Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Financial Report in 2014 August 21, 2014
Financial Report
1. Audit report
Has this semi-annual report been audited?
□ Yes√ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements:RMB
1. Consolidated balance sheet
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|1,055,610,139.91|949,317,213.07|
|Settlement provision|||
|Outgoing call loan|||
|Trading financial assets|||
|Bill receivable|31,290,852.77|19,031,515.21|
|Account receivable|161,467,358.31|138,422,205.01|
|Prepayments|56,097,505.25|21,031,777.16|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts|||
|receivable|||
|Interest receivable|8,224,480.14|6,226,199.59|
|Dividend receivable|||
|Other account receivable|24,821,661.87|140,270,310.59|
|Repurchasing of financial assets|||
|Inventories|226,419,152.77|203,810,815.20|
|Non-current asset due in 1 year|||
|Other current asset||100,000,000.00|

||||
|-|-|-|
|Total of current assets|1,563,931,151.02|1,578,110,035.83|
|Non-current assets：|||
|Loans and payment on other’s behalf|||
|disbursed|||
|Disposable financial asset|24,343,947.21|41,829,021.22|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|48,781,846.41|48,715,143.22|
|Property investment|144,192,931.65|147,480,587.85|
|Fixed assets|840,478,489.54|878,246,098.01|
|Construction in progress|85,854,860.37|62,917,215.99|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|42,925,579.33|43,878,071.37|
|R & D petrol|||
|Goodwill|9,614,758.55|9,614,758.55|
|Long-germ expenses to be amortized|580,586.16|835,279.18|
|Differed income tax asset|36,210,755.29|40,133,524.69|
|Other non-current asset|||
|Total of non-current assets|1,232,983,754.51|1,273,649,700.08|
|Total of assets|2,796,914,905.53|2,851,759,735.91|
|Current liabilities|||
|Short-term loans|9,742,632.72||
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Trade off financial liabilities|||
|Bill payable|||
|Account payable|116,543,248.19|108,297,855.85|
|Advance payment|62,901,687.38|31,672,395.99|
|Selling of repurchased financial|||
|assets|||

||||
|-|-|-|
|Fees and commissions receivable|||
|Employees’ wage payable|27,642,561.15|35,273,275.68|
|Tax payable|-78,663,533.63|-77,213,236.39|
|Interest payable|28,600,063.92|23,970,903.52|
|Dividend payable|||
|Other account payable|100,084,687.44|120,089,826.28|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|266,851,347.17|242,091,020.93|
|Non-current liabilities：|||
|Long-term loan|200,000,000.00|200,000,000.00|
|Bond payable|||
|Long-term payable|||
|Special payable|||
|Expected liabilities|||
|Differed income tax liability|4,075,141.42|60,228,995.93|
|Other non-current liabilities|61,095,698.93|51,593,141.94|
|Total of non-current liabilities|265,170,840.35|311,822,137.87|
|Total of liability|532,022,187.52|553,913,158.80|
|Owners’ equity|||
|Share capital|506,521,849.00|506,521,849.00|
|Capital reserves|1,595,215,820.42|1,606,525,169.42|
|Less：Shares in stock|||
|Special reserves|||
|Surplus reserves|59,801,735.10|59,801,735.10|
|Common risk provision|||
|Undistributed profit|103,353,313.49|124,997,823.59|
|Different of foreign currency|||
|translation|||
|Total of owner’s equity belong to the|2,264,892,718.01|2,297,846,577.11|

||||
|-|-|-|
|parent company|||
|Minority shareholders’ equity|||
|Total of owners’ equity|2,264,892,718.01|2,297,846,577.11|
|Total of liabilities and owners’ equity|2,796,914,905.53|2,851,759,735.91|

 Legal representative：Wang Bin
Person-in-charge of the accountingwork：Zhu Jun
Person-in -charge of the accountingorgan：Jiang Xiaojun
2. Balance sheet of Parent Company
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|454,165,302.55|365,620,681.34|
|Trading financial assets|||
|Bill receivable|||
|Account receivable|383,706.25|26,603.36|
|Prepayments|2,266,272.00|2,266,272.00|
|Interest receivable|3,727,262.15|5,203,000.01|
|Dividend receivable|||
|Other account receivable|65,108,580.90|162,531,389.65|
|Inventories|||
|Non-current asset due in 1 year|||
|Other current asset|||
|Total of current assets|525,651,123.85|535,647,946.36|
|Non-current assets：|||
|Disposable financial asset|24,343,947.21|41,829,021.22|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity|||
||1,822,338,354.49|1,822,271,651.30|
|investment|||
|Property investment|136,028,616.33|139,080,456.27|
|Fixed assets|28,041,772.44|29,101,578.28|

||||
|-|-|-|
|Construction in progress|25,038,407.19|22,003,109.19|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|1,939,971.60|2,050,543.64|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be|||
|amortized|||
|Differed income tax asset|4,022,059.23|5,299,239.57|
|Other non-current asset|||
|Total of non-current assets|2,041,753,128.49|2,061,635,599.47|
|Total of assets|2,567,404,252.34|2,597,283,545.83|
|Current liabilities|||
|Short-term loans|||
|Trade off financial liabilities|||
|Bill payable|||
|Account payable|411,743.57|411,743.57|
|Advance payment|639,024.58|639,024.58|
|Employees’ wage payable|3,881,934.95|6,012,522.26|
|Tax payable|8,670,076.64|4,076,158.54|
|Interest payable|||
|Dividend payable|||
|Other account payable|63,348,429.33|59,810,489.72|
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|76,951,209.07|70,949,938.67|
|Non-current liabilities：|||
|Long-term loan|||
|Bond payable|||
|Long-term payable|||
|Special payable|||
|Expected liabilities|||

||||
|-|-|-|
|Differed income tax liability|4,075,141.42|60,228,995.93|
|Other non-current liabilities|||
|Total of Non-current liabilities|4,075,141.42|60,228,995.93|
|Total of liability|81,026,350.49|131,178,934.60|
|Owners’ equity|||
|Share capital|506,521,849.00|506,521,849.00|
|Capital reserves|1,586,632,838.63|1,597,942,187.63|
|Less：Shares in stock|||
|Special reserves|||
|Surplus reserves|59,801,735.10|59,801,735.10|
|Provision of general risk|||
|Undistributed profit|333,421,479.12|301,838,839.50|
|Different of foreign currency|||
|translation|||
|Total of owners’ equity|2,486,377,901.85|2,466,104,611.23|
|Total of liabilities and owners’|||
||2,567,404,252.34|2,597,283,545.83|
|equity|||

Legal representative：Wang Bin
Person-in-charge of the accountingwork：Zhu Jun
Person-in -charge of the accountingorgan：Jiang Xiaojun
3.Consolidated Profit Statement
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|471,623,824.81|576,348,010.06|
|Incl：Business income|471,623,824.81|576,348,010.06|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|505,850,180.68|604,944,312.58|
|Incl：Business cost|434,138,124.26|527,913,970.56|
|Interest expense|||

||||
|-|-|-|
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Insurance policy dividend paid|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|3,584,141.74|4,563,456.68|
|Sales expense|5,101,502.04|4,096,726.20|
|Administrative expense|64,664,701.53|75,713,852.63|
|Financial expenses|-6,832,620.68|-13,929,247.57|
|Asset impairment loss|5,194,331.79|6,585,554.08|
|Add：Gains from change of fir|||
|value （“-”for loss）|||
|Investment gain（“-”for loss）|20,023,663.46|21,908,307.47|
|Incl: investment gains from|||
||541,081.40|421,730.17|
|affiliates|||
|Gains from currency exchange|||
|（“-”for loss）|||
|III. Operational profit （ “-”for|||
||-14,202,692.41|-6,687,995.05|
|loss|||
|Add：Non-business income|5,943,159.74|5,976,618.99|
|Less：Non business expenses|3,751.62|10,000.00|
|Incl：Loss from disposal of non-|||
||3,638.02||
|current assets|||
|IV.Total profit(“-”for loss)|-8,263,284.29|-721,376.06|
|Less：Income tax expenses|13,381,225.81|7,319,888.20|
|V. Net profit（“-”for net loss）|-21,644,510.10|-8,041,264.26|
|Including: Net profit realized by|||
|the entity taken over before the|||
|takover|||
|Net profit attributable to the|||
||-21,644,510.10|-8,041,264.26|
|owners of parent company|||
|Minority shareholders’ equity|||
|VI. Earnings per share：|--|--|
|（I）Basic earnings per share|-0.04|-0.02|
|(II)Diluted earnings per share|-0.04|-0.02|

||||
|-|-|-|
|VII. Other comprehensive income|-11,309,349.00|-1,531,360.83|
|VIII. Total comprehensive income|-32,953,859.10|-9,572,625.09|
|Total comprehensive income|||
|attributable to the owner of the|-32,953,859.10|-9,572,625.09|
|parent company|||
|Total comprehensive income|||
|attributable minority shareholders|||

Legal representative：Wang Bin
Person-in-charge of the accountingwork：Zhu Jun
Person-in -charge of the accountingorgan：Jiang Xiaojun
4. Profit statement of the Parent Company
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|30,655,348.44|30,483,599.05|
|Lessl：Business cost|5,529,444.88|6,096,505.49|
|Business tax and surcharge|2,531,708.11|3,226,976.57|
|Sales expense|||
|Administrative expense|13,207,769.32|15,558,850.89|
|Financial expenses|-7,772,697.14|-2,964,454.33|
|Asset impairment loss|-5,108,721.37|-391,398.70|
|Add：Gains from change of fir|||
|value （“-”for loss）|||
|Investment gain（“-”for loss）|19,366,549.89|44,006,427.51|
|Incl: investment gains from|||
||541,081.40|421,730.17|
|affiliates|||
|II. Operational profit（“-”for|||
||41,634,394.53|52,963,546.64|
|loss）|||
|Add：Non-business income|95,873.24||
|Less：Non- business expenses|||
|Incl：Loss from disposal of non-|||
|current assets|||
|III.Total profit(“-”for loss)|41,730,267.77|52,963,546.64|

||||
|-|-|-|
|Less：Income tax expenses|10,147,628.15|7,415,216.40|
|IV. Net profit（“-”for net loss）|31,582,639.62|45,548,330.24|
|V. Earnings per share：|--|--|
|（I）Basic earnings per share|||
|(II)Diluted earnings per share|||
|VI. Other comprehensive income|-11,309,349.00|-1,531,360.83|
|VII. Total comprehensive income|20,273,290.62|44,016,969.41|

 Legal representative：Wang Bin
Person-in-charge of the accountingwork：Zhu Jun
Person-in -charge of the accountingorgan：Jiang Xiaojun
5. Consolidated Cash flow statement
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating|||
|activities|||
|Cash received from sales of goods|||
||497,024,089.61|553,459,222.12|
|or rending of services|||
|Net increase of customer deposits|||
|and capital kept for brother|||
|company|||
|Net increase of loans from central|||
|bank|||
|Net increase of inter-bank loans|||
|from other financial bodies|||
|Cash received against original|||
|insurance contract|||
|Net cash received from|||
|reinsurance business|||
|Net increase of client deposit and|||
|investment|||
|Net increase of trade financial|||
|asset disposal|||
|Cash received as interest,|||

||||
|-|-|-|
|processing fee and commission|||
|Net increase of inter-bank fund|||
|received|||
|Net increase of repurchasing|||
|business|||
|Tax returned|46,604,162.52|53,614,798.93|
|Other cash received from business|||
||33,380,239.99|13,520,180.71|
|operation|||
|Sub-total of cash inflow|577,008,492.12|620,594,201.76|
|Cash paid for purchasing of|||
||521,676,998.47|598,394,828.97|
|merchandise and services|||
|Net increase of client trade and|||
|advance|||
|Net increase of savings n central|||
|bank and brother company|||
|Cash paid for original contract|||
|claim|||
|Cash paid for interest, processing|||
|fee and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for|||
||67,043,018.97|55,204,135.27|
|staffs|||
|Taxes paid|65,076,170.79|11,956,318.69|
|Other cash paid for business|||
||13,761,568.22|11,990,601.36|
|activities|||
|Sub-total of cash outflow from|||
||667,557,756.45|677,545,884.29|
|business activities|||
|Cash flow generated by business|||
||-90,549,264.33|-56,951,682.53|
|operation, net|||
|II.Cash flow generated by|||
|investing|||
|Cash received from investment|||
||19,302,132.19|22,053,747.37|
|retrieving|||
|Cash received as investment gains|1,418,603.30|1,519,830.85|
|Net cash retrieved from disposal|||
|of fixed assets, intangible assets,|53,383.91||
|and other long-term assets|||
|Net cash received from disposal|100,386,000.00||

||||
|-|-|-|
|of subsidiaries or other|||
|operational units|||
|Net cash received from disposal|||
|of subsidiaries or other|102,522,651.09||
|operational units|||
|Sub-total of cash inflow due to|||
||223,682,770.49|23,573,578.22|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets and|34,306,536.40|78,272,962.01|
|other long-term assets|||
|Cash paid as investment|||
|Net increase of loan against|||
|pledge|||
|Net cash received from|||
|subsidiaries and other operational|||
|units|||
|Other cash paid for investment|||
||500,000.00|300,000,000.00|
|activities|||
|Sub-total of cash outflow due to|||
||34,806,536.40|378,272,962.01|
|investment activities|||
|Net cash flow generated by|||
||188,876,234.09|-354,699,383.79|
|investment|||
|III.Cash flow generated by|||
|financing|||
|Cash received as investment||965,380,350.00|
|Incl: Cash received as investment|||
|from minor shareholders|||
|Cash received as loans|27,190,685.66|32,644,068.61|
|Cash received from bond placing|||
|Other financing –related ash|||
|received|||
|Sub-total of cash inflow from|||
||27,190,685.66|998,024,418.61|
|financing activities|||
|Cash to repay debts|18,073,479.58|72,797,503.09|
|Cash paid as dividend, profit, or|||
||56,000.00|579,124.83|
|interests|||
|Incl: Dividend and profit paid by|||
|subsidiaries to minor shareholders|||

||||
|-|-|-|
|Other cash paid for financing|||
|||775,000.00|
|activities|||
|Sub-total of cash outflow due to|||
||18,129,479.58|74,151,627.92|
|financing activities|||
|Net cash flow generated by|||
||9,061,206.08|923,872,790.69|
|financing|||
|IV. Influence of exchange rate|||
|alternation on cash and cash|826,612.36|-129,860.85|
|equivalents|||
|V.Net increase of cash and cash|||
||108,214,788.20|512,091,863.52|
|equivalents|||
|Add: balance of cash and cash|||
|equivalents at the beginning of|943,913,951.68|227,189,754.43|
|term|||
|VI.Balance of cash and cash|||
||1,052,128,739.88|739,281,617.95|
|equivalents at the end of term|||

Legal representative：Wang Bin
Person-in-charge of the accountingwork：Zhu Jun
Person-in -charge of the accountingorgan：Jiang Xiaojun
6. Cash flow statement of the Parent Company
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating|||
|activities|||
|Cash received from sales of goods|||
||30,326,814.40|30,339,632.40|
|or rending of services|||
|Tax returned||0.00|
|Other cash received from business|||
||24,230,912.08|30,518,720.56|
|operation|||
|Sub-total of cash inflow|54,557,726.48|60,858,352.96|
|Cash paid for purchasing of|||
||2,401,752.48|2,720,194.83|
|merchandise and services|||
|Cash paid to staffs or paid for|||
||9,047,048.85|9,995,476.97|
|staffs|||

||||
|-|-|-|
|Taxes paid|59,798,641.79|6,239,542.61|
|Other cash paid for business|||
||12,680,084.68|26,260,639.00|
|activities|||
|Sub-total of cash outflow from|||
||83,927,527.80|45,215,853.41|
|business activities|||
|Cash flow generated by business|||
||-29,369,801.32|15,642,499.55|
|operation, net|||
|II.Cash flow generated by|||
|investing|||
|Cash received from investment|||
||19,302,132.19|22,053,747.37|
|retrieving|||
|Cash received as investment gains|1,418,603.30|882,000.00|
|Net cash retrieved from disposal|||
|of fixed assets, intangible assets,|50,105.04||
|and other long-term assets|||
|Net cash received from disposal|||
|of subsidiaries or other|100,386,000.00||
|operational units|||
|Other cash receivable for|||
|investment activities|||
|Sub-total of cash inflow due to|||
||121,156,840.53|22,935,747.37|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets and|3,242,418.00|7,702,193.00|
|other long-term assets|||
|Cash paid as investment||760,000,000.00|
|Net cash received from|||
|subsidiaries and other operational|||
|units|||
|Other cash paid for investment|||
|activities|||
|Sub-total of cash outflow due to|||
||3,242,418.00|767,702,193.00|
|investment activities|||
|Net cash flow generated by|||
||117,914,422.53|-744,766,445.63|
|investment|||
|III.Cash flow generated by|||
|financing|||
|Cash received from absorbing||965,380,350.00|

||||
|-|-|-|
|investment|||
|Cash received as loans|||
|Cash received from bond placing|||
|Other financing –related ash|||
|received|||
|Sub-total of cash inflow from|||
|||965,380,350.00|
|financing activities|||
|Cash to repay debts|||
|Cash paid as dividend, profit, or|||
|interests|||
|Other cash paid for financing|||
|||775,000.00|
|activities|||
|Sub-total of cash outflow due to|||
||0.00|775,000.00|
|financing activities|||
|Net cash flow generated by|||
||0.00|964,605,350.00|
|financing|||
|IV. Influence of exchange rate|||
|alternation on cash and cash|||
|equivalents|||
|V.Net increase of cash and cash|||
||88,544,621.21|235,481,403.92|
|equivalents|||
|Add: balance of cash and cash|||
|equivalents at the beginning of|365,620,681.34|33,906,151.53|
|term|||
|VI.Balance of cash and cash|||
||454,165,302.55|269,387,555.45|
|equivalents at the end of term|||

Legal representative：Wang Bin
Person-in-charge of the accountingwork：Zhu Jun
Person-in -charge of the accountingorgan：Jiang Xiaojun
7. Consolidated Statement on Change inOwners’ Equity
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Amount in this period
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in this period||||||||||
|Items|Owner’s equity Attributable to the Parent Company||||||||||
||||||||||Minor|Total of|
||Share|Capital|Less:|Special|Surplu|Comm|Attribu|Other|sharehol|owners’|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Capital|reserve|Shares|ized|s|on risk|table|ders’|equity|
|||s|in|reserve|r eserve|provisi|profit|equity||
||||stock||s|on||||
||506,521|1,606,52|||59,801,||124,997,||2,297,846,|
|I.Balance at the end of last year||||||||||
||,849.00|5,169.42|||735.10||823.59||577.11|
|Add: Change of accounting||||||||||
|policy||||||||||
|Correcting of previous errors||||||||||
|Other||||||||||
|I.Balance at the beginning of|506,521|1,606,52|||59,801,||124,997,||2,297,846,|
|current year|,849.00|5,169.42|||735.10||823.59||577.11|
|||-|||||-||-|
|III.Changed in the current year||11,309,3|||||21,644,5||32,953,859|
|||49.00|||||10.10||.10|
||||||||-||-|
|（I） Net profit|||||||21,644,5||21,644,510|
||||||||10.10||.10|
|||-|||||||-|
|（II）Other misc.income||11,309,3|||||||11,309,349|
|||49.00|||||||.00|
|||-|||||-||-|
|Total of (I) and (II)||11,309,3|||||21,644,5||32,953,859|
|||49.00|||||10.10||.10|
|(III) Investment or decreasing||||||||||
|of capital by owners||||||||||
|1. Capital inputted by owners||||||||||
|2．Amount of shares paid and||||||||||
|accounted as owners’ equity||||||||||
|3. Other||||||||||
|（IV）Profit allotment||||||||||
|1.Providing of surplus reserves||||||||||
|2.Providing of common risk||||||||||
|provisions||||||||||
|3．Allotment to the owners (or||||||||||
|shareholders)||||||||||
|4．Other||||||||||
|(V) Internal transferring of||||||||||
|owners’ equity||||||||||

|||||||
|-|-|-|-|-|-|
|1. Capitalizing of capital||||||
|reserves (or to capital shares)||||||
|2. Capitalizing of surplus||||||
|reserves (or to capital shares)||||||
|3．Making up losses by||||||
|surplus reserves.||||||
|4. Other||||||
|(VI) Special reserves||||||
|1. Provided this year||||||
|2．Used this term||||||
|（VII）Other||||||
|IV. Balance at the end of this|506,521|1,595,21|59,801,|103,353,|2,264,892,718.01|
|term|,849.00|5,820.42|735.10|313.49||

