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鲁 泰B:2019年第一季度报告全文(英文版)2019-04-30  

						Lu Thai Textile Co., Ltd.                               First Quarter Report 2019




                            LU THAI TEXTILE CO., LTD.

                            FIRST QUARTER REPORT 2019




                                    April 2019




                                                                                1
Lu Thai Textile Co., Ltd.                                                  First Quarter Report 2019




                               Part I Important Notes

The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Lu Thai Textile Co., Ltd. (hereinafter referred to as the
“Company”) hereby guarantee the factuality, accuracy and completeness of the contents of
this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Liu Zibin, the Company’s legal representative, Zhang Hongmei, the Company’s Chief
Accountant, and Zhang Keming, the Company’s Financial Manager hereby guarantee that
the Financial Statements carried in this Report are factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.




                                                                                                   2
Lu Thai Textile Co., Ltd.                                                                                     First Quarter Report 2019




                                   Part II Key Corporate Information

I Key Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No

                                                                    Q1 2019               Q1 2018                 Change (%)

Operating revenue (RMB)                                          1,545,153,566.09      1,519,803,691.24                         1.67%

Net profit attributable to the listed company’s shareholders
                                                                   195,173,391.82        159,278,371.57                         22.54%
(RMB)

Net profit attributable to the listed company’s shareholders
                                                                   175,390,785.73        138,044,830.06                         27.05%
before exceptional items (RMB)

Net cash generated from/used in operating activities (RMB)          -89,714,180.16        84,118,827.13                     -206.65%

Basic earnings per share (RMB/share)                                           0.23                   0.17                      35.29%

Diluted earnings per share (RMB/share)                                         0.23                   0.17                      35.29%

Weighted average return on equity (%)                                        2.69%                   2.18%                      0.51%

                                                                 31 March 2019        31 December 2018            Change (%)

Total assets (RMB)                                              10,858,794,197.15 10,537,759,811.84                             3.05%

Equity attributable to the listed company’s shareholders
                                                                 7,324,049,365.93      7,146,548,467.86                         2.48%
(RMB)

Exceptional gains and losses:
√ Applicable □ Not applicable
                                                                                                                            Unit: RMB

                                                Item                                                         Q1 2019            Note

Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs)                      -12,249.61

Government subsidies charged to current profit or loss (exclusive of government subsidies
given in the Company’s ordinary course of business at fixed quotas or amounts as per the                      20,199,549.00
government’s uniform standards)

Gain or loss on fair-value changes in trading financial assets and liabilities, as well as
derivative financial assets and liabilities & income from disposal of trading financial assets and
liabilities, derivative financial assets and liabilities, as well as investments in other debt                  5,061,486.85
obligations (exclusive of effective portion of hedges that arise in the Company’s ordinary
course of business)

Non-operating income and expense other than the above                                                             213,423.07

Less: Income tax effects                                                                                        3,285,535.34

       Non-controlling interests effects (net of tax)                                                           2,394,067.88


                                                                                                                                         3
Lu Thai Textile Co., Ltd.                                                                                  First Quarter Report 2019


Total                                                                                                          19,782,606.09     --

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.


II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019

1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders

                                                                                                                             Unit: share

Number of ordinary shareholders at                   Number of preferred shareholders with resumed voting rights at
                                            55,250                                                                                    0
the period-end                                       the period-end (if any)

                                                          Top 10 shareholders

                                                                     Shareholdi                                   Shares in pledge or
                                                      Nature of                   Total shares    Restricted
             Name of shareholder                                         ng                                             frozen
                                                     shareholder                     held        shares held
                                                                     percentage                                     Status     Shares

                                                      Domestic
Zibo Lucheng Textile Investment Co., Ltd.       non-state-owned         15.21%    140,353,583
                                                     legal person

                                                 Foreign legal
Tailun (Thailand) Textile Co., Ltd.                                     12.82%     118,232,400     118,232,400
                                                       person

                                                 Foreign legal
Hong Kong Securities Clearing Co. Ltd                                    3.23%      29,821,256
                                                       person

                                               State-owned legal
Central Huijin Assets Management Co., Ltd.                               2.20%      20,315,300
                                                       person

                                                 Foreign legal
T.ROWE PRICE INTL DISCOVERY FUND                                         2.16%      19,948,219
                                                       person

China Securities Finance Corporation Limited            Other            1.98%      18,313,391

                                                 Foreign legal
Hong Kong Monetary Authority                                             1.77%      16,365,164
                                                       person

National Social Security Fund Portfolio 103             Other            1.08%       9,999,947

RBC EMERGING MARKETS SMALL CAP                   Foreign legal
                                                                         0.65%       6,033,062
EQUITY FUND                                            person

First State Investments Management (UK)          Foreign legal
                                                                         0.59%       5,444,048
Co., Ltd.                                              person

                                                 Top 10 unrestricted shareholders



                                                                                                                                          4
Lu Thai Textile Co., Ltd.                                                                                First Quarter Report 2019


                                                                                                      Shares by type
                       Name of shareholder                      Unrestricted shares held
                                                                                                 Type                Shares

                                                                                            RMB-denominate
Zibo Lucheng Textile Investment Co., Ltd.                                     140,353,583                            140,353,583
                                                                                            d ordinary stock

                                                                                            RMB-denominate
Hong Kong Securities Clearing Co. Ltd                                          29,821,256                              29,821,256
                                                                                            d ordinary stock

                                                                                            RMB-denominate
Central Huijin Assets Management Co., Ltd.                                     20,315,300                              20,315,300
                                                                                            d ordinary stock

                                                                                             Domestically
T.ROWE PRICE INTL DISCOVERY FUND                                               19,948,219    listed foreign            19,948,219
                                                                                                 stock

                                                                                            RMB-denominate
China Securities Finance Corporation Limited                                   18,313,391                              18,313,391
                                                                                            d ordinary stock

                                                                                            RMB-denominate
Hong Kong Monetary Authority                                                   16,365,164                              16,365,164
                                                                                            d ordinary stock

                                                                                            RMB-denominate
National Social Security Fund Portfolio 103                                     9,999,947                               9,999,947
                                                                                            d ordinary stock

                                                                                             Domestically
RBC EMERGING MARKETS SMALL CAP EQUITY FUND                                      6,033,062    listed foreign             6,033,062
                                                                                                 stock

                                                                                            RMB-denominate
First State Investments Management (UK) Co., Ltd.                               5,444,048                               5,444,048
                                                                                            d ordinary stock

                                                                                             Domestically
FORENINGEN AP INVEST F.M.B.A.                                                   5,398,839    listed foreign             5,398,839
                                                                                                 stock

                                                              Zibo Lucheng Textile Investment Co., Ltd. is the largest
                                                              shareholder of the Company and the actual controller. Tailun
                                                              (Thailand) Textile Co., Ltd. is the second largest shareholder as
Related or acting-in-concert parties among the shareholders well as sponsor of foreign capital of the Company. All of other
above                                                         shareholders are people holding public A share or public B share
                                                              and the Company is not able to confirm whether there is
                                                              associated relationship or concerted action among other
                                                              shareholders.

