Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd.
Lu Thai Textile Co., Ltd.
Report for the First Quarter of 2017
April 2017
1
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd.
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.
2
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd.
Section II Company Profile
I Financial results
Whether the Company performed any retroactive adjustments to or restatement of its accounting data due to changes of accounting
policies or correction of accounting errors
□ Yes √ No
January-March 2017 January-March 2016 +/-%
Operating revenues (RMB) 1,273,058,505.40 1,282,806,624.05 -0.76%
Net profit attributable to shareholders of
157,994,708.53 150,268,522.21 5.14%
the Company (RMB)
Net profit attributable to shareholders of
the Company before exceptional profit and 155,049,414.60 137,542,633.98 12.73%
loss (RMB)
Net operating cash flow (RMB) -73,576,928.32 183,258,282.60 -140.15%
Basic earnings per share (RMB/share) 0.17 0.16 6.25%
Diluted earnings per share (RMB/share) 0.17 0.16 6.25%
Weighted average return on equity 2.25% 2.15% 0.10%
31 March 2017 31 December 2016 +/-%
Total assets (RMB) 9,599,617,156.96 9,407,103,263.34 2.05%
Net assets attributable to shareholders of
7,092,096,902.20 6,937,985,729.19 2.22%
the Company (RMB)
Exceptional profit and loss
√ Applicable □ Not applicable
Unit: RMB
Item January-March 2017 Note
Profit/loss on disposal of non-current assets (including offset amount of asset
-1,173,169.92
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
6,131,296.64
given at a fixed 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 assets and tradable financial liabilities and financial assets 598,500.00
available for sales, except for effective hedging related with normal businesses
of the Company
3
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd.
Non-operating incomes and expenses other than the above -1,971,535.35
Less: Income tax effects 541,344.60
Minority interests effects (after tax) 98,452.84
Total 2,945,293.93 --
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 at the period-end and shareholdings of top ten shareholders
1. Numbers of common shareholders and preference shareholders with resumed voting rights as well as
shareholdings of top ten shareholders
Unit: share
Total number of preference
Total number of common
62,320 shareholders with resumed voting 0
shareholders at the period-end
rights at the period-end (if any)
Shareholdings of top ten shareholders
Shareholdi Pledged or frozen
Number of
Nature of ng Number of shares
Name of shareholder restricted shares
shareholder percentage shares held Status of Number
held
(%) shares of shares
Domestic
ZIBO LUCHENG TEXTILE
non-state-owned 15.21% 140,353,583
INVESTMENT CO., LTD.
corporation
TAILUN TEXTILE CO., LTD. Foreign corporation 12.82% 118,232,400 118,232,400
CENTRAL HUIJIN ASSETS State-owned
2.20% 20,315,300
MANAGEMENT CO., LTD. corporation
T.ROWE PRICE INTL DISCOVERY
Foreign corporation 2.16% 19,948,219
FUND
CHINA SECURITIES FINANCE State-owned
1.70% 15,679,091
CORPORATION LIMITED corporation
LYNAS ASIA FUND Foreign corporation 1.35% 12,440,000
HONG KONG SECURITIES
Foreign corporation 1.18% 10,864,371
CLEARING COMPANY LTD.
HUA AN NEW SILK ROAD THEME Domestic
1.11% 10,205,505
EQUITY SECURITIES INVESTMENT non-state-owned
4
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd.
FUND corporation
BNP PARIBAS Foreign corporation 0.88% 8,131,797
FIRST STATE CHINA A SHARE
Foreign corporation 0.80% 7,352,381
FUND
Shareholdings of top ten non-restricted shareholders
Number of Variety of shares
Name of shareholder non-restricted shares
Variety Number
held
RMB common
ZIBO LUCHENG TEXTILE INVESTMENT CO., LTD. 140,353,583
shares
RMB common
CENTRAL HUIJIN ASSETS MANAGEMENT CO., LTD. 20,315,300
shares
Domestically
T.ROWE PRICE INTL DISCOVERY FUND 19,948,219 listed foreign
shares
RMB common
CHINA SECURITIES FINANCE CORPORATION LIMITED 15,679,091
shares
Domestically
LYNAS ASIA FUND 12,440,000 listed foreign
shares
RMB common
HONG KONG SECURITIES CLEARING COMPANY LTD. 10,864,371
shares
HUA AN NEW SILK ROAD THEME EQUITY SECURITIES RMB common
10,205,505
INVESTMENT FUND shares
RMB common
BNP PARIBAS 8,131,797
shares
RMB common
FIRST STATE CHINA A SHARE FUND 7,352,381
shares
Domestically
HTHK-MANULIFE CHINA VALUE FUND 6,858,138 listed foreign
shares
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 foreign capital of the
Related or acting-in-concert parties among the above shareholders
Company. All of other 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.
