Shenzhen Textile (Holdings) Co., Ltd.
2013 Annual Report
March 29, 2014
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.
Except the following directors, all other directors have attended in person the board session for reviewing this report .
|||||
|-|-|-|-|
|||Reason for not attending||
|Name of absent director|Position of absent director||Attorney|
|||the board session in person||
|Wang Yongjian|Director|Work causes|Wang Bin|

The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Mr.Wang Bin, The Company leader, Mr. Zhu Jun, Chief financial officer and the Mr.Jiang Xiaojun, 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. This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall prevail.
Table of Contents
2013 Annual Report
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company
III. Summary of Accounting Highlights and Business Highlights
IV. Report of the Board of Directors
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Information about Directors, Supervisors and Senior Executives
VIII. Administrative structure
IX.Internal Control
X. Financial Report
XI. Documents available for inspection
Definition
||||
|-|-|-|
||Refers||
|Terms to be defined||Definition|
||to||
||Refers||
|Company/The Company/ Shen Textile||Shenzhen Textile (Holdings) Co., Ltd|
||to||
||Refers||
|Articles of Association||Articles of Association of Shenzhen Textile (Holdings) Co., Ltd|
||to||
|Actual controller / National Assets|||
||Refers|National Assets Regulatory Commission of Shenzhen|
|Regulatory Commission of Shenzhen|||
||to|Municipal People's Government|
|Municipal People's Government|||
|The Controlling shareholder/ Shenzhen|Refers||
|||Shenzhen Investment Holding Co., Ltd.|
|Investment Holding Co., Ltd.|to||
||Refers||
|Shenchao Technology||Shenzhen Shenchao Technology Investment Co., Ltd.|
||to||
||Refers||
|Shengbo Optoelectronic||Shenzhen Shengbo Optoelectronic Technology Co., Ltd.|
||to||
||Refers||
|CSOT||Shenzhen China Star Optoelectronic Technology Co., Ltd.|
||to||
||Refers||
|“CSRC”||China Securities Regulatory Commission|
||to||
||Refers||
|Company Law||Company Law of the People’s Republic of China|
||to||
||Refers||
|Securities Law||Securities Law of the People’s Republic of China|
||to||
||Refers||
|The Report||2013 Annual Report|
||to||

Major Risk Warning
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a substantial commitment for investors, investors should be cautious with investment risks .
II. Basic Information of the Company
1. Company Information
|||||
|-|-|-|-|
|||Stock code：||
|Stock abbreviation|Shen Textile A ,Shen Textile B||000045、200045|
|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|深纺织|||
|English name (If any)|SHENZHEN TEXTILE (HOLDINGS) CO.,LTD.|||
|English abbreviation (If||||
||STHC|||
|any)||||
|Legal Representative|Wang Bin|||
|Registered address|6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen|||
|Postal code of the||||
||518031|||
|Registered 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|||

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

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

4.Changes in Registration
|||||||
|-|-|-|-|-|-|
||||Number of|||
||Date of|Authority|Business License|Taxation|Organization|
||Registration|Registered with|of Enterprise as|Registration No.:|Code|
||||Legal Person|||
|||6/F, Shenfang||||
|||||DSDZ No.：||
|||Building, No.3||||
|||||44030419217374||
|||Huaqiang North|44030110503101|||
|Initial registration|A ugust 5, 1994|||9 GSDZ No.：|19217374-9|
|||Road, Futian|4|||
|||||44030119217374||
|||District,||||
|||||9||
|||Shenzhen||||
|||6/F, Shenfang||||
|||||DSDZ No.：||
|||Building, No.3||||
|Registration at the||||44030419217374||
|||Huaqiang North|44030110503101|||
|end of the|April 9, 2013|||9 GSDZ No.：|19217374-9|
|||Road, Futian|4|||
|reporting period||||44030119217374||
|||District,||||
|||||9||
|||Shenzhen||||
|||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 industry, textile||||
|Changes in principal business||equipment and accessories, instruments, standard parts, raw textile||||
|activities 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 Holding Co., Ltd. issued by State-owned Assets||||
|||Administration Committee of Shenzhen Municipal People's Government||||
|Changes is the controlling||(Shen Guo Zi Wei (2004) No. 223 Document), Shenzhen Investment||||
|shareholder in the past (is any)||Management Co., Ltd., the controlling shareholder of the Company, and||||
|||Shenzhen Construction Holding Company and Shenzhen Commerce and||||
|||Trade Holding Company merged into Shenzhen Investment Holding Co.,||||
|||Ltd.||||

5. Other Relevant Information
CPAs engaged
|||
|-|-|
|Name of the CPAs|Peking Certified Public Accountants（Special General Partnership）|
|Office address：||
||11/F, Zhongtang Building , No.110, Xizhimen Street , Beijing|
|Names of the Certified Public|Xiao Yi, Pan Zhongmin|

||
|-|
|Accountants as the signatiries|

The sponsor performing persistant supervision duties engaged by the Company in the reporting period.
√Applicable□ Not applicable
|||||
|-|-|-|-|
||||Period of supervision and|
|Sponsor name|Office address|Representatives||
||||guide|
||25/F, Tax-free Business|||
|Changjiang Financing|Building, No.6, Fuhua|||
|||Wang Qian, Su Jinhua|2013.3.26-2014.12.31|
|ServicesCo., Ltd.|No.1 Road, Futian|||
||District , Shenzhen|||

The Financial advisor performing persistant supervision duties engaged by the Company in the reporting period□Applicable√ Not applicable
III. Summary of Accounting Highlights and Business Highlights
I.Summary of accounting /Financial Data
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||
||2013|2012|year（％）|2011|
|Operating Gross income|1,131,098,580.37|845,114,483.38|||
||||33.84%|712,893,557.26|
|（RMB）|||||
|Net profit attributable to the|47,222,590.97|-80,988,887.59|||
|shareholders of the listed|||158.31%|48,915,594.47|
|company（RMB）|||||
|Net profit after deducting of|||||
|non-recurring gain/loss|||||
|attributable to the|-161,473,020.61|-90,003,071.80|-79.41%|28,195,007.31|
|shareholders of listed|||||
|company（RMB）|||||
|Cash flow generated by|-186,726,206.07|-155,151,561.96|||
|business operation, net|||-20.35%|27,750,962.45|
|（RMB）|||||
|Basic earning per|0.1|-0.24|||
||||141.67%|0.15|
|share(RMB/Share)|||||
|Diluted gains per|0.1|-0.24|||
|share(RMB/Share)(RMB/Sha|||141.67%|0.15|
|re)|||||
||||Increased by||
|Net asset earning ratio（%）|2.31%|-6.06%||3.6%|
||||8.37%||
||||Changed over last||
||End of 2013|End of 2012|year（％）|End of 2011|
|Gross assets（RMB）|2,851,759,735.91|1,880,660,667.21|51.64%|1,808,226,905.67|
|Shareholders’ equity|2,297,846,577.11|1,303,011,954.39|||
|attributable to shareholders of|||76.35%|1,369,628,593.61|
|the listed company（RMB）|||||

（II）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.
Unit:RMB
||||||
|-|-|-|-|-|
||Net profit attributable to the shareholders||Net Assets attributable to the||
||of the listed company||shareholders of the listed company||
||Amount in the|Amount in the|End of the reporting|Beginning of the|
||reporting period|previous period|period|reporting period|
|According to CAS|47,222,590.97|-80,988,887.59|2,297,846,577.11|1,303,011,954.39|
|Items and amount adjusted according to IAS|||||

2. Difference in Net profit and net Assets in the Financial Report as Disclosed Respectively according to the Accounting standards Outside Mainland China and the Chinese Accounting Standards.
Unit:RMB
||||||
|-|-|-|-|-|
||Net profit attributable to the shareholders||Net Assets attributable to the||
||of the listed company||shareholders of the listed company||
||Amount in the|Amount in the|End of the reporting|Beginning of the|
||reporting period|previous period|period|reporting period|
|According to CAS|47,222,590.97|-80,988,887.59|2,297,846,577.11|1,303,011,954.39|
|Items and amount adjusted according to IAS|||||

N/A
3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.
The financial reports prepared by the Company according to domestic and international accounting standards are consistent.
（III）Items and amount of deducted non-current gains and losses
Unit:RMB
|||||
|-|-|-|-|
|Items|Amount (2013)|Amount (2012)|Amount(2011)|
|Non-current asset disposal gain/loss(including|211,668,888.86|||
|the write-off part for which assets impairment||30,022.03|186,017.76|
|provision is made)||||
|Govemment subsidy recognized in currentgain|15,060,086.51|||
|and loss(excluding those closely related to the||||
|||11,526,881.62|13,258,252.62|
|Company’s business and granted under the||||
|state’s policies)||||
|Gain/loss from change of fair value of|45,135,723.11|||
|transactional financial asset and liabilities, and||||
|investment gains from disposal of transactional||||
|financial assets and liabilities and sellable||2,436,544.20|1,482,128.46|
|financial assets other than valid period value||||
|instruments related to the Company’s common||||
|businesses.||||
|Switch back of provision for depreciation of|93,971.83|||
|account receivable which was singly taken||||
|depreciation test.||||

|||||
|-|-|-|-|
|Other non-operating income and expenditure|4,327,035.16|||
|||-3,072,383.76|10,868,359.09|
|except for the aforementioned items||||
|Less: Amount of influence of income tax|67,590,093.89|1,906,879.88|5,074,170.77|
|Total|208,695,611.58|9,014,184.21|20,720,587.16|

 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
IV. Report of the Board of Directors
I. General
In 2013, with the efforts of the board of directors, managers and all staff, the company accomplished work target as scheduled. Firstly, the company has finished the fund-raising of non-public offering of stock, providing the financial support to the construction of the phase-II of TFT-LCD Polaroid Project. Secondly, fully developed Polaroid Project as the core of the leading industry, and promoted the production capacity of the first phase of Polaroid Project. Thirdly, realized the the integration and optimization of resources, and effectively disposed of the non-main business. Promote the strategic transformation of the company target, in the meantime, carry out steady operation, cost control, and working on the production and operation of the main business and expanding the market, finally realized harmonious development of steady operation and transformation and upgrading. Fourthly, promoted the construction of the second phase project, giving serious consideration to the development direction of the Polaroid new product and technology and planning the technical cooperation with theworld’s leading companies. During the reporting period, the company has realized the revenue of RMB 1131.0986 million ., increased by33.84% from the same period of last year. The main reason is the transfer of the held equity of Shenzhen Jinlan Decorative Articles Industrial Co., Ltd. and realized the available-for-sale financial assets, which result in investment income increased dramatically. The company has realized total profit of RMB 102.0185 million, increased by204.46% from the same period of last year, with a net profit of RMB 47.2226 million, increased by158.31% from the same period of last year.
II. Analysis on principal Business
1.General
(1)The main operation index in this report period.
|||||
|-|-|-|-|
|Items|2013|2012|Increase/Decrease(%)|
|Business income|1,131,098,580.37|845,114,483.38|33.84%|
|Business cost|1,087,938,001.98|809,070,880.87|34.47%|
|Sale Expenses|11,201,842.67|8,566,463.34|30.76%|
|Administration Expenses|143,098,049.02|124,751,094.63|14.71%|
|Including :R & D Investment|72,805,742.12|54,658,769.63|33.20%|
|Financial expenses|-27,343,517.20|-389,710.01|6916.38%|

|||||
|-|-|-|-|
|Cash flow generated by business operation,net|-186,726,206.07|-155,151,561.96|-20.35%|
|Net cash flow generated by investment|-25,761,481.51|-118,550,763.51|78.27%|
|Net cash flow generated by financing|929,754,452.50|37,758,754.20|2,362.35%|

（2）Analysis of the increase and decrease of the changes of the key indicators compared to the year-agodata： The operating income in current period increased by RMB 285.9841 million and33.84% year on year mainly due to the increase of sales of polarizer;
The operating cost in current period increased by RMB 278.8671 million and34.47% year on year mainly due to the increase of sales cost caused by the growth of polarizer business volume;
The sales Expenses in current period increased by RMB 2.6354 million and 30.76% year on Year mainly due to the expansion of customers and markets that leads to the increase of expense;
The financial expenses in current period decreased by RMB 26.9538 million and6916.38% year on year mainly due to the increase of bank deposits and interest of the structured deposits, the depreciation of Japanese Yen, the increase of exchange gains and additional Interest income from payable liabilities;
The net cash flows from investing activities Increased by78.27% year on year mainly due to the increase of cash received from the disposal of subsidiaries;
The net cash flows from financing activities increased by2362.35% mainly due to to Non-public issued sstock and fund-raisings.
Progress of development strategy and operation plans in this period that are disclosed by the company in the previous annual reports.
1. Integrate advantageous resource, fully develop polaroid project as the core of the leading industry
First of all, adjusted and enriched the management of Shengbo Optoelectronic, optimized the organizational structure. The company gave full support to Shengbo Optoelectronic , such as the manpower, material resources as well as financial support, and promote the production and operation of Shengbo Optoelectronic by integrating advantageous resources. Secondly, made the market-oriented development, strengthened communication with customers, adopted various business cooperation modes and promoted the mechanism of customers approval and products batch delivery. Within the year, TFT products has already been realized a patch supply to CSOT, IVO, CDY and JONHON, and significant results were achieved in products batch delivery to BOE and CEC-Panda. TN/STN products not only keep the revenue and profit as last year, but also develop small and medium-sized module market by taking advantage of the capacity of TFT production line, which obtained initial effect. At the same time, Shengbo Optoelectronic also intensified the development and market promotion of IPS products applied by smart phones. and has sent samples successively to clients, such as BYD, Tianma and TCL, etc, and supplied them with small batches. Thirdly, by employing external experts and improving independent research and innovative strength, the stability of production and the quality of products have been improved and the cost reduced. Fourthly, strengthen stable operation, on the other hand, take full advantage of the platform of Shengbo Optoelectronic the state high-tech enterprise to strive for the national, provincial and municipal support on favorable development policies. The total approved financial support of the year reached RMB 62.87 million.
2. Promote the phase-II construction of polaroid project
In 2013, in order to promote the phase-II construction of polaroid project, firstly, the company reviewed the work in line 4 of the first phase of polaroid project, based on the mode of “cooperative design, importing key mainframe devices and partial domestic processing”, the company had technical exchanges and business negotiations with 7 suppliers of the world and carried out comprehensive analysis and evaluation towards all the plans provided. Secondly, according to the frequent upgrade of terminal products in the flat panel industry, the company carefully evaluated the technical route of polaroid new product, and planned to adjust the product technical route of the second phase and the scheme of equipment selection to meet the demand of polaroid market in future and the requirement of low cost, high performance and thin type from clients. During the report period, the company negotiated continuously with Japanese company which has the world leading polaroid production technology andR&D strength, on the technology application, production, sale and other issues of polaroid. The company also did a lot of preparatory work on technology licensing, technical support and the cooperative production based on the technology, etc.
3. Intensify development of technology, accelerate product innovation.
The company had 10 scientific research and development projects throughout the year, including 6 projects of new product launch, technology innovation diffusion and market tracking(6 products), 2 projects of new product market tracking(2 products), 2 projects of technology innovation diffusion and product quality upgrading, as well as the deveolopment of ultrathin IPS-TFT polaroid and VA-pattened TV product. The company applied for 4 patents in 2013, including 3 utility models and 1 patent for invention. By the end of 2013, the company totally has 36 patents, including 4 patents for invention, 1 in PCT and 31 utility models, 1 in national standard and 2 in industrial standard.
4. Accomplished the fund-raising of non-public offering of stock in 2013
The company got the CSRC approval on January 4th, 2013, and issued 170,000,000 shares of RMB common stock(A shares) to 7 specific investors. The issue price per share is 5.83yuan, the placement net amount is RMB 961,751,000.85yuan. New issue listed on the Shenzhen Stock Exchange on March
26th,
2013. The company accomplished two fund-raisings of non-public offering of stock in the past three years, which provided fund guarantee for TFT-LCD project construction.
5. Withdraw from non core business orderly, support the transformation of the company
In order to support the development ofcompany’s main business polaroid, the company launched
disposition of equity of Union and Jinlan company. Union equitydidn’t receive the application from intent transferee after the deadline of listing transfer; Jinlan equity clinched a deal with RMB 220 million, which brought good revenue to the company.
6. Scientific planning, strengthen the building of talent team.
In 2013, the company did fully research and scientific plan, and human resource planning was finished initially; To meet the needs of strategic transformation, optimize human resource related system, extend recruitment channel, optimize recruitment strategy, attract large number of talents for company strategic transformation and enterprise development by extensive recruitment from campus and society; Adhere to goal orientation, accomplish the establishment of target incentive scheme of Shengbo Optoelectronic in 2014; Complete the core personnel security system, finish the design and report of long-term incentive scheme; Lay a solid foundation of human resource basic work and compile the human resource profile information in system.
7. Intensify detailed management, constantly improve the management level
First of all, optimized thecompany’s organizational structure, on the premise of headquarter function intensification, the company strengthened the management on Shengbo Optoelectronic and supported Shengbo Optoelectronic operation from financial and personnel aspects; Secondly, learn management from clients and peers to force the improvement of management level. Thirdly, optimized and improved basic management by means of ERP system, which realized the transition from traditional management to modern management; Fourthly, with a view to specifics and internal aspect, improved the executive ability.
8. Attach great importance to safety, ensure safe and stable production environment
In 2013, the company optimized safety production management system, increased 5 safe production systems, organized several safe production inspection which effectively solved many problems such as incomplete rectification, with the rectification rate raised to95%. The potential safety hazard checking work was strengthened in the company subordinate enterprises and realized the goal of safe production throughout the year.
Reasons for difference of actual operation performance has20% lower or higher than profit forecast of the Year disclosed
□Applicable√ Not applicable
2. Revenue
Notes:
During the report period, the company realized the revenue in manufacturing industry of RMB 469.8356 million, increased by 53.2% from the same period of last year. The main reason is that the phase-I of TFT-LCD polaroid in subsidiary company Shengbo Optoelectronic was put into operation and the sale of polaroid increased by 65.9% from the same period of last year, which realized a trade income of RMB 570.3387 million, increased by26.28% from the same period of last year, mainly due to the increase sale of polaroid of the sub-subsidiary Shengtou Investment (Hong Kong) Co., Ltd.; Which realized the revenue in Property Management Of RMB 86.3105 million ,increased by5.45% from the same period of last year, mainly due to the property management optimization services and the increase of rent price.
Is the income from sales in kind greater than the service income?
√Yes □No
||||||
|-|-|-|-|-|
|Classification|Items|2013|2012|Increase/Decrased(%)|
|Polarizer sheet|Sales|491.91|196.9|149.83%|
|（0000’square|Production|523.46|205.2|155.1%|
|meters）|Inventory|61.45|29.9|105.52%|

 Explanation for a year-on–year change of over30%
√Applicable□ Not applicable
The phase-I project of TFT-LCD polaroid put into operation lead to the large increase on polaroid production and sales and inventory from the same period of last year.
Significant orders in hand
□Applicable√ Not applicable
Significant change in or adjustment of the products or services in the reporting period:
□Applicable√ Not applicable
Main customers
|||
|-|-|
|Total sales amount to top 5 customeers (RMB)|732,561,626.44|
|Proportion of sales to top 5 customers in the||
||64.76%|
|annual sales(%)||

Information of theCompany’s top 5 customers
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|No|Name|Amount of sales|Proportion(%)|
||Shenzhen Chuangying Textile Co.,|||
|1||408,378,030.99|36.1%|
||Ltd.|||
|2|Shenzhen CSOT|224,447,786.39|19.84%|
||Shenzhen Fuhaipeng Electronic|||
|3||37,403,805.21|3.31%|
||Technology Co., Ltd.|||
||Shenchao Optoelectronic (Shenzhen)|||
|4||34,485,118.15|3.05%|
||Co., Ltd.|||
||Kunshan Longteng Optoelectronic|||
|5||27,846,885.70|2.46%|
||Co., Ltd.|||
|Total|--|732,561,626.44|64.76%|

 3.Costs
Classification of sectors
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|||2013||2012|||
|Classification of|||Proportion in||Proportion in|Increase/Decrease|
||Items||||||
|sectors||Amount|operation|Amount|operation costs|(%)|
||||costs(%)||(%)||
|Domestic and|Polarizer sheet,||||||
|||565,812,030.98|52.23%|448,904,371.85|55.83%|26.04%|
|foreign trade|Textile||||||
||Polarizer sheet,||||||
|Manufacturing||494,063,237.14|45.61%|331,474,025.69|41.22%|49.05%|
||Knitted clothing||||||
|Lease and|||||||
|Management of||23,448,861.58|2.16%|23,745,635.87|2.95%|1.25%|
|Property|||||||
|Total||1,083,324,129.70|100%|804,124,033.41|100%|34.72%|

 Classification of products
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|||2013||2012|||
|Classification of|||||||
||||Proportion in||Proportion in|Increase/Decrease|
|products|Items||||||
|||Amount|operation|Amount|operation|(%)|
||||costs(%)||costs(%)||
|Management of|||||||
|||23,448,861.58|2.16%|23,745,635.87|2.95%|1.25%|
|Property|||||||
|Textile||26,674,471.14|2.46%|34,007,671.05|4.23%|-21.56%|
|Polarizer sheet||625,366,491.80|57.73%|297,466,354.64|36.99%|110.23%|
|Trade||407,834,305.18|37.65%|448,904,371.85|55.83%|-9.15%|
|Total||1,083,324,129.70|100%|804,124,033.41|100%|34.72%|

 Notes:
The operating cost in current period increased by RMB 278.8671 million and34.47% year on year mainly due to the increase of sales cost caused by the growth of polarizer business volume;
Main suppliers of the Company
|||
|-|-|
|Total purchase amount from top five suppliers||
||515,365,591.67|
|(RMB)||
|Proportion in total annual purchase amount for||
||44.22%|
|top five suppliers (%)||

Information about the top 5 suppliers
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|||Amount of purchase||
|No|Name||Proportion(%)|
|||(RMB)||
|1|Lite Optoelectronic Co., Ltd.|240,455,974.24|20.63%|
||Fujifilm (China) Investment Co.,|||
|2||106,753,948.43|9.16%|
||Ltd|||
||Jiangyin Hupao Textile Printing &|||
|3||65,656,120.00|5.63%|
||dyeing Co., Ltd.|||
|4|Shandong Weilian Printing & dyeing|57,162,626.00|4.91%|

|||||
|-|-|-|-|
||Co., Ltd.|||
||Jiangyin Kangyuan Printing &|||
|5||45,336,923.00|3.89%|
||dyeing Co., Ltd.|||
|Total|--|515,365,591.67|44.22%|

 4.Expenses
(1)The sales Expenses in current period increased by RMB 2.6354 million and 30.76 year on Year mainly due to the expansion of customers and markets that leads to the increase of expense;
(2)The financial expenses in current period decreased by RMB 26.9538 million and6916.38% year on year mainly due to the increase of bank deposits and interest of the structured deposits, the depreciation of Japanese Yen, the increase of exchange gains and additional Interest income from payable liabilities;
（3）The Income tax expenses in current period increased by RMB 71.4665 million and428.70% year on year mainly due to temporary differences of current taxable and the increase of taxable income.
5.R& D Expenses
In 2013, thecompany’s research input was RMB 72.80 million, increased by 133.19% compared with the input in 2012, which accounts for12.22% of the polaroid operating income in 2013. The company research and development focus on products development, such as TV polaroid products, brightening intelligent terminal polaroid, high-contrast negativity LCD polaroid, gray tone dye film, bistable state LCD reflecting and brightening polaroid, and also include production related technical improvement and raw material application, such as the new type of surface coating and PVA adhesives. The internal optics and reliability test of ultrathin brightening intelligent terminal polaroid( IPS products) have been finished, with the samples delivered to BYD, TMB and TCL and other clients for approval. By optical verification from clients, some specific aspects such as the agglutinant and appearance still need to be improved, however, there have already been small batch orders from low and medium terminal clients.
The company strengthened research and development on new material and new manufacturing technique. Supported with the development of new surface coating applied by full lamination TP(touch panel) and high PPI(resolution), all in-plant technological development work have been accomplished, besides, formal model manufacture and in-plant evaluation will also be finished by the end of 2013. Its estimated that new model will be lunched for client evaluation in the first quarter of 2014; Go with the development of small and medium size TFT
new PSA agglutinant, which has been accomplished the in-plant verification and pilot production, and will be
verified and promoted cooperatively with clients.It’s estimated that new agglutinant with the structure of“IPS
Panel+ Oncell TP”(IPS board+ touch panel) will be launched in the first quarter of 2014.
6.Cash Flow
Unit:RMB
|||||
|-|-|-|-|
|Items|2013|2012|Increase/Decrease(%)|
|Subtotal of cash in-flow|1,241,358,168.08|833,131,986.01||
||||49%|
|from operation activity||||
|Subtotal of cash out-flow|1,428,084,374.15|988,283,547.97||
||||44.5%|
|from operation activity||||
|Net cash flow from|-186,726,206.07|-155,151,561.96||
||||-20.35%|
|operation activity||||
|Subtotal of cash in-flow|531,997,920.35|9,438,265.34||
||||5,536.61%|
|from||||
|Subtotal of cash out-flow|557,759,401.86|127,989,028.85||
||||335.79%|
|from investment activity||||
|Net cash flow from|-25,761,481.51|-118,550,763.51||
||||78.27%|
|investment activity||||
|Subtotal of cash in-flow|1,038,476,930.08|40,153,434.48||
||||2,486.27%|
|from financing activity||||
|Subtotal of cash out-flow|108,722,477.58|2,394,680.28||
||||4,440.17%|
|from financial activity||||
|Net cash flow from|929,754,452.50|37,758,754.20||
||||2,362.35%|
|financing activity||||
|Net increased amount of|716,724,197.25|-236,627,888.36||
||||402.89%|
|cash and cash equivalent||||

Notes to the year-on-year change of the relevant data by over30%
√Applicable□Not applicable
（1）Subtotal of cash in-flow from operation activity in current period increased by RMB 408.2262 million and49% year on year mainly due to the the increase of sales of polarizer;
（2）Subtotal of cash out-flow from operation activity in current period increased by RMB 439.8008 million and 44.5% year on year mainly due to the increase of cash paid for the purchase of raw materials and other products for polarizer;
（3）Subtotal of cash in-flow from financing activity in current period increased by RMB 522.5597 million and5536.61% year on year mainly due to the increase of structured deposits and interest income;
（4）Subtotal of cash out-flow from financial activity incurrent period increased by RMB 429.7704 million and335.79% year on year mainly due to the increase of investment in structured deposits;
（5）Net cash flow from investment activity in current period increased by RMB 92.7893 million and78.27%
year on year mainly due to the increase of cash received from the disposal of subsidiaries;
（6）Subtotal of cash in-flow from financing activity in current period increased by RMB 998.3235 million and24.8627% mainly because the Company privately issued 170,000,000 ordinary RMB shares (par value per share: RMB 1.00) and raised net proceeds of RMB 961,751,000.85 according to the Approval of Private Issue of Shares by Shenzhen Textile (Holding) Co., Ltd. (CSRC Permit (2013) No. 2 Document) issued by China Securities Regulatory Commission;
（7）Subtotal of cash out-flow from financial activity increased by RMB 106.3278 million and4,440.17% year on year Mainly due to the increase of cash paid for the debt;
（8）Net cash flow from financing activity in current period increased by RMB 891.9957 million and2,362.35% year on year mainly due to Non-public issued stock and fund-raisings.
Notes to the big difference between cash flow from operating activities and net profit in the reporting year√Applicable□Not applicable
During the reporting period, the cash flow ofcompany’s business has significant difference with thisyear’s net profit. The main reason is thatcompany’s profits mainly come from the equity transfer of Shenzhen Jinlan Decorative Articles Industrial Co., Ltd.and the investment income of selling available-for-sale financial assets, and the cash flow was generated by investment.
III. Composition of principal businesses
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||||||Increase/decrea|Increase/decrea|
|||||Increase/decrea|||
||||||se of rincipal|se of gross|
|||||se of reverue in|||
||||||business cost|profit rate over|
||Operating||Gross profit|the same|||
|||operating costs|||over the same|the same|
||revenue||rate(%)|period of the|||
||||||period of|period of the|
|||||previous|||
||||||previous year|previous year|
|||||year(%)|||
||||||(%)|(%)|
|Industry|||||||
|Domestic and|570,338,653.9|565,812,030.9|||||
||||0.79%|26.28%|26.04%|31.29%|
|foreign trade|0|8|||||
||469,835,596.3|494,063,237.1|||||
|Manufacturing|||-5.16%|53.2%|49.05%|-36.22%|
||7|4|||||
|Lease and|||||||
|Management|86,310,457.79|23,448,861.58|72.83%|5.45%|-1.25%|2.6%|
|of Property|||||||
|Product|||||||
|I ncome from|||||||
|Lease and|||||||
||86,310,457.79|23,448,861.58|72.83%|5.45%|-1.25%|2.6%|
|Management|||||||
|of Property|||||||
|Income from|||||||
||33,825,534.08|26,674,471.14|21.14%|-22.89%|-21.56%|-5.92%|
|textile|||||||

||||||||
|-|-|-|-|-|-|-|
|Income from|595,898,549.9|625,366,491.8|||||
||||-4.95%|126.74%|110.23%|-62.49%|
|Polarizer sheet|8|0|||||
|Income from|410,450,166.2|407,834,305.1|||||
||||0.64%|-9.12%|-9.15%|5.42%|
|Trading|1|8|||||
|Area|||||||
||350,662,919.7|278,950,805.7|||||
|Domestic|||20.45%|29.42%|40.88%|-24.03%|
||1|0|||||
||775,821,788.3|804,373,324.0|||||
|Overseas|||-3.68%|36.3%|32.71%|-43.23%|
||5|0|||||

Under the circumstance that the statistic specifications for theCompany’s principal business data experienced adjustrment in the reporting period, the principal business data upon adjustment of the statistic specifications at the end of the reporting period in the latest year.
□Applicable√ Not applicable
IV. Analysis on Assets and Liabilities
1.Significant Change in assets
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||End of 2013||End of 2012||Proportion||
|||Proportion||Proportion in|increase/d||
|||||||Notes to the significant change|
||Amount|in the total|Amount|the total|ecrease||
|||assets(%)||assets(%)|(%)||
||949,317,213.07||232,417,736.06|||Mainly because the Company|
|||||||privately issued RMB ordinary shares|
|||||||according to the Approval of Private|
|||||||Issue of Shares of Shenzhen Textile|
|Monetary|||||||
|||33.29%||12.36%|20.93%|(Holding) Co., Ltd. (Zheng Jian|
|fund|||||||
|||||||Permit [2013] No. 2 Document)|
|||||||issued by China Securities Regulatory|
|||||||Commission and the funds thus raised|
|||||||have not been completely used.|
|Accounts|138,422,205.01||100,941,342.96||||
|||4.85%||5.37%|-0.52%||
|receivable|||||||
||203,810,815.20||143,258,151.49||||
|Inventories||7.15%||7.62%|-0.47%||
||147,480,587.85||154,761,895.71|||If the total assets from raised funds in|
|Investment||||||the period has substantial growth, the|
|based real||5.17%||8.23%|-3.06%|assets excepts the monetary fund asset|
|estate||||||s took the portion of total assets decre|
|||||||ased.|

||||||||
|-|-|-|-|-|-|-|
|Long-term|48,715,143.22||48,094,489.26||||
|equity||1.71%||2.56%|-0.85%||
|investment|||||||
||878,246,098.01||949,164,677.21|||If the total assets from raised funds in|
|||||||the period has substantial growth, the|
|Fixed assets||30.8%||50.47%|-19.67%|assets excepts the monetary fund asset|
|||||||s took the portion of total assets decre|
|||||||ased.|
||62,917,215.99||11,576,523.39|||Mainly because to invested in the|
|Constructio|||||||
|n-in||2.21%||0.62%|1.59%|phase-II project of polarizer for|
|-process||||||TFT-LCD.|

