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神州长城(000018)公告正文

中冠B:2014年半年度报告(英文版)

公告日期:2014-08-28

                             深圳中冠纺织印染股份有限公司 2014 半年度报告全文Shenzhen Victor Onward Textile Industrial Co., Ltd.
            The Semi-annual Report 2014
                    August 2014
                                                               深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
             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 this 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 2014 年半年度报告全文
                                         Table of Contents2014 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. Situation of the Preferred SharesVIII. Information about Directors, Supervisors and Senior ExecutivesIX. Financial ReportX. Documents available for inspection
                                                      深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                          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
                                 Refers
    Yuan                                    RMB yuan
                                   to
                                                                       深圳中冠纺织印染股份有限公司 2014 年半年度报告全文II. Basic Information of the Company1. Company Information
                               Victor Onward A, Victor Onward
    Stock abbreviation                                            Stock code:                           000018、200018
                               BShort form of the Stock
    after changed (if              Victor Onward A, Victor Onward Bapplicable)Stock exchange for
                               Shenzhen Stock Exchangelisting:
    Name in Chinese                深圳中冠纺织印染股份有限公司Chinese Abbreviation (If
                         中冠any)
    English name (If any)          Shenzhen Victor Onward Textile Industrial Co., LtdEnglish abbreviation (If
                               VICTOR ONWARDany)
    Legal Representative           Hu Yongfeng2. Contact person and contact manner
                                                        Board secretary                     Securities affairs Representative
    Name                                        Zhang Jinliang                             Wu Xia
                                            Room 1308, Hualiang Building, Room 1308, Hualiang Building,
    Contact address                             No.2008 Shennan Zhong Road, No.2008 Shennan Zhong Road,
                                            Shenzhen                      Shenzhen
    Tel                                         (755)83668425                            (755)83667895
    Fax                                         (755)83668427                            (755)83668427
    E-mail                                      zhangjl@udcgroup.com                       wux@udcgroup.com3.Other(1)Way to contact the CompanyWhether registrations address, offices address and codes as well as website and email of the Company changed inreporting period or not□ Applicable □√ Not ApplicableThe registered address, office address and their postal codes, website address and email address of the Company did not changeduring the reporting period. The said information can be found in the 2013 Annual Report.
                                                               深圳中冠纺织印染股份有限公司 2014 年半年度报告全文(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 2013 Annual Report.(3)Registration changes of the CompanyWhether registration has changed in reporting period or not□ Applicable √ Not applicableDate/place for registration of the Company, registration nmber for enterprise legal license number of taxationregistration and organization code have no change in reporting period, found more details in annual report 2013.
                                                                        深圳中冠纺织印染股份有限公司 2014 年半年度报告全文III. Summary of Accounting Data and Financial Indicators1.Summary of accounting /Financial DataMay 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)                                     5,077,451.00                  4,990,626.00                 1.74%Net profit attributable to the
    shareholders of the listed company                            738,330.00                 -4,123,606.00               -117.90%(RMB)Net profit after deducting ofnon-recurring gain/loss attributable
                                                              740,248.00                 -1,708,492.00               -143.33%to the shareholders of listed company(RMB)Cash flow generated by business
                                                            2,708,214.00                  1,949,440.00                38.92%operation, net(RMB)
    Basic earning per share(RMB/Share)                                  0.004                           -0.02            -120.00%Diluted gains per
                                                                    0.004                           -0.02            -120.00%share(RMB/Share)(RMB/Share)
    Weighted average ROE(%)                                             0.58%                      -3.53%                  4.11%
                                                As at the end of the          As at the end of last
                                                                                                            YoY+/-(%)
                                                 reporting period                     year
    Gross assets (RMB)                                        195,275,060.00                170,502,789.00                14.53%Net assets attributable to
                                                          127,320,991.00                126,320,072.00                 0.79%shareholders of the Company(RMB)2.Items and amount of non-current gains and losses√Applicable □Not applicable
                                                                                                                      In RMB
                                Items                                          Amount                        NotesGain/loss from disposal of non-current assets, including the part
                                                                                        -1,918.00offset with the provision for impairment of assets
    Total                                                                                   -1,918.00              --For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 oninformation disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses andits 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.
                                                              深圳中冠纺织印染股份有限公司 2014 年半年度报告全文□ Applicable√ Not applicableIn reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss.
                                                                  深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                 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 productionsuspense while the parent company and five subsidiaries continued the suspension of printing and dyeing businessdue to the production suspense of the printing and dyeing mill. The parent company, Nanhua Company and HongKong Company maintained daily operation through property lease. The other three subsidiaries had suspendedbusiness. The Company planned to invest in the joint venture project of Nanjing East Asia Textile Printing andDyeing Co., Ltd. with partial machinery and equipment. Due to change of foundation of joint venture andprospect of the industry, the capital increase was not completed. the income from house rent was the main part ofnet 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 andcontinuous development of the Company.The controlling shareholders and management of thecompany attached great importance to the company’s continued operational problems, intended toadopt a variety of ways, including selling the assets and business of the company or its subsidiaries,joint veture and expand and existing business, in order to improve the company’s assets quality,profitability and the capacity for sustainable development.
    In reporting period, on June 16, 2014, the company began planning a major asset reorganization, the companyand related parties are actively promoting the work.II. Analysis on principal BusinessYear-on-year changes in major financial statistics
                                                                                                                In RMB
                          This report period      Same period last year    YOY change(%)           Cause changeOperating income
                                  5,077,451.00              4,990,626.00                1.74%
                                                                                                Reduction of rental pr
    Operating cost                    1,446,029.00              2,073,313.00              -30.26%
                                                                                                operty depreciationAdministrative
                                  3,550,910.00              4,050,058.00              -12.32% Reduced expensesexpenses
    Financial expenses                   -58,719.00               273,998.00             -121.43% Interest on debt reduced
    Net cash flows from               2,708,214.00              1,949,440.00              38.92% Rent increase
                                                                            深圳中冠纺织印染股份有限公司 2014 年半年度报告全文operating activities
                                                                                                                Disposal of machineryNet cash flows from
                                            -64,702.00            5,024,937.00                     -101.29% and equipment of lastinvesting activities
                                                                                                                year
    Net cash flows from                                                                                             Payment of loan
                                          -6,291,275.00         -10,000,000.00                       -37.09%
    financing activities                                                                                            principal to Union GroupNet increase in cash
                                          -3,253,848.00          -3,458,795.00                        -5.93%and cash equivalentsMajor changes in profit composition or cources during the report period□ Applicable √ Not applicableThe profit composition or sources of the Company have remained largely unchanged during the report period.Delay of future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capitalreorganization report into this report period.\□ Applicable √ Not applicableNo future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capitalreorganization report into this report period.\Implementation of business plans disclosed in previous periods in this period.Not applicableIII. Business composition
                                                                                                                                   In RMB
                                                                                                   Increase/decrease
                                                                               Increase/decrease                        Increase/decrease
                                                                                                      of rincipal
                                                                               of reverue in the                          of gross profit
                                                             Gross profit                          business cost over
                         Turnover          Operation cost                       same period of                          rate over the same
                                                               rate(%)                              the same period
                                                                                 the previous                             period of the
                                                                                                   of previous year
                                                                                   year(%)                              previous year (%)
                                                                                                          (%)Classification of Industry
    Leasing Industry         5,077,451.00         1,446,029.00          71.52%                1.74%             -30.26%                13.06%Classification of products
    Lease                    5,077,451.00         1,446,029.00          71.52%                1.74%             -30.26%                13.06%Classification of Area
    China                    4,334,045.00         1,225,313.76          71.73%                5.22%             -18.20%                 8.10%
    Hong Kong                    743,406.00         220,715.00          70.31%              -14.71%             -61.64%                36.32%
                                                                                   深圳中冠纺织印染股份有限公司 2014 年半年度报告全文IV. Analysis on investment Status1. Foreign Equity investment(1)External investment√ Applicable □ Not applicable
                                                               External investment
    Investment amount (January-June                 Investment Amount (January-June
                                                                                                                  Change rate(%)
                  2014)(RMB)                                       2013)(RMB)
                                          0.00                                                 0.00                                        0.00%
                                                              Particulars of investees
                      Name                                      Principal business                    Proportion in the investees’ equity(%)
    Zhejiang Union Hangzhou Bay
                                                                   Real estate                                                            25.00%
         Chuangye Co., Ltd.2.Information of trust management, derivative investment and entrusted loan(1)Trust management√ Applicable □ Not applicable
                                                                                                                                          In RMB
                                                                                                                  Impairme
                                                                                                      Principal                           Actual
                         Related                                                                                     nt
    Title of   Relations                 Type of     Amount                     Expired     Mean of retrieved                    Predicted gain/loss
                        transactio                             Started on                                         provision
    trustee      hip                    product     entrusted                    on        reward         this                   income     of the
                         n or not                                                                                 provided
                                                                                                       period                             period
                                                                                                                  (If any)
                                     Zhongyin
            Not                      Stationary                                        4.90%
    Bank of                                                        April 17, October
            Related     No           AMZYP             100                             fixed                                       2.36
    China                                                      2014         13, 2014
            party                    WHQ141                                            income
                                     66
                                     Zhongyin
            Not                      Stationary                                        4.80%
    Bank of                                                        April 17, July 14,
            Related     No           AMZYP             100                             fixed                                       1.16
    China                                                      2014         2014
            party                    WHQ141                                            income
                                     65
                                     Zhongyin
            Not                                                                        4.70%
    Bank of                              Jizhitong                 April 18, June 6,
            Related     No                             100                             fixed               100                                 0.6
    China                            AMZYJZ                    2014         2014
            party                                                                      income
                                     T-LPA140
                                                                                  深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                    94
                                    Zhongyin
            Not                     Jizhitong
    Bank of                                                       April 18, August 8, 5% fixed
            Related    No           AMZYJZ              150                                                                              2.26
    China                                                     2014         2014            income
            party                   T-LPA140
                                    96
                                    Zhongyin
            Not                     Stationary                                             4.90%
    Bank of                                                       June 9,      Septembe
            Related    No           AMZYP               150                                fixed                                         1.83
    China                                                     2014         r 9, 2014
            party                   WHQ142                                                 income
                                    41
    Total                                                   600        --          --               --              100            0         7.61           0.6
    Resource of capital trusted                      Self fnds
    Accumulated principal and gains overdue                                                                                                                   0Date of announcement made by the boardabout approval of trusted funancialserviceDate of announcement made by theShareholders’ Meeting about approvale oftrusted financial service3. Analysis to main subsidiaries and shareholding companies√ Applicable □ Not applicableParticulars about main subsidiaries and shareholding companies
                                                                                                                                                  In 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      123,836,44 52,262,552.                            1,022,102
              Subsidiary                                                                                        743,406.00                   1,022,102.00
    Onward                        industry      trade            (HKD)                     5.00              00                        .00Co.Ltd
                                            Textile
    Nanhua                        Textile                        85,494,700 23,908,176. -16,787,251 3,292,600.0 474,187.0
              Subsidiary                    Printing and                                                                                      472,269.00
    Company                       industry                       (HKD)                      00            .00               0              0
                                            dyeingZhejiang
    Union                                       Real estate
              Shareholding Real estate                       247,476,83 1,385,349,9 309,092,00 30,638,800. 3,424,787
    Hangzhou                                         Develop                                                                                     3,428,626.00
              companies        Industry                      2.6                        51.00         0.00               00          .00
    Bay                                              mentChuangye
                                                                           深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Co., Ltd.V. Prediction of business performance for Jan-Sept 2014.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 : Make up the deficitsType of date filled for the prediction:Interval figures
                                                                   Same period of
                                  Year beginning to end of next
                                                                    the previous                Increase or decrease%
                                           report period
                                                                        yearEstimated amount of
    accumulative net                             0 --            100               -53 --                      -288.68% --      -100.00%profit(RMB’0000)Basic earnings per shares
                                             0 --          0.006           -0.003 --                       -300.00% --      -100.00%(Yuan/share)
                                  Due to the effect of the performance of Zhejiang Union Hangzhou Bay Ventures Co., Ltd. accounteNotes to forenotice of
                                  d for on equity basis, the accumulative net profit for the period from January to September 2014 isearnings
                                  estimated to be profitable and about RMB 0 to RMB 1 million.VI. Explanation by the Board of Directors and the Supervisory Committee about the ― non-standard audit report‖ issued by the CPAsfirm for the reporting period.□ Applicable √ Not applicableVII. Explanation by the Board of Directors about the ― non-standard audit report ― for lastyear.
    √ Applicable   □ Not applicable1.Basic information
    Da Hua Certified Public Accountants(Special General Partnership) issued unqualified auditor's report withparagraph of emphasized matters for the Company's financial statements for 2013 Basic information ofemphasized matters: Since March 2007, Shenzhen Victor Onward Textile Industrial Co., Ltd. stopped productionand dismissed most of workers. And most subsidiaries of the company had stopped production and it maintaineddaily operation by house leasing., Shenzhen Victor Onward Textile Industrial Co., Ltd. had disclosed itsimprovement measures in Note 11of Financial Statement,but its sustainable operation ability is still uncertain.2. Basic opinions of certified public accountants on such matter:
    Da Hua Certified Public Accountants(Special General Partnership) accepted entrustment, completed the auditof the financial statements of the Company for 2013 and issued unqualified auditor's report with paragraph ofemphasized matters for the Company's financial statements for 2013. In accordance with No. 14 Rule forPreparation and Report of Information Disclosure by Companies Publicly Issuing Securities - Non-standardUnqualified Audit Opinions and Treatment of Matters Involved Therein, relevant notes are as follows:
                                                                           深圳中冠纺织印染股份有限公司 2014 年半年度报告全文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 hasinstituted 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.3.The opinions of the board of directors, supervisory committee and management of the Companyon 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.4. Extent of influence of this matter on the Company:
    This event greatly impacted the production & operation activities and sustainable development of company.5.The concrete measures of eliminating this matter and its influence
      The controlling shareholders and management of the company attached great importance to the company'scontinued operational problems, intended to adopt a variety of ways, including selling the assets and business ofthe company or its subsidiaries, joint venture and expand an existing business, in order to improve the company'sassets quality, profitability and thecapacity for sustainable development.VIII. Profit distribution carried out in the report periodExecution or adjustment of profit distribution, especially cash dividend, and capitalizing of reserves in the reportperiod.□ Applicable √ Not applicablePrevious year’s profit distribution plan was no profit distribution and shares converted from capital reserve eitherIX. Preplan for profit distribution and turning capital reserve into share capital in the reporting period□ Applicable √ Not applicableThe Company planed that no to distribute cash dividend, bonus shares and there was no turning of capital reserve
                                                                       深圳中冠纺织印染股份有限公司 2014 年半年度报告全文into share capital.IX. Statement of such activities as reception, research, communication, interview in the reporting period
    √ Applicable    □ Not applicable
                                                                                                           Discussion topics and
    Reception time        Reception place    Way of reception    Types of visitors    Visitors received
                                                                                                           provision of materials
                      BOD office of the                                                                 Enquiry the company
    April 3, 2014                             By phone            Individual           Investor
                       Company                                                                          situation
                      BOD office of the                                                                 Inquire the reasons for the s
    June 9, 2014                              By phone            Individual           Investor
                      Company                                                                           uspension of company
                      BOD office of the                                                                 Inquire the corporate
    June 30, 2014                             By phone            Individual           Investor
                      Company                                                                           restructuring matters
                                                     V. Important Events1.Governance of the CompanyThere is no difference between the actual corporate governance and the requirements of Company Law and the relevant provisions of China Securities Regulatory Commission.II. Major lawsuits and Arbitration affairs√ Applicable□ Not applicable
      Basic        Amount      Whether        Progress
                                                                                       Judgment
    information of involved       comes to           of     Trial results                            Disclosure Index of
                                                                                      enforcement
    lawsuits(Arbitra (RMB’0000     accrual      lawsuits(a and influence                                date    disclosure
                                                                                        situation
      tion)          )      liability or not rbitration)On June 4, 2012,The company has
                                                                                                                        Announcemeinstituted court
                                                                                                                        nt No.action against
                                                                                                                        2012-0614)below three
                                                     The case                                                           Securitiescompanies at
                                                     hasn’t                                                            Times , Hong
    Jiangsu Province             4,792 No                                                                   June 16, 2012
                                                     yet been                                                           KongHigher People's
                                                     tried                                                              CommercialCourt, and asked
                                                                                                                        Daily andto terminate the
                                                                                                                        www.cninfo.contracts and
                                                                                                                        com.cnagreements signedwith Nanjing East
                       深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Asia TextilePrinting & DyeingCo., Ltd., NanjingEast AsiaInvestment &DevelopmentGroup Co., Ltd.and Hong KongYaojunxing Co.,Ltd., who shall payRMB47,922,902.92 to the companyfor the pecuniaryloss 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 onJune 14, 2012. TheDefendant NanjingEast Asia TextilePrinting andDyeing Co., Ltd.made objection tothe jurisdiction ofthis case during theperiod of defencesubmission. Thecourt formed acollegial benchand conductedexaminationaccording to law.
                                                              深圳中冠纺织印染股份有限公司 2014 年半年度报告全文On December 24,2013, JiangsuHigher People'sCourt issued CivilRuling Paper toreject the objectionmade by NanjingEast Asia TextilePrinting andDyeing Co., Ltd.about thejurisdiction.((2013) SSWXCZNo. 0001 CivilRuling Paper ofJiangsu HigherPeople's CourtCivil RulingPaper)III.Query form media□ Applicable√ Not applicableIn the reporting year, the Company had no query from mediaIV. Bankruptcy or Reorganization Events□ Applicable √ Not applicableThere Company was not involved in any bankruptcy or reorganization events in the reporting period.V. Transaction in Assets1. Purchase of assets□ Applicable √ Not applicableThere is no purchase of assets in the Company during the reporting period.2. Sale of assets□ Applicable √ Not applicableThere is no sale of assets in the Company during the reporting period3. Business combination□ Applicable √ Not applicableThere is no business combination in the Company during the reporting period.VI. Implementation and Influence of Equity Incentive Plan of the Company□ Applicable √ Not applicableThere is no equity incentive plan and its implementation in the Company during the reporting period.VII. Significant related-party transactions
                                                                          深圳中冠纺织印染股份有限公司 2014 年半年度报告全文1. Related transactions in connection with daily operation□ Applicable √ Not applicableThere is no any related party transaction concerning daily operation of the Company of the reporting period.2. Related-party transactions arising from asset acquisition or sale□ Applicable √ Not applicableThe Company was not involved in any related-party transactions arising from asset acquisition or sale during thereporting period.3. Related-party transitions with joint investments□ Applicable √ Not applicableThe Company was not involved in any related-party transaction with joint investments during the reportingperiod.4. Credits and liabilities with related parties□ Applicable √ Not applicableThere is no any credit and liability with related parties of the Company of the reporting period.5. Other significant related-party transactions□ Applicable √ Not applicableThe Company was not Other significant related-party transactions during the reporting period.VIII. Particulars about the non-operating occupation of funds by the controlling shareholderand other related parties of the Company□ Applicable √ Not applicableThe Company was not involved in the non-operating occupation of funds by the controlling shareholder and otherrelated parties during the reporting period..IX. Particulars about significant contracts and their fulfillment1. Particulars about trusteeship, contract and lease(1) Trusteeship□ Applicable √ Not applicableThere was no any trusteeship of the Company in the reporting period.(2) Contract□ Applicable √ Not applicableThere was no any contract of the Company in the reporting period.(3) Lease□ Applicable √ Not applicableThere was not involved in ant lease of the Company in the reporting period.
