Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report Shenzhen Textile (Holdings) Co., Ltd.
2015 Annual Report
March 2016
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report I. Important Notice, Table of Contents and Definitions
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.
Mr.Zhu Jun, The Company leader, Mr. Zhu Jun, Chief financial officer and the Mr.Mu Linying, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this annual report.
Other directors attending the Meeting for annual report deliberation except for the followed:
|||||
|-|-|-|-|
|Name of director absent|Title for absent director|Reasons for absent|Attorney|
|Chao Jin|Director|Health reasons|Zhu Jun|

Concerning the forward-looking statements with future planning involvedin the Report, they do not constitute a substantial commitment for investors, investors should be cautious with investment risks .
The company to remind the majority ofinvestors，Securities Time, China Securities Journal, Securities Daily, Shanghai Securities News , Hongkong Commercial Daily and JuchaoWebsit（ehttp://www.cninfo.com.cn） are the media for information disclosure appointed by the Company, all information under the name of the Company disclosed on the above said media shall prevail, and investors are advised to exercise caution of investment risks. The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either. This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall prevail.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV.Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Financial Report
XI. Documents available for inspection
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report Definition
||||
|-|-|-|
|Terms to be defined|Refers to|Definition|
|Company/The Company/ Shen Textile|Refers to|Shenzhen Textile (Holdings) Co., Ltd|
|Articles of Association|Refers to|Articles of Association of Shenzhen Textile (Holdings) Co., Ltd|
|Actual controller / National Assets|||
|||National Assets Regulatory Commission of Shenzhen Municipal|
|Regulatory Commission of Shenzhen|Refers to||
|||People's Government|
|Municipal People's Government|||
|The Controlling shareholder/ Shenzhen|||
||Refers to|Shenzhen Investment Holding Co., Ltd.|
|Investment Holding Co., Ltd.|||
|Shenchao Technology|Refers to|Shenzhen Shenchao Technology Investment Co., Ltd.|
|Shengbo Optoelectronic|Refers to|Shenzhen Shengbo Optoelectronic Technology Co., Ltd.|
|Ntto Kogyo|Refers to|Ntto Kogyo Corporation|
|“CSRC”|Refers to|China Securities Regulatory Commission|
|Company Law|Refers to|Company Law of the People’s Republic of China|
|Securities Law|Refers to|Securities Law of the People’s Republic of China|
|The Report|Refers to|2015 Annual Report|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report II. Basic Information of the Company and Financial index
Ⅰ.Company Information
|||||
|-|-|-|-|
|||Shen Textile A ,Shen Textile||
|Stock abbreviation|Shen Textile A ,Shen Textile B||Stock code：|
|||B||
|Modified stock ID(if any)|N/A|||
|Stock exchange for listing：|Shenzhen Stock Exchange|||
|Name in Chinese|深圳市纺织(集团)股份有限公司|||
|Chinese abbreviation (If any)|深纺织|||
|English name (If any)|SHENZHEN TEXTILE （HOLDINGS） CO.,LTD.|||
|English abbreviation (If any)|STHC|||
|Legal Representative|Zhu Jun|||
|Registered address|6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen|||
|Postal code of the Registered||||
||518031|||
|Address||||
|Office Address|6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen|||
|Postal code of the office||||
||518031|||
|address||||
|Internet Web Site|http://www.chinasthc.com|||
|E-mail|szfzjt@chinasthc.com|||

Ⅱ.Contact person and contact manner
||||
|-|-|-|
||Board secretary|Securities affairs Representative|
|Name|Jiang Peng|Mo Xiayun|
||6/F, Shenfang Building, No.3 Huaqiang|6/F, Shenfang Building, No.3 Huaqiang|
|Contact address|||
||North Road, Futian District, Shenzhen|North Road, Futian District, Shenzhen|
|Tel|0755-83776043|0755-83776043|
|Fax|0755-83776139|0755-83776139|
|E-mail|jiangp@chinasthc.com|moxy@chinasthc.com|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual ReportⅢ. Information disclosure and placed
|||
|-|-|
|Newspapers selected by the Company for information|Securities Times, China Securities, Shanghai Securities Daily ,Securities|
|disclosure|Daily and Hongkong Commercial Daily.|
|Internet website designated by CSRC for publishing||
||http://www.cninfo.com.cn|
|the Annual report of the Company||
|The place where the Annual report is prepared and||
||Secretarial office of the Board|
|placed||

Ⅳ.Changes in Registration
|||
|-|-|
|Organization Code|19217374-9|
||In July 2012, The business scope of the company is changed to "production, textiles|
||processing, knitwear, clothing, upholstery fabrics, belts, trademark bands, handicrafts|
||(without restrictions); general merchandise, the special equipment of the textile|
|Changes in principal business activities|industry, textile equipment and accessories, instruments, standard parts, raw textile|
|since listing (if any)|materials, dyes, electronic products, chemical products, mechanical and electrical|
||equipment, light industrial products, office supplies and domestic trade (excluding the|
||franchise, the control and the monopoly of goods) ; operation of import and export|
||business." after approval of Shenzhen Market Supervisory Authority .|
||In October 2004,In accordance with the Decision on Establishing Shenzhen Investment|
||Holdings Co., Ltd. issued by State-owned Assets Administration Committee of|
||Shenzhen Municipal People's Government (Shen Guo Zi Wei (2004) No. 223|
|Changes is the controlling shareholder in||
||Document), Shenzhen Investment Management Co., Ltd., the controlling shareholder|
|the past (is any)||
||of the Company, and Shenzhen Construction Holding Company and Shenzhen|
||Commerce and Trade Holding Company merged into Shenzhen Investment Holdings|
||Co., Ltd.|

Ⅴ. Other Relevant Information
CPAs engaged
|||
|-|-|
|Name of the CPAs|Peking Certified Public Accountants（Special Geneaal Partnership）|
|Office address：|11/F, Zhongtang Building , No.110, Xihimen Street , Beijing|
|Names of the Certified Public||
||Xiao Yi , Lan Tao|
|Accountants as the signatiries||

The sponsor performing persistant supervision duties engaged by the Company in the reporting period.
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Sponsor name|Office address|Representatives|Period of supervision and guide|
||25/F, Tax-free Business|||
|Changjiang Financing||||
||Building, No.6, Fuhua No.1|Wang Qian, Su Jinhua|2013.3.26-2015.12.31|
|ServicesCo., Ltd.||||
||Road, Futian District ,|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||
|-|
|Shenzhen|

The Financial advisor performing persistant supervision duties engaged by the Company in the reporting period□ Applicable√ Not applicable
Ⅵ.Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to change of the accounting policy and correction of accounting errors.
□ Yes√ No
||||||
|-|-|-|-|-|
||||Changed over last year||
||2015|2014||2013|
||||（％）||
|Operating Gross income（RMB）|1,226,746,791.62|1,210,952,548.57|1.30%|1,131,098,580.37|
|Net profit attributable to the|8,497,227.40|-113,591,328.26|||
|shareholders of the listed company|||107.48%|47,222,590.97|
|（RMB）|||||
|Net profit after deducting of|||||
|non-recurring gain/loss attributable|||||
||-92,259,797.61|-148,855,363.05|38.02%|-161,473,020.61|
|to the shareholders of listed|||||
|company（RMB）|||||
|Cash flow generated by business|39,584,500.37|-48,701,494.05|||
||||181.28%|-186,726,206.07|
|operation, net（RMB）|||||
|Basic earning per|0.02|-0.22|||
||||109.09%|0.10|
|share(RMB/Share)|||||
|Diluted gains per|0.02|-0.22|||
||||109.09%|0.10|
|share(RMB/Share)(RMB/Share)|||||
|Net asset earning ratio（%）|0.39%|-5.06%|5.45%|2.31%|
|||End of|Changed over last year||
||End of 2015|||End of 2013|
|||2014|（％）||
|Gross assets（RMB）|2,969,394,978.70|2,884,531,917.28|2.94%|2,851,759,735.91|
|Net assets attributable to|2,174,569,545.55|2,196,249,248.26|||
|shareholders of the listed company|||-0.99%|2,297,846,577.11|
|（RMB）|||||

Ⅶ.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.
□ Applicable√ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report (International Accounting Standards) or Chinese GAAP(Generally Accepted Accounting Principles) in the period. 2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.
□ Applicable√Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.
Ⅷ.Main Financial Index by Quarters
In RMB
||||||
|-|-|-|-|-|
||First quarter|Second quarter|Third quarter|Fourth quarter|
|Operating income|302,735,429.91|318,257,903.57|322,076,321.92|283,677,136.22|
|Net profit attributable to the|||||
||4,339,711.63|3,328,316.32|-1,485,394.97|2,314,594.42|
|shareholders of the listed company|||||
|Net profit after deducting of|||||
|non-recurring gain/loss attributable|||||
||-19,099,161.16|-14,285,064.31|-13,045,798.66|-45,829,773.48|
|to the shareholders of listed|||||
|company|||||
|Net Cash flow generated by|||||
||42,290,099.22|-37,996,971.22|35,199,887.93|91,484.44|
|business operation|||||

Whether significant variances exist between the above financial index or the index with its sum and the financial index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes√No
Ⅸ.Items and amount of non-current gains and losses
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Items|Amount (2015)|Amount (2014)|Amount (2013)|Notes|
|Non-current asset disposal|-25,108.97||||
|gain/loss(including the write-off part for||52,281.62|211,668,888.86||
|which assets impairment provision is made)|||||
|Govemment subsidy recognized in|21,420,940.38||||
|currentgain and loss(excluding those closely|||||
|||16,688,387.98|15,060,086.51||
|related to the Company’s business and|||||
|granted under the state’s policies)|||||
|Gain arising from investment costs|||||
|for acquisition of subsidiaries, associates||3,897,638.73|||
|and joint-ventures by the corporation being|||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|less than its share of fair value of|||||
|identifiable net assets of the investees on|||||
|acquisition|||||
|Gain/loss from change of fair value of|88,006,690.51||||
|transactional financial asset and liabilities,|||||
|and investment gains from disposal of|||||
|transactional financial assets and liabilities||16,896,190.19|45,135,723.11||
|and sellable financial assets other than valid|||||
|period value instruments related to the|||||
|Company’s common businesses.|||||
|Switch back of provision for depreciation of|790,775.00||||
|account receivable which was singly taken||1,655,886.25|93,971.83||
|depreciation test.|||||
|Other non-operating income and expenditure|2,465,842.60||||
|||437,923.44|4,327,035.16||
|except for the aforementioned items|||||
|Less: Amount of influence of income tax|11,902,114.51|4,364,273.42|67,590,093.89||
|Total|100,757,025.01|35,264,034.79|208,695,611.58|--|

For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the 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 recorgnized as recurring gain /loss/itesm as defined by the information disclosure explanatory Announcement No.1- Non–recurring gain/loss in the report period.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report III. Outline of Company Business
Ⅰ.Main Business the Company is Engaged in During the Report Period
In 2015, the company's main business covered such the high and new technology industry as represented by LCD polarizer, its own property management business and the retained business of high-end textile and garment Polarizer is the upstream raw material for liquid crystal panel, also is one of the key materials for flat panel display industry, and it has been widely used in smart phones, liquid crystal display panel of tablet computers and TVs and so forth, OLED display panel, instrumentation, sun glasses, filter of photographic equipments and so on many fields. Thecompany’s five existing production lines of polarizer with mass production have products covered the fields such as TN, STN, TFT, OLED, 3D, dye plate, optical film for touch screen, and the products mainly used in TV, NB, navigator, monitor, automotive, industrial control, instrumentation, smart phones, wearable devices, 3D glasses, sunglasses and so forth products, becoming the qualified supplier to Huaxing Optoelectronic, BOE, Ivo, Shenchao Optoelectronic and so forth panel companies.
During the reporting period, on the one hand, thecompany’s production capacity of polarizer increased22.7% compared with the same period last year due to improvement of the existing production line speed and scientifically arrange the production schedule; on the other hand, in order to ensure the second phase of the project having good market prospect and the profitability, the company had carried out extensive market research, technical exchange and customer visits to optimize the original construction scheme and organized experts to verify the optimized scheme, then decided to continually carry forward the project construction of No.6 line, expanding the production scale of polarizer.
Upon the dual effects of the product line construction and the enormous downstream market, the core of the global display industry has speeded up the transfer to the Mainland China, thus Mainland China has become the investment hotspots for the global panel display industry. The panel display industry is one of the most important development projects listed in Medium and Long Term Development Outline for Information Industry form 2006 to 2020, and is also an industry encouraged by the country. In the future, the company will rely on more than 20 years of industrial operation experiences and location advantages to continually improve the technology level and cultivate the independent innovation ability and market development ability.
Ⅱ.Major Changes in Main Assets
1.Major Changes in Main Assets
|||
|-|-|
|Main assets|Major changes|
|Equity assets|No major chages|
|Fixed assets|No major chages|
|Intangible assets|No major chages|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
|Construction in process|No major chages|

2. Main Conditions of Overseas Assets
□ Applicable√Not applicable
Ⅲ.Analysis On core Competitiveness
(a) Technology advantages. Shengbo Optoelectronic is the first domestic national high-tech company which entered into theR&D and production of the polarizer, and it has more than 20 years of operational experience of the polarizer industry and has already mastered the core technology of TN, STN and TFT product fields, with the whole-set exclusive technology of the polarizer to meet the customer demands and independent intellectual property rights for various new products. By the end of the reporting period, the company applied for 63 invention patents and was authorized with 44 items, among which: 13 domestic invention patents(4 patents got authorized); 46 domestic utility model patents(38 patents got authorized); 1 overseas invention patent; 3 overseas utility model patents(2 patents got authorized). The company, possessing the two technology platforms “Shenzhen polarizing materials and engineering laboratory" and "Municipal research and development center", focused on theR&D and the industrialization of the core production technology of LCD polarizer, the developing and industrialization of the new products of OLED polarizer and the “domestication” research on the production materials of polarizer. Through the introduction of various types of sophisticated testing equipments to perfect the test means of small-scale test and medium-scale test, further by improving the incentive system of research and development and building the collaborative innovation platform of “Industry-Study-Research-Utilization” and so forth means, the company comprehensively enhanced the level of research and development.
(b) Talents advantages. The company has the management team and the senior technical team with strong technical ability, enduring cooperative spirit, rich experience and international vision on the polarizer. The company had engaged overseas technical personnel who have great experiences on advanced polarizer production and established the technology management team with its own technical team and complemented by engaging foreign technical personnel, and via the combination of independent innovation and technology providing by engaged foreign personnel to accumulate technology, which enabled the company to build such advantages as brand, technology and operating management advantages in the domestic polarizer bushiness, then shaped the whole-set exclusive technology combined with the characteristics of thecompany’s equipments and technical process for all kinds of products.
(c) Market advantages. The company has good customer groups not only in domestic market but in foreign market, compared with foreign advanced counterparts, the biggest advantage lies in the localization for supporting, close to the panel market, as well as the strong support of the national policy. As to the market development, centered in the production material control, extended to both ends to link the procurement and the market, established a rapid response mechanism, and supplemented by a series of value-added services to fully meet the needs of customers, with a stable supply chain, for further increasing the market share.
(d) Quality advantages. The company always adhered to the quality policy of "Satisfying customer demands and pursuing excellent quality" and focused on product quality control, thus the product quality has larger advantages compared with other similar-kind domestic companies. The company introduced a modern quality management
system, with the products passed the ISO9001 quality management system, ISO14001 environmental management
system, OHSAS18000, QCO80000 system certification and SGS testing, was in line with the ROHS
environmental protection requirements, and with standardized processes of raw materials supplying,
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report production-manufacturing, marketing, sales and customer services for ensuring the stability of the product quality. The company had increased the automatic detecting and marking equipments in the beginning section and the ending section, strictly controlled the product quality and improved the product utilization rate and product management efficiency.
(e) Management advantages. Shengbo Optoelectronic has accumulated rich management experiences in more than 20 years in the manufacturing of polarizer, possessing the home most advanced control technology of the production management process of the polarizer and quality management technology and the stable raw material procurement channel so forth management systems. The company had carried out comprehensive benchmarking work, organized the management personnel to learn advanced experiences from customers and peers to force the elevation of management ability, and drew on the foreigncompany’s management experiences of polarizer, optimized the company's organizational structure, reduced the managerial hierarchy and further enhanced the company's management efficiency.
(f) The policy advantage. Shenzhen Shengbo Optoelectronic, one of the first batch companies of color filter and polarizer included in the policy, enjoys the preferential tax policies of the new display industry and enjoys the exemption from import tariffs, such as self-consumed raw production materials which cannot produced domestically and the consumables. Meanwhile, the company enhanced the supplier management, perfected the overall procurement strategy, strictly controlled the quantity of the suppliers while drawing the competition mechanism in, focused on drawing in the potential materials with price competitiveness, further reduced the production costs and improved the product competitiveness.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report IV.Management’s Discussion and Analysis
Ⅰ.General
In 2015, due to the continuous fierce competitions in the polarizer market and the constant upgrade of the mainstream products and increasingly weak economic environment for traditional garment and textile industry and so forth adverse factors, the situation of the production and operation was very severe. Upon the goal of “Deepening the cooperation and Self-enhancement and Sparing no effort to reduce losses”, through raising the speed to release the production capacity, improving the technical process to reduce the losses, deeply exploring the market to develop the customer groups, promoting the equity transfer to support the industrial transformation, all kinds of indicators on thecompany’s operation had been obviously turned around.
In the year of 2015, the company achieved the operating revenue of RMB 1,226.7468 million, an year-on-year increase of1.3%; total profits of RMB 43.1517 million, an year-on-year increase of169.53%; net profits attributable to the owner of the parent company was RMB 8.4972 million, an year-on-year increase of107.48%. The main reasons were the sales of the available for sale financial assets and the transfer of18% stake of Shenzhen Tongyi Silk Co. Ltd held by thecompany’s subsidiary-Shenzhen Sheng Bo Optoelectronic Co.,Ltd, which led to an big year-on-year increase on investment income; meanwhile, the yield rate and utilization rate of the polarizer had a certain-extent of improvement and the losses of the polarizer business decreased compared with the same period of the last year.
Review of the company's key works carried out in 2015 as follows:
(a) Significantly improved the main business operation of the polarizer
In 2015, firstly, the company had been through its own efforts and the way that making cooperation with Li Te Optoelectronic, raised the speed of the production line, scientifically arranged the production schedule, enhanced the on-line monitoring and effectively improved the capability of the production line and the product yield rate; the second was adhering to the active and differentiated marketing strategy, timely making feedbacks to the key customers, following up and correcting the problematic products, deeply exploring the market potential, which resulted in new breakthroughs in the supplying to major customers; the third was to enhance the “domestication” transformation of the major equipments and enhance the overall equipment management and the transformation of the equipments for energy-saving, thus reduced the consumption and controlled the costs. In the reporting period, the revenue of thecompany’s polarizer business increased but the operating costs decreased, thus the losses was obviously reduced.
At the same time, the company strengthened the management of scientific research, developing new products according to thecustomers’ requirements. During the reporting period, a total of 27 R& D projects were set up, among which, the newly developed 48 Inch A04 model filled the blank area in the field of the domestic large-size polarizer. During the reporting period, the company had applied for and received the acceptance for 9 patents that included 2 invention patents and 7 utility model patents, and there were 2 patents got authorized. As of December 31, 2015, the company had applied for 63 patents and there were 44 patents got authorized, among which: there were 13 domestic invention patents (4 patents got authorized); 46 utility model patents (38 patents got authorized); 1 overseas invention patent; 3 overseas utility model patents (2 patents got authorized).
(b) The steady rise in the operating status of the property company
In 2015, thecompany’s property companies comprehensively promoted the openly leasing and the enhancement
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report work of raising the efficiency, thus the rental unit price in newly signed contracts increased in a certain extent; the company completed the final construction works such as outdoor matching project of Guan Hua Building that is thecompany’s property and completed the special acceptance and the preliminary test,what’s more, the building was pre listed in the Shenzhen United Property Exchange for leasing, resulted in good market response.
(c) Initially completed the planning work of the "13th Five-Year"
In 2015, based on reviewing and summarizing the development experiences and existing problems of the "Twelfth Five Year", the company seriously reckoned the development environment of the "13th Five-Year", with in accordance with the characteristics of the industry development and closely focusing on the development strategy of "Consolidating development, reform and making innovations and achieving better economies of scale", then the company initially completed the programming of The Strategic Development Planning of Shenzhen Textile Group for the "13th Five-Year" that specified thecompany’s development direction is firmly shaping a stronger and bigger polarizer business in the "13th Five-Year".
(d) Optimized and demonstrated the construction scheme of the second phase project for TFT-LCD polarizer In 2015, thecompany’s item that original planned by technical cooperation with Nitto Denko to produce Polaroid products and with intended alteration of the use of the raised funds for the second phase project of TFT-LCD polarizer was terminated. In order to ensure the good market prospect and the profitability of the second phase project, he company had carried out extensive market research, technical exchange, customer visits and carefully considered the latest situation of the industrial development to optimize the construction scheme of the second phase project for TFT-LCD polarizer and organized experts to demonstrate the optimized scheme, then decided to continually carry forward the project construction of No.6 line. Currently, the company has set up the construction team for No.6 line project, clarified the investment plan and the construction progress and completed the openly bidding for purchasing the main equipment and signed the relevant contract. Meanwhile, in light of there was a large funds gap between the actual raised funds and the planned raised funds, then by comprehensive consideration of thecompany’s production line scale and the operation pressure, the company planned to terminate the project of No.7 line, and the use of the corresponding funds for No.7 line project shall be changed to permanently add to the liquidity.
(e) Promoting the transfer of equity and supporting industrial transformation
In 2015, for fully supporting the development of the main business of polarizer and revitalizing the company's assets, by the unremitting efforts from the whole company, the company successfully completed the work of equity disposal of18% stake of Shenzhen Tongyi Silk Co. Ltd held by thecompany’s subsidiary-Shenzhen Shengbo Optoelectronic Co.,Ltd.
(f) Improving the appraisal mechanism of the salary system, strengthening the construction of the talent team In 2015, in order to encourage technological innovation, on the one hand, the company improved the appraisal and distribution system, in which the salary-incentive shall be inclined to staff for key researches and technical staff to fully embody the incentive and the fairness of the remuneration payment; on the other hand, the company established grade evaluation and engagement system for technical staff and carried out the technical appraisal and appointment work to fully mobilize the enthusiasm of technical personnel for creating conditions to attract and retain talents.
(g) Enhancing the safety in production and promoting the normalization of safety management
In 2015, the company continually propagated and implemented The New Safety Production Law, established and issued the Propaganda and Implementation Plan of the New Safety Production Law, further enhanced the training work on safety production. At the same time, the company continually carried out the “Implementation activity of the year of the safety production system” and the closed-loop management of hidden dangers rectification, and a
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report total of 236 hidden security risks were investigated and dealt with, with the rectification rate over98%, the company achieved the annual safety production goal.
Ⅱ.Main business analysis
1. General
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
2. Revenue and cost
(1)Component of Business Income
In RMB
|||||||
|-|-|-|-|-|-|
||2015||2014|||
||||||Increase /decrease|
||Amount|Proportion|Amount|Proportion||
|Total operating|1,226,746,791.62||1,210,952,548.57|||
|||100%||100%|1.30%|
|revenue||||||
|Industry||||||
|Domestic and||||||
||429,639,819.01|35.02%|418,662,598.31|34.57%|2.62%|
|foreign trade||||||
|Manufacturing|700,600,503.65|57.11%|697,875,210.57|57.63%|0.39%|
|Lease and||||||
|Management of|90,743,656.58|7.40%|88,681,033.81|7.32%|2.33%|
|Property||||||
|Other|5,762,812.38|0.47%|5,733,705.88|0.48%|0.51%|
|Products||||||
|Lease and||||||
|Management of|90,743,656.58|7.40%|88,681,033.81|7.32%|2.33%|
|Property||||||
|Textile|25,205,284.70|2.05%|36,871,877.02|3.04%|-31.64%|
|Polarizer sheet|803,719,803.87|65.52%|734,488,663.78|60.65%|9.43%|
|Trade|301,315,234.09|24.56%|345,177,268.08|28.51%|-12.71%|
|Other|5,762,812.38|0.47%|5,733,705.88|0.48%|0.51%|
|Area||||||
|Domestic|452,609,409.47|36.90%|433,336,598.45|35.78%|4.45%|
|Overseas|774,137,382.15|63.10%|777,615,950.12|64.22%|-0.45%|

(2)Situation of Industry, Product and District Occupying theCompany’s Business Income and Operating
Profit with Profit over10%
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report√ Applicable□Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|Increase/decrease|Increase/decrease|
|||||of revenue in the|of business cost|of gross profit|
||||Gross profit||||
||Turnover|Operation cost||same period of|over the same|rate over the same|
||||rate(%)||||
|||||the previous|period of|period of the|
|||||year(%)|previous year (%)|previous year (%)|
|Industry|||||||
|Domestic and|||||||
||429,639,819.01|423,199,182.16|1.50%|2.62%|1.97%|0.63%|
|foreign trade|||||||
|Manufacturing|700,600,503.65|690,228,637.37|1.48%|0.39%|-2.90%|3.34%|
|Lease and|||||||
|Management of|90,743,656.58|23,475,132.76|74.13%|2.33%|1.10%|0.31%|
|Property|||||||
|Products|||||||
|Lease and|||||||
|Management of|90,743,656.58|23,475,132.76|74.13%|2.33%|1.10%|0.31%|
|Property|||||||
|Textile|25,205,284.70|27,117,500.23|-7.59%|-31.64%|-10.05%|-25.82%|
|Polarizer sheet|803,719,803.87|787,302,128.29|2.04%|9.43%|4.60%|4.51%|
|Trade|301,315,234.09|299,008,191.01|0.77%|-12.71%|-12.85%|0.16%|
|Area|||||||
|Domestic|446,846,597.09|396,404,251.87|11.29%|4.50%|15.53%|-8.47%|
|Overseas|774,137,382.15|740,498,700.42|4.35%|-0.45%|-8.12%|7.99%|

 Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on latest onyear’s scope of period-end.
□ Applicable√Not applicable
(3)Whether theCompany’s Physical Sales Income Exceeded Service Income
√ Yes □ No
|||||||
|-|-|-|-|-|-|
|Classification|Items|Unit|2015|2014|Changes|
|||(0000’ square||||
||Sales||846.98|691.63|22.46%|
|||meters)||||
|||(0000’ square||||
|Polarizer sheet|Production||877.05|714.82|22.70%|
|||meters)||||
|||(0000’ square||||
||Stock||118.79|88.72|33.89%|
|||meters)||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||||
|-|-|-|-|-|-|
||Sales|0000’ pieces|164|157|4.46%|
|Knitted clothing|Production|0000’ pieces|167|169|-1.18%|
||Stock|0000’ pieces|54|51|3.92%|

 Explanation for a year-on–year change of over30%
√Applicable□ Not applicable
During the reporting period, the subsidiary, Shenzhen Shengbo Optoelectronic Technology Co., Ltd., has the increase in TV, EWV and NOR polarizers sold to panel manufacturers over the same period of last year.
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable√Not applicable
(5)Component of business cost
Industry and product classification
In RMB
||||||||
|-|-|-|-|-|-|-|
|||2015||2014|||
||||Proportion in the||Proportion in the|Increase/Decrease|
|Industry|Items||||||
|||Amount|operating costs|Amount|operating costs|(%)|
||||(%)||(%)||
|Domestic and|Polarizer sheet,||||||
|||423,199,182.16|37.04%|415,021,559.43|35.94%|1.97%|
|foreign trade|Textile||||||
||Polarizer sheet,||||||
|Manufacturing||690,228,637.37|60.41%|710,855,827.41|61.56%|-2.90%|
||Knitted clothing||||||
|Lease and|||||||
||Rental， Accom||||||
|Management of||23,475,132.76|2.05%|23,219,071.21|2.02%|1.10%|
||modation||||||
|Property|||||||

In RMB
||||||||
|-|-|-|-|-|-|-|
|||2015||2014|||
|Classification of|||||||
||||Proportion in||Proportion in|Increase/Decrease|
|products|Items||||||
|||Amount|operation|Amount|operation|(%)|
||||costs(%)||costs(%)||
|Polarizer sheet|Direct materials|556,833,603.63|48.74%|461,812,116.08|39.99%|20.58%|
|Polarizer sheet|Direct labor|37,928,773.59|3.32%|54,053,911.43|4.68%|-29.83%|
|Polarizer sheet|Power costs|36,800,389.29|3.22%|43,634,785.84|3.78%|-15.66%|
||Manufacturing||||||
|Polarizer sheet||155,739,361.77|13.63%|193,144,929.41|16.73%|-19.37%|
||costs||||||
|Knitted clothing|Direct materials|9,355,247.57|0.94%|13,167,470.51|1.14%|-28.95%|
|Knitted clothing|Direct labor|6,128,505.48|0.54%|7,223,027.50|0.63%|-15.15%|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Knitted clothing|Power costs|1,948,677.34|0.12%|1,524,251.84|0.13%|27.84%|
||Manufacturing||||||
|Knitted clothing||9,685,069.84|0.90%|8,233,176.54|0.71%|17.63%|
||costs||||||

(6)Whether Changes Occurred in Consolidation Scope in the Report Period
□Yes√ No
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in theCompany’s Report Period
□ Applicable√Not applicable
(8)Situation of Main Customers and Main Supplier
Information of theCompany’s top 5 customers
|||
|-|-|
|Total sales amount to top 5 customers (RMB)|835,192,823.01|
|Proportion of sales to top 5 customers in the||
||68.08%|
|annual sales(%)||

Information of theCompany’s top 5 customers
|||||
|-|-|-|-|
|No|Name|Amount9RMB)|Proportion(%)|
|1|Customer 1|318,888,124.08|25.99%|
|2|Customer 2|300,886,664.10|24.53%|
|3|Customer 3|141,768,566.85|11.56%|
|4|Customer 4|40,520,628.95|3.30%|
|5|Customer 5|33,128,839.03|2.70%|
|Total|--|835,192,823.01|68.08%|

 Other explanation :
√Applicable□Not applicable
There exists no the association relations between the top five suppliers and the company, and the directors, supervisors and senior management, core technical staff, shareholders with holding of more than5% stocks, actual controllers and other affiliated parties do not have direct or indirect equity of the major suppliers.
Principal suppliers
|||
|-|-|
|Total purchase of top 5 Suppliers（RMB）|534,056,563.76|
|Percentage of total purchase of top 5 suppliers In total||
||48.91%|
|annual purchase(%)||

Information about the top 5 suppliers
|||||
|-|-|-|-|
|No|Name|Amount（RMB）|Proportion|
|1|Supplier 1|296,940,863.66|27.19%|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|2|Supplier 2|75,552,796.42|6.92%|
|3|Supplier 3|61,352,505.60|5.62%|
|4|Supplier 4|53,754,323.72|4.92%|
|5|Supplier 5|46,456,074.36|4.26%|
|Total|--|534,056,563.76|48.91%|

 Other explanation :
√Applicable□Not applicable
There exists no the association relations between the top five suppliers and the company, and the directors, supervisors and senior management, core technical staff, shareholders with holding of more than5% stocks, actual controllers and other affiliated parties do not have direct or indirect equity of the major suppliers.
3.Expenses
In RMB
||||||
|-|-|-|-|-|
||||Increase/Decrea||
||2015|2014||Notes|
||||se(%)||
|Sale expenses|11,743,914.73|14,067,625.17||The main is to strengthen the control of|
||||-16.52%||
|||||transportation cost|
|Administration|103,044,704.30|119,496,105.45||Strict control of management costs,|
||||-13.77%||
|expenses||||reduce costs and expenses|
|Financial expenses|-24,448,318.10|-30,392,840.60||As the JPY exchange rate rise,|
||||19.56%|resulting in JPY denominated payables|
|||||increased foreign exchange losses.|

4.R& D Expenses
√Applicable □Not applicable
There were a total of 27R&D projects in the year, range from the optimization of the technical process of the production, plans of rawmaterials’ costs to the research and development of IPS products, small and medium size of OLED products and large-size TFT products. Up to now, the company basically completed theR&D goal set up in the beginning of the year, and such products as IPS had been recognized by many customers and those products had entered into the batch supply stage. During the reporting period, a total of 92 new products (counted by product type) had been successfully sold with signed contracts, which further enriched thecompany’s product category to meet the various market demands.
Situation of Research and Development Input by the Company
|||||
|-|-|-|-|
||2015|2014|Increase/Decrease(%)|
|Number of Research and||||
||98|113|-13.27%|
|Development persons (persons)||||
|Proportion of Research and||||
||7.66%|8.84%|-1.18%|
|Development persons||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|Amount of Research and||||
|Development Investment (In|30,867,294.24|55,070,970.28|-43.95%|
|RMB)||||
|Proportion of Research and||||
|Development Investment of|2.52%|4.55%|-2.03%|
|Operation Revenue||||
|Amount of Research and||||
|Development Investment|0.00|0.00|0.00%|
|Capitalization (In RMB)||||
|Proportion of Capitalization||||
|Research and Development||||
||0.00%|0.00%|0.00%|
|Investment of Research and||||
|Development Investment||||

The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the Business Income Year on Year
√Applicable□Not applicable
The total R& D investment in 2015 accounted for the proportion of the operating income declined when compared with 2014, which mainly due to the enhancement on control ofR&D expenses and using free samples provided by suppliers in the development stage and seeking alternative raw materials.
Explanation of the Reason for Substantial Changes in the Research and DevelopmentInput’s Capitalization Rate and Its Reasonableness
□ Applicable√ Not applicable
5.Cash Flow
In RMB
|||||
|-|-|-|-|
|Items|2015|2014|Increase/Decrease(%)|
|Subtotal of cash inflow received|1,411,832,217.48|1,378,284,193.13||
||||2.43%|
|from operation activities||||
|Subtotal of cash outflow|1,372,247,717.11|1,426,985,687.18||
|received from operation|||-3.84%|
|activities||||
|Net cash flow arising from|39,584,500.37|-48,701,494.05||
||||181.28%|
|operating activities||||
|Subtotal of cash inflow received|125,106,336.14|327,482,005.36||
||||-61.80%|
|from investing activities||||
|Subtotal of cash outflow for|507,193,753.16|148,919,307.85||
||||240.58%|
|investment activities||||
|Net cash flow arising from|-382,087,417.02|178,562,697.51||
||||-313.98%|
|investment activities||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|Subtotal cash inflow received|244,759,302.00|160,096,040.10||
||||52.88%|
|from financing activities||||
|Subtotal cash outflow for|256,361,490.38|135,821,591.36||
||||88.75%|
|financing activities||||
|Net cash flow arising from|-11,602,188.38|24,274,448.74||
||||-147.80%|
|financing activities||||
|Net increase in cash and cash|-349,573,483.42|154,318,407.34||
||||-326.53%|
|equivalents||||

Notes to the year-on-year change of the relevant data
√Applicable□ Not applicable
（1）The net cash flows from operating activities increased by RMB88.286 million and181.28% year on year mainly due to Sales growth of cash received Polaroid products, through strengthening the raw material procurement and utilization management, reduced cash outflows due to the purchase of goods;
（2）The net cash flows from investing activities decreased by RMB2023757 million and61.8% year on year mainly due to structured deposits reduced principal and income received Over the previous period;
（3）Subtotal of cash out-flow from investment activity increased by RMB358.27 million and52.88% year on year;
（4）The net cash flows from financing activities increased by RMB84.6633 million and84.58% year on year, Mainly for the increase in cash obtained from loan compared with the priorperiod；
（5）The net cash out-flow from financing activities increased by RMB120.5399 million and88.75% year on year, Mainly for the increase indebt’s repayment compared with the prior period.
Notes to the big difference between cash flow from operating activities and net profit in the reporting year□Applicable√Not applicable
Ⅲ.Analysis of Non-core Business
√ Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|||Proportion in total|||
||Amount||Explanation of cause|Sustainable (yes or no)|
|||profit|||
||||Disposal of the investment||
||||income obtained from||
|Investment incme|94,812,557.58|219.72%||No|
||||available-for-sale financial||
||||assets||
||||Loss on inventory valuation,||
||||impairment loss on||
|Impairment of|||long-term equity investment,||
||61,792,990.95|143.20%||No|
|assets|||loss on goodwill||
||||impairments and loss on bad||
||||debts.||
|Non-operating|24,122,339.62|55.90%|Mainly for the amortization|Yes|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|income|||of governmental subsidy||
||||related with asset||
|Non-operating|||||
||260,665.61|0.60%||No|
|expenses|||||

Ⅳ.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of 2015||End of 2014||Proportio||
|||Proportion in||Proportion in|n||
|||||||Notes to the significant change|
||Amount|the total|Amount|the total|increase/d||
|||assets(%)||assets(%)|ecrease||
||752,314,871.53||1,101,771,561.28|||Mainly caused by the investment of|
|Monetary fund||25.34%||38.20%|-12.86%||
|||||||structural deposit.|
|Accounts|182,766,372.05||156,123,570.35|||Mainly caused by the increase in|
|||6.16%||5.41%|0.75%||
|receivable||||||receivables during the credit period|
||308,775,044.88||230,659,122.24|||Mainly caused by the increase in the|
|Inventories||10.40%||8.00%|2.40%|inventory of Shengbo Optoeletronic’s|
|||||||polarizer|
|Investment real|134,389,963.05||140,905,275.45||||
|||4.53%||4.88%|-0.35%||
|estate|||||||
|Long-term equity|22,879,269.06||20,795,057.33||||
|||0.77%||0.72%|0.05%||
|investment|||||||
||790,019,487.16||824,871,367.33||||
|Fixed assets||26.61%||28.60%|-1.99%||
|Construction|75,803,586.70||79,822,149.34||||
|||2.55%||2.77%|-0.22%||
|inprocess|||||||
||53,866,521.87||24,676,594.72|||Mainly caused by the increase of the|
|Short-term loans||1.81%||0.86%|0.95%||
|||||||capital flow loan at the current period|
||120,000,000.00||124,653,863.70||||
|Long-term loans||4.04%||4.32%|-0.28%||

2.Asset and Liabilities Measured by Fair Value
√ Applicable□Not applicable
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Amount at yearbeginning|Gain/loss on|Cumulative fair|Impairment|Purchased|Sold amount in|Amount at|
|Item||fair value|value change|provisions in|amount in the|the reporting||
||||||||year end|
|||change in the|recorded into|the reporting|reporting|period||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|||reporting|equity|period|period||
|||period|||||
|Financial assets|||||||
|3.|||||||
|Avaliable-for-sa||||||10,054,476.6|
||52,605,249.65||3,045,914.97||||
|le financial||||||0|
|assets|||||||
|Subtotal of||||||10,054,476.6|
||52,605,249.65||3,045,914.97||||
|financial assets||||||0|
|||||||10,054,476.6|
|Total|52,605,249.65||3,045,914.97||||
|||||||0|
|Financial|||||||
||0.00||0.00|||0.00|
|Liability|||||||

Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes√ No
Ⅴ.Investment situation
1. General
□Applicable√Not applicable
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□Applicable√Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable√ Not applicable
4.Investment of Financial Asset
（1）Securities investment
√ Applicable□Not applicable
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Book|Changesin fairvalue ofthe thisperiod|Cumulat|Purchas|Saleamountin thethisperiod||Book|||
|||||Mode of||||||||||
||||||value||ive fair|e||Gain/los|value|||
|||Stock|Initial|accounti||||||||Account|Source|
|Security|Security||||balance||value|amount||s of the|balance|||
|||Abbrevi|investm|ng||||||||ing|of the|
|category|code||||at the||changes|in the||reportin|at the|||
|||ation:|ent cost|measure||||||||items|shares|
||||||beginni||in|this||g period|end of|||
|||||ment||||||||||
||||||ng of||equity|period|||the|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||the||||||reportin|||
||||||reportin||||||g period|||
||||||g period|||||||||
|||||||||||||Financia||
|Domesti||||||||||||||
|||||||||||||l assets|Debt eq|
|c and|||8,940,5||8,329,4||835,408|||98,573.|10,054,|||
||000030|Fawer||FVM||0.00||0.00|0.00|||availabl|uity|
|foreign|||98.31||43.85||.72|||30|476.60|||
|||||||||||||e for||
|stocks||||||||||||||
|||||||||||||sale||
|||||||||||||Financia||
|Domesti||VICTO||||||||||||
|||||||||||||l assets||
|c and||R|2,050,1||44,275,||||46,395,|44,345,|||Legal|
||000018|||FVM||0.00||0.00|||0.00|availabl||
|foreign||ONWA|24.86||805.80||||738.95|614.09|||shares|
|||||||||||||e for||
|stocks||RD||||||||||||
|||||||||||||sale||
||||10,990,||52,605,||835,408||46,395,|44,444,|10,054,|||
|Total||||--||0.00||0.00||||||
||||723.17||249.65||.72||738.95|187.39|476.60|||
|Disclosure date for the||||||||||||||
|notice of approval by the|||January 17,2015|||||||||||
|Board (If any)||||||||||||||
|Disclosure date for the||||||||||||||
|notice of approval by||||||||||||||
||||February 4,2015|||||||||||
|shareholders’ Meeting (If||||||||||||||
|any)||||||||||||||

（2）Investment in Derivatives
□ Applicable√ Not applicable
N/A.
5.Application of the raised capital
√ Applicable□ Not applicable
（1）General application of the raised funds
√ Applicable□ Not applicable
InRMB’0000
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||Amount of|Accumulat|Proportion|Total|Use and|Amount of|
||||Total||||||||
|||||Total|raised|ive amount|of raised|Amount of|Whereabo|the Raised|
|||Total|Amount of||||||||
|Year of|Way of|||amount of|capital of|of raised|capital of|the|uts of the|Fund with|
|||raised|the Raised||||||||
|Raising|Raising|||Raised|which the|capital of|which the|Unused|Unused|over 2|
|||capital|Fund Used||||||||
|||||Funds|purpose|which the|purpose|Raised|Raised|Years’|
||||at the||||||||
||||||was|purpose|has been|Fund at|Fund|Idling|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||changed in|has been|changed|the|||
||||||the report|changed|(%)|Current|||
||||||period|||Period|||
||||||||||Yet the||
||||||||||balance of||
||||||||||the raised||
||||||||||funds is||
||||||||||RMB||
||||||||||841.0932||
||||||||||million(not||
||||||||||including||
||||||||||the amount||
||||||||||of RMB||
||||||||||150||
||||||||||million||
||||||||||temporaril||
||||||||||y added to||
||||||||||liquidity),||
||||||||||after||
||Non-publi||||||||deducting||
|2013||96,175.1|69.71|1,851.9|0|0|0.00%|84,109.32||0|
||c issue||||||||the funds||
||||||||||required||
||||||||||for the No.||
||||||||||6 line||
||||||||||project||
||||||||||constructio||
||||||||||n, the||
||||||||||remaining||
||||||||||funds was||
||||||||||planned to||
||||||||||permanentl||
||||||||||y add to||
||||||||||liquidity||
||||||||||for the||
||||||||||company's||
||||||||||main||
||||||||||business.||
|Total|--|96,175.1|69.71|1,851.9|0|0|0.00%|84,109.32|--|0|
|Notes to use of raised capital|||||||||||
|During the reporting period, Shengbo Optoelectronic fund-raising accounts of expenditure RMB 0.6971 million all for Phase-II|||||||||||
|project of polarizer sheet for TFT-LCD As of the reporting period, the total investment RMB18.5190 million investment schedule|||||||||||
|1.93%.|||||||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report（2）Promised projects of raised capital
√ Applicable□ Not applicable
InRMB’0000
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Date||||
||||||Accumul|Investme|||||
||||||||when the||||
|||Total|||ated|nt||||Has any|
||Project||Total|Amount|||project|Benefit|||
|||raised|||amount|progress|||Has the|material|
||changed(i||investme|inested in|||has|realized|||
|Committed investment||capital|||invested|ended the|||predicted|change|
||ncluding||nt after|the|||reached|in the|||
|projects and investment||invested|||at the end|reporting|||result be|taken|
||partial||adjustme|reporting|||the|reporting|||
|||as|||of the|period(%|||realized|place in|
||change)||nt (1)|period|||predicted|period|||
|||commited|||reporting|)(3)=(2)(||||feasibility|
||||||||applicabl||||
||||||period(2)|1)|||||
||||||||e status||||
|Committed investment projects|||||||||||
|Phase-II|||||||||||
||||||||July 2,||||
|project of polarizer|No|96,175.1|96,175.1|69.71|1,851.9|1.93%||0|--|Yes|
||||||||2017||||
|sheet for TFT-LCD|||||||||||
|Subtotal of committeed|||||||||||
||--|96,175.1|96,175.1|69.71|1,851.9|--|--|0|--|--|
|investment projects|||||||||||
|Investment orientation for und arising out of plan|||||||||||
|No|||||||||||
|Total|--|96,175.1|96,175.1|69.71|1,851.9|--|--|0|--|--|
||The “Cooperation Framework Agreement” signed on the cooperation in polarizer between the company||||||||||
||and Ntto Kogyo has been submitted to the first Provisional general meeting for examination in 2014. At||||||||||
||that time, Shenzhen Investment Holdings Co., Ltd., the controlling shareholder of the company, is||||||||||
||transferring partial equity of the company by way of the open collection of transferee, the controlling||||||||||
||shareholder considers that it is inappropriate to examine the major issues and makes waiver to vote. Thus,||||||||||
|Situation about not|||||||||||
||the agreement was not approved. The original plan on the purpose to fund-raising of Project II of polarizer||||||||||
|coming up to schemed|||||||||||
||with TFT-LCD hasn’t been approved. Thereafter, based on the previous technical cooperation negotiations||||||||||
|progress or expected|||||||||||
||between the company and Nitto Denko, in order to establish closer relations of cooperation, then both sides||||||||||
|revenue and the reason|||||||||||
||carried out multi rounds of discussions and negotiations for the new way of cooperation and cooperation||||||||||
|( in specific project0|||||||||||
||program, but did not reach a consensus. In view of the reality that the Framework Agreement on||||||||||
||Cooperation cannot be achieved, the company signed the Termination Contract on the Agreement with||||||||||
||Nitto Denko on Feb 3, 2015 after consultation. At the same time, the company’s item that original planned||||||||||
||by technical cooperation with Nitto Denko to produce Polaroid products and with intended alteration of the||||||||||
||use of the raised funds for the original project was terminated. （Announment No.2015-08）.||||||||||
||According to the latest situation of the industry development, the company optimized the original||||||||||
||construction plan for the second-phase project of TFT-LCD polarizer, and then according to the results||||||||||
|Notes to significant|||||||||||
||concluded by the experts, the company decided to continue to promote the construction of the No.6 line||||||||||
|change in feasibility of|||||||||||
||project. At the same time, in light of there was a large funds gap between the actual raised funds and the||||||||||
|the project|||||||||||
||planned raised funds, then by comprehensive consideration of the company’s production line scale and the||||||||||
||operation pressure, the company planned to terminate the project of No.7 line, and the corresponding||||||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
||amount of funds of RMB309,272,200 for No.7 line project changed to permanently add to the liquidity.|
|Amount, application|Not applicable|
|and application||
|progress of the||
|unbooked proceeds||
|About the change of|Not applicable|
|the implementation site||
|of the projects invested||
|with the proceeds||
|Adjustment of the|Not applicable|
|implementation way of||
|investment funded by||
|raised capital||
|About the initial|Not applicable|
|investment in the||
|projects planned to be||
|invested with the||
|proceeds and the||
|replacement||
||Applicable|
||On March 27, 2015, the 13th meeting of the sixth board of directors examined and adopted the Proposalfor Supplementing Working Capital with Part of Idle Raised Proceeds. It was approved to use RMB 300million unused raised funds for the liquidity, using the period from the date of approval by the Board ofdirectors not more than 12 months since being added, the specific date is from March 27, 2015 to March26, 2016, trasfered raise funds RMB 120 million from the account containning Shengbo Optoelectronic foradditional liquidiry on March 27, 2015, trasfered raise funds RMB 30 million from the accountcontainning Shengbo Optoelectronic for additional liquidiry on December 18,2015. As of December31,2015,Use of idle funds RMB 150 million from the account containning Shengbo Optoelectronic foradditional liquidiry.|
|Using the idle proceeds||
|to supplement the||
|working capital on||
|temporary basis||
|Balance of the|Not applicable|
|proceeds in process of||
|project implementation||
|and the cause||
||As of December 31, 2015, the balance of the raised funds was RMB 841.0932 million (not including the|
|About application and||
||amount of RMB 150 million temporarily added to liquidity), after deducting the funds required for the No.|
|status of the proceeds||
||6 line project construction, the remaining funds was planned to permanently add to liquidity for the|
|unused||
||company's main business.|
|Problems existing in||
|application of the|Non -existent|
|proceeds and the||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||
|-|
|information disclosure|
|or other issues|

（3）Changes of raised funds projects
□ Applicable√ Not applicable
There is no change in raised funds in company reporting period.
Ⅵ.Significant Asset and Right Offering
1.Situation of Significant Asset Sale
□ Applicable√ Not applicable
N/A.
2.Situation of Substantial Stake Sale
√ Applicable□ Not applicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Proporti||||||||
|||||||on on of||||||||
|||||Net||||||||||
|||||||the net||||||||
|||||profits|||||||Whether|||
|||||||profits||||||||
|||||contribu|||||||execute|||
|||||||of the||||||||
|||||ted by||||||Whether|as|||
|||||||contribu||||||||
|||||the||||||the|schedul|||
|||||||ted||||||||
|||||equities||||||involve|ed and|||
||||||Influenc|amount||||||||
||||Transact|to the|||Pricing|Whether|Relation|d|if failed,|||
||||||e of the|of the||||||||
||||ion|listed|||princial|was the|ship|equities|should||Disclos|
|Counter|Sold|Sold|||selling|equities||||||Disclos||
||||price(R|compani|||es of the|related|with the|all|state the||ure|
|party|equities|date|||of the|selling||||||ure date||
||||MB’000|es from|||equities|transacti|conter|complet|reasons||Index|
||||||Compan|to the||||||||
||||0)|the|||selling|on|party|ed the|and the|||
||||||y|listed||||||||
|||||period-b||||||ownersh|adopted|||
|||||||compani||||||||
|||||egin to||||||ip|measure|||
|||||||es to the||||||||
|||||the sold||||||transfer|ments of|||
|||||||total||||||||
|||||date|||||||the|||
|||||||amo9un||||||||
|||||(RMB’0|||||||cmpany|||
|||||||t of the||||||||
|||||000)||||||||||
|||||||net||||||||
|||||||profits||||||||
|Shenzhe|Equity||||Complet||The||||Implem||Announ|
|n|18% of|Decemb|||ed gains||carrying||No||ent|Decemb|cement|
||||4,552.0|||497.71||||||||
|Fenghui|Shenzhe|er 29,||55.8|RMB42.||amount|No|relations|No|accordin|er 18,|on the|
||||3|||%||||||||
|run|n|2015|||2919||of the||hip||g to|2015|Result|
|Investm|Tongyi||||million.||net||||plan||of the|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|ent Co.,|Silk|bringing|assets|Transfer|
|ltd.|Co.,|about|was|of 18%|
||Ltd.|impact|RMB|Stake of|
|||to an|45.5203|Shenzhe|
|||extent|million|n|
|||on 2015|accordin|Tongyi|
|||annual|g to the|Silk Co.|
|||perform|evaluati|Ltd|
|||ance.|on on|Held by|
||||the base|the|
||||date of|Compan|
||||Sep 30,|y’s|
||||2015,|Subsidia|
||||which|ry-Shen|
||||also|zhen|
||||determi|Sheng|
||||ned the|Bo|
||||price,|Optoele|
||||and the|ctronic|
||||evaluati|Co.,Ltd|
||||on value|issued|
||||was the|on|
||||listing|Cninf.|
||||price||
||||which||
||||openly||
||||listed||
||||for||
||||transfer||
||||on the||
||||Shenzhe||
||||n United||
||||Property||
||||Rights||
||||Exchan||
||||ge from||
||||Nov 19,||
||||2015 to||
||||Dec 16,||
||||2015.||

□ Applicable√ Not applicable
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual ReportⅦ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable□ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over10% net profit influencing to the Company In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Company||Sectors|Registered||||Operating||
||Company type|||Total assets|Net assets|Turnover||Net Profit|
|Name||engaged in|capital||||profit||
|Shenzhen|||||||||
|Lisi||Domestic|||||||
|||||26,082,375.6|22,328,586.3||||
|Industrial|Subsidiary|trade, Lease|2360000|||7,344,530.84|4,006,895.35|3,339,547.05|
|||||0|0||||
|Development|||||||||
|Co., Ltd.|||||||||
|Shenzhen||Accommodat|||||||
|||||29,611,849.1|23,221,343.8|10,599,958.3|||
|Huaqiang|Subsidiary|ion, business|10005300||||2,666,974.53|2,037,698.94|
|||||2|2|4|||
|Hotel||center;|||||||
|Shenfang|||||||||
|Property||Property||||10,063,591.1|||
||Subsidiary||1600000|9,998,217.61|2,530,936.18||343,003.96|237,474.95|
|Management||management||||6|||
|Co., Ltd.|||||||||
|||Production of|||||||
|Shenzhen|||||||||
|||fully|||||||
|Beauty|||||||||
|||electronic||43,342,324.8|29,358,135.3|28,571,862.5|-6,242,933.1|-6,001,151.9|
|Century|Subsidiary||25000000||||||
|||jacquard||2|2|0|8|9|
|Garment Co.,|||||||||
|||knitting|||||||
|Ltd.|||||||||
|||whole shape|||||||
|Shenzhen|||||||||
|Shengbo||Production|||||||
|||||2,034,656,33|1,296,498,01|806,524,649.|-59,740,845.|-38,651,601.|
|Opotoelectric|Subsidiary|and sales of|300000000||||||
|||||2.50|8.34|99|91|10|
|Technology||polarizer|||||||
|Co., Ltd|||||||||
|Shenzhen|||||||||
|||Operating|||||||
|Shenfang|||||||||
||Sub-|import and||47,140,509.2||301,315,234.|||
|Import &|||5000000||6,461,595.60||765,597.28|658,645.95|
||Subsidiary|export||6||09|||
|export Co.,|||||||||
|||business|||||||
|Ltd.|||||||||
|Shengtou|||||||||
||Sub-|Sales of||76,981,765.6||418,483,421.|||
|（HK）Co.,|||HKD10000||1,188,706.90||37,180.79|-427,335.99|
||Subsidiary|polarizer||8||90|||
|Ltd.|||||||||

Acquirement and disposal of subsidiaries in the Reporting period
□ Applicable√ Not applicable
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual ReportⅧ.Special purpose vehicle controlled by the Company
□ Applicable√ Not applicable
Ⅸ.Prospect for future development of the Company
1. The Development Trend of the Industry
In recent years, along with the global tendency of making large-size TFT-LCD panel, upon the improvement of the display technology and such factors as high resolution, wide viewing angle, touch application, lighter appearance brought by pluralism of products application, the momentum of global TFT-LCD industry development is strong. Upon the dual effects of the product line construction and the enormous downstream market, the core of the global display industry has been speeded up for the transfer to the Mainland China. Meanwhile, the Mainland China has been the big country in consumption of global electronic products, in which demands and supplies are strong, thus provided a great market opportunity for further developing the panel display industry.
From 2015 to 2018,it’s expected that 14 panel production lines shall be put into operation early or late in Mainland China. In 2016, the high-generation above generation-6 production lines in Mainland China will reach 13 lines, and in year 2018, it will reach 21 lines, among which, the high-generation above generation-8.5 lines will reach 12 lines, thus the panel production capacity will exceed 100 million square meters, the production lines and the production capacity in China will both rank first in the world. Along with the increasingly growth of the panel output, it will boost the growth of the matching components for the panel, such as the polarizer and other related matching industries.
At present, the major global suppliers for the polarizer included Nitto Denko, Sumitomo Chemical, LG Chemical, SDI, Chimei materials and BenQ materials. Among them, Nitto Denk, Sumitomo Chemical and LG chemical are ahead of other vendors in the market share with obvious advantages.
Along with the rapid development of the flat panel display industry in Mainland China, the overseas larger polarizer manufacturers, such as LG Chemical, SDI, Chimei materials, have set up factories in Mainland China in succession. Besides, the domestic polarizer manufacturers have speeded up the pace of development, and the downstream and upstream companies also waited for the opportunity to carry out the industrial integration through building the polarizer production line. From 2016 to 2018, along with newly established polarizer production lines that put into operation in succession, the industrial layout of the polarizer industry in Mainland China will have a significant change.
In 2014, the National Development and Reform Commission and the Ministry of Information Technology jointly issued "2014-2016 New Display Industry Innovation and Development Action Plan". The Action Plan pointed out that by 2016, the systematic supporting industry of new display will be possibly completed, which will make the ratio of key matching materials for panel of small and medium size TFT-LCD reaching to60% and the ratio of key matching materials for panel of large size TFT-LCD and AMOLED reaching to30%. The polarizer is one of the indispensable key materials for TFT-LCD and AMOLED panel, however, currently the matching rate by domestic products are far less than30% which below the industrial safety value. Hence, whether from the policy perspective or the market prospective, there was a huge space for the domestic development of the polarizer, meanwhile, thecompany’s reasonable industrial layout of the polarizer would enable thecompany’s overall operating status get continuous improvement.
2.The company's development strategy
The company as the first domestic professional manufacturer of the polarizer committed to theR&D, production
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report and technology service of the polarizer for the long-term. In the future, the company will continue to focus on the polarizer field, combine with national industry development planning, seize the market opportunity, utilize its own advantages, boldly draw on the home and foreign advanced technology and management methods, speed up the pace of cooperation with foreign parties, deepen the reform, keep on innovations and continuously improve thecompany’s technology level to make the company further advanced towards the strategic goal of being a leading company in innovation and technology for providing display solutions and fast supporting services.
According to the "Made in China 2025" plan, China will focus on the strategy of upgrading the manufacturing sector. As the display industry is the important part for the electronic information industry, so that it will be greatly encouraged by the national policy. The company would continuously improve and perfect the human resource system to build up management personnel and technical personnel echelon which is in line with the focus of transformation and elevation of the company, and the company strongly pushed forward the reform and innovation, continuously enriched the product range, elevated the technical quality and technical process level and by means of the professional development and large-scale of operation to increase thecompany’s profitability and raise the overall competiveness.
3.Possible risks
The period from 2015 to 2018 is the golden age for the newly built high-generation production lines put into operation in the Mainland China and there will be 14 construction-in-progress high generation above generation-6 panel production lines put into operation.It’s expected that by the year of 2018, the LCD panel production capacity in Mainland China will be more than 100 million square meters, among which, the panel production capacity of high-generation above genenation-8.5 will exceed 85 million square meters, thus the production quantity and production capacity of the high-generation TFT-LCD panel will both rank first in the world. Due to the maturity of the industry chain was not balanced, the development of matching industries were lagged behind the panel industry. According toDisplaySearch’s research data, the domestic matching rates for the substrate glass, liquid crystal materials, target materials and the polarizer those are the key materials in the upstream TFT-LCD industry respectively were only3%,5%,2% and9%. While facing the huge demand for the polarizer in the coming years, the overseas polarizer manufacturers, such as LG Chemical, SDI, Chimei materials, had set up factories in Mainland China in succession. Besides, the domestic polarizer manufacturers had speeded up the pace of development, and the downstream and upstream companies also waited for the opportunity to carry out the industrial integration through building the polarizer production line, thus the industrial layout of the polarizer industry in Mainland China will have a significant change with increasingly fierce competition. Meanwhile, due to the characteristic of the terminal display product that upgraded fast, there are higher request for the quick response ability on technology and products, and the declining trend on the product price will constantly squeeze the profit margins for the upstream polarizer industry.
Globally, in recent years, the market of the polarizer almost reaches the equilibrium of market supply and demand and the supply slightly exceeds the demand. However, along with the gradual completion of the high-generation panel production lines and the enhancement of the existing production capacity, the situation of short supply will be gradually presented in some regions especially in Mainland China. Only calculated from the high generation above generation-8.5 panel production lines, the demand of the polarizer will be more than 160 million square meters. Thecompany’s advantages, such as technology advantage, talents advantage, market advantage, quality advantage, management advantage and policy advantage, accumulated in more than 20 years, which would enable thecompany’s customer groups not only in the original low and medium-end panel companies but extended to large-scale, high-end panel companies. In the past two years, by virtue of its own efforts and the way that doing cooperation with overseas polarizer companies and so forth, the company further improved the operation level, thus the product quality and stability had been further improved. In the future, by means of promoting the
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report production line construction, strengthening the internal resource integration and external cooperation and so forth, the company will have a more rapid and robust development.
4..The key work in 2016
(1). Continuously enhancing the operating capacity for the polarizer business
The first is to stabilize the existing customers, actively develop new customers and map out the layout planning of the polarizer market in advance; the second is to utilize the R& D center to support and guarantee the production technology, innovate the incentive mechanism, inspire the enthusiasm of R& D and try the best to do the new product development and reserve; the third is to continue to optimize the technology for No. 4 line, raise the productivity and reduce the loss by means of the equipment transformation and raising the production speed and so forth measures; the fourth is to adjust the product structure, deeply dig the potential of line 1-3, increase the revenue and raise the efficiency, comprehensively enhancing the operating capacity for the polarizer business. (2). Ensuring the stability and growth of the company's other businesses
Property companies will focus on the rental rate and capital recovery rate, continuously carry out the enhancement plan for property leasing and raise the rent income; All the final acceptance of the Guan Hua Building project and its relevant leasing work will be completed in the first half of the year, so as to generate benefits as soon as possible; the industrial and trade enterprises will focus on strengthening the internal management, adjusting the product structure, improving the technical process of the production, exploring the new sales pattern and realizing reducing losses.
(3). Fully promoting the construction of the No. 6 line project
Upon carefully summarizing the experience and lessons of the construction of the first phase project of the polarizer, then speed up the second phase project construction of the No.6 line, ensuring the completion of the established investment plans and progress.
(4). Completing the establishment of the “13th Five-Year " strategic planning
Continually to demonstrate and improve the company's central task, the business planning objectives and key investment project plans of the “13th Five-Year” for establishing the “13th Five-Year” strategic planning, shaping the action guideline to support thecompany’s development in the next five years.
(5). Strengthening the management of innovation and nurturing the core team
Strengthen then market awareness, enhance the technological innovation and the business model innovation, and reinforce thecompany’s core competitiveness. Directional cultivate the talents, continually improve the career promotion channel for staff and build echelon talents team using thecompany’s own team as the core team. (6). Grasping the use and development of the existing resources to achieve maximum efficiency
According to the overall arrangement of the company's business development of the polarizer, the company shall fully grasp the utilization and development of the existing resources, revitalize the stock and excite the increment to support the development of the company's polarizer business.
(7). Unremittingly managing the safety production and maintaining the harmony and stability of the company Firmly establish the concept of safety production, strengthen the responsibility of the implementation, unremittingly implement the investigation and management for hidden safety hazards and integrate the awareness of safety production into the whole production process to ensure the smooth realization of the current goal and the long-term goal.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual ReportⅩ.Particulars about researches, visits and interviews received in this reporting period
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable□ Not applicable
||||||
|-|-|-|-|-|
|Reception time|Way of reception||Types of visitors|Basic index|
|||||To know more about the situation of|
|||||polarizer industry and the situation of the|
|||||company’s production and operation,|
|June 16,2015|Onsite investigation||Organization|please see details in “Log of Investor|
|||||Relation Activities”posted on the|
|||||interactive platform of investor relation|
|||||on June, 16, 2015.（No：2015-01）。|
|||||To know comprehend the development|
|||||process and production and operation|
|||||status of the company’s polarizer|
|||||business, please refer to “Record of|
|September 23,2015|Onsite investigation||Organization||
|||||Relations Activities between the|
|||||Company and Investors” published on|
|||||the interactive platform of investor|
|||||relations on Sep 23, 2015.(No.2015-02）.|
|Reception times||2|||
|Reception agency amount||2|||
|Reception personal number||0|||
|Others||0|||
|Whether to disclose, reveal or disclose non-public|||||
|||No|||
|material information|||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report V. Important Events
ⅠSpecification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash dividend policy during the reporting period
□ Applicable√ Not applicable
The profit distribution preplan or proposal and the preplan or proposal of conversion of the capital reserve into share capital in the past three years(with the reporting period inclusive):
Based on the needs of the construction of TFT-LCD polarizer project and the company business development, there were no cash dividends and there were no capital reserves converted into share capital in the last three years. Dividend distribution of the latest three years
In RMB
|||||||
|-|-|-|-|-|-|
|||Net profit||||
||||Ratio in net profit|||
|||attributable to the||Amount of cash|Proportion of cash|
||||attributable to the|||
||Cash dividend|over of the parent||dividends from cash|dividends from cash|
|Year|||parent company in|||
||(Including Tax)|company in the||offer to repurchase|offer to repurchase|
||||the consolidated|||
|||consolidated||shares of the funds|shares of the funds|
||||financial statements|||
|||financial statements||||
|2015|0.00|8,497,227.40|0.00%|0.00|0.00%|
|2014|0.00|-113,591,328.26|0.00%|0.00|0.00%|
|2013|0.00|47,222,590.97|0.00%|0.00|0.00%|

 In the reporting period, both theCompany’s profit and the parentcompany’s retained earnings were positive however not cash dividend distribution proposal has been put forward.
√ Applicable□ Not applicable
|||
|-|-|
|In the reporting period, it was profitable and the profits||
|distributed among common shareholders were positive, but the|Purpose of and plans to use undistributed profits.|
|reason for the profit-sharing scheme by cash was not proposed.||
|Current capital is highly limited, and continuing fund is|Supplement current capital and fund to support Guan Hua|
|necessary for Guan Hua Building under construction.|Building.|

II.Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable√ Not applicable
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report III.Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, senior management personnel and other related parities.
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||||Time of|||
||||||Peiod of||
|Commitment|Commitment maker|Type|Contents|making||Fulfillment|
||||||commitment||
|||||commitment|||
||||As Shenzhen Investment||||
||||Holdings Co., Ltd., the||||
||||controlling shareholder of the||||
||||company, committed when||||
||||the restricted-for-sale shares||||
||||from the shares restructuring||||
||||were listed for circulation in||||
||||the market: i. if they plan to||||
||||sell the shares through the||||
||||securities exchange system in||||
||||the future, and the decrease of||||
||||the shares they hold reaches||||
||Shenzhen|Share|||||
|Commitment on|||5% within 6 months after the|August 4,|Sustained and|Under|
||Investment|reduction|||||
|share reform|||first decrease, they will|2006|effective|Fulfillment|
||Holdings Co., Ltd.|commitment|||||
||||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” and the||||
||||provisions of the relevant||||
||||business principles of||||
||||Shenzhen Stock Exchange.||||
|Commitment in|||||||
|the acquisition|||||||
|report or the|||||||
|report on equity|||||||
|changes|||||||
|Commitment|||||||
|made upon the|||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|assets|||||||
|replacement|||||||
||||Shenzhen Investment||||
||||Holdings Co., Ltd. signed a||||
||||“Letter of Commitment and||||
||||Statement on Horizontal||||
||||Competition Avoidance”||||
||||when the company issued||||
||||non-public stocks in 2009.||||
||||Pursuant to the Letter of||||
||||Commitment and Statement,||||
||||Shenzhen Investment||||
||||Holdings Co., Ltd. and its||||
||||wholly owned subsidiary,||||
||||subsidiaries under control or||||
||||any other companies that||||
||||have actual control of it shall||||
||||not be involved in the||||
||||business the same as or||||
||||similar to those Shenzhen||||
|||Commitments|||||
||||Textile currently or will run in||||
|||on horizontal|||||
||||the future, or any businesses||||
|Commitments|Shenzhen|competition,|||||
||||or activities that may|October 9,|Sustained and|Under|
|made upon|Investment|related|||||
||||constitute direct or indirect|2009|effective|Fulfillment|
|issuance|Holdings Co., Ltd.|transaction|||||
||||competition with Shenzhen||||
|||and capital|||||
||||Textile; if the operations of||||
|||occupation|||||
||||Shenzhen Investment||||
||||Holdings Co., Ltd. and its||||
||||wholly owned subsidiaries,||||
||||subsidiaries under control or||||
||||other companies that have||||
||||actual control of it compete||||
||||with Shenzhen Textile in the||||
||||same industry or contradict||||
||||the interest of the issuer in the||||
||||future, Shenzhen Investment||||
||||Holdings Co., Ltd. shall urge||||
||||such companies to sell the||||
||||equity, assets or business to||||
||||Shenzhen Textile or a third||||
||||party; when the horizontal||||
||||competition may occur due to||||
||||the business expansion||||
||||concurrently necessary for||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
||Shenzhen Investment||||
||Holdings Co., Ltd. and its||||
||wholly owned subsidiaries,||||
||subsidiaries under control or||||
||other companies that have||||
||actual control of it and||||
||Shenzhen Textile, Shenzhen||||
||Textile shall have priority.||||
||The commitments during the||||
||period non-public issuance in||||
||2012: 1. Shenzhen Investment||||
||Holdings, as the controlling||||
||shareholder of Shenzhen||||
||Textile, currently hasn't the||||
||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||||
|Commitments|||||
||directly and indirectly on||||
|on horizontal|||||
||behalf of any person,||||
|competition,|||||
|||July 14,|Sustained and|Under|
||company or unit to engage in||||
|related|||||
||the same or similar business|2012|effective|Fulfillment|
|transaction|||||
||in any districts in the future||||
|and capital|||||
||by the form of share-holding,||||
|occupation|||||
||equity participation, joint||||
||venture, cooperation,||||
||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||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
||||share-holding subsidiaries or||||
||||other enterprises owned the||||
||||actual control rights in the||||
||||future, Shenzhen Investment||||
||||Holdings will promote the||||
||||related enterprises to avoid||||
||||the inter-industry competition||||
||||through the transfer of equity,||||
||||assets, business and other||||
||||ways. 4. Above commitments||||
||||will be continuously effective||||
||||and irrevocable during||||
||||Shenzhen Investment||||
||||Holdings as the controlling||||
||||shareholder of Shenzhen||||
||||Textile or indirectly||||
||||controlling Shenzhen Textile.||||
||||Commitment to non-public of||||
||||fering during the second phas||||
||Shenzhen||e project of Shen Textile shar||||
|||Share limited||March 25,||Under|
||Investment||es subscribed lock handle, loc||2016-03-25||
|||commitment||2013||Fulfillment|
||Holdings Co., Ltd.||king Shen Textile non-public||||
||||offering on the stock market o||||
||||f 36 months.||||
|Equity incentive|||||||
|commitment|||||||
|Other|||||||
|commitments|||||||
|made to|||||||
|minority|||||||
|shareholders|||||||
|Executed timely|||||||
||Yes||||||
|or not?|||||||
|If the|||||||
|commitments|||||||
|failed to|||||||
|complete the|||||||
|execution when|||||||
||No||||||
|expired, should|||||||
|specifically|||||||
|explain the|||||||
|reasons of|||||||
|unfulfillment|||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||
|-|
|and the net stage|
|of the working|
|plan|

2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the forecast period, the company has assets or projects meet the original profit forecast made and the reasons explained
□Applicable√ Not applicable
IV.Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable√ Not applicable
No non-operating occupation from controlling shareholders and its related party in the period.
V.Explanation of the Supervisory Committee and Independent Directors (If applicable)on the QualifiedAuditor’s Report Issued by the CPAs.
□ Applicable√ Not applicable
VI.Explain change of the accounting policy, accounting estimate and measurement methods as compared with the financial reporting of last year.
□ Applicable√ Not applicable
No particulars about the changes in aspect of accounting polcy, estimates or calculation method in the period. VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting period
□Applicable√ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.□Applicable√ Not applicable
No changes in consolidationstatement’s scope for the Company in the period.
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
|||
|-|-|
|Name of the domestic CPAs|Peking Certified Public Accountants（Special General Partnership）|
|Remuneration for domestic accounting firm|45|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
|(RMB’0000)||
|Continuous life of auditing service for domestic||
||5|
|accounting firm||
|Name of domestic CPA|Xiao Yi, Lan Tao|

Has the CPAs been changed in the current period
□ Yes√ No
Description of the CPAs, financial adiver or sponsor engaged for intemal control auditing
√Applicable□Not applicable
In the report year, the Company engaged Peking Certified Public Accountants as the internal control audit body in 2015. The audit remuneration was RMB 0.25 million (including traveling expenses).
X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report□Applicable√ Not applicable
XI.Bankruptcy reorganization
□Applicable√ Not applicable
No bankruptcy reorganization for the Company in reporting period.
XII.Significant lawsuits and arbitrations of the Company
□Applicable√ Not applicable
No significant lawsuits and arbitrations occourred in the reporting period.
Other litigation matters:
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.
XIII.Situation of Punishment and Rectification
□Applicable√ Not applicable
No penalty and rectification for the Company in reporting period.
XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable√ Not applicable
During reporting period, there was no effective judgment of a court and large amount of debt maturity that the
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report company, its controlling shareholders and actual controller failed to perform or pay off.
XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or Other Employee Incentive Measures
□Applicable√ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other employee incentives that have not been implemented.
XVI.Material related transactions
1. Related transactions in connection with daily operation
√Applicable□ Not applicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Whethe|||||
|||||||||Trading|r over|||||
|||||Principl||||limit|the|||||
||||||||||||Market||Index|
||||Subjects|e of||||||||||
|||||||Amount||approve|approve||price of||of|
||||of the|pricing|||Ratio in|||Way of||Date of||
|Related|Relation|Type of|||Price of|of trade|||||similar||informa|
||||related|the|||similar|||paymen||disclosu||
|parties|ship|trade|||trade|RMB0’||d|d||trade||tion|
||||transacti|related|||trades|||t||re||
|||||||000|||||availabl||disclos|
||||ons|transacti||||||||||
|||||||||（RMB|limited||e||ure|
|||||ons||||||||||
|||||||||’0000）|or not|||||
||||||||||(Y/N)|||||
||The|||||||||||||
||Chairma|||||||||||||
||n of the|||||||||||||
||Compan|Sale||||||||||||
|Tianma||||||||||||||
||y was|products|Sales of|Market|Agreem|||||||||
|Microelec||||||||||||||
||Vice|to|polarizer|Principl|ent|207.7|0.26%|600|No|Transfer|207.7|||
|tronic||||||||||||||
||Chairma|related|sheet|e|price|||||||||
|Co., Ltd.||||||||||||||
||n of|parties||||||||||||
||the|||||||||||||
||compan|||||||||||||
||y|||||||||||||
|Total||||--|--|207.7|--|600|--|--|--|--|--|
|Details of any sales return of a large||||||||||||||
|||||Not applicable||||||||||
|amount||||||||||||||
|Give the actual situation in the report||||||||||||||
|period where a forecast had been||||||||||||||
|made for the total amounts of routine||||Not applicable||||||||||
|related-party transactions by type to||||||||||||||
|occur in the current period(if any)||||||||||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
|Reason for any significant difference||
|between the transaction price and the|Not applicable|
|market refernce price (if applicable)||

2. Related-party transactions arising from asset acquisition or sold
□Applicable√ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Related-party transitions with joint investments
□Applicable√ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.
4. Credits and liabilities with related parties
√Applicable□Not applicable
Was there any non-operating credit or liability with any related party?
√ Yes□No
Due from related parties
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Newly|||||
|||||||Amount||||
||||Does there||increased|||Interest in||
|||||Opening||recovered in|||Ending|
||||exist||amount in|||the||
|Related|Relationshi|Causes of||balance||the|||balance|
||||non-operati||the||Interest rate|reporting||
|parties|p|formation||(RMB||reporting|||(RMB’0000|
||||on capital||reporting|||period(RM||
|||||‘0000)||period(RM|||)|
||||occupancy?||period(RM|||B’0000)||
|||||||B’0000)||||
||||||B’0000)|||||
||The|||||||||
||Chairman|||||||||
|Shenzhen||||||||||
||of the|||||||||
|Tianma||||||||||
||Company|Sale||||||||
|Microelectr|||No|56.81|243.01|264.83|||34.99|
||was Vice|products||||||||
|onics Co.,||||||||||
||Chairman|||||||||
|Ltd.||||||||||
||of the|||||||||
||company|||||||||
|Anhui||||||||||
|Huapeng|Sharing|||||||||
|||Contract fee|No|180|180||||360|
|Textile Co.,|company|||||||||
|Ltd.||||||||||
|Shenzhen||||||||||
||Sharing|||||||||
|||Contract fee|No|25.75|80.86|78.89|||27.72|
|Dailishi||||||||||
||company|||||||||
|Underwear||||||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
|Co., Ltd.||
|Influence of the related||
|rights of credit and||
|liabilities upon the||
||In the report period,Increase investment income of RMB2.6086 million.|
|company’s operation||
|results and financial||
|position||

Due to related parties
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Amount|||||
||||||Amount||||
|||||newly|||Interest in||
||||Opening||repaid in the|||Ending|
|||Causes of||increased in|||the reporting||
|Related parties|Relationship||balance(RM||reporting|Interest rate||balance|
|||formation||the reporting|||period(RMB’||
||||B’0000)||period(RMB’|||(RMB’0000)|
|||||period(RMB’|||0000)||
||||||0000)||||
|||||0000)|||||
|Shenzhen|||||||||
|Xinfang|Sharing|Current|||||||
||||24.48|||||24.48|
|Knitting Co.,|company|amount|||||||
|Ltd.|||||||||
|Shenzhen|||||||||
||Sharing|Current|||||||
|Xiangjiang|||4|||||4|
||company|amount|||||||
|Trade Co., Ltd|||||||||
|Shenzhen|||||||||
|Changlianfa|||||||||
||Sharing|Current|||||||
|Printing &|||58.46|40.25|7.04|||91.67|
||company|amount|||||||
|dyeing Co.,|||||||||
|Ltd.|||||||||
|Shenzhen|||||||||
|Haohao|||||||||
||Sharing|Current|||||||
|Property|||347.95|70||||417.95|
||company|amount|||||||
|Leasing Co.,|||||||||
|Ltd|||||||||
|Yehui|||||||||
||Sharing|Current|||||||
|International|||107.15|6.65||||113.8|
||company|amount|||||||
|Co., Ltd.|||||||||
|Shengbo（HK）|Sharing|Current|||||||
||||31.5|||||31.5|
|Co., Ltd.|company|amount|||||||
|Shenzhen|||||||||
|Shenchao|Controlled||||||||
|||Interest|||||||
|Technology|by the same||3,280.65|619.41||||3,900.06|
|||payable|||||||
|Investment|party||||||||
|Co., Ltd.|||||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
|Indluence of the related||
|rights of credit and liabilities||
|upon the company’s|In the report period, Increase financial interest expense of RMB 6.1941 million.|
|operation results and||
|financial position.||

