Stockcode:000045,200045          StockAbbreviation:ShenTextileA,ShenTextileB          AnnouncementNo.2019-14
    Summaryof2018AnnualReportofShenzhenTextile

                  (Holdings)Co.,Ltd.

1.Importantnotes
Thesummaryisabstractfromfull-textofannualreport,formoredetailsinformation,investorsshouldfoundinthefull-textofannualreportthatpublishedonwebsiteofShenzhenStockExchangeandotherwebsiteappointedbyCSRC.
OtherdirectorsattendingtheMeetingforannualreportdeliberationexceptforthefollowed:

  Nameofdirectorabsent      Titleforabsentdirector        Reasonsforabsent              Attorney

          ZhuJun                  Chairman                Workingreason              ZhuMeizhu

Non-standardauditor’sopinion
□Applicable√Notapplicable
Preliminaryplanforprofitdistributiontothecommonshareholdersorturningthecapitalreserveintothesharecapitalforthereportingperiod,whichhasbeenreviewedandapprovedattheboardmeeting
□Applicable√Notapplicable
TheCompanyhasnoplanofcashdividendscarriedout,bonusissuedandcapitalizingofcommonreserveseither.Preliminaryplanforprofitdistributiontothepreferenceshareholdersforthereportingperiodwhichhasbeenreviewedandapprovedattheboardmeeting
□Applicable√Notapplicable
II.Basicinformationaboutthecompany
1.Companyprofile

Stockabbreviation                ShenTextileA，ShenTextileB  Stockcode            000045,200045

Stockexchangeforlisting          ShenzhenStockExchange

Contactpersonandcontactmanner              Boardsecretary                SecuritiesaffairsRepresentative

Name                          JiangPeng                            LiZhenyu

OfficeAddress                    6/F,ShenfangBuilding,No.3Huaqiang    6/F,ShenfangBuilding,No.3Huaqiang

                                NorthRoad,FutianDistrict,Shenzhen      NorthRoad,FutianDistrict,Shenzhen

Fax                            0755-83776139                        0755-83776139

Tel                            0755-83776043                        0755-83776043

E-mail                          jiangp@chinasthc.com                  lizy@chinasthc.com

II.Briefintroductiontothemainbusinessorproductsinthereportingperiod

    1. MainBusinesstheCompany
Thecompany'smainbusinesscoveredsuchthehighandnewtechnologyindustryasrepresentedbyLCD
polarizer,itsownpropertymanagementbusinessandtheretainedbusinessofhigh-endtextileandgarment
Inthereportperiod,nosignificantchangehappenedtothemainbusinessoftheCompany.Ononehand,theCompanyfocusedonpromotionofthepolarizeroperationcapacity,whereinittookmeasuresofoptimizingproductionprocessandproductstructure,tighteningqualitycontrolandhighlightingtechnologyresearch&developmentamongothers,andshifteditspriorityfromsalestosellingprofitsinastrategicallymarket-orientedway;ontheotherhand,itcompletedtheconstructionandoptimizationoftheLine6Projectasplanned,tobespecific,InJune2018,itcompletedthetechnicaltransformationandtestrunofTFT-LCDandOLEDpolarizerLine6Projectthatwastransferredtofixedassetsandembarkedonamassproductionstage.WithregardtooptimizationandpromotionoftheLine6Project,theCompanycompletedthecomprehensiveaccelerationofthefirstthreeprocesses--pre-processing,extensionandcoating,introducedshapegrindingmachinesintherearsectionoftheproductionlineinthefirsthalfofyearandrealizedregularmassproductioninthethirdquarter,fillingtheCompany'sgapintheshapepolarizerprocessing;thirdly,theCompanytooktheinitiativetoboostconstructionofthejumboTVpolarizerindustrializationproject(Line7)andcompletedtheprojectapproval,feasibilitystudyandexaminationandapprovalwork.AdoptedattheGeneralMeetingofShareholdersinAugust2018throughdeliberation,theLine7ProjectdulyembarkedonitsconstructioninSeptember2018andpassedtheEIAinDecember2018.TheplantandequipmentdesignwasoptimizedintheLine7ProjectonthegroundofasignificanttechnicalsupportgivenbyNittoDenkointermsofproductiontechnology,plantdesign,andAGVpathoptimizationamongothers;fourthly,toenhancemanagementserviceandincreasebenefitofpropertymanagemententerprises,theCompanyfurtherintensifiedallthemanagementserviceideasofpropertymanagemententerprises,tooktheinitiativetocopewithalltheadverseeffectsofsuchfactorsaseconomicdownturnandmarketdepressiononpropertyleasingandmanagementandincreasedtherentalincomewitheffort;fifthly,confrontedwiththesluggishtraditionaltextileindustry,theCompanytooktheinitiativetoovercomesuchunfavorableeffectsasariseinthecostofrawmaterialsandlaborandgaveprioritytoorderproductionthroughoptimizationofcustomerandproductstructuretobringthemoney-losingtextilebusinessintotheblack;sixthly,theCompanytightenedsafetyandenvironmentalprotectionwork,safeguardedenterpriseharmonyandstability,andkeptgivingaprioritytosafeandenvironment-friendlyproductiontotaketheinitiativetodischargeitssocialresponsibilitywhilepursuingagreen,healthandsustainabledevelopment.