                                                               深圳中冠纺织印染股份有限公司 2014 年半年度报告全文2. Guarantees provided by the company□ Applicable √ Not applicableThere was not involved in any Guarantees provided by the company in the reporting period.(1) Particulars about illegal external guarantee□ Applicable √ Not applicableThere was no particular about illegal external guarantee of the Company in the reporting period.3. Other significant contracts□ Applicable √ Not applicableThere was no other significant contract of the Company in the reporting period.4. Other significant transactions□ Applicable √ Not applicableThere was no other significant transaction of the Company in the reporting period.X. Commitments made by the Company or shareholders holding over 5% of the Company’s shares in thereporting period or such commitments carried down into the reporting period√ Applicable □Not applicable
                                         Commitment                    Time of making      Peiod of
               Commitment                                 Contents                                       Fulfillment
                                            maker                       commitment        commitment
                                                      Committed
                                                      when the
                                                      restricted-for-
                                                      sale shares
                                                      from the
                                                      shares
                                                      restructuring
                                                      were listed for
                                                      circulation in
                                                      the market: i.
                                                      if they plan to
                                       Union Holdings                                                  Under
    Commitment on share reform                            sell the shares June 3, 2009      In effect
                                       Co., Ltd                                                        Fulfillment
                                                      through the
                                                      securities
                                                      exchange
                                                      system in the
                                                      future, and the
                                                      decrease of
                                                      the shares
                                                      they hold
                                                      reaches 5%
                                                      within 6
                                                      months after
                                                                       深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                                              the first
                                                              decrease, they
                                                              will disclose
                                                              an
                                                              announcemen
                                                              t indicating
                                                              the sale
                                                              through the
                                                              company
                                                              within two
                                                              trading days
                                                              before the
                                                              first decrease;
                                                              ii. They shall
                                                              strictly
                                                              observe the
                                                              ―Guidelines
                                                              on Transfer of
                                                              Restricted-for
                                                              -sale Original
                                                              Shares of
                                                              Listed
                                                              Companies‖ a
                                                              nd the
                                                              provisions of
                                                              the relevant
                                                              business
                                                              principles of
                                                              Shenzhen
                                                              Stock
                                                              Exchange.Commitment in the acquisition
    report or the report on equity               Not ApplicablechangesCommitment made upon the assets
                                             Not Applicablereplacement
    Commitments made upon issuance               Not ApplicableOther commitments made to minority
                                             Not Applicableshareholders
    Executed timely or not?                      YesDetailed person for failing to execute and
                                             Not Applicablethe next plan( If any)
                                                               深圳中冠纺织印染股份有限公司 2014 年半年度报告全文XI. Particulars about engagement and disengagement of CPAs firmWhether the semi-annual financial report had been audited?□ Yes √ NoXII. Punishment and Rectification□ Applicable √ Not applicableThere was no any punishment and rectification of the Company in the reporting period.XIII. Reveal of the delisting risks of illegal or violation□ Applicable √ Not applicableThere was no any delisting risk of illegal or violation of the Company in the reporting period.XIV. Explanation about other significant matters√ Applicable □ Not applicable1.Announcement on lawsuits.of Shenzhen Victor Onward Textile Industrial Co., Ltd. AnnouncementNo.:2012-0614,Announcement Date: June 16, 2012, Securities Times,Hong Kong Commercial Daily andwww.cninfo.com.cn.2.The company’s annual financial report for 2013 was audited by Dahua Accounting Firm (special generalpartnership). The audit report showed that the company’s net profits in 2013 was RMB7,849,904, the net profitswhich belong to the shareholders of quoted company was RMB8,214,810. According to the related regulations of―Listing Rules of The Shenzhen Stock Exchange‖, the situation in which the company’s A, B stocks would bewarned to retrieve the market has been removed, and there is no situation of other risk warnings. With theapproval of Shenzhen Stock Exchange, from March 13, 2014, the risk warning of retrieving from the market andother risk warnings for the company’s stock exchange would be removed. The matters mentioned above wereannounced in Securities Times,Hong Kong Commercial Daily and www.cninfo.com.cn. on March 12, 2014, theAnnouncement No.: 2014-0659.3. ―The Announcement on a part of Shenzhen Victor Onward Textile Industrial Co., Ltd. Factory BuildingsCollected by the Government‖, the Management Committee of Shenzhen Dapeng District released ―The DecisionAnnouncement on the Management Committee of Shenzhen Dapeng New District Collecting Houses‖ which says,the committee decided to collect the related housing estates located in Kuixin community for the need to build apeople’s hospital in Dapeng new district. The housing estates which would be collected this time includeKuichong Company’s part of the buildings which haven’t got estate right certificate, and the area of thesebuildings is 18,000 square meters. The matters mentioned above were announced in Securities Times,Hong KongCommercial Daily and www.cninfo.com.cn. on June 24, 2014, the Announcement No.: 2014-0673.4.During the period of report, On June 16, 2014, the company started planning the reorganization of the majorassets. At present the company and the other parties are promoting all the work actively. For relevant matters,please refer to ―The Announcement on the Reorganization and Suspension of Major Assets in Shenzhen VictorOnward Textile Industrial Co., Ltd ‖, ―The Announcement on the Progress of Major Assets’ Reorganization inShenzhen Victor Onward Textile Industrial Co., Ltd ‖ and ―The Announcement on the Application for ContinuousSuspension of Major Assets after the Expiration of Last Suspension in Shenzhen Victor Onward Textile IndustrialCo., Ltd‖, which were released in Securities Times,Hong Kong Commercial Daily and www.cninfo.com.cn onJune 16 2014, June 23,2014, June 30,2014, July 7,2014, July 14,2014, July 21,2014, July 28,2014, August 4,2014 ,
                                      深圳中冠纺织印染股份有限公司 2014 年半年度报告全文August 11 ,2014 and August 15,2014.
                                                                                深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                         VI. Change of share capital and shareholding of Principal Shareholders
    1.Changes in share capital
                                                                                                                                   In shares
                               Before the change                             Increase/decrease(+,-)              After the Change
                           Amount        Proportion                                    Capitalization
                                                              Share           Bonus
                                                                                        of common Other Subtotal   Quantity       Proportion
                                                             allotment        shares
                                                                                       reserve fundI. Share with
    conditional                         0               0.00%                0         0               0     0     0              0       0.00%subscription1.State-owned
                                    0               0.00%                0         0               0     0     0              0       0.00%shares2..Staee-owned
                                    0               0.00%                0         0               0     0     0              0       0.00%legal person shares3.Other domestic
                                    0               0.00%                0         0               0     0     0              0       0.00%sharesOf which:
    Domestic legal                      0               0.00%                0         0               0     0     0              0       0.00%person sharesDomestic natural
                                    0               0.00%                0         0               0     0     0              0       0.00%person shares4.Share held by
                                    0               0.00%                0         0               0     0     0              0       0.00%foreign investorsOf which:Foreign
                                    0               0.00%                0         0               0     0     0              0       0.00%legal person sharesForeign natural
                                    0               0.00%                0         0               0     0     0              0       0.00%person sharesII. Shares with
    unconditional             169,142,356              100.00%               0         0               0     0     0 169,142,356       100.00%subscription
    1.Common        shares
                           99,720,453              58.96%                0         0               0     0     0 99,720,453         58.96%in RMB2.Foreign shares in
                           69,421,903              41.04%                0         0               0     0     0 69,421,903         41.04%domestic market
    3.Foregin shares in                 0               0.00%                0         0               0     0     0              0       0.00%
                                                                                深圳中冠纺织印染股份有限公司 2014 年半年度报告全文overseas market
    4.Other                             0                0.00%               0         0                    0          0       0              0      0.00%III. Total of capital
                         169,142,356               100.00%               0         0                    0          0       0 169,142,356        100.00%shares
    Reasons for share changed:
    □ Applicable √ Not applicable
    Approval of Change of Shares
    □ Applicable √ Not applicable
    Ownership transfer of share changes
    □ Applicable √ Not applicable
    Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
    common shareholders of Company in latest year and period
    □ Applicable √ Not applicable
    Other information necessary to disclose for the company or need to disclosed under requirement from security
    regulators
    □ Applicable √ Not applicable
    Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability
    of the Company
    II. Shareholders and actual controlling shareholder
                                                                                                                                              In Shares
                                                                         Total number of preferred
                                                                         shareholders that had restored
    Total number of common
                                                                         the
    shareholders at the end of the                                 9,948                                                                              0
                                                                         voting right at the end of the
    reporting period
                                                                         reporting period (if any) (note
                                                                         8)
                                          Shareholding of shareholders holding more than 5% shares
                                                                                                        Amount              Number os share
                                                                                           Amount
                                                                                Changes                       of               pledged/frozen
                                               Proportion of    Number of                     of
                             Nuture of                                             in                   un-restri
    Shareholders                               shares held    shares held at              restricte
                            shareholder                                         reportin                    cted
                                                  (%)         period -end                d shares                    State of share      Amount
                                                                                g period                    shares
                                                                                             held
                                                                                                            held
                        Domestic Non-
    Union Holdings                                                                                            43,141,
                        State-owned legal            25.51%      43,141,032 0                       0
    Co., Ltd.                                                                                                    032
                        person
    STYLE-SUCCES                                                                                              24,466,
                        Foreign legal person         14.46%      24,466,029 0                       0
    S LIMITED                                                                                                    029
                                                                        深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Rich Crown
                                                                                            6,114,55
    Investment Co.,    Foreign legal person           3.62%      6,114,556 0                0
                                                                                                  6Ltd.
    Union              Domestic Non-
                                                                                             5,681,0
    Development        State-owned legal              3.36%      5,681,089 0                0
                                                                                                 89
    Group Co., Ltd.    personLiuzhou Jiali
                   Domestic Non- legal
    Real estate                                                                                  4,890,0
                   person State-owned             2.89%      4,890,000 0                0
    Development                                                                                      00
                   legal personCo., ltd.
                   Domestic Natural                                                          2,070,6
    Zeng Ying                                         1.22%      2,070,600 0                0
                   person                                                                        00Shenzhen Textile
                   State-owned                                                               1,722,7
    (Group)Holdings                                   1.02%      1,722,794 0                0
                   Legal person                                                                  94LtdLiuzhou
                   Domestic Non-
    Ruiheng                                                                                      1,720,1
                   State-owned legal              1.02%      1,720,100 0                0
    Mechatronics                                                                                     00
                   personCo., Ltd.
                   Domestic Natural
    Jiang Jiayuan                                     0.58%        978,057 0                0 978,057
                   personKGI ASIA
                   Foreign legal person           0.55%        927,450 0                0 927,450LIMITEDStrategy investors or generallegal person becomes top 10
                                  N/Ashareholders due to rights issued(if applicable)See Notes 3)
                                          The controlling shareholder of the above-mentioned largest shareholder Shenzhen UnionExplanation on associated relationship
                                          Holdings Ltd.and third shareholder Rich Crown Investment Co., Ltd.. Is Unionamong the aforesaid shareholders
                                          Development Group Ltd.
                                  Shareholding of top 10 shareholders of unrestricted shares
                                            Quantity of unrestricted shares held at the                    Share type
       Name of the shareholder
                                                   end of the reporting period                    Share type        Quantity
                                                                                               RMB Common
    Union Holdings Co., Ltd.                                                          43,141,032                             43,141,032
                                                                                               shares
                                                                                               Foreign shares
                                                                                               placed in
    STYLE-SUCCESS LIMITED                                                             24,466,029                             24,466,029
                                                                                               domestic
                                                                                               exchange
    Rich Crown Investment Co., Ltd.                                                    6,114,556 Foreign shares               6,114,556
                                                                         深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                                                                                placed in
                                                                                                domestic
                                                                                                exchange
                                                                                                RMB Common
    Union Development Group Co., Ltd.                                                   5,681,089                             5,681,089
                                                                                                shares
    Liuzhou Jiali Real estate Development                                                           RMB Common
                                                                                    4,890,000                             4,890,000
    Co., ltd.                                                                                       shares
                                                                                                Foreign shares
                                                                                                placed in
    Zeng Ying                                                                           2,070,600                             2,070,600
                                                                                                domestic
                                                                                                exchange
                                                                                                RMB Common
    Shenzhen Textile (Group)Holdings Ltd                                                1,722,794                             1,722,794
                                                                                                shares
    Liuzhou Ruiheng Mechatronics Co.,                                                               RMB Common
                                                                                    1,720,100                             1,720,100
    Ltd.                                                                                            shares
                                                                                                RMB Common
    Jiang Jiayuan                                                                         978,057                               978,057
                                                                                                shares
                                                                                                Foreign shares
                                                                                                placed in
    KGI ASIA LIMITED                                                                      927,450                               927,450
                                                                                                domestic
                                                                                                exchangeExplanation on associated relationshipor consistent action among the top 10
    shareholders of non-restricted            The controlling shareholder of the above-mentioned largest shareholder Shenzhen Unionnegotiable shares and that between the Holdings Ltd.and third shareholder Rich Crown Investment Co., Ltd.. Is Union
    top 10 shareholders of non-restricted     Development Group Ltd.negotiable shares and top 10shareholders
                                          Among the shareholders above, Liuzhou Jiali Real estate Development Co., ltd. holds
                                            2,668,900 shares of the Company through stock account with credit transaction andNotes to the shareholders involved in
                                            guarantee of Guohai Securities Co., Ltd. It holds 2, 221,100 shares through ordinaryfinancing securities (if any)(See Notes
                                            stock account. Liuzhou Ruiheng Mechatronics Co., Ltd. holds 1,720,100 shares of the4)
                                            Company through stock account with credit transaction and guarantee of Guohai
                                            Securities Co., Ltd.Did any shareholder of the Company carry out an agreed buy-back in the reorting period?□ Yes √ NoShareholders of the Company had not carried out any agreed buy-back in the reporting period.III. 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 2014 年半年度报告全文□ Applicable √ Not ApplicableThere was no any change of the controlling shareholder of the Company in the reporting period.Change of the actual controller in the reporting period□ Applicable √ Not applicableThere was no any change of the actual controller of the Company in the reporting period.IV. Particulars on shareholding increase scheme during the reporting period proposed or implemented by theshareholders and act-in-concert persons□ Applicable √ Not applicableWithin the scope known to the Company, there was no any shareholding increase scheme during the reportingperiod proposed or implemented by the shareholders and act-in-concert persons.
                                                                深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                       Section VII. Situation of the Preferred SharesI.Situation of preferred stock issuance and listing during the reporting period□ Applicable √ Not ApplicableII.Situation of number of preference shareholders and shareholding□ Applicable √ Not ApplicableIII.Situation of repurchase or conversion of preferred shares1.situation of repurchase of preferred shares□ Applicable √ Not Applicable2.situation of conversion of preferred shares□ Applicable √ Not ApplicableIV.Situation of restoration and usage of voting preference shares□ Applicable √ Not ApplicableV.Accounting policies and reasons adopted by preferred shares□ Applicable √ Not Applicable
                                                                        深圳中冠纺织印染股份有限公司 2014 年半年度报告全文VIII. 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. For details, see the 2013annual report.II. Changes in directors, supervisors and senior management staffs
    √ Applicable □   Not Applicable
      Names               Titles           Types              Date                                   Causes
                                                                           Mrs. Chen Jinmei resigned for personal reasons to the
                    Independent                                            Board. The application will take effect after the election
    Chen Jinmei                          Dismissal          January 21, 2014
                    director                                               of new independent directors to fill the vacancy in the
                                                                           Company Shareholders' Meeting.
                                                             深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                             IX. 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.
                                                                                                           In RMB
                 Items                        Year-end balance                    Year-beginning balance
          Current asset:
          Monetary fund                                      90,249,062.00                         63,502,910.00
       Settlement provision
        Outgoing call loan
      Trading financial assets
          Bill receivable                                                                           1,500,000.00
        Account receivable
           Prepayments                                           13,230.00                             25,192.00
       Insurance receivable
      Reinsurance receivable
    Provisions of Reinsurance
       contracts receivable
        Interest receivable                                                                            79,340.00
       Dividend receivable
    Other account receivable                                    54,318.00                            311,279.00Repurchasing of financial assets
               Inventories
    Non-current asset due in 1 year
        Other current asset
                                   深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    Total of current assets        90,316,610.00                        65,418,721.00
    Non-current assets:Loans and payment on other’s
      behalf disbursed
    Disposable financial asset         604,282.00                           582,942.00Expired investment in possess
    Long-term receivable
    Long term share equity
                                   68,230,192.00                        66,931,685.00
        investment
    Property investment            22,195,871.00                        23,458,153.00
         Fixed assets               7,028,175.00                         7,191,205.00
    Construction in progress
    Engineering material
    Fixed asset disposalProduction physical assets
        Gas & petrol
      Intangible assets             1,800,306.00                         1,820,459.00
        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      104,958,450.00                       105,084,068.00
        Total of assets           195,275,060.00                       170,502,789.00
      Current liabilities
      Short-term loans
    Loan from Central BankDeposit received and hold for
           others
    Call loan receivedTrade off financial liabilities
         Bill payable
      Account payable               3,199,529.00                         3,186,939.00
      Advance payment               1,076,979.00                         1,076,531.00
                                        深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Selling of repurchased financial
              assetsFees and commissions receivable
    Employees’ wage payable             1,021,045.00                         1,109,352.00
           Tax payable                   4,209,279.00                         4,250,191.00
         Interest payable
        Dividend payable                 1,215,946.00                         1,215,946.00
      Other account payable            46,781,726.00                         22,663,345.00
    Reinsurance fee payable
    Insurance contract provision
    Entrusted trading of securities
    Entrusted selling of securitiesNon-current liability due in 1 year
      Other current liability            1,322,263.00                         1,547,263.00
    Total of current liability        58,826,767.00                         35,049,567.00
    Non-current liabilities:
         Long-term loan                  1,050,038.00                         1,101,349.00
          Bond payable
       Long-term payable                 8,309,417.00                         8,230,694.00
         Special payable
       Expected liabilities
    Differed income tax liability           669,475.00                           702,735.00
    Other non-current liabilities          836,792.00                           836,792.00
    Total of non-current liabilities     10,865,722.00                         10,871,570.00
         Total of liability            69,692,489.00                         45,921,137.00
         Owners’ equity
           Share capital              169,142,356.00                        169,142,356.00
         Capital reserves              39,660,812.00                         39,645,048.00
      Less:Shares in stock
         Special reserves
         Surplus reserves              26,704,791.00                         26,704,791.00
    Common risk provision
       Undistributed profit           -107,320,801.00                      -108,059,131.00
    Different of foreign currency
                                         -866,167.00                         -1,112,992.00
           translation
                                                            深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Total of owner’s equity belong to
                                                           127,320,991.00                       126,320,072.00
       the parent company
    Minority shareholders’ equity                            -1,738,420.00                        -1,738,420.00
      Total of owners’ equity                             125,582,571.00                       124,581,652.00
    Total of liabilities and owners’
                                                           195,275,060.00                       170,502,789.00
               equityLegal representative :Hu YongfengPerson-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.
