Abstract of the 2015 Semi-annual Report of Luthai Textile Co., Ltd.
Stock code: 000726, 200726 Stock abbreviation: LTA, LTB Announcement No.: 2015-034
Luthai Textile Co., Ltd.
Abstract of the 2015 Semi-annual Report
1. Important reminders
This abstract is based on the full text of the semi-annual report. For more details, investors are suggested to read the full text
disclosed at the same time with this abstract on http://www.cninfo.com.cn, the website of Shenzhen Stock Exchange or any other
website designated by CSRC.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version
shall prevail.
Company profile
Stock abbreviation LTA, LTB Stock code 000726, 200726
Stock abbreviation after change (if
N/A
any)
Stock exchange listed with Shenzhen Stock Exchange
Contact information Company Secretary Securities Affairs Representative
Name Qin Guiling Zheng Weiyin
Tel. 0533-5266188 0533-5285166
Fax 0533-5418805；5282188-234 0533-5418805
E-mail qinguiling@lttc.com.cn wyzheng@lttc.com.cn
2. Financial highlights and change of shareholders
（1）Financial highlights
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or
correction of any accounting error?
□ Yes √ No
Reporting period Same period of last year YoY +/-（％）
Operating revenues (RMB Yuan) 2,941,835,897.16 3,114,226,581.62 -5.54%
Net profit attributable to shareholders of
344,521,516.72 476,880,256.93 -27.76%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains and 308,604,457.41 475,996,558.52 -35.17%
losses (RMB Yuan)
Net cash flows from operating activities
362,304,624.13 399,042,563.87 -9.21%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.36 0.50 -28.00%
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Abstract of the 2015 Semi-annual Report of Luthai Textile Co., Ltd.
Diluted EPS (RMB Yuan/share) 0.36 0.50 -28.00%
Weighted average ROE (%) 5.10% 7.81% -2.71%
As at the end of the
As at the end of last year +/-（％）
reporting period
Total assets (RMB Yuan) 8,585,633,117.13 8,627,671,393.88 -0.49%
Net assets attributable to shareholders of
6,456,030,484.38 6,588,772,245.55 -2.01%
the Company (RMB Yuan)
（2） Shareholdings of the top 10 common shareholders
Unit: share
Total number of common
shareholders at the end of the 82,035
reporting period
Shareholdings of the top 10 common shareholders
Total Pledged or frozen
Sharehol Number of
common shares
ding restricted
Name of shareholder Nature of shareholder shares held Status
percenta common Number of
at the of
ge (%) shares held shares
period-end shares
Domestic
ZIBO LUCHENG TEXTILE INVESTMENT Pledge
non-state-owned 14.69% 140,353,583 13,000,000
CO., LTD. d
corporation
TAILUN (THAILAND) TEXTILE CO., LTD. Foreign corporation 12.37% 118,232,400 118,232,400
LYNAS ASIA FUND Foreign corporation 1.76% 16,864,475
VALUE PARTNERS HIGH-DIVIDEND
Foreign corporation 1.72% 16,411,865
STOCKS FUNDS
T.ROWE PRICE INTL DISCOVERY FUND Foreign corporation 1.70% 16,213,718
NATIONAL WESTMINSTER BANK PLC AS
DEP OF FS GREATER CHINA GROWTH Foreign corporation 0.96% 9,211,092
FUND
DBS VICKERS (HONG KONG) LTD A/C
Foreign corporation 0.95% 9,105,723
CLIENTS
FIRST STATE CHINA A SHARES FUND Foreign corporation 0.86% 8,231,549
VALUE PARTNERS CLASSIC FUND Foreign corporation 0.85% 8,156,383
Domestic
HUA AN NEW SILK ROAD THEME EQUITY
non-state-owned 0.84% 8,016,900
SECURITIES INVESTMENT FUNDS
corporation
Explanation on associated relationship or persons acting in concert Zibo Lucheng Textile Investment Co., Ltd. is the largest
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Abstract of the 2015 Semi-annual Report of Luthai Textile Co., Ltd.
among the above-mentioned shareholders shareholder of the Company and the actual controller.
Tailun (Thailand) Textile Co., Ltd. is the second largest
shareholder as well as sponsor of foreign capital of the
Company. All of other shareholders are people holding
circulating A share or circulating B share and the
Company is not able to confirm whether there is
associated relationship or concerted action among other
shareholders.
Shareholders taking part in securities margin trading (if any) None
（3）Shareholdings by the top 10 preference shareholders
□ Applicable √ Inapplicable
No preference shareholders in the reporting period.
（4）Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
The controlling shareholder did not change in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Inapplicable
The actual controller did not change in the reporting period.
3. Discussion and analysis by the management
In the first half of 2015, most textile enterprises operated steadily, but the environment for the industry was still harsh with a
decreased export volume of textiles and garments, a weak domestic demand and rising costs of production factors. All these together
with the depreciation in foreign currencies such as the Yen and the Euro created various unfavorable impacts on export-oriented
textile enterprises. Under the circumstances, we continued to deepen our excellent performance management model, vigorously
promoted our Lu Thai Production System (LTPS), proactively carried forward our global planning, accelerated the industrial and
informatization fusion, and enhanced corporate culture improvement. As a result, despite a drop in our operating results for the first
half of the year, we managed to maintain a healthy and steady development trend.
