Lu Thai Textile Co., Ltd. Abstract of Semi-annual Report 2016
Stock code: 000726, 200726 Stock name: Lu Thai A, Lu Thai B Announcement No.: 2016-041
Lu Thai Textile Co., Ltd.
Abstract of Semi-annual Report 2016
1. Important notes
The 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 the Abstract on http://www.cninfo.com.cn, the website of the Shenzhen Stock Exchange or any other
websites designated by the CSRC.
The Abstract has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the
two versions, the Chinese version shall prevail.
Corporate profile
Stock name Lu Thai A, Lu Thai B Stock code 000726, 200726
Changed stock name (if any) N/A
Stock exchange Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Qin Guiling Zheng Weiyin, Li Kun
Tel. 0533-5266188 0533-5285166
Fax 0533-5418805 0533-5418805
E-mail qinguiling@lttc.com.cn wyzheng@lttc.com.cn，likun@lttc.com.cn
2. Financial highlights and shareholder changes
(1) Financial highlights
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year due to change in
accounting policies or correction of accounting errors
□ Yes √ No
Same period of last
Reporting Period +/- (%)
year
Operating revenues (RMB) 2,831,326,773.03 2,941,835,897.16 -3.76%
Net profit attributable to shareholders of the Company
344,641,184.73 344,521,516.72 0.03%
(RMB)
Net profit attributable to shareholders of the Company
333,236,862.51 308,604,457.41 7.98%
excluding exceptional profit and loss (RMB)
Net cash flows from operating activities (RMB) 563,407,347.43 362,304,624.13 55.51%
Basic earnings per share (RMB/share) 0.37 0.36 2.78%
Diluted earnings per share (RMB/share) 0.37 0.36 2.78%
Weighted average return on equity (%) 5.10% 5.10% 0.00%
As at the end of the As at the end of last
+/- (%)
Reporting Period year
Total assets (RMB) 9,021,235,390.97 9,091,170,499.22 -0.77%
Net assets attributable to shareholders of the Company
6,508,090,698.05 6,837,113,075.58 -4.81%
(RMB)
(2) Shareholdings of the top 10 ordinary shareholders
Unit: share
Total number of ordinary 64,672
shareholders at the end of the
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Lu Thai Textile Co., Ltd. Abstract of Semi-annual Report 2016
Reporting Period
Shareholdings of the top 10 ordinary shareholders
Pledged or frozen
Number of Number of shares
Nature of Shareholdin
Name of shareholder ordinary restricted ordinary
shareholder g percentage Numbe
shares held shares held Status
r
Domestic
ZIBO LUCHENG TEXTILE
non-state-owned 14.69% 140,353,583
INVESTMENT CO., LTD.
corporation
TAILUN (THAILAND) TEXTILE CO., Foreign
12.37% 118,232,400 118,232,400
LTD. corporation
CENTRAL HUIJIN ASSETS State-owned
2.13% 20,315,300
MANAGEMENT CO., LTD. corporation
T.ROWE PRICE INTL DISCOVERY Foreign
2.09% 19,948,219
FUND corporation
Domestic
CHINA SECURITIES FINANCE
non-stated-owned 1.64% 15,679,091
CORPORATION LIMITED
corporation
Foreign
LYNAS ASIA FUND 1.46% 14,000,000
corporation
HUA’AN NEW SILK ROAD THEME Domestic
EQUITY SECURITIES INVESTMENT non-stated-owned 1.06% 10,110,000
FUND corporation
FIRST STATE INVESTMENTS
Foreign
ICVC-FIRST STATE GREATER CHINA 0.96% 9,215,168
corporation
GROWTH FUND
CENTRAL EUROPE VALUE FOUND Domestic
EQUITY SECURITIES INVESTMENT non-stated-owned 0.73% 6,949,763
FUND corporation
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
Related or act-in-concert parties among the shareholders
foreign capital of the Company. All of other shareholders are people
above
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 conducting securities margin trading (if any) N/A
(3) Shareholdings of the top 10 preference shareholders
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(4) Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Lu Thai Textile Co., Ltd. Abstract of Semi-annual Report 2016
3. Discussion and analysis by the management
In the first half of 2016, affected by the macro economic environment, the textile & apparel sector saw a slow recovery in
fundamentals and export with weak consumer demand. Under such circumstances, we continued to base ourselves on the reality of
the industry and the Company, deepen our excellent performance management model, promote our Lu Thai Production System
(LTPS) and proactively carry forward our global planning. Meanwhile, we accelerated the in-depth fusion of industrialization and
informatization, pushed forward innovation as a driving force and strengthened corporate culture improvement. As a result, we
managed to maintain a healthy and steady development trend.
For the Reporting Period, the Company achieved operating revenues of RMB2.831 billion, operating profit of RMB419 million, net
profit attributable to the shareholders of the Company of RMB345 million and net profit attributable to the shareholders of the
Company of RMB333 million after excluding the exceptional profit and loss, down 3.76%, up 2.87%, 0.03% and 7.98% respectively
from the same period of last year. No changes occurred to the main business, the main profit sources and structure of the Company.
