LU THAI TEXTILE CO., LTD.
THE THIRD QUARTERLY REPORT FOR 2011
§1 Important Notice
1.1 The Board of Directors, the Supervisory Committee, directors, supervisors and
other senior management personnel of Lu Thai Textile Co., Ltd. (hereinafter referred
to as “the Company”) hereby guarantee that this report carries no false information,
misleading statements or major omissions, and accept, individually and collectively,
the responsibility for the factuality, accuracy and completeness of the information set
forth herein.
1.2 The Financial Report in the third quarterly report has not been audited by a CPA
firm.
1.3 Mr. Liu Shizhen, Principal of the Company, Ms. Zhang Hongmei, person in
charge of accounting work and accounting organ (Financial Manager) hereby
confirmed that the Financial Report enclosed in the third quarterly report is true and
complete.
§2 Company Profile
2.1 Main accounting data and financial indexes
Unit: RMB Yuan
As at 30 Sept. 2011 As at 31 Dec. 2010 Increase/decrease (%)
Total assets (Yuan) 7,573,814,630.79 7,015,883,263.33 7.95%
Owners’ equity attributable to shareholders of
4,948,303,645.55 4,404,133,413.47 12.36%
listed company (Yuan)
Share capital (Share) 1,008,954,800.00 994,864,800.00 1.42%
Net assets per share attributable to
4.90 4.43 10.61%
shareholders of listed company (Yuan /share)
Increase/decrease Increase/decrease
Jul.-Sept. 2011 Jan.-Sept. 2011
year-on-year (%) year-on-year (%)
Total operation income (Yuan) 1,483,566,032.99 8.52% 4,464,379,130.19 23.53%
Net profit attributable to shareholders of listed
225,012,704.00 8.93% 716,659,769.96 24.98%
company (Yuan)
Net cash flows generated from operating
- - 912,386,476.86 18.67%
activities (Yuan)
Net cash flows per share generated from
- - 0.90 18.67%
operating activities (Yuan /share)
Basic earnings per share (Yuan /share) 0.23 9.52% 0.72 24.14%
Diluted earnings per share (Yuan /share) 0.23 9.52% 0.72 24.14%
Weighted average return on net assets (%) 4.69% -0.30% 15.33% 1.27%
Weighted average return on net assets after
4.39% 0.14% 14.70% 1.85%
deducting extraordinary gains and losses (%)
Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Note（If
Items of non-recurring gains and losses Amount
applicable）
Gains and losses from disposal of non-current assets -8,942,648.27
Government subsidies recorded into current gains and losses, excluding those related
closely to the routine business of the Company and continuously enjoyed by the Company 14,012,541.52
at fixed amounts or ratios according to state policies and regulations
Gains and losses on change in fair value from tradable financial assets and tradable
financial liabilities, as well as investment income from disposal of tradable financial assets
36,615,036.05
and tradable financial liabilities and financial assets available for sales except for effective
hedging related with normal businesses of the Company
Other non-operating incomes and expenses besides the above each item mentioned 1,323,029.51
Effect on income tax -10,445,871.89
Effect on minority interest -3,116,778.56
1
Total 29,445,308.36 -
2.2 Total number of shareholders and shareholding of top ten shareholders holding
tradable shares
Unit: share
Total number of shareholders at the period-end 117,122
Shareholding of top ten shareholders holding tradable shares
Number of tradable shares held at
Full name of shareholder Type of share
period-end
ZIBO LUCHENG TEXTILE INVESTMENT CO., LTD 123,314,700 RMB ordinary shares
Domestically listed foreign
DBS VICKERS (HONG KONG) LTD A/C CLIENTS 40,628,642
shares
GF Domestic Demand Growth and Dynamic Asset
10,079,962 RMB ordinary shares
Allocation Mixed Type Fund
GF Small-Cap Growth Stock Fund 8,474,408 RMB ordinary shares
E FUND VALUE GROWTH MIXED FUND 7,999,970 RMB ordinary shares
Domestically listed foreign
AVIVA INVESTORS 6,811,596
shares
GF Large-Cap Growth Mixed Type Fund 5,099,881 RMB ordinary shares
Domestically listed foreign
First Shanhai Securities Ltd. 4,397,541
shares
Domestically listed foreign
MIRAE ASSET GLOBAL DISCOVERY FUND 3,826,850
shares
ORIENT RED NO.2 PLAN ON MANAGEMENT OF
3,457,100 RMB ordinary shares
COLLECTED ASSETS
§3 Significant Events
3.1 Particular about large-margin change of main accounting statement item and
financial index and its reason
√Applicable □Inapplicable
Reasons for significant movements of the items in the financial statements:
1. Monetary funds as at 30 Sept. 2011 were RMB 995,738,991.09, up 64.81% from
the amount as at the year-begin, which was mainly because some new short-term
borrowings were obtained and had not been used up by the period-end.