    AsatypeofupstreamrawmaterialsofLCDpanelsandoneofessentialandfundamentalmaterialsinthepaneldisplayindustry,polarizerSARewidespreadusedinavarietyofareas,LCDpanelsandOLEDpanelsforsmartphones,tabletPCsandTVsets,instruments,apparatuses,sunglasses,andlightfiltersofcameraequipment,tonameafew.Atthemoment,theCompanyhas6masspolarizerproductionlinesformakingproductsthatcoversuchareasasTN,STN,TFT,OLED,3D,dyefilms,andopticalfilmsfortouchscreensandareprimarilyusedinTV,NB,navigators,Monitor,vehicle-mounted,industrialcontrol,instruments,apparatuses,smartphones,wearableequipment,3Dglasses,sunglassesandotherproducts,basedonwhich,theCompanyhasbecomeaqualifiedsuppliertoChinaStarOptoelectronicsTechnology(CSOT),BOE,InfovisionOptoelectronics(IVO),ShenchaoOptoelectronic,LGD,Tianmaandothermajorpanelenterprisesthroughconstantextensionofitsmarketingchannelsandbuildingofitsownbrand.

    TheCompany'smainproductsmadeineachpolarizerproductionlineandtheirapplicationareasfollows:

Line                Place                Product      Plannedcapacity      Mainproducts

                                        breadth

      Line1              Pingshan        500mm        600,000m2            TN/STN/dyefilm

      Line2              Longhua        500mm      1.2millionm2            TN/STN/CSTN

      Line3              Longhua        650mm        1millionm2          TN/STN/CSTN/TFT

      Line4              Pingshan        1490mm      6millionm2          TN/STN/CSTN/TFT

      Line5              Pingshan        650mm        2millionm2                TFT

      Line6              Pingshan        1490mm      10millionm2              TFT/OLED

      Line7              Pingshan        2500mm      32millionm2              TFT/OLED

(Underconstruction)

    (II)Company'sbusinessmodel

    Thepriorityofthepolarizerindustryisgraduallyshiftingfromtheconventionalresearch&development-production-salesbusinessmodeltothecustomer-orientedbusinessmodelofjointresearch&developmentandfullservice.TheCompanyreducedproductionlinksandcostsandcreatedvalueforcustomersandawin-winsituationthroughcooperationbyunderstandingcustomers'needs,makinghigh-qualityproductsthroughjointresearch&developmentandhigh-standardproductionmanagementandusingadvancedpolarizerrollingandattachingequipmentinconjunctionwithdownstreampanelmanufacturers'productionlines.

    (III)MajorfactorsfordrivingtheCompany'sperformance

    Referto"III.Analysisoncorecompetitiveness"inthissectionfordetails.

