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神州长城(000018)公告正文

ST中冠B:2012年半年度报告(英文版)

公告日期:2012-08-16

                            深圳市纺织(集团)股份有限公司 2012 年半年度报告全文
    深圳中冠纺织印染股份有限公司Shenzhen Victor Onward Textile Industrial Co., Ltd.
       2012年半年度报告
      The Semiannual Report 2012
             August 14, 2012
                                                       深圳市纺织(集团)股份有限公司 2012 年半年度报告全文
                                   Important NotesThe board of directors and directors of the Company hereby guarantees that there are no falserecords, misleading representation or important omissions in this report and shall assume joint andseveral liability for the authenticity, accuracy and completeness of the contents hereof.Hu Yongfeng, Chairman of the Board of Directors and General Manager, Mr.Zhang Jinliang,Deputy GeneralManager and Mr. Ren Changzheng, Manager of Finance Department represent and warrant the financial andaccounting report in the Semi-annual report is true and complete.
    The financial report of the semi-annual report has not been audited.
                                                          深圳市纺织(集团)股份有限公司 2012 年半年度报告全文
                                             Table of contentsI. Brief Introduction of the CompanyII. Highlights of Accounting Data and Business DataIII. Change of Share Capital and Shareholding of Principal ShareholdersIV. Information about Directors, Supervisors and Senior ExecutivesV. Report of the Board of DirectorsVI. Important EventsVII. Financial Report (unaudited)VIII. Documents Available for Inspection
                                                                    深圳市纺织(集团)股份有限公司 2012 年半年度报告全文I Basic Information of the Company(1)Company information
    Code of A-Stock             000018                                 Code of B-Stock           200018
    Stock A abbreviation        ST Victor   Onward A                   Stock B abbreviation      ST Victor    Onward B
    Stock exchange for          Shenzhen Stock ExchangelistingStatutory name of the
                            深圳中冠纺织印染股份有限公司Company in Chinese:
    Chinese abbreviation        中冠Statutory name of the
                            Shenzhen Victor Onward Textile Industrial Co., LtdCompany in English
    English abbreviation        VICTOR ONWARD
    Legal representative        Hu YongfengRegistered address
                            No. 26, Kuipeng Road, Baishigang, Kuiyong Town, Longgang District,
                            Shenzhen
    Zip Code                    518119Office Address:
                            No. 26, Kuipeng Road, Baishigang, Kuiyong Town, Longgang District,
                            Shenzhen
    Zip Code                    518119
    Website:                    http://www.chinaszvo.com
    E-mail                      szvo@chinaszvo.com
    (2)Contact      person and contact manner
                                                     Board secretary                 Securities affairs Representative
    Name                                    Zhang Jinliang                           Wu Xia
                                        Room 1308, Hualian Building, Room 1308, Hualian Building,Contact address
                                        No.2008 Shennan Zhong Road, No.2008 Shennan Zhong Road,
                                        Shenzhen                     Shenzhen
                     Tel                (755)83668425                          (755)83667895
                     Fax                (755)83668427                          (755)83668427
                  E-mail                zhangjl@udcgroup.com                     wux@udcgroup.com(3)Information disclosure and placedNewspapers selected by the
                                          Securities Times and Hong Kong Commercial DailyCompany for informationdisclosureInternet website designated by
    CSRC for publishing the Interim           http: // www.cninfo. com. cnreport of the Company
                                                                           深圳市纺织(集团)股份有限公司 2012 年半年度报告全文
                                                Room 1308, Hualian Building, No.2008 Shennan Zhong Road,The place where the Interim report is
    prepared and placed                             ShenzhenIII. Highlights of financial data and indicators(1)Highlights of financial data and indicatorsWhether retroactive adjusted on previous financial report or not□ Yes √ NoMain accounting data
                                                                                                               Increase/decrease in this
                                                  Reporting period
        Highlights accounting data                                             Same period of last year              report period
                                                  (January-June)
                                                                                                                   year-on-year(%)
    Operating Gross income                                         5,019,787                        5,528,810                         -9.21%
    Operating profit                                              -1,234,684                       -8,268,334                        -85.07%
    Total profit                                                  -4,187,136                       -8,261,438                        -49.32%Net profit attributable to the shareholders
                                                              -4,187,136                       -8,232,521                        -49.14%of the listed companyNet profit after deducting of non-recurring
    gain/loss attributable to the shareholders of                 -1,245,706                       -8,253,558                        -84.91%listed companyCash flow generated by business operation,
                                                                   165,989                        815,584                        -79.65%net
                                                  End of report year            At the end of last year       Changed over last year(%)
    Gross Assets                                                 171,027,553                     172,238,794                            -0.7%Shareholders equity attributable to
                                                             114,740,763                     119,047,096                          -3.62%shareholders of the listed company
    Capital stock                                                169,142,356                     169,142,356                              0%2.Main financial indices
                                                                                                               Increase/decrease in this
                                                  Reporting period
           Main financial indices                                              Same period of last year              report period
                                                  (January-June)
                                                                                                                   year-on-year(%)
    Basic gains per share(RMB/Share)                                       -0.02                         -0.05                          -60%
    Diluted gains per share(RMB/Share)                                     -0.02                         -0.05                          -60%Basic earning per share after deducting of
                                                                       -0.01                         -0.05                          -80%non-recurring gains/losses(RMB/Share)
    Diluted return on equity (%)                                     -3.65%                         -6.27%                           2.62%
    Weighted average return on equity(%)                             -3.58%                         -5.93%                           2.35%Diluted return on equity after deducting
                                                                   -1.09%                         -6.45%                           5.36%non-recurring gains and losses(%)Net income on asset, weighted and
                                                                   -1.07%                           -6.1%                          5.03%deducted non-recurring gain/loss(%)Net cash flow per share generated by
                                                                          0                               0                           0%business operation (RMB/Share)
                                                  End of report year            At the end of last year       Changed over last year(%)Net asset per share attributable to
    shareholders of the listed                                             0.67                          0.78                         -14.1%company(RMB/Share)
    Assets liabilities ratio(%)                                        33.71%                         31.68%                           2.03%
                                                                           深圳市纺织(集团)股份有限公司 2012 年半年度报告全文The information of main accounting data and main financial indices of the company by the end ofreport period.(Filling the adjustment explanation if retroactive adjusted)(II)The differences between domestic and international accounting standards1.Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosedin the financial reports of differences in net income and net assets.√Applicable□ Not applicable
                                                                                                                             Unit:RMB
                                 Net profit attributable to shareholders of the listed Owner equity attributable to shareholders of the
                                                       company                                        listed company
                                                                                                                 Beginning of the report
                                      Current term            Same period last year    End of the report year
                                                                                                                         yearPursuant to Chinese
                                                -4,187,136                -8,232,521               114,740,763              119,047,096accounting standardsSubitem and total adjusted pursuant to international accounting standards:Switch back the part of HongKong house property
                                                   55,329                     57,256                -6,607,922               -6,626,459assessment in accordance withIASPursuant to International
                                                -4,131,807                -8,204,182               108,132,841              112,420,637accounting standards2. Simultaneously pursuant to both Chinese accounting standards and overseas accounting standards disclosed inthe financial reports of differences in net income and net assets.□ Applicable√ Not applicable3. Significant differences between line items
                                                                                                        Explanation on IAS and (or)
    Items with major differences      Amount involved (RMB)              Reasons for differences        foreign accounting standards
                                                                                                                  involved4. The explanation of accounting data from the Statement on differences between the IAS and Domesticaccounting StandardThe influence of appreciation through appraisal of workshop and 2 parking spaces in Hong Kong in 1992.(III)Items and amount of deducted non-current gains and losses√Applicable□ Not applicable
                            Items                                 Amount(RMB)                             Notes
    Gain/loss form disposal of non-current assets                                    5,174Tax refund, deduction and exemption that is examined andapproved by authority exceeding or has no official approvaldocument.Governmental Subsidy accounted as current gain/loss,except for those subsidies at with amount or quantity fixedby the national government and closely related to the
                                                                          深圳市纺织(集团)股份有限公司 2012 年半年度报告全文Companys business operation.Capital occupation fee collected from non-financialorganizations and accounted as current gain/loss.Income from the exceeding part between investment cost ofthe Company paid for obtaining subsidiaries associates andjoint-ventures and recognizable net assets fair valueattributable to the Company when acquiring the investment.Non-monetary asset exchange gain/loss.Gain/loss investment of CommissionAsset impairment provisions for force major such as naturaldisastersGain/loss from debt reorganizationEnterprise reorganization expenses, such as payment to stuffplacement and consolidation expensesGain/loss from trades obviously departed from fair valueNet gain/loss of current term from consolidation ofsubsidiaries under common control from beginning of termto the consolidation dateGain/loss from debt forcasting without connection to themain business operationIn addition to normal business with the company effectivehedging related business, holders of tradable financialassets, transactions and financial liabilities arising from
    changes in fair value gains and losses, as well as the                         11,022disposal of trading of financial assets, trading financialliabilities and available-for-sale financial assets gains returnon investment;Single impairment test for impairment of receivablestransferred back to preparationCommissioned external loans by the Gain/lossThe use of fair value measurement model of follow-up tothe fair value of real estate investment gains and lossesarising from changesAccording to tax, accounting and other laws, regulations,the requirements of the current Gain/loss for a one-timeadjustment of the impact of the current Gain/loss;Entrusted with the operating of the trust to obtain feeincomeNet amount of non-operating income and expense except
                                                                           -2,957,626the aforesaid itemsOther non-recurring Gains/loss itemsAmount of influence of minority interestsAmount of influence of income tax
    Total                                                                      -2,941,430                        --Statement of the Company on “ Other gain/loss items satisfying the definitions of non-recurring gain/loss accounts” and thenon-recurring items defined as recurring items according to the nature and characteristics of the businesses.
             Items               Amount involved (RMB)                                     Remarks
             III. Particulars about the Changes of Share Capital and Shareholders(1)Particulars about the Changes of Share Capital
                                                                            深圳市纺织(集团)股份有限公司 2012 年半年度报告全文1.Statement of changes in shares√Applicable□ Not applicable
                                Before the change                   Increase/decrease(+,-)                             After the Change
                               Amount Proportion                                Capitalizat
                                                                                   ion of
                                                        Share      Bonus                                                             Proportio
                                                                                 common       Other       Subtotal       Quantity
                                                      allotment    shares                                                               n
                                                                                  reserve
                                                                                    fundI. Share with conditional
                                       0        0%            0             0            0            0              0          0          0%subscription
    1.State-owned shares                   0        0%            0             0            0            0              0          0          0%2.Staee-owned legal
                                       0        0%            0             0            0            0              0          0          0%person shares
    3.Other domestic shares                0        0%            0             0            0            0              0          0          0%Of which:Domestic
    Non-state –owned legal                0        0%            0             0            0            0              0          0          0%person sharesDomestic natural person
                                       0        0%            0             0            0            0              0          0          0%shares4.Share held by foreign
                                       0        0%            0             0            0            0              0          0          0%investorsOf which:Foreign legal
                                       0        0%            0             0            0            0              0          0          0%person sharesForeign natural person
                                       0        0%            0             0            0            0              0          0          0%shares
    5 .Executive shares                    0        0%            0             0            0            0              0          0          0%
    II. Shares with                169,142,3                                                                                 169,142,3
                                               100%           0             0            0            0              0                  100%
    unconditional subscription           56                                                                                        56
                               99,720,45                                                                                 99,720,45
    1.Common shares in RMB                      58.96%            0             0            0            0              0                 58.96%
                                       3                                                                                         3
    2.Foreign shares in            69,421,90                                                                                 69,421,90
                                            41.04%            0             0            0            0              0                 41.04%
    domestic market                        3                                                                                         33.Foregin shares in
                                       0        0%            0             0            0            0              0          0          0%overseas market
    4.Other                                0        0%            0             0            0            0              0          0          0%
                               169,142,3                                                                                 169,142,3
    III. Total of capital shares                   100%                                                                                     100%
                                     56                                                                                        56Approval of changes in shares(if applicable)Ownership transfer of changed sharesInfluence on latest EPS, net asset per share and other financial index from changes in shares(If applicable)Other information necessary to be disclosed by the Company or should be disclosed according to requirement of securities regulators.
    2.Change in conditional shares□ Applicable√ Not applicable
                                                                          深圳市纺织(集团)股份有限公司 2012 年半年度报告全文
    (II)The information of issuing shares1. The information of issuing shares in the previous three years□ Applicable√ Not applicable2. Change of asset and liability structure caused by change of total capital shares and structure□ Applicable√ Not applicable3.Current employees shares□ Applicable√ Not applicable(III)Shareholders and the substantial controller of the Company1.Total of shareholders at the end of report termNumber of shareholding accounts at the end of report term was11,139.2. Particulars about the shareholding of the top ten shareholders
                                   Particulars about the shareholding of the top ten shareholders
                                 Nature of                         Quantity of     Conditional            Pledged or frozen
    Name of shareholder                          Proportion (%)
                                shareholder                        shares held       shares            Status          Quantity
                                 Public legal
    Union Holdings Co., Ltd.                             25.51%        43,141,032              0                                   0
                                person shares
         STYLE-SUCCESS
                       Foreign shares                   14.46%        24,466,029              0                                   0
               LIMITED
    Shenzhen       Textile           State-owned
                                                         5.64%         9,243,394              0                                   0
    (Group)Holdings Ltd                    sharesRich Crown Investment Co.,
                           Foreign shares                3.62%         6,114,556              0                                   0
                      Ltd.
    Union Development              Public legal
                                                         3.44%         5,821,089              0                                   0
    Group Co., Ltd.              person shares
    Liuzhou Jiali Real estate    Public legal
                                                         2.36%         3,999,000              0
      Development Co., ltd.     person shares
                 Zeng Ying               Other           1.11%         1,876,500              0
    Liuzhou       Ruiheng            Public legal
                                                            1%         1,699,800              0
    Mechatronics Co., Ltd.          person shares
           Shing Ying Chieh              Other           0.92%         1,550,362              0
                Zheng Lian               Other           0.54%           916,000              0NotesTop 10 holders of unconditional shares√Applicable□Not applicable
                                                      Amount of tradable                         Type and Quantity
                                                          shares with
            Full name of shareholder                 unrestricted conditions
                                                       held at the end of            Type                       Quantity
                                                         report period
                                                                          深圳市纺织(集团)股份有限公司 2012 年半年度报告全文
                          Union Holdings Co., Ltd.           43,141,032 A shares                                    43,141,032
                     STYLE-SUCCESS LIMITED                   24,466,029 B shares                                    24,466,029
    Shenzhen Textile (Group)Holdings Ltd                          9,243,394 A shares                                     9,243,394
                   Rich Crown Investment Co., Ltd.            6,114,556 B shares                                     6,114,556
                Union Development Group Co., Ltd.             5,821,089 A shares                                     5,821,089
    Liuzhou Jiali Real estate Development Co., ltd.            3,999,000 A shares                                     3,999,000
                                          Zeng Ying           1,876,500 B shares                                     1,876,500
    Liuzhou Ruiheng Mechatronics Co., Ltd.                        1,699,800 A shares                                     1,699,800
                                  Shing Ying Chieh            1,550,362 B shares                                     1,550,362
                                          Zheng Lian              916,000 B shares                                     916,000Notes to the related relationship between the shareholders or their concerted actionThe controlling shareholder of the above-mentioned largest shareholder Shenzhen Union Holdings Ltd.and fourth shareholder RichCrown Investment Co., Ltd.. Is Union Development Group Ltd.3. Introduction to the controlling shareholder and actual controller(1)The changing information of the controlling shareholder and actual controller□ Applicable√ Not applicable(2)The actual introduction to the controlling shareholder and actual controllerWhether exist new actual controller□ Yes √ No
    The Name of the actual controller                                 Union Development Group Co., Ltd.
    The classification of actual controller                           OtherExplanation :The Company does not have the dominant shareholders and actual controllers and it is not changed
    in the reporting period.(3)The block diagram of the title and control relationship between the Company and actualcontroller is as follows:The property right and controlling relationship between Union Development Group Ltd. and theCompany is as follows:
                                      Hangzhou         Jinjiang     Group
                                    Co., Ltd.
                                                          20.89%
                               Union Development Group Co.,
                                           Ltd.
                            31.32%                    99.99%
                                                                       深圳市纺织(集团)股份有限公司 2012 年半年度报告全文
                                                                                          3.44%
          Union Holdings Co., Ltd.                    Rich Crown Investment Co.,
                                                                Ltd.
                           25.51%                                  3.62%
                       Shenzhen Victor Onward Textile Industrial Co., Ltd.(4)Controlling over the Company by the substantial controller through trust or other asset management□ Applicable√ Not applicable
    4.   The other legal person shareholders holding more than 10% shares of the Company.√Applicable□Not applicable
                                              Legal
                                                         Date of
                                                                             Business scope or management   Register capital
                                        representative establishm
          Legal person shares
                                                                                        activities          (RMB0000)
                                                           ent
                                                                             Production     of     and
                                                                             dealing    in     various
                                                                             fabrics,        garments
                                                                             chemical fibers and
                                                                             textile       equipment,
                                                                             domestic      commerce,
                                                                             material supply and
                                                                             marketing (excluding
                                                                             monopolized
    Union Holdings Co., Ltd.          Dong Binggen
                                                           September 11,     commodities),                         112,388.77
                                                           1989              management             of
                                                                             self-owned properties,
                                                                             processing           with
                                                                             imported materials and
                                                                             designs,         internal
                                                                             introduction and foreign
                                                                             cooperation, assembling
                                                                             with imported spare
                                                                             parts and cooperation in
                                                                             compensation trade.
                                                           November 4,
    Style-Success Ltd                      Miss Amy Wang                         Investment
                                                           1989
             Explanation
                                                      深圳市纺织(集团)股份有限公司 2012 年半年度报告全文(IV)Information of convertible corporate bonds□ Applicable√ Not applicable
                            IV. Directors, Supervisors, Senior Executives
                                                                                                                                   深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
      (I)The changes of holding shares of the directors, supervisors and senior executives
                                                                                                 The           The                                                                Remuneratio
                                                                              Number of                                                  Of which:
                                                                                              increased     decreased      Number of                       Final                  n drawn from
                                                  Beginning     Ending date shares held at                                              the number
                                                                                              number of     number of shares held at                     numbers of Reason     for shareholder
    Name      Position        Sex       Age      date office    of office        the                                                   of restricted
                                                                                             shares on the shares on the the year-end                   stock options change        entities or
                                                     term          term       year-begin                                                stocks held
                                                                                             report period report period   (shares)                    held(Shares)            other related
                                                                              (shares)                                                (Shares)
                                                                                             (Shares)    (Shares)                                                             parties or notNo
    Total        --           --         --          --            --                                                                                                   --             --The directors, supervisors and senior managers did not implement equity incentives.□Applicable√Not applicable
                                                              深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(II)Representation informationRepresentation of shareholders√Applicable□Not applicable
                                                                                                                Whether receiving
                                                                                             Term terminated
    Name             Name of corporate shareholders           Position    Term start date                       remuneration or
                                                                                                   date
                                                                                                                     subsidy
                                                            Secretary of
                                                              Party
                                                              committee,
    Dong Binggen Union Development Group Co.,Ltd.                 Board        May 18, 2012      May 17, 2015      Yes
                                                              chairman
                                                              and
                                                              President
                                                            Board
    Dong Binggen Union Development Group Co.,Ltd.                              June 30, 2010     June 29, 2013     No
                                                            chairman
                                                            Vice
    Ding Yue        Union Development Group Co.,Ltd.                           May 18, 2012      May 17, 2015      Yes
                                                            President
                                                            Convener
                                                            of the
    Ding Yue             Union Holdings Co., Ltd.                              June 30,2010      June 29, 2013     No
                                                            Supervisory
                                                            Committee
                Union Development Group                     Vice
    Hu Yongfeng                                                                May 18, 2012      May 17, 2015      Yes
                Co.,Ltd.                                    President
                                                            Vice Board
    Hu Yongfeng     Union Holdings Co., Ltd.                                   June 30, 2010     June 29, 2013     No
                                                            chairman
                                                            Vice
                                                            Secretary of
                                                            Party
                                                            committee,
    Huang           Union Development Group
                                                            secretary      May 31, 2001                        Yes
    Xiaoping        Co.,Ltd.
                                                            of
                                                            discipline
                                                            committe
                                                            eHuang
                Union Holdings Co., Ltd.                    Director       June 30, 2010     June 29, 2013     NoXiaoping
                                                            Deputy
                Shenzhen Victor Onward Textile Industrial
    Feng Junbin                                                 general        May 4, 2010       May 3, 2013       Yes
                                 Co., Ltd.