2. Transactional financial assets as at 30 Sept. 2011 were RMB 21,135,640.00, down
47.71% from the amount as at the year-begin, which was mainly due to the fair value
changes in the actual delivery of derivative financial assets in the current period.
3. Prepayments as at 30 Sept. 2011 were RMB 192,303,948.70, down 50.41% from
the amount as at the year-begin, which was mainly because the prepayments made in
the same period of last year for goods purchases were settled in the current period.
4. Interest receivable as at 30 Sept. 2011 was RMB 0.00, down RMB 1,568,105.85
from the amount as at the year-begin, which was mainly because the interest
receivable from banks on mature guarantee deposits were collected.
5. Construction in process as at 30 Sept. 2011 was RMB 220,378,419.30, up 231.70%
from the amount as at the year-begin, which was mainly due to more inputs to
construction projects in the current period.
6. Engineering materials as at 30 Sept. 2011 were RMB 32,712,082.39, up 2709.88%
from the amount as at the year-begin, which was mainly because more equipments
were bought in and installed.
7. Notes payable as at 30 Sept. 2011 were RMB 16,413,706.03, down 79.12% from
the amount as at the year-begin, which was mainly because notes payable were
cleared upon maturity.
8. Accounts payable as at 30 Sept. 2011 were RMB 241,192,199.62, down 48.63%
from the amount as at the year-begin, which was mainly because the accounts payable
in the same period of last year by the subsidiary Xinjiang Lu Thai to cotton growers
2
for seed cotton were cleared in the current period.
9. Taxes and fares payable as at 30 Sept. 2011 were RMB 53,868,537.43, up 520.62%
from the amount as at the year-begin, which was mainly because the overpaid VAT
decreased and the corporate income tax payable increased.
10. Interest payable as at 30 Sept. 2011 was RMB 3,306,452.64, down 31.19% from
the amount as at the year-begin, which was mainly because the interest payable was
cleared upon maturity.
11. Dividend payable as at 30 Sept. 2011 was RMB 442,309.44, down 86.43% from
the amount as at the year-begin, which was mainly because the subsidiary Beijing
Sichuang paid dividends to minority shareholders.
12. Non-current liabilities due within one year as at 30 Sept. 2011 were RMB
95,926,380.00, up 38.29% from the amount as at the year-begin, which was mainly
because more long-term borrowings became non-current liabilities due within one
year.
13. Long-term borrowings as at 30 Sept. 2011 were RMB 20,000,000.00, down
76.84% from the amount as at the year-begin, which was mainly because some
long-term borrowings became due within one year.
14. Deferred income tax liabilities as at 30 Sept. 2011 were RMB 5,852,894.96, down
34.30% from the amount as at the year-begin, which was mainly because transactional
financial assets decreased and the corresponding deferred income tax liabilities also
decreased.
15. Business tax and surtaxes for Jan.-Sept. 2011 were RMB 27,603,473.30, up
1754.48% over the same period of last year, which was mainly because the city
maintenance tax and the educational surcharge increased.
16. Administration expense for Jan.-Sept. 2011 was RMB 457,468,203.51, up 34.50%
over the same period of last year, which was mainly because the employees’ wages
and the R&D expenditure increased.
17. Asset impairment loss for Jan.-Sept. 2011 was RMB 1,523,022.06, down 96.01%
over the same period of last year, which was mainly because the impairment provision
for fixed assets decreased.
18. Gains on fair value changes for Jan.-Sept. 2011 were RMB -18,733,931.72, down
122.03% over the same period of last year, which was mainly because some
transactional financial assets were settled upon maturity and the corresponding gains
on fair value changes previously recognized were carried forward.
19. Investment gains for Jan.-Sept. 2011 were RMB 55,348,967.77, up 199.22% over
the same period of last year, which was mainly because the investment gains on
transactional financial assets (liabilities) increased.
