,926,624.82|--||13,888,722.61|

 10.Inventory
（1）Inventories types
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items|||||||
||Book balance|Provision for bad|Book value|Book balance|Provision for bad|Book value|
|||debts|||debts||
|Raw materials|87,061,113.61|12,679,234.15|74,381,879.46|134,843,713.96|12,679,234.15|122,164,479.81|
|Processing|||||||
||49,571,566.76||49,571,566.76|3,234,902.35||3,234,902.35|
|products|||||||
|Stock goods|240,737,319.36|35,398,716.90|205,338,602.46|189,554,586.67|39,338,792.67|150,215,794.00|
|Total|377,369,999.73|48,077,951.05|329,292,048.68|327,633,202.98|52,018,026.82|275,615,176.16|

 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
||||||||
|-|-|-|-|-|-|-|
|||Increased in current period||Decreased in current period|||
||Year-beginning||||||
|Items||||||Year-end balance|
||balance|Provision|Transferred back|Provision|Other||
|Raw materials|12,679,234.15|||||12,679,234.15|
|Stock goods|39,338,792.67|17,115,422.28||21,055,498.05||35,398,716.90|
|Total|52,018,026.82|17,115,422.28||21,055,498.05||48,077,951.05|

 11. Holding assets for sale
13.Other current assets
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Structural Deposit|180,000,000.00|210,000,000.00|
|Trust financing|800,000,000.00|800,000,000.00|
|Other financing product|0.00|10,000,000.00|
|After the deduction of input VAT|140,702,098.15|128,689,874.10|
|Total|1,120,702,098.15|1,148,689,874.10|

 14.Available-for-sale financial assets
(1)Available-for-sale financial assets
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items|||||||
|||Bad debt|||Bad debt||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Available-for-sale equity|||||||
||109,934,880.27|44,579,303.00|65,355,577.27|110,615,036.04|44,579,303.00|66,035,733.04|
|instruments|||||||
|Measured by fair value|7,314,138.86||7,314,138.86|7,994,294.63||7,994,294.63|
|Measured by cost|102,620,741.41|44,579,303.00|58,041,438.41|102,620,741.41|44,579,303.00|58,041,438.41|
|Total|109,934,880.27|44,579,303.00|65,355,577.27|110,615,036.04|44,579,303.00|66,035,733.04|

 (2)Available-for-sale financial assets measured by fair value at the period-end
In RMB
|||||
|-|-|-|-|
||Available-for-sale equity|Available-for-sale Debt||
|Type|||Total|
||instruments|instruments||
|Cost of the equityinstruments/amortizedcost of the liabilitiesinstruments||||
||8,940,598.31||8,940,598.31|
|Fair value|7,314,138.86||7,314,138.86|
|Changed amount of the|-1,626,459.45||-1,626,459.45|

||
|-|
|fair value accumulatively|
|included in other|
|comprehensive income|

(3) Available-for-sale financial assets measured by cost at the period-end
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Book balance||||Impairment provision||||Shareholdi|Cash|
||||||||||ng|bonus of|
|||||Period||Increas|Decreas||||
|Investee|Period-beg|Increase|Decrease||Period-beg|||Period -end|proportion|the|
||in|||-end|in|e|e||among the|reporting|
||||||||||investees|period|
|Shenzhen|||||||||||
|Jintian|||||||||||
||14,831,681|||14,831,681|14,831,681||||||
|Industry||||||||14,831,681.50|2.39%||
||.50|||.50|.50||||||
|（Group）|||||||||||
|Co., Ltd.|||||||||||
|Shenzhen|||||||||||
|Jiafeng|16,800,000|||16,800,000|16,800,000||||||
|||||||||16,800,000.00|10.80%||
|Textile|.00|||.00|.00||||||
|Co., ltd.|||||||||||
|Shenzhen|||||||||||
|Guanhua|||||||||||
||5,491,288.|||5,491,288.|5,058,307.||||||
|Prnting &||||||||5,058,307.01|45.00%||
||71|||71|01||||||
|dyeing|||||||||||
|Co., Ltd.|||||||||||
|Shenzhen|||||||||||
|Union|||||||||||
||2,600,000.|||2,600,000.|||||||
|Developm|||||||||2.87%||
||00|||00|||||||
|ent Group|||||||||||
|Co., Ltd|||||||||||
|Shenzhen|||||||||||
|Xiangjiang|||||||||||
||160,000.00|||160,000.00|||||20.00%||
|Trade Co.,|||||||||||
|Ltd.|||||||||||
|Shenzhen|||||||||||
|Xinfang|||||||||||
||524,000.00|||524,000.00|||||20.00%||
|Knitting|||||||||||
|Co., Ltd.|||||||||||
|Shenzhen|2,559,856.|||2,559,856.|||||30.00%||

|||||||
|-|-|-|-|-|-|
|Dailisi|26|26||||
|Knitting||||||
|Co., Ltd.||||||
|Anhui||||||
|Huapeng|25,410,209|25,410,209|7,622,659.|||
|||||7,622,659.50|50.00%|
|Textile|.50|.50|50|||
|Co., Ltd.||||||
|Shenzhen||||||
|South|1,500,000.|1,500,000.||||
||||||9.84%|
|Textile|00|00||||
|Co., Ltd.||||||
|Shenzhen||||||
|South|4,243,705.|4,243,705.||||
||||266,654.99|266,654.99|50.00%|
|Textile|44|44||||
|Co., Ltd.||||||
|Changxing||||||
|Junying||||||
||28,500,000|28,500,000||||
|Investment|||||57.00%|
||.00|.00||||
|Partnershi||||||
|p||||||
||102,620,74|102,620,74|44,579,303|||
|Total||||44,579,303.00|--|
||1.41|1.41|.00|||

(4)Changes of the impairment of the available-for-sale financial assets during the reporting period In RMB
|||||
|-|-|-|-|
||Available for sale equity|Available for sale debtsinstruments||
|Category|||Total|
||instruments|||
|Impairment amount at||||
||44,579,303.00||44,579,303.00|
|the beginning period||||
|Impairment amount at||||
||44,579,303.00||44,579,303.00|
|the end of period||||

15. Held-to-maturity investment
16. Long-term account receivables
17. Long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Opening|Increase/decrease||||||||Closing|Closing|
|Investees||||||||||||
||balance|Addition|Deductio|Gains/los|Other|Other|Declarati|Withdraw|Other|balance|balance|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||investmen|n|s under|comprehe|changes|on of cash|n||of|
|||t|investmen|equity|nsive|in equity|dividends|impairme||impairme|
||||t|method|income||or profit|nt||nt|
||||||adjustmen|||provision||provision|
||||||ts||||||
|I. Joint ventures|||||||||||
|Shenzhen|||||||||||
|Haohao|||||||||||
||5,369,450|||393,860.7|||400,000.0||5,363,311||
|Property|||||||||||
||.56|||7|||0||.33||
|Leasing|||||||||||
|Co., Ltd.|||||||||||
||5,369,450|||393,860.7|||400,000.0||5,363,311||
|Subtotal|||||||||||
||.56|||7|||0||.33||
|2. Affiliated Company|||||||||||
|Shenzhen|||||||||||
|Changlian|||||||||||
|fa|2,107,155||||||||2,203,243||
|||||96,088.63|||||||
|Printing|.01||||||||.64||
|& dyeing|||||||||||
|Company|||||||||||
|Jordan|||||||||||
||2,233,902|||-68,777.0|||||2,192,865||
|Garment|||||27,739.85||||||
||.64|||0|||||.49||
|Factory|||||||||||
|Hongkon|||||||||||
|g Yehui|||||||||||
||10,670,22|||195,773.2|||198,456.0||10,760,15||
|Internatio|||||92,609.30||||||
||6.35|||7|||0||2.92||
|nal Co.,|||||||||||
|Ltd.|||||||||||
||15,011,28|||223,084.9|120,349.1||198,456.0||15,156,26||
|Subtotal|||||||||||
||4.00|||0|5||0||2.05||
||20,380,73|||616,945.6|120,349.1||598,456.0||20,519,57||
|Total|||||||||||
||4.56|||7|5||0||3.38||

