ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Report 2017
August 26,2017
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 I. Important Notice, Table of Contents and Definitions
The Board ofDirectors，the Supervisory Committee, the directors, the supervisors, and executives of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of theReport.
Mr.Zhu Jun, The Company leader, Mr. Zhu Jun, Chief financial officer and the Mr.Mu Linying, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completenessofthefinancialreportenclosedinthesemi-report.
AllthedirectorsattendedtheboardmeetingforthereviewofthisReport.
I.Concerning the forward-looking statements with future planning involved in the Report, they do notconstitute a substantialcommitmentforinvestors,investorsshouldbecautiouswithinvestmentrisks.
II.The company to remind the majority ofinvestors，Securities Time, China Securities Journal, Securities Daily,ShanghaiSecuritiesNews,HongkongCommercialDailyandJuchaoWebsit（ehttp://www.cninfo.com.cn）arethe media for information disclosure appointed by the Company, all information under the name of the Company disclosedontheabovesaidmediashallprevail,andinvestorsareadvisedtoexercisecautionofinvestmentrisks. TheCompanyhasnoplanofcashdividendscarriedout,bonusissuedandcapitalizingofcommonreserveseither. This Report has been prepared in both Chinese and English. In case of any discrepancy,the Chinese version shall prevail.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 Table of Contents
I.ImportantNoticeandDefinitions
II.CorporateProfileandKeyFinancialResults
III.BusinessProfile
IV.PerformanceDiscussionandAnalysis
V.ImportantEvents
VI.ChangeofsharecapitalandshareholdingofPrincipalShareholders
VII.SituationofthePreferredShares
VIII.InformationaboutDirectors,SupervisorsandSeniorExecutives
IX.CorporateBonds.
X.FinancialReport
XI.Documentsavailableforinspection
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 Definition
||||
|-|-|-|
|Termstobedefined|Refersto|Definition|
|Company/TheCompany/ShenTextile|Refersto|ShenzhenTextile(Holdings)Co.,Ltd|
|ArticlesofAssociation|Refersto|ArticlesofAssociationofShenzhenTextile(Holdings)Co.,Ltd|
|Actualcontroller/NationalAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernment|Refersto|NationalAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernment|
|TheControllingshareholder/ShenzhenInvestmentHoldingCo.,Ltd.|Refersto|ShenzhenInvestmentHoldingCo.,Ltd.|
|ShenchaoTechnology|Refersto|ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.|
|ShengboOptoelectronic|Refersto|ShenzhenShengboOptoelectronicTechnologyCo.,Ltd.|
|KunshanJinlin|Refersto|KunshanLinlinOptoelectronicMaterialCo.,Ltd.|
|ZhejiangJinhao|Refersto|ZhejiangJinhaoOptoelectronicMaterialCo.,Ltd.|
|“CSRC”|Refersto|ChinaSecuritiesRegulatoryCommission|
|CompanyLaw|Refersto|CompanyLawofthePeople’sRepublicofChina|
|SecuritiesLaw|Refersto|SecuritiesLawofthePeople’sRepublicofChina|
|TheReport|Refersto|2017Semi-AnnualReport|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 II. Corporate Profile and Key Financial Results
I.Company Information
|||||
|-|-|-|-|
|Stockabbreviation|ShenTextileA,ShenTextileB|Stockcode：|000045、200045|
|Stockexchangeforlisting|ShenzhenStockExchange|||
|NameinChinese|深圳市纺织(集团)股份有限公司|||
|Chineseabbreviation(Ifany)|深纺织|||
|Englishname(Ifany)|SHENZHENTEXTILE （HOLDINGS） CO.,LTD|||
|Englishabbreviation(Ifany)|STHC|||
|LegalRepresentative|ZhuJun|||

II.Contact person andcontact manner
||||
|-|-|-|
||Boardsecretary|SecuritiesaffairsRepresentative|
|Name|JiangPeng|LiZhenyu|
|Contactaddress|6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen|6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen|
|Tel|0755-83776043|0755-83776043|
|Fax|0755-83776139|0755-83776139|
|E-mail|jiangp@chinasthc.com|lizy@chinasthc.com|

III.Other
(1)WaytocontacttheCompany
Whetherregistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanychangedin reportingperiodornot
□Applicable□√NotApplicable
Theregisteredaddress,officeaddressandtheirpostalcodes,websiteaddressandemailaddressoftheCompany didnotchangeduringthereportingperiod.Thesaidinformationcanbefoundinthe2016AnnualReport.（2）Informationinquiry
Whetherinformationdisclosureandpreparationplacechangedinreportingperiodornot
□Applicable√Notapplicable
Noneoftheofficialpresses,website,andplaceofenquiryhasbeenchangedinthesemireportperiod.Fordetails
pleasefindtheAnnualReport2016.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 IV.Summary ofAccounting data andFinancialindex
MaytheCompanymakeretroactiveadjustmentorrestatementoftheaccountingdataofthepreviousyears□Yes√No
|||||
|-|-|-|-|
||Reportingperiod|Sameperiodoflastyear|YoY+/-（%）|
|Operatingincome（RMB）|739,337,756.87|552,157,585.56|33.90%|
|Netprofitattributabletotheshareholdersofthelistedcompany（RMB）|14,457,841.63|-30,097,851.40|148.04%|
|Netprofitafterdeductingofnon-recurringgain/lossattributabletotheshareholdersoflistedcompany（RMB）|-4,286,186.35|-32,378,678.35|86.76%|
|Cashflowgeneratedbybusinessoperation,net（RMB）|-98,176,400.94|-39,316,195.34|149.71%|
|Basicearningpershare(RMB/Share)|0.03|-0.06|150.00%|
|Dilutedgainspershare(RMB/Share)(RMB/Share)|0.03|-0.06|150.00%|
|WeightedaverageROE(%)|0.61%|-1.40%|1.84%|
||Asattheendofthereportingperiod|Asattheendoflastyear|YoY+/-（%）|
|Totalassets（RMB）|4,071,838,673.13|4,119,586,266.47|-1.16%|
|Netassetsattributabletoshareholderoflistedcompany（RMB）|2,353,937,989.03|2,339,554,176.31|0.61%|

V.Differences between accounting data under domesticandoverseas accountingstandards 1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chineseaccountingstandards.
□Applicable√Notapplicable
Nodifference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chineseaccountingstandards.
□Applicable√Notapplicable
TheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeign accountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
VI.Items andamountof deducted non-current gainsand losses
√Applicable□Notapplicable
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 In RMB
||||
|-|-|-|
|Items|Amount|Notes|
|Non-currentassetdisposalgain/loss(includingthewrite-offpartforwhichassetsimpairmentprovisionismade)|-1,771.59||
|Govemmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies)|5,660,961.90||
|Gain/lossonentrustingotherswithinvestmentorassetmanagement|20,808,333.32||
|Gain/lossonContingenteventsirrelevanttotheCompany’snormalbusiness|418,132.96||
|Othernon-businessincomeandexpendituresotherthantheabove|5,593,047.35||
|Less:Influencedamountofincometax|1,506,457.54||
|Influencedamountofminorshareholders’equity(aftertax)|12,228,218.24||
|Total|18,744,027.98|--|

For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the ExplanatoryAnnouncement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurringgainsandlosses,itisnecessarytoexplainthereason.
□Applicable√Notapplicable
NoneofNon-recurringgain/lossitemsrecorgnizedasrecurringgain/loss/itemsasdefinedbytheinformationdisclosureexplanatoryAnnouncementNo.1-Non–recurringgain/lossinthereportperiod.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 III. Business Profile
Ⅰ.MainBusinesstheCompanyisEngagedinDuringtheReportPeriod
Whetherthecompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustry
No
In 2016, the company's main businesscovered suchthe high andnew technology industry as representedby LCD polarizer,itsownpropertymanagementbusinessandtheretainedbusinessofhigh-endtextileandgarment Polarizer is the upstream raw material for liquid crystal panel, also is one of the key materials for flat panel display industry,andit has beenwidelyused in smart phones, liquid crystaldisplay paneloftablet computers and TVs and so forth, OLED display panel, instrumentation, sun glasses, filter of photographic equipments and so on many fields. Thecompany’s five existing production lines of polarizer with mass production have products covered the fields such as TN, STN, TFT, OLED, 3D, dye plate, optical film for touch screen, and the products mainly used in TV, NB, navigator, monitor, automotive, industrial control, instrumentation, smart phones, wearable devices, 3D glasses, sunglasses and so forth products, becoming the qualified supplier to Huaxing Optoelectronic,BOE,Ivo,ShenchaoOptoelectronic,LGDandsoforthpanelcompanies.
During the reporting period, first, the company promoted the construction of Line 6 project according to the plan and currently it entered the test climbing stage; second, continued to maintain and expand cooperation with existingcustomerswhileacceleratedthedevelopmentofnewmodelstosupportthereleaseofcapacityandreduce costs; third, sped up the whole lines and released the capacity, enhanced the quality and reduced the energy consumption, actively explored the replacement and introducing of raw materials, and reduced the production costs; fourthly, continued to do a good job in the research and development and innovation, made the optimized transfer fromthe forward-looking technology developmentto thepracticaltechnology,andmade thegoodquality management,after-salesserviceandotherwork.
Thedomesticlarge-scale,denselyfastconstructionofthenewproductionlineshasbroughtabroadmarketspace,thusthe demandofpolarizeralsoshowedahighgrowthrate.Currently,anumberof19productionlinesoflowgenerationLCDhasbeenput intooperation,withatotalcapacityof2.563millionpieces/month,andanumberof8productionlinesof8.5Gorabovegeneration LCDhasbeenputintooperation,withthetotalinvestmentreachedRMB211.7billionandtotalcapacityof0.72million
pieces/month.Meanwhile,thereare8productionlinesofhighgenerationLCDthatareunderconstructionorundertheplanof construction,withthatthetotalcapacitycanreach0.84millionpieces/monthwhenthoseprojectsarefinished.Bythetime,China willbecometheworld'slargestproductionbaseoftheliquidcrystalpanel,whichwillenablethedemandofkeybasicmaterials includingpolarizertohaveafastgrowth.By2018,it'sexpectedthattheannualdemandforpolarizerwillincreasefromthecurrent 125millionsquaremetersto220millionsquaremeters,buttheproductioncapacityisestimatedat150millionsquaremeters,thus thegapbetweensupplyanddemandwillmaketheindustryhaveamediumandlongtermdevelopmentopportunity.Inthefuture, relyingonmorethan20yearsofindustrialoperationexperienceandgeographicaladvantages,thecompanywillfullytapintothe resourceadvantagesofstate-ownedenterpriseandtheinstitutionaladvantagesofprivateenterprise,continuetomaketheresearch anddevelopmentandcultivatetalents,activelyseekfurtherdevelopmentafterthereform,thusseizingthemarketopportunitiesand integratingtheindustrialresourcestomakeastronger,biggerandbetterShengboOptoelectronics.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017Ⅱ.Major Changes inMainAssets
1.MajorChangesinMainAssets
|||
|-|-|
|Mainassets|Majorchanges|
|Equityassets|Nomajorchanges|
|Fixedassets|Nomajorchanges|
|Intangibleassets|Nomajorchanges|
|Constructioninprocess|ConstructioninprocessattheendofthereportingperiodincreasedbyRMB133.135millioncomparedtothebeginningoftheperiod,anincreaseof111.13%,whichwasmainlyduetotheincreaseofinvestmentforthesecond-phaseprojectofNo.6lineofTFT-LCDpolarizer.|
|Advancepayment|TheamountofprepaymentsincreasedbyRMB20.4304millionor301.63%ascomparedwiththebeginningoftheperiod,whichwasmainlyduetotheincreaseinprepaymentforthepurchaseofgoodsandmaterials.|
|Interestreceivable|TheinterestreceivableattheendoftheperiodincreasedbyRMB3.9282millionor59.04%ascomparedwiththebeginningoftheperiod,whichwasmainlyduetotheincreaseofinterestreceivableinstructureddepositsandtrustwealthmanagement.|
|Otheraccountreceivable|OtherreceivablesincreasedbyRMB36.5871millionor54.39%ascomparedwiththebeginningoftheperiod,whichwasmainlyduetotheincreaseininvestmentintechnicalandmanagementservicesofthewholeprocessofconstructionperiodandputtingintooperationandmassproductionperiodoflightguideplateprojectandreflectingfilmprojectofKunshanJinlinandZhejiangJinhao.|

2.MainConditionsofOverseasAssets
□Applicable√Notapplicable
Ⅲ.Analysis Oncore Competitiveness
Whetherthecompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustry
No
（1）Technologyadvantages.ShengboOptoelectronicisthefirstdomesticnationalhigh-techcompanywhich entered into theR&D and production of the polarizer, and it has more than 20 years of operational experience of the polarizerindustry，The products include monochrome TN type, STN type, IPS-TFT type, VA-TFT type, vehicle-mounted industrial-control display, flexible display, polarizer for 3D stereo and sunglasses, optical film for touch screen etc., and the company possesses the proprietary whole-set technology of polarizer which can satisfy the customers' needs and owns various kinds of independent intellectual property rights of new products.
Bytheendofthereportingperiod,thecompanyappliedfor73inventionpatentsandwasauthorizedwith54items,
among which: 15 domestic invention patents(7 patents got authorized); 52 domestic utility model patents(44
patents got authorized); 1 overseas invention patent(0 patents got authorized); 9 overseas utility model patents(3
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 patents got authorized). There were 3 national standards and 2 industrial standards that were developed by the company are approved and then will be implemented. The company, possessing the two technology platforms “Shenzhen polarizing materials and engineering laboratory" and "Municipal research and development center", focusedon theR&D and theindustrialization ofthe coreproduction technology of LCD polarizer,the developing and industrialization of the new products of OLED polarizer and the “domestication” research on the production materials of polarizer.Through the introductionof various types of sophisticated testing equipments to perfectthe test means of small-scale test and medium-scale test, further by improving the incentive system of research and development and building the collaborative innovation platform of “Industry-Study-Research-Utilization” and so forthmeans,thecompanycomprehensivelyenhancedthelevelofresearchanddevelopment.
（2）Talents advantages. The company has the management team and the senior technical team with strong technical ability, enduring cooperative spirit, rich experience and international vision on the polarizer. The companyhad engaged overseastechnicalpersonnelwhohave greatexperiences onadvancedpolarizer production and established the technology management team with its own technical team and complemented by engaging foreign technical personnel, and via the combination of independent innovation and technology providing by engaged foreign personnelto accumulate technology,UponTalents Advantages, the company has establishedand accumulated the first-mover advantages in terms of brand, technology, operation and management. Through the perfection of assessment system and remuneration system, the company centers on the incentive remuneration toR&Dstaffsandtechnicalstaffsandgivesafullplaytotheroleoftalentsintheinnovation-driven.
（3）Market advantages. The company has good customer groups not only in domestic market but in foreign market,comparedwithforeignadvancedcounterparts,thebiggestadvantageliesinthelocalizationforsupporting, close to the panel market, as well as the strong support of the national policy. As to the market development, centered in the production material control, extended to both ends to link the procurement and the market, established a rapid response mechanism, Fully utilize the advantages of localization, adopts the customer development strategy of "method of prescription", and strengthens the point-to-point professional services with theguidanceoftechnology,thustolayasolidfoundationfortheproductmarketing.
(4) Quality advantages. The company always adhered to the quality policy of "Satisfying customer demands and pursuing excellent quality" and focused on product quality control, thus the product quality has larger advantages compared with other similar-kind domestic companies. The company introduced a modern quality management system,withtheproductspassedtheISO9001qualitymanagementsystem,ISO14001environmentalmanagement system, OHSAS18000, QCO80000 system certification and SGS testing, was in line with the ROHS environmental protection requirements, and with standardized processes of raw materials supplying, production-manufacturing, marketing, salesandcustomer services forensuringthestabilityoftheproductquality. The company had increased the automatic detecting and marking equipments in the beginning section and the ending section, strictly controlled the product quality and improved the product utilization rate and product managementefficiency.
（5）Managementadvantages.ShengboOptoelectronichasaccumulatedrichmanagementexperiencesinmore than 20 years in the manufacturing of polarizer, possessing the home most advanced control technology of the production management process of the polarizer and quality management technology and the stable raw material procurement channel so forth management systems. The company had carried out comprehensive benchmarking work, organized the management personnel to learn advanced experiences from customers and peers to force the elevation of management ability, and drew on the foreigncompany’s management experiences of polarizer, optimized the company's organizational structure, reduced the managerial hierarchy and further enhanced the company's management efficiency.After the introductionof the strategic investor, thecompany fully taps into the mechanism advantages of private enterprise, specifies the job responsibilities and inspires employees by linking
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 with the company's actual business profit, thus to realize the deep integration of the corporate value and the employees'values,furtherinvigoratingthenewvitalityofbusinessoperationanddevelopment.
（6）Policy advantages. The polarizer industry, which belongs to the industries encouraged by the Chinese government, is included in the strategic emerging industries for boosting the future economic and social development. Thecompany’s polarizer project won several times of national and provincial policy-support and funds support, and as the key raw material project of the upstream industry of new display devices, it enjoys the preferential policies of exemption for import duties on the self-used production materials which cannot be manufacturedinChina.Meanwhile,thecompanystrengthenedthemanagementonsuppliers,perfectedtheoverall procurement strategy, strictly controlled the number of suppliers while drawing in competition mechanism, actively followed-up the substitution work for many kinds of raw materials and further reduced the production coststoimprovethecompetitivenessofproducts.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 IV. Performance Discussion and Analysis
Ⅰ.General
In the first half of 2017, the company deepened the reform, persistently adhered to the transformation development, strongly promoted the construction of No. 6 line project of polarizer, actively implemented the introducing results, fully utilized the flexibility of mixed ownership, constantly stimulated the operating vitality, thusthe state ofoperationofthe threemainbusiness weresteadyandrising.Overall,the polarizer productionand management was improved, the profitability of property business was stable, and the textile and other trade business showed a big growth. During the reporting period, the Company realized the operating income of RMB 739.3378 million, representing an increase of RMB187.1802 million or33.9% over the same period of last year; the total profit was RMB 20.2794 million, representing an increase of RMB 46.14 million or178.42% over the sameperiodlastyear;thenetprofitswasRMB14.4578million,representinganincreaseofRMB44.5557million or148.04% over the same period last year. The main reason for the company's turnaround and gaining profits: first, the Subsidiary Shenbo Optoelectronic improved the production efficiency of polarizer, improved the yield and reduced the costs, thus the gross margin increased; Second, the appreciation of Yen was narrowed compared with the same periodlastyear, thustheexchange losses decreasedcomparedwith the same periodlastyear;third, the income of trust wealth management increased, leading to the increase in non-recurring gains and losses over thesameperiodlastyear.
Reviewingthefirsthalfof2017,thecompanyfocusedonthekeywork,withcontentsasfollows:
(1) Comprehensively enhanced the operating ability and the researching development. ability of the polarizer business
During the reporting period,firstly, the company sped upthe whole lines and released the capacity, enhanced the quality and reduced the energy consumption, actively explored the replacement and introducing of raw materials,andreducedtheproductioncosts;secondly,thecompanycontinuedtomaintainandexpandcooperation with existing customers while accelerated the development of new models to support the release of capacity and reduced costs; thirdly, the company formulated the broaden scheme of cargo-delivery specifications and sped up the product turnover, while enhanced the quality management, after-sales service to reduce the rate of return of goods. During the reporting period, the operation and production of polarizer of the company was improved, and thegrossmarginofpolarizerbusinessincreased.
At the same time, the company increased the intensity of independent research and development. During the reporting period, the company applied for a total of four patents (2 domestic utility model patents, 1 Japan utility modelpatentand1SouthKoreautilitymodelpatent),gettingauthorizedwith2patents(utilitymodelpatent),and there were three invention patents entered the substantive examination. The two national standards-"Determination of Optical Compensation value for Polarizer" and "Test Method for adhesion force of the optical thin-film coating for polarizer" developed and set up by the company had been officially implemented fromMay1,2017.
(2)PromotedtheconstructionofLine6projectaccordingtotheplan
During the reporting period, according to the construction schedule of line 6, the purification project and the procurement and installation were completed, as well as the pretreatment, extension machine, linkage test of the coating machine and the preparation of the extended samples were completed. Currently, it's undergoing the whole production line commissioning and the sample testing, and it's expected that the installation,
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 commissioning and trial production and other work of No.6 line will be completed in this year.It may have the conditionofquantityproduction.
(3)Stableoperationstatusofthepropertyenterprises
During the reporting period, the company further strengthened the management standards of property enterprises and actively promoted the work of hidden danger check and the rectification work for safety production; secondly, the company combined the national policy of mass entrepreneurship and innovation, fitted the market demand and tendency, soundly did the renovation work in Huaqiang North Area, thus provided the conditionsforthecontinuousenhancement oftheoperatingefficiency;thirdly, Guan Huabuildingwascompleted and the filing procedure of project completion was completed, and it's planned to do a good job in the business invitation andleasingworkin thesecondhalf ofthe year,making itbecomea newgrowth pointof thecompany's propertyincome.
(4)Continuouslyimprovedthe"13thFive-Year"strategicplanning
Duringthereportingperiod,accordingtothemanagementanddevelopmentarrangementaftertheintroduction of strategic investors, the company further adjusted and improved the "13th Five-Year" strategic planning, which had been approved by the expert review meeting. In the second half of the year, the company will, according to the "13th Five-Year" strategic planning, arrange the relevant departments to do in-depth study and formulate the concretemeasures,soastoimplementitassoonaspossible.
(5)Alwaysdidagoodjobinsafeproduction,andmaintainingtheharmonyandstabilityoftheenterprise During the reporting period, the Company persistently did the work to investigate and control the hidden dangers in production safety, thus ensured the steady and safety production. The safety checks organized by the company identified 90 hidden danger, which had been basically rectified; meanwhile, the company comprehensively organizedthe rentalpropertysafety hiddendanger investigationandremediationwork, andafter investigation, a total of 96 safety hidden danger were identified, and the company formulated a rectification program targeted on the hidden safety danger; the company had responded positively to the deployment and requirements of the "safety production month" in 2017, formulated the "safety production month" program and issued it and implemented it, then as of the end ofJune, the rectification had removed 82 hidden danger, with therectificationratereached95%,sotheeffectwasobvious.
2.Mainbusinessanalysis
Refertorelevantcontentsof“1.Summarization”in“DiscussionandAnalysisofManagement”.
Changesinthefinancialdata
In RMB
||||||
|-|-|-|-|-|
||Thisreportperiod|Sameperiodlastyear|YOYchange（%）|Causechange|
|Operatingincome|739,337,756.87|552,157,585.56|33.90%|Duetosignificantincreaseinothertradeincome|
|Operatingcost|677,617,195.79|511,249,697.64|32.54%|Duetosignificantincreaseinothertradeincome|
|Saleexpenses|4,007,043.14|4,516,009.63|-11.27%||
|Administrativeexpenses|40,846,568.49|46,124,255.12|-11.44%||
|Financialexpenses|-12,037,356.58|8,972,817.56|-234.15%|TheexchangelossesnarrowedconsiderablyastheYen|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||
|-|-|-|-|-|
|||||appreciationnarrowed|
|Incometaxexpenses|7,742,958.27|4,237,195.44|82.74%|Duetotheprofitsincrease|
|R&DInvestment|10,940,877.48|15,805,570.17|-30.78%|TheR&Dinvestmentinthefirsthalfoftheyeardecreased,it'sexpectedthatwillincreaseinthesecondhalfoftheyear|
|Cashflowgeneratedbybusinessoperation,net|-98,176,400.94|-39,316,195.34|-149.71%|MainlyduetothepaymenttotheprojectsofKunshanJinlinandZhejiangJinHao|
|Netcashflowgeneratedbyinvestment|194,444,447.29|33,062,688.27|488.11%|Theproceedsinthestructuraldepositsandtrustwealthmanagementincreasedoverthesameperiodlastyear|
|Netcashflowgeneratedbyfinancing|-8,077,450.21|-78,059,653.87|-89.65%|Cashoutflowsfordebtrepaymentweresubstantiallylowerthanlastyear|
|Netincreasingofcashandcashequivalents|87,522,186.89|-83,369,088.81|204.98%|Duetothecombinedimpactoftheabove-said|

Majorchangesinprofitcompositionorcourcesduringthereportperiod
□Applicable√Notapplicable
TheprofitcompositionorsourcesoftheCompanyhaveremainedlargelyunchangedduringthereportperiod. Breakdownofmainbusiness
In RMB
||||||||
|-|-|-|-|-|-|-|
||Operatingrevenue|operatingcosts|Grossprofitrate(%)|Increase/decreaseofreverseinthesameperiodofthepreviousyear(%)|Increase/decreaseofprincipalbusinesscostoverthesameperiodofpreviousyear(%)|Increase/decreaseofgrossprofitrateoverthesameperiodofthepreviousyear(%)|
|Domesticandforeigntrade|200,455,901.49|197,195,626.83|1.63%|-0.41%|-1.05%|0.63%|
|Manufacturing|318,634,496.34|297,660,122.29|6.58%|4.69%|-0.02%|4.40%|
|LeaseandManagementofProperty|44,151,381.93|12,641,846.17|71.37%|-0.25%|4.05%|-1.18%|
|Product|||||||
|IncomefromLeaseandManagementof|44,151,381.93|12,641,846.17|71.37%|-0.25%|4.05%|-1.18%|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||
|-|-|-|-|-|-|-|
|Property|||||||
|Incomefromtextile|11,243,368.26|11,414,078.26|-1.52%|29.52%|19.22%|8.77%|
|Polarizersheet|377,252,892.13|355,110,897.73|5.87%|1.85%|-1.95%|3.65%|
|IncomefromTrading|130,594,137.44|128,330,773.13|1.73%|3.19%|2.47%|0.68%|
|Area|||||||
|Domestic|384,324,928.13|358,905,193.32|6.61%|15.48%|14.61%|0.71%|
|Overseas|178,916,851.63|148,592,401.97|16.95%|-17.59%|-24.18%|7.22%|

 III.Non-corebusinessanalysis
√Applicable□Notapplicable
In RMB
||||||
|-|-|-|-|-|
||Amount|Ratiotothetotalprofitamount(%)|Notesofthecauses|Recurringornot|
|Investmentincome|22,955,035.39|113.19%|Obtainedthedividendsfromtheshare-participatingenterprise,obtainedcontractingfees,andgainsfromtrustwealthmanagement|Thedividendsfromtheshare-participatingenterpriseandthecontractingfeespossessthesustainability,buttheproceedsfromthetrustwealthmanagementdoesnotpossessthesustainability|
|Impairmentofassets|30,659,832.99|151.19%|Lossofinventorypricefalling,lossofbaddebts|Havethesustainability|
|Non-operatingincome|528,419.77|2.61%|Mainlyarethereceivedgovernmentgrants。|Donothavethesustainability|
|Non-operatingexpense|3,478.36|0.02%|Lossondisposalofnoncurrentassets|Donothavethesustainability|

IV.Analysisofassetsandliabilities
1.Significantchangesinassetcomposition
In RMB
||||||
|-|-|-|-|-|
|EndofReportingperiod||Endofsameperiodoflastyear|Changeinpercentage(%)|Reasonforsignificantchange|
|Amount|Asapercentageoftotalassets(%)||||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||
|-|-|-|-|-|-|-|
|Monetaryfund|1,021,411,279.17|25.08%|933,856,912.73|22.67%|2.41%|Maturityofstructureddeposits|
|Accountsreceivable|191,457,477.91|4.70%|220,222,019.41|5.35%|-0.65%||
|Inventories|295,893,311.56|7.27%|283,371,714.07|6.88%|0.39%||
|RealestateInvestment|175,368,491.53|4.31%|179,324,547.77|4.35%|-0.04%||
|Long-termequityinvestment|24,460,681.83|0.60%|24,849,311.00|0.60%|0.00%||
|Fixedassets|687,923,881.13|16.89%|723,685,287.56|17.57%|-0.68%||
|Constructioninprocess|252,939,183.42|6.21%|119,804,231.43|2.91%|3.30%|Cumulativeinvestmentinline6hasincreased|
|Short-termloans|37,917,157.74|0.93%|12,335,695.77|0.30%|0.63%||
|Long-termloans|80,000,000.00|1.96%|80,000,000.00|1.94%|0.02%||

2.AssetandLiabilitiesMeasuredbyFairValue
√Applicable□Notapplicable
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Amountatyearbeginning|Gain/lossonfairvaluechangeinthereportingperiod|Cumulativefairvaluechangerecordedintoequity|Impairmentprovisionsinthereportingperiod|Purchasedamountinthereportingperiod|Soldamountinthereportingperiod|Amountatyearend|
|Financialassets||||||||
|3.Financialassetsavailableforsale|8,378,730.50||433,722.52||||8,812,453.02|
|Subtotaloffinancialassets|8,378,730.50||433,722.52||||8,812,453.02|
|Total|8,378,730.50||433,722.52||||8,812,453.02|
|FinancialLiability|0.00||||||0.00|