For the reporting period, the Company achieved operating revenues of RMB 2.942 billion, operating profit of RMB 407 million, net
profit attributable to common share holders of RMB 345 million and net profit attributable to shareholders of the Company of RMB
309 million after deducting extraordinary gains and losses, down 5.54%, 26.38%, 27.76% and 35.17% respectively from the same
period of last year.
During the reporting period, there were no change in the main business of the Company, main profit source and composition.
Within the reporting period, the Company gave to full play of its technical accumulation and brand advantage in yarn dyeing sector,
integrated advantageous resources from home and abroad highly efficiently, circumvented potential trade barriers effectively,
improved its global production scale and maintained its leading position in global yarn dyeing sector. The Company decided to
establish Lutai (Vietnam) Co., Ltd, with its planned production scale of 60,000 spindles of spun yarn and 30 million meters of
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Abstract of the 2015 Semi-annual Report of Luthai Textile Co., Ltd.
yarn-dyed fabric, and the project has entered the process of basic construction currently.
Within the reporting period, the Company was appraised as a Pilot Enterprise for Informatization Renovation and Improvement in
Textile Industry by China National Textile and Apparel Council and Information Promotion Division of the Ministry of Industry and
Information Technology respectively. It was awarded as a Five-star Enterprise for Performing Social Responsibilities of Chinese
Industrial Enterprises at the Press Conference of 2015 Enterprise Social Responsibility Report in Chinese Industrial Economics
Industry organized by United Nations Industrial Development Organization and China Federation of Industrial Economics，appraised
as one of top 100 enterprises in garment industry of China in 2014 by China National Garment Association, appraised a
Demonstration Base of Nationwide Enterprise Culture Construction by China Research Institute of Enterprise Culture, awarded a
Labor Certificate of Merit for Enriching People and Rejuvenating Shandong by Shandong Province Federation of Trade Unions and
appraised as one of Ten Best Elderly Respecting Enterprises of Shandong by Shandong Aging Industry Development Foundation.
Within the reporting period, facing with the severe international and domestic market situations, the Company insisted on
practicing its skills, conducted scientific and technological innovations continuously, studied new technologies and new techniques
constantly, and enhanced customer promotion and services and its market acceptance and customer recognition have been
increased dramatically. The complete set of technologies and equipment for digital automatic bobbin dyeing developed jointly by
the Company with China Academy of Machinery Science and Technology and Shandong Companion Group was awarded the first
prize of National Scientific and Technological Progress. By the end of the reporting period, the Company had 209 patent
applications that had been agreed for handling, of which 68 were invention patents, 134 were utility model patents and 7 were
appearance design patents. 144 patents were awarded formally, of which 21 were invention patents, 116 were utility model
patents and 7 were appearance design patents. Accumulatively 34 state-level, provincial-level and ministerial-level prizes were
awarded, of which 1 was first prize and 2 were second prize of national scientific and technological progress, 9 won prize of
provincial scientific and technological progress, of which 4 were first prize, 2 were second prize; 22 won prize of scientific and
technological progress of China National Textile And Apparel Council, of which 3 were first prize and 9 were second prize. It
undertook 8 scientific and technological plans of provincial or ministerial level and 9 major research programs of state level or
provincial or ministerial level, and participated or hosted in enacting 21 standards, of which 5 were national standards and 16 were
industrial standards.
Within the reporting period, the Company promoted its brand construction and marketing network construction continuously. The
successful launch of Beijing Lutai Youxian E-Commerce Co., Ltd, its subsidiary and UTAILOR, its high-end tailoring platform
(www.utailor.com.cn), completed a seamless connection from offline cutting one’s coat according to his cloth to online one-button
tailoring. Depending on our advantages in manufacturing technologies in the whole industrial chain and quality assurance, we
provided shirts that were of high performance-price ratio and personalized design and excellent services. In terms of fabrics of shirts,
within the reporting period, our designers, together with designers from Milan, launched nearly 3000 styles, and recommended to
clients in the markets of United States, Asia and Europe. To give to full play of the advantage and role of Milan Design Center, we
established good partnership with clients through holding product recommendation meetings in Shanghai, Milan and the United
States, and market share of our self-reliantly designed fabrics was improved. In terms of shirts, within the reporting period, we set up
a pattern study team for research and improvement of patterns to ensure garment samples to be more fit to body.
Now, the Company has developed a product system that majored natural fiber materials, led by multicomponent fiber material, cored
by ironing-free technology, oriented by world’s fashionable consumption and concentrated on functional health, to satisfy
personalized and diversified market demands.
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Abstract of the 2015 Semi-annual Report of Luthai Textile Co., Ltd.
4. Matters related to financial reporting
(1) Explain any changes in the accounting policies, accounting estimates and measurement methods as
compared with the financial reporting of last year
□ Applicable √ Inapplicable
No such cases in the reporting period.
(2) Explain any retrospective restatement due to correction of significant accounting errors in the reporting
period
□ Applicable √ Inapplicable
No such cases in the reporting period.
(3) Explain any changes in the consolidation scope as compared with the financial reporting of last year
√ Applicable □ Inapplicable
Luthai (Vietnam) was incorporated in the reporting period as a wholly-funded subsidiary of the Company’s wholly-funded subsidiary
Luthai (Hong Kong).
(4) Explanation of the Board of Directors and the Supervisory Committee concerning the “non-standard
audit report” issued by the CPAs firm for the reporting period
□ Applicable √ Inapplicable
Board Chairman: Liu Shizhen
Luthai Textile Co., Ltd.
27 August 2015
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