Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
Lu Thai Textile Co., Ltd.
Report for the First Quarter of 2013
April 2013
1
Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
Section I. Important Reminders
The Board of Directors, the Supervisory Committee, directors, supervisors and senior management staff of Lu
Thai Textile Co., Ltd. (hereinafter referred to as “the Company”) warrant that the information carried in this report
is factual, accurate and complete, without any false record, misleading statement or material omission. And they
shall be jointly and severally liable for that.
Liu Shizhen, company principal, Zhang Hongmei, chief of the accounting work, and Zhang Keming, chief of the
accounting organ (chief of accounting), hereby confirm that the financial statements enclosed in this report are
factual, accurate and complete.
All directors have attended the board session for reviewing this report.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
Section II. Financial Highlights & Change of Shareholders
I. Financial highlights
Does the Company adjust retrospectively or restate any accounting data of previous years?
□ Yes √No
Jan.-Mar. 2013 Jan.-Mar. 2012 +/- (%)
Operating revenues (RMB Yuan) 1,501,664,061.00 1,320,451,250.50 13.72%
Net profit attributable to shareholders of the Company (RMB
192,567,560.95 115,194,435.22 67.17%
Yuan)
Net profit attributable to shareholders of the Company after
188,001,855.13 106,051,635.51 77.27%
extraordinary gains and losses (RMB Yuan)
Net cash flows from operating activities (RMB Yuan) 105,086,762.40 99,375,806.73 5.75%
Basic EPS (RMB Yuan/share) 0.2 0.11 81.82%
Diluted EPS (RMB Yuan/share) 0.2 0.11 81.82%
Weighted average ROE (%) 3.59% 2.24% 1.35%
31 Mar. 2013 31 Dec. 2012 +/- (%)
Total assets (RMB Yuan) 7,837,915,665.27 8,153,279,084.33 -3.87%
Net assets attributable to shareholders of the Company (RMB
5,463,486,856.24 5,268,701,258.26 3.7%
Yuan)
Items and amounts of extraordinary gains and losses
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item 1 Jan. 2013-31 Mar. 2013 Explanation
Gain/loss on the disposal of non-current assets (including the offset part of the asset
276,699.46
impairment provisions)
Government grants recognized in the current period, except for those acquired in
the ordinary course of business or granted at certain quotas or amounts according to 9,914,397.96
the government’s unified standards
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
-1,169,831.00
financial assets and tradable financial liabilities and financial assets available for
sales except for effective hedging related with normal businesses of the Company
Non-operating income and expense other than the above 504,629.84
Income tax effects 3,088,372.43
Minority interests effects (after tax) 1,871,818.01
Total 4,565,705.82 --
II. Total number of shareholders at the period-end and shareholdings of top 10 shareholders
Unit: share
Total number of shareholders at the
105,702
period-end
Shareholdings of top 10 shareholders
Pledged or frozen
Sharehol
Total shares Number of shares
Nature of ding
Name of shareholder held at the restricted shares Numbe
shareholder percenta Status of
period-end held r of
ge (%) shares
shares
Domestic
Zibo Lucheng Textile Investment Co., Ltd. non-state-owned 12.22% 123,314,700 0
corporation
Foreign
Tailun (Thailand) Textile Co., Ltd. 11.72% 118,232,400 118,232,400
corporation
DBS VICKERS (HONG KONG) LTD A/C Foreign
4.02% 40,528,642
CLIENTS corporation
Bank of China—Franklin Templeton Sealand
Other 0.97% 9,810,288
Potential Portfolio Stock Fund
ICBC－GF Strategy Selected Mixed Type Fund Other 0.86% 8,666,661
China Life Insurance Co., Ltd.- dividend- Other 0.77% 7,763,464
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
individual dividend-005L-FH002 Shen
Foreign
HTHK-MANULIFE CHINA VALUE FUND 0.51% 5,177,416
corporation
Agricultural Bank of China－Franklin
Templeton Sealand Deepening Value Stock Other 0.41% 4,185,867
Fund
Construction Bank of China－China Income
Other 0.36% 3,639,157
