Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Financial Report 2016
August 26, 2016
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements:RMB
1. Consolidated balance sheet
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
June 30,2016
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|665,289,686.79|752,314,871.53|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair value|||
|with variations accounted into current|||
|income account|||
|Derivative financial assets|||
|Bill receivable|33,652,411.33|18,841,745.16|
|Account receivable|202,464,073.42|182,766,372.05|
|Prepayments|30,050,353.97|7,853,818.19|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts|||
|receivable|||
|Interest receivable|23,730,926.13|30,298,938.80|
|Dividend receivable|||
|Other account receivable|64,460,893.53|45,133,672.10|
|Repurchasing of financial assets|||
|Inventories|293,583,314.51|308,775,044.88|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|421,553,675.47|513,553,675.47|
|Total of current assets|1,734,785,335.15|1,859,538,138.18|
|Non-current assets：|||
|Loans and payment on other’s behalf|||
|disbursed|||
|Disposable financial asset|40,254,753.07|43,241,524.06|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|23,610,461.07|22,879,269.06|
|Property investment|182,936,427.69|134,389,963.05|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|Fixed assets|756,368,065.28|790,019,487.16|
|Construction in progress|79,066,981.68|75,803,586.70|
|Engineering material|||
|Fixed asset disposal|3,810.00||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|40,053,060.79|40,626,936.34|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|857,697.49|633,541.50|
|Differed income tax asset|2,503,160.91|2,262,532.65|
|Other non-current asset|||
|Total of non-current assets|1,125,654,417.98|1,109,856,840.52|
|Total of assets|2,860,439,753.13|2,969,394,978.70|
|Current liabilities|||
|Short-term loans|26,220,880.25|53,866,521.87|
|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|||
|Bill payable|||
|Account payable|191,876,704.78|227,528,808.60|
|Advance payment|44,472,178.76|28,199,415.11|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|20,166,586.08|35,307,822.40|
|Tax payable|39,082,682.02|14,682,643.09|
|Interest payable|41,303,674.48|39,088,887.96|
|Dividend payable|||
|Other account payable|126,923,350.93|125,775,723.80|
|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|490,046,057.30|564,449,822.83|
|Non-current liabilities：|||
|Long-term loan|120,000,000.00|120,000,000.00|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|Long-term payable employees’s|||
|remuneration|||
|Special payable|||
|Expected liabilities|||
|Deferred income|97,358,454.18|99,524,165.58|
|Deferred income tax liability|10,572,975.18|10,851,444.74|
|Other non-current liabilities|||
|Total non-current liabilities|227,931,429.36|230,375,610.32|
|Total of liability|717,977,486.66|794,825,433.15|
|Owners’ equity|||
|Share capital|506,521,849.00|506,521,849.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|1,585,130,057.75|1,585,130,051.37|
|Less：Shares in stock|||
|Other comprehensive income|1,202,753.29|3,212,187.35|
|Special reserves|||
|Surplus reserves|70,539,319.86|70,539,319.86|
|Common risk provision|||
|Undistributed profit|-20,931,713.43|9,166,137.97|
|Total of owner’s equity belong to the|||
||2,142,462,266.47|2,174,569,545.55|
|parent company|||
|Minority shareholders’ equity|||
|Total of owners’ equity|2,142,462,266.47|2,174,569,545.55|
|Total of liabilities and owners’ equity|2,860,439,753.13|2,969,394,978.70|

 Legal Representative:Zhu Jun Person in charge ofaccounting：Zhu Jun Accounting Dept Leader: Mu Linying
2. Balance sheet of Parent Company
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|305,502,993.90|271,582,749.03|
|Financial assets measured at fair value|||
|with variations accounted into current|||
|income account|||
|Derivative financial assets|||
|Bill receivable|||
|Account receivable|607,599.49|819,054.57|
|Prepayments||1,754,880.00|
|Interest receivable|19,455,292.34|22,294,015.02|
|Dividend receivable||7,798,378.51|
|Other account receivable|73,063,909.49|72,543,709.78|
|Inventories|||
|Assets held for sales|||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|Non-current asset due in 1 year|||
|Other current asset|60,000,000.00|260,000,000.00|
|Total of current assets|458,629,795.22|636,792,786.91|
|Non-current assets：|||
|Disposable financial asset|38,754,753.07|41,741,524.06|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|1,987,834,227.68|1,779,103,035.67|
|Property investment|175,655,377.41|126,873,096.51|
|Fixed assets|28,294,231.09|26,579,978.92|
|Construction in progress||38,792,110.90|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|1,252,533.06|1,378,688.61|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|||
|Deferred income tax asset|3,028,411.89|2,556,126.29|
|Other non-current asset|||
|Total of non-current assets|2,234,819,534.20|2,017,024,560.96|
|Total of assets|2,693,449,329.42|2,653,817,347.87|
|Current liabilities|||
|Short-term loans|||
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Bill payable|||
|Account payable|411,743.57|411,743.57|
|Advance payment|639,024.58|639,024.58|
|Employees’ wage payable|4,670,917.51|7,299,686.80|
|Tax payable|3,742,712.94|12,558,340.06|
|Interest payable|||
|Dividend payable|||
|Other account payable|111,812,374.29|77,332,555.09|
|Liabilities held for sales|||
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|121,276,772.89|98,241,350.10|
|Non-current liabilities：|||
|Long-term loan|||
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|Employees’ wage payable|||
|Special payable|||
|Expected liabilities|||
|Deferred income|||
|Deferred income tax liability||278,469.57|
|Other non-current liabilities|||
|Total of Non-current liabilities||278,469.57|
|Total of liability|121,276,772.89|98,519,819.67|
|Owners’ equity|||
|Share capital|506,521,849.00|506,521,849.00|
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|1,576,547,075.96|1,576,547,069.58|
|Less：Shares in stock|||
|Other comprehensive income|1,202,753.29|3,212,187.35|
|Special reserves|||
|Surplus reserves|70,539,319.86|70,539,319.86|
|Undistributed profit|417,361,558.42|398,477,102.41|
|Total of owners’ equity|2,572,172,556.53|2,555,297,528.20|
|Total of liabilities and owners’ equity|2,693,449,329.42|2,653,817,347.87|

 3.Consolidated Income Statement
In RMB
||||
|-|-|-|
|Items|Report period|Same period of the previous year|
|I. Income from the key business|552,157,585.56|620,993,333.48|
|Incl：Business income|552,157,585.56|620,993,333.48|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|582,562,825.44|651,213,247.43|
|Incl：Business cost|511,249,697.64|588,138,026.03|
|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|3,126,938.03|3,546,620.66|
|Sales expense|4,516,009.63|5,010,699.03|
|Administrative expense|46,124,255.12|45,057,284.86|
|Financial expenses|8,972,817.56|-11,273,185.63|
|Asset impairment loss|8,573,107.46|20,733,802.48|
|Add：Gains from change of fir value|||
|（“-”for loss）|||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|Investment gain（“-”for loss）|2,267,193.29|47,591,946.43|
|Incl: investment gains from affiliates|711,998.34|1,029,521.87|
|Gains from currency exchange（“-”for|||
|loss）|||
|III. Operational profit（“-”for loss）|-28,138,046.59|17,372,032.48|
|Add ：Non-operational income|2,298,220.41|7,876,949.28|
|Including：Income from disposal of|||
|||300.00|
|non-current assets|||
|Less：Non business expenses|20,829.78|72,988.56|
|Incl：Loss from disposal of non-current|||
||20,770.93|72,965.54|
|assets|||
|IV.Total profit(“-”for loss)|-25,860,655.96|25,175,993.20|
|Less：Income tax expenses|4,237,195.44|17,507,965.25|
|V. Net profit|-30,097,851.40|7,668,027.95|
|Net profit attributable to the owners of|||
||-30,097,851.40|7,668,027.95|
|parent company|||
|Minority shareholders’ equity|||
|VI. Other comprehensive income|-2,009,434.06|-29,368,461.17|
|Net of profit of other comprehensive inco|||
|me attributable to owners of the parent co|-2,009,434.06|-29,368,461.17|
|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）|||
||-2,009,434.06|-29,368,461.17|
|Other comprehensive income that will b|||
|e 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|||
||-2,240,078.24|-29,362,645.46|
|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|||
||230,644.18|-5,815.71|
|ncial statements|||
|6.Other|||
|7.Net of profit of other comprehensive i|||
|ncome attributable to Minority|||
|shareholders’ equity|||
|VII. Total comprehensive income|-32,107,285.46|-21,700,433.22|
|Total comprehensive income attributable|||
||-32,107,285.46|-21,700,433.22|
|to the owner of the parent company|||
|Total comprehensive income attributable|||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|minority shareholders|||
|VIII. Earnings per share|||
|（I）Basic earnings per share|-0.06|0.015|
|(II)Diluted earnings per share|-0.06|0.015|

 Legal Representative:Zhu Jun Person in charge ofaccounting：Zhu Jun Accounting Dept Leader: Mu Linying
4. Income statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|31,599,060.18|31,527,189.03|
|Incl：Business cost|5,654,104.32|5,403,557.23|
|Business tax and surcharge|2,262,341.59|2,501,742.00|
|Sales expense|||
|Administrative expense|11,602,041.51|11,342,237.91|
|Financial expenses|-7,662,384.78|-8,502,341.69|
|Asset impairment loss|16,249.72|48,066.44|
|Add：Gains from change of fir value|||
|（“-”for loss）|||
|Investment gain（“-”for loss）|2,267,193.29|46,906,601.48|
|Incl: investment gains from affiliates|711,998.34|1,029,521.87|
|II. Operational profit（“-”for loss）|21,993,901.11|67,640,528.62|
|Add ：Non-operational income||1,807,659.21|
|Including：Income from disposal of|||
|non-current assets|||
|Less：Non business expenses|13,422.71|13,020.92|
|Incl：Loss from disposal of non-current|||
||13,422.71|13,020.92|
|assets|||
|III.Total profit(“-”for loss)|21,980,478.40|69,435,166.91|
|Less：Income tax expenses|3,096,022.38|16,610,523.73|
|IV. Net profit（“-”for net loss）|18,884,456.02|52,824,643.18|
|V.Net of profit of other comprehensive i|||
||-2,009,434.06|-29,368,461.17|
|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|-2,009,434.06|-29,368,461.17|
|e reclassified into profit or loss.|||
|1.Other comprehensive income under th|||
|e equity method investee can be reclassi|||
|fied into profit or loss.|||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|2.Gains and losses from changes in fair|||
||-2,240,078.24|-29,362,645.46|
|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|||
||230,664.18|-5,815.71|
|ancial statements|||
|6.Other|||
|VI. Total comprehensive income|16,875,021.96|23,456,182.01|
|VII. Earnings per share：|||
|（I）Basic earnings per share|||
|(II)Diluted earnings per share|||

5. Consolidated Cash flow statement
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or|||
||520,074,236.25|554,835,392.44|
|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 amount from disposal|||
|financial assets that measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Net increase of inter-bank fund|||
|received|||
|Net increase of trade financial asset|||
|disposal|||
|Net increase of repurchasing business|||
|Tax returned|44,974,078.38|47,475,737.48|
|Other cash received from business|||
||33,073,522.35|26,485,839.63|
|operation|||
|Sub-total of cash inflow|598,121,836.98|628,796,969.55|
|Cash paid for purchasing of|||
||491,834,135.65|525,580,359.12|
|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|||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|67,312,097.85|68,305,334.11|
|Taxes paid|21,995,337.06|16,544,484.93|
|Other cash paid for business activities|56,296,461.76|14,073,663.39|
|Sub-total of cash outflow from business|||
||637,438,032.32|624,503,841.55|
|activities|||
|Cash flow generated by business|||
||-39,316,195.34|4,293,128.00|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
||460,000,000.00|45,025,998.56|
|retrieving|||
|Cash received as investment gains|12,519,210.40|3,097,622.52|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|160.00|300.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||
|Other investment-related cash received|6.38||
|Sub-total of cash inflow due to|||
||472,519,376.78|48,123,921.08|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets|71,456,688.51|10,618,093.36|
|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|||
||368,000,000.00|460,057,269.91|
|activities|||
|Sub-total of cash outflow due to|||
||439,456,688.51|470,675,363.27|
|investment activities|||
|Net cash flow generated by investment|33,062,688.27|-422,551,442.19|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Incl: Cash received as investment from|||
|minor shareholders|||
|Cash received as loans|192,535,253.62|29,117,865.82|
|Cash received from bond placing|||
|Other financing –related ash received|||
|Sub-total of cash inflow from financing|||
||192,535,253.62|29,117,865.82|
|activities|||
|Cash to repay debts|270,594,907.49|71,152,714.60|
|Cash paid as dividend, profit, or|||
|interests|||
|Incl: Dividend and profit paid by|||
|subsidiaries to minor shareholders|||
|Other cash paid for financing activities|||
|Sub-total of cash outflow due to|||
||270,594,907.49|71,152,714.60|
|financing activities|||
|Net cash flow generated by financing|-78,059,653.87|-42,034,848.78|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
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|-|-|-|
|IV. Influence of exchange rate|||
||944,072.13|336,040.92|
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||-83,369,088.81|-459,957,122.05|
|equivalents|||
|Add: balance of cash and cash|||
||748,658,775.60|1,098,232,359.02|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||665,289,686.79|638,275,236.97|
|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|||
||31,740,661.93|32,013,712.91|
|rending of services|||
|Tax returned|||
|Other cash received from business|||
||34,427,040.40|12,681,386.83|
|operation|||
|Sub-total of cash inflow|66,167,702.33|44,695,099.74|
|Cash paid for purchasing of|||
||2,618,061.41|1,857,076.51|
|merchandise and services|||
|Cash paid to staffs or paid for staffs|8,966,862.21|7,190,038.46|
|Taxes paid|15,233,557.86|11,472,508.80|
|Other cash paid for business activities|3,324,789.03|3,921,092.66|
|Sub-total of cash outflow from business|||
||30,143,270.51|24,440,716.43|
|activities|||
|Cash flow generated by business|||
||36,024,431.82|20,254,383.31|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
||8,863,114.47|45,025,998.56|
|retrieving|||
|Cash received as investment gains||3,097,622.52|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|||
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||
|Other investment-related cash received|6.38||
|Sub-total of cash inflow due to|||
||8,863,120.85|48,123,621.08|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets|2,967,307.80|4,992,831.00|
|and other long-term assets|||
|Cash paid as investment|208,000,000.00||
|Net cash received from subsidiaries and|||
|other operational units|||
|Other cash paid for investment|||
|||260,000,000.00|
|activities|||
|Sub-total of cash outflow due to|||
||210,967,307.80|264,992,831.00|
|investment activities|||
|Net cash flow generated by investment|-202,104,186.95|-216,869,209.92|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|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|||
||-166,079,755.13|-196,614,826.61|
|equivalents|||
|Add: balance of cash and cash|||
||531,582,749.03|457,379,886.16|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||365,502,993.90|260,765,059.55|
|equivalents at the end of term|||

