Report for the First Quarter of 2011 of Lu Thai Textile Co., Ltd.
Lu Thai Textile Co., Ltd.
Report for the First Quarter of 2011
§1 Important Notes
1.1 The Board of Directors, the Supervisory Committee as well as directors, supervisors and senior
executives of Lu Thai Textile Co., Ltd. (hereinafter referred to as “the Company”) guarantee that
this report does not contain any false information, misleading statement or material omission and
will take individual and/or joint liabilities for the factuality, accuracy and completeness of this
report.
1.2 Financial statements for the first quarter of 2011 have not been audited by an accounting firm.
1.3 Mr. Liu Shizhen, the company principal, and Ms. Zhang Hongmei, the principal of the
accounting work and the person-in-charge of the accounting department (the accounting principal),
hereby confirm that the financial statements enclosed in the quarterly report is true and complete.
[English translation for reference only. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.]
§2 Company Profile
2.1 Main accounting data and financial indices
Unit: RMB Yuan
31 Mar. 2011 31 Dec. 2010 Increase/decrease (%)
Total assets (Yuan) 7,391,506,325.99 7,015,883,263.33 5.35%
Owners’ equity attributable to shareholders of
4,611,681,168.54 4,404,133,413.47 4.71%
the Company (Yuan)
Share capital (share) 994,864,800.00 994,864,800.00 0.00%
Net assets per share attributable to
4.64 4.43 4.74%
shareholders of the Company (Yuan/share)
Jan.-Mar. 2011 Jan.-Mar. 2010 Increase/decrease (%)
Gross revenue (Yuan) 1,412,599,864.78 1,007,921,744.76 40.15%
Net profit attributable to shareholders of the
207,753,038.55 148,214,182.13 40.17%
Company (Yuan)
Net cash flows from operating activities
59,816,094.26 99,390,411.92 -39.82%
(Yuan)
Net cash flows per share from operating
0.06 0.10 -40.00%
activities (Yuan/share)
Basic EPS (Yuan/share) 0.21 0.15 40.00%
Diluted EPS (Yuan/share) 0.21 0.15 40.00%
Weighted average ROA (%) 4.61% 3.71% 0.90%
Weighted average ROA after deducting
4.57% 3.63% 0.94%
non-recurring gains and losses (%)
Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Items of non-recurring gains and losses Amount Notes (if applicable)
Gains and losses from disposal of non-current assets 134,907.02
Government subsidies recorded into current gains and losses,
excluding those related closely to the routine business of the
6,584,716.66
Company and continuously enjoyed by the Company at fixed
amounts or ratios according to state policies and regulations
Gains/losses from fair value changes of transactional financial 1,930,093.87
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Report for the First Quarter of 2011 of Lu Thai Textile Co., Ltd.
assets and liabilities held by the Company, and investment gains
from disposal of transactional financial assets and liabilities and
financial assets available for sale, excluding effective hedging
business related to the Company’s common operations
Other non-operating incomes and expenses 454,537.93
Income tax effects -4,884,454.31
Minority interests effects -2,265,617.74
Total 1,954,183.43 -
2.2 Total number of shareholders and shares held by the top ten shareholders not subject to trading
moratorium at the end of the reporting period
Unit: share
Total number of shareholders at the end of
120,927
the reporting period
Shares held by the top ten shareholders not subject to trading moratorium
Shares not subject to trading
Full name of shareholder Type of share
moratorium held at the period-end
Zibo Lucheng Textile Investment Co., Ltd. 24,956,700 RMB ordinary shares
DBS VICKERS (HONG KONG) LTD A/C
40,978,642 Domestically listed foreign shares
CLIENTS
Bosera Emerging Growth Stock Fund 12,999,871 RMB ordinary shares
Bosera Tertiary Industry Growth Stock Fund 4,999,976 RMB ordinary shares
China Income Stock Fund 4,294,938 RMB ordinary shares
Bank of Communications Schroder Selected
3,654,952 RMB ordinary shares
Stock Fund
GUOTAI JUNAN
3,496,432 Domestically listed foreign shares
SECURITIES(HONGKONG) LIMITED
Fullgoal CSI 300 Strengthen Fund 3,477,752 RMB ordinary shares
CITIC Trust Co., Ltd.—Management
3,230,000 RMB ordinary shares
Component Phase 1
TOYO SECURITIES ASIA LIMITED-A/C
3,199,861 Domestically listed foreign shares
CLIENT.
