Stock Code: 000726, 200726 Short Form of the Stock: Luthai A, Luthai B Announcement No.: 2011-033
LU THAI TEXTILE CO., LTD.
SUMMARY OF SEMI-ANNUAL REPORT 2011
§1 Important Notice
1.1 The Board of Directors, the Supervisory Committee as well as directors,
supervisors and senior managements of Lu Thai Textile Co., Ltd (hereinafter referred
to as the Company) guarantee that there are no omissions, fictitious or serious
misleading statements carried in the report and will take all responsibilities, individual
and/or joint, for the authenticity, accuracy and integrality of the whole contents.
The Summary of Semi-annual Report 2011 is abstracted from the full text of the
Semi-annual Report 2011; and the full text of the Semi-annual Report 2011 is
published on the internet website www.cninfo.com.cn in the mean time. The investors
are suggested to read the full text to understand more details.
1.2 All other directors than the following one attended in person the board session for
reviewing the semi-annual report.
Name of director Office title Reason for not attending the session in person Name of proxy
Li Zhixian Independent director For reason of work No proxy
1.3 The Semi-annual Financial Report 2011 has not been audited by a CPA firm.
1.4 Mr. Liu Shizhen, company principal, and Ms. Zhang Hongmei, head of the
accounting work and the accounting department (chief of accounting) hereby declare
that the Financial Report enclosed in the Semi-annual 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 Basic information
Short form of the stock Luthai A, Luthai B
Stock code 000726, 200726
Stock exchange Shenzhen Stock Exchange
Company Secretary Securities Affairs Representative
Name Qin Guiling Zheng Weiyin
Contact address No. 81, Songling East Road, Zichuan District, Zibo No. 81, Songling East Road, Zichuan District, Zibo
Tel 0533-5285166 0533-5285166
Fax 0533-5418833, 5282188 0533-5418833, 5282188
E-mail qinguiling@lttc.com.cn wyzheng@lttc.com.cn
2.2 Financial highlights
2.2.1 Main accounting data and financial indices
Unit: RMB Yuan
At the end of the At the end of last
Increase/decrease (%)
reporting period year
Total assets (Yuan) 7,355,255,187.71 7,015,883,263.33 4.84%
Owners’ equity attributable to shareholders of the
4,647,919,144.80 4,404,133,413.47 5.54%
listed company (Yuan)
Share capital (share) 994,864,800.00 994,864,800.00 0.00%
Net assets per share attributable to shareholders of
4.67 4.43 5.42%
the listed company (Yuan/share)
In the reporting
The same period of
period (from Jan. to Increase/decrease (%)
last year
Jun.)
Operating revenues (Yuan) 2,980,813,097.20 2,246,850,916.86 32.67%
Operating profit (Yuan) 623,059,761.14 443,572,068.68 40.46%
Total profit (Yuan) 627,922,258.35 463,393,367.66 35.51%
Net profit attributable to shareholders of the listed
491,647,065.96 366,877,951.37 34.01%
company (Yuan)
Net profit attributable to shareholders of the listed
company after deducting non-recurring gains and 476,456,565.30 348,475,975.27 36.73%
losses (Yuan)
Basic earnings per share (Yuan/share) 0.49 0.37 32.43%
Diluted earnings per share (Yuan/share) 0.49 0.37 32.43%
Weighted average ROE (%) 10.86% 9.23% 1.63%
Weighted average ROE after deducting
10.53% 8.76% 1.77%
non-recurring gains and losses (%)
Net cash flows from operating activities (Yuan) 428,569,250.90 290,608,340.78 47.47%
Net cash flows per share from operating activities
0.43 0.29 48.28%
(Yuan/share)
2.2.2 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 non-current asset disposal -7,353,835.83
Government subsidies recorded into current gains and losses, excluding those subsidies which
are closely related to the normal operation of the Company and are enjoyed at fixed amounts or 12,444,285.74
proportions according to certain state standards
Gains and losses from changes in fair value of transaction financial assets and transaction
financial responsibilities, and investment income from disposal of transaction financial
19,840,081.05
assets/responsibilities and financial assets available for sale, excluding valid hedging business
relating to normal operation.
Other non-operating incomes/expenses besides the items above -227,952.70
Effect on income tax -6,710,756.03
Effect on minority interests -2,801,321.57
Total 15,190,500.66 -
2.2.3 Difference between PRC GAAP and IFRSs
√Applicable □Inapplicable
Unit: RMB Yuan
Net profit attributable to shareholders of the Owners’ equity attributable to shareholders
Company of the Company
Same period of last
Reporting period Closing amount Opening amount
year
Data under IFRS 492,771,565.96 368,002,451.37 4,631,869,644.80 4,386,959,413.47
Data under PRC GAAP 491,647,065.96 366,877,951.37 4,647,919,144.80 4,404,133,413.47
Items and total adjusted under IFRS:
Value increments of fixed
assets due to translating the
USD statements into RMB
0.00 0.00 -3,230,000.00 -3,230,000.00
statements in 1996, which
was not recognized under
IFRSs
Impact on the reporting
period of the evaluated
value increments of fixed
265,500.00 265,500.00 -5,472,500.00 -5,738,000.00
asset investments, which
was not recognized under
IFRSs
Impact of deductible tax for
domestic equipments being
859,000.00 859,000.00 -7,347,000.00 -8,206,000.00
recognized as deferred
income under IFRSs
Total of difference under
1,124,500.00 1,124,500.00 -16,049,500.00 -17,174,000.00
IFRS and PRC GAAP
1. Impact of the value increments from translating foreign currency fixed assets
Recording currency of the Company was changed from USD to RMB in 1996, and fixed assets
appraised due to fluctuation of exchange rate. The increment was listed in original value and
capital public reserves according to PRC GAAP but was not recognized under IFRS. According to
regulations in IFRS, the Company will amortize the difference in accordance with use term of
fixed assets, and then will adjust net profit and net assets.
