Lu Thai Textile Co., Ltd. First Quarter Report 2018
LU THAI TEXTILE CO., LTD.
FIRST QUARTER REPORT 2018
April 2018
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Board as well as the Directors,
Supervisors and senior management of Lu Thai Textile Co., Ltd. (inclusive of its consolidated
subsidiaries, the “Company”; exclusive of its subsidiaries, the “Parent Company”, except
where the context otherwise requires) hereby guarantee the factuality, accuracy and
completeness of the contents of this Report, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions in this Report.
All the Company’s Directors have attended the Board meeting for the review of this Report.
Liu Zibin, the Company’s legal representative, Zhang Hongmei, the Company’s Chief
Accountant, and Zhang Keming, the Company’s Financial Manager hereby guarantee that
the Financial Statements carried in this Report are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reason
Business combination under the same control
January-March 2017 Change
January-March 2018 Before
After adjustment After adjustment
adjustment
Sales revenue (RMB) 1,520,075,607.17 1,273,058,505.40 1,275,925,984.80 19.14%
Net income attributable to shareholders of
159,278,371.57 157,994,708.53 159,008,371.62 0.17%
the listed company (RMB)
Net income attributable to shareholders of
the listed company before nonrecurring 138,275,958.60 155,049,414.60 156,062,830.19 -11.40%
gains and losses (RMB)
Net cash flows from operating activities
84,118,827.13 -73,576,928.32 -75,753,318.23 211.04%
(RMB)
Basic earnings per share (RMB/share) 0.17 0.17 0.17 0.00%
Diluted earnings per share (RMB/share) 0.17 0.17 0.17 0.00%
Weighted average return on equity (%) 2.18% 2.25% 2.26% -0.08%
December 31, 2017 Change
March 31, 2018 Before
After adjustment After adjustment
adjustment
10,170,624,027.7 10,170,624,027.7
Total assets (RMB) 10,417,233,981.45 2.42%
5 5
Equity attributable to shareholders of the
7,368,770,650.13 7,230,942,770.16 7,230,942,770.16 1.91%
listed company (RMB)
Nonrecurring gains and losses:
√ Applicable □ Not applicable
Unit: RM
Item January-March 2018 Note
Gains and losses on disposal of non-current assets (inclusive of
-670,957.85
offset allowance for asset impairments)
Government subsidies charged to current profit and loss 13,262,821.51
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
(exclusive of government subsidies given in the Company’s
ordinary course of business at fixed quotas or amounts as per
government’s uniform standards )
Gains and losses on changes in fair value of trading financial
assets and liabilities & investment income from disposal of
trading financial assets and liabilities and available-for-sale 10,391,184.80
financial assets (exclusive of effective portion of hedges that arise
in the Company’s ordinary course of business)
Non-operating revenue and expense other than above 498,380.22
Less: Income tax effects 999,728.27
Non-controlling interests effects (net of tax) 1,479,287.44
Total 21,002,412.97 --
Explanation of why the Company classifies an item as a nonrecurring gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Nonrecurring Gains and
Losses, or reclassifies any nonrecurring gain/loss item listed in the said explanatory announcement as a recurring gain/loss:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Top 10 Shareholders’ Holdings at Period-End
1. Numbers of Common Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Common shareholders at Preferred shareholders with resumed
61,943 0
period-end voting rights at period-end (if any)
Top 10 shareholders
Shareholding Pledged or frozen shares
Name of Nature of
percentage at Shares Restricted shares
shareholder shareholder Status Shares
period-end (%)
Zibo Lucheng
Domestic
Textile
non-state-owned 15.21% 140,353,583
Investment Co.,
juridical person
Ltd.
Tailun (Thailand) Foreign juridical
12.82% 118,232,400 118,232,400
Textile Co., Ltd. person
Hong Kong
Foreign juridical
Securities 2.73% 25,178,706
person
Clearing Co., Ltd
Central Huijin State-owned 2.20% 20,315,300
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
Assets juridical person
Management Co.,
Ltd.
T.ROWE PRICE
INTL Foreign juridical
2.16% 19,948,219
DISCOVERY person
FUND
China Securities
Domestic
Finance
non-state-owned 1.70% 15,679,091
Corporation
juridical person
Limited
Hong Kong
Monetary Foreign juridical
1.26% 11,669,693
Authority-self-ow person
ned funds
Bank of China
Limited-Hua’an
New Silk Road
Other 1.08% 9,990,000
Theme Equity
Securities
Investment Fund
FORENINGEN
Foreign juridical
AP INVEST 0.75% 6,879,562
person
F.M.B.A.