 Amount in last year
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year||||||||||
||Owner’s equity Attributable to the Parent Company||||||||||
||||||||||Minor||
||||Less:||Surplu|Comm||||Total of|
|Items|||||||||||
|||Capital||Special|||Attribu||sharehol||
||Share||Shares||s|on risk||||owners’|
|||reserve||ized|||table|Other|ders’||
||Capital||in||reserve|provisi||||equity|
|||s||reserve|||profit||equity||
||||stock||s|on|||||
||336,521|828,913,|||36,607,||100,969,|||1,303,011,|
|I.Balance at the end of last year|||||||||||
||,849.00|137.67|||659.49||308.23|||954.39|
|Add：Retrospective|||||||||||
|adjustment caused by merger|||||||||||
|of entities under common|||||||||||
|control|||||||||||
|Add: Change of accounting|||||||||||
|policy|||||||||||
|Correcting of previous errors|||||||||||
|Other|||||||||||
|II.Balance at the beginning of|336,521|828,913,|||36,607,||100,969,|||1,303,011,|
|current year|,849.00|137.67|||659.49||308.23|||954.39|
|\ III.Changed in the current|170,000|777,612,|||23,194,||24,028,5|||994,834,62|
|year|,000.00|031.75|||075.61||15.36|||2.72|
||||||||47,222,5|||47,222,590|
|（I） Net profit|||||||||||
||||||||90.97|||.97|

|||||||
|-|-|-|-|-|-|
|||-|||-|
|（II）Other misc.income||14,138,9|||14,138,969|
|||69.10|||.10|
|||-||||
|||||47,222,5|33,083,621|
|Total of (I) and (II)||14,138,9||||
|||||90.97|.87|
|||69.10||||
|(III) Investment or decreasing|170,000|791,751,|||961,751,00|
|of capital by owners|,000.00|000.85|||0.85|
||170,000|791,751,|||961,751,00|
|1. Capital inputted by owners||||||
||,000.00|000.85|||0.85|
|2．Amount of shares paid and||||||
|accounted as owners’ equity||||||
|3. Other||||||
|||||-||
||||23,194,|||
|（IV）Profit allotment||||23,194,0||
||||075.61|||
|||||75.61||
|||||-||
||||23,194,|||
|1.Providing of surplus reserves||||23,194,0||
||||075.61|||
|||||75.61||
|2.Providing of common risk||||||
|provisions||||||
|3．Allotment to the owners (or||||||
|shareholders)||||||
|4．Other||||||
|(V) Internal transferring of||||||
|owners’ equity||||||
|1. Capitalizing of capital||||||
|reserves (or to capital shares)||||||
|2. Capitalizing of surplus||||||
|reserves (or to capital shares)||||||
|3．Making up losses by||||||
|surplus reserves.||||||
|4. Other||||||
|(VI) Special reserves||||||
|1. Provided this year||||||
|2．Used this term||||||
|（VII）Other||||||
|IV. Balance at the end of this|506,521|1,606,52|59,801,|124,997,|2,297,846,|

|||||||
|-|-|-|-|-|-|
|term|,849.00|5,169.42|735.10|823.59|577.11|

 Legal representative：Wang Bin
Person-in-charge of the accountingwork：Zhu Jun
Person-in -charge of the accountingorgan：Jiang Xiaojun
8. Statement of change inowner’s Equity of the Parent Company
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Amount in this period
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount in this period||||||||
||||Less:|Specializ||Common||Total of|
|Items|Share|Capital|||Surplus||Attributa||
||||Shares in|ed||risk||owners’|
||Capital|reserves|||reserves||ble profit||
||||stock|reserves||provision||equity|
||506,521,84|1,597,942,|||59,801,735||301,838,83|2,466,104,|
|I.Balance at the end of last year|||||||||
||9.00|187.63|||.10||9.50|611.23|
|Add: Change of accounting|||||||||
|policy|||||||||
|Correcting of previous errors|||||||||
|Other|||||||||
|II.Balance at the beginning of|506,521,84|1,597,942,|||59,801,735||301,838,83|2,466,104,|
|current year|9.00|187.63|||.10||9.50|611.23|
|||-|||||||
||||||||31,582,639|20,273,290|
|III.Changed in the current year||11,309,349|||||||
||||||||.62|.62|
|||.00|||||||
||||||||31,582,639|31,582,639|
|（I） Net profit|||||||||
||||||||.62|.62|
|||-||||||-|
|（II）Other misc.income||11,309,349||||||11,309,349|
|||.00||||||.00|
|||-|||||||
||||||||31,582,639|20,273,290|
|Subtotal of (I) and (II)||11,309,349|||||||
||||||||.62|.62|
|||.00|||||||
|(III) Investment or decreasing of|||||||||
|capital by owners|||||||||
|1. Capital inputted by owners|||||||||
|2．Amount of shares paid and|||||||||

|||||||
|-|-|-|-|-|-|
|accounted as owners’ equity||||||
|3. Other||||||
|（IV）Profit allotment||||||
|1.Providing of surplus reserves||||||
|2.Providing of common risk||||||
|provisions||||||
|3．Allotment to the owners (or||||||
|shareholders)||||||
|4．Other||||||
|(V) Internal transferring of||||||
|owners’ equity||||||
|1. Capitalizing of capital reserves||||||
|(or to capital shares)||||||
|2. Capitalizing of surplus||||||
|reserves (or to capital shares)||||||
|3．Making up losses by surplus||||||
|reserves.||||||
|4. Other||||||
|(VI) Special reserves||||||
|1. Provided this year||||||
|2．Used this term||||||
|（VII）Other||||||
|IV. Balance at the end of this|506,521,84|1,586,632,|59,801,735|333,421,47|2,486,377,901.85|
|term|9.00|838.63|.10|9.12||

 Amount in last year
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount in last year||||||||
||||Less:|Specializ||Common||Total of|
|Items|Share|Capital|||Surplus||Attributa||
||||Shares in|ed||risk||owners’|
||Capital|reserves|||reserves||ble profit||
||||stock|reserve||provision||equity|
||336,521,84|820,330,15|||36,607,659||93,092,159|1,286,551,|
|I.Balance at the end of last year|||||||||
||9.00|5.88|||.49||.05|823.42|
|Add: Change of accounting|||||||||
|policy|||||||||
|Correcting of previous errors|||||||||
|Other|||||||||
|II.Balance at the beginning of|336,521,84|820,330,15|||36,607,659||93,092,159|1,286,551,|

|||||||
|-|-|-|-|-|-|
|current year|9.00|5.88|.49|.05|823.42|
||170,000,00|777,612,03|23,194,075|208,746,68|1,179,552,|
|III.Changed in the current year||||||
||0.00|1.75|.61|0.45|787.81|
|||||231,940,75|231,940,75|
|（I） Net profit||||||
|||||6.06|6.06|
|||-|||-|
|（II）Other misc.income||14,138,969|||14,138,969|
|||.10|||.10|
|||-||||
|||||231,940,75|217,801,78|
|Subtotal of (I) and (II)||14,138,969||||
|||||6.06|6.96|
|||.10||||
|(III) Investment or decreasing of|170,000,00|791,751,00|||961,751,00|
|capital by owners|0.00|0.85|||0.85|
||170,000,00|791,751,00|||961,751,00|
|1. Capital inputted by owners||||||
||0.00|0.85|||0.85|
|2．Amount of shares paid and||||||
|accounted as owners’ equity||||||
|3. Other||||||
|||||-||
||||23,194,075|||
|（IV）Profit allotment||||23,194,075||
||||.61|||
|||||.61||
|||||-||
||||23,194,075|||
|1.Providing of surplus reserves||||23,194,075||
||||.61|||
|||||.61||
|2.Providing of common risk||||||
|provisions||||||
|3．Allotment to the owners (or||||||
|shareholders)||||||
|4．Other||||||
|(V) Internal transferring of||||||
|owners’ equity||||||
|1. Capitalizing of capital||||||
|reserves (or to capital shares)||||||
|2. Capitalizing of surplus||||||
|reserves (or to capital shares)||||||
|3．Making up losses by surplus||||||
|reserves.||||||
|4. Other||||||

|||||||
|-|-|-|-|-|-|
|(VI) Special reserves||||||
|1. Provided this year||||||
|2．Used this term||||||
|（VII）Other||||||
|IV. Balance at the end of this|506,521,84|1,597,942,|59,801,735|301,838,83|2,466,104,|
|term|9.00|187.63|.10|9.50|611.23|

 Legal representative：Wang Bin
Person-in-charge of the accountingwork：Zhu Jun
Person-in -charge of the accountingorgan：Jiang Xiaojun
III.Basic Information of the Company
1. Enterprise registration address, organization mode and headquarter address.
The company was previously the Shenzhen Textile Industry Company, on April 13, 1994, approved by the Letter(1994)No.15 issued by Shenzhen Municipal People's Government, the Company was restructured and named as Shenzhen Municipal Textile (Group) Co., Ltd. In the same year, approved by the (1994) No.19 file of Shenzhenshi, the shares of the company were listed in Shenzhen Stock Exchange. The Company has got the corporate business certification of Shensizi No. 440301105031014, Registration address and headquarter address are 6/F,Shenfang Building, Huaqiang Road. North, Futian District, Shenzhen.
2.Enterprise’s business nature and major business operation.
At present, the Company is mainly engaged in high-tech industry focusing onR&D, production and marketing of polarizers for liquid crystal display, management of properties in bustling business districts of Shenzhen and reserved high-class textile and garment business.
3. Names of parent company and group parent company.
Thecompany’s parent company is Shenzhen Investment Holdings Co.,Ltd.
4. The reporting person of the approval of financial statements and the reporting date of the approval of financial statements.
The reporting person of the approval of financial statements of the company: Board of Directors of the Company The reporting date of the approval of financial statements of the Company:August 19, 2014
IV.Principal accounting policies, accounting estimates and early errors
1.Basis for the preparation of financial statements
On the basis of continuous operation, in accordance with actual transactions and events, the company carried out confirmation and measurement in accordance with "Accounting Standards for Business Enterprises - Basic
Standards" issued by the Ministry of Finance and other various accounting standards, on the basis of it, the
Company prepared the financial statements.
2. Statement on complying with corporate accounting standards
Based on the requirement that the financial reports edited according to above-mentioned editing conditions is accordance with enterprise accounting standards, the company reflected its financial condition on December 31, 2013 truly and completely and business result in 2013. and cash flow information, etc.
3. Fiscal year
A calendar year, that is, from January 1 to December 31 is a fiscal year.
4. Accounting standard money
Accounting standard money is RMB. Referring to notes to unless separately stated. Currency:RMB
5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprise merger under samecontrol：
For the enterprise merger under same control, the assets and liabilities obtained by the merging party from enterprise merger was measured according to book value of the merged party on the merger date. The capital reserve was adjusted according to the deference between the book value of net assets obtained by the merging party and the book value of merger price paid (or the total book value of shares issued); if capital surplus was not big for the offset, the retained earnings should be adjusted. Amalgamating parties reckon every direct relate expenses produced in enterprise consolidation including auditing expense, valuation expense and legal service expense paid on enterprise consolidation to current profit and loss when those expenses produced. On parent subsidiary relationship formed via enterprise consolidation , parent company is responsible of editing
amalgamation property balance sheet, amalgamation profit statement and amalgamation cash flow meter of amalgamation date. In amalgamation property balance sheet, every asset and liability of amalgamated parties is measured according to its book value. For the accounting policy adopted by the amalgamated parties is not accordance with amalgamating party, and it is adjusted according to criterions, the book value after adjusted is measured. The amalgamating profit chart contains income, expenses and profit happened from the beginning of amalgamation and amalgamating date. The realized net profit before amalgamation from the amalgamated party shall be reflected on the amalgamating profit chart. Amalgamation cash flow meter contains the cash flow of every party in amalgation from the beginning of amalgamation and amalgamating date.
（2）Enterprise merger under differentcontrol：
For the enterprise merger under same control, the merger cost was the assets for the obtaining the control right of the party being purchased on the purchase date, the liabilities happened or undertook and the fair value of the equity securities. For the enterprise merger realized through a number of transactions, the merger cost was the sum of all individual transaction. All the direct costs and related costs for the enterprise merger were included in the cost of enterprise merger. The purchase date referred to date that the company had the control right of the party being purchased. The difference between merger cost over the fair value of identifiable net value obtained from the merger should be confirmed as goodwill. The difference between the identifiable net assets of the party being purchased obtained in the merger and the amount of identifiable net assets of the party being purch ased obtained in the merger should be included in the loss and gain of the current period. On parent subsidiary
relationship formed via enterprise consolidation , parent company is responsible of editing amalgamation property balance sheet on amalgamation date; the acquired every identified asset, liability acquired from enterprise consolidation is listed via fair value.
6. The compiling method of combined financial statement
（1）The compiling method of combined financial statement
（1）Combined financial statements has financial statements and other related material of every subsidiary company within combined financial statements as combination basis, adjust long-term equity investment of subsidiary company according to equity method, compensate investment, trade activities of the company and every subsidiary company within the combined financial statements, calculate few shareholder profit and loss and few shareholder rights and interests. Then compile the financial statements after those activities.
（2）In compiling, if the accounting policy of any subsidiary company within the combination scope is not accordance with it of the company, adjust it according to the accounting policy of the company, then combine.（3）On the subsidiary company acquired from enterprise consolidation under same controlling, treat amalgamation produced at the beginning, bring its assets, liabilities, business result and cash flow into financial statements at the beginning of the amalgamation.
（4）On the enterprise consolidation under same controlling, the net income and loss of the amalgamated parties is reckoned into nonrecurring profit and loss before amalgamation and separately listed in submitting financial statement.
（5）Recombination belongs to enterprise non-combination issue under same company controller, when the combined parties combine the assets amount of last account year end, business income of last accounting year or total profit of last accounting year, if it reaches or excesses20% of relative item of the company, compile income statements at the beginning of the combination period.
（6）For the subsidiary company acquired from enterprise consolidation under non-same controlling, in compiling combination statements, adjust individual financial statements based on fair value of identified net assets at the purchasing date.
7. Recognition Standard of Cash& Cash Equivalents
Cash means the cash on hand and deposit for payment at any moment.
Cash equivalent refers to the investment with few value alteration risks that the company holds the cash with the characters of short term (generally means 3 months from the purchasing date), strong fluidity, easy transferring to known amount.
8.Foreign Currency Transaction
（1）Foreign currency operations
The foreign currency operation is translated into recording currency according to approximate exchange rate at sight of business happening date. The approximate exchange rate at sight refers to the exchange rate at the beginning of the business happening month.
On balance sheet date, dispose foreign currency monetary item and foreign currency non-monetary item according to the following regulations:
A.Foreign currency monetary item is translated adopting exchange rate at sight of balance sheet date. The balance of exchange produced from the difference between exchange rate at sight at balance sheet date and initial confirmation or exchange rate at sight at former balance sheet date shall be reckoned into profit and loss at current period.
B. Foreign currency non-monetary item measured with historic cost, adopt exchange rate at sight on business happening date and not to change recording currency (amount).
C. Foreign currency non-monetary item measured by fair value adopts exchange rate at sight of fair value confirmation date. The difference between recording currency after translating and the original recording currency
is disposed as fair value alteration and reckoned into profit and loss at current period.
（2） Conversion for foreign financial statement
The subsidiaries of the company whose standard currency was foreign currency, all asset and liability items should be converted into the standard money of parent company according to the spot rate on the balance sheet date, and all theowners’ equity items, accept for "retained profits", should be converted into the standard money of parent company according to the spot rate on the balance sheet date. The income and cost items in the profit statement should be converted into the standard money of parent company according to the spot rate during the period of consolidating financial statements. The conversion differences due to different exchange rate, should be reflected by opening the "foreign currency conversion difference statements" in RMB. And open the "foreign currency statements conversion differences" in cash flow statement in RMB.
9. Financial instruments
(1) Classification of financial instruments:
Financial assets can be divided into: the financial assets which measured by fair value and its changes are included in the current loss and gain (including transactional financial assets and the financial assets which measured by fair value and its changes are included in the current loss and gain), the expired investments, loans and receivables held, and financial assets to be sold, the four categories;
(2) Measurement of financial instruments
A. The initial recognition financial assets are accounted in accordance with fair values. For the financial assets which measured by fair value and its changes are included in the current loss and gain, the relevant transactional costs should be included in the current loss and gain; for other financial assets, the relevant transactional costs should be included in the initial recognition amount.
B. The Company makes follow-up measurement on financial assets according to fair value, the transactional cost to deal with the financial assets which may happen in the future will not be deducted. But, except the following situations:
(a). The expired investments and loans held, should be measured according to amortized costs by the actual interest method. Accounts receivable, in accordance with the purchase contract or agreement price receivable amount as initial confirmation, when recovery or disposal the account receivable, the price difference between the carrying amount of the receivable included in the current profits and losses
(b) The equity tool investments which do not have quotation in market and their fair value can not be reliably measured, and the derivative financial assets which are related to the equity tool and are to be delivered to the equity tool to account, should be measured according to costs.
（3）Recognition basis and measurement for transferred financial assets
The company will transfer almost all risk and earnings into the transferred parties on the ownership of financial assets or when the controlling on financial assets is given up, it will expire confirming the financial assets.
（4）Recognition basis of financial assets and financial liabilities
A, The financial assets which exist in the market, the quotation in the market will be determined as fair value; B, The financial assets which do not exist in the market, adopt valuation techniques to determine the fair value. The results by the valuation techniques show the transaction prices which may be used in fair transactions on the valuation day.
（5）Providing of impairment provision on financial assets (exclude receivable accounts)
On the balance sheet date, carry out inspection on the book value of financial assets which are not included in the financial assets measured according to fair value and its changes are include in the current loss and gain. If there are objective evidence showing that the financial assets have impairment, the provision for impairment should be accounted. The objective evidences which show the impairment of financial assets include the following items: A. The issuing party or the debtor had serious financial difficulties;
B. The debtor violated the terms in the contract, such as the payment of interest or principal had default or delayed; C. For the consideration in economy and law, the Company made concessions to the debtor in difficulties; D. The debtor was likely to collapse or carry out other financial restructuring;
E. The issuing party had major financial difficulties, and the financial assets can not be traded in market;
F. The debtor had major adverse changes in technology, market, economic and legal environment, and the Company was may not be able to recover the investment costs;
G. The fair values of the equity tool investments had serious and non-temporary decline;
H. Other objective evidences which show the impairment of financial asset
Measurement of impairment losses of financialassets：
A.The financial assets measured according to fair value and its changes are include in the current loss and gain require no test of impairment;
B.The measurement of impairment loss of expired investments: Account provision for impairment according to the difference of the value of future cash flow lower than the book value;
Judgment of impairment of available-for-sale financial assets: if there is a significant decline in the fair value of available-for-sale financial assets, more than30%of its cost of ownership, expect this downward trend is temporary (duration more than 12 months), depends on the estimated balance of the book value and the present value of future cash flows to decide the provision for impairment.
10. Recognition standard and providing basis of bad debt provision on receivable accounts
If the amount of a single item is big, impairment test shall be conducted separately. Impairment loss shall be recognized and provision for bad debts shall be made according to the difference between its present value of its future cash flow and its book value. If the amount of single item is not big and conclusive evidences show apparent difference in respect of recoverability of accounts receivable, test shall be conducted and provision for bad debts shall be made separately. For the accounts receivable proved to be not impaired after separate test, aging analysis shall be adopted and impairment loss shall be recognized according to the age of accounts receivable and specified proportion.
（1）Bad debt provision on receivable accounts with major amount individually
|||
|-|-|
||The Client Identifies single amount of accounts receivable|
||that is not less than RMB 1 million as account receivable that|
||are individually significant in amount. The Client Identifies|
|Criteria and norm of individual significance||
||single amount of accounts receivable that is not less than|
||RMB 0.5 million as account receivable that are individually|
||significant in amount.|
||If it is objectively evidential that a receivable of individual|
|Measurement of impairment allowances for receivables of individual|significance has impaired, the impairment loss shall be|
|significance|recognized based on the difference of the book values higher|
||than the present value of future cash flows.|

（2）Accounts receivable belong to recognition of impairment allowances bygroup：
||||
|-|-|-|
||Method for recognition of||
|Name|impairment allowances by|Basis of determination of group|
||group||
||The age analysis method：||
|||The classified according shall be recognized based on the|
|Account’s age group|||
|||accounts’ age|

In Group, the adopting aging analysis method
√Applicable□Not applicable
||||
|-|-|-|
|Age|% for accounts receivable|% for other receivables|
|Within 1 year（incl: 1 year）|5.00%|5.00%|
|1－2 years|10.00%|10.00%|
|2－3 years|30.00%|30.00%|
|Over 3 years|50.00%|50.00%|

 Accounts on percentage basis ingroup：
□ applicable√not applicable
Accounts on other basis ingroup：
□ applicable√not applicable
（3）Accounts receivable belong to individual insignificant but individually assessed forimpairment：
|||
|-|-|
|The reason for individually assessed for||
||There is evidence that differences in the receivable are apparently .|
|impairment||
|Method for recognition of impairment|A receivable which is individually insignificant but the credit risk is high, should be|

|||
|-|-|
|allowances|individual it assessed for impairment, the impairment loss shall be recognized based|
||on the difference of the book values higher than the present value of future cash|
||flows.|

