Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
LU THAI TEXTILE CO., LTD.
Report for the Third Quarter of 2015
October 2015
1
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
Section I. Important Reminders
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management
staff of Lu Thai Textile Co., Ltd. (hereinafter referred to as “the Company”) warrant that this report is factual,
accurate and complete without any false record, misleading statement or material omission. And they shall be
jointly and severally liable for that.
Liu Shizhen, company principal, Zhang Hongmei, chief of the accounting work, and Zhang Keming, chief of the
accounting organ (chief of accounting), hereby confirm that the Financial Report enclosed in this report is factual,
accurate and complete.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
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Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
Section II. Financial Highlights & Change of Shareholders
I. Major accounting data and financial indexes
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
30 Sept. 2015 31 Dec. 2014 Increase/decrease (%)
Total assets (RMB Yuan) 8,829,506,971.03 8,627,671,393.88 2.34%
Net assets attributable to shareholders
6,676,069,664.40 6,588,772,245.55 1.32%
of the Company (RMB Yuan)
YoY increase/decrease YoY
Jul.-Sept. 2015 Jan.-Sept. 2015
(%) increase/decrease (%)
Operating revenues (RMB Yuan) 1,569,500,236.21 7.55% 4,511,336,133.37 -1.36%
Net profit attributable to shareholders of
204,342,167.24 -12.40% 548,863,683.96 -22.71%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains 188,913,906.19 -3.37% 497,518,363.60 -25.91%
and losses (RMB Yuan)
Net cash flows from operating activities
-- -- 833,510,131.79 -1.08%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.21 -12.50% 0.57 -22.97%
Diluted EPS (RMB Yuan/share) 0.21 -12.50% 0.57 -22.97%
Weighted average ROE (%) 2.89% -0.56% 7.99% -3.27%
Items and amounts of extraordinary gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Item Amount as of Jan.-Sept. 2015 Note
Gains/losses on the disposal of non-current assets (including the offset part of asset
-2,799,179.00
impairment provisions)
Government grants recognized in the current period, except for those acquired in the
ordinary course of business or granted at certain quotas or amounts according to the 47,595,882.23
country’s unified standards
Gains and losses on change in fair value from tradable financial assets and tradable
financial liabilities, as well as investment income from disposal of tradable financial
20,476,085.69
assets and tradable financial liabilities and financial assets available for sales, except
for effective hedging related with normal businesses of the Company
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Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
Non-operating incomes and expenses other than the above 2,602,829.18
Less: Income tax effects 12,471,948.08
Minority interests effects (after tax) 4,058,349.66
Total 51,345,320.36 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
There was no such situation of the Company during the reporting period.
II. Total number of shareholders and shareholdings of the top ten shareholders at the
period-end
1. Total number of common shareholders and shareholdings of the top ten common shareholders at the
period-end
Unit: share
Total number of common
74,991
shareholders at the period-end
Shareholdings of the top ten common shareholders
Pledged or frozen
Shareholdi shares
Number of Number of
ng Num
Name of shareholder Nature of shareholder the shares restricted shares
percentage Status of ber of
held held
(%) shares share
s
Domestic
Zibo Lucheng Textile Investment Co., Ltd. non-state-owned 14.69% 140,353,583
corporation
Tailun Textile Co., Ltd. Foreign corporation 12.37% 118,232,400 118,232,400
State-owned
Central Huijin Investment Co., Ltd. 2.13% 20,315,300
corporation
T.ROWE PRICE INTL DISCOVERY
Foreign corporation 1.99% 18,972,618
FUND
LYNAS ASIA FUND Foreign corporation 1.72% 16,443,675
CHINA SECURITIES FINANCE State-owned
1.64% 15,679,091
CORPORATION LIMITED corporation
VALUE PARTNERS HIGH-DIVIDEND
Foreign corporation 1.46% 13,923,715
STOCKS FUNDS
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Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
HUA AN NEW SILK ROAD THEME Domestic
EQUITY SECURITIES INVESTMENT non-state-owned 1.06% 10,110,000
FUND corporation
NATIONAL WESTMINSTER BANK PLC
AS DEP OF FS GREATER CHINA Foreign corporation 0.96% 9,211,092
GROWTH FUND
VALUE PARTNERS CLASSIC FUND Foreign corporation 0.85% 8,156,383
Shareholdings of the top ten non-restricted common shareholders
Number of Type of shares
non-restricted
Name of shareholder
common shares held Type Number
at the period-end
RMB ordinary
Zibo Lucheng Textile Investment Co., Ltd. 140,353,583 140,353,583
share
RMB ordinary
Central Huijin Investment Co., Ltd. 20,315,300 20,315,300
share
Domestically
T.ROWE PRICE INTL DISCOVERY FUND 18,972,618 listed foreign 18,972,618
share
Domestically
LYNAS ASIA FUND 16,443,675 listed foreign 16,443,675
share
RMB ordinary
CHINA SECURITIES FINANCE CORPORATION LIMITED 15,679,091 15,679,091
share
Domestically
VALUE PARTNERS HIGH-DIVIDEND STOCKS FUNDS 13,923,715 listed foreign 13,923,715
share
HUA AN NEW SILK ROAD THEME EQUITY SECURITIES RMB ordinary
10,110,000 10,110,000
INVESTMENT FUND share
Domestically
NATIONAL WESTMINSTER BANK PLC AS DEP OF FS GREATER
9,211,092 listed foreign 9,211,092
CHINA GROWTH FUND
share
Domestically
VALUE PARTNERS CLASSIC FUND 8,156,383 listed foreign 8,156,383
share
RMB ordinary
First State China A share fund 8,010,206 8,010,206
share
Zibo Lucheng Textile Investment Co., Ltd. is the largest
Explanations about associated relationship or concerted action among
shareholder of the Company and the actual controller.
the above shareholders
Tailun (Thailand) Textile Co., Ltd. is the second largest
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Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
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.
