Lu Thai Textile Co., Ltd. Third Quarter Report 2019
LU THAI TEXTILE CO., LTD.
THIRD QUARTER REPORT 2019
October 2019
1
Lu Thai Textile Co., Ltd. Third 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. (together with its
consolidated subsidiaries, the “Company”, except where the context otherwise requires)
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.
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
30 September 2019 31 December 2018 Change (%)
Total assets (RMB) 11,348,273,338.95 10,537,759,811.84 7.69%
Equity attributable to the listed company’s
7,351,503,162.46 7,146,548,467.86 2.87%
shareholders (RMB)
Q3 2019 YoY change (%) Q1-Q3 2019 YoY change (%)
Operating revenue (RMB) 1,626,165,317.03 -6.71% 4,811,613,661.04 -4.22%
Net profit attributable to the listed company’s
176,453,154.53 -15.79% 587,899,371.12 0.17%
shareholders (RMB)
Net profit attributable to the listed company’s
172,442,753.62 -23.06% 549,259,289.55 -6.99%
shareholders before exceptional items (RMB)
Net cash generated from/used in operating activities
-- -- 481,803,616.13 -57.10%
(RMB)
Basic earnings per share (RMB/share) 0.20 -13.04% 0.68 6.25%
Diluted earnings per share (RMB/share) 0.20 -13.04% 0.68 6.25%
Weighted average return on equity (%) 2.44% -0.51% 8.14% 0.06%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1-Q3 2019 Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) -510,901.65
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 35,960,594.57
government’s uniform standards)
Gain/Loss on changes in fair value arising from holding of trading financial assets and
liabilities, derivative financial assets and liabilities and investment income from disposal of
trading financial assets and liabilities, derivative financial assets and liabilities and other 19,090,653.31
investments in debt obligation other than effective hedge business related to the Company’s
normal operating businesses
Non-operating income and expense other than above -5,090,217.43
Less: Income tax effects 7,880,401.60
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Non-controlling interests effects (net of tax) 2,929,645.63
Total 38,640,081.57 --
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 30 September 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 preferred shareholders with resumed
Number of ordinary shareholders 56,184 0
voting rights (if any)
Top 10 shareholders
Shares in pledge or
Shareholdin Restricted
Name of shareholder Nature of shareholder Number of shares frozen
g percentage shares
Status Shares
Domestic
Zibo Lucheng Textile Investment Co.,
non-state-owned legal 16.36% 140,353,583
Ltd.
person
Tailun (Thailand) Textile Co., Ltd. Foreign legal person 13.78% 118,232,400 118,232,400
Hong Kong Securities Clearing Co. Ltd Foreign legal person 3.03% 25,984,811
Central Huijin Assets Management Co., State-owned legal
2.37% 20,315,300
Ltd. person
T.ROWE PRICE INTL DISCOVERY
Foreign legal person 2.32% 19,948,219
FUND
Domestic
China Securities Finance Corporation
non-state-owned legal 2.13% 18,313,391
Limited
person
Hong Kong Monetary
Foreign legal person 2.04% 17,487,884
Authority-Self-owned Fund
National Social Security Fund Portfolio
Other 1.40% 11,999,897
103
National Social Security Fund
Other 0.95% 8,190,051
Portfolio 413
ASSICURAZIONI Other 0.76% 6,558,889
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
GENERALI-DIVIDEND 2
Top 10 unrestricted shareholders
Unrestricted Shares by type
Name of shareholder
shares Type Shares
Zibo Lucheng Textile Investment Co., Ltd. 140,353,583 RMB-denominated ordinary stock 140,353,583
Hong Kong Securities Clearing Co. Ltd 25,984,811 RMB-denominated ordinary stock 25,984,811
Central Huijin Assets Management Co., Ltd. 20,315,300 RMB-denominated ordinary stock 20,315,300
T.ROWE PRICE INTL DISCOVERY FUND 19,948,219 Domestically listed foreign stock 19,948,219
China Securities Finance Corporation Limited 18,313,391 RMB-denominated ordinary stock 18,313,391
Hong Kong Monetary Authority-Self-owned Fund 17,487,884 RMB-denominated ordinary stock 17,487,884
National Social Security Fund Portfolio 103 11,999,897 RMB-denominated ordinary stock 11,999,897
National Social Security Fund Portfolio 413 8,190,051 RMB-denominated ordinary stock 8,190,051
ASSICURAZIONI GENERALI-DIVIDEND 2 6,558,889 RMB-denominated ordinary stock 6,558,889
RBC EMERGING MARKETS SMALL CAP EQUITY FUND 6,181,462 Domestically listed foreign stock 6,181,462
Zibo Lucheng Textile Investment Co., Ltd. is the largest shareholder
and the actual controller of the Company. Tailun (Thailand) Textile
Co., Ltd. is the second largest shareholder and the foreign sponsor of
Related or acting-in-concert parties among shareholders above
the Company. All the other shareholders are holding tradable
A-shares or B-shares. And it is unknown whether there is any related
party or acting-in-concert party among them.
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.
