LU THAI TEXTILE CO., LTD.FIRST QUARTERLY REPORT 2021
April 2021
Part I Important NotesThe Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of Lu Thai Textile Co., Ltd. (hereinafter referred to as the“Company”) hereby guarantee the factuality, accuracy and completeness of the contents ofthis Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Liu Zibin, the Company’s legal representative, Zhang Hongmei, the Company’s ChiefAccountant, and Zhang Keming, the Company’s Financial Manager hereby guarantee thatthe Financial Statements carried in this Report are factual, accurate and complete.This Report and its summary have been prepared in both Chinese and English. Should therebe any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.
Part II Key Corporate InformationI Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| Q1 2021 | Q1 2020 | Change (%) | |
| Operating revenue (RMB) | 993,485,161.79 | 1,252,428,965.20 | -20.68% |
| Net profit attributable to the listed company’s shareholders (RMB) | 74,530,850.40 | 103,518,808.50 | -28.00% |
| Net profit attributable to the listed company’s shareholders before exceptional items (RMB) | 15,513,465.07 | 103,615,262.08 | -85.03% |
| Net cash generated from/used in operating activities (RMB) | -36,745,428.28 | 145,916,523.77 | -125.18% |
| Basic earnings per share (RMB/share) | 0.09 | 0.12 | -25.00% |
| Diluted earnings per share (RMB/share) | 0.09 | 0.12 | -25.00% |
| Weighted average return on equity (%) | 0.96% | 1.33% | -0.37% |
| 31 March 2021 | 31 December 2020 | Change (%) | |
| Total assets (RMB) | 12,197,752,223.47 | 12,129,903,960.65 | 0.56% |
| Equity attributable to the listed company’s shareholders (RMB) | 7,774,522,551.24 | 7,687,577,590.72 | 1.13% |
Exceptional gains and losses
√ Applicable □ Not applicable
Unit: RMB
| Item | Q1 2021 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 59,394,526.45 | |
| Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s uniform standards) | 12,470,516.19 | |
| Gain or loss on fair-value changes in held-for-trading financial assets and liabilities, as well as derivative financial assets and liabilities & income from disposal of held-for-trading financial assets and liabilities, derivative financial assets and liabilities, as well as investments in other debt obligations (exclusive of effective portion of hedges that arise in the Company’s ordinary course of business) | -591,341.11 | |
| Non-operating income and expense other than the above | -1,879,517.36 | |
| Less: Income tax effects | 10,098,853.35 | |
| Non-controlling interests effects (net of tax) | 277,945.49 | |
| Total | 59,017,385.33 | -- |
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/LossItems:
□ Applicable √ Not applicable
No such cases for the Reporting Period.II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2021
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders at the period-end | 57,260 | Number of preferred shareholders with resumed voting rights at the period-end (if any) | 0 | ||||||
| Top 10 shareholders | |||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Restricted shares held | Shares in pledge or frozen | ||||
| Status | Shares | ||||||||
| Zibo Lucheng Textile Investment Co., Ltd. | Domestic non-state-owned legal person | 16.36% | 140,353,583 | 0 | |||||
| Tailun (Thailand) Textile Co., Ltd. | Foreign legal person | 13.78% | 118,232,400 | 118,232,400 | |||||
| Central Huijin Assets Management Co., Ltd. | State-owned legal person | 2.37% | 20,315,300 | ||||||
| ICBC Credit Suisse Double Interest Bond Securities Investment Fund | Domestic non-state-owned legal person | 1.28% | 10,999,958 | ||||||
| National Social Security Fund Portfolio 413 | Domestic non-state-owned legal person | 1.10% | 9,480,051 | ||||||
| Dajia Life Insurance Co. Ltd.-Universal Products | Other | 0.86% | 7,348,835 | ||||||
| Zhong Ou China Securities Asset Management Plan | Other | 0.61% | 5,235,900 | ||||||
| Dacheng China Securities Asset Management Plan | Other | 0.61% | 5,235,900 | ||||||
| Harvest China Securities Asset Management Plan | Other | 0.61% | 5,235,900 | ||||||
| GF China Securities Asset Management Plan | Other | 0.61% | 5,235,900 | ||||||
| Top 10 unrestricted shareholders | |||
| Name of shareholder | Unrestricted shares held | Shares by type | |
| Type | Shares | ||
| Zibo Lucheng Textile Investment Co., Ltd. | 140,353,583 | RMB-denominated ordinary stock | |
| Central Huijin Assets Management Co., Ltd. | 20,315,300 | RMB-denominated ordinary stock | |
| ICBC Credit Suisse Double Interest Bond Securities Investment Fund | 10,999,958 | RMB-denominated ordinary stock | |