    (IV)DevelopmentstageandperiodiccharacteristicsoftheindustrywheretheCompanyisinvolvedandtheCompany'spositionintheindustry

    Referto"IX.Company'soutlookforfuturedevelopment"inSectionIVfordetails.

    Inthefuture,theCompanywilldeependrivingthemixed-ownershipreformworkandstrengthenstrategiccooperationbasedonmorethan20yearsofindustrialoperationexperienceandregionaladvantages.Tobespecific,theCompanywillfurtheroptimizeitsequitystructure,invigorateitsoperationandpromoteitsproductiontechnologyandbusinessmanagementstandardsthroughintegrationofresourcesinthepolarizerandopticalfilmindustries;meanwhile,theCompanywillsparenoefforttopushforwardtheconstructionofanultra-widepolarizerproductionlinetooccupythehighlylucrativejumboLCDTVpolarizerproductmarket;inadditiontoworkingonthepolarizerindustry,theCompanywillmakealeapingdevelopmenttowardstheopticalfilmindustrytomakeSAPOPhotoelectricabiggerandstrongerenterprise.
3.Majoraccountingdataandfinancialindicators
（1）Majoraccountingdataandfinancialindicatorsforthelastthreeyears
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No

                                                                                          InRMB

                                                                    Changedoverlastyear

                                    2018              2017              （％）            2016

Operatingincome（RMB）          1,272,356,771.34    1,475,545,719.72            -13.77%    1,198,200,216.42
Netprofitattributabletothe            -22,980,624.93        52,776,101.46          -143.54%    -87,270,604.54
shareholdersofthelistedcompany

（RMB）
Netprofitafterdeductingof

non-recurringgain/lossattributable        -65,404,429.81        3,140,446.26          -2,182.65%    -102,767,648.41
totheshareholdersoflisted
company（RMB）

Cashflowgeneratedbybusiness        -460,494,321.15      -28,518,702.31          -1,514.71%    -55,264,465.84
operation,net（RMB）

Basicearningper                              -0.04              0.100          -140.00%            -0.17
share(RMB/Share)

Dilutedgainsper                              -0.04              0.100          -140.00%            -0.17
share(RMB/Share)(RMB/Share)

WeightedaverageROE(%)                    -0.96%              2.23%            -3.19%            -4.10%
                                                        Endof      Changedoverlastyear

                                  Endof2018            2017              （％）          Endof2016

Grossassets（RMB）                4,619,203,416.79    4,195,746,507.56            10.09%    4,119,586,266.47
Netassetsattributableto

shareholdersofthelistedcompany      2,373,329,991.86    2,397,474,603.79            -1.01%    2,339,554,176.31
（RMB）
（2）MainFinancialIndexbyQuarters

                                                                                                  InRMB
                                  Firstquarter        Secondquarter      Thirdquarter        Fourthquarter

Operatingincome                    221,307,388.08      252,955,020.49      433,011,400.70      365,082,962.07
Netprofitattributabletothe              5,616,717.00        4,030,259.15        2,621,782.96      -35,249,384.04
shareholdersofthelistedcompany
Netprofitafterdeductingof

non-recurringgain/lossattributable        -4,641,384.38        -6,175,930.54        -7,620,712.88      -46,966,402.01
totheshareholdersoflisted
company

NetCashflowgeneratedby            -35,263,573.85      -93,587,315.59      -269,937,851.60      -61,705,580.11
businessoperation
Whethersignificantvariancesexistbetweentheabovefinancialindexortheindexwithitssumandthefinancialindexofthequarterlyreportaswellassemi-annualreportindexdisclosedbytheCompany.
√Yes□No

Operatingincome      Firstquarter        Secondquarter        Thirdquarter          1-3quarterintotal

Disclosureamount      221,307,388.08        316,980,662.53          533,270,021.4          1,071,558,072.01
AuditedConfirmed      221,307,388.08        252,955,020.49          433,011,400.7            907,273,809.27
Amount

discrepancy                        0        -64,025,642.04        -100,258,620.70          -164,284,262.74
4.Sharecapitalandshareholders
（1）NumberofholdersofordinarysharesandpreferenceshareswithrestoredvotingrightandTop10shareholders

