Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
LU THAI TEXTILE CO., LTD.
THIRD QUARTERLY REPORT 2020
October 2020
1
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
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 that the contents of this Report and its summary are true,
accurate and complete and free of any misrepresentations, misleading statements or material
omissions, and collectively and individually accept legal responsibility for such contents.
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 truthful, 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. Third Quarterly Report 2020
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
30 September 2020 31 December 2019 Change (%)
Total assets (RMB) 11,886,564,733.71 11,885,431,553.08 0.01%
Equity attributable to the listed company’s
7,743,047,836.86 7,697,135,324.92 0.60%
shareholders (RMB)
Q3 2020 YoY change (%) Q1-Q3 2020 YoY change (%)
Operating revenue (RMB) 1,083,514,157.78 -33.37% 3,370,258,238.57 -29.96%
Net profit attributable to the listed
-48,455,060.39 -127.46% 95,664,518.83 -83.73%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional -59,285,564.88 -134.38% 48,820,028.29 -91.11%
gains and losses (RMB)
Net cash generated from/used in operating
219,056,724.96 -39.50% 428,448,990.65 -11.07%
activities (RMB)
Basic earnings per share (RMB/share) -0.06 -130.00% 0.11 -83.82%
Diluted earnings per share (RMB/share) -0.04 -120.00% 0.12 -82.35%
Weighted average return on equity (%) -0.61% -3.05% 1.24% -6.90%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1-Q3 2020 Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) -3,009,110.39
Government grants through profit or loss (exclusive of government grants given in the
Company’s ordinary course of business at fixed quotas or amounts as per the government’s 52,678,767.97
uniform standards)
Gain or loss on fair-value changes on held-for-trading and derivative financial assets and
liabilities & income from disposal of held-for-trading and derivative financial assets and
10,824,073.85
liabilities and other debt investments (exclusive of the effective portion of hedges that arise in
the Company’s ordinary course of business)
Non-operating income and expense other than the above 999,157.33
Less: Income tax effects 10,785,310.28
3
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Non-controlling interests effects (net of tax) 3,863,087.94
Total 46,844,490.54 --
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 of Them as at the End of the
Reporting Period
1. Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preference shareholders with resumed
Number of ordinary shareholders 60,175 0
voting rights (if any)
Top 10 shareholders
Shares in pledge
Shareholdi
Nature of Total shares Restricted or frozen
Name of shareholder ng
shareholder held shares held Share
percentage Status
s
Domestic
Zibo Lucheng Textile Investment Co., Ltd. non-state-owned 16.36% 140,353,583
corporation
Foreign
Tailun (Thailand) Textile Co., Ltd. 13.78% 118,232,400 118,232,400
corporation
State-owned
Central Huijin Assets Management Co., Ltd. 2.00% 20,315,300
corporation
Domestic
China Securities Finance Corporation Limited non-state-owned 2.00% 18,313,391
corporation
Foreign
Hong Kong Securities Clearing Co. Ltd 1.00% 10,492,136
corporation
Domestic
National Social Security Fund Portfolio 413 non-state-owned 1.00% 9,360,051
corporation
Foreign
T.ROWE PRICE INTL DISCOVERY FUND 1.00% 8,403,112
corporation
Zhang Ying Domestic 1.00% 6,112,700
4
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
individual
Domestic
ASSICURAZIONI GENERALI-DIVIDEND 2 non-state-owned 1.00% 5,385,759
corporation
Domestic
Fullgoal China Securities Dividend Index
non-state-owned 1.00% 5,270,243
Strengthen Securities Investment Fund
corporation
Top 10 unrestricted shareholders
Unrestricted ordinary shares Shares by class
Name of shareholder
held Class Shares
RMB-denominate
Zibo Lucheng Textile Investment Co., Ltd. 140,353,583
d ordinary share
RMB-denominate
Central Huijin Assets Management Co., Ltd. 20,315,300
d ordinary share
RMB-denominate
China Securities Finance Corporation Limited 18,313,391
d ordinary share
Domestically
Hong Kong Securities Clearing Co. Ltd 10,492,136 listed foreign
share
RMB-denominate
National Social Security Fund Portfolio 413 9,360,051
d ordinary share
Domestically
T.ROWE PRICE INTL DISCOVERY FUND 8,403,112 listed foreign
share
RMB-denominate
Zhang Ying 6,112,700
d ordinary share
RMB-denominate
ASSICURAZIONI GENERALI-DIVIDEND 2 5,385,759
d ordinary share
Fullgoal China Securities Dividend Index Strengthen Securities RMB-denominate
5,270,243
Investment Fund d ordinary share
Lombarda China China Securities Financial Assets RMB-denominate
5,235,900
Management Plan d ordinary share
Zibo Lucheng Textile Investment Co., Ltd. is the largest
shareholder and the actual controller of the Company. Tailun
Related or acting-in-concert parties among the shareholders (Thailand) Textile Co., Ltd. is the shareholder holding restricted
above B-shares in 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 shareholders engaged in securities margin trading (if Naught
5
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
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 Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
6
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
Item Change Reason for change
Monetary assets 44.07% Reception of funds from issuing convertible corporate bonds in the Reporting
Period
Held-for-trading financial assets 378.74% Increase in structured deposits
Receivables financing 121.17% Increase in bank’s acceptance bills receivable at the end of the Reporting
Period
Other receivables 74.69% Dividends receivable added in the Reporting Period
Other current assets 31.64% Increase in excess VAT paid at the end of the Reporting Period
Long-term equity investments 35.32% Increase in investment (Ningbo Haoying) in the Reporting Period
Other non-current financial -50.20% Decrease in other non-current financial assets due to the external transfer of
assets shares in Remegen in the Reporting Period
Investment property -51.00% Decrease in investment property
Other non-current assets -88.29% Arrival of equipment in the Current Period prepaid at the beginning of the
Reporting Period
Short-term borrowings -52.01% Repayment of short-term borrowings in the Reporting Period
Notes payable -100.00% Payment of beginning bank’s acceptance bills at maturity
Advances from customers -100.00% Adjustment of advances from customers into contract liabilities as required by
the new accounting standards governing revenue
Taxes and levies payable 39.87% Increase in enterprise income tax payable
Other payables -79.29% Decrease in other payables
Contract liabilities 100.00% Adjustment of advances from customers into contract liabilities as required by
the new accounting standards governing revenue
Current portion of non-current -41.16% Payment of current portion of long-term borrowings at maturity
liabilities
Long-term borrowings 571.01% Increase in long-term borrowings
Bonds payable 100.00% Issue of convertible corporate bonds in the Reporting Period
Long-term employee benefits -48.39% Decrease in employee benefits payable over one year
payable
Other non-current liabilities -100.00% Decrease in other non-current liabilities
Other equity instruments 100.00% Increase in equity recognized due to issuing convertible corporate bonds in
the Reporting Period
Item Change Reason for change
Other income 45.73% Increase in government grants
Return on investment 781.65% Investment income from disposal of held-for-trading financial assets in the
7
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Reporting Period
Gain on changes in fair value -2640.00% Recognizing the reversal of disposed held-for-trading financial assets as gain
on changes in fair value in the Reporting Period
Credit impairment loss -241.30% Decrease in expected credit impairment loss due to the decline of the closing
balance of accounts receivable
Asset impairment loss 547.77% Increase in inventory impairment loss in the Reporting Period
Asset disposal income -336.79% Decrease in income from disposal of fixed assets
Non-operating expense -65.64% Decrease of donation expense in the Reporting Period
Income tax expense -72.85% Decrease in income tax payable caused by decline of gross profit in the
Reporting Period
Net cash generated from/used in 172.13% Increase in cash received from borrowings received due to issue of
financing activities convertible corporate bonds in the Reporting Period
Net increase in cash and cash 372.48% Increase in cash and cash equivalents, end of the period, due to issue of
equivalents convertible corporate bonds in the Reporting Period
II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
On 13 August 2020, the Company signed the Transfer Agreement of Equity in Xinjiang Luthai Fengshou Cotton Industry Co., Ltd.