| National Social Security Fund Portfolio 413 | 9,480,051 | RMB-denominated ordinary stock | |
| Dajia Life Insurance Co. Ltd.-Universal Products | 7,348,835 | RMB-denominated ordinary stock | |
| Zhong Ou China Securities Asset Management Plan | 5,235,900 | RMB-denominated ordinary stock | |
| Dacheng China Securities Asset Management Plan | 5,235,900 | RMB-denominated ordinary stock | |
| Harvest China Securities Asset Management Plan | 5,235,900 | RMB-denominated ordinary stock | |
| GF China Securities Asset Management Plan | 5,235,900 | RMB-denominated ordinary stock | |
| China China Securities Asset Management Plan | 5,235,900 | RMB-denominated ordinary stock | |
| Related or acting-in-concert parties among the shareholders above | 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 Company. All of other shareholders are people holding public A share and the Company is not able to confirm whether there is associated relationship or concerted action among other shareholders. | ||
| Top 10 shareholders involved in securities margin trading (if any) | Naught | ||
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of theCompany conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
Part III Significant EventsI Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
| Item | 31 March 2021 | 31 December 2020 | Change | Reason for change |
| Prepayments | 76,377,931.28 | 19,611,775.28 | 289.45% | Increase in prepayments for cotton |
| Right-of-use assets | 49,059,102.53 | - | 100.00% | Recognition of right-of-use assets according to the new accounting standard governing leases adopted in the current period |
| Other non-current assets | 164,333,330.32 | 95,434,040.18 | 72.20% | Increase in prepayments for land |
| Other current liabilities | 68,221,106.95 | 192,574,674.68 | -64.57% | Recognition in the current period of income from the relocation compensation received in the last period |
| Item | Q1 2021 | Q1 2020 | Change | Reason for change |
| Selling expense | 22,876,675.00 | 43,045,212.94 | -46.85% | Reclassification of transportation expense and port expense from selling expense to costs of sales |
| Finance costs | 2,268,306.63 | 14,743,890.27 | -84.62% | Decrease in interest expense and increase in interest income |
| Return on investment (“-” for loss) | 7,111,896.31 | 104,051,767.00 | -93.17% | Transfer of held-for-trading financial assets in the same period of last year |
| Gain on changes in fair value (“-” for loss) | -10,376,010.56 | -99,714,752.69 | 89.59% | Reversal of recognized gains on changes in the fair value of held-for-trading financial assets in the same period of last year |
| Credit impairment loss (“-” for loss) | 14,759,025.50 | 1,490,082.33 | 890.48% | Decrease in the balance of accounts receivable |
| Asset impairment loss (“-” for loss) | -6,272,617.88 | -2,090,161.60 | -200.10% | Increase in inventory impairment loss |
| Asset disposal income (“-” for loss) | 59,394,526.45 | -37,045.69 | 160427.76% | Recognition of relocation compensation |
| Non-operating expenses | 2,288,330.70 | 1,540,546.20 | 48.54% | Increase in donation expenditures |
| Net cash generated from/used in operating activities | -36,745,428.28 | 145,916,523.77 | -125.18% | Decrease in cash received from selling goods and rendering of services |
| Net cash generated from/used in investing activities | 16,210,324.93 | -65,312,638.47 | 124.82% | Increase in cash received from disinvestments |
| Net cash generated from/used in financing activities | 172,987,678.81 | -17,426,491.61 | 1092.67% | Increase in short- and long-term borrowings |
| Net increase in cash and cash equivalents | 159,279,909.02 | 61,713,008.55 | 158.10% | Increase in net cash generated from financing activities |
II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
1. On 9 April 2020, the Company issued 14 million A-share convertible corporate bonds (Luthai Convertible Bondfor short; Code: 127016) on the Shenzhen Stock Exchange, which were traded at the price of RMB100 and theconversion price of RMB9.01 per share. The bonds were listed on SZSE on 13 May 2020. Due to the interestdistribution for the year 2019 on 9 July 2020, the conversion price of Luthai Convertible Bond was adjusted fromRMB9.01 per share to RMB8.91 per share. The conversion period of Luthai Convertible Bond started from 15October 2020. From 1 January 2021 to the end of the first quarter in 2021, Luthai Convertible Bond saw a drop ofRMB14,700.00 in value and a decrease of 147 in number, which were converted to 1,646 shares. By the end of thefirst quarter in 2021, the remaining value of the convertible bond reached RMB1,399,889,100.00 and the remainingnumber was 13,998,891.