                                                                                    Inshares
Totalnumber            Total                      Thetotalnumber          Total

ofcommon              shareholdersat                ofpreferredshar          preferredsharehold

shareholdersat          theendofthe                eholdersvotingri          ersattheendofthe

theendofthe      36,891monthfromthe        35,264ghtsrestoredatp        0monthfromthedate          0
reporting                dateofdisclosing            eriod-end(if              ofdisclosingthe

period                  theannualreport              any)(SeeNotes            annualreport(if

                                                    8)                      any)(SeeNotes8)

                                      Shareholdingsoftop10shareholders

Shareholders  Natureof    Proportionof  Numberof  Amountofrestrictedsharesheld      Numberofshare


              shareholder  sharesheld(%)  sharesheld                                    pledged/frozen

                                          atperiod                                Stateofshare  Amount

                                            -end

Shenzhen

Investment    State-owned        45.78%234,069,436                            0

HoldingsCo.,  legalperson
Ltd.
Shenzhen

Shenchao      State-owned

Technology    Legalperson          3.15%16,129,032                            0

InvestmentCo.,
Ltd.
FujiangBairui
Jiayuan,Asset

Management  Other                0.77%  3,934,035                            0

Co.,Ltd.－
BairuiJiayuan
GrowthIFund

              Domestic

SunHuiming  Nature              0.62%  3,192,767                            0

              person

              Domestic

LiSongqiang  Nature              0.56%  2,873,078                            0

              person

              Domestic

ZhengJunshengNature              0.36%  1,830,000                            0

              person

              Domestic

KuangGuoweiNature              0.28%  1,457,000                            0

              person

              Domestic

ZhuYe        Nature              0.22%  1,131,945                            0

              person

              Domestic

LiZengmao    Nature              0.20%  1,038,800                            0

              person

              Domestic

HongFan      Nature              0.20%  1,028,900                            0

              person

                        ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.isawholly-ownedsubsidiaryofShenzhen

Relatedoracting-in-concert  InvestmentHoldingCo.,Ltd.andapersontakingconcertedaction.Exceptthis,theCompanydid
partiesamongshareholders  notwhetherthereisrelationshipbetweenthetoptenshareholdersholdingnon-restrictednegotiable
above                    sharesandbetweenthetoptenshareholdersholdingnon-restrictednegotiablesharesandthetop10
                        shareholdersorwhethertheyarepersonstakingconcertedactiondefinedinRegulationson

                        DisclosureofInformationaboutShareholdingofShareholdersofListedCompanies.

                        TheCompanyShareholderFujiangBairuiJiayuan,AssetManagementCo.,Ltd.－BairuiJiayuan

Explanationonshareholders  GrowthIFundholds3,954,735sharesoftheCompanythroughstockaccountwithcredit
participatinginthemargin  transaction;TheCompanyShareholderLiSongqiangholds2,872,653sharesoftheCompany
tradingbusiness(ifany)    throughstockaccountwithcredittransaction;TheCompanyShareholderZhuYeholds1,031,945

                        sharesoftheCompanythroughstockaccountwithcredittransaction.

2.Numberofthepreferenceshareholdersandtheshareholdingsofthetop10ofthem
□Applicable√Notapplicable
Nopreferenceshareholdersinthereportingperiod

3.RelationshipbetweentheCompanyanditsactualcontrollerintheformofdiagram
5.Corporationbonds
CorporateBondsIndicatebytickmarketwhethertheCompanyhasanycorporatebondspubliclyofferedandlistedonthestockexchange,whichwereunduebeforethedateofthisReport’sapprovalorwereduebutcouldnotberedeemedinfull.
No
III.DiscussionandAnalysisoftheManagement
1.BusinessOperationsummaryinthereportingperiod
Whetherthecompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustry
No

    In2018,theeconomicenvironmentchangewasintensified,andtheCompanywasaffectedbyunfavorablefactorssuchasSino-UStradefriction,largeexchangeratefluctuations,intensifiedmarketcompetition,highproductionunitconsumption,poorproductstructureoptimization,andtheoverallincreaseinproductionfactorsprices.Thebusinesssituationofpolarizerproductionandoperationwasnotuptoexpectations.

