Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017 Stock code: 000045,200045 Stock Abbreviation: Shen Textile A,Shen Textile B Announcement No.: 2017-50 Shenzhen Textile (Holdings) Co., Ltd.
The Third Quarterly Report 2017
Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017 1 Important Notice
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof. All the directors attended the board meeting for reviewing the Quarterly Report.
Mr.Zhu Jun, Person in charge of the Company, Mr. Zhu Meizhu, Chief financial officer and the Mrs. Mu Linying , the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this Quarterly Report .
This Report has been prepared in both Chinese and English , In case any discrepancy , the Chinese version shall prevail.
II. Main financial data and changes of shareholders
（1）Main financial data and financial index
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not.
□ Yes√ No
|||||||||
|-|-|-|-|-|-|-|-|
|||As at the end of the||As at the end of last||||
|||||||Changed （%）over end of prev. year||
|||reporting period||year||||
|Gross assets（RMB）|4,090,812,137.82||4,119,586,266.47|||-0.70%||
|Net assets attributable to the|2,372,792,289.14||2,339,554,176.31|||||
|shareholders of the listed||||||1.42%||
|company（RMB）||||||||
|||||||Between beginning||
|||||Increase/decrease||||
|||||||of the year to the|Changed （%）over|
|||Reporting period||over the same period||||
|||||||end of the report|end of prev. year|
|||||of last year（%）||||
|||||||period||
|Operating income（RMB）|331,001,389.67|||8.27%|1,070,339,146.54||24.77%|
|Net profit attributable to the|19,241,712.46||||33,699,554.09|||
|shareholders of the listed||||186.17%|||164.28%|
|company（RMB）||||||||

Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017
||||||||
|-|-|-|-|-|-|-|
|Net profit after deducting of|||||||
|non-recurring gain/loss|||||||
|||10,458,557.56|136.41%||6,172,371.21|110.10%|
|attributable to the shareholders|||||||
|of listed company（RMB）|||||||
|Cash flow generated by business||||-212,907,824.15|||
|||--|--|||-338.46%|
|operation, net（RMB）|||||||
|Basic earning per|0.04|||0.07|||
||||200.00%|||170.00%|
|share(RMB/Share)|||||||
|Diluted gains per|0.04|||0.07|||
||||200.00%|||170.00%|
|share(RMB/Share)(RMB/Share)|||||||
|Weighted average income/asset|||||||
|||0.81%|1.85%||1.43%|3.87%|
|ratio（%）|||||||

Items and amount of non-current gains and losses
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
||Amount (Year-beginning to||
|Items|the end of the report|Notes|
||period.)||
|Non-current asset disposal gain/loss(including the write-off part|||
||-1,891.59||
|for which assets impairment provision is made)|||
|Govemment subsidy recognized in current gain and|||
|loss(excluding those closely related to the Company’s business|7,044,206.96||
|and granted under the state’s policies)|||
|Gain/loss on entrusting others with investment or asset|||
||34,608,333.31||
|management|||
|Gain/loss on Contingent events irrelevant to the Company’s|||
||418,132.96||
|normal business|||
|Other non-business income and expenditures other than the|||
||5,321,327.72||
|above|||
|Less :Influenced amount of income tax|1,795,610.24||
|Influenced amount of minor shareholders’ equity (after tax)|18,067,316.24||
|Total|27,527,182.88|--|

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
None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information
Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017 disclosure explanatory Announcement No.1- Non–recurring gain/loss in the report period.
II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders
In shares
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Total preference||||||
|||||||||shareholders with the voting||||||
||Total number of common|||||||||||||
||||||40,954|||power recovered at the end||||0||
||shareholders at the period-end|||||||||||||
|||||||||of the reporting period(if||||||
|||||||||any)||||||
||Shares held by the top 10 shareholders|||||||||||||
|||||||||||Amount of|Pledging or freezing|||
|||||||||||tradable shares||||
||Shareholder||Properties of||Share|||||||||
||||||||Quantity|||with|Status of the|||
||name||shareholder||proportion %||||||||Quantity|
|||||||||||Conditional|shares|||
|||||||||||held||||
|ShenzhenInvestmentHoldings Co.,Ltd.||State-ownedlegal person||46.21%||234,069,436|||0|||||
|ShenzhenShenchaoTechnologyInvestment Co.,Ltd.||State-ownedLegal person||3.18%||16,129,032|||0|||||
|Sun Huiming||DomesticNature person||0.47%||2,396,826|||0|||||
|Liu Dongxia||DomesticNature person||0.30%||1,523,900|||0|||||
|Su Yunze||DomesticNature person||0.28%||1,401,500|||0|||||
|Zhu Ye||DomesticNature person||0.26%||1,331,945|||0|||||
|Wang Mincang||DomesticNature person||0.25%||1,280,236|||0|||||
|Hong Fan||DomesticNature person||0.19%||972,400|||0|||||
|Su Zhifen||DomesticNature person||0.19%||965,200|||0|||||

Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|Central HuijinAssetManagementCo., Ltd.||State-ownedLegal person|0.19%||958,300|0|||
||Shareholding of top 10 shareholders of unrestricted shares||||||||
|||||Quantity of unrestricted shares held at the end of the|||Share type||
||Name of the shareholder||||||||
|||||reporting period|||Share type|Quantity|
|Shenzhen Investment HoldingsCo., Ltd.|||234,069,436||||RMB Common||
|||||||||234,069,436|
||||||||shares||
|Shenzhen Shenchao TechnologyInvestment Co., Ltd.|||16,129,032||||RMB Common||
|||||||||16,129,032|
||||||||shares||
|Sun Huiming|||2,396,826||||Foreign shares||
||||||||placed in||
|||||||||2,396,826|
||||||||domestic||
||||||||exchange||
|Liu Dongxia|||1,523,900||||RMB Common||
|||||||||1,523,900|
||||||||shares||
|Su Yunze|||1,401,500||||RMB Common||
|||||||||1,401,500|
||||||||shares||
|Zhu Ye|||1,331,945||||RMB Common||
|||||||||1,331,945|
||||||||shares||
|Wang Mincang|||1,280,236||||RMB Common||
|||||||||1,280,236|
||||||||shares||
|Hong Fan|||972,400||||RMB Common||
|||||||||972,400|
||||||||shares||
|Su Zhifen|||965,200||||RMB Common||
|||||||||965,200|
||||||||shares||
|Central Huijin Asset ManagementCo., Ltd.|||958,300||||RMB Common||
|||||||||958,300|
||||||||shares||
|||||Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of|||||
|||||Shenzhen Investment Holdings Co., Ltd. and a person taking concerted action. Except this,|||||
||Explanation on shareholders|||the Company did not whether there is relationship between the top ten shareholders holding|||||
||participating in the margin trading|||non-restricted negotiable shares and between the top ten shareholders holding|||||
||business|||non-restricted negotiable shares and the top 10 shareholders or whether they are persons|||||
|||||taking concerted action defined in Regulations on Disclosure of Information about|||||
|||||Shareholding of Shareholders of Listed Companies.|||||
||Participation of top 10|||The Company Shareholder Liu Dongxia holds 1,523,900 shares of the Company through|||||
||unconditional common share|||stock account with credit transaction , The Company Shareholder Zhu Ye holds 1,331,945|||||
||shareholders in securities margin|||shares of the Company through stock account with credit transaction. The Company|||||
||trading (if any)|||Shareholder Wang Mincang holds 780,036 shares of the Company through stock account|||||

Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017
||
|-|
|with credit transaction.|