RBC
EMERGING
Foreign juridical
MARKETS 0.74% 6,785,384
person
SMALL CAP
EQUITY FUND
Top 10 non-restricted shareholders
Type of shares
Name of shareholder Non-restricted shares held at period-end
Type Shares
Zibo Lucheng Textile Investment RMB common
140,353,583 140,353,583
Co., Ltd. stock
Hong Kong Securities Clearing Co., RMB common
25,178,706 25,178,706
Ltd stock
Central Huijin Assets Management RMB common
20,315,300 20,315,300
Co., Ltd. stock
T.ROWE PRICE INTL Domestically
19,948,219 19,948,219
DISCOVERY FUND listed stock for
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
foreign investors
China Securities Finance RMB common
15,679,091 15,679,091
Corporation Limited stock
Hong Kong Monetary RMB common
11,669,693 11,669,693
Authority-self-owned funds stock
Bank of China Limited-Hua’an New
RMB common
Silk Road Theme Equity Securities 9,990,000 9,990,000
stock
Investment Fund
Domestically
FORENINGEN AP INVEST
6,879,562 listed stock for 6,879,562
F.M.B.A.
foreign investors
Domestically
RBC EMERGING MARKETS
6,785,384 listed stock for 6,785,384
SMALL CAP EQUITY FUND
foreign investors
Domestically
HTHK-MANULIFE CHINA
5,727,638 listed stock for 5,727,638
VALUE FUND
foreign investors
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
Related or acting-in-concert parties
as sponsor of foreign capital of the Company. All of other shareholders are people holding
among shareholders above
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.
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
Part III Significant Events
I Changes in Selected Financial Statement Items and Explanation of why
√ Applicable □ Not applicable
Assets items:
(1) The monetary capital stood at RMB925,105,665.95 on March. 31, 2018, up by 33.30% from the opening amount, mainly because
of the increase in the share repurchase of the Company and the reserve fund for dividends at the end of the Reporting Period.
(2) The financial assets measured at fair value and the changes recorded into the current gains and losses stood at RMB7,895,000.00
on March 31, 2018, up by 100% from the opening amount, mainly because of the gains arising from changes in fair value of forward
financial assets at the end of the Reporting Period.
(3) The notes receivable stood at RMB73,375,572.15 on March 31, 2018, down by 47.32% from the opening amount, mainly because
of the collection of the period-begin L/C at maturity and the remittance of banker’s acceptance.
(4) The interest receivable stood at RMB1,716,295.67 on March 31, 2018, up by 190.90% from the opening amount, mainly because
of the increase in the principal of fixed deposits and interest accrual days in the Reporting Period.
(5) The engineering materials stood at RMB103,498,148.45 on March 31, 2018, up by 81.85% from the opening amount, mainly
because of the increase of equipment to be installed.
(6) Other non-current assets stood at RMB75,435,092.14 on March 31, 2018, up by 107.29% from the opening amount, mainly
because of the increase of prepayment for equipment.
Liabilities and owners’ equity items:
(7) The payroll payable stood at RMB202,744,392.02 on March 31, 2018, down by 36.01% from the opening amount, mainly
because of the payment of year-end bonus for 2017 in the Reporting Period.
(8) The non-current liabilities due within one year stood at RMB0.00 on March 31, 2018, down by 100.00% from the opening
amount, mainly because of the repayment of the loan due within one year borrowed by Lu Thai (Vietnam) in the Reporting Period.
(9) The long-term loans stood at RMB107,412,290.00 on March 31, 2018, up by 100.00% from the opening amount, mainly because
of the increase of the long-term loan borrowed by Lu Thai (Vietnam) for its second phase of expansion.
(10) Other comprehensive income stood at RMB-4,639,917.38 on March 31, 2018, down by 127.60% from the opening amount,
mainly because of the decrease of the translation balance of the foreign currency statement.
Income statement items
(11) The financial expense stood at RMB43,774,185.06 for January-March 2018, up by 255.67% from the same period of last year,
mainly because of the increase of exchange losses in the Reporting Period.
(12) The Asset impairment losses stood at RMB-725,392.20 for January-March 2018, up by 80.12% from the same period of last year,
mainly because of the provision for bad debts in the current period has increased year-on-year.
(13) The income arising from changes in fair value stood at RMB7,895,000.00 for January-March 2018, up by 100.00% from the
same period of last year, mainly because of the changes in fair value of financial assets at the end of the Reporting Period.