with Mr. Li Jingquan to sell all equity in Xinjiang Luthai Fengshou Cotton Industry Co., Ltd. (hereinafter referred to as “Xinjiang
Luthai”) held by it. Upon the transfer, the Company will no longer hold the equity of Xinjiang Luthai. As of the end of August 2020,
the acquiring party had paid the first and second transfer amount and completed the registration changing procedures. Thus, Xinjiang
Luthai will no longer be incorporated into the consolidated financial statements of the Company since September 2020.
Overview of significant events Disclosure date Announcement index
On 13 August 2020, the Company signed the Transfer Announcement (No.: 2020-058) on
14 August 2020
Agreement of Equity in Xinjiang Luthai Fengshou www.cninfo.com.cn
Cotton Industry Co., Ltd. with Mr. Li Jingquan to sell
all equity in Xinjiang Luthai Fengshou Cotton Industry
Co., Ltd. (hereinafter referred to as “Xinjiang Luthai”)
held by it. Upon the transfer, the Company will no Announcement (No.: 2020-060) on
15 August 2020
longer hold the equity of Xinjiang Luthai. The said www.cninfo.com.cn
issue has been reviewed and approved by the 16th
Meeting of the 9th Board of Directors and related
announcements have been disclosed.
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
8
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Relevant Parties, Failed to Fulfill on Time during the
Reporting Period
√ Applicable □ Not applicable
Date of Term of
Type of Fulfillme
Commitment Promisor Details of commitment commitme commitme
commitment nt
nt making nt
Commitments made in
share reform
Commitments made in
acquisition documents
or shareholding
alteration documents
Commitments made in
time of asset
restructuring
1. Not intervene the Company’s operation
and management beyond the authority
and not occupy the Company’s interests.
2. From the issuance date of this
commitment to the completion of the
implementation of the Company's public
offering of A-share convertible corporate
bonds, if the CSRC makes other new
regulatory provisions on remedial
Dilution of at
measures for returns and the commitment,
sight returns
and the above commitment fails to meet
Controlling on public From 23
Commitments made in the requirements of the CSRC, the
shareholder, offering 23 May May 2019
time of IPO or company / I promise to issue On-going
actual A-share 2019 to 8 April
refinancing supplementary commitment then in
controller convertible 2026
accordance with the latest regulations of
corporate
CSRC. 3. Commitment is made to fulfill
bonds
the Company's relevant remedial
measures for returns and any commitment
made herein by the company / me. If the
company / I violate(s) such commitment
and cause(s) losses to the Company or
investors, the company / I will bear the
compensation responsibility to the
Company or investors in accordance with
the law.
9
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
1. Commitment is made not to transfer
benefits to other units or individuals free
of charge or under unfair conditions, and
no other ways damaging the interests of
the Company will be taken. 2. I will
strictly abide by the budget management
of the Company, and accept the strict
supervision and management of the
Company to avoid waste or excessive
consumption. Any position-related
consumption behaviors of myself will
occur within the scope necessary for the
performance of my duties. 3.
Commitment is made not to use the
Company's assets to engage in investment
and consumption activities unrelated to
the performance of duties. 4.
Commitment is made that the
Dilution of at remuneration system developed by the
sight returns Board of Directors or the Remuneration
Directors
on public Committee is linked to the From 23
and senior
offering implementation of the Company's 23 May May 2019
management On-going
A-share remedial measures for returns. 5. 2019 to 8 April
of the
convertible Commitment is made that the conditions 2026
Company
corporate for exercising the Equity Incentive Plan to
bonds be issued in the future will be linked to
the implementation of the Company's
remedial measures for returns. 6. From
the issuance date of this commitment to
the completion of the implementation of
the Company's public offering of A-share
convertible corporate bonds, if the CSRC
makes other new regulatory provisions on
remedial measures for returns and the
commitment, and the above commitment
fails to meet the requirements of the
CSRC, I promise to issue supplementary
commitment then in accordance with the
latest regulations of CSRC. 7.
Commitment is made to fulfill the
Company's relevant remedial measures
for returns and any commitment made
herein by me. If I violate such
commitment and causes losses to the
10
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Company or investors, I will bear the
compensation responsibility to the
Company or investors in accordance with
the law.
