Lu Thai Textile Co., Ltd. Third Quarterly Report 2022
Stock Code: 000726, 200726 Stock Name: LTTC, LTTC-B Announcement No. 2022-088
Bond Code: 127016 Bond Name: LTTC Convertible Bonds
LU THAI TEXTILE CO., LTD.
THIRD QUARTERLY REPORT 2022
Lu Thai Textile Co., Ltd. (hereinafter referred to as the “Company”) and all the members of the
Company’s Board of Directors hereby guarantee that the contents of this Report are true, accurate and
complete and free of any misrepresentations, misleading statements or material omissions.
Important Notes:
1. The Board of Directors, the Supervisory Committee as well as the directors, supervisors and senior
management of the Company hereby guarantee that the contents of this Report are true, accurate and complete
and free of any misrepresentations, misleading statements or material omissions, and collectively and
individually accept legal responsibility for such contents.
2. The Company’s legal representative, chief accountant and financial manager hereby guarantee that the
financial statements carried in this Report are true, accurate and complete.
3. Indicate whether the financial statements in this Report have been audited by an independent auditor.
□Yes No
I Key Financial Information
(I) Key Accounting Data and Financial Indicators
Indicate whether there is any retrospectively restated datum in the table below.
□Yes No
Q3 2022 YoY change (%) Q1-Q3 2022 YoY change (%)
Operating revenue (RMB) 1,876,128,426.25 39.35% 5,206,422,889.50 45.97%
Net profit attributable to the listed company’s
shareholders (RMB) 302,015,616.54 222.44% 695,966,469.00 181.58%
Net profit attributable to the listed company’s
shareholders before exceptional gains and 322,056,642.38 299.12% 687,635,872.02 409.46%
losses (RMB)
Net cash generated from/used in operating
activities (RMB) — — 729,088,822.32 197.99%
Basic earnings per share (RMB/share) 0.35 218.18% 0.80 185.71%
Diluted earnings per share (RMB/share) 0.29 190.00% 0.68 161.54%
Weighted average return on equity (%) 3.48% 2.30% 8.25% 5.10%
30 September 2022 31 December 2021 Change (%)
Total assets (RMB) 13,352,889,226.11 12,987,221,271.63 2.82%
Equity attributable to the listed company’s
shareholders (RMB) 8,800,011,251.33 7,983,307,400.03 10.23%
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2022
(II) Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RMB
Item Q3 2022 Q1-Q3 2022 Note
Gain or loss on disposal of non-current assets (inclusive of
impairment allowance write-offs) -1,465,459.22 1,230,616.81
Government grants through profit or loss (exclusive of government
grants continuously given in the Company’s ordinary course of
business at fixed quotas or amounts as per the government’s 16,223,403.35 43,944,175.72
policies and standards)
Gain or loss on fair-value changes on held-for-trading financial
assets and liabilities & income from disposal of held-for-trading
financial assets and liabilities and available-for-sale financial assets -40,231,560.83 -34,637,019.39
(exclusive of the effective portion of hedges that arise in the
Company’s ordinary course of business)
Reverse of provision for impairment of accounts receivable
individually conducting impairment test 264,555.74 659,816.30
Non-operating income and expense other than the above 1,257,102.21 2,090,163.27
Less: Income tax effects -3,590,330.72 5,027,998.78
Non-controlling interests effects (net of tax) -320,602.19 -70,843.05
Total -20,041,025.84 8,330,596.98 --
Other items that meet the definition of exceptional gain/loss:
□Applicable Not applicable
No such cases in the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement
No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□Applicable Not applicable
No such cases in the Reporting Period.
(III) Changes in Key Financial Information and Explanation of why
Applicable □ Not applicable
Item Change (%) Main reason for change
Q3 2022:
Operating revenue 39.35
Net profit attributable to the listed company’s
222.44 YoY increase in sales volume
shareholders
Net profit attributable to the listed company’s
299.12
shareholders before exceptional gains and losses
Basic earnings per share 218.18
Increase in Q3 net profit
Diluted earnings per share 190.00
Q1-Q3 2022:
Operating revenue 45.97
Net profit attributable to the listed company’s
181.58 YoY increase in sales volume
shareholders
Net profit attributable to the listed company’s
409.46
shareholders before exceptional gains and losses
Net cash generated from/used in operating activities 197.99 Increase in cash generated from selling goods and
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2022
rendering labor services
Basic earnings per share 185.71
Increase in Q1-Q3 net profit
Diluted earnings per share 161.54
II Shareholder Information
(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well
as Holdings of Top 10 Shareholders
Unit: share
Number of ordinary shareholders at the period- Number of preferred shareholders with
52,029 0
end resumed voting rights at the period-end (if any)
Top 10 shareholders
Shareho
Nature of Restricted Shares in pledge, marked or frozen
lding Total shares
Name of shareholder sharehold shares
percenta held Status Shares
er held
ge
Domestic
non-state-
Zibo Lucheng Textile Investment
owned 15.81% 140,353,583 0
Co., Ltd.