Top ten non-restricted common shareholders taking part in margin
Naught
financing and securities lending (if any)
Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company carry out any agreed
buy-back in the reporting period?
□ Yes √ No
No shareholder of the Company carried out any agreed buy-back in the reporting period.
2. Total number of preferred share holders and shareholdings of the top ten preferred share holders at the
period-end
□ Applicable √ Inapplicable
Section III. Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting
period, as well as reasons for the changes
√ Applicable □ Inapplicable
(1) Monetary funds as at 30 Sept. 2015 stood at RMB 956,833,305.54, up 43.61% from the
year-beginning amount, mainly because the shares repurchase reserve funds had not paid.
(2) Notes receivable as at 30 Sept. 2015 stood at RMB 168,400,772.02, up 47.97% from the
year-beginning amount, mainly because the corresponding bank acceptance bills receivable and the
LC of the operating income increased at the reporting period.
(3) Interests receivable as at 30 Sept. 2015 stood at RMB 461,711.95, up 100.00% from the
year-beginning amount, mainly because the interests receivable increased at the reporting period.
(4) Other current assets as at 30 Sept. 2015 stood at RMB 24,641,973.01, up 376.88% from the
year-beginning amount, mainly because the VAT and the input tax to be deducted and the pre-paid
Income tax to be deducted increased.
(5) Engineering material as at 30 Sept. 2015 stood at RMB 31,577,585.24, up 58.79% from the
year-beginning amount, mainly because the equipments to be installed of the Lu Thai (Cambodia)
and the Lu Thai (Myanmar) increased.
(6) Long-term deferred expense as at 30 Sept. 2015 stood at RMB 73,791,208.53, up 160.57% from
the year-beginning amount, mainly because the land rentals of the Lu Thai (Vietnam), the Lu Thai
(Cambodia) and Lu Thai (Myanmar) newly increased.
(7) Short-term borrowings as at 30 Sept. 2015 stood at RMB 749,720,308.36, up 44.89% from the
year-beginning amount, mainly because the short-term borrowings of the parent company
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Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
increased.
(8) Financial liabilities measured at fair value with changes recorded into current gains and losses as
at 30 Sept. 2015 stood at RMB 19,444,595.00, up 488.13% from the year-beginning amount,
mainly because the losses of the changes of the fair value of the forward foreign exchange
settlement at the period-end.
(9) Notes payable as at 30 Sept. 2015 stood at RMB 1,823,163.13, down 75.44% from the
year-beginning amount, mainly because the notes payable paid as expired.
(10) Accounts payable as at 30 Sept. 2015 stood at RMB 231,878,445.18, down 32.61% from the
year-beginning amount, mainly because the purchase amount of the raw materials payable at the
period-begin paid at the reporting period.
(11) Prepayments as at 30 Sept. 2015 stood at RMB 117,594,870.83, up 43.10% from the
year-beginning amount, mainly because the customer payment in advance increased.
(12) Interests payable as at 30 Sept. 2015 stood at RMB 1,305,403.16, up 155.27% from the
year-beginning amount, mainly because the increase of the borrowings of the parent company due
to the increase of the interests payable.
(13) Long-term borrowings as at 30 Sept. 2015 stood at RMB 0.00, down 100.00% from the
year-beginning amount, mainly because the transfer from the long-term borrowings at the
period-end to the non-current liabilities due within 1 year.
(14) Long-term accounts payable as at 30 Sept. 2015 stood at RMB 0.00, down 100.00% from the
year-beginning amount, mainly because the payment of the bond amount of the electric power at the
reporting period.
(15) Other comprehensive income as at 30 Sept. 2015 stood at RMB 7,770,092.57, up 192.06%
from the year-beginning amount, mainly because the changes of the exchange rate at the period-end
due to the increase of the revenue from the foreign currency statement translation.
(16) Financial expenses for Jan.-Sept. 2015 stood at RMB 15,616,968.80, up 48.73% year on year,
mainly because the losses of the exchange increased.
(17) Assets impairment losses for Jan.-Sept. 2015 stood at RMB 2,320,358.38, up 141.55% year on
year, mainly because the increase of the accounts receivable at the period-end due to the increase of
the assets impairment losses.
(18) Revenues from the changes of the fair value for Jan.-Sept. 2015 stood at RMB -16,138,395.00,
up 42.31% year on year, mainly because the financial assets delivered as expired which
correspondingly carried forward the originally recognized losses of the changes of the fair value and
the changes of the fair value of the financial assets at the reporting period.
(19) Investment revenue for Jan.-Sept. 2015 stood at RMB 36,614,480.69, up 47.04% year on year,
mainly because the revenue from the derivative investment increased.