7. Consolidated Statement on Change inOwners’ Equity
Amount in this period
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in this period|||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||||
|Items||Other Equity instrusment||||||||||Minor|Total of|
||Share|preferredSustainab Otherstockle debt|||Capital|Less:Shares in|OtherComprehen|Specialized|Surplus|Commonrisk|Attributable|shareholders’ equity|owners’equity|
||Capital|preferred|||reserves|||reserve|reserves||profit|||
||||Sustainab|Other||stock|sive Income|||provision||||
|||stock||||||||||||
||||le debt|||||||||||
|I.Balance at the end of last|506,521,8||||1,585,130,0||3,212,187.3||70,539,319.||9,166,137.9||2,174,569,5|
|year|49.00||||51.37||5||86||7||45.55|
|Add: Change of accounting||||||||||||||
|policy||||||||||||||
|Correcting of previous||||||||||||||
|errors||||||||||||||
|Merger of entities under||||||||||||||
|common control||||||||||||||
|Other||||||||||||||
|II.Balance at the beginning|506,521,8||||1,585,130,0||3,212,187.3||70,539,319.||9,166,137.9||2,174,569,5|
|of current year|49.00||||51.37||5||86||7||45.55|
|III.Changed in the current|||||||-2,009,434.||||-30,097,851||-32,107,279|
||||||6.38|||||||||
|year|||||||06||||.40||.08|
|（1）Total comprehensive|||||||-2,009,434.||||||-2,009,434.|
|income|||||||06||||||06|
|（II）Investment or||||||||||||||
||||||||||||-30,097,851||-30,097,851|
|decreasing of capital by||||||||||||||
||||||||||||.40||.40|
|owners||||||||||||||
|1．Ordinary Shares investe||||||||||||||
|d by hareholders||||||||||||||
|2．Holders of other equity||||||||||||||
|instruments invested capital||||||||||||||
|3．Amount of shares paid||||||||||||||
|and accounted as owners’||||||||||||||
|equity||||||||||||||
|4．Other||||||||||||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||||
|-|-|-|-|-|-|-|
|（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||6.38||||6.38|
|IV. Balance at the end of|506,521,8|1,585,130,0|1,202,753.2|70,539,319.|-20,931,713|2,142,462,266.47|
|this term|49.00|57.75|9|86|.43||

 Amount in last year
In RMB
|||||
|-|-|-|-|
||Amount in last year|||
|Items||||
||Owner’s equity Attributable to the Parent Company|Minor|Total of|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Other Equity instrusment||||||||||shareholder|owners’|
||||||||Other|||Common||s’ equity|equity|
||share||||Capital|Less: Shares|Comprehen|Specialized|Surplus|risk|Attributable|||
||Capita|preferred|||reserves|in stock||reserve|reserves||profit|||
||||Sustainab|Other|||sive Income|||provision||||
|||stock||||||||||||
||||le debt|||||||||||
|I.Balance at the end of last|506,521,8||||1,585,130,0||33,389,117.||64,403,027.||6,805,203.3||2,196,249,2|
|year|49.00||||51.37||46||10||3||48.26|
|Add: Change of accounting||||||||||||||
|policy||||||||||||||
|Correcting of previous||||||||||||||
|errors||||||||||||||
|Merger of entities under||||||||||||||
|common control||||||||||||||
|Other||||||||||||||
|II.Balance at the beginning|506,521,8||||1,585,130,0||33,389,117.||64,403,027.||6,805,203.3||2,196,249,2|
|of current year|49.00||||51.37||46||10||3||48.26|
|III.Changed in the current|||||||-30,176,930||6,136,292.7||2,360,934.6||-21,679,702|
|year|||||||.11||6||4||.71|
|（1）Total comprehensive|||||||-30,176,930||||8,497,227.4||-21,679,702|
|income|||||||.11||||0||.71|
|（II）Investment or||||||||||||||
|decreasing of capital by||||||||||||||
|owners||||||||||||||
|1．Ordinary Shares investe||||||||||||||
|d by hareholders||||||||||||||
|2．Holders of other equity||||||||||||||
|instruments invested capital||||||||||||||
|3．Allotment to the owners||||||||||||||
|(or shareholders)||||||||||||||
|4．Other||||||||||||||
|(IV) Internal transferring of|||||||||6,136,292.7||-6,136,292.7|||
||||||||||||||0.00|
|owners’ equity|||||||||6||6|||
|1. Capitalizing of capital|||||||||6,136,292.7||-6,136,292.7|||
||||||||||||||0.00|
|reserves (or to capital|||||||||6||6|||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||||
|-|-|-|-|-|-|-|
|shares)|||||||
|2. Capitalizing of surplus|||||||
|reserves (or to capital|||||||
|shares)|||||||
|3．Making up losses by|||||||
|surplus reserves.|||||||
|4. Other|||||||
|(VI )Special reserves|||||||
|1. Provided this year|||||||
|2．Used this term|||||||
|（VII）Other|||||||
|IV. Balance at the end of|||||||
|this term|||||||
|(V) Special reserves|||||||
|1. Provided this year|||||||
|2．Used this term|||||||
|（VI）Other|||||||
|IV. Balance at the end of|506,521,8|1,585,130,0|3,212,187.3|70,539,319.|9,166,137.9|2,174,569,5|
|this term|49.00|51.37|5|86|7|45.55|

 8. Statement of change inowner’s Equity of the Parent Company
Amount in this period
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in this period|||||||||||
|||Other Equity instrusment||||||||||
|Items||||Other|Capital|Less: Shares in|Other|Specialized|Surplus|Attributable|Total of|
||Share cpaital||||||Comprehensiv|||||
|||preferredstock|Sustainable||reserves|stock|e Income|reserve|reserves|profit|owners’ equity|
||||debt|||||||||
|I.Balance at the end of last|506,521,849.||||1,576,547,069.||3,212,187.35||70,539,319.86|398,477,102|2,555,297,528|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||||
|-|-|-|-|-|-|-|
|year|00|58|||.41|20|
|Add: Change of accounting|||||||
|policy|||||||
|Correcting of previous|||||||
|errors|||||||
|Other|||||||
|II.Balance at the beginning|506,521,849.|1,576,547,069.|||398,477,102|2,555,297,528.|
||||3,212,187.35|70,539,319.86|||
|of current year|00|58|||.41|20|
|III.Changed in the current|||||18,884,456.||
|||6.38|-2,009,434.06|||16,875,028.33|
|year|||||01||
|（1）Total comprehensive|||||18,884,456.||
||||-2,009,434.06|||16,875,021.95|
|income|||||01||
|（II）Investment or|||||||
|decreasing of capital by|||||||
|owners|||||||
|1．Ordinary Shares investe|||||||
|d by hareholders|||||||
|2．Holders of other equity i|||||||
|nstruments invested capital|||||||
|3．Allotment to the owners|||||||
|(or shareholders)|||||||
|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|||||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||||
|-|-|-|-|-|-|-|
|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||6.38||||6.38|
|||||||2,572,172,556.53|
|IV. Balance at the end of|506,521,849.|1,576,547,075.|||417,361,558||
||||1,202,753.29|70,539,319.86|||
|this term|00|96|||.42||

 Amount in last year
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year|||||||||||
|||Other Equity instrusment||||||||||
|Items|Share|||Other|Capital|Less: Shares in|Other|Specialized|Surplus|Attributable|Total of|
||||||||Comprehensiv|||||
||Capital|preferredstock|Sustainable||reserves|stock|e Income|reserve|reserves|profit|owners’ equity|
||||debt|||||||||
|I.Balance at the end of last|506,521,849.||||1,576,547,069.|||||343,250,467|2,524,111,530.|
||||||||33,389,117.46||64,403,027.10|||
|year|00||||58|||||.52|66|
|Add: Change of accounting||||||||||||
|policy||||||||||||
|Correcting of previous||||||||||||
|errors||||||||||||
|Other||||||||||||
||506,521,849.||||1,576,547,069.|||||343,250,467|2,524,111,530.|
|II.Balance at the beginning|||||||33,389,117.46||64,403,027.10|||
||00||||58|||||.52|66|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||
|-|-|-|-|-|
|of current year|||||
|III.Changed in the current|||55,226,634.||
||-30,176,930.11|6,136,292.76||31,185,997.54|
|year|||89||
|（1）Total comprehensive|||61,362,927.||
||-30,176,930.11|||31,185,997.54|
|income|||65||
|（II）Investment or|||||
|decreasing of capital by|||||
|owners|||||
|1．Ordinary Shares investe|||||
|d by hareholders|||||
|2．Holders of other equity i|||||
|nstruments invested capital|||||
|3．Allotment to the owners|||||
|(or shareholders)|||||
|4．Other|||||
||||-6,136,292.7||
|（III）Profit allotment||6,136,292.76|||
||||6||
|1.Providing of surplus|||-6,136,292.7||
|||6,136,292.76|||
|reserves|||6||
|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.|||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||||
|-|-|-|-|-|-|-|
|4. Other|||||||
|(V) Special reserves|||||||
|1. Provided this year|||||||
|2．Used this term|||||||
|（VI）Other|||||||
|IV. Balance at the end of|506,521,849.|1,576,547,069.|||398,477,102|2,555,297,528.|
||||3,212,187.35|70,539,319.86|||
|this term|00|58|||.41|20|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 III. Basic Information of the Company
1.Company Profile
(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 has got the corporate business certification of Shensizi No. 440301105031014, Registration address and headquarter address are 6/F,Shenfang Building, 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 24,2016.
2.Scope of consolidated financial statements
(1)As of the end of the reporting period, there are 5 subsidiaries companies included in the consolidated financial statements:Shenzhen Shengbo Optoelectronic Technology Co., Ltd.( Shenzhen Shenfang Import& Export Co., Ltd. and Shengtou (Hongkong) Co.,Ltd. were a wholly owned subsidiary of Shenzhen Shengbo Optoelectronic Technology Co., Ltd.), Shenzhen Lisi Industrial Development Co., Ltd.,Shenzhen Huaqiang Hotel, Shenzhen Shenfang Property Management Co., Ltd. and Shenzhen Beaufity Garments Co., Ltd.
(2)The scope of consolidated financial statements this period did not change.
IV.Basis for the preparation of financial statements
（1）Basis for the preparation
The basis of the financial statements was continuous operation assumption, based on actual transactions, in accordance with the relevant provisions of Accounting Standards for Business Enterprises and in accordance with this Note V, "Significant accounting policies and accounting estimates".
（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: N/A
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.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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 quivalents from the purchase of assets for 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
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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 common business int erests related to:
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016（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 equity investmen ts .
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
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016（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 in amount. The Client Identifies single Judgment criteria or amount standard of material specific
amount or amountcriterial：
amount of 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, the
impairment-related losses shall be recognized according to the Provision method with material specific amount and gap between its present value of future cash flow less than its provision of specific bad debtpreparation：
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
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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%|

 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
□Applicable √Not applicable
(3)Account receivable with non-material specific amount but specific bad debt preparation
Reasons of Withdrawing Individual Bad Debt Provision There is any objective evidence shows that it has been impaired. The impairment-related losses shall be recognized according to the Withdrawing Method of Bad Debt Provision gap between its present value of future cash flow less than its book value.
12.Inventory
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
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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
A non-current asset is classified as held-for-sale if all of the following conditions are satisfied:
1The asset is immediately sellable at its current condition per usual sales term applicable to the type of assets to which itbelongs；
2. the Company's has completed official decision to dispose the asset;
3. the Company has entered into irrevokable sales contract with the purchaser; and
4. the sales will be completed within one year.
Is classified as held for sale and the disposal of non current assets in the group of assets and liabilities, are classifie d as current assets and current liabilities.
Termination of operation to meet one of the following conditions have been disposed of or classified as held for sa le, in the operation and the preparation of the financial statements to be able to differentiate the components alone in the company within:
1. This part of main business represents an independent or a main business area;
2. This part of the proposed disposal plans for a major business independent or a main business area;
3 . This part is just to sell again and made subsidiary.
For the fixed assets held for sale, the company shall adjust the estimated net residual value of the fixed assets in order to make it reflecting the amount after the disposal costs deducted from the fair value, whichdoesn’t exceed the original book value of the fixed assets when the condition of holding for sale is met. The impairment losses of the assets shall be regarded and recorded into the current profits and losses if the original book value is more than the balance of the estimated net residual value after adjusting.
The assets or the disposal group held for sale no longer meet the recognized requirements of the fixed assets held for sale, the company shall terminate the classification of held-for-sale and measure based on the less one between the following amounts: (1) the amounts after adjusted for the assets or the disposal group classified as the book value before the held-for-sale according to the originally confirmed depreciation, amortization or impairment when supposed that have not classified as the held-for-sale. (2) the returned amounts thatcan’t be re-sold. The intangible assets and other non-current assets held for sale shall be treated as per above principles.
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
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 cost method of accounting for long-term equity can exercise control over the investee.
(1)Cost method of accounting for long-term equity investments
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash dividends or profits declared but not yet paid that are included in the price or consideration actually paid upon acquisition of the long-term equity investment, investment income is recognized in the period in accordance with the attributable share of cash dividends or profit distributions declared by the investee.
(2)Equity method of accounting for long-term equity investments
When using the equity method, the initial investment cost of long-term equity investment exceeds the investor's ne t identifiable assets of the fair share of the investment value, do not adjust the initial investment cost of long-term equity investment; the initial investment cost is less than the investee unit share of identifiable net assets at fair val ue, 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
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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 measurement by the cost method
Depreciation or amortization method
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.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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 Building-|Straight-line method||||
|||35 years|4%|2.74%|
|Production|||||
|House and|Straight-line method||||
|Building-Non-||40 years|4%|2.40%|
|Production|||||
||Straight-line method||||
|Decoration of Fixed|||||
|||10 years||10.00%|
|assets|||||
|Machinery and|Straight-line method||||
|||10-14 years|4.00%|9.60%-6.86%|
|equipment|||||
|Transportation|Straight-line method||||
|||8 years|4.00%|12.00%|
|equipment|||||
||Straight-line method||||
|Electronic equipment||8 years|4.00%|12.00%|
|Other equipment|Straight-line method|8 years|4.00%|12.00%|

