China Textile Machinery Limited By Share Ltd 2010 Third Quarter Report Text

Stock Code: 600610 securities abbreviation:

China

1 important hints

1.1 apart from the directors and supervisors of the company, Mr. Qian Jianzhong and MS. Lei Xiaohua, the board of directors, the board of supervisors and others

1.2 the board meeting was a communication mode. All the directors of the company attended the meeting.

1.3 the company's third quarter financial report was not audited.

One point four

Name of company leader Li Peizhong

Shi Lifen, the person in charge of accounting work

Hu Junmei, the head of accounting organization (Accounting Supervisor)

Li Peizhong, the head of charge of the company, Shi Lifen, the head of accounting, and the head of accounting institutions (Accounting Supervisor) Hu Junmei declared: to ensure the authenticity and completeness of financial reports in this quarterly report.

2 company's basic situation

2.1 main accounting data and financial indicators

Currency: RMB

At the end of last year, the end of this report will be increased or reduced by the end of last year (%).

Total assets (yuan) 383708335.70 407676319.26 -5.88

Owner's equity (or shareholder equity) (yuan) 217885428.21 224507241.41 -2.95

Net assets per share (yuan / share) attributable to shareholders of listed companies 0.61 0.63 -3.17

Year end to the end of the reporting period

(1-9 months) increase or decrease (%) compared with the same period last year.

Net cash flow from operating activities (yuan) -24817458.34 -312.97

Net cash flow from operating activities per share (yuan / share) -0.07 -250.00

Reporting period

(7-9) from the beginning of the year to the end of the reporting period.

(1-9 months) this report period increased or decreased (%) compared with the same period last year.

Net profit attributable to shareholders of listed companies (yuan) 1490276.96 8204500.58 -55.01

Basic earnings per share (yuan / share) 0.004 0.02 -55.56

After deducting non recurring gains and losses, the basic earnings per share (yuan / share) -0.02 -0.03 -100.00

Diluted earnings per share (yuan / share) 0.004 0.02 -55.56

Weighted average return on net assets (%) 0.73 3.59 decreased by 0.91 percentage points

After deducting non recurring gains and losses, the weighted average return on net assets (%) -3.37 -5.41 decreased by 1.99 percentage points.

Deducting non recurring items and amounts:

Unit: yuan currency: RMB.

The final amount from the beginning of the project to the reporting period

(1-9 months)

Non current assets disposal profit and loss 1331358.63

Government subsidies that are included in current profits and losses (closely related to business activities, except for government subsidies enjoyed by quota or quantitative enjoyment according to national uniform standards) 335000

In addition to the effective hedging business related to the normal business operations of the company, the fair value change gains and losses arising from trading financial assets and trading financial liabilities, as well as the investment income obtained from disposing of trading financial assets, trading financial liabilities and available for sale financial assets, are 18528210.40

In addition to the above, other non operating income and expenditure 387784.06

Total 20582353.09

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2.2 the total number of shareholders and the top ten shareholders in the reporting period.

Unit: stock

The total number of shareholders at the end of the reporting period (household) 21138

The top ten shareholders of tradable shares

The number of stocks held by the shareholders at the end of the term (full name).

Shanghai textile machinery workers' technical development and operation service company 3554652

Wang Xingzheng 1607900 foreign capital stocks listed in China

Yu Mingzhi 1215495 RMB common stock

Cao Yuhua 1105468 foreign capital stocks listed in China

Wang Chixu 1000000 RMB common stock

GUOTAI JUNAN SECURITIES (HONGKONG) LIMITED 945829 listed foreign capital stocks

DEAN FRANCIS LE BARON 858000 listed foreign capital stocks

Liu Yingbo 762300 foreign capital stocks listed in China

SHENYIN WANGUO NOMINEES (H.K.) LTD. 695110 listed foreign capital stocks

Liu Zhifeng 689430 overseas listing of foreign shares

3 important items

3.1 the situation and reasons for major changes in accounting statements and financial indicators of the company

Application is not applicable.

1, operating income increased by 44.40% over the previous year, mainly due to increased sales volume of air-jet looms.

2, the net cash flow generated by business activities is 312.97% lower than that in the same period last year. The main reason is that the company received the compensation for the resettlement and relocation of the Pacific Ocean's machinery and electricity (Group) Co., Ltd. for the pfer of the company's land use rights in the previous year.

3, net profit attributable to shareholders of listed companies increased by 30.21% from the beginning of the year to the reporting period.

3.2 analysis of the progress of major issues and their impact and Solutions

Application is not applicable.

1, the company needs to borrow RMB 20 million yuan from the Pacific Electric and mechanical (Group) Co., Ltd., entrusted by the Shanghai electric group finance limited liability company for the purpose of circulating capital turnover, with a period of six months, and the interest rate will float 10% below the benchmark interest rate.

The loan will be used to make up for the capital shortfall caused by the repayment of other loans by the company in advance (see company 2010-014 Bulletin).

2. The Bank of Eastern Shanghai branch (the Bank of China) was in February 2003 regarding the dispute between the company and its US dollar loan contract.

The Hong Kong High Court has filed a lawsuit. Now the company has reached a settlement agreement with the Bank of Hong Kong (see company 2010-017, 018).

3, in order to further speed up the development of modern service industry in our company, we can effectively improve the utilization ratio of idle factories generated by the adjustment of loom products to the middle and high end, so as to make the loom main industry and modern service industry develop at the same time and support each other.

