深纺织Ａ(000045)深纺织Ｂ2003年年度报告摘要（英文版）

深圳市纺织（集团）股份有限公司２００２年年度报告摘要 Stock code: 000045, 200045 Stock Abbreviation: Shen Textile A, Shen Textile B No. of Announcement: 2004-5 Summary of 2003 Annual Report of Shenzhen Textile (Holdings) Co., Ltd. §1 Important notes 1.1 The Board of Directors of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof. The summary of this annual report is selected from the annual report. If investors intend to know the detailed contents, they should read the full text of the annual report. 1.2 No director declares inability to warrant or objection to the authenticity, accuracy and completeness of the content of the annual report. 1.3 All directors attended the board meeting. 1.4 Shenzhen Pengcheng Certified Public Accountants and K.C. Oh & Co. issued unqualified auditor's report with no explanatory notes for the Company. 1.5.Mr. Guan Tongke, the board chairman of the Company, Mr. Liu Yunhou, general manager in charge of finance and Mr. Liu Yi, the director of Finance Dept., represent and warrant the financial and accounting report in the annual report is true and complete. §２ Ｂａｓｉｃ Ｉｎｆｏｒｍａｔｉｏｎ 2.1 Basic informatio n Stock abbreviation Shen Textile A, Shen Textile B Stock code 000045, 200045 Stock exchange Shenzhen Stock Exchange for listing Registered address and business 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen address Zip code 518031 Website E-mail sztext@szonline.net 2.2 Contact person and contact manner Board secretary Name Chao Jin 1 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 Contact address 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen Tel 83776043 Fax 83776139 E-mail cjane@mail.china.com §3 Highlights of Accounting Data and Financial Indicators 3.1 Main accounting data Unit: RMB'000 2002 (the previous Increase/decrease (%) 2003(the report year) year) Turnover 451,965 457,480 -1.21 Before-tax profit 42,200 11,851 256.09 Profit for the year 36,361 9,444 285.0 End of 2003 End of 2002 Increase/decrease (%) (End of report year) (End of previous year) Total assets 715,306 752,283 -4.92 Shareholders' 351,864 316,072 11.32 equity Net cash inflow from operating 5,721 74,149 -92.28 activities 3.2 Main financial indicators Unit: RMB'000 2003 (the report 2002 (the previous Increase/decrease (%) year) year) Earnings per share 0.223 0.058 284.48 Return on net 10.33 2.99 245.48 assets Net cash inflow per share from 0.04 0.45 -91.11 operating activities End of 2003 End of 2002 Increase/decrease (%) (End of report year) (End of previous year) Net assets per 2.15 1.93 11.40 2 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 share 3.3 Difference of domestic and foreign accounting standards √ Applicable□ Not applicable Unit: RMB'0000 Domestic accounting standards Overseas accounting standards Net profit 3,408.63 3,636.10 2003 2002 （RMB'000） （RMB'000） Pursuant to the financial report audited by Chinese C.P.A. Adjustment made for complying with IAS: 34,086 1,180 Writeback of over-provision for the depreciation Notes to of real estate of investment nature 2,346 2,346 difference Negative goodwill amortization 568 567 Writeback of impairment of unconsolidated subsidiaries 166 2,854 Disposal of unconsolidated subsidiaries (1,697) - Writeback of losses of subsidiaries for previous year - 1,786 Amortization of intangible assets 788 789 Others 104 (78) Restated pursuant to international financial report standard 36,361 9,444 §4 Particulars about the Changes of Share Capital and Shareholders 4.1 Schedule of Change in Share Capital Unit: shares Before this change Increase or decrease this After this change time (+/-) I. Non-negotiable shares 1. Promoter's shares 108,240,000 0 108,240,000 Of which: State-owned 108,240,000 0 108,240,000 shares 2. Raised corporate 0 0 shares 3 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 3. Staff shares 0 0 4. Preferred shares or 0 0 others Total non-negotiable 108,240,000 0 108,240,000 shares II. Negotiable shares 1. RMB common shares 22,176,000 0 22,176,000 2. Domestically listed 33,000,000 0 33,000,000 foreign-capital shares 3. Overseas listed 0 0 foreign-capital shares 4. Others 0 0 Total negotiable shares 55,176,000 0 55,176,000 III. Total shares 163,416,000 0 163,416,000 4.2 Table of shareholding of the top ten shareholders Total number of shareholders at the end of 20,822 the report period Particulars about the shareholding of the top ten shareholders Name of shareholder Increase or Number of Proporti Type of Quantity of Nature of (full name) decrease in shares held on (%) share pledged or shareholder the year at the end (Negotiab frozen shares (state-owned (shares) of year le or (shares) shareholder (shares) non-negot or foreign iable) shareholder) Shenzhen Investment 108,240,00 Non-nego State-owned Management Co., 0 66.24 7,000,000 0 tiable shareholder Ltd. 391,669 0.24 Negotiabl Zhuang Meili Unknown Unknown e Victor Onward 0 370,000 0.23 Negotiabl Foreign Printing & Dyeing Unknown e shareholder (HK) Co., Ltd. Shanghai Chengkai Unknown 293,445 0.18 Negotiabl Unknown 4 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 (Group) Co., Ltd. e Xiao Shenggen 268,660 0.16 Negotiabl Unknown Unknown e Zhou Jianguo 254,541 0.16 Negotiabl Unknown Unknown e Liu Jinqun 230,095 0.14 Negotiabl Foreign Unknown Unknown e shareholder Chen Jundi 186,720 0.11 Negotiabl Unknown Unknown e Cai Yaqin 174,665 0.11 Negotiabl Unknown Unknown e Shanghai Chengjiu 169,977 0.10 Investment Negotiabl Unknown Unknown Development Co., e Ltd. Notes to the related relationship Among the above top ten shareholders, state-owned corporate between the top ten shareholders or shareholder Shenzhen Investment Management Co., Ltd. is not their concerted action related to other shareholders. The Company does not know whether there is related relation between social public shareholders or whether they are persons taking concerted action defined in Regulations on Disclosure of Information about Shareholding of Shareholders of Listed Companies. Particulars about the shareholding of the top ten shareholders Name of shareholder (full name) Number of shares held at the end Type（A、B and H shares or of year (shares) other） Zhuang Meili 391,669 A Victor Onward Printing & Dyeing 370,000 B (HK) Co., Ltd. Shanghai Chengkai (Group) Co., 293,445 A Ltd. Xiao Shenggen 268,660 A Zhou Jianguo 254,541 A Liu Jinqun 230,095 B Chen Jundi 186,720 A 5 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 Cai Yaqin 174,665 A Shanghai Chengjiu Investment 169,977 A Development Co., Ltd. Xiao Lizhu 167,000 B shares Notes to the relation between the top The relation between the top ten shareholders is unknown. ten shareholders holding negotiable shares: 4.3 Introduction of the controlling shareholder and actual controller 4.3.1 Change of the controlling shareholder and actual controller □ Applicable√ Not applicable 4.3.2 Particulars about the controlling shareholder and other actual controller The shares held by Shenzhen Investment Management Co. account for 66.24% of the total share capital of the Company. Its legal representative: Li Heihu. Date of establishment: February 10, 1988. Main business: Management and supervision of state-owned assets, finance and property right representatives, share participation in various municipal enterprises and turnover investment, provision of loan guarantee, levy of occupation fee of after-tax profit and assets of state-run enterprises, other businesses authorized by the municipal government. Registered capital: RMB 2 billion. It is a solely state-owned company in Shenzhen. §5 Directors, Supervisors and Senior Executives 5.1 Change of Shareholdings of Directors, Supervisors and Senior Executives Shares held at Shares Name Sex Age Title Date of starting and year-beginning held at ending year-end Guan Male 56 Board chairman 2003.6.30—2006.6.29 37,200 37,200 Tongke Liu Male 45 Director, 2003.6.30—2006.6.29 0 0 Junhou General Manager Li Male 51 Director 2003.6.30—2006.6.29 30000 30000 Jingqiang Zhu Male 36 Director, 2003.6.30—2006.6.29 0 0 Dahua chief accountant Yang Male 49 Independent 2003.6.30—2006.6.29 0 0 Jichao director 6 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 Liu Male 42 Independent 2003.6.30—2006.6.29 0 0 Xiangqing director Huang Male 39 Independent 2003.6.30—2006.6.29 0 0 Hui director Male 51 Chairman of Gao Supervisory 2003.6.30—2006.6.29 0 0 Zhuofu Committee Guo Female 48 Supervisor 2003.6.30—2006.6.29 0 0 Jianhua Zhou 57 Male Deputy GM 2003.6.30—2006.6.29 0 0 Dadong Feng Male 41 Supervisor 2003.6.30—2006.6.29 0 0 Junbin Zhu Jun Male 40 Deputy GM 2003.6.30—2006.6.29 0 0 5.2 Particulars about the directors and supervisors of the Company holding positions at shareholder companies √ Applicable□ Not applicable Whether receiving Name Name of shareholder Position Term of office remuneration or subsidy Shenzhen Investment Zhu Dahua Dispatched Director From June 2001 Yes Management Co., Ltd. 5.3 Annual Remuneration of Directors, Supervisors and Senior Executives Unit: RMB'0000 Total amount of annual remuneration 0.00 The total amount of the remuneration of the top 144.50 three directors receiving the remuneration of the highest amount The total amount of the remuneration of the top 66.81 three