Stock Fund
Agricultural Bank of China－New China Fund
Other 0.33% 3,377,346
Selected Dividend Mixed Type Fund
Shareholdings of top 10 non-restricted shareholders
Number of Variety of shares
Name of shareholder non-restricted shares
Variety Number
held
RMB ordinary
Zibo Lucheng Textile Investment Co., Ltd. 123,314,700 123,314,700
shares
Domestically
DBS VICKERS (HONG KONG) LTD A/C CLIENTS 40,528,642 listed foreign 40,528,642
shares
Bank of China—Franklin Templeton Sealand Potential Portfolio RMB ordinary
9,810,288 9,810,288
Stock Fund shares
RMB ordinary
ICBC－GF Strategy Selected Mixed Type Fund 8,666,661 8,666,661
shares
China Life Insurance Co., Ltd.- dividend- individual RMB ordinary
7,763,464 7,763,464
dividend-005L-FH002 Shen shares
Domestically
HTHK-MANULIFE CHINA VALUE FUND 5,177,416 listed foreign 5,177,416
shares
Agricultural Bank of China－Franklin Templeton Sealand RMB ordinary
4,185,867 4,185,867
Deepening Value Stock Fund shares
RMB ordinary
Construction Bank of China－China Income Stock Fund 3,639,157 3,639,157
shares
Agricultural Bank of China－New China Fund Selected Dividend RMB ordinary
3,377,346 3,377,346
Mixed Type Fund shares
Domestically
VALUE PARTNERS HIGH-DIVIDEND STOCKS FUNDS 3,292,186 listed foreign 3,292,186
shares
Explanation on associated relationship or persons acting in concert Zibo Lucheng Textile Investment Co., Ltd. is the largest
among the above-mentioned shareholders shareholder of the Company and the actual controller. Tailun
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
(Thailand) Textile Co., Ltd. is the sponsor of foreign capital as
well as the second largest shareholder of the Company. All of
other shareholders are ones holding circulating A share or
circulating B share and the Company is not able to confirm
whether there exists associated relationship or concerted action
among other shareholders.
Section III. Significant Events
I. Significant changes of the major accounting statement items and financial indicators for the
reporting period, as well as the reasons for these changes
1. Monetary funds stood at RMB 602,230,271.64 as at 31 Mar. 2013, down 34.52% over the opening amount,
which was mainly because the Company used monetary funds to repay the loans of bank.
2. Transactional financial assets stood at RMB 11,570,060.00 as at 31 Mar. 2013, down 37.08% over the opening
amount, which was mainly because the fair value of transactional financial assets was changed.
3. Notes receivable stood at RMB 89,183,187.02 as at 31 Mar. 2013, down 43.82% over the opening amount,
which was mainly because the Company indorsed the received bank acceptance bills, and transferred them to pay
for the materials.
4. Prepayments stood at RMB 162,581,203.19 as at 31 Mar. 2013, up 68.98% over the opening amount, which
was mainly because the prepayment for raw materials increased.
5. Engineering materials stood at RMB 1,612,741.92 as at 31 Mar. 2013, down 86.62% over the opening amount,
which was mainly because the special equipments were transferred to fixed assets.
6. Payroll payable stood at RMB 232,328,260.13 as at 31 Mar. 2013, down 33.16% over the opening amount,
which was mainly because year-end bonuses withdrawn in 2012 were paid in this period.
7. Interest payable stood at RMB 1,682,293.18 as at 31 Mar. 2013, down 37.00% over the opening amount, which
was mainly because the accrued interest was decreased.
8. Non-current liabilities due within one year stood at RMB 0.00 as at 31 Mar. 2013, down 100.00% over the
opening amount, which the non-current liabilities due within one year were repaid for maturity.
9. Business taxes and surchanges stood at RMB 5,571,295.31 in the reporting period, up 336.39% over the same
period of last year, which was mainly because the urban maintenance & construction tax and education surcharge,
etc. increased.
10. Financial expense stood at RMB 13,430,601.61 in the reporting period, down 30.65% over the same period of
last year, which was mainly because the interest expenses decreased in the reporting period.