§3 Significant Events
3.1 Significant changes in main accounting statement items and financial indicators as well as
reasons for these changes
√Applicable □Non-applicable
1. Transactional financial assets at the end of the reporting period were down 40.49% as compared
to the beginning of the reporting period, which was mainly due to fair value changes of
transactional financial assets.
2. Prepayments at the end of the reporting period were down 48.31% as compared to the beginning
of the reporting period, which was mainly because the Company prepaid for cotton purchases in
previous periods and the transactions were settled in the reporting period.
3. Other receivables at the end of the reporting period were down 37.57% as compared to the
beginning of the reporting period, which was mainly due to recovery of some other receivables.
4. Engineering materials at the end of the reporting period were up 1472.30% (RMB 17,140,200) as
compared to the beginning of the reporting period, which was mainly because more equipments
were purchased in the reporting period.
5. Short-term borrowings at the end of the reporting period were up 68.79% as compared to the
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Report for the First Quarter of 2011 of Lu Thai Textile Co., Ltd.
beginning of the reporting period, which was mainly due to increase of short-term borrowings in the
reporting period.
6. Transactional financial liabilities at the end of the reporting period were down 31.04% as
compared to the beginning of the reporting period, which was mainly due to fair value changes of
transactional financial liabilities at the end of the reporting period.
7. Notes payable at the end of the reporting period were down 67.13% as compared to the beginning
of the reporting period, which was mainly because some notes payable were settled upon maturity.
8. Accounts payable at the end of the reporting period were down 58.50% as compared to the
beginning of the reporting period, which was mainly because the payable for seed cotton in
previous periods was settled in the reporting period.
9. Accounts received in advance at the end of the reporting period were down 45.73% as compared
to the beginning of the reporting period, which was mainly because the accounts received in
advance for ginned cotton in previous periods were settled in the reporting period.
10. Taxes and fares payable at the end of the reporting period were up 51.15% as compared to the
beginning of the reporting period, which was mainly because overpaid VAT at the end of the
reporting period decreased.
11. Operating income was up 40.15% from a year earlier, which was mainly due to increase of the
sales volume and selling prices.
12. Operating cost was up 44.59% from a year earlier, which was mainly due to increase of the sales
volume and production costs.
13. Business taxes and surcharges were up 959.86% (RMB 4,383,100) from a year earlier, which
was mainly due to increase of the city maintenance tax and the educational surcharges.
14. Asset impairment loss was down 52.91% from a year earlier, which was mainly because
bad-debt provisions for accounts receivable decreased as a result of changes in the balance of
accounts receivable.
15. Gains on fair value changes were down 241.57% from a year earlier, which was mainly because
some transactional financial assets were disposed upon maturity and the formerly recognized fair
value change gains on the said assets were carried over.
16. Investment gains were up 193.66% from a year earlier, which was mainly due to increase of
gains on transactional financial assets.
