Lu Thai Textile Co., Ltd. Third Quarterly Report 2023
Stock Code: 000726, 200726 Stock Name: LTTC, LTTC-B Announcement No. 2023-086
Bond Code: 127016 Bond Name: LTTC Convertible Bonds
LU THAI TEXTILE CO., LTD.
THIRD QUARTERLY REPORT 2023
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 2023 YoY change (%) Q1-Q3 2023 YoY change (%)
Operating revenue (RM B) 1,502,888,352.91 -19.89% 4,343,379,615.38 -16.58%
Net profit attributable to the listed company’s
shareholders (RM B) 113,464,972.86 -62.43% 335,112,971.01 -51.85%
Net profit attributable to the listed company’s
shareholders before exceptional gains and 110,981,395.05 -65.54% 302,791,256.99 -55.97%
losses (RM B)
Net cash generated from/used in operating
activities (RM B) — — 160,657,427.31 -77.96%
Basic earnings per share (RM B/share) 0.13 -62.86% 0.39 -51.25%
Diluted earnings per share (RM B/share) 0.13 -55.17% 0.36 -47.06%
Weighted average return on equity (%) 1.23% -2.25% 3.65% -4.60%
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2023
30 September 2023 31 December 2022 Change (%)
Total assets (RM B) 13,476,324,424.60 13,351,097,602.03 0.94%
Equity attributable to the listed company’s
shareholders (RM B) 9,273,864,621.65 9,014,156,872.71 2.88%
(II) Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RM B
Item Q3 2023 Q1-Q3 2023 Note
Gain or loss on disposal of non-current assets (inclusive of impairment
allowance write-offs) -4,612,199.80 -4,698,654.99
Government grants through profit or loss (exclusive of government grants
continuously given in the Company’s ordinary course of business at fixed 2,942,562.49 30,750,901.56
quotas or amounts as per the government’s 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 (exclusive of the effective 1,362,912.16 7,023,017.21
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 66,352.52 2,348,289.65
Non-operating income and expense other than the above 2,410,405.43 3,858,991.82
Less: Income tax effects 1,018,270.70 7,950,754.57
Non-controlling interests effects (net of tax) -1,331,815.71 -989,923.34
Total 2,483,577.81 32,321,714.02 --
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 Explanati on of why
Applicable □ Not applicable
Item YoY Change
Main reason for change
(%)
Q3 2023:
Net profit attributable to the listed company’s
-62.43
shareholders
Decreased sales volume of fabric
Net profit attributable to the listed company’s -65.54
shareholders before exceptional gains and losses
Basic earnings per share -62.86
Decreased net profit in Q3 2023
Diluted earnings per share -55.17
Q1-Q3 2023:
Net profit attributable to the listed company’s Decreased sales volume of fabric and increased cost of
-51.85
shareholders sales
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2023
Net profit attributable to the listed company’s -55.97
shareholders before exceptional gains and losses
Decreased proceeds from sale of commodities and
Net cash generated from/used in operating activities -77.96
rendering of services
Basic earnings per share -51.25
Decreased net profit in Q1-Q3 2023
Diluted earnings per share -47.06
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 preferred shareholders with resumed
Number of ordinary shareholders at the period-end 50,588 0
voting rights at the period-end (if any)
Top 10 shareholders
Shareh Shares in pledge, marked or frozen
Nature of
olding Total shares Restricted
Name of shareholder sharehold
percent held shares held Status Shares
er age
Domestic
non-state-
Zibo Lucheng Textile Investment Co.,
owned 16.25% 140,353,583 0
Ltd.
corporatio
n
Foreign
Tailun (Thailand) Textile Co., Ltd. corporatio 13.69% 118,232,400 0
n
State-
Central Huijin Assets M anagement Co., owned
Ltd. corporatio 2.30% 19,884,100 0
n
National Social Security Fund Portfolio
Other 1.64% 14,190,051 0
413
ICBC Credit Suisse Innovation Power
Other 1.38% 11,910,000 0
Stock Type Securities Investment Fund
ICBC Credit Suisse Selected Balanced
Other 0.84% 7,230,000 0
M ixed Securities Investment Fund
FEDERATED HERM ES GLOBAL
INVESTM ENT FD (CAYM AN) Foreign
MASTER, SPC OBOAFTAO legal 0.72% 6,200,183 0
FEDERATED HERM ES EM G ASIA person
EQUITY FD M ASTER S.P.