5
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd.
Top ten common shareholders conducting securities margin trading (if
N/A
any)
Did any of the top ten common shareholders or the top ten non-restricted common 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 ten of them
□ Applicable √ Not applicable
6
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
Section III Significant Events
I Changes in major financial data and indicators for the Reporting Period, as well as reasons
for such changes
√ Applicable □ Not applicable
Assets items:
(1) Other accounts receivable stood at RMB 31,955,559.44 on March 31, 2017, down by 30.93%
from the opening amount, mainly because export rebates that should be received at beginning
period were received in current period.
(2) Other current assets stood at RMB 57,017,887.67 on March 31, 2017, down by 46.98% from the
opening amount, mainly because the sold stock was transferred out from the securities account in
the current period.
(3) Engineering materials stood at RMB 199,826,672.33 on March 31, 2017, up by 70.62% from the
opening amount, mainly because Lu Thai (Vietnam) equipment to be installed increased.
(4) Other non-current assets stood at RMB 17,484,641.71 on March 31, 2017, down by 44.07%
from the opening amount, mainly because the advance payment for land of Xin Jiang Lu Thai was
transferred into intangible assets.
Liabilities and owners’ equity items:
(5) Notes payable stood at RMB 6,423,218.00 on March 31, 2017, up by 100.00% from the opening
amount, mainly because commercial acceptance bills payable in the current period increased.
(6) Payroll payable stood at RMB 199,084,558.19 on March 31, 2017, down by 36.92% from the
opening amount, mainly because the year-end bonuses for employees for 2016 were paid in the
current period.
Income statement items
(7) Taxes and surtaxes stood at RMB 22,303,687.92 for January-March 2017, up by 80.13% from
the year earlier, mainly because the taxes items initially recorded in administration expense was
recorded in this title in the current period according to VAT Accounting Rules CK[2016] No. 22.
(8) Financial expense stood at RMB 12,204,861.91 for January-March 2017, up by 230.27% from
the year earlier, mainly because net exchange loss increased.
(9) Asset impairment loss stood at RMB -3,651,249.64 for January-March 2017, down by 319.63%
from the same period of last year, mainly because closing accounts receivable decreased resulting to
the decrease of provision for Asset impairment loss.
(10) Profit on fair value changes stood at RMB 0.00 for January-March 2017, down by 100.00%
from the same period of last year, mainly because there was no fair value changes closing financial
liabilities at the period-end..
(11) Investment profit stood at RMB 598,500.00 for January-March 2017, up by 103.51% from the
year earlier, mainly because profit on investment in financial derivative instruments increased.
(12) Non-operating expenses stood at RMB 4,374,164.43 for January-March 2017, up by 382.06%
from the year earlier, mainly because of the payment for endowments for the Light of Textile
Science and Technology Education Funds in the current period..
Cash flow statement items:
7
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
(13) Net cash flow from operation activities stood at RMB -73,576,928.32 for January-March 2017,
down by 140.15% from the year earlier, mainly due to the increase of raw cotton procurement,
which increased the cash payment for products and services.
(14) Net cash flow from investing activities stood at RMB-108,083,010.35 for January-March 2017,
up by 35.84% from the year earlier, mainly because the sold stock was received in the current
period.
(15) Net cash flow from financing activities stood at RMB 170,780,237.10 for January-March 2017,
up by 807.87% from the year earlier, mainly because the cash payment for repaying debt decreased
in the current period.
II Progress of significant events and analysis & explanations on their influence and solutions
□Applicable√ Not applicable
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
No such cases in the Reporting Period.