 18.Investment real estate
（1）Measured by the cost of investment in real estate
√ Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
|Items|House, Building|Land use right|Construction in process|Total|

||||
|-|-|-|
|I. Original price|||
|1. Balance at|||
||306,466,721.91|306,466,721.91|
|period-beginning|||
|2.Increase in the|||
||2,499,538.83|2,499,538.83|
|current period|||
|(1) Purchase|||
|（2）Inventory\Fixed|||
|assets\ Transferred from|||
|construction in progress|||
|(3)Increased of|||
|Enterprise Combination|||
|3.Decreased amount of|||
|the period|||
|（1）Dispose|||
|（2）Other out|||
|4. Balance at period-end|308,966,260.74|308,966,260.74|
|II.Accumulated|||
|amortization|||
|1.Opening balance|133,360,915.64|133,360,915.64|
|2.Increased amount ofthe|||
||3,890,452.29|3,890,452.29|
|period|||
|(1) Withdrawal|3,890,452.29|3,890,452.29|
|3.Decreased amount of|||
|the period|||
|（1）Dispose|||
|（2）Other out|||
|4. Balance at|||
||137,251,367.93|137,251,367.93|
|period-end|||
|III. Impairment provision|||
|1. Balance at|||
|period-beginning|||
|2.Increased amount of|||

||||
|-|-|-|
|the period|||
|(1) Withdrawal|0.00||
|3.Decreased amount of|||
|the period|||
|（1）Dispose|||
|（2）Other out|||
|4. Balance at period-end|||
|IV.Book value|||
|1.Book value at period||171,714,892.81|
||171,714,892.81||
|-end|||
|2.Book value at||173,105,806.27|
||173,105,806.27||
|period-beginning|||

(2) Details of fixed assets failed to accomplish certification of property
□ Applicable√ Not appliucable
(3) Investment real estate without certificate of ownership
||||
|-|-|-|
|Items|Values|Reansons|
|||Settlement audit has not yet been|
|The Guanhua Building|49,231,570.92||
|||completed.|

19. Fixed assets
(1) List of fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
|||Machinery||||
|Items|Houses & buildings||Transportations|Other|Total|
|||eqiupment||||
|I. Original price||||||
|1.Opening balance|492,709,415.27|659,301,895.53|3,691,157.72|22,260,594.58|1,177,963,063.10|
|2.Increased amount||||||
||53,519,097.66|335,851,249.20|6,163,861.61|5,691,897.65|401,226,106.12|
|ofthe period||||||
|(1) Purchase||32,418,176.86|6,163,861.61|5,691,897.65|44,273,936.12|
|(2) Transferred fro||||||
||53,519,097.66|303,433,072.34|||356,952,170.00|
|m construction in pr||||||

|||||||
|-|-|-|-|-|-|
|ogress||||||
|(3)Increased of||||||
|Enterprise||||||
|Combination||||||
|3.Decreased amount||||||
|||30,538.18||61,069.08|91,607.26|
|of the period||||||
|（1）Disposal||30,538.18||61,069.08|91,607.26|
|4. Balance at||||||
||546,228,512.93|995,122,606.55|9,855,019.33|27,891,423.15|1,579,097,561.96|
|period-end||||||
|II. Accumulated||||||
|depreciation||||||
|1.Opening balance|113,563,999.41|389,901,922.93|3,268,450.66|15,095,489.91|521,829,862.91|
|2.Increased amount||||||
||7,007,923.62|28,096,254.46|102,362.04|806,264.61|36,012,804.73|
|of the period||||||
|(1) Withdrawal|7,007,923.62|28,096,254.46|102,362.04|806,264.61|36,012,804.73|
|3.Decrease in the||||||
|||16,879.34||29,389.84|46,269.18|
|reporting period||||||
|（1）Disposal||16,879.34||29,389.84|46,269.18|
|4.Closing balance|120,571,923.03|417,981,298.05|3,370,812.70|15,872,364.68|557,796,398.46|
|III. Impairment||||||
|provision||||||
|1.Opening balance||||||
|2.Increase in the||||||
|reporting period||||||
|（1）Withdrawal||||||
|3.Decrease in||||||
|the reporting period||||||
|（1）Disposal||||||
|4. Closing balance||||||
|IV. Book value||||||

|||||||
|-|-|-|-|-|-|
|1.Book value of the||||||
||425,656,589.90|577,141,308.50|6,484,206.63|12,019,058.47|1,021,301,163.50|
|period-end||||||
|2.Book value of the||||||
||379,145,415.86|269,399,972.60|422,707.06|7,165,104.67|656,133,200.19|
|period-begin||||||

20. Project under construction
(1)Project under construction
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items|Book balance|Provision for|Book value|Book balance|Provision for|Book value|
|||devaluation|||devaluation||
|TFT-LCD|||||||
|polarizing film IIproject|0.00||0.00|315,430,810.41||315,430,810.41|
|2500mm widthproduction line|||||||
||1,280,703.35||1,280,703.35|500,168.25||500,168.25|
|Engineeringtransformation|||||||
||10,673,306.16||10,673,306.16|4,629,218.20||4,629,218.20|
|Other|2,748,768.71||2,748,768.71|2,009,976.87||2,009,976.87|
|Total|14,702,778.22||14,702,778.22|322,570,173.73||322,570,173.73|

（2）Changes of significant construction in progress
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Amountat yearbeginning||||||||Including：|||
||||||||||Capitalis||||
|||||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 r|atio（%)||
||||||||||balance|ation ofinterest|||
|TFT-LC|||||||||||||
|D|||||||||||||
||700,340|, 315,430,|39,520,2|354,951,|||||||||
|polarizin|||||0.00|0.00|50.68%|||||Other|
||000.00|810.41|02.14|012.55|||||||||
|g film II|||||||||||||
|project|||||||||||||
|Total|700,340|, 315,430,|39,520,2|354,951,|||--|--||||--|

|||||
|-|-|-|-|
|000.0|0 810.41|02.14|012.55|

21. Engineering Material
22.Liquidation of fixed assets
23. Productive biological assets
24. Oil-and-gas assets
25. Intangible assets
（1）Information
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Non-proprietary|Proprietary|||
|Items|Land use right|Patent right|||Software|Total|
||||technology|technology|||
|I. Original price|||||||
|1. Balance at|||||||
||48,822,064.61|||11,825,200.00|2,591,780.00|63,239,044.61|
|period-beginning|||||||
|2.Increase in the|||||||
|current period|||||||
|(1) Purchase|||||||
|（2）Internal R &|||||||
|D|||||||
|（3）Increased of|||||||
|Enterprise|||||||
|Combination|||||||
|3.Decreased|||||||
|amount of the|||||28,022.72|28,022.72|
|period|||||||
|（1）Disposal|||||28,022.72|28,022.72|
|4. Balance at|||||||
||48,822,064.61|||11,825,200.00|2,563,757.28|63,211,021.89|
|period-end|||||||
|II.Accumulated|||||||
|amortization|||||||
|1. Balance at|||||||
||11,283,873.79|||11,825,200.00|1,259,297.42|24,368,371.21|
|period-beginning|||||||
|2. Increase in the|508,071.86||||112,090.88|620,162.74|

||||||
|-|-|-|-|-|
|current period|||||
|(1) Withdrawal|508,071.86||112,090.88|620,162.74|
|3.Decreased|||||
|amount of the|||||
|period|||||
|（1）Disposal|||||
|4. Balance at|||||
||11,791,945.65|11,825,200.00|1,371,388.30|24,988,533.95|
|period-end|||||
|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|||||
||37,030,118.96||1,192,368.98|38,222,487.94|
|period -end|||||
|2.Book value at|||||
||37,538,190.82||1,332,482.58|38,870,673.40|
|period-beginning|||||

26. Research and development expenditure
27.Goodwill
(1) Original book value of goodwill
In RMB
||||||
|-|-|-|-|-|
|Name of the|||||
||Opening balance|Increase|Decrease|Closing balance|
|investees or the|||||

||||
|-|-|-|
|events formed|||
|goodwill|||
|Shenzhen Beauty|||
|Century Garment|||
||2,167,341.21|2,167,341.21|
|Co., Ltd.|||
|Shenzhen|||
|Shenfang Impor|||
||t82,246.61|82,246.61|
|and Export Co|||
||.,||
|Ltd.|||
|Shenzhen Shengb|o||
|Optoelectronic|||
||9,614,758.55|9,614,758.55|
|Technology Co|||
||.,||
|Ltd|||
|Total|11,864,346.37|11,864,346.37|

