Lu Thai Textile Co., Ltd. Third Quarter Report 2016
LU THAI TEXTILE CO., LTD.
THIRD QUARTER REPORT 2016
October 2016
1
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Section I Important Statements
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.
All directors have attended the board session for reviewing this report.
Liu Zibin, 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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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Section II Financial Highlights & Shareholder Changes
I Highlights of accounting data and financial indicators
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
30 September 2016 31 December 2015 +/- (%)
Total assets (RMB) 8,917,997,686.72 9,091,170,499.22 -1.90%
Net assets attributable to shareholders
6,694,781,216.36 6,837,113,075.58 -2.08%
of the Company (RMB)
January-September
July-September 2016 YoY +/- (%) YoY +/- (%)
2016
Operating revenues (RMB) 1,433,914,063.96 -8.64% 4,265,240,836.99 -5.46%
Net profit attributable to shareholders of
236,519,891.59 15.75% 581,161,076.32 5.88%
the Company (RMB)
Net profit attributable to shareholders of
the Company excluding exceptional 222,917,425.85 18.00% 556,154,288.37 11.79%
profit and loss (RMB)
Net cash flows from operating activities
-- -- 1,091,235,207.84 30.92%
(RMB)
Basic earnings per share (RMB/share) 0.25 19.05% 0.62 8.77%
Diluted earnings per share (RMB/share) 0.25 19.05% 0.62 8.77%
Weighted average return on equity (%) 3.55% 0.66% 8.65% 0.66%
Unit: RMB
Item January-September 2016 Note
Profit/loss on disposal of non-current assets (including offset amount of asset
-7,370,719.26
impairment provisions)
Government grants charged to the profit/loss for the Reporting Period (except for the
government grants closely related to the business of the Company and given at a fixed 24,358,681.93
quota or amount in accordance with the State’s uniform 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
3,442,956.85
assets and tradable financial liabilities and financial assets available for sales, except
for effective hedging related with normal businesses of the Company
Non-operating incomes and expenses other than the above 4,137,517.15
Less: Income tax effects -2,576,445.85
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Minority interests effects (after tax) 2,138,094.57
Total 25,006,787.95 --
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Profit and Loss,
or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Total number of shareholders and shareholdings of top 10 shareholders at the period-end
1. Total number of ordinary shareholders and preference shareholders who had resumed their voting right
& shareholdings of top 10 shareholders at the period-end
Unit: share
Total number of ordinary Total number of preference shareholders who had
shareholders at the end of the 60,734 resumed their voting right at the end of the 0
Reporting Period Reporting Period (if any)
Shareholdings of top 10 shareholders
Pledged or frozen
Shareholdi Number of
Nature of Number of shares
Name of shareholder ng restricted shares
shareholder shares held Numbe
percentage held Status
r
Domestic
Zibo Lucheng Textile Investment Co., Ltd. non-state-owned 15.21% 140,353,583
corporation
Foreign
Tailun Textile Co., Ltd. 12.82% 118,232,400 118,232,400
corporation
State-owned
Central Huijin Investment Co., Ltd. 2.20% 20,315,300
corporation
Foreign
T.ROWE PRICE INTL DISCOVERY FUND 2.16% 19,948,219
corporation
Domestic
CHINA SECURITIES FINANCE
non-state-owned 1.70% 15,679,091
CORPORATION LIMITED
corporation
Foreign
LYNAS ASIA FUND 1.52% 14,000,000
corporation
Foreign
BNP Paribas SA - Self-owned funds 1.12% 10,330,698
corporation
HUA AN NEW SILK ROAD THEME Domestic
1.10% 10,110,000
EQUITY SECURITIES INVESTMENT FUND non-state-owned
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
corporation
Domestic
Remarkable Wealth Dividend Value Stock
non-state-owned 1.06% 9,765,753
Products
corporation
FIRST STATE INVESTMENTS ICVC-FIRST Foreign
0.87% 8,019,082
STATE GREATER CHINA GROWTH FUND corporation
Shareholdings of top 10 non-restricted shareholders
Number of Type of shares
non-restricted
Name of shareholder
shares held at the Type Number
period-end
RMB ordinary
Zibo Lucheng Textile Investment Co., Ltd. 140,353,583 140,353,583
share
RMB ordinary
Central Huijin Investment Co., Ltd. 20,315,300 20,315,300
share
Domestically
T.ROWE PRICE INTL DISCOVERY FUND 19,948,219 listed foreign 19,948,219
share
RMB ordinary
CHINA SECURITIES FINANCE CORPORATION LIMITED 15,679,091 15,679,091
share
Domestically
LYNAS ASIA FUND 14,000,000 listed foreign 14,000,000
share
RMB ordinary
BNP Paribas SA - Self-owned funds 10,330,698 10,330,698
share
HUA AN NEW SILK ROAD THEME EQUITY SECURITIES RMB ordinary
10,110,000 10,110,000
INVESTMENT FUND share
RMB ordinary
Remarkable Wealth Dividend Value Stock Products 9,765,753 9,765,753
share
Domestically
FIRST STATE INVESTMENTS ICVC-FIRST STATE GREATER CHINA
8,019,082 listed foreign 8,019,082
GROWTH FUND
share
Domestically
HTHK-MANULIFE CHINA VALUE FUND 6,858,138 listed foreign 6,858,138
share
Zibo Lucheng Textile Investment Co., Ltd. is the
largest shareholder of the Company and the actual
Related or act-in-concert parties among the shareholders above controller. Tailun (Thailand) Textile Co., Ltd. is the
second largest shareholder as well as sponsor of
foreign capital of the Company. All of other
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
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 ordinary shareholders conducting securities margin trading (if any) N/A
Did any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company conduct any
promissory repo during the Reporting Period?