11.Inventory
（1）Inventory classification
Inventory can be divided into five categories: raw materials, materials commissioned to process, products, finished products, working materials;
（2）Pricing method of stock delivered
Stock delivered is measured according to weighted average method.
（3）Confirmation basis of stock net realizable value and withdrawal method of inventory falling price reserves. Inventory net realizable value is the integrant value that estimated sales price deducting estimated work completing cost and integrant estimated cost according to the normal business process.
Withdrawal method of inventory falling price reserves: with the basis that the company making complete inventory taking at the end of medium term and end of year, on the inventory that suffered loss, entire or partial old and outdated or sale price lower than sales price, according to inventory cost and net realizable value (lower is preferred), the company measure it and reckoned it according to the difference of net realizable value of single inventory item upon similar inventory items lower than inventory cost as withdrawal inventory falling price reserves to profit and loss at current period. In confirming net realizable value, the infection upon future item shall be considered beside the price and cost fluctuation of the inventory at balance sheet date.
（4）Inventory system
Inventory system adopts the perpetual inventory method.
（5）Amortization method of consumption goods with low value and wrap page
Consumption goods with low value: Consumption goods with low value adopt one time amortization method when used. Packing:
Wrap page: Wrap page adopts one time amortization when used.
12．Long-term equity investment
（1）Investment cost confirmation
A. The long-term equity investment formed via enterprise consolidation confirm its initial investment cost according to the following criterions:
a. On enterprise consolidation under same controlling, amalgamating parties, managing payment cash, transferring non-cash assets or undertaking liability style as amalgamation consideration, treat the acquired equity book value share from amalgamated parties on amalgamation date as the initial investment cost of long-term
equity investment. The difference between long-term equity investment initial investment cost and the paid cash
transferred non-cash assets and undertook liability book value is adjusted to be capital reserves; if capital reserves
are not sufficient to be deducted, which shall be adjusted to be retained earnings.
When the amalgamating parties via issuing equity securities as amalgamation consideration, treat the acquired equity book value share from amalgamated parties on amalgamation date as the initial investment cost of long-term equity investment. Treat the book value amount of the issued shares as capital stock, the difference between the initial investment cost of long-term equity investment and book value amount of stock issued as capital stock is adjusted to be capital reserves; if capital reserves is not sufficient to be deducted, which shall be adjusted to be retained earnings.
b. On enterprise consolidation under different controlling, the confirmed amalgamation cost according to the following criterions is as initial investment cost of long-term equity investment:
1/ On enterprise consolidation realized from one time exchanging deal, the amalgamation cost is the paid assets, reliabilities happened or undertook, and the fair value of issued equity securities from purchasing parties on purchasing date for the purpose of acquiring the controlling right upon the purchased parties.
2/ On the enterprise amalgation realized step by step by several times exchanging deal, the amalgamation cost is the summation of every deal cost.
3/ Every direct associated expense produced from purchasing parties for enterprise consolidation is reckoned to enterprise consolidation cost.
4/ If the future issues that possibly affect amalgamation cost in amalgamation contract or agreement is promised, on purchasing date, if the future issues that possibly happen and affect amalgamation cost can be reliably measured, purchasing parties shall reckon it to be amalgamation cost.
B、Except the long-term equity investment formed via enterprise consolidation , the long-term equity investment acquired through other methods is confirmed to be its initial investment cost according to the following regulations:
a. The long-term equity investment acquired via cash payment is treated as initial investment cost according actually paid purchase price. The initial investment cost contains the expense, tax and other necessary payout that directly associated to long-term equity investment.
B．The acquired long-term equity investment via issuing equity securities is as initial investment cost according to the fair value of equity securities.
c. The long-term equity investment input by investor is as initial investment cost according to the value stipulated in investment contract or agreement, while the unfair value stipulated in contract or agreement is excluded.
d.The long-term equity investment acquired via non-monetary assets exchange, e. g. if non-monetary assets exchange has commercial nature, then the long-term equity investment took in exchange is as initial investment cost according to fair value and payable relative taxation; if non-monetary assets exchange has no commercial nature, then the long-term equity investment in took in exchange has the book value of out took asset in exchange and payable relative taxation as initial investment cost.
e. On the acquired long-term equity investment via liability recombination, its initial investment cost is confirmed by fair value and payable relative taxation.
（2）Rear measuring and profit and loss confirmation method
A. According to infection degree of investing enterprise against the invested unit , enlivening market or not, fair value reliably received or not, separately adopts cost method or equity method to measure.
B. The confirmation of investment profit and loss
Long-term equity investment reckoned via equity method, shall be adjusted in considering the infection of the following factors under the basis of book net profit of invested unit in confirming the net profit or net deficit enjoyed or undertook by invested unit.
a. If the accounting policy adopted by invested unit is not accordance with investing unit, adjust according to accounting policy of investing enterprise and financial reports of invested unit to confirm the profit and loss of invested unit under the basis.
b. With the fair value of fixed assets, intangible assets of invested unit as basis, the withdrawn depreciation amount or amortization amount and assets depreciation reserves produced infection upon the invested unit net profit.
c. The unrealized profit and loss produced from the investing unit and its affiliated enterprise and joint enterprise shall be compensated. Namely the unrealized profit and loss between investing enterprise and affiliated enterprise and joint enterprise is calculated and attributes to investing enterprise according to No.8 share ratio, which will be compensated and investment benefit and loss shall be confirmed under the basis. The trade loss between investing enterprise and invested unit, attributing to assets depreciation loss, is completely confirmed.
（3） Confirm the basis that has common control and major infection upon invested unit.
A. Common controlling basis:
a. Any join enterprise can not individually control production and operating activities of joint enterprise; b. The decision making related to basic business operations of joint enterprise shall be agreed by both parties; c. Every joint-venture enterprises nominate one joint enterprise according to contract or protocol to manage daily activities of joint-venture enterprise; it must implement management right within the wholly agreed financial and business policy scope.
B. Major infection basis:
a. Appoint represent in the board of invested unit or similar capability mechanism, enjoy relative actual participation decision making right, investing enterprise can participate in the constitution of business policy of the invested unit and realize implementing major infection upon the invested unit.
b. Participate in the policy making of the invested unit including the making of dividend allotment policy. Under the circumstance, the represent can bring forward suggestion or idea for its own interest and bring large infection upon the invested unit.
c. Realize important trade with the invested unit. Relative trade affects production operations decision- making of invested unit at certain degree.
d. Appoint administrative person to the invested unit. Under the condition, appoint administrative person to the invested unit, the person has right and is responsible for the financial and business activities of the invested unit, so as to implement import infection on the invested unit.
e. Offer key technical documents to the invested unit. Production operations of the invested unit relies upon the technique or technical document of the investing enterprise, which indicate investing enterprise has major infection upon the invested unit.
To confirm investing unit has major infection upon the invested unit, one side, consider the voting power share that investing unit directly or indirectly hold from the invested unit, one other side, consider the infection produced by enterprise and other parties holding executable potential voting power presumably transferring into stock right of invested unit, such as the issued current transferable subscription warrant, stock option and transferable corporate bond, etc. If these transferred into stock right of invested unit, which can increase the voting power rate of investing enterprise or decrease the voting power rate of other investors in invested unit, so as to make investing enterprise joining in the financial and business policy-making of the invested unit, and consider investing enterprise have large infection upon the invested unit.
（4）Depreciation testing method and depreciation reserve withdrawal method.
On balance sheet date, inspect long-term equity investment, judge long term equity investment has the depreciation evidence or not. If the depreciation evidence of the operation state of invested unit appears, estimate its recoverable fund. The measured value of recoverable fund indicates the recoverable fund of long term equity investment is lower than its book value; deduct the book value of long term equity investment into recoverable fund. The deducted fund is confirmed to be the loss of assets depreciation and reckoned into benefit and loss at current period, meanwhile withdrawal relative long term investment depreciation deserve. Once the long term investment depreciation loss is confirmed, which will not be transferred in the later accounting period.
13. Investment property
(1). Scope of investment real estate: refers to the real estate for rent or for capital appreciation or for both of them, including the rented land use rights, the land use rights held and to transferred, and the leased building;
(2). Initial measurement of investment real estate: conduct initial measurement in accordance with the cost to obtain it;
(3)Follow-up measurement of investment real estate: the Company conducts follow-up measurement on the investment real estate by cost model; the follow-up expenditure relating to investment real estate, if the related profit is likely to flow into the company and can be measured, then it should be included in the cost of the investment real estate, other follow-up expenditures should be recognized as the current loss and gain;
(4) The classification, depreciation and amortization policies of real estate investments and the depreciation and amortization policies of fixed assets and intangible assets should be coherent.
Provision for impairment of investment real estate should be treated according for asset impairment.
14．Fixed assets
（1）Confirmation conditions of fixed assets
The tangible assets held for producing goods, providing services, rent or operation, and the service time is longer than one fiscal year.
（2）Cognizance evidence and pricing method of financial leasing fixed assets
If all risk and reward associated to certain hired fixed asset actually have transferred, the company confirms it to be financial leasing. Financial leased fixed assets should take the lower one of fair value of leased assets at leasing date and lowest leasing payment, added with the initial direct expenses directly belonging to leasing item, will be book value of leased assets. Taking the lowest leasing amount as the book value of long term account payable, its difference will be unconfirmed financial charges. The unconfirmed financial charges will adopt actual interest rate method to allocate within leasing period. The leased fixed assets ensure depreciation
（3）Fixed assets depreciation method
|||||
|-|-|-|-|
||Depreciable life|||
|Classification of fixed asset||Residual rate（%）|Depreciation rate（%）|
||（Year）|||
|House and Building|35-40 years|4.00%|2.74%-2.4%|
|Machinery and equipment|10-14 years|4.00%|9.60%-6.86%|
|Electronic Equipment|8 years|4.00%|12.00%|

|||||
|-|-|-|-|
|Transportation equipment|8 years|4.00%|12.00%|
|Decoration of Fixed assets|10 years||10.00%|
|Other Equipment|8 years|4.00%|12.00%|

（4）Depreciation measuring method and depreciation reserves withdrawn method of fixed assets
Judge fixed assets appearing the depreciation evidence or not at balance sheet date. If assets market value
continuously decreases, or technology is old, damaged or long-term left un-used, draw back amount. The
measured result of recoverable amount indicates the recoverable amount of fixed assets is lower than its book value; deduct the book value of fixed assets into recoverable amount. The deducted amount is confirmed to be assets depreciation loss and is reckoned into benefit and loss at current period; meanwhile withdraw relative fixed assets depreciation reserve. Once fixed assets depreciation loss is confirmed, which will not be transferred at the later accounting period.
15. Projects under construction
（1）Categories of projects under construction
The projects under construction include pre-construction preparations, the building projects under construction, installation projects, technical transformation projects and overhaul works, etc.
（2）Standard and timing for transferring of projects under construction to fixed assets
The projects under construction should be accounted according to actual expenditures by items, and should be converted to fixed assets when the projects reached the predicted use state. The costs for borrowing relating to projects under construction (including loan interests, excess discount amortization, exchange gains and losses, etc.), which should be included in the cost before the related projects reach the predicted use state, and included in the current financial cost after the related projects reach the predicted use state;
(3)Impairment text and providing of impairment provisions on projects under construction
Make complete inspection on construction in progress on the date of balance sheet, judge fixed assets occurring possible depreciation evidence or not. If yes: (1) project in progress without construction for long time is estimated not to start working again in future 3 years, (2) project in progress has evidence that its character and technology have fallen behind and the economic benefit brought has great uncertainty and other depreciation evidence, which shall be estimated its recoverable amount. The result of recoverable amount shows the recoverable amount of project in progress is loss than its book value, write-down its book value of project in progress into recoverable amount. The written down amount is confirmed to be assets depreciation loss and is reckoned into current period profit and loss, meanwhile withdraw relative depreciation reserve of project in progress. Once depreciation loss of project in progress is confirmed, which will not be transferred.
16.Borrowing cost
（1）Principle of the recognition of capitalized borrowing costs
The borrowing expenses, if they comply with the capitalization conditions, should be capitalized and included in
the cost of relevant assets; other borrowing expenses, should be determined according to the amount occurred and
be included in the current loss and gain.
（2）Capitalizing period of borrowing expenses
If the borrowing expenses meet the following conditions at the same time, they should be capitalized: A. Capital expenditures have already occurred, capital expenditures include the expenditures paid by cash, transferring non-cash assets or by bearing interest-debt;
B. The borrowing costs have occurred;
C. The construction to make the asset to reach the intended use state or sale state, or the production activities have already begun.
（3）Temporarily suspension of capitalizing period
When the assets which meet the capitalization condition reach the intended use or sale state, the capitalization of the borrowing expenses should be stopped. The borrowing expenses for the assets which meet the capitalization conditions and reach the intended use or sale state, the expenses should be confirmed according to the amount occurred, and be included in the current loss and gain.
17. Biological assets
（1）Simultaneously, biological assets that meets the following conditions will be confirmed:
A. For the past trade or issues, the company possesses or controls biological assets;
B. The economic interest associated with the biological assets may flow into the company;
C. The biological assets cost can be reliably measured.
（2）Biological assets is divided into consumable biological assets, manufacturing biological assets and public welfare biological assets.
（3）Biological assets is initially measured according to cost.
（4）On the date of balance sheet, check consumable biological assets, if there are specific evidences showing the reasons like natural disasters, plant diseases and insect pests, animal epidemic situation attack or market requirements, make the net realizable value of consumable biological assets or recoverable amount of manufacturing biological assets are lower than their book value, according to the difference between net realizable value or recoverable amount and their book value, withdraw biological assets depreciation preparation or value decreasing preparation and reckon it to current profit and loss. If the contributing factor of consumable biological assets value decreasing has already disappeared, the deducted amount will be resumed and is transferred within the original withdrawn price decreasing standard and transferred amount is reckoned into current profit and loss. 18. .Intangible assets
（1）Pricing of intangible assets
(1)Intangible assets refer to recognizable non-monetary assets without physical form that are owned or controlled by an enterprise, including proprietary technology, land use right, etc.
(2)Intangible assets shall be accounted for at historical cost at the time of acquisition.
（3）For the intangible assets with definite service life, since the availability of the intangible assets, they should be amortized by straight-line method within the service life, and included in the current loss and gain.The intangible assets with no definite service life will not be amortized; the company should conduct review on the service life and amortization methods of the intangible assets at the end of the year, if the service life and
amortization methods are inconsistent with what estimated previously, then the amortization period and
amortization methods should be changed.
（2）Provision for impairment of investment assets
Inspect the ability of every intangible assets bring to future economic benefit to the company, when any one of the following exists: (1) certain intangible assets has been replaced by other new technology, which make its ability bringing benefit to enterprise seriously affected; (2) the market price of certain intangible assets greatly fall at the current period and will not resume within the left amortization period; (3) certain intangible assets has overpasses legal protection period, but it still has the depreciation evidence with partial usage value, then valuate its recoverable amount. The measuring result of recoverable amount shows if the recoverable amount is less than its book value, then write-down its book value into its recoverable amount, the written down amount is confirmed to be assets depreciation loss and reckoned into to current profit and loss, meanwhile withdraw corresponding intangible assets depreciation reserve; (4) For other conditions that fully prove certain intangible assets
substantially produced depreciation reserve, withdraw intangible assets depreciation reserve according to the difference between recoverable amount and book value. Once intangible assets depreciation loss is confirmed, which will not be written back in the later accounting period.
19.Long-term amortization expenses
（1）Long-term prepaid expenses refer to that enterprises have already spent, and amortization periods of all expenses are more than one year (excluding 1 year), they should be amortized in the regulated years.
（2）Long-term deferred expense is valuated according to actual cost, the installation cost should be equally amortized during two major overhauls or the contract period (depends on which is shorter), other long-term deferred expenses should be equally amortized according to the benefit period of the project. For the long-term deferred expenses which can not bring predicted profit in the future accounting period, all the unamortized value should be converted to the current loss and gain.
20.Predicted liabilities
（1）Recognition of Predicted liabilities
The liabilities which are relevant to contingent events and meet the following conditions at the same time, the Company recognizes it as predicted liabilities: the liability is the current obligation the company undertakes; the performance of the liability may result in the outflow of economic interests; the amount of the liability can be reliably measured;
（2）Accounting of Predicted liabilities
If the predicted liability to be fully or partly paid by the company and be compensated by the third party, the compensation amount can be recognized as assets individually only when it can be basically recovered, at the
same time, the compensation on the asset should not be more than the corresponding book amount of the
predicted liability.
21. Revenues
（1）Recognition time for sales of goods
Revenue is recognized when Purchase has transferred to the buyer the significant risks and rewards of ownershipof the goods, retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, will receive the economic benefits associated with the transaction, and can reliably measure the relevant amount of revenue and costs.
(2)Incomes from transferring asset use right
Incomes from transferring asset use right include interest income and income from use payment;
The amount of interest income, is determined in accordance with the time and actual interest rate; the income from use payment is determined according to the time and method of relevant contract and agreement.
（3）Provide labor income
In the same fiscal year and the service has been completed, the income should be confirmed upon the completion of the service; If the starting and completion of the service belong to different fiscal year, then when the service can be reliably measured, the service income should be confirmed at the period end according to the percentage of the service not completed.
22. Governmental subsidy
（1）Categories
It contains financial appropriations, financial discount, taxation return and transfer non-monitory assets free of charge. Among the earmarks such as investment subsidies by government, which was processed as capital reserve according to the provisions of the relevant national documents belong to the nature of capital investment rather than government subsidies.
（2）Accounting Policy
Government grants can meet the requirements of government grants and be confirmed when received. If government subsidy is monetary asset, the amount should base on received or receivable amount. Government grants for non-monetary assets should be measured at fair value. The government grants long-term assets received by the company through construction or any other ways belong to government grants related to assets. The government grants received except for the assets related government grants was government grants related to income. The assets related government grant was recognized as deferred income, and would be equally distributed in the life of the related asset, recognized in profit or loss in current period. The government grants related to income, if used to compensate the expense or losses of the company after the period, it would be recognized as deferred income and recognized in profit or loss in that period; if used to compensate the expenses or losses incurred of the company, recognized in profit or loss in current period.
23. Deferred income tax assets/Deferred income tax liability
（1）Confirmation of deferred income tax assets
A.Limited by the company possibly acquired taxability amount for deducting temporary difference, confirm the deductible difference deferred income tax assets produced from temporary difference. But the deferred income tax assets produced from the initial confirmation of assets or liability in trade with the following characters are not confirmed:
a. The trade is not enterprise consolidation ;
b. When trade happens, which will neither affect accounting benefit nor affect taxability amount of income (or deduct loss).
B. The company, on the deductible temporary difference associated to investment of subsidiary company, affiliated company and partnership business simultaneously meet the following conditions, confirms relative deferred income tax assets:
a. Temporary difference most likely is transferred in the foresight future.
b. Taxability amount of income that most likely used to deduct temporary difference in future.
C. The company confirms relative deferred income tax assets for transferable later annual deductible loss and taxation decreasing with future taxability amount of income for deducting deductible loss and taxation decreasing as limitation.
(2) The confirmation of deferred income tax liability
Besides the deferred income tax liability produced under the following conditions, the company confirms all deferred income tax liability produced by all taxability temporary difference:
A. The initial confirmation of business Goodwill;
B. Simultaneously meeting the initial confirmation of assets or liability produced in trade with the characters of following characters:
a. The trade is not enterprise consolidation;
b. Trade occurrence affects neither accounting benefit nor taxability amount of income (or the deductible loss).
C. When the company has relative taxability temporary difference with its subsidiary company, affiliated company and partnership business, and simultaneously meets the following conditions:
a. Investment enterprise can control the transferring time of temporary difference;
b. Temporary difference may possibly not transfer in the foreseeable future.
rage raw material and raw material purchasing order appointed to be headged object that make company facing fair value alteration risk.
24.Hedging instruments
(1) The hedged item of the company refers to storage raw material and raw material purchasing order appointed to be headed object that make company facing fair value alteration risk.
(2) Hedging instruments of the company refers to the transferring instrument that is appointed and its fair value alteration can eliminate the fair value alteration of hedged items-----forward contract.
(3) If fair value hedging simultaneously meet the following conditions, the company only can use hedging
accounting method to dispose:
A. When hedging begins, the company has official appointment on hedging relation (namely the relation between hedging instrument and hedging items), and prepares the official written file about hedging period risk, risk management target and hedging policy.
B. The estimated highness of the hedging period is effective, and meets the risk management policy confirmed originally by the company for the hedging relation.
C. Hedging effectiveness can be reliably measured.
D. The company continuously makes evaluation on the effectiveness of hedging period and confirms that the hedging period is highly effective during the accounting period appointed in hedging relations.
（4）For fair value hedging that meeting above-mentioned conditions, implement accounting disposal according to the following regulations:
A. The benefit or loss produced from alteration of fair value hedging is reckoned into benefit and loss at current period.
B. The benefit or loss formed via risk in hedged period on hedged item is reckoned into benefit and loss at current period; meanwhile adjust the book value of the hedged item.
C. Any one of the following conditions is satisfied in hedged period, the company will expire using faire value hedging account:
a. Hedging instruments have expired, been sold, contract expire or come into practice.
b. The hedging will not satisfy the conditions that using hedging
c. Enterprise cancels the appointment of hedging relation.
25.Change of main accounting policies and estimations
Is there any change in accounting policies in the report period
□ Yes√ No
Not applicable
（1）Change of accounting policies
Is there any change in accounting policies in the report period
□ Yes√ No
（2）Change of accounting estimations
Is there any change in accounting estimations in the report period
□ Yes√ No
26. Correction of accounting errors in previous period
Is there any accounting errors in previous period done in the report term
□ Yes√ No
Not applicable
（1）Retrospective restatement
Is there any retrospective restatement on the accounting error with previous periods done in the report term□ Yes√ No
（2）Future adoption method
Is there any future adoption method apply able to accounting errors with previous period, found in the report period.
□ Yes√ No
V.Taxes of the Company
1. Main taxes categories and tax rate
||||
|-|-|-|
|Taxes|Tax references|Applicable tax rates|
|VAT|Incomes from product sales|17.00%|
||Providing labor services, real estate||
|Business tax.||5.00%|
||sales, the transfer of intangible assets||
|City construction tax|VAT, sales tax, turnover tax, etc|7.00%|
|Business income tax|Taxable income|25.00%、15.00%|

2. Tax preference and approval file
(1)Shenzhen Shengbo Optoelectronic Technology Co., Ltd., the subsidiary company of our company, has been qualified as national high-tech enterprise since 2013 ,High-tech and enterprise certificate No.: GF201344200044 ,The certificate is valid for three years, The enterprise income tax rate of this year is15%. (2).In accordance with relevant provisions of the Notice of Ministry of Finance, General Administration of Custo ms and State Taxation Administration Regarding Tax Preference Policies for Further Supporting the Development of New-
type Display Device Industry (Cai Guan Shui (2012) No. 16), and the Notice of Printing and Issuing the Scope of Imported Materials of Enterprises Manufacturing Colorful Light Filtering Coating and Polarizer Sheets and the Li st of the First Group of Enterprises Enjoying Preferential Policies (Cai Guan Shui (2012) No. 53), Shenzhen Shen gbo Optoelectronic Technology Co., Ltd. manufactured key materials and parts for the upstream industry of new- type display devices including colorful light filter coating and polarizer sheet that comply with the planning for in dependent development of domestic industries may enjoy the preferential policies of exemption from import tariff for the import of raw materials and consumables for the purpose of self use and production that can not be produc ed domestically from June 1, 2012 and December 31, 2015. For the concrete regulations on tax exemption, the Pro visional Regulations on Taxation Policies for Imported Materials of Enterprises Manufacturing New-
type Display Device Panels (Cai Guan Shui (2012) No. 16).
IV. Enterprise consolidation and combined financial statements
1. Subsidiary
（1）Subsidiary obtained through establishment or investment
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||After wrote|
||||||||||||||down current|
||||||||||||||period loss of|
||||||||||||||minority|
||||||||||||||shareholders|
|||||||||||||Amount||
||||||||||||||over equity|
|||||||Actual|Other projects|||||used to write||
|Full||||||||||Whether|||beginning|
|||Registra||||capital|balance essentially|Holding|||Interest of|down lost||
|name of|Subsidia||Busines|Registered|||||Proportion of|consolidation|||share of|
|||tion|||Business scope|amounts|from net|proportion|||minority|included in||
|subsidia|ry type||s|capital|||||voting rights(%)|of|||minority|
|||place||||of the|investment to|(%)|||shareholder|minority||
|ry||||||||||report form|||shareholders in|
|||||||end|subsidiary|||||shareholder||
||||||||||||||the subsidiary|
|||||||||||||interest||
||||||||||||||from the parent|
||||||||||||||company’s|
||||||||||||||share ,Balance|
||||||||||||||of Owner's|
||||||||||||||equity|
||Wholly-|Shenzhe|Domesti|||||||||||
||owned|||||||||||||
|Shenzhe||||||||||||||
||subsidia|n|c||Domestic|||||||||
|n Lisi||||||||||||||
||ry||commer||commerce,|2,360,000||||||||
|Industri||||2,360,000.00||||100.00%|100.00%|Yes||||
||||ce,||materials supply|.00||||||||
|al Co.,||||||||||||||
||||material||and sales|||||||||
|Ltd||||||||||||||
||||s supply|||||||||||
||||and|||||||||||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||sales|||||||
|Shenzhe|Wholly-|Shenzhe|||Accommodation|||||
|n|owned|n||||||||
|Huaqian|subsidia||||, restaurants,|||||
|g Hotel|ry||||business center;|||||
||||Accom|||||||
||||||ticket|||||
||||modatio|||||||
||||||consignment;|||||
||||n,|||||||
|||||10,005,300.0|Property|10,005,30||||
||||restaura||||100.00%|100.00%|Yes|
|||||0|Management|0.00||||
||||nts,|||||||
||||||(required to|||||
||||business|||||||
||||||obtain the|||||
||||center|||||||
||||||relevant|||||
||||||qualification|||||
||||||certificate for|||||
||||||their operations)|||||
|Shenzhe|Wholly-|Shenzhe||||||||
|n|owned|n||||||||
|Shenfan|subsidia|||||||||
|g|ry||Property||The Company|||||
|||||||1,600,000||||
|Property|||manage|1,600,000.00|property||100.00%|100.00%|Yes|
|||||||.00||||
|Manage|||ment||management|||||
|ment||||||||||
|Co.,||||||||||
|Ltd.||||||||||
|Shenzhe|Wholly-|Shenzhe|Producti||Production of|||||
|n|owned|n|on of|25,000,000.0|fully electronic|25,000,00||||
||||||||100.00%|100.00%|Yes|
|Beauty|subsidia||fully|0|jacquard|0.00||||
|Century|ry||electron||knitting whole|||||

||||
|-|-|-|
|Garmen|ic|shape (without|
|t Co.,|jacquard|restrictions on|
|Ltd.|knitting|the project);|
||whole|clothing, textiles|
||shape|and related|
|||accessories for|
|||buying and|
|||selling|
|||(excluding|
|||franchise,|
|||special control,|
|||proprietary|
|||products);|
|||operating|
|||import and|
|||export business|
|||(by "Import and|
|||Export|
|||Enterprise|
|||Qualification|
|||Certificate"|
|||deep free trade|
|||Certificate Zi|
|||No. 2002-339|
|||tube business);|
|||industrial|
|||projects (the|
|||specific items to|
|||be declared|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||separately).|||||
|Shenzhe|Wholly-|Shenzhe|||Operating|||||
|n|owned|n|||import and|||||
||||Operati|||||||
|Shenfan|subsidia||||export business|||||
||||ng|||||||
|g Import|ry||||(the specific|||||
||||import|||5,000,000||||
|&||||5,000,000.00|approval by the||100.00%|100.00%|Yes|
||||and|||.00||||
|Export|||||relevant import|||||
||||export|||||||
|Co.,|||||and export|||||
||||business|||||||
|Ltd.|||||business|||||
||||||handled)|||||
||Wholly-|||||||||
|Shengtou|owned|||||||||
|||Hongko|Polaroid|HKD10,000.||||||
|(HK) Co.,|Sub-||||||100.00%|100.00%|Yes|
|||ng|Sales|00||||||
|Ltd.|subsidia|||||||||
||ry|||||||||