The company signed a housing lease contract with Shanghai Hui Jiang Tang investment management company (see company bulletin 2010-017 and 2010-019).

3.3 performance of commitments by companies, shareholders and actual controllers

Application is not applicable.

In July 31, 2006, the relevant shareholders' meeting of the company passed the 10 share and 3.8 shares split share reform plan (see the company's August 1, 2006 announcement), and the share reform plan has not yet been implemented.

In January 18, 2008, Pacific Electric and mechanical (Group) Co., Ltd., holding 116923535 shares of the company (Zhan Zong equity 32.74%) became the largest shareholder of the company. Its commitment will be paid in accordance with the shareholder structure reform plan adopted by the relevant shareholders' meeting of the company. It will accelerate the implementation of the company's non tradable share reform plan and fulfill the obligations of stock lock and step by step in accordance with relevant laws, regulations, rules and regulations of securities regulatory authorities.

In June 2008, the Pacific Electric and mechanical (Group) Co., Ltd., through the Shanghai electric (Group) Corporation, applied to the relevant departments of Shanghai to apply for the approval of the increase of shares and to pay the consideration of the price according to the split share reform plan of the company. It was approved by the Shanghai state owned assets supervision and Administration Commission of the Shanghai state owned assets supervision and Administration Commission (SASAC), [2008]304, "the approval of the relevant issues concerning the split share reform of the shares of the China Textile Machinery Limited by Share Ltd" approved by the state owned assets supervision and Administration Commission of Shanghai Municipality. The principle agreed that Pacific Electric Machinery (Group) Co., Ltd., after the increase of 135694783 shares of China Textile Machinery Limited by Share Ltd (including: it should continue to complete the 72000000 shares acquired by Jiangsu NANDA hi tech Venture Capital Co., Ltd.), and pay 7025370 pairs of price options according to the China textile machinery Limited by Share Ltd share splitting reform plan.

Upon receipt of the above approval, the company launched the approval work to the Ministry of Commerce and other relevant departments.

In January 2009, the company received the reply of the Ministry of Commerce of the Shanghai Municipal Commerce Commission (formerly Shanghai Foreign Investment Working Committee) on the approval of the Ministry of Commerce on agreeing to the split share structure reform of China Textile Machinery Limited by Share Ltd ([2008]1495): first, according to the share splitting scheme adopted by the relevant shareholders' meeting of the A shares of the China Textile Machinery Limited by Share Ltd (hereinafter referred to as the company) in July 31, 2006, it agreed that the Pacific Ocean Mechanical and electrical (Group) Co., Ltd. (hereinafter referred to as Pacific Ocean), the only non tradable shareholder of the company, would circulate A shares to the company, paying a total of 9781200 shares on every 10 shares to pay a total of 9781200 shares to carry out the split share structure reform.

Two, after the company's equity changes, the total amount of registered capital and total capital of the company remains unchanged, of which the Pacific holds 179142335 shares, accounting for 50.17% of the total capital stock; the other raised legal person shares hold 22308000 shares, accounting for 6.25% of the total capital stock; the listed Renminbi common stock (A shares) holds 35521200 shares, accounting for 9.95% of the total share capital; and the domestic listed foreign shares (B shares) hold 120 million 120 thousand shares, accounting for 33.63% of the total capital stock.

Three, the company shall deliberate and rewrite the articles of association reconvened at the first shareholders' meeting after the implementation of the share reform, and submit it to the Ministry of Commerce for record within ten days after the shareholders' meeting and renew the approval certificate.

Four, shareholders' equity disposal and related matters shall be dealt with in accordance with the notice on the relevant issues concerning foreign capital management in the reform of equity splitting of listed companies.

As for the progress of stock litigation between shareholders, please refer to the "2009 annual report of the company - major matters - major litigation and arbitration matters one or two".

In accordance with the above decision of the Supreme People's Court of People's Republic of China, Pacific Electric and mechanical (Group) Co., Ltd. has initiated the relevant work of granting the above shares according to law.

In March 2010, the intermediate people's Court of Nanjing, Jiangsu Province, through the Shanghai branch of China Securities Depository and Clearing Co., Ltd., continued to freeze the 72 million social legal person shares of the company's second largest shareholder, Jiangsu NANDA high tech Venture Capital Co., Ltd., and the freeze period lasted from May 20, 2010 to May 19, 2012.

(see company announcement March 16, 2010)

Pacific Electric and mechanical (Group) Co., Ltd. has yet to fulfil the relevant legal procedures to complete the pfer of the above shares, and its completion time and results are uncertain. The company is highly concerned, and the progress will be announced in time.

The company's share reform will be further reported to the Shanghai stock exchange and the relevant regulatory authorities for approval based on the progress of the pfer of shares, and the progress will be announced in time.

There is still uncertainty about the implementation of the company's share reform plan.

3.4 the cumulative net profit from the beginning of the beginning of the year to the end of the next reporting period may be a deficit or a warning and reason for a significant change in comparison with the same period of the previous year

Application is not applicable.

3.5 implementation of cash dividend policy during the reporting period

Up to the end of the reporting period, the company's undistributed profit is still negative, so it is not allocated.

China Textile Machinery Limited by Share Ltd

Legal representative: Li Peizhong

October 25, 2010