Top 10 ordinary shareholders involved in securities margin
                                                              Naught
trading (if any)

Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.



                                                                                                                                    5
Lu Thai Textile Co., Ltd.                                                 First Quarter Report 2019


2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable




                                                                                                  6
     Lu Thai Textile Co., Ltd.                                                                         First Quarter Report 2019




                                                   Part III Significant Events

     I Changes in Key Financial Statement Line Items and Explanation of why

     √ Applicable □ Not applicable


                                                                                                                  Unit: RMB

         Item             31 March 2019             31 December 2018    Change                  Reason for change


Prepayments                  278,788,371.55            149,582,616.21     86.38%   Increase in prepayments for raw materials

                                                                                   Decrease in receivable export tax rebates
                                                                                   and recovery of some advances for
Other
                                 33,769,400.99          63,012,001.10    -46.41%   agricultural means of production during
receivables
                                                                                   Q1 2019 by Xinjiang Luthai Fengshou
                                                                                   Cotton Industry Co., Ltd.
Current portion                                                                    Purchase of wealth management products
of      non-current              50,261,580.38                      -    100.00%   of AVIC TRUST by the Company as the
assets                                                                             parent during Q1 2019
Other
                                                                                   Increase in prepayment for land lease by
non-current                      68,330,830.51          43,100,215.87     58.54%
                                                                                   Lu Thai (Vietnam) Textile Co., Ltd.
assets

Payroll payable              200,183,479.23            325,998,210.17    -38.59%   Payment of 2018 year-end bonus

                                                                                   Payment of enterprise income tax by the
Taxes payable                    21,864,508.35          43,556,823.75    -49.80%   Company as the parent during the Q1
                                                                                   2019

         Item                    Q1 2019                Q1 2018         Change                  Reason for change


Selling expense                  39,973,056.09          30,483,720.76     31.13%   Increase in sales service charges

                                                                                   Increase      in   operating     government
Other income                     20,199,549.00          13,538,655.19     49.20%
                                                                                   subsidies received in Q1 2019
Investment                                                                         Increase in losses on investment in
                                    -93,250.75           2,439,952.13   -103.82%
income                                                                             derivative financial instruments
                                                                                   Decrease in gains on changes in fair value
Gain on changes                                                                    or     fails-to-delivery   forward    foreign
                                  5,108,600.00           7,895,000.00    -35.29%
in fair value                                                                      exchange settlement and options at the
                                                                                   period-end
Asset       disposal
                                       -4,492.87          -300,994.82     98.51%   Decrease in losses on fixed asset disposal
income



                                                                                                                               7
 Lu Thai Textile Co., Ltd.                                                                                First Quarter Report 2019


Income       tax
                             37,131,437.89         27,669,680.25            34.20%    Increase in Profit before tax
expense



 II Progress, Influence and Solutions with regard to Significant Events

 □ Applicable √ Not applicable
 Progress of any share repurchase:
 √ Applicable □ Not applicable
 The Company held the 2nd Extraordinary General Meeting of 2018 on 23 March 2018, on which, the Proposal on Repurchase of
 Some B-Shares of the Company was reviewed and approved. For details, please refer to the announcement (announcement No.:
 2018-013) disclosed on www.cninfo.com.cn on 24 March 2018. The Company disclosed the Report on Repurchase of Some
 B-Shares of the Company on 16 May 2018 and particulars about the first share repurchase in the Announcement on Implementation of
 Repurchase of B-Shares of Lu Thai Textile Co., Ltd. published on 29 May 2018. As of 22 March 2019, the repurchase term has
 expired and the accumulative B-shares repurchased were 64,480,770 which have been cancelled completely at CSDCC Shenzhen on
 4 April 2019. The total share capital of the Company now is decreased to 858,121,541. For details, please refer to the two
 announcements (announcement No.: 2019-013, announcement No.: 2019-023) respectively disclosed on 23 March 2019 and 9 April
 2019.


 Progress of any reduction of the repurchased shares through centralized bidding:
 □ Applicable √ Not applicable


 III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
 Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
 Reporting Period

 □ Applicable √ Not applicable
 No such cases in the Reporting Period.


 IV Operating Performance Forecast for H1 2019

 Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well as explanation of
 why:
 □ Applicable √ Not applicable


 V Securities Investments

 □ Applicable √ Not applicable
 No such cases in the Reporting Period.


 VI Investments in Derivative Financial Instruments

 √ Applicable □ Not applicable
                                                                                                                  Unit: RMB'0,000

                                                                                                                                  8
Lu Thai Textile Co., Ltd.                                                                                                     First Quarter Report 2019


                                                                                                                                            Proportion
          Rela Rela
                                                                                                                                 Endin of closing
          tions ted-                                                                                                 Impairm                              Actual
                                                                                           Purchased                               g        investment
           hip part Type of                 Initial                           Beginning                Sold in the     ent                               gain/loss
Operat                                                  Starting    Ending                   in the                              invest amount in
          with       y     derivativ investment                               investment               Reporting provisio                                 in the
  or                                                      date        date                 Reporting                              ment         the
           the trans              e        amount                              amount                    Period       n (if                              Reportin
                                                                                            Period                               amoun Company’
          Com actio                                                                                                   any)                               g Period
                                                                                                                                    t        s ending
          pany       n
                                                                                                                                            net assets

                           Forward
Comm Non-                  exchang
                                                       19 June     7 March
ercial    relat No                e         25,089.2                            6,512.05 18,577.15       25,089.2                       0       0.00% -196.97
                                                       2018        2019
bank       ed              settleme
                                 nt

Comm Non-                  Foreign
                                                       23 March 28 March
ercial    relat No exchang                  3,922.86                            1,909.89    2,012.97     3,922.86                       0       0.00% -140.28
                                                       2018        2019
bank       ed              e option

                           Forward
Comm Non-                  exchang
                                                       8 March     30 April
ercial    relat No e                        2,637.88                            1,610.11    1,027.77     2,028.78                 609.1         0.08%       53.27
                                                       2018        2019
bank       ed              transacti
                           ons

Total                                      31,649.94       --          --     10,032.05 21,617.89 31,040.84                       609.1         0.08% -283.98

Capital source for derivative
                                          The Company’s own money
investment

Lawsuit (if applicable)                   Naught

Disclosure date of board of
directors announcement on
                                          27 April 2018
approval of derivative
investment (if any)

Disclosure date of general
meeting of shareholders
announcement on approval
of derivative investment (if
any)