5. Other significant related-party transactions
√Applicable□Not applicable
To ensure the construction progress of polarizer with TFT-LCD, Shenzhen Shengbo Optoelectronic Technology Co., Ltd., Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Development Bank, Shenzhen Branch, First Tower Subbranch signed “Contract on Consigned Loan”, of whose main content is: Shenzhen Shenchao Technology Investment Co., Ltd applied to the bank for 200 million RMB of construction of dedicated plant and auxiliary projects for polarizer with TFT-LCD for Shenzhen Shengbo Optoelectronic Technology Co., Ltd The term of the loan is 108 months from the day when the first installment of entrusted loan is transferred to the account of the Company. As of December 31,2015,The Company actually received a loan of RMB 160 million.
Website for temporary disclosure of the connected transaction
||||
|-|-|-|
|Announcement|Date of disclosure|Website for disclosure|
|Announcement of related Transactions||http//www.cninfo.com.cn. Announcement|
||December 12, 2009||
|||No.2009-55|
|Announcement of Resolutions of the Secondprovisional shareholders’ general meeting||http//www.cninfo.com.cn. Announcement|
||December 30,2009||
|||No.2009-57|
|Announcement of related Transactionsprogress||http//www.cninfo.com.cn. Announcement|
||July 1, 2010||
|||No.2010-26|

XVII.Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable√ Not applicable
No trusteeship, contract or leasing for the Company in reporting period.
(2) Contract
□ Applicable√ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
□Applicable√ Not applicable
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report No any lease for the Company in the reporting period..
2.Guarantees
□Applicable√ Not applicable
No any guarantees for the Company in the reporting period..
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable√ Not applicable
No any Entrusted Finance for the Company in the reporting period..
（2）Situation of Entrusted Loans
□ Applicable√ Not applicable
No any Entrusted loans for the Company in the reporting period..
4. Other significant contract
□ Applicable√ Not applicable
No other significant contracts for the Company in reporting period.
XVIII.Explanation about other significant matters
√Applicable□Not applicable
(I) Optimization and demonstration of the second-phase project scheme on polarizer for TFT-LCD
Given SAPO Photoelectric and NittoDenko’s failure to reach a cooperative agreement on manufacturing polarizer, they undersigned Dissolution of Contract, on February 3rd, 2015. We had intended to produce polarizer in collaboration with Nitto Denko. However, such failure ruined the purpose of funds raised for the second-phase polarizer for TFT-LCD. For details JuchaoWebsite:（http://www.cninfo.com.cn）on February 6, 2015(Announcement No.2015-08).
Profound and extensive market survey, technology exchange and customer contacts were carried out to make sure that the second-phase project would embrace fine market prospect and profitability. Meanwhile, the scheme for the second-phase polarizer for TFT-LCD (line 6 and line 7) was optimized as the status quo of polarizer. Based onexperts’ demonstration on the project, it was determined to carry forward the line 6. RMB 700.34 million is intended to be invested in the optimized line 6, construction period of which is from March, 2016 to December, 2017. At present, line-6 construction group is established, investment plan and construction schedule are determined, open bidding for main machine procurement and contract singing involved are performed. It is projected to achieve design and construction of relevant projects by 2016, installation and commission of line 6 and trial production, as well as mass production by 2017.
In light of less net amount of actual funds raised for the second-phase project than the planned ones, it intends to terminate line 7 after overall consideration of scale of production lines and business pressure and change RMB
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report 309.2722 million (including interest) for line 7 to current capital which permanently replenishes primary businesses.
(II)18% equity transfer of Tongyi held by Shengbo Optoelectronicc
On November 10, 2015, 19th session of the 6th board of directors examined and adopted the Proposal Proposal on18% Equity Transfer of Tongyi Silk Plant Held by Shengbo Optoelectronic Photoelectric.18% Equity of Tongyi with assessed value RMB 45.5203 million was transferred to Shenzhen Fenghuirun Investment Co., Ltd, with the purpose of pooling funds to develop polarizer as the primary business and fulfilling strategic transformation. Shengbo Optoelectronicc and Fenghuirun undersigned State-Owned Property Right Transfer Contract in December, 17, bringing about impact to an extent on 2015 annual performance. For details Juchao Website:（http://www.cninfo.com.cn）on November 11, 2015, November 17, 2015 and December 18, (Announcement No.2015-40, 2015-41,2015-42 and 2015-43)).
XIX.Major issues of subsidiary
√Applicable□Not applicable
1. The matters involved with Dissolution of Contract bearing the signature of Shengbo Optoelectronicc and Nitto Denko are indicated in “XVIII, explanation of other important matters” under Chapter V of 2015 Annual Report. 2. The matters involved with18% equity transfer of Tongyi held by Shengbo Optoelectronic are indicated in “XVIII, explanation of other important matters” under Chapter V of 2015 Annual Report.
XX.Social responsibility
√Applicable□Not applicable
(1)The protection ofshareholder’s rights and interests
In the reporting period, we strictly followed Corporation Law, Securities Law, Corporate Governance Standards for Listed Companies and other laws and regulations to meliorate governance structure and make operation and business more standard. We invariably upheld the general meeting of stockholders, board of directors, board of supervisors and consultation system of independent directors as core, improved corporate governance structure and upgraded management systems. We adhered to the mission of “responsible for shareholders, value-added assets and stable return”, paid more attention to improve internal control system in the presence of operation and business, took effective steps to prevent operational risk, and guaranteed and safeguardedshareholders’ rights and interests, thus laying a solid foundation for sound and sustainable development. Independentdirectors’ meeting convened this year was in fine conformance with relevant laws and regulations and Articles of Corporation. They kept a close eye on business operation, fulfilled their duties and came up with valuable and professional advice for day-to-day operation and system perfection. In this way, they played a significant part in safeguarding the company andshareholders’ legitimate rights and interests.
It is determined this year to make more efforts to advance information disclosure and transparency, make the most of multi-platform to protect the rights and interests due for investors, promptly answer the investors, improve transparent information and safeguard medium and smallshareholders’ legitimate interests.
(2) The protection of legal right of staff
We value human resource management, uphold “unity, vitality, enterprising” management philosophy, provide official Labor Contract and various statutory social insurances and welfares according to Labor Law and related laws and regulations, respect and protectemployee’s legitimate interests and aim for harmonious, stable
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report labor-capital relationship. Thorough human resource management system and performance assessment system are established and optimizing in execution. In reporting period, human resource management system, position competition, appointment and dismissal system, performance assessment system, assessment and management of probation confirmation, salary management system, entry and demission management and labor contract management system, etc, were revised and improved for humanistic care and supporting strategy implementation. Company intensifies safety production, improves the control system, enhances the contingency plan, safety production training and troubleshooting, reform of hidden danger and advances safety management to guarantee safety and occupational health of employees.
(3) The protection of environment
Modern “green enterprise” iscompany’s long-term goal, which will be achieved by green circulation in all process of industry chain. In reporting period, no occurrence of severe environmental incident; noise, industrial wastewater, exhaust emission, etc of production passed environmental protection monitoring and accorded with related laws and regulations. Moreover, “green office” is promoted and various educational activities of environmental protection are carried out to disseminate awareness of energy conservation and emission reduction and coordinate production and environmental protection.
(4) The protection of consumer rights and interests
“Innovative, professional, advanced, sustainable” has always been our management philosophy. Responsibility to customers, in another word, professional, personalized, all-around products and service, represents our value and ultimate goal. Sustainable customer-oriented service and impeccable product quality motive our performance and sustainable development and guarantee long-term customers. And our long-term partnership is established on the basis of initiative attention, quick responding and sincere care to customers.
Whether the listed company and its subsidiaries belong to the heavy polluting industries regulated by the state environmental protection department.
□ Yes□ No√ Not applicable
XXI.Information about the corporate bonds
Whether the listed company failed to honor the corporate bonds public issued and listed on the Stock Exchange in due or undue at the approval date of the annual report
No
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report VI. Change of share capital and shareholding of Principal
Shareholders
Ⅰ.Changes in share capital
1. Changes in share capital
In Shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Increase/decrease（+，-）|||||After the Change||
||Amount|Proportio|||Capitaliza|||||
|||n|Share|Bonus|tion of||||Proportio|
||||||common|Other|Subtotal|Quantity||
||||allotment|shares|||||n|
||||||reserve|||||
||||||fund|||||
|1.Shares with conditional|51,527,72|||||||51,527,72||
|||10.17%|||||||10.17%|
|subscription|6|||||||6||
|2.State-owned legal person|51,457,97|||||||51,457,97||
|||10.16%|||||||10.16%|
|shares|6|||||||6||
|3.Other domestic shares|69,750|0.01%||||||69,750|0.01%|
|Domestic Nature shares|69,750|0.01%||||||69,750|0.01%|
|II.Shares with unconditional|454,994,1|||||||454,994,1||
|||89.83%|||||||89.83%|
|subscription|23|||||||23||
||405,563,8|||||||405,563,8||
|1.Common shares in RMB||80.07%|||||||80.07%|
||73|||||||73||
|2.Foreign shares in domestic|49,430,25|||||||49,430,25||
|||9.76%|||||||9.76%|
|market|0|||||||0||
||506,521,8|||||||506,521,8||
|III. Total of capital shares||100.00%|||||||100.00%|
||49|||||||49||

Reasons for share changed
□Applicable√Not applicable
Approval of Change of Shares
□Applicable√Not applicable
Ownership transfer of share changes
□Applicable√Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report□Applicable√Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security regulators
□Applicable√Not applicable
2. Change of shares with limited sales condition
□Applicable√Not applicable
Ⅱ.Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable√Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□Applicable√Not applicable
3.About the existingemployees’ shares
□Applicable√Not applicable
Ⅲ.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||32,443|||||||Total|||
|||||||||||||preferred shareh|||
|Total number|||Total||||The total number o||||||||
|||||||||||||olders at the end|||
|of common|||shareholders at||||f preferred shareho||||||||
|||||||||||||of the month|||
|shareholders at|||the end of the||||lders voting rights||||||||
||30,984|||||||||0||from the date of||0|
|the end of the|||month from the||||restored at period-e||||||||
|||||||||||||disclosing the|||
|reporting|||date of disclosing||||nd(if any)(See||||||||
|||||||||||||annual report(if|||
|period|||the annual report||||Notes 8)||||||||
|||||||||||||any)(See Notes|||
|||||||||||||8)|||
|Particulars about shares held above 5% by shareholders or top ten shareholders|||||||||||||||
||||||Number|||Amount|Amount||Number of share pledged/frozen||||
|||||Proportio||Changes|||||||||
|Shareholders||Nature of||n of|of shares|in||of|of||||||
||||||held at|||restricted|un-restrict||||||
|||shareholder||shares||reporting|||||State of share||Amount||
||||||period|||shares|ed shares||||||
|||||held（%）||period|||||||||
||||||-end|||held|held||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|ShenzhenInvestmentHoldings Co., Ltd.|State-owned legalperson|46.21%|234,069,436|0|51,457,976|182,611,460|
|Qianhai Lifeinsurance Co., Ltd.－Self fundsHuatai Portfolio|Other|4.02%|20,384,816|11,158,067||20,384,816|
|ShenzhenShenchaoTechnologyInvestment Co.,Ltd.|State-ownedLegal person|3.18%|16,129,032|||16,129,032|
|Anhui GuofuIndustrialInvestment FundsMangement Co.,Ltd.|Domestic nonState-ownedLegal person|0.73%|3,708,341|1,238,500||3,708,341|
|Anhui ChujiangInvestment GroupCo., Ltd.|Domestic nonState-ownedLegal person|0.65%|3,304,545|3,304,545||3,304,545|
|Xia Keyun|Domestic Natureperson|0.60%|3,028,912|3,028,912||3,028,912|
|MORGANSTANLEY & CO.INTERNATIONAL PLC|Foreign Legalperson|0.53%|2,689,464|2,689,464||2,689,464|
|Sun Huiming|Domestic Natureperson|0.48%|2,432,526|436,179||2,432,526|
|China ForeignEconomic TradeTrust Co., Ltd.－Yunfeng SecuritiesInvestment Trustplans|Other|0.41%|2,100,000|2,100,000||2,100,000|
|Liu Fei|Domestic Natureperson|0.28%|1,417,996|1,417,996||1,417,996|
|Strategy investors or general legal|||||||
|person becomes top 10 shareholders|||||||
|||N/A|||||
|due to rights issued (if any )(See Notes|||||||
|3)|||||||
|Related or acting-in-concert parties||Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of|||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|among shareholders above|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|||
||non-restricted negotiable shares and between the top ten shareholders holding|||
||non-restricted negotiable shares and the top 10 shareholders or whether they are persons|||
||taking concerted action defined in Regulations on Disclosure of Information about|||
||Shareholding of Shareholders of Listed Companies.|||
|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.|182,611,460|RMB Common||
||||182,611,460|
|||shares||
|Qianhai Life insurance Co., Ltd.－Selffunds Huatai Portfolio|20,384,816|RMB Common||
||||20,384,816|
|||shares||
|Shenzhen Shenchao TechnologyInvestment Co., Ltd.|16,129,032|RMB Common||
||||16,129,032|
|||shares||
|Anhui Guofu Industrial InvestmentFunds Mangement Co., Ltd.|3,708,341|RMB Common||
||||3,708,341|
|||shares||
|Anhui Chujiang Investment GroupCo., Ltd.|3,304,545|RMB Common||
||||3,304,545|
|||shares||
|Xia Keyun|3,028,912|RMB Common||
||||3,028,912|
|||shares||
|MORGAN STANLEY & CO.INTERNATIONAL PLC|2,689,464|Foreign shares||
|||placed in||
||||2,689,464|
|||domestic||
|||exchange||
|Sun Huiming|2,432,526|Foreign shares||
|||placed in||
||||2,432,526|
|||domestic||
|||exchange||
|China Foreign Economic Trade TrustCo., Ltd.－Yunfeng Securities Investment Trustplans|2,100,000|||
|||RMB Common||
||||2,100,000|
|||shares||
|Liu Fei|1,417,996|RMB Common||
||||1,417,996|
|||shares||
|Explanation on associated relationship|Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of|||
|or consistent action among the top 10|Shenzhen Investment Holdings Co., Ltd. and a person taking concerted action. Except this,|||
|shareholders of non-restricted|the Company did not whether there is relationship between the top ten shareholders holding|||
|negotiable shares and that between the|non-restricted negotiable shares and between the top ten shareholders holding|||
|top 10 shareholders of non-restricted|non-restricted negotiable shares and the top 10 shareholders or whether they are persons|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
|negotiable shares and top 10|taking concerted action defined in Regulations on Disclosure of Information about|
|shareholders|Shareholding of Shareholders of Listed Companies.|
|Explanation on shareholders|The Company Shareholder Liu Fei holds 202,400 shares through ordinary stock account.|
|participating in the margin trading|holds 1,215,596 shares of the Company through stock account with credit transaction and|
|business(if any )(See Notes 4)|guarantee of Shenwan Hongyuan Securities Co., Ltd.,The total amount is1,417,996 shares.|

 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.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type of Controlling Shareholders:Legal person
||||||
|-|-|-|-|-|
||Legal||||
|Name of the Controlling|||||
||representative/Leade|Date of incorporation|Organization code|Principal business activities|
|shareholder|||||
||r||||
|||||Providing guarantee to|
|||||municipal state-owned|
|||||enterprises, managing|
|||||state-owned equity of|
|||||enterprises other than those|
|||||directly supervised by|
|||||Municipal State-owned|
|||||Assets Commission,|
|Shenzhen Investment|||||
||Xiong Peijin|October 13, 2004|767566421|conducting asset|
|Holdings Co., Ltd.|||||
|||||reorganization, system|
|||||transformation and capital|
|||||operation of affiliated|
|||||enterprises, making|
|||||investment and doing other|
|||||businesses authorized by|
|||||the Municipal State-owned|
|||||Assets|
|Equity of other|Shen Property（000011），Quantity of shares held 379.74 million，Shareholding ratio：63.72%；||||
|domestic/foreign listed|Shenbo（000019），Quantity of shares held 48.17 million，Shareholding ratio：14%Shen Realestate||||
|company with share|（000029），Quantity of shares held 642.88 million，Shareholding ratio：63.55%；Shen Universe||||
|controlling and share|（000023），Quantity of shares held 14.79 million，Shareholding ratio：10.66%；Pingan（601318），||||
|participation by|Quantity of shares held962.72 million，Shareholding ratio：5.27%；Guosen Securities（002736），||||
|controlling shareholder in|Quantity of shares held2749.52 million，Shareholding ratio：33.53%,；Guotai Junan（601211）||||
|reporting period|Quantity of shares held624.07 million，Shareholding ratio：8.18% and Etop information（834386）,||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||
|-|
|Quantity of shares held 42 million，Shareholding ratio：60%.|

Change of the actual controller in the reporting period
□Applicable√Not applicable
N/A
3．Information about the controlling shareholder of the Company
Actual controllernature：Local state owned assets management
Actual controllertype：Legal person
||||||
|-|-|-|-|-|
||Legal||||
|Name of the controlling||Date of|||
||representative/per||Organization code|Principal business activities|
|shareholder||establishment|||
||son in charge||||
|||||Performing the responsibilities|
|||||of investors on behalf of the|
|State-owned Assets Regulatory|||||
|||||state and supervising and|
|Commission of Shenzhen|Gao Zimin|Jul 31, 2004|K3172806-7||
|||||managing state-owned assets|
|Municipal People's Government|||||
|||||according to authorization and|
|||||law.|
|Equity of other|||||
||Except for Shenzhen Holdings Co., Ltd., the holding shareholder of the company, other domestic||||
|domestic/foreign listed|||||
|company with share|||||
||and foreign listed companies of the equity held by the actual controller haven’t been shown in the||||
|controlling and share|||||
|participation by|list of the top ten shareholders of the company.||||
|controlling shareholder in|||||
|reporting period|||||

Changes of the actual controller in the reporting period
□Applicable√Not applicable
No Changes of the actual controller in the reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
The actual controller controls the company by means of trust or managing the assets in other way
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report□Applicable√Not applicable
4.Particulars about other legal person shareholders with over10% shareheld
□Applicable√Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party and Other Commitment Subjects
□Applicable√Not applicable
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report VII. Situation of the Preferred Shares
□ Applicable√Not applicable
The Company had no preferred shares in the reporting period.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report VIII. Information about Directors, Supervisors and Senior Executives I. Change ein shares held by directors, supervisors and senior executives
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Amount|Amount|||
||||||||Shares|of shares|of shares||Shares|
|||||||||||Other||
||||||Starting|Expiry|held at|increased|decreased||held at|
|||Office||||||||changes||
|Name|Positions||Sex|Age|date of|date of|the|at the|at the||the|
|||status||||||||increase/d||
||||||tenure|tenure|year-begi|reporting|reporting||year-gegi|
|||||||||||ecrease||
||||||||n(share)|period(sh|period(sh||n(share)|
|||||||||are)|are)|||
||Board|||||||||||
||chairman,||||January|August||||||
|Zhu Jun||In office|Male|52|||0|0|0|0|0|
||General||||16,2015|15,2016||||||
||Manager|||||||||||
||||||August|August||||||
|Chao Jin|Director|In office|Female|53|||0|0|0|0|0|
||||||16,2013|15,2016||||||
|Wang|||||May|August||||||
||Director|In office|Male|51|||0|0|0|0|0|
|Yongjian|||||4,2010|15,2016||||||
||||||May|August||||||
|Lin Lebo|Director|In office|Male|54|||0|0|0|0|0|
||||||20,2015|15,2016||||||
|Jin|Director,||||August|August||||||
|||In office|Female|44|||0|0|0|0|0|
|Zhenyuan|CFO||||16,2013|15,2016||||||
||Independ|||||||||||
|Zhang|||||May|August||||||
||ent|In office|Male|56|||0|0|0|0|0|
|Yong|||||4,2010|15,2016||||||
||Director|||||||||||
||Independ|||||||||||
|Shi|||||May|August||||||
||ent|In office|Female|48|||0|0|0|0|0|
|Weihong|||||4,2010|15,2016||||||
||Director|||||||||||
||Independ|||||||||||
||||||August|August||||||
|He Qiang|ent|In office|Male|63|||0|0|0|0|0|
||||||16,2013|15,2016||||||
||Director|||||||||||
||Chairman|||||||||||
||of the|||||||||||
|Wang|superviso||||May|August||||||
|||In office|Male|48|||0|0|0|0|0|
|Weixing|ry||||20,2015|15,2016||||||
||committe|||||||||||
||e|||||||||||
|Li Wei|Superviso|In office|Male|50|April|August|0|0|0|0|0|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||r||||21,2009|15,2016||||||
||Employee|||||||||||
|Zhang|||||August|August||||||
||superviso|In office|Male|40|||0|0|0|0|0|
|Xiaodong|||||9,2013|15,2016||||||
||r|||||||||||
|Feng|Deputy||||July|August||||||
|||In office|Male|53|||0|0|0|0|0|
|Junbin|GM||||30,2003|15,2016||||||
|Zhu|Deputy||||Septembe|August||||||
|||In office|Male|51|||93,000|0|0|0|93,000|
|Meizhu|GM||||r 23,2008|15,2016||||||
||Secretary|||||||||||
|Jiang|to the||||January|August||||||
|||In office|Female|45|||0|0|0|0|0|
|Peng|board of||||16,2015|15,2016||||||
||directors|||||||||||
||Board||||January|January||||||
|Wang Bin||Former|Male|45|||0|0|0|0|0|
||chairman||||5,2007|12,2015||||||
||||||August|April||||||
|Lou Chao|Director|Former|Male|61|||0|0|0|0|0|
||||||16,2013|14,2015||||||
|Zhang|Deputy||||January|June||||||
|||Former|Male|50|||0|0|0|0|0|
|Hong|GM||||5,2007|19,2015||||||
||Secretary|||||||||||
||to the||||October|January||||||
|Li Jiang||Former|Male|38|||0|0|0|0|0|
||board of||||23,2013|16,2015||||||
||directors|||||||||||
|Total|--|--|--|--|--|--|93,000|0|0|0|93,000|

 II. Change in shares held by directors, supervisors and senior executives
||||||
|-|-|-|-|-|
|Name|Positions|Types|Date|Reason|
||Director, Board||||
|Wang Bin||Former|January 12,2015|Due to the Job Changes|
||Chairman||||
||Secretary to the||||
|Li Jiang|board of|Dismissal|January 16,2015|Due to internal job changes|
||directors||||
|Lou Chao|Director|Former|April 14,2015|Jue to Retirement|
||Chairman of the||||
|Lin Lebo|supervisory|Former|April 14,2015|Due to the Job Changes|
||committee||||
||Deputy General||||
|Zhang Hong||Former|June 19,2015|Due to Resignation for personal reasons|
||Manager||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report III.Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
(1) Director
Zhu Jun, Male, Born in 1963, Masterdegree，senior engineer , member of the Communist party, He served successively as secretary of Lige Village, Yutai County, Shandong Province, workshop director of Shandong Jining Cotton Mill, deputy factory director of Jining Chemical Fibre Factory, office director of Jining Textile Industry Company, deputy county head of Wenshang County, Shandong Province, office director of Shandong Textile Department, chief of Personnel Education Division, manager of Enterprise management Dept, general manager assistant and Deputy General Manager of the Company. He served as Board Chairman of Shengbo Optoelectronic Technology Co., Ltd. And Director and Vice Board chairman of Tianma Microelectronic Co., Ltd. He served as secretary of Party Committee and General Manager of the Company.
Chao Jin, Female, Born in 1962, Master degree, Senior political engineer, Economic engineer, member of the Communist party,She served successively as teacher of Shanxi Chinese Medicinal Material School and Jilin Business College, head of Employment Section of Personnel and Employment Dept. of the Company, office director and manager of Personnel Dept. of subsidiary and general manager secretary of the Company. she served as Deputy General Manager and the board secretary of the Company. She served as Vice secretary of PartyCommittee，Discipline Committee, Director of the Company.
Wang Yongjian , Male, Born in 1964,Master degree, Economic engineer , member of the Communist party, He served successively as Financial Analyst Financial Manger and Chief Financial Officer of U.S.Digital Equipment (China) Company, Senior staff and principal staff of Shenzhen Government Economic Restructuing Office, Manager of China South Securities Co., Ltd., Deputy General Manager of Administrative Headquarters, Deputy Director of office, the board secretary of Shenzhen Shahe Industrial Group ., Deputy General Manager of Shahe Industrial Company, He served as Deputy General Manager of Shenzhen Holdings Invetment Co., Ltd. He served as Director of the Company.
Lin Lebo , Male, born in 1961, Bachelor Degree, auditor, member of communist party. He used to be deputy director, director, vice President of the union, party branch secretary in Shenzhen Audit bureau;served as director in shenzhen auditing firm, executive vice President in Shijixingyuan Co., Ltd.,, manager of audit department and secretary of the party branch in Shenzhen investment management company, manager of asset management department and secretary of the party branch in Shenzhen investment management company;used to serve as chairman of the board and party secretary in and shenzhen coptic green industry development co., Ltd., deputy manager in shenzhen Tongchan industrial co., Ltd., director, general manager, deputy party secretary in shenzhen Tongchan packaging group co., Ltd., chairman of the supervisory board in inspection group in the southern electronic product testing (shenzhen) co., Ltd.. Now serve as Executive director and Deputy General Manager of Shenzhen Shenchao Technology Investment Co., Ltd. He served as Director of the Company.
Jin Zhenyuan, Female, born in 1971, Master Degree, Senior Accountant, CPA, international financial management division. She used to serve as Shenzhen Lionda Group Chief Accountant, Finance Minister in Shenzhen Oriental Enterprise Ltd., Finance Minister in Shenzhen new century drinking Co., Finance Director in Yili Industrial Co., Ltd. of Shenzhen, Finance Minister in Shenzhen, China Transportation Industry Corporation, director and Chief Financial Officer in Shenzhen City-Property Group, , Director in Shenzhen Beauty Star Co., Ltd., Director and Chief Financial Officer of Shenzhen Wuzhou Guest House, LLC. She now serve as the Director and Chief Financial Officer of the Company,
Zhang Yong, Male, Born in 1959, Doctor of laws , Lawyer, once served successively as Deputy director of
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report International Economic Law Dept of China University of Political Science ,Associate professor of International Economic Law Dept of Wuhan University, Judge of Shenzhen IntermediatePeople’s Court Second chamber and Third chamber,president and secretary of Party Committee of Shenzhen Lawyer Association, CPPCC member of Shenzhen, He served as independent Director of Shenzhen Agricultural Products Co., Ltd., He now serves as Partner of Guangdong Renren law firm, first level lawyer, a member of the Shenzhen Municipal People's
Government Office of Legislative Affairs legal expert advisory committee, the executive director of the
Guangdong Provincial Law Association, vice president of the Shenzhen Municipal Law, a member of China International Economic and Trade Arbitration Commission Expert Advisory Committee, a member of Shenzhen Arbitration Commission, members of the Advisory Committee for Huizhou Arbitration Commission , the
Company's independent directors.
Shi Weihong, Female, Born 1967, Doctor, certified public accountant, Certified asset appraiser, Certified tax agent, once served successively as Auditor, Project Manger and Director of Guangming Certified public Accountants, she served as Independent Director of Shenzhen Tili(Group) Co., Ltd, as Independent director of Shenzhen SEG Samsung Co., Ltd. Senior partner of Shenzhen Guangming Certified public Accountants, she now serves as Partner of Accounting Firm and Independent director of the Company.
He Qiang , Male, born in 1952, Professor of finance at the Central University of Finance and Economics, Ph.D. tutor, Director of Securities and Futures Institute, enjoy special government allowances. He was a member of 11th and 12th CPPCC National Committee, of China Finance Society, the China Investment Association, of China Economic and Social Council of the other positions. He served as independent director in the Air Investment Holding Co., Ltd., in Hengyi Petrochemical Co., Ltd., in Golden State Securities corporation, Dongbei Securities and in the Company. the Company's independent directors.
（2）Supervisor
Weixing Wang, male, born in 1968, graduate degree, economist, member of Communist Party of China, has served successively as cadre of Qingdao TV Factory, staff and senior staff member of Shenzhen Administration of Industry and Commerce (price bureau) Futian, Che Kung Temple branch, senior staff member and principal staff member of Shenzhen Administration of Industry and Commerce (price bureau) registration sub-office, principal staff member of Shenzhen General Asset Management Office, deputy director of Shenzhen Asset Management Office collective enterprise department, deputy director of general office of Shenzhen Asset Management Office, deputy director of petition acceptance office of Shenzhen Asset Management Office, director, vice-secretary of CPC and secretary of discipline commission of Shenzhen Tongchan Packaging Group Co., Ltd, director,
vice-secretary of CPC and secretary of discipline commission of Shenzhen Tongchan Group Co., Ltd and
currently takes the post of chairman of supervisory board of the Company.
Li Wei, Male, Born in 1965, Master degree, Economic engineer, member of the Communist party,once served successively as Staffer of Shenzhen Aihua Electronics Company, Cadres of Shenzhen Municapal Taiwan Affairs Office,Assistant director of Office ,Secretary of Board Chairman of Zhongshen Internation Cooperation
office, .Assistant Manager of Office and Deputy Director of Assets Dept of Shenzhen Trade Investment Holding Company,Deputy Director of Law Affair Dept and Deputy director of Enterprise No2.Dept of Shenzhen
Investment Management Co., Ltd. Deputy director of Enterprise and No.1 Dept and No2.Dept of Shenzhen Holdings Investment Co., Ltd., He new served as Deputy General Manager of Shenzhen Shentou Investment Development Co., Ltd. and Supervisor of the Company.
Zhang Xiaodong , Male, born in 1975, Master Degree, communist party member. He joined the company in August 1999, used to serve as manager assistant, manager of subordinary of Shenzhen textile (Holdings) Co., Ltd., manager in business management department; used to be manager in Shenzhen Beautify Centenary clothing co.,
Ltd. He new serve as party department minister and superior of the company.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report（3）Senior Executives
Feng Junbin , Male, Born in 1962, College degree ,Auditor, He served successively as special enterprise controller of Guangdong Dapu County Finance Bureau, deputy section head of Guangdong Fengshun County, director of Audit Dept., manager of Enterprise Management Dept., general manager assistant and supervisor of the Company, he served as Deputy general manager of the Company.
Zhu Meizhu, Male, Born in 1964, Master degree, Senior engineer, once served successively as chief Deputy general Manager of Enterprise Management Dept of the Company, Director ofR& D Center, Assistant General Manager, He served as Deputy general Manager of the Company and Administer director of Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
Jiang Peng, Female, born in 1970, Bachelor Degree, member of communist party, She served as officer of the Secretary Office of Shandong Fishery Group Co.,Ltd., Deputy Director of the Secretary office and Securities affairs Representative of Shandong Zhonglu Oceanic Fisheries Co., Ltd., Securities Representative of Huafu Holding Co., Ltd., Securities affairs representative and Officer of the Secretariat of the Board of the Company, now serves as the secretary of the Board of the Company.
Office taking in shareholder companies
√Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||||||Does he /she|
|||Titles||||
|Names of the|||||receive|
|||engaged in|Sharting date of|Expiry date of||
|persons in|Names of the shareholders||||remuneration or|
|||the|office term|office term||
|office|||||allowance from the|
|||shareholders||||
||||||shareholder|
|||Deputy||||
|Wang Yongjian|Shenzhen Investment Holdings Co., Ltd.|General|July 1, 2009||Yes|
|||Manager||||
||Shenzhen Shenchao Technology|General|January 19,|||
|Lin Lebo|||||Yes|
||Investment Co., Ltd.|Manager|2015|||
|||Deputy||||
||Shenzhen Shentou Porperty Developement|||||
|Li Wei||General|August 6, 2014||Yes|
||Co., Ltd.|||||
|||Manager||||

Offices taken in other organizations
□Applicable√Not applicable
Punishments to the current and leaving board directors, supervisors and senior managers during the report period by securities regulators in the recent three years
□ Applicable√Not applicable
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors , supervisors and senior executives
In the report period, The remuneration of directors and senior management paid by the company is determined by
“Director Compensation Management System” and “Executive Compensation Management and Evaluation
System”, the remuneration of independent directors is determined as per the resolution ofshareholders’ meeting,
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report and the remuneration of supervisors paid by the company is determined by their position held in the company. Remueration to directors, supervisors and senior executives in the reporting period
Unit：RMB’0000
||||||||
|-|-|-|-|-|-|-|
||||||Total|Remuneration|
||||||remuneration|actually receivect|
|Name|Positions|Sex|Age|Office status|||
||||||received from the|at the end of the|
||||||shareholder|reporting period|
||Board Chairman,||||||
|Zhu Jun||Male|52|In Office|55.66|No|
||General Manager||||||
|Chao Jin|Director|Female|53|In office|53.28|No|
|Wang Yongjian|Director|Male|51|In Office|-|Yes|
|Lin Lebo|Director|Male|54|In office|18.33|Yes|
|Jin Zhenyuan|Director, CFO|Female|44|In Office|40.00|No|
||Independent||||||
|Zhang Yong||Male|56|In office|8|No|
||Director||||||
||Independent||||||
|Shi Weihong||Female|48|In Office|8|No|
||Director||||||
||Independent||||||
|He Qiang||Male|63|In office|8|No|
||Director||||||
||Chairman of the||||||
|Wang Weixing|supervisory|Male|48|In Office|25.67|Yes|
||committee||||||
|Li Wei|Supervisor|Male|50|In office|-|Yes|
||Employee||||||
|Zhang Xiaodong||Male|40|In Office|32.48|No|
||supervisor||||||
|Feng Junbin|Deputy GM|Male|53|In office|52.31|No|
|Zhu Meizhu|Deputy GM|Male|51|In Office|51.85|No|
||Secretary to the||||||
|Jiang Peng||Female|45|In office|35.71|No|
||board of directors||||||
|Lou Chao|Director|Male|61|Former|-|Yes|
|Zhang Hong|Deputy GM|Male|50|Former|48.80|No|
|Total|--|--|--|--|438.09|--|

 Notes：During the reporting period, staff receive annual performance pay included pre-tax remuneration of 2013 Incentive equity to directors, supervisors or/and senior executives in the reporting period
□Applicable√Not applicable
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report VI. Particulars about employees.
1. Staff jobs, education, job title number and proportion refer to the following pie chart:
|||
|-|-|
|Number of in-service staff of the parent company（person）|48|
|Number of in-service staff of the main subsidiaries（person）|1,231|
|Total number of the in-service staff（person）|1,279|
|Total number of staff receiving remuneration in the current||
||1,388|
|period（person）||
|The number of the parent company and the main subsidiary’s||
||109|
|retired staffs who need to bear the cost（person）||
|Professional||
|Classified according by Professions|Number of persons（person）|
|Production|855|
|Sales|33|
|Technical|106|
|Financial|33|
|Administrative|252|
|Total|1,279|
|Education||
|Classified according by education background|Number of persons（person）|
|Postgraduate or above|30|
|Universities|180|
|Colleges|125|
|Mid-school or below|944|
|Total|1,279|

 2. Remuneration policies
In the year 2015, the company carried out employees' compensation management work in strict accordance with relevant national laws and company regulations, and revised compensation management system as per the company's needs and policy changes. The impeccable compensation system safeguarded the fairness and rationality of employees' compensation, provided appropriate returns and incentives to employees in terms of their contributions, and facilitated the co-development of employees and company. In the compensation management system, company refined relevant regulations, such as Shenzhen Textile (Holdings) Co., Ltd Special Awards Regulation, Shenzhen Textile (Holdings) Co., Ltd Occupational Pension Regulation, Shenzhen Textile (Holdings)
Co., Ltd housing Provident Fund regulation, etc, which embodied company's humanistic concern.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report 3.Training pllan
Company targeted to improve professional skills and support company's operations, it required each post to complete the forms of Training Needs Questionnaire, Internal Training Courses Recommendation Form, Employee Individual Development Plan, and company formulated personal and company annual training plans in accordance with these forms, and simultaneously balanced individual with company and internal training with external training. Company carried out demand investigation and training evaluation, etc when organizing training projects to safeguard training effectiveness, so that the company's training plan and content are in line with positions and overall demands ofcompany’s development, and continuously improve the overall quality of employees in order to achieve a win-win situation together with employees.
4. Outsourcing situation
□ Applicable√ Not applicable
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report IX. Administrative structure
I.Basic state of corporate governance
In the reporting period, the company regulated operations and strengthen risk control in strict accordance with Securities Law, Corporation Law, the Shenzhen Stock Exchange Standard Operation Instructions for Main-Board Listed Companies, Corporate Governance Standards for Listed Companies and other related laws and regulations, to ensure a healthy and stable development. At present, the basically sound governance system, normative business operation and impeccable corporate governance structure meet the requirements of the normative documents for regarding corporate governance of listed companies issued by the China Securities Regulatory Commission.
In 2015, company held a total of 2 general meetings, convened general meetings, standardized voting procedures to safeguard the effectiveness and legality in strict accordance with the regulations and requirements of Corporation Law, Articles of Corporation and Rule of Procedure of Shareholders' Meeting. Companies actively protected the voting rights of minority investors, and general meetings were convened in the form of live network to adequately assure small investors of their rights to exercise.
In 2015, the board of directors held 8 general meetings, and the convening and voting procedures were all conducted in strict accordance with the Articles of Corporation and Rule of Procedure of Shareholders' Meeting. All the directors performed directors ' duties, exercisedirectors’ rights, attended related meetings and actively participated in the training and became familiar with relevant laws and regulations with serious, diligent and honest attitudes. Independent directors independently performed their duties in strict accordance with Articles of Corporation, The independent director system and other relevant laws and regulations, expressed fully their independent opinions on corporate operation, decision-making, and important matters, etc. Strategy, audit, remuneration, evaluation, nomination committees were established under board of directors, all committees functioned properly, and performed duties such as internal audits, compensation assessment, nomination of senior management personnel, and provided scientific and professional advisory opinions for board ofdirectors’ decision-making.
In 2015, the board of supervisors held 5 meetings. The board of supervisors strictly followed the requirements of Articles of Corporation and Rules of procedure of the board of supervisors and other relevant laws and regulations, supervised the legal compliance of the duties performed by company's financial personnel and directors, managers and other senior management personnel in the aim of maintaining the legitimate rights and interests of the company and its shareholders. All the supervisors fulfilled their obligations, exercised their rights according to the laws. The convening and voting procedures of the board of supervisors were legal, and the resolutions were legal and valid. The establishment and implementation of board of supervisors played an active role in improving corporate governance structure and regulating corporate operations.
In 2015, we further increased information transparency, accomplishedinvestors’ protection and propaganda work. In the reporting period, except disclosing information in a real, accurate, timely, fair and complete manner in accordance with the regulatory requirements, various platforms were made full use of, such as telephone, e-mail, website, especially the interactive platform of investors in Shenzhen Stock Exchange, solved questions brought by investors, and communicated with medium and small investors interactively, and ensure all the investors obtained
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report equal opportunities for informal access. Meanwhile, in the aim of improving the transparency of listed companies, company acceptedinvestors’ on-site investigation to have comprehensive understandings of the company's business situation through face-to-face communication with management, also urged the company established a responsibility to return on investors, improved and enhanced the corporate governance standards.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the relevant provisions of CSRC,
√Yes□No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant provisions of CSRC.
\ Shenzhen Investment Holdings Co., Ltd., the holding shareholder of the company, is a Shenzhen SASAC enterprise. The company has complied with the relevant provisions on the state-owned asset management of holding shareholders to report non-public information to holding shareholders, mainly including:Letters submitted monthly index table; fee schedule during the reporting, financial assets table, summary quarterly deposits and borrowings and financing.In order to strengthen the management of non-public information, the company has strictly controlled the scope of learners, standardized the process of information delivery and strictly implemented as per the “Management System on Learner of Insider Information”, took practical measures to prevent inside information leaks and insider trading.
In addition, there is no difference among the governance of the company, “Company Law” and the relevant provisions of China Securities Regulatory Commission.
II. Independence and Completeness in business, personnel , assets, organization and finance
The code of conduct of the controlling shareholders of the company did not go beyond the general meetings directly or indirectly to interfere with the decision-making and business activities, the company had independent and complete business and autonomous operation capacity , achieved “five point separation” in respect of personnel, financial, asset, agencies, business.
III. Competition situations of the industry
□ Applicable√ Not Applicable
IV. Annual General Meeting and ExtraordinaryShareholders’ Meetings in the Reporting Period
1.Annual General Meeting
|||||||
|-|-|-|-|-|-|
|||Investor||||
|Sessions|Type||Meeting Date|Disclosure date|Disclosure index|
|||participation ratio||||
||||||The first provisional|
|The first provisional|||||shareholders’|
||Provisional|||||
|shareholders’|||||General meeting|
||shareholders’|0.02%|February 3,2015|February 4,2015||
|General meeting in|||||in 2015|
||General Meeting|||||
|2015|||||(No.2015-07)|
||||||published on|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||||
|-|-|-|-|-|-|
||||||Securities Times,|
||||||China Securities|
||||||Journal, Shanghai|
||||||Securities|
||||||News ,Hong Kong|
||||||Commercial Daily|
||||||and Juchao|
||||||Website|
||||||（http://www.cnin|
||||||fo.com.cn）|
||||||Annual General|
||||||LMeeting of|
||||||2014(No.2015-26)|
||||||published on|
||||||Securities Times,|
||||||China Securities|
|Annual Genral|Annual General|||||
|||0.03%|May 20,2015|May 21,2015|Journal, Shanghai|
|Meeting of 2014|Meeting|||||
||||||Securities|
||||||News ,Hong Kong|
||||||Commercial Daily|
||||||and Juchao Website|
||||||（http://www.cninfo|
||||||.com.cn）|