corporati
on
Foreign
Tailun (Thailand) Textile Co., Ltd. corporati 13.32% 118,232,400 0
on
State-
Central Huijin Assets Management owned
Co., Ltd. corporati 2.24% 19,884,100 0
on
National Social Security Fund
Other 1.27% 11,250,051 0
Portfolio 413
Basic Old-Age Insurance Fund
Other 0.70% 6,175,600 0
Portfolio 1002
Dacheng China Securities Asset
Other 0.59% 5,235,900 0
Management Plan
GF China Securities Asset
Other 0.59% 5,235,900 0
Management Plan
ICBC Credit Suisse Innovation
Power Stock Securities Investment Other 0.57% 5,100,000 0
Fund
FEDERATED HERMES GLOBAL
INVESTMENT FD (CAYMAN) Foreign
MASTER, SPC OBOAFTAO corporati 0.52% 4,623,374 0
FEDERATED HERMES EMG on
ASIA EQUITY FD MASTER S.P.
Harvest China Securities Asset
Other 0.50% 4,460,200 0
Management Plan
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held
Type Shares
RMB-
Zibo Lucheng Textile Investment Co., Ltd. 140,353,583 denominated 140,353,583
ordinary stock
Domestically
Tailun (Thailand) Textile Co., Ltd. 118,232,400 listed foreign 118,232,400
stock
RMB-
Central Huijin Assets Management Co., Ltd. 19,884,100 19,884,100
denominated
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2022
ordinary stock
RMB-
National Social Security Fund Portfolio 413 11,250,051 denominated 11,250,051
ordinary stock
RMB-
Basic Old-Age Insurance Fund Portfolio 1002 6,175,600 denominated 6,175,600
ordinary stock
RMB-
Dacheng China Securities Asset Management
5,235,900 denominated 5,235,900
Plan
ordinary stock
RMB-
GF China Securities Asset Management Plan 5,235,900 denominated 5,235,900
ordinary stock
RMB-
ICBC Credit Suisse Innovation Power Stock
5,100,000 denominated 5,100,000
Securities Investment Fund ordinary stock
FEDERATED HERMES GLOBAL
Domestically
INVESTMENT FD (CAYMAN) MASTER, SPC
4,623,374 listed foreign 4,623,374
OBOAFTAO FEDERATED HERMES EMG stock
ASIA EQUITY FD MASTER S.P.
RMB-
Harvest China Securities Asset Management Plan 4,460,200 denominated 4,460,200
ordinary stock
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
Related or acting-in-concert parties among the shareholders
well as sponsor of foreign capital of the Company. All of other
above
shareholders are people holding public A share or B share and the
Company is not able to confirm whether there is associated
relationship or concerted action among other shareholders.
Top 10 shareholders engaged in securities margin trading (if
Naught
any)
(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□Applicable Not applicable
III Other Significant Events
Applicable □ Not applicable
The Company held the Third Extraordinary General Meeting of 2022 on 15 July 2022, where the Proposal on Repurchase of
Domestically Listed Foreign Shares (B-shares) was approved, and disclosed the Report on Repurchase of Domestically Listed
Foreign Shares (B-shares) on 16 July 2022. On 27 July 2022, the Company carried out the first repurchase. As of 30 September 2022,
the Company had repurchased a total of 14,249,562 B-shares (or 1.61% of the Company’s total share capital) by way of centralized
bidding. With the highest repurchase price being HKD4.78/share and the lowest being HKD4.37/share, the total payment for this
repurchase plan was HKD66,559,744.77 (inclusive of commissions and alike).
IV Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Lu Thai Textile Co., Ltd.