                                                                                                        In RMB
                Items                        Year-end balance                  Year-beginning balanceCurrent asset:
    Monetary fund                                               40,923,537.00                        10,557,501.00Trading financial assets
    Bill receivable                                                                                   1,500,000.00Account receivablePrepaymentsInterest receivableDividend receivable
    Other account receivable                                    81,520,540.00                        80,967,376.00InventoriesNon-current asset due in 1 yearOther current asset
    Total of current assets                                    122,444,077.00                        93,024,877.00Non-current assets:Disposable financial assetExpired investment in possessLong-term receivable
    Long     term         share   equity
                                                            36,788,953.00                        36,788,953.00investment
                                         深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    Property investment                       4,554,989.00                         4,723,575.00
    Fixed assets                              4,384,712.00                         4,384,712.00Construction in progressEngineering materialFixed asset disposalProduction physical assetsGas & petrol
    Intangible assets                         1,800,306.00                         1,820,459.00R & D petrolGoodwill
    Long-germ         expenses    to   beamortizedDiffered income tax assetOther non-current asset
    Total of non-current assets              47,528,960.00                        47,717,699.00
    Total of assets                         169,973,037.00                       140,742,576.00Current liabilitiesShort-term loansTrade off financial liabilitiesBill payable
    Account payable                             113,344.00                           113,344.00
    Advance payment                            302,540.00                           302,540.00
    Employees’ wage payable                   602,181.00                           677,181.00
    Tax payable                                719,773.00                           767,076.00Interest payableDividend payable
    Other account payable                    31,254,614.00                         1,158,902.00Non-current liability due in 1 year
    Other current liability                   1,322,263.00                         1,547,263.00
    Total of current liability               34,314,715.00                         4,566,306.00Non-current liabilities:Long-term loanBond payableLong-term payable
                                                            深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Special 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
    Total of liability                                          39,331,645.00                         9,583,236.00Owners’ 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                                       -92,018,615.00                       -91,500,667.00Different of foreign currency
                                                            -4,398,234.00                        -4,398,234.00translation
    Total of owners’ equity                                   130,641,392.00                       131,159,340.00Total of liabilities and owners’
                                                           169,973,037.00                       140,742,576.00equityLegal representative :Hu YongfengPerson-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.
                                                                                                        In RMB
                Items                     Amount in this period                 Amount in last period
    I. Income from the key business                              5,077,451.00                         4,990,626.00
    Incl:Business income                                        5,077,451.00                         4,990,626.00Interest incomeInsurance fee earnedFee and commission received
    II. Total business cost                                      5,194,360.00                         6,628,035.00
                                              深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    Incl:Business cost                           1,446,029.00                          2,073,313.00Interest expenseFee and commission paidInsurance discharge paymentNet claim amount paidInsurance policy dividend paidInsurance policy dividend paidReinsurance expenses
    Business tax and surcharge                      256,140.00                           230,666.00Sales expense
    Administrative expense                        3,550,910.00                          4,050,058.00
    Financial expenses                              -58,719.00                           273,998.00Asset impairment lossAdd:Gains from change of firvalue (―-‖for loss)
    Investment gain(―-‖for loss)                857,157.00                            -71,083.00
    Incl: investment       gains     from
                                                857,157.00                            -71,083.00affiliatesGains from currency exchange(―-‖for loss)
    III. Operational profit(―-‖for loss          740,248.00                         -1,708,492.00
    Add:Non-business income                                                               3,929.00
    Less:Non business expenses                       1,918.00                          2,419,043.00Incl : Loss from disposal of
                                                  1,918.00                            19,043.00non-current assets
    IV.Total profit(―-‖for loss)                  738,330.00                         -4,123,606.00Less:Income tax expenses
    V. Net profit(―-‖for net loss)              738,330.00                         -4,123,606.00Including: Net profit realized bythe entity taken over before thetakeoverNet profit attributable to the
                                                738,330.00                         -4,123,606.00owners of parent companyMinority shareholders’ equity
    VI. Earnings per share:                 --                                --
    (I)Basic earnings per share                       0.004                                  -0.02
                                                              深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    (II)Diluted earnings per share                                          0.004                                   -0.02
    VII. Other comprehensive income                                     262,589.00                         -609,251.00
    VIII. Total comprehensive income                               1,000,919.00                          -4,732,857.00Total comprehensive income
    attributable to the owner of the                               1,000,919.00                          -4,732,857.00parent companyTotal comprehensive incomeattributable minority shareholdersLegal representative :Hu YongfengPerson-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.
                                                                                                              In RMB
    Items                                       Amount in this period                  Amount in last period
    I. Income from the key business                                1,041,445.00                                908,470.00
    Less:Business cost                                               168,586.00                             168,586.00
    Business tax and surcharge                                           71,755.00                              76,269.00
    Sales expense
    Administrative expense                                        2,180,252.00                           2,688,880.00
    Financial expenses                                          -861,200.00                            -770,606.00Asset impairment lossAdd:Gains from change of forvalue (―-‖for loss)Investment gain(―-‖for loss)
    Incl: investment gains fromaffiliates
    II. Operational profit(―-‖for loss)                         -517,948.00                          -1,254,659.00
    Add:Non-business income                                                                                    2,000.00
    Less:Non- business expenses                                                                         2,406,927.00Incl:Loss from disposal ofnon-current assets
    III.Total profit(―-‖for loss)                                 -517,948.00                          -3,659,586.00
                                                            深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    Less:Income tax expenses
    IV. Net profit(―-‖for net loss)                           -517,948.00                        -3,659,586.00
    V. Earnings per share:                             --                                   --(I)Basic earnings per share(II)Diluted earnings per shareVI. Other comprehensive income
    VII. Total comprehensive income                               -517,948.00                        -3,659,586.00Legal representative :Hu YongfengPerson-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.
                                                                                                        In RMB
               Items                      Amount in this period                 Amount in last period
    I.Cash flows        from    operatingactivitiesCash received from sales of goods
                                                             6,501,169.00                         6,412,358.00or rending of servicesNet increase of customer depositsand capital kept for brothercompanyNet increase of loans from centralbankNet increase of inter-bank loansfrom other financial bodiesCash received against originalinsurance contract
    Net     cash    received          fromreinsurance businessNet increase of client deposit andinvestmentNet increase of trade financialasset disposal
    Cash     received      as    interest,
                                      深圳中冠纺织印染股份有限公司 2014 年半年度报告全文processing fee and commissionNet increase of inter-bank fundreceived
    Net increase     of   repurchasingbusinessTax returnedOther cash received from business
                                      1,117,687.00                           598,048.00operation
    Sub-total of cash inflow              7,618,856.00                          7,010,406.00Cash paid for purchasing ofmerchandise and servicesNet increase of client trade andadvanceNet increase of savings n centralbank and brother companyCash paid for original contractclaimCash paid for interest, processingfee and commissionCash paid for policy dividendCash paid to staffs or paid for
                                      1,379,093.00                          1,414,058.00staffs
    Taxes paid                            1,094,357.00                          1,058,641.00Other cash paid for business
                                      2,437,192.00                          2,588,267.00activitiesSub-total of cash outflow from
                                      4,910,642.00                          5,060,966.00business activitiesCash flow generated by business
                                      2,708,214.00                          1,949,440.00operation, net
    II.Cash flow       generated    byinvestingCash received from investmentretrievingCash received as investment gainsNet cash retrieved from disposal
    of fixed assets, intangible assets,                                         5,087,000.00and other long-term assetsNet cash received from disposal
                                          深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    of    subsidiaries       or       otheroperational unitsNet cash received from disposal
    of    subsidiaries   or   otheroperational unitsSub-total of cash inflow due to
                                                                                5,087,000.00investment activitiesCash paid for construction of
    fixed assets, intangible assets and          64,702.00                            62,063.00other long-term assetsCash paid as investmentNet increase of loan againstpledge
    Net     cash     received    fromsubsidiaries and other operationalunitsOther cash paid for investmentactivities
    Sub-total of cash outflow     due to
                                             64,702.00                            62,063.00investment activitiesNet cash flow generated by
                                            -64,702.00                          5,024,937.00investment
    III.Cash flow        generated      byfinancingCash received as investmentIncl: Cash received as investmentfrom minor shareholdersCash received as loansCash received from bond placing
    Other financing       –related    ashreceivedSub-total of cash inflow fromfinancing activities
    Cash to repay debts                       6,291,275.00                         10,000,000.00Cash paid as dividend, profit, orinterestsIncl: Dividend and profit paid bysubsidiaries to minor shareholders
                                                            深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Other cash paid for financingactivitiesSub-total of cash outflow due to
                                                             6,291,275.00                        10,000,000.00financing activitiesNet cash flow generated by
                                                            -6,291,275.00                       -10,000,000.00financingIV. Influence of exchange rate
    alternation on cash and cash                                  393,915.00                           -433,172.00equivalentsV.Net increase of cash and cash
                                                            -3,253,848.00                        -3,458,795.00equivalentsAdd: balance of cash and cash
    equivalents at the beginning of                             63,502,910.00                        52,227,262.00termVI.Balance of cash and cash
                                                            60,249,062.00                        48,768,467.00equivalents at the end of termLegal representative :Hu YongfengPerson-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.
                                                                                                        In RMB
               Items                      Amount in this period                 Amount in last period
    I.Cash flows     from      operatingactivitiesCash received from sales of goods
                                                             2,465,163.00                         2,408,470.00or rending of servicesTax returnedOther cash received from business
                                                              875,492.00                          1,009,229.00operation
    Sub-total of cash inflow                                     3,340,655.00                         3,417,699.00Cash paid for purchasing ofmerchandise and servicesCash paid to staffs or paid for
                                                              804,933.00                           990,236.00staffs
                                      深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    Taxes paid                              511,942.00                           466,148.00Other cash paid for business
                                      1,657,744.00                          1,619,943.00activitiesSub-total of cash outflow from
                                      2,974,619.00                          3,076,327.00business activitiesCash flow generated by business
                                        366,036.00                           341,372.00operation, net
    II.Cash flow       generated    byinvestingCash received from investmentretrievingCash received as investment gainsNet cash retrieved from disposal
    of fixed assets, intangible assets,                                         5,072,000.00and other long-term assetsNet cash received from disposal
    of    subsidiaries   or   otheroperational units
    Other cash receivable           forinvestment activitiesSub-total of cash inflow due to
                                                                            5,072,000.00investment activitiesCash paid for construction offixed assets, intangible assets andother long-term assetsCash paid as investment
    Net     cash     received    fromsubsidiaries and other operationalunitsOther cash paid for investmentactivities
    Sub-total of cash outflow   due toinvestment activitiesNet cash flow generated by
                                                                            5,072,000.00investment
    III.Cash flow      generated    byfinancingCash received from absorbinginvestment
                                                                  深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Cash received as loansCash received from bond placing
    Other financing       –related   ashreceivedSub-total of cash inflow fromfinancing activities
    Cash to repay debts                                                                                    10,000,000.00Cash paid as dividend, profit, orinterestsOther cash paid for financingactivitiesSub-total of cash outflow due to
                                                                                                       10,000,000.00financing activitiesNet cash flow generated by
                                                                                                      -10,000,000.00financingIV. Influence of exchange ratealternation on cash and cashequivalentsV.Net increase of cash and cash
                                                                    366,036.00                         -4,586,628.00equivalentsAdd: balance of cash and cash
    equivalents at the beginning of                                   10,557,501.00                        17,293,509.00termVI.Balance of cash and cash
                                                                  10,923,537.00                        12,706,881.00equivalents at the end of termLegal representative :Hu YongfengPerson-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
                                                                                                             In RMB
                                                                 Amount in this period
                                        Owner’s equity Attributable to the Parent Company
                                                                                      Minor Total of
           Iterm
                              Share Capital Less: Special Surplu Comm Attribu        sharehol owners’
                                                                               Other
                              Capital reserve Shares ized   s    on risk table         ders’  equity
                                                                       深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                                 s         in reserve reserve provisi profit               equity
                                                         stock           s      on
                                    169,142 39,645,0                   26,704,        -108,05 -1,112,9 -1,738,42 124,581,65I.Balance at the end of last year
                                    ,356.00     48.00                   791.00       9,131.00     92.00       0.00         2.00Add: Change of accounting
    policyCorrecting of previous errors
        Other
    II.Balance at the beginning of      169,142 39,645,0                   26,704,        -108,05 -1,112,9 -1,738,42 124,581,65
    current year                        ,356.00     48.00                   791.00       9,131.00     92.00       0.00         2.00
                                              15,764.0                               738,330. 246,825.               1,000,919.III.Changed in the current year
                                                     0                                    00         00                     00
                                                                                     738,330.
    (I) Net profit                                                                                                   738,330.00
                                                                                          00
                                              15,764.0                                          246,825.
    (II)Other misc.income                                                                                            262,589.00
                                                     0                                               00
                                              15,764.0                               738,330. 246,825.               1,000,919.Total of (I) and (II)
                                                     0                                    00         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’ equity1. Capitalizing of capitalreserves (or to capital shares)2. Capitalizing of surplusreserves (or to capital shares)3.Making up losses by
                                                                    深圳中冠纺织印染股份有限公司 2014 年半年度报告全文surplus reserves.4. Other(VI) Special reserves1. Provided this year2.Used this term(VII)Other
    IV. Balance at the end of this      169,142 39,660,8                26,704,          -107,32 -866,16 -1,738,42 125,582,57
    term                                ,356.00    12.00                791.00          0,801.00        7.00       0.00        1.00Amount in last year
                                                                                                                         In RMB
                                                                    Amount in last year
                                          Owner’s equity Attributable to the Parent Company
                                                                                                 Minor
                 Items                               Less:         Surplu Comm                           Total of
                                            Capital        Special                 Attribu      sharehol
                                    Share           Shares            s    on risk                       owners’
                                            reserve          ized                   table Other ders’
                                    Capital            in          reserve provisi                        equity
                                               s           reserve                 profit        equity
                                                     stock            s      on
                                    169,142 39,790,7                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:Retrospective adjustmentcaused by merger of entitiesunder common controlAdd: Change of accounting
       policyCorrecting of previous errors
         Other
    II.Balance at the beginning of      169,142 39,790,7                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
    \ III.Changed in the current                  -145,73                               8,214,81 -601,39 -364,906. 7,102,775.
    year                                             6.00                                     0.00      3.00         00          00
                                                                                    8,214,81               -364,906. 7,849,904.
    (I) Net profit
                                                                                          0.00                   00          00
                                              -145,73                                            -601,39              -747,129.0
    (II)Other misc.income
                                                 6.00                                               3.00                      0
                                              -145,73                               8,214,81 -601,39 -364,906. 7,102,775.Total of (I) and (II)
                                                 6.00                                     0.00      3.00         00          00(III) Investment or decreasingof capital by owners1. Capital inputted by owners
                                                            深圳中冠纺织印染股份有限公司 2014 年半年度报告全文2.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 39,645,0          26,704,           -108,05 -1,112,9 -1,738,42 124,581,65
    term                              ,356.00   48.00            791.00         9,131.00    92.00      0.00        2.00Legal representative :Hu YongfengPerson-in-charge of the accounting work:Zhang JinliangPerson-in -charge of the accounting organ:Ren Changzheng8. Statement of change in owner’s Equity of the Parent CompanyPrepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.Amount in this period
                                                                                                            In RMB
                Items                                       Amount in this period
                                                                      深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                                             Less: Specializ            Common               Total of
                                       Share        Capital                    Surplus            Attributa
                                                            Shares in    ed                risk              owners’
                                       Capital     reserves                    reserves           ble profit
                                                             stock    reserves          provision             equity
                                      169,142,35 31,606,598                    26,309,287          -95,898,90 131,159,34I.Balance at the end of last year
                                            6.00        .00                           .00                1.00       0.00
    Add:     Change     of   accounting
       policyCorrecting of previous errors
         Other
    II.Balance at the beginning of 169,142,35 31,606,598                           26,309,287          -95,898,90 131,159,34
    current year                                6.00        .00                           .00                1.00       0.00
                                                                                                   -517,948.0 -517,948.0III.Changed in the current year
                                                                                                           0          0
                                                                                                   -517,948.0 -517,948.0
    (I) Net profit
                                                                                                           0          0
    (II)Other misc.income
                                                                                                   -517,948.0 -517,948.0Subtotal of (I) and (II)
                                                                                                           0          0(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 surplus
                                                                     深圳中冠纺织印染股份有限公司 2014 年半年度报告全文reserves.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         -96,416,84 130,641,39
    term                                        6.00        .00                            .00              9.00        2.00Amount in last year
                                                                                                                 In RMB
                                                                      Amount in last year
                 Items
                                                             Less: Specializ           Common               Total of
                                       Share        Capital                   Surplus            Attributa
                                                            Shares in   ed                risk              owners’
                                       Capital     reserves                   reserves           ble profit
                                                             stock    reserve          provision             equity
                                      169,142,35 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
                                                                                                  -2,537,404. -2,537,404.III.Changed in the current year
                                                                                                          00          00
                                                                                                  -2,537,404. -2,537,404.
    (I) Net profit
                                                                                                          00          00
    (II)Other misc.income
                                                                                                  -2,537,404. -2,537,404.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 reserves
                                                            深圳中冠纺织印染股份有限公司 2014 年半年度报告全文2.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          -95,898,90 131,159,34
    term                                    6.00        .00                      .00                1.00       0.00Legal representative :Hu YongfengPerson-in-charge of the accounting work:Zhang JinliangPerson-in -charge of the accounting organ:Ren ChangzhengIII.Basic Information of the Company1. HistoryShenzhen Victor Onward Textile Industrial Co., Ltd. (hereinafter referred to as "the Company"), grew out of theXingnan Printing Factory Co., Ltd, founded in 1980, was the first wholly foreign-owned enterprise in Shenzhen.In April 1984, Xingnan Printing Factory Co., Ltd was changed into foreign joint venture, and was renamedShenzhen Victor Onward Textile Industrial Co., Ltd. . On November 19, 1991, the Company was reorganized intoa joint stock limited company and renamed Shenzhen Victor Onward Textile Industrial Co., Ltd. pursuant to theapproval of Shenzhen Municipal Government.The domestically listed RMB ordinary shares ("A shares, Stock code: 000018" ) and domestically listed foreigninvestment shares ("B shares ,stock code: 200018") issued by the Company were listed on Shenzhen StockExchange in 1992.
                                                              深圳中冠纺织印染股份有限公司 2014 年半年度报告全文By June 30, 2014, the total share capital was 169,142,356 million shares, of which circulating A-share 99,720,453shares, circulating B-share 69,421,903. of which Union Holdings Co., Ltd. (hereinafter referred to UnionHoldings ) holding limit-sale A-shares 43,141,032 shares, accounting for 25.51% of the total equity, is thecontrolling shareholder of the company, Union Development Group Co., Ltd. (hereinafter referred to UnionGroup)holding circulating A –share 5,681,089 shares, accounting for 3.36% of the total equity, Union Group holds31.32% of equity of Union Holdings and has the right to control Union Holdings, thus Union Group is the actualcontroller of the Company.
    By June 30, 2014, Victor Onward printing and dyeing (Hong Kong) Co., Ltd. (hereinafter referred to as"Hong Kong Victor Onward"), Shengzhong Industrial Co., Ltd. (hereinafter referred to as"Shengzhong") ,Shenzhen East Asia Victor onward Holding (hereinafter referred to as ―East Asia Company),Shenzhen Nanhua Printing and Dyeing (hereinafter refered to as ―Nanhua Company‖) as well as itswholly-funded subsidiary Nanhua Xingye Co., Ltd (hereinafter referred to as "Nanhua Xingye") are allsubsidiaries of the Company.Registered address: 26 Kuipeng Road, Kuiyong Town, Longgang District, ShenzhenLegal Representative: Hu Yongfeng2.Business natureThe Company engages in textile printing & Dyeing industry .3.Business scope:The production and processing (printing and dyeing) and sales of various high-grade fabrics of pure cotton, purelinen, polyester-mixed cotton, linen cotton and mixed fiber and finished garments.IV.Principal accounting policies, accounting estimates and early errors1.Basis for the preparation of financial statementsThe preparation of financial statements of the company based on continuous operation. Base on actualtransactions and events occurring, according to the ministry of finance issued ―Accounting Standards forEnterprises - Basic Standards‖ on 15th February 2006 and 38 items of specific accounting standards, applicationguidelines of accounting standards which was promulgated after, accounting standards interpretation and otherrequirements (hereafter named ―Enterprise Accounting Standard‖), General Provisions of Financial Statements,No.15 rules of the editing and reporting regarding information disclosure for companies publicly issuing securitiesby China Securities Regulatory Commission(2010 revised)has confirmed,the financial report was based on it.2. Statement on the Accounting Standard Followed by the Company
    The financial statements prepared by the Company comply with the requirements of corporate accountingstandards. They truly and completely reflect the financial situations, operating results, equity changes and cashflow, and other relevant information of the company.3.Fiscal YearThe Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as thefiscal year.4.Standard currency for bookkeepingThe Company takes RMB as the standard currency for bookkeeping.
