Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
Lu Thai Textile Co., Ltd.
Report for the First Quarter of 2014
April 2014
1
Report for the First Quarter of 2014 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.
In addition to the directors of the following, other directors had attended the board session for
reviewing this report.
Name of director not
Position Reason Name of the proxy
attending
The independent director resigned in
Sun Ruizhe Independent director
Jan.2014
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.
This report is prepared in both Chinese and English. Should there be any discrepancy
between the two versions, the Chinese version shall prevail.
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
Section II. Financial Highlights & Change of Shareholders
I. Main accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the
accounting policy or correction of any accounting error?
□ Yes √ No
Jan.-Mar. 2014 Jan.-Mar. 2013 +/- (%)
Operating revenues (RMB Yuan) 1,524,854,012.98 1,501,664,061.00 1.54%
Net profit attributable to shareholders of the Company (RMB Yuan) 213,792,166.20 192,567,560.95 11.02%
Net profit attributable to shareholders of the Company after
227,859,696.84 188,001,855.13 21.2%
extraordinary gains and losses (RMB Yuan)
Net cash flows from operating activities (RMB Yuan) 55,775,238.83 105,086,762.40 -46.92%
Basic EPS (RMB Yuan/share) 0.22 0.2 10%
Diluted EPS (RMB Yuan/share) 0.22 0.2 10%
Weighted average ROE (%) 3.51% 3.59% -0.08%
31 Mar. 2014 31 Dec. 2013 +/- (%)
Total assets (RMB Yuan) 8,169,527,426.87 8,411,948,561.49 -2.88%
Net assets attributable to shareholders of the Company (RMB Yuan) 6,206,194,893.07 5,988,054,133.73 3.64%
Items and amounts of extraordinary gains and losses
√ Applicable □ Inapplicable
Unit: RMB Yuan
1 Jan. 2014-31 Explanati
Item
Mar. 2014 on
Gains/losses on the disposal of non-current assets (including the offset part of the asset impairment
-625,595.82
provisions)
Government grants recognized in the current period, except for those acquired in the ordinary course of
1,678,562.96
business or granted at certain quotas or amounts according to 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 financial assets and tradable financial liabilities
-13,734,369.69
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 740,587.08
Income tax effects 2,571,975.37
Minority interests effects (after tax) -445,260.20
Total -14,067,530.64 --
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
II. Total number of shareholders at the period-end and shareholdings of top 10 shareholders
Unit: share
Total number of shareholders at the
86,927
period-end
Shareholdings of top 10 shareholders
Sharehol Pledged or frozen
Number of
Nature of ding Number of shares
Name of shareholder restricted
shareholder percenta shares held Status of Number of
shares held
ge (%) shares shares
Domestic
Zibo Lucheng Textile Investment Co., Ltd. non-state-owned 14.08% 134,613,925 Pledged 22,727,200
corporation
Tailun (Thailand) Textile Co., Ltd. Foreign corporation 12.37% 118,232,400 118,232,400
DBS VICKERS (HONG KONG) LTD A/C
Foreign corporation 4.2% 40,128,642
CLIENTS
LYNAS ASIA FUND Foreign corporation 1.68% 16,014,521
VALUE PARTNERS HIGH-DIVIDEND
Foreign corporation 1.5% 14,366,702
STOCKS FUNDS
Domestic
Everbright Pramerica Quantified Core Fund non-state-owned 1.2% 11,503,549
corporation
VALUE PARTNERS CLASSIC FUND Foreign corporation 0.8% 7,652,300
HTHK-MANULIFE CHINA VALUE FUND Foreign corporation 0.72% 6,858,138
First State Investment Management UK
Foreign corporation 0.67% 6,391,310
Limited－First State China A Share Fund
Domestic
Bosera Selection Stock Fund non-state-owned 0.63% 5,999,787
corporation
APS Asset Management Pte Ltd－APS China
Foreign corporation 0.58% 5,586,151
A Share Investment Fund
Shareholdings of top 10 non-restricted shareholders
Name of shareholder Number of Variety of shares
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