Equity incentive
commitments
Other commitments
made to minority
interests
Executed on time or not Yes
IV Financial Investments
1. Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
Proporti
on of
ending
Rela Rela
Begin investm Actual
tions ted- Impair
Type ning Purchased in Ending ent gain/los
hip part Initial Sold in the ment
Oper of Starting Ending invest the investm amount s in the
with y investment Reporting provisi
ator derivat date date ment Reporting ent in the Reporti
the trans amount Period on (if
ive amoun Period amount Compan ng
Com actio any)
t y’s Period
pany n
ending
net
assets
Forwa
Com rd
Non
merc exchan 21 January 31 March
-rela No 39,398.69 0 39,398.69 39,398.69 0 0 228.05
ial ge 2020 2020
ted
bank settle
ment
Com Non Foreig 19 March 25
No 68,951.65 0 68,951.65 41,951.65 0 27,000 3.31% 598.57
merc -rela n 2020 December
11
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
ial ted exchan 2020
bank ge
option
Forwa
Com rd
Non 17
merc exchan 9 March
-rela No 15,471.23 September 0 15,471.23 15,471.23 0 0 -143.94
ial ge 2020
ted 2020
bank transac
tions
Total 123,821.57 -- -- 0 123,821.57 96,821.57 27,000 3.31% 682.68
Funding source Self-funded
Legal matters involved
N/A
(if applicable)
Disclosure date of the 30 April 2019
announcement on the
Board’s approval of
investments in 30 April 2020
derivative financial
instruments (if any)
Disclosure date of the
announcement on the
general meeting’s
approval of investments
in derivative financial
instruments (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
Risk analysis and
such as market risk, liquidity risk and credit risk, operation risk and risk of laws and regulation.
control measures in
1. Market risk: when the international and domestic economic situations change, the corresponding
respect of derivative
changes in exchange rates and interest rates may have an adverse impact on the financial derivatives
investments held in the
transactions of the Company. Precautionary measures to be taken include: the Company chooses
Reporting Period
risk-controlled financial derivative tools with simple structure and good liquidity to carry out the hedging
(including but not
business, strictly controls the scale of financial derivatives trading by staged operations, and adjusts the
limited to market risk,
strategy according to market changes in a timely manner.
liquidity risk, credit risk,
2. Liquidity risk and credit risk: a credit risk arising from failure of the contractually due Company or
operational risk, legal
counterparty in performing the contract due to liquidity or factors other than liquidity. Precautionary
risk, etc.)
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
12
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
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 26th Meeting of the 8th Board of Directors on 29 April 2019 and at the 13th
Meeting of the 9th Supervisory Committee held on 28 April 2020, and performed relevant information
disclosure responsibilities.
Changes in market
1. As of 30 September 2020, the Company held 6 undue financial derivatives contracts, totaling US$45
prices or fair value of
million, all of which were forward exchange option portfolio.
derivative investments
2. In January-September 2020, the amount of maturing financial derivatives of the Company amounted to
in the Reporting Period
US$139.6616 million which were executed as per the contracts in full and generated gains of RMB6.8268
(fair value analysis
million. Among which, the amount of delivered settlements of forward exchange was US$56.5 million,
should include
which generated gains of RMB2.2805; the amount of delivered foreign exchange options was US$61
measurement method
million, which generated gains of RMB5.9857 million; the amount of delivered foreign exchange
and related assumptions
transactions was US$22.1616 million, which generated gains of RMB-1.4394 million.
and parameters)
Significant changes in
accounting policies and
specific accounting
principles adopted for No significant changes
derivative investments
in the Reporting Period
compared to the last
13
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
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 of independent opinion that it will strengthen the Company’s competitiveness to use derivative transactions with focus on
directors on derivative forward settlement and purchase as an effective tool to avoid foreign exchange risks, to strengthen the
investments and risk relevant internal control and to carry out the loss and risk prevention measures so as to improve the
control 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.
V Progress of Projects Financed with Raised Funds
√ Applicable □ Not applicable
Approved by the CSRC in the Reply on Approving the Public Issue of Convertible Corporate Bonds by Lu
Thai Textile Co., Ltd. (ZJXK[2020]No.299), the Company publicly offered the convertible corporate bonds
with the total par value of RMB1.4 billion on 9 April 2020. The net amount of funds raised through this
public offering after deducting related issue expenses is RMB1,385,460,000. As for projects financed with
the raised funds, apart from the project of supplementing the current capital, both the project of Functional
Fabric Intelligent Ecological Park (I) and the project of High-grade Printing and Dyeing Fabric Production
Line are carried out as planned.
VI 2020 Annual Operating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in the 2020 annual net profit, as well as explanation of
why:
√ Applicable □ Not applicable
Performance forecast: Decrease in net profit
Type of forecast data: Interval data
January-Dece
January-December 2020 Change (%)
mber 2019
Predicted annual net profit
3,500 -- 5,000 98,932.67 Down 96.46% -- 94.95%
(RMB’0,000)
Basic earnings per share
0.04 -- 0.06 1.11 Down 96.40% -- 96.59%
(RMB /share)
During the Reporting Period, influenced by the COVID-19 epidemic in and outside China, orders of
Note the Company decreased and the sales volume of the Company’s products declined, which caused a
remarkable YoY decline in the net profit of the Company for 2020.
VII Significant Contracts Arising from the Company’s Ordinary Course of Business
□ Applicable √ Not applicable
14
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
VIII Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Unit: RMB’0,000
Unrecovered overdue
Type Funding source Amount Undue amount
amount
Trust financial products Self-funded 5,000 0 0
Bank’s wealth
Idle raised funds 30,000 30,000 0
management product
Bank’s wealth
Idle raised funds 8,000 8,000 0
management product
Total 43,000 38,000 0
High-risk wealth management transactions with a significant single amount, or with low security, low liquidity or no principal
protection:
√ Applicable □ Not applicable
Unit: RMB’0,000
Recov Thro
Actual ery of ugh
Type Refere Any
Invest Expect gain/lo the Impair pres
of Way nce plan Summary and
Type Fundi ment ed ss in gain/lo ment cribe
wealth Princi Start End of annual for index to more
Trustee of ng with return the ss in allowa d
manag pal date date payba ized further information (if
trustee source princi (if Report the nce (if proc
ement ck rate of transac any)
pal any) ing Report any) edur
product return tions
Period ing es or
Period not
Payba Announcemen
ck of t No.
No princi Recov 2020-059
Trust 7 9
Avic Trust Fixed-i Self-fu fixed pal ery on dated 14
compa 5,000 March March 8.00% 400 402.19 0 Yes No
Co., Ltd. ncome nded destin with schedu August 2020
ny 2019 2020
ation annual le on
interes www.cninfo.c
t om.cn
Payba
Announcemen
ck of
t No.
25 princi Recov
Agricultur Princip Bank 2020-051
Raised 1 July Septe pal ery on
al Bank of Bank al-prot 10,000 financi 3.50% 81.51 81.51 0 Yes No dated 23 May
fund 2020 mber with schedu
China ected ng 2020 on
2020 interes le
www.cninfo.c
t upon
om.cn
maturi
15
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
ty
Payba
ck of Announcemen
princi t No.
Agricultur Princip 8 Bank pal 2020-051
Raised 1 July
al Bank of Bank al-prot 10,000 Januar financi with 3.50% 183.15 - 0 Yes No dated 23 May
fund 2020
China ected y 2021 ng interes 2020 on
t upon www.cninfo.c
maturi om.cn
ty
Payba
ck of Announcemen
princi t No.