    In2018,theCompanyrealizedtheoperatingincomeofRMB1,272.3568million,adecreaseof13.77%overthesameperiodofthepreviousyear;thetotalprofitrecordedalossofRMB53.4231million,adecreaseof162.89%overthesameperiodofthepreviousyear;thenetprofitattributabletoownersoftheparentcompanyrecordedalossofRMB22.9806million,aYOYdeclineof143.54%.ThemainreasonsfortheCompany'slosseswere:first,duetotheadverseimpactofthedeclineinthepriceofthedisplayterminalduringthereportingperiod,thesalespriceofpolarizerforTVproductsoftheCompanydeclined;secondly,theprojectofLine6wasstillintheclimbingstageaftertheprojectwasputintoproduction,resultinginafixedcostoftheproductunitwasrelativelyhigh,third,inthereportingperiod,duetothedeclineoftheexchangerateofRMBagainsttheJapaneseyen,thepurchasecostofimportedrawmaterialsincreased,andtheexchangelossincreased;fourth,duetothedeclineinthesellingpriceoftheproductsduringthereportingperiod,theprovisionforinventoryfallingpriceincreased.

    Facingtheincreasinglysevereoveralloperationsituationofpolarizerandtheweakeningglobaleconomicsituationunderthetradeprotectionism,theCompanyfaceduptothedifficulties,overcamethedifficulties,gavefullplaytoitsinternaladvantages,deepenedandpromotedthemixed-ownershipreformwork,andlaidasolidfoundationforfurthertransformationanddevelopmentoftheCompany.Itoptimizedtheproductstructureoftraditionaltextilebusinesstoturnlossintoprofit;strengthenedthemanagementservicesofproperty-kindenterprisesandimprovedtheefficiency.


  Reviewofthecompany'skeyworkscarriedoutin2018asfollows:

  (I)  Polarizer'soperatingcapabilityhasbeenimproved
In2018,basedonmarket-oriented,theCompanyoptimizedtheproductstructure,expandedthepanelproducttohigh-value-addedorderssuchaslarge-sizeandthin-formproduct,andshiftedtheemphasisfromsalesvolumetosalesprofit,speduptheintroductionandstart-upofnewprojects.Meanwhile,ithadcomprehensivelycarriedouthigh-profitmachineverificationwork;second,focusingontechnologyresearchanddevelopmentandtheoverallstrategicdeployment,itincreasedtheresearchanddevelopmenteffortsinnewproducts,newmaterials,productionprocesses,etc.;third,optimizedtheproductionprocesses,improvedthequalitycontrol,andcontrolledtheinventoryquantitybyreducingproductqualityabnormalityandimprovingtheinventoryturnover;fourth,activelystrivedforscientificresearchpolicysupportfunds.In2018,atotalof50.84millionyuanofpolicyfundingsubsidieswasattained.

    Furthermore,theCompanyincreasedresearch&developmentofindependentintellectualpropertyrights.Throughouttheyear,theCompanyappliedfor10patents(including4inventionpatentsand6utilitymodelpatents)andimported1PCTpatent(utilitymodelpatent)intoSouthKoreaandJapanrespectively.TillDecember31,2018,theCompanyappliedfor91patentsintotal(66licensed),including23nationalinventionpatents(8licensed),61nationalutilitymodelpatents(54licensed),1internationalinventionpatent(0licensed)and6internationalutilitymodelpatents(4licensed).TheCompanystudiedandformulated4nationalstandardsand2industrialstandardswhichhavebeenadoptedandputintopractice.TheCompanyhastwotechnicalplatforms--"ShenzhenPolarizingMaterialsandTechnologyEngineeringLab"and"MunicipalResearchandDevelopmentCenter"wherefocusisgiventoresearch&developmentandindustrializationofkeyLCDpolarizerproductiontechniques,research&developmentandindustrializationofnewOLEDpolarizerproductsandresearchonlocalizationofpolarizerproductionmaterials.TheCompanyraiseditsresearch&developmentstandardinallrespectsbytakingmeasuresofintroducingalltypesofprecisiontestingequipment,improvingmethodsofpreliminaryandpilottestsandresearch&developmentincentivesystemandbuildingan"industry-university-research"integratedinnovationplatformamongothers.

