2016-03-30-深交所-深纺织Ｂ_2015年年度报告（英文版）_192页_3mb

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

Core Content Overview

This document is the 2015 Annual Report of Shenzhen Textile (Holdings) Co., Ltd., published in March 2016. It outlines the company's financial performance, business operations, strategic initiatives, and governance structure.

Key Information and Definitions

• Company Name: Shenzhen Textile (Holdings) Co., Ltd. (简称“深纺织”)

• Stock Abbreviation: Shen Textile A, Shen Textile B

• Stock Code: Not specified

• Stock Exchange: Shenzhen Stock Exchange

• Legal Representative: Zhu Jun

• Registered Address: 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen

• Postal Code: 518031

• Website: http://www.chinasthc.com

• Email: szfzjt@chinasthc.com

• Key Entities:

  • Shenchao Technology: Shenzhen Shenchao Technology Investment Co., Ltd.
  • Shengbo Optoelectronic: Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
  • Ntto Kogyo: Ntto Kogyo Corporation
  • Actual Controller: National Assets Regulatory Commission of Shenzhen Municipal People's Government
  • Controlling Shareholder: Shenzhen Investment Holding Co., Ltd.

Main Financial Highlights

• Non-recurring Gains and Losses (2015): Total of RMB 100,757,025.01
• No retroactive adjustments were made to the accounting data due to changes in accounting policies or corrections of errors.
• No significant variances were found between quarterly financial indices and the annual report indices.

Main Business and Strategic Development

Main Business Activities in 2015

• The company focused on LCD polarizer, property management, and high-end textile and garment.
• LCD polarizer is a key material in the flat panel display industry, used in smartphones, TVs, tablets, and wearable devices.
• The company's polarizer production lines were expanded, with a 22.7% increase in production capacity compared to the previous year.
• The company also enhanced market research, technical exchange, and customer visits to optimize the second phase project for TFT-LCD polarizer.

Core Competitiveness

• Technology Advantages:
  • Shengbo Optoelectronic is the first domestic company to engage in R&D and production of polarizer.
  • The company has over 20 years of experience in polarizer manufacturing and has core technology in TN, STN, and TFT product fields.
  • By the end of 2015, the company had 63 invention patents and 44 authorized patents (including 13 domestic invention patents and 46 domestic utility model patents).
• Talent Advantages:
  • The company has a strong management and technical team.
  • It has hired overseas technical personnel to support technology innovation.
• Market Advantages:
  • The company has strong customer relationships both domestically and internationally.
  • It benefits from national policies and localization support.
• Quality Advantages:
  • The company adheres to a quality policy of "Satisfying customer demands and pursuing excellent quality".
  • Products have passed ISO9001, ISO14001, OHSAS18000, and QCO80000 certifications.
• Management Advantages:
  • The company has advanced production and quality management systems.
  • It has implemented comprehensive benchmarking and reduced managerial hierarchy.
• Policy Advantages:
  • The company enjoys preferential tax policies and tariff exemptions for imported materials.
  • It has optimized supplier management and procurement strategy to reduce costs and improve competitiveness.

Major Business Developments

• Equity Transfer:
  • The company's subsidiary, Shenzhen Shengbo Optoelectronic Co., Ltd., transferred an 18% stake in Shenzhen Tongyi Silk Co., Ltd., contributing to a significant increase in investment income.
• Property Management:
  • The property companies enhanced leasing efficiency and rental prices.
  • Completed outdoor matching projects and special acceptance for Guan Hua Building.
• "13th Five-Year" Planning:
  • The company initially completed the strategic development plan for the "13th Five-Year".
  • The focus is on expanding the polarizer business and achieving better economies of scale.
• Project Construction:
  • The No.6 line project was continued, while the No.7 line project was terminated due to a funds gap.
  • Funds from No.7 line were redirected to improve liquidity.
  • The second phase project construction scheme was optimized and demonstrated with expert involvement.

Financial Advisors and Auditors

• CPAs Engaged: Peking Certified Public Accountants (Special General Partnership)
• Signatories: Xiao Yi, Lan Tao
• Sponsor for Continuous Supervision: Changjiang Financing Services Co., Ltd. (Supervision period: 2013.3.26–2015.12.31)
• Financial Advisor: Not applicable

Important Notices

• The Board of Directors and Supervisory Committee guarantee the authenticity, accuracy, and completeness of the report.
• Forward-looking statements are not substantial commitments and investment risks should be carefully considered.
• The Company's official media for information disclosure include Securities Times, China Securities Journal, Securities Daily, Shanghai Securities News, Hongkong Commercial Daily, and Juchao Website (http://www.cninfo.com.cn).
• The Company did not issue dividends, bonuses, or capitalize common reserves in 2015.
• The Chinese version of the report shall prevail in case of discrepancies with the English version.

Conclusion

The 2015 Annual Report highlights Shenzhen Textile (Holdings) Co., Ltd.'s efforts in enhancing polarizer production, optimizing business strategies, and leveraging policy advantages. Despite the adverse market conditions, the company managed to turn around its operations and increase profits significantly, primarily due to investment income and improved polarizer efficiency. The company is also positioning itself for future growth through strategic planning and project optimization.