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神州长城(000018)公告正文

*ST中冠B:2013年半年度报告(英文版)

公告日期:2013-08-22

                                深圳中冠纺织印染股份有限公司 2013 半年度报告全文Shenzhen Victor Onward Textile Industrial Co., Ltd.
               The Semiannual Report 2013
                     August 2013
                                                                 深圳中冠纺织印染股份有限公司 2013 半年度报告全文
             I. Important Notice, Table of Contents and DefinitionsThe Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Companyhereby guarantees that there are no misstatement, misleading representation or important omissions in this reportand shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.All the directors attended the board meeting for reviewing the Annual Report.The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.Mr.Hu Yongfeng, The Company leader, Mr. Zhang Jinliang, Chief financial officer and the Mr..Ren Changzheng,the person in charge of the accounting department (the person in charge of the accounting )hereby confirm theauthenticity and completeness of the financial report enclosed in this semi-annual report.
                                                               深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                         Table of Contents2013 Semi-Annual ReportI..Important Notice, Table of contents and DefinitionsII. Basic Information of the CompanyIII. Summary of Accounting Highlights and Business HighlightsIV. Report of the Board of DirectorsV. Important EventsVI. Change of share capital and shareholding of Principal ShareholdersVII. Information about Directors, Supervisors and Senior ExecutivesVIII. Financial ReportIX. Documents available for inspection
                                                                 深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                                Definition
                                       Refers
                 Terms to be defined                                           Definition
                                         to
                                       Refers
    Company/The Company/                            Shenzhen Victor Onward Textile Industrial Co., Ltd.
                                         to
                                       Refers
    Company Law                                     Company Law of the People’s Republic of China
                                         to
                                       Refers
    Securities Law                                  Securities Law of the People’s Republic of China
                                         to
                                       Refers
    “CSRC”                                        China Securities Regulatory Commission
                                         to
                                                                            深圳中冠纺织印染股份有限公司 2013 半年度报告全文II. Basic Information of the CompanyI. Company Information
                                * ST Shenzhen Victor Onward A, * ST
    Stock abbreviation                                                     Stock code:                000018、200018
                                Shenzhen Victor Onward B
    Stock exchange for listing:    Shenzhen Stock Exchange
    Name in Chinese                 深圳中冠纺织印染股份有限公司Chinese Abbreviation (If any) 中冠
    English name (If any)           Shenzhen Victor Onward Textile Industrial Co., Ltd
    English abbreviation (If any)   VICTOR ONWARD
    Legal Representative            Hu YongfengII. Contact person and contact manner
                                                          Board secretary                  Securities affairs Representative
    Name                                        Zhang Jinliang                             Wu Xia
                                            Room 1308, Hualiang Building, No.2008 Room 1308, Hualiang Building, No.2008Contact address
                                            Shennan Zhong Road, Shenzhen               Shennan Zhong Road, Shenzhen
    Tel                                         (755)83668425                            (755)83667895
    Fax                                         (755)83668427                            (755)83668427
    E-mail                                      zhangjl@udcgroup.com                       wux@udcgroup.comIII. Others1. Way to contact the CompanyDid any change occur to the registered address, office address and their postal codes, website address and emailaddress of the Company during the reporting period?√ Applicable □ Not applicable
    Registered address                                   26 Kuipeng Road, Kuiyong Town, Longgang District, Shenzhen
    Postal code of the Registered Address                518119
    Office Address                                       26 Kuipeng Road, Kuiyong Town, Longgang District, Shenzhen
    Postal code of the office address                    518119
    Internet Web Site                                    http://www.udcgroup.com
    E-mail                                               szvo@chinaszvo.com
                                                                 深圳中冠纺织印染股份有限公司 2013 半年度报告全文2. About information disclosure and where this report is placedDid any change occur to information disclosure media and where this report is placed during the reporting period?□ Applicable √ Not applicableThe newspapers designated by the Company for information disclosure, the website designated by CSRC fordisclosing this report and the location where this report is placed did not change during the reporting period. Thesaid information can be found in the 2012 Annual Report.3.Change of the registered informationDid any change occur to the registered information during the reporting period?□ Applicable √Not applicableThe Registration date and place of the Company, its business license No., Taxation registration No. andorganizational code did notchange during the reporting period. The said information can be found in the 2012annual report.4.Other relevant informationDid any change occur to other relevant information during the reporting period?√ Applicable □ Not applicableThe Company no longer renewed the engagement of Shine Wing Certified Public Accountants (special ordinarypartnership) as the auditing body for the audit and internal control of the Company for 2013. According to theprovisions of the Company's Work System of Choosing and Engaging Certified Public Accountants, the Companyengaged Dahua Certified Public Accountants (special ordinary partnership) as the auditing body for audit andinternal control for 2013. The annual auditing fee is RMB 0.45 million (including traveling expenses). Refer to No.2013-0640 announcement of the Company published at www.cninfo.com.cn on June 27, 2013 for details.(2013-0640)
                                                                                   深圳中冠纺织印染股份有限公司 2013 半年度报告全文III. Summary of Accounting Highlights and Business Highlights
    I.   Major accounting data and /Financial indicatorsMay the Company make retroactive adjustment or restatement of the accounting data of the previous years due tochange of the accounting policy and correction of accounting errors.□ Yes √ No
                                                      Reporting period              Same period of last year         YoY+/-(%)
    Operating income(RMB)                                          4,990,626.00                    5,019,787.00                      -0.58%Net profit attributable to the shareholders
                                                                -4,123,606.00                   -4,187,136.00                      -1.52%of the listed company(RMB)Net profit after deducting of non-recurring
    gain/loss attributable to the shareholders of                   -1,708,492.00                   -1,245,706.00                     37.15%listed company(RMB)Cash flow generated by business operation,
                                                                 1,949,440.00                      165,989.00                  1,074.44%net(RMB)
    Basic earning per share(RMB/Share)                                         -0.02                         -0.02                           0%
    Diluted gains per share(RMB/Share)                                         -0.02                         -0.02                           0%
    Net asset earning ratio(%)                                           -3.53%                          -3.58%                      0.05%
                                                     As at the end of the
                                                                                   As at the end of last year        YoY+/-(%)
                                                        reporting period
    Gross assets(RMB)                                           164,879,572.00                   172,002,557.00                      -4.14%Shareholders’ equity attributable to
                                                              114,119,534.00                   118,852,391.00                      -3.98%shareholders of the listed company(RMB)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.
                                                                                                                               Unit:RMB
                                   Net profit attributable to the shareholders of the       Net Assets attributable to the shareholders of
                                                      listed company                        the listed company
                                        Amount in the         Amount in the previous         End of the reporting     Beginning of the
                                        reporting period               period                       period            reporting period
    According to CAS                             -4,123,606.00                  -4,187,136.00           114,119,534.00         118,852,391.00Items and amount adjusted according to CAS and IAS
    Switch back the part of Hong                    267,910.00                      55,329.00            -4,729,270.00          -5,298,751.00
                                                                              深圳中冠纺织印染股份有限公司 2013 半年度报告全文Kong house propertyassessment in accordance withIASPursuant to overseas
                                          -3,855,696.00                -4,131,807.00             109,390,264.00              113,553,640.00accounting standards2. Difference in Net profit and net Assets in the Financial Report as Disclosed Respectively according to theAccounting standards Outside Mainland China and the Chinese Accounting Standards.
                                                                                                                                  Unit:RMB
                                  Net profit attributable to the shareholders of the       Net Assets attributable to the shareholders of
                                                   listed company                                        the listed company
                                    Amount in the          Amount in the previous          End of the reporting      Beginning of the
                                   reporting period                 period                        period              reporting period
    According to CAS                          -4,123,606.00                -4,187,136.00             114,119,534.00              118,852,391.00Items and amount adjusted according to CAS and IASSwitch back the part of HongKong house property
                                            267,910.00                       55,329.00             -4,729,270.00              -5,298,751.00assessment in accordance withIASPursuant to overseas
                                          -3,855,696.00                -4,131,807.00             109,390,264.00              113,553,640.00accounting standards3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.The 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
                                                                                                                                  Unit:RMB
                                                                                 Amount                               NotesNon-current asset disposal gain/loss(including the write-off part
                                                                                            -15,114.00for which assets impairment provision is made)Other non-operating income and expenditure beside for the above
                                                                                         -2,400,000.00items
    Total                                                                                    -2,415,114.00                  --For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 oninformation disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
                                                               深圳中冠纺织印染股份有限公司 2013 半年度报告全文its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosurefor Companies offering their securities to the public-non-recurring Gains and losses which have been defined asrecurring gains and losses, it is necessary to explain the reason.□ Applicable√ Not applicable
                                                                        深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                  IV. Report of the Board of DirectorsI. General
    1. Business highlights
    In the report period, the printing and dyeing mill of the Company in Shenzhen continued production suspensewhile the parent company and five subsidiaries continued the suspension of printing and dyeing business due tothe production suspense of the printing and dyeing mill. The parent company, Nanhua Company and Hong KongCompany maintained daily operation through property lease. The other three subsidiaries had suspended business.The Company planned to invest in the joint venture project of Nanjing East Asia Textile Printing and Dyeing Co.,Ltd. with partial machinery and equipment. Due to change of foundation of joint venture and prospect of theindustry, the capital increase was not completed. In the report year, the income from house rent was the main partof net inflow of cash and the source of income from main operation.
    2. The risks that the Company is facing and countermeasures
    Production suspense brought significant influence on the production and operating activities and continuousdevelopment of the Company. 2The audited net profits of the Company for two consecutive fiscal years (i.e., 2011and 2012) were both negative. According to relevant regulations including Stock Listing Rules of Shenzhen StockExchange, Shenzhen Stock Exchange enforced special treatment ("delisting risk caution") of the stocks of theCompany from April 24, 2013.
    According to Stock Listing Rules of Shenzhen Stock Exchange, the listing of the stocks of the Company willbe suspended from the day of announcement of 2013 annual report if its audited net profit for 2013 is stillnegative. In case of failure to reverse loss according to the annual report for the latest period disclosed withinstatutory time limit, the stocks of the Company will face the risk of termination of listing.
      In order to try to have the caution of delisting risk revoked, the Company will make all efforts to enhanceoperating efficiency and increase return through various measures and take "reversing loss into profit" as thepriority target of production and operation for the year in 2013.II. Analysis on principal Business1.GeneralIn the report period, the textile, printing and dyeing business of the head office and controlled subsidiaries of theCompany did not recover and continued to be suspended for rectification. The Company leased its idle propertiesand earned rental income of RMB 4.99 million.YoY Change of major financial data:
                                                                                                                    Unit:RMB
                            Reporting period        Same period of last year      YoY+/-(%)            Main reasons for change
    Operating revenues                   4,990,626.00              5,019,787.00                   -0.58%
    Operating cost                       2,073,313.00              2,199,834.00                   -5.75%
    Administrative expenses              4,050,058.00              4,358,499.00                   -7.08%
                                                                           深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                                                                                             Influence of exchange
    Financial expenses                         273,998.00               -47,525.00                   -676.53%
                                                                                                             rate
                                                                                                             Acceptance of banker'sNet cash flows from
                                         1,949,440.00              165,989.00                   1,074.44% acceptance bills of prioroperating activities
                                                                                                             periods
                                                                                                             Receipt of the proceeds
    Net cash flows from                                                                                          of disposal of machinery
                                         5,024,937.00               -31,431.00                  -16,087.2%
    investing activities                                                                                         and equipment in
                                                                                                             advance
    Net cash flows from                                                                                          Payment of loan
                                        -10,000,000.00
    financing activities                                                                                         principal to Union GroupNet increase in cash and
                                         -3,458,795.00             267,112.00                   -1,394.89%cash equivalentsMajor changes to the profit structure or sources of the Company during the reporting period.□Applicable √ Not applicableNo major changes occurred to the profit structure or sources of the Company during the reporting period.Reporting period progress of the future development planning in the disclosed documents of the Company such asshare-soliciting prospectuses, offering prospectuses, asset reorganization reports, etc:□Applicable √ Not applicableThe Company did not mention any future planning for the reporting period in its disclosed documents such asshare-soliciting prospectuses, offering prospectuses, asset reorganization reports, etc.Review the progress of the previously disclosed business plan in the reporting period.
    As the plan of investing in Nanjing East Asia Textile Printing and Dyeing Co., Ltd. with part of machinery andequipment was not fulfilled, part of the Company's assets have been in idle status for long time since productionsuspense for rectification. At present, the investment project (Nanjing East Asia Textile Printing and Dyeing Co.,Ltd.) has entered litigation procedure. There will be no possibility of investment completion. To invigorate assetsand recover funds, the Company planned to dispose of fixed assets (machinery and equipment) and parts. In thereport period, it collected proceeds of RMB 5.05 million from such disposal.III.Breakdown of main business
                                                                            Increase/decrease        Increase          Increase/decrease
                         Operating                          Gross profit      of operating         /decrease of         of gross profit
                                         Operating costs
                         revenues                             rate(%)       revenues over last operating costs         rate over last year
                                                                                 year(%)      over last year(%)         (%)Classification of Industry
    Leasing Industry         4,990,626.00        2,073,313.00          58.46%             -0.58%                 -5.75%                1.71%Classification of products
    Lease                    4,990,626.00        2,073,313.00          58.46%             -0.58%                 -5.75%                1.71%Classification of Area
                                                                                深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    China                     4,119,034.00      1,498,006.00               63.63%                -0.96%                  -6.44%           3.41%
    Hong Kong                  871,592.00           575,307.00             33.99%                 2.35%                  -3.31%           1.03%IV. Analysis on investment Status1. External Equity investment(1)External investment
                                                          External investment
    Investment amount (January-June               Investment Amount (January-June
                                                                                                            Change rate(%)
               2013)(RMB)                                      2012)(RMB)
                                         0.00                                             0.00                                          0%
                                                         Particulars of investees
                  Name                                       Principal business                  Proportion in the investees’ equity(%)
    Zhejiang Union Hangzhou Bay
                                                               Real estate                                                             25%
        Chuangye Co., Ltd.(2)Holding of the equity in financial enterprises2. Analysis to main subsidiaries and shareholding companiesParticulars about main subsidiaries and shareholding companies
                                                                                                                                 Unit:RMB
                                           Leading                        Total                                      Operating
    Company      Company         Sectors                   Registered                      Net assets     Tumover                 Net Profit
                                           products                   assets(RMB                                       profit
    Name          type       engaged in                    capital                        (RMB)          (RMB)                   (RMB)
                                         and services                       )                                         (RMB)Hong Kong
    Victor                      Textile      Textile        2,400,002     112,829,365 43,308,284.
             Subsidiary                                                                                875,656.00 -129,466.00 -127,537.00
    Onward                      industry     trade          (HKD)                   .00            00Co.Ltd
                                         Textile
    Nanhua                      Textile                     85,494,700     28,239,070. -18,089,476 3,206,500.0
             Subsidiary                  Printing and                                                                -127,217.00 -139,333.00
    Company                     industry                    (HKD)                   00             .00             0
                                         dyeing
                                                                             深圳中冠纺织印染股份有限公司 2013 半年度报告全文V. Prediction of business performance for Jan-Sept 2013.Estimation of accumulative net profit from the beginning of the year to the end of next report period to be lossprobably or the warning of its material change compared with the corresponding period of the last year andexplanation of reason.√ Applicable □Not applicableForenotice of earning :LossesType of data filet for the prediction
                                  Year beginning to end of next Same period of
                                                                                                Increase or decrease%
                                         report period            the previous yearEstimated amount of
    accumulative net                         -200 --              0               -615 --                        -100% --       -67.48%profit(RMB’0000)Basic earnings per shares
                                        -0.01 --              0              -0.04 --                        -100% --          -75%(Yuan/share)
                                 Due to loss of real estate projects of Zhejiang Union Hangzhou Bay Ventures Co., Ltd. accounted foNotes to forenotice of
                                 r on equity basis, the accumulative net profit for the period from January 2012 to September 2013 isearnings
                                  estimated to be loss and about RMB-2 million to RMB-0.VI. Explanation from the Board for “ Qualified Opinion” of last year’s
       1.Basic information
    Shine Wing Certified Public Accountants issued unqualified auditor's report with paragraph of emphasizedmatters for the Company's financial statements for 2012 Basic information of emphasized matters: Since March2007, Shenzhen Victor Onward Textile Industrial Co., Ltd. stopped production and dismissed most of workers.And most subsidiaries of the company had stopped production and it maintained daily operation by house leasing.,but its sustainable operation ability is still uncertain.
      (II) Basic opinions of certified public accountants on such matter:
    Shine Wing Certified Public Accountants accepted entrustment, completed the audit of the financialstatements of the Company for 2012 and issued unqualified auditor's report with paragraph of emphasized mattersfor the Company's financial statements for 2012. In accordance with No. 14 Rule for Preparation and Report ofInformation Disclosure by Companies Publicly Issuing Securities - Non-standard Unqualified Audit Opinions andTreatment of Matters Involved Therein, relevant notes are as follows:As noticed by Shine Wing Certified Public Accountants during audit, Since March 2007, Shenzhen VictorOnward Textile Industrial Co., Ltd. stopped production and dismissed most of workers. The company currentlyonly had house leasing business.Except that Shenzhen East Asia Victor Onward Textile Printing and Dyeing Co., Ltd. is still operating normally,other 5 subsidiaries controlled by the Company have stopped operation or are maintaining daily operation byhouse property lease. It plans to invest in Nanjing East Asia Textile Printing and Dyeing Co., Ltd. with part ofmachinery and equipment in 2007, The investment plan has not been implemented, the proposed investment hasbeen idle equipment stored in the Victor Onward Company. On June 4, 2012, The Victor Onward Company has
                                                                           深圳中冠纺织印染股份有限公司 2013 半年度报告全文instituted court action at Jiangsu Province Higher People's Court, and asked to terminate the contracts andagreement on investment on Nanjing project. We believe that the sustainable operation ability of Shenzhen VictorOnward Textile Industrial Co., Ltd. is still uncertain, so I emphasized the situation in the audit reports and issuedunqualified auditor's report with paragraph of emphasized matters. The matters involved in highlighted statementdid not apparently violate Accounting Standards for Business Enterprises and regulations on relevant informationdisclosure standardization.(III) The opinions of the board of directors, supervisory committee and management of theCompany on this matter:
      The board of directors, Supervisory Committee and managers believed that the printing and dyeing plant ofthe company had stopped operation or maintained daily operation by house leasing. .It plans to invest in NanjingEast Asia Textile Printing and Dyeing Co., Ltd. with part of machinery and equipment, Due to the reason on theside of the other party of joint venture and change of industry prospect. Partners disagree with our views in thereplenishment of the things, thus cooperation is difficult to continue. Although we sent our staff to Nanjing manytimes for negotiation, but failed to reach a consensus. Therefore, we decided the proceedings in the People'sCourt.(IV) Extent of influence of this matter on the Company:This event greatly impacted the production & operation activities and sustainable development of company, itmade company had the situation of implementing other special treatment which was stipulated in Shenzhen StockExchange Listing Rules , the stock of our company had been implemented for other special treatment. As theaudited net profits of the Company for 2011 and 2012 were negative, Shenzhen Stock Exchange will give specialtreatment to the stocks of the Company for the caution of delisting risk according to relevant regulations includingStock Listing Rules of Shenzhen Stock Exchange. The stocks of the Company will be subject to special treatmentfor caution of delisting risk after the disclosure of 2012 annual report. The Company stocks will be suspendedfrom April 24, 2013, The stocks of the Company will implement special treatment for delisting risk warning afterthe Company was restored for trading from April 24,2013.