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
30 September 31 December
Item Change Reason for change
2019 2018
Increase in prepayments for agricultural means
Prepayments 196,906,160.26 149,582,616.21 31.64%
of production in the Reporting Period
Current portion of Purchase of trust financial products in the
52,256,130.79 - 100.00%
non-current assets Reporting Period
Transfer of operating leased houses into
Investment property 38,266,359.35 22,880,242.95 67.25%
investment property in the Reporting Period
Construction in Increase in inputs in Yarn Dye II Project of Lu
502,791,371.42 337,230,646.42 49.09%
progress Thai (Vietnam) and equipment
1,325,273,780.0 Increase in borrowings from banks in the
Short-term borrowings 2,117,741,665.40 59.80%
5 Reporting Period
Increase in bank’s acceptance bills opened for
Notes payable 22,125,109.37 502,347.05 4304.35%
payments of materials in the Reporting Period
Payments for raw materials and equipment in the
Accounts payable 229,909,541.78 353,186,163.90 -34.90%
Reporting Period
Current portion of Increase in current portion of long-term
111,331,864.72 - 100.00%
non-current liabilities borrowings
Reclassification of current portion of long-term
Long-term borrowings 18,961,030.32 170,019,083.89 -88.85% borrowings into current portion of non-current
liabilities
Capital stock premium from repurchased
Capital reserve 256,632,428.28 699,493,647.48 -63.31%
B-shares cancelled in the Reporting Period
Cancellation of repurchased B-shares in the
Treasury stock - 486,922,944.94 -100.00%
Reporting Period
Increase in differences arising from the
Other comprehensive
111,894,866.80 61,157,013.37 82.96% translation of foreign currency-denominated
income
financial statements in the Reporting Period
Item Q1~Q3 2019 Q1~Q3 2018 Change Reason for change
Increase in interest expense in the Reporting
Finance cost 61,156,464.30 37,733,821.10 62.07%
Period
Investment income 16,777,341.81 -18,388,041.25 191.24% Increase in income from investments in
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
derivative financial instruments and associated
enterprises in the Reporting Period
Losses on changes in fair value of
Gain on changes in fair
5,638,067.04 -44,112,150.00 112.78% fails-to-delivery derivative financial instruments
value
of the same period of last year
Recognition of disposal income from demolition
Asset disposal income 162,416.20 23,233,253.44 -99.30% by Xinjiang Lu Thai in the same period of last
year
Payments for relief donations in the Reporting
Non-operating expense 9,785,667.21 3,623,862.73 170.03%
Period
Increase in net cash outflow in relation to
operating activities: 1. YoY increase of RMB331
million in cash paid for purchase of commodities
Net cash generated and acceptance of labor services, which driven
1,123,152,616.7
from/used in operating 481,803,616.13 -57.10% by increase in payments for cotton; 2. YoY
5
activities decrease of RMB222 million in cash received
from sales of commodities and providing of labor
services, which driven by decline in sales of
products
YoY decrease in payments for B-share
Net cash generated
repurchase and YoY increase in cash received
from/used in financing 212,302,378.28 -288,801,161.03 173.51%
from obtaining borrowings in the Reporting
activities
Period
II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
The 28th Meeting of the 8th Board of Directors reviewed and approved ten proposals on 23 May 2019, including the Proposal of
Meeting the Conditions for Public Issuance of A-share Convertible Corporate Bonds, the Proposal of Plan on Public Issuance of
A-share Convertible Corporate Bonds and the Proposal of Preplan on Public Issuance of A-share Convertible Corporate Bonds. For
details, please refer to the announcement (announcement No.: 2019-039) disclosed on www.cninfo.com.cn on 24 May 2019. The 3rd
Extraordinary General Meeting of 2019 reviewed and approved ten proposals on 16 September 2019, including the Proposal of
Meeting the Conditions for Public Issuance of A-share Convertible Corporate Bonds, the Proposal of Plan on Public Issuance of
A-share Convertible Corporate Bonds, the Proposal of Preplan on Public Issuance of A-share Convertible Corporate Bonds and the
Proposal of Change in Audit Institution. For details, please refer to the announcement (announcement No.: 2019-059) disclosed on
www.cninfo.com.cn on 17 September 2019. The Company received the Acceptance Form on Application for CSRC Administrative
License issued by CSRC (No. 192620) on 15 October 2019. For details, please refer to the relevant announcement (announcement
No.: 2019-064) disclosed on www.cninfo.com.cn on 16 October 2019.