3.2 Progress of significant events as well as their influence and solutions
3.2.1 Non-standard audit opinion
□Applicable √Inapplicable
3.2.2 The Company provides funds for the controlling shareholder or its related parties or provides
external guarantees in violation of the prescribed procedure
□Applicable √Inapplicable
3.2.3 Significant contracts signed and executed concerning routine operation
□Applicable √Inapplicable
3.2.4 Other
□Applicable √Inapplicable
3.3 Commitments made by the Company, its shareholders and actual controller
Commitments made by the Company, its directors, supervisors, senior executives, shareholders
holding over 5% of the Company’s shares, actual controller and other related parties in the reporting
period, or such commitments carried down into the reporting period
√Applicable □Inapplicable
Commitment Commitment maker Contents of the commitment Execution
Zibo Lucheng will not reduce its shareholding within 60 Zibo Lucheng
months after share merger reform and, within 24 months Textile Investment
Commitments made Zibo Lucheng Textile
after that, the price of selling holding shares shall not be Co., Ltd. has
in share reforms Investment Co., Ltd
lower than RMB 15 per share (if the share capital changes, fulfilled its
ex-rights will be conducted); it proposed and voted for a cash commitment to
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Report for the First Quarter of 2011 of Lu Thai Textile Co., Ltd.
distribution not lower than 50% of the profit available for increase its
distribution in the year at the 2006 Shareholders’ General shareholding in the
Meeting and 2007 Shareholders’ General Meeting; it will Company with
increase the LUTHAI A shares held by it through trading at dividends received
the secondary market with the dividends received in 2005 from the Company
and 2006, and the increase of the LUTHAI A shares held in 2005 and 2006.
shall be accomplished within 12 months after the dividend is And the total profit
transferred to its account. In 2008, the total profit shall for 2008 increased
increase by not less than 30% compared with that in 2005. 58.06% as
compared to 2005.
Commitments made
in acquisition reports
N/A N/A N/A
or reports on equity
changes
Commitments made
in significant asset N/A N/A N/A
reorganization
The Production
Project for
150-thousand
Ingot Top-grade
Fine Combed
Yarns, the
50-thousand Ingot
Two-for-one
Twisting
Production Line
Project, the Project
for Supplementing
Working Capital
and the Project of
Commitments made
Lu Thai Textile Co., Ltd. Investment projects with raised funds 10-million-meter
in share issuance
Top-grade Fabrics
for Women’s Wear
among the raised
capital investment
projects were all
completed. And
the Project for
Marketing
Network and
Brand
Development is in
implementation as
scheduled by the
Company.
Other commitments
(including N/A N/A N/A
supplementary ones)
3.4 Warnings of possible loss or large-margin year-on-year change of the accumulative net profit
made during the period from the beginning of the year to the end of the next reporting period
according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events
3.5.1 Securities investments
□Applicable √Inapplicable
3.5.2 Researches, interviews and visits received in the reporting period
Way of Main discussion and information
Time Place Visitor
reception provided by the Company
Room for Visitors Researchers from SWS Basic information about the
31 Mar. 2011 Field research
of the Company Research Company
Room for Visitors Researchers from Harvest Basic information about the
31 Mar. 2011 Field research
of the Company Fund Company
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Report for the First Quarter of 2011 of Lu Thai Textile Co., Ltd.
3.6 Derivative investments
√Applicable □Inapplicable
The Company conducted derivatives products transaction in order for hedging. And the
forward settlement hedging was operated by installments, with the relevant amount not
more than the planned derivatives products transactions. And all derivatives products
transaction was zero-deposit. Meanwhile, the Company had a complete risk control
system for sufficient analysis and prevention of possible risks such as risk of laws and
regulations, credit risk, operation risk and market risk.
1. Risk of laws and regulations
When conducting hedging business, the Company must abide by relevant laws,
regulations and rules of the stock exchange, and the rights and obligations between the
Company and the bank must be specified.
Precautionary measures: The Company carefully studied and mastered relevant laws,
regulations and market rules, formulated internal control rules for the forward settlement
hedging business, strengthened supervision, and strictly abided by relevant laws,
regulations and the Company’s internal management rules.
