Lu Thai Textile Co., Ltd.
Report for the First Quarter of 2012
§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 2012 have not been audited by an
accounting firm.
1.3 Liu Shizhen, the company principal, and Zhang Hongmei, the principal of the
accounting work, as well as Zhang Keming, 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. 2012 31 Dec. 2011 Increase/decrease (%)
Total assets (Yuan) 7,567,541,316.06 7,751,885,340.43 -2.38%
Owners’ equity attributable to shareholders of the
5,216,962,512.77 5,086,100,453.10 2.57%
Company (Yuan)
Total share capital (share) 1,008,954,800.00 1,008,954,800.00 0.00%
Net assets per share attributable to shareholders of the
5.17 5.04 2.58%
Company (Yuan/share)
Jan.-Mar. 2012 Jan.-Mar. 2011 Increase/decrease (%)
Gross revenue (Yuan) 1,320,451,250.50 1,412,599,864.78 -6.52%
Net profit attributable to shareholders of the Company
115,194,435.22 207,753,038.55 -44.55%
(Yuan)
Net cash flows from operating activities (Yuan) 99,375,806.73 59,816,094.26 66.14%
Net cash flows per share from operating activities
0.10 0.06 66.67%
(Yuan/share)
Basic EPS (Yuan/share) 0.11 0.21 -47.62%
Diluted EPS (Yuan/share) 0.11 0.21 -47.62%
Weighted average ROA (%) 2.24% 4.61% -2.37%
Weighted average ROA after deducting non-recurring
2.06% 4.57% -2.51%
gains and losses (%)
Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Amount from 1 Jan. 2012 to
Items of non-recurring gains and losses Notes (if applicable)
31 Mar. 2012
Gains and losses from disposal of non-current assets 141,491.31
Government subsidies recorded into current gains and losses, excluding those
related closely to the routine business of the Company and continuously enjoyed by 7,548,062.96
the Company at fixed amounts or ratios according to state policies and regulations
Gains/losses from fair value changes of transactional financial assets and liabilities
held by the Company, and investment gains from disposal of transactional financial
3,768,530.93
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 1,248,747.02
Income tax effects -3,420,964.54
Minority interests effects -143,067.97
1
Total 9,142,799.71 -
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 the reporting
115,318
period
Shares held by the top ten shareholders not subject to trading moratorium
Shares not subject to trading
Full name of shareholder moratorium held at the Type of share
period-end
Zibo Lucheng Textile Investment Co., Ltd. 123,314,700 RMB ordinary shares
DBS VICKERS (HONG KONG) LTD A/C CLIENTS 40,528,642 Domestically listed foreign shares
China Post Core Selected Stock Fund 7,843,578 RMB ordinary shares
AVIVA INVESTORS 5,824,228 Domestically listed foreign shares
First Shanghai Securities Limited 5,567,095 Domestically listed foreign shares
China Post Core Growth Stock Fund 4,661,608 RMB ordinary shares
GF Domestic Demand Growth and Dynamic Asset
3,953,319 RMB ordinary shares
Allocation Mixed Type Fund
AVIVA LIFE AND PENSIONS UK LIMITED 3,930,923 Domestically listed foreign shares
Central China Securities—Yanhuang No. 1 Selected Fund
3,780,000 RMB ordinary shares
Collection Asset Management Plan
ChinaAMC Income Fund 3,639,157 RMB ordinary shares
§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) Monetary funds stood at RMB 546,900,286.83 as at 31 Mar. 2012, down 32.58%
over the opening amount, which was mainly because mature bank loans were repaid
and the Company paid for unginned cotton.
(2) Transactional financial assets stood at RMB 11,288,092.00 as at 31 Mar. 2012,
down 46.09% over the opening amount, which was mainly because some
transactional financial assets were settled upon maturity and fair value decreased
accordingly.
(3) Prepayments stood at RMB 165,494,156.05 as at 31 Mar. 2012, down 45.65%
over the opening amount, which was mainly because some prepayments for goods
procurement last year were settled in this period.