3．Cognizance evidence and pricing method of financial leasing fixed assets
(1) Recognition Criteria of the Fixed Assets under Financing Lease
The financing lease shall be recognized if the following one or several criteria are met:① the ownership of the leasing assets shall be transferred to the tenant when the expiration of lease term.② the tenant has the option to purchase the leasing assets, and the made purchase price is expected to be far less than the fair value of the leasing assets in the implementation of the option. Thus, it can be reasonably recognized that the tenant will implement the option on the lease date.③ the ownership of assets is not transferred, but the lease term shall be the most of the life of the lease assets.④ the least present value of the lease payment of the tenant and the least present value of the lease receipts on the lease date almost equal to the fair value of the leasing assets on the lease date respectively.⑤ the leasing assets have the special nature, and only the tenant can use if there is no major modifications.
(2) Valuation of Fixed Assets Acquired under Finance Leases: the fixed assets acquired under finance leases shall be bookkept 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.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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.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
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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|Amortization life time（Year）|
|Land use right|50 years|
|Proprietary technology|15 years|
|Software|5 years|

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
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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.
20.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. 21.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.
22.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.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 (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.
23. 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
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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.
24. Revenue
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 agr
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
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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.
25.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 other than that related to income acquired by the company shall be recognized as the government subsidy related to income.
If the grant objects are not explicitly stipulated in the government files, the government subsidy shall be divided into that related to assets and that related to income, and the judgment basis is that:① if the specific purpose of subsidy is stipulated in the government document, the review and necessary change shall be made at the balance sheet date for the proportion of division according to the relative proportion of assets expense amount and expense amount recorded in the budget of the special item.② only general expression is made in the government documents, and the government subsidy related to income should be made for the non-particular items.
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.
26.The Deferred Tax Assets / The deferred Tax Liabilities
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax basis, and the difference of the book value and the tax basis that no confirmation of assets and liabilities but able to confirm the tax basis as per the provisions of tax law. The temporary difference can be classified into the taxable temporary difference and the deductible temporary difference.
2. Recognition Basis of Deferred Tax Assets
For the deductible temporary difference, the deductible loss and the tax payment offset, the company shall recognize the deferred tax assets arising from the future taxable income that obtained to deduce the deductible temporary difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or liabilities in the transaction shall not be recognized: (1) the transaction is not the business combination. (2) the transactiondoesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary difference related to the investment of subsidiaries, cooperative enterprises and joint ventures if the following requirements are simultaneously met: (1) the temporary difference is possible to be reversed in the foreseeable future. (2) the taxable income used to offset the deductible temporary difference is possible to be obtained in the future.
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax basis, and the difference of the book value and the tax basis that no confirmation of assets and liabilities but able to confirm the tax basis as per the provisions of tax law. The temporary difference can be classified into the taxable temporary difference and the deductible temporary difference.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 2. Recognition Basis of Deferred Tax Assets
For the deductible temporary difference, the deductible loss and the tax payment offset, the company shall recognize the deferred tax assets arising from the future taxable income that obtained to deduce the deductible temporary difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or liabilities in the transaction shall not be recognized: (1) the transaction is not the business combination. (2) the transactiondoesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary difference related to the investment of subsidiaries, cooperative enterprises and joint ventures if the following requirements are simultaneously met: (1) the temporary difference is possible to be reversed in the foreseeable future. (2) the taxable income used to offset the deductible temporary difference is possible to be obtained in the future.
3. Recognition Basis of Deferred Tax Liabilities
All the taxable temporary differences shall be recognized as the deferred tax liabilities.
But the company shall not recognize the taxable temporary differences arising from the following transactions as the deferred tax liabilities: (1) the initial recognition of goodwill. (2) the initial recognition of assets or liabilities arising from the transactions with the following features: this transaction is not the business combination, and the transactiondoesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax liabilities for the taxable temporary difference related to the investment of subsidiaries, cooperative enterprises and joint ventures. Except that the following requirements are simultaneously met: (1) the investment enterprise can control the reversal time of the temporary difference. (2) the temporary difference is possible to not be reversed in the foreseeable future.
4. Impairment of Deferred Tax Assets
The company shall review the book value of the deferred tax assets at the balance sheet date. If it is not possible to obtain sufficient taxable income for the reduction of the benefit of the deferred tax assets in the future, the book value of the deferred tax assets shall be deduced. Except that the deferred tax assets and the reduction amount are recorded into theowner’s equity when the original recognition, others shall be recorded into the current income tax expense. The book value of the deferred tax assets reduced can be recovered when sufficient taxable income is possibly obtained.
5. Income Tax Expense
The income tax expense should include the current income tax and the deferred income tax.
Other comprehensive income or the current income tax and the deferred income tax related to the transactions and items directly recorded into thestockholders’ equity, shall be recorded into other comprehensive incomes or thestockholders’ equity, and the book value of goodwill shall be adjusted by the deferred income tax arising from the business combination, but the rest of the current income tax and the deferred income tax expense or income shall be recorded into the current profits and losses.
27.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
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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.
28.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
VI.Taxes of the Company
1. Main taxes categories and tax rate
||||
|-|-|-|
|Taxes|Tax references|Applicable tax rates|
||Selling goods or providing taxable||
|VAT||3%、5%、6%、17%|
||labor services||
|Business tax.|The taxable tumover|5%|
|City construction tax|Turnover tax to be paid allowances|7%|
|Business income tax|Taxable income|15%、25%|

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 2013 ,High-tech and enterprise certificate No.: GF201344200044 ,The certificate is valid for three years,From August 14, 2013 to August 13, 2016, The enterprise income tax rate of this year is15%.
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Cash at hand|12,995.11|8,872.71|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|Bank deposit|602,045,962.06|750,353,139.33|
|Other monetary funds|63,230,729.62|1,952,859.49|
|Total|665,289,686.79|752,314,871.53|
|Including : The total amount of deposit|||
||1,746,567.52|31,258,353.11|
|abroad|||

 2.Derivative financial assets
□ Applicable√ Not applicable
3.Note receivables
1. Classification Note receivable
In RMB
||||
|-|-|-|
||Year-end balance|Year-beginning balance|
|Items|||
|Bank acceptance|33,652,411.33|18,841,745.16|
|Total|33,652,411.33|18,841,745.16|

 2.Notess dedoresment or discount and undue on balance sheet date
In RMB
||||
|-|-|-|
|Items|Amount derecognition at period –end|Amount nt derecognition at period-end|
|Bank acceptance|45,535,034.06|28,800,228.87|
|Total|45,535,034.06|28,800,228.87|

 4. Account receivable
1.Classification accojunt receivables.
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year-beginning|||||
||Book Balance||Bad debt provision|||Book Balance||Bad debt provision|||
|Classification|||||Book||||||
|||||||||||Book value|
||Amount|Proportio|Amount|Proportio|value|Amount|Proportio|Amount|Proportion(||
|||n(%)||n(%)|||n(%)||%)||
|Accounts receivable|||||||||||
|of individual|||||||||||
|significance and|6,373,03||4,035,78||2,337,254|6,373,0||4,035,782||2,337,254.0|
|||2.86%||63.33%|||3.16%||63.33%||
|subject to individual|6.66||2.60||.06|36.66||.60||6|
|impairment|||||||||||
|assessment|||||||||||
|Accounts receivable|||||||||||
|subjecttoimpairme|||||||||||
|nt assessment by|209,988,||11,037,4||198,950,7|189,029||9,776,480||179,253,06|
|||94.33%||5.26%|||93.74%||5.17%||
|credit risk|227.91||66.06||61.85|,540.68||.20||0.48|
|characteristics of a|||||||||||
|portfolio|||||||||||
|Accounts receivable|6,259,76||5,083,70||1,176,057|6,259,7||5,083,708||1,176,057.5|
|||2.81%||81.21%|||3.10%||81.21%||
|of individual|5.85||8.34||.51|65.85||.34||1|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
|insignificance but||||||||
|subject ot individual||||||||
|impairment||||||||
|assessment||||||||
|Total|222,621,|20,156,9|202,464,073.42|201,662|100.00%|18,895,97|182,766,372.05|
||030.42|57.00||,343.19||1.14||

 Accounts receivable of individual significance and subject to individual impairment assessment.
√ applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
||Amount in year-end||||
|Debtor|||||
||Account receivable|Bad debt provision|Rate of alloance(%)|Reason for allowance|
|||||It has been included in|
|Dongguan Fair LCD Co.,||||the list of national courts|
||1,698,528.55|1,698,528.55|100.00%||
|Ltd.||||dishonest debtor, unlikely|
|||||to recover.|
|||||Beyond the credit period|
|Guangdong Ruili Baolai|||||
||1,418,965.36|709,482.68|50.00%|for a long time, uncertain|
|Technology Co., Ltd.|||||
|||||recovered.|
|||||Beyond the credit period|
|Dongguan Yaxing|||||
||3,255,542.75|1,627,771.37|50.00%|for a long time, uncertain|
|Semiconductor Co., Ltd.|||||
|||||recovered.|
|Total|6,373,036.66|4,035,782.60|--|--|

√ Applicable □ Not applicable
In RMB
|||||
|-|-|-|-|
||Balance in year-end|||
|Aging||||
||Account receivable|Bad debt provision|Rate of alloance(%)|
|Within item 1 year||||
||204,705,684.10|10,235,284.21|5.00%|
|1-2 years|4,531,250.65|453,125.07|10.00%|
|2-3 years|132,948.96|39,884.69|30.00%|
|Over years|618,344.20|309,172.10|50.00%|
|Total|209,988,227.91|11,037,466.06||

Receivable account in Group on which bad debt provisions were provided on percentagebasis：
□Applicable√Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB 1,272,115.08 ; The acmount collected or switches back amounting to RMB 11,129.22.
（3）The ending balance of receivable owed by the imputation of the top five parties
||||||
|-|-|-|-|-|
|Name|Nature|Balance inyear-end|Aging|Proportion(%)|
|First|Goods|75,605,593.52|Within 1 year|33.96|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||
|-|-|-|-|-|
|Second|Goods|18,381,380.72|Within 1 year|8.26|
|Third|Goods|9,441,552.59|Within 1 year|4.24|
|Fourth|Goods|8,143,745.25|Within 1 year|3.66|
|Fifth|Goods|6,972,576.91|Within 1 year|3.13|
|Total||118,544,848.99||53.25|

5.Prepayments
1．Disclosure by age
In RMB
||||||
|-|-|-|-|-|
||Balance in year-end||Balance in year-begin||
|Aging|||||
||Amount|Proportion（%）|Amount|Proportion（%）|
|Within 1 year|26,898,026.98|89.51%|5,027,361.20|64.01%|
|1-2 years|1,566,890.99|5.21%|1,033,416.99|13.16%|
|2-3 years|1,554,890.00|5.17%|1,754,880.00|22.34%|
|Over 3 years|30,546.00|0.10%|38,160.00|0.49%|
|Total|30,050,353.97|--|7,853,818.19|--|

（2）The ending balance of Prepayments owed by the imputation of the top five parties
||||
|-|-|-|
|Name|Balance in year-end|Proportion|
|First|7,266,310.97|24.18%|
|Second|4,280,272.24|14.24%|
|Third|2,000,000.00|6.66%|
|Fourth|1,584,298.97|5.27%|
|Fifth|1,551,280.38|5.16%|
|Total|16,682,162.56|55.51%|

6.Interest receivable
1.Category of interest receivable
In RMB
||||
|-|-|-|
|Items|Amount in year-end|Amount in year-beginng|
|Fixed deposit interest|12,904,469.13|16,472,409.43|
|Structure deposit interest|10,826,457.00|13,826,529.37|
|Total|23,730,926.13|30,298,938.80|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 7.Other receivable
1．Category of Other receivable
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year-beginng|||||
||Book Balance||Bad debt provision|||Book Balance||Bad debt provision|||
|Classification|||||Book||||||
||Amount|Proportio|Amount|Proportio||Amount|Proportio|Amount|Proportion(|Book value|
||||||value||||||
|||n(%)||n(%)|||n(%)||%)||
|Other accounts|||||||||||
|receivable of|||||||||||
|individual|||||||||||
||11,981,4||11,981,4|||11,981,||11,981,46|||
|significance and||14.53%||100.00%|0.00||19.67%||100.00%||
|subject to individual|64.60||64.60|||464.60||4.60|||
|impairment|||||||||||
|assessment|||||||||||
|Other accounts|||||||||||
|receivable subject|||||||||||
|to impairment|||||||||||
||69,990,1||5,529,21||64,460,89|48,425,||3,292,063||45,133,672.|
|assessment by||84.85%||7.90%|||79.49%||6.80%||
|credit risk|12.41||8.88||3.53|735.21||.11||10|
|characteristics of a|||||||||||
|portfolio|||||||||||
|Other accounts|||||||||||
|receivable of|||||||||||
|individual|||||||||||
||511,820.||511,820.|||511,820||511,820.7|||
|insignificance but||0.62%||100.00%|0.00||0.84%||100.00%||
|subject to individual|77||77|||.77||7|||
|impairment|||||||||||
|assessment|||||||||||
|Total|82,483,3|100.00%|18,022,5||64,460,893.53|60,919,|100.00%|15,785,34||45,133,672.10|
||97.78||04.25|||020.58||8.48|||

 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||||
|Debtor|||||
||Other account receivable|Bad debt provision|Rate of alloance(%)|Reason for allowance|
|Jiangxi Xuanli String||||No executable property,|
||11,389,044.60|11,389,044.60|100.00%||
|Co., Ltd.||||unlikely to recover|
|Shenzhen Tianlong||||Has been|
|Induatry& Trade Co.,|592,420.00|592,420.00|100.00%|conceled,unlikely to|
|Ltd.||||recover|
|Total|11,981,464.60|11,981,464.60|--|--|