2. Credit risk and liquidity risk
Derivatives products transaction developed by the Company was carried out on the basis
of contract of forward settlement of exchange signed between the Company and bank, the
delivery on schedule or extension is recognized based on one of the contract price and
Analysis on risks and control exchange tendency after such contract of forward settlement of exchange falls due, no
measures of derivative default risk exists in the Company so as to ensure delivery on schedule or extension.
products held in the reporting Precaution measure: The Company conducted derivative investment transactions
period (including but not according to the relevant approval procedure, which was in line with relevant laws,
limited to market risk, regulations, the Company’s Articles of Association, the Management Rules for Derivative
liquidity risk, credit risk, Investment of Lu Thai Textile Co., Ltd. and the Plan for Derivative Transactions in 2011
operation risk, law risk, etc.) approved at the First Special Session of the Shareholders’ General Meeting for 2011.
3. Operation risk
Faulty internal progress, employees, as well as system and external matters resulted in risk
as well in the course of hedging, including employee risk, process risk, system risk and
external risk.
Precaution measure: The Company has formulated and improved the organizational
structure, business operation flow chart, approval flow chart and other internal control
rules for derivative transactions, which are executed effectively. The operation risk thus
can be reduced effectively.
4. Market risk
In the operation of hedging of forward settlement and surrender exchange, if the RMB is
devalued by a large margin on the basis of the current situation before the contract is due,
so then, the larger losses shall incur in the contract on forward settlement of exchange
signed by the Company.
Risk analysis and precaution measure: at present, in face of the appreciation pressure on
Renminbi, there was no risk on large devaluation of the RMB before the contract is due
signed by the Company. According to price quoted from each bank, the RMB shows
appreciation tendency within 1 year, thus, gain on change in fair value shall occur in the
forward contract signed by the Company.
1. Up to 31 Mar. 2011, the undue financial derivative product contracts held by the
Company totaled US$ 370,353,000, of which there were 29 forward settlement contracts
Changes of market prices or
valuing US$ 358 million (all due before 31 Dec. 2011) and 1 forward purchase contract
fair values in the reporting
valuing US$ 12,353,000 (due before 30 Jun. 2011). The two said kinds of financial
period of the invested
derivative products accounted for 52.95% of the closing net assets of the Company.
derivatives. And the analysis
2. For Jan. to Mar. 2011, the due financial derivative products of the Company totally
on the fair value of the
equaled to US$ 142,264,400, of which US$ 132,264,400 was actually delivered and the
derivatives should include the
gain generated was RMB 17,691,100. The due forward settlement was US$ 138 million,
specific use methods and the
of which US$ 128 million was delivered as scheduled, generating gain of RMB
relevant assumptions and
18,310,200; US$ 10 million was extended; and the due forward foreign exchange trading
parameters.
amount equaled to US$ 4,264,400, which was all delivered as scheduled and caused loss
of RMB 619,100.
Whether significant changes
Unchanged
occurred to the Company’s
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Report for the First Quarter of 2011 of Lu Thai Textile Co., Ltd.
accounting policy and specific
accounting principles of
derivatives in the reporting
period compared to the
previous reporting period
Concerning the Company’s derivative transactions, the Company’s independent directors
Zhou Zhiji, Li Zhixian, Qi Haodong, Bi Xiuli and Wang Lei issued their professional
opinions as follows:
1. Up to 31 Mar. 2011, the undue financial derivative product contracts held by the
Company totaled US$ 370,353,000, of which there were 29 forward settlement contracts
valuing US$ 358 million (all due before 31 Dec. 2011) and 1 forward purchase contract
valuing US$ 12,353,000 (due before 30 Jun. 2011). The two said kinds of financial
derivative products accounted for 52.95% of the closing net assets of the Company.
2. For Jan. to Mar. 2011, the due financial derivative products of the Company totally
equaled to US$ 142,264,400, of which US$ 132,264,400 was actually delivered and the
gain generated was RMB 17,691,100. The due forward settlement was US$ 138 million,
of which US$ 128 million was delivered as scheduled, generating gain of RMB
18,310,200; US$ 10 million was extended; and the due forward foreign exchange trading
amount equaled to US$ 4,264,400, which was all delivered as scheduled and caused loss
of RMB 619,100.