2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore□ Applicable√Not applicable
V. Responsibility performance of independent directors in report period
1. The attending of independent directors to board meetings andshareholders’ general meeting
||||||||
|-|-|-|-|-|-|-|
|The attending of independent directors|||||||
||Number of|||||Failure to|
||||Number of||||
||Board meetings|||Number of||personally attend|
|Independent||Number of spot|meetings||Number of||
||necessary to be|||attendances by||board meetings|
|Directors||attendances|attended by||absence||
||attended in the|||representative||successively|
||||Communication||||
||reporting period|||||twice (Yes/No)|
|Zhang Yong|8|1|7|0|0|No|
|Shi Weihong|8|2|6|0|0|No|
|He Qiang|8|0|7|1|0|No|
|Number of general meetings attended||2|||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||
|-|
|by independent directors as non-voting|
|delegates|

Notes to failure to personally attend Board Meetings Successively Twice
N/A
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes√No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independentdirector’s advice to the Company been accepted
√Yes□No
Explanation on acceptance of or failure to accept an independentdirector’s advice to the Company.
In 2015, independent directors worked in the Company for not less than 10 working days. Except attending shareholders' general meetings, board meetings and meetings of special committees on time, they also actively participated in the activities organized by supervision authority. In the report period, Independent directors expressed independent opinions on the proposals of the board of directors.The independent director issued comments on the board of directors, (Refer to Independent Directors 2015 Annual Report disclosed in http://www.cninfo.com.cn on March 31, 2016). They gave many opinions and suggestions during meetings and adjour nment and the Company adopted all of them.
IV. Duty Performance of Special Committees under the Board of Directors in the Reporting Period The independent directors of the company are the key members of all professional committees of the Board of Directors, and are in the majority and the conveners of Audit Committee, Remuneration and Appraisal Committee and Nomination Committee. Also, all the three independent directors can attend the daily meeting held by every special committee on time.
(1) Audit Committee: during the reporting period, the Audit Committee has held two meetings, carefully examined the regular reports of the company and effectively implemented the work schedule of annual reports. Also, the Audit Committee has reviewed the internal control of the company, supervised the effective implementation of internal control, the self-assessment of internal control, and heard the reports of production operation, financial status and development of major matters filed by the management. Before the annual report audited by the Board of Directors, the Audit Committee shall communicate with annual audit accountant for the audit opinion, comprehend the audit condition, and make a comprehensive and objective evaluation of the current annual works finished by the auditors and their professional quality. During the reporting period, Proposal on Carry a meeting ficused on hiring audit institutions, self-assessment report of the internal control, the Final Accou nting Report and other matters and reach a resolution.
(2) Remuneration and Appraisal Committee: During the reporting period, the Remuneration and Appraisal
Committee has held one meetings, During the reporting period, Carry a meeting ficused on 2014 performance
appraisal of senior management and reach a resolution.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report Nominating Committee: in the reporting period, the Nominating Committee held 1 meeting, convened meetings regarding the appointment of Secretary of the Board of Directors formulated resolutions.
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting period
□Yes√No
The supervisory Committee has no objection aginst any matters under supervision in the reporting period
VIII. Assessment and incentive Mechanism for Senior executives
The company complies with “Executive Compensation Management and Evaluation System” to conduct the evaluation for the accomplishment of annual work of the senior executives. The salaries of the senior executives are determined according to the duty scope, post value, individual ability, wages level on the market, economic profits of the company and operation goal accomplishment of senior executives with adhering to the principle of market orientation, responsibility with unified right, and incentive and equal restriction. During the reporting period, the senior executives are all qualified in 2014 after evaluation. The directors and the general manager have conducted the feedback on the annual appraisal evaluation for the senior executives in accordance with the “Executive Compensation Management and Evaluation System” and proposed the recommendation for improvement.
IX. Internal control situations
1.Specific situations on major defects of internal control discovered during report period
□ Yes√ No
||
|-|
|About the significant Defects of the internal control found in the internal control self-assessment report in the reporting period|
|The identification and rectification of deficiency of the internal control:|
|1. The identification and rectification of deficiency of the internal control in the financial statement|
|In accordance with above identification standard of deficiency of the internal control in the financial statement,|
|there is no the serious and important deficiency of internal control in the financial statement during the reporting|
|period.|
|2.The identification and rectification of deficiency of the internal control except for that of the financial|
|statement in accordance with above identification standard of deficiency of the internal control except for that of|
|the financial statement, there is no the serious and important deficiency of internal control except for that of the|
|financial statement during the reporting period.|

2.Self-evaluation report on internal control
|||
|-|-|
|Disclosure date of appraisal report on||
||March 31,2016|
|internal control||
|Disclosure index of appraisal report on|Juchao Website:（http://www.cninfo.com.cn）, Selfevaluation report of internal control|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|internal control|in 2015 of Peking Certified Public Accountants (QXSZ(2016)No.||
|Proportion of total unit assets covered by|||
|appraisal in the total assets of the|||
||100.00%||
|consolidated financial statements of the|||
|company|||
|Proportion of total unit incomes covered|||
|by appraisal in the total business incomes|||
||100.00%||
|of the consolidated financial statements of|||
|the company|||
|Standards of Defects Evaluation|||
|Category|Financial Report|Non-financial Report|
|||In the following circumstances, the|
|||company was identified as existing|
|||non-financial –reporting related|
|||significant defects of internal controlling|
|||defects:|
|||The business activities of the company|
|||seriously violated national laws and|
||The defects related to financial reports were||
|||regulations; (2) The decision-making|
||divided into general defects, important|process of "Three-Importance&|
||defects and significant defects according to|One-Large" were unscientific, leading to|
||their severity. Significant defects referred to|major decision errors, and causing major|
||one or multiple combinations of controlling|property loses to the company; (3)|
||defects, which may lead to serious deviation|Massive loss of key posts or technology|
||from the controlling objectives. Important|talents; (4) The controlling system|
||defects referred to one or multiple|involving important business fields of the|
|Qualitative criteria|||
||combinations of controlling defects, and|company failed; (5) It Caused serious|
||their severity and economic consequences|negative effects on business of the|
||were below significant defects, but they|company, and the effects couldn’t be|
||could still lead to serious deviation from the|eliminated; (6) The evaluation results of|
||controlling objectives. General defects|internal control were significant defects,|
||referred to other internal controlling defects|and couldn’t get effective rectification.|
||which couldn't constitute significant defects|Important defects referred to one or|
||or important defects.|multiple combinations of controlling|
|||defects, and their severity and economic|
|||consequences were below significant|
|||defects, but they could still lead to|
|||serious deviation from the controlling|
|||objectives. General defects referred to|
|||other internal controlling defects which|
|||couldn't constitute significant defects or|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|||important defects.|
||Misstatement amount of financial statement||
||fell into the following intervals: significant||
||defects: Misstatement amount ≥ 1.5% of||
||total revenue; Misstatement amount ≥ 10%||
||of gross profit; Misstatement amount ≥ 1%||
||of total asset; Misstatement amount ≥ 5% of||
||net asset. significant defects: 0.5% of Total||
||revenue ≤Misstatement amount ＜ 1.5% of||
||total revenue; 5% of gross profit||
||≤Misstatement amount ＜ 10% of gross||
|Quantitative criteria||Not applicable|
||profit; 0.5% of Total asset ≤Misstatement||
||amount ＜ 1% of total revenue; 3% of Net||
||assets ≤Misstatement amount ＜ 5% of net||
||assets. General defects:0% of total revenue||
||＜Misstatement amount＜0.5% of Total||
||revenue; 2% of gross profitt ＜Misstatement||
||amount＜5% of total profit; 0% of total||
||assets ＜Misstatement amount＜0.5 of total||
||assets; 0% of net assets ＜Misstatement||
||amount＜3% of net assets.||
|Number of major defects in financial|||
||0||
|reporting（a）|||
|Number of major defects in non financial|||
||0||
|reporting (a)|||
|Number of important defects in financial|||
||0||
|reporting（a）|||
|Number of important defects in non|||
||0||
|financial reporting（a）|||

X. Internal Control audit report
√ Applicable□Not applicable
||
|-|
|Review opinions in the internal control audit report|
|To all shareholders of Shenzhen Textile (Holdings) Co., Ltd.：|
|According to the relevant requirements of the “Audit Guideline of Enterprise Internal Control” and the Chinese|
|CPA criteria, the company has audited the effectiveness of internal control of the financial statement of Shenzhen|
|Textile (Holdings) Co., Ltd. (Shenzhen Textile) at the date of December 31, 2015.|
|1. The responsibility of enterprise for the internal control. According to the provisions of “Fundamental Norms|
|for Enterprise Internal Control”, “Operation Guideline of Enterprise Internal Control” and “Evaluation Guideline|
|of Enterprise Internal Control”, the company has established, perfected and effectively implemented the internal|
|control, and made an evaluation for its effectiveness, which are the responsibilities of the Board of Directors of|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
|Shenzhen Textile.||
|2. The responsibility of CPA. The company shall be responsible for the expression of audit opinions on the||
|effectiveness of internal control in the financial statement and the disclosure of serious deficiency of internal||
|control except for the financial statement on the basis of the implementation of audit.||
|3. The inherent limitation of internal control. There is the possibility of unpreventable errors. In addition, due to||
|the change of situation, the inappropriate internal control is maybe shown, or the control policy and the abidance||
|of procedure can be reduced. Based on the audit results of internal control, the future internal control is expected||
|to have a certain risk.||
|4. The audit opinions of internal control in the financial statement. The company believes that Shenzhen Textile||
|has maintained the effective internal control of the financial statement in all the major aspects according to||
|“Fundamental Norms for Enterprise Internal Control” and the relevant provisions on December 31, 2015.||
|Peking Certified Public Accountants(Special General Partnership)||
|Chinese C.P.A.||
|Xiao Yi||
|March 29, 2016 Chinese C.P.A.||
|Lan Tao||
|Disclosure date of audit report||
||Disclosure|
|of internal control (full-text)||
|Index of audit report of||
||March 31,2016|
|internal control (full-text)||
||Juchao Website: （http://www.cninfo.com.cn）;Audit reort of internal control of Peking|
|Internal audit report’s opinion|Certified Public Accountants (QXSZ(2016)No.1563|
|Type of audit report on internal||
||Unqualified auditor’s report|
|control||
|Whether there is significant||
||No|
|defectin non-financial report||

Has the CPAs issued a qualifiedauditor’s report of internal control .
□ Yes√No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of Directors
√Yes□No
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report X. Financial Report
I. Audit report
|||
|-|-|
|Type eof audit opinion|Standard Unqualified Audit Opinion|
|Date for signing the auditor’s report|March 29,2016|
||Peking Certified Public Accountants(Special General|
|Name of audit firm||
||Partnership)|
|The audit report number|Qin Xin Zi【2016】No.1564|
|Name of the certified accountants|Xiao Yi, Lan Tao|

Auditors’ Report
Qin Xin Shen Zi(2016)]No. . To all shareholders of Shenzhen Textile (Holdings) Co.,Ltd.：
We audited accompanying financial statements of Shenzhen Textile (Holdings) Co., Ltd.(the “Company),
including Consolidated and parent Company balance sheet as of December 31, 2015, and the Parent Company and Consolidated Income statement, The parent company and Consolidated cash flow statement ,The parent Company and Consolidated Statements of Changes in equity for the year then ended, and the notes to the financial
statements .
1. The responsibility of the Management for the financial statements
Shenzhen Textile (Holdings) Co., Ltd’s. management is responsible for the preparation and fair presentation of these financial statements this responsibility includes : (1) Prepare the financial statements according to business enterprises regulation, so that making reasonable accounting estimate;(2) Design, implementation and
maintenance of internal control related to the preparation of financial statements so that financial statements are free from material misstatement caused by fraudulent practices or errors.
2. Responsibility of certified public accountants
We are responsible for expressing opinions on financial statements based on our audit. We conducted audit in accordance with the audit criteria for Chinese certified public accountants. The audit criteria for Chinese certified public accountants require us to abide by professional ethics, plan and conduct audit to obtain reasonable
assurance as to whether financial statements are free from material misstatement.
Audit involves carrying out audit procedure to obtain the audit evidences about the amounts and disclosure of financial statements. The selected audit procedure relies on the judgment of certified public accountants, including
the appraisal of risk of material misstatement of financial statements used by fraudulent practices or errors. While
appraising risks, we considered the internal control related to the preparation of financial statements to design
proper audit procedure. The audit also includes the appraisal of suitability of accounting policies selected by the
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report management, the reasonableness of accounting estimate and the overall presentation of financial statements. We believe that the audit evidences obtained by us are full and appropriate and provide a basis for expressing audit opinion.
3. Audit opinion
In our opinion, the financial statements of the Company Wharf present fairly, in all material respects, the
company’s and consolidated financial position as of 31 December 2015, and theCompany’s and consolidated results of operations and cash flows for the year then ended in accordance with Accounting Standards for
Business Enterprises.
Peking Certified Public Accountants(Special General Partnership)
Chinese C.P.A. Xiao Yi
Chinese C.P.A. Lan Tao
March 29,2016
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report II. Financial Statements
\Statement in Financial Notes are carried in RMB/CNY
1.Consolidated Balance sheet
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|752,314,871.53|1,101,771,561.28|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair value|||
|with variations accounted into current|||
|income account|||
|Derivative financial assets|||
|Bill receivable|18,841,745.16|43,412,635.19|
|Account receivable|182,766,372.05|156,123,570.35|
|Prepayments|7,853,818.19|27,075,094.81|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts|||
|receivable|||
|Interest receivable|30,298,938.80|13,357,311.32|
|Dividend receivable|||
|Other account receivable|45,133,672.10|41,843,377.39|
|Repurchasing of financial assets|||
|Inventories|308,775,044.88|230,659,122.24|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|513,553,675.47|61,748,415.41|
|Total of current assets|1,859,538,138.18|1,675,991,087.99|
|Non-current assets：|||
|Loans and payment on other’s behalf|||
|disbursed|||
|Disposable financial asset|43,241,524.06|87,592,297.11|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|22,879,269.06|20,795,057.33|
|Property investment|134,389,963.05|140,905,275.45|
|Fixed assets|790,019,487.16|824,871,367.33|
|Construction in progress|75,803,586.70|79,822,149.34|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|40,626,936.34|41,771,402.89|
|R & D petrol|||
|Goodwill||9,614,758.55|
|Long-germ expenses to be amortized|633,541.50|560,877.06|
|Differed income tax asset|2,262,532.65|2,607,644.23|
|Other non-current asset|||
|Total of non-current assets|1,109,856,840.52|1,208,540,829.29|
|Total of assets|2,969,394,978.70|2,884,531,917.28|
|Current liabilities|||
|Short-term loans|53,866,521.87|24,676,594.72|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Bill payable|||
|Account payable|227,528,808.60|153,026,682.35|
|Advance payment|28,199,415.11|41,135,510.00|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|35,307,822.40|37,736,705.46|
|Tax payable|14,682,643.09|8,912,594.55|
|Interest payable|39,088,887.96|33,037,218.68|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Dividend payable|||
|Other account payable|125,775,723.80|112,654,863.06|
|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|75,346,136.30|
|Other current liability|||
|Total of current liability|564,449,822.83|486,526,305.12|
|Non-current liabilities：|||
|Long-term loan|120,000,000.00|124,653,863.70|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Long-term payable employees’s|||
|remuneration|||
|Special payable|||
|Expected liabilities|||
|Deferred income|99,524,165.58|66,546,079.96|
|Deferred income tax liability|10,851,444.74|10,556,420.24|
|Other non-current liabilities|||
|Total non-current liabilities|230,375,610.32|201,756,363.90|
|Total of liability|794,825,433.15|688,282,669.02|
|Owners’ equity|||
|Share capital|506,521,849.00|506,521,849.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|1,585,130,051.37|1,585,130,051.37|
|Less：Shares in stock|||
|Other comprehensive income|3,212,187.35|33,389,117.46|
|Special reserves|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Surplus reserves|70,539,319.86|64,403,027.10|
|Common risk provision|||
|Undistributed profit|9,166,137.97|6,805,203.33|
|Total of owner’s equity belong to the|||
||2,174,569,545.55|2,196,249,248.26|
|parent company|||
|Minority shareholders’ equity|||
|Total of owners’ equity|2,174,569,545.55|2,196,249,248.26|
|Total of liabilities and owners’ equity|2,969,394,978.70|2,884,531,917.28|

 Legal Representative: Zhu Jun Person in charge ofaccounting：Zhu Jun Accounting Dept Leader: Mu Linying 2. Balance sheet of Parent Company
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|271,582,749.03|457,379,886.16|
|Financial assets measured at fair value|||
|with variations accounted into current|||
|income account|||
|Derivative financial assets|||
|Bill receivable||1,800,000.00|
|Account receivable|819,054.57|468,887.97|
|Prepayments|1,754,880.00|2,771,374.00|
|Interest receivable|22,294,015.02|10,640,957.35|
|Dividend receivable|7,798,378.51||
|Other account receivable|72,543,709.78|64,581,392.46|
|Inventories|||
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|260,000,000.00||
|Total of current assets|636,792,786.91|537,642,497.94|
|Non-current assets：|||
|Disposable financial asset|41,741,524.06|84,292,297.11|
|Expired investment in possess|||
|Long-term receivable|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Long term share equity investment|1,779,103,035.67|1,797,651,565.42|
|Property investment|126,873,096.51|132,976,776.39|
|Fixed assets|26,579,978.92|27,002,348.21|
|Construction in progress|38,792,110.90|31,482,502.19|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|1,378,688.61|1,627,715.16|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|||
|Deferred income tax asset|2,556,126.29|3,061,417.30|
|Other non-current asset|||
|Total of non-current assets|2,017,024,560.96|2,078,094,621.78|
||2,653,817,347.87|2,615,737,119.72|
|Total of assets|||
|Current liabilities|||
|Short-term loans|||
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Bill payable|||
|Account payable|411,743.57|411,743.57|
|Advance payment|639,024.58|639,024.58|
|Employees’ wage payable|7,299,686.80|5,878,352.45|
|Tax payable|12,558,340.06|6,660,135.95|
|Interest payable|||
|Dividend payable|||
|Other account payable|77,332,555.09|67,479,912.27|
|Liabilities held for sales|||
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|98,241,350.10|81,069,168.82|
|Non-current liabilities：|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Long-term loan|||
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Employees’ wage payable|||
|Special payable|||
|Expected liabilities|||
|Deferred income|||
||278,469.57|10,556,420.24|
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total of Non-current liabilities|278,469.57|10,556,420.24|
|Total of liability|98,519,819.67|91,625,589.06|
|Owners’ equity|||
|Share capital|506,521,849.00|506,521,849.00|
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|1,576,547,069.58|1,576,547,069.58|
|Less：Shares in stock|||
|Other comprehensive income|3,212,187.35|33,389,117.46|
|Special reserves|||
|Surplus reserves|70,539,319.86|64,403,027.10|
|Undistributed profit|398,477,102.41|343,250,467.52|
|Total of owners’ equity|2,555,297,528.20|2,524,111,530.66|
|Total of liabilities and owners’ equity|2,653,817,347.87|2,615,737,119.72|

 Legal Representative: Zhu Jun Person in charge ofaccounting：Zhu Jun Accounting Dept Leader: Mu Linying 3.Consolidated Income Statement
In RMB
||||
|-|-|-|
|Items|Report period|Same period of the previous year|
|I. Income from the key business|1,226,746,791.62|1,210,952,548.57|
|Incl：Business income|1,226,746,791.62|1,210,952,548.57|
|Interest income|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|1,302,269,276.48|1,317,382,360.52|
|Incl：Business cost|1,142,511,012.84|1,154,743,462.84|
|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|7,624,971.76|7,905,969.24|
|Sales expense|11,743,914.73|14,067,625.17|
|Administrative expense|103,044,704.30|119,496,105.45|
|Financial expenses|-24,448,318.10|-30,392,840.60|
|Asset impairment loss|61,792,990.95|51,562,038.42|
|Add：Gains from change of fir value|||
|（“-”for loss）|||
|Investment gain（“-”for loss）|94,812,557.58|23,294,636.54|
|Incl: investment gains from affiliates|2,431,042.20|1,788,818.78|
|Gains from currency exchange（“-”for|||
|loss）|||
|III. Operational profit（“-”for loss）|19,290,072.72|-83,135,175.41|
|Add ：Non-operational income|24,122,339.62|21,159,989.26|
|Including：Income from disposal of|||
||235,533.62|135,925.51|
|non-current assets|||
|Less：Non business expenses|260,665.61|83,757.49|
|Incl：Loss from disposal of non-current|||
||260,642.59|83,643.89|
|assets|||
|IV.Total profit(“-”for loss)|43,151,746.73|-62,058,943.64|
|Less：Income tax expenses|34,654,519.33|51,532,384.62|
|V. Net profit|8,497,227.40|-113,591,328.26|
|Net profit attributable to the owners of|||
||8,497,227.40|-113,591,328.26|
|parent company|||
|Minority shareholders’ equity|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|VI. Other comprehensive income|-30,176,930.11|9,854,344.17|
|Net of profit of other comprehensive inco|||
|me attributable to owners of the parent co|-30,176,930.11|9,854,344.17|
|mpany.|||
|（I）Other comprehensive income items|||
|that will not be reclassified into|||
|gains/losses in the subsequent|||
|accounting period|||
|1.Re-measurement of defined benefit pla|||
|ns of changes in net debt or net assets|||
|2.Other comprehensive income under the|||
|equity method investee can not be reclass|||
|ified into profit or loss.|||
|（II）|||
||-30,176,930.11|9,854,344.17|
|Other comprehensive income that will b|||
|e reclassified into profit or loss.|||
|1.Other comprehensive income under the|||
|equity method investee can be reclassifie|||
|d into profit or loss.|||
|2.Gains and losses from changes in fair v|||
||-30,375,486.14|9,886,627.82|
|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|||
||198,556.03|-32,283.65|
|ncial statements|||
|6.Other|||
|7.Net of profit of other comprehensive i|||
|ncome attributable to Minority|||
|shareholders’ equity|||
|VII. Total comprehensive income|-21,679,702.71|-103,736,984.09|
|Total comprehensive income attributable|||
||-21,679,702.71|-103,736,984.09|
|to the owner of the parent company|||
|Total comprehensive income attributable|||
|minority shareholders|||
|VIII. Earnings per share|||
|（I）Basic earnings per share|0.02|-0.22|
|(II)Diluted earnings per share|0.02|-0.22|

The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0, last period the combined party realized RMB 0.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report 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|64,473,351.83|63,124,318.89|
|Incl：Business cost|12,333,803.24|12,482,856.41|
|Business tax and surcharge|5,494,540.21|5,530,512.60|
|Sales expense|||
|Administrative expense|28,207,859.60|31,313,410.67|
|Financial expenses|-19,528,024.29|-15,035,734.73|
|Asset impairment loss|14,939,945.14|-5,163,448.04|
|Add：Gains from change of fir value|||
|（“-”for loss）|||
|Investment gain（“-”for loss）|58,283,064.18|22,062,282.28|
|Incl: investment gains from affiliates|2,431,042.20|1,788,818.79|
|II. Operational profit（“-”for loss）|81,308,292.11|56,059,004.26|
|Add ：Non-operational income|2,047,648.92|3,993,511.97|
|Including：Income from disposal of|||
||235,233.62||
|non-current assets|||
|Less：Non business expenses|13,020.92||
|Incl：Loss from disposal of non-current|||
||13,020.92||
|assets|||
|III.Total profit(“-”for loss)|83,342,920.11|60,052,516.23|
|Less：Income tax expenses|21,979,992.46|14,039,596.21|
|IV. Net profit（“-”for net loss）|61,362,927.65|46,012,920.02|
|V.Net of profit of other comprehensive i|||
||-30,176,930.11|9,854,344.17|
|ncome|||
|（I）Other comprehensive income items|||
|that will not be reclassified into|||
|gains/losses in the subsequent|||
|accounting period|||
|1.Re-measurement of defined benefit pl|||
|ans of changes in net debt or net assets|||
|2.Other comprehensive income under th|||
|e equity method investee can not be recl|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|assified into profit or loss.|||
|（II）|||
|Other comprehensive income that will b|-30,176,930.11|9,854,344.17|
|e reclassified into profit or loss.|||
|1.Other comprehensive income under th|||
|e equity method investee can be reclassi|||
|fied into profit or loss.|||
|2.Gains and losses from changes in fair|||
||-30,375,486.14|9,886,627.82|
|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|||
||198,556.03|-32,283.65|
|ancial statements|||
|6.Other|||
|VI. Total comprehensive income|31,185,997.54|55,867,264.19|
|VII. Earnings per share：|||
|（I）Basic earnings per share|||
|(II)Diluted earnings per share|||

Legal Representative: Zhu Jun Person in charge ofaccounting：Zhu Jun Accounting Dept Leader: Mu Linying 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|||
||1,247,874,437.38|1,225,517,209.48|
|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|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Net cash received from reinsurance|||
|business|||
|Net increase of client deposit and|||
|investment|||
|Net increase of amount from disposal|||
|financial assets that measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Net increase of inter-bank fund|||
|received|||
|Net increase of trade financial asset|||
|disposal|||
|Net increase of repurchasing business|||
|Tax returned|68,431,596.59|77,012,597.33|
|Other cash received from business|||
||95,526,183.51|75,754,386.32|
|operation|||
|Sub-total of cash inflow|1,411,832,217.48|1,378,284,193.13|
|Cash paid for purchasing of|||
||1,157,396,626.23|1,165,323,109.41|
|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|128,028,856.25|134,633,573.32|
|Taxes paid|36,667,118.26|80,706,284.79|
|Other cash paid for business activities|50,155,116.37|46,322,719.66|
|Sub-total of cash outflow from business|||
||1,372,247,717.11|1,426,985,687.18|
|activities|||
|Cash flow generated by business|||
||39,584,500.37|-48,701,494.05|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
||89,640,023.95|21,307,417.68|
|retrieving|||
|Cash received as investment gains|4,871,581.37|3,298,701.39|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|2,950.00|118,690.00|
|long-term assets|||
|Net cash received from disposal of|||
|||100,386,000.00|
|subsidiaries or other operational units|||
|Other investment-related cash received|30,591,780.82|202,371,196.29|
|Sub-total of cash inflow due to|||
||125,106,336.14|327,482,005.36|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets|17,134,529.58|48,919,307.85|
|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|||
||490,059,223.58|100,000,000.00|
|activities|||
|Sub-total of cash outflow due to|||
||507,193,753.16|148,919,307.85|
|investment activities|||
|Net cash flow generated by investment|-382,087,417.02|178,562,697.51|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Incl: Cash received as investment from|||
|minor shareholders|||
|Cash received as loans|244,759,302.00|160,095,760.79|
|Cash received from bond placing|||
|Other financing –related ash received||279.31|
|Sub-total of cash inflow from financing|||
||244,759,302.00|160,096,040.10|
|activities|||
|Cash to repay debts|255,569,374.85|135,419,166.07|
|Cash paid as dividend, profit, or|||
||792,115.53|402,425.29|
|interests|||
|Incl: Dividend and profit paid by|||
|subsidiaries to minor shareholders|||
|Other cash paid for financing activities|||
|Sub-total of cash outflow due to|||
||256,361,490.38|135,821,591.36|
|financing activities|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Net cash flow generated by financing|-11,602,188.38|24,274,448.74|
|IV. Influence of exchange rate|||
||4,531,621.61|182,755.14|
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||-349,573,483.42|154,318,407.34|
|equivalents|||
|Add: balance of cash and cash|||
||1,098,232,359.02|943,913,951.68|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||748,658,875.60|1,098,232,359.02|
|equivalents at the end of term|||

Legal Representative: Zhu Jun Person in charge ofaccounting：Zhu Jun Accounting Dept Leader: Mu Linying 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|||
||63,862,579.19|62,399,316.68|
|rending of services|||
|Tax returned|||
|Other cash received from business|||
||18,819,989.01|20,495,286.17|
|operation|||
|Sub-total of cash inflow|82,682,568.20|82,894,602.85|
|Cash paid for purchasing of|||
||4,835,838.70|6,021,459.84|
|merchandise and services|||
|Cash paid to staffs or paid for staffs|14,524,922.32|17,957,199.61|
|Taxes paid|22,477,306.54|68,706,268.66|
|Other cash paid for business activities|9,551,257.85|10,533,550.85|
|Sub-total of cash outflow from business|||
||51,389,325.41|103,218,478.96|
|activities|||
|Cash flow generated by business|||
||31,293,242.79|-20,323,876.11|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
||46,395,738.95|19,302,132.19|
|retrieving|||
|Cash received as investment gains|3,777,417.02|2,048,981.52|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|long-term assets|||
|Net cash received from disposal of|||
|||100,386,000.00|
|subsidiaries or other operational units|||
|Other investment-related cash received|30,591,780.82|567,210.00|
|Sub-total of cash inflow due to|||
||80,764,936.79|122,304,323.71|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets|7,855,316.71|10,228,512.00|
|and other long-term assets|||
|Cash paid as investment|||
|Net cash received from subsidiaries and|||
|other operational units|||
|Other cash paid for investment|||
||290,000,000.00||
|activities|||
|Sub-total of cash outflow due to|||
||297,855,316.71|10,228,512.00|
|investment activities|||
|Net cash flow generated by investment|-217,090,379.92|112,075,811.71|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|||
|Cash received from bond placing|||
|Other financing –related ash received||279.31|
|Sub-total of cash inflow from financing|||
|||279.31|
|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||279.31|
|IV. Influence of exchange rate|||
|||6,989.91|
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||-185,797,137.13|91,759,204.82|
|equivalents|||
|Add: balance of cash and cash|||
||457,379,886.16|365,620,681.34|
|equivalents at the beginning of term|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|VI ..Balance of cash and cashequivalents at the end of term|||
||271,582,749.03|457,379,886.16|

Legal Representative: Zhu Jun Person in charge ofaccounting：Zhu Jun Accounting Dept Leader: Mu Linying 7. Consolidated Statement on Change inOwners’ Equity
Amount in this period
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in this period|||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||||
|||Other Equity||||||||||||
|||||||||||||Minor||
|||instrusment|||||Other|||Commo|||Total of|
|Items||||||||||||||
||Share|||||Less:||Speciali|||Attribut|shareho||
||||||Capital||Compre||Surplus|n risk|||owners’|
||Capita|prefer||||Shares||zed|||able|lders’||
||||Sustai||reserves||hensive||reserves|provisio|||equity|
||l|red||Other||in stock||reserve|||profit|equity||
||||nable||||Income|||n||||
|||stock||||||||||||
||||debt|||||||||||
||506,52||||1,585,1||||||||2,196,2|
|I.Balance at the|||||||33,389,||64,403,||6,805,2|||
||1,849.||||30,051.||||||||49,248.|
|end of last year|||||||117.46||027.10||03.33|||
||00||||37||||||||26|
|Add: Change of||||||||||||||
|accounting||||||||||||||
|policy||||||||||||||
|Correcting of||||||||||||||
|previous errors||||||||||||||
|Merger of entities||||||||||||||
|under common||||||||||||||
|control||||||||||||||
|Other||||||||||||||
|II.Balance at the|506,52||||1,585,1||||||||2,196,2|
||||||||33,389,||64,403,||6,805,2|||
|beginning of|1,849.||||30,051.||||||||49,248.|
||||||||117.46||027.10||03.33|||
|current year|00||||37||||||||26|
|III.Changed in the|||||||-30,176,||6,136,2||2,360,9||-21,679,|
|current year|||||||930.11||92.76||34.64||702.71|
|（1）Total||||||||||||||
||||||||-30,176,||||8,497,2||-21,679,|
|comprehensive||||||||||||||
||||||||930.11||||27.40||702.71|
|income||||||||||||||
|（II）Investment||||||||||||||
|or decreasing of||||||||||||||
|capital by owners||||||||||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|1．Ordinary Share|||
|s invested by hare|||
|holders|||
|2．Holders of oth|||
|er equity instrume|||
|nts invested capital|||
|3．Amount of|||
|shares paid and|||
|accounted as|||
|owners’ equity|||
|4．Other|||
|（III）Profit|6,136,2|-6,136,2|
|allotment|92.76|92.76|
|1.Providing of|6,136,2|-6,136,2|
|surplus reserves|92.76|92.76|
|2.Providing of|||
|common risk|||
|provisions|||
|3．Allotment to the|||
|owners (or|||
|shareholders)|||
|4．Other|||
|(IV) Internal|||
|transferring of|||
|owners’ equity|||
|1. Capitalizing of|||
|capital reserves (or|||
|to capital shares)|||
|2. Capitalizing of|||
|surplus reserves|||
|(or to capital|||
|shares)|||
|3．Making up|||
|losses by surplus|||
|reserves.|||
|4. Other|||
|(V). Special|||
|reserves|||
|1. Provided this|||
|year|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|2．Used this term|||||||
|（VI）Other|||||||
||506,52|1,585,1||||2,174,569,545.55|
|IV. Balance at the|||3,212,1|70,539,|9,166,1||
||1,849.|30,051.|||||
|end of this term|||87.35|319.86|37.97||
||00|37|||||

 Amount in last year
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year|||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||||
|||Other Equity||||||||||Minor||
|||instrusment|||||Other|||Commo|||Total of|
|Items||||||||||||||
|||||||||||||shareho||
||ShareCapita|prefer|||Capital|Less:Shares|Compre|Specialized|Surplus|n risk|Attributable|lders’|owners’|
||l|red|Sustai|Other|reserves|in stock|hensive|reserve|reserves|provisio|profit|equity|equity|
|||stock|nabledebt||||Income|||n||||
||506,52||||1,582,9||||||||2,297,8|
|I.Balance at the|||||||23,534,||59,801,||124,997|||
||1,849.||||90,396.||||||||46,577.|
|end of last year|||||||773.29||735.10||,823.59|||
||00||||13||||||||11|
|Add: Change of||||||||||||||
|accounting||||||||||||||
|policy||||||||||||||
|Correcting of||||||||||||||
|previous errors||||||||||||||
|Merger of entities||||||||||||||
|under common||||||||||||||
|control||||||||||||||
|Other||||||||||||||
|II.Balance at the|506,52||||1,582,9||||||||2,297,8|
||||||||23,534,||59,801,||124,997|||
|beginning of|1,849.||||90,396.||||||||46,577.|
||||||||773.29||735.10||,823.59|||
|current year|00||||13||||||||11|
||||||||||||-118,19||-101,59|
|III.Changed in the|||||2,139,6||9,854,3||4,601,2|||||
||||||||||||2,620.2||7,328.8|
|current year|||||55.24||44.17||92.00|||||
||||||||||||6||5|
|（1）Total|||||||||||-113,59||-103,73|
||||||||9,854,3|||||||
|comprehensive|||||||||||1,328.2||6,984.0|
||||||||44.17|||||||
|income|||||||||||6||9|
|（II）Investment||||||||||||||
|or decreasing of||||||||||||||
|capital by owners||||||||||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|1．Ordinary Share|||
|s invested by hare|||
|holders|||
|2．Holders of oth|||
|er equity instrume|||
|nts invested capital|||
|3．Allotment to the|||
|owners (or|||
|shareholders)|||
|4．Other|||
|（III）Profit|4,601,2|-4,601,2|
|allotment|92.00|92.00|
|1.Providing of|4,601,2|-4,601,2|
|surplus reserves|92.00|92.00|
|2.Providing of|||
|common risk|||
|provisions|||
|3．Allotment to the|||
|owners (or|||
|shareholders)|||
|4．Other|||
|(IV) Internal|||
|transferring of|||
|owners’ equity|||
|1. Capitalizing of|||
|capital reserves (or|||
|to capital shares)|||
|2. Capitalizing of|||
|surplus reserves|||
|(or to capital|||
|shares)|||
|3．Making up|||
|losses by surplus|||
|reserves.|||
|4. Other|||
|(V) Special|||
|reserves|||
|1. Provided this|||
|year|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|2．Used this term|||||||
|||2,139,6||||2,139,6|
|（VI）Other|||||||
|||55.24||||55.24|
||506,52|1,585,1||||2,196,2|
|IV. Balance at the|||33,389,|64,403,|6,805,2||
||1,849.|30,051.||||49,248.|
|end of this term|||117.46|027.10|03.33||
||00|37||||26|