                                                                          深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Its overseas subsidiaries choose the currency of the primary economic environment in which the subsidiaryoperates as the functional currency. However, the financial statements should be translated into RMB.5.The accounting solution of business combinations under the same and different control(1)Corporate merger under same control1. Realize all the terms and conditions of transactions in the process of enterprise acquisition step by step, and
    adopt the accounting method to conduct a package deal for the multiple transactions if the following items
    appear for the economic impact:
    2.   These deals are simultaneously entered into effect or under the consideration of mutual influence;
    3.   These transactions must be as a whole to achieve a complete business performance;
    4.   The occurrence of one deal is depended on that of other transactions;
    5.   Single transaction maybe is uneconomical, but it is economical when it is considered together with other
    transactions.Corporate merger under same control1) The Individual Financial StatementsIf the consideration of the merging enterprise is that the company makes payment in cash, transfers non-cashassets or bears its debts, and issues equity bonds, it shall, at the date of merger, regard the share of the book valueof the owner's equity of the merged party as the initial cost of the long-term equity investment. The differencebetween the initial cost of the long-term equity investment and the payment in cash, non-cash assets transferred aswell as the book value of the debts borne by the merging party shall offset against the capital reserve.All the direct costs paid by the company for the conduct of business combination, including audit fees, appraisalfees, legal services fee, etc., should be accounted into current profit and loss at the time incurred. If there is theconsolidated financial statements for the merged party, the initial cost of the long-term equity investment isdetermined based on the owner's equity of the merged party at the date of merger.2) The Consolidated Financial StatementsThe acquired assets and liabilities by the merged parties through business combination are measured at their bookvalue with the merged parties on the date of merger. If the accounting policies adopted by the merged parties areinconsistent with those of the company, the company can make adjustment in accordance with its accountingpolicies on the date of combination, and confirm them in accordance with the provisions of the AccountingStandards for Enterprises.(2). Corporate merger under different controlsWith the merger under the different control, the merger cost is the assets to pay, liabilities incurred or taken and the fair value of theissued equity securities which a buyer gains the control from the acquiree on the purchase date. In case of anyfuture events defined in merger contract whose predictable occurrence could influence the merger cost and therelated amount could be reliably calculated at merger date, such amount should also be included in merger cost.All the intermediary fees, such as audit fees, legal services fees, appraisal and consultation fees, and other relatedmanagement expenses paid by the company for the conduct of business combination should be accounted intocurrent profit and loss at the time incurred; the transaction charge of equity or debt bonds issued by the companyfor the consideration of the merging enterprise are accounted into initial recognized value of the equity or debtbonds.The company recognizes as goodwill for the difference of the combination costs more than the fair value of theidentifiable net assets obtained from the merged parties, and accounts into current profit and loss for the differenceof the combination costs less than the fair value of the identifiable net assets obtained from the merged partiesafter checked.
                                                                深圳中冠纺织印染股份有限公司 2014 年半年度报告全文If the enterprise achieves the business merger not under same control through multi-step implementation oftransactions, it shall distinguish the individual financial statements and the incorporated financial statements toconduct the related process of accounting treatment:1. In the individual financial statements, the sum of the book value of equity investment of acquiree held beforethe date of purchase and the new investment cost added at the date of acquisition shall be made as the initialinvestment cost of this investment project; If the holding acquiree’s equity before the date of purchase is involvedwith other composite income, the other related composite incomes shall be transferred into the investment incomeof current period in the disposal of the investment project (such as, the change of fair value of the salable financialasset shall be attributed to capital reserves, hereinafter the same).2. In the consolidation financial statements, the holding acquiree’s equity prior to the date of purchase shall bemeasured again with the fair value of equity at the date of acquisition, and the difference between the fair valueand the book value is attributed to the investment income of current period; If the holding acquiree’s equity priorto the date of purchase involved with other composite income, the other related composite incomes shall betransferred into the investment income of current period at the date of purchase.6,The method of drawing up the Consolidation financial statements(1) The method of drawing up the Consolidation financial statementsThe company has real control to the subsidiary and special purpose entity which are included in the scope ofConsolidation financial statements.The accounting policies & accounting periods adopted by all the subsidiaries that have been included into thescope of the consolidated financial statements should be consistent with those adopted by the company. If theaccounting policies & accounting periods adopted by the subsidiaries are different from those adopted by thecompany, the company shall make necessary adjustments according to the accounting policies & accountingperiods it adopts when preparing the consolidated financial statements.After adjusting the long-term equity investments on its subsidiaries according to the equity method, the companyshall prepare the consolidated financial statements based on the financial statements of the company & itssubsidiaries, and other related documents.The influences of the internal transactions between the company & its subsidiaries, and its subsidiaries themselveson the consolidated balance sheet, consolidated profit statement, consolidated cash flow statement &consolidated statement of changes in owner’s equity will be counteracted at the preparation of the consolidatedfinancial statements.When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds theminority shareholders’ portion of the opening balance of owners’ equity of the subsidiary, the excess amountshould be still allocated against minority interest.In the report period, If the subsidiary is added through the business combination under the same control, thebeginning balance of the consolidated balance sheet shall be adjusted. The incomes, expenses & profits of thesubsidiary incurred from the beginning of the current period to the end of the reporting period shall be includedinto the consolidated profit statement. The cash flow from the beginning of the current period to the end of thereporting period shall be included into the consolidated cash flow statement.In the report period, If the subsidiary is added through the business combination not under the same control, thebeginning balance of the consolidated balance sheet shall not be adjusted. The incomes, expenses & profits of thesubsidiary incurred from the acquisition date to the end of the reporting period shall be included into theconsolidated profit statement. The cash flow from the acquisition date to the end of the reporting period shall beincluded into the consolidated cash flow statement.In the report period, If the company disposes its subsidiary, the incomes, expenses & profits incurred from thebeginning of the subsidiary to the disposal date shall be included into the consolidated profit statement. The cashflow from the beginning of the subsidiary to the disposal date shall be included into the consolidated cash flowstatement.
                                                                 深圳中冠纺织印染股份有限公司 2014 年半年度报告全文If an enterprise loses control over a subsidiary company it originally services due to the disposal of some equityinvestment or for any other reasons, in consolidated financial statements, the remaining equity shall bere-measured as per the fair value at the date of the control lost. The difference between the sum of theconsideration received on the disposal of equities and the fair value of remaining equities, and the net assets sharecontinually calculated by the original subsidiary company since the merger date on the basis of the original stockproportion shall be accounted for as investment income for the period in which control was lost. Othercomprehensive income related to the equity investment that the subsidiary company originally owned shall beincluded in current investment income at the date of the control lost.(2)Accounting treatment when the share equity of the same subsidiary is purchased and sold, or sold
    andsurchased in successively two years.7.Recognition Standard of Cash & Cash Equivalents
    The company recognizes its cash in vault & the deposits that are ready for payment at any time as cash whenpreparing the cash flow statement.which are featured with short term (expire within 3 months since purchased),high liquidity, easy to convert to know cash, low in risk of value change, could be recognized as cash equivalents.8.Foreign Currency Transaction(1)The foreign currency translation servicesThe foreign currency transaction uses the spot rate at the time of the transaction as the exchange rate to convertthe currency into CNY for keeping account.The balances of the foreign currency monetary items shall be converted according to the spot rate on the balancesheet date. Except that the exchange balances on the foreign currency borrowings for expenses on the assetseligible for capitalization shall be dealt according to the principle of loan expense capitalization, all the otherexchange balances shall be included into the profits & losses at the current period. The foreign currencynon-monetary items measured in historical costs shall still be converted according to the spot rate at the time ofthe transaction. Their account standard money amounts shall not be changed. The foreign currency non-monetaryitems measured in fair values shall be converted according to the spot rate on the recognition date of the fairvalues. The exchange balances incurred accordingly shall be recorded into the profits & losses at the currentperiod or the additional paid-in capital.(2)The foreign currency financial statementsThe assets in the balance sheet and liabilities items, by using the spot exchange rate on the balance sheet date, allequity projects except the item of ―Undistributed Profits‖, other items were calculated by the spot exchange rate.With the income and expense items, it was determined by a systematic and rational approach, and calculated bythe approximate exchange rate of the spot exchange rate to convert on the transaction date. The convertingdifferences generated by the foreign currency financial statements, and all equity items in the balance sheet arelisted separately.On disposal of overseas operations, the corresponding difference of foreign currency translation related to theoverseas operations and listed in the owner’s equity in Balance Sheet should be moved from owners’ equity tocurrent profits and losses. On partial disposal of overseas operations, the partial proportion of difference shouldalso be converted into current profits and losses.Partial disposal of a foreign operation, is calculated portion of theforeign currency earnings disposal.9.Financial InstrumentsFinancial instruments consist of financial assets, financial liabilities and equity instruments.(1)Classification of financial toolsThe Company divides the financial assets into four categories: financial assets measured at fair value and theirvariations are recognized as current gain/loss, including trade financial assets or financial liabilities andrecognized directly as financial assets measured at fair value and their variations are recognized as currentgain/loss; Investment hold till expiration; loans and account receivable; saleable financial assets .The company
                                                                 深圳中冠纺织印染股份有限公司 2014 年半年度报告全文divides the financial liabilities into two categories: financial liabilities measured at fair value and their variationsare recognized as current gain/loss; other financial liabilities.(2) Recognition and measurement of financial tools(1) Financial assets and liabilities measured at fair value and their variations are recognized as current gain/lossThe fair value (after deducting of announced but not distributed cash dividend or due but not obtained bondinterests) is recognized as initial amount when obtained.Interests or cash dividends during the period of holding are recognized as investment gains. The fair value will beadjusted and accounted as current gain/loss.When disposed, the differences between fair value and initial amount are recognized as investment gains, and thusadjust the gain/loss of fair value.(2) Investment hold till expirationThe fair value (after deducting of due but not obtained bond interests) plus the related trade expenses isrecognized as initial amount when obtained.Interest gains will be calculated at amortizing of costs and actual interest rate (the face rate is adopted when thedifference between the actual rate and face rate is minor) during the period of holding, and accounted asinvestment gains. Actual rate is recognized when obtained, and is not changed in the predictable holding period orapplicable shorter period.When disposed, the difference between the obtained price and book value is accounted as investment gains.(3) Account receivableThe receivable debts of selling goods or providing services, and the credits of other company hold by thecompany not including the debt which has price in active market, including accounts receivable, notes receivable,prepaid accounts, other receivables, long-term receivables, etc. The contract or agreement price charging frompurchaser should be taken as the initial confirmation amount; if it has the nature of financing, it should beconfirmed according its current value.
       When retrieved or disposed of, the difference between the actual received amount and the book value isaccounted as current gain/loss.(4) Saleable financial assetsThe fair value (after deducting of announced but not distributed cash dividend or due but not obtained bondinterests) plus the related trade expenses is recognized as initial amount when obtained.Interest or cash dividend occurred during the period of holding is recognized as investment gains. Change of fairvalue is accounted as capital reserves (other capital reserves) at the end of term.When disposed, the difference between the obtained price and book value is accounted as investment gains.Meanwhile, the corresponding part of accumulated change of fair value accounted as owners’ equity is transferredinto investment gain/loss.(5) Other financial liabilitiesOther financial liabilities are recognized initially at the sum of fair value and related trade expenses. Successivemeasurement will be on the basis of amortized costs.(3). Recognition and measurement basis of financial asset transpositionWhen financial asset transposition occurred, the recognition of this particular financial asset is terminated ifalmost all risks and rewards attached to the asset have been transferred to the acceptor. If retain all the risks andrewards of ownership of financial assets, the financial assets can be confirmed.When determine whether the transfer of financial assets meet the conditions of confirmation of the above financialassets, the principle of substance being more important than form should be adopted. The transfer of financialassets can be divided into overall transfer and part transfer of financial assets. If the transfer of financial assetsmeet the conditions of terminating confirmation, the following the difference of the two amounts will be includedin the current profit and loss:(1) Book value of the financial asset to be transposed;(2) The sum of price received due to the transposition, and the accumulation of change in fair value originallyaccounted as owners’ equity (when the asset to be transposed is saleable financial asset).
      If part transfer of financial assets meet the conditions of terminating confirmation, the book value of thetransferred financial assts, the difference between the confirmed part and the unconfirmed part (in this case, the
                                                                   深圳中冠纺织印染股份有限公司 2014 年半年度报告全文service assets retained should be deemed as the part of unconfirmed financial assets), should be amortized inaccordance with their relative fair value, and the difference between the following two amount should be includedcurrent profit and loss:① Book value of the confirmed part;
    ②All fair values of financial assets and financial liabilities are recognized with reference to the price in theactive market.
    If the transfer of financial assets does not meet the conditions of terminating confirmation, the financialassets should be confirmed again, the prices received will recognized as financial liabilities.(4).The conditions to stopping the financial liabilitiesThe obligation of financial liabilities are already cancelled which should be stopped confirming the financialliability or the part of it. Our company could stop confirming the currently financial liability and begin to confirmthe newly financial liability if the loaner made an agreement that they would assume the new way of financialliability which replace the current one, and make sure the newly financial liability is totally different from the oldone in contract with our company.Stop admitting the financial liability or a part of it, and at mean time we could admit the newly financial liabilitywhich is in new insertions of contract as the newly financial liability if the current financial liability has beenrevised.Stop admitting the balance of value of financial liability and consideration (Including the roll-out of non-cashassets or financial liabilities) which could be consider as current profits and losses.Stop and continue admitting a part of value, and distribute the value of financial liability, if our companyrepurchased the part of financial liability. And the balance of value of which distributed to the part of stoppingadmitting and paid (Including the roll-out of non-cash assets or financial liabilities) which could be consider ascurrent profits and losses.(5).Recognition basis of financial assets and financial liabilitiesThe company has adopted financial assets and financial liabilities measured with the fair value to activatefinancial assets or financial liabilities of the market, and determined its fair value based on the quotation in anactive market; if there no exists financial assets or financial liabilities to activate the market, the valuationtechniques (including the price made in the market transactions which is recently conducted by each party withwilling action and acquaintance of situation, the current fair value, discounted cash flow analysis and equityoption pricing models, etc. of other financial instruments which is substantially similar with the reference) shall beused to determine its fair value; for the initial or original financial assets or the liabilities assumed, its fair valueshall be determined on the basis of the transaction price of market.(6)Providing of impairment provision on financial assets (exclude receivable accounts)On the balance sheet date, the company performs inspection on the book value of financial assets apart from thosewhich are calculated at fair value and the changes of which are taken into the current profit and loss account.Depreciation provision is required for the circumstance where objective evidences indicate that depreciationoccurs to the financial assets.Objective evidences for depreciation include (but not limited to) the following:1. the issuer or the debtor suffers serious financial difficulty;2. the debtor has breached the contract, such as failure or delay thereof in repayment of interests or the principal;3. the debtee compromises to the debtor in consideration of the economic or legal aspect;4. the debtor is very likely to be in bankruptcy or other financial reorganization;5. the issuer suffers serious financial difficulty, which results in failure of financial assets to trade in the active
    market;
                                                                  深圳中冠纺织印染股份有限公司 2014 年半年度报告全文6. observable data indicating that there is a measurable decrease in the estimated future cash flows from a group
    of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified
    with the individual financial asset in the group, including: adverse changes in the payment status of borrowers
    in the group; an increase in the unemployment which appears in the debtor’s country or region; a decrease in
    property prices for mortgages in the relevant area, or adverse changes in industry conditions that affect the
    borrowers in the group;7. any significant change with an adverse effect that has taken place in the technological, market, economic or
    legal environment in which the issuer of equity instruments operates, and indicates that the cost of
    investments in equity instruments may not be recovered; or8. the fair value of the equity instrument investment suffers serious or non-temporary drop.The special depreciation method of financial assets is as follows:(1) Depreciation Provision of Financial Assets Available for Sale:The individual identification method is adopted to evaluate the depreciation losses for the financial assets availablefor sale. Of which, the objective evidence that indicates the depreciation of equity instrument investment availablefor sale includes the fair value of the equity instrument investment suffering serious or non-temporary drop, andthe specific quantitative criteria:The company shall conduct a separate check to all equity instrument investment available for sale at the balancesheet date, if fair value of the equity instrument investment at the balance sheet date is less than its initial investmentcost beyond 50% (including 50%) or over one year of duration (including one year), the depreciation occurs; if fairvalue of the equity instrument investment at the balance sheet date is less than its initial investment cost beyond 20%(including 20%) but not up to 50%, the company shall take into account of other relevant factors, such as pricefluctuation rate, etc., to judge if there is depreciation of the equity instrument investment.When the financial assets available for sale (namely, AFS financial assets) are impaired, the company shall reverseand charge the accumulated losses due to decreases in fair value previously recognized directly in capital to profit orloss for the current period, even if the financial assets are not derecognized. The reversed accumulated losses are theasset’s initial acquisition costs after deducting amounts recovered and amortized, current fair value and impairmentlosses previously recognized in profit or loss.If, in a subsequent period, the carrying amount of AFS debt instruments investment increases and the increase canbe related objectively to an event occurring after the impairment was recognized, the previously recognizedimpairment losses are reversed. The reversal shall be recognized in profit or loss for the current period. The reversalof impairment losses of AFS equity instruments is recognized in capital reserve. But, impairment losses incurred byinvestments in an unquoted equity instrument (without a quoted price in an active market) whose fair value cannotbe reliably measured and derivatives that are linked to and must be settled by delivery of investments in equityinstruments are not reversed.(2) Depreciation Reserves of Held-to-Maturity InvestmentsIf there is objective evidence of depreciation for held-to-maturity investments, the difference between the carryingamount and the present value of estimated future cash flows is recognized as impairment loss. If there is evidencethat its value has recovered after accrued, the previously recognized impairment loss shall be reversed. Theamount of the reversal shall be recognized in profit or loss for the current period. The reversal shall not result in acarrying amount of the financial asset that exceeds what the amortized cost would have been had the impairmentnot been recognized at the date the impairment is reversed.All Recognition Standards of Depreciation of Financial Assets Available for Sale
                                                                        深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Notes: The company should clearly disclose the identified criteria of all kinds of financial assets available for saleimpairment. For investments in equity instruments, it should clearly disclose specific quantitative criteria to determine whether the fair value has serious or non-temporary decline, cost calculation method and fair value calculation method by the end and evidence of continuous decrease.All Recognition Standards of Depreciation of Financial Assets Available for Sale(7)If investment held to mature is recztegorized to sellable financial assets, please state the intention or evidenceof change incapability .10. Recognition standard and providing basis of bad debt provision on receivable accounts(1)Accounts receivable with material specific amount and specific provisioned bad debt preparation.
                                                                      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.