(14) The investment income stood at RMB2,439,952.13 for January-March 2018, up by 307.68% from the same period of last year,
mainly because of the increase of investment income in derivative financial instruments in the Reporting Period.
(15) The asset disposal income stood at RMB-300,994.82 for January-March 2018, up by 65.13% from the same period of last year,
mainly because of the decrease of fixed assets disposal loss in the Reporting Period.
(16) Other income stood at RMB13,262,821.51 for January-March 2018, up by 118.09% from the same period of last year, mainly
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
because of the increase of government subsidies related to operation received in the Reporting Period.
(17) The non-operating expense stood at RMB1,054,317.03 for January-March 2018, down by 69.43% from the same period of last
year, mainly because of the decrease of payment for donations in the Reporting Period.
II Progress, Influence and Solutions Associated with Significant Events
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Operating Result Forecast for January-June 2018
Warning of a forecast loss on or a forecast significant year-over-year change in net income for January-June 2018, as well as
explanation of why:
□ Applicable √ Not applicable
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand)
Proporti
on of
closing
investm
Amount
Related- Type of Amount Impairm ent Actual
Initial Opening purchas Closing
party derivativ sold in ent amount gain/los
Operato investm Beginni Ending investm ed in investm
Relation transacti e Reporti provisio in the s in
r ent ng date date ent Reporti ent
on or investme ng n (if Compan Reportin
amount amount ng amount
not nt Period any) y’s g Period
Period
closing
net
assets
(%)
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
Forward
Comme
Non-rel exchange 28,270. Feb. 22, Dec. 21, 28,270. 25,090.
rcial No 0 3,180 3.17% 12.4
ated settlemen 78 2018 2018 78 78
bank
t
Comme foreign
Non-rel 121,673 Nov. 30, Dec. 27, 101,873 58,226. 63,447.
rcial No exchange 19,800 8.01% 210.35
ated .66 2017 2018 .66 48 18
bank option
forward
Comme
Non-rel exchange 16,163. Mar. 14, Mar. 20, 16,163. 16,163.
rcial No 0 0 24.92
ated transactio 06 2018 2018 06 06
bank
ns
Comme foreign
Non-rel Mar. 21, Mar. 30,
rcial No exchange 2,850.4 0 2,850.4 2,850.4 0 1.95
ated 2018 2018
bank swap
168,957 149,157 80,419. 88,537.
Total -- -- 19,800 11.18% 249.62
.9 .9 94 96
Capital source for derivative
Self-owned funds
investment
Lawsuit (if applicable) No
Disclosure date of board
announcement on approval of April 28, 2017
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 it 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 market risks, liquidity risk and credit risk, operation risk and risk of
Risk analysis and risk control laws and regulations.
measures for derivative products held 1. Market risk: when the international and domestic economic situations change, the
in Reporting Period (including but corresponding changes in exchange rates and interest rates may have an adverse impact on
not limited to market risk, liquidity the financial derivatives transactions of the Company. Precautionary measures to be taken
risk, credit risk, operation risk, legal include: the Company chooses risk-controlled financial derivative tools with simple structure
risk, etc.) and good liquidity to carry out the hedging business, strictly controls the scale of financial
derivatives trading by staged operations, and adjusts the strategy according to market changes
in a timely manner.
2. Liquidity risk and credit risk: a credit risk arising from failure of the contractually due
Company or counterparty in performing the contract due to liquidity or factors other than
liquidity. Precautionary measures to be taken include: the Company determines the upper
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
limit of derivatives transaction amounts according to production and operation scale as well
as foreign exchange income, and conducts operations by stage according to the budget of
future collections and disbursement. The derivative trades are free of guarantee deposit and
can still be guaranteed in performance after the contract expires by means of extension and
balance settlement etc. to prevent the Company from credit damages due to lack of liquidity.
The Company selects financial institutions with strong capability and good reputation as a
counterparty and signs standard derivative trading contracts to strictly control credit risk of
the counterparty.
3. Operation risk:
The derivative 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, formulated the 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
professional ethics education and business training for them. Besides, it established the
System of Reporting the Abnormal Situation Timely to lower the operation risks to the
maximum.