3. The Company conducted derivative investment transactions 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 Investment of Lu Thai
Textile Co., Ltd. and the Plan for Derivative Transactions in 2011 approved at the First
Special Session of the Shareholders’ General Meeting for 2011.
Specific opinion from
4. The Company has formulated and improved the organizational structure, business
independent directors,
operation flow chart, approval flow chart and other internal control rules for derivative
sponsors or financial
transactions, which are executed effectively.
consultants on the Company’s
5. On the basis of its normal operation, the Company used its own funds to conduct
derivatives investment and
derivative investment transactions, which could help the Company avoid the risk of RMB
risk control
exchange rate changes and improve the Company’s resistance ability to exchange rate
fluctuations. Such a move of the Company would do no harm to the interest of the
Company and its shareholders.
6. In the reporting period, the Company conducted derivative investment transactions in
strict compliance with relevant laws, regulations, the Company’s Articles of Association
and the Company’s Management Rules for Derivative Transactions.
7. The Management Rules for Derivative Transactions was reviewed and approved at the
First Session of the Sixth Board of Directors, and the Plan for Derivative Transactions in
2011 was approved at the First Special Session of the Shareholders’ General Meeting for
2011, both of which further improved the management over derivative investments.
8. In accordance with the Article 26 of the Memorandum of the Shenzhen Stock Exchange
for Information Disclosure - Derivative Investment, the Company performed the relevant
information disclosure duty in its report for the first quarter of 2011.
To sum up, we were of the opinion that it would strengthen the Company’s
competitiveness to use derivative transactions with focus on forward settlement and
purchase as an effective tool to avoid foreign exchange risks, to strengthen the relevant
internal control and to carry out the loss and risk prevention measures so as to improve the
operation and management. It was considered feasible for the Company to conduct
derivative transactions with focus on forward settlement and purchase, the relevant risks
were controllable, and no harm was done to interests of the Company’s shareholders.
3.6.1 Derivative investments held at the end of the reporting period
√Applicable □Inapplicable
Unit: RMB
Proportion of the
closing contract
Opening contract Closing contract Gain or loss in the
Type of contract amount in the
amount amount reporting period
closing net assets of
the Company (%)
Forward settlement of exchange 1,845,992,324.62 2,442,005,067.80 17,691,123.40 52.95%
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Report for the First Quarter of 2011 of Lu Thai Textile Co., Ltd.
contract
Total 1,845,992,324.62 2,442,005,067.80 17,691,123.40 52.95%
§4 Attachments
4.1 Balance sheet
Prepared by Lu Thai Textile Co., Ltd. 31 Mar. 2011 Unit: RMB Yuan
Closing balance Opening balance
Items
Consolidation The Company Consolidation The Company
Current Assets:
Monetary funds 720,231,437.94 527,511,992.57 604,175,236.37 361,992,869.89
Transactional financial assets 24,051,700.00 16,911,500.00 40,418,200.00 34,232,000.00
Notes receivable 159,187,343.26 127,895,330.21 137,384,889.66 110,798,047.01
Accounts receivable 198,493,493.95 233,342,054.23 155,354,359.04 199,861,650.50
Accounts paid in advance 200,446,963.23 426,138,946.66 387,788,595.85 532,649,958.83
Interest receivable 1,393,117.71 1,393,117.71 1,568,105.85 1,568,105.85
Dividend receivable 4,957,735.18 4,957,735.18
Other accounts receivable 48,116,558.22 11,106,414.70 74,903,936.45 29,173,351.08
Financial assets purchased
under agreements to resell
Inventories 1,903,529,667.40 1,397,220,509.30 1,466,286,582.16 818,532,240.13
Non-current assets due within 1
year
Other current assets
Total current assets 3,255,450,281.71 2,746,477,600.56 2,867,879,905.38 2,093,765,958.47
Non-current assets:
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 68,942,600.00 894,295,189.90 68,942,600.00 894,295,189.90
Investing property
Fixed assets 3,628,247,705.96 2,218,707,458.11 3,644,240,059.73 2,225,236,167.82
Construction in progress 51,112,578.19 10,520,274.77 66,439,271.92 34,661,741.56
Engineering materials 18,304,421.60 18,304,421.60 1,164,182.23 1,164,182.23
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 292,830,181.95 163,785,473.59 293,314,520.77 163,305,988.78
R&D expense
Goodwill 20,563,803.29 20,563,803.29
Long-term deferred expenses
Deferred income tax assets 56,054,753.29 26,373,471.69 53,338,920.01 26,495,459.57
Other non-current assets
Total of non-current assets 4,136,056,044.28 3,331,986,289.66 4,148,003,357.95 3,345,158,729.86
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Report for the First Quarter of 2011 of Lu Thai Textile Co., Ltd.