non-restricted
Variety Number
shares held
Zibo Lucheng Textile Investment Co., Ltd. 134,613,925 RMB common shares 134,613,925
DBS VICKERS (HONG KONG) LTD A/C CLIENTS 40,128,642 Domestically listed foreign shares 40,128,642
LYNAS ASIA FUND 16,014,521 Domestically listed foreign shares 16,014,521
VALUE PARTNERS HIGH-DIVIDEND STOCKS FUNDS 14,366,702 Domestically listed foreign shares 14,366,702
Everbright Pramerica Quantified Core Fund 11,503,549 RMB common shares 11,503,549
VALUE PARTNERS CLASSIC FUND 7,652,300 Domestically listed foreign shares 7,652,300
HTHK-MANULIFE CHINA VALUE FUND 6,858,138 Domestically listed foreign shares 6,858,138
First State Investment Management UK Limited－First State
6,391,310 RMB common shares 6,391,310
China A Share Fund
Bosera Selection Stock Fund 5,999,787 RMB common shares 5,999,787
APS Asset Management Pte Ltd－APS China A Share
5,586,151 RMB common shares 5,586,151
Investment Fund
MANULIFE GLOBAL FUND 5,076,540 Domestically listed foreign shares 5,076,540
Zibo Lucheng Textile Investment Co., Ltd. is the largest
shareholder of the Company and the actual controller. Tailun
(Thailand) Textile Co., Ltd. is the second largest shareholder as
Explanation on associated relationship or persons acting in well as sponsor of foreign capital of the Company. All of other
concert among the above-mentioned shareholders shareholders are people holding circulating A share or circulating
B share and the Company is not able to confirm whether there is
associated relationship or concerted action among other
shareholders.
Top 10 shareholders taking part in margin financing and
Naught
securities lending (if any)
Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes √ No
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. Transactional financial assets as at 31 Mar. 2014 stood at RMB 1,336,900.00, down 95.54% from
the opening amount, mainly because due transactional financial assets were delivered and the fair
value decreased.
2. Notes receivable as at 31 Mar. 2014 stood at RMB 70,415,267.17, down 44.16% from the
opening amount, mainly because some receivables were collected.
3. Accounts receivable as at 31 Mar. 2014 stood at RMB 193,456,631.31, down 31.02% from the
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
opening amount, mainly because some receivables were collected.
4. Engineering materials as at 31 Mar. 2014 stood at RMB 63,248,700.75, up 231.24% from the
opening amount, mainly because the equipment that had been bought in but not yet installed was
not yet transferred into fixed assets.
5. Payroll payable as at 31 Mar. 2014 stood at RMB 235,616,559.16, down 36.67% from the
opening amount, mainly because the annual bonuses for 2013 were paid in the reporting period.
6. Taxes and fares payable as at 31 Mar. 2014 stood at RMB 69,622,722.01, down 39.59% from the
opening amount, mainly because the city construction & maintenance tax and the educational
surcharges were paid in the reporting period.
7. Deferred income tax liabilities as at 31 Mar. 2014 stood at RMB 2,276,240.29, down 65.25%
from the opening amount, mainly because the taxable temporary difference arising from the fair
value changes of transactional financial assets decreased.
8. Business tax and surtaxes for the reporting period stood at RMB 8,112,449.96, up 45.61% from
the same period of last year, mainly because the city construction & maintenance tax, the
educational surcharges, etc. increased.
9. Financial expenses for the reporting period stood at RMB 8,115,706.19, down 39.57% from the
same period of last year, mainly because the loans decreased and the relevant interest expenses
decreased accordingly.
10. Asset impairment loss for the reporting period stood at RMB 4,972,099.09, down 49.52% from
the same period of last year, mainly because accounts receivable and other receivables decreased
and the relevant bad-debt provisions decreased accordingly.