                                                            manager
                Union Development Group                     Manager of     February 1,
    Zhang Mei                                                                                                      Yes
                Co.,Ltd.                                    Finance        2011
                                                                 深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
                                                              Dept.
    Zhang Mei         Union Holdings Co., Ltd.                    Director        June 30,2010    June 29, 2013    NoTheexplanation of
                  NoneRepresentationof shareholdersRepresentation in other unit√Applicable□Not applicable
                                                                                                                  Whether received
                                                                               Service term     Service term
    Name                                Other unit                Post occupied                                       remuneration from
                                                                                     from          ended
                                                                                                                   other unit or not
                                                              General
    Shu Yibo          Manqi Investment Development Co., Ltd.                      July 1, 2002                     Yes
                                                              Manager
                  STONEBRIDGE Enterprise Consultant           Board           January 1,
    Jin Ligang                                                                                                     Yes
                  (Beijing)Co., Ltd.                        chairman        2008
                  College of Humanities & Sciences of
    Shen Songqin                                                  President       June 1, 2009                     Yes
                  Hangzhou Normal UniversityExplanation onjob occupation Nonein other unit(III)Information of remuneration about Directors, Supervisors and Senior Executives
    The determination              Salary Review Committee of the Board of the company propose the appropria
    of remuneration of             te remuneration standards agreed by the Board by reviewing the directors pers
    Directors,                     onnel work responsibilities, scope of work and its importance.Independent dir
    Supervisors and                ectors remuneration needs to be approved by Shareholders' General MeetingSenior Executives.The rewardsdetermined basis of Determined by companys business performance before and our related jobs s
    directors,          alarysupervisors andsenior executivesThe actual salarypaymentinformation of
                               Payment on monthly basis.Directors,Supervisors andSenior(IV)Information about changing Directors, Supervisors and Senior Executives
    Name            Jobs taken             Changed          Date of change                       Cause of change
                                                             深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    Wang                                                  February 27,
              Independent director   Resignation                       Resigned for personal reason
    Tianguang                                             2012(V)The Employees
    Number of employees in position                                                                                   27
    Retired employees on the Companys expense                                                                         0
                                                   Composition of professions
                    Categories of professions                                     Number of persons
    Production                                                                                                        0
    Sales & Marketing                                                                                                 0
    Technicians                                                                                                       0
    Finance & Accounting                                                                                              3
    Executive                                                                                                         5
                                                     Education background
                     Categories of education                                      Number of personsParticulars about the employeesThe Companys ceased production in 2007,the remaining employees are mainly logistical personnel
                                      V .Report of the Board of Directors
       (I) Management discussion and analysis
       In the report year, the printing and dyeing mill of the Company in Shenzhen continuedproduction suspense while the parent company and five subsidiaries continued the suspensionof printing and dyeing business due to the production suspense of the printing and dyeingmill. The parent company, Nanhua Company and Hong Kong Company maintained dailyoperation through property lease. The other three subsidiaries had suspended business. TheCompany planned to invest in the joint venture project of Nanjing East Asia Textile Printingand Dyeing Co., Ltd. with partial machinery and equipment. Due to change of foundation ofjoint venture and prospect of the industry, the capital increase was not completed. In thereport year, the income from house rent was the main source of net inflow of cash and thesource of income from main operation. On the whole, the income of the Company exceededits expenditure so that its operation was extended. Due to no income from substantial keybusiness matched with asset scale and no income from investing in enterprises, big operatingloss was unavoidable in the report year.
                                                                   深圳中冠纺织印染股份有限公司 2012 年半年度报告全文Description for above 20%of the company's actual business performance than the profitforecast disclosed publicly during the reporting period□ Yes √ NoMajor subsidiaries of the company, shares of the company's operations and performance analysisAll the risk factors that maybe have adverse influence on the achievement of future development strategy and businessobjective of the company1.The Status of key business in terms of industry of business.(1)The Status of key business in terms of industry and product of business.
                                                                                                               Unit :RMB
                                                                              Change of
                                                  Increase/decr Increase/decr Gross profitOn industry Income from Cost of key Gross profit ease of key ease of key rate over the
    or production key business business  rate(%)      business business cost same period
                                                  turnover(%) (%)       of last year
                                                                                (%)In terms of business lineFabricsbleaching,Printing &dyeing
    Lease                              501                 219             56.29%              -9.24%          -6.01%           -1.5%
    In terms   of productFabricsbleaching,
                                      0                   0Printing &dyeing
    Lease                              501                 219             56.29%              -9.24%          -6.01%           -1.5%The Status of key business in terms of industry and product of business.Description for the reasons of greater rise or fall range in gross profit rate year-over-year:
    (2)Main     operation in terms of areas are as follows:
                                                                                                                Unit:RMB
                                                                                                 Increase/decrease of income
                   Area                            Income from key business
                                                                                                           (%)
                                                               深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    Shenzhen                                                                            416                                           -9.76%
    Hong Kong                                                                              85                                         -6.59%The Status of main operation in terms of areasDescription for the composition of main business(3)Reasons for the material change of key business and its structure□Applicable√Not applicable
           for the material change of the profitability ( gross profit rate) of the key business(4)Reasonscompared with the previous year□Applicable√Not applicable
    (5)Analysis     of the reasons for the material change of profit structure compared with theprevious year√Applicable □Not applicable
    The operating profit in the report period (RMB-1.23 million) Increased by RMB7.03
    million over the same period of the previous year (RMB -826 million). The profit structure
    is as follows:Unit:RMB’0000
                                Amount of Proportion Amount of same Proportion
                Items             current   to operating     period of     to operating                 Main reason for change
                                  period     profit %      previous year    profit %
       Profit from       main
                                   281        -228.46           319          -38.62% Rental income has decreased .
       operation
       Operating taxes and
                                   15        -12.20                                       weight classification
       extras
       Administrant
                                   435      -353.66            431         -52.18%
       expenses
       Financial expenses           -4       -3.25%            36           -4.36%        Influence of Exchange ratio
       Income          from
                                   42       -34.15%           -673         81.48%         Influence of market price fluctuation
       change in fair value
                                                                                          With the impact of the Operating loss of Zhejiang
       Investment income          -673      81.48%             678         126.49%
                                                                                          Union Hangzhou Bay Ventures Company2.Internal controlling system related to accounting of fair value√Applicable □Not applicable
                                                                         深圳中冠纺织印染股份有限公司 2012 年半年度报告全文For the prevention of investment risk, the improvement and perfection of the high-riskinvestment management mechanism of the company and the guarantee of the companysassets safety, the company has approved the “Special Management System on ShenzhenVictor Onward Textile Industrial Co., Ltd. Engaged in High-Risk Investment”.
    Items related to measurement of fair value
                                                                                                                      Unit:RMB
                                 Amount at the        Gains and losses        Accumulative         Provision for     Amount at the end of
                               beginning of period   from change of fair   change of fair value impairment made in         periodItems
                                                      value in current       accounted for as      current period
                                                           period           rights and interestsFinancial assets
    Of       which : 1.
    Financial             assetscalculated accordingto fair value whose
                                            68,900               -13,510                                                            55,390change is accounted
    for      as    profits    or
    losses        for    currentperiod
    Including:           Derivedfinancial asset2. Trading financial
                                          703,055                                        -77,031                                 626,024assetsSubtotal of financial
                                          771,955                -13,510                 -77,031                                 681,414assetsFinancial liabilitiesProperty investmentProduction physicalassetsOtherTotalIs there any major difference between the evaluation results when evaluation techniques were adopted on similar items in
    two years please state the details if there is.
    □ Yes        □ No3.Holding of financial assets and liabilities in foreign currency√Applicable □Not applicable
                                                                                                                      Unit:RMB
              Item               Amount at the        Gains and losses        Accumulative         Provision for     Amount at the end of
                                                                     深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
                           beginning of period   from change of fair   change of fair value impairment made in   period
                                                  value in current       accounted for as      current period
                                                       period           rights and interestsFinancial assets
    Of       which : 1.
    Financial         assetscalculated accordingto fair value whosechange is accountedfor as profits orlosses for currentperiodIncluding: Derivedfinancial asset2.Loan and accountreceivable3. Trading
                                       703,055                                       -77,031                          626,024financial assets4.Expiredinvestment inpossessSubtotal of financial
                                       703,055                                       -77,031                          626,024assetsFinancial liabilities
         (II)Investment of Company
         1.The Company raised           funds in the report period.□Applicable√Not applicable2.Commitments on projects of raised funds□Applicable√Not applicable
                                                                    深圳中冠纺织印染股份有限公司 2012 年半年度报告全文3.Changes of projects of raised funds□ Applicable√ Not applicable4.Investment on major projects of non-raised funds□ Applicable√ Not applicable(III)Revising of business plan of the second half of year by the Board□ Applicable√ Not applicable(IV)Prediction of Business performance for Jan-Sept 2012.Estimation of accumulative net profit from the beginning of the year to the end of next report period to beloss probably or the warning of its material change compared with the corresponding period of the lastyear and explanation of reason.√Applicable □Not applicableForenotice of earnings :LossesType of data filled for the prediction□ actual figures √ interval figures
                                                                    Same period of
                                    Year beginning to end of next
                                                                     the previous                    Increase or decrease%
                                            report period
                                                                         yearEstimated amount of
                                                                                        □ -- □Increase□
    accumulative net                           -700 --           -500           -1,226                             -59.22% --      -42.9%
                                                                                        Decreaseprofit(RMB0000)
    Basic earnings per shares                                                               □ -- □Increase □
                                          -0.04 --          -0.03               -0.07                          -57.14% --     -42.86%
    (Yuan/share)                                                                            Decrease
                                   Due to loss of real estate projects of Zhejiang Union Hangzhou Bay Ventures Co., Lt
                                   d. accounted for on equity basis, the accumulative net profit for the period from JanuaNotes to forenotice of
                                   ry 2012 to September 2012 is estimated to be loss and about RMB-7 million to RMB-earnings
                                   5 million.(V)The managements remarks on the “non-standard opinions” by the auditors for thereport period√Applicable □Not applicableNotes to the unqualified auditor's report with paragraph of emphasized matters issued by
                                                                  深圳中冠纺织印染股份有限公司 2012 年半年度报告全文Shine Wing Certified Public Accountants for the Company's financial report for 2011(I) Basic information about the matters involved in non-standard unqualified audit opinions:
    Shine Wing Certified Public Accountants issued unqualified auditor's report with paragraph of emphasized matters forthe Company's financial statements for 2011 Basic information of emphasized matters: Since March 2007, Shenzhen VictorOnward Textile Industrial Co., Ltd. stopped production and dismissed most of workers. And most subsidiaries of thecompany had stopped production and it maintained daily operation by house leasing. Shenzhen Victor Onward TextileIndustrial Co., Ltd. had disclosed its improvement measures in Note 13 of Financial Statement, but its sustainable operationability is still uncertain. This paragraph does not affect audit opinions that have been given.
      (II) Basic opinions of certified public accountants on such matter:
    Shine Wing Certified Public Accountants accepted entrustment, completed the audit of the financial statements of theCompany for 2011 and issued unqualified auditor's report with paragraph of emphasized matters for the Company's financialstatements for 2011. In accordance with No. 14 Rule for Preparation and Report of Information Disclosure by CompaniesPublicly Issuing Securities - Non-standard Unqualified Audit Opinions and Treatment of Matters Involved Therein, relevantnotes are as follows:As noticed by Shine Wing Certified Public Accountants during audit, Since March 2007,Shenzhen Victor Onward Textile Industrial Co., Ltd. stopped production and dismissed mostof workers. The company currently only had house leasing business.Except that Shenzhen East Asia Victor Onward Textile Printing and Dyeing Co., Ltd. is stilloperating normally, other 5 subsidiaries controlled by the Company have stopped operationor are maintaining daily operation by house property lease. It plans to invest in Nanjing EastAsia Textile Printing and Dyeing Co., Ltd. with part of machinery and equipment in 2007,Due to the reason on the side of the other party of joint venture and change of industryprospect. we believe that the sustainable operation ability of Shenzhen Victor OnwardTextile Industrial Co., Ltd. is still uncertain, so I emphasized the situation in the audit reportsand issued unqualified auditor's report with paragraph of emphasized matters. The mattersinvolved in highlighted statement did not apparently violate Accounting Standards forBusiness Enterprises and regulations on relevant information disclosure standardization.
    This special statement is issued by us according to relevant regulations of CSRC and shall not be used for other purpose.We and the C.P.A. who performed this service shall not bear any liability for the consequences caused by its improper use.(VI)Themanagements remarks on any changes in and results of issues related to the “nonopinions” by the auditors for the previous year.√Applicable □Not applicableThe opinions of the board of directors, supervisory committee and management of theCompany on this matter:
                                                          深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
      The board of directors, Supervisory Committee and managers believed that the printingand dyeing plant of the company had stopped operation or maintained daily operation byhouse leasing. .It plans to invest in Nanjing East Asia Textile Printing and Dyeing Co., Ltd.with part of machinery and equipment, Due to the reason on the side of the other party of joint venture andchange of industry prospect.(I) Extent of influence of this matter on the Company:
    This event greatly impacted the production & operation activities and sustainabledevelopment of company, it made company had the situation of implementing other specialtreatment which was stipulated in Shenzhen Stock Exchange Listing Rules , the stock of ourcompany had been implemented for other special treatment.(II) The possibility of eliminating this matter and its influence:Though the transfer of printing and dyeing business has been somewhat delayed,The board ofdirectors of company is positively studying the future development of company to enhancecompany's sustainable operating ability.(III) The concrete measures of eliminating this matter and its influence
      The Company is communicating with joint venture partner and trying to minimize thelosses and settle this joint venture project issue properly.(VII)Results of discussion by the Board on the causation and impact of change inaccounting policies and estimations or correction of material accounting errors..□ Applicable√ Not applicable(VIII)Establishment and Implementation of Cash Dividend Policy of the CompanyIn order to perfect and improve the scientific, sustained and stable dividend decision andmonitor mechanism of the company, and protect the legitimate rights and interests ofinvestors, the 4th Meeting of the Sixth Board of Directors of the Company held on August 14,2012 has formulated the amendment scheme on profit distribution policy of the Articles ofAssociation, and clarified the ways of profits distribution, the specific conditions andproportion of dividends distribution, the purpose of undistributed profits and other specificpolicies, then should submit to 2012 First provisional Shareholders General Meeting held inAugust 2012 for approval according to the direction spirit of "Notice on FurtherImplementation of the Issues related to the Cash Dividends of Listed Companies" of The
                                                                    深圳中冠纺织印染股份有限公司 2012 年半年度报告全文China Securities Regulatory Commission (CSRC) and “Notice on Earnest Execution of theRequirements Related to the Notice on Further Implementation of the Issues related to theCash Dividends of Listed Companies” of Documents [2012]43 issued by ShenzhenSecurities Regulatory Bureau. 2. The Board of Directors of the company study out thepreplan of profits distribution every year which is in line with the provisions of the Articles ofAssociation, and the independent directors voice their opinions, then the preplan is conductedthe disclosure by the designated media, which should be implemented after examined andpassed by the shareholders general meeting of the company. After the new amendments onthe profit policy within the “Articles of Association”, the Board of Directors of the companyshall make a communication with the minority shareholders and fully hear their commentsand suggestions through telephone, fax, letter and e-mail in the process of thedecision-making and the demonstration on the profit distribution scheme. The Company net
    profit is RMB-17,361,593,the               total year-end undistributed profit is - RMB      -116,026,610.   The Company is
    neither to distribute profit nor to capitalize capital surplus for the current year.   There not exists the situation thatthe accumulatively distributed profits at the end of 2011 is not conducted the cash dividend.The Profit distribution policy of the company and the next three-year shareholder return planand amendment of the articles of the company will be all published in Securities Times andHong Kong Commercial Daily and www.cninfo.com.cn. on August 16,2012(IX)Profit distribution or capitalizing of common reserves□ Applicable√ Not applicable(X)Situation Of positive retained profit at end of 2011 but no cash dividend was proposed□ Applicable√ Not applicable(XI)Establishment and Implementation of the Registration and Management System on
    Learners of Insider InformationFor the standardization of the Registration and Management System on Learners of InsiderInformation of Listed Company, the company has held the special meeting of the Sixth Boardof Directors and made full revision on “Management System on Learners of InsideInformation” on June 28, 2012 in accordance with the requirements of the “Provisions onListed Company Formulating Management System on Learners of Insider Information” andcombined with the actual situation of the company. Thus, the company has further clarifiedthe use scope, the data filing procedures and the responsibility claim of the non-publicinformation.
                                                               深圳中冠纺织印染股份有限公司 2012 年半年度报告全文In the Report period, According to the requirements of the “Registration and ManagementSystem on Learners of Insider Information”, the company has well performed themanagement and the safe delivery of all the information, and completely put into andrecorded the report, the transmission, the preparation, the review and the disclosure of all thelearner lists of insider information before the public disclosure of the insider information.In the Report period, The company has not found the situation that the relevant personnel isengaged in the insider transaction by using the insider information and suggest others toconduct the transaction with the insider information, there is no the situation that the insiderinformation is disclosed, and not exists the situation that the company shall be taken acrackdown and ordered for rectification by the regulatory department because of theimplementation of the Registration System on Learners of Insider Information or thesuspicion of insider transaction.Whether implemented self-examination and accountability on insiders who dealing with stock of the Company as well asderivative products□ Yes √ NoWhether custody measurement and administration punishment on listed company and related staff from regulatoryauthorities in aspect of implementation of registration management mechanism of insiders or inside trading involved or not.□ Yes √ No
    (XII)Other    Disclosures(XIII)Liabilities, credit changes and cash arrangement for debt paying in later year(onlyapplies to listed company with corporate convertible bonds offered)□ Applicable√ Not applicable
                                              VII. Important Events1.Governance of the CompanyIn the report period, The company has strictly abided by the “Corporate Law”,“Securities Law”, “Governance Rules of Listed Companies”, “Articles of Association” andthe provisions and requirements of The China Securities Regulatory Commission (CSRC)and The Shenzhen Stock Exchange (SZSE) to continuously improve the corporategovernance structure, establish the modern enterprise system, standardize the companyoperations and seriously and well perform all the works of corporate governance. At thebeginning of 2011, the company has set up the work plan and program on the implementationof internal control norms in order to further strengthen the construction work of thecompanys internal control norms system according to the relevant specifications of“Foundational Norms on Internal Control of Enterprise” and “Supporting Instructions toInternal Control of Enterprise”. Currently, the company is carrying out the relevant specificworks as per all the stage of work plans of the internal control construction.