2. Impact of the evaluated value increments of assets
Explanation on difference
The Company invested on Luqun Textile according to appraisal of fixed assets, and the increment
between IFRS and PRC
of appraisal will record in capital public reserves under PRC GAAP but will not be recognized
GAAP
under IFRS. According to regulations in IFRS, the Company will amortize the difference in
accordance with use term of fixed assets, and then will adjust net profit and net assets.
3. Impact of income tax deduction due to domestically-manufactured equipments
The Company enjoyed the right of purchase of domestically-manufactured equipment to deduct
tax, and reduce income tax directly under PRC GAAP, but recognized as deferred income relating
to assets under IFRS. According to regulations in IFRS, the Company will amortize the difference
in accordance with use term of fixed assets, and then will adjust net profit and net assets.
§3. Changes in Share Capital and Particulars about Shareholders
3.1 Statement of change in shares
√Applicable □Inapplicable
Unit: share
Before the change Increase/decrease during the change (+/-) After the change
Capitaliz
Issuance
Bonus ation of
Amount Proportion of new Others Subtotal Amount Proportion
shares public
shares
reserve
I. Shares subject to
217,923,792 21.90% -98,358,000 -98,358,000 119,565,792 12.01%
trading moratorium
1. Shares held by state
2. Shares held by
state-owned corporation
3. Shares held by other
98,358,000 9.89% -98,358,000 -98,358,000 0
domestic investors
Including: shares held
by domestic
98,358,000 9.89% -98,358,000 -98,358,000 0
non-state-owned
corporation
Shares held by
domestic natural person
4. Shares held by
118,232,400 11.88% 118,232,400 11.88%
foreign investors
Including: shares held
118,232,400 11.88% 118,232,400 11.88%
by foreign corporation
Shares held by foreign
natural person
5. Shares held by senior
1,333,392 0.13% 1,333,392 0.13%
executives
II. Shares not subject to
776,941,008 78.10% 98,358,000 98,358,000 875,299,008 87.99%
trading moratorium
1. RMB ordinary shares 452,951,828 45.53% 98,358,000 98,358,000 551,309,828 55.42%
2. Domestically listed
323,989,180 32.57% 323,989,180 32.57%
foreign shares
3. Overseas listed
foreign shares
4. Others
III. Total shares 994,864,800 100.00% 0 994,864,800 100.00%
3.2 Particulars about shares held by the top ten shareholders and the top ten
shareholders not subject to trading moratorium.
Unit: Share
Total shareholders 121,231
Particulars about shares held by the top ten shareholders
Shares subject Shares
Nature of Shareholding Total shares
Name of shareholders to trading pledged or
shareholders ratio held
moratorium frozen
Domestic
ZIBO LUCHENG TEXTILE INVESTMENT CO., LTD non-state-owned 12.40% 123,314,700 0 0
corporation
Foreign
TAILUN CO., LTD 11.88% 118,232,400 118,232,400 0
corporation
Foreign
DBS VICKERS (HONG KONG) LTD A/C CLIENTS 4.08% 40,628,642 0 0
corporation
Domestic
E FUND VALUE GROWTH MIXED FUND non-state-owned 0.66% 6,599,929 0 0
corporation
Foreign
AVIVA INVESTORS 0.60% 5,965,096 0 0
corporation
Domestic
BOSERA TERTIARY INDUSTRY GROWTH STOCK
non-state-owned 0.50% 4,999,976 0 0
FUND
corporation
GUOTAI JUNAN SECURITIES(HONGKONG) Foreign
0.40% 4,004,613 0 0
LIMITED corporation
Domestic natural
LU BEISHE 0.40% 3,946,372 0 0
person
Domestic
YUHONG INVESTMENT FUND non-state-owned 0.33% 3,300,000 0 0
corporation
Foreign
TOYO SECURITIES ASIA LIMITED-A/C CLIENT. 0.31% 3,128,121 0 0
corporation
Particulars about shares held by the top ten shareholders not subject to trading moratorium
Shares not subject to
Name of shareholders trading moratorium Type of shares
held
ZIBO LUCHENG TEXTILE INVESTMENT CO., LTD 123,314,700 RMB ordinary shares
Domestically listed
DBS VICKERS (HONG KONG) LTD A/C CLIENTS 40,628,642
foreign shares
E FUND VALUE GROWTH MIXED FUND 6,599,929 RMB ordinary shares
Domestically listed
AVIVA INVESTORS 5,965,096
foreign shares
BOSERA TERTIARY INDUSTRY GROWTH STOCK FUND 4,999,976 RMB ordinary shares
Domestically listed
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 4,004,613
foreign shares
LU BEISHE 3,946,372 RMB ordinary shares
YUHONG INVESTMENT FUND 3,300,000 RMB ordinary shares
Domestically listed
TOYO SECURITIES ASIA LIMITED-A/C CLIENT. 3,128,121
foreign shares
ORIENT SECURITIES ASSET MANAGEMENT COMPANY LIMITED – BANK OF
3,000,000 RMB ordinary shares
CHINA – ORIENT RED NO.2 PLAN ON MANAGEMENT OF COLLECTED ASSETS
Among the aforesaid shareholders, Zibo Lucheng Textile Investment Co., Ltd is
the first principal shareholder and Tailun Co., Ltd is the sponsor of foreign
Explanation on associated relationship among the
shares. Other shareholders were shareholders holding circulation shares. The
aforesaid shareholders or acting-in-concert
Company was unknown whether there exists associated relationship among the
top ten shareholders of tradable share.
