Shijiazhuang Changshan Textile Limited By Share Ltd Report In The Third Quarter Of 2010

One point one

1.2 the company's third quarter financial report was not audited by accounting firms.

1.3 the person in charge of the company, Tang Zhangming, the director of charge of accounting, Gao Junqi and the head of accounting institutions (Accounting Supervisor) Zhao Yingtao declared: to ensure the authenticity and completeness of financial reports in quarterly reports.

2 company's basic situation

2.1 main accounting data and financial indicators

Unit: Yuan

2.2 the total number of shareholders at the end of the reporting period and the top ten shareholders' terms of indefinitely selling conditions.

Unit: stock

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, other liquid assets increased by 220.16% compared with the beginning of the year. This is mainly based on the relevant provisions of the "accounting standards for enterprises", and the pfer of Hebei Agricultural Bank of China Financial Leasing Co loan project from "holding to maturity investment" to "entrusted loan" accounts.

2, the clearance of fixed assets increased by 4636.55% compared with the beginning of the year.

3, accounts payable increased by 70.88% over the beginning of the year, mainly due to the increase in raw materials purchased during the current period and the purchase of some equipment, but not yet paid.

4, the accounts receivable increased by 67.97% compared with the beginning of the year. The main reason is the receipt of payment from the customer.

5, the tax payable will be reduced by 138.50% compared with the beginning of the year. The main reason is that the value added tax will not be deducted at the end of the term.

6, the non current liabilities due within one year will be reduced by 60.65% compared with the beginning of the year.

7, long-term borrowings decreased by 51.86% compared with the beginning of the year, mainly due to the repayment of bank loans due at the current stage.

8, deferred income tax liabilities were reduced by 41.98% compared with the beginning of the year.

9, operating income increased by 46.45% over the same period last year, mainly due to the increase in the current period and the increase in the price.

10, operating costs increased by 44.32% over the same period last year, mainly due to the increase in the current period, the increase in raw material costs and the increase in the cost of sales.

11, business tax and additional 36.36% more than the same period last year, mainly due to the increase in value added tax during the current reporting period.

12, sales expenses increased by 72.47% compared with the same period last year.

13, management fees increased by 33.46% over the same period last year, mainly due to the increase in the company's staff salaries over the same period.

14, asset impairment losses increased by 202.62% over the same period last year.

15, investment income increased by 194.50% over the same period last year, mainly due to the receipt of dividends from Bank of communications and Hebei bank.

16, operating profit increased by 319.54% over the same period last year, mainly due to the increase in sales volume and price increase in the current period.

17, operating income decreased by 98.40% compared with the same period last year.

18, operating expenses decreased by 99.38% compared with the same period last year.

19, total profits decreased by 59.29% compared with the same period last year.

20, the income tax expense increased by 2102.60% over the same period last year.

21, net profit decreased by 70.42% compared with the same period last year, mainly due to the recognition of land acquisition and storage gains in the same period last year.

22, net cash flows from operating activities increased by 6005.57% over the same period last year, mainly due to the increase in cash received by companies during the current period of sale of goods and services.

23, net cash flows from investment activities decreased by 147.60% over the same period last year, mainly due to the receipt of some land acquisition and storage funds during the same period last year.

24, net cash flows from financing activities decreased by 44.35% over the same period last year, mainly due to the increase in cash payments made by companies during the current period.

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

3.2.1 non standard opinion

Application is not applicable.

3.2.2 has the situation of providing funds to the controlling shareholder or its affiliated party, and providing guaranty in violation of the prescribed procedures.

Application is not applicable.

3.2.3 signing and performance of major contracts under day-to-day operation

Application is not applicable.

3.2.4 other

Application is not applicable.

3.3 performance of commitments by companies, shareholders and actual controllers

Application is not applicable.

3.4 forecast the cumulative net profit from the beginning of the year to the end of the next reporting period may be a loss or a cautionary note and a reason for a significant change compared with the same period last year.

Application is not applicable.

3.5 other important matters to be explained

3.5.1 investment in securities

Application is not applicable.

3.5.2 report period reception research, communication, interviews and other activities table

We did not receive on-site research, telephone communication and written enquiries from investors.

3.6 investment in derivatives

Application is not applicable.

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Position of investment in derivatives at the end of 3.6.1 reporting period

Application is not applicable.

Chairman: Tang Zhangming

Shijiazhuang Changshan textile Limited by Share Ltd board of directors

October 29, 2010