Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018 Shenzhen Textile (Holdings) Co., Ltd.
The First Quarterly Report 2018
April 2018
Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018 1 Important Notice
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof. All the directors attended the board meeting for reviewing the Quarterly Report.
Mr.Zhu Jun, Person in charge of the Company, Mr. Zhu Meizhu, Chief financial officer and the Mr. Mu Linying Jun, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this Quarterly Report .
This Report has been prepared in both Chinese and English , In case any discrepancy , the Chinese version shall prevail.
Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018 II. Basic Information of the Company
（1）Main financial data and financial index
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes√ No
|||||
|-|-|-|-|
||||Changes of this period over|
||This period|Same period of last year|same period of last year|
||||（％）|
|Operating income（Yuan）|221,307,388.08|272,392,669.11|-18.75%|
|Net profit attributable to the shareholders|5,616,717.00|4,302,137.37||
||||30.56%|
|of the listed company（Yuan）||||
|Net profit after deducting of non-recurring||||
|gain/loss attributable to the shareholders of|-4,641,384.38|-2,285,765.61|-103.06%|
|listed company（Yuan）||||
|Cash flow generated by business operation,|-35,263,573.85|-185,774,958.96||
||||81.02%|
|net（Yuan）||||
|Basic earning per share(Yuan/Share)|0.0110|0.0085|29.41%|
|Diluted gains per share(Yuan/Share)|0.0110|0.0085|29.41%|
|Weighted average return on equity||||
||0.23%|0.13%|0.10%|
|（%）||||
||||Changes of this period-end|
||End of this period|End of last period|over same period-end of last|
||||year(%)|
|Gross assets（Yuan）|4,172,890,105.33|4,195,746,507.56|-0.54%|
|Net assets attributable to the shareholders|2,403,478,906.15|2,397,474,603.79||
||||0.25%|
|of the listed company（Yuan）||||

Items and amount of non-current gains and losses
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
|||Changes of this period-end over|
|End of this period|End of last period||
|||same period-end of last year(%)|
|Non-current asset disposal gain/loss(including the write-off part|||
||-34,105.41||
|for which assets impairment provision is made)|||
|Govemment subsidy recognized in current gain and|||
||4,658,570.00||
|loss(excluding those closely related to the Company’s business|||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|and granted under the state’s policies)|||
|Profit /loss on entrusting others with investments or asset|||
||12,548,525.85||
|management|||
|Other non-operating income and expenditure except for the|||
||-48,304.80||
|aforementioned items|||
|Less: Amount of influence of income tax|21,673.80||
|Amount of influence of minority interests（After tax）|6,844,910.46||
|Total|10,258,101.38|--|

For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason.
□Applicable√ Not applicable
None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non–recurring gain/loss in the report period.
Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018 II. Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period
1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders
In shares
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Total preference shareholders|||||
|Total number of common||||with the voting power|||||
|||39,976|||||0||
|shareholders at the period-end||||recovered at the end of the|||||
|||||reporting period(if any)|||||
|Shares held by the top 10 shareholders|||||||||
||||||Amount of|Pledging or freezing|||
||Properties of|Share|||tradable shares||||
|Shareholder name|||Quantity|||Status of the|||
||shareholder|proportion %|||with Conditional|||Quantity|
|||||||shares|||
||||||held||||
|ShenzhenInvestmentHoldings Co.,Ltd.|State-owned legalperson|45.78%|234,069,436||0||||
|ShenzhenShenchaoTechnologyInvestment Co.,Ltd.|State-ownedLegal person|3.15%|16,129,032||0||||
|Fujiang BairuiJiayuan, AssetManagement Co.,Ltd.－BairuiJiayuan Growth IFund|Other|0.73%|3,731,535||0||||
|Sun Huiming|Domestic Natureperson|0.62%|3,192,767||0||||
|Li Songqiang|Domestic Natureperson|0.48%|2,443,078||0||||
|Liu Dongxia|Domestic Natureperson|0.30%|1,544,800||0||||
|Zhu Ye|Domestic Natureperson|0.26%|1,331,945||0||||
|Xiong Yan|Domestic Natureperson|0.21%|1,058,900||0||||
|Hong Fan|Domestic Natureperson|0.20%|1,047,600||0||||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||||||
|-|-|-|-|-|-|-|
|Zheng Junsheng|Domestic Natureperson|0.20%|1,000,000|0|||
|Shareholding of top 10 shareholders of unrestricted shares|||||||
|||Quantity of unrestricted shares held at the end of the|||Share type||
|Name of the shareholder|||||||
|||reporting period|||Share type|Quantity|
|Shenzhen Investment Holdings Co.,Ltd.||234,069,436|||RMB Common||
|||||||234,069,436|
||||||shares||
|Shenzhen Shenchao TechnologyInvestment Co., Ltd.||16,129,032|||RMB Common||
|||||||16,129,032|
||||||shares||
|Fujiang Bairui Jiayuan, AssetManagement Co., Ltd.－BairuiJiayuan Growth I Fund||3,731,535|||||
||||||RMB Common||
|||||||3,731,535|
||||||shares||
|Sun Huiming||3,192,767|||Foreign shares||
||||||placed in||
|||||||3,192,767|
||||||domestic||
||||||exchange||
|Li Songqiang||2,443,078|||RMB Common||
|||||||2,443,078|
||||||shares||
|Liu Dongxia||1,544,800|||RMB Common||
|||||||1,544,800|
||||||shares||
|Zhu Ye||1,331,945|||RMB Common||
|||||||1,331,945|
||||||shares||
|Xiong Yan||1,058,900|||RMB Common||
|||||||1,058,900|
||||||shares||
|Hong Fan||1,047,600|||RMB Common||
|||||||1,047,600|
||||||shares||
|Zheng Junsheng||1,000,000|||RMB Common||
|||||||1,000,000|
||||||shares||
|||Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of|||||
|||Shenzhen Investment Holding Co., Ltd. and a person taking concerted action. Except this, the|||||
|||Company did not whether there is relationship between the top ten shareholders holding|||||
|Related or acting-in-concert parties|||||||
|||non-restricted negotiable shares and between the top ten shareholders holding non-restricted|||||
|among shareholders above|||||||
|||negotiable shares and the top 10 shareholders or whether they are persons taking concerted|||||
|||action defined in Regulations on Disclosure of Information about Shareholding of|||||
|||Shareholders of Listed Companies.|||||
|||The Company Fujiang Bairui Jiayuan, Asset Management Co., Ltd.－Bairui Jiayuan Growth|||||
|Explanation on shareholders||I Fund holds 3,731,535 shares of the Company through stock account with credit transaction ;|||||
|participating in the margin trading||The Company Shareholder Li Songqiang holds1,837,653 shares of the Company through|||||
|business(if any )||stock account with credit transaction ; The Company Shareholder Liu Dongxia|||||
|||holds1,544,800 shares of the Company through stock account with credit transaction ;|||||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||
|-|
|The Company Shareholder Zhu Ye holds 1,331,945 shares of the Company through stock|
|account with credit transaction ; The Company Shareholder Hong Fan holds 18,700 shares of|
|the Company through stock account with credit transaction .|