□ Yea √ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top 10 of them at the period-end
□ Applicable √ Not applicable
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Section III Significant Events
I Changes in main accounting statement items and financial indicators in the Reporting
Period, as well as reasons for the changes
√ Applicable □ Not applicable
(1) Notes receivable as at 30 September 2016 stood at RMB69,992,715.25, down 47.43% from the year-beginning amount, mainly
because bank acceptance bills were endorsed and paid to others and due L/Cs were honored.
(2) Interest receivable as at 30 September 2016 stood at RMB0.00, down 100.00% from the year-beginning amount, mainly because
accrued interest income was received.
(3) Other accounts receivable as at 30 September 2016 stood at RMB44,545,219.74, down 37.10% from the year-beginning amount,
mainly because export tax rebates receivable were received.
(4) Other current assets as at 30 September 2016 stood at RMB33,622,381.18, down 41.42% from the year-beginning amount,
mainly because the prepayment for B-share buyback and the input VAT to be deducted decreased.
(5) Construction in progress as at 30 September 2016 stood at RMB396,575,486.54, up 93.36% from the year-beginning amount,
mainly because the inputs to the Lu Thai (Vietnam) yarn-dyed fabric project and the Lu An Garments project increased.
(6) Engineering materials as at 30 September 2016 stood at RMB69,756,844.30, up 1003.79% from the year-beginning amount,
mainly because the to-be-installed equipment of Lu Thai (Vietnam) increased.
(7) Long-term deferred expenses as at 30 September 2016 stood at RMB113,055,639.73, up 32.81% from the year-beginning amount,
mainly because the land rental expenses of Lu Thai (Vietnam) and Lu An Garments increased.
(8) Financial liabilities at fair value through profit/loss as at 30 September 2016 stood at RMB0.00, down 100.00% from the
year-beginning amount, mainly because financial liabilities were delivered upon maturity.
(9) Notes payable as at 30 September 2016 stood at RMB1,242,220.00, down 60.05% from the year-beginning amount, mainly
because bank acceptance bills payable by the Company decreased.
(10) Long-term borrowings as at 30 September 2016 stood at RMB122,201,605.53, up 100.00% from the year-beginning amount,
mainly because Lu Thai (Vietnam) secured long-term borrowings.
(11) Treasury shares as at 30 September 2016 stood at RMB0.00, down 100.00% from the year-beginning amount, mainly because
the Company cancelled the B-shares bought back.
(12) Other comprehensive income as at 30 September 2016 stood at RMB34,374,282.73, up 101.13% from the year-beginning
amount, mainly because currency translation profit increased due to exchange rate changes.
(13) Finance costs for January-September 2016 stood at RMB26,357,253.37, up 68.77% year on year, mainly because net exchange
loss increased due to exchange rate changes.
(14) Asset impairment loss for January-September 2016 stood at RMB4,823,442.61, up 107.87% year on year, mainly because of the
inventory falling price provision.
(15) Profit on fair value changes for January-September 2016 stood at RMB46,397,456.20, up 387.50% year on year, mainly because
financial liabilities were delivered upon maturity.
(16) Return on investment for January-September 2016 stood at RMB-42,954,499.35, down 217.32% year on year, mainly because
of a greater loss on derivative financial instruments.
(17) Non-operating revenue for January-September 2016 stood at RMB33,540,794.44, down 36.28% year on year, mainly because
governmental subsidies decreased.
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
(18) Non-operating expense for January-September 2016 stood at RMB12,415,314.62, up 137.08% year on year, mainly because of a
greater loss on disposal of fixed assets.
(19) Corporate income tax for January-September 2016 stood at RMB137,676,433.01, up 37.04% year on year, mainly because the
total profit increased and a change in the tax policy that the R&D expenses were not allowed for quarterly over-deduction in the
calculation of the taxable income amount for the current period.
II Progress on significant events, as well as the influence and solutions
√ Applicable □ Not applicable
On 5 August 2015, the Company held the 2015 1st Extraordinary General Meeting, which reviewed and approved the Proposal on the
Buy-back of Part of the A Shares and B Shares of the Company and issued the Report of the Buy -back of Part of the A Shares and B
Shares of the Company on 10 October 2015, and as for their details please refer to the announcemet (Announcement No.: 2015-029)
and the share buy-back report disclosed by the Company on www.cninfo.com.cn respectively on 6 August 2015 and 10 October 2015.
The Company began to execute the buy-back proposal since 10 November 2015 and had accumulatively bought back the B shares of
33,156,185 shares up to the buy-back period expired on 4 August 2016 and as for the specific information, please refer to the
announcement (Announcement No.: 2016-039) disclosed by the Company on www.cninfo.com.cn 5 August 2016. On 22 August
2016, the Company had completed the shares cancellation matters in Shenzhen Branch of CSDCC with the details on the
announcement (Announcement No.: 2016-040) disclosed by the Company on www.cninfo.com.cn on 24 August 2016.