Other receivable accounts in Group on which bad debt provisions were provided on age analyzebasis：
√ Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Amount in year-end|||
|Aging||||
||Other receivable|Bad debt provision|Withdrawal proportion|
|Within item 1 year||||
|Subtotal within 1 year|52,981,455.2|2 2,649,072.76|5.00%|
|1-2 years|12,897,733.6|3 1,289,773.36|10.00%|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
|||||
|-|-|-|-|
|2-3 years|2,325,445.12|697,633.54|30.00%|
|Over 3 years|1,785,478.44|892,739.22|50.00%|
|Total|69,990,112.41|5,529,218.88||

Other receivable account in Group on which bad debt provisions were provided on percentagebasis：
□ Applicable√Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in theportfolio：
□ Applicable√Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was 1,968,711.63, the acount collected or switches back amounting to RMB
907,806.16.
This period is important for the return or recovery of bad debts
In RMB
||||
|-|-|-|
|Name|Amount|Way|
|Shenzhen State Taxation Bureau|907,806.16|Export rebate|
|Total|907,806.16|--|

（3）Other accounts receivable classified by the nature of accounts
In RMB
||||
|-|-|-|
||Year-end balance|Year-beginning balance|
|Category|||
|The equity transfer|2,276,015.00|2,276,015.00|
|Export rebate|17,391,551.55|37,916,465.75|
|Unit account|15,804,560.33|16,318,999.87|
|Deposit|39,043,603.65|2,024,236.32|
|Reserve fund and staff loans|1,125,651.37|968,214.01|
|Other|6,842,015.88|1,415,089.63|
|Total|82,483,397.78|60,919,020.58|

（4）Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party In RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion of the||
|||||total year end||
||||||Bad debt provision|
|Name|Nature|Closing balance|Aging|balance of the||
||||||of year-end balance|
|||||accounts||
|||||receivable(%)||
||||||1,952,180.18|
|Second|Export rebate|17,391,551.55|Within 1 year|21.08%|869,577.58|
|Third|Unit account|11,389,044.60|Over 3 years|13.81%|11,389,044.60|
||Unit account|1,800,000.00|Within 1 year|2.18%|90,000.00|
|Fourth||1,800,000.00|2-3 years|2.18%|540,000.00|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
|||||||
|-|-|-|-|-|-|
|Fifth|Unit account|592,420.00|Over 3 years|0.72%|592,420.00|
|Total|--|72,016,619.80|--||15,433,222.36|

 8.Inventories
（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|130,626,723.11|11,252,693.29|119,374,029.82|150,409,810.60|14,406,278.95|136,003,531.65|
|Processing|||||||
||9,098,633.93|652,923.73|8,445,710.20|6,871,382.66|493,094.77|6,378,287.89|
|products|||||||
|Finished product|204,781,887.30|39,018,312.81|165,763,574.49|219,207,543.28|52,814,317.94|166,393,225.34|
|Total|344,507,244.34|50,923,929.83|293,583,314.51|376,488,736.54|67,713,691.66|308,775,044.88|

（2）Inventory Impairment provision
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Increased in current period||Decreased in current period|||
||Year-beginning||||||
|Items||||||Year-end balance|
||balance|Provision|Other|Transferred back|Other||
|Raw materials|14,406,278.95|||3,153,585.66||11,252,693.29|
|Processing|493,094.77|||||652,923.73|
|||159,828.96|||||
|products|||||||
|Finished product|52,814,317.94|140,265.18||13,936,270.31||39,018,312.81|
|Total|67,713,691.66|300,094.14||17,089,855.97||50,923,929.83|

 9.Other current assets
In RMB
||||
|-|-|-|
||Year-end balance|Year-beginning balance|
|Items|||
|Structural Deposit|368,000,000.00|460,000,000.00|
|After the deduction of input VAT|53,553,675.47|53,553,675.47|
|Total|421,553,675.47|513,553,675.47|

 10.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|||||||
||76,944,741.58|36,689,988.51|40,254,753.0|7 79,931,512.57|36,689,988.51|43,241,524.06|
|instruments|||||||
|Measured by fair value|7,067,705.61||7,067,705.6|1 10,054,476.60||10,054,476.60|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||||
|-|-|-|-|-|-|-|
|Measured by cost|69,877,035.97|36,689,988.51|33,187,047.46|69,877,035.97|36,689,988.51|33,187,047.46|
|Total|76,944,741.58|36,689,988.51|40,254,753.07|79,931,512.57|36,689,988.51|43,241,524.06|

 (2)Available-for-sale financial assets measured by fair value at the period-end
In RMB
|||||
|-|-|-|-|
|Type of financial assets|Equity instrument|Debt instrument||
||||Total|
|available for sale|available for sale|available for sale||
|Fair value at the end|7,067,705.61||7,067,705.61|
|Changes in the amount of||||
|the cumulative fair value||||
||2,240,078.24||2,240,078.24|
|recognized in other com||||
|prehensive 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|
|Investee|Period-beg|||Period-beg||||proportion|the|
|||Increase|||Increased|Decreased|Period-end|||
||in|||in||||among the|reporting|
|||||||||investees|period|
|Shenzhen||||||||||
|Jintian||||||||||
||14,831,681||14,831,681|14,831,681|||14,831,681|||
|Industry||||||||3.68%||
|（Group）|.50||.50|.50|||.50|||
|Co., Ltd.||||||||||
|Shenzhen||||||||||
|Jiafeng|16,800,000||16,800,000|16,800,000|||16,800,000|||
|||||||||10.80%||
|Textile|.00||.00|.00|||.00|||
|Co., ltd.||||||||||
|Shenzhen||||||||||
|Guanhua||||||||||
|Prnting &|5,491,288.||5,491,288.|5,058,307.|||5,058,307.|45.00%||
||71||71|01|||01|||
|dyeing||||||||||
|Co., Ltd.||||||||||
|Shenzhen||||||||||
|Union||||||||||
|Developm|2,600,000.||2,600,000.|||||2.87%||
||00||00|||||||
|ent Group||||||||||
|Co., Ltd||||||||||
|Shenzhen||||||||||
|Xiangjiang||||||||||
||160,000.00||160,000.00|||||20.00%||
|Trade Co.,||||||||||
|Ltd.||||||||||
|Shenzhen||||||||||
||524,000.00||524,000.00|||||20.00%|80,000.00|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||||
|-|-|-|-|-|-|-|
|Xinfang|||||||
|Knitting|||||||
|Co., Ltd.|||||||
|Shenzhen|||||||
|Dailisi|||||||
||2,559,856.|2,559,856.|||||
||||||30.00%||
|Knitting|26|26|||||
|Co., Ltd.|||||||
|Anhui|||||||
|Huapeng|||||||
||25,410,209|25,410,209|||||
||||||50.00%||
|Textile|.50|.50|||||
|Co., Ltd.|||||||
|Shenzhen|||||||
|South|1,500,000.|1,500,000.|||||
||||||9.84%||
|Textile|00|00|||||
|Co., Ltd.|||||||
||69,877,035|69,877,035|36,689,988|36,689,988|||
|Total|||||--|80,000.00|
||.97|.97|.51|.51|||

4.Changes of the impairment of the available-for-sale financial assets during the reporting period
In RMB
|||||
|-|-|-|-|
||Avaliable for sale equity|Avaliableforsale debts||
|Category|||Total|
||instruments|instruments||
|Impairment amount at||||
||36,689,988.51||36,689,988.51|
|the beginning period||||
|Impairment amount at||||
||36,689,988.51||36,689,988.51|
|the end of period||||

5. Fair value of equity instrument available for sale sharply declined or other-than-temporary declined at period-end without depreciation reserves accrual
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Decline range|Falling time（Month）|||
|Items|Investment cost|Fair value|||Amount|Reason|

11. Long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase/decrease|||||||||Closingbalance|
||||||Adjustme|||||||
||||||||Cash|Withdraw||||
|Investees|Opening|Add|Investme|Gains/los|nt of|Chinges|bonus or|al of||Closing|of|
||balance|investmen|nt|s of|other|of other|profits|impairme|Other|balance|impairme|
|||t|decreased|Investme|comprehe|eqiuty|announce|nt|||ntprovision|
|||||nt|nsive||d to issue|provision||||
||||||income|||||||
|I. Joint venture||||||||||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||||
|-|-|-|-|-|-|-|
|Shenzhen|||||||
|Haohao|||||||
||4,397,840|347,953.3|||4,745,794||
|Property|||||||
||.88|5|||.23||
|Leasing|||||||
|Co., Ltd.|||||||
|Shenzhen|||||||
|Xieli|||||||
||4,061,958|181,746.4|||4,243,705|266,654.9|
|Automobi|||||||
||.96|8|||.44|9|
|le Co.,|||||||
|Ltd.|||||||
||8,459,799|529,699.8|||8,989,499|266,654.9|
|Subtotal|||||||
||.84|3|||.67|9|
|2. Affiliated Company|||||||
|Shenzhen|||||||
|Changlian|||||||
|fa|||||||
||1,871,377||||1,938,153||
|||66,776.03|||||
|Printing|.09||||.12||
|& dyeing|||||||
|Company|||||||
|Jordan|||||||
|Garment|3,384,014|-557,748.|67,765.60||2,894,031||
||.49|24|||.85||
|Factory|||||||
|Hongkon|||||||
|g Yehui|||||||
|Internatio|9,430,732|673,270.7|162,878.5|-211,450.|10,055,43||
||.63|2|8|51|1.42||
|nal Co.,|||||||
|Ltd.|||||||
|Subtotal|14,686,12|182,298.5|230,644.1|-211,450.|14,887,61||
||4.21|1|8|51|6.39||
||23,145,92|711,998.3|230,644.1|-211,450.|23,877,11|266,654.9|
|Total|||||||
||4.05|4|8|51|6.06|9|

 Other notes
Shenzhen Xieli Automobile Co., Ltd. Business license has been revoked the business sector. Shareholders agreed to dissolve and liquidate the Company in accordance with the relevant provisions. Currently the company is under liquidation.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 12.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|||||
||252,285,892.54|||252,285,892.54|
|period-beginning|||||
|2.Increase in the current|||||
||52,051,000.00|||52,051,000.00|
|period|||||
|(1) Purchase|||||
|（ 2 ） Inventory\Fixed|||||
|assets\ Transferred from|52,051,000.00|||52,051,000.00|
|construction in progress|||||
|(3)Increased of|||||
|Enterprise Combination|||||
|3.Decreased amount of|||||
|the period|||||
|（1）Dispose|||||
|（2）Other out|||||
|4. Balance at period-end|304,336,892.54|||304,336,892.54|
|II.Accumulated|||||
|amortization|||||
|1.Opening balance|117,895,929.49|||117,895,929.49|
|2.Increased amount ofthe|||||
||3,504,535.36|||3,504,535.36|
|period|||||
|(1) Withdrawal|3,504,535.36|||3,504,535.36|
|3.Decreased amount of|||||
|the period|||||
|（1）Dispose|||||
|（2）Other out|||||
|4. Balance at|||||
||121,400,464.85|||121,400,464.85|
|period-end|||||
|III. Impairment provision|||||
|1. Balance at|||||
|period-beginning|||||
|2.Increased amount of|||||
|the period|||||
|(1) Withdrawal|||||
|3.Decreased amount of|||||
|the period|||||
|（1）Dispose|||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|（2）Other out|||
|4. Balance at period-end|||
|IV.Book value|||
|1.Book value at period||182,936,427.69|
||182,936,427.69||
|-end|||
|2.Book value at||134,389,963.05|
||134,389,963.05||
|period-beginning|||

（2）Investment real estate by fair value
□ Applicable √ Not applicable
（3）Investment real estate without certificate of ownership
In RMB
||||
|-|-|-|
|Items|Book value|Reason for certificate not granted|
|||Need to improve the relevant accreditation|
|Guanhua Building|52,021,000.00||
|||information|

13. Fixed assets
（1）Fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
|||Machinery||||
|Items|Houses & buildings||Transportations|Other|Total|
|||eqiupment||||
|I. Original price||||||
|1.Opening||||||
||490,052,012.48|652,172,073.90|3,691,157.72|19,463,252.46|1,165,378,496.56|
|balance||||||
|2.Increased amount||||||
||2,759,267.00|155,128.22||1,004,829.75|3,919,224.97|
|ofthe period||||||
|(1) Purchase||||||
||2,759,267.00|155,128.22||1,004,829.75|3,919,224.97|
|(2) Transferred fro||||||
|m construc||||||
|tion in pro||||||
|gress||||||
|(3)Increased of||||||
|Enterprise||||||
|Combination||||||
|3. Decrease in the||||||
|||||168,760.34|168,760.34|
|current period||||||
|（1）Disposal||||168,760.34|168,760.34|
|4. Balance at||||||
|period-end||||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
|||||||
|-|-|-|-|-|-|
|II.Accumulated||||||
|amortization||||||
|1. Balance at||||||
||84,904,035.93|275,623,640.07|2,728,973.22|12,102,360.18|375,359,009.40|
|period-beginning||||||
|2. Increase in the||||||
||7,708,745.49|28,959,252.95|146,769.36|775,695.40|37,590,463.20|
|current period||||||
|(1) Withdrawal|7,708,745.49|28,959,252.95|146,769.36|775,695.40|37,590,463.20|
|3. Decrease in the||||||
||44,557.28|||144,019.41|188,576.69|
|current period||||||
|（1）Disposal|44,557.28|||144,019.41|188,576.69|
|4. Balance at||||||
|period-end||||||
|III. Impairment||||||
|provision||||||
|1. Balance at||||||
|period-beginning||||||
|2.Increased||||||
|amount of the period||||||
|(1) Withdrawal||||||
|3. Decrease in the||||||
|current period||||||
|（1）Dispose||||||
|4. Balance at||||||
|period-end||||||
|IV.Book value||||||
|1.Book value at||||||
||400,243,055.34|347,744,309.10|815,415.14|7,565,285.70|756,368,065.28|
|period -end||||||
|2.Book value at||||||
||405,147,976.55|376,548,433.83|962,184.50|7,360,892.28|790,019,487.16|
|period-beginning||||||

2.Fixed assets with un-completed property certificates
In RMB
||||
|-|-|-|
|Items|Book Value|Reasons for un-completed certificate|
|TFT-LCD polarizing film project phase I1 fixed||Company has submitted materials on 7|
||296,998,079.44||
|||June 2016，July 23 began publicity.|
|assets of houses and buildings|||