Didgreatchangetakeplaceinmeasurementoftheprincipalassetsinthereportingperiod?
□Yes√No
3.RestrictedassetrightsasoftheendofthisReportingPeriod
Notapplicable
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 V. Analysis oninvestment Status
1.General
□Applicable√Notapplicable
2.ConditionofAcquiringSignificantShareRightInvestmentduringtheReportPeriod
□Applicable√Notapplicable
3.SituationoftheSignificantNon-equityInvestmentUndergoingintheReportPeriod
□Applicable√Notapplicable
4.InvestmentofFinancialAsset
（1）Securitiesinvestment
□Applicable√Notapplicable
TherewasnoinvestmentinsecuritiesbytheCompanyintheReportingperiod.
（2）InvestmentinDerivatives
□Applicable√Notapplicable
TheCompanyhadnoinvestmentinderivativesinthereportingperiod.
VI.Sales ofmajor assets andequity
1.Salesofmajorassets
□Applicable√Notapplicable
TheCompanyhadnosalesofmajorassetsinthereportingperiod.
2.Salesofmajorequity
□Applicable√Notapplicable
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017Ⅶ.Analysis oftheMain ShareHolding Companies andShareParticipating Companies√Applicable□Notapplicable
SituationofMainSubsidiariesandtheJoint-stockCompanywithover10%netprofitinfluencingtotheCompany In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Companyname|Type|Mainbusiness|Industry|Registeredcapital|Totalassets|Netassets|Turnover|Operatingprofit|NetProfit|
|ShenzhenLisiIndustrialCo.,Ltd.|Subsidiary|DomesticTrade,Propertymanagement|Wholesale|2,360,000.00|28,542,969.47|25,353,601.02|3,748,750.34|1,060,052.17|798,464.32|
|ShenzhenHuaqiangHotel|Subsidiary|Accommodation,businesscenter;|Hotelservices|10,005,300.00|33,302,609.20|26,644,830.65|5,230,728.46|1,619,933.68|1,222,578.95|
|ShenfangPropertyManagementCo.,Ltd.|Subsidiary|Propertymanagement|Realtyindustry|1,600,000.00|8,992,649.81|2,922,947.62|4,915,987.96|189,428.91|142,071.68|
|ShenzhenBeautyCenturyGarmentCo.,Ltd.|Subsidiary|Productionoffullyelectronicjacquardknittingwholeshape|Textileindustry|25,000,000.00|38,160,054.00|22,031,029.42|12,890,370.47|-1,525,783.98|-1,527,384.42|
|ShenzhenShengboOpotoelectricTechnologyCo.,Ltd|Subsidiary|Productionandsalesofpolarizer|Computers,communicationsandotherelectronicequipmentmanufacturing|583,333,333.00|3,177,317,849.03|2,731,324,885.43|377,252,892.13|-9,893,931.35|-9,376,931.35|
|ShenzhenShenfangImport&exportCo.,Ltd.|Subsidiary|Operatingimportandexportbusiness|Wholesale|5,000,000.00|94,593,510.71|12,904,261.00|304,197,983.58|6,097,888.42|4,573,416.32|
|Shengtou（HK）Co.,Ltd.|Subsidiary|Salesofpolarizer|Wholesale|HKD10,000|46,564,629.60|4,593,831.68|69,861,764.05|1,764,695.01|1,473,520.33|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 Subsidiariesobtainedordisposedinthereportingperiod
□Applicable√Notapplicable
VIII．Structured vehiclecontrolled bythe Company
□Applicable√Notapplicable
IX.Prediction ofbusiness performance forJanuary -September 2017
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanationofreason.
□Applicable√Notapplicable
X.RisksfacingtheCompany andcountermeasures
(1)Macroeconomicrisks
In2017,Chinawillfurtherpromotethesupply-sidereformandtheneweconomicdriving-forceandmodewill further replace the old economic driving-force and mode, and china's economic will run under the new normal with a reasonable range ofgrowth. As china's manufacturingindustry is facing the severe challenges of"two-way extrusion"bydevelopedcountries andotherdevelopingcountries,China ischangingfrom "WorldFactory 1.0"to "worldfactory2.0",andpartofitischangingtoworldfactory3.0.Theindustry,whichthecompanysituatedin,is an important part of the electronic information industry, so it will be strongly supported by the nation's policies. But in the future, if the stagnant world economy and China's economy is further downward, upon that influence, theuncertaintyandriskofthecompany'sfuturedevelopmentwillalsobeincreased.
The main measures: the company will pay close attention to and study the industry policy trends, strengthen the tracking and analysis of important information of the industry and timely grasp the development trend of the industry. Meanwhile, the company will spare no efforts to promote the polarizer project construction, constantly optimizetheproductstructure,revupthemarketdevelopmentability, enhancetheinternalcontrolandthecontrol ofoperatingrisk,thustoensurethesteadyandorderlydevelopmentofthecompany.
(2)Marketrisks
Due tothe characteristics ofdisplayend-productincludingrapidreplacementandupgrading andshortlife cycle, with the fierce competition in the industry, so there is higher requirement for the timely response ability of technology and products, while the price decline-trend also increasingly squeezes the profit space of upstream polarizerbusiness.Ifthecompany'stechnologyandproductscannottimelyrespondtotheneedsoftheapplication fieldsorthemarketcompetitionthatleadstolowerprices,thecompanywillgetanadverseimpact.
The main measures: the company will actively promote the project construction of the second phase of No.6 line TFT-LCD polarizer project, raise the production capacity, stabilize the customer confidence and improve the product bargaining power; meanwhile, the company will actively promote the work of introducing new product client, further tap into the market potential, improve the market share, continuously improve the production line yieldandtheutilizationrate,andenhancethecompetitivenessofproductstodealwiththemarketrisks.
(3)Raw-materialrisk
Currently, the key raw materials for producing polarizer, which are PVA film and TAC film, are basically
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 monopolizedbyJapanese.Thepriceofthefilm-materialisaffectedbythesuppliers'capacity,themarketdemand, theyenexchangerateandsoon,sothatwillfurtherimpactthecompany'sproductunitcosts.
The main measures: the company will actively explore the import substitution of raw materials and increase the intensity of independent intellectual property rights research and development; meanwhile, the company will continue to improve the production stability and continuity, enhance the rate of utilization and keep the product scrap rate at a low level, and reduce the product costs;the company will choose a way to lock forward exchange rate,inordertoavoidtheexcessiveexchangelossescausedbythefluctuationofexchangerate.
V. Important Events
I.AnnualGeneralMeetingandExtraordinaryShareholders’MeetingsintheReportingPeriod
1.AnnualGeneralMeeting
|||||||
|-|-|-|-|-|-|
|Meeting|Type|Investorparticipationratio|Conveneddate|Disclosuredate|Indextodisclosedinformation|
|Thefirstprovisionalshareholders’Generalmeetingin2017|Provisionalshareholders’GeneralMeeting|0.02%|January16,2017|January17,2017|AnnouncementNo.2017-05www.cninfo.com.cn|
|AnnualGenralMeetingof2016|AnnualGeneralMeeting|0.29%|June29,2017|June30,2017|AnnouncementNo.2017-32www.cninfo.com.cn|

2.PreferredstockholdersrestoredvotingrightstorequesttoconveneProvisionalShareholders’Meeting.□Applicable√Notapplicable
II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period
□Applicable√Notapplicable
Forthereportingperiod,theCompanyplansnottodistributecashdividendsorbonussharesorconvertcapital reserveintosharecapital.
III.Thefulfilledcommitments inthereportingperiodandunder-fulfillment commitmentsby theendofthe reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, seniormanagementpersonnelandotherrelatedparities.
√Applicable□Notapplicable
||||||||
|-|-|-|-|-|-|-|
|Commitment|Commitm|Type|Contents|Timeof|Peiodof|Fulfillme|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||
|-|-|-|-|-|-|-|
||entmaker|||makingcommitment|commitment|nt|
|Commitmentonsharereform|ShenzhenInvestmentHoldingsCo.,Ltd.|Sharereductioncommitment|AsShenzhenInvestmentHoldingsCo.,Ltd.,thecontrollingshareholderofthecompany,committedwhentherestricted-for-salesharesfromthesharesrestructuringwerelistedforcirculationinthemarket:i.iftheyplantosellthesharesthroughthesecuritiesexchangesysteminthefuture,andthedecreaseofthesharestheyholdreaches5%within6monthsafterthefirstdecrease,theywilldiscloseanannouncementindicatingthesalethroughthecompanywithintwotradingdaysbeforethefirstdecrease;ii.Theyshallstrictlyobservethe“GuidelinesonTransferofRestricted-for-saleOriginalSharesofListedCompanies”andtheprovisionsoftherelevantbusinessprinciplesofShenzhenStockExchange.|August4,2006|Sustainedandeffective|UnderFulfillment|
|Commitmentintheacquisitionreportorthereportonequitychanges|||||||
|Commitmentmadeupontheassetsreplacement|ShenzhenTextile(Holdings)Co.,Ltd.|Nomajorassetrestructuringcommitments|Thecompany,accordingtotherelevantprovisionsofMeasuresfortheAdministrationofMajorAssetRestructuringofListedCompanies,No.10GuidelinesforBusinessHandlingofListedCompanies-MajorAssetRestructuringandNo.9BusinessMemorandumofMainBoardInformationDisclosure-SuspendingStock-tradingforListedCompanies,committedthatthecompanyshallnotplanamajorassetrestructuringmatterin2monthscommencedfromthedateofterminationofthemajorassetrestructuringnamelythedateofannouncementonresumingthecompany'sstocktrading.|December19,2016|February18,2017|Fulfilled|
|Commitmentsmadeuponissuance|ShenzhenInvestmentHoldingsCo.,Ltd.|Commitmentsonhorizontalcompetition,relatedtransactionandcapitaloccupation|ShenzhenInvestmentHoldingsCo.,Ltd.signeda“LetterofCommitmentandStatementonHorizontalCompetitionAvoidance”whenthecompanyissuednon-publicstocksin2009.PursuanttotheLetterofCommitmentandStatement,ShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiary,subsidiariesundercontroloranyothercompaniesthathaveactualcontrolofitshallnotbeinvolvedinthebusinessthesameasorsimilartothoseShenzhen|October9,2009|Sustainedandeffective|UnderFulfillment|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||||
|-|-|-|-|-|-|
|||Textilecurrentlyorwillruninthefuture,oranybusinessesoractivitiesthatmayconstitutedirectorindirectcompetitionwithShenzhenTextile;iftheoperationsofShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiariesundercontrolorothercompaniesthathaveactualcontrolofitcompetewithShenzhenTextileinthesameindustryorcontradicttheinterestoftheissuerinthefuture,ShenzhenInvestmentHoldingsCo.,Ltd.shallurgesuchcompaniestoselltheequity,assetsorbusinesstoShenzhenTextileorathirdparty;whenthehorizontalcompetitionmayoccurduetothebusinessexpansionconcurrentlynecessaryforShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiariesundercontrolorothercompaniesthathaveactualcontrolofitandShenzhenTextile,ShenzhenTextileshallhavepriority.||||
|ShenzhenInvestmentHoldingsCo.,Ltd.|Commitmentsonhorizontalcompetition,relatedtransactionandcapitaloccupation|Thecommitmentsduringtheperiodnon-publicissuancein2012:1.ShenzhenInvestmentHoldings,asthecontrollingshareholderofShenzhenTextile,currentlyhasn'ttheproductionandbusinessactivitiesofinter-industrycompetitionwithShenzhenTextileoritsshare-holdingsubsidiary.2.ShenzhenInvestmentHoldingsanditsshare-holdingsubsidiariesorotherenterprisesownedtheactualcontrolrightscan'tbedirectlyandindirectlyonbehalfofanyperson,companyorunittoengageinthesameorsimilarbusinessinanydistrictsinthefuturebytheformofshare-holding,equityparticipation,jointventure,cooperation,partnership,contract,lease,etc.,andensurenottousethecontrollingshareholder'sstatustodamagethelegitimaterightsandinterestsofShenzhenTextileandothershareholders,ortogaintheadditionalbenefits.3.Iftherewillbethesituationofinter-industrycompetitionwithShenzhenTextileforShenzhenInvestmentHoldingsanditsshare-holdingsubsidiariesorotherenterprisesownedtheactualcontrolrightsinthefuture,ShenzhenInvestmentHoldingswillpromotetherelatedenterprisestoavoidtheinter-industrycompetitionthroughthetransferofequity,assets,businessandotherways.4.AbovecommitmentswillbecontinuouslyeffectiveandirrevocableduringShenzhenInvestmentHoldingsasthecontrollingshareholderofShenzhenTextileorindirectly|July14,2012|Sustainedandeffective|UnderFulfillment|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|||controllingShenzhenTextile.|
|Equityincentivecommitment|||
|Othercommitmentsmadetominorityshareholders|||
|Executedtimelyornot?|Yes||
|Ifthecommitmentsfailedtocompletetheexecutionwhenexpired,shouldspecificallyexplainthereasonsofunfulfillmentandthenetstageoftheworkingplan|No||

IV.Particulars aboutengagement anddisengagementof CPAs firm
Whetherthesemi-annualfinancialreporthadbeenaudited?
□Yes√Not
Thesemi-annualreportwasnotaudited.
V.Explanations given by board of directors and supervisory board regarding “ Modifiedauditor’s”Issued byCPAs firmforthereporting period
□Applicable√Notapplicable
VI. Explanations given by Board of Directors regarding “ Modifiedauditor’s Report” Issued forlastyear
□Applicable√Notapplicable
VII. Bankruptcy andrestructuring
□Applicable√Notapplicable
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 Nosuchcasesinthereportingperiod.
VIII. Legal matters
Signifieantlawsuitsorarbitrations
□Applicable√Notapplicable
Nosuchcasesinthereportingperiod.
Otherlegalmatters
□Applicable√Notapplicable
IX.Punishments andrectifications
□Applicable√Notapplicable
Nosuchcasesinthereportingperiod.
X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
□Applicable√Notapplicable
Nosuchcasesinthereportingperiod.
XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees
□Applicable√Notapplicable
Nosuchcasesinthereportingperiod.
XII.Material related transactions
1.Relatedtransactionsinconnectionwithdailyoperation
√Applicable□Notapplicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Relatedparties|Relationship|Typeoftrade|Subjectsoftherelatedtransactions|Principleofpricingtherelatedtransactions|Priceoftrade|AmountoftradeRMB0’000|Ratioinsimilartrades|Tradinglimitapproved（RMB’0000）|Whetherovertheapprovedlimitedornot(Y/N)|Wayofpayment|Marketpriceofsimilartradeavailable|Dateofdisclosure|Indexofinformationdisclosure|
|TianmaMicroelectronic|TheChairmanofthe|Saleproductsto|Salesofpolarizersheet|MarketPrinciple|Agreementprice|304.43|0.81%|600|No|Transfer|304.43|||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Co.,Ltd.|CompanywasViceChairman ofthecompany|relatedparties|||||||||||
|Total|||--|--|304.43|--|600|--|--|--|--|--|
|Detailsofanysalesreturnofalargeamount|||Notapplicable||||||||||
|Givetheactualsituationinthereportperiodwhereaforecasthadbeenmadeforthetotalamountsofroutinerelated-partytransactionsbytypetooccurinthecurrentperiod(ifany)|||Notapplicable||||||||||
|Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketrefernceprice(ifapplicable)|||Notapplicable||||||||||

2.Related-partytransactionsarisingfromassetacquisitionorsold
□Applicable√Notapplicable
NorelatedtransactionsbyassetsacquisitionandsoldfortheCompanyinreportingperiod.
3.Related-partytransitionswithjointinvestments
□Applicable√Notapplicable
NomainrelatedtransactionsofjointinvestmentoutsidefortheCompanyinreportingperiod.
4.Creditsandliabilitieswithrelatedparties
√Applicable□Notapplicable
Wasthereanynon-operatingcreditorliabilitywithanyrelatedparty?
√Yes□No
Duefromrelatedparties
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Relatedparties|Relationship|Causesofformation|Doesthereexistnon-operationcapitaloccupancy?|Openingbalance(RMB‘0000)|Newlyincreasedamountinthereportingperiod(RMB’0000)|Amountrecoveredinthereportingperiod(RMB’0000)|Interestrate|Interestinthereportingperiod(RMB’0000)|Endingbalance(RMB’0000)|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||||||
|-|-|-|-|-|-|-|-|
|ShenzhenTianmaMicroelectronicsCo.,Ltd.|TheChairmanoftheCompanywasViceChairmanofthecompany|Saleproducts|No|25.64|304.43|129.58|200.49|
|AnhuiHuapengTextileCo.,Ltd.|Sharingcompany|Contractfee|No|360|90|180|270|
|ShenzhenDailishiUnderwearCo.,Ltd.|Sharingcompany|Contractfee|No|30|50|80|0|
|Influenceoftherelatedrightsofcreditandliabilitiesuponthecompany’soperationresultsandfinancialposition||Inthereportperiod,IncreaseinvestmentincomeofRMB1.4million.||||||

Duetorelatedparties
||||||||||
|-|-|-|-|-|-|-|-|-|
|Relatedparties|Relationship|Causesofformation|Openingbalance(RMB’0000)|Amountnewlyincreasedinthereportingperiod(RMB’0000)|Amountrepaidinthereportingperiod(RMB’0000)|Interestrate|Interestinthereportingperiod(RMB’0000)|Endingbalance(RMB’0000)|
|ShenzhenXinfangKnittingCo.,Ltd.|Sharingcompany|Currentamount|24.48|||||24.48|
|ShenzhenXiangjiangTradeCo.,Ltd|Sharingcompany|Currentamount|4||4|||0|
|ShenzhenChanglianfaPrinting&dyeing Co.,Ltd.|Sharingcompany|Currentamount|84.65|||||84.65|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||||
|-|-|-|-|-|-|
|ShenzhenHaohaoPropertyLeasingCo.,Ltd|Sharingcompany|Currentamount|495.45|35|530.45|
|YehuiInternationalCo.,Ltd.|Sharingcompany|Currentamount|121.5|673.83|795.33|
|Shengbo（HK）Co.,Ltd.|Sharingcompany|Currentamount|31.5||31.5|
|ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.|Controlledbythesameparty|Interestpayable|4,280.54|164.08|4,444.62|
|Indluenceoftherelatedrightsofcreditandliabilitiesuponthecompany’soperationresultsandfinancialposition.||Inthereportperiod,IncreasefinancialinterestexpenseofRMB1.6408million.||||

5.Othersignificantrelated-partytransactions
√Applicable□Notapplicable
To ensure the construction progress of polarizer with TFT-LCD, Shenzhen Shengbo Optoelectronic Technology Co., Ltd., Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Development Bank, Shenzhen Branch, First Tower Subbranch signed “ Contract on Consigned Loan ” , of whose main content is: Shenzhen ShenchaoTechnology Investment Co., Ltd applied to the bank for 200 million RMB of construction of dedicated plant and auxiliary projects for polarizer with TFT-LCD for Shenzhen Shengbo Optoelectronic Technology Co., Ltd The term of the loan is 108 months from the day whenthe first installment of entrusted loan istransferredtotheaccountoftheCompany.Theinterestrateoftheentrustedloanistherateofcommercialloans with a term of 5 years quoted by People's Bank of China minus2%. In case of adjustment of such commercial loan rate, the rate of commercial loans with a term of 5 years after adjustment minus2% shall apply as interest rate of entrusted loan from the first day of the next month after the adjustment of basic interest rate. The term of theloanis108monthsfromthedaywhenthefirstinstallmentofentrustedloanistransferredtotheaccountofthe Company.AsofJune30,2017,TheCompanyactuallyreceivedaloanofRMB80million.
Websitefortemporarydisclosureoftheconnectedtransaction
||||
|-|-|-|
|Announcement|Dateofdisclosure|Websitefordisclosure|
|AnnouncementofrelatedTransactions|December12,2009|http//www.cninfo.com.cn.AnnouncementNo.2009-55|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|AnnouncementofResolutionsoftheSecondprovisionalshareholders’generalmeeting|December30,2009|http//www.cninfo.com.cn. AnnouncementNo.2009-57|
|AnnouncementofrelatedTransactionsprogress|July1,2010|http//www.cninfo.com.cn. AnnouncementNo.2010-26|

XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder andother related parties oftheCompany
□Applicable√Notapplicable
Thecompanywasnotinvolvedinthenon-operatingoccupationoffundsbythecontrollingshareholderandother relatedpartiesduringthereportingperiod.
XIV. Significantcontracts andexecution
1.Entrustments,contractingandleasing
(1)Trusteeship
□Applicable√Notapplicable
Notrusteeship,contractorleasingfortheCompanyinreportingperiod.
(2)Contract
□Applicable√Notapplicable
NoanycontractfortheCompanyinthereportingperiod.
(3)Lease
□Applicable√Notapplicable
NoanyleasefortheCompanyinthereportingperiod..
2.Guarantees
□Applicable√Notapplicable
Nosuchcasesinthereportingperiod.
3.Othersignificantcontract
□Applicable√Notapplicable
NoothersignificantcontractsfortheCompanyinreportingperiod.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 XV.Social responsibilities
1.Overviewoftheannualtargetedpovertyalleviation
The company has no precise social responsibility for poverty alleviation in theperiodand bas no follow-up plan either.
2.Majorenvironmentalprotection
TheListedCompanyanditssubsidiarywhetherbelongstothekeysewageunitsreleasedfromenvironmental protectiondepartment
Yes
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Company orsubsidiary name|Mainpollutantand specificpollutantname|Emissionway|Emissionportnumber|Emission portdistributioncondition|Emissionconcentration|Implemented pollutantemissionstandards|Totalemission|Verifiedtotalemission|Excessiveemissioncondition|
|ShenzhenShengboOpotoelectricTechnologyCo.,Ltd|Exhaustgas:non-methanetotalhydrocarbons|Altitudeemission|1|ThedischargeportislocatedontheeastsideoftheroofofBuildingNo.1|<100mg/m³|120mg/m³|840kg/d|1728kg/d|Nil|
|ShenzhenShengboOpotoelectricTechnologyCo.,Ltd|Wastewater：COD|Openchanneldischargeaftertreatment|1|Southeastsideofplantarea|<80mg/L|90mg/L|56kg/d|96kg/d|Nil|
|ShenzhenShengboOpotoelectricTechnologyCo.,Ltd|Exhaustgas:non-methanetotalhydrocarbons|Altitudeemission|3|hedischargeportisarrangedatthemiddlepartoftheroofofthebuilding|<100mg/m³|120mg/m³|840kg/d|1008kg/d|Nil|

Preventionandcontrolofpollutionfacilitiesconstructionandoperation
WastegasofPingshanplant:
The waste gas treatment facility adopted the RTO waste gas regenerative incineration process. The equipment started construction along with production equipment in 2011, and it was completed and put into use in 2012. Upon Taiwan Chinachem RTO manufacturer, adopted the three tower regenerative incineration for waste gas treatment, ithasbeenrunningfor 5years todate,andthe equipmentrunsstably andthe wastegas treatmenthasa good effect, which canfully meetthe emission requirements of discharge gas. Meanwhile, the equipmentadopted
the imported thermal storage material, with the heat storage effect reached90%, so that the equipment operation
had low energy consumption; after RTO treatment, the exhaust gas produced by the production process can meet
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 thedischargestandard.
WastewaterofPingshanplant:
The wastewater treatment facility adopted the biological method plus the physicochemical method process, and the system was built in 2011 along with the plant main body construction, and it was put into operation together with the production equipment in 2012. The equipment has been running stably, with low energy consumption, low maintenance and repair costs, high degree of automation and a good wastewater treatment effect, and the technical process has excellent shock resistance. The waste water produced by the production process can meet the environmental protection requirements of the discharge standard after the treatment by the wastewater treatmentfacility.
WastegasofLonghuafactory:
The waste gas treatment facility of Longhua factory has been running since 2013, and the discharge gas always meet the requirements of the relevant national laws and regulations. Being a state-owned listed company, the company has a strong social responsibility, so the company emphasizes the increase in investment of environmental protection. This year, the conventional waste gas treatment process was upgraded to the world's advanced rotary RTO process, which further reduced the pollutant emissions upon the basis of the standard discharge. The Rotary RTO processis the most advanced VOC waste gas treatment process atpresent. The Japan Sino-foreign Furnace Company was selected as the supplier for this RTO equipment, and the VOC removal rate of RTO waste gas of such equipment reached more than99%, the equipment runs stable and it has a high degree of automation. The waste gas produced by Longhua factory can be ensured to meet the discharge standard after thetreatmentbythesystem.
XVI.Other material events
√Applicable□Notapplicable
(1)ProgressinformationaboutthesecondphaseofNo.6lineTFT-LCDpolarizerproject
During the reporting period, according to the construction schedule of line 6, the purification project and the procurement and installation were completed, as well as the three main equipment linkage debugging and sample productionofline6werecompleted.It'scarryingoutthewholeproductionlinelinkagetestandsampletest,andit has enteredthe test climbingstage. It's expected thatthe installation, commissioningandtrial production ofline 6 will be completed this year. As of June 30, 2017, the accumulated investment for second phase of No.6 line project was RMB 475.3446 million, accounting for67.87% of the adjusted total investment of RMB 700.34 million. Thereinto, the use of raised funds was RMB 155.5327 million and the self-own funds and government fundsusedwereRMB265.0551million.Itmayhavetheconditionofquantityproduction.
(2)ProgressintheconstructionofGuanhuaBuilding
At the 11th meeting of the fifth session of the Board of Directors of the Company, the "Proposal about cooperative development and construction of Guanhua Building" was examined and approved, agreed that the company contributed RMB 42.21 million in cooperation with Hong Kong Qiao Hui Industrial Co., Ltd and Shenzhen Guanhua Printing& Dyeing Co., Ltd to develop and construct Guanhua Building project. The project construction started on October 15,2011, and currently, the construction project completion ofacceptance for the record was obtained on June 26, 2017, and it's undergoing the work such as the external wall decoration and the enclosureconstructionandthecompletionsettlementofprojectfunds.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 XVII. Material events of subsidiaries
√Applicable□Notapplicable
Mattersrelatingtothesigningofthecooperationagreementbyasubsidiary
During the reporting period, Shengbo Optoelectronics, a subsidiary of the Company, signed the "Cooperation Agreement of light guide plate production line project (Phase I) with Kunshan Jinlin in connection to the construction of light guide plate production line project (phase I) on June 6, 2017, and the subsidiary signed the "Cooperation Agreement of Liquid crystal reflective film production line project (Phase I) with Zhejiang Jin Hao in connection to the construction of the liquid crystal reflective film production line project (Phase I) on June 6, 2017.Thesigningoftheabovetwocooperationagreementsdoesnotinvolvetherelatedtransaction,norconstitute a major asset reorganization stipulated in the Measures for the Administration of Major Assets Reorganization of Listed Companies.The cooperation ofthe above projects is basedon equality, mutualbenefitandcomplementary advantages, and can give full play to Shengbo Optoelectronics in technology, management, project construction and other advantages. It's expected that it'll get RMB 15million project service fees in the light guide plate productionlineprojectandit'llgetRMB 13millionprojectservicefeesintheLCDreflective filmproductionline project, which will have a positive impact on the Company's operating performance. For details Juchao Website:（http://www.cninfo.com.cn.(AnnouncementNo.2017--29).
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 VI. Change of share capital and shareholding of Principal
Shareholders
I.Changes in share capital
1.Changesinsharecapital
Inshares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Beforethechange||Increase/decrease（+，-）|||||AftertheChange||
||Amount|Proportion|Shareallotment|Bonusshares|Capitalizationofcommonreservefund|Other|Subtotal|Quantity|Proportion|
|1.Shareswithconditionalsubscription|69,750|0.01%||||||69,750|0.01%|
|2.State-ownedlegalpersonshares|0|0.00%||||||0|0.00%|
|3.Otherdomesticshares|69,750|0.01%||||||69,750|0.01%|
|DomesticNatureshares|69,750|0.01%||||||69,750|0.01%|
|II.Shareswithunconditionalsubscription|506,452,099|99.99%||||||506,452,099|99.99%|
|1.CommonsharesinRMB|457,021,849|90.23%||||||457,021,849|90.23%|
|2.Foreignsharesindomesticmarket|49,430,250|9.76%||||||49,430,250|9.76%|
|III.Totalofcapitalshares|506,521,849|100.00%||||||506,521,849|100.00%|