Agreed re-purchasing by theCompany’s top 10 shareholders of common shares and top 10 shareholders of unconditional common shares in the report period
□ Yes√ No
No agreed re-purchasing is performed by theCompany’s shareholders in the report period.
2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period
□Applicable√ Not applicable
Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017 III Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes
√ Applicable□ Not applicable
1. The closing balance of Notes receivable is RMB 27.8416 million, decreased by33.57% compared with the beginning of the year, Mainly due to the maturity of the notes during the reporting period;
2.The closing balance of advance payment is RMB45.2897 million, increassed by568.65% compared with the beginning of the year, Mainly due to the increase in the advance payment in import and export trade and the increase in the pre-paid equipment payment for the II phase project of TFT-LCD polarizer;
3.The closing balance of interest receivable is RMB13.9065 million ,increased by109.03% compared with the beginning of theyear，Mainly due to the provision for the interest on deposit in the reporting period;
4.The closing balance of Other account receivables is RMB 148.7362 million , increassed by121.09% compared with the beginning of the year, Mainly due to the increase in the money used for the technology and management services in the construction period and the whole process of putting-into production to the mass production of the light guide plate project and the reflective film project of Kunshan Jinlin and Zhejiang Jin Hao;
5. The closing balance of Construction in progress is RMB 283.8712 million，increassed by136.95% compared with the beginning of the year, Mainly due to the increase in the investment for the construction of TFT-LCD polarizer Phase II project;
6. The closing balance of Short-term bank loan facilities is RMB 46.6047million，increassed by277.8% compared with the beginning of the year, Mainly due to the increase in the documentary bills payment for the import of raw materials;
7. The closing balance of account payable is RMB 120.0998 million,decreased by31.55% compared with the beginning of the year, Mainly due to the payment of accounts payable during the reporting period;
8. The closing balance of Advances from customers is RMB51.5402 million, increased by70.11% compared with the beginning of the year, Mainly due to the increase in advances on sales in the import and export trade;
9. The closing balance of Employee benefits payable is RMB19.141 million , decreased by30.09% compared with the beginning of the year, Mainly due to the payment of staff salaries during the reporting period;
10. Financial expenses in current period increased by RMB-22.0509 million and325.82% year onyear，mainly
Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017 due to the increase in interest income and the decrease in exchange losses during the reporting period;
11. Impairment loss of assets in current period increased by RMB38.8051 million and147.24% year onyear， Mainly due to the provision for bad debts and the increase in inventory falling price reserves;
12. Investment Income in current period increased by RMB36.6708 million and792.44% year on year, Mainly due to the increase in proceeds in the trust wealth management during the reporting period;
13. Income tax expenses in current period increased by RMB10.6192 million and38.22% year onyear，Mainly due to the increase in taxable income during the reporting period;
14. The net cash flows from operating activities in current period decreased by RMB-212.9078 million and338.46% year onyear，Mainly due to the increase in the money used for the technology and management services in the construction period and the whole process of putting-into production to the mass production of the light guide plate project and the reflective film project of Kunshan Jinlin and Zhejiang Jin Hao;
15. The net cash flows from financing activities in current period increased by RMB1.8038 million and102.34% year onyear，Mainly due to more cash paid for the repayment of debt in the same period last year.
II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal.
√ Applicable□ Not applicable
(1) Progress information about the second phase of No.6 line TFT-LCD polarizer project
As of September 30, 2017, the construction of the Phase II project of No.6 line has been carried out according to the schedule, and the purification project and the procurement, installation and acceptance of the main equipment and auxiliary equipment were completed, the whole production line commissioning was complete, the sample had passed the product reliability test, and currently it's undergoing the speeding-up test and the trial production of new product.
As of September 30, 2017, the accumulated investment for second phase of No.6 line project was RMB 503.8026 million, accounting for71.94% of the adjusted total investment of RMB 700.34 million. Thereinto, the use of raised funds was RMB 166.8024 million and the self-own funds and government funds used were RMB 337.0002 million.
(2) Progress in the construction of Guanhua Building
At the 11th meeting of the fifth session of the Board of Directors of the Company, the "Proposal about cooperative development and construction of Guanhua Building" was examined and approved, agreed that the company contributed RMB 42.21 million in cooperation with Hong Kong Qiao Hui Industrial Co., Ltd and Shenzhen Guanhua Printing& Dyeing Co., Ltd to develop and construct Guanhua Building project. The project construction started on October 15, 2011, and currently, the construction project completion of acceptance for the
Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017 record was obtained on June 26, 2017, Currently, the project has been completed, and it's undergoing the project settlement, and the settlement draft for examination has been completed and sent to the Project Cost Reviewing Station of Nanshan District for reviewing.
On August 24, 2017, the Proposal about Increasing Investment in Guan Hua Building Project was examined an approved in the third meeting of the
7th
board of directors, agreed to increase the total investment in Guanhua Building project from RMB 84.15 million to RMB 122.94 million, of which the proportion of equity the company has is50.16%, therefore it's estimated that RMB 19.46 million shall be contributed, yet the actual investment shall be based on the final settlement amount of the project.For details JuchaoWebsite:（http://www.cninfo.com.cn. (Announcement No.2017--47).
(3)Matters relating to the signing of the cooperation agreement by a subsidiary
As of September 30, 2017, the light guide plate production line project (Phase I) cooperated between the company's holding subsidiary-Shenzhen Shengbo Optoelectronic Technology Co., Ltd and Kunshan Jinlin Optoelectronic Materials Co., Ltd, and the LCD reflective film production line project (Phase I) cooperated between Shenzhen Shengbo Optoelectronic Technology Co., Ltd and Zhejiang Jin Hao Optoelectronic Materials Co., Ltd have been in smooth progress. Shengbo Optoelectronic performed the technical guidance and project management services stipulated in the agreement and respectively received the RMB 3 million fees and the RMB 2.6 million fees for service of production line construction.
Shengbo Optoelectronic will continue to provide technical guidance for the construction of the second-time matching project of the light guide plate production line; speed up the installation and commissioning of the three production lines of liquid crystal reflective film production line project; meanwhile will assist the two projects to complete the acceptance work, supervising the equipment debugging and raw material preparation and the completion of first batch products.
|||||
|-|-|-|-|
||||Description of the website for disclosing|
||Overview of material matters|Date of disclosing||
||||provisional announcements|
|Matters relating to the signing ofthe cooperation agreement by asubsidiary||||
||||(www.cninfo.com.cn)，Announcement|
|||June 10,2017||
||||No.：2017-29|
|Increasing investment in GuanHua Building Project|||(www.cninfo.com.cn)，Announcement|
|||August 26,2017||
||||No.：2017-47|