Dacheng China Securities Asset
Other 0.60% 5,144,200 0
M anagement Plan
Dongfanghong Dingyuan 3-M onth Fixed
Term Open M ixed Initiating Securities Other 0.57% 4,900,100 0
Investment Fund
GF China Securities Asset M anagement
Other 0.56% 4,833,300 0
Plan
Top 10 unrestricted shareholders
Shares by type and number
Name of shareholder Unrestricted shares held
Type Shares
RM B-
Zibo Lucheng Textile Investment Co., Ltd. 140,353,583 denominated 140,353,583
ordinary stock
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2023
Domestically
Tailun (Thailand) Textile Co., Ltd. 118,232,400 listed foreign 118,232,400
stock
RM B-
Central Huijin Assets M anagement Co., Ltd. 19,884,100 denominated 19,884,100
ordinary stock
RM B-
National Social Security Fund Portfolio 413 14,190,051 denominated 14,190,051
ordinary stock
RM B-
ICBC Credit Suisse Innovation Power Stock Type
11,910,000 denominated 11,910,000
Securities Investment Fund ordinary stock
RM B-
ICBC Credit Suisse Selected Balanced M ixed Securities
7,230,000 denominated 7,230,000
Investment Fund ordinary stock
FEDERATED HERM ES GLOBAL INVESTM ENT FD
Domestically
(CAYM AN) M ASTER, SPC OBOAFTAO
6,200,183 listed foreign 6,200,183
FEDERATED HERM ES EM G ASIA EQUITY FD stock
M ASTER S.P.
RM B-
Dacheng China Securities Asset M anagement Plan 5,144,200 denominated 5,144,200
ordinary stock
RM B-
Dongfanghong Dingyuan 3-M onth Fixed Term Open
4,900,100 denominated 4,900,100
M ixed Initiating Securities Investment Fund ordinary stock
RM B-
GF China Securities Asset M anagement Plan 4,833,300 denominated 4,833,300
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 well as sponsor of foreign capital of the
Related or acting-in-concert parties among the shareholders above
Company. All of other 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 any) Naught
(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 First Extraordinary General M eeting of 2023 on 6 July 2023, 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 7 July 2023. On 21 August 2023, the Company carried out the first repurchase. As of 30 September
2023, the Company had repurchased a total of 20,883,507 B-shares (or 2.42% of the Company’s total share capital) by way of
centralized bidding. With the highest repurchase price being HKD4.73/share and the lowest being HKD4.53/share, the total payment
for this repurchase plan was HKD98,007,260.39 (inclusive of commissions and alike).
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2023
IV Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Lu Thai Textile Co., Ltd.
30 September 2023
Unit: RM B
Item 30 September 2023 1 January 2023
Current assets:
M onetary assets 1,123,765,183.60 2,067,768,253.97
Held-for-trading financial assets 963,968,116.16 267,695,159.48
Derivative financial assets
Notes receivable 245,128,865.70 168,755,715.84
Accounts receivable 569,549,816.69 660,427,526.19
Receivables financing 17,060,057.34 11,208,304.78
Prepayments 107,659,937.81 95,021,598.32
Other receivables 31,991,728.90 89,855,659.99
Including: Interest receivable
Dividends receivable 18,563,298.39
Inventories 2,320,596,612.35 2,107,849,708.33
Other current assets 118,480,837.77 76,847,903.07
Total current assets 5,498,201,156.32 5,545,429,829.97
Non-current assets:
Long-term equity investments 189,776,161.84 184,168,625.69
Investments in other equity
instruments
Other non-current financial assets 89,080,000.00 337,110,000.00
Investment property 19,803,836.54 20,460,935.21
Fixed assets 5,601,352,580.33 5,807,847,850.67
Construction in progress 945,643,094.37 199,943,501.73
Right-of-use assets 479,479,004.42 481,420,505.31
Intangible assets 345,389,461.66 352,889,578.06
Development costs
Goodwill 20,563,803.29 20,563,803.29
Long-term prepaid expense 2,978,651.12 2,948,981.97
Deferred income tax assets 143,640,247.16 155,774,523.25
Other non-current assets 140,416,427.55 242,539,466.88
Total non-current assets 7,978,123,268.28 7,805,667,772.06
Total assets 13,476,324,424.60 13,351,097,602.03
Current liabilities:
Short-term borrowings 579,930,446.20 518,946,415.96
Held-for-trading financial liabilities 35,492,510.01 4,276,929.70
Derivative financial liabilities
Notes payable 55,450,000.00
Accounts payable 220,408,264.53 246,588,463.74
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2023
Advances from customers
Contract liabilities 178,207,218.40 206,879,672.53
Employee benefits payable 285,580,466.87 330,027,159.72