3.3 Particulars about change of the controlling shareholder and actual controller of the
Company
□Applicable √Inapplicable
§4. Particulars about Directors, Supervisors and Senior Executives
4.1 Particulars about changes in shares held by directors, supervisors and senior
executives
□Applicable √Inapplicable
§5 Report of the Board of Directors
5.1 Statement on main business classified according to industries and products
Unit: RMB Ten thousand
Main business lines classified by industries
Year-on-year Year-on-year Year-on-year
Operating Gross profit rate increase/decreas increase/decreas increase/decrease
Industries or products Operating cost
revenue (%) e of operating e of operating of gross profit
revenue (%) cost (%) rate (%)
Textile and garment 269,903.18 173,973.72 35.54% 35.79% 34.54% 0.60%
Agriculture (cotton
6,553.41 5,597.93 14.58% -15.96% -3.25% -11.22%
planting)
Thermo-electricity
6,571.99 6,696.85 -1.90% 6.44% 3.96% 2.43%
(electricity and gas)
Other 15,052.73 10,408.55 30.85% 33.63% 56.59% -10.14%
Total 298,081.31 196,677.05 34.02% 32.67% 32.23% 0.22%
Main business lines classified by products
Shirt fabrics 206,072.69 132,081.36 35.91% 39.54% 37.21% 1.09%
Shirts 63,830.49 41,892.36 34.37% 24.96% 26.75% -0.93%
Lint 6,553.41 5,597.93 14.58% -15.96% -3.25% -11.22%
Electricity and gas 6,571.99 6,696.85 -1.90% 6.44% 3.96% 2.43%
Others 15,052.73 10,408.55 30.85% 33.63% 56.59% -10.14%
Total 298,081.31 196,677.05 34.02% 32.67% 32.23% 0.22%
5.2 Main business classified according to regions
Unit: RMB Ten thousand
Region Operating revenue Year-on-year increase/decrease (%)
Japan, South Korea 24,440.28 12.25%
Hong Kong 27,846.28 47.31%
Southeast Asia 66,443.13 20.64%
Europe, America 72,324.31 37.87%
Others 43,057.35 86.66%
China Mainland 63,969.96 19.78%
Total 298,081.31 32.67%
5.3 Explanation on reasons of significant changes in main operations and its structure
□Applicable √Inapplicable
5.4 Explanation on reasons of significant changes in profitability of main operations
(gross profit ratio) compared with the previous year
□Applicable √Inapplicable
5.5 Analysis on reasons of significant changes in profit breakdown compared with the
previous year
□Applicable √Inapplicable
5.6 Utilization of the raised proceeds
5.6.1 Utilization of the raised proceeds
√Applicable □Inapplicable
Unit: RMB Ten thousand
Total raised capital 95,081.45
Total raised capital input in the
Total raised capital of which the use was 725.37
0.00 reporting period
changed in the reporting period
Accumulative raised capital of which the
0.00
use was changed
Accumulative raised capital input 78,535.95
Proportion of accumulative raised capital of
0.00%
which the use was changed
Projec
t
chang Accum Profit
Investment
Projects invested with ed or ulative genera Reach Material
Raised Investment Input in progress Date when the
raised capital as not input ted in the change in
capital after the up to the project reaches
promised and (inclu up to the expecte the project
input as adjustment reporting period-end the expected
investments with ding the reporti d profit feasibility
promised (1) year (%)(3)＝ usable condition
over-raised capital partial period- ng or not or not
(2)/(1)
ly end (2) period
chang
ed)
Projects invested with
raised capital as
promised
Production Project for
150-thousand Ingot 100.00
No 33,460.93 26,460.93 0.00 26,460.93 30 Aug. 2008 0.00 Yes No
Top-grade Fine Combed %
Yarns
50-thousand Ingot
100.00
Two-for-one Twisting Yes 14,251.87 4,086.83 0.00 4,086.83 3 Jan. 2009 0.00 Yes No
%
Production Line Project
Project of
10-million-meter 100.00
No 14,533.69 14,533.69 0.00 14,533.69 30 Jun. 2010 0.00 Yes No
Top-grade Fabrics for %
Women’s Wear
Project for Marketing
No 20,000.00 20,000.00 725.37 3,454.50 17.27% 30 Dec. 2012 0.00 Yes No
Network Development
Project for
100.00
Supplementing Working No 30,000.00 30,000.00 0.00 30,000.00 17 Jan. 2009 0.00 Yes No
%
Capital
Subtotal of promised
- 112,246.49 95,081.45 725.37 78,535.95 - - 0.00 - -
investment projects
Investments of
over-raised capital
Repaying bank loans (if
- - - - -
any)
Supplementing working
- - - - -
capital (if any)
Subtotal of investments
- 0.00 0.00 0.00 0.00 - - 0.00 - -
with over-raised capital
Total - 112,246.49 95,081.45 725.37 78,535.95 - - 0.00 - -
Reason for failing to
reach scheduled
progress or projected The Project for Marketing Network Development is proceeding as scheduled.
income (listed in
specific projects)
Explanation on
Up to 30 Jun. 2011, no material change had occurred in the feasibility of the Company’s raised capital
significant changes in
investment projects.
feasibility of projects
Amount, usage and
usage progress of N/A
over-raised capital
Changes of
implementation places
N/A
of projects invested
with raise capital
Adjustment on
N/A
implementation
methods of projects
invested with raise
capital
Applicable
Advance input for On 11 Jan. 2009, Proposal on Replacing the Self-collected Funds of RMB 264,861,646.97 with the Input Raised
raised capital Capital in Advance at the 27th Meeting of the 5th Board of Directors. Sponsor Guotai Junan Securities Co., Ltd
investment projects and expressed the same opinion. The Company engaged RSM China Certified Public Accountants to audit
relevant replacement investment of self-collected capital to project should be invested with raised capital in advance, and issued
certification report ZRYHZS Zi [2008] No. 3754.
Applicable
On 3 Sept. 2010, it was approved at the Third Session of the Sixth Board of Directors to temporarily supplement
Idle raised capital for the working capital with RMB 94 million of raised capital for a six-month term from Sept. 2010 to Mar. 2011.
temporarily The amount was due on 3 Mar. 2011. The Company transferred the amount to its special account for raised
supplementing working capital on the day before and performed the relevant information disclosure obligation on the day next. Later,
capital the Ninth Session of the Sixth Board of Directors resolved to temporarily supplement working capital with idle
raised capital of RMB 94 million for a term from 28 Mar. 2011 to 28 Sept. 2011. The relevant announcement
was released on Securities Times, Shanghai Securities News and Ta Kung Pao on 30 Mar. 2011.