Analysis        on       risks        and The Company conducted derivatives products transaction in order for hedging. And the forward settlement
control         measures               of hedging was operated by installments, with the relevant amount not more than the planned derivatives
derivative products held in products transactions. And all derivatives products transaction was zero-deposit. Meanwhile, the Company
the       Reporting              Period had a complete risk control system for sufficient analysis and prevention of possible risks such as market
(including but not limited to risk, liquidity risk and credit risk, operation risk and risk of laws and regulation.
market risk, liquidity risk, 1. Market risk: when the international and domestic economic situations change, the corresponding changes
credit risk, operation risk, in exchange rates and interest rates may have an adverse impact on the financial derivatives transactions of
law risk, etc.)                           the Company. Precautionary measures to be taken include: the Company chooses risk-controlled financial

                                                                                                                                                           9
Lu Thai Textile Co., Ltd.                                                                                         First Quarter Report 2019


                                derivative tools with simple structure and good liquidity to carry out the hedging business, strictly controls
                                the scale of financial derivatives trading by staged operations, and adjusts the strategy according to market
                                changes in a timely manner.
                                2. Liquidity risk and credit risk: a credit risk arising from failure of the contractually due Company or
                                counterparty in performing the contract due to liquidity or factors other than liquidity. Precautionary
                                measures to be taken include: the Company determines the upper limit of derivatives transaction amounts
                                according to production and operation scale as well as foreign exchange income, and conducts operations by
                                stage according to the budget of future collections and disbursement. The derivative trades are free of
                                guarantee deposit and can still be guaranteed in performance after the contract expires by means of extension
                                and balance settlement etc. to prevent the Company from credit damages due to lack of liquidity. The
                                Company selects financial institutions with strong capability and good reputation as a counterparty and signs
                                standard derivative trading contracts to strictly control credit risk of the counterparty.
                                3. Operation risk:
                                The derivatives had high specialty and complexity, so imperfect internal operation procedures, staffs and
                                external events would make the Company to undertake risks during the transaction. Risk control measures:
                                The Company promulgated strict authorization and approval system and perfect regulatory mechanism, fixed
                                the operation procedures and approval procedures system to conduct derivative products transaction,
                                implemented strict authorization and post checks and balances system, meanwhile, it improved the overall
                                quality of relevant personnel through strengthening the professional ethics education and business training
                                for them. Besides, it established the System of Reporting the Abnormal Situation Timely so as to ensure to
                                lower the operation risks to the maximum.
                                4. Risk of laws and regulation:
                                The Company conducted derivatives products transaction in strict accordance with relevant laws and rules. 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. Risk control measures: The Company carefully studied and mastered laws, regulations
                                and policies relevant to derivative products transaction, formulated internal control rules for the forward
                                settlement hedging business, standardized the operation procedures. And strengthened the compliant
                                examination on derivative products transaction business. The Company conducted derivative transaction
                                business 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 Transaction of Lu Thai Textile
                                Co., Ltd. and the Proposal on the Plan of Lu Thai Textile Co., Ltd. for Derivative Transactions approved at
                                the 17th Meeting of the 8th Board of Directors on 25 April 2018, and performed relevant information
                                disclosure responsibilities.

Changes of market prices or 1. As of 31 March 2019, the Company held one undue financial derivatives contracts, totaling USD0.908
fair values in the Reporting million, which was the forward exchange transaction; The contract expires by April 2019 at the latest.
Period   of      the   invested Financial derivatives accounted for 0.08% of net assets at the end of the period.
derivatives. And the analysis 2. In January - March 2019, the amount of maturing financial derivatives of the Company amounted to USD
on the fair value of the 46,462,800 which was executed as per the contract in full, which generated a loss of RMB2,839,800. The
derivatives should include amount of maturing settlements of exchange in the long term amounted to USD37.5 million which generated
the specific use methods and a loss of RMB1,969,700; the amount of maturing foreign exchange options was USD6 million which
the   relevant    assumptions generated a loss of RMB1,402,800. The amount of maturing exchange transaction amounted to
and parameters.                 USD2,962,800 which generated an income of RMB532,700.



                                                                                                                                         10
Lu Thai Textile Co., Ltd.                                                                                      First Quarter Report 2019


Whether significant changes
occurred to the Company’s
accounting     policy       and
specific            accounting
                                  No significant changes
principles of derivatives in
the     Reporting       Period
compared to the previous
Reporting Period

                                  The Company’s independent directors Zhou Zhiji, Zhao Yao, Bi Xiuli, Pan Ailing and Wang Xinyu,
                                  concerning conducting derivatives business, have issued the following professional advice: We are of the
Specific     opinion      from opinion that it will strengthen the Company’s competitiveness to use derivative transactions with focus on
independent directors on the forward settlement and purchase as an effective tool to avoid foreign exchange risks, to strengthen the
Company’s          derivatives relevant internal control and to carry out the loss and risk prevention measures so as to improve the operation
investment and risk control and management. In conducting derivative transactions with focus on forward settlement and purchase, the
                                  Company follows a legal approval procedure, has sound relevant institutions and keeps the risks relatively
                                  controllable. No harm has been done to the interests of the Company’s shareholders.


VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period

√ Applicable □ Not applicable

                                                                   Type of communication              Index to main information
             Date                    Way of communication
                                                                            party                           communicated

       29 March 2019                        By phone                      Individual              Basic information of the Company


VIII Irregularities in the Provision of Guarantees

□ Applicable √ Not applicable
No such cases in the Reporting Period.


IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes

□ Applicable √ Not applicable
No such cases in the Reporting Period.




                                                                                                                                      11
Lu Thai Textile Co., Ltd.                                                                      First Quarter Report 2019




                                         Part IV Financial Statements

I Financial Statements

1. Consolidated Balance Sheet

Prepared by Lu Thai Textile Co., Ltd.
                                                          31 March 2019
                                                                                                             Unit: RMB

                             Item                                    31 March 2019            31 December 2018

Current assets:

  Monetary capital                                                          538,479,435.51              545,502,709.36

  Trading financial assets                                                    30,972,000.00

  Financial assets at fair value through profit or loss

  Derivative financial assets

  Notes and accounts receivable                                             541,772,210.22              549,265,034.81

     Including: Notes receivable                                            109,925,824.66              174,657,918.26

                  Accounts receivable                                       431,846,385.56              374,607,116.55

  Prepayments                                                               278,788,371.55              149,582,616.21

  Other receivables                                                           33,769,400.99              63,012,001.10

     Including: Interest receivable

                  Dividends receivable

  Financial assets purchased under resale agreements

  Inventories                                                              2,230,389,578.14           2,093,366,992.30

  Contractual assets

  Assets classified as held for sale

  Current portion of non-current assets                                       50,261,580.38

  Other current assets                                                        79,442,182.89              86,366,454.56

Total current assets                                                       3,783,874,759.68           3,487,095,808.34

Non-current assets:

  Available-for-sale financial assets                                                                    85,112,000.00