 Legal Representative: Zhu Jun Person in charge ofaccounting：Zhu Jun Accounting Dept Leader: Mu Linying 8. Statement of change inowner’s Equity of the Parent Company
Amount in this period
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in this period|||||||||||
|||Other Equity instrusment||||||||||
||||||||Other|||||
|||||Other||Less:|||||Total of|
|Items|Share||||Capital||Compreh|Specialize|Surplus|Attribut||
|||preferre|Sustain|||Shares in||||able|owners’|
||Capital||||reserves||ensive|d reserve|reserves|||
|||d stock|able|||stock||||profit|equity|
||||||||Income|||||
||||debt|||||||||
||506,521,||||1,576,547||33,389,11||64,403,02|343,250|2,524,111|
|I.Balance at the||||||||||||
||849.00||||,069.58||7.46||7.10|,467.52|,530.66|
|end of last year||||||||||||
|Add: Change of||||||||||||
|accounting||||||||||||
|policy||||||||||||
|Correcting of||||||||||||
|previous errors||||||||||||
|Other||||||||||||
|II.Balance at the||||||||||||
||506,521,||||1,576,547||33,389,11||64,403,02|343,250|2,524,111|
|beginning of||||||||||||
||849.00||||,069.58||7.46||7.10|,467.52|,530.66|
|current year||||||||||||
|III.Changed in the|||||||-30,176,9||6,136,292|55,226,|31,185,99|
|current year|||||||30.11||.76|634.89|7.54|
|（1）Total||||||||||||
||||||||-30,176,9|||61,362,|31,185,99|
|comprehensive||||||||||||
||||||||30.11|||927.65|7.54|
|income||||||||||||
|（II）Investment or||||||||||||
|decreasing of||||||||||||
|capital by owners||||||||||||
|1．Ordinary Share||||||||||||
|s invested by hareh||||||||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|olders|||||||
|2．Holders of oth|||||||
|er equity instrume|||||||
|nts invested capital|||||||
|3．Allotment to the|||||||
|owners (or|||||||
|shareholders)|||||||
|4．Other|||||||
|（III）Profit||||6,136,292|-6,136,2||
|allotment||||.76|92.76||
|1.Providing of||||6,136,292|-6,136,2||
|surplus reserves||||.76|92.76||
|2．Allotment to the|||||||
|owners (or|||||||
|shareholders)|||||||
|3．Other|||||||
|(IV)Internal|||||||
|transferring of|||||||
|owners’ equity|||||||
|1. Capitalizing of|||||||
|capital reserves (or|||||||
|to capital shares)|||||||
|2. Capitalizing of|||||||
|surplus reserves|||||||
|(or to capital|||||||
|shares)|||||||
|3．Making up|||||||
|losses by surplus|||||||
|reserves.|||||||
|4. Other|||||||
|(V) Special|||||||
|reserves|||||||
|1. Provided this|||||||
|year|||||||
|2．Used this term|||||||
|（VI）Other|||||||
|IV. Balance at the|506,521,|1,576,547|3,212,187|70,539,31|398,477|2,555,297,528.20|
|end of this term|849.00|,069.58|.35|9.86|,102.41||

Amount in last year
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year|||||||||||
|||Other Equity instrusment||||||||||
||||||||Other|||||
|||||Other||Less:|||||Total of|
|Items|Share||||Capital||Compreh|Specialize|Surplus|Attribut||
|||preferre|Sustain|||Shares in||||able|owners’|
||Capital||||reserves||ensive|d reserve|reserves|||
|||d stock|able|||stock||||profit|equity|
||||||||Income|||||
||||debt|||||||||
||506,521,||||1,574,407||23,534,77||59,801,73|301,838|2,466,104|
|I.Balance at the||||||||||||
||849.00||||,414.34||3.29||5.10|,839.50|,611.23|
|end of last year||||||||||||
|Add: Change of||||||||||||
|accounting||||||||||||
|policy||||||||||||
|Correcting of||||||||||||
|previous errors||||||||||||
|Other||||||||||||
|II.Balance at the||||||||||||
||506,521,||||1,574,407||23,534,77||59,801,73|301,838|2,466,104|
|beginning of||||||||||||
||849.00||||,414.34||3.29||5.10|,839.50|,611.23|
|current year||||||||||||
|III.Changed in the|||||2,139,655||9,854,344||4,601,292|41,411,|58,006,91|
|current year|||||.24||.17||.00|628.02|9.43|
|（1）Total||||||||||||
||||||||9,854,344|||46,012,|55,867,26|
|comprehensive||||||||||||
||||||||.17|||920.02|4.19|
|income||||||||||||
|（II）Investment or||||||||||||
|decreasing of||||||||||||
|capital by owners||||||||||||
|1．Ordinary Share||||||||||||
|s invested by hareh||||||||||||
|olders||||||||||||
|2．Holders of oth||||||||||||
|er equity instrume||||||||||||
|nts invested capital||||||||||||
|3．Allotment to the||||||||||||
|owners (or||||||||||||
|shareholders)||||||||||||
|4．Other||||||||||||
|（III）Profit|||||||||4,601,292|-4,601,2||
|allotment|||||||||.00|92.00||
|1.Providing of|||||||||4,601,292|-4,601,2||
|surplus reserves|||||||||.00|92.00||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|2．Allotment to the|||||||
|owners (or|||||||
|shareholders)|||||||
|3．Other|||||||
|(IV)Internal|||||||
|transferring of|||||||
|owners’ equity|||||||
|1. Capitalizing of|||||||
|capital reserves (or|||||||
|to capital shares)|||||||
|2. Capitalizing of|||||||
|surplus reserves|||||||
|(or to capital|||||||
|shares)|||||||
|3．Making up|||||||
|losses by surplus|||||||
|reserves.|||||||
|4. Other|||||||
|(V) Special|||||||
|reserves|||||||
|1. Provided this|||||||
|year|||||||
|2．Used this term|||||||
|||2,139,655||||2,139,655|
|（VI）Other|||||||
|||.24||||.24|
|IV. Balance at the|506,521,|1,576,547|33,389,11|64,403,02|343,250|2,524,111|
|end of this term|849.00|,069.58|7.46|7.10|,467.52|,530.66|

 Legal Representative: Zhu Jun Person in charge ofaccounting：Zhu Jun Accounting Dept Leader: Mu Linying
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Shenzhen Textile (Holdings) Co., Ltd.
Notes to financial statements
Year 2015
(Currency unit for the statements in the notes to these financial statements: RMB)
I. Basic Information of the Company
(1)Company Profile
1. Enterprise registration address, organization mode and headquarter address.
The company was previously the Shenzhen Textile Industry Company, on April 13, 1994, approved
by the Letter(1994)No.15 issued by Shenzhen Municipal People's Government, the Company was
restructured and named as Shenzhen Textile (Holdings) Co., Ltd. In the same year, approved by the
(1994) No.19 file of Shenzhenshi, the shares of the company were listed in Shenzhen Stock
Exchange. The Company has got the corporate business certification of Shensizi No.
440301105031014, Registration address and headquarter address are 6/F,Shenfang Building,
Huaqiang Road. North, Futian District, Shenzhen.
2.Enterprise’s business nature and major business operation.
At present, the Company is mainly engaged in high-tech industry focusing onR&D, production and
marketing ofpolarizer’s for liquid crystal display, management of properties in bustling business
districts of Shenzhen and reserved high-class textile and garment business.
3. Approval of the financial statements reported
The financial statements have been authorized for issuance by the Board of Directors of the Group
on March 29,2016.
(2)Scope of consolidated financial statements
1.As of the end of the reporting period, there are 7 subsidiaries companies included in the
consolidated financial statements:Shenzhen Shengbo Optoelectronic Technology Co., Ltd.,
Shenzhen Lisi Industrial Development Co., Ltd.,Shenzhen Huaqiang Hotel, Shenzhen Shenfang
Property Management Co., Ltd., Shenzhen Beautify Garments Co., Ltd., Shenzhen Shenfang Import
& Export Co., Ltd. and Shengtou (Hongkong) Co.,Ltd.
2．The scope of consolidated financial statements this period did not change.
II.Basis for the preparation of financial statements
（1）Basis for the preparation
The basis of the financial statements was continuous operation assumption, based on actual
transactions, in accordance with the relevant provisions of Accounting Standards for Business
Enterprises and in accordance with this Note III, "Significant accounting policies and accounting
estimates".
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
(2).Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will cause material doubts as to the continuation capability of the Company.
III. Important accounting policies and estimations
1. Statement on complying with corporate accounting standards
The financial statements prepared by the Company comply with the requirements of corporate
accounting standards. They truly and completely reflect the financial situations, operating results,
equity changes and cash flow, and other relevant information of the company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on
December 31 as the fiscal year.
3. Operating cycle
Normal business cycle is realized by the Company in cash or cash equivalents from the purchase of
assets for processing until. Less than 1 year is for the normal operating cycle in the company.
With regard to less than 1 year for the normal operating cycle, the assets realized or the liabilities
repaid at maturity within one year as of the balance sheet date shall be classified into the current
assets or the current liabilities.
4. Accounting standard money
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting process method of enterprise consolidation under same and different
controlling.
（1）Enterprise merger under samecontrol：
For a business combination involving enterprises under common control, the party that, on the
combination date, obtains control of another enterprise participating in the combination is the
absorbing party, while that other enterprise participating in the combination is a party being
absorbed. Combination date is the date on which the absorbing party effectively obtains control of
the party being absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the
enterprise being combined at the combination date. The difference between the carrying amount of
the net assets obtained and the carrying amount of consideration paid for the combination (or the
total face value of shares issued) is adjusted to the capital premium in the capital reserve. If the
balance of the capital premium is insufficient, any excess is adjusted to retained earnings.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
The cost of a combination incurred by the absorbing party includes any costs directly attributable to the combination shall be recognized as an expense through profit or loss for the current period when incurred.
Accounting Treatment of the Consolidated Financial Statements:
The long-term equity investment held by the combining party before the combination will change if
the relevant profit and loss, other comprehensive income and other owner equity are confirmed
between the ultimate control date and the combining date for the combining party and the combined
party on the acquirement date, and shall respectively offset the initial retained incomes or the profits
and losses of the current period during the comparative statement.
(2)Business combination involving entities not under common control
A business combination involving enterprises not under common control is a business combination
in which all of the combining enterprises are not ultimately controlled by the same party or parties
both before and after the business combination. For a business combination not involving
enterprises under common control, the party that, on the acquisition date, obtains control of another
enterprise participating in the combination is the acquirer, while that other enterprise participating in
the combination is the acquire. Acquisition date is the date on which the acquirer effectively obtains
control of the acquire.
The difference of the merger cost minus the fair value shares of identifiable net assets obtained by
the acquire during the merger on the acquisition date, is recognized as the business reputation.
While the merger cost is less than the fair value shares of identifiable net assets obtained by the
acquire during the merger, all the measurement on the identifiable assets, the liabilities, the fair
value of liabilities and the merger cost obtained by the acquire should firstly be rechecked, and the
difference shall be recorded into the current profits and costs if the merger cost is still less than the
fair value shares of identifiable net assets obtained by the acquire during the merger after
rechecking.
Where the temporary difference obtained by the acquirer was not recognized due to inconformity
with the conditions applied for recognition of deferred income tax, if, within the 12 months after
acquisition, additional information can prove the existence of related information at acquisition date
and the expected economic benefits on the acquisition date arose from deductible temporary
difference by the acquiree can be achieved, relevant income tax assets can be recognized, and
goodwill offset. If the goodwill is not sufficient, the difference shall be recognized as profit of the
current period.
For a business combination not involving enterprise under common control, which achieved in
stages that involves multiple exchange transactions, according to “The notice of the Ministry of
Finance on the issuance of Accounting Standards Interpretation No. 5” (CaiKuai[2012] No. 19) and
Article51 of “Accounting Standards for Business Enterprises No.33 - Consolidated Financial
Statements” on the “package deal” criterion, to judge the multiple exchange transitions whether they
are the"package deal". If it belong to the “package deal” in reference to the preceding paragraphs of
this section and “long-term investment” accounting treatment, if it does not belong to the “package
deal” to distinguish the individual financial statements and the consolidated financial statements
related to the accounting treatment:
In the individual financial statements, the total value of the book value of theacquirer’s equity
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
investment before the acquisition date and the cost of new investment at the acquisition date, as the
initial cost of the investment, theacquirer’s equity investment before the acquisition date involved
in other comprehensive income, in the disposal of the investment will be in other comprehensive
income associated with the use of infrastructure and the acquire directly related to the disposal of
assets or liabilities of the same accounting treatment (that is, except in accordance with the equity
method of accounting in the defined benefit plan acquire is remeasured net changes in net assets or
liabilities other than in the corresponding share of the lead, and the rest into the current investment
income).
In the combination financial statements, the equity interest in the acquire previously held before the
acquisition date re-assessed at the fair value at the acquisition date, with any difference between its
fair value and its carrying amount is recorded as investment income. The previously-held equity
interest in the acquire involved in other comprehensive income and other comprehensive income
associated with the purchase of the foundation should be used party directly related to the disposal
of assets or liabilities of the same accounting treatment (that is, except in accordance with the equity
method of accounting in the acquire is remeasured defined benefit plans other than changes in net
liabilities or net assets due to a corresponding share of the rest of the acquisition date into current
investment income).
6.Preparation of the consolidated financial statements
(1)The scope of consolidation
The scope of consolidation for the consolidated financial statements is determined on the basis of control. Control is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its operating activities. The relevant events refer to the activities that have significant influence on the return to the invested party. In accordance with the specific conditions, the relevant events of the invested party should conclude the sale and purchase of goods and services, the management of the financial assets, the purchase and disposal of the assets, the research and development activities, the financing activities and so on.
The scope of consolidation includes the Company and all of the subsidiaries. Subsidiary is an enterprise or entity under the control of the Company.
Once the change in the relevant facts and circumstances leading to the definition of the relevant elements involved in the control of the change, the company will be re-evaluated.
( 2)Preparation of the consolidated financial statements.
The Company based on its own and its subsidiaries financial statements, in accordance with other relevant information, to prepare the consolidated financial statements.
For a subsidiary acquired through a business combination not under common control, the operating results and cash flows from the acquisition (the date when the control is obtained) are included in the consolidated income statement and consolidated statement of cash flows, as appropriated; no adjustment is made to the opening balance and comparative figures in the consolidated financial statements. Where a subsidiary and a party being absorbed in a merger by absorption was acquired during the reporting period, through a business combination involving enterprises under common control, the financial statements of the subsidiary are included in the consolidated financial statements. The results of operations and cash flow are included in the consolidated balance sheet and
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
the consolidated income statement, respectively, based on their carrying amounts, from the date that common control was established, and the opening balances and the comparative figures of the consolidated financial statements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of the Company, the Company makes necessary adjustments to the financial statements of the subsidiary based on theCompany’s own accounting period or accounting policies. Where a subsidiary was acquired during the reporting period through a business combination not under common control, the financial statements was reconciliated on the basis of the fair value of identifiable net assets at the date of acquisition.
Intra-Group balances and transactions, and any unrealized profit or loss arising from intra-Group transactions, are eliminated in preparing the consolidated financial statements.
Minority interest and the portion in the net profit or loss not attributable to the Company are presented separately in the consolidated balance sheet withinshareholders’/owners’ equity and net profit. Net profit or loss attributable to minority shareholders in the subsidiaries is presented separately as minority interest in the consolidated income statement below the net profit line item.
When the amount of loss for the current period attributable to the minority shareholders of a subsidiary exceeds the minorityshareholders’ portion of the opening balance ofshareholders’/equity of the subsidiary, the excess is allocated against the minority interests.
When the Company loses control of a subsidiary due to the disposal of a portion of an equity investment or other reasons, the remaining equity investment is re-measured at its fair value at the date when control is lost. The difference between 1) the total amount of consideration received from the transaction that resulted in the loss of control and the fair value of the remaining equity investment and 2) the carrying amounts of the interest in the formersubsidiary’s net assets immediately before the loss of the control is recognized as investment income for the current period when control is lost. Other comprehensive income related to the former subsidiary's equity investment, using the foundation and the acquire directly related to the disposal of the same assets or liabilities are accounted when the control is lost(ie, in addition to the former subsidiary is remeasured at the net defined benefit plan or changes in net assets and liabilities resulting from, the rest are transferred to the current investment income). The retained interest is subsequently measured according to the rules stipulated in the - “Chinese Accounting Standards for Business Enterprises No.2 - Long-term equity investment” or “Chinese Accounting Standards for Business Enterprises No.22 - Determination and measurement of financial instruments”.
The company through multiple transactions step deal with disposal of the subsidiary's equity investment until the loss of control, need to distinguish between equity until the disposal of a subsidiary's loss of control over whether the transaction is package deal. Terms of the transaction disposition of equity investment in a subsidiary, subject to the following conditions and the economic impact of one or more of cases, usually indicates that several transactions should be accounted for as a packagedeal:①these transactions areconsidered。simultaneously, or in the case of mutual influence made,②these transactions as a whole in order to achieve a complete business results;③the occurrence of a transaction depends on occurs at least one other transaction;④a transaction look alone is not economical, but when considered together with other transaction is economical.
If they does not belong to the package deal, each of them separately, as the case of a transaction in accordance with “without losing control over the disposal of a subsidiary part of a long-term equity
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
investments“principles applicable accounting treatment. Until the disposal of the equity investment loss of control of a subsidiary of the transactions belonging to the package deal, the transaction will be used as a disposal of a subsidiary and the loss of control of the transaction. However, before losing control of the price of each disposal entitled to share in the net assets of the subsidiary 's investment corresponding to the difference between the disposal, recognized in the consolidated financial statements as other comprehensive income, loss of control over the transferred together with the loss of control or loss in the period.
7.Joint venture arrangements classification and Co-operation accounting treatment
(1)Joint arrangement
A joint arrangement is an arrangement of which two or more parties have jointcontrol，depending of the rights and obligation of the Company in the joint arrangement. A joint operation is a joint
arrangement whereby the Company has rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the Company has rights to the net assets of the arrangement.
(2)Co-operation accounting treatment
When the joint venture company for joint operations, confirm the following items and share common business interests related to:
（1）Confirm individual assets and common assets held based on shareholdings;
（2）Confirm individual liabilities and shared liabilities held based on shareholdings;
（3）Confirm the income from the sales revenue of co-operate business output
（4）Confirm the income from the sales of the co-operate business output based on shareholdings;
（5）Confirm the individual expenditure and co-operate business cost based on shareholdings.
(3)When a、company is a joint ventures, joint venture investment will be recognized as long-term
equity investments .
8.Recognition Standard of Cash& Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and investments having short holding term (normally will be due within three months from the day of purchase), with strong liquidity and easy to be exchanged into certain amount of cash that can be measured reliably and have low risks of change.
9.Foreign Currency Transaction
（1）Foreign Currency Transaction
The approximate shot exchange rate on the transaction date is adopted and translated as RMB
amount when the foreign currency transaction is initially recognized. On the balance sheet date, the
monetary items of foreign currency are translated as per the shot exchange rate on the balance sheet
date, the foreign exchange conversion gap due to the exchange rate, except for the balance of
exchange conversion arising from special foreign currency borrowings capitals and interests for the
purchase and construction of qualified capitalization assets, shall be recorded into the profits and
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
losses of the current period. The non-monetary items of foreign currency measured at the historical
cost shall still be translated at the spot exchange rate on the transaction date, of which the RMB
amount shall not be changed. The non-monetary items of foreign currency measured at the fair
value shall be translated at the spot exchange rate on the fair value recognized date, the gap shall be
recorded into the current profits and losses or other comprehensive incomes.
(2) Translation Method of Foreign Currency Financial Statement
For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet date is
adopted as the translation exchange rate. For theowner’s equity, the shot exchange rate on the
transaction date is adopted as the translation exchange rate, with the exception of “undistributed
profits”. The incomes and expenses in the income statement shall be translated at the spot exchange
rate or the approximate exchange rate on the transaction date. The translation gap of financial
statement of foreign currency converted above shall be listed in other comprehensive incomes under
theowner’s equity in the consolidated balance sheet.
10.Financial tools
One financial asset or financial liability shall be recognized when the company becomes the party in the financial instrument contract. The financial assets and the financial liabilities are measured at the fair value in the initial recognition. For the financial assets and liabilities that measured at the fair values and the variation included in the current profits and losses, the relative transaction expenses shall be directly recorded into the profits and losses. For the financial assets and liabilities of other categories, the expenses related to transactions are recognized as initial amount.
1 Determination of financial assets andliabilities’ fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties in anarm’s length transaction. For a financial instrument which has an active market, the Company uses quoted price in the active market to establish its fair value. The
quoted price in the active market refers to the price that can be regularly obtained from exchange
market, agencies, industry associations, pricing authorities; it represents the fair market trading price
in the actual transaction. For a financial instrument which does not have an active market, the
Company establishes fair value by using a valuation technique. Valuation techniques include using
recentarm’s length market transactions between knowledgeable, willing parties, reference to the
current fair value of another instrument that is substantially the same, discounted cash flow analysis
and option pricing models.
2. Classification, recognition and measurement of financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. On initial recognition, theCompany’s financial assets are classified into including financial
assets at fair value though profit or loss, held-to maturity investments, loans and receivables and
available-for-trade assets.
（1） Financial assets at fair value through profit or loss:
Including financial assets held-for-trade and financial assets designated at fair value through profit or loss. Financial asset held-for-trade is the financial asset that meets one of the following conditions:
A. the financial asset is acquired for the purpose of selling it in a short term;
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
B. the financial asset is a part of a portfolio of identifiable financial instruments that are collectively managed, and there is objective evidence indicating that the enterprise recently manages this portfolio for the purpose of short-term profits;
C. the financial asset is a derivative, except for a derivative that is designated and effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price from an active market) whose fair value cannot be reliably measured. For such kind of financial assets, fair values are adopted for subsequent measurement.
Financial asset is designated on initial recognition as at fair value through profit or loss only when it meets one of the following conditions:
A. the designation eliminates or significantly reduces the inconsistency in the measurement or recognition of relevant gains or losses that would otherwise arise from measuring the financial instruments on different bases.
B. a Group of financial instruments is managed and its performance is evaluated on a fair value basis, and is reported to theenterprise’s key management personnels. Formal documentation regarding risk management or investment strategy hasprepared。
Financial assets at fair value through profit or loss are subsequently measured at the fair value. Any gains or losses arising from changes in the fair value and any dividends or interest income earned on the financial assets are recognized in the profit or loss.
（2）Investment held-to maturity
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity. Such kind of financial assets are subsequently measured at amortized cost using the effective interest method. Gains or losses arising from derecognition, impairment or amortization are recognized in profit or loss for the current period.
Effective interest rate is the rate that exactly discounted estimated future cash flows through the expected life of the financial asset or financial liability or, where appropriate, a shorter period to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Company shall estimate future cash flow considering all contractual terms of the financial asset or financial liability without considering future credit losses, and also consider all fees paid or received between the parties to the contract giving rise to the financial asset and financial liability that are an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.
（3）Loans and receivables
Loans and receivables are non-derivative financial assets with fixed determinable payment that are not quoted in an active market. Financial assets classified as loans and receivables by the Company include note receivables, account receivables, interest receivable dividends receivable and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from derecognition, impairment or amortization is recognized in profit or loss.
（4）Financial assets available-for-trade
Financial assets available-for-trade include non-derivative financial assets that are designated on initial recognition as available for trade, and financial assets that are not classified as financial assets
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
at fair value through profit or loss, loans and receivables or investment held-to-maturity.
Financial assets available-for-trade are subsequently measured at fair value, and gains or losses arising from changes in the fair value are recognized as other comprehensive income and included in the capital reserve, except that impairment losses and exchange differences related to amortized cost of monetary financial assets denominated in foreign currencies are recognized in profit or loss, until the financial assets are derecognized, at which time the gains or losses are released and recognized in profit or loss. Interests obtained and dividends declared by the investee during the period in which the financial assets available-for-trade are held, are recognized in investment gains.
3. Impairment of financial assets
The Group assesses at the balance sheet date the carrying amount of every financial asset except for the financial assets that measured by the fair value. If there is objective evidence indicating a financial asset may be impaired, a provision is provided for the impairment.
The company shall make an independent impairment test on the financial assets with significant single amounts, and carry out an independent impairment test on the financial assets with insignificant single amounts, or conduct an impairment-related test after they are included in a combination of financial assets with similar credit risk features so as to carry out. Where, upon independent test, the financial asset (including those financial assets with significant single amounts and those with insignificant amounts) has not been impaired, it shall be included in a combination of financial assets with similar risk features so as to conduct another impairment test. The financial assets which have suffered from an impairment loss in any single amount shall not be included in any combination of financial assets with similar risk features for any impairment test.
（1）Impairment on held-to maturity investment, loans and receivables
The financial assets measured by cost or amortized cost write down their carrying value by the estimated present value of future cash flow. The difference is recorded as impairment loss. If there is objective evidence to indicate the recovery of value of financial assets after impairment, and it is related with subsequent event after recognition of loss, the impairment loss recorded originally can be reversed. The carrying value of financial assets after impairment loss reversed shall not exceed the amortized cost of the financial assets without provisions of impairment loss on the reserving date.
（2）Impairment loss on available-for-trade financial assets
Where the fair value of the equity instrument investment drops significantly or not contemporarily according to the integrated relevant factors, an available-for-trade financial asset is impaired. The "serious decline" refers to the cumulative fair value declines more than30%; "non-temporary decline" refers to the continuous decline in the fair value of time over 12 months.
When an available-for-trade financial asset is impaired, the cumulative loss arising from declining in fair value that had been recognized in capital reserve shall be removed and recognized in profit or loss. The amount of the cumulative loss that is removed shall be difference between the acquisition cost with deduction of recoverable amount less amortized cost, current fair value and any impairment loss on that financial asset previously recognized in profit or loss.
If, after an impairment loss has been recognized, there is objective evidence that the value of the financial asset is recovered, and it is objectively related to an event occurring after the impairment loss was recognized, the initial impairment loss can be reversed and the reserved impairment loss on available-for-trade equity instrument is recorded in the profit or loss, the reserved impairment loss on available-for-trade debt instrument is recorded in the current profit or loss.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
The equity instrument where there is no quoted price in an active market, and whose fair value cannot be reliably measured, or impairment loss on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument shall not be reversed.
4. Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired;
2) the enterprise has transferred its rights to receive cash flows from the asset to a third party under a pass-through arrangement; or
3) the enterprise has transferred its rights to receive cash flows from the asset and either has transferred substantially all the risks and rewards of the asset, or has neither transferred norretained substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the enterprise has neither retained all the risks and rewards from the financial asset nor control over the asset, the asset is recognized according to the extent it exists as financial asset, and correspondent liability is recognized. The extent of existence refers the level of risk by the financial asset changes the enterprise is facing.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the carrying amount of the financial asset transferred; and the sum of the consideration received from the transfer and any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocated between the part that continues to be recognized and the part that is derecognized, based on the relative fair value of those parts. The difference between (a) the carrying amount allocated to the part derecognized; and (b) the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to the part derecognized which has been previously recognized in other comprehensive income, is recognized in profit or loss.
The Company uses recourse sale financial assets, or financial assets held endorser, determine almost all of the risks and rewards of ownership of the financial assets have been transferred if. Has transferred the ownership of the financial assets of almost all the risks and rewards to the transferee, the derecognition of the financial asset; retains ownership of the financial assets of almost all of the risks and rewards of financial assets that are not derecognised; neither transfers nor retains ownership of the financial assets of almost all of the risks and rewards, then continue to determine whether the enterprise retains control of the assets and the accounting treatment in accordance with the principles described in the preceding paragraphs.
5. Classification and measurement of financial liabilities
TheGroup’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss, relevant transaction costs are immediately recognized in profit or loss for the current period, and transaction costs relating to other financial liabilities are included in the initial recognition amounts.
(1)Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the initial recognition to be measured by the fair value follows the same criteria as the classification by which financial assets held-for-trade and financial assets designed at the initial recognition to be
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
measured by the fair value and their changes are recorded in the current profit or loss.For the financial liabilities measured by the fair value and changes recorded in the profit or loss, fair values are adopted for subsequent measurement. All the gains or losses on the change of fair value and the expenses on dividends or interests related to these financial liabilities are recognized in profit or loss for the current period.
（2）Other financial liabilities
Derivative financial liabilities that linked with equity instruments, which do not have a quoted price in an active market and their fair value cannot be measured reliably, is subsequently measured by cost Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Gains or losses arising from derecognition or amortization is recognized in profit or loss for the current period.
6. Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation (or part of it) is discharged or cancelled or has expired. An agreement between the Company (an existing borrower) and existing lender to replace original financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new liability.
When the Company derecognizes a financial liability or a part of it, it recognizes the difference between the carrying amount of the financial liability (or part of the financial liability) derecognized the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
7. Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
8. Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. The consideration received from issuing equity instruments, net of transaction costs, are added toshareholders’ equity. All types of distribution (excluding stock dividends) made by the Company to holders of equity instruments are deducted fromshareholders’ equity. The Group does not recognize any changes in the fair value of equity instruments.
11.Accounts Receivable
1.Accounts receivable with material specific amount and specific provisioned bad debt
preparation.
|||
|-|-|
|Judgment criteria oramount standard ofmaterial specific amount|The Client Identifies single amount of accounts receivable that is not less than RMB 1 million asaccount receivable that are individually significant in amount. The Client Identifies singleamount of accounts receivable that is not less than RMB 0.5 million as account receivable that|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
|or amount criteria：|are individually significant in amount.|
|Provision method withmaterial specific amountand provision of specificbad debt preparation：|Making an independent impairment test. If any objective evidence shows that it has beenimpaired, the impairment-related losses shall be recognized according to the gap between itspresent value of future cash flow less than its book value, and the several shall be determined towithdraw the bad debt provision. If there exists no the impairment after the impairment test,they shall be included in a combination of the receivables with similar risk features so as towithdraw the bad debt provision.|

2.The accounts receivable of bad debt provisions made by credit risk Group
(1) Recognition Criteria for the Group and Withdrawing Method of Bad Debt Provision
||
|-|
|Recognition Criteria|
|Division by Aging|

(2)Accounts on age basis in theportfolio：
||||
|-|-|-|
|Aging|||
||Rate for receivables(%)|Rate for other receivables(%)|
||5|5|
|Within 1 year（Included 1 year）|||
||10|10|
|1－2 years|||
||30|30|
|2－3 years|||
||50|50|
|Over 3 years|||

(3)Account receivable with non-material specific amount but specific bad debt preparation
|||
|-|-|
|Reasons of Withdrawing Individual Bad DebtProvision|There is any objective evidence shows that it has been impaired.|
|Withdrawing Method of Bad Debt Provision|The impairment-related losses shall be recognized according to the gapbetween its present value of future cash flow less than its book value.|