11
China Princip Bank pal 2020-051
Raised 3 July Octob
Constructi Bank al-prot 5,000 financi with 2.05% 28.09 - 0 Yes No dated 23 May
fund 2020 er
on Bank ected ng interes 2020 on
2020
t upon www.cninfo.c
maturi om.cn
ty
Payba
ck of Announcemen
princi t No.
12
Princip 13 Bank pal 2020-051
Qishang Raised Nove
Bank al-prot 5,000 Augus financi with 3.50% 43.63 - 0 Yes No dated 23 May
Bank fund mber
ected t 2020 ng interes 2020 on
2020
t upon www.cninfo.c
maturi om.cn
ty
Payba
ck of Announcemen
princi t No.
28 25
Agricultur Princip Bank pal 2020-051
Raised Septe Dece
al Bank of Bank al-prot 10,000 financi with 3.50% 83.42 - 0 Yes No dated 23 May
fund mber mber
China ected ng interes 2020 on
2020 2020
t upon www.cninfo.c
maturi om.cn
ty
Payba Announcemen
2 2 ck of t No.
Princip Bank
Qishang Self-fu Septe Dece princi 2020-059
Bank al-prot 4,000 financi 3.50% 34.9 - 0 Yes No
Bank nded mber mber pal dated 14
ected ng
2020 2020 with August 2020
interes on
16
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
t upon www.cninfo.c
maturi om.cn
ty
Payba
Announcemen
ck of
t No.
princi
2 2 2020-059
Princip Bank pal
Qishang Self-fu Septe Dece dated 14
Bank al-prot 1,000 financi with 3.50% 8.73 - 0 Yes No
Bank nded mber mber August 2020
ected ng interes
2020 2020 on
t upon
www.cninfo.c
maturi
om.cn
ty
Payba
Announcemen
ck of
t No.
princi
2 2 2020-059
Princip Bank pal
Qishang Self-fu Septe Dece dated 14
Bank al-prot 3,000 financi with 3.50% 26.18 - 0 Yes No
Bank nded mber mber August 2020
ected ng interes
2020 2020 on
t upon
www.cninfo.c
maturi
om.cn
ty
Total 53,000 -- -- -- -- -- -- 889.61 483.7 -- 0 -- -- --
Wealth management transactions with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
IX Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XI Communications with the Investment Community such as Researches, Inquiries and
Interviews Received during the Reporting Period
√ Applicable □ Not applicable
Major discussion
Way of Type of Communicatio Index to main information
Date Place content and
communi communic n party communicated
information
17
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
cation ation party provided
Refer to Announcement on Record
Meeting
Institutional Basic information of of Investor Relations Activities on
8 July 2020 room of the By phone Institution
investors the Company 8 July 2020 dated 8 July 2020 on
Company
www.cninfo.com.cn
Refer to Announcement on Record
Meeting
Institutional Basic information of of Investor Relations Activities on
31 August 2020 room of the By phone Institution
investors the Company 31 August 2020 (I) dated 8 July
Company
2020 on www.cninfo.com.cn
Refer to Announcement on Record
Meeting
Institutional Basic information of of Investor Relations Activities on
31 August 2020 room of the By phone Institution
investors the Company 31 August 2020 (II) dated 8 July
Company
2020 on www.cninfo.com.cn
18
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Lu Thai Textile Co., Ltd.
30 September 2020
Unit: RMB
Item 30 September 2020 31 December 2019
Current assets:
Monetary assets 1,331,653,046.87 924,322,008.17
Held-for-trading financial assets 250,647,835.61 52,356,098.85
Derivative financial assets
Notes receivable 75,592,638.69 104,737,949.91
Accounts receivable 433,522,014.11 515,306,599.62
Receivables financing 59,637,145.03 26,963,818.87
Prepayments 42,289,621.02 56,828,987.59
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 104,368,403.67 59,743,471.84
Including: Interest receivable
Dividends receivable 79,461,739.46
Financial assets purchased under resale agreements
Inventories 2,262,384,920.87 2,421,500,259.30
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 90,554,308.62 68,788,674.10
Total current assets 4,650,649,934.49 4,230,547,868.25
Non-current assets:
Debt investments 130,419,746.70
Other debt investments
19
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Long-term receivables 90,493,460.60 7,058,233.71
Long-term equity investments 139,684,311.24 103,226,300.00
Investments in other equity instruments
Other non-current financial assets 138,519,880.41 278,149,500.00
Investment property 22,489,010.56 45,896,747.87
Fixed assets 5,592,779,775.05 6,012,094,104.67
Construction in progress 505,796,466.32 400,235,070.01
Intangible assets 379,306,465.96 516,479,519.15
Development costs
Goodwill 20,563,803.29 20,563,803.29
Long-term prepaid expense 127,213,599.85 153,031,253.79
Deferred income tax assets 86,441,842.86 99,307,233.72
Other non-current assets 2,206,436.38 18,841,918.62
Total non-current assets 7,235,914,799.22 7,654,883,684.83
Total assets 11,886,564,733.71 11,885,431,553.08
Current liabilities:
Short-term borrowings 1,017,453,702.01 2,120,154,330.61
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 85,219,724.63
Accounts payable 293,221,997.20 305,346,284.94
Advances from customers 108,783,148.03
Contract liabilities 115,751,952.29
Employee benefits payable 271,862,148.70 335,576,560.36
Taxes and levies payable 35,040,457.31 25,051,630.06
Other payables 21,743,792.04 104,982,189.40
Including: Interest payable
Dividends payable 441,113.64 441,113.64
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 59,494,498.63 101,111,297.49
Other current liabilities
Total current liabilities 1,814,568,548.18 3,186,225,165.52
Non-current liabilities:
Insurance contract reserve
20
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Long-term borrowings 284,266,927.78 42,364,019.74
Bonds payable 1,336,061,934.50
Lease liabilities
Long-term payables
Long-term employee benefits payable 54,498,101.31 105,589,249.56
Provisions
Deferred income 176,360,324.31 157,668,211.41
Deferred income tax liabilities 69,176,727.98 92,440,358.41
Other non-current liabilities 1,840,000.00
Total non-current liabilities 1,920,364,015.88 399,901,839.12
Total liabilities 3,734,932,564.06 3,586,127,004.64
Owners’ equity:
Share capital 858,121,541.00 858,121,541.00
Other equity instruments 71,391,357.42
Capital reserves 255,826,253.52 258,046,245.42
Less: Treasury stock
Other comprehensive income 58,515,353.44 91,626,571.75
Specific reserve
Surplus reserves 1,117,267,351.63 1,117,267,351.63
General reserve
Retained earnings 5,381,925,979.85 5,372,073,615.12
Total equity attributable to owners of the Company as the
7,743,047,836.86 7,697,135,324.92
parent
Non-controlling interests 408,584,332.79 602,169,223.52
Total owners’ equity 8,151,632,169.65 8,299,304,548.44
Total liabilities and owners’ equity 11,886,564,733.71 11,885,431,553.08
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 2020 31 December 2019
Current assets:
21