    According to Stock Listing Rules of Shenzhen Stock Exchange, the listing of the stocks of the Company willbe suspended from the day of announcement of 2013 annual report if its audited net profit for 2013 is stillnegative. In case of failure to reverse loss according to the annual report for the latest period disclosed withinstatutory time limit, the stocks of the Company will face the risk of termination of listing.(V) The possibility of eliminating this matter and its influence:
    In order to try to have the caution of delisting risk revoked, the Company will make all efforts to enhanceoperating efficiency and increase return through various measures and take "reversing loss into profit" as thepriority target of production and operation for the year in 2013.(VI) The concrete measures of eliminating this matter and its influenceThe Company Holding a positive and prudent attitude, the company has been looking for a new business directionand an effective way to fight to reverse loss into profit in 2013.VII. Implementation of profit distribution in reporting periodImplementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capitalreserve in particular
                                                                             深圳中冠纺织印染股份有限公司 2013 半年度报告全文□ Applicable √ Not ApplicableThe Company has no profit distribution and share and shares converted from capital reserve either, which was deliberated andapproved in annual shareholders’ general meeting of 2012.VIII. Profit distribution for the report period
                     Particulars about the profit distribution and capitalizing reserves plan for the report periodIX. Statement of such activities as reception, research, communication, interview in the reportingperiod
                                                                                                              Discussion topics and
    Reception time       Reception place     Way of reception      Types of visitors     Visitors received
                                                                                                              provision of materials
                                                                                                           Enquiry about the
                     BOD office of the                                                                     Company’s whether the
    April 24, 2013                            By phone              Individual           Investor
                      Company                                                                              Company has any plan for
                                                                                                           reorganization
                     BOD office of the                                                                     Enquiry about the company
    May 6, 2013                               By phone              Individual           Investor
                     Company                                                                               situation
                                                                                                           Inquire of the Company
                     BOD office of the                                                                     about the time of holding
    May 30, 2013                              By phone              Individual           Investor
                     Company                                                                               shareholders' general
                                                                                                           meeting
                                                                                                           Inquire about the reason for
                     BOD office of the                                                                     the rise in stock price of the
    June 4, 2013                              By phone              Individual           Investor
                     Company                                                                               Company during sharp
                                                                                                           decline of stock market.
                                                                      深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                                V. 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” and the provisions and requirements of TheChina Securities Regulatory Commission (CSRC) and The Shenzhen Stock Exchange (SZSE) to continuouslyimprove the corporate governance structure, establish the modern enterprise system, standardize the companyoperations and seriously and well perform all the works of corporate governance. the company has set up the workplan and program on the implementation of internal control norms in order to further strengthen the constructionwork of the company’s internal control norms system according to the relevant specifications of “FoundationalNorms on Internal Control of Enterprise” and “Supporting Instructions to Internal Control of Enterprise”.Currently, the company is carrying out the relevant specific works as per all the stage of work plans of the internalcontrol construction. There isn’t difference between the management prac tise and the regulations of the CompanyLaw and CSRC.
      In the report period, the Company further increased information transparency and properly carried outpublicity work for protection of investors. It timely answered the questions of investors and communicated withmedium and small investors by making use of telephone, email, especially the platform for communication withinvestors set up by Shenzhen Stock Exchange to let them know itself better and improve its informationtransparency.
    In the report period, relevant personnel of the Company attended the working meeting for prevention andcontrol of insider dealings of listed companies in Shenzhen organized by Shenzhen Securities Regulatory Bureau.After the meeting, all directors, supervisors and senior executives and other working personnel who have access toinsider information were trained so that the trainees fully understood the importance of cracking down on insiderdealings. After self inspection, relevant personnel were not found to carry out insider dealings or to suggest othersto conduct transactions by making use of insider information. No insider information was divulged. The Companydid not conduct administration in a non-standardized way such as providing non-open information to thecontrolling shareholder or the actual controller. The Company was not investigated and prosecuted or ordered tomake rectification by regulatory authority due to the implementation of insider registration system or beingsuspected of insider dealing.II. Major lawsuits and Arbitration affairs√ Applicable□ Not applicable
    Basic information   Amount       Whether comes Progress of     Trial results and    Judgment     Disclosure   Index of
       of           involved       to accrual   lawsuits(arb      influence        enforcement      date      disclosure
                                                                   深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    lawsuits(Arbitratio (RMB’0000)   liability or not     itration)               situation
         n)On June 4, 2012,The company hasinstituted courtaction againstbelow threecompanies atJiangsu ProvinceHigher People'sCourt, and askedto terminate thecontracts andagreements signedwith Nanjing EastAsia TextilePrinting & DyeingCo., Ltd., Nanjing
    East Asia                                                                                                  Announceme
    Investment &                                                                                               nt No.
    Development                                                                                                2012-0614)
    Group Co., Ltd.                                                                                            Securities
                                                     he case
    and Hong Kong                                                                                              Times , Hong
                          4,792 No                   hasn’t yet                           June 16, 2012
    Yaojunxing Co.,                                                                                            Kong
                                                     been tried
    Ltd., who shall pay                                                                                        Commercial
    RMB47,922,902.9                                                                                            Daily and
    2 to the company                                                                                           www.cninfo.
    for the pecuniary                                                                                          com.cnloss of implicativecompensation andundertake the costsof litigation. Thecompany hasreceived theSu-Shang-Wai-Chu-Zi No.0002(2012) of “Noticeon IndictmentAcceptance andCollegial PanelAnnouncement”issued by JiangsuProvince HigherPeople's Court on
                                                                                        深圳中冠纺织印染股份有限公司 2013 半年度报告全文June 14, 2012.III. Query form media□ Applicable√ Not applicableIn the reporting year, the Company had no query from mediaIV. Assets Transactions1. Sales of Assets
                                              Net
                                             profit
                                            contribu
                                             ted to                 Proporti                         Connect
                                              the                    on of                             ivity
                                            compan                  the net                          Relation Has all
                                                                                                                             Has all
                                            y from                   profit               Is it a     s with       the
                                                        Gain/los                                                               the
    Other                           Transact     the                   contribu Pricing related           the       ownersh
                                                        s arising                                                             credit
    party of                           ion      beginni                  ted by principl transacti        other      ip of the                          Disclos
            Assets     Date of                           from                                                                 /debt      Disclos
    the                            price      ng of                  the asset e for the on Is it a    party       assets                              ure
             sold       sale                             sales                                                               involve ure date
    transacti                        (RMB’0      the                    for the    asset    related (applica involve                                   index
                                                        (RMB’0                                                              d been
    on                             000) reportin                    compan      sold     transacti ble to         d been
                                                          000)                                                               transferr
                                             g year                 y in the               on          the       transferr
                                                                                                                                ed
                                             to the                   total                          related        ed
                                            date of                  profit                          transacti
                                            sales of                  (%)                              on)
                                            the asset
                                            (RMB’0
                                              000)V. Material related transactions1. Other material related transactionsThe account receivable of related parties of Listed Company
                                                                                                                                                   Unit:RMB
                                                                          Year-end balance                            Year-beginning balance
            Projects                Related parties           Book balance              Provision for            Book balance             Provision for
                                                                                         devaluation                                      devaluation
    Account receivable               Shenye Union(HK)                    299,428.00            299,428.00                  299,428.00            299,428.00
                                  Co., Ltd.The account Payablee of related parties of Listed Company
                                                                                深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                                                                                                                Unit :RMB
                Projects                        Related parties                      Year-end balance             Year-beginning balance
                                                                                              15,104,652.00                   24,748,412.00
    Other payable                          Shenzhen Union Real estate                               700,734.00                      700,734.00
                                           Group Co., Ltd.Relevant inquiry with the internet website for disclosing provisional report on material related transactions
                                                     Date of disclosing provisional            Description of the website for disclosingDescription of provisional announcement
                                                             announcement                               provisional announcementsVI. Important contracts and implementationVII. The commitments of the Company and its shareholders holding over 5% of the Company’s total shares in thereport year of extending to the report year from previous year.
                                               Commitment                               Time of making        Period of
                Commitment                                            Contents                                                Fulfillment
                                                    maker                                commitment         commitment
                                                                  Committed
                                                                  when the
                                                                  restricted-for-sal
                                                                  e shares from
                                                                  the shares
                                                                  restructuring
                                                                  were listed for
                                                                  circulation in the
                                                                  market: i. if they
                                             Union Holdings
                                                                  plan to sell the
                                             Co.,
                                                                  shares through
                                             Ltd/Shenzhen
                                                                  the securities
                                             Textile                                                                       Under
    Commitment on share reform                                        exchange             2006.3.24          In effect
                                             (Holdings) Co.,                                                               Fulfillment
                                                                  system in the
                                             Ltd./Union
                                                                  future, and the
                                             Development
                                                                  decrease of the
                                             Group Co., Ltd.
                                                                  shares they hold
                                                                  reaches 5%
                                                                  within 6 months
                                                                  after the first
                                                                  decrease, they
                                                                  will disclose an
                                                                  announcement
                                                                  indicating the
                                                                  sale through the
                                                                       深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                                       company within
                                                       two trading days
                                                       before the first
                                                       decrease; ii.
                                                       They shall
                                                       strictly observe
                                                       the “Guidelines
                                                       on Transfer of
                                                       Restricted-for-sa
                                                       le Original
                                                       Shares of Listed
                                                       Companies” and
                                                       the provisions of
                                                       the relevant
                                                       business
                                                       principles of
                                                       Shenzhen Stock
                                                       Exchange.
    Commitment in the acquisition report or   Not
    the report on equity changes              applicable
    Commitment made upon the assets           Not
    replacement                               applicable
                                          NotCommitments made upon issuance
                                          applicable
    Other commitments made to minority        Not
    shareholders                              applicable
    Executed timely or not?                   YesVIII. Engagement/Disengagement of CPAsWhether the intrim Report was audited or not□ Yes √ NoIX. Notes to other significant Events
    Announcement on lawsuits.of Shenzhen Victor Onward Textile Industrial Co., Ltd. AnnouncementNo.:2012-0614,Announcement Date: June 16, 2012.(www.cninfo.com.cn),Investors are advised to pay attentionto investment risks.http://www.cninfo.com.cn/finalpage/2012-06-16/61144742.PDF
                                                                               深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                   VI. Change of share capital and shareholding of Principal Shareholders
         (I).Changes in share capital
                               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 person
                                        0      0%             0            0              0           0              0          0           0%shares
    3.Other domestic shares                 0      0%             0            0              0           0              0          0           0%Of which:Domestic 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%investors
    Of which:Foreign legal
                                        0      0%             0            0              0           0              0          0           0%person shares
    Foreign 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
    1.Common shares in            99,720,45                                                                                  99,720,45
                                            58.96%            0            0              0           0              0                 58.96%
    RMB                                     3                                                                                       3
                                                                                     深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    2.Foreign       shares      in 69,421,90                                                                                      69,421,90
                                                41.04%               0           0                0          0          0                 41.04%
    domestic market                          3                                                                                           3
    3.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%               0           0                0          0          0                  100%
                                       56                                                                                           56Reasons for share changed□Applicable√Not applicableApproval of Change of Shares□Applicable√Not applicableOwnership transfer of share changes□Applicable√Not applicableInfluence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period□Applicable√Not applicableOther information necessary to disclose for the company or need to disclosed under requirement from security regulators□Applicable√Not applicableExplanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability of the Company□Applicable√Not applicableII. Number of shares and shares held
                                                                                                                                      Unit:Shares
    Total shareholder at period-end                                                                                                           9,365
                                                    Shareholders with over 5% shares held
                                                                                      Amount                            Number os share
                                                           Number of Changes
                                         Proportion of                                   of           Amount of          pledged/frozen
                          Nuture of                        shares held      in
    Shareholders                              shares held                              restricte un-restricted
                         shareholder                        at period    reportin                                  State of
                                               (%)                                  d shares shares held                           Amount
                                                              -end       g period                                   share
                                                                                       held
                     Domestic Non-Union Holdings
                     State-owned legal           25.51%    43,141,032 0                       0       43,141,032Co., Ltd.
                     person
                                                                                深圳中冠纺织印染股份有限公司 2013 半年度报告全文STYLE-SUCCES Foreign legal
                                               14.46%    24,466,029 0                  0   24,466,029
    S LIMITED           personShenzhen Textile
                    State-owned                                       -2,275,1
    (Group)Holdings                                 4.11%     6,958,246                    0    6,958,246
                    Legal person                                      48LtdRich Crown
                    Foreign legal
    Investment Co.,                                 3.62%     6,114,556 0                  0     6,114,556
                    personLtd.
    Union               Domestic Non-
                                                                      -140,00
    Development         State-owned legal           3.36%     5,681,089                    0    5,681,089
                                                                      0
    Group Co., Ltd.     person
    Liuzhou Jiali       Domestic Non-
    Real estate         legal person
                                                2.49%     4,220,000 0                  0    4,220,000
    Development         State-owned legal
    Co., ltd.           person
                    Domestic Natural
    Zeng Ying                                       1.21%     2,039,600 0                  0    2,039,600
                     personLiuzhou
                    Domestic Non-Ruiheng
                    State-owned legal           1.01%     1,703,000 -7,000             0    1,703,000Mechatronics
                    personCo., Ltd.
                    Domestic Natural                                  +1,005,
    Qin Yuyan                                       0.59%     1,005,376                    0    1,005,376
                    person                                            376
    Shing Ying          Foreign Natural                                   -625,00
                                                0.54%       909,962                    0      909,962
    Chieh               person                                            0Strategy investors or general legalperson becomes top 10 shareholders
                                         N/Adue to rights issued (ifapplicable)(See Notes3)
    Explanation on associated                The controlling shareholder of the above-mentioned largest shareholder Shenzhen Union
    relationship among the aforesaid         Holdings Co., Ltd.and fourth shareholder Rich Crown Investment Co., Ltd.. Is Union
    shareholders                             Development Group Ltd.
                                        Shareholding of top 10 shareholders of unrestricted shares
                                          Quantity of unrestricted shares held at the end of the               Share type
       Name of the shareholder
                                                            reporting period                          Share type        Quantity
                                                                                                   RMB Common
    Union Holdings Co., Ltd.                                                              43,141,032                            43,141,032
                                                                                                   shares
                                                                                                   Foreign shares
    STYLE-SUCCESS LIMITED                                                                 24,466,029 placed in                  24,466,029
                                                                                                   domestic
                                                                           深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                                                                                exchange
    Shenzhen Textile (Group)Holdings                                                                RMB Common
                                                                                    6,958,246                           6,958,246
    Ltd                                                                                             shares
                                                                                                Foreign shares
                                                                                                placed in
    Rich Crown Investment Co., Ltd.                                                     6,114,556                           6,114,556
                                                                                                domestic
                                                                                                exchange
                                                                                                RMB Common
    Union Development Group Co., Ltd.                                                   5,681,089                           5,681,089
                                                                                                shares
    Liuzhou Jiali Real estate                                                                       RMB Common
                                                                                    4,220,000                           4,220,000
    Development Co., ltd.                                                                           shares
                                                                                                Foreign shares
                                                                                                placed in
    Zeng Ying                                                                           2,039,600                           2,039,600
                                                                                                domestic
                                                                                                exchange
    Liuzhou Ruiheng Mechatronics                                                                    RMB Common
                                                                                    1,703,000                           1,703,000
    Co., Ltd.                                                                                       shares
                                                                                                Foreign shares
                                                                                                placed in
    Qin Yuyan                                                                           1,005,376                           1,005,376
                                                                                                domestic
                                                                                                exchange
                                                                                                Foreign shares
                                                                                                placed in
    Shing Ying Chieh                                                                     909,962                              909,962
                                                                                                domestic
                                                                                                exchangeExplanation on associatedrelationship or consistent action
    among the top 10 shareholders of        The controlling shareholder of the above-mentioned largest shareholder Shenzhen Unionnon-restricted negotiable shares and Holdings Ltd. and fourth shareholder Rich Crown Investment Co., Ltd.. Is Unionthat between the top 10 shareholders Development Group Ltd.of non-restricted negotiable sharesand top 10 shareholdersNotes to the shareholders involved
    in financing securities (if any) (See   N/ANotes4)Did any shareholder of the Company carry out an agreed buy-back in the reorting period?□ Yes √ NoIII. Change of the controlling shareholder or the actual controllerChange of the controlling shareholder in the reporting period
                                                          深圳中冠纺织印染股份有限公司 2013 半年度报告全文□ Applicable √ Not ApplicableChange of the actual controller in the reporting period□ Applicable √ Not Applicable
                                                                深圳中冠纺织印染股份有限公司 2013 半年度报告全文
               VII. Information about Directors, Supervisors and Senior ExecutivesI. Change in shares held by directors, supervisors and senior executives□ Applicable √ Not ApplicableShareholdings of directors, supervisors and senior management staff did not change in the reporting period. Fordetails, see the 2012 annual report.