Total assets 7,391,506,325.99 6,078,463,890.22 7,015,883,263.33 5,438,924,688.33
Current liabilities:
Short-term borrowings 1,467,757,452.70 1,086,603,156.72 869,557,204.66 639,536,604.66
Transactional financial
1,345,242.81 1,345,242.81 1,950,713.28 1,950,713.28
liabilities
Notes payable 25,835,883.41 16,896,997.82 78,598,872.76 95,746,948.58
Accounts payable 194,845,239.16 353,337,987.41 469,527,076.77 180,827,824.08
Accounts received in advance 79,937,198.24 45,507,344.67 147,284,467.21 38,437,023.40
Financial assets sold for
repurchase
Handling charges and
commissions payable
Employee’s compensation
274,909,269.17 252,183,997.94 331,045,622.56 289,512,883.21
payable
Tax payable -6,255,820.45 -3,647,586.52 -12,806,832.19 15,139,752.22
Interest payable 4,864,010.97 4,864,010.97 4,805,148.11 4,805,148.11
Dividend payable 3,140,556.64 442,309.44 3,259,512.84 442,309.44
Other accounts payable 174,168,783.84 17,713,354.26 138,264,754.93 12,940,429.46
Non-current liabilities due
54,438,020.00 54,438,020.00 69,364,725.00 69,364,725.00
within 1 year
Other current liabilities
Total current liabilities 2,274,985,836.49 1,829,684,835.52 2,100,851,265.93 1,348,704,361.44
Non-current liabilities:
Long-term borrowings 67,550,820.00 67,550,820.00 86,368,685.00 86,368,685.00
Bonds payable
Long-term payables 9,735,560.00 9,735,560.00
Specific payables
Estimated liabilities
Deferred income tax liabilities 6,526,246.77 2,536,725.00 8,908,329.73 5,134,800.00
Other non-current liabilities 68,089,748.70 31,800,266.62 68,422,326.66 31,963,066.63
Total non-current liabilities 151,902,375.47 101,887,811.62 173,434,901.39 123,466,551.63
Total liabilities 2,426,888,211.96 1,931,572,647.14 2,274,286,167.32 1,472,170,913.07
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share
994,864,800.00 994,864,800.00 994,864,800.00 994,864,800.00
capital)
Capital reserves 1,130,442,805.12 1,127,872,338.27 1,130,442,805.12 1,127,872,338.27
Less: Treasury stock
Specific reserves
Surplus reserves 428,440,485.70 428,440,485.70 428,440,485.70 428,440,485.70
Provisions for general risks
Retained profits 2,062,586,208.18 1,595,713,619.11 1,854,833,169.63 1,415,576,151.29
Foreign exchange difference -4,653,130.46 -4,447,846.98
Total equity attributable to owners
4,611,681,168.54 4,146,891,243.08 4,404,133,413.47 3,966,753,775.26
of the Company
Minority interests 352,936,945.49 337,463,682.54
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Report for the First Quarter of 2011 of Lu Thai Textile Co., Ltd.
