LU THAI TEXTILE CO., LTD.
THE FIRST QUARTERLY REPORT 2009
§1. Important Notice
1.1 The Board of Directors, the Supervisory Committee and directors, supervisors and
senior management of Lu Thai Textile Co., Ltd. (hereinafter referred to as “the
Company”) warrant that this report does not contain any false or misleading
statements or omit any material facts, and will take all responsibilities, individual and
joint for the authenticity, accuracy and completeness of the report.
1.2 The financial report of the first quarter of 2009 has not been audited.
1.3 Mr. Liu Shizhen, person in charge of the Company, Ms. Zhang Hongmei, Chief
Financial Officer and concurrently person in charge of accounting organ, hereby
confirmed that the Financial Report enclosed in Quarterly Report is true and
complete.
§2 Company Profile
2.1 Main accounting data and financial indicators
Unit: RMB Yuan
At the end of this report
period
At the same period of last
year
Increase/decrease (％)
Total assets 6,439,093,924.65 7,091,853,104.80 -9.20%
Owners’ equity attributable to parent company 3,633,133,400.96 3,541,234,661.44 2.60%
Share capital 994,864,800.00 994,864,800.00 0.00%
Net assets per share attributable to owners parent company 3.65 3.56 2.53%
In this report period The same period of last year Increase/decrease (％)
Operating revenue 842,468,539.81 924,749,048.45 -8.90%
Net profit attributable to owners parent company 122,078,955.79 145,972,780.39 -16.37%
Net cash flow arising from operating activities 97,291,541.21 78,703,313.99 23.62%
Net cash flow per share arising from operating activities 0.10 0.09 11.11%
Basic earnings per share 0.12 0.17 -29.41%
Diluted earnings per share 0.12 0.17 -29.41%
Return on equity 3.36% 6.09% -2.73%
Return on equity after deducting non-recurring gains and
losses
3.23% 6.11% -2.88%
Items of non-recurring gains and losses
Amount from the year-begin
to the period-endGains and losses from disposal of non-current assets -30,898.65
Government subsidies recorded into current gains and losses, excluding government subsidies with close
relationship with the Company’s routine operation and rationed government grants in line with the united
standard and the state policy
8,798,650.53
Gains and losses from changes in fair value due to transaction financial assets and liabilities, and
investment
income from disposal of transaction financial assets, transaction financial liabilities and financial
assets available
for sale, excluding valid hedging related to routine operation of the Company
-1,061,300.00
Net amount of non-operating income and expense except the aforesaid items -141,175.24
Less: Impact on income tax -1,603,500.98
Net non-recurring gains and losses attributable to minority shareholders -1,205,000.74
Total 4,756,774.92
Explanation on items of non-recurring gains and losses
Naught
2.2 Total number of shareholders at the end of the report period and statement on
shares held by the top ten shareholders with shares not subject to trading moratorium
Unit: share
Total number of shareholders 143,772
Particulars about shares held by the top ten tradable shareholders
Full name of shareholder
Shares not subject to trading
moratorium held at the period-end
Type of shares
Zibo Lucheng Textile Investment Co., Ltd 24,956,700 RMB ordinary shares
DBS VICKBRS(HONG KONG)LTD A/C CLIENTS 40,996,252 Domestically listed foreign shares
FullGoal Tianrui Favorable Regions Selected Mixed Open-ended
Securities Investment Fund
14,955,259 RMB ordinary shares
Guotai Jinma Stable Return Securities Investment Fund 11,479,190 RMB ordinary shares
GUOTAI JUNAN SECURIES HONG KONG LIMITED 8,576,832 Domestically listed foreign shares
Greatwall Jiufu Core Growth Stock Fund 8,465,026 RMB ordinary shares
HuaAn Innovations Securities Investment Fund 6,574,147 RMB ordinary shares
Wang Xing 6,300,000 Domestically listed foreign shares
DAIWA SECS EMBC AC ITOCHU HONG KONG LTD 6,000,000 Domestically listed foreign shares
Fortune SGAM Industry Selected Shares Securities Investment Fund 5,799,126 RMB ordinary shares
§3 Significant Events
3.1 Particulars about large-margin change of main accounting statement item and
financial index and its reason
□Applicable √Inapplicable
3.2 The progress of significant events and analysis and explanation on influence and
solution
□Applicable √Inapplicable3.3 Implementation of commitments made by the Company, shareholders and actual
controller
√Applicable □Inapplicable
Commitment Content Execution
Commitments of share merger reform
The Company will not reduce the holding shares within 60 months
after share merger reform, within 24 months after expiration, the price
of sold shares shall not be lower than RMB 15 per share (if the share
capital changes, ex-rights will be conducted); it proposed and voted for
a cash distribution not lower than 50% of the profit available for
distribution in the year at the 2006 Shareholders’ General Meeting and
2007 Shareholders’ General Meeting; it will increase holding Lutai A
shares through trading at the secondary market with the dividends
received in 2005 and 2006, and the increase of the Luthai A shares held
shall be accomplished within 12 months after the dividend is
transferred to its account. In 2008, the total profit increased by not less
than 30% compared with that in 2005.
