ShenzhenTextile(Holdings)Co.,Ltd. TheFirstQuarterlyReport2019 April2019 1ImportantNotice TheBoardofDirectors,SupervisoryCommittee,alldirectors,supervisorsandseniorexecutivesoftheCompanyherebyguaranteesthattherearenomisstatement,misleadingrepresentationorimportantomissionsinthisreportandshallassumejointandseveralliabilityfortheauthenticity,accuracyandcompletenessofthecontentshereof. OtherdirectorsattendingtheMeetingforannualreportdeliberationexceptforthefollowed: Nameofdirectorabsent Titleforabsentdirector Reasonsforabsent Attorney ZhuJun Chairman Workingreason ZhuMeizhu Mr.ZhuJun,PersoninchargeoftheCompany,Mr.ZhuMeizhu,ChieffinancialofficerandtheMs.MuLinying,thepersoninchargeoftheaccountingdepartment(thepersoninchargeoftheaccounting)herebyconfirmtheauthenticityandcompletenessofthefinancialreportenclosedinthisQuarterlyReport. ThisReporthasbeenpreparedinbothChineseandEnglish,Incaseanydiscrepancy,theChineseversionshallprevail. II.BasicInformationoftheCompany （1）Mainfinancialdataandfinancialindex Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow. □Yes√No InRMB Changesofthisperiodover Thisperiod Sameperiodoflastyear sameperiodoflastyear （％） Operatingincome（RMB） 592,839,958.12 221,307,388.08 167.88% Netprofitattributabletotheshareholders ofthelistedcompany（RMB） 10,381,938.06 5,616,717.00 84.84% Netprofitafterdeductingofnon-recurring gain/lossattributabletotheshareholdersof 7,034,190.76 -4,641,384.38 251.55% listedcompany（RMB） Cashflowgeneratedbybusinessoperation, net（RMB） 23,567,172.13 -35,263,573.85 166.83% Basicearningpershare(RMB/Share) 0.0203 0.0110 84.55% Dilutedgainsper 0.0203 0.0110 84.55% share(RMB/Share)(RMB/Share) WeightedaverageROE(%) 0.43% 0.23% 0.20% Changesofthisperiod-end Endofthisperiod Endoflastperiod oversameperiod-endoflast year(%) Grossassets（RMB） 4,504,910,782.68 4,619,203,416.79 -2.47% Netassetsattributabletotheshareholders ofthelistedcompany（RMB） 2,532,932,438.75 2,373,329,991.86 6.72% Itemsandamountofnon-currentgainsandlosses √Applicable□Notapplicable InRMB Changesofthisperiod-endover Endofthisperiod Endoflastperiod sameperiod-endoflastyear(%) Non-currentassetdisposalgain/loss(includingthewrite-offpart -638.80 forwhichassetsimpairmentprovisionismade) Govemmentsubsidyrecognizedincurrentgainand loss(excludingthosecloselyrelatedtotheCompany’sbusiness 5,552,132.00 andgrantedunderthestate’spolicies) Othernon-operatingincomeandexpenditureexceptforthe 3,080.57 aforementioneditems Less:Amountofinfluenceofincometax 25,005.06 Amountofinfluenceofminorityinterests（Aftertax） 2,181,821.41 Total 3,347,747.30 -- FortheCompany’snon-recurringgain/lossitemsasdefinedintheExplanatoryAnnouncementNo.1on informationdisclosureforCompaniesOfferingtheirSecuritiestothePublic-Non-recurringGainsandLossesanditsnon-recurringgain/lossitemsasillustratedintheExplanatoryAnnouncementNo.1oninformationDisclosureforCompaniesofferingtheirsecuritiestothepublic-non-recurringGainsandlosseswhichhavebeendefinedasrecurringgainsandlosses,itisnecessarytoexplainthereason. □Applicable√Notapplicable NoneofNon-recurringgain/lossitemsrecognizedasrecurringgain/loss/itemsasdefinedbytheinformation disclosureexplanatoryAnnouncementNo.1-Non�Crecurringgain/lossinthereportperiod. II.TotalShareholdersandSharesHeldbyTopTenShareholdersattheEndoftheReportingPeriod 1.AboutTotalCommonShareholders,TotalPreferenceShareholderswiththeVotingPowerRecoveredandtheSharesHeldbyTopTenCommonShareholders Inshares Totalpreferenceshareholderswith Totalnumberofcommon 35,689thevotingpowerrecoveredatthe 0 shareholdersattheperiod-end endofthereportingperiod(ifany) Sharesheldbythetop10shareholders Amountof Pledgingorfreezing Propertiesof Share tradableshares Shareholdername Quantity Statusofthe shareholder proportion% withConditional Quantity