                                                深圳中冠纺织印染股份有限公司 2012 年半年度报告全文In the report period, The company has formulated the “Compilation of Internal ControlDocument on Shenzhen victor Onward Textile Industrial Co., Ltd.” after the examination andapproval of the special meeting of the 4th Meeting of the Sixth Board of Directors andSupervisory Board has adopted and passed the “Self-Evaluation Report of Internal Control onShenzhen Textile Holdings Co., Ltd.” on August 14, 2012. Also, the company has strictlyimplemented the relevant system of internal control, promoted the standardized operationsand healthy development and protected the legitimate rights and interests of investors. So,there is no difference between the overall corporate governance situations and therequirements of The China Securities Regulatory Commission (CSRC). With thedevelopment of the company, the status of standard operation and the level of internal controlof the company shall be continuously improved. For the specific details of the“Self-Evaluation Report of Internal Control on Shenzhen Textile Holdings Co., Ltd.”, pleaserefer to the contents published on:www.cninfo.com) on August 16, 2012.(II)Dividend plans, reserve capitalizing plans, or share issuing plans proposed in previousperiod and implemented in the current period.□ Applicable√ Not applicable
                                                                                                                                              深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(III)Material lawsuits
    √ Applicable          □Not    applicable
                                                                                                                                                                        Date of     Serial number of
                                        Joint liability                      Profile of the   Amount claimant Progress of the         Results and     Progress of
    The claimer       The defendant                          Type of claim                                                                                             information         the
                                            party                                claim          RMB0000            lawsuit             influence      execution
                                                                                                                                                                       disclosure    announcement
                   Nanjing East
                   Asia Textile
                   Printing &
                   dyeing Co.,
    Shenzhen           Ltd.,                                                    Requests for
    victor             Nanjing East                                             termination
                                                                            of the contra                     The case
    Onward             Asia
                                                                            ct, agreemen
                                                                                              4,792           hasnt yet                                             June 16, 2012   2012-0614
    Textile            Investment
                                                                            t                                 been tried
    Industrial         Developmen
    Co., Ltd           t Group Co.,
                   Ltd.,
                   Hongkong
                   Yaojunxing
                   Co., Ltd.Material lawsuit or arbitration issues occurred after the last annual report were amounted to RMB 0.Material lawsuit or arbitration issues presented in the last annual report but was not settled were amounted to RMB 33.5877million.Provisions provided for the liabilities formed by the lawsuit was RMB0.Description of the material lawsuit or arbitration issues
                                                                                                   深圳中冠纺织印染股份有限公司 2012 年半年度报告全文On June 4, 2012, The company has instituted court action against below three companies at Jiangsu Province Higher People's Court, and asked toterminate the contracts and agreements signed with Nanjing East Asia Textile Printing & Dyeing Co., Ltd., Nanjing East Asia Investment &Development Group Co., Ltd. and Hong Kong Yaojunxing Co., Ltd., who shall pay RMB47,922,902.92 to the company for the pecuniary loss ofimplicative compensation and undertake the costs of litigation. The company has received the Su-Shang-Wai-Chu-Zi No.0002 (2012) of “Notice onIndictment Acceptance and Collegial Panel Announcement” issued by Jiangsu Province Higher People's Court on June 14, 2012.The case hasnt yet been tried, so the impact on the company temporarily cant be judged. The company will fulfill the obligation of informationdisclosure in time according to the progress of legal action.The announcement of the resolutions of this meeting was published on Securities Times , Hong Kong Commercial Daily and www.cninfo.com.cn onJune 16, 2012.深圳中冠纺织印染股份有限公司 2012 年半年度报告全文深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
                                                                                深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(IV)Bankruptcy or capital reorganizing□ Applicable√ Not applicable(V)Holding other PLC’S shares or participating of financial entities1. Securities investment
    √ Applicable             □Not     applicable
                                                                                 Number o
                                                                     Initial                                                           Profits or
                                                                                 f shares at        Book value at
                                                      Stock        investment                                        Proportion       losses in the
    Line    Stock Variety         Stock code                                      end of pe          period-end
                                                   abbreviation     amount                                             (%)             report
                                                                                 riod(share          (RMB)
                                                                   (RMB)                                                            period(RMB)
                                                                                     s)
    1          Stock              601558             Winovel Wind           31,000              4,000         28,440             51.35%           -2,560
    2          Stock              002563             Semir Garment          37,900              1,000         26,950             48.65%          -10,950
    Other securities investment held at the end of the period                             --Gain and loss from investment in securities already sold
                                                                       --              --                --                  --               11,022
                      in the report period
                              Total                                     68,900         --                 55,390 100%                         -2,488Disclosure Date of Announcement onSecurities Investment Approved by theBoard of DirectorsDisclosure Date of Announcement onSecurities Investment Approved by theShareholders MeetingStatement on securities investment2. Holding of other PLC’S shares
    √ Applicable             □Not     applicable
                                                                                                     Changes of
                                       Initial                                     Profits or                        Subject of
                      Stock                        Proportion of Book value at                        owners                          Resource of
    Stock code                      investment                                    losses in the                      accounting
                   abbreviation                    shareholding    period-end                       equity in the                           share
                                      amount                                     report period                       calculation
                                                                                                    report period
                                                                                                                    Financial
                 Union
                                                                                                                    assets
    467              Energy                  703,055              0%       626,024                  0        -77,031                      Buy
                                                                                                                    available for
                 Group
                                                                                                                    sale
                                                                       深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    Total                                 703,055      --            626,024          0      -77,031     --              --Statement on holding of other PLCs shares.3.Shareholding in non-listed financial entities□ Applicable√ Not applicableStatement on shareholding in non-listed financial entities4.Trading of other PLC’S shares
    √ Applicable          □Not   applicable
                      Number of shar Buy/sell shares
                      es at beginning in the report pe Number of shar Used the amou
                                                                                                              Generated
         Name
                      of period       riod             es at end of peri nt of Capital                    investment returns
                                                          od(shares)        (RMB)                          (RMB)
                                                  (shares)
    Boya Overview                              0                   500                0            375,000                    8,755
    Beijing WKW                                0                   500                0            240,000                     567The total investment income made during the reporting period of the new shares is RMB 9,322.Statement on trading of other PLCs shares.(VI)Asset trade
    1.   Acquisition or swap in of assets□ Applicable√ Not applicableStatement on acquisition of assets.
    2.   Disposal or swap out of assets□ Applicable√ Not applicableStatement on disposal of assets.
                                                         深圳中冠纺织印染股份有限公司 2012 年半年度报告全文3.Asset exchange□ Applicable√ Not applicableStatement on asset exchange.4.Merger of entities□ Applicable√ Not applicable5. The progress of the event after the publishing of asset reorganization report or announcement ofacquisition or disposal of assets and its influence on the operating results and financial status for thereport period.□ Applicable√ Not applicable( VII ) Statement on share increasing proposal raised by the holding shareholder or itsaction-in-concert parties in the report period□ Applicable√ Not applicable(VIII)Implementation and influences of share equity incentive program□ Applicable√ Not applicable
    (IX)Important     Related transactions
                                                                                                           深圳中冠纺织印染股份有限公司 2012 年半年度报告全文1.Related transactions related to daily operation□ Applicable√ Not applicable2.Related transactions related to asset purchasing or disposal□ Applicable√ Not applicable3.Material related transactions related to collaborated external investment□ Applicable√ Not applicable4. Credits/Debts with Related Parties□ Applicable√ Not applicableCapital appropriation and progress of clearing in report period□ Applicable√ Not applicableThe penalty plan proposed by board if the clearing of non-operational capital appropriation is not completed till the end of report period.□ Applicable√ Not applicable
                                                                深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    5.   Other Important Related transactions
                      Related party                     Amount of period-end Amount of period-beginAccount receivable
    Shenye Union(Hong Kong)                                              299,354                      299,354Other receivable
    Union Group                                                      23,359,193                   23,159,803
    Union Property                                                        666,223                    700,734
    (X)Important       contracts and their performance1.Trusteeship , contract, or leasing issues which contributes 10% or over of total profit of the period(1)Trusteeship□ Applicable√ Not applicable(2)Contracts□ Applicable√ Not applicable(3)Leasing□ Applicable√ Not applicable2.Guarantees□ Applicable√ Not applicable3.Entrusted capital management□ Applicable√ Not applicable4.Performing of material contracts5.Other material contracts√Applicable □ Not applicable
       The investment contract and the related financial expenses signed havent been executed orfully performed.As of June 30, 2012, Group has signed a contract but there are still outstandingmajor agreement total foreign investment RMB 30 million .Specific conditions are as follows:
    Name                             Investment   Payable   Non-payable Investment               Notes
                                                              深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
                             amount       amount of amount of           Period
                                          investmen investment
                                               t
    Investment             in                                                         Not because of the
    machinery            and                                                          other     production
    equipment in Nanjing         30 million             -     30 million Uncertain sites can not be
    East Asia Textiles Co.,                                                           completed
    ltd.                                                                              relocation
    2.The Signed or is ready to carry out the contract of large contractsAs of December 31, 2010,The Group still has signed the agreement but did not pay large amountsof letting contracts total RMB 1.71 million. Specific conditions are as follows:2.The Signed or is ready to carry out the contract of large contractsAs of June 30, 2012,The Group still has signed the agreement but did not pay large amounts ofletting contracts total RMB 1.71 million. Specific conditions are as follows:
    Name                 Investment        Payable Non-payabl         Investment              Notes
                       amount         amount of e amount of         Period
                                     investment investment
    The    allocation        1,710,000        855,000       855,000   Uncertain      Not because of the
                                                                                 other    production
    of     production
                                                                                 sites can not beequipment as a
                                                                                 completed relocationwhole works
    2.In addition to these commitments ,as of June 30, 2012,The Group has no other significantcommitments.(XI)Statement on issuing of company bonds□ Applicable√ Not applicable(XII)Fulfilling of commitments1.Commitment made by the PLC, Its directors, supervisors, executives, and shareholders with 5% over shares ofthe Company , and its substantial dominator in the report term or carried over to the report term :□ Applicable√ Not applicable
                                                                          深圳中冠纺织印染股份有限公司 2012 年半年度报告全文2..Statement on the situation of predicted profit on assets or projects, and actual results of the same .□ Applicable√ Not applicable(XIII)Other misc. income subjects
                                                                                                                        Unit:RMB
                                 Items                                       Occurred current term       Occurred in previous term
    1.Gains(losses)from sellable financial assets                                                -80,951                     -215,997Less:Income tax influence of sellable financial assetsNet amount written into other gains and transferred into gain/loss inprevious terms
    Subtotal                                                                                      -80,951                     -215,9972.Shares in the other misc. income subjects in the investee on equitybasisLess:income tax influence of shares in other gains of investees onequity basisNet amount written into other gains and transferred into gain/loss inprevious terms
    Subtotal                                                                                             0                           03.Amount of gains(or losses) from cash flow hedge instrumentLess: Income tax influence of cash flow hedge instrumentsNet amount written into other gains and transferred into gain/loss inprevious termsAdjusted amount transferred to initial amount of the target project
    Subtotal                                                                                             0                           0
    4.Difference from translating of foreign currency financial statements                       -38,246                   -3,172,304Less: Net amount of disposing overseas Business and transferred tocurrent gain/loss
    Subtotal                                                                                      -38,246                   -3,172,3045.OtherLess:Income tax influence by other accounted into other misc. incomesNet amount accounted into other misc. income and transferred intocurrent gain/loss in previous terms
    Subtotal                                                                                             0                           0
    Total                                                                                        -119,197                   -3,388,301
                                                                            深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(XIV)The registration form of acceptance of investigation, communication and interview in the report periodfor future reference
                                                                                                          Content of discussion and
         Date                     Place                  Mode                 Type             Visitor
                                                                                                              materials provided
                                                                                                          Inquiry about the
                        Director &
    May 3, 2012                                       Telephone           Individual           Investor       condition of the
                        Secretary office
                                                                                                          Company's key business
                                                                                                          Inquiry about the
                        Director &
    May 16, 2012                                      Telephone           Individual           Investor       possibility of the
                        Secretary office
                                                                                                          Company's delisting
    (XV)Engagement             and removal of certified public accountantsIf the Semi-annual Report is audited□ Yes √ No(XVI)Punishment on the Company and/or the directors, supervisors, executives, shareholders,substantial controller, and purchasers, and correcting of misbehaviors□ Applicable√ Not applicable(XVII)Other Material events□ Applicable√ Not applicable(XVIII)Material change in profit ability, asset, and credit situation of the guarantor of theconvertible bonds(Only applies to listed company with corporate convertible bonds offered)□ Applicable√ Not applicable(XIX)Index for information disclosed
                                             Name and layout of                                 Website for publishing and searching
               Matter                                                     Date of publishing
                                          newspapers for publishing                                             path
    Announcement on abnormal            Securities Times and
    fluctuation of trading price of     Hong                      Kong February 16, 2012            (http://www.cninfo.com.cn)stocks
                                    Commercial Daily.
    The announcement on the             Securities Times and
    resignation of Mr. Wang             Hong Kong                         February 29, 2012         (http://www.cninfo.com.cn)
    Tianguang, an independent           Commercial Daily.
                                                                         深圳中冠纺织印染股份有限公司 2012 年半年度报告全文director of the Company
    Announcement on abnormal           Securities Times and
    fluctuation of trading price of    Hong Kong                      February 29, 2012       (http://www.cninfo.com.cn)
    stocks                             Commercial Daily.
                                   Securities Times and2011 annual report of the
                                   Hong Kong                      April 24, 2012          (http://www.cninfo.com.cn)Company and its summary
                                   Commercial Daily.
    Announcement of the                Securities Times and
    resolutions of 3rd Meeting of      Hong Kong                      April 24, 2012          (http://www.cninfo.com.cn)
    the Fifth Board of Directors       Commercial Daily.
    Notice of Holding 2011             Securities Times and
    annual shareholders                Hong Kong                      April 24, 2012          (http://www.cninfo.com.cn)
    General Meeting                    Commercial Daily.
    Announcement of the 3rd            Securities Times and
    Meeting of Fifth Supervisor        Hong Kong                      April 24, 2012          (http://www.cninfo.com.cn)
    Committee                          Commercial Daily.
                                   Securities Times and
    The first Quarterly Report 2012    Hong Kong                      April 24, 2012          (http://www.cninfo.com.cn)
                                   Commercial Daily.
    Announcement on abnormal           Securities Times and
    fluctuation of trading price of    Hong Kong                      May 4, 2012             (http://www.cninfo.com.cn)
    stocks                             Commercial Daily.
    Announcement of Resolutions        Securities Times and
    of 2011 annual shareholders        Hong Kong                      May 16, 2012            (http://www.cninfo.com.cn)
    General Meeting                    Commercial Daily.
                                   Securities Times and
    Announcement on lawsuits.          Hong Kong                      June 16,2012            (http://www.cninfo.com.cn)
                                   Commercial Daily.
        XII. Financial Report
    1       Auditor's reportIf the interim report is audited□ Yes v No2.Financial statementsConsolidated or not:
    √Yes    □ NoAll figures in the financial statements are in RMB yuan except fro otherwise stated.All figures in the Notes to the financial statements are in RMB yuan.
                                                       深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    1.   Consolidated Balance sheetPrepared by:Shenzhen Victor Onward Textile Industrial Co., Ltd.
                                                                                              Unit:RMB
                   Items          Notes     Year-end balance              Year-beginning balanceCurrent asset:
    Monetary fund                                          53,666,428                        53,399,316
    Settlement provision
    Outgoing call loan
    Trading financial assets                                       55,390                            68,900Bill receivable
    Account receivable                                            744,712                           744,712
    Prepayments                                                19,693                            27,548Insurance receivableReinsurance receivableProvisions of Reinsurancecontracts receivable
    Interest receivable                                            0                             38,378
    Dividend receivable
    Other account receivable                                      114,831                           457,264Repurchasing of financialassets
    Inventories                                                   162,457                           162,457
    Non-current asset due in 1
                                                                    0                                 0year
    Other current asset                                            0                                 0
    Total of current assets                                     54,763,511                        54,898,575Non-current assets:
    Loans and payment onothers behalf disbursed
    Disposable financial asset                                626,024                           703,055
    Expired investment in
                                                                    0                                 0possess
    Long-term receivable                                               0                                 0
    Long term share equity                                     63,758,611                        63,192,614
                                    深圳中冠纺织印染股份有限公司 2012 年半年度报告全文investment
    Property investment                     32,850,966                        34,373,451
    Fixed assets                           12,047,900                        12,070,406
    Construction in progress                       0                                 0
    Engineering material                             0                                 0
    Fixed asset disposal                           0                                 0
    Production physical assets                     0                                 0
    Gas & petrol                                    0                                 0
    Intangible assets                        1,880,917                         1,901,069
    R & D petrol                                    0                                 0
    Goodwill                                 5,099,624                         5,099,624
    Long-germ expenses to be
                                                 0                                 0amortized
    Differed income tax asset                        0                                 0
    Other non-current asset                         0                                 0
    Total of non-current assets             116,264,042                       117,340,219
    Total of assets                         171,027,553                       172,238,794Current liabilities
    Short-term loans                               0                                 0Loan from Central BankDeposit received and hold forothersCall loan received
    Trade off financial liabilities                0                                 0
    Bill payable                                   0                                 0
    Account payable                         3,246,981                         3,239,221
    Advance payment                          2,775,748                         2,775,476
    Selling of repurchasedfinancial assetsFees and commissionsreceivable
    Employees wage payable                     620,078                           590,220
    Tax payable                              2,872,905                         2,700,348
    Interest payable                                0                                 0
    Dividend payable                         1,215,946                         1,215,946
                                   深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    Other account payable                 31,391,552                        31,167,220Reinsurance fee payableInsurance contract provisionEntrusted trading of securitiesEntrusted selling of securitiesNon-current liability due in 1
                                                0                                  0year
    Other current liability                  4,250,323                         1,584,784
    Total of current liability              46,373,533                        43,273,215Non-current liabilities:
    Long-term loan                         1,102,961                          1,160,011
    Bond payable                                   0                                  0
    Long-term payable                      8,534,177                         8,486,859
    Special payable                                0                                  0
    Expected liabilities                           0                                  0
    Differed income tax liability              812,841                           808,335
    Other non-current liabilities             836,792                           836,792
    Differed income                         11,286,771                        11,291,997
    Total of liability                      57,660,304                        54,565,212Owners equity
    Share capital                        169,142,356                       169,142,356
    Capital reserves                       39,661,522                        39,742,473
    Less:Shares in stockSpecial reserves
    Surplus reserves                      26,704,791                        26,704,791Common risk provision
    Undistributed profit                -120,213,746                       -116,026,610
    Different of foreign currency
                                          -554,160                          -515,914translationTotal of owners equity belong to
                                       114,740,763                       119,047,096the parent company
    Minority shareholders equity            -1,373,514                         -1,373,514
    Total of owners equity                 113,367,249                       117,673,582Total of liabilities and owners
                                       171,027,553                       172,238,794equity
                                                            深圳中冠纺织印染股份有限公司 2012 年半年度报告全文Legal representative :Hu YongfengPerson-in-charge of the accounting work:Zhang JinliangPerson-in -charge of the accounting organ:Ren Changzheng
    2.   Balance sheet of the Parent Company
                                                                                                    Unit:RMB
                   Items          Notes            Year-end balance               Year-beginning balanceCurrent asset:
          Monetary fund                                           19,654,909                        21,483,163
    Trading financial assets                                                55,390                         68,900Bill receivableAccount receivable
    Prepayments
    Interest receivable
    Dividend receivable
    Other account receivable                                         72,767,761                        72,999,033
    Inventories                                                           162,457                        162,457
    Non-current asset due in 1year
    Other current asset
    Total of current assets                                           92,640,517                        94,713,553Non-current assets:
    Disposable financial asset
    Expired investment inpossessLong-term receivableLong term share equity
                                                                  36,788,953                        36,788,953investment
    Property investment                                                  5,229,335                      5,397,921
    Fixed assets                                                     9,145,661                      9,170,487
    Construction in progressEngineering material
    Fixed asset disposal
                                    深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    Production physical assetsGas & petrol
    Intangible assets                        1,880,917                         1,901,069R & D petrolGoodwill
    Long-germ expenses to beamortizedDiffered income tax assetOther non-current asset
    Total of non-current assets              53,044,866                        53,258,430
    Total of assets                         145,685,383                       147,971,983Current liabilities
    Short-term loans
    Trade off financial liabilities
    Bill payable
    Account payable                           113,337                           113,337
    Advance payment                          1,999,540                         1,999,540
    Employees wage payable                     589,368                           559,510
    Tax payable                              1,625,298                         1,617,284Interest payableDividend payable
    Other account payable                     636,044                           855,475Non-current liability due in 1year
    Other current liability                   4,184,249                         1,544,249
    Total of current liability                9,147,836                         6,689,395Non-current liabilities:
    Long-term loanBond payable
    Long-term payableSpecial payableExpected liabilities
    Differed income tax liability             4,180,138                         4,180,138
    Other non-current liabilities             836,792                           836,792
    Total of Non-current liabilities          5,016,930                         5,016,930
                                                  深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    Total of liability                                         14,164,766                            11,706,325Owners equity
    Share capital                                           169,142,356                          169,142,356
    Capital reserves                                          31,606,598                           31,606,598
    Less:Shares in stockSpecial reserves
    Surplus reserves                                           26,309,287                           26,309,287
    Undistributed profit                                    -95,537,624                           -90,792,583
    Different of foreign currencytranslation
    Total of owners equity                                    131,520,617                          136,265,658Total of liabilities and owners
                                                          145,685,383                          147,971,983equity3. Consolidated Profit statement
                                                                                                 Unit:RMB
                Items             Notes   Report period                 Same period of the previous year
    I. Income from the key business                             5,019,787                             5,528,810
    Incl:Business income                                       5,019,787                             5,528,810
    Interest incomeInsurance fee earnedFee and commission received
    II. Total business cost                                     6,669,607                             7,013,815
    Incl:Business cost                                         2,199,834                             2,331,440
         Interest expenseFee and commission paid
    Insurance dischargepayment
    Net claim amount paidInsurance policy dividend paidInsurance policy dividend paid
    Reinsurance expenses
    Business tax and surcharge                              158,799                                       0
    Sales expense
    Administrative expense                                     4,358,499                             4,316,273
                                                       深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    Financial expenses                                         -47,525                           366,102
    Asset impairment loss                                              0                                  0
    Add:Gains from change of
                                                               -13,510                           -48,602fir value (“-”for loss)
    Investment gain(“-”for loss)                             428,646                         -6,734,727
    Incl: investment gains fromaffiliates
    Gains from currencyexchange(“-”for loss)III. Operational profit(“-”for
                                                            -1,234,684                         -8,268,334loss
    Add:Non-business income                                       29,563                             8,413
    Less:Non business expenses                                 2,982,015                             1,517Incl:Loss from disposal of
                                                                                                     529non-current assets
    IV.Total profit(“-”for loss)                              -4,187,136                         -8,261,438
    Less:Income tax expenses                                          0                                  0
    V. Net profit(“-”for net loss                            -4,187,136                         -8,261,438
    Including: Net profit realized bythe entity taken over before thetakeoverNet profit attributable to the
                                                            -4,187,136                         -8,232,521owners of parent company
    Minority shareholders
                                                                    0                            -28,917equity
    VI. Earnings per share:                          --                                  --
    (I)Basic earnings per share                                    -0.02                              -0.05
    (II)Diluted earnings per share                                  -0.02                              -0.05
    VII. Other comprehensive income                               -119,197                         -3,388,301
    VIII. Total comprehensive income                            -4,306,333                        -11,649,739Total comprehensive income
    attributable to the owner of the                            -4,306,333                        -11,649,739parent companyTotal comprehensive incomeattributable minority shareholdersEnterprise combination under same controlling at the end of current period. the net profit for theenterprise to be combined is 0.00.