  Investments in other debt obligations

  Held-to-maturity investments

  Long-term receivables                                                        9,648,298.10              10,693,844.75



                                                                                                                      12
Lu Thai Textile Co., Ltd.                                                              First Quarter Report 2019


  Long-term equity investments                                        95,554,809.90              96,018,463.65

  Investments in other equity instruments                             12,000,000.00

  Other non-current financial assets                                  31,018,515.95

  Investment property                                                 21,686,016.20              22,880,242.95

  Fixed assets                                                      5,789,600,038.26          5,748,562,385.35

  Construction in progress                                           339,361,863.03             337,230,646.42

  Right-of-use assets

  Intangible assets                                                  482,975,515.53             478,689,064.45

  R&D expense

  Goodwill                                                            20,563,803.29              20,613,803.29

  Long-term prepaid expense                                           116,811,767.31            119,126,407.71

  Deferred income tax assets                                          87,367,979.39              88,636,929.06

  Other non-current assets                                            68,330,830.51              43,100,215.87

Total non-current assets                                            7,074,919,437.47          7,050,664,003.50

Total assets                                                       10,858,794,197.15         10,537,759,811.84

Current liabilities:

  Short-term borrowings                                             1,710,887,864.90          1,325,273,780.05

  Trading financial liabilities

  Financial liabilities at fair value through profit or loss                                      4,877,600.00

  Derivative financial liabilities

  Notes and accounts payable                                         281,328,360.49             353,688,510.95

  Advances from customers                                             81,675,829.78             105,562,378.66

  Payroll payable                                                    200,183,479.23             325,998,210.17

  Taxes payable                                                       21,864,508.35              43,556,823.75

  Other payables                                                     213,357,425.53             215,946,987.68

     Including: Interest payable                                        1,823,793.34              3,068,841.54

                 Dividends payable                                       441,113.64                 441,113.64

  Liabilities directly associated with assets classified as held
for sale

  Current portion of non-current liabilities

  Other current liabilities

Total current liabilities                                           2,509,297,468.28          2,374,904,291.26

Non-current liabilities:

  Insurance contract reserve

  Long-term borrowings                                               176,649,161.23             170,019,083.89


                                                                                                              13
Lu Thai Textile Co., Ltd.                                                                First Quarter Report 2019


  Lease liabilities

  Long-term payables

  Long-term payroll payable                                         96,958,178.53                  96,958,178.53

  Provisions

  Deferred income                                                  140,663,318.17                 140,183,446.39

  Deferred income tax liabilities                                   27,754,915.94                  28,030,096.38

  Other non-current liabilities                                      1,840,000.00                   1,840,000.00

Total non-current liabilities                                      443,865,573.87                 437,030,805.19

Total liabilities                                                2,953,163,042.15               2,811,935,096.45

Owners’ equity:

  Share capital                                                    922,602,311.00                 922,602,311.00

  Other equity instruments

     Including: Preferred shares

                    Perpetual bonds

  Capital reserves                                                 699,493,647.48                 699,493,647.48

  Less: Treasury stock                                             507,111,339.04                 486,922,944.94

  Other comprehensive income                                        63,060,913.72                  61,157,013.37

  Special reserves

  Surplus reserves                                               1,022,717,451.40               1,022,717,451.40

  General reserve

  Retained earnings                                              5,123,286,381.37               4,927,500,989.55

Total equity attributable to owners of the Company as the
                                                                 7,324,049,365.93               7,146,548,467.86
parent

Non-controlling interests                                          581,581,789.07                 579,276,247.53

Total owners’ equity                                            7,905,631,155.00               7,725,824,715.39

Total liabilities and owners’ equity                           10,858,794,197.15              10,537,759,811.84


Legal representative: Liu Zibin                                    The Company’s chief accountant: Zhang Hongmei


The Company’s financial manager: Zhang Keming

2. Balance Sheet of the Company as the Parent
                                                                                                       Unit: RMB

                                Item                        31 March 2019               31 December 2018

Current assets:

  Monetary capital                                                 319,391,672.74                 191,305,104.80



                                                                                                                14
Lu Thai Textile Co., Ltd.                                                    First Quarter Report 2019


  Trading financial assets                                  30,972,000.00

  Financial assets at fair value through profit or loss

  Derivative financial assets

  Notes and accounts receivable                            419,636,055.65             407,781,221.62

     Including: Notes receivable                            66,515,625.80              91,555,248.34

                 Accounts receivable                       353,120,429.85             316,225,973.28

  Prepayments                                              188,095,486.15             115,020,260.51

  Other receivables                                        383,532,060.83             395,847,213.77

     Including: Interest receivable

                 Dividends receivable

  Inventories                                             1,227,842,173.03          1,040,433,078.53

  Contractual assets

  Assets classified as held for sale

  Current portion of non-current assets                     50,261,580.38

  Other current assets                                      11,446,884.77              12,671,631.64

Total current assets                                      2,631,177,913.55          2,163,058,510.87

Non-current assets:

  Investments in debt obligations

  Available-for-sale financial assets                                                  73,112,000.00

  Investments in other debt obligations

  Held-to-maturity investments

  Long-term receivables

  Long-term equity investments                            2,232,449,925.94          2,165,711,579.69

  Investments in other equity instruments

  Other non-current financial assets                        31,018,515.95

  Investment property                                       14,621,498.88              14,804,592.72

  Fixed assets                                            2,728,416,151.75          2,731,726,695.28

  Construction in progress                                  44,468,537.11              61,182,771.86

  Right-of-use assets

  Intangible assets                                        240,229,901.63             242,204,032.54

  R&D expense

  Goodwill

  Long-term prepaid expense

  Deferred income tax assets                                50,493,439.44              52,758,961.05



                                                                                                    15
Lu Thai Textile Co., Ltd.                                                             First Quarter Report 2019


  Other non-current assets                                            6,372,220.90               6,047,443.10

Total non-current assets                                           5,348,070,191.60          5,347,548,076.24

Total assets                                                       7,979,248,105.15          7,510,606,587.11

Current liabilities:

  Short-term borrowings                                             804,969,880.02             622,604,447.52

  Trading financial liabilities

  Financial liabilities at fair value through profit or loss                                     4,877,600.00

  Derivative financial liabilities

  Notes and accounts payable                                        391,096,317.43             120,141,727.66

  Advances from customers                                            49,871,794.52              49,798,551.14

  Contractual liabilities

  Payroll payable                                                   150,291,903.61             240,090,943.88

  Taxes payable                                                       8,137,836.98              30,914,089.32

  Other payables                                                    301,321,888.56             303,672,590.72

     Including: Interest payable                                      1,793,887.09               2,475,549.88

                    Dividends payable                                   441,113.64                 441,113.64

  Liabilities directly associated with assets classified as held
for sale

  Current portion of non-current liabilities

  Other current liabilities

Total current liabilities                                          1,705,689,621.12          1,372,099,950.24

