Shenzhen Textile (Holdings) Co., Ltd.

The Semi-Annual Financial Report 2022

August 2022

I. Audit report

Has this semi-annual report been audited?

□ Yes √ No

The semi-annual financial report has not been audited.II. Financial StatementsStatement in Financial Notes are carried in RMB/CNY

1. Consolidated balance sheet

Prepared by: Shenzhen Textile (Holdings) Co., Ltd.

In RMB

Legal Representative:Yin KefeiPerson-in-charge of the accounting work：He FeiPerson-in -charge of the accounting organ：Zhu Jingjing

2.Parent Company Balance Sheet

In RMB

3.Consolidated Income statement

In RMB

The current business combination under common control, the net profits of the combined party before achievednet profit of RMB 0.00, last period the combined party realized RMB0.00.Legal Representative: Yin KefeiPerson-in-charge of the accounting work：He FeiPerson-in -charge of the accounting organ：Zhu Jingjing

4. Income statement of the Parent Company

In RMB

5. Consolidated Cash flow statement

In RMB

6. Cash Flow Statement of the Parent Company

In RMB

7. Consolidated Statement on Change in Owners’ Equity

Amount in this period

In RMB

Amount in last year

In RMB

8.Statement of change in owner’s Equity of the Parent Company

Amount in this period

In RMB

Amount in last year

In RMB

III. Basic Information of the CompanyShenzhen Textile (Group) Co., Ltd. (hereinafter referred to as "Company" or "the Company") is a joint-stockcompany registered in Guangdong Province with a registered capital of RMB 506.521849 million and a unifiedsocial credit code of 91440300192173749Y. The Company has publicly issued RMB common shares (A shares)and domestic listed foreign shares (B shares) to the public at home and abroad, and listed and traded them. TheCompany is headquartered address are 6/F,Shenfang Building, No.3 Huaqiang Road. North, Futian District,Shenzhen.The company was previously the Shenzhen Textile Industry Company, on April 13, 1994, approved by theLetter(1994)No.15 issued by Shenzhen Municipal People's Government, the Company was restructured andnamed as Shenzhen Textile (Group) Co., Ltd. ，As of June 30, 2022, the Company has issued a total of506,521,849.00 shares.

The Company has established the corporate governance structure of General Meeting of Shareholders,Board of Directors and Board of Supervisors, and currently has the Board Office, Office, StrategicDevelopment Department, Operation and Management Department, Finance Department, Audit Department,Human Resources Department and other departments.The Company is mainly engaged in high-tech industry focusing on R&D, production and marketing of polarizersfor liquid crystal display, management of properties in bustling business districts of Shenzhen and reserved high-

class textile and garment business.The financial statements have been authorized for issuance of the 15

thmeeting of the 8th Board of Directors ofthe Group on August 23,2022.I.Scope of consolidated financial statementsAs of June 30, 2022, A total of 8 subsidiaries of the Company are included in the scope of consolidation. Fordetails, please refer to Note IX "Rights and Interests in Other Subjects".IV.Basis for the preparation of financial statements

（1）Basis for the preparation

The financial statements are prepared in accordance with the Accounting Standards for Business Enterprisespromulgated by the Ministry of Finance and its application guidelines, interpretations and other relevantprovisions (collectively referred to as the "Accounting Standards for Business Enterprises"). In addition, theCompany also disclosed relevant financial information in accordance with the Rules No.15 for the InformationDisclosure and Compilation of Companies Offering Securities Public Issuance - General Provisions onFinancial Report (revised in 2014) issued by China Securities Regulatory Commission.

The financial statements are presented on the basis of going concern.The accounting of the Company is based on accrual basis. Except for some financial instruments, thefinancial statements are based on historical costs. In case of asset impairment, impairment provision shall bemade in accordance with relevant regulations.

(2)Continuation

There will be no such events or situations in the 12 months from the end of the reporting period that will causematerial doubts as to the continuation capability of the Company.V. Important accounting policies and estimationsSpecific accounting policies and accounting estimates tips:

According to its own production and operation characteristics, the company determines the depreciation offixed assets, intangible assets amortization and income recognition policies, For specific accounting policies,see "10 Financial Report 5, Important Accounting Policies and Accounting Estimates 24, Fixed Assets", " 10Financial Report 5, Important Accounting Policies and Accounting Estimates 30, Intangible Assets", "Section10 Financial Report 5, Important Accounting Policies and Accounting Estimates 39, Revenue".

1. Statement on complying with corporate accounting standards

This financial statement conforms to the requirements of Accounting Standards for Business Enterprises, andtruly and completely reflects the combination and financial status of the Company on June 30, 2022, as well asthe combination and operating results and cash flow of the Company.

2.Fiscal Year

The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as thefiscal year.

3. Operating cycle

The operating cycle of the Company is 12 months.

4. Accounting standard money

The Company and its domestic subsidiaries use RMB as their bookkeeping base currency. The overseassubsidiaries of the Company determine RMB as their bookkeeping base currency according to the currency inthe main economic environment in which they operate. The currency used by the Company in preparing thefinancial statements is RMB.

5. Accounting process method of enterprise consolidation under same and different controlling.

（1）Enterprise merger under same control：

For business combination under the same control, the assets and liabilities of the combined party acquiredby the merging party during the combination shall be measured according to the book value of the combinedparty in the consolidated financial statements of the final controlling party on the combination date, except forthe adjustment due to different accounting policies. The difference between the book value of the combinationconsideration and the book value of the net assets obtained in the combination adjusts the capital reserve. If thecapital reserve is insufficient to offset, the retained earnings will be adjusted.Business combination under the same control shall be achieved step by step through multiple transactionsIn individual financial statements, the share of the book value of the net assets of the combined party in theconsolidated financial statements of the ultimate controlling party shall be taken as the initial investment cost ofthe investment on the combination day calculated by the shareholding ratio on the combination day; Adjust thecapital reserve for the difference between the initial investment cost and the book value of the investment heldbefore the combination plus the book value of the consideration paid on the new day of the combination. If thecapital reserve is insufficient to offset, adjust the retained earnings.In the consolidated financial statements, the assets and liabilities of the combined party acquired by themerging party in the combination shall be measured according to the book value in the consolidated financialstatements of the ultimate controlling party on the combination date, except for the adjustment due to differentaccounting policies; The difference between the book value of the investment held before the combination plusthe book value of the consideration paid on the new day of the combination and the book value of the net assetsobtained during the combination will be adjusted for capital reserve. If the capital reserve is insufficient tooffset, the retained earnings will be adjusted. For the long-term equity investment held by the merging partybefore obtaining the control right of the combined party, the relevant profits and losses, other comprehensiveincome and other changes in owner's equity have been recognized from the date of obtaining the original equityand the date when the merging party and the combined party are under the same final control to the combinationdate, and the initial retained earnings or current profits and losses during the comparative report period shall beoffset respectively.

(2) Business combination involving entities not under common control

For business combination not under the same control, the combination cost refers to the assets paid,liabilities incurred or assumed, and fair value of the issued equity securities in order to gain control over theacquiree on the acquisition date. On the acquisition date, the acquired assets, liabilities and contingent liabilitiesof the acquiree are recognized at fair value.

The difference between the combination cost and the fair value share of identifiable net assets acquired inthe combination is recognized as goodwill, and the accumulated impairment provision is deducted by cost forsubsequent measurement; The difference between the combination cost and the fair value share of identifiablenet assets acquired by the acquiree in the combination shall be recorded into the current profits and losses afterreview.

Business combination under the same control shall be achieved step by step through multiple transactions

In individual financial statements, the sum of the book value of the equity investment held by the acquiree

before the acquisition date and the new investment cost on the acquisition date is taken as the initial investmentcost of the investment. Other comprehensive income recognized by the equity investment held before theacquisition date due to accounting by the equity method is not treated on the acquisition date, and accountingtreatment is carried out on the same basis as that of the investee's direct disposal of related assets or liabilities;The owner's equity recognized due to the change of owner's equity of the investee except net profit and loss,other comprehensive income and profit distribution shall be transferred to the current profit and loss during thedisposal period when the investment is disposed. If the equity investment held before the acquisition date ismeasured by fair value, the accumulated changes in fair value originally included in other comprehensiveincome will be transferred to the current profits and losses when accounting by cost method.

In the consolidated financial statements, the consolidated cost is the sum of the consideration paid on theacquisition date and the fair value of the equity of the acquiree held before the acquisition date on theacquisition date. The equity of the acquiree held before the acquisition date shall be re-measured according tothe fair value of the equity on the acquisition date, and the difference between the fair value and its book valueshall be included in the current income; Equity of the acquiree held before the acquisition date involves othercomprehensive income, and other changes in owner's equity are converted into current income on theacquisition date, except for other comprehensive income arising from the remeasurement of net liabilities orchanges in net assets of the set income plan by the investee.

(3) Treatment of transaction costs in business combination

Intermediary expenses such as auditing, legal services, evaluation and consultation, and other relatedmanagement expenses incurred for business combination are included in the current profits and losses whenthey occur. Transaction costs of equity securities or debt securities issued as combination consideration areincluded in the initial recognition amount of equity securities or debt securities.6 Compilation method of consolidated financial statements

(1)The scope of consolidation

The consolidation scope of consolidated financial statements is determined on the basis of control. Controlrefers to that the company has the power over the investee, enjoys variable returns by participating in the relatedactivities of the investee, and has the ability to use the power over the investee to affect its return amount.Subsidiaries refer to subjects controlled by the Company (including enterprises, divisible parts of investee,structured subjects, etc.).

The consolidation scope of consolidated financial statements is determined on the basis of control. Controlrefers to that the company has the power over the investee, enjoys variable returns by participating in the relatedactivities of the investee, and has the ability to use the power over the investee to affect its return amount.Subsidiaries refer to subjects controlled by the Company (including enterprises, divisible parts of investee,structured subjects, etc.).

(2) Compilation method of consolidated financial statements

The consolidated financial statements are based on the financial statements of the Company and itssubsidiaries, and are prepared by the Company according to other relevant information. When preparing theconsolidated financial statements, the accounting policies and accounting period requirements of the Companyand its subsidiaries are consistent, and major transactions and current balances between companies are offset.During the reporting period, the subsidiaries and businesses increased due to the business combination under thesame control shall be deemed to be included in the consolidation scope of the Company from the date whenthey are controlled by the ultimate controller, and their operating results and cash flows from the date when theyare controlled by the ultimate controller shall be included in the consolidated income statement and the

consolidated cash flow statement respectively.

During the reporting period, the income, expenses and profits of subsidiaries and businesses increasedfrom the acquisition date to the end of the reporting period due to business combination not under the samecontrol during the reporting period are included in the consolidated income statement, and their cash flows areincluded in the consolidated cash flow statement.The part of shareholders' equity of subsidiaries that is not owned by the Company is listed separately asminority shareholders' equity in the consolidated balance sheet; The share of minority shareholders' equity inthe current net profit and loss of subsidiaries is listed as "minority shareholders' profit and loss" under the netprofit item in the consolidated income statement. If the loss of subsidiary shared by minority shareholdersexceeds the share enjoyed by minority shareholders in the initial owner's equity of such subsidiary, the balancestill offsets minority shareholders' equity.

(3) Acquisition of minority shareholders' equity of subsidiaries

The capital reserve in the consolidated balance sheet shall be adjusted for the difference between the newlyacquired long-term equity investment cost due to the acquisition of minority shares and the share of net assetscontinuously calculated by subsidiaries from the acquisition date or combination date, and the differencebetween the disposal price obtained from partial disposal of equity investment in subsidiaries without losingcontrol and the share of net assets continuously calculated by subsidiaries from the acquisition date orcombination date corresponding to the disposal of long-term equity investment. If the capital reserve isinsufficient to offset, the retained earnings shall be adjusted.

(4) Treatment of losing control over subsidiaries

If the control over the original subsidiary is lost due to the disposal of part of the equity investment or otherreasons, the remaining equity shall be re-measured according to its fair value on the date of loss of control; Thesum of the consideration obtained from the disposal of equity and the fair value of remaining equity, minus thesum of the share of the original subsidiary's book value of net assets calculated continuously from theacquisition date and goodwill calculated according to the original shareholding ratio, and the difference formedis included in the investment income of the current period of loss of control.

Other comprehensive income related to the original subsidiary's equity investment will be transferred to thecurrent profits and losses when the control right is lost, except for other comprehensive income generated by theinvestee's remeasurement of the net liabilities or changes in net assets of the set income plan.

7.Joint venture arrangements classification and Co-operation accounting treatment

Joint venture arrangement refers to an arrangement under the joint control of two or more participants. Thejoint venture arrangement of the Company is divided into joint operation and joint venture.