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Monetary assets 816,489,090.04 259,320,863.08
Held-for-trading financial assets 250,647,835.61 52,356,098.85
Derivative financial assets
Notes receivable 41,464,777.41 67,898,885.35
Accounts receivable 370,658,282.87 417,599,518.08
Receivables financing 26,180,834.01 2,675,090.00
Prepayments 14,210,626.46 10,178,452.88
Other receivables 968,906,428.27 838,523,449.52
Including: Interest receivable
Dividends receivable 79,461,739.46
Inventories 1,275,536,403.11 1,280,620,296.02
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 1,715,037.11 5,780,635.28
Total current assets 3,765,809,314.89 2,934,953,289.06
Non-current assets:
Debt investments 100,343,758.07
Other debt investments
Long-term receivables 90,493,460.60
Long-term equity investments 2,560,473,581.92 2,510,868,604.84
Investments in other equity instruments
Other non-current financial assets 126,519,880.41 266,149,500.00
Investment property 30,072,994.51 31,089,260.38
Fixed assets 2,501,965,505.25 2,603,258,003.94
Construction in progress 40,329,804.23 53,443,768.04
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 229,973,618.48 235,277,114.25
Development costs
Goodwill
Long-term prepaid expense
Deferred income tax assets 61,741,349.95 60,974,304.57
22
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Other non-current assets 1,533,682.67
Total non-current assets 5,743,447,636.09 5,761,060,556.02
Total assets 9,509,256,950.98 8,696,013,845.08
Current liabilities:
Short-term borrowings 459,320,094.06 816,301,973.60
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 602,741,973.76
Accounts payable 118,008,619.17 105,588,631.54
Advances from customers 53,418,950.04
Contract liabilities 56,291,876.50
Employee benefits payable 214,047,187.83 242,300,723.41
Taxes and levies payable 26,760,447.50 11,995,830.49
Other payables 17,005,530.95 149,255,207.79
Including: Interest payable
Dividends payable 441,113.64 441,113.64
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 5,013,698.63
Other current liabilities
Total current liabilities 896,447,454.64 1,981,603,290.63
Non-current liabilities:
Long-term borrowings 284,266,927.78
Bonds payable 1,336,061,934.50
Long-term payables
Long-term employee benefits payable 54,498,101.31 105,589,249.56
Provisions
Deferred income 131,899,161.13 112,187,678.66
Deferred income tax liabilities 48,867,677.05 70,445,859.76
Other non-current liabilities
Total non-current liabilities 1,855,593,801.77 288,222,787.98
Total liabilities 2,752,041,256.41 2,269,826,078.61
Owners’ equity:
Share capital 858,121,541.00 858,121,541.00
Other equity instruments 71,391,357.42
23
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Capital reserves 317,206,287.77 317,206,232.47
Less: Treasury stock
Other comprehensive income
Specific reserve
Surplus reserves 1,114,158,611.99 1,114,158,611.99
Retained earnings 4,396,337,896.39 4,136,701,381.01
Total owners’ equity 6,757,215,694.57 6,426,187,766.47
Total liabilities and owners’ equity 9,509,256,950.98 8,696,013,845.08
3. Consolidated Income Statement for Q3
Unit: RMB
Item Q3 2020 Q3 2019
1. Revenues 1,083,514,157.78 1,626,165,317.03
Including: Operating revenue 1,083,514,157.78 1,626,165,317.03
2. Costs and expenses 1,129,513,945.57 1,409,327,905.19
Including: Cost of sales 877,905,169.21 1,134,881,337.85
Interest expense
Taxes and levies 17,759,594.81 19,277,202.31
Selling expense 41,216,125.06 39,940,915.79
Administrative expense 94,719,931.72 132,610,760.47
Development costs 51,993,471.70 74,015,794.52
Finance costs 45,919,653.07 8,601,894.25
Including: Interest expense 17,326,074.90 19,779,508.78
Interest income 7,718,332.35 2,710,018.22
Add: Other income 15,554,862.15 3,734,368.66
Return on investment (“-” for loss) -2,812,732.38 6,359,866.40
Including: Share of profit or loss of joint ventures
37,519.61 -1,712,208.40
and associates
Income from the derecognition of financial
assets at amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 1,489,238.39 355,467.04
Credit impairment loss (“-” for loss) 2,991,021.97 -486,217.28
Asset impairment loss (“-” for loss) -27,216,934.84 -6,458,082.21
24
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Asset disposal income (“-” for loss) -30,717.63 -351,073.80
3. Operating profit (“-” for loss) -56,025,050.13 219,991,740.65
Add: Non-operating income 2,182,713.13 971,245.09
Less: Non-operating expense 978,473.52 7,571,310.67
4. Gross profit (“-” for loss) -54,820,810.52 213,391,675.07
Less: Income tax expense 1,280,740.75 29,571,059.77
5. Net profit (“-” for net loss) -56,101,551.27 183,820,615.30
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net
-56,101,551.27 183,820,615.30
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
-48,455,060.39 176,453,154.53
as the parent
5.2.2 Net profit attributable to non-controlling interests -7,646,490.88 7,367,460.77
6. Other comprehensive income, net of tax -54,406,529.07 39,451,542.18
Attributable to owners of the Company as the parent -54,406,529.07 39,451,542.18
6.1 Items that will not be reclassified to profit or loss
6.1.1 Changes caused by remeasurements on
defined benefit 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 arising from changes
in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to profit or loss -54,406,529.07 39,451,542.18
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 other debt
investments
6.2.3 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for other debt
investments
6.2.5 Reserve for cash flow hedges
25
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
6.2.6 Differences arising from the translation of
-54,406,529.07 39,451,542.18
foreign currency-denominated financial statements
6.2.7 Other
Attributable to non-controlling interests
7. Total comprehensive income -110,508,080.34 223,272,157.48
Attributable to owners of the Company as the parent -102,861,589.46 215,904,696.71
Attributable to non-controlling interests -7,646,490.88 7,367,460.77
8. Earnings per share
8.1 Basic earnings per share -0.06 0.20
8.2 Diluted earnings per share -0.04 0.20
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 for Q3
Unit: RMB
Item Q3 2020 Q3 2019
1. Operating revenue 801,725,709.79 1,228,054,030.71
Less: Cost of sales 646,286,747.41 915,369,284.69
Taxes and levies 12,012,833.81 12,937,532.49
Selling expense 27,098,573.94 22,518,421.20
Administrative expense 56,608,479.12 78,566,335.27
Development costs 35,445,264.04 52,844,715.85
Finance costs 28,042,377.81 6,719,151.21
Including: Interest expense 9,699,777.76 7,263,684.00
Interest income 3,842,967.75 741,357.06
Add: Other income 8,666,958.91 4,331,634.30
