深纺织Ｂ：2020年第一季度报告（英文版）

TheFirstQuarterly Report 2020 1 Important Notice The Board of Directors,Supervisory Committee, alldirectors, supervisors and senior executivesof the Companyhereby guarantees that there are no misstatement, misleading representation or important omissions in this report All of the directors presented the board meeting at which this Quarterly Report was examined. Mr.Zhu Jun,Person in charge of the Company,Mr.He Fei, Chief financial officer and the Ms.Mu Linying, theperson in chargeofthe accounting department (the person in charge of the accounting)hereby confirm the This Report has been prepared in both Chinese and English, In case any discrepancy , the Chinese version shall II. Basic Information of the Company （1）Main financial dataand financial index Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √No √ Applicable □ Not applicable In RMB For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 oninformation disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses andits non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure □Applicable√Not applicable None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information II. Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company 2.Total number of preferredshareholders and shareholding of top 10 preferred shareholders by the end of □Applicable√Not applicable III Significant Events I. Major changes of main accounting statement items and financial indicators in the reporting period, as √ Applicable □ Not applicable (I) The progress of investment and construction of the polarized film industrialization project for In order to meet thecapitalneeds of Line 7 project construction, the "Proposal ontheCompany’sSubsidiaryApplying for Mortgage Loans from Banks" and the "Proposal on ProvidingGuarantee for theMortgage LoansbytheCompany’sSubsidiary"werereviewed and approvedinthe 28th meeting of the7th Board of Directors of theCompany,and in the Second Extraordinary Shareholders’Meeting of 2020,it reviewed and approvedthe“ Proposal on Providing Guaranteefor Subsidiary ’s Mortgage Loans”, agreed that the subsidiary ShenzhenShengbo Optoelectronics Technology Co., Ltdusespart of its self-owned properties to applyfor a fixedasset loanof 800million yuan from the syndicatewiththe lead bankofBank of Communications Co., Ltd. Shenzhen In order to meet theneedsof downstream panel customers, improve the overall production efficiency of theLine7 project and enhance the competitiveness of the enterprise,the subsidiary Shenzhen ShengboOptoelectronics Technology Co., Ltd. invested an additional 147.20millionyuan in the Line 7 project to build an As of the disclosure date of this report, theLine 7 projecthasbeencompleted the capping of the main plantand the manufacture ofhost equipment. At present, due to factors such as approval and the impact of the new plan by about 3 months. The company further strengthenedthe monitoring and management of budget, schedule,quality and other aspects, and rearranged the construction time node.It’sestimated that the purification anddecoration project will be completed by the end of July 2020, the installation of host equipment and the As of March 31, 2020, the cumulative investment contract value of the Line 7 project was 1,444. 3319 millionyuan, and the actual payment was977.7257millionyuan (using the raised funds of 409.9276millionyuan,and (II) Matters concerning the Company's involving arbitration and the subsidiary’s' 2019 performance OnMarch 9, 2020, theCompany received the 2020 Shen Guo Zhong Shou No.452-2 "Arbitration Notice" andthe "Arbitration Application" submitted by Hangzhou Jinjiang Group Co., Ltd.who isthe applicant.TheCompanyis the respondent for this arbitration.Hangzhou Jinjiang Group Co., Ltd. filedthearbitration request: 1.Rulingformakingthe following changes to the "Cooperation Agreement": (1)delete the original Article 3.1 of the"Cooperation Agreement", and the relevant outstanding rights and obligationswillno longerbeperformed ; (2) On March 26, 2020, theCompany received the2020 Shen Guo Zhong Shou No. 452-3 "Notice on Extendingthe Arbitrator's Appointment Period" delivered by the Shenzhen International Arbitration Court. Due to thecomplex disputes in this case and the special epidemic background, the applicant needs additional time tocommunicate with the respondent on the procedural matters in this case,therefore itapplied to the ShenzhenInternational Arbitration Court to extend the time limit for thearbitrator appointed in this case. Th