The increase of dividend shares in
2005 and 2006 has been
implemented.
Total profit in 2008 has increased
58.6% compared with that in 2005.
Commitment of shares subject to
trading moratorium
The Company will not reduce the holding shares within 60 months
after share merger reform, within 24 months after expiration, the price
of sold shares shall not be lower than RMB 15 per share (if the share
capital changes, ex-rights will be conducted)
In progress of execution
Commitments made in Acquisition
Report or Report on Changes in Equity
Naught Naught
Commitments made in reorganization
of significant assets
Naught Naught
Commitments made when issuance of
shares
1. Project on 150-thousand Ingot Top-grade Fine Combed Yarns; 2.
5,000 Ingot two-for-one production line Project; 3. Production Line
Project for 10-million-meter Top-grade Jacquard Fabrics for Women’s
Wear; 4. Project on Establishment of Marketing Network; 5. Project on
Supplementing Current Capital.
Project on 150-thousand Ingot
Top-grade Fine Combed Yarns and
Project on Supplementing Current
Capital has been accomplished;
other projects was in progress.
Other commitments (including
additional commitments)
Naught Naught
3.4 Warnings of possible loss or large-margin change of the accumulated net profit
made during the period from the beginning of the year to the end of the next report
period compared with the same period of the last year according to prediction, as well
as explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events
3.5.1 Securities investment□Applicable √Inapplicable
3.5.2 Reception of investigation, communication and interviews in the report period
Reception
date
Reception site Receptio
n way
Reception object Topic discussed and material
provided
Jan. 13,
2009
Reception room
of the Company
Field
research
Zhang Dongyi, form R&D Department of
GF Fund Management Co., Ltd
Field research and basic
information of the Company
Feb. 3,
2009
Reception room
of the Company
Field
research
Cheng Zhou and Li Jie, respectively Fund
Manager and Vice Chief Research Officer in
Guotai Asset Management Co., Ltd
Field research and basic
information of the Company
Feb. 10,
2009
Reception room
of the Company
Field
research
Wang Yan, researcher of Research Department
in Bosera Funds
Field research and basic
information of the Company
Feb. 10,
2009
Reception room
of the Company
Field
research
Wang Jiaqin, researcher of Research
Department in Bosera Funds
Field research and basic
information of the Company
Feb. 10,
2009
Reception room
of the Company
Field
research
Sun Zhanjun, Fund Manager of Bosera Funds
Field research and basic
information of the Company
Feb. 10,
2009
Reception room
of the Company
Field
research
Xia Chun, Fund Manager and Chief Research
Officer of Bosera Funds
Field research and basic
information of the Company
Feb. 11,
2009
Reception room
of the Company
Field
research
Wang Wei, researcher of China Merchant
Securities
Field research and basic
information of the Company
Feb. 11,
2009
Reception room
of the Company
Field
research
Wang Liang, researcher of Shanxi Securities
Co., Ltd
Field research and basic
information of the Company
Feb. 11,
2009
Reception room
of the Company
Field
research
Wang Ran, researcher of Yimin Asset
Management Co., Ltd
Field research and basic
information of the Company
Feb. 11,
2009
Reception room
of the Company
Field
research
Li Mei, researcher of Tianhong Asset
Management Co., Ltd
Field research and basic
information of the Company
Feb. 11,
2009
Reception room
of the Company
Field
research
Zhu Yu, researcher of Genertec Investment
Managers Ltd
Field research and basic
information of the Company
Feb. 17,