    (II)Enhancementofmanagementservicesofpropertymanagementandtextileenterprisesforthesakeofbenefitincrease

    In2018,theCompanyfurtherreinforcedallthemanagementserviceideasofpropertymanagemententerprises,handledalltheadverseeffectscausedbyeconomicdownturnandmarketdepressiontopropertyleasingandmanagementinascientificway,faceduptodifficultywithcourage,madegreateffortsinleasingoperationtopromoteservicesandstabilizecustomers,carriedoutstandardizedmanagement,enhancedcorrectionofpotentialsafetythreats,elaboratedmanagementprocess,lowereddisbursementandenhancedefficiencytoincreasetherentalincome.

    Confrontedthedepressioninthetraditionaltextileindustry,theCompanytooktheinitiativetoovercomeeffectsofsuchunfavorablefactorsaSARiseinthecostofrawmaterialsandlaborandgaveprioritytoorderproductionthroughoptimizationofcustomerandproductstructuretobringthemoney-losingtextilebusinessintotheblack.

    （III)CompletionofconstructionandoptimizationofLine6Projectasscheduled

    Inviewofacertaindeclineinthepriceof32-inchproductsatthepolarizermarketattheendof2017,theCompanyoptimizedandpromotedthemainequipmentintheLine6attheendof2017,whereinthefullaccelerationofthefirstthreeprocessesstoodout,fillingthegapoftheCompanyinshapepolarizerprocessing.InJune2018,theCompanycompletedtheoptimization,promotionandtestrunoftheLine6Projectthatwastransferredtofixedassetsandembarkedonamassproductionstageinthethirdquarter.

    (IV)FacilitatedconstructionofjumboTVpolarizerindustrializationprojectwitheffort

    In2018,theCompanytooktheinitiativetoboostconstructionofthejumboTVpolarizerindustrializationproject(Line7).Inthefirstplace,projectapproval,feasibilitystudyandexaminationandapprovalwerecompleted.AdoptedattheGeneralMeetingofShareholdersinAugust2018throughdeliberation,theLine7ProjectdulyembarkedonitsconstructioninSeptember2018andpassedtheEIAinDecember2018.Secondly,theplantandequipmentdesignwasoptimizedintheLine7ProjectonthegroundofasignificanttechnicalsupportgivenbyNittoDenkointermsofproductiontechnology,plantdesign,andAGVpathoptimizationamongothers.Thirdly,abusinessunitwassetupfortheLine7Projectwhereindependentaccountingandbusinessmanagementwereimplementedtopushforwardprojectconstructionwithalltheefforts.

    （V）Tightenedsafetyandenvironmentalprotectionandsafeguardingofenterpriseharmonyandstability
    In2018,theCompanykeptgivingaprioritytosafeandenvironment-friendlyproductionbyadheringtothephilosophyofsafetyoverridinganythingelse.Asalways,theCompanyhighlightedthesafetyandenvironmentalprotectionwork.Throughouttheyear,theCompanyinvestedRMB18.71millioninaddingandmaintainingsafe
andenvironment-friendlyequipment,predominantlycompletedupgradingandtransformationthewastewaterprocessingsystemandupdatingtheRTOwastegasprocessingequipmentintheLine6andupdatingandeliminatinghighliquorratiodyingequipmentforBeautyCenturyamongotherwork,andfulfilled100%up-to-standardwastewaterandgasemission,0more-than-averageenvironmentalpollutionaccidentand0environmentalprotectionirregularitytopracticallyperformitssocialresponsibility.