IV Operating result forecast for January-June 2017
Forecast of a possible deficit or considerable YoY change in the accumulative net profit made during the period from the beginning
of the year to the end of the next reporting period, as well as explanation of why:
□ Applicable √ Not applicable
V Securities investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investment in financial derivatives
√ Applicable □ Not applicable
Unit: RMB’0,000
Ope Proporti
Relate Actual
ning Amount Closin on of
d-part Initial Amount Impairm gain/lo
Type of inve purchased g closing
Operat Rela y investme Beginning Ending sold in ent ss in
derivative stme in invest investm
or tion transac nt date date reporting provision reporti
investment nt reporting ment ent
tion or amount period (if any) ng
amo period amount amount
not period
unt in the
8
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
Compan
y’s
closing
net
assets
(%)
Comm Non- Forward
01/19/201 03/28/201
ercial relat No exchange 0 0 17,967.43 17,967.43 0 0.00% 58.95
7 7
bank ed settlement
Comm Non-
Option 01/03/201 04/07/201
ercial relat No 0 0 2,769 696 2,073 0.27% 0.9
portfolio 7 7
bank ed
Total 0 20,736.43 18,663.43 2,073 0.27% 59.85
Capital source for derivative
Own funds
investment
Lawsuit (if applicable) No lawsuits
Disclosure date of board 05/19/2016
announcement on approval of
derivative investment (if any)
Disclosure date of general
meeting 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.
Risk analysis and risk control
1. Risk concerning laws and regulations:
measures for derivative
The Company conducted derivatives products transaction in strict accordance with relevant laws
products held in reporting
and rules as well as regulatory policies from government securities regulatory authorities, if there
period (including but not limited
were no standard operation procedures and strict approval procedures, it was easy to cause
to market risk, liquidity risk,
compliant and regulatory risks existing in the validity and feasibility of contract, commitments
credit risk, operation risk, legal
and other legal documents signed.
risk, etc.)
Risk control 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:
9
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
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 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 and stable within a rational and balanced range. 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. 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 or option signed by the Company.
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
10
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
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 1. Up to 31 March 2017, the Company held 1 undue financial derivative product contract, totaling
value of invested derivatives in USD3 million, which will be due in April 2017. The financial derivative products above
reporting period (fair value accounted for 0.27% of the closing net assets.
analysis should include specific 2. From January- March 2017, the due financial derivative products of the Company totally
analysis methods as well as equaled to USD27 million, and the revenue generated was RMB598.5 thousand. To be specific,
relevant assumptions and the due forward settlement was USD26 million, generating profit of RMB589.5 thousand; the due
parameters) foreign exchange options equaled to USD1 million, generating profit of RMB9 thousand,
Significant changes in the No significant changes
Company’s accounting policy
and specific accounting
principles for derivatives in
reporting period when
compared to last period
The Company’s independent directors Xu Jianjun, Zhao Yao, Bi Xiuli, Pan Ailing and Wang
Xinyu, 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
Specific opinion from
transactions with focus on forward settlement and purchase as an effective tool to avoid foreign
independent directors on the
exchange risks, to strengthen the relevant internal control and to carry out the loss and risk
Company’s derivatives
prevention measures so as to improve the operation and management. In conducting derivative
investment and risk control
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 in the Reporting Period for purposes of research,
communication, interview, etc.
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor Index to main inquiry information
See details from "Record of Investor Relations Events and
02/23/2017 Field research Institution Daily Investor Relations Events of 02/23/2017” on
www.cninfo.com.cn
See details from "Record of Investor Relations Events and
Telephone
03/30/2017 Institution Daily Investor Relations Events of 03/30/2017” on
communication
www.cninfo.com.cn
VIII Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
11
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
IX Occupation of the Company’s funds by the controlling shareholder or its related parties
for non-operating purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
12
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by Lu Thai Textile Co., Ltd.