II. Progress and influence of significant events, as well as the analysis and explanation on
solutions
√ Applicable □ Inapplicable
1. The Company held the 22nd Session of the 7th Board of Directors on 12 Jul., which reviewed and approved the Proposal on
Repurchasing Part of the Share A and Share B of the Company and at the same time issued the Preplan on Repurchasing Part of the
Share A and Share B of the Company as well as submitted the proposals above to the 1 st Extraordinary General Meeting of 2015 held
on 5 Aug. 2015, which reviewed and approved the Proposal on Repurchasing Part of the Share A and Share B of the Company. The
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Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
Company completed the relevant examination and approval and filing procedures on 10 Oct., and issued the Report about Lu Thai
Textile Co., Ltd. Repurchasing Part of the Share A and Share B of the Company. For the details, please refer to the relevant
announcements disclosed on the Securities Times, Shanghai Securities News, Ta Kung Pao and the www.cninfo.com.cn respectively
on 14 Jul. 2015, 6 Aug. 2015 and 10 Oct. 2015.
2. The major shareholders and the Directors, Supervisors as well as the Senior Executives of the Company had committed on 10 Jul.
that not to decrease the shareholding of the stocks of the Company within the future 6 months since 10 Jul., and for the details, please
refer to the relevant announcements disclosed on the Securities Times, Shanghai Securities News, Ta Kung Pao and the
www.cninfo.com.cn on 10 Jul. 2015.
Index to the relevant
Overview of the significant event Date of disclosure announcement disclosed on the
website
On 12 Jul. 2015, the Company held the 22nd Session of the 7th Board of
Directors, which reviewed and approved the Proposal on Repurchasing
Relevant announcements on
Part of the Share A and Share B of the Company and at the same time 14 Jul. 2015
www.cninfo.com.cn
issued the Preplan on Repurchasing Part of the Share A and Share B of
the Company.
On 5 Aug. 2015, the Company held the 1 st Extraordinary General
Relevant announcements on
Meeting of 2015, which reviewed and approved the Proposal on 6 Aug. 2015
www.cninfo.com.cn
Repurchasing Part of the Share A and Share B of the Company.
On 10 Oct. 2015, the Company completed the relevant examination and
approval and filing procedures and issued the Report about Lu Thai Relevant announcements on
10 Oct. 2015
Textile Co., Ltd. Repurchasing Part of the Share A and Share B of the www.cninfo.com.cn
Company.
III. Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the reporting period or such commitments carried down into the reporting period
√ Applicable □ Inapplicable
Time of
Commitment making Period of
Commitment Contents Fulfillment
maker commitme commitment
nt
Commitments made in a share reform
Commitments made in an acquisition report
or a report on equity changes
Commitments made in asset reorganization
Commitments made in the first public
offering or refinancing.
Zibo The biggest shareholder As the end of
Other commitments made to minority 10 Jul. 10 Jul. 2015 to
Lucheng Zibo Lucheng Textile the
shareholders 2015 10 Jan. 2016
Textile Investment Co., Ltd. and reporting
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Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
Investment the directors, supervisors period,
Co., Ltd. and and senior executives decreased
the directors, committed that the shares its holding
supervisors of the Company held by of shares
and senior them would not be of the
executives decreased from 10 Jul. Company
2015 to the future six
months
Executed in time or not? Yes
IV. Predict the 2015 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. Securities investment
□Applicable √Inapplicable
The Company was not involved in any securities investment of the reporting period.
VI. Shareholdings in other listed companies
□Applicable √ Inapplicable
There was no shareholding in other listed companies during the reporting period.
VII. Derivative investment
√ Applicable □ Inapplicable
Unit: RMB Ten Thousand Yuan
Proportion
Rela of the
ted-p Impairm closing Actual
arty Type of Initial Opening ent Closing investment gain/loss
Operat Relati Beginning
trans derivative investment Ending date investmen provisio investment amount in in
or on date
actio investment amount t amount n (if amount the reportin
n or any) Company’s g period
not closing net
assets (%)
Comm Forward
Non-re 14 Nov.
ercial No exchange 236,368.66 28 Jun. 2016 21,213.88 109,253.37 15.38% 2,411.32
lated 2014
bank settlement
Comm Non-re No Foreign 7,065.35 11 Feb. 28 Sep. 2015 0 0 10.18
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Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
ercial lated exchange 2015
bank trading
Comm
Non-re Option
ercial No 228,752.31 21 Oct. 2015 10 Jul. 2016 31,835 145,982.05 20.55% 1,239.95
lated portfolio
bank
Total 472,186.32 -- -- 53,048.88 255,235.42 35.93% 3,661.45
Capital source for derivative
Self-owned funds
investment
Cases involving lawsuit (if
No
applicable)
Disclosure date of the board
announcement approving the 25 Apr. 2015
derivative investment (if any)
Disclosure date of the general
meeting announcement
approving the derivative
investment (if any)
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
Analysis on risks and control were no standard operation procedures and strict approval procedures, it was easy to cause
measures of derivative products compliant and regulatory risks existing in the validity and feasibility of contract, commitments and
held in the reporting period other legal documents signed.