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.
□ Yes√ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy–back agreement dealing in reporting period.
2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period
□ Applicable√Not applicable
Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018 III Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes
√ Applicable□ Not applicable
||
|-|
|1.The ending balance of bank deposit decreased by RMB 456.7557 million and 39.20% over beginning of period，|
|It mainly purchases structured deposits, and the corresponding amount is transferred to other current assets.|
|2.The ending balance of Notes receivable decreased by RMB 20.5022 million and 46.38% over beginning of|
|period，Mainly due to the maturity of the notes.|
|3.The ending balance of Prepayments increased by RMB 13.36 million and 97.18% over beginning of period，|
|Mainly due to the development of trade business.|
|4. The ending balance of Other current account increased by RMB 131.2543 million and 278.28% over beginning|
|of period，This is mainly due to the increase in prepaid technical services.|
|5. The ending balance of account payable decreased by RMB 42.5835 million and 43.85% over beginning of|
|period，Mainly due to payable accounts payable.|
|6. The ending balance of Employee benefits payable decreased by RMB9.5982 million and 32.53% over|
|beginning of period, Mainly due to the payment of employee compensation in the previous year.|
|7. Financial expenses in current period increased by RMB 2.9304 million and 78.28% Year on Year, The main|
|reason is to obtain a reduction in interest income.|
|8. Impairment loss of assets in current period decreased by RMB2.6427 million and 47.40% year on year，The|
|main reason is to reduce the provision for falling prices of polarizers.|
|9.Investment Income in current period increased by RMB4.7463 million and 57.59% year on year, The main|
|reason is to increase the income from entrusted financial management.|
|10 .The net cash flows from operating activities in current period increased by RMB150.5114 million and 81.02%|
|year on year，The cash paid for the purchase of raw materials was mainly reduced year-on-year.|
|11.The net cash flows from investment activities in current period decreased by RMB416.1901 million and|
|2,922.05% year on year，The cash paid for the purchase of raw materials was mainly reduced year-on-year.|
|Mainly due to the year-on-year decrease in the net cash flow from the purchase of and redemption of structured|
|deposits and trust management.|
|12.The net cash flows from financing activities in current period increased by RMB4.9825 million and 100.19%|
|year on year，Mainly due to the increase in the payment of foreign exchange bills|