4. Risk concerning laws and regulations:
The Company conducted derivatives products transaction in strict accordance with State
relevant laws and rules, 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 control
measures: The Company carefully studied and mastered laws, regulations 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 transaction business. The Company carries out derivative
trading business upon fulfillment of relevant approval procedures, complying with relevant
national laws and regulations, the "Articles of Association", "Lu Thai Derivatives Trading
Management System" and the relevant provisions of the "Proposal on the Company's
Derivatives Trading Plan" reviewed and passed at the seventh meeting of the eighth session
of the Board of Directors held on April 26, 2017. Moreover, the Company fulfilled the
relevant information disclosure obligations.
1. As of Mar. 31, 2018, the Company held a total of 39 undue financial derivative contracts,
totaling US$ 141.20 million, all of which were forward exchange settlement and foreign
Changes in market prices or fair value
exchange options. The contract expires at the latest by December 2018. Financial derivatives
of invested derivatives in Reporting
accounted for 11.18% of the net assets at the end of the Reporting Period.
Period (fair value analysis should
2. From January to March of 2018, the mature financial derivatives of the Company
include specific analysis methods as
amounted to US$127.0124 million, generating an income of RMB2.4962 million after
well as relevant assumptions and
implemented in line with contracts, including the expiry long-term foreign exchange
parameters)
settlement of US$5 million, which generated an income of RMB0.124 million. The mature
foreign exchange options amounted to US$92 million, generating an income of RMB2.1035
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
million. The mature long-term foreign exchange sale amounted to US$25.5131 million,
generating an income of RMB249,200. The mature foreign exchange swap amounted to
US$ 4.4993 million, generating an income of RMB19,500.
Significant changes in the Company’s
accounting policy and specific
accounting principles for derivatives No significant changes
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
Specific opinion from independent derivative transactions with focus on forward settlement and purchase as an effective tool to
directors on the Company’s avoid foreign exchange risks, to strengthen the relevant internal control and to carry out the
derivatives investment and risk loss and risk prevention measures so as to improve the operation and management. In
control 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 Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Money by Its Controlling Shareholder or Related Parties
for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Lu Thai Textile Co., Ltd.
March 31, 2018
Unit: RMB
Item March 31, 2018 December 31, 2017
Current assets:
Monetary assets 925,105,665.95 693,989,293.38
Settlement reserve
Interbank loans granted
Financial assets at fair value through
7,895,000.00
profit or loss
Derivative financial assets
Notes receivable 73,375,572.15 139,276,742.34
Accounts receivable 330,299,610.70 334,080,524.05
Prepayments 187,553,784.52 146,463,066.38
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Interest receivable 1,716,295.67 590,003.07
Dividends receivable
Other receivables 42,239,088.18 56,182,782.04
Financial assets purchased under
resale agreements
Inventories 2,126,669,831.68 2,100,661,221.93
Assets classified as held for sale
Current portion of non-current assets
Other current assets 126,033,802.29 118,588,703.34
Total current assets 3,820,888,651.14 3,589,832,336.53
Non-current assets:
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
Loans and advances to customers
Available-for-sale financial assets 85,127,000.00 84,533,000.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 97,480,499.35 97,536,732.02
Investment property 24,210,125.14 24,563,544.58
Property, plant and equipment 5,323,758,356.52 5,421,295,850.03
Construction in progress 190,388,793.40 157,421,820.68
Engineering materials 103,498,148.45 56,913,806.06
Proceeds from disposal of property,
plant and equipment
Productive living assets
Oil and gas assets
Intangible assets 499,429,138.35 498,948,301.48
R&D expense
Goodwill 20,613,803.29 20,613,803.29
Long-term prepaid expense 103,383,740.91 107,877,194.52