senior executives receiving the remuneration of the highest amount 7 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 Subsidy of independent directors RMB 50,000 / person /year The traveling expenses of independent directors for attending board meetings and shareholders' general meetings and the expenses from exercising powers and Other benefits of independent directors functions according to the Articles of Association of the Company shall be borne by the Company and included in the administration expenses of the Company. Name of directors and supervisors not receiving Director Zhu Dahua remuneration and subsidy from the Company Range of remuneration Number of person 50-54 2 35-45 2 30-35 4 §6 Report of the Board of Directors 6.1 Discussion and analysis of the overall operation status in the report period The Company is mainly engaged in the production, import and export trade of textiles, garments and relevant products and sidelines in property lease, warehousing, real estate development and hotel business. The income earned by the Company in 2003 was RMB 451.964 million, a decrease of 1.2% over the same period of the previous year. Its net profit was RMB 34.086 million, an increase of 2788.6% over the same period of the previo us year. With the provision of RMB 24 million for contingent liabilities in the same period of the previous year being deducted, the net profit increased by 35.3% over the same period of the previous year mainly due to the Company's strengthening of business management, expansion of marketing channels and effective expense control. Industry: in the report period，the income of the Company from the manufacturing industry was RMB 191.273 million, an increase of 209.5% over the same period of the previous year. The total profit from manufacturing industry was RMB - 0.61 million. The loss decreased by RMB 4.05 million over the same period of the previous year. Trade: In the report period，the income and total profit of the Company from trade were RMB 214.173 million and RMB 8.47 million respectively, which decreased by 39% and 11.9% respectively over the same period of the previous year mainly due to the exclusion of the statements of Yehui International Co., Ltd. from the consolidation scope. Property lease and hotel business: The Company owns Shenfang Building and other properties including commercial stalls, factory buildings, office buildings and warehouses for 8 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 lease. In the report period，the income of the Company from property lease, warehousing and hotel business was RMB 43.229 million, which increased by RMB 2.879 million over the same period of the previous year. Real estate industry: In the report period，the Company developed Shenzhen Yinlu Apartment through cooperation and earned income of RMB 10.40 million. 6.2 Table of the status of key business in terms of line of business or product Unit: RMB'0000 Increase/dec In terms of line Increase/dec Increase/dec Income from Cost of key Gross profit rease of of business or rease of rease of cost key business business rate (%) gross profit product income (%) (%) rate (%) Other wholesale 21,417.31 19,115.13 10.75 -37.48 -37.41 -0.92 business Garment manufacturing 19,127.30 17,227.56 9.93 153.20 178.21 -44.94 industry Real estate development 1,040.00 131.71 87.34 0.00 0.00 100.00 and operation business Lease service 4,322.87 0.00 100.00 3.92 0.00 0.00 industry Including ： Related 0.00 0.00 -- 0.00 0.00 transactions The purchases and sales between the Company and its affiliated companies are settled according to contract price (approaching market price). The fund Principle of pricing of related lending between the Company and its affiliated companies is settled transaction according to the interest rate specified in loan contract (approaching normal bank loan interest rate). Notes to the necessity and The related transactions with related companies are normal market continuity of related behaviors. transactions 6.3 The status of key business in terms of areas 9 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 Unit: RMB'0000 Area Income from key business Increase/decrease of income (%) National business 20,579.09 60.55 Foreign business 25,328.40 23.61 Inter-industry internal -711.02 216.31 set-off 6.4 Particulars about suppliers and customers Total of the amount Proportion of total of purchase from the 9,631.42 26.93% purchase amount top five suppliers Total of the amount Proportion of total of sales to the top 16,534.23 36.58% sales amount five customers 6.5 Operation of invested companies (the