shares held Shenzhen Investment State-ownedlegal 45.78% 234,069,436 0 HoldingsCo., person Ltd. Shenzhen Shenchao State-owned Technology 3.15% 16,129,032 0 InvestmentCo., Legalperson Ltd. DomesticNature SunHuiming 0.63% 3,224,767 0 person DomesticNature LiSongqiang 0.56% 2,873,078 0 person DomesticNature ZhengJunsheng 0.36% 1,830,000 0 person DomesticNature KuangGuowei 0.28% 1,453,000 0 person DomesticNature HongFan 0.26% 1,328,900 0 person DomesticNature ZhuYe 0.22% 1,134,145 0 person DomesticNature LiZengmao 0.22% 1,101,200 0 person DomesticNature XiongYan 0.20% 1,000,000 0 person Shareholdingoftop10shareholdersofunrestrictedshares Nameoftheshareholder Quantityofunrestrictedsharesheldattheendofthe Sharetype reportingperiod Sharetype Quantity ShenzhenInvestmentHoldingsCo., RMBCommon 234,069,436 234,069,436 Ltd. shares ShenzhenShenchaoTechnology RMBCommon 16,129,032 16,129,032 InvestmentCo.,Ltd. shares Foreignshares placedin SunHuiming 3,224,767 3,224,767 domestic exchange RMBCommon LiSongqiang 2,873,078 2,873,078 shares RMBCommon ZhengJunsheng 1,830,000 1,830,000 shares RMBCommon KuangGuowei 1,453,000 1,453,000 shares RMBCommon HongFan 1,328,900 1,328,900 shares RMBCommon ZhuYe 1,134,145 1,134,145 shares RMBCommon LiZengmao 1,101,200 1,101,200 shares RMBCommon XiongYan 1,000,000 1,000,000 shares ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.isawholly-ownedsubsidiaryof ShenzhenInvestmentHoldingCo.,Ltd.andapersontakingconcertedaction.Exceptthis,the Companydidnotwhetherthereisrelationshipbetweenthetoptenshareholdersholding Relatedoracting-in-concertparties non-restrictednegotiablesharesandbetweenthetoptenshareholdersholdingnon-restricted amongshareholdersabove negotiablesharesandthetop10shareholdersorwhethertheyarepersonstakingconcerted actiondefinedinRegulationsonDisclosureofInformationaboutShareholdingof ShareholdersofListedCompanies. Explanationonshareholders TheCompanyShareholderLiSongqiangholds2,872,653sharesoftheCompanythrough participatinginthemargintrading stockaccountwithcredittransaction;TheCompanyShareholderZhuYeholds1,031,945 business(ifany) sharesoftheCompanythroughstockaccountwithcredittransaction. Whethertoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldhavea buy-backagreementdealinginreportingperiod. □Yes√No Thetoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldoftheCompanyhavenobuy�Cbackagreementdealinginreportingperiod. 2.Totalnumberofpreferredshareholdersandshareholdingoftop10preferredshareholdersbytheendofthereportperiod □Applicable√Notapplicable IIISignificantEvents I.Majorchangesofmainaccountingstatementitemsandfinancialindicatorsinthereportingperiod,as wellasreasonsforthechanges √Applicable□Notapplicable 1.TheendingbalanceofConstructioninprocessIncreasedbyRMB10.2946millionand65.90%overbeginningofperiod，Mainlybecauseofthecurrentinvestmentincreaseintheline7ofpolarizer; 2.TheendingbalanceofShort-termloansdecreasedbyRMB285.5699millionand69.39%overbeginningofperiod，Mainlybecausethatthecurrentrepaymentofshort-termloansleadstoadecreaseinthebalanceofshort-termloans; 3.OperationrevenueincurrentperiodincreasedbyRMB371.5326millionand167.88%yearonyear，Mainlybecausethatcurrentsettlementoftradetransactionsleadstoincomeincreases; 4.BusinesscostsincurrentperiodincreasedbyRMB351.4396millionand174.49%yearonyear，Mainlybecausethatcurrentsettlementoftradetransactionsleadstoincomeincreases; 5.AssetimpairmentlossincurrentperiodincreasedbyRMB3.2958millionand112.40%yearonyear,Mainlybecausethatwithdrawinginventoryfallingpricereservesincrease; 6.InvestmentgainsincurrentperioddecreasedbyRMB12.2767millionand94.52%yearonyear,Mainlybecausethatthereisnotrustinvestmentintheperiod,andtheinvestmentincomedecreasesaccordingly; 