11. Gain on fair value changes for the reporting period stood at RMB -28,794,020.00, down
322.29% from the same period of last year, mainly because due transactional financial assets were
delivered, resulting in the carryover of the previously recognized gain/loss on fair value changes,
and the fair value of transactional financial assets changed.
12. Investment gain for the reporting period stood at RMB 15,059,650.31, down 166.60% from the
same period of last year, mainly because of the gain/loss on the delivered transactional financial
assets.
13. Non-operating income for the reporting period stood at RMB 2,813,117.81, down 74.98% from
the same period of last year, mainly because the governmental subsidies received decreased.
14. Non-operating expense for the reporting period stood at RMB 1,019,563.59, up 86.77% from
the same period of last year, mainly because the loss on disposal of fixed assets increased.
II. Progress of significant events and analysis & explanations on their influence and solutions
From 12 Dec. 2013 to 31 Dec. 2013, Zibo Lucheng Textile Investment Co., Ltd. additionally
acquired 6,913,189 floating A-shares (000726) of the Company by way of centralized competitive
bidding via the securities trading system of Shenzhen Stock Exchange. Up to 17 Jan. 2014, the
additional acquisition rose to a total of 11,299,225 floating A-shares (000726) of the Company,
representing a stake of 1.18% in the Company, with the average price of the additional acquisition
being RMB 9.99/share. After the aforesaid additional acquisitions, Zibo Lucheng Textile
Investment Co., Ltd. held a total of 134,613,925 shares of the Company, representing a stake of
14.08% out of the total 955,800,496 shares of the Company. For details, see the relevant
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
announcements disclosed on Securities Times, Shanghai Securities News, Ta Kung Pao (HK) and
www.cninfo.com.cn dated 18 Jan. 2014.
Website index to the disclosed relevant
Overview of the significant event Date of disclosure
interim report
III. Commitments made by the Company or any shareholder with a shareholding over 5% in
the reporting period or such commitments made in previous period and carried down into the
reporting period
Commitm Contents of Date of Period of
Commitment Execution
ent maker commitment commitment commitment
Share reform commitment None None None None
Commitment made in an
acquisition report or a report None None None None
on equity changes
Commitment made in asset
None None None None
reorganization
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 line of
10 million meters of high-end jacquard for
female garments have already been fulfilled.
Lu Thai Investment
Commitment made in IPO 19 Dec. On 18 Oct. 2011, the 3rd temporary
Textile project of
or re-financing 2008 shareholders’ general meeting approved that
Co., Ltd. raised funds
RMB 140 million raised funds of this project
were transferred 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.
Commitment made to
minority shareholders of the None None None None
Company
Executed in time or not Yes
Specific reason for failing to None
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
fulfill the commitment and
the plan for the next step
IV. Predict the operating results of Jan.-Jun. 2014
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin
to the end of the next reporting period according to prediction, as well as explanations on the reasons:
□ Applicable √ Inapplicable
V. Investments in derivatives
Unit: RMB ten thousand yuan
Proportion
of the
Relate closing
Actual
d-part Impairme Closing investmen
Type of Initial Opening gain/loss
Relatio y Beginning Ending nt investme t amount
Operator derivative investment investmen in
n transac date date provision nt in the
investment amount t amount reporting
tion or (if any) amount Company’
period
not s closing
net assets
(%)
The
forward
commerci non-ass foreign 18 Sept.
No 152,962.18 28 Mar. 2013 98,449.79 39,921.1 6.01% 1,493.33
al bank ociate exchange 2014
settlement
Forward
commerci non-ass foreign 28 Feb.
No 19,143.86 1 Jan. 2014 0 0 12.64
al bank ociate exchange 2014
trading
Total 172,106.04 -- -- 98,449.79 39,921.1 6.01% 1,505.97
Capital source for derivative
Self-owned funds
investment
Cases involving lawsuit (if
No
applicable)
Disclosure date of the board
announcement approving the wealth 16 May 2013
management entrustment (if any)
Disclosure date of the general meeting
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
announcement approving the wealth
management entrustment (if any)
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.
