深纺织Ｂ：2021年半年度报告（英文版）.PDF

1 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2021 August 2021Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2021 2 I. Important Notice, Table of Contents and Definitions The Board of Directors，the Supervisory Committee, the directors, the supervisors, and executives of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report. Ms. Zhang Jian, The Company leader, Mr. He Fei, Chief financial officer and the Ms.Zhu Jingjing, 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 the semi-report. All the directors attended the board meeting for the review of this Report. I. 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. The company has the macroeconomic risks, market competition risks and raw material risks. Investors are advised to pay attention to investment risks. For details, please refer to the possible risk factors that the company may face in the X Risks facing the Company and countermeasures in the Section III Management Discussion & Analysis. III. The company to remind the majority of investors，Securities Time, China Securities Journal, Securities Daily, Shanghai Securities News , Hongkong Commercial Daily and Juchao Website （http:/） are the media for information disclosure appointed by the Company, all information under the name of the Company disclosed on the above said media shall prevail, and investors are advised to exercise caution of investment risks. The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either. This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall prevail. Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2021 3 Table of Contents I.Important Notice, Table of contents and Definitions II. Company Profile & Financial Highlights. III. Management Discussion & Analysis IV. Corporate Governance V. Environmental & Social Responsibility VI. Important Events VII. Change of share capital and shareholding of Principal Shareholders VIII. Situation of the Preferred Shares IX. Corporate Bond X. Financial Report Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2021 4 Documents available for inspection 1.Financial statements bearing the seal and signature of legal representative, General Manaager and financial controller; 2.The originals of all the Companys documents and the original manuscripts of announcements publicly disclosed on the newspapers designated by China Securities Regulatory Commission in the report period. 3. Other relevant information The above documents were completely placed at the Office of Secretaries of the Board of Directors of the Company. Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2021 5 Definition Terms to be defined Refers to Definition Company/The Company/ Shen Textile Refers to Shenzhen Textile (Holdings) Co., Ltd Articles of Association Refers to Articles of Association of Shenzhen Textile (Holdings) Co., Ltd Actual controller / National Assets Regulatory Commission of Shenzhen Municipal Peoples Government Refers to National Assets Regulatory Commission of Shenzhen Municipal Peoples Government The Controlling shareholder/ Shenzhen Investment Holding Co., Ltd. Refers to Shenzhen Investment Holding Co., Ltd. Shenchao Technology Refers to Shenzhen Shenchao Technology Investment Co., Ltd. SAPO Photoelectric Refers to Shenzhen SOPO Photoelectric Co., Ltd. Jinjiang Group Refers to Hangzhou Jinjiang Group Co., Ltd. Nitto Denko Refers to Nitto Denko Corporation Kunshan Qimei Refers to Kunshan Zhiqimei Material Technology Co., Ltd. Beauty Century Refers to Shenzhen Beauty Century Garment Co., Ltd. Shenzhen Xieli Refers to Shenzhen Xieli Auto Co., Ltd. Jinxin Investment Refers to Lanxi Jinxin Investment Management Co., Ltd. Changxing Junying Refers to Changxing Junying Eqkuity Investment Partnership（LP） Huaiji Investment Refers to Hangzhou Huaiji Investment Management Co., Ltd. Shenzhen Textile Import & export Refers to Shenzhen Textile Import & export Co., Ltd. Jinhang Investment Refers to Hangzhou Jinhang Investment Fund Partnership（LP） Advantage ford Refers to Suzhou Advantage ford Investment Center（LP） Line 4 Refers to T TFT-LCD polarizer II phase Line 4 project Line 5 Refers to TFT-LCD polarizer II phase Line 5 project Line 6 Refers to TFT-LCD polarizer II phase Line 6 project Line 7 Refers to Industrialization project of polaroid for super large size TV “CSRC” Refers to China Securities Regulatory Commission Company Law Refers to Company Law of the Peoples Republic of China Securities Law Refers to Securities Law of the Peoples Republic of China The Report Refers to The Semi-annual Report 2021 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2021 6 I. Company Profile & Financial Highlights. 1.Company Profile Stock abbreviation Shen Textile A ,Shen Textile B Stock code 000045,200045 Stock exchange for listing Shenzhen Stock Exchange Name in Chinese 深圳市纺织(集团)股份有限公司 Chinese abbreviation (If any) 深纺织 English name (If any) SHENZHEN TEXTILE (HOLDINGS) CO., LTD English abbreviation (If any) STHC Legal Representative Zhang Jian II. Contact person and contact manner Board secretary Securities affairs Representative Name Jiang Peng Li Zhenyu Contact address 6/F, Shenzhen Textile Building, No.3 Huaqiang North Road, Futian District, Shenzhen 6/F, Shenzhen Textile Building, No.3 Huaqiang North Road, Futian District, Shenzhen Tel 0755-83776043 0755-83776043 Fax 0755-83776139 0755-83776139 E-mail III. Other (1)Way to contact the Company Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not Applicable Not Applicable The registered address, office address and their postal codes, website address and email address of the Company did not change during the reporting period. The said information can be found in the 2020 Annual Report. （2）Information inquiry Whether information disclosure and preparation place changed in reporting period or not Applicable Not applicable None of the official presses, website, and place of enquiry has been changed in the semi report period. For details please find the Annual Report 2020. Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2021 7 IV. Summary of Accounting data and Financial index May the Company make retroactive adjustment or restatement of the accounting data of the previous years Yes No Reporting period Same period of last year YoY+/-（%） Operating income（RMB） 1,101,536,407.38 856,313,348.74 28.64% Net profit attributable to the shareholders of the listed company（RMB） 76,603,074.39 719,734.74 10,543.24% Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（RMB） 61,814,528.89 -7,117,945.43 968.43% Cash flow generated by business operation, net（RMB） -52,643,536.25 -135,619,475.23 61.18% Basic earning per share(RMB/Share) 0.1509 0.0014 10,678.57% Diluted gains per share(RMB/Share)(RMB/Share) 0.1509 0.0014 10,678.57% Weighted average ROE(%) 2.74% 0.03% 2.71% As at the end of the reporting period As at the end of last year YoY+/-（%） Total assets（RMB） 5,181,566,725.34 4,969,547,552.23 4.27% Net assets attributable to shareholder of listed company（RMB） 2,822,952,777.84 2,766,234,174.39 2.05% V. Differences between accounting data under domestic and overseas accounting standards 1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese accounting standards. Applicable Not applicable No difference. 