 12.Inventory
1.Investories class
Inventory shall include the finished products or goods available for sale during daily activities, the products in the process of production, the stuff and material consumed during the process of
production or the services offered.
2．Valuation method of inventory issued
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
The company calculates the prices of its inventories according to the weighted averages method
3. Recognition Criteria for the Net Realizable Value of Different Category of Inventory and Withdrawing Method of Inventory Falling Price Reserves
The inventory shall be measured by use of the lower between the cost and the net realizable value and the inventory falling price reserves shall be withdrawn as per the gap of single inventory cost minus the net realizable value at the balance sheet date. The net realizable value refers to the amounts that the estimated sale price of inventory minus the estimated costs ready to happen till the completion of works, the estimated selling expenses and the relevant expenses of taxation. The company shall recognize the net realizable value of inventory based on the acquired unambiguous evidence and in view of the purpose to hold the inventory, the influence of matters after the balance sheet date and other factors.
The net realizable value of inventory directly for sale shall be recognized according to the amounts of the estimated sale price of the inventory minus the estimated sale expenses and the relevant expenses of taxation during the process of normal production and operation. The net realizable value of inventory that required to conduct processing shall be recognized according to the amounts of the estimated sale price of the finished products minus the estimated costs ready to happen till the completion of works, the estimated selling expenses and the relevant expenses of taxation. On the balance sheet date, the net realizable value shall be respectively defined for the partial agreed with the contract price and others without the contract price in the same inventory, and the amounts of the inventory falling price reserves withdrawn or returned shall be respectively recognized in comparison with their corresponding costs.
4. Inventory System: Adopts the Perpetual Inventory System
5．Amortization method for low cost and short-lived consumable items and packaging materials
（1）Low cost and short-lived consumable items
Low cost and short-lived consumable items are amortized using immediate write-offmethod。
（2）Packaging materials
Packaging materials are amortized using
13.Held-for-sale assets
A non-current asset is classified as held-for-sale if all of the following conditions are satisfied:
1The asset is immediately sellable at its current condition per usual sales term applicable to the type of assets to which itbelongs；
2. the Company's has completed official decision to dispose the asset;
3. the Company has entered into irrevocable sales contract with the purchaser; and
4. the sales will be completed within one year.
Is classified as held for sale and the disposal of non current assets in the group of assets and liabilities, are classified as current assets and current liabilities.
Termination of operation to meet one of the following conditions have been disposed of or classified as held for sale, in the operation and the preparation of the financial statements to be able to differentiate the components alone in the company within:
1.This part of main business represents an independent or a main business area;
2.This part of the proposed disposal plans for a major business independent or a main business area;
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
3 This part is just to sell again and made subsidiary.
For the fixed assets held for sale, the company shall adjust the estimated net residual value of the fixed assets in order to make it reflecting the amount after the disposal costs deducted from the fair value, whichdoesn’t exceed the original book value of the fixed assets when the condition of holding for sale is met. The impairment losses of the assets shall be regarded and recorded into the current profits and losses if the original book value is more than the balance of the estimated net residual value after adjusting.
The assets or the disposal group held for sale no longer meet the recognized requirements of the fixed assets held for sale, the company shall terminate the classification of held-for-sale and measure based on the less one between the following amounts: (1) the amounts after adjusted for the assets or the disposal group classified as the book value before the held-for-sale according to the originally confirmed depreciation, amortization or impairment when supposed that have not classified as the held-for-sale. (2) the returned amounts thatcan’t be re-sold.
The intangible assets and other non-current assets held for sale shall be treated as per above principles.
14.Long-term equity investments
Long-term equity investments referred to in this section refer to the Company invested entity has control, joint control or significant influence over the long-term equity investments. The Company invested does not have control, joint control or significant influence over the long-term equity investments as financial assets available for sale or at fair value and the changes included financial assets through profit or loss.
Joint control is the Company control over an arrangement in accordance with the relevant stipulations are common, related activities and the arrangement must be after sharing control participants agreed to the decision-making. Significant influence is the Company s financial and operating policies of the entity has the right to participate in decision-making, but can not control or with other parties joint control over those policies.
1. Determination of Investment cost
The cost of a long-term equity investment acquired through business combination under common control is measured at the acquirer's share of the combination date book value of the acquiree's net equity in the ultimate controller's consolidated financial statements. The difference between the cost and book value of cash paid, non-monetary assets transferred and liabilities assumed is adjusted to capital reserves, and to retained earnings if capital reserves is insufficient. If the consideration is transferred by way of issuing equity instruments, the face value of the equity instruments issued is recognised in share capital and the difference between the cost of the face value of the equity instruments issued is adjusted to capital reserves, and to retained earnings if capital reserves is insufficient. The cost of a long-term equity investment acquired through business combination not under common control is the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued. (For the equity of the combined party under common control obtained step-by-step through multiple transactions and the business combination under common control ultimately formed, the company should respectively dispose all the transactions if belong to the package deal. For the package deal, all the transactions will be conducted the accounting treatment as the deal with acquisition of control. For the non-package deal, the shares of the book value of the
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
stockholders’equity/owners’ equity of the combined party in the consolidated financial statements of the ultimate control party shall be as the initial investment cost of the long-term equity investment, and the capital reserves shall be adjusted for the difference between the initial investment cost of long-term equity investment and the sum of the book value of long-term equity investment before merging and that of new consideration payment obtained on the merger date, or the retained earnings shall be adjusted if the capital reserves are insufficient to offset. As for the equity investment held before the merger date, the accounting treatment will not be conducted temporarily for other comprehensive income accounted by equity method or confirmed for the financial assets available for sale.)
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure of audit, legal services, valuation and consultancy and other administrative expenses, are recognised in profit or loss for the period during which the acquisition occurs. For the merger of enterprises not under the same control through gaining the shares of the combined enterprise by multiple steps of deals, it shall deal with it in the following two ways depending on that if it belongs to "a package deal": if it belongs to "a package deal", it shall deal with all the deals as one obtaining the control power; if it does not belong to "a package deal", it shall, on the date of merger, regard the sum of book value of theowner’s original equity of the merged enterprise and the newly increased investment cost as the initial cost of the long-term equity investment. For the shares originally held by this enterprise accounted for by weighted equity method, the relevant other comprehensive income shall not be accounted for temporarily. If the equity investment held originally can be classified as the financial assets for sale, the difference between the fair value and the book value, and the variation in the accumulative fair value of other comprehensive returns recorded originally will be transferred into the current profits and losses.
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure of audit, legal services, valuation and consultancy and other administrative expenses, are recognised in profit or loss for the period during which the acquisition occurs.
Long-term equity investments acquired not through business combination are measured at cost on initial recognition. Depending on the way of acquisition, the cost of acquisition can be the total cash paid, the fair value of equity instrument issued, the contract price, the fair value or book value of the assets given away in the case of non-monetary asset exchange, or the fair value of the relevant long-term equity investments. The cost of acquisition of a long-term equity investment acquired not through business combination also includes all directly associated expenses, applicable taxes and fees, and other necessary expenses. When the significant impact or the joint control but non-control on the invested party can be implemented due to the additional investment, the long-term equity investment cost is the sum of the fair value of the equity investment originally held and the new investment costs based on the recognition of “Accounting Standards for Enterprises No.22– Recognition and Measurement of Financial Instruments”.
2. Subsequent Measurement
To be invested joint control ( except constitute common operator ) or long-term equity investments significant influence are accounted for using the equity method. In addition, the Company's financial statements using the cost method of accounting for long-term equity can exercise control over the investee.
(1)Cost method of accounting for long-term equity investments
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash dividends or profits declared but not yet paid that are included in the price or consideration actually paid upon acquisition of the long-term equity investment, investment income is recognized in the period in accordance with the attributable share of cash dividends or profit distributions declared by the investee.
(2)Equity method of accounting for long-term equity investments
When using the equity method, the initial investment cost of long-term equity investment exceeds th
e investor's net identifiable assets of the fair share of the investment value, do not adjust the initial in
vestment cost of long-term equity investment; the initial investment cost is less than the investee uni
t share of identifiable net assets at fair value, the difference is recognized in profit or loss, while the
long-term equity investment adjustment costs.
Where the initial investment cost of a long-term equity investment exceeds the investingenterprise’s interest in the fair values of theinvestee’s identifiable net assets at the time of acquisition, no adjustment shall be made to the initial investment cost. The carrying amount of an long-term equity investment measured using the equity method is adjusted by the Company's share of the investee's net profit and other comprehensive income, which is recognised as investment income and other comprehensive income respectively. The carrying amount of an long-term equity investment measured using the equity method is reduced by profit distribution or cash dividends announced by the investee. The carrying amount of an long-term equity investment measured using the equity method is also adjusted by the investee's equity movement other than net profit, other comprehensive income and profit distribution, which is adjusted to capitalreserves。The net profit of the investee is adjusted by the fair value of the investee's identifiable assets as at acquistion. The financial statements and hence the net profit and other comprehensive income of an investee which does not adopt accounting policies or accounting period uniform with the Company is adjusted by the Company's accounting policies and accounting period. The Company's share of unrealised profit or loss arising from related party transactions between the Company and an associate or joint venture is deducted from investment income. Unrealised loss arising from related party transactions between the Company and an associate or joint venture which is associated with asset impairment is not adjusted. Where assets transferred to an associate or joint venture which form part of the Company's investment in the investee but which does not enable the Company obtain control over the investee, the cost of the additional investment acquired is measured at the fair value of assets transferred and the difference between the cost of the additional investment and the book value of the assets transferred is recognised in profit or loss. Where assets transferred to an associate or joint venture form an operation, the difference between the consideration received and the book value of the assets transferred in recognised in profit or loss. Where assets transferred from an associate or joint venture form an operation, the transaction is accounted for in accordance with CAS 20 - Business Combination, any gain or loss is reocgnised in profit or loss.
The Company's share of an investee's net loss is limited by the sum of the book value of the long-term equity investment and other net long-term investments in the investees. Where the Company has obligation to share additional net loss of the investee, the estimatedshare of loss recognised as accrued liabilities and investment loss. Where the Company has unrecognised share of loss of the investee when the investee generates net profit, the Company's unrecognised share of loss is reduced by the Company's share of net profit and when the Company's unrecognised share or loss is eliminated in full, the Company's share of net profit, if any, is recognised as investment income.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
(3)Acquisition of minority interest
The difference between newly increased equity investment due to acquisition of minority interests and portion of net asset cumulatively calculated from the acquisition date is adjusted as capital reserve. If the capital reserve is not sufficient to absorb the difference, the excess are adjusted against returned earnings.
(4)Disposal of long-term equity investment
Where the parent company disposes long-term investment in a subsidiary without a change in control, the difference in the net asset between the amount of disposed long-term investment and the amount of the consideration paid or received is adjusted to theowner’s equity. If the disposal of long-term investment in a subsidiary involves loss of control over the subsidiary, the related accounting policies in Note applies. For disposal of long-term equity investments in any situation other than the fore-mentioned situation, the difference between the book value of the investment disposed and the consideration received is recognised in profit or loss.
The investee's equity movement other than net profit, other comprehensive income and profit distribution is reocgnised in profit or loss proportionate to the disposal.
Where a long-term equity investment is measured by the equity method both before and after part disposal of the investment, cumulative other comprehensive income relevant to the investment recognised prior to the acquistion is treated in the same manner that the investee disposes the relevant assets or liabilities proportionate to the disposal. The investee's equity movement other than net profit, other comprehensive income and profit distribution is reocgnised in profit or loss proportionate to the disposal.
Where a long-term equity investment is measured at cost both before and after part disposal of the investment, cumulative other comprehensive income relevant to the investment recognised, as a result of accounting by equity method or recognition and measurement principles applicable to financial instruments, prior to the Company's acquisition of control over the investee is treated in the same manner that the investee disposes the relevant assets or liabilities and recognised in profit or loss proportionate to the disposal. The investee's equity movement other than net profit, other comprehensive income and profit distribution, as a result of accounting by equity method, is reocgnised in profit or loss proportionate to the disposal.
Where the Company's control over an investee is lost due to partial disposal of investment in the investee and the Company continues to have significant influence over the investee after the partial disposal, the investment in measured by the equity method in the Company's separate financial statements; where the Company's control over an investee is lost due to partial disposal of investment in the investee and the Company ceases to have significant influence over the investee after the partial disposal, the investment in measured in accordance with the recognition and measurement principles applicable to financial instruments in the Company's separate financialstatements and the difference between the fair value and the book value of the remaining investment at the date of loss of control is recognised in profit or loss. Cumulative other comprehensive income relevant to the investment recognised, as a result of accounting by equity method or recognition and measurement principles applicable to financial instruments, prior to the Company's acquisition of control over the investee is treated in the same manner that the investee disposes the relevant assets or liabilities on the date of loss of control. The investee's equity movement other than net profit, other comprehensive income and profit distribution, as a result of accounting by equity method, is reocgnised in profit or
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
loss when control is lost. Where the remaining investment is measured by equity method, the fore-mentioned other comprehensive income and other equity movement are recognised in profit or loss proportionate to the disposal; Where the remaining investment is measured in accordance with the recognition and measurement principles applicable to financial instruments, the fore-mentioned other comprehensive income and other equity movement are recognised in profit or loss in full.
Where the Company's joint control or significant influence over an investee is lost due to partial disposal of investment in the investee,the remaining investment in the investee is measured in accordance with the recognition and measurement principles applicable to financial instruments, the difference between the fair value and the book value of the remaining investment at the date of loss of joint control or significant influence is recognised in profit or loss.Cumulative other comprehensive income relevant to the investment recognised, as a result of accounting by equity method, prior to the partial disposal is treated in the same manner that the investee disposes the relevant assets or liabilities on the date of loss of joint control or significant influence. The investee's equity movement other than net profit, other comprehensive income and profit distribution is reocgnised in profit or loss when joint control or significant influence is lost.
Where the Company's control over an investee is lost through multiple disposals and the multiple disposals shall be viewed as one single transaction, the multiple disposals is accounted for one single transaction which result in the Company's loss of control over the investee. Each difference between the consideration received and the book value of the investment disposed is recognised in other comprehensive income and reclassified in full to profit or loss at the time when control over the investee is lost.
15.Investment property
1. The Measurement Mode of Investment Property
The investment property of the company includes the leased land use rights, the leased buildings,
the land use rights held and prepared to transfer after appreciation.
The company shall adopt the cost mode to measure the investment property.
2. Depreciation or Amortization Method by Use of Cost Mode
The leased buildings of the investment property in the company shall be withdrawn the depreciation
by the service life average method, and the depreciation policy is the same with that of the fixed
assets. The land use rights held and prepared to transfer after appreciation in the investment property
shall be amortized by the line method, and the specific accounting policy is same with that of the
intangible assets.
16.Fixed assets
1．The conditions of recognition
Fixed assets refers to the tangible assets that are held for the sake of producing commodities,
rendering labor service, renting or business management and their useful life is in excess of one
fiscal year. The fixed assets can be recognized when the following requirements are all met: (1) the
economic benefits relevant to the fixed assets will flow into the enterprise. (2) the cost of the fixed
assets can be measured reliably.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
The fixed assets of the company include the houses and buildings, the decoration of the fixed assets,
the machinery equipment, the transportation equipment, the electronic instrument and other devices.
2. Initial Measurement and Subsequent Measurement of the Fixed Assets
The fixed assets shall be book kept as per the acquired actual cost, and the depreciation shall be
withdrawn from the subsequent month after the usable status reserved and achieved.
3．The method for depreciation
||||||
|-|-|-|-|-|
||The method for|Expected useful life|||
|Category|||Estimated residual value|Depreciation|
||depreciation|（Year）|||
|House and Building-|Straight-line method||||
|||35 years|4%|2.74%|
|Production|||||
|House and|Straight-line method||||
|Building-Non-||40 years|4%|2.40%|
|Production|||||
|Decoration of Fixed|Straight-line method||||
|||10 years||10.00%|
|assets|||||
|Machinery and|Straight-line method||||
|||10-14 years|4%|9.60%-6.86%|
|equipment|||||
|Transportation|Straight-line method||||
|||8 years|4%|12.00%|
|equipment|||||
||Straight-line method||||
|Electronic equipment||8 years|4%|12.00%|
|Other equipment|Straight-line method|8 years|4%|12.00%|

4．Cognizance evidence and pricing method of financial leasing fixed assets
(1) Recognition Criteria of the Fixed Assets under Financing Lease
The financing lease shall be recognized if the following one or several criteria are met:① the
ownership of the leasing assets shall be transferred to the tenant when the expiration of lease term.
② the tenant has the option to purchase the leasing assets, and the made purchase price is expected
to be far less than the fair value of the leasing assets in the implementation of the option. Thus, it
can be reasonably recognized that the tenant will implement the option on the lease date.③ the
ownership of assets is not transferred, but the lease term shall be the most of the life of the lease
assets.④ the least present value of the lease payment of the tenant and the least present value of the
lease receipts on the lease date almost equal to the fair value of the leasing assets on the lease date
respectively.⑤ the leasing assets have the special nature, and only the tenant can use if there is no
major modifications.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
(2) Valuation of Fixed Assets Acquired under Finance Leases: the fixed assets acquired under
finance leases shall be book kept according to the lower between the fair value of the leasing assets
and the least lease payment on the lease date.
(3) Depreciation Method of Fixed Assets Acquired under Finance Leases: the depreciation shall be
withdrawn for the fixed assets acquired under finance leases as per the depreciation policy of own
fixed assets.
17.Construction in progress
1. The projects under construction shall be recognized when the economic benefits may flow into and the cost can be reliably measured. Meanwhile, the projects under construction shall be measured according to the actual cost occurred before the assets are built to achieve the expected usable condition.
2. The projects under construction shall be transferred into the fixed assets according to the actual project costs when the expected usable condition achieved. For the expected usable condition achieved while the final accounts for completed projects not handled yet, the projects shall be transferred into the fixed assets as per the estimated value. After the final accounts for completed projects handled, the original estimated value shall be adjusted as per the actual cost, but the original withdrawn depreciation shall not be adjusted again.
18.Borrowing costs
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of
asset satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset.
Other borrowing expenses are recognized as expenses according to the occurred amount, and
accounted into gain/loss of current term.
2. Duration of capitalization of Loan costs
(1).When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place.
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state have begun.
（2）Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted by activities other than those necessary to prepare the asset for its intended use or sale, when the interruption is for a continuous period of more than 3 months. Borrowing costs incurred during these periods recognized as an expense for the current period until the acquisition, construction or production is resumed.
（3）When the construction or production meets the intended use or sale of state of capitalization conditions, the Loan costs should stop capitalization.
3. Computation Method for Capitalization Rate and Amount of Borrowing Costs
With regard to the special borrowings for the purchase and construction of qualified assets, the
capitalized interest amount shall be recognized according to the amount of the interest cost for the
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
special borrowings actually occurred during the current period (including the amortization of discount or premium recognized as per the effective interest method) minus the interest income acquired after the borrowings deposit in bank or the investment income obtained from the temporary investment. For the general borrowings for the purchase and construction of qualified assets, the capitalized interest amount of the general borrowings shall be computed and recognized according to the weighted average of accumulative asset expense beyond the expense of the special borrowings, multiplying the capitalization rate of general borrowings.
19.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
(1) The intangible assets include the land use rights, the professional technology and the software, which are conducted the initial measurement as per the cost.
(2) The service life of intangible assets is analyzed and judged when of the company acquires the intangible assets. For the finite service life of the intangible assets, the years of service life or the quantity of service life formed and the number of similar measurement unit shall be estimated. If the term of economic benefits of the intangible assets brought for the company is not able to be foreseen, the intangible assets shall be recognized as that with the indefinite service life.
(3) Estimation Method of Service life of Intangible Assets
1) For the intangible assets with the finite service life, the company shall generally consider the following factors to estimate the service life:① the normal service life of products produced with the assets, and the acquired information of the service life of similar assets.② the estimation of the current stage conditions and the future development trends in the aspects of technology and craft.③ the demand of the products produced by the assets or the offered services in the market.④ the expectation of actions adopted by current or potential competitors.⑤ the expected maintenance expense for sustaining the capacity to economic benefits brought by the assets and the ability to the relevant expense expected.⑥ the relevant law provision or the similar limit to the control term of the assets, such as the licensed use term and the lease term.⑦ the correlation with the service life of other assets held by the company.
2) Intangible Assets with Indefinite Service Life, Judgment Criteria on Indefinite Service Life and Review Procedure of Its Service Life
The company shall be unable to foresee the term of economic benefits brought by the assets for the company, or the indefinite term of intangible assets recognized as the indefinite service life of intangible assets.
The judgment criteria of Indefinite service life:① as from the contractual rights or other legal rights, but the indefinite service life of contract provision or legal provisions.② unable to judge the term of economic benefits brought by the intangible assets for the company after the integration of information in the same industry or the relevant expert argumentation.
At the end of every year, the review should be made for the service life of the intangible assets with the indefinite service life, and the relevant department that uses the intangible assets, shall conduct the basic review by the method from up to down, in order to evaluate the judgment criteria of the indefinite service life if there is the change.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
(4) Amortization Method of Intangible Assets Value
The intangible assets with the finite service life shall be systematically and reasonably amortized according to the expected implementation mode of the economic benefits related to the intangible assets during the service life, and the line method shall be adopted to amortize for the intangible assets unable to reliably recognize the expected implementation mode. The specific service life is as follows:
|||
|-|-|
|Items|Amortization life time（Year）|
|Land use right|50 years|
|Proprietary technology|15 years|
|Software|5 years|

The intangible assets with the indefinite service life shall not be amortized, and the company shall make the review of the service life of the intangible assets during every accounting period.
(5) If there is the impairment for the intangible assets with the definite service life on the balance sheet date, the corresponding impairment provision shall be withdrawn according to the difference between the book value and the recoverable amount. The intangible assets with the indefinite service life and without the usable condition shall be conducted the impairment test every year whether the impairment exists.
2. Accounting Policy of Internal Research and Development Expenditure
The expenditure for internal research and development project in the study stage shall be recorded
into the current profits and losses when occurring. The expenditure for internal research and
development project in the development stage shall be recognized as the intangible assets when the
following requirements are simultaneously met: (1) the completion of the intangible assets is
available for use or sale, and feasible in the technology. (2) the intention to complete the intangible
assets and use or sale. (3) the method for the economic benefits produced by the intangible assets,
including the evidence that shows there exists the market for the products generated from the
intangible assets or the intangible assets have the market. The intangible assets are used internally
which shows the serviceability. (4) there are sufficient technology, financial resources and other
resources to support the completion of the development of the intangible assets, and there is ability
to use or sell the intangible assets. (5) the expenditure belong to the development stage of the
intangible assets can be reliably measured.
The specific criteria for the division of the internal research and development projects at the
research stage and the development stage of the company is as follows: (1) the investigation stage
planned to obtain the new technology and knowledge, shall be recognized as the research stage,
which has the features of planning and exploration. (2) before the commercial manufacture and use,
the research results or other knowledge should be applied for the plan or design, in order to produce
the new or improved stages with substantial materials, devices and products, which should be
recognized as the development stage, and this stage has the features of pertinence and more
possibility to create the achievement.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
20.Long-term Assets Impairment
The company shall make judgment of the long-term assets including the long-term equity
investment, the investment property measured by the cost mode, the fixed assets and the projects
under construction if there is possible impairment on the balance sheet date. If there exists the
evidence shows that the long-term assets have the impairment, the impairment test should be
conducted, and the recoverable amount should be estimated. The impairment shall be confirmed if
there exists after the comparison of the estimated recoverable amount of the assets and its book
value, and if the assets impairment provision shall be withdrawn to recognize the corresponding
impairment losses. The estimation of the recoverable amount of assets should be confirmed
according to the higher one between the net amount of the fair value minus the disposal costs and
the present value of the cash flow of assets expected in the future.
The company shall conduct the impairment test at least every year for the goodwill established by
the business combination and the intangible assets with the indefinite service life whether there
exists the impairment.
The impairment loss of long-term assets after recognizedshouldn’t be reversed in the future accounting period.
21.Long-term amortizable expenses
Deferred charges represent expenses incurred that should be borne and amortized over the current and subsequent period (together of more than one year).
The long-term unamortized expense shall be book kept as per the actual amount occurred, and shall be averagely amortize within the benefit period or the specified period. If the long-term unamortized expensecan’t make the benefits for the future accounting period, the amortized value of the unamortized project shall all be transferred into the current profits and losses.
22.Remuneration
The employee benefits of the company include short-term employee benefits, post-employment
benefits, termination benefits and other long-term employee benefits.
1. Accounting Treatment Method of Short-term Compensation
During the accounting period of service provision of staff, the company shall regard the actual short-term compensation as the liability and record into the current profits and losses or the relevant assets cost as per the beneficiary. Of which, the non-monetary welfare shall be measured as per the fair value.
2. Accounting Treatment Method of Severance Benefit Plans
The severance benefit plans can be divided into the defined contribution plan and the defined benefit plan according to the risk and obligation borne.
(1) The Defined Contribution Plan
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
The contribution deposits that paid to the individual subject for the services provided by the staffs on the balance sheet date during the accounting period, shall be recognized as the liability, and recorded into the current profits and losses or the relevant asset costs as per the beneficiary.
(2) The Defined Benefit Plan
The defined benefit plan is the severance benefit plans with the exception of the defined contribution plans.
1) Based on the expected cumulative welfare unit method, the company shall adopt unbiased and mutually consistent actuarial assumptions to make evaluation of demographic variables and financial variables, measure and define the obligations arising from the benefit plan, and determine the period of the relevant obligations. The company shall discount all the defined benefit plan obligations, including the obligation within twelve months after the end of the annual report during the expected services provision of employee. The discount rate adopted in discounting shall be recognized according to the bonds matched with the defined benefit plan obligation term and the currency at the balance sheet date or the market return of high-quality corporate bonds in the active market.
2) If there exist the assets for the defined benefit plan, the deficit or surplus arising from the present value of the defined benefit plan obligations minus the fair value of the defined benefit plan assets are recognized as the net liability or the net assets of the defined benefit plan. If there exists the surplus of the defined benefit plan, the lower one between the surplus of the define benefit plan and the upper limit of assets shall be used to measure the net assets of the defined benefit plan. The upper limit of assets refers to the present value of economic benefits obtained from the refund of the defined benefit plans or the reduction of deposit funds of future defined benefit plans.
3) At the end of period, theemployee’s payroll costs arising from the defined benefit plan are recognized as the service costs, the net interests on the net liabilities or the net assets of the defined benefit plan, and the changes caused by the net liabilities and the net assets of the defined benefit plan that re-measured. Of which, the service costs and the net interests on the net liabilities or the net assets of the defined benefit plan shall be recorded into the current profits and losses or the relevant assets costs, the changes caused by the net liabilities and the net assets of the defined benefit plan that re-measured shall be recorded into other comprehensive incomes, which should not be switched back to the profits and losses during the subsequent accounting period, but the amount recognized from other comprehensive incomes can be transferred within the scope of the rights and interests.
4) The profit or loss of one settlement shall be recognized when settling the defined benefit plan.
3. Accounting Treatment Method of Demission Welfare
The employee compensation liabilities generated by the demission welfare shall be recognized on the early date and recorded into the current profits and losses: (1) when the companycan’t withdraw the demission welfare provided due to the rundown suggestion or the termination of labor relations plans. (2) when the company recognizes the costs or the expenses related to the reorganization of demission welfare payment.
The earlier one between when the companycan’t withdraw the rundown suggestion or the termination of labor relations plans at its side and when the costs relevant to the recombination of dismission welfare payment, shall be recognized as the liabilities arising from the compensation due to the termination of labor relations with staff and shall be recorded into the current profits and losses.
Then company shall reasonably predict and recognize the payroll payable arising from the dismission
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
welfare. The dismission welfare, which is expected to finish the payment within twelve months after the end of the annual report recognized, shall apply to the relevant provisions of short-term compensation. The dismission welfare, which is expected to be unfinished for the payment within twelve months after the end of the annual report recognized, shall apply to the relevant provisions of short-term compensation, shall apply to the provisions related to other long-term employee benefits.
4. Accounting Treatment Method of Other Long-term Employee Benefits
If other long-term employee benefits of employees provided by the company meet the conditions of the defined contribution plan, the accounting treatment shall be made in accordance with the defined contribution plan. Except for these, other long-term benefits shall be made the accounting treatment according to the defined benefit plan, but the changes arising from the re-measurement of net liabilities or net assets of other long-term employee benefits shall be recorded into the current profits and losses or the relevant assets costs.
23. Estimated Liabilities
1. Recognition Criteria of Estimated Liabilities
The liabilities shall be recognized when external guarantee, pending litigation or arbitration, product
quality assurance, staff reduction plan, loss contract, recombination obligation, disposal obligation of the fixed assets and other pertinent businesses all meet the following requirements:
(1) The obligation is the current obligation borne by the company.
(2) The implementation of the obligation may cause the economic benefits out of the enterprise.
(3) The amount of the obligation can be measured reliably.
2. Measurement Method of Estimated Liabilities
The estimated liabilities shall be made the initial measurement according to the best estimate of the expenditure required to settle the present obligation. There is the continuous scope for the required expenditure, and the best estimate with the same possibilities resulted from various outcomes within the scope shall be recognized as per the intermediate value. The best estimate should be recognize according to the following methods:
(1) The best estimate shall be recognized as per the most possible amount if there are matters involved in the single item.
(2) The best estimate shall be calculated and recognized as per the possible amount if there are matters involved in the multiple item.
If the company pays all the expenses for paying off the estimated liabilities, or partial estimates are compensated by the third party or other parties, the compensation amount should be separately recognized as the assets when the receipt of the compensation amount is basically determined. Meanwhile, the determined compensation amount shall not exceed the book value of the estimated liabilities recognized.
The company shall make review of the book value of estimated liabilities at the balance sheet date. If there is conclusive evidence that the book value cannot really reflect the current best estimate, the adjustment shall be made for the book value in accordance with the current best estimate.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
24. Revenue
1. Recognition Principle of Revenue
(1) The Goods for Sale
The revenue of the goods for sale shall be recognized when the following requirements are met simultaneously: the transfer of main risks and rewards on ownership of the goods to the buyers, the continual management rights related to ownership no longer retained by the company and the effective control of the sold goods no longer implemented, the reliable measurement of the revenue amount, the possible inflow of the relevant economic benefits, and the reliable measurement of the relevant costs incurred or to be incurred.
(2) The Service Provision
If the provided services transaction results can be reliably estimated at the balance sheet date (the reliable measurement of the revenue amount, the possible inflow of the relevant economic benefits, the reliable recognition of the completion schedule of transaction, and the reliable measurement of the relevant costs incurred or to be incurred in the transaction), the company shall recognize the relevant service incomes according to the completion percentage method and recognized the completion schedule of the provided service transaction according to the proportion of the costs occurred accounting for the total estimated costs. If the provided services transaction results cannot be reliably estimated at the balance sheet date and the occurred service costs can be expected to have compensation, the company shall recognize to provide the service revenue according to the occurred service cost amount and transfer the service costs as per the same amount. If the occurred service costs cannot be expected to have compensation, the occurred service costs shall be recorded into the current profits and losses and not be recognized as the service revenue.
(3) The Abalienation of the Right to Use Assets
The revenue of abalienation of the right to use assets shall be recognized when the abalienation of the right to use assets meets the requirements of the possible inflow of the relevant economic benefits and the reliable measurement of revenue amount. The interest income shall be calculated and determined according to time and actual interest rate of the monetary capital of the company used by others, and the royalty revenue shall be measured and determined in accordance with the charging time and method appointed in the relevant contract or agree.
2. The Specific Recognition Method of Revenue
The company mainly sells the polaroid, textiles and other products. The revenue of the sale of products in domestic market shall be recognized after the following requirements are met: The company has agreed to deliver the goods to the purchaser under the contract and the revenue amount of product sales has been determined, the payment for goods has been withdrawn or the payment vouchers has been obtained and related economic benefits are likely to inflow, and the costs related to the products can be measured reliably. The revenue of the sale of products in foreign market shall be recognized after the following requirements are met: The company has made customs clearance and departure from port under the contract, the bill of landing has obtained and the revenue of the sale of products has been recognized, the payment for goods has been withdrawn or the payment vouchers has been obtained and related economic benefits are likely to inflow, and the costs related to the products can be measured reliably.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
25.Government subsidy
1. Judgment Basis and Accounting Treatment Method of Government Grants related to Assets
The government grants of long-term assets that obtained, used for construction or formed by other ways, shall be recognized as the government subsidy related to the assets. The government grants related to assets are recognized as the deferred income, equally distributed within the service life of the relevant assets, and recorded into the current profits or losses.
2. Judgment Basis and Accounting Treatment Method of Government subsidy related to Income
The government subsidy other than that related to income acquired by the company shall be recognized as the government subsidy related to income.
If the grant objects are not explicitly stipulated in the government files, the government subsidy shall be divided into that related to assets and that related to income, and the judgment basis is that:① if the specific purpose of subsidy is stipulated in the government document, the review and necessary change shall be made at the balance sheet date for the proportion of division according to the relative proportion of assets expense amount and expense amount recorded in the budget of the special item.② only general expression is made in the government documents, and the government subsidy related to income should be made for the non-particular items.
The government subsidy related to income that used for the compensation of the related expenses or losses in subsequent period, shall be recognized as the deferred income and recorded into the current profits and losses during the period of the confirmation of relevant expenses. The relevant expenses or losses occurred for the purpose of compensation shall be directly recorded into the current profits and losses.
3. Recognition Time of Government subsidy
If there is evidence shows that the company can meet the financial support policies and regulations at the end of period, and the support funds can be expected to receive, the government grants shall be recognized as per the receivable amount. In addition, the government subsidy should be recognized when actually received.
4. Accounting Method of Government subsidy
The government subsidy shall be measured as per the received or receivable amount if the grants are as the monetary assets. The government subsidy shall be measured as per the fair value if the grants are as the non-monetary assets, and shall be measured as per the nominal amount if the fair value cannot be reliably obtained.
26.The Deferred Tax Assets / The deferred Tax Liabilities
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax basis, and the difference of the book value and the tax basis that no confirmation of assets and liabilities but able to confirm the tax basis as per the provisions of tax law. The temporary difference can be classified into the taxable temporary difference and the deductible temporary difference.
2. Recognition Basis of Deferred Tax Assets
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
For the deductible temporary difference, the deductible loss and the tax payment offset, the company shall recognize the deferred tax assets arising from the future taxable income that obtained to deduce the deductible temporary difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or liabilities in the transaction shall not be recognized: (1) the transaction is not the business combination. (2) the transactiondoesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary difference related to the investment of subsidiaries, cooperative enterprises and joint ventures if the following requirements are simultaneously met: (1) the temporary difference is possible to be reversed in the foreseeable future. (2) the taxable income used to offset the deductible temporary difference is possible to be obtained in the future.
3. Recognition Basis of Deferred Tax Liabilities
All the taxable temporary differences shall be recognized as the deferred tax liabilities.
But the company shall not recognize the taxable temporary differences arising from the following transactions as the deferred tax liabilities: (1) the initial recognition of goodwill. (2) the initial recognition of assets or liabilities arising from the transactions with the following features: this transaction is not the business combination, and the transactiondoesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax liabilities for the taxable temporary difference related to the investment of subsidiaries, cooperative enterprises and joint ventures. Except that the following requirements are simultaneously met: (1) the investment enterprise can control the reversal time of the temporary difference. (2) the temporary difference is possible to not be reversed in the foreseeable future.
4. Impairment of Deferred Tax Assets
The company shall review the book value of the deferred tax assets at the balance sheet date. If it is not possible to obtain sufficient taxable income for the reduction of the benefit of the deferred tax assets in the future, the book value of the deferred tax assets shall be deduced. Except that the deferred tax assets and the reduction amount are recorded into theowner’s equity when the original recognition, others shall be recorded into the current income tax expense. The book value of the deferred tax assets reduced can be recovered when sufficient taxable income is possibly obtained.
5. Income Tax Expense
The income tax expense should include the current income tax and the deferred income tax.
Other comprehensive income or the current income tax and the deferred income tax related to the transactions and items directly recorded into thestockholders’ equity, shall be recorded into other comprehensive incomes or thestockholders’ equity, and the book value of goodwill shall be adjusted by the deferred income tax arising from the business combination, but the rest of the current income tax and the deferred income tax expense or income shall be recorded into the current profits and losses.
27.Lease
1. Accounting Treatment Method of Operating Lease
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
When the company is as the tenant, the rental within the lease term shall be recorded into the relevant assets cost or recognized as the current profits and losses as per the line method, and the initial direct expense occurred shall be directly recorded into the current profit and loss. The contingent rental shall be recorded into the current profit and loss once the actual occurrence.
When the company is as the leaser, the rental within the lease term shall be recognized as the current profits and losses as per the line method, and the initial direct expense occurred shall be directly recorded into the current profit and loss, except that the large amounts are capitalized and recorded into the profit and loss by stages. The contingent rental shall be recorded into the current profit and loss once the actual occurrence.
2. Accounting Treatment Method of Finance Lease
When the company is as the tenant, the company shall recognize the less one between the fair value of leasing assets and the present value of minimum lease payment at the lease commencement date as the book value of rented assets, recognize the minimum lease payment as the book value of the long-term payables, and the undeterminedfiancé expense of the difference and the initial direct costs occurred shall be recorded into the leasing asset value. During each lease period, the current financing charges shall be measured and recognized by the effective interest method.
When the company is as the leaser, the company shall recognize the sum of minimum lease receivables and initial direct expense at the lease commencement date as the book value of finance lease receivables, and record the unguaranteed residual value. Meanwhile, the company shall recognize the difference between the sums of minimum lease receivables, minimum lease receivables and unguaranteed minus the sum of the present value as the unrealized financing income. During each lease period, the current financing charges shall be measured and recognized by the effective interest method.
28.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable√Not applicable
N/A
（2）Change of main accounting estimations
□Applicable√Not applicable
N/A
IV.Taxes of the Company
1. Main taxes categories and tax rate
||||
|-|-|-|
|Taxes|Tax references|Applicable tax rates|
||Selling goods or providing taxable||
|VAT||17%|
||labor services||
|Business tax.|Taxable income|5%|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|City construction tax|The taxable turnover|7%|
|Business income tax|Taxable income|25%、15%|
||Taxable income||
|Business income tax||25%、15%|

2. Tax preference and approval file
(1)Shenzhen Shengbo Optoelectronic Technology Co., Ltd., the subsidiary company of our company, has been qualified as national high-tech enterprise since 2013 ,High-tech and enterprise certificate
No.: GF201344200044 ,The certificate is valid for three years, The enterprise income tax rate of this
year is15%.
(2).In accordance with relevant provisions of the Notice of Ministry of Finance, General Administra
tion of Customs and State Taxation Administration Regarding Tax Preference Policies for Further Su
pporting the Development of New-type Display Device Industry (Cai Guan Shui (2012) No. 16), an
d the Notice of Printing and Issuing the Scope of Imported Materials of Enterprises Manufacturing
Colorful Light Filtering Coating and Polarizer Sheets and the List of the First Group of Enterprises
Enjoying Preferential Policies (Cai Guan Shui (2012) No. 53), Shenzhen Shengbo Optoelectronic Te
chnology Co., Ltd. manufactured key materials and parts for the upstream industry of new-type disp
lay devices including colorful light filter coating and polarizer sheet that comply with the planning f
or independent 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 p
roduction that can not be produced domestically from June 1, 2012 and December 31, 2015. For the
concrete regulations on tax exemption, the Provisional Regulations on Taxation Policies for Importe
d Materials of Enterprises Manufacturing New-type Display Device Panels (Cai Guan Shui (2012)
No. 16).
V. Notes of consolidated financial statement
Unless otherwise stated, the meaning of "B/f", "C/f", "Current year", "Prior year" in the following
notes (incl. Notes to elements of the separate financial statements) is "1st January 2015", "31st
December 2015", "the year ended 31st December 2015", and "the year ended 31st December 2014"
respectively.
1.Monetary Capital
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Cash at hand|8,872.71|8,588.42|
|Bank deposit|750,353,139.33|1,101,274,000.66|
|Other monetary funds|1,952,859.49|488,972.20|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Total|752,314,871.53|1,101,771,561.28|
|Including : The total amount of deposit|31,258,353.11|3,552,067.53|
|abroad|||

Notes :As of December 31,2016，The fixed-term deposit balance of money fund is RMB
3,655,995.93 , this part will not be treated as closing cash or closing cash equivalent in preparing cash
flow statement. Monetary unit is RMB yuan
2.Bill receivables
1. Classification Bill receivable
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Bank acceptance|18,841,745.16|43,412,635.19|
|Trade acceptance|||
|Total|18,841,745.16|43,412,635.19|

 2. As of December 31,2015，The company has no Bill receivable pledged.
3．Notes endorsement or discount and undue on balance sheet date
In RMB
||||
|-|-|-|
|Items|Amount derecognizing at period –end|Amount derecognizing at period-end|
|Bank acceptance|32,454,052.03||
|Trade acceptance|||
|Total|32,454,052.03||

4．Bill transferred to account receivable for the issuer is not able to execute the liability at the end of
period.
3. Account receivable
1.Classification account receivables.
Amount in year-end
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Proportion(%)|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Amount in year-end
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Proportion(%)|
|6,373,036.66|3.16|4,035,782.60|63.33|
|189,029,540.68|93.74|9,776,480.20|5.17|
|6,259,765.85|3.10|5,083,708.34|81.21|
|201,662,343.19|100.00|18,895,971.14||

 Amount in year-begin
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Proportion(%)|
|4,698,879.38|2.73|3,198,621.70|68.07|
|162,559,876.54|94.56|8,393,593.26|5.16|
|4,651,945.06|2.71|4,194,915.67|90.18|
|171,910,700.98|100.00|15,787,130.63||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
(1)Accounts receivable of individual significance and subject to individual impairment assessment.
||||||
|-|-|-|-|-|
||Amount in year-end||||
|Debtor|||||
||Account receivable|Bad debt provision|Proportion(%)|Reason for allowance|
|||||It has been included in|
|Dongguan Fair LCD Co.,||||the list of national courts|
||1,698,528.55|1,698,528.55|100.00||
|Ltd.||||dishonest debtor, unlikely|
|||||to recover.|
|||||Beyond the credit period|
|Guangdong Ruili Baolai|||||
||1,418,965.36|709,482.68|50.00|f or a long time, uncertain|
|Technology Co., Ltd.|||||
|||||recovered.|
|||||Beyond the credit period|
|Dongguan Yaxing|||||
||3,255,542.75|1,627,771.37|50.00|f or a long time, uncertain|
|Semiconductor Co., Ltd.|||||
|||||recovered.|
|Total|6,373,036.66|4,035,782.60||--|

（2）Account receivable on which bad debt provisions are provided on age basis in the group
|||||
|-|-|-|-|
||Balance in year-end|||
|Aging||||
||Account receivable|Bad debt provision|Proportion(%)|
|Within 1 year|188,008,826.83|9,400,441.34|5.00|
|1-2 years|269,320.69|26,932.07|10.00|
|2-3 years|132,948.96|39,884.69|30.00|
|Over 3 years|618,444.20|309,222.10|50.00|
|Total|189,029,540.68|9,776,480.20||

2．Recognisation , recovery or reversal of allowance for baddebt：
（1）The account of allowance for bad debts recognised during the period is RMB3,899,615.51, The
amount collected or switches back amounting to 790,775.00.
（2）Bad debt provision accrual collected or switch back
|||
|-|-|
|Amountreceivable|Allowance forbad debts|
|1,581,550.00|790,775.00|
|1,581,550.00|790,775.00|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
3．The company has no account receivables written off this period.
4.The ending balance of receivable owed by the imputation of the top five parties
|||||||
|-|-|-|-|-|-|
|Name|Nature|Balance inyear-end|Aging|Proportion(%)|Bad debt provision|
|Client 1|Goods|67,995,405.77|Within 1 year|33.72|3,399,770.29|
|Client 2|Goods|31,812,267.30|Within 1 year|15.77|1,590,613.37|
|Client 3|Goods|15,437,524.43|Within 1 year|7.65|771,876.22|
|Client 4|Goods|8,562,394.21|Within 1 year|4.25|428,119.71|
|Client 5|Goods|7,315,138.55|Within 1 year|3.63|365,756.93|
|Total||131,122,730.26||65.02|6,556,136.52|

 4.Prepayments
1．Disclosure by age
（1）Disclosure by age
||||||
|-|-|-|-|-|
||Balance in year-end||Balance in year-begin||
|Aging|||||
||Amount|Proportion（%）|Amount|Proportion（%）|
|Within 1 year(including|||||
||5,027,361.20|64.01|24,681,972.11|91.16|
|1 year)|||||
|1-2 years|1,033,416.99|13.16|2,298,742.28|8.49|
|2-3 years|1,754,880.00|22.34|94,380.42|0.35|
|Over 3 years|38,160.00|0.49|||
|Total|7,853,818.19|100.00|27,075,094.81|100.00|

 (2)Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled
in time
|||||
|-|-|-|-|
|Claims unit|Debt unit|Balance in year-end|Aging|
|Shenzhen Textile（Holdings）Co., Ltd.|Shenzhen FutianDistrict Housing andConstruction Bureau|1,754,880.00|2-3 years|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
2.The ending balance of Prepayments owed by the imputation of the top five parties
||||
|-|-|-|
|Name|Balance in year-end|Proportion|
|First|1,754,880.00|22.35|
|Second|981,952.10|12.50|
|Third|438,461.55|5.58|
|Fourth|437,459.86|5.57|
|Fifth|219,687.79|2.80|
|Total|3,832,441.30|48.80|

 5.Interest receivable
1.Category of interest receivable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Fixed deposit interest|13,357,311.32|5,520,035.21|
|Structure deposit interest||706,164.38|
|Total|13,357,311.32|6,226,199.59|

 6.Other receivable
1．Category of Other receivable
In RMB
Amount in year-end
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Withdrawalproportion(%)|
|11,981,464.60|19.67|11,981,464.60|100.00|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Amount in year-end
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Withdrawalproportion(%)|
|48,425,735.21|79.49|3,292,063.11|6.80|
|511,820.77|0.84|511,820.77|100.00|
|60,919,020.58|100.00|15,785,348.48||

 Amount in year-begin
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Withdrawalproportion (%)|
|11,981,464.60|20.88|11,981,464.60|100.00|
|44,880,159.19|78.23|3,036,781.80|6.77|
|511,820.77|0.89|511,820.77|100.00|
|57,373,444.56|100.00|15,530,067.17||

Other receivable accounts with large amount and were provided had debt provisions individually at
end of period.
|||
|-|-|
||Amount in year-end|
|Debtor||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
||||Withdrawal proportion||
||Other account receivable|Bad debt provision||Reason for allowance|
||||(%)||
|Jiangxi Xuanli String||||No executable property,|
||11,389,044.60|11,389,044.60|100.00||
|Co., Ltd.||||unlikely to recover.|
|Shenzhen Tianlong||||Has been|
|Induatry& Trade Co.,|592,420.00|592,420.00|100.00|conceled,unlikely to|
|Ltd.||||recover|
|Total|11,981,464.60|11,981,464.60||--|

