Abstract of the 2014 Semi-annual Report of Luthai Textile Co., Ltd.
Stock code: 000726, 200726 Stock abbreviation: LTA, LTB Announcement No.: 2014-030
Luthai Textile Co., Ltd.
Abstract of the 2014 Semi-annual Report
1. Important reminders
This abstract is based on the full text of the semi-annual report. For more details, investors are suggested to read the full text
disclosed at the same time with this abstract on http://www.cninfo.com.cn, the website of Shenzhen Stock Exchange or any other
website designated by CSRC.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version
shall prevail.
Company profile
Stock abbreviation LTA, LTB Stock code 000726, 200726
Stock abbreviation after change (if
N/A
any)
Stock exchange listed with Shenzhen Stock Exchange
Contact information Company Secretary Securities Affairs Representative
Name Qin Guiling Zheng Weiyin
Tel. 0533-5285166 0533-5285166
Fax 0533-5418805；5282188-234 0533-5418805
E-mail qinguiling@lttc.com.cn wyzheng@lttc.com.cn
2. Financial highlights and change of shareholders
（1）Financial highlights
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
Same period of last
Reporting period YoY +/-（％）
year
Operating revenues (RMB Yuan) 3,114,226,581.62 3,060,495,255.17 1.76%
Net profit attributable to shareholders of the Company (RMB
476,880,256.93 416,175,890.38 14.59%
Yuan)
Net profit attributable to shareholders of the Company after
475,996,558.52 393,419,324.10 20.99%
extraordinary gains and losses (RMB Yuan)
Net cash flows from operating activities (RMB Yuan) 399,042,563.87 490,746,920.17 -18.69%
Basic EPS (RMB Yuan/share) 0.50 0.43 16.28%
Diluted EPS (RMB Yuan/share) 0.50 0.43 16.28%
Weighted average ROE (%) 7.81% 7.60% 0.21%
As at the end of the As at the end of last
+/-（％）
reporting period year
Total assets (RMB Yuan) 8,129,457,717.51 8,411,948,561.49 -3.36%
Net assets attributable to shareholders of the Company (RMB
6,106,473,928.72 5,988,054,133.73 1.98%
Yuan)
（2） Shareholdings of the top 10 common shareholders
Total number of common 85,303
shareholders at the end of the
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Abstract of the 2014 Semi-annual Report of Luthai Textile Co., Ltd.
reporting period
Shareholdings of the top 10 common shareholders
Shareholdi Pledged or frozen
Total shares Number of shares
Nature of ng
Name of shareholder held at the restricted shares
shareholder percentage Status of Number of
period-end held
(%) shares shares
Domestic
Zibo Lucheng Textile Investment Co.,
non-state-owned 14.68% 140,353,583 Pledged 22,727,200
Ltd.
corporation
Foreign
Tailun Textile Co., Ltd. 12.37% 118,232,400 118,232,400
corporation
DBS VICKERS (HONG KONG) Foreign
0.04% 36,228,642
LTDA/C CLIENTS corporation
Foreign
LYNAS ASIA FUND 1.82% 17,364,475
corporation
VALUE PARTNERS HIGH-DIVIDEND Foreign
1.72% 16,411,865
STOCKS FUNDS corporation
Everbright prudential measurement of
Other 1.20% 11,503,549
securities investment fund
GUOTAI JUNAN Foreign
0.91% 8,670,480
SECURITIES(HONGKONG) LIMITED corporation
Foreign
VALUE PARTNERS CLASSIC FUND 0.85% 8,156,383
corporation
First State Investment Management
Foreign
(England) Co., Ltd.－First State China A 0.79% 7,563,611
corporation
share fund
HTHK-MANULIFE CHINA VALUE Foreign
0.72% 6,858,138
FUND corporation
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 well as sponsor of
Explanation on associated relationship or persons acting in
foreign capital of the Company. All of other shareholders are people
concert among the above-mentioned shareholders
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.
Shareholders taking part in margin financing and securities
Naught
lending (if any)
（3）Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
The controlling shareholder did not change in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Inapplicable
The actual controller did not change in the reporting period.
3. Discussion and analysis by the management
In the reporting period, the global economy remained in a slow recovery. The textile industry still faced low international demand,
slow growth of domestic demand, rising costs of production factors, etc. Under the circumstances, we gave full play to our
competitiveness in our full-length industrial chain, insisted on independent R&D and innovation, thoroughly carried out the excellent
performance management and proactively carried forward the Luthai Production System (LTPS). The technology innovation, cost
control, market expansion, brand building, informationization, corporate culture development, etc. progressed in a healthy and stable
way. And the operating results steadily improved in the reporting period.
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Abstract of the 2014 Semi-annual Report of Luthai Textile Co., Ltd.
For the reporting period, the Company achieved operating revenues of RMB 3.114 billion, operating profit of RMB 553 million, net
profit attributable to common share holders of RMB 477 million and net profit attributable to shareholders of the Company of RMB
476 million after deducting extraordinary gains and losses, up 1.76%, 11.45%, 14.59% and 20.99% respectively from the same
period of last year.
During the reporting period, there were no change in the main business of the Company, main profit source and composition.
In the reporting period, we decided to incorporate a wholly-funded subsidiary in Burma after we had incorporated a Cambodian
subsidiary to further improve the overseas industry chain, avoid the rising labor cost in China and cultivate international managerial
talents.