Balance and reason N/A
Usage and whereabouts
The unused raised capital will be input for the Project for Marketing Network Development.
of unused raise capital
Problems found in the
usage and disclosure
Naught
affairs of raised capital
and other situations
5.6.2 Change of projects invested with raised capital
□Applicable √Inapplicable
5.7 Business plan revised by the Board of Directors for the second half of the year
□Applicable √Inapplicable
5.8 Estimation on accumulative net profit from the beginning of the year to the end of
next reporting period to be loss probably or the warning of its significant change
compared with the corresponding period of the last year and explanation on reason
□Applicable √Inapplicable
5.9 Explanation of the Management Team on “Non-standard Auditors’ Opinion” from
the Certified Public Accountants in the reporting period
□Applicable √Inapplicable
5.10 Explanation of the Board of Directors on changes and solutions of the issues
involved in “Non-standard Auditors’ Opinion” from the Certified Public Accountants
in the last year
□Applicable √Inapplicable
§6 Significant Events
6.1 Acquisition, sale and reorganization of assets
6.1.1 Assets acquired
□Applicable √Inapplicable
6.1.2 Assets sold
□Applicable √Inapplicable
6.1.3 Progress of these events and its influence on the operating results and financial
status in the reporting period after the report on assets restructure or announcement on
acquisition and sales of assets being published
□Applicable √Inapplicable
6.2 Guarantees
√Applicable □Inapplicable
Unit: RMB Ten thousand
External guarantees of the Company (excluding those for subsidiaries)
Disclosure
date and
number of Date of
Guarantee for a
the occurrence Actual Execution
Guaranteed Amount of Type of Term of related party or
announceme (date of amount of completed
party guarantee guarantee guarantee not (Yes or
nt in relation signing guarantee or not
No)
to the agreement)
guarantee
amount
Total external guarantee amount Total actual external guarantee
approved in the reporting period 0.00 amount in the reporting period 0.00
(A1) (A2)
Total external guarantee amount
Total actual external guarantee
approved by the period-end 0.00 0.00
balance at the period-end (A4)
(A3)
Guarantees provided by the Company for its subsidiaries
Disclosure
date and
Date of
number of Guarantee for a
occurrence Actual Execution
Guaranteed the public Amount of Type of Term of related party or
(date of amount of completed
party notice in guarantee guarantee guarantee not (Yes or
signing guarantee or not
relation to No)
agreement)
the guarantee
amount
Provision of
Zibo Lufeng
a
Weaving & 2011-023 30,000.00 10 May 2011 0.00 1 year No No
counter-guar
Dyeing Co., Ltd.
antee
Total amount of guarantees for Total actual amount of
subsidiaries approved in the 30,000.00 guarantees for subsidiaries in the 0.00
reporting period (B1) reporting period (B2)
Total amount of guarantees for Total actual balance of
subsidiaries approved by the 30,000.00 guarantees for subsidiaries at the 0.00
period-end (B3) period-end (B4)
Total guarantee amount of the Company (combination of the two kinds of guarantees above)
Total guarantee amount
Total actual guarantee amount in
approved in the reporting period 30,000.00 0.00
the reporting period (A2+B2)
(A1+B1)
Total guarantee amount
Total actual guarantee balance at
approved by the period-end 30,000.00 0.00
the period-end (A4+B4)
(A3+B3)
Proportion of the total actual guarantee balance (A4+B4) in the
0.00%
Company’s net assets
Of which:
Guarantee amount offered to shareholders, actual controller and related
0.00
parties (C)
Debt guarantee amount directly or indirectly provided for guaranteed
0.00
parties with an asset-liability ratio over 70% (D)
Amount of total guarantee over 50% of net assets (E) 0.00
Total of above-mentioned three kinds of guarantees (C+D+E) 0.00
Explanation on possibility to bear joint liability due to undue
Naught
guarantees
6.3 Non-operating credits and liabilities with related parties
√Applicable □Inapplicable
Unit: RMB Ten thousand
Selling products and offering labor service to Purchasing products and accepting labor
Related party related parties service from related parties
Incurred amount Balance Incurred amount Balance
Lucheng Textile and its subordinates 0.00 0.00 500.00 4,173.48
Total 0.00 0.00 500.00 4,173.48
In the reporting period, related-party transactions of selling products or offering
labor service to the controlling shareholder and its subsidiaries by the Company
were RMB 0.00, with the balance being RMB 0.00.
6.4 Significant lawsuits and arbitrations
□Applicable √Inapplicable
6.5 Other significant events and explanation and analysis on their influences and
solutions
□Applicable √Inapplicable
6.5.1 Securities investment
□Applicable √Inapplicable
6.5.2 Equity of other listed companies held by the Company
□Applicable √Inapplicable
6.5.3 Non-operating capital occupation by principal shareholders and its affiliated
enterprises and progress of debt repayment
□Applicable √Inapplicable
6.5.4 Implementation of commitments made by the Company, as well as its
shareholders and actual controller
Commitments in the reporting period or lasted to the reporting period by the Company,
its directors, supervisors, senior executives, shareholders holding over 5% shares,
actual controller and other related parties
√Applicable □Inapplicable
Commitment
Commitment Contents Execution
maker
Zibo Lucheng will not reduce its shareholding within 60
months after share merger reform; it proposed and voted The increase of shares with
for a cash distribution not lower than 50% of the profit dividends in 2005 and 2006 has
available for distribution in the year at the 2006 been finished. And the total profit
Shareholders’ General Meeting and 2007 Shareholders’ in 2008 has increased 58.06%
General Meeting; it will increase the LUTHAI A shares compared with that in 2005. As at
held by it through trading at the secondary market with 12 Jun. 2011, the period of trading
Zibo Lucheng
Commitments on the dividends received in 2005 and 2006, and the moratorium on the 98,358,000
Textile Investment
share merger reform increase of the LUTHAI A shares held shall be shares held by Zibo Lucheng
Co., Ltd
accomplished within 12 months after the dividend is Textile Investment Co., Ltd.
transferred to its account. In 2008, the total profit became due, and those shares have
increased by not less than 30% compared with that in been released for trading since 24
2005. Jun. 2011.
Within 24 months after that, the price of selling holding The committed term ranges from
shares shall not be lower than RMB 15 per share (if the 24 Jun. 2011 to 24 Jun. 2013.
share capital changes, ex-rights will be conducted).