20. Non-business income for Jan.-Sept. 2011 was RMB 21,676,511.86, down 39.37%
over the same period of last year, which was mainly because governmental subsidies
decreased.
21. Non-business expense for Jan.-Sept. 2011 was RMB 14,733,777.72, up 143.65%
over the same period of last year, which was mainly because losses on disposing fixed
assets increased.
22. Income tax expense for Jan.-Sept. 2011 was RMB 148,134,647.59, up 35.42%
over the same period of last year, which was mainly because the total profit increased
and the income tax expense increased accordingly.
3.2 Progress and influence of significant events, as well as the analysis on solutions
3.2.1 Non-standard audit opinion
□Applicable √Inapplicable
3
3.2.2 Whether the Company provided funds to the controlling shareholder or its
related parties or provided guarantees to external parties in violation of the prescribed
procedures
□Applicable √Inapplicable
3.2.3 Signing and execution of significant contracts concerning routine operations
□Applicable √Inapplicable
3.2.4 Others
□Applicable √Inapplicable
3.3 Fulfillment of commitments made by the Company, shareholders and the actual
controller
Commitments made by the Company, its directors, supervisors, senior executives,
shareholders with an over 5% shareholding, actual controller and other stakeholders
during the reporting period, or such commitments carried down into the reporting
period:
√Applicable □Inapplicable
Commitment
Commitment Contents of the commitment Execution
maker
Zibo Lucheng will not reduce its
shareholding within 60 months
after share merger reform and,
within 24 months after that, the Zibo Lucheng Textile
price of selling holding shares Investment Co., Ltd. has
shall not be lower than RMB 15 fulfilled its commitment to
per share (if the share capital increase its shareholding in the
changes, ex-rights will be Company with dividends
conducted); it proposed and received from the Company in
voted for a cash distribution not 2005 and 2006. And the total
lower than 50% of the profit profit for 2008 increased
available for distribution in the 58.06% as compared to 2005. As
Zibo Lucheng
year at the 2006 Shareholders’ at 12 Jun. 2011, the period of
Commitments made in share Textile
reforms
General Meeting and 2007 trading moratorium on the
Investment
Shareholders’ General Meeting; 98,358,000 shares held by Zibo
Co., Ltd.
it will increase the LUTHAI A Lucheng Textile Investment Co.,
shares held by it through trading Ltd. became due, and those
at the secondary market with the shares have been released for
dividends received in 2005 and trading since 24 Jun. 2011.
2006, and the increase of the The committed term (24
LUTHAI A shares held shall be months) after the expiration
accomplished within 12 months ranges from 24 Jun. 2011 to 24
after the dividend is transferred Jun. 2013.
to its account. In 2008, the total
profit shall increase by not less
than 30% compared with that in
2005.
Commitments made in
acquisition reports or N/A N/A N/A
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
Lu Thai Fine Combed Yarns, the
Commitments made in Investment projects with raised
Textile Co., 50-thousand Ingot Two-for-one
share issuance funds
Ltd. Twisting Production Line
Project, the Project for
Supplementing Working Capital
4
and the Project of
10-million-meter 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 by the
Company. On 18 Oct. 2011, the
Third Special Shareholders
General Meeting reviewed and
approved the Proposal on
Investing RMB 0.14 billion of
raised funds to the Project of
Newly Added 40-million-meter
Top-grade Yarn Dyed Fabric
Production Line
Other commitments
(including supplementary N/A N/A N/A
ones)
3.4 Warnings of possible losses or major changes of the accumulative net profit
achieved during the period from year-begin to the end of the next reporting period
compared with the same period of last year, as well as explanation on reasons
□Applicable √Inapplicable
3.5 Other significant events that need to be explained
3.5.1 Investments into securities
□Applicable √Inapplicable
3.5.2 Researches, interviews and visits received in reporting period
Main discussion and materials
Reception time Reception place Reception way Visitor
provided
Reception room of Franklin Templeton Sealand Fund
6 Sept. 2011 Field research Basic information of the Company
the Company Management Co., Ltd.
Reception room of
9 Sept. 2011 Field research SINOLINK SECURITIES CO., LTD. Basic information of the Company
the Company
Reception room of
9 Sept. 2011 Field research HongYuan Securities Co., Ltd Basic information of the Company
the Company
Reception room of
22 Sept. 2011 Field research Tebon Securities Co. Ltd. Basic information of the Company
the Company
Reception room of
22 Sept. 2011 Field research Ivy Asset Management LLC Basic information of the Company
the Company
Reception room of
22 Sept. 2011 Field research Fullgoal Fund Management Co., Ltd. Basic information of the Company
the Company
Reception room of Guangdong New Value Investment
22 Sept. 2011 Field research Basic information of the Company
the Company Co., Ltd.