(including but not limited to Precautionary measures: The Company carefully studied and mastered laws, regulations and
market risk, liquidity risk, credit policies relevant to derivative products transaction, formulated internal control rules for the
risk, operation risk, law risk, forward settlement hedging business, standardized the operation procedures. And strengthened the
etc.) compliant examination on derivative products investment business, and strictly abided by 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,
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Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
regulations, the Company’s Articles of Association, the Management Rules for Derivative
Investment of Lu Thai Textile Co., Ltd., the Proposal on the Plan of Lu Thai Textile Co., Ltd. for
Derivative Transactions in 2014 approved at the 7th Session of the 7th Board of Directors on 25
Mar. 2014, and performed relevant information disclosure 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 inter-bank spot RMB-dollar trading band from 1% to 2% since 17 Mar.
2014, 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.
Changes of market prices or fair 1. Up to 30 Sep. 2015, the Company held 76 undue financial derivative product contracts, totaling
values in the reporting period of US$441.5 million, including 35 forward settlement contracts worth US$172 million and 41 foreign
the invested derivatives. And exchange option contracts worth US$ 269.5 million (the latest expiration before Jul 2016). The
the analysis on the fair value of financial derivative products above accounted for 35.93% of the closing net assets.
the derivatives should include 2. From Jan. 2015 to Sep. 2015, the due financial derivative products of the Company totally
the specific use methods and the equaled to US$ 347.5862 million, all delivered on time, and the gain generated was RMB36.6145
relevant assumptions and million. To be specific, the due forward settlement was US$203.127million, generating gain of
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Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
parameters. RMB24.1132 million; the due forward foreign exchange trading amount equaled to US$ 11.4592
million, which generated gain of RMB101800; and the due foreign exchange options equaled to
US$133 million, which RMB123million timely delivered due to the arrival of delivery conditions,
generated a gain of RMB12.3995 million, US$10 million had not been delivered due to not arrive
the delivery conditions.
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
The Company’s independent directors Zhou Zhiji, Zhang Chengzhu, Wang Lei, Xu Jianjun and
Zhao Yao, concerning conducting derivatives business, have issued the following professional
Specific opinion from advice: we were of the opinion that it would strengthen the Company’s competitiveness to use
independent directors on the derivative transactions with focus on forward settlement and purchase as an effective tool to avoid
Company’s derivatives foreign exchange risks, to strengthen the relevant internal control and to carry out the loss and risk
investment and risk control 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.
VIII. Researches, visits and interviews received in the reporting period
√Applicable □Inapplicable
Main discussion and
Way of
Time Place Visitor type Visitor materials provided by the
reception
Company
RBC Global Asset Management
Field The Company's current
8 Sep. 2015 Conference room Institution Richard Farrell, Christoffer
research situation
Enemaerke
Office of the Journalist Lihua of Da Zhihui The Company's current
22 Sep. 2015 Other Institution
chairman secretary News Agency and investor situation
Field Credit Suisse (Hong Kong) Co., The Company's current
25 Sep. 2015 Conference room Institution
research Ltd. Wang Yifu situation
Field The Company's current
25 Sep. 2015 Conference room Institution Zhizhu Investment Liu Ren
research situation
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Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
Section IV. Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 956,833,305.54 666,293,798.30
Financial assets measured at fair value of which changes
are recorded in current profits and losses
Derivative financial assets
Notes receivable 168,400,772.02 113,804,477.43
Accounts receivable 266,014,761.63 211,970,554.10
Accounts paid in advance 145,668,088.10 174,865,932.88
Interests receivable 461,711.95
Dividend receivable
Other accounts receivable 49,452,677.54 63,378,909.28
Financial assets purchased under agreements to resell
Inventories 1,574,079,743.23 1,752,570,382.21
Assets held for sale
Non-current assets due within 1 year
Other current assets 24,641,973.01 5,167,324.98
Total current assets 3,185,553,033.02 2,988,051,379.18
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets 67,442,600.00 67,442,600.00
Held-to-maturity investments
Long-term accounts receivable 5,280,998.00 6,980,998.00
Long-term equity investment
Investing real estate 4,874,905,537.11 4,930,848,056.04
Fixed assets 138,598,587.06 123,585,226.80
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Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
Construction in progress 31,577,585.24 19,885,765.41
Engineering materials
Disposal of fixed assets 1,000,136.01 1,310,500.00
Production biological assets 366,217,416.47 373,760,347.71
Oil-gas assets
Intangible assets 20,613,803.29 20,613,803.29