Overview of significant events Disclosure date Announcement index
The progress of relevant matters for public 24 May 2019 Announcements on www.cninfo.com.cn
issuance of A-share Convertible Corporate 17 September 2019 Announcements on www.cninfo.com.cn
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Bonds 15 October 2019 Announcements on www.cninfo.com.cn
Progress of any share repurchase:
□ Applicable √ Not applicable
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 Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Wealth Management Entrustment
√ Applicable □ Not applicable
Unit: RMB'0,000
Type of wealth Outstanding amount
Funding source Principal Overdue amount
management before maturity
Other Self-funded 0 3,000 0
Trust finance products Self-funded 5,000 5,000 0
Total 5,000 8,000 0
High-risk wealth management entrustments with amounts that are individually significant, or with low security, low liquidity, or no
protection of the principal:
√ Applicable □ Not applicable
Unit: RMB’0,000
Collecti Throu Overvie
Refere Actual
Type of Invest Expect on/paym Impair gh Any w and
nce gain/lo
wealth Fundin ment ed ent of ment prescri plan for index to
Type of Princi Start End Way of annual ss in
Trustee manage g with return gain/loss allowa bed further more
trustee pal date date payback ized Report
ment source princi (if in nce (if proced entrustm informat
return ing
product pal any) Reportin any) ure or ent ion (if
(%) Period
g Period not any)
Gopher Fund 22 26 Granti Annual
Fixed-in Self-fu Tempora
Asset corporati 3,000 Dece Dece ng of payment 8.50% 255 250.32 N/A Yes
come nded rily no
Managemen on mber mber trust of
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
t Co., Ltd 2017 2019 loans interests
to and
HOM payment
E of
CRED principal
IT upon
maturity
Payment
of
Invest
Trust 7 9 principal
Avic trust Fixed-in Self-fu ment Tempora
compan 5,000 March March and 8.00% 400 0 N/A Yes
co. LTD come nded trust rily no
y 2019 2020 interest
assets
upon
maturity
Total 8,000 -- -- -- -- -- -- 655 250.32 -- -- -- --
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
Ending
Relate
Relation Impair investment Actual
d-part Type
ship Initial Purchased in Sold in ment Ending as % of gain/loss
Counterpa y of Start Beginning
with the investment End date Reporting Reporting allowa investme the in
rty transac derivat date investment
Compan amount Period Period nce (if nt Company’ Reporting
tion or ive
y any) s ending Period
not
net assets
Forwa
rd
11
Commerci Non-con exchan 19 June
No 98,187.76 November 6,512.05 91,675.71 93,944.02 4,243.74 0.53% 776.34
al bank nected ge 2018
2019
settle
ment
Foreig
n 23
Commerci Non-con 30 August
No exchan 16,018.76 March 1,909.89 14,108.87 16,018.76 0 40.15
al bank nected 2019
ge 2018
option
Commerci Non-con Forwa 28 10 May
No 3,049.7 1,610.11 1,439.59 3,049.7 0 50.04
al bank nected rd Septemb 2019
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
exchan er 2018
ge
transac
tions
Total 117,256.22 -- -- 10,032.05 107,224.17 113,012.48 4,243.74 0.53% 866.53
Funding source Self-funded
Legal matters involved (if applicable) N/A
Disclosure date of board of directors 27 April 2018
announcement on approval of derivative
30 April 2019
investment (if any)
Disclosure date of general meeting of
shareholders announcement on approval of
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 market risk, liquidity risk and credit risk, operation risk and risk of laws and
regulation.
1. Market risk: when the international and domestic economic situations change, the corresponding
changes in exchange rates and interest rates may have an adverse impact on the financial derivatives
transactions of the Company. Precautionary measures to be taken include: the Company chooses
risk-controlled financial 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.
Analysis of risks and control measures associated 2. Liquidity risk and credit risk: a credit risk arising from failure of the contractually due Company
with derivative investments held in Reporting or counterparty in performing the contract due to liquidity or factors other than liquidity.
Period (including but not limited to market risk, Precautionary measures to be taken include: the Company determines the upper limit of derivatives
liquidity risk, credit risk, operational risk, legal transaction amounts according to production and operation scale as well as foreign exchange income,
risk, etc.) 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
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
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 the 26th Meeting of the 8th Board of Directors on 29
April 2019, and performed relevant information disclosure responsibilities.
1. As of 30 September 2019, the Company held financial derivative worth USD6 million in totals,
which was forward settlement of exchange executed in accordance with the contracts. The latest
contract expiration date was 11 November 2019. Financial derivatives occupied 0.53 % of the net
assets as at the period end.
Changes in market prices or fair value of
2. In Q1~Q3 2019, the amount of maturing financial derivatives of the Company amounted to
derivative investments in Reporting Period (fair
USD165.0969 million which was executed as per the contract in full, which generated an income of
value analysis should include measurement
RMB8.6653 million. The delivery amount of forward settlement of exchange amounted to
method and related assumptions and parameters)
USD137.1132 million which generated an income of RMB7.7634 million; the delivery amount of
foreign exchange options was USD23.5 million which generated an income of RMB0.4015 million.
The delivery amount of foreign exchange transaction amounted to USD4.4837 million which
generated an income of RMB0.5004 million.
Major changes in accounting policies and specific
accounting principles adopted for derivative
No significant changes
investments in Reporting Period compared to last
reporting period
The Company’s independent directors Zhou Zhiji, Bi Xiuli, Pan Ailing, Wang Xinyu and Qu
Dongmei concerning conducting derivatives business, have issued the following professional advice:
We are of the opinion that it will strengthen the Company’s competitiveness to use derivative
transactions with focus on forward settlement and purchase as an effective tool to avoid foreign
Opinion of independent directors on derivative
exchange risks, to strengthen the relevant internal control and to carry out the loss and risk
investments and risk control
prevention measures so as to improve the operation 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.
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
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.
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Lu Thai Textile Co., Ltd.