II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal.
√ Applicable□ Not applicable
(1) Progress information about the second phase of No.6 line TFT-LCD polarizer project
During the reporting period, the optimization of the second phase of the 6th line project was carried out according to plan. In view of the declining prices of 32 Inch products in the polarizer market at the end of 2017, the company launched the host equipment for Phase 2 Line 6 at the end of 2017 to adjust the product structure.
Improve optimization. The optimization of the project was carried out according to plans, and the drying oven
reconstruction project, the ceiling lifting project of the fitting zone, and the wet process driving transformation
project were completed, and the optimization and improvement of the AOI system transformation were being
Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018 carried out. As of March 31, 2018, the cumulative investment in the second phase of Line 6 was RMB 574.1186 million, accounting for 81.98% of the total investment amount of RMB 700.34 million after the change, of which the actually paid investment was RMB 542.9818 million (used the raised funds of RMB 211.6002 million, and used the self-owned funds and government funds of RMB 331.3816 million).
(II)About the Progress of Signing the Technology Cooperation Contract between theCompany’s Subsidiary and Japan Nitto
In order to introduce the world's leading technology of Japanese polarizer company, it plans to build an ultra-wide-width i.e. the width 2,500mm of TFT-LCD polarizer production line project (hereinafter referred to as "Line 7 Project"), Shenzhen Shengbo Optoelectronics Technology Co., Ltd (Hereinafter referred as "Shengbo Optoelectronic") on November 6, 2017 and Hangzhou Jinjiang Group Co., Ltd (hereinafter referred to as "Jinjiang Group") and Kunshan Chimei Material Technology Co., Ltd signed the "Technology Cooperation Contract" with Japan Nitto Corporation( Hereinafter referred as "Nitto") in connection to related matters of introducing the production line technology of 2,500mm polarizer. The company plans to, through the cooperation with
professional investment institution and initiated by Jinjiang Group and that Shengbo Optoelectronics participated in, establish the polarizer industry fund, and the Fund and Shengbo Optoelectronic set up the “Project Company” as a main construction body to invest and construct the Line 7 Project. For details, please refer to theCompany’s “Announcement on theCompany’ssubsidiary’s Signing of Technology Cooperation Contract” disclosed on http://www.cninfo.com.cn.(Announcement No.:2017-53).
During the reporting period, the "Technology Cooperation Contract" has been in normal performance, and the Company carried out the communication and confirmation of the project schedule, plant planning and design, equipment specification and parameters and others related to the Line 7 Project with Nitto. The company will continuously disclose the performance information of the aforementioned contract and the progress of the Line 7 project, and fulfill the review of procedures and the information disclosure in accordance with the amount of investment.
III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period
√Applicable□Not applicable
||||||||
|-|-|-|-|-|-|-|
|||||Time of|||
||Commitment||||Period of||
|Commitment||Type|Contents|making||Fulfillment|
||maker||||commitment||
|||||commitment|||
||||As Shenzhen||||
||||Investment||||
||||Holdings Co.,||||
||Shenzhen||Ltd., the||||
|||Share|||||
||Investment||controlling|August 4,|Sustained and|Under|
|Commitment on share reform||reduction|||||
||Holdings Co.,||shareholder of|2006|effective|Fulfillment|
|||commitment|||||
||Ltd.||the company,||||
||||committed||||
||||when the||||
||||restricted-for-s||||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||
|-|
|ale shares|
|from the|
|shares|
|restructuring|
|were listed for|
|circulation in|
|the market: i.|
|if they plan to|
|sell the shares|
|through the|
|securities|
|exchange|
|system in the|
|future, and the|
|decrease of|
|the shares they|
|hold reaches|
|5% within 6|
|months after|
|the first|
|decrease, they|
|will disclose|
|an|
|announcement|
|indicating the|
|sale through|
|the company|
|within two|
|trading days|
|before the first|
|decrease; ii.|
|They shall|
|strictly|
|observe the|
|“Guidelines|
|on Transfer of|
|Restricted-for-|
|sale Original|
|Shares of|
|Listed|
|Companies” a|
|nd the|
|provisions of|
|the relevant|

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||||||
|-|-|-|-|-|-|-|
||||business||||
||||principles of||||
||||Shenzhen||||
||||Stock||||
||||Exchange.||||
|Commitment in the acquisition report|||||||
|or the report on equity changes|||||||
||||The company,||||
||||according to||||
||||the relevant||||
||||provisions of||||
||||Measures for||||
||||the||||
||||Administratio||||
||||n of Major||||
||||Asset||||
||||Restructuring||||
||||of Listed||||
||||Companies,||||
||||No.10||||
||||Guidelines for||||
||||Business||||
||||Handling of||||
||||Listed||||
|||No major|||||
||Shenzhen||Companies-||||
|Commitment made upon the assets||asset||December|February||
||Textile(Holdin||Major Asset|||Fulfilled|
|replacement||restructuring||19,2016|18,2017||
||gs) Co., Ltd.||Restructuring||||
|||commitments|||||
||||and No.9||||
||||Business||||
||||Memorandum||||
||||of Main Board||||
||||Information||||
||||Disclosure-Su||||
||||spending||||
||||Stock-trading||||
||||for Listed||||
||||Companies,||||
||||committed||||
||||that the||||
||||company shall||||
||||not plan a||||
||||major asset||||
||||restructuring||||
||||matter in 2||||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||||||
|-|-|-|-|-|-|-|
||||months||||
||||commenced||||
||||from the date||||
||||of termination||||
||||of the major||||
||||asset||||
||||restructuring||||
||||namely the||||
||||date of||||
||||announcement||||
||||on resuming||||
||||the company's||||
||||stock trading.||||
||||Shenzhen||||
||||Investment||||
||||Holdings Co.,||||
||||Ltd. signed a||||
||||“Letter of||||
||||Commitment||||
||||and Statement||||
||||on Horizontal||||
||||Competition||||
||||Avoidance”||||
||||when the||||
||||company||||
|||Commitments|issued||||
|||on horizontal|non-public||||
||Shenzhen||||||
|||competition,|stocks in||||
||Investment|||October 9,|Sustained and|Under|
|Commitments made upon issuance||related|2009.||||
||Holdings Co.,|||2009|effective|Fulfillment|
|||transaction|Pursuant to||||
||Ltd.||||||
|||and capital|the Letter of||||
|||occupation|Commitment||||
||||and Statement,||||
||||Shenzhen||||
||||Investment||||
||||Holdings Co.,||||
||||Ltd. and its||||
||||wholly owned||||
||||subsidiary,||||
||||subsidiaries||||
||||under control||||
||||or any other||||
||||companies||||
||||that have||||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||
|-|
|actual control|
|of it shall not|
|be involved in|
|the business|
|the same as or|
|similar to|
|those|
|Shenzhen|
|Textile|
|currently or|
|will run in the|
|future, or any|
|businesses or|
|activities that|
|may constitute|
|direct or|
|indirect|
|competition|
|with Shenzhen|
|Textile; if the|
|operations of|
|Shenzhen|
|Investment|
|Holdings Co.,|
|Ltd. and its|
|wholly owned|
|subsidiaries,|
|subsidiaries|
|under control|
|or other|
|companies|
|that have|
|actual control|
|of it compete|
|with Shenzhen|
|Textile in the|
|same industry|
|or contradict|
|the interest of|
|the issuer in|
|the future,|
|Shenzhen|
|Investment|
|Holdings Co.,|