                                                                      Conduct the devalue test separately. Set up the bad
                                                                      debt reserve according to the shortfall of the present
                                                                      value of expected future cash flows against itsProvision method with material specific amount and
                                                                      carrying amount and record it into the profits &provision of specific bad debt preparation
                                                                      losses at the current period. Allot those assessed
                                                                      individually but no impairment for receivables into
                                                                      the bad debt reserves on a collective basis.(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)                                      3.00%                                                    3.00%
    1-2 years                                                            10.00%                                                  10.00%
    2-3 years                                                            50.00%                                                  50.00%
                                                                     深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    Over 3 years                                                    100.00%                                                    100.00%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.(3)Account receivable with non-material specific amount but specific bad debt preparation
                                           Accounts receivable with non-material specific amount and being not able to relentReason of specific bad debt preparation
                                           its risk character by provisioning bad debt preparation in accordance with portfolioprovision:
                                           Bad debt preparation will be provisioned in accordance with the difference ofProvision method of bad debt preparation
                                           present value of its future cash flow below its book value.
    11.Inventory(1)Inventory classificationInventory refers to various assets that are held for sale, the work in process or consumptions during the process ofthe production for the company in the daily of business, mainly including raw materials, packaging material, lowvalue consumables, in-process products, inventory, etc.(2)Pricing method of stock delivered
    Stock delivered is measured according to weighted average method.The inventories are initially calculated and accounted in accordance with the actual cost, and the inventory costincludes the purchase cost, processing cost and the other cost.(3)Confirmation basis of stock net realizable value and withdrawal method of inventory falling price reserves.Recognition Basis of Inventories’ Net Realizable Values and Counting & Drawing Method of Obsolete InventoryReserves:After taking stock at the end of the period,In the process of normal operation, the realizable value of goods inventories such as completed products,commodities and tradable materials etc. is recognized by its estimated selling pricing deducting estimated sellingexpenses and related taxes and expenses. The realizable net value of material inventories for processing isrecognized by the estimated selling price of the finished products deducting estimated cost and selling price andrelated taxes. The realizable net value of inventories held for execution of sales contracts or labor contracts is
                                                              深圳中冠纺织印染股份有限公司 2014 年半年度报告全文calculated on the basis of contract price. In case inventories exceed contracted amount, the exceeded part is basedon the general selling price.At end of period, depreciation reserve is made for every individual inventory item. For inventories in large varietywith low unit price, depreciation reserve is made by categories. For inventories related to products series producedand sold within the same region, having the same or similar end-use purpose, and hard to be differentiated fromother items, combined depreciation reserve is made.When factors that caused deduction of prior inventory value disappear, the deducted amount shall be resumed, andoriginally accrued depreciation provision shall be returned. The amount returned is booked into current incomestatement.(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.12.Long-term equity investment(1)Investment cost confirmation(1) For the long term equity investment from enterprise merger, the detailed accounting policy, please refer to the
    accounting method of merger of enterprises under or not under the same controller in Note II / (V). While, the
    long term equity investment acquired through liability reorganization is booked on the basis of fair value.(2)
    Long-term equity investment obtained by other ways.Long-term equity investment obtained by cash payment
    is recognized for initial investment cost according to the price practically paid.Long-term equity investmentobtained by placing of equity stocks is recognized for initial investment cost at the fair value of thestock.Long-term equity investment input by investors is recognized for initial investment cost according to theinvestment contract or agreement (less the cash dividend or profit announced but not distributed). However whenthe value in the contract or agreement is not fair value is not adopted. The non-monetary asset exchange for acommercial real income and assets or the fair value other assets can be reliably measured, the initial investmentcost should be determined according to long-term equity investment exchanged through the non-monetary assetexchange, unless there is evidence showing that for the fair value of assets is more reliable; the non-monetaryasset exchange which does not meet the above premises, the book value of the exchanged assets to and therelevant fees and taxes to be paid should be the initial investment cost of the long-term equity investment. Theinitial investment cost of the long-term equity investments obtained through debt restructuring should bedetermined in accordance with fair value.(2)Follow-up Measurements & Recognitions of Profits or LossesCost basis is adopted in accounting of long-term equity investment without joint control or major influence, andwith no quotation in an active market, thus the fair value is not able to be reliably measured. Equity basis will beadopted for the long-term equity investment with joint control or major influence.The long-term equity investmentthat has joint control or significant influences over the invested entity shall be measured by employing the equity
                                                                 深圳中冠纺织印染股份有限公司 2014 年半年度报告全文method. If the initial cost is more than the investing enterprise' attributable share of the fair value of the investedentity's identifiable net assets for the investment, the initial cost of the long-term equity investment may not beadjusted. If the initial cost is less than the investing enterprise' attributable share of the fair value of the investedentity's identifiable net assets for the investment, the difference shall be recorded into the profits & losses at thecurrent period.The treatment for the other changes of owner’s equity besides net loss and profit of the unit beinginvested: for the other changes of owners’ equity besides net profit and loss of the unit being invested, whenshareholding ratio remains unchanged, the part shared or undertaken according to share ratio, the book value oflong-term equity investment should be adjusted, and at the same time, the capital surplus (other capital surplus).(2)Recognition of Profits or Losses.Employing the cost method, besides acquiring the actual payment forinvesting or the dividends / profits which have already been declared but not distributed yet, the company shallrecognize its current investment income by enjoying the dividends / profits declared to be distributed by theinvested entity.The investment income Recognition by cost method is only limited to distribution of accumulatednet profit after the unit being invested receives investment, the part of profit and cash dividends more than theamount will be regarded as initial investment cost recovery. The loss which should be confirmed to the unit beinginvested under equity method should be treated in accordance with the following orders: First of all, deduct thebook value of long-term equity investment. Second, if the book value of long-term equity investment can not bededucted, the long-term equity value of the net value of the unit being invested should be further confirmed asinvestment loss and used to deduct the book value of long-term receivables. Finally, after the above treatment, theadditional liabilities to be undertaken according to investment contract or agreement should be confirmed asexpected liability according to the expected liability and be concluded in the current investment loss. If the unitbeing invested achieves profit in the following period, after deducting the unconfirmed liabilities, it should betreated according to the adverse order as described above, the book value of the confirmed expected liabilitiesshould be deducted, the book value of the long-term equity investment and long-term equity of net assets of theunit being invested should also be resumed, and at the same time, the investment income should be confirmed.(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.On the balance sheet date, if the long-term equity investment shows impairment due to the decreasing marketprice or the deteriorating business operation of the invested entity, the recoverable amount of the long-term equityinvestment should be determined on the basis of the net amount from the fair value of the individual long-termequity investment less the disposal expenses, or the present worth of the estimated future cash flow of thelong-term equity investment, whichever is higher. When the recoverable amount of the long-term equityinvestment is less than the book value, the book value of assets should be written down to the recoverable amount,and the amount written down is recognized as the asset impairment loss, which should be included in the currentprofits and losses; meanwhile, the corresponding asset impairment provision should be counted and drawn. As toa long-term equity investment with no significant influence, if there is no offer in the active market for it and its
                                                                深圳中冠纺织印染股份有限公司 2014 年半年度报告全文fair value cannot be reliably measured, its impairment loss shall be recognized according to the differencebetween its carrying amount & the current value recognized by discounting the future cash flow according to thecurrent market return similar to the financial asset. Besides the business reputation formed by the businesscombination, where the measurement results of the removable amounts show that the receivable amount of anyother long-term equity investment is lower than its carrying value, the difference shall be recognized as theimpairment loss.No matter whether there is any sign of possible assets impairment, the business reputation formedby the business combination shall be subject to impairment test every year.Once any loss of the long-term equityinvestment impairment is recognized, it shall not be switched back any more.13. Investment real estateThe term ―Investment real estates‖ refers to the real estates held for generating rentand/orcapital appreciation,including the right to use any land which has already been rented, the right to use any land which is held andprepared for transfer after appreciation & the right to use any building which has already been rented.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     Annual depreciation rate(%)
                                     life(Year)               value rate
    Real estate in                            20-50                      0%                          2%-5%Hongkong
    Real estate in                            20-30                     10%                         3%-4.5%ChinaIf 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.The company shall estimate the recoverable amount for any impairment, and then determine the correspondingimpairment loss if the recoverable amount less than its book value.Once the impairment loss of the real estate investment is recognized, it will not be reversed in the future.When the investment real estate is disposed of, or permanently terminates its use and no economic benefits areexpected from its disposal, terminate the confirmation of the investment real estate. Disposal income ofinvestment property for sale, transfer, disposal of scrap or being destroyed is charged to current profit or loss afterdeducting its book value and related taxes.
                                                                        深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Notes: 1. using the cost model, the disclosure of depreciation or amortization method of investment propertyand impairment provision basis;2.using the fair value model, should be disclosed in accordance with the accounting policy choices, including the identification ofinvestment property location has an active real estate market basis; the company can achieve the same or similar from real estatetransactions, real estate market prices and other relevant market information to the fair value of investment property were estimatedbased; also shows the key assumptions and major uncertainties when the fair value of investment property estimation involved.14.Fixed assets(1)Confirmation conditions of fixed assetsFixed assets refer to physical assets owned for purpose of production, service providing, leasing or management,and operation with service life of more than one year. Fixed assets are recognized when all of the followingconditions are satisfied:Financial benefits attached to the fixed asset is possibly inflowing to the Company;(2)The cost of the fixed asset can be reliable measured.(2)Cognizance evidence and pricing method of financial leasing fixed assetsThe fixed assets acquired by the company in line with the following one or several criteria shall be recognized asthe fixed assets acquired under finance leases: (1) at the expiration of the lease, the ownership of the leased assetsshall be transferred to the company. (2) the company has the option to purchase the leased assets, the purchaseprice is expected be far lower than the fair value of the leased assets under the implementation of option right, sothat it can be reasonably determined that the company shall exercise the option on the acquisition date. (3) thelease term is the majority for the leased assets even if the ownership no transferred. (4) the present value of theminimum lease payments of the company almost is equal to the fair value of the leased assets on the acquisitiondate. (5) For the special nature of the leased assets, only the company can use if no major modification made. Forthe fixed assets acquired under finance leases, the company takes less of the fair value of the leased asset on theacquisition date and the present value of the minimum lease payments as recorded value. Also, the minimum leasepayments are accounted as the recorded value for the long-term payables, and the difference are as theunconfirmed financing fees. The initial direct expenses, such as commission charge, attorney fees, travel expensesand stamp duty attributable to the lease item occurred in the process of the lease negotiation and the signature oflease contract, shall be recorded into the leased assets value. The unrecognized financing charges in each periodduring the lease term are amortized by effective interest method. The company shall adopt the depreciation policyin line with its own fixed assets to count and draw the depreciation of fixed assets acquired under finance leases.If the ownership of lease assets acquired at the expiration of lease can be reasonably confirmed, the depreciationwill be recognized in the use life of lease assets. If can’t be confirmed, the shorter period between the lease termand the use life of lease assets will be recognized as the depreciation.(3)Fixed assets depreciation methodExcept for the fixed assets that continually used after the depreciation counted and drawn fully, the depreciation offixed assets is made by average year method. Rate is based on category, expected years of use and expected netresidual ratio.For the fixed assets acquired under finance leases, if the ownership of lease assets acquired at the expiration oflease will be reasonably confirmed, the depreciation will be recognized in the remaining use life of lease assets. Ifcan’t be confirmed, the shorter period between the lease term and the remaining use life of lease assets will be
                                                                   深圳中冠纺织印染股份有限公司 2014 年半年度报告全文recognized as the depreciation.
    For the fixed assets formed by using the special reserve expenditure, the special reserve is offset against thecost of fixed assets and the same amount of accumulated depreciation is recognized. Also, the depreciation for thefixed assets are no longer counted and drawn in the future period.The company shall confirm the useful life and estimated residual value rate for the fixed assets according to thenature and the use status of the fixed assets. At the end of the year, the service life, estimated residual value anddepreciation method for the fixed assets are reviewed, and the adjustment will be accordingly if there is differencewith the previous estimated count.
       Classified depreciation years and depreciation rates are as follows:
    Type                                     Evpected useful    Estinated residual value rate     Annual depreciation rate(%)
                                             life(Year)
    House and building              20-50                        0%-10%                         2%-5%
    Machinery and equipment         5-14                                              10.00% 6%-18%
    Electric Equipment              5                                                 10.00% 18%
    Transportation equipment        4-5                                               10.00% 18%-22.5%(4). Test Method for Fixed Asset Impairment and Counting & Drawing Method for Fixed Asset ImpairmentReservesThe company shall, at the end of each period, make a judgment on whether there is any sign of possible fixedassets impairment.Where any evidence shows that there is possible fixed assets impairment, the recoverable amount of the fixedassets shall be estimated. The recoverable amount shall be determined in light of the higher one of the net amountof the fair value of the fixed assets minus the disposal expenses & the current value of the expected future cashflow of the fixed assets.Where a fixed asset's recoverable amount is lower than its carrying value, the carrying value of the fixed assetshall be recorded down to the recoverable amount, and the reduced amount shall be recognized as the loss of thefixed asset impairment and be recorded into the profits & losses at the current period. Simultaneously, the fixedasset impairment reserve shall be made accordingly.After the loss of the fixed asset impairment has been recognized, the depreciation expense of the impaired fixedasset shall be adjusted accordingly in the future period so as to amortize the post-adjustment carrying value of thefixed asset systematically (deducting the expected net salvage value) within the residual service life of the fixedasset.When there are signs showing that a fixed asset will devaluate, the enterprise estimates its collectable amountbased on the individual fixed asset. If it is difficult to make estimation of the collectable amount for the individualfixed asset, the enterprise will recognize its collectable amount on the basis of the asset group that the fixed assetbelongs to.
    15.. Projects under construction(1)Categories of projects under constructionThe company shall measure the self-constructed constructions in progress at the actual cost, which comprises
                                                                深圳中冠纺织印染股份有限公司 2014 年半年度报告全文those expenditures necessarily incurred for bringing the asset to working condition for its intended use, includingmaterials costs, labor costs, relevant taxes paid, capitalized loans, indirect expense for apportion, etc.. Theconstructions in progress of the company should be accounted by the project classification.(2)Standard and timing for transferring of projects under construction to fixed assetsAll the expenditures that bring the construction in process to the expected condition for use shall be the creditvalue of the fixed asset. If the fixed asset construction in process has already reached the expected condition foruse, but hasn’t been made the final account; it shall be carried forward to a fixed asset according to its estimatedvalue based on the budget, cost or actual cost of the construction starting from the date when it reaches theexpected condition for use, and the fixed asset shall be depreciated according to the company’s depreciationpolicy for fixed assets. After the final account has been made, the original provisional estimated value shall beadjusted according to the actual cost, but the depreciation which has originally been counted & drawn shall not beadjusted.(3) Test Method for Construction-in-Process Impairment and Counting & Drawing MethodThe company shall, at the end of each period, make a judgment on whether there is any sign of possibleconstructions-in-process impairment.Where any evidence shows that there is possible constructions-in-process impairment, the recoverable amount ofthe constructions-in-process shall be estimated. The recoverable amount shall be determined in light of the higherone of the net amount of the fair value of the constructions-in-process minus the disposal expenses & the currentvalue of the expected future cash flow of the constructions-in-process.Where a construction-in-process's recoverable amount is lower than its carrying value, the carrying value of theconstruction-in-process shall be recorded down to the recoverable amount, and the reduced amount shall berecognized as the loss of the construction-in-process impairment and be recorded into the profits & losses at thecurrent period. Simultaneously, the construction-in-process impairment reserve shall be made accordingly.Once any loss of the construction-in-process impairment is recognized, it shall not be switched back in the futureaccounting periods.When there are signs showing that constructions in progress will devaluate, the enterprise estimates its collectableamount based on the individual construction in progress. If it is difficult to make estimation of the collectableamount for the individual construction in progress, the enterprise will recognize its collectable amount on thebasis of the asset group that the construction in progress belongs to.16.Borrowing expenses1. Recognition principles for capitalizing of loan expensesBorrowing expenses occurred to the Company that can be accounted as purchasing or production of assetsatisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset. Other borrowingexpenses are recognized as expenses according to the occurred amount, and accounted into gain/loss of currentterm.
    The assets meeting capital conditions refer to the fixed assets, investment real estates and inventories whichare constructed or produced in a long time to reach the predicted use or sale state.
    When a loan expense satisfies all of the following conditions, it is capitalized:
                                                                 深圳中冠纺织印染股份有限公司 2014 年半年度报告全文1. Expenditures on assets have taken place, asset expenditures include the assets used to construct or produce theassets which meet the capitalization conditions, and expend by cash or transferring non-cash assets or bearinginterest debt;2. Loan costs have taken place;3. The construction or production activities to make assets to reach the intended use or sale of state have begun.2. Duration of capitalization of Loan costsThe capitalization period refers to the period from starting capitalization of loan costs to the stop of capitalization,the period of the break of capitalization of Loan costs is not included.When the construction or production meets the intended use or sale of state of capitalization conditions, the Loancosts should stop capitalization.When the construction or production meets the conditions of capitalization and can be used individually, thecapitalization of the loan costs of the assets should be stopped.Where each part of a asset under acquisition and construction or production is completed separately and is readyfor use or sale during the continuing construction of other parts, but it can not be used or sold until the asset isentirely completed, the capitalization of the borrowing costs shall be ceased when the asset is completed entirely..3 Capitalization Suspension PeriodWhere the acquisition and construction or production of a qualified asset is interrupted abnormally and theinterruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. Ifthe interruption is a necessary step for making the qualified asset under acquisition and construction or productionready for the intended use or sale, the capitalization of the borrowing costs shall continue. The borrowing costsincurred during such period shall be recorded into the profits & losses at the current period, till the acquisition andconstruction or production of the asset restarts.
    4. Calculation of the amount of capitalization of Loan costsInterest expense due to specialized Loan and its auxiliary expenses shall be capitalized before the asset whichsatisfies the capitalizing conditions reaches its useable or saleable status.
    Interest amount of common Loan to be capitalized equals to accumulated asset expense less weightedaverage of specialized loan part of asset expense multiplies capitalizing rate of common Loan occupied.Capitalizing rate is determined according to weighted average interest of common Loan.
    If the Loan has discount or premium, the discount or premium amount should be determined according toactual interests in each accounting period. The interest amount should be adjusted in each period.17.Intangible assets
    1. The valuation methods of intangible assets
    (1)The initial measurement is conducted according to the actual cost when the intangible assets are acquired
    The cost of the purchased intangible assets includes its buying price, relevant tax and the othe expenses thatare directly attributed to this assets meeting its predetermined objective and other expenses that occur. The buyingprice of intangible assets is over the deferred payment under normal credit conditions, which has the nature offinancing materially, the cost of intangible assets is determined on the basis of the present value of its buyingprice.
    We acquire the mortgaged intangible assets from debtors through debt restructuring and determine the entryvalue on the basis of the fair value of the intangible assets,we have the balance between the book value of debtrestructuring and the fair value of intangible assets used for mortgage charged to the current profit and loss.
                                                                      深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    The entry value of the non-monetary assets exchanged into by the non-monetary assets are determined on thebasis of the fair value of the assets exchanged out if the exchange of non-monetary assets has commercial natureand the assets exchanged into or out can be reliably measured, unless there is authentic evidence indicating thatthe fair value of assets exchanged into are more reliable; if the non-monetary assets that cannot meet the aboveprerequisite use the book value of the assets exchanged out and relevant taxes payable as the cost of thenon-monetary assets, the profit and loss is not confirmed.
    The entry value of the intangible assets acquired by the absorption merger under the control of one companyis determined by the book value of the merged party;the entry value of the intangible assets acquired by theabsorption merger that is not under the control of one company is determined by the fair value.