R&D expense 73,791,208.53 28,319,033.27
Goodwill 51,744,783.30 49,963,446.84
Long-term deferred expenses 12,781,283.00 16,910,237.34
Deferred income tax assets 5,643,953,938.01 5,639,620,014.70
Other non-current assets 8,829,506,971.03 8,627,671,393.88
Total of non-current assets
Total assets 749,720,308.36 517,452,946.24
Current liabilities: 19,444,595.00 3,306,200.00
Short-term borrowings
Financial liabilities measured at fair value of which
1,823,163.13 7,421,979.09
changes are recorded in current profits and losses
Derivative financial liabilities 231,878,445.18 344,082,239.16
Notes payable 117,594,870.83 82,176,191.45
Accounts payable 236,326,185.73 261,539,206.93
Accounts received in advance 56,883,256.04 74,052,405.97
Financial assets sold for repurchase 1,305,403.16 511,373.44
Handling charges and commissions payable 441,113.64 441,456.54
Payroll payable 65,412,413.07 58,075,873.18
Tax payable
Interest payable 89,058,200.00 100,733,898.72
Dividend payable
Liabilities divided as held for sale 1,569,887,954.14 1,449,793,770.72
Non-current liabilities due within 1 year
Other current liabilities 9,904,645.59
Total current liabilities 220,000.00
Non-current liabilities: 86,564,776.96 80,360,457.97
Long-term borrowings
Long-term payables
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Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
Long-term payroll payables 64,891,997.89 67,057,221.40
Specific payables 2,148,201.86 2,064,713.02
Estimated liabilities 1,840,000.00 1,840,000.00
Deferred income 155,444,976.71 161,447,037.98
Deferred income tax liabilities 1,725,332,930.85 1,611,240,808.70
Other non-current liabilities
Total non-current liabilities 955,758,496.00 955,758,496.00
Total liabilities 1,007,142,273.08 1,007,039,561.13
Owners’ equity:
Share capital 7,770,092.57 -8,440,178.37
Capital reserves
Less: Treasury stock 742,347,832.47 742,347,832.47
Other comprehensive income
Specific reserves 3,963,050,970.28 3,892,066,534.32
Surplus reserves 6,676,069,664.40 6,588,772,245.55
Provisions for general risks 428,104,375.78 427,658,339.63
Retained profits 7,104,174,040.18 7,016,430,585.18
Total equity attributable to owners of the Company 8,829,506,971.03 8,627,671,393.88
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
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 463,633,217.19 250,409,717.93
Financial assets measured at fair value of which changes are
recorded in current profits and losses
Derivative financial assets
Notes receivable 125,792,223.71 87,341,876.69
Accounts receivable 310,241,737.50 321,897,074.61
Accounts paid in advance 164,730,252.17 193,383,406.51
Interest receivable
15
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
Dividend receivable
Other accounts receivable 14,337,059.31 28,049,517.79
Inventories 1,137,616,372.52 1,206,795,514.65
Assets held for sale
Non-current assets due within 1 year
Other current assets 6,994,884.74 1,017,648.28
Total current assets 2,223,345,747.14 2,088,894,756.46
Non-current assets:
Available-for-sale financial assets 55,282,600.00 55,282,600.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 1,528,282,915.48 1,170,861,572.56
Investing real estate
Fixed assets 3,079,981,260.57 3,115,567,670.72
Construction in progress 76,942,012.49 77,701,863.38
Engineering materials 3,030,253.44 18,626,397.04
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 233,676,213.62 239,561,216.15
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 32,256,443.13 31,683,250.78
Other non-current assets 5,406,401.00 5,406,401.00
Total of non-current assets 5,014,858,099.73 4,714,690,971.63
Total assets 7,238,203,846.87 6,803,585,728.09
Current liabilities:
Short-term borrowings 539,827,578.80 109,116,402.18
Financial liabilities measured at fair value of which changes
16,760,890.00 3,075,000.00
are recorded in current profits and losses
Derivative financial liabilities
Notes payable 807,271.80 4,126,949.64
Accounts payable 160,857,593.47 370,179,503.31
16
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
Accounts received in advance 80,092,867.72 42,230,252.30
Payroll payable 180,458,742.95 201,779,896.86
Tax payable 36,616,744.96 38,755,976.56
Interest payable 699,480.68 401,695.08
Dividend payable 441,113.64 441,456.54
Other accounts payable 25,364,828.60 22,996,300.29
Liabilities held for sale
Non-current liabilities due within 1 year 89,058,200.00 100,733,898.72
Other current liabilities
Total current liabilities 1,130,985,312.62 893,837,331.48
Non-current liabilities:
Long-term borrowings 9,904,645.59
Long-term payables
Long-term payroll payables 86,564,776.96 80,360,457.97
Specific payables
Estimated liabilities
Deferred income 29,963,126.44
Deferred income tax liabilities
Other non-current liabilities 30,469,481.47
Total non-current liabilities 116,527,903.40 120,734,585.03
Total liabilities 1,247,513,216.02 1,014,571,916.51
Owners’ equity:
Share capital 955,758,496.00 955,758,496.00
Capital reserves 1,013,494,181.86 1,013,392,242.22
Less: Treasury stock
Other comprehensive income
Specific reserves
Surplus reserves 742,347,832.47 742,347,832.47
Retained profits 3,279,090,120.52 3,077,515,240.89
Total owners’ equity 5,990,690,630.85 5,789,013,811.58
Total liabilities and owners’ equity 7,238,203,846.87 6,803,585,728.09
3. Consolidated income statement
Unit: RMB Yuan
17
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
Item Jul.-Sept. 2015 Jul.-Sept. 2014
I. Total operating revenues 1,569,500,236.21 1,459,299,125.04