Non-current liabilities:

  Long-term borrowings

  Lease liabilities

  Long-term payables

  Long-term payroll payable                                          96,958,178.53              96,958,178.53

  Provisions

  Deferred income                                                    94,945,410.11              94,390,844.09

  Deferred income tax liabilities                                    16,607,730.43              16,699,530.43

  Other non-current liabilities

Total non-current liabilities                                       208,511,319.07             208,048,553.05

Total liabilities                                                  1,914,200,940.19          1,580,148,503.29

Owners’ equity:

  Share capital                                                     922,602,311.00             922,602,311.00

  Other equity instruments


                                                                                                             16
Lu Thai Textile Co., Ltd.                                                                  First Quarter Report 2019


     Including: Preferred shares

                 Perpetual bonds

  Capital reserves                                                      759,836,756.57              759,836,756.57

  Less: Treasury stock                                                  507,111,339.04              486,922,944.94

  Other comprehensive income                                             18,054,862.20                  520,200.00

  Special reserves

  Surplus reserves                                                    1,019,608,711.76            1,019,608,711.76

  Retained earnings                                                   3,852,055,862.47            3,714,813,049.43

Total owners’ equity                                                 6,065,047,164.96            5,930,458,083.82

Total liabilities and owners’ equity                                 7,979,248,105.15            7,510,606,587.11

3. Consolidated Income Statement
                                                                                                         Unit: RMB

                                Item                                Q1 2019                   Q1 2018

1. Revenue                                                            1,545,153,566.09            1,519,803,691.24

  Including: Operating revenue                                        1,545,153,566.09            1,519,803,691.24

2. Costs and expenses                                                 1,335,959,266.55            1,350,782,281.17

  Including: Cost of sales                                            1,073,032,409.07            1,085,683,246.68

              Taxes and surcharges                                       21,952,729.62               27,882,652.80

              Selling expense                                            39,973,056.09               30,483,720.76

              Administrative expense                                     87,221,760.41               78,629,472.18

              R&D expense                                                79,919,113.90               85,054,395.89

              Finance costs                                              30,901,482.17               43,774,185.06

                 Including: Interest expense                             20,172,898.97               10,069,958.48

                                   Interest income                        1,277,162.22                3,254,879.53

              Asset impairment loss                                           441,007.21                -725,392.20

              Credit impairment loss                                      2,517,708.08

Add: Other income                                                        20,199,549.00               13,538,655.19

      Return on investment (“-” for loss)                                   -93,250.75              2,439,952.13

         Including: Share of profit or loss of joint ventures and
                                                                                                         -56,232.67
associates

      Foreign exchange gain (“-” for loss)

      Net gain on exposure hedges (“-” for loss)

      Gain on changes in fair value (“-” for loss)                      5,108,600.00                7,895,000.00

      Asset disposal income (“-” for loss)                                   -4,492.87                -300,994.82




                                                                                                                  17
Lu Thai Textile Co., Ltd.                                                               First Quarter Report 2019


3. Operating profit (“-” for loss)                                   234,404,704.92            192,594,022.57

Add: Non-operating income                                                1,330,325.06              1,178,816.47

Less: Non-operating expense                                              1,124,658.73              1,054,317.03

4. Profit before tax (“-” for loss)                                  234,610,371.25            192,718,522.01

Less: Income tax expense                                                37,131,437.89             27,669,680.25

5. Net profit (“-” for net loss)                                     197,478,933.36            165,048,841.76

  5.1 By operating continuity

        5.1.1 Net profit from continuing operations (“-” for net
                                                                       197,478,933.36            165,048,841.76
loss)

        5.1.2 Net profit from discontinued operations (“-” for net
loss)

  5.2 By ownership

        5.2.1 Net profit attributable to owners of the Company as
                                                                       195,173,391.82            159,278,371.57
the parent

        5.2.1 Net profit attributable to non-controlling interests       2,305,541.54              5,770,470.19

6. Other comprehensive income, net of tax                              -15,630,761.85            -21,450,491.60

  Attributable to owners of the Company as the parent                  -15,630,761.85            -21,450,491.60

        6.1 Items that will not be reclassified to profit or loss

          6.1.1 Changes caused by remeasurements on defined
benefit pension schemes
          6.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
          6.1.3 Changes in the fair value of investments in other
equity instruments
          6.1.4 Changes in the fair value of the company’s credit
risks

          6.1.5 Other

        6.2 Items that will be reclassified to profit or loss          -15,630,761.85            -21,450,491.60

          6.2.1 Other comprehensive income that will be
reclassified to profit or loss under the equity method
          6.2.2 Changes in the fair value of investments in other
debt obligations
          6.2.3 Gain/Loss on changes in the fair value of
                                                                                                     504,900.00
available-for-sale financial assets
          6.2.4 Other comprehensive income arising from the
reclassification of financial assets
          6.2.5 Gain/Loss arising from the reclassification of
held-to-maturity investments to available-for-sale financial
assets



                                                                                                               18
Lu Thai Textile Co., Ltd.                                                                             First Quarter Report 2019


       6.2.6 Allowance for credit impairments in investments
in other debt obligations

       6.2.7 Reserve for cash flow hedges

       6.2.8 Differences arising from the translation of foreign
                                                                               -15,630,761.85                   -21,955,391.60
currency-denominated financial statements

       6.2.9 Other

  Attributable to non-controlling interests

7. Total comprehensive income                                                 181,848,171.51                   143,598,350.16

  Attributable to owners of the Company as the parent                         179,542,629.97                   137,827,879.97

  Attributable to non-controlling interests                                      2,305,541.54                     5,770,470.19

8. Earnings per share

  8.1 Basic earnings per share                                                           0.23                             0.17

  8.2 Diluted earnings per share                                                         0.23                             0.17

Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before

the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.