(1) Joint operation

Joint operation refers to the joint venture arrangement in which the Company is entitled to the assetsrelated to the arrangement and bears the liabilities related to the arrangement.

The Company recognizes the following items related to the share of interests in joint operation, and carriesout accounting treatment in accordance with the relevant accounting standards for business enterprises:

A. Recognize assets held separately and assets held jointly according to their shares;

B. Recognize the liabilities undertaken separately, and recognize the liabilities jointly undertakenaccording to their shares;

C. Recognize the income generated from the sale of its share of joint operating output;

D. Recognize the income generated by the sale of output from joint operation according to their shares;

E. Recognize the expenses incurred separately, and recognize the expenses incurred in joint operationaccording to their shares.

(2) Joint venture

A joint venture refers to a joint venture arrangement in which the Company only has rights to the net assetsof the arrangement.The Company shall carry out accounting treatment on the investment of the joint venture in accordancewith the provisions on accounting of long-term equity investment by the equity method.

8.Recognition Standard of Cash & Cash Equivalents

Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents referto investments held by the Company with short term, strong liquidity, easy conversion into known cash andlittle risk of value change.

9.Foreign currency transaction

In case of foreign currency business of the Company, the exchange rate determined by a systematic andreasonable method which is similar to the spot exchange rate on the transaction date shall be used to convert itinto the bookkeeping base currency amount.

Balance sheet date: foreign currency monetary items shall be converted at the spot exchange rate on thebalance sheet date. Exchange differences arising from the difference between the spot exchange rate on thebalance sheet date and the spot exchange rate at the time of initial recognition or the previous balance sheet dateare included in the current profits and losses; For foreign currency non-monetary items measured at historicalcost, the spot exchange rate on the transaction date is still adopted; Foreign currency non-monetary itemsmeasured at fair value are converted at the spot exchange rate on the fair value determination date, and thedifference between the converted bookkeeping base currency amount and the original bookkeeping basecurrency amount is included in the current profits and losses.

10.Financial instruments

Financial instruments refer to contracts that form financial assets of one party and financial liabilities orequity instruments of other parties.

(1) Recognition and derecognition of financial instruments

When the Company becomes a party to a financial instrument contract, a financial asset or financialliability is recognized.

Financial assets that meet one of the following conditions shall be derecognized:

① Termination of the contractual right to receive cash flow from the financial asset;

② The financial asset has been transferred and the following conditions for derecognition of financial assettransfer are met.

If all or part of the current obligations of a financial liability have been discharged, the financial liability orpart of it shall be derecognized. If the Company (debtor) signs an agreement with the creditor to replace theexisting financial liabilities by assuming new financial liabilities, and the contract terms of the new financialliabilities are substantially different from those of the existing financial liabilities, the existing financialliabilities shall be derecognized and the new financial liabilities shall be recognized at the same time.

When trading the financial assets in a conventional way, accounting recognition and derecognition shall becarried out according to the trading day.

(2) Classification and measurement of financial assets

According to the business model of managing financial assets and the contractual cash flow characteristicsof financial assets, the Company divides financial assets into the following three categories: financial assets

measured at amortized cost, financial assets measured at fair value with changes included in othercomprehensive income, and financial assets measured at fair value with changes included in current profits andlosses.Financial assets measured at amortized costThe Company classifies the financial assets that meet the following conditions and are not designated to bemeasured at fair value with changes included in current profits and losses as financial assets measured atamortized cost:

? The Company's business model of managing such financial assets is to collect contract cash flow as the goal;? According to the contract terms of the financial asset, the cash flow generated on a specific date is only thepayment of principal and interest based on the unpaid principal amount.? After initial recognition, such financial assets are measured in amortized cost by the effective interest ratemethod. Gains or losses arising from financial assets measured in amortized cost that are not part of anyhedging relationship are included in current profits and losses when derecognition, amortization according tothe effective interest rate method, or impairment recognition.Financial assets measured at fair value and changes included in other comprehensive income

The Company classifies financial assets that meet the following conditions and are not designated to bemeasured at fair value with changes included in current profits and losses as financial assets measured at fairvalue with changes included in other comprehensive income:

? The company's business model of managing the financial assets aims at both collecting contract cash flow andselling the financial assets;? According to the contract terms of the financial asset, the cash flow generated on a specific date is only thepayment of principal and interest based on the unpaid principal amount.After initial recognition, the fair value of such financial assets is subsequently measured. Interest, impairmentlosses or gains and exchange gains and losses calculated by the effective interest rate method are included in thecurrent profits and losses, while other gains or losses are included in other comprehensive income. Upontermination of recognition, the accumulated gains or losses previously included in other comprehensive incomeshall be transferred out of other comprehensive income and included in current profits and losses.

Financial assets measured at fair value with changes included in current profits and losses

Except for the above financial assets measured at amortized cost and at fair value with changes included inother comprehensive income, the Company classifies all other financial assets as financial assets measured atfair value with changes included in current profits and losses. At the time of initial recognition, in order toeliminate or significantly reduce accounting mismatch, the Company irrevocably designated some financialassets that should have been measured at amortized cost or at fair value with changes included in othercomprehensive income as financial assets measured at fair value with changes included in current profits andlosses.

After initial recognition, the financial assets are subsequently measured at fair value, and the resultinggains or losses (including interest and dividend income) are included in the current profits and losses, unless thefinancial assets are part of the hedging relationship.

However, for non-trading equity instrument investments, the Company can irrevocably designate them asfinancial assets measured at fair value with changes included in other comprehensive income upon initialrecognition. The designation is made on the basis of a single investment, and the relevant investment conformsto the definition of equity instruments from the perspective of the issuer.

After initial recognition, the fair value of such financial assets is subsequently measured. Dividend incomethat meets the requirements is included in profit or loss, and other gains or losses and changes in fair value are

included in other comprehensive income. Upon termination of recognition, the accumulated gains or lossespreviously included in other comprehensive income shall be transferred out of other comprehensive income andincluded in retained income.The business model of managing financial asset refers to how the Company manages financial assets togenerate cash flow. The business model determines whether the cash flow of financial assets managed by theCompany comes from contract cash flow, sale of financial assets or both. The Company determines the businessmodel of managing financial assets based on objective facts and specific business objectives of managingfinancial assets decided by key management personnel.The Company evaluates the contractual cash flow characteristics of financial assets to determine whetherthe contractual cash flow generated by related financial assets on a specific date is only the payment of principaland interest based on the unpaid principal amount. Where, the principal refers to the fair value of financialassets at initial recognition; Interest includes consideration for the time value of money, credit risk related to theunpaid principal amount in a specific period, and other basic borrowing risks, costs and profits. In addition, theCompany evaluates the contract clauses that may cause changes in the time distribution or amount of cash flowof financial assets contracts to determine whether they meet the requirements of the above-mentioned contractcash flow characteristics.Only when the Company changes its business model for managing financial assets, all affected financialassets shall be reclassified on the first day of the first reporting period after the business model changes,otherwise, financial assets shall not be reclassified after initial recognition.Financial assets are measured at fair value upon initial recognition. For financial assets measured at fairvalue, whose changes are included in current profits and losses, relevant transaction costs are directly includedin current profits and losses; For other types of financial assets, relevant transaction costs are included in theinitial recognition amount. Accounts receivable arising from the sale of products or the provision of laborservices that do not include or take into account significant financing components are initially recognized by theCompany in accordance with the amount of consideration that the Company is expected to be entitled toreceive.

(3) Classification and measurement of financial liabilities

At initial recognition, the financial liabilities of the Company are classified into: financial liabilitiesmeasured at fair value with changes included in current profits and losses, and financial liabilities measured atamortized cost. For financial liabilities that are not classified as measured at fair value with changes included incurrent profits and losses, relevant transaction costs are included in their initial recognition amount.Financial liabilities measured at fair value with changes included in the current profits and lossesFinancial liabilities measured at fair value with changes included in current profits and losses includetransactional financial liabilities and financial liabilities designated at fair value at initial recognition withchanges included in current profits and losses. Such financial liabilities are subsequently measured according tofair value, and the gains or losses caused by changes in fair value and dividends and interest expenses related tosuch financial liabilities are included in current profits and losses.

Financial liabilities measured in amortized cost

Other financial liabilities are subsequently measured according to the amortized cost by the effectiveinterest rate method, and the gains or losses arising from derecognition or amortization are included in thecurrent profits and losses.

Distinction between financial liabilities and equity instruments

Financial liabilities refer to liabilities that meet one of the following conditions:

① Contract obligation to deliver cash or other financial assets to other parties.

② The contractual obligation to exchange financial assets or financial liabilities with other parties underpotential unfavorable conditions.

③ Non-derivative contracts that need to be settled or can be settled by the enterprise's own equityinstruments in the future, for which the enterprise will deliver a variable number of its own equity instrumentsaccording to this contract.

④ Derivative contracts that need to be settled or can be settled by the enterprise's own equity instrumentsin the future, except for derivative contracts that exchange a fixed amount of its own equity instruments for afixed amount of cash or other financial assets.

Equity instruments refer to contracts that can prove ownership of an enterprise's residual equity in assetsafter deducting all liabilities.

If the Company can't unconditionally avoid delivering cash or other financial assets to fulfill a contractualobligation, the contractual obligation meets the definition of financial liabilities.

If a financial instrument needs to be settled or can be settled by the Company's own equity instrument, itshall be considered whether its own equity instrument used to settle the instrument is a substitute for cash orother financial assets, or it is to enable the holder of such instrument to be entitled to the remaining equity in theassets after all liabilities are deducted by the issuer. In the former case, the instrument is the financial liability ofthe Company; In the latter case, the instrument is the equity instrument of the Company.

(4) Derivative financial instruments and embedded derivative instruments

Initially, it is measured at the fair value on the day when the derivative transaction contract is signed, andthen measured at its fair value. Derivative financial instruments with positive fair value are recognized as anasset, while those with negative fair value are regarded as an liability. Any gains or losses arising from changesin fair value that do not meet the requirements of hedge accounting are directly included in the current profitsand losses.

For mixed instruments including embedded derivative, if the main contract is financial assets, the relevantprovisions of financial asset classification shall apply to the mixed instruments as a whole. If the main contractis not a financial asset, and the mixed instrument is not measured at fair value with changes included in thecurrent profits and losses for accounting treatment, the embedded derivative is not closely related to the maincontract in terms of economic characteristics and risks, and has the same conditions as the embedded derivative,and if the independent instrument meets the definition of derivative, the embedded derivative is split from themixed instrument and treated as a separate derivative financial instrument. If the embedded derivative cannot beseparately measured at the time of acquisition or on the subsequent balance sheet date, the mixed instruments asa whole are designated as financial assets or financial liabilities measured at fair value with changes included inthe current profits and losses.

(5) Fair value of financial instruments

See Note III. 11 for the determination method of the fair value of financial assets and financial liabilities.

(6) Impairment of financial assets

Based on the expected credit loss, the Company will carry out impairment accounting treatment on thefollowing items and recognize the loss reserve:

① Financial assets measured at amortized cost;

② Receivables and debt investments measured at fair value and included in other comprehensive income;

③ Lease receivables;

④ Financial guarantee contracts (except those which are measured at fair value with changes included incurrent profits and losses, in which the transfer of financial assets does not meet the conditions forderecognition, or those formed by continuing to involve the transferred financial assets).

Measurement of expected credit lossExpected credit loss refers to the weighted average of the credit losses of financial instruments weighted bythe risk of default. Credit loss refers to the difference between the cash flow of all contracts discountedaccording to the original real interest rate and the expected cash flow of all contracts receivable according to thecontract, that is, the present value of all cash shortages.The Company takes into account reasonable and reliable information on historical events, current situationand future economic situation forecasts, and uses the risk of default as the weight to calculate the probabilityweighted amount of the present value of the difference between the cash flow receivable from the contract andthe cash flow expected to be received to recognize the expected credit loss.The Company separately measures the expected credit losses of financial instruments at different stages. Ifthe credit risk of financial instruments has not increased significantly since the initial recognition, it is in thefirst stage. The Company measures the loss reserve according to the expected credit loss in the next 12 months;If the credit risk of a financial instrument has increased significantly since its initial recognition but no creditimpairment has occurred, it is in the second stage. The Company measures the loss reserve according to theexpected credit loss of the instrument throughout the duration; If a financial instrument has suffered creditimpairment since its initial recognition, it is in the third stage. The Company measures the loss reserveaccording to the expected credit loss of the instrument throughout the duration.For financial instruments with low credit risk on the balance sheet date, the Company assumes that theircredit risk has not increased significantly since the initial recognition, and measures the loss reserve accordingto the expected credit loss in the next 12 months.