    （VI)ConstantreinforcementoffoundationandstrengtheningofprimaryPartybuildingwork

    Onthegroundofimplementingandputtingintopracticethespiritofthe19thNationalCongressoftheCommunistPartyofChina,theCompanythoroughlycarriedouttheParty'snewdeploymentanddemandforseeingPartyself-governanceexercisedfullyandwithrigor,carefullyfulfilledtheentityresponsibilityofthePartyCommitteeandsupervisionresponsibilityoftheDisciplinaryInspectionCommission,reinforcedthesystemof"oneposttakingadualresponsibility",andimplementedthePartyBuildingResponsibilityStatementtoguaranteethatthePartybuildingworkwasputintopractice;itpushedforwardPartybuildingsystembuildingandraisedthestandardofthenormalizationofthePartybuildingworkstepbystep;ittooktheinitiativetoexploreanddrivethePartybuildingworkinenterprisesinvolvedinmixed-ownershipreformandguidedcorporatebusinessdevelopmentbyPartybuildingwork.
2.Materialchangeinprincipalactivitiesduringthereportingperiod
□Yes√No
3.Productsaccountingforover10%ofrevenueorprofitfromprincipalactivitiesoftheCompany
√Applicable□Notapplicable

                                                                                              InRMB

                                                            Increase/decreaseIncrease/decreaseIncrease/decrease
                                                Grossprofit  ofrevenueinthe  ofbusinesscost  ofgrossprofit
    Name        Turnover    Operationcost      rate(%)      sameperiodof  overthesame  rateoverthesame
                                                              theprevious      periodof      periodofthe

                                                                year(%)    previousyear(%)previousyear(%)
Leaseand

Managementof    98,327,018.46  42,185,793.46        73.72%          4.85%        15.84%          2.05%
Property

Textile            47,188,632.17      687,575.76        12.92%        14.33%        140.62%          3.24%
Polarizersheet    832,221,198.11  -113,277,631.27          4.07%        -2.27%      -522.35%        -5.29%
Trade            288,744,806.35  15,542,225.95          5.97%        -38.13%        103.04%          4.25%
4.Seasonalorcyclicaloperationsrequiringspecialattention
□Yes√No
5.SignificantYoYchangesintheoperatingrevenues,operatingcostsandnetprofitsattributabletothecommonshareholdersortheircomposition
√Applicable□Notapplicable
Duringthereportingperiod,thetotalnetprofitattributabletoordinaryshareholdersofthelistedcompanyis
RMB-22,980,624.93,whichwasmainlyduetothefollowingfactors:1.Theendsalesofdisplayershrankandthesalespricefell,resultingintheCompany'spolarizerproducts’salesdecline;2.ThePhaseIIofLine6projectofTFT-LCDwasstillintheclimbingstageaftertheprojectwasputintoproduction,resultinginahigherfixedcostoftheproductunit;3.duringthereportingperiod,theRMBexchangeratefell,andthepurchasecostofimportedrawmaterialsincreased,resultinginanincreaseinthevariablecostoftheproductunit,andtheexchangelossincreased;4.duringthereportingperiod,it’sexpectedthatthedeclineinproductpricesmaycontinue,andtheprovisionforinventoryfallingpricewasincreasedduetotheprincipleofprudence.

6.Suspensionintradingordelisting
□Applicable√  Notapplicable
7.Eventsrelatingtothefinancialreport
(1)Particularsaboutthechangesinaspectofaccountingpolicy,estimatesandcalculationmethodcomparedwiththefinancialreportoflastyear
□Applicable√  Notapplicable
ThereCompanyhasnoaccountingpolicy,estimatesandcalculationmethodchangedintheperiod
(2)Majoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatement
□Applicable√Notapplicable
NomajoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatementfortheCompanyintheperiod
(3)Comparewithlastyear’sfinancialreport;explainchangesinconsolidationstatement’sscope
□Applicable√  Notapplicable
Nochangesinconsolidationstatementscopeinthereportingperiod

                                        TheDirectorofBoardofShenzhenTextile(Holdings)Co.,Ltd.
                                                                                April27,2019