(4) Engineering materials stood at RMB 117,959,092.90 as at 31 Mar. 2012, up
196.78% over the opening amount, which was mainly because procurements of
special equipments increased.
(5) Other non-current assets stood at RMB 0 as at 31 Mar. 2012, down 100.00% over
the opening amount, which was mainly because prepayments for land moved into
intangible assets.
(6) Payroll payable stood at RMB 294,536,896.14 as at 31 Mar. 2012, down 32.31%
over the opening amount, which was mainly because bonuses withdrawn in 2011 were
paid in this period.
(7) Taxes and fares payable stood at RMB -61,349,689.91 as at 31 Mar. 2012, down
300.64% over the opening amount, which was mainly because deductible input VAT
payable increased.
(8) Interest payable stood at RMB 1,227,529.52 as at 31 Mar. 2012, down 41.91%
over the opening amount, which was mainly because some interest payable was paid
upon maturity.
(9) Long-term borrowings stood at RMB 0.00 as at 31 Mar. 2012, down 100.00% over
2
the opening amount, which was mainly because some mature long-term borrowings
were repaid.
(10) Business tax and surtaxes stood at RMB 1,276,690.00 as of the reporting period,
down 73.62% over the same period of last year, which was mainly because the city
maintenance tax and the educational surcharges payable decreased.
(11) Financial expense stood at RMB 19,365,581.81 as of the reporting period, up
64.64% over the same period of last year, which was mainly because foreign
exchange income decreased.
(12) Gains on fair value changes stood at RMB -9,651,288.00 as of the reporting
period, up 38.76% over the same period of last year, which was mainly because fair
values of transactional financial assets changed.
(13) Non-operating expense stood at RMB 347,257.62 as of the reporting period,
down 54.39% over the same period of last year, which was mainly because donation
expenses decreased.
(14) Income tax expense stood at RMB 22,563,948.27 as of the reporting period,
down 46.14% over the same period of last year, which was mainly because the taxable
income for this period decreased.
(15) Total profit stood at RMB 139,359,644.30 as of the reporting period, down
47.43% over the same period of last year, which was mainly because affected by a
weak European demand due to the European debt crisis, a slow recovery of the US
economy and rising domestic labor and power costs, the Company saw rising product
costs, as well as falling product prices and gross profit ratios.
(16) Net cash flows from operating activities stood at RMB 99,375,806.73 as of the
reporting period, up 66.14% over the same period of last year, which was mainly
because cash paid for goods and services decreased.
(17) Net cash flows from investing activities stood at RMB -287,664,655.84 as of the
reporting period, down 500.66% over the same period of last year, which was mainly
because the Company increased the input for the 50-million-meter top-grade
piece-dyed fabric project and the 40-million-meter top-grade yarn-dyed fabric
production line project.
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 Textile
Commitments made Zibo Lucheng Textile months after share merger reform and, within 24 months Investment Co., Ltd. has
in share reforms Investment Co., Ltd after that, the price of selling holding shares shall not be fulfilled its commitment to
lower than RMB 15 per share (if the share capital changes, increase its shareholding in the
3
ex-rights will be conducted); it proposed and voted for a Company with dividends
cash distribution not lower than 50% of the profit available received from the Company in
for distribution in the year at the 2006 Shareholders’ 2005 and 2006. And the total
General Meeting and 2007 Shareholders’ General profit for 2008 increased
Meeting; it will increase the LUTHAI A shares held by it 58.06% as compared to 2005.
through trading at the secondary market with the dividends As to 12 Jun. 2011, 98,358,000
received in 2005 and 2006, and the increase of the shares subject to trading
LUTHAI A shares held shall be accomplished within 12 moratorium of Zibo Lucheng
months after the dividend is transferred to its account. In Textile Investment Co., Ltd. was
2008, the total profit shall increase by not less than 30% released, and listed for trading
compared with that in 2005. on 24 Jun. 2011, and now it still
doesn’t reduce the shareholding.