    II.   Retirement and dismissal of Directors, Supervisors and senior Executives
      Names          Titles          Types           Date                            Causes
      N/A
                                                         深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                        VIII. Financial Report1. Audit reportHas this semi-annual report been audited?□ Yes √ NoThe semi-annual financial report has not been audited.II. Financial statementsCurrency unit for the statements in the notes to these financial statements:RMB1. Consolidated balance sheetPrepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
                                                                                               Unit:RMB
                  Items                        Year-end balance                   Year-beginning balance
            Current asset:
            Monetary fund                                     48,768,467.00                         52,227,262.00
         Settlement provision
          Outgoing call loan
        Trading financial assets
            Bill receivable                                             0.00                         1,500,000.00
          Account receivable                                      744,712.00                           744,712.00
               Prepayments                                         15,867.00                           176,443.00
         Insurance receivable
        Reinsurance receivable
    Provisions of Reinsurance contracts
                receivable
          Interest receivable                                                                              38,414.00
         Dividend receivable
       Other account receivable                                   339,073.00                           260,005.00
    Repurchasing of financial assets
               Inventories                                        101,536.00                           101,536.00
    Non-current asset due in 1 year
                                          深圳中冠纺织印染股份有限公司 2013 半年度报告全文
         Other current asset
        Total of current assets               49,969,655.00                        55,048,372.00
        Non-current assets:Loans and payment on other’s behalf
              disbursed
      Disposable financial asset                564,228.00                            751,542.00
    Expired investment in possess
        Long-term receivable
    Long term share equity investment            65,712,614.00                        65,784,312.00
         Property investment                  29,488,804.00                        31,041,484.00
             Fixed assets                     12,204,036.00                        12,416,459.00
       Construction in progress
        Engineering material
         Fixed asset disposal
      Production physical assets
            Gas & petrol
           Intangible assets                   1,840,611.00                         1,860,764.00
            R & D petrol
              Goodwill                         5,099,624.00                         5,099,624.00Long-germ expenses to be amortized
      Differed income tax asset
       Other non-current asset
      Total of non-current assets            114,909,917.00                       116,954,185.00
            Total of assets                  164,879,572.00                       172,002,557.00
          Current liabilities
          Short-term loans
       Loan from Central BankDeposit received and hold for others
          Call loan received
    Trade off financial liabilities
             Bill payable
          Account payable                      3,214,947.00                         3,239,571.00
          Advance payment                      7,827,624.00                         2,778,488.00Selling of repurchased financial assets
                                            深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Fees and commissions receivable
       Employees’ wage payable                   776,279.00                            766,680.00
              Tax payable                        1,617,381.00                         1,622,074.00
            Interest payable
           Dividend payable                      1,215,946.00                         1,215,946.00
         Other account payable                  22,676,923.00                        32,227,317.00
        Reinsurance fee payable
    Insurance contract provision
    Entrusted trading of securities
    Entrusted selling of securities
    Non-current liability due in 1 year
         Other current liability                 3,922,263.00                         1,547,263.00
        Total of current liability              41,251,363.00                        43,397,339.00
       Non-current liabilities:
            Long-term loan                        953,576.00                          1,033,936.00
             Bond payable
          Long-term payable                      8,338,729.00                         8,488,953.00
            Special payable
          Expected liabilities
    Differed income tax liability                753,092.00                            766,660.00
      Other non-current liabilities               836,792.00                            836,792.00
    Total of non-current liabilities           10,882,189.00                        11,126,341.00
            Total of liability                  52,133,552.00                        54,523,680.00
            Owners’ equity
              Share capital                    169,142,356.00                       169,142,356.00
            Capital reserves                    39,664,228.00                        39,790,784.00
         Less:Shares in stock
            Special reserves
            Surplus reserves                    26,704,791.00                        26,704,791.00
        Common risk provision
          Undistributed profit                -120,397,547.00                      -116,273,941.00
    Different of foreign currency translation         -994,294.00                          -511,599.00Total of owner’s equity belong to the
                                               114,119,534.00                       118,852,391.00
            parent company
                                                        深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Minority shareholders’ equity                          -1,373,514.00                       -1,373,514.00
         Total of owners’ equity                           112,746,020.00                      117,478,877.00
    Total of liabilities and owners’ equity                   164,879,572.00                      172,002,557.00Legal representative :Hu YongfengnPerson-in-charge of the accounting work:Zhang JinliangPerson-in -charge of the accounting organ:Ren Changzheng2. Balance sheet of Parent CompanyPrepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
                                                                                             Unit:RMB
                  Items                       Year-end balance                  Year-beginning balanceCurrent asset:
    Monetary fund                                                12,706,881.00                       17,293,509.00Trading financial assets
    Bill receivable                                                                                   1,500,000.00Account receivablePrepaymentsInterest receivableDividend receivable
    Other account receivable                                     82,874,786.00                       72,818,786.00
    Inventories                                                       101,536.00                        101,536.00Non-current asset due in 1 yearOther current asset
    Total of current assets                                      95,683,203.00                       91,713,831.00Non-current assets:Disposable financial assetExpired investment in possessLong-term receivable
    Long term share equity investment                            36,788,953.00                       36,788,953.00
    Property investment                                              4,892,161.00                     5,060,748.00
    Fixed assets                                                     9,118,735.00                     9,145,661.00Construction in progressEngineering material
                                      深圳中冠纺织印染股份有限公司 2013 半年度报告全文Fixed asset disposalProduction physical assetsGas & petrol
    Intangible assets                          1,840,611.00                         1,860,764.00R & D petrolGoodwillLong-germ expenses to be amortizedDiffered income tax assetOther non-current asset
    Total of non-current assets               52,640,460.00                        52,856,126.00
    Total of assets                          148,323,663.00                       144,569,957.00Current liabilitiesShort-term loansTrade off financial liabilitiesBill payable
    Account payable                              113,343.00                           113,344.00
    Advance payment                            7,052,540.00                         2,002,540.00
    Employees’ wage payable                    720,836.00                            735,970.00
    Tax payable                                 565,517.00                            573,074.00Interest payableDividend payable
    Other account payable                       895,076.00                            884,092.00Non-current liability due in 1 year
    Other current liability                    3,922,263.00                         1,547,263.00
    Total of current liability                13,269,575.00                         5,856,283.00Non-current liabilities:Long-term loanBond payableLong-term payableSpecial payableExpected liabilities
    Differed income tax liability              4,180,138.00                         4,180,138.00
    Other non-current liabilities               836,792.00                            836,792.00
    Total of Non-current liabilities           5,016,930.00                         5,016,930.00
                                                         深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Total of liability                                            18,286,505.00                         10,873,213.00Owners’ equity
    Share capital                                                169,142,356.00                        169,142,356.00
    Capital reserves                                              31,606,598.00                         31,606,598.00Less:Shares in stockSpecial reserves
    Surplus reserves                                              26,309,287.00                         26,309,287.00Provision of general risk
    Undistributed profit                                         -97,021,083.00                        -93,361,497.00Different of foreign currency translation
    Total of owners’ equity                                     130,037,158.00                        133,696,744.00
    Total of liabilities and owners’ equity                     148,323,663.00                        144,569,957.00Legal representative :Hu YongfengnPerson-in-charge of the accounting work:Zhang JinliangPerson-in -charge of the accounting organ:Ren Changzheng3.Consolidated Profit StatementPrepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
                                                                                             Unit :RMB
                     Items                  Amount in this period                 Amount in last period
    I. Income from the key business                                4,990,626.00                          5,019,787.00
    Incl:Business income                                          4,990,626.00                          5,019,787.00Interest incomeInsurance fee earnedFee and commission received
    II. Total business cost                                        6,628,035.00                          6,669,607.00
    Incl:Business cost                                            2,073,313.00                          2,199,834.00Interest expenseFee and commission paidInsurance discharge paymentNet claim amount paid
                                                   深圳中冠纺织印染股份有限公司 2013 半年度报告全文Insurance policy dividend paidInsurance policy dividend paidReinsurance expenses
    Business tax and surcharge                               230,666.00                            158,799.00Sales expense
    Administrative expense                                  4,050,058.00                         4,358,499.00
    Financial expenses                                       273,998.00                            -47,525.00Asset impairment lossAdd:Gains from change of fir value
                                                                                               -13,510.00(“-”for loss)
    Investment gain(“-”for loss)                          -71,083.00                           428,646.00
    Incl: investment gains from affiliates                    -71,083.00                           417,624.00Gains from currency exchange(“-”forloss)
    III. Operational profit(“-”for loss                 -1,708,492.00                        -1,234,684.00
    Add:Non-business income                                    3,929.00                            29,563.00
    Less:Non business expenses                             2,419,043.00                         2,982,015.00Incl:Loss from disposal of non-current
                                                          19,043.00                                   0.00assets
    IV.Total profit(“-”for loss)                         -4,123,606.00                        -4,187,136.00Less:Income tax expenses
    V. Net profit(“-”for net loss)                     -4,123,606.00                        -4,187,136.00Including: Net profit realized by theentity taken over before the takeoverNet profit attributable to the owners of
                                                       -4,123,606.00                        -4,187,136.00parent companyMinority shareholders’ equity
    VI. Earnings per share:                      --                                     --
    (I)Basic earnings per share                                  -0.02                                  -0.02
    (II)Diluted earnings per share                                 -0.02                                  -0.02
    VII. Other comprehensive income                          -609,251.00                          -119,197.00
    VIII. Total comprehensive income                       -4,732,857.00                        -4,306,333.00
    Total       comprehensive            income
    attributable to the owner of the parent                -4,732,857.00                        -4,306,333.00company
    Total       comprehensive            income
                                                          深圳中冠纺织印染股份有限公司 2013 半年度报告全文attributable minority shareholdersLegal representative :Hu YongfengnPerson-in-charge of the accounting work:Zhang JinliangPerson-in -charge of the accounting organ:Ren Changzheng4. Profit statement of the Parent CompanyPrepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
                                                                                                 Unit :RMB
    Items                                       Amount in this period                  Amount in last period
    I. Income from the key business                                     908,470.00                             741,567.00
    Less:Business cost                                               168,586.00                             239,378.00
    Business tax and surcharge                                           76,269.00                                   0.00
    Sales expense
    Administrative expense                                        2,688,880.00                           2,901,344.00
    Financial expenses                                          -770,606.00                            -633,443.00Asset impairment lossAdd:Gains from change of for value
                                                                          0.00                             -13,510.00(“-”for loss)
    Investment gain(“-”for loss)                                          0.00                              11,022.00
    Incl: investment gains from affiliates
    II. Operational profit(“-”for loss)                       -1,254,659.00                           -1,768,200.00
    Add:Non-business income                                             2,000.00                               5,174.00
    Less:Non- business expenses                                  2,406,927.00                           2,982,015.00Incl:Loss from disposal of non-currentassets
    III.Total profit(“-”for loss)                               -3,659,586.00                           -4,745,041.00
    Less:Income tax expenses
    IV. Net profit(“-”for net loss)                           -3,659,586.00                           -4,745,041.00
    V. Earnings per share:                              --                                     --(I)Basic earnings per share(II)Diluted earnings per shareVI. Other comprehensive income
                                                         深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    VII. Total comprehensive income                               -3,659,586.00                       -4,745,041.00Legal representative :Hu YongfengnPerson-in-charge of the accounting work:Zhang JinliangPerson-in -charge of the accounting organ:Ren Changzheng5. Consolidated Cash flow statementPrepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
                                                                                            Unit :RMB
                 Items                      Amount in this period                Amount in last periodI.Cash flows from operating activitiesCash received from sales of goods or
                                                               6,412,358.00                        5,167,056.00rending of servicesNet increase of customer deposits andcapital kept for brother companyNet increase of loans from central bankNet increase of inter-bank loans fromother financial bodiesCash received against original insurancecontractNet cash received from reinsurancebusinessNet increase of client deposit andinvestmentNet increase of trade financial assetdisposalCash received as interest, processing feeand commissionNet increase of inter-bank fund receivedNet increase of repurchasing businessTax returnedOther cash received from business
                                                                    598,048.00                       559,535.00operation
    Sub-total of cash inflow                                       7,010,406.00                        5,726,591.00
                                                深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Cash     paid      for     purchasing      ofmerchandise and servicesNet increase of client trade and advanceNet increase of savings n central bankand brother companyCash paid for original contract claimCash paid for interest, processing feeand commissionCash paid for policy dividend
    Cash paid to staffs or paid for staffs               1,414,058.00                         1,550,781.00
    Taxes paid                                           1,058,641.00                         1,054,536.00
    Other cash paid for business activities              2,588,267.00                         2,955,285.00Sub-total of cash outflow from business
                                                     5,060,966.00                         5,560,602.00activities
    Cash    flow generated           by business
                                                     1,949,440.00                           165,989.00operation, netII.Cash flow generated by investing
    Cash     received        from      investmentretrieving
    Cash received as investment gains                                                            21,841.00Net cash retrieved from disposal of
    fixed assets, intangible assets, and other           5,087,000.00                            30,000.00long-term assetsNet cash received from disposal ofsubsidiaries or other operational unitsNet cash received from disposal ofsubsidiaries or other operational units
    Sub-total of cash         inflow due       to
                                                     5,087,000.00                            51,841.00investment activitiesCash paid for construction of fixed
    assets, intangible assets and other                    62,063.00                             83,272.00long-term assetsCash paid as investmentNet increase of loan against pledgeNet cash received from subsidiaries andother operational units
    Other    cash    paid      for     investmentactivities
                                                        深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Sub-total of cash outflow          due to
                                                               62,063.00                             83,272.00investment activities
    Net cash flow generated by investment                        5,024,937.00                           -31,431.00III.Cash flow generated by financingCash received as investmentIncl: Cash received as investment fromminor shareholdersCash received as loansCash received from bond placingOther financing –related ash receivedSub-total of cash inflow from financingactivities
    Cash to repay debts                                         10,000,000.00Cash paid as dividend, profit, orinterestsIncl: Dividend and profit paid bysubsidiaries to minor shareholdersOther cash paid for financing activitiesSub-total of cash outflow due to
                                                            10,000,000.00financing activities
    Net cash flow generated by financing                       -10,000,000.00
    IV.    Influence     of    exchange    rate
                                                              -433,172.00                           132,554.00alternation on cash and cash equivalentsV.Net increase of cash and cash
                                                            -3,458,795.00                           267,112.00equivalents
    Add:    balance      of   cash   and   cash
                                                            52,227,262.00                        53,399,316.00equivalents at the beginning of termVI.Balance of cash and cash equivalents
                                                            48,768,467.00                        53,666,428.00at the end of termLegal representative :Hu YongfengnPerson-in-charge of the accounting work:Zhang JinliangPerson-in -charge of the accounting organ:Ren Changzheng6. Cash flow statement of the Parent CompanyPrepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
                                                            深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                                                                               Unit :RMB
                    Items                      Amount in this period                Amount in last periodI.Cash flows from operating activitiesCash received from sales of goods or
                                                                  2,408,470.00                          856,782.00rending of servicesTax returnedOther cash received from business
                                                                  1,009,229.00                          702,760.00operation
    Sub-total of cash inflow                                          3,417,699.00                        1,559,542.00
    Cash     paid      for      purchasing    ofmerchandise and services
    Cash paid to staffs or paid for staffs                                 990,236.00                       919,417.00
    Taxes paid                                                             466,148.00                       453,953.00
    Other cash paid for business activities                           1,619,943.00                        2,066,267.00Sub-total of cash outflow from business
                                                                  3,076,327.00                        3,439,637.00activities
    Cash    flow generated          by business
                                                                       341,372.00                    -1,880,095.00operation, netII.Cash flow generated by investing
    Cash     received        from     investmentretrieving
    Cash received as investment gains                                                                        21,841.00Net cash retrieved from disposal of
    fixed assets, intangible assets, and other                        5,072,000.00                           30,000.00long-term assetsNet cash received from disposal ofsubsidiaries or other operational unitsOther cash receivable for investmentactivities
    Sub-total of cash           inflow due    to
                                                                  5,072,000.00                           51,841.00investment activitiesCash paid for construction of fixedassets, intangible assets and otherlong-term assetsCash paid as investmentNet cash received from subsidiaries andother operational units
                                                         深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Other       cash    paid      for   investmentactivities
    Sub-total of cash outflow              due toinvestment activities
    Net cash flow generated by investment                         5,072,000.00                            51,841.00III.Cash flow generated by financing
    Cash         received        from   absorbinginvestmentCash received as loansCash received from bond placingOther financing –related ash receivedSub-total of cash inflow from financingactivities
    Cash to repay debts                                          10,000,000.00Cash paid as dividend, profit, orinterestsOther cash paid for financing activitiesSub-total of cash outflow due to
                                                             10,000,000.00financing activities
    Net cash flow generated by financing                        -10,000,000.00
    IV.     Influence       of    exchange    ratealternation on cash and cash equivalentsV.Net increase of cash and cash
                                                             -4,586,628.00                        -1,828,254.00equivalents
    Add:     balance        of   cash   and   cash
                                                             17,293,509.00                        21,483,163.00equivalents at the beginning of termVI.Balance of cash and cash equivalents
                                                             12,706,881.00                        19,654,909.00at the end of termLegal representative :Hu YongfengnPerson-in-charge of the accounting work:Zhang JinliangPerson-in -charge of the accounting organ:Ren Changzheng7. Consolidated Statement on Change in Owners’ EquityPrepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.Amount in this period
                                                                                             Unit:RMB
                                                                     深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                                                            Amount in this period
                                               Owner’s equity Attributable to the Parent Company
                                                                                      Commo                            Minor         Total of
                Items
                                                         Less:   Speciali                       Attribut
                                    Share     Capital                       Surplus   n risk                         sharehold       owners’
                                                        Shares     zed                            able     Other
                                    Capital reserves                        reserves provisio                        ers’ equity     equity
                                                        in stock reserve                         profit
                                                                                        n
                                    169,142 39,790,7                        26,704,              -116,27 -511,59 -1,373,51 117,478,87I.Balance at the end of last year
                                    ,356.00     84.00                        791.00             3,941.00      9.00          4.00           7.00Add: Change of accounting
    policyCorrecting of previous errors
        Other
    II.Balance at the beginning of      169,142 39,790,7                        26,704,              -116,27 -511,59 -1,373,51 117,478,87
    current year                        ,356.00     84.00                        791.00             3,941.00      9.00          4.00           7.00
                                              -126,55                                           -4,123,6 -482,69                    -4,732,857.III.Changed in the current year
                                                 6.00                                             06.00       5.00                             00
                                                                                                -4,123,6                            -4,123,606.
    (I) Net profit
                                                                                                  06.00                                        00
                                              -126,55                                                      -482,69                  -609,251.0
    (II)Other misc.income
                                                 6.00                                                         5.00                              0
                                              -126,55                                           -4,123,6 -482,69                    -4,732,857.Total of (I) and (II)
                                                 6.00                                             06.00       5.00                             00(III) Investment or decreasingof capital by owners1. Capital inputted by owners2.Amount of shares paid andaccounted as owners’ equity3. Other(IV)Profit allotment1.Providing of surplus reserves2.Providing of common riskprovisions3.Allotment to the owners (orshareholders)
    4.Other(V) Internal transferring ofowners’ equity
                                                                      深圳中冠纺织印染股份有限公司 2013 半年度报告全文1. 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(VII)Other
    IV. Balance at the end of this      169,142 39,664,2                         26,704,             -120,39 -994,29 -1,373,51 112,746,02
    term                                ,356.00     28.00                         791.00             7,547.00        4.00          4.00          0.00Amount in last year
                                                                                                                           Unit:RMB
                                                                              Amount in last year
                                                Owner’s equity Attributable to the Parent Company
                                                                                       Commo                              Minor         Total of
                 Items                                    Less:   Speciali                       Attribut
                                    Share     Capital                        Surplus   n risk                           sharehold       owners’
                                                         Shares     zed                             able      Other
                                    Capital reserves                         reserves provisio                          ers’ equity    equity
                                                         in stock reserve                         profit
                                                                                         n
                                    169,142 39,742,4                         26,704,              -116,02 -515,91 -1,373,51 117,673,58I.Balance at the end of last year
                                    ,356.00     73.00                         791.00             6,610.00        4.00          4.00          2.00Add:Retrospective adjustmentcaused by merger of entitiesunder common controlAdd: Change of accounting
       policyCorrecting of previous errors
         Other
    II.Balance at the beginning of      169,142 39,742,4                         26,704,              -116,02 -515,91 -1,373,51 117,673,58
    current year                        ,356.00     73.00                         791.00             6,610.00        4.00          4.00          2.00
    \ III.Changed in the current                  48,311.0                                           -247,33                               -194,705.0
                                                                                                             4,315.00
    year                                                0                                                 1.00                                         0
                                                                                                 -247,33                               -247,331.0
    (I) Net profit
                                                                                                      1.00                                         0
    (II)Other misc.income                     48,311.0                                                       4,315.00                  52,626.00
                                                       深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                                  0
                                            48,311.0                      -247,33                     -194,705.0
    Total of (I) and (II)                                                               4,315.00
                                                  0                          1.00                             0(III) Investment or decreasingof capital by owners1. Capital inputted by owners2.Amount of shares paid andaccounted as owners’ equity3. Other
    (IV)Profit allotment1.Providing of surplus reserves2.Providing of common riskprovisions3.Allotment to the owners (orshareholders)
       4.Other(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
    (VII)Other
    IV. Balance at the end of this    169,142 39,790,7          26,704,       -116,27 -511,59 -1,373,51 117,478,87
    term                              ,356.00     84.00         791.00       3,941.00       9.00   4.00         7.00Legal representative :Hu YongfengnPerson-in-charge of the accounting work:Zhang JinliangPerson-in -charge of the accounting organ:Ren Changzheng
                                                                     深圳中冠纺织印染股份有限公司 2013 半年度报告全文8. Statement of change in owner’s Equity of the Parent CompanyPrepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.Amount in this period
                                                                                                                     Unit:RMB
                                                                           Amount in this period
                                                                Less:                                 Common                    Total of
                 Items                  Share      Capital                 Specialized    Surplus                 Attributabl
                                                               Shares in                                risk                    owners’
                                       Capital     reserves                 reserves      reserves                 e profit
                                                                stock                                 provision                 equity
                                      169,142,35 31,606,598                              26,309,287               -93,361,49 133,696,74I.Balance at the end of last year
                                            6.00         .00                                    .00                     7.00         4.00
    Add:     Change     of   accounting
       policyCorrecting of previous errors
         Other
    II.Balance at the beginning of 169,142,35 31,606,598                                     26,309,287               -93,361,49 133,696,74
    current year                                6.00         .00                                    .00                     7.00         4.00
                                                                                                                  -3,659,586. -3,659,586.III.Changed in the current year
                                                                                                                          00             00
                                                                                                                  -3,659,586. -3,659,586.