30 September 2019
Unit: RMB
Item 30 September 2019 31 December 2018
Current assets:
Monetary capital 683,353,628.74 545,502,709.36
Trading financial assets 31,501,467.04
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable 129,159,118.93 174,657,918.26
Accounts receivable 379,514,852.15 374,607,116.55
Accounts receivable financing
Prepayments 196,906,160.26 149,582,616.21
Other receivables 73,542,617.81 63,012,001.10
Including: Interest receivable 2,365,415.76
Dividends receivable
Financial assets purchased under resale agreements
Inventories 2,449,924,067.98 2,093,366,992.30
Contractual assets
Assets classified as held for sale
Current portion of non-current assets 52,256,130.79
Other current assets 72,598,373.59 86,366,454.56
Total current assets 4,068,756,417.29 3,487,095,808.34
Non-current assets:
Investments in debt obligations
Available-for-sale financial assets 85,112,000.00
Investments in other debt obligations
Held-to-maturity investments
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Long-term receivables 8,818,242.91 10,693,844.75
Long-term equity investments 98,925,703.04 96,018,463.65
Investments in other equity instruments 12,000,000.00
Other non-current financial assets 31,018,515.95
Investment property 38,266,359.35 22,880,242.95
Fixed assets 5,771,423,930.07 5,748,562,385.35
Construction in progress 502,791,371.42 337,230,646.42
Intangible assets 528,724,915.77 478,689,064.45
Goodwill 20,563,803.29 20,613,803.29
Long-term prepaid expense 150,370,671.30 119,126,407.71
Deferred income tax assets 80,480,242.51 88,636,929.06
Other non-current assets 36,133,166.05 43,100,215.87
Total non-current assets 7,279,516,921.66 7,050,664,003.50
Total assets 11,348,273,338.95 10,537,759,811.84
Current liabilities:
Short-term borrowings 2,117,741,665.40 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 payable 22,125,109.37 502,347.05
Accounts payable 229,909,541.78 353,186,163.90
Advances from customers 104,448,976.14 105,562,378.66
Contractual liabilities
Payroll payable 298,573,258.40 325,998,210.17
Taxes payable 38,820,588.53 43,556,823.75
Other payables 216,327,314.09 215,946,987.68
Including: Interest payable 7,318,446.67 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 111,331,864.72
Other current liabilities
Total current liabilities 3,139,278,318.43 2,374,904,291.26
Non-current liabilities:
Long-term borrowings 18,961,030.32 170,019,083.89
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Long-term payables
Long-term payroll payable 86,420,799.53 96,958,178.53
Provisions
Deferred income 139,134,413.73 140,183,446.39
Deferred income tax liabilities 27,874,484.06 28,030,096.38
Other non-current liabilities 1,840,000.00 1,840,000.00
Total non-current liabilities 274,230,727.64 437,030,805.19
Total liabilities 3,413,509,046.07 2,811,935,096.45
Owners’ equity:
Share capital 858,121,541.00 922,602,311.00
Capital reserve 256,632,428.28 699,493,647.48
Less: Treasury stock 486,922,944.94
Other comprehensive income 111,894,866.80 61,157,013.37
Surplus reserves 1,022,717,451.40 1,022,717,451.40
Retained earnings 5,102,136,874.98 4,927,500,989.55
Total equity attributable to owners of the Company as the parent 7,351,503,162.46 7,146,548,467.86
Non-controlling interests 583,261,130.42 579,276,247.53
Total owners’ equity 7,934,764,292.88 7,725,824,715.39
Total liabilities and owners’ equity 11,348,273,338.95 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 30 September 2019 31 December 2018
Current assets:
Monetary capital 146,337,238.24 191,305,104.80
Trading financial assets 31,350,000.00
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable 47,978,730.62 91,555,248.34
Accounts receivable 350,747,701.24 316,225,973.28
Accounts receivable financing
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Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Prepayments 108,525,969.43 115,020,260.51
Other receivables 613,846,460.12 395,847,213.77
Including: Interest receivable
Dividends receivable
Inventories 1,432,477,318.67 1,040,433,078.53
Contractual assets
Assets classified as held for sale
Current portion of non-current assets 52,256,130.79
Other current assets 848,975.15 12,671,631.64
Total current assets 2,784,368,524.26 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 2,521,541,019.08 2,165,711,579.69
Investments in other equity instruments
Other non-current financial assets 31,018,515.95
Investment property 31,428,015.67 14,804,592.72
Fixed assets 2,668,052,628.86 2,731,726,695.28
Construction in progress 59,479,055.48 61,182,771.86
Intangible assets 237,399,361.88 242,204,032.54
Goodwill
Long-term prepaid expense
Deferred income tax assets 46,274,665.49 52,758,961.05
Other non-current assets 2,819,450.02 6,047,443.10
Total non-current assets 5,598,012,712.43 5,347,548,076.24
Total assets 8,382,381,236.69 7,510,606,587.11
Current liabilities:
Short-term borrowings 928,629,284.35 622,604,447.52
Trading financial liabilities
Financial liabilities at fair value through profit or loss 4,877,600.00
Derivative financial liabilities
16
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Notes payable 420,035,914.66 120,000.00
Accounts payable 158,548,287.20 120,021,727.66
Advances from customers 60,609,258.23 49,798,551.14
Contractual liabilities
Payroll payable 222,245,639.71 240,090,943.88
Taxes payable 28,318,102.82 30,914,089.32
Other payables 280,561,093.63 303,672,590.72
Including: Interest payable 6,170,923.39 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 2,098,947,580.60 1,372,099,950.24
Non-current liabilities:
Long-term borrowings