7.OperatingincomeincurrentperiodincreasedbyRMB5.9472millionand84.19%yearonyear,Mainlybecausethatcurrentsettlementoftradetransactionsaffectsprofitoftheperiod; 8.ThenetcashflowsfromoperatingactivitiesincurrentperiodincreasedbyRMB58.8307millionand166.83%yearonyear，Mainlybecausethatthepaymentforgoodshasincreasedcomparedwithlastyear; 9.ThenetcashflowsfromfinancingactivitiesincurrentperioddecreasedbyRMB297.7814millionand2,991.13%yearonyear，Mainlybecausethatrepaymentofbankloanshasincreasedcomparedwiththesameperiod; 10.ThenetcashflowsfrominvestmentactivitiesincurrentperioddecreasedbyRMB413.4722millionand96.06%yearonyear，Mainlybecausethattheamountoffundsrecoveredfrommaturedfinanceproductsinthecurrentperiodhasdecreasedcomparedwiththepreviousperiod. II.Theprogressofsignificanteventsandinfluence,aswellastheanalysisandexplanationonresolvingproposal. √Applicable□Notapplicable (1)ProgressinInvestmentandConstructionofPolarizerIndustrializationProject(Line7)forUltra-Large-SizeTelevision Duringthereportingperiod,theprojectofLine7hascompletedthesigningofconstructioncontractsforextensionmachines,AGV,coatedpressuresensorsandwastewatertreatmentequipment,andthecivilengineeringconstructionofLine7beganonApril18,2019.AsofMarch31,2019,theprojectofLine7hasactuallypaid354.307millionyuanforinvestment(157.627millionyuanforraisingfunds,196.675millionyuanforself-ownedfundsandgovernmentfunds). (2)TheterminationofShengboOptoelectronicCompany'sintroductionofstrategicinvestors ThecompanyheldtheTwelfthMeetingoftheseventhboardofdirectorsonJune1,2018.Itconsideredand adoptedtheBillonShenzhenShengboPhotoelectricTechnologyCo.,Ltd.toincreasecapitalandsharetointroducestrategicinvestors.ItagreedthatShengboPhotoelectricCompany,asubsidiarycompany,wouldincreasecapitalandsharebyaddingcapitalandtakingtheresultsofassetsassessmentasthebasis,andinaccordancewiththeregulationofstate-ownedassets,conductjointpropertyrightstransactionsinShenzhen.Nomorethanfivestrategicinvestorsarepubliclyrecruitedandthefinalstrategicinvestorsaredeterminedthrough competitive negotiations. See Bulletin No. 2018-24 of Giant Tide Information Network (http://www.cninfo.com.cn). DuringthepromotionofShengboPhotoelectricCompany'sintroductionofstrategicinvestors,thecompanyactivelyconsultedwithinterestedinvestorstoincreasecapital.However,duetothechangesofdomesticinvestmentenvironmentandfinancialpolicy,thecapitaloffinancialmarkettendstobetense,investors'investmentdecisionstendtobecautious,andthecooperationconditionsofintendinginvestors,thecompanycontinuedtopromoteShengboPhotoelectricCompany'sintroductionofcapitalexpansion.Strategicinvestorsarefacedwithgreateruncertainty.Inviewofthefactthatthecompanyhasnotyetreachedanagreementwithanyinterestedinvestorsonspecificcapitalincreasecooperation,andtakingintoaccounttheabovefactors,thecompanyheldthe16thmeetingoftheseventhboardofdirectorsonJanuary29,2019,andconsideredandadoptedtheBillontheSubsidiaryShengboPhotoelectricTechnologyCo.,Ltd.toterminatecapitalincreaseandshareincreasetointroducestrategicinvestors.ThecompanyagreedtoterminateShengboguang,thesubsidiary.Theintroductionofstrategicinvestorissuesinelectricitycapitalincreaseandstockexpansion.SeeBulletinNo.2019-02andNo.2019-03ofJuchaoInformationNetwork(http://www.cninfo.com.cn)fordetails. (3)MattersrelatingtocapitalincreaseandrelatedtransactionsofShenzhenGuanhuaPrintingandDyeingCo.,Ltd. InordertosmooththeequityrelationshipbetweenShenzhenGuanhuaPrintingandDyeingCo.,Ltd.andGuanhuaBuilding,thecompanyandQiaohuiIndustrialCo.,Ltd.signedanequitytransferagreementtotransfer5.16%ofthesharesofShenzhenGuanhuaPrintingandDyeingCo.,Ltd.andcompletedtheequitytransfer.Afterthetransfer,thecompanyandQiaohuiIndustrialCo.,Ltd.hold50.16%and49.84%ofthesharesofShenzhenGuanhuaPrintingandDyeingCo.,Ltd.OnFebruary28,2019,inordertoimprovetheinvestmentobligationsoftheshareholdersofShenzhenGuanhuaPrintingandDyeingCo.,Ltd.,thecompanyandQiaohuiIndustrialCo.,Ltd.increasedthecapitalofShenzhenGuanhuaPrintingandDyeingCo.,Ltd.accordingtotheproportionof50.16%and49.84%oftherightsandinterestsoccupiedbythebuildingsofGuanhuaBuilding,respectively,andthecorrespondingevaluationvalueofthebuildingsofGuanhuaBuildingwas49.9351millionyuanand49.616millionyuan.ShenzhenGuanhuaPrintingandDyeingCo.,Ltd.signedtheCapitalIncreaseAgreementwithQiaohuiIndustryCo.,Ltd.andShenzhenGuanhuaPrintingandDyeingCo.,Ltd.Afterthecapitalincreaseiscompleted,ShenzhenGuanhuaPrintingandDyeingCo.,Ltd.isanenterprisejointlycontrolledbythecompanyandQiaohuiIndustryCo.,Ltd.SeetheannouncementofJuchaoInformationNetwork(http://www.cninfo.com.cn)Co.,Ltd.2019-07.Uptothedisclosuredateofthisreport,ShenzhenGuanhuaPrintingandDyeingCo.,Ltd.hasobtainedthe"RealPropertyRegistrationCertificate"ofGuanhuaBuilding,andtheregistrationproceduresforthechangeofshareholdingrightsandtheincreaseofregisteredcapitalhavebeencompleted. Announcement Dateofdisclosure Websitefordisclosure Mattersontheendofcapitalandshare increaseandintroductionofstrategic http//www.cninfo.com.cn.Announcement January30,2019 investors to the subsidiary SAPO No.2019-03 Photoelectric MattersonthecapitalincreaseandrelatedMarch1,2019 http//www.cninfo.com.cn.Announcement transactionsofthejointstockcompany, No.2019-07 ShenzhenGuanhuaPrinting&DyeingCo., Ltd. Progressintheimplementationofsharerepurchase □Applicable√Notapplicable Progressintheimplementationofthereductionoftherepurchasedsharesbymeansofcentralizedbidding □Applicable√Notapplicable III.CommitmentsfinishedinimplementationbytheCompany,shareholders,actualcontroller,acquirer,directors,supervisors,seniorexecutivesorotherrelatedpartiesinthereportingperiodandcommitmentsunfinishedinimplementationattheendofthereportingperiod √Applicable□Notapplicable Timeof Commitmen making Periodof Fulfill Commitment Type Contents tmaker commit commitment ment ment AsShenzhenInvestmentHoldingsCo.,Ltd.,the controllingshareholderofthecompany, committedwhentherestricted-for-saleshares fromthesharesrestructuringwerelistedfor circulationinthemarket:i.iftheyplantosellthe sharesthroughthesecuritiesexchangesystemin Shenzhen Share thefuture,andthedecreaseofthesharesthey Under Commitmenton Investment reduction August Sustainedand holdreaches5%within6monthsafterthefirst Fulfill sharereform Holdings commitme 4,2006effective decrease,theywilldiscloseanannouncement ment Co.,Ltd. nt indicatingthesalethroughthecompanywithin twotradingdaysbeforethefirstdecrease;ii.They shallstrictlyobservethe“GuidelinesonTransfer ofRestricted-for-saleOriginalSharesofListed Companies”andtheprovisionsoftherelevant businessprinciplesofShenzhenStockExchange. Commitmentinthe acquisitionreportor thereportonequity changes Commitmentmade upontheassets replacement Shenzhen CommitmShenzhenInvestmentHoldingsCo.,Ltd.signedaOctober Under CommitmentsmadeInvestment entson “LetterofCommitmentandStatementon 9, Sustainedand Fulfill uponissuance Holdings horizontalHorizontalCompetitionAvoidance”whenthe effective 2009 ment Co.,Ltd. competitiocompanyissuednon-publicstocksin2009. n,relatedPursuanttotheLetterofCommitmentand transactionStatement,ShenzhenInvestmentHoldingsCo., andcapitalLtd.anditswhollyownedsubsidiary,subsidiaries occupationundercontroloranyothercompaniesthathave actualcontrolofitshallnotbeinvolvedinthe businessthesameasorsimilartothoseShenzhen Textilecurrentlyorwillruninthefuture,orany businessesoractivitiesthatmayconstitutedirect orindirectcompetitionwithShenzhenTextile;if theoperationsofShenzhenInvestmentHoldings Co.,Ltd.anditswhollyownedsubsidiaries, subsidiariesundercontrolorothercompaniesthat haveactualcontrolofitcompetewithShenzhen