03/31/2017
Unit: RMB
Item Closing balance Opening balance
Current Assets:
Monetary funds 648,000,301.81 662,967,785.49
Financial assets measured at fair value with fair value
changes included in the profit and loss for the Reporting
Period
Derivative financial assets
Notes receivable 71,999,352.73 84,161,909.91
Accounts receivable 226,420,327.79 293,129,727.93
Accounts paid in advance 175,368,474.67 212,487,501.51
Interest receivable
Dividends receivable
Other accounts receivable 31,955,559.44 46,262,835.47
Financial assets purchased under agreements to resell
Inventories 2,097,453,898.31 1,816,700,441.85
Assets held for sale
Non-current assets due within 1 year
Other current assets 57,017,887.67 107,535,889.38
Total current assets 3,308,215,802.42 3,223,246,091.54
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets 24,660,000.00 24,660,000.00
Held-to-maturity investments
Long-term accounts receivable 2,310,000.00 2,310,000.00
Long-term equity investment
Investing real estate 25,381,650.33 25,844,090.56
13
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
Fixed assets 5,186,554,460.02 5,244,335,459.80
Construction in progress 150,973,329.59 154,668,358.96
Engineering materials 199,826,672.33 117,120,463.50
Disposal of fixed assets
Production biological assets 1,212,532.97 1,381,292.75
Oil-gas assets
Intangible assets 483,033,474.46 384,253,077.39
R&D expense
Goodwill 20,613,803.29 20,613,803.29
Long-term deferred expenses 113,117,096.67 114,227,364.54
Deferred income tax assets 66,233,693.17 63,183,792.63
Other non-current assets 17,484,641.71 31,259,468.38
Total of non-current assets 6,291,401,354.54 6,183,857,171.80
Total assets 9,599,617,156.96 9,407,103,263.34
Current liabilities:
Short-term borrowings 1,041,514,417.42 873,261,856.02
Financial liabilities measured at fair value of which
changes are recorded in current profits and losses
Derivative financial liabilities
Notes payable 6,423,218.00
Accounts payable 226,559,641.40 252,538,563.06
Accounts received in advance 83,315,453.10 89,451,314.62
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 199,084,558.19 315,618,449.91
Taxes payable 57,087,877.69 77,214,706.67
Interest payable 1,327,686.75 1,165,730.47
Dividends payable 441,113.64 441,113.64
Other accounts payable 72,903,422.55 69,365,641.15
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,688,657,388.74 1,679,057,375.54
Non-current liabilities:
14
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
Long-term borrowings 137,015,730.84 135,678,044.89
Long-term accounts payable
Long-term payroll payable 79,122,422.89 79,122,422.89
Special payables
Estimated liabilities
Deferred income 115,583,057.71 95,990,489.79
Deferred tax liabilities 2,323,554.60 2,341,089.87
Other non-current liabilities 1,840,000.00 1,840,000.00
Total non-current liabilities 335,884,766.04 314,972,047.44
Total liabilities 2,024,542,154.78 1,994,029,422.98
Owners’ equity:
Share capital 922,602,311.00 922,602,311.00
Capital reserve 753,482,745.93 753,440,557.83
Less: Treasury shares
Other comprehensive income 49,367,821.27 53,293,544.89
Special reserve
Surplus reserve 888,761,783.04 888,761,783.04
Provisions for general risks
Retained earnings 4,477,882,240.96 4,319,887,532.43
Equity attributable to owners of the Company 7,092,096,902.20 6,937,985,729.19
Minority interests 482,978,099.98 475,088,111.17
Total owners’ equity 7,575,075,002.18 7,413,073,840.36
Total liabilities and owners’ equity 9,599,617,156.96 9,407,103,263.34
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 324,667,963.84 177,016,859.63
Financial assets measured at fair value of which changes are
recorded in current profits and losses
Derivative financial assets
Notes receivable 50,494,344.16 64,421,665.52
15
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
Accounts receivable 254,334,271.68 297,026,110.33
Accounts paid in advance 109,790,143.29 139,013,057.80
Interest receivable
Dividend receivable
Other accounts receivable 329,112,734.79 340,458,208.20
Inventories 1,379,279,815.03 1,086,364,931.72
Assets held for sale
Non-current assets due within 1 year
Other current assets 11,053,312.17 1,126,006.88
Total current assets 2,458,732,584.96 2,105,426,840.08
Non-current assets:
Available-for-sale financial assets 12,500,000.00 12,500,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 1,711,021,866.04 1,711,021,866.04
Investing real estate 14,649,644.85 14,829,443.58
Fixed assets 2,968,091,795.79 3,019,132,803.64
Construction in progress 26,738,479.49 25,796,329.33
Engineering materials 1,436,707.91 663,894.82
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 228,846,431.28 229,433,475.02
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 61,116,931.39 62,042,513.61
Other non-current assets 15,227,381.71 8,831,098.34
Total of non-current assets 5,039,629,238.46 5,084,251,424.38
Total assets 7,498,361,823.42 7,189,678,264.46
Current liabilities:
Short-term borrowings 579,729,475.50 503,005,010.24
Financial liabilities measured at fair value of which changes
are recorded in current profits and losses
16
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
Derivative financial liabilities
Notes payable 4,244,500.00
Accounts payable 312,249,338.09 158,737,347.81
Accounts received in advance 68,117,229.29 54,552,285.78
Payroll payable 150,705,333.80 240,389,712.34
Tax payable 39,320,255.60 47,790,003.82
Interest payable 1,327,686.75 646,147.15
Dividend payable 441,113.64 441,113.64
Other accounts payable 23,258,817.93 19,309,386.42
Liabilities held for sale
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 1,179,393,750.60 1,024,871,007.20
Non-current liabilities:
Long-term borrowings
Long-term payables
Long-term payroll payables 79,122,422.89 79,122,422.89
Specific payables
Estimated liabilities
Deferred income 68,848,784.77 62,691,326.97
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 147,971,207.66 141,813,749.86
Total liabilities 1,327,364,958.26 1,166,684,757.06
Owners’ equity:
Share capital 922,602,311.00 922,602,311.00
Capital reserves 759,835,427.02 759,793,238.92
Less: Treasury stock
Other comprehensive income
Specific reserves
Surplus reserves 888,761,783.04 888,761,783.04
Retained profits 3,599,797,344.10 3,451,836,174.44
Total owners’ equity 6,170,996,865.16 6,022,993,507.40
Total liabilities and owners’ equity 7,498,361,823.42 7,189,678,264.46
17
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
3. Consolidated income statement
Unit: RMB
Item January-March 2017 January-March 2016
1. Operating revenues 1,273,058,505.40 1,282,806,624.05
Including: Sales income 1,273,058,505.40 1,282,806,624.05
2. Total operating costs 1,076,671,906.36 1,104,882,243.72
Including: Cost of sales 860,286,484.35 875,523,212.12
Business tax and surtaxes 22,303,687.92 12,382,148.81
Selling expenses 33,468,425.19 42,056,002.44
Administrative expenses 152,059,696.63 172,095,558.59
Financial costs 12,204,861.91 3,695,423.41
Asset impairment loss -3,651,249.64 -870,101.65
Add: Profit/loss on fair value changes (“-” means loss) 21,750,839.63
Profit/loss on investment (“-” means loss) 598,500.00 -17,050,096.30
Including: Share of profit in associates and joint
ventures
Foreign exchange profit (“-” means loss)
3. Operating profit (“-” means loss) 196,985,099.04 182,625,123.66
Add: Non-operating income 7,360,755.80 8,337,965.06
Including: Profit on disposal of non-current assets 62,175.45 12,908.07
Less: Non-operating expense 4,374,164.43 907,387.59
Including: Loss on disposal of non-current assets 1,235,345.37 132,504.33
4. Total profit (“-” means loss) 199,971,690.41 190,055,701.13
Less: Corporate income tax 34,086,993.07 38,872,497.09
5. Net profit (“-” means loss) 165,884,697.34 151,183,204.04
Net profit attributable to owners of the Company 157,994,708.53 150,268,522.21
Minority shareholders’ income 7,889,988.81 914,681.83
6. After-tax net amount of other composite income -3,925,723.62 -2,238,564.51
After-tax net amount of other composite income
-3,925,723.62 -2,238,564.51
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
18
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
and loss under the equity method
6.2 Other composite income that will be
-3,925,723.62 -2,238,564.51
reclassified 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
-3,925,723.62 -2,238,564.51
translation difference
6.2.6 Other
After-tax net amount of other composite income
attributable to minority shareholders