11. Assets impairment losses stood at RMB -3,325,479.95 in the reporting period, down 493.41% over the same
period of last year, which was mainly because the accounts receivable and other receivables decreased, and the
corresponding withdrawal amount of provision for bad debts decreased.
12. Investment income stood at RMB 5,648,750.00 in the reporting period, down 57.91% over the same period of
last year, which was mainly because the investment income gained from disposal of transactional financial assets
decreased over the same period of last year.
13. Income taxes expenses stood at RMB 38,120,330.75 in the reporting period, up 68.94% over the same period
of last year, which was mainly because the taxable income increased in the year.
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
II. Commitments made by the Company or any shareholder with a shareholding over 5% in
the reporting period or such commitments carried down into the reporting period
Commit Party making the Date of making Term for
Content of commitment Fulfillment of commitment
ment commitment commitment acceptance
Zibo Lucheng will not reduce
its shareholding within 60
months after reform of
non-tradable shares and, within
Not reduce the
24 months after the term of 60
shareholding
months, the price of selling
within 60
holding shares shall not be
months after
lower than RMB 15 per share (if Increase of bonus share for
reform of
the share capital changes, 2005 and 2006 has been
non-tradable
ex-rights and ex-dividend will fulfilled. The total profit of
shares and,
be conducted); it proposed and 2008 increased by 58.06%
within 24
voted for a cash distribution not compared to that of 2005. Till
Commit months after the
lower than 50% of the profit 12 June 2011, the non-tradable
ments Zibo Lucheng term of 60
available for distribution in the term of 9835.80 ten thousand
made in Textile Investment months, the
year at the 2006 Shareholders’ 12 June 2006 shares held by Lu Cheng
a share Co., Ltd. price of selling
General Meeting and 2007 Company came to an end and
reform holding shares
Shareholders’ General Meeting; the above shares came into
shall not be
it will increase the LU THAI A market on 24 June 2011 and are
lower than RMB
shares held by it through trading not reduced at present.
15 per share (if
at the secondary market with the
the share capital
dividends received in 2005 and
changes,
2006, and the increase of the
ex-rights and
LU THAI A shares held shall be
ex-dividend will
accomplished within 12 months
be conducted)
after the dividend is transferred
to its account. In 2008, the total
profit increased by not less than
30% compared with that in
2005.
Commit
ments
made in
acquisiti
on None None None None
reports
or report
on
changes
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
in equity
Commit
ments
made at
the time None None None None
of assets
reorgani
zation
Investment projects of raised
funds including project on 150
thousand ingots of high-end
combed yarn, project on
production line of 50 thousand
ingots of two-for-one twisting,
project on complementing
circulating funds of the
company, project on production
Commit
line of 10 million meters of
ments at
high-end jacquard for female
the time
garments have already been
of initial
Lu Thai Textile Investment project of raised fulfilled. On 18 Oct. 2011, the
public 19 Dec. 2008
Co., Ltd. funds 3rd temporary shareholders’
issuance
general meeting approved that
or
RMB 140 million raised funds
re-financ
of this project were transferred
ing
into project on increasing 40
million meters of high-end
yarn-dyed fabric production
line. Till the end of the reporting
period, this project has already
been finished. And project on
network construction of brand
and marketing is under the
implementation.
Other
commit
ments
made for
medium None None None None
and
small
sharehol
ders of
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
the
Compan
y
Whether
commit
ments
Yes
were
fulfilled
in time
Specific
reasons
of
unfinish
ed None
fulfillme
nt and
further
plan
Whether
commit
ments
about
horizont
al
No
competit
ion and
related
transacti
ons were
made
Term of
settling
None
commit
ments
Methods
of
None
settleme
nt
Fulfillm
ent of
None
commit
ments
8
Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
III. Derivative investments
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 measures 2. Credit risk and liquidity risk:
of derivative products held in the When the contract matures, the Company couldn’t deliver as scheduled due to insufficient
reporting period (including but not liquidity, and the counterparty or the Company couldn’t fulfill the contract due to other
limited to market risk, liquidity risk, aspects except the liquidity, which would cause credit risk and further economic losses for
credit risk, operation risk, law risk, the Company.
etc.) Precaution measure: the Company chose the powerful financial institutions with good
reputation as the counterparty, and signed standard derivative products transaction contract,
as well as strictly controlled 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.