investment income from whom accounts for over 10% of the net profit of the Company) □ Applicablev Not applicable 6.6 Reasons for the material change of key business and its structure □ Applicablev Not applicable 6.7 Reasons for the material change of the profitability ( gross profit rate) of the key business compared with the previous year □ Applicablev Not applicable 6.8 Analysis of the reasons for the material change of operating results and profit structure 10 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 compared with the previous year √ Applicable? Not applicable The reason for the change of profit structure in the report period as compared with the same period of the previous year: In the report period，the Company earned income of RMB 10.40 million and gross profit of RMB 9.08 million from real estate, which are the proceeds of its cooperative development of Shenzhen Yinlu Apartment. Analysis of the reasons for the material change of overall financial status compared with the previous year □ Applicablev Not applicable 6.9 Notes to the existing, current and future important influence of the material change of production and business environment, macro-policies, laws and regulations on the Company's financial status and operating results. □ Applicablev Not applicable 6.10 The fulfillment of profit target □ Applicablev Not applicable 6.11 Fulfillment of operation plan □ Applicablev Not applicable 6.12 Utilization of raised funds □ Applicablev Not applicable Change Item □ Applicablev Not applicable 11 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 6.13 Investment projects not utilizing raised funds Change Item □ Applicablev Not applicable 6.14 Explanation of the board of directors to the "nonstandard opinions" □ Applicablev Not applicable 6.15 The operation plan of the board of directors for the new year (if any) v Applicable □ Not applicable The Company will focus on the following work in 2004: (1) To enhance the production capacity and sales ability of newly established enterprises as soon as possible and further develop its key business. (2) To promote the development of new products and the construction of phase-II projects of Shenfang Lekai Photoelectronic Materials Co., Ltd. (3) To improve the mode of property management, enhance property management level and increase property income. (4) To create new brand image of the Company with the popularization of the products of new project as a point of breakthrough. (5) To steadily conduct effective production and operation management and seek efficiency through good management. Profit forecast for the new year (if any) □ Applicablev Not applicable 6.16 The preplan of the board of directors for profit distribution or capitalization of capital common reserve fund As audited by Shenzhen Pengcheng Certified Public Accountants, the net profit of the Company for 2003 is RMB 34,086,332.84. As audited by K.C. Oh & Co. pursuant to international accounting standards, the net profit of the Company for 2003 is RMB 36,361,000.00. As required in the articles of association of the Company, the Company is to appropriate 10% and 5% of its net profit for 2002 (RMB 34,086,332.84), i.e., RMB 3,408,633.28 and RMB 1704316.64, respectively for statutory common reserve fund and statutory public welfare fund. With the existing total share capital of the Company, i.e., 163,416,000 shares, as the base, the Company is to pay dividend of RMB 1.8 (including tax) to all shareholders for every 10 shares. After this distribution, the balance of the undistributed profit of the Company is RMB 564,445.12. 12 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 The accumulative capital surplus of the Company at the end of 2003 was RMB 126,994,259.45. It is suggested to capitalize part of capital surplus on five- for-ten basis to all shareholders with the total share capital at the end of 2003, i.e., 163,416,000 shares, as the base. After the implementation of the proposal for capital surplus capitalization, the balance of the capital surplus of the Company is to be RMB 45,286,259.45. §7 Important Events 7.1 Asset acquisition □ Applicablev Not applicable 7.2 Disposal of assets □ Applicablev Not applicable 7.3 Material guarantee □ Applicablev Not applicable 7.4 Related creditor's rights and debts Unit: RMB'0000 Financing to related party Financing of related party to the Related parties Company Amount Balance Amount Balance Shenzhen Tianlong Industrial and Trading 50.00 50.00 0.00 0.00 Co., Ltd. Shenzhen Xiangjiang Leather Product Co., 69.00 69.00 0.00 0.00 Ltd. Shenzhen Investment 0.00 0.00 470.00 470.00 