7. Total composite income 161,958,973.72 148,944,639.53
Attributable to owners of the Company 154,068,984.91 148,029,957.70
Attributable to minority shareholders 7,889,988.81 914,681.83
8. Earnings per share
8.1 Basic earnings per share 0.17 0.16
8.2 Diluted earnings per share 0.17 0.16
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
Unit: RMB
Item January-March 2017 January-March 2016
1. Operating revenues 1,078,892,478.02 1,041,199,143.68
Less: Operating costs 768,104,469.94 741,786,374.54
Business tax and surtaxes 16,363,855.87 9,396,186.31
Selling expenses 20,865,997.90 19,170,957.71
Administrative expenses 101,447,551.05 124,915,990.74
Financial costs 3,528,511.56 1,604,951.15
Asset impairment loss -2,657,643.03 -68,701.41
19
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
Add: profit/loss on fair value changes (“-” means loss) 22,160,300.00
Profit/loss on investment (“-” means loss) 598,500.00 -13,525,100.00
Including: Income from investment on associates and
joint ventures
2. Operating profit (“-” means loss) 171,838,234.73 153,028,584.64
Add: Non-operating income 6,442,047.27 6,099,909.65
Including: Profit on disposal of non-current assets 62,175.45
Less: Non-operating expense 3,133,091.11 690,342.86
Including: Loss on disposal of non-current assets 1,202.21 68,673.15
3. Total profit (“-” means loss) 175,147,190.89 158,438,151.43
Less: Corporate income tax 27,186,021.23 27,574,131.10
4. Net profit (“-” means loss) 147,961,169.66 130,864,020.33
5. After-tax net amount of other composite income
5.1 Other composite 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 Enjoyable share in other composite income in
investees that cannot be reclassified into profit and loss under
the equity method
5.2 Other composite income that will be reclassified into
profit and loss
5.2.1 Enjoyable share in other composite income in
investees that will be reclassified into profit and loss under
the equity method
5.2.2 Profit and loss on fair value changes of
available-for-sale financial assets
5.2.3 Profit and loss on reclassifying held-to-maturity
investments into available-for-sale financial assets
5.2.4 Effective hedging profit and loss on cash flow
5.2.5 Foreign-currency financial statement translation
difference
5.2.6 Other
6. Total composite income 147,961,169.66 130,864,020.33
7. Earnings per share
7.1 Basic earnings per share 0.16 0.14
7.2 Diluted earnings per share 0.16 0.14
5. Consolidated cash flow statement
Unit: RMB
20
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
Item January-March 2017 January-March 2016
1. Operating cash flow:
Cash received from sale of commodities and rendering of service 1,364,726,116.47 1,278,929,580.62
Net increase in disposal of financial assets at fair value through
profit/loss
Interest, fees and commissions received
Net increase in interbank borrowings
Net increase in funds in repurchase business
Tax refunds received 47,097,687.87 52,257,190.85
Cash received from other operating activities 37,614,215.55 21,967,477.09
Subtotal of cash inflows from operating activities 1,449,438,019.89 1,353,154,248.56
Cash paid for goods and services 877,487,789.33 555,862,207.46
Cash paid to and for employees 478,314,475.39 460,266,802.62
Taxes paid 90,528,374.92 93,712,854.89
Cash paid for other operating activities 76,684,308.57 60,054,100.99
Subtotal of cash outflows due to operating activities 1,523,014,948.21 1,169,895,965.96
Net cash flows from operating activities -73,576,928.32 183,258,282.60
2. Cash flows from investing activities:
Cash received from retraction of investments
Cash received as investment income
Net cash received from disposal of fixed assets, intangible assets and
451,988.35 61,480.59
other long-term assets
Net cash received from disposal of subsidiaries or other business units
Cash received from other investing activities 70,980,953.36 3,114,875.02
Subtotal of cash inflows from investing activities 71,432,941.71 3,176,355.61
Cash paid to acquire fixed assets, intangible assets and other long-term
179,515,952.06 151,893,510.28
assets
Cash paid for investment
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other business units
Cash paid for other investing activities 19,737,711.64