Index to the relevant announcement
Overview of the significant event Date of disclosure
disclosed on the website
On 5 August 2015, the Company held the 2015 1st Extraordinary Announcement of No.: 2015-029 of the
6 Aug. 2015
General Meeting, which reviewed and approved the Proposal on the Company on www.cninfo.com.cn
Buy-back of Part of the A Shares and B Shares of the Company and
Announcement of No.:2016-039 of the
issued the Report of the Buy -back of Part of the A Shares and B 5 Aug. 2016
Company on www.cninfo.com.cn
Shares of the Company on 10 October 2015, and as for their details
please refer to the announcemet (Announcement No.: 2015-029) and
the share buy-back report disclosed by the Company on
www.cninfo.com.cn respectively on 6 August 2015 and 10 October
2015. The Company began to execute the buy-back proposal since 10
November 2015 and had accumulatively bought back the B shares of
33,156,185 shares up to the buy-back period expired on 4 August
Announcement of No.: 2016-040 of the
2016 and as for the specific information, please refer to the 24 Aug. 2016
Company on www.cninfo.com.cn
announcement (Announcement No.: 2016-039) disclosed by the
Company on www.cninfo.com.cn 5 August 2016. On 22 August
2016, the Company had completed the shares cancellation matters in
Shenzhen Branch of CSDCC with the details on the announcement
(Announcement No.: 2016-040) disclosed by the Company on
www.cninfo.com.cn on 24 August 2016.
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
III Commitments of the Company, its shareholders, actual controller, acquirer, directors,
supervisors, senior management or other related parties fulfilled in the Reporting Period or
ongoing at the period-end
√ Applicable □ Not applicable
Date of
Type of
Commitment commitm Term of
Commitment commit Contents Fulfillment
maker ent commitment
ment
making
Commitments made in share
reform
Commitments made in acquisition
documents or shareholding
alteration documents
Commitments made in time of
asset restructuring
Commitments made in time of
IPO or refinancing
Commitments concerning stock
ownership incentive
The major
shareholder Zibo
The biggest Lucheng Textile
shareholder Zibo Investment Co.,
Lucheng Textile Ltd. and the
Investment Co., directors,
Zibo Lucheng Ltd. and the supervisors as
Textile directors, well as senior
Investment Co., Other supervisors and executives of
Other commitments made to 10 Jul. 10 Jul. 2015 to
Ltd. and the commit senior executives which had not
minority shareholders 2015 10 Jan. 2016
directors, ments committed that the decreased the
supervisors and shares of the shareholding of
senior executives Company held by the Company
them would not be from 10 July
decreased from 10 2015 to 10
July 2015 to the January 2016.
future six months The commitment
had completed
the execution.
Executed on time Yes
Specific reasons for failing to
N/A
fulfill commitments on time and
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
plans for next step
IV Performance forecast for Y2016
Warning of possible loss or considerable YoY change in the accumulative net profit made during the year-beginning to the end of the
next reporting period, as well as the reasons
□ Applicable √ Not applicable
V Securities investments
√ Applicable □ Not applicable
Variety Name Profit/loss Source
Code of Initial Opening Opening Closing Closing
of of Closing in the Accountin of
number shareholdin number shareholdin
securitie investment of shares book value Reporting
securitie securitie g of shares g g title securitie
(RMB) Period
s cost (RMB) held percentage held percentage
s s (RMB) s
Tradable
27,978,491.2 12,100,00 11,500,00 29,110,410.0 2,406,495.0
Stock 01788 GTJA 0.17% 0.17% financial Buy-in
0 0 0 0 0
assets
Tradable
15,454,818.0 17,661,727.4
Stock 02883 ZHYT 2,450,000 0.05% 3,048,000 0.06% 527,278.50 financial Buy-in
0 4
assets
Tradable
10,343,030.6 14,029,685.0 -1,146,802.7
Stock 00980 LHCS 3,839,000 0.34% 5,468,000 0.49% financial Buy-in
8 4 5
assets
Tradable
-2,560,958.4
Stock 02006 JJJD 9,079,748.08 3,380,000 0.06% 3,380,000 0.06% 6,955,330.20 financial Buy-in
0
assets
Tradable
Stock 00116 ZSS 3,749,706.09 40,000 0.01% 350,000 0.05% 4,128,495.00 361,021.76 financial Buy-in
assets
Tradable
Stock 01666 TRTKJ 3,177,673.80 300,000 0.02% 300,000 0.02% 3,874,500.00 588,924.00 financial Buy-in
assets
Tradable
Stock 200056 HTB 1,945,028.80 200,000 0.02% 400,000 0.03% 1,907,976.00 -332,346.00 financial Buy-in
assets
Tradable
Stock 200058 SSGB 493,908.10 100,000 0.01% 100,000 0.01% 485,604.00 3,444.00 financial Buy-in
assets
Tradable
Stock 02355 BYJT 424,199.90 100,000 0.02% 100,000 0.02% 453,747.00 2,583.00 Buy-in
financial
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
assets
Tradable
Stock 00525 GSTL 1,415,416.50 850,000 0.01% 0.00 -83,840.36 financial Buy-in
assets
Other securities investment
698,357.15 50,000 -- -- 0.00 364,958.10 -- --
held at the period-end
74,760,378.3 23,409,00 24,646,00 78,607,474.6
Total -- -- 130,756.85 -- --
0 0 0 8
Disclosure date of the
announcement about the
board’s consent for the
securities investment
Disclosure date of the
announcement about the
general meeting’s consent
for the securities
investment (if any)
VI Investment in financial derivatives
√ Applicable □ Not applicable
Unit: RMB’0,000
Proporti
on of
closing
Amoun investm
Actual
Type of t Impairm ent
Related-p Initial Opening Amount Closing gain/lo
derivati purchas ent amount
arty investm Beginni Ending investm sold in investm ss in
Operator Relation ve ed in provisio in the
transactio ent ng date date ent reportin ent reporti
investm reporti n (if Compan
n or not amount amount g period amount ng
ent ng any) y’s
period
period closing
net
assets
(%)
Forward
exchang
Commer Non-rela 79,386. 2015-01 2016-12 79,386. 79,430. -2,626.