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
10-million-meter Top-grade
Fabrics for Women’s Wear
among the raised capital
investment projects were all
Commitments made Lu Thai Textile Co., completed. And the Project for
Investment projects with raised funds
in share issuance Ltd. Marketing Network and Brand
Development is in
implementation as scheduled by
the Company. The Third Special
Shareholders’ General Meeting
for Y2011 was convened on 18
Oct. 2011, at which reviewed
and approved to use the raised
proceeds of RMB 140 million to
invest on the Production Line
Project for the New Added
40-million Meter Top-grade
Yarn-dyed Fabric.
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
Main discussion and
Way of Type of
Time Place Visitor information provided
reception visitor
by the Company
Room for
Field Instituti Deng Yafeng from Shanghai Chaos Daoran Basic information about
12 Jan. 2012 Visitors of the
research on Asset Management Co., Ltd. the Company
Company
4
Room for
Field Instituti Zhao Bing and Zhao Duo from Sealand Basic information about
12 Jan. 2012 Visitors of the
research on Securities Co., Ltd. the Company
Company
Room for
Field Instituti Wang Bing and Xu Wenfeng from Rising Basic information about
12 Jan. 2012 Visitors of the
research on Securities Co., Ltd. the Company
Company
Room for
Field Instituti Zhou Ying and Huang Ruiqing from Caitong Basic information about
12 Jan. 2012 Visitors of the
research on Fund Management Co., Ltd. the Company
Company
Room for
Field Instituti Dong Lanfeng from Yinhua Fund Management Basic information about
19 Jan. 2012 Visitors of the
research on Co., Ltd. the Company
Company
Room for
Field Instituti Basic information about
2 Feb. 2012 Visitors of the Jin Ge and Liu Bing from CICC
research on the Company
Company
Room for
Field Instituti Yuan Li and Ma Tao from GF Securities Co., Basic information about
15 Feb. 2012 Visitors of the
research on Ltd. the Company
Company
Room for
Field Instituti Shan Huijin from China Asset Management Co., Basic information about
15 Feb. 2012 Visitors of the
research on Ltd. the Company
Company
Room for
Field Instituti Gao Yuanyuan from ICBC Credit Suisse Asset Basic information about
15 Feb. 2012 Visitors of the
research on Management Co., Ltd. the Company
Company
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
The Company conducted derivatives products transaction in strict accordance with relevant laws and
rules as well as regulatory policies from government securities regulatory authorities, if there were no
standard operation procedures and strict approval procedures, it was easy to cause compliant and
regulatory risks existing in the validity and feasibility of contract, commitments and other legal
documents signed.
Precautionary measures: The Company carefully studied and mastered laws, regulations and policies
relevant to derivative products transaction, formulated internal control rules for the forward settlement
hedging business, standardized the operation procedures. And strengthened the compliant examination
on derivative products investment business, and strictly abided by relevant laws, regulations and the
Company’s internal management rules.
Analysis on risks and control
2. Credit risk and liquidity risk
measures of derivative
When the contract matures, the Company couldn’t deliver as scheduled due to insufficient liquidity,
products held in the reporting
and the counterparty or the Company couldn’t fulfill the contract due to other aspects except the
period (including but not
liquidity, which would cause credit risk and further economic losses for the Company.
limited to market risk, liquidity
Precaution measure: the Company chose the powerful financial institutions with good reputation as the
risk, credit risk, operation risk,
counterparty, and signed standard derivative products transaction contract, as well as strictly controlled
law risk, etc.)
the credit risk of counterparty. 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 2012 approved at the First Special Session of the
Shareholders’ General Meeting for 2012 on 5 Mar. 2012, and performed relevant information
disclosure responsibilities. The Company decided the up limit for the amount of derivative products
transaction according to the production and operation scale and the progress of foreign exchange
income for the Company, and delivered by phases. It was also possible to use extension of term and
other ways to ensure the fulfillment of contract as schedules upon the mature of contract, and wouldn’t
cause any loss of credit risk for the Company due to insufficient liquidity or other reasons.
3. Operation risk
The derivative financial transactions had high specialty and complexity, so imperfect internal operation
procedures, staffs and external events would make the Company to undertake risks during the
transaction.