Total owners’ equity 4,964,618,114.03 4,146,891,243.08 4,741,597,096.01 3,966,753,775.26
Total liabilities and owners’
7,391,506,325.99 6,078,463,890.22 7,015,883,263.33 5,438,924,688.33
equity
4.2 Income Statement
Prepared by Lu Thai Textile Co., Ltd. Jan.- Mar. 2011 Unit: RMB Yuan
Jan.-Mar. 2011 Jan.-Mar. 2010
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 1,412,599,864.78 1,130,511,602.06 1,007,921,744.76 807,994,022.17
Including: Sales income 1,412,599,864.78 1,130,511,602.06 1,007,921,744.76 807,994,022.17
Interest income
Handling charge and
commission income
II. Total operating cost 1,156,587,188.39 920,988,850.03 823,200,338.55 672,361,635.35
Including: Cost of sales 963,276,084.75 795,442,500.52 666,232,289.10 571,205,287.29
Interest expenses
Taxes and associate charges 4,839,721.86 2,797,821.54 456,638.83
Selling and distribution
38,812,200.44 12,518,737.17 33,245,656.29 11,189,324.46
expenses
Administrative expenses 136,817,794.98 107,128,249.26 107,559,667.81 81,497,027.60
Financial expenses 11,762,116.61 1,204,235.18 13,413,964.57 7,851,177.73
Asset impairment loss 1,079,269.75 1,897,306.36 2,292,121.95 618,818.27
Add: Gain/(loss) from change in fair
-15,761,029.53 -16,715,029.53 11,132,682.00 8,713,800.00
value (“-” means loss)
Gain/(loss) from investment
17,691,123.40 15,187,273.40 -18,888,118.02 -15,156,321.02
(“-” means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 257,942,770.26 207,994,995.90 176,965,970.19 129,189,865.80
Add: non-operating income 7,935,544.21 1,983,165.07 11,317,958.25 7,329,344.07
Less: non-operating expense 761,382.60 631,434.31 964,053.36 748,575.72
Including: loss from non-current
asset disposal
IV. Total profit (“-” means loss) 265,116,931.87 209,346,726.66 187,319,875.08 135,770,634.15
Less: Income tax expense 41,890,630.37 29,209,258.84 34,719,527.88 20,591,605.35
V. Net profit (“-” means loss) 223,226,301.50 180,137,467.82 152,600,347.20 115,179,028.80
Attributable to owners of the
207,753,038.55 180,137,467.82 148,214,182.13 115,179,028.80
Company
Minority shareholders’ income 15,473,262.95 4,386,165.07
VI. Earnings per share
(I) basic earnings per share 0.21 0.18 0.15 0.12
(II) diluted earnings per share 0.21 0.18 0.15 0.12
Ⅶ. Other comprehensive incomes -205,283.48 123,891.71
Ⅷ. Total comprehensive incomes 223,021,018.02 180,137,467.82 152,724,238.91 115,179,028.80
Attributable to owners of the
207,547,755.07 180,137,467.82 148,338,073.84 115,179,028.80
Company
9
Report for the First Quarter of 2011 of Lu Thai Textile Co., Ltd.
Attributable to minority
15,473,262.95 4,386,165.07
shareholders
Where there were business combinations under the same control in the reporting period, the
combined parties achieved net profits of RMB 0.00 before the combinations.