Commitments made
in Acquisition Report
Naught Naught Naught
or Report on
Changes in Equity
Commitments made
in reorganization of Naught Naught Naught
significant assets
The Production Project for
150-thousand Ingot Top-grade
Fine Combed Yarns, the
50-thousand Ingot Two-for-one
Commitments made Lu Thai Textile Twisting Production Line Project,
Investment projects with raised funds
in issuance of shares Co., Ltd. the Project for Supplementing
Working Capital and the Project of
10-million-meter Top-grade
Fabrics for Women’s Wear among
the raised capital investment
projects were all accomplished.
And the Project for Marketing
Network Development is in
implementation as scheduled by
the Company.
Other commitments
(including
Naught Naught Naught
supplementary
commitments)
6.5.5 Pre-plan of the Board of Directors for profit distribution or turning capital
reserves into share capital
□Applicable √Inapplicable
6.5.6 Items of other comprehensive income
Unit: RMB Yuan
Same period of
Items Reporting period
last year
1. Profits/(losses) from available-for-sale financial assets
Less: Effects on income tax generating from available-for-sale financial
assets
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
2. Interests in the investee entities’ other comprehensive income as per
equity method
Less: Effects on income tax generating from the interests in the investee
entities’ other comprehensive income as per equity method
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
3. Profits/(losses) from cash flow hedging instrument
Less: Effects on income tax generating from cash flow hedging instrument
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
The adjustment value that is the converted initial recognition amount of
arbitrage project
Subtotal
4. Converted amount of foreign currency financial statements -715,557.69 106,785.38
Less: Net value of disposal of oversea operations that recognized into
current profit and loss
Subtotal -715,557.69 106,785.38
5. Other 1,570,000.00 2,350,000.00
Less: Effects on income tax generating from the others that included into
other comprehensive income
Net amount transferred into profit and loss in the current period that
7,215,239.04
recognized into other comprehensive income in prior period
Subtotal 1,570,000.00 -4,865,239.04
Total 854,442.31 -4,758,453.66
6.6 Researches, interviews and visits received during the reporting period
Way of Main discussion and materials
Time Place Visitor
reception provided by the Company
Reception room of Wang Liping, a researcher from SWS
31 Mar. 2011 Field research Basic information of the Company
the Company Research Co., Ltd.
Reception room of Zhang Hao, a researcher from Harvest Fund
31 Mar. 2011 Field research Basic information of the Company
the Company Management Co., Ltd.
Reception room of Chen Lei, a researcher from Bosera Asset
6 Apr. 2011 Field research Basic information of the Company
the Company Management (International) Co., Limited
Xu Xiao
Reception room of
12 Apr. 2011 Field research Shanghai Zhiyuan Investment Management Basic information of the Company
the Company
Co., Ltd.
Reception room of Kong Jun
13 Apr. 2011 Field research Basic information of the Company
the Company China Securities Co., Ltd.
Wang Sheng
Reception room of
13 Apr. 2011 Field research Beijing StarRock Investment Management Basic information of the Company
the Company
Co., Ltd.
Wang Hui
Reception room of
13 Apr. 2011 Field research Orient Securities Asset Management Basic information of the Company
the Company
Company Limited
Reception room of Weng Di
13 Apr. 2011 Field research Basic information of the Company
the Company Milestone Asset Management Co., Ltd.
§7 Financial Report
7.1 Auditing opinion
Financial Report √Un-audited □Audited
7.2 Financial statements
7.2.1 Balance Sheet
Prepared by Lu Thai Textile Co., Ltd. 30 Jun. 2011 Unit: RMB Yuan
Closing balance Opening balance
Items
Consolidation The Company Consolidation The Company
Current Assets:
Monetary funds 602,875,935.34 390,690,627.69 604,175,236.37 361,992,869.89
Transactional financial assets 17,838,500.00 14,127,600.00 40,418,200.00 34,232,000.00
Notes receivable 162,647,666.87 135,453,982.16 137,384,889.66 110,798,047.01
Accounts receivable 229,089,123.22 258,062,868.27 155,354,359.04 199,861,650.50
Accounts paid in advance 161,296,466.46 367,204,725.52 387,788,595.85 532,649,958.83
Interest receivable 1,568,105.85 1,568,105.85
Dividend receivable 757,735.18 4,957,735.18
Other accounts receivable 57,178,349.81 15,821,327.37 74,903,936.45 29,173,351.08
Financial assets purchased
under agreements to resell
Inventories 1,965,688,948.01 1,489,089,612.08 1,466,286,582.16 818,532,240.13
Non-current assets due within 1
year
Other current assets
Total current assets 3,196,614,989.71 2,671,208,478.27 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 1,063,495,189.90 68,942,600.00 894,295,189.90
Investing property
Fixed assets 3,570,154,535.50 2,188,862,926.84 3,644,240,059.73 2,225,236,167.82
Construction in progress 131,285,951.82 30,705,736.73 66,439,271.92 34,661,741.56
Engineering materials 9,193,455.62 9,193,455.62 1,164,182.23 1,164,182.23
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 296,923,282.95 168,842,398.22 293,314,520.77 163,305,988.78