Precaution measure: The Company promulgated strict authorization and approval system and perfect
regulatory mechanism, fixed the departments, operation procedures and approval procedures system to
5
conduct derivative products transaction, established special risk control positions, implemented strict
authorization and post checks and balances system, meanwhile, it improved the overall quality of
relevant personnel through strengthening the business training and professional ethics education for
them. Besides, it established the System of Reporting the Abnormal Situation Timely, formed an
efficient risk management procedures, so as to ensure to lower the operation risks to the maximum.
4. Market risk
The forward settlement of exchange is an important derivative products transaction, which was
significantly affected by the exchange rate fluctuation due to its large amount. The Central Bank
decided to expand the fluctuation range of RMB exchange rate from bidirectional 0.5% to
bidirectional 1% since 16 Apr. 2012, which would increase the difficulty in the operation of forward
settlement of exchange. Besides, 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: Renminbi appreciated significantly compared with that before
the exchange rate reform, but Renminbi internationalization would be a long-term goal, which decided
that Reiminbi would not depreciated significantly. Although the increased fluctuation range added the
operation difficulty, it provided a certain opportunity, which required relevant personnel of the
Company actively master the market trend, carefully operate and hold positive opportunity, so as to try
the best to reduce the market risks under the condition of increased market difficulty.
1. Up to 31 Mar. 2012, the undue financial derivative product contracts held by the Company totaled
Changes of market prices or US$ 398.1 million, of which there were 34 forward settlement contracts valuing US$ 385 million (all
fair values in the reporting due before 31 Dec. 2012) and 1 exchange rate swap contract valuing US$ 13.1 million (due before 18
period of the invested Apr. 2012). The two said kinds of financial derivative products accounted for 49.93% of the closing
derivatives. And the analysis net assets attributable to shareholders of the Company.
on the fair value of the 2. For Jan. to Mar. 2012, the due financial derivative products of the Company totally equaled to US$
derivatives should include the 166,051,700, of which US$ 153,051,700 was actually delivered and the gain generated was RMB
specific use methods and the 13,419,800. The due forward settlement was US$ 150 million, of which US$ 137 million was
relevant assumptions and delivered as scheduled, generating gain of RMB 12,944,800; US$ 13 million was extended; and the
parameters. due forward foreign exchange trading amount equaled to US$ 16,051,700, which was all delivered as
scheduled and generated gain of RMB 475,000.
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
Concerning the Company’s derivative transactions, the Company’s independent directors Zhou Zhiji,
Hong Xiaobin, Qi Haodong, Bi Xiuli and Wang Lei issued their professional opinions as follows:
1. Up to 31 Mar. 2012, the undue financial derivative product contracts held by the Company totaled
US$ 398.1 million, of which there were 34 forward settlement contracts valuing US$ 385 million (all
due before 31 Dec. 2012) and 1 exchange rate swap contract valuing US$ 13.1 million (due before 18
Apr. 2012). The two said kinds of financial derivative products accounted for 49.93% of the closing
net assets attributable to shareholders of the Company.
2. For Jan. to Mar. 2012, the due financial derivative products of the Company totally equaled to US$
166,051,700, of which US$ 153,051,700 was actually delivered and the gain generated was RMB
13,419,800. The due forward settlement was US$ 150 million, of which US$ 137 million was
delivered as scheduled, generating gain of RMB 12,944,800; US$ 13 million was extended; and the
due forward foreign exchange trading amount equaled to US$ 16,051,700, which was all delivered as
scheduled and generated gain of RMB 475,000.
Specific opinion from 3. The Company conducted derivative investment transactions according to the relevant approval
independent directors on the procedure, which was in line with relevant laws, regulations, the Company’s Articles of Association,
Company’s derivatives the Management Rules for Derivative Investment of Lu Thai Textile Co., Ltd. and the Plan for
investment and risk control Derivative Transactions in 2012 approved at the First Special Session of the Shareholders’ General
Meeting for 2012 on 5 Mar. 2012
4. 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.
5. On the basis of its normal operation, the Company used its own funds to conduct derivative
investment transactions, 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 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 2012.