No e 44.3 0 0 0.00%
cial bank ted 21 -26 -26 21 51 48
settleme
nt
Commer Non-rela No Option 104,300 2015-01 2016-08 104,300 10,007. 110,960 0 3,347.5 0.47% -1,711.
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
cial bank ted portfoli -23 -29 5 89
o
183,686 183,686 10,051. 190,390 -4,338.
Total -- -- 0 3,347.5 0.47%
.21 .21 8 .51 37
Capital source for derivative
Own funds
investment
Lawsuit (if applicable) No lawsuits
Disclosure date of board announcement 2015-04-25
on approval of derivative investment (if
2016-05-19
any)
Disclosure date of board announcement
on approval of derivative investment (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 concerning 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.
Risk analysis and risk control measures
Risk control measures: The Company carefully studied and mastered laws, regulations and
for derivative products held in
policies relevant to derivative products transaction, formulated internal control rules for the
reporting period (including but not
forward settlement hedging business, standardized the operation procedures. And
limited to market risk, liquidity risk,
strengthened the compliant examination on derivative products investment business, and
credit risk, operation risk, legal risk,
strictly abided by relevant laws, regulations and the Company’s internal management rules.
etc.)
2. Credit risk and liquidity risk:
When the contract matures, the Company couldn’t deliver as scheduled due to insufficient
liquidity, and the counterparty or the Company couldn’t fulfill the contract due to other
aspects except the liquidity, which would cause credit risk and further economic losses for
the Company.
Risk control measures: 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 2015 approved at the
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
20th Session of the 7th Board of Directors on 23 Apr. 2015 and the Proposal on the Plan of
Lu Thai Textile Co., Ltd. for Derivative Transactions in 2016 approved at the 33th Session of
the 7th Board of Directors on 17 May 2016, 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.
Risk control measures: 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:
Since the RMB exchange rate reform on 8 Nov. 2015, the reform towards a market-based
RMB exchange rate regime has stepped into a new stage. In the short run, there is some
depreciation pressure on the RMB, but a sharp depreciation is considered unlikely. In the
long run, the positive economic fundamentals of China, the large surplus of the current
accounts and the faster globalization of the RMB will enable the RMB to remain a strong
currency. In the near future, the RMB exchange rate is expected to be more flexible with a
distinct feature of bidirectional volatility. The forward settlement of exchange and the option
business is important derivative product transactions of the Company, which was
significantly affected by the exchange rate fluctuation. So far, the derivative product of the
Company held was only USD5 million, the fluctuation of RMB exchange rate will had no
significant influence to the Company’s derivative trasaction.
Risk control measures: Although a more flexible RMB exchange rate and the increased
fluctuation range added to the operation difficulty, it provided a certain opportunity.
Therefore, the relevant personnel of the Company will actively analyze market changes,
carefully operate and hold positive opportunity, so as to try the best to reduce the market
risks under the condition of increased market difficulty.
Changes in market prices or fair value 1. As of 30 September 2016, the Company held 1 undue financial derivative product
of invested derivatives in reporting contracts, totaling USD5 million, was foreign exchange option contracts which will due in
period (fair value analysis should December 2016. The financial derivative products above accounted for 0.47% of the closing
include specific analysis methods as net assets.
well as relevant assumptions and 2. From January- September 2016, the due financial derivative products of the Company
13
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
parameters) totally equaled to USD 336 million and the losses generated was RMB43.3837 million. To
be specific, the due forward settlement was USD125.5 million, generating loss of
RMB26.2648 million; the due foreign exchange options equaled to USD210.5 million, of
which USD184.5 million was delivered on time upon satisfaction of the delivery conditions,
generating loss of RMB17.1189 million, and USD26 million was undelivered due to
dissatisfaction of the delivery conditions.。
Significant changes in the Company’s
accounting policy and specific
accounting principles for derivatives in No significant changes
reporting period when compared to last
period
The Company’s independent directors Zhou Zhiji, Zhang Chengzhu, Wang Lei, Xu Jianjun
and Zhao Yao, concerning conducting derivatives business, have issued the following
professional advice: We are of the opinion that it will strengthen the Company’s
competitiveness to use derivative transactions with focus on forward settlement and
Specific opinion from independent
purchase as an effective tool to avoid foreign exchange risks, to strengthen the relevant
directors on the Company’s derivatives
internal control and to carry out the loss and risk prevention measures so as to improve the
investment and risk control
operation and management. In conducting derivative transactions with focus on forward
settlement and purchase, the Company follows a legal approval procedure, has sound
relevant institutions and keeps the risks relatively controllable. No harm has been done to
the interests of the Company’s shareholders.
VII Visits paid to the Company for purposes of research, communication, interview, etc.
during the Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
Participate in GF Securities’ teleconference meeting about the
2016-08-31 By phone Institution Semi-annual Report in 2016 of Lu Thai Textile communicating
upon the basic situation of the Company with investors.