    (I) Net profit
                                                                                                                          00             00
    (II)Other misc.income
                                                                                                                  -3,659,586. -3,659,586.Subtotal of (I) and (II)
                                                                                                                          00             00(III) Investment or decreasing ofcapital by owners1. Capital inputted by owners2.Amount of shares paid andaccounted as owners’ equity3. Other
    (IV)Profit allotment1.Providing of surplus reserves2.Providing of common riskprovisions3.Allotment to the owners (orshareholders)
                                                                     深圳中冠纺织印染股份有限公司 2013 半年度报告全文
       4.Other(V) Internal transferring ofowners’ 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 31,606,598                             26,309,287               -97,021,08 130,037,15
    term                                        6.00         .00                                   .00                      3.00        8.00Amount in last year
                                                                                                                    Unit:RMB
                                                                            Amount in last year
                                                                Less:                                Common                    Total of
                 Items                  Share      Capital                 Specialize    Surplus                 Attributabl
                                                               Shares in                               risk                    owners’
                                       Capital     reserves                d reserve     reserves                  e profit
                                                                stock                                provision                 equity
                                      169,142,35 31,606,598                             26,309,287               -90,792,58 136,265,65I.Balance at the end of last year
                                            6.00         .00                                   .00                      3.00        8.00
    Add:     Change     of   accounting
       policyCorrecting of previous errors
         Other
    II.Balance at the beginning of 169,142,35 31,606,598                                    26,309,287               -90,792,58 136,265,65
    current year                                6.00         .00                                   .00                      3.00        8.00
                                                                                                                 -2,568,914. -2,568,914.III.Changed in the current year
                                                                                                                          00            00
                                                                                                                 -2,566,647. -2,566,647.
    (I) Net profit
                                                                                                                          00            00
    (II)Other misc.income                                                                                         -2,267.00    -2,267.00
    Subtotal of (I) and (II)                                                                                        -2,568,914. -2,568,914.
                                                            深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                                                                                     00         00(III) Investment or decreasing ofcapital by owners1. Capital inputted by owners2.Amount of shares paid andaccounted as owners’ equity3. Other
    (IV)Profit allotment1.Providing of surplus reserves2.Providing of common riskprovisions3.Allotment to the owners (orshareholders)
       4.Other(V) Internal transferring ofowners’ 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 31,606,598                 26,309,287          -93,361,49 133,696,74
    term                                      6.00        .00                        .00               7.00        4.00Legal representative :Hu YongfengnPerson-in-charge of the accounting work:Zhang JinliangPerson-in -charge of the accounting organ:Ren Changzheng(III)Basic Information of the CompanyShenzhen Victor Onward Textile Industrial Co., Ltd. (hereinafter referred to as "the Company"), grew out
                                                        深圳中冠纺织印染股份有限公司 2013 半年度报告全文of the Xingnan Printing Factory Co., Ltd, founded in 1980, was the first wholly foreign-owned enterprisein Shenzhen. In April 1984, Xingnan Printing Factory Co., Ltd was changed into foreign joint venture, andwas renamed Shenzhen Victor Onward Textile Industrial Co., Ltd. . On November 19, 1991, the Companywas reorganized into a joint stock limited company and renamed Shenzhen Victor Onward TextileIndustrial Co., Ltd. pursuant to the approval of Shenzhen Municipal Government.The domestically listed RMB ordinary shares ("A shares, Stock code: 000018" ) and domestically listedforeign investment shares ("B shares ,stock code: 200018") issued by the Company were listed onShenzhen Stock Exchange in 1992.By June 30, 2013, 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-shares3,141,032 shares, accounting for 25.51% of thetotal equity, is the controlling shareholder of the company, Union Development Group Co., Ltd.(hereinafter referred to Union Group)holding circulating A –share 5,681,089 shares, accounting for 3.36%of the total equity, Union Group holds 31.32% of equity of Union Holdings and has the right to controlUnion Holdings, thus Union Group is the actual controller of the Company.
    By June 30,2013, Victor Onward printing and dyeing (Hong Kong) Co., Ltd. (hereinafter referred toas "Hong Kong Victor Onward"), Hong Kong Victor Onward Digital Printing Co., Ltd. (hereinafter referredto as "Victor Onward Digital Printing"), Shengzhong Industrial Co., Ltd. (hereinafter referred to as"Shengzhong") ,Shenzhen East Asia Victor onward Holding (hereinafter referred to as “East AsiaCompany)and Shenzhen Nanhua Printing and Dyeing as well as its wholly-funded subsidiary NanhuaXingye Co., Ltd (hereinafter referred to as "Nanhua Xingye") are all subsidiaries of the Company.The Group is mainly engaged in the production and processing (printing and dyeing) and sales of varioushigh-grade fabrics of pure cotton, pure linen, polyester-mixed cotton, linen cotton and mixed fiber andfinished garments. Registered address: 26 Kuipeng Road, Kuiyong Town, Longgang District, ShenzhenLegal Representative: Hu Yongfeng(IV)Principal accounting policies, accounting estimates and early errors1.Basis for the preparation of financial statements
      The financial statements of the Group were prepared on basis of continuous operation and accordingto actual transactions and matters, Accounting Standards for Business Enterprises promulgated by Ministryof Finance and relevant regulations and the accounting policies and estimation stated in Note IV -Important Accounting Policies and Accounting Estimate.
                                                           深圳中冠纺织印染股份有限公司 2013 半年度报告全文2. Statement on complying with corporate accounting standardsThe 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 cash flows,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 Gregorian calendar.4. Accounting standard money
    The Company and its subsidiary Nanhua Company changed their base currency for bookkeeping fromHKD into RMB because they received and made cash payment in RMB.5. Accounting process method of enterprise consolidation under same and different controlling.(1)The compiling method of combined financial statement(1). Principles to determine the scope of merger:The Group will include the subsidiaries which have actual controlling right and the subjects which havespecial 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, the majorinternal transaction in the scope of consolidation and transactions shall be offset. The part of shareholdersequity of the subsidiary which does not belong to the parent company, shall be individually listed as equityof minority shareholders in the consolidated financial statement.If the accounting policy and accounting period of the subsidiary and the company are not consistent, whencompile consolidated financial statement, the financial statement of the subsidiary shall be adjustedaccording to the accounting policy and accounting period of the company.
    For the subsidiary obtained by corporate merger under different control, when prepare consolidatedfinancial statements, the individual financial statement shall be adjusted on the basis of fair value of the netassets on the purchase day; for the subsidiary obtained by corporate merger under same control, it will betaken as having been existed at the year beginning, its assets, liabilities, operating results and cash flowshall be consolidated in the financial statement according to original book value since the year beginning ofthe consolidation period.6. Recognition Standard of Cash & 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 strong
                                                          深圳中冠纺织印染股份有限公司 2013 半年度报告全文liquidity that are readily convertible to known amount of cash and subject to insignificant risk of changesin value.7. Foreign currency Convert(1)Foreign currency Transactionshe foreign currency transactions the Group were accounted according to the amount of foreign currency onthe first day of the current month converting to the amount of bookkeeping currency. On the balance sheetdate, foreign currency monetary items would be converted into RMB by using the spot exchange rate onthe balance sheet date, the conversion differences produced shall be directly included in the current lossand gain except the exchange differences produced by foreign currency special loans borrowed forpurchasing or production of the assets which meet the capitalization conditions. The foreign currencynon-monetary items measured by fair value shall be converted into RMB by the spot exchange rate on thefair value date, the conversion differences produced shall be directly included in current loss and gain asfair value changes. The foreign currency non-monetary items measured by historical costs shall beconverted by using the spot exchange rate on the transaction date, and its RMB amount will not bechanged.(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 expensesin the 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.From January 1 of the report year, the Company and its subsidiary Nanhua Company changed their basecurrency for bookkeeping from HKD into RMB because they received and made cash payment in RMB.At the time of change, all items were translated into items stated in base currency for bookkeeping at thespot exchange rate quoted on the day of change. The amount after translation was taken as historical costcalculated in new base currency for bookkeeping.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.
    8. Financial instruments(1) Classification of financial instruments: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: mainlyrefer to the financial assets for sale in short term, which shall be listed in balance sheet in transactionalfinancial assets.The expired investments held: refer to the non-derivative financial assets which have fixed expire date and
                                                           深圳中冠纺织印染股份有限公司 2013 半年度报告全文fixed or determined recovering amount, and the management level has the intention or ability to hold theassets.Receivables: refer to the non-derivative financial assets which have no quotation in active market but havefixed or determined recovering amount, 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 salewhen they are initially confirmed, and the financial assets which are not divided into other categories.(2) Measurement of financial instrumentsFinancial 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 beconfirmed 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 financial assets measured by fair value and the changes included in the current loss and gain, on thefinancial sheet date, the Group will check the book value of other financial assets on the balance sheet date,if there is objective evidence showing that impairment has happened on a financial asset, provision for theimpairment shall be drown.
    (1) 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
                                                            深圳中冠纺织印染股份有限公司 2013 半年度报告全文financial assets, and did not give up on the control of financial assets, in accordance with their continuinginvolvement in transferred financial assets recognized on financial assets, and confirm the liabilitiesaccordingly.
    Total transfers of financial assets to meet the termination of recognition criteria, the book value of thetransferred financial assets, and received by the transfer price and the original included in othercomprehensive income difference between the sum of the changes in the fair value of the cumulativeamount of included in the current profits and losses.
    Financial assets part transfer meet terminated confirmed conditions of, will by transfer financialassets overall of book value, in terminated confirmed part and is not terminated confirmed part, inaccordance with their of relative fair value for sharing, and will due to transfer and received of on priceand the should sharing to terminated confirmed part of original meter into other integrated income of fairvalue changes Trojan amount of and, and sharing in book amount of difference meter into Dang periodprofit and loss.(4)The conditions to stopping the financial liabilitiesThe financial liabilities of our Group shall be classified into the financial liabilities or other ones which aremeasured at their fair values and the variation of which is recorded into the profits and losses of the currentperiod when they are initially recognized.The financial liabilities, which are measured at their fair values and the variation of which is recorded intothe profits and losses of the current period, including transactional financial liabilities and the financialliabilities designated which are measured at their fair values and variation of which is recorded into theprofits and losses of the current period when they are initially recognized, shall be made subsequentmeasurement on its financial assets according to their fair values, and the profits and losses arising fromthe change in the fair value and the dividends and interests expenses related to the financial liability shallbe 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 theactual interest rate method for other financial liabilities.When financial liabilities present obligations in whole or in part have been discharged, terminatingconfirmed part of the financial liabilities or obligations have been discharged. Terminating confirmed partof the difference between the book value 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 todetermine the fair values thereof. In the active market, the quoted prices of our Group for the financialassets it holds or the financial liabilities it plans to assume shall be the present actual offer for thecorresponding fair values of assets or liabilities, while the quoted prices of our Group for the financialassets it plans to acquire or the financial liabilities it has assumed shall be the available charge for thecorresponding fair values of assets or liabilities. Where there is no available offer or charge for a financialasset or financial liability, but there is no any significant change to the economic environment after thelatest transaction day, we shall adopt the market quoted price of the latest transaction to determine the fairvalue of the said financial asset or financial liability.2.Where there is no active market for a financial instrument, we shall adopt value appraisal techniques to
                                                              深圳中冠纺织印染股份有限公司 2013 半年度报告全文determine its fair value. The value appraisal techniques mainly include the prices adopted by the parties,who are familiar with the condition, in the latest market transaction upon their own free will, the currentfair value obtained by referring to other financial instruments of the same essential nature, the cash flowcapitalization method and the option pricing model, etc.(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 datethe carrying amount of other financial assets. If there is any objective evidence that a financial asset isimpaired, the Group provides for such impairment losses.If there is objective evidence that an impairment loss has been incurred on financial assets carried atamortized cost, the amount of the loss is measured as the difference between the asset’s carrying amountand the present value of estimated future cash flows (excluding future credit losses that have not beenincurred). If in a subsequent period, the amount of the impairment loss increases and the increase can berelated objectively to an event occurring after the impairment is recognized, the previously recognizedimpairment loss is reversed by adjusting the allowance account. The amount of the reversal is recognized inthe income statement.If the fair value of an available-for-sale financial asset incurred a significant or prolonged decline, thecumulative 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 impairmentloss has been recognized on an available-for-sale debt instrument and the fair value of the debt instrumentincreases in a subsequent period whereby the increase can be objectively related to an event occurring afterthe 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 ofthe equity instrument increases in a subsequent period, the impairment loss is directly recognized inshareholders’ equity.9. 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 foraccounts receivable: the debt or others can't be repaid in the foreseeable period, e.g. the debtor units havebeen closed, revocation, bankruptcy, insolvent, severe insufficient cash flow or the occurrence of naturaldisasters; the repayment obligations are delayed and failed to be performed beyond 3-year by the debtentities; 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 debtpreparation.
                                                                            深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                                                       Account receivable with special account receivableJudgment criteria or amount standard of material specific amount or
                                                                       exceeding RMB 1 million is viewed as material accountsamount criteria
                                                                       receivable.
                                                                       Provision Had debt preparation in accordance with theProvision method with material specific amount and provision of
                                                                       difference of present value of future cash flow below thespecific bad debt preparation
                                                                       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%Accounts on percentage basis in group:□ applicable √not applicableAccounts on other basis in group:√applicable□ not applicable
                         Name                                                               Notes
                                                       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.
      (2) Account receivable with non-material specific amount but specific bad debt preparation
    Reason of specific bad debt preparation       Accounts receivable with non-material specific amount and being not able to relent
    provision:                                   its risk character by provisioning bad debt preparation in accordance with portfolio
                                                                       深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                           Bad debt preparation will be provisioned in accordance with the difference of presentProvision method of bad debt preparation
                                           value of its future cash flow below its book value.
    10.Inventory(1)Inventory classificationThe inventories of the Company include raw materials, packing articles, low-value and easily-wornarticles ,Work-in-process and stock goods ,etc..(2)Pricing method of stock delivered
    Stock delivered is measured according to weighted average method.(3)Confirmation basis of stock net realizable value and withdrawal method of inventory falling price reserves.The inventory at year end can be priced by depending on which is lower between cost and realizable net value ifthe inventory were damaged or full or partly unused or the sale price lower than cost and other reasons. Theprovision for devaluation of finished products and big raw materials shall be drown according to the differencewhich the cost of individual inventory item higher than the realizable net value; other raw materials with largequantity and low unit price shall be drown provision for devaluation according to categories.Goods in stock, products in production and other materials directly for the sale, the amount of the realizable netvalue shall be determined according to the estimated sale price deducting the estimated sale expenses and relevanttaxes; the amount of realizable value of material inventory for production shall be determined according to theestimated sale value of finished products deducting the estimated cost which will happen before the completionand estimated sale cost and relevant taxes. The inventory holding for the implementation of sale contract orservice contract, the realizable net value shall be accounted on the basis of contract price; if the quantity ofinventory held by enterprise is bigger than the quantity ordered in the sale contract, the realizable net value of theexcess inventory shall be accounted on the basis of general sale price.(4)Inventory systemInventory system adopts the perpetual inventory method.(5)Amortization method of consumption goods with low value and wrap pageConsumption goods with low value: Consumption goods with low value adopt one time amortization methodwhen used. Packing:Wrap page: Wrap page adopts one time amortization when used.
                                                                  深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    11.Long-term equity investment(1)Investment cost confirmationLong-term equity investments mainly include the equity investments which are held by the Group and the onesthat the units being invested can be controlled or jointly controlled, or the equity investments which have notquotation in active market and the fair value can not be reliably measured. The long-term equity investmentsobtained through merger of companies under same control the merger were the owner's equity book value of theshares as a long-term equity investment of initial investment cost. The long-term equity investments obtainedthrough merger of companies under different control shall make the fair value which made on the merger(purchase) to pay the control of the assets or liabilities as the merger cost. Apart from the long-term equityinvestments stated above, the long-term equity investment obtained by cash, the initial investment obtained bycash will be determined according to the price actually paid, initial investment costs include the direct costs, tax,and other necessary expenses to obtaining long-term investment; the initial investment will be determinedaccording to the fair value of the equity securities issued; the long-term equity investments invested by investors,the initial investment 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 cost shall bedetermined 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 equity method whenprepare the consolidated financial statements; the joint venture and joint venture investment using the equitymethod; for the long-term equity investments which have no control or joint control or significant influence andno price in an active market, the method of cost shall be adopted to account; the long-term equity investmentswhich have no control or joint control or significant influence, there are quotations in an active market and the fairvalue can be reliably measured, shall be accounted as financial assets for sale. When using the method of costaccounting, the long-term equity investments were priced by the initial investment costs.Additional investment torecover the cost of long-term equity investment. When using the equity method accounting, the current investmentgains and losses are the share of net losses and gains to be owned or shared and achieved in the current year by theunit being invested. When determining the share to be shared by the unit being invested, on the basis of the fairvalue of the identifiable assets, according to the accounting policy and accounting period of the Group, offsettingthe internal transaction loss and gain and the part that the equity proportion attributable to the joint enterprise andunited enterprise, and confirm the net profit of the unit being invested after profit adjustment. For the long-termequity investments on joint venture enterprises and joint owned enterprises held before the first implementationdate, if existing the debit difference relating to the equity investment, the debit difference of equity investment,after deducting the investment loss and gain according to the original remained period, should be confirmed asinvestment gains and losses. The Group shall adopt the cost method to calculate for those invested units that neverhave the jointed control or significant impacts due to the investment reduced, and a long-term equity investmentfor which there is no quoted price in the active market and whose fair value cannot be reliably measured; Also, thecost method shall be adopted to calculate for the long-term equity investment able to be implemented andcontrolled to the invested units due to the investment supplemented; Moreover, the equity method shall beadopted to account for performing the jointed control or significant impacts to the invested units but no control
                                                                 深圳中冠纺织印染股份有限公司 2013 半年度报告全文formed due to the investment supplemented, or without control to the invested units but able to implement thelong-term equity investment 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 equity method forcalculating the long-term equity investment which is recorded into the owner's equity due to other changes exceptfor the net profits or losses of the invested units, the initial parts recorded into the owner's equity shall betransferred into the investment returns of the current period when disposal of the investment.(3) Confirm the basis that has common control and major infection upon invested unit.Joint control refers to the control that common control on some economic activities according to contract. Thereferences for the determination of common control are the business activities which any operating party can notbe controlled independently; the decisions relating to basic operating activities of the joint venture enterprise areto be agreed by all joint parties. Significant impact refers to having the right to participate in decision making onfinancial and 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 more but less than50% of the voting shares directly owned by the Group or owned through subsidiaries, unless there is clearevidence that under that circumstance the production operating decision can not be participated and no majorinfluence will formed.(4)Depreciation testing method and depreciation reserve withdrawal method.