 Reasonsforsharechanged:
□Applicable√Notapplicable
ApprovalofChangeofShares
□Applicable√Notapplicable
Ownershiptransferofsharechanges
□Applicable√Notapplicable
InfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributableto
commonshareholdersofCompanyinlatestyearandperiod
□Applicable√Notapplicable
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 Otherinformationnecessarytodiscloseforthecompanyorneedtodisclosedunderrequirementfromsecurity regulators
□Applicable√Notapplicable
2.Changeofshareswithlimitedsalescondition
□Applicable√Notapplicable
Ⅱ.Issuing and listing
□Applicable√Notapplicable
III. Shareholders andshareholding
In Shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Totalnumberofcommonshareholdersattheendofthereportingperiod||39,293|||Totalnumberofpreferredshareholdersthathadrestoredthevotingrightattheendofthereportingperiod(ifany)(note8)|||0||
|Particularsaboutsharesheldabove5%byshareholdersortoptenshareholders||||||||||
|Shareholders|Natureofshareholder||Proportionofsharesheld（%）|Numberofsharesheldatperiod-end|Changesinreportingperiod|Amountofrestrictedsharesheld|Amountofun-restrictedsharesheld|Numberofsharepledged/frozen||
|||||||||Stateofshare|Amount|
|ShenzhenInvestmentHoldingsCo.,Ltd.|State-ownedlegalperson||46.21%|234,069,436||0|0|||
|ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.|State-ownedLegalperson||3.18%|16,129,032||0|0|||
|AnhuiGuofuIndustrialInvestmentFundsMangementCo.,Ltd.|Domestic nonState-ownedLegalperson||0.67%|3,408,341||0|0|||
|SunHuiming|DomesticNatureperson||0.49%|2,460,226|16,700|0|0|||
|WangMincang|DomesticNatureperson||0.27%|1,377,236||0|0|||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||||||
|-|-|-|-|-|-|-|-|
|ZhuYe|DomesticNatureperson|0.26%|1,331,945|92,836|0|0||
|ZhengChungang|DomesticNatureperson|0.25%|1,260,005||0|0||
|SuYunze|DomesticNatureperson|0.19%|960,000||0|0||
|CentralHuijinAssetManagementCo.,Ltd.|State-ownedlegalperson|0.19%|958,300||0|0||
|HongFan|DomesticNatureperson|0.19%|952,600||0|0||
|Strategyinvestorsorgenerallegalpersonbecomestop10shareholdersduetorightsissued(ifany)(SeeNotes3)||Nil||||||
|Relatedoracting-in-concertpartiesamongshareholdersabove||ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.isawholly-ownedsubsidiaryofShenzhenInvestmentHoldingCo.,Ltd.andapersontakingconcertedaction.Exceptthis,theCompanydidnotwhetherthereisrelationshipbetweenthetoptenshareholdersholdingnon-restrictednegotiablesharesandbetweenthetoptenshareholdersholdingnon-restrictednegotiablesharesandthetop10shareholdersorwhethertheyarepersonstakingconcertedactiondefinedinRegulationsonDisclosureofInformationaboutShareholdingofShareholdersofListedCompanies.||||||
|Shareholdingoftop10shareholdersofunrestrictedshares||||||||
|Nameoftheshareholder||Quantityofunrestrictedsharesheldattheendofthereportingperiod||||Sharetype||
|||||||Sharetype|Quantity|
|ShenzhenInvestmentHoldingsCo.,Ltd.||234,069,436||||RMBCommonshares|234,069,436|
|ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.||16,129,032||||RMBCommonshares|16,129,032|
|AnhuiGuofuIndustrialInvestmentFundsMangementCo.,Ltd.||3,408,341||||RMBCommonshares|3,408,341|
|SunHuiming||2,460,226||||Foreignsharesplacedindomesticexchange|2,460,226|
|WangMincang||1,377,236||||RMBCommonshares|1,377,236|
|ZhuYe||1,331,945||||RMBCommonshares|1,331,945|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||
|-|-|-|-|
|ZhengChungang|1,260,005|RMBCommonshares|1,260,005|
|SuYunze|960,000|RMBCommonshares|960,000|
|CentralHuijinAssetManagementCo.,Ltd.|958,300|RMBCommonshares|958,300|
|HongFan|952,600|RMBCommonshares|952,600|
|Explanationonassociatedrelationshiporconsistentactionamongthetop10shareholdersofnon-restrictednegotiablesharesandthatbetweenthetop10shareholdersofnon-restrictednegotiablesharesandtop10shareholders|ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.isawholly-ownedsubsidiaryofShenzhenInvestmentHoldingsCo.,Ltd.andapersontakingconcertedaction.Exceptthis,theCompanydidnotwhetherthereisrelationshipbetweenthetoptenshareholdersholdingnon-restrictednegotiablesharesandbetweenthetoptenshareholdersholdingnon-restrictednegotiablesharesandthetop10shareholdersorwhethertheyarepersonstakingconcertedactiondefinedinRegulationsonDisclosureofInformationaboutShareholdingofShareholdersofListedCompanies.|||
|Explanationonshareholdersparticipatinginthemargintradingbusiness(ifany)(SeeNotes4)|TheCompanyShareholderWangMincangholds860,036sharesoftheCompanythroughstockaccountwithcredittransaction,TheCompanyShareholderZhuYeholds1,331,945sharesoftheCompanythroughstockaccountwithcredittransaction.|||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-backagreementdealinginreportingperiod.
□Yes√No
Thetoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldoftheCompanyhavenobuy–backagreementdealinginreportingperiod.
IV.Changeof thecontrolling shareholderor theactual controller
Changeofthecontrollingshareholderinthereportingperiod
□Applicable√NotApplicable
TherewasnoanychangeofthecontrollingshareholderoftheCompanyinthereportingperiod.
Changeoftheactualcontrollerinthereportingperiod
□Applicable√Notapplicable
TherewasnoanychangeoftheactualcontrolleroftheCompanyinthereportingperiod.
VII. Situation of the Preferred Shares
□Applicable√Notapplicable
TheCompanyhadnopreferredsharesinthereportingperiod
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 VIII. Information about Directors, Supervisors and Senior Executives I. Changeinshares heldby directors, supervisors andseniorexecutives
□Applicable√Notapplicable
Therewasnochangeinshareholdingofdirectors,supervisorsandseniormanagementstaffs,forthespecific informationpleaserefertothe2016AnnualReport.
II. Changes indirectors, supervisors and seniormanagement staffs
√Applicable□Notapplicable
||||||
|-|-|-|-|-|
|Name|Title|Type|Date|Reason|
|JinZenyuan|Director,CFO|Resigned|April13,2017|Jobchanges|
|FengJunbin|DeputyGM|Resigned|April17,2017|Jobchanges|
|DiYan|CFO|BeEmployed|April28,2017|FormerChiefFinancialOfficerleftoffice|
|LeKujiu|Deputy|BeEmployed|April28,2017|FormerDeputyGeneralManagerleft|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 IX. Corporate Bond
Whetherthecompanyhascorporatebondsthathavebeenpubliclyissuedandlistedonthestockexchange,and notyetdueorduebutnotfollycashedontheapprovaldateofannualreport
No
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 X. Financial Report
1.Auditreport
Hasthissemi-annualreportbeenaudited?
□Yes√No
Thesemi-annualfinancialreporthasnotbeenaudited.
II. Financialstatements
Currencyunitforthestatementsinthenotestothesefinancialstatements:RMB
1.Consolidatedbalancesheet
Preparedby：ShenzhenTextile(Holdings)Co.,Ltd.
June30,2017
In RMB
||||
|-|-|-|
|Items|Year-endbalance|Year-beginningbalance|
|Currentasset：|||
|Monetaryfund|1,021,411,279.17|933,856,912.73|
|Settlementprovision|||
|Outgoingcallloan|||
|Financialassetsmeasuredatfairvaluewithvariationsaccountedintocurrentincomeaccount|||
|Derivativefinancialassets|||
|Billreceivable|41,800,470.91|41,908,315.45|
|Accountreceivable|191,457,477.91|220,222,019.41|
|Prepayments|27,203,694.97|6,773,323.14|
|Insurancereceivable|||
|Reinsurancereceivable|||
|ProvisionsofReinsurancecontractsreceivable|||
|Interestreceivable|10,581,051.41|6,652,883.11|
|Dividendreceivable|||
|Otheraccountreceivable|103,859,623.65|67,272,556.72|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Repurchasingoffinancialassets|||
|Inventories|295,893,311.56|283,371,714.07|
|Assetsheldforsales|||
|Non-currentassetduein1year|||
|Othercurrentasset|1,154,910,595.58|1,428,043,157.76|
|Totalofcurrentassets|2,847,117,505.16|2,988,100,882.39|
|Non-currentassets：|||
|Loansandpaymentonother’sbehalfdisbursed|||
|Disposablefinancialasset|41,999,500.48|41,565,777.96|
|Expiredinvestmentinpossess|||
|Long-termreceivable|||
|Longtermshareequityinvestment|24,460,681.83|24,849,311.00|
|Propertyinvestment|175,368,491.53|179,324,547.77|
|Fixedassets|687,923,881.13|723,685,287.56|
|Constructioninprogress|252,939,183.42|119,804,231.43|
|Engineeringmaterial|||
|Fixedassetdisposal|10,418.34||
|Productionphysicalassets|||
|Gas&petrol|||
|Intangibleassets|39,425,858.86|39,698,654.32|
|R&Dpetrol|||
|Goodwill|||
|Long-germexpensestobeamortized|849,171.70|973,081.68|
|Defferedincometaxasset|1,743,980.68|1,584,492.36|
|Othernon-currentasset|||
|Totalofnon-currentassets|1,224,721,167.97|1,131,485,384.08|
|Totalofassets|4,071,838,673.13|4,119,586,266.47|
|Currentliabilities|||
|Short-termloans|37,917,157.74|12,335,695.77|
|LoanfromCentralBank|||
|Depositreceivedandholdforothers|||
|Callloanreceived|||
|Financialliabilitiesmeasuredatfairvaluewithvariationsaccountedinto|||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|currentincomeaccount|||
|Derivativefinancialliabilities|||
|Billpayable|||
|Accountpayable|134,519,813.42|175,461,715.72|
|Advancepayment|42,082,230.55|30,297,446.49|
|Sellingofrepurchasedfinancialassets|||
|Feesandcommissionsreceivable|||
|Employees’wagepayable|17,387,958.30|27,379,719.86|
|Taxpayable|9,166,018.05|13,995,726.19|
|Interestpayable|44,641,353.52|42,842,605.52|
|Dividendpayable|||
|Otheraccountpayable|145,748,929.54|147,108,590.19|
|Reinsurancefeepayable|||
|Insurancecontractprovision|||
|Entrustedtradingofsecurities|||
|Entrustedsellingofsecurities|||
|Liabilitiesheldforsales|||
|Non-currentliabilityduein1year||40,000,000.00|
|Othercurrentliability|||
|Totalofcurrentliability|431,463,461.12|489,421,499.74|
|Non-currentliabilities：|||
|Long-termloan|80,000,000.00|80,000,000.00|
|Bondpayable|||
|Including：preferredstock|||
|Sustainabledebt|||
|Long-termpayable|||
|Long-termpayableemployees’sremuneration|||
|Specialpayable|||
|Expectedliabilities|||
|Differedincome|107,793,823.19|110,045,784.62|
|Differedincometaxliability|||
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|187,793,823.19|190,045,784.62|
|Totalofliability|619,257,284.31|679,467,284.36|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Owners’equity|||
|Sharecapital|506,521,849.00|506,521,849.00|
|Otherequityinstruments|||
|Including：preferredstock|||
|Sustainabledebt|||
|Capitalreserves|1,837,205,251.95|1,837,205,251.95|
|Less：Sharesinstock|||
|Othercomprehensiveincome|3,318,193.16|3,392,222.07|
|Specialreserves|||
|Surplusreserves|73,710,682.05|73,710,682.05|
|Commonriskprovision|||
|Undistributedprofit|-66,817,987.13|-81,275,828.76|
|Totalofowner’sequitybelongtotheparentcompany|2,353,937,989.03|2,339,554,176.31|
|Minorityshareholders’equity|1,098,643,399.79|1,100,564,805.80|
|Totalofowners’equity|3,452,581,388.82|3,440,118,982.11|
|Totalofliabilitiesandowners’equity|4,071,838,673.13|4,119,586,266.47|

 Legalrepresentative：ZhuJun
Person-in-chargeoftheaccountingwork：ZhuJun
Person-in-chargeoftheaccountingorgan：MuLinying
2.BalancesheetofParentCompany
In RMB
||||
|-|-|-|
|Items|Year-endbalance|Year-beginningbalance|
|Currentasset：|||
|Monetaryfund|381,614,472.23|440,685,610.11|
|Financialassetsmeasuredatfairvaluewithvariationsaccountedintocurrentincomeaccount|||
|Derivativefinancialassets|||
|Billreceivable|600,000.00|1,000,000.00|
|Accountreceivable|716,593.37|492,974.01|
|Prepayments|237,900.00|120,000.00|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Interestreceivable|8,785,807.13|3,218,526.94|
|Dividendreceivable|||
|Otheraccountreceivable|9,228,512.38|12,524,256.75|
|Inventories|||
|Assetsheldforsales|||
|Non-currentassetduein1year|||
|Othercurrentasset|110,000,000.00|30,000,000.00|
|Totalofcurrentassets|511,183,285.11|488,041,367.81|
|Non-currentassets：|||
|Disposablefinancialasset|40,499,500.48|40,065,777.96|
|Expiredinvestmentinpossess|||
|Long-termreceivable|||
|Longtermshareequityinvestment|1,988,684,448.44|1,989,073,077.61|
|Propertyinvestment|168,567,573.77|172,279,313.75|
|Fixedassets|26,591,353.40|27,403,189.39|
|Constructioninprogress|||
|Engineeringmaterial|||
|Fixedassetdisposal|||
|Productionphysicalassets|||
|Gas&petrol|||
|Intangibleassets|1,520,771.13|1,345,846.59|
|R&Dpetrol|||
|Goodwill|||
|Long-germexpensestobeamortized|||
|Differedincometaxasset|898,341.00|1,919,804.30|
|Othernon-currentasset|||
|Totalofnon-currentassets|2,226,761,988.22|2,232,087,009.60|
|Totalofassets|2,737,945,273.33|2,720,128,377.41|
|Currentliabilities|||
|Short-termloans|||
|Financialliabilitiesmeasuredatfairvaluewithvariationsaccountedintocurrentincomeaccount|||
|Derivativefinancialliabilities|||
|Billpayable|||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Accountpayable|411,743.57|411,743.57|
|Advancepayment|639,024.58|639,024.58|
|Employees’wagepayable|4,505,495.93|6,533,138.24|
|Taxpayable|4,816,476.14|4,398,387.25|
|Interestpayable|||
|Dividendpayable|||
|Otheraccountpayable|120,659,699.78|120,954,892.58|
|Liabilitiesheldforsales|||
|Non-currentliabilityduein1year|||
|Othercurrentliability|||
|Totalofcurrentliability|131,032,440.00|132,937,186.22|
|Non-currentliabilities：|||
|Long-termloan|||
|Bondpayable|||
|Including：preferredstock|||
|Sustainabledebt|||
|Long-termpayable|||
|Employees’wagepayable|||
|Specialpayable|||
|Expectedliabilities|||
|Differedincome|||
|Differedincometaxliability|||
|Othernon-currentliabilities|||
|TotalofNon-currentliabilities|||
|Totalofliability|131,032,440.00|132,937,186.22|
|Owners’equity|||
|Sharecapital|506,521,849.00|506,521,849.00|
|Otherequityinstrument|||
|Including：preferredstock|||
|Sustainabledebt|||
|Capitalreserves|1,576,547,075.96|1,576,547,075.96|
|Less：Sharesinstock|||
|Othercomprehensiveincome|3,318,193.16|3,392,222.07|
|Specialreserves|||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Surplusreserves|73,710,682.05|73,710,682.05|
|Undistributedprofit|446,815,033.16|427,019,362.11|
|Totalofowners’equity|2,606,912,833.33|2,587,191,191.19|
|Totalofliabilitiesandowners’equity|2,737,945,273.33|2,720,128,377.41|

 3.ConsolidatedIncomestatement
In RMB
||||
|-|-|-|
|Item|Reportperiod|Sameperiodofthepreviousyear|
|I.Incomefromthekeybusiness|739,337,756.87|552,157,585.56|
|Incl：Businessincome|739,337,756.87|552,157,585.56|
|Interestincome|||
|Insurancefeeearned|||
|Feeandcommissionreceived|||
|II.Totalbusinesscost|747,682,301.68|582,562,825.44|
|Incl：Businesscost|677,617,195.79|511,249,697.64|
|Interestexpense|||
|Feeandcommissionpaid|||
|Insurancedischargepayment|||
|Netclaimamountpaid|||
|Insurancepolicydividendpaid|||
|Insurancepolicydividendpaid|||
|Reinsuranceexpenses|||
|Businesstaxandsurcharge|6,589,017.85|3,126,938.03|
|Salesexpense|4,007,043.14|4,516,009.63|
|Administrativeexpense|40,846,568.49|46,124,255.12|
|Financialexpenses|-12,037,356.58|8,972,817.56|
|Assetimpairmentloss|30,659,832.99|8,573,107.46|
|Add：Gainsfromchangeoffirvalue（“-”forloss）|||
|Investmentgain（“-”forloss）|22,955,035.39|2,267,193.29|
|Incl:investmentgainsfromaffiliates|220,115.63|711,998.34|
|Gainsfromcurrencyexchange（“-”forloss）|||
|Otherincome|5,143,961.90||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|III.Operationalprofit（“-”forloss）|19,754,452.48|-28,138,046.59|
|Add ：Non-operationalincome|528,419.77|2,298,220.41|
|Including：Incomefromdisposalofnon-currentassets|1,510.00||
|Less：Nonbusinessexpenses|3,478.36|20,829.78|
|Incl：Lossfromdisposalofnon-currentassets|3,281.59|20,770.93|
|IV.Total profit(“-”forloss)|20,279,393.89|-25,860,655.96|
|Less：Incometaxexpenses|7,742,958.27|4,237,195.44|
|V.Netprofit|12,536,435.62|-30,097,851.40|
|Net profit attributable to the owners ofparentcompany|14,457,841.63|-30,097,851.40|
|Minorityshareholders’equity|-1,921,406.01||
|VI.Othercomprehensiveincome|-74,028.91|-2,009,434.06|
|Netofprofitofothercomprehensiveincomeattributabletoownersoftheparentcompany.|-74,028.91|-2,009,434.06|
|（I）Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod|||
|1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets|||
|2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss.|||
|（II）Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss.|-74,028.91|-2,009,434.06|
|1.Othercomprehensiveincomeundertheequity method investee can bereclassifiedintoprofitorloss.|||
|2.Gainsandlossesfromchangesinfairvalueavailableforsalefinancialassets|325,291.89|-2,240,078.24|
|3.Held-to-maturity investments reclassifiedtogainsandlossesofavailableforsalefinancialassets|||
|4.Theeffectiveportionofcashflowhedg|||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|esandlosses|||
|5.Translationdifferencesincurrencyfinancialstatements|-399,320.80|230,644.18|
|6.Other|||
|7.NetofprofitofothercomprehensiveincomeattributabletoMinorityshareholders’equity|||
|VII.Totalcomprehensiveincome|12,462,406.71|-32,107,285.46|
|Totalcomprehensiveincomeattributabletotheowneroftheparentcompany|14,383,812.72|-32,107,285.46|
|Totalcomprehensiveincomeattributableminorityshareholders|-1,921,406.01||
|VIII.Earningspershare|||
|（I）Basicearningspershare|0.03|-0.06|
|(II)Dilutedearningspershare|0.03|-0.06|

 Legalrepresentative：ZhuJun
Person-in-chargeoftheaccountingwork：ZhuJun
Person-in-chargeoftheaccountingorgan：MuLinying
4.IncomestatementoftheParentCompany
In RMB
||||
|-|-|-|
|Items|Reportperiod|Sameperiodofthepreviousyear|
|I.Incomefromthekeybusiness|31,849,598.03|31,599,060.18|
|Incl：Businesscost|6,083,265.84|5,654,104.32|
|Businesstaxandsurcharge|1,364,623.95|2,262,341.59|
|Salesexpense|||
|Administrativeexpense|10,388,438.80|11,602,041.51|
|Financialexpenses|-6,361,722.17|-7,662,384.78|
|Assetimpairmentloss|-3,652,130.67|16,249.72|
|Add：Gainsfromchangeoffirvalue（“-”forloss）|||
|Investmentgain（“-”forloss）|2,146,702.07|2,267,193.29|
|Incl:investmentgainsfrom|220,115.63|711,998.34|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|affiliates|||
|Otherincome|||
|II.Operationalprofit（“-”forloss）|26,173,824.35|21,993,901.11|
|Add ：Non-operationalincome|1,510.00||
|Including：Incomefromdisposalofnon-currentassets|1,510.00||
|Less：Nonbusinessexpenses|1,582.15|13,422.71|
|Incl：Lossfromdisposalofnon-currentassets|1,582.15|13,422.71|
|III.Total profit(“-”forloss)|26,173,752.20|21,980,478.40|
|Less：Incometaxexpenses|6,378,081.15|3,096,022.38|
|IV.Netprofit（“-”fornetloss）|19,795,671.05|18,884,456.02|
|V.Netofprofitofothercomprehensiveincome|-74,028.91|-2,009,434.06|
|（I）Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod|||
|1.Re-measurement of defined benefit plansofchangesinnetdebtornetassets|||
|2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss.|||
|(II)Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss.|-74,028.91|-2,009,434.06|
|1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss.|||
|2.Gainsandlossesfromchangesinfairvalueavailableforsalefinancialassets|325,291.89|-2,240,078.24|
|3.Held-to-maturityinvestmentsreclassifiedtogainsandlossesofavailableforsalefinancialassets|||
|4.Theeffectiveportionofcashflowhedgesandlosses|||
|5.Translationdifferencesincurrencyfinancialstatements|-399,320.80|230,644.18|
|6.Other|||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|VI.Totalcomprehensiveincome|19,721,642.14|16,875,021.96|
|VII.Earningspershare：|||
|（I）Basicearningspershare|||
|(II)Dilutedearningspershare|||

5.ConsolidatedCashflowstatement
In RMB
||||
|-|-|-|
|Items|Amountinthisperiod|Amountinlastperiod|
|I.Cashflowsfromoperatingactivities|||
|Cashreceivedfromsalesofgoodsorrendingofservices|795,578,837.63|520,074,236.25|
|Netincreaseofcustomerdepositsandcapitalkeptforbrothercompany|||
|Netincreaseofloansfromcentralbank|||
|Netincreaseofinter-bankloansfromotherfinancialbodies|||
|Cashreceivedagainstoriginalinsurancecontract|||
|Netcashreceivedfromreinsurancebusiness|||
|Netincreaseofclientdepositandinvestment|||
|Netincreaseoftradefinancialassetdisposal|||
|Cashreceivedasinterest,processingfeeand commission|||
|Netincreaseofinter-bankfundreceived|||
|Netincreaseofrepurchasingbusiness|||
|Taxreturned|23,710,137.30|44,974,078.38|
|Othercashreceivedfrombusinessoperation|35,648,684.61|33,073,522.35|
|Sub-totalofcashinflow|854,937,659.54|598,121,836.98|
|Cashpaidforpurchasingofmerchandiseandservices|737,896,239.33|491,834,135.65|
|Netincreaseofclienttradeandadvance|||
|Netincreaseofsavingsncentralbank|||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|andbrothercompany|||
|Cashpaidfororiginalcontractclaim|||
|Cashpaidforinterest,processingfeeandcommission|||
|Cashpaidforpolicydividend|||
|Cashpaidtostaffsorpaidforstaffs|69,775,248.99|67,312,097.85|
|Taxespaid|53,257,411.02|21,995,337.06|
|Othercashpaidforbusinessactivities|92,185,161.14|56,296,461.76|
|Sub-totalofcashoutflowfrombusinessactivities|953,114,060.48|637,438,032.32|
|Cashflowgeneratedbybusinessoperation,net|-98,176,400.94|-39,316,195.34|
|II.Cashflowgeneratedbyinvesting|||
|Cashreceivedfrominvestmentretrieving|0.00|460,000,000.00|
|Cashreceivedasinvestmentgains|3,781,185.22|12,519,210.40|
|Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets|1,740.00|160.00|
|Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits|||
|Otherinvestment-relatedcashreceived|2,205,083,032.64|6.38|
|Sub-totalofcashinflowduetoinvestmentactivities|2,208,865,957.86|472,519,376.78|
|Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets|131,421,510.57|71,456,688.51|
|Cashpaidasinvestment|||
|Netincreaseofloanagainstpledge|||
|Netcashreceivedfromsubsidiariesandotheroperationalunits|||
|Othercashpaidforinvestmentactivities|1,883,000,000.00|368,000,000.00|
|Sub-totalofcashoutflow duetoinvestmentactivities|2,014,421,510.57|439,456,688.51|
|Netcashflowgeneratedbyinvestment|194,444,447.29|33,062,688.27|
|III.Cashflowgeneratedbyfinancing|||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Cashreceivedasinvestment|||
|Incl:Cashreceivedasinvestmentfromminorshareholders|||
|Cashreceivedasloans|51,181,623.57|192,535,253.62|
|Cashreceivedfrombondplacing|||
|Otherfinancing–relatedashreceived|6,809,000.00||
|Sub-totalofcashinflowfromfinancingactivities|57,990,623.57|192,535,253.62|
|Cashtorepaydebts|66,068,073.78|270,594,907.49|
|Cashpaidasdividend,profit,orinterests|||
|Incl:Dividendandprofitpaidbysubsidiariestominorshareholders|||
|Othercashpaidforfinancingactivities|||
|Sub-totalofcashoutflowduetofinancingactivities|66,068,073.78|270,594,907.49|
|Netcashflowgeneratedbyfinancing|-8,077,450.21|-78,059,653.87|
|IV.Influenceofexchangeratealternationoncashandcashequivalents|-668,409.25|944,072.13|
|V.Netincreaseofcashandcashequivalents|87,522,186.89|-83,369,088.81|
|Add:balanceofcashandcashequivalentsatthebeginningofterm|930,114,436.57|748,658,775.60|
|VI..Balanceofcashandcashequivalentsattheendofterm|1,017,636,623.46|665,289,686.79|