VIII Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder and its related parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 612,520,306.98 795,501,196.07
Financial assets at fair value through profit/loss 78,607,474.68 71,696,678.70
Derivative financial assets
Notes receivable 69,992,715.25 133,145,518.39
Accounts receivable 226,051,810.31 262,848,042.62
Accounts paid in advance 167,354,743.05 196,809,904.13
Interest receivable 653,075.08
Dividends receivable
Other accounts receivable 44,545,219.74 70,821,406.28
Redemptory monetary capital for sale
Inventories 1,592,533,570.18 1,743,963,973.24
Assets held for sale
Non-current assets due within 1 year
Other current assets 33,622,381.18 57,391,316.34
Total current assets 2,825,228,221.37 3,332,831,110.85
Non-current assets:
Available-for-sale financial assets 67,442,600.00 67,442,600.00
Held-to-maturity investments
Long-term accounts receivable 4,980,998.00 4,980,998.00
Long-term equity investments
Investment property 4,972,899,004.97 4,907,575,469.84
Construction in progress 396,575,486.54 205,094,029.50
Engineering materials 69,756,844.30 6,319,783.17
Disposal of fixed assets
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Productive living assets 1,087,692.43 1,177,113.89
Intangible assets 368,310,675.10 363,385,986.63
R&D expenses
Goodwill 20,613,803.29 20,613,803.29
Long-term deferred expenses 113,055,639.73 85,124,145.25
Deferred tax assets 49,942,349.68 62,123,091.53
Other non-current assets 28,104,371.31 34,502,367.27
Total non-current assets 6,092,769,465.35 5,758,339,388.37
Total assets 8,917,997,686.72 9,091,170,499.22
Current liabilities:
Short-term borrowings 798,317,048.28 802,766,318.90
Financial liabilities at fair value through profit/loss 46,695,875.00
Derivative financial liabilities
Notes payable 1,242,220.00 3,109,149.48
Accounts payable 191,722,836.53 248,570,405.57
Accounts received in advance 93,314,754.67 95,077,531.32
Payroll payable 250,831,190.52 291,263,599.62
Taxes and fares payable 75,791,011.40 80,615,008.14
Interest payable 1,888,196.32 1,851,876.78
Dividends payable 441,113.64 441,113.64
Other accounts payable 66,523,504.89 62,514,814.53
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,480,071,876.25 1,632,905,692.98
Non-current liabilities:
Long-term borrowings 122,201,605.53
Long-term payables
Long-term payroll payables 83,459,553.02 81,499,403.98
Specific payables
Estimated liabilities
Deferred income 94,962,717.25 96,135,077.91
Deferred income tax liabilities 2,253,413.51 2,192,694.35
Other non-current liabilities 1,840,000.00 1,840,000.00
Total non-current liabilities 304,717,289.31 181,667,176.24
16
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Total liabilities 1,784,789,165.56 1,814,572,869.22
Owners’ equity:
Share capital 922,602,311.00 955,758,496.00
Capital reserves 753,440,557.83 1,007,146,166.97
Less: Treasury stock 11,610,721.68
Other comprehensive income 34,374,282.73 17,090,772.31
Specific reserves
Surplus reserves 815,648,504.28 815,648,504.28
Provisions for general risks
Retained profits 4,168,715,560.52 4,053,079,857.70
Total equity attributable to owners of the Company 6,694,781,216.36 6,837,113,075.58
Minority interests 438,427,304.80 439,484,554.42
Total owners’ equity 7,133,208,521.16 7,276,597,630.00
Total liabilities and owners’ equity 8,917,997,686.72 9,091,170,499.22
Legal representative: Liu Zibin Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 266,665,241.76 361,326,403.14
Financial assets at fair value through profit/loss
Derivative financial assets
Notes receivable 46,742,262.40 100,449,603.66
Accounts receivable 326,900,119.96 235,128,453.94
Accounts paid in advance 57,876,500.19 194,884,351.36
Interest receivable
Dividends receivable
Other accounts receivable 174,777,627.10 33,540,540.54
Inventories 1,089,957,637.94 1,194,474,541.81
Assets held for sale
Non-current assets due within one year
Other current assets 6,735,741.21 20,665,251.54
Total current assets 1,969,655,130.56 2,140,469,145.99
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Non-current assets:
Available-for-sale financial assets 55,282,600.00 55,282,600.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 1,711,021,866.04 1,577,704,740.04
Investment property
Fixed assets 3,032,680,867.50 3,086,026,962.51
Construction in progress 65,837,355.45 47,195,873.42
Engineering materials 1,677,629.27 4,752,722.48
Disposal of fixed assets
Intangible assets 230,224,010.71 231,714,546.11
Deferred tax assets 52,113,687.29 56,039,573.79
Other non-current assets 18,322,489.31 25,733,137.67
Total non-current assets 5,167,160,505.57 5,084,450,156.02
Total assets 7,136,815,636.13 7,224,919,302.01
Current liabilities:
Short-term borrowings 534,832,609.40 509,321,176.41
Financial liabilities at fair value through profit/loss 39,527,800.00
Derivative financial liabilities
Notes payable 41,000,000.00 400,000.00
Accounts payable 270,012,787.64 156,939,081.65
Accounts received in advance 55,978,047.07 52,388,447.07
Payroll payable 188,932,221.14 225,146,911.56
Taxes and fares payable 45,778,002.03 44,647,234.36
Interest payable 1,888,196.32 830,073.23
Dividends payable 441,113.64 441,113.64
Other accounts payable 24,114,304.27 19,453,519.54
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,162,977,281.51 1,049,095,357.46
Non-current liabilities:
Long-term borrowings
Long-term payables
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Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Long-term payroll payable 83,459,553.02 81,499,403.98
Special payables
Estimated liabilities
Deferred income 61,915,763.75 61,687,374.76
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 145,375,316.77 143,186,778.74
Total liabilities 1,308,352,598.28 1,192,282,136.20
Owners’ equity:
Share capital 922,602,311.00 955,758,496.00