The expected credit loss in the whole duration refers to the expected credit loss caused by all possibledefault events in the whole expected duration of financial instruments. The expected credit loss in the next 12months refers to the expected credit loss caused by the financial instrument default event that may occur within12 months after the balance sheet date (or within the expected duration if the expected duration of the financialinstrument is less than 12 months), which is a part of the expected credit loss in the whole duration.

When measuring the expected credit loss, the longest period that the Company needs to consider is thelongest contract period during which the enterprise is subject to credit risk (including the option to renew thecontract).

For financial instruments in the first and second stages and with low credit risk, the Company calculatesinterest income based on the book balance before deducting impairment provisions and the actual interest rate.For financial instruments in the third stage, the interest income shall be calculated according to their bookbalance minus the amortized cost after impairment provision and the actual interest rate.

For notes receivable and accounts receivable, regardless of whether there is significant financingcomponent, the Company always measures the loss reserve according to the amount equivalent to the expectedcredit loss in the whole duration.

When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, theCompany divides the notes receivable and accounts receivable into portfolios according to the credit riskcharacteristics, calculates the expected credit loss on the basis of the combinations, and determines thecombination on the following basis:

A. Notes receivable

Notes receivable portfolio 1: bank acceptance bill

Notes receivable portfolio 2: commercial acceptance bill

B. Accounts receivable

Accounts receivable portfolio 1: polarizer sales receivable

Accounts receivable portfolio 2: textile and garment sales receivableAccounts receivable portfolio 3: operating funds receivable from self-own propertyAccounts receivable portfolio 4: other receivablesFor notes receivable divided into portfolios, the Company refers to the historical credit loss experience,and calculates the expected credit loss through the default risk exposure and the expected credit loss rate of thewhole duration based on the current situation and forecasts the future economic situation.For accounts receivable divided into combinations, the Company refers to the historical credit lossexperience, combines the current situation with the forecast of future economic situation, compiles acomparison table of aging/overdue days of accounts receivable and the expected credit loss rate for the wholeduration, and calculates the expected credit loss.Other receivablesThe Company classifies other receivables into several combinations according to the credit riskcharacteristics, and calculates the expected credit losses based on the portfolios. The basis for determining theportfolio is as follows:

Other receivables portfolio: aging portfolioFor other receivables classified as portfolios, the Company calculates the expected credit loss through thedefault risk exposure and the expected credit loss rate in the next 12 months or the whole duration.Debt investment and other debt investmentFor creditor's rights investment and other creditor's rights investment, the Company calculates the expectedcredit loss according to the nature of the investment, the counterparty and various types of risk exposure andbased on the expected credit loss rate in the next 12 months or the whole duration.Evaluation of significant increase in credit riskBy comparing the risk of default of financial instruments on the balance sheet date with the risk of defaulton the initial recognition date, the Company determines the relative change of default risk of financialinstruments in the expected duration, and evaluates whether the credit risk of financial instruments hasincreased significantly since initial recognition.When determining whether the credit risk has increased significantly since the initial recognition, thecompany considers to obtain reasonable and reliable information without unnecessary extra costs or efforts,including forward-looking information. Information considered by the Company includes:

? The debtor fails to pay the principal and interest according to the expiration date of the contract;? Serious deterioration of external or internal credit rating (if any) of financial instruments that has occurred or isexpected;? Serious deterioration of the debtor's operating results that has occurred or is expected;? Changes in existing or expected technology, market, economic or legal environment, and significant adverse

effects on the debtor's repayment ability of the Company.According to the nature of financial instruments, the Company assesses whether credit risks have increasedsignificantly on the basis of individual financial instruments or financial instrument portfolios. When evaluatingon the basis of financial instrument portfolio, the Company can classify financial instruments based on commoncredit risk characteristics, such as overdue information and credit risk rating.Financial assets with credit impairmentOn the balance sheet date, the Company evaluates whether the financial assets measured at amortized costand the creditor's rights investments measured at fair value with changes included in other comprehensiveincome have suffered credit impairment. When one or more events that adversely affect the expected futurecash flow of a financial asset occur, the financial asset becomes a financial asset with credit impairment.

Evidence of credit impairment of financial assets includes the following observable information:

? The issuer or debtor has major financial difficulties;? The debtor violates the contract, such as default or overdue payment of interest or principal;? The Company gives concessions that the debtor will not make under any other circumstances due to economicor contractual considerations related to the debtor's financial difficulties;? The debtor is likely to go bankrupt or undergo other financial restructuring;? The financial difficulties of the issuer or debtor cause the active market of the financial assets to disappear.

Presentation of expected credit loss provisionIn order to reflect the change of credit risk of financial instruments after initial recognition, the Companyre-measures the expected credit loss on each balance sheet date, and the resulting increase or reversal amount ofloss reserve shall be included in the current profits and losses as impairment losses or gains. For financial assetsmeasured in amortized cost, the loss reserve shall be offset against the book value of the financial assets listedin the balance sheet; For creditor's rights investments measured at fair value with changes included in othercomprehensive income, the Company recognizes its loss reserve in other comprehensive income, which doesnot offset the book value of the financial asset.Cancel after verificationIf the Company no longer reasonably expects the contract cash flow of financial assets to be fully orpartially recovered, it will directly write down the book balance of the financial assets. This write-downconstitutes the derecognition of related financial assets. It usually happens when the Company determines thatthe debtor has no assets or income sources to generate enough cash flow to repay the amount to be writtendown. However, according to the Company's procedures for recovering the due amount, the written-downfinancial assets may still be affected by the implementation activities.

If the written-down financial assets are recovered later, they will be included in profits and losses of thecurrent recovery period as the reversal of impairment losses.

(7) Transfer of financial assets

Transfer of financial assets refers to the transfer or delivery of financial assets to another party (transferee)other than the issuer of the financial assets.

If the company has transferred almost all risks and rewards in the ownership of the financial asset to thetransferee, the recognition of the financial asset shall be terminated; If almost all risks and rewards on theownership of a financial asset are retained, the financial asset shall not be derecognized.

If the Company has neither transferred nor retained almost all risks and rewards in the ownership offinancial assets, it shall be dealt with as follows: if the control of the financial assets is abandoned, the financialassets shall be derecognized and the resulting assets and liabilities shall be recognized; If the control of thefinancial assets is not abandoned, the relevant financial assets shall be recognized according to the extent oftheir continued involvement in the transferred financial assets, and the relevant liabilities shall be recognizedaccordingly.

(8) Offset of financial assets and financial liabilities

When the Company has the legal right to offset the recognized financial assets and financial liabilities,which can be enforced at present, and the Company plans to settle by net amount or at the same time realizesuch financial assets and pay off such financial liabilities, the financial assets and financial liabilities are listedin the balance sheet with the amount after offset. In addition, financial assets and financial liabilities are listedseparately in the balance sheet and will not be offset against each other.

11. Notes receivable

For notes receivable and accounts receivable, regardless of whether there is significant financing component,the Company always measures the loss reserve according to the amount equivalent to the expected credit loss inthe whole duration.When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, theCompany divides the notes receivable and accounts receivable into portfolios according to the credit riskcharacteristics, calculates the expected credit loss on the basis of the combinations, and determines thecombination on the following basis:

Notes receivable portfolio 1: bank acceptance bill

Notes receivable portfolio 2: commercial acceptance bill

For notes receivable divided into portfolios, the Company refers to the historical credit loss experience, andcalculates the expected credit loss through the default risk exposure and the expected credit loss rate of the wholeduration based on the current situation and forecasts the future economic situation.

12. Accounts receivable

For notes receivable and accounts receivable, regardless of whether there is significant financing component,the Company always measures the loss reserve according to the amount equivalent to the expected credit loss inthe whole duration.

When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, theCompany divides the notes receivable and accounts receivable into portfolios according to the credit riskcharacteristics, calculates the expected credit loss on the basis of the combinations, and determines thecombination on the following basis:

Accounts receivable portfolio 1: polarizer sales receivable

Accounts receivable portfolio 2: textile and garment sales receivable

Accounts receivable portfolio 3: operating funds receivable from self-own property

Accounts receivable portfolio 4: other receivablesFor accounts receivable divided into combinations, the Company refers to the historical credit loss experience,combines the current situation with the forecast of future economic situation, compiles a comparison table ofaging/overdue days of accounts receivable and the expected credit loss rate for the whole duration, and calculatesthe expected credit loss.

13. Receivable financing

For bills receivable and accounts receivable classified as those measured at fair value and whose changesare included in other comprehensive income, the portion with self-financing period within one year (includingone year) is listed as receivables financing; If the period of self-acceptance is more than one year, it shall belisted as other creditor's rights investment. For relevant accounting policies, please refer to Note V, (10)"Financial Instruments" and Note V, (10) "Impairment of Financial instruments ".

14.Other account receivable

Determination method and accounting treatment method of expected credit loss of other receivables

The Company divides the other receivables into several portfolio according to the credit risk characteristics,and calculates the expected credit losses on the basis of determining the portfolio as follows:

Other receivables portfolio: age portfolio:

For accounts receivable divided into combinations, the Company refers to the historical credit loss experience,combines the current situation with the forecast of future economic situation, compiles a comparison table of

aging/overdue days of accounts receivable and the expected credit loss rate for the whole duration, and calculatesthe expected credit loss.

15.Inventory

（1）Investories class

The Company's inventory includes raw materials, in-process products, low-value consumables, packagingmaterials, inventory goods, and issued goods.

(2) Pricing method of issued inventory

The Company's inventory is priced at the actual cost when it is acquired. The weighted average method isadopted when raw materials and inventory goods are issued.

(3) Determination basis of net realizable value of inventory and accrual method of inventory depreciationreserve

The net realizable value of inventory is the estimated selling price of inventory minus the estimated coststo be incurred upon completion, estimated sales expenses and related taxes. For determination of the netrealizable value of inventories, the solid evidence shall serve as the basis, and the purpose of holdinginventories and the influence of events after the balance sheet date shall be considered.

On the balance sheet date, if the inventory cost is higher than its net realizable value, inventorydepreciation reserve shall be made. The Company usually accrues the inventory depreciation reserve accordingto individual inventory items. On the balance sheet date, if the influencing factors of previous inventory valuewritten down have disappeared, the inventory depreciation reserve will be returned within the originally accruedamount.

(4) Inventory system of inventory

Perpetual inventory system is adopted for the Company's inventory system.

(5) Amortization method of low-value consumables and packaging materials

Low-value consumables and packaging materials of the Company are amortized by one-time write-offmethod.

16.Contract assets

The Company lists the customer's unpaid contract consideration for which the Company has fulfilled itsperformance obligations according to the contract, and which is not the right to collect money from customersunconditionally (that is, only depending on the passage of time) as a contract asset in the balance sheet. Contractassets and liabilities under the same contract are listed in net amount, while contract assets and liabilities underdifferent contracts are not offset.

17.Contract Cost

Contract costs include incremental costs incurred for obtaining contracts and contract performance costs.

The incremental cost incurred for obtaining the contract refers to the cost that the Company will not incurwithout obtaining the contract (such as sales commission, etc.). If the cost is expected to be recovered, theCompany will recognize it as the contract acquisition cost as an asset. Other expenses incurred by the Company toobtain the contract except the incremental cost expected to be recovered are included in the current profits andlosses when incurred.

If the cost incurred for the performance of the contract does not fall within the scope of other accountingstandards for enterprises such as inventory and meets the following conditions at the same time, the Company willrecognize it as the contract performance cost as an asset:

① Such cost is directly related to a current or expected contract, including direct labor, direct materials,manufacturing expenses (or similar expenses), costs clearly borne by the customer, and other costs incurred onlydue to this contract;

② Such cost increases the resources of the Company for fulfilling its performance obligations in the future;

③ The cost is expected to be recovered.

Assets recognized by contract acquisition cost and assets recognized by contract performance cost(hereinafter referred to as "Assets Related to Contract Cost") shall be amortized on the same basis as the revenuerecognition of goods or services related to the assets, and shall be included in current profits and losses.

When the book value of the assets related to the contract cost is higher than the difference between thefollowing two items, the Company will accrue impairment provision of the excess and recognize it as the assetimpairment loss:

① The remaining consideration expected to be obtained by the Company due to the transfer of goods orservices related to the asset;

② The estimated cost to be incurred for transferring the related goods or services.

The contract performance cost recognized as an asset shall be amortized for no more than one year or onenormal business cycle at the time of initial recognition, which shall be listed in "Inventory", and the amortizationperiod for more than one year or one normal business cycle at the time of initial recognition shall be listed in"Other Non-current Assets".

The contract acquisition cost recognized as an asset shall be amortized for no more than one year or onenormal business cycle at initial recognition, and shall be listed in "Other Current Assets". The amortization periodfor initial recognition shall exceed one year or one normal business cycle, and shall be listed in "Other Non-current Assets".