（2）Impairment of goodwill
In RMB
||||||
|-|-|-|-|-|
||Balance in|||Balance in|
|Investee||Increased at this period|.Decreased at this period||
||year-begin|||year-end|
|Shenzhen Beauty|||||
|Century Garment|||||
||2,167,341.21|||2,167,341.21|
|Co., Ltd.|||||
|Shenzhen|||||
|Shenfang Import|||||
||82,246.61|||82,246.61|
|and Export Co.,|||||
|Ltd.|||||
|Shenzhen Shengb|||||
||o9,614,758.55|||9,614,758.55|
|Optoelectronic|||||

||||
|-|-|-|
|Technology Co|.,||
|Ltd|||
|Total|11,864,346.37|11,864,346.37|

 28. Long term amortize expenses
In RMB
|||||||
|-|-|-|-|-|-|
||Balance in|Increase in this|Amortized expenses|||
|Items||||Other loss|Balance in year-end|
||year-begin|period||||
|Renovation fee|841,713.23|294,770.06|73,649.05|0.00|1,062,834.24|
|Other|193,576.85|7,800.00|81,487.77|0.00|119,889.08|
|Total|1,035,290.08|302,570.06|155,136.82|0.00|1,182,723.32|

 29. 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|||||
||5,263,784.32|1,315,946.08|5,190,838.04|1,297,709.51|
|reserves|||||
|Unattained internal sales|||||
||2,636,093.43|395,414.03|2,680,650.70|402,097.62|
|profits|||||
|Changes in fair value of|||||
|available for sale|1,626,459.45|406,614.86|946,303.68|236,575.93|
|financial assets|||||
|Temporary differences in|||||
|the formation of equity|2,029,115.04|507,278.76|152,615.37|38,153.84|
|incentives|||||
|Other|||||
|Total|11,555,452.24|2,625,253.73|8,970,407.79|1,974,536.90|

(2) 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||2,625,253.73||1,974,536.90|
|assets|||||

(3)Details of income tax assets not recognized
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Deductible temporary difference|84,544,641.61|80,615,487.41|
|Deductible loss|356,787,195.90|486,014,140.23|
|Total|441,331,837.51|566,629,627.64|

 (4)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|
|2018||129,226,944.33||
|2019|148,095,898.11|148,095,898.11||
|2020|83,990,395.00|83,990,395.00||
|2021|124,700,902.79|124,700,902.79||
|Total|356,787,195.90|486,014,140.23|--|

 30 .Other non-current assets
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Advance payment for equipment fund||2,772,114.56|
|Dvance payment for technical services|42,346,134.84|44,394,879.92|
|Total|42,346,134.84|47,166,994.48|

 31. Short-term loan
（1）Categories of short-term loans
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-Beginning|
|Credit loans|197,389,295.07|88,638,181.45|
|Total|197,389,295.07|88,638,181.45|

 32. Financial liabilities measured at fair value through current profit and loss
33. Derivative financial liabilities
□Applicable√ Not applicable
34. Note payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Bank acceptance bills|19,500,000.00||
|Total|19,500,000.00||

35. Account payable
（1）Account payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Within 1 year|61,389,841.01|96,043,721.23|
|1-2 years|27,566.50|37,402.40|
|2-3 years|27,402.40|37,083.00|
|3-4 years|17,083.00|300,642.80|
|4-5 years|300,642.80|37,090.00|
|Over 5 years|445,253.53|648,757.75|
|Total|62,207,789.24|97,104,697.18|

（2）Significant accounts payable that aged over one year
In RMB
||||
|-|-|-|
|||The reason for not repaid or carried forwar|
|Tems|Balance in year-end||
|||d|

36.Advance account
（1）Advance account
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Within 1 year|37,597,370.18|33,708,344.84|
|1-2 years||240,275.96|
|2-3 years||364,922.45|
|3-4 years|||
|Over 5 years|639,024.58|639,024.58|
|Total|38,236,394.76|34,952,567.83|

 37.Payable Employee wage
（1）Payable Employee wage
In RMB
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase in this period|Payable in this period|Balance in year-end|
|I. Short –term wages|29,503,260.65|67,445,438.28|78,606,725.73|18,341,973.20|
|II. Welfare afterlwaving|||||
|of position-fixed||5,643,995.77|5,643,995.77||
|provision scheme|||||
|Total|29,503,260.65|73,089,434.05|84,250,721.50|18,341,973.20|

（2）Short-term remuneration
In RMB
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase in this period|Payable in this period|Balance in year-end|
|1.Wages, bonuses,|||||
||27,846,341.48|58,837,127.93|70,012,519.68|16,670,949.73|
|allowances and subsidies|||||
|2.Employee welfare||3,835,600.53|3,835,600.53||
|3. Social insurance|||||
|||1,062,233.15|1,062,233.15||
|premiums|||||
|Including：Medical|||||
|||834,782.99|834,782.99||
|insurance|||||
|Work injury insurance||114,298.25|114,298.25||
|Maternity insurance||113,151.91|113,151.91||
|4. Public reserves for|||||
|||2,489,156.08|2,489,156.08||
|housing|||||
|5.Union funds and staff|||||
||1,656,919.17|1,221,320.59|1,207,216.29|1,671,023.47|
|education fee|||||
|Total|29,503,260.65|67,445,438.28|78,606,725.73|18,341,973.20|

（3）Defined contribution plans listed
In RMB
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase in this period|Payable in this period|Balance in year-end|
|1. Basic old-age|||||
|||4,686,509.82|4,686,509.82||
|insurance premiums|||||
|2.Unemployment|||||
|||135,191.10|135,191.10||
|insurance|||||
|3. Annuity payment||822,294.85|822,294.85||
|Total||5,643,995.77|5,643,995.77||

38.Tax Payable
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|VAT|447,369.40|548,014.78|
|Expenditure taxes|0.00||
|Enterprise Income tax|3,849,800.68|3,912,084.91|
|Individual Income tax|1,059,630.01|704,212.04|
|City Construction tax|36,389.98|34,389.37|
|House property tax|2,948,571.06|1,541,424.38|
|Educational surtax|24,878.61|22,055.75|
|Other|305,233.36|173,081.34|
|Total|8,671,873.10|6,935,262.57|

 39. Interest payable
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Interest on long-term borrowings payable|46,643,162.06|44,446,217.66|
|Interest on short-term borrowings|447,233.47|195,135.86|
|Total|47,090,395.53|45,799,544.04|

40. Dividends payable
41.Other payable
（1）Disclosure by nature
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Engineering Equipment fund|77,786,803.19|34,977,749.54|
|Unit account|48,697,613.74|48,697,613.74|
|Deposit|25,018,600.58|25,090,664.49|
|Restrictive stock repurchase obligation|27,230,679.00|27,230,679.00|
|Other|23,901,272.84|19,030,092.77|
|Total|202,634,969.35|155,026,799.54|

 42. Divided into liability held for sale
43.Non-current liabilitiesdue within 1 year
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Long-term loans due within 1 year||40,000,000.00|
|Total||40,000,000.00|

 44.Other current liabilities
45.Long-term borrowings
（1）Long-term term borrowings
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Credit borrowings|40,000,000.00|40,000,000.00|
|Total|40,000,000.00|40,000,000.00|

46.Bond payable
47. Long-term payable
48. Long-term employee salary payable
49. Specific payable
50. Estimates liabilities
51.Deferred income
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Beginning of term|Increased this term|Decreased this term|End of term|Reason|
|Govemment Subsidy|134,767,064.72|5,396,000.00|5,812,167.76|134,350,896.96||
|Total|134,767,064.72|5,396,000.00|5,812,167.76|134,350,896.96|--|