    The cost of the intangible assets developed internally includes the materials consumed in developing theassets, cost of service, registration fees, other patent used in developing, amortization of concession and interestcharges meeting the capitalization conditions and othe direct costs that occur before the intangible assetsmeeting the predetermined objective.
      (2)Subsequent measurement
      The Company analyses and makes judgment of its serviceable life when acquiring the intangible assets.
    The intangible assets that have limited serviceable life are amortized by the straight-line method during theperiod when the assets can bring about economic interests;The intangible assets are deemed as uncertainserviceable life and are not amortized if it is impossible to expect the period when the assets could bring abouteconomic interests.2.Estimation of service life of intangible assets with limited service lifeThe land use right shall be amortized on average according to the year limit of transfer from the date oftransferring; proprietary technology, non-proprietary technology and other intangible assets shall be amortized onaverage by installment in accordance with the shortest one among the three including estimated durable years,beneficial years specified in contract and valid years stipulated by law. The amortization amount is accounted foras the related asset costs and current profit and loss according to the beneficiaries.At the end of each period, the review is made for service life and amortization method of the intangible assets which have limitedservice life.After review, there is no difference for the service life and amortization method of intangible assets at the end ofthis period.
                Item               Amortisation periods                                     Basis3.The judgment basis of the intangible assets with indefinite lifeAt the end of each period, the review is made for service life of the intangible assets which have unrecognizedservice life.After review, if there is evidence indicating the service life of intangible assets is finite, its service life should beestimated.4.Provision for impairment of investment assets
    The intangible assets that have certain serviceable life are conducted at the ending with the test ofdepreciation of value if the assets indicate obviously that those are depreciating
    For conducting a test of depreciation of value of the intangible assets, it needs to estimate the recoverableamount of the assets. The recoverable amount is determined by the higher between the net amount obtainedthrough the fair value of intangible assets minus settlement changes and the present value of the future cash flow
                                                                          深圳中冠纺织印染股份有限公司 2014 年半年度报告全文expected by the intangible assets.
    When the recoverable amount of intangible assets is below their book value, the book value of intangibleassets is written down to the recoverable amount and the amount written down is confirmed as the loss ofdepreciation of value of intangible assets and is charged to the current profit and loss, while the correspondingprovision for the depreciation of value of intangible assets is made.
    The depletion of the depreciation of value of intangible assets or the amortization charge in the future periodwill be adjusted accordingly after confirmation of the loss of the depreciation of value of intangible assets so thatit can systematically allocate the book value of intangible assets adjusted in the residual serviceable life ofintangible assets(deduction of anticipated net value).
    Upon confirmation of the loss of the depreciation of value of intangible assets, the loss will not be reversed inthe subsequent accounting period any longer.When there are signs showing one intangible asset will devaluate, the enterprise estimates its collectable amountbased on the individual intangible asset. If it is difficult to make estimation of the collectable amount for theindividual intangible asset, the enterprise will recognize its collectable amount on the basis of the asset group thatthe intangible asset belongs to.18.Long-term amortizable expensesLong-term deferred charge will be averagely amortized in the benefited period.19..Predicted liabilities(1)Recognition of Predicted liabilitiesThe liabilities related to contingencies and meeting the following conditions are reflected as estimated liabilities:The liabilities that are present liabilities assumed by the company;The fulfillment of the liabilities may cause outflow of economic interests from the company;The amount of the liabilities can be reliably measured.(2)Accounting of Predicted liabilities
    Predicted liabilities shall be conducted initial measurement according to the best estimates of related existing liabilities,When the company recognizes the optimum estimation, it shall be in overall consideration of risks, uncertaintyand time value of currency and other factors related to contingent matters. When the influence of time value ofmoney is significant, the optimum estimates shall be determined by discounting relevant future cash outflowThe optimum estimates are conducted as follows:If there is a continuous range (or area) for the necessary expenses and the same result possibility within the range,the optimum estimate is recognized according to the middle value, namely the average of upper limit and lowerlimit of amount within the range.If there no exits a continuous range (or area) for the necessary expenses or the different result possibility withinthe range even if there is a continuous range, and if there are contingent matters related to individual item, theoptimum estimate is recognized according to the amount that has most possibility to occur. If there are contingentmatters involving multiple items, the optimum estimate is counted and confirmed as per all the possible resultsand associated probabilities.20.Revenues
                                                                 深圳中冠纺织印染股份有限公司 2014 年半年度报告全文(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 benefits related to the transactions are likely to flow into the enterprise, if the revenue amount canbe reliably measured, the revenue amount of transferring assets use right can be recognized as following:(1) the interest income amount will be measured according to time and actual interest rates of the currency funds
    used by others.(2) the income amount of usage charges will be measured according to the charge time and method determined in
    the relevant contract or agreement.21.Governmental subsidy(1)CategoriesGovernment Grant refers to monetary or non-monetary assets acquired without consideration from government,except for the capital invested in by the government as business owner. According to relevant grant objectsprescribed in the government documents, the government grants are classified as the government grants related toassets and the income-related government grants. The government grants related to assets refer to the grants oflong-term assets acquired by the company, used for purchase and construction or formed by other methods, andthe income-related government grants refer to all the government grants except for those pertinent to assets.(2) Accounting Policy1. Recognition of Government GrantIf the government grant is the monetary asset, it shall be measured in the light of the received or receivableamount. If the government grant is the no-monetary asset, it shall be measured at its fair value. If its fair valuecannot be obtained in a reliable way, it shall be measured at its nominal amount (RMB 1). The government grantsmeasured at their nominal amounts shall e directly included in the current profits and losses.2. Accounting MethodThe government grants pertinent to assets shall be recognized as deferred income, and it will be accounted to as thenon-operating income amortized by installment according to the service life of assets constructed or purchased.If it is necessary to refund any government grant which has been recognized, and there is the deferred incomeconcerned, the book balance of the deferred income shall be offset against, but the excessive part shall be includedin the current profits and losses. If there is no deferred income concerned to the government grant, it shall be directlyincluded in the current profits and losses.
                                                               深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    22. Deferred income tax assets/Deferred income tax liability1. References for confirmation of deferred income tax assetsThe company is likely to determine the deferred income tax assets produced from deductible temporarydifferences with the limit of offsetting the taxable income of temporary difference.2.The confirmation basis of deferred income tax liabilitiesThe Company confirms the temporary differences of the taxable that is not paid in the current and prior periods asthe deferred income tax liabilities. However, the goodwill, the transactions formed from non-business merger andthose will affect either accounting profit or the temporary differences of the taxable income when the transactionsoccur are not included in the deferred income tax liabilities.23.Operational leasing and Financing leasing(1)Accounting of operational leasing(1) The leasing fees paid for the leased assets by the company shall be recorded as the current expense according to
    the straight-line method in the whole lease term not excluding the rent free period. The initially direct expense
    related to the lease transactions paid by the company shall be recognized as the current expense.When the assets lessor has assumed the lease-related expenses which should be borne by the company, the companyshall deduct these expenses from the total amount of rent, amortize in the lease term according to the rents afterdeducted and record as the current expenses.(2) The leasing fees received for the leased assets by the company shall be recognized as the lease income
    according to the straight-line method in the whole lease term not excluding the rent free period. The initially
    direct expense related to the lease transactions paid by the company shall be recognized as the current expense.
    For a large of amount, it will be capitalized and recorded as the current revenue based on the same confirmation
    of lease income during the whole lease period.When the company has assumed the lease-related expenses which should be borne by the lessee, the company shalldeduct these expenses from the total amount of rent and amortize in the lease term according to the rents afterdeducted.(2) Accounting Method for Financing Leases(1) The assets acquired under financing leases: the lower value between the fair value of leased assets and the
    present value of the minimum lease payments is recognized as the recorded value, the minimum lease
    payments are recognized as the recorded value of long-term payables, and the difference is recognized as
    unrecognized finance expense at the inception of the lease.The company shall adopt the effective interest method to amortize and record as the financial costs during theassets lease term.(2)Finance leased assets: the company inception of the lease, the finance lease receivables, the differencebetween the present value and the residual value of its unsecured recognized as unrealized financing incomerecognized in the respective period of future lease rental income received, initial direct costs related to thetransaction with the rental companies, and included in the initial measurement of the finance lease receivableand reduce the amount of revenue recognized over the lease term.
                                                                  深圳中冠纺织印染股份有限公司 2014 年半年度报告全文24.Change of main accounting policies and estimationsIs there any material change of accounting policies occurred in the year□ Yes √ No(1)Change of accounting policiesIs there any change in accounting policies in the report period□ Yes √ No(2)Change of accounting estimationsIs there any change in accounting estimations in the report period□ Yes √ No.25.Correction of accounting errors in previous periodIs there any accounting error with previous period found in the report period□ Yes √ No(1)Change of accounting policiesIs there any change in accounting policies in the report period□ Yes √ No(2)Change of accounting estimationsIs there any change in accounting estimations in the report period□ Yes √ No.V.Taxation1.Main categories and rates of taxes
                     Taxes                           Tax references                     Applicable tax rates
    Business tax                               Business income                       5%Urban Construction Tax and Educational
                                       Turnover tax                              7%Surtax
          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.
                                                                                    深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
        1.Enterprise income taxThe interest rate of corporate income tax of the company and subsidiaries in China mainland is 25%, the interestrate of the income from Hong Kong of the subsidiaries in Hong Kong is 16.5%.
    2. VAT.The output tax ratio of domestic sales revenue and processing income of printing and dyeing products for thecompany and its subsidiaries established in Mainland China is 17%, and the export sales is subject to the―exemption, compensation and refund‖ methods. The company’s input tax for purchasing raw materials offsetsthe output tax with ratio of 17%. Of which, the input tax paid for export products can be applied for refunds. Thecompany’s VAT payable is the balance after offset between current period’s input and output taxes.The subsidiaries of the company in Hong Kong do not need to pay the VAT.3. Business taxBusiness tax applied to revenues of the company and South China Dyeing and Printing Co., Ltd. from the housingrental, rate being 5%. It’s unnecessary for the subsidiary in Hong Kong to pay the business tax.(IV) Urban Construction Tax and Educational SurtaxThe company’s urban construction tax and education surtax are based on payable VAT and business tax, tax ratebeing 7% and 3%. Since January 1, 2011, 2% of VAT and business tax actually paid by taxpayer are as the localeducation surtax. It’s unnecessary for the subsidiary in Hong Kong to pay the urban construction tax and theeducation surtax.(V) Property TaxThe tax of property with own use for the company and its subsidiaries established in Mainland China is based on70% of original value of the property, tax rate being 1.2%, and the tax of leased property is based on the rentalincome, tax rate being 12%. It’s unnecessary for the subsidiary in Hong Kong to pay the property tax.
    VI. Enterprise consolidation and combined financial statements
        1. Subsidiary(1)Subsidiary obtained through establishment or investment
                                                                                                                                        In RMB
                                                                                                                                        After
                                                                                                                                        wrote
                                                                                                                            Amount      down
                                                                             Other
                                                                                                                            used to current
                                                                            projects
                                                                                                                             write     period
                                                                            balance
                                                                  Actual                        Proporti Whether Interest    down      loss of
    Full                                                                      essential Holding
                        Registra             Register             capital                        on of   consolid   of        lost     minority
    name of Subsidia                   Busines              Busines             ly from proporti
                          tion                 ed                 amounts                       voting ation of minority included sharehol
    subsidia ry type                      s                 s scope               net        on
                         place               capital                of                          rights(% report sharehol       in        ders
    ry                                                                       investm      (%)
                                                                  the end                          )      form      der     minority    over
                                                                             ent to
                                                                                                                            sharehol equity
                                                                            subsidia
                                                                                                                              der      beginni
                                                                               ry
                                                                                                                            interest ng share
                                                                                                                                          of
                                                                                                                                       minority
                                                                          深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                                                                                                      sharehol
                                                                                                                      ders in
                                                                                                                        the
                                                                                                                      subsidia
                                                                                                                      ry from
                                                                                                                        the
                                                                                                                       parent
                                                                                                                      compan
                                                                                                                        y’s
                                                                                                                      share ,B
                                                                                                                       alance
                                                                                                                         of
                                                                                                                      Owner's
                                                                                                                       equity
                                           Purchase
                                           of    raw
                                           materials,
                                           marketinHong
                                   2,400,0 g        of
    Kong      Limited                          printed     2,400,0
                    Hong           02                                           100.00   100.00
    Victor    Compan           Trade           and dyed        02            0.00                     Yes   0.00   0.00       0.00
                    Kong           (HKD                                            %        %
    Onward y                                   woven       (HKD
                                   )      fabrics,Co.Ltd
                                           investme
                                           nt     and
                                           holding
                                           business
                                            Sales         of
    Shenzho                            1,000,0 Corduroy 1,000,0
          Limited
    ng                  Hong   Trade   00       ,         dyed         00           100.00   100.00
          Compan                                                         0.00                     Yes   0.00   0.00       0.00
    Compan              Kong           (HKD cloth and (HKD                            %        %
          y
    y                                  )       printed                )
                                            cloth
                                                Producti
                                                on and
                                                               16,874,
                                   85,494, sales of
    Nanhua Limited                                                 255(HK
                    Shenzhe Product 700         printed
    Compan Compan                                                  D)+4,24   0.00 69.44% 69.44% Yes         0.00   0.00       0.00
                    n        ion   (HKD cloth
    y         y                                                    0,100(R
                                   )           and
                                                                  MB)
                                                dyed
                                                cloth
                                                Sales of
    Xinye     Limited                  10,000                       10,000
                    Hong                        printed                         100.00   100.00
    Compan Compan              Trade   (HKD                       (HKD     0.00                     Yes   0.00   0.00       0.00
                    Kong                        cloth                               %        %
    y         y                        )                              )
                                                and
                                                                      深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                               dyed
                                               cloth
                                               Textilet,
                                               Printing
                                               and
                                               dyeing
                                               industry
    Shenzh                                         and
          Limited
    en East             Shenzhe           3,000,0 Raw          1,530,0                              -1,738,4
          Compan              Trade                                  0.00 51.00% 51.00% Yes                 0.00     0.00
    Asia                n                 00       material     00.00                                  20.00
          y
    Co                                             s ,Machi
                                               nery
                                               equipme
                                               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 December 31,2013 the shareholding structure as follows:
    Name of investor                           Year-beginning       Proportion %     Year-end amount           Proportion%
                                              amount
    The Compoany                                   46,868,194.54         54.82%               46,868,194.54            54.82%
    Shenye Union            (Hongkong)             26,127,180.32         30.56%               26,127,180.32            30.56%Co.,Ltd.
    The Company                                    12,499,325.14         14.62%               12,499,325.14            14.62%
    Hong Kong Victor Onward                        85,494,700.00         100.00%              85,494,700.00            100.00%Company4.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. Explanation to changes in scope of consolidationNotesN/A□ Applicable √ not applicable
                                                                       深圳中冠纺织印染股份有限公司 2014 年半年度报告全文3.Exchange rate of main accounts of overseas businessesExcept the company, its subsidiaries Nanhua Company. and Shenzhen East and Asia Company. choose RMB as
    the functional currency, other subsidiaries choose HK dollar. However, the financial statements should be
    translated into RMB. For the translation method of the financial statements for foreign currency, please refer to
    the Note II.9, The spot exchange rate of HKD to RMB WAS 0.78623 at year beginning , and the spot exchange
    rate at year endwas0.79375 the approximate exchange rate of the sot exchange rate uses the current average
    exchange rate 0.78999.
         VII. Notes to the major items of consolidated financial statement
        1.Monetary Capital
                                                                                                                             In RMB
                                             Year-end balance                                Year-beginning balance
            Items                               Exchange                                           Exchange
                             Foreign currency                    RMB            Foreign currency                      RMB
                                                  rate                                               rate
    Cash                                --            --              58,423.00           --             --                 41,613.00
    RMB                                --            --              49,188.00           --             --                 37,065.00
    HKD                                11,634.00 0.79375               9,234.00           5,785.00 0.78623                   4,548.00
    Bank deposit                         --            --           84,519,939.00          --             --              62,791,183.00
    RMB                                --            --           43,299,231.00          --             --              22,172,845.00
    HKD                          50,581,558.00 0.79375            40,149,112.00      50,311,621.00 0.78623              39,556,478.00
    USD                              174,164.00 6.1528              1,071,596.00        174,164.00 6.0969                 1,061,860.00
    Other monetary capital              --            --            5,670,700.00          --             --                670,114.00
    RMB                                 --            --            5,670,700.00          --             --                670,114.00
    Total                               --            --           90,249,062.00          --             --              63,502,910.00Notes of Monetary fund has not these conditions such as usage limitation for mortgage, pledge or frozen fund,stored overseas, with potential recovery risk.RMB 30 million for the deposit of RMB deposits in bank deposits;2.Bill receivable(1)Classification bill receivable
                                                                                                                             In RMB
                    Classification                              Year-end balance                    Year-beginning balance
    Bank acceptance                                                                                                       1,500,000.00
    Total                                                                                                                 1,500,000.00
                                                                                 深圳中冠纺织印染股份有限公司 2014 年半年度报告全文3. Interest receivable(1)Interest receivable
                                                                                                                                       In RMB
            Items               Beginning of term           Increased this term           Decreased this term            End of term
    Fixed deposit interest                       79,340.00                                                 79,340.00
            Total                            79,340.00                                                 79,340.004. Account receivable
        (1).Classification account receivables.
                                                                                                                                       In RMB
                                             Amount in year-end                                        Amount in year- begin
                                   Book Balance             Bad debt provision                Book Balance           Bad debt provision
         Classification
                                Amount       Proportion(    Amount          Proportion( Amount Proportion(          Amount        Proportion(%
                                                 %)                             %)                       %)                            )Receivables with majorindividual amount and baddebt provision provided
    individually receivables       3,960,436.0                 3,960,436.0                    3,960,436
                                                31.46%                        100.00%                    31.46% 3,960,436.00          100.00%
    with major individual                    0                              0                        .00amount and bad debtprovision providedindividuallyReceivables provided bad debt provision in groupsAccount receivable with
    minor individual amount        8,626,416.0                 8,626,416.0                    8,626,416
                                                68.54%                        100.00%                    68.54% 8,626,416.00          100.00%
    but bad debt provision is                0                              0                        .00provided
                               12,586,852.                 12,586,852.                    12,586,85                12,586,852.0
    Total                                            --                             --                       --                            --
                                       00                           00                         2.00                          0Category explanation of accounts receivable:Particulars about the receivable accounts due from shareholders with 5% (5%)or over of the Company’s sharesReceivable accounts with large amount individually and bad debt provisions were provided√ Applicable □ not applicable
                                                                                                                                       In RMB
                 Description                      Book balance              Bad debt provision          Rate(%)           Reason to provide
    Hong Kong Victor Onward Co., Ltd.                        1,851,841.00                1,851,841.00               100.00% Aging long
                                                                  深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    Carnival Index International Ltd.              1,098,549.00        1,098,549.00                100.00% Aging long
    TAI YANG ENTERPRISE CO.,Ltd.                   1,010,046.00        1,010,046.00                100.00% Aging long
    Total                                          3,960,436.00        3,960,436.00           --                   --Account reveivable on which bad debt proisions are provided on age basis in the group□Applicable √Not applicableReceivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio□Applicable √Not applicableReceivable accounts on which had debt provisions are provided by other ways in the portfolio□Applicable √Not applicableReceivable accounts with minor amount but on which had debt provisions are provided individually at end ofperiod√Applicable □Not applicable
                                                                                                                    In RMB
    Description Of other
                                Book balance        Amount of bad debt            Rate                     Reason
        receivablesVEGA CARMENT CO.