18.Held-for-sale assets

(1) Classification and measurement of non-current assets or disposal groups held for sale

When the book value of a non-current asset or disposal group is recovered by the Company mainly byselling it (including the exchange of non-monetary assets with commercial nation) rather than continuouslyusing it, the non-current asset or disposal group is classified as held for sale.

The above-mentioned non-current assets do not include investment real estate measured by fair valuemodel, biological assets measured by net amount of fair value minus selling expenses, assets formed byemployee compensation, financial assets, deferred income tax assets and rights arising from insurance contracts.

The disposal group refers to a group of assets disposed of together by sale or other means in a transactionas a whole, and liabilities directly related to these assets transferred in the transaction. Under certaincircumstances, the disposal group includes goodwill obtained in business combination, etc.

Meanwhile, non-current assets or disposal groups that meet the following conditions are classified as held-for-sale: according to the practice of selling such assets or disposal groups in similar transactions, the non-current assets or disposal groups can be sold immediately under the current situation; The sale is very likely tohappen, that is, a resolution has been made on a sale plan and a certain purchase commitment has been obtained,and it is expected that the sale will be completed within one year. If the control over subsidiaries is lost due tothe sale of investments in subsidiaries, whether or not the Company retains part of the equity investments afterthe sale, when the investment in subsidiaries to be sold meets the classification conditions of holding for sale,the investment in subsidiaries will be classified as held-for-sale as a whole in individual financial statements,and all assets and liabilities of subsidiaries will be classified as held-for-sale in consolidated financialstatements.

When the non-current assets or disposal groups held for sale are initially measured or re-measured on thebalance sheet date, the difference between the book value and the net amount after deduction of the salesexpenses from the fair value is recognized as the asset impairment loss. For the amount of asset impairment lossrecognized by the disposal group held for sale, the book value of goodwill in the disposal group is offset first,and then the book value of non-current assets in the disposal group is offset proportionally.If the net amount of non-current assets held for sale or disposal group's fair value minus sales expensesincreases on the subsequent balance sheet date, the previously written-down amount will be restored andreversed within the amount of asset impairment loss recognized after being classified as held-for-sale, and thereversed amount will be included in the current profits and losses. The book value of offset goodwill shall notbe reversed.Non-current assets held for sale and assets in disposal group held for sale are not depreciated or amortized;Interest and other expenses of liabilities in disposal group held for sale continue to be recognized. All or part ofthe investments of associated enterprises or joint ventures classified as held for sale shall be accounted for bythe equity method for those classified as held for sale, while those retained (not classified as held for sale) shallcontinue to be accounted for by the equity method; When the Company loses significant influence on theassociated enterprises and joint ventures due to the sale, it shall stop using the equity method.If a certain non-current asset or disposal group is classified as held-for-sale, but the classificationconditions of held-for-sale are no longer met, the Company will stop classifying it as held-for-sale and measureit according to the lower of the following two amounts:

① The book value of the asset or disposal group before it is classified as held-for-sale, and the amountadjusted according to the depreciation, amortization or impairment that should have been recognized withoutbeing classified as held-for-sale;

② Recoverable amount.

19.Creditor's rights investment

Creditor's rights investment mainly accounts for bond investment measured by amortized cost, etc. TheCompany has measured the impairment loss based on the amount of expected credit losses in the next 12months or the entire duration, based on whether the credit risk has increased significantly since the initialrecognition.

20.Other Creditor's rights investment

For creditor's rights investment and other creditor's rights investment, the Company calculates the expectedcredit loss according to the nature of the investment, the counterparty and various types of risk exposure andbased on the expected credit loss rate in the next 12 months or the whole duration.

21.Long-term account receivable

None

22.Long-term equity investments

Long-term equity investment includes equity investment in subsidiaries, joint ventures and associatedenterprises. If the Company can exert significant influence on the investee, it is an associated enterprise of the

Company.

(1) Determination of initial investment cost

Long-term equity investment forming business combination: the long-term equity investment obtained bybusiness combination under the same control shall be taken as the investment cost according to the book valueshare of the owner's equity of the combined party in the consolidated financial statements of the finalcontrolling party on the combination date; Long-term equity investment obtained by business combination notunder the same control shall be regarded as the investment cost of long-term equity investment according to thecombination cost.For long-term equity investment obtained by other means: For long-term equity investment obtained bypayment in cash, the actual purchase price is taken as the initial investment cost; For long-term equityinvestment obtained by issuing equity securities, the fair value of issuing equity securities is taken as the initialinvestment cost.

(2) Subsequent measurement and profit and loss recognition method

Investment in subsidiaries shall be accounted by cost method, unless the investment meets the conditionsof holding for sale; Investment in associated enterprises and joint ventures shall be accounted for by equitymethod.

For the long-term equity investment calculated by the cost method, except for the cash dividends or profitsthat have been declared but not yet issued and that included in the actual payment or consideration, the cashdividends or profits declared and distributed by the investee are recognized as investment income and includedin the current profits and losses.

If the initial investment cost of long-term equity investment accounted by equity method is greater than thefair value share of identifiable net assets of the investee, the investment cost of long-term equity investmentshall not be adjusted; If the initial investment cost is less than the fair value share of the identifiable net assets ofthe investee at the time of investment, the book value of the long-term equity investment shall be adjusted, andthe difference shall be included in the profit and loss of the current investment period.

In case of accounting by equity method, the investment income and other comprehensive income arerecognized respectively according to the share of net profits and losses and other comprehensive incomerealized by the investee, and the book value of long-term equity investment is adjusted at the same time;According to the profit or cash dividend declared and distributed by the investee, the part to be entitled to shallbe calculated, and the book value of long-term equity investment shall be reduced correspondingly; Theinvestee adjusts the book value of long-term equity investment for other changes in owner's equity except netprofits and losses, other comprehensive income and profit distribution and includes them in capital reserve(other capital reserve). When recognizing the share of the net profit and loss of the investee, the fair value ofidentifiable assets of the investee at the time of investment is taken as the basis, and the net profit of the investeeis recognized after adjustment according to the accounting policies and accounting periods of the Company.

If it can exert significant influence on the investee due to additional investment or implement joint controlbut does not constitute control, on the conversion date, the sum of the fair value of the original equity plus thenew investment cost shall be taken as the initial investment cost calculated by the equity method instead. Thedifference between the fair value and book value of the original equity on the conversion date, as well as theaccumulated fair value changes originally included in other comprehensive income, are transferred to thecurrent profits and losses accounted for by the equity method.

If the joint control or significant influence on the investee is lost due to the disposal of some equityinvestments, the remaining equity after disposal shall be accounted for according to Accounting Standards forBusiness Enterprises No.22-Recognition and Measurement of Financial Instruments on the date of loss of joint

control or significant influence, and the difference between fair value and book value shall be included in thecurrent profits and losses. Other comprehensive income recognized by the original equity investment due to theadoption of the equity method shall be accounted for on the same basis as the direct disposal of related assets orliabilities by the investee when the equity method is terminated; Changes in other owners' equity related to theoriginal equity investment are transferred into current profits and losses.

If the control over the investee is lost due to the disposal of part of equity investment, and the remainingequity after disposal can jointly control or exert significant influence on the investee, it shall be accounted foraccording to the equity method instead, and the remaining equity shall be regarded as being adjusted by theequity method when it is acquired; If the remaining equity after disposal cannot exercise joint control or exertsignificant influence on the investee, it shall be accounted for according to the relevant provisions ofAccounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments,and the difference between its fair value and book value on the date of loss of control shall be included in thecurrent profits and losses.If the Company's shareholding ratio decreases due to capital increase of other investors, causing loss ofcontrol, but it can exercise joint control or exert significant influence on the investee, the share of net assetsincreased by the investee due to capital increase and share expansion shall be recognized according to the newshareholding ratio, and the difference between the original book value of long-term equity investmentcorresponding to the decreased shareholding ratio shall be included in the current profits and losses; Then,according to the new shareholding ratio, it is regarded as being adjusted by the equity method when theinvestment is obtained.For unrealized internal transaction gains and losses between the Company and its associated enterprisesand joint ventures, the portion attributable to the Company shall be calculated according to the shareholdingratio, and investment gains and losses shall be recognized on the basis of offset. However, if the unrealizedinternal transaction losses between the Company and the investee are the impairment losses of the transferredassets, they will not be offset.

(3) Basis for determination of joint control and significant influence on the investee

Joint control refers to the common control of an arrangement in accordance with the relevant agreement,and the relevant activities of such arrangement must be unanimously agreed by the participants who share thecontrol rights before any decision is made. When judging whether there is common control, firstly, judgewhether all participants or a combination of participants collectively control the arrangement, and secondly,judge whether the decision-making of activities related to the arrangement must be unanimously agreed by theparticipants who collectively control the arrangement. If all participants or a group of participants must act inconcert to decide the relevant activities of an arrangement, it is considered that all participants or a group ofparticipants collectively control the arrangement; If two or more participants can collectively control anarrangement, it does not constitute joint control. When judging whether it is joint control, the protective rightsentitled to are not considered.

Significant influence means that the investor has the right to participate in the decision-making on thefinancial and operating policies of the investee, but cannot control or jointly control the formulation of thesepolicies with other parties. When determining whether it can exert significant influence on the investee, theinfluence of the voting shares of the investee directly or indirectly held by the investor and the currentexecutable potential voting rights held by the investor and other parties shall be considered, including theinfluence of the current convertible warrants, share options and convertible corporate bonds issued by theinvestee.

When the Company directly or indirectly owns more than 20% (including 20%) but less than 50% of the

voting shares of the investee, it is generally considered to have a significant influence on the investee, unlessthere is clear evidence that it cannot participate in the production and operation decisions of the investee undersuch circumstances, in which case it does not have a significant influence; When the Company owns less than20% (excluding) of the voting shares of the investee, it is generally not considered to have a significantinfluence on the investee, unless there is clear evidence that it can participate in the production and operationdecisions of the investee under such circumstances, in which case it has a significant influence.

(4) Equity investment held for sale

If all or part of the equity investment in an associated enterprise or joint venture is classified as assets heldfor sale, please refer to Note III. 13 for relevant accounting treatment.For the remaining equity investments that are not classified as assets held for sale, the equity method isadopted for accounting treatment.If the equity investment in an associated enterprise or joint venture that has been classified as held for saleno longer meets the classification conditions of assets held for sale, the equity method shall be used forretrospective adjustment from the date that it is classified as assets held for sale.

(5) Test method for impairment and accrual method for impairment provision

For investment in subsidiaries, associated enterprises and joint ventures, please refer to Note III. 31 for theaccrual method for impairment provision.

23.Investment real estate

The measurement mode of investment propertyThe company shall adopt the cost mode to measure the investment property.Depreciation or Amortization Method

Investment real estate refers to real estate held for rent or capital appreciation, or both. The Company'sinvestment real estate includes leased land use rights, land use rights transferred after holding and preparing forappreciation, and leased buildings.

The Company's investment real estate is initially measured according to the cost at the time of acquisition,and depreciation or amortization is accrued on schedule according to the relevant provisions of fixed assets orintangible assets.

For investment real estate that is subsequently measured by cost model, please refer to Note III. 31 for theaccrual method of asset impairment.

The difference between the disposal income from the sale, transfer, scrapping or damage of investment realestate after deduction of its book value and related taxes shall be included in the current profits and losses.

24.Fixed assets

(1) Recognition conditions of fixed assets

The Company's fixed assets refer to tangible assets held for the production of commodities, provision of laborservices, leasing or operation and management, with a service life exceeding one fiscal year.Only when the economic benefits related to the fixed assets are likely to flow into the enterprise and the cost ofthe fixed assets can be measured reliably, can the fixed assets be recognized.

The fixed assets of the Company are initially measured according to the actual cost at the time ofacquisition.Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economicbenefits related to them are likely to flow into the Company and the cost can be measured reliably; Daily repairexpenses of fixed assets that do not meet the requirements for subsequent expenditures of capitalization of fixed

assets are included in the current profits and losses or the cost of related assets according to the beneficiarieswhen they occur. For the replaced part, the book value is derecognized.

(2) The method for depreciation

The company uses the life average method to calculate the depreciation. Depreciation of fixed assets starts fromreaching the predetermined usable state, ends of confirmation or divided into non-current assets for sale.Among them, for the fixed assets that have been prepared for impairment, the accumulated amount of the fixedassets shall be calculated to determine the depreciation rate.At the end of each year, the Company reviews the service life, estimated net residual value and depreciationmethod of the fixed assets.If the service life estimate of fixed assets is different from the original estimate, the estimated service life offixed assets is adjusted; if the estimated net residual value is different.Terminates recognition of the fixed asset when it is disposed of or is expected to yield no economic benefitthrough use or disposal. The amount of disposal income from the sale, transfer, scrapping or destruction of fixedassets excluding its book value and related taxes shall be included in the current profit and loss.