 14.Project under construction
（1）Project under construction
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items|Book balance|Provision for|Book Net value|Book balance|Provision for|Book Net value|
|||devaluation|||devaluation||
|TFT-LCD|||||||
||79,066,981.68||79,066,981.68|36,212,078.79||36,212,078.79|
|polarizing film II|||||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||
|-|-|-|-|-|
|project (6 line)|||||
|GuanhuaBuilding Project|||||
||||39,004,527.58|39,004,527.58|
|Other|||586,980.33|586,980.33|
|Total|79,066,981.68|79,066,981.68|75,803,586.70|75,803,586.70|

（2）Changes of significant construction in progress
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Including：|||
||||||||||Capitalis||||
|||Amount||Transferr|||||ation of|Current|Capitalis||
|Name|Budget|at yearbeginnin|Increaseat this|ed to|Other|Balancein|Proporti|Progress|interest|amount|ation of|Source|
|||||fixed|decrease||on(%)|of work|accumul|of|interest|of funds|
|||g|period|assets||year-end|||ated|capitaliz|ratio（%)||
||||||||||balance|ation ofinterest|||
|TFT-LC|||||||||||||
|D|||||||||||||
|polarizin|700,340,|36,212,0|42,854,9|||79,066,9||||||Share|
||||||||11.29%|11.29%|||||
|g film II|000.00|78.79|02.89|||81.68||||||Capital|
|project|||||||||||||
|(6 line)|||||||||||||
||700,340,|36,212,0|42,854,9|||79,066,9|||||||
|Total|||||||--|--||||--|
||000.00|78.79|02.89|||81.68|||||||

15.Liquidation of fixed assets
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Counterfeit Detector and Longhua solar|||
||3,810.00|0.00|
|water heater cleanup scrapped|||
|Total|3,810.00||

16.Intangible assets
（1）List of intangible assets
In RMB
||||||
|-|-|-|-|-|
||||Non-patent||
|Items|Land use right|Patent||Total|
||||Technology||
|I. Original price|||||
|1.Opening|||||
||48,765,130.50|11,825,200.00|1,938,280.00|62,528,610.50|
|balance|||||
|2.Increased|||||
|amount ofthe|||||
|period|||||
|(1) Purchase|||||
||||15,800.00|15,800.00|
|(2)Internal|||||
|Development|||||
|(3)Increased of|||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||
|-|-|-|-|-|
|Enterprise|||||
|Combination|||||
|3.Decreased amount|||||
|of the period|||||
|（1）Disposal|||||
|4. Balance at|||||
||48,765,130.50|11,825,200.00|1,954,080.00|62,544,410.50|
|period-end|||||
|II.Accumulated|||||
|amortization|||||
|1. Balance at|||||
||9,383,309.73|11,825,200.00|693,164.43|21,901,674.16|
|period-beginning|||||
|2. Increase in the|||||
|current period|||||
|(1) Withdrawal|468,269.64||121,405.91|589,675.55|
|3.Decreased amount|||||
|of the period|||||
|（1）Disposal|||||
|4. Balance at|||||
||9,851,579.37|11,825,200.00|814,570.34|22,491,349.71|
|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|||||
||38,913,551.13||1,139,509.66|40,053,060.79|
|period -end|||||
|2.Book value at|||||
||39,381,820.77||1,245,115.57|40,626,936.34|
|period-beginning|||||

17.Goodwill
（1）Original book value of goodwill
In RMB
||||||
|-|-|-|-|-|
||Amount at|Increase in the current period|Decrease in the current period|Amount at|
|Name|||||
||period-beginning|||period-end|
|Shenzhen Beauty|||||
||2,167,341.21|||2,167,341.21|
|Century Garment|||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|Co., Ltd.|||
|Shenzhen|||
|Shenfang Import|||
||82,246.61|82,246.61|
|and Export Co.,|||
|Ltd.|||
|Shenzhen|||
|Shengbo|||
|Ophotoelectric|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 thisperiod||
||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|||||
|Shengbo|||||
|Ophotoelectric|9,614,758.55|||9,614,758.55|
|Technology Co.,|||||
|Ltd|||||
|Total|11,864,346.37|||11,864,346.37|

 18.Long term amortize expenses
In RMB
|||||||
|-|-|-|-|-|-|
||||Amortized expenses|||
|Items||Increase in this||Other loss|Balance in year-end|
||Balance in year-begin|||||
|||period||||
|Renovation fee|349,029.34||117,500.33||231,529.01|
|Other|284,512.16|377,760.00|36,103.68||626,168.48|
|Total|633,541.50|377,760.00|153,604.01||857,697.49|

 19.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|||||
||8,649,341.96|2,162,335.49|7,334,802.71|1,833,700.67|
|reserves|||||
|Unattained internal sales|1,363,301.68|340,825.42|2,858,879.80|428,831.98|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||
|-|-|-|-|-|
|profits|||||
|Total|10,012,643.64|2,503,160.91|10,193,682.51|2,262,532.65|

 (2)Details of the un-recognized deferred income tax liabilities
In RMB
||||||
|-|-|-|-|-|
||Balance in year-end||Balance in year-begin||
|Items|||||
||Temporarily Deductable|Deferred Income Tax|Temporarily Deductable|Deferred Income Tax|
||or Taxable Difference|liabilities|or Taxable Difference|liabilities|
|Changes in fair value of|||||
|financial assets available|||1,113,878.29|278,469.57|
|for sale|||||
|Stock equity disposition|||||
|of the temporary taxable|||||
||42,291,900.69|10,572,975.17|42,291,900.69|10,572,975.17|
|difference and the|||||
|taxable income|||||
|Total|42,291,900.69|10,572,975.17|43,405,778.98|10,851,444.74|

 (3)Details of un-recognized deferred income tax assets
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||2,503,160.91||2,262,532.65|
|assets|||||
|Deferred income||10,572,975.18||10,851,444.74|
|liabilities|||||

（4）Details of unrecognied deferred income tax assets
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Deductible temporary difference|71,675,618.95|85,512,740.17|
|Deductible loss|544,272,752.97|495,605,796.60|
|Total|615,948,371.92|581,118,536.77|

 (5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years In RMB
|||||
|-|-|-|-|
|Year|Balance in year-end|Balance in year-begin|Remark|
|2017|134,292,559.16|134,292,559.16||
|2018|129,226,944.33|129,226,944.33||
|2019|148,095,898.11|148,095,898.11||
|2020|83,990,395.00|83,990,395.00||
|2021|48,666,956.37|||
|Total|544,272,752.97|495,605,796.60|--|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 20. Short-term loan
（1）Categories of short-term loans
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-Beinning|
|Credit loans|26,220,880.25|53,866,521.87|
|Total|26,220,880.25|53,866,521.87|

 21.Account payable
（1）Account payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Within 1 year|186,167,237.39|221,732,534.76|
|1-2 years|289,614.18|339,044.59|
|2-3 years|64,917.00|64,917.00|
|3-4 years|187,643.43|187,643.43|
|4-5 years|45,765.20|38,046.00|
|Over 5 years|5,121,527.58|5,166,622.82|
|Total|191,876,704.78|227,528,808.60|

（2）Significant accounts payable that aged over one year
In RMB
||||
|-|-|-|
|||The reason for not repaid or carried forwar|
|Items|Balance in year-end||
|||d|
|Will Taco Corporation|5,089,267.83|Quality dispute|
|Total|5,089,267.83|--|

22. Advance account
（1）Advance account
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Within 1 year|43,718,167.18|27,505,005.53|
|1-2 years|104,763.00|45,161.00|
|2-3 years|10,224.00|10,224.00|
|3-4 years|||
|4-5 years|||
|Over 5 years|639,024.58|639,024.58|
|Total|44,472,178.76|28,199,415.11|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 23.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 employee|||||
||34,557,822.40|53,140,531.56|67,607,118.08|20,091,235.88|
|benefits|||||
|II. Post-employment|||||
||750,000.00|4,741,238.89|5,415,888.69|75,350.20|
|benefits|||||
|III. Termination benefit||57,400.00|57,400.00||
|Total|35,307,822.40|57,939,170.45|73,080,406.77|20,166,586.08|

（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,|||||
||32,992,129.09|45,232,258.41|59,805,727.35|18,418,660.15|
|allowances and subsidies|||||
|2.Employee welfare||3,054,018.97|3,054,018.97||
|3. Social insurance|||||
|||848,505.26|848,505.26||
|premiums|||||
|Including：Medical|||||
|||697,095.73|697,095.73||
|insurance|||||
|Work injury insurance||48,052.73|48,052.73||
|Maternity insurance||103,356.80|103,356.80||
|4. Public reserves for|||||
|||2,910,218.16|2,910,218.16||
|housing|||||
|5.Union funds and staff|||||
||1,565,693.31|1,095,530.76|988,648.34|1,672,575.73|
|education fee|||||
|Total|34,557,822.40|53,140,531.56|67,607,118.08|20,091,235.88|

（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|||||
|||3,895,001.94|3,895,001.94||
|insurance premiums|||||
|2.Unemployment|||||
|||126,400.07|126,400.07||
|insurance|||||
|3. Annuity payment|750,000.00|719,836.88|1,394,486.68|75,350.20|
|Total|750,000.00|4,741,238.89|5,415,888.69|75,350.20|

 24.Tax Payable
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|VAT|32,808,483.37|135,460.12|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|Business Tax|18,017.11|510,707.45|
|Enterprise Income tax|3,871,296.55|12,570,466.83|
|Individual Income tax|876,296.51|480,334.74|
|City Construction tax|30,580.16|31,836.84|
|House property Tax|966,223.72|750,607.19|
|Education surcharge|22,066.84|22,964.43|
|Other|489,717.76|180,265.49|
|Total|39,082,682.02|14,682,643.09|

 25.Interest Payable
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Interest on long-term borrowings payable|41,225,070.20|39,000,625.75|
|Interest on short-term borrowings|78,604.28|88,262.21|
|Total|41,303,674.48|39,088,887.96|

 26.Other payable
（1）Disclosure by nature
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Engineering Equipment fund|47,560,714.48|59,222,758.80|
|Unit account|25,818,977.41|24,819,916.41|
|Deposit|23,947,245.97|19,151,806.04|
|Drawing expenses|2,831,312.63|2,879,640.37|
|Other|26,765,100.44|19,701,602.18|
|Total|126,923,350.93|125,775,723.80|

 27.Non-currentliabilitiesdue within 1 year
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Long-term borrowings due with in 1year|0.00|40,000,000.00|
|Total||40,000,000.00|

 28.Long-term borrowings
（1）Long-term term borrowings
In rmb
||||
|-|-|-|
|Items|At end of term|At beginning of term|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|Credit borrowings|120,000,000.00|120,000,000.00|
|Total|120,000,000.00|120,000,000.00|

 29.Deferred income
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Balance in|Increase at this|Decrease at this|Balance in year-end|Reason|
||year-begin|period|period|||
|Govemment Subsidy|99,524,165.58||2,165,711.40|97,358,454.18||
|Total|99,524,165.58||2,165,711.40|97,358,454.18|--|

Details of govemmentsubsidy：
In RMB
||||||||
|-|-|-|-|-|-|-|
||||The||||
|||New grants|||||
||Balance in||non-operating||Balance in|Income related to|
|Items||amount of this||Other changed|||
||year-begin||revenue amount||year-end|assets|
|||period|||||
||||of this period||||
|Textile special|||||||
||1,000,000.02||||1,000,000.02|Related to assets|
|funds|||||||
|High-tech|||||||
|Industrialization|||||||
||800,000.00||100,000.00||700,000.00|Related to assets|
|demonstration|||||||
|projects|||||||
|National grant|||||||
|fundsfor new flat|||||||
||4,000,000.00||500,000.00||3,500,000.00|Related to assets|
|panel display|||||||
|industry|||||||
|Borrowing|||||||
||967,777.64||120,972.24||846,805.40|Related to assets|
|discount|||||||
|Grant funds for|||||||
|TFT-LCD|||||||
||8,233,333.34||649,999.98||7,583,333.36|Related to assets|
|polarizer industry|||||||
|project|||||||
|Grant funds for|||||||
|TFT-LCD|||||||
|polarizer narrow|3,500,000.00||250,000.02||3,249,999.98|Related to assets|
|line (line 5)|||||||
|project|||||||
|Purchase of|||||||
|importedequipme|1,202,287.38||87,545.10||1,114,742.28|Related to assets|
|nt and technology|||||||
|Innovation and|||||||
|venture capital|||||||
||350,000.00||25,000.02||324,999.98|Related to assets|
|for TFT-LCD|||||||
|polarier project|||||||
|Shenzzhen|||||||
|Engineering|||||||
|laboratory|||||||
|polarizing|462,500.00||25,000.02||437,499.98|Related to assets|
|material and|||||||
|technical|||||||
|engineeting|||||||
|Shenzhen|||||||
||4,625,000.00||250,000.02||4,374,999.98|Related to assets|
|polarizingmateria|||||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||
|-|-|-|-|-|
|l and technical|||||
|engineering|||||
|Capital funding|||||
|for Technology|2,775,000.00|150,000.00|2,625,000.00|Related to assets|
|Center|||||
|Subsidy funds to|||||
|support the|||||
||100,716.70|7,194.00|93,522.70|Related to assets|
|introduction of a|||||
|dvanced technolo|||||
|gy|||||
|Grant funds for|||||
|TFT-LCD|||||
|polarizer narrow|15,000,000.00||15,000,000.00|Related to assets|
|line (line 6)|||||
|project|||||
|Grant funds for|||||
|TFT-LCD|||||
|polarizer narrow|10,000,000.00||10,000,000.00|Related to assets|
|line (line 6)|||||
|project|||||
|Grant funds for|||||
|TFT-LCD|||||
|polarizer narrow|500,000.00||500,000.00|Related to assets|
|line (line 6)|||||
|project|||||
|Imported|||||
|equipment and|||||
|technology of|857,705.00||857,705.00|Related to assets|
|discount interest|||||
|funds|||||
|key technology|||||
|research and deve|||||
|lopment projects|||||
||5,000,000.00||5,000,000.00|Related to assets|
|of optical|||||
|compensation|||||
|film for polarizer|||||
|Strategic|||||
|industries|||||
|Development|||||
||20,000,000.00||20,000,000.00|Related to assets|
|fund of|||||
|Guangdong|||||
|Province|||||
|Grants of|||||
|Purchase|||||
|equipment of|||||
||20,000,000.00||20,000,000.00|Related to assets|
|TFT-LCD|||||
|polarizing film|||||
|phase II project|||||
|Energy saving|||||
|transformation|149,845.50||149,845.50|Related to assets|
|grant funds|||||
|Total|99,524,165.58|2,165,711.40|97,358,454.18|--|