2.Significant Change in Liabilities
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||2013||2012||Proporti||
||||||on||
|||Proportion||Proportion|||
||||||increase|Notes to the significant change|
||Amount|in the total|Amount|in the total|||
||||||/decreas||
|||assets (%)||assets (%)|||
||||||e(%)||
||0||40,153,434.48|||Mainly due to|
|Short-term|||||||
|||0||2.14%|-2.14%|the repayment for the working capi|
|borrowing|||||||
|||||||tal loan|
||200,000,000.00||200,000,000.00|||If the total assets from raised funds|
|||||||in the period has substantial growth|
|Long-term|||||||
|||7.01%||10.63%|-3.62%|, the assets excepts the monetary fu|
|borrowings|||||||
|||||||nd assets took the portion of total a|
|||||||ssets decreased.|

3.Assets and liabilities Measured with Fair value
Unit:RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Gain/loss on|Cumulative|||||
||Amount atyearbeginning|||Impairment|Purchased|Sold amount||
|||fair value|fair value||||Amount at|
|||||provisions in|amount in|in the||
|Item||change in the|change|||||
|||||the reporting|the reporting|reporting|year end|
|||reporting|recorded into|||||
|||||period|period|period||
|||period|equity|||||
|Financial||||||||
|assets||||||||
|3.|70,159,993.69||31,379,697.72|2,947,341.67|||41,829,021.22|
|Avaliable-for||||||||
|-sale||||||||
|financial||||||||

||||||
|-|-|-|-|-|
|assets|||||
|Subtotal of|70,159,993.69|31,379,697.72|2,947,341.67|41,829,021.22|
|financial|||||
|assets|||||
||70,159,993.69|31,379,697.72|2,947,341.67|41,829,021.22|
|Total|||||
|Financial|0.00|||0.00|
|Liability|||||

Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes√ No
V. Analysis on core Competitiveness
1. The company is an experienced management team and technical staff team with strong technology, long-term cooperation and international views, and has accumulated the management experience in brand, technology, operations and other advantages in the field of polarizer film in the domestic market. Also, the company has the unique sets of proprietary technology for all the products combined with the technology features of thecompany’s devices.
||
|-|
|2. The company has the special technology of polarizer film production and the independent intellectual property|
|of various new products for meeting the customers’ demand. Now, By the end of 2013, the company totally has|
|36 patents, including 4 patents for invention, 1 PCT and 31 utility models, 1 in national standard and 2 in|
|industrial standard. The research and development center of Shengbo Optoelectronic won the honorary title of|
|Shenzhen “ Worker Vanguard”, gained the privilege of direct supporting service for Shenzhen large enterpirses|
|approved by Shenzhen Technology Innovation Commission; listed by Shenzhen Customs as Customer|
|Coordinator Enterprise and AA level Customs Supervision Enterprise.|

3. The company owns the laboratory and municipalR&D center of polarizer material and technical engineering in Shenzhen, and has a dedicatedR&D team and equipment in the development and industrialization of core production technology in LCD polarizer film, in the development and industrialization of new products for OLED polarizer film and in the nationalization of raw materials in polarizer sheet Based on the all-round cooperation on the aspects of industry, academia and research, the company ensures to have a sustained and rapid innovative capacity in the research and development, in order to adapt to the rapid updating characteristics of polarizer industry and meet the demands of large-scale development of the company. In 2013, the company accomplished the extension project of research and development center construction, which was introduced an extended test line
and a coating test line, and provided a good platform for the research and development of new products, new
techniques and pilot technologies.
4.The company has favorable targeting market and client groups domestic and overseas. Compared with advanced competitors from abroad, the greatest advantages of the company lie in localized facility, closing to the panel plant market and strong support from the favorable national policies. On market development, the company adopted a “prescription manner” for client development strategy targeting at TN/STN market, developed one-to-one supporting services, jointly developing personalized products, shortening delivery time, offering fast and high-qualified after-sales service and providing the competitive and high cost-effective products for clients; On TFT main panel market, the company focus on exploiting new customer market, introducing new products, developing new usage of the products jointly with clients and establishing market quick response mechanism by the way of establishing business locations to improve customer satisfaction, meanwhile, fully developed small and medium module factory market in order to improve the utilization rate of TFT production line and products and the market share.
5. On technical promotion, in order to catch up with advanced oversea competitors as soon as possible, the company made a framework cooperation agreement with first-rate polaroid manufacturer from abroad, cooperating on the licensing of technology, technical support and products production based on this technology, etc. The systemic technology and management level will be improved vigorously to satisfy the requirement of TFT market to thin type, low cost and narrow bezel of polaroid.
6. Shengbo Optoelectronic enjoys the preferential tax policies of the new display devices industry and has the exemption from import tariff policy on import of production materials not produced domestically for self-use. So, the production costs have been further reduced and the product competitiveness has been improved.
VI. Analysis on investment Status
1. External Equity investment
（1）External investment
N/A
（2）Holding of the equipty in financial enterprises
N/A
（3）Investment in Securities
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Security|Security|Short|Initial|Number|Shareho|Number|Shareho|Book|Gain.los|Account|Sauce|
|category|code|form of|investm|of|lding|of|lding|balance|s of the|ing|of the|

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||security|ent|shares|proporti|shares|proporti|at the|reportin|items|shares|
||||cost(RM|held at|on at the|held at|on at the|end of|g period|||
||||B)|the|beginnin|the end|end of|the|(RMB)|||
|||||beginnin|g of the|of the|the|reportin||||
|||||g of the|reportin|reportin|reportin|g period||||
|||||reportin|g|g period|g|(RMB)||||
|||||g|period(|(shares)|period(|||||
|||||period(s|%)||%)|||||
|||||hares)||||||||
|||||||||||Financial||
|||ST victor|11,356,63|||||35,835,76|45,135,72|assets|Legal|
|Stock|000018|||9,233,394|5.64%|3,744,594|2.21%|||||
|||onward|8.86|||||4.58|3.11|available|shares|
|||||||||||for sale||
|||||||||||Financial||
||||||||||||Debt|
||||9,847,598|||||5,993,256||assets||
|Stock|000030|Fawer||985,733|0.34%|985,733|0.34%||0||restructur|
||||.31|||||.64||available||
||||||||||||ing|
|||||||||||for sale||
||||21,204,23|10,219,12||||41,829,02|45,135,72|||
|Total|||||--|4,730,327|--|||--|--|
||||7.17|7||||1.22|3.11|||
|Disclosure date for the notice ofapproval by the Board (If any)|||January 22, 2013|||||||||
||||July 17, 2013|||||||||
|Disclosure date for the notice ofapproval by shareholders’Meeting (If any)||||||||||||
||||Augut 17, 2013|||||||||

Notes to holding of the equity in other listed companies
□ Applicable√ Not applicable
2.Entrusted Financing , investment in derivative products and entrusted loan
（1）Entrusted Financing
N/A
（2）Investment in dervatives
N/A
（3）Entrusted loan
N/A
3.Application of the Raised capital
（1）General application of the raised capital
Unit:RMB’0000
|||
|-|-|
|Total amount of the raised capital|96,175.1|
|Total raised capital invested in the report period|1,548.48|
|Total accumulative raised capital invested|1,548.48|
|Amount of raised capital of which the purpose||
||0|
|was changed in the report period||
|Accumulative amount of raised capital of||
||0|
|which the purpose has been changed||
|Proportion of raised capital of which the||
||0%|
|purpose has been changed (%)||
|Notes to use of raised capital||
|In 2013, the fund-raising that the company used for investing the phase-I project of TFT-LCD Polaroid reached||
|RMB 6.619 million; The fund raised for investing the phase-II project of TFT-LCD polaroid reaches RMB||
|15.4848 million. By December 31st , 2013, the fund raised for the phase-I project were fully applied , which had||
|no balance in the fund-raising account, and the account was closed. The balance of fund-raising for the phase-II||
|project is RMB 555.5938 million (this balance including interest income RMB 9.3276 million), among which,||
|the balance of the company account was RMB 202.8765 million, the balance of Shengbo Optoelectronic account||
|is RMB 352.7173 million. The raised idle funds replenished to the working fund is RMB 300 million. The raised||
|idle funds for structured deposits is RMB 100 million.||
|For more detailed information, please refer to the Company's Special Report on Deposit and Actual Condition of||
|Raised Proceeds in 2013 published on www.cninfo.com.cn on March 29, 2014.||

（2）Promised projects of raised capital
Unit:RMB’0000
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||Accumu||Date||||
|||||||Investm|||||
||||||lated||when||||
|||||||ent|||||
|||Total|||amount||the|||Has any|
||Project|||||progress|||||
|||raised|Total|Amount|invested||project|Benefit|Has the|material|
||changed|||||ended|||||
|Committed||capital|investm|inested|at the||has|realized|predicte|change|
||(includi|||||the|||||
|investment projects||invested|ent after|in the|end of||reached|in the|d result|taken|
||ng|||||reportin|||||
|and investment||as|adjustm|reportin|the||the|reportin|be|place in|
||partial|||||g|||||
|||commit|ent (1)|g period|reportin||predicte|g period|realized|feasibili|
||change)|||||period(|||||
|||ed|||g||d|||ty|
|||||||%)(3)=(|||||
||||||period(2||applicab||||
|||||||2)(1)|||||
||||||)||le status||||
|Committed investment projects|||||||||||
|Phase-II|No|96,175.|96,175.|1,548.4|1,548.4|1.61%|Decemb|0|No|No|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|project of||1|1|8|8||er 31,||||
|polarizer sheet for|||||||2014||||
|TFT-LCD|||||||||||
|Subtotal of|||||||||||
|||96,175.|96,175.|1,548.4|1,548.4||||||
|committeed|--|||||--|--|0|--|--|
|||1|1|8|8||||||
|investment projects|||||||||||
|Investment orientation for und arising out of plan|||||||||||
|||96,175.|96,175.|1,548.4|1,548.4||||||
|Total|--|||||--|--|0|--|--|
|||1|1|8|8||||||
|Situation about not|||||||||||
|coming up to|||||||||||
|schemed progress|||||||||||
||Not applicable||||||||||
|or expected revenue|||||||||||
|and the reason ( in|||||||||||
|specific project0|||||||||||
|Notes to significant|||||||||||
|change in feasibility|Not applicable||||||||||
|of the project|||||||||||
|Amount,|||||||||||
|application and|||||||||||
|application progress|Not applicable||||||||||
|of the unbooked|||||||||||
|proceeds|||||||||||
|About the change of|||||||||||
|the implementation|||||||||||
|site of the projects|Not applicable||||||||||
|invested with the|||||||||||
|proceeds|||||||||||
|Adjustment of the|||||||||||
|implementation|||||||||||
|way of investment|Not applicable||||||||||
|funded by raised|||||||||||
|capital|||||||||||
|About the initial|||||||||||
|investment in the|||||||||||
|projects planned to|||||||||||
||Not applicable||||||||||
|be invested with the|||||||||||
|proceeds and the|||||||||||
|replacement|||||||||||
|Using the idle|Applicable||||||||||
|proceeds to|On March 28, 2013, the 32nd meeting of the fifth board of directors examined and adoptedthe Proposal for Supplementing Working Capital with Part of Idle Raised Proceeds. The||||||||||
|supplement the|||||||||||
|working capital on|||||||||||
|temporary basis|||||||||||

|||
|-|-|
||amount of temporarily idle raised-fund of the phase-II project which were replenished tothe working fund is RMB 300 million. This proposal was examined and approved by 2012shareholders' general meeting on April 22, 2013. with an usage period from April 22nd,2013 to April 21st, 2014.|
|Balance of the||
|proceeds in process||
|of project|Not applicable|
|implementation and||
|the cause||
|About application||
||As of December 31, 2013,，The balance amount of fundraising special account is RMB|
|and status of the||
||555.5938 million, It will be fully used in committed investment project.|
|proceeds unused||
|Problems existing||
|in application of the||
|proceeds and the||
||Non -existent|
|information||
|disclosure or other||
|issues||

（3）Change of the Projects invested with the Raised Capital
Not applicable
4.Analysis on principal subsidiaries and Mutual Shareholding Companies
Particulars about the principal subsidiaries and Mutual shareholding companies
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Leading|||||||
|||Sectors|||Total|||Operating||
|Company|Company||products|Registered||Net assets|Tumover||Net Profit|
|||engaged|||assets(RM|||profit||
|Name|type||and|capital||(RMB)|(RMB)||(RMB)|
|||in|||B)|||(RMB)||
||||services|||||||
||||Domestic|||||||
|Shenzhen||||||||||
||||Trade,|||||||
|Lisi||||2,360,000.|21,838,60|16,579,80|5,729,675.|3,606,484.|3,175,674.|
||Subsidiary|Lease|Property|||||||
|Industrial||||00|8.61|6.84|38|30|62|
||||managem|||||||
|Co., Ltd.||||||||||
||||ent|||||||
||||Accommo|||||||
|Shenzhen||||||||||
|||Hotel|dation,|10,005,30|24,637,99|19,186,63|9,877,190.|4,252,933.|3,467,267.|
|Huaqiang|Subsidiary|||||||||
|||services|business|0.00|1.61|5.11|73|35|14|
|Hotel||||||||||
||||center;|||||||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Shenfang||||||||||
|Property||Property|Property|||||||
|||||1,600,000.|8,632,140.|1,931,874.|10,242,20|310,087.2|197,418.1|
|Managem|Subsidiary|managem|managem|||||||
|||||00|19|00|4.05|7|1|
|ent Co.,||ent|ent|||||||
|Ltd.||||||||||
||||Production of|||||||
|Shenzhen||||||||||
||||fully|||||||
|Beauty||||||||||
|||Textile|electronic|25,000,00|48,326,24|34,451,87|36,986,96|||
|Century|Subsidiary|||||||28,548.03|20,755.99|
|||industry|jacquard|0.00|6.19|8.14|0.42|||
|Garment||||||||||
||||knitting whole|||||||
|Co., Ltd.||||||||||
||||shape|||||||
|Shenzhen||||||||||
||||Operating|||||||
|Shenfang||||||||||
|||Textile|import and|5,000,000.|54,930,72|12,708,61|410,450,1|1,731,055.|1,406,712.|
|Import &|Subsidiary|||||||||
|||trade|export|00|4.03|4.27|66.21|38|89|
|export||||||||||
||||business|||||||
|Co., Ltd.||||||||||
|Shenzhen||||||||||
|Shengbo||||||||||
||||Production|||||||
|Opotoelec||Flat||300,000,0|1,950,281,|1,500,472,|598,268,6|-192,126,|-165,467,|
||Subsidiary||and sales of|||||||
|tric||display||00.00|047.95|390.50|19.17|188.72|697.60|
||||polarizer|||||||
|Technolog||||||||||
|y Co., Ltd||||||||||
|Shengtou||||||||||
|||Flat|Sales of|HKD10,0|40,848,46|-137,592.|166,279,1|1,979,526.|1,840,666.|
|（HK）Co.,|Subsidiary|||||||||
|||display|polarizer|00.00|2.11|62|16.68|17|74|
|Ltd.||||||||||

Particulars about the principal subsidiaries and Mutual holding companies
Acquirement and disposal of subsidiaries in the Reporting period
√Applicable□Not applicable
|||||
|-|-|-|-|
||The purpose of acquiring|The pattern of acquiring||
||||The effect on whole|
||and disposal of subsidiary|and disposal of subsidiary||
|Name|||production and|
||companies during the|companies during the||
||||performance|
||reporting period|reporting period||
||Optimize and integrate|||
||resources, dispose the|||
|Shenhen Jinlan Decorative|||Obtain the equity|
||non-main business,|||
|supplies Industrial Co.,||Publicly listed|investment income RMB|
||promote the strategic|||
|Ltd.|||206,908,753.38 .|
||transformation of the|||
||company|||

5.Projects invested with the non-raised capital
N/A
VII. Prediction of business performance for January -March 2014.
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason.
√Applicable□Not applicable
Forenotice of earning : The sharp decline.
Type of data filet for the prediction :Interval
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Same period|||||
||Year beginning to end of|||of the|||||
||||||Increase or decrease（%）||||
||next report period|||previous|||||
|||||year|||||
|Estimatedamount of|||||||||
|accumulative net profit|-1,500|--|-1,100|-483.77|Decrease|-210.06%|--|-127.38%|
|（RMB’0000）|||||||||
|Basic earnings per shares|||||||||
||-0.03|--|-0.02|-0.01|Decrease|-200%|--|-100%|
|（RMB/share）|||||||||
||The company of the expected a loss of about RMB 11 million- RMB||||||||
|Notes to forenctice of|15 million in first quarter, mainly due to the innadequate utilization rate resulted from||||||||
|earnings|the decrease of the orders of subsidiary Shengbo Opotoelectric||||||||
||orders, unable to burden the fixed cost.||||||||

VIII.Special purpose principal under the control of the Company
N/A.
IX. Development prospect
(1) Development trend of the industry
According to the prediction of DISPLAY SEARCH, the worldwide display industry will develop steadily in 2014, and it is estimated a growth of about6%. The flat panel display industry in China will maintain rapid growth due to the extension of domestic panel production capacity and rapid expansion of downstream intelligent terminal. So far, China has become the largest display terminal producing and consumption country in the world and also leap into the front ranks of the world in the output of various electronic terminal products. By 2013, China has built 5 production lines of advanced lines TFT-LCD(sixth generation and above) and 7 advanced lines are under construction.It’s estimated that in 2014, two lines of generation 8.5 will be put into mass production in
China, which will lead to rapid growth of panel supply capacity in our country, and hopefully we will occupy
about20% of the world market in future with international competitiveness improved significantly. Multiple
advanced lines put into operation promoted the development of upstream material and devices, facilitating the localization process of various supporting industries including that of polaroid, which make a breakthrough of panel display supporting industry in China. By rough estimates according to the data above, the polaroid quantity demand for domestic panel board will be 120 million square meters, which need the capacity of 6 or 7 TFT-LCD wide polaroid production lines for support. . With more rational layout in polaroid industry, the whole business circumstance of the company will be improved as well.
(2) Development trend of the industry
The company will unswervingly carry out the transformation strategy of developing polaroid industry as the leading industry. The primary mission are developing new technology and new product, accelerating introducing and training high-qualifiedR&D talents, strengthening internal management level, improving technical level, and develop exchanges and cooperation with world-class polaroid production enterprises to promote the construction of polaroid project.
The company will take full advantage of superior resources, strengthen the efforts to reform and innovation, establish long-term incentive mechanism, improve overall profitability in order to maintain the leading role in domestic polaroid industry.
(3) Possible Risks Faced
Although the global economy recovery will proceed in 2014, panel industry may have constructional over capacity with the buildup and production of multiple panel production lines of advanced generations. In order to lower the cost, the panel manufacturers at home or aboard or other enterprises of the same industry, integrated the upstream industrial chain. Being as one of the important component of panel, polaroid industry will also become the primary target of the investment and integration. Thus, market competition will become more fierce, and the request for the performance and quality of the products will be higher, which lead to a price drop.
||
|-|
|Therefore, the company will adhere to the strategy of “Being innovative, technological leading,|
|professional, and unique”, rely on research and development center, tamp the technology foundation, strengthen|
|systematic management level, improve the competitiveness by differentiated products and service to occupy the|
|market share and achieve better economic benefits. The company will focus on the integration of internal|
|resources; try to build a good reputation and brand image in market and among clients with our own professional|
|research achievements. Our goal is to become a healthy and benign development high-tech enterprise.|

(4)The key emphasis in 2014
The company will adhere to the operation principle of “innovation is the motivation of enterprise
development”, follow the operating strategy of “market oriented, technology leading, prudent operation,
strengthen management and promote efficiency”, focus on market demand, meanwhile, increase the input of research and development innovation, tamp the technology foundation, improve the operation management level, enhance cost management, intensify sustainable development capacity and create a new core competence. The key emphasis are as follows:
1. Put polaroid business at the first place, try to solve technical problems with various measures, improve the product yield, reduce the loss, seize market share to create benefits. The company will make full use of research and development center, take advantage of the function of new devices to explore new product and provide strong technical support to key project.
2. Intensify non-business strategic development, improve the overall economic benefits and to accumulate energy for the development of polaroid industry.
3. Focus on the key issues, key link and key time-point of the phase-II of polaroid project, make detailed plans, refine work task, shorten construction cycle and strictly control investment budget to realize the scale efficiency of polaroid industry early.
4. Attach much attention to the optimization of personnel management, accelerating the introduction of technical talents, intensifying the team building of core talents, creating scientific talent evaluation and promotion system, and try to create a good environment that everybody can fully display their talent.
5. Fully implement the mechanism of safe production responsibility , ensure that there are awareness, mechanism, responsibility and measures on safe production, so as to guarantee the harmonious and stable
development of the company. .
6.Develop the establishment of enterprise culture and care about the thoughts of employees, strengthen the cohesive force in enterprise and realize the harmonious and scientific development of enterprise.
X. Explanation of the Board of Directions Concerning the “ non-standard audit report” issued by the CPAs firm for the reporting period.
Not
applicable。
XI.. Explain change of the accounting policy, accounting estinate and measurement methods as compared with the financial reporting of last year.
During the reporting period, the company's accounting policies, accounting estimates and
accounting methods were not changed.
XII. Explain retrospective restatement due to correction of significant accounting errors in the reporting period. During the reporting period, the company does not have significant accounting errors occurred.
XIII. Explain change of the consolidation scope as compared with the financial reporting of last year.
The scope of consolidation of the company's financial statements did not change compared with the previous year's financial report.
The company signed “The Contract of transferring State-owned Property Rights in Enterprise” with
Shenzhen Herun Jewelry Co., Ltd. The company auctioned100% equity of Shenzhen Jinlan Decorative Articles Industrial Co., Ltd.(Jinlan for short) with the price of RMB 220,000,000.00 transferred to Shenzhen Herun Jewelry Co., Ltd. In December, 2013, the company had received55% of the transfer section, that is RMB 121,000,000.00 , and finished the related property rights transfer procedures as well as the reelection of board of directors of Goldland. Thus, the 2013 annual profit statement and cash flow statement of Goldland have been listed within combined financial statement, however, the balance sheet on December
31st,
2013 was excluded the combination.
XIII. Dividend DistributionPreparation
Implementation or adjustment of theCompany’s profit Distribution policy, Especially Cash Dividend Distribution Policy in the Reporting Period.
√Applicable□Not applicable
The company always appreciates the retribution to investors, and carry out profit distribution policy strictly followed the Reguations. According to “Notice on Further Implementing the Relevant Issues on Cash Dividends of Listed Corporation” by China Securities Regulatory Commission and relevant regulation documents by Shenzhen Securities Regulatory Bureau, in order to enhance the transparency ofcompany’s cash dividend, improve the cash dividend performance, intensify the retribution awareness to shareholder, the company, according to actual situations, and the suggestions and opinions from shareholders and independent directors, carried out specific research and review on the retribution to shareholder issue, clarifycompany’s profit distribution policy and made the “Planning of shareholder retribution(2012-2014)”. This plan was discussed and passed in the twelfth meeting of the fifth board of directors on June
18th,
2012. In the meantime, the company revised the profit distribution policy in the original Regulations, andit’s discussed and passed in the second temporary general meeting of shareholders of 2012 on July
12th,
2012. During the reporting period, audited by Peking Certified Public Accountants Co., Ltd, the company realized net profit -80,988,887.59 yuan in 2012 which
belongs to parent company. According to the Regulaitons, profit distribution and capital reserve into equityhaven’t been implemented in 2012. Undistributed profit of the very year should be replenished to working fund as needed. The formulation and execution ofcompany’s cash dividend policy conform to the Regulations, in which, the standards and proportion of dividends are explicit, relevant decision-making process and mechanism are complete, and independent directors played their due role, minority shareholders expressed their views and demands through general meeting of stockholders, incoming telegrams and visit, etc. The legal interests of minority shareholders are full protected. The company strictly complied with and carried out the profit distribution policy according to the Regulations, and disclosed the reasons of no dividend and the usage of undistributed profit in the periodic report. In future, the company will execute cash dividend policy strictly in line with the Regulations, and better fulfill the responsibilities and obligations of the listed company.
|||
|-|-|
|Special cash dividend policy description||
|Whether meets the requirements of the||
|provisions of the articles of association or|Yes|
|shareholders' meeting resolutions::||
|Whether dividends standard and proportion are||
||Yes|
|clear||
|Whether decision making and supervision||
||Yes|
|mechanism for profit distribution are completed||
|Whether independent directors perform their||
||Yes|
|duties responsibly and play its due role:||
|Whether the Minority shareholders have||
|adequate opportunity to express their views and||
||Yes|
|aspirations and Their legitimate rights and||
|interests have been fully protected||
|Whether the Cash dividend policy to adjust or||
|change the conditions and procedures are|Yes|
|compliant and transparent||

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):
（1）Year 2011
The company realized net profit RMB 48,915,594.47 which belongs to parent company, The Company is to allocate10% of net profit for the parent company(RMB 18,262,631.16), ie ., RMB 1,826,263.12 , For the needs of construction of the Phase-I project of polarizer sheet for TFT-LCD,company’s not planning to allocate the other undistributed profits achieved in 2011 or shifting the capital accumulation funds to increased capital stock, the undistributed profit will be used to supplement working capital needed by the company for business development（2）Year 2012
The company realized net profit RMB-80,988,887.59 which belongs to parent company, The Company is to allocate10% of net profit for the parent company(6,949,532.71), ie ,RMB694,953.27 , For the needs of construction of TFT-LCD polarizing sheet Project, thecompany’s not planning to allocate the other undistributed
profits achieved in 2012 or shifting the capital accumulation funds to increased capital stock.
（3）Year 2013
The company realized net profit RMB 47,222,590.97 in 2013 which belongs to parent company, withdrew10% legal accumulation fund 23,194,075.61yuan from the net margin 231,940,756.06 yuan of parent company. As the company was involved in the construction of the phase-II renovation project of TFT-LCD& AMOLED polaroid(6# production line), additional capital needs to be replenished bythe company equity fund. company ys not planning to allocate the other undistributed profits achieved in 2013 or shifting the capital accumulation funds to increased capital stock.
Dividend distribution of the latest three years
Unit： RMB
|||||
|-|-|-|-|
|||Net profit attributable to|Ratio in net profit|
|||the over of the parent|attributable to the parent|
||Cash dividend (Including|||
|Year||company in the|company in the|
||Tax)|||
|||consolidated financial|consolidated financial|
|||statements|statements|
|2013|0.00|47,222,590.97|0%|
|2012|0.00|-80,988,887.59|0%|
|2011|0.00|48,915,594.47|0%|

 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
|||
|-|-|
|The reason why cash dividend distribution plan has not||
|been come up as it proceeded while the undistributed||
||The usage and plan of company’s undistributed profit|
|profit of parent company was positive during the||
|reporting period.||
|As the company was involved in the construction of the||
|phase-II renovation project of TFT-LCD & AMOLED|The construction of the phase-II renovation project of|
|polaroid(6# production line),additional capital need to|TFT-LCD & AMOLED polaroid(6# production line)|
|be replenished by equity fund||

XV.Profit distribution and plan of capitalization from capital public reserve
|||
|-|-|
|A total number of shares as the distribution||
||506,521,849|
|basis（Shares）||
|Total cash dividend（Yuan）（Tax-included）|0.00|
|Profit dividend (Yuan)|124,997,823.59|
|Proportion of cash dividend in the||
||0%|
|distributable profit（％）||
|Cash dividend distribution policy||
|Other||
|Details of profit distribution or reserve capitalization plan||
|Audited by Peking Certified Public Accountants (special general partnership), the company realized net profit||
|RMB 47,222,590.97, net profit RMB 47,222,590.97 in 2013 which belongs to parent company, the parent||
|company net profit are RMB 231,940,756.06 . It is planned to withdrew 10% legal accumulation fund RMB||

||
|-|
|23,194,075.61yuan from the net margin RMB 231,940,756.06 of parent company according to the Regulations|
|of the company. As the company was involved in the construction of the phase-II renovation project of|
|TFT-LCD & AMOLED polaroid (6# production line), additional capital needs to be replenished by the company|
|equity fund. Company’s not planning to allocate the other undistributed profits achieved in 2013 or shifting the|
|capital accumulation funds to increased capital stock. This proposal shall be submitted to the shareholder|
|meeting of 2013 for examination.|