2. Credit risk and liquidity risk:
Analysis on risks and control
When the contract matures, the Company couldn’t deliver as scheduled due to insufficient
measures of derivative products held
liquidity, and the counterparty or the Company couldn’t fulfill the contract due to other
in the reporting period (including but
aspects except the liquidity, which would cause credit risk and further economic losses for
not limited to market risk, liquidity
the Company.
risk, credit risk, operation risk, law
risk, 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 Proposal
on the Plan of Lu Thai Textile Co., Ltd. for Derivative Transactions in 2013 approved at the
28th Session of the 6th Board of Directors on 15 May 2013, 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
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
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 inter-bank spot RMB-dollar trading band from 1% to
2% since 17 Mar. 2014, 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. 2014, the Company held 8 undue financial derivative product contracts,
totaling US$ 64 million, all forward settlement contracts (the latest expiration before Sept.
Changes of market prices or fair
2014). The above financial derivative products accounted for 6.01% of the closing net
values in the reporting period of the
assets.
invested derivatives. And the analysis
2. From Jan. 2014 to Mar. 2014, the due financial derivative products of the Company
on the fair value of the derivatives
totally equaled to US$ 166.4967 million, which were all delivered on time and generated a
should include the specific use
gain of RMB 15.0597 million. The due forward settlement was US$ 146.60 million, which
methods and the relevant assumptions
were all delivered on time and generated a gain of RMB 14.9333 million. The due forward
and parameters.
foreign exchange trading amount equaled to US$19.8967 million, which was all delivered as
scheduled and generated a gain of RMB 126,400.
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
The Company’s independent directors Zhou Zhiji, Wang Lei Su Xin and Xu Jianjun,
Specific opinion from independent
concerning conducting derivatives business, have issued the following professional advice:
directors on the Company’s
we were of the opinion that it would strengthen the Company’s competitiveness to use
derivatives investment and risk
derivative transactions with focus on forward settlement and purchase as an effective tool to
control
avoid foreign exchange risks, to strengthen the relevant internal control and to carry out the
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
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.
VI. Researches, visits and interviews received in the reporting period
Main discussion
Time of Place of Way of Visitor and materials
Visitor
reception reception reception type provided by the
Company
Telephone Galaxy Securities Co., Ltd. Ma Li Yang Lan 2013 Annual
27 Mar. 2014 Institution
Communication Hua Xiaowei Report
Telephone 2013 Annual
27 Mar. 2014 Institution Ivy Asset Management Co., Ltd Sun Yuanjia
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution TAIKANG AMC Jinge
Communication Report
Telephone Shanghai Milestone Asset Management Co.Ltd. 2013 Annual
27 Mar. 2014 Institution
Communication Wengdi Report
Telephone 2013 Annual
27 Mar. 2014 Institution CHANGSHENG FUND Liu Yuxiu
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution SHANGHAI STRENGTHEN ASSET Ding Wenya
Communication Report
Telephone SHENYIN &WANGUO SECURITIES Wang 2013 Annual
27 Mar. 2014 Institution
Communication Liping Wu Yuanyi Report
Telephone 2013 Annual
27 Mar. 2014 Institution ANBANG ASSET Chen Xiaoyan
Communication Report
Telephone BAOYING FUND MANAGEMENT CO.,LTD. 2013 Annual
27 Mar. 2014 Institution
Communication Wang Qiong Report
Telephone 2013 Annual
27 Mar. 2014 Institution CHANG XIN ASSET MANAGEMENT Liu Liang
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution ORIENT SECURITIES Wang Hui
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution SOOCHOW FUND Shao Meiling
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution EVERBRIGHT PRAMERICA FUND Zhu Yufeng