                                       768,189.00             768,189.00                 100.00% Aging longLtd
    Fly Dragon International               573,536.00             573,536.00                 100.00% Aging long
    Grateful Textiles Co.,Ltd              566,661.00             566,661.00                 100.00% Aging longShenzhen Fangzhou
                                       468,502.00             468,502.00                 100.00% Aging longTextiles Co., Ltd.
    World Fabrica (Int'l) Ltd              465,126.00             465,126.00                 100.00% Aging longEzhou Xiangya Clothing
                                       368,943.00             368,943.00                 100.00% Aging longCo., Ltd.Tak Shing Buying Office
                                       333,502.00             333,502.00                 100.00% Aging longLedShenye Union (HK)
                                       299,354.00             299,354.00                 100.00% Aging longCo.., Ltd.
    Panther Fabric Ltd.                    295,088.00             295,088.00                 100.00% Aging longChangshu Zhongjiang
    Clothing Import &                      283,539.00             283,539.00                 100.00% Aging longExport Co., Ltd.
    Starline Textile CO.Ltd.               282,234.00             282,234.00                 100.00% Aging longNissho Iwai HK Corp
                                       215,229.00             215,229.00                 100.00% Aging longLtd.
    Unimix Ltd.                            192,891.00             192,891.00                 100.00% Aging long
    Tai Hing Linings Co Ltd                191,295.00             191,295.00                 100.00% Aging long
                                            深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Human Changpuan
                            185,981.00   185,981.00            100.00% Aging longGarmentNingbo Youngor Fuchun
                            181,490.00   181,490.00            100.00% Aging longUniforms Co., Ltd.Win favour development
                            146,600.00   146,600.00            100.00% Aging longltd
    Speedy Textiles Co          146,502.00   146,502.00            100.00% Aging long
    Lin Feng Textile Co.        135,686.00   135,686.00            100.00% Aging long
    Jicheng Cotton Co., Ltd.    131,954.00   131,954.00            100.00% Aging longMillionaire(HK)Weaving
                            124,249.00   124,249.00            100.00% Aging longLtd.
    Leader Day Ltd.             121,930.00   121,930.00            100.00% Aging long
    Tex Mate Fabrics (HK)       110,024.00   110,024.00            100.00% Aging long
    New Design Textiles Ltd.    109,178.00   109,178.00            100.00% Aging longDeep Success Industrial
                            102,606.00   102,606.00            100.00% Aging longLtd
    Wynvaye Industrial Co       101,030.00   101,030.00            100.00% Aging long
    ACTSUNLTD.                   89,613.00    89,613.00            100.00% Aging long
    Tamurakoma Co Ltd.           77,828.00    77,828.00            100.00% Aging long
    International Textiles Co    65,461.00    65,461.00            100.00% Aging longShenzhen Hongtian
                             59,380.00    59,380.00            100.00% Aging longCloth Trade Co., Ltd.
    Ho Cheong Textiles Ltd       54,607.00    54,607.00            100.00% Aging long
    Origin Textiles Co Ltd.      54,156.00    54,156.00            100.00% Aging longWing Fook Piecegoods
                             50,389.00    50,389.00            100.00% Aging longCo.,LtdWing Shum Piecesgoods
                             49,905.00    49,905.00            100.00% Aging longCo Ltd.Gold Eagle Textiles
                             47,588.00    47,588.00            100.00% Aging longLimitedTangshan Lifeng
                             45,761.00    45,761.00            100.00% Aging longGarment Co., Ltd.
    Charman Trading Co           43,852.00    43,852.00            100.00% Aging long
    Atex Trading Co              43,847.00    43,847.00            100.00% Aging longGloden Glory Textiles
                             40,322.00    40,322.00            100.00% Aging longLtd
    Yu Fat Piecegoods            39,603.00    39,603.00            100.00% Aging long
                                                                            深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Co.,Ltd
    Fuji Industrial Co                           39,152.00                    39,152.00                100.00% Aging long
    Other                                       923,633.00                923,633.00                   100.00% Aging long
    Total                                  8,626,416.00                 8,626,416.00              --                        --(2)Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s shares inthe report period.
                                                                                                                               In RMB
                                                       Year-end balance                            Year-beginning balance
                 Name
                                            Book Balance              Amount               Book Balance               AmountNone(3)The front 5 units’ information of account receivable
                                                                                                                               In RMB
                               Relation with the                                                                 Portion in total
           Name                                                  Amount                     Ages
                                   Company                                                                       receivables (%)Victor Onward
                           Non- related parties                     1,851,841.00 Over 3 years                                  14.71%Textile(HK)Co., Ltd.Carnival Index
                           Non- related parties                     1,098,549.00 Over 3 years                                   8.73%International LtdTAI YANG
                           Non- related parties                     1,010,046.00 Over 3 years                                   8.02%ENTERPRISE CO.,LTD.VEGA CARMENT CO.
                           Non- related parties                       768,189.00 Over 3 years                                   6.10%Ltd
    Fly Dragon International Non- related parties                         573,536.00 Over 3 years                                   4.56%
    Total                                  --                           5,302,161.00              --                               42.12%(4)Account receivable from Related parties
                                                                                                                               In RMB
                                                                                                        Portion in total receivables
              Name                 Relation with the company                     Amount
                                                                                                                account(%)Shenye Union(HK)Co., The related parties controlled
                                                                                          299,354.00                            2.38%
    Ltd.                   the same Actual controller
    Total                                             --                                      299,354.00                            2.38%
        5.. Other receivable
        1.Type analyses:
                                                                           深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                                                                                                                   In 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     76.36% 3,368,370.00 100.00% 3,368,370.00                  72.15%    3,368,370.00 100.00%and had debt provisionprovided individuallyOther receivables provided bad debt provision in groups
    Account age group             54,318.00       1.23%                                 311,279.00          6.67%
    Subtotal of group             54,318.00       1.23%                                 311,279.00          6.67%Other account receivablewith minor individual
                             988,643.00      22.41%      988,643.00 100.00%         988,643.00         21.18%     988,643.00 100.00%amount but bad debtprovision is provided
    Total                       4,411,331.00      --        4,357,013.00      --       4,668,292.00        --        4,357,013.00       --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
                                                                                                                                   In RMB
        Description             Book balance              Amount of bad debts             Rate(%)                    Reason
    Nanjing East Asia                      1,313,370.00                1,313,370.00                        100.00% Aging longCCB.Guangdong Shunde
                                       1,080,000.00                1,080,000.00                        100.00% Aging longBranchChangzhou Dongfeng
    Textile Printing & dyeing                  975,000.00                  975,000.00                      100.00% 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
                                                                                                                                   In RMB
                                                                          深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
         Content                Book balance              Bad debt Provision          Rate(%)                    ReasonHongKong Victor
                                         673,005.00                  673,005.00                 100.00% Aging longOnwardShanghai Huayinke
                                         180,000.00                  180,000.00                 100.00% Aging longTrade Industry Co., Ltd.
    Shenzhen Environmental                                                                                    Aging long
    Management System                         35,000.00                   35,000.00                 100.00%Certification CenterShenzhen DesignInstitute of Ministry of
                                          30,000.00                   30,000.00                 100.00% Aging longMachinery IndustryShanghai Branch
    Other                                     70,638.00                   70,638.00                 100.00% Aging long
    Total                                    988,643.00                  988,643.00            --                          --(2)Particulars about the other receivable accounts due from shareholders with 5% or over of the Company’sshares in the report period.
                                                                                                                            In RMB
                                                   Balance at the period end                    Balance in year-begin
                 Name                                            Amount of bad debt                           Amount of bad debt
                                           Book amount                                    Book amount
                                                                      provision                                     provisionNone(3)The front 5 units’ information of other account receivable
                                                                                                                            In RMB
                               Relation with the                                                            Portion in total other
          Name                                                  Amount                   Ages
                                  company                                                                      receivables(%)CCB.Guangdong Shunde
                           Non-Related parties                     1,080,000.00 Over 3 years                                24.48%Branch
    Nanjing East Asia          Non-Related parties                     1,313,370.00 Over 3 years                                29.77%Changzhou Dongfeng
    Textile Printing & dyeing Non-Related parties                        975,000.00 Over 3 years                                22.10%Equipment Co., Ltd.HongKong Victor
                           Non-Related parties                       673,005.00 Over 3 years                                15.26%OnwardShanghai Huayinke
                           Non-Related parties                       180,000.00 Over 3 years                                 4.08%Trade Industry Co., Ltd.
                                                                            深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
              Total                     --                          4,221,375.00               --                                 95.69%
        6.Prepayments(1)Prepayments age :
                                                                                                                                  In RMB
                                         End of term                                                Beginning of term
        Age                                                      Proportion                                                 Proportion
                                    Amount                                                      Amount
                                                                  (%)                                                         (%)
    Within 1 year                                        13,230.00      100.00%                                    25,192.00         100.00%
    Total                                                13,230.00       --                                        25,192.00         --Notes to age of payment in advance:(2) The front 5 units’ information of Prepayments
                                                                                                                                  In RMB
                                 Relation with the
         Unit name                                               Amount                      Time               Reason of not clearing
                                    company
    Insurance                    Non-Related parties                           4,734.00 Within 1 year              Not settlement
    Vehicle license fees         Non-Related parties                           3,303.00 Within 1 year              Not settlement
    Repair fee                   Non-Related parties                           3,581.00 Within 1 year              Not settlement
    Registered fees              Non-Related parties                           1,612.00 Within 1 year              Not settlement
    Total                                   --                                13,230.00            --                          --Notes(3)Prepayment received by shareholding parties holding 5% or above of the Company’s shares in the reportperiod.
                                                                                                                                  In RMB
                                                     Amount at period-end                           Amount at period-beginning
                      Name
                                             Book balance         Bad debt Provision         Book balance          Bad debt ProvisionN/A7.Inventory(1)Inventory types
                                                                                                                                  In RMB
                                                                             深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                           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                     460,344.00       460,344.00                            460,344.00             460,344.00
    Total                             460,344.00       460,344.00                            460,344.00             460,344.00(2)Inventory Impairment provision
                                                                                                                                      In 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                        460,344.00                                                                                    460,344.00
    Total                                460,344.00                                                                                    460,344.00
    8. Disposable financial asset(1)Sellable financial assets
                                                                                                                                      In RMB
                           Items                                       Fair value at end of term            Fair value at beginning of term
    Available-for-sale equity instruments                                                    604,282.00                                582,942.00
    Total                                                                                    604,282.00                                582,942.00The amount of investment held to mature categorized to sellable financial assets was RMB 0 , Account for 0% oftotal investment held to mature.Statement on sellable financial assets:9.Long-term equity investment(1)Details of long-term equity investment
                                                                                                                                      In RMB
                                                                                               Explanati
                                                                                                   on of
                                                                       Sharehold    Voting     difference
           Accounti     Initial                                            ing       right     between
                                     Original                Ending                                                      Current     Cash
    Name          ng    investmen                   change                proportio proportio sharehold Devalue
                                     balance                 Balance                                                     devalue     bonus
            method      t cost                                           n in the   n in the        ing
                                                                        investee    investee proportio
                                                                                                   n and
                                                                                                   voting
                                                                              深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                                                                                 right
                                                                                               proportio
                                                                                                  n in
                                                                                                investeeZhejiangUnion
    Hangzho      Equity 58,588,40 66,931,68 1,298,507 68,230,19
                                                                           25.00%     25.00%                   0.00       0.00       0.00
    u Bay        method      3.00      5.00       .00      2.00ChuangyeCo., Ltd.
                           58,588,40 66,931,68 1,298,507 68,230,19
    Total              --                                                        --         --         --          0.00       0.00       0.00
                                3.00         5.00         .00      2.00
        10.Investment real estate(1)Measured by the cost of investment in real estate
                                                                                                                                 In RMB
           Items               Book amount at year         Increase at this period   Decrease at this period   Book balance in year -end
                                       beginning
                                          87,418,909.00                573,002.00                396,597.00                87,595,314.001. Total original price
                                          87,418,909.00                573,002.00                396,597.00                87,595,314.001.House, Building
    II.Total    accumulateddepreciation
                                          63,960,756.00              1,795,624.00                356,937.00                65,399,443.00accumulatedamortization
                                          63,960,756.00              1,795,624.00                356,937.00                65,399,443.001.House, BuildingIII. Total book value
                                          23,458,153.00              -1,222,622.00                 39,660.00               22,195,871.00
    of      investment      realestate
                                          23,458,153.00              -1,222,622.00                 39,660.00               22,195,871.001.House, BuildingV. Total book value of
                                          23,458,153.00              -1,222,622.00                 39,660.00               22,195,871.00investment real estate
                                                                       深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    1.House, Building                  23,458,153.00             -1,222,622.00                39,660.00              22,195,871.00
                                                                                                                       In RMB
                                                                                              This period
    Current amount of depreciation and amortization                                                                   1,795,624.00Accrual amount of impairment provision for investment properties of
                                                                                                                             0.00thecurrent period
    11. Fixed assets(1)Fixed assets
                                                                                                                       In 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
                                  60,842,374.00                                                  193,740.00      60,648,634.00fixed assetsIncluding :House and
                                  48,083,878.00                                                                  48,083,878.00building
    Machine equipment                  321,521.00                                                                     321,521.00
    Transpiration Equipment            4,021,537.00                                                  193,740.00       3,827,797.00
    Office Equipment and other         8,415,438.00                                                                   8,415,438.00
                               Book balance at     Current term           Current term    Decrease at this    Book balance in
                --
                               year beginning         new extra               provision       period             year -endII. Total of Accumulated
                                  35,443,480.00        132,060.00                                162,770.00      35,412,770.00depreciationIncluding :House and
                                  26,564,871.00                                                                  26,564,871.00building
    Machine equipment                  289,437.00                                                                     289,437.00
    Transpiration Equipment            3,233,386.00         44,865.00                                162,770.00       3,115,481.00
    Office Equipment and other         5,355,786.00         87,195.00                                                 5,442,981.00
                               Book balance in                                                                  Balance in
                --                                                             --
                                 year-begin                                                                      year-endIII. Total book value of
                                  25,398,894.00                                --                                25,235,864.00Fixed assetsIncluding :House and
                                  21,519,007.00                                --                                21,519,007.00building
    Machine equipment                   32,084.00                                --                                    32,084.00
    Transpiration Equipment              788,151.00                                --                                   712,316.00
                                                                    深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    Office Equipment and other       3,059,652.00                                  --                                   2,972,457.00IV. Total of Devalued
                                18,207,689.00                                  --                                  18,207,689.00ProvisionIncluding :House and
                                15,466,004.00                                  --                                  15,466,004.00building
    Transpiration Equipment             50,276.00                                  --                                      50,276.00
    Office Equipment and other       2,691,409.00                                  --                                   2,691,409.00V. Total book value of Fixed
                                 7,191,205.00                                  --                                   7,028,175.00assetsIncluding :House and
                                 6,053,003.00                                  --                                   6,053,003.00building
    Machine equipment                 32,084.00                                  --                                      32,084.00
    Transpiration Equipment            737,875.00                                  --                                     662,040.00
    Office Equipment and other         368,243.00                                  --                                     281,048.00Current depreciation is RMB 132,060.00 . The issue of fixed assets transferred from construction in progressoriginal price is RMB 0.12. Intangible assets
    (1) Intangible assets
                                                                                                                            In 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
                                     10,976,101.00                 20,153.00                                       10,996,254.00accumulated
                                     10,535,678.00                 20,153.00                                       10,555,831.00
    Land Use right
    Software                                440,423.00                                                                    440,423.00III. Book value of intangible
                                      2,047,619.00                -20,153.00                                        2,027,466.00assets
                                      1,820,459.00                -20,153.00                                        1,800,306.00Land Use right
    Software                                227,160.00                                                                    227,160.00
                                                                          深圳中冠纺织印染股份有限公司 2014 年半年度报告全文IV.Total value of provision
                                              227,160.00                                                             227,160.00for impairment
    Land Use right
    Software                                      227,160.00                                                             227,160.00V. Total Book value of
                                         1,820,459.00                   -20,153.00                                 1,800,306.00intangible assets
                                         1,860,764.00                   -20,153.00                                 1,800,306.00
    Land Use rightSoftwareThe amortization amount is 20,153.00.13.Goodwill
                                                                                                                          In RMB
    Name of the investee or the        Balance in           Increase at this   Decrease at this   Balance in      Ending devalue
    matter of forming Goodwill         year-begin               period                period      year-end          provisionFor the goodwill formed from
    holding shares of Nanhua                5,099,624.00                                              5,099,624.00Company,
    Total                                   5,099,624.00                                              5,099,624.00Statement of basis for impairment testing and provision of goodwill:14. Deferred income tax assets and deferred income tax liability
    (1)Confirmed the deferred income tax assets and deferred income tax liabilityRecognized deferred income tax assets and deferred income tax liabilities
                                                                                                                          In RMB
                        Items                                   Year-end balance                 Year-beginning balanceDeferred income tax assets:Deferred income tax liability:Assessed tax-free periods of time caused by
                                                                                   669,475.00                        702,735.00differences in income
    Subtotal                                                                           669,475.00                        702,735.00Details of the un-recognized deferred income tax assets
                                                                                                                          In 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
                                                                                                                          In RMB
                                                                            深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
            Year                     At end of term             At beginning of term                               NotesDetails of taxable differences and deductible differences
                                                                                                                                      In RMB
                                                                                Amount of temporary differences
                        Items
                                                                       At end of term                        At beginning of termDifferences in taxable items
    Revaluation of assets                                                                 4,057,424.00                              4,259,000.00
    Subtotal                                                                              4,057,424.00                              4,259,000.00Deductible difference project(2)Deferred income tax assets and liabilities are presented as net amount after neutralizationStatement on deferred income tax assets and liabilities:
                                                                                                                                      In 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:                         669,475.00                                       702,735.00Details of taxable differences and deductible differences
                                                                                                                                      In RMB
                        Items                                                   Offsetting Amounts of This PeriodDetails of taxable differences and deductible differences15. Provision for depreciation of assets
                                                                                                                                      In RMB
                                                                                        Decreased in this period
                                  Book balance at the    Increase in this                                                      Balance in
             Items                                                                                        Switch
                                  beginning of term           period             Switch back                                    year-end
                                                                                                       cancellation
    I.Provision for bad debts              16,943,865.00                                                                           16,943,865.002 Inventory impairment
                                          460,344.00                                                                              460,344.00provision5. Long-term equity
    investment impairment                                                    0.00                                                               0.00provision7.Fixed asset impairment
                                       18,207,689.00                                                                           18,207,689.00provision
                                                                      深圳中冠纺织印染股份有限公司 2014 年半年度报告全文12. Intangible asset
                                        227,160.00                                                                 227,160.00impairment provision
    Total                                35,839,058.00                                                               35,839,058.00Notes16. Account payable
        (1)Account payable
                                                                                                                        In RMB
                       Items                            Balance in year-end                    Balance in year-begin
    Over 1 year                                                               3,199,529.00                            3,186,939.00
    Total                                                                     3,199,529.00                            3,186,939.00(2)There was account payable due from shareholders with more than 5% (including 5%) of the voting shares ofthe company
                                                                                                                        In RMB
                       Name                             Balance in year-end                    Balance in year-beginN/A(3)The description of large-sum accounts payable with the age over 1 year:1.Accounts payable with age over one year included a number of accounts, without single significant amount ofaccounts payable.2. Particulars about the receivable accounts due from shareholders with 5% (5%)or over of the Company’s shares3.Account payables of foreign currency balances
    Name                            Amount at period-end                               Amount at period-beginning
                 Former currency     Converting        RMB          Former currency Converting rate             RMB
                                        rate
    HKD                        324,942       0.78623         255,479            324,942         0.81090                     263,495
    Total                                                    255,479                                                        263,495
        17. Advance account
        1. Advance account
                                                                                                                        In RMB
                        Items                                Balance in year-end                Balance in year-begin
    Over 1 year                                                                 1,076,979.00                          1,076,531.00
    Total                                                                       1,076,979.00                          1,076,531.00
        (2)There was Advance account due from shareholders with More than 5% (including 5%) of the votingshares of the company.