Long-term payables
Long-term payroll payable 86,420,799.53 96,958,178.53
Provisions
Deferred income 93,190,373.91 94,390,844.09
Deferred income tax liabilities 16,810,230.43 16,699,530.43
Other non-current liabilities
Total non-current liabilities 196,421,403.87 208,048,553.05
Total liabilities 2,295,368,984.47 1,580,148,503.29
Owners’ equity:
Share capital 858,121,541.00 922,602,311.00
Capital reserves 317,206,232.47 759,836,756.57
Less: Treasury stock 486,922,944.94
Other comprehensive income 520,200.00
Surplus reserves 1,019,608,711.76 1,019,608,711.76
Retained earnings 3,892,075,766.99 3,714,813,049.43
Total owners’ equity 6,087,012,252.22 5,930,458,083.82
Total liabilities and owners’ equity 8,382,381,236.69 7,510,606,587.11
17
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
3. Consolidated Income Statement for Q3
Unit: RMB
Item Q3 2019 Q3 2018
1. Revenue 1,626,165,317.03 1,743,184,011.30
Including: Operating revenue 1,626,165,317.03 1,743,184,011.30
Interest income
2. Costs and expenses 1,409,327,905.19 1,441,771,123.15
Including: Cost of sales 1,134,881,337.85 1,202,063,269.94
Interest expense
Taxes and surcharges 19,277,202.31 25,517,190.09
Selling expense 39,940,915.79 36,889,477.84
Administrative expense 132,610,760.47 117,159,789.88
R&D expense 74,015,794.52 52,932,799.61
Finance costs 8,601,894.25 7,208,595.79
Including: Interest expense 19,779,508.78 16,558,359.20
Interest income 2,710,018.22 5,662,375.52
Add: Other income 3,734,368.66 9,124,879.25
Return on investment (“-” for loss) 6,359,866.40 -23,034,065.03
Including: Share of profit or loss of joint ventures and
-1,712,208.40 -1,055,310.06
associates
Derecognition income of financial assets measured at
amortized cost
Foreign exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 355,467.04 -15,631,140.00
Credit impairment loss (“-” for loss) -486,217.28
Asset impairment loss (“-” for loss) -6,458,082.21 -2,893,902.64
Asset disposal income (“-” for loss) -351,073.80 23,755,540.09
3. Operating profit (“-” for loss) 219,991,740.65 292,734,199.82
Add: Non-operating income 971,245.09 2,673,434.80
Less: Non-operating expense 7,571,310.67 1,628,939.02
4. Profit before tax (“-” for loss) 213,391,675.07 293,778,695.60
Less: Income tax expense 29,571,059.77 44,321,359.81
5. Net profit (“-” for net loss) 183,820,615.30 249,457,335.79
18
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 183,820,615.30 249,457,335.79
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 the
176,453,154.53 209,540,056.51
parent
5.2.2 Net profit attributable to non-controlling interests 7,367,460.77 39,917,279.28
6. Other comprehensive income, net of tax 39,451,542.18 24,566,771.97
Attributable to owners of the Company as the parent 39,451,542.18 24,566,771.97
6.2 Items that will be reclassified to profit or loss 39,451,542.18 24,566,771.97
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
-344,250.00
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
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
39,451,542.18 24,911,021.97
currency-denominated financial statements
6.2.9 Other
Attributable to non-controlling interests
7. Total comprehensive income 223,272,157.48 274,024,107.76
Attributable to owners of the Company as the parent 215,904,696.71 234,106,828.48
Attributable to non-controlling interests 7,367,460.77 39,917,279.28
8. Earnings per share
8.1 Basic earnings per share 0.20 0.23
8.2 Diluted earnings per share 0.20 0.23
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
19
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
4. Income Statement of the Company as the Parent for Q3
Unit: RMB
Item Q3 2019 Q3 2018
1. Operating revenue 1,228,054,030.71 1,311,467,279.35
Less: Cost of sales 915,369,284.69 969,922,821.85
Taxes and surcharges 12,937,532.49 17,215,045.88
Selling expense 22,518,421.20 20,317,829.54
Administrative expense 78,566,335.27 75,809,175.22
R&D expense 52,844,715.85 37,589,240.19
Finance costs 6,719,151.21 4,383,922.13
Including: Interest expense 7,263,684.00 5,775,599.84
Interest income 741,357.06 418,784.42
Add: Other income 4,331,634.30 4,231,549.46
Return on investment (“-” for loss) 23,766,350.02 -1,036,006.41
Including: Share of profit or loss of joint ventures and
-1,712,208.40 -1,055,310.06
associates
Derecognition income of financial assets measured at
amortized cost
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 204,000.00 -11,551,800.00
Credit impairment loss (“-” for loss) -59,892.99
Asset impairment loss (“-” for loss) -2,207,675.19
Asset disposal income (“-” for loss) -287,498.05 -60,714.02
2. Operating profit (“-” for loss) 167,053,183.28 175,604,598.38
Add: Non-operating income 767,005.32 2,629,812.70
Less: Non-operating expense 5,622,462.22 1,220,654.32
3. Profit before tax (“-” for loss) 162,197,726.38 177,013,756.76
Less: Income tax expense 22,824,927.87 24,375,571.27
4. Net profit (“-” for net loss) 139,372,798.51 152,638,185.49
4.1 Net profit from continuing operations (“-” for net loss) 139,372,798.51 152,638,185.49
4.2 Net profit from discontinued operations (“-” for net loss)
5. Other comprehensive income, net of tax -344,250.00
5.2 Items that will be reclassified to profit or loss -344,250.00
5.2.1 Other comprehensive income that will be reclassified to
profit or loss under the equity method
20
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
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 available-for-sale
-344,250.00
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
5.2.8 Differences arising from the translation of foreign
currency-denominated financial statements