Including: Sales income 1,569,500,236.21 1,459,299,125.04
II. Total operating costs 1,341,971,914.13 1,229,616,946.53
Including: Cost of sales 1,114,701,276.77 1,016,099,059.98
Taxes and associate charges 14,608,146.65 11,637,382.05
Selling and distribution expenses 44,750,892.55 38,911,228.21
Administrative expenses 159,277,381.50 160,259,173.42
Financial expenses 6,595,261.92 3,058,935.04
Asset impairment loss 2,038,954.74 -348,832.17
Add: Gain/(loss) from change in fair value (“-” means loss) -28,385,095.00 3,023,830.00
Gain/(loss) from investment (“-” means loss) 7,753,914.81 3,622,872.65
Including: share of profits in associates and joint ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) 206,897,141.89 236,328,881.16
Add: non-operating income 42,515,503.14 38,684,003.14
Including: Gains on disposal of non-current assets 148,208.96 2,655,811.63
Less: non-operating expense 991,351.38 1,003,631.25
Including: Losses on disposal of non-current assets 248,952.00 823,879.58
IV. Total profit (“-” means loss) 248,421,293.65 274,009,253.05
Less: Income tax expense 32,998,250.07 39,474,507.51
V. Net profit (“-” means loss) 215,423,043.58 234,534,745.54
Net profit attributable to owners of the Company 204,342,167.24 233,259,629.65
Minority shareholders’ income 11,080,876.34 1,275,115.89
VI. After-tax net amount of other comprehensive incomes 15,635,393.71 474,152.61
After-tax net amount of other comprehensive incomes
15,635,393.71 474,152.61
attributable to owners of the Company
(I) Other comprehensive incomes that will not be
reclassified into gains and losses
1. Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
2. Enjoyable shares in other comprehensive incomes in
investees that cannot be reclassified into gains and losses under the
equity method
(II) Other comprehensive incomes that will be reclassified
15,635,393.71 474,152.61
into gains and losses
18
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
1. Enjoyable shares in other comprehensive incomes in
investees that will be reclassified into gains and losses under the
equity method
2. Gains and losses on fair value changes of
available-for-sale financial assets
3. Gains and losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
4. Effective hedging gains and losses on cash flows
5. Foreign-currency financial statement translation
15,635,393.71 474,152.61
difference
6. Other
After-tax net amount of other comprehensive incomes
attributable to minority shareholders
VII. Total comprehensive incomes 231,058,437.29 235,008,898.15
Attributable to owners of the Company 219,977,560.95 233,733,782.26
Attributable to minority shareholders 11,080,876.34 1,275,115.89
VIII. Earnings per share
(I) Basic earnings per share 0.21 0.24
(II) Diluted earnings per share 0.21 0.24
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 0.00, with the corresponding amount for the last period being RMB 0.00.
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
Unit: RMB Yuan
Item Jul.-Sept. 2015 Jul.-Sept. 2014
I. Total sales 1,278,909,332.19 1,146,630,743.95
Less: cost of sales 948,733,206.69 806,314,524.45
Business taxes and surcharges 12,428,849.05 7,586,122.90
Distribution expenses 22,526,384.35 17,703,097.47
Administrative expenses 112,608,039.08 114,683,553.89
Financial costs 5,553,363.77 31,161.80
Impairment loss -588,263.79 1,537,244.61
Add: gain/(loss) from change in fair value (“-” means loss) -25,523,190.00 2,722,930.00
19
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
Gain/(loss) from investment (“-” means loss) 206,830,114.81 63,208,307.08
Including: income from investment on associates and joint
ventures
II. Business profit (“-” means loss) 358,954,677.85 264,706,275.91
Add: non-operating income 31,432,158.72 37,341,244.12
Including: Gains on disposal of non-current assets 148,208.96 2,628,743.00
Less: non-operating expense 306,073.71 388,059.63
Including: Losses on disposal of non-current assets 214,190.34 301,200.85
III. Total profit (“-” means loss) 390,080,762.86 301,659,460.40
Less: Income tax expense 22,267,924.25 29,849,705.15
IV. Net profit (“-” means loss) 367,812,838.61 271,809,755.25
V. After-tax net amount of other comprehensive incomes
(I) Other comprehensive incomes that will not be reclassified
into gains and losses
1. Changes in net liabilities or assets with a defined benefit
plan upon re-measurement
2. Enjoyable shares in other comprehensive incomes in
investees that cannot be reclassified into gains and losses under
the equity method
(II) Other comprehensive incomes that will be reclassified into
gains and losses
1. Enjoyable shares in other comprehensive incomes in
investees that will be reclassified into gains and losses under the
equity method
2. Gains and losses on fair value changes of
available-for-sale financial assets
3. Gains and losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
4. Effective hedging gains and losses on cash flows
5. Foreign-currency financial statement translation
difference
6. Other
VI. Total comprehensive incomes 367,812,838.61 271,809,755.25
VII. Earnings per share
(I) Basic earnings per share 0.38 0.28
(II) Diluted earnings per share 0.38 0.28
20
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
5. Consolidated cash flow statement
Unit: RMB Yuan
Item Jan.-Sept. 2015 Jan.-Sept. 2014
I. Operating revenues 4,511,336,133.37 4,573,525,706.66
Including: Sales income 4,511,336,133.37 4,573,525,706.66
II. Operating costs 3,917,910,680.54 3,781,257,471.20
Including: Cost of sales 3,247,723,477.84 3,153,949,353.35