III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period
√Applicable□Not applicable
||||||||
|-|-|-|-|-|-|-|
||Commit|||Time of|Period of|Fulfillme|
|Commitment||Type|Contents||||
||ment|||making|commitm|nt|

Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017
||||||||
|-|-|-|-|-|-|-|
||maker|||commitm|ent||
|||||ent|||
||||As Shenzhen Investment Holdings Co., Ltd., the||||
||||controlling shareholder of the company,||||
||||committed when the restricted-for-sale shares||||
||||from the shares restructuring were listed for||||
||||circulation in the market: i. if they plan to sell||||
||||the shares through the securities exchange||||
||Shenzhen||||||
|||Share|system in the future, and the decrease of the||||
||Investme||||Sustained|Under|
|Commitment||reduction|shares they hold reaches 5% within 6 months|August 4,|||
||nt||||and|Fulfillme|
|on share reform||commitm|after the first decrease, they will disclose an|2006|||
||Holdings||||effective|nt|
|||ent|announcement indicating the sale through the||||
||Co., Ltd.||||||
||||company within two trading days before the first||||
||||decrease; ii. They shall strictly observe the||||
||||“Guidelines on Transfer of Restricted-for-sale||||
||||Original Shares of Listed Companies” and the||||
||||provisions of the relevant business principles of||||
||||Shenzhen Stock Exchange.||||
|Commitment in|||||||
|the acquisition|||||||
|report or the|||||||
|report on equity|||||||
|changes|||||||
||||The company, according to the relevant||||
||||provisions of Measures for the Administration||||
||||of Major Asset Restructuring of Listed||||
||||Companies, No.10 Guidelines for Business||||
|||No major|Handling of Listed Companies- Major Asset||||
|Commitment|Shenzhen|asset|Restructuring and No.9 Business Memorandum||||
|made upon the|Textile(H|restructur|of Main Board Information|December|February||
|||||||Fulfilled|
|assets|oldings)|ing|Disclosure-Suspending Stock-trading for Listed|19,2016|18,2017||
|replacement|Co., Ltd.|commitm|Companies, committed that the company shall||||
|||ents|not plan a major asset restructuring matter in 2||||
||||months commenced from the date of||||
||||termination of the major asset restructuring||||
||||namely the date of announcement on resuming||||
||||the company's stock trading.||||
|||Commit|Shenzhen Investment Holdings Co., Ltd. signed||||
||Shenzhen||||||
|||ments on|a “Letter of Commitment and Statement on||||
|Commitments|Investme||||Sustained|Under|
|||||October 9,|||
|||horizonta|Horizontal Competition Avoidance” when the||||
|made upon|nt||||and|Fulfillme|
|||l|company issued non-public stocks in 2009.|2009|||
|issuance|Holdings||||effective|nt|
|||competiti|Pursuant to the Letter of Commitment and||||
||Co., Ltd.||||||
|||on,|Statement, Shenzhen Investment Holdings Co.,||||

Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017
|||||||
|-|-|-|-|-|-|
||related|Ltd. and its wholly owned subsidiary,||||
||transactio|subsidiaries under control or any other||||
||n and|companies that have actual control of it shall not||||
||capital|be involved in the business the same as or||||
||occupatio|similar to those Shenzhen Textile currently or||||
||n|will run in the future, or any businesses or||||
|||activities that may constitute direct or indirect||||
|||competition with Shenzhen Textile; if the||||
|||operations of Shenzhen Investment Holdings||||
|||Co., Ltd. and its wholly owned subsidiaries,||||
|||subsidiaries under control or other companies||||
|||that have actual control of it compete with||||
|||Shenzhen Textile in the same industry or||||
|||contradict the interest of the issuer in the future,||||
|||Shenzhen Investment Holdings Co., Ltd. shall||||
|||urge such companies to sell the equity, assets or||||
|||business to Shenzhen Textile or a third party;||||
|||when the horizontal competition may occur due||||
|||to the business expansion concurrently||||
|||necessary for Shenzhen Investment Holdings||||
|||Co., Ltd. and its wholly owned subsidiaries,||||
|||subsidiaries under control or other companies||||
|||that have actual control of it and Shenzhen||||
|||Textile, Shenzhen Textile shall have priority.||||
|||The commitments during the period non-public||||
|||issuance in 2012: 1. Shenzhen Investment||||
|||Holdings, as the controlling shareholder of||||
|||Shenzhen Textile, currently hasn't the||||
||Commit|production and business activities of||||
||ments on|inter-industry competition with Shenzhen||||
||horizonta|Textile or its share-holding subsidiary. 2.||||
||l|Shenzhen Investment Holdings and its||||
|Shenzhen||||||
||competiti|share-holding subsidiaries or other enterprises||||
|Investme||||Sustained|Under|
||on,|owned the actual control rights can't be directly|July 14,|||
|nt||||and|Fulfillme|
||related|and indirectly on behalf of any person, company|2012|||
|Holdings||||effective|nt|
||transactio|or unit to engage in the same or similar business||||
|Co., Ltd.||||||
||n and|in any districts in the future by the form of||||
||capital|share-holding, equity participation, joint||||
||occupatio|venture, cooperation, partnership, contract,||||
||n|lease, etc., and ensure not to use the controlling||||
|||shareholder's status to damage the legitimate||||
|||rights and interests of Shenzhen Textile and||||
|||other shareholders, or to gain the additional||||
|||benefits. 3. If there will be the situation of||||

Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017
||||
|-|-|-|
|||inter-industry competition with Shenzhen|
|||Textile for Shenzhen Investment Holdings and|
|||its share-holding subsidiaries or other|
|||enterprises owned the actual control rights in the|
|||future, Shenzhen Investment Holdings will|
|||promote the related enterprises to avoid the|
|||inter-industry competition through the transfer|
|||of equity, assets, business and other ways. 4.|
|||Above commitments will be continuously|
|||effective and irrevocable during Shenzhen|
|||Investment Holdings as the controlling|
|||shareholder of Shenzhen Textile or indirectly|
|||controlling Shenzhen Textile.|
|Equity|||
|incentive|||
|commitment|||
|Other|||
|commitments|||
|made to|||
|minority|||
|shareholders|||
|Executed|||
||Yes||
|timely or not?|||
|If the|||
|commitments|||
|failed to|||
|complete the|||
|execution when|||
|expired, should|||
|specifically|Nil||
|explain the|||
|reasons of|||
|unfulfillment|||
|and the net|||
|stage of the|||
|working plan|||

Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017IV．Prediction of Business performance for 2017
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason.
□Applicable√ Not applicable
V. Investment in securities
□ Applicable√Not applicable
No Securities investment in period
VI. Investment in derivatives
□ Applicable√Not applicable
There is no derivative investment during the report period.
VII. The registration form of acceptance of investigation, communication and interview in the report period for future reference
□ Applicable√ Not applicable
The Period has no research, communication and written inquiry from the investors in the report period.
VIII. External guarantee get out of line
□ Applicable√Not applicable
The Company has no external guarantee get out of the line in the Period
IX. Controlling shareholder and its related parties occupying non-business capital of the listed company
□ Applicable√Not applicable
There are no controlling shareholder and its related parties occupying non-business capital of the listed company in Period
X.Implementation of the social Responsibility of taking targeted measures to alleviate poverty in light of local Conditions.
In The report third quarter, the company neither carried out the work of taking targeted measures to alleviate poverty in light of local conditions nor has such a plan.
Shenzhen Textile(Holdings) Co., Ltd. The Third Quarterly Report 2017 The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd. October 28,2017