In the reporting period, we were granted the “China Industrial Award” by China Federation of Industrial Economics. Meanwhile, on
the “2014 China Industrial Enterprise Social Responsibility Report Press Conference” co-organized by the Ministry of Industry and
Information Technology of China, the Industrial Development Organization of the United Nations and China Federation of Industrial
Economics, we were among the first to be given the title “China Industrial Enterprise Social Responsibility Fulfillment Five-star
Enterprise (2014)”. In the first listed company awarding ceremony hosted by Sina Finance, we were honored as “The Listed
Company Attaching the Greatest Importance to Returns for Shareholders in 2013”. The Trade Union of the Company was one of the
winners in the 2013 National “Ankang Cup” Contest co-hosted by All China Federation of Trade Unions and the State
Administration of Work Safety. Besides, we were granted “The Shandong Enterprise Management Award” by Shan Dong Economic
and Information Technology Committee.
During the reporting period, facing the severe situations of international and domestic markets, we insisted on gathering internal
strength, continued to conduct research and innovation, promoted the research and development ability and strengthened the
differentiation of product development. At the same time, we enhanced cooperation among R&D, design and marketing personnel,
and input more efforts in product development and marketing to satisfy more and more individualized needs of the customers. We
launched 12 series of new products in the reporting period, which were introduced to the market swiftly. Up to the end of the
reporting period, 174 patent applications of the Company were accepted, including 58 invention patents, 109 utility model patents
and 7 design patents. Among them, 122 patents were successfully authorized, including 18 invention patents, 97 utility model patents
and 7 design patents. We have been accumulatively granted 30 state and provincial awards, including 2 state second prizes for
technology progress and 8 provincial prizes for technology progress with the latter comprising 4 first prizes and 1 second prize. We
have also been granted 20 technology progress prizes by China National Textile and Apparel Council, including 3 first prizes and 8
second prizes. We undertook 8 technology programs at the provincial level or above and 9 significant research programs at the state
and provincial levels. And we also participated or organized the formulation of 19 sets of standards, including 5 state ones and 14
industry ones.
In the reporting period, we carried on with brand and marketing network development. We co-incorporated “Beijing Luthai Youqian
E-Commerce Co., Ltd.” with Beijing Bishibo E-Commerce Consulting Co., Ltd., combining our competitive edges in full industrial
chain manufacture technique, quality assurance, etc. with emerging technologies such as 3D modeling and internet, as well as
combining the online marketing platform and the offline experience stores, to provide highly cost-effective shirts with individualized
design and quality service for consumers. Meanwhile, in customization, we vigorously promoted design by software, business flow
re-arrangement, training of shopping guides for physical stores, process reengineering, production infrastructure, etc. In terms of shirt
fabrics, we introduced our spring and summer products for 2015 to customers from all over the world at Shanghai Spring Fabric
Exhibition, Milan Showcase and some other activities. And our products were recognized by more customers, which helped promote
the influence and reputation of our brand. In the reporting period, we completed the development of fabrics for the autumn and
winter of 2015, including 34 specifications and nearly 3,000 designs. We also worked with some major customers in product
designing, promoted international exchange among designers and improved their design level. In the future, we will insist on the dual
brand marketing strategy and keep the multi-brand development patter with clear brand positioning, hierarchical promotion and
outstanding quality, to demonstrate the brand concept of “fit and satisfactory”, and constantly attract consumers’ attention and
recognition.
4. Matters related to financial reporting
(1) Explain change of the accounting policies, accounting estimates and measurement methods as compared
with the financial reporting of last year
□ Applicable √ Inapplicable
The accounting policies, accounting estimates or measurement methods did not change in the reporting period.
(2) Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
□ Applicable √ Inapplicable
No correction of significant accounting errors in the reporting period.
(3) Explain change of the consolidation scope as compared with the financial reporting of last year
√ Applicable □ Inapplicable
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Abstract of the 2014 Semi-annual Report of Luthai Textile Co., Ltd.
There were three controlled subsidiaries included into the consolidation scope, of which Luthai (USA) Co., Ltd. and Luthai
(Cambodia) Co., Ltd. were wholly owned subsidiaries, and Beijing Luthai Youxian E-commerce Co., Ltd., which was invested and
founded with Beijing Bishibo E-commerce Consulting Co., Ltd., was controlled subsidiary which held 90% of the shares. To be
specific, on 7 Aug. 2013, the Company held the 3 rd Session of the 7th Board of Directors, which reviewed and approved the proposal
on investing and founding Luthai (USA) Co., Ltd., which was of 100% of the investment; On 2 Dec. 2013, the Company held the 6 th
Session of the 7th Board of Directors, which reviewed and approved the proposal on investing and founding Luthai (Cambodia) Co.,
Ltd., which was of 100% of the investment; On 15 May 2014, the Company held the 10 th Session of the 7th Board of Directors, which
reviewed and approved the proposal on jointly setting up Beijing Luthai Youxian E-commerce Co., Ltd. with Beijing Bishibo
E-commerce Consulting Co., Ltd., which was of 90% of the investment.
(4) Explanation of the Board of Directors and the Supervisory Committee concerning the “non-standard
audit report” issued by the CPAs firm for the reporting period
□ Applicable √ Inapplicable
Chairman of the Board:
Luthai Textile Co., Ltd.
13 August 2014
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