LU THAI TEXTILE CO., LTD.
THE THIRD QUARTERLY REPORT FOR 2012
I. Important Notes
The Board of Directors, the Supervisory Committee, directors, supervisors and other senior management
personnel of Lu Thai Textile Co., Ltd. (hereinafter referred to as “the Company”) hereby guarantee that this report
carries no false information, misleading statements or major omissions, and accept, individually and collectively,
the responsibility for the factuality, accuracy and completeness of the information set forth herein.
All directors attended the board session for reviewing this report.
Mr. Liu Shizhen, Principal of the Company, Ms. Zhang Hongmei, Person in charge of accounting work and Mr.
Zhang Keming, Person in charge of accounting organ (Financial Manager) hereby confirmed that the Financial
Report enclosed in the third quarterly report is true and complete.
The Financial Report in the third quarterly report has not been audited by a CPA firm.
II. Company Profile
（I）Major accounting data and financial indexes
Any retrospective adjustment in previous financial statements?
□ Yes √ No □ Inapplicable
30 Sept. 2012 31 Dec. 2011 Increase/decrease (%)
Total assets (RMB Yuan) 7,694,438,414.93 7,751,885,340.43 -0.74%
Owners’ equity attributable to
shareholders of the Company 5,141,176,016.41 5,086,100,453.10 1.08%
(RMB Yuan)
Share capital (Share) 1,008,954,800.00 1,008,954,800.00 0%
Net assets per share
attributable to shareholders of
5.10 5.04 1.19%
the Company (RMB
Yuan/share)
YoY increase/decrease YoY increase/decrease
Jul.-Sept. 2012 Jan.-Sept. 2012
(%) (%)
Gross operating revenues
1,398,771,930.43 -5.72% 4,206,797,495.19 -5.77%
(RMB Yuan)
Net profit attributable to
shareholders of the Company 159,815,718.16 -28.97% 461,319,006.35 -35.63%
(RMB Yuan)
Net cash flow from operating
-- -- 732,296,823.97 -19.74%
activities (RMB Yuan)
Net cash flow per share from
operating activities (RMB -- -- 0.73 -18.89%
Yuan/share)
Basic EPS (RMB Yuan/share) 0.16 -30.43% 0.46 -36.11%
Diluted EPS (RMB
0.16 -30.43% 0.46 -36.11%
Yuan/share)
Weighted average ROE (%) 3.06% -1.64% 8.9% -6.43%
Weighted average ROE after
deducting non-recurring gains 2.68% -1.73% 8.55% -6.15%
and losses (%)
1
Items of non-recurring gains and losses
√Applicable □Inapplicable
Amount during
Item Jan.-Sept. 2012 (RMB Notes
Yuan)
Gains and losses on disposal of non-current assets 199,165.76
Tax rebate, reduction or exemption due to un-authorized
approval or the lack of formal approval documents
Government grants recognized in the current year, except
for those acquired in the ordinary course of business or
18,566,486.48
granted at certain quotas or amounts according to the
country’s unified standards
Gains and losses on fair value changes of transactional
financial assets and liabilities, and investment gains on
disposal of transactional financial assets and liabilities and 5,527,306.19
available-for-sale financial assets, except for the effective
hedging business related to the Company’s normal operation
Other non-operating incomes and expenses besides the
4,127,305.76
items above
Other gain and loss items that meet the definition of
non-recurring gains and losses
Minority interests effects -2,315,538.76
Income tax effects -7,697,071.90
Total 18,407,653.53 --
“Other gain and loss items that meet the definition of non-recurring gains and losses” & non-recurring gain and
loss items recognized as recurring gain and loss items according to the natures and characteristics of the
Company’s normal business
Involved amount (RMB
Item Notes
Yuan)
0.00
（IIII）Total number of shareholders and top 10 shareholders at the period-end
Total number of shareholders 114,841
Particulars about shares held by the top ten shareholders holding tradable shares
Number of tradable shares held Type and number of shares
Name of shareholder
at period-end Type Number
ZIBO LUCHENG TEXTILE 123,314,700 RMB ordinary shares 123,314,700
INVESTMENT CO., LTD.
DBS VICKERS (HONG Domestically listed foreign
40,528,642 40,528,642
KONG) LTD A/C CLIENTS shares
FIRST SHANGHAI Domestically listed foreign
8,037,715 8,037,715
SECURITIES LIMITED shares
AVIVA LIFE & PENSIONS Domestically listed foreign
3,930,923 3,930,923
UK LIMITED shares
CHINA INCOME FUND 3,639,157 RMB ordinary shares 3,639,157
INDUSTRIAL TREND 3,153,442 RMB ordinary shares 3,153,442
INVESTMENT MIXED TYPE
NATIONAL SOCIAL 3,007,858 RMB ordinary shares 3,007,858
SECURITY FUND
SINOCOT DEVELOPMENT Domestically listed foreign
2,981,000 2,981,000
COMPANY LIMITED shares
CREDIT SUISSE (HONG Domestically listed foreign
2,962,887 2,962,887
KONG) LIMITED shares
2
TOYO SECURITIES ASIA Domestically listed foreign
2,958,112 2,958,112
LIMITED-A/C CLIENT. shares
Among the shareholders above, except ZIBO LUCHENG TEXTILE INVESTMENT CO., LTD. is
Explanation on particulars of
the first majority shareholder of the Company, the other shareholders are all tradable A-share and
shareholders
B-share holders.
III. Significant Events
I ） Significant changes in major accounting data, financial highlights and reasons for these
changes
√Applicable □Inapplicable
(1) Monetary funds stood at RMB 498,070,581.88 on 30 Sept. 2012, down 38.60% over the opening amount,
which was mainly because the Company paid for the B-share buyback and unginned cotton.