 Details of governmentsubsidies：
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||New|Amount|Other income|Amount of||||
|||||||||Asset-related|
||Beginning of|subsidy|transferred to|recorded in|cost deducted|Other|||
|Items|||||||End of term|orincome-rel|
||term|in current|non-operatio|the current|in the current|changes|||
|||||||||ated|
|||period|nal income|period|period||||
|Textile||||||||Related to|
||714,285.73|||71,428.58|||642,857.15||
|special funds||||||||assets|
|High-tech|||||||||
|Industrializati|||||||||
|||||||||Related to|
|on|400,000.00|||100,000.00|||300,000.00||
|||||||||assets|
|demonstratio|||||||||
|n projects|||||||||
|National|||||||||
|grant|||||||||
|fundsfor new||||||||Related to|
||2,000,000.00|||500,000.00|||1,500,000.00||
|flat panel||||||||assets|
|display|||||||||
|industry|||||||||
|Grant funds|||||||||
|for TFT-LCD|||||||||
|||||||||Related to|
|polarizer|5,633,333.34|||649,999.97|||4,983,333.37||
|||||||||assets|
|industry|||||||||
|project|||||||||
|Grant funds||||||||Related to|
||2,500,000.00|||250,000.02|||2,249,999.98||
|for TFT-LCD||||||||assets|

||||||
|-|-|-|-|-|
|polarizer|||||
|narrow line|||||
|(line 5)|||||
|project|||||
|Purchase of|||||
|imported|||||
|||||Related to|
|equipment|852,106.98|87,545.09|764,561.89||
|||||assets|
|and|||||
|technology|||||
|Innovation|||||
|and venture|||||
|capital for||||Related to|
||250,000.00|25,000.04|224,999.96||
|TFT-LCD||||assets|
|polarier I|||||
|project|||||
|Shenzhen|||||
|polarizing|||||
|materials and|||||
|Technology|||||
|||||Related to|
|Engineering|362,500.00|25,000.02|337,499.98||
|||||assets|
|Laboratory|||||
|innovation|||||
|venture|||||
|capital|||||
|Shenzzhen|||||
|Engineering|||||
|laboratory|||||
|||||Related to|
|polarizing|3,625,000.00|250,000.02|3,374,999.98||
|||||assets|
|material and|||||
|technical|||||
|engineeting|||||
|Capital|||||
|funding for||||Related to|
||2,175,000.00|150,000.00|2,025,000.00||
|Technology||||assets|
|Center|||||
|Subsidy fund|||||
|s to support t|||||
|||||Related to|
|he introductio|71,940.51|7,194.00|64,746.51||
|||||assets|
|n of advance|||||
|d technology|||||
|Grant funds|||||
|for TFT-LCD|||15,000,000.0|Related to|
||15,000,000.00||||
|polarizer|||0|assets|
|narrow line|||||

||||||
|-|-|-|-|-|
|(line 6)|||||
|project|||||
|Grant funds|||||
|for TFT-LCD|||||
|polarizer|||10,000,000.0|Related to|
||10,000,000.00||||
|narrow line|||0|assets|
|(line 6)|||||
|project|||||
|Grant funds|||||
|for TFT-LCD|||||
|polarizer||||Related to|
||500,000.00||500,000.00||
|narrow line||||assets|
|(line 6)|||||
|project|||||
|key technolo|||||
|gy|||||
|research and|||||
|development|||||
|||||Related to|
|projects of|4,625,000.00|250,000.02|4,374,999.98||
|||||assets|
|optical|||||
|compensation|||||
|film for|||||
|polarizer|||||
|Strategic|||||
|industries|||||
|Development|||25,000,000.0|Related to|
||25,000,000.00||||
|fund of|||0|assets|
|Guangdong|||||
|Province|||||
|Grants of|||||
|Purchase|||||
|equipment of|||||
||||30,000,000.0|Related to|
|TFT-LCD|30,000,000.00||||
||||0|assets|
|polarizing|||||
|film phase II|||||
|project|||||
|Energy|||||
|saving||||Related to|
||116,101.49||116,101.49||
|transformatio||||assets|
|n grant funds|||||
|Polarization|||||
|Industrializati|||30,000,000.0|Related to|
||30,000,000.00||||
|on Project for|||0|assets|
|Super|||||

|||||||
|-|-|-|-|-|-|
|Large-sized||||||
|TVs (Line 7)||||||
|Central||||||
|Budget||||||
|Investment||||||
|Old Elevator||||||
||||||Related to|
|Renovation|941,796.67||50,000.00|891,796.67||
||||||assets|
|Fund Subsidy||||||
|Shenzhen||||||
|standard||||||
|||960,000.0|||Related to|
|special|||960,000.00|||
|||0|||income|
|fund||||||
|subsidy||||||
|Research on||||||
|Key||||||
|Technology||||||
|of||||||
|Polarizer||2,000,000|||Related to|
||0.00|||2,000,000.00||
|for||.00|||assets|
|Ultra-thin||||||
|IPS||||||
|Smartphone||||||
|Terminal||||||
|Government||||||
|subsidies||2,436,000|||Related to|
||||2,436,000.00|||
|related to||.00|||income|
|income||||||
||134,767,064.72|5,396,000||134,350,896.96||
|Total|||5,812,167.76||--|
|||.00||||

 (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 22, 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 RMB642,857.15 .
(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 RMB300,000.00.
(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 Office High-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 RMB1,500,000.00.
(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 RMB4,983,333.37.
(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 RMB2,249,999.98.
(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 RMB764,561.89.
(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 isRMB224,999.96元.
(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 RMB337,499.98.
(10) 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 RMB3,374,999.98.
(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 Shenzhen SAPO Photoelectric Co., Ltd. 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 RMB2,025,000.00.
(11)On March 2014 the company received the introduction of advanced technology import subsid
y funds 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 RMB64,746.51.
(12) According to the "Shenzhen Municipal Development and Reform Commission Reply for Shenzhen Shengbo Optoelectronic Technology Co., Ltd. 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.The fund gap will be filled by the Company through raising funds by itself. The subsidy will be amortized over the depreciation period from the day when relevant assets get ready for intended use.
(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.The fund gap will be filled by the Company through raising funds by itself. The subsidy will be amortized over the depreciation period from the day when relevant assets get ready for intended use.
(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.The fund gap will be filled by the Company through raising funds by itself. The subsidy will be amortized over the depreciation period from the day when relevant assets get ready for intended use;
(15)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 RMB4,374,999.98.
(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,The company will defer income share transferred in the current profit and loss on the basis of depreciation life as of the date of the predetermined workability state the related assets
(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.The company will defer income share transferred in the current profit and loss on the basis of depreciation life as of the date of the predetermined workability state the related assets reach.
(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 116,101.49.
19. 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.
20. In 2017, the company received 1,218,640.00 yuan for the old elevator upgrade subsidy, which was apportioned according to the depreciation period of the relevant assets. The current period was included in other income of 50,000.00 yuan, and the unassessed balance at the end of the period was 891,796.67 yuan.
21. According to the regulations of Management Measures of Shenzhen City to Build Shenzhen Standard Special Funds (SCG[2016] No. 7) and Operating Procedures of Shenzhen City to Create Shenzhen Standard Special Funding (SSZG[2017] No. 2), the national standard “Determination Method for the Adhesion of Polarizer Optical Film Coating” developed by the company was awarded 600,000 yuan by the Shenzhen Municipal Market and Quality Supervision and Administration Committee; the national standard “Determination of Optical Compensation Value of Polarizer” developed by the company was funded 360,000 yuan by Shenzhen Municipal Committee of Market and Quality Supervision and Administration, and the money arrived on January 26, 2018.
22. 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 the company 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.
23. According to the notice on Certain Measures for Promoting Scientific and Technological Innovation (SF[2016] No. 7), the company received a corporateR&D grant of RMB 2,436,000 from the Shenzhen Science and Technology Innovation Committee on January 25, 2018.
52.Other Non-current liabilities
53.Stock capital
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Changed（+，-）||||||
||Balance in|||Capitalization|||Balance in|
|||Issuance of||||||
||year-begin||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
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|17,040,487.63|3,451,194.00||20,491,681.63|
|Total|1,866,001,475.17|3,451,194.00||1,869,452,669.17|

 Other exlanation, including changes and reasons forchanges：
Confirm the current restricted stock incentive fee of RMB 3,451,194.00.
56.Treasury stock
In RMB
||||||
|-|-|-|-|-|
||||Decrease in the current||
|Items|Year-beginning balance|Increase in the current||Year-end balance|
||||period||
|Treasury stock|27,230,679.00|||27,230,679.00|
|Total|27,230,679.00|||27,230,679.00|