Deferred income tax assets 73,020,632.76 74,697,159.71
Other non-current assets 75,435,092.14 36,390,478.85
Total non-current assets 6,596,345,330.31 6,580,791,691.22
Total assets 10,417,233,981.45 10,170,624,027.75
Current liabilities:
Short-term borrowings 1,327,065,938.93 1,135,124,996.40
Borrowings from central bank
Customer deposits and deposits from
banks and other financial institutions
Interbank loans obtained
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable 7,611,554.43 7,301,771.85
Accounts payable 343,203,319.45 366,265,132.65
Advances from customers 96,759,833.97 119,785,945.48
Financial assets sold under
repurchase agreements
Handling charges and commissions
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
payable
Payroll payable 202,744,392.02 316,836,488.95
Taxes payable 26,757,268.54 33,055,090.58
Interest payable 2,000,940.15 1,572,231.86
Dividends payable 441,113.64 441,113.64
Other payables 158,952,966.49 127,090,009.25
Reinsurance payables
Insurance contract reserve
Payables for acting trading of
securities
Payables for underwriting of
securities
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
62,750,292.49
liabilities
Other current liabilities
Total current liabilities 2,165,537,327.62 2,170,223,073.15
Non-current liabilities:
Long-term borrowings 107,412,290.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable 93,843,473.02 93,843,473.02
Specific payables
Provisions
Deferred income 126,523,606.68 126,737,092.32
Deferred income tax liabilities 2,903,444.17 2,904,899.46
Other non-current liabilities 1,840,000.00 1,840,000.00
Total non-current liabilities 332,522,813.87 225,325,464.80
Total liabilities 2,498,060,141.49 2,395,548,537.95
Owners’ equity:
Share capital 922,602,311.00 922,602,311.00
Other equity instruments
Including: Preferred shares
14
Lu Thai Textile Co., Ltd. First Quarter Report 2018
Perpetual bonds
Capital reserves 699,493,593.82 699,493,593.82
Less: Treasury shares
Other comprehensive income -4,639,917.38 16,810,574.22
Specific reserve
Surplus reserves 962,933,579.06 962,933,579.06
General reserve
Retained earnings 4,788,381,083.63 4,629,102,712.06
Total equity attributable to owners of
7,368,770,650.13 7,230,942,770.16
Parent Company
Non-controlling interests 550,403,189.83 544,132,719.64
Total owners’ equity 7,919,173,839.96 7,775,075,489.80
Total liabilities and owners’ equity 10,417,233,981.45 10,170,624,027.75
Legal representative: Liu Zibin The Company’s chief accountant: Zhang Hongmei
The Company’s financial manager: Zhang Keming
2. Parent Company Balance Sheet
Unit: RMB
Item March 31, 2018 December 31, 2017
Current assets:
Monetary assets 410,894,461.13 267,809,829.78
Financial assets at fair value through
6,736,100.00
profit or loss
Derivative financial assets
Notes receivable 50,588,412.08 93,244,480.81
Accounts receivable 353,647,366.36 305,903,590.98
Prepayments 37,437,993.48 81,471,605.69
Interest receivable 716,450.08 220,590.38
Dividends receivable
Other receivables 407,246,970.03 519,788,239.57
Inventories 1,201,043,724.61 1,164,055,145.96
Assets classified as held for sale
Current portion of non-current assets
Other current assets 52,530,631.69 53,657,308.33
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
Total current assets 2,520,842,109.46 2,486,150,791.50
Non-current assets:
Available-for-sale financial assets 73,127,000.00 72,533,000.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 2,072,643,615.39 1,816,493,348.06
Investment property 15,353,874.24 15,536,968.08
Property, plant and equipment 2,710,451,455.73 2,811,046,847.91
Construction in progress 56,288,457.78 25,703,496.87
Engineering materials 950,398.04 1,609,204.75
Proceeds from disposal of property,
plant and equipment
Productive living assets
Oil and gas assets
Intangible assets 248,024,224.07 249,994,817.83
R&D expense
Goodwill
Long-term prepaid expense
Deferred income tax assets 50,595,834.07 51,474,007.76
Other non-current assets 32,089,337.07 27,077,391.31
Total non-current assets 5,259,524,196.39 5,071,469,082.57
Total assets 7,780,366,305.85 7,557,619,874.07
Current liabilities:
Short-term borrowings 800,508,914.22 622,438,413.87
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable 6,384,161.90 6,124,239.92
Accounts payable 172,043,142.33 147,883,359.29
Advances from customers 57,941,034.18 52,314,250.61
Payroll payable 155,501,642.29 240,391,459.47
Taxes payable 9,044,751.23 17,297,415.92
Interest payable 1,929,895.73 973,134.21
Dividends payable 441,113.64 441,113.64