Capital reserves 759,793,238.92 1,013,498,848.06
Less: Treasury stock 11,610,721.68
Other comprehensive income
Specific reserves
Surplus reserves 815,648,504.28 815,648,504.28
Retained profits 3,330,418,983.65 3,259,342,039.15
Total owners’ equity 5,828,463,037.85 6,032,637,165.81
Total liabilities and owners’ equity 7,136,815,636.13 7,224,919,302.01
3. Consolidated income statement for the Reporting Period
Unit: RMB
Item July-September 2016 July-September 2015
1. Operating revenues 1,433,914,063.96 1,569,500,236.21
Including: Sales income 1,433,914,063.96 1,569,500,236.21
2. Total operating costs 1,150,074,108.90 1,341,971,914.13
Including: Cost of sales 931,426,457.61 1,114,701,276.77
Business tax and surtaxes 15,917,689.81 14,608,146.65
Selling expenses 35,754,052.90 44,750,892.55
Administrative expenses 153,044,613.01 159,277,381.50
Financial costs 6,546,510.69 6,595,261.92
Asset impairment loss 7,384,784.88 2,038,954.74
Add: Profit/loss on fair value changes (“-” means loss) 15,450,886.80 -28,385,095.00
Profit/loss on investment (“-” means loss) -9,313,278.13 7,753,914.81
Including: Share of profit in associates and joint ventures
19
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Foreign exchange profit (“-” means loss)
3. Operating profit (“-” means loss) 289,977,563.73 206,897,141.89
Add: Non-operating income 12,347,357.12 42,515,503.14
Including: Profit on disposal of non-current assets 343,842.01 148,208.96
Less: Non-operating expense 4,696,674.72 991,351.38
Including: Loss on disposal of non-current assets 2,530,749.32 248,952.00
4. Total profit (“-” means loss) 297,628,246.13 248,421,293.65
Less: Corporate income tax 48,157,938.49 32,998,250.07
5. Net profit (“-” means loss) 249,470,307.64 215,423,043.58
Net profit attributable to owners of the Company 236,519,891.59 204,342,167.24
Minority shareholders’ income 12,950,416.05 11,080,876.34
6. After-tax net amount of other composite income 4,893,753.80 15,635,393.71
After-tax net amount of other composite income
4,893,753.80 15,635,393.71
attributable to owners of the Company
6.1 Other composite income that will not be reclassified
into profit and loss
6.1.1 Changes in net liabilities or assets with a
defined benefit plan upon re-measurement
6.1.2 Enjoyable share in other comprehensive income
in investees that cannot be reclassified into profit and loss under
the equity method
6.2 Other composite income that will be reclassified
4,893,753.80 15,635,393.71
into profit and loss
6.2.1 Enjoyable share in other composite income in
investees that will be reclassified into profit and loss under the
equity method
6.2.2 Profit and loss on fair value changes of
available-for-sale financial assets
6.2.3 Profit and loss on reclassifying held-to-maturity
investments into available-for-sale financial assets
6.2.4 Effective hedging profit and loss on cash flow
6.2.5 Foreign-currency financial statement translation
4,893,753.80 15,635,393.71
difference
6.2.6 Other
After-tax net amount of other composite income
attributable to minority shareholders
7. Total composite income 254,364,061.44 231,058,437.29
Attributable to owners of the Company 241,413,645.39 219,977,560.95
Attributable to minority shareholders 12,950,416.05 11,080,876.34
20
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
8. Earnings per share
8.1 Basic earnings per share 0.25 0.21
8.2 Diluted earnings per share 0.25 0.21
Where business mergers under the same control occurred in the Reporting Period, net profit achieved by the merged parties before
the business mergers was RMB0.00, with the corresponding amount for the same period of last year being RMB0.00.
Legal representative: Liu Zibin Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming
4. Income statement of the Company for the Reporting Period
Unit: RMB
Item July-September 2016 July-September 2015
1. Operating revenues 1,315,386,535.04 1,278,909,332.19
Less: Operating costs 940,723,865.92 948,733,206.69
Business tax and surtaxes 11,201,820.01 12,428,849.05
Selling expenses 21,763,178.49 22,526,384.35
Administrative expenses 104,337,849.19 112,608,039.08
Finance costs 4,368,954.01 5,553,363.77
Asset impairment loss 6,584,893.25 -588,263.79
Add: profit on fair value changes (“-” means loss) 9,735,700.00 -25,523,190.00
Return on investment (“-” means loss) 8,176,633.62 206,830,114.81
Including: Share of profit/loss of associates and joint ventures
2. Operating profit (“-” means loss) 244,318,307.79 358,954,677.85
Add: Non-operating revenue 8,870,631.85 31,432,158.72
Including: Profit on disposal of non-current assets 157,408.00 148,208.96
Less: Non-operating expense 1,346,406.41 306,073.71
Including: Loss on disposal of non-current assets 966,221.16 214,190.34
3. Total profit (“-” means loss) 251,842,533.23 390,080,762.86
Less: Corporate income tax 32,559,112.92 22,267,924.25
4. Net profit (“-” means loss) 219,283,420.31 367,812,838.61
5. Other comprehensive income net of tax
5.1 Other comprehensive income that will not be reclassified into
profit and loss
5.1.1 Changes in net liabilities or assets with a defined benefit plan
upon re-measurement
5.1.2 Share of other comprehensive income of investees that
cannot be reclassified into profit/loss under the equity method
21
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
5.2 Other comprehensive income to be subsequently reclassified into
profit/loss
5.2.1 Share of other comprehensive income of investees that will
be reclassified into profit/loss under the equity method
5.2.2 Profit/loss on fair value changes of available-for-sale
financial assets
5.2.3 Profit/loss on reclassifying held-to-maturity investments into
available-for-sale financial assets
5.2.4 Effective profit/loss on cash flow hedges
5.2.5 Currency translation differences
5.2.6 Other
6. Total comprehensive income 219,283,420.31 367,812,838.61