Management Co., Ltd. Total 119.00 119.00 470.00 470.00 7.5 Entrusted asset management □ Applicable ?v Not applicable 13 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 7.6 Performance of commitments □ Applicablev Not applicable 7.7 Material lawsuits and arbitration □ Applicablev Not applicable 7.8 Particulars about duty performance of independent directors In the report period，the Company elected 3 independent directors，who account for 43% of the total directors of the Company. They are experts in the fields of textile, law and accounting respectively. In the report period，the board of directors of the Company seriously implemented all resolutions of the shareholders' general meeting according to relevant provisions of the Company Law and the Articles of Association of the Company. §8 Report of the Supervisory Committee In the report period， the supervisory committee of the Company duly performed its supervision duties and carried out effective supervision strictly according to the provisions of the Company Law and the Articles of Association of the Company. The supervisory committee held the opinion that the decision- making procedures of the Company were legal and its internal control regulations were sound. The directors and members of management of the Company worked diligently and practiced self discipline. No act that violated laws, regulations and the Articles of Association of the Company or harmed the interests of the Company was found. §9 Financial Report 9.1 Audit opinions K.C. Oh & Co. and Shenzhen Pengcheng Certified Public Accountants issued unqualified auditor's report with no explanatory notes for the Company. 9.2 Consolidated balance sheet, consolidated profit and loss statement and consolidated cash flow statement are attached hereinafter. 9.3 Notes to the change of accounting policies, accounting estimate and accounting method as compared with those for the annual report of the previous year. 14 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 1. The accounting policies remained unchanged. 2. Illustration of the change of accounting estimate. The original estimate of the useful life of textile machinery and equipment was not very reasonable according to the actual conditions of the use of textile machinery and equipment and the specific regulations of other textile enterprises on the useful life of machinery and equipment. According to SFD (2002) No. 11 resolution of the board of directors, the Company decided to adjust the useful life of its textile machinery and equipment from the original 10 years to 14 years. The above change of accounting estimate affected the net profit of the Company for 2003 by RMB 1.952 million. 3. The accounting method remained unchanged. 9.4 Notes to the change of consolidation scope as compared with that for the annual report of the previous year. The financial statements of Anhui Huapeng Textile Co., Ltd. were consolidated in this period. The financial statements of Hong Kong Yehui International Co., Ltd. and Shenzhen Fengsheng Garment Co., Ltd. were eliminated from the consolidation scope. As a result, the number of subsidiaries included in consolidation scope decreased from 12 in the same period of the previous year to 11 in this period. The above change of statement consolidation scope affected the total profit of the Company by RMB 1.129 million. This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall prevail. The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd. April 26, 2003 15 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 Shenzhen Textile (Holdings) Co., Ltd. Consolidated income statement for the year ended December 31, 2003 2003 2002 Notes RMB’000 RMB’000 Turnover (5) 451,965 457,480 Cost of sales ( 357,645 ) ( 365,091 ) Gross profit 94,320 92,389 Other revenue 4,253 10,197 98,573 102,586 Distribution and administrative expenses ( 58,833 ) ( 77,923 ) Operating profit 39,740 24,663 Income from investments (7) 10,822 20,712 Provision for loss on guarantees (8) ( 702 ) ( 24,000 ) Finance costs (9) ( 7,219 ) ( 11,443 ) Loss on deemed disposal of subsidiaries (28) ( 1,697 ) - Amortisation of negative goodwill 568 567 Share of profit from associates 688 1,352 Profit before taxation (10) 42,200 11,851 Taxation (11) ( 5,244 ) ( 2,745 ) Profit after taxation 36,956 9,106 Minority interests ( 595 ) 338 Net profit for the year 36,361 9,444 Earnings per share RMB0.223 RMB0.058 Earnings per share is calculated by dividing the net profit for the year of RMB36,361,000 (2002 - RMB9,444,000) attributable to shareholders by 163,416,000 shares (2002 - 163,416,000 shares) in issue during the year concerned. 