Return on investment (“-” for loss) 141,486,032.94 23,766,350.02
Including: Share of profit or loss of joint ventures
37,519.61 -1,712,208.40
and associates
Income from the derecognition of financial
assets at amortized cost (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 647,835.61 204,000.00
26
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Credit impairment loss (“-” for loss) -3,571,870.01 -59,892.99
Asset impairment loss (“-” for loss) -16,789,374.31
Asset disposal income (“-” for loss) 23,581.75 -287,498.05
2. Operating profit (“-” for loss) 126,694,598.55 167,053,183.28
Add: Non-operating income 1,921,199.39 767,005.32
Less: Non-operating expense -64,194.50 5,622,462.22
3. Gross profit (“-” for loss) 128,679,992.44 162,197,726.38
Less: Income tax expense 5,307,313.57 22,824,927.87
4. Net profit (“-” for net loss) 123,372,678.87 139,372,798.51
4.1 Net profit from continuing operations (“-” for net
123,372,678.87 139,372,798.51
loss)
4.2 Net profit from discontinued operations (“-” for net
loss)
5. Other comprehensive income, net of tax
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes caused by remeasurements on defined
benefit 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 arising from changes in
own credit risk
5.1.5 Other
5.2 Items that will be reclassified to profit or loss
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 other debt
investments
5.2.3 Other comprehensive income arising from the
reclassification of financial assets
5.2.4 Credit impairment allowance for other debt
investments
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the translation of
foreign currency-denominated financial statements
5.2.7 Other
6. Total comprehensive income 123,372,678.87 139,372,798.51
27
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
7. Earnings per share
7.1 Basic earnings per share 0.14 0.16
7.2 Diluted earnings per share 0.15 0.16
5. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2020 Q1~Q3 2019
1. Revenues 3,370,258,238.57 4,811,613,661.04
Including: Operating revenue 3,370,258,238.57 4,811,613,661.04
2. Costs and expenses 3,257,315,070.05 4,146,487,815.45
Including: Cost of sales 2,561,657,500.48 3,345,768,293.38
Interest expense
Taxes and levies 53,525,850.22 62,014,007.08
Selling expense 122,956,030.65 117,777,858.73
Administrative expense 272,613,531.19 323,816,358.21
Development costs 175,435,194.76 235,954,833.75
Finance costs 71,126,962.75 61,156,464.30
Including: Interest expense 55,985,780.35 67,095,974.54
Interest income 21,224,691.86 7,048,783.32
Add: Other income 52,405,567.97 35,960,594.57
Return on investment (“-” for loss) 147,917,281.51 16,777,341.81
Including: Share of profit or loss of joint ventures
-3,542,003.74 3,370,893.14
and associates
Income from the derecognition of financial
assets at amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -143,206,715.77 5,638,067.04
Credit impairment loss (“-” for loss) 1,437,305.49 -1,017,168.59
Asset impairment loss (“-” for loss) -51,830,014.22 -8,001,281.59
Asset disposal income (“-” for loss) -384,580.81 162,416.20
3. Operating profit (“-” for loss) 119,282,012.69 714,645,815.03
Add: Non-operating income 4,308,532.54 4,068,269.53
Less: Non-operating expense 3,362,400.42 9,785,667.21
4. Gross profit (“-” for loss) 120,228,144.81 708,928,417.35
28
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Less: Income tax expense 28,348,574.44 104,410,292.06
5. Net profit (“-” for net loss) 91,879,570.37 604,518,125.29
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net
91,879,570.37 604,518,125.29
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
95,664,518.83 587,899,371.12
as the parent
5.2.1 Net profit attributable to non-controlling interests -3,784,948.46 16,618,754.17
6. Other comprehensive income, net of tax -33,111,218.31 51,258,053.43
Attributable to owners of the Company as the parent -33,111,218.31 51,258,053.43
6.1 Items that will not be reclassified to profit or loss
6.1.1 Changes caused by remeasurements on
defined benefit 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 arising from changes
in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to profit or loss -33,111,218.31 51,258,053.43
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 other debt
investments
6.2.3 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for other debt
investments
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of
-33,111,218.31 51,258,053.43
foreign currency-denominated financial statements
6.2.7 Other
Attributable to non-controlling interests
7. Total comprehensive income 58,768,352.06 655,776,178.72
Attributable to owners of the Company as the parent 62,553,300.52 639,157,424.55
29
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Attributable to non-controlling interests -3,784,948.46 16,618,754.17
8. Earnings per share
8.1 Basic earnings per share 0.11 0.68
8.2 Diluted earnings per share 0.12 0.68
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 2020 Q1~Q3 2019
1. Operating revenue 2,326,212,038.77 3,716,383,597.08
Less: Cost of sales 1,827,651,304.62 2,763,237,736.46
Taxes and levies 35,743,175.75 41,622,943.89
Selling expense 74,086,757.85 68,978,522.39
Administrative expense 167,947,098.96 193,912,329.35
Development costs 118,044,553.48 163,862,447.14
Finance costs 33,706,626.23 19,312,970.11
Including: Interest expense 20,120,614.69 22,211,902.54
Interest income 7,722,719.33 2,448,462.24
Add: Other income 35,517,378.65 24,502,578.64
Return on investment (“-” for loss) 438,846,096.83 180,695,074.92
Including: Share of profit or loss of joint ventures
-3,542,003.74 3,370,893.14
and associates
Income from the derecognition of financial
assets at amortized cost (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -143,206,715.77 5,486,600.00
Credit impairment loss (“-” for loss) -2,461,857.97 -2,593,516.95
Asset impairment loss (“-” for loss) -36,890,295.48
Asset disposal income (“-” for loss) -390,704.12 306,167.84
2. Operating profit (“-” for loss) 360,446,424.02 673,853,552.19
Add: Non-operating income 3,903,923.74 3,077,515.36
30
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Less: Non-operating expense 1,441,083.16 6,646,250.89
3. Gross profit (“-” for loss) 362,909,264.60 670,284,816.66
Less: Income tax expense 17,460,595.12 79,758,613.41
4. Net profit (“-” for net loss) 345,448,669.48 590,526,203.25
4.1 Net profit from continuing operations (“-” for net
345,448,669.48 590,526,203.25
loss)
4.2 Net profit from discontinued operations (“-” for net
loss)
5. Other comprehensive income, net of tax