                                                                 深圳中冠纺织印染股份有限公司 2012 年半年度报告全文Legal representative :Hu YongfengPerson-in-charge of the accounting work:Zhang JinliangPerson-in -charge of the accounting organ:Ren Changzheng4. Profit statement of the Parent Company
                                                                                                            Unit:RMB
               Items                  Notes          Report period                 Same period of the previous year
    I. Income from the key business                                          741,567                               725,313
    Incl:Business cost                                                    239,378                               239,549Business tax and surcharge
    Sales expense
    Administrative expense                                                2,901,344                             2,702,203
    Financial expenses                                                   -633,433                            -1,289,755Asset impairment loss
    Add:Gains from change of
                                                                         -13,510                               -48,602fir value (“-”for loss)
    Investment gain(“-”for loss)                                        11,022                                14,141
    Incl: investment gains fromaffiliatesII. Operational profit(“-”for
                                                                      -1,768,200                              -961,145loss
    Add:Non-business income                                                  5,174
    Less:Non business expenses                                           2,982,015                                      529
    Incl:Loss from disposal ofnon-current assets
    III.Total profit(“-”for loss)                                       -4,745,041                              -961,674Less:Income tax expenses
    IV. Net profit(“-”for net loss)                                   -4,745,041                              -961,674
    V. Earnings per share:                                     --                                    --(I)Basic earnings per share(II)Diluted earnings per share
    VI. Other comprehensive income                                                                              -3,374,860
    VII. Total comprehensive income                                       -4,745,041                            -4,336,534
                                                         深圳中冠纺织印染股份有限公司 2012 年半年度报告全文5. Consolidated Cash flow statement
                                                                                                  Unit :RMB
                 Items                   Report period                   Same period of the previous yearI.Cash flows from operating activities
    Cash received from sales of goods or
                                                            5,167,056                                5,295,137rending of services
    Net increase of customerdeposits and capital kept forbrother company
    Net increase of loans fromcentral bank
    Net increase of inter-bankloans from other financial bodiesCash received against originalinsurance contractNet cash received fromreinsurance business
    Net increase of client depositand investment
    Net increase of tradefinancial asset disposal
    Cash received as interest,processing fee and commissionNet increase of inter-bank fundreceivedNet increase of repurchasingbusiness
    Tax returned
    Other cash received from
                                                             559,535                                  474,345business operation
    Sub-total of cash inflow                                  5,726,591                                5,769,482
    Cash paid for purchasing of
                                                                                                      452,166merchandise and services
    Net increase of client trade andadvance
    Net increase of savings ncentral bank and brother company
                                       深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    Cash paid for original contractclaimCash paid for interest, processingfee and commission
    Cash paid for policy dividendCash paid to staffs or paid for
                                          1,550,781                            1,623,382staffs
    Taxes paid                              1,054,536                              987,685
    Other cash paid for business
                                          2,955,285                            1,890,665activities
    Sub-total of cash outflow
                                          5,560,602                            4,953,898from business activitiesCash flow generated by business
                                           165,989                               815,584operation, netII.Cash flow generated byinvestingCash received from investmentretrieving
    Cash received as investment
                                            21,841gains
    Net cash retrieved from
    disposal of fixed assets, intangible        30,000                                10,000assets, and other long-term assetsNet cash received from disposalof subsidiaries or otheroperational unitsNet cash received from disposal
    of subsidiaries or other                         0                                    0operational units
    Sub-total of cash inflow due to
                                            51,841                                10,000investment activities
    Cash paid for construction of
    fixed assets, intangible assets and         83,272                                11,031other long-term assets
    Cash paid as investment
    Net increase of loan againstpledgeNet cash received fromsubsidiaries and other operational
                                     深圳中冠纺织印染股份有限公司 2012 年半年度报告全文unitsOther cash paid for investment
                                               0                                    0activities
    Sub-total of cash outflow
                                          83,272                                11,031due to investment activitiesNet cash flow generated by
                                          -31,431                               -1,031investment
    III.Cash flow generated byfinancingCash received as investment
    Incl: Cash received asinvestment from minorshareholders
    Cash received as loans
    Cash received from bondplacingOther financing –related ash
                                               0                                    0received
    Sub-total of cash inflow from
                                               0                                    0financing activities
    Cash to repay debtsCash paid as dividend, profit, orinterests
    Incl: Dividend and profit paidby subsidiaries to minorshareholdersOther cash paid for financing
                                               0                                    0activities
    Sub-total of cash outflow due
                                               0                                    0to financing activitiesNet cash flow generated by
                                               0                                    0financingIV. Influence of exchange rate
    alternation on cash and cash             132,554                              -662,245equivalentsV.Net increase of cash and cash
                                         267,112                               152,308equivalents
    Add: balance of cash and cash
                                       53,399,316                           51,786,613equivalents at the beginning of
                                                         深圳中冠纺织印染股份有限公司 2012 年半年度报告全文termVI.Balance of cash and cash
                                                           53,666,428                              51,938,921equivalents at the end of term6. Cash flow statement of the Parent CompanyUnit:RMB
                 Items                   Report period                   Same period of the previous yearI.Cash flows from operating activitiesCash received from sales of goods or
                                                             856,782                                  820,983rending of services
       Tax returned
    Other cash received from
                                                             702,760                                  502,155business operation
    Sub-total of cash inflow                                  1,559,542                                1,323,138Cash paid for purchasing of
                                                                                                      452,166merchandise and servicesCash paid to staffs or paid for
                                                             919,417                                  973,334staffs
    Taxes paid                                                 453,953                                  464,791
    Other cash paid for business
                                                            2,066,267                                 961,154activities
    Sub-total of cash outflow
                                                            3,439,637                                2,851,445from business activitiesCash flow generated by business
                                                           -1,880,095                               -1,528,307operation, netII.Cash flow generated byinvestingCash received from investmentretrieving
    Cash received as investment
                                                              21,841gains
    Net cash retrieved from
    disposal of fixed assets, intangible                          30,000                                    10,000assets, and other long-term assetsNet cash received from disposalof subsidiaries or other
                                      深圳中冠纺织印染股份有限公司 2012 年半年度报告全文operational units
    Other cash receivable forinvestment activities
    Sub-total of cash inflow due to
                                           51,841                                10,000investment activities
    Cash paid for construction offixed assets, intangible assets andother long-term assets
    Cash paid as investmentNet cash received fromsubsidiaries and other operationalunitsOther cash paid for investmentactivities
    Sub-total of cash outflow
                                                0                                    0due to investment activitiesNet cash flow generated by
                                           51,841                                10,000investment
    III.Cash flow generated byfinancing
    Cash received as loans
    Cash received from bondplacingOther financing –related ashreceived
    Sub-total of cash inflow from
                                                0                                    0financing activities
    Cash to repay debtsCash paid as dividend, profit, orinterestsOther cash paid for financingactivities
    Sub-total of cash outflow due
                                                0                                    0to financing activitiesNet cash flow generated by
                                                0                                    0financingIV. Influence of exchange rate
    alternation on cash and cash                    0                                 2,895equivalents
                                                                    深圳中冠纺织印染股份有限公司 2012 年半年度报告全文V.Net increase of cash and cash
                                                                      -1,828,254                                  -1,515,412equivalents
    Add: balance of cash and cash
    equivalents at the beginning of                                       21,483,163                                  23,577,186termVI.Balance of cash and cash
                                                                      19,654,909                                  22,061,774equivalents at the end of term7. Consolidated Statement on Change in Owners EquityReport period
                                                                                                                  Unit:RMB
                                                                       Report period
                                          Owners equity Attributable to the Parent Company
                                                                                                 Minor
               Items                                 Less:         Surplu Comm                           Total of
                                            Capital        Special                 Attribu      sharehol
                                    Share           Shares            s    on risk                       owners
                                            reserve          ized                   table Other   ders
                                    Capital            in          reserve provisi                        equity
                                               s           reserve                 profit        equity
                                                     stock            s      on
                                    169,142 39,742,4                26,704,            -116,02 -515,91 -1,373,51 117,673,58I.Balance at the end of last year
                                       ,356       73                   791               6,610         4      4           2Add: Change of accountingpolicyAdd: Change of accounting
    policyCorrecting of previous errors
                                    169,142 39,742,4                26,704,            -116,02 -515,91 -1,373,51 117,673,58
       Other
                                       ,356       73                   791               6,610         4      4           2
    II.Balance at the beginning of                                                         -4,187,1
                                              -80,951                                             -38,246         -4,306,333
    current year                                                                                36
                                                                                       -4,187,1
    III.Changed in the current year                                                                                   -4,187,136
                                                                                            36
    (I) Net profit                            -80,951                                             -38,246           -119,197
                                                                                       -4,187,1
    (II)Other misc.income                     -80,951                                             -38,246         -4,306,333
                                                                                            36
    Total of (I) and (II)                    0        0     0      0        0         0         0         0      0           0(III) Investment or decreasingof capital by owners1. Capital inputted by owners2.Amount of shares paid and
                                                                      深圳中冠纺织印染股份有限公司 2012 年半年度报告全文accounted as owners equity
    3. Other                                 0       0      0        0        0      0         0        0         0          0
    (IV)Profit allotment1.Providing of surplus reserves2.Providing of common riskprovisions3.Allotment to the owners (orshareholders)
       4.Other                           0       0      0        0        0      0         0        0         0          0(V) Internal transferring ofowners equity1. Capitalizing of capitalreserves (or to capital shares)2. Capitalizing of surplusreserves (or to capital shares)3.Making up losses bysurplus reserves.4. Other(VI) Special reserves1. Provided this year2.Used this term
                                    169,142 39,661,5                  26,704,         -120,21 -554,16 -1,373,51 113,367,24
    (VII)Other
                                       ,356      22                      791            3,746        0         4          9IV. Balance at the end of thistermAmount of the previous termUnit:RMB
                                    Amount of the previous term
                                          Owners equity Attributable to the Parent Company
                                                                                                 Minor
              Items                                  Less:         Surplu Comm                           Total of
                                            Capital        Special                 Attribu      sharehol
                                    Share           Shares            s    on risk                       owners
                                            reserve          ized                   table Other ders
                                    Capital            in          reserve provisi                        equity
                                               s           reserve                 profit        equity
                                                     stock            s      on
                                    169,142 39,872,5                  26,704,         -98,665, 5,874,83 -1,311,59 141,617,90I.Balance at the end of last year
                                       ,356      34                      791              017        6         5          4Add:Retrospective adjustmentcaused by merger of entitiesunder common control
                                                           深圳中冠纺织印染股份有限公司 2012 年半年度报告全文Add: Change of accounting
    policyCorrecting of previous errors
       Other
    II.Balance at the beginning of 169,142 39,872,5            26,704,         -98,665, 5,874,83 -1,311,59 141,617,90
    current year                      ,356       34               791              017          5         5            4
                                         -130,06                           -17,361, -6,390,7               -23,944,32
    III.Changed in the current year                                                                  -61,919
                                              1                                593         49                      2
                                                                           -17,361,                        -17,423,51
    (I) Net profit                                                                               -61,919
                                                                               593                                 2
                                         -130,06                                      -6,390,7
    (II)Other misc.income                                                                                  -6,520,810
                                              1                                            49
                                         -130,06                           -17,361, -6,390,7               -23,944,32
    Total of (I) and (II)                                                                           -61,919
                                              1                                593         49                      2(III) Investment or decreasing
                                     0        0    0   0        0      0         0          0         0            0of capital by owners1. Capital inputted by owners2.Amount of shares paid andaccounted as owners equity3. Other
    (IV)Profit allotment             0        0    0   0        0      0         0          0         0            01.Providing of surplus reserves2.Providing of common riskprovisions3.Allotment to the owners (orshareholders)
    4.Other(V) Internal transferring of
                                     0        0    0   0        0      0         0          0         0            0owners equity1. Capitalizing of capitalreserves (or to capital shares)2. Capitalizing of surplusreserves (or to capital shares)3.Making up losses bysurplus reserves.4. Other(VI) Special reserves
                                                                         深圳中冠纺织印染股份有限公司 2012 年半年度报告全文1. Provided this year2.Used this term
    (VII)Other
    IV. Balance at the end of this      169,142 39,742,4                     26,704,             -116,02 -515,91 -1,373,51 117,673,58
    term                                    ,356          73                    791                6,610      4           4          28. Statement of change in owners Equity of the Parent CompanyAmount of the Current term
                                                                   Amount of the Current term
                 Items
                                                               Less: Specializ           Common               Total of
                                       Share          Capital                   Surplus            Attributa
                                                              Shares in   ed                risk              owners
                                       Capital       reserves                   reserves           ble profit
                                                               stock    reserve          provision             equity
                                      169,142,35                                                              -90,792,58 136,265,65
    I.Balance at the end of last year                    31,606,598                        26,309,287
                                                 6                                                                    3          8
    Add:     Change     of   accounting
       policyCorrecting of previous errors
         Other
    II.Balance at the beginning of 169,142,35                                                                     -90,792,58 136,265,65
                                                     31,606,598                        26,309,287
    current year                                     6                                                                    3          8
    III.Changed in the current year                                                                               -4,745,041 -4,745,041
    (I) Net profit                                                                                            -4,745,041 -4,745,041
    (II)Other misc.income
    Total of (I) and (II)                                                                                        -4,745,041 -4,745,041(III) Investment or decreasing of
                                                 0           0       0             0           0          0           0          0capital by owners1. Capital inputted by owners2.Amount of shares paid andaccounted as owners equity3. Other
    (IV)Profit allotment                         0           0       0             0           0          0           0          01.Providing of surplus reserves2.Providing of common riskprovisions3.Allotment to the owners (or
                                                                         深圳中冠纺织印染股份有限公司 2012 年半年度报告全文shareholders)
       4.Other(V) Internal transferring of
                                              0              0       0          0           0       0           0          0owners equity1. Capitalizing of capitalreserves (or to capital shares)2. Capitalizing of surplusreserves (or to capital shares)3.Making up losses by surplusreserves.4. Other(VI) Special reserves1. Provided this year2.Used this term
    (VII)Other
    IV. Balance at the end of this        169,142,35                                                        -95,537,62 131,520,61
                                                     31,606,598                     26,309,287
    term                                          6                                                                 4          7Amount of the previous term
                                                                                                                    Unit:RMB
                                      Amount of the previous term
                 Items
                                                               Less: Specializ           Common               Total of
                                       Share          Capital                   Surplus            Attributa
                                                              Shares in   ed                risk              owners
                                       Capital       reserves                   reserves           ble profit
                                                               stock    reserve          provision             equity
                                      169,142,35                                                        -77,625,32 149,432,91
    I.Balance at the end of last year                    31,606,598                     26,309,287
                                                 6                                                              6          5
    Add:     Change     of   accounting
       policyCorrecting of previous errors
         Other
    II.Balance at the beginning of 169,142,35                                                               -77,625,32 149,432,91
                                                     31,606,598                     26,309,287
    current year                                     6                                                              6          5
                                                                                                        -13,167,25 -13,167,25III.Changed in the current year
                                                                                                                7          7
    (I) Net profit                                                                                      -6,258,858 -6,258,858
    (II)Other misc.income                                                                               -6,908,399 -6,908,399
    Total of (I) and (II)                                                                                  -13,167,25 -13,167,25
                                                                         深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
                                                                                                                  7          7(III) Investment or decreasing of
                                            0            0           0            0           0       0           0          0capital by owners1. Capital inputted by owners2.Amount of shares paid andaccounted as owners equity3. Other
    (IV)Profit allotment                    0            0           0            0           0       0           0          01.Providing of surplus reserves2.Providing of common riskprovisions3.Allotment to the owners (orshareholders)
       4.Other(V) Internal transferring of
                                            0            0           0            0           0       0           0          0owners equity1. Capitalizing of capitalreserves (or to capital shares)2. Capitalizing of surplusreserves (or to capital shares)3.Making up losses by surplusreserves.4. Other(VI) Special reserves1. Provided this year2.Used this term
    (VII)Other
    IV. Balance at the end of this      169,142,35                                                            -90,792,58 136,265,65
                                                 31,606,598                           26,309,287
    term                                        6                                                                     3          8(III)Basic Information of the Company1. 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 issuedby 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
                                                                      深圳中冠纺织印染股份有限公司 2012 年半年度报告全文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.(III).Basic Information of the CompanyShenzhen Victor Onward Textile Industrial Co., Ltd. (hereinafter referred to as "the Company"),grew out of the Xingnan Printing Factory Co., Ltd, founded in 1980, was the first whollyforeign-owned enterprise in Shenzhen. In April 1984, Xingnan Printing Factory Co., Ltd waschanged into foreign joint venture, and was renamed Shenzhen Victor Onward Textile Industrial Co.,Ltd. . On November 19, 1991, the Company was reorganized into a joint stock limited company andrenamed Shenzhen Victor Onward Textile Industrial Co., Ltd. pursuant to the approval of ShenzhenMunicipal Government.The domestically listed RMB ordinary shares ("A shares, Stock code: 000018" ) and domesticallylisted foreign investment shares ("B shares ,stock code: 200018") issued by the Company werelisted on Shenzhen Stock Exchange in 1992.By June 30, 2012, the total share capital was 169,142,356 million shares, of which circulating A-share99,720,453 shares, circulating B-share 69,421,903. of which Union Holdings Co., Ltd. (hereinafterreferred to Union Holdings ) holding limit-sale A-shares43,141,032 shares, accounting for 25.51%of the total equity, is the controlling shareholder of the company, Union Development Group Co.,Ltd. (hereinafter referred to Union Group)holding circulating A –share 5,821,089 shares, accountingfor 3.44% of the total equity, Union Group holds 31.32% of equity of Hualian Holdings and has theright to control Union Holdings, thus Union Group is the actual controller of the Company.By June 30, 2012, Victor Onward printing and dyeing (Hong Kong) Co., Ltd. (hereinafter referredto as "Hong Kong Victor Onward"), Shenzhen Nanhua Printing and Dyeing Co., Ltd. (hereinafterreferred to as "Nanhua Company"), Nanhua Printing and Dyeing Co., Ltd as well as itswholly-funded subsidiary Nanhua Xingye Co., Ltd (hereinafter referred to as "NanhuaXingye") ,Shengzhong Industrial Co., Ltd. (hereinafter referred to as "Shengzhong") and ShenzhenEast Asia Victor onward Holding (hereinafter referred to as “East Asia Company) are allsubsidiaries of the Company.The Group is mainly engaged in the production and processing (printing and dyeing) and sales of various high-grade fabrics of pure
    cotton, pure linen, polyester-mixed cotton, linen cotton and mixed fiber and finished garments.    Registered address: 26
    Kuipeng Road, Kuiyong Town, Longgang District, Shenzhen                           Legal Representative: Hu Yongfeng(IV)Principal accounting policies, accounting estimates and early errors1.Basis for the preparation of financial statements
                                                                  深圳中冠纺织印染股份有限公司 2012 年半年度报告全文The financial statements was prepared on the basis of the Group's continuous operation.2.Complying with the statements in Accounting Standards for Business EnterprisesThe financial statements of the Group comply with the requirements of Accounting Standards forBusiness Enterprises, truly reflect the integrity of the financial situation, operating results and cashflows, and other relevant information of the company.3.Fiscal yearThe fiscal year of the Group starts on January 1 and ends on December 31 on the Gregoriancalendar.4. Accounting standard moneyThe Company takes RMB as the standard currency for bookkeeping.Standard Currency for bookkeeping of overseas subsidiariesStandard Hongkong Currency for bookkeeping of overseas subsidiaries in Hongkong5. Accounting process method of enterprise consolidation under same and different controlling.(1)Enterprise merger under same control(2)Enterprise merger under different control:6. Methods for compilation of consolidated financial statements(1). Principles to determine the scope of merger:
    The Group will include the subsidiaries which have actual controlling right and the subjectswhich have special purpose into the scope of consolidated financial statements.