R&D expense
Goodwill 20,563,803.29 20,563,803.29
Long-term deferred expenses
Deferred income tax assets 61,576,568.82 26,401,395.81 53,338,920.01 26,495,459.57
Other non-current assets
Total of non-current assets 4,158,640,198.00 3,487,501,103.12 4,148,003,357.95 3,345,158,729.86
Total assets 7,355,255,187.71 6,158,709,581.39 7,015,883,263.33 5,438,924,688.33
Current liabilities:
Short-term borrowings 1,270,010,628.14 1,088,530,892.02 869,557,204.66 639,536,604.66
Transactional financial
1,950,713.28 1,950,713.28
liabilities
Notes payable 20,181,314.79 18,198,745.01 78,598,872.76 95,746,948.58
Accounts payable 172,776,971.03 144,889,681.96 469,527,076.77 180,827,824.08
Accounts received in advance 110,695,917.73 38,546,541.39 147,284,467.21 38,437,023.40
Employee’s compensation
346,765,137.57 316,225,981.63 331,045,622.56 289,512,883.21
payable
Tax payable 33,489,030.35 29,778,247.05 -12,806,832.19 15,139,752.22
Interest payable 4,993,214.54 4,993,214.54 4,805,148.11 4,805,148.11
Dividend payable 473,881.74 442,309.44 3,259,512.84 442,309.44
Other accounts payable 160,631,031.77 39,337,122.92 138,264,754.93 12,940,429.46
Reinsurance accounts payable
Non-current liabilities due
70,193,820.00 70,193,820.00 69,364,725.00 69,364,725.00
within 1 year
Other current liabilities
Total current liabilities 2,190,210,947.66 1,751,136,555.96 2,100,851,265.93 1,348,704,361.44
Non-current liabilities:
Long-term borrowings 59,453,825.00 39,453,825.00 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 5,223,332.68 2,119,140.00 8,908,329.73 5,134,800.00
Other non-current liabilities 68,952,175.74 32,832,471.61 68,422,326.66 31,963,066.63
Total non-current liabilities 143,364,893.42 74,405,436.61 173,434,901.39 123,466,551.63
Total liabilities 2,333,575,841.08 1,825,541,992.57 2,274,286,167.32 1,472,170,913.07
Owners’ equity (shareholders’
equity):
Paid-up capital (share capital) 994,864,800.00 994,864,800.00 994,864,800.00 994,864,800.00
Capital reserves 1,132,013,228.18 1,129,442,356.86 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 2,097,764,035.59 1,780,419,946.26 1,854,833,169.63 1,415,576,151.29
Foreign exchange difference -5,163,404.67 -4,447,846.98
Total equity attributable to owners
4,647,919,144.80 4,333,167,588.82 4,404,133,413.47 3,966,753,775.26
of the Company
Minority interests 373,760,201.83 337,463,682.54
Total owners’ equity 5,021,679,346.63 4,333,167,588.82 4,741,597,096.01 3,966,753,775.26
Total liabilities and owners’
7,355,255,187.71 6,158,709,581.39 7,015,883,263.33 5,438,924,688.33
equity
7.2.2 Income Statement
Prepared by Lu Thai Textile Co., Ltd. Jan.-Jun. 2011 Unit: RMB Yuan
Reporting period Same period of last year
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 2,980,813,097.20 2,446,037,080.40 2,246,850,916.86 1,751,991,954.12
Including: Sales income 2,980,813,097.20 2,446,037,080.40 2,246,850,916.86 1,751,991,954.12
Interest income
II. Total operating cost 2,377,593,417.11 1,932,536,609.64 1,811,173,858.52 1,440,748,302.68
Including: Cost of sales 1,966,770,465.74 1,659,122,418.86 1,487,376,845.39 1,235,835,692.33
Interest expenses
Business taxes and
10,183,946.29 7,016,584.58 993,285.02
surcharges
Selling and distribution
69,650,595.48 24,526,783.77 68,719,116.26 24,201,970.48
expenses
Administrative expenses 302,871,120.98 234,105,097.30 224,789,075.22 170,818,713.12
Financial expenses 24,919,948.09 3,962,671.65 21,691,445.04 9,491,579.80
Asset impairment loss 3,197,340.53 3,803,053.48 7,604,091.59 400,346.95
Add: Gain/(loss) from change in
-20,628,986.72 -18,153,686.72 47,370,026.48 36,894,976.48
fair value (“-” means loss)
Gain/(loss) from investment
40,469,067.77 198,590,067.77 -39,475,016.14 -49,779,448.79
(“-” means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means
623,059,761.14 693,936,851.81 443,572,068.68 298,359,179.13
loss)
Add: non-operating income 16,132,647.68 4,367,494.26 24,385,856.61 9,804,213.56
Less: non-operating expense 11,270,150.47 8,600,188.35 4,564,557.63 3,179,278.85
Including: loss from non-current
8,210,095.87 5,770,478.89 2,543,123.20 1,915,165.19
asset disposal
IV. Total profit (“-” means loss) 627,922,258.35 689,704,157.72 463,393,367.66 304,984,113.84
Less: Income tax expense 102,778,942.74 76,144,162.75 70,864,590.29 48,213,265.07
V. Net profit (“-” means loss) 525,143,315.61 613,559,994.97 392,528,777.37 256,770,848.77
Attributable to owners of the
491,647,065.96 613,559,994.97 366,877,951.37 256,770,848.77
Company
Minority shareholders’
33,496,249.65 25,650,826.00
income
VI. Earnings per share
(I) basic earnings per share 0.49 0.62 0.37 0.26
(II) diluted earnings per
0.49 0.62 0.37 0.26
share
Ⅶ. Other comprehensive incomes 854,442.31 1,570,000.00 -4,758,453.66 2,350,000.00
Ⅷ. Total comprehensive incomes 525,997,757.92 615,129,994.97 387,770,323.71 259,120,848.77
Attributable to owners of the
492,501,508.27 615,129,994.97 362,119,497.71 259,120,848.77
Company
Attributable to minority
33,496,249.65 25,650,826.00
shareholders
For any business combination under the same control that took place in the reporting
period, the combined party achieved zero net profit before the combination.