                                                                                                                        In RMB
                        Items                            Balance in year-end                   Balance in year-begin
                                                                          深圳中冠纺织印染股份有限公司 2014 年半年度报告全文N/A(3)The description of large-sum accounts payable with the age over 1 year:1.Particulars about the receivable accounts due from shareholders with 5% (5%)or over of the Company’s shares2. Advance account of foreign currency balances
    Name                           Amount at period-end                                      Amount at period-beginning
                    Former        Converting rate       RMB               Former        Converting rate               RMB
                    currency                                              currency
    USD                      96,411           6.1528             593,198           96,411             6.0969                       587,808
    Total                                                        593,198                                                           587,808
      18. Payable Employee wage
                                                                                                                               In RMB
        Items          Balance in year-begin        Increase in this period        Payable in this period      Balance in year-end1.Wages, bonuses,
    allowances and                        618,756.00                 694,507.00                       800,219.00                513,044.00subsidies3. Social insurance
                                        6,392.00                 102,136.88                       108,528.88premiumsBasic old-age
    insurance                                                        102,136.88                       102,136.88premiumsSupplementary
                                        6,392.00                                                    6,392.00pension insuranceIV. Public reserves
                                                                   34,115.00                       34,115.00for housing
    VI.Other                              484,204.00                   74,004.00                       50,207.00                508,001.00Union funds and
    staff education                       377,093.00                   74,004.00                                                451,097.00fee
    Total                               1,109,352.00                 904,762.88                       993,069.88            1,021,045.00The amounts of arrears of staff salary and welfare payable are RMB 0 00.The amounts of trade union funds and staff education expenses are RMB0.00, the amounts of non-monetarybenefits are RMB 0.00, and the compensations for the lifting of labor relations is RMB0.00.The wages payable expected to pay and the amount for payment:19. Tax Payable
                                                                                                                               In RMB
                                                                深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                         Items                               At end of term                      At beginning of term
    VAT                                                                       -137,711.00                            -137,711.00
    Business Tax                                                                  147,341.00                         205,449.00
    Enterprise Income tax                                                    3,620,547.00                           3,590,695.00
    City Construction tax                                                          10,314.00                          17,697.00
    Educational surtax                                                              4,420.00                            7,584.00
    Local education surcharges                                                      2,947.00                            5,056.00
    House property Tax                                                            187,320.00                         187,320.00
    Land use tax                                                                  144,957.00                         144,957.00
    Stamp Tax                                                                     229,144.00                         229,144.00
    Total                                                                    4,209,279.00                           4,250,191.00Statement on tax payable: Please provide the calculating processes then taxable income is balanced betweenbranch companies or factories as approved by the tax bureau.20.Dividend payable
                                                                                                                     In 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 tense*1Co., Ltd*2
    CITIC Group*2                                  243,189.00                     243,189.00   Capital tense*1Shenzhen Nanyou (Group)
                                               121,595.00                     121,595.00   Capital tense*1Company*2
    Shenye Union(Hongkong)Co., Ltd.              121,595.00                     121,595.00   Capital tense*1
    HongKong Victor Onward                         486,378.00                     486,378.00   Capital tense*1
    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,Because Nanhuan Company’s capital was more tension and the shareholders did not ask for the fund, the payabledividends have not been paid.*2 The above three companies are the former shareholders of Nanhuan Company, the subsidiary of the company.21. Other payable
        (1)Other payable
                                                                                                                     In RMB
                        Name                           Balance in year-end                     Balance in year-begin
    Thereinto :Over 1 year                                                16,781,726.00                            22,663,345.00
                                                             深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    Within 1 year                                                         30,000,000.00
    Total                                                                 46,781,726.00                     22,663,345.00(2)Explanation on other account payable with over one year ageOther payables which are longer than one year mainly were the loans borrowed by Nanhuan Company thesubsidiary of the company from related companies, which have not been paid because of capital tension.(3)Statement on large amount other payable accounts
    Items                   Amount                  Age                                     Content
    Deposit                        30,000,000   Within 1 year             Deposit
    Union                           9,011,866    Over 3 years             Loan and InterestDevelopmentGroup
    State                           3,000,000    Over 3 years             Current accountDevelopment& InvestmentCo., Ltd
    Jinrongyuan                     1,100,000    Over 3 years             Property DepositCompany
    Shenzhen                         700,734     Over 3 years             Loan and InterestUnionPropertyGroup Co.,Ltd.
        Total                  43,812,600Paid Union Group loan principal RMB 6,291,274.60 in current period.22.Other current liabilities
                                                                                                                 In RMB
                    Items                          Year-end balance                     Year-Beginning balance
    Audit fees                                                       1,170,917.00                             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                                                            1,322,263.00                             1,547,263.00Statement of other current liabilities:
                                                                    深圳中冠纺织印染股份有限公司 2014 年半年度报告全文23. Long-term loan(1)Long-term loans classifications
                                                                                                                       In RMB
                    Items                                 Year-end balance                    Year-Beginning balance
    Loan by pledge                                                          1,050,038.00                            1,101,349.00
    Total                                                                   1,050,038.00                            1,101,349.00Statement on long-term borrowings.The borrowing was the installment payment for the bousing in Hongkong bought by the subsidiary of theCompany Xingye Company , the mortgage article was the house purchased. The installment payment was HKD 2,366,000, Which paid in 240 month, from March, 2004. Mortgage rates fall 2.65 percent compared to HKmortgage bank prime rate. As of June 30,, 2014, the principal amount of HK $ 1,322,882 (equivalent to RMB1,050,038 Yuan) was unpaid.24.Long-term payable(1)Top 5 long-term payable
                                                                                                                       In RMB
        Name            Term       Initial amount    Interest rate(%) Interest payable     End balance       Condition
    Assess the      Unlimited
                                      8,230,694.00                                             8,309,417.00value of assets duration(2)Details of finance leasing payments in long-term payable
                                                                                                                       In RMB
                                                      End of term                               Beginning of term
                 Name
                                       Foreign currency              RMB               Foreign currency         RMBGuarantee 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.
                                                                           深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    25.Other Non-current liabilities
                                                                                                                                    In 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                                    836,792.00Statement on other non-current liabilitiesLiabilities related to government grants
                                                                                                                                    In RMB
                                                      The
                        Balance at the New grants                                                     Balance at
                                                      non-operating Other                                        Income related to
    Liabilities             beginning   of amount      of                                                 the end of
                                                      revenue amount changes                                     assets
                        period         this period                                                    period
                                                      of this period
        26. Stock capital
                                                                                                                                    In RMB
                                                            Increase/decrease this time (+ , - )
                      Balance                                                                                                   Balance
                                    Issuing of new                     Transferred
                   Year-beginning                     Bonus shares                            Other            Subtotal         year-end
                                        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 assets is required for the years prior to incorporation; for shareholding limitedcompanies reformed from limited companies shall provide the capital verification at incorporation.
    27. Capital reserves
                                                                                                                                    In 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                                            9,926,219.00                    15,764.00                                     9,941,983.00
    Total                                           39,645,048.00                    15,764.00                                    39,660,812.00Statement on capital reserves:
    The capital surplus change this year refers to the change of fair value for the financial assets available to sale
                                                                       深圳中冠纺织印染股份有限公司 2014 年半年度报告全文this year.28. Surplus reserve
                                                                                                                             In 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
    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:29. Retained profits
                                                                                                                             In RMB
                                                                                                        Extraction or distribution of
                      Items                                             Amount
                                                                                                                the proportionAfter adjustments: Retained profits at the period
                                                                                      -108,059,131.00                 --beginningAdd:Net profit belonging to the owner of the
                                                                                          738,330.00                  --parent company
    Retained profits at the period end                                                    -107,320,801.00                 --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.
                                                                      深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
        30. Business income, Business cost
        (1)Business income, Business cost
                                                                                                                          In RMB
                    Items                 Amount of current period                            Amount of previous period
    Income from Business income                                             5,077,451.00                               4,990,626.00
    Business cost                                                           1,446,029.00                               2,073,313.00(2)Main business(Industry)
                                                                                                                          In RMB
                                Amount of current period                                     Amount of previous period
                Name
                                   Business income             Business cost           Business income        Business cost
    Rent                                     5,077,451.00               1,446,029.00             4,990,626.00          2,073,313.00
    Total                                    5,077,451.00               1,446,029.00             4,990,626.00          2,073,313.00(3)Main business(Production)
                                                                                                                          In RMB
                                Amount of current period                                     Amount of previous period
                Name
                                   Business income             Business cost           Business income        Business cost
    Rent                                     5,077,451.00               1,446,029.00             4,990,626.00          2,073,313.00
    Total                                    5,077,451.00               1,446,029.00             4,990,626.00          2,073,313.00(4)Main Business(Area)
                                                                                                                          In RMB
                                Amount of current period                                     Amount of previous period
                Name
                                   Business income             Business cost           Business income        Business cost
    Domestic                                 5,077,451.00               1,446,029.00             4,990,626.00          2,073,313.00Hong Kong
    Total                                    5,077,451.00               1,446,029.00             4,990,626.00          2,073,313.00
        (5)Total income and the ratio of operating income from top five clients
                                                                                                                          In RMB
                Name                         Business Income                                  Proportion(%)
    Shenzhen Jinrongyuan                                       2,961,000.00                                                   58.32%
                                                                       深圳中冠纺织印染股份有限公司 2014 年半年度报告全文Development Co., Ltd.
    SCSExpress International Limited                               463,749.00                                                   9.13%Shenzhen Hebainian Investment
                                                               300,000.00                                                   5.91%Development Co., Ltd.Shenzhen Nanshan Saint Laurent
                                                               264,600.00                                                   5.21%Wedding Photography
    HIP SENG                                                       236,997.00                                                   4.67%
    Total                                                        4,226,346.00                                                 83.24%Notes
        31. Business tax and subjoin
                                                                                                                           In RMB
                Items                                                Same period of the                  Standard
                                            Report period              previous year
    Business tax                                        228,697.00                 205,952.00 5%
    Urban construction tax                               16,008.00                  14,417.00 7%
    Education surcharge                                   6,861.00                   6,178.00 3%
    Local Education surcharge                             4,574.00                   4,119.00 2%
    Total                                               256,140.00                 230,666.00                    --Notes
          32. Investment income
          (1)Investment income
                                                                                                                           In RMB
                        Items                               Amount of current period            Amount of previous periodIncomes from disposal of long-term equity
                                                                               857,157.00                               -71,083.00investment
    Total                                                                          857,157.00                               -71,083.00(2)long-term equity investment incomes confirmed by equity method include:
                                                                                                                           In RMB
                                       Amount of current period      Amount of previous
                 Name                                                                          Reason to increase or decrease
                                                                            period
    Hangzhou Bay Company                                  857,157.00               -71,083.00 Due to the income increased
    Total                                                 857,157.00               -71,083.00                    --Statement on investment gains, please state whether or not there are material constrains on retrieving of
                                                                           深圳中冠纺织印染股份有限公司 2014 年半年度报告全文investment gains.33. Non-operating income
    (1)Non-operating income
                                                                                                                                    In RMB
                                                                                                                    The amount of
                     Items                     Amount of current period     Amount of previous period            non-operating gains &
                                                                                                                        lossedTotal income from liquidation of
                                                                                                  3,929.00non-current assetsIncluding:Income from liquidation of
                                                                                                  3,929.00fixed asset
    Total                                                                                             3,929.00Notes34. Non-Operation expense
                                                                                                                                    In 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                             1,918.00                   19,043.00
    Lawsuit expenses                                                                                  2,400,000.00
    Total                                                                    1,918.00                 2,419,043.00Notes35. 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 of parent 1                                          738,330                             -4,123,606company
    Non-recurring gain/loss attributable of the parent 2                                          -1,918                             -2,415,114company
    Net profit attributable to common share holders 3=1-2                                        740,248                             -1,708,492of the Company after deducting of non-recurringgain/loss
    Total shares at the beginning of the year           4                                   169,142,356                          169,142,356
    Additional share capital transferred from public 5                                    ——                            ——reserve or additional shares from shares dividenddistribution(Ⅰ)
    Additional shares from issuing new shares or 6                                        ——                            ——
                                                                                深圳中冠纺织印染股份有限公司 2014 年半年度报告全文debt-converted shares(Ⅱ)
    Accumulative months of the additional share 7                                           ——                        ——commencing from the next moth till the end ofthe year
    Decreased shares due to repurchase                       8                              ——                        ——
    The number of months since the next month of 9                                          ——                        ——share decreasing to the end of report term
    Amount of shares reduced                                 10                             ——                        ——
    Number of months in the report term                      11                             ——                        ——
    Weighted average of common shares issued 12=4+5+6×7÷11                                   169,142,356                     169,142,356
    outside                                                      -8×9÷11-10
    Basic earning pershare(Ⅰ)                             13=1÷12                                  0.004                         -0.02
    Basic earning pershare(Ⅰ)(Ⅱ)                       14=3÷12                                  0.004                         -0.01
    Diluting     potential   common     share    interests 15                               ——                        ——recognized as expenses
    Transformation fees                                      16                             ——                        ——
    Income tax rate                                          17                                        25%                            25%
    Amount of shares increased by transforming or 18                                        ——                        ——
    exercising    of   company      bond,     subscriptioncertificate, or share option
    Diluted earning per share(Ⅰ)                          19=[1+(15-16)×(1-17                      0.004                         -0.02
                                                         )]÷(12+18)
    Diluted earning per share(Ⅱ)                          19=[3+(15-16)×(1-17                      0.004                         -0.01
                                                         )]÷(12+18)
      36. Other comprehensive income
                                                                                                                               In RMB
                                Items                                   Amount of current period           Amount of previous period
    1.Loss amount produced by sellable financial assets                                            15,764.00                   -126,556.00
                               Subtotal                                                        15,764.00                   -126,556.00
    4. Translating difference in foreign currency financial reports                              246,825.00                    -482,695.00
    Subtotal                                                                                     246,825.00                    -482,695.00
                                Total                                                        262,589.00                    -609,251.00Notes
                                                                           深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    37. Supplement Information for cash flow statement(1)Supplement Information for cash flow statement
                                                                                                                           In RMB
                  Supplement Information                         Amount of current period            Amount of previous period
                                                                                --                              --I. Adjusting net profit to cash flow from operating activities
    Net profit                                                                        738,330.00                    -4,123,606.00Depreciation of fixed assets, oil and gas assets and
                                                                                       132,060.00                      121,945.00consumable biological assets
    Amortization of intangible assets                                                       20,153.00                       20,153.00Loss on disposal of fixed assets, intangible assets and other
                                                                                          1,918.00                       15,114.00long-term deferred assets
    Financial cost                                                                          -58,719.00                     273,998.00
    Loss on investment                                                                     -857,157.00                      71,083.00
    Decease of operating receivables                                                      1,848,263.00                    1,619,922.00
    Increased of operating Payable                                                         883,366.00                     3,950,831.00
    Net cash flows arising from operating activities                                      2,708,214.00                    1,949,440.00II. Significant investment and financing activities that
                                                                                --                              --without cash flows:
    III. Net increase of cash and cash equivalents                                  --                              --
    Ending balance of cash                                                               60,249,062.00                   48,768,467.00
    Less: Beginning balance of cash                                                      63,502,910.00                   52,227,262.00
    Net increase of cash and cash equivalents                                            -3,253,848.00                   -3,458,795.00(2)Composition of cash and cash equivalents
                                                                                                                           In RMB
                            Items                                   Amount of current period         Amount of previous period
                                                                                     60,249,062.00                   63,502,910.00I. Cash
                                                                                        58,423.00                       41,613.00Of which: Cash in stock
    Bank savings could be used at any time                                               59,519,939.00                   62,791,183.00
    Other monetary capital could be used at any time                                 5,670,700.00                     670,114.00
                                                                                 深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
    III. Balance of cash and cash equivalents at the period end                                    60,249,062.00                            63,502,910.00NotesVIII.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
                                                                  Import        &
                                                                  export
                                                                  business
                                      Union                       ―processing
                          Limited     Bulding,She                 with
    Union       Actual                                  Dong                                                                       Union         19033795-
                          liability   nnan Zhong                  materials‖        90,606,000        3.36%         3.36%
    Group       controller                              Bingen                                                                     Group         7
                          Company Road,                           and
                                      Shenzhen                    processing
                                                                  with
                                                                  imported
                                                                  materialsNotes1.The 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                               ---                ---                            1,123,887,7122.Shares or equity held by the parent company and changes
                                                                               深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
               Name                              Held share amount                               Held share proportion(%)
                                         Amount at year         Amount at year        Proportion at year Proportion at year beginning %
                                              end                  beginning               end %
    Union Group                                     5,681,089                 5,681,089                   3.36                                3.36
    Union Holding                                  43,141,032               43,141,032                   25.51                               25.51
    *Union Group holds 31.32% of equity capital of Union Holdings, it controls Union Holdings, and UnionHoldings is a controlling shareholder of the company, thus Union Group is the actual controller of the company2.Particulars of the subsidiaries
                                                                                                             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       HK                             Trade                              100.00%      100.00%
                                                                                        (HKD)
    Onward         s             Company
                             Limited
    Nanhua Controlled                                          Hu                           85,494,700
                     Liability             Shenzhen                       Product                             69.44%       69.44% 618836600
    Company subsidiaries                                       Yongfeng                     (HKD)
                             CompanyShenzhen Controlled Limited
    East Asia subsidiarie Liability            Shenzhen        Sun Zhiping Trade            3,000,000             51.00%       51.00% 799228355
    Company s             Company
                             Limited
    Shengzhong Controlled                                                                   1,000,000
                             Liability     HK                             Trade                              100.00%      100.00%
    Co., Ltd.     subsidiaries                                                              (HKD)
                             Company
                             Limited
    Xingye        Controlled                                                                10,000
                             Liability     HK                             Trade                              100.00%      100.00%
    Company       subsidiaries                                                              (HKD)
                             Company3. Information of Joint venture and Affiliated company
                                                                          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
                                                                               深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
                                                          Real estate
                                                           Exploiters,
                                                           Basis
    Zhejiang                                                   constructio
                Limited
    Union                                      Dong            n             247,476,832                              Affiliated
                Liability       Hanghou                                                    25.00%       25.00%                 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 controllerNotes5. Related transactions.(1)Related leasingThe Company is the lender
                                                                                                                                   In 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
                                                                                                                                   In 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 Agreement Price              83,520.00
                                                                      2012Notes
    On November 2012, the Company leased Room 1307 and 1308 of Union Building owned by Union Group.In November 2012, The term of tenancy is from November 1, 2012 to October 31, 2014. The monthly rent is
                                                                            深圳中冠纺织印染股份有限公司 2014 年半年度报告全文RMB 6,960. The rent was determined according to market price.
    6. Payables and receivables of the related partyListed company related party fund
                                                                                                                              In 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                                             299,354.00             299,354.00        299,428.00        299,428.00
                              Co., Ltd.The listed company Payables of the related party
                                                                                                                              In RMB
                                                                                Amount at year end         Amount at year beginning
                Name                              Related party
    Other payable                             Union Development Group                           9,011,866.00                15,303,141.00
                               &