5.2.9 Other
6. Total comprehensive income 139,372,798.51 152,293,935.49
7. Earnings per share
7.1 Basic earnings per share 0.16 0.16
7.2 Diluted earnings per share 0.16 0.16
5. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Revenue 4,811,613,661.04 5,023,591,787.12
Including: Operating revenue 4,811,613,661.04 5,023,591,787.12
Interest income
2. Operating costs and expenses 4,146,487,815.45 4,280,415,032.81
Including: Cost of sales 3,345,768,293.38 3,562,899,701.35
Interest income
Taxes and surcharges 62,014,007.08 79,987,597.97
Selling expense 117,777,858.73 103,830,566.40
Administrative expense 323,816,358.21 280,434,300.58
R&D expense 235,954,833.75 215,529,045.41
Finance costs 61,156,464.30 37,733,821.10
Including: Interest expense 67,095,974.54 39,093,671.25
Interest income 7,048,783.32 13,065,868.54
Add: Other income 35,960,594.57 46,267,401.20
Investment income (“-” for loss) 16,777,341.81 -18,388,041.25
21
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Including: Share of profit or loss of joint ventures and
3,370,893.14 -2,785,907.65
associates
Derecognition income of financial assets measured at
amortized cost
Foreign exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 5,638,067.04 -44,112,150.00
Credit impairment loss (“-” for loss) -1,017,168.59
Asset impairment loss (“-” for loss) -8,001,281.59 -5,015,397.48
Asset disposal income (“-” for loss) 162,416.20 23,233,253.44
3. Operating profit (“-” for loss) 714,645,815.03 745,161,820.22
Add: Non-operating income 4,068,269.53 5,680,589.63
Less: Non-operating expense 9,785,667.21 3,623,862.73
4. Profit before tax (“-” for loss) 708,928,417.35 747,218,547.12
Less: Income tax expense 104,410,292.06 107,596,874.38
5. Net profit (“-” for net loss) 604,518,125.29 639,621,672.74
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 604,518,125.29 639,621,672.74
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 the
587,899,371.12 586,896,015.53
parent
5.2.2 Net profit attributable to non-controlling interests 16,618,754.17 52,725,657.21
6. Other comprehensive income, net of tax 51,258,053.43 52,126,425.89
Attributable to owners of the Company as the parent 51,258,053.43 52,126,425.89
6.2 Items that will be reclassified to profit or loss 51,258,053.43 52,126,425.89
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
675,750.00
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
6.2.6 Allowance for credit impairments in investments in
other debt obligations
22
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
6.2.7 Reserve for cash flow hedges
6.2.8 Differences arising from the translation of foreign
51,258,053.43 51,450,675.89
currency-denominated financial statements
6.2.9 Other
Attributable to non-controlling interests
7. Total comprehensive income 655,776,178.72 691,748,098.63
Attributable to owners of the Company as the parent 639,157,424.55 639,022,441.42
Attributable to non-controlling interests 16,618,754.17 52,725,657.21
8. Earnings per share
8.1 Basic earnings per share 0.68 0.64
8.2 Diluted earnings per share 0.68 0.64
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
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Operating revenue 3,716,383,597.08 3,815,256,129.99
Less: Cost of sales 2,763,237,736.46 2,831,327,287.54
Taxes and surcharges 41,622,943.89 57,522,630.63
Selling expense 68,978,522.39 58,633,294.63
Administrative expense 193,912,329.35 175,674,751.06
R&D expense 163,862,447.14 152,490,515.84
Finance costs 19,312,970.11 15,775,202.00
Including: Interest expense 22,211,902.54 11,499,059.62
Interest income 2,448,462.24 3,615,417.12
Add: Other income 24,502,578.64 32,824,295.66
Investment income (“-” for loss) 180,695,074.92 881,396.52
Including: Share of profit or loss of joint ventures and
3,370,893.14 -2,785,907.65
associates
Derecognition income of financial assets measured at
amortized cost
Net gain on exposure hedges (“-” for loss)
23
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Gain on changes in fair value (“-” for loss) 5,486,600.00 -30,399,300.00
Credit impairment loss (“-” for loss) -2,593,516.95
Asset impairment loss (“-” for loss) -1,025,520.28
Asset disposal income (“-” for loss) 306,167.84 -9,093,464.10
2. Operating profit (“-” for loss) 673,853,552.19 517,019,856.09
Add: Non-operating income 3,077,515.36 4,494,842.92
Less: Non-operating expense 6,646,250.89 2,339,681.53
3. Profit before tax (“-” for loss) 670,284,816.66 519,175,017.48
Less: Income tax expense 79,758,613.41 81,334,892.78
4. Net profit (“-” for net loss) 590,526,203.25 437,840,124.70
4.1 Net profit from continuing operations (“-” for net loss) 590,526,203.25 437,840,124.70
4.2 Net profit from discontinued operations (“-” for net loss)
5. Other comprehensive income, net of tax 675,750.00
5.2 Items that will be reclassified to profit or loss 675,750.00
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 available-for-sale
675,750.00
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
5.2.8 Differences arising from the translation of foreign
currency-denominated financial statements
5.2.9 Other
6. Total comprehensive income 590,526,203.25 438,515,874.70
7. Earnings per share
7.1 Basic earnings per share 0.69 0.47
7.2 Diluted earnings per share 0.69 0.47
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
24
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Item Q1~Q3 2019 Q1~Q3 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 4,697,089,850.71 4,919,565,086.62
Tax rebates 161,177,878.89 163,977,565.90
Cash generated from other operating activities 91,028,581.53 72,652,513.56