6.CashFlowStatementoftheParentCompany
In RMB
||||
|-|-|-|
|Items|Amountinthisperiod|Amountinlastperiod|
|I.Cashflowsfromoperatingactivities|||
|Cash received from sales of goods orrendingofservices|32,697,766.87|31,740,661.93|
|Taxreturned|||
|Othercashreceivedfrombusinessoperation|12,894,925.40|34,427,040.40|
|Sub-totalofcashinflow|45,592,692.27|66,167,702.33|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Cashpaidforpurchasingofmerchandiseandservices|1,748,604.45|2,618,061.41|
|Cashpaidtostaffsorpaidforstaffs|8,290,247.88|8,966,862.21|
|Taxespaid|8,145,004.75|15,233,557.86|
|Othercashpaidforbusinessactivities|8,891,199.29|3,324,789.03|
|Sub-totalofcashoutflowfrombusinessactivities|27,075,056.37|30,143,270.51|
|Cashflowgeneratedbybusinessoperation,net|18,517,635.90|36,024,431.82|
|II.Cashflowgeneratedbyinvesting|||
|Cashreceivedfrominvestmentretrieving||8,863,114.47|
|Cashreceivedasinvestmentgains|3,781,185.22||
|Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets|1,510.00||
|Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits|||
|Otherinvestment-relatedcashreceived|80,000,000.00|6.38|
|Sub-totalofcashinflowduetoinvestmentactivities|83,782,695.22|8,863,120.85|
|Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets|1,371,469.00|2,967,307.80|
|Cashpaidasinvestment||208,000,000.00|
|Netcashreceivedfromsubsidiariesandotheroperationalunits|||
|Othercashpaidforinvestmentactivities|160,000,000.00||
|Sub-totalofcashoutflow duetoinvestmentactivities|161,371,469.00|210,967,307.80|
|Netcashflowgeneratedbyinvestment|-77,588,773.78|-202,104,186.95|
|III.Cashflowgeneratedbyfinancing|||
|Cashreceivedasinvestment|||
|Cashreceivedasloans|||
|Cashreceivedfrombondplacing|||
|Otherfinancing–relatedashreceived|||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Sub-totalofcashinflowfromfinancingactivities|||
|Cashtorepaydebts|||
|Cashpaidasdividend,profit,orinterests|||
|Othercashpaidforfinancingactivities|||
|Sub-totalofcashoutflowduetofinancingactivities|||
|Netcashflowgeneratedbyfinancing|||
|IV.Influenceofexchangeratealternationoncashandcashequivalents|||
|V.Netincreaseofcashandcashequivalents|-59,071,137.88|-166,079,755.13|
|Add:balanceofcashandcashequivalentsatthebeginningofterm|440,685,610.11|531,582,749.03|
|VI..Balanceofcashandcashequivalentsattheendofterm|381,614,472.23|365,502,993.90|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport20177.ConsolidatedStatementonChangeinOwners’Equity
Amountinthisperiod
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|Amountinthisperiod|||||||||||||
||Owner’sequityAttributabletotheParentCompany|||||||||||Minorshareholders’equity|Totalofowners’equity|
||ShareCapital|OtherEquityinstrusment|||Capitalreserves|Less:Sharesinstock|OtherComprehensiveIncome|Specializedreserve|Surplusreserves|Commonriskprovision|Attributableprofit|||
|||preferredstock|Sustainabledebt|Other||||||||||
|I.Balanceattheendoflastyear|506,521,849.00||||1,837,205,251.95||3,392,222.07||73,710,682.05||-81,275,828.76|1,100,564,805.80|3,440,118,982.11|
|Add: Change ofaccountingpolicy||||||||||||||
|Correctingofpreviouserrors||||||||||||||
|Mergerofentitiesundercommoncontrol||||||||||||||
|Other||||||||||||||
|II.Balanceatthebeginningofcurrentyear|506,521,849.00||||1,837,205,251.95||3,392,222.07||73,710,682.05||-81,275,828.76|1,100,564,805.80|3,440,118,982.11|
|III.Changedinthecurrentyear|||||||-74,028.91||||14,457,841.63|-1,921,406.01|12,462,406.71|
|（1）Totalcomprehensiveincome|||||||-74,028.91||||14,457,841.63|-1,921,406.01|12,462,406.71|
|（II）Investmentordecreasingofcapitalbyowners||||||||||||||
|1．OrdinarySharesinvested by hareholders||||||||||||||
|2．Holdersofother||||||||||||||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||||||
|-|-|-|-|-|-|-|-|
|equityinstrumentsinvestedcapital||||||||
|3．Amountofsharespaidandaccountedasowners’equity||||||||
|4．Other||||||||
|（III）Profitallotment||||||||
|1.Providingofsurplusreserves||||||||
|2.Providing ofcommon riskprovisions||||||||
|3．Allotmenttotheowners(orshareholders)||||||||
|4．Other||||||||
|(IV)Internaltransferringofowners’equity||||||||
|1.Capitalizingofcapitalreserves(ortocapitalshares)||||||||
|2.Capitalizingofsurplusreserves(ortocapitalshares)||||||||
|3．Makinguplossesbysurplusreserves.||||||||
|4.Other||||||||
|(VISpecialreserves||||||||
|1.Providedthisyear||||||||
|2．Usedthisterm||||||||
|（VII）Other||||||||
|IV.Balanceatthe|506,521,|1,837,20|3,318,19|73,710,6|-66,817,|1,098,643,|3,452,581,3|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||||||
|-|-|-|-|-|-|-|-|
|endofthisterm|849.00|5,251.95|3.16|82.05|987.13|399.79|88.82|

 Amountinlastyear
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|Amountinlastyear|||||||||||||
||Owner’sequityAttributabletotheParentCompany|||||||||||Minorshareholders’equity|Totalofowners’equity|
||ShareCapital|OtherEquityinstrusment|||Capitalreserves|Less:Sharesinstock|OtherComprehensiveIncome|Specializedreserve|Surplusreserves|Commonriskprovision|Attributableprofit|||
|||preferredstock|Sustainabledebt|Other||||||||||
|I.Balance at theendoflastyear|506,521,849.00||||1,585,130,051.37||3,212,187.35||70,539,319.86||9,166,137.97||2,174,569,545.55|
|Add: Change ofaccountingpolicy||||||||||||||
|Correctingofpreviouserrors||||||||||||||
|Mergerofentitiesundercommoncontrol||||||||||||||
|Other||||||||||||||
|II.Balance at thebeginning ofcurrentyear|506,521,849.00||||1,585,130,051.37||3,212,187.35||70,539,319.86||9,166,137.97||2,174,569,545.55|
|III.Changed in thecurrentyear|||||252,075,200.58||180,034.72||3,171,362.19||-90,441,966.73|1,100,564,805.80|1,265,549,436.56|
|（1）Totalcomprehensiveincome|||||||180,034.72||||-87,270,604.54||-87,090,569.82|
|（II）Investmentordecreasingofcapitalbyowners|||||252,075,194.20|||||||1,100,564,805.80|1,352,640,000.00|
|1．OrdinarySharesinvested by hareholders||||||||||||||
|2．Holdersofother||||||||||||||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||||||
|-|-|-|-|-|-|-|-|
|equityinstrumentsinvestedcapital||||||||
|3．Allotmenttotheowners(orshareholders)||||||||
|4．Other||252,075,194.20||||1,100,564,805.80|1,352,640,000.00|
|(IV)Internaltransferringofowners’equity||||3,171,362.19|-3,171,362.19|||
|1.Capitalizingofcapitalreserves(ortocapitalshares)||||3,171,362.19|-3,171,362.19|||
|2.Capitalizingofsurplusreserves(ortocapitalshares)||||||||
|3．Makinguplossesbysurplusreserves.||||||||
|4.Other||||||||
|(VI)Specialreserves||||||||
|1.Providedthisyear||||||||
|2．Usedthisterm||||||||
|（VII）Other||||||||
|IV.Balanceattheendofthisterm||||||||
|(V)Specialreserves||||||||
|1.Providedthisyear||||||||
|2．Usedthisterm||||||||
|（VI）Other||6.38|||||6.38|
|IV.Balanceattheendofthisterm|506,521,849.00|1,837,205,251.95|3,392,222.07|73,710,682.05|-81,275,828.76|1,100,564,805.80|3,440,118,982.11|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport20178.Statementofchangeinowner’sEquityoftheParentCompany
Amountinthisperiod
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|Amountinthisperiod|||||||||||
||ShareCapital|OtherEquityinstrusment|||Capitalreserves|Less:Sharesinstock|OtherComprehensiveIncome|Surplusreserves|Commonriskprovision|Attributableprofit|Totalofowners’equity|
|||preferredstock|Sustainabledebt|Other||||||||
|I.Balance at theendoflastyear|506,521,849.00||||1,576,547,075.96||3,392,222.07||73,710,682.05|427,019,362.11|2,587,191,191.19|
|Add: Change ofaccountingpolicy||||||||||||
|Correcting ofpreviouserrors||||||||||||
|Other||||||||||||
|II.Balance at thebeginning ofcurrentyear|506,521,849.00||||1,576,547,075.96||3,392,222.07||73,710,682.05|427,019,362.11|2,587,191,191.19|
|III.Changed in thecurrentyear|||||||-74,028.91|||19,795,671.05|19,721,642.14|
|（I）Totalcomprehensiveincome|||||||-74,028.91|||19,795,671.05|19,721,642.14|
|(II)Investmentordecreasingofcapitalbyowners||||||||||||
|1．OrdinarySharesinvested by hareholders||||||||||||
|2．Holdersofotherequityinstrumentsinvestedcapital||||||||||||
|3.Amountofsharespaidandaccountedas||||||||||||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||
|-|-|-|-|-|-|-|
|owners’equity|||||||
|4．Other|||||||
|（III）Profitallotment|||||||
|1.Providingofsurplusreserves|||||||
|2．Allotmenttotheowners(orshareholders)|||||||
|3．Other|||||||
|(IV)Internaltransferringofowners’equity|||||||
|1.Capitalizingofcapitalreserves(ortocapitalshares)|||||||
|2.Capitalizingofsurplusreserves(ortocapitalshares)|||||||
|3．Makinguplossesbysurplusreserves.|||||||
|4.Other|||||||
|(V)Specialreserves|||||||
|1.Providedthisyear|||||||
|2．Usedthisterm|||||||
|（VI）Other|||||||
|IV.Balanceattheendofthisterm|506,521,849.00|1,576,547,075.96|3,318,193.16|73,710,682.05|446,815,033.16|2,606,912,833.33|

 Amountinlastyear
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Items|Amountinlastyear|||||||||
||ShareCapital|OtherEquityinstrusment|Capitalreserves|Less:Share|OtherCompre|Surplus|Commonrisk|Attributableprofit|Totalofowners’|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||preferredstock|Sustainabledebt|Other||sinstock|hensiveIncome|reserves|provision||equity|
|I.Balance at theendoflastyear|506,521,849.00||||1,576,547,069.58||3,212,187.35||70,539,319.86|398,477,102.41|2,555,297,528.20|
|Add: Change ofaccountingpolicy||||||||||||
|Correcting ofpreviouserrors||||||||||||
|Other||||||||||||
|II.Balance at thebeginning ofcurrentyear|506,521,849.00||||1,576,547,069.58||3,212,187.35||70,539,319.86|398,477,102.41|2,555,297,528.20|
|III.Changed in thecurrentyear|||||6.38||180,034.72||3,171,362.19|28,542,259.70|31,893,662.99|
|（I）Totalcomprehensiveincome|||||||180,034.72|||31,713,621.89|31,893,656.61|
|(II)Investmentordecreasingofcapitalbyowners||||||||||||
|1．OrdinarySharesinvested by hareholders||||||||||||
|2．Holdersofotherequityinstrumentsinvestedcapital||||||||||||
|3.Amountofsharespaidandaccountedasowners’equity||||||||||||
|4．Other||||||||||||
|（III）Profitallotment|||||||||3,171,362.19|-3,171,362.19||
|1.Providingofsurplusreserves|||||||||3,171,362.19|-3,171,362.19||
|2．Allotmenttotheowners(or||||||||||||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||
|-|-|-|-|-|-|-|
|shareholders)|||||||
|3．Other|||||||
|(IV)Internaltransferringofowners’equity|||||||
|1.Capitalizingofcapitalreserves(ortocapitalshares)|||||||
|2.Capitalizingofsurplusreserves(ortocapitalshares)|||||||
|3．Makinguplossesbysurplusreserves.|||||||
|4.Other|||||||
|(V)Specialreserves|||||||
|1.Providedthisyear|||||||
|2．Usedthisterm|||||||
|（VI）Other||6.38||||6.38|
|IV.Balanceattheendofthisterm|506,521,849.00|1,576,547,075.96|3,392,222.07|73,710,682.05|427,019,362.11|2,587,191,191.19|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 III. BasicInformation of theCompany
(1)Company Profile
1.Enterpriseregistrationaddress,organizationmodeandheadquarteraddress.
The company was previously the Shenzhen Textile Industry Company, on April 13, 1994, approved by the Letter(1994)No.15 issued by Shenzhen Municipal People's Government, the Company was restructured and named as Shenzhen Textile (Holdings) Co., Ltd. In the same year, approved by the (1994) No.19 file of Shenzhenshi, the shares of the company were listed in Shenzhen Stock Exchange. The company now holds a unified social credit code for the 91440300192173749Y business license,Registration address and headquarter address are 6/F,ShenfangBuilding,No.3HuaqiangRoad.North,FutianDistrict,Shenzhen.
2.Enterprise’sbusinessnatureandmajorbusinessoperation.
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 districtsofShenzhenandreservedhigh-classtextileandgarmentbusiness.
3.Approvalofthefinancialstatementsreported
ThefinancialstatementshavebeenauthorizedforissuancebytheBoardofDirectorsoftheGroupon August24,2017.
(2)Scopeofconsolidatedfinancialstatements
1.Asoftheendofthereportingperiod,thereare7subsidiariescompaniesincludedintheconsolidat ed financial statements:Shenzhen Shengbo Optoelectronic Technology Co., Ltd., Shenzhen Lisi Industrial Development Co., Ltd.,Shenzhen Huaqiang Hotel, Shenzhen Shenfang Property Management Co., Ltd. Shenzhen Beaufity Garments Co., Ltd. ,Shzhen Shenfang Import& Export Co.,Ltd.,andShengtou(Hongkong)Co.,Ltd.
2．Thescopeofconsolidatedfinancialstatementsthisperioddidnotchange.
IV.Basis forthepreparation offinancial statements
（1）Basisforthepreparation
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
Therewillbenosucheventsorsituationsinthe12monthsfromtheendofthereportingperiodthat willcausematerialdoubtsastothecontinuationcapabilityoftheCompany.
V.Importantaccounting policies andestimations
Specificaccountingpoliciesandaccountingestimatestips:
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 1.Statementoncomplyingwithcorporateaccountingstandards
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, equitychangesandcashflow,andotherrelevantinformationofthecompany.
2.FiscalYear
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December31asthefiscalyear.
3.Operatingcycle
Normalbusiness cycle is realized by the Companyin cash or cash equivalentsfromthepurchaseofassetsfor mpocessing until. Less than 1 year is for the normal operatingcycleinthecompany.
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 assetsorthecurrentliabilities.
4.Accountingstandardmoney
TheCompanytakesRMBasthestandardcurrencyforbookkeeping.
5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprisemergerundersamecontrol：
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 absorbingparty,whilethatotherenterpriseparticipatinginthecombinationisapartybeingabsorbed. Combination date is the date on which the absorbing party effectively obtains control of the party beingabsorbed.
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 thenetassetsobtainedandthecarryingamountofconsiderationpaidforthecombination(orthetotal facevalue of shares issued) is adjusted to the capitalpremium in the capitalreserve. If the balance of thecapitalpremiumisinsufficient,anyexcessisadjustedtoretainedearnings.
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.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 AccountingTreatmentoftheConsolidatedFinancialStatements:
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 andlossesofthecurrentperiodduringthecomparativestatement.
(2)Businesscombinationinvolvingentitiesnotundercommoncontrol
Abusinesscombinationinvolvingenterprisesnotundercommoncontrolisabusinesscombinationin which all of the combining enterprises are notultimately controlled by the same party or parties both beforeandafter thebusiness combination.For abusiness combinationnotinvolving 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 controloftheacquiree.
Thedifferenceofthemergercostminusthefairvalue sharesofidentifiablenetassetsobtainedbythe acquireeduringthemergerontheacquisitiondate,isrecognizedasthebusinessreputation.Whilethe merger costis less thanthe fair value shares ofidentifiable netassets obtainedby theacquiree 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 identifiablenetassetsobtainedbytheacquireeduringthemergerafterrechecking.
Where the temporary difference obtained by the acquirer was not recognized due to inconformity with the conditions applied for recognition of deferred income tax, if, within the 12 months after acquisition, additional information can prove the existence of related information at acquisition date and the expected economic benefits on the acquisition date arose from deductible temporary difference by the acquiree can be achieved, relevant income tax assets can be recognized, and goodwill offset. If the goodwill is not sufficient, the difference shall be recognized as profit of the currentperiod.
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 relatedtotheaccountingtreatment:
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
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 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 associatedwith thepurchaseof the foundation shouldbe usedparty directly related to the disposalof 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 investmentincome).
6.Preparationoftheconsolidatedfinancialstatements
(1)Thescopeofconsolidation
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, therelevanteventsoftheinvestedpartyshouldconcludethesaleandpurchaseofgoodsandservices, the management of the financial assets, the purchase and disposal of the assets, the research and developmentactivities,thefinancingactivitiesandsoon.
ThescopeofconsolidationincludestheCompanyandallofthesubsidiaries.Subsidiaryisan
enterpriseorentityunderthecontroloftheCompany.
Oncethechangeintherelevantfactsandcircumstancesleadingtothedefinitionoftherelevant
elementsinvolvedinthecontrolofthechange,thecompanywillbere-evaluated.
(2)Preparationoftheconsolidatedfinancialstatements.
The Company based on its own and its subsidiaries financial statements, in accordance with other relevantinformation,topreparetheconsolidatedfinancialstatements.
For a subsidiary acquired through a business combination not under common control, the operating results andcash flows from the acquisition (the date whenthe controlis 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.Theresultsofoperationsandcashflowareincludedintheconsolidatedbalancesheetand the consolidated income statement, respectively, based on their carrying amounts, from the date that
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 common control was established, and the opening balances and the comparative figures of the consolidatedfinancialstatementsarerestated.
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 dateofacquisition.
Intra-Group balances and transactions, and any unrealized profit or loss arising from intra-Group transactions,areeliminatedinpreparingtheconsolidatedfinancialstatements.
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 separatelyasminorityinterestintheconsolidatedincomestatementbelowthenetprofitlineitem. 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 ofthesubsidiary,theexcessisallocatedagainsttheminorityinterests.
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,usingthefoundationandtheacquireedirectlyrelatedtothedisposalofthesame assetsor liabilities areaccounted whenthecontrolis lost(ie, in additiontothe former subsidiaryis 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-Determinationandmeasurementoffinancialinstruments”.
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 dispositionofequityinvestmentinasubsidiary,subjecttothefollowingconditionsandtheeconomic impactof one or more of cases, usually indicates that several transactions should be accounted for asapackagedeal:①thesetransactionsareconsidered。simultaneously,orinthecaseofmutualinfluence 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
aloneisnoteconomical,butwhenconsideredtogetherwithothertransactioniseconomical.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 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 beusedasadisposalofasubsidiaryandthelossofcontrolofthetransaction.However,beforelosing 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 ofcontrolorlossintheperiod.
7.JointventurearrangementsclassificationandCo-operationaccountingtreatment
(1)Jointarrangement
Ajointarrangementisanarrangementofwhichtwoormorepartieshavejointcontrol，dependingof therightsandobligationoftheCompanyinthejointarrangement.Ajointoperationisajoint
arrangementwherebytheCompanyhasrightstotheassets,andobligationsfortheliabilities,relating tothearrangement.AjointventureisajointarrangementwherebytheCompanyhasrightstothenet assetsofthearrangement.
(2)Co-operationaccountingtreatment
Whenthejointventure companyfor jointoperations,confirm thefollowing items andsharecommo nbusinessinterestsrelatedto:
（1）Confirmindividualassetsandcommonassetsheldbasedonshareholdings;
（2）Confirmindividualliabilitiesandsharedliabilitiesheldbasedonshareholdings;
（3）Confirmtheincomefromthesalesrevenueofco-operatebusinessoutput
（4）Confirmtheincomefromthesalesoftheco-operatebusinessoutputbasedonshareholdings;（5）Confirmtheindividualexpenditureandco-operatebusinesscostbasedonshareholdings.
(3)When acompanyisajointventures,jointventureinvestmentwill berecognizedaslong-term equi tyinvestments.
8.RecognitionStandardofCash&CashEquivalents
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 measuredreliablyandhavelowrisksofchange.
9.ForeignCurrencyTransaction
（1）ForeignCurrencyTransaction
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 sheetdate, the monetary items offoreign currencyare translated as per the shotexchange rate onthe balancesheet
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 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 shallbetranslated atthe spotexchange rate onthe fair value recognized date,thegap shallbe recordedintothecurrentprofitsandlossesorothercomprehensiveincomes.
(2)TranslationMethodofForeignCurrencyFinancialStatement
For the assets andliabilities in the balancesheet, the shotexchange rate on the balancesheetdate 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 statementshall betranslated atthe spotexchange rate or the approximate exchange rate on the transaction date. The translation gap of financial statementofforeigncurrencyconvertedaboveshallbelistedinothercomprehensiveincomes undertheowner’sequityintheconsolidatedbalancesheet.
10.Financialtools
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,theexpensesrelatedtotransactionsarerecognizedasinitialamount.
1Determinationoffinancialassetsandliabilities’fairvalue
Fair value is the amount for which an asset could be exchanged, or a liability settled, betweenknowledgeable,willingpartiesinanarm’slengthtransaction.Forafinancialinstrumentwhichhasan 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 andoptionpricingmodels.
2.Classification,recognitionandmeasurementoffinancialassets
Allregular waypurchasesorsalesoffinancialassetsarerecognizedandderecognizedonatradedate 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-tradeassets.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017（1） Financialassetsatfairvaluethroughprofitorloss:
Including financialassets held-for-trade and financialassets designated at fair value through profit or loss.Financialassetheld-for-tradeisthefinancialassetthatmeetsoneofthefollowingconditions: A.thefinancialassetisacquiredforthepurposeofsellingitinashortterm;
B. the financial asset is a part of a portfolio of identifiable financial instruments that are collectively managed,andthereisobjectiveevidenceindicatingthattheenterpriserecentlymanagesthisportfolio forthepurposeofshort-termprofits;
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 subsequentmeasurement.
Financial asset is designated on initial recognition as at fair value through profit or loss only when it meetsoneofthefollowingconditions:
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 instrumentsondifferentbases.
B.aGroupoffinancialinstruments ismanaged anditsperformanceisevaluatedonafairvaluebasis, and is reported to theenterprise’s key management personnels. Formal documentation regarding riskmanagementorinvestmentstrategyhasprepared。
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 thefinancialassetsarerecognizedintheprofitorloss.
（2）Investmentheld-tomaturity
Held-to-maturity investments are non-derivative financialassets 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 lossforthecurrentperiod.
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 netcarryingamountofthefinancialassetorfinancialliability.Whencalculatingtheeffectiveinterest 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 receivedbetweenthepartiestothecontractgivingrisetothefinancialassetandfinancialliabilitythat areanintegralpartoftheeffectiveinterestrate,transactioncosts,andpremiumsordiscounts,etc.（3）Loansandreceivables
Loans and receivables are non-derivative financial assets with fixed determinable payment that are
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 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 orloss.
（4）Financialassetsavailable-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 atfairvaluethroughprofitorloss,loansandreceivablesorinvestmentheld-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 thefinancialassets are derecognized, atwhich time the gains or lossesare released andrecognized in profitorloss.Interestsobtainedanddividendsdeclaredbytheinvesteeduringtheperiodinwhichthe financialassetsavailable-for-tradeareheld,arerecognizedininvestmentgains.
3.Impairmentoffinancialassets
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 financialassetmaybeimpaired,aprovisionisprovidedfortheimpairment.
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 assetswhichhavesufferedfromanimpairmentlossinanysingle amountshallnotbeincludedinany combinationoffinancialassetswithsimilarriskfeaturesforanyimpairmenttest.
（1）Impairmentonheld-tomaturityinvestment,loansandreceivables
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 relatedwithsubsequenteventafterrecognitionofloss,theimpairmentlossrecordedoriginallycanbe reversed. The carrying value of financial assets after impairment loss reversed shall not exceed the amortizedcostofthefinancialassetswithoutprovisionsofimpairmentlossonthereservingdate.（2）Impairmentlossonavailable-for-tradefinancialassets
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
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 "serious decline" refers to the cumulative fair value declines more than30%; "non-temporary decline"referstothecontinuousdeclineinthefairvalueoftimeover12months.
When an available-for-trade financial asset is impaired, the cumulative loss arising from declining in fairvaluethathadbeenrecognizedincapitalreserveshallberemovedandrecognizedinprofitorloss. The amount of the cumulative loss that is removed shall be difference between the acquisition cost with deduction of recoverable amountless amortized cost, currentfair value andany impairmentloss onthatfinancialassetpreviouslyrecognizedinprofitorloss.
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 instrumentis recordedin the profit or loss, the reserved impairment loss on available-for-tradedebtinstrumentisrecordedinthecurrentprofitorloss.
Theequityinstrumentwherethereisnoquotedpriceinanactivemarket,andwhosefairvaluecannot bereliably measured, or impairmentloss on a derivative assetthatis linked to andmust besettled by deliveryofsuchanunquotedequityinstrumentshallnotbereversed.
4.Recognitionandmeasurementoffinancialassetstransfer
TheGroupderecognizesafinancialassetwhenoneofthefollowingconditionsismet:
1)therightstoreceivecashflowsfromtheassethaveexpired;
2) the enterprise has transferred its rights to receive cashflows from the assetto a third party under a pass-througharrangement;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 substantiallyalltherisksandrewardsoftheasset,buthastransferredcontroloftheasset.
Iftheenterprisehasneitherretainedalltherisksandrewardsfromthefinancialassetnorcontrolover theasset, theassetis recognized accordingtothe extentit exists asfinancialasset, andcorrespondent liability is recognized. The extent of existence refers the level of risk by the financial asset changes theenterpriseisfacing.
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 recognizedinprofitorloss.
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 partderecognized; 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 beenpreviouslyrecognizedinothercomprehensiveincome,isrecognizedinprofitorloss.
TheCompanyusesrecoursesalefinancialassets,orfinancialassetsheldendorser,determinealmost all of the risks and rewards of ownership of the financial assets have been transferred if. Has
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 transferredtheownershipof thefinancialassetsofalmostalltherisks andrewardsto thetransferee, the derecognition of the financial asset; retains ownership ofthe 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 theprinciplesdescribedintheprecedingparagraphs.
5.Classificationandmeasurementoffinancialliabilities
TheGroup’s financial liabilities are, on initial recognition, classified into financial liabilities at fair valuethrough profitor lossandotherfinancialliabilities. For financialliabilities atfair valuethrough profit or loss, relevant transaction costs are immediately recognized in profit or loss for the current period,andtransactioncostsrelatingtootherfinancialliabilitiesareincludedintheinitialrecognition amounts.
(1)Financialliabilitiesmeasuredbythefairvalueandthechangesrecordedinprofitorloss
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 forthecurrentperiod.
（2）Otherfinancialliabilities
Derivative financial liabilities that linked with equity instruments, which do not have a quoted price inanactivemarketandtheirfairvaluecannotbemeasuredreliably, issubsequentlymeasuredbycost 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 thecurrentperiod.
6.Derecognitionoffinancialliabilities
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 financialliabilityandtherecognitionofanewliability.
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 theconsiderationpaid(includinganynon-cashassets transferredornew financialliabilities assumed) inprofitorloss.
7.Offsettingfinancialassetsandfinancialliabilities
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
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 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 sheetandshallnotbeoffset.
8.Equityinstruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company afterdeducting allofits liabilities. The considerationreceived from issuingequityinstruments, netof 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.TheGroupdoesnotrecognizeanychangesinthefairvalueofequityinstruments.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 11.AccountsReceivable
1.Accounts receivable with material specific amount and specific provisioned bad debt preparation.
TheClientIdentifiessingleamountofaccounts receivablethatisnotlessthanRMB1millionas accountreceivablethatareindividuallysignificant Judgmentcriteriaoramountstandardofmaterialspecificamount
inamount.TheClientIdentifiessingleamountoforamountcriterial：
accountsreceivablethatisnotlessthanRMB0.5 millionasaccountreceivablethatareindividually significantinamount.
Makinganindependentimpairmenttest.If anyobjectiveevidenceshowsthatithasbeen impaired,theimpairment-relatedlossesshallbe recognizedaccordingtothegapbetweenits
presentvalueoffuturecashflowlessthanitsbook Provisionmethodwithmaterialspecificamountandprovisionof
value,andtheseveralshallbedeterminedto
specificbaddebtpreparation：
withdrawthebaddebtprovision.Ifthereexistsno theimpairmentaftertheimpairmenttest,theyshall beincludedinacombinationofthereceivables withsimilarriskfeaturessoastowithdrawthebad debtprovision.
2.TheaccountsreceivableofbaddebtprovisionsmadebycreditriskGroup
|||
|-|-|
|Name|WithdrawingMethod|
|AgingGroup|AgingAnalysisMethod|

InGroup,Accountsonagebasisintheportfolio：
√Applicable□Notapplicable
||||
|-|-|-|
|Aging|Rateforreceivables(%)|Rateforotherreceivables(%)|
|Within1year（Included1year）|5.00%|5.00%|
|1－2years|10.00%|10.00%|
|2－3years|30.00%|30.00%|
|Over3years|50.00%|50.00%|
|3－4years|50.00%|50.00%|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|4－5years|50.00%|50.00%|
|Over5years|50.00%|50.00%|

InGroup,adoptingbalancepercentagemethodforbaddebtprovision：
□Applicable√Notapplicable
InGroup,adoptingothermethodforbaddebtprovision：
□Applicable√Notapplicable
(3)Accountreceivablewithnon-materialspecificamountbutspecificbaddebtpreparation
|||
|-|-|
|ReasonsofWithdrawingIndividualBadDebtProvision|Thereisanyobjectiveevidenceshowsthatithasbeenimpaired.|
|WithdrawingMethodofBadDebtProvision|Theimpairment-relatedlossesshallberecognizedaccordingtothegapbetweenitspresentvalueoffuturecashflowlessthanitsbookvalue.|