Reception room of
22 Sept. 2011 Field research China Securities Co., Ltd. Basic information of the Company
the Company
Reception room of
22 Sept. 2011 Field research Haitong Securities Co., Ltd Basic information of the Company
the Company
3.6 Investments into derivatives
√Applicable □Inapplicable
The Company conducted derivatives products transaction in order for hedging. And
Analysis on risks and control
the forward settlement hedging was operated by installments, with the relevant amount
measures of derivative products
not more than the planned derivatives products transactions. And all derivatives
held in the reporting period
products transaction was zero-deposit. Meanwhile, the Company had a complete risk
(including but not limited to
control system for sufficient analysis and prevention of possible risks such as risk of
market risk, liquidity risk, credit
laws and regulations, credit risk, operation risk and market risk.
risk, operation risk, law risk,
1. Risk of laws and regulations
etc.)
When conducting hedging business, the Company must abide by relevant laws,
5
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 exchange tendency after such contract of forward settlement of exchange
falls due, no default risk exists in the Company so as to ensure delivery on schedule or
extension.
Precaution measure: 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 Eight Session of the Six Board of Directors 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
Forward settlement business is the most important transaction for the Company with
large amount and relative long term. 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, on the basis of its normal operation, the Company used its own funds to
conduct forward settlement and purchase business, which could help the Company
avoid the risk of RMB 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.
1. Up to 30 Sept. 2011, the undue financial derivative product contracts held by the
Company were as follows: 20 US dollar forward settlement contracts valuing US$ 257
Changes of market prices or fair million and 1 US dollar exchange rate swaps contract valuing US$ 13.1 million as
values in the reporting period of well as 3 Swiss Franc forward purchase contracts valuing CHF 2.8 million. The three
the invested derivatives. And the said kinds of financial derivative products accounted for 37.27 % of the closing net
analysis on the fair value of the assets of the Company.
derivatives should include the 2. For Jan. to Sept. 2011, the due financial derivative products of the Company totally
specific use methods and the equaled to US$ 435,617,400, of which US$ 435,617,400 was actually delivered and
relevant assumptions and the gain generated was RMB 55,349,000. The due forward settlement was US$ 419
parameters. million, of which US$ 419 million was delivered as scheduled, generating gain of
RMB 58,556,100; The due forward purchase was US$ 16,617,400, of which US$
16,617,400 was delivered as scheduled, causing loss of RMB 3,207,100.
Whether significant changes
occurred to the Company’s
accounting policy and specific
accounting principles of Unchanged
derivatives in the reporting
period compared to the previous
reporting period
Specific opinion from Concerning the Company’s derivative transactions, the Company’s independent
independent directors on the directors Zhou Zhiji, Qi Haodong, Bi Xiuli, Wang Lei and Hong Xiaobin issued their
6
Company’s derivatives professional opinions as follows:
investment and risk control 1. Up to 30 Sept. 2011, the undue financial derivative product contracts held by the
Company were as follows: 20 US dollar forward settlement contracts valuing US$ 257
million and 1 US dollar exchange rate swaps contract valuing US$ 13.1 million as
well as 3 Swiss Franc forward purchase contracts valuing CHF 2.8 million. The three
said kinds of financial derivative products accounted for 37.27 % of the closing net
assets of the Company.
2. For Jan. to Sept. 2011, the due financial derivative products of the Company totally
equaled to US$ 435,617,400, of which US$ 435,617,400 was actually delivered and
the gain generated was RMB 55,349,000. The due forward settlement was US$ 419
million, of which US$ 419 million was delivered as scheduled, generating gain of
RMB 58,556,100; The due forward purchase was US$ 16,617,400, of which US$
16,617,400 was delivered as scheduled, causing loss of RMB 3,207,100.
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 Eight Session of the Six Board of Directors for 2011.
4. The Company has formulated and improved the organizational structure, business
operation flow chart, approval flow chart and other internal control rules for forward
settlement and purchase business, which are executed effectively.