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
Precaution measure: The Company promulgated strict authorization and approval system
and perfect regulatory mechanism, fixed the departments, operation procedures and
approval procedures system to 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 Renminbi 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. 2013, the Company held 31 undue financial derivative product contracts,
Changes of market prices or fair
totaling US$ 299 million, with all being forward settlement contracts (all due before Apr.
values in the reporting period of the
2014). The above financial derivative products accounted for 32.18% of the closing net
invested derivatives. And the analysis
assets.
on the fair value of the derivatives
2. From Jan. 2013 to Mar. 2013, the due financial derivative products of the Company
should include the specific use
totally equaled to US$ 143.50 million, all of them were forward exchange settlement; of
methods and the relevant assumptions
which US$ 103.50 million was actually delivered and the gain generated was RMB 5.6488
and parameters.
million, US$ 40 million was extended.
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
Specific opinion from independent
opinions as follows:
directors on the Company’s derivatives
1. Up to 31 Mar. 2013, the Company held 31 undue financial derivative product contracts,
investment and risk control
totaling US$ 299 million, with all being forward settlement contracts (all due before Apr.
2014). The above financial derivative products accounted for 32.18% of the closing net
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
assets.
2. From Jan. 2013 to Mar. 2013, the due financial derivative products of the Company
totally equaled to US$ 143.50 million, all of them were forward exchange settlement; of
which US$ 103.50 million was actually delivered and the gain generated was RMB 5.6488
million, US$ 40 million was extended.
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 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. When making derivative investments in the reporting period, the Company strictly
abided by relevant laws, regulations, the Company’s Articles of Association and the
“Management Rules of Lu Thai Textile for Derivative Trading”, with the operation process
in line with laws and regulations.
7. 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 the Report for First Quarter of 2013.
To sum up, we were of the opinion that it would strengthen the Company’s competitiveness
to use derivative transactions with focus on forward settlement and purchase as an effective
tool to avoid foreign exchange risks, to strengthen the relevant internal control and to carry
out the loss and risk prevention measures so as to improve the operation and management,
which was good for the Company to display its competitive advantage. The Company
conducted derivative transactions with focus on forward settlement and purchase has legal
approval procedures, perfect institution and controllable risks, and no harm was done to
interests of the Company’s shareholders.
Position holdings of derivative investments at the end of the reporting period:
√ Applicable □ Inapplicable
Proportion of the closing
Opening contract amount Closing contract amount Gain or loss in the contract amount in the
Type of contract
（RMB Yuan） （RMB Yuan） reporting period closing net assets of the
Company (%)