(2) Transactional financial assets stood at RMB 6,321,347.70 on 30 Sept. 2012, down 69.81% over the opening
amount, which was mainly because transactional financial assets were delivered upon maturity and gains on fair
value changes decreased.
(3) Prepayments stood at RMB 151,219,291.17 on 30 Sept. 2012, down 50.33% over the opening amount, which
was mainly because the accounts prepaid for purchases in the last period were settled in this period.
(4) Other receivables stood at RMB 127,434,551.45 on 30 Sept. 2012, up 70.97% over the opening amount, which
was mainly because of the increase of the export tax rebates receivable.
(5) Construction in progress stood at RMB 297,561,248.81 on 30 Sept. 2012, down 40.74% over the opening
amount, which was mainly because the 50-million-meter high-quality piece-dyed fabric project and the
40-million-meter high-quality yarn-dyed fabric production line project partly went into production and the
relevant construction in progress turned into fixed assets.
(6) Other non-current assets stood at RMB 7,890,690.00 on 30 Sept. 2012, down 68.94% over the opening amount,
which was mainly because the prepayments for land turned into intangible assets.
(7) Notes payable stood at RMB 16,230,868.14 on 30 Sept. 2012, up 35.46% over the opening amount, which was
mainly because notes were adopted more often in settlement.
(8) Taxes and fares payable stood at RMB 5,657,428.35 on 30 Sept. 2012, down 81.50% over the opening amount,
which was mainly because of the increase of input VAT deductions.
(9) Interest payable stood at RMB 3,409,471.91 on 30 Sept. 2012, up 61.35% over the opening amount, which
was mainly because of the increase of interest provisions.
(10) Non-current liabilities due within one year stood at RMB 17,257,250.00 on 30 Sept. 2012, down 75.01%
over the opening amount, which was mainly because of the decrease of long-term borrowings due within one
year.
(11) Long-term borrowings stood at RMB 0.00 on 30 Sept. 2012, down 100.00% over the opening amount, which
was mainly because mature borrowings were repaid.
(12) Deferred income tax liabilities stood at RMB 3,088,552.41 on 30 Sept. 2012, down 41.31% over the opening
amount, which was mainly because of the decrease of the taxable temporary difference resulted from the fair
value changes of transactional financial assets.
(13) Treasury stock stood at RMB 167,604,401.19 on 30 Sept. 2012, up 100% over the opening amount, which
was mainly because of the buyback of B-shares.
(14) Business taxes and surtaxes for the reporting period stood at RMB 12,292,119.83, down 55.47% over the
same period of last year, which was mainly because of the decrease of the city maintenance & development tax
and the educational surcharge payable.
(15) Financial expenses for the reporting period stood at RMB 52,047,616.39, up 47.08% over the same period of
last year, which was mainly because of the decrease of exchange gains.
(16) Asset impairment loss for the reporting period stood at RMB 229,769.28, down 84.91% over the same period
of last year, which was mainly because bad-debt provisions decreased as assets changed.
(17) Investment income for the reporting period stood at RMB 19,596,338.49, down 64.59% over the same period
of last year, which was mainly because of the decrease of the investment income from transactional financial
assets.
3
(18) Non-operating expenses for the reporting period stood at RMB 3,559,910.03, down 75.84% over the same
period of last year, which was mainly because of the decrease of the loss on non-current asset disposal.
(19) Income tax expenses for the reporting period stood at RMB 77,844,369.77, down 47.45% over the same
period of last year, which was mainly because of the decrease of the total profit.
(20) Total profit for the reporting period stood at RMB 544,604,740.28, down 39.49% over the same period of last
year, which was mainly because the operating revenues decreased 5.77% and the operating costs increased 3.40%
on a year-on-year basis.
(21) Net cash flows from investing activities for the reporting period stood at RMB -510,472,041.17, down
74.79% over the same period of last year, which was mainly because of a greater input to the 50-million-meter
high-quality piece-dyed fabric project and the 40-million-meter high-quality yarn-dyed fabric production line
project.
II Progress of significant events and its influence, as well as the analysis and explanation on solutions
1. About non-standard audit opinion
□Applicable √Inapplicable
2. The Company offers capital to the controlling shareholder or its related parties or provides
external guarantees in violation of the prescribed procedures.
□Applicable √Inapplicable
3. Signing and execution of significant contracts concerning routine operation
□Applicable √Inapplicable
4. Others
√Applicable □Inapplicable
1. The Proposal on Repurchase of Partial Domestically Listed Foreign Shares (B-share) of the Company and the
Preplan on Repurchase of Partial Domestically Listed Foreign Shares (B-share) of the Company were reviewed
and approved at the 21st Session of the 6th Board of Directors on 6 Jun. 2012 and the 2nd Special Shareholders’
General Meeting for 2012 on 25 Jun. 2012 held by the Company. The Company decided to, within 12 months
since the repurchase resolution was made at the shareholders’ general meeting, repurchase domestically listed
foreign shares (B-shares) not exceeding 100 million shares (it’s subject to the actual amount of repurchased shares
upon the repurchase expires) with its self-owned funds. And the repurchase price should not be higher than HK$
7.38/share (after adjustment), the Company also authorized the Board of Directors to write off the repurchased
shares after completing the repurchase event. The Company has finished all the approval procedures for
repurchasing B-share on 8 Sept. 2012 and implemented the repurchase on 10 Sept. 2012. Up to the period-end,
29,749,762 B-shares have been repurchased, accounting for 2.95% of the total share capital of the Company,
buying at the maximum price of HK$ 6.94/share and the minimum price of HK$ 6.80/share, and a total amount of
HK$ 204,976,962.04 (including stamp duty and commission) were paid.