16 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 Shenzhen Textile (Holdings) Co., Ltd. Consolidated balance sheet as at December 31, 2003 2003 2002 Notes RMB’000 RMB’000 Non-current assets Property, plant and equipment (12) 218,107 166,618 Investment properties (13) 101,372 101,372 Construction-in-progress (14) 7,907 11,565 Intangible assets (15) 38 58 Interests in associates (16) 28,262 58,346 Other investments (17) 82,728 79,170 438,414 417,129 Current assets Inventories (18) 38,753 55,745 Accounts receivable (19) 24,375 46,820 Prepayments, deposits and others receivable (20) 82,201 70,116 Investments in securities (21) 3,023 6,089 Cash and bank balances 128,166 156,384 276,518 335,154 Total assets 714,932 752,283 Capital and reserves Share capital (22) 163,416 163,416 Reserves 188,449 152,656 351,865 316,072 Minority interests (23) 78,787 61,456 Non-current liability Long-term loans, non-current portion (24) 4,200 4,200 Current liabilities Long-term loans, current portion (24) 119,100 140,300 Accounts payable 17,549 56,037 Others payable and accrued expenses 120,407 131,678 Dividend payable (25) 18,483 18,483 Provision for loss on guarantees (26) - 24,000 Provision for taxation 4,541 57 280,080 370,555 Total equity and liabilities 714,932 752,283 17 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 Shenzhen Textile (Holdings) Co., Ltd. Consolidated cash flow statement for the year ended December 31, 2003 2003 2002 RMB’000 RMB’000 Cash flow from operating activities Operating profit before taxation 42,200 11,851 Adjustment items : Depreciation and amortisation 18,690 17,686 Provision for loss on guarantees - 24,000 Profit on disposal of property, plant and equipment ( 565 ) ( 188 ) Loss on deemed disposal of subsidiaries 1,697 - Share of profit from associates ( 688 ) ( 1,352 ) Profit on disposal of other investments ( 3,475 ) ( 3,377 ) Provision for impairment loss made/(reversed) - property, plant and equipment - ( 20 ) - unconsolidated subsidiaries 554 448 - other investments ( 2,960 ) ( 4,950 ) - investments in securities 12 841 Provision for diminution in value of inventories made/(reversed) 303 ( 1,395 ) Provision for doubtful debts made/(reversed) ( 8,520 ) 2,424 Amortisation of negative goodwill ( 568 ) ( 567 ) Interest income ( 1,860 ) ( 1,623 ) Interest expense 7,012 9,973 Net operating cash inflow before movements in working capital 51,832 53,751 Increase in inventories ( 1,887 ) ( 12,595 ) Increase in accounts receivable ( 3,427 ) ( 1,873 ) Increase in prepayments, deposits and others receivable ( 6,546 ) ( 19,531 ) Increase/(decrease) in accounts payable ( 17,696 ) 30,028 Increase in others payable and accrued expenses 15,594 35,111 Decrease in loss on guarantees ( 24,000 ) - Cash inflow from operating activities before interest and tax payments 13,870 84,891 Income tax paid ( 1,449 ) ( 2,984 ) Interest paid ( 6,688 ) ( 7,758 ) Net cash inflow from operating activities c/f 5,733 74,149 18 －－ 深圳市纺织（集团）股份有限公司２００２年年度报告摘要 (to be cont’d) Shenzhen Textile (Holdings) Co., Ltd. Consolidated cash flow statement for the year ended December 31, 2003 (cont’d) Notes 2003 2002 RMB’000 RMB’000 Net cash inflow from operating activities b/f 5,733 74,149 Investing activities Interest received 1,860 1,623 Purchases of property, plant and equipment ( 21,905 ) ( 20,257 ) Increase in construction-in-progress ( 741 ) ( 2,486 ) Proceeds from disposal of property, plant and equipment 791 3,492 Increase in investments in associates - ( 25,000 ) Returns from associates received 1,814 2,059 Decrease in amounts due from associates 3,796 1,779 Increase/(decrease) in amounts due to associates 382 ( 40,595 ) Increase in other investments ( 1,175 ) ( 7,241 ) Proceeds from disposal of other investments and investments in securities 10,303 6,719 Increase in investments in securities ( 1,033 ) ( 1,990 ) Net cash outflow from investing activities ( 5,908 ) ( 81,897 ) Net cash outflow before financing activities ( 175 ) ( 7,748 ) Financing activities (27) Decrease in bank and other loans ( 21,200 ) ( ) Increase/(decrease) in minority interests ( 1,380 ) 14,759 Net cash outflow from financing activities ( 22,580 ) ( 29,755 ) Decrease in cash and cash equivalents ( 22,755 ) ( 37,503 ) Effect on deemed disposal and acquisition of Subsidiaries (28) ( 5,463 ) - Cash and cash equivalents as at beginning of the year 156,384 193,887 Cash and cash equivalents as at end of the year 128,166 156,384 Cash and cash equivalents as at end of the year are represented by : Cash and bank balances 128,166 156,384 19 －－