Forward settlement
954,842,259.00 1,884,782,100.00 5,648,750.00 32.18%
contracts
Total 954,842,259.00 1,884,782,100.00 -- 32.18%
Note
11
Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
IV. Researches, visits and interviews received in the reporting period
Main discussion
Place of Way of Visitor and materials
Time of reception Visitor
reception reception type provided by the
Company
Reception
Field Institutio Hua Xiaowei and Yang Lan from China Galaxy Basic information
23 Jan. 2013 Room of the
research n Securities Co., Ltd. about the Company
Company
Reception
Field Institutio Basic information
23 Jan. 2013 Room of the Lv Liping from First Capital Securities Co.,Ltd.
research n about the Company
Company
Reception
Field Institutio Weng Di from Shanghai Milestone Asset Basic information
23 Jan. 2013 Room of the
research n Management Co., Ltd. about the Company
Company
Reception
Field Institutio Basic information
23 Jan. 2013 Room of the Su Linhao from Sealand Securities Co., Ltd.
research n about the Company
Company
Reception
Field Institutio Tang Shuangshuang from HuaChuang Securities Co., Basic information
23 Jan. 2013 Room of the
research n Ltd. about the Company
Company
Reception
Field Institutio Basic information
23 Jan. 2013 Room of the Liu Yang from Da Cheng Fund Management Co., Ltd.
research n about the Company
Company
Reception
Field Institutio Fu Fangbao from Tianhong Asset Management Co., Basic information
23 Jan. 2013 Room of the
research n Ltd. about the Company
Company
Reception
Field Institutio Basic information
23 Jan. 2013 Room of the Zhang Hao from Harvest Fund Management Co., Ltd.
research n about the Company
Company
Reception
Field Institutio Chen Yao from Beijing Star Rock Investment Basic information
23 Jan. 2013 Room of the
research n Management Co., Ltd. about the Company
Company
Reception
Field Institutio Basic information
20 Feb. 2013 Room of the Li Yiguang from Haitong International
research n about the Company
Company
Reception
Field Institutio Basic information
20 Feb. 2013 Room of the Lyhas capital:Jon Ogden and David N.Devine
research n about the Company
Company
12
Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
Section IV. Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 602,230,271.64 919,734,646.13
Transactional financial assets 11,570,060.00 18,388,641.00
Notes receivable 89,183,187.02 158,739,877.01
Accounts receivable 195,924,230.27 228,133,619.46
Accounts paid in advance 162,581,203.19 96,214,664.63
Dividend receivable
Other accounts receivable 44,920,839.81 63,051,887.49
Financial assets purchased under agreements
to resell
Inventories 1,761,122,094.67 1,684,292,327.27
Non-current assets due within 1 year
Other current assets 60,655,356.77 68,068,385.18
Total current assets 2,928,187,243.37 3,236,624,048.17
Non-current assets:
Long-term accounts receivable
Long-term equity investment 67,442,600.00 67,442,600.00
Investing property
Fixed assets 4,141,938,689.60 4,186,294,298.29
Construction in progress 293,069,521.80 242,436,748.42
Engineering materials 1,612,741.92 12,057,574.11
Disposal of fixed assets
Intangible assets 316,405,580.85 319,013,492.53
R&D expense
Goodwill 20,613,803.29 20,613,803.29
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
Long-term deferred expenses 1,782,609.37 1,806,377.50
Deferred income tax assets 58,972,185.07 59,099,452.02
Other non-current assets 7,890,690.00 7,890,690.00
Total of non-current assets 4,909,728,421.90 4,916,655,036.16
Total assets 7,837,915,665.27 8,153,279,084.33
Current liabilities:
Short-term borrowings 1,028,148,001.90 1,415,078,463.05
Transactional financial liabilities
Notes payable 11,060,968.65 9,512,094.30
Accounts payable 277,349,279.50 327,495,627.56
Accounts received in advance 94,786,182.44 115,544,995.57
Employee’s compensation payable 232,328,260.13 347,614,652.54
Tax payable 47,157,951.01 50,873,887.19
Interest payable 1,682,293.18 2,670,262.59
Dividend payable 441,966.54 441,966.54
Other accounts payable 145,955,684.06 135,800,195.70
Non-current liabilities due within 1 year 12,851,550.00
Other current liabilities
Total current liabilities 1,838,910,587.41 2,417,883,695.04
Non-current liabilities:
Long-term borrowings 62,689,000.00
Bonds payable
Long-term payables 9,735,560.00 9,735,560.00
Special payables
Estimated liabilities
Deferred income tax liabilities 3,849,163.77 4,880,456.83