    The Group conducts inspection on long-term equity investments, fixed assets, construction in progress,intangible assets with limited service life on every balance sheet date. when exist the following signs showing thatthe assets may have impairment, the Group will conduct impairment test. The intangible assets without certainservice life, whether it has impairment signs, impairment tests shall be conducted at the end of each year. If therecoverable amount of single asset can not be tested, it shall be tested on the basis of the asset group the assetbelong to or the asset combination.After the impairment test, if the book value of the asset exceeds its recoverable amount, the deficiency isrecognized as the impairment loss, upon the confirmation of the above assets, they will not be transferred back inthe following accounting period. The recoverable amount of the asset refer to the net amount of the fair value ofthe asset deducting disposal cost of assets and the present value 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 than the decline dueto time passage or normal use.(2) The economic, technical or legal environment of the company and the market of the assets will havesignificant change in the current period or in the near future, therefore negative impact on the enterprise.(3) Market interest rates or other market return rate of investment in the current period have been increased, thusaffecting the discount rate of the predicted cash flow, and resulting in the significant reduction in the amount ofrecoverable 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 has been lower thanor less than what expected, such as the net cash flow created by assets or the operating profits (or losses) realized
                                                                      深圳中冠纺织印染股份有限公司 2013 半年度报告全文are far below (or above)the expected amount.(7) Other signs showing the assets may have or have had impairment.12. 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 include the cost of thepurchase price, related taxes and fees and other expenses which can be directly attributable to the assets; the costsof investment real estate self constructed include the necessary expenses to construct the asset to reach thepredicted use state.The Group adopts the cost method to conduct follow-up measurement on investment real estates are accounteddevaluations and amortized. The expected service life, net residual rate and value depreciation rates of investmentreal estate are as follows:
    Type                                     Expected useful     Estimated residual value rate Annual depreciation r
                                              life(Year)                                            ate(%)
                                   20-50 years                                        0%                2%-5%Real estate inHongkong
                                   20-30 years                                       10%               3%-4.5%Real estate inChina
       If the investment real estate is changed to self use, since the date of change, investment real estate shall beconverted into fixed assets or intangible assets. The function of self-use real estate is to earn rent or capitalappreciation, then since the date of change, the fixed assets or intangible assets shall be converted into investmentreal estate. When the conversion happens, the book value before the conversion will be the book value after theconversion.When the real estate investment is disposed or will never be used, and economic interests can not be obtainedfrom the disposal, the confirmation of the investment real estate shall be terminated. The amount of the incomefrom the sale, transfer, disposal of the investment in real estate deducting the book value and related taxes and feesshall 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.
                                                                          深圳中冠纺织印染股份有限公司 2013 半年度报告全文
       13. Fixed assets(1)Confirmation conditions of fixed assets
       Fixed assets refer to the tangible assets which have the following characteristics at the same time, namely,held for production of goods, providing services, leasing or operation and management, and the life span shall notbe more than a year, and the unit value is high. Classification of fixed assets: houses and buildings, machinery andequipments, transportation equipments, office equipments and others. The fixed assets shall be measuredaccording to the actual cost to obtain them, including, the cost of purchasing the fixed assets including thepurchase price, value-added tax, import tariffs and other related taxes, and other expenses happened to reach thepredicted use state; the cost of building the fixed assets, which are composed of the expenses to reach thepredicted use state of the assets; the fixed assets invested by investors, the value on the contract or agreement shallbe the accounting value, but if the contract or agreement value is not fair, the fair value shall be accounted; thefixed leased assets, the lower amount of the fair value of leased assets and the present value of the lowest leasepayment shall be as the accounting value. Follow-up expenditures on fixed assets, including major repair expenses,expenses on updated improvement and other, To confirm compliance with the conditions of fixed assets, it shall
    be included in the cost fixed assets, the recognition of book value of replaced the part shall be terminated;            If notmeeting the conditions of confirming fixed assets, they should be included in the current period.(2)Fixed assets depreciation method
       In addition to the fixed assets which depreciation and impairment had already fully accounted and the landswhich are separately accounted, the Group accounts depreciation on all fixed assets. The method of averagenumber of years will be used when accounting depreciation which will be included in the costs and expenses ofthe relevant assets. The predicted net residual rate, classified depreciation years and depreciation rates are asfollows:
    Type                                          Evpected useful    Estinated residual value rate   Annual depreciation rate(%)
                                                  life(Year)Real estate in
                                 20-50 years                                               0% 2%-5%HongkongReal estate in
                                 5-14 years                                               10% 6%-18%China
    Machinery and equipment          5 years                                                  10% 18%
    Transportation equipment         4-5 years                                                10% 18%-22.5%
    Office equipment and other       5 years                                                  10% 18%(3)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, the predicted net
                                                                  深圳中冠纺织印染股份有限公司 2013 半年度报告全文residual value and depreciation method, if changes happen, then it shall be treated as accounting estimate.(4)Other
      At the end of each year, the Group shall recheck the predicted service life of fixed assets, the predicted netresidual value and depreciation method, if changes happen, then it shall be treated as accounting estimate.When the fixed assets were disposed, or expected to be used or the disposal can not have economic interests, theconfirmation of the fixed assets shall be terminated. The income from the sale, transfer or damage of the fixedassets deducting the book value and related taxes shall be included in the current loss and gain.
    14. Projects under construction(1)Categories of projects under constructionThe price of the construction project: determine the costs according to the actual expenditure on the project.Measure the price of the self-operated projects according to the direct materials, direct wages, direct constructioncosts; Measure the turnkey projects according to the price should be paid on the project; measure the project ofequipment installation according to the value, of the equipment, installation costs, and the expenditures on the trialoperation to determine the project costs. The costs of projects under construction also include the cost ofborrowing to be capitalized and exchange gain and loss.(2)Standard and timing for transferring of projects under construction to fixed assetsThe 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.
      15. Borrowing cost(1)Principle of the recognition of capitalized borrowing costs
    The assets which meet capitalization conditions, refer to the fixed assets, investment real estates and otherinventories which are constructed for a long time (usually more than one year) to achieve the intended use or saleof state to.(2)Temporarily suspension of capitalizing period
    If meet the capitalization conditions or non-normal breaks occurred in the course of production and the breaktime is more than three months, then the capitalization of borrowing costs shall be suspended; when theacquisition or construction or production meet the conditions of capitalization and achieve the predicted use orsale state, Asset acquisition or production activities began.
                                                                    深圳中冠纺织印染股份有限公司 2013 半年度报告全文(3)Calculating of borrowing expense capitalizing
    Borrowing costs include interest on borrowings, amortization of discount or premium, as well as the supportingcosts and exchange difference due to foreign currency borrowing. The borrowing costs which can be directlyattributed to capitalized condition, and taken place in the capital expenditure, borrowing costs have taken place, inorder to meet the assets available for sale or purchase of the necessary state of construction or productionactivities, the capitalization begins; when the construction or purchase of the conditions of production in line withthe capital assets reached the sale state, the capitalization should stop. And the rest borrowing costs should berecognized as expenses in the current period.
    Borrowing costs include interest on borrowings, amortization of discount or premium, as well as the supportingcosts and exchange difference due to foreign currency borrowing. The borrowing costs which can be directlyattributed to capitalized condition, and taken place in the capital expenditure, borrowing costs have taken place, inorder to meet the assets available for sale or purchase of the necessary state of construction or productionactivities, the capitalization begins; when the construction or purchase of the conditions of production in line withthe capital assets reached the sale state, the capitalization should stop. And the rest borrowing costs should berecognized as expenses in the current period.
    16.Intangible assets(1)Pricing of intangible assets
    The intangible assets of the Group include land use rights and computer software. Including: For theintangible assets purchased, the actual purchase price was the actual cost; For the intangible assets invested byinvestors, The actual cost of intangible assets invested by investors, shall be determined according to the contractor agreement value, but if the contract or agreement values are not fair, the actual costs shall be determinedaccording to the fair value.(2)Estimation of service life of intangible assets with limited service life
    Since the date of selling land use rights, they are amortized according to the years sold; patent technology,non-patent technology and other intangible assets are amortized in accordance with the expected number of years,the benefited years specified in the contract and the effective length according to law. The amount to be amortizedwill be included in the related asset costs and current loss and gain according to the benefited targets.
    The predicted service life of the intangible assets and amortization methods should be rechecked andadjusted at the end of each year. Recheck the intangible assets with uncertain service life in each accountingperiod should be rechecked, if there is evidence showing that the service life of the intangible asset is limited, thenestimate its service life and amortized it within the predicted service life.(4)Provision for impairment of investment assetsProvision for impairment of investment assets Refer to 11. Long-term equity investment (4) - Methods ofImpairment Testing and Provision for Impairment for the details of methods of impairment testing and provision
                                                                  深圳中冠纺织印染股份有限公司 2013 半年度报告全文for impairment.17.Long-term amortization expensesThe long-term expenses of the Group to be amortized refer to all the expenses already paid but should beundertaken in the current period or in the coming period with amortization period more than 1 year (not including1 year), the expenses will be amortized averagely in the benefit period. If the long-term prepaid expenses can notbenefit from subsequent accounting period, then all amortization value of the project not amortized should betransferred to the current loss and gain.18.Predicted liabilities(1)Recognition of Predicted liabilities
    When the external security, commercial acceptance bill discount, pending litigation or arbitration, productquality assurance or business related matters subject to the following conditions at the same time, the Group willidentify it as liabilities: the obligation is a present obligation of the Group; the enforcement of the obligation islikely to lead to the outflow of economic benefits; the amount of the obligation can be measured reliably.(2)Accounting of Predicted liabilities
    Predicted liabilities shall be conducted initial measurement according to the best estimates of related existingliabilities, and comprehensively consider risks, uncertainties and the time value of money and other factorsrelating to contingent events. Time value of money has the greatest influence, the best estimates shall bedetermined by future cash outflow. On the balance sheet, recheck the book value of predicted liabilities, adjust thebook value to reflect the current best estimates if there are any changes.19. Revenues(1)Recognition time for sales of goods
    When the Group had transferred the ownership of the risks and rewards of the commodities to the buyer, theGroup does not keep the management right relating to ownership and does not implement effective control on thecommodities sold out, the income amount can be reliably measured, and the related economic benefit willpossibly flow into the enterprise, and when the related costs may happen or had happened can be measuredreliably, the realization of the commodity sold out should be confirmed.(2)Incomes from transferring asset use rightThe economic interests relating to transaction can flow into the company, and the relevant incomes and costs canbe reliably measured, the sales income of transferring assets use right shall be confirmed.
                                                                 深圳中冠纺织印染股份有限公司 2013 半年度报告全文20. Governmental subsidy(1)Categories
    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 according to the amount received; thesubsidies allocated according to rated standards, they shall be measured according to the amount receivable. Ifgovernment subsidies are non-monetary assets, they shall be measured according to fair value; if the fair value cannot be reliably measured, they shall be measured according to nominal amount (1 yuan).(2)Accounting treatmentThe government subsidies relating to assets shall be recognized as deferred income, and be averagely distributedwithin the service life of relevant assets, and be included in the current loss and gain. If the government subsidiesrelating to income are used to compensate the related expenses and losses, they shall be confirmed as deferredincome and be included in the current loss and gain in the period of confirming relevant expenses. If used tocompensate the relevant expenses and losses happened, they shall be included in the current loss and gain.
    21. Deferred income tax assets/Deferred income tax liability
    (1)Confirmation of deferred income tax assets
    (1)Confirmation of deferred income tax assetsThe Group shall determine the deferred income tax assets produced by the deductible temporary differenceswithin the amount limit of payable taxes which are likely used to deduct the temporary differences. The bookvalue of the recognized deferred income tax assets shall be deducted when the deferred income tax assetsproduced by the deductible temporary differences within the amount limit of payable taxes which are likely usedto deduct the temporary differences. When enough payable tax can be obtained, the deducted amount shall betransferred back. On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall bemeasured by the predicted application rate.
    (2) The confirmation of deferred income tax liabilityDeferred income tax assets and deferred income tax liabilities shall be confirmed according to the differencebetween the tax base of assets and liabilities and their book value.22.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 lease period, theGroup included the related asset cost and current losses and gains by the straight-line method during the leaseperiod. The rent of the Group will be confirmed as income during the lease period by the straight-line method.
                                                                深圳中冠纺织印染股份有限公司 2013 半年度报告全文(2)Accounting treatment of financing leasing
    Financing lease essentially refers to the lease that transferred all the risks and rewards relating to assetownership. As the lessee, on the beginning date of lease, the Group took lower one in the cash of the fair valueand the lowest lease payment as the book-keeping value of the fixed assets leased in by financing, and the lowestlease payment as the accounting value of the long-term payment, and the difference between the them will berecorded as financing costs not confirmed.23.Other principal accounting policies, estimations and preparation method of financial statements1)GoodwillGoodwill refers to the difference of equity investment under the control of the same cost or merger of enterprisesshould enjoy more than the cost or a merger of the investment was the purchase of flats or net assets in order toobtain.The goodwill related to subsidiaries shall be individually listed in the consolidated financial statements, thegoodwill related to joint companies and associated companies shall be included in the book value of long-termequity investments.2)Employee’s salary
    During the accounting period, workers’ salary shall be recognized as liability, and be included in relevantcost and expenses according to the beneficiary target of the service provided by workers, and shall be included inthe relevant cost and expenses. The compensations for the cancelation of workers’ labor relationship shall beincluded in the current loss and gain.Including wages, bonuses, allowances and subsidies, welfares, social insurance and housing accumulation fund,union fee and workers’ education fund, and other related expenses related to obtain services provided byemployees.If decide to relieve the labor relationships with employee before the employment contracts become mature, orencourage workers to voluntarily accept the compensation proposal due to redundancy, while the Group has havea formal plan for termination of labor relationship or have proposed the voluntary redundancy scheme which willbe implemented, and the Group is unable to unilaterally withdraw the plan on the cancellation of laborrelationship or the layoff proposal, the anticipated debts, confirmed to be caused by the compensation due torelieve of labor relationships with workers, shall be recorded into the profits and losses of the current period.3)Accounting of income tax
    The accounting of income tax of the Group shall use the method of debt of balance sheet. The income taxexpenses include current income tax and deferred income tax. The current income tax and deferred income taxrelating to the transactions and events directly included in shareholders equity shall be included in shareholdersequity, except the book value of deferred income tax adjustment goodwill, the rest current income tax and deferredincome tax or income shall be included in the current loss and gain.
                                                                    深圳中冠纺织印染股份有限公司 2013 半年度报告全文Current income tax cost refers to the amount of payable income tax which shall be paid to tax departmentaccording to the current transactions and events determined according to tax provisions; deferred income taxrefers to difference between deferred income tax balance sheet debt in accordance with the law shall berecognized deferred income tax assets and deferred income tax liabilities in the amount originally confirmed.4)Corporate consolidation
    Corporate consolidation refers to two or more separate companies merge and form a transaction or event ofreport subject. The consolidation day or purchase day or the consolidation date of obtaining the assets or liabilities,shall be confirmed as the date of obtaining the control right of the party being merged or purchased.
    The corporate consolidation under same control: the assets and liabilities obtained by the consolidation party inthe merger shall be measured according to the book value of merged party on the consolidation day. Thedifference between the book value of net assets obtained by the consolidation party and the book value of theconsolidation price paid, the capital public reserve shall be adjusted; if the capital public reserve is not enough tobe deducted, the retained earnings shall be adjusted.
    The corporate consolidation under different control: the consolidation cost is the fair value of equity stocksissued and the assets and debts paid to obtain the control right of the purchased party on the purchase day. Thedifference between the consolidation cost and fair value of recognizable net asset, shall be confirmed as goodwill;if the consolidation cost is smaller than the fair value of recognizable net asset of the purchased party, thedifference shall be included in current loss and gain upon confirmation.(V)Taxation1.Main categories and rates of taxes
                   Taxes                                Tax references                    Applicable tax rates
                                              Income from sales of products and
                    VAT                                                           17%
                                                         processing
                Business tax                          Business income             5%
    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 applicable to branches and factories.The interest rate of corporate income tax of the company and subsidiaries in China mainland is 25%, according tothe State Council on December 26, 2007, of the [2007] No. 39 Notice on the Implementation of Enterprise IncomeTax Preferential Policies for the Transition, the enterprise income tax rate of the Company and the subsidiaries inChina mainland gradually transited from 15% to 25%, the company implement the transition rate of 25% in 2013the interest rate of the income from Hong Kong of the subsidiaries in Hong Kong is 17%.
                                                                                    深圳中冠纺织印染股份有限公司 2013 半年度报告全文3.OtherThe subsidiaries of the company in Hong Kong do not need to pay the domestic tax.
    (VI) Enterprise consolidation and combined financial statements
        1. Subsidiary(1)Subsidiary obtained through establishment or investment
                                                                                                                                   Unit:RMB
                                                                                                                                      After
                                                                                                                                      wrote
                                                                                                                                      down
                                                                                                                                     current
                                                                                                                                     period
                                                                                                                                     loss of
                                                                                                                                     minority
                                                                                                                                     sharehol
                                                                                                                                       ders
                                                                                                                          Amount      over
                                                                           Other
                                                                                                                          used to     equity
                                                                          projects
                                                                                                                           write     beginni
                                                                          balance
                                                                Actual                        Proporti Whether Interest    down      ng share
    Full                                                                    essential Holding
                     Registra             Register              capital                        on of   consolid   of        lost        of
    name of Subsidia                Busines              Busines              ly from proporti
                        tion                   ed               amounts                       voting ation of minority included minority
    subsidia ry type                   s                 s scope                net        on
                        place             capital                 of                          rights(% report sharehol       in      sharehol
    ry                                                                     investm      (%)
                                                                the end                          )      form      der     minority ders in
                                                                           ent to
                                                                                                                          sharehol     the
                                                                          subsidia
                                                                                                                            der      subsidia
                                                                             ry
                                                                                                                          interest ry from
                                                                                                                                       the
                                                                                                                                      parent
                                                                                                                                     compan
                                                                                                                                       y’s
                                                                                                                                     share ,B
                                                                                                                                      alance
                                                                                                                                        of
                                                                                                                                     Owner's
                                                                                                                                      equity
    Hong                                      2,400,0 Purchas
           Limited
    Kong                 Hong                 02         e of raw
           Compan               Trade                                         0.00     100%     100% Yes           0.00      0.00        0.00
    Victor               Kong                 (HKD material
           y
    Onward                                    )         s,
                                                                         深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Co.Ltd                                          marketi
                                                ng of
                                                printed
                                                and
                                                dyed
                                                woven
                                                fabrics,
                                                investm
                                                ent and
                                                holding
                                                business
                                                Sales of
                                                Corduro
    Shenzho                               1,000,0
          Limited                               y, dyed
    ng                  Hong              00
          Compan              Trade             cloth                 0.00   100%   100% Yes        0.00    0.00    0.00
    Compan              Kong              (HKD
          y                                     and
    y                                     )
                                                printed
                                                cloth
                                                Producti
                                                on and
                                      85,494, sales ofNanhua Limited
                    Shenzhe Product 700         printed
    Compan Compan                                                         0.00 69.44% 69.44% Yes        0.00    0.00    0.00
                    n           ion   (HKD cloth
    y         y
                                      )        and
                                                dyed
                                                cloth
                                                Sales of
                                                printed
    Xinye     Limited                     10,000
                    Hong                        cloth
    Compan Compan                 Trade   (HKD                           0.00   100%   100% Yes        0.00    0.00    0.00
                    Kong                        and
    y         y                           )
                                                dyed
                                                cloth
                                                Textilet,
                                                Printing
                                                and
                                                dyeingShenzh
          Limited                               industry
    en East             Shenzhe           3,000,0               1,530,0                              -1,373,5
          Compan              Trade             and                   0.00   51%     51% Yes                0.00    0.00
    Asia                n                 00                     00.00                                 14.00
          y                                     RawCo
                                                material
                                                s ,Machi
                                                nery
                                                equipme
                                                                       深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                                nt and
                                                other
                                                fabricsOther statements on Subsidiaries obtained through incorporation or investment:
    1.The Company invested HKD 2,400,002 in 1984 to establish Hongkong Victor Onward Company InHongkong.