Notes：
57. Other comprehensive income
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Amount of current period||||||
||Year-beginni|Amount forthe period|Less：||After - ta|After - t|Year-end|
|Items||||Less：||||
||ng balance||||||balance|
||||Previously rec||x attribut|ax attrib||
|||||Income tax||||
|||before inco|ognized in pro||able to th|utable to||

|||||||||
|-|-|-|-|-|-|-|-|
|||me tax|fit or loss in ot||e parent|minorit||
||||her comprehen||company|y shareh||
||||sive income|||olders||
|2.Other comprehensive income|||||-389,767.67|||
||2,218,703.8|-559,806.||-170,038.||||
|reclassifiable to profit or loss in|||||||1,828,936.20|
||7|62||95||||
|subsequent periods||||||||
|Gains and losses from changes in fair|||||-510,116.82|||
||1,500,778.5|-680,155.||-170,038.||||
|value of financial assets available for|||||||990,661.68|
||0|77||95||||
|sale||||||||
|Translation differences of||120,349.15|||120,349.15|||
|financial statements|717,925.37||||||838,274.52|
|denominated||||||||
|Total of other comprehensive income|2,218,703.87|-559,806.62||-170,038.|-389,767.67||1,828,936.20|
|||||95||||

58. Special reserves
59. Surplus reserve
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginning balance|Increase in the current|Decrease in the current|Year-end balance|
|||period|period||
|Statutory surplus reserve|77,477,042.19|||77,477,042.19|
|Total|77,477,042.19|||77,477,042.19|

 60. Retained profits
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Retained earnings before adjustments at the yearbeginning|||
||-32,266,087.44|-81,275,828.76|
|Retained earnings after adjustments at the yearend|-32,266,087.44||
|||-81,275,828.76|
|Add: Net profit attributable to owners of theCompany for the period|||
||9,646,976.15|14,457,841.63|
|Retained profits at the period end|-22,619,111.29|-66,817,987.13|

 As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new
regulations, the affected beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB
0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits
are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning
undistributed profits are RMB 0.00
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
61. Business income, Business cost
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Items|||||
||Income|Cost|Income|Cost|
|Main business|469,020,785.79|413,056,967.08|563,241,779.76|507,497,595.29|
|Other business|69,267,264.82|66,061,633.29|176,095,977.11|170,119,600.50|
|Total|538,288,050.61|479,118,600.37|739,337,756.87|677,617,195.79|

 62. Business tax and subjoin
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Urban construction tax|293,239.29|1,877,415.61|
|Education surcharge|210,850.54|1,341,011.11|
|Property tax|2,891,819.92|2,827,811.60|
|Land use tax|176,423.79|172,077.94|
|vehicle and vessel usage tax|3,960.00|4,800.00|
|Stamp tax|260,786.33|335,365.36|
|Other|3,476.25|30,536.23|
|Total|3,840,556.12|6,589,017.85|

 63.Sales expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage|1,477,791.73|1,442,735.16|
|Exhibition fee|124,705.56|128,319.69|
|Business expenses|214,533.49|344,967.24|
|Transportation changes|1,402,849.04|1,507,900.57|
|Samples and product loss|179,001.34|170,061.25|

||||
|-|-|-|
|Other|381,530.37|413,059.23|
|Total|3,780,411.53|4,007,043.14|

 64. Administrative expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage|23,790,598.33|18,043,421.42|
||123,836.06|144,107.56|
|Property insurance|||
||1,804,835.86|351,038.26|
|Repair charge|||
|Business entertainment|485,191.77|394,601.48|
||512,976.10|400,427.52|
|Travel expenses|||
||515,020.20|351,040.92|
|Office expenses|||
|Water and electricity|2,017,209.50|1,310,312.83|
|Agency expenses|1,639,670.22|1,163,200.26|
||21,189,099.82|10,940,877.48|
|R& D|||
||54,119.00|29,223.00|
|Board fees|||
|Other|4,848,892.78|3,718,815.43|
||4,788,853.45|3,360,019.17|
|Depreciation of fixed assets|||
|Amortization of intangible assets|648,185.46|630,995.46|
||9,731.00|8,487.70|
|Low consumables amortization|||
|Total|62,428,219.55|40,846,568.49|

 65. Financial expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
||3,428,083.94|2,240,228.08|
|Interest expenses|||
||-13,277,267.58|-17,274,220.29|
|Interest income|||
|Exchange loss|4,824,219.83|1,753,688.28|
||1,172,376.15|1,242,947.35|
|Fees and other|||
||-3,852,587.66|-12,037,356.58|
|Total|||

 66.Loss of assets impairment
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|I .Losses for bad debts|278,909.76|522,788.58|
|II. Losses for falling price of inventory|17,115,422.28|30,137,044.41|
|Total|17,394,332.04|30,659,832.99|

 67. Gains from changes in fair value
68. Investment income
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Investment income from the disposal of|||
||616,945.67|1,620,115.63|
|long-term equity investment|||
|Hold the investment income during from|||
||574,774.15|526,586.44|
|available-for-sale financial assets|||
|Other|27,360,990.33|20,808,333.32|
|Total|28,552,710.15|22,955,035.39|

 69. Assets disposal income
70.Other income
In RMB
||||
|-|-|-|
|Source|Amount of current period|Amount of previous period|
|Government Subsidy|5,812,167.76|5,143,961.90|

 71. 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|517,000.00|55,009.21|
|Gains from disposal of||||
||24,597.81|1,510.00|24,597.81|
|non-current assets||||
|Other|10,301.15|9,910.24|10,301.15|
|Total|89,905.17|528,419.77|89,905.17|

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|||||||||
|City|||||||||
|Market and|||Because||||||
|Supervision|||research and||||||
|and|||development,||||||
|Management|||technical|||||Relate to|
|||Subsidy||Yes|No||17,000.00||
|Commissiona|||updates and|||||income|
|llocated|||transformatio||||||
|intellectual|||n||||||
|property|||of subsidies||||||
|patent|||||||||
|grant|||||||||
|Shenzhen|||||||||
|Science and|||||||||
|Technology|||Because||||||
|Innovation|||research and||||||
|Committee|||development,||||||
|allocated|||technical|||||Relate to|
|||Subsidy||Yes|No||500,000.00||
|2016|||updates and|||||income|
|annual|||transformatio||||||
|science|||n||||||
|and|||of subsidies||||||
|technology|||||||||
|award|||||||||
|Shenzhen|||||||||
|Social||||||||Relate to|
|||Subsidy||Yes|No|55,009.21|||
|Security||||||||income|
|Bureau|||||||||
|Total|--|--|--|--|--|55,009.21|517,000.00|--|

 72.Non-current expenses
In RMB
|||||
|-|-|-|-|
|Items|Amount of current period|Amount of previous period|The amount of non-operating|

|||||
|-|-|-|-|
||||gains & lossed|
|Non-current asset Disposition||||
||43,338.08|3,281.59|4,338.08|
|loss||||
|Other|110,000.00|196.77|110,000.00|
|Total|153,338.08|3,478.36|153,338.08|

 73.Income tax expenses
(1)Income tax expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Current income tax expense|5,972,581.36|7,902,446.59|
|Deferred income tax expense|-650,716.83|-159,488.32|
|Total|5,321,864.53|7,742,958.27|

 (2)Reconciliation of account profit and income taxexpenses：
In RMB
|||
|-|-|
|Items|Amount of current period|
|Total profits|9,879,963.66|
|Income tax computed in accordance with the applicable tax rate|2,469,990.92|
|Effect of different tax rate applicable to the subsidiary Company|1,302,252.17|
|Influence of income tax before adjustment|10,551.90|
|Influence of non taxable income|-210,923.73|
|Affect the use of deferred tax assets early unconfirmed||
||150,670.21|
|deductible losses||
|The current period does not affect the deferred tax assets||
||1,599,323.06|
|recognized deductible temporary differences or deductible loss||
|Other||
|Income tax expense|5,321,864.53|

 74 .Other comprehensive income
Seen in Note 57.
75.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
||5,396,000.00|3,409,000.00|
|Government Subsidy|||
||20,764,799.70|32,239,684.61|
|Bank deposit interest income and other|||
|Total|26,160,799.70|35,648,684.61|

 (2)Other cash paid related to oprating activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|R&D|15,280,060.45|10,940,877.48|
|Office Expense|515,020.20|351,040.92|
|Business fee|699,725.26|739,568.72|
|Travel expenses|632,243.41|400,427.52|
|Transportation fee|1,402,849.04|1,507,900.57|
|Agency Charge|1,639,670.22|1,163,200.26|
|Insurance expenses|123,836.06|144,107.56|
|Water and electricity|2,017,209.50|1,310,312.83|
|Rental fee|1,804,835.86|351,038.26|
|Exhibition expenses|124,705.56|128,319.69|
|Other|1,340,140.71|75,148,367.33|
|Total|25,580,296.27|92,185,161.14|