Other non-current liabilities 65,752,774.69 66,087,352.65
Total non-current liabilities 142,026,498.46 80,703,369.48
Total liabilities 1,980,937,085.87 2,498,587,064.52
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 1,008,894,800.00 1,008,894,800.00
Capital reserves 1,232,592,355.16 1,230,191,471.42
Less: Treasury stock 272,794,496.52 272,794,496.52
Specific reserves
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
Surplus reserves 579,274,370.26 579,274,370.26
Provisions for general risks
Retained profits 2,921,745,711.35 2,729,178,150.40
Foreign exchange difference -6,225,884.01 -6,043,037.30
Total equity attributable to owners of the
5,463,486,856.24 5,268,701,258.26
Company
Minority interests 393,491,723.16 385,990,761.55
Total owners’ (or shareholders’) equity 5,856,978,579.40 5,654,692,019.81
Total liabilities and owners’ (or shareholders’)
7,837,915,665.27 8,153,279,084.33
equity
Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming
2. Balance sheet of the Company
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 351,059,405.74 561,697,936.17
Transactional financial assets 10,965,500.00 18,388,641.00
Notes receivable 69,220,398.86 126,547,171.09
Accounts receivable 201,564,620.76 227,340,296.02
Accounts paid in advance 165,961,268.59 93,344,833.30
Interest receivable
Dividend receivable
Other accounts receivable 25,252,464.98 33,841,380.59
Inventories 1,085,542,379.62 957,461,111.10
Non-current assets due within 1 year
Other current assets 35,270,837.79 35,410,586.78
Total current assets 1,944,836,876.34 2,054,031,956.05
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 1,101,936,804.88 1,101,936,804.88
15
Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
Investing property
Fixed assets 2,474,706,697.40 2,502,972,171.82
Construction in progress 170,108,040.27 131,087,397.75
Engineering materials 1,612,741.92 11,825,529.11
Disposal of fixed assets
Intangible assets 190,873,226.87 192,517,510.55
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 34,922,703.81 35,551,956.91
Other non-current assets 7,890,690.00 7,890,690.00
Total of non-current assets 3,982,050,905.15 3,983,782,061.02
Total assets 5,926,887,781.49 6,037,814,017.07
Current liabilities:
Short-term borrowings 455,153,749.75 674,742,046.27
Transactional financial liabilities
Notes payable 4,460,968.65 6,436,997.30
Accounts payable 136,656,841.38 140,562,402.98
Accounts received in advance 40,619,615.68 40,842,302.85
Employee’s compensation payable 196,315,217.27 285,681,845.09
Tax payable 27,578,891.76 31,703,094.57
Interest payable 509,392.71 766,191.29
Dividend payable 441,966.54 441,966.54
Other accounts payable 18,227,104.67 15,414,367.82
Non-current liabilities due within 1 year 12,851,550.00
Other current liabilities
Total current liabilities 879,963,748.41 1,209,442,764.71
Non-current liabilities:
Long-term borrowings 62,689,000.00
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 1,644,825.01 2,758,296.16
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
Other non-current liabilities 31,654,961.54 31,819,761.55
Total non-current liabilities 95,988,786.55 34,578,057.71
Total liabilities 975,952,534.96 1,244,020,822.42
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 1,008,894,800.00 1,008,894,800.00
Capital reserves 1,238,945,036.25 1,236,544,152.51
Less: Treasury stock 272,794,496.52 272,794,496.52
Specific reserves
Surplus reserves 579,274,370.26 579,274,370.26
Provisions for general risks
Retained profits 2,396,615,536.54 2,241,874,368.40
Foreign exchange difference
Total owners’ (or shareholders’) equity 4,950,935,246.53 4,793,793,194.65
Total liabilities and owners’ (or shareholders’)
5,926,887,781.49 6,037,814,017.07
equity
Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming
3. Consolidated income statement
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Jan.-Mar. 2013 Jan.-Mar. 2012
I. Total operating revenues 1,501,664,061.00 1,320,451,250.50
Including: Sales income 1,501,664,061.00 1,320,451,250.50
Interest income
II. Total operating cost 1,273,001,103.95 1,193,798,438.42
Including: Cost of sales 1,096,398,693.44 1,000,747,047.42
Business taxes and surcharges 5,571,295.31 1,276,690.00
Selling and distribution expenses 39,212,494.00 36,212,191.36
Administrative expenses 121,713,499.54 135,351,624.89
Financial expenses 13,430,601.61 19,365,581.81