Other payables 24,284,511.29 22,933,385.28
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Lu Thai Textile Co., Ltd. First Quarter Report 2018
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 1,228,079,166.81 1,110,796,772.21
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable 93,843,473.02 93,843,473.02
Specific payables
Provisions
Deferred income 80,889,176.24 80,580,249.14
Deferred income tax liabilities 94,050.00 4,950.00
Other non-current liabilities
Total non-current liabilities 174,826,699.26 174,428,672.16
Total liabilities 1,402,905,866.07 1,285,225,444.37
Owners’ equity:
Share capital 922,602,311.00 922,602,311.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 759,836,702.91 759,836,702.91
Less: Treasury shares
Other comprehensive income 532,950.00 28,050.00
Specific reserve
Surplus reserves 959,824,839.42 959,824,839.42
Retained earnings 3,734,663,636.45 3,630,102,526.37
Total owners’ equity 6,377,460,439.78 6,272,394,429.70
Total liabilities and owners’ equity 7,780,366,305.85 7,557,619,874.07
17
Lu Thai Textile Co., Ltd. First Quarter Report 2018
3. Consolidated Income Statement
Unit: RMB
Item January-March 2018 January-March 2017
1. Operating revenue 1,520,075,607.17 1,275,925,984.80
Including: Sales revenue 1,520,075,607.17 1,275,925,984.80
Interest revenue
Premium revenue
Handling charge and commission
revenue
2. Cost of operating revenue 1,350,782,281.17 1,078,187,498.30
Including: Cost of sales 1,085,683,246.68 861,673,738.94
Interest expense
Handling charge and commission
expense
Surrenders
Net claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 27,882,652.80 22,307,609.32
Selling expense 30,483,720.76 33,468,425.19
Administrative expense 163,683,868.07 152,079,558.73
Finance costs 43,774,185.06 12,307,415.76
Asset impairment losses -725,392.20 -3,649,249.64
Add: Gain on changes in fair value (“-”
7,895,000.00
for loss)
Investment income (“-” for loss) 2,439,952.13 598,500.00
Including: Share of profit or loss of
-56,232.67
joint ventures and associates
Foreign exchange gain (“-” for loss)
Asset disposal income (“-” for loss) -300,994.82 -863,142.70
Other income 13,262,821.51 6,081,296.64
3. Operating income (“-” for loss) 192,590,104.82 203,555,140.44
Add: Non-operating revenue 1,182,734.22 1,217,613.71
Less: Non-operating expense 1,054,317.03 3,448,846.28
18
Lu Thai Textile Co., Ltd. First Quarter Report 2018
4. Pretax income (“-” for loss) 192,718,522.01 201,323,907.87
Less: Income tax expense 27,669,680.25 34,425,547.44
5. Net income (“-” for net loss) 165,048,841.76 166,898,360.43
5.1 Net income from continuing
165,048,841.76 166,898,360.43
operations (“-” for net loss)
5.2 Net income from discontinued
operations (“-” for net loss)
Attributable to owners of Parent
159,278,371.57 159,008,371.62
Company
Attributable to non-controlling
5,770,470.19 7,889,988.81
interests
6. Other comprehensive income, net of
-21,450,491.60 -3,925,723.62
tax
Attributable to owners of Parent
-21,450,491.60 -3,925,723.62
Company
6.1 Items that will not be
reclassified to profit or loss
6.1.1 Changes in net liabilities or
assets caused by re-measurements on
defined benefit pension schemes
6.1.2 Share of other
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method
6.2 Items that may subsequently be
-21,450,491.60 -3,925,723.62
reclassified to profit or loss
6.2.1 Share of other
comprehensive income of investees that
will be reclassified to profit or loss under
equity method
6.2.2 Gains/Losses on changes in
fair value of available-for-sale financial 504,900.00
assets
6.2.3 Gains/Losses arising from
reclassification of held-to-maturity
investments to available-for-sale financial
assets
6.2.4 Effective gains/losses on
cash flow hedges
6.2.5 Differences arising from
translation of foreign -21,955,391.60 -3,925,723.62
currency-denominated financial
19
Lu Thai Textile Co., Ltd. First Quarter Report 2018
statements
6.2.6 Other
Attributable to non-controlling
interests
7. Total comprehensive income 143,598,350.16 162,972,636.81
Attributable to owners of Parent
137,827,879.97 155,082,648.00
Company
Attributable to non-controlling
5,770,470.19 7,889,988.81
interests
8. Earnings per share
8.1 Basic earnings per share 0.17 0.17
8.2 Diluted earnings per share 0.17 0.17
Where business mergers under the same control occurred in the current period, the net income achieved by the merged parties before
the business mergers was RMB , with the amount for the same period of last year being RMB .