Business tax and surcharges 39,252,858.89 35,180,972.00
Sales expense 142,396,301.55 132,019,374.03
Administration expense 470,600,715.08 455,191,848.05
Financial expense 15,616,968.80 10,500,242.50
Impairment loss 2,320,358.38 -5,584,318.73
Add: gain/(loss) from change in fair value (“-” means loss) -16,138,395.00 -27,975,320.00
Gain/(loss) from investment (“-” means loss) 36,614,480.69 24,901,821.73
Including: income from investment on associates and joint
ventures
Exchange gain (“-” means loss)
III. Business profit (“-” means loss) 613,901,538.52 789,194,737.19
Add: non-operating income 52,636,297.85 58,510,771.38
Including: Gains on disposal of non-current assets 958,145.92 2,706,768.68
Less: non-operating expense 5,236,765.44 4,098,753.25
Including: Losses on disposal of non-current assets 3,757,324.92 2,878,470.70
IV. Total profit (“-” means loss) 661,301,070.93 843,606,755.32
Less: Income tax expense 100,467,780.03 127,534,886.46
V. Net profit (“-” means loss) 560,833,290.90 716,071,868.86
Net profit attributable to owners of the Company 548,863,683.96 710,139,886.58
Minority shareholders’ income 11,969,606.94 5,931,982.28
VI. After-tax net amount of other comprehensive incomes 16,210,270.94 470,790.84
After-tax net amount of other comprehensive incomes
16,210,270.94 470,790.84
attributable to owners of the Company
(I) Other comprehensive incomes that will not be
reclassified into gains and losses
1. Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
2. Enjoyable shares in other comprehensive incomes in
21
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
investees that cannot be reclassified into gains and losses under the
equity method
(II) Other comprehensive incomes that will be reclassified
16,210,270.94 470,790.84
into gains and losses
1. Enjoyable shares in other comprehensive incomes in
investees that will be reclassified into gains and losses under the
equity method
2. Gains and losses on fair value changes of
available-for-sale financial assets
3. Gains and losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
4. Effective hedging gains and losses on cash flows
5. Foreign-currency financial statement translation
16,210,270.94 470,790.84
difference
6. Other
After-tax net amount of other comprehensive incomes
attributable to minority shareholders
VII. Total comprehensive incomes 577,043,561.84 716,542,659.70
Attributable to owners of the Company 565,073,954.90 710,610,677.42
Attributable to minority shareholders 11,969,606.94 5,931,982.28
VIII. Earnings per share
(I) Basic earnings per share 0.57 0.74
(II) Diluted earnings per share 0.57 0.74
Where business mergers under the same control occurred in this period, the net profit achieved by the merged parties before the
business mergers was RMB 0.00, with the corresponding amount for the same period of last year being RMB 0.00.
6. Income statement of the Company for Jan.-Sept. 2015
Unit: RMB Yuan
Item Jan.-Sept. 2015 Jan.-Sept. 2014
I. Total sales 3,628,521,750.08 3,464,830,268.05
Less: cost of sales 2,707,477,419.03 2,403,442,311.30
Business taxes and surcharges 31,909,658.05 25,674,053.53
Distribution expenses 67,900,356.82 59,880,409.40
Administrative expenses 332,216,122.64 322,513,995.73
Financial costs 8,928,427.29 -4,693,539.59
Impairment loss -722,593.45 387,972.56
22
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
Add: gain/(loss) from change in fair value (“-” means
-13,685,890.00 -23,083,400.00
loss)
Gain/(loss) from investment (“-” means loss) 251,346,259.90 81,329,816.12
Including: income from investment on associates
and joint ventures
II. Business profit (“-” means loss) 718,472,729.60 715,871,481.24
Add: non-operating income 36,977,224.96 53,629,451.00
Including: Gains on disposal of non-current assets 535,631.91 2,643,079.05
Less: non-operating expense 3,984,982.02 3,083,309.92
Including: Losses on disposal of non-current assets 3,630,036.75 2,354,115.36
III. Total profit (“-” means loss) 751,464,972.54 766,417,622.32
Less: Income tax expense 72,010,844.91 96,158,238.39
IV. Net profit (“-” means loss) 679,454,127.63 670,259,383.93
V. After-tax net amount of other comprehensive
incomes
(I) Other comprehensive incomes that will not be
reclassified into gains and losses
1. Changes in net liabilities or assets with a
defined benefit plan upon re-measurement
2. Enjoyable shares in other comprehensive
incomes in investees that cannot be reclassified into
gains and losses under the equity method
(II) Other comprehensive incomes that will be
reclassified into gains and losses
1. Enjoyable shares in other comprehensive
incomes in investees that will be reclassified into gains
and losses under the equity method
2. Gains and losses on fair value changes of
available-for-sale financial assets
3. Gains and losses on reclassifying
held-to-maturity investments into available-for-sale
financial assets
4. Effective hedging gains and losses on cash
flows
5. Foreign-currency financial statement translation
difference
6. Other
VI. Total comprehensive incomes 679,454,127.63 670,259,383.93
23
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
VII. Earnings per share
(I) Basic earnings per share 0.71 0.70
(II) Diluted earnings per share 0.71 0.70
7. Consolidated cash flow statement for Jan.-Sept. 2015
Unit: RMB Yuan
Item Jan.-Sept. 2015 Jan.-Sept. 2014
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 4,664,920,573.83 4,739,038,472.26
Tax refunds received 148,262,497.13 147,836,635.52