    2.Shenghong Company Was established in November 9, 1993, registered capital 1 million HKD, HongkongVictor Onward Holding 100% equity.
    3.Nanhua Company was established in July 21 1988, registered capital 85.49 million HKD, By June 30,2013 the shareholding structure as follows:
    Name of investor                       Year-beginning amount Proportion %     Year-end amount              Proportion%
    Shenye Union (Hongkong) Co.,Ltd.                 26,127,180.32    30.56%            26,127,180.32                       30.56%
    The Company                                      46,868,194.54    54.82%            46,868,194.54                       54.82%
    Hong Kong Victor Onward Company                  12,499,325.14    14.62%            12,499,325.14                       14.62%
                  Total                          85,494,700.00    100.00%           85,494,700.00                   100.00%
    4.Xingye Company invested HKD 10,000 to establish industry Company in Hongkong in December 1996.Nanhua Company holding’s 100% of the equity.
    5.Shenzhen East Asia Company was established in February 28, 2007, registered capital 3 million yuan, thecompany invested 1.53 million yuan , holding 51% equity , Nanjiang East ASIA Textile Co., Ltd. Invested 1.47million yuan , holding 49% equity.2. Foreign currency translationThe spot exchange rate of HKD to RMB WAS 0.81090 at year beginning , and the spot exchange rate at year
    endwas0.79655 the approximate exchange rate of the sot exchange rate uses the current average exchange rate
    0.80373.
    (VII). Notes        to the major items of consolidated financial statement
    (I)Monetary Capital
                                                                                                          Unit:RMB
                                            Year-end balance                             Year-beginning balance
          Items                                 Exchange                                       Exchange
                             Foreign currency                    RMB        Foreign currency                      RMB
                                                   rate                                          rate
                                                                                        深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Cash                                       --               --               107,169.00           --                 --              66,684.00
    RMB                                       --               --               102,239.00           --                 --              62,790.00
    HKD                                        6,189.00 0.79655                    4,930.00           4,802.00 0.8109                    3,894.00
    Bank deposit                                --               --            47,992,355.00           --                 --          51,492,804.00
    RMB                                       --               --            21,352,709.00           --                 --          25,739,776.00
    HKD                                32,112,956.00 0.79655                 25,579,575.00       30,435,747.00 0.8109               24,680,347.00
    USD                                    171,569.00 6.1787                   1,060,071.00         170,660.00 6.29%                  1,072,681.00
    Other monetary capital                     --               --               668,943.00           --                 --             667,774.00
    RMB                                        --               --               668,943.00           --                 --             667,774.00
    Total                                      --               --            48,768,467.00           --                 --          52,227,262.00Notes of Monetary fund has not these conditions such as usage limitation for mortgage, pledge or frozen fund,stored overseas, with potential recovery risk.2.Bill receivable(1)Classification bill receivable
                                                                                                                                     Unit:RMB
                           Classification                                   Year-end balance                      Year-beginning balance
    Bank acceptance                                                                                   0.00                            1,500,000.00
    Total                                                                                             0.00                            1,500,000.003. Interest receivable(1)Interest receivable
                                                                                                                                     Unit :RMB
             Items                 Beginning of term              Increased this term       Decreased this term             End of term
    Fixed deposit interest                          38,414.00                         0.00                   38,414.00                        0.00
             Total                               38,414.00                                                38,414.00
         4. Account receivable
         1.Classification account receivables.
                                                                                                                                    Unit :RMB
          Classification                         Amount in year-end                                       Amount in year- begin
                                                                                深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                   Book Balance           Bad debt provision             Book Balance            Bad debt provision
                              Amount       Proportion(    Amount       Proportion( Amount Proportion(           Amount        Proportion(%
                                               %)                          %)                     %)                                )Receivables with majorindividual amount and baddebt provision provided
    individually receivables     3,715,397.0                 2,970,685.0                 3,715,397
                                              29.48%                       79.96%                 29.48% 2,970,685.00               79.96%
    with major individual                  0                           0                        .00amount and bad debtprovision providedindividuallyReceivables provided bad debt provision in groupsAccount receivable with
    minor individual amount      8,888,114.0                 8,888,114.0                 8,888,114
                                              70.52%                        100%                  70.52% 8,888,114.00                    100%
    but bad debt provision is              0                           0                        .00provided
                             12,603,511.                 11,858,799.                 12,603,51                 11,858,799.0
    Total                                          --                          --                      --                               --
                                      00                         00                       1.00                           0Category explanation of accounts receivable:Receivable accounts with large amount individually and bad debt provisions were provided√ Applicable □ not applicable
                                                                                                                 Unit:RMB
               Description                      Book balance           Bad debt provision         Rate(%)             Reason to provide
    Hong Kong Victor Onward Co., Ltd.                   1,606,281.00                 861,569.00                  53.64% Aging long
    Carnival Index International Ltd                    1,098,820.00                1,098,820.00                  100% Aging long
    TAI YANG ENTERPRISE CO.,LTD                         1,010,296.00                1,010,296.00                  100% Aging long
    Total                                               3,715,397.00                2,970,685.00            --                     --Account receivable on which bad debt provisions are provided on age basis in the group□Applicable √Not applicableReceivable 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 Group:□Applicable √Not applicableReceivable accounts with minor amount but were provided had debt provisions individually at end of period.√Applicable □Not applicable
                                                                                                                                Unit:RMB
                                                                 深圳中冠纺织印染股份有限公司 2013 半年度报告全文Description Of account
                             Book balance        Amount of bad debt           rate                Reason
       receivablesVEGA GARMENT
                                    768,189.00             768,189.00                100% Aging longCO.,Ltd.
    Fly Dragon International            573,677.00             573,677.00                100% Aging long
    Grateful Textiles Co.,Ltd.          566,801.00             566,801.00                100% Aging long
    World Fabrica (Int'l) Ltd.          465,241.00             465,241.00                100% Aging longShenzhen Fangzhou
                                    446,352.00             446,352.00                100% Aging longTextiles Co., Ltd.Ezhou Xiangya Clothing
                                    351,500.00             351,500.00                100% Aging longCo., Ltd.Tak Shing Buying Office
                                    333,584.00             333,584.00                100% Aging longLtd.
    Starline Textile Co.,Ltd.           332,316.00             332,316.00                100% Aging longShenye Union (HK)
                                    299,428.00             299,428.00                100% Aging longCo.., Ltd.
    Panther Fabric Ltd.                 295,161.00             295,161.00                100% Aging longChangshu Zhongjiang
    Clothing Import &                   270,134.00             270,134.00                100% Aging longExport Co., Ltd.Victor Onward
                                    245,621.00             245,621.00                100% Aging longTextile(HK)Co., Ltd.
    Nissho Iwai HK Co., Ltd.            215,282.00             215,282.00                100% Aging long
    Unimix Ltd.                         192,939.00             192,939.00                100% Aging longTai Hing Linings Co.,
                                    191,342.00             191,342.00                100% Aging longLtdHuman Changpuan
                                    185,981.00             185,981.00                100% Aging longGarmentNingbo Youngor
    Fukurmura Uniforms                  172,910.00             172,910.00                100% Aging longCo., Ltd.Win favour evelopment
                                    146,636.00             146,636.00                100% Aging longltd.
    Speedy Textiles Co.,                146,538.00             146,538.00                100% Aging long
    Lin Feng Textile Co.,               135,719.00             135,719.00                100% Aging long
    Lin Feng Textile Co.,               135,719.00             135,719.00                100% Aging long
    Jicheng Cotton Co., Ltd.            131,987.00             131,987.00                100% Aging long
                                                                   深圳中冠纺织印染股份有限公司 2013 半年度报告全文Millionaire(HK)Weaving
                                        124,280.00           124,280.00                100% Aging longLtd.
    Leader Day Ltd.                         121,960.00           121,960.00                100% Aging long
    Tex Mate Fabrics (HK)                   110,051.00           110,051.00                100% Aging long
    New Design Textiles Ltd.                109,205.00           109,205.00                100% Aging longDeep Success Industrial
                                        102,631.00           102,631.00                100% Aging longLtd.
    Wynvaye Industrial Co,.                 101,055.00           101,055.00                100% Aging long
    ACTSUNLTD.                               89,635.00            89,635.00                100% Aging longQuanzhou Ldeal Bird
                                         80,518.00            80,518.00                100% Aging longGarment Co., Ltd.
    Tamurakoma Co Ltd.                       77,847.00            77,847.00                100% Aging longInternational Textiles
                                         65,477.00            65,477.00                100% Aging longCo,.Shenzhen Hongtian
                                         59,395.00            59,395.00                100% Aging longCloth Trade Co., Ltd.
    Ho Cheong Textiles Ltd.                  54,620.00            54,620.00                100% Aging long
    Origin Textiles Co Ltd.                  54,169.00            54,169.00                100% Aging longWing Fook Piecegoods
                                         50,401.00            50,401.00                100% Aging longCo.,Ltd.Wing Shum Piecesgoods
                                         49,917.00            49,917.00                100% Aging longCo., Ltd.Gold Eagle Textiles
                                         47,600.00            47,600.00                100% Aging longLimitedTangshan Lifeng
                                         45,761.00            45,761.00                100% Aging longClothing Co., Ltd.
    Charman Trading Co                       43,863.00            43,863.00                100% Aging long
    Other                                   896,672.00           896,672.00                100% Aging long
    Total                                 8,888,114.00      8,888,114.00            --                       --(2)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          1,606,281.00 Over 3 years                             12.74%Textile(HK)Co., Ltd.
                                                                                 深圳中冠纺织印染股份有限公司 2013 半年度报告全文Carnival Index
                           Non-Related parties                      1,098,820.00 Over 3 years                                            8.72%International LtdTAI YANG
                           Non-Related parties                      1,010,296.00 Over 3 years                                            8.02%ENTERPRISE CO.,LTD.VEGA GARMENT
                           Non-Related parties                          770,071.00 Over 3 years                                          6.11%CO.,LTD
    Fly Dragon International Non-Related parties                            573,677.00 Over 3 years                                          4.55%
    Total                                  --                           5,059,145.00                    --                                  40.14%(3)Account receivable from Related parties
                                                                                                                                   Unit:RMB
                                                                                                                Portion in total receivables
             Name                  Relation with the company                         Amount
                                                                                                                        account(%)
                                The related parties controlled
    Shenye Union(HK)Co., Ltd.                                                                   299,428.00                                 2.38%
                                the same Actual controller
    Total                                               --                                        299,428.00                                 2.38%
        5. Other receivable
        1.Type analyses:
                                                                                                                     Unit:RMB
                                            Amount in year-end                                       Amount in year-begin
                                Book Balance              Bad debt provision              Book Balance                Bad debt provision
            Type
                              Amount        Proportio     Amount        Proportio      Amount        Proportion(       Amount         Proportio
                                              n(%)                        n(%)                           %)                             n(%)Other receivables withmajor individual amount
                           3,368,370.00        71.4% 3,368,370.00          100% 3,368,370.00             72.62%       3,368,370.00       100%and had debt provisionprovided individuallyOther receivables provided bad debt provision in groups
    Account age group             339,073.00       7.19%             0.00           0%     260,005.00             5.6%             0.00           0%
    Subtotal of group             339,073.00       7.19%             0.00           0%     260,005.00             5.6%             0.00           0%Other accountreceivablewith minor
    individual amount but      1,010,019.00       21.41% 1,010,019.00          100% 1,010,019.00             21.78%       1,010,019.00       100%bad debt provision isprovided
    Total                      4,717,462.00        --        4,378,389.00      --        4,638,394.00        --           4,378,389.00       --
                                                                         深圳中冠纺织印染股份有限公司 2013 半年度报告全文Category explanation of other accounts receivable:Other receivable accounts with large amount and were provided had debt provisions individually at end of period.√ Applicable □ Not applicable
                                                                                                                          Unit:RMB
        Decription              Book balance          Amount of bad debts            Rate(%)                     Reason
    Nanjing East Asia                     1,313,370.00              1,313,370.00                      100% Aging longCCB.Guangdong
                                      1,080,000.00              1,080,000.00                      100% Aging longShunde BranchChangzhou Dongfeng
    Textile Printing & dyeing               975,000.00                975,000.00                      100% Aging longEquipment Co., Ltd.
    Total                                 3,368,370.00              3,368,370.00              --                         --Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis:□Applicable √Not applicableOther receivable account in Group on which bad debt provisions were provided on percentage basis:□Applicable √Not applicableOther Receivable accounts on which bad debt provisions are provided by other ways in the portfolio:□Applicable √Not applicableOther receivable accounts with minor amount but were provided had debt provisions individually at end of period.√Applicable □Not applicable
                                                                                                                          Unit:RMB
         Content                Book balance           Bad debt Provision            Rate(%)                     ReasonHongKong Victor
                                        694,122.00                694,122.00                      100% Aging longOnwardShanghai Huayinke
                                        180,000.00                180,000.00                      100% Aging longTrade Industry Co., Ltd.Shenzhen Environmental
    Management System                        35,000.00                 35,000.00                      100% Aging longCertification CenterShenzhen DesignInstitute of Ministry of
                                         30,000.00                 30,000.00                      100% Aging longMachinery IndustryShanghai Branch
    Other                                    70,897.00                 70,897.00                      100% Aging long
          Total                       1,010,019.00              1,010,019.00              --                         --
                                                                             深圳中冠纺织印染股份有限公司 2013 半年度报告全文(2)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                    1,313,370.00 Over 3 years                                 27.84%CCB.Guangdong Shunde
                            Non-Related parties                    1,080,000.00 Over 3 years                                 22.89%BranchChangzhou Dongfeng
    Textile Printing & dyeing Non-Related parties                       975,000.00 Over 3 years                                  20.67%Equipment Co., Ltd.HongKong Victor
                            Non-Related parties                     694,122.00 Over 3 years                                  14.71%OnwardShanghai Huayinke
                            Non-Related parties                     180,000.00 Over 3 years                                   3.82%Trade Industry Co., Ltd.
              Total                     --                         4,242,492.00            --                                89.93%
        6.Prepayments(1)Prepayments age :
                                                                                                        Unit:RMB
                                         End of term                                            Beginning of term
        Age                                                     Proportion                                              Proportion
                                   Amount                                                  Amount
                                                                 (%)                                                     (%)
    Within 1 year                                       15,867.00            100%                             175,734.00          99.6%
    1-2 years                                                                                                     442.00          0.25%
    2-3 years                                                                                                     267.00          0.15%
    Total                                               15,867.00       --                                    176,443.00         --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
    Insurance                   Non-Related parties                          9,418.00                         Not settlement
                                                                                  深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Repair fee                Non-Related parties                                 4,012.00                              Not settlement
    Vehicle license fees      Non-Related parties                                 1,418.00                              Not settlement
    Other                     Non-Related parties                                 1,019.00                              Not settlement
    Total                                  --                                 15,867.00                 --                           --Notes(3)Statements on prepayments
    Name                              Amount at period-end                                   Amount at period-beginning
                       Former        Converting                RMB              Former      Converting rate        RMB
                       currency             rate                               currency
    HKD                        19,919            0.79655                 15,867       217,589            0.8109            176,443
    Total                                                                15,867                                            176,4437.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               2,030,715.00           1,929,179.00        101,536.00          2,030,715.00       1,929,179.00            101,536.00
    Stock goods                  635,960.00             635,960.00                 0.00         635,960.00          635,960.00                  0.00
    Total                       2,666,675.00           2,565,139.00        101,536.00          2,666,675.00       2,565,139.00            101,536.00(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                     1,929,179.00                                                                                   1,929,179.00
    Stock goods                        635,960.00                                                                                         635,960.00
    Total                             2,565,139.00                                                                                   2,565,139.00
                                                                                深圳中冠纺织印染股份有限公司 2013 半年度报告全文
        (3) Condition of inventory 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 periodStatement on inventories:The Company has been out of production, the closing inventories shall be written down after deducting the full amount provisions except the preservation materials .8. Disposable financial asset(1)Sellable financial assets
                                                                                                                                Unit:RMB
                                Items                                  Fair value at end of term          Fair value at beginning of term
    Available-for-sale equity instruments                                                    564,228.00                             751,542.00
    Total                                                                                    564,228.00                             751,542.00The amount of investment held to mature recategorized to sellable financial assets was RMB 0 , Account for 0%of total investment 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 becausethey are not to be cashed in a short term.9. Investment to joint venture and Affiliated Enterprises
                                                                                                           Unit:RMB
                                        Company vote
                                            right
                           Company                                                                         Total business
                                        percentage in   Ending total     Ending total     Ending net                            Current
      Name
                       shareholding                                                                        revenues at this
                                         the invested      assets         liabilities        assets                            net profit
                      percentage (%)                                                                           period
                                         unittion of
                                          units (%)I. Joint venture
                                                                   深圳中冠纺织印染股份有限公司 2013 半年度报告全文II. Affiliated enterpriseZhejiang UnionHangzhou
                                             1,503,943,957. 1,201,964,045.
    Bay                        25%        25%                                   301,979,912.00 22,742,368.00   -284,333.00
                                                        00             00ChuangyeCo., Ltd.Statements on material diversity in accounting policies, estimations adopted by the Company and the affiliates:
       10. Long term share equity investment.
                                                                                     深圳中冠纺织印染股份有限公司 2013 半年度报告全文(1)Details of long-term equity investment
                                                                                                                                   Unit:RMB
                                                                                                   Explainati
                                                                                                     on of
                                                                                                   diffirence
                                                                                                   between
                                                                            Sharehold   Voting     sharehold
             Accounti      Initial                                             ing       right        ing
                                       Original                 Ending                                                   Current     Cash
    Name             ng     investmen                 change                  proportio proportio proportio Devalue
                                       balance                  Balance                                                  devalue    bonus
               method       t cost                                           n in the   n in the     n and
                                                                            investee    investee    voting
                                                                                                     right
                                                                                                   proportio
                                                                                                      n in
                                                                                                    investeeZhejiangUnion
    Hangzho Equity            58,588,40 65,784,31                  65,712,61
                                                   71,698.00                     25%        25% N/A               0.00       0.00       0.00
    u Bay       method             3.00         2.00                     4.00ChuangyeCo., Ltd.