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
|||||||
|-|-|-|-|-|-|
|||Ltd. shall urge||||
|||such||||
|||companies to||||
|||sell the equity,||||
|||assets or||||
|||business to||||
|||Shenzhen||||
|||Textile or a||||
|||third party;||||
|||when the||||
|||horizontal||||
|||competition||||
|||may occur due||||
|||to the business||||
|||expansion||||
|||concurrently||||
|||necessary for||||
|||Shenzhen||||
|||Investment||||
|||Holdings Co.,||||
|||Ltd. and its||||
|||wholly owned||||
|||subsidiaries,||||
|||subsidiaries||||
|||under control||||
|||or other||||
|||companies||||
|||that have||||
|||actual control||||
|||of it and||||
|||Shenzhen||||
|||Textile,||||
|||Shenzhen||||
|||Textile shall||||
|||have priority.||||
|||The||||
||Commitments|commitments||||
||on horizontal|during the||||
|Shenzhen||||||
||competition,|period||||
|Investment|||July 14,|Sustained and|Under|
||related|non-public||||
|Holdings Co.,|||2012|effective|Fulfillment|
||transaction|issuance in||||
|Ltd.||||||
||and capital|2012: 1.||||
||occupation|Shenzhen||||
|||Investment||||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||
|-|
|Holdings, as|
|the controlling|
|shareholder of|
|Shenzhen|
|Textile,|
|currently|
|hasn't the|
|production|
|and business|
|activities of|
|inter-industry|
|competition|
|with Shenzhen|
|Textile or its|
|share-holding|
|subsidiary. 2.|
|Shenzhen|
|Investment|
|Holdings and|
|its|
|share-holding|
|subsidiaries or|
|other|
|enterprises|
|owned the|
|actual control|
|rights can't be|
|directly and|
|indirectly on|
|behalf of any|
|person,|
|company or|
|unit to engage|
|in the same or|
|similar|
|business in|
|any districts in|
|the future by|
|the form of|
|share-holding,|
|equity|
|participation,|
|joint venture,|
|cooperation,|

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||
|-|
|partnership,|
|contract,|
|lease, etc., and|
|ensure not to|
|use the|
|controlling|
|shareholder's|
|status to|
|damage the|
|legitimate|
|rights and|
|interests of|
|Shenzhen|
|Textile and|
|other|
|shareholders,|
|or to gain the|
|additional|
|benefits. 3. If|
|there will be|
|the situation|
|of|
|inter-industry|
|competition|
|with Shenzhen|
|Textile for|
|Shenzhen|
|Investment|
|Holdings and|
|its|
|share-holding|
|subsidiaries or|
|other|
|enterprises|
|owned the|
|actual control|
|rights in the|
|future,|
|Shenzhen|
|Investment|
|Holdings will|
|promote the|
|related|
|enterprises to|