XVI. Social responsibility
(1). The protection ofshareholder’s rights and interests
The company conform to laws and regulations, listing rules of stock andcompany’s Regulations strictly, improve the organizational structure and operating mechanism ofcompany’s internal management, adhere to the decision-making, supervision and operation system whoes main structure are the general meeting of shareholders, board of directors, board of supervisors and the management, refine rules of procedure of the governance structure, clarify the responsibilities and authorities on many aspects, such as decision, execution and supervision, which formed the scientific and effective responsibility assignment and balance mechanism. Improve the internal control system which covers the whole management process of the company, take a serious of effective operational risk prevention measures to intensify the supervision and management mechanism of company on the aspects of property, investment, personnel and operation performance. It protectedshareholders’ rights and interests, tamped foundation ofcompany’s healthy and sustainable development.
The board of directors will increase the transparency of information; do well on the work of the investor protection and propaganda. The company will make full use of the platforms, such as phone calls, emails and company websites, especially theinvestors’ interaction platform of Shenzhen Stock Exchange, and solveinvestors’ problems timely, interact with medium and small investors. Meanwhile, in order to enhance allparties’ understanding of the company and improve the transparency of listed company, encourage investors to visit the site of business, production and operation of the company, and have a face-to-face talk with the core management, which can inspect thecompany’s current operation state. Thus, the investors would have a more intuitive and comprehensive understanding of the company, on the other hand, it also helps the company to build the sense of responsibility of retribution to the investors, and improve the management standard of the company as well. (2) The protection of legal right of staff
The company has always regarded the staff as the source of a corporate wealth, adhered to the management idea of “Unity, Vitality, and Entrepreneurship”, and established a comprehensive system of human resource
management and performance assessment. Also, the company has strictly observed the “Labor Law” and other
relevant labor laws and regulations, formally signed the “Labor Contract” with the employees, sufficiently paid all
the statutory social insurance and welfare for every employee who has labor relationship established with the company, fully respected and guaranteed all the legal rights for the employees, and set up the harmonious and stable labor relations with the employees. While well conduct the production operation, the company strives to provide the fine environment of working and living and the broad development platform for staff, and facilitates the realization of value and the promotion of capacity for employees, in order to achieve the common development of enterprise and staff.
During the reporting period, the company has attached great importance to the safety of production,
strengthened the implementation of troubleshooting, supervision and rectification through the continuous
improvement of system construction and control system, intensified the emergency drill and the safety training, promoted the basic safety management, and effectively guaranteed the safety and occupational health of
employees. At the same time, the company has the continuous and steady promotion of overall safety operation situation, andhasn’t the serious accidents of safety operation.
In order to further promote the construction of enterprise culture, the company has established the “Talent Training Camp for Construction of Enterprise Culture”, hired the professional teachers to train the employees in the aspects of theory of enterprise culture, development background and current situation of the company, idea system of the company, behavior norms, cases of excellent enterprise culture at home and abroad, etc., and gained the fine effectiveness. Moreover, the employees have improved their sense of awareness and identity to the company after training, and strongly improved the implementation of culture construction.
(3) The protection of environment
The company has always implemented the sustainable development strategy of the environmental protection, performed the responsibility of environmental conservation, and strived to create the modern “Green Enterprise”. In the operation of production, the company has strictly abided by National and Local laws and regulations related to the protection of environment, implemented the high standard of environmental protection, focused on the energy conservation, eliminated the waste of resources, emphasized the ecological protection, and put the idea of environmental protection into all the aspects of production and life. Meanwhile, the company has greatly advocated the green office and developed various propaganda and education activities of the environmental protection, in order to improve theemployees’ awareness of energy conservation and emission reduction and achieve the coordinative development of production management and environmental protection.
(4) The protection of consumer rights and interests
The company has complied with the business strategy of “Innovational, Professional, Leading, and Long-term”, focused on the customers, continually increased the investment in Research and Development, and enhanced the quality improvement, in order to offer the satisfying and high-quality of products to the customers. For the achievement of business idea of “Integrity and Win-Win”, the company has established the fine post-service system, and promoted the establishment of long-term cooperation partnership on the basis of the effective guarantee of customers andconsumers’ rights.
Whether the listed company and its subsidiaries belong to the heavy polluting industries regulated by the state environmental protection department.
□ Yes√ No□ Not applicable
Whether the listed company and its subsidiary exist the major social security issues.
□ Yes√ No□ Not applicable
Whether has been punished during the report period.
□ Yes√ No□ Not applicable
XVII. Statement of such activities as reception, research, communication, interview in the reporting period
|||||||
|-|-|-|-|-|-|
|||||Vistors|Discussion topics and|
|Reception time|Reception place|Way of reception|Types of visitors|||
|||||rece3ived|provision of materials|
|||||Fortune SG ,||
||The meeting|||Nuoan Fund,||
||||||The production of phas|
|January 15,|Room|Onsite||Boshi Fund,||
||||Organization||e-I project of polarizer s|
|2013|Of Shengbo|investigatio||Huaxia Fund||
||||||heet for TFT-LCD|
||Company|||and Pingan||
|||||Securities||
||The meeting||||The production of phas|
|January 16,||Onsite||Guosen||
||room of the||Organization||e-I project of polarizer s|
|2013||investigatio||Securities||
||company||||heet for TFT-LCD|
|||||China||
|||||InvestmentSec||
|||||urities, Central||
|||||China|The situation of the co|
|||||Securities,|mpany and|
||The meeting|||||
|January 18,||Onsite||Guosen|the production of phase|
||room of the||Organization|||
|2013||investigatio||Securities,|-I project of polarizer s|
||company|||||
|||||Gangfa|heet for TFT-LCD|
|||||Securities,||
|||||Shenzhen Taihe||
|||||Kunde||
|||||Investment Co.,||

|||||||
|-|-|-|-|-|-|
|||||Ltd., Shenzhen||
|||||Yintai||
|||||Investment Co.,||
|||||Ltd.||
||The meeting|||Jiangxi Ruitou|The production of phas|
|February 20,||Onsite||||
||room of the||Organization|Investment|e-I project of polarizer s|
|2013||investigatio||||
||company|||Company|heet for TFT-LCD|
||||||The production of phas|
||The meeting|||ICBCCS, CCB||
|February 26,||Onsite|||e-I project of polarizer s|
||room of the||Organization|Fund, Taida||
|2013||investigatio|||heet for TFT-LCD|
||company|||Hongli Fund||
||The meeting||||Production and manage|
|||Onsite||Individual||
|April 22, 2013|room of the||Individual||ment company|
|||investigatio||Investor||
||company|||||
|||||4 parties||
|||||including||
||||||Production and manage|
|||||Minsheng||
||||||ment company and the|
||The meeting Room|||Tonghui ,||
|||Onsite|||status of construction of|
|July 17, 2013|Of Shengbo||Organization|AEGON-INDU||
|||investigatio|||the project of polarizer|
||Company|||STRIAL Fund,||
||||||sheet for TFT-LCD|
|||||Shenzhen||
|||||Pingshi||
|||||Investment||
|||||3 parties|Production and manage|
|||||including|ment company and the|
||The meeting Room|||||
|||Onsite||Guangfa|status of construction of|
|July 18, 2013|Of Shengbo||Organization|||
|||investigatio||Securities and|the project of polarizer|
||Company|||||
|||||The first venture|sheet for TFT-LCD|
|||||securities||
|||||2 parties|Production and manage|
|||||including|ment company and the|
||The meeting Room|||||
|September 6,||Onsite||Jinghui|status of construction of|
||Of Shengbo||Organization|||
|2013||investigatio||Investment and|the project of polarizer|
||Company|||||
|||||Dacheng Fund|sheet for TFT-LCD|
|||||5 parties|Production and manage|
|||||including|ment company and the|
||The meeting Room|||||
|September 12,||Onsite||Jiangsu|status of construction of|
||Of Shengbo||Organization|||
|2013||investigatio||Ruihua and|the project of polarizer|
||Company|||||
|||||Jingzhonghe|sheet for TFT-LCD|
|||||Investment||

V. Important Events
I. Major lawsuits and Arbitration affairs
□Applicable√ Not applicable
In the reporting year, the Company had never been involved in any material lawsuit or arbitration.
II. Query form media
□Applicable√ Not applicable
In the reporting year, the Company had no query from media
III.Non—operation oriented Fund Occupancy by the Controlling Shareholder and/ or Related Parties
Unit:RMB’0000
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Amount at|||||||
|||||Amount|Total|Amount at||||
|Name of|||the||||||Preditecte|
|||||increased|repaid in|the end of||||
|sharehold|||beginning||||Predicted|Predicted|d|
||Occupanc|||in the|the|the||||
|er or||Cause|of the||||way of|amount to|repayment|
||y time|||reporting|reporting|reporting||||
|related|||reporting||||repayment|be repaid|time|
|||||period(R|period|period(R||||
|parties|||period(R||||||(month)|
|||||MB )|(RMB)|MB )||||
||||MB)|||||||
|Total|||0|0|0|0|--|0|--|
|Ratio of total value at period-end||||||||||
|in latest period’s net assets that|||0%|||||||
|audited (%)||||||||||

III. Events of Bankruptcy
N/A
IV. Bankruptcy or Reorganization Related Events
N/A
V. Assets Transactions
1. Acquisition of Assets
N/A
2. Sales of Assets
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Net||||||||||
|||||profit||||||||||
|||||contrib||||||||||
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||||||||Pricing|||||||
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||||Transa||||princip|||||||
|party||||beginn|arising|the||related|other|the|/debt|Disclo|Disclo|
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|of the||||ing of|from|asset||transac|party|assets|involv|sure|sure|
||sold|sale|price||||the|||||||
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||||||on||||||||n|
||||||busine||||||||“Anno|
||Shenzh|||||||||||||
||||||ss||||||||uncem|
||en|||||||||||||
||||||contin||||||||ent of|
|Shenzh|Jinlan|||||||||||||
||||||uity||||||||the|
|en|Decora|||||||||||||
|||Decem|||and||Market|||||Decem|propos|
|Herun|tive|||||438.16||||||||
|||ber 11,|22,000|449.4|manag||Princip|No|No|No|Yes|ber 12,|a l for|
|Jewelr|Article|||||%||||||||
|||2003|||ement||le|||||2013|transfe|
|y Co.,|s|||||||||||||
||||||stabilit||||||||rring|
|Ltd.|Industr|||||||||||||
||||||y, have||||||||100%|
||ial Co.,|||||||||||||
||||||a||||||||equity|
||Ltd.|||||||||||||
||||||signifi||||||||of|
||||||cant||||||||Shenzh|
||||||effect||||||||en|
||||||on||||||||Jinlan|
||||||current||||||||Decora|
||||||profits||||||||tive|

||
|-|
|Suppli|
|es|
|Industr|
|ial|
|Co.,Lt|
|d”|
|（ 201|
|3-58）|

 3. Enterprise Consolidation
Not applicable
VI. Implementation of theCompany’s quity Incentive plan and its influences
Not applicable
VII. Material related transactions
1. Related transactions in connection with daily operation
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Principl||Amount|Proporti|||||
||||Descript|e of||of the|on in the|||||
||||||Price of|||||||
|||Type of|ion of|picing||related|amount|Mode of||||
|Related|Relation||||related||||Market|Disclosu|Disclosu|
|||related|related|of the||transacti|of the|settleme||||
|parties|ship||||transacti||||price|re date|re index|
|||parties|transacti|related||on|similar|nt||||
||||||ons|||||||
||||ons|transacti||(RMB’0|transacti|||||
|||||on||000)|on (%)|||||
||The|||||||||||
||||||||||||Announ|
||Chairma|||||||||||
||||||||||||cement|
||n of the|||||||||||
||||||||||||of|
||parent|||||||||||
||||||||||||estimati|
||compan|||||||||||
||||||||||||on of|
||y for the|||||||||||
|||Sale|||||||||daily|
||period|||||||||||
|||products|Sales of|Market|||||||related|
|Shenzhe|from||||Agreem|22,444.7||Transfer||January||
|||to|polarizer|Principl|||37.67%||||transacti|
|nCSOT|January||||ent price|8||accounts||22, 2013||
|||related|sheet|e|||||||ons in|
||to|||||||||||
|||parties|||||||||2013|
||Septemb|||||||||||
||||||||||||(Annou|
||er was|||||||||||
||||||||||||ncement|
||Vice|||||||||||
||||||||||||No.|
||Chairma|||||||||||
||||||||||||2013-05|
||n of the|||||||||||
||||||||||||)|
||compan|||||||||||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||y|||||||||
|||||22,444.7||||||
|Total||--|--||--|--|--|--|--|
|||||8||||||
|Details of Major sold-out order sent||||||||||
|||N/A||||||||
|back||||||||||
|||Shenzhen CSOT, one of the major manufacturers for the downstream||||||||
|||products of TFT-LCD, is a national leading enterprise of “Special||||||||
|||Innovation and Development of New Display Industry”, and has||||||||
|||vigorously promoted the domestic support for the flat panel display||||||||
|||materials since 2012. The polaroid is one of the key components of LCD||||||||
|||panels. For supporting the domestic panel industry chain, the state and||||||||
|||local governments have continued to launch policy, such as tax reduction,||||||||
|||special funds and other supports to support local panel enterprises. The||||||||
|Necessity and continuity of related||||||||||
|||policy is effective in promoting domestic panel enterprises to actively seek||||||||
|transaction, and reasons of||||||||||
|transaction with related parties (but||domestic polaroid enterprises for cooperation and replacement of import.||||||||
|not with other dealers in market)||||||||||
|||While Shengbo Ophotoelectric owns the leading development, production||||||||
|||and supply capacity in domestic polaroid, and has the advantages of||||||||
|||geography, cost and price compared with the foreign mainstream polaroid||||||||
|||suppliers (especially the polaroid manufacturers built in the panel||||||||
|||factories). The company has finished Line 4 of Project I of the polaroid||||||||
|||with TFT-LCD in the climbing period, achieved the full mass production||||||||
|||with the comprehensive passed yield beyond 85%, and ensured the batch||||||||
|||supply for Huaxing Electric.||||||||
|Affected on independent of listed||The supply of products by Shengbo Optoelectronic to Shenzhen CSOT||||||||
|companyfrom related transaction||will not affect the independence of the Company.||||||||
|||Nevertheless, the company doesn’t have dependence on Shenzhen CSOT||||||||
|||for the polaroid business. Currently, Shengbo Ophotoelectric has become||||||||
|Dependence severity with related||||||||||
|party andrelevant||the qualified supplier for Shenzhen CSOT , Ultra-Deep Optical, BOE,||||||||
|countermeasures(if any)||||||||||
|||IVO, CPT and other customers. Also, the company shall reasonably||||||||
|||arrange the production to achieve the delivery as per the requirements of||||||||

|||
|-|-|
||different product specifications and models for the customers.|
||The meeting Examined and adopted the estimation of daily related|
|For those predicted daily related|transactions of the 30th meeting of the fifth board of directors，Shenzhen|
|transaction by category, actual|Shengbo Optoelectronic Technology Co., Ltd. a wholly-owned subsidiary|
|implementation in reporting|of the Company, sells polarizer products to Shenzhen CSOT . The total|
|period(if any)|sales amount for 2013 is expected to be no more than RMB 400 million.|
||The proposal was approved by shareholder meeting of 2012.|
|Reason of major difference between||
||Not applicable|
|trading price and market reference||
|pricde||

2. Related transactions conceming assets acquisition/sales
N/A
3. Important related transitions with joint investment
N/A
4.Current Associated rights of credit and liabilities
Did there exist any non-operational related rights of credit and liabilities
vYes□ No
|||||||||
|-|-|-|-|-|-|-|-|
||||||Balance at|||
|||||Whether|||Balance at|
||||||the|Amount in||
|||Type of||there is the|||the end of|
||Association||Reason for||beginning|this||
|Associated party||claims and||use of|||period|
||relationship||formation||of period|period(RM||
|||debts||non-operati|||(RMB’0000|
||||||(RMB’0000|B’0000)||
|||||ng capitals|||)|
||||||)|||
||The|||||||
||Chairman of|||||||
||the parent|||||||
||company|||||||
||for the|||||||
|||Related||||||
||period from||Sale|||||
|ShenzhenCSOT||party debt||No|4,727.35|-391.57|4,335.78|
||January to||products|||||
|||receivable||||||
||September|||||||
||was Vice|||||||
||Chairman of|||||||
||the|||||||
||company|||||||
|Shenzhen Tianma|The director|Related|Sale|||||
|||||No|123.44|-34.65|88.79|
|Microelectronics|and general|party debt|products|||||

|||||||||
|-|-|-|-|-|-|-|-|
|Co., Ltd.|manager of|receivable||||||
||the|||||||
||Company|||||||
||was|||||||
||Managing|||||||
||Director of|||||||
||the|||||||
||company.|||||||
|Shenzhen Dailishi||Related||||||
||Sharing|||||||
|Underwear Co.,||party debt|Contract fee|No|26.55|-0.91|25.64|
||company|||||||
|Ltd.||receivable||||||
|||Related||||||
|Anhui Huapeng|Sharing|||||||
|||party debt|Contract fee|No|180||180|
|Textile Co., Ltd.|company|||||||
|||receivable||||||
|||Related||||||
|Shenzhen Xinfang Knitting|Sharing||Current a|||||
|||party debt||No|21.68||21.68|
|Co., Ltd.|company||mount|||||
|||payable||||||
|Shenzhen||Related||||||
||Sharing||Current a|||||
|Xiangjiang Trade||party debt||No|38|-34|4|
||company||mount|||||
|Co., Ltd||payable||||||
|Shenzhen||||||||
|||Related||||||
|Changlianfa|Sharing||Current a|||||
|||party debt||No|72.72|-4.24|68.48|
|Printing & dyeing|company||mount|||||
|||payable||||||
|Co., Ltd.||||||||
|Shenhen||||||||
|||Related||||||
|Hengsheng|Sharing||Current a|||||
|||party debt||No|136.79||136.79|
|Investment|company||mount|||||
|||payable||||||
|Company||||||||
|Shenzhen Haohao||Related||||||
||Sharing||Current a|||||
|Property Leasing||party debt||No|352.89|-17.5|335.39|
||company||mount|||||
|Co., Ltd||payable||||||
|Shenzhen||||||||
|Shenchao|Controlled|Related||||||
||||Loan|||||
|Technology|by the same|party debt||No|1,504.87|892.22|2,397.09|
||||interest|||||
|Investment Co.,|party|payable||||||
|Ltd.||||||||

5.Other material related transactions
N/A
Relevant inquity with the internet website for disclosing provisional report on material related transactions
||||
|-|-|-|
|Description of provisional|Date of disclosing provisional|Description of the website for|
|announcement|announcement|disclosing provisional announcements|
|Announcement of estimation of daily|January 22, 2013 (|http://www.cninfo.com.cn)|

||
|-|
|related transactions in 2013|

VIII. Important contracts and implementation
1. Trust, contracting and lease
（1）Trust
Explanation on trust
In reporting period, the Company has no othercompany’s assets entrusted by the Company or assets of the Company trusted from other company.
Projects that have brought about gains/losses to the company taking over10% of theCompany’s total profit in the reporting period.
□Applicable√ Not applicable
（2）Contract
Explanation on contract
In reporting period, the Company has no assets contract to other company or contracting othercompany’s assets. Projects that have brought about gains/losses to the Company taking over10% of theCompany’s total profit in the reporting period
□Applicable√ Not applicable
（3）Leasing
Explanation on leasing
In reporting period, the Company has no Major leasing to other company or Leasing othercompany’s assets. Projects that have brought about gains/losses to the company taking over10% of theCompany’s total profit in the reporting period
□Applicable√ Not applicable
2.Guarantees
Unit:RMB’0000
||||||||||
|-|-|-|-|-|-|-|-|-|
|External Guarantee (Exclude controlled subsidiaries)|||||||||
||Relevant|||||||Guarant|
||||Date of||||Complet||
||disclosure|||||||ee|
|||Amount|happening|Actual|||e||
|Name of the|date/No.||||Guarantee|Guarantee||for|
|||of|(Date of|mount of|||impleme||
|Company|of||||type|term||associat|
|||Guarantee|signing|guarantee|||ntation||
||the|||||||ed|
||||agreement)||||or not||
||guarantee|||||||parties|

||||||||||
|-|-|-|-|-|-|-|-|-|
||d|||||||(Yes or|
||amount|||||||no)|
|Guarantee of the Company for the controlling subsidiaries|||||||||
||Relevant|||||||Guarant|
||disclosure||||||Complet|ee|
||||Date of||||||
||date/No.||||||e|for|
|Name of the||Amount|happening|Actual|||||
||of||||Guarantee|Guarantee|impleme|associat|
|Company||of|(Date o|mount of|||||
||the||||type|term|ntation|ed|
|guaranteed||guarantee|signing|guarantee|||||
||guarantee||||||or|parties|
||||agreement)||||||
||d||||||not|(Yes or|
||amount|||||||no)|
|Shenzhen||||||||Yes|
|Shengbo|||||The joint||||
||June 16,||October||||||
|Optoelectronic||11,500||0|liability|12 months|Yes||
||2012||23,2012||||||
|Technology Co.,|||||guaranty||||
|Ltd.|||||||||
|Shenzhen||||||||Yes|
|Shengbo|||||The joint||||
||June 19,||August||||||
|Optoelectronic||20,000||0|liability|12 months|Yes||
||2012||27, 2012||||||
|Technology Co.,|||||guaranty||||
|Ltd.|||||||||
|Total of Company’s guarantee（namely total of the large two aforementioned）|||||||||
|Including：|||||||||

（1）Outward guarantee against law
N/A
3.Other important contracts
N/A
4. Other important transaction
N/A
IX. Implementation of Commitments
1. The commitments of the Company and its shareholders holding over5% of theCompany’s total shares in the report year of extending to the report year from previous year.
|||||||
|-|-|-|-|-|-|
||||Time of|||
||Commitment|||Peiod of||
|Commitment||Contents|making||Fulfillment|
||maker|||commitment||
||||commitment|||

||||||
|-|-|-|-|-|
|Commitment onshare reform||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|||
||Shenzhen||||
|||shares they hold reaches 5% within|||
||Investment||Sustained and|Under|
|||6 months after the first decrease,|||
||Holdings Co.,||effective|Fulfillment|
|||they will disclose an announcement|||
||Ltd.||||
|||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.|||
|Commitmentsin initial publicoffering orrefinancing||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|||
||Shenzhen||||
|||owned subsidiary, subsidiaries under|||
||Investment||Sustained and|Under|
|||control or any other companies that|||
||Holdings Co.,||effective|Fulfillment|
|||have actual control of it shall not be|||
||Ltd.||||
|||involved in the business the same as|||
|||or similar to those Shenzhen Textile|||
|||currently or will run in the future, or|||
|||any businesses or activities that may|||
|||constitute direct or indirect|||
|||competition with Shenzhen Textile;|||
|||if the operations of Shenzhen|||
|||Investment Holdings Co., Ltd. and|||
|||its wholly owned subsidiaries,|||

||
|-|
|subsidiaries under control or other|
|companies that have actual control|
|of it compete with Shenzhen Textile|
|in the same industry or contradict|
|the interest of the issuer in the|
|future, Shenzhen Investment|
|Holdings Co., Ltd. shall urge such|
|companies to sell the equity, assets|
|or business to Shenzhen Textile or a|
|third party; when the horizontal|
|competition may occur due to the|
|business expansion concurrently|
|necessary for Shenzhen Investment|
|Holdings Co., Ltd. and its wholly|
|owned subsidiaries, subsidiaries|
|under control or other companies|
|that have actual control of it and|
|Shenzhen Textile, Shenzhen Textile|
|shall have priority. The|
|commitments 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 directly and|
|indirectly on behalf of any person,|
|company or unit to engage in the|
|same or similar business in any|
|districts in the future by the form of|
|share-holding, equity participation,|
|joint venture, cooperation,|
|partnership, contract, lease, etc., and|
|ensure not to use the controlling|
|shareholder's status to damage the|
|legitimate rights and interests of|
|Shenzhen Textile and other|
|shareholders, or to gain the|

|||||||
|-|-|-|-|-|-|
|||additional benefits. 3. If there will||||
|||be the situation of inter-industry||||
|||competition with Shenzhen Textile||||
|||for Shenzhen Investment Holdings||||
|||and its share-holding subsidiaries or||||
|||other enterprises owned the actual||||
|||control rights in the future,||||
|||Shenzhen Investment Holdings will||||
|||promote the related enterprises to||||
|||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||||
|||Refer to the Announcement of||12 months||
||Shenzhen|Approval of Application for Private||from the listing||
||Investment|Issue of Shares that issued by the|March 25,|day of new|Under|
||Holdings Co.,|Board of Directors of Shenzhen|2013|shares, i.e.,|Fulfillment|
||Ltd.|Textile (Holdings) Co., Ltd.||March 26,||
|||（No.:2013-12）||2013||
||Other objects of|Refer to the Announcement of||12 months||
||issue including|Approval of Application for Private||from the listing||
||Tibet Ruihua|Issue of Shares that issued by the|March 25,|day of new|Under|
||Investment|Board of Directors of Shenzhen|2013|shares, i.e.,|Fulfillment|
||Development|Textile (Holdings) Co., Ltd.||March 26,||
||Co., Ltd.|（No.:2013-12）||2013||
|Othercommitmentsmade tominorityshareholders||||||
|Executed timely||||||
||Yes|||||
|or not?||||||
|Detailed person||||||
|for failing to||||||
|execute and the|Not applicable|||||
|next plan( If||||||
|any)||||||

2.There existed profit anticipation for theCompany’s assets or projects while the reporting period was still within the duration of the profit anticipation. The Company made explanation on whether the assets or projects reached the anticipated profit and the cause
N/A
X. Engagement/Disengagement of CPAs
CPAs currently engaged
|||
|-|-|
||Peking Certified Public Accountants（Special GeneralPartnership）|
|Name of the domestic CPAs||
|Remuneration for domestic accounting firm||
||45|
|(RMB’0000)||
|Continuous life of auditing service for||
||3|
|domestic accounting firm||
|Name of domestic CPA|Xiao Yi, Pan Zhongmin|

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 2013. The audit remuneration was RMB 0.25 million (including traveling expenses).
XI. Explanation of the Supervisory Committee and Independent Directors (If applicable)on the QualifiedAuditor’s Report Issued by the CPAs.
Not applicable
XII. Punishment and Rectification
Not applicable
Explanation on rectification
□Applicable√Not applicable
About directors, supervisors, senior executies or shareholders holding over5% of theCompany’s total shares suspected of being involved in trading of theCompany’s shares against the regulations and recovery of the profit obtained by such persons suspected of being involved in trading of theCompany’s shares against the regulations as disclosed by the Company.
□Applicable√Not applicable
XIII. Situation of being confronted of suspension or termination of listing upon disclosure of the Annual report
Not applicable
XIII.Notes to other significant Events
Not applicable
XIV. Significant events of subsidiaries
(1) On August 9, 2013, Shengbo Optoelectronic , a subsidiary of the company, had itsR&D center been regarded as Annual MunicipalR&D Center in 2012 (Technical Center), which is good for the improvement and enhancement of the construction ofR&D Center of the company, and the promotion of the market competitiveness ofenterprise.（Refer Announcement
No.2013-39）.
(2) On November 1, 2013, Phase II of the polaroid with TFT-LCD (Line 6) of Shengbo Optoelectronic , a subsidiary of the company, had been approved and listed into Special National Industrial Structure Adjustment in 2013. Also, Shengbo Optoelectronic had got the subsidy funds of RMB40 million, which was used to build the production factory and the publically auxiliary supporting facilities, construct the production line of wide polaroid and purchase the equipment andinstruments.（Refer AnnouncementNo.2013-53）.
(3) On December 19, 2013, Phase II of the polaroid with TFT-LCD (Line 6) of Shengbo Optoelectronic , a subsidiary of the company, had been listed into 2013 Support Plans of High-tech Industry Development Project in Shenzhen. Also, Shengbo Optoelectronic had gained the special subsidiary funds of RMB15 million from National Innovation City Construction of Municipal Investment Plans, which was mainly used to purchase the instruments, improve the existing manufacturing equipment and test condition, and buy the necessary technology and software.（Refer AnnouncementNo.2013-59）.
XVI..Issuing of Company Bonds
In the report period, The company did not issue bonds.
VI. Change of share capital and shareholding of Principal Shareholders
(I).Changes in share capital
Unit :shares
||||||||||
|-|-|-|-|-|-|-|-|-|
|Before the change||Increase/decrease（+，-）|||||After the Change||
|Amount|Proportion|||Capitalization|||||
|||Share|Bonus||||||
|||||of common|Other|Subtotal|Quantity|Proportion|
|||allotment|shares||||||
|||||reserve fund|||||

|||||||||
|-|-|-|-|-|-|-|-|
|1.Shares with||||||||
|conditional|53,838,478|16%|170,000,000|-53,761,678|116,238,322|170,076,800|33.58%|
|subscription||||||||
|2.State-owned||||||||
|legal person|53,763,440|15.98%|51,457,976|-53,763,440|-2,305,464|51,457,976|10.16%|
|shares||||||||
|3.Other||||||||
|domestic|75,038|0.02%|118,542,024|1,762|118,543,786|118,618,824|23.41%|
|shares||||||||
|Domestic||||||||
||75,038|0.02%||1,762|1,762|76,800|0.01%|
|Nature shares||||||||
|II.Shares with||||||||
|unconditional|282,683,371|84%||53,761,678|53,761,678|336,445,049|66.42%|
|subscription||||||||
|1.Common||||||||
|shares in|233,258,409|69.31%||53,763,440|53,763,440|287,021,849|56.67%|
|RMB||||||||
|2.Foreign||||||||
|shares in||||||||
||49,424,962|14.69%||-1,762|-1,762|49,423,200|9.75%|
|domestic||||||||
|market||||||||
|III. Total of||||||||
||336,521,849|100%|170,000,000||170,000,000|506,521,849|100%|
|capital shares||||||||

Reasons for share changed:
√Applicable□ Not applicable
As of December 31, 2013, the change in shares was as follows:
1. During the reporting period, after the approval of China Securities Regulatory Commission ZJXK[2013] No.2, the company has non-publically issued 170,000,000 shares to Shenzhen Investment Holdings and other 7 specific investors and increased 170,000,000 shares with the restricted sales condition. These shares had been listed at Shenzhen Stock Exchange on March 26, 2013. For more details, refer to No. 2013-11 Announcement of the Company on March 27, 2013;
2. During the reporting period, the company non-publically issued 53,763,440 restricted shares to Shenzhen Investment Holdings and Ultra-Deep Technology in 2010. After the expiration, the company increased
53,763,440 shares without restricted condition. These shares were used to relieve the restricted circulation on sales on August 12, 2013. For more details, refer to No. 2013-38 Announcement of the Company on August 7, 2013; 3. During the reporting period, Zhou Meirong, the former staff supervisor of the company, has left office. All her holding 7,050 locked shares of senior executive have been locked up from the date of leave, and the locked term is from August 17, 2013 to February 17, 2014. Also, the company has increased 1,762 shares with the
restricted sales condition.
Approval of Change of Shares
√Applicable□ Not applicable
On January 7, 2013, the company received the “Approval of Non-public Issuance of Shares for Shenzhen Textile (Group) Holdings Co., Ltd.” (ZJXK[2013] No.2) of China Securities Regulatory Commission, and approved the company to non-publically issue 170,000,000 shares to Shenzhen Investment Holdings and other 7 specific investors. For more details, refer to No. 2013-01 Announcement of the Company on January 8, 2013;
Transfer of Change of shares
√Applicable□ Not applicable
On March 11, 2013, the company submitted the relevant registration data to Shenzhen Branch of China Securities Depository and Clearing Corporation Limited (CSDC) on the basis of the non-public issuance and increase of shares, and gained the “Confirmation Letter of Securities Preregistration” on March 12, 2013. The shares
increased and issued were registered into account on March 25, 2013, and formally recorded into the shareholders list of the listed company.
Influence from the shareholding movements upon such financial indicatiors as eamings per share, net asset per share of the lastest year and the latest accounting period
√Applicable□ Not applicable
For the construction of Phase- II of the polaroid project with TFT-LCD, the company has non-publically issued 170,000,000 common stocks at the price of RMB5.83/share during the reporting period. After that, the total share capital has an increase of50.52% compared to the same period at the end of reporting period. Due to no benefits produced yet for the fund-raising project, the basic profit per share in recent period was impaired and diluted, and the net asset per share attributable to common shareholders of the company was increased by the change of the shares.
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulatiors
□Applicable√ Not applicable
II. Issuing and listing
1. Issuing activities over the past three Years
||||||||
|-|-|-|-|-|-|-|
|Description of|||||||
|||Issuing price|||Quantity||
|stock and its|||Issuing|||Expiration date|
||Ussuing date|(Or interest||Listing date|approved for||
|Derivative|||quantity|||of transaction|
|||rate)|||listing||
|Securities|||||||
|Stock|||||||
|.Common|||||||
|shares in RMB|July 7, 2010|9.30|91,397,849|August 9, 2010|91,397,849||
|（A shares）|||||||

|||||||
|-|-|-|-|-|-|
|Common||||||
|||||March 26,||
|shares in RMB|March 7, 2013|5.83|170,000,000||170,000,000|
|||||2013||
|（A shares）||||||
|Convertible Corporate Bonds, Detachable Convertible Bond and Corporate Bonds||||||
|Stock options||||||