2. On 12 April 2021, the Company held the 22
nd Meeting of the 9
th Board of Directors and the 13
th Meeting of the 9
th
Supervisory Committee. The Restricted Stock Incentive Scheme (Draft) and Summary for 2021 and theManagement Measures of Luthai Textile Co., Ltd. for the Enforcement and Assessment of the Restricted StockIncentive Scheme for 2021 were reviewed and passed at those meetings and will be submitted to the 1
st
Extraordinary General Meeting of 2021 for deliberation.
| Overview of significant events | Disclosure date | Announcement index |
| Conversion of convertible bonds into equity in Q1 2021 | 2 April 2021 | Refer to Announcement of Lu Thai Textile Co., Ltd. on Conversion of Convertible Bonds into Equity in Q1 2021 disclosed on 2 April 2021 on www.cninfo.com.cn for details. |
| Restricted Stock Incentive Scheme for 2021 put forward by the Company | 13 April 2021 | Refer to the Restricted Stock Incentive Scheme (Draft) and Summary for 2021 of Lu Thai Textile Co., Ltd. and relevant announcements disclosed on 13 April 2021 on www.cninfo.com.cn for details. |
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during theReporting Period
√ Applicable □ Not applicable
| Commitment | Promisor | Type of commitment | Details of commitment | Date of commitment making | Term of commitment | Fulfillment |
| Commitments made in share reform | ||||||
| Commitments made in acquisition documents or shareholding alteration documents | ||||||
| Commitments made in time of asset restructuring | ||||||
| Commitments made in IPO or refinancing | Controlling shareholder, actual controller | Dilution of immediate return of public issuance of A-share convertible corporate bonds | 1. It’s not allowed to interfere the operation and management activities of the Company excessively, and to encroach the interest of the Company. 2. From the issuance date of this commitment to the completion of the implementation of the Company's public offering of A-share convertible corporate bonds, if the CSRC makes other new regulatory provisions on remedial measures for returns and the commitment, and the above commitment fails to meet the requirements of the CSRC, the company/I promise to issue supplementary commitment then in accordance with the latest regulations of CSRC. 3. Commitment is made to fulfill the Company's relevant remedial measures for returns and any commitment made herein by the company/me. If the company/I violate(s) such commitment and cause(s) losses to the Company or investors, the company / I will bear the compensation responsibility to the Company or investors in accordance with the law. | 23 May 2019 | 23 May 2019 to 8 April 2026 | Ongoing |
| The directors and senior manager of the Company | Dilution of immediate return of public issuance of A-share convertible corporate bonds | 1. Commitment is made not to transfer benefits to other units or individuals free of charge or under unfair conditions, and no other ways damaging the interests of the Company will be taken. 2. I will strictly abide by the budget management of the Company, and accept the strict supervision and management of the Company to avoid waste or excessive consumption. Any position-related consumption behaviors of myself will occur within the scope necessary for the performance of my duties. 3. Commitment is made not to use the Company's assets to engage in investment and consumption activities unrelated to the performance of duties. 4. Commitment is made that the remuneration system developed by the Board of Directors or the Remuneration Committee is linked to the implementation of the Company's remedial measures for returns. 5. Commitment is made that the conditions for exercising the Equity Incentive Plan to be issued in the future will be linked to the implementation of the Company's remedial measures for returns. 6. From the issuance date of this commitment to the completion of the implementation of the Company's public offering of A-share convertible corporate bonds, if the CSRC makes other new regulatory provisions on remedial measures for returns and the commitment, and the above commitment fails to meet the requirements of the CSRC, I promise to issue supplementary | 23 May 2019 | 23 May 2019 to 8 April 2026 | Ongoing |