7. Earnings per share
7.1 Basic earnings per share 0.25 0.38
7.2 Diluted earnings per share 0.25 0.38
5. Consolidated income statement for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
Item January-September 2016 January-September 2015
1. Operating revenues 4,265,240,836.99 4,511,336,133.37
Including: Sales income 4,265,240,836.99 4,511,336,133.37
2. Total operating costs 3,560,005,447.57 3,917,910,680.54
Including: Cost of sales 2,868,826,048.69 3,247,723,477.84
Business tax and surtaxes 40,718,418.33 39,252,858.89
Selling expenses 124,463,716.40 142,396,301.55
Administrative expenses 494,816,568.17 470,600,715.08
Financial costs 26,357,253.37 15,616,968.80
Asset impairment loss 4,823,442.61 2,320,358.38
Add: Profit/loss on fair value changes (“-” means loss) 46,397,456.20 -16,138,395.00
Profit/loss on investment (“-” means loss) -42,954,499.35 36,614,480.69
Including: Share of profit in associates and joint ventures
Foreign exchange profit (“-” means loss)
3. Operating profit (“-” means loss) 708,678,346.27 613,901,538.52
Add: Non-operating income 33,540,794.44 52,636,297.85
Including: Profit on disposal of non-current assets 572,155.31 958,145.92
22
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Less: Non-operating expense 12,415,314.62 5,236,765.44
Including: Loss on disposal of non-current assets 7,942,874.57 3,757,324.92
4. Total profit (“-” means loss) 729,803,826.09 661,301,070.93
Less: Corporate income tax 137,676,433.01 100,467,780.03
5. Net profit (“-” means loss) 592,127,393.08 560,833,290.90
Net profit attributable to owners of the Company 581,161,076.32 548,863,683.96
Minority shareholders’ income 10,966,316.76 11,969,606.94
6. After-tax net amount of other composite income 17,283,510.42 16,210,270.94
After-tax net amount of other composite income attributable to
17,283,510.42 16,210,270.94
owners of the Company
6.1 Other composite income that will not be reclassified into
profit and loss
6.1.1 Changes in net liabilities or assets with a defined benefit
plan upon re-measurement
6.1.2 Enjoyable share in other comprehensive income in
investees that cannot be reclassified into profit and loss under the
equity method
6.2 Other composite income that will be reclassified into profit
17,283,510.42 16,210,270.94
and loss
6.2.1 Enjoyable share in other composite income in investees
that will be reclassified into profit and loss under the equity method
6.2.2 Profit and loss on fair value changes of
available-for-sale financial assets
6.2.3 Profit and loss on reclassifying held-to-maturity
investments into available-for-sale financial assets
6.2.4 Effective hedging profit and loss on cash flow
6.2.5 Foreign-currency financial statement translation
17,283,510.42 16,210,270.94
difference
6.2.6 Other
After-tax net amount of other composite income attributable to
minority shareholders
7. Total composite income 609,410,903.50 577,043,561.84
Attributable to owners of the Company 598,444,586.74 565,073,954.90
Attributable to minority shareholders 10,966,316.76 11,969,606.94
8. Earnings per share
8.1 Basic earnings per share 0.62 0.57
8.2 Diluted earnings per share 0.62 0.57
Where business mergers under the same control occurred in the current period, the net profit achieved by the merged parties before
the business mergers was RMB0.00, with the corresponding amount for the same period of last year being RMB0.00.
23
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
6. Income statement of the Company for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
Item January-September 2016 January-September 2015
1. Operating revenues 3,684,048,403.41 3,628,521,750.08
Less: Operating costs 2,635,365,848.72 2,707,477,419.03
Business tax and surtaxes 27,687,609.47 31,909,658.05
Selling expenses 63,206,677.11 67,900,356.82
Administrative expenses 344,966,347.49 332,216,122.64
Finance costs 21,307,487.42 8,928,427.29
Asset impairment loss 34,867,799.94 -722,593.45
Add: profit on fair value changes (“-” means loss) 39,527,800.00 -13,685,890.00
Return on investment (“-” means loss) 18,551,262.92 251,346,259.90
Including: Share of profit/loss of associates and joint ventures
2. Operating profit (“-” means loss) 614,725,696.18 718,472,729.60
Add: Non-operating revenue 17,060,151.08 36,977,224.96
Including: Profit on disposal of non-current assets 339,790.68 535,631.91
Less: Non-operating expense 2,854,467.72 3,984,982.02
Including: Loss on disposal of non-current assets 1,036,036.68 3,630,036.75
3. Total profit (“-” means loss) 628,931,379.54 751,464,972.54
Less: Corporate income tax 92,329,061.54 72,010,844.91
4. Net profit (“-” means loss) 536,602,318.00 679,454,127.63
5. Other comprehensive income net of tax
5.1 Other comprehensive income that will not be reclassified into
profit and loss
5.1.1 Changes in net liabilities or assets with a defined benefit plan
upon re-measurement
5.1.2 Share of other comprehensive income of investees that
cannot be reclassified into profit/loss under the equity method
5.2 Other comprehensive income to be subsequently reclassified into
profit/loss
5.2.1 Share of other comprehensive income of investees that will
be reclassified into profit/loss under the equity method
5.2.2 Profit/loss on fair value changes of available-for-sale
financial assets
5.2.3 Profit/loss on reclassifying held-to-maturity investments into
available-for-sale financial assets
24
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
5.2.4 Effective profit/loss on cash flow hedges
5.2.5 Currency translation differences
5.2.6 Other
6. Total comprehensive income 536,602,318.00 679,454,127.63
7. Earnings per share
7.1 Basic earnings per share 0.58 0.71
7.2 Diluted earnings per share 0.58 0.71
7. Consolidated cash flow statement for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