（2）The company has no subsidiary company acquired via enterprise consolidation under same controlling.
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||After wrote down|
||||||||Other|||||||
||||||||||||||current period loss|
||||||||projects|||||||
||||||||||||||of minority|
|||||||Actual|balance|||||||
|Full name||||||||||||Amount used to write|shareholders over|
|||||||capital|essentiall|||||||
|of|Subsidiar|Registrati|Business|Registrati|Scope of|||Holding||Whether consolidation of|Interest of minority|down lost included in|equity beginning|
|||||||amounts|y from|proportion|Proportion of voting rights(%)|||||
|subsidiary|y tyle|on Place|character|on capital|business|||(%)||report form|shareholder|minority shareholder|share of minority|
|||||||of the|net|||||||
|company||||||||||||interest|shareholders in the|
|||||||end|investmen|||||||
||||||||||||||subsidiary from the|
||||||||t to|||||||
||||||||||||||parent company’s|
||||||||subsidiary|||||||
||||||||||||||share ,Balance of|

||
|-|
|Owner's equity|

 Notes: N/A
（3）The company has no subsidiary company acquired via enterprise consolidation under same controlling.
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||After wrote down current period|
||||||||Other projects|||||Amount used to||
|Full name|||||||||||||loss of minority shareholders over|
|||||||Actual capital|balance|Holding||Whether|Interest of|write down lost||
|of|Subsidiar|Registrati|Business|Registrati|||||Proportion of||||equity beginning share of minority|
||||||Scope of business|amounts of the|essentially from|proportion||consolidation of|minority|included in||
|subsidiary|y tyle|on Place|character|on capital|||||voting rights(%)||||shareholders in the subsidiary|
|||||||end|net investment to|(%)||report form|shareholder|minority||
|company|||||||||||||from the parent company’s|
||||||||subsidiary|||||shareholder interest||
||||||||||||||share ,Balance of Owner's equity|
||||||Wholesale,|||||||||
||||||manufacturing|||||||||
||||||and process|||||||||
|Shenzhen|||||various|||||||||
|Shengbo|||||specifications|||||||||
||||Productio|||||||||||
|Optoelect|Limited|||RMB|materials and|||||||||
|||Shenzhe|n and|||||||||||
|ronic|Liability|||300|apparatus of|300,000,000.00||100.00%|100.00%|Yes||||
|||n|sales of|||||||||||
|Technolo|Company|||million|polarizer,|||||||||
||||polarizer|||||||||||
|gy Co.,|||||LCD; import|||||||||
|Ltd|||||and export|||||||||
||||||business|||||||||
||||||(except|||||||||
||||||projects|||||||||

||
|-|
|inhibited by|
|law,|
|administrative|
|regulation,|
|State|
|Department),|
|the limited|
|projects shall|
|be managed|
|with the|
|permission|

2. Explanation to changes in scope of consolidation
Notes
N/A
□ Applicable√ not applicable
VII. Notes to the major items of consolidated financial statement
（I）Monetary Capital
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items||Exchange|||Exchange||
||Foreign currency||RMB|Foreign currency||RMB|
|||rate|||rate||
|Cash:|--|--|74,347.00|--|--|85,537.12|
|RMB|--|--|35,260.33|--|--|46,811.51|
|HKD|450.64|0.79375|360.69|450.64|0.78623|354.31|
|USD|6,284.10|6.1528|38,664.81|6,284.10|6.0969|38,313.53|
|JPY|1,000.00|0.06117|61.17|1,000.00|0.05777|57.77|
|Bank deposit：|--|--|1,055,109,536.86|--|--|946,765,779.60|
|RMB|--|--|1,040,738,253.33|--|--|898,251,353.68|
|HKD|2,688,997.24|0.79375|2,140,613.87|5,685,060.56|0.78623|4,469,716.78|
|USD|1,966,788.22|6.1528|12,200,970.72|7,219,904.74|6.0969|44,019,037.21|
|JPY|485,499.00|0.06117|29,698.94|444,374.00|0.05777|25,671.93|
|Other Capital|--|--|426,256.05|--|--|2,465,896.35|
|RMB|--|--|117,995.33|--|--|72,450.03|
|USD|49,691.42|6.1528|308,260.72|392,567.75|6.0969|2,393,446.32|
|Total|--|--|1,055,610,139.91|--|--|949,317,213.07|

 Notes of Monetary fund has not these conditions such as usage limitation for mortgage, pledge or frozen fund, stored overseas, with potential recovery risk.
(1)As of June 30,2014，monetary funds deposited abroad is HKD 378,722.4, equivalent to RMB303,129.41 ; USD 759,486.5, equivalent to RMB4,711,474.5 , in total of RMB5,014,603.91.
（2）As of June 30,2014，The fixed-term deposit balance of money fund is RMB 3,481,400.03, this part will not be treated as closing cash or closing cash equivalent in preparing cash flow statement.
(3）As of June 30,2014, Other monetary capitals as credit guarantee funds.
2. Bill receivable
（1）Classification Bill receivable
In RMB
||||
|-|-|-|
|Classification|Year-end balance|Year-beginning balance|
|Bank acceptance|||
||31,290,852.77|19,031,515.21|
|Total|31,290,852.77|19,031,515.21|

（2）Bill receivable under pledge
In RMB
||||||
|-|-|-|-|-|
|Issuer|Date of issue|Expired on|Amount|Remark|
|N/A|||||

（3）Bill transferred to account receivable for the issuer is not able to execute the liability , and notes endorsed to other parties but are not mature yet at the end of period.
In RMB
||||||
|-|-|-|-|-|
|Issuer|Date of issue|Expired on|Amount|Remark|
|N/A|||||

Bill transferred to account receivable for the issuer is not able to execute the liability
In RMB
||||||
|-|-|-|-|-|
|Issuer|Date of issue|Expired on|Amount|Remark|
|Shenzhen Sunlight|||||
|Display Technology Co.,|March 12, 2014|September 12, 2014|1,200,000.00||
|Ltd.|||||
|Jurong Juncheng|||||
||February 25, 2014|August 25, 2014|889,655.88||
|Electroc Co., Ltd.|||||
|Guangdong Shantou|||||
|Ultrasonic Electric Co.,|April 17, 2014|September 17, 2014|654,023.99||
|Ltd.|||||
|Chenzhou Jingxun|||||
||March 13, 2014|September 12, 2014|500,000.00||
|Optoelectronic Co., Ltd.|||||
|Xingyuan Electronic|||||
|Technology (Shenzhen)|April 11, 2014|October 11, 2014|500,000.00||
|Co., Ltd.|||||
|Total|--|--|3,743,679.87|--|

3. Interest receivable
（1）Interest receivable
In RMB
||||||
|-|-|-|-|-|
|Items|Amount at year|Increase at this period|Decrease at this period|Amount at period end|
||beginning||||
|Fixed deposit interest|5,520,035.21|8,860,884.96|7,135,344.13|7,245,576.04|
|Structure deposit interest|706,164.38|1,028,904.10|756,164.38|978,904.10|
|Total|6,226,199.59|9,889,789.06|7,891,508.51|8,224,480.14|

 4. Account receivable
1.Classification accojunt receivables.
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount in year-end||||Amount in year- begin||||
||Book Balance||Bad debt provision||Book Balance||Bad debt provision||
|Classification|||||||||
||Amount|Proportion(|Amount|Proportion(|Amount|Proportion(|Amount|Proportion(%|
|||%)||%)||%)||)|
|Receivables with major|||||||||
|individual amount and bad|||||||||
|debt provision provided|||||||||
|individually receivables|8,213,158.4||4,955,849.9||5,392,574||||
|||4.60%||60.34%||3.50%|3,600,130.73|66.76%|
|with major individual|4||1||.09||||
|amount and bad debt|||||||||
|provision provided|||||||||
|individually|||||||||
|Receivables provided bad debt provision in groups|||||||||
||166,402,75||8,550,609.5||142,903,5||||
|||93.20%||5.14%||92.77%|7,427,824.51|5.20%|
|Age of group|6.02||0||66.29||||
||166,402,75||8,550,609.5||142,903,5||||
|||93.20%||5.14%||92.77%|7,427,824.51|5.20%|
|Subtotal of group|6.02||0||66.29||||
|Account receivable with|||||||||
|minor individual amount|3,919,508.8||3,561,605.6||5,742,723||||
|||2.20%||90.87%||3.73%|4,588,703.33|79.90%|
|but bad debt provision is|6||0||.20||||
|provided|||||||||
||178,535,42||17,068,065.||154,038,8||15,616,658.5||
|Total||--||--||--||--|
||3.32||01||63.58||7||

Category explanation of accounts receivable:
Receivables with significant individual amount and provision made for individual item refers to customer accounts receivable with single amount more than 1 million, its provision for impairment will be made based on specific identification method. For receivables without significant individual amount, after deducting those parts which had conducted individual impairment test for its obvious difference in collectability with concrete evidence, making group by aging with character of credit risks and making provision for impairment based on aging analysis method. The receivables made provision for impairment without significant individual amount refers to those receivables which has obvious difference in collectability with concrete evidence, its provision will be made based on specific identification method.
Receivable accounts with large amount individually and bad debt provisions were provided
√ Applicable□ not applicable
In RMB
||||||
|-|-|-|-|-|
|Description|Book balance|Bad debt provision|Rate(%)|Reason to provide|
|||||The existence of|
|Receivable accounts with large amount|||||
||8,213,158.44|4,955,849.91|60.34%|the risk of bad|
|individually|||||
|||||debts|
|Total|8,213,158.44|4,955,849.91|--|--|

Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable□ not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Balance in year-end|||Balance in year-begin|||
||Balance of book||Bad debt|Balance of book|||
|||||||Bad debt|
|Age|||||||
|||Propertion(|||Propertion(||
||||provision||||
||Amount|||Amount|||
|||||||provision|
|||%)|||%)||
||||Amount||||
|Within 1 year|||||||
|Including：|--|--|--|--|--|--|
|Subtotal of within|||||||
||165,684,794.83|99.57%|8,277,360.40|141,337,368.98|98.90%|7,066,868.45|
|1 year|||||||
|1-2 years|214,328.75|0.13%|21,432.88|1,040,200.49|0.73%|104,020.05|
|2-3 years||||30,312.02|0.02%|9,093.61|
|Over 3 years|503,632.44|0.30%|251,816.22|495,684.80|0.35%|247,842.40|
|3-4 years||||420,903.80|0.30%|210,451.90|
|4-5 years|503,632.44|0.30%|251,816.22|74,781.00|0.05%|37,390.50|
|Total|166,402,756.02|--|8,550,609.50|142,903,566.29|--|7,427,824.51|

 Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable√Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
□Applicable√Not applicable
Receivable accounts with minor amount but on which had debt provisions are provided individually at end of period
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Description Of other|||||
||Book balance|Amount of bad debt|Rate|reason|
|receivables|||||
|Receivable accounts with|||||
|||||The existence of the risk|
|no large amount|3,919,508.86|3,561,605.60|90.87%||
|||||of bad debts|
|individually|||||
|Total|3,919,508.86|3,561,605.60|--|--|

（2）Receivable accounts written back or retrieved in the report period
In RMB
||||||
|-|-|-|-|-|
||||Bad debt provision||
||Reason to write back|Basis of original bad||Amount written back or|
|Description of receivables|||provided before writing||
||or retrieve|debt provision||retried|
||||back or retrieving||
|Receivable accounts with no|||||
||Account back|Long overdue|1,027,097.73|1,823,214.34|
|large amount individually|||||
|Total|--|--|1,027,097.73|--|

In the end report peiod, separate amount is not large , the account receivable with big combination risk after combined via risk character
In RMB
||||||
|-|-|-|-|-|
|Name|Book balance|Amount of bad debt|Proportion（%）|Reason|
|Receivable accounts with||||The existence of the risk|
||8,213,158.44|4,955,849.91|60.34%||
|large amount individually||||of bad debts|
|Receivable accounts with|||||
|||||The existence of the risk|
|no large amount|3,919,508.86|3,561,605.60|90.87%||
|||||of bad debts|
|individually|||||
|Total|12,132,667.30|8,517,455.51|--|--|

Notes
Individually insignificant but according to the credit risk characteristics of the combination of risky receivable acc ounts refers to the ending balance is 1 million or less and can not be contacted, the deterioration of the financial po sition of debtors and other objective evidence that it has occurred less value or aged over one year receivable acco unts combination.
（3）Receivable accounts actually written off in the report period
N/A
(4)Particulars about the receivable accounts due from shareholders with5% or over of theCompany’s shares In RMB
||||||
|-|-|-|-|-|
||Year-end balance||Year-beginning balance||
|Name|||||
||Book Balance|Amount|Book Balance|Amount|
|N/A|||||

（5）The front 5units’ information of account receivable
In RMB
||||||
|-|-|-|-|-|
||Relation with the|||Portion in total|
|Name||Amount|Ages||
||Company|||receivables (%)|
|Shenzhen China Star|||||
|Optoelectroincs|Client|43,394,502.04|Within 1 year|24.31%|
|Technology Co., Ltd.|||||
|Kunshan Longteng|||||
||Client|22,651,240.70|Within 1 year|12.68%|
|Optoelectronics Co., Ltd.|||||
|Shenzhen Tongxingda|||||
||Client|19,704,702.81|Within 1 year|11.04%|
|Technology Co., Ltd.|||||
|Guangxi Qinzhou|||||
|Tianshan|||||
||Client|7,038,832.76|Within 1 year|3.94%|
|Microelectronics Co.,|||||
|Ltd.|||||
|Shenzhen Jingxun|||||
||Client|6,555,113.68|Within 1 year|3.67%|
|Electronic Co., Ltd.|||||
|Total|--|99,344,391.99|--|55.64%|

（6）Account receivable from Related parties
In RMB
|||||
|-|-|-|-|
||||Portion in total receivables|
|Name|Relation with the company|Amount||
||||account(%)|
|Shenzhen Tianma||||
||Client, related parties|1,039,958.56|0.58%|
|Microelectronics Co., Ltd.||||
|Total|--|1,039,958.56|0.58%|

 5. Other receivable
1.Type analyses:
In RMB
||||
|-|-|-|
|Type|Amount in year-end|Amount in year-begin|

||||||||||
|-|-|-|-|-|-|-|-|-|
||Book Balance||Bad debt provision||Book Balance||Bad debt provision||
||Amount|Proportio|Amount|Proportio|Amount|Proportion(|Amount|Proportio|
|||n(%)||n(%)||%)||n(%)|
|Other receivables with|||||||||
|major individual amount|11,981,464.6||11,981,464.6||11,981,464.6||||
|||30.30%||100.00%||7.43%|11,981,464.60|100.00%|
|and had debt provision|0||0||0||||
|provided individuarlly|||||||||
|Other receivables provided bad debt provision in groups|||||||||
||27,044,742.5||||148,612,661.||||
|Account age group||68.40%|2,223,080.72|8.22%||92.19%|8,342,351.29|5.61%|
||9||||88||||
||27,044,742.5||||148,612,661.||||
|Subtotal of group||68.40%|2,223,080.72|8.22%||92.19%|8,342,351.29|5.61%|
||9||||88||||
|Other account|||||||||
|receivablewith minor|||||||||
|individual amount but|511,820.77|1.30%|511,820.77|100.00%|609,088.77|0.38%|609,088.77|100.00%|
|bad debt provision is|||||||||
|provided|||||||||
||39,538,027.9||14,716,366.0||161,203,215.||||
|Total||--||--||--|20,932,904.66|--|
||6||9||25||||

Category explanation of other accounts receivable:
Receivables with significant individual amount and provision made for individual item refers to customer accounts receivable with single amount more than 0.5 million, its provision for impairment will be made based on specific identification method. For receivables without significant individual amount, after deducting those parts which had conducted individual impairment test for its obvious difference in collectability with concrete evidence, making group by aging with character of credit risks and making provision for impairment based on aging analysis method. The receivables made provision for impairment without significant individual amount refers to those receivables which has obvious difference in collectability with concrete evidence, its provision will be made based on specific identification method.
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.√ Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
|Decription|Book balance|Amount of bad debts|Rate（%）|Reason|
|Receivable accounts with|||||
||11,981,464.60|11,981,464.60|100.00%|Estimated uncollectible|
|large amount individually|||||
|Total|11,981,464.60|11,981,464.60|--|--|

Other receivable accounts in Group on which bad debt provisions were provided on age analyzebasis：
√ Applicable□ Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||At end of term|||At beginning of term|||
||Book balance|||Bad debt provision|||
|Age|||||||
||||Bad debt provision||Proporti|Bad debt provision|
||Amount|Amount||Amount|||
||||||on(%)||
|Within 1 year|||||||
|Including ：|||||||
|Subtotal of within 1 year|24,646,791.27|91.13%|1,280,870.79|145,815,472.70|98.12%|7,323,309.09|
|1-2 years|467,634.33|1.73%|46,763.43|752,025.25|0.51%|75,192.52|
|2-3 years|348,560.00|1.29%|104,568.00|393,661.47|0.26%|118,098.46|
|Over 3 years|1,581,756.99|5.85%|790,878.50|1,651,502.46|1.11%|825,751.22|
|3-4 years|1,357,500.21|5.02%|678,750.11|1,256,837.10|0.85%|628,418.55|
|4-5 years|214,256.78|0.79%|107,128.39|274,820.78|0.18%|137,410.39|
|Over 5 years|10,000.00|0.04%|5,000.00|119,844.58|0.08%|59,922.29|
|Total|27,044,742.59|--|2,223,080.72|148,612,661.88|--|8,342,351.29|

 Other receivable account in Group on which bad debt provisions were provided on percentage basis
□ Applicable√ not applicable
Receivable account on which bad debt provisions are provided by other ways in the portfolio
□ Applicable√ not applicable
Other receivable accounts with minor amount but were provided had debt provisions individually at end of period√Applicable□ not applicable
In RMB
||||||
|-|-|-|-|-|
|Content|Book balance|Bad debt Provision|Rate（%）|Reason|
|Other Receivable|||||
|accounts with no large|511,820.77|511,820.77|100.00%|Estimated uncollectible|
|amount individually|||||
|Total|511,820.77|511,820.77|--|--|

（2）Other receivable accounts written back or retrieved in the report period
In RMB
||||||
|-|-|-|-|-|
||||Accumulatively Accruing||
||Cause of written back|Determine the Basis of|Allowances for Bad Debt|Amount of Reversal or|
|Content|||||
||oor retrieved|Bad Debt Provision|before Reversal or|Recovery|
||||Recovery||
|Tianjian plant deposits, etc.|Tianjian plant deposits||||
|||Estimated uncollectible|97,268.00|97,268.00|
||, etc.||||
|Total|--|--|97,268.00|--|

Separate amount is big at end of the period or not big but other account receivable and doubtful reserves shall be withdrawn
In RMB
||||||
|-|-|-|-|-|
|Description|Book balance|Amount of bad debts|Rate（%）|Reason|
|Other Receivable|||||
|accounts with large|11,981,464.60|11,981,464.60|100.00%|Estimated uncollectible|
|amount individually|||||
|Other Receivable|||||
|accounts with no large|511,820.77|511,820.77|100.00%|Estimated uncollectible|
|amount individually|||||
|Total|12,493,285.37|12,493,285.37|--|--|

Notes
Individually insignificant but according to the credit risk characteristics of the combination of risky receivable acc ounts refers to the ending balance is 0.5 million or less and can not be contacted, the deterioration of the financial position of debtors and other objective evidence that it has occurred less value or aged over one year receivable ac counts combination.
（3）Other receivable accounts actually written off in the report period
N/A
（4）Particulars about the other receivable accounts due from shareholders with5% or over of theCompany’s shares in the report period
In RMB
||||||
|-|-|-|-|-|
||Balance at the period end||Balance in year-begin||
|Name||Amount of bad debt||Amount of bad debt|
||Book amount||Book amount||
|||provision||provision|
|None|||||

（5）The front 5units’ information of other account receivable
In RMB
||||||
|-|-|-|-|-|
||Relation with thecompany|||Portion in total other|
|Name||Amount|Ages||
|||||receivables(%)|
|Export tax rebates|Non-related parties|19,154,216.02|Within 1 year|48.44%|
|Jiangxi Xuanli String|||||
||Non-related parties|11,389,044.60|4-5 years|28.81%|
|Co., Ltd.|||||
|Anhui Huapeng Textile|||||
||Sharing Company|2,700,000.00|Within 1 year|6.83%|
|Co., Ltd.|||||

||||||
|-|-|-|-|-|
|Shenzhen Finance|||||
||Non-related parties|1,047,437.10|3-4 years|2.65%|
|Committee|||||
|Shenzhen Tianlong|||||
|Industry & trade Co.,|Non-related parties|592,420.00|Over 5 years|1.50%|
|Ltd.|||||
|Total|--|34,883,117.72|--|88.23%|

（6）Other Account receivable from Related parties
In RMB
|||||
|-|-|-|-|
||||Portion in total other|
|Name|Relation with the company|Amount||
||||receivables(%)|
|Anhui Huapeng Textile Co.,||||
||Sharing Company|2,700,000.00|6.83%|
|Ltd.||||
|Total|--|2,700,000.00|6.83%|

 6.Payment in advance
（1）Age analysis
In RMB
||||||
|-|-|-|-|-|
||Balance in year-end||Balance in year-begin||
|Age||Proportion||Proportion|
||Amount||Amount||
|||（%）||（%）|
|Within 1 year|56,097,505.25|100.00%|19,929,907.06|94.76%|
|1-2 years|||1,101,870.10|5.24%|
|Total|56,097,505.25|--|21,031,777.16|--|

（2） The front 5units’ information of Payment in advance
In RMB
||||||
|-|-|-|-|-|
||Relation with the||||
|Name||Amount|Time|Reason of not clearing|
||company||||
|Supplier 1|Supplier|7,720,877.91|Within 1 year|Not available|
|Supplier 2|Supplier|6,239,915.32|Within 1 year|Not available|
|Supplier 3|Supplier|5,053,600.03|Within 1 year|Not available|
|Supplier 4|Supplier|4,002,681.70|Within 1 year|Not available|
|Supplier 5|Supplier|3,393,364.92|Within 1 year|Not available|
|Total|--|26,410,439.88|--|--|

（3）Prepayment received by shareholding parties holding5% or above of theCompany’s shares in the report period.
In RMB
||||||
|-|-|-|-|-|
||Balance in year-end||Balance in year-begin||
|Name||Amount of Bad debt||Amount of Bad debt|
||Book Balance||Book Balance||
|||provision||provision|
|None|||||

（4）Statements on prepayments
The ending balance of payment in advance increased by RMB 35.0657 million and166.73% over beginning of period mainly due to the increase of export orders by the end of current period.
7．Inventory
（1）Inventory types
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items|Book balance|Provision for|Book value|Book balance|Provision for bad|Book value|
|||bad debts|||debts||
|Raw materials|139,411,519.97|31,569,170.01|107,842,349.96|118,447,861.42|30,079,424.36|88,368,437.06|
|Processing|||||||
||12,261,770.44||12,261,770.44|8,801,829.49||8,801,829.49|
|products|||||||
|Stock goods|141,719,545.90|35,537,616.25|106,181,929.65|161,438,049.40|54,930,603.47|106,507,445.93|
|Turnover materials|133,102.72||133,102.72|133,102.72||133,102.72|
|Total|293,525,939.03|67,106,786.26|226,419,152.77|288,820,843.03|85,010,027.83|203,810,815.20|