2009
Reception room
of the Company
Field
research
Xu Yun, Director of Researcher in Changfeng
China R&D Co., Ltd, China Area
Field research and basic
information of the Company
Feb. 17,
2009
Reception room
of the Company
Field
research
Liang Qingxin, form Shenyin Wanguo
Securities (Hongkong) Co., Ltd
Field research and basic
information of the Company
Feb. 19,
2009
Reception room
of the Company
Field
research
Researcher of Changsheng Fund Management
Co., Ltd—Wang Xuesong
Field research and basic
information of the Company
Feb. 19,
2009
Reception room
of the Company
Field
research
Zhang Xinhong, researcher of Hongyuan
Securities
Field research and basic
information of the Company
Mar. 5,
2009
Reception room
of the Company
Field
research
Liu Xinyu, senior manager of Futures Dealing
Department in Citic Securities Co., Ltd
Field research and basic
information of the Company
Mar. 5,
2009
Reception room
of the Company
Field
research
Li Junsong, from China Securities Co., Ltd
Field research and basic
information of the Company
Mar. 6,
2009
Reception room
of the Company
Field
research
Zhang Qi, researcher of Southwest Securities
Co., Ltd
Field research and basic
information of the Company3.5.3 Explanation on other significant
□Applicable √Inapplicable
§4 Appendix
4.1 Balance sheet
Prepared by Lu Thai Textile Co., Ltd. 31 Mar. 2009 Unit: RMB Yuan
Balance at the period-end Balance at the year-begin
Items
Consolidation Parent company Consolidation Parent company
Current Assets:
Monetary funds 713,900,740.87 470,621,642.78 1,141,056,407.10 884,493,526.89
Transaction financial asset
Notes receivable 73,599,021.70 66,322,736.80 115,766,743.82 88,437,756.14
Account receivable 116,389,955.16 122,261,442.61 134,272,568.99 137,704,448.03
Account paid in advance 78,107,442.36 443,083,613.99 86,680,244.30 442,840,255.08
Interest receivable
Dividend receivable 552,121.45 552,121.45
Other account receivable 44,553,175.72 42,685,304.39 66,112,475.26 57,153,026.22
Buying back the sale of financial assets
Inventories 1,274,816,209.49 850,756,478.57 1,370,058,113.59 966,434,830.65
Non-current assets due within 1 year
Other current assets
Total current assets 2,301,366,545.30 1,996,283,340.59 2,913,946,553.06 2,577,615,964.46
Non-current assets:
Available for sale financial assets
Held to maturity investments
Long-term account receivable
Long-term equity investment 842,312,463.64 840,477,933.96
Investing property
Fixed assets 3,681,997,202.11 2,119,864,683.66 3,728,662,446.22 2,137,168,614.91
Construction in progress 168,622,013.94 153,235,654.21 161,798,386.96 152,673,189.70
Engineering material 10,056,733.02 10,056,733.02 5,976,824.75 5,976,824.75
Disposal of fixed assets
Productive biological assets
Intangible assets 225,069,740.50 119,567,483.55 227,300,618.82 120,808,081.41
Development expense
Goodwill 20,563,803.29 20,563,803.29
Long-term deferred expenses
Deferred tax assets 31,417,886.49 9,343,313.86 33,604,471.70 9,343,313.86
Other non-current assets
Total of non-current assets 4,137,727,379.35 3,254,380,331.94 4,177,906,551.74 3,266,447,958.59
Total assets 6,439,093,924.65 5,250,663,672.53 7,091,853,104.80 5,844,063,923.05Current liabilities:
Short-term borrowings 1,386,403,900.00 503,553,900.00 1,974,333,875.02 924,333,875.02
Transaction financial liabilities 34,896,400.00 23,190,400.00 19,175,600.00 5,840,400.00
Notes payable 173,387,813.80 486,203,725.41 326,906,148.43 764,122,919.05
Account payable 313,163,516.05 200,042,816.41 309,404,705.97 177,966,339.10
Account received in advance 35,600,594.92 17,235,438.00 31,742,845.89 14,267,650.87
Payroll payable 142,367,421.02 120,961,872.65 225,950,673.18 193,302,167.29