5. On the basis of its normal operation, the Company used its own funds to conduct
forward settlement and purchase business, which could help the Company avoid the
risk of RMB 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 forward settlement and purchase
business in strict compliance with relevant laws, regulations, the Company’s Articles
of Association and the Company’s Management Rules for Derivative Transactions, the
operation was legal and compliant.
7. In accordance with relevant stipulations, the Company performed the relevant
information disclosure duty for derivative transactions in its report for the third 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 business 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 forward settlement and purchase business, the relevant risks were
controllable, and no harm was done to interests of the Company’s shareholders.
3.6.1 Positions of derivatives investments held at the period-end
√Applicable □Inapplicable
Unit: RMB Yuan
Proportion of the closing
Opening contract Closing contract Gains/losses in contract amount in the
Type of contract
amount amount reporting period Company’s closing net
assets
Contracts for forward settlement of
exchange, contracts for the forward 1,845,992,324.62 1,843,987,820.00 55,348,967.77 37.27%
purchase of exchange
Total 1,845,992,324.62 1,843,987,820.00 55,348,967.77 37.27%
§4 Attachments
4.1 Balance sheet
Prepared by Lu Thai Textile Co., Ltd. 30 Sept. 2011 Unit: RMB Yuan
Balance as at 30 Sept. 2011 Balance as at 31 Dec. 2010
Items
Consolidation The Company Consolidation The Company
Current assets:
7
Monetary funds 995,738,991.09 726,820,167.04 604,175,236.37 361,992,869.89
Settlement funds
Outgoing call loans
Transaction financial asset 21,135,640.00 15,650,840.00 40,418,200.00 34,232,000.00
Notes receivable 129,905,062.48 102,995,903.29 137,384,889.66 110,798,047.01
Account receivable 195,432,049.75 225,003,460.52 155,354,359.04 199,861,650.50
Prepayment 192,303,948.70 279,277,785.75 387,788,595.85 532,649,958.83
Insurance premium receivables
Reinsurance accounts
receivable
Reinsurance contract reserve
receivables
Interest receivable 1,568,105.85 1,568,105.85
Dividend receivable 757,735.18 4,957,735.18
Other accounts receivable 54,419,049.22 17,576,005.85 74,903,936.45 29,173,351.08
Financial assets purchased
under agreements to resell
Inventories 1,757,331,984.67 1,291,231,762.90 1,466,286,582.16 818,532,240.13
Non-current assets due within 1
year
Other current assets
Total current assets 3,346,266,725.91 2,659,313,660.53 2,867,879,905.38 2,093,765,958.47
Non-current assets:
Loan and payment on other’s
behalf disbursed
Available for sale financial
assets
Held to maturity investments
Long-term account receivable
Long-term equity investment 68,942,600.00 1,063,495,189.90 68,942,600.00 894,295,189.90
Investment property
Fixed asset 3,516,280,490.06 2,244,306,906.82 3,644,240,059.73 2,225,236,167.82
Project in process 220,378,419.30 81,812,117.21 66,439,271.92 34,661,741.56
Engineering material 32,712,082.39 31,529,340.45 1,164,182.23 1,164,182.23
Fixed asset disposal
Production biological asset
Oil-gas assets
Intangible assets 311,491,030.20 178,265,551.79 293,314,520.77 163,305,988.78
Development expense
Goodwill 20,563,803.29 20,563,803.29
Long-term deferred expense
Deferred tax assets 57,179,479.64 26,165,161.86 53,338,920.01 26,495,459.57
Other non-current assets
Total non-current assets 4,227,547,904.88 3,625,574,268.03 4,148,003,357.95 3,345,158,729.86
Total assets 7,573,814,630.79 6,284,887,928.56 7,015,883,263.33 5,438,924,688.33
Current liabilities:
Short-term borrowings 1,070,351,236.22 896,286,536.22 869,557,204.66 639,536,604.66
Borrowing from central Bank
8
Deposits received and held for
others
Call loan received
Transaction financial liabilities 1,402,085.00 672,860.00 1,950,713.28 1,950,713.28
Notes payable 16,413,706.03 14,158,824.03 78,598,872.76 95,746,948.58
Account payable 241,192,199.62 164,042,241.42 469,527,076.77 180,827,824.08
Account received in advance 125,843,594.99 51,591,604.59 147,284,467.21 38,437,023.40
Financial assets sold under
agreements to repurchase
Handling charges and
commission payable
Payroll payable 375,808,021.28 337,694,752.00 331,045,622.56 289,512,883.21
Taxes payable 53,868,537.43 49,586,924.72 -12,806,832.19 15,139,752.22