 (3)Cash received related to other investment activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Structured deposits, financial products,|||
||1,903,828,974.66|2,205,083,032.64|
|principal and income|||
|Total|1,903,828,974.66|2,205,083,032.64|

 (4).Cash paid related to other investment activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Structure deposit investment|1,830,500,000.00|1,883,000,000.00|
|Total|1,830,500,000.00|1,883,000,000.00|

（5）Other cash received in relation to financing activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Obtain loans from affiliated parties||6,809,000.00|
|Total||6,809,000.00|

 76. 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|4,558,099.13|12,536,435.62|
|Add: Impairment loss provision of assets|-3,940,075.77|-164,403.72|
|Depreciation of fixed assets, oil and gas|||
||40,523,419.76|40,264,166.05|
|assets and consumable biological assets|||
|Amortization of intangible assets|620,162.74|630,995.46|
|Amortization of Long-term deferred|||
||155,136.82|148,559.98|
|expenses|||
|Loss on scrap of fixed assets|43,338.08|3,281.59|
|Financial cost|-3,852,587.66|-13,992,394.49|
|Loss on investment|-28,152,710.15|-22,955,035.39|
|Decrease in deferred income tax assets|-650,716.83|159,488.32|
|Decrease of inventories|-45,300,979.12|-13,178,629.92|
|Decease of operating receivables|-78,431,655.56|-56,290,615.85|
|Increased of operating Payable|-14,422,320.88|-45,338,248.59|
|Net cash flows arising from operating|-128,850,889.44|-98,176,400.94|
|activities|||
|II. Significant investment and financing|--|--|

||||
|-|-|-|
|activities that without cash flows:|||
|3．Movement of cash and cash equivalents：|--|--|
|Ending balance of cash|1,014,735,793.86|1,017,636,623.46|
|Less: Beginning balance of cash equivalents|1,161,240,139.33|930,114,436.57|
|Net increase of cash and cash equivalents|-146,504,345.47|87,522,186.89|

 (2) Composition of cash and cash equivalents
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|I. Cash|1,014,735,793.86|1,161,240,139.33|
|Including：Cash at hand|1,720.24|17,771.09|
|Demand bank deposit|1,012,714,691.65|1,159,202,998.15|
|Demand other monetary funds|2,019,381.97|2,019,370.09|
|III. Balance of cash and cash equivalents at|1,014,735,793.86|1,161,240,139.33|
|the period end|||

77. Note of statement of changes in the owner's equity
78. The assets with the ownership or use right restricted
79. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
|||||
|-|-|-|-|
||Closing foreign currency||Closing convert to RMB|
|Items||Exchange rate||
||balance||balance|
|Including：USD|1,362,638.73|6.6166|9,016,035.42|
|HKD|471,035.43|0.8431|397,129.97|
|JPY|2,034,840.00|0.059914|121,915.40|
|Including：USD|5,663,343.89|6.6166|37,472,081.18|
|HKD|278,280.00|0.8431|234,617.87|
|Other receivable||||
|Including：USD|37,399.02|6.6166|247,454.36|
|Account payable||||
|Including： HKD|2,010,068.33|0.8431|1,694,688.61|
|USD|1,021,849.50|6.6166|6,761,169.40|
|JPY|211,992,000.00|0.059914|12,701,288.69|
|Account payable||||

|||||
|-|-|-|-|
|Including：USD|2,512,331.38|6.6166|16,623,091.81|
|JPY|494,151,302.66|0.059914|29,606,581.15|
|Short-term loans||||
|Including：USD|6,408,298.91|6.6166|42,401,150.57|
|JPY|768,403,787.00|0.059914|46,038,144.49|
|Interest payable||||
|Including：USD|52,815.07|6.6166|349,456.19|

 80. Hedging
81.Other
VIII. Changes of consolidation scope
1. Enterprise consolidation not under the same control
2. Business combination under the same control
3. Counter purchase
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
IX. Equity in other entity
1. Equity in subsidiary
（1）Constitute of 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||||||Establish|
||||Polarizer||||
|Shengbo|Shenzhen|Shenzhen|production and|60.00%|||
|Ophotoelectric|||||||
|Technology Co.,|||sales||||
|Ltd|||||||
|Shenzhen|||||||
||||Operating import||||
|Shenfang Import|Shenzhen|Shenzhen|||60.00%|Establish|
|& export Co.,|||and export||||
|Ltd.|||business||||
|Shengtou||||||Establish|
||||Production and||||
|(Hongkong)|Hongkong|Hongkong|||60.00%||
||||sales of polarizer||||
|Co.,Ltd.|||||||

（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%|-5,088,877.02|0.00|1,121,281,524.77|
|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|2,238,|5 1,109,9|3,348,5||||2,225,7|1,056,0|3,281,8||||
|||||393,602|172,700|566,302||||328,224|172,994|501,219|
|n|54,050|. 80,295.|34,345.||||95,205.|83,463.|78,668.||||
|||||,324.26|,141.65|,465.91||||,382.21|,880.83|,263.04|
|Shengbo|8|3 03|86||||28|64|92||||

||
|-|
|Ophotoel|
|ectric|
|Technolo|
|gy Co.,|
|Ltd|

In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Current term||||Last term||||
|||||Cash flow||||Cash flow|
||||Total||||Total||
|Subsidiaries|Operating|||from|Operating|||from|
|||Net profit|comprehensi|||Net profit|comprehensi||
||revenue|||operating|revenue|||operating|
||||ve income||||ve income||
|||||activities||||activities|
|Shenzhen|||||||||
|Shengbo|||||||||
||392,382,938|-13,141,819|-13,141,819|-123,066,99|377,252,892|-9,376,931.|-9,376,931.|-129,287,75|
|Ophotoelectri|||||||||
||.55|.59|.59|7.41|.13|35|35|6.72|
|c Technology|||||||||
|Co., Ltd|||||||||

2. The transaction of the Company with itsowner’s equity share changed but still controlling the
subsidiary
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.|||||||

（2）.The Summarized Financial Information of Unimportant Joint Ventures and Associated
Enterprises
In RMB
||||
|-|-|-|
||Year-end balance/ Amount of current|Year-beginning balance/ Amount of|
||period|previous period|
|Joint venture：|--|--|
|Total book value of the investment|5,363,311.33|5,369,450.56|
|Total amount of the pro rata calculation of|||
||--|--|
|the following items|||
|-- Net profit|393,860.77|262,962.99|
|-- Total comprehensive income|393,860.77|262,962.99|
|Associated enterprise：|--|--|
|Total book value of the investment|15,156,262.05|15,011,284.00|
|Total amount of the pro rata calculation of|||
||--|--|
|the following items|||
|--Net profit|223,084.90|838,516.63|
|--Other Comprehensive income|120,349.15|-885,191.31|
|--Total comprehensive income|343,434.05|-46,674.68|

 (3) Significant common operation
|||||||
|-|-|-|-|-|-|
|||||Proportion /shareportion||
|Name|Main operating place|Registration place|Business nature|||
|||||Directly|Indirectly|
|Guanhua Building|Shenzhen|Shenzhen|Cooperate|50.16%||

Other notes
According to the company along with Hongkong Qiaohui Industries Co.,Ltd. signed "Agreement
on cooperative development and construction of Guanhua building", jointly developed Guanhua b uilding construction, the company invested50.16%, Hong Qiao Hui Industrial Co., Ltd. invested 49.84%, the two sides need to agree matters affecting the cooperation projects.
Guanhua Building project has been completed in the current reporting period, and the two parities carried out the
split according to the actual investment ratio of50.16% and49.84%.
X. The risk related financial instruments
XI. Disclosure of fair value
1. Ending fair value of the assets and liabiliies measured by fair value
In RMB
||||||
|-|-|-|-|-|
||Ending fair value||||
|Items|||||
||First-order|Second-order|Third-order|Total|
|I. Consistent fair value|||||
||--|--|--|--|
|measurement|||||
|(1).Available for sale|||||
||7,314,138.86|||7,314,138.86|
|financial assets|||||
|1.Equity instrument|||||
||7,314,138.86|||7,314,138.86|
|investment|||||
|Total of Consistent fair|||||
||7,314,138.86|||7,314,138.86|
|value measurement|||||
|II. Non –persistent|||||
||--|--|--|--|
|measure|||||