Tax payable 104,576.81 -8,748,383.42 -26,278,169.38 -37,631,581.33
Interest payable 220,839.91 220,839.91 84,631.63 84,631.63
Dividend payable 442,844.04 442,844.04
Other account payable 117,141,907.46 16,251,999.80 86,031,960.95 16,327,454.16
Non-current liabilities due within 1 year 51,621,380.00 51,621,380.00 52,183,370.00 52,183,370.00
Other current liabilities
Total current liabilities 2,254,908,349.97 1,410,976,832.80 2,999,535,641.69 2,111,240,069.83
Non-current liabilities:
Long-term borrowings 308,539,030.00 308,539,030.00 298,510,560.00 298,510,560.00
Bonds payable
Long-term payables 9,735,560.00 9,735,560.00
Deferred tax liabilities 407,495.47 407,449.26
Other non-current liabilities 2,673,445.33 2,673,445.33
Total non-current liabilities 321,355,530.80 308,539,030.00 311,327,014.59 298,510,560.00
Total liabilities 2,576,263,880.77 1,719,515,862.80 3,310,862,656.28 2,409,750,629.83
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 994,864,800.00 994,864,800.00 994,864,800.00 994,864,800.00
Capital reserves 1,135,350,952.80 1,125,522,201.27 1,128,135,713.77 1,125,522,201.27
Less: Treasury stock
Surplus reserves 330,662,535.20 330,662,535.20 330,662,535.20 330,662,535.20
Provisions for general risks
Retained profits 1,175,452,593.89 1,080,098,273.26 1,090,990,313.22 983,263,756.75
Foreign exchange difference -3,197,480.93 -3,418,700.75
Total owners' equity attributable to parent company 3,633,133,400.96 3,531,147,809.73 3,541,234,661.44
3,434,313,293.22
Minority interest 229,696,642.92 239,755,787.08
Total shareholder’s equity 3,862,830,043.88 3,531,147,809.73 3,780,990,448.52 3,434,313,293.22
Total liabilities and shareholder’s equity 6,439,093,924.65 5,250,663,672.53 7,091,853,104.80
5,844,063,923.05
4.2 Income statement
Prepared by Lu Thai Textile Co., Ltd. Jan.-Mar. 2009 Unit: RMB Yuan
Amount of this period Amount of last period
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 842,468,539.81 708,651,373.05 924,749,048.45 776,134,026.63
Including: Sales income 842,468,539.81 708,651,373.05 924,749,048.45 776,134,026.63
II. Total cost of sales 705,616,763.27 596,724,389.40 748,035,223.91 612,873,134.06Including: Cost of sales
625,877,550.81 556,121,098.03 661,819,541.24 579,998,152.86
Taxes and associate charges 901,220.96 946,920.68
Selling expenses 33,212,916.46 11,026,285.95 29,843,745.46 10,788,153.34
Administrative expenses 39,369,702.24 20,727,235.78 34,273,819.68 16,698,704.28
Financial expenses 18,222,960.04 8,849,769.64 18,222,480.16 5,388,123.58
Assets impairment loss -11,967,587.24 2,928,716.69
Add: Gain/(loss) from change in fair value (“-” means loss) 1,629,200.00
Gain/(loss) from investment (“-” means loss) -2,690,500.00 -832,500.00 -1,025,722.60
Including: income form investment on affiliated
enterprise and jointly enterprise
Foreign exchange difference (“-” means loss)
III. Business profit (“-” means loss) 135,790,476.54 111,094,483.65 175,688,101.94 163,260,892.57
Add: non-operation income 10,001,231.22 3,235,579.73 1,547,051.75 988,294.32
Less: non-business expense 1,374,654.58 407,102.78 759,242.02 357,393.37
Including: loss from non-current asset disposal
IV. Total profit (“-” means loss) 144,417,053.18 113,922,960.60 176,475,911.67 163,891,793.52
Less: income tax expense 23,347,472.84 17,088,444.09 31,334,413.75 24,583,769.03
V. Net profit (“-” means loss) 121,069,580.34 96,834,516.51 145,141,497.92 139,308,024.49
Attributable to parent company 122,078,955.79 96,834,516.51 145,972,780.39 139,308,024.49
Minority interest -1,009,375.45 -831,282.47
VI. Earnings per share
(I) Basic earnings per share 0.12 0.10 0.17 0.16