7.2.3 Cash Flow Statement
Prepared by Lu Thai Textile Co., Ltd. Jan.-Jun. 2011 Unit: RMB Yuan
Reporting period Same period of last year
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating
activities:
Cash received from sale of
commodities and rendering of 2,907,657,809.50 2,355,123,348.10 2,388,095,445.18 1,813,042,113.77
service
Tax refunds received 137,376,748.67 107,772,367.45 72,312,447.45 47,564,837.26
Other cash received relating to
48,671,086.04 29,124,826.60 71,142,710.06 49,980,350.45
operating activities
Subtotal of cash inflows from
3,093,705,644.21 2,492,020,542.15 2,531,550,602.69 1,910,587,301.48
operating activities
Cash paid for goods and
1,885,346,210.11 1,571,780,676.70 1,686,333,341.13 1,299,960,779.49
services
Cash paid to and for employees 497,151,067.50 388,412,338.02 366,528,959.32 296,682,297.65
Various taxes paid 156,133,413.22 96,261,008.25 86,885,044.45 49,221,300.06
Other cash payment relating to
126,505,702.48 60,275,376.56 101,194,917.01 61,803,671.59
operating activities
Subtotal of cash outflows from
2,665,136,393.31 2,116,729,399.53 2,240,942,261.91 1,707,668,048.79
operating activities
Net cash flows from operating
428,569,250.90 375,291,142.62 290,608,340.78 202,919,252.69
activities
II. Cash flows from investing
activities:
Cash received from withdrawal
of investments
Cash received from return on
investments
Net cash received from disposal
of fixed assets, intangible assets 1,441,308.55 1,435,553.94 2,671,494.22 2,641,994.22
and other long-term assets
Net cash received from disposal
of subsidiaries or other business
units
Other cash received relating
43,850,591.47 36,611,151.54 1,422,063.03 893,994.31
to investing activities
Subtotal of cash inflows
45,291,900.02 38,046,705.48 4,093,557.25 3,535,988.53
from investing activities
Cash paid to acquire fixed
assets, intangible assets and other 179,444,420.85 99,193,611.36 302,812,923.60 262,269,704.09
long-term assets
Cash paid for investment 12,000,000.00 5,000,000.00
Net increase of pledged loans
Net cash paid to acquire
subsidiaries and other business
units
Other cash payments relating to
49,348,254.22 38,409,621.02
investing activities
Subtotal of cash outflows from
179,444,420.85 99,193,611.36 364,161,177.82 305,679,325.11
investing activities
Net cash flows from investing
-134,152,520.83 -61,146,905.88 -360,067,620.57 -302,143,336.58
activities
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments
by subsidiaries
Cash received from
737,509,387.29 277,825,850.55 794,539,059.82 736,996,079.82
borrowings
Cash received from issuance
of bonds
Other cash received relating to
87,790,000.00 82,790,000.00 17,600,000.00
financing activities
Subtotal of cash inflows from
825,299,387.29 360,615,850.55 812,139,059.82 736,996,079.82
financing activities
Repayment of borrowings 762,214,009.23 312,316,771.73 449,739,949.71 319,739,949.71
Cash paid for interest
expenses and distribution of 263,058,159.37 252,267,176.13 235,223,006.13 226,294,416.26
dividends or profit
Including: dividends or profit
paid by subsidiaries to minority
shareholders
Other cash payments relating
13,460,000.00 10,000,000.00
to financing activities
Sub-total of cash outflows from
1,038,732,168.60 564,583,947.86 694,962,955.84 546,034,365.97
financing activities
Net cash flows from financing
-213,432,781.31 -203,968,097.31 117,176,103.98 190,961,713.85
activities
IV. Effect of foreign exchange
rate changes on cash and cash -1,063,249.79 -258,381.63 -1,036,403.05 -860,609.75
equivalents
V. Net increase in cash and cash
79,920,698.97 109,917,757.80 46,680,421.14 90,877,020.21
equivalents
Add: Opening balance of
522,955,236.37 280,772,869.89 569,968,526.84 324,783,025.04
cash and cash equivalents
VI. Closing balance of cash and
602,875,935.34 390,690,627.69 616,648,947.98 415,660,045.25
cash equivalents
7.2.4 Statement of Changes in Owners’ Equity (Consolidated)
Prepared by Lu Thai Textile Co., Ltd. For the first half year of 2011 Unit: RMB Yuan
Reporting period Last year
Equity attributable to owners of the Company Equity attributable to owners of the Company
Paid-up Minorit Paid-up Minorit
Total Total
Items capital Less: Specifi Genera y capital Less: Specifi Genera y
Capital Surplus Retaine owners’ Capital Surplus Retaine owners’
(or treasur c l risk Others interest (or treasur c l risk Others interest
reserve reserve d profit equity reserve reserve d profit equity
share y stock reserve reserve s share y stock reserve reserve s
capital) capital)
994,86 1,130,4 428,44 1,854,8 337,46 4,741,5 994,86 1,135,3 374,42 1,418,4 267,97 4,187,6
I. Balance at the end of the -4,447, -3,458,
4,800.0 42,805. 0,485.7 33,169. 3,682.5 97,096. 4,800.0 56,168. 9,529.1 68,702. 7,062.4 37,771.
previous year 846.98 491.27
0 12 0 63 4 01 0 72 9 64 5 73
Add: change of accounting
policy
Correction of errors in
previous periods
Other
994,86 1,130,4 428,44 1,854,8 337,46 4,741,5 994,86 1,135,3 374,42 1,418,4 267,97 4,187,6
II. Balance at the beginning -4,447, -3,458,
4,800.0 42,805. 0,485.7 33,169. 3,682.5 97,096. 4,800.0 56,168. 9,529.1 68,702. 7,062.4 37,771.