    (2)Accounting methods adopted in consolidated financial statements:The consolidated financial statements of the Group shall be compiled in accordance with EnterpriseAccounting Standards No. 33 - Consolidated Financial Statements and the related provisions, themajor internal transaction in the scope of consolidation and transactions shall be offset. The part ofshareholders equity of the subsidiary which does not belong to the parent company, shall beindividually listed as equity of minority shareholders in the consolidated financial statement. Ifthe accounting policy and accounting period of the subsidiary and the company are not consistent,when compile consolidated financial statement, the financial statement of the subsidiary shall beadjusted according to the accounting policy and accounting period of the company.
                                                                                   深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
          For the subsidiary obtained by corporate merger under different control, when prepare consolidated financial
           statements, the individual financial statement shall be adjusted on the basis of fair value of the net assets on the
           purchase day; for the subsidiary obtained by corporate merger under same control, it will be taken as having been
           existed at the year beginning, its assets, liabilities, operating results and cash flow shall be consolidated in the
           financial statement according to original book value since the year beginning of the consolidation period.
           (2)Accounting treatment when the share equity of the same subsidiary is purchased and sold, or sold and
           purchased in successively two years.
    7.   Cash and cash equivalentsThe cash stated in cash flow statement refers to cash in hand and bank deposits usable for payment at anytime. Cash equivalent refers to the investments with holding period of less than 3 months and strongliquidity that are readily convertible to known amount of cash and subject to insignificant risk of changes invalue.8. Foreign currency Convert(1)Foreign currency TransactionsThe foreign currency transactions the Group were accounted according to the amount of foreign currency on the first day of the current monthconverting to the amount of bookkeeping currency. On the balance sheet date, foreign currency monetary items would be converted into RMBby using the spot exchange rate on the balance sheet date, the conversion differences produced shall be directly included in the current loss andgain except the exchange differences produced by foreign currency special loans borrowed for purchasing or production of the assets whichmeet the capitalization conditions. The foreign currency non-monetary items measured by fair value shall be converted into RMB by the spotexchange rate on the fair value date, the conversion differences produced shall be directly included in current loss and gain as fair valuechanges. The foreign currency non-monetary items measured by historical costs shall be converted by using the spot exchange rate on thetransaction date, and its RMB amount will not be changed.(2)Foreign currency statement ConvertThe financial statements of the company and the subsidiaries making HK dollars as bookkeeping currencyshall be converted into RMB. In the course of conversion, the assets & liabilities items shall be convertedby using the spot exchange rate on the balance sheet date, the items of shareholders equity except for theretained profit shall be converted according to the spot exchange rate, the items of incomes and expenses inthe profit statement shall be converted by the approximate exchange rate of spot exchange rate on thetransaction date. The conversion differences of foreign currency statements produced in the aboveconversions shall be individually listed under the item of shareholders equity.
                                                                                        深圳中冠纺织印染股份有限公司 2012 年半年度报告全文The cash flow in the cash flow statement are converted by the average exchange rate of the market ratesannounced in the accounting period. The influences on cash flow from the changes of exchange rate areseparately listed in cash flow statement.
          9. Financial instruments(1) Classification of financial assets:According to investment purposes and economic nature, the financial assets of the Group can be dividedinto the financial assets measured by fair value and the changes included in the current loss and gain, theexpired investments held, receivables and financial assets for sale, the four categories.The financial assets measured by fair value and the changes included in the current loss and gain: mainly refer to the financial assets for sale inshort term, which shall be listed in balance sheet in transactional financial assets.The expired investments held: refer to the non-derivative financial assets which have fixed expire date and fixed or determined recoveringamount, and the management level has the intention or ability to hold the assets.Receivables: refer to the non-derivative financial assets which have no quotation in active market but have fixed or determined recoveringamount, including notes receivable, accounts receivable, interest receivable, dividends receivable and other receivables.Financial assets for sale: include the non-derivative financial assets which are recognized as for sale when they are initially confirmed, and thefinancial assets which are not divided into other categories.(2) Measurement of financial assetsFinancial assets are conducted initial confirmation by at fair value. The relevant expenses to obtain thefinancial assets measured by fair value and the changes included in the current loss and gain shall beincluded in the current loss and gain, the relevant transactional expenses of other financial assets shall bethe initial confirmation amount.At fair value and changes in their gains and losses included in the current period of financial assets andfinancial assets to be sold in accordance with the fair value of follow-up measures; receivables andinvestments held to maturity using the effective interest method to share more than the cost listed.The changes of fair values of financial assets measured by fair value and the changes included in thecurrent loss and gain shall be included in the changing loss and gain of fair value; all the interest and cashdividends obtained during the period holding the assets shall be confirmed as investment income; upon thedisposal of the assets, the differences between the fair value and initial bookkeeping amount shall be
                                                                              深圳中冠纺织印染股份有限公司 2012 年半年度报告全文confirmed as investment loss and gain, and at the same time, the changing loss and gain of fair value shallbe adjusted.The changes of fair values of financial assets measured by fair value and the changes included in thecurrent loss and gain shall be included in the changing loss and gain of fair value; all the interest and cashdividends obtained during the period holding the assets shall be confirmed as investment income; upon thedisposal of the assets, the differences between the fair value and initial bookkeeping amount shall beconfirmed as investment loss and gain, and at the same time, the changing loss and gain of fair value shall
    be adjusted.   Except for impairment losses and monetary financial assets in foreign currency exchange gains and losses,   the financialassets measured by fair value and the changes included in the current loss and gain, on the financial sheetdate, the Group will check the book value of other financial assets on the balance sheet date, if there isobjective evidence showing that impairment has happened on a financial asset, provision for theimpairment shall be drown.
       (3)Recognition basis and measurement for transferred financial assets
            Financial assets to meet one of the following conditions, terminates confirmed: ① the right to receive cash
       flows from the financial asset of the contract termination; ② the financial asset has been transferred, and the
       group will finance almost on all the risks and rewards of ownership of assets transferred to the party; ③ the
       financial asset has been transferred, although the Group has neither transferred nor retained almost on all the risks
       and rewards of ownership of financial assets, but gave up on the control of financial assets.
            Enterprise has neither transferred nor retained almost on all the risks and rewards of ownership of financial
       assets, and did not give up on the control of financial assets, in accordance with their continuing involvement in
       transferred financial assets recognized on financial assets, and confirm the liabilities accordingly.
            Total transfers of financial assets to meet the termination of recognition criteria, the book value of the
       transferred financial assets, and received by the transfer price and the original included in other comprehensive
       income difference between the sum of the changes in the fair value of the cumulative amount of included in the
       current profits and losses.
            Financial assets part transfer meet terminated confirmed conditions of, will by transfer financial assets
       overall of book value, in terminated confirmed part and is not terminated confirmed part Zhijian, in accordance
       with their of relative fair value for sharing, and will due to transfer and received of on price and the should sharing
       to terminated confirmed part of original meter into other integrated income of fair value changes Trojan amount of
       and, and sharing of Qian in book amount of difference meter into Dang period profit and loss.
                                                                                       深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
           (4)financial LiabilitiesThe financial liabilities of our Group shall be classified into the financial liabilities or other ones which are measured at their fair values and thevariation of which is recorded into the profits and losses of the current period when they are initially recognized.The financial liabilities, which are measured at their fair values and the variation of which is recorded into the profits and losses of the currentperiod, including transactional financial liabilities and the financial liabilities designated which are measured at their fair values and variationof which is recorded into the profits and losses of the current period when they are initially recognized, shall be made subsequent measurementon its financial assets according to their fair values, and the profits and losses arising from the change in the fair value and the dividends andinterests expenses related to the financial liability shall be recorded into the profits and losses of the current period.The subsequent measurement shall be made on the basis of the post-amortization costs by adopting the actual interest rate method for otherfinancial liabilities.When financial liabilities present obligations in whole or in part have been discharged, terminating confirmed part of thefinancial liabilities or obligations have been discharged. Terminating confirmed part of the difference between the bookvalue and paying the price, included in the current profits and losses.(5)The determination method for fair value of financial assets and financial liabilities1.If there is active market for a financial instrument, the quoted prices in the active market shall be used to determine the fair values thereof. Inthe active market, the quoted prices of our Group for the financial assets it holds or the financial liabilities it plans to assume shall be thepresent actual offer for the corresponding fair values of assets or liabilities, while the quoted prices of our Group for the financial assets it plansto acquire or the financial liabilities it has assumed shall be the available charge for the corresponding fair values of assets or liabilities. Wherethere is no available offer or charge for a financial asset or financial liability, but there is no any significant change to the economicenvironment after the latest transaction day, we shall adopt the market quoted price of the latest transaction to determine the fair value of thesaid financial asset or financial liability.2.Where there is no active market for a financial instrument, we shall adopt value appraisal techniques to determine its fair value. The valueappraisal techniques mainly include the prices adopted by the parties, who are familiar with the condition, in the latest market transaction upontheir own free will, the current fair value obtained by referring to other financial instruments of the same essential nature, the cash flowcapitalization method and the option pricing model, etc.
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              (6)Providing of impairment provision on financial assets (exclude receivable accounts)
          Except for financial assets at fair value through profit and loss, the Group assesses at the balance
          sheet date the carrying amount of other financial assets. If there is any objective evidence that a
          financial asset is impaired, the Group provides for such impairment losses.
          If there is objective evidence that an impairment loss has been incurred on financial assets carried at
          amortized cost, the amount of the loss is measured as the difference between the assets carrying
          amount and the present value of estimated future cash flows (excluding future credit losses that
          have not been incurred). If in a subsequent period, the amount of the impairment loss increases and
          the increase can be related objectively to an event occurring after the impairment is recognized, the
          previously recognized impairment loss is reversed by adjusting the allowance account. The amount
          of the reversal is recognized in the income statement.
          If the fair value of an available-for-sale financial asset incurred a significant or prolonged decline,
          the cumulative loss arising from the decline in fair value that has been recognized directly in
          shareholders equity is removed from shareholders equity and recognized in the income statement.
          If, after impairment loss has been recognized on an available-for-sale debt instrument and the fair
          value of the debt instrument increases in a subsequent period whereby the increase can be
          objectively related to an event occurring after the impairment losses are recognized, the impairment
          loss is reversed and recognized in the profit and loss. If, after impairment loss has been recognized
          on an available-for-sale equity instrument, the fair value of the equity instrument increases in a
          subsequent period, the impairment loss is directly recognized in shareholders equity.
          (7)If investment held to mature is recztegorized to sellable financial assets, please state the
          intention or evidence of change incapability
          10. Recognition standard and providing basis of bad debt provision on receivable accountsThe Group will recognize the following cases as the determination standard of loss on bad debts for accounts receivable: the debt or otherscan't be repaid in the foreseeable period, e.g. the debtor units have been closed, revocation, bankruptcy, insolvent, severe insufficient cash flowor the occurrence of natural disasters; the repayment obligations are delayed and failed to be performed beyond 3-year by the debt entities;there are other absolute evidences proving that unable to be collected or little possibility.The Group adopted the method of counter compensation for the possible bad debt losses, which weredrown provision for bad debt by the method of individual recognition at period end and were included inthe current loss and gain. The receivables which were not to be recovered, after being approved by theGroup, would be regarded as bad debt loss and the provision for bed debt would be written off.(1)Accounts receivable with material specific amount and specific provisioned bad debt preparation.
          Judgment criteria or amount standard of material Account                              receivable       with      special     account
                                                                        深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    specific amount or amount criterial                                    receivable exceeding RMB 1 million is viewed as
                                                                       material accounts receivable.Provision method with material specific amount and Provision Had debt preparation in accordance
    provision of specific bad debt preparation                              with the difference of present value of future
                                                                        cash flow below the book value .(2)The accounts receivable of bad debt provisions made by Group
                                      Method for recognition of
                Name                  impairment allowances by                     Basis of determination of groups
                                                group
                                                                  The group is classified by the credit risk features basised on the
    Group of account age                 The age analysis
                                                                   account age of receivables
                                                                  The Group is classified by the credit risk features based on the
    Group of Related party               Other
                                                                  relations of account receivables and transaction objects
                                                                  The Group is classified by the credit risk features basised on the
    Deposit group                        Other
                                                                  account age of receivables .Accounts on age basis in the portfolio:√applicable□ not applicable
                Age                          Rate for receivables(%)                      Rate for other receivables(%)
    Within 1 year(Included 1 year)                                         3%                                                       3%
    1-2 years                                                              10%                                                      10%
    2-3 years                                                              50%                                                      50%
    Over 3 years                                                           100%                                                     100%3-4 years4-5 yearsOver 5 yearsAccounts on percentage basis in group:□ applicable √not applicableAccounts on other basis in group:√applicable□ not applicable
                         Name                                                             Notes
                                                                              深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
                                                          Special relationship between the related party and the Group (such as joint
    Related party Group                                       ventures, associates, etc.), there is a little balance between the predicted
                                                          future cash flow and the carrying amount.
                                                          Including the rent deposit, purchase deposit and reserve deposit, etc., but
    Deposit group                                             without great individual amount and the bad debt reserves withdrawn by
                                                          combination are difficult to reflect the accounts receivable of risk features.
      (3)Account receivable with non-material specific amount but specific bad debt preparationReason of specific bad debt preparation provision:Accounts receivable with non-material specific amount and being not able to relent its risk character by provisioning bad debtpreparation in accordance with portfolioProvision method of bad debt preparationBad debt preparation will be provisioned in accordance with the difference of present value of its future cash flow below its bookvalue.11.  Inventories(1)The inventories of the Company include raw materials, work-in-process, finished products,low-value and easily-worn articles and packing articles and are stated at the lower of cost and netrealizable value.Perpetual inventory system was implemented for inventory, the inventory would be pricedaccording to actual cost; upon receiving or sending inventory, weighted average method would beused. The low value consumable products would be amortized by method of one-time writing off.(2)Pricing method of stock delivered□ firs-in –first-out □ weighted average□ individual recognition □otherGoods in stock, products in production and other materials directly for the sale, the amount of therealizable net value shall be determined according to the estimated sale price deducting theestimated sale expenses and relevant taxes; the amount of realizable value of material inventory forproduction shall be determined according to the estimated sale value of finished products deductingthe estimated cost which will happen before the completion and estimated sale cost and relevanttaxes. The inventory holding for the implementation of sale contract or service contract, therealizable net value shall be accounted on the basis of contract price; if the quantity of inventoryheld by enterprise is bigger than the quantity ordered in the sale contract, the realizable net value ofthe excess inventory shall be accounted on the basis of general sale price.(3)Confirmation basis of stock net realizable value and withdrawal method of inventory falling price reserves.The inventory at year end can be priced by depending on which is lower between cost andrealizable net value if the inventory were damaged or full or partly unused or the sale price lowerthan cost and other reasons. The provision for devaluation of finished products and big rawmaterials shall be drown according to the difference which the cost of individual inventory itemhigher than the realizable net value; other raw materials with large quantity and low unit price shallbe drown provision for devaluation according to categories.
                                                                   深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(4)Inventory system√ Perpetual inventory □ Fixed date inventory □Other(5)Amortization method of consumption goods with low value and wrap pageConsumption goods with low valueConsumption goods with low value adopt one time amortization method when used.PackingWrap page:Wrap page adopts one time amortization when used9.Long-term equity investment(1)Investment cost confirmation
    The long-term equity investments obtained through merger of companies under same controlthe merger were the owner's equity book value of the shares as a long-term equity investment ofinitial investment cost. The long-term equity investments obtained through merger of companiesunder different control shall make the fair value which made on the merger (purchase) to pay thecontrol of the assets or liabilities as the merger cost.Apart from the long-term equity investments stated above, the long-term equity investment obtainedby cash, the initial investment obtained by cash will be determined according to the price actuallypaid, initial investment costs include the direct costs, tax, and other necessary expenses to obtaininglong-term investment; the initial investment will be determined according to the fair value of theequity securities issued; the long-term equity investments invested by investors, the initialinvestment cost shall be determined according to contract value; the long-term equity investmentobtained by debt restructuring, non-monetary assets or other methods, the initial investment costshall be determined according to the relevant accounting standards.(2)Rear measuring and profit and loss confirmation methodIf the subsidiary uses the cost method to account, adjustment shall be conducted according to equitymethod when prepare the consolidated financial statements; the joint venture and joint ventureinvestment using the equity method; for the long-term equity investments which have no control orjoint control or significant influence and no price in an active market, the method of cost shall beadopted to account; the long-term equity investments which have no control or joint control orsignificant influence, there are quotations in an active market and the fair value can be reliablymeasured, shall be accounted as financial assets for sale.When using the method of cost accounting, the long-term equity investments were priced by the
                                                                      深圳中冠纺织印染股份有限公司 2012 年半年度报告全文initial investment costs.Additional investment to recover the cost of long-term equity investment.When using the equity method accounting, the current investment gains and losses are the share ofnet losses and gains to be owned or shared and achieved in the current year by the unit beinginvested. When determining the share to be shared by the unit being invested, on the basis of thefair value of the identifiable assets, according to the accounting policy and accounting period of theGroup, offsetting the internal transaction loss and gain and the part that the equity proportionattributable to the joint enterprise and united enterprise, and confirm the net profit of the unit beinginvested after profit adjustment.For the long-term equity investments on joint venture enterprises and joint owned enterprises heldbefore the first implementation date, if existing the debit difference relating to the equity investment,the debit difference of equity investment, after deducting the investment loss and gain according tothe original remained period, should be confirmed as investment gains and losses.The Group shall adopt the cost method to calculate for those invested units that never have thejointed control or significant impacts due to the investment reduced, and a long-term equityinvestment for which there is no quoted price in the active market and whose fair value cannot bereliably measured; Also, the cost method shall be adopted to calculate for the long-term equityinvestment able to be implemented and controlled to the invested units due to the investmentsupplemented; Moreover, the equity method shall be adopted to account for performing the jointedcontrol or significant impacts to the invested units but no control formed due to the investmentsupplemented, or without control to the invested units but able to implement the long-term equityinvestment of jointed control or major impacts to the invested units due to disposing of theinvestment.The gap between the carrying amount and actual payment gained in disposal of the long-term equityinvestment will be recorded into the investment interest of the current period. Using the equitymethod for calculating the long-term equity investment which is recorded into the owner's equitydue to other changes except for the net profits or losses of the invested units, the initial partsrecorded into the owner's equity shall be transferred into the investment returns of the current periodwhen disposal of the investment.
    (3)   Confirm the basis that has common control and major infection upon invested unit.Long-term equity investments mainly include the equity investments which are held by the Groupand the ones that the units being invested can be controlled or jointly controlled, or the equityinvestments which have not quotation in active market and the fair value can not be reliablymeasured.Joint control refers to the control that common control on some economic activities according tocontract. The references for the determination of common control are the business activities whichany operating party can not be controlled independently; the decisions relating to basic operatingactivities of the joint venture enterprise are to be agreed by all joint parties.Significant impact refers to having the right to participate in decision making on financial and
                                                                    深圳中冠纺织印染股份有限公司 2012 年半年度报告全文operating policies of the units being invested but can not control or jointly control the making ofthese policies. The determining reference of significant impact is to own 20% (inclusive) or morebut less than 50% of the voting shares directly owned by the Group or owned through subsidiaries,unless there is clear evidence that under that circumstance the production operating decision can notbe participated and no major influence will formed.(4)Depreciation testing method and depreciation reserve withdrawal method.