 12.Inventories
Whetherthecompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustry
No
1.Investoriesclass
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 productionortheservicesoffered.
2．Valuationmethodofinventoryissued
Thecompanycalculatesthepricesofitsinventoriesaccordingtotheweightedaveragesmethod 3. Recognition Criteria for the Net Realizable Value of Different Category of Inventory and WithdrawingMethodofInventoryFallingPriceReserves
Theinventoryshallbemeasuredbyuseofthelowerbetweenthecostandthenetrealizablevalueand 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 readyto happen till the completion of works, the estimated selling expenses and the relevant expenses of taxation. The company shall recognize the net realizable value of inventory based on the acquired unambiguous evidence and in view of the purpose to hold the inventory, the influence of matters after the balance sheet date and otherfactors.
Thenetrealizablevalueofinventory directlyforsaleshallberecognizedaccordingtotheamountsof the estimated sale price of the inventory minus the estimated sale expenses andthe 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
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 completion of works, the estimated selling expenses and the relevant expenses of taxation. On the balancesheetdate,thenetrealizablevalueshallberespectivelydefinedforthepartialagreedwiththe contract price and others without the contract price in the same inventory, and the amounts of the inventoryfalling pricereserves withdrawnorreturnedshallberespectively recognized incomparison withtheircorrespondingcosts.
4.InventorySystem
AdoptsthePerpetualInventorySystem
5．Amortizationmethodforlowcostandshort-livedconsumableitemsandpackagingmaterials
（1）Lowcostandshort-livedconsumableitems
Lowcostandshort-livedconsumableitemsareamortizedusingimmediatewrite-offmethod。
（2）Packagingmaterials
Packagingmaterialsareamortizedusing
13.Held-for-saleassets
Anon-currentassetisclassifiedasheld-for-saleifallofthefollowingconditionsaresatisfied:
1Theassetisimmediatelysellableatitscurrentconditionperusualsalestermapplicabletothetypeofassetstowhichitbelongs；
2.theCompany'shascompletedofficialdecisiontodisposetheasset;
3.theCompanyhasenteredintoirrevokablesalescontractwiththepurchaser;and
4.thesaleswillbecompletedwithinoneyear.
Isclassifiedasheldforsaleandthedisposalofnoncurrentassetsinthegroupofassetsandliabilitie s,areclassifiedascurrentassetsandcurrentliabilities.
Terminationofoperationtomeetoneofthefollowingconditionshavebeendisposedoforclassifie dasheldforsale,intheoperationandthepreparationofthefinancialstatementstobeabletodiffer entiatethecomponentsaloneinthecompanywithin:
1. Thispartofmainbusinessrepresentsanindependentoramainbusinessarea;
2. Thispartoftheproposeddisposalplansforamajorbusinessindependentoramainbusinessarea; 3.Thispartisjusttosellagainandmadesubsidiary.
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 fairvalue,whichdoesn’texceedthe originalbookvalueofthefixedassetswhentheconditionofholding 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 valueafteradjusting.
Theassetsorthedisposalgroupheldforsalenolongermeettherecognizedrequirementsofthefixed
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 assetsheld for sale,the companyshallterminate the classification of held-for-sale andmeasure 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 theheld-for-sale.(2)thereturnedamountsthatcan’tbere-sold.
The intangible assets and other non-current assets held for sale shall be treated as per above principles.
14.Long-termequityinvestments
Long-term equity investments referred to in this section refer to the Company invested entity has control, joint control or significant influence over the long-term equity investments. The Company invested does not have control, joint control or significant influence over the long-term equity investments as financial assets available for sale or at fair value and the changes included financial assetsthroughprofitorloss.
JointcontrolistheCompanycontroloveranarrangementinaccordancewiththerelevantstipulations are common, related activities and the arrangement must be after sharing control participants agreed tothedecision-making. Significantinfluenceis the Companys financialandoperatingpolicies ofthe entity has the right to participate in decision-making, but can not control or with other parties joint controloverthosepolicies.
1.DeterminationofInvestmentcost
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 thepackage deal,allthetransactionswill beconductedthe accountingtreatmentas 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 financialstatements 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 thatof new consideration payment obtainedon 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
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 comprehensiveincomeaccountedbyequitymethodorconfirmedforthefinancialassetsavailablefor 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 bythisenterpriseaccountedforbyweightedequitymethod,therelevantothercomprehensiveincome shallnotbe accountedfor temporarily.If the equityinvestment heldoriginally can beclassified as the financialassetsfor sale,the differencebetweenthe fair value andthebookvalue, andthevariationin theaccumulativefairvalueofothercomprehensivereturnsrecordedoriginallywillbetransferredinto thecurrentprofitsandlosses.
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 inprofitorlossfortheperiodduringwhichtheacquisitionoccurs.
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 throughbusinesscombinationalsoincludesalldirectlyassociatedexpenses,applicabletaxesandfees, andother necessaryexpenses. When the significantimpact or the jointcontrolbutnon-controlon the invested party can be implemented due to the additional investment, the long-term equity investment costisthesumofthefairvalue oftheequityinvestmentoriginally heldandthenewinvestmentcosts based on the recognition of “Accounting Standards for Enterprises No.22– Recognition and MeasurementofFinancialInstruments”.
2.SubsequentMeasurement
To be invested joint control ( except constitute common operator ) or long-term equity investments significant influence are accounted for using the equity method. In addition, the Company's financial statements using the cost method of accounting for long-term equity can exercise control over the investee.
(1)Costmethodofaccountingforlong-termequityinvestments
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 actuallypaiduponacquisitionofthelong-termequityinvestment,investmentincomeisrecognizedin the period in accordance with the attributable share of cash dividends or profit distributions declared bytheinvestee.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 (2)Equitymethodofaccountingforlong-termequityinvestments
Whenusingtheequitymethod,theinitialinvestmentcostoflong-termequityinvestmentexceedsth einvestor'snetidentifiableassetsofthefairshareoftheinvestmentvalue,donotadjusttheinitialin vestmentcostoflong-termequityinvestment;theinitialinvestmentcostislessthantheinvesteeuni tshareofidentifiablenetassets atfairvalue, thedifferenceisrecognizedinprofitorloss,while the long-termequityinvestmentadjustmentcosts.
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 investmentmeasuredusingtheequitymethodisadjustedbytheCompany's shareoftheinvestee'snet 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 alsoadjusted by the investee's equity movementother than netprofit, other comprehensive income andprofit distribution, which is adjusted tocapitalreserves。The netprofit of the investee is adjustedbythefairvalueoftheinvestee'sidentifiableassetsasatacquistion.Thefinancialstatements 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 assetimpairment is notadjusted. 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 forman operation,the differencebetweenthe consideration received andthebookvalue of theassets 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,anygainorlossisreocgnisedinprofitorloss.
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 iseliminatedinfull,theCompany'sshareofnetprofit,ifany,isrecognisedasinvestmentincome. (3)Acquisitionofminorityinterest
The difference between newly increased equity investment due to acquisition of minority interests
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 and portion of net asset cumulatively calculated from the acquisition date is adjusted as capital reserve. If the capitalreserve is notsufficient to absorbthe difference,the excess are adjustedagainst returnedearnings.
(4)Disposaloflong-termequityinvestment
Wheretheparentcompanydisposeslong-terminvestmentinasubsidiarywithoutachangeincontrol, 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 investmentinasubsidiaryinvolvesloss ofcontroloverthe subsidiary,therelatedaccounting 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 considerationreceivedisrecognisedinprofitorloss.
The investee's equity movement other than net profit, other comprehensive income and profit distributionisreocgnisedinprofitorlossproportionatetothedisposal.
Where a long-term equity investment is measured by the equity method both before and after part disposal of the investment, cumulative other comprehensive income relevant to the investment recognisedpriortotheacquistionistreatedinthesame mannerthattheinvesteedisposestherelevant assetsorliabilitiesproportionatetothedisposal.Theinvestee'sequitymovementotherthannetprofit, othercomprehensive income andprofitdistribution is reocgnisedin profitorloss proportionatetothe disposal.
Where a long-term equity investment is measured at cost both before and after part disposal of the investment,cumulativeothercomprehensiveincomerelevanttotheinvestmentrecognised,asaresult 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 reocgnisedinprofitorlossproportionatetothedisposal.
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;wheretheCompany's controlover aninvestee islostduetopartialdisposalofinvestment 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 differencebetweenthefairvalueandthebookvalueoftheremaininginvestmentatthedateoflossof 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 thedateoflossofcontrol.Theinvestee's equitymovementotherthannetprofit,othercomprehensive
income and profit distribution, as a result of accounting by equity method, is reocgnised in profit or
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 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 othercomprehensiveincomeandotherequitymovementarerecognisedinprofitorlossinfull.
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 differencebetweenthefairvalueandthebookvalueoftheremaininginvestmentatthedateoflossof joint control or significant influence is recognised in profit or loss.Cumulative other comprehensive incomerelevantto theinvestmentrecognised,as aresultof accountingbyequitymethod,prior tothe partial disposal is treated in the same manner that the investee disposes the relevant assets or liabilities onthe date of loss of joint controlor significant influence.The investee's equity movement other than net profit, other comprehensive income and profit distribution is reocgnised in profit or losswhenjointcontrolorsignificantinfluenceislost.
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 investeeislost.
15.Investmentproperty
Themeasurementmodeofinvestmentproperty
The investment property of the company includes the leased land use rights, the leased buildings, thelanduserightsheldandpreparedtotransferafterappreciation.
Thecompanyshalladoptthecostmodetomeasuretheinvestmentproperty.
2.DepreciationorAmortizationMethodbyUseofCostMode
Theleasedbuildings oftheinvestmentpropertyinthecompanyshallbewithdrawn thedepreciation by the service life average method, and the depreciation policy is the same with that of the fixed assets.Thelanduserightsheldandpreparedtotransferafterappreciationintheinvestmentproperty shall be amortized by the line method, and the specific accounting policy is same with that of the intangibleassets.
16.Fixedassets
1．Theconditionsofrecognition
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
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 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 electronicinstrumentandotherdevices.
2．Themethodfordepreciation
||||||
|-|-|-|-|-|
|Category|Themethodfordepreciation|Expectedusefullife（Year）|Estimatedresidualvalue|Depreciation|
|House andBuilding-Production|Straight-linemethod|35years|4%|2.74%|
|HouseandBuilding-Non-Production|Straight-linemethod|40years|4%|2.40%|
|DecorationofFixedassets|Straight-linemethod|10years||10.00%|
|Machinery andequipment|Straight-linemethod|10-14years|4%|9.60%-6.86%|
|Transportationequipment|Straight-linemethod|8years|4%|12.00%|
|Electronicequipment|Straight-linemethod|8years|4%|12.00%|
|Otherequipment|Straight-linemethod|8years|4%|12.00%|

3．Cognizanceevidenceandpricingmethodoffinancialleasingfixedassets
(1)RecognitionCriteriaoftheFixedAssetsunderFinancingLease
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 leaseassets.④theleastpresentvalueoftheleasepaymentofthetenantandtheleastpresentvalueofthe
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
majormodifications.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 (2) Valuation of Fixed Assets Acquired under Finance Leases: the fixed assets acquired under finance leases shallbe book kept according to the lower between the fair value of the leasing assets andtheleastleasepaymentontheleasedate.
(3) Depreciation Method of FixedAssetsAcquired under Finance Leases: the depreciation shallbe withdrawn for the fixed assets acquired under finance leases as per the depreciation policy of own fixedassets.
17.Constructioninprogress
1.Theprojectsunderconstructionshallberecognizedwhentheeconomicbenefits mayflowintoand 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 actualcost, butthe original withdrawndepreciationshallnotbeadjustedagain.
18.Borrowingcosts
1.Recognitionprinciplesforcapitalizingofloanexpenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or productionof assetsatisfying the conditionsof capitalizing, are capitalized andaccountedas costof related asset. Other borrowing expenses are recognized as expenses according to the occurred amount,andaccountedintogain/lossofcurrentterm.
2.DurationofcapitalizationofLoancosts
(1).Whenaloanexpensesatisfiesallofthefollowingconditions,itiscapitalized:
1.Expendituresonassetshavetakenplace.
2.Loancostshavetakenplace;
3. The construction or production activities to make assets to reach the intended use or sale of state havebegun.
（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 currentperioduntiltheacquisition,constructionorproductionisresumed.
（3）When the construction or production meets the intended use or sale of state of capitalization conditions,theLoancostsshouldstopcapitalization.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 3.ComputationMethodforCapitalizationRateandAmountofBorrowingCosts
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 specialborrowingsactuallyoccurredduringthecurrentperiod(includingtheamortizationofdiscount 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, multiplyingthecapitalizationrateofgeneralborrowings.
19.Intangibleassets
1.ValuationMethod,ServiceLifeandImpairmentTestofIntangibleAssets
(1) The intangible assets include the land use rights, the professional technology and the software, whichareconductedtheinitialmeasurementasperthecost.
(2) The service life of intangible assets is analyzed and judged when of the company acquires the intangible assets. For the finite service life of the intangible assets, the years of service life or the quantity of service life formed and the number of similar measurement unit shall be estimated. If the termof economicbenefits of theintangible assets broughtfor the companyis notableto beforeseen, theintangibleassetsshallberecognizedasthatwiththeindefiniteservicelife.
(3)EstimationMethodofServicelifeofIntangibleAssets
1) For the intangible assets with the finite service life, the company shall generally consider the followingfactorstoestimatetheservicelife:①thenormalservice life ofproductsproducedwith 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 therelevantexpenseexpected.⑥therelevantlawprovisionorthesimilarlimit tothecontroltermof the assets, such as the licensed use term and the lease term.⑦ the correlation with the service life of otherassetsheldbythecompany.
2) Intangible Assets with Indefinite Service Life, Judgment Criteria on Indefinite Service Life and ReviewProcedureofItsServiceLife
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 intangibleassets.
The judgment criteria of Indefinite service life:①as from the contractualrights or other legal rights, butthe indefinite service life of contractprovision orlegal provisions.② unable to judge the term of economic benefits brought by the intangible assets for the company after the integration of informationinthesameindustryortherelevantexpertargumentation.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 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 indefiniteservicelifeifthereisthechange.
(4)AmortizationMethodofIntangibleAssetsValue
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 assetsunableto reliablyrecognizetheexpectedimplementation mode.Thespecific service life isas follows:
||
|-|
|Items|
|Landuseright|
|Proprietarytechnology|
|Software|

The intangible assets with the indefinite service life shall not be amortized, and the company shall makethereviewoftheservicelifeoftheintangibleassetsduringeveryaccountingperiod.
(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 impairmentexists.
2.AccountingPolicyofInternalResearchandDevelopmentExpenditure
The expenditure for internal research and development project in the study stage shall be recorded into the current profits and losses when occurring. The expenditure for internal research and development project in the development stage shall be recognized as the intangible assets when the following requirements are simultaneously met: (1) the completion of the intangible assets is available for use or sale, and feasible in the technology. (2) the intention to complete the intangible assets and use or sale. (3) the method for the economic benefits produced by the intangible assets, including the evidence that shows there exists the market for the products generated from the intangible assets or the intangible assets have the market. The intangible assets are used internally which shows the serviceability. (4) there are sufficient technology, financial resources and other resources to support the completion of the development of the intangible assets, and there is ability to use or sell the intangible assets. (5) the expenditure belong to the development stage of the intangibleassetscanbereliablymeasured.
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,
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 whichhas the features of planningand exploration. (2) before the commercial manufacture anduse, theresearchresults orotherknowledge shouldbeappliedforthe planordesign, in ordertoproduce 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 possibilitytocreatetheachievement.
20.Long-termAssetsImpairment
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 thepresentvalueofthecashflowofassetsexpectedinthefuture.
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 existstheimpairment.
The impairment loss of long-term assets after recognizedshouldn’t be reversed in the future accountingperiod.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 21.Long-termamortizableexpenses
Deferredchargesrepresentexpensesincurredthatshouldbeborneandamortizedoverthecurrentand subsequentperiod(togetherofmorethanoneyear).
Thelong-termunamortizedexpenseshallbebookkeptaspertheactualamountoccurred,andshallbe 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 unamortizedprojectshallallbetransferredintothecurrentprofitsandlosses.
22.Remuneration
1.AccountingTreatmentMethodofShort-termCompensation
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 fairvalue.
2.AccountingTreatmentMethodofSeveranceBenefitPlans
The severance benefit plans can be divided into the defined contribution plan and the defined benefit planaccordingtotheriskandobligationborne.
(1)TheDefinedContributionPlan
The contribution deposits thatpaid to the individualsubject forthe services provided by the staffs on the balance sheetdate during the accounting period, shall be recognized as the liability, and recorded intothecurrentprofitsandlossesortherelevantassetcostsasperthebeneficiary.
(2)TheDefinedBenefitPlan
The defined benefit plan is the severance benefitplans 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 balancesheetdateorthemarketreturnofhigh-qualitycorporatebondsintheactivemarket.
2) If there exist the assets for the defined benefit plan, the deficit or surplus arising from the present valueofthedefinedbenefitplanobligationsminusthefairvalueofthedefinedbenefitplanassetsare recognizedasthenetliabilityorthenetassetsofthedefinedbenefitplan.Ifthereexiststhesurplusof 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 assetsreferstothepresentvalue ofeconomicbenefitsobtainedfromtherefundofthedefinedbenefit
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 plansorthereductionofdepositfundsoffuturedefinedbenefitplans.
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 benefitplan,andthechangescausedbythenetliabilitiesandthenetassetsofthedefinedbenefitplan 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 assetscosts,thechangescausedbythenetliabilitiesandthenetassetsofthedefinedbenefitplanthat re-measured shallberecordedinto other comprehensive incomes, which should notbe switched back to the profits and losses during the subsequent accounting period, but the amount recognized from othercomprehensiveincomescanbetransferredwithinthescopeoftherightsandinterests.
4)Theprofitorlossofonesettlementshallberecognizedwhensettlingthedefinedbenefitplan.
3.AccountingTreatmentMethodofDemissionWelfare
Theemployee compensation liabilities generated bythedemission welfare shallberecognized onthe early date and recorded into the current profits and losses: (1) when the companycan’t withdraw the demissionwelfareprovidedduetotherundownsuggestionortheterminationoflaborrelationsplans. (2)when thecompanyrecognizes the costs orthe expensesrelated to thereorganization of demission welfarepayment.
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 totheterminationoflaborrelationswithstaffandshallberecordedintothecurrentprofitsandlosses. Thencompanyshallreasonablypredictandrecognizethe payrollpayablearising fromthedismission 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-termcompensation,shallapplytotheprovisionsrelatedtootherlong-termemployeebenefits. 4.AccountingTreatmentMethodofOtherLong-termEmployeeBenefits
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 andlossesortherelevantassetscosts.
23.EstimatedLiabilities
1.RecognitionCriteriaofEstimatedLiabilities
Theliabilitiesshallberecognizedwhenexternalguarantee,pendinglitigationorarbitration,product qualityassurance,staffreductionplan,losscontract,recombinationobligation,disposalobligationof
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 thefixedassetsandotherpertinentbusinessesallmeetthefollowingrequirements:
(1)Theobligationisthecurrentobligationbornebythecompany.
(2)Theimplementationoftheobligationmaycausetheeconomicbenefitsoutoftheenterprise.
(3)Theamountoftheobligationcanbemeasuredreliably.
2.MeasurementMethodofEstimatedLiabilities
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 accordingtothefollowingmethods:
(1) The best estimate shall be recognized as per the most possible amount if there are matters involvedinthesingleitem.
(2) The best estimate shall be calculated and recognized as per the possible amount if there are mattersinvolvedinthemultipleitem.
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 liabilitiesrecognized.
Thecompanyshallmake review ofthe bookvalue ofestimated liabilities atthebalancesheetdate.If there is conclusive evidence that the book value cannot really reflect the current best estimate, the adjustmentshallbemadeforthebookvalueinaccordancewiththecurrentbestestimate.
24.Revenue
Whetherthecompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustry
No
1.RecognitionPrincipleofRevenue
(1)TheGoodsforSale
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 relevantcostsincurredortobeincurred.
(2)TheServiceProvision
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, thereliablerecognitionofthecompletionscheduleoftransaction,andthereliablemeasurementofthe
relevant costs incurred or to be incurred in the transaction), the company shall recognize the relevant
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 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 currentprofitsandlossesandnotberecognizedastheservicerevenue.
(3)TheAbalienationoftheRighttoUseAssets
Therevenueofabalienationoftherighttouseassetsshallberecognizedwhentheabalienationofthe righttouseassetsmeetstherequirementsofthepossibleinflowoftherelevanteconomicbenefitsand 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 methodappointedintherelevantcontractoragree.
2.TheSpecificRecognitionMethodofRevenue
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 vouchershasbeenobtainedandrelatedeconomicbenefitsarelikelytoinflow,andthecostsrelatedto 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 obtainedand 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 productscanbemeasuredreliably.
25.Governmentsubsidy
1.JudgmentBasisandAccountingTreatmentMethodofGovernmentGrantsrelatedtoAssets 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 therelevantassets,andrecordedintothecurrentprofitsorlosses.
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 recognizedasthegovernmentsubsidyrelatedtoincome.
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
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 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 specialitem.② only generalexpression is made in the governmentdocuments, andthe government subsidyrelatedtoincomeshouldbemadeforthenon-particularitems.
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 andlosses.
26.TheDeferredTaxAssets/ThedeferredTaxLiabilities
1.TemporaryDifference
Thetemporarydifferenceincludesthedifferenceofthebookvalueofassetsandliabilitiesandthetax 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 canbeclassifiedintothetaxabletemporarydifferenceandthedeductibletemporarydifference.
2.RecognitionBasisofDeferredTaxAssets
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 thedeductibletemporarydifference,thedeductiblelossandthetaxpaymentoffset.
Thedeferredtaxassetswiththefollowingfeaturesandarisingfromtheinitialrecognitionofassetsor 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 thedeductiblelosses).
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 differenceispossibletobeobtainedinthefuture.
3.RecognitionBasisofDeferredTaxLiabilities
Allthetaxabletemporarydifferencesshallberecognizedasthedeferredtaxliabilities.
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 profitsandthetaxableincomes(orthedeductiblelosses).
The company shall recognize the corresponding deferred tax liabilities for the taxable temporary differencerelated tothe investmentof subsidiaries,cooperative enterprises andjointventures. 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
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 intheforeseeablefuture.
4.ImpairmentofDeferredTaxAssets
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 deferredtaxassetsreducedcanberecoveredwhensufficienttaxableincomeispossiblyobtained.
5.IncomeTaxExpense
Theincometaxexpenseshouldincludethecurrentincometaxandthedeferredincometax.
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.AccountingTreatmentMethodofOperatingLease
Whenthecompanyisasthetenant,therentalwithintheleasetermshallberecordedintotherelevant assets costor recognized as the currentprofits and losses as perthe line method, andthe initial direct expense occurred shall be directly recorded into the current profit and loss. The contingent rental shallberecordedintothecurrentprofitandlossoncetheactualoccurrence.
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 lossoncetheactualoccurrence.
2.AccountingTreatmentMethodofFinanceLease
When the company is as the tenant, the company shall recognize the less one between the fair value ofleasingassetsandthepresentvalueofminimumleasepaymentattheleasecommencementdateas the book value of rented assets, recognize the minimum lease payment as the book value of the long-term payables, and the undeterminedfiancé expense of the difference and the initial direct costs occurredshallberecordedintotheleasingassetvalue.Duringeachleaseperiod,thecurrentfinancing chargesshallbemeasuredandrecognizedbytheeffectiveinterestmethod.
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
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 recognize the differencebetweenthe sums of minimumlease receivables, minimum leasereceivables 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 interestmethod.
28.Changeofmainaccountingpoliciesandestimations
(1)Changeofmainaccountingpolicies
√Applicable□Notapplicable
||||
|-|-|-|
|The content and reasons of accountingpolicychanges|Approvalprocedure|Remarks|
|OnMay10,2017,theMinistryofFinanceissuedtheNoticeonissuingtheAmendmenttoAccountingStandardsforBusinessEnterprisesNo.16-GovernmentGrants(Accounting[2017]No.15),requireditshallbeimplementedintheenterprisescopethatperformstheaccountingstandardsfromJune12,2017.Thecompanymakescorrespondingchangesinaccountingpoliciesinaccordancewiththerequirement.|Examinedandapprovedatthethirdmeetingofthe7thBoardofDirectorsonAugust24,2017|ThechangeinaccountingpolicydoesnotinvolvethescopeoftheCompany'sbusiness.Thechangewillnothaveasignificantimpactonthetotalamountofassets,totalliabilities,netassetsandnetprofitoftheCompany'spreviousannualand2017financialreports.|

（2）Changeofmainaccountingestimations
□Applicable√Notapplicable
VV.Taxes ofthe Company
1.Maintaxescategoriesandtaxrate
||||
|-|-|-|
|Taxes|Taxreferences|Applicabletaxrates|
|VAT|The taxable turnover|17%、5%|
|Cityconstructiontax|Turnovertaxtobepaidallowances|7%|
|Businessincometax|Turnovertaxtobepaidallowances|25%、15%|
|Educationsurcharge|Turnovertaxtobepaidallowances|3%|
|Localeducationsurcharge|Turnovertaxtobepaidallowances|2%|

Incasethereexistanytaxpayerpayingcorporateincometaxatdifferenttaxrates,disclosethe
information
|||
|-|-|
|Nameoftaxpayer|Incometaxrates|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||
|-|-|
|ShenzhenShengboOptoelectronicTechnologyCo.,Ltd.|15%|

2.Taxpreferenceandapprovalfile
(1)ShenzhenShengboOptoelectronicTechnologyCo.,Ltd.,thesubsidiarycompanyofourcompany, has been qualified as national high-tech enterprise since 2016 ,High-tech and enterprise certificate No.:GR201644201276,The certificate is valid for three years,The enterprise income tax rate of thisyearis15%.
(2).In accordancewith relevantprovisionsofthe Notice ofMinistry ofFinance, GeneralAdministra tion of Customs and State Taxation Administration Regarding Tax Preference Policies for Further S upportingtheDevelopmentofNew-type DisplayDeviceIndustry(CaiGuanShui(2016)No.62),S henzhenShengboOptoelectronicTechnologyCo.,Ltd. manufacturedkeymaterials andpartsforthe upstream industryof new-type displaydevices including colorfullight filter coating andpolarizer s heetthatcomply with the planning forindependentdevelopmentof domestic industries may enjoyt hepreferentialpoliciesofexemptionfromimporttarifffortheimportofrawmaterials andconsuma bles for the purpose of self use and production that can notbe produced domestically from January 1,2016andDecember31,2020.
VII.Notes of consolidated financialstatement
1.MonetaryCapital
In RMB
||||
|-|-|-|
|Items|Year-endbalance|Year-beginningbalance|
|Cashathand|16,523.96|22,807.86|
|Bankdeposit|1,019,095,651.39|932,021,522.23|
|Othermonetaryfunds|2,299,103.82|1,812,582.64|
|Total|1,021,411,279.17|933,856,912.73|
|Including : The total amount of depositabroad|22,553,657.90|23,329,496.78|

Othernotes
AsofJune30,2017，Thefixed-termdepositbalanceofmoneyfundisRMB3,774,655.71,thispart will not be treated as closing cash or closing cash equivalent in preparing cash flow statement. MonetaryunitisRMByuan
2.Derivativefinancialassets
□Applicable√Notapplicable
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 3.Billreceivables
(1)ClassificationBillreceivable
In RMB
||||
|-|-|-|
|Items|Year-endbalance|Year-beginningbalance|
|Bankacceptance|41,800,470.91|41,908,315.45|
|Total|41,800,470.91|41,908,315.45|

（2）Notesendorsementordiscountandundueonbalancesheetdate
In RMB
||||
|-|-|-|
|Items|Amountderecognizingatperiod–end|Amountderecognizingatperiod-end|
|Bankacceptance|61,188,471.91||
|Total|61,188,471.91||

4.Accountreceivable
1.Classificationaccountreceivables.
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Classification|Amountinyear-end|||||Amountinyear-begin|||||
||Bookbalance||Baddebtprovision||Bookvalue|Bookbalance||Baddebtprovision||Bookvalue|
||Amount|Proportion(%)|Amount|Proportion(%)||Amount|Proportion(%)|Amount|Proportion(%)||
|Accountsreceivable ofindividualsignificance andsubject toindividualimpairmentassessment|6,301,342.71|2.98%|3,999,088.66|63.46%|2,302,254.05|6,302,912.11|2.61%|4,000,658.05|63.47%|2,302,254.06|
|Accountsreceivable subjectto impairmentassessment bycredit riskcharacteristicsofaportfolio|198,090,470.26|94.10%|10,082,290.88|5.09%|188,008,179.37|228,090,819.33|94.56%|11,596,924.13|5.08%|216,493,895.20|
|Accountsreceivable ofindividualinsignificance butsubject to|6,119,231.01|2.92%|4,972,186.53|81.26%|1,147,044.49|6,816,189.64|2.83%|5,390,319.49|79.08%|1,425,870.15|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|individualimpairmentassessment|||||||||
|Total|210,511,043.98|100.00%|19,053,566.07|191,457,477.91|241,209,921.08|100.00%|20,987,901.67|220,222,019.41|