2. Market price recognition basis for consistent and inconsistent fair value measurement items at level
The fair value of financial assets available for sale at the end of period is measured based on the closing price of Shenzhen Stock Exchange on June 29,2018.
XII. Related parties and related-party transactions
1.Parent company information of the enterprise
|||||||
|-|-|-|-|-|-|
||||Registered capital|The parent company|The parent company|
|Name|Registered address|Nature||||
|||||of the Company's|of the Company’s|
||||（ten thousand）|||
|||||shareholding ratio|vote ratio|
||18/F, Investment|Equity investment ,||||
|Shenzhen||||||
||Building, Shennan|Real-estate||||
|Investment Holdings|||23,149 million|46.21%|49.39%|
||Road, Futian|Development and||||
|Co.,Ltd.||||||
||District, Shenzhen|Guarantee||||

Notes
The company is authorized and approved to be state-owned independent company by Shenzhen
Government, and it Executes financial contributor function on state-owned enterprise within
authorization scope.
The finial control of the Company was ShenzhenPeople’s Govemment state owned assets supervision& Administration Commission.
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|

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|
|Shenzhen Xiangjiang Trade Co., Ltd.|Sharing 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|

5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
|||||||
|-|-|-|-|-|-|
|||||Whether over thetrading limit(Y/N)||
|Related party|Content|Current amount|Approval trading limit||Last amount|
|Kunshan Zhiqimei||||||
|Material|Purchasing|||||
|||14,103,038.28|||18,602.39|
|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|
|Shenzhen Tianma||||
||Sales polarizer sheet|1,166,047.31|3,044,298.73|
|Microelectronics Co., Ltd.||||

（2）Key managements payment
In RMB
||||
|-|-|-|
|Items|2018 payment|2017 payment|
|Key managements payment|2,643,194.00|1,897,026.00|

（3）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. As of June 30, 2018, the balance of the company's borrowings was 40 million 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|
|Account receivable|Shenzhen Tianma|688,530.73|34,426.54|1,555,500.44|77,775.02|

|||||||
|-|-|-|-|-|-|
||Microelectronics|||||
||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|||||
|||500,000.00|25,000.00|440,508.46|22,025.42|
|receivable|Underwear Co., Ltd.|||||
||Kunshan Zhiqimei|||||
|Account receivable|Material Technology|499,445.21|24,972.26|||
||Co., Ltd.|||||

（2）Payables
In RMB
|||||
|-|-|-|-|
|Name|Related party|Amount at year end|Amount at year beginning|
||Shenzhen Xinfang Knitting Co.,|||
|Other payable||244,789.85|244,789.85|
||Ltd.|||
||Shenzhen Changlianfa Printing|||
|Other payable||1,178,449.95|1,178,449.95|
||and dyeing Co., Ltd.|||
||Shenzhen Haohao Property|||
|Other payable||4,454,489.85|4,104,489.85|
||Leasing Co., Ltd.|||
|Other payable|Yehui International Co.,Ltd.|1,145,111.18|1,135,399.49|
|Other payable|Shengbo （Hongkong）Co., Ltd.|315,000.00|315,000.00|
||Shenzhen Shenchao Technology|||
|Interest payable||46,643,162.06|45,570,662.08|
||Investment Co., Ltd.|||

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 scope of executive price of the company’s other equity instruments at||
||The company issued 4,752,300 restricted stocks at the|
|the end of the period and the remaining term of the contract||

||
|-|
|end of the period, and the grant price was 5.73|
|yuan/share. Restrictions shall be lifted at the rate of|
|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.|

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 liftingperiod：
The first restriction lifting period
In 2018, the earnings per share shall be no less than 0.07 yuan, and shall not be lower than
the 75 fractiles level of the comparable listed companies in the same industry; the growth rate of
operating revenue in 2018 compared with 2016 is not less than70%, and is not lower than the 75
fractiles level of comparable listed companies in the same industry; in 2018, the proportion of
optical film business such as polarizers to operating revenue is no less than70%.
The second restriction lifting period
In 2019, earnings per share shall be no less than 0.08 yuan, and shall not be lower than the
75 fractiles level of the comparable listed companies in the same industry; the growth rate of
operating revenue in 2019 compared with 2016 is not less than130%, and is not lower than the 75 fractiles level of comparable listed companies in the same industry; in 2019, the proportion of
optical film business such as polarizers to operating revenue is not less than75%
The third restriction lifting period
In 2020, the earnings per share shall be no less than 0.20 yuan, and shall not be lower than
the 75 fractiles level of comparable listed companies in the same industry; the growth rate of
operating revenue in 2020 is not less than200% compared to 2016, and is not lower than the 75
fractiles level of comparable listed companies in the same industry. In 2020, the proportion of
optical film business such as polarizers to operating revenue will be no less than80%.
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|
|The reasons for the significant difference between the current||
||Nil|
|estimate and the previous estimate||
|Equity-settled share-based payment is included in the accumulated||
||3,735,685.54|
|amount of capital reserve||
|Total amount of fees confirmed by equity-settled share-based||
||4,277,070.00|
|payments in the current period||

3. The Stock payment settled by cash
□ Applicable√ Not applicable
4. Modification and termination of the stock payment
Nil
5.Other
XIV. Commitments
1.Importance commitment events
Important commitments of not existence of balance sheet date
2. Contingency
(1) Significant contingency at balance sheet date
（2）The Company have no significant contingency to disclose, also should be stated
The was no significant contingency in the Company.
XV. Notes s of main items in financial reports of parent company
（1）Account receivable
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year-beginning|||||
||Book Balance||Bad debt provision|||Book Balance||Bad debt provision|||
|Category|||||Book||||||
||Amount|Proportio|Amount|Proportion(%)||Amount|Proportio|Amount|Proportion(|Book value|
||||||value||||||
|||n(%)|||||n(%)||%)||
|Account receivables|||||||||||
|provided bad debt|575,125.08||28,756.||546,368.|473,19||23,659.7||449,536.2|
|||100.00%||5.00%|||100.00%||5.00%||
|provision in credit|||25||83|6.00||9||1|
|risk groups|||||||||||
||575,125.08||28,756.||546,368.83|473,19||23,659.7||449,536.21|
|Total||100.00%||5.00%|||100.00%||5.00%||
||||25|||6.00||9|||

 Receivable accounts with large amount individually and bad debt provisions were provided.
□ Applicable√ Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable□Not applicable
In RMB
|||||
|-|-|-|-|
||Amount in year-end|||
|Aging||||
||Account reivable|Provision for bad debts|Proportion%|
|Within item 1 year||||
|Subtotal within 1 year|575,125.08|28,756.25|5.00%|
|Total|575,125.08|28,756.25|5.00%|

Notes：
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a
portfolio
□Applicable√Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
（2）Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB
5,096.46;The amount of the reversed or collected part during the reporting period was of
RMB0.00.
2. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
||||||||
|-|-|-|-|-|-|-|
||Amount in year-end|||Amount in year- begin|||
|Category|||||||
||Book Balance|Bad debt provision|Book|Book Balance|Bad debt provision|Book value|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Proportio||Proportion(%)|value||Proportio||Proportion(||
||Amount||Amount|||Amount||Amount|||
|||n(%)|||||n(%)||%)||
|Other Accounts|||||||||||
|receivable of|||||||||||
|individual||||||13,781|||||
||13,781,||13,781,|||||13,781,4|||
|significance and||49.99%||92.28%||,464.6|67.70%||100.00%||
||464.60||464.60|||||64.60|||
|subject to individual||||||0|||||
|impairment|||||||||||
|assessment|||||||||||
|Other Accounts|||||||||||
|receivable subject to|||||||||||
|impairment|13,477,||840,876||12,636,4|6,262,||480,146.||5,782,620|
|||48.88%||5.63%|||30.77%||7.67%||
|assessment by credit|375.01||.78||98.23|767.01||38||.63|
|risk characteristics of|||||||||||
|a portfolio|||||||||||
|Other Accounts|||||||||||
|receivable of|||||||||||
|individual|||||||||||
||311,486||311,486|||311,48||311,486.|||
|insignificance but||1.13%||2.09%|||1.53%||100.00%||
||.35||.35|||6.35||35|||
|subject to individual|||||||||||
|impairment|||||||||||
|assessment|||||||||||
||||||12,636,498.23|20,355||||5,782,620.63|
||27,570,||14,933,|||||14,573,0|||
|Total||100.00%||||,717.9|100.00%||||
||325.96||827.73|||||97.33|||
|||||||6|||||