                          58,588,40 65,784,31                  65,712,61
    Total              --                              71,698.00                    --         --          --         0.00       0.00       0.00
                               3.00         2.00                     4.00
        11.Investment real estate(1)Measured by the cost of investment in real estate
                                                                                                                                   Unit:RMB
           Items              Book amount at year            Increase at this period    Decrease at this period   Book balance in year -end
                                      beginning
                                         96,920,525.00                    222,397.00                 611,470.00               96,531,452.001. Total original price
                                         96,920,525.00                    222,397.00                 611,470.00               96,531,452.001.House, Building
    II.Total    accumulated                  65,879,041.00                 1,163,607.00                                           67,042,648.00depreciation
                                                                           深圳中冠纺织印染股份有限公司 2013 半年度报告全文accumulatedamortization
                                    65,879,041.00                1,163,607.00                                          67,042,648.001.House, BuildingIII. Total book value
                                    31,041,484.00                -941,210.00                   611,470.00              29,488,804.00of investment realestate
                                    31,041,484.00                                                                      29,488,804.001.House, BuildingIV. Total ofaccumulated provision
                                              0.00for devaluation ofinvestment real estate
    1.House, Building                             0.00V. Total book value of
                                    31,041,484.00                -941,210.00                   611,470.00              29,488,804.00investment real estate
    1.House, Building                   31,041,484.00                                                                      29,488,804.00
                                                                                                                          Unit:RMB
                                                                                                    This period
    Current amount of deprectiation and amortization                                                                        1,163,607.00
    Investment real estate in this period the amount of impairment                                                                     0.00
    12. Fixed assets(1)Fixed assets
                                                                                                                       Unit:RMB
               Items           Book amount at             Increase at this period               Decrease at this    Book balance in
                               year beginning                                                       period             year -end1.Total of Original price of
                                 161,276,810.00                                     7,644.00           866,087.00     160,418,367.00fixed assetsIncluding :House and
                                  47,973,327.00                                                                        47,973,327.00building
    Machine equipment               99,308,680.00                                                                        99,308,680.00
    Transporation Equipment            4,870,110.00                                                        542,659.00       4,327,451.00
                                                              深圳中冠纺织印染股份有限公司 2013 半年度报告全文Electricity equipment and
                                9,124,693.00                       7,644.00          323,428.00       8,808,909.00other
                            Book balance at    Current term   Current term    Decrease at this    Book balance in
               --
                            year beginning        new extra      provision        period             year -endII. Total of Accumulated
                              111,245,417.00                     121,945.00          767,965.00     110,599,397.00depreciationIncluding :House and
                               26,436,963.00                      55,614.00                          26,492,577.00building
    Machine equipment            75,000,283.00                                                         75,000,283.00
    Transporation Equipment         3,864,419.00                      57,407.00          488,635.00       3,433,191.00Electricity equipment and
                                5,943,752.00                       8,924.00          279,330.00       5,673,346.00other
                            Book balance in                                                         Balance in
               --                                                 --
                              year-begin                                                             year-endIII. Total book value of
                               50,031,393.00                      --                                 49,818,970.00Fixed assetsIncluding :House and
                               21,536,364.00                      --                                 21,480,750.00building
    Machine equipment            24,308,397.00                      --                                 24,308,397.00
    Transporation Equipment         1,005,691.00                      --                                    894,260.00Electricity equipment and
                                3,180,941.00                      --                                  3,135,563.00otherIV. Total of Devalued
                               37,614,934.00                      --                                 37,614,934.00ProvisionIncluding :House and
                               15,466,004.00                      --                                 15,466,004.00building
    Machine equipment            19,407,245.00                      --                                 19,407,245.00
    Transporation Equipment            50,276.00                      --                                     50,276.00Electricity equipment and
                                2,691,409.00                      --                                  2,691,409.00otherV. Total book value of
                               12,416,459.00                      --                                 12,204,036.00Fixed assetsIncluding :House and
                                6,070,360.00                      --                                  6,014,746.00building
    Machine equipment             4,901,152.00                      --                                  4,901,152.00
    Transporation Equipment           955,415.00                      --                                    843,984.00
    Electricity equipment and         489,532.00                      --                                    444,154.00
                                                                           深圳中冠纺织印染股份有限公司 2013 半年度报告全文otherCurrent depreciation is RMB121,945.00 . 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            provision
    House and building           44,541,973.00         25,173,561.00          15,466,005.00            3,902,407.00
    Machine
                             98,998,752.00         74,858,652.00          19,471,657.00            4,668,443.00equipmentTransporation
                              2,979,438.00          2,681,462.00                                     297,976.00EquipmentElectricity
                              7,543,601.00          4,839,872.00           2,504,293.00              199,436.00equipment and other
    Total                       154,063,764.00        107,553,547.00          37,441,955.00            9,068,262.00
    13. Intangible assets
        (1) Intangible assets
                                                                                                                         Unit :RMB
              Items              Book Balance in                                                                  Book Balance in
                                                          Increase at this period    Decrease at this period
                                     year-begin                                                                      year-end
                                        13,023,720.00                                                                  13,023,720.001. Total original price
                                        12,356,137.00                                                                  12,356,137.00
    Land Use right
    Software                                     667,583.00                                                                   667,583.00II. Total amount of
                                        10,935,796.00                   20,153.00                                      10,955,949.00accumulated
                                        10,495,373.00                   20,153.00                                      10,515,526.00
    Land Use right
    Software                                     440,423.00                                                                   440,423.00III. Book value of
                                          2,087,924.00                 -20,153.00                                       2,067,771.00intangible assets
                                          1,860,764.00                                                                  1,860,764.00
    Land Use right
    Software                                     227,160.00                                                                   227,160.00
                                                                              深圳中冠纺织印染股份有限公司 2013 半年度报告全文IV.Total value of
                                              227,160.00                                                                 227,160.00provision for impairment
    Land Use right
    Software                                      227,160.00                                                                 227,160.00V. Total Book value of
                                         1,860,764.00                   -20,153.00                                     1,840,611.00intangible assets
                                         1,860,764.00                   -20,153.00                                     1,840,611.00
    Land Use rightSoftwareThe amortization amount is RMB 20,153.00.14.Goodwill
                                                                                                                         Unit:RMB
    Name of the investee or the         Balance in          Increase at this     Decrease at this     Balanve in      Ending devalue
    matter of forning Goodwill          year-begin              period                period          year-end          provisionFor the goodwill formed from
    holding shares of Nanhua                 5,099,624.00                   0.00                  0.00    5,099,624.00             0.00Company,
    Total                                    5,099,624.00                   0.00                  0.00    5,099,624.00             0.00Statement of basis for impairment testing and provision of goodwill:
    Nanhua Company has suspended production and maintained daily operation by renting houses. Although thenet assets of Nanhua Company are negative, Nanhua Company has large area of land and house properties in theurban area of Shenzhen, whose fair value is much higher than its book value. In the opinion of the Company, theimpairment of the goodwill formed by this investment has not occurred.
        15. Deferred income tax assets and deferred income tax liability
        1. Confirmed the deferred income tax assets and deferred income tax liability
                                                                                                                         Unit:RMBRecognized deferred income tax assets and deferred income tax liabilities
                        Items                                   Year-end balance                     Year-beginning balanceDeferred income tax assets:Deferred income tax liability:Assessed tax-free periods of time caused by
                                                                                   753,092.00                            766,660.00differences in income
                                                                              深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Subtotal                                                                              753,092.00                                  766,660.00
                                                                                                                                  Unit:RMB
                      Items                                          At end of term                         At beginning of termDeductible 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                               NotesDetails of taxable differences and deductible differences
                                                                                                                                    Unit:RMB
                                                                                Amount of temporary differences
                       Items
                                                                      At end of term                         At beginning of termDifferences in taxable itemsDeductible difference project(2)Deferred income tax assets and liabilities are presented as net amount after neutralizationStatement on deferred income tax assets and liabilities:
                                                                                                                                  Unit:RMB
                                                                          Temporarily                                        Temporarily
                                            Deferred Income Tax                               Deferred Income Tax
                                                                         Deductable or                                      Deductable or
                                             Assets or Liabilities                            Assets or Liabilities
                  Items                                              Taxable Difference at                            Taxable Difference at
                                             at the End of Report                              at the Beginning of
                                                                       the End of Report                                   the Beginning of
                                                    Period                                         Report Period
                                                                             Period                                         Report Period
    Deferred income tax liability:                         753,092.00                                       766,660.00Details of taxable differences and deductible differences
                                                                                                                                  Unit:RMB
                       Items                                                   Offsetting Amounts of This PeriodDetails of taxable differences and deductible differences16. Provision for depreciation of assets
                                                                                                                                 Unit :RMB
            Items                 Book balance at the    Increase in this              Decreased in this period                Balance in
                                                                             深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                beginning of term          period                               Switch            year-end
                                                                              Switch back
                                                                                              cancellation
    I.Provision for bad debts            16,237,188.00                                                               16,237,188.002 Inventory impairment
                                      2,565,139.00                                                                2,565,139.00provision5. Long-term equity
    investment impairment                                               0.00                                                     0.00provision7.Fixed asset impairment
                                               0.00provision12. Intangible asset
                                     37,614,934.00                                                               37,614,934.00impairment provision13. Goodwill impairment
                                        227,160.00                                                                  227,160.00provision
    Total                                                                                                                        0.00
    合计                                 56,644,421.00                                                               56,644,421.00Notes
        17. Account payable
        (1)Account payable
                                                                                                                   Unit :RMB
                       Items                               Balance in year-end                   Balance in year-begin
    Over 1 year                                                                   3,214,947.00                        3,239,571.00
    Total                                                                         3,214,947.00                        3,239,571.00
        (2)There was account payable due from shareholders with more than 5% (including 5%) of the voting shares
        of the company
                                                                                                                   Unit :RMB
                       Name                                Balance in year-end                   Balance in year-begin
    Total                                                                                 0.00                                   0.00(3)The description of large-sum accounts payable with the age over 1 year:
        Accounts payable with age over one year included a number of accounts, without single significant amountof accounts payable.
    18. Advance account
        1. Advance account
                                                                                                                    Unit:RMB
                                                                        深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                      Items                              Balance in year-end                    Balance in year-begin
    Within 1 year                                                             5,050,000.00
    Over 1 year                                                               2,777,624.00                             2,778,488.00
    Total                                                                     7,827,624.00                             2,778,488.00
      19. Payable Employee wage
                                                                                                                     Unit:RMB
        Items         Balance in year-begin   Increase in this period       Payable in this period        Balance in year-end1.Wages, bonuses,
    allowances and                   618,755.00              1,325,422.00                    1,325,422.00                618,755.00subsidies
    2.Employee welfare                                           26,500.00                       26,500.003. Social insurance
                                                           138,532.00                      138,532.00premiums
    Medical insurance                                            35,067.00                       35,067.00Basic old-age
    insurance                                                    93,036.00                       93,036.00premiumsUnemployment
                                                              3,955.00                        3,955.00insuranceWork injury
                                                              3,216.00                        3,216.00insuranceMaternity
                                                              3,258.00                        3,258.00insuranceIV. Public reserves
                                                             37,102.00                       37,102.00for housing
    VI. Other                        147,925.00                   9,599.00                                               157,524.00
    Total                            766,680.00              1,537,155.00                    1,527,556.00                776,279.00The amounts of arrears of staff salary and welfare payable are RMB 0 00.The amounts of trade union funds and staff education expenses are RMB35,692.00, the amounts of non-monetarybenefits are RMB 0.00, and the compensations for the lifting of labor relations is RMB 0.00The expected release time and amount of staff salary and welfare payable are arranged in the beginning of nextyear.20. Tax Payable
                                                                                                                     Unit:RMB
                        Items                                    At end of term                      At beginning of term
    VAT                                                                            -139,455.00                          -139,455.00
                                                                          深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Business Tax                                                                       142,648.00                          147,341.00
    Enterprise Income tax                                                            1,204,210.00                         1,204,210.00
    House property Tax                                                                 187,320.00                          187,320.00
    Stamp Tax                                                                          222,658.00                          222,658.00Education subjoinLocal education surcharges
    Total                                                                            1,617,381.00                         1,622,074.00Statement on tax payable: Please provide the calculating processes then taxable income is balanced betweenbranch companies or factories as approved by the tax bureau.21.Dividend payable
                                                                                                                       Unit:RMB
                Name                        At end of term           At beginning of term        Reason of overdue for one yearState Development & Investment
                                                      243,189.00                   243,189.00 Capital tenseCo., Ltd*2
    CITIC Group*2                                         243,189.00                   243,189.00 Capital tenseShenzhen Nanyou (Group)
                                                      121,595.00                   121,595.00 Capital tenseCompany*2
    Shenye Union(Hongkong)Co., Ltd.                     121,595.00                   121,595.00 Capital tense
    HongKong Victor Onward                                486,378.00                   486,378.00 Capital tense
    Total                                               1,215,946.00                 1,215,946.00                   --Notes*1 The above payable dividends were the payable dividends of Nanhua Company, a subsidiary of the company, the change inbalance mainly due to the change of exchange rate. Because Nanhuan Company’s capital was more tension and the shareholders didnot ask for the fund, the payable dividends have not been paid. The payable dividends reduced at the end of the period mainly due tothe change of exchange rate.*2 The above three companies are the former shareholders of Nanhuan Company, the subsidiary of the company.
        22. Other payable
        (1)Other payable
                                                                                                Unit:RMB
                        Name                                 Balance in year-end                   Balance in year-begin
    Within 1 year                                                                  1,239,791.00                           1,490,185.00
    Over 1 year                                                                   21,437,132.00                          30,737,132.00
                                                                         深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Total                                                                          22,676,923.00                       32,227,317.00(2)Statement on large amount other payable accounts due for over one yearOther payables which are longer than one year mainly were the loans borrowed by Nanhuan Company the subsidiary of the companyfrom related companies, which have not been paid because of capital tension.(3)Statement on large amount other payable accounts
    Items                                                       Amount                 Age                     Content
    Room   760    Cargo              Floor     (   #HKS              151,345       1-2 years      Property depositPINNERS-760)
    State Development & Investment Co., Ltd                         3,000,000 Over 3 years Current account and interest
    Jinrongyuan Company                                             1,100,000 Over 2-3 years Workshop deposit
    Shenzhen Union Real estate Group Co.,Ltd                          700,734 Over 3 years Current account
    Union Development Group                                       15,104,652 Over 1-3 years Loan and interest
    Total                                                         20,056,73123.Other current liabilities
                                                                                                                     Unit:RMB
                      Items                                Year-end balance                      Year-Beginning balance
    Audit fees                                                               3,770,917.00                              1,395,917.00
    Securities Management                                                            746.00                                     746.00
    Sewage charges                                                                 62,600.00                              62,600.00
    Land use fees                                                                  88,000.00                              88,000.00
    Total                                                                    3,922,263.00                              1,547,263.00Statement of other current liabilities:24. Long-term borrowing(1)Long-term loans classifications
                                                                                                                      Unit:RMB
                       Items                                Year-end balance                       Year-Beginning balance
    borrowing by pledge                                                            953,576.00                            1,033,936.00
    Total                                                                          953,576.00                            1,033,936.00Statement on long-term borrowings.
                                                                       深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    The borrowing was the installment payment for the bousing in Hongkong bought by thesubsidiary of theCompany Xingye Company , the mortgage article was the house purchased. The installment payment was HKD2, 366,000, Which paid in 240 month, as of June 30, 2013, Principal amount of HKD 1, 197,132(RMB 953,576).25.Long-term payable(1)Top 5 long-term payable
                                                                                                                    Unit:RMB
        Name             Term       Initial amount    Interest rate(%) Interest payable    End balance        ConditionAssess the value Unlimited
                                       8,488,953.00                                            8,338,729.00
    of assets          duration(2)Details of finance leasing payments in long-term payable
                                                                                                                     Unit :RMB
                                                       End of term                              Beginning of term
                 Name
                                       Foreign currency              RMB               Foreign currency         RMB
    Total                                                   0.00                   0.00                 0.00                  0.00Guarantee provided by the 3rd party for the leasing finance is amounted to RMB0.Statement on long-term payables:When the Company was reorganized into a joint stock company, it obtained the special approval of People's Bankof China for vesting the appraisal increment from the revaluation of the assets of Hong Kong Victor Onward inthe original shareholders of the Company before reorganization. Such assets were appraised on January 31, 1992.increment of around HKD 14,754,000 was generated from the assets appraisal and entered the long-term accountpayable. Part of it has been used to set off the bad debts of around HKD 4,285,000 incurred before listing. Theoriginal shareholders of the Company before the reorganization agreed not to require reimbursement of suchincrement in cash. It will be used to set off the price at which they will subscribe for shares of the Company in thefuture. The increase of long-term accounts payable in the report year was caused by change in exchange rate.
        26.Other Non-current liabilities
                                                                                                                    Unit:RMB
    Items                                                     Year-end balance                     Year-beginning balance
    ERP Information construction                                              228,216.00                                228,216.00
    Technology subsidies                                                      608,576.00                                608,576.00
    Total                                                                     836,792.00                                836,792.00
                                                                              深圳中冠纺织印染股份有限公司 2013 半年度报告全文Statement on other non-current liabilities, including asset-related and income-related government subsidy andclosing balances:The above funds were the special subsidies received from Shenzhen Department of Finance in 2004 for the digitaljet printing projects and for the construction of enterprise information. The deal must be accepted by the FinancialBureau before accounting, so it was suspended. The reduction was due to the change in exchange rates.
        27. .Stock capital
                                                                                                                               Unit:RMB
                                                            Increase/decrease this time (+ , - )                              Balance
                      Balance
                                    Issuing of new                     Transferred                                            year-end
                   Year-beginning                     Bonus shares                          Other            Subtotal
                                        share                         from reservesTotal of capital
                   169,142,356.00                                                                                          169,142,356.00sharesStatement of change in capital shares. Name of CPA and number of verification report shall be provided if capitalincreasing or decreasing occurred in the report period; as for shareholding limited companies incorporated for lessthan three years, only net assetis is required for the years prior to incorporation; for shareholding limitedcompanies reformed from limited companies shall provide the capital verification at incorporation.
    28. Capital reserves
                                                                                                                               Unit:RMB
              Items                 Year-beginning balance      Increase in the current    Decrease in the current      Year-end balance
                                                                        period                      period
    Share premium                                   29,718,829.00                                                               29,718,829.00
    Other                                           10,071,955.00                                          126,556.00            9,945,399.00
    Total                                           39,790,784.00                                          126,556.00           39,664,228.00Statement on capital reserves:29. Surplus reserve
                                                                                                                             Unit   :RMB
              Items                 Year-beginning balance      Increase in the current    Decrease in the current      Year-end balance
                                                                        period                      period
    Statutory surplus reserve                       26,704,791.00                                                               26,704,791.00
                                                                          深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Total                                       26,704,791.00                                                          26,704,791.00Statement on surplus reserves. Please state the related resolutions of the Board on capitalizing of reserves, makingup losses, and dividends:30. Retained profits
                                                                                                                       Unit:RMB
                                                                                                     Extraction or distribution of
                       Items                                             Amount
                                                                                                            the proportionAfter adjustments: Retained profits at the period
                                                                                   -116,273,941.00                --beginningAdd:Net profit belonging to the owner of the
                                                                                     -4,123,606.00                --parent company
    Retained profits at the period end                                                 -120,397,547.00                --As regards the details of adjusted the beginning undistributed profits(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affectedbeginning undistributed profits are RMB 0.00.(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profitsare RMB 0.00.(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .Statement on retained profit: for companies issued their securities for the first time, if the accumulated profitbefore the issuing is shared by the new and existing shareholders as approved by the shareholders’ meeting, shallbe described particularly; if the accumulated profit before the issuing is shared only by existing shareholders asapproved by the shareholders’ meeting, the Company shall provide the details of dividend payable to the existingshareholders as audited by CPA.