Statement of security issuing in latest three years
In July 2010, the company issued 91,397, 849 shares of common stocks at the price of RMB 9.3 to some specific investors according to Zheng JianLicense[2010]882 by China Securities Regulatory Commission(briefly “ CSRC”), and the new shares started to be traded on Shenzhen Securities Exchange on August 9, 2010. As the blackout period lasts 36 months, the 53,763,440 shares issued to Shenzhen Investment Holdings Co., Ltd. and Shenzhen Shenchao Technology Investment Co., Ltd. can be publicly traded from August 12, 2013; and the 37,634,409 shares issued to the 4 institutional investors can be publicly traded from August 16, 2011 as the blackout period is 12 months. With this private placement, the total capital stock of the company changes from 245,124,000 to 336,521,849 shares.
On January 4, 2013, the Company was approved by Zhen Jian Xu Ke (2013) No. 2 Document of CSRC to privately issue 170,000,000 RMB ordinary shares to 7 specific investors at the price of RMB 5.83 per share. Shenzhen Investment Holding Co., Ltd. subscribed for 51,457,976 shares. The period of sale restriction is 36 months. The expected time of listing of such shares is March 26 , 2016. The period of sale restriction of the shares issued to the other 6 investors is 12 months. The expected time of listing of such shares is March 26 , 2014. After the completion of this issue, the total share capital of the Company changed from 336,521,849 shares into 506,521,849 shares.
2. Change of asset and liability structure caused by change of total capital shares and structure
After the completion of the non-public issuance, the general capital of the company has increased to 506,521,849 shares from 506,521,849 shares. The total assets and the net assets of the company have raised and the asset liability ratio has declined. After the issuance, the profit per share attributable to the shareholders of the listed company is RMB0.09 calculated as per the full impairment, and the net asset per share is RMB4.54. In addition, thecompany’s capital structure and financial structure have been improved, reduced the financial risk and established a good foundation for the further development of the company.
3.About the existingemployees’ shares
N/A
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
Unit:shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Total shareholders at the end of the 5th||||||
|Total shareholders in the||||||||||
|||17,891||day from the date of disclosing the annual||||17,504||
|reporting period||||||||||
|||||report||||||
|Shares held by 5% shareholders||||||||||
|||||Increas|||Pledging or freezing|||
||||Quantity|||Number||||
|||||e/decre|Number|||||
||||at the|||of the||||
|||Share||ase in|of the|||||
|Shareholder|Properties of||end of|||Non-rest||||
|||proportio||the|restricted||Status of the|||
|name|shareholder||the|||ricted|||Quantity|
|||n %||reporti|shares||shares|||
||||reportin|||shares||||
|||||ng|held|||||
||||g period|||held||||
|||||period||||||
|ShenzhenInvestmentHoldings Co.,Ltd.|State-ownedlegal person|46.21%|234,069,436||51,457,976|182,611,460||||
|Tibet RuihuaInvestmentDevelopmentCo., Ltd.|Domestic nonState-ownedLegal person|4.17%|21,108,061||21,108,061|0||||
|National SocialSecurity Fundportfolio 501|Other|3.45%|17,500,000||17,500,000|0||||
|Pingan DahuaFund Company－Pingan Bank－PinganIntrustPinganWealth＊trust fundplan ofChuangyingstage 1 No. 13|Other|3.39%|17,156,003||17,156,003|0||||
|CITICSecurities Co.,Ltd.|Domestic nonState-ownedLegal person|3.39%|17,152,959||17,152,959|0||||
|Pingan DahuaFund Company－Pingan Bank－Wang Fang|Other|3.39%|17,152,659||17,152,659|0||||
|Huaan FundCompany－ICBC－Huarong|Other|3.39%|17,152,658||17,152,658|0||||

|||||||||
|-|-|-|-|-|-|-|-|
|Intrust·. Equityinvestmenttrust fund planof Huaan FundNO.2||||||||
|ShenzhenShenchaoTechnologyInvestmentCo., Ltd.|State-ownedLegal person|3.18%|16,129,032|0|16,129,032|||
|ICBC－NuoanSecuritiesInvestmentFund|Other|0.89%|4,500,000|4,500,000|0|||
|ICBC-NuoanValue growSecuritiesInvestmentFund|Other|0.49%|2,500,000|2,500,000|0|||
|||In 2013, the company has non-publically issued the restricted shares to Tibet||||||
|||Ruihua Investment and Development Co., Ltd.,Boshi Fund, Pingan Dahua Fund,||||||
|Strategy investors or general||||||||
|legal person becomes top 10||||||||
|||CITIC Securities, Huaan Fund and Nuoan Fund Management Co., Ltd. After||||||
|shareholders due to rights||||||||
|||that, the shares have been locked up from the listed date on March 26, 2013,||||||
|issued (if any )(See Notes 3)||||||||
|||with the lockup term of 12 months.||||||
|||Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned||||||
|||subsidiary of Shenzhen Investment Holding Co., Ltd. and a person taking||||||
|||concerted action. Except this, the Company did not whether there is relationship||||||
|Explanation on shareholders||||||||
|||between the top ten shareholders holding non-restricted negotiable shares and||||||
|participating in the margin||||||||
|||between the top ten shareholders holding non-restricted negotiable shares and||||||
|trading business||||||||
|||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 endof the reporting period||||Share type||
|Name of the shareholder||||||||
|||||||Share type|Quantity|
|Shenzhen Investment HoldingsCo., Ltd.||182,611,460||||RMB Common||
|||||||shares||
|Shenzhen ShenchaoTechnology Investment Co.,||16,129,032||||RMB Common||
|||||||shares||
|TUNG SHING SECURITIES||1,704,767||||Foreign shares||

||||
|-|-|-|
|(BROKERS) LIMITED||placed in|
|||domestic|
|||exchange|
|Zheng Bangsheng|1,203,800|Foreign shares|
|||placed in|
|||domestic|
|||exchange|
|Pan Zhiyong|1,100,007|RMB Common|
|||shares|
|Chongqing International TrustCo.,Ltd.－Jinzhong HexidingSecurities investment trust fundset|1,013,790||
|||RMB Common|
|||shares|
|Xu Ruijiang|791,688|Foreign shares|
|||placed in|
|||domestic|
|||exchange|
|Huang Mianshi|783,820|RMB Common|
|||shares|
|Fang Minjun|730,010|RMB Common|
|||shares|
|Yao Jun|672,076|RMB Common|
|||shares|
|Explanation on associated|||
|relationship or consistent|Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned||
|action among the top 10|subsidiary of Shenzhen Investment Holdings Co., Ltd. and a person taking||
|shareholders of non-restricted|concerted action. Except this, the Company did not make sure whether there is||
|negotiable shares and that|relationship between the top ten shareholders holding non-restricted negotiable||
|between the top 10|shares and if they are persons taking concerted action defined in Regulations on||
|shareholders of non-restricted|Disclosure of Information about Shareholding of Shareholders of Listed||
|negotiable shares and top 10|Companies.||
|shareholders|||
|Explanation on shareholders|||
|participating in the margin|||
||N/A||
|trading business(if any )(See|||
|Notes 4)|||

Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes√ No
2.Controlling shareholder
Legal person
|||||||
|-|-|-|-|-|-|
|Name of the Controlling|Legal|Date of|||Principal business|
||||Organization code|Registered Capital||
|shareholder|representati|incorpora|||activities|

|||||||
|-|-|-|-|-|-|
||ve/Leader|tion||||
||||||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|Fan|October|||conducting asset|
||||767566421|5600 million||
|Holdings Co., Ltd.|Mingchun|13, 2004|||reorganization,|
||||||system|
||||||transformation and|
||||||capital operation of|
||||||affiliated|
||||||enterprises, making|
||||||investment and|
||||||doing other|
||||||businesses|
||||||authorized by the|
||||||Municipal|
||||||State-owned Assets|
||||||Commission.|
||As of December 31, 2013, the total assets and net assets for the company were|||||
||respectively RMB 198.591 billion and RMB 83.232 billion. The Business income of|||||
||the Company was RMB 28.627 billion, The Total profit of the Company was RMB|||||
||8.559 billion from January to December 2013 ,（The above data is unaudited）．In the|||||
|Operating results,||||||
|financial position, cash||||||
||future, the company shall focus on the overall goal of transformation of development|||||
|flow and future||||||
||mode and innovation of development, fully strengthen and deepen the reform, perfect|||||
|development strategy||||||
||the corporate governance structure, innovate the management system and mechanism,|||||
||further intensify the construction of team and enterprise culture, and enhance the|||||
||control and influence of state-owned capital.|||||
|The equity of the|Shen property（000011），Quantity of shares held380．366 million ，Shareholding|||||
|controlling shareholder|ratio：63.81%; Shen Real estate（000029）, Quantity of shares held 642.8843 million,|||||
|in other domestic and|Shareholding ratio:63.55%; Shenbo（000019）, Quantity of shares held 40．1436|||||

|||
|-|-|
|foreign listed companies|million, Shareholding ratio:16%;|
|held or partly held by it|Shen Universe （000023）,Quantity of shares held 18.1349 million, Shareholding|
|in the report period|ratio:13.07%;,|
||Pingan(601318),Quantity of shares held 481.3596 million,Shareholding ratio:6.08%;|
||Shenzhen International (Main market of Hongkong,00152),Quantity of shares held|
||7955.2168 million,Shareholding ratio:48.59%.|

Change of the actual controller in the reporting period
□Applicable√Not applicable
3．Information about the controlling shareholder of the Company
Legal person
|||||||
|-|-|-|-|-|-|
||Legal|||||
|||Date of||||
|Name of the controlling|representati|||||
|||establish|Institution code|Registered capital|Main business|
|shareholder|ve/person in|||||
|||ment||||
||charge|||||
||||||Performing the|
||||||responsibilities of|
||||||investors on behalf|
|State-owned Assets|||||of the state and|
|Regulatory Commission|Zhang|July 31,|||supervising and|
||||K3172806-7|||
|of Shenzhen Municipal|Xiaoli|2004|||managing|
|People's Government|||||state-owned assets|
||||||according to|
||||||authorization and|
||||||law.|
||Shenzhen State-owned Assets Commission was established on July 31, 2004. In 2009,|||||
||it was renamed as State-owned assets Administration of Shenzhen Municipal People's|||||
|Operating results,||||||
||Government. In 2011, it was renamed as State-owned Assets Regulatory Commission|||||
|financial position, cash||||||
||of Shenzhen Municipal People's Government. As a special entity directly under|||||
|flow and future||||||
||Shenzhen Municipal Government, Shenzhen State-owned Assets Commission|||||
|development strategy||||||
||performs the responsibilities of investors on behalf of the state and supervises and|||||
||manages state-owned assets according to authorization and law.|||||
||Except for Shenzhen Holdings Co., Ltd., the holding shareholder of the company,|||||
|Equity of other||||||
|domestic/foreign listed||||||
||other domestic and foreign listed companies of the equity held by the actual controller|||||
|company controlled by||||||
||haven’t been shown in the list of the top ten shareholders of the company.|||||
|actual controller in||||||
|reporting period||||||

Change of the actual controller in the reporting period
□Applicable√Not applicable
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□Applicable√Not applicable
4.Other comporate shareholder holding over10% of theCompany’s shares
N/A
IV. Share Acquistition plan proposed or implemented by theCompany’s Shareholder and its concerted actor in the reporting period
N/A
VII. Information about Directors, Supervisors and Senior Executives
I. Change ein shares held by directors, supervisors and senior executives
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Number|Volume|Volume|Number|
||||||||of shares|of shares|of shares|of shares|
||||||||acquired|acquired|sold|held at|
||||||Starting|Expiry|||||
|||Office|||||at end of|during|during|end of|
|Name|Positions||Sex|Age|date of|date of|||||
|||status|||||the|the|the|the|
||||||tenure|tenure|||||
||||||||reporting|reporting|reporting|reporting|
||||||||period(sh|period|period(sh|period(sh|
||||||||ares)|(shares)|ares)|ares)|
|Wang|Board||||August|August|||||
|||In office|Male|43|||0|0|0|0|
|Bin|chairman||||16,2013|15, 2016|||||
||Director,||||||||||
||||||August|August|||||
|Zhu Jun|General|In office|Male|50|||0|0|0|0|
||||||16,2013|15, 2016|||||
||Manager||||||||||
||||||August|August|||||
|Chao Jin|Director|In office|Female|51|||0|0|0|0|
||||||16,2013|15, 2016|||||
|Wang|||||August|August|||||
||Director|In office|Male|49|||0|0|0|0|
|Yongjian|||||16,2013|15, 2016|||||
|Lou|||||August|August|||||
||Director|In office|Male|59|||0|0|0|0|
|Chao|||||16,2013|15, 2016|||||
||Director,||||||||||
|Jin|||||||||||
||Chief||||August|August|||||
|Zhenyua||In office|Female|42|||0|0|0|0|
||Financial||||16,2013|15, 2016|||||
|n|||||||||||
||officer||||||||||
||Independ||||||||||
|Zhang|||||August|August|||||
||ent|In office|Male|54|||0|0|0|0|
|Yong|||||16,2013|15, 2016|||||
||Director||||||||||
||Independ||||||||||
|Shi|||||August|August|||||
||ent|In office|Female|46|||0|0|0|0|
|Weihong|||||16,2013|15, 2016|||||
||Director||||||||||
||Independ||||||||||
|He|||||August|August|||||
||ent|In office|Male|61|||0|0|0|0|
|Qiang|||||16,2013|15, 2016|||||
||Director||||||||||
||Chairma||||||||||
||n of the||||||||||
||supervis||||August|August|||||
|Lin Lebo||In office|Male|53|||0|0|0|0|
||ory||||16,2013|15, 2016|||||
||committ||||||||||
||ee||||||||||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Supervis||||August|August|||||
|Li Wei||In office|Male|48|||0|0|0|0|
||or||||16,2013|15, 2016|||||
||Employe||||||||||
|Zhang|||||||||||
||e||||August|August|||||
|Xiaodon||In office|Male|38|||0|0|0|0|
||superviso||||16,2013|15, 2016|||||
|g|||||||||||
||r||||||||||
|Feng|Deputy||||August|August|||||
|||In office|Male|51|||0|0|0|0|
|Junbin|GM||||16,2013|15, 2016|||||
|Zhang|Deputy||||August|August|||||
|||In office|Male|48|||0|0|0|0|
|Hong|GM||||16,2013|15, 2016|||||
|Zhu|Deputy||||August|August|||||
|||In office|Male|49|||93,000|0|0|93,000|
|Meizhu|GM||||16,2013|15, 2016|||||
||Secretary||||||||||
||to the||||October|August|||||
|Li Jiang||In office|Male|36|||0|0|0|0|
||board of||||23, 2013|15, 2016|||||
||directors||||||||||
|Gao||Office|||May 4,|August|||||
||Director||Male|60|||0|0|0|0|
|Guoshi||leaving|||2010|16, 2013|||||
||Independ||||||||||
|Yang||Office|||May 4,|August|||||
||ent||Male|44|||0|0|0|0|
|Shibin||leaving|||2010|16, 2013|||||
||Director||||||||||
||Director,||||||||||
|Xiang|Chief|Office|||May 4,|August|||||
||||Male|43|||0|0|0|0|
|Dong|Financial|leaving|||2010|16, 2013|||||
||officer||||||||||
|Xu||Office|||May 4,|August|||||
||Director||Male|48|||0|0|0|0|
|Shiying||leaving|||2010|16, 2013|||||
||Chairma||||||||||
||n of the||||||||||
|Wang|superviso|Office|||May 4,|August|||||
||||Male|54|||0|0|0|0|
|Junzhao|ry|leaving|||2010|16, 2013|||||
||committe||||||||||
||e||||||||||
|Zhou|Supervis|Office|||May 4,|August|||||
||||Female|55|||7,050|0|0|7,050|
|Meirong|or|leaving|||2010|16, 2013|||||
||Financial|Office|||May 4,|August|||||
|Liu Yi|||Male|60|||0|0|0|0|
||Manager|leaving|||2010|16, 2013|||||
|Total|--|--|--|--|--|--|100,050|0|0|100,050|

 II.Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
(1) Director
Wang Bin , Male, Born in 1970, Doctor, Senior Economist , member of the Communist party, He served successively as secretary of Personnel Division of Equipment Branch of Henan Textile Machinery Plant, secretary of Communist Youth League of the Company, manager of a number of subsidiaries of the Company, general manager assistant and general manager of the Company. In the report period, He served as Board chairman and Secretary of Party Committee of the Company.
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. In the report period, He served as Director, general manager and Vice secretary of Party Committee of the Company and Director and Vice Board chairman of Tianma Microelectronic Co., Ltd.
Chao Jin, Female, Born in 1962, Master degree, Senior political engineer, Economic engineer, communist party member. 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 Party Committee, 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 Invetment Management Co., Ltd. In the report period, He served as Director of the Company.
Lou Chao , Male, born in 1954, Bachelor Degree, Senior Economist, member of communist party of China. He used to served as teacher in Anhui provincial party committee party school, Deputy Chief in plant division in Shenzhen seg Hitachi color display devices co., LTD., Party Committee, General Manager Assistant and Secretary to the board, Director of the party; served as office director in Shenzhen investment management Co., Deputy Manager in Shenzhen shenchao investment of science and technology co., LTD., now serve as party branch secretary, general manager, 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 , Lawyer, once served successively as Deputy director of 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,Vice president of Shenzhen Lawyer Association, He served as independent Director of Shenzhen Agricultural Products Co., Ltd.,He new serves as Partner of Guangdong Renren law firm and Secretary of Party Committee of Shenzhen Lawyer Association. In the report period, He served as Independent Director of the Company.
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, He served as Independent Director of Shenzhen Tili(Group) Co., Ltd, He new serves as Senior prtner of Shenzhen Guangming Certified public Accountants and Concurrently as Independent director of Shenzhen SEG Samsung Co., Ltd. In the report period, He served as 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, and in the Company.
（II）Supervisor
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 chairman of the 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.,He new serves as Deputy director of Enterprise No2.Dept of Shenzhen Investment Management Co., Ltd., In the report period, He served as 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 (group) co., LTD., manager in business management department; used to be manager in Shenzhen Bainian clothing co., LTD. Now
serve as party department minister and superior of the company.
（III）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.
Zhang Hong, Male,Born 1965, master degree, Engineer, once served successively as assistant of China Textile University, cadre of China Textile Material Company, Chief of Management Dept of Shenzhen Textile (Holding) Co., Ltd.,Company manager subordinate enterprises, General Manager assistant. 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 and General Manager of Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
Li Jiang , Male, born in 1977, College, Economist, communist party member. He used to serve as general manager assistant in Hengshun (symbian) industrial co., LTD., the subordinate enterprise of Shenzhen Textile (group) co., LTD., the general manager in YeHui(longnan) textile and garment industry Co., the general manager of Yehui International Co. Ltd.. Now serve as the secretary of the Board in the company.
Office taking in shareholder companies
√Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
|||Titles|||Does he /she|
|Names of the||engaged in|Sharting date||receive|
|||||Expiry date of||
|persons in|Names of the shareholders|the|of office||remuneration or|
|||||office term||
|office||shareholder|term||allowance from|
|||s|||the shareholder|
|||Deputy||||
|Wang|Shenzhen Investment Holdings Co.,|||||
|||General|July 1, 2009||Yes|
|Yongjian|Ltd.|||||
|||Manager||||
||Shenzhen Shenchao Technology|General|August 20,|||
|Lou Chao|||||Yes|
||Investment Co., Ltd.|Manager|2007|||
|||Deputy||||
||Shenzhen Investment Holdings Co.,|Director of|February 1,|||
|Li Wei|||||Yes|
||Ltd.|Enterprise|2009|||
|||No.2 Dept||||
|Notes|N/A|||||

Offices taken in other organizations
□Applicable√Not applicable
III. 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, 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
|||||||||
|-|-|-|-|-|-|-|-|
||||||||Remuneratio|
||||||Total|Total||
||||||||n actually|
||||||remuneration|remuneration||
||||||||receivect at|
|Name|Positions|Sex|Age|Office status|received|received||
||||||||the end of|
||||||from the|from the||
||||||||the reporting|
||||||Company|shareholder||
||||||||period|
||Board|||||||
|Wang Bin||Male|43|In Office|60.61||60.61|
||chairman|||||||
||Director,|||||||
|Zhu Jun|General|Male|50|In office|58.78||58.78|
||Manager|||||||
|Chao Jin|Director|Female|51|In Office|67.11||67.11|
|Wang||||||||
||Director|Male|49|In office|0|53.94|53.94|
|Yongjian||||||||
|Lou Chao|Director|Male|59|In Office|0|48|48|
||Director,|||||||
||Chief|||||||
|Jin Zhenyuan||Female|42|In office|24.83||24.83|
||Financial|||||||
||officer|||||||
||Independent|||||||
|Zhang Yong||Male|54|In Office|8||8|
||Director|||||||
||Independent|||||||
|Shi Weihong||Female|46|In office|8||8|
||director|||||||
||Independent|||||||
|He Qiang||Male|61|In Office|3||3|
||director|||||||
||Chairman of|||||||
||the|||||||
|Lin Lebo||Male|53|In Office|22||22|
||supervisory|||||||
||committee|||||||

|||||||||
|-|-|-|-|-|-|-|-|
|Li Wei|Supervisor|Male|48|In office|0|29.96|29.96|
|Zhang|Employee|||||||
|||Male|38|In Office|33.15||33.15|
|Xiaodong|supervisor|||||||
|Feng Junbin|Deputy GM|Male|51|In office|71.29||71.29|
|Zhang Hong|Deputy GM|Male|48|In Office|61.62||61.62|
|Zhu Meizhu|Deputy GM|Male|49|In office|65.42||65.42|
||Secretary to|||||||
|Li Jiang|the board of|Male|36|In office|10.99||10.99|
||directors|||||||
|Total|--|--|--|--|494.8|131.9|626.7|

 Incentive equity to directors, supervisors or/and senior executives in the reporting period
□Applicable√Not applicable
IV. Retirement and dismissal of Directors, Supervisors and senior Executives
||||||
|-|-|-|-|-|
|Names|Titles|Types|Date|Causes|
|||||Expiration of|
|||Left the post upon|||
|Gao Guoshi|Director||August 16, 2013|the term of|
|||expiration|||
|||||office|
|||||Expiration of|
|||Left the post upon|||
|Yang Shibin|Independent Director||August 16, 2013|the term of|
|||expiration|||
|||||office|
|||||Expiration of|
||Director, Chief Financial|Left the post upon|||
|Xiang Dong|||August 16, 2013|the term of|
||officer|expiration|||
|||||office|
|||||Expiration of|
|||Left the post upon|||
|Xu Shiying|Director||August 16, 2013|the term of|
|||expiration|||
|||||office|
|||||Expiration of|
|Wang|Chairman of the supervisory|Left the post upon|||
||||August 16, 2013|the term of|
|Junzhao|committee|expiration|||
|||||office|
|||||Expiration of|
|ZhouMeirong||Left the post upon|||
||Supervisor||August 16, 2013|the term of|
|||expiration|||
|||||office|
|||||Expiration of|
|||Left the post upon|||
|Liu Yi|Financial Manager||August 16, 2013|the term of|
|||expiration|||
|||||office|

V. Change of the Core Team of Technology of Key technical personnel (Other than director, supervisor or senior executive)in the Reporting Period
The company has continually established and improved the incentive and restraint mechanisms to cultivate a
long-term and stable talent team, and has formed a relatively stable technology and management team. Thus, there
is no the significant impact on thecompany’s core competitiveness caused by the turnover in core technical team and key technical personnel during the reporting period.
VI. Particulars about employees.
|||||
|-|-|-|-|
|Classified|Divided by function|Number of persons|Proportion(%)|
|Classifiedaccording typrofessions|Production|1,171|79.39|
||Sales|38|2.58|
||Technical|113|7.66|
||Financial|39|2.64|
||Administrative|114|7.73|
||Total|1,475|100|
|Classifiedaccording byeducationbackground|Postgraduate or above|39|2.64|
||Universities|225|15.25|
||Colleges|151|10.24|
||Mid-school or below|1,060|71.86|
||Total|1,475|100|

As of December 31, 2013, The Company should bear expenses for 100 retired employees.
VIII. Administrative structure
I. General situation
In the report period, The company has been trying to optimize the internal organization structure, establish all kinds of systems for internal control, standardize the business operation and enhance corporate governance in accordance with Company Law, Securities Law, Principles for Corporate Governance of Public Companies, Standard Operation Guidelines for Public Companies Listed on the Main Board of Shenzhen Securities Exchange and all other relevant laws, legal provisions and requirements of the guideline documents by CSRC. While further improve the organizational structure and workflow of internal control, strengthen the risk management and control, and guarantee the healthy and stable development of the company.
The Board Meeting of the company convened and held and the voting procedure conducted have strictly been in accordance with the provision of “Regulations” and “Rules of Procedure for the Board of Directors” of the company, and all the Directors shall conscientiously, diligently and honestly assume their responsibilities. All the independent directors shall be responsible for the company and every shareholder, actively attend the general meeting and the Board Meeting during the reporting period, seriously perform their duties and fully express their independent views on the operation, decision-making and major matters of the company. The Board of Directors is composed of Strategy, Audit and Nomination Committee with normal operation, conscientiously fulfills the internal audit, remuneration and assessment, nomination of senior management and other relevant duties, and strengthens the decision-making role in the relevant work field of the company, which plays an active role in the transformation and development of the company.
In 2013, the Board of Directors of the company has further promoted the transparency of information, well conducted the propaganda of investor protection, made full use of various platforms, such as telephone, e-mail, and website, especially the interactive platform of investor relations in Shenzhen Stock Exchange, timely answered the investors, and strived to interactively communicate with the minority investors. At the same time, for further enhancing the acquaintance for all parties and improving the transparency of listed company, the company has encouraged the investors to visit the company and fully observed the operation status of the company through visiting the production and operation place of the company and communicating with the core management of the listed companies face-to-face. Thus, the investors are familiar with the company much intuitively and comprehensively. Also, the company is urged to build a sense of responsibility for investor return, and thecompany’s governance is improved.
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 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: monthly report the major financial indicator newsletter, the implementation of fee budget and the cash flows, quarterly report the loans and deposit statements, the list of financial assets available for sale, the investment property schedules and non-operating profit and loss summary. 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”.
In addition, there is no difference among the governance of the company, “Company Law” and the relevant provisions of China Securities Regulatory Commission.
Implementation of the Campaign of Corporate Governance and Preparation and Implementation of the
Registration Management System for insiders
(1) The implementation of special governance of the company
The improvement of thecompany’s governance and the promotion of the standardized operation are the cornerstone of the sustainable and healthy development for the listed companies. The company has established the perfect corporate governance structure, guaranteed the normal and efficient operation of decision-making agency, and achieved the unity of the norm of scientific decision-making and the quick decision-making suitable to operation and development. Over the years, Shenzhen Stock Exchange has given fine review for the information disclosure of the company. Thus, the normal governance of the company and the information disclosure level are improved steadily. During the reporting period, the company attended the “Prevention and Control Meeting on Insider Transaction of Listed Company in Shenzhen” organized by Shenzhen Regulatory Agency on March 19, 2013 to learn the laws and regulations and the relevant cases of insider transactions and define the specific requirements of prevention and control of insider transactions. Also, the company attended the training meeting on the basic financial accounting of listed company organized by Shenzhen Regulatory Agency on June 3, 2013 to define the financialchargers’ responsibilities on the standardization of thecompany’s basic financial accounting works and the guarantee of the true, complete and accurate financial information.
(2) The formulation and implementation of the Registration and Management System on Learners of Insider
Information
The company has always paid importance to regulate insider information management and established the “Registration System on Learners of Insider Information” in October, 2009. In December, 2011, the company has amended the “Registration System on Learners of Insider Information”, perfected the archives of learners of insider information and improved the memorandum of major events schedule and other requirements. After report non-public information to the holding shareholders, the company shall timely register the insider information personnel and the relevant information. Also, take effective measures before the disclosure of major sensitive information, the company shall control the minimum scope for the information learners, well conduct the reminder of confidential learners, and effectively prevent the occurrence of the disclosure of insider information and the transactions of insider information. During the reporting period, there not exists the situation that the inside information learners use the inside information to deal with thecompany’s stocks. According to the principle of fair disclosure of information, the company has simultaneously disclosed the “Annual Performance Newsletter 2013” (Bulletin No.2014-01) when report 2013 annual performance newsletter to the majority shareholders. During the reporting period, the company has effectively strengthened the prevention and control of insider transactions, and improved all staff of the company by various forms, especially for the prevention and control consciousness of insider transactions of key personnel. In accordance with the requirements of “Announcement on Organization and Study of Prevention and Control Meeting Data of Insider Transactions of Listed Company in Shenzhen” of Shenzhen Regulatory Agency, the company has organized and implemented twice special training on the prevention and control of insider transactions from April to May in 2013, and the Directors, supervisors, senior management and the key personnel in headquarter and secondary subsidiary have attended. After training, the company has further strengthened the management awareness of the prevention of insider transactions and the norm of insider information.
II. Annual General Meeting and ExtraordinaryShareholders’ Meetings in the Reporting Period 1.Annual General Meeting
|||||||
|-|-|-|-|-|-|
|||Description of||||
|Sessions|Meeting Date||Resolution|Disclosure date|Disclosure index|
|||proposals||||
|||(1) The Work|||B33 .Securities|
|2012||||||
|||Report of the|||time , E60.|
|Shareholders’|April 22, 2013||Adoption|April 25, 2013||
|||Board of|||Securities,B014.|
|general meeting||||||
|||Directors for|||China Securities|

|||
|-|-|
|2012; (2) The|Journal, A184.|
|Work Report of|Shanghai|
|the supervisory|Securities New ,|
|Committee for|A13.Honggang|
|2012;(3) 2012|Commercial|
|Financial|Daily and|
|settlement report;|www.cninfo.co|
|(4) 2012 Profit|m.cn.|
|distribution|Announcement|
|proposal; (5) The|of Resolutions|
|Proposal for|of the 2012|
|Retaining|Annual|
|Certified Public|Shareholders'|
|Accountants in|General Meeting|
|2013; (6)|（No.2013-25）|
|Announcement of||
|the estimated||
|amount of daily||
|related||
|transactions in||
|2013; 7.||
|“Proposal on||
|Transfer of||
|Equity of Union||
|Development||
|Group Co., Ltd.”||
|; 8. the Proposal||
|for||
|Supplementing||
|Working Capital||
|with Part of Idle||
|Raised||
|Proceeds;9.||
|Listen to the||
|independent||
|directors made||
|the debriefing||
|report for 2012.||