Interest payable 3,306,452.64 3,306,452.64 4,805,148.11 4,805,148.11
Dividend payable 442,309.44 442,309.44 3,259,512.84 442,309.44
Other payables 161,234,051.85 38,127,326.64 138,264,754.93 12,940,429.46
Account due to reinsurance
Insurance contract reserve
Entrusted trading of securities
Entrusted selling of securities
Non-current liabilities due
95,926,380.00 95,926,380.00 69,364,725.00 69,364,725.00
within 1 year
Other current liabilities
Total current liabilities 2,145,788,574.50 1,651,836,211.70 2,100,851,265.93 1,348,704,361.44
Non-current liabilities:
Long-term borrowings 20,000,000.00 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 taxes liabilities 5,852,894.96 2,347,626.00 8,908,329.73 5,134,800.00
Other non-current liabilities 68,613,612.78 32,663,686.60 68,422,326.66 31,963,066.63
Total non-current liabilities 104,202,067.74 35,011,312.60 173,434,901.39 123,466,551.63
Total liabilities 2,249,990,642.24 1,686,847,524.30 2,274,286,167.32 1,472,170,913.07
Owner’s equity (or shareholders’
equity):
Paid-in capital (or share capital) 1,008,954,800.00 1,008,954,800.00 994,864,800.00 994,864,800.00
Capital reserve 1,193,949,711.35 1,191,378,840.03 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
General risk provision
Retained earnings 2,322,776,739.59 1,969,266,278.53 1,854,833,169.63 1,415,576,151.29
Foreign exchange difference -5,818,091.09 -4,447,846.98
Total equity attributable to owners
4,948,303,645.55 4,598,040,404.26 4,404,133,413.47 3,966,753,775.26
of the Company
Minority interest 375,520,343.00 337,463,682.54
Total owner’s equity 5,323,823,988.55 4,598,040,404.26 4,741,597,096.01 3,966,753,775.26
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Total liabilities and owner’s
7,573,814,630.79 6,284,887,928.56 7,015,883,263.33 5,438,924,688.33
equity
4.2 Income Statement for Jul.-Sept. 2011
Prepared by Lu Thai Textile Co., Ltd. Jul. – Sept. 2011 Unit: RMB Yuan
Jul.-Sept. 2011 Jul -Sept. 2010
Items
Consolidation The Company Consolidation The Company
I. Total operating revenue 1,483,566,032.99 1,253,073,223.08 1,367,077,728.87 1,025,261,030.99
Including: operating revenue 1,483,566,032.99 1,253,073,223.08 1,367,077,728.87 1,025,261,030.99
II. Total operating cost 1,230,292,674.90 1,046,924,808.34 1,129,514,687.73 867,860,019.72
Including: operating cost 1,012,327,690.00 895,692,345.48 939,686,190.29 732,073,579.94
Business tax and surcharges 17,419,527.01 14,410,854.40 495,193.81
Selling and distribution
37,155,185.35 16,665,839.07 32,481,735.83 12,431,262.10
expenses
Administrative expenses 154,597,082.53 121,480,380.13 115,334,865.08 90,387,644.01
Financial expenses 10,467,508.48 644,912.97 10,922,311.21 6,151,903.45
Asset impairment loss -1,674,318.47 -1,969,523.71 30,594,391.51 26,815,630.22
Add: Gain/(loss) from change in fair
1,895,055.00 850,380.00 37,679,499.12 33,386,249.12
value
Gain/(loss) from investment 14,879,900.00 12,853,400.00 -16,308,800.00 -15,427,300.00
Including: income form
investment on affiliated enterprises
and jointly-run enterprises
Foreign exchange difference
III. Business profit 270,048,313.09 219,852,194.74 258,933,740.26 175,359,960.39
Add: non-operation income 5,543,864.18 4,758,424.40 11,367,069.39 10,468,398.88
Less: non-business expense 3,463,627.25 2,260,338.38 1,482,445.49 868,068.48
Including: loss on disposal of
1,039,001.06 31,446.80 846,946.37 806,793.36
non-current asset
IV. Total profit 272,128,550.02 222,350,280.76 268,818,364.16 184,960,290.79
Less: Income tax expense 45,355,704.85 33,503,948.49 38,521,628.29 28,506,855.07
V. Net profit 226,772,845.17 188,846,332.27 230,296,735.87 156,453,435.72
Attributable to owners of the
225,012,704.00 188,846,332.27 206,560,238.17 156,453,435.72
Company
Minority interests 1,760,141.17 23,736,497.70
VI. Earnings per share
(I) basic earnings per share 0.23 0.19 0.21 0.16
(II) diluted earnings per share 0.23 0.19 0.21 0.16
Ⅶ. Other comprehensive income -654,686.42 -79,538.96
Ⅷ. Total comprehensive income 226,118,158.75 188,846,332.27 230,217,196.91 156,453,435.72
Attributable to owners of the
224,358,017.58 188,846,332.27 206,480,699.21 156,453,435.72
Company
Attributable to minority
1,760,141.17 23,736,497.70
shareholders
Where there were business combinations under the same control in this reporting
period, the combined parties achieved net profit of RMB 0.00 before the
combinations.
4.3 Income statement for Jan.-Sept. 2011
Prepared by Lu Thai Textile Co., Ltd. Jan. - Sept. 2011 Unit: RMB Yuan
10
Jan.-Sept. 2011 Jan.-Sep. 2010
Items
Consolidation The Company Consolidation The Company
I. Total operating revenue 4,464,379,130.19 3,699,110,303.48 3,613,928,645.73 2,777,252,985.11
Including: operating revenue 4,464,379,130.19 3,699,110,303.48 3,613,928,645.73 2,777,252,985.11
II. Total operating cost 3,607,886,092.01 2,979,461,417.98 2,940,688,546.25 2,308,608,322.40
Including: operating cost 2,979,098,155.74 2,554,814,764.34 2,427,063,035.68 1,967,909,272.27
Interests expenses
Business tax and surcharges 27,603,473.30 21,427,438.98 1,488,478.83
Selling and distribution
106,805,780.83 41,192,622.84 101,200,852.09 36,633,232.58
expenses
Administrative expenses 457,468,203.51 355,585,477.43 340,123,940.30 261,206,357.13
Financial expenses 35,387,456.57 4,607,584.62 32,613,756.25 15,643,483.25
Asset impairment loss 1,523,022.06 1,833,529.77 38,198,483.10 27,215,977.17
Add: Gain/(loss) from change in fair
-18,733,931.72 -17,303,306.72 85,049,525.60 70,281,225.60
value
Gain/(loss) from investment 55,348,967.77 211,443,467.77 -55,783,816.14 -65,206,748.79
Including: income form
investment on affiliated enterprises
and jointly-run enterprises
Foreign exchange difference
(“-” means loss)
III. Business profit 893,108,074.23 913,789,046.55 702,505,808.94 473,719,139.52
Add: non-operation income 21,676,511.86 9,125,918.66 35,752,926.00 20,272,612.44
Less: non-business expense 14,733,777.72 10,860,526.73 6,047,003.12 4,047,347.33
Including: loss on disposal of
9,249,096.93 5,801,925.69 3,390,069.57 2,721,958.55
non-current asset
IV. Total profit 900,050,808.37 912,054,438.48 732,211,731.82 489,944,404.63
Less: Income tax expense 148,134,647.59 109,648,111.24 109,386,218.58 76,720,120.14
V. Net profit 751,916,160.78 802,406,327.24 622,825,513.24 413,224,284.49
Attributable to owners of the
716,659,769.96 802,406,327.24 573,438,189.54 413,224,284.49
Company
Minority interests 35,256,390.82 49,387,323.70
VI. Earnings per share
(I) basic earnings per share 0.72 0.81 0.58 0.42
(II) diluted earnings per share 0.72 0.81 0.58 0.42
Ⅶ. Other comprehensive income 199,755.89 1,570,000.00 -4,837,992.62 2,350,000.00
Ⅷ. Total comprehensive income 752,115,916.67 803,976,327.24 617,987,520.62 415,574,284.49
Attributable to owners of the
716,859,525.85 803,976,327.24 568,600,196.92 415,574,284.49
Company
Attributable to minority
35,256,390.82 49,387,323.70
shareholders
Where there were business combinations under the same control from the year-begin
to the period-end, the combined parties achieved net profit of RMB 0.00 before the
combinations.