Item January-September 2016 January-September 2015
1. Operating cash flow:
Cash received from sale of commodities and rendering of service 4,451,363,023.15 4,664,920,573.83
Tax refunds received 165,676,563.92 148,262,497.13
Other operating cash received 57,644,929.87 70,996,236.91
Subtotal of operating cash inflow 4,674,684,516.94 4,884,179,307.87
Cash paid for goods and services 1,978,778,368.73 2,501,134,045.38
Cash paid to and for employees 1,137,718,925.60 1,067,413,577.72
Taxes and fares paid 281,057,146.80 289,646,768.69
Other operating cash payments 185,894,867.97 192,474,784.29
Subtotal of operating cash outflow 3,583,449,309.10 4,050,669,176.08
Net operating cash flow 1,091,235,207.84 833,510,131.79
2. Investment cash flow:
Cash received from retraction of investments
Cash received from return on investments
Net cash received from disposal of fixed assets, intangible assets and
842,448.48 2,105,031.35
other long-term assets
Net cash received from disposal of subsidiaries or other business
units
Other cash received relating to investment activities 13,887,173.29 39,921,863.49
Subtotal of investment cash inflow 14,729,621.77 42,026,894.84
Cash paid to acquire fixed assets, intangible assets and other
581,218,810.56 251,589,688.97
long-term assets
Net cash paid to acquire subsidiaries and other business units
25
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Other investment cash payments 54,534,930.05 0.00
Subtotal of investment cash outflow 635,753,740.61 251,589,688.97
Net investment cash flow -621,024,118.84 -209,562,794.13
3. Financing cash flow:
Cash received from capital contributions 500,000.00
Including: dividends or profit paid by subsidiaries to minority
interests
Cash received as borrowings 1,634,550,537.14 1,269,421,740.31
Cash received from issuance of bonds
Cash paid for other financing activities 29,805,722.42 139,444,128.91
Sub-total of cash outflows from financing activities 1,664,356,259.56 1,409,365,869.22
Repayment of borrowings 1,550,854,947.76 1,075,891,350.84
Cash paid for interest expenses and distribution of dividends or
489,969,687.54 497,621,895.25
profit
Including: dividends or profit paid by subsidiaries to minority
interests
Other cash payments relating to financing activities 253,869,811.31 89,026,946.69
Sub-total of financing cash outflow 2,294,694,446.61 1,662,540,192.78
Net financing cash flow -630,338,187.05 -253,174,323.56
4. Effect of foreign exchange rate changes on cash and cash equivalents 6,874,499.12 9,752,853.01
5. Net increase in cash and cash equivalents -153,252,598.93 380,525,867.11
Add: Opening balance of cash and cash equivalents 765,695,473.65 649,393,798.30
6. Closing balance of cash and cash equivalents 612,442,874.72 1,029,919,665.41
8. Cash flow statement of the Company for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
Item January-September 2016 January-September 2015
1. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 3,650,560,016.13 3,590,700,117.90
Tax refunds received 133,011,154.02 110,604,855.86
Cash received from other operating activities 18,157,684.20 35,871,142.11
Subtotal of cash inflows from operating activities 3,801,728,854.35 3,737,176,115.87
Cash paid for goods and services 1,659,351,293.65 1,957,819,052.08
Cash paid to and for employees 834,261,504.20 811,587,279.87
26
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Taxes and fares paid 134,020,301.87 130,598,955.75
Cash paid for other operating activities 101,580,257.81 121,812,679.96
Subtotal of cash outflows from operating activities 2,729,213,357.53 3,021,817,967.66
Net cash flows from operating activities 1,072,515,496.82 715,358,148.21
2. Cash flows from investing activities:
Cash received from retraction of investments
Cash received as return on investments 55,177,682.68
Net cash received from disposal of fixed assets, intangible assets
637,067.58 1,623,821.35
and other long-term assets
Net cash received from disposal of subsidiaries or other business
units
Cash received from other investing activities 2,473,750.44 35,312,645.63
Subtotal of cash inflows from investing activities 58,288,500.70 36,936,466.98
Cash paid to acquire fixed assets, intangible assets and other
139,406,268.44 112,186,277.99
long-term assets
Cash paid for investment 137,814,270.00 352,757,288.38
Net cash paid to acquire subsidiaries and other business units
Cash paid for other investing activities 37,432,400.00
Subtotal of cash outflows from investing activities 314,652,938.44 464,943,566.37
Net cash flows from investing activities -256,364,437.74 -428,007,099.39
3. Cash flows from financing activities:
Cash received from capital contributions
Cash received as borrowings 1,246,734,806.62 752,717,733.96
Cash received from issuance of bonds
Cash received from other financing activities 61,013,728.00
Subtotal of cash inflows from financing activities 1,246,734,806.62 813,731,461.96
Repayment of borrowings 1,252,422,309.64 347,320,254.96
Cash paid for interest expenses and distribution of dividends or
472,425,946.46 479,370,646.28
profit
Cash paid for other financing activities 430,854,881.31 61,013,728.00
Sub-total of cash outflows from financing activities 2,155,703,137.41 887,704,629.24
Net cash flows from financing activities -908,968,330.79 -73,973,167.28
4. Effect of foreign exchange rate changes on cash and cash
-1,843,889.67 745,617.72
equivalents
5. Net increase in cash and cash equivalents -94,661,161.38 214,123,499.26
Add: Opening balance of cash and cash equivalents 361,326,403.14 249,509,717.93
27
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
6. Closing balance of cash and cash equivalents 266,665,241.76 463,633,217.19
II Auditor’s report
Is this Report audited?
□ Yes √ No
This Report is unaudited.
Board Chairman: Liu Zibin
Lu Thai Textile Co., Ltd.
28 October 2016
28