2.ExtraordinaryShareholders’ Meetings
|||||||
|-|-|-|-|-|-|
|||Description of||||
|Sessions|Meeting Date||Resolution|Disclosure date|Disclosure index|
|||proposals||||

||||||
|-|-|-|-|-|
|||1. The Proposal|||
|||Concerning||B29 .Securities|
|||||time , c16.|
|||Reelection of the|||
|||||Securities|
|||Board of||time ,B022.|
|||||China Securities|
|||Directors of the|||
|||||Journal, 50.|
|||Company;2 The||Shanghai|
|||||Securities New ,|
|||Proposal|||
|The first||||B6.Honggang|
|provisional||Concerning||Commercial|
|shareholders’|August 16, 2013||August 17, 2013|Daily and|
|||Reelection of the|||
|General meeting||||www.cninfo.com.|
|in 2013||Supervisory||cn.|
|||||Announcement of|
|||Committee of the|||
|||||Resolutions of the|
|||Company; 3.||First provisional|
|||||2013|
|||“Proposal on|||
|||||Shareholders'|
|||Reduction of||General|
|||||Meeting(No.2013|
|||Tradable Stocks|||
|||||-41）|
|||in Market”|||
|||||B25 .Securities|
|||The Proposal on|||
|||||time , B4.|
|||||Securities|
|||Transfer|||
|||||time ,B22. China|
|||||Securities|
|||Confirmation of|||
|||||Journal, B42.|
|||Equity Price of|||
|||||Shanghai|
|The Second||||Securities New ,|
|||Shenzhen Jinlan|||
|provisional||||A17.Honggang|
||November 11,||November 12,||
|||Decorative|||
|shareholders’||||Commercial|
||2013||2013||
|General meeting||||Daily and|
|||Supplies|||
|in 2013||||www.cninfo.com.|
|||Industrial Co.,|||
|||||cn.|
|||||Announcement of|
|||Ltd|||
|||||Resolutions of the|
|||||Second|
|||||provisional 2013|
|||||Shareholders'|
|||||General|

||
|-|
|Meeting(No.2013|
|-56）|

III. Duty performance of independent Directors
1. Attendance of Board Meetings and General Meetings
||||||||
|-|-|-|-|-|-|-|
|Independent Directors’ Attendance at Board Meetings|||||||
||Number of||||||
|||||||Failure to|
||Board||Number of||||
|||||||personally|
||meetings|Number of|meetings|Number of|||
|Independent|||||Number of|attend board|
||necessary to|spot|attended by|attendances by|||
|Directors|||||absence|meetings|
||be attended in|attendances|Communicatio|representative|||
|||||||successively|
||the reporting||n||||
|||||||twice (Yes/No)|
||period||||||
|Zhang Yong|11|4|7|0|0|No|
|Shi Weihong|11|4|7|0|0|No|
|Yang Shubin|7|3|4|0|0|No|
|He Qiang|4|1|3|0|0|No|
|Number of general meetings|||||||
|attended by independent directors||3|||||
|as non-voting delegates|||||||

Notes to failure to personally attend Board Meetings Successively Twice
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 2013, 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 2013 Annu al Report disclosed on March 29, 2014 in http://www.cninfo.com.cn). They gave many opinions and suggestions
during meetings and adjournment 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 five 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, the Audit Committee has also attended to select and hire the manager of Audit Department, and expressed their opinions on the employment of Audit Manager.
(2) Remuneration and Appraisal Committee: during the reporting period, the Remuneration and Appraisal Committee has held three meetings, respectively convened conference for 2012 performance appraisal of senior management, appointment appraisal of vice general manager and employment programs, and formed the
resolution.
(3) Nomination Committee: during the reporting period, the Nomination Committee has held three meetings, respectively convened conference for nominated director candidates, employment of senior management and change of theBoard’s secretary, and formed the resolution.
V. 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
VI. Independence and Completeness in business, personnel , assets, organization and finance All the company and the controlling shareholders can implement “Five Separation” on the aspect of business, personnel, assets, institutions and finance. The Board of Directors, the Supervisory Committee and the internal agencies all operate independently, and the company has independent and complete business and self-operation ability.
VII. Horiontal Competitions
Not applicable
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 2012 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
I. Internal control Construction
According to the requirements of “Announcement on Pilot Work of Internal Control Norms of Listed Company in Shenzhen” of Shenzhen Regulatory Bureau of the China Securities Regulatory Commission (Shenzhen Regulatory BureauCompany〔2011〕No. 31), the company has carried out the optimization of internal control system and the self-evaluation of internal control, in order to ensure the effectiveness of the design and operation of internal control system.
1. For the construction of the internal control system is a kind of continuous improvement project, the company has continually perfected the construction of the internal control system, established the dynamic adjustment and improvement mechanism and strictly conducted the dynamic risk tracking, the dynamic assessment, the dynamic control and the dynamic feedback. Since the “Internal Control Manual” is performed, the Audit Department of the company has always asked all the departments and every enterprise for their feedback, and made a systematic match with “Norms for Enterprise Internal Control” and the relevant laws, regulations, policies and systems. In 2013, the company has made amendment to the “Internal Control Manual”, and made the corresponding revision for “Permission Guideline List”, flow chart of internal control and risk control document according to the requirement of optimization of the organizational structure. As per the internal control manual after revised, the
company shall adhere to the main line of business processes, and integrate the management system and the requirement of all function departments of the Group. As a result, a complete set of procedural documents has been formulated, which has highlighted the system files focusing on the business cycle control and the configuration optimization of theGroup’s resources besides the improvement of the main contents of former financial control.
2. The implementation of the self-evaluation of internal control is to effectively evaluate the perfectness, rationality, abidance and effectiveness of implementation. On July and December, 2013, the Audit Department of the company has respectively carried out the semi-annual self-evaluation of internal control for the key enterprises, conducted the annual self-evaluation of internal control for the Group and all the wholly owned subsidiaries, and prepared the annual report of self-evaluation of internal control as per the requirement, which shall be disclosed after the examination and approval of the Board of Directors of the company. Meanwhile, the company has fully asked the evaluated units and departments for their opinions and suggestions in the process of evaluation, and ensured the compliance and operability of the internal control. After the implementation of the self-evaluation of internal control, the company has perfected the continual improvement and updating mechanism of internal system, actively established the risk management and measurement systems of the company, and enhanced the awareness of the risk control and management and the ability of practice of internal control in the daily work for all departments and enterprises.
II. Statement of the Board of directors on the Responsibility of internal control
The Board of Directors believes that: the company has strictly abided by the relevant laws, rules and regulations, and the requirements of regular documents, basically established and perfected the internal control system. The company has considered the internal environment, risk assessment, control activities, information and communication, internal supervision and other basic elements for the internal control system; and strictly and effectively controlled its subsidiaries, the affiliated transactions, external guarantee, significant investment, information disclosure and other internal controls, so that all kinds of systems have implemented effectively. Thus, there is no grave defect for the internal control mechanism and system of the company, no significant deviation in the process of actual implementation, and the operation of the internal control system is effective. Also, the internal control self-evaluation is in conformity with the actual situation of internal control of the company. III.Basis for establishment of internal control of the Financial Report
Based on the actual situation of thecompany’s business, the company has complied with the requirements of “Fundamental Norms for Enterprise Internal Control”, “Standard Operation Guideline in Main Board of Listed Company of Shenzhen Stock Exchange” and the relevant laws and regulations to establish the internal control of
financial reports.
IV. Self-assessment report of the internal control
|||
|-|-|
|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.||
|Date of disclosing the internal||
|control self-assessment report,|March 29, 2014|
|full text||
|Index of disclosing the||
|internal control|Self-evaluation report of internal control for year of 2013 of Shenzhen|
|self-assessment report, full|Textile (Holdings) Co., Ltd.. published on www .cninfo.com.cn|
|text||

V.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, 2013.|
|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.||
|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, 2013.||
|Peking Certified Public Accountants(Special General Partnership)||
|Chinese C.P.A.||
|Xiao Yi||
|March 27, 2014 Chinese C.P.A.||
|Pan Zhongmin||
|Date of disclosing the internal||
||March 29, 2014|
|control audit report, full text||
|Index of disclosing the||
||Audit reort of internal control for year of Peking Certified Public Accountants|
|internal control audit report,||
||(QXSZ(2014)No. 1243 . on www .cninfo.com.cn|
|full text||

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
VI. Establishment and implementation of the Responsibility investigation system for serious Errors in the Annual Report
The company has abided by the laws, rules and regulations, and the regular documents such as “Corporate Law”, “Accounting Law” and “Management Methods of Information Disclosure of Listed Companies”, established “Responsibility Claim System on Significant Error in Information Disclosure of Annual Report”, defined the responsibility identification and claim on significant error in information disclosure of the annual report, and stipulated that the responsible person will be treated strictly as per the provisions of this system in the event of the occurrence of significant accounting errors and omission. Due to the company strictly implements according to the system, there are no the occurrence of serious accounting errors correction, grave omission of information supplements, performance forecast amendments and other issues during the report period.
X. Financial Report
I. Audit report
|||
|-|-|
|Type of audit opinion|Standard Unqualified Audit Opinion|
|Date for signing the auditor’s reporat|March 27, 2014|
||Peking Certified Public Accountants（Special General|
|Name of audit firm||
||Partnership）|
|Name|Xiao Yi, Pan Zhongmin|

Auditor’s Report
Qin Xin Shen Zi(2014)]No. 1242. 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, 2013, and the Parent Company and Consolidated profit 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 .
I. 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.
II. 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 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.
III. Audit opinion
In our opinion, the financial statements of the Company Wharf present fairly, in all material
respects, thecompany’s and consolidated financial position as of 31 December 2013, 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
March 27,2014 Chinese C.P.A.
Pan Zhongmin
II. Financial Statements
Statement in Financial Notes are carried in RMB/CNY
1.Consolidated Balance sheet
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Unit：RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|949,317,213.07|232,417,736.06|
|Settlement provision|||
|Outgoing call loan|||
|Trading financial assets|||

||||
|-|-|-|
|Bill receivable|19,031,515.21|20,139,334.03|
|Account receivable|138,422,205.01|100,941,342.96|
|Prepayments|21,031,777.16|12,711,147.09|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance|||
|contracts receivable|||
|Interest receivable|6,226,199.59||
|Dividend receivable|||
|Other account receivable|140,270,310.59|51,069,068.33|
|Repurchasing of financial assets|||
|Inventories|203,810,815.20|143,258,151.49|
|Non-current asset due in 1 year|||
|Other current asset|100,000,000.00||
|Total of current assets|1,578,110,035.83|560,536,779.96|
|Non-current assets：|||
|Loans and payment on other’s|||
|behalf disbursed|||
|Disposable financial asset|41,829,021.22|70,159,993.69|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity|||
||48,715,143.22|48,094,489.26|
|investment|||
|Property investment|147,480,587.85|154,761,895.71|
|Fixed assets|878,246,098.01|949,164,677.21|
|Construction in progress|62,917,215.99|11,576,523.39|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|43,878,071.37|46,162,461.69|
|R & D petrol|||
|Goodwill|9,614,758.55|9,614,758.55|
|Long-germ expenses to be|||
||835,279.18|1,005,588.08|
|amortized|||
|Differed income tax asset|40,133,524.69|29,583,499.67|
|Other non-current asset|||
|Total of non-current assets|1,273,649,700.08|1,320,123,887.25|
|Total of assets|2,851,759,735.91|1,880,660,667.21|
|Current liabilities|||
|Short-term loans||40,153,434.48|
|Loan from Central Bank|||
|Deposit received and hold for|||
|others|||
|Call loan received|||
|Trade off financial liabilities|||
|Bill payable|||
|Account payable|108,297,855.85|101,232,698.62|
|Advance payment|31,672,395.99|25,663,352.59|
|Selling of repurchased financial|||
|assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|35,273,275.68|25,914,720.85|
|Tax payable|-77,213,236.39|-67,845,188.78|
|Interest payable|23,970,903.52|15,091,123.12|
|Dividend payable|||
|Other account payable|120,089,826.28|168,127,716.36|

||||
|-|-|-|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|242,091,020.93|308,337,857.24|
|Non-current liabilities：|||
|Long-term loan|200,000,000.00|200,000,000.00|
|Bond payable|||
|Long-term payable|||
|Special payable|||
|Expected liabilities|||
|Differed income tax liability|60,228,995.93|12,596,833.13|
|Other non-current liabilities|51,593,141.94|56,714,022.45|
|Total of non-current liabilities|311,822,137.87|269,310,855.58|
|Total of liability|553,913,158.80|577,648,712.82|
|Owners’ equity|||
|Share capital|506,521,849.00|336,521,849.00|
|Capital reserves|1,606,525,169.42|828,913,137.67|
|Less：Shares in stock|||
|Special reserves|||
|Surplus reserves|59,801,735.10|36,607,659.49|
|Common risk provision|||
|Undistributed profit|124,997,823.59|100,969,308.23|
|Different of foreign currency|||
|translation|||
|Total of owner’s equity belong to|||
||2,297,846,577.11|1,303,011,954.39|
|the parent company|||
|Minority shareholders’ equity|||
|Total of owners’ equity|2,297,846,577.11|1,303,011,954.39|
|Total of liabilities and owners’|||
||2,851,759,735.91|1,880,660,667.21|
|equity|||

Legal representative：Wang Bin Person-in-charge of the accountingwork：Zhu Jun Person-in -charge of the accountingorgan：Jiang Xiaojun
2. Balance sheet of Parent Company
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Unit：RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|365,620,681.34|33,906,151.53|
|Trading financial assets|||
|Bill receivable|||
|Account receivable|26,603.36|1,520.00|
|Prepayments|2,266,272.00||
|Interest receivable|5,203,000.01||
|Dividend receivable|||
|Other account receivable|162,531,389.65|18,611,433.26|
|Inventories|||
|Non-current asset due in 1 year|||
|Other current asset|||
|Total of current assets|535,647,946.36|52,519,104.79|

||||
|-|-|-|
|Non-current assets：|||
|Disposable financial asset|41,829,021.22|70,159,993.69|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity|||
||1,822,271,651.30|1,064,734,607.06|
|investment|||
|Property investment|139,080,456.27|145,306,758.35|
|Fixed assets|29,101,578.28|31,796,996.71|
|Construction in progress|22,003,109.19|9,416,319.19|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|2,050,543.64|2,651,093.96|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be|||
|amortized|||
|Differed income tax asset|5,299,239.57|5,539,715.63|
|Other non-current asset|||
|Total of non-current assets|2,061,635,599.47|1,329,605,484.59|
|Total of assets|2,597,283,545.83|1,382,124,589.38|
|Current liabilities|||
|Short-term loans|||
|Trade off financial liabilities|||
|Bill payable|||
|Account payable|411,743.57|411,743.57|
|Advance payment|639,024.58|639,024.58|
|Employees’ wage payable|6,012,522.26|5,899,315.45|
|Tax payable|4,076,158.54|1,608,258.72|
|Interest payable|||
|Dividend payable|||
|Other account payable|59,810,489.72|74,456,509.51|
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|70,949,938.67|83,014,851.83|
|Non-current liabilities：|||
|Long-term loan|||
|Bond payable|||
|Long-term payable|||
|Special payable|||
|Expected liabilities|||
|Differed income tax liability|60,228,995.93|12,557,914.13|
|Other non-current liabilities|||
|Total of Non-current liabilities|60,228,995.93|12,557,914.13|
|Total of liability|131,178,934.60|95,572,765.96|
|Owners’ equity|||
|Share capital|506,521,849.00|336,521,849.00|
|Capital reserves|1,597,942,187.63|820,330,155.88|
|Less：Shares in stock|||
|Special reserves|||
|Surplus reserves|59,801,735.10|36,607,659.49|
|Provision of general risk|||
|Undistributed profit|301,838,839.50|93,092,159.05|
|Different of foreign currency|||
|translation|||

||||
|-|-|-|
|Total of owners’ equity|2,466,104,611.23|1,286,551,823.42|
|Total of liabilities and owners’|||
||2,597,283,545.83|1,382,124,589.38|
|equity|||

Legal representative：Wang Bin Person-in-charge of the accountingwork：Zhu Jun Person-in -charge of the accountingorgan：Jiang Xiaojun
3.Consolidated Profit Statement
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Unit：RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|1,131,098,580.37|845,114,483.38|
|Incl：Business income|||
||1,131,098,580.37|845,114,483.38|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|1,311,276,018.26|958,686,543.64|
|Incl：Business cost|||
||1,087,938,001.98|809,070,880.87|
|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|8,268,522.42|7,745,312.89|
|Sales expense|11,201,842.67|8,566,463.34|
|Administrative expense|143,098,049.02|124,751,094.63|
|Financial expenses|-27,343,517.20|-389,710.01|
|Asset impairment loss|88,113,119.37|8,942,501.92|
|Add：Gains from change of fir|||
|value （“-”for loss）|||
|Investment gain（“-”for loss）|||
||258,048,643.57|7,428,039.19|
|Incl: investment gains from|||
||1,145,653.96|1,177,855.69|
|affiliates|||
|Gains from currency exchange|||
|（“-”for loss）|||
|III. Operational profit（“-”for loss|||
||77,871,205.68|-106,144,021.07|
|Add：Non-business income|||
||24,218,052.93|11,818,453.86|
|Less：Non business expenses|||
||70,795.78|3,333,933.97|
|Incl ： Loss from disposal of|||
||55,689.54|20,497.40|
|non-current assets|||
|IV.Total profit(“-”for loss)|102,018,462.83|-97,659,501.18|
|Less：Income tax expenses|||
||54,795,871.86|-16,670,613.59|
|V. Net profit（“-”for net loss）|||
||47,222,590.97|-80,988,887.59|
|Including: Net profit realized by|||
|the entity taken over before the|||
|takover|||
|Net profit attributable to the|||
||47,222,590.97|-80,988,887.59|
|owners of parent company|||

||||
|-|-|-|
|Minority shareholders’ equity|||
|VI. Earnings per share：|||
||--|--|
|（I）Basic earnings per share|||
||0.1|-0.24|
|(II)Diluted earnings per share|0.1|-0.24|
|VII. Other comprehensive income|-14,138,969.10|14,372,248.37|
|VIII. Total comprehensive income|33,083,621.87|-66,616,639.22|
|Total comprehensive income|||
|attributable to the owner of the|33,083,621.87|-66,616,639.22|
|parent company|||
|Total comprehensive income|||
|attributable minority shareholders|||

Legal representative：Wang Bin Person-in-charge of the accountingwork：Zhu Jun Person-in -charge of the accountingorgan：Jiang Xiaojun
4. Profit statement of the Parent Company
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Unit：RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|60,997,241.70|58,769,828.08|
|Lessl：Business cost|||
||13,161,491.83|14,264,055.74|
|Business tax and surcharge|5,751,659.10|4,893,464.06|
|Sales expense|||
|Administrative expense|35,101,147.04|35,666,282.31|
|Financial expenses|-6,711,015.47|-399,149.34|
|Asset impairment loss|10,427,140.36|1,563,241.42|
|Add：Gains from change of fir|||
|value （“-”for loss）|||
|Investment gain（“-”for loss）|||
||286,123,123.54|6,354,399.89|
|Incl: investment gains from|||
||1,145,653.96|1,177,855.69|
|affiliates|||
|II. Operational profit（“-”for loss）|||
||289,389,942.38|9,136,333.78|
|Add：Non-business income|||
||5,315,825.02||
|Less：Non- business expenses|||
||53,829.32||
|Incl：Loss from disposal of|||
||53,829.32||
|non-current assets|||
|III.Total profit(“-”for loss)|294,651,938.08|9,136,333.78|
|Less：Income tax expenses|||
||62,711,182.02|2,186,801.07|
|IV. Net profit（“-”for net loss）|||
||231,940,756.06|6,949,532.71|
|V. Earnings per share：|||
||--|--|
|（I）Basic earnings per share|||
|(II)Diluted earnings per share|||
|VI. Other comprehensive income|-14,138,969.10|14,372,248.37|
|VII. Total comprehensive income|217,801,786.96|21,321,781.08|

Legal representative：Wang Bin Person-in-charge of the accountingwork：Zhu Jun Person-in -charge of the
accountingorgan：Jiang Xiaojun
5. Consolidated Cash flow statement
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Unit：RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating|||
|activities|||
|Cash received from sales of goods|||
||1,124,799,558.97|752,086,541.93|
|or rending of services|||
|Net increase of customer deposits|||
|and capital kept for brother|||
|company|||
|Net increase of loans from central|||
|bank|||
|Net increase of inter-bank loans|||
|from other financial bodies|||
|Cash received against original|||
|insurance contract|||
|Net cash received from|||
|reinsurance business|||
|Net increase of client deposit and|||
|investment|||
|Net increase of trade financial|||
|asset disposal|||
|Cash received as interest,|||
|processing fee and commission|||
|Net increase of inter-bank fund|||
|received|||
|Net increase of repurchasing|||
|business|||
|Tax returned|77,891,316.70|43,405,458.48|
|Other cash received from business|||
||38,667,292.41|37,639,985.60|
|operation|||
|Sub-total of cash inflow|1,241,358,168.08|833,131,986.01|
|Cash paid for purchasing of|||
||1,239,755,592.08|829,125,165.84|
|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|||
||115,576,385.53|81,537,956.32|
|staffs|||
|Taxes paid|30,300,210.59|35,395,205.57|
|Other cash paid for business|||
||42,452,185.95|42,225,220.24|
|activities|||
|Sub-total of cash outflow from|||
||1,428,084,374.15|988,283,547.97|
|business activities|||
|Cash flow generated by business|||
||-186,726,206.07|-155,151,561.96|
|operation, net|||
|II.Cash flow generated by|||
|investing|||
|Cash received from investment|51,667,395.11|3,712,444.20|

||||
|-|-|-|
|retrieving|||
|Cash received as investment gains|5,399,313.12|3,671,006.73|
|Net cash retrieved from disposal|||
|of fixed assets, intangible assets,|5,317,275.36|471,624.41|
|and other long-term assets|||
|Net cash received from disposal|||
|of subsidiaries or other|114,040,879.24||
|operational units|||
|Net cash received from disposal|||
|of subsidiaries or other|355,573,057.52|1,583,190.00|
|operational units|||
|Sub-total of cash inflow due to|||
||531,997,920.35|9,438,265.34|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets and|107,759,401.86|127,989,028.85|
|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|||
||450,000,000.00||
|activities|||
|Sub-total of cash outflow due to|||
||557,759,401.86|127,989,028.85|
|investment activities|||
|Net cash flow generated by|||
||-25,761,481.51|-118,550,763.51|
|investment|||
|III.Cash flow generated by|||
|financing|||
|Cash received as investment|965,380,350.00||
|Incl: Cash received as investment|||
|from minor shareholders|||
|Cash received as loans|73,096,580.08|40,153,434.48|
|Cash received from bond placing|||
|Other financing –related ash|||
|received|||
|Sub-total of cash inflow from|||
||1,038,476,930.08|40,153,434.48|
|financing activities|||
|Cash to repay debts|106,443,824.54||
|Cash paid as dividend, profit, or|||
||1,022,777.54|21,206.63|
|interests|||
|Incl: Dividend and profit paid by|||
|subsidiaries to minor shareholders|||
|Other cash paid for financing|||
||1,255,875.50|2,373,473.65|
|activities|||
|Sub-total of cash outflow due to|||
||108,722,477.58|2,394,680.28|
|financing activities|||
|Net cash flow generated by|||
||929,754,452.50|37,758,754.20|
|financing|||
|IV. Influence of exchange rate|||
|alternation on cash and cash|-542,567.67|-684,317.09|
|equivalents|||
|V.Net increase of cash and cash|||
||716,724,197.25|-236,627,888.36|
|equivalents|||
|Add: balance of cash and cash|||
|equivalents at the beginning of|227,189,754.43|463,817,642.79|
|term|||
|VI.Balance of cash and cash|943,913,951.68|227,189,754.43|

||
|-|
|equivalents at the end of term|

Legal representative：Wang Bin Person-in-charge of the accountingwork：Zhu Jun Person-in -charge of the accountingorgan：Jiang Xiaojun
6. Cash flow statement of the Parent Company
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Unit：RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating|||
|activities|||
|Cash received from sales of goods|||
||61,654,849.43|58,864,966.03|
|or rending of services|||
|Tax returned|||
|Other cash received from business|||
||43,276,242.72|12,657,653.01|
|operation|||
|Sub-total of cash inflow|104,931,092.15|71,522,619.04|
|Cash paid for purchasing of|||
||5,980,247.24|5,343,628.46|
|merchandise and services|||
|Cash paid to staffs or paid for|||
||19,131,450.08|19,183,009.63|
|staffs|||
|Taxes paid|15,524,353.58|10,708,112.77|
|Other cash paid for business|||
||126,106,086.99|25,554,110.89|
|activities|||
|Sub-total of cash outflow from|||
||166,742,137.89|60,788,861.75|
|business activities|||
|Cash flow generated by business|||
||-61,811,045.74|10,733,757.29|
|operation, net|||
|II.Cash flow generated by|||
|investing|||
|Cash received from investment|||
||51,667,395.11|3,712,444.20|
|retrieving|||
|Cash received as investment gains|30,846,260.47|3,140,300.00|
|Net cash retrieved from disposal|||
|of fixed assets, intangible assets,|5,312,275.36||
|and other long-term assets|||
|Net cash received from disposal|||
|of subsidiaries or other|117,034,603.00||
|operational units|||
|Other cash receivable for|||
|investment activities|||
|Sub-total of cash inflow due to|||
||204,860,533.94|6,852,744.20|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets and|15,415,095.00|6,155,725.00|
|other long-term assets|||
|Cash paid as investment|760,000,000.00|108,163,070.03|
|Net cash received from|||
|subsidiaries and other operational|||
|units|||
|Other cash paid for investment|||
|activities|||
|Sub-total of cash outflow due to|||
||775,415,095.00|114,318,795.03|
|investment activities|||
|Net cash flow generated by|||
||-570,554,561.06|-107,466,050.83|
|investment|||

||||
|-|-|-|
|III.Cash flow generated byfinancing|||
|Cash received from absorbinginvestment|||
||965,380,350.00||
|Cash received as loans|||
|Cash received from bond placing|||
|Other financing –related ashreceived|||
|Sub-total of cash inflow fromfinancing activities|||
||965,380,350.00||
|Cash to repay debts|||
|Cash paid as dividend, profit, orinterests|||
|Other cash paid for financingactivities|||
||1,255,875.50|2,373,473.65|
|Sub-total of cash outflow due tofinancing activities|||
||1,255,875.50|2,373,473.65|
|Net cash flow generated byfinancing|||
||964,124,474.50|-2,373,473.65|
|IV. Influence of exchange rate|||
|alternation on cash and cash|-44,337.89|92.43|
|equivalents|||
|V.Net increase of cash and cashequivalents|||
||331,714,529.81|-99,105,674.76|
|Add: balance of cash and cash|||
|equivalents at the beginning of|33,906,151.53|133,011,826.29|
|term|||
|VI.Balance of cash and cashequivalents at the end of term|||
||365,620,681.34|33,906,151.53|

Legal representative：Wang Bin Person-in-charge of the accountingwork：Zhu Jun Person-in -charge of the accountingorgan：Jiang Xiaojun
7. Consolidated Statement on Change inOwners’ Equity
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Amount in this period
Unit：RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in this period||||||||||
||Owner’s equity Attributable to the Parent Company||||||||||
|||||||Commo|||Minor|Total of|
|Items|||Less:|Speciali|||Attribut||||
||Share|Capital|||Surplus|n risk|||sharehold|owners’|
||||Shares|zed|||able|Other|||
||Capital|reserves|||reserves|provisio|||ers’ equity|equity|
||||in stock|reserve|||profit||||
|||||||n|||||
||336,521|828,913,|||36,607,||100,969,|||1,303,011,|
|I.Balance at the end of last year|||||||||||
||,849.00|137.67|||659.49||308.23|||954.39|
|Add: Change of accounting|||||||||||
|policy|||||||||||
|Correcting of previous errors|||||||||||
|Other|||||||||||
|II.Balance at the beginning of|336,521|828,913,|||36,607,||100,969,|||1,303,011,|
|current year|,849.00|137.67|||659.49||308.23|||954.39|
||170,000|777,612,|||23,194,||24,028,5|||994,834,62|
|III.Changed in the current year|||||||||||
||,000.00|031.75|||075.61||15.36|||2.72|
|（I） Net profit|||||||47,222,5|||47,222,590|
||||||||90.97|||.97|
|（II）Other misc.income||-14,138,969.10||||||||-14,138,96|
|||||||||||9.10|
|||-14,138,969.10|||||47,222,5|||33,083,621|
|Total of (I) and (II)|||||||||||
||||||||90.97|||.87|
|(III) Investment or decreasing|170,000|791,751,||||||||961,751,00|

|||||||
|-|-|-|-|-|-|
|of capital by owners|,000.00|000.85|||0.85|
||170,000|791,751,|||961,751,00|
|1. Capital inputted by owners||||||
||,000.00|000.85|||0.85|
|2．Amount of shares paid and||||||
|accounted as owners’ equity||||||
|3. Other||||||
|（IV）Profit allotment|||23,194,|-23,194,||
||||075.61|075.61||
||||23,194,|-23,194,||
|1.Providing of surplus reserves||||||
||||075.61|075.61||
|2.Providing of common risk||||||
|provisions||||||
|3．Allotment to the owners (or||||||
|shareholders)||||||
|4．Other||||||
|(V) Internal transferring of||||||
|owners’ equity||||||
|1. Capitalizing of capital||||||
|reserves (or to capital shares)||||||
|2. Capitalizing of surplus||||||
|reserves (or to capital shares)||||||
|3．Making up losses by||||||
|surplus reserves.||||||
|4. Other||||||
|(VI) Special reserves||||||
|1. Provided this year||||||
|2．Used this term||||||
|（VII）Other||||||
|IV. Balance at the end of this|506,521|1,606,52|59,801,|124,997,|2,297,846,577.11|
|term|,849.00|5,169.42|735.10|823.59||

 Amount in last year
Unit：RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year||||||||||
||Owner’s equity Attributable to the Parent Company||||||||||
|||||||Commo|||Minor|Total of|
|Items|||Less:|Speciali|||Attribut||||
||Share|Capital|||Surplus|n risk|||sharehold|owners’|
||||Shares|zed|||able|Other|||
||Capital|reserves|||reserves|provisio|||ers’ equity|equity|
||||in stock|reserve|||profit||||
|||||||n|||||
||336,521|814,540,|||35,912,||182,653,|||1,369,628,|
|I.Balance at the end of last year|||||||||||
||,849.00|889.30|||706.22||149.09|||593.61|
|Add：Retrospective adjustment|||||||||||
|caused by merger of entities|||||||||||
|under common control|||||||||||
|Add: Change of accounting|||||||||||
|policy|||||||||||
|Correcting of previous errors|||||||||||
|Other|||||||||||
|II.Balance at the beginning of|336,521|814,540,|||35,912,||182,653,|||1,369,628,|
|current year|,849.00|889.30|||706.22||149.09|||593.61|
|\ III.Changed in the current||14,372,2|||694,953||-81,683,|||-66,616,63|
|year||48.37|||.27||840.86|||9.22|
|（I） Net profit|||||||-80,988,|||-80,988,88|
||||||||887.59|||7.59|
|（II）Other misc.income||14,372,2||||||||14,372,248|
|||48.37||||||||.37|
|||14,372,2|||||-80,988,|||-66,616,63|
|Total of (I) and (II)|||||||||||
|||48.37|||||887.59|||9.22|
|(III) Investment or decreasing|||||||||||
|of capital by owners|||||||||||
|1. Capital inputted by owners|||||||||||
|2．Amount of shares paid and|||||||||||
|accounted as owners’ equity|||||||||||

|||||||
|-|-|-|-|-|-|
|3. Other||||||
|（IV）Profit allotment|||694,953|-694,95||
||||.27|3.27||
||||694,953|-694,95||
|1.Providing of surplus reserves||||||
||||.27|3.27||
|2.Providing of common riskprovisions||||||
|3．Allotment to the owners (or||||||
|shareholders)||||||
|4．Other||||||
|(V) Internal transferring ofowners’ equity||||||
|1. Capitalizing of capitalreserves (or to capital shares)||||||
|2. Capitalizing of surplusreserves (or to capital shares)||||||
|3．Making up losses by||||||
|surplus reserves.||||||
|4. Other||||||
|(VI) Special reserves||||||
|1. Provided this year||||||
|2．Used this term||||||
|（VII）Other||||||
|IV. Balance at the end of this|336,521|828,913,|36,607,|100,969,|1,303,011,|
|term|,849.00|137.67|659.49|308.23|954.39|