Legal representative: Liu Zibin The Company’s chief accountant: Zhang Hongmei
The Company’s financial manager: Zhang Keming
4. Parent Company Income Statement
Unit: RMB
Item January-March 2018 January-March 2017
1. Sales revenue 1,162,278,986.58 1,078,892,478.02
Less: Cost of sales 871,297,002.70 768,104,469.94
Taxes and surtaxes 21,573,452.57 16,363,855.87
Selling expense 17,199,119.93 20,865,997.90
Administrative expense 112,651,019.32 101,447,551.05
Finance costs 22,144,987.67 3,528,511.56
Asset impairment losses 1,683,200.50 -2,657,643.03
Add: Gain on changes in fair value
6,736,100.00
(“-” for loss)
Investment income (“-” for loss) 1,461,867.85 598,500.00
Including: Share of profit or loss
-56,232.67
of joint ventures and associates
Asset disposal income (“-” for
-8,943,719.11 60,973.24
loss)
Other income 8,296,822.90 5,130,542.20
2. Operating income (“-” for loss) 123,281,275.53 177,029,750.17
20
Lu Thai Textile Co., Ltd. First Quarter Report 2018
Add: Non-operating revenue 899,417.77 1,249,329.62
Less: Non-operating expense 335,839.31 3,131,888.90
3. Pretax income (“-” for loss) 123,844,853.99 175,147,190.89
Less: Income tax expense 19,283,743.91 27,186,021.23
4. Net income (“-” for net loss) 104,561,110.08 147,961,169.66
4.1 Net income from continuing
104,561,110.08 147,961,169.66
operations (“-” for net loss)
4.2 Net income from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
504,900.00
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes in net liabilities or
assets caused by re-measurements on
defined benefit pension schemes
5.1.2 Share of other
comprehensive income of investees that
will not be reclassified into profit or
loss under equity method
5.2 Items that may subsequently be
504,900.00
reclassified to profit or loss
5.2.1 Share of other
comprehensive income of investees that
will be reclassified into profit or loss
under equity method
5.2.2 Gains/Losses on changes in
fair value of available-for-sale financial 504,900.00
assets
5.2.3 Gains/Losses arising from
reclassification of held-to-maturity
investments to available-for-sale
financial assets
5.2.4 Effective gains/losses on
cash flow hedges
5.2.5 Differences arising from
translation of foreign
currency-denominated financial
statements
5.2.6 Other
6. Total comprehensive income 105,066,010.08 147,961,169.66
21
Lu Thai Textile Co., Ltd. First Quarter Report 2018
7. Earnings per share
7.1 Basic earnings per share 0.11 0.16
7.2 Diluted earnings per share 0.11 0.16
5. Consolidated Cash Flow Statement
Unit: RMB
Item January-March 2018 January-March 2017
1. Cash generated by or used in
operating activities:
Proceeds from sale of commodities
1,481,659,910.33 1,363,479,554.57
and rendering of services
Net increase in customer deposits
and deposits from banks and other
financial institutions
Net increase in loans from central
bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Net increase in proceeds from
disposal of financial assets at fair value
through profit or loss
Interest, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Tax rebates 70,407,971.68 47,097,687.87
Cash generated by other operating
37,904,123.48 37,616,268.66
activities
Subtotal of cash generated by operating
1,589,972,005.49 1,448,193,511.10
activities
Payments for commodities and
860,039,261.70 877,736,029.78
services
Net increase in loans and advances
0.00
to customers
22
Lu Thai Textile Co., Ltd. First Quarter Report 2018
Net increase in deposits in central
0.00
bank and in interbank loans granted
Payments for claims on original
0.00
insurance contracts
Interest, handling charges and
0.00
commissions paid
Policy dividends paid 0.00
Cash paid to and for employees 496,773,800.61 478,422,424.60
Taxes paid 68,934,998.71 91,094,590.03
Cash used in other operating
80,105,117.34 76,693,784.92
activities
Subtotal of cash used in operating
1,505,853,178.36 1,523,946,829.33
activities
Net cash flows from operating
84,118,827.13 -75,753,318.23
activities
2. Cash generated by or used in
investing activities:
Proceeds from disinvestments
Investment income
Net proceeds from disposal of
property, plant and equipment,
544,564.38 451,988.35
intangible assets and other long-lived
assets
Net proceeds from disposal of
subsidiaries or other business units
Cash generated by other investing
4,259,032.24 70,980,953.36
activities
Subtotal of cash generated by investing
4,803,596.62 71,432,941.71
activities
Payments for acquisition of property,
plant and equipment, intangible assets 112,575,998.71 183,689,391.11
and other long-lived assets