(2)Other receivable accounts in Group on which bad debt provisions were provided on age analyze
basis：
|||||
|-|-|-|-|
||Amount in year-end|||
|Aging||||
||Other receivable|Bad debt provision|Withdrawal proportion|
|Within 1 year|44,339,566.81|2,216,978.35|5.00|
|1-2 years|2,237,253.61|223,725.36|10.00|
|2-3 years|365,489.98|109,646.99|30.00|
|Over 3 years|1,483,424.81|741,712.41|50.00|
|Total|48,425,735.21|3,292,063.11||

2.The current amount of provision for bad debts is RMB255,281.31, no withdraw or return for bad
debts.
3．The company has no other receivables written off this period.
4.Other accounts receivable classified by the nature of accounts
||
|-|
|Year-end balance|
|2,276,015.00|
|37,916,465.75|
|16,318,999.87|
|2,024,236.32|
|968,214.01|
|1,415,089.63|
|60,919,020.58|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
5.Top 5 of the closing balance of the other accounts receivable colleted according to the arrears
party
|||||
|-|-|-|-|
|Nature|Closing balance|Aging|Proportion ofthe total yearend balance ofthe accountsreceivable(%)|
|Export rebate|37,916,465.75|Within 1 year|62.25|
|Unit account|11,389,044.60|Over 3 years|18.69|
|Unit account|1,800,000.00|Within 1 year|2.95|
||1,800,000.00|1-2 years|2.95|
|Equity transfer|2,276,015.00|Within 1 year|3.74|
|Deposit|980,461.06|Over 3 years|1.61|
||56,161,986.41||92.19|

 7.Inventories
（1）Inventories types
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items|Book balance|Provision for bad|Book value|Book balance|Provision for bad|Book value|
|||debts|||debts||
|Raw materials|150,409,810.60|14,406,278.95|136,003,531.65|96,253,606.72|18,042,269.08|78,211,337.64|
|Processing|||||||
||6,871,382.66|493,094.77|6,378,287.89|6,209,041.89||6,209,041.89|
|products|||||||
|Finished product|128,415,576.27|30,161,550.92|98,254,025.35|116,534,286.34|25,965,053.01|90,569,233.33|
|Semi-finished|||||||
||90,791,967.01|22,652,767.02|68,139,199.99|76,759,022.66|21,506,818.01|55,252,204.65|
|product|||||||
|Turnover|||||||
|||||133,102.72||133,102.72|
|materials|||||||
|Designated|||||||
|processing||||284,202.01||284,202.01|
|material|||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Total|376,488,736.54|67,713,691.66|308,775,044.88|296,173,262.34|65,514,140.10|230,659,122.24|

（2）Inventory Impairment provision
||||||||
|-|-|-|-|-|-|-|
|||Increased in current period||Decreased in current period|||
||Year-beginning||||||
|Items||||||Year-end balance|
||balance|Provision|Other|Transferred back|Other||
|Raw materials|18,042,269.08|5,678,191.34||9,314,181.47||14,406,278.95|
|Finished product|25,965,053.01|25,463,253.58||21,266,755.67||30,161,550.92|
|Semi-finished|||||||
||21,506,818.01|17,179,570.89||16,033,621.88||22,652,767.02|
|product|||||||
|Processing||||||493,094.77|
|||493,094.77|||||
|products|||||||
|Total|65,514,140.10|48,814,110.58||4 6,614,559.02||6 7,713,691.66|

 8.Other current assets
||||
|-|-|-|
||Year-end balance|Year-beginning balance|
|Items|||
|Structural Deposit|460,000,000.00||
|After the deduction of input VAT|53,553,675.47|61,748,415.41|
|Total|513,553,675.47|61,748,415.41|

 9.Available-for-sale financial assets
(1)Available-for-sale financial assets
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items|||||||
|||Bad debt|||Bad debt||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Available-for-sale equity||||124,282,285.62|||
||79,931,512.57|36,689,988.51|43,241,524.06||36,689,988.51|87,592,297.11|
|instruments|||||||
|Measured by fair value|10,054,476.60||10,054,476.60|52,605,249.65||52,605,249.65|
|Measured by cost|69,877,035.97|36,689,988.51|33,187,047.46|71,677,035.97|36,689,988.51|34,987,047.46|
||||43,241,524.06|124,282,285.62||87,592,297.11|
|Total|79,931,512.57|36,689,988.51|||36,689,988.51||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
(2)Available-for-sale financial assets measured by fair value at the period-end
||
|-|
|Cost|
|8,940,598.31|
|8,940,598.31|
|8,940,598.31|

 (2)Available-for-sale financial assets measured by cost at the period-end
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Book balance||||Impairment provision||||Shareholdi|Cash|
||||||||||ng|bonus of|
|Investee|Period-beg||||Period-beg||||proportion|the|
|||Increase|Decrease|Period-end||Increased|Decreased|Period-end|||
||in||||in||||among the|reporting|
||||||||||investees|period|
|Shenzhen|||||||||||
|Jintian|||||||||||
|Industry|||||||||||
|（Group）|14,831,68|||14,831,68|14,831,68|||14,831,68|||
|Co., Ltd.|1.50|||1.50|1.50|||1.50|3.68||
|Shenzhen|||||||||||
|Jiafeng|||||||||||
|Textile|16,800,00|||16,800,00|16,800,00|||16,800,00|||
|Co., ltd.|0.00|||0.00|0.00|||0.00|10.80||
|Shenzhen|||||||||||
|Guanhua|||||||||||
|Prnting &|||||||||||
|dyeing|5,491,288|||5,491,288|5,058,307|||5,058,307|||
|Co., Ltd.|.71|||.71|.01|||.01|45.00||
|Shenzhen|||||||||||
|Union|||||||||||
|Developm|||||||||||
|ent Group|2,600,000|||2,600,000||||||156,000.0|
|Co., Ltd|.00|||.00|||||2.87|0|
|Shenzhen|160,000.0|||160,000.0|||||||
|Xiangjiang|0|||0|||||20.00|84,587.22|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|Trade Co.,||||||||
|Ltd.||||||||
|Shenzhen||||||||
|Xinfang||||||||
|Knitting|524,000.0||524,000.0|||||
|Co., Ltd.|0||0|||20.00|54,000.00|
|Shenzhen||||||||
|Dailisi||||||||
|Knitting|2,559,856||2,559,856||||788,870.0|
|Co., Ltd.|.26||.26|||30.00|0|
|Anhui||||||||
|Huapeng||||||||
|Textile|25,410,20||25,410,20||||1,800,000|
|Co., Ltd.|9.50||9.50|||50.00|.00|
|Shenzhen||||||||
|South||||||||
||1,500,000||1,500,000||||658,819.4|
|Textile||||||||
||.00||.00|||9.84|0|
|Co., Ltd.||||||||
|Shenzhen||||||||
|Tongyi||||||||
||1,800,000|1,800,000|||||685,344.9|
|Silk Co.,||||||||
||.00|.00|||||5|
|Ltd.||||||||
||71,677,03|1,800,000|69,877,03|36,689,98|36,689,98||4,227,621|
|Total||||||||
||5.97|.00|5.97|8.51|8.51||.57|

 In the reporting period,18% Equity of Tongyi with assessed value RMB 45.5203 million was
transferred to Shenzhen Fenghuirun Investment Co., Ltd; Shenzhen Dailisi Knitting Co., Ltd. and Anhui
Huapeng Textile Co., Ltd. provided foreign contract in the current period.
(4)Changes of the impairment of the available-for-sale financial assets during the reporting period
|||
|-|-|
|Available for sale equityinstruments|Available for saledebts instruments|
|37,301,142.97||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
|Available for sale equityinstruments|Available for saledebts instruments|
|611,154.46||
|36,689,988.51||

Fawer Shares（000030）the company held impairment loss at the last period of RMB
2,947,341.67, the current value raised, the reversal of impairment losses of RMB 611,154.46
through equity.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
10.Long-term equity investment
(1)Long-term equity investment
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase/decrease||||||||||
||||||||||||Closing|
||||||Adjustme|||||||
||||||||Cash|Withdraw|||balance|
|||||Gains/los|nt of|||||||
||Opening|Add|Investme|||Changes|bonus or|al of||Closing|of|
|Investees||||||||||||
|||||s of|other|||||||
||balance|investmen|nt|||of other|profits|impairme|Other|balance|impairme|
|||||Investme|comprehe|||||||
|||t|decreased|||equity|announce|nt|||nt|
|||||nt|nsive|||||||
||||||||d to issue|provision|||provision|
||||||income|||||||
|I. Joint venture||||||||||||
|Shenzhen||||||||||||
|Haohao||||||||||||
|Property||||||||||||
|Leasing|3,762,40|||635,434.1||||||4,397,840||
|Co., Ltd.|6.73|||5||||||.88||
|Shenzhen||||||||||||
|Xieli||||||||||||
|Automobil|3,675,12|||386,836.5||||||4,061,958|266,654.9|
|e Co., Ltd.|2.44|||2||||||.96|9|
||7,437,52|||1,022,270||||||8,459,799|266,654.9|
|Subtotal||||||||||||
||9.17|||.67||||||.84|9|
|2. Affiliated Company||||||||||||
|Shenzhen||||||||||||
|Changlianf||||||||||||
|a Printing||||||||||||
|& dyeing|1,814,15|||||||||1,871,377||
|Company|8.78|||57,218.31||||||.09||
|Jordan||||||||||||
|Garment|3,262,74|||-76,209.2|197,479.0|||||3,384,014||
|Factory|4.69|||3|3|||||.49||
|Hongkong||||||||||||
|Yehui|8,547,27|||1,427,762|||545,386.5|||9,430,732||
|Internation|9.68|||.45|1,077.00||0|||.63||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|al Co.,|||||||
|Ltd.|||||||
||13,624,1|1,408,771|198,556.0|545,386.5|14,686,12||
|Subtotal|||||||
||83.15|.53|3|0|4.21||
||21,061,7|2,431,042|198,556.0|545,386.5|23,145,92|266,654.9|
|Total|||||||
||12.32|.20|3|0|4.05|9|

 Shenzhen Xieli Automobile Co., Ltd. Business license has been revoked the business sector.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
11.Investment real estate
（1）Measured by the cost of investment in real estate
||||||
|-|-|-|-|-|
|Items|House, Building|Land use right|Construction in process|Total|
|I. Original price|||||
|1. Balance at|||||
||254,042,931.46|||254,042,931.46|
|period-beginning|||||
|2.Increase in the current|||||
||60,000.00|||60,000.00|
|period|||||
|3.Decrease in the current|||||
||1,817,038.92|||1,817,038.92|
|period|||||
|4 Year-end balance|252,285,892.54|||252,285,892.54|
|II.Total accumulated|||||
|depreciation accumulated|||||
|amortization|||||
|1. Year-begin balance|113,137,656.01|||113,137,656.01|
|2.Increase in the current|||||
||6,575,312.40|||6,575,312.40|
|period|||||
|(1).Provision or|||||
||6,575,312.40|||6,575,312.40|
|amortization|||||
|3.Decrease in the current|||||
||1,817,038.92|||1,817,038.92|
|period|||||
|4 Year-end balance|117,895,929.49|||117,895,929.49|
|4. Balance at period-end|||||
|III. Impairment provision|||||
|1. Balance at|||||
|period-beginning|||||
|2.Increased amount of|||||
|the period|||||
|3.Decrease in the|||||
|current period|||||
|4. Balance at period-end|||||
|IV.Book value|134,389,963.05|||134,389,963.05|
|1.Book value at period|140,905,275.45|||140,905,275.45|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|-end|||
|2.Book value at||140,905,275.45|
||140,905,275.45||
|period-beginning|||

12. Fixed assets
（1）Fixed assets
|||||
|-|-|-|-|
|House andbuildings|Machineryequipment|Transportationequipment|ElectronicEquipment andother|
|477,461,993.94|633,688,396.11|3,691,157.72|18,266,876.86|
|18,163,742.62|19,105,781.35||1,630,732.31|
|903,094.00|3,571,969.74||1,630,732.31|
|17,260,648.62|15,533,811.61|||
|5,573,724.08|622,103.56||434,356.71|
|5,573,724.08|622,103.56||434,356.71|
|490,052,012.48|652,172,073.90|3,691,157.72|19,463,252.46|
|76,531,202.95|217,981,340.78|2,363,208.73|11,126,071.22|
|13,946,557.06|58,087,101.46|365,764.49|1,324,654.47|
|13,946,557.06|58,087,101.46|365,764.49|1,324,654.47|
|5,573,724.08|444,802.17||348,365.51|
|5,573,724.08|444,802.17||348,365.51|
|84,904,035.93|275,623,640.07|2,728,973.22|12,102,360.18|
|||235,233.62||
|||235,233.62||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|House andbuildings|Machineryequipment|Transportationequipment|ElectronicEquipment andother|
|405,147,976.55|376,548,433.83|962,184.50|7,360,892.28|
|400,930,790.99|415,707,055.33|1,092,715.37|7,140,805.64|

(2)Fixed assets with un-completed property certificates
||||
|-|-|-|
|Items|Book Value|Reasons for un-completed certificate|
|TFT-LCD polarizing film project phase 1 fixed|||
|||Need to improve the relevant accreditation|
||288,049,723.38||
|||information|
|assets of houses and buildings|||

Notes
Current depreciation is RMB73,724,077.48 .The issue of fixed assets transferred from
construction in progress original price is RMB32,794,460.23.
2.Fixed assets with un-completed property certificates
||
|-|
|Book Value|
|296,998,079.44|

13.Project under construction
（1）Project under construction
||||||||
|-|-|-|-|-|-|-|
||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|||||||
||36,212,078.79||36,212,078.79|32,436,160.45||32,436,160.45|
|project|||||||
|Guanhua|||||||
||39,004,527.58||39,004,527.58|31,482,502.19||31,482,502.19|
|Building project|||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|Research and|||||
|development|||||
||||14,745,915.59|14,745,915.59|
|center expansion|||||
|project|||||
|Other|586,980.33|586,980.33|1,157,571.11|1,157,571.11|
|Total|75,803,586.70|75,803,586.70|79,822,149.34|79,822,149.34|

（2）Changes of significant construction in progress
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||Including：||Source of fund|
|||||||||||Including：|Current|||
||||||||||Capitalizat|||||
|||||||||||The year|amount of|Capitalizat||
|||Amount at||Transferre|||||ion of|||||
||||Increase at||Other|Balance in|Proportion|Progress of||amount of|capitalizati|ion of||
|Name|Budget|year||d to fixed|||||interest|||||
||||this period||decrease|year-end|(%)|work||capitalizati|on of|interest||
|||beginning||assets|||||accumulat|||||
|||||||||||on of|interest|ratio（%)||
||||||||||ed balance|||||
|||||||||||interest||||
|TFT-LCD|||||||||||||Collect and Self-|
|polarizing|1,470.93m|32,436,160|3,775,918.|||36,212,0||||||||
||||||||2%|2%||||||
|film II|illion|.45|34|||78.79||||||||
|project||||||||||||||
|||32,436,160|3,775,918.|||36,212,0||||||||
|Total||||||||||||||
|||.45|34|||78.79||||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report 14.Intangible assets
（1）List of intangible assets
||||||
|-|-|-|-|-|
|Items|Land use right|Proprietary technology|Software|Total|
|I. Original price|||||
|1.Opening|||||
||48,765,130.50|11,825,200.00|1,876,780.00|62,467,110.50|
|balance|||||
|2.Increased|||||
||||61,500.00|61,500.00|
|amount of the|||||
|period|||||
|(1) Purchase|||61,500.00|61,500.00|
|3.Decreased at|||||
|thisperiod|||||
|4. Balance at|||||
||48,765,130.50|11,825,200.00|1,938,280.00|62,528,610.50|
|period-end|||||
|II.Accumulated|||||
|amortization|||||
|1. Balance at|||||
||8,417,706.45|11,825,200.00|452,801.16|20,695,707.61|
|period-beginning|||||
|2. Increase in the|||||
||965,603.28||240,363.27|1,205,966.55|
|current period|||||
|(1) Withdrawal|965,603.28||240,363.27|1,205,966.55|
|3.Decreased|||||
|amount of the|||||
|period|||||
|4. Balance at|||||
||9,383,309.73|11,825,200.00|693,164.43|21,901,674.16|
|period-end|||||
|III. Impairment|||||
|provision|||||
|1. Balance at|||||
|period-beginning|||||
|2. Increase in the|||||
|current period|||||
|3.Decreased|||||
|amount of the|||||
|period|||||
|4. Balance at|||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|period-end||||
|IV. Book value||||
|1.Book value at||||
||39,381,820.77|1,245,115.57|40,626,936.34|
|period -end||||
|2.Book value at||||
||40,347,424.05|1,423,978.84|41,771,402.89|
|period-beginning||||

15.Goodwill
1．General information
||||
|-|-|-|
|Balance in year-begin|Increased at thisperiod|.Decreased atthis period|
|2,167,341.21|||
|82,246.61|||
|9,614,758.55|||
|11,864,346.37|||

（2）Impairment allowance
||||
|-|-|-|
|Balance in year-begin|Increased at thisperiod|.Decreased atthis period|
|2,167,341.21|||
|82,246.61|||
||9,614,758.55||
|2,249,587.82|9,614,758.55||

Notes：
The company has purchased52.05% stock equity of Shenzhen Shengbo Optoelectronic Technology Co., Ltd. In
June 2009, and has paid the consideration with the difference RMB9,614,758.55 after the shares of the fair value
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report of the identifiable net assets deducted, which shall be recorded into the goodwill. the company has made the impairment test for the assets group combination including the goodwill, After testing, the goodwill impairment provision is RMB 9,614,758.55.
16. Long term amortize expenses
|||||||
|-|-|-|-|-|-|
||||Amortized expenses|||
|Items||Increase in this||Other loss|Balance in year-end|
||Balance in year-begin|||||
|||period||||
|Renovation fee|245,050.54|350,688.00|246,709.20||349,029.34|
|Other|315,826.52|14,616.00|45,930.36||284,512.16|
|Total|560,877.06|365,304.00|292,639.56||633,541.50|

 17. Deferred income tax assets/deferred income tax liabilities
（1）Details of the un-recognized deferred income tax assets
In RMB
||||||
|-|-|-|-|-|
||Balance in year-end||Balance in year-begin||
|Items|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|assets|difference|assets|
|Assets depreciation|||||
||7,334,802.71|1,833,700.67|8,661,780.26|2,165,445.08|
|reserves|||||
|Unattained internal sales|||||
||2,858,879.80|428,831.98|2,947,994.35|442,199.15|
|profits|||||
|Total|10,193,682.51|2,262,532.65|11,609,774.61|2,607,644.23|

（2）Details of the un-recognized deferred income tax liabilities
In RMB
||||||
|-|-|-|-|-|
||Balance in year-end||Balance in year-begin||
|Items|||||
||Temporarily Deductable|Deferred Income Tax|Temporarily Deductable|Deferred Income Tax|
||or Taxable Difference|liabilities|or Taxable Difference|liabilities|
|Stock equity disposition|||||
|Stock equity disposition|||||
|of the temporary|||||
||42,291,900.69|10,572,975.17|||
|taxable difference and|||||
|the taxable income|||||
|Changes in fair value of|1,113,878.29|278,469.57|42,225,680.94|10,556,420.24|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|financial assets|||||
|available for sale|||||
|Total|43,405,778.98|10,851,444.74|42,225,680.94|10,556,420.24|

 (3)Details of un-recognized deferred income tax assets
||
|-|
|Balance in year-end|
|85,512,740.17|
|495,605,796.60|
|581,118,536.77|

 Due to the uncertainty which exists in whether sufficient taxable income can be obtained in the future , therefore, delay-tax capital has not been confirmed.
（4）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
|||||
|-|-|-|-|
|Year|Balance in year-end|Balance in year-begin|Remark|
|2017|134,292,559.16|134,292,559.16||
|2018|129,226,944.33|129,226,944.33||
|2019|148,095,898.11|148,095,898.11||
|2020|83,990,395.00|||
|Total|495,605,796.60|411,615,401.60|--|

18. Short-term loan
（1）Categories of short-term loans
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-Beginning|
|Credit loans|53,866,521.87|24,676,594.72|
|Total|53,866,521.87|24,676,594.72|

 19.Account payable
（1）Account payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
||221,732,534.76|147,154,864.20|
|Within 1 year|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
||339,044.59|364,150.98|
|1-2 years|||
||64,917.00|281,468.35|
|2-3 years|||
||187,643.43|48,196.00|
|3-4 years|||
||38,046.00|33,784.50|
|4-5 years|||
||5,166,622.82|5,144,218.32|
|Over 5 years|||
|Total|227,528,808.60|153,026,682.35|

（2）Significant accounts payable that aged over one year
|||
|-|-|
|Balance in year-end|Age|
|5,089,267.83|Over 5 years|
|5,089,267.83||

20. Advance account
（1） Advance account
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Within 1 year|27,505,005.53|40,457,864.19|
|1-2 years|45,161.00|27,012.70|
|2-3 years|10,224.00|968.40|
|3-4 years||9,072.57|
|4-5 years||50.76|
|Over 5 years|639,024.58|640,541.38|
|Total|28,199,415.11|41,135,510.00|

 21.Payable Employee wage
（1）Payable Employee wage
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase in this period|Payable in this period|Balance in year-end|
|I. Short-term employee|37,736,705.46|121,924,801.52|125,103,684.58|34,557,822.40|
|benefits|||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|||9,307,301.55|8,557,301.55|750,000.00|
|II. Post-employment|||||
|benefits|||||
|III. Termination benefit||175,175.00|175,175.00||
|Total|37,736,705.46|131,407,278.07|133,836,161.13|35,307,822.40|

（2）Short-term remuneration
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase in this period|Payable in this period|Balance in year-end|
|||107,369,504.10|111,363,785.59||
|1.Wages, bonuses,|||||
||36,466,410.58|||32,472,129.09|
|allowances and subsidies|||||
|2.Employee welfare||5,323,050.11|5,323,050.11||
|3. Social insurance||2,457,634.32|2,457,634.32||
|premiums|||||
|Including：Medical||1,899,806.38|1,899,806.38||
|insurance|||||
|Work injury insurance||169,446.03|169,446.03||
|Maternity insurance||388,381.91|388,381.91||
|4. Public reserves for||4,452,911.39|3,932,911.39|520,000.00|
|housing|||||
|5.Union funds and staff|1,270,294.88|2,321,701.60|2,026,303.17|1,565,693.31|
|education fee|||||
|Total|37,736,705.46|121,924,801.52|125,103,684.58|34,557,822.40|

（3）Defined contribution plans listed
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase in this period|Payable in this period|Balance in year-end|
|1. Basic old-age||7,030,420.62|7,030,420.62||
|insurance premiums|||||
|2.Unemployment||545,800.73|545,800.73||
|insurance|||||
|3. Annuity payment||1,731,080.20|981,080.20||
|Total||9,307,301.55|8,557,301.55||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report 22.Tax Payable
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|VAT|135,460.12|475,624.79|
|Business Tax|510,707.45|658,958.83|
|City Construction tax|31,836.84|58,577.68|
|Enterprise Income tax|12,570,466.83|6,320,905.10|
|Individual Income tax|480,334.74|386,166.15|
|House property Tax|750,607.19|750,603.03|
|Education surcharge|22,964.43|85,549.33|
|Other|180,265.49|176,209.64|
|Total|14,682,643.09|8,912,594.55|

 23.Interest Payable
（.1）Interest Payable
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Interest on long-term borrowings payable|39,000,625.75|32,806,459.08|
|Interest on short-term borrowings|88,262.21|230,759.60|
|Total|39,088,887.96|33,037,218.68|

 24.Other payable
（1）Disclosure by nature
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Engineering Equipment fund|59,222,758.80|44,921,304.26|
|Unit account|24,819,916.41|38,703,210.28|
|Deposit|19,151,806.04|11,209,176.63|
|Drawing expenses|2,879,640.37|2,872,752.99|
|Other|19,701,602.18|14,948,418.90|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Total|125,775,723.80|112,654,863.06|

 25.Non-currentliabilitiesdue within 1 year
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Long-term borrowings due with in 1year|40,000,000.00|75,346,136.30|
|Total|40,000,000.00|75,346,136.30|

 The long-term borrowings at the end of period are the borrowings extended to the Company by Pingan Bank.Shenzhen Jiangsu Building Branch. Entrusted by Shenzhen Shenchao Technology Investment Co.,Ltd. 26.Long-term borrowings
（1）Long-term term borrowings
In rmb
||||
|-|-|-|
|Items|At end of term|At beginning of term|
|Credit borrowings|120,000,000.00|124,653,863.70|
|Total|120,000,000.00|124,653,863.70|

 The long-term borrowings at the end of period are the borrowings enxtended to the Company by Pingan Bank.Shenzhen Jiangsu Building Branch. Entrusted by Shenzhen Shenchao Technology Investment Co.,Ltd. 27.Deferredincome
||||||
|-|-|-|-|-|
||Balance in|Increase at this|Decrease at this|Balance in year-end|
|Items|||||
||year-begin|period|period||
|Govemment Subsidy|66,546,079.96|45,202,608.00|12,224,522.38|99,524,165.58|
|Total|66,546,079.96|45,202,608.00|12,224,522.38|99,524,165.58|

Details of govemmentsubsidy：
||||||||
|-|-|-|-|-|-|-|
||||The||||
||Balance in|New grants|||||
|Items||amount of this|non-operating|Other changed|Balance in|Income related to|
||year-begin||revenue amount||year-end|assets|
|||period|of this period||||
|Textile special|||||||
||1,142,857.16||142,857.14|1,000,000.02|1,142,857.16|Related to assets|
|funds|||||||
|High-tech|||||||
|Industrialization|1,000,000.00||200,000.00|800,000.00|900,000.00|Related to assets|
|demonstration|||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||||
|-|-|-|-|-|-|
|projects||||||
|National grant||||||
|fundsfor new flat||||||
||5,000,000.00|1,000,000.00|4,000,000.00|4,500,000.00|Related to assets|
|panel display||||||
|industry||||||
|Borrowing||||||
||1,209,722.08|241,944.44|967,777.64|1,088,749.87|Related to assets|
|discount||||||
|Government R &||||||
||7,909,980.00|7,909,980.00||3,954,990.00|Related to income|
|D subsidies||||||
|Grant funds for||||||
|TFT-LCD||||||
||9,533,333.34|1,300,000.00|8,233,333.34|8,883,333.34|Related to assets|
|polarizer industry||||||
|project||||||
|Grant funds for||||||
|TFT-LCD||||||
|polarizer narrow|4,000,000.00|500,000.00|3,500,000.00|3,750,000.00|Related to assets|
|line (line 5)||||||
|project||||||
|Purchase of||||||
|imported||||||
||1,377,377.58|175,090.20|1,202,287.38|1,289,832.48|Related to assets|
|equipment and||||||
|technology||||||
|Innovation and||||||
|venture capital||||||
||400,000.00|50,000.00|350,000.00|375,000.00|Related to assets|
|for TFT-LCD||||||
|polarier project||||||
|Shenzzhen||||||
|Engineering||||||
|laboratory||||||
|polarizing|500,000.00|37,500.00|462,500.00|500,000.00|Related to assets|
|material and||||||
|technical||||||
|engineering||||||
|Shenzhen||||||
|polarizingmateria||||||
||5,000,000.00|375,000.00|4,625,000.00|5,000,000.00|Related to assets|
|l and technical||||||
|engineering||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Capital funding|||||||
|for Technology|3,000,000.00||225,000.00|2,775,000.00|3,000,000.00|Related to assets|
|Center|||||||
|Subsidy funds to|||||||
|support the|||||||
|introduction of a|115,104.80||14,388.10|100,716.70|107,910.72|Related to assets|
|dvanced technolo|||||||
|gy|||||||
|Grant funds for|||||||
|TFT-LCD|||||||
|polarizer narrow|15,000,000.00|||15,000,000.00|15,000,000.00|Related to assets|
|line (line 6)|||||||
|project|||||||
|Grant funds for|||||||
|TFT-LCD|||||||
|polarizer narrow|10,000,000.00|||10,000,000.00|10,000,000.00|Related to assets|
|line (line 6)|||||||
|project|||||||
|Grant funds for|||||||
|TFT-LCD|||||||
|polarizer narrow|500,000.00|||500,000.00|500,000.00|Related to assets|
|line (line 6)|||||||
|project|||||||
|Imported|||||||
|equipment and|||||||
|technology of|857,705.00|||857,705.00|857,705.00|Related to assets|
|discount interest|||||||
|funds|||||||
|key technology|||||||
|research and deve|||||||
|lopment projects||5,000,000.00||5,000,000.00|5,000,000.00|Related to assets|
|of optical|||||||
|compensation|||||||
|film for polarizer|||||||
|Strategic|||||||
|industries|||||||
|Development|||||||
|||20,000,000.00||20,000,000.00|18,152.00|Related to assets|
|fund of|||||||
|Guangdong|||||||
|Province|||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Grants of|||||||
|Purchase|||||||
|equipment of|||||||
|||20,000,000.00||20,000,000.00||Related to assets|
|TFT-LCD|||||||
|polarizing film|||||||
|phase II project|||||||
|Energy saving|||||||
|transformation||202,608.00|52,762.50|149,845.50||Related to assets|
|grant funds|||||||
|Total|66,546,079.96|45,202,608.00|12,224,522.38|99,524,165.58|65,926,431.57|--|

Notes：
（1）According to the "Notice on National Development and Reform Commission to the General Office of the textile project management of the special funds" (Faigaiban[2006]2841), on December 22, 2006, the Company received "Textile special" funds RMB 2,000,000.00 from Shenzhen Finance Bureau. The company will use 14 years as asset depreciation period for amortization with the corresponding equipment in current period. The amortization in accordance with the corresponding equipment, The non-operating income in current period is RMB142,857.14, the ending balance of uncompleted amortization is RMB 1,000,000.02 .
(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 200,000.00 and the balance amount of unfinished final amortization is RMB 800,000.00.
(3) According to the document of the Office of the State Development and Reform Commission on "The Office of the State Development and Reform Commission on the Reply of New Flat-Panel Display Industrialization Special Project” (Development and Reform OfficeHigh-Tech【2008】No. 2104), the company obtained the state subsidies RMB 10,000,000.00 from the State Development and Reform Commission New Flat-Panel Display Industrialization Special Project for the construction of “The Project of Polaripiece Industrialization for TFT-LCD”. On June 2009, December 2009 and April 2010, the company received the special subsidies of State Development and Reform Commission RMB 10,000,000.00. Our company will use 10 years as asset depreciation period for amortization. The non-operating income in current period is RMB100,000.00, the balance amount of unfinished final amortization is RMB 4,000,000.00;
（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 241,944.44 and the balance amount of unfinished final
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report amortization is RMB967,777.64.
（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 7,909,980.00, The final allocation has beencompleted。
（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 RMB1,300,000.00. and the balance amount of unfinished final amortization is RMB8,233,333.34.
（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 RMB5,000,000.00 and the balance amount of unfinished final amortization is RMB3,500,000.00.
（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 RMB175,090.20 and the balance amount of unfinished final amortization is RMB1,202,287.38.
（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 non-operating income in current period is RMB50,000.00 and the balance amount of unfinished final amortization is RMB350,000.00.
（10）On December2013，The company received the funds for innovation and entrepreneurship of of TFT-LCD polarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matching funding category),the Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets. The non-operating income in current period is RMB37,500.00 and the balance amount of unfinished final amortization is RMB462,500.00.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report（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 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 RMB375,000.00 and the balance amount of unfinished final amortization is RMB4,625,000.00.
（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. 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 RMB225,000.00 and the balance amount of unfinished final amortization is RMB2,775,000.00.
(13)On March 2014 the company received the introduction of advanced technology import subsidy funds of RMB 143,881.00 from Shenzhen Finance Committee, the Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets. The non-operating income in current period is RMB14,388.10 and the balance amount of unfinished final amortization is RMB100,716.70.
（14）According to the "Shenzhen Municipal Development and Reform Commission Reply for Shenzhen Shengbo Optoelectronic Technology Co., Ltd. application for local matching funds of TFT-LCD polarizing film II project (Line 6) " (Shenzhen DRC[2013]No. 1771), the company obtained TFT-LCD polarizing film II project (line 6) local matching funds of RMB 15,000,000.00 in April 2014.The fund gap will be filled by the Company through raising funds by itself. The subsidy will be amortized over the depreciation period from the day when relevant assets get ready for intended use.
（15）According to "National Development and Reform Commission issued on industrial transformation and upgrading projects (2nd industrial restructuring) notify the central budget for 2014 investment plan" (NDRC Investment[2014] No. 1280), the company obtained TFT- LCD polarizer II project (line 6) state grants of RMB 10,000,000.00 in December 2014.The fund gap will be filled by the Company through raising funds by itself. The subsidy will be amortized over the depreciation period from the day when relevant assets get ready for intended use.
（16）In December 2014, the company received innovation venture capital (matching funding category) for Ping Shan District Development and Finance Bureau of TFT-LCD polarizing film II project (line 6) of RMB 500,000.00.The fund gap will be filled by the Company through raising funds by itself. The subsidy will be
amortized over the depreciation period from the day when relevant assets get ready for intended use;
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report（17）On September2014，The company received a discount of imported equipment and technology funds of RMB 857,705.00.The fund gap will be filled by the Company through raising funds by itself. The subsidy will be amortized over the depreciation period from the day when relevant assets get ready for intended use.
(18) On Jan. 2015, the company received RMB 5 million of grants for key technology research and development projects of optical compensation film for polarizer from Shenzhen Scientific and Technological Innovation Committee. The company will defer income share transferred in the current profit and loss on the basis of depreciation life as of the date of the predetermined workability state the related assets reach.
19. According to “Reply on Congregating Development in Emerging Industrial Area Strategic Pilot Implement Scheme of Guangdong Province ”(Reform and Development Office High-Tech[2013] No.2552, the Company received 20 million RMB of the pilot project fund( period II project of TFT-LCD polarizer).The company will defer income share transferred in the current profit and loss on the basis of depreciation life as of the date of the predetermined workability state the related assets reach.
20. According to Reform and Development Commission of Shenzhen Municipality sending the notice of “Reply of National Reform and Development Office on Investing in Petrifaction and Medicine Project within Central Budget of 2013 for Industry Structure Adjustment Special Project”(Reform and Development Commission of Shenzhen Municipality[2013]No.1449) , the Company received 20 million RMB of new production line of TFT-LCD polarizer project period II and equipment purchase subsidy in August 2015 and December 2015.The company will defer income share transferred in the current profit and loss on the basis of depreciation life as of the date of the predetermined workability state the related assets reach.
21. In 2015, the Company received the subsidy funds of 202,608.00 RMB on energy-saving reconstruction, amortized by 8-year depreciation life of the relevant asset, the no business income was 52,762.50 RMB at the current period, the ending balance without amortization was 149,845.50 RMB
28.Stock capital
|||||||||
|-|-|-|-|-|-|-|-|
|||Changed（+，-）||||||
||Balance in|||Capitalization|||Balance in|
|||Issuance of||||||
||year-begin||Bonus shares|of public|Other|Subtotal|year-end|
|||new share||||||
|||||reserve||||
|Total of capital|506,521,849.00||||||506,521,849.00|
|shares||||||||

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

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report 30.Other Comprehensive income
|||||||||
|-|-|-|-|-|-|-|-|
|||Amount of current period||||||
||||Less ：|||||
|||Amount for|Previously rec||After - tax a|After - tax a||
||Year-beginni||||||Year-end|
|Items||the period|ognized in pro|Less：|ttributable t|ttributable t||
||ng balance||||||balance|
||||fit or loss in ot|||||
|||before inco||Income tax|o the parent|o minority s||
||||her comprehen|||||
|||me tax|||company|hareholders||
||||sive income|||||
|1.Other comprehensive income will||||||||
|be reclassified into||||||||
|income or loss in the future||||||||
|Including: remeasurement of net||||||||
|assets or net liabilities of defined||||||||
|benefit plans||||||||
|Share of other comprehensive income||||||||
|of the investee that cannot be||||||||
|transferred to profit or loss accounted||||||||
|for using the equity method||||||||
|2.Other comprehensive income|33,389,117.46||||-30,176,930.11||3,212,187.35|
|||1,923,588.7||||||
|reclassifiable to profit or loss in|||31,669,260.70|431,258.19||||
|||8||||||
|subsequent periods||||||||
|Including ： Share of other||||||||
|comprehensive income of the||||||||
|investee that cannot be||||||||
|transferred to profit or loss||||||||
|accounted for using the equity||||||||
|method||||||||
|Gains and losses from changes|33,421,401.11||||-30,375,486.14||3,045,914.97|
|||1,725,032.7||||||
|in fair value of financial assets|||31,669,260.70|431,258.19||||
|||5||||||
|available for sale||||||||
|Held-to-maturity investment||||||||
|that is reclassified as financial||||||||
|assets available for sale||||||||
|Effective gains(losses) arising from||||||||
|cash flow hedging instruments||||||||
|Translation differences of financial|-32,283.65|198,556.03|||198,556.03||166,272.3|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|statements denominated||||||8|
|Total of other comprehensive income|33,389,117.46|1,923,588.78|||-30,176,930.11|3,212,187.35|
||||31,669,260.70|431,258.19|||

 31.Surplus reserve
||||||
|-|-|-|-|-|
|Items|Year-beginning balance|Increase in the current|Decrease in the current|Year-end balance|
|||period|period||
|Statutory surplus reserve|64,403,027.10|6,136,292.76||70,539,319.86|
|Total|64,403,027.10|6,136,292.76||70,539,319.86|

 The increase in the surplus reserves for the current period is caused by the legal surplus reserves withdrawn as per10% of the net profits of the parent company.
32.Retained profits
||
|-|
|Amount of this period|
|6,805,203.33|
|6,805,203.33|
|8,497,227.40|
|6,136,292.76|
|9,166,137.98|

 33.Business income, Business cost
（1）Business income
||
|-|
|Amount of current period|
|1,220,983,979.24|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||
|-|
|5,762,812.38|
|1,226,746,791.62|
|1,136,902,952.29|
|5,608,060.55|
|1,142,511,012.84|

（2）Mainbusiness（Industry）
||||
|-|-|-|
|Amount of current period|||
|Business income|Business cost|Business income|
|429,639,819.01|423,199,182.16|418,662,598.31|
|700,600,503.65|690,228,637.37|697,875,210.57|
|90,743,656.58|23,475,132.76|88,681,033.81|
|1,220,983,979.24|1,136,902,952.29|1,205,218,842.69|

（3）Mainbusiness（Production）
||||
|-|-|-|
|Amount of current period|||
|Business income|Business cost|Business income|
|90,743,656.58|23,475,132.76|88,681,033.81|
|25,205,284.70|27,117,500.23|36,871,877.02|
|803,719,803.87|787,302,128.29|734,488,663.78|
|301,315,234.09|299,008,191.01|345,177,268.08|
|1,220,983,979.24|1,136,902,952.29|1,205,218,842.69|