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
6
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, 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
Opening contract Closing contract Gain or loss in the contract amount in the
Type of contract
amount amount reporting period closing net assets of the
Company (%)
Forward settlement and purchase of
3,367,888,570.00 2,604,984,170.00 13,419,818.93 49.93%
exchange contract
Total 3,367,888,570.00 2,604,984,170.00 13,419,818.93 49.93%
§4 Attachments
4.1 Balance sheet
Prepared by Lu Thai Textile Co., Ltd. 31 Mar. 2012 Unit: RMB Yuan
Closing balance Opening balance
Items
Consolidation The Company Consolidation The Company
Current Assets:
Monetary funds 546,900,286.83 269,976,594.99 811,148,146.93 443,347,389.73
Transactional financial assets 11,288,092.00 9,233,230.00 20,939,380.00 15,609,030.00
Notes receivable 115,777,282.08 93,906,488.55 160,499,797.76 123,468,955.42
Accounts receivable 154,212,355.81 189,105,786.79 201,327,903.05 286,596,629.41
Accounts paid in advance 165,494,156.05 371,382,323.07 304,469,373.14 390,452,279.69
Dividend receivable
Other accounts receivable 73,604,852.45 28,256,358.25 74,534,378.60 36,382,500.69
Financial assets purchased
under agreements to resell
Inventories 1,730,487,135.58 1,089,742,901.62 1,666,911,255.92 1,089,685,685.73
Non-current assets due within 1
year
Other current assets
Total current assets 2,797,764,160.80 2,051,603,683.27 3,239,830,235.40 2,385,542,470.67
Non-current assets:
Long-term accounts receivable
Long-term equity investment 68,942,600.00 1,063,495,189.90 68,942,600.00 1,063,495,189.90
Investing property
Fixed assets 3,534,337,804.56 2,288,046,569.15 3,486,072,973.42 2,216,930,369.90
Construction in progress 640,575,199.03 160,757,292.02 502,165,921.54 139,596,130.53
Engineering materials 117,959,092.90 115,280,919.41 39,746,597.82 37,171,903.43
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 328,802,918.95 196,149,603.25 309,099,281.13 176,687,021.73
R&D expense
Goodwill 20,563,803.29 20,563,803.29
Long-term deferred expenses
Deferred income tax assets 58,595,736.53 28,644,499.31 60,061,475.83 30,180,069.34
Other non-current assets 25,402,452.00 25,402,452.00
Total of non-current assets 4,769,777,155.26 3,852,374,073.04 4,512,055,105.03 3,689,463,136.83
Total assets 7,567,541,316.06 5,903,977,756.31 7,751,885,340.43 6,075,005,607.50
Current liabilities:
Short-term borrowings 1,123,465,236.97 585,881,595.39 1,151,414,422.38 687,511,722.38
Transactional financial
liabilities
Notes payable 11,223,127.59 9,238,621.59 11,981,603.44 9,531,302.09
Accounts payable 226,679,541.88 103,492,468.16 284,362,673.51 91,559,699.03
Accounts received in advance 103,682,070.85 44,016,553.53 91,026,359.71 41,115,833.49
Employee’s compensation
294,536,896.14 262,807,875.22 435,106,415.39 379,732,952.85
payable
Tax payable -61,349,689.91 -15,757,456.65 30,576,451.34 44,571,730.86
7
Interest payable 1,227,529.52 1,227,529.52 2,113,143.22 2,113,143.22
Dividend payable 442,309.44 442,309.44 442,309.44 442,309.44
Other accounts payable 120,135,854.90 17,691,867.59 110,780,795.92 16,585,657.28
Non-current liabilities due
64,474,240.00 64,474,240.00 69,058,740.00 69,058,740.00
within 1 year
Other current liabilities
Total current liabilities 1,884,517,117.38 1,073,515,603.79 2,186,862,914.35 1,342,223,090.64
Non-current liabilities:
Long-term borrowings 12,675,030.00 12,675,030.00
Bonds payable
Long-term payables 9,735,560.00 9,735,560.00
Specific payables
Estimated liabilities