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||||||
|-|-|-|-|-|-|-|
||||avoid the||||
||||inter-industry||||
||||competition||||
||||through the||||
||||transfer of||||
||||equity, assets,||||
||||business and||||
||||other ways. 4.||||
||||Above||||
||||commitments||||
||||will be||||
||||continuously||||
||||effective and||||
||||irrevocable||||
||||during||||
||||Shenzhen||||
||||Investment||||
||||Holdings as||||
||||the controlling||||
||||shareholder of||||
||||Shenzhen||||
||||Textile or||||
||||indirectly||||
||||controlling||||
||||Shenzhen||||
||||Textile.||||
||||Commitment t||||
||||o non-public o||||
||||ffering during||||
||||the second pha||||
||||se project of S||||
||Shenzhen||hen Textile sh||||
||Investment|Share limited|ares subscribe|March 25,|||
||||||2016-03-25|Fulfilled|
||Holdings Co.,|commitment|d lock handle,|2013|||
||Ltd.||locking Shen||||
||||Textile non-pu||||
||||blic offering o||||
||||n the stock ma||||
||||rket of 36 mon||||
||||ths.||||
||||1.The||||
||Shenzhen||||||
|||Other|company|November|December|Under|
|Equity incentive commitment|Textile(Holdin||||||
|||commitment|undertakes not|27,2017|27,2021|Fulfillment|
||gs) Co., Ltd.||||||
||||to provide||||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|||loans, loan|
|||guarantees,|
|||and any other|
|||forms of|
|||financial|
|||assistance to|
|||the incentive|
|||objects for|
|||obtaining the|
|||restricted|
|||stocks in the|
|||incentive plan;|
|||2. The|
|||company|
|||undertakes|
|||that there is no|
|||circumstance|
|||that the stock|
|||incentive shall|
|||be prohibited|
|||as stipulated|
|||in the|
|||provisions of|
|||Article 7 of|
|||the “Measures|
|||for the|
|||Management|
|||of Stock|
|||Incentives of|
|||Listed|
|||Companies”.|
|Other commitments made to minority|||
|shareholders|||
|Executed timely or not?|Yes||
|If the commitments failed to complete|||
|the execution when expired, should|||
|specifically explain the reasons of|Not applicable||
|unfulfillment and the net stage of the|||
|working plan|||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018IV．Prediction of Business performance for January- June 2018
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason.
□ Applicable√ Not applicable
V. Investment in securities
□ Applicable√ Not applicable
No securities investment in period.
VI. Investments in derivatives
□ Applicable√ Not applicable
There is no derivative investment during the report period.
VII. The registration form of acceptance of investigation, communication and interview in the report period for future reference
□ Applicable√ Not applicable
The Period has no research, communication and written inquiry from the investors in the report period.
VIII. Outward Guarantee against the Regulations
□ Applicable√Not applicable
The Company has no external guarantee get out of the line in the Period
IX. Controlling shareholder and its related parties occupying non-business capital of the listed company□ Applicable√Not applicable
There are no controlling shareholder and its related parties occupying non-business capital of the listed company in Period
Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018 IV. Financial Statement
I. Financial statement
1. Consolidated balance sheet
Preparedby：Shenzhen Textile (Holdings) Co., Ltd.
In RMB
||||
|-|-|-|
|Items|At the end of term|Beginning of term|
|Current asset：|||
|Monetary fund|708,292,397.27|1,165,048,108.83|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
|Notes receivable|23,704,875.65|44,207,119.00|
|Account receivable|145,170,114.15|192,503,077.70|
|Prepayments|27,122,315.16|13,755,152.05|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts|||
|receivable|||
|Interest receivable|16,078,593.28|15,728,872.62|
|Dividend receivable|||
|Other account receivable|13,560,797.98|12,925,984.45|
|Repurchasing of financial assets|||
|Inventories|319,008,486.70|275,615,176.16|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|1,454,733,565.06|1,148,689,874.10|
|Total of current assets|2,707,671,145.25|2,868,473,364.91|
|Non-current assets：|||
|Loans and payment on other’s behalf|||
|disbursed|||
|Disposable financial asset|65,089,429.36|66,035,733.04|

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|19,529,119.48|20,380,734.56|
|Property investment|172,314,506.90|173,105,806.27|
|Fixed assets|640,910,951.21|656,133,200.19|
|Construction in progress|346,959,047.16|322,570,173.73|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|38,546,580.67|38,870,673.40|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|1,246,277.21|1,035,290.08|
|Deferred income tax asset|2,201,784.41|1,974,536.90|
|Other non-current asset|178,421,263.68|47,166,994.48|
|Total of non-current assets|1,465,218,960.08|1,327,273,142.65|
|Total of assets|4,172,890,105.33|4,195,746,507.56|
|Current liabilities|||
|Short-term loans|99,643,691.56|88,638,181.45|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Notes payable|||
|Account payable|54,521,193.40|97,104,697.18|
|Advance payment|43,331,309.93|34,952,567.83|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|19,905,016.98|29,503,260.65|
|Tax payable|9,023,686.96|6,935,262.57|
|Interest payable|46,384,653.00|45,799,544.04|

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|Dividend payable|||
|Other account payable|157,422,782.04|155,026,799.54|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sales|||
|Non-current liability due in 1 year|40,000,000.00|40,000,000.00|
|Other current liability|||
|Total of current liability|470,232,333.87|497,960,313.26|
|Non-current liabilities：|||
|Long-term loan|40,000,000.00|40,000,000.00|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Long-term payable employees’s|||
|remuneration|||
|Special payable|||
|Expected liabilities|||
|Deferred income|135,498,494.72|134,767,064.72|
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total non-current liabilities|175,498,494.72|174,767,064.72|
||645,730,828.59|672,727,377.98|
|Total of liability|||
|Owners’ equity|||
||511,274,149.00|511,274,149.00|
|Share capital|||
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|1,867,727,072.17|1,866,001,475.17|
|Less：Shares in stock|27,230,679.00|27,230,679.00|
|Other comprehensive income|880,692.23|2,218,703.87|
|Special reserves|||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|Surplus reserves|77,477,042.19|77,477,042.19|
|Common risk provision|||
||-26,649,370.44|-32,266,087.44|
|Undistributed profit|||
|Total of owner’s equity belong to the|||
||2,403,478,906.15|2,397,474,603.79|
|parent company|||
|Minority shareholders’ equity|1,123,680,370.59|1,125,544,525.79|
|Total of owners’ equity|3,527,159,276.74|3,523,019,129.58|
|Total of liabilities and owners’ equity|4,172,890,105.33|4,195,746,507.56|