Asset impairment loss -3,325,479.95 845,302.94
Add: Gain/(loss) from change in fair value (“-” means
-6,818,581.00 -9,651,288.00
loss)
Gain/(loss) from investment (“-” means loss) 5,648,750.00 13,419,818.93
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
Including: share of profits in associates and joint ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) 227,493,126.05 130,421,343.01
Add: non-operating income 11,241,617.21 9,285,558.91
Less: non-operating expense 545,889.95 347,257.62
Including: loss from non-current asset disposal
IV. Total profit (“-” means loss) 238,188,853.31 139,359,644.30
Less: Income tax expense 38,120,330.75 22,563,948.27
V. Net profit (“-” means loss) 200,068,522.56 116,795,696.03
Including: Net profit achieved by combined parties
before the combinations
Attributable to owners of the Company 192,567,560.95 115,194,435.22
Minority shareholders’ income 7,500,961.61 1,601,260.81
VI. Earnings per share -- --
(I) Basic earnings per share 0.2 0.11
(II) Diluted earnings per share 0.2 0.11
Ⅶ. Other comprehensive incomes -182,846.71 -4,858.67
Ⅷ. Total comprehensive incomes 199,885,675.85 116,790,837.36
Attributable to owners of the Company 192,384,714.24 115,189,576.55
Attributable to minority shareholders 7,500,961.61 1,601,260.81
Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming
4. Income statement of the Company
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Jan.-Mar. 2013 Jan.-Mar. 2012
I. Total sales 994,738,948.52 1,038,784,250.03
Less: cost of sales 713,356,254.80 820,205,626.80
Business taxes and surcharges 3,467,691.96 155,448.50
Selling and distribution expenses 14,705,391.98 13,562,941.24
Administrative expenses 82,748,786.16 98,549,542.30
Financial expenses 3,359,144.47 7,446,875.58
Assets impairment loss -923,303.50 -2,250,649.59
Add: gain/(loss) from change in fair value (“-” means -7,423,141.00 -6,375,800.00
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
loss)
Gain/(loss) from investment (“-” means loss) 6,706,800.00 10,234,314.93
Including: income form investment on associates and
joint ventures
II. Business profit (“-” means loss) 177,308,641.65 104,972,980.13
Add: non-business income 4,627,596.83 8,130,595.54
Less: non-business expense 511,337.48 125,591.17
Including: loss from non-current asset disposal
III. Total profit (“-” means loss) 181,424,901.00 112,977,984.50
Less: income tax expense 26,683,732.86 17,170,646.95
IV. Net profit (“-” means loss) 154,741,168.14 95,807,337.55
V. Earnings per share -- --
(I) Basic earnings per share 0.16 0.09
(II) Diluted earnings per share 0.16 0.09
VI. Other comprehensive income 0.00 0.00
VII. Total comprehensive income 154,741,168.14 95,807,337.55
Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming
5. Consolidated cash flow statement
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Jan.-Mar. 2013 Jan.-Mar. 2012
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 1,599,080,890.04 1,456,420,223.96
Tax refunds received 39,897,008.72 28,523,996.28
Other cash received relating to operating activities 17,970,037.27 19,377,836.60
Subtotal of cash inflows from operating activities 1,656,947,936.03 1,504,322,056.84
Cash paid for goods and services 1,022,143,727.10 893,244,544.74
Cash paid to and for employees 394,916,573.82 354,247,844.79
Various taxes paid 72,203,491.75 79,507,445.63
Other cash payment relating to operating activities 62,597,380.96 77,946,414.95
Subtotal of cash outflows from operating activities 1,551,861,173.63 1,404,946,250.11
Net cash flows from operating activities 105,086,762.40 99,375,806.73
II. Cash flows from investing activities:
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
Cash received from withdrawal of investments
Cash received from return on investments
Net cash received from disposal of fixed assets, intangible assets
965,305.77 454,634.61
and other long-term assets
Net cash received from disposal of subsidiaries or other business
units
Other cash received relating to investing activities 6,713,891.52 14,701,870.91
Subtotal of cash inflows from investing activities 7,679,197.29 15,156,505.52
Cash paid to acquire fixed assets, intangible assets and other
81,985,283.89 302,821,161.36
long-term assets
Cash paid for investment
Net increase of pledged loans
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 81,985,283.89 302,821,161.36