    The Group conducts inspection on long-term equity investments, fixed assets, construction inprogress, intangible assets with limited service life on every balance sheet date. when exist thefollowing signs showing that the assets may have impairment, the Group will conduct impairmenttest. The intangible assets without certain service life, whether it has impairment signs, impairmenttests shall be conducted at the end of each year. If the recoverable amount of single asset can not betested, it shall be tested on the basis of the asset group the asset belong to or the asset combination.After the impairment test, if the book value of the asset exceeds its recoverable amount, thedeficiency is recognized as the impairment loss, upon the confirmation of the above assets, they willnot be transferred back in the following accounting period. The recoverable amount of the assetrefer to the net amount of the fair value of the asset deducting disposal cost of assets and the presentvalue of the expected future cash flows.
    The signs of impairment as follows:(1). Current market value of assets decreased significantly, the decline is significantly higher thanthe decline due to time passage or normal use.(2) The economic, technical or legal environment of the company and the market of the assets willhave significant change in the current period or in the near future, therefore negative impact on theenterprise.(3) Market interest rates or other market return rate of investment in the current period have beenincreased, thus affecting the discount rate of the predicted cash flow, and resulting in the significantreduction in the amount of recoverable assets.(4) There is evidence showing that the assets were actually obsolete or damaged.(5) The assets have been or will be idle, ended the use or disposed in advance.(6)There are evidences of internal report showing that the economic performance of the assets hasbeen lower than or less than what expected, such as the net cash flow created by assets or theoperating profits (or losses) realized are far below (or above)the expected amount.(7) Other signs showing the assets may have or have had impairment.13. Investment real estateThe investment real estates of the Group are the rental buildings.The investment real estates are accounted by the cost, the purchased investment real estates includethe cost of the purchase price, related taxes and fees and other expenses which can be directlyattributable to the assets; the costs of investment real estate self constructed include the necessaryexpenses to construct the asset to reach the predicted use state.
                                                                      深圳中冠纺织印染股份有限公司 2012 年半年度报告全文The Group adopts the cost method to conduct follow-up measurement on investment real estates areaccounted devaluations and amortized. The expected service life, net residual rate and valuedepreciation rates of investment real estate are as follows:
    Type                                    Expected useful Estimated residual value Annual depreciati
                                               life(Year)                rate              on rate(%)
    Real estate in                       20-50 years                                     0%             2%-5%Hongkong
    Real estate in                       20-30 years                                    10%           3%-4.5%China
    If the investment real estate is changed to self use, since the date of change, investment realestate shall be converted into fixed assets or intangible assets. The function of self-use real estate isto earn rent or capital appreciation, then since the date of change, the fixed assets or intangibleassets shall be converted into investment real estate. When the conversion happens, the book valuebefore the conversion will be the book value after the conversion.When the real estate investment is disposed or will never be used, and economic interests can not beobtained from the disposal, the confirmation of the investment real estate shall be terminated. Theamount of the income from the sale, transfer, disposal of the investment in real estate deducting thebook value and related taxes and fees shall be included in the current loss and gain.
    Using the fair value model for subsequent measurement, should disclose the accounting policy adoptedpursuant to, including the identification of investment real estate market real estate locations have active basis;Companies able to make the same or similar from the real estate market real estate market prices and otherrelevant information, so as to estimate the fair value of investment property basis; Indication of when to estimatethe fair value of investment property key assumptions and main determining factors involved.14. Fixed assets(1)Confirmation conditions of fixed assets
    Fixed assets refer to the tangible assets which have the following characteristics at the sametime, namely, held for production of goods, providing services, leasing or operation andmanagement, and the life span shall not be more than a year, and the unit value is high.(2)Cognizance evidence and pricing method of financial leasing fixed assets
       Classification of fixed assets: houses and buildings, machinery and equipments, transportation
                                                                             深圳中冠纺织印染股份有限公司 2012 年半年度报告全文equipments, office equipments and others. The fixed assets shall be measured according to theactual cost to obtain them, including, the cost of purchasing the fixed assets including the purchaseprice, value-added tax, import tariffs and other related taxes, and other expenses happened to reachthe predicted use state; the cost of building the fixed assets, which are composed of the expenses toreach the predicted use state of the assets; the fixed assets invested by investors, the value on thecontract or agreement shall be the accounting value, but if the contract or agreement value is not fair,the fair value shall be accounted; the fixed leased assets, the lower amount of the fair value ofleased assets and the present value of the lowest lease payment shall be as the accounting value.
    Follow-up expenditures on fixed assets, including major repair expenses, expenses on updated improvement            and other, Toconfirm compliance with the conditions of fixed assets, it shall be included in the cost fixed assets, the recognition of book value of
                               If not meeting the conditions of confirming fixed assets, they shouldreplaced the part shall be terminated;be included in the current period.(3)Fixed assets depreciation method
    In addition to the fixed assets which depreciation and impairment had already fully accountedand the lands which are separately accounted, the Group accounts depreciation on all fixed assets.The method of average number of years will be used when accounting depreciation which will beincluded in the costs and expenses of the relevant assets. The predicted net residual rate, classifieddepreciation years and depreciation rates are as follows:
    Type                                          Expected useful        Estimated residual value rate      Annual depreciation rate(%)
                                                      life(Year)
    Produce House and Building          20-50                            0-10%                           2%-5%
    Machinery and equipment             5-14                             10%                             6%-18%
    Electronic Equipment                5                                10%                             18%
                                    4-5                              10%                             18%-22.5%
    Transportation equipmentOther equipment
    financial leasing fixed assets                   --                               --                               --thereunto:House and BuildingMachinery and equipmentElectronic Equipment
    Transportation equipment
                                                                     深圳中冠纺织印染股份有限公司 2012 年半年度报告全文Other equipment(4)Depreciation measuring method and depreciation reserves withdrawn method of fixed assets
    At the end of each year, the Group shall recheck the predicted service life of fixed assets, thepredicted net residual value and depreciation method, if changes happen, then it shall be treated asaccounting estimate.(5)Other
    When the fixed assets were disposed, or expected to be used or the disposal can not haveeconomic interests, the confirmation of the fixed assets shall be terminated. The income from thesale, transfer or damage of the fixed assets deducting the book value and related taxes shall beincluded in the current loss and gain.15. Construction in progress(1)Categories of projects under construction(2)Standard and timing for transferring of projects under construction to fixed assetsThe price of the construction project: determine the costs according to the actual expenditure on theproject. Measure the price of the self-operated projects according to the direct materials, directwages, direct construction costs; Measure the turnkey projects according to the price should be paidon the project; measure the project of equipment installation according to the value, of theequipment, installation costs, and the expenditures on the trial operation to determine the projectcosts. The costs of projects under construction also include the cost of borrowing to be capitalizedand exchange gain and loss.The time for the construction project converted to the fixed assets: the fixed assets of the company reached thepredicted state, according to the budget of the project, construction cost or the actual cost of the project, transferthe fixed assets according to the predicted price, account the depreciation from the next month on. Upon finishingthe procedures, make relevant adjustment.
    (3)Impairment text and providing of impairment provisions on projects under construction16. Borrowing cost(1)Principle of the recognition of capitalized borrowing costs
    Borrowing costs include interest on borrowings, amortization of discount or premium, as well as
                                                              深圳中冠纺织印染股份有限公司 2012 年半年度报告全文the supporting costs and exchange difference due to foreign currency borrowing. The borrowingcosts which can be directly attributed to capitalized condition, and taken place in the capitalexpenditure, borrowing costs have taken place, in order to meet the assets available for sale orpurchase of the necessary state of construction or production activities, the capitalization begins;when the construction or purchase of the conditions of production in line with the capital assetsreached the sale state, the capitalization should stop. And the rest borrowing costs should berecognized as expenses in the current period.(2)Capitalizing period of borrowing expenses
    The assets which meet capitalization conditions, refer to the fixed assets, investment realestates and other inventories which are constructed for a long time (usually more than one year) toachieve the intended use or sale of state to.If meet the capitalization conditions or non-normal breaks occurred in the course of production andthe break time is more than three months, then the capitalization of borrowing costs shall besuspended; when the acquisition or construction or production meet the conditions of capitalizationand achieve the predicted use or sale state, Asset acquisition or production activities began.
    (3)Temporarily suspension of capitalizing period
    When the construction or purchase of the conditions of production in line with the capital assetsreached the sale state, the capitalization should stop. And the rest borrowing costs should berecognized as expenses in the current period.(4)Calculating of borrowing expense capitalizingThe expenses on interests for the specialized loan happened in current period deducting the interestincome from the bank or the investment income from temporary investment should be capitalized;the general assets of the borrower in accordance with the cumulative excess of expenditure over theassets of the specialized part of the borrower multiplied by the weighted average expenditureoccupied by the weighted average borrowings to determine the amount of capitalization, until therestart of construction or purchase of assets. The capitalization rate shall be calculated and determined in thelight of the general borrowing and weighted average interest rate.
                                                                深圳中冠纺织印染股份有限公司 2012 年半年度报告全文17. Biological assets18.Oil gas assets19.Intangible assets(1)Pricing of intangible assets
    The intangible assets of the Group include land use rights and computer software. Including:For the intangible assets purchased, the actual purchase price was the actual cost; For the intangibleassets invested by investors, The actual cost of intangible assets invested by investors, shall bedetermined according to the contract or agreement value, but if the contract or agreement values arenot fair, the actual costs shall be determined according to the fair value.
    Since the date of selling land use rights, they are amortized according to the years sold; patenttechnology, non-patent technology and other intangible assets are amortized in accordance with theexpected number of years, the benefited years specified in the contract and the effective lengthaccording to law. The amount to be amortized will be included in the related asset costs and currentloss and gain according to the benefited targets.
       The predicted service life of the intangible assets and amortization methods should berechecked and adjusted at the end of each year. Recheck the intangible assets with uncertain servicelife in each accounting period should be rechecked, if there is evidence showing that the service lifeof the intangible asset is limited, then estimate its service life and amortized it within the predictedservice life.(2)Estimation of service life of intangible assets with limited service life
           Name                 Expected useful life                              Basis(3)Intangible assets without certain useful life(4)Provision for impairment of investment assets(5)Dividing of research stage and development stage of internal R& D projects(6)Accounting of internal R & D expenses
                                                             深圳中冠纺织印染股份有限公司 2012 年半年度报告全文20.Long-term amortization expenses21.Asset transferring with repurchasing terms22.Anticipated liabilities(1)Recognition of expectable liabilities(2)Accounting of expectable liabilities23.Share payment and equity instrument(1)Category of share payment(2)Recognition of fair value of equity instruments(3)Recognition basis of best estimation of exercisable equity instruments(4)Accounting treatment of share payment plan to be implemented, revised , and terminated24.Repurchasing of the Companys shares25. Revenues
    (1). Recognition time for sales of goodsThe Group's revenues mainly include: incomes from sales of goods and transferring assets use right.The principle of income confirmation is as follows:
    When the Group had transferred the ownership of the risks and rewards of the commodities to thebuyer, the Group does not keep the management right relating to ownership and does not implementeffective control on the commodities sold out, the income amount can be reliably measured, and therelated economic benefit will possibly flow into the enterprise, and when the related costs mayhappen or had happened can be measured reliably, the realization of the commodity sold out shouldbe confirmed.The economic interests relating to transaction can flow into the company, and the relevant incomesand costs can be reliably measured, the sales income of transferring assets use right shall beconfirmed.
                                                               深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(2)Incomes from transferring asset use right.(3)Deciding of completion percentage when percentage basis is adopted to recognize income from serviceproviding or construction contracts.
    26.   Governmental subsidy(1)Categories(2)Accounting treatment
      Government subsidies, when the Group can meet the conditions attached and can receive,shall be confirmed. If government subsidies are monetary assets, they shall be measured accordingto the amount received; the subsidies allocated according to rated standards, they shall be measuredaccording to the amount receivable. If government subsidies are non-monetary assets, they shall bemeasured according to fair value; if the fair value can not be reliably measured, they shall bemeasured according to nominal amount (1 yuan).The government subsidies relating to assets shall be recognized as deferred income, and beaveragely distributed within the service life of relevant assets, and be included in the current lossand gain. If the government subsidies relating to income are used to compensate the relatedexpenses and losses, they shall be confirmed as deferred income and be included in the current lossand gain in the period of confirming relevant expenses. If used to compensate the relevant expensesand losses happened, they shall be included in the current loss and gain.27. Deferred income tax assets/Deferred income tax liability
      (1)Confirmation of deferred income tax assetsThe Group shall determine the deferred income tax assets produced by the deductible temporarydifferences within the amount limit of payable taxes which are likely used to deduct the temporarydifferences. The book value of the recognized deferred income tax assets shall be deducted whenthe deferred income tax assets produced by the deductible temporary differences within the amountlimit of payable taxes which are likely used to deduct the temporary differences. When enoughpayable tax can be obtained, the deducted amount shall be transferred back. On the balance sheetdate, deferred income tax assets and deferred income tax liabilities shall be measured by thepredicted application rate.
                                                                           深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    (2) The confirmation of deferred income tax liabilityDeferred income tax assets and deferred income tax liabilities shall be confirmed according to thedifference between the tax base of assets and liabilities and their book value (temporary differences).On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall bemeasured by the predicted application rate.28.Operational leasing and Financing leasing(1)Accounting of operational leasing
    Operating lease refers to the other lease apart from financing lease. As the lessee, during the leaseperiod, the Group included the related asset cost and current losses and gains by the straight-linemethod during the lease period. The rent of the Group will be confirmed as income during the leaseperiod by the straight-line method.(2)Accounting treatment of financing leasing
    Financing lease essentially refers to the lease that transferred all the risks and rewards relating to asset ownership. As the lessee,on the beginning date of lease, the Group took lower one in the cash of the fair value and the lowest lease payment as thebook-keeping value of the fixed assets leased in by financing, and the lowest lease payment as the accounting value of the long-termpayment, and the difference between the them will be recorded as financing costs not confirmed.29.Sellable assets in possession(1)Recognition of sellable assets in possession(2)Accounting treatment of sellable assets in possession30.Securitilization of assets31.Hedging instruments
                                                                            深圳中冠纺织印染股份有限公司 2012 年半年度报告全文32.Change of main accounting policies and estimationsIs there any material change of accounting policies occurred in the year.□ Yes √ No(1)Change of accounting policiesIs there any change in accounting policies in the report period□ Yes √ No(2)Change of accounting estimationsIs there any change in accounting estimations in the report period□ Yes √ No33.Correction of accounting errors in previous periodIs there any accounting error with previous period found in the report period□ Yes √ No(1)Retrospective restatementIs there any retrospective restatement on the accounting error with previous periods done in the report term .□ Yes √ No(2)Future adoption methodIs there any future adoption method apply able to accounting errors with previous period, found in the report period□ Yes √ No34.Other principal accounting policies, estimations and preparation method of financial statements(V)Taxation1.Main categories and rates of taxes
                   Tax items                                      Tax basis                                  Tax rate
                                                  Income from sales of products and
    VAT                                                                                         17%
                                                  processingExcise
    Business tax                                                Business income                 5%
                                                                        深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    City maintenance and construction tax            Turnover tax                            7%
    Enterprise income tax                            Amount of income taxable                25%
    Education surtax                                 Turnover tax                            3%
    Local surcharge for Education                    Turnover tax                            2%Income tax rate apply able to branches and factories2.Preferential tax and approving documents3.Other statements
    The interest rate of corporate income tax of the company and subsidiaries in China mainland is 25%,according to the State Council on December 26, 2007, of the [2007] No. 39 Notice on the Implementation ofEnterprise Income Tax Preferential Policies for the Transition, the enterprise income tax rate of the Company andthe subsidiaries in China mainland gradually transited from 15% to 25%, the company implement the transitionrate of 25% in 2012. the interest rate of the income from Hong Kong of the subsidiaries in Hong Kong is 16.5%.The subsidiaries of the Company in Hong Kong do not need to pay VAT. The subsidiaries of the Company inHong Kong do not need to pay business tax. The subsidiaries of the company in Hong Kong do not need to payCity construction tax and education additional expenses. subsidiaries in Hong Kong do not pay property taxes.
    (VI) Enterprise consolidation and combined financial statementsOverall statement on consolidating of entities and consolidated financial statements:1. Subsidiary(1)Subsidiary obtained through establishment or investment
                                                                                                                                                           深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
                                                                                                                                                                                                                  Unit:RMB
                                                                                                                                                                                                         After wrote down
                                                                                                                                                                                                       current period loss of
                                                                                                                                                                                       Amount
                                                                                                                Other projects                                                                         minority shareholders
                                                                                                                                 Holdin                Whether                       used to write
                                                                                                 Actual            balance                 Proportio                                                   over equity beginning
                                                                                                                                   g                   consolida   Interest of        down lost
    Full name of                     Registratio              Registered       Business            capital         essentially                 n of                                                        share of minority
                 Subsidiary type                 Business                                                                        propor                 tion of     minority         included in
    subsidiary                       n place                   capital          scope           amounts of        from net                   voting                                                      shareholders in the
                                                                                                                                  tion                  report     shareholder         minority
                                                                                                 the end        investment to              rights(%)                                                    subsidiary from the
                                                                                                                                  (%)                    form                        shareholder
                                                                                                                 subsidiary                                                                              parent companys
                                                                                                                                                                                       interest
                                                                                                                                                                                                         share ,Balance of
                                                                                                                                                                                                          Owner's equity
                                                                          Purchase of raw
                                                                          materials,Hong Kong
                 Limited                                    2,400,002(Hmarketing          of
                                                                                               2,400,002(H
    Victor Onward                      Hongkong Trade                         printed and dyed                                        100%        100% Yes                           0                 0                          0
                 Company                                           KD)                                KD)
    Co., Ltd.                                                                 woven    fabrics,
                                                                          investment and
                                                                          holding business
                                                                          Sales           of
    Shenzhong        Limited                                    1,000,000(HCorduroy,               1,000,000(H
                                   Hongkong Trade                                                                                 100%        100% Yes                           0                 0                          0
    Company          Company                                           KD)dyed cloth and                  KD)
                                                                          printed cloth
                                                                          Production and
    Nanhua           Limited                                    85,494,700( sales of printed 85,494,700(                              69.44
                                   Shenzhen Production                                                                                       69.44% Yes                          0                 0                          0
    Company          Company                                         HKD) cloth and dyed                HKD)                               %
                                                                                cloth
                 Limited                                     10,000(HKSales of printed 10,000(HK
    Xinye Company                      Hongkong                                                                                       100%        100% Yes                           0                 0                          0
                 Company                                                D)cloth and dyed                   D)
                                                                                                                      深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
                                                                      cloth
                                                                      Textilet,Print
                                                                      ing          and
                                                                      dyeing
                                                                      industry and
    Shenzhen East Limited                                                 Raw
                                 Shenzhen Trade             3,000,000                     3,000,000   51%   51% Yes           -1,373,514          0                   0
    Asia Co., Ltd. Company                                                materials ,M
                                                                      achinery
                                                                      equipment
                                                                      and         other
                                                                      fabricsOther statements on Subsidiaries obtained through incorporation or investment:
                                                                                            深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(2)Subsidiaries procured through merger of entities under common controlUnit:RMB
                                                                                                                                                       After wrote
                                                                                                                                                      down current
                                                                                                                                                      period loss of
                                                                                                                                        Amount           minority
                                                                                    Other
                                                                                                                                        used to        shareholders
                                                                                   projects
                                                                                                                 Whet                     write         over equity
                                                                                   balance Hol Propo
                                                                         Actual                                   her      Interest      down           beginning
                                                                                   essentiall ding rtion
    Full name                  Regist                 Registe                capital                                 conso        of           lost           share of
              Subsidiar               Busines                 Busines               y from      pro      of
    of                     ration                   red                  amount                                  lidati minority included                minority
               y type                    s                    s scope                 net       port voting
    subsidiary                 place                  capital                 s of                                   on of sharehold            in        shareholders in
                                                                                   investme ion rights
                                                                         the end                                 report       er        minority the subsidiary
                                                                                     nt to      (%)     (%)
                                                                                                                 form                   sharehol         from the
                                                                                   subsidiar
                                                                                                                                           der             parent
                                                                                       y
                                                                                                                                        interest        companys
                                                                                                                                                      share ,Balance
                                                                                                                                                        of Owner's
                                                                                                                                                           equityOther statements on Subsidiaries procured through merger of entities under common control:(3)The company has no subsidiary company acquired via enterprise consolidation under same controlling.