During the Reporting Period, the Company was named as “2015 Top 20 Enterprises in Chinese Printing and Dyeing Industry” by
China Dyeing and Printing Industry Association, “Chinese Exports Quality and Safety Demonstration Enterprise” by State General
Administration of the People’s Republic of China for Quality Supervision and Inspection and Quarantine, “Top 100 Enterprises in
Chinese Garment Industry in 2015” by China National Garment Association, “The Province's Trade Union Labor Protection
Demonstration Enterprise in Light Textile Industry” by Shandong Province Light Textile Industrial Trade Union Committee. “Lu
Thai” trademark was rated as a famous brand of Shandong Province by Administration for Industry and Commerce of Shandong
Province. Lu Thai Group was selected as China Cotton Textile Association top 100 enterprises of the main business revenues in
cotton textile industry in 2015 (fourth place), and top 10 enterprises of main business revenues in yarn-dyed fabric industry (first).
During the Reporting Period, the Company continually carried out scientific research and innovation, constantly developed new
technologies and processes, increased customer promotion and service, made researches on customized service for each key customer
in domestic and foreign markets, and regularly organized new product order meeting and review meeting, and also held new product
design and development seminars with business segments and brand promotion centers from time to time. With the end-market’s
continuously increased demand for leisure products, the Company utilized advantage resources to intensify the development of jeans,
casual washing products, and market acceptance and customer recognition substantially increased. During the Reporting Period, 28
patents were declared and accepted, of which 23 patents were authorized. The Company also participated in enacting 1 industry
standard. Up to now, it altogether won 44 prizes in the national and provincial level, including 1 first prize and 2 second prizes of
National Scientific and Technological Awards and 8 first prizes at the provincial stage. 341 patents were applied and accepted, of
which 234 were authorized; the Company also participated in or took charge of enacting 29 standards.
The Company popularizes the results of market services upgrading year to enhance the brand influence. The Company took full
advantage of its Milan Office in Italy and the subsidiary in America to internationalize its creativity and design, established
communication mechanism with strategic customers, and participated in the pre-trend planning actively and offered extended design
services. The Company established a direct connection with designers of key customers through the market promotion conferences
convened in Britain, Turkey, and continued to strengthen communication with designers of key customers in America and Asia so as
to promote closer cooperation between the two sides and to recommend natural fiber series of new products to customers. Through
New York and Milan promotion conferences and Shanghai fabric promotion conferences, it communicated adequately with
customers of OXFORD, TAG, TMW, SEIDENSTICKER United States, Itochu, PVH and so on, and maintained a good relationship
of cooperation. During Reporting Period, the Company designed 1568 patterns for key customers, provided 7368 colors, and
completed the 2017 spring and summer trend of design including a total of 100 series, 3751 colors.
During the Reporting Period, the Company continued promoting the brand-building and marketing network construction. Beijing
Lutai Youxian E-Commerce Co., Ltd, a subsidiary of Lu Thai (“UTAILOR Jun Yi” high-end custom platform
(www.utailor.com.cn)), took advantage of the Company’s manufacturing technology in the whole industry chain and quality
guarantee and so on, and adopted “place order online and conduct measurement by visiting the customers”O2O mode. With
convenient booking and order by Utailor, Vshop, Jingdong flagship stores and 400 calls and other means, it provides consumers with
tailor-made service for high-quality shirt .Since “UTAILORE”, one of its high-end men’s clothing was pushed to the market, the
number of customers and to re-purchase rate of old customers is rising consistently. Now, its business covers the first-tire cities,
including Beijing, Shanghai, Shenzhen and Guangzhou, which paves the way for the promotion of its garment brands.
At the current stage, Lu Thai, with natural fabric as its flagship, multi-component functional fiber fabric as its spearhead,
wash-and-wear non-ironing technology as its core competency, the latest consumption trend as its guidance and internationalized
industrial manufacturing as its basis, is sparing every effort to attain a global integrated development, so as to ensure its leading
position in the yarn-dyed shirt fabric sector.
4. Matters related to financial reporting
(1) Explain any changes in the accounting policies, accounting estimates and measurement methods as
compared with the financial reporting of last year
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Lu Thai Textile Co., Ltd. Abstract of Semi-annual Report 2016
(2) Explain any retroactive restatements due to correction of significant accounting errors in the Reporting
Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Explain any changes in the consolidation scope as compared with the financial reporting of last year
√ Applicable □ Not applicable
Lu An Garments Co., Ltd. was incorporated in the Reporting Period as a new wholly-owned subsidiary of the Company.
(4) Explanation of the Board of Directors and the Board of Supervisors concerning the “non-standard”
auditor’s report issued by the CPAs firm for the Reporting Period
□ Applicable √ Not applicable
Board Chairman: Liu Zibin
Lu Thai Textile Co., Ltd.
31 August 2016
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