Net cash flows from investing activities -74,306,086.60 -287,664,655.84
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Including: Cash received from minority shareholder
investments by subsidiaries
Cash received from borrowings 116,174,262.46 426,456,463.65
Cash received from issuance of bonds
Other cash received relating to financing activities 58,155,266.00 3,000,000.00
Subtotal of cash inflows from financing activities 174,329,528.46 429,456,463.65
Repayment of borrowings 452,259,927.15 485,354,018.19
Cash paid for interest expenses and distribution of dividends or
12,030,189.31 18,273,388.58
profit
Including: dividends or profit paid by subsidiaries to minority
shareholders
Other cash payments relating to financing activities 43,600,000.00 2,000,000.00
Sub-total of cash outflows from financing activities 507,890,116.46 505,627,406.77
Net cash flows from financing activities -333,560,588.00 -76,170,943.12
IV. Effect of foreign exchange rate changes on cash and cash
-569,196.29 211,932.13
equivalents
V. Net increase in cash and cash equivalents -303,349,108.49 -264,247,860.10
Add: Opening balance of cash and cash equivalents 900,182,215.72 811,148,146.93
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
VI. Closing balance of cash and cash equivalents 596,833,107.23 546,900,286.83
Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming
6. Cash flow statement of the Company
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
Item Jan.-Mar. 2013 Jan.-Mar. 2012
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 1,029,762,995.99 1,158,877,824.70
Tax refunds received 20,355,786.53 14,717,959.54
Other cash received relating to operating activities 6,464,969.62 8,521,921.72
Subtotal of cash inflows from operating activities 1,056,583,752.14 1,182,117,705.96
Cash paid for goods and services 699,236,727.34 683,733,808.35
Cash paid to and for employees 301,098,089.29 272,635,652.05
Various taxes paid 35,190,400.05 26,075,086.58
Other cash payment relating to operating activities 20,387,689.65 37,753,664.65
Subtotal of cash outflows from operating activities 1,055,912,906.33 1,020,198,211.63
Net cash flows from operating activities 670,845.81 161,919,494.33
II. Cash flows from investing activities:
Cash received from retraction of investments
Cash received from return on investments
Net cash received from disposal of fixed assets, intangible assets
965,305.77 54,634.61
and other long-term assets
Net cash received from disposal of subsidiaries or other business
units
Other cash received relating to investing activities 7,243,650.28 11,150,450.71
Subtotal of cash inflows from investing activities 8,208,956.05 11,205,085.32
Cash paid to acquire fixed assets, intangible assets and other
45,717,783.74 203,643,320.12
long-term assets
Cash paid for investment
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investing activities 1,100,000.00
Subtotal of cash outflows from investing activities 46,817,783.74 203,643,320.12
Net cash flows from investing activities -38,608,827.69 -192,438,234.80
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Report for the First Quarter of 2013 of Lu Thai Textile Co., Ltd.
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Cash received from borrowings 62,798,000.00 194,228,287.02
Cash received from issuance of bonds
Other cash received relating to financing activities 155,266.00
Subtotal of cash inflows from financing activities 62,953,266.00 194,228,287.02
Repayment of borrowings 232,031,184.42 326,354,018.19
Cash paid for interest expenses and distribution of dividends or
3,647,506.73 10,792,723.51
profit
Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities 235,678,691.15 337,146,741.70
Net cash flows from financing activities -172,725,425.15 -142,918,454.68
IV. Effect of foreign exchange rate changes on cash and cash
180,142.60 66,400.41
equivalents
V. Net increase in cash and cash equivalents -210,483,264.43 -173,370,794.74
Add: Opening balance of cash and cash equivalents 559,095,505.76 443,347,389.73
VI. Closing balance of cash and cash equivalents 348,612,241.33 269,976,594.99
Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming
II. Audit report
Is this report audited?
□ Yes √ No
Lu Thai Textile Co., Ltd.
Chairman of the Board: Liu Shizhen
25 Apr. 2013
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