（2）Inventory Impairment provision
In RMB
|||||||
|-|-|-|-|-|-|
||Book balance at year|Amount accounted in|Amount Decreased in current period||Book balance at period|
|Type||||||
||beginning|current period|Transferred back|Reselling|end|
|Raw materials|30,079,424.36|1,489,745.65|||31,569,170.01|
|Stock goods|54,930,603.47|8,469,718.27||27,862,705.49|35,537,616.25|
|Total|85,010,027.83|9,959,463.92||27,862,705.49|67,106,786.26|

（3）Condition of inventory value decline
|||||
|-|-|-|-|
|Items|Base of stock value decline|Reason of issuing back to stock|Proportion of issuing back|
|||value decline plan of this period|amount to the stock balance at|
||||this period|
||Net realisable value is lower tha|||
|Raw materials||||
||n the corresponding cost|||
||Net realisable value is lower tha|||
|Stock goods||||
||n the corresponding cost|||
||Net realisable value is lower tha|||
|Processing products||||
||n the corresponding cost|||
||Net realisable value is lower tha|||
|Tumover materials||||
||n the corresponding cost|||

8.Other current assets
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Structural Deposit||100,000,000.00|
|Total||100,000,000.00|

 9.Disposable financial assets
（1）Sellable financial assets
In RMB
||||
|-|-|-|
|Items|Fair value at end of term|Fair value at beginning of term|
|Available-for-sale equity instruments|24,343,947.21|41,829,021.22|
|Total|24,343,947.21|41,829,021.22|

 This issue will be re-held-to-maturity investments classified as available for sale financial assets, the current re- classification of the amount of RMB 0.00 .
Explanation of financial assets available for sale:
The amount of available for sale assets are held by Shenzhen Victor Onward Textile Industrial Co., Ltd. shares, (1) Shen Victor Onward A of the company holds a total of 1,722,794 shares of the outstanding shares of the highest A share price of RMB 10.44 in June 30, 2014, (2) Fawer of the company holds a total of 985,733 shares of the outstanding shares of the highest A share price of RMB 6.45 in June 30, 2014.
(2)Impairment of financial assets available for sale
In RMB
||||||
|-|-|-|-|-|
|Type of financial assets available for|Equity instrument|Debt instrument|||
||||Other|Total|
|sale|available for sale|available for sale|||
|Cost of equity instruments /|||||
||8,408,102.71|||8,408,102.71|
|Amortized cost of a debt instrument|||||
|Fair value at the end|24,343,947.21|||24,343,947.21|
|Changes in the amount of the cumulat|||||
|ive fair value recognized in other com|13,353,224.04|||13,353,224.04|
|prehensive income|||||
|Amount of provision for impairment|||||
||2,947,341.67|||2,947,341.67|

（3）Chinges of impairment of financial assets available for sale in period
In RMB
||||||
|-|-|-|-|-|
|Type of financial assets|Equity instrument|Debt instrument|||
||||Other|Total|
|available for sale|available for sale|available for sale|||
|Impairment amount at the|||||
||2,947,341.67|||2,947,341.67|
|beginning of period|||||
|Impairment amount at the|||||
||2,947,341.67|||2,947,341.67|
|end of period|||||

10.Investment to joint venture and affiliated Enterprises
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Voting||End total|End total net|Total current||
|Name|Proportion (%)||End total assets||||Net profit|
|||proportion(%)||liablilities|assets|revenues||
|I. Joint venture||||||||
|Shenzhen||||||||
|Haohao||||||||
|Property|50.00%|50.00%|6,637,734.33|580,956.71|6,056,777.62|968,225.00|526,562.01|
|Leasing Co.,||||||||
|Ltd.||||||||
|Shenzhen Xieli||||||||
|Automobile|50.00%|50.00%|8,478,024.73|2,074,557.24|6,403,467.49|861,600.00|287,378.35|
|Co., Ltd.||||||||
|II. Affiliated enterprise||||||||
|Shenzhen||||||||
||40.25%|40.25%|5,557,056.25|1,151,951.33|4,405,104.92|285,000.00|36,281.71|
|Changlianfa||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|Printing &||||||||
|dyeing||||||||
|Company||||||||
|Jordan||||||||
|Garment|35.00%|35.00%|13,708,258.37|5,204,366.00|8,503,892.37|13,253,644.28|518,457.69|
|Factory||||||||
|Hengshun||||||||
|（Saipan）||||||||
||35.00%|35.00%||||||
|Industry Co.,||||||||
|Ltd.||||||||

Explanation on major accounting policy and accounting estimation in joint venture and affiliated enterprises difference from the policy and estimation of the Company:
There is no significant difference among the significant accounting policy of joint venture and Affiliated enterprise , the accounting estimate and the company accounting policy, the accounting estimate.
11. Long term share equity investment.
(1) Long-term equity investments
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Explainati||||
|||||||||on of||||
|||||||||diffirence||||
|||||||||between||||
|||||||Sharehold|Voting|sharehold||||
||Accounti|Initial||||ing|right|ing||||
||||Original||Ending|||||Current|Cash|
|Name|ng|investmen||change||proportio|proportio|proportio|Devalue|||
||||balance||Balance|||||devalue|bonus|
||method|t cost||||n in the|n in the|n and||||
|||||||investee|investee|voting||||
|||||||||right||||
|||||||||proportio||||
|||||||||n in||||
|||||||||investee||||
|Shenzhen||||||||||||
|Jintian||||||||||||
|Industry|Cost|14,831,68|14,831,68||14,831,68||||14,831,68|||
|||||||3.68%|3.68%|||||
|（ Group|method|1.50|1.50||1.50||||1.50|||
|） Co.,||||||||||||
|Ltd.||||||||||||
|||||-||||||||
|Shenzhen|Equity|||||||||||
|||2,040,102|3,662,282||3,450,733|||||||
|||||211,549.0||50.00%|50.00%|||||
|Haohao|method|.73|.82||.77|||||||
|||||5||||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Property|||||||||
|Leasing|||||||||
|Co., Ltd.|||||||||
|Shenzhen|||||||||
|Xieli|||||||||
||Equity||||||||
|||1,529,483|3,324,699|143,689.1|3,468,388|||266,654.9|
|Automobi||||||50.00%|50.00%||
||method|.67|.57|7|.74|||9|
|le Co.,|||||||||
|Ltd.|||||||||
|Shenzhen|||||||||
|Changlia|||||||||
|nfa|Equity|2,524,500|1,758,451||1,773,054||||
|||||14,603.39||40.25%|40.25%||
|Printing|method|.00|.34||.73||||
|& dyeing|||||||||
|Company|||||||||
|Jordan|||||||||
||Equity||||||||
|||7,240,625|2,856,402|119,959.6|2,976,362||||
|Garment||||||35.00%|35.00%||
||method|.00|.65|8|.33||||
|Factory|||||||||
|Hengshun|||||||||
|（ Saipan|||||||||
||Equity||||||||
|||8,228,350|||||||
|）|||0.00||0.00|35.00%|35.00%||
||method|.00|||||||
|Industry|||||||||
|Co., Ltd.|||||||||
|Shenzhen|||||||||
|Jiafeng|Cost|16,800,00|16,800,00||16,800,00|||16,800,00|
|||||||10.80%|10.80%||
|Textile|method|0.00|0.00||0.00|||0.00|
|Co., ltd.|||||||||
|Shenzhen|||||||||
|Guanhua|||||||||
||Cost||||||||
|||5,491,288|5,491,288||5,491,288|||5,058,307|
|Prnting &||||||45.00%|45.00%||
||method|.71|.71||.71|||.01|
|dyeing|||||||||
|Co., Ltd.|||||||||
|Shenzhen|||||||||
|||2,600,000|2,600,000||2,600,000||||
||Cost|||||2.87%|2.87%||
|Union||.00|.00||.00||||

|||||||||
|-|-|-|-|-|-|-|-|
|Develop|method|||||||
|ment||||||||
|Group||||||||
|Co., Ltd||||||||
|Shenzhen||||||||
|Xiangjian|Cost|160,000.0|160,000.0|160,000.0||||
||||||20.00%|20.00%||
|g Trade|method|0|0|0||||
|Co., Ltd.||||||||
|Shenzhen||||||||
|Xinfang|Cost|524,000.0|524,000.0|524,000.0|||112,000.0|
||||||20.00%|20.00%||
|Knitting|method|0|0|0|||0|
|Co., Ltd.||||||||
|Hongkon||||||||
|g Yehui||||||||
||Cost|||||||
|||2,392,914|2,392,914|2,392,914|||421,830.0|
|Internatio|||||17.85%|17.85%||
||method|.37|.37|.37|||0|
|nal Co.,||||||||
|Ltd.||||||||
|Shenzhen||||||||
|Dailisi|Cost|532,062.5|2,559,856|2,559,856|||786,200.0|
||||||30.00%|||
|Knitting|method|0|.26|.26|||0|
|Co., Ltd.||||||||
|Anhui||||||||
|Huapeng|Cost|25,000,00|25,410,20|25,410,20||||
||||||50.00%|||
|Textile|method|0.00|9.50|9.50||||
|Co., Ltd.||||||||
|Shenzhen||||||||
|South|Cost|1,500,000|1,500,000|1,500,000||||
||||||9.84%|9.84%||
|Textile|method|.00|.00|.00||||
|Co., Ltd.||||||||
|Shenzhen||||||||
||Cost|||||||
|||1,800,000|1,800,000|1,800,000||||
|Tongyi|||||18.00%|18.00%||
||method|.00|.00|.00||||
|Silk Co.,||||||||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Ltd.|||||||||||
|||93,195,00|85,671,78||85,738,48||||36,956,64|1,320,030|
|Total|--|||66,703.19||--|--|--|||
|||8.48|6.72||9.91||||3.50|.00|

（2）Constrains on the ability to transfer capital to invested entities
During the reporting period, the company is not limited to transfer funds to the Investment Company limited circumstances.
The company has no long-term equity investment of limited sales condition in the end.
12.Investment real estate
（1）Measured by the cost of investment in real estate
In RMB
||||||
|-|-|-|-|-|
|Items|Book amount at year|Increase at this period|Decrease at this period|Book balance in year -end|
||beginning||||
|1. Total original price|254,042,931.46|||254,042,931.46|
|1.House, Building|254,042,931.46|||254,042,931.46|
|II.Total accumulated|||||
|depreciation|||||
||106,562,343.61|3,287,656.20||109,849,999.81|
|accumulated|||||
|amortization|||||
|1.House, Building|106,562,343.61|3,287,656.20||109,849,999.81|
|III. Total book value|||||
|of investment real|147,480,587.85|-3,287,656.20||144,192,931.65|
|estate|||||
|1.House, Building|147,480,587.85|-3,287,656.20||144,192,931.65|
|V. Total book value of|||||
||147,480,587.85|-3,287,656.20||144,192,931.65|
|investment real estate|||||
|1.House, Building|147,480,587.85|-3,287,656.20||144,192,931.65|

 In RMB
|||
|-|-|
||This period|
|Current amount of depreciation and amortization|3,287,656.20|
|Accrual amount of impairment provision for investment properties of||
||0.00|
|thecurrent period||

13. Fixed assets
（1）Fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Book amount at|Increase at this period||Decrease at this|Book balance in|
||year beginning|||period|year -end|
|1.Total of Original price of||||||
||1,115,569,214.29|1,133,229.16||3,134,254.12|1,113,568,189.33|
|fixed assets||||||
|Including ：House and||||||
||460,212,024.34|||30,240.70|460,181,783.64|
|building||||||
|Machine equipment|634,232,821.61|243,294.00||2,999,508.20|631,476,607.41|
|Transporation Equipment|3,569,501.03|121,656.69|||3,691,157.72|
|Electricity equipment and||||||
||17,554,867.31|768,278.47||104,505.22|18,218,640.56|
|other||||||
||Book balance at|Current term new|Current term|Decrease at this|Book balance in|
|--||||||
||year beginning|extra|provision|period|year -end|
|II. Total of Accumulated||||||
||237,087,882.66||35,941,506.84|174,923.33|272,854,466.17|
|depreciation||||||
|Including ：House and||||||
||63,245,461.20||6,535,476.86||69,780,938.06|
|building||||||
|Machine equipment|161,999,430.17||28,324,232.45|73,456.80|190,250,205.82|
|Transporation Equipment|1,982,265.90||195,469.21||2,177,735.11|
|Electricity equipment and||||||
||9,860,725.39||886,328.32|101,466.53|10,645,587.18|
|other||||||
||Book balance in||||Balance in year-|
|--||--||||
||year-begin||||end|
|III. Total book value of||||||
||878,481,331.63|--|||840,713,723.16|
|Fixed assets||||||
|Including ：House and||||||
||396,966,563.14|--|||390,400,845.58|
|building||||||
|Machine equipment|472,233,391.44|--|||441,226,401.59|
|Transporation Equipment|1,587,235.13|--|||1,513,422.61|
|Electricity equipment and||||||
||7,694,141.92|--|||7,573,053.38|
|other||||||
|IV. Total of Devalued||||||
||235,233.62|--|||235,233.62|
|Provision||||||
|Transporation Equipment|235,233.62|--|||235,233.62|

|||||
|-|-|-|-|
|Electricity equipment and||||
|||--||
|other||||
|V. Total book value of Fixed|878,246,098.01||840,478,489.54|
|||--||
|assets||||
|Including ：House and||||
||396,966,563.14|--|390,400,845.58|
|building||||
|Machine equipment|472,233,391.44|--|441,226,401.59|
|Transporation Equipment|1,352,001.51|--|1,278,188.99|
|Electricity equipment and||||
||7,694,141.92|--|7,573,053.38|
|other||||

(2) Current depreciation is RMB 35,941,506.84 . The issue of fixed assets transferred from construction in progress original price is RMB0.00.
（3）Fixed assets with un-completed property certificates
||||
|-|-|-|
|Items|Reasons for un-completed certificate|Temes expected for certifi cate completed|
|TFT-|||
|||In second half of 2014 is expected to|
|LCD polarizing film project phase 1 fixed|||
|||go through.|
|assets of houses and buildings|||

Explanation of fixed assets
（1）As of June 30,2014，The company has no temporary situation of idle fixed assets.
（2）As of June 30,2014，The company has no lease by financing the fixed assets of the situation.
（3）As of June 30,2014，The company did not lease fixed assets through operating lease.
(4)TFT-
LCD polarizing film project phase 1 fixed assets of houses and buildings, the company has not yet completed th e property certificate which expected to be managed in the second half of 2014
14.Project under construction
（1）Project under construction
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items|Book balance|Provision for|Book Net value|Book balance|Provision for|Book Net value|
|||devaluation|||devaluation||
|TFT-LCD polarizing film II|||||||
||39,987,377.47||39,987,377.47|27,620,841.73||27,620,841.73|
|project|||||||
|Guanhua Building project|25,038,407.19||25,038,407.19|22,003,109.19||22,003,109.19|
|Research and development|||||||
||13,662,830.04||13,662,830.04|10,077,241.80||10,077,241.80|
|center expansion project|||||||
|Other|7,166,245.67||7,166,245.67|3,216,023.27||3,216,023.27|
|Total|85,854,860.37||85,854,860.37|62,917,215.99||62,917,215.99|

(2) The variation in constructing the engineering project
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Includin||||
|||||||||Capitalis|g：||||
|||||||||||Capitalis|||
|||Amount||Transferr||||ation of|Current||||
||||Increase|||||||ation of||Balance|
|||at year||ed to|Other|Proportio|Progress|interest|amount||Sourceof funds||
|Name|Budget||at this|||||||interest||in year-|
|||beginnin||fixed|decrease|n(%)|of work|accumul|of||||
||||period|||||||ratio||end|
|||g||assets||||ated|capitaliz||||
|||||||||||（%)|||
|||||||||balance|ation of||||
||||||||||interest||||
|TFT-|||||||||||||
|LCD|||||||||||||
||1,470,93|27,620,8|12,366,5||||||||Collectand Self-|39,987,3|
|polarizin||||||3.00%|3%||||||
||0,000.00|41.73|35.74|||||||||77.47|
|g film II|||||||||||||
|project|||||||||||||
||1,470,93|27,620,8|12,366,5|||||||||39,987,3|
|Total||||||--|--|||--|--||
||0,000.00|41.73|35.74|||||||||77.47|

（3）Impairment Provisions of Construction in progress
In RMB
|||||||
|-|-|-|-|-|-|
||Balance in year-|Increase at this|Decreae at this|||
|Items||||Balance in year-end|Reason|
||begin|period|period|||
|N/A||||||

（4）Major projects under construction
||||
|-|-|-|
|Items|Progress work|Remark|
|TFT-LCD polarizing film II project|3%||

15. Intangible assets
（1） Intangible assets
In RMB
||||||
|-|-|-|-|-|
|Items|Book Balance in year-|||Book Balance in year-|
|||Increase at this period|Decrease at this period||
||begin|||end|
|1. Total original price|62,275,410.50|191,700.00||62,467,110.50|
|Land Use right|48,765,130.50|||48,765,130.50|
|Proprietary technology|11,825,200.00|||11,825,200.00|
|Software|1,685,080.00|191,700.00||1,876,780.00|
|II. Total amount of|18,397,339.13|1,144,192.04||19,541,531.17|

|||||
|-|-|-|-|
|accumulated||||
|Land Use right|7,132,351.17|642,677.64|7,775,028.81|
|Proprietary technology|11,036,800.00|394,200.00|11,431,000.00|
|Software|228,187.96|107,314.40|335,502.36|
|III. Book value of intangible||||
||43,878,071.37|-952,492.04|42,925,579.33|
|assets||||
|Land Use right|41,632,779.33|-642,677.64|40,990,101.69|
|Proprietary technology|788,400.00|-394,200.00|394,200.00|
|Software|1,456,892.04|84,385.60|1,541,277.64|
|Land Use right||||
|Proprietary technology||||
|Software||||
|V. Total Book value of|43,878,071.37||42,925,579.33|
|||-952,492.04||
|intangible assets||||
|Land Use right|41,632,779.33|-642,677.64|40,990,101.69|
|Proprietary technology|788,400.00|-394,200.00|394,200.00|
|Software|1,456,892.04|84,385.60|1,541,277.64|

 The amortization amount is RMB 1,144,192.04.
16. Goodwill
In RMB
|||||||
|-|-|-|-|-|-|
|Name of the investee or the|Balance in year-|Increase at this|Decrease at this|Book Balance in|Ending devalue|
|matter of forming Goodwill|begin|period|period|year-end|provision|
|Shenzhen Beauty Century||||||
||2,167,431.21|||2,167,431.21|2,167,431.21|
|Garment Co., Ltd.||||||
|Shenzhen Shenfang Import and||||||
||82,156.61|||82,156.61|82,156.61|
|Export Co., Ltd.||||||
|Shenzhen Shengbo||||||
|Ophotoelectric Technology Co.,|9,614,758.55|||9,614,758.55||
|Ltd||||||
|Total|11,864,346.37|||11,864,346.37|2,249,587.82|

 Description of the impairment of business reputation impairment testing methods and provisioning methods: goodwill related to the asset group or a combination of asset group signs of impairment exists, according to the following steps to deal with: first, do not include business reputation asset group or a Group portfolio of assets impairment testing, calculate recoverable amount, and with the relevant book value compared to the
corresponding recognized devalue losses; and then again with the goodwill asset group or a group of portfolio
asset impairment testing, compare the related assets group or groups of assets portfolio book value (including the
share of the book value of business reputation in part) to its recoverable amount.
17. Long-term amortization expenses
In RMB
||||||||
|-|-|-|-|-|-|-|
|Items|||Amount of|Other Decrease|Balance in year|Other|
||Balance in year-|Increase at this|||||
||||amortization at||end||
||begin|period|||||
||||current period||||
|Renovation costs|589,238.14||248,254.44||340,983.70||
|Other|246,041.04|11,000.00|17,438.58||239,602.46||
|Total|835,279.18|11,000.00|265,693.02||580,586.16|--|

 18. Deferred income tax assets/Deferred income tax liabilities
(1）Recognized deferred income tax assets and deferred income tax liabilities
Recognized deferred income tax assets and deferred income tax liabilities
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Deferred income tax assets|||
|Assets depreciation reserves|15,619,139.01|19,534,074.48|
|Deductible loss|20,143,883.87|20,143,883.87|
|Unattained internal sales profits|447,732.41|455,566.34|
|Subtotal|36,210,755.29|40,133,524.69|
|Deferred income tax liability|||
|Increase and decrease of fair value of available-|||
||4,075,141.42|7,844,924.43|
|for-sale financial assets|||
|Assessed tax-free periods of time caused by|||
|||52,384,071.50|
|differences in income|||
|Subtotal|4,075,141.42|60,228,995.93|

 Details of un-recognized deferred income tax assets
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Deductible loss|27,369,509.36|19,384,041.65|
|Total|27,369,509.36|19,384,041.65|

 The deductible losses of un-recognized deferred income tax assets are expired in the follow year:
In RMB
|||||
|-|-|-|-|
|Year|At end of term|At beginning of term|Notes|
|2018|182,463,395.73|129,226,944.33||

|||||
|-|-|-|-|
|Total|182,463,395.73|129,226,944.33|--|

Details of taxable difference and deductible differences
In RMB
||||
|-|-|-|
||Amount of temporary differences||
|Items|||
||At end of term|At beginning of term|
|Differences in taxable items|||
||31,784,431.10|25,160,518.63|
|Provision for bad debts|||
|Provision for falling price of inventory|67,106,786.26|85,010,027.83|
|Impairment of long-term equity investments|5,227,896.65|5,227,896.65|
|Unattained internal sales profits|2,984,882.69|3,037,108.90|
|Deductible loss|134,292,559.16|134,292,559.16|
|Loss of available-for-sale financial assets|2,947,341.67|2,947,341.67|
|Subtotal|244,343,897.53|255,675,452.84|
|Differences in taxable items|||
|Increase and decrease of fair value of available-for-|||
||16,300,565.68|31,379,697.72|
|sale financial assets|||
|Stock equity disposition of the temporary taxable|||
|||209,536,286.00|
|difference and the taxable income|||
||16,300,565.68|240,915,983.72|
|Subtotal|||

（2）Net amount of deferred income tax assets and deferred income tax liabilities after deduction
Item of deferred income tax assets and liability after mutual offset
In RMB
||||||
|-|-|-|-|-|
|||Temporarily||Temporarily|
||Deferred Income Tax||Deferred Income Tax||
|||Deductable or||Deductable or|
||Assets or Liabilities||Assets or Liabilities||
|Items||Taxable Difference at||Taxable Difference at|
||at the End of Report||at the Beginning of||
|||the End of Report||the Beginning of|
||Period||Report Period||
|||Period||Report Period|
|Deferred income tax assets：|36,210,755.29||40,133,524.69||
|Deferred income tax liability：|4,075,141.42||60,228,995.93||