4.3 Cash Flow Statement
Prepared by Lu Thai Textile Co., Ltd. Jan.- Mar. 2011 Unit: RMB Yuan
Jan.-Mar. 2011 Jan.-Mar. 2010
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating activities:
Cash received from sale of commodities
1,399,803,050.59 1,100,050,104.07 1,111,919,061.37 897,606,220.43
and rendering of service
Tax refunds received 66,693,051.06 43,990,168.64 27,298,278.08 15,182,945.85
Other cash received relating to operating
14,521,696.52 3,044,588.74 19,199,638.81 11,458,572.27
activities
Subtotal of cash inflows from operating
1,481,017,798.17 1,147,084,861.45 1,158,416,978.26 924,247,738.55
activities
Cash paid for goods and services 992,472,352.64 672,366,754.00 757,121,903.49 642,780,076.15
Cash paid to and for employees 299,828,060.53 233,480,985.21 215,035,893.24 169,571,172.54
Various taxes paid 49,175,537.92 30,392,750.57 38,805,096.22 16,357,140.59
Other cash payment relating to operating
79,725,752.82 34,927,194.03 48,063,673.39 30,060,929.61
activities
Subtotal of cash outflows from operating
1,421,201,703.91 971,167,683.81 1,059,026,566.34 858,769,318.89
activities
Net cash flows from operating activities 59,816,094.26 175,917,177.64 99,390,411.92 65,478,419.66
II. Cash flows from investing activities:
Cash received from disposal of
investments
Cash received from return on
investments
Net cash received from disposal of fixed
assets, intangible assets and other long-term 161,911.02 161,911.02 186,865.38 157,365.38
assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
19,402,067.81 16,711,741.58 571,533.38 293,758.14
investing activities
Subtotal of cash inflows from
19,563,978.83 16,873,652.60 758,398.76 451,123.52
investing activities
Cash paid to acquire fixed assets,
67,455,785.46 39,535,339.67 145,557,254.01 129,621,443.62
intangible assets and other long-term assets
Cash paid for investment 12,000,000.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries and
other business units
Other cash payments relating to investing
18,888,118.02 15,156,321.02
activities
Subtotal of cash outflows from investing
67,455,785.46 39,535,339.67 176,445,372.03 144,777,764.64
activities
Net cash flows from investing activities -47,891,806.63 -22,661,687.07 -175,686,973.27 -144,326,641.12
III. Cash flows from financing activities:
Cash received from capital
contributions
Including: Cash received from minority
shareholder investments by subsidiaries
10
Report for the First Quarter of 2011 of Lu Thai Textile Co., Ltd.
Cash received from borrowings 574,654,800.55 222,127,900.55 415,083,480.00 285,140,500.00
Cash received from issuance of bonds
Other cash received relating to
5,000,000.00 8,300,000.00
financing activities
Subtotal of cash inflows from financing
579,654,800.55 222,127,900.55 423,383,480.00 285,140,500.00
activities
Repayment of borrowings 451,536,913.08 200,639,675.58 248,666,318.88 129,140,261.40
Cash paid for interest expenses and
14,961,803.91 8,953,486.71 6,613,281.44 1,806,256.42
distribution of dividends or profit
Including: dividends or profit paid by
subsidiaries to minority shareholders
Other cash payments relating to
8,460,000.00 10,000,000.00
financing activities
Sub-total of cash outflows from financing
474,958,716.99 209,593,162.29 265,279,600.32 130,946,517.82
activities
Net cash flows from financing activities 104,696,083.56 12,534,738.26 158,103,879.68 154,193,982.18
IV. Effect of foreign exchange rate changes
-564,169.62 -271,106.15 -1,046,924.44 -1,181,527.14
on cash and cash equivalents
V. Net increase in cash and cash
116,056,201.57 165,519,122.68 80,760,393.89 74,164,233.58
equivalents
Add: Cash and cash equivalents at the
522,955,236.37 280,772,869.89 569,968,526.84 324,783,025.04
period-begin
VI. Cash and cash equivalents at the
639,011,437.94 446,291,992.57 650,728,920.73 398,947,258.62
period-end
4.4 Auditor’s report
Auditor’s opinion: un-audited
§5 Other Information
5.1 Capital occupation by the principal shareholder and its affiliated enterprises for non-operating
purposes and the repayment progress thereof
□Applicable √Inapplicable
5.2 Provision of external guarantees in violation of the prescribed procedure
□Applicable √Inapplicable
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