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2022
30 September 2022
Unit: RMB
Item 30 September 2022 1 January 2022
Current assets:
Monetary assets 1,889,863,576.29 1,999,712,889.35
Held-for-trading financial assets 311,315,546.75 1,727,000.00
Derivative financial assets
Notes receivable 213,404,167.86 227,740,247.89
Accounts receivable 664,833,365.40 647,277,198.51
Receivables financing 30,191,407.30 34,663,071.88
Prepayments 87,703,941.00 54,545,954.20
Other receivables 49,732,204.38 74,191,613.22
Including: Interest receivable
Dividends receivable 18,563,298.39 47,025,975.44
Financial assets purchased under resale
agreements
Inventories 2,421,623,168.76 2,345,346,794.28
Other current assets 15,618,937.38 55,992,522.81
Total current assets 5,684,286,315.12 5,441,197,292.14
Non-current assets:
Long-term equity investments 146,348,211.74 169,443,106.66
Investments in other equity instruments
Other non-current financial assets 190,052,000.00 190,052,000.00
Investment property 20,686,276.92 21,362,302.03
Fixed assets 5,596,441,340.88 5,561,601,374.44
Construction in progress 321,599,887.10 237,579,082.99
Right-of-use assets 494,069,197.57 257,019,286.15
Intangible assets 355,365,584.96 363,130,978.14
Development costs
Goodwill 20,563,803.29 20,563,803.29
Long-term prepaid expense 3,392,544.77 672,601.04
Deferred income tax assets 137,203,093.35 138,516,136.50
Other non-current assets 382,880,970.41 586,083,308.25
Total non-current assets 7,668,602,910.99 7,546,023,979.49
Total assets 13,352,889,226.11 12,987,221,271.63
Current liabilities:
Short-term borrowings 766,605,044.24 1,011,034,138.32
Held-for-trading financial liabilities 26,706,972.97
Derivative financial liabilities
Notes payable 55,450,000.00
Accounts payable 145,726,152.83 335,401,371.30
Advances from customers
Contract liabilities 186,158,722.04 204,967,348.96
Employee benefits payable 264,003,641.33 272,014,296.09
Taxes and levies payable 45,821,735.32 29,457,702.72
Other payables 86,873,913.99 97,200,565.31
Including: Interest payable
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2022
Dividends payable 441,113.64 441,113.64
Current portion of non-current liabilities 386,956,288.43 8,877,404.52
Other current liabilities 51,543,542.24 120,434,721.81
Total current liabilities 2,015,846,013.39 2,079,387,549.03
Non-current liabilities:
Long-term borrowings 305,581,331.94 684,962,473.24
Bonds payable 1,425,179,389.91 1,395,480,652.71
Lease liabilities 107,309,720.21 121,357,658.41
Long-term payables
Long-term employee benefits payable 45,933,262.13 57,384,062.39
Provisions
Deferred income 162,826,224.17 188,958,133.78
Deferred income tax liabilities 96,818,985.32 92,571,310.14
Other non-current liabilities
Total non-current liabilities 2,143,648,913.68 2,540,714,290.67
Total liabilities 4,159,494,927.07 4,620,101,839.70
Owners’ equity:
Share capital 887,941,151.00 882,341,295.00
Other equity instruments 71,383,830.75 71,384,656.84
Capital reserves 386,925,309.98 340,587,387.65
Less: Treasury stock 122,187,056.22 78,908,300.00
Other comprehensive income 137,811,310.36 -36,423,748.37
Specific reserve
Surplus reserves 1,215,124,336.54 1,215,124,336.54
General reserve
Retained earnings 6,223,012,368.92 5,589,201,772.37
Total equity attributable to owners of the
Company as the parent 8,800,011,251.33 7,983,307,400.03
Non-controlling interests 393,383,047.71 383,812,031.90
Total owners’ equity 9,193,394,299.04 8,367,119,431.93
Total liabilities and owners’ equity 13,352,889,226.11 12,987,221,271.63
Legal representative: Liu Zibin The Company’s chief accountant: Zhang Keming
The Company’s financial manager: Zhang Keming
2. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2022 Q1~Q3 2021
1. Revenues 5,206,422,889.50 3,566,681,098.18
Including: Operating revenue 5,206,422,889.50 3,566,681,098.18
2. Costs and expenses 4,261,512,476.47 3,437,174,000.38
Including: Cost of sales 3,850,817,744.47 2,878,395,430.90
Taxes and levies 55,064,913.87 43,478,612.19
Selling expense 91,979,470.34 71,833,118.67
Administrative expense 281,331,829.22 224,935,595.96
Development costs 185,127,476.13 192,279,069.87
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2022
Finance costs -202,808,957.56 26,252,172.79
Including: Interest expense 68,286,145.08 47,286,720.59
Interest income 37,133,045.19 26,653,174.94
Add: Other income 42,259,767.72 32,202,552.65
Return on investment (“-” for loss) -7,289,966.58 42,609,424.69
Including: Share of profit or loss of joint ventures and
associates -9,771,373.43 2,390,020.65
Income from the derecognition of financial assets at
amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -37,118,426.22 -7,042,658.55
Credit impairment loss (“-” for loss) -7,461,737.20 8,651,050.43
Asset impairment loss (“-” for loss) -148,491,843.12 -21,801,260.48
Asset disposal income (“-” for loss) 1,214,440.32 57,584,604.74
3. Operating profit (“-” for loss) 788,022,647.95 241,710,811.28
Add: Non-operating income 5,681,260.63 3,710,317.82
Less: Non-operating expense 3,045,887.88 3,289,918.95
4. Gross profit (“-” for loss) 790,658,020.70 242,131,210.15