Notes：
（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 non-operating income in current period is
RMB0, the ending balance of uncompleted amortization is RMB 1,000,000.02 .
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 (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 non-operating income in current period is RMB 100,000.00 and the balance amount of unfinished final amortization is RMB 700,000.00.
(3) According to the document of the Office of the State Development and Reform Commission on "The Office of the State Development and Reform Commission on the Reply of New Flat-Panel Display Industrialization Special Project” (Development and Reform OfficeHigh-Tech【2008】No. 2104), the company obtained the state subsidies RMB 10,000,000.00 from the State Development and Reform Commission New Flat-Panel Display Industrialization Special Project for the construction of “The Project of Polaripiece Industrialization for TFT-LCD”. On June 2009, December 2009 and April 2010, the company received the special subsidies of State Development and Reform Commission RMB 10,000,000.00. Our company will use 10 years as asset depreciation period for amortization. The non-operating income in current period is RMB500,000.00, the balance amount of unfinished final amortization is RMB 3,500,000.00;
（4）On December 2009 ,June 2011 and February 2013, the Company received a loan interest discount funds of RMB 992,000.00, RMB 850,000.00 and RMB 483,000.00 allocated by Shenzhen Bureau of Finance for phase-II alteration project. Our company will use 10 years as asset depreciation period for amortization in current period.The non-operating income in current period is RMB 120,972.24 and the balance amount of unfinished final amortization is RMB846,805.40.
（5）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 RMB649,999.98. and the balance amount of unfinished final amortization is RMB7,583,333.36.
（6）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 RMB3,249,999.98.
（7）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 RMB87,545.10 and the balance amount of unfinished final amortization is RMB1,114,742.28.
（8）On December2013，The company received the funds for innovation and entrepreneurship of 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 RMB324,999.98.
（9）On December2013，The company received the funds for innovation and entrepreneurship of of TFT-LCD
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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 RMB250,000.02 and the balance amount of unfinished final amortization is RMB437,499.98.
（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 RMB4,374,999.98.
（11）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 RMB2,625,000.00.
(12)On March 2014 the company received the introduction of advanced technology import subsidy 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 RMB93,522.70.
（13）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.
（14）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.
（15）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;
（16）On September2014，The company received a discount of imported equipment and technology funds of RMB 857,705.00.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.
(17) 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 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) 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, the Company received 20 million RMB of the pilot project fund( period II project of TFT-LCD polarizer).The company will
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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.
(19) 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 20 million RMB of new production line of TFT-LCD polarizer project period II and equipment purchase subsidy in August 2015 and December 2015.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.
(20) In 2015, the Company received the subsidy funds of 202,608.00 RMB on energy-saving reconstruction, amortized by 8-year depreciation life of the relevant asset, the no business income was 52,762.50 RMB at the current period, the ending balance without amortization was 149,845.50 RMB
30.Stock capital
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Changed（+，-）||||||
||Balance in|Issuance of||Capitalization|||Balance in|
||year-begin||Bonus shares|of public|Other|Subtotal|year-end|
|||new share||||||
|||||reserve||||
|Total of capital|506,521,849.00||||||506,521,849.00|
|shares||||||||

31.Capital reserves
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginning balance|Increase in the current|Decrease in the current|Year-end balance|
|||period|period||
|Share premium|1,574,407,414.34|||1,574,407,414.34|
|Other|10,722,637.03|6.38||10,722,643.41|
|Total|1,585,130,051.37|6.38||1,585,130,057.75|

 Othernotes：
Dividend income piecemeal shares over the years.
32.Other Comprehensive income
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Amount of current period||||||
||||Less ：|||||
||Year-beginni|Amount for|Previously rec||After - tax a|After - tax a|Year-end|
|Items|ng balance|the period|ognized in pro|Less：|ttributable t|ttributable t|balance|
||||fit or loss in ot|||||
|||before inco||Income tax|o the parent|o minority s||
||||her comprehen|||||
|||me tax|||company|hareholders||
||||sive income|||||
|2.Other comprehensive income|||||-2,009,434.06|||
|||-2,756,126.|||||1,202,753|
|reclassifiable to profit or loss in|3,212,187.35|||-746,692.75||||
|||81|||||.29|
|subsequent periods||||||||
|Gains and losses from changes in fair|||||-2,240,078.24|||
|||-2,986,770.|||||561,867.8|
|value of financial assets available for|3,045,914.97|||-746,692.75||||
|||99|||||1|
|sale||||||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
|||||||
|-|-|-|-|-|-|
|Translation differences of financial||||230,644.18|396,916.5|
||166,272.3|8 230,644.18||||
|statements denominated|||||6|
|Total of other comprehensive income|3,212,187.3|-2,756,126.581||-2,009,434.06|1,202,753.29|
||||-746,692.75|||

 33.Surplus reserve
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginning balance|Increase in the current|Decrease in the current|Year-end balance|
|||period|period||
|Statutory surplus reserve|70,539,319.86|||70,539,319.86|
|Total|70,539,319.86|||70,539,319.86|

 34. Retained profits
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Before adjustments: Retained profits at the periodend|||
||9,166,137.97|6,805,203.33|
|After adjustments: Retained profits at the periodbeginning|9,166,137.97||
|||6,805,203.33|
|Add: Net profit attributable to owners of theCompany for the period|||
||-30,097,851.40|8,497,227.40|
|Less: Appropriation to statutory surplus reserve||6,136,292.76|
|Retained profits at the period end|-20,931,713.43|9,166,137.97|

 35. Business income, Business cost
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Items|||||
||Income|Cost|Income|Cost|
|Main Business|549,898,612.98|509,134,763.07|619,165,953.39|586,310,645.92|
|Other Business|2,258,972.58|2,114,934.57|1,827,380.09|1,827,380.11|
|Total|552,157,585.56|511,249,697.64|620,993,333.48|588,138,026.03|

 36. Business tax and subjoin
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Business tax|1,683,641.93|2,424,634.23|
|Urban construction tax|175,298.23|123,396.62|
|Education surcharge|127,629.51|88,140.42|
|House tax|1,028,950.29|883,482.95|
|Other|111,418.07|26,966.44|
|Total|3,126,938.03|3,546,620.66|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 37.Sales expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage|1,204,137.01|1,178,294.41|
|Exhibition fee|144,038.99|213,381.75|
|Advertising expenses|0.00|21,367.52|
|Business expenses|420,563.34|368,414.34|
|Transportation changes|1,655,766.13|1,717,902.03|
|Samples and product loss|369,885.00|394,738.08|
|Other|721,619.16|1,116,600.90|
|Total|4,516,009.63|5,010,699.03|

 38.Administrative expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage|16,718,507.40|19,439,303.33|
|Property insurance|151,170.29|177,262.23|
|Repair charge|97,758.00|474,977.18|
|Business entertainment|718,023.30|744,434.80|
|Travel expenses|511,070.78|631,874.05|
|Office expenses|579,632.65|546,116.03|
|Water and electricity|363,586.77|2,007,974.64|
|Tax|2,353,718.22|885,760.50|
|Lawsuit expenses|175,591.27|3,999.00|
|Agency expenses|1,460,232.39|1,370,706.42|
|R& D|15,804,933.22|11,956,715.67|
|Board fees|54,038.00|58,135.00|
|Other|3,221,999.30|2,891,255.97|
|Depreciation of fixed assets|3,298,774.50|3,077,101.23|
|Amorization of intangible assets|589,675.55|616,554.33|
|Amortization of long-term deferred|||
||15,483.48|89,550.48|
|expenses|||
|Low consumables amortization|10,060.00|85,564.00|
|Total|46,124,255.12|45,057,284.86|

 39.Financial Expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|Interest expenses|||
||2,623,711.45|3,962,978.70|
|Interest income|||
||-14,044,416.50|-15,870,335.45|
|Exchange loss|19,620,000.69|483,171.30|
|Fees and other|||
||773,521.92|150,999.82|
|Total|8,972,817.56|-11,273,185.63|

40.Loss of assets impairment
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|I .Losses for bad debts|||
||2,320,690.69|2,000,874.24|
|II. Losses for falling price of inventory|||
||6,252,416.77|18,732,928.24|
|Total|8,573,107.46|20,733,802.48|

 41. Investment income
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Investment income from the disposal of|||
||711,998.34|1,029,521.87|
|long-term equity investment|||
|Hold the investment income during from|||
|available-for-sale financial|1,555,194.95|2,118,237.17|
|assets|||
|Investment income gain from available for sale|||
|||44,444,187.39|
|financial assets|||
|Total|2,267,193.29|47,591,946.43|

 42. 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|
|Total gains from disposal of||300.00||
|non-current assets||||
|Including：Gains from disposal||||
|||300.00||
|of fixed assets||||
|Government Subsidy|2,165,711.40|5,781,523.39|2,165,711.40|
|Other|132,509.01|2,095,125.89|132,509.01|
|Total|2,298,220.41|7,876,949.28|2,298,220.41|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 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|||||
||||Because||||||
||||company||||||
||||work on||||||
||||specific||||||
||||industry that||||||
|Amortization|||||||||
||||country||||||
|of|||||||||
||||encourage||||||
|government||||||||Related to|
|||Subsidy|and support,|No|No||3,954,990.00||
|research and||||||||Income|
||||the company||||||
|development|||||||||
||||received||||||
|grants|||||||||
||||grants||||||
||||(according to||||||
||||national||||||
||||policy legally||||||
||||obtained)||||||
||||Because||||||
||||company||||||
||||work on||||||
||||specific||||||
|Amortization|||industry that||||||
|of high-tech|||country||||||
|industrializati|||encourage||||||
|||||||||Related to|
|on|||and support,||||||
|||Subsidy||No|No|100,000.00|100,000.00||
|demonstratio|||the company|||||assets|
|n project|||received||||||
|matching|||grants||||||
|funds|||(according to||||||
||||national||||||
||||policy legally||||||
||||obtained)||||||
||||Because||||||
||||company||||||
||||work on||||||
|New-style|||specific||||||
|industrializati|||industry that||||||
|on of flat|||country||||||
|panel display|||encourage|||||Related to|
|amortization||Subsidy|and support,|No|No|500,000.00|500,000.00|assets|
|of State|||the company||||||
|subsidy funds|||received||||||
|for special|||grants||||||
|projects|||(according to||||||
||||national||||||
||||policy legally||||||
||||obtained)||||||
||||Because||||||
|Shenzhen|||company||||||
|municipal|||work on||||||
|||||||||Related to|
|financial||Subsidy|specific|No|No|120,972.24|120,972.21||
|transfer loan|||industry that|||||assets|
|amortization|||country||||||
|of discount|||encourage||||||
||||and support,||||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
|||the company||||||
|||received||||||
|||grants||||||
|||(according to||||||
|||national||||||
|||policy legally||||||
|||obtained)||||||
|||Because||||||
|||company||||||
|||work on||||||
|Amortization||specific||||||
|of grant||industry that||||||
|funds for||country||||||
|phase-I||encourage|||||Related to|
|Narrow line|Subsidy|and support,|No|No|250,000.02|250,000.00|assets|
|project of||the company||||||
|polarizer for||received||||||
|TFT-LCD||grants||||||
|TFT-LCD||(according to||||||
|||national||||||
|||policy legally||||||
|||obtained)||||||
|||Because||||||
|||company||||||
|||work on||||||
|||specific||||||
|||industry that||||||
|Amortization||||||||
|||country||||||
|of subsidy for||||||||
|||encourage||||||
|the|||||||Related to|
|industrializati|Subsidy|and support,the company|No|No|649,999.98|650,000.00|assets|
|on project of||received||||||
|polarizer for||||||||
|||grants||||||
|TFT-LCD||||||||
|||(according to||||||
|||national||||||
|||policy legally||||||
|||obtained)||||||
|||Because||||||
|||company||||||
|||work on||||||
|||specific||||||
|Amortization||industry that||||||
|of purchase||country||||||
|of imported||encourage|||||Related to|
|equipment|Subsidy|and support,|No|No|87,545.10|87,545.10|assets|
|and||the company||||||
|technology||received||||||
|grants||grants||||||
|||(according to||||||
|||national||||||
|||policy legally||||||
|||obtained)||||||
|||Because||||||
|||company||||||
|||work on||||||
|Grant funds||specific||||||
|for TFT-LCD||industry that|||||Related to|
|polarizer|Subsidy|country|No|No|25,000.02|25,000.00|assets|
|industry||encourage||||||
|project||and support,||||||
|||the company||||||
|||received||||||
|||grants||||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
|||(according to||||||
|||national||||||
|||policy legally||||||
|||obtained)||||||
|||Because||||||
|||company||||||
|||work on||||||
|||specific||||||
|||industry that||||||
|Amortization||||||||
|||country||||||
|for the introd||||||||
|||encourage|||||Related to|
|uction of advanced technol|Subsidy|and support,|No|No|7,194.00|7,194.08|assets|
|||the company||||||
|ogy import ca||||||||
|||received||||||
|pital funding||||||||
|||grants||||||
|||(according to||||||
|||national||||||
|||policy legally||||||
|||obtained)||||||
|||Because||||||
|||company||||||
|||work on||||||
|||specific||||||
|||industry that||||||
|||country||||||
|Futian||||||||
|||encourage||||||
|District|||||||Related to|
|Industrial|Subsidy|and support,the company|No|No||63,000.00|Income|
|Development||received||||||
|grant funds||||||||
|||grants||||||
|||(according to||||||
|||national||||||
|||policy legally||||||
|||obtained)||||||
|||Because||||||
|||company||||||
|||work on||||||
|||specific||||||
|Economic||||||||
|||industry that||||||
|and Trade||||||||
|||country||||||
|Commission||||||||
|||encourage||||||
|2013 foreign|||||||Related to|
||Subsidy|and support,|No|No||16,722.00||
|trade|||||||Income|
|||the company||||||
|structure||||||||
|||received||||||
|optimization||||||||
|||grants||||||
|support funds||||||||
|||(according to||||||
|||national||||||
|||policy legally||||||
|||obtained)||||||
|||Because||||||
|||company||||||
|||work on||||||
|||specific||||||
|||industry that||||||
|||country||||||
|Exhibition|Subsidy|encourage|No|No||6,100.00|Related to|
|subsidies||and support,|||||Income|
|||the company||||||
|||received||||||
|||grants||||||
|||(according to||||||
|||national||||||
|||policy legally||||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||||||
|-|-|-|-|-|-|-|-|-|
||||obtained)||||||
||||Because||||||
||||company||||||
||||work on||||||
|Shenzhen|||||||||
||||specific||||||
|polarizing|||||||||
||||industry that||||||
|materials and|||||||||
||||country||||||
|Technology|||||||||
||||encourage|||||Related to|
|EngineeringLaboratory||Subsidy|and support,|No|No|25,000.02||assets|
||||the company||||||
|Innovation|||||||||
||||received||||||
|and|||||||||
||||grants||||||
|entrepreneurs|||||||||
||||(according to||||||
|hip funds|||||||||
||||national||||||
||||policy legally||||||
||||obtained)||||||
||||Because||||||
||||company||||||
||||work on||||||
||||specific||||||
||||industry that||||||
|Shenzhen|||||||||
||||country||||||
|polarizing|||||||||
||||encourage|||||Related to|
|plate materialtechnology||Subsidy|and support,|No|No|250,000.02||assets|
||||the company||||||
|Engineering|||||||||
||||received||||||
|Laboratory|||||||||
||||grants||||||
||||(according to||||||
||||national||||||
||||policy legally||||||
||||obtained)||||||
||||Because||||||
||||company||||||
||||work on||||||
||||specific||||||
||||industry that||||||
||||country||||||
|Capital|||encourage||||||
|||||||||Related to|
|funding for|||and support,||||||
|||Subsidy||No|No|150,000.00|||
|Technology|||the company|||||assets|
|Center|||received||||||
||||grants||||||
||||(according to||||||
||||national||||||
||||policy legally||||||
||||obtained)||||||
|Total|--|--|--|--|--|2,165,711.40|5,781,523.39|--|