4.4 Cash flow statement for Jan.-Sept. 2011
Prepared by Lu Thai Textile Co., Ltd. Jan. - Sept. 2011 Unit: RMB Yuan
Jan.-Sept. 2011 Jan.-Sept. 2010
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating activities
Cash received from sales of goods or
4,481,585,423.26 3,658,909,852.77 3,832,564,891.60 2,882,332,436.83
rendering of services
Taxes and fare refund 193,331,421.72 145,528,035.36 123,133,710.28 87,582,602.67
Other cash received from operating
63,060,906.00 35,644,777.16 95,324,287.72 64,285,394.41
activities
Sub-total of cash inflow 4,737,977,750.98 3,840,082,665.29 4,051,022,889.60 3,034,200,433.91
Cash paid for goods and services 2,683,764,197.49 2,319,678,241.68 2,420,390,790.38 1,908,716,690.34
Cash paid to and for employees 729,048,411.27 576,809,098.53 565,493,728.53 453,742,976.12
Cash paid for various taxes 222,115,998.92 130,202,880.89 126,077,108.80 65,872,696.76
Other cash paid relating to operating
190,662,666.44 103,351,891.51 170,228,071.08 110,369,433.72
activities
Sub-total of cash outflows 3,825,591,274.12 3,130,042,112.61 3,282,189,698.79 2,538,701,796.94
Net cash outflow in operating activities 912,386,476.86 710,040,552.68 768,833,190.81 495,498,636.97
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II. Cash Flows from investing activities
Cash received from investment
retractions
Cash received from investment income
Net cash received from disposal of fixed
assets, intangible assets and other long-term 2,083,765.33 2,076,735.72 3,042,446.14 2,924,946.14
assets
Net cash received from disposal of
subsidiaries and other operating units
Other cash received relating to investing
60,001,566.53 50,621,898.51 1,983,939.22 1,306,329.98
activities
Sub-total of cash inflows of investing
62,085,331.86 52,698,634.23 5,026,385.36 4,231,276.12
activities
Cash paid for acquisition of fixed assets,
354,126,661.31 165,265,464.41 434,295,902.55 325,163,900.98
intangible assets and other long-term assets
Cash paid for acquisition of investments 13,500,000.00 28,724,366.73
Net increase of pledge loans
Net cash paid for acquisition of
subsidiaries and other operating units
Other cash paid relating to investing
65,657,054.22 53,836,921.02
activities
Sub-total of cash outflows of investing
354,126,661.31 165,265,464.41 513,452,956.77 407,725,188.73
activities
Net cash flows from investing activities -292,041,329.45 -112,566,830.18 -508,426,571.41 -403,493,912.61
III. Cash flows from financing activities:
Cash received from investment 70,802,250.00 70,802,250.00 10,679,050.43
Including: cash received by subsidiaries
from minority shareholders
Cash received as borrowings 1,121,885,167.43 635,421,850.55 727,828,446.63 568,135,466.63
Cash received from bonds issuing
Other cash received relating to financing
107,790,000.00 82,790,000.00 33,600,000.00
activities
Sub-total of cash inflows of financing
1,300,477,417.43 789,014,100.55 772,107,497.06 568,135,466.63
activities
Cash paid for repayment of borrowings 1,142,503,972.99 673,671,836.31 699,573,924.66 329,573,924.66
Cash paid for dividends, profit
282,390,869.34 267,046,504.87 274,850,698.47 255,572,649.57
distribution or interest
Including: dividends or profits paid to
minority shareholders by subsidiaries
Other cash paid relating to financing
20,460,000.00 10,000,000.00
activities
Sub-total of cash outflows of financing
1,445,354,842.33 940,718,341.18 984,424,623.13 585,146,574.23
activities
Net cash flows from financing
-144,877,424.90 -151,704,240.63 -212,317,126.07 -17,011,107.60
activities
IV. Effect of foreign exchange rate on cash
-2,683,967.79 277,815.28 -2,500,862.91 -1,958,480.56
and cash equivalents
V. Net decrease in cash and cash equivalents 472,783,754.72 446,047,297.15 45,588,630.42 73,035,136.20
Add : Opening amount of cash and cash
522,955,236.37 280,772,869.89 569,968,526.84 324,783,025.04
equivalents
VI. Closing balance of cash and cash
995,738,991.09 726,820,167.04 615,557,157.26 397,818,161.24
equivalents
4.5 Auditor’s report
Audit opinion: Un-audited
12