Subtotal of cash generated from operating activities 4,949,296,311.13 5,156,195,166.08
Payments for commodities and services 2,761,552,075.30 2,430,285,387.35
Cash paid to and for employees 1,266,692,936.92 1,234,503,411.97
Taxes paid 232,669,382.58 195,779,524.72
Cash used in other operating activities 206,578,300.20 172,474,225.29
Subtotal of cash used in operating activities 4,467,492,695.00 4,033,042,549.33
Net cash generated from/used in operating activities 481,803,616.13 1,123,152,616.75
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
2,662,361.66 32,556,953.49
and other long-lived assets
Cash generated from other investing activities 18,383,297.66 76,342,399.31
Subtotal of cash generated from investing activities 53,447,798.06 108,899,352.80
Payments for the acquisition of fixed assets, intangible assets and
611,715,722.57 806,532,720.12
other long-lived assets
Payments for investments 50,000,000.00
Cash used in other investing activities 4,874,724.40 27,629,580.00
Subtotal of cash used in investing activities 666,590,446.97 834,162,300.12
Net cash generated from/used in investing activities -613,142,648.91 -725,262,947.32
3. Cash flows from financing activities:
Capital contributions received 50,000,000.00 500,000.00
Including: Capital contributions by non-controlling interests to
50,000,000.00 500,000.00
subsidiaries
Borrowings obtained 3,108,669,601.05 2,376,163,674.80
Cash generated from other financing activities 110,000,000.00 85,500,000.00
Subtotal of cash generated from financing activities 3,268,669,601.05 2,462,163,674.80
Repayments of borrowings 2,398,405,094.49 1,842,546,176.23
Payments for interest and dividends 545,798,024.25 496,450,783.83
Including: Dividends paid by subsidiaries to non-controlling
62,023,566.38 12,023,566.38
interests
25
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Cash used in other financing activities 112,164,104.03 411,967,875.77
Subtotal of cash used in financing activities 3,056,367,222.77 2,750,964,835.83
Net cash generated from/used in financing activities 212,302,378.28 -288,801,161.03
4. Effect of foreign exchange rate changes on cash and cash
14,142,881.59 17,794,234.31
equivalents
5. Net increase in cash and cash equivalents 95,106,227.09 126,882,742.71
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 630,240,999.99 803,521,955.57
8. Cash Flow Statement of the Company as the Parent Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 3,614,205,464.15 3,785,633,830.30
Tax rebates 117,003,748.15 106,532,179.75
Cash generated from other operating activities 28,034,497.06 43,398,321.95
Subtotal of cash generated from operating activities 3,759,243,709.36 3,935,564,332.00
Payments for commodities and services 2,030,728,889.86 2,128,325,245.47
Cash paid to and for employees 833,777,571.31 892,249,851.42
Taxes paid 132,287,115.34 126,464,943.27
Cash used in other operating activities 103,194,693.82 101,507,637.23
Subtotal of cash used in operating activities 3,099,988,270.33 3,248,547,677.39
Net cash generated from/used in operating activities 659,255,439.03 687,016,654.61
2. Cash flows from investing activities:
Proceeds from disinvestment 30,000,000.00
Return on investment 170,378,572.36 17,976,433.62
Net proceeds from the disposal of fixed assets, intangible assets
2,670,316.61 91,081,938.50
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 102,390,079.19 489,871,987.82
Subtotal of cash generated from investing activities 305,438,968.16 598,930,359.94
Payments for the acquisition of fixed assets, intangible assets and
154,894,842.57 164,450,789.04
other long-lived assets
Payments for investments 402,922,200.00 350,352,500.00
Net payments for the acquisition of subsidiaries and other business
26
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
units
Cash used in other investing activities 247,450,344.40 382,356,069.93
Subtotal of cash used in investing activities 805,267,386.97 897,159,358.97
Net cash generated from/used in investing activities -499,828,418.81 -298,228,999.03
3. Cash flows from financing activities:
Capital contributions received
Borrowings obtained 1,743,028,577.13 1,414,730,254.38
Cash generated from other financing activities 317,313,300.00 241,357,600.00
Subtotal of cash generated from financing activities 2,060,341,877.13 1,656,087,854.38
Repayments of borrowings 1,463,702,550.96 1,189,079,694.80
Payments for interest and dividends 444,520,651.34 458,408,100.12
Cash used in other financing activities 359,508,204.03 411,967,875.77
Subtotal of cash used in financing activities 2,267,731,406.33 2,059,455,670.69
Net cash generated from/used in financing activities -207,389,529.20 -403,367,816.31
4. Effect of foreign exchange rate changes on cash and cash
2,994,642.42 -3,518,381.48
equivalents
5. Net increase in cash and cash equivalents -44,967,866.56 -18,098,542.21
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 146,337,238.24 249,711,287.57
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the Execution of any New Standards
Governing Financial Instruments, Revenue or Leases from 2019
√ 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 60,612,000.00 60,612,000.00
Financial assets at fair value through profit or loss
Derivative financial assets
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
27
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Other receivables 63,012,001.10 63,012,001.10
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale agreements
Inventories 2,093,366,992.30 2,093,366,992.30
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