Legal representative: Liu Zibin                                               The Company’s chief accountant: Zhang Hongmei


The Company’s financial manager: Zhang Keming

4. Income Statement of the Company as the Parent
                                                                                                                     Unit: RMB

                                Item                                     Q1 2019                          Q1 2018

1. Operating revenue                                                         1,218,013,159.80                1,162,007,070.65

Less: Cost of sales                                                           914,084,322.63                   871,297,002.70

     Taxes and surcharges                                                       14,774,890.71                   21,573,452.57

     Selling expense                                                            24,925,715.73                    17,199,119.93

     Administrative expense                                                     54,428,690.80                   53,488,083.23

     R&D expense                                                                53,869,453.01                   59,162,936.09

     Finance costs                                                               6,406,772.73                   22,144,987.67

       Including: Interest expense                                               6,261,332.41                     2,010,358.64

                      Interest income                                              520,856.66                     1,411,026.60

     Asset impairment loss                                                                                        1,683,200.50

     Credit impairment loss                                                      1,588,230.27

Add: Other income                                                               11,532,089.34                     8,568,738.83

      Return on investment (“-” for loss)                                     -1,534,961.26                     1,461,867.85




                                                                                                                             19
Lu Thai Textile Co., Ltd.                                                               First Quarter Report 2019


           Including: Share of profit or loss of joint ventures and
                                                                                                     -56,232.67
associates

         Net gain on exposure hedges (“-” for loss)

         Gain on changes in fair value (“-” for loss)                  5,108,600.00              6,736,100.00

         Asset disposal income (“-” for loss)                            -19,705.25             -8,943,719.11

2. Operating profit (“-” for loss)                                   163,021,106.75            123,281,275.53

Add: Non-operating income                                                1,009,494.98                899,417.77

Less: Non-operating expense                                               422,145.43                 335,839.31

3. Profit before tax (“-” for loss)                                  163,608,456.30            123,844,853.99

Less: Income tax expense                                                26,977,643.26             19,283,743.91

4. Net profit (“-” for net loss)                                     136,630,813.04            104,561,110.08

  4.1 Net profit from continuing operations (“-” for net loss)       136,630,813.04            104,561,110.08

  4.2 Net profit from discontinued operations (“-” for net loss)

5. Other comprehensive income, net of tax                                                            504,900.00

  5.1 Items that will not be reclassified to profit or loss

        5.1.1 Changes caused by remeasurements on defined
benefit pension schemes
        5.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
        5.1.3 Changes in the fair value of investments in other
equity instruments
        5.1.4 Changes in the fair value of the company’s credit
risks

        5.1.5 Other

  5.2 Items that will be reclassified to profit or loss                                              504,900.00

        5.2.1 Other comprehensive income that will be reclassified
to profit or loss under the equity method
        5.2.2 Changes in the fair value of investments in other debt
obligations
        5.2.3 Gain/Loss on changes in the fair value of
                                                                                                     504,900.00
available-for-sale financial assets
        5.2.4 Other comprehensive income arising from the
reclassification of financial assets
        5.2.5 Gain/Loss arising from the reclassification of
held-to-maturity investments to available-for-sale financial
assets
        5.2.6 Allowance for credit impairments in investments in
other debt obligations

        5.2.7 Reserve for cash flow hedges



                                                                                                               20
Lu Thai Textile Co., Ltd.                                                                       First Quarter Report 2019


        5.2.8 Differences arising from the translation of foreign
currency-denominated financial statements

        5.2.9 Other

6. Total comprehensive income                                             136,630,813.04                 105,066,010.08

7. Earnings per share

    7.1 Basic earnings per share                                                     0.16                           0.11

    7.2 Diluted earnings per share                                                   0.16                           0.11

5. Consolidated Cash Flow Statement
                                                                                                               Unit: RMB

                                   Item                                   Q1 2019                    Q1 2018

1. Cash flows from operating activities:

  Proceeds from sale of commodities and rendering of services              1,494,044,826.59            1,481,659,910.33

  Tax rebates                                                                 55,121,275.16               70,407,971.68

  Cash generated from other operating activities                              27,635,093.30               37,904,123.48

Subtotal of cash generated from operating activities                       1,576,801,195.05            1,589,972,005.49

  Payments for commodities and services                                    1,012,742,338.01              860,039,261.70

  Cash paid to and for employees                                             497,105,229.34              496,773,800.61

  Taxes paid                                                                  93,875,522.94               68,934,998.71

  Cash used in other operating activities                                     62,792,284.92               80,105,117.34

Subtotal of cash used in operating activities                              1,666,515,375.21            1,505,853,178.36

Net cash generated from/used in operating activities                         -89,714,180.16               84,118,827.13

2. Cash flows from investing activities:

  Proceeds from disinvestment                                                 30,000,000.00

  Return on investment                                                         2,402,138.74

  Net proceeds from the disposal of fixed assets, intangible assets and
                                                                                    16,868.25                544,564.38
other long-lived assets
  Net proceeds from the disposal of subsidiaries and other business
units

  Cash generated from other investing activities                               2,769,450.30                4,259,032.24

Subtotal of cash generated from investing activities                          35,188,457.29                4,803,596.62

  Payments for the acquisition of fixed assets, intangible assets and
                                                                             264,858,846.65              112,575,998.71
other long-lived assets

  Payments for investments                                                    50,000,000.00

  Net increase in pledged loans granted

  Net payments for the acquisition of subsidiaries and other business
units



                                                                                                                       21
Lu Thai Textile Co., Ltd.                                                                    First Quarter Report 2019


  Cash used in other investing activities                                     4,807,200.00

Subtotal of cash used in investing activities                               319,666,046.65            112,575,998.71

Net cash generated from/used in investing activities                       -284,477,589.36           -107,772,402.09

3. Cash flows from financing activities:

  Capital contributions received                                                                          500,000.00

     Including: Capital contributions by non-controlling interests to
                                                                                                          500,000.00
subsidiaries

  Borrowings obtained                                                     1,227,747,399.37            736,133,783.53

  Net proceeds from the issuance of bonds

  Cash generated from other financing activities                             10,000,000.00             21,300,000.00

Subtotal of cash generated from financing activities                      1,237,747,399.37            757,933,783.53

  Repayments of borrowings                                                  818,989,136.72            484,376,409.32

  Payments for interest and dividends                                        23,656,295.67              9,855,785.25

     Including: Dividends paid by subsidiaries to non-controlling
interests

  Cash used in other financing activities                                    12,862,424.99

Subtotal of cash used in financing activities                               855,507,857.38            494,232,194.57

Net cash generated from/used in financing activities                        382,239,541.99            263,701,588.96

4. Effect of foreign exchange rate changes on cash and cash equivalents      -5,071,046.32             -7,731,641.43

5. Net increase in cash and cash equivalents                                  2,976,726.15            232,316,372.57

Add: Cash and cash equivalents, beginning of the period                     535,134,772.90            676,639,212.86

6. Cash and cash equivalents, end of the period                             538,111,499.05            908,955,585.43

6. Cash Flow Statement of the Company as the Parent
                                                                                                            Unit: RMB

                                   Item                                   Q1 2019                 Q1 2018

1. Cash flows from operating activities:

  Proceeds from sale of commodities and rendering of services             1,188,755,766.98          1,402,617,102.18

  Tax rebates                                                                39,801,136.87             49,708,933.68

  Cash generated from other operating activities                             12,674,765.62             15,058,269.35

Subtotal of cash generated from operating activities                      1,241,231,669.47          1,467,384,305.21

  Payments for commodities and services                                     684,174,487.67            917,764,028.02

  Cash paid to and for employees                                            346,747,962.03            358,009,124.41

  Taxes paid                                                                 64,735,924.66             44,479,611.73

  Cash used in other operating activities                                    40,577,138.22             31,339,072.23