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution EVERBRIGHT SECURITIES Liu Bing
Communication Report
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
Telephone 2013 Annual
27 Mar. 2014 Institution NATIONAL TRUST Shi Meiling
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution GUOTAI AMC Lu Jing
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution HUA AN FUND Yang Xingxing
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution HARFOR FUND Zhang Xuewei
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution SUNSHINE FUND Xu Da
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution HSBC JINTRUST FUND Qiu Dongrong
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution HSBC JINTRUST FUND Mang Chun
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution CHINA UNIVERSAL FUND Zheng Huilian
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution INVESCO GREAT WALL FUND Li Ran
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution MORGAN HUAXING FUND Zhan Jiao
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution BNY FUND Li Hui
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution PENGHUA FUND Li Huijie
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution CHINA INTERNATIONAL FUND Li Jiajia
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution CIB FUND Qiao Qian
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution INDUSTRIAL SECURITIES Shu Lihua
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution YINHUA FUND Wang Xiang
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution YINHUA FUND Chen Fan
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution YUANCHEN INVESTMENT Liu Ming
Communication Report
Telephone CHINA LIFE PENSION COMPANY LIMITED 2013 Annual
27 Mar. 2014 Institution
Communication Gao Yuanyuan Report
12
Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
Telephone 2013 Annual
27 Mar. 2014 Institution CHINA SECURITIES Huang Yangxia
Communication Report
Telephone 2013 Annual
27 Mar. 2014 Institution CITIC SECURITIES Luo Xiang
Communication Report
13
Report for the First Quarter of 2014 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 671,325,611.43 872,461,415.00
Transactional financial assets 1,336,900.00 29,949,120.00
Notes receivable 70,415,267.17 126,106,380.23
Accounts receivable 193,456,631.31 280,434,879.62
Accounts paid in advance 158,512,461.16 137,003,771.58
Dividend receivable
Other accounts receivable 57,697,565.92 68,608,410.00
Financial assets purchased under agreements to resell
Inventories 1,747,742,527.74 1,645,070,671.31
Non-current assets due within 1 year
Other current assets 40,805,120.26 34,030,201.42
Total current assets 2,941,292,084.99 3,193,664,849.16
Non-current assets:
Long-term accounts receivable
Long-term equity investment 67,442,600.00 67,442,600.00
Investing property
Fixed assets 4,385,419,580.88 4,454,201,264.50
Construction in progress 267,308,340.15 227,959,833.59
Engineering materials 63,248,700.75 19,094,482.53
Disposal of fixed assets
Intangible assets 353,471,380.12 352,846,664.24
R&D expense
Goodwill 20,613,803.29 20,613,803.29
Long-term deferred expenses 2,133,786.86 1,711,304.99
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
Deferred income tax assets 55,815,866.83 58,158,023.19
Other non-current assets 12,781,283.00 16,255,736.00
Total of non-current assets 5,228,235,341.88 5,218,283,712.33
Total assets 8,169,527,426.87 8,411,948,561.49
Current liabilities:
Short-term borrowings 505,809,403.24 648,664,954.85
Transactional financial liabilities 181,800.00
Notes payable 8,982,424.75 10,213,263.69
Accounts payable 296,141,145.16 400,053,679.69
Accounts received in advance 80,981,374.48 100,793,054.81
Employee’s compensation payable 235,616,559.16 372,062,834.99
Tax payable 69,622,722.01 115,248,378.73
Interest payable 1,057,959.48 1,499,475.06
Dividend payable 441,966.54 441,966.54
Other accounts payable 68,752,389.34 84,445,300.34
Non-current liabilities due within 1 year 86,129,400.00 85,356,600.00
Other current liabilities
Total current liabilities 1,353,717,144.16 1,818,779,508.70
Non-current liabilities:
Long-term borrowings 98,433,600.00 97,550,400.00
Bonds payable