Taxes and levies payable 31,675,948.96 31,483,442.06
Other payables 50,352,521.20 83,357,296.71
Including: Interest payable
Dividends payable 441,113.64 441,113.64
Current portion of non-current
liabilities 196,288,854.12 307,921,837.35
Other current liabilities 65,175,380.22 66,889,025.17
Total current liabilities 1,643,111,610.51 1,851,820,242.94
Non-current liabilities:
Long-term borrowings 261,710,274.16 186,431,096.24
Bonds payable 1,463,278,946.78 1,438,162,231.27
Lease liabilities 90,863,511.11 98,501,303.83
Long-term payables
Long-term employee benefits payable 57,417,997.65 57,417,997.65
Provisions
Deferred income 152,025,077.46 159,615,037.36
Deferred income tax liabilities 154,682,285.28 151,243,432.80
Other non-current liabilities
Total non-current liabilities 2,179,978,092.44 2,091,371,099.15
Total liabilities 3,823,089,702.95 3,943,191,342.09
Owners’ equity:
Share capital 863,607,634.00 887,633,151.00
Other equity instruments 71,383,728.77 71,383,830.75
Capital reserves 333,751,501.28 395,872,135.71
Less: Treasury stock 118,417,533.20 154,396,198.73
Other comprehensive income 167,636,242.15 107,628,898.09
Specific reserve 1,115,773.65
Surplus reserves 1,215,124,336.54 1,215,124,336.54
General reserve
Retained earnings 6,739,662,938.46 6,490,910,719.35
Total equity attributable to owners of the
Company as the parent 9,273,864,621.65 9,014,156,872.71
Non-controlling interests 379,370,100.00 393,749,387.23
Total owners’ equity 9,653,234,721.65 9,407,906,259.94
Total liabilities and owners’ equity 13,476,324,424.60 13,351,097,602.03
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: RM B
Item Q1~Q3 2023 Q1~Q3 2022
1. Revenues 4,343,379,615.38 5,206,422,889.50
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2023
Including: Operating revenue 4,343,379,615.38 5,206,422,889.50
2. Costs and expenses 3,961,187,521.18 4,261,512,476.47
Including: Cost of sales 3,367,798,201.96 3,850,817,744.47
Taxes and levies 51,710,880.20 55,064,913.87
Selling expense 99,779,947.00 91,979,470.34
Administrative expense 282,144,753.70 281,331,829.22
Development costs 189,722,944.72 185,127,476.13
Finance costs -29,969,206.40 -202,808,957.56
Including: Interest expense 62,229,138.75 68,286,145.08
Interest income 38,423,491.50 37,133,045.19
Add: Other income 30,625,776.56 42,259,767.72
Return on investment (“-” for loss) 55,261,510.68 -7,289,966.58
Including: Share of profit or loss of joint ventures and
associates 5,607,536.15 -9,771,373.43
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) -42,630,957.32 -37,118,426.22
Credit impairment loss (“-” for loss) 9,173,784.96 -7,461,737.20
Asset impairment loss (“-” for loss) -73,776,454.27 -148,491,843.12
Asset disposal income (“-” for loss) -4,600,817.87 1,214,440.32
3. Operating profit (“-” for loss) 356,244,936.94 788,022,647.95
Add: Non-operating income 6,999,573.15 5,681,260.63
Less: Non-operating expense 3,238,418.45 3,045,887.88
4. Gross profit (“-” for loss) 360,006,091.64 790,658,020.70
Less: Income tax expense 39,272,407.86 85,120,535.89
5. Net profit (“-” for net loss) 320,733,683.78 705,537,484.81
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 320,733,683.78 705,537,484.81
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) 335,112,971.01 695,966,469.00
5.2.1 Net profit attributable to non-controlling interests (“-” for
net loss) -14,379,287.23 9,571,015.81
6. Other comprehensive income, net of tax 60,007,344.06 174,235,058.73
Attributable to owners of the Company as the parent 60,007,344.06 174,235,058.73
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 60,007,344.06 174,235,058.73
6.2.1 Other comprehensive income that will be reclassified to
profit or loss under the equity method
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2023
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 60,321,769.50 174,147,637.94
6.2.7 Other -314,425.44 87,420.79
Attributable to non-controlling interests
7. Total comprehensive income 380,741,027.84 879,772,543.54
7.1 Attributable to owners of the Company as the parent 395,120,315.07 870,201,527.73
7.2 Attributable to non-controlling interests -14,379,287.23 9,571,015.81
8. Earnings per share
8.1 Basic earnings per share 0.39 0.80
8.2 Diluted earnings per share 0.36 0.68
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RM B0.00, with the amount for the same period of last year being RM B0.00.