Subtotal of cash used in operating activities                             1,136,235,512.58          1,351,591,836.39


                                                                                                                    22
Lu Thai Textile Co., Ltd.                                                                   First Quarter Report 2019


Net cash generated from/used in operating activities                      104,996,156.89             115,792,468.82

2. Cash flows from investing activities:

  Proceeds from disinvestment                                              30,000,000.00

  Return on investment                                                      2,402,138.74

  Net proceeds from the disposal of fixed assets, intangible assets and
                                                                                                      64,995,332.71
other long-lived assets
  Net proceeds from the disposal of subsidiaries and other business
units

  Cash generated from other investing activities                           67,060,381.68             244,162,209.77

Subtotal of cash generated from investing activities                       99,462,520.42             309,157,542.48

  Payments for the acquisition of fixed assets, intangible assets and
                                                                           50,596,052.64              43,650,645.56
other long-lived assets

  Payments for investments                                                117,202,000.00             256,206,500.00

  Net payments for the acquisition of subsidiaries and other business
units

  Cash used in other investing activities                                  75,781,620.00             167,497,600.00

Subtotal of cash used in investing activities                             243,579,672.64             467,354,745.56

Net cash generated from/used in investing activities                      -144,117,152.22           -158,197,203.08

3. Cash flows from financing activities:

  Capital contributions received

  Borrowings obtained                                                     790,254,327.80             475,339,258.78

  Net proceeds from the issuance of bonds

  Cash generated from other financing activities

Subtotal of cash generated from financing activities                      790,254,327.80             475,339,258.78

  Repayments of borrowings                                                599,478,751.52             283,270,165.87

  Payments for interest and dividends                                       9,592,279.88               4,169,374.27

  Cash used in other financing activities                                  12,862,424.99

Subtotal of cash used in financing activities                             621,933,456.39             287,439,540.14

Net cash generated from/used in financing activities                      168,320,871.41             187,899,718.64

4. Effect of foreign exchange rate changes on cash and cash equivalents     -1,113,308.14             -2,410,353.03

5. Net increase in cash and cash equivalents                              128,086,567.94             143,084,631.35

Add: Cash and cash equivalents, beginning of the period                   191,305,104.80             267,809,829.78

6. Cash and cash equivalents, end of the period                           319,391,672.74             410,894,461.13




                                                                                                                   23
Lu Thai Textile Co., Ltd.                                                              First Quarter Report 2019


II Adjustments to the Financial Statements

1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standards Governing Financial Instruments, Revenue or Leases

√ Applicable □ Not applicable
Consolidated Balance Sheet
                                                                                                     Unit: RMB

                       Item                 31 December 2018         1 January 2019             Adjusted

Current assets:

   Monetary capital                                545,502,709.36          545,502,709.36

   Trading financial assets                       N/A                       60,612,000.00        60,612,000.00

   Notes and accounts receivable                   549,265,034.81          549,265,034.81

     Including: Notes receivable                   174,657,918.26          174,657,918.26

                  Accounts receivable              374,607,116.55          374,607,116.55

  Prepayments                                      149,582,616.21          149,582,616.21

   Other receivables                                63,012,001.10           63,012,001.10

   Inventories                                    2,093,366,992.30        2,093,366,992.30

   Other current assets                             86,366,454.56           86,366,454.56

Total current assets                              3,487,095,808.34        3,547,707,808.34       60,612,000.00

Non-current assets:

   Available-for-sale financial assets              85,112,000.00         N/A                   -85,112,000.00

   Long-term receivables                            10,693,844.75           10,693,844.75

   Long-term equity investments                     96,018,463.65           95,554,809.90          -463,653.75

  Investments in other equity instruments         N/A                       12,000,000.00        12,000,000.00

  Other non-current financial assets              N/A                       31,018,515.95        31,018,515.95

   Investment property                              22,880,242.95           22,880,242.95

   Fixed assets                                   5,748,562,385.35        5,748,562,385.35

   Construction in progress                        337,230,646.42          337,230,646.42

   Intangible assets                               478,689,064.45          478,689,064.45

   Goodwill                                         20,613,803.29           20,613,803.29

   Long-term prepaid expense                       119,126,407.71          119,126,407.71

   Deferred income tax assets                       88,636,929.06           88,636,929.06

   Other non-current assets                         43,100,215.87           43,100,215.87

Total non-current assets                          7,050,664,003.50        7,008,106,865.70      -42,557,137.80

Total assets                                     10,537,759,811.84      10,555,814,674.04        18,054,862.20


                                                                                                              24
Lu Thai Textile Co., Ltd.                                                                                First Quarter Report 2019


Current liabilities:

  Short-term borrowings                                    1,325,273,780.05               1,325,273,780.05

  Financial liabilities at fair value through
                                                               4,877,600.00               N/A                       -4,877,600.00
profit or loss

  Derivative financial liabilities                                                              4,877,600.00        4,877,600.00

  Notes and accounts payable                                 353,688,510.95                 353,688,510.95

  Advances from customers                                    105,562,378.66                 105,562,378.66

  Payroll payable                                            325,998,210.17                 325,998,210.17

  Taxes payable                                               43,556,823.75                  43,556,823.75

  Other payables                                             215,946,987.68                 215,946,987.68

     Including: Interest payable                               3,068,841.54                     3,068,841.54

                    Dividends payable                            441,113.64                      441,113.64

Total current liabilities                                  2,374,904,291.26               2,374,904,291.26

Non-current liabilities:

  Long-term borrowings                                       170,019,083.89                 170,019,083.89

  Long-term payroll payable                                   96,958,178.53                  96,958,178.53

  Deferred income                                            140,183,446.39                 140,183,446.39

  Deferred income tax liabilities                             28,030,096.38                  27,938,296.38             -91,800.00

  Other non-current liabilities                                1,840,000.00                     1,840,000.00

Total non-current liabilities                                437,030,805.19                 436,939,005.19             -91,800.00

Total liabilities                                          2,811,935,096.45               2,811,843,296.45             -91,800.00

Owners’ equity:

  Share capital                                              922,602,311.00                 922,602,311.00

  Capital reserves                                           699,493,647.48                 699,493,647.48

  Less: Treasury stock                                       486,922,944.94                 486,922,944.94

  Other comprehensive income                                  61,157,013.37                  78,691,675.57         17,534,662.20

  Surplus reserves                                         1,022,717,451.40               1,022,717,451.40

  Retained earnings                                        4,927,500,989.55               4,928,112,989.55            612,000.00

Total equity attributable to owners of the
                                                           7,146,548,467.86               7,164,695,130.06         18,146,662.20
Company as the parent

Non-controlling interests                                    579,276,247.53                 579,276,247.53

Total owners’ equity                                      7,725,824,715.39               7,743,971,377.59         18,146,662.20

Total liabilities and owners’ equity                     10,537,759,811.84              10,555,814,674.04         18,054,862.20

