深纺织Ｂ：2021年第一季度报告（英文版）

The First Quarterly Report 2021 April 2021 1 Important Notice The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Companyhereby guarantees that there are no misstatement, misleading representation or important omissions in this report All of the directors presented the board meeting at which this Quarter Report was examined. Mr.Zhang Jian, Person in charge of the Company, Mr. He Fei, Chief financial officer and the Ms. Zhu Jingjing ,the person in charge of the 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 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 Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recoveredand the Shares Held by Top Ten Common Shareholders □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company 2.Total number of preferred shareholders 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)Matters concerning the Company's involving arbitration and the subsidiary’s' 2019 performance On March 9, 2020, the company received the Notice of Arbitration (No.452 -2) from Shenzhen InternationalArbitration Court and the Application for Arbitration submitted by Hangzhou Jinjiang Group Co., Ltd., which isthe applicant of this arbitration while the company is the respondent. Hangzhou Jinjiang Group Co., Ltd.submitted the following arbitration requests: 1. The ruling made the following changes to the Cooperation On March 26, 2020, the company received the Notice on Extending the Time Limit Appointed by Arbitrators(2020 SGZS No.452 -3) delivered by Shenzhen International Arbitration Court. Due to the complexity of thedispute and the special epidemic background, the applicant needs extra time to negotiate and communicate theprocedural matters of the case with the respondent, so it applies to Shenzhen International Arbitration Court toextend the time limit for appointing arbitrators in this case. Shenzhen International Arbitration Court believes that On April 17, 2020, the company received the Notice of Arbitral Tribunal Composition (2020 SGZS No.452-4)from Shenzhen International Arbitration Court. Both parties to the arbitration informed Shenzhen International Arbitration Court in writing of the results of arbitrator selection according to the arbitration procedure beforeMarch 30, 2020, and appointed 1 arbitrator respectively and 1 chief arbitrator together. On April 16, 2020, the On December 1, 2020, the arbitration case was heard in the Seventh Arbitration Tribunal of the Court ofArbitration located at the Shenzhen Stock Exchange.The arbitration tribunal made the following rulings on thiscase on March 25, 2021: 1. The applicant is exempted from performing the 2019 performance compensationobligations stipulated in Article 3.1 of the Cooperation Agreement, and is not required to pay the 244,783,800 （II）Provision of guarantees for subsidiaries to apply for bank mortgages In order to meet the capital requirements for the construction of the polarizer industrialization project (line 7)for super-large TVs, the 28th meeting of the seventh board of directors of the company deliberated and approvedthe "Proposal on Subsidiaries Applying for Mortgage Loans from Banks" and "About The Proposal on ProvidingGuarantees for Subsidiaries' Mortgage Loans, the Proposal on Providing Guarantees for Subsidiaries' MortgageLoans Deliberated and Passed by the Second Extraordinary General Meeting of Shareholders in 2020, the 34thMeeting of the Seventh Board of Directors, and the first interim meeting in 2021 The general meeting ofshareholders reviewed and approved the "Proposal on Clarifying the "Proposal on Providing Guarantees forSubsidiary Mortgage Loans" and the scope of guarantees in the resolution", and agreed that the subsidiary SAPOPhotoelectric will use some of its self-owned properties to take the