 Accountsreceivableofindividualsignificanceandsubjecttoindividualimpairmentassessment.
√Applicable□Notapplicable
In RMB
||||||
|-|-|-|-|-|
|Debtor|Amountinyear-end||||
||Accountreceivable|Baddebtprovision|Proportion(%)|Reasonforallowance|
|DongguanFairLCDCo.,Ltd.|1,696,834.60|1,696,834.60|100.00%|Ithasbeenincludedinthelist of national courtsdishonest debtor, unlikelytorecover.|
|Guangdong Ruili BaolaiTechnologyCo.,Ltd.|1,348,965.36|674,482.68|50.00%|Beyond the credit periodfor a long time, uncertainrecovered.|
|Dongguan YaxingSemiconductorCo.,Ltd.|3,255,542.75|1,627,771.38|50.00%|Beyond the credit periodfor a long time, uncertainrecovered.|
|Total|6,301,342.71|3,999,088.66|--|--|

 Accountreveivableonwhichbaddebtproisionsareprovidedonagebasisinthegroup
√Applicable□Notapplicable
In RMB
|||||
|-|-|-|-|
|Aging|Balanceinyear-end|||
||Accountreceivable|Baddebtprovision|Proportion(%)|
|SubitemWithin1year||||
||197,608,593.41|9,880,429.22|5.00%|
|Subtotalwithin1year|197,608,593.41|9,880,429.22|5.00%|
|1-2years|74,742.72|7,474.28|10.00%|
|2-3years|45,898.44|13,769.53|30.00%|
|Over3years|361,235.69|180,617.85|50.00%|
|3-4years|128,940.73|64,470.37|50.00%|
|4-5years|38,535.76|19,267.88|50.00%|
|Over5years|193,759.20|96,879.60|50.00%|
|Total|198,090,470.26|10,082,290.88||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 Notesofthebasisofrecognizingthegroup:
Inthegroups,accountsreceivableadoptingbalancepercentagemethodtowithdrawbaddebt
provision：
□Applicable√Notapplicable
（2）Accrualperiod,recoveryorreversalofbaddebtssituation
ThecurrentamountofprovisionforbaddebtsisRMB-1,516,202.64;recoveryorpaybackforbad debtsAmountisRMB418,132.96.
（3）Theendingbalanceofreceivableowedbytheimputationofthetopfiveparties
|||||||
|-|-|-|-|-|-|
|Name|Nature|Balanceinyear-end|Aging|Proportion(%)|Baddebtprovision|
|First|Goods|72,878,869.96|Within1year|34.62%|3,643,943.50|
|Second|Goods|30,359,078.15|Within1year|14.42%|1,517,953.91|
|Third|Goods|11,971,226.55|Within1year|5.69%|598,561.33|
|Fourth|Goods|11,871,816.81|Within1year|5.64%|593,590.84|
|Fifth|Goods|7,340,986.48|Within1year|3.49%|367,049.32|
|Total||134,421,977.95||63.86%|6,721,098.90|

5.Prepayments
（1）Ageanalysis
In RMB
||||||
|-|-|-|-|-|
|Aging|Balanceinyear-end||Balanceinyear-begin||
||Amount|Proportion（%）|Amount|Proportion（%）|
|Within1year|25,531,130.62|93.85%|5,108,950.81|75.43%|
|1-2years|1,517,855.79|5.58%|592,795.34|8.75%|
|2-3years|116,548.56|0.43%|1,033,416.99|15.26%|
|Over3years|38,160.00|0.14%|38,160.00|0.56%|
|Total|27,203,694.97|--|6,773,323.14|--|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017（2）TheendingbalanceofPrepaymentsowedbytheimputationofthetopfiveparties
||||
|-|-|-|
|Name|Balanceinyear-end|Proportion|
|First|6,774,400.00|24.90%|
|Second|5,287,973.86|19.44%|
|Third|4,053,335.37|14.90%|
|Fourth|3,374,897.02|12.41%|
|Fifth|2,461,512.07|9.05%|
|Total|21,952,118.32|80.70%|

6.Interestreceivable
1.Categoryofinterestreceivable
In RMB
||||
|-|-|-|
|Items|Amountinyear-end|Amountinyear-beginng|
|Fixeddepositinterest|7,637,834.97|4,925,279.45|
|Structuredepositinterest|2,943,216.44|1,599,384.48|
|Otherfinancingproduct||128,219.18|
|Total|10,581,051.41|6,652,883.11|

 7.Otherreceivable
1．CategoryofOtherreceivable
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Classification|Amountinyear-end|||||Amountinyear-begin|||||
||BookBalance||Baddebtprovision||Bookvalue|BookBalance||Baddebtprovision||Bookvalue|
||Amount|Proportion(%)|Amount|Proportion(%)||Amount|Proportion(%)|Amount|Proportion(%)||
|Other accountsreceivable ofindividualsignificance andsubject to individualimpairment|11,981,464.60|9.81%|11,981,464.60|100.00%||11,981,464.60|14.20%|11,981,464.60|100.00%||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|assessment|||||||||||
|Other accountsreceivable subject toimpairmentassessment by creditrisk characteristics ofaportfolio|109,609,719.65|89.77%|5,750,096.00|5.25%|103,859,623.65|71,842,367.36|85.19%|4,569,810.64|6.36%|67,272,556.72|
|Other accountsreceivable ofindividualinsignificance butsubject to individualimpairmentassessment|511,820.77|0.42%|511,820.77|100.00%||511,820.77|0.61%|511,820.77|100.00%||
|Total|122,103,005.02|100.00%|18,243,381.37||103,859,623.65|84,335,652.73|100.00%|17,063,096.01||67,272,556.72|

 Other receivable accounts with large amount and were provided had debt provisions individually at endofperiod.
√Applicable□Notapplicable
In RMB
||||||
|-|-|-|-|-|
|Debtor|Amountinyear-end||||
||Otheraccountreceivable|Baddebtprovision|Withdrawalproportion(%)|Reasonforallowance|
|Jiangxi Xuanli StringCo.,Ltd.|11,389,044.60|11,389,044.60|100.00%|No executable property,unlikelytorecover.|
|Shenzhen TianlongInduatry& Trade Co.,Ltd.|592,420.00|592,420.00|100.00%|Has been conceled,unlikelytorecover|
|Total|11,981,464.60|11,981,464.60|--|--|

 OtherreceivableaccountsinGrouponwhichbaddebtprovisionswereprovidedonageanalyze
basis：
√Applicable□Notapplicable
In RMB
|||||
|-|-|-|-|
|Aging|Amountinyear-end|||
||Otherreceivable|Baddebtprovision|Withdrawalproportion|
|Subitemwithin1year||||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||
|-|-|-|-|
|Within1year|105,698,911.04|5,284,945.56|5.00%|
|Subtotalwithin1year|105,698,911.04|5,284,945.56|5.00%|
|1-2years|3,712,869.88|371,286.99|10.00%|
|2—3years|25,529.60|7,658.88|30.00%|
|Over3years|172,409.13|86,204.57|50.00%|
|3-4years|160,403.68|80,201.84|50.00%|
|Over5years|12,005.45|6,002.73|50.00%|
|Total|109,609,719.65|5,750,096.00|5.25%|

Notes：
OtherreceivableaccountinGrouponwhichbaddebtprovisionswereprovidedonpercentage
basis：
□Applicable√Notapplicable
OtherReceivableaccountsonwhichbaddebtprovisionsareprovidedbyotherwaysinthe
portfolio：
□Applicable√Notapplicable
（2）Baddebtprovisionaccrualcollectedorswitchback
ThecurrentamountofprovisionforbaddebtsisRMB1,180,285.36.
(3)Otheraccountreceivablescategorybynatureofmoney
In RMB
||||
|-|-|-|
|Category|Year-endbalance|Year-beginningbalance|
|Customs bond|38,136,592.50|44,643,087.38|
|Exportrebate|11,522,051.98|18,179,211.88|
|Unitaccount|64,103,175.96|16,812,275.87|
|Deposit|41,359.09|1,858,126.16|
|Reservefundandstaffloans|1,035,084.57|900,116.01|
|Other|17,264,740.92|1,942,835.43|
|Total|122,103,005.02|84,335,652.73|

 (4)Top 5 of the closing balance of the other accounts receivable colleted according to the arrearsparty
In RMB
|||||||
|-|-|-|-|-|-|
|Name|Nature|Year-endbalance|Age|Portion in total otherreceivables(%)|Baddebtprovisionofyear-end|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||||
|-|-|-|-|-|-|
||||||balance|
|First|Customs bond|38,136,592.50|Within1year|31.23%|1,906,829.63|
|Second|Unitaccount|36,395,640.50|Within1year|29.81%|1,819,782.03|
|Third|Unitaccount|15,738,000.00|Within1year|12.89%|786,900.00|
|Fourth|Exportrebate|11,522,051.98|Within1year|9.44%|576,102.60|
|Fifth|Unitaccount|11,389,044.60|Over5years|9.33%|11,389,044.60|
|Total|--|113,181,329.58|--|92.69%|16,478,658.86|

 8.Inventory
Whetherthecompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustry
No
（1）Inventoriestypes
In RMB
||||||||
|-|-|-|-|-|-|-|
|Items|Year-endbalance|||Year-beginningbalance|||
||Bookbalance|Provisionforbaddebts|Bookvalue|Bookbalance|Provisionforbaddebts|Bookvalue|
|Rawmaterials|122,896,273.44|16,553,491.89|106,342,781.55|107,814,144.09|9,148,167.24|98,665,976.85|
|Processingproducts|5,322,949.87|279,390.02|5,043,559.85|4,519,927.47|279,390.02|4,240,537.45|
|Stockgoods|229,914,391.43|45,407,421.27|184,506,970.16|232,620,913.26|52,155,713.49|180,465,199.77|
|Total|358,133,614.74|62,240,303.18|295,893,311.56|344,954,984.82|61,583,270.75|283,371,714.07|

 Whetherthecompanyisrequiredtocomplywiththe"ShenzhenStockExchangeIndustry
InformationDisclosureGuidelinesNo.4-listedcompaniesengagedinseedindustry,planting
business"disclosurerequirements
No
（2）InventoryImpairmentprovision
In RMB
||||||||
|-|-|-|-|-|-|-|
|Items|Year-beginningbalance|Increasedincurrentperiod||Decreasedincurrentperiod||Year-endbalance|
|||Provision|Transferredback|Provision|Transferredback||
|Rawmaterials|9,148,167.24|13,442,857.33||6,037,532.68||16,553,491.89|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||
|-|-|-|-|-|
|Processingproducts|279,390.02|||279,390.02|
|Stockgoods|52,155,713.49|24,468,214.88|31,216,507.10|45,407,421.27|
|Total|61,583,270.75|37,911,072.21|37,254,039.78|62,240,303.18|

 9.Othercurrentassets
In RMB
||||
|-|-|-|
|Items|Year-endbalance|Year-beginningbalance|
|StructuralDeposit|110,000,000.00|428,000,000.00|
|Otherfinancingproduct|1,028,000,000.00|1,000,000,000.00|
|AfterthedeductionofinputVAT|16,910,595.58|43,157.76|
|Total|1,154,910,595.58|1,428,043,157.76|

 10.Available-for-sale financial assets
(1)Available-for-salefinancialassets
In RMB
||||||||
|-|-|-|-|-|-|-|
|Items|Year-endbalance|||Year-beginningbalance|||
||Bookbalance|Baddebtprovision|Bookvalue|Bookbalance|Baddebtprovision|Bookvalue|
|Available-for-saleequityinstruments|78,689,488.99|36,689,988.51|41,999,500.48|78,255,766.47|36,689,988.51|41,565,777.96|
|Measuredbyfairvalue|8,812,453.02||8,812,453.02|8,378,730.50||8,378,730.50|
|Measuredbycost|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|78,689,488.99|36,689,988.51|41,999,500.48|78,255,766.47|36,689,988.51|41,565,777.96|

 (2)Available-for-salefinancialassetsmeasuredbyfairvalueattheperiod-end
In RMB
|||||
|-|-|-|-|
|Type|Available-for-saleequityinstruments|Available-for-sale Debtinstruments|Total|
|Costoftheequity|8,940,598.31||8,940,598.31|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|instruments/amortizedcostoftheliabilitiesinstruments|||
|Fairvalue|8,812,453.02|8,812,453.02|
|Changedamountofthefairvalueaccumulativelyincludedinothercomprehensiveincome|-128,145.29|-128,145.29|

(3)Available-for-salefinancialassetsmeasuredbycostattheperiod-end
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Bookbalance||||Impairmentprovision||||Shareholdingproportionamongtheinvestees|Cashbonusofthereportingperiod|
||Period-begin|Increase|Decrease|Period-end|Period-begin|Increase|Decrease|Period-end|||
|ShenzhenJintian Industry（Group） Co.,Ltd.|14,831,681.50|||14,831,681.50|14,831,681.50|||14,831,681.50|3.68%||
|ShenzhenJiafeng TextileCo.,ltd.|16,800,000.00|||16,800,000.00|16,800,000.00|||16,800,000.00|10.80%||
|ShenzhenGuanhuaPrnting &dyeingCo.,Ltd.|5,491,288.71|||5,491,288.71|5,058,307.01|||5,058,307.01|45.00%||
|Shenzhen UnionDevelopmentGroupCo.,Ltd|2,600,000.00|||2,600,000.00|||||2.87%||
|ShenzhenXiangjiangTradeCo.,Ltd.|160,000.00|||160,000.00|||||20.00%|329,439.84|
|ShenzhenXinfangKnitting Co.,|524,000.00|||524,000.00|||||20.00%||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||
|-|-|-|-|-|-|-|
|Ltd.|||||||
|ShenzhenDailisi KnittingCo.,Ltd.|2,559,856.26|2,559,856.26|||30.00%||
|AnhuiHuapengTextileCo.,Ltd.|25,410,209.50|25,410,209.50|||50.00%||
|ShenzhenSouthTextileCo.,Ltd.|1,500,000.00|1,500,000.00|||9.84%||
|Total|69,877,035.97|69,877,035.97|36,689,988.51|36,689,988.51|--|329,439.84|

(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
In RMB
|||||
|-|-|-|-|
|Type|Available-for-saleEquityinstruments|Available-for-saleDebtinstruments|Total|
|Balanceofthewithdrawnimpairment at theperiod-begin|36,689,988.51||36,689,988.51|
|Withdrawnattheperiod|36,689,988.51||36,689,988.51|

11.Long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Investees|Openingbalance|Increase/decrease||||||||Closingbalance|Closingbalanceofimpairmentprovision|
|||Additionalinvestment|Negativeinvestment|Investmentprofitandlossrecognizedundertheequitymethod|Adjustmentofothercomprehensiveincome|Changesofotherequity|Cashbonusorprofitsannouncedtoissue|Withdrawalofimpairmentprovision|Other|||
|I.Jointventure||||||||||||
|ShenzhenHaohao|5,106,487.57|||-230,414.33||||||4,876,073.24||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||
|-|-|-|-|-|-|-|
|PropertyLeasingCo.,Ltd.|||||||
|ShenzhenXieliAutomobile Co.,Ltd.|4,243,705.44||||4,243,705.44|266,654.99|
|Subtotal|9,350,193.01|-230,414.33|||9,119,778.68|266,654.99|
|2.AffiliatedCompany|||||||
|ShenzhenChanglianfaPrinting&dyeingCompany|1,968,358.12|57,430.75|||2,025,788.87||
|JordanGarmentFactory|2,574,327.77|-326,511.57|-56,469.01||2,191,347.19||
|HongkongYehuiInternationalCo.,Ltd.|11,223,087.09|719,610.78|-342,851.79|209,424.00|11,390,422.08||
|Subtotal|15,765,772.98|450,529.96|-399,320.80|209,424.00|15,607,558.14||
|Total|25,115,965.99|220,115.63|-399,320.80|209,424.00|24,727,336.82|266,654.99|

 Othernotes
ShenzhenXieliAutomobileCo.,Ltd.Businesslicensehasbeenrevokedthebusinesssector.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 12..Investment real estate
（1）Measuredbythecostofinvestmentinrealestate
√Applicable□Notapplicable
In RMB
||||||
|-|-|-|-|-|
|Items|House,Building|Landuseright|Constructioninprocess|Total|
|I.Originalprice|||||
|1.Balanceatperiod-beginning|304,648,938.91|||304,648,938.91|
|2.Increaseinthecurrentperiod|||||
|(1)Purchase|||||
|（ 2 ） Inventory\Fixedassets\ Transferredfromconstructioninprogress|||||
|(3)IncreasedofEnterpriseCombination|||||
|3.Decreasedamountoftheperiod|||||
|（1）Dispose|||||
|（2）Otherout|||||
|4.Balanceatperiod-end|304,648,938.91|||304,648,938.91|
|II.Accumulatedamortization|||||
|1.Openingbalance|125,324,391.14|||125,324,391.14|
|2.Increasedamountoftheperiod|3,956,056.24|||3,956,056.24|
|(1)Withdrawal|3,956,056.24|||3,956,056.24|
|3.Decreasedamountoftheperiod|||||
|（1）Dispose|||||
|（2）Otherout|||||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|4.Balanceatperiod-end|129,280,447.38|129,280,447.38|
|III.Impairmentprovision|||
|1.Balanceatperiod-beginning|||
|2.Increasedamountoftheperiod|||
|(1)Withdrawal|||
|3.Decreasedamountoftheperiod|||
|（1）Dispose|||
|（2）Otherout|||
|4.Balanceatperiod-end|||
|IV.Bookvalue|||
|1.Bookvalueatperiod-end|175,368,491.53|175,368,491.53|
|2.Bookvalueatperiod-beginning|179,324,547.77|179,324,547.77|

(2)Detailsoffixedassetsfailedtoaccomplishcertificationofproperty
□Applicable√Notappliucable
13.Fixed assets
(1)Listoffixedassets
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Houses&buildings|Machineryeqiupment|Transportations|Other|Total|
|I.Originalprice||||||
|1.Balanceatperiod-beginning|492,709,415.27|655,711,038.75|3,691,157.72|20,981,709.48|1,173,093,321.22|
|2.Increaseinthecurrentperiod||192,124.81||446,110.18|638,234.99|
|(1)Purchase||192,124.81||446,110.18|638,234.99|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||||
|-|-|-|-|-|-|
|（2）Transferredfromconstructioninprogress||||||
|(3)IncreasedofEnterpriseCombination||||||
|3.Decreasedamountoftheperiod||19,951.61||71,580.00|91,531.61|
|（1）Disposal||19,951.61||71,580.00|91,531.61|
|4.Balanceatperiod-end|492,709,415.27|655,883,211.95|3,691,157.72|21,356,239.66|1,173,640,024.60|
|II.Accumulateddepreciation||||||
|1.Openingbalance|99,253,511.93|333,568,124.02|3,015,711.94|13,570,685.77|449,408,033.66|
|2.Increasedamountoftheperiod|7,175,844.02|28,268,533.31|126,369.36|814,964.80|36,385,711.49|
|(1)Withdrawal|7,175,844.02|28,268,533.31|126,369.36|814,964.80|36,385,711.49|
|3.Decreaseinthereportingperiod||9,753.27||67,848.41|77,601.68|
|（1）Disposal||9,753.27||67,848.41|77,601.68|
|4.Closingbalance|106,429,355.95|361,826,904.06|3,142,081.30|14,317,802.16|485,716,143.47|
|III.Impairmentprovision||||||
|1.Openingbalance||||||
|2.Increaseinthereportingperiod||||||
|（1）Withdrawal||||||
|3.Decreaseinthereportingperiod||||||
|（1）Disposal||||||
|4.Closingbalance||||||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||||
|-|-|-|-|-|-|
|IV.Bookvalue||||||
|1.Bookvalueoftheperiod-end|386,280,059.32|294,056,307.89|549,076.42|7,038,437.50|687,923,881.13|
|2.Bookvalueoftheperiod-begin|393,455,903.34|322,142,914.73|675,455.78|7,411,023.71|723,685,287.56|

14.Project underconstruction
(1)Projectunderconstruction
In RMB
||||||||
|-|-|-|-|-|-|-|
|Items|Year-endbalance|||Year-beginningbalance|||
||Bookbalance|Provisionfordevaluation|Bookvalue|Bookbalance|Provisionfordevaluation|Bookvalue|
|TFT-LCDpolarizingfilmIIproject|249,984,154.45||249,984,154.45|116,849,202.46||116,849,202.46|
|Other|2,955,028.97||2,955,028.97|2,955,028.97||2,955,028.97|
|Total|252,939,183.42||252,939,183.42|119,804,231.43||119,804,231.43|

 (2)Changesofsignificantconstructioninprogress
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name|Budget|Amountatyearbeginning|Increaseatthisperiod|Transferredtofixedassets|Otherdecrease|Balanceinyear-end|Proportion(%)|Progressofwork|Capitalisationofinterestaccumulatedbalance|Including：Currentamountofcapitalizationofinterest|Capitalisationofinterestratio（%)|Sourceoffunds|
|TFT-LCDpolarizingfilmIIproject|700,340,000.00|116,849,202.46|133,134,951.99|||249,984,154.45|35.69%|35.69%||||Collect|
|Total|700,340,000.00|116,849,202.46|133,134,951.99|||249,984,154.45|--|--||||--|

15.Liquidationoffixedassets
In RMB
||||
|-|-|-|
|Items|Endofterm|Beginningofterm|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||
|-|-|
|SmallsafesandTFTfrontsectionviscometerscrapcleaning|10,418.34|
|Total|10,418.34|

16.Productive biological assets
(1)Measuredbycost
□Applicable√Notapplicable
(2)Measuredbyfairvalue
□Applicable√Notapplicable
17.Oil-and-gas assets
□Applicable√Notapplicable
18.Intangibleassets
（1）Information
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Landuseright|Patentright|Non-proprietarytechnology|Software|Total|
|I.Originalprice||||||
|1.Openingbalance|48,822,064.61|11,825,200.00||2,143,580.00|62,790,844.61|
|2.Increasedamountoftheperiod||||358,200.00|358,200.00|
|(1)Purchase||||358,200.00|358,200.00|
|(2)InternalDevelopment||||||
|(3)IncreasedofEnterpriseCombination||||||
|3.Decreasedamountoftheperiod||||||
|（1）Disposal||||||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||
|-|-|-|-|-|
|4.Balanceatperiod-end|48,822,064.61|11,825,200.00|2,501,780.00|63,149,044.61|
|II.Accumulatedamortization|||||
|1.Balanceatperiod-beginning|10,323,775.51|11,825,200.00|943,214.78|23,092,190.29|
|2.Increaseinthecurrentperiod|480,049.14||150,946.32|630,995.46|
|(1)Withdrawal|480,049.14||150,946.32|630,995.46|
|3.Decreasedamountoftheperiod|||||
|（1）Disposal|||||
|4.Balanceatperiod-end|10,803,824.65|11,825,200.00|1,094,161.10|23,723,185.75|
|III.Impairmentprovision|||||
|1.Balanceatperiod-beginning|||||
|2.Increaseinthecurrentperiod|||||
|(1)Withdrawal|||||
|3.Decreasedamountoftheperiod|||||
|（1）Disposal|||||
|4.Balanceatperiod-end|||||
|4.Bookvalue|||||
|1.Bookvalueatperiod-end|38,018,239.96||1,407,618.90|39,425,858.86|
|2.Bookvalueatperiod-beginning|38,498,289.10||1,200,365.22|39,698,654.32|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 19.Goodwill
(1)Originalbookvalueofgoodwill
In RMB
||||||
|-|-|-|-|-|
|Nameoftheinvesteesortheeventsformedgoodwill|Openingbalance|Increase|Decrease|Closingbalance|
|Shenzhen Beauty Century Garment CoLtd.|.,2,167,341.21|||2,167,341.21|
|Shenzhen Shenfang Import and ExporCo.,Ltd.|t82,246.61|||82,246.61|
|Shenzhen Shengbo OptoelectroniTechnologyCo.,Ltd|c9,614,758.55|||9,614,758.55|
|Total|11,864,346.37|||11,864,346.37|

（2）Impairmentofgoodwill
In RMB
||||||
|-|-|-|-|-|
|Investee|Balanceinyear-begin|Increasedatthisperiod|.Decreasedatthisperiod|Balanceinyear-end|
|Shenzhen Beauty Century Garment CoLtd.|.,2,167,341.21|||2,167,341.21|
|Shenzhen Shenfang Import and ExporCo.,Ltd.|t82,246.61|||82,246.61|
|Shenzhen Shengbo OptoelectroniTechnologyCo.,Ltd|c9,614,758.55|||9,614,758.88|
|Total|11,864,346.37|||11,864,346.37|

 20.Long term amortizeexpenses
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Balance inyear-begin|Increase in this|Amortizedexpenses|Otherloss|Balanceinyear-end|
|||period||||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||
|-|-|-|-|-|
|Renovationfee|735,718.08|24,650.00|129,296.98|631,071.10|
|Other|237,363.60||19,263.00|218,100.60|
|Total|973,081.68|24,650.00|148,559.98|849,171.70|

 21.Deferred income tax assets/deferred incometax liabilities
（1）Detailsoftheun-recognizeddeferredincometaxassets
In RMB
||||||
|-|-|-|-|-|
|Items|Balanceinyear-end||Balanceinyear-begin||
||Deductibletemporarydifference|Deferredincometaxassets|Deductibletemporarydifference|Deferredincometaxassets|
|Assets depreciationreserves|5,212,652.64|1,303,163.16|4,114,242.48|1,028,560.61|
|Unattained internal salesprofits|2,725,207.97|408,781.20|2,769,765.25|415,464.80|
|Changesinfairvalueofavailableforsalefinancialassets|128,145.29|32,036.32|561,867.81|140,466.95|
|Total|8,066,005.90|1,743,980.68|7,445,875.54|1,584,492.36|

 (2)Detailsoftheun-recognizeddeferredincometaxliabilities
In RMB
||||||
|-|-|-|-|-|
|Items|TemporarilyDeductableorTaxableDifference|DeferredIncomeTaxliabilities|TemporarilyDeductableorTaxableDifference|DeferredIncomeTaxliabilities|
|Deferredincometaxassets/||1,743,980.68||1,584,492.36|

(3)Detailsofunrecognieddeferredincometaxassets
In RMB
||||
|-|-|-|
|Items|Balanceinyear-end|Balanceinyear-begin|
|Deductibletemporarydifference|86,089,479.45|85,972,557.55|
|Deductibleloss|495,981,968.38|486,014,140.23|
|Total|582,071,447.83|571,986,697.78|

（4）Deductiblelossesoftheun-recognizeddeferredincometaxassetwillexpireinthefollowingyears
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 In RMB
|||||
|-|-|-|-|
|Year|Balanceinyear-end|Balanceinyear-begin|Remark|
|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|124,700,902.79|124,700,902.79||
|2022|9,967,828.15|||
|Total|495,981,968.38|486,014,140.23|--|

22.Short-term loan
（1）Categoriesofshort-termloans
In RMB
||||
|-|-|-|
|Items|Balanceinyear-end|Balanceinyear-Beginning|
|Creditloans|37,917,157.74|12,335,695.77|
|Total|37,917,157.74|12,335,695.77|

 23.Derivative financial liabilities
□Applicable√Notapplicable
24.Account payable
（1）Accountpayable
In RMB
||||
|-|-|-|
|Items|Balanceinyear-end|Balanceinyear-begin|
|Within1year|133,547,809.08|174,417,235.90|
|1-2years|73,646.37|57,989.27|
|2-3years|50,450.66|300,642.80|
|3-4years|261,559.23|37,090.00|
|4-5years|28,930.20|161,238.93|
|Over5years|557,417.88|487,518.82|
|Total|134,519,813.42|175,461,715.72|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 25.Advance account
（1） Advanceaccount
In RMB
||||
|-|-|-|
|Items|Balanceinyear-end|Balanceinyear-begin|
|Within1year|41,443,205.97|29,225,153.57|
|1-2years||433,268.34|
|Over5years|639,024.58|639,024.58|
|Total|42,082,230.55|30,297,446.49|

 26.PayableEmployee wage
（1）PayableEmployeewage
In RMB
||||||
|-|-|-|-|-|
|Items|Balanceinyear-begin|Increaseinthisperiod|Payableinthisperiod|Balanceinyear-end|
|I.Short-termemployeebenefits|27,379,719.86|56,138,249.89|66,130,011.45|17,387,958.30|
|II.Post-employmentbenefits||5,004,073.92|5,004,073.92||
|III.Terminationbenefit||195,715.00|195,715.00||
|Total|27,379,719.86|61,338,038.81|71,329,800.37|17,387,958.30|