Subtotal of cash outflows due to investing activities 179,515,952.06 171,631,221.92
Net cash flows from investing activities -108,083,010.35 -168,454,866.31
3. Cash flows from financing activities:
Cash received from capital contributions
21
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
Including: Cash received from minority shareholder investments by
subsidiaries
Cash received as borrowings 463,565,338.71 548,488,279.74
Cash received from issuance of bonds
Cash received from other financing activities 29,807,847.03
Subtotal of cash inflows from financing activities 463,565,338.71 578,296,126.77
Repayment of borrowings 287,319,968.88 474,258,464.63
Cash paid for interest expenses and distribution of dividends or profit 5,465,132.73 4,231,003.95
Including: dividends or profit paid by subsidiaries to minority
interests
Cash paid for other financing activities 123,932,529.74
Sub-total of cash outflows due to financing activities 292,785,101.61 602,421,998.32
Net cash flows from financing activities 170,780,237.10 -24,125,871.55
4. Effect of foreign exchange rate changes on cash and cash equivalents -4,087,782.11 752,272.67
5. Net increase in cash and cash equivalents -14,967,483.68 -8,570,182.59
Add: Opening balance of cash and cash equivalents 654,779,220.82 765,695,473.65
6. Closing balance of cash and cash equivalents 639,811,737.14 757,125,291.06
6. Cash flow statement of the Company
Unit: RMB
Item January-March 2017 January-March 2016
1. Cash flows from operating activities:
Cash received from sale of
1,162,666,666.42 1,030,554,055.06
commodities and rendering of service
Tax refunds received 32,804,612.04 40,236,082.65
Cash received from other operating
12,626,116.36 6,893,946.59
activities
Subtotal of cash inflows from operating
1,208,097,394.82 1,077,684,084.30
activities
Cash paid for goods and services 685,725,106.60 474,970,450.47
Cash paid to and for employees 346,132,598.78 341,902,663.96
Taxes paid 46,951,812.96 38,303,825.59
Cash paid for other operating
45,317,103.44 32,549,009.04
activities
Subtotal of cash outflows due to
1,124,126,621.78 887,725,949.06
operating activities
Net cash flows from operating
83,970,773.04 189,958,135.24
activities
22
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
2. Cash flows from investing activities:
Cash received from retraction of
investments
Cash received as investment income
Net cash received from disposal of
fixed assets, intangible assets and other 466,988.35 53,980.59
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Cash received from other investing
1,972,088.44 172,839.48
activities
Subtotal of cash inflows from investing
2,439,076.79 226,820.07
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 12,742,051.92 74,409,219.69
assets
Cash paid for investment 106,044,460.00
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
1,000,000.00 14,394,100.00
activities
Subtotal of cash outflows due to
13,742,051.92 194,847,779.69
investing activities
Net cash flows from investing activities -11,302,975.13 -194,620,959.62
3. Cash flows from financing activities:
Cash received from capital
contributions
Cash received as borrowings 268,549,314.61 357,544,665.12
Cash received from issuance of
bonds
Cash received from other financing
activities
Subtotal of cash inflows from financing
268,549,314.61 357,544,665.12
activities
Repayment of borrowings 189,708,180.44 230,361,852.75
Cash paid for interest expenses and
2,366,745.41 1,968,099.25
distribution of dividends or profit
Cash paid for other financing
123,932,529.74
activities
Sub-total of cash outflows due to
192,074,925.85 356,262,481.74
financing activities
23
Report for the First Quarter of 2017 of Lu Thai Textile Co., Ltd
Net cash flows from financing
76,474,388.76 1,282,183.38
activities
4. Effect of foreign exchange rate
-1,491,082.46 267,090.85
changes on cash and cash equivalents
5. Net increase in cash and cash
147,651,104.21 -3,113,550.15
equivalents
Add: Opening balance of cash and
177,016,859.63 361,326,403.14
cash equivalents
6. Closing balance of cash and cash
324,667,963.84 358,212,852.99
equivalents
II Auditor’s report
Is this Report audited?
□ Yes √ No
This Report is not audited.
Board Chairman: Liu Zibin
Lu Thai Textile Co., Ltd.
28 April 2017
24