43．Non-current expenses
In RMB
|||||
|-|-|-|-|
||Amount of current period|Amount of previous period|The amount of non-operating|
|Items||||
||||gains & lossed|
|Total of non-current asset|20,770.93|72,965.54||
||||20,770.93|
|Disposition loss||||
|Incl: loss of fixed assets||||
||20,770.93|72,965.54|20,770.93|
|disposition||||
|Other|58.85|23.02|58.85|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
|||||
|-|-|-|-|
|Total|20,829.78|72,988.56|20,829.78|

 44. Income tax expenses
（1）Income tax expenses
In RMB
||||
|-|-|-|
||Amount of current period|Amount of previous period|
|Items|||
|Current income tax expense|6,088,398.09|16,871,410.54|
|Deferred income tax expense|-1,851,202.65|636,554.71|
|Total|4,237,195.44|17,507,965.25|

（2）Reconciliation of account profit and income taxexpenses：
In RMB
|||
|-|-|
|Items|Amount of current period|
|Total profits|-25,860,655.96|
|Income tax computed in accordance with the applicable tax rate|-6,465,163.99|
|Effect of different tax rateapplicable to the subsidiary Company|4,963,860.82|
|Influence of income tax before adjustment|-2,185,657.56|
|Influence of non taxable income|-177,999.59|
|Impact of non-deductible costs, expenses and losses|8,102,155.76|
|The current period does not affect the deferred tax assets|4,237,195.44|
|recognized deductible temporary differences or deductible loss||
|Income tax expense||

45.Other comprehensive income
Details refer to the Note 32.
46.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
||2,165,711.40|5,161,875.00|
|Government Subsidy|||
||30,907,810.95|21,323,964.63|
|Bank deposit interest income and other|||
|Total|33,073,522.35|26,485,839.63|

 (2).Other cash paid related to oprating activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|Research & development expenses|15,804,933.22|1,351,411.41|
|Office expenses|579,633.65|554,757.31|
|Business hospitality|1,138,586.64|1,112,849.14|
|Travel fee|511,070.78|778,192.93|
|Transportation expnses|1,655,776.13|1,717,902.03|
|Agency Fee|1,460,232.39|1,370,706.42|
|Insurance premium|151,170.29|177,262.23|
|Water and electricity fee|2,258,972.58|2,007,974.64|
|Repair feee|236,364.98|474,977.18|
|Exhibition expenses|144,038.99|213,381.75|
|Other|32,355,682.11|4,314,248.35|
|Total|56,296,461.76|14,073,663.39|

 (3)Cash received related to other investment activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Fragmented dividend|6.38||
|Total|6.38||

(4)Cash paid related to other investment activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Structure deposit investment|368,000,000.00|460,000,000.00|
|Deposited in the fixed deposit account|0.00|57,269.91|
|Total|368,000,000.00|460,057,269.91|

 47. 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|-30,097,851.40|7,668,027.95|
|Add: Impairment loss provision of assets|-13,629,724.46|75,317.28|
|Depreciation of fixed assets, oil and gas|||
||37,072,204.67|39,299,556.21|
|assets and consumable biological assets|||
||589,675.55|616,554.33|
|Amortization of intangible assets|||
|Amortization of Long-term deferred|||
||153,604.01|123,701.50|
|expenses|||
|Loss on disposal of fixed assets, intangible|||
|||72,361.36|
|assets and other long-term deferred assets|||
|Financial cost|21,494,287.45|-15,048,693.89|
|Loss on investment|-2,267,193.29|-47,591,946.43|
|Decrease in deferred income tax assets|-240,628.26|643,238.30|
|Increased of deferred income tax liabilities|-278,469.57|-9,787,548.52|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|Decrease of inventories|14,425,655.98|-29,251,840.91|
||-77,223,450.49|-29,915,050.88|
|Decease of operating receivables|||
|Increased of operating Payable|10,685,694.47|87,389,451.70|
|Net cash flows arising from operating|-39,316,195.34|4,293,128.00|
|activities|||
|II. Significant investment and financing|||
||--|--|
|activities that without cash flows:|||
|III．Movement of cash and cash equivalents：|--|--|
|Ending balance of cash equivalents|665,289,786.79|638,275,236.97|
|Less: Beginning balance of cash equivalents|748,658,875.60|1,098,232,359.02|
|Net increase of cash and cash equivalents|-83,369,088.81|-459,957,122.05|

 (2)Composition of cash and cash equivalents
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|I. Cash|665,289,786.79|748,658,875.60|
|Including：Cash at hand|||
||12,995.11|8,872.71|
|Demand bank deposit|602,045,962.06|746,697,143.40|
|Demand other monetary funds|63,230,729.62|1,952,859.49|
|III. Balance of cash and cash equivalents at|665,289,686.79|748,658,775.60|
|the period end|||

 48. The change of owner's equity statement
Description of the prior year ending balance adjustment "Other" item name and adjust the amount of such matters as:
1, the capital reserve increased by piecemeal share dividend 6.38 yuan;
2, other comprehensive income due to holding financial assets available for sale fair value changes Diaojian 2,253,402.98 yuan;
3, because the first half of undistributed losses Tiaojian 30,097,851.39 yuan.
49.Foreign currency monetary items
(1)Foreign currency monetary items
In RMB
|||||
|-|-|-|-|
||Closing foreign currency||Closing convert to RMB|
|Items||Exchange rate||
||balance||balance|
|Monetary fund||||
|Including：USD|982,693.22|6.6312|6,516,435.28|
|HKD|116,928.01|0.8547|99,935.34|
|JPY|172,681.04|0.06449|11,136.37|
|Account receivable||||
|Including：USD|8,802,565.98|6.6312|58,371,575.53|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
|||||
|-|-|-|-|
|HKD|278,280.00|0.8547|237,845.92|
|JPY||||
|Other receivable||||
|Including：USD|37,399.02|6.6312|248,000.38|
|JPY||||
|Short –term loans||||
|Including：USD|2,671,696.23|6.6312|17,716,552.04|
|JPY|131,868,450.00|0.06449|8,504,328.21|
|Account payble||||
|Including：USD|17,804,100.97|6.6312|118,062,554.36|
|JPY|903,131,060.99|0.06449|58,243,825.20|
|Other payable||||
|Including：USD|93,867.50|6.6312|622,454.17|
|HKD|2,042,954.08|0.8547|1,746,094.86|

 (2) Note to overseas operating entities, including important overseas operating entities, wich should be disclosed about its principal business place, function currency for bookkeeping and basis for the choice. In case of any change in function currency, the cause should be disclosed.
□ Applicable √ Not applicable
VIII. 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|Property|100.00%||Establish|
|Development Co.,|||||||
|Ltd|||Management||||
||||Accommodation,||||
|Shenzhen|||||||
||Shenzhen|Shenzhen|restaurants,|100.00%||Establish|
|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||||
|Century Garment||||100.00%|||
||||jacquard knitting||||
|Co., Ltd.|||whole shape||||
|Shenzhen|||||||
|Shengbo|||||||
||Shenzhen|Shenzhen|Operating import||||
|Ophotoelectric||||100.00%||Purchase|
|Technology Co.,|||and export||||
|Ltd|||||||
||||business||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 2.Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
||||||||
|-|-|-|-|-|-|-|
|Joint venture or||||Holding proportion(%)||The accounting|
|||Place of|||||
|associated|Place of operation||Nature|||treatment of|
|||registration||Directly|Indirectly|investment in|
|enterprise||||||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)Key financial information of significant joint venture or associated enterprise
In RMB
||||
|-|-|-|
||Year-end balance/ Amount of current|Year-beginning balance/ Amount of|
||period|previous period|
|Joint venture：|||
||--|--|
|Total book value of the investment||7,521,241.97|
|Total amount of the pro rata calculation of|||
||--|--|
|the following items|||
|--Net profit||350,367.79|
|--Other Comprehensive income||350,367.79|
|Associated enterprise：|--|--|
|Total amount of the pro rata calculation of|||
||--|--|
|the following items|||
|--Net profit||-5,815.71|
|--Other Comprehensive income||673,338.37|

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

According to the company along with Hongkong Qiaohui Industries Co.,Ltd. signed "Agreement on cooperative
development and construction of Guanhua building", jointly developed Guanhua building construction, the compa
ny invested50.16%, Hong Qiao Hui Industrial Co., Ltd. invested49.84%, the two sides need to agree matters affe
cting the cooperation projects. In addition, the two sides agreed to the project is completed in accordance with the
ratio of the actual investment allocation or co-operation, specific programs need further deliberations.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 As of the reporting period, Guanhua building project has been basically completed, and has been carried over to do real estate investment process.
IX. Risks Related to Financial Instruments
The company has the main financial instruments, such as bank deposits, receivables and payables, investments, loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these financial instruments mainly include credit risk, market risk and liquidity risk. Thecompany’s management shall manage and monitor these risks and ensure above risks to be controlled within certain scope.
（I）Credit Risk
The credit risk of the company is primarily attributable to bank deposits and receivables. Of which, the bank deposits are mainly deposited in the medium and large commercial banks with strength, high credibility. For the receivables, the company has developed the relevant policies to control the credit risk, and set up the corresponding debt and credit limit after the credit status of debtor is evaluated based on financial condition of debtor, credit history, external ratings, possibility of guarantee obtained from the third party. Meanwhile, the company shall regularly monitor thedebtor’s credit history. With regard to the bad credit record for the debtor, the company shall adopt the written reminder, shortening or cancel of credit period to ensure the overall credit risks within the controllable scope.
（II）Market risk
Market risk of financial instrument arises from changes in fair value or future cash flow of financial instruments affected by market price . Market risks includes foreign exchange risk and interest risk.
(1) Interest Rate Risk
The interest rate risk faced by the company is mainly from the bank borrowings. The company is faced the interest rate risk of the cash flow due to the financial liability of the floating interest rate, and faced the interest rate risk of the fair value due to the financial liability of the fixed interest rate. The company shall determine the relative proportion in the fixed and floating interest rate contracts.
(2) Foreign Exchange Risk
The foreign exchange risks faced by the company are mainly from the financial assets and liabilities based on the price of US dollar and JPY. The company matches the income and expenditure of foreign currency as far as possible in order to reduce the foreign exchange risk.
（III）Liquidity risk
Liquidity risk refers to fund shortage problems when fulfilling obligations settled in cash or other financial assets. The company shall guarantee to have the sufficient funds to repay the debts through monitoring the cash balance, the marketable securities available to be cash and the rolling forecast for the future cash flow.
X. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
||||||
|-|-|-|-|-|
||Closing fair value||||
|Items|Fir value measurement|Fir value measurement|Fir value measurement||
|||||Total|
||items at level 1|items at level 2|items at level 3||
|I. Consistent fair value|||||
||--|--|--|--|
|measurement|||||
|(1).Available for sale|||||
||7,067,705.61|||7,067,705.61|
|financial assets|||||
|1.Equity instrument|||||
||7,067,705.61|||7,067,705.61|
|investment|||||
|Total of Consistent fair|||||
||7,067,705.61|||7,067,705.61|
|value measurement|||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||
|-|-|-|-|-|
|III. Non Consistent fair|||||
|value|--|--|--|--|
|measurement|||||

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 30,2016.
XI. Related parties and related-party transactions
1.Parent company information of the enterprise
|||||||
|-|-|-|-|-|-|
|||||The parent company|The parent company|
||||Registered capital|||
|Name|Registered address|Nature||||
|||||of the Company's|of the Company’s|
||||（RMB’0000）|||
|||||shareholding ratio|vote ratio|
||18/F, Investment|||||
|||Equityinvestment ,||||
|Shenzhen|Building, Shennan|||||
|||RealestateDevelopm||||
|Investment Holdings|||1,092,599.0674|46.21%|49.39%|
||Road, Futian|||||
|Co.,Ltd.||||||
|||entandGuarantee||||
||District, Shenzhen|||||

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 stateownedassetssupervision& AdministrationCommission.
2.Subsidiaries of the Company
Details refer to the Note VIII. Equity in other entity 1.Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note VIII. Equity in other entity 2.Interests in joint ventures or associates
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|
|Shenzhen Xiangjiang Trade Co., Ltd.|Sharing Company|
|Shenzhen Xinfang Knitting Co., Ltd.|Sharing Company|
|Shenzhen Dailishi Underwear Co., Ltd.|Sharing Company|
|Anhui Huapeng Textile Co., Ltd.|Sharing Company|
|Shengbo （HK）Co., Ltd.|The Company Executivesare Director of the company|