（2）Short-termremuneration
In RMB
||||||
|-|-|-|-|-|
|Items|Balanceinyear-begin|Increaseinthisperiod|Payableinthisperiod|Balanceinyear-end|
|1.Wages,bonuses,allowancesandsubsidies|25,906,098.18|43,987,738.76|54,135,400.46|15,758,436.48|
|2.Employeewelfare||3,290,543.93|3,290,543.93||
|3.Socialinsurancepremiums||5,227,517.19|5,227,517.19||
|Including：Medicalinsurance||770,516.32|770,516.32||
|Workinjuryinsurance||107,051.12|107,051.12||
|Maternityinsurance||109,975.58|109,975.58||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||
|-|-|-|-|-|
|4.Publicreservesforhousing||2,320,496.98|2,320,496.98||
|5.Unionfundsandstaffeducationfee|1,473,621.68|1,311,953.03|1,156,052.89|1,629,521.82|
|Total|27,379,719.86|56,138,249.89|66,130,011.45|17,387,958.30|

（3）Definedcontributionplanslisted
In RMB
||||||
|-|-|-|-|-|
|Items|Balanceinyear-begin|Increaseinthisperiod|Payableinthisperiod|Balanceinyear-end|
|1.Basicold-ageinsurancepremiums||4,094,199.74|4,094,199.74||
|2.Unemploymentinsurance||145,774.43|145,774.43||
|3.Annuitypayment||764,099.75|764,099.75||
|Total||5,004,073.92|5,004,073.92||

27.Tax Payable
In RMB
||||
|-|-|-|
|Items|Atendofterm|Atbeginningofterm|
|VAT|488,297.87|6,142,344.63|
|EnterpriseIncometax|6,114,483.49|4,152,120.51|
|IndividualIncometax|816,541.93|428,263.53|
|CityConstructiontax|30,391.65|523,339.31|
|HousepropertyTax|1,538,455.99|1,538,122.93|
|Educationsurcharge|19,199.11|373,812.63|
|Other|158,648.01|837,722.65|
|Total|9,166,018.05|13,995,726.19|

 28.Interest Payable
In RMB
||||
|-|-|-|
|Items|Atendofterm|Atbeginningofterm|
|Interestonlong-termborrowingspayable|44,446,217.66|42,805,384.31|
|Interestonshort-termborrowings|195,135.86|37,221.21|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Total|44,641,353.52|42,842,605.52|

 29.Other payable
（1）Disclosurebynature
In RMB
||||
|-|-|-|
|Items|Atendofterm|Atbeginningofterm|
|EngineeringEquipmentfund|61,436,137.45|46,903,714.95|
|Unitaccount|19,106,787.92|49,538,660.22|
|Deposit|18,753,042.55|24,625,922.69|
|Other|46,452,961.62|26,040,292.33|
|Total|145,748,929.54|147,108,590.19|

 30.Non-currentliabilitiesduewithin1year
In RMB
||||
|-|-|-|
|Items|Atendofterm|Atbeginningofterm|
|Long-termborrowingsduewithin1year||40,000,000.00|
|Total||40,000,000.00|

 31.Long-term borrowings
（1）Long-termtermborrowings
In RMB
||||
|-|-|-|
|Items|Atendofterm|Atbeginningofterm|
|Creditborrowings|80,000,000.00|80,000,000.00|
|Total|80,000,000.00|80,000,000.00|

 32.Deferred income
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Beginningofterm|Increasedthisterm|Decreasedthisterm|Endofterm|Reason|
|GovemmentSubsidy|110,045,784.62||2,251,961.43|107,793,823.19||
|Total|110,045,784.62||2,251,961.43|107,793,823.19|--|

Detailsofgovernmentsubsidies：
In RMB
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||
|-|-|-|-|-|-|-|
|Items|Beginningofterm|Newsubsidyincurrentperiod|Amounttransferredtonon-operationalincome|Otherchanges|Endofterm|Asset-relatedorincome-related|
|Textile specialfunds|857,142.88||71,428.57||785,714.31|Relatedtoassets|
|High-techIndustrializationdemonstrationprojects|600,000.00||100,000.00||500,000.00|Relatedtoassets|
|National grantfundsfor new flatpanel displayindustry|3,000,000.00||500,000.00||2,500,000.00|Relatedtoassets|
|Borrowingdiscount|725,833.20||120,972.25||604,860.97|Relatedtoassets|
|Grant funds forTFT-LCDpolarizer industryproject|6,933,333.34||649,999.98||6,283,333.36|Relatedtoassets|
|Grant funds forTFT-LCDpolarizer narrowline (line 5)project|3,000,000.00||250,000.02||2,749,999.98|Relatedtoassets|
|Purchase ofimportedequipment andtechnology|1,027,197.18||87,545.09||939,652.09|Relatedtoassets|
|Innovation andventure capitalfor TFT-LCDpolarierIproject|300,000.00||25,000.02||274,999.96|Relatedtoassets|
|Shenzhenpolarizingmaterials andTechnologyEngineeringLaboratoryinnovationventurecapital|412,500.00||25,000.02||387,499.98|Relatedtoassets|
|Shenzzhen|4,125,000.00||250,000.02||3,874,999.98|Relatedtoassets|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||
|-|-|-|-|-|
|Engineeringlaboratorypolarizingmaterial andtechnicalengineeting|||||
|Capital fundingfor TechnologyCenter|2,475,000.00|150,000.00|2,325,000.00|Relatedtoassets|
|Subsidy funds tosupport theintroduction of advancedtechnology|86,328.60|7,194.00|79,134.60|Relatedtoassets|
|Grant funds forTFT-LCDpolarizer narrowline (line 6)project|15,000,000.00||15,000,000.00|Relatedtoassets|
|Grant funds forTFT-LCDpolarizer narrowline (line 6)project|10,000,000.00||10,000,000.00|Relatedtoassets|
|Grant funds forTFT-LCDpolarizer narrowline (line 6)project|500,000.00||500,000.00|Relatedtoassets|
|Importedequipment andtechnology ofdiscount interestfunds|857,705.00||857,705.00|Relatedtoassets|
|key technologyresearch anddevelopment projectsof opticalcompensationfilmforpolarizer|5,000,000.00||5,000,000.00|Relatedtoassets|
|StrategicindustriesDevelopmentfund ofGuangdong|25,000,000.00||25,000,000.00|Relatedtoassets|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||
|-|-|-|-|-|
|Province|||||
|Grants ofPurchaseequipment ofTFT-LCDpolarizing filmphaseIIproject|30,000,000.00||30,000,000.00|Relatedtoassets|
|Energy savingtransformationgrantfunds|145,744.42|14,821.46|130,922.96|Relatedtoassets|
|Total|110,045,784.62|2,251,961.43|107,793,823.19|--|

Othernotes：
（1）According to the "Notice on National Development and Reform Commission to the General Office of the textile project management of the special funds" (Faigaiban[2006]2841), on December 22, 2006, the Company received "Textile special" funds RMB 2,000,000.00 from Shenzhen Finance Bureau.The company will use14yearsasassetdepreciationperiodforamortizationwiththecorrespondingequipmentincurrentperiod.The amortization in accordance with the corresponding equipment, The other income in current period is RMB71,428.57,theendingbalanceofuncompletedamortizationisRMB785,714.31
(2)AccordingtothedocumentofShenzhenMunicipalDevelopmentandReformCommission【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 BureauofFinancefortheconstructionof“TheProjectoftheConstructionLine ofPolaripiece forTFT-LCD”.Our company will use 10 years as asset depreciation period for amortization in current period. The other income in currentperiodisRMB100,000.00andthebalanceamountofunfinishedfinalamortizationisRMB500,000.00. (3)AccordingtothedocumentoftheOfficeoftheStateDevelopmentandReformCommissionon"TheOfficeof theStateDevelopmentandReform CommissionontheReplyofNewFlat-PanelDisplayIndustrialization SpecialProject”(DevelopmentandReformOfficeHigh-Tech【2008】No.2104),thecompanyobtainedthestatesubsidies 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 DevelopmentandReform Commission RMB 10,000,000.00.Ourcompany will use10years as assetdepreciation period for amortization.The other income in currentperiod is RMB500,000.00, the balance amount of unfinished finalamortizationisRMB2,500,000.00.
（4）On December 2009 ,June 2011and February 2013, the Company received a loan interest discountfunds 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 other income in current period is RMB 120,972.25 and the balance amount of unfinished final
amortizationisRMB604,860.97.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 (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 other income in current period is RMB649,999.98. and the balance amount of unfinishedfinalamortizationisRMB6,283,333.36.
(6)AccordingtotheNoticeaboutthePlanforSupportingtheSecondGroupofEnterprisesinBiological,Internet, New Energy and New Material Industries with Special Development Funds (Shen Fa Gai (2011) No. 1782), the Companyreceived subsidyofRMB 5,000,000.00forthe narrow-width line(line 5)ofphase-I projectofpolarizer 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 other income in current period is RMB250,000.02 and the balance amountofunfinishedfinalamortizationisRMB2,749,999.98.
(7)OnOctober2013,Thecompanyreceivedthegrants forthepurchaseofimportedequipmentandtechnologyin 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.Theother income in current period is RMB87,545.09 and the balance amountofunfinishedfinalamortizationisRMB939,652.09.
(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 other income in current period is RMB25,000.02 and the balance amount of unfinishedfinalamortizationisRMB274,999.96.
(9) 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 other income in current period is RMB25,000.02 and the balance amount of unfinishedfinalamortizationisRMB387,499.98.
(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 developmentof strategic new industries in Shenzhen in 2012
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 (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 instrumentsandequipmentandimprovingexistingtechnologicalequipmentandtestconditions.Thefundgapwill 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 other income in current period is RMB250,000.02andthebalanceamountofunfinishedfinalamortizationisRMB3,874,999.98.
(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,thecompanyhasreceivedthefundingsubsidyofRMB3 millionforthe constructionofthetechnicalcenter. theCompanyplannedtoamortizethesubsidyover10yearsaccordingtothedepreciationperiodofrelevantassets. The other income in currentperiod is RMB150,000.00 and the balanceamount of unfinished finalamortization is RMB2,325,000.00.
(12)OnMarch2014thecompanyreceived theintroductionofadvancedtechnologyimportsubsidyfundsofRMB 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 other income in current period is RMB7,194.00 and thebalanceamountofunfinishedfinalamortizationisRMB79,134.60.
(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 assetsgetreadyforintendeduse.
(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 10,000,000.00inDecember 2014.Thefundgap will befilledbythe Companythrough raisingfundsbyitself. 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 amortizedoverthedepreciationperiodfromthedaywhenrelevantassetsgetreadyforintendeduse;
(16)OnSeptember2014，ThecompanyreceivedadiscountofimportedequipmentandtechnologyfundsofRMB 857,705.00.The fund gap will be filled by the Company through raising funds by itself. The subsidy will be amortizedoverthedepreciationperiodfromthedaywhenrelevantassetsgetreadyforintendeduse.
(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
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 Committee. The company will defer income share transferred in the current profit and loss on the basis of depreciationlifeasofthedateofthepredeterminedworkabilitystatetherelatedassetsreach.
(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,On December 2015, the Company received 20 million RMB of the pilot project fund( period II project of TFT-LCD polarizer).OnOctober 2016,the Companyreceived 5millionRMB of Shenzhenstrategic emergingindustries and the future development of industrial matching funds,The company will defer income share transferred in the current profit and loss on the basis of depreciation life as of the date of the predetermined workability state the relatedassetsreach.
(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 30 million RMB of new production line of TFT-LCD polarizer project period II and equipment purchase subsidy in August 2015 ,December 2015 and September 2016.The company will defer income share transferred in the current profit and loss on the basis of depreciationlifeasofthedateofthepredeterminedworkabilitystatetherelatedassetsreach.
(20) In 2015 and In 2016, the Company received the subsidy funds of 202,608.00 RMB and 34,535.45 RMB on energy-saving reconstruction, amortized by 8-year depreciation life of the relevant asset, the no business income was14,821.46RMBatthecurrentperiod,theendingbalancewithoutamortizationwas130,922.96RMB
33.Stock capital
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Balanceinyear-begin|Changed（+，-）|||||Balanceinyear-end|
|||Issuanceofnewshare|Bonusshares|Capitalizationofpublicreserve|Other|Subtotal||
|Totalofcapitalshares|506,521,849.00||||||506,521,849.00|

34.Capital reserves
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginningbalance|Increaseinthecurrentperiod|Decreaseinthecurrentperiod|Year-endbalance|
|Sharepremium|1,826,482,608.54|||1,826,482,608.54|
|Other|10,722,643.41|||10,722,643.41|
|Total|1,837,205,251.95|||1,837,205,251.95|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 35.Other Comprehensiveincome
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Items|Year-beginningbalance|Amountofcurrentperiod|||||Year-endbalance|
|||Amountfortheperiodbeforeincometax|Less ：Previously recognized in profitorlossinother comprehensiveincome|Less：Incometax|After-taxattributabletotheparentcompany|After-taxattributabletominorityshareholders||
|2.Othercomprehensiveincomereclassifiabletoprofitorlossinsubsequentperiods|3,392,222.07|34,401.72||108,430.63|-74,028.91||3,318,193.16|
|Gainsandlossesfromchangesinfairvalueoffinancialassetsavailableforsale|1,789,105.39|433,722.52||108,430.63|325,291.89||2,114,397.28|
|Translationdifferencesoffinancialstatementsdenominated|603,116.68|-399,320.80|||-399,320.80||1,203,795.88|
|Totalofothercomprehensiveincome|3,392,222.07|34,401.72||108,430.63|-74,028.91||3,318,193.16|

 36.Special reserves
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginningbalance|Increaseinthecurrentperiod|Decreaseinthecurrentperiod|Year-endbalance|
|Statutorysurplusreserve|73,710,682.05|||73,710,682.05|
|Total|73,710,682.05|||73,710,682.05|

 37.Retained profits
In RMB
||||
|-|-|-|
|Items|Amountofthisperiod|Amountoflastperiod|
|Beforeadjustments:Retainedprofitsattheperiodend|-81,275,828.76|9,166,137.97|
|Afteradjustments:Retainedprofitsattheperiodbeginning|-81,275,828.76|9,166,137.97|
|Add:NetprofitattributabletoownersoftheCompanyfortheperiod|14,457,841.63|-87,270,604.54|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Less:Appropriationtostatutorysurplusreserve||3,171,362.19|
|Retainedprofitsattheperiodend|-66,817,987.13|-81,275,828.76|

 38.Business income, Businesscost
In RMB
||||||
|-|-|-|-|-|
|Items|Amountofcurrentperiod||Amountofpreviousperiod||
||Income|Cost|Income|Cost|
|Mainbusiness|563,241,779.76|507,497,595.29|549,898,612.98|509,134,763.07|
|Otherbusiness|176,095,977.11|170,119,600.50|2,258,972.58|2,114,934.57|
|Total|739,337,756.87|677,617,195.79|552,157,585.56|511,249,697.64|

 39.Business tax and subjoin
In RMB
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|Urbanconstructiontax|1,877,415.61|175,298.23|
|Educationsurcharge|1,341,011.11|127,629.51|
|Housetaxes|2,827,811.60|1,028,950.29|
|Businesstax||1,683,641.93|
|Other|542,779.53|111,418.07|
|Total|6,589,017.85|3,126,938.03|

 40.Sales expenses
In RMB
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|Wage|1,442,735.16|1,204,137.01|
|Exhibitionfee|128,319.69|144,038.99|
|Businessexpenses|344,967.24|420,563.34|
|Transportationchanges|1,507,900.57|1,655,766.13|
|Samplesandproductloss|170,061.25|369,885.00|
|Other|413,059.23|721,619.16|
|Total|4,007,043.14|4,516,009.63|

41.Administrative expenses
In RMB
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|Wage|18,043,421.42|16,718,507.40|
|Propertyinsurance|144,107.56|151,170.29|
|Repaircharge|351,038.26|97,758.00|
|Businessentertainment|394,601.48|718,023.30|
|Travelexpenses|400,427.52|511,070.78|
|Officeexpenses|351,040.92|579,632.65|
|Waterandelectricity|1,310,312.83|363,586.77|
|Tax||2,353,718.22|
|Lawsuitexpenses||175,591.27|
|Agencyexpenses|1,163,200.26|1,460,232.39|
|R&D|10,940,877.48|15,804,933.22|
|Boardfees|29,223.00|54,038.00|
|Other|3,718,815.43|3,221,999.30|
|Depreciationoffixedassets|3,360,019.17|3,298,774.50|
|Amortizationofintangibleassets|630,995.46|589,675.55|
|Amortization of long-term deferredexpenses||15,483.48|
|Lowconsumablesamortization|8,487.70|10,060.00|
|Total|40,846,568.49|46,124,255.12|

 42.FinancialExpenses
In RMB
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|Interestexpenses|2,240,228.08|2,623,711.45|
|Interestincome|-17,274,220.29|-14,044,416.50|
|Exchangeloss|1,753,688.28|19,620,000.69|
|Feesandother|1,242,947.35|773,521.92|
|Total|-12,037,356.58|8,972,817.56|

 43.Loss ofassets impairment
In RMB
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|I.Lossesforbaddebts|522,788.58|2,320,690.69|
|II.Lossesforfallingpriceofinventory|30,137,044.41|6,252,416.77|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Total|30,659,832.99|8,573,107.46|

 44.Investment income
In RMB
||||
|-|-|-|
|Items|Amountofthisperiod|Amountoflastperiod|
|Investment income from the disposal oflong-termequityinvestment|1,620,115.63|711,998.34|
|Hold the investment income during fromavailable-for-salefinancialassets|526,586.44|1,555,194.95|
|Other|20,808,333.32||
|Total|22,955,035.39|2,267,193.29|

 45.Other income
In RMB
||||
|-|-|-|
|Source|Amountofcurrentperiod|Amountofpreviousperiod|
|GovernmentSubsidy|5,143,961.90||

46.Non-Operation income
In RMB
|||||
|-|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|Recordedintheamountofthenon-recurringgainsandlosses|
|Totalgainsfromdisposalofnon-currentassets|1,510.00|||
|Including：Gainsfromdisposaloffixedassets|1,510.00|||
|GovernmentSubsidy|517,000.00|2,165,711.40||
|Other|9,910.24|132,509.01||
|Total|528,419.77|2,298,220.41||

Governmentsubsidyreckonedintocurrentgains/losses
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Items|Issuingsubject|Reason|Nature|Whethertheimpactofsubsidiesonthecurrentprofitand|Whetherspecialsubsidies|Amountofcurrentperiod|Amountofpreviousperiod|Assets-related/income-related|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||
|-|-|-|-|-|-|-|
||||loss||||
|Amortizationofhigh-techindustrializationdemonstrationprojectmatchingfunds|Subsidy|Becausecompanyworkonspecificindustrythatcountryencourageandsupport,thecompanyreceivedgrants(accordingtonationalpolicylegallyobtained)|No|No|100,000.00|Relatedtoassets|
|New-styleindustrializationofflatpaneldisplayamortizationofStatesubsidyfundsforspecialprojects|Subsidy|Becausecompanyworkonspecificindustrythatcountryencourageandsupport,thecompanyreceivedgrants(accordingtonationalpolicylegallyobtained)|No|No|500,000.00|Relatedtoassets|
|Shenzhenmunicipalfinancialtransferloanamortizationofdiscount|Subsidy|Becausecompanyworkonspecificindustrythatcountryencourageandsupport,thecompanyreceivedgrants(accordingtonationalpolicylegallyobtained)|No|No|120,972.24|Relatedtoassets|
|AmortizationofsubsidyfortheindustrializationprojectofpolarizerforTFT-LCD|Subsidy|Becausecompanyworkonspecificindustrythatcountryencourageandsupport,thecompanyreceivedgrants(accordingtonationalpolicylegallyobtained)|No|No|649,999.98|Relatedtoassets|
|GrantfundsforTFT-LCDpolarizernarrowline(line5)project|Subsidy|Becausecompanyworkonspecificindustrythatcountryencourageandsupport,thecompanyreceivedgrants(accordingtonationalpolicylegallyobtained)|No|No|250,000.02|Relatedtoassets|
|Purchaseofimportedequipmentandtechnology|Subsidy|Becausecompanyworkonspecificindustrythatcountryencourageandsupport,thecompanyreceivedgrants(according|No|No|87,545.10|Relatedtoassets|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||||||
|-|-|-|-|-|-|-|-|
|||tonationalpolicylegallyobtained)||||||
|Innovation andventure capitalfor TFT-LCDpolarierIproject|Subsidy|Becausecompanyworkonspecificindustrythatcountryencourageandsupport,thecompanyreceivedgrants(accordingtonationalpolicylegallyobtained)|No|No||25,000.02|Relatedtoassets|
|Shenzhenpolarizingmaterials andTechnologyEngineeringLaboratoryinnovationventurecapital|Subsidy|Becausecompanyworkonspecificindustrythatcountryencourageandsupport,thecompanyreceivedgrants(accordingtonationalpolicylegallyobtained)|No|No||25,000.02|Relatedtoassets|
|ShenzzhenEngineeringlaboratorypolarizingmaterial andtechnicalengineeting|Subsidy|Becausecompanyworkonspecificindustrythatcountryencourageandsupport,thecompanyreceivedgrants(accordingtonationalpolicylegallyobtained)|No|No||250,000.02|Relatedtoassets|
|Capital fundingfor TechnologyCenter|Subsidy|Becausecompanyworkonspecificindustrythatcountryencourageandsupport,thecompanyreceivedgrants(accordingtonationalpolicylegallyobtained)|No|No||150,000.00|Relatedtoassets|
|Subsidyfundstosupporttheintroductionofadvancedtechnology|Subsidy|Becausecompanyworkonspecificindustrythatcountryencourageandsupport,thecompanyreceivedgrants(accordingtonationalpolicylegallyobtained)|No|No||7,194.00|Relatedtoassets|
|ShenzhenCityMarketandSupervisionandManagementCommission|Subsidy|Becauseresearchanddevelopment,technicalupdatesandtransformationofsubsidies|No|No|17,000.00||Relatedtoearnings|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|allocatedintellectualpropertypatentgrant|||||||||
|ShenzhenScienceandTechnologyInnovationCommitteeallocated2016annualscienceandtechnologyaward||Subsidy|Becauseresearchanddevelopment,technicalupdatesandtransformationofsubsidies|No|No|500,000.00||Relatedtoearnings|
|Total|--|--|--|No|No|517,000.00|2,165,711.40|--|

 47Non-currentexpenses
InRMB
|||||
|-|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|Theamountofnon-operatinggains&lossed|
|Total of non-current assetDispositionloss|3,281.59|20,770.93||
|Incl: loss of fixed assetsdisposition|3,281.59|20,770.93||
|Other|196.77|58.85||
|Total|3,478.36|20,829.78||

48Income tax expenses
(1)Incometaxexpenses
InRMB
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|Currentincometaxexpense|7,902,446.59|6,088,398.09|
|Deferredincometaxexpense|-159,488.32|-1,851,202.65|
|Total|7,742,958.27|4,237,195.44|

(2)Reconciliationofaccountprofitandincometaxexpenses：
InRMB
|||
|-|-|
|Items|Amountofcurrentperiod|
|Totalprofits|20,279,393.89|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||
|-|-|
|Incometaxcomputedinaccordancewiththeapplicabletaxrate|5,069,848.47|
|EffectofdifferenttaxrateapplicabletothesubsidiaryCompany|-149,999.08|
|Influenceofincometaxbeforeadjustment|46,012.28|
|Influenceofnontaxableincome|-186,675.52|
|Impactofnon-deductiblecosts,expensesandlosses|4,000.00|
|The current period does not affect the deferred tax assetsrecognizeddeductibletemporarydifferencesordeductibleloss|2,959,772.12|
|Incometaxexpense|7,742,958.27|

 49.Other comprehensive income
MoredetailscanbeseeninNote35.
50.Items of Cashflowstatement
（1）Othercashreceivedfrombusinessoperation
In RMB
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|GovernmentSubsidy|3,409,000.00|2,165,711.40|
|Bankdepositinterestincomeandother|32,239,684.61|30,907,810.95|
|Total|35,648,684.61|33,073,522.35|

 Notes：
(2)Othercashpaidrelatedtoopratingactivities
In RMB
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|R&D|10,940,877.48|15,804,933.22|
|OfficeExpense|351,040.92|579,633.65|
|Businessfee|739,568.72|1,138,586.64|
|Travelexpenses|400,427.52|511,070.78|
|Transportationfee|1,507,900.57|1,655,776.13|
|AgencyCharge|1,163,200.26|1,460,232.39|
|Insuranceexpenses|144,107.56|151,170.29|
|Insuranceexpenses|1,310,312.83|2,258,972.58|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Rentalfee|351,038.26|236,364.98|
|Exhibitionexpenses|128,319.69|144,038.99|
|Other|75,148,367.33|32,355,682.11|
|Total|92,185,161.14|56,296,461.76|

 (3)Cashreceivedrelatedtootherinvestmentactivities
In RMB
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|Fractionaldividend||6.38|
|Structureddeposits,financialproducts,principalandincome|2,205,083,032.64||
|Total|2,205,083,032.64|6.38|

 (4).Cashpaidrelatedtootherinvestmentactivities
In RMB
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|Structuredepositinvestment|1,883,000,000.00|368,000,000.00|
|Total|1,883,000,000.00|368,000,000.00|

（5）Othercashreceivedinrelationtofinancingactivities
In RMB
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|Obtainloansfromaffiliatedparties|6,809,000.00||
|Total|6,809,000.00||

51.SupplementInformation forcash flowstatement
（1）SupplementInformationforcashflowstatement
In RMB
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|I.Adjustingnetprofittocashflowfromoperatingactivities|--|--|
|Netprofit|12,536,435.62|-30,097,851.40|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Add:Impairmentlossprovisionofassets|-164,403.72|-13,629,724.46|
|Depreciationoffixedassets,oilandgasassetsandconsumablebiologicalassets|40,264,166.05|37,072,204.67|
|Amortizationofintangibleassets|630,995.46|589,675.55|
|AmortizationofLong-termdeferredexpenses|148,559.98|153,604.01|
|Lossonscrapoffixedassets|3,281.59||
|Financialcost|-13,992,394.49|21,494,287.45|
|Lossoninvestment|-22,955,035.39|-2,267,193.29|
|Decreaseindeferredincometaxassets|159,488.32|-240,628.26|
|Increasedofdeferredincometaxliabilities||-278,469.57|
|Decreaseofinventories|-13,178,629.92|14,425,655.98|
|Deceaseofoperatingreceivables|-56,290,615.85|-77,223,450.49|
|IncreasedofoperatingPayable|-45,338,248.59|10,685,694.47|
|Netcashflowsarisingfromoperatingactivities|-98,176,400.94|-39,316,195.34|
|II.Significantinvestmentandfinancingactivitiesthatwithoutcashflows:|--|--|
|3．Movementofcashandcashequivalents：|--|--|
|Endingbalanceofcash|1,017,636,623.46|665,289,786.79|
|Less:Beginningbalanceofcashequivalents|930,114,436.57|748,658,875.60|
|Netincreaseofcashandcashequivalents|87,522,186.89|-83,369,088.81|

 (2)Compositionofcashandcashequivalents
InRMB
||||
|-|-|-|
|Items|Year-endbalance|Year-beginningbalance|
|I.Cash|1,017,636,623.46|930,114,436.57|
|Including：Cashathand|16,523.96|22,807.86|
|Demandbankdeposit|1,015,320,995.68|928,279,046.07|
|Demandothermonetaryfunds|2,299,103.82|1,812,582.64|
|III.Balanceofcashandcashequivalentsattheperiodend|1,017,636,623.46|930,114,436.57|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 52.Foreign currency monetary items
(1)Foreigncurrencymonetaryitems
InRMB
|||||
|-|-|-|-|
|Items|Closingforeigncurrencybalance|Exchangerate|ClosingconverttoRMBbalance|
|Including：USD|3,376,176.45|6.7744|22,871,569.74|
|HKD|175,388.67|0.86792|152,223.33|
|JPY|1,501,017.00|0.060485|90,789.01|
|Including：USD|6,873,634.63|6.7744|46,564,750.44|
|HKD|278,280.00|0.86792|241,524.78|
|Prepayment||||
|Including：USD|1,151,820.19|6.7744|7,802,890.70|
|JPY|1,296,000.00|0.060485|78,388.56|
|Otherreceivable||||
|Including：USD|37,399.02|6.7744|253,355.92|
|Short–termloans||||
|Including：USD|2,097,385.58|6.7744|14,208,528.87|
|JPY|391,975,347.00|0.060485|23,708,628.86|
|Accountreceivable||||
|Including：USD|13,659,004.25|6.7744|92,531,558.39|
|JPY|728,260,506.04|0.060485|44,048,836.71|
|Otherpayable||||
|Including：USD|1,081,000.00|6.7744|7,323,126.40|
|Euro|22,500.00|7.7496|174,366.00|
|HKD|2,019,468.33|0.86792|1,752,736.95|