Long-term payables 9,735,560.00 9,735,560.00
Special payables
Estimated liabilities
Deferred income tax liabilities 2,276,240.29 6,550,014.57
Other non-current liabilities 66,714,537.85 64,733,100.81
Total non-current liabilities 177,159,938.14 178,569,075.38
Total liabilities 1,530,877,082.30 1,997,348,584.08
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 955,800,496.00 955,800,496.00
Capital reserves 1,004,700,546.93 1,000,854,805.66
Less: Treasury stock
Specific reserves
Surplus reserves 659,538,411.25 659,538,411.25
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
Provisions for general risks
Retained profits 3,593,146,907.38 3,379,354,741.18
Foreign exchange difference -6,991,468.49 -7,494,320.36
Total equity attributable to owners of the Company 6,206,194,893.07 5,988,054,133.73
Minority interests 432,455,451.50 426,545,843.68
Total owners’ (or shareholders’) equity 6,638,650,344.57 6,414,599,977.41
Total liabilities and owners’ (or shareholders’) equity 8,169,527,426.87 8,411,948,561.49
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 413,144,719.56 505,709,597.03
Transactional financial assets 1,336,900.00 25,057,200.00
Notes receivable 47,767,601.27 93,356,553.66
Accounts receivable 208,104,562.82 265,740,714.49
Accounts paid in advance 269,465,752.11 198,115,786.71
Interest receivable
Dividend receivable
Other accounts receivable 25,642,507.59 33,075,155.68
Inventories 1,129,694,931.39 940,892,345.31
Non-current assets due within 1 year
Other current assets 19,010,085.76 3,711,653.08
Total current assets 2,114,167,060.50 2,065,659,005.96
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 1,121,458,891.94 1,101,936,804.88
Investing property
Fixed assets 2,606,988,978.71 2,652,488,993.89
Construction in progress 214,941,481.78 186,973,570.92
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
Engineering materials 44,480,982.73 9,040,050.06
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 227,963,322.04 229,829,628.31
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 33,936,699.07 35,041,084.44
Other non-current assets 5,406,401.00 5,406,401.00
Total of non-current assets 4,255,176,757.27 4,220,716,533.50
Total assets 6,369,343,817.77 6,286,375,539.46
Current liabilities:
Short-term borrowings 87,617,206.39 88,638,765.21
Transactional financial liabilities
Notes payable 5,607,826.76 5,474,558.65
Accounts payable 273,914,386.63 211,146,523.67
Accounts received in advance 44,469,711.08 38,413,307.22
Employee’s compensation payable 196,533,820.52 303,548,400.40
Tax payable 46,366,538.22 80,282,862.55
Interest payable 454,426.82 681,692.31
Dividend payable 441,966.54 441,966.54
Other accounts payable 13,634,688.26 21,956,228.99
Non-current liabilities due within 1 year 86,129,400.00 85,356,600.00
Other current liabilities
Total current liabilities 755,169,971.22 835,940,905.54
Non-current liabilities:
Long-term borrowings 98,433,600.00 97,550,400.00
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 200,535.00 3,758,580.00
Other non-current liabilities 30,975,836.50 31,144,621.51
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
Total non-current liabilities 129,609,971.50 132,453,601.51
Total liabilities 884,779,942.72 968,394,507.05
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 955,800,496.00 955,800,496.00
Capital reserves 1,009,580,990.51 1,007,207,486.75
Less: Treasury stock
Specific reserves
Surplus reserves 659,538,411.25 659,538,411.25
Provisions for general risks
Retained profits 2,859,643,977.29 2,695,434,638.41
Foreign exchange difference
Total owners’ (or shareholders’) equity 5,484,563,875.05 5,317,981,032.41
Total liabilities and owners’ (or shareholders’) equity 6,369,343,817.77 6,286,375,539.46
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. 2014 Jan.-Mar. 2013
I. Operating revenues 1,524,854,012.98 1,501,664,061.00
Including: Sales income 1,524,854,012.98 1,501,664,061.00
Interest income
Premium income
Handling charge and commission income
II. Total operating cost 1,255,227,267.11 1,273,001,103.95
Including: Cost of sales 1,059,292,161.99 1,096,398,693.44
Interest expenses
Handling charge and commission expenses
Surrenders
Net claims paid