Note for adjustment:
In 2017, Ministry of Finance respectively revised and issued the Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments, the Accounting Standards for Business Enterprises No. 23 – Transfer of Financial Assets,

                                                                                                                                25
Lu Thai Textile Co., Ltd.                                                                                     First Quarter Report 2019


the Accounting Standards for Business Enterprises No. 24 – Hedging Accounting, and the Accounting Standards for Business
Enterprises No. 37 – Presentation of Financial Instruments (hereinafter jointly referred to as “new standards governing financial
instruments”), which required that enterprises listed domestically shall implement it from 1 January 2019. According to the standards,
enterprises shall, on implementation date of the standards, classify and measure financial instruments according to regulations, and
adjustment is not needed if the involved previous comparative data of financial statements is different from the data under the “new
standards governing financial instruments. For the balance between the original carrying value of financial instruments and the new
carrying value on implementation date of the standards, the amount of the items on 1 January 2019 in financial statements shall be
adjusted, such as earned earnings, other comprehensive income.
The Company began to implement the new standards governing financial instruments from 1 January 2019. According to Notes of
Revising and Printing the Format of 2018 General Enterprises Financial Statement issued by the Ministry of Finance, the Company
shall reclassify the original financial assets (liabilities) into trading financial assets, investments in other equity instruments, other
non-current financial assets, and derivative financial liabilities. For details about the influenced items and amounts, see the above
adjusted financial statements.


Balance Sheet of the Company as the Parent
                                                                                                                              Unit: RMB

                          Item                           31 December 2018               1 January 2019                 Adjusted

Current assets:

   Monetary capital                                             191,305,104.80                 191,305,104.80

   Trading financial assets                                     N/A                             60,612,000.00            60,612,000.00

   Notes and accounts receivable                                407,781,221.62                 407,781,221.62

     Including: Notes receivable                                 91,555,248.34                  91,555,248.34

                  Accounts receivable                           316,225,973.28                 316,225,973.28

  Prepayments                                                   115,020,260.51                 115,020,260.51

   Other receivables                                            395,847,213.77                 395,847,213.77

   Inventories                                                1,040,433,078.53               1,040,433,078.53

   Other current assets                                          12,671,631.64                  12,671,631.64

Total current assets                                          2,163,058,510.87               2,223,670,510.87            60,612,000.00

Non-current assets:

   Available-for-sale financial assets                            73,112,000.00               N/A                       -73,112,000.00

   Investments in other debt obligations                        N/A

   Long-term equity investments                               2,165,711,579.69               2,165,247,925.94               -463,653.75

  Other non-current financial assets                            N/A                             31,018,515.95            31,018,515.95

   Investment property                                           14,804,592.72                  14,804,592.72

   Fixed assets                                               2,731,726,695.28               2,731,726,695.28

   Construction in progress                                      61,182,771.86                  61,182,771.86

   Intangible assets                                            242,204,032.54                 242,204,032.54



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Lu Thai Textile Co., Ltd.                                                                                First Quarter Report 2019


  Deferred income tax assets                                  52,758,961.05                52,758,961.05

  Other non-current assets                                     6,047,443.10                 6,047,443.10

Total non-current assets                                   5,347,548,076.24             5,304,990,938.44          -42,557,137.80

Total assets                                               7,510,606,587.11             7,528,661,449.31           18,054,862.20

Current liabilities:

  Short-term borrowings                                      622,604,447.52               622,604,447.52

  Financial liabilities at fair value through profit
                                                               4,877,600.00              N/A                        -4,877,600.00
or loss

  Derivative financial liabilities                                                          4,877,600.00            4,877,600.00

  Notes and accounts payable                                 120,141,727.66               120,141,727.66

  Advances from customers                                     49,798,551.14                49,798,551.14

  Payroll payable                                            240,090,943.88               240,090,943.88

  Taxes payable                                               30,914,089.32                30,914,089.32

  Other payables                                             303,672,590.72               303,672,590.72

     Including: Interest payable                               2,475,549.88                 2,475,549.88

                    Dividends payable                            441,113.64                    441,113.64

Total current liabilities                                  1,372,099,950.24             1,372,099,950.24

Non-current liabilities:

  Long-term payroll payable                                   96,958,178.53                96,958,178.53

  Deferred income                                             94,390,844.09                94,390,844.09

  Deferred income tax liabilities                             16,699,530.43                16,607,730.43               -91,800.00

Total non-current liabilities                                208,048,553.05               207,956,753.05               -91,800.00

Total liabilities                                          1,580,148,503.29             1,580,056,703.29               -91,800.00

Owners’ equity:

  Share capital                                              922,602,311.00               922,602,311.00

  Capital reserves                                           759,836,756.57               759,836,756.57

  Less: Treasury stock                                       486,922,944.94               486,922,944.94

  Other comprehensive income                                     520,200.00                18,054,862.20           17,534,662.20

  Surplus reserves                                         1,019,608,711.76             1,019,608,711.76

  Retained earnings                                        3,714,813,049.43             3,715,425,049.43              612,000.00

Total owners’ equity                                      5,930,458,083.82             5,948,604,746.02           18,146,662.20

Total liabilities and owners’ equity                      7,510,606,587.11             7,528,661,449.31           18,054,862.20

Note for adjustment:
In 2017, Ministry of Finance respectively revised and issued the Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments, the Accounting Standards for Business Enterprises No. 23 – Transfer of Financial Assets,



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Lu Thai Textile Co., Ltd.                                                                                        First Quarter Report 2019


the Accounting Standards for Business Enterprises No. 24 – Hedging Accounting, and the Accounting Standards for Business
Enterprises No. 37 – Presentation of Financial Instruments (hereinafter jointly referred to as “new standards governing financial
instruments”), which required that enterprises listed domestically shall implement it from 1 January 2019. According to the standards,
enterprises shall, on implementation date of the standards, classify and measure financial instruments according to regulations, and
adjustment is not needed if the involved previous comparative data of financial statements is different from the data under the “new
standards governing financial instruments. For the balance between the original carrying value of financial instruments and the new
carrying value on implementation date of the standards, the amount of the items on 1 January 2019 in financial statements shall be
adjusted, such as earned earnings, other comprehensive income.
The Company began to implement the new standards governing financial instruments from 1 January 2019. According to Notes of
Revising and Printing the Format of 2018 General Enterprises Financial Statement issued by the Ministry of Finance, the Company
shall reclassify the original financial assets (liabilities) into trading financial assets, other non-current financial assets, and derivative
financial liabilities. For details about the influenced items and amounts, see the above adjusted financial statements.

III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.

□Yes √ No

These financial statements have not been audited by such an auditor.




                                                                  Signature of the Chairman of the Board: Liu Zibin
                                                                           Lu Thai Textile Co., Ltd.
                                                                                 30 April 2019




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