Payments for investments
Net increase in pledged loans
granted
Net payments for acquisition of
subsidiaries and other business units
Cash used in other investing
0.00
activities
Subtotal of cash used in investing
112,575,998.71 183,689,391.11
activities
Net cash flows from investing activities -107,772,402.09 -112,256,449.40
23
Lu Thai Textile Co., Ltd. First Quarter Report 2018
3. Cash generated by or used in
financing activities:
Capital contributions received 500,000.00
Including: Capital contributions
by non-controlling interests to
subsidiaries
Increase in borrowings obtained 736,133,783.53 465,765,338.71
Net proceeds from issuance of bonds
Cash generated by other financing
21,300,000.00 0.00
activities
Subtotal of cash generated by financing
757,933,783.53 465,765,338.71
activities
Repayment of borrowings 484,376,409.32 287,319,968.88
Payments for interest and dividends 9,855,785.25 5,465,132.73
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
0.00
activities
Subtotal of cash used in financing
494,232,194.57 292,785,101.61
activities
Net cash flows from financing
263,701,588.96 172,980,237.10
activities
4. Effect of foreign exchange rate
-7,731,641.43 -4,087,782.11
changes on cash and cash equivalents
5. Net increase in cash and cash
232,316,372.57 -19,117,312.64
equivalents
Add: Cash and cash equivalents,
676,639,212.86 659,116,137.67
beginning of the period
6. Cash and cash equivalents, end of
908,955,585.43 639,998,825.03
the period
6. Parent Company Cash Flow Statement
Unit: RMB
Item January-March 2018 January-March 2017
1. Cash generated by or used in
operating activities:
Proceeds from sale of commodities
1,402,617,102.18 1,162,666,666.42
and rendering of services
Tax rebates 49,708,933.68 32,804,612.04
Cash generated by other operating
15,058,269.35 12,626,116.36
activities
24
Lu Thai Textile Co., Ltd. First Quarter Report 2018
Subtotal of cash generated by operating
1,467,384,305.21 1,208,097,394.82
activities
Payments for commodities and
917,764,028.02 685,725,106.60
services
Cash paid to and for employees 358,009,124.41 346,132,598.78
Taxes paid 44,479,611.73 46,951,812.96
Cash used in other operating
31,339,072.23 45,317,103.44
activities
Subtotal of cash used in operating
1,351,591,836.39 1,124,126,621.78
activities
Net cash flows from operating
115,792,468.82 83,970,773.04
activities
2. Cash generated by or used in
investing activities:
Proceeds from disinvestments
Investment income
Net proceeds from disposal of
property, plant and equipment,
64,995,332.71 466,988.35
intangible assets and other long-lived
assets
Net proceeds from disposal of
subsidiaries or other business units
Cash generated by other investing
244,162,209.77 1,972,088.44
activities
Subtotal of cash generated by investing
309,157,542.48 2,439,076.79
activities
Payments for acquisition of property,
plant and equipment, intangible assets 43,650,645.56 12,742,051.92
and other long-lived assets
Payments for investments 256,206,500.00 0.00
Net payments for acquisition of
subsidiaries and other business units
Cash used in other investing
167,497,600.00 1,000,000.00
activities
Subtotal of cash used in investing
467,354,745.56 13,742,051.92
activities
Net cash flows from investing activities -158,197,203.08 -11,302,975.13
3. Cash generated by or used in
financing activities:
Capital contributions received
Increase in borrowings obtained 475,339,258.78 268,549,314.61
25
Lu Thai Textile Co., Ltd. First Quarter Report 2018
Net proceeds from issuance of bonds
Cash generated by other financing
activities
Subtotal of cash generated by financing
475,339,258.78 268,549,314.61
activities
Repayment of borrowings 283,270,165.87 189,708,180.44
Payments for interest and dividends 4,169,374.27 2,366,745.41
Cash used in other financing
activities
Sub-total of cash used in financing
287,439,540.14 192,074,925.85
activities
Net cash flows from financing
187,899,718.64 76,474,388.76
activities
4. Effect of foreign exchange rate
-2,410,353.03 -1,491,082.46
changes on cash and cash equivalents
5. Net increase in cash and cash
143,084,631.35 147,651,104.21
equivalents
Add: Cash and cash equivalents,
267,809,829.78 177,016,859.63
beginning of the period
6. Cash and cash equivalents, end of
410,894,461.13 324,667,963.84
the period
II Independent Auditor’s Report
Indicate by tick mark whether the Q1 financial statements have been audited by an independent auditor.
□Yes √ No
The Q1 financial statements have not been audited by such an auditor.
Board Chairman: Liu Zibin
Lu Thai Textile Co., Ltd.
April 27, 2018
26