2. The Proposal on Adjusting the Depreciation Period for Fixed Assets was reviewed and approved at the 24th
Session of the 6th Board of Directors held by the Company on 24 Sept. 2012, at which the Company decided to
adjust the depreciation period of fixed assets since 1 Oct. 2012, relevant announcement has been published on
Securities Times, Shanghai Securities News and Ta Kung Pao as well as www.cninfo.com.cn dated 25 Sept. 2012.
（ III Commitments of the Company or shareholders with an over 5% shareholding made in or carried
down into the reporting period
√Applicable □Inapplicable
Event Commitment Commitment Commitment Commitment Execution
4
maker contents time period
Zibo Lucheng
will not reduce
its shareholding
within 60
months after
share merger
reform and,
within 24
months after
that, the price of
selling holding
shares shall not
be lower than
RMB 15 per
share (if the
share capital
changes,
Lucheng
ex-rights will be
fulfilled the
conducted); it
commitment of
proposed and
Zibo Lucheng increasing its
voted for a cash
will not reduce shareholding
distribution not
its shareholding with the
lower than 50%
within 60 dividends it
of the profit
months after received in 2005
available for
share merger and 2006. The
distribution in
reform and, total profit for
the year at the
within 24 2008 went up
Zibo Lucheng 2006
months after 58.06% over
Textile Shareholders’
Commitment made in a share reform 12 Jun. 2006 that, the price of 2005. Up to 12
Investment Co., General Meeting
selling holding Jun. 2011, the
Ltd. and 2007
shares shall not trading
Shareholders’
be lower than moratorium on
General
RMB 15 per the 98,358,000
Meeting; it will
share (if the shares held by
increase the LU
share capital Lucheng
THAI A shares
changes, expired, which
held by it
ex-rights will be became tradable
through trading
conducted) on 24 Jun. 2011.
at the secondary
No shareholding
market with the
decrease has
dividends
taken place yet.
received in 2005
and 2006, and
the increase of
the LU THAI A
shares held shall
be accomplished
within 12
months after the
dividend is
transferred to its
account. In
2008, the total
profit increased
by not less than
30% compared
with that in
2005.
Commitment made in an acquisition report Naught Naught Naught Naught
a report changes of exchange
orCommitmenton made in assetowners’ equity Naught Naught Naught Naught
Raised funds The
Lu Thai Textile 150,000-Ingot
Commitment made in share issuance investment 19 Dec. 2008
Co., Ltd. Top-grade Fine
projects
Combed Yarn
5
Project, the
50-thousand
Ingot
Two-for-one
Twisting
Production Line
Project, the
Project for
Supplementing
the Working
Capital and the
Production Line
Project for
10-million-mete
r Top-grade
Jacquard
Fabrics for
Women’s Wear
among raised
funds
investment
projects have
been completed.
On 18 Oct.
2011, as
reviewed and
approved at the
3rd Special
Shareholders’
General
Meeting for
2011, raised
funds of RMB
140 million for
the Marketing
Network
Development
Project were
transferred to a
new production
line project for
40-million
Meter top-grade
yarn-dyed
fabric. By the
end of the
reporting period,
the yarn-dyed
fabric project
had been
completed and
the Brand and
Marketing
Network
Development is
still going on.
Commitments made to minority Naught Naught Naught Naught
shareholders fulfilled in time or not
Commitment √ Yes □ No □ Inapplicable
Specific reasons for failing to fulfill the
Naught
commitment and plan for the next step
Make commitments regarding the
horizontal competition and related-party √ Yes □ No □ Inapplicable
transactions caused or not
Promised deadline for solving the problem Naught
6
Ways of solving the problem Naught
Execution of the commitment Naught
（IV Predict the 2012 annual operating results
Warnings of possible loss or large-margin change of the accumulated net profit made during the period from the
beginning of the year to the end of the next reporting period compared with the same period of the last year
according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
（V）Other significant events that need to be explained
1. Securities investment
□Applicable √Inapplicable
2. Investments in derivatives
√Applicable □Inapplicable
The Company conducted derivatives products transaction in order
for hedging. And the forward settlement hedging was operated by
installments, with the relevant amount not more than the planned
derivatives products transactions. And all derivatives products
transaction was zero-deposit. Meanwhile, the Company had a
complete risk control system for sufficient analysis and prevention
of possible risks such as risk of laws and regulations, credit risk,
operation risk and market risk.
1. Risk of laws and regulations
The Company conducted derivatives products transaction in strict
accordance with relevant laws and rules as well as regulatory
policies from government securities regulatory authorities, if there
were no standard operation procedures and strict approval
procedures, it was easy to cause compliant and regulatory risks
existing in the validity and feasibility of contract, commitments and
other legal documents signed.
Precautionary measures: The Company carefully studied and
mastered laws, regulations and policies relevant to derivative
products transaction, formulated internal control rules for the
Analysis on risks and control measures of derivative products
forward settlement hedging business, standardized the operation
held in the reporting period (including but not limited to
procedures. And strengthened the compliant examination on
market risk, liquidity risk, credit risk, operation risk, law risk,
derivative products investment business, and strictly abided by
etc.)
relevant laws, regulations and the Company’s internal management
rules.
2. Credit risk and liquidity risk
When the contract matures, the Company couldn’t deliver as
scheduled due to insufficient liquidity, and the counterparty or the
Company couldn’t fulfill the contract due to other aspects except the
liquidity, which would cause credit risk and further economic losses
for the Company.