(3)Cognizance evidence and pricing method of financial leasing fixed assets

Fixed assets leased by the Company shall be recognized as fixed assets acquired under finance leases whenthey meet one or more of the following criteria: ① Upon expiration of the lease term, the ownership of theleased assets shall be transferred to the Company.② The Company has the option right to purchase the leasedassets, and the concluded purchase price is expected to be far lower than the fair value of the leased assets whenexercising the option right. Therefore, the exercise of this option right by the Company can be determinedreasonably on the starting date of the lease.③ Even though the ownership of the assets is not transferred, thelease term accounts for most of the service life of the leased assets.④ The present value of the minimum leasepayment of the Company on the lease start date is almost equal to the fair value of the leased assets on the leasestart date.⑤ In case of special properties of the leased assets and no large alteration, only the Company can usethem. Fixed assets leased by finance lease shall be recorded at the lower of the fair value of the leased assets onthe lease start date and the present value of the minimum lease payment. The minimum lease payment is taken

as the recorded value of long-term payables, and the difference is taken as unrecognized financing expenses.Initial direct expenses such as handling fees, attorney fees, travel expenses, stamp duty, etc., which occur duringthe lease negotiation and signing of the lease contract, are included in the value of the leased assets.Unrecognized financing expenses are amortized by the effective interest rate method in each period of the leaseterm.Fixed assets leased by financing shall be depreciated by adopting policies consistent with the self-ownedfixed assets. If it can be reasonably determined that the ownership of the leased asset will be acquired upon theexpiration of the lease term, depreciation shall be accrued within the serviceable life of the leased asset; If it isimpossible to reasonably determine that the ownership of the leased asset can be acquired at the expiration ofthe lease term, depreciation shall be accrued within the shorter of the lease term and the serviceable life of theleased asset.

25.Construction in progress

The cost of construction in progress of the Company is determined according to the actual projectexpenditure, including all necessary project expenditures incurred during the construction period, borrowingcosts that should be capitalized before the project reaches the intended usable state, and other related expenses.

Construction in progress is transferred to fixed assets when it reaches the scheduled usable state.

See Note V. 31 for the method of depreciation of assets in construction in progress.

26.Borrowing costs

(1) Recognition principle of capitalization of borrowing costs

If the borrowing costs incurred by the Company can be directly attributed to the purchase, construction orproduction of assets that meet the capitalization conditions, they will be capitalized and included in the relevantasset costs; Other borrowing costs, when incurred, are recognized as expenses according to the amount incurred,and included in current profits and losses. Borrowing costs shall be capitalized if they meet the followingconditions at the same time:

① Asset expenditure has already occurred, including the expenditure incurred in the form of payment incash, transfer of non-cash assets or assumption of interest-bearing debts for the purchase, construction orproduction of assets that meet the capitalization conditions;

② Borrowing costs have already occurred;

③ The purchase, construction or production activities necessary to make the assets reach the intendedusable or saleable state have started.

(2) Capitalization period of borrowing costs

Capitalization of borrowing costs shall be stopped when assets eligible for capitalization acquired,constructed or produced by the Company reach the intended usable or saleable state. Borrowing costs incurredafter the assets in line with the capitalization conditions reach the intended usable or saleable state shall berecognized as expenses according to the amount incurred when they occur, and shall be included in currentprofits and losses.

If the assets that meet the capitalization conditions are abnormally interrupted in the process of purchase,construction or production, and the interruption lasts exceeds 3 months, the capitalization of borrowing costsshall be suspended; Borrowing costs during normal interruption period continue to be capitalized.

(3) Capitalization rate of borrowing costs and calculation method of capitalization amount

The interest expenses actually incurred in the current period of special borrowing shall be capitalized afterdeducting the interest income from the unused borrowing funds deposited in the bank or the investment incomefrom temporary investment; The capitalization amount of general borrowings is determined by multiplying theweighted average of the accumulated asset expenditure over the special loan by the capitalization rate of the

occupied general borrowings. Capitalization rate is calculated and determined according to the weightedaverage interest rate of general borrowings.

During the capitalization period, all the exchange differences of special borrowings in foreign currency arecapitalized; Exchange differences of general borrowings in foreign currency are included in current profits andlosses.

27.Biological Assets

None

28.Oil & Gas assets

None

29. Right to use assets

(1) Conditions for recognizing the right-to-use assets

The Company's right-to-use assets refers to the right of the Company as the lessee to use the leased assets duringthe lease term.On the start date of the lease term, the right-to-use assets is initially measured at cost. The cost includes: the initialmeasurement amount of lease liabilities; The lease payment amount issued on or before the start date of the leaseterm, where if there is a lease incentive, the amount related to the entitled lease incentive shall be deducted; Theinitial direct expenses incurred by the Company as the lessee; The cost expected to be incurred by the Company asthe lessee to dismantle and remove the leased assets, restore the site where the leased assets are located or restorethe leased assets to the state agreed in the lease terms. The Company, as the lessee, recognizes and measures thedemolition and restoration costs in accordance with the Accounting Standards for Business Enterprises No.13-Contingencies. Subsequent adjustments shall be made to any remeasurement of lease liabilities.

(2) Depreciation method of right-to-use assets

The Company adopts the straight-line method to accrue depreciation. If the Company, as the lessee, canreasonably determine that the ownership of the leased assets is acquired at the expiration of the lease term,depreciation shall be accrued within the remaining service life of the leased assets. If it cannot be reasonablydetermined that the ownership of the leased assets can be obtained at the expiration of the lease term, depreciationshall be accrued during the lease term or the remaining service life of the leased assets, whichever is shorter.See Note VI.31 for the impairment test method of the right-to-use assets and the provision method for impairment.

30.Intangible assets

(1)The intangible assets of the Company include land use rights, proprietary technology and software.

Intangible assets are initially measured at cost, and their service life is analyzed and judged when they areacquired. If the service life is limited, the intangible assets shall be amortized within the expected service life bythe amortization method that can reflect the expected realization mode of the economic benefits related to theassets from the time when they are available for use; If it is impossible to reliably determine the expectedrealization mode, they shall be amortized by straight-line method; Intangible asset\s with uncertain service lifeare not amortized.

Amortization methods of intangible assets with limited service life are as follows:

At the end of each year, the Company rechecks the service life and amortization method of intangibleassets with limited service life, adjusts the original estimate if it is different from the previous estimate, andhandles the change according to the accounting estimate.On the balance sheet date, if it is estimated that an intangible asset can no longer bring future economicbenefits to the enterprise, all the book value of the intangible asset will be transferred to the current profits andlosses.

（2）Accounting Policy of Internal Research and Development Expenditure

The Company divides the expenditure of internal research and development projects into expenditures inresearch stage and expenditures in development stage.

Expenditures in research stage are included in current profits and losses when they occurs.

Expenditures in development stage can only be capitalized if they meet the following conditions: it istechnically feasible to complete the intangible assets so that they can be used or sold; There is the intention tocomplete the intangible assets and use or sell them; The ways in which intangible assets generate economicbenefits, including those that can prove the existence of market for products produced by the intangible assets orthe existence of market for the intangible assets themselves, and that for the intangible assets that will be usedinternally, their usefulness can be proved; There are sufficient technical, financial and other resources tocomplete the development of the intangible assets and the ability to use or sell the intangible assets;Expenditures attributable to the development stage of the intangible assets can be measured reliably.Development expenditures that do not meet the above conditions are included in current profits and losses.

The research and development project of the Company will enter the development stage after the aboveconditions are met and a project is approved through technical feasibility and economic feasibility study.

Capitalized expenditures in development stage are listed as development expenditures on the balance sheet,and are converted into intangible assets from the date when the project reaches the intended purpose.

31.Long-term Assets Impairment

The asset impairment of long-term equity investment of subsidiaries, associated enterprises and jointventures, investment real estate, fixed assets, construction in progress, intangible assets, goodwill, etc. (exceptinventory, investment real estate measured according to fair value model, deferred income tax assets andfinancial assets) shall be determined according to the following methods:

On the balance sheet date, judge whether there is any sign of possible impairment of assets. If there is anysign of impairment, the Company will estimate its recoverable amount and conduct impairment test. Thegoodwill formed by business combination, intangible assets with uncertain service life and intangible assets thathave not yet reached the usable state are tested for impairment every year regardless of whether there is anysign of impairment.

The recoverable amount is determined according to the higher of the net amount of the fair value of theasset minus the disposal expenses and the present value of the estimated future cash flow of the asset. TheCompany estimates its recoverable amount on the basis of individual assets; If it is difficult to estimate the

recoverable amount of a single asset, the recoverable amount of the asset group shall be determined based onthe asset group to which the asset belongs. The identification of asset group is based on whether the main cashinflow generated by asset group is independent of cash inflow of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value, the Company willwrite down its book value to the recoverable amount, and the written-down amount will be included in thecurrent profits and losses, and the corresponding asset impairment provision will be accrued at the same time.As far as the impairment test of goodwill is concerned, the book value of goodwill formed by businesscombination is amortized to relevant asset groups according to a reasonable method from the acquisition date; Ifit is difficult to amortize to the related asset group, it shall be amortized to the related asset group portfolio. Therelated asset group or asset group portfolio is one that can benefit from the synergy effect of businesscombination, and is not larger than the reporting segment determined by the Company.In the impairment test, if there are signs of impairment in the asset group or asset group portfolio related togoodwill, firstly, the asset group or asset group portfolio without goodwill shall be tested for impairment, therecoverable amount shall be calculated, and the corresponding impairment loss shall be recognized. Thenimpairment test shall be carried out on the asset group or asset group portfolio containing goodwill, and its bookvalue shall be compared with the recoverable amount. If the recoverable amount is lower than the book value,the impairment loss of goodwill shall be recognized.Once the asset impairment loss is recognized, it will not be reversed in future accounting periods.

32.Long-term deferred expenses

The long-term deferred expenses incurred by the Company are priced at actual cost and amortized equallyaccording to the expected benefit period. For long-term deferred expense items that cannot benefit futureaccounting periods, all their amortized values are included in current profits and losses.

33.Contract liabilities

Contract liabilities refer to the obligation of the Company to transfer goods to customers for the received orreceivable consideration from customers. If the customer has paid the contract consideration or the Company hasobtained the unconditional collection right before the Company transfers the goods to the customer, the Companywill list the received or receivable amount as the contract liability at the earlier of the actual payment made by thecustomer and the due date for payment. Contract assets and liabilities under the same contract are listed in netamount, while contract assets and liabilities under different contracts are not offset.

34.Remuneration

1. Accounting Treatment Method of Short-term Compensation

During the accounting period when employees provide services, the Company recognizes the actual wages,bonuses, social insurance premiums such as medical insurance premiums, work-related injury insurancepremiums and maternity insurance premiums paid for employees and housing provident funds as liabilities, andincludes them in current profits and losses or related asset costs. If the liability is not expected to be fully paidwithin twelve months after the end of the annual reporting period when employees provide relevant services,and the financial impact is significant, the liability will be measured at the discounted amount.

2. Accounting Treatment Method of Severance Benefit Plans

After-service benefit plan includes defined contribution plan and defined benefit plans. Where the set

deposit plan refers to the post-employment benefits plan in which the enterprise no longer undertakes furtherpayment obligations after paying fixed fees to independent funds; Set benefit plan refers to the post-employment benefits plan except the set deposit plan.

Set deposit planThe set deposit plan includes basic old-age insurance, unemployment insurance and enterprise annuityplan, etc.In addition to the basic old-age insurance, the Company establishes an enterprise annuity plan ("annuityplan") according to the relevant policies of the national enterprise annuity system, and employees canvoluntarily participate in the annuity plan. Moreover, the Company has no other significant social securitycommitments for employees.During the accounting period when employees provide services, the amount that should be paid accordingto the set deposit plan is recognized as a liability and included in the current profits and losses or related assetcosts.Set benefit planFor set benefit plans, an actuarial valuation is conducted by an independent actuary on the annual balancesheet date, and the cost of benefit provision is determined by the expected cumulative benefit unit method. Theemployee remuneration cost caused by set benefit plans of the Company includes the following components:

① Service cost, including current service cost, past service cost and settlement gain or loss. Where: thecurrent service cost refers to the increase of the present value of set benefit plan obligations caused by theemployees providing services in the current period; Past service cost refers to the increase or decrease of thepresent value of set benefit plan obligations related to employee service in previous period caused by themodification of set benefit plans.

② The net interest of set benefit plan's net liabilities or net assets, including interest income of plannedassets, interest expense of set benefit plan obligations and interest affected by asset ceiling.