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes caused by remeasurements on defined
benefit 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 arising from changes in
own credit risk
5.1.5 Other
5.2 Items that will be reclassified to profit or loss
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 other debt
investments
5.2.3 Other comprehensive income arising from the
reclassification of financial assets
5.2.4 Credit impairment allowance for other debt
investments
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the translation of
foreign currency-denominated financial statements
5.2.7 Other
6. Total comprehensive income 345,448,669.48 590,526,203.25
7. Earnings per share
7.1 Basic earnings per share 0.40 0.69
7.2 Diluted earnings per share 0.41 0.69
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
31
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Item Q1~Q3 2020 Q1~Q3 2019
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 3,384,654,490.80 4,697,089,850.71
Tax and levy rebates 97,256,293.02 161,177,878.89
Cash generated from other operating activities 109,313,561.84 91,028,581.53
Subtotal of cash generated from operating activities 3,591,224,345.66 4,949,296,311.13
Payments for commodities and services 1,739,170,271.74 2,761,552,075.30
Cash paid to and for employees 1,136,433,434.17 1,266,692,936.92
Taxes and levies paid 130,625,192.23 232,669,382.58
Cash used in other operating activities 156,546,456.87 206,578,300.20
Subtotal of cash used in operating activities 3,162,775,355.01 4,467,492,695.00
Net cash generated from/used in operating activities 428,448,990.65 481,803,616.13
2. Cash flows from investing activities:
Proceeds from disinvestment 160,131,152.08 30,000,000.00
Return on investment 146,015,342.75 2,402,138.74
Net proceeds from the disposal of fixed assets, intangible assets
2,525,374.62 2,662,361.66
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
76,625,459.68
units
Cash generated from other investing activities 58,738,249.12 18,383,297.66
Subtotal of cash generated from investing activities 444,035,578.25 53,447,798.06
Payments for the acquisition of fixed assets, intangible assets and
439,532,093.09 611,715,722.57
other long-lived assets
Payments for investments 402,215,000.00 50,000,000.00
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 131,357,405.75 4,874,724.40
Subtotal of cash used in investing activities 973,104,498.84 666,590,446.97
Net cash generated from/used in investing activities -529,068,920.59 -613,142,648.91
3. Cash flows from financing activities:
Capital contributions received 50,000,000.00 50,000,000.00
Including: Capital contributions by non-controlling interests to
50,000,000.00 50,000,000.00
subsidiaries
Borrowings received 2,791,995,350.02 3,108,669,601.05
Cash generated from other financing activities 174,000,000.00 110,000,000.00
32
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Subtotal of cash generated from financing activities 3,015,995,350.02 3,268,669,601.05
Repayment of borrowings 2,092,750,426.79 2,398,405,094.49
Interest and dividends paid 185,516,027.59 545,798,024.25
Including: Dividends paid by subsidiaries to non-controlling
62,023,566.38 62,023,566.38
interests
Cash used in other financing activities 160,000,000.00 112,164,104.03
Subtotal of cash used in financing activities 2,438,266,454.38 3,056,367,222.77
Net cash generated from/used in financing activities 577,728,895.64 212,302,378.28
4. Effect of foreign exchange rates changes on cash and cash
-27,748,594.23 14,142,881.59
equivalents
5. Net increase in cash and cash equivalents 449,360,371.47 95,106,227.09
Add: Cash and cash equivalents, beginning of the period 878,559,018.92 535,134,772.90
6. Cash and cash equivalents, end of the period 1,327,919,390.39 630,240,999.99
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2020 Q1~Q3 2019
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 2,280,927,202.14 3,614,205,464.15
Tax and levy rebates 36,161,757.59 117,003,748.15
Cash generated from other operating activities 65,020,438.86 28,034,497.06
Subtotal of cash generated from operating activities 2,382,109,398.59 3,759,243,709.36
Payments for commodities and services 1,869,878,907.48 2,030,728,889.86
Cash paid to and for employees 697,877,660.03 833,777,571.31
Taxes and levies paid 65,611,861.50 132,287,115.34
Cash used in other operating activities 113,577,947.13 103,194,693.82
Subtotal of cash used in operating activities 2,746,946,376.14 3,099,988,270.33
Net cash generated from/used in operating activities -364,836,977.55 659,255,439.03
2. Cash flows from investing activities:
Proceeds from disinvestment 260,131,152.08 30,000,000.00
Return on investment 313,991,776.37 170,378,572.36
Net proceeds from the disposal of fixed assets, intangible assets
12,615,646.54 2,670,316.61
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 932,755,621.58 102,390,079.19
33
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Subtotal of cash generated from investing activities 1,519,494,196.57 305,438,968.16
Payments for the acquisition of fixed assets, intangible assets and
48,716,259.48 154,894,842.57
other long-lived assets
Payments for investments 562,665,000.00 402,922,200.00
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 1,078,093,516.63 247,450,344.40
Subtotal of cash used in investing activities 1,689,474,776.11 805,267,386.97
Net cash generated from/used in investing activities -169,980,579.54 -499,828,418.81
3. Cash flows from financing activities:
Capital contributions received
Borrowings received 1,871,861,148.38 1,743,028,577.13
Cash generated from other financing activities 58,280,000.00 317,313,300.00
Subtotal of cash generated from financing activities 1,930,141,148.38 2,060,341,877.13
Repayment of borrowings 537,012,601.56 1,463,702,550.96
Interest and dividends paid 101,422,438.30 444,520,651.34
Cash used in other financing activities 191,640,100.00 359,508,204.03
Subtotal of cash used in financing activities 830,075,139.86 2,267,731,406.33
Net cash generated from/used in financing activities 1,100,066,008.52 -207,389,529.20
4. Effect of foreign exchange rates changes on cash and cash
-8,206,037.63 2,994,642.42
equivalents
5. Net increase in cash and cash equivalents 557,042,413.80 -44,967,866.56
Add: Cash and cash equivalents, beginning of the period 259,320,863.08 191,305,104.80
6. Cash and cash equivalents, end of the period 816,363,276.88 146,337,238.24
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2020) of the New
Accounting Standards Governing Revenue and Leases
√ Applicable □ Not applicable