Other Receivable accounts with large amount individually and bad debt provisions were provided√ Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
||Balance at year-end||||
|Other receivable （Unit）|||||
||Other receivable|Provision for bad debts|Proportion%|Reason|
|Jiangxi Xuanli String Co.,||||No executable property,|
||11,389,044.60|11,389,044.60|100.00%||
|Ltd.||||unlikely to recover.|
|Anhui Huapeng Textile|||||
||1,800,000.00|1,800,000.00|100.00%|Estimated irrecoverable|
|Co.,Ltd.|||||
|Shenzhen Tianlong||||Has been conceled,|
||592,420.00|592,420.00|100.00%||
|Induatry& Trade Co., Ltd.||||unlikely to recover|
|Total|13,781,464.60|13,781,464.60|--|--|

（2）In the groups, other accounts receivable adopting aging analysis method to withdraw
bad debt provision:
√ Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Amount in year-end|||
|Aging||||
||Other receivable|Bad debt provision|Withdrawal proportion|
|Subitem Within 1 year||||
|Subtotal within 1 year|12,208,426.23|610,421.31|5.00%|
|1-2 years|1,010,047.30|101,004.73|10.00%|
|Over 3 years|258,901.48|129,450.74|50.00%|
|Total|13,477,375.01|840,876.78||

Notes：
Other receivable account in Group on which bad debt provisions were provided on percentage
basis：
□Applicable√Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the
portfolio：
□Applicable√Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB335,730.40, the acount collected or switches back amounting to RMB 0.00.
Significant amount of reversed or recovered bad debtprovision：
In RMB
||||
|-|-|-|
|Name|Amount|Method|

 (3) Other account receivables category by nature of money
In RMB
||||
|-|-|-|
|Category|Year-end balance|Year-beginning balance|
|Internal current account|12,888,758.00|5,075,600.00|
|Unit account|14,607,817.96|15,206,367.96|
|Other|73,750.00|73,750.00|
|Total|27,570,325.96|20,355,717.96|

 (4)Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
|||||||
|-|-|-|-|-|-|
|Name|Nature|Year-end balance|Age|Portion in total other|Bad debt provision|

|||||||
|-|-|-|-|-|-|
|||||receivables(%)|of year-end balance|
|First|Unit account|12,575,600.00|Over 1-2 years|45.61%|11,389,044.60|
|Second|Unit account|11,389,044.60|Over 5 years|41.31%|712,800.00|
|Third|Unit account|1,800,000.00|1-2 years|6.53%|1,800,000.00|
|Fourth|Unit account|592,420.00|Over 5 years|2.15%|592,420.00|
|Fifth|Unit account|575,125.08|Within 1 year|2.08%|28,756.25|
|Total|--|26,932,189.68|--||14,523,020.85|

 3.Long-term equity investment
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items||Bad debt|||Bad debt||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Investment to the|||||||
||1,983,892,472.||1,967,309,843.|1,981,050,902.||1,964,468,273.|
|||16,582,629.30|||16,582,629.30||
|subsidiary|97||67|97||67|
|Investment tojoint ventures andassociatedenterprises|||||||
||20,519,573.38|0.00|20,519,573.38|20,380,734.56||20,380,734.56|
||2,004,412,046.||1,987,829,417.05|2,001,431,637.||1,984,849,008.23|
|Total||16,582,629.30|||16,582,629.30||
||35|||53|||

（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|||||||
|Optoelectrionc|1,924,842,841.|||1,926,907,531.|||
|||2,064,690.00|0.00|||14,415,288.09|
|Technology Co.,|18|||18|||
|Ltd.|||||||
|Shenzhen Lisi|||||||
|Industrial|||||||
||8,080,587.80|86,400.00||8,166,987.80|||
|Development Co.,|||||||
|Ltd.|||||||
|Shenzhen Beauty|||||||
||30,895,388.23|335,880.00||31,231,268.23||2,167,341.21|
|Centruty Garment|||||||

||||||
|-|-|-|-|-|
|Co., Ltd.|||||
|Shenzhen|||||
||15,499,430.44|120,960.00|15,620,390.44||
|Huaqiang Hotal|||||
|Shenfang Property|||||
|Management Co.,|1,732,655.32|233,640.00|1,966,295.32||
|Ltd.|||||
||1,981,050,902.97||1,983,892,472.97|16,582,629.30|
|Total||2,841,570.00|||

（2）Investment to joint ventures and associated enterprises
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase /decrease in reporting period||||||||||
||||||||||||Closing|
||||||Adjustme|||||||
|||||||||Withdraw|||balance|
||||Decrease|Gain/loss|nt of||Declarati|||||
||Opening|Add||||Other||n||Closing|of|
|Name|||d|of|other||on of cash|||||
||balance|investmen||||equity||impairme|Other|balance|impairme|
||||investmen|Investme|comprehe||dividends|||||
|||t||||changes||nt|||nt|
||||t|nt|nsive||or profit|||||
|||||||||provision|||provision|
||||||income|||||||
|I. Joint ventures||||||||||||
|Shenzhen||||||||||||
|Haohao||||||||||||
||5,369,45|||393,860.|||400,000.|||5,363,31||
|Property||||||||||||
||0.56|||77|||00|||1.33||
|Leasing||||||||||||
|Co., Ltd||||||||||||
||5,369,45|||393,860.|||400,000.|||5,363,31||
|Subtotal||||||||||||
||0.56|||77|||00|||1.33||
|II. Associated enterprises||||||||||||
|Shenzhen||||||||||||
|Changlian||||||||||||
|fa||||||||||||
||2,107,15|||96,088.6||||||2,203,24||
|Printing||||||||||||
||5.01|||3||||||3.64||
|and||||||||||||
|dyeing||||||||||||
|Company||||||||||||
|Jordan||||||||||||
||2,233,90|||-68,777.|27,739.8|||||2,192,86||
|Garnent||||||||||||
||2.64|||00|5|||||5.49||
|Factory||||||||||||
|Yehui||||||||||||
|Internatio|10,670,2|||195,773.|92,609.3||198,456.|||10,760,1||
|nal Co.,|26.35|||27|0||00|||52.92||
|Ltd.||||||||||||

||||||||
|-|-|-|-|-|-|-|
||15,011,2|223,084.|120,349.|198,456.|15,156,2||
|Subtotal|||||||
||84.00|90|15|00|62.05||
||20,380,734.56|616,945.|120,349.|598,456.|20,519,573.38|0.00|
|Total|||||||
|||67|15|00|||

 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|||||
||31,576,065.65|5,166,425.81|30,244,081.73|4,477,749.55|
|Business|||||
|Other Business income|1,767,833.77|1,767,833.77|1,605,516.30|1,605,516.29|
|Total|33,343,899.42|6,934,259.58|31,849,598.03|6,083,265.84|

 5.Investment income
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Income from long-term equity investment|||
||616,945.67|1,620,115.63|
|measured by adopting the Equity method|||
|Investment income received from holding of|||
||574,774.15|526,586.44|
|available-for –sale financial assets|||
|Total|1,191,719.82|2,146,702.07|

 6.Other
XVI. 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|-43,338.08||
|Govemment subsidy recognized in current|||
|gain and loss(excluding those closely related|||
||5,812,167.76||
|to the Company’s business and granted|||
|under the state’s policies)|||
|Gain/loss on entrusting others with|||
||28,152,710.15||
|investment or asset managemen|||
|Other non-business income and expenditures|-20,094.83||

||||
|-|-|-|
|other than the above|||
|Less :Influenced amount of income tax|231,421.06||
|Influenced amount of minor shareholders’|||
||13,205,732.87||
|equity (after tax)|||
|Total|20,464,291.07|--|

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 earnngs per share
|||||
|-|-|-|-|
|||Earningspershare||
|Profit of report period|Weightedaverage retureon eqiuty(%)|Basicearningspershare(R|Diluted eqrnings per|
|||MB/share）|share(RMB/share)|
|Net profit attributable to the||0.02|0.02|
|Common stock shareholders of|0.40%|||
|Company.||||
|Net profit attributable to the||||
|Common stock shareholders of||||
||-0.45%|-0.0212|-0.0212|
|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