 Legal Representative: Zhu Jun Person in charge ofaccounting：Zhu Mei Zhu Accounting Dept Leader: Mu Linying
2.Parent Company Balance Sheet
In RMB
||||
|-|-|-|
|Items|At the end of term|Beginning of term|
|Current asset：|||
|Monetary fund|414,760,861.22|413,700,327.95|
|Financial assets measured at fair value|||
|with variations accounted into current|||
|income account|||
|Derivative financial assets|||
|Notes receivable|||
|Account receivable|667,404.02|449,536.21|
|Prepayments|836,580.44|10,000.00|
|Interest receivable|15,653,105.93|13,660,866.80|
|Dividend receivable|||
|Other account receivable|5,272,498.18|5,782,620.63|
|Inventories|||
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|130,000,000.00|120,000,000.00|
|Total of current assets|567,190,449.79|553,603,351.59|
|Non-current assets：|||
|Disposable financial asset|35,089,429.36|36,035,733.04|
|Expired investment in possess|||
|Long-term receivable|||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|Long term share equity investment|1,985,831,116.22|1,984,849,008.23|
|Property investment|164,931,606.62|165,607,900.07|
|Fixed assets|27,845,381.06|28,119,990.58|
|Construction in progress|||
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|1,313,072.94|1,413,305.67|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|||
|Deferred income tax asset|1,759,601.80|1,526,871.33|
|Other non-current asset||493,620.44|
|Total of non-current assets|2,216,770,208.00|2,218,046,429.36|
|Total of assets|2,783,960,657.79|2,771,649,780.95|
|Current liabilities|||
|Short-term loans|||
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Notes payable|||
|Account payable|411,743.57|411,743.57|
|Advance payment|639,024.58|639,024.58|
|Employees’ wage payable|6,557,902.46|8,495,538.21|
|Tax payable|6,120,378.83|3,247,028.64|
|Interest payable|||
|Dividend payable|||
|Other account payable|135,908,578.93|134,018,771.57|
|Classified as held for sale debt|||
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|149,637,628.37|146,812,106.57|
|Non-current liabilities：|||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|Long-term loan|||
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Long-term payable to employees|||
|Special payable|||
|Expected liabilities|||
|Deferred income|775,000.00|800,000.00|
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total of Non-current liabilities|775,000.00|800,000.00|
|Total of liability|150,412,628.37|147,612,106.57|
|Owners’ equity|||
|Share capital|511,274,149.00|511,274,149.00|
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|1,601,520,389.96|1,599,381,854.96|
|Less：Shares in stock|27,230,679.00|27,230,679.00|
|Other comprehensive income|880,692.23|2,218,703.87|
|Special reserves|||
|Surplus reserves|77,477,042.19|77,477,042.19|
|Undistributed profit|469,626,435.04|460,916,603.36|
|Total of owners’ equity|2,633,548,029.42|2,624,037,674.38|
|Total of liabilities and owners’ equity|2,783,960,657.79|2,771,649,780.95|

 3.Consolidated Income statement
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|221,307,388.08|272,392,669.11|
|Incl：Business income|221,307,388.08|272,392,669.11|
|Interest income|||
|Insurance fee earned|||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|Fee and commission received|||
|II. Total business cost|231,890,134.62|280,214,579.88|
|Incl：Business cost|201,412,228.67|253,475,015.89|
|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|1,875,292.08|2,585,948.73|
|Sales expense|1,836,791.12|2,133,505.40|
|Administrative expense|24,646,539.57|20,188,494.12|
|Financial expenses|-812,983.29|-3,743,353.85|
|Asset impairment loss|2,932,266.47|5,574,969.60|
|Add：Gains from change of fir value|||
|（“-”for loss）|||
|Investment gain（“-”for loss）|12,988,132.73|8,241,818.53|
|Incl: investment gains from affiliates|189,606.88|533,097.00|
|Gains from currency exchange|||
|Assets dispose loss|||
|Other income|4,658,570.00||
|III. Operational profit（“-”for loss）|7,063,956.19|419,907.76|
|Add ：Non-operational income|61,695.20|3,975,357.70|
|Less：Non business expenses|144,103.41|3,182.59|
|IV.Total profit(“-”for loss)|6,981,547.98|4,392,082.87|
|Less：Income tax expenses|3,228,986.18|3,304,397.55|
|V. Net profit|3,752,561.80|1,087,685.32|
|1.Net continuing operating profit|3,752,561.80|1,087,685.32|
|2.Termination of operating net profit|||
|Net profit attributable to the owners of|||
||5,616,717.00|4,302,137.37|
|parent company|||
|Minority shareholders’ equity|-1,864,155.20|-3,214,452.05|
|VI. Other comprehensive income|-1,338,011.64|-212,405.21|
|Net of profit of other comprehensive inco|-1,338,011.64|-212,405.21|