(II) Diluted earnings per share 0.12 0.10 0.17 0.16
4.3 Cash Flow Statement
Prepared by Lu Thai Textile Co., Ltd. Jan.-Mar. 2009 Unit: RMB Yuan
Amount of this period Amount of last period
Items
Consolidation Parent company Consolidation Parent company
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of
service
901,371,132.80 807,027,692.90 931,147,018.57 790,952,707.69
Tax refunds received 37,017,779.42 33,070,986.17 4,501,500.96 3,639,087.76
Other cash received relating to operating activities 168,097,933.85 156,814,360.71 108,488,885.14
33,044,754.49
Subtotal of cash inflows from operating activities 1,106,486,846.07 996,913,039.78 1,044,137,404.67
827,636,549.94
Cash paid for goods and services 740,866,238.79 811,391,637.98 726,757,992.84 519,075,427.85
Cash paid to and for employees 184,409,846.08 144,724,643.69 178,199,122.29 139,292,805.75
Various taxes paid 29,723,132.28 849,751.00 36,693,968.78 17,605,880.29
Payment of cash relating to operating activities 54,196,087.71 23,586,767.62 23,783,006.77 27,050,029.96
Subtotal of cash outflows from operating activities 1,009,195,304.86 980,552,800.29 965,434,090.68
703,024,143.85
Net cash flows from operating activities 97,291,541.21 16,360,239.49 78,703,313.99 124,612,406.09
II. Cash Flows from investment activities:
Cash received from return of investmentsCash received from investment income
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets
122,481.34 122,481.34 650.00 650.00
Net cash received from disposal of subsidiary or other
operating business units
Other cash received relating to investment activities 2,195,331.67 1,422,772.04 4,082,029.89 3,744,626.60
Subtotal of cash inflows from investment activities 2,317,813.01 1,545,253.38 4,082,679.89 3,745,276.60
Cash paid to acquire fixed assets, intangible assets and other
long-term assets
51,071,753.91 29,152,703.45 192,319,097.43 93,469,466.58
Cash paid to investment
Net cash used in acquiring subsidiaries and other operating
units
Payment of cash relating to other investment activities 171,000,000.00
Subtotal of cash outflows from investment activities 51,071,753.91 29,152,703.45 192,319,097.43
264,469,466.58
Net cash flows from investment activities -48,753,940.90 -27,607,450.07 -188,236,417.54 -260,724,189.98
III. Cash Flows from financing activities:
Cash received from absorbing investment
Including: Cash received from increase in minority interest
Cash received from borrowings 562,389,000.00 368,389,000.00 615,992,000.00 490,000,000.00
Cash received from issuance of bonds
Other cash received relating to financing activities 3,000,000.00 12,000,000.00
Subtotal of cash inflows from financing activities 565,389,000.00 368,389,000.00 615,992,000.00
502,000,000.00
Cash repayments of amounts borrowed 1,036,310,877.57 775,160,877.57 294,261,299.96 141,261,299.96
Cash paid interest expenses and distribution of dividends or
profit
19,325,791.58 12,230,469.24 28,929,241.88 14,771,829.75
Including: dividends or profit paid to minority interest
Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities 1,055,636,669.15 787,391,346.81 323,190,541.84
156,033,129.71
Net cash flow from financing activities -490,247,669.15 -419,002,346.81 292,801,458.16 345,966,870.29
IV. Effect of foreign exchange rate changes on cash and cash
equivalents
14,554,402.61 16,377,673.28 8,790,755.82 6,015,882.54
V. Increase in cash and cash equivalents -427,155,666.23 -413,871,884.11 192,059,110.43 215,870,968.94
Add: Cash and cash equivalents at the period-begin 1,141,056,407.10 884,493,526.89 330,766,143.96
177,334,931.66
VI. Cash and cash equivalents at the period-end 713,900,740.87 470,621,642.78 522,825,254.39 393,205,900.60