Net amount withdrawn for the insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 8,112,449.96 5,571,295.31
18
Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
Selling and distribution expenses 45,674,167.84 39,212,494.00
Administrative expenses 139,004,880.22 121,713,499.54
Financial expenses 8,115,706.19 13,430,601.61
Asset impairment loss -4,972,099.09 -3,325,479.95
Add: Gain/(loss) from change in fair value (“-” means loss) -28,794,020.00 -6,818,581.00
Gain/(loss) from investment (“-” means loss) 15,059,650.31 5,648,750.00
Including: share of profits in associates and joint ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) 255,892,376.18 227,493,126.05
Add: non-operating income 2,813,117.81 11,241,617.21
Less: non-operating expense 1,019,563.59 545,889.95
Including: loss from non-current asset disposal
IV. Total profit (“-” means loss) 257,685,930.40 238,188,853.31
Less: Income tax expense 37,984,156.38 38,120,330.75
V. Net profit (“-” means loss) 219,701,774.02 200,068,522.56
Including: Net profit achieved by combined parties before the
combinations
Attributable to owners of the Company 213,792,166.20 192,567,560.95
Minority shareholders’ income 5,909,607.82 7,500,961.61
VI. Earnings per share -- --
(I) Basic earnings per share 0.22 0.2
(II) Diluted earnings per share 0.22 0.2
Ⅶ. Other comprehensive incomes 502,851.87 -182,846.71
Ⅷ. Total comprehensive incomes 220,204,625.89 199,885,675.85
Attributable to owners of the Company 214,295,018.07 192,384,714.24
Attributable to minority shareholders 5,909,607.82 7,500,961.61
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. 2014 Jan.-Mar. 2013
I. Operating revenues 1,027,387,778.45 994,738,948.52
Less: operating costs 708,449,373.42 713,356,254.80
19
Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
Business taxes and surcharges 5,172,792.21 3,467,691.96
Distribution expenses 20,428,081.26 14,705,391.98
Administrative expenses 97,433,212.33 82,748,786.16
Financial costs -1,286,965.86 3,359,144.47
Impairment loss -3,046,160.73 -923,303.50
Add: gain/(loss) from change in fair value (“-” means
-23,720,300.00 -7,423,141.00
loss)
Gain/(loss) from investment (“-” means loss) 12,022,210.27 6,706,800.00
Including: income form investment on associates
and joint ventures
II. Business profit (“-” means loss) 188,539,356.09 177,308,641.65
Add: non-business income 2,090,225.37 4,627,596.83
Less: non-business expense 866,262.37 511,337.48
Including: loss from non-current asset disposal
III. Total profit (“-” means loss) 189,763,319.09 181,424,901.00
Less: income tax expense 25,553,980.21 26,683,732.86
IV. Net profit (“-” means loss) 164,209,338.88 154,741,168.14
V. Earnings per share -- --
(I) Basic earnings per share 0.17 0.16
(II) Diluted earnings per share 0.17 0.16
VI. Other comprehensive income
VII. Total comprehensive income 164,209,338.88 154,741,168.14
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. 2014 Jan.-Mar. 2013
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 1,687,365,414.77 1,599,080,890.04
Tax refunds received 44,724,303.43 39,897,008.72
Other cash received relating to operating activities 21,602,693.31 17,970,037.27
Subtotal of cash inflows from operating activities 1,753,692,411.51 1,656,947,936.03
Cash paid for goods and services 1,069,481,319.44 1,022,143,727.10
20
Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
Cash paid to and for employees 430,633,920.43 394,916,573.82
Various taxes paid 120,108,409.19 72,203,491.75
Other cash payment relating to operating activities 77,693,523.62 62,597,380.96
Subtotal of cash outflows from operating activities 1,697,917,172.68 1,551,861,173.63
Net cash flows from operating activities 55,775,238.83 105,086,762.40
II. Cash flows from investing activities:
Cash received from withdrawal of investments
Cash received from return on investments
Net cash received from disposal of fixed assets, intangible assets and other
1,564,743.67 965,305.77
long-term assets
Net cash received from disposal of subsidiaries or other business units
Other cash received relating to investing activities 16,628,598.97 6,713,891.52
Subtotal of cash inflows from investing activities 18,193,342.64 7,679,197.29