③ Changes arising from remeasurement of net liabilities or net assets of set benefit plans.

Unless other accounting standards require or allow employee benefit costs to be included in asset costs, theCompany will include the above items ① and ② in current profits and losses; Include item ③ in othercomprehensive income and such item will not be transferred back to profit or loss in the subsequent accountingperiod. When the original set benefit plan is terminated, all the parts originally included in other comprehensiveincome will be carried forward to undistributed profits within the scope of equity.

3. Accounting Treatment Method of Demission Welfare

If the Company provides dismissal benefits to employees, the employee remuneration liabilities arisingfrom the dismissal benefits shall be recognized and included in the current profits and losses on the earlier ofthe following dates: When the Company cannot unilaterally withdraw the dismissal benefits provided by thetermination of labor relations plan or layoff proposal; When the Company recognizes the costs or expensesrelated to the reorganization involving the payment of dismissal benefits.

If the employee's internal retirement plan is implemented, the economic compensation before the officialretirement date is the dismissal benefit. From the day when the employee stops providing services to the normalretirement date, the wages of the retired employees and the social insurance premiums paid will be included inthe current profits and losses at one time. Economic compensation after the official retirement date (such asnormal pension) shall be treated as post-employment benefits.

4. Accounting Treatment Method of Other Long-term Employee Benefits

If other long-term employee benefits provided by the Company to employees meet the conditions for theset deposit plan, they shall be handled in accordance with the above-mentioned relevant provisions on the setdeposit plan. If it meets the set benefit plans, it shall be handled in accordance with the above-mentionedrelevant regulations on set benefit plans, but the part of the related employee remuneration cost, which is "thechange caused by remeasurement of set benefit plan's net liabilities or net assets", shall be included in thecurrent profits and losses or related asset costs.

35.Lease liabilities

The company initially measures the lease liabilities according to the present value of the unpaid lease payments atthe beginning of the lease term. When calculating the present value of the lease payments, the company adopts theinterest rate included in the lease as the discount rate; If the interest rate included in the lease cannot bedetermined, the company's incremental borrowing interest rate shall be adopted as the discount rate. Leasepayments include:

① The fixed payment amount and the actual fixed payment amount after deducting the relevant amount of leaseincentive;

② Variable lease payments based on indices or ratios;

③ If the company reasonably determines that the option will be exercised, the lease payment includes the exerciseprice of the purchase option;

④ If the lease term reflects that the company will exercise the option to terminate the lease, the lease paymentincludes the payment required to exercise the option to terminate the lease;

⑤ The amount expected to be paid according to the guaranteed residual value provided by the company.The company calculates the interest expense of the lease liability in each period of the lease term according to thefixed discount rate, and records it into the current profit and loss or relevant asset cost.The amount of variable lease payments not included in the measurement of lease liabilities shall be included in thecurrent profits and losses or relevant asset costs when actually incurred.

36. Estimated Liabilities

If the obligation related to contingencies meets the following conditions at the same time, the Companywill recognize it as estimated liabilities:

(1) Such obligation is the current obligation undertaken by the Company;

(2) The performance of such obligation is likely to lead to the outflow of economic benefits from theCompany;

(3) The amount of such obligation can be measured reliably.

Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfillrelevant current obligations, and factors such as risks, uncertainties and time value of money related tocontingencies are comprehensively considered. If the time value of money has great influence, the best estimateis determined by discounting the related future cash outflow. The Company rechecks the book value of theestimated liabilities on the balance sheet date, and adjusts the book value to reflect the current best estimate.

If all or part of the expenses required to pay off the recognized estimated liabilities are expected to becompensated by a third party or other parties, the compensation amount can only be recognized as an assetwhen it is basically confirmed that it can be received. The recognized compensation amount shall not exceed the

book value of the recognized liabilities.

37. Share payment

(1) Types of share-based payment

The share-based payment of the Company is divided into equity-settled share-based payment and cash-settled share-based payment.

(2) Method for determining fair value of equity instruments

The fair value of equity instruments such as options granted by the Company with active market isdetermined according to the quoted price in the active market. The fair value of granted equity instruments suchas options without active market is determined by option pricing model. The selected option pricing modelconsiders the following factors: A. The exercise price of options; B. The validity period of the option; C. Thecurrent price of the underlying shares; D. Estimated volatility of share price; E. Expected dividend of shares; F.Risk-free interest rate within the validity period of the option.

(3) Basis for determining the best estimation of feasible equity instruments

On each balance sheet date during the waiting period, the Company makes the best estimate based on thelatest available follow-up information such as changes in the number of employees with feasible rights, andrevises the estimated number of equity instruments with feasible rights. On the vesting date, the final estimatednumber of vesting rights and interests instruments shall be consistent with the actual number of vesting rights.

(4) Accounting treatment related to implementation, modification and termination of share-based paymentplan

Equity-settled share-based payment is measured at the fair value of equity instruments granted toemployees. If the right is exercised immediately after the grant, the relevant costs or expenses shall be includedin the fair value of equity instruments on the grant date, and the capital reserve shall be increased accordingly. Ifthe rights can be exercised only after the services within the waiting period are completed or the specifiedperformance conditions are met, on each balance sheet date within the waiting period, based on the bestestimate of the number of equity instruments available, the services obtained in the current period shall beincluded in the relevant costs or expenses and capital reserve according to the fair value on the grant date ofequity instruments. After the vesting date, the recognized related costs or expenses and the total owner's equitywill not be adjusted.

Equity-settled share-based payment shall be measured according to the fair value of liabilities calculatedand determined on the basis of shares or other equity instruments undertaken by the Company. If the right isexercised immediately after the grant, the fair value of the liabilities assumed by the Company shall be includedin the relevant costs or expenses on the grant date, and the liabilities shall be increased accordingly. For cash-settled share-based payment that is feasible only after the service within the waiting period is completed or thespecified performance conditions are met, on each balance sheet date within the waiting period, based on thebest estimation of the feasibility and according to the fair value of the liabilities assumed by the Company, theservices obtained in the current period are included in the costs or expenses and corresponding liabilities. Oneach balance sheet date and settlement date before the settlement of related liabilities, the fair value of liabilitiesshall be re-measured, and the changes shall be included in the current profits and losses.

When the Company modifies the share-based payment plan, if the fair value of the granted equityinstruments is increased by modification, the increase of the services obtained shall be recognized according tothe increase of the fair value of the equity instruments; If the number of granted equity instruments is increasedby modification, the fair value of the increased equity instruments will be recognized as the increase in servicesobtained accordingly. The increase of fair value of equity instruments refers to the difference between the fair

values of equity instruments before and after modification on the modification date. If the total fair value ofshare-based payment is reduced by modification or the terms and conditions of the share-based payment planare modified in other ways that are unfavorable to employees, the accounting treatment of the obtained serviceswill continue, as if with no changes unless the Company cancels some or all of the granted equity instruments.During the waiting period, if the granted equity instruments are cancelled (except those cancelled due tonon-market conditions that do not meet the feasible rights conditions), the Company will treat the cancellationof the granted equity instruments as an accelerated exercise, and immediately record the amount to berecognized in the remaining waiting period into the current profits and losses, and recognize the capital reserveat the same time. If the employee or other party can choose to meet the non-feasible right condition but fails tomeet it during the waiting period, the Company will treat it as a cancellation for granting equity instruments.

38. Other financial instruments such as preferred stocks and perpetual bonds

None

39. Revenue

Accounting policies adopted for income recognition and measurement

(1) General principles

The Company has fulfilled the performance obligation in the contract, that is, to recognize the revenuewhen the customer obtains the control right of related goods or services.If the contract contains two or more performance obligations, the Company will amortize the transactionprice to each individual performance obligation according to the relative proportion of the individual sellingprice of the goods or services promised by each individual performance obligation on the contract start date, andmeasure the income according to the transaction price amortized to each individual performance obligation.When one of the following conditions is met, the Company will fulfill its performance obligations within acertain period of time; Otherwise, it performs the performance obligation at a certain time:

① The customer obtains and consumes the economic benefits brought by the Company's performance atthe same time of the its performance.

② Customers can control the goods under construction during the performance of the Company.

③ The commodities produced during the performance of the Company have irreplaceable uses, and theCompany has the right to collect payment for the performance part accumulated so far during the wholecontract period.

For the performance obligations performed within a certain period of time, the Company recognizes theincome according to the performance progress within that period. If the performance progress cannot bereasonably determined, and the cost incurred of the Company is expected to be compensated, the income shallbe recognized according to the amount of the cost incurred until the performance progress can be reasonablydetermined.

For obligations performed at a certain time, the Company shall recognize the income at the time when thecustomer obtains control of the relevant goods or services. When judging whether a customer has obtainedcontrol of goods or services, the Company will consider the following signs:

① The Company has the current right to receive payment for the goods or services, that is, the customerhas the current payment obligation for the goods or services.

② The Company has transferred the legal ownership of the goods to the customer, that is, the customer hasthe legal ownership of the goods.

③ The Company has transferred the physical goods to the customer, that is, the customer has physicallytaken possession of the goods.

④ The Company has transferred the main risks and rewards on the ownership of the goods to thecustomer, that is, the customer has obtained the main risks and rewards on the ownership of the goods.

⑤ The customer has accepted the goods.

⑥ Other signs that the customer has obtained control of the goods.

The Company has transferred goods or services to customers and has the right to receive consideration(and the right depends on other factors except the passage of time) as contract assets, and the contract assets aredepreciated on the basis of expected credit losses. The right of the Company to collect consideration fromcustomers unconditionally (only depending on the passage of time) is listed as receivables. The obligation of theCompany to transfer goods or services to customers for received or receivable consideration from customersshall be regarded as a contractual liability.Contract assets and contract liabilities under the same contract are listed in net amount. If the net amount isdebit balance, they are listed in "Contract Assets" or "Other Non-current Assets" according to their liquidity; Ifthe net amount is the credit balance, it shall be listed in "Contract Liabilities" or "Other Non-current Liabilities"according to its liquidity.

(2) Specific method

The specific method of revenue recognition of the Company is as follows:

Polarizer/Textile and garment sales contract:

Domestic sales: When the goods are delivered to the customer and the customer has accepted the goods,the customer obtains the control of the goods, and the Company recognizes the revenue.

Export: A. When the customer receives goods in China, the revenue recognition is the same as "RevenueRecognition for Domestic Sales"; B. When the delivery place of customer is outside the country, the Companymainly adopts FOB. When the goods are delivered from the warehouse and have been exported for customsdeclaration, the Company recognizes the revenue.

Revenue from property/accommodation services:

In the process of property/accommodation service provision, the Company recognizes revenue by stages.

The adoption of different business models in similar businesses leads to differences in accounting policies forincome recognitionNone

40.Government subsidy

Government subsidies are recognized when they meet the conditions attached to government subsidies andcan be received.

Government subsidies for monetary assets shall be measured according to the amount received orreceivable. Government subsidies for non-monetary assets are measured at fair value; If the fair value cannot beobtained reliably, it shall be measured according to the nominal amount RMB 1.

Government subsidies related to assets refer to government subsidies obtained by the Company forpurchasing and building or forming long-term assets in other ways; In addition, as a government subsidy relatedto income.

Where the government documents do not specify the object of the subsidy, and the subsidy can form long-term assets, the part of the government subsidies corresponding to the value of the assets shall be regarded asthe government subsidy related to the assets, and the rest shall be regarded as the government subsidies related

to the income; where it is difficult to be distinguished, government subsidies as a whole are treated as income-related government subsidies.

Government subsidies related to assets offset the book value of related assets, or are recognized as deferredincome and included in profits and losses by stages according to a reasonable and systematic method within theservice life of related assets. Government subsidies related to income, which are used to compensate relatedcosts or losses that have occurred, are included in current profits and losses or offset related costs; If used tocompensate related costs or losses in later periods, they will be included in the deferred income, and included inthe current profits and losses or offset related costs during the recognition period of related costs or losses.Government subsidies measured in nominal amount are directly included in current profits and losses. TheCompany adopts a consistent approach to the same or similar government subsidy business.Government subsidies related to daily activities are included in other income or offset related costsaccording to the nature of economic business. Government subsidies irrelevant to routine activities shall beincluded into the non-operating receipt and disbursement.

When the recognized government subsidy needs to be returned, if the book value of related assets is offsetduring initial recognition, the book value of assets will be adjusted; If there is a relevant deferred incomebalance, the book balance of the relevant deferred income will be offset, and the excess will be included in thecurrent profits and losses; In other cases, it is directly included in the current profits and losses.

For the discount interest of preferential policy loans, if the finance allocates the discount interest funds tothe lending bank, the actually received loan amount is taken as the recorded value of the loan, and theborrowing costs are calculated according to the loan principal and preferential policy interest rate. If the financedirectly allocates the discount interest funds to the Company, the discount interest will offset the borrowingcosts.