19. Provision for depreciation of assets
In RMB
|||||||
|-|-|-|-|-|-|
||||Decreased in this period|||
||Book balance at the|Increase in this|||Balance in year-|
|Items||||Switch||
||beginning of term|period|Switch back||end|
|||||cancellation||

|||||||
|-|-|-|-|-|-|
|I.Provision for bad debts|36,549,563.23|-3,705,610.15|1,124,365.73||31,719,587.35|
|2 Inventory impairment|85,010,027.83|9,959,463.92||27,862,705.49|67,106,786.26|
|provision||||||
|5. Long-term equity|||||36,956,643.50|
|investment impairment|36,956,643.50|||||
|provision||||||
|7.Fixed asset impairment|235,233.62||||235,233.62|
|provision||||||
|13. Goodwill impairment|||||2,249,587.82|
||2,249,587.82|||||
|provision||||||
|Total|161,001,056.00|6,253,853.77|1,124,365.73|27,862,705.49|138,267,838.55|

 20. Short-term loan
（1）Categories of short-term loans
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-Beinning|
|Guaranteed loan|9,742,632.72||
|Total|9,742,632.72||

Description of short-term loans classifications: The short-term loans are classified by loans.
21. Account payable
（1）Account payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Within 1 year|110,437,027.54|102,192,867.77|
|1-2 years|723,126.73|718,719.91|
|2-3 years|37,713.81|185,976.28|
|3-4 years|43,266.67|34,702.31|
|4-5 years|4,884,804.87|4,750,532.17|
|Over 5 years|417,308.57|415,057.41|
|Total|116,543,248.19|108,297,855.85|

 (2)There was account payable due from shareholders with more than5% (including5%) of the voting shares of the company
In RMB
||||
|-|-|-|
|Name|Balance in year-end|Balance in year-begin|

||
|-|
|None|

22. Advance account
(1). Advance account
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Within 1 year|62,251,054.27|31,021,762.38|
|1-2 years|968.40|968.90|
|2-3 years|9,072.57|9,072.57|
|3-4 years|50.76|50.76|
|4-5 years|1,516.80|1,516.80|
|Over 5 years|639,024.58|639,024.58|
|Total|62,901,687.38|31,672,395.99|

（2）There was Advance account due from shareholders with More than5% (including5%) of the voting shares of the company.
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|None|||

（3）The description of large-sum accounts payable with the age over 1 year:
The receipts in advance with the age more than 1 year in thecompany’s advance receipts is the unsettled sporadic balance with the clients, so there is no large-sum advance receipts.
23. Payable Employee wage
In RMB
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase in this period|Payable in this period|Balance in year-end|
|I.Wages, bonuses,|||||
|allowances and|33,936,638.64|48,763,498.18|56,435,066.28|26,265,070.54|
|subsidies|||||
|II..Employee welfare||4,054,852.12|4,054,852.12||
|III. Social insurance|||||
|||5,198,639.35|5,198,639.35||
|premiums|||||
|Including：Medical|||||
|||519,802.52|519,802.52||
|insurance|||||
|Basic old-age|||||
|||4,299,303.26|4,299,303.26||
|insurance premiums|||||

||||||
|-|-|-|-|-|
|Pension Payment||616,758.93|616,758.93||
|Unemployment|||||
|||208,399.69|208,399.69||
|insurance|||||
|Work injury|||||
|||83,659.78|83,659.78||
|insurance|||||
|Maternity insurance||87,474.10|87,474.10||
|IV. Public reserves|||||
|||2,363,329.14|2,363,329.14||
|for housing|||||
|V.Compensation|||||
|due to|||||
|||306,829.46|306,829.46||
|terminationof|||||
|labor contract|||||
|VI.Other|1,336,637.04|1,561,552.35|1,520,698.78|1,377,490.61|
|Total|35,273,275.68|62,248,700.60|69,879,415.13|27,642,561.15|

 The amounts of arrears of staff salary and welfare payable are RMB 0 00.
The amounts of trade union funds and staff education expenses are RMB1,186,668.31, the amounts of non- monetary benefits are RMB 0.00, and the compensations for the lifting of labor relations is 0
The expected release time and amount of staff salary and welfare payable are arranged in the beginning of next half year.
24. Tax Payable
In RMB
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|VAT|-88,681,803.46|-83,251,855.37|
|Business Tax|606,534.97|545,872.17|
|Enterprise Income tax|7,557,272.87|4,631,220.77|
|Individual Income tax|488,540.60|248,980.27|
|City Construction tax|24,325.41|51,408.95|
|House property Tax|788,537.22|178,701.74|
|Education subjoin|61,083.43|80,428.96|
|Other|491,975.33|302,006.12|
|Total|-78,663,533.63|-77,213,236.39|

 Statement on tax payable: Please provide the calculating processes then taxable income is balanced between branch companies or factories as approved by the tax bureau.
The subsidiary and branch of the company have no taxable income transfers of each other.
25. Interest Payable
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Long-term loans interest of installment and interest|||
||28,600,063.92|23,970,903.52|
|charge|||
|Total l|28,600,063.92|23,970,903.52|

 26. Other payable
（1）Other payable
In RMB
||||
|-|-|-|
|Name|Balance in year-end|Balance in year-begin|
|Within 1 year|24,923,784.42|15,774,911.68|
|1-2 years|24,161,091.47|33,392,315.67|
|2-3 years|21,106,200.49|39,861,731.13|
|3-4 years|4,720,178.47|3,232,041.30|
|4-5 years|1,151,986.20|1,379,841.65|
|Over 5 years|24,021,446.39|26,448,984.85|
|Total|100,084,687.44|120,089,826.28|

（2）There were other receivable from the main shareholders of the Company holding nore than5% (including5%) of the total shares of the Company.
In RMB
||||
|-|-|-|
||Balance in year-end|Balance in year-begin|
|Name|||
|N/A|||

（3）Statement on large amount other payable accounts due for over one year
Among the payables, large amounts of the other payables are mainly for TFT-
LCD polarizer phase I project and equipment funds due for over one year.
（4）Statement on large amount other payable accounts
Among the payables, large amounts of the payables are mainly for TFT-
LCD polarizer phase I project and equipment funds.
27. Long-term loan
（1）Long-term loans classifications
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-Beginning balance|
|Credit Loan|200,000,000.00|200,000,000.00|
|Total|200,000,000.00|200,000,000.00|

 As regards long-term loans classifications:
Long-term loans are classified byloans.。The long-term loans at the end of period are the loans enxtended to the Company by Pingan Bank. Shenzhen Jiangsu Building Branch. entrusted by Shenzhen Shenchao Technology Investment Co., Ltd.. No long-term loans were formed due to the extension of overdue loans.
（2）The top five of long-term loans
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Year-end balance||Year-beginning balance||
||Loans|Loans ending||Interest rate|Amount of|Amount of|Amount of|Amount of|
|Loan unit|||Currency||||||
||starting date|date||(%)|Foreign|RMB|Foreign|RMB|
||||||currency||currency||
|Pingan Bank.|||||||||
||November 3,|January 24,||||40,000,000.0||40,000,000.0|
|Shenzhen|||CNY|4.55%|||||
|Jiangsu|2011|2018||||0||0|
|Building|||||||||
|Branch.|||||||||
|Pingan Bank.|||||||||
||November 3,|January 24,||||40,000,000.0||40,000,000.0|
|Shenzhen|||CNY|4.55%|||||
|Jiangsu|2011|2018||||0||0|
|Building|||||||||
|Branch.|||||||||
|Pingan Bank.|||||||||
||November 3,|January 24,||||23,280,991.7||23,280,991.7|
|Shenzhen|||CNY|4.55%|||||
|Jiangsu|2011|2018||||0||0|
|Building|||||||||
|Branch.|||||||||
|Pingan Bank.|||||||||
||November|||||21,225,294.0||21,225,294.0|
|Shenzhen||June 24, 2015|CNY|4.55%|||||
|Jiangsu|25,2010|||||0||0|
|Building|||||||||
|Branch.|||||||||
|Pingan Bank.|||||||||
|||||||21,047,897.9||21,047,897.9|
|Shenzhen|July 14,2010|June 24,2015|CNY|4.55%|||||
|Jiangsu||||||6||6|
|Building|||||||||
|Branch.|||||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||145,554,183.||145,554,183.|
|Total|--|--|--|--|--||--||
|||||||66||66|

 28.Other Non-current liabilities
In RMB
||||
|-|-|-|
|Items|Year-end Book balance|Year-beginning Book balance|
|Deferred profits|||
||61,095,698.93|51,593,141.94|
|Total|61,095,698.93|51,593,141.94|

Statement on other non-current liabilities
（1）According to the "Notice on National Development and Reform Commission to the General Office of the textile project management of the special funds" (Faigaiban[2006]2841), on December 2006, the Company received "Textile special" funds RMB 2,000,000.00 from Shenzhen Finance Bureau. The company will use 14 years as asset depreciation period for amortization with the corresponding equipment in current period. the ending balance of uncompleted amortization is RMB 1,285,714.30 ;
(2) According to the document of Shenzhen Municipal Development and Reform Commission【2009】 No. 416 that "The Notice On issued the Governmental Investment Plan in 2009 on Zhong Ke New Industrial Internet Security Audit System and Other High-tech Industrialization Demonstration Project and the Public Testing and Consultation Service of Information Security Industry and other National High-tech Industrial Base Platform Projects”, on May 2009, the company received the Shenzhen Municipal Development and Reform Commission high-tech industrialization demonstration project supporting Capital RMB 2 million allocated by Shenzhen City Bureau of Finance for the construction of “The Project of the Construction Line of Polaripiece for TFT-LCD”.Our company will use 10 years as asset depreciation period for amortization in current period. The non-operating income in current period is RMB 100,000.00 and the balance amount of unfinished final amortization is RMB 1,100,000.00;
(3) According to the document of the Office of the State Development and Reform Commission on "The Office of the State Development and Reform Commission on the Reply of New Flat-Panel Display Industrialization Special Project” (Development and Reform OfficeHigh-Tech【2008】No. 2104), the company obtained the state subsidies RMB 10,000,000.00 from the State Development and Reform Commission New Flat-Panel Display Industrialization Special Project for the construction of “The Project of Polaripiece Industrialization for TFT- LCD”. On June 2009, December 2009 and April 2010, the company received the special subsidies of State Development and Reform Commission RMB 1,000,000.00. Our company will use 10 years as asset depreciation period for amortization. The non-operating income in current period is RMB 500,000.00, the balance amount of unfinished final amortization is RMB 5,500,000.00;
（4）On December 2009 ,June 2011 and February 2013, the Company received a loan interest discount funds of RMB 992,000.00, RMB 850,000.00 and RMB 483,000.00 allocated by Shenzhen Bureau of Finance for phase-II alteration project. Our company will use 10 years as asset depreciation period for amortization in current period.The non-operating income in current period is RMB 120,972.24 and the balance amount of unfinished final
amortization is RMB 1,330,694.28;
（5）The Company receivedR&D subsidy of RMB39,549,900.00 from the government according to Shen Cai
Jian (2010) No. 101 Document - Circular of Plan for Use of Special Funds for the 14th Group of Significant High- tech Projects in 2010. The Company plans to invest these funds inR&D in five years from 2011. The non- operating income in current period is RMB 3,954,990.00 and the balance amount of unfinished final amortization is RMB 11,864,970.00;
（6）In accordance with the Notice of Forwarding the Reply of General Office of State Development and Reform Commission Regarding Special Plan for Strategic Transformation and Industrialization of Color TV Industry issued by Shenzhen Development and Reform Commission (Shen Fa Gai (2011) No. 823), State Development and Reform Commission approved including the project of industrialization of polarizer sheet for TFT-LCD of Shengbo Optoelectronic Company into the special plan for strategic transformation and industrialization of color TV industry in 2010 and appropriated national aid of RMB 10,000,000.00 to Shengbo Optoelectronic Company for the research and development in the process of the project of industrialization and the purchase of required software and hardware equipment. On June 2012 and September 2013, the company received the national grants of RMB 10,000,000.00.. According to the Notice of Issuing the Governmental Investment Plan for 2011 Regarding Demonstration Project of High-tech Industrialization Including Specialized Services Such As Disaster Recovery of Financial Information System issued by Shenzhen Development and Reform Commission (Shen Fa Gai (2012) No. 3), the Company received subsidy of RMB 3,000,000.00 for the project of industrialization of polarizer sheet for TFT-LCD in April 2012. Our company will use 10 years as asset depreciation period for amortization in current period.The non-operating income in current period is RMB649,999.98 and the balance amount of unfinished final amortization is RMB10,183,333.36;
（7）According to the Notice about the Plan for Supporting the Second Group of Enterprises in Biological, Internet, New Energy and New Material Industries with Special Development Funds (Shen Fa Gai (2011) No. 1782), the Company received subsidy of RMB 5,000,000.00 for the narrow-width line (line 5) of phase-I project of polarizer sheet for TFT-LCD on February 2012. The Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets. The non-operating income in current period is RMB250,000.00 and the balance amount of unfinished final amortization is RMB4,250,000.00;
（8）On October 2013, The company received the grants for the purchase of imported equipment and technology in 2012 of RMB 1,750,902.00, the Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets.The non-operating income in current period is RMB65,361.79 and the balance amount of unfinished final amortization is RMB1,487,105.99;
（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 balance amount of unfinished final amortization is RMB450,000.00;
（10）In December 2013,The company has received the innovation funds of RMB500,000.00 (the supporting and funding category) from Shenzhen Polaroid Material and Technical Engineering Laboratory of Shenzhen Pingshan New District Development and Finance Bureau. Also, the company shall allocate and transfer the deferred income into the profit or loss in the current period based on the depreciation limit from the date of the expected usable status achieved for the relevant assets.
（11）According to the Approval of Application of Shenzhen Shengbo Optoelectronic Technology Co., Ltd. for
Project Funds for Shenzhen Polarization Material and Technology Engineering Laboratory (Shen Fa Gai (2012) No. 1385), Shenzhen Polarization Material and Technology Engineering Laboratory was approved to be established on the strength of Shengbo Optoelectronic with total project investment of RMB 24,390,000.00. As approved by Shenzhen Municipal People's Government, this project was included in the plan for supporting the fourth group of enterprises with special fund for the development of strategic new industries in Shenzhen in 2012 (new material industry). According to the Notice of Issuing the Plan for Supporting the Fourth Group of Enterprises with Special Fund for Development of Strategic New Industries in Shenzhen in 2012 (Shen Fa Gai (2012) No. 1241), the Company received subsidy of RMB 5,000,000.00 on December 2012 for purchasing instruments and equipment and improving existing technological equipment and test conditions. The fund gap will be filled by the Company through raising funds by itself. The subsidy will be amortized over the depreciation period from the day when relevant assets get ready for intended use;
（12）According to the “Announcement on the Identification of Technology Centers of 24 Enterprises including Shenzhen Yuanwanggu Information Technology Joint Stock Company Limited as the Municipal Research and Development Centers (Technical Center)” (SJMXXJS[2013] No.137), the research and development center of Shenzhen SAPO Photoelectric Co., Ltd. has been regarded as 2012 annual municipalR&D center. In December 2013, the company has received the funding subsidy of RMB3 million for the construction of the technical center. Also, the company shall allocate and transfer the deferred income into the profit or loss in the current period based on the depreciation limit from the date of the expected usable status achieved for the relevant assets.
(13)On March 2014 the company received the introduction of advanced technology import subsidy funds of RMB 143,881 from Shenzhen Finance Committee, the project has not been accepted.
(14)On April 2014, the company received RMB 15,000,000.00funds for equipment purchase for TFT-
LCD polarizing film phase IIproject from Shenzhen Finance Committee. When the company self-
related assets reach its intended using day, the deferred revenue sharing would be transferred to profit or loss in c urrent period base on depreciation period .
Item of liability with government subsidy concerned
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount reckoned||||
|||Subsidy||||Assets-|
||Balance in year-||into non-operation||Balance in||
|Items||increase during||Other chinges||related/income-|
||begin||revenue in the||year-end||
|||this period||||related|
||||period||||
|Textile special funds|1,285,714.30||||1,285,714.30|Related to assets|
|High-tech|||||||
|Industrialization|||||||
||1,200,000.00||100,000.00||1,100,000.00|Related to assets|
|demonstration|||||||
|projects|||||||
|National grant|||||||
|fundsfor new flat|||||||
||6,000,000.00||500,000.00||5,500,000.00|Related to assets|
|panel display|||||||
|industry|||||||
|Borrowing discount|1,451,666.52||120,972.24||1,330,694.28|Related to assets|

|||||||
|-|-|-|-|-|-|
|Government R & D||||||
||15,819,960.00||3,954,990.00|11,864,970.00|Related to profit|
|subsidies||||||
|Grant funds for TFT-||||||
|LCD polarizer|10,833,333.34||649,999.98|10,183,333.36|Related to assets|
|industry project||||||
|Grant funds for TFT-||||||
|LCD polarizer||||||
||4,500,000.00||250,000.00|4,250,000.00|Related to assets|
|narrow line (line 5)||||||
|project||||||
|Purchase of||||||
|importedequipment|1,552,467.78||65,361.79|1,487,105.99|Related to assets|
|and technology||||||
|Innovation and||||||
|venture capital for||||||
||450,000.00|||450,000.00|Related to assets|
|TFT-LCD polarier||||||
|project||||||
|Shenzzhen||||||
|Engineering||||||
|laboratory polarizing|500,000.00|||500,000.00|Related to assets|
|material and technical||||||
|engineeting||||||
|Shenzhen||||||
|polarizingmaterial||||||
||5,000,000.00|||5,000,000.00|Related to assets|
|and technical||||||
|engineering||||||
|Capital funding for||||||
||3,000,000.00|||3,000,000.00|Related to assets|
|Technology Center||||||
|Subsidy funds to supp||||||
|ort the introduction of||143,881.00||143,881.00|Related to assets|
|advanced technology||||||
|Funds to purchase eq||||||
|uipment of TFT-||||||
|||15,000,000.00||15,000,000.00|Related to assets|
|LCD polarizing film||||||
|project phase II||||||
|Total|51,593,141.94|15,143,881.00|5,641,324.01|61,095,698.93|--|

29. Stocks capital
In RMB
||||
|-|-|-|
|Balance in|Changed（+，-）|Balance in|

|||||||||
|-|-|-|-|-|-|-|-|
||year-begin|||Capitalization|||year-end|
|||Issuance of||||||
||||Bonus shares|of public|Other|Subtotal||
|||new share||||||
|||||reserve||||
|Total of capital|506,521,849.00||||||506,521,849.00|
|shares||||||||

30. Capital reserves
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginning balance|Increase in the current|Decrease in the current|Year-end balance|
|||period|period||
|Share premium|1,574,407,414.34|||1,574,407,414.34|
|Other|32,117,755.08|3,796,116.14|15,105,465.14|20,808,406.08|
|Total|1,606,525,169.42|3,796,116.14|15,105,465.14|1,595,215,820.42|

 Statement on capitalreserves：
The increase of other capital surplus is the net amount of change of fair value of financial assets available for sale held by the Company in the report year after deduction of recognized deferred income tax liabilities. The decrease of other capital surplus is due to the outward transfer of the change of fair value originally accounted for as capital surplus after sales of financial assets available for sale.
31. Surplus reserve
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginning balance|Increase in the current|Decrease in the current|Year-end balance|
|||period|period||
|Statutory surplus reserve|||||
||59,801,735.10|||59,801,735.10|
|Total|59,801,735.10|||59,801,735.10|

32. Retained profits
In RMB
||||
|-|-|-|
|||Extraction or distribution of the|
|Items|Amount||
|||proportion|
|Before adjustments: Retained profits at the|||
||124,997,823.59|--|
|period end|||
|After adjustments: Retained profits at the period|124,997,823.59||
|||--|
|beginning|||

||||
|-|-|-|
|Add：Net profit belonging to the owner of the|||
||-21,644,510.10|--|
|parent company|||
|Retained profits at the period end|103,353,313.49|--|

As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 . (4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
33. Business income, Business cost
（1）Business income, Business cost
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Income from Business income|469,646,627.85|574,519,173.10|
|Other Business income|1,977,196.96|1,828,836.96|
|Total|434,138,124.26|527,913,970.56|

（2）Mainbusiness（Industry）
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Name|||||
||Business income|Business cost|Business income|Business cost|
|Domestic and foreign trade|158,919,558.30|158,041,576.68|231,978,740.01|230,103,752.45|
|Manufacturing|268,218,570.16|262,502,326.32|300,083,729.57|284,719,485.05|
|Property management, leasing|42,508,499.39|11,661,028.64|42,456,703.52|11,261,896.10|
|Total|469,646,627.85|432,204,931.64|574,519,173.10|526,085,133.60|

（3）Mainbusiness（Production）
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Name|||||
||Business income|Business cost|Business income|Business cost|
|Property and rental income|42,508,499.39|11,661,028.64|42,456,703.52|11,261,896.10|

||||||
|-|-|-|-|-|
|Textile income|10,804,712.03|9,549,593.59|10,150,142.39|8,055,670.24|
|Polaroid income|257,413,858.13|252,952,732.73|289,933,587.18|276,663,814.81|
|Trade income|158,919,558.30|158,041,576.68|231,978,740.01|230,103,752.45|
|Total|469,646,627.85|432,204,931.64|574,519,173.10|526,085,133.60|

（4）MainBusiness（Area）
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Name|||||
||Business income|Business cost|Business income|Business cost|
|Domestic|189,871,009.40|140,472,543.68|153,551,297.76|106,912,591.58|
|Oversea|279,775,618.45|291,732,387.96|420,967,875.34|419,172,542.02|
|Total|469,646,627.85|432,204,931.64|574,519,173.10|526,085,133.60|

（5）Operating income from top five clients
In RMB
||||
|-|-|-|
|Name|Business Income|Proportion(%)|
|Client 1|158,294,543.30|33.56%|
|Client 2|70,725,854.49|15.00%|
|Client 3|21,228,951.42|4.50%|
|Client 4|13,421,472.00|2.85%|
|Client 5|13,134,261.24|2.78%|
|Total|276,805,082.45|58.69%|

 34. Business tax and subjoin
In RMB
|||||
|-|-|-|-|
|Items||Same period of the|Standard|
||Report period|previous year||
|Business tax||||
||2,353,361.25|2,415,244.05||
|Urban construction tax||||
||176,137.63|207,575.29||
|Education surcharge||||
||125,812.42|201,206.64||
|House tax||||
||895,622.52|1,467,127.34||
|Other||||
||33,207.92|272,303.36||
|Total|3,584,141.74|4,563,456.68||
||||--|

35. Sales expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage|1,348,613.40|1,088,745.06|
|Welfare|81,776.38|49,887.42|
|Exhibition fee|231,813.33|81,001.00|
|Office expenses|15,889.54|12,788.40|
|Travel expenses|197,026.14|179,468.78|
|Business entertainment|385,513.00|364,060.13|
|Automobile fee|57,992.29|57,093.35|
|Transportation changes|1,683,806.33|1,193,012.10|
|Sales expenses|924,962.64|802,280.38|
|Other|174,108.99|268,389.58|
|Total|5,101,502.04|4,096,726.20|