Other cash received relating to operating activities 70,996,236.91 77,348,657.08
Subtotal of cash inflows from operating activities 4,884,179,307.87 4,964,223,764.86
Cash paid for goods and services 2,501,134,045.38 2,615,548,578.31
Cash paid to and for employees 1,067,413,577.72 1,019,650,627.92
Various taxes paid 289,646,768.69 285,300,761.33
Other cash payment relating to operating activities 192,474,784.29 201,143,159.99
Subtotal of cash outflows from operating activities 4,050,669,176.08 4,121,643,127.55
Net cash flows from operating activities 833,510,131.79 842,580,637.31
II. Cash flows from investing activities:
Cash received from retraction of investments
Cash received from return on investments 120,000.00
Net cash received from disposal of fixed assets, intangible assets and other
2,105,031.35 10,003,767.30
long-term assets
Net cash received from disposal of subsidiaries or other business units
Other cash received relating to investing activities 39,921,863.49 30,237,990.10
Subtotal of cash inflows from investing activities 42,026,894.84 40,361,757.40
Cash paid to acquire fixed assets, intangible assets and other long-term
251,589,688.97 617,521,092.48
assets
Cash paid for investment
Net increase of pledge loan
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 251,589,688.97 617,521,092.48
Net cash flows from investing activities -209,562,794.13 -577,159,335.08
24
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
III. Cash Flows from Financing Activities:
Cash received from capital contributions 500,000.00 500,000.00
Including: Cash received from minority shareholder investments by
subsidiaries
Cash received from borrowings 1,269,421,740.31 875,003,762.86
Cash received from issuance of bonds
Other cash received relating to financing activities 139,444,128.91 12,000,000.00
Subtotal of cash inflows from financing activities 1,409,365,869.22 887,503,762.86
Repayment of borrowings 1,075,891,350.84 1,071,424,640.49
Cash paid for interest expenses and distribution of dividends or profit 497,621,895.25 408,680,695.24
Including: dividends or profit paid by subsidiaries to minority
shareholders
Other cash payments relating to financing activities 89,026,946.69 37,633,916.36
Sub-total of cash outflows from financing activities 1,662,540,192.78 1,517,739,252.09
Net cash flows from financing activities -253,174,323.56 -630,235,489.23
IV. Effect of foreign exchange rate changes on cash and cash equivalents 9,752,853.01 4,837,492.36
V. Net increase in cash and cash equivalents 380,525,867.11 -359,976,694.64
Add: Opening balance of cash and cash equivalents 649,393,798.30 869,909,505.89
VI. Closing balance of cash and cash equivalents 1,029,919,665.41 509,932,811.25
8. Cash flow statement of the Company for Jan.-Sept. 2015
Unit: RMB Yuan
Item Jan.-Sept. 2015 Jan.-Sept. 2014
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 3,590,700,117.90 3,510,456,395.45
Tax refunds received 110,604,855.86 116,413,226.57
Other cash received relating to operating activities 35,871,142.11 51,225,907.26
Subtotal of cash inflows from operating activities 3,737,176,115.87 3,678,095,529.28
Cash paid for goods and services 1,957,819,052.08 2,009,520,631.31
Cash paid to and for employees 811,587,279.87 770,902,054.08
Various taxes paid 130,598,955.75 175,084,074.85
Other cash payment relating to operating activities 121,812,679.96 114,263,823.31
Subtotal of cash outflows from operating activities 3,021,817,967.66 3,069,770,583.55
Net cash flows from operating activities 715,358,148.21 608,324,945.73
25
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
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
1,623,821.35 9,663,804.30
and other long-term assets
Net cash received from disposal of subsidiaries or other business
units
Other cash received relating to investing activities 35,312,645.63 25,833,632.06
Subtotal of cash inflows from investing activities 36,936,466.98 35,497,436.36
Cash paid to acquire fixed assets, intangible assets and other
112,186,277.99 477,924,701.00
long-term assets
Cash paid for investment 352,757,288.38 87,406,362.39
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 464,943,566.37 565,331,063.39
Net cash flows from investing activities -428,007,099.39 -529,833,627.03
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Cash received from borrowings 752,717,733.96 308,716,019.09
Cash received from issuance of bonds
Other cash received relating to financing activities 61,013,728.00
Subtotal of cash inflows from financing activities 813,731,461.96 308,716,019.09
Repayment of borrowings 347,320,254.96 158,232,764.78
Cash paid for interest expenses and distribution of dividends or
479,370,646.28 378,078,667.88
profit
Other cash payments relating to financing activities 61,013,728.00 25,633,916.36
Sub-total of cash outflows from financing activities 887,704,629.24 561,945,349.02
Net cash flows from financing activities -73,973,167.28 -253,229,329.93
IV. Effect of foreign exchange rate changes on cash and cash
745,617.72 4,824,462.32
equivalents
V. Net increase in cash and cash equivalents 214,123,499.26 -169,913,548.91
Add: Opening balance of cash and cash equivalents 249,509,717.93 503,157,687.92
VI. Closing balance of cash and cash equivalents 463,633,217.19 333,244,139.01
26
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
II. Auditor’s report
Is this report audited?
□ Yes √ No
This report is not audited.
Lu Thai Textile Co., Ltd.
Board Chairman: Liu Shizhen
29 Oct. 2015
27