Cash paid to acquire fixed assets, intangible assets and other long-term assets 122,361,158.19 81,985,283.89
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 122,361,158.19 81,985,283.89
Net cash flows from investing activities -104,167,815.55 -74,306,086.60
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Including: Cash received from minority shareholder investments by subsidiaries
Cash received from borrowings 178,448,809.09 116,174,262.46
Cash received from issuance of bonds
Other cash received relating to financing activities 12,000,000.00 58,155,266.00
Subtotal of cash inflows from financing activities 190,448,809.09 174,329,528.46
Repayment of borrowings 322,265,867.92 452,259,927.15
Cash paid for interest expenses and distribution of dividends or profit 7,025,184.46 12,030,189.31
Including: dividends or profit paid by subsidiaries to minority shareholders
Other cash payments relating to financing activities 12,000,000.00 43,600,000.00
Sub-total of cash outflows from financing activities 341,291,052.38 507,890,116.46
Net cash flows from financing activities -150,842,243.29 -333,560,588.00
IV. Effect of foreign exchange rate changes on cash and cash equivalents -592,871.45 -569,196.29
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
V. Net increase in cash and cash equivalents -199,827,691.46 -303,349,108.49
Add: Opening balance of cash and cash equivalents 869,909,505.89 900,182,215.72
VI. Closing balance of cash and cash equivalents 670,081,814.43 596,833,107.23
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. 2014 Jan.-Mar. 2013
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 1,135,988,900.43 1,029,762,995.99
Tax refunds received 28,058,174.14 20,355,786.53
Other cash received relating to operating activities 1,457,351.16 6,464,969.62
Subtotal of cash inflows from operating activities 1,165,504,425.73 1,056,583,752.14
Cash paid for goods and services 733,603,575.84 699,236,727.34
Cash paid to and for employees 323,138,484.20 301,098,089.29
Various taxes paid 70,900,289.12 35,190,400.05
Other cash payment relating to operating activities 36,859,914.06 20,387,689.65
Subtotal of cash outflows from operating activities 1,164,502,263.22 1,055,912,906.33
Net cash flows from operating activities 1,002,162.51 670,845.81
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 and
1,563,943.67 965,305.77
other long-term assets
Net cash received from disposal of subsidiaries or other business units
Other cash received relating to investing activities 13,772,550.56 7,243,650.28
Subtotal of cash inflows from investing activities 15,336,494.23 8,208,956.05
Cash paid to acquire fixed assets, intangible assets and other long-term
85,844,328.08 45,717,783.74
assets
Cash paid for investment 19,343,283.56
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 105,187,611.64 46,817,783.74
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Report for the First Quarter of 2014 of Lu Thai Textile Co., Ltd.
Net cash flows from investing activities -89,851,117.41 -38,608,827.69
III. Cash flows from financing activities:
Cash received from capital contributions
Cash received from borrowings 26,096,206.39 62,798,000.00
Cash received from issuance of bonds
Other cash received relating to financing activities 155,266.00
Subtotal of cash inflows from financing activities 26,096,206.39 62,953,266.00
Repayment of borrowings 26,529,242.39 232,031,184.42
Cash paid for interest expenses and distribution of dividends or profit 1,806,334.37 3,647,506.73
Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities 28,335,576.76 235,678,691.15
Net cash flows from financing activities -2,239,370.37 -172,725,425.15
IV. Effect of foreign exchange rate changes on cash and cash equivalents -168,440.09 180,142.60
V. Net increase in cash and cash equivalents -91,256,765.36 -210,483,264.43
Add: Opening balance of cash and cash equivalents 503,157,687.92 559,095,505.76
VI. Closing balance of cash and cash equivalents 411,900,922.56 348,612,241.33
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
This report is not audited.
Lu Thai Textile Co., Ltd.
Chairman of the Board: Liu Shizhen
25 Apr. 2014
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