 36. Administrative expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage|10,967,426.55|11,281,015.87|
|Welfare|1,155,557.04|1,309,770.93|
|Union funds|322,344.47|330,465.48|
|Employee education expenses|507,888.41|181,390.76|
|Housing fund|968,324.34|1,015,456.05|
|Social security|2,286,831.11|1,903,677.54|
|Labor protection costs|91,076.00|149,772.70|
|Tax|728,324.32|606,701.71|
|Insurance expenses|170,669.59|222,968.86|
|Depreciation of fixed assets|2,498,882.22|2,540,541.61|
|Amortization of intangible assets|1,144,192.04|1,142,195.16|
|Amortization of long-term deferred|||
||70,090.82|34,490.82|
|expenses|||
|Traffic fee|415,775.98|569,461.95|
|Office expenses|894,222.62|1,220,878.19|
|Postal fees|377,293.29|331,497.44|

||||
|-|-|-|
|R& D costs|36,362,478.26|45,107,185.59|
|Repairs fees|199,501.61|334,968.20|
|Water and electricity|374,199.89|354,467.97|
|Auto expenses|294,312.89|416,861.90|
|Travel Expenses|533,424.37|439,430.63|
|Audit expenses|1,268,189.47|2,107,024.15|
|Entertainment expenses|887,353.84|966,110.60|
|Low consumables amortization|141,282.50|97,252.30|
|Transport fees|419,530.36|373,783.60|
|Other|1,585,529.54|2,676,482.62|
|Total|64,664,701.53|75,713,852.63|

 37. Financial Expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Interest expenses|4,983,644.27|5,172,249.94|
|Interest income|-14,736,625.14|-7,399,019.07|
|Exchange loss|2,676,839.12|-12,010,728.31|
|Fees and other|243,521.07|308,249.87|
|Total|-6,832,620.68|-13,929,247.57|

 38. Investment income
（1）Investment income
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Incomes from disposal of Long-term cost|||
||2,487,818.57|2,017,830.85|
|investment|||
|Incomes from disposal of long-term equity|||
||541,081.40|421,730.17|
|investment|||
|Investment income from financial assets sales|16,994,763.49|19,468,746.45|
|Total|20,023,663.46|21,908,307.47|

（2）Long-term equity investment income by costing
In RMB
|||||
|-|-|-|-|
||Amount of current period|Amount of previous||
|Name|||Reason to increase or decrease|
|||period||

|||||
|-|-|-|-|
|Shenzhen Dailishi Underwear Co., Ltd.|396,875.00|400,000.00||
|Anhui Huapeng Textile Co., Ltd.|900,000.00|900,000.00||
|Shenzhen Xinfang Knitting Co., Ltd.|112,000.00|80,000.00||
|Shenzhen Tongyi Silk Co., Ltd.|657,113.57|637,830.85||
|Hongkong Yehui International Co., Ltd.|421,830.00|||
|Total|2,487,818.57|2,017,830.85|--|

（3）Long term equity investment confirmed by equity ethodinclude：
In RMB
|||||
|-|-|-|-|
|Name|Amount of current period|Amount of previous|Reason to increase or decrease|
|||period||
|Shenzhen Haohao Property Leasing||||
||262,829.16|275,108.09||
|Co., Ltd.||||
|Shenzhen Xieli Automobile Co., Ltd.|143,689.17|181,327.70||
|Shenzhen Changlianfa Printing and||||
||14,603.39|-34,079.89||
|dyeing Company||||
|Jordan Garment Factory|119,959.68|-625.73||
|Total|541,081.40|421,730.17|--|

Statement on investment gains, please state whether or not there are material constrains on retrieving of
investment gains.
In the report period, the company has no big restriction on the investment earning repatriation.
39. Loss of assets impairment
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|I .Losses for bad debts|-4,765,132.13|2,280,892.48|
|II. Losses for falling price of inventory|9,959,463.92|4,304,661.60|
|Total|5,194,331.79|6,585,554.08|

 40. Non-operating income
（1）Non-operating income
In RMB
|||||
|-|-|-|-|
||Amount of current period|Amount of previous period|The amount of non-|
|Items||||
||||operating gains & lossed|
|Total income from liquidation of non-||||
||52,776.17||52,776.17|
|current assets||||

|||||
|-|-|-|-|
|Including：Income from liquidation of||||
||52,776.17||52,776.17|
|fixed asset||||
|Government Subsidy|5,693,784.01|5,645,436.24|5,693,784.01|
|Other income|196,599.56|331,182.75|196,599.56|
|Total|5,943,159.74|5,976,618.99|5,943,159.74|

（2）Government subsidy rec koned into current gains/losses
In RMB
||||||
|-|-|-|-|-|
||||Assets-related/income -|Non-recurring|
|Items|Amount of this period|Amount of last period|||
||||related|gains/losses(Y/N)|
|Amortization of|||||
|government research and|3,954,990.00|3,954,990.00|Related to assets|Yes|
|development grants|||||
|Amortization of high-|||||
|tech industrialization|||||
||100,000.00|100,000.00|Related to assets|Yes|
|demonstration project|||||
|matching funds|||||
|New-style|||||
|industrialization of flat|||||
|panel display|||||
||500,000.00|500,000.00|Related to assets|Yes|
|amortization of State|||||
|subsidy funds for special|||||
|projects|||||
|Shenzhen municipal|||||
|financial transfer loan|120,972.24|96,822.24|Related to assets|Yes|
|amortization of discount|||||
|Futian district industrial|||||
|development special fund|32,000.00|101,400.00|Related to profit|Yes|
|subsidies|||||
|Amortization of grant|||||
|funds for phase-I Narrow|||||
||250,000.00|240,000.00|Related to assets|Yes|
|line project of polarizer|||||
|for TFT-LCD TFT-LCD|||||
|Special subsidy and|||||
|booth subsidy for the|||||
|development of small|20,460.00|52,224.00|Related to profit|Yes|
|and medium enterprises|||||
|in Shenzhen|||||
|Amortization of subsidy|649,999.98|600,000.00|Related to assets|Yes|

||||||
|-|-|-|-|-|
|for the industrialization|||||
|project of polarizer for|||||
|TFT-LCD|||||
|Amortization of purchase|||||
|of imported equipment|65,361.7|9|Related to assets|Yes|
|and technology grants|||||
|Total|5,693,784.0|1 5,645,436.24|--|--|

41. Non-Operation expense
In RMB
|||||
|-|-|-|-|
||Amount of current period|Amount of previous|The amount of non-|
|Items||||
|||period|operating gains & lossed|
|Total of non-current asset Disposition loss|3,638.02||3,638.02|
|Including: Disposition loss of Fixed assets|3,638.02||3,638.02|
|Donation expenses||10,000.00||
|Other|113.60||113.60|
|Total|3,751.62|10,000.00|3,751.62|

 42. Income tax expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|The current income tax calculated by the tax law and|||
||9,458,456.41|8,344,328.75|
|the relevant regulations|||
|Adjustment of Deferred income tax|3,922,769.40|-1,024,440.55|
|Total|13,381,225.81|7,319,888.20|

 43. Calculation of Basic earnings per share and Diluted earnings per share
（1）Calculating formula of income per share:
Basic earnings pershare=P/（S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0-Sk）
Dilute earning pershare=P1/(S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ common stock weighted average of subscription warrant, stock option, transferable bond))
（2）Calculating process of income per share
Basic earnings per share belonging to common stock shareholder in the first half of2014=- 21,644,510.10/506,521,849= -0.04 RMB/Share
Basic earnings per share belonging to common stock shareholder deducted non-recurring gains and losses in the first half of2014=-40,297,886.93/506,521,849= -0.08 RMB/Share
Dilute earning per share belonging to common stock shareholder in the first half of2014=- 21,644,510.10/506,521,849= -0.04 RMB/Share
Dilute earning per share belonging to common stock shareholder deducted non-recurring gains and losses in
the first half of2014=-40,297,886.93/506,521,849= -0.08 RMB/Share
44. Other comprehensive income
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|1.Loss amount produced by sellable financial assets|1,863,552.00|11,992,591.42|
|Less：Deduct: income tax infection produced by sellable|||
||465,888.00|2,998,147.86|
|financial assets|||
|Net amount transferred into profit and loss at current period|||
|that reckoned into other comprehensive income at former|12,707,013.00|10,525,804.39|
|period|||
|Subtotal|-11,309,349.00|-1,531,360.83|
|Total|-11,309,349.00|-1,531,360.83|

 45. Notes Cash flow statement
1. Other cash received from business operation
In RMB
|||
|-|-|
|Items|Amount|
|Government Subsidy|15,143,881.00|
|Bank deposit interest income and other|18,236,358.99|
|Total|33,380,239.99|

 Notes
2.Other cash paid for business activities
In RMB
|||
|-|-|
|Items|Amount|
|Research & development expenses|2,552,672.99|
|Office expenses|910,112.16|
|Business hospitality|1,272,866.84|
|Transportation expnses|415,775.98|
|Travel fee|730,450.51|
|Transporation expenses|2,103,336.69|
|Agency Fee|1,268,189.47|
|Post and Communication fee|377,293.29|
|Insurance premium|170,669.59|
|Water and electricity fee|374,199.89|
|Repair feee|199,501.61|

|||
|-|-|
|Exhibition expenses|231,813.33|
|Other|3,154,685.87|
|Total|13,761,568.22|

 .3. Cash received related to other investment activities
In RMB
|||
|-|-|
|Items|Amount|
|Structure deposit and income|102,522,651.09|
|Total|102,522,651.09|

 4.Cash paid related to other investment activities
In RMB
|||
|-|-|
|Items|Amount|
|Deposited in the fixed deposit account|500,000.00|
|Total|500,000.00|

 46. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
||||
|-|-|-|
|Supplement Information|Amount of current period|Amount of previous period|
|I. Adjusting net profit to cash flow from operating activities|--|--|
|Net profit|-21,644,510.10|-8,041,264.26|
|Add: Impairment loss provision of assets|5,194,331.79|6,585,554.08|
|Depreciation of fixed assets, oil and gas assets and|||
||39,229,163.04|38,988,535.82|
|consumable biological assets|||
||1,144,192.04|1,167,317.88|
|Amortization of intangible assets|||
|Amortization of Long-term deferred expenses|265,693.02|255,514.63|
||3,638.02||
|Loss from Fixed assets Discard|||
||4,983,644.27|5,172,249.94|
|Financial cost|||
||-20,023,663.46|-21,908,307.47|
|Loss on investment|||
||3,922,769.40|-461,268.55|
|Decrease of deferred income tax assets|||
||-56,153,854.51|888,213.05|
|Increased of deferred income tax liabilities|||
||-22,608,337.57|-68,579,593.06|
|Decrease of inventories|||
||-55,907,289.43|-61,865,097.34|
|Decease of operating receivables|||
||31,044,959.16|50,846,462.75|
|Increased of operating Payable|||
|Net cash flows arising from operating activities|-90,549,264.33|-56,951,682.53|

||||
|-|-|-|
|II. Significant investment and financing activities that|||
||--|--|
|without cash flows:|||
|III. Net Change of cash and cash equivalents|--|--|
||1,052,128,739.88|739,281,617.95|
|Ending balance of cash|||
||943,913,951.68|227,189,754.43|
|Less: Beginning balance of cash equivalents|||
||108,214,788.20|512,091,863.52|
|Net increase of cash and cash equivalents|||

 (2) Relevant information about obtaining/disposal of subsidiary and other business unit in report period
In RMB
||||
|-|-|-|
|Supplementary information|Amount of this period|Amount of last period|
|1. Relevant information about obtaining subsidiary and|||
||--|--|
|other business units|||
|II.Relevant information about disposal of subsidiary|||
||--|--|
|andother business units|||
|2．Disposal of the cash and cash equivalents of subsidiarie|||
||100,386,000.00||
|s and other business units|||
|3．Disposal of net cash from subsidiaries and other busines|100,386,000.00||
|s units|||

（3）Composition of cash and cash equivalents
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|I. Cash|1,052,128,739.88|943,913,951.68|
|Of which: Cash in stock|74,347.00|85,537.12|
|Bank savings could be used at any time|1,051,628,136.83|941,362,518.21|
|Other monetary capital could be used at any time|426,256.05|2,465,896.35|
|III. Balance of cash and cash equivalents at the period end|1,052,128,739.88|943,913,951.68|

 VIII. Related parties and related-party transactions
1. Parent company information of the enterprise
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||The parent||The||
|||||||||The parentcompanyof theCompany’s vote ratio|||
||||||||company||ultimate||
|||||Legal||||||Organizati|
||Related||Registered|||Registered|of the||controlling||
|Name||Type||representat|Nature|||||on Code|
||parties||address|||capital|Company's||party of||
|||||ive|||||||
||||||||shareholdi||the||
||||||||ng ratio||Company||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|ShenzhenInvestmentsHoldingsrCo.,Ltd.||State-|Shenzhen||||||State-||
|||owned|||||||owned||
|||enterprise|||||||Assets||
|||||||RMB|||Supervisio||
||Controling||||||||||
|||||Fan||10925.990|||n and|76756642-|
||hareholde||||Investment||46.21%|49.39%|||
|||||Mingchun||674|||Administr|a1|
|||||||milliobn|||tion||
||||||||||Commissi||
||||||||||on of||
||||||||||Shenzhen||

Parent company information of the company
The company is authorized and approved to be state-owned independent company by Shenzhen Government, and it Executes financial contributor function on state-owned enterprise within authorization scope.
2.Particulars of the subsidiaries
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||The|||
|||||||||The||
||||||||subsidiaries|||
|||||Legal||||subsidiaries|Organizatio|
||Related||Registered|||Registered|of the|||
|Name||Type||representati|Nature|||of the|n Code|
||parties||address|||capital|Company's|||
|||||ve||||Company’s||
||||||||shareholdin|||
|||||||||vote ratio||
||||||||g ratio|||
||||||Domestic|||||
|Shenzhen||||||||||
||wholly|Limited||||2,360,000.0||||
|Lisi|||Shenzhen|Zhu Meizhu|commerce,||100.00%|100.00%|192180180|
|Industrial|owned|Liability|||materials|0||||
||subsidiary|Company|||supply and|||||
|Co., Ltd.||||||||||
||||||sales|||||
||||||Accommod|||||
|Shenzhen|wholly|Limited||||10,005,300.||||
||||Shenzhen|Zhu Jun|ation,||100.00%|100.00%|19223330X|
|Huaqiang|owned|Liability|||restaurants,|00||||
|Hotel|subsidiary|Company|||business|||||
||||||center;|||||
|Shenfang||||||||||
||wholly|Limited||Zhang|Property|1,600,000.0||||
|Property|||Shenzhen||||100.00%|100.00%|192225051|
|Managemen|owned|Liability||Hong|Managemen|0||||
||subsidiary|Company|||t|||||
|t Co., Ltd.||||||||||
||||||Production|||||
|Shenzhen||||||||||
|Beauty|wholly|Limited|Shenzhen|Zhang|of fullyelectronic|25,000,000.|100.00%|100.00%|741231236|
|Century|owned|Liability||Hong|jacquard|00||||
|Garment|subsidiary|Company||||||||
|Co., Ltd.|||||knitting|||||
||||||whole shape|||||
|Shenzhen||||||||||
|Shenfang|wholly|Limited|Shenzhen|Zhang|Operatingimport and|5,000,000.0|100.00%|100.00%|728563236|
|Import &|owned|Liability||Hong|export|0||||
|export Co.,|subsidiary|Company||||||||
|Ltd.|||||business|||||
|Shenzhen||||||||||
||wholly|Limited||||300,000,000||||
||||||Operating|||||
||||Shenzhen|Zhu Jun|||100.00%|100.00%|618877007|
|Shengbo||||||||||
||owned|Liability||||.00||||
|Ophotoelect|||||import and|||||
||subsidiary|Company||||||||
|ric|||||export|||||

|||||||||
|-|-|-|-|-|-|-|-|
|Technology||||business||||
|Co., Ltd||||||||
||Wholly|||||||
|Shengtou||||Production||||
||||Zhumeizhu,|||||
||owned|Hongkong|||HKD10000|100.00%|100.00%|
|（ HK ）||||and sales of||||
||Grandson||Liu Honglei|||||
|Co., Ltd.||||polarizer||||
||Company|||||||

3. Joint-venture and affiliated enterprises information of the company
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Legal|||Share||||
|Invested|Enterprise|Registration||Business|Registered||vote right|Affiliation|Organizatio|
||||representati|||holding||||
|unit name|type|Place||character|capital||ratio(%)|relation|n code|
||||ve|||ratio(%)||||
|I. Joint enterprise||||||||||
|Shenzhen||||||||||
|Haohao||||||||||
||||||HKD10|||Joint||
|Property||Shenzhen|Feng Junbin|Service||50.00%|50.00%||61881295-9|
||||||milllion|||enterprise||
|Leasing|Limited|||||||||
|Co., Ltd.|Company|||||||||
|Shenzhen||||||||||
|Xieli||||Manufacturi|RMB|||Joint||
|||Shenzhen|Ye Yongling|||50.00%|50.00%||618801838|
|Automobile|Limited|||ng|3.12million|||enterprise||
|Co., Ltd|Company|||||||||
|II. Affiliated enterprise||||||||||
|Shenzhen||||||||||
|Changlianfa|||||RMB|||||
|||||||||Affiliated||
|Printing and||Shenzhen|Zhu Meizhu|Serivice|6.47millio|40.25%|40.25%||618865073|
|||||||||enterprise||
|dyeing Co.,|Limited||||n|||||
|Ltd.|Company|||||||||
|Jordan||Jordan||||||||
||||Chen|Manufacturi|USD1|||Affiliated||
|Garment|Limited|||||35.00%|35.00%|||
||||Wenxian|ng|million|||enterprise||
|Factory|Company|||||||||
|Hengshun||Saipan||||||||
|(Saipan)||||Manufacturi|USD6.96|||Affiliated||
||||---|||35.00%|35.00%|||
|Industry|Limited|||ng|million|||enterprise||
|Co., Ltd.|Company|||||||||

4.Other Related parties information of the enterprise
||||
|-|-|-|
|Other Related parties name|Relation of other Related parties with the||
|||Organization code|
||company||
|Shenzhen Shenchao Technology|||
||Subject to the same party controls||
|Investment Co., Ltd.|||
|Shenzhen Tianma Microelectronics Co.,|The Company director and general||
|Ltd.|manager is the company director||

|||
|-|-|
|Shenzhen Xiangjiang Trade Co., Ltd.|Sharing Company|
|Shenzhen Xinfang Knitting Co., Ltd.|Sharing Company|
|Shenzhen Dailishi Underwear Co., Ltd.|Sharing Company|
|Anhui Huapeng Textile Co., Ltd.|Sharing Company|

5. Related transactions.
（1）Statement of commodity purchased and labor service received
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount in current period||Amount in last period||
||Content of related|Pricing principle of|||||
|Related parties||||Proportio||Proportio|
||transaction|related transactions|Amount||Amount||
|||||n（%）||n（%）|
|None|||||||

Statement of commodity sales and labor service provided
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount in current period||Amount in last period||
||Content of related|Pricing principle of|||||
|Related parties||||Proportio||Proportio|
||transaction|related transactions|Amount||Amount||
|||||n（%）||n（%）|
|Shenzhen Tianma|||||||
|Microelectronics|Sales polarizer sheet|Agreement price|1,792,448.90|0.56%|2,065,075.16|0.69%|
|Co., Ltd.|||||||

（2）Other related transfernce
For the construction of the project of polarizer for TFT-LCD, the Company signed Entrusted Loan Contract with Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Jiangsu Building Sub-branch of Shenzhen Development Bank Co., Ltd. in 2010. According to the contract, Shenzhen Shenchao Technology Investment Co., Ltd. entrusted Shenzhen Jiangsu Building Sub-branch of Shenzhen Development Bank Co., Ltd. to extend a loan of RMB 200 million to the Company. The term of the loan is 108 months from the day when the first installment of entrusted loan is transferred to the account of the Company. The interest rate of the entrusted loan is the rate of commercial loans with a term of 5 years quoted by People's Bank of China minus2%. 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. As of June 30, 2014, The Company actually received a loan of RMB 200 million.
6. Payables and receivables of the related party
Listed company related party fund
In RMB
|||||
|-|-|-|-|
|Name|Related party|Amount at year end|Amount at year beginning|

|||||||
|-|-|-|-|-|-|
|||Balance of Book|Bad debt Provision|Balance of Book|Bad debt Provision|
||Shenzhen Tianma|||||
|Account receivable|Microelectronics Co.,|1,039,958.56|51,997.93|887,896.60|44,394.83|
||Ltd.|||||
||Shenzhen Dailishi|||||
|Other Account receivable||-534,331.98||256,373.58|12,818.68|
||Underwear Co., Ltd.|||||
||Anhui Huapeng|||||
|Other Account receivable||2,700,000.00|135,000.00|1,800,000.00|90,000.00|
||Textile Company|||||

The listed company Payables of the related party
In RMB
|||||
|-|-|-|-|
|Name|Related party|Amount at year end|Amount at year beginning|
||Shenzhen Xinfang Knitting|||
|Other payable||244,789.85|216,789.85|
||Co., Ltd.|||
||Shenzhen Xiangjiang Trade|||
|Other payable||40,000.00|40,000.00|
||Co., Ltd.|||
||Shenzhen Changlianfa|||
|Other payable||584,644.49|684,824.46|
||Printing and dyeing Co., Ltd.|||
||Shenzhen Hengsheng|||
|Other payable||1,367,940.67|1,367,940.67|
||Investment Co., Ltd.|||
||Shenzhen Haohao Property|||
|Other payable||3,129,489.85|3,353,868.07|
||Leasing Co., Ltd.|||
||Shenzhen Shenchao|||
|Interest payable|Technology Investment Co.,|28,546,181.29|23,970,903.52|
||Ltd.|||

IX. Subsequent events
1. Contingent liability and its financial influence formed by un-settle lawsuits or arbitration
During the reporting period, the company received the No.28 respondent notice issued by Shenzhen Intermediate People's Court (2014) Foreign legislation, the plaintiff association of Hong Kong Xieli Automobile Co., Ltd liability disputes has been formally accepted. The company as the first defendant, Shenzhen Xieli Automobile Co., Ltd. was the second defendant. The plaintiff requested: 1, the economic loss of tort liability by the total amount of RMB 31.8579 million; 2, the second defendant involved in joint liability of the amount of compensation; 3, the litigation fee paid by two co-defendants. Currently the case was in process, the company temporarily unable to determine the impact of the litigation on the company's profit in current or future period.
X. Commitment events.
1. Material commitments
N/A
2. Commitments made previously
N/A
XI. Post-balance-sheet events
1. Explanation on major event after balance sheet date
In RMB
|||
|-|-|
|Profits or dividends to be allocated|0.00|
|Profits or dividends announced to allocate after approval|0.00|