Whether the Company needs to adjust the items in the balance sheet at the beginning of the year
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
Item 31 December 2019 1 January 2020 Adjusted
Current assets:
34
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Monetary assets 924,322,008.17 924,322,008.17
Held-for-trading financial assets 52,356,098.85 52,356,098.85
Derivative financial assets
Notes receivable 104,737,949.91 104,737,949.91
Accounts receivable 515,306,599.62 515,306,599.62
Receivables financing 26,963,818.87 26,963,818.87
Prepayments 56,828,987.59 56,828,987.59
Other receivables 59,743,471.84 59,743,471.84
Including: Interest receivable
Dividends receivable
Inventories 2,421,500,259.30 2,421,500,259.30
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 68,788,674.10 68,788,674.10
Total current assets 4,230,547,868.25 4,230,547,868.25
Non-current assets:
Long-term receivables 7,058,233.71 7,058,233.71
Long-term equity investments 103,226,300.00 103,226,300.00
Investments in other equity instruments
Other non-current financial assets 278,149,500.00 278,149,500.00
Investment property 45,896,747.87 45,896,747.87
Fixed assets 6,012,094,104.67 6,012,094,104.67
Construction in progress 400,235,070.01 400,235,070.01
Intangible assets 516,479,519.15 516,479,519.15
Development costs
Goodwill 20,563,803.29 20,563,803.29
Long-term prepaid expense 153,031,253.79 153,031,253.79
Deferred income tax assets 99,307,233.72 99,307,233.72
Other non-current assets 18,841,918.62 18,841,918.62
Total non-current assets 7,654,883,684.83 7,654,883,684.83
Total assets 11,885,431,553.08 11,885,431,553.08
Current liabilities:
Short-term borrowings 2,120,154,330.61 2,120,154,330.61
35
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 85,219,724.63 85,219,724.63
Accounts payable 305,346,284.94 305,346,284.94
Advances from customers 108,783,148.03 -108,783,148.03
Contract liabilities 108,783,148.03 108,783,148.03
Employee benefits payable 335,576,560.36 335,576,560.36
Taxes and levies payable 25,051,630.06 25,051,630.06
Other payables 104,982,189.40 104,982,189.40
Including: Interest payable
Dividends payable 441,113.64 441,113.64
Current portion of non-current
101,111,297.49 101,111,297.49
liabilities
Other current liabilities
Total current liabilities 3,186,225,165.52 3,186,225,165.52
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 42,364,019.74 42,364,019.74
Bonds payable
Long-term payables
Long-term employee benefits payable 105,589,249.56 105,589,249.56
Provisions
Deferred income 157,668,211.41 157,668,211.41
Deferred income tax liabilities 92,440,358.41 92,440,358.41
Other non-current liabilities 1,840,000.00 1,840,000.00
Total non-current liabilities 399,901,839.12 399,901,839.12
Total liabilities 3,586,127,004.64 3,586,127,004.64
Owners’ equity:
Share capital 858,121,541.00 858,121,541.00
Other equity instruments
Capital reserves 258,046,245.42 258,046,245.42
Less: Treasury stock
Other comprehensive income 91,626,571.75 91,626,571.75
Specific reserve
Surplus reserves 1,117,267,351.63 1,117,267,351.63
36
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
General reserve
Retained earnings 5,372,073,615.12 5,372,073,615.12
Total equity attributable to owners of the
7,697,135,324.92 7,697,135,324.92
Company as the parent
Non-controlling interests 602,169,223.52 602,169,223.52
Total owners’ equity 8,299,304,548.44 8,299,304,548.44
Total liabilities and owners’ equity 11,885,431,553.08 11,885,431,553.08
Note for adjustment
None
Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2019 1 January 2020 Adjusted
Current assets:
Monetary assets 259,320,863.08 259,320,863.08
Held-for-trading financial assets 52,356,098.85 52,356,098.85
Derivative financial assets
Notes receivable 67,898,885.35 67,898,885.35
Accounts receivable 417,599,518.08 417,599,518.08
Receivables financing 2,675,090.00 2,675,090.00
Prepayments 10,178,452.88 10,178,452.88
Other receivables 838,523,449.52 838,523,449.52
Including: Interest receivable
Dividends receivable
Inventories 1,280,620,296.02 1,280,620,296.02
Assets held for sale
Current portion of non-current assets
Other current assets 5,780,635.28 5,780,635.28
Total current assets 2,934,953,289.06 2,934,953,289.06
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 2,510,868,604.84 2,510,868,604.84
Investments in other equity instruments
Other non-current financial assets 266,149,500.00 266,149,500.00
37
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Investment property 31,089,260.38 31,089,260.38
Fixed assets 2,603,258,003.94 2,603,258,003.94
Construction in progress 53,443,768.04 53,443,768.04
Intangible assets 235,277,114.25 235,277,114.25
Development costs
Goodwill
Long-term prepaid expense
Deferred income tax assets 60,974,304.57 60,974,304.57
Other non-current assets
Total non-current assets 5,761,060,556.02 5,761,060,556.02
Total assets 8,696,013,845.08 8,696,013,845.08
Current liabilities:
Short-term borrowings 816,301,973.60 816,301,973.60
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 602,741,973.76 602,741,973.76
Accounts payable 105,588,631.54 105,588,631.54
Advances from customers 53,418,950.04 -53,418,950.04
Contract liabilities 53,418,950.04 53,418,950.04
Employee benefits payable 242,300,723.41 242,300,723.41
Taxes and levies payable 11,995,830.49 11,995,830.49
Other payables 149,255,207.79 149,255,207.79
Including: Interest payable
Dividends payable 441,113.64 441,113.64
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 1,981,603,290.63 1,981,603,290.63
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Long-term employee benefits payable 105,589,249.56 105,589,249.56
38
Lu Thai Textile Co., Ltd. Third Quarterly Report 2020
Provisions
Deferred income 112,187,678.66 112,187,678.66
Deferred income tax liabilities 70,445,859.76 70,445,859.76
Other non-current liabilities
Total non-current liabilities 288,222,787.98 288,222,787.98
Total liabilities 2,269,826,078.61 2,269,826,078.61
Owners’ equity:
Share capital 858,121,541.00 858,121,541.00
Other equity instruments
Capital reserves 317,206,232.47 317,206,232.47
Less: Treasury stock
Other comprehensive income
Specific reserve
Surplus reserves 1,114,158,611.99 1,114,158,611.99
Retained earnings 4,136,701,381.01 4,136,701,381.01
Total owners’ equity 6,426,187,766.47 6,426,187,766.47
Total liabilities and owners’ equity 8,696,013,845.08 8,696,013,845.08
Note for adjustment
None
2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First Execution in 2020
of the New Accounting Standards Governing Revenue and Leases
√Applicable □ Not applicable
None
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.
31 October 2020
39