 Legal representative：Wang Bin Person-in-charge of the accountingwork：Zhu Jun Person-in -charge of the accountingorgan：Jiang Xiaojun
8. Statement of change inowner’s Equity of the Parent Company
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Amount in this period
Unit：RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount in this periodLess: Common Total ofShare Capital Specialized Surplus AttributablShares in risk owners’Capital reserves reserves reserves e profitstock provision equity||||||||
||||Less:|||Commonriskprovision||Total of|
|Items|Share|Capital||Specialized|Surplus||Attributabl||
||||Shares in|||||owners’|
||Capital|reserves||reserves|reserves||e profit||
||||stock|||||equity|
||336,521,849.00|820,330,15|||36,607,659||93,092,159|1,286,551,|
|I.Balance at the end of last year|||||||||
|||5.88|||.49||.05|823.42|
|Add: Change of accounting|||||||||
|policy|||||||||
|Correcting of previous errors|||||||||
|Other|||||||||
|II.Balance at the beginning of|336,521,84|820,330,15|||36,607,659||93,092,159|1,286,551,|
|current year|9.00|5.88|||.49||.05|823.42|
||170,000,000.00|777,612,03|||23,194,075||208,746,68|1,179,552,|
|III.Changed in the current year|||||||||
|||1.75|||.61||0.45|787.81|
|（I） Net profit|||||||231,940,75|231,940,75|
||||||||6.06|6.06|
|（II）Other misc.income||-14,138,96||||||-14,138,96|
|||9.10||||||9.10|
|||-14,138,96|||||231,940,75|217,801,78|
|Subtotal of (I) and (II)|||||||||
|||9.10|||||6.06|6.96|
|(III) Investment or decreasing of|170,000,00|791,751,00||||||961,751,00|
|capital by owners|0.00|0.85||||||0.85|
||170,000,000.00|791,751,00||||||961,751,00|
|1. Capital inputted by owners|||||||||
|||0.85||||||0.85|
|2．Amount of shares paid and|||||||||
|accounted as owners’ equity|||||||||

|||||||
|-|-|-|-|-|-|
|3. Other||||||
|（IV）Profit allotment|||23,194,075|-23,194,07||
||||.61|5.61||
||||23,194,075|-23,194,07||
|1.Providing of surplus reserves||||||
||||.61|5.61||
|2.Providing of common risk||||||
|provisions||||||
|3．Allotment to the owners (or||||||
|shareholders)||||||
|4．Other||||||
|(V) Internal transferring of||||||
|owners’ equity||||||
|1. Capitalizing of capital||||||
|reserves (or to capital shares)||||||
|2. Capitalizing of surplus||||||
|reserves (or to capital shares)||||||
|3．Making up losses by surplus||||||
|reserves.||||||
|4. Other||||||
|(VI) Special reserves||||||
|1. Provided this year||||||
|2．Used this term||||||
|（VII）Other||||||
|IV. Balance at the end of this|506,521,84|1,597,942,|59,801,735|301,838,83|2,466,104,611.23|
|term|9.00|187.63|.10|9.50||

 Amount in last year
Unit：RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount in last year||||||||
||||Less:|Specializ||Common||Total of|
|Items|Share|Capital|||Surplus||Attributa||
||||Shares in|ed||risk||owners’|
||Capital|reserves|||reserves||ble profit||
||||stock|reserve||provision||equity|
|I.Balance at the end of last|336,521,|805,957,|||35,912,7||86,837,5|1,265,23|
|year|849.00|907.51|||06.22||79.61|0,042.34|
|Add: Change of accounting|||||||||
|policy|||||||||
|Correcting of previous|||||||||
|errors|||||||||
|Other|||||||||
|II.Balance at the beginning|336,521,|805,957,|||35,912,7||86,837,5|1,265,23|
|of current year|849.00|907.51|||06.22||79.61|0,042.34|
|III.Changed in the current||14,372,2|||694,953.||6,254,57|21,321,7|
|year||48.37|||27||9.44|81.08|
|（I） Net profit|||||||6,949,53|6,949,53|
||||||||2.71|2.71|
|（II）Other misc.income||14,372,2||||||14,372,2|
|||48.37||||||48.37|
|||14,372,2|||||6,949,53|21,321,7|
|Subtotal of (I) and (II)|||||||||
|||48.37|||||2.71|81.08|
|(III) Investment or|||||||||
|decreasing of capital by|||||||||
|owners|||||||||
|1. Capital inputted by|||||||||
|owners|||||||||
|2．Amount of shares paid|||||||||
|and accounted as owners’|||||||||
|equity|||||||||
|3. Other|||||||||
|（IV）Profit allotment|||||694,953.||-694,953.||
||||||27||27||

|||||||
|-|-|-|-|-|-|
|1.Providing of surplus|||694,953.|-694,953.||
|reserves|||27|27||
|2.Providing of common risk||||||
|provisions||||||
|3．Allotment to the owners||||||
|(or shareholders)||||||
|4．Other||||||
|(V) Internal transferring of||||||
|owners’ equity||||||
|1. Capitalizing of capital||||||
|reserves (or to capital||||||
|shares)||||||
|2. Capitalizing of surplus||||||
|reserves (or to capital||||||
|shares)||||||
|3．Making up losses by||||||
|surplus reserves.||||||
|4. Other||||||
|(VI) Special reserves||||||
|1. Provided this year||||||
|2．Used this term||||||
|（VII）Other||||||
|IV. Balance at the end of this|336,521,|820,330,|36,607,6|93,092,1|1,286,55|
|term|849.00|155.88|59.49|59.05|1,823.42|

 Legal representative：Wang Bin Person-in-charge of the accountingwork：Zhu Jun Person-in -charge of the accountingorgan：Jiang Xiaojun
III.Basic Information of the Company
1. Enterprise registration address, organization mode and headquarter address.
The company was previously the Shenzhen Textile Industry Company, on April 13, 1994, approved by the Letter(1994)No.15 issued by Shenzhen Municipal People's Government, the Company was restructured and named as Shenzhen Municipal Textile (Group) Co., Ltd. In the same year, approved by the (1994) No.19 file of Shenzhenshi, the shares of the company were listed in Shenzhen Stock Exchange. The Company has got the corporate business certification of Shensizi No. 440301105031014, Registration address and headquarter address are 6/F,Shenfang Building, Huaqiang Road. North, Futian District, Shenzhen.
2.Enterprise’s business nature and major business operation.
At present, the Company is mainly engaged in high-tech industry focusing onR&D, production and marketing of polarizers for liquid crystal display, management of properties in bustling business districts of Shenzhen and reserved high-class textile and garment business.
3. Names of parent company and group parent company.
Thecompany’s parent company is Shenzhen Investment Holdings Co., Ltd.
4. The reporting person of the approval of financial statements and the reporting date of the approval of financial statements.
The reporting person of the approval of financial statements of the company: Board of Directors of the Company
The reporting date of the approval of financial statements of the Company: March 27, 2014
II．Principal accounting policies, accounting estimates and early errors
1. Basis for the preparation of financial statements
On the basis of continuous operation, in accordance with actual transactions and events, the company carried
out confirmation and measurement in accordance with "Accounting Standards for Business Enterprises - Basic Standards" issued by the Ministry of Finance and other various accounting standards, on the basis of it, the Company prepared the financial statements.
2. Statement on complying with corporate accounting standards
Based on the requirement that the financial reports edited according to above-mentioned editing conditions is accordance with enterprise accounting standards, the company reflected its financial condition on December 30, 2013 truly and completely and business result in 2013 and cash flow information, etc.
3. Fiscal year
A calendar year, that is, from January 1 to December 31 is a fiscal year.
4. Accounting standard money
Accounting standard money is RMB. Referring to notes to unless separately stated. Currency: RMB.
5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprise merger under samecontrol：
For the enterprise merger under same control, the assets and liabilities obtained by the merging party from enterprise merger was measured according to book value of the merged party on the merger date. The capital reserve was adjusted according to the deference between the book value of net assets obtained by the merging party and the book value of merger price paid (or the total book value of shares issued); if capital surplus was not big for the offset, the retained earnings should be adjusted. Amalgamating parties reckon every direct relate expenses produced in enterprise consolidation including auditing expense, valuation expense and legal service expense paid on enterprise consolidation to current profit and loss when those expenses produced. On parent subsidiary relationship formed via enterprise consolidation , parent company is responsible of editing amalgamation property balance sheet, amalgamation profit statement and amalgamation cash flow meter of amalgamation date. In amalgamation property balance sheet, every asset and liability of amalgamated parties is measured according to its book value. For the accounting policy adopted by the amalgamated parties is not accordance with amalgamating party, and it is adjusted according to criterions, the book value after adjusted is measured. The amalgamating profit chart contains income, expenses and profit happened from the beginning of amalgamation and amalgamating date. The realized net profit before amalgamation from the amalgamated party shall be reflected on the amalgamating profit chart. Amalgamation cash flow meter contains the cash flow of every party in amalgamation from the beginning of amalgamation and amalgamating date.
（2）Enterprise merger under differentcontrol：
For the enterprise merger under same control, the merger cost was the assets for the obtaining the control right of the party being purchased on the purchase date, the liabilities happened or undertook and the fair value of the equity securities. For the enterprise merger realized through a number of transactions, the merger cost was the sum of all individual transaction. All the direct costs and related costs for the enterprise merger were included in the cost of enterprise merger. The purchase date referred to date that the company had the control right of the party being purchased. The difference between merger cost over the fair value of identifiable net value obtained from the merger should be confirmed as goodwill. The difference between the identifiable net assets of the party being purchased obtained in the merger and the amount of identifiable net assets of the party being purchased obtained in the merger should be included in the loss and gain of the current period. On parent subsidiary relationship formed via enterprise consolidation , parent company is responsible of editing amalgamation property balance sheet on amalgamation date; the acquired every identified asset, liability acquired from enterprise consolidation is listed via fair value.
6. The compiling method of combined financial statement
（1）Combined financial statements has financial statements and other related material of every subsidiary company within combined financial statements as combination basis, adjust long-term equity investment of subsidiary company according to equity method, compensate investment, trade activities of the company and every subsidiary company within the combined financial statements, calculate few shareholder profit and loss and few shareholder rights and interests. Then compile the financial statements after those activities.
（2）In compiling, if the accounting policy of any subsidiary company within the combination scope is not accordance with it of the company, adjust it according to the accounting policy of the company, then combine.（3） On the subsidiary company acquired from enterprise consolidation under same controlling, treat amalgamation produced at the beginning, bring its assets, liabilities, business result and cash flow into financial statements at the beginning of the amalgamation.
（4） On the enterprise consolidation under same controlling, the net income and loss of the amalgamated
parties is reckoned into nonrecurring profit and loss before amalgamation and separately listed in submitting
financial statement.
（5） Recombination belongs to enterprise non-combination issue under same company controller, when the combined parties combine the assets amount of last account year end, business income of last accounting year or total profit of last accounting year, if it reaches or excesses20% of relative item of the company, compile income statements at the beginning of the combination period.
（6） For the subsidiary company acquired from enterprise consolidation under non-same controlling, in compiling combination statements, adjust individual financial statements based on fair value of identified net assets at the purchasing date.
7.Recognition Standard of Cash& Cash Equivalents
Cash means the cash on hand and deposit for payment at any moment.
Cash equivalent refers to the investment with few value alteration risks that the company holds the cash with the characters of short term (generally means 3 months from the purchasing date), strong fluidity, easy transferring to known amount.
8.Foreign Currency Transaction and Conversion for foreign financial statement
（1）Conversion for Foreign currency operations
The foreign currency operation is translated into recording currency according to approximate exchange rate at sight of business happening date. The approximate exchange rate at sight refers to the exchange rate at the beginning of the business happening month.
On balance sheet date, dispose foreign currency monetary item and foreign currency non-monetary item according to the following regulations:
A. Foreign currency monetary item is translated adopting exchange rate at sight of balance sheet date. The balance of exchange produced from the difference between exchange rate at sight at balance sheet date and initial confirmation or exchange rate at sight at former balance sheet date shall be reckoned into profit and loss at current period.
B. Foreign currency non-monetary item measured with historic cost, adopt exchange rate at sight on business happening date and not to change recording currency (amount).
C. Foreign currency non-monetary item measured by fair value adopts exchange rate at sight of fair value confirmation date. The difference between recording currency after translating and the original recording currency is disposed as fair value alteration and reckoned into profit and loss at current period.
（2） Conversion for foreign financial statement
The subsidiaries of the company whose standard currency was foreign currency, all asset and liability items should be converted into the standard money of parent company according to the spot rate on the balance sheet date, and all theowners’ equity items, accept for "retained profits", should be converted into the standard money of parent company according to the spot rate on the balance sheet date. The income and cost items in the profit statement should be converted into the standard money of parent company according to the spot rate during the period of consolidating financial statements. The conversion differences due to different exchange rate, should be reflected by opening the "foreign currency conversion difference statements" in RMB. And open the "foreign currency statements conversion differences" in cash flow statement in RMB.
9. Financial instruments
(1) Classification of financial instruments:
Financial assets can be divided into: the financial assets which measured by fair value and its changes are included in the current loss and gain (including transactional financial assets and the financial assets which measured by fair value and its changes are included in the current loss and gain), the expired investments, loans and receivables held, and financial assets to be sold, the four categories;
(2) Measurement of financial assets
A. The initial recognition financial assets are accounted in accordance with fair values. For the financial assets which measured by fair value and its changes are included in the current loss and gain, the relevant transactional costs should be included in the current loss and gain; for other financial assets, the relevant transactional costs should be included in the initial recognition amount.
B. The Company makes follow-up measurement on financial assets according to fair value, the transactional cost to deal with the financial assets which may happen in the future will not be deducted. But, except the following situations:
(a). The expired investments and loans held, should be measured according to amortized costs by the actual
interest method. Accounts receivable, in accordance with the purchase contract or agreement price receivable
amount as initial confirmation, when recovery or disposal the account receivable, the price difference between the
carrying amount of the receivable included in the current profits and losses
(b) The equity tool investments which do not have quotation in market and their fair value can not be reliably measured, and the derivative financial assets which are related to the equity tool and are to be delivered to the equity tool to account, should be measured according to costs.
(3) Determination of fair value of financial assets:
A, The financial assets which exist in the market, the quotation in the market will be determined as fair value; B, The financial assets which do not exist in the market, adopt valuation techniques to determine the fair value. The results by the valuation techniques show the transaction prices which may be used in fair transactions on the valuation day.
(4)Recognition basis for transferred financial assets
The company will transfer almost all risk and earnings into the transferred parties on the ownership of financial assets or when the controlling on financial assets is given up, it will expire confirming the financial assets.（5）Providing of impairment provision on financial assets
On the balance sheet date, carry out inspection on the book value of financial assets which are not included in the financial assets measured according to fair value and its changes are include in the current loss and gain. If there are objective evidence showing that the financial assets have impairment, the provision for impairment should be accounted. The objective evidences which show the impairment of financial assets include the following items: A. The issuing party or the debtor had serious financial difficulties;
B. The debtor violated the terms in the contract, such as the payment of interest or principal had default or delayed; C. For the consideration in economy and law, the Company made concessions to the debtor in difficulties; D. The debtor was likely to collapse or carry out other financial restructuring;
E. The issuing party had major financial difficulties, and the financial assets can not be traded in market;
F. The debtor had major adverse changes in technology, market, economic and legal environment, and the Company was may not be able to recover the investment costs;
G. The fair values of the equity tool investments had serious and non-temporary decline;
H. Other objective evidences which show the impairment of financial asset
(6)Measurement of impairment losses of financialassets：
A.The financial assets measured according to fair value and its changes are include in the current loss and gain require no test of impairment;
B.The measurement of impairment loss of expired investments: Account provision for impairment according to the difference of the value of future cash flow lower than the book value;
C.The confirmation standard and withdrawal method of doubtful accounts receivable: when single item amount is much, separately practice deduction testing and confirm its depreciation loss and withdrawal doubtful accounts according to the difference between future cash flow and its book value; when single item amount is not much, the non-decreased accounts receivale via testing, aging analysis method shall be adopted, depreciation loss is confirmed and withdrawal doubtful accounts according to aging of accounts of accounts receivables and regulated withdrawal ration; when single amount is not much, while the accounts receivables and regulated withdrawal ration; when single amount is not much, while the accounts receivables with bigger risk after combination according to credit risk nature and withdrawal doubtful accounts. The non-decreased accounts receivable via testing, aging analysis method shall be adopted, depreciation loss is confirmed according to aging of accounts of accounts receivables and regulated withdrawal ration.
D. Judgment of impairment of available-for-sale financial assets: if there is a significant decline in the fair value of available-for-sale financial assets, more than30%of its cost of ownership, expect this downward trend is temporary (duration more than 12 months), depends on the estimated balance of the book value and the present value of future cash flows to decide the provision for impairment.
10. Accounts receivable
（1）Bad debt provision on receivable accounts with major amount individually
Criteria and norm of The Client Identifies single amount of accounts receivable that is not less than RMB
individual significance 1 million as account receivable that are individually significant in amount. The Client Identifies single amount of accounts receivable that is not less than RMB 0.5 million as account receivable that are individually significant in amount.
Measurement of If it is objectively evidential that a receivable of individual significance has impairment allowances impaired, the impairment loss shall be recognized based on the difference of the for receivables of book values higher than the present value of future cash flows.
individual significance
（2）Accounts receivable belong to recognition of impairment allowances bygroup：
Basis of group
Account’s age group The classified according shall be recognized based on theaccounts’ age Method for recognition of impairment allowances by group
Adopt the age analysis method. Method for recognition of impairment
The age analysismethod：
||
|-|
|% for accounts receivable|
|5.00|
|10.00|
|30.00|
|50.00|

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

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

（2）Change of accounting estimations
Is there any change in accounting estimations in the report period
|||
|-|-|
|Approval process|Name of Affected Projectreport|

26. Correction of accounting errors in previous period
（1）Retrospective restatement
Is there any retrospective restatement on the accounting error with previous periods done in the report term
|||
|-|-|
|Approval ofdisposition|The name of each affected project of thecomparative period|

（2）Future adoption method
Is there any future adoption method apply able to accounting errors with previous period, found in the report
||
|-|
|Approval of disposition|

III.Taxes of the Company
1. Main taxes categories and tax rate
||
|-|
|Tax references|
|Incomes from product sales|
|Providing labor services, real estate sales, the transfer ofintangible assets|
|VAT, sales tax, turnover tax, etc|
|Taxable income|

2. Tax preference and approval file
(1)Shenzhen Shengbo Optoelectronic Technology Co., Ltd., the subsidiary company of our company, has been qualified as national high-tech enterprise since 2013 ,High-tech and enterprise certificate No.: GF201344200044 ,The certificate is valid for three years, The enterprise income tax rate of this year is15%.(2）In accordance with relevant provisions of the Notice of Ministry of Finance, General Administration of Customs and State Taxation Administration Regarding Tax Preference Policies for Further Supporting the Development of New-type Display Device Industry (Cai Guan Shui (2012) No. 16), and the Notice of Printing and Issuing the Scope of Imported Materials of Enterprises Manufacturing Colorful Light Filtering Coating and Polarizer Sheets and the List of the First Group of Enterprises Enjoying Preferential Policies (Cai Guan Shui (2012) No. 53), Shenzhen Shengbo Optoelectronic Technology Co., Ltd. manufactured key materials and parts for the upstream industry of new-type display devices including colorful light filter coating and polarizer sheet that comply with the planning for 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 production 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 Imported Materials of Enterprises Manufacturing New-type Display Device Panels. (cid:13)
IV. Enterprise consolidation and combined financial statements
1. Subsidiary
（1）Subsidiary obtained through establishment or investment
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Subsidiarytype|Registrationplace|Business|Registeredcapital|Business scope|Actualcapitalamountsof theend|Otherprojectsbalanceessentiallyfrom netinvestment tosubsidiary|Holdingproportion(%)|Proportion ofvotingrights(%)|Whetherconsolidationofreportform|Interest ofminorityshareholder|Amountusedtowritedownlostincludedinminorityshareholderinterest|
|Wholly-ownedsubsidiary|Shenzhen|Domesticcommerce,materials supplyandsales|2,360,000.00|Domestic commerce,Self Property lease|2,360,000.00||100.00|100.00|Yes|No||
|Wholly-ownedsubsidiary|Shenzhen|Accommodation,restaurants,businesscenter|10,005,300.00|Accommodation, restaurants, businesscenter; ticket consignment; PropertyManagement (required to obtain therelevant qualification certificate for theiroperations)|10,005,300.00||100.00|100.00|Yes|No||
|Wholly-ownedsubsidiary|Shenzhen|Propertymanagement|1,600,000.00|The Company property management|1,600,000.00||100.00|100.00|Yes|No||

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Subsidiarytype|Registrationplace|Business|Registeredcapital|Business scope|Actualcapitalamountsof theend|Otherprojectsbalanceessentiallyfrom netinvestment tosubsidiary|Holdingproportion(%)|Proportion ofvotingrights(%)|Whetherconsolidationofreportform|Interest ofminorityshareholder|Amountusedtowritedownlostincludedinminorityshareholderinterest|
|Wholly-ownedsubsidiary|Shenzhen|Production of fullyelectronicjacquardknittingwholeshape|25,000,000.00|Production of fully electronic jacquardknitting whole shape (without restrictionson the project); clothing, textiles andrelated accessories for buying and selling(excluding franchise, special control,proprietary products); operating importand export business (by "Import andExport Enterprise QualificationCertificate" deep free trade Certificate ZiNo. 2002-339 tube business); industrialprojects (the specific items to be declaredseparately).|25,000,000.00||100.00|100.00|Yes|No||
|Wholly-ownedsubsidiary|Shenzhen|Operating importandexportbusiness|5,000,000.00|Operating import and export business (thespecific approval by the relevant importand export business handled)|5,000,000.00||100.00|100.00|Yes|No||
|Wholly-owned|Hongkong|PolaroidSales|HKD10,000.00||||100.00|100.00|Yes|No||

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Subsidiarytype|Registrationplace|Business|Registeredcapital|Business scope|Actualcapitalamountsof theend|Otherprojectsbalanceessentiallyfrom netinvestment tosubsidiary|Holdingproportion(%)|Proportion ofvotingrights(%)|Whetherconsolidationofreportform|Interest ofminorityshareholder|Amountusedtowritedownlostincludedinminorityshareholderinterest|
|subsidiary||||||||||||

（2）The company has no subsidiary company acquired via enterprise consolidation under same controlling.
（3）The company has no subsidiary company acquired via enterprise consolidation under same controlling.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Subsidiarytyle|RegistrationPlace|Businesscharacter|Registrationcapital|Scope of business|Actual capitalamounts ofthe end|Otherprojectsbalanceessentiallyfrom netinvestmenttosubsidiary|Holdingproportion(%)|Proportionofvotingrights(%)|Whetherconsolidation ofreportform|Interestofminorityshareholder|Amountused towritedownlostincluded inminorityshareholderinterest|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|LimitedLiabilityCompany|Shenzhen|Production andsales ofpolarizer|RMB300million|Wholesale, manufacturing andprocess various specificationsmaterials and apparatus ofpolarizer, LCD; import andexport business (except projectsinhibited by law, administrativeregulation, State Department),the limited projects shall bemanaged with the permission|RMB300 million|100.00|100.00|Yes|No|

2. Changes of combination scope at current period
（1）No new subsdiary included in the consolidated financial statements of changes of Combination scope
At reporting period.
（2）subsdiary no longer included in the consolidated financial statements of changes of combination
scope at reporting period
The company has signed the “Transfer Contract of State-owned Property Right of Enterprise” with Shenzhen Herun Jewelry Co., Ltd. on December 11, 2013. After that, the company shall make auction and transfer the holding100% equity of Shenzhen Jinlan Decorative Articles Industrial Co.,Ltd (Jinlan) to Shenzhen Herun Jewelry Co., Ltd. at the price of RMB220,000,000.00. In December 2013, the company has received55% of the transferring payment of the equity, namely RMB 121,000,000.00, conducted the corresponding procedures of transferring property right and elected the Board of Directors of Jinlan Company. So, the annual profit statement and the cash flow statement in 2013 of Jinlan Company have been listed into the consolidated financial statements, and the balance sheetshaven’t been recorded into the consolidated financial statements on December 31, 2013.
3 No longer included in the consolidation scope
||
|-|
|desposal daily net assets|
|9,015,849.62|

V. Notes of consolidated financial statement
1.Monetary Capital
||||||
|-|-|-|-|-|
|Year-end balance|||||
|Foreigncurrency|Exchange rate|RMB|Foreign currency|Exchangerate|
|||46,811.51|||
|450.64|0.78623|354.31|4,226.94|0.81085|
|6,284.10|6.0969|38,313.53|6,784.10|6.2855|
|1,000.00|0.05777|57.77|1,000.00|0.073049|
|||85,537.12|||
|||898,251,353.68|||
|5,685,060.56|0.78623|4,469,716.78|3,032,356.82|0.81085|
|7,219,904.74|6.0969|44,019,037.21|2,073,931.29|6.2855|
|444,374.00|0.05777|25,671.93|394,658.00|0.073049|
|||946,765,779.60|||
|||72,450.03|||
|392,567.75|6.0969|2,393,446.32|||
||||14,088,785.00|0.073049|
||||29.84|8.3176|
|||2,465,896.35|||
|||949,317,213.07|||

（1）As of December 31,2013，monetary funds deposited abroad is HKD 477,387.24, equivalent to RMB
375,336.17 yuan; USD 2,642,595.85, equivalent to RMB 16,111,642.64 yuan, in total of RMB 16,486,978.81.
（2）As of December 31,2013，The fixed-term deposit balance of money fund is RMB 5,403,261.39, this part will
not be treated as closing cash or closing cash equivalent in preparing cash flow statement.
(3）As of December 31, Other monetary capitals as credit guarantee funds.
2. Bill receivable
（1）Classification Bill receivable
||
|-|
|Year-end balance|
|19,031,515.21|
|19,031,515.21|

（2）As of December 31,2013，The Company has no Bill receivable under pledgeBill receivable under pledge.（3）As of December 31,2013，The Company has no reason to iBill transferred to account receivable for the issuer is not able to execute the liability , and notes endorsed to other parties but are not mature yet at the end of periods of the top five is as follows:
||||
|-|-|-|
|Date of issue|Expired on|Amount|
|2013-11-13|2014-03-13|1,319,540.00|
|2013-10-31|2014-01-30|1,189,500.00|
|2013-10-9|2014-01-09|1,057,000.00|
|2013-09-24|2014-03-24|570,336.60|
|2013-10-21|2014-04-21|541,800.11|
|||4,678,176.71|

3. Interest receivable
||||
|-|-|-|
|Amount at yearbeginning|Increase at this period|Decrease at thisperiod|
||12,330,486.86|6,810,451.65|
||6,279,221.90|5,573,057.52|
||18,609,708.76|12,383,509.17|

 4. Account receivable
1.Classification accojunt receivables.
Amount in year-end
||||
|-|-|-|
|Book Balance|||
|Amount|Proportion(%)|Amount|

||||
|-|-|-|
|5,392,574.09|3.50|3,600,130.73|

 Receivables provided bad debt provision in groups
||||
|-|-|-|
|142,903,566.29|92.77|7,427,824.51|
|142,903,566.29|92.77|7,427,824.51|
|5,742,723.20|3.73|4,588,703.33|
|154,038,863.58|100.00|15,616,658.57|

Amount in year- begin
||||
|-|-|-|
|Book Balance|||
|Amount|Proportion(%)|Amount|
|1,807,687.37|1.61|1,807,687.37|

 Receivables provided bad debt provision in groups
||||
|-|-|-|
|106,479,274.60|94.83|5,537,931.64|
|106,479,274.60|94.83|5,537,931.64|
|4,003,127.89|3.56|4,003,127.89|
|112,290,089.86|100.00|11,348,746.90|

Account reveivable on which bad debt proisions are provided on age basis in the group
||||||
|-|-|-|-|-|
|Balance in year-end|||||
|Balance of book||Bad debtprovision|Balance of book||
|Amount|Propertion(%)||Amount|Propertion(%)|
|141,337,368.98|98.90|7,066,868.45|105,490,691.55|99.07|
|1,040,200.49|0.73|104,020.05|288,946.25|0.27|
|30,312.02|0.02|9,093.61|576,579.80|0.54|

||||||
|-|-|-|-|-|
|495,684.80|0.35|247,842.40|123,057.00|0.12|
|142,903,566.29|100.00|7,427,824.51|106,479,274.60|100.00|

 (2)In the end report peiod, separate amount is not large , the account receivable with big combination risk after combined via risk character
||||
|-|-|-|
|Book balance|Amount ofbad debt|Proportion（%）|
|5,392,574.09|3,600,130.73|66.76%|
|5,742,723.20|4,588,703.33|79.90%|
|11,135,297.29|8,188,834.06||

（3）In the report period, The company has reclaimed RMB0.00 of the receivable payment of provision for bad debts recognized by full payment in prior period.
（4）The front 5units’ information of account receivable
||||
|-|-|-|
|Relation withthe Company|Amount|Ages|
|Client, relatedparties|43,357,751.95|W i th i n 1year|
|Client|11,931,531.16|W i th i n 1year|
|Client|10,483,545.35|W i th i n 1year|
|Client|8,182,802.28|W i th i n 1year|
|Client|7,971,346.22|W i th i n 1year|
||81,926,976.96||

（5）As of December 31, 2013, there are no receivables from any shareholders held over5%(inclusive5%) voting shares of the Company.
（6）Account receivable from Related parties
|||
|-|-|
|Relation with thecompany|Amount|

|||
|-|-|
|Client, related parties|43,357,751.95|
|Client, related parties|887,896.60|
|--|44,245,648.55|

 5. Other receivable
1.Type analyses:
Amount in year-end
||||
|-|-|-|
|Book Balance|||
|Amount|Proportion(%)|Amount|
|11,981,464.60|7.43|11,981,464.60|

 Other receivables provided bad debt provision in groups
||||
|-|-|-|
|148,612,661.88|92.19|8,342,351.29|
|148,612,661.88|92.19|8,342,351.29|
|609,088.77|0.38|609,088.77|
|161,203,215.25|100.00|20,932,904.66|

Amount in year-begin
||||
|-|-|-|
|Book Balance|||
|Amount|Proportion(%)|Amount|
|12,075,436.43|17.93|12,075,436.43|

 Other receivables provided bad debt provision in groups
||||
|-|-|-|
|54,519,378.91|80.93|3,450,310.58|
|54,519,378.91|80.93|3,450,310.58|
|766,081.15|1.14|766,081.15|