 XII. Other Important events
1. Non-monetary assets exchange
N/A
2. Debt reorganization
N/A
3. Enterprise combination
N/A
4. Leasing
N/A
5. Financial instrument issued outside and convertible to shares in report period
None
6. Assets and liability measured by fair value
In RMB
|||||||
|-|-|-|-|-|-|
|||Gains and losses|Accumulative|||
|||||Provision for||
||Amount at the|from change of fair|change of fair value||Amount at the end|
|Items||||impairment made in||
||beginning of period|value in current|accounted for as||of period|
|||||current period||
|||period|rights and interests|||
|Financial assets||||||
|3.Trading financial assets|41,829,021.22||-17,485,074.01||24,343,947.21|
|Subtotal of Financial||||||
||41,829,021.22||-17,485,074.01||24,343,947.21|
|assets||||||
|Total|41,829,021.22||-17,485,074.01||24,343,947.21|

||||
|-|-|-|
|Financial liability|0.00|0.00|

 XIII. Notes s of main items in financial reports of parent company
1.Other receivables
（1）Other receivables
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Year-end balance||||Year-beginning||||
||||||||Provision for bad||
||Book balance||Provision for bad debts||Book balance||||
||||||||debts||
|Classification|||||||||
|||Propo||Propo||Propo||Propo|
||Amount|rtion(|Amount|rtion(|Amount|rtion(|Amount|rtion(|
|||%)||%)||%)||%)|
|Other Receivables with|||||||||
|major individual amount and||14.20||100.0||||100.0|
||11,981,464.60||11,981,464.60||11,981,464.60|6.41%|11,981,464.60||
|bad debt provision provided||%||0%||||0%|
|individually|||||||||
|Other Receivables provided bad debt provision in groups|||||||||
|||85.43||||93.42|||
|Account age group|72,097,478.08||6,988,897.18|9.69%|174,647,803.08||12,116,413.43|6.94%|
|||%||||%|||
|||85.43||||93.42|||
|Subtotal of group|72,097,478.08||6,988,897.18|9.69%|174,647,803.08||12,116,413.43|6.94%|
|||%||||%|||
|Other Account receivable|||||||||
|with minor individual||||100.0||||100.0|
||311,486.35|0.37%|311,486.35||311,486.35|0.17%|311,486.35||
|amount but bad debt||||0%||||0%|
|provision is provided|||||||||
|Total|84,390,429.03|--|19,281,848.13|--|186,940,754.03|--|24,409,364.38|--|

 Category explanation of other accounts receivable:
Receivables with significant individual amount and provision made for individual item refers to customer accounts receivable with single amount more than 0.5 million, its provision for impairment will be made based on specific identification method. For receivables without significant individual amount, after deducting those parts which had conducted individual impairment test for its obvious difference in collectability with concrete evidence, making group by aging with character of credit risks and making provision for impairment based on aging analysis method. The receivables made provision for impairment without significant individual amount refers to those receivables which has obvious difference in collectability with concrete evidence, its provision will be made based on specific identification method.
Other receivable accounts with major amount but on which bad debt provisions are provided individually at end
of period
√Applicable□not Applicable
In RMB
||||||
|-|-|-|-|-|
|Name|Book balance|Bad debts|Provision proportion%|Reason of provision|
|Single amount|||||
||11,981,464.6|0 11,981,464.60|100.00%|Unable to recover|
|importance|||||
|Total|11,981,464.6|0 11,981,464.60|--|--|

Using age methods to provision for bad debts of account receivable ingroup：
√Applicable□not Applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
||Book Balance|||Book Balance||Provision for bad|
|Age|||Provision for bad||||
|||Proporti|||Proporti|debts|
||||debts||||
||Amount|on%||Amount|on%||
|Within 1 year|||||||
|Including：|--|--|--|--|--|--|
|Subtotal of|||||||
||64,506,048.58|89.47%|3,225,302.43|167,056,373.58|95.65%|8,352,818.68|
|Withn 1 year|||||||
|1-2 years|160,600.00|0.22%|48,180.00|160,600.00|0.09%|48,180.00|
|2-3 years|7,430,829.50|10.31%|3,715,414.75|7,430,829.50|4.26%|3,715,414.75|
|Over 3 years|43,800.00|0.06%|21,900.00|43,800.00|0.03%|21,900.00|
|3-4 years|7,377,029.50|10.23%|3,688,514.75|7,377,029.50|4.22%|3,688,514.75|
|Over 5 years|10,000.00|0.02%|5,000.00|10,000.00|0.01%|5,000.00|
|Total|||||||
||72,097,478.08|--|6,988,897.18|174,647,803.08|--|12,116,413.43|

 Using percentage balance method of provision for bad debts of other account receivable ingroup：
□Applicable√ Not applicable
Using other methods to provision for bad debts of other account receivable ingroup：
□Applicable√ Not applicable
Separate amount is not large, the account receivable with big combination risk after combined via risk character:√Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
|Content|Book balance|Provision for bad debts|Allotment rate|Reason|
|Single amount not|311,486.3|5 311,486.35|100.00%|Unable to recover|

||||||
|-|-|-|-|-|
|importance|||||
|Total|311,486.35|311,486.35|--|--|

（2）Switch back or regain of the other account receivable in the reporting period
In RMB
||||||
|-|-|-|-|-|
|||Basis for determinationof original bad debtreserve|Accumulated provision||
||Reason for reversal of||of bad debt reserve|Amounts reversed or|
|Contents|||||
||recovery||before reversal or|recovered|
||||recovery||
|None|||||

Provision for bad debt reserve for account receivable with sigle significant or minor amount but tested for impairment separately asatperiod-end
In RMB
||||||
|-|-|-|-|-|
|Contents of account|||||
||Book balance|Bad debt amount|Provision proportion(%)|Reason|
|receivables|||||
|Single amount|||||
||11,981,464.60|11,981,464.60|100.00%|Unable to recover|
|importance|||||
|Single amount not|||||
||311,486.35|311,486.35|100.00%|Unable to recover|
|importance|||||
|Total|12,292,950.95|12,292,950.95|--|--|

(3) Account receivables actually written-off during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
|Name of the|Nature of account|||Reason for write-|Arising from related|
|||Time of write-off|Amount written off|||
|company|receivables|||off|transactions (Y/N)|

 Explanation for write-off of account receivables:
N/A
(4)Account receivables due from the shareholders holding5% or above voting shares of the Company during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Period-end||Period-begin||
|Name of the Company||Bad debt provision||Bad debt provision|
||Book balance||Book balance||
|||accrual||accrual|
|N/A|||||

(6) Top 5 account receivable
In RMB
||||||
|-|-|-|-|-|
||Relation with the|||Portion in total other|
|Name||Amount|Ages||
||Company|||receivables (%)|
|Shenzhen Shengbo|||||
|Optelectric Technology|Subsidiary|57,000,000.00|Within 1 year|67.54%|
|Co., Ltd.|||||
|Jiangxi Xuanli String|||||
||Non-related parties|11,389,044.60|4-5 years|13.50%|
|Co., Ltd.|||||
|Shenzhen Shenfang|||||
|Imports & exports Co.,|Subsidiary|7,168,680.72|4-5 years|8.50%|
|Ltd.|||||
|Shenzhen Beauty|||||
|Century Garment Co.,|Subsidiary|5,000,000.00|Within 1 year|5.92%|
|Ltd.|||||
|||75,600.00|2-3 years|0.09%|
|Anhu Huapeng Textile|||||
||Related parties|2,700,000.00|Within 1 year|3.20%|
|Co., Ltd.|||||
|Total|--|83,333,325.32|--|98.75%|

（6）Other account receivables due from related parties
In RMB
|||||
|-|-|-|-|
|Unit name|Relation with the company|Amount|Percentage of account receivable|
|Shenzhen Shengbo Optelectric||||
||Subsidiary|57,000,000.00|67.54%|
|Technology Co., Ltd.||||
|Shenfang Imports & exports||||
||Subsidiary|7,168,680.72|8.50%|
|Co., Ltd.||||
|Shenzhen Beauty Century||||
||Subsidiary|5,075,600.00|6.01%|
|Garment Co., Ltd.||||
|Anhui Huapeng Textile Co.,||||
||Sharing Company|2,700,000.00|3.20%|
|Ltd.||||
|Total|--|71,944,280.72|85.25%|

（7）Transferring amount is 0 Yuan for accounts receivable not conforming to terminate the confirmation 2.Long-term equity investments
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Accounti|Initial|Originalnbalance|||Shareholdingproportio|Voting|Explanati||||
||||||Ending|||||Current|Cash|
|Name|ng|investme||change|||right|on of|Devalue|||
||||||Balance|||||devalue|bonus|
||method|t cost|||||proportio|diffidence||||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||n in the|n in the|between||
|||||||investee|investee|sharehold||
|||||||||ing||
|||||||||proportio||
|||||||||n and||
|||||||||voting||
|||||||||right||
|||||||||proportio||
|||||||||n in||
|||||||||investee||
|Shenzhen||||||||||
|Jintian||||||||||
||Cost|14,831,68|14,831,68||14,831,68||||14,831,68|
|Industry||||||3.68%|3.68%|||
||method|1.50|1.50||1.50||||1.50|
|(Group)C||||||||||
|o., Ltd.||||||||||
|Shenzhen||||||||||
|Haohao||||-||||||
||Equity|2,040,102|3,662,282||3,450,733|||||
|PropertyL||||211,549.0||50.00%|50.00%|||
||method|.73|.82||.77|||||
|easing||||5||||||
|Co., Ltd.||||||||||
|Shenzhen||||||||||
|Xieli||||||||||
||Equity|1,529,483|3,324,699|143,689.1|3,468,388||||266,654.9|
|Automobi||||||50.00%|50.00%|||
||method|.67|.56|7|.73||||9|
|le Co.,||||||||||
|Ltd.||||||||||
|Shenzhen||||||||||
|Changlia||||||||||
|nfa||||||||||
||Equity|2,524,500|1,758,451||1,773,054|||||
|Printing||||14,603.39||40.25%|40.25%|||
||method|.00|.34||.73|||||
|and||||||||||
|dyeing||||||||||
|Company||||||||||
|Jordan||||||||||
|||7,240,625|2,856,402|119,959.6|2,976,362|||||
|Garnent|Equity|||||35.00%|35.00%|||
|||.00|.65|8|.33|||||
|Factory|method|||||||||
|Hengshun||||||||||
|（ Saipan||||||||||
||Equity|8,228,350||||||||
|）||||||35.00%|35.00%|||
||method|.00||||||||
|Industry||||||||||
|Co., Ltd.||||||||||
|Shenzhen||||||||||
||Cost|40,500,00|1,716,663||1,716,663|100.00%|100.00%|||
|Shengbo||||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|optoelectr|method|0.00|,070.03|,070.03||||
|onic||||||||
|Technolo||||||||
|gy Co.,||||||||
|Ltd.||||||||
|Shenzhen||||||||
|Lisi|Cost|6,666,132|8,073,388|8,073,388||||
||||||90.68%|100.00%||
|Industrial|method|.60|.25|.25||||
|Co., Ltd.||||||||
|Shenzhen||||||||
|Beauty||||||||
||Cost|30,867,40|30,867,40|30,867,40|||2,167,431|
|Centruty|||||100.00%|100.00%||
||method|0.00|0.00|0.00|||.21|
|Garment||||||||
|Co., Ltd.||||||||
|Shenzhen||||||||
|Shenfang||||||||
||Cost|6,299,700|6,299,700|6,299,700||||
|Import &|||||100.00%|100.00%|82,156.61|
||method|.00|.00|.00||||
|Export||||||||
|Co., Ltd.||||||||
|Shenzhen||||||||
||Cost|14,623,00|15,489,35|15,489,35||||
|Huaqiang|||||95.00%|100.00%||
||method|3.00|1.08|1.08||||
|Hotal||||||||
|Shenfang||||||||
|Property||||||||
||Cost|1,600,400|1,713,186|1,713,186||||
|Managem|||||93.75%|100.00%||
||method|.00|.55|.55||||
|ent Co.,||||||||
|Ltd.||||||||
|Shenzhen||||||||
|Jiafeng|Cost|16,800,00|16,800,00|16,800,00|||16,800,00|
||||||10.80%|10.80%||
|Textile|method|0.00|0.00|0.00|||0.00|
|Co., Ltd.||||||||
|Shenzhen||||||||
|Guanhua||||||||
|Pruting|Cost|5,491,288|5,491,288|5,491,288|||5,058,307|
||||||45.00%|45.00%||
|and|method|.71|.71|.71|||.01|
|dyeing||||||||
|Co., Ltd.||||||||
|Union||||||||
|Develop|Cost|2,600,000|2,600,000|2,600,000||||
||||||2.87%|2.87%||
|ment|method|.00|.00|.00||||
|Group||||||||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Co., Ltd.|||||||||||
|Shenzhen|||||||||||
|Xiangjian|Cost|160,000.0|160,000.0||160,000.0||||||
|||||||20.00%|20.00%||||
|g Trade|method|0|0||0||||||
|Co., Ltd.|||||||||||
|Shenzhen|||||||||||
|Xinfang|Cost|524,000.0|524,000.0||524,000.0|||||112,000.0|
|||||||20.00%|20.00%||||
|Knitting|method|0|0||0|||||0|
|Co., Ltd.|||||||||||
|Hongkon|||||||||||
|g Yehui|||||||||||
||Cost|2,392,914|2,392,914||2,392,914|||||421,830.0|
|Internatio||||||17.85%|17.85%||||
||method|.37|.37||.37|||||0|
|nal Co.,|||||||||||
|Ltd.|||||||||||
|Shenzhen|||||||||||
|Dailishi|||||||||||
||Cost|532,062.5|2,559,856||2,559,856|||||786,200.0|
|Underwe||||||30.00%|||||
||method|0|.26||.26|||||0|
|ar Co.,|||||||||||
|Ltd.|||||||||||
|Anhu|||||||||||
|Huapeng|Cost|25,000,00|25,410,20||25,410,20||||||
|||||||50.00%|||||
|Textile|method|0.00|9.50||9.50||||||
|Co., Ltd.|||||||||||
|||190,451,6|1,861,477||1,861,544||||39,206,23|1,320,030|
|Total|--|||66,703.19||--|--|--|||
|||44.08|,882.62||,585.81||||1.32|.00|

 Notes
Shenzhen Dailisi underwear Co., Ltd. and Anhui Huapeng textile Co., Ltd. had adopted outsourcing for contractual operation.
3. Business income and Business cost
（1）Business income
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Income from Business income|||
||28,848,917.44|28,654,762.09|
|Other Business income|||
||1,806,431.00|1,828,836.96|
|Total|30,655,348.44|30,483,599.05|
|Cost from Business cost|5,529,444.88|6,096,505.49|

（2）Mainbusiness（Industry）
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Name|||||
||Business income|Business cost|Business income|Business cost|
|Rental|||||
||28,848,917.44|3,723,013.89|28,654,762.09|4,267,668.53|
|Total|28,848,917.44||28,654,762.09||
|||3,723,013.89||4,267,668.53|

（3）Mainbusiness（Production）
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Name|||||
||Business income|Business cost|Business income|Business cost|
|Rental income|||||
||28,848,917.44|3,723,013.89|28,654,762.09|4,267,668.53|
|Total|28,848,917.44||28,654,762.09||
|||3,723,013.89||4,267,668.53|

（4）Mainbusiness（Area）
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Name|||||
||Business income|Business cost|Business income|Business cost|
|Shenzhen|||||
||28,848,917.44|3,723,013.89|28,654,762.09|4,267,668.53|
|Total|28,848,917.44||28,654,762.09||
|||3,723,013.89||4,267,668.53|

（5）Total income and the ratio of operating income from top five clients
In RMB
||||
|-|-|-|
|Name|Business Income|Proportion(%)|
|Client 1|13,486,645.50|44.00%|
|Client 2|889,440.00|2.90%|
|Client 3|711,302.28|2.32%|
|Client 4|574,200.00|1.87%|
|Client 5|538,974.00|1.76%|

||||
|-|-|-|
|Total|16,200,561.78|52.85%|

 4. Investment income
(1) Details of investment income
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Income from long-term equity investment measured by|||
||1,830,705.00|24,115,950.89|
|adopting the cost method|||
|Income from long-term equity investment measured by|||
||541,081.40|421,730.17|
|adopting the Equity method|||
|Hold the investment income during from available-for-sale|||
||16,994,763.49|19,468,746.45|
|financial assets|||
||19,366,549.89|44,006,427.51|
|Total|||

（2）Long term equity investment calculated to costmethod：
In RMB
|||||
|-|-|-|-|
|Name|Amount of current|Amount of previous|Change cause|
||period|period||
|Shenzhen Shenfang Property Management||||
|||676,276.28|Subsidiary Profit distribution|
|Co., Ltd.||||
|||5,096,339.42|Subsidiary Profit distribution|
|Shenzhen Huaqiang Hotel Co., Ltd.||||
|Shenzhen Dailishi Industry Development||||
|||11,028,068.57|Subsidiary Profit distribution|
|Co., Ltd.||||
|Shenzhen Jinlan Decorative Articles||||
|||5,935,266.62|Subsidiary Profit distribution|
|Industrial Co., Ltd.||||
||900,000.00|900,000.00||
|Anhu Huapeng Textile Co., Ltd.||||
|Shenzhen Dailishi Underwear Co., Ltd.|396,875.00|400,000.00||
|Shenzhen Xinfang Knitting Co., Ltd.|112,000.00|80,000.00||
|Hongkong Yehui International Co., Ltd.|421,830.00|||
|Total|1,830,705.00|24,115,950.89|--|

（3）Long term equity investment calculated via equity method
In RMB
|||||
|-|-|-|-|
|Name|Amount of current|Amount of previous|Cbange cause|
||period|period||
|Shenzhen Haohao Property Leasing Co.,||||
||262,829.16|275,108.09||
|Ltd.||||
|Shenzhen Xieli Automobile Co., Ltd.|143,689.17|181,327.70||
|Shenzhen Changlianfa Printing & dyeing Company|14,603.39|-34,079.89||
|Jordan Garment Factory|119,959.68|-625.73||

|||||
|-|-|-|-|
|Total|541,081.40|421,730.17|--|

Notes
The company has no big restriction on the investment earning repatriation.
5. Supplement information of Cash Flow Statement
In RMB
||||
|-|-|-|
|Supplement information|Amount of current period|Amount of previous period|
|I. Adjusting net profit to cash flow from operating activities|||
||--|--|
|Net profit|31,582,639.62|45,548,330.24|
|Add : Impairment loss provision of assets|||
||-5,108,721.37|-456,398.70|
|Depreciation of fixed assets, oil and gas assets and|||
||4,127,065.78|4,261,643.66|
|consumablebiological assets|||
|Amortization of intanglble assets|||
||302,272.04|300,275.16|
|Loss on investment|||
||-19,366,549.89|-44,006,427.51|
|Decrease of deferred income tax assets|||
||1,277,180.34|97,849.68|
|Increase of deferred income tax assets|||
||-56,153,854.51|888,213.05|
|Decrease of operating receivable|||
||7,968,896.27|7,111,534.45|
|Increase of operating receivables|||
||6,001,270.40|1,897,479.52|
|Net cash flows arising from operating activities|-29,369,801.32|15,642,499.55|
|II. Significant investment and financing activities that withoutcash|||
||--|--|
|flows|||
|3．Net Changes of cash and cash equivalents|--|--|
|Ending balance of cash|454,165,302.55|269,387,555.45|
|Less: Beginning balance of cash equivalents|||
||365,620,681.34|33,906,151.53|
|Net increase of cash and cash equivalents|88,544,621.21|235,481,403.92|

XIV. Supplement information
1. Details of extraordinary gains and losses for the current report period
In RMB
||||
|-|-|-|
|Items|Amount|Notes|

||||
|-|-|-|
|Gains/losses from the disposal of non-current asset (including the|||
||-3,638.02||
|write-off that accrued for impairment of assets)|||
|Govemment subsidy recognized in currentgain and loss(excluding|||
|those closely related to the Company’s business and granted|5,693,784.01||
|under the state’s policies)|||
|Except for effective hedge business relevant to normal|||
|operationof the Company, gains and losses arising from fair value|||
|change of tradable financial assets and tradable financial|||
||16,994,763.49||
|liabilities, and investment income from disposal of tradable|||
|financial assets, tradable financial liabilities and financial assets|||
|available for sale|||
|Other non-operating income and expenditure except for the|||
||249,262.13||
|aforementioned ones|||
|Less：Influenced amount of income tax|4,280,794.78||
|Total|18,653,376.83|--|

Explain recognition reasons item-by-item if the government subsidy reckoned into current gains/losses was the recurring gains/losses
□Applicable√ Not applicable
2. Difference of the accounting data under accounting rules in and out of China
(1)Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to the shareholders||Net Assets attributable to the||
||of the listed company||shareholders of the listed company||
||Amount in the|Amount in the|End of the reporting|Beginning of the|
||reporting period|previous period|period|reporting period|
|According to CAS|-21,644,510.10|-8,041,264.26|2,264,892,718.01|2,297,846,577.11|
|Items and amount adjusted according to IAS|||||

(2) Difference in Net profit and net Assets in the Financial Report as Disclosed Respectively according to the Accounting standards Outside Mainland China and the Chinese Accounting Standards.
In RMB
|||||
|-|-|-|-|
|Net profit attributable to the shareholders||Net Assets attributable to the||
|of the listed company||shareholders of the listed company||
|Amount in the|Amount in the|End of the reporting|Beginning of the|
|reporting period|previous period|period|reporting period|

||||||
|-|-|-|-|-|
|According to CAS|-21,644,510.10|-8,041,264.26|2,264,892,718.01|2,297,846,577.11|
|Items and amount adjusted according to IAS|||||

N/A
(3)Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.
N/A
3.Return on net assets and earnings per share
In RMB
|||||
|-|-|-|-|
||Return on net assets .|Earnings per share（RMB）||
|Profit of the report period||||
||Weighted（%）|Basic earnings per share|Diluted gains per share|
|Net profit attributable to the Common stock||||
||-0.95%|-0.04|-0.04|
|shareholders of Company.||||
|Net profit attributable to the Common stock||||
|shareholders of Company after deducting of|-1.77%|-0.08|-0.08|
|non-recurring gain/loss.||||

4. The explanation of abnormal circumstance and reasons of items in major accounting statement.
1. The ending balance of payment in advance increased by RMB 35.0657 million and166.73% over beginning of period mainly due to the increase of export orders by the end of current period.
2. The ending balance of other receivable decreased by RMB 115.4486 million and82.3% over beginning of period mainly due to the transfer balance of100% equity of Shenzhen Jinlan Decorative Supplies Industrial Co.,Ltd.
3.The ending balance of Available for sale financial assets decreased by RMB17.4851 million and41.8% over beginning of period mainly due to the reduction of holding Victor Onward A stocks in this period;
4.The ending balance of construction in progress increased by RMB 22.9376 million and436.46% over beginning of period. These funds were mainly invested in the phase-II project of polarizer for TFT-LCD;
5. The ending balance of advance collections increased by RMB 31.2293 million and98.6% over beginning of period mainly due to increase of advances on sales for export trade the end of period.
6.The ending balance of Deferred income tax liabilities decreased by RMB56.1539 million and93.23% over beginning of period, Mainly due the termporary taxable difference formulated by the transfer income of the equity of Shenzhen Jinlan Decorative Articles Industrial Co., Ltd.
7 Financial expenses increased by RMB7.0966 million and50.95% over beginning of period,
mainly due to the depreciation of RMB, the decreased exchange profit resulted from increase of foreign exchange
losses compared with the same period last year.
8..Income tax expenses in current period Increased by RMB 6.0613 million and82.81% year on year，Mainly due to the reversal of deductible temporary differences in this period .
（9）Net cash flow generated by business operation in current period decreased by RMB 33.5976 million and58.99% year on year, Mainly due to the payment of the transfer the income tax of Shenzhen Jinlan Decorative Supplies Industrial Co. Ltd. .
10.Net cash flow generated by investment in current period increased by RMB 543.5756 million and153.25% year on year , Mainly due to receive equity balance and structured deposits of Shenzhen Jinlan Decorative Supplies Industrial Co. Ltd. in this period.
11. Net cash flow generated by financing in current period decreased by RMB 914.8116 million and99.02% year onyear，Mainly due to the non-public offering of shares over the same period last year, receive raised funds. The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
August 21, 2014