5. Related transactions.
1．Sales of goods and vendering of services
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 (1) Related party transactions of purchasing goods and services
Selling of goods and services
In RMB
|||||
|-|-|-|-|
||Subjects of the related|||
|Related parties||Occurred current term|Occurred in previous term|
||transactions|||
|Shenzhen Tianma||||
||Sales polarizer sheet|957,463.47|1,091,908.67|
|Microelectronics Co., Ltd.||||

(2)Rewards for the key management personnel
In RMB
||||
|-|-|-|
||Amount of current period|Amount of previous period|
|Items|||
|Rewards for the key management|||
||1,869,653.00|1,728,309.00|
|personnel|||

（3）Other related parties
For the construction of the project of polarizer sheet for TFT-LCD, the Company signed Entrusted Loan Contract with Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Jiangsu Building Sub-branch of Shenzhen Development Bank Co., Ltd. in 2010. According to the contract, Shenzhen Shenchao Technology Investment Co., Ltd. entrusted Shenzhen Jiangsu Building Sub-branch of Shenzhen Development Bank Co., Ltd. to extend a loan of RMB 200 million to the Company. The term of the loan is 108 months from the day when the first installment of entrusted loan is transferred to the account of the Company. The interest rate of the entrusted loan is the rate of commercial loans with a term of 5 years quoted by People's Bank of China minus2%. IAS of June 30, 2016, The Company actually received a loan of RMB 120 million.
6. Receivables and payables of related parties
（1）Receivables
In RMB
|||||||
|-|-|-|-|-|-|
|||Amount at year end||Amount at year beginning||
|Name|Related party|||||
|||Balance of Book|Bad debt Provision|Balance of Book|Bad debt Provision|
||Shenzhen Tianma|||||
|Account receivable|Microelectronics|477,930.79|23,896.54|349,938.59|17,496.93|
||Co., Ltd.|||||
|Other Account|Anhui Huapeng|||||
|||3,600,000.00|270,000.00|3,600,000.00|270,000.00|
|receivable|Textile Company|||||
|Other Account|Shenzhen Dailishi|||||
|||837,780.00|41,889.00|277,172.52|13,858.63|
|receivable|Underwear Co., Ltd.|||||

（2）Payables
In RMB
|||||
|-|-|-|-|
|Name|Related party||Amount at year beginning|
|||Amount at year end||
||Shenzhen Xinfang Knitting Co.,|||
|Other payable||244,789.85|244,789.85|
||Ltd.|||
||Shenzhen Xiangjiang Trade|||
|Other payable||40,000.00|40,000.00|
||Co., Ltd.|||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
|||||
|-|-|-|-|
||Shenzhen Changlianfa Printing|||
|Other payable||916,673.69|916,673.69|
||and dyeing Co., Ltd.|||
||Shenzhen Haohao Property|||
|Other payable||4,529,489.85|4,179,489.85|
||Leasing Co., Ltd.|||
|Other payable|Yehui International Co.,Ltd.|1,137,966.35|1,137,966.35|
||Shenzhen Dailishi Underwear|||
|Other payable||570,686.82|315,000.00|
||Co., Ltd.|||
||Shenzhen Shenchao Technology|||
|Interest payable||39,000,625.75|39,000,625.75|
||Investment Co., Ltd.|||

 XII. Notes s of main items in financial reports of parent company
1.Account receivable
(1).Classification accojunt receivables.
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year-beginning|||||
||Book Balance||Bad debt provision||Book|Book Balance||Bad debt provision|||
|Classification||||||||||Book value|
||Amount|Proportio|Amount|Proportio|value|Amount|Proportio|Amount|Proportion(||
|||n(%)||n(%)|||n %||%)||
|Accounts receivable||||15.00%|||||||
|subjecttoimpairment|||||||||||
||639,578.||31,978.9||607,599.4|862,162|||||
|assessment by credit||100.00%|||||100.00%|43,108.13|5.00%|819,054.57|
||40||1||9|.70|||||
|risk characteristics of|||||||||||
|a portfolio|||||||||||
||639,578.||31,978.9||607,599.49|862,162||||819,054.57|
|Total||||||||43,108.13|||
||40||1|||.70|||||

Accounts receivable of individual significance and subject to individual impairment assessment.
□ Applicable√ Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □ Not applicable
In RMB
|||||
|-|-|-|-|
||Balance in year-endAccount receivable Bad debt provision Rate of alloance(%)|||
|Aging||||
|||Bad debt provision|Rate of alloance(%)|
|Within item 1 year||||
|Within 1 year|639,578.41|31,978.92|5.00%|

 Receivable account in Group on which bad debt provisions were provided on percentagebasis：
□Applicable√Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB 10,848.28 ; The acmount collected or switches back amounting to
RMB-21,977.50.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016 2.Other receivable
(1)Category of Other receivable
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year-beginng|||||
||Book Balance||Bad debt provision|||Book Balance||Bad debt provision|||
|Classification|||||Book||||||
||Amount|Proportio|Amount|Proportio||Amount|Proportio|Amount|Proportion(|Book value|
||||||value||||||
|||n(%)||n(%)|||n(%)||%)||
|Other accounts|||||||||||
|receivable of|||||||||||
|individual|||||||||||
||11,981,464.60||11,981,4|||11,981,||11,981,46|||
|significance and||13.43%||100.00%|||12.98%||100.00%||
|subject to individual|||64.60|||464.60||4.60|||
|impairment|||||||||||
|assessment|||||||||||
|Other accounts|||||||||||
|receivable|||||||||||
|subjecttoimpairme|||||||||||
||80,527,202.92||7,463,29||73,063,90|79,979,||7,435,914||72,543,709.|
|nt assessment by||86.22%||9.27%|||86.68%||9.30%||
|credit risk|||3.43||9.49|624.27||.49||78|
|characteristics of a|||||||||||
|portfolio|||||||||||
|Other accounts|||||||||||
|receivable of|||||||||||
|individual|||||||||||
||311,486.35||311,486.|||311,486||311,486.3|||
|insignificance but||0.35%||100.00%|||0.34%||100.00%||
|subject ot individual|||35|||.35||5|||
|impairment|||||||||||
|assessment|||||||||||
|Total|92,820,153.87|100.00%|19,756,2||73,063,909.49|92,272,|100.00%|19,728,86||72,543,709.78|
||||44.38|||575.22||5.44|||

 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||||
|Debtor|||||
||Other accountreceivable||||
|||Bad debt provision|Rate of alloance(%)|Reason for allowance|
|Jiangxi Xuanli String Co.,||||Estimates can not be|
||11,389,044.60|11,389,044.60|100.00%||
|Ltd.||||recovered|
|Shenzhen Tianlong||||Estimates can not be|
||592,420.00|592,420.00|100.00%||
|Induatry& Trade Co., Ltd.||||recovered|
|Total|11,981,464.60|11,981,464.60|--|--|

Other receivable accounts in Group on which bad debt provisions were provided on age analyzebasis：
√ Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Amount in year-endOther receivable Bad debt provision Withdrawal proportion|||
|Aging||||
|||Bad debt provision|Withdrawal proportion|
|Within item 1 year||||
|Subtotal within 1 year|71,289,573.4|2 3,564,478.68|5.00%|
|Within 1 year|1,800,000.0|0 180,000.00|10.00%|

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
|||||
|-|-|-|-|
|Over 3 year|7,437,629.50|3,718,814.75|50.00%|
|Total|80,527,202.92|7,463,293.43||

Other receivable account in Group on which bad debt provisions were provided on percentagebasis：
□ Applicable√Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in theportfolio：
□ Applicable√Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB0.00, the acount collected or switches back amounting to RMB153,512.27.（3）Other accounts receivable classified by the nature of accounts
In RMB
||||
|-|-|-|
||Year-end balance|Year-beginning balance|
|Category|||
|In Inter-company accounts|75,889,102.97|75,889,102.97|
|Unit account|16,151,323.38|16,251,300.27|
|Other|779,727.52|132,171.98|
|Total|92,820,153.87|92,272,575.22|

（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
|||||||
|-|-|-|-|-|-|
|||||Portion in total other|Bad debt provision|
|Name|Nature|Year-end balance|Age|||
|||||receivables(%)|of year-end balance|
||In Inter-company|||||
|||63,644,822.25|Within 1 year|68.57%|3,182,241.10|
|First|accounts|||||
|Second|Unit account|11,389,044.60|Over 3 years|12.27%|5,694,522.30|
||Inter-company|||||
|||7,168,680.72|Over 3 years|7.72%|3,584,340.36|
|Third|accounts|||||
||Inter-company|||||
|||5,000,000.00|Within 1 year|5.39%|250,000.00|
|Fouth|accounts|||||
|||75,600.00|Over 3 years|0.08%|37,800.00|
|Fifth|Unit account|1,800,000.00|Within 1 year|1.94%|90,000.00|
|||1,800,000.00|1-2 years|1.94%|180,000.00|
|Total|--|90,878,147.57|--|97.91%|13,018,903.76|

 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|||||||
||1,980,806,395.91|16,582,629.30|1,964,223,766.61|1,772,806,395.91|16,582,629.30|1,756,223,766.61|
|subsidiary|||||||
|Investment to|||||||
|joint ventures and|23,877,116.06|266,654.99|23,610,461.07|23,145,924.05|266,654.99|22,879,269.06|
|associated|||||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||||||
|-|-|-|-|-|-|-|
|enterprises|||||||
|Total|2,004,683,511.97|16,849,284.29|1,987,834,227.68|1,795,952,319.96|16,849,284.29|1,779,103,035.67|

（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|||||||
||1,716,663,070.03|208,000,000.00||1,924,663,070.03||14,415,288.09|
|Technology Co.,|||||||
|Ltd.|||||||
|Shenzhen Lisi|||||||
|Industrial|||||||
||8,073,388.25|||8,073,388.25|||
|Development Co.,|||||||
|Ltd.|||||||
|Shenzhen Beauty|||||||
|Centruty Garment|30,867,400.00|||30,867,400.00||2,167,341.21|
|Co., Ltd.|||||||
|Shenzhen|||||||
||15,489,351.08|||15,489,351.08|||
|Huaqiang Hotal|||||||
|Shenfang Property|||||||
|Management Co.,|1,713,186.55|||1,713,186.55|||
|Ltd.|||||||
|Total|1,772,806,395.91|208,000,000.00||1,980,806,395.91||16,582,629.30|

（2）Investment to joint ventures and associated enterprises
IIn RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase /decrease in reporting period||||||||||
||||||||||||Closing|
||||||Adjustme|||||||
|||||||||Withdraw|||balance|
|Name|Opening|Add|Decrease|Gain/loss|nt of|Other|Declarati|n||Closing|of|
||balance|investmen|d|of|other|equity|on of cash|impairme|Other|balance|impairme|
|||t|investmen|Investme|comprehe|changes|dividends|nt|||nt|
||||t|nt|nsive||or profit|provision|||provision|
||||||income|||||||
|I. Joint ventures||||||||||||
|Shenzhen||||||||||||
|Haohao||||||||||||
|Property|4,397,840|||347,953.3||||||4,745,794||
||.88|||5||||||.23||
|Leasing||||||||||||
|Co., Ltd.||||||||||||
|Shenzhen||||||||||||
||4,061,958|||||||||4,061,958|266,654.9|
|Xieli||||||||||||
||.96|||||||||.96|9|
|Automobi||||||||||||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
|||||||
|-|-|-|-|-|-|
|le Co.,||||||
|Ltd.||||||
||8,459,799|347,953.3||8,807,753|266,654.9|
|Subtotal||||||
||.84|5||.19|9|
|II. Associated enterprises||||||
|Shenzhen||||||
|Changlian||||||
|fa||||||
||1,871,377|||1,938,153||
|Printing||66,776.03||||
||.09|||.12||
|and||||||
|dyeing||||||
|Company||||||
|Jordan||||||
|Garnent|3,384,014|-308,236.||3,075,778||
||.49|16||.33||
|Factory||||||
|Yehui||||||
|Internatio||||||
||9,430,732|836,149.3|-211,450.|10,055,43||
|nal Co.,|.63|0|51|1.42||
|Ltd.||||||
|Subtotal|14,686,12|594,689.1|-211,450.|15,069,36||
||4.21|7|51|2.87||
||23,145,924.05|942,642.5|-211,450.|23,877,116.06|266,654.99|
|Ttotal||||||
|||2|51|||

 4.Business income and Business cost
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Items|||||
||Income|Cost|Income|Cost|
|Main Business|29,952,072.64|4,007,116.78|29,699,808.94|3,576,177.12|
|Other Business|1,646,987.54|1,646,987.54|1,827,380.09|1,827,380.11|
|Total|31,599,060.18|5,654,104.32|31,527,189.03|5,403,557.23|

 5.Investment income
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Income from long-term equity investment|||
||80,000.00||
|measured by adopting the Cost method|||
|Income from long-term equity investment|||
||2,039,333.34|1,029,521.87|
|measured by adopting the Equity method|||
|Investment income received from holding of|||
||147,859.95|1,432,892.22|
|available-for –sale financial assets|||
|Investment income arising from disposal of|||
|||44,444,187.39|
|long-term eqiuty investments|||

Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2016
||||
|-|-|-|
|Total|2,267,193.29|46,906,601.48|

 XIII. 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|-20,770.93||
|Govemment subsidies recognized in|||
|currentgain and loss(excluding those closely|||
||2,165,711.40||
|related to the Company’s business and|||
|granted under the state’s policies)|||
|Other non-business income and expenditures|||
||132,449.53||
|other than the above|||
|Less: Influenced amount of income tax|-3,436.95||
|Total|2,280,826.95|--|

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||
|Profitofreportperiod|Weightedaverageretureoneqiuty(%)|Basicearningspershare(R|Diluted eqrnings per|
|||MB/share）|share(RMB/share)|
|Net profit attributable to the||-0.06|-0.06|
|Common stock shareholders of|-1.40%|||
|Company.||||
|Net profit attributable to the||||
|Common stock shareholders of||||
||-1.51%|-0.0639|-0.0639|
|Company after deducting of||||
|non-recurring gain/loss.||||

3.The differences between domestic and international accounting standards
（1）Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.
□ Applicable√Not applicable
（2）Discrepancy in net profit and net assets as disclosed in the financial report respectively according to the accounting standards outside Mainland China and CAS
□ Applicable √Not applicable