Textileinthesameindustryorcontradictthe interestoftheissuerinthefuture,Shenzhen InvestmentHoldingsCo.,Ltd.shallurgesuch companiestoselltheequity,assetsorbusinessto ShenzhenTextileorathirdparty;whenthe horizontalcompetitionmayoccurduetothe businessexpansionconcurrentlynecessaryfor ShenzhenInvestmentHoldingsCo.,Ltd.andits whollyownedsubsidiaries,subsidiariesunder controlorothercompaniesthathaveactual controlofitandShenzhenTextile,Shenzhen Textileshallhavepriority. Thecommitmentsduringtheperiodnon-public issuancein2012:1.ShenzhenInvestment Holdings,asthecontrollingshareholderof ShenzhenTextile,currentlyhasn'ttheproduction andbusinessactivitiesofinter-industry CommitmcompetitionwithShenzhenTextileorits entson share-holdingsubsidiary.2.ShenzhenInvestment Shenzhen horizontalHoldingsanditsshare-holdingsubsidiariesor otherenterprisesownedtheactualcontrolrights July14, Under Investment competitio Sustainedand can'tbedirectlyandindirectlyonbehalfofany Fulfill Holdings n,related 2012 effective person,companyorunittoengageinthesameor ment Co.,Ltd. transaction andcapitalsimilarbusinessinanydistrictsinthefutureby occupationtheformofshare-holding,equityparticipation, jointventure,cooperation,partnership,contract, lease,etc.,andensurenottousethecontrolling shareholder'sstatustodamagethelegitimate rightsandinterestsofShenzhenTextileandother shareholders,ortogaintheadditionalbenefits.3. Iftherewillbethesituationofinter-industry competitionwithShenzhenTextileforShenzhen InvestmentHoldingsanditsshare-holding subsidiariesorotherenterprisesownedtheactual controlrightsinthefuture,ShenzhenInvestment Holdingswillpromotetherelatedenterprisesto avoidtheinter-industrycompetitionthroughthe transferofequity,assets,businessandotherways. 4.Abovecommitmentswillbecontinuously effectiveandirrevocableduringShenzhen InvestmentHoldingsasthecontrolling shareholderofShenzhenTextileorindirectly controllingShenzhenTextile. 1.Thecompanyundertakesnottoprovideloans, loanguarantees,andanyotherformsoffinancial assistancetotheincentiveobjectsforobtaining Shenzhen Other therestrictedstocksintheincentiveplan;2.The Novemb Under Equityincentive Textile(Hold December commitmecompanyundertakesthatthereisnocircumstanceer Fulfill commitment ings)Co., 27,2021 nt thatthestockincentiveshallbeprohibitedas 27,2017 ment Ltd. stipulatedintheprovisionsofArticle7ofthe “MeasuresfortheManagementofStock IncentivesofListedCompanies”. Othercommitments madetominority shareholders Executedtimelyor Yes not? Ifthecommitments failedtocomplete theexecutionwhen expired,should specificallyexplainNotapplicable thereasonsof unfulfillmentand thenetstageofthe workingplan IV．PredictionofBusinessperformanceforJanuary-June2019 Estimationofaccumulativenetprofitfromthebeginningoftheyeartotheendofnextreportperiodtobelossprobablyorthewarningofitsmaterialchangecomparedwiththecorrespondingperiodofthelastyearandexplanationofreason. □Applicable√Notapplicable V.Investmentinsecurities □Applicable√Notapplicable Nosecuritiesinvestmentinperiod. VI.Investmentsinderivatives □Applicable√Notapplicable Thereisnoderivativeinvestmentduringthereportperiod. VII.Theregistrationformofacceptanceofinvestigation,communicationandinterviewinthereportperiodforfuturereference □Applicable√Notapplicable ThePeriodhasnoresearch,communicationandwritteninquiryfromtheinvestorsinthereportperiod. VIII.OutwardGuaranteeagainsttheRegulations □Applicable√Notapplicable TheCompanyhasnoexternalguaranteegetoutofthelineinthePeriod IX.Controllingshareholderanditsrelatedpartiesoccupyingnon-businesscapitalofthelistedcompany □Applicable√Notapplicable Therearenocontrollingshareholderanditsrelatedpartiesoccupyingnon-businesscapitalofthelistedcompanyinPeriod TheBoardofDirectorsofShenzhenTextile(Holdings)Co.,Ltd. April27,2019