Amount in year-begin
||||
|-|-|-|
|Book Balance|||
|Amount|Proportion(%)|Amount|
|67,360,896.49|100.00|16,291,828.16|

Other receivable accounts in Group on which bad debt provisions were provided on age analyzebasis：
||||||
|-|-|-|-|-|
|At end of term|||||
|Book balance||Bad debtprovision|Book balance||
|Amount|Proportion(%)||Amount|Proportion(%)|
|145,815,472.70|98.05|7,323,309.09|50,412,655.15|92.47|
|752,025.25|0.51|75,192.52|2,103,003.04|3.86|
|393,661.47|0.26|118,098.46|1,412,389.24|2.59|
|1,651,502.46|1.18|825,751.22|591,331.48|1.08|
|148,612,661.88|100.00|8,342,351.29|54,519,378.91|100.00|

（2）Separate amount is big at end of the period or not big but other account receivable and doubtful reserves shall be withdrawn
||||
|-|-|-|
|Book balance|Amount ofbad debts|Rate（%）|
|11,981,464.60|11,981,464.60|100.00%|
|609,088.77|609,088.77|100.00%|
|12,590,553.37|12,590,553.37||

（3）In the report period, The company has reclaimed RMB93,971.83 of the receivable payment of provision for
bad debts recognized by full payment in prior period.
（4）In the report period, The company has notOther receivable accounts actually written off in the report period
（5）As of December 31, 2013, there were no other receivables from any shaharholdersheldover5%(inclusive5%)
voting shares the Company
（6）The front 5units’ information of other account receivable
||||
|-|-|-|
|Relation with thecompany|Amount|Ages|
|Non-related parties|99,000,000.00|Within 1year|
|Non-related parties|39,060,047.40|Within 1year|
|Non-related parties|11,389,044.60|4-5 years|
|Sharing Company|1,800,000.00|Within 1year|
|Non-related parties|1,076,022.48|Within 1year|
||152,325,114.48||

（7）Account receivable from Related parties
|||
|-|-|
|Relation with thecompany|Amount|
|Sharing Company|1,800,000.00|
|Sharing Company|256,373.58|
||2,056,373.58|

（8）During the reporting period, the Company had no termination of other receivable accounts.
（9）During the reporting period, the Company had no other receivables underlying securities of other receivables. 6.Payment in advance
（1）Age analysis
||||
|-|-|-|
|Balance in year-end|||
|Amount|Proportion（%）|Amount|
|19,929,907.06|94.76%|12,711,147.09|
|1,101,870.10|5.24%||
|21,031,777.16|100.00%|12,711,147.09|

（2）The front 5units’ information of Payment in advance
||||
|-|-|-|
|Relation withthe company|Amount|Time|
|SupplierSupplier|7,783,630.90|Within 1year|
||1,000,000.00|1-2 years|

||||
|-|-|-|
|Supplier|3,415,414.48|Within 1year|
|Supplier|2,593,999.80|Within 1year|
|Supplier|2,266,272.00|Within 1year|
|Supplier|1,025,521.93|Within 1year|
||18,084,839.11||

(3)As of December 31, 2013, There was no Prepayment due from shareholders with nore than5% (including5%) of the voting shares of the company.
7．Inventory
（1）Inventory types
||||||
|-|-|-|-|-|
|Year-end balance|||||
|Book balance|Provision forbad debts|Book value|Book balance|Provision forbad debts|
|118,447,861.42|30,079,424.36|88,368,437.06|98,017,177.01|4,589,447.60|
|8,801,829.49||8,801,829.49|21,914,860.08|2,773,084.10|
|161,438,049.40|54,930,603.47|106,507,445.93|34,004,107.39|3,434,000.51|
||||1,598,561.17|1,598,561.17|
|133,102.72||133,102.72|118,539.22||
|288,820,843.03|85,010,027.83|203,810,815.20|155,653,244.87|12,395,093.38|

（2）Inventory Impairment provision
||||||
|-|-|-|-|-|
|Book balanceat yearbeginning|Amountaccounted incurrent period|Amount Decreased in current period|||
|||Transferred back|Reselling|Other outflow|
|4,589,447.60|25,898,081.30|||408,104.54|
|2,773,084.10|||2,773,084.10||
|3,434,000.51|51,942,593.30|||445,990.34|
|1,598,561.17||||1,598,561.17|
|12,395,093.38|77,840,674.60||2,773,084.10|2,452,656.05|

（3）Condition of inventory value decline
|||
|-|-|
|Base of stock value decline|Reason of issuing back tostock value decline plan ofthis period|

||
|-|
|Net realisable value is lower than thecorresponding cost|
|Net realisable value is lower than thecorresponding cost|
|Net realisable value is lower than thecorresponding cost|
|Net realisable value is lower than thecorresponding cost|

8.Other current assets
||
|-|
|End of term|
|100,000,000.00|
|100,000,000.00|

9.Disposable financial assets
（1）Sellable financial assets
||
|-|
|Fair value at end of term|
|41,829,021.22|
|41,829,021.22|

 This issue will be re-held-to-maturity investments classified as available for sale financial assets, the current re-classification of the amount of RMB 0.00 .
Explanation of financial assets available for sale:
The amount of available for sale assets are held by Shenzhen Victor Onward Textile Industrial Co., Ltd. shares,(1)*ST Shen Victor Onward A of the company holds a total of 3,744,594 shares of the outstanding shares of the highest A share price of 9.57 yuan in December 31, 2013, (2) ST Fawer of the company holds a total of985,733 shares of the outstanding shares of the highest A share price of 6.08 yuan in December 31, 2013 .
10.Investment to joint venture and affiliated Enterprises
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Related parties|Type|Legalrepresentative|Nature|Registratedcapital|Held Shareproportion(%)|Votingproportion(%)|End total assets|End totalliablilities|End total netassets|Total currentrevenues|
|LimitedCompany|Shenzhen|FengJunbin|Serivice|HKD10million|50.00%|50.00%|7,029,604.31|549,728.60|6,479,875.71|1,858,304.50|
|LimitedCompany|Shenzhen|YeYongling|Manufacturing|3.12 million|50.00%|50.00%|8,190,593.11|2,074,503.97|6,116,089.14|1,763,700.00|
|LimitedCompany|Shenzhen|ZhuMeizhu|Serivice|6.47million|40.25%|40.25%|5,494,090.12|1,125,266.91|4,368,823.21|353,000.00|
|LimitedCompany|Jordan|ChenWenxian|Manufacturing|USD1million|35.00%|35.00%|USD2,243,294.53|USD904,720.76|USD1,338,573.77|USD4,467,213.74|
|Limited Company|Saipan||Manufacturing|USD6.96million|35.00%|35.00%|||||

Notes 1: There is no significant difference among the significant accounting policy of joint venture and Affiliated enterprise , the accounting estimate and the company accounting policy, the accounting estimate.
11. Long term share equity investment.
(1) Long-term equity investments
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Accountingmethod|Initialinvestmentcost|Originalbalance|change|EndingBalance|Shareholdingproportion in the|Votingrightproportion in the|Explaination ofdiffirence betweenshareholdingproportion and|Devalue|Currentdevalue|
|Cost|14,831,681.50|14,831,681.50||14,831,681.50|investee3.68%|investee3.68%|voting rightproportion in|14,831,681.50||
|methodEquity|2,040,102.73|3,665,118.59|-2,835.77|3,662,282.82|50.00%|50.00%|investee|||
|methodEquity|1,529,483.67|2,976,192.28|348,507.29|3,324,699.57|50.00%|50.00%||266,654.99||

Co., Ltd. method
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Accountingmethod|Initialinvestmentcost|Originalbalance|change|EndingBalance|Shareholdingproportion in the|Votingrightproportion in the|Explaination ofdiffirence betweenshareholdingproportion and|Devalue|Currentdevalue|
|Equity|2,524,500.00|1,752,210.56|6,240.78|1,758,451.34|investee40.25%|investee40.25%|voting rightproportion in|||
|methodEquity|7,240,625.00|2,587,660.99|268,741.66|2,856,402.65|35.00%|35.00%|investee|||
|methodEquity|8,228,350.00|||0.00|35.00%|35.00%||||
|methodCost|16,800,000.00|16,800,000.00||16,800,000.00|10.80%|10.80%||16,800,000.00||
|methodCost|5,491,288.71|5,491,288.71||5,491,288.71|45.00%|45.00%||5,058,307.01||
|methodCost|2,600,000.00|2,600,000.00||2,600,000.00|2.87%|2.87%||||
|methodCost|160,000.00|160,000.00||160,000.00|20.00%|20.00%||||
|methodCost|524,000.00|524,000.00||524,000.00|20.00%|20.00%||||
|methodCost|2,392,914.37|2,392,914.37||2,392,914.37|17.85%|17.85%||||
|methodCostmethod|532,062.50|2,559,856.26||2,559,856.26|30.00%||Externalcontractmanagement|||
|Cost|25,000,000.00|25,410,209.50||25,410,209.50|50.00%||External contractmanagement|||
|methodCost|1,500,000.00|1,500,000.00||1,500,000.00|9.84%|9.84%||||
|methodCost|1,800,000.00|1,800,000.00||1,800,000.00|18.00%|18.00%||||
|methodCost|1,460,000.00|1,460,000.00|-1,460,000.00|||||||
|method--|94,655,008.48|86,511,132.76|-839,346.04|85,671,786.72||||36,956,643.50||

(2)During the reporting period, the company is not limited to transfer funds to the Investment Company limited circumstances.
（3）The company has no long-term equity investment of limited sales condition in the end.
12.Investment real estate
（1）Measured by the cost of investment in real estate
||||
|-|-|-|
|Book amount atyear beginning|Increase at thisperiod|Decrease at thisperiod|
|258,462,134.46|884,537.00|5,303,740.00|
|258,462,134.46|884,537.00|5,303,740.00|
|103,700,238.75|6,755,582.89|3,893,478.03|
|103,700,238.75|6,755,582.89|3,893,478.03|
|154,761,895.71|||
|154,761,895.71|||
|154,761,895.71|||
|154,761,895.71|||

(2)
|||
|-|-|
||This period|
|Current amount of depreciation and amortization|6,755,582.89|
|Accrual amount of impairment provision for investment||
||0.00|
|properties of thecurrent period||

（3）As of December 31, 2013,The company has no fair value measurement of investment real estate.
13. Fixed assets
（1）Fixed assets
|||||
|-|-|-|-|
|Book amount atyear beginning|Increase at this period||Decrease at thisperiod|
|1,118,064,106.42|1,969,494.70||4,464,386.83|
|461,341,626.31|||1,129,601.97|
|636,247,943.27|185,442.73||2,200,564.39|
|3,788,554.03|5,880.00||224,933.00|
|16,685,982.81|1,778,171.97||909,287.47|
||Currentterm newextra|Current termprovision||
|168,664,195.59||72,091,122.55|3,667,435.48|
|50,729,300.80||13,083,318.33|567,157.93|
|107,161,319.14||56,932,667.20|2,094,556.17|
|1,689,900.95||443,820.73|151,455.78|
|9,083,674.70||1,631,316.29|854,265.60|
|949,399,910.83||||
|410,612,325.51||||
|529,086,624.13||||
|2,098,653.08||||
|7,602,308.11||||
|235,233.62||||
|235,233.62||||
|949,164,677.21||||
|410,612,325.51||||
|529,086,624.13||||
|1,863,419.46||||
|7,602,308.11||||

(2) Current depreciation is RMB 72,091,122.55， The issue of fixed assets transferred from construction in progress original price is
RMB 446,649,324.34.
There is no fixed assets transferred from construction in progress at current period.
（3）As of December 31,2013，The company has no temporary situation of idle fixed assets.
（4）As of December 31,2013，The company has no lease by financing the fixed assets of the situation.（5）As of December 31,2015，The fixed assets leased through operating leases.
（6）The TFT-LCD polarizing film project the carry-over of buildings and structures in fixed assets，the company has not yet completed the property certificate,In 2014 is expected to go through.
14. Project under construction
（1）Project under construction
||||||
|-|-|-|-|-|
|Year-end balance|||||
|Book balance|Provisionfordevaluation|Book Net value|Book balance|Provisionfordevaluation|
|27,620,841.73||27,620,841.73|2,160,204.20||
|22,003,109.19||22,003,109.19|9,416,319.19||
|10,077,241.80||10,077,241.80|||
|3,216,023.27||3,216,023.27|||
|62,917,215.99||62,917,215.99|11,576,523.39||

2. The variation in constructing the engineering project
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Budget|Amount atyearbeginning|Increase atthis period|Transferredto fixedassets|Otherdecrease|Proportion(%)|Progressof work|Capitalisation ofinterestaccumulated balance|Including：Currentamount ofcapitalization of interest|Capitalisation ofinterestratio（%)|Source offunds|
|1470.93million|2,160,204.20|25,460,637.53|||2%|2%||||C ollect andSelf-|
||2 ,160,204.20|25,460,637.53|||||||||

（3）Impairment Provisions of Construction in progress
|||||
|-|-|-|-|
|Balance in year-begin|Increase at this period|Decreae at this period|Balance in year-end|

（4）Major projects under construction
||
|-|
|Progress work|
|2%|

15. Intangible assets
Intangible assets
||||
|-|-|-|
|Book Balance inyear-begin|Increase at thisperiod|Decrease at thisperiod|
|62,275,410.50|||
|48,765,130.50|||
|11,825,200.00|||
|1,685,080.00|||
|16,112,948.81|2,284,390.32||
|5,846,995.89|1,285,355.28||
|10,248,400.00|788,400.00||
|17,552.92|210,635.04||
|46,162,461.69|||
|42,918,134.61|||
|1,576,800.00|||
|1,667,527.08|||
|46,162,461.69|||
|42,918,134.61|||
|1,576,800.00|||
|1,667,527.08|||

（2）The amortization amount is RMB 2,284,390.32.
（3）No any development project expenditure.
16. Goodwill
|||||
|-|-|-|-|
|Balance inyear-begin|Increase atthis period|Decreaseat thisperiod|Book Balancein year-end|
|2,167,431.21|||2,167,431.21|
|82,156.61|||82,156.61|
|9,614,758.55|||9,614,758.55|
|11,864,346.37|||11,864,346.37|

 Description of the impairment of business reputation impairment testing methods and provisioning methods: goodwill related to the asset group or a combination of asset group signs of impairment exists, according to the following steps to deal with: first, do not include business reputation asset group or a Group portfolio of assets impairment testing, calculate recoverable amount, and with the relevant book value compared to the corresponding recognized devalue losses; and then again with the goodwill asset group or a group of portfolio asset impairment testing, compare the related assets group or groups of assets portfolio book value (including the share of the book value of business reputation in part) to its recoverable amount.
17. Long-term amortization expenses
||||||
|-|-|-|-|-|
|Balance inyear-begin|Increase atthis period|Amount ofamortizationat currentperiod|OtherDecrease|Balance inyear end|
|793,628.08|352,312.00|556,701.94||589,238.14|
|211,960.00|64,361.00|30,279.96||246,041.04|
|1,005,588.08|416,673.00|586,981.90||835,279.18|

18. Deferred income tax assets/Deferred income tax liabilities
(1）Recognized deferred income tax assets and deferred income tax liabilities
||
|-|
|Year-end balance|
|19,534,074.48|
|455,566.34|
|20,143,883.87|
|40,133,524.69|
|7,844,924.43|
|52,384,071.50|
|60,228,995.93|

 (2)Details of the un-recognized deferred income tax assets
||
|-|
|At end of term|
|19,384,041.65|
|19,384,041.65|

Due to the uncertainty of acquirement of enough taxable income for the company in the future, the 2013 new annual deductible losses of RMB 129,226,944.33haven’t been recognized as the deferred tax assets and shall expire in 2018.
(3)Details of taxable differences and deductible differences
Items Amount of temporary differences
Deductible difference items
Provision for bad debts 25,160,518.63 Provision for falling price of inventory
85,010,027.83 Impairment of long-term equity investments
5,227,896.65
Unattained internal sales profits
3,037,108.90
Deductible loss
134,292,559.16
Loss of available-for-sale financial assets 2,947,341.67
Subtotal 255,675,452.84 Differences in taxable items
Increase and decrease of fair value of available-for-sale
financial assets 31,379,697.72
||
|-|
|Stock equity disposition of the temporary taxable|
|difference and the taxable income|

 Subtotal 240,915,983.72
19. Provision for depreciation of assets
||||||
|-|-|-|-|-|
|Book balance at thebeginning of term|Increase inthis period|Decreased in this period|||
|||Switchback|Switchcancellation|Other outflow|
|27,640,575.06|10,192,159.03|93,971.83||1,189,199.03|
|12,395,093.38|77,840,674.60||2,773,084.10|2,452,656.05|
|235,233.62|||||
|38,416,643.50|||1,460,000.00||
|2,249,587.82|||||
|80,937,133.38|88,032,833.63|93,971.83|4,233,084.10|3,641,855.08|

Notes：The reduction in this period is the provision of the recognized bad debts and the inventory shrinkage caused by transferring100% equity of Shenzhen Jinlan Decorative Articles Industrial Co.,Ltd
20. Short-term loan
（1）Categories of short-term loans
|||||
|-|-|-|-|
|Currency|Balance in year-end|||
||Former currency|RMB|Former currency|
|RMB||||
|Jpy|||440,162,555.00|

 Description of short-term loans classifications: The short-term loans are classified by loans.
（2）There are no expired outstanding short-term borrowings at the end of the reporting period.
21. Account payable
（1）Account payable
||
|-|
|Balance in year-end|
|102,192,867.77|
|718,719.91|
|185,976.28|
|34,702.31|
|4,750,532.17|
|415,057.41|
|108,297,855.85|

 (1) There was no closing accounts payable, payable to holders of no more than5% (including5%) of the voting shares or other related parties.
22. Advance account
(1).Advance account
||
|-|
|Balance in year-end|
|31,021,762.38|
|968.90|
|9,072.57|
|50.76|
|1,516.80|

||
|-|
|639,024.58|
|31,672,395.99|

 (2)As of December 31,2013, There is no advance payment from any shareholder with5%(inclusive5%) of voting shares of the Company.
（3）The description of large-sum accounts payable with the age over 1 year:
The receipts in advance with the age more than 1 year in thecompany’s advance.
23. Payable Employee wage
||||
|-|-|-|
|Balance inyear-begin|Increase in thisperiod|Decrease in thisperiod|
|24,690,993.56|106,616,219.12|97,370,574.04|
||6,093,155.26|6,093,155.26|
||10,643,223.27|10,643,223.27|
||1,675,942.44|1,675,942.44|
||6,180,378.43|6,180,378.43|
||1,853,271.19|1,853,271.19|
||523,756.93|523,756.93|
||177,830.08|177,830.08|
||232,044.20|232,044.20|
|26,376.00|4,079,492.39|4,105,868.39|
|1,041,508.99|2,167,529.65|2,063,243.90|
|155,842.30|633,275.00|598,275.00|
|25,914,720.85|130,232,894.69|120,874,339.86|

 The expected release time and amount of staff salary and welfare payable are arranged in the beginning of next year.
24. Tax Payable
||
|-|
|At end of term|
|-83,251,855.37|

||
|-|
|545,872.17|
|51,408.95|
|4,631,220.77|
|248,980.27|
|178,701.74|
|80,428.96|
|302,006.12|
|-77,213,236.39|

 25. Interest Payable
||
|-|
|Year-end balance|
|23,970,903.52|
|23,970,903.52|

 26. Other payable
(1)Other payable
||
|-|
|Balance in year-end|
|15,774,911.68|
|33,392,315.67|
|39,861,731.13|
|3,232,041.30|
|1,379,841.65|
|26,448,984.85|
|120,089,826.28|

（2） As of December 31, 2013, there is no other payable to any shareholder with5%(inclusive5%) of total voting shares of the Company.See Notes VII.6.
（3）For the other payables at the end of period, the large amount mainly is the payment of equipment for Project I of the polaroid with TFT-LCD.
27. Long-term loan
（1）Long-term loans classifications
|||||
|-|-|-|-|
|Currency|Year-end balance|||
||Foreign Currency|RMB|Foreign Currency|

|||
|-|-|
|RMB|200,000,000.00|
||200,000,000.00|

 As regards long-term loans classifications:
Long-term loans are classified byloans.。The long-term loans at the end of period are the loans enxtended to the Company by Pingan Bank. Shenzhen Jiangsu Building Branch. entrusted by Shenzhen Shenchao Technology Investment Co., Ltd.. No long-term loans were formed due to the extension of overdue loans.
（2）The top five of long-term loans
||||||||
|-|-|-|-|-|-|-|
|Loansstartingdate|Loansending date|Currency|Interestrate (%)|Year-end balance|||
|||||Amount ofForeigncurrency|Amount ofRMB|AmountofForeigncurrency|
|2011-11-3|2018-1-24|RMB|4.40%||40,000,000.00||
|2011-11-3|2018-1-24|RMB|4.40%||40,000,000.00||
|2011-11-3|2018-1-24|RMB|4.40%||23,280,991.70||
|2010-11-25|2015-6-24|RMB|4.40%||21,225,294.00||
|2010-7-14|2015-6-24|RMB|4.40%||21,047,897.96||
||||||145,554,183.66||

 28.Other Non-current liabilities
||
|-|
|Year-end Book balance|
|51,593,141.94|
|51,593,141.94|

Deferred incomerelated：
||||||
|-|-|-|-|-|
|December 31,2012|Additions|Amount ofnon-operatingincome|Otherchanges|December 31,2013|
|1,428,571.44||142,857.14||1,285,714.30|
|1,400,000.00||200,000.00||1,200,000.00|
|7,000,000.00||1,000,000.00||6,000,000.00|
|1,355,511.01|483,000.00|386,844.49||1,451,666.52|
|23,729,940.00||7,909,980.00||15,819,960.00|
|11,200,000.00|1,000,000.00|1,366,666.66||10,833,333.34|
|5,000,000.00||500,000.00||4,500,000.00|
||1,750,902.00|198,434.22||1,552,467.78|
||500,000.00|50,000.00||450,000.00|
||500,000.00|||500,000.00|
|5,000,000.00||||5,000,000.00|
||3,000,000.00|||3,000,000.00|
|600,000.00||600,000.00|||
|56,714,022.45|7,233,902.00|12,354,782.51||51,593,141.94|

Statement on Deferred income：
（1）According to the "Notice on National Development and Reform Commission to the General Office of the textile project management of the special funds" (Faigaiban[2006]2841), on December 2006, the Company received "Textile special" funds RMB 2,000,000.00 from Shenzhen Finance Bureau. The company will use 14 years as asset depreciation period for amortization with the corresponding equipment in current period.The 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 1,285,714.30 ;
(2) According to the document of Shenzhen Municipal Development and Reform Commission【2009】 No. 416 that "The Notice On issued the Governmental Investment Plan in 2009 on Zhong Ke New Industrial Internet Security Audit System and Other High-tech Industrialization Demonstration Project and the Public Testing and Consultation Service of Information Security Industry and other National High-tech Industrial Base Platform Projects”, on May 2009, the company received the Shenzhen Municipal Development and Reform Commission high-tech industrialization demonstration project supporting Capital RMB 2 million allocated by Shenzhen City Bureau of Finance for the construction of “The Project of the Construction Line of Polaripiece for TFT-LCD”.Our company will use 10 years as asset depreciation period for amortization in current period. The non-operating
income in current period is RMB 200,000.00 and the balance amount of unfinished final amortization is RMB
1,200,000.00;
(3) According to the document of the Office of the State Development and Reform Commission on "The Office of
the State Development and Reform Commission on the Reply of New Flat-Panel Display Industrialization Special
Project” (Development and Reform OfficeHigh-Tech【2008】No. 2104), the company obtained the state subsidies RMB 10,000,000.00 from the State Development and Reform Commission New Flat-Panel Display Industrialization Special Project for the construction of “The Project of Polaripiece Industrialization for TFT-LCD”. On June 2009, December 2009 and April 2010, the company received the special subsidies of State Development and Reform Commission RMB 1,000,000.00. Our company will use 10 years as asset depreciation period for amortization. The non-operating income in current period is RMB 1 million, the balance amount of unfinished final amortization is RMB 6,000,000.00.
（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 386,844.49 and the balance amount of unfinished final amortization is RMB 1,451,666.52.
（5）The Company receivedR&D subsidy of RMB 39.5499 million 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 and the balance amount of unfinished final amortization is RMB 15,819,960.00;
（6）In accordance with the Notice of Forwarding the Reply of General Office of State Development and Reform Commission Regarding Special Plan for Strategic Transformation and Industrialization of Color TV Industry issued by Shenzhen Development and Reform Commission (Shen Fa Gai (2011) No. 823), State Development and Reform Commission approved including the project of industrialization of polarizer sheet for TFT-LCD of Shengbo Optoelectronic Company into the special plan for strategic transformation and industrialization of color TV industry in 2010 and appropriated national aid of RMB 10,000,000.00 to Shengbo Optoelectronic Company for the research and development in the process of the project of industrialization and the purchase of required software and hardware equipment. As of December 31, 2012, RMB 9,000,000.00 was actually received. 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. Our company will use 10 years as asset depreciation period for amortization in current period.The non-operating income in current period is RMB1,366,666.66 and the balance amount of unfinished final amortization is RMB10,833,333.34;
（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 RMB500,000.00 and the balance amount of unfinished final amortization is RMB4,500,000.00;
（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 RMB198,434.22 and the balance amount of unfinished final amortization is RMB1,552,467.78;
（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 RMB450,000.00;
（10）In December 2013,The company has received the innovation funds of RMB500,000.00 (the supporting and funding category) from Shenzhen Polaroid Material and Technical Engineering Laboratory of Shenzhen Pingshan
New District Development and Finance Bureau. Also, the company shall allocate and transfer the deferred income
into the profit or loss in the current period based on the depreciation limit from the date of the expected usable status achieved for the relevant assets.
（11）According to the Approval of Application of Shenzhen Shengbo Optoelectronic Technology Co., Ltd. for Project Funds for Shenzhen Polarization Material and Technology Engineering Laboratory (Shen Fa Gai (2012) No. 1385), Shenzhen Polarization Material and Technology Engineering Laboratory was approved to be established on the strength of Shengbo Optoelectronic with total project investment of RMB 24,390,000.00. As approved by Shenzhen Municipal People's Government, this project was included in the plan for supporting the fourth group of enterprises with special fund for the development of strategic new industries in Shenzhen in 2012 (new material industry). According to the Notice of Issuing the Plan for Supporting the Fourth Group of Enterprises with Special Fund for Development of Strategic New Industries in Shenzhen in 2012 (Shen Fa Gai (2012) No. 1241), the Company received subsidy of RMB 5,000,000.00 on December 2012 for purchasing instruments and equipment and improving existing technological equipment and test conditions. The fund gap will be filled by the Company through raising funds by itself. The subsidy will be amortized over the depreciation period from the day when relevant assets get ready for intended use;
（12）According to the “Announcement on the Identification of Technology Centers of 24 Enterprises including Shenzhen Yuanwanggu Information Technology Joint Stock Company Limited as the Municipal Research and Development Centers (Technical Center)” (SJMXXJS[2013] No.137), the research and development center of Shenzhen SAPO Photoelectric Co., Ltd. has been regarded as 2012 annual municipalR&D center. In December 2013, the company has received the funding subsidy of RMB3 million for the construction of the technical center. Also, the company shall allocate and transfer the deferred income into the profit or loss in the current period based on the depreciation limit from the date of the expected usable status achieved for the relevant assets.
29. Stocks capital
|||||||
|-|-|-|-|-|-|
|Balance inyear-begin|Changed（+，-）|||||
||Issuance ofnew share|Bonusshares|Capitalizationof publicreserve|Other|Subtotal|
|336,521,849.00|170,000,000.00||||170,000,000.00|

Notes：
As approved by the Approval of Private Issue of Shares by Shenzhen Textile (Holding) Co., Ltd. (Zhen Jian Permit (2013) No. 2 Document) issued by China Securities Regulatory Commission, the Company privately issued RMB170,000,000.00 ordinary shares (par value per share: RMB 1.00). After change, The company has increased the registered capital (equity) of RMB170,000,000.00 and the capital surplus of RMB791.75100085
million. Also, the capital increase has been reviewed by Peking Certified Public Accountants Co., Ltd., who has
issued the capital verification report of “Peking YZ[2013] No.6”.
30. Capital reserves
||||
|-|-|-|
|Year-beginningbalance|Increase in thecurrent period|Decrease in thecurrent period|
|782,656,413.49|791,751,000.85||
|46,256,724.18|8,502,330.90|22,641,300.00|
|828,913,137.67|800,253,331.75|22,641,300.00|

 Statement on capitalreserves：
(1) According to the Approval of Private Issue of Shares by Shenzhen Textile (Holding) Co., Ltd. (Zhen Jian Permit (2013) No. 2 Document) issued by China Securities Regulatory Commission, registered capital (share capital) was increased by RMB 170,000,000.00 RMB and capital surplus was increased by RMB 791,751,000.85. (2) The increase of other capital surplus is the net amount of change of fair value of financial assets available for sale held by the Company in the report year after deduction of recognized deferred income tax liabilities. The decrease of other capital surplus is due to the outward transfer of the change of fair value originally accounted for as capital surplus after sales of financial assets available for sale.
31. Surplus reserve
||||
|-|-|-|
|Year-beginningbalance|Increase in the currentperiod|Decrease in thecurrent period|
|36,607,659.49|23,194,075.61||
|36,607,659.49|23,194,075.61||

 Statement on surplus reserves.
The increase amount of surplus is the statutory surplus withdrawn by10% of the net profit of the parent company in this period.
32. Retained profits
||
|-|
|Amount|
|100,969,308.23|
|100,969,308.23|

||
|-|
|47,222,590.97|
|23,194,075.61|
|124,997,823.59|

33. Business income, Business cost
（1）Business income
||
|-|
|Amount of current period|
|1,126,484,708.06|
|4,613,872.31|
|1,131,098,580.37|
|1,083,324,129.70|
|4,613,872.28|
|1,087,938,001.98|

（2）Mainbusiness（Industry）
||||
|-|-|-|
|Amount of current period|||
|Business income|Business cost|Business income|
|570,338,653.90|565,812,030.98|451,634,641.37|
|469,835,596.37|494,063,237.14|306,679,542.93|
|86,310,457.79|23,448,861.58|81,850,802.05|
|1,126,484,708.06|1,083,324,129.70|840,164,986.35|

（3）Mainbusiness（Production）
Name Amount of current period Amount of previous period
||||
|-|-|-|
|Business income|Business cost|Business income|
|86,310,457.79|23,448,861.58|81,850,802.05|
|33,825,534.08|26,674,471.14|43,865,136.66|
|595,898,549.98|625,366,491.80|262,814,406.27|
|410,450,166.21|407,834,305.18|451,634,641.37|
|1,126,484,708.06|1,083,324,129.70|840,164,986.35|

（4）MainBusiness（Area）
||||
|-|-|-|
|Amount of current period|||
|Business income|Business cost|Business income|
|350,662,919.71|278,950,805.70|270,948,389.89|
|775,821,788.35|804,373,324.00|569,216,596.46|
|1,126,484,708.06|1,083,324,129.70|840,164,986.35|