of the year 846.98 491.27
0 12 0 63 4 01 0 72 9 64 5 73
III. Increase/ decrease of 242,93 280,08 436,36 553,95
1,570,4 -715,55 36,296, -4,913, 54,010, -989,35 69,486,
amount in the year (“-” 0,865.9 2,250.6 4,466.9 9,324.2
23.06 7.69 519.29 363.60 956.51 5.71 620.09
means decrease) 6 2 9 8
491,64 525,14 739,09 815,05
33,496, 75,961,
(I) Net profit 7,065.9 3,315.6 1,623.5 3,109.9
249.65 486.46
6 1 0 6
(II) Other comprehensive 1,570,0 -715,55 854,44 2,350,0 -989,35 1,360,6
incomes 00.00 7.69 2.31 00.00 5.71 44.29
491,64 525,99 739,09 816,41
1,570,0 -715,55 33,496, 2,350,0 -989,35 75,961,
Subtotal of (I) and (II) 7,065.9 7,757.9 1,623.5 3,754.2
00.00 7.69 249.65 00.00 5.71 486.46
6 2 0 5
(III) Capital paid in and 57,800, 57,800, -7,263, 9,223,6 1,960,3
423.06
reduced by owners 269.64 692.70 363.60 86.70 23.10
1. Capital paid in by 57,800, 57,800, 10,679, 10,679,
owners 000.00 000.00 050.43 050.43
2. Amounts of
share-based payments 0.00
recognized in owners’ equity
-7,263, -1,455, -8,718,
3. Others 423.06 269.64 692.70
363.60 363.73 727.33
-248,71 -303,71 -302,72 -264,41
-55,000 54,010, -15,698
(IV) Profit distribution 6,200.0 6,200.0 7,156.5 4,753.0
,000.00 956.51 ,553.07
0 0 1 7
1. Appropriations to 54,010, -54,010
surplus reserves 956.51 ,956.51
2. Appropriations to
general risk provisions
-248,71 -303,71 -248,71 -264,41
3. Appropriations to -55,000 -15,698
6,200.0 6,200.0 6,200.0 4,753.0
owners (or shareholders) ,000.00 ,553.07
0 0 0 7
4. Other
(V) Internal carry-forward
of owners’ equity
1. New increase of
capital (or share capital) from
capital public reserves
2. New increase of
capital (or share capital) from
surplus reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the
period
2. Used in the period
(Ⅶ) Other
994,86 1,132,0 428,44 2,097,7 373,76 5,021,6 994,86 1,130,4 428,44 1,854,8 337,46 4,741,5
-5,163, -4,447,
IV. Closing balance 4,800.0 13,228. 0,485.7 64,035. 0,201.8 79,346. 4,800.0 42,805. 0,485.7 33,169. 3,682.5 97,096.
404.67 846.98
0 18 0 59 3 63 0 12 0 63 4 01
7.2.5 Statement of Change in Owners’ Equity (the Company)
Prepared by Lu Thai Textile Co., Ltd. For the first half year of 2011 Unit: RMB Yuan
Reporting period Last year
Paid-up Paid-up
Less: General Total Less: General Total
Items capital Capital Specific Surplus Retained capital Capital Specific Surplus Retained
treasury risk owners’ treasury risk owners’
(or share reserve reserve reserve profit (or share reserve reserve reserve profit
stock reserve equity stock reserve equity
capital) capital)
I. Balance at the end of the 994,864,8 1,127,872 428,440,4 1,415,576 3,966,753 994,864,8 1,125,522 374,429,5 1,178,193 3,673,010
previous year 00.00 ,338.27 85.70 ,151.29 ,775.26 00.00 ,201.27 29.19 ,742.66 ,273.12
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning 994,864,8 1,127,872 428,440,4 1,415,576 3,966,753 994,864,8 1,125,522 374,429,5 1,178,193 3,673,010
of the year 00.00 ,338.27 85.70 ,151.29 ,775.26 00.00 ,201.27 29.19 ,742.66 ,273.12
III. Increase/ decrease of
1,570,018 364,843,7 366,413,8 2,350,137 54,010,95 237,382,4 293,743,5
amount in the year (“-”
.59 94.97 13.56 .00 6.51 08.63 02.14
means decrease)
613,559,9 613,559,9 540,109,5 540,109,5
(I) Net profit
94.97 94.97 65.14 65.14
(II) Other comprehensive 1,570,000 1,570,000 2,350,000 2,350,000
incomes .00 .00 .00 .00
1,570,000 613,559,9 615,129,9 2,350,000 540,109,5 542,459,5
Subtotal of (I) and (II)
.00 94.97 94.97 .00 65.14 65.14
(III) Capital paid in and
18.59 18.59 137.00 137.00
reduced by owners
1. Capital paid in by
owners
2. Amounts of
share-based payments
recognized in owners’ equity
3. Others 18.59 18.59 137.00 137.00
(IV) Profit distribution -248,716, -248,716, 54,010,95 -302,727, -248,716,
200.00 200.00 6.51 156.51 200.00
1. Appropriations to 54,010,95 -54,010,9
surplus reserves 6.51 56.51
2. Appropriations to
general risk provisions
3. Appropriations to -248,716, -248,716, -248,716, -248,716,
owners (or shareholders) 200.00 200.00 200.00 200.00
4. Other
(V) Internal carry-forward
of owners’ equity
1. New increase of
capital (or share capital) from
capital public reserves
2. New increase of
capital (or share capital) from
surplus reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the
period
2. Used in the period
(Ⅶ) Other
994,864,8 1,129,442 428,440,4 1,780,419 4,333,167 994,864,8 1,127,872 428,440,4 1,415,576 3,966,753
IV. Closing balance
00.00 ,356.86 85.70 ,946.26 ,588.82 00.00 ,338.27 85.70 ,151.29 ,775.26
7.3 Notes to the financial statements
7.3.1 Should there be any changes in accounting policies, accounting estimates and
accounting errors, give the relevant contents, reasons and the influenced amounts.
□Applicable √Inapplicable
7.3.2 Significant changes in the consolidation scope for the reporting period, as well
as reasons and influenced amounts
□Applicable √Inapplicable
7.3.3 If a non-standard auditor’s report is issued, list notes to the relevant matters.
□Applicable √Inapplicable