Deferred income tax liabilities 3,814,720.17 1,384,984.50 5,262,675.09 2,341,354.50
Other non-current liabilities 67,103,041.53 32,326,116.58 67,441,604.49 32,494,901.59
Total non-current liabilities 80,653,321.70 33,711,101.08 95,114,869.58 47,511,286.09
Total liabilities 1,965,170,439.08 1,107,226,704.87 2,281,977,783.93 1,389,734,376.73
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share
1,008,954,800.00 1,008,954,800.00 1,008,954,800.00 1,008,954,800.00
capital)
Capital reserves 1,215,783,125.18 1,222,135,806.27 1,200,110,642.06 1,206,463,323.15
Less: Treasury stock
Specific reserves
Surplus reserves 515,895,752.76 515,895,752.76 515,895,752.76 515,895,752.76
Provisions for general risks
Retained profits 2,482,384,202.98 2,049,764,692.41 2,367,189,767.76 1,953,957,354.86
Foreign exchange difference -6,055,368.15 -6,050,509.48
Total equity attributable to owners
5,216,962,512.77 4,796,751,051.44 5,086,100,453.10 4,685,271,230.77
of the Company
Minority interests 385,408,364.21 383,807,103.40
Total owners’ equity 5,602,370,876.98 4,796,751,051.44 5,469,907,556.50 4,685,271,230.77
Total liabilities and owners’
7,567,541,316.06 5,903,977,756.31 7,751,885,340.43 6,075,005,607.50
equity
4.2 Income Statement
Prepared by Lu Thai Textile Co., Ltd. Jan.- Mar. 2012 Unit: RMB Yuan
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 1,320,451,250.50 1,038,784,250.03 1,412,599,864.78 1,130,511,602.06
Including: Sales income 1,320,451,250.50 1,038,784,250.03 1,412,599,864.78 1,130,511,602.06
II. Total operating cost 1,193,798,438.42 937,669,784.83 1,156,587,188.39 920,988,850.03
Including: Cost of sales 1,000,747,047.42 820,205,626.80 963,276,084.75 795,442,500.52
Taxes and associate charges 1,276,690.00 155,448.50 4,839,721.86 2,797,821.54
Selling and distribution expenses 36,212,191.36 13,562,941.24 38,812,200.44 12,518,737.17
Administrative expenses 135,351,624.89 98,549,542.30 136,817,794.98 107,128,249.26
Financial expenses 19,365,581.81 7,446,875.58 11,762,116.61 1,204,235.18
Asset impairment loss 845,302.94 -2,250,649.59 1,079,269.75 1,897,306.36
Add: Gain/(loss) from change in fair value -9,651,288.00 -6,375,800.00 -15,761,029.53 -16,715,029.53
Gain/(loss) from investment 13,419,818.93 10,234,314.93 17,691,123.40 15,187,273.40
Including: share of profits in associates and
joint ventures
Foreign exchange gains
III. Business profit 130,421,343.01 104,972,980.13 257,942,770.26 207,994,995.90
Add: non-operating income 9,285,558.91 8,130,595.54 7,935,544.21 1,983,165.07
Less: non-operating expense 347,257.62 125,591.17 761,382.60 631,434.31
Including: loss from non-current asset
disposal
IV. Total profit 139,359,644.30 112,977,984.50 265,116,931.87 209,346,726.66
Less: Income tax expense 22,563,948.27 17,170,646.95 41,890,630.37 29,209,258.84
V. Net profit 116,795,696.03 95,807,337.55 223,226,301.50 180,137,467.82
Attributable to owners of the Company 115,194,435.22 95,807,337.55 207,753,038.55 180,137,467.82
Minority shareholders’ income 1,601,260.81 15,473,262.95
VI. Earnings per share
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(I) basic earnings per share 0.11 0.09 0.21 0.18
(II) diluted earnings per share 0.11 0.09 0.21 0.18
Ⅶ. Other comprehensive incomes -4,858.67 -205,283.48
Ⅷ. Total comprehensive incomes 116,790,837.36 95,807,337.55 223,021,018.02 180,137,467.82
Attributable to owners of the Company 115,189,576.55 95,807,337.55 207,547,755.07 180,137,467.82
Attributable to minority shareholders 1,601,260.81 15,473,262.95
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. 2012 Unit: RMB Yuan