41.The Deferred Tax Assets / The deferred Tax Liabilities

Income tax includes current income tax and deferred income tax. Except for adjusted goodwill arising frombusiness combination or deferred income tax related to transactions or matters directly included in owner'sequity, they are all included in current profits and losses as income tax expenses.

According to the temporary difference between the book value of assets and liabilities and the tax basis onthe balance sheet date, the Company adopts the balance sheet liability method to confirm deferred income tax.

All taxable temporary differences are recognized as related deferred income tax liabilities, unless thetaxable temporary differences are generated in the following transactions:

(1) Initial recognition of goodwill, or the initial recognition of assets or liabilities arising from transactionswith the following characteristics: the transaction is not a business combination, and the transaction does notaffect accounting profits or taxable income when it occurs;

(2) For taxable temporary differences related to investments of subsidiaries, joint ventures and associatedenterprises, the time for the temporary differences to be reversed can be controlled and the temporarydifferences will probably not be reversed in the foreseeable future.

For deductible temporary differences, deductible losses and tax deductions that can be carried forward tolater years, the Company shall recognize the deferred income tax assets arising there from to the extent that it islikely to obtain the future taxable income used to offset the deductible temporary differences, deductible lossesand tax deductions, unless the deductible temporary differences are generated in the following transactions:

(1) The transaction is not a business combination, and it does not affect accounting profit or taxableincome when the transaction occurs;

(2) For deductible temporary differences related to investments of subsidiaries, joint ventures and

associated enterprises, corresponding deferred income tax assets are recognized if the following conditions aremet at the same time: temporary differences are likely to be reversed in the foreseeable future, and taxableincome used to offset the deductible temporary differences is likely to be obtained in the future.On the balance sheet date, the Company measures deferred income tax assets and deferred income taxliabilities according to the applicable tax rate during the expected period of recovering the assets or paying offthe liabilities, and reflects the income tax impact of the expected way of recovering the assets or paying off theliabilities on the balance sheet date.

On the balance sheet date, the Company rechecks the book value of deferred income tax assets. If it isunlikely that sufficient taxable income will be obtained in the future period to offset the benefits of deferredincome tax assets, the book value of deferred income tax assets will be written down. When sufficient taxableincome is likely to be obtained, the written-down amount shall be reversed.

42.Lease

（1）Accounting of operational leasing

(1) Identification of lease

On the contract start date, the lessor-the Company evaluates whether the customer in the contract is entitledto almost all the economic benefits arising from the use of the identified asset during the period of use, and hasthe right to direct the use of the identified asset during the period of use. Where a party in the contract transfersthe right to control the use of one or more identified assets within a certain period in exchange for consideration,the Company determines that the contract is a lease or contains a lease.

(2) The Company as the lessee

On the commencement date of the lease term, the Company recognizes right-of-use assets and leaseliabilities for all leases, except for simplified short-term leases and leases of low-value assets.

For the accounting policies of right-of-use assets, please refer to this section V. Significant accountingpolicies and accounting estimates 29. Right-of-use assets.

The lease liability is initially measured at the present value of the unpaid lease payments on the leasecommencement date of the lease period calculated by the interest rate implicit in the lease. If the interest rateimplicit in the lease cannot be determined, the incremental borrowing rate is used as the discount rate. Leasepayments include: fixed payments and in-substance fixed payments, deducting the relevant amount of the leaseincentive if there is a lease incentive; variable lease payments that depend on an index or ratio; the exerciseprice of a purchase option, provided that the lessee is reasonably determine that the option will be exercised; theamount payable to exercise the option to terminate the lease provided thatin the lease term it reflects that thelessee will exercise the option to terminate the lease; and the amount expected to be paid based on guaranteedresidual value provided by the lessee. Subsequently, the interest expense of the lease liability in each period ofthe lease term is calculated at a fixed periodic interest rate and included in the current profit and loss. Variablelease payments that are not included in the measurement of lease liabilities are included in the current profit andloss when they are actually incurred

Short-term leases

Short-term leases are leases with a lease term not exceeding 12 months from the commencement date of thelease term, except leases that include a purchase option.

The lessor will include the lease payments for short-term leases in the cost of relevant assets or currentprofits and losses on a straight-line basis during each period of the lease term.

Lease of low value asset

Low-value asset leases refer to leases with a value of less than 40,000 yuan when a single leased asset is abrand-new asset.For the lease of low-value assets, the Company chooses to adopt the above simplified treatment methodaccording to the specific circumstances of each lease.The lease payments for the value asset lease of the Company shall be included in the cost of the relevantassets or the current profit and loss on a straight-line basis in each period of the lease term.For the lease of low-value assets, the Company chooses to adopt the above simplified treatment methodaccording to the specific circumstances of each lease.Lease changeWhere the lease changes and the following conditions are met at the same time, the Company will makeaccount treatment for the lease change as a separate lease: ① The lease change expands the scope of the leaseby adding the right to use one or more leased assets; ②The increased consideration is equivalent to the amountadjusted by the individual price of the expanded part of the lease scope according to the contract situation afterchange.

Where the lease change is not accounted for as a separate lease, on the effective date of the lease change,the Company re-allocates the consideration of the contract after the change, re-determines the lease term, andre-measures the lease liability according to the lease payment after the change and the present valuecalculatedbythe revised discount rate.

Where the lease change leads to the narrowing of the lease scope or the shortening of the lease term, theCompany will reduce the book value of the right-of-use asset accordingly, and include the relevant gains orlosses on partial or complete termination of the lease into the current profit and loss.

If other lease changes result in re-measurement of lease liabilities, the Company adjusts the book value ofthe right-of-use asset accordingly.

(3) The Company as the lessor

When the Company acts as a lessor, a lease that substantially transfers all risks and rewards related to assetownership is recognized as a financial lease, and other leases other than financial leases are recognized asoperating leases.

Financial lease

In the financial lease, at the beginning of the lease term, the Company takes the net investment in the leaseas the entry value of the finance lease receivables, and the net investment in the lease is thesum oftheunguaranteed residual value and the present value of the lease receipts that have not been received on the startdate of the lease term after calculated according to the discounted interest rate implicit in the lease. TheCompany, as the lessor, calculates and recognizes the interest income in each period of the lease periodaccording to the fixed periodic interest rate. The variable lease payments obtained by the Company as a lessorthat are not included in the net lease investment measurement are included in the current profit and loss whenactually incurred.

The derecognition and impairment of financial lease receivables shall be accounted for in accordance withthe provisions of No. 22Accounting Standards for Business Enterprises-Recognition and Measurement ofFinancial Instruments and No. 23 Accounting Standards for Business Enterprises- Transfer of Financial Assets.

For rents under operating leases, the Company recognizes the current profits and losses on a straight-linebasis in each period of the lease term. The initial direct expenses incurred in relation to operating leases shall becapitalized and amortized on the same basis as rental income recognition during the lease term, and thenincluded in the current profit and loss in installments. The variable lease payments obtained in relation to

operating leases but not included in the lease receipts are included in the current profit and loss when actuallyincurred.Where the operating lease is changed, the Company will treat it as a new lease from the effective date of thechange, and the advance receipts or lease receivables related to the lease before the change are regarded as thereceipts of the new lease.

2. Accounting Treatment Method of Finance Lease

(1) Identification of lease

On the contract start date, the lessor-the Company evaluates whether the customer in the contract is entitledto almost all the economic benefits arising from the use of the identified asset during the period of use, and hasthe right to direct the use of the identified asset during the period of use. Where a party in the contract transfersthe right to control the use of one or more identified assets within a certain period in exchange for consideration,the Company determines that the contract is a lease or contains a lease.

(2) The Company as the lessee

On the commencement date of the lease term, the Company recognizes right-of-use assets and leaseliabilities for all leases, except for simplified short-term leases and leases of low-value assets.

For the accounting policies of right-of-use assets, please refer to this section V. Significant accountingpolicies and accounting estimates 29. Right-of-use assets.

The lease liability is initially measured at the present value of the unpaid lease payments on the leasecommencement date of the lease period calculated by the interest rate implicit in the lease. If the interest rateimplicit in the lease cannot be determined, the incremental borrowing rate is used as the discount rate. Leasepayments include: fixed payments and in-substance fixed payments, deducting the relevant amount of the leaseincentive if there is a lease incentive; variable lease payments that depend on an index or ratio; the exerciseprice of a purchase option, provided that the lessee is reasonably determine that the option will be exercised; theamount payable to exercise the option to terminate the lease provided thatin the lease term it reflects that thelessee will exercise the option to terminate the lease; and the amount expected to be paid based on guaranteedresidual value provided by the lessee. Subsequently, the interest expense of the lease liability in each period ofthe lease term is calculated at a fixed periodic interest rate and included in the current profit and loss. Variablelease payments that are not included in the measurement of lease liabilities are included in the current profit andloss when they are actually incurred

Short-term leases

Short-term leases are leases with a lease term not exceeding 12 months from the commencement date of thelease term, except leases that include a purchase option.

The lessor will include the lease payments for short-term leases in the cost of relevant assets or currentprofits and losses on a straight-line basis during each period of the lease term.

Lease of low value asset

Low-value asset leases refer to leases with a value of less than 40,000 yuan when a single leased asset is abrand-new asset.

For the lease of low-value asset, the Company chooses to adopt the above simplified treatment methodaccording to the specific circumstances of each lease.

The lease payments for the value asset lease of the Company shall be included in the cost of the relevantassets or the current profit and loss on a straight-line basis in each period of the lease term.

For the lease of low-value assets, the Company chooses to adopt the above simplified treatment methodaccording to the specific circumstances of each lease.

Lease changeWhere the lease changes and the following conditions are met at the same time, the Company will makeaccount treatment for the lease change as a separate lease: ① The lease change expands the scope of the leaseby adding the right to use one or more leased assets; ②The increased consideration is equivalent to the amountadjusted by the individual price of the expanded part of the lease scope according to the contract situation afterchange.Where the lease change is not accounted for as a separate lease, on the effective date of the lease change,the Company re-allocates the consideration of the contract after the change, re-determines the lease term, andre-measures the lease liability according to the lease payment after the change and the present value calculatedby the revised discount rate.Where the lease change leads to the narrowing of the lease scope or the shortening of the lease term, theCompany will reduce the book value of the right-of-use asset accordingly, and include the relevant gains orlosses on partial or complete termination of the lease into the current profit and loss.If other lease changes result in re-measurement of lease liabilities, the Company adjusts the book value ofthe right-of-use asset accordingly.

(3) The Company as the lessor

When the Company acts as a lessor, a lease that substantially transfers all risks and rewards related to assetownership is recognized as a financial lease, and other leases other than financial leases are recognized asoperating leases.In the financial lease, at the beginning of the lease term, the Company takes the net investment in the leaseas the entry value of the finance lease receivables, and the net investment in the lease is thesum of theunguaranteed residual value and the present value of the lease receipts that have not been received on the startdate of the lease term after calculated according to the discounted interest rate implicit in the lease. TheCompany, as the lessor, calculates and recognizes the interest income in each period of the lease periodaccording to the fixed periodic interest rate. The variable lease payments obtained by the Company as a lessorthat are not included in the net lease investment measurement are included in the current profit and loss whenactually incurred.The derecognition and impairment of financial lease receivables shall be accounted for in accordance withthe provisions of No. 22Accounting Standards for Business Enterprises-Recognition and Measurement ofFinancial Instruments and No. 23 Accounting Standards for Business Enterprises- Transfer of Financial Assets.Where the financial lease is changed and the following conditions are met at the same time, the Companywill make account treatment for the lease change as a separate lease: ① The lease change expands the scope ofthe lease by adding the right to use one or more leased assets; ②The increased consideration is equivalent to theamount adjusted by the individual price of the expanded part of the lease scope according to the contractsituation after change..Where the change of the financial lease is not accounted for as a separate lease, the Company shall treat thechanged lease according to the following circumstances: ①where the lease is classified as an operating leasewhen the change takes effect on the lease start date, the Company shall account for the lease change as a newlease from the effective date, and the net investment in the lease before the effective date of the lease change isused as the book value of the lease asset; ②where the lease is classified as a financial lease when the change

takes effect on the lease start date, the Company shall conduct accounting treatment in accordance with theregulation of revising or renegotiating contracts by" No. 22Accounting Standards for Business Enterprises-Recognition and Measurement of Financial Instruments".

43. Other important accounting policies and accounting estimates

(1)Change of main accounting policies

Accounting policy changes caused by implementation of new financial instrument standards

（2） Changes in accounting estimates

No significant changes in accounting estimates have occurred in the current period.