（4）MainBusiness（Area）
||||
|-|-|-|
|Amount of current period|||
|Business income|Business cost|Business income|
|446,846,597.09|396,404,251.87|427,602,892.57|
|774,137,382.15|740,498,700.42|777,615,950.12|
|1,220,983,979.24|1,136,902,952.29|1,205,218,842.69|

（5）Operating income from top five clients
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||
|-|
|Income|
|318,888,124.08|
|300,886,664.10|
|141,768,566.85|
|40,520,628.95|
|33,128,839.03|
|835,192,823.01|

 34.Business tax and subjoin
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Business tax|4,569,235.38|4,627,582.53|
|Urban construction tax|456,427.96|534,309.40|
|Education surcharge|282,652.28|381,647.42|
|Other|2,316,656.14|2,362,429.89|
|Total|7,624,971.76|7,905,969.24|

 35.Sales expenses
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage|3,328,467.06|4,363,205.11|
|Transportation changes|3,570,014.59|5,836,916.82|
|Exhibition fee|214,273.75|427,035.70|
|Advertising expenses|21,367.52|47,821.93|
|Business expenses|803,058.95|796,292.50|
|Samples and product loss|153,275.77|131,439.90|
|Other|3,653,457.09|2,464,913.21|
|Total|11,743,914.73|14,067,625.17|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report 36.Administrative expenses
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage|43,599,715.93|39,927,512.63|
|Property insurance|531,310.04|520,476.41|
|Repair charge|1,040,496.65|320,063.00|
|Business entertainment|1,436,619.00|1,839,218.23|
|Travel expenses|1,135,661.35|1,415,640.88|
|Office expenses|1,487,998.89|1,731,141.43|
|Water and electricity|3,839,832.91|655,053.39|
|Tax|1,364,877.14|1,222,081.41|
|Lawsuit expenses|120,304.55|412,056.24|
|Agency expenses|1,710,285.57|2,457,575.02|
|R& D|30,867,294.24|55,070,970.28|
|Board fees|65,515.20|73,289.60|
|Other|7,945,060.22|6,300,185.37|
|Depreciation of fixed assets|6,370,639.10|4,948,505.73|
|Amortization of intangible assets|1,205,966.55|2,298,368.48|
|Amortization of long-term deferred|||
|expenses|134,803.96|49,821.45|
|Low consumables amortization|188,323.00|254,145.90|
|Total|103,044,704.30|119,496,105.45|

 37.Financial Expenses
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Interest expenses|6,843,784.81|9,608,435.14|
|Interest income|-38,467,889.51|-33,143,531.65|
|Exchange loss|6,356,852.45|-7,497,707.98|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Fees and other|818,934.15|639,963.89|
|Total|-24,448,318.10|-30,392,840.60|

38.Loss of assets impairment
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|I .Losses for bad debts|3,364,121.82|-5,232,365.43|
|II. Losses for falling price of inventory|48,814,110.58|56,794,403.85|
|III. Goodwill impairment|9,614,758.55||
|Total|61,792,990.95|51,562,038.42|

 39.Investment income
1.Detail
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Investment income from the disposal of|||
||2,431,042.20|1,788,818.78|
|long-term equity investment|||
|Investment income arising from disposal of|||
|long-term equity investment|||
|Hold the investment income during from|4,374,824.87|4,609,627.57|
|available-for-sale financial assets|||
|Investment income gain from available for sale|||
||88,006,690.51|16,896,190.19|
|financial assets|||
|Total|94,812,557.58|23,294,636.54|

 2.Long-term equity investment income by costing
|||
|-|-|
|Amount of current period|Amount of previousperiod|
|635,434.15|574,502.13|
|386,836.52|350,422.87|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
|Amount of current period|Amount of previousperiod|
|57,218.31|55,707.44|
|-76,209.23|395,273.09|
|1,427,762.45|412,913.25|
|2,431,042.20|1,788,818.78|

40. Non-Operation income
1．Non-Operation income
|||||
|-|-|-|-|
|Items|Amount of current period|Amount of previous period|Recorded in the amount of the|
||||non-recurring gains and losses|
|Total gains from disposal of|235,533.62|135,925.51||
||||235,533.62|
|non-current assets||||
|Including：Gains from disposal||||
||235,533.62|135,925.51|235,533.62|
|of fixed assets||||
|Government Subsidy|21,420,940.38|16,688,387.98|21,420,940.38|
|Other|2,465,865.62|4,335,675.77|2,465,865.62|
|Total|24,122,339.62|21,159,989.26|24,122,339.62|

2．Government subsidy reckoned into current gains/losses
|||||
|-|-|-|-|
||||Assets-related/|
||Amount of this|Amount of last||
|Items|||income|
||period|period||
||||-related|
||||Related to the|
|Grant funds for TFT-LCD polarizer narrow line (line 5)||||
||500,000.00|500,000.00|assets|
|project||||
||||Related to the|
||175,090.20|175,090.20|assets|
|Purchase of imported equipment and technology||||
||||Related to the|
||142,857.14|142,857.14|assets|
|Textile special funds||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
||||Related to|
||7,909,980.00|7,909,980.00|income|
|Government R & D subsidies||||
||||Related to the|
||200,000.00|200,000.00|assets|
|High-tech Industrialization demonstration projects||||
||||Related to the|
||1,000,000.00|1,000,000.00|assets|
|National grant fundsfor new flat panel display industry||||
||||Related to the|
|Loan subsidy interest allocated by Finance Commission||||
||241,944.44|241,944.44|assets|
|of Shenzhen Municipality||||
||||Related to the|
|Subsidy amortization of the projecto of TFT-LCD||||
||1,300,000.00|1,300,000.00|assets|
|polarizer industrialization||||
|Innovation entrepreneurship fund amortization of||||
||||Related to the|
|TFT-LCD polarizer period I project for Pingshan New||||
||50,000.00|50,000.00|assets|
|District Development and Finance Bureau||||
||||Related to the|
|Financing aid amortization of introducing advanced||||
||14,388.10|28,776.20|assets|
|technique||||
||||Related to|
|Innovation entrepreneurship subsidy of Pingshan New||||
||590,000.00||income|
|District Development and Finance Bureau||||
||||Related to|
|Reward funds for innovation of SASAC of Shenzhen||||
|||300,000.00|income|
|Municipality||||
||||Related to|
|Special fund subsidy of industry development of Futian||||
||63,000.00|32,000.00|income|
|District||||
|Financing aid of Finance Commission of Shenzhen||||
||||Related to|
|Municipality for optimizing foreign trade export||||
||74,623.00||income|
|structure||||
||||Related to|
|||6,380.00|income|
|Financing aid of the domestic market development||||
||||Related to|
||93,543.00|60,460.00|income|
|Subsidy of the exhibition||||
||||Related to|
|||250,000.00|income|
|Financing aid of science and technology platform||||
||||Related to|
||88,152.00|100,000.00|income|
|Interest subsidy||||
||||Related to|
|||200,000.00|income|
|Subsidy of dyeing polarizer project||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
||||Related to|
|Incentive of outstanding science-and-technology||||
|||50,000.00|income|
|enterprise||||
||||Related to|
||8,287,100.00|4,140,900.00|income|
|High-tech major projects Special funds||||
|Shenzhen Engineering laboratory polarizing material and|||Related to|
|technical engineering|37,500.00||assets|
||||Related to|
|Shenzhen polarizing material and technical engineering||||
||375,000.00||assets|
||||Related to|
|Capital funding for Technology Center|225,000.00||assets|
||||Related to|
|Energy saving transformation grant funds amortization||||
||52,762.50||assets|
|Total|21,420,940.38|16,688,387.98||

41．Non-current expenses
|||||
|-|-|-|-|
||Amount of current period|Amount of previous period|The amount of non-operating|
|Items||||
||||gains & lossed|
|Total of non-current asset|260,642.59|83,643.89||
||||260,642.59|
|Disposition loss||||
|Incl: loss of fixed assets||||
||260,642.59|83,643.89|260,642.59|
|disposition||||
|Other|23.02|113.60|23.02|
|Total|260,665.61|83,757.49|260,665.61|

 42.Income tax expenses
(1)Income tax expenses
||||
|-|-|-|
||Amount of current period|Amount of previous period|
|Items|||
|Current income tax expense|24,352,326.20|14,590,550.96|
|Deferred income tax expense|10,302,193.13|36,941,833.66|
|Total|34,654,519.33|51,532,384.62|

(2)Reconciliation of account profit and income taxexpenses：
In RMB
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
|Items|Amount of current period|
|Total profits|43,151,746.73|
|Income tax computed in accordance with the applicable tax rate|10,787,936.68|
|Effect of different tax rate applicable to the subsidiary Company|905,254.95|
|Influence of income tax before adjustment|69,480.07|
|Influence of non taxable income|-3,054,186.40|
|Impact of non-deductible costs, expenses and losses|3,862,227.82|
|Affect the use of deferred tax assets early unconfirmed||
|deductible losses||
|The current period does not affect the deferred tax assets|22,083,806.21|
|recognized deductible temporary differences or deductible loss||
|Income tax expense|34,654,519.33|

 43.Other comprehensive income
1．Other comprehensive income items and income tax effects and transferred to profit and loss
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|I. Net amount included in other comprehensive|||
|income that cannot be transferred to profit or loss|||
|in the future|||
|I.Share of other comprehensive income of the investee that|||
|cannot be transferred to profit or loss accounted for using|||
|the equity method|||
|II. Net amount included in other comprehensive|||
|income that can be transferred to profit or loss in|-30,176,930.11|9,854,344.17|
|the future|||
|1.|||
|Share of other comprehensive income of the|||
|investee that can be transferred to profit or loss|||
|accounted for using the equity method|||
|Less：Previously recognized in other comprehensive|||
|income, Profit or loss in current period|||
|Subtotal|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|2. The income gains (losses) amount of available for sale|||
||1,725,032.75|30,124,854.43|
|financial assets|||
|Less： Recognized in other comprehensive income that tax|||
||431,258.19|7,531,213.61|
|effect amount|||
|Less：Previously recognized in other comprehensive|||
||31,669,260.70|12,707,013.00|
|income, Profit or loss in current period|||
|Subtotal|-30,375,486.14|9,886,627.82|
|3.|||
||198,556.03|-32,283.65|
|Translation differences of financial statements|||
|denominated in foreign currencies|||
|Less：Previously recognized in other comprehensive|||
|income, Profit or loss in current period|||
|Subtotal|198,556.03|-32,283.65|
|III.Total of other comprehensive income|-30,176,930.11|9,854,344.17|

 2.Adjustment process of accounting profit and income tax expense
|||
|-|-|
|Gains and losses fromchanges in fair value ofavailable for salefinancial assets|Foreign currencytranslation differencesof financial statements|
|23,534,773.29||
|9,886,627.82|-32,283.65|
|33,421,401.11|-32,283.65|
|-30,375,486.14|198,556.03|
|3,045,914.97|166,272.38|

 44.Items of Cash flow statement
(1)Other cash received from business operation
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
||54,399,026.00|31,641,326.00|
|Government Subsidy|||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
||41,127,157.51|44,113,060.32|
|Bank deposit interest income and other|||
|Total|95,526,183.51|75,754,386.32|

 2.Other cash paid related to operating activities
Other cash paid relating to operating activities this period was RMB 50,155,116.37, mainly for the payment of the cost of sales and administration expenses.
3.Other Cash received related to investment activities
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Structure deposit and income|30,591,780.82|201,803,986.29|
|Other||567,210.00|
|Total|30,591,780.82|202,371,196.29|

 (4)Cash paid related to other investment activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Structure deposit investment|490,000,000.00|100,000,000.00|
|Other|59,223.58||
|Total|490,059,223.58|100,000,000.00|

 45.Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
|||||||
|-|-|-|-|-|-|
|Supplement Information|||Amount of||Amount of|
||||current period||previous period|
|I. Adjusting net profit to cash flow from operating activities||||||
|Net profit|||8,497,227.40||-113,591,328.26|
|Add: Impairment loss provision of assets|||15,178,431.93||-24,728,253.16|
||Depreciation of fixed assets, oil and gas assets and consumable biological|80,299,389.88||78,523,175.42||
||assets|||||
|Amortization of intangible assets|||1,205,966.55||2,298,368.48|
||Amortization of intangible assets|||||
||Amortization of Long-term deferred expenses||292,639.56||385,402.12|
|Loss on disposal of fixed assets, intangible assets and other long-term|||||-52,725.62|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|Supplement Information||Amount of|Amount of|
|||current period|previous period|
||deferred assets|||
||Loss on scrap of fixed assets|25,108.97|444.00|
||Loss on fair value changes|||
||Financial cost|-12,222,940.66|5,937,407.06|
||Loss on investment|-94,812,557.58|-23,294,636.54|
||Decrease in deferred income tax assets|192,322.96|36,941,833.66|
||Increased of deferred income tax liabilities|10,572,975.17|-52,384,071.50|
||Decrease of inventories|-80,315,474.20|-7,352,419.31|
|Decease of operating receivables||11,626,183.95|-49,608,590.83|
|Increased of operating Payable||99,045,226.43|102,121,539.16|
||Increased of operating Payable|||
||Other||-3,897,638.73|
||Net cash flows arising from operating activities|39,584,500.37|-48,701,494.05|
||II. Significant investment and financing activities that without cash|||
||flows:|||
||Debt-to-capital conversion|||
||Convertible loan due within 1 year|||
||Fixed assets acquired under financial lease|||
||3．Movement of cash and cash equivalents：|||
||Ending balance of cash|748,658,875.60|1,098,232,359.02|
||Less: Beginning balance of cash equivalents|1,098,232,359.02|943,913,951.68|
||Add：Ending balance of cash equivalents|||
||Less: Beginning balance of cash equivalents|||
||Net increase of cash and cash equivalents|-349,573,483.42|154,318,407.34|

 (2)Composition of cash and cash equivalents
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|I. Cash|1,098,232,359.02|943,913,951.68|
|Including：Cash at hand|8,588.42|85,537.12|
|Demand bank deposit|1,097,734,798.40|941,362,518.21|
|Demand other monetary funds|488,972.20|2,465,896.35|
|Depositing performs|||
|Loan to performs|||
|II. Cash equivalents|||
|Including：Debt instrument matured within|||
|three months|||
|III. Balance of cash and cash equivalents at|||
|the period end|||
||1,098,232,359.02|943,913,951.68|

 46.Foreign currency monetary items
(1)Foreign currency monetary items
|||||
|-|-|-|-|
||Closing foreign currency||Closing convert to RMB|
|Items||Exchange rate||
||balance||balance|
|Monetary funds||||
|Including：USD|8,497,366.48|6.4936|55,178,498.97|
|JPY|5,371,949.00|0.053875|289,413.75|
|HKD|154,976.76|0.83778|129,836.43|
|Account receivable||||
|Including：USD|9,770,547.62|6.4936|63,446,028.03|
|JPY|240,306.00|0.053875|12,946.49|
|HKD|278,280.00|0.83778|233,137.42|
|Other receivable||||
|Including：HKD|330,841.65|0.83778|277,172.52|
|Account payable||||
|Including：USD|17,319,633.39|6.4936|112,466,771.38|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|JPY|1,731,904,956.09|0.053875|93,306,379.51|
|Other payable||||
|Including：USD|81,000.00|6.4936|525,981.60|
|JPY|24,567,800.00|0.053875|1,323,590.23|
|HKD|1,530,628.30|0.83778|1,282,329.78|
|Euro|51,500.00|7.0952|365,402.80|
|Short –term loans||||
|Including：USD|2,226,967.88|6.4936|14,461,038.63|
|JPY|731,424,283.00|0.053875|39,405,483.25|
|Interest payable||||
|Including：USD|260.20|6.4936|1,689.63|
|JPY|1,606,915.99|0.053875|86,572.60|

 VI. Change in consolidation scope
No change of scope of consolidation from last year.
VII. Equity in other entity
1. Equity in subsidiary
（1）Constitute of enterprise group
||||||||
|-|-|-|-|-|-|-|
|||||Share-holding ratio|||
|Subsidiary|Main operation|Registered place|Business nature|||Acquired way|
|||||Directly|Indirectly||
|Shenzhen Lishi|||||||
||||Domestic trade,||||
|Industry|Shenzhen|Shenzhen||||Establish|
||||Property||||
|Development Co.,|||||||
||||Management|100.00|||
|Ltd|||||||
||||Accommodation,|||Establish|
|Shenzhen|||||||
||Shenzhen|Shenzhen|||||
||||restaurants,||||
|Huaqiang Hotel||||100.00|||
||||business center;||||
|Shenfang||||||Establish|
|Property|Shenzhen|Shenzhen|Property||||
|Management Co.,|||Management||||
|||||100.00|||
|Ltd.|||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
||||Production of|||Establish|
|Shenzhen Beauty|||||||
|Century Garment|Shenzhen|Shenzhen|fully electronic|100.00|||
||||jacquard knitting||||
|Co., Ltd.|||whole shape||||
|Shenzhen|||||||
||||Operating import||||
|Shengbo|Shenzhen|Shenzhen|||||
|||||||Purchase|
|Ophotoelectric|||||||
||||and export||||
|Technology Co.,|||||||
|||||100.00|||
|Ltd|||business||||
|Shenzhen|||Operating import||||
|Shenfang Import|Shenzhen|Shenzhen||||Establish|
||||and export||||
|& export Co.,|||||||
||||||100.00||
|Ltd.|||business||||
|Shengtou|||||||
||||Production and||||
|(Hongkong)|Hongkong|Hongkong||||Establish|
|Co.,Ltd.|||sales of polarizer||100.00||

2.Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
||||||||
|-|-|-|-|-|-|-|
|||||Holding proportion(%)||The accounting|
|Joint venture or|||||||
|associated|Place of operation|Place of|Nature|||treatment of|
|||||Directly|Indirectly||
|||registration||||investment in|
|enterprise|||||||
|||||||associates|
|Shenzhen Haohao|||||||
|Property Leasing|Shenzhen|Shenzhen|Property leasing|50.00||Equity method|
|Co., Ltd.|||||||
|Shenzhen Xieli|||||||
|Automobile Co.,|Shenzhen|Shenzhen|Property leasing|50.00||Equity method|
|Ltd.|||||||
|Shenzhen|||||||
|Changlianfa|||||||
||Shenzhen|Shenzhen|Property leasing|40.25||Equity method|
|Printing and|||||||
|dyeing Company|||||||
|Jordan Garment|||||||
||Jordan|Jordan|Manufacturing|35.00||Equity method|
|Factory|||||||
|Yehui|||||||
|International Co.,|Hongkong|Hongkong|Manufacturing|22.75||Equity method|
|Ltd.|||||||

(2)Key financial information of significant joint venture or associated enterprise
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||
|-|
|Year-end balance/ Amountof current period|
|8,193,144.85|
|1,022,270.67|
|1,022,270.67|
|14,686,124.21|
|1,408,771.53|
|198,556.03|
|1,607,327.56|
|545,386.50|

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

According to the company along with Hongkong Qiaohui Industries Co.,Ltd. signed "Agreement on cooperative development and construction of Guanhua building", jointly developed Guanhua building construction, the compa ny invested50.16%, Hong Qiao Hui Industrial Co., Ltd. invested49.84%, the two sides need to agree matters affe cting the cooperation projects. In addition, the two sides agreed to the project is completed in accordance with the
ratio of the actual investment allocation or co-operation, specific programs need further deliberations.
As of the reporting period, Guanhua unfinished building projects.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report VIII. Risks Related to Financial Instruments
The company has the main financial instruments, such as bank deposits, receivables and payables, investments, loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these financial instruments mainly include credit risk, market risk and liquidity risk. Thecompany’s management shall manage and monitor these risks and ensure above risks to be controlled within certain scope.
（I）Credit Risk
The credit risk of the company is primarily attributable to bank deposits and receivables. Of which, the bank deposits are mainly deposited in the medium and large commercial banks with strength, high credibility. For the receivables, the company has developed the relevant policies to control the credit risk, and set up the corresponding debt and credit limit after the credit status of debtor is evaluated based on financial condition of debtor, credit history, external ratings, possibility of guarantee obtained from the third party. Meanwhile, the company shall regularly monitor thedebtor’s credit history. With regard to the bad credit record for the debtor, the company shall adopt the written reminder, shortening or cancel of credit period to ensure the overall credit risks within the controllable scope.
（II）Market risk
Market risk of financial instrument arises from changes in fair value or future cash flow of financial instruments affected by market price . Market risks includes foreign exchange risk and interest risk.
(1) Interest Rate Risk
The interest rate risk faced by the company is mainly from the bank borrowings. The company is faced the interest rate risk of the cash flow due to the financial liability of the floating interest rate, and faced the interest rate risk of the fair value due to the financial liability of the fixed interest rate. The company shall determine the relative proportion in the fixed and floating interest rate contracts.
(2) Foreign Exchange Risk
The foreign exchange risks faced by the company are mainly from the financial assets and liabilities based on the price of US dollar and JPY. The company matches the income and expenditure of foreign currency as far as possible in order to reduce the foreign exchange risk.
（III）Liquidity risk
Liquidity risk refers to fund shortage problems when fulfilling obligations settled in cash or other financial assets. The company shall guarantee to have the sufficient funds to repay the debts through monitoring the cash balance, the marketable securities available to be cash and the rolling forecast for the future cash flow.
IX. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
||||||
|-|-|-|-|-|
||Closing fair value||||
|Items|Fir value measurement|Fir value measurement|Fir value measurement||
|||||Total|
||items at level 1|items at level 2|items at level 3||
|I. Consistent fair value|||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|measurement|||
|(1).Available for sale|||
||10,054,476.60|10,054,476.60|
|financial assets|||
|1.Equity instrument|||
||10,054,476.60|10,054,476.60|
|investment|||
|Total of Consistent fair|||
||10,054,476.60|10,054,476.60|
|value measurement|||

2. Market price recognition basis for consistent and inconsistent fair value measurement items at level
The fair value of financial assets available for sale at the end of period is measured based on the closing price of Shenzhen Stock Exchange on December 31,2016.
X. Related parties and related-party transactions
1.Parent company information of the enterprise
|||||||
|-|-|-|-|-|-|
|||||The parent company|The parent company|
||||Registered capital|||
|Name|Registered address|Nature||||
|||||of the Company's|of the Company’s|
||||（RMB’0000）|||
|||||shareholding ratio|vote ratio|
||18/F, Investment|Equity investment ,||||
|Shenzhen||||||
||Building, Shennan|Real-estate||||
|Investment Holdings|||2,145,000.00|46.21%|49.39%|
||Road, Futian|Development and||||
|Co.,Ltd.||||||
||District, Shenzhen|Guarantee||||

The company is authorized and approved to be state-owned independent company by Shenzhen Government, and it Executes financial contributor function on state-owned enterprise within authorization scope.
The finial control of the Company was ShenzhenPeople’s Govemment state owned assets supervision& Administration Commission.
2.Subsidiaries of the Company
Details refer to the Note VII-1, Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note VII-2, Interests in joint ventures or associates
4.Other Related parties information
|||
|-|-|
|Other related party|Relationship to the Company|
|Shenzhen Shenchao Technology Investment Co., Ltd.|Subject to the same party controls|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
|Shenzhen Tianma Microelectronics Co., Ltd.|Chairman of the Board Is the Vice Chairman of the Company|
|Shengbo （HK）Co., Ltd.|The Company Executives are Director of the company|
|Shenzhen Xiangjiang Trade Co., Ltd.|Sharing Company|
|Shenzhen Xinfang Knitting Co., Ltd.|Sharing Company|
|Shenzhen Dailishi Underwear Co., Ltd.|Sharing Company|
|Anhui Huapeng Textile Co., Ltd.|Sharing Company|

5. Related transactions.
1．Sales of goods and vendering of services
|||||
|-|-|-|-|
|Related party|Content|Amount of current period|Amount of previous period|
|Shenzhen Tianma||2,077,019.45|3,169,202.48|
||Sales polarizer sheet|||
|Microelectronics Co., Ltd.||||

2．Entrusted loans to related parties
For the construction of the project of polarizer sheet for TFT-LCD, the Company signed Entrusted Loan Contract with Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Jiangsu Building Sub-branch of Shenzhen Development Bank Co., Ltd. in 2010. According to the contract, Shenzhen Shenchao Technology Investment Co., Ltd. entrusted Shenzhen Jiangsu Building Sub-branch of Shenzhen Development Bank Co., Ltd. to extend a loan of RMB 200 million to the Company. The term of the loan is 108 months from the day when the first installment of entrusted loan is transferred to the account of the Company. The interest rate of the entrusted loan is the rate of commercial loans with a term of 5 years quoted by People's Bank of China minus2%. 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 December 31, 2015, The Company actually received a loan of RMB 160 million. 3. Rewards for the key management personnel
||
|-|
|Amount of current period|
|4.3809 million|

6. Receivables and payables of related parties
（1）Receivables
|||||||
|-|-|-|-|-|-|
|||Amount at year end||Amount at year beginning||
|Name|Related party|||||
|||Balance of Book|Bad debt Provision|Balance of Book|Bad debt Provision|
||Shenzhen Tianma|||||
|Account receivable||349,938.59|17,496.93|568,133.34|28,406.67|
||Microelectronics|||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||||
|-|-|-|-|-|-|
||Co., Ltd.|||||
|Other Account|Anhui Huapeng|||||
|||3,600,000.00|270,000.00|1,800,000.00|90,000.00|
|receivable|Textile Company|||||
|Other Account|Shenzhen Dailishi|||||
|||277,172.52|13,858.63|257,450.22|12,872.51|
|receivable|Underwear Co., Ltd.|||||

（2）Payables
In RMB
|||||
|-|-|-|-|
|Name|Related party|Amount at year end|Amount at year beginning|
||Shenzhen Xinfang Knitting Co.,|||
|Other payable||244,789.85|244789.85|
||Ltd.|||
||Shenzhen Xiangjiang Trade|||
|Other payable||40,000.00|40,000.00|
||Co., Ltd.|||
||Shenzhen Changlianfa Printing|||
|Other payable||916,673.69|584,644.49|
||and dyeing Co., Ltd.|||
||Shenzhen Haohao Property|||
|Other payable||4,179,489.85|3,479,489.85|
||Leasing Co., Ltd.|||
|Other payable|Yehui International Co.,Ltd.|1,137,966.35|1,071,546.49|
|Other payable|Shengbo （Hongkong）Co., Ltd.|315,000.00|315,000.00|
||Shenzhen Shenchao Technology|||
|Interest payable||39,000,625.75|32,806,459.08|
||Investment Co., Ltd.|||

XI. Subsequent events
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. As of December 31,2015, this case was in process.
XII. Post-balance-sheet events
According to the dividend distribution preplan made by the board of directors of the Company, the Company will neither distribute profits nor capitalize capital surplus for the current period.
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report XIII. Notes s of main items in financial reports of parent company
（1）Account receivable
1.Classification account receivables.
Year-end balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion(%)|Amount|Proportion(%)|
|862,162.70|100.00|43,108.13|5.00|
|862,162.70|100.00|43,108.13||

Year-beginning
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion(%)|Amount|Proportion(%)|
|493,566.28|100.00|24,678.31|5.00|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report Year-beginning
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion(%)|Amount|Proportion(%)|
|493,566.28|100.00|24,678.31||

In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
|||||
|-|-|-|-|
||Balance in year-end|||
|Aging||||
||Account receivable|Bad debt provision|Proportion(%)|
|Within 1 year|862,162.70|43,108.13|5.00|

 2.Other receivable
(1)Category of Other receivable
Year-end balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion(%)|Amount|Proportion(%)|
|11,981,464.60|12.98|11,981,464.60|100.00|
|79,979,624.27|86.68|7,435,914.49|9.30|
|311,486.35|0.34|311,486.35|100.00|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report Year-end balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion(%)|Amount|Proportion(%)|
|92,272,575.22|100.00|19,728,865.44||

Year-beginning
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion(%)|Amount|Proportion(%)|
|11,981,464.60|14.30|11,981,464.60|100.00|
|71,511,079.72|85.33|6,929,687.26|9.69|
|311,486.35|0.37|311,486.35|100.00|
|83,804,030.67|100.00|19,222,638.21||

（1）Other Receivable accounts with large amount individually and bad debt provisions were provided
Balance at year-end
Other receivable（Unit）
||||
|-|-|-|
|Other receivable|Provision for bad debts|Proportion%|
|11,389,044.60|11,389,044.60|100.00|
|592,420.00|592,420.00|100.00|
|11,981,464.60|11,981,464.60||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report（2）In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
|||||
|-|-|-|-|
||Amount in year-end|||
|Aging||||
||Other receivable|Bad debt provision|Withdrawal proportion|
|Within 1 year|70,741,994.77|3,537,099.74|5.00%|
|1-2 years|1,800,000.00|180,000.00|10.00%|
|Over 3 year|7,437,629.50|3,718,814.75|50.00%|
|Total|79,979,624.27|7,435,914.49||

2.The amount of allowance for bad debt recovered or reversed during the current year is RMB506,227.23.
（3）Other accounts receivable classified by the nature of accounts
In RMB
||||
|-|-|-|
|Category|Year-end balance|Year-beginning balance|
|Internal current account|75,889,102.97|69,244,280.72|
|Unit account|16,251,300.27|14,431,577.97|
|Other|132,171.98|128,171.98|
|Total|92,272,575.22|83,804,030.67|

（4）The ending balance of other receivables owed by the imputation of the top five parties
|||||
|-|-|-|-|
|Nature|Year-endbalance|Age|Portion in totalotherreceivables(%)|
|Internal current account|63,644,822.25|Within 1 year|68.98|
|Unit account|11,389,044.60|Over 3 years|12.34|
|Internal current account|7,168,680.72|Over 3 years|7.77|
|Internal current account|5,000,000.00|Within 1 year|5.42|
||75,600.00|Over 3 years|0.08|
|Unit account|1,800,000.00|Within 1 year|1.95|
||1,800,000.00|1-2 Year|1.95|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||
|-|-|
|90,878,147.57|98.49|

 3.Long-term equity investment
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items||Bad debt|||Bad debt||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Investment to thesubsidiary|||||||
||1,772,806,395.91|16,582,629.30|1,756,223,766.61|1,779,106,095.91|2,249,587.82|1,776,856,508.09|
|Investment tojoint ventures andassociatedenterprises|||||||
||23,145,924.05|266,654.99|22,879,269.06|21,061,712.32|266,654.99|20,795,057.33|
|Total|1,795,952,319.96|16,849,284.29|1,779,103,035.67|1,800,167,808.23|2,516,242.81|1,797,651,565.42|

（1）Investment to the subsidiary
||||||||
|-|-|-|-|-|-|-|
||||||Withdrawn||
|||||||Closing balance|
||||||impairment||
|Name|Opening balance|Increase|Decrease|Closing balance||of impairment|
||||||provision in the||
|||||||provision|
||||||reporting period||
|Shenzhen Shengbo|1,716,663,070.03||||||
|Optoelectrionc|||||||
|Technology Co.,|||||||
|||||1, 716,663,070.03|14,415,288.09|14,415,288.09|
|Ltd.|||||||
|Shenzhen Lisi|||||||
|Industrial|||||||
|Development Co.,|||||||
|Ltd.|8,073,388.25|||8,073,388.25|||
|Shenzhen Beauty|||||||
|Centruty Garment|||||||
|Co., Ltd.|30,867,400.00|||30,867,400.00||2,167,341.21|
|Shenzhen|||||||
|Shenfang Import|||||||
|& Export Co., Ltd|6,299,700.00||6,299,700.00||||
|Shenzhen|||||||
|Huaqiang Hotal|15,489,351.08|||15,489,351.08|||
|Shenfang Property|1,713,186.55||||||
|||||1,713,186.55|||
|Management Co.,|||||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Ltd.|||||||
|Total|1,779,106,095.91|0.00|6,299,700.00|1 ,772,806,395.91|14,415,288.09|16,582,629.30|

（2）Investment to joint ventures and associated enterprises
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase /decrease in reporting period||||||||||
||||||||||||Closing|
||||||Adjustme|||||||
|||||||||Withdraw|||balance|
||||Decreas|Gain/loss|nt of||Declarati|||||
||Opening|Add||||Other||n||Closing|of|
|Name||||||||||||
||||ed|of|other||on of cash|||||
||balance|investme||||equity||impairme|Other|balance|impairme|
||||investm|Investme|comprehe||dividends|||||
|||nt||||changes||nt|||nt|
||||ent|nt|nsive||or profit|||||
|||||||||provision|||provision|
||||||income|||||||
|I. Joint ventures||||||||||||
|Shenzhen||||||||||||
|Haohao||||||||||||
|Property||||||||||||
|Leasing Co.,||||||||||||
||3,762,406.|||635,434.1||||||4,397,840||
|Ltd.||||||||||||
||73|||5||||||.88||
|Shenzhen||||||||||||
|Xieli||||||||||||
|Automobile||||||||||||
||3,675,122.|||386,836.5||||||4,061,958|266,654.9|
|Co., Ltd.||||||||||||
||44|||2||||||.96|9|
||7,437,529.|||1,022,270||||||8,459,799|266,654.9|
|Subtotal||||||||||||
||17|||.67||||||.84|9|
|II. Associated enterprises||||||||||||
|Shenzhen||||||||||||
|Changlianfa||||||||||||
|Printing and||||||||||||
|dyeing||||||||||||
||1,814,158.|||||||||1,871,377||
|Company||||||||||||
||78|||57,218.31||||||.09||
|Jordan||||||||||||
|Garnent||||||||||||
||3,262,744.|||-76,209.2|197,479.0|||||3,384,014||
|Factory||||||||||||
||69|||3|3|||||.49||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Yehui|||||||
|International|||||||
||8,547,279.|1,427,762||545,386.5|9,430,732||
|Co., Ltd.|||||||
||68|.45|1,077.00|0|.63||
||13,624,18|1,408,771|198,556.0|545,386.5|14,686,12||
|Subtotal|||||||
||3.15|.53|3|0|4.21||
||21,061,712.32|2,431,042|198,556.0|545,386.5|23,145,924.05|266,654.99|
|Total|||||||
|||.20|3|0|||

 4.Business income and Business cost
（1）Business income
||
|-|
|Amount of current period|
|59,936,965.65|
|4,536,386.18|
|64,473,351.83|
|7,797,417.08|
|4,536,386.16|
|12,333,803.24|

（2）Mainbusiness（Industry）
||||
|-|-|-|
|Amount of current period|||
|Business income|Business cost|Business income|
|59,936,965.65|7,797,417.08|58,390,060.58|
|59,936,965.65|7,797,417.08|58,390,060.58|

（3）Mainbusiness（Production）
||||
|-|-|-|
|Amount of current period|||
|Business income|Business cost|Business income|
|59,936,965.65|7,797,417.08|58,390,060.58|
|59,936,965.65|7,797,417.08|58,390,060.58|

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report（4）Mainbusiness（Area）
||||
|-|-|-|
|Amount of current period|||
|Business income|Business cost|Business income|
|59,936,965.65|7,797,417.08|58,390,060.58|
|59,936,965.65|7,797,417.08|58,390,060.58|

（5）Operating income from top five clients
||
|-|
|Business Income|
|26,979,808.44|
|1,778,880.00|
|1,680,000.00|
|1,110,014.77|
|890,400.00|
|32,439,103.21|

 5.Investment income
||
|-|
|Amount of currentperiod|
|8,048,378.51|
|2,431,042.20|
|427,368.86|
|3,030,660.52|
|44,345,614.09|
|58,283,064.18|

6. Supplement information of Cash Flow Statement
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||||
|-|-|-|-|-|-|
|Supplement information|||Amount of||Amount of|
||||current period||previous period|
||I. Adjusting net profit to cash flow from operating activities|||||
||Net profit|61,362,927.65||46,012,920.02||
||Add : Impairment loss provision of assets|14,939,945.14||-5,163,448.04||
||Depreciation of fixed assets, oil and gas assets and consumable biological|8,301,759.87||8,255,226.95||
||assets|||||
||Amortization of intangible assets||310,526.55||614,528.48|
||Amortization of long-term deferred expenses|||||
||Loss on disposals of fixed assets, intangible assets and other long-term|||||
||assets(“-“for gains)|||||
||Loss on discard of fixed assets||-222,212.70|||
||Loss on fair value changes|||||
||Financial expenses||-8,307,625.26||-1,392,989.91|
|Loss on investment||-58,283,064.18|||-22,062,282.2|
||||||8|
||Decrease of deferred income tax assets||352,502.39||1,653,775.47|
||Increase of deferred income tax assets||||-52,384,071.50|
||Decrease in inventories|||||
||Decrease of operating receivable||-4,280,901.95||-1,764,126.72|
||Increase of operating recivable||17,119,385.28||9,804,230.15|
||Other||||-3,897,638.73|
||Net cash flows arising from operating activities||31,293,242.79||-20,323,876.11|
||II. Significant investment and financing activities that without cash flows|||||
||Debt-to –capital conversion|||||
||Convertible loan due within 1 year|||||
||Fixed assets acquired under financial lease|||||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|Supplement information||Amount of|Amount of|
|||current period|previous period|
||3. Net Changes of cash and cash equivalents|||
||Ending balance of cash|271,582,749.03|457,379,886.16|
||Less: Beginning balance of cash|457,379,886.16|365,620,681.34|
||Add：End balance of cash equivalents|||
||Less: Beginning balance of cash equivalents|||
||Net increase of cash and cash equivalents|-185,797,137.13|91,759,204.82|

 XIV. Supplement information
1. Particulars about current non-recurring gains and loss
||||
|-|-|-|
|Items|Amount|Notes|
|Non-current asset disposal gain/loss|-25,108.97||
|Government subsidies recognized in current gain and|||
||21,420,940.38||
|loss(excluding those closely related to the Company’s|||
|business and granted under the state’s policies)|||
|Except for effective hedge business relevant to|||
|normal operation of the Company, gains and losses|||
|arising from fair value change of tradable financial|||
||88,006,690.51||
|assets and tradable financial liabilities, and|||
|investment income from disposal of tradable financial|||
|assets, tradable financial liabilities and financial|||
|assets available for sale|||
|Single impairment test for impairment of receivables|||
|transferred back to preparation|790,775.00||
|Other non-business income and expenditures other|||
||2,465,842.60||
|than the above|||
|Influenced amount of income tax|-11,902,114.51||
|Total|100,757,025.01||

Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report 2. Return on net asset and earnings per share
|||||
|-|-|-|-|
|||EPS||
|Profit as of reporting period|Weighted average ROE (%)|||
|||EPS-basic|EPS-diluted|
|Net profit attributable to the Common||0.02|0.02|
||0.39|||
|stock shareholders of Company.||||
|Net profit attributable to the Common||||
||-4.22|-0.18|-0.18|
|stock shareholders of Company after||||
|deducting of non-recurring gain/loss.||||

XI．Documents Available for Inspection
1.Financial statements bearing the seal and signature of legal representative, General Manaager and financial controller;
2.The original of theauditor’s report bearing the seal of the certified public accountants and the signature of C.P.A.
3.The originals of all theCompany’s documents and the original manuscripts of announcements publicly
disclosed on the newspapers designated by China Securities Regulatory Commission in the report period.
The above documents were completely placed at the Office of Secretaries of the Board of Directors of the Company.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
March 31, 2016