| commitment then in accordance with the latest regulations of CSRC. 7. Commitment is made to fulfill the Company's relevant remedial measures for returns and any commitment made herein by me. If I violate such commitment and causes losses to the Company or investors, I will bear the compensation responsibility to the Company or investors in accordance with the law. | ||||||
| Commitments made in stock option incentive | ||||||
| Other commitments made to minority shareholders | ||||||
| Fulfill on time or not | Yes | |||||
IV Financial Investments
1. Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
| Operator | Relationship with the Company | Related-party transaction | Type of derivative | Initial investment amount | Starting date | Ending date | Beginning investment amount | Purchased in the Reporting Period | Sold in the Reporting Period | Impairment provision (if any) | Ending investment amount | Proportion of ending investment amount in the Company’s ending net assets | Actual gain/loss in the Reporting Period |
| Comme | Non-rel | No | Forward | 166,697 | 26 | 31 | 129,805 | 36,891. | 18,053. | 148,644 | 12.18% | 471.6 |
| rcial bank | ated | exchange settlement | .7 | November 2020 | December 2021 | .79 | 91 | 28 | .42 | ||||
| Commercial bank | Non-related | No | Foreign exchange option | 118,238.46 | 22 October 2020 | 27 January 2022 | 62,150 | 56,088.46 | 9,814.2 | 108,424.26 | 8.89% | 3 | |
| Commercial bank | Non-related | No | Forward exchange transactions | 13,081.6 | 14 January 2021 | 1 April 2021 | 0 | 13,081.6 | 6,540.8 | 6,540.8 | 0.54% | 14.91 | |
| Total | 298,017.76 | -- | -- | 191,955.79 | 106,061.97 | 34,408.28 | 263,609.48 | 21.61% | 489.51 | ||||
| Funding source | Self-funded | ||||||||||||
| Legal matters involved (if applicable) | N/A | ||||||||||||
| Disclosure date of board of directors announcement on approval of derivative investment (if any) | 30 April 2020 | ||||||||||||
| Disclosure date of general meeting of shareholders announcement on approval of derivative investment (if any) | |||||||||||||
| Analysis of risks and control measures associated with derivative investments held in Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | The Company conducted derivatives products transaction in order for hedging. And the forward settlement hedging was operated by installments, with the relevant amount not more than the planned derivatives products transactions. And all derivatives products transaction was zero-deposit. The Company had a complete risk control system for sufficient analysis and prevention of possible risks such as market risk, liquidity risk and credit risk, operation risk and risk of laws and regulation. 1. Market risk: when the international and domestic economic situations change, the corresponding changes in exchange rates and interest rates may have an adverse impact on the financial derivatives transactions of the Company. Precautionary measures to be taken include: the Company chooses risk-controlled financial derivative tools with simple structure 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 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 derivatives had high specialty and complexity, so imperfect internal operation procedures, staffs and external events would make the Company to undertake risks during the transaction. Risk control measures: The Company promulgated strict authorization and approval system and perfect regulatory mechanism, fixed the operation procedures and approval procedures system to conduct derivative products transaction, 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 so as to ensure to lower the operation risks to the maximum. 4. Risk of laws and regulation: The Company conducted derivatives products transaction in strict accordance with relevant laws and rules, otherwise 