44.Change of main accounting policies and estimations

(1)Change of main accounting policies

□Applicable√ Not applicable

（2）Change of main accounting estimations

√ Applicable □Not applicable

45.Other

None

VI. Taxation

1. Main categories and rates of taxes

In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the information

2. Tax preference

.In accordance with relevant provisions of the Notice of Ministry of Finance, General Administration of Customs and State Taxation Administration Regarding Tax Preference Policies for Further Supporting the Development of New-type Display Device Industry (Cai Guan Shui (2021) No. 19),The Company manufactured keymaterials and parts for the upstream industry of new-type display devices including colorful light filter coatingand polarizersheet that comply with the planning for independent development of domestic industries may enjoy the preferential policies of exemption from import tariff for the import of raw materials and consumables for the purpose ofself use and production that can not be produced domestically from January 1, 2021 and December 31, 2030. The above preferential tax policies apply to the subsidiaries of the Company, SAPO Photoelectric Co., Ltd.

According to the relevant regulations of the Administrative Measures for the Accreditation of High-techEnterprises (GKFH No.32 [2016]) and the Guidelines for Accreditation Administration of High-techEnterprises (GKFH No.195 [2016]), the qualification of an accredited high-tech enterprise is valid for 3 yearsfrom the issuing date of the certificate. After obtaining the qualification of high-tech enterprise, the enterprise isentitled to the preferential enterprise income tax at a rate of 15% from the year when the certificate of high-techenterprise is issued. Shenzhen SAPO Photoelectric Technology Co., Ltd., a subsidiary of the Company, wasrecognized as a national high-tech enterprise in 2019, with a certificate number GR201944205666, valid for 3years, and paid enterprise income tax at a rate of 15%.

According to the Announcement of the Ministry of Finance and the State Taxation Administration onImplementing the Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrialand Commercial Households (Announcement No.12 of the Ministry of Finance and the State Administration ofTaxation in 2021) and the Announcement of State Taxation Administration on Implementing the RelevantMatters of Income Tax Preferential Policies in Support of Development of Small and Micro Profit Enterprisesand Individual Industrial and Commercial Households (Announcement No.8 of State Taxation Administrationin 2021), from January 1, 2021 to December 31, 2022, for the small low-profit enterprises, if the annual taxableincome does not exceed RMB 1 million, the taxable income shall be calculated at a rate of 12.5%, and theenterprise income tax is paid at a rate of 20%; if the annual taxable income exceeds RMB 1 million but less thanRMB 3 million, the taxable income shall be calculated at a rate of 50%, and the enterprise income tax will bepaid at a rate of 20%". The above preferential tax policies apply to the subsidiaries of the Company, ShenzhenBeauty Century Garment Co., Ltd., Shenzhen Huaqiang Hotel Co., Ltd., Shenzhen Lisi Industrial DevelopmentCo., Ltd., Shenzhen Shenfang Sungang Property Management Co., Ltd. and Shenzhen Shenfang PropertyManagement Co., Ltd.

3.Other

None

VII. Notes of consolidated financial statement

1.Monetary Capital

In RMB

Other noteThe total amount of restricted funds at the end of the period is 7940013.85 yuan, which is the security deposit ofthe subsidiary.

2. Transactional financial assets

In RMB

Other noteNote

3. Derivative financial assets

None

4. Notes receivable

(1) Notes receivable listed by category

In RMB

In RMB

Accrual of bad debt provision by portfolio:

In RMB

Description of determining the combination basis: it is divided into bank acceptance bills and commercialacceptance bills according to the subject of bill acceptance.Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:

□ Applicable √ Not applicable

(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：

In RMB

Of which the significant amount of the reversed or collected part during the reporting period

□ Applicable √ Not applicable

（3）The current accounts receivable write-offs situation

□ Applicable √ Not applicable

（4）Accounts receivable financing endorsed or discounted by the Company at the end of the period and notexpired yet on the date of balance sheet

In RMB

（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contract oragreementNone

（6） The actual write-off accounts receivable

NoneNote of the write-off the accounts receivable:

None

5. Account receivable

(1)Classification account receivables.

In RMB

Accrual of bad debt provision by single item: 13,364,381.94

In RMB

Accrual of bad debt provision by portfolio:

In RMB

Note：

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:

□ Applicable √ Not applicable

Disclosure by aging

In RMB

(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision: withdrawing bad debt by aging combination

In RMB

Of which the significant amount of the reversed or collected part during the reporting period :None

(3) The actual write-off accounts receivable

None

(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party

In RMB

（5）Account receivable which terminate the recognition owning to the transfer of the financial assetsNone

(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accountsreceivableNone

6.Receivable financing

In RMB

Changes in current period and fair value of receivables financing

□ Applicable √ Not applicable

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:

□ Applicable √ Not applicable

Other noteSome subsidiaries of the Company discount and endorse some bank acceptance bills according to theneeds of their daily fund management, therefore the bank acceptance bills of the subsidiaries are classified asfinancial assets measured at fair value with changes included in other comprehensive income.

There is no single bank acceptance bill with impairment provision of the Company. On June 30, 2022, theCompany considered that there was no significant credit risk in the bank acceptance bills held by it, and therewould be no significant loss due to bank default.

7.Prepayments

(1) List by aging analysis:

In RMB

Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in timeOn June 30, 2022, there was no large prepayment with an accounting age of more than one year in the balance ofprepayment .

（2）The ending balance of Prepayments owed by the imputation of the top five parties

The top five ending balances of prepayments collected according to prepaid objects totaled RMB36,080,705.39, accounting for 51.27 % of the total closing balances of prepaymentsOther note：None

8.Other receivable

In RMB

（1）Interest receivable

1) Category of interest receivable

In RMB

2) Significant overdue interest

None

3）Bad-debt provision

□ Applicable √ Not applicable

(2)Dividend receivable

1) Category of Dividend receivable

None

2) Significant overdue dividend

None3）Bad debt provision

□ Applicable √ Not applicable

（3）Other account receivable

1) Other accounts receivable classified by the nature of accounts

In RMB

2）Bad-debt provision

In RMB

Loss provision changes in current period, change in book balance with significant amount

□ Applicable √Not applicable

Disclosure by aging

In RMB

3) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：

In RMB

Where the current bad debts back or recover significant amounts:None

(4) Other account receivables actually cancel after write-off

None

(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party

In RMB

(6) Accounts receivable involved with government subsidies

None

(7) Other account receivable which terminate the recognition owning to the transfer of the financial assetsNone

(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accountsreceivableNone

9. Inventories

Whether the company need to comply with the disclosure requirements of the real estate industry

No

（1）Category of Inventory

In RMB

（2）Inventory falling price reserves and reserves for impairment of contract performance costs

In RMB

(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalizedNone

（4）Description of amortization amount of contract performance cost in the current periodNone

10.Contract assets

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of contract assets is accrued according to the general model ofexpected credit loss:

□ Applicable √Not applicable

Provision for impairment of contract assets in the current periodNone

11. Assets divided as held-to-sold

Not applicable

12. Non-current assets due within 1 year

None

13. Other current assets

In RMB

Other note：None

14.Creditor's right investment

NoneLoss provision changes in current period, change in book balance with significant amount

□ Applicable √ Not applicable

15.Other creditor's rights investment

NoneLoss provision changes in current period, change in book balance with significant amount

□ Applicable √ Not applicable

16. Long-term accounts receivable

(1) List of long-term accounts receivable

NoneLoss provision changes in current period, change in book balance with significant amount

□ Applicable √ Not applicable

(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assetsNot applicable

（3） The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term accounts receivableNot applicable

17. Long-term equity investment

In RMB

Other note：None

18. Other equity instruments investment

In RMB

Itemized disclosure of the current non - trading equity instrument investment

In RMB

Other note：None

19.Other non-current financial assets

In RMB

Other note: None

20. Investment real estate

(1) Investment real estate adopted the cost measurement mode

√Applicable □ Not applicable

In RMB

(2) Investment property adopted fair value measurement mode

□Applicable√ Not applicable

(3) Investment real estate without certificate of ownership

In RMB

Other note: None

21. Fixed assets

In RMB

(1) List of fixed assets

In RMB

(2) Fixed assets temporarily idled

None

(3) Fixed assets rented by finance leases

None

(4) Fixed assets without certificate of title completed

In RMB

Other note: None

（5）Liquidation of fixed assets

In RMB

Other note: None

22. Construction in progress

In RMB

(1) List of construction in progress

In RMB

（2）Changes of significant construction in progress

None

（3）Impairment provision of construction projects

Not applicable

（4）Engineering material

Not applicable

23. Productive biological assets

(1) Productive biological assets measured at cost methods

□ Applicable √ Not applicable

(2) Productive biological assets measured at fair value

□ Applicable √ Not applicable

24. Oil and gas assets

□ Applicable √ Not applicable

25. Right to use assets

In RMB

Other note：None

26. Intangible assets

(1) Information

In RMB

The proportion the intangible assets formed from the internal R&D through the Company amount the balance ofthe intangible assets at the period-end.

(2) Details of fixed assets failed to accomplish certification of land use right

Not applicable

27. R&D expenses

Not applicable

28. Goodwill

(1) Original book value of goodwill

In RMB

（2）Impairment of goodwill

In RMB

Information about an asset group or asset group portfolioNoneExplain the goodwill impairment test process, key parameters (such as forecast period growth rate at expectedfuture cash flow, stable period growth rate, profit margin, discount rate, forecast period, etc.) and theconfirmation method of goodwill impairment lossNoneImpact of the goodwill impairment testNoneOther noteNone

29. Long term amortize expenses

In RMB

Other note: None

30. Deferred income tax assets/deferred income tax liabilities

（1）Details of the un-recognized deferred income tax assets

In RMB

(2)Details of the un-recognized deferred income tax liabilities

In RMB

(3) Deferred income tax assets or liabilities listed by net amount after off-set

In RMB

(4)Details of income tax assets not recognized

In RMB

(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years

In RMB

Other note: None31 .Other non-current assets

In RMB

Other note:Note

32. Short-term borrowings

（1）Categories of short-term loans

In RMB

(2) Situation of Overdue Outstanding Short-Term Borrowing

The total amount of overdue short-term loans at the end of this period is in RMB 0.00, of which the importantoverdue short-term loans are as follows: None

33. Transactional financial liabilities

None

34. Derivative financial liability

None

35.Notes payable

In RMB

The total note payable not due at the end of the period is 0.00 yuan.

36. Accounts payable

(1) List of accounts payable

In RMB

(2) Significant advance from customers aging over one year

None

37.Advance account

(1) List of Advance account

In RMB

(2) Significant advance from customers aging over one year

None

38.Contract liabilities

In RMB

Amount and reasons for the significant change in the book value during the reporting periodNone

39.Payable Employee wage

(1) List of Payroll payable

In RMB

（2）Short-term remuneration

In RMB

（3）Defined contribution plans listed

In RMB

Other note：None

40.Tax Payable

In RMB

Other note：None

41.Other payable

In RMB

（1）Interest payable

None

（2）Dividends payable

None

(3) Other accounts payable

(a) Other accounts payable listed by nature of the account

In RMB

(b) Other significant accounts payable with aging over one year

None

42. Liabilities classified as holding for sale

None

43. Non-current liabilities due within 1 year

In RMB

Other note：None

44.Other current liabilities

In RMB

Other note：None

45. Long-term borrowing

(1) List of Long-term borrowing

In RMB

Description of the long-term loan classificationNoneOther note: None,

46.Bond payable

（1）Bond payable

None

（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetualcapital securities that classify as financial liabilityNone

(3) Note to conditions and time of share transfer of convertible bonds

None

（4）Other financial instruments that are classified as financial liabilities

None

47. Lease liabilities

In RMB

Other noteThe accrued interest expense of lease liabilities from January to June 2022 is RMB 319,246.14, which is includedin the financial expense-service expense.

48. Long-term payable

None

（1）Statement of long-term payroll payable

None

（2）Special payable

None

49. Long term payroll payable

（1）Statement of long-term payroll payable

None

（2）Change of defined benefit plans

None

50.Estimated liabilities

In RMB

Other note：None

51.Deferred income

In RMB

Details of government subsidies：

In RMB

Other note：None

52. . Other non-current liabilities

None

53.Stock capital

In RMB

Other note：None

54. Other equity instruments

(1) Basic information on the outstanding other financial instruments, including preferred shares, perpetualbonds, etc. at the end of the reporting periodNone

(2)Movement of the outstanding other financial instruments, including preferred shares, perpetual bonds, etc. atthe end of the reporting periodNone

55. Capital reserves

In RMB

Other notes, including the note to its increase/decrease and the cause(s) of its movement in the reporting period:

None

56.Treasury stock

None

57. Other comprehensive income

In RMB