Less: Income tax expense 85,120,535.89 7,627,638.21
5. Net profit (“-” for net loss) 705,537,484.81 234,503,571.94
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 705,537,484.81 234,503,571.94
5.1.2 Net profit from discontinued operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to shareholders of the Company as
the parent (“-” for net loss) 695,966,469.00 247,163,916.64
5.2.1 Net profit attributable to non-controlling interests (“-” for
net loss) 9,571,015.81 -12,660,344.70
6. Other comprehensive income, net of tax 174,235,058.73 -9,185,149.27
Attributable to owners of the Company as the parent 174,235,058.73 -9,227,723.48
6.1 Items that will not be reclassified to profit or loss
6.1.1 Changes caused by remeasurements on defined benefit
schemes
6.1.2 Other comprehensive income that will not be reclassified
to profit or loss under the equity method
6.1.3 Changes in the fair value of investments in other equity
instruments
6.1.4 Changes in the fair value arising from changes in own
credit risk
6.1.5 Other
6.2 Items that will be reclassified to profit or loss 174,235,058.73 -9,227,723.48
6.2.1 Other comprehensive income that will be reclassified to
profit or loss under the equity method
6.2.2 Changes in the fair value of other debt investments
6.2.3 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for other debt investments
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of foreign
currency-denominated financial statements 174,147,637.94 -9,240,108.61
6.2.7 Other 87,420.79 12,385.13
Attributable to non-controlling interests 42,574.21
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2022
7. Total comprehensive income 879,772,543.54 225,318,422.67
7.1 Attributable to owners of the Company as the parent 870,201,527.73 237,936,193.16
7.2 Attributable to non-controlling interests 9,571,015.81 -12,617,770.49
8. Earnings per share
8.1 Basic earnings per share 0.80 0.28
8.2 Diluted earnings per share 0.68 0.26
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Liu Zibin The Company’s chief accountant: Zhang Keming
The Company’s financial manager: Zhang Keming
3. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2022 Q1~Q3 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 4,948,795,995.75 3,442,267,636.72
Tax and levy rebates 139,638,698.35 67,120,825.12
Cash generated from other operating activities 39,167,849.67 57,187,354.22
Subtotal of cash generated from operating activities 5,127,602,543.77 3,566,575,816.06
Payments for commodities and services 2,961,997,864.79 2,044,777,843.69
Cash paid to and for employees 1,174,509,559.57 1,049,865,869.62
Taxes and levies paid 147,611,564.29 125,523,365.24
Cash used in other operating activities 114,394,732.80 101,740,045.00
Subtotal of cash used in operating activities 4,398,513,721.45 3,321,907,123.55
Net cash generated from/used in operating activities 729,088,822.32 244,668,692.51
2. Cash flows from investing activities:
Proceeds from disinvestment 73,323,521.50 1,250,970,000.00
Return on investment 30,382,568.02 49,155,061.86
Net proceeds from the disposal of fixed assets, intangible assets
and other long-lived assets 6,734,473.05 1,569,053.40
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 41,312,947.23 65,238,925.65
Subtotal of cash generated from investing activities 151,753,509.80 1,366,933,040.91
Payments for the acquisition of fixed assets, intangible assets and
other long-lived assets 249,612,464.61 360,680,597.37
Payments for investments 380,000,000.00 710,870,000.00
Cash used in other investing activities 172,976,756.21 2,385,258.55
Subtotal of cash used in investing activities 802,589,220.82 1,073,935,855.92
Net cash generated from/used in investing activities -650,835,711.02 292,997,184.99
3. Cash flows from financing activities:
Capital contributions received 19,086,927.80 80,383,350.00
Including: Capital contributions by non-controlling interests to
subsidiaries
Borrowings received 1,147,983,807.40 1,346,412,092.55
Cash generated from other financing activities
Subtotal of cash generated from financing activities 1,167,070,735.20 1,426,795,442.55
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2022
Repayment of borrowings 1,444,841,681.89 1,033,835,751.27
Interest and dividends paid 97,315,472.76 76,008,078.32
Including: Dividends paid by subsidiaries to non-controlling
interests
Cash used in other financing activities 66,765,540.66 13,762,509.00
Subtotal of cash used in financing activities 1,608,922,695.31 1,123,606,338.59
Net cash generated from/used in financing activities -441,851,960.11 303,189,103.96
4. Effect of foreign exchange rates changes on cash and cash
equivalents 83,690,400.22 12,905,967.35
5. Net increase in cash and cash equivalents -279,908,448.59 853,760,948.81
Add: Cash and cash equivalents, beginning of the period 1,970,006,884.89 1,396,530,407.47
6. Cash and cash equivalents, end of the period 1,690,098,436.30 2,250,291,356.28
(II) Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes No
These financial statements have not been audited by such an auditor.
Board of Director
Lu Thai Textile Co., Ltd.
29 October 2022
9