                                                                                                                                                          Unit:RMB
                                                                                                                                                      After wrote down
                                                                                                                                                       current period
                                                                                                                                        Amount
                                                                                     Other                                                             loss of minority
                                                                                                                 Wheth                   used to
                                                                                    projects    Hold                                                  shareholders over
                                                                         Actual                        Proport     er                     write
    Full name                                                                          balance     ing                                                   equity beginning
                           Registra               Registrat              capital                       ion of consoli Interest of down lost
    of        Subsidiary              Business                Scope of             essentially prop                                                   share of minority
                             tion                   ion                  amounts                       voting dation       minority     included
    subsidiary     type                  character               business             from net ortio                                                      shareholders in
                            Place                  capital                 of                          rights(     of     shareholder       in
    company                                                                           investment    n                                                     the subsidiary
                                                                         the end                         %)      report                 minority
                                                                                       to       (%)                                                    from the parent
                                                                                                                  form                  sharehold
                                                                                   subsidiary                                                            companys
                                                                                                                                        er interest
                                                                                                                                                      share ,Balance of
                                                                                                                                                       Owner's equity
                                                                          深圳中冠纺织印染股份有限公司 2012 年半年度报告全文Other statements on Subsidiaries procured through merger of entities under different control:2. Entities with special purposes or entities on which the Company has controlling power throughentrusted operation or leasing□Applicable √Not applicableOther statement on entities with special purposes or entities on which the Company has controlling power through entrustedoperation or leasing:
    3.   Changes of combination scope at current periodChange of consolidation range:□Applicable √Not applicable4.Entities included or excluded in the consolidation range in the report period.There is no other changes in consolidation scope except this. there is no other main part to be newly included or to be excluded inconsolidation scope of this period.
                                                                                                                            Unit:RMB
                           Name                                  Net asset at end of term             Net profit of the current termSubsidiaries, entities with special purpose, or entities on which the Company has controlling power through entrusted operation orleasing excluded from the consolidation range in the report period.
                                                                                                                            Unit:RMB
                                                                                                    Net profit from beginning of year
                           Name                                 Net asset at day of disposal
                                                                                                          to the date of disposalOther statements on entities included to or excluded from the consolidation range in the report period:5. Enterprise consolidation under same controlling at the end of current period.
                                                                                                                            Unit:RMB
                                                                                                                      Cash flow for
                           Recognition basis of                         Income from the        Net profit of the
                                                  Substantial                                                      business activities
    Entities taken over      entities under                          beginning of period period until the date
                                                  controller                                                        of the period until
                            common control                            to the date of merger       of merger
                                                                                                                   the date of mergerOther statements on merger of entities under common control:
                                                                          深圳中冠纺织印染股份有限公司 2012 年半年度报告全文6. Enterprise consolidation under non-same controlling within the reporting period.
                                                                                                                             Unit:RMB
         Entities taken over                     Amount of goodwill                           Accounting of goodwillOther statement on merger of entities under different control.:7. Sell stock right losing controlling right to decrease subsidiary company.
               Name of the subsidiaries                            Date of disposal                 Recognition of gain/lossOther statement on subsidiaries reduced for disposal of shares and lose of control power:8. Reverse acquisition occurred in the report period.
                                                                                                     Goodwill recognized in merger
                                  Basis for recognition of reverse
         The undertaker                                                Recognition of merger cost     or accounting basis of current
                                             acquisition
                                                                                                                 gain/lossOther statements on reverse Acquisition:9. Takeover occurred in the report period.
                                                                                                                         Unit :RMB
                Type OF takeover                             Main assets taken over                 Main liabilities taken over
         Takeover under common control                     Items               Amount               Items              Amount
         Takeover under different control                  Items               Amount               Items              AmountOther statement on takeover:10.Exchange rate of main accounts of overseas businesses.The company and the subsidiaries adopting Hong Kong dollars as their bookkeeping standardcurrencies, their financial statements shall be translated into the ones RMB; for the items in balancesheet, translation is done according to spot rate of balance sheet date; except for the items ofshareholders equity outside of the undistributed profits, for which the translation is done accordingto spot rate of balance sheet date (or actual rate), and for the items of incomes and expenses in the
                                                                           深圳中冠纺织印染股份有限公司 2012 年半年度报告全文income statement, the translation is done as per the approximate exchange rate of spot rat of balancesheet date. The translation differences of foreign currencies generated between the abovetranslations should be separately shown in the items of shareholders equity. Also, for the cash flowsstatement, the translation is done according to the approximate exchange rate of spot rate of cashflows date, and the amount of rate changes affecting on cash shall be individually shown in the cashflows statement. During the report period, the spot exchange rate of HKD against RMB as at Jan.1is 0.8107, the spot rate as at Dec.31 is 0.81522, and the approximate exchange rate of spot rate isadopted the current average rate of 0.81296.
         (VII). Notes of consolidated financial statements1. Currency funds
                                                                                                                                Unit:RMB
                                                  Year-end balance                               Year-beginning balance
              Items
                                                       Exchan                         Original        Exchange
                                  Original currency    ge rate       RMB              currency          rate              RMB
    Stock cash                                --              --               62,005        --              --                       13,567
    RMB                                     --              --               54,186        --              --                       10,547
                                                 9,591 0.81522              7,819             3,725      0.8107                    3,020
    Bank deposit                              --              --         52,976,207          --              --                52,631,239
    RMB                                     --              --         26,985,971          --              --                27,166,560
                                          30,550,427 0.81522         24,905,319         30,084,085       0.8107            24,389,168
                                               171,531 6.3249         1,084,917            170,692       6.3009                 1,075,511
    Other monetary capital                    --              --            628,216          --              --                      754,510
    RMB                                     --              --            628,216          --              --                      754,510
    Total                                    --              --         53,666,428          --              --                53,399,316Accounts under pledge, restriction, or saved abroad, which are attached with potential risks, shall be stated individually.:
         Funds in other currencies (RMB) mainly kept in the securities of the Group companies for the purchaseof new shares issued by drawing lots of money does not exist at the end of restrictions on the use ofmonetary funds.
         2.Financial assets for transaction
         (1) Financial assets for transaction
                                                                            深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
                                                                                                                               Unit:RMB
                             Items                                  Fair value at end of term          Fair value at beginning of termTransactional bond investment
    Transactional equity instruments                                                             55,390                               68,900Financial assets assigned to be accounted into currentgain/loss account at fair valueDeductive financial assetsHedge instrumentOther
    Total                                                                                        55,390                               68,900(2)Transactional financial assets with restriction to liquefy
                                                                                                                               Unit:RMB
                                                     Restriction for sale or other material restriction on
                      Items                                                                                   Amount at end of term
                                                                          liquefying(3)Statements on hedge instruments and related trading3. Bill receivable(1)Classification Bill receivable
                                                                                                                               Unit RMB
                     Classification                                 Year-end balance                     Year-beginning balanceTotal(2)Bill receivable under pledge
                                                                                                                               Unit:RMB
          Issuer                     Date of issue             Expired on                    Amount                    Remark
    Total                                    --                        --                                                    --Notes:
                                                                        深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(3)Bill transferred to account receivable for the issuer is not able to execute the liability , and notes endorsed toother parties but are not mature yet at the end of period.
                                                                                                                    Unit:RMB
          Issuer                  Date of issue            Expired on                   Amount              Remark
    Total                                   --                      --                                             --Notes:Bill endorsed to other parties but not due
                                                                                                                Unit: RMB
          Issuer                  Date of issue            Expired on                   Amount              Remark
    Total                                   --                      --                                             --Statements on commercial accepted notes already discounted or under pledge:4.Dividend receivable
                                                                                                                    Unit:RMB
           Items                Beginning of term      Increased this term        Decreased this term     End of termDividend receivable withage within 1 yearIn which:Dividend receivable withage over 1 year
    In which:                              --                      --                         --                  --TotalNotes:5.Interest receivable(1)Interest receivable
                                                                                                                    Unit:RMB
          Items               Beginning of term       Increased this term       Decreased this term      End of term
    Fixed deposit interest                       38,378                                             38,378                     0
          Total                              38,378                         0                   38,378                     0
                                                                            深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(2)Overdue interests
                                                                                                                              Unit:RMB
               Loan provided by                          Days overdue(day)                          Amount of interests overdue
                     Total                                         --(3)Statement on interest receivable6. Account receivable(1)Classification Account receivable :
                                                                                                                                 Unit :RMB
                                             Year-end balance                                       Year-beginning balance
                                  Book balance           Provision for bad debts          Book balance          Provision for bad debts
        Classification
                                           Proportion                   Proportion                Proportion                 Proportion
                              Amount                      Amount                      Amount                    Amount
                                            (%)                        (%)                     (%)                       (%)Receivables with majorindividual amount and baddebt provision providedindividually receivables
                              3,714,877        29.47%     2,970,165        79.95% 3,714,877          29.47%      2,970,165        79.95%with major individualamount and bad debtprovision providedindividuallyReceivables provided bad debt provision in groups
    Subtotal of group                      0            0%             0             0%          0             0%            0             0%Account receivable withminor individual amount
                              8,892,549        70.53%     8,892,549          100% 8,892,549          70.53%      8,892,549            100%but bad debt provision isprovided
                                                                                      12,607,42
    Total                        12,607,426        --        11,862,714         --                        --        11,862,714       --
                                                                                             6Category explanation of accounts receivable:Receivable accounts with large amount individually and bad debt provisions were provided.
                                                                                                                              Unit:RMB
                                                                         深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    Description of the receivable accounts          Book balance      Bad debt provision            Rate            Reason to provideHong Kong Victor Onward Co., Ltd.
                                                        1,606,281               861,569                  53.64% Aging long
    Carnival Index International Ltd                        1,098,549              1,098,549                   100% Aging long
    TAI YANG ENTERPRISE CO.,LTD                             1,010,047              1,010,047                   100% Aging long
                     Total                              3,714,877              2,970,165           --Other receivable account in Group on which bad debt provisions were provided on percentage basis:□Applicable √Not applicableReceivable accounts on which bad debt provisions are provided by other ways in the portfolio:□Applicable √Not applicableOther receivable account in Group on which bad debt provisions:□Applicable √Not applicableOther receivable accounts with minor amount but were provided had debt provisions individually at end of period.√Applicable □Not applicable
                                                                                                                          Unit:RMB
    Description Of other
                                   Book balance           Amount of bad debt               rate                      reason
       receivablesVEGA GARMENT
                                             770,071                    770,071                         100% Aging longCO.,LTDQuanzhou Ideal Bird
                                              80,518                     80,518                         100% Aging longGarment Co., Ltd.Tangshan lifeng Garment
                                              45,761                     45,761                         100% Aging longCo., Ltd.
    Fly Dragon International                     573,536                    573,536                         100% Aging long
    Grateful Textiles Co.,Ltd                    566,661                    566,661                         100% Aging long
    World Fabrica (Int'l) Ltd                    465,126                    465,126                         100% Aging longShenzhen Fangzhou
                                             446,352                    446,352                         100% Aging longTextiles Co., Ltd.Ezhou Xiangya Clothing
                                             351,500                    351,500                         100% Aging longCo., Ltd.Tak Shing Buying Office
                                             333,502                    333,502                         100% Aging longLed
    Starline Textile CO.Ltd.                     332,234                    332,234                         100% Aging longShenye Union (HK)
                                             299,354                    299,354                         100% Aging longCo.., Ltd.
    Panther Fabric Ltd.                          295,088                    295,088                         100% Aging long
                                                                               深圳中冠纺织印染股份有限公司 2012 年半年度报告全文Changshu Zhongjiang
    Clothing Import &                                270,134                      270,134                     100% Aging longExport Co., Ltd.Victor Onward
                                                 245,560                      245,560                     100% Aging longTextile(HK)Co., Ltd.Nissho Iwai HK Corp
                                                 215,229                      215,229                     100% Aging longLtd.
    Unimix Ltd.                                      192,891                      192,891                     100% Aging long
    Tai Hing Linings Co Ltd                          191,295                      191,295                     100% Aging longHuman Changpuan
                                                 185,981                      185,981                     100% Aging longGarmentNingbo Youngor
    Fukurmura Uniforms                               172,910                      172,910                     100% Aging longCo., Ltd.
            Total                             8,892,549                      8,892,549                    100%               --(2)Receivable accounts written back or retrieved in the report period
                                                                                                                                   Unit:RMB
                                                                                           Bad debt provision
    Description of the receivable Reason to write back          Basis of original bad                                  Amount written back or
                                                                                         provided before writing
            accounts                 or retrieve                debt provision                                            retrieved
                                                                                           back or retrieving
             Total                          --                          --                                                    --Receivable accounts with large amount, or minor amount but on which bad debt provisions are provided individually at end ofperiod:
    Description of the
                                 Book balance               Amount of bad debts          Providing rate(%)              Reason
    receivable account
            Total                                                                                  --                        --Remarks on receivable accounts with minor single amount but with greater risks after combining with accounts with similar risks:(3)Receivable accounts actually written off in the report period
                                                                                                                                   Unit:RMB
       Name of the        Property of the                                                        Reason of writing      Occurred under
                                                  Date of written off    Amount written off
        company          receivable account                                                              off           related relationship
                                                                            深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
        Total                    --                     --                                            --                       --Statement on writing off of receivable accounts:(4)Particulars about the receivable accounts due from shareholders with 5% or over of the Companys shares□Applicable √Not applicable(5)The front 5 units information of account receivable
                                                                                                                               Unit:RMB
                                Relation with the                                                                     Portion in total
          Name                                                    Amount                    Ages
                                      Company                                                                         receivables(%)Victor Onward
                             Non-Related parties                       1,606,281 Over 3 years                                       12.74%Textile(HK)Co., Ltd.Carnival Index
                             Non-Related parties                       1,098,549 Over 3 years                                       8.71%International LtdTAI YANG
                             Non-Related parties                       1,010,047 Over 3 years                                       8.01%ENTERPRISE CO.,LTD.VEGA GARMENT
                             Non-Related parties                           770,071 Over 3 years                                      6.11%CO.,LTDFly Dragon
                             Non-Related parties                           573,536 Over 3 years                                     4.55%International
          Total                          --                            5,058,484              --                                    40.12%(6)Account due from related parties
                                                                                                                               Unit:RMB
    Name of the company               Relation with the company                  Amount                    Portion in total receivables(%)
                                 The related parties controlled
    Shenye Union(HK)Co., Ltd.                                                                 299,354                                 2.37%
                                 the same Actual controller
                Total                            --                                         299,354                                 2.37%(7)Recognition of receivable accounts terminated
                                                                                                                               Unit:RMB
                   Items s                            Amount terminated                       Gain/loss related to termination
                                                                          深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
                    Total(8)For securitization on receivable accounts, please provide the amount of asset and liability formed bycontinuous involving
                                                                                                                      Unit:RMB
    Items                                                                               At end of termAssets:Subtotal of assetLiabilities:Subtotal of liabilities7.Other Account receivable
           (1)Category of other account receivable:
                                                                                                                      Unit :RMB
                                           Year-end balance                                  Year-beginning balance
                                Book balance               Book balance            Book balance               Book balance
        Classification
                                          Proportio                  Proportio               Proportion                  Proportio
                             Amount                      Amount                  Amount                    Amount
                                          n(%)                     n(%)                   (%)                      n(%)Receivables with majorindividual amount and
                              3,368,370     75.09%       3,368,370      100%     3,368,370      69.76%       3,368,370       100%bad debt provisionprovided individuallyReceivables provided bad debt provision in groups
    Subtotal of group               114,831      2.56%                                 457,264        9.47%Account receivable withminor individual amount
                              1,002,594     22.35%       1,002,594      100%     1,002,594      20.77%       1,002,594       100%but bad debt provision isprovided
    Total                         4,485,795      --          4,370,964      --       4,828,228       --          4,370,964       --Statement on categories of other receivable accounts:Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
                                                                       深圳中冠纺织印染股份有限公司 2012 年半年度报告全文√Applicable □Not applicable
                                                                                                                          Unit:RMB
    Description Of other
                                Book balance          Amount of bad debts               Rate                       Reason
        receivables
    Nanjing East Asia                        1,313,370                 1,313,370                      100% Aging longCCB.Guangdong
                                         1,080,000                 1,080,000                      100% Aging longShunde BranchChangzhou Dongfeng
    Textile Printing & dyeing                  975,000                   975,000                      100% Aging longEquipment Co., Ltd.
           Total                         3,368,370                 3,368,370              --                         --Other receivable account in Group on which bad debt provisions were provided on percentage basis:□Applicable √Not applicableReceivable accounts on which bad debt provisions are provided by other ways in the portfolio:□Applicable √Not applicableOther receivable account in Group on which bad debt provisions:□Applicable √Not applicableOther receivable accounts with minor amount but were provided had debt provisions individually at end of period.√Applicable □Not applicable
                                                                                                                          Unit:RMB
    Description Of other
                                Book balance          Amount of bad debts               Rate                       Reason
        receivablesHongKong Victor
                                           693,951                   693,951                      100% Aging longOnwardShanghai Huayinke
                                           180,000                   180,000                      100% Aging longTrade Industry Co., Ltd.
    Shenzhen Environmental                                                                                   Aging long
    Management          System                  35,000                    35,000                      100%Certification CenterShenzhen DesignInstitute of Ministry of
                                            30,000                    30,000                      100% Aging longMachinery IndustryShanghai Branch
    Other                                       63,643                    63,643                      100% Aging long
           Total                         1,002,594                 1,002,594                      100%               --
                                                                             深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(2)Other receivable accounts written back or retrieved in the report period
                                                                                                                                      Unit:RMB
                                                                                           Bad debt provision
    Description of other        Reason to write back        Basis of original bad                                   Amount written back or
                                                                                      provided before writing
         receivables                  or retrieve               debt provision                                                retried
                                                                                           back or retrieving
            Total                         --                          --                                                        --Receivable accounts with large amount, or minor amount but on which bad debt provisions are tested and provided individually atend of period
    Description of the
                                  Book balance               Amount of bad debt       Providing rate(%)                    Reason
    receivable accounts
          Total                                                                                    --                           --Statement on other account receivable with minor amount but with greater risks when combined with other receivable accounts withsimilar natures:(3)Other receivable accounts actually written off in the report period
                                                                                                                                      Unit:RMB
    Name of the                                                                                Reason of written      Occurred under related
                         Property of account   Date of written off Amount written off
      Company                                                                                            off                relationship
        Total                    --                     --                                               --                      --Statements on writing off of other receivable accounts:(4)Particulars about the other receivable accounts due from shareholders with 5% or over of the Companysshares in the report period.□Applicable √Not applicable(5)Natures or contents of other receivable accounts with large amount
                                                                                                                                      Unit:RMB
                                                                        Nature or content of the
                Name                           Amount                                                   Portion in total other receivables(%)
                                                                                 account
                                                                          深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
             Total                                                             --Notes:(6) The front 5 units information of Other account receivable
                                                                                                                       Unit:RMB
                               Relation with the                                                           Portion in total other
          Name                                                Amount                    Ages
                                  Company                                                                    receivables (%)
    Nanjing East Asia          Non-Related parties                      1,313,370    Over 3 years                                27.2%
    CCB.Guangdong                                                                    Over 3 years
                           Non-Related parties                      1,080,000                                                22.37%Shunde Branch
    Changzhou Dongfeng                                                               Over 3 years
    Textile Printing & dyeing Non-Related parties                          975,000                                               20.19%Equipment Co., Ltd.
    HongKong Victor                                                                  Over 3 years
                           Non-Related parties                         693,951                                               14.37%Onward
    Shanghai Huayinke                                                                Over 3 years
                           Non-Related parties                         180,000                                               3.73%Trade Industry Co., Ltd.