 (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 caseofanychangeinfunctioncurrency,thecauseshouldbedisclosed.
□Applicable√Notapplicable
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 VIII.Equity in otherentity
1.Equityinsubsidiary
（1）Constituteofenterprisegroup
||||||||
|-|-|-|-|-|-|-|
|Subsidiary|Mainoperation|Registeredplace|Businessnature|Share-holdingratio||Acquiredway|
|||||Directly|Indirectly||
|ShenzhenLishiIndustryDevelopmentCo.,Ltd|Shenzhen|Shenzhen|Domestictrade,PropertyManagement|100.00%||Establish|
|ShenzhenHuaqiangHotel|Shenzhen|Shenzhen|Accommodation,restaurants,businesscenter;|100.00%||Establish|
|ShenfangPropertyManagementCo.,Ltd.|Shenzhen|Shenzhen|PropertyManagement|100.00%||Establish|
|ShenzhenBeautyCenturyGarmentCo.,Ltd.|Shenzhen|Shenzhen|Productionoffullyelectronicjacquardknittingwholeshape|100.00%||Establish|
|ShenzhenShengboOphotoelectricTechnologyCo.,Ltd|Shenzhen|Shenzhen|Polarizerproductionandsales|60.00%||Purchase|
|ShenzhenShenfangImport&exportCo.,Ltd.|Shenzhen|Shenzhen|Operatingimportandexportbusiness||60.00%|Establish|
|Shengtou(Hongkong)Co.,Ltd.|Hongkong|Hongkong|Productionandsalesofpolarizer||60.00%|Establish|

（2）Significantnotwholly-ownedsubsidiaries
InRMB
||||||
|-|-|-|-|-|
|Name|Holdingproportionofnon-controllinginterest|Profitorlossattributabletonon-controllinginterest|Dividenddeclaredtonon-controllinginterest|Closingbalanceofnon-controllinginterest|
|ShenzhenShengboOphotoelectric|40.00%|-3,750,772.54||1,092,904,549.22|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||
|-|
|TechnologyCo.,Ltd|

（3）Mainfinancialinformationofsignificantnotwholly-ownedsubsidiaries
InRMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Subsidiaries|Closingbalance||||||Beginningbalance||||||
||Currentassets|Non-currentassets|Totalassets|Currentliabilities|Non-currentLiabilities|Totalliabilities|Currentassets|Non-currentassets|Totalassets|Currentliabilities|Non-currentLiabilities|Totalliabilities|
|ShenzhenShengboOphotoelectricTechnologyCo.,Ltd|2,233,500,664.69|943,817,184.34|3,177,317,849.03|259,115,777.68|186,877,185.92|445,992,963.60|2,430,237,623.43|844,274,184.45|3,274,511,807.88|344,767,093.78|189,042,897.32|445,992,963.60|

In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Subsidiaries|Currentterm||||Lastterm||||
||Operatingrevenue|Netprofit|Totalcomprehensiveincome|Cashflowfromoperatingactivities|Operatingrevenue|Netprofit|Totalcomprehensiveincome|Cashflowfromoperatingactivities|
|ShenzhenShengboOphotoelectricTechnologyCo.,Ltd|377,252,892.13|-9,376,931.35|-9,376,931.35|-129,287,756.72|370,391,808.49|-48,666,956.37|-48,666,956.37|-88,012,720.78|

2.ThetransactionoftheCompanywithitsowner’sequitysharechangedbutstillcontrollingthesubsidiary(1)Notetoowner’sequitysharechangedinsubsidiary
According to Capital Increase Agreement of Shenzhen Shengbo Optoelectronic Technology Co.,Ltd jointly signed by the company, Shenzhen Shengbo Optoelectronic Technology Co.,Ltd, Hangzhou Jinjiang Group Co., Ltd and Hangzhou Jin Hang Equity Investment Fund Partnership (limited partnership)-which was set up by HangzhouJinjiangGroupCo.,LtdandHangzhouJinjiangGroupCo.,Ltdistheactualcontroller,JinHangEquity Investment-as the main capital increase body-subscribed40% stake of Shenzhen Shangbo Optoelectronic Technology Co.,Ltd, and the amount of capital increase was RMB 1,352,640,000.00, and such amount of capital increase was received in the account before December 27, 2016.After this capital increase, the stake of Shengbo
OptoelectronicTechnologyCo.,Ltdheldbythecompanywasdownto60.00%from100%.
After the capital increase, the minority shareholders' interests calculated according to the net assets of Shenzhen
Shengbo OptoelectronicTechnology Co.,Ltd is RMB 1,100,564,805.80(basedonthe dataof December 31,2016),
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 and the difference of the above-said amount of capital increase is adjusted for the consolidated statement with capitalreserveofRMB252,075,194.20.
(3).Equityinjointventurearrangementorassociatedenterprise
1．Jointventureorassociatedenterprise
||||||||
|-|-|-|-|-|-|-|
|Jointventureorassociatedenterprise|Placeofoperation|Placeofregistration|Nature|Holdingproportion(%)||Theaccountingtreatmentofinvestmentinassociates|
|||||Directly|Indirectly||
|ShenzhenHaohaoPropertyLeasingCo.,Ltd.|Shenzhen|Shenzhen|Propertyleasing|50.00%||Equitymethod|
|ShenzhenXieliAutomobileCo.,Ltd.|Shenzhen|Shenzhen|Propertyleasing|50.00%||Equitymethod|
|ShenzhenChanglianfaPrintinganddyeingCompany|Shenzhen|Shenzhen|Propertyleasing|40.25%||Equitymethod|
|JordanGarmentFactory|Jordan|Jordan|Manufacturing|35.00%||Equitymethod|
|YehuiInternationalCo.,Ltd.|Hongkong|Hongkong|Manufacturing|22.75%||Equitymethod|

2.TheSummarizedFinancialInformationofUnimportantJointVenturesandAssociatedEnterprises InRMB
||||
|-|-|-|
||Year-endbalance/Amountofcurrentperiod|Year-beginningbalance/Amountofpreviousperiod|
|Jointventure：|--|--|
|Totalbookvalueoftheinvestment|8,853,123.69|9,083,538.02|
|Totalamountoftheproratacalculationofthefollowingitems|--|--|
|--Netprofit|-230,414.33|890,393.17|
|--Totalcomprehensiveincome|-230,414.33|890,393.17|
|Associatedenterprise：|--|--|
|Totalbookvalueoftheinvestment|15,607,558.14|15,765,772.98|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||
|-|-|-|
|Totalamountoftheproratacalculationofthefollowingitems|--|--|
|--Netprofit|450,529.96|577,010.12|
|--OtherComprehensiveincome|-399,320.80|1,436,844.30|
|--Totalcomprehensiveincome|51,209.16|2,013,854.42|

 (4)Significantcommonoperation
|||||||
|-|-|-|-|-|-|
|Name|Mainoperatingplace|Registrationplace|Businessnature|Proportion/shareportion||
|||||Directly|Indirectly|
|GuanhuaBuilding|Shenzhen|Shenzhen|Cooperate|50.16%||

Othernotes
Accordingto thecompanyalongwith HongkongQiaohuiIndustriesCo.,Ltd. signed"Agreementoncoopera tivedevelopmentandconstructionofGuanhuabuilding",jointly developedGuanhuabuildingconstruction,thecompanyinvested50.16%,HongQiaoHuiIndustrialCo.,Ltd.invested49.84%,thetwosidesneedtoagreematters affectingthecooperationprojects.
GuanhuaBuildingprojecthasbeencompletedinthecurrentreportingperiod,andthetwoparitiescarriedoutthesplitaccordingtotheactualinvestmentratioof50.16%and49.84%.
IX.Risks Related toFinancialInstruments
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 manageandmonitortheserisksandensureaboveriskstobecontrolledwithincertainscope.
（I）CreditRisk
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, thecompanyshallregularlymonitorthedebtor’scredithistory.Withregardtothebadcreditrecordforthedebtor,the company shall adopt the written reminder, shortening or cancel of credit period to ensure the overall credit risks withinthecontrollablescope.
（II）Marketrisk
Marketriskoffinancialinstrumentarisesfromchangesinfairvalueorfuturecashflowoffinancialinstruments
affectedbymarketprice.Marketrisksincludesforeignexchangeriskandinterestrisk.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 (1)InterestRateRisk
Theinterestrateriskfacedbythecompanyismainlyfromthebankborrowings.Thecompanyisfacedtheinterest rateriskofthecashflowduetothefinancialliabilityofthefloatinginterestrate,andfacedtheinterestrateriskof the fair value due to the financial liability of the fixed interest rate. The company shall determine the relative proportioninthefixedandfloatinginterestratecontracts.
(2)ForeignExchangeRisk
The foreign exchange risks facedby the company are mainly from the financialassets and liabilities basedon the price of US dollar and JPY. The company matches the income and expenditure of foreign currency as far as possibleinordertoreducetheforeignexchangerisk.
（III）Liquidityrisk
Liquidity risk refers to fund shortage problems whenfulfilling obligations settled in cashorother financialassets. The company shall guarantee to have the sufficient funds to repay the debts through monitoring the cash balance, themarketablesecuritiesavailabletobecashandtherollingforecastforthefuturecashflow.
X. Thedisclosureofthefairvalue
1.Closingfairvalueofassetsandliabilitiescalculatedbyfairvalue
InRMB
||||||
|-|-|-|-|-|
|Items|Closingfairvalue||||
||Firvaluemeasurementitemsatlevel1|Firvaluemeasurementitemsatlevel2|Firvaluemeasurementitemsatlevel3|Total|
|I.Consistentfairvaluemeasurement|--|--|--|--|
|(1).Availableforsalefinancialassets|8,812,453.02|||8,812,453.02|
|1.Equityinstrumentinvestment|8,812,453.02|||8,812,453.02|
|TotalofConsistentfairvaluemeasurement|8,812,453.02|||8,812,453.02|
|II.Non–persistentmeasure|--|--|--|--|

2.Marketpricerecognitionbasisforconsistentandinconsistentfairvaluemeasurementitemsatlevel The fair value of financial assets available for sale at the end of period is measured based on the closing price of
ShenzhenStockExchangeonJune30,2017.
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 XI.Related parties and related-party transactions
1.Parentcompanyinformationoftheenterprise
|||||||
|-|-|-|-|-|-|
|Name|Registeredaddress|Nature|Registeredcapital（RMB’0000）|TheparentcompanyoftheCompany'sshareholdingratio|TheparentcompanyoftheCompany’svoteratio|
|ShenzhenInvestment HoldingsCo.,Ltd.|18/F,InvestmentBuilding,ShennanRoad,FutianDistrict,Shenzhen|Equityinvestment,Real-estateDevelopmentandGuarantee|2,158,000.00|46.21%|49.39%|

Notes
Thecompanyisauthorizedandapprovedtobestate-ownedindependentcompanybyShenzhenGovernment,and itExecutesfinancialcontributorfunctiononstate-ownedenterprisewithinauthorizationscope.
The finial control of the Company was ShenzhenPeople’s Govemment state owned assets supervision& AdministrationCommission.
2.SubsidiariesoftheCompany
DetailsrefertotheNoteVIII-1,Interestinthesubsidiary
3.InformationonthejointventuresandassociatedenterprisesoftheCompany
DetailsrefertotheNoteVIII-3,Interestsinjointventuresorassociates
4.OtherRelatedpartiesinformation
|||
|-|-|
|Otherrelatedparty|RelationshiptotheCompany|
|ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.|Subjecttothesamepartycontrols|
|ShenzhenTianmaMicroelectronicsCo.,Ltd.|ChairmanoftheBoardIstheViceChairmanoftheCompany|
|Shengbo （HK）Co.,Ltd.|TheCompanyExecutivesareDirectorofthecompany|
|ShenzhenXiangjiangTradeCo.,Ltd.|SharingCompany|
|ShenzhenXinfangKnittingCo.,Ltd.|SharingCompany|
|ShenzhenDailishiUnderwearCo.,Ltd.|SharingCompany|
|AnhuiHuapengTextileCo.,Ltd.|SharingCompany|
|KunshanJinlinOptoelectronicMaterialCo.,Ltd.|OnthesubsidiaryShenzhenShengboOptoelectronicsTechnologyCo.,Ltd.hasasignificantimpactontheactualcontroloftheshareholderscontrolledbytheenterprise|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||
|-|-|
|ZhejiangJinhaoOptoelectronicMaterialCo.,Ltd.|OnthesubsidiaryShenzhenShengboOptoelectronicsTechnologyCo.,Ltd.hasasignificantimpactontheactualcontroloftheshareholderscontrolledbytheenterprise|

5. Related transactions.
（1）Relatedtransactionsonpurchasinggoodsandreceivingservices
Acquisitionofgoodsandreceptionoflaborservice
In RMB
|||||
|-|-|-|-|
|Relatedparty|Content|Amountofcurrentperiod|Amountofpreviousperiod|
|Shenzhen TianmaMicroelectronicsCo.,Ltd.|Salespolarizersheet|3,044,298.73|957,463.47|

(2)Rewardsforthekeymanagementpersonnel
In RMB
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|Rewardsforthekeymanagementpersonnel|1,897,026.00|1,869,653.00|

（3）Otherrelatedtransactions
FortheconstructionoftheprojectofpolarizersheetforTFT-LCD,theCompanysignedEntrustedLoanContract 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 ofRMB 200 million to the Company.The term ofthe 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 entrustedloanistherateofcommercialloanswithatermof5yearsquotedbyPeople'sBankofChinaminus2%.Incaseof adjustment of such commercial loan rate, the rate of commercial loans with a term of 5 years after adjustment minus2%shallapplyas interestrateofentrustedloanfrom thefirst dayofthenext monthafter the adjustmentof basicinterestrate.AsofJune30,2017,TheCompanyactuallyreceivedaloanofRMB80million.
6.Receivablesandpayablesofrelatedparties
（1）Receivables
InRMB
|||||||
|-|-|-|-|-|-|
|Name|Relatedparty|Amountatyearend||Amountatyearbeginning||
|||BalanceofBook|BaddebtProvision|BalanceofBook|BaddebtProvision|
|Accountreceivable|ShenzhenTianmaMicroelectronicsCo.,Ltd.|2,004,949.89|100,247.49|256,427.69|12,821.38|
|OtherAccount|AnhuiHuapengTextile|2,700,000.00|135,000.00|3,600,000.00|270,000.00|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||||
|-|-|-|-|-|-|
|receivable|Company|||||
|OtherAccountreceivable|ShenzhenDailishiUnderwearCo.,Ltd.|0.00|0.00|300,048.12|15,002.41|
|OtherAccountreceivable|KunshanJinlinOptoelectronicMaterialCo.,Ltd.|15,738,000.00|786,900.00|||
|OtherAccountreceivable|ZhejiangJinhaoOptoelectronicMaterialCo.,Ltd.|36,395,640.50|1,819,782.03|||

（2）Payables
In RMB
|||||
|-|-|-|-|
|Name|Relatedparty|Amountatyearend|Amountatyearbeginning|
|Otherpayable|ShenzhenXinfangKnittingCo.,Ltd.|244,789.85|244,789.85|
|Otherpayable|ShenzhenXiangjiangTradeCo.,Ltd.|0.00|40,000.00|
|Otherpayable|ShenzhenChanglianfaPrintinganddyeingCo.,Ltd.|846,503.89|846,503.89|
|Otherpayable|ShenzhenHaohaoPropertyLeasingCo.,Ltd.|5,304,489.85|4,954,489.85|
|Otherpayable|YehuiInternationalCo.,Ltd.|7,953,264.42|1,214,994.65|
|Otherpayable|Shengbo（Hongkong）Co.,Ltd.|315,000.00|315,000.00|
|Interestpayable|ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.|44,446,217.66|42,805,384.31|

XII.Notes s ofmain items infinancialreports ofparentcompany
（1）Accountreceivable
1.Classificationaccountreceivables.
InRMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Classification|Amountinyear-end|||||Amountinyear-begin|||||
||Bookbalance||Baddebtprovision||Bookvalue|Bookbalance||Baddebtprovision||Bookvalue|
||Amount|Proportio|Amount|Proportion(||Amount|Proporti|Amount|Proportion||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||n(%)||%)|||on(%)||(%)||
|Accountsreceivablesubjecttoimpairmentassessmentbycreditriskcharacteristicsofaportfolio|754,308.80|100.00%|37,715.43|5.00%|716,593.37|518,920.00|100.00%|25,945.99|5.00%|492,974.01|
|Total|754,308.80|100.00%|37,715.43|5.00%|716,593.37|518,920.00|100.00%|25,945.99|5.00%|492,974.01|

Receivableaccountswithlargeamountindividuallyandbaddebtprovisionswereprovided.
□Applicable√Notapplicable
Accountreveivableonwhichbaddebtproisionsareprovidedonagebasisinthegroup
√Applicable□Notapplicable
InRMB
|||||
|-|-|-|-|
|Aging|Balanceinyear-end|||
||Accountreceivable|Baddebtprovision|Proportion(%)|
|SubitemWithin1year||||
||754,308.80|37,715.43|5.00%|
|Total|754,308.80|37,715.43|5.00%|

Notes：
Notesofthebasisofrecognizingthegroup:
Inthegroups,accountsreceivableadoptingbalancepercentagemethodtowithdrawbaddebtprovision：□Applicable√Notapplicable
Inthegroups,Receivableaccountsonwhichhaddebtprovisionsareprovidedbyotherwaysintheportfolio（2）Accrualperiod,recoveryorreversalofbaddebtssituation
ThecurrentamountofprovisionforbaddebtsisRMB11,769.44.
\
2.Otherreceivable
1．ClassificationofOtherreceivable
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Classification|Amountinyear-end|||||Amountinyear-begin||||
||BookBalance||Baddebtprovision||Bookvalue|BookBalance||Baddebtprovision||
||Amount|Proportion(%)|Amount|Proportion(%)||Amount|Proportion(%)|Amount|Proportion(%)|
|Other accountsreceivable of|11,981,464.60|53.96%|11,981,464.60|100.00%||11,981,464.60|41.08%|11,981,464.60|100.00%|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|individualsignificance andsubject to individualimpairmentassessment|||||||||||
|Other accountsreceivable subject toimpairmentassessment by creditrisk characteristics ofaportfolio|9,910,533.14|44.64%|682,020.76|6.88%|9,228,512.38|16,870,177.62|57.85%|4,345,920.87|25.76%|12,524,256.75|
|Other accountsreceivable ofindividualinsignificance butsubject to individualimpairmentassessment|311,486.35|1.40%|311,486.35|100.00%||311,486.35|1.07%|311,486.35|100.00%||
|Total|22,203,484.09|100.00%|12,974,971.71||9,228,512.38|29,163,128.57|100.00%|16,638,871.82||12,524,256.75|

 Otherreceivableaccountswithlargeamountandwereprovidedhaddebtprovisionsindividuallyatendofperiod.
√Applicable□Notapplicable
In RMB
||||||
|-|-|-|-|-|
|Debtor|Amountinyear-end||||
||Otheraccountreceivable|Baddebtprovision|Withdrawalproportion(%)|Reasonforallowance|
|Jiangxi Xuanli String Co.,Ltd.|11,389,044.60|11,389,044.60|100.00%|Unabletorecover|
|Shenzhen TianlongInduatry&TradeCo.,Ltd.|592,420.00|592,420.00|100.00%|Unabletorecover|
|Total|11,981,464.60|11,981,464.60|--|--|

Inthegroups,otheraccountsreceivableadoptingaginganalysismethodtowithdrawbaddebtprovision:√Applicable□Notapplicable
In RMB
|||||
|-|-|-|-|
|Aging|Amountinyear-end|||
||Otherreceivable|Baddebtprovision|Withdrawalproportion|
|Subitemwithin1year||||
||8,251,631.66|412,568.52|5.00%|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
|||||
|-|-|-|-|
|Within1year|8,251,631.66|412,568.52|5.00%|
|1-2years|1,400,000.00|140,000.00|10.00%|
|Over3year|258,901.48|129,452.24|50.00%|
|Total|9,910,533.14|682,020.76||

Notes：
OtherreceivableaccountinGrouponwhichbaddebtprovisionswereprovidedonpercentagebasis：
□Applicable√Notapplicable
OtherReceivableaccountsonwhichbaddebtprovisionsareprovidedbyotherwaysintheportfolio：
□Applicable√Notapplicable
（2）Baddebtprovisionaccrualcollectedorswitchback
ThewithdrawalamountofthebaddebtprovisionduringthereportingperiodwasofRMB170,000.00;Theamount ofthereversedorcollectedpartduringthereportingperiodwasofRMB3,833,900.11.
(3)Otheraccountreceivablescategorybynatureofmoney
In RMB
||||
|-|-|-|
|Category|Year-endbalance|Year-beginningbalance|
|Internalcurrentaccount|7,075,831.24|12,244,280.72|
|Unitaccount|15,091,837.85|16,806,675.87|
|Other|35,815.00|112,171.98|
|Total|22,203,484.09|29,163,128.57|

 (4)Top5oftheclosingbalanceoftheotheraccountsreceivablecolletedaccordingtothearrearsparty
In RMB
|||||||
|-|-|-|-|-|-|
|Name|Nature|Year-endbalance|Age|Portion in total otherreceivables(%)|Baddebtprovisionofyear-endbalance|
|First|Unitaccount|11,389,044.60|Over3years|51.29%|11,389,044.60|
|Second|Unitaccount|7,075,600.00|1-2years|31.87%|457,800.00|
|Third|Unitaccount|1,800,000.00|Within1year|8.11%|90,000.00|
|Fourth|Unitaccount|592,420.00|Over3years|2.67%|296,210.00|
|Fifth|Unitaccount|146,176.80|Over3years|0.66%|73,088.40|
|Total|--|21,003,241.40|--|94.59%|12,306,143.00|

3.Long-termequityinvestment
InRMB
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||
|-|-|-|-|-|-|-|
|Items|Year-endbalance|||Year-beginningbalance|||
||Bookbalance|Baddebtprovision|Bookvalue|Bookbalance|Baddebtprovision|Bookvalue|
|Investmenttothesubsidiary|1,980,806,395.91|16,582,629.30|1,964,223,766.61|1,980,806,395.91|16,582,629.30|1,964,223,766.61|
|Investment tojointventuresandassociatedenterprises|24,727,336.82|266,654.99|24,460,681.83|25,115,965.99|266,654.99|24,849,311.00|
|Total|2,005,533,732.73|16,849,284.29|1,988,684,448.44|2,005,922,361.90|16,849,284.29|1,989,073,077.61|

（1）Investmenttothesubsidiary
InRMB
||||||||
|-|-|-|-|-|-|-|
|Name|Openingbalance|Increase|Decrease|Closingbalance|Withdrawnimpairmentprovisioninthereportingperiod|Closingbalanceofimpairmentprovision|
|ShenzhenShengboOptoelectrioncTechnologyCo.,Ltd.|1,924,663,070.03|||1,924,663,070.03||14,415,288.09|
|ShenzhenLisiIndustrialDevelopmentCo.,Ltd.|8,073,388.25|||8,073,388.25|||
|ShenzhenBeautyCentrutyGarmentCo.,Ltd.|30,867,400.00|||30,867,400.00||2,167,341.21|
|ShenzhenHuaqiangHotal|15,489,351.08|||15,489,351.08|||
|ShenfangPropertyManagementCo.,Ltd.|1,713,186.55|||1,713,186.55|||
|Total|1,980,806,395.91|||1,980,806,395.91||16,582,629.30|

（2）Investmenttojointventuresandassociatedenterprises
InRMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Name|Openingbalance|Increase/decreaseinreportingperiod||||||||Closingbalance|Closingbalanceof|
|||Addinvestmen|Decreased|Gain/lossof|Adjustmentof|Otherequity|Declarationofcash|Withdrawn|Other|||

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||t|investment|Investment|othercomprehensiveincome|changes|dividendsorprofit|impairmentprovision||impairmentprovision|
|I.Jointventures|||||||||||
|ShenzhenHaohaoPropertyLeasingCo.,Ltd.|5,106,487.57|||-230,414.33|||||4,876,073.24||
|ShenzhenXieliAutomobile Co.,Ltd.|4,243,705.44||||||||4,243,705.44|266,654.99|
|Subtotal|9,350,193.01|||-230,414.33|||||9,119,778.68|266,654.99|
|II.Associatedenterprises|||||||||||
|ShenzhenChanglianfaPrintinganddyeingCompany|1,968,358.12|||57,430.75|||||2,025,788.87||
|JordanGarnentFactory|2,574,327.77|||-326,511.57|-56,469.01||||2,191,347.19||
|YehuiInternational Co.,Ltd.|11,223,087.09|||719,610.78|-342,851.79||209,424.00||11,390,422.08||
|Subtotal|15,765,772.98|||450,529.96|-399,320.80||209,424.00||15,607,558.14||
|Total|25,115,965.99|||220,115.63|-399,320.80||209,424.00||24,727,336.82|266,654.99|

 4.BusinessincomeandBusinesscost
InRMB
||||||
|-|-|-|-|-|
|Items|Amountofcurrentperiod||Amountofpreviousperiod||
||Businessincome|Businesscost|Businessincome|Businesscost|
|Income from Main|30,244,081.73|4,477,749.55|29,952,072.64|4,007,116.78|

ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017
||||||
|-|-|-|-|-|
|Business|||||
|OtherBusinessincome|1,605,516.30|1,605,516.29|1,646,987.54|1,646,987.54|
|Total|31,849,598.03|6,083,265.84|31,599,060.18|5,654,104.32|

 5.Investmentincome
InRMB
||||
|-|-|-|
|Items|Amountofcurrentperiod|Amountofpreviousperiod|
|Incomefromlong-termequityinvestmentmeasuredbyadoptingthecostmethod||80,000.00|
|Incomefromlong-termequityinvestmentmeasuredbyadoptingtheEquitymethod|1,620,115.63|2,039,333.34|
|Investmentincomereceivedfromholdingofavailable-for–salefinancialassets|526,586.44|147,859.95|
|Total|2,146,702.07|2,267,193.29|

 XVIII.Supplement information
1.Particularsaboutcurrentnon-recurringgainsandloss
√Applicable□Notapplicable
InRMB
||||
|-|-|-|
|Items|Amount|Notes|
|Non-currentassetdisposalgain/loss(includingthewrite-offpartforwhichassetsimpairmentprovisionismade)|-1,771.59||
|Govemmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies)|5,660,961.90||
|Gain/lossonentrustingotherswithinvestmentorassetmanagement|20,808,333.32||
|Gain/lossonContingenteventsirrelevanttotheCompany’snormalbusiness|418,132.96||
|Othernon-businessincomeandexpendituresotherthantheabove|5,593,047.35||
|Less:Influencedamountofincometax|1,506,457.54||
|Influencedamountofminorshareholders’equity(aftertax)|12,228,218.24||
|Total|18,744,027.98|--|

Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 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 explanatoryannouncementasarecurrentgain/lossitem.
□Applicable√Notapplicable
2.Returnonnetassetandearnngspershare
|||||
|-|-|-|-|
|Profitofreportperiod|Weightedaverageretureoneqiuty(%)|Earningspershare||
|||Basicearningspershare(RMB/share）|Dilutedeqrningspershare(RMB/share)|
|NetprofitattributabletotheCommonstockshareholdersofCompany.|0.61%|0.03|0.03|
|NetprofitattributabletotheCommonstockshareholdersofCompanyafterdeductingofnon-recurringgain/loss.|-0.18%|-0.01|-0.01|

3.Differencesbetweenaccountingdataunderdomesticandoverseasaccountingstandards
(1)Differencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderinternationaland
Chineseaccountingstandards
□Applicable√Notapplicable
(2)Differencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderoverseasand
Chineseaccountingstandards
□Applicable√Notapplicable
XI．Documents
Available for Inspection
1.Financial statements bearing the seals and signatures of legal representative, the person in charge of accounting andaccountingdeptleader;
2.The originals of all theCompany’s documents and the original manuscripts of announcements publicly disclosedonthenewspapersdesignatedbyChinaSecuritiesRegulatoryCommissioninthereportperiod.
3.theoriginallegalrepresentativeofthecompanysignedtheoriginal2017semi-annualfinancialreport.
4.The above documents were completely placed at the Office of Secretaries of the Board of Directors of the
ShenzhenTextile(Holdings)Co.,Ltd.TheSemi-AnnualReport2017 Company.
TheBoardofDirectorsofShenzhenTextile(Holdings)Co.,Ltd. August26th,2017