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:
Investments in debt obligations
Available-for-sale financial assets 85,112,000.00 -85,112,000.00
Investments in other debt obligations
Held-to-maturity investments
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 12,000,000.00 12,000,000.00
Other non-current financial assets 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
R&D expense
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 85,859,151.67 -2,777,777.39
Other non-current assets 43,100,215.87 43,100,215.87
Total non-current assets 7,050,664,003.50 7,005,329,088.31 -45,334,915.19
Total assets 10,537,759,811.84 10,553,036,896.65 15,277,084.81
Current liabilities:
Short-term borrowings 1,325,273,780.05 1,325,273,780.05
Trading financial liabilities
Financial liabilities at fair value through profit or loss 4,877,600.00 -4,877,600.00
28
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Derivative financial liabilities 4,877,600.00 4,877,600.00
Notes payable 502,347.05 502,347.05
Accounts payable 353,186,163.90 353,186,163.90
Advances from customers 105,562,378.66 105,562,378.66
Contractual liabilities
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
Liabilities directly associated with assets classified as
held for sale
Current portion of non-current liabilities
Other current liabilities
Total current liabilities 2,374,904,291.26 2,374,904,291.26
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 170,019,083.89 170,019,083.89
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable 96,958,178.53 96,958,178.53
Provisions
Deferred income 140,183,446.39 140,183,446.39
Deferred income tax liabilities 28,030,096.38 28,030,096.38
Other non-current liabilities 1,840,000.00 1,840,000.00
Total non-current liabilities 437,030,805.19 437,030,805.19
Total liabilities 2,811,935,096.45 2,811,935,096.45
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 60,636,813.37 -520,200.00
Specific reserve
29
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Surplus reserves 1,022,717,451.40 1,022,717,451.40
General reserve
Retained earnings 4,927,500,989.55 4,943,298,274.36 15,797,284.81
Total equity attributable to owners of the Company as the
7,146,548,467.86 7,161,825,552.67 15,277,084.81
parent
Non-controlling interests 579,276,247.53 579,276,247.53
Total owners’ equity 7,725,824,715.39 7,741,101,800.20 15,277,084.81
Total liabilities and owners’ equity 10,537,759,811.84 10,553,036,896.65 15,277,084.81
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,
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 60,612,000.00 60,612,000.00
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable 91,555,248.34 91,555,248.34
Accounts receivable 316,225,973.28 316,225,973.28
Accounts receivable financing
Prepayments 115,020,260.51 115,020,260.51
Other receivables 395,847,213.77 395,847,213.77
30
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Including: Interest receivable
Dividends receivable
Inventories 1,040,433,078.53 1,040,433,078.53
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
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:
Investments in debt obligations
Available-for-sale financial assets 73,112,000.00 -73,112,000.00
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 2,165,711,579.69 2,165,247,925.94 -463,653.75
Investments in other equity instruments
Other non-current financial assets 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
Goodwill
Long-term prepaid expense
Deferred income tax assets 52,758,961.05 49,981,183.66 -2,777,777.39
Other non-current assets 6,047,443.10 6,047,443.10
Total non-current assets 5,347,548,076.24 5,302,213,161.05 -45,334,915.19
Total assets 7,510,606,587.11 7,525,883,671.92 15,277,084.81
Current liabilities:
Short-term borrowings 622,604,447.52 622,604,447.52
Trading financial liabilities
Financial liabilities at fair value through profit or loss 4,877,600.00 -4,877,600.00
Derivative financial liabilities 4,877,600.00 4,877,600.00
Notes payable 120,000.00 120,000.00
Accounts payable 120,021,727.66 120,021,727.66
31
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
Advances from customers 49,798,551.14 49,798,551.14
Contractual liabilities
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
Liabilities directly associated with assets classified as
held for sale
Current portion of non-current liabilities
Other current liabilities
Total current liabilities 1,372,099,950.24 1,372,099,950.24
Non-current liabilities:
Long-term borrowings
Long-term payables
Long-term payroll payable 96,958,178.53 96,958,178.53
Provisions
Deferred income 94,390,844.09 94,390,844.09
Deferred income tax liabilities 16,699,530.43 16,699,530.43
Non-current liabilities
Total non-current liabilities 208,048,553.05 208,048,553.05
Total liabilities 1,580,148,503.29 1,580,148,503.29
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 -520,200.00
Specific reserves
Surplus reserves 1,019,608,711.76 1,019,608,711.76
Retained earnings 3,714,813,049.43 3,730,610,334.24 15,797,284.81
Total owners’ equity 5,930,458,083.82 5,945,735,168.63 15,277,084.81
Total liabilities and owners’ equity 7,510,606,587.11 7,525,883,671.92 15,277,084.81
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,
32
Lu Thai Textile Co., Ltd. Third 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.
2. Retrospective Restatement of Previous Comparative Data due to the Execution of any New Standards
Governing Financial Instruments or Leases from 2019
□ Applicable √ Not applicable
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 October 2019
33