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: RM B
Item Q1~Q3 2023 Q1~Q3 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 4,082,732,904.05 4,948,795,995.75
Tax and levy rebates 111,908,970.46 139,638,698.35
Cash generated from other operating activities 88,268,626.57 39,167,849.67
Subtotal of cash generated from operating activities 4,282,910,501.08 5,127,602,543.77
Payments for commodities and services 2,671,747,269.74 2,961,997,864.79
Cash paid to and for employees 1,220,030,753.31 1,174,509,559.57
Taxes and levies paid 98,333,908.79 147,611,564.29
Cash used in other operating activities 132,141,141.93 114,394,732.80
Subtotal of cash used in operating activities 4,122,253,073.77 4,398,513,721.45
Net cash generated from/used in operating activities 160,657,427.31 729,088,822.32
2. Cash flows from investing activities:
Proceeds from disinvestment 2,435,012,962.14 73,323,521.50
Return on investment 28,169,612.15 30,382,568.02
Net proceeds from the disposal of fixed assets, intangible assets and
other long-lived assets 5,799,244.29 6,734,473.05
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 85,031,721.32 41,312,947.23
Subtotal of cash generated from investing activities 2,554,013,539.90 151,753,509.80
Payments for the acquisition of fixed assets, intangible assets and
other long-lived assets 544,637,761.00 249,612,464.61
Payments for investments 2,947,560,711.64 380,000,000.00
Cash used in other investing activities 18,025,985.58 172,976,756.21
Subtotal of cash used in investing activities 3,510,224,458.22 802,589,220.82
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Lu Thai Textile Co., Ltd. Third Quarterly Report 2023
Net cash generated from/used in investing activities -956,210,918.32 -650,835,711.02
3. Cash flows from financing activities:
Capital contributions received 19,086,927.80
Including: Capital contributions by non-controlling interests to
subsidiaries
Borrowings received 998,315,156.40 1,147,983,807.40
Cash generated from other financing activities
Subtotal of cash generated from financing activities 998,315,156.40 1,167,070,735.20
Repayment of borrowings 955,264,496.55 1,444,841,681.89
Interest and dividends paid 107,775,332.89 97,315,472.76
Including: Dividends paid by subsidiaries to non-controlling
interests
Cash used in other financing activities 111,329,581.84 66,765,540.66
Subtotal of cash used in financing activities 1,174,369,411.28 1,608,922,695.31
Net cash generated from/used in financing activities -176,054,254.88 -441,851,960.11
4. Effect of foreign exchange rates changes on cash and cash
equivalents 11,527,014.35 83,690,400.22
5. Net increase in cash and cash equivalents -960,080,731.54 -279,908,448.59
Add: Cash and cash equivalents, beginning of the period 1,822,897,270.16 1,970,006,884.89
6. Cash and cash equivalents, end of the period 862,816,538.62 1,690,098,436.30
(II) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of
the New Accounting Standards Implemented since 2023
□ Applicable Not applicable
(III) 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.
28 October 2023
9