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|me attributable to owners of the parent co|||
|mpany.|||
|（I）Other comprehensive income items|||
|that will not be reclassified into|||
|gains/losses in the subsequent accounting|||
|period|||
|1.Re-measurement of defined benefit pla|||
|ns of changes in net debt or net assets|||
|2.Other comprehensive income under the|||
|equity method investee can not be reclass|||
|ified into profit or loss.|||
|（II）|||
|Other comprehensive income that will be|-1,338,011.64|-212,405.21|
|reclassified into profit or loss.|||
|1.Other comprehensive income under the|||
|equity method investee can be reclassifie|||
|d into profit or loss.|||
|2.Gains and losses from changes in fair v|||
||-709,727.75|-59,143.98|
|alue available for sale financial assets|||
|3.Held-to-maturity investments reclassifi|||
|ed to gains and losses of available for sal|||
|e financial assets|||
|4.The effective portion of cash flow hedg|||
|es and losses|||
|5.Translation differences in currency fina|||
||-628,283.89|-153,261.23|
|ncial statements|||
|6.Other|||
|Net of profit of other comprehensive inco|||
|me attributable to Minority shareholders’|||
|equity|||
|VII. Total comprehensive income|2,414,550.16|875,280.11|
|Total comprehensive income|||
|attributable to the owner of the parent|4,278,705.36|4,089,732.16|
|company|||
|Total comprehensive income|||
||-1,864,155.20|-3,214,452.05|
|attributable minority shareholders|||
|VIII. Earnings per share|||
|（I）Basic earnings per share|0.0110|0.0085|

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|(II)Diluted earnings per share|0.0110|0.0085|

 If there are entities merged under common control, their net profit realized before the merger were totaled to RMB0.00. While it was RMB0.00 previous period.
Legal Representative: Zhu Jun Person in charge ofaccounting：Zhu Jun Accounting Dept Leader: Mu Linying
4. Income statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|16,418,067.39|16,073,030.51|
|Incl：Business cost|2,319,453.78|2,894,005.19|
|Business tax and surcharge|682,141.89|689,044.98|
|Sales expense|||
|Administrative expense|6,237,078.40|4,867,158.87|
|Financial expenses|-3,835,518.39|-2,994,195.81|
|Asset impairment loss|-15,381.82|-158,361.17|
|Add：Gains from change of fir value|||
|（“-”for loss）|||
|Investment gain（“-”for loss）|439,606.88|1,233,485.20|
|Incl: investment gains from affiliates|189,606.88|533,097.00|
|Assets disposal income|||
|Other income|25,000.00||
|II. Operational profit（“-”for loss）|11,494,900.41|12,008,863.65|
|Add ：Non-operational income|55,006.21||
|Less：Non business expenses||1,582.15|
|III.Total profit(“-”for loss)|11,549,906.62|12,007,281.50|
|Less：Income tax expenses|2,840,074.94|2,868,449.07|
|IV. Net profit（“-”for net loss）|8,709,831.68|9,138,832.43|
|1.Net continuing operating profit|8,709,831.68|9,138,832.43|
|2.Termination of operating net profit|||
|V.Net of profit of other comprehensive i|||
||-1,338,011.64|-212,405.21|
|ncome|||
|（I）Other comprehensive income|||
|items that will not be reclassified into|||
|gains/losses in the subsequent|||
|accounting period|||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|1.Re-measurement of defined benefit pl|||
|ans of changes in net debt or net assets|||
|2.Other comprehensive income under th|||
|e equity method investee can not be recl|||
|assified into profit or loss.|||
|（ II ）|||
|Other comprehensive income that will b|-1,338,011.64|-212,405.21|
|e reclassified into profit or loss.|||
|1.Other comprehensive income under th|||
|e equity method investee can be reclassi|||
|fied into profit or loss.|||
|2.Gains and losses from changes in fair|||
||-709,727.75|-59,143.98|
|value available for sale financial assets|||
|3.Held-to-maturity investments reclassif|||
|ied to gains and losses of available for s|||
|ale financial assets|||
|4.The effective portion of cash flow hed|||
|ges and losses|||
|5.Translation differences in currency fin|||
||-628,283.89|-153,261.23|
|ancial statements|||
|6.Other|||
|VI. Total comprehensive income|7,371,820.04|8,926,427.22|
|VII. Earnings per share：|||
|（I）Basic earnings per share|||
|(II)Diluted earnings per share|||