2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards. Applicable Not applicable The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period. VI. Items and amount of deducted non-current gains and losses Applicable Not applicable Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2021 8 In RMB Items Amount Notes Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) -55.96 Government subsidy recognized in current gain and loss(excluding those closely related to the Companys business and granted under the states policies) 8,764,569.01 Other benefits of government subsidies that are confirmed related to the main business. Other non-business income and expenditures other than the above 20,092,473.46 It is mainly for carrying forward unpaid payables and insurance claims income. Less :Influenced amount of income tax 4,360,819.11 Influenced amount of minor shareholders equity (after tax) 9,707,621.90 Total 14,788,545.50 - For the Companys non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason. Applicable Not applicable None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non recurring gain/loss in the report period. Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2021 9 III. Management Discussion & Analysis I.Main Business the Company is Engaged in During the Report Period 1.The companys main business The companys main business covered such the high and new technology industry as represented by LCD polarizer, its own property management business and the retained business of high-end textile and garment. During the reporting period, the company strengthened marketing and R&D efforts, and established long-term cooperative relations with downstream leading customers such as Huaxing Optoelectronics, HKC and LGD to further optimize customer and product structure and enhance risk resistance and profitability; Secondly, it continued to promote cost reduction and quality improvement, and reduced costs and improved product quality through various measures such as improving machine speed, equipment and technology transformation, upgrading the automation level in the back stage, broadening procurement channels, and optimizing logistics distribution methods; Thirdly, it continued to overcome the adverse effects of the COVID-19 epidemic, and fully promoted the construction of the industrialization project of ultra-large-size TV polarizers (Line 7, which has completed the chemical test run and was officially put into production in July, and has now been consolidated and entered mass production stage); Fourthly, it effectively revitalized the existing assets. The company implements the transfer and liquidation work for the poorly managed shareholding enterprises and concentrated on developing the main business of polarizers; Fifthly, it implemented epidemic prevention and control work, paid attention to safe and green production, focused on rectification, elimination of safety and environmental protection issues, and promoted the safe and stable development of enterprises. During the reporting period, the company achieved an operating income of RMB 1.102 billion, with a year-on-year increase of 28.64%; It realized a total profit of RMB 121 million, with a year-on-year increase of 3,349.62%; The net profit attributable to shareholders of listed companies was RMB 76,603,100, with a year-on-year increase of 10,543.24% . During the reporting period, the net profit attributable to shareholders of listed companies increased significantly compared with the same period of last year. The main reasons are as follows: Firstly, the polarizer market continued to improve in the first half of this year, and the sales volume and unit price of products increased. The company continued to optimize the order structure and the average gross profit margin increased. The main polarizer business achieved sustained profit in the first half of the year; Secondly, in the same period last year, the company responded to the COVID-19 epidemic and supported enterprises to tide over the difficulties. The company actively followed the call of Shenzhen Municipal Party Committee and Municipal Government and State-owned Assets Supervision and Administration Commission to reduce the rent of some tenants in February and March 2020, and the rental income in this period increased significantly year on year. 2.Main products and their purposes Polarizers are the upstream raw material of LCD panels and one of the key basic materials in the flat panel display industry. They are mainly used in TV, NB, navigator, Monitor, automotive, industrial control, Instruments, smart phones, wearable devices, 3D glasses, sunglasses and other products, the company has become a mainstream panel company such as Huaxing Optoelectronics, BOE, Sharp, LGD, Shenzhen Tianma, Huike, etc. by continuously strengthening sales channel expansion and building its own brand. Qualified suppliers. The Companys main products made in each polarizer production line and their application are as follows: Line Place Product breadth Planned capacity Main projuct Line 1 Pingshan 500mm 600，000 m2 TN/STN/ Dye sheet Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2021 10 Line 2 Pingshan 500mm 1.2 million m2 TN/STN/CSTN Line 3 Pingshan 650mm 1 million m2 TFT Line 4 Pingshan 1490mm 6 million m2 TFT Line 5 Pingshan 650mm 2 millin m2 TFT Line 6 Pingshan 1490mm 10 million m2 TFT/OLED Line 7 Pingshan 2500mm 32 millin m2 TFT/OLED 3.Companys business model The polarizer industry has gradually shifted from a traditional business model of R&D, production, and sales to a customer-centric, joint research and development, and comprehensive service business model. By understanding customer needs, joint research and develop, manage high-standard production, manufacture high-quality products, use advanced polarizer roll and attaching equipment to cooperate with downstream panel manufacturers production lines, reduce production links, reduce production and transportation costs, and create value for customers, win-win. 4. Major factors for driving the Companys performance Refer to II. Analysis on core competitiveness i