        31. Business income, Business cost
        (1)Operating income and operating cost
                                                                                                                   Unit :RMB
                    Items                     Amount of current period                      Amount of previous period
                                                                         深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Income from Business income                                              4,990,626.00                               5,019,787.00
    Business cost                                                            2,073,313.00                               2,199,834.00(2)Main business(Industry)Unit:RMB
                                   Amount of current period                                   Amount of previous period
                Name
                                     Business income            Business cost           Business income        Business cost
    Rent                                        4,990,626.00              2,073,313.00            5,019,787.00          2,199,834.00
    Total                                       4,990,626.00              2,073,313.00            5,019,787.00          2,199,834.00(3)Main business(Production)
                                                                                                                   Unit:RMB
                                   Amount of current period                                   Amount of previous period
                Name
                                     Business income            Business cost           Business income        Business cost
    Rent                                        4,990,626.00              2,073,313.00            5,019,787.00          2,199,834.00
    Total                                       4,990,626.00              2,073,313.00            5,019,787.00          2,199,834.00(4)Main Business(Area)
                                                                                                                   Unit:RMB
                                   Amount of current period                                   Amount of previous period
                Name
                                     Business income            Business cost           Business income        Business cost
    China                                       4,119,034.00              1,498,006.00            4,162,475.00          1,630,336.00
    Hong Kong                                     871,592.00                575,307.00             857,312.00            569,498.00
    Total                                       4,990,626.00              2,073,313.00            5,019,787.00          2,199,834.00
        (5)Total income and the ratio of operating income from top five clients
                                                                                                                     Unit:RMB
                Name                          Business Income                                  Proportion(%)
    Shenzhen Jinrongyuan                                          2,890,500.00                                                57.92%
    SCSExpress International Limited                               458,126.00                                                 9.18%
                                                                          深圳中冠纺织印染股份有限公司 2013 半年度报告全文Shenzhen Hebainian Investment
                                                               300,000.00                                                  6.01%Development Co., Ltd.Shenzhen Nanshan Saint Laurent
                                                               264,600.00                                                   5.3%Wedding PhotographyJishunda Motor vehicle driver
                                                                72,000.00                                                  1.44%training Center
    Total                                                        3,985,226.00                                                79.85%Notes
        32. Business tax and subjoin
                                                                                                                     Unit :RMB
                  Items                                              Same period of the                  Standard
                                            Report period              previous year
    Business tax                                        205,952.00                 141,785.00 5%
    Urban construction tax                               14,417.00                   9,925.00 7%
    Education surcharge                                   6,178.00                   4,254.00 3%
    Local Education surcharge                             4,119.00                   2,835.00 2%
    Total                                               230,666.00                 158,799.00                    --Notes
          33. Investment income
          (1)Investment income
                                                                                                                    Unit:RMB
                          Items                             Amount of current period            Amount of previous periodIncomes from disposal of long-term equity
                                                                               -71,083.00                             417,624.00investment
    Investment income from financial assets sales                                                                          11,022.00
    Total                                                                          -71,083.00                             428,646.00(2)long-term equity investment incomes confirmed by equity method include:
                                                                                                                      Unit:RMB
                                        Amount of current period     Amount of previous
                   Name                                                                        Reason to increase or decrease
                                                                            period
                                                                              深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Hangzhou Bay Company                                        -71,083.00               417,624.00
    Total                                                       -71,083.00               417,624.00                      --Statement on investment gains, please state whether or not there are material constrains on retrieving ofinvestment gains.34. Non-operating income
        (1)Non-operating income
                                                                                                                                   Unit:RMB
                                                                                                                    The amount of
                     Items                        Amount of current period    Amount of previous period          non-operating gains &
                                                                                                                          lossedTotal income from liquidation of
                                                                   3,929.00                        5,174.00                         3,929.00non-current assetsIncluding:Income from liquidation of fixed
                                                                   3,929.00                        5,174.00                         3,929.00asset
    Other                                                                                             24,389.00
    Total                                                              3,929.00                       29,563.00                         3,929.00
        35. Non-Operation expense
                                                                                                                                   Unit:RMB
                                                                                                                      The amount of
                                                       Amount of current period        Amount of previous
                       Items                                                                                      non-operating gains &
                                                                                                                           lossed
                                                                                             period
    Total Disposal of loss of non-current assets                             19,043.00                        0.00                     19,043.00
    Including: Disposal of net loss of fixed assets                          19,043.00                                                 19,043.00
    Legal cost                                                           2,400,000.00                 2,981,415.00                2,400,000.00
    Fine expenses                                                                                          600.00
    Total                                                                2,419,043.00                 2,982,015.00                2,419,043.00Notes
        36. Calculation of Basic earnings per share and Diluted earnings per share
                 Items                                        No                       Current term       Same period of last term
    Net profit attributable to shareholders   1
                                                                                         -4,123,606                         -4,187,136of parent company
    Non-recurring gain/loss attributable      2
                                                                                         -2,415,114                       -2,941,430of the parent company
                                                                           深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Net profit attributable to common              3=1-2
    share holders of the Company after                                                -1,708,492                -1,245,706deducting of non-recurring gain/loss
    Total shares at the beginning of the           4
                                                                                  169,142,356               169,142,356year
    Additional share capital transferred           5from public reserve or additional
    shares    from         shares      dividenddistribution(Ⅰ)
    Additional shares from issuing new             6shares or debt-converted shares(Ⅱ)
    Accumulative       months          of   the    7additional share commencing fromthe next moth till the end of the year
    Decreased shares due to repurchase             8
    The number of months since the next            9month of share decreasing to the endof report term
    Amount of shares reduced                       10
    Number of months in the report term            11
    Weighted average of common shares              12=4+5+6×7÷11
                                                                                  169,142,356               169,142,356issued outside
                                                -8×9÷11-10
    Basic earning pershare(Ⅰ)                   13=1÷12                                 -0.02                     -0.02
    Basic earning pershare(Ⅱ)                   14=3÷12                                 -0.01                     -0.01
    Diluting potential common share                15interests recognized as expenses
    Transformation fees                            16
    Income tax rate                                17                                         25%                       25%
    Amount of shares increased by                  18
    transforming      or     exercising      of
    company          bond,          subscriptioncertificate, or share option
    Diluted earning per share(Ⅰ)                19=[1+(15-16)×(1-17)]÷(12+18)          -0.02                     -0.02
    Diluted earning per share(Ⅱ)                19=[3+(15-16)×(1-17)]÷(12+18)          -0.01                     -0.0137. Other comprehensive income
                                                                                                                Unit:RMB
                                                                             深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                               Items                                Amount of current period               Amount of previous period
    1.Loss amount produced by sellable financial assets                                         -126,556.00                      -80,951.00
                            Subtotal                                                        -126,556.00                      -80,951.00
    4. Translating difference in foreign currency financial reports                             -482,695.00                      -38,246.00
    Subtotal                                                                                    -482,695.00                      -38,246.00
                               Total                                                        -609,251.00                     -119,197.00Notes
        38. Supplement Information for cash flow statement(1)Supplement Information for cash flow statement
                                                                                                                             Unit :RMB
                  Supplement Information                         Amount of current period                 Amount of previous period
                                                                                --                                   --I. Adjusting net profit to cash flow from operating activities
    Net profit                                                                      -4,123,606.00                        -4,187,136.00Depreciation of fixed assets, oil and gas assets and
                                                                                       121,945.00                          1,423,030.00consumable biological assets
    Amortization of intangible assets                                                       20,153.00                            20,152.00Loss on disposal of fixed assets, intangible assets and other
                                                                                         15,114.00                            -5,174.00long-term deferred assets
    Loss of fair value fluctuation on assets                                                                                     -13,510.00
    Financial cost                                                                         273,998.00                            -47,525.00
    Loss on investment                                                                      71,083.00                           -428,646.00
    Decease of operating receivables                                                      1,619,922.00                          350,288.00
    Increased of operating Payable                                                        3,950,831.00                         3,100,318.00
    Other                                                                                                                        -45,808.00
    Net cash flows arising from operating activities                                      1,949,440.00                          165,989.00II. Significant investment and financing activities that
                                                                                --                                   --without cash flows:
    III. Net increase of cash and cash equivalents                                  --                                   --
    Ending balance of cash                                                               48,768,467.00                        53,666,428.00
                                                                                      深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Less: Beginning balance of cash                                                            52,227,262.00                               53,399,316.00
    Net increase of cash and cash equivalents                                                   -3,458,795.00                                   267,112.00(2)Composition of cash and cash equivalents
                                                                                                                                          Unit :RMB
                              Items                                     Amount of current period                  Amount of previous period
                                                                                           48,768,467.00                               52,227,262.00I. Cash
                                                                                                 107,169.00                                     66,684.00Of which: Cash in stock
    Bank savings could be used at any time                                                     47,992,355.00                               51,492,804.00
    Other monetary capital could be used at any time                                            668,943.00                                 667,774.00
    III. Balance of cash and cash equivalents at the period end                                48,768,467.00                               52,227,262.00Notes(VIII) Related parties and related-party transactions1. Parent company information of the enterprise
                                                                                                 The parent                      The
                                                                                                               The parent
                                                                                                  company                      ultimate
                                                      Legal                                                     company                     Organizati
                Related                Registered                                   Registrate      of the                    controlling
    Name                       Type                  representat      Nature                                      of the                     on Code
                parties                 address                                      d capital Company's                       party of
                                                       ive                                                     Company’
                                                                                                  shareholdi                     the
                                                                                                               s vote ratio
                                                                                                   ng ratio                   Company
                                                                  Production
                                      11/F,Union
                                                                  and        sale
            Controllin                Bulding,
                          Issue                                   ofclothing
    Union       g                         Shennan       Dong                            1,123,887,                                Union         19247150
                      company                                     and textiles,                      25.51%       25.51%
    Holdings    Shareholde                Zhong         Binggen                         712                                       Group         0
            r                                                     and        real
                                      Road,Shen
                                                                  estate
                                      zhen
                                                                  Developin
                                      Union                       Import       &
                          Limited
    Union       Actual                    Bulding,She Dong            export                                                      Union         19033795
                          liability                                                 90,606,000        3.36%         3.36%
    Group       controller
                                      nnan Zhong
                                                  Bingen
                                                                  business                                                    Group         7
                          Company
                                      Road,                       “processing
                                                                                  深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                       Shenzhen                 with
                                                                materials”
                                                                and
                                                                processing
                                                                with
                                                                imported
                                                                materialsNotesUnion Group holds 31.32% of equity capital of Union Holdings, it controls Union Holdings, and Union Holdings is a controllingshareholder of the company, thus Union Group is the actual controller of the companyThe registered capital of the parent company and its changes
    Parent Company                         Amount at year                                                                 Amount at year end
                                         beginning             Increase in the       Decrease in the
                                                               current period        current period
    Union Group                                   90,606,000                                                                                 90,606,000
    Union Holding                              1,123,887,712                                                                               1,123,887,712
                    Shares or equity held by the parent company and changes
    Parent Company                                    Held share amount                                 Held share proportion(%)
    Union Group                             Amount at year        Amount at year         Proportion at year        Proportion at year beginning %
                                             end                 beginning                end %
    Union Holding                                  5,681,089                5,821,089                     3.36                                       3.44
                                              43,141,032               43,141,032                   25.51                                     25.512.Particulars of the subsidiaries
                                                                                                                                          Unit :RMB
                                                                                                             The
                                                                                                                            The
                                                                                                       subsidiaries
                                                              Legal                                                      subsidiaries Organizatio
                   Related                 Registered                                   Registrated          of the
    Name                         Type                     representati       Nature                                         of the       n Code
                   parties                   address                                      capital      Company's
                                                               ve                                                        Company’s
                                                                                                       shareholdin
                                                                                                                          vote ratio
                                                                                                          g ratio
    HongKong Controlled          Limited
                                                                                       2,400,002
    Victor         subsidiarie Liability       Hongkong                     Trade                                   100%           100%
                                                                                       (HKD)
    Onward         s             Company
    Nanhua        Controlled     Limited       Shenzhen      Hu             Product        85,494,700             69.44%         69.44% 618836600
                                                                                深圳中冠纺织印染股份有限公司 2013 半年度报告全文
    Company       subsidiaries Liability                      Yongfeng                     (HKD)
                             Company
    Shenzhen                     Limited
              Controlled
    East Asia                    Liability     Shenzhen       Sun Zhiping Trade            3,000,000               51%            51% 799228355
              subsidiaries
    Company                      Company3. Information of Joint venture and Affiliated company
                                                                                                                                   Unit:RMB
                                                                         Registrated
                                              Legal                                    Held Share       Voting
                             Registrated                                   capital                                      Related   Orgabuzatui
    Name              Type                  representati        Nature                  proportion( proportion(
                               address                                   (RMB’00                                      parties     b code
                                               ve                                          %)             %)
                                                                            00)I.Joint enterpriseII. Affiliated enterprise
                                                          Real estate
                                                           Exploiters,
                                                           Basis
    Zhejiang                                                   constructio
              Limited
    Union                                      Dong            n             247,476,832                                 Affiliated
              Liability      Hanghou                                                            25%            25%                757230553
    Hangzhou                                   Binggen         Manageme .6                                               enterprise
              Company
    Bay                                                        nt and
                                                           Property
                                                           Manageme
                                                           nt
      4. Other Related parties information of the enterprise
        Other Related parties name              Relation of other Related parties with the
                                                                                                Organization code
                                                                    company
                                               The related parties controlled the sameShenye Union(HK)Co., Ltd.
                                               Actual controller
                                               The related parties controlled the same
    Shenzhen Union Property Group Co., Ltd.                                                         192199105
                                               Actual controllerNotes
                                                                               深圳中冠纺织印染股份有限公司 2013 半年度报告全文5. Related transactions.(1)Related leasingThe Company is the lender
                                                                                                                           Unit:RMB
                                                                                                                          Rental
    Name of the       Name of the         Category of asset
                                                              Starting date        Stop date        Pricing basis    recognized in the
        owner             tenant             for rent
                                                                                                                          periodThe Company is the undertaker
                                                                                                                           Unit:RMB
                                                                                                                          Rental
    Name of the          Name of the      Category of asset
                                                               Starting date        Stop date        Pricing basis   recognized in the
        owner             tenant              for rent
                                                                                                                          period
                                                              November 1,
    Union Group        The Company              House                             October 31, 2014    Lease Contract      41,760.00
                                                                    2012Notes
    In the report year, the Company leased Room 1307 and 1308 of Union Building owned by Union Group. InNovember 2012, The term of tenancy is from November 1, 2012 to October 31, 2014. The monthly rent is RMB6960. The rent was determined according to market price.
    6. Payables and receivables of the related partyListed company related party fund
                                                                                                                         Unit:RMB
                                                                   Amount at year end                 Amount at year beginning
           Name                    Related party
                                                         Balance of Book Bad debt Provision Balance of Book Bad debt Provision
                             Shenye Union(HK)
    Account receivable                                             299,428.00          299,428.00          299,428.00          299,428.00
                             Co., Ltd.The listed company Payables of the related party
                                                                                                                          Unit :RMB
                                                                               Amount at year end         Amount at year beginning
                 Name                              Related party
    Other payable                            Union Development Group                         15,104,652.00                  24,748,412.00
                                                                                深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                        Shenzhen Union Property
    Other payable                                                                                      700,734.00                  700,734.00
                                        Group Co., Ltd.(IX) Subsequent events1. Liabilities formed from pending lawsuit and mediation and its financial impact
    On June 4, 2012, The company has instituted court action against below three companies at Jiangsu ProvinceHigher People's Court, and asked to terminate the contracts and agreements signed with Nanjing East Asia TextilePrinting & Dyeing Co., Ltd., Nanjing East Asia Investment & Development Group Limited and Hong KongYiuchun Limited, who shall pay RMB47,922,902.92 to the company for the pecuniary loss of implicativecompensation and undertake the costs of litigation. As of June 30, 2013, Jiangsu Higher People's Court did notgive a judgement. Currently it is unable to determine the financial impact。(X). Commitment events.1.Importance commitment eventsThe external investment contracts and the related financial expenditures which have signed or not yet completelyfulfilled.By June 30, 2013,The Group still has the major external investments RMB 30 million which have signed but stillnot paid, as follows:
    Name of investment projects       Contractual       Prepaid       Unpaid investment     Expected        Remarks
                                   investment      investment          amount          investment
                                    amount          amount                                period
    Invest Nanjing East Asia            300 million               -            30million Terminatio In lawsuit
    Textile     Co.,    Ltd    with                                                                nmachinery and equipments
    2.The big contract which has been signed or is ready to be carried out
    By June 30,2013, The Group still has big contract which has been signed but not paid, a total of RMB 1.71million, as follows:
    Name                of    Contractual        Prepaid              Unpaid      Expected investment Remarks
    investment projects investment amount       investment        investment              period
                                                amount            amount
    Elocation           of                            855,000           855,000      Termination            Termination due to the
    production                                                                                              impact of litigation
    equipments     as   awhole
    Except for the events described above, As     of June 30, 2013, the Group has no other significant commitment events.
                                                                            深圳中冠纺织印染股份有限公司 2013 半年度报告全文2. Information guaranteed at the former period.Failed to fulfill.(XI). Post-balance-sheet events1. Statement on material post-balance-sheet eventsThe group has no statement on material post-balance-sheet events.(XII). Other Important events1. Leasing
                             Type                                      Year-end balance                 Year-beginning balance
    Cost                                                                            96,531,452.00                             96,920,525
    House, Building                                                                 96,531,452.00                             96,920,525
    Accumulated amortization                                                        67,042,648.00                             65,879,041
    House, Building                                                                67,042,648.00                             65,879,041Impairment provisionHouse, Building
    Book value                                                                      29,488,804.00                             31,041,484
    House, Building                                                                 29,488,804.00                             31,041,4842.Items related to measurement of fair value
                                                                                                                             Unit:RMB
                                                    Gains and losses      Accumulative
                                                                                                  Provision for
                               Amount at the       from change of fair change of fair value                         Aamount at the end
             Items                                                                             impairment made in
                             beginning of period    value in current     accounted for as                               of period
                                                                                                 current period
                                                         period         rights and interestsFinancial assets
    3.Trading financial assets           751,542.00                                -187,314.00                                  564,228.00
    Total                                751,542.00                                -187,314.00                                  564,228.00
    Financial liability                         0.00                                                                                    0.003.Foreign financial assets and foreign financial liability
                                                                                                                             Unit:RMB
                                                                               深圳中冠纺织印染股份有限公司 2013 半年度报告全文
                                                       Gains and losses      Accumulative
                                                                                                     Provision for
                               Amount at the        from change of fair change of fair value                           Amount at the end
           Items                                                                                  impairment made in
                             beginning of period       value in current     eccounted for as                               of period
       &n