Precaution measure: the Company chose the powerful financial
institutions with good reputation as the counterparty, and signed
standard derivative products transaction contract, as well as strictly
controlled the credit risk of counterparty. The Company conducted
derivative investment transactions according to the relevant
approval procedure, which was in line with relevant laws,
regulations, the Company’s Articles of Association, the Management
Rules for Derivative Investment of Lu Thai Textile Co., Ltd. and the
Plan for Derivative Transactions in 2012 approved at the First
Special Session of the Shareholders’ General Meeting for 2012 on 5
Mar. 2012, and performed relevant information disclosure
7
responsibilities. The Company decided the up limit for the amount
of derivative products transaction according to the production and
operation scale and the progress of foreign exchange income for the
Company, and delivered by phases. It was also possible to use
extension of term and other ways to ensure the fulfillment of
contract as schedules upon the mature of contract, and wouldn’t
cause any loss of credit risk for the Company due to insufficient
liquidity or other reasons.
3. Operation risk
The derivative financial transactions had high specialty and
complexity, so imperfect internal operation procedures, staffs and
external events would make the Company to undertake risks during
the transaction.
Precaution measure: The Company promulgated strict authorization
and approval system and perfect regulatory mechanism, fixed the
departments, operation procedures and approval procedures system
to conduct derivative products transaction, established special risk
control positions, implemented strict authorization and post checks
and balances system, meanwhile, it improved the overall quality of
relevant personnel through strengthening the business training and
professional ethics education for them. Besides, it established the
System of Reporting the Abnormal Situation Timely, formed an
efficient risk management procedures, so as to ensure to lower the
operation risks to the maximum.
4. Market risk
The forward settlement of exchange is an important derivative
products transaction, which was significantly affected by the
exchange rate fluctuation due to its large amount. The Central Bank
decided to expand the fluctuation range of RMB exchange rate from
bidirectional 0.5% to bidirectional 1% since 16 Apr. 2012, which
would increase the difficulty in the operation of forward settlement
of exchange. Besides, if the RMB is devalued by a large margin on
the basis of the current situation before the contract is due, so then,
the larger losses shall incur in the contract on forward settlement of
exchange signed by the Company.
Risk analysis and precaution measure: Renminbi appreciated
significantly compared with that before the exchange rate reform,
but Renminbi internationalization would be a long-term goal, which
decided that Renminbi would not depreciated significantly.
Although the increased fluctuation range added the operation
difficulty, it provided a certain opportunity, which required relevant
personnel of the Company actively master the market trend,
carefully operate and hold positive opportunity, so as to try the best
to reduce the market risks under the condition of increased market
difficulty.
1. Up to 30 Sept. 2012, the Company held 31 undue financial
derivative product contracts, totaled US$ 246 million, of which
there were 30 forward settlement contracts valuing US$ 240 million;
1 forward purchase foreign exchange contract valuing US$ 6 million
(all due before Mar. 2013). The above financial derivative products
accounted for 30.34% of the closing net assets attributable to
Changes of market prices or fair values in the reporting period shareholders of the Company.
of the invested derivatives. And the analysis on the fair value 2. From Jan. 2012 to Sept. 2012, the due financial derivative
of the derivatives should include the specific use methods and products of the Company totally equaled to US$ 516,003,200, of
the relevant assumptions and parameters. which US$ 376,003,200 was actually delivered and the gain
generated was RMB 20,145,300. The due forward settlement was
US$ 459.5 million, of which US$ 319.5 million was delivered as
scheduled, generating gain of RMB 19,759,500; US$ 140 million
was extended; and the due forward foreign exchange trading amount
equaled to US$ 56,503,200, which was all delivered as scheduled
and generated gain of RMB 385,800.
Whether significant changes occurred to the Company’s
accounting policy and specific accounting principles of
Unchanged
derivatives in the reporting period compared to the previous
reporting period
Specific opinion from independent directors on the Concerning the Company’s derivative transactions, the Company’s
Company’s derivatives investment and risk control independent directors Zhou Zhiji, Hong Xiaobin, Qi Haodong, Bi
8
Xiuli and Wang Lei issued their professional opinions as follows:
1. Up to 30 Sept. 2012, the Company held 31 undue financial
derivative product contracts, totaled US$ 246 million, of which
there were 30 forward settlement contracts valuing US$ 240 million;
1 forward purchase foreign exchange contract valuing US$ 6 million
(all due before Mar. 2013). The above financial derivative products
accounted for 30.34% of the closing net assets attributable to
shareholders of the Company.
2. From Jan. 2012 to Sept. 2012, the due financial derivative
products of the Company totally equaled to US$ 516,003,200, of
which US$ 376,003,200 was actually delivered and the gain
generated was RMB 20,145,300. The due forward settlement was
US$ 459.5 million, of which US$ 319.5 million was delivered as
scheduled, generating gain of RMB 19,759,500; US$ 140 million
was extended; and the due forward foreign exchange trading amount
equaled to US$ 56,503,200, which was all delivered as scheduled
and generated gain of RMB 385,800.
3. The Company conducted derivative investment transactions
according to the relevant approval procedure, which was in line with
relevant laws, regulations, the Company’s Articles of Association,
the Management Rules for Derivative Investment of Lu Thai Textile
Co., Ltd. and the Plan for Derivative Transactions in 2012 approved
at the First Special Session of the Shareholders’ General Meeting for
2012 on 5 Mar. 2012
4. The Company has formulated and improved the organizational
structure, business operation flow chart, approval flow chart and
other internal control rules for derivative transactions, which are
executed effectively.
5. On the basis of its normal operation, the Company used its own
funds to conduct derivative investment transactions, which could
help the Company avoid the risk of RMB exchange rate changes and
improve the Company’s resistance ability to exchange rate
fluctuations. Such a move of the Company would do no harm to the
interest of the Company and its shareholders.
6. In accordance with the Article 26 of the Memorandum of the
Shenzhen Stock Exchange for Information Disclosure - Derivative
Investment, the Company performed the relevant information
disclosure duty in its report for the third quarter of 2012.