（5）Operating income from top five clients
||
|-|
|Business Income|
|408,378,030.99|
|224,447,786.39|
|37,403,805.21|
|34,485,118.15|
|27,846,885.70|
|732,561,626.44|

 34. Business tax and subjoin
|||
|-|-|
|Report period|Same period of theprevious year|
|4,480,126.76|4,251,192.72|
|556,221.55|755,906.02|
|397,301.17|538,503.17|
|2,511,369.32|1,873,690.66|

|||
|-|-|
|Report period|Same period of theprevious year|
|323,503.62|326,020.32|
|8,268,522.42|7,745,312.89|

35. Sales expenses
||
|-|
|Amount of current period|
|3,343,253.00|
|164,933.00|
|83,199.17|
|465,224.53|
|674,633.29|
|161,642.80|
|3,674,907.43|
|2,634,049.45|
|11,201,842.67|

 36. Administrative expenses
||
|-|
|Amount of current period|
|31,104,670.09|
|3,181,821.01|
|629,459.71|
|378,804.93|
|1,758,317.66|
|4,818,598.65|
|332,390.70|
|1,512,854.86|
|824,161.90|
|5,032,390.58|
|2,284,390.32|

||
|-|
|Amount of current period|
|68,981.64|
|612,026.20|
|2,893,527.67|
|945,894.76|
|72,805,742.12|
|595,498.28|
|195,041.10|
|805,300.83|
|2,100,142.33|
|3,716,290.15|
|1,876,923.17|
|386,141.99|
|1,119,607.65|
|3,119,070.72|
|143,098,049.02|

 37. Financial Expenses
||
|-|
|Amount of current period|
|9,927,522.89|
|-21,239,272.53|
|-16,843,326.71|
|811,559.15|
|-27,343,517.20|

 38. Loss of assets impairment
||
|-|
|Amount of current period|
|10,098,187.20|
|75,067,590.50|
|2,947,341.67|

Total 88,113,119.37 8,942,501.92 39. Investment income
（1）Details of investment income
||
|-|
|Amount of currentperiod|
|4,858,513.12|
|1,145,653.96|
|206,908,753.38|
|45,135,723.11|
|258,048,643.57|

（2）Long term equity investment calculated via equitymethod：
|||
|-|-|
|Amount of currentperiod|Amount of previousperiod|
|522,164.23|528,048.22|
|348,507.29|284,675.66|
|6,240.78|-544.71|
|268,741.66|365,676.52|
|1,145,653.96|1,177,855.69|

（3）Long-term equity investment income bycosting：
|||
|-|-|
|Amount of currentperiod|Amount of previousperiod|
|80,000.00||
|786,200.00|810,000.00|
|1,800,000.00|1,800,000.00|
|843,305.40||

|||
|-|-|
|156,000.00|130,000.00|
|555,176.87|530,706.73|
|637,830.85|542,932.57|
|4,858,513.12|3,813,639.30|

（4）The disposal income of equity in this period is the profit caused by transferring100% equity of Shenzhen Jinlan Decoration Industrial Co., Ltd.
（5）In the report period, the company has no big restriction on the investment earning repatriation.
40. Non-operating income
（1）Non-operating income
|||
|-|-|
|Amount of currentperiod|Amount of previousperiod|
|4,815,825.02|50,519.43|
|4,815,825.02|50,519.43|
|15,060,086.51|11,526,881.62|
|4,342,141.40|241,052.81|
|24,218,052.93|11,818,453.86|

（2）Governmental subsidy details
|||
|-|-|
|Amount of currentperiod|Amount ofprevious period|
|500,000.00||
|198,434.22||
|142,857.14|142,857.14|
|7,909,980.00|7,909,980.00|
|200,000.00|200,000.00|
|1,000,000.00|1,000,000.00|
|386,844.49|193,644.48|
|1,366,666.66|800,000.00|
||44,000.00|
|50,000.00||

|||
|-|-|
|Amount of currentperiod|Amount ofprevious period|
|240,000.00||
|8,000.00||
|500,000.00||
|100,000.00||
|3,000.00||
|300,000.00||
||41,400.00|
||800,000.00|
|1,022,400.00|200,000.00|
|240,000.00|195,000.00|
|150,410.00||
|20,740.00||
|40,754.00||
|600,000.00||
|80,000.00||
|15,060,086.51|11,526,881.62|

41. Non-Operation expense
|||
|-|-|
|Amount of currentperiod|Amount of previousperiod|
|55,689.54|20,497.40|
|55,689.54|20,497.40|
|15,106.24|3,313,436.57|
|70,795.78|3 ,3 3 3 , 9 3 3 .9 7|

42. Income tax expenses
Items Amount of current period Amount of previous period
||
|-|
|13,872,289.15|
|40,923,582.71|
|54,795,871.86|

 43. Calculation of Basic earnings per share and Diluted earnings per share
（1）Calculating formula of income per share:
Basic earnings pershare=P/（S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0-Sk）
Dilute earning pershare=P1/(S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ common stock weighted average of subscription warrant, stock option, transferable bond)
（2）Calculating process of income per share
Basic earnings per share belonging to common stock shareholder in 2013
=47,222,590.97/(336,521,849+170,000,000×9÷12)
=0.10RMB/share
Basic earnings per share belonging to common stock shareholder deducted non-recurring gains and losses in2013=-161,473,020.61/(336,521,849+170,000,000×9÷12)
= -0.35RMB/share
Dilute earning per share belonging to common stock shareholder in 2013
=47,222,590.97/(336,521,849+170,000,000×9÷12)
=0.10RMB/share
Dilute earning per share belonging to common stock shareholder deducted non-recurring gains and losses in2013=-161,473,020.61/(336,521,849+170,000,000×9÷12)
= -0.35RMB/share
44. Other comprehensive income
||
|-|
|Amount of currentperiod|
|10,784,430.72|
|2,696,107.68|
|22,227,292.14|

||
|-|
|Amount of currentperiod|
|-14,138,969.10|

||
|-|
|Amount of currentperiod|
|-14,138,969.10|

 45. Notes Cash flow statement
1. Other cash received from business operation
||
|-|
|Amount of current period|
|9,939,206.00|
|28,728,086.41|
|38,667,292.41|

 2.Other cash paid for business activities
||
|-|
|Amount of current period|
|6,907,704.11|
|2,976,726.84|
|2,551,556.46|
|1,578,969.83|
|2,565,366.86|
|4,794,515.08|
|3,716,290.15|
|945,894.76|
|824,161.90|
|195,041.10|
|595,498.28|
|164,933.00|
|14,635,527.58|
|42,452,185.95|

 3. Cash received related to other investment activities
||
|-|
|Amount of current period|
|355,573,057.52|

Total 355,573,057.52 1,583,190.00 4.Cash paid related to other investment activities
||
|-|
|Amount of current period|
|450,000,000.00|
|450,000,000.00|

5. Cash received related to financing activities
||
|-|
|Amount of current period|
|1,255,875.50|
|1,255,875.50|

 46. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
||
|-|
|Amount ofcurrent period|
|47,222,590.97|
|88,113,119.37|
|78,846,705.44|
|2,284,390.32|
|586,981.90|
|-4,813,964.80|
|53,829.32|
|-2,807,566.07|
|-258,048,643.57|
|-10,538,958.52|
|52,345,152.50|
|-135,620,254.21|
|-45,284,528.05|
|934,939.32|
|-186,726,206.07|

||
|-|
|Amount ofcurrent period|
|943,913,951.68|
|227,189,754.43|
|716,724,197.25|

（2）There is no information on acquiring or disposing subsidiary company and other business unit at this period.（3）Composition of cash and cash equivalents
||
|-|
|Year-end balance|
|943,913,951.68|
|85,537.12|
|941,362,518.21|
|2,465,896.35|
|943,913,951.68|

Notes：Cash and cash equivalents excluding the parent Company or Subsidiary of the group using restricted cash and cash equivalents
VI. Accounting treatment of asset securitization
In the reporting period, the company has no asset securitization service.
VII.Related parties and related-party transactions
Parent company information of the enterprise
||||||||||
|-|-|-|-|-|-|-|-|-|
|Relatedparties|Type|Registeredaddress|Legalrepresentative|Nature|Registratedcapital|The parentcompany oftheCompany'sshareholdingratio|The parentcompany oftheCompany’svote ratio|The ultimatecontrolling partyof the Company|
|ParentCompany|State-ownedenterprise|Shenzhen|FanMingchun|Investment|RMB 10925.99.0674|46.21|49.39|State-ownedAssetsSupervision andAdministrationCommission ofShenzhen|

Parent company information of the company
The company is authorized and approved to be state-owned independent company by Shenzhen Government, and it Executes financial contributor function on state-owned enterprise within authorization scope.
2.Particulars of the subsidiaries
|||||||||
|-|-|-|-|-|-|-|-|
|Related parties|Type|Registeredaddress|Legalrepresentative|Nature|Registrated capital|Thesubsidiaries ofthe Company'sshareholdingratio|Thesubsidiariesof theCompany’svote ratio|
|wholly ownedsubsidiary|LimitedLiabilityCompany|Shenzhen|Zhu Meizhu|Domesticcommerce,materials supplyand sales|2,360,000.00|100.00|100.00|
|wholly ownedsubsidiary|LimitedLiabilityCompany|Shenzhen|Zhu Jun|Accommodation,restaurants,business center;|10,005,300.00|100.00|100.00|

|||||||||
|-|-|-|-|-|-|-|-|
|wholly ownedsubsidiary|LimitedLiabilityCompany|Shenzhen|Zhang Hong|PropertyManagement|1,600,000.00|100.00|100.00|
|wholly ownedsubsidiary|LimitedLiabilityCompany|Shenzhen|Zhang Hong|Production offully electronicjacquard knittingwhole shape|25,000,000.00|100.00|100.00|
|wholly ownedsubsidiary|LimitedLiabilityCompany|Shenzhen|Zhang Hong|Operating importand exportbusiness|5,000,000.00|100.00|100.00|
|wholly ownedsubsidiary|LimitedLiabilityCompany|Shenzhen|Zhu Jun|Operating importand exportbusiness|300,000,000.00|100.00|100.00|
|Wholly ownedGrandsonCompany||Hongkong|Zhumeizhu,LiuHonglei|Production andsales of polarizer|HKD10,000.00|100.00|100.00|

3. Joint-venture and affiliated enterprises information of the company
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Enterprise type|Registration Place|Legalrepresentative|Businesscharacter|Registeredcapital|Shareholdingratio(%)|vote rightratio(%)|Assets amount atend of period|Liabilityamount at endof period|Net assetsamount at end ofperiod|Business totalincome at thisperiod|Net benefit atthis period|Affiliationrelation|
|LimitedCompany|Shenzhen|FengJunbin|Serivice|HKD10million|50.00%|50.00%|7,029,604.31|549,728.60|6,479,875.71|1,858,304.50|1,044,328.45|Joint-venture|
|LimitedCompany|Shenzhen|YeYongling|Manufacturing|3.12million|50.00%|50.00%|8,190,593.11|2,074,503.97|6,116,089.14|1,763,700.00|697,014.59|Joint-venture|
|LimitedCompany|Shenzhen|ZhuMeizhu|Serivice|6.47million|40.25%|40.25%|5,494,090.12|1,125,266.91|4,368,823.21|353,000.00|15,505.04|Affiliatedenterprises|
|LimitedCompany|Jordan|ChenWenxian|Manufacturing|USD1milolion|35.00%|35.00%|USD2,243,294.53|USD904,720.76|USD1,338,573.77|USD4,467,213.74|USD125,938.32|Affiliatedenterprises|
|LimitedCompany|Saipan||Manufacturing|USD6.96million|35.00%|35.00%||||||Affiliatedenterprises|

4.Other Related parties information of the enterprise
||
|-|
|Relation of other Related parties with the company|
|Subject to the same party controls|
|Chairman of the parent company for the period from January toSeptember is this company's Vice Chairman|
|The Company director and general manager is the company director|
|Stock company|
|Stock company|
|Stock company|
|Stock company|

5. Related transactions.
（1）Related transactions on sale goods and receiving services
||||||
|-|-|-|-|-|
|Content ofrelatedtransaction|Pricingprinciple ofrelatedtransactions|Amount in current period|||
|||Amount|Proportion（%）|Amount|
|Salestextiles|Agreementprice|||41,025.64|
|Salespolarizersheet|Agreementprice|224,447,786.39|37.67|47,363,077.68|
|Salespolarizersheet|Agreementprice|3,872,065.26|0.65|4,479,658.44|

（2）In the reportperiod，The company has no associated trusteeship.
（3）In the reportperiod，The company has no associated contracting.
（4）In the reportperiod，The company has no associated lease.
（6）Related guarantee
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, 2013, The Company actually received a loan of RMB 200 million.（7）In the report period, there is no related transference and liabilities recombination of related parties . 6. Payables and receivables of the related party
|||
|-|-|
|Related party|Amount at year end|
|Shenzhen CSOT|43,357,751.95|
|Shenzhen Tianma MicroelectronicsCo., Ltd.|887,896.60|
|Shenzhen Dailishi Underwear Co.,Ltd.|256,373.58|
|Anhui Huapeng Textile Company|1,800,000.00|
|Shenzhen Xinfang Knitting Co.,Ltd.|216,789.85|
|Shenzhen Xiangjiang Trade Co.,Ltd.|40,000.00|
|Shenzhen Changlianfa Printingand dyeing Co., Ltd.|684,824.46|
|Shenzhen Hengsheng InvestmentCo., Ltd.|1,367,940.67|
|Shenzhen Haohao PropertyLeasing Co., Ltd.|3,353,868.07|
|Shenzhen Shenchao TechnologyInvestment Co., Ltd.|23,970,903.52|

 VIII.Share payment
1. General information of stock payment
Various equity instrument amount conferred at current period --- Various equity instrument amount works at current period --- Various equity instrument amount disable at current period --- Price scope and left term of contract about stock option works issued at --- end of the period
Price scope and left term of contract about other equity instrument ---
works issued at end of the period
2.Share payment settled in term of equity
Confirmation method of fair value of equity --- instrument on conforming date
The best estimated confirming method of equity --- instrument
The reason for big difference between estimation at --- current period and estimation at last period
Paid accumulated amount of stock settled on equity in --- capital reserves
Amount of stock payment settled on equity --- 3. Stock payment cleared by cash
Indebted fair value confirmation method confirmed with stock share or other equity
instrument as basis and undertook by company.
Accumulated liability amount produced by stock payment under cash settlement in --- liability
Total costs confirmed by stock payment under cash settlement --- 4. Service paid by shares
Employee services amount acquired via stock payment --- Other services amount acquired via stock payment --- 5. In the report period, there is no revising and termination of share payment
IX. Subsequent events
1.As of December 31,2013，The company has no liabilities formed from pending lawsuit and mediation. 2.As of December 31,2013，The company has no liabilities formed from other units offering.
X. Commitment events.
1.As of December 31, 2013,the company has no important commitment events.
2. As of December 31, 2013, the company has no commitment information guaranteed at the former period. XI. Post-balance-sheet events
1. On March 10,2014，The company has received the payment balance of RMB99,000,000.00 and the
deferred interest of RMB1,386,000.00 from Shenzhen Herun Jewelry Co., Ltd. which is transferred by Shenzhen Jinlan Decorative Articles Industrial Co.,Ltd So, all the payment of equity transferring have been received after the payment of equity transferring of RMB121,000,000.00 received in this period.
2. Notes to profit distribution after the balance sheet day
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.
XII. Other Important events
1.In the reportperiod，the company has no non-monetary asset exchange service.
2.In the reportperiod，the company has no liabilities recombination..
3. In the reportperiod，the company has no enterprise consolidation.
4. In the reportperiod，the company has not large leasing.
5. As of December 31,2013，the company has no financial instruments issued outside and can be transferred to stock at end period.
6. As of December 31,2013，Financial assets and financial liabilities to measurement of fair value.
|||||
|-|-|-|-|
|Amount atthe beginningof period|Gains andlosses fromchange of fairvalue in|Accumulativechange of fairvalue accountedfor as rights and|Provision forimpairmentmade in currentperiod|

Financial assets
||||
|-|-|-|
|70,159,993.69|31,379,697.72|2,947,341.67|
|70,159,993.69|31,379,697.72|2,947,341.67|
|70,159,993.69|31,379,697.72|2,947,341.67|

XIII.Notes s of main items in financial reports of parent company
1.Other receivables
Classification of otherreceivables：
Year-end balance
Classification
Book balance Provision for bad debts
||||
|-|-|-|
|Amount|Proportion(%)|Amount|
|11,981,464.60|6.41|11,981,464.60|

 Other Receivables provided bad debt provision in groups
||||
|-|-|-|
|174,647,803.08|93.42|12,116,413.43|
|174,647,803.08|93.42|12,116,413.43|
|311,486.35|0.17|311,486.35|
|186,940,754.03|100.00|24,409,364.38|

Year-beginning
||||
|-|-|-|
|Book balance|||
|Amount|Proportion(%)|Amount|
|12,075,436.43|33.97|12,075,436.43|

 Other Receivables provided bad debt provision in groups
||||
|-|-|-|
|23,155,396.35|65.15|4,543,963.09|
|23,155,396.35|65.15|4,543,963.09|
|311,486.35|0.88|311,486.35|
|35,542,319.13|100.00|16,930,885.87|

Other receivable account in Group on which bad debt provisions were provided on agebasis：
||||||
|-|-|-|-|-|
|Year-end balance|||||
|Book balance||Provision forbad debts|Book balance||
|Amount|Proportion(%)||Amount|Proportion(%)|
|167,056,373.58|95.65|8,352,818.68|15,438,966.85|66.68|

||||||
|-|-|-|-|-|
||||160,600.00|0.69|
|160,600.00|0.09|48,180.00|109,800.00|0.47|
|7,430,829.50|4.26|3,715,414.75|7,446,029.50|32.16|
|174,647,803.08|100.00|12,116,413.43|23,155,396.35|100.00|

（2）Individual amount is big at end of the period or not big but other account receivable and doubtful reserves shall be withdrawn.
||||
|-|-|-|
|Book balance|Amount ofbad debts|Proportion(%)|
|11,981,464.60|11,981,464.60|100.00%|
|311,486.35|311,486.35|100.00%|
|12,292,950.95|12,292,950.95||

（3）In the report period, The company has reclaimed RMB93,971.83 of theother receivable of provision for bad debts recognized by full payment in prior period.
（4）Other account receivable actually cancelled after verification at this reporting period
（5）As of December 31,2013, no loans of the shareholders holding5% (inclusive of a5%) or more voting right and other related units. ,
(6) The front 5units’ information of Other account receivable
||||
|-|-|-|
|Relation with theCompany|Amount|Ages|
|Non-related parties|99,000,000.00|Within 1 year|
|Subsidiary|57,000,000.00|Within 1 year|
|Non-related parties|11,389,044.60|4-5 years|
|Subsidiary|4,000,000.00|Within 1 year|
||7,168,680.72|4-5 years|
|Subsidiary|5,000,000.00|Within 1 year|
||75,600.00|2-3 years|

||||
|-|-|-|
|Relation with theCompany|Amount|Ages|
||183,633,325.32||

⑺The accounts receivable from the Related parties
|||
|-|-|
|Relation with theCompany|Amount|
|Subsidiary|57,000,000.00|
|Subsidiary|11,168,680.72|
|Subsidiary|5,075,600.00|
|Shareing Company|1,800,000.00|
|Shareing Company|256,373.58|
||75,300,654.30|

（8）Other account receivable that is not accord with expiration confirmation condition is none
（9）Other receivables subject to asset securitization , needed to briefly describe the arrangements related to transactions.
2.Long-term equity investments
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Accountingmethod|Initialinvestmentcost|Originalbalance|change|EndingBalance|Shareholdingproportion intheinvestee|Votingrightproportion intheinvestee|Explanationofdiffidencebetweenshareholdingproportionand votingrightproportionin investee|Devalue|Currentdevalue|
|Costmethod|14,831,681.50|14,831,681.50||14,831,681.50|3.68%|3.68%||14,831,681.50||
|Equitymethod|2,040,102.73|3,665,118.59|-2,835.77|3,662,282.82|50.00%|50.00%||||
|Equitymethod|1,529,483.67|2,976,192.27|348,507.29|3,324,699.56|50.00%|50.00%||266,654.99||
|Equitymethod|2,524,500.00|1,752,210.56|6,240.78|1,758,451.34|40.25%|40.25%||||
|Equitymethod|7,240,625.00|2,587,660.99|268,741.66|2,856,402.65|35.00%|35.00%||||
|Equitymethod|8,228,350.00||||35.00%|35.00%||||
|Costmethod|40,500,000.00|956,663,070.03|760,000,000.00|1,716,663,070.03|100.00%|100.00%||||
|Costmethod|5,470,000.00|5,470,000.00|-5,470,000.00||90.00%|100.00%|Noes 1|||
|Costmethod|6,666,132.60|6,666,132.60|1,407,255.65|8,073,388.25|90.68%|100.00%||||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Accountingmethod|Initialinvestmentcost|Originalbalance|change|EndingBalance|Shareholdingproportion intheinvestee|Votingrightproportion intheinvestee|Explanationofdiffidencebetweenshareholdingproportionand votingrightproportionin investee|Devalue|Currentdevalue|
|Costmethod|30,867,400.00|30,867,400.00||30,867,400.00|100.00%|100.00%||2,167,431.21||
|Costmethod|6,299,700.00|6,299,700.00||6,299,700.00|100.00%|100.00%||82,156.61||
|Costmethod|14,623,003.00|14,623,003.00|866,348.08|15,489,351.08|95.00%|100.00%||||
|Costmethod|1,600,400.00|1,600,400.00|112,786.55|1,713,186.55|93.75%|100.00%||||
|Costmethod|1,260,000.00|1,260,000.00|-1,260,000.00||75.00%|||||
|Costmethod|16,800,000.00|16,800,000.00||16,800,000.00|10.80%|10.80%||16,800,000.00||
|Costmethod|5,491,288.71|5,491,288.71||5,491,288.71|45.00%|45.00%||5,058,307.01||
|Costmethod|2,600,000.00|2,600,000.00||2,600,000.00|2.87%|2.87%||||
|Costmethod|160,000.00|160,000.00||160,000.00|20.00%|20.00%||||
|Costmethod|524,000.00|524,000.00||524,000.00|20.00%|20.00%||||
|Costmethod|2,392,914.37|2,392,914.37||2,392,914.37|17.85%|17.85%||||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Accountingmethod|Initialinvestmentcost|Originalbalance|change|EndingBalance|Shareholdingproportion intheinvestee|Votingrightproportion intheinvestee|Explanationofdiffidencebetweenshareholdingproportionand votingrightproportionin investee|Devalue|Currentdevalue|
|Costmethod|532,062.50|2,559,856.26||2,559,856.26|30.00%||Notes 2|||
|Costmethod|25,000,000.00|25,410,209.50||25,410,209.50|50.00%||Notes 2|||
||197,181,644.08|1,105,200,838.38|756,277,044.24|1,861,477,882.62||||39,206,231.32||

Notes1：In the report period, Mainly caused by transferring100% equity of Shenzhen Jinlan Decorative Articles Industrial Co.,Ltd.
Notes 2. Shenzhen Dailisi underwear Co., Ltd. and Anhui Huapeng textile Co., Ltd. had adopted outsourcing for contractual operation.
3. Business income and Business cost
（1）Business income
||
|-|
|Amount of current period|
|56,383,369.39|
|4,613,872.31|
|60,997,241.70|
|8,547,619.55|
|4,613,872.28|
|13,161,491.83|

（2）Mainbusiness（Industry）
||||
|-|-|-|
|Amount of current period|||
|Business income|Business cost|Business income|
|56,383,369.39|8,547,619.55|53,822,980.63|
|56,383,369.39|8,547,619.55|53,822,980.63|

（3）Mainbusiness（Production）
||||
|-|-|-|
|Amount of current period|||
|Business income|Business cost|Business income|
|56,383,369.39|8,547,619.55|53,822,980.63|
|56,383,369.39|8,547,619.55|53,822,980.63|

（4）Mainbusiness（Area）
||||
|-|-|-|
|Amount of current period|||
|Business income|Business cost|Business income|
|56,383,369.39|8,547,619.55|53,822,980.63|
|56,383,369.39|8,547,619.55|53,822,980.63|

（5）Total income and the ratio of operating income from top five clients
||
|-|
|Business Income|
|26,305,646.05|
|1,074,523.56|

||
|-|
|1,070,100.00|
|1,005,694.98|
|889,440.00|
|30,345,404.59|

 4. Investment income
(1) Details of investment income
||
|-|
|Amount of current period|
|30,305,460.47|
|1,145,653.96|
|209,536,286.00|
|45,135,723.11|
|286,123,123.54|

（2）Long term equity investment calculated to costmethod：
|||
|-|-|
|Amount of currentperiod|Amount of previousperiod|
|676,276.28||
|5,096,339.42||
|11,028,068.57||
|9,839,270.80||
|80,000.00||
|786,200.00|810,000.00|
|1,800,000.00|1,800,000.00|
|843,305.40||
|156,000.00|130,000.00|
|30,305,460.47|2,740,000.00|

（3）Long term equity investment calculated via equity method
|||
|-|-|
|Amount of currentperiod|Amount of previousperiod|
|522,164.23|528,048.22|
|348,507.29|284,675.66|

|||
|-|-|
|6,240.78|-544.71|
|268,741.66|365,676.52|
|1,145,653.96|1,177,855.69|

（4）The disposal income of equity in this period is the profit caused by transferring100% equity of Shenzhen Jinlan Decoration Industrial Co., Ltd.
5. Supplement information of Consolidated Flow Statement
||
|-|
|Amount ofcurrent period|
|231,940,756.06|
|10,427,140.36|
|8,412,911.68|
|600,550.32|
|-4,815,825.02|
|53,829.32|
|52,337.89|
|-286,123,123.54|
|240,476.06|
|52,384,071.50|
|-60,025,112.10|
|-14,959,058.27|

||
|-|
|Amount ofcurrent period|
|-61,811,045.74|
|365,620,681.34|
|33,906,151.53|
|331,714,529.81|

 6. In the reportperiod，The company does not appear using evaluated value entering in an account under reverse purchasing.
XIV. Supplement information
1. Details of extraordinary gains and losses for the current report period
|||
|-|-|
|2013|2012|
|211,668,888.86|30,022.03|
|15,060,086.51|11,526,881.62|

|||
|-|-|
|2013|2012|
|45,135,723.11|2,436,544.20|
|93,971.83||
|4,327,035.16|-3,072,383.76|
|-67,590,093.89|-1,906,879.88|
|208,695,611.58|9,014,184.21|

2. Return on net assets and earnings per share
|||
|-|-|
|Return on net assets .Weighted（%）||
||Basic earnings pershare|

|||
|-|-|
|2.31%|0.10|
|-7.91%|-0.35|

3. The anomalies and the explanation of our main financial statements project
（1）The ending balance of monetary capital increased by RMB 716.8995 million and308.45% over beginning of period mainly because the Company privately issued RMB ordinary shares according to the Approval of Private Issue of Shares of Shenzhen Textile (Holding) Co., Ltd. (Zheng Jian Permit[2013] No. 2 Document) issued by China Securities Regulatory Commission and the funds thus raised have not been completely used;
(2) The ending balance of accounts receivable increased by RMB 37.4809 million and37.13% over beginning of period mainly due to the increase of trade account receivable in credit period;
（3）The ending balance of Prepayments increased by RMB8.3206 million and65.46% over beginning of period mainly due to the result of the prepayment of property purchase for the Company in this period;
（4）The ending balance of other receivable account increased by RMB 89.2012millionand174.67% over beginning of period mainly due to theincrease of transfer balance from equity accounts at the end of period; (5) The ending balance of inventories increased by RMB60.5527 million and42.47% over beginning of period mainly due to the increase of raw materials necessary for Inventory of polarizer;
(6) The ending balance of other current assets increased by RMB 100 million and100% over beginning of period mainly due to the increase of structural deposit of RMB 100 million;
（7）The ending balance of Available for sale financial assets decreased by RMB 28.3310 millionand40.38% over beginning of period mainly due to the reduction of holding*ST Victor Onward A stocks in this period;（8）The ending balance of construction in progress increased by RMB 51.3407 million and443.49% over beginning of period. These funds were mainly invested in the phase-II project of polarizer for TFT-LCD;
（9）The ending balance of Deferred income tax assets increased by RMB 10.55 million and35.66% over beginning of period. Mainly due to the increase of the deferred tax assets recognized due to the temporary deductible difference formulated by the provision of assets impairment rising;
（10）The ending balance of Short-term loan decreased by RMB 40.1534million and100% over beginning of
period Mainly due to the loan for repay the company's current capital ;
（11）The ending balance of Interest payable Increased by RMB 8.8798 million and58.84% mainlydue to the interest on long-term loans payable increased;
（12）The ending balance of Deferred income tax liabilities Increased by RMB47.6322 million and378.13% over beginning of period Mainly due to the result of the increase of the deferred tax debts recognized due to the temporary taxable difference formulated by the transfer income of the equity of Shenzhen Jinlan Decorative Articles Industrial Co.,Ltd.;
（13）The Share capital increased by RMB 170 million because the Company privately issued 170,000,000 RMB ordinary shares (par value per share: RMB 1.00) according to the Approval of Private Issue of Shares of Shenzhen Textile (Holding) Co., Ltd. (Zheng Jian Permit[2013] No.2 Document) issued by China Securities Regulatory Commission;
（14）The ending balance of capital surplus increased by RMB 777.6120 million over beginning of period mainly because the premium of private issue of RMB ordinary shares was accounted for as capital surplus;
（15）The operating income in current period increased by RMB 285.9841 million and33.84% year on year mainly due to the increase of sales of polarizer;
（16）The operating cost in current period increased by RMB 278.8671 millionand34.47% year on year mainly due to the increase of sales cost caused by the growth of polarizer business volume;
（17）Financial expenses in current period decreased by RMB 26.9538 million and6916.38%，mainly due to the increase of bank deposits and interest of the structured deposits, the depreciation of Japanese Yen, the increase of exchange gains and additional Interest income from payable liabilities;
（18）Loss of Assets devalue in current period increased by RMB 79.1706 million and885.33% year on year mainly due to the result of the costs of the finished products and the materials of the polaroid lower than the impairment losses recognized by the net realizable value;
（19）Investment income in crrent period Increased by RMB250.6206 million and3373.98% year on year mainly due to the result of the increase of the deferred tax debts recognized due to the temporary taxable difference formulated by the transfer income of the equity of Shenzhen Jinlan Decorative Articles Industrial Co.,Ltd;（20）Non-business income in current period Increased by RMB 12.3996 million and104.92% year on
year ,Mainly is caused by an increase of the disposal income of fixed assets and the government grants of the current profit and loss;
（21）Income tax expenses in current period Increased by RMB 71.4665 million and428.70% year on year， Mainly is the result of the increase of the temporary taxable difference and the taxable income in this period;（22）The other composite income in current period decreased by RMB 28.5112 million and198.38% year on year because the Company sold financial assets available for sale and transferred out the gains of the preivous period from other composite income.
Legal representative：Person-in-charge of the accountingwork： Person-in -charge of the accountingorgan：
XI．Documents Available for Inspection
1.Financial statements bearing the seal and signature of legal representative 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 29, 2014