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating activities:
Cash received from sale of commodities and
1,456,420,223.96 1,158,877,824.70 1,399,803,050.59 1,100,050,104.07
rendering of service
Tax refunds received 28,523,996.28 14,717,959.54 66,693,051.06 43,990,168.64
Other cash received relating to operating
19,377,836.60 8,521,921.72 14,521,696.52 3,044,588.74
activities
Subtotal of cash inflows from operating
1,504,322,056.84 1,182,117,705.96 1,481,017,798.17 1,147,084,861.45
activities
Cash paid for goods and services 893,244,544.74 683,733,808.35 992,472,352.64 672,366,754.00
Cash paid to and for employees 354,247,844.79 272,635,652.05 299,828,060.53 233,480,985.21
Various taxes paid 79,507,445.63 26,075,086.58 49,175,537.92 30,392,750.57
Other cash payment relating to operating
77,946,414.95 37,753,664.65 79,725,752.82 34,927,194.03
activities
Subtotal of cash outflows from operating
1,404,946,250.11 1,020,198,211.63 1,421,201,703.91 971,167,683.81
activities
Net cash flows from operating activities 99,375,806.73 161,919,494.33 59,816,094.26 175,917,177.64
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 454,634.61 54,634.61 161,911.02 161,911.02
assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to investing
14,701,870.91 11,150,450.71 19,402,067.81 16,711,741.58
activities
Subtotal of cash inflows from investing
15,156,505.52 11,205,085.32 19,563,978.83 16,873,652.60
activities
Cash paid to acquire fixed assets, intangible
302,821,161.36 203,643,320.12 67,455,785.46 39,535,339.67
assets and other long-term assets
Cash paid for investment
Net cash paid to acquire subsidiaries and other
business units
Other cash payments relating to investing
activities
Subtotal of cash outflows from investing
302,821,161.36 203,643,320.12 67,455,785.46 39,535,339.67
activities
Net cash flows from investing activities -287,664,655.84 -192,438,234.80 -47,891,806.63 -22,661,687.07
III. Cash flows from financing activities:
Cash received from capital contributions
Including: Cash received from minority
shareholder investments by subsidiaries
Cash received from borrowings 426,456,463.65 194,228,287.02 574,654,800.55 222,127,900.55
Cash received from issuance of bonds
Other cash received relating to financing
3,000,000.00 5,000,000.00
activities
Subtotal of cash inflows from financing
429,456,463.65 194,228,287.02 579,654,800.55 222,127,900.55
activities
Repayment of borrowings 485,354,018.19 326,354,018.19 451,536,913.08 200,639,675.58
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Cash paid for interest expenses and
18,273,388.58 10,792,723.51 14,961,803.91 8,953,486.71
distribution of dividends or profit
Including: dividends or profit paid by
subsidiaries to minority shareholders
Other cash payments relating to financing
2,000,000.00 8,460,000.00
activities
Sub-total of cash outflows from financing
505,627,406.77 337,146,741.70 474,958,716.99 209,593,162.29
activities
Net cash flows from financing activities -76,170,943.12 -142,918,454.68 104,696,083.56 12,534,738.26
IV. Effect of foreign exchange rate changes on
211,932.13 66,400.41 -564,169.62 -271,106.15
cash and cash equivalents
V. Net increase in cash and cash equivalents -264,247,860.10 -173,370,794.74 116,056,201.57 165,519,122.68
Add: Cash and cash equivalents at the
811,148,146.93 443,347,389.73 522,955,236.37 280,772,869.89
period-begin
VI. Cash and cash equivalents at the period-end 546,900,286.83 269,976,594.99 639,011,437.94 446,291,992.57
4.4 Auditor’s report
Auditor’s opinion: un-audited
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