5. Consolidated Cash flow statement
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or|||
||255,065,638.60|332,997,897.84|
|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|||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|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|11,904,252.09|16,312,968.63|
|Other cash received from business|||
||30,675,645.79|27,659,546.06|
|operation|||
|Sub-total of cash inflow|297,645,536.48|376,970,412.53|
|Cash paid for purchasing of|||
||243,676,008.15|468,216,518.39|
|merchandise and services|||
|Net increase of client trade and|||
|advance|||
|Net increase of savings n central bank|||
|and brother company|||
|Cash paid for original contract claim|||
|Cash paid for interest, processing fee|||
|and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|41,183,931.63|37,100,889.42|
|Taxes paid|20,200,074.43|23,364,848.38|
|Other cash paid for business activities|27,849,096.12|34,063,115.30|
|Sub-total of cash outflow from|||
||332,909,110.33|562,745,371.49|
|business activities|||
|Cash flow generated by business|||
||-35,263,573.85|-185,774,958.96|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
||0.00||
|retrieving|||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|Cash received as investment gains|999,984.00|8,456,069.65|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and|2,000.00|230.00|
|other long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||
|Other investment-related cash received|515,781,261.16|1,450,000,000.00|
|Sub-total of cash inflow due to|||
||516,783,245.16|1,458,456,299.65|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets|137,216,482.28|107,695,577.41|
|and other long-term assets|||
|Cash paid as investment|||
|Net increase of loan against pledge|||
|Net cash received from subsidiaries|||
|and other operational units|||
|Other cash paid for investment|||
||810,000,000.00|1,365,003,820.51|
|activities|||
|Sub-total of cash outflow due to|||
||947,216,482.28|1,472,699,397.92|
|investment activities|||
|Net cash flow generated by investment|-430,433,237.12|-14,243,098.27|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Incl: Cash received as investment from|||
|minor shareholders|||
|Cash received as loans|95,971,462.72|17,429,437.87|
|Cash received from bond placing|||
|Other financing –related ash received|||
|Sub-total of cash inflow from financing|||
||95,971,462.72|17,429,437.87|
|activities|||
|Cash to repay debts|85,831,505.96|12,456,518.01|
|Cash paid as dividend, profit, or|||
|interests|||
|Incl: Dividend and profit paid by|||
|subsidiaries to minor shareholders|||
|Other cash paid for financing activities|184,487.96||
|Sub-total of cash outflow due to|86,015,993.92|12,456,518.01|

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|financing activities|||
|Net cash flow generated by financing|9,955,468.80|4,972,919.86|
|IV. Influence of exchange rate|||
|alternation on cash and cash|-1,014,369.39|-187,390.72|
|equivalents|||
|V.Net increase of cash and cash|||
||-456,755,711.56|-195,232,528.09|
|equivalents|||
|Add: balance of cash and cash|||
||1,161,240,139.33|930,114,436.57|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||704,484,427.77|734,881,908.48|
|equivalents at the end of term|||

6. Cash Flow Statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or|||
||16,719,611.00|16,476,892.65|
|rending of services|||
|Tax returned|||
|Other cash received from business|||
||4,054,432.86|2,938,581.55|
|operation|||
|Sub-total of cash inflow|20,774,043.86|19,415,474.20|
|Cash paid for purchasing of|||
||860,394.62|793,419.49|
|merchandise and services|||
|Cash paid to staffs or paid for staffs|5,619,694.30|4,778,841.65|
|Taxes paid|2,029,647.11|3,411,930.91|
|Other cash paid for business activities|1,775,182.86|1,548,739.26|
|Sub-total of cash outflow from|||
||10,284,918.89|10,532,931.31|
|business activities|||
|Cash flow generated by business|||
||10,489,124.97|8,882,542.89|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
|retrieving|||
|Cash received as investment gains|999,984.00|1,447,736.32|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and|||

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
||||
|-|-|-|
|other long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||
|Other investment-related cash received|||
|Sub-total of cash inflow due to|||
||999,984.00|1,447,736.32|
|investment activities|||
|Cash paid for construction of fixed|||
|assets, intangible assets|428,575.70|240,160.00|
|and other long-term assets|||
|Cash paid as investment|||
|Net cash received from subsidiaries|||
|and other operational units|||
|Other cash paid for investment|||
||10,000,000.00|70,000,000.00|
|activities|||
|Sub-total of cash outflow due to|||
||10,428,575.70|70,240,160.00|
|investment activities|||
|Net cash flow generated by investment|-9,428,591.70|-68,792,423.68|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|||
|Cash received from bond placing|||
|Other financing –related ash received|||
|Sub-total of cash inflow from|||
|financing activities|||
|Cash to repay debts|||
|Cash paid as dividend, profit, or|||
|interests|||
|Other cash paid for financing activities|||
|Sub-total of cash outflow due to|||
|financing activities|||
|Net cash flow generated by financing|||
|IV. Influence of exchange rate|||
|alternation on cash and cash|||
|equivalents|||
|V.Net increase of cash and cash|||
||1,060,533.27|-59,909,880.79|
|equivalents|||
|Add: balance of cash and cash|413,700,327.95|440,685,610.11|

Shenzhen Textile(Holdings) Co., Ltd. The First Quarterly Report 2018
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|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||414,760,861.22|380,775,729.32|
|equivalents at the end of term|||

II.Auditor’ report
Is the First Quarterly Report be audited?
□ Yes√No
The First Quarterly report is not audited.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd. April 27th ,2018