          Total                       --                            4,242,321             --                                 87.86%(7)Account receivable from Related parties
                                                                                                                      Unit: RMB
                                                                                                 Portion in total other receivables
            Name                  Relation with the Company                   Amount
                                                                                                                (%)
            Total                                --(8)Termination of other receivable accounts
                                                                                                                       Unit:RMB
                  Items                               Amount terminated                   Gain/loss related to termination
                                                                           深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
                     Total(9)For securitization on other receivable accounts, please provide the amount of asset and liability formed bycontinuous involving
                                                                                                                               Unit:RMB
    Items                                                                                At end of termAssets:Subtotal of assetsLiabilities:Subtotal of liabilities8.Prepayments(1)Prepayments age :
                                                                                                 Unit:RMB
                                         End of term                                            Beginning of term
        Age                                                     Proportion                                                 Proportion
                                    Amount                                                  Amount
                                                                 (%)                                                         (%)
    Within 1 year                                          19,693            100%                                 27,089             98.33%
    1-2 years                                                                                                           459           1.69%2-3 yearsOver 3 years
    Total                                                  19,693       --                                        27,548             --Notes to age of payment in advance::
    (2)    The front 5 units information of Prepayments
                                                                                                                               Unit:RMB
                                 Relation with the
         Unit name                                              Amount                    Time              Reason of not clearing
                                    company
    Other                        Non-Related parties                           19,693                         Not settlement
    Total                                   --                                 19,693          --                             --Statements on main receivers of prepayments:
                                                                    深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(3)Prepayment received by shareholding parties holding 5% or above of the Companys shares in the reportperiod.□Applicable √Not applicable(4)Statements on prepayments9.Inventory(1)Inventory types
                                                                                                                Unit :RMB
                                        Year-end balance                              Year-beginning balance
        Items           Book balance        Provision for   Book value     Book balance    Provision for bad   Book value
                                             bad debts                                          debts
    Raw materials                   2,030,716       1,868,259        162,457       2,030,716          1,868,259         162,457Processingproducts
    Stock goods                      635,916          635,916                        635,916            635,916Turnover materialsConsumablebiological assets
    Total                           2,666,632       2,504,175        162,457       2,666,632          2,504,175         162,457(2)Inventory Impairment provision
                                                                                                                Unit: RMB
                        Book balance at year Amount accounted in Amount Decreased in current period Book balance at period
         Type                                                                                                end
                                                                 Transferred back     Reselling
                            beginning          current period
    Raw materials                      1,868,259                                                                      1,868,259Processing products
    Stock goods                          635,916                                                                        635,916Turnover materialsConsumable biological
                                                                          深圳中冠纺织印染股份有限公司 2012 年半年度报告全文assets
    Total                                 2,504,175                                                                                  2,504,175(3)Condition of stock value decline
              Items                   Base of stock value decline    Reason of issuing back to stock       Proportion of issuing back
                                                                    value decline plan of this period amount to the stock balance at
                                                                                                                   this periodRaw materialsProcessing productsStock goodsTurnover materialsConsumable biological assetsStatement on inventories:The Company has been out of production, the closing inventories shall be writtendown after deducting the full amount provisions except the preservation materials.10.Other current assets
                                                                                                                             Unit:RMB
                      Items                                    End of term                               Beginning of term
                      Total                                                              0                                               0Statement on other current assets:11. Disposable financial asset(1)Sellable financial assets
                                                                                                                             Unit:RMB
                              Items                                 Fair value at end of term          Fair value at beginning of termAvailable-for-sale bonds
    Available-for-sale equity instruments                                                    626,024                                  703,055Other
    Total                                                                                    626,024                                  703,055The amount of investment held to mature recategorized to sellable financial assets was RMB 0 , Account for 0% of total investment
                                                                           深圳中冠纺织印染股份有限公司 2012 年半年度报告全文held to mature.Statement on sellable financial assets:
    The equity tools for sale are the shares held by the subsidiary of the company Hong Kong Victor Onward because they are not tobe cashed in a short term.(2)Long-germ liability investment in the sellable financial assets
                                                                                                                                 Unit:RMB
                                                                                                                 Accumulated
                                                                             Beginning         Interest of the        interest   Ending
    Bond items Type of bond        Face value    Initial costs   Expired on
                                                                                 balance           period        received or     balance
                                                                                                                  receivable
    Total                  --            --                            --Statement on long-term liability investment in the sellable financial assets:12.Investment held to mature(1)Investment held to mature
                                                                                                                                 Unit:RMB
                     Items s                     Balance of book value at end of term          Balance of book value at beginning of term
                      Total                                                                0                                                0Statement on investment held to mature:(2)Investment held to mature disposed in the report period before mature
                                                                                                                                 Unit:RMB
                                                                                   Percentage in the total investment before disposed
    Items                                                  Amount
                                                                                                            (%)
                   Total                                                                                         --Statement on investment held to mature disposed in the report period before mature:
                                                                                       深圳中冠纺织印染股份有限公司 2012 年半年度报告全文13.Long-term receivables
                                                                                                                                                       Unit:RMB
                   Categories                                      End of term                                           Beginning of termFinanced rent
    Incl: un-realized financial gainsSales of goods in stallmentsProviding of services in stallmentsOther
    Total                                                                                                0                                                             014. Investment to joint venture and Affiliated Enterprises
                                                                                                                                                       Unit:RMB
                                                                                               Company
                                                                                               vote right
                                                                                   Company                                                       Total
                                                                                               percentag
                                                   Legal                           sharehold                Ending    Ending                    business
                           Corporati Registrati               Business Registere                e in the                            Ending                 Current
          Name                                    Represent                           ing                    total     total                    revenues
                            on Type   on place                Nature   d Capital               invested                            net assets              net profit
                                                    ative                          percentag                assets   liabilities                 at this
                                                                                               unittion
                                                                                    e (%)                                                        period
                                                                                                of units
                                                                                                  (%)I. Joint ventureII. Affiliated enterpriseStatements on material diversity in accounting policies, estimations adopted by the Company and the affiliates:15. Long term share equity investment.
                                                                                                                                                  深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(1)Details of long-term equity investment
                                                                                                                                                                                                     Unit:RMB
                                                                                                                                             Explaination of
                                                                                                                                            diffirence between
                                                                                                    Shareholding          Voting right        shareholding
                 Accounting   Initial investment                                                                                                                                                     Cash
        Name                                       Original balance   change      Ending Balance   proportion in the    proportion in the    proportion and      Devalue       Current devalue
                  method            cost                                                                                                                                                             bonus
                                                                                                       investee             investee           voting right
                                                                                                                                              proportion in
                                                                                                                                                 investeeZhejiang UnionHangzhou Bay  Equity
                                   58,588,403          63,192,614       565,997      63,758,611                   25%                  25% None                            0                     0            0Chuangye Co., methodLtd.
    Total                --            58,588,403          63,192,614       565,997      63,758,611           --                   --                   --                     0                     0            0
                                                                          深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(2)Constrains on the ability to transfer capital to invested entities
                                                                                                                             Unit:RMB
    Constrains on the ability to transfer capital                                                      Accumulated investment loss not
                                                         Causation of constrain
        to long-term invested entities                                                                        recognizedStatements on long-term equity investment:
       Zhejiang Union Hangzhou bay Chuangye Co., Ltd. (hereinafter named“Hangzhoubay”) current change including current profitconfirmed by equity method is RMB1,670,495.16.Investment real estate(1)Measured by the cost of investment in real estate√Applicable □Not applicable
                                                                                                                             Unit:RMB
           Items            Book amount at year       Increase at this period       Decrease at this period   Book balance in year -end
                                  beginning
                                         96,912,003                             0                  108,308                   97,020,3111. Total original price
                                         96,912,003                             0                  108,308                   97,020,3111.House, Building
                                                  0                             0                         0                               02.Land use right
    II.Total    accumulateddepreciation
                                         62,538,552                 1,630,793                             0                  64,169,345accumulatedamortization
                                         62,538,552                 1,630,793                                                64,169,3451.House, Building2.Land use right
    III.    Total      book
                                         34,373,451                             0                         0                  32,850,966
    value                of
    investment         real
                                                                      深圳中冠纺织印染股份有限公司 2012 年半年度报告全文estate
                                       34,373,451                        0                        0                  32,850,9661.House, Building2.Land use right
    IV.       Total      ofaccumulated
    provision           for
                                                  0                      0                        0                             0
    devaluation          of
    investment          realestate.
                                                  0                                                                             01.House, Building
                                                  0                                                                             02.Land use rightV. Total book value of
                                       34,373,451                        0                        0                  32,850,966investment real estate
                                       34,373,451                        0                        0                  32,850,9661.House, Building
                                                  0                      0                        0                             02.Land use right
                                                                                                                    Unit :RMB
                                                                                               This period
    Current amount of depreciation and amortization                                                                       1,630,793
    Investment real estate in this period the amount of impairment                                                                  0(2)Investment property on fair value basis□Applicable √Not applicableStatements the investment properties which have changed of measurement basis and those which are not licensed yet, statementthereason and expected completion date.17. Fixed assets(1)Fixed assets
                                                                                                                   Unit:RMB
                                                                      深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
            Items              Book amount at           Increase at this period             Decrease at this     Book balance in
                               year beginning                                                   period              year -end
    1.    Total         original
                                   161,061,029                                     83,272           1,440,301         159,704,000price
                                     47,972,628                                                       330,737          47,641,891Including: House , Building
                                     99,308,680                                                       684,662          98,624,018Machinery equipment
                                      4,593,873                                                       279,953               4,313,920Transportations
    Office Equipment and other            9,185,848                                    83,272             144,949               9,124,171
                               Book balance at    Current term           Current term       Decrease at this     Book balance in
               --
                               year beginning        new extra               provision          period              year -endII. Total of accumulative
                                    111,375,689                  0                 97,312           1,237,211         110,041,166depreciation
                                     26,281,961                                    45,144             175,600          26,061,217Including: House , Building
                                     75,008,036                                                       758,838          74,249,198Machinery equipment
                                      4,052,772                                    46,040             172,377               3,834,355Transportations
    Office Equipment and other            6,032,920                                     6,128             130,396               5,896,396
                               Book balance at                                                                  Book balance in
               --                                                             --
                               year beginning                                                                   year -endIII. Total book value of
                                     49,685,340                               --                                       49,662,834Fixed assets
                                     21,690,667                               --                                       21,580,674Including: House , Building
                                     24,300,644                               --                                       24,374,820Machinery equipment
                                        541,101                               --                                             479,565Transportations
    Office Equipment and other            3,152,928                               --                                            3,227,775IV. Total of Devalued
                                     37,614,934                               --                                       37,614,934Provision
                                     15,466,004                               --                                       15,466,004Including: House , Building
                                     19,407,245                               --                                       19,407,245Machinery equipment
                                                                         深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
                                            50,276                              --                                             50,276Transportations
    Office Equipment and other             2,691,409                                --                                         2,691,409V. Total book value of
                                      12,070,406                                --                                       12,047,900Fixed assets
                                       6,224,663                                --                                         6,114,670Including: House , Building
                                       4,893,399                                --                                         4,967,575Machinery equipment
                                           490,825                              --                                          429,289Transportations
    Office Equipment and other                 461,519                              --                                          536,366Current depreciation is RMB 97,312 . The issue of fixed assets transferred from construction in progress original price is RMB 0.(2)Fixed assets temporarily in idle status
                                                                                                                          Unit:RMB
                                                 Accumulated            Impairment
        Items          Original book value                                                  Net book value             Notes
                                                 depreciation            provisionIncluding: House ,
                                44,541,973            25,173,561             15,466,005              3,902,407BuildingMachinery
                                98,998,752            74,858,652             19,471,657              4,668,443equipment
                                 2,731,156             2,458,006                       0              273,150TransportationsOffice Equipment
                                 7,461,982             4,758,253              2,504,293               199,436and other(3)Fixed assets leased by finance□Applicable √Not applicable(4)Fixed assets leased out on finance.□Applicable √Not applicable(5)Fixed assets held for sale at end of period
                                                                                                                          Unit:RMB
                                                                                     Predicted disposal
             Items                  Book value                  Fair value                                   Predicted disposal date
                                                                                           expense
                                                                    深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(6)Fixed asset not licensed yet
                   Item                             Reason for not granted                      Expected date of grantStatements of fixed assets:18.Project under construction(1)
                                                                                                                     Unit:RMB
                                              Year-end balance                             Year-beginning balance
                                 Book         Provision for Book Net value        Book         Provision for Book Net value
                                balance        devaluation                       balance       devaluation
                  Items
    Total                                     0                 0                0             0                 0              0
                                                                                                                                                       深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(2)Significant changes in projects of construction-in-progress
                                                                                                                                                                                                                   Unit:RMB
                                                                                                                                                        Thereinto:
                                                                                                           Project                  Accumulated
                                 Amount at                                                                                                             amount       of       Current Interest
                                                 Increase at       Transferred to                        investment      Project     amount of
                                                                                                                                                         Current
                                                                                                                                                                                                                 Amount at year
    Name          Budget           year                                               Other reduction                                                                        capitalization    Capital source
                                                 this period        fixed assets                         proportion of   progress     interest                                                                        end
                                 beginning                                                                                                               Interest                  rate
                                                                                                          the budget                 capitalized
                                                                                                                                                        capitalized
    Total                        0               0                 0                   0                0         --            --                     0                     0          --                --                      0Statements on change of construction-in-progress:
                                                                                 深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(3)Impairment Provisions of Construction in progress
                                                                                                                                       Unit:RMB
        Items              Beginning of term        Increased this term      Decreased this term       End of term            Reason to provide
    Total                                          0                         0                       0                        0            --(4)Major projects under construction
                    Items                                      Project progress                                          Notes(5)Statement on projects under construction19.Engineering Material
                                                                                                                                       Unit:RMB
                   Items                           Beginning of term Increased this term Decreased this term                     End of term
    Total                                                                0                       0                   0                                0Statement on project material:20.Liquidation of fixed assets
                                                                                                                                       Unit:RMB
                   Items                       Beginning book value                 Eng book value               Reason of liquidation
    Total                                                                        0                           0                       --Progress of fixed assets turn to be liquidated for over one year:21.Production biological assets(1)On costs□Applicable √Not applicable(2)On fair value□Applicable √Not applicable22.Petrolum assets
                                                                                                                                       Unit:RMB
                               Beginning balance of                                                                      End balance of book
           Items                                    Increased this term                  Decreased this term
                               book value                                                                                value1. Total of original book
                                                         0                           0                               0                            0value1.Rights on provedminefield
                                                                     深圳中冠纺织印染股份有限公司 2012 年半年度报告全文2.Rights on unprovedminefield3.Wels and facilitiesII.Total of accumulative
                                                 0                      0                         0                      0
    depreciation1.Rights on provedminefield2.Wels and facilitiesIII.Total Of accumulative
    impairment provision on                        0                      0                         0                      0
    petroleum assets1.Rights on provedminefield2.Rights on unprovedminefield3.Wels and facilitiesIV.Total of book value of
                                                 0                      0                         0                      0petroleum assets1.Rights on provedminefield2.Rights on unprovedminefield3.Wels and facilitiesStatements on petroleum assets:23. Intangible assets(1)Intangible assets
                                                                                                              Unit:RMB
           Items            Book Balance in          Increase at this                                 Book Balance in
                                                                            Decrease at this period
                                   year-begin             period                                         year-end
                                        13,023,720                      0                        0            13,023,7201. Total original price
                                        12,356,137                                                            12,356,137
    Land Use right
    Software                                  667,583                                                                   667,583II. Total amount of
                                        10,895,491                 20,152                        0            10,915,643accumulated
                                        10,455,068                 20,152                                     10,475,220
    Land Use right
    Software                                  440,423                                                                   440,423III. Book value of
                                         2,128,229                      0                        0             2,108,077intangible assets
                                         1,901,069                                                             1,880,917
    Land Use right
    Software                                  227,160                                                                   227,160IV.Total value of
    provision for                             227,160                       0                        0                  227,160impairment
                                                                            深圳中冠纺织印染股份有限公司 2012 年半年度报告全文
    Land Use right
    Software                                  227,160                                                                                             227,160IV.Total value of
    provision for                           1,901,069                                   0                                  0                 1,880,917impairment
                                        1,901,069                                                                                        1,880,917
    Land Use right
    Software                                         0                                                                                                 0The amortization amount is RMB 20,152.
    (2)The current expenditure on non-development projects
                                                                                                                                        Unit:RMB
                                                                                        Decrease at this period
                          Balance in           Increase at this           Accounted into
          Items                                                                                        Recognized as           Balance in year-end
                          year-begin               period                 current income
                                                                                                      intangible asset
                                                                              account
    Total                                    0                          0                            0                         0                       0R & D expenses of the current period accounted for % of the total coast of R&D.Intangible asset formed by internal R&D of the period accounted for % of the total book value of intangible assetsStatement on R&D projects, including single account over RMB 1 million basing on evaluation results. Please provide the evaluationbody and basis of evaluation.(3)Uncertificated intangible assets24. Goodwill
                                                                                                                                        Unit:RMB
    Name of the investee or the         Balance in            Increase at this           Decrease at this        Book Balance in Ending devalue
    matter of forming Goodwill          year-begin                period                      period                year-end           provisionFor the goodwill formed
    from holding shares of                       5,099,624                                                                 5,099,624Nanhua Company,
    Total                                        5,099,624                          0                          0           5,099,624                   0Statement of basis for impairment testing and provision of goodwill:
        25. Long-term amortization expenses
                                                                                                                                      Unit :RMB
        Items                                                   Amount of               Other Decrease         Balance in year         Other
                      Balance in        Increase at
                                                             amortization at                                        end
                      year-begin        this period
                                                              current period
    Total                              0                     0                      0                        0                       0       --Statement on long-term amortizable expenses:
                                                                        深圳中冠纺织印染股份有限公司 2012 年半年度报告全文26. Deferred income tax assets/Deferred income tax liabilities(1)Recognized deferred income tax assets and deferred income tax liabilities√Applicable □Not applicableRecognized deferred income tax assets and deferred income tax liabilities
                                                                                                                         Unit:RMB
                       Items                                   Year-end balance                       Year-beginning balanceDeferred income tax assets:Assets depreciation reservesStart-up costsDeductible lossSubtotalDeferred income tax liability:Trading of financial instruments and Derivativefinancial instrumentsIncrease and decrease of fair value ofavailable-for-sale financial assetsAssessed tax-free periods of time caused by
                                                                                     812,841                                   808,335differences in income
    Subtotal                                                                             812,841                                   808,335Details of taxable differences and deductible differencesUnit:RMB
                       Items                                    At end of term                         At beginning of termDeductible provisional differencesNeutralizable lossesTotalDeductible losses of the un-recognized deferred income tax asset will expire in the following years
                                                                                                                         Unit:RMB
           Year                      At end of term           At beginning of term                         Notes
    Total                                                                                                        --Details of taxable differences and deductible differencesUnit:RMB
                                                                            Amount of temporary differences
                        Items
                                                                  At end of term                        At beginning of termDifferences in taxable items
    Assess the value of assets                                                           4,926,309                            4,899,000
    Subtotal                                                                             4,926,309                            4,899,000Deductible difference projectSubtotal
                                                                        深圳中冠纺织印染股份有限公司 2012 年半年度报告全文(2)Deferred income tax assets and liabilities are presented as net amount after neutralization√Applicable □Not applicableStatement on deferred income tax assets and liabilities:27.Detail of asset impairment provision
                                                                                                                    Unit: RMB
                                                                                Decrease at this period
                                  Balance of book                          Withdrawal amount   Transfer in       Balance of book
                                                        Increase at this         in this                         value at end of
            Items                value at beginning                                                                   term
                                                             period
                                      of term1. Bad debt provision2 Inventory impairment
                                          2,504,175                                                                    2,504,175provision3. Disposable financial assetimpairment provision4. Investment equity hold tillexpiring impairmentprovision5. Long-term equity
    investment impairment                                                  0                                                      0provision6. Property investment
                                                    0                  0                                                      0impairment provision7.Fixed asset impairment
                                         37,614,934                                                                  37,614,934provision8. Project material impairmentprovision9. Construction in process
                                                    0                  0                                                      0impairment provision10 Production biologicalmaterial asset impairmentprovision
    Incl. Mature productionbiological material assetimpairment provision11. Gas & oil asset
                                                    0                  0                                                      0impairment provision12. Intangible asset
                                             227,160                   0                                                227,160impairment provision13. Goodwill impairment
                                                                                                                              0provision14.Other
    Total                                    56,579,947                    0                   0                 0       56,579,947Statement on details of asset impairment:28.Other non-current assets
                                                                                                                     Unit:RMB
                        Items                                  At end of term                   At beginning of term
    Total                                                                                  0                                      0
                                                                           深圳中冠纺织印染股份有限公司 2012 年半年度报告全文Statement on other non-recurring assets29. Short-term borrowings(1)Categories of short-term loans
                                                                                                                                Unit:RMB
                       Items                                     At end of term                          At beginning of termLoan by pledgePledged loanGuarantee loanCredit loan
    Total                                                                                       0                                           0Statement on categories of short-term loans:(2)Short-term loans expired but not repaid
                                                                                                                                Unit:RMB
    Loan provided by      Amount of loan      Interest rate       Usage of loan           Reason of overdue      Scheduled repaying date
    Total                                  0            --                --                        --                         --Repaid in post-balance-sheet period.Statement on short-term loans, including due but extended. Please provide the extending conditions and extended expiration date.30.Transactional financial liabilities