To sum up, we were of the opinion that it would strengthen the
Company’s competitiveness to use derivative transactions with
focus on forward settlement and purchase as an effective tool to
avoid foreign exchange risks, to strengthen the relevant internal
control and to carry out the loss and risk prevention measures so as
to improve the operation and management. It was considered
feasible for the Company to conduct derivative transactions with
focus on forward settlement and purchase, and no harm was done to
interests of the Company’s shareholders.
3. Derivative investments held at the period-end
√Applicable □Inapplicable
Proportion of the closing
Opening contract amount Closing contract amount Gain or loss in the contract amount in the
Type of contract
(RMB Yuan) (RMB Yuan) reporting period closing net assets of the
Company (%)
Forward settlement and
purchase of exchange 3,367,888,570.00 1,559,936,250.00 20,145,338.49 30.34%
contract
Total 3,367,888,570.00 1,559,936,250.00 20,145,338.49 30.34%
4. Researches, visits and interviews received in the reporting period
Time of reception Place of reception Way of reception Visitor type Visitor Main discussion and
9
materials provided
by the Company
Deng Yafeng from
Shanghai Chaos
Reception Room of Basic information
12 Jan. 2012 Field research Institution Daoran Asset
the Company about the Company
Management Co.,
Ltd.
Zhao Bing and Zhao
Reception Room of Basic information
12 Jan. 2012 Field research Institution Duo from Sealand
the Company about the Company
Securities Co., Ltd.
Wang Bing and Xu
Reception Room of Wenfeng from Basic information
12 Jan. 2012 Field research Institution
the Company Rising Securities about the Company
Co., Ltd.
Zhou Ying and
Huang Ruiqing from
Reception Room of Basic information
12 Jan. 2012 Field research Institution Caitong Fund
the Company about the Company
Management Co.,
Ltd.
Dong Lanfeng from
Reception Room of Yinhua Fund Basic information
19 Jan. 2012 Field research Institution
the Company Management Co., about the Company
Ltd.
Reception Room of Jin Ge and Liu Bing Basic information
2 Feb. 2012 Field research Institution
the Company from CICC about the Company
Yuan Li and Ma Tao
Reception Room of Basic information
15 Feb. 2012 Field research Institution from GF Securities
the Company about the Company
Co., Ltd.
Shan Huijin from
Reception Room of China Asset Basic information
15 Feb. 2012 Field research Institution
the Company Management Co., about the Company
Ltd.
Gao Yuanyuan from
Reception Room of ICBC Credit Suisse Basic information
15 Feb. 2012 Field research Institution
the Company Asset Management about the Company
Co., Ltd.
5. Corporate bonds issued
Any corporate bonds issued?
□ Yes √ No
IV. Appendix
(I) Financial statements
Consolidated statements or not?
√ Yes □ No □ Inapplicable
The currency unit for data of the financial statements below is RMB Yuan unless otherwise specified.
1. Consolidated balance sheet
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Balance as at 30 Sept. 2012 Balance as at 30 Jun. 2012
Current Assets:
Monetary funds 498,070,581.88 811,148,146.93
Transactional financial assets 6,321,347.70 20,939,380.00
10
Notes receivable 131,037,353.44 160,499,797.76
Accounts receivable 171,519,752.82 201,327,903.05
Accounts paid in advance 151,219,291.17 304,469,373.14
Interest receivable
Dividend receivable
Other accounts receivable 127,434,551.45 74,534,378.60
Financial assets purchased under
agreements to resell
Inventories 1,728,513,630.12 1,666,911,255.92
Non-current assets due within 1 year
Other current assets
Total current assets 2,814,116,508.58 3,239,830,235.40
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 67,442,600.00 68,942,600.00
Investing property
Fixed assets 4,065,694,194.07 3,486,072,973.42
Construction in progress 297,561,248.81 502,165,921.54
Engineering materials 43,492,287.45 39,746,597.82
Disposal of fixed assets
Intangible assets 323,498,678.61 309,099,281.13
R&D expense
Goodwill 20,613,803.29 20,563,803.29
Long-term deferred expenses
Deferred income tax assets 54,128,404.12 60,061,475.83
Other non-current assets 7,890,690.00 25,402,452.00
Total of non-current assets 4,880,321,906.35 4,512,055,105.03
Total assets 7,694,438,414.93 7,751,885,340.43
Current liabilities:
Short-term borrowings 1,145,243,257.70 1,151,414,422.38
Transactional financial liabilities
Notes payable 16,230,868.14 11,981,603.44
Accounts payable 327,765,270.15 284,362,673.51
Accounts received in advance 97,331,403.74 91,026,359.71
Employee’s compensation payable 338,368,656.34 435,106,415.39
Tax payable 5,657,428.35 30,576,451.34
Interest payable 3,409,471.91 2,113,143.22
Dividend payable 459,109.44 442,309.44
Other accounts payable 138,850,353.63 110,780,795.92
Non-current liabilities due within 1 year 17,257,250.00 69,058,740.00
Other current liabilities
Total current liabilities 2,090,573,069.40 2,186,862,914.35
Non-current liabilities:
Long-term borrowings 12,675,030.00
Long-term payables 9,735,560.00 9,735,560.00
11
Deferred income tax liabilities 3,088,552.41 5,262,675.09
Other non-current liabilities 66,425,915.61 67,441,604.49
Total non-current liabilities 79,250,028.02 95,114,869.58
Total liabilities 2,169,823,097.42 2,281,977,783.93
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 1,008,954,800.00 1,008,954,800.00
Capital reserves 1,243,637,832.04 1,200,110,642.06
Less: Treasury stock 167,604,401.19
Surplus reserves 515,895,752.76 515,895,752.76
Retained profits 2,546,001,430.11 2,367,189,767.76
Foreign exchange difference -5,709,397.31 -6,050,509.48
Total equity attributable to owners of the
5,141,176,016.41 5,086,100,453.10
Company
Minority interests 383,439,301.10 383,807,103.40
Total owners’ (or shareholders’) equity 5,524,615,317.51 5,469,907,556.50
Total liabilities and owners’ (or
7,694,438,414.93 7,751,885,340.43
shareholders’) equity
Legal representative: Liu Shizhen Person-in-charge of the accounting work: Zhang Hongmei
Chief of the accounting division: Zhang Keming
2. Balance sheet of the Company
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Balance as at 30 Sept. 2012 Balance as at 30 Jun. 2012
Current Assets:
Monetary funds 299,641,817.38 443,347,389.73
Transactional financial assets 5,382,918.70 15,609,030.00
Notes receivable 114,784,229.95 123,468,955.42
Accounts receivable 202,319,835.06 286,596,629.41
Accounts paid in advance 149,563,107.73 390,452,279.69
Interest receivable
Dividend receivable
Other accounts receivable 66,677,255.80 36,382,500.69
Inventories 1,096,145,890.24 1,089,685,685.73
Non-current assets due within 1 year
Other current assets
Total current assets 1,934,515,054.86 2,385,542,470.67
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 1,101,936,804.88 1,063,495,189.90
Investing property
Fixed assets 2,438,572,204.88 2,216,930,369.90
Construction in progress 165,239,100.65 139,596,130.53
Engineering materials 43,329,894.29 37,171,903.43
12
Disposal of fixed assets
Intangible assets 192,845,892.25 176,687,021.73
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 30,562,562.79 30,180,069.34
Other non-current assets 7,890,690.00 25,402,452.00
Total of non-current assets 3,980,377,149.74 3,689,463,136.83
Total assets 5,914,892,204.60 6,075,005,607.50
Current liabilities:
Short-term borrowings 622,039,819.90 687,511,722.38
Transactional financial liabilities
Notes payable 9,300,868.14 9,531,302.09
Accounts payable 155,200,281.92 91,559,699.03
Accounts received in advance 43,690,015.75 41,115,833.49
Employee’s compensation payable 291,442,960.84 379,732,952.85
Tax payable 36,322,073.43 44,571,730.86
Interest payable 2,345,364.68 2,113,143.22
Dividend payable 459,109.44 442,309.44
Other accounts payable 19,020,618.89 16,585,657.28
Non-current liabilities due within 1 year 17,257,250.00 69,058,740.00
Other current liabilities
Total current liabilities 1,197,078,362.99 1,342,223,090.64
Non-current liabilities:
Long-term borrowings 12,675,030.00
Long-term payables
Estimated liabilities
Deferred income tax liabilities 807,437.81 2,341,354.50
Other non-current liabilities 31,988,546.56 32,494,901.59
Total non-current liabilities 32,795,984.37 47,511,286.09
Total liabilities 1,229,874,347.36 1,389,734,376.73
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 1,008,954,800.00 1,008,954,800.00
Capital reserves 1,249,990,513.13 1,206,463,323.15
Less: Treasury stock 167,604,401.19
Surplus reserves 515,895,752.76 515,895,752.76
Retained profits 2,077,781,192.54 1,953,957,354.86
Foreign exchange difference
Total owners’ (or shareholders’) equity 4,685,017,857.24 4,685,271,230.77
Total liabilities and owners’ (or
5,914,892,204.60 6,075,005,607.50
shareholders’) equity
Legal representative: Liu Shizhen Person-in-charge of the accounting work: Zhang Hongmei
Chief of the accounting division: Zhang Keming
3. Consolidated income statement for the reporting period
Prepared by Lu Thai Textile Co., Ltd.
13
Unit: RMB Yuan
Item Jul.-Sept. 2012 Jul.-Sept. 2011
I. Total operating revenues 1,398,771,930.43 1,483,566,032.99
Including: Sales income 1,398,771,930.43 1,483,566,032.99
II. Total operating cost 1,234,138,524.76 1,230,292,674.90
Including: Cost of sales 1,025,358,240.45 1,012,327,690.00
Business taxes and surcharges 9,931,184.90 17,419,527.01
Selling and distribution expenses 41,772,534.98 37,155,185.35
Administrative expenses 144,692,946.98 154,597,082.53
Financial expenses 15,309,785.44 10,467,508.48
Asset impairment loss -2,926,167.99 -1,674,318.47
Add: Gain/(loss) from change in fair value
16,428,997.70 1,895,055.00
(“-” means loss)
Gain/(loss) from investment (“-”
543,700.00 14,879,900.00
means loss)
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 181,606,103.37 270,048,313.09
Add: non-operating income 6,299,925.96 5,543,864.18
Less: non-operating expense 1,417,101.47 3,463,627.25
Including: loss from non-current
30,679.93 1,039,001.06
asset disposal
IV. Total profit (“-” means loss) 186,488,927.86 272,128,550.02
Less: Income tax expense 28,078,150.98 45,355,704.85
V. Net profit (“-” means loss) 158,410,776.88 226,772,845.17
Attributable to owners of the
159,815,718.16 225,012,704.00
Company
Gains/losses of minority shareholders -1,404,941.28 1,760,141.17
VI. Earnings per share -- --
(I) Basic earnings per share 0.16 0.23
(II) Diluted earnings per share 0.16 0.23
VII. Other comprehensive incomes 133,122.26 -654,686.42
VIII. Total comprehensive incomes 158,543,899.14 226,118,158.75
Attributable to owners of the
159,948,840.42 224,358,017.58
Company
Attributable to minority shareholders -1,404,941.28 1,760,141.17
Where business mergers under the same control occurred in this reporting period, the net profit achieved by the merged parties before
the business mergers was RMB 0.
Legal representative: Liu Shizhen Person-in-charge of the accounting work: Zhang Hongmei
Chief of the accounting division: Zhang Keming
4. Income statement of the Company for the reporting period
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Jul.-Sept. 2012 Jul.-Sept. 2011
I. Total sales 1,104,690,533.54 1,253,073,223.08
Less: cost of sales 809,243,308.96 895,692,345.48
Business taxes and surcharges 9,017,860.60 14,410,854.40
14
Distribution expenses 14,857,809.51 16,665,839.07
Administrative expenses 107,957,950.39 121,480,380.13
Financial costs 6,683,900.73 644,912.97
Impairment loss -2,100,700.89 -1,969,523.71
Add: gain/(loss) from change in fair
14,471,618.70 850,380.00
value (“-” means loss)
Gain/(loss) from investment (“-”
35,171,514.98 12,853,400.00
means loss)
II. Business profit (“-” means loss) 208,673,537.92 219,852,194.74
Add: non-business income 2,589,163.44 4,758,424.40
Less: non-business expense 295,197.62 2,260,338.38
Including: loss from non-current
24,617.74 31,446.80
asset disposal
III. Total profit (“-” means loss) 210,967,503.74 222,350,280.76
Less: income tax expense 23,280,045.49 33,503,948.49
IV. Net profit (“-” means loss) 187,687,458.25 188,846,332.27
V. Earnings per share -- --
(I) Basic earnings per share 0.18 0.19
(II) Diluted earnings per share 0.18 0.19
VI. Other comprehensive income
VII. Total comprehensive income 187,687,458.25 188,846,332.27
Legal representative: Liu Shizhen Person-in-charge of the accounting work: Zhang Hongmei
Chief of the accounting division: Zhang Keming
5. Consolidated income statement from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Total operating revenues 4,206,797,495.19 4,464,379,130.19
Including: Sales income 4,206,797,495.19 4,464,379,130.19
II. Total operating cost 3,690,064,019.10 3,607,886,092.01
Including: Cost of sales 3,080,464,968.97 2,979,098,155.74
Taxes and associate charges 12,292,119.83 27,603,473.30
Selling and distribution expenses 118,932,826.07 106,805,780.83
Administrative expenses 426,096,718.56 457,468,203.51
Financial expenses 52,047,616.39 35,387,456.57
Asset impairment loss 229,769.28 1,523,022.06
Add: Gain/(loss) from change in fair
-14,618,032.30 -18,733,931.72
value (“-” means loss)
Gain/(loss) from investment (“-”
19,596,338.49 55,348,967.77
means loss)
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 521,711,782.28 893,108,074.23
Add: non-operating income 26,452,868.03 21,676,511.86
Less: non-operating expense 3,559,910.03 14,733,777.72
Including: loss from non-current
657,200.55 9,249,096.93
asset disposal
15
IV. Total profit (“-” means loss) 544,604,740.28 900,050,808.37
Less: Income tax expense 77,844,369.77 148,134,647.59
V. Net profit (“-” means loss) 466,760,370.51 751,916,160.78
Attributable to owners of the Company 461,319,006.35 716,659,769.96
Minority shareholders’ income 5,441,364.16 35,256,390.82
VI. Earnings per share -- --
(I) Basic earnings per share 0.46 0.72
(II) Diluted earnings per share 0.46 0.72
VII. Other comprehensive incomes 341,112.17 199,755.89
VIII. Total comprehensive incomes 467,101,482.68 752,115,916.67
Attributable to owners of the
461,660,118.52 716,859,525.85
Company
Attributable to minority shareholders 5,441,364.16 35,256,390.82
Where business mergers under the same control occurred from 1 Jan. 2012 to 30 Sept. 2012, the net profit achieved by the merged
parties before the business mergers was RMB 0.
Legal representative: Liu Shizhen Person-in-charge of the accounting work: Zhang Hongmei
Chief of the accounting division: Zhang Keming
6. Income statement of the Company from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Total sales 3,301,306,015.59 3,699,110,303.48
Less: cost of sales 2,488,425,975.64 2,554,814,764.34
Business taxes and surcharges 9,176,999.11 21,427,438.98
Distribution expenses 44,805,496.22 41,192,622.84
Administrative expenses 314,274,476.87 355,585,477.43
Financial costs 22,261,994.38 4,607,584.62
Impairment loss -273,666.92 1,833,529.77
Add: gain/(loss) from change in fair
-10,226,111.30 -17,303,306.72
value (“-” means loss)
Gain/(loss) from investment (“-”
49,626,749.47 211,443,467.77
means loss)
II. Business profit (“-” means loss) 462,035,378.46 913,789,046.55
Add: non-business income 13,024,305.73 9,125,918.66
Less: non-business expense 649,987.36 10,860,526.73
Including: loss from non-current
26,377.61 5,801,925.69
asset disposal
III. Total profit (“-” means loss) 474,409,696.83 912,054,438.48
Less: income tax expense 68,078,515.15 109,648,111.24
IV. Net profit (“-” means loss) 406,331,181.68 802,406,327.24
V. Earnings per share -- --
(I) Basic earnings per share 0.4 0.81
(II) Diluted earnings per share 0.4 0.81
VI. Other comprehensive income 1,570,000.00
VII. Total comprehensive income 406,331,181.68 803,976,327.24
16
Legal representative: Liu Shizhen Person-in-charge of the accounting work: Zhang Hongmei
Chief of the accounting division: Zhang Keming
7. Consolidated cash flow statement from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Cash flows from operating activities:
Cash received from sale of commodities
4,107,295,281.30 4,481,585,423.26
and rendering of service
Tax refunds received 125,546,066.56 193,331,421.72
Other cash received relating to operating
43,373,629.01 63,060,906.00
activities
Subtotal of cash inflows from operating
4,276,214,976.87 4,737,977,750.98
activities
Cash paid for goods and services 2,319,321,904.77 2,683,764,197.49
Cash paid to and for employees 837,281,504.97 729,048,411.27
Various taxes paid 176,239,257.42 222,115,998.92
Other cash payment relating to operating
211,075,485.74 190,662,666.44
activities
Subtotal of cash outflows from operating
3,543,918,152.90 3,825,591,274.12
activities
Net cash flows from operating activities 732,296,823.97 912,386,476.86
II. Cash flows from investing activities:
Cash received from withdrawal of
investments
Cash received from return on
investments
Net cash received from disposal of fixed
assets, intangible assets and other 1,378,946.15 2,083,765.33
long-term assets
Net cash received from disposal of
951,000.00
subsidiaries or other business units
Other cash received relating to investing
23,511,937.33 60,001,566.53
activities
Subtotal of cash inflows from investing
25,841,883.48 62,085,331.86
activities
Cash paid to acquire fixed assets,
536,263,924.65 354,126,661.31
intangible assets and other long-term assets
Cash paid for investment
Net cash paid to acquire subsidiaries and
50,000.00
other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from investing
536,313,924.65 354,126,661.31
activities
Net cash flows from investing activities -510,472,041.17 -292,041,329.45
III. Cash Flows from Financing Activities:
Cash received from capital contributions 19,249,218.56 70,802,250.00
Including: Cash received from minority
shareholder investments by subsidiaries
Cash received from borrowings 1,316,561,060.88 1,121,885,167.43
17
Cash received from issuance of bonds
Other cash received relating to financing
36,000,000.00 107,790,000.00
activities
Subtotal of cash inflows from financing
1,371,810,279.44 1,300,477,417.43
activities
Repayment of borrowings 1,390,227,588.90 1,142,503,972.99
Cash paid for interest expenses and
343,326,414.61 282,390,869.34
distribution of dividends or profit
Including: dividends or profit paid by
subsidiaries to minority shareholders
Other cash payments relating to
175,904,401.19 20,460,000.00
financing activities
Sub-total of cash outflows from financing
1,909,458,404.70 1,445,354,842.33
activities
Net cash flows from financing activities -537,648,125.26 -144,877,424.90
IV. Effect of foreign exchange rate
2,745,777.41 -2,683,967.79
changes on cash and cash equivalents
V. Net increase in cash and cash
-313,077,565.05 472,783,754.72
equivalents
Add: Opening balance of cash and cash
811,148,146.93 522,955,236.37
equivalents
VI. Closing balance of cash and cash
498,070,581.88 995,738,991.09
equivalents
Legal representative: Liu Shizhen Person-in-charge of the accounting work: Zhang Hongmei
Chief of the accounting division: Zhang Keming
8. Cash flow statement of the Company from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Cash flows from operating activities:
Cash received from sale of commodities
3,381,590,117.40 3,658,909,852.77
and rendering of service
Tax refunds received 82,373,642.84 145,528,035.36
Other cash received relating to operating
12,518,689.73 35,644,777.16
activities
Subtotal of cash inflows from operating
3,476,482,449.97 3,840,082,665.29
activities
Cash paid for goods and services 1,858,985,788.02 2,319,678,241.68
Cash paid to and for employees 647,634,486.61 576,809,098.53
Various taxes paid 98,433,076.87 130,202,880.89
Other cash payment relating to operating
102,031,275.37 103,351,891.51
activities
Subtotal of cash outflows from operating
2,707,084,626.87 3,130,042,112.61
activities
Net cash flows from operating activities 769,397,823.10 710,040,552.68
II. Cash flows from investing activities:
Cash received from retraction of
investments
Cash received from return on
25,000,000.00
investments
18
Net cash received from disposal of fixed
assets, intangible assets and other 978,946.15 2,076,735.72
long-term assets
Net cash received from disposal of
951,000.00
subsidiaries or other business units
Other cash received relating to investing
17,504,139.16 50,621,898.51
activities
Subtotal of cash inflows from investing
44,434,085.31 52,698,634.23
activities
Cash paid to acquire fixed assets,
317,222,587.89 165,265,464.41
intangible assets and other long-term assets
Cash paid for investment 39,941,614.98
Net cash paid to acquire subsidiaries and
other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from investing
357,164,202.87 165,265,464.41
activities
Net cash flows from investing activities -312,730,117.56 -112,566,830.18
III. Cash flows from financing activities:
Cash received from capital
70,802,250.00
contributions
Cash received from borrowings 559,030,956.56 635,421,850.55
Cash received from issuance of bonds
Other cash received relating to
82,790,000.00
financing activities
Subtotal of cash inflows from financing
559,030,956.56 789,014,100.55
activities
Repayment of borrowings 690,702,932.18 673,671,836.31
Cash paid for interest expenses and
302,289,518.99 267,046,504.87
distribution of dividends or profit
Other cash payments relating to
167,604,401.19
financing activities
Sub-total of cash outflows from financing
1,160,596,852.36 940,718,341.18
activities
Net cash flows from financing activities -601,565,895.80 -151,704,240.63
IV. Effect of foreign exchange rate
1,192,617.91 277,815.28
changes on cash and cash equivalents
V. Net increase in cash and cash
-143,705,572.35 446,047,297.15
equivalents
Add: Opening balance of cash and
443,347,389.73 280,772,869.89
cash equivalents
VI. Closing balance of cash and cash
299,641,817.38 726,820,167.04
equivalents
Legal representative: Liu Shizhen Person-in-charge of the accounting work: Zhang Hongmei
Chief of the accounting division: Zhang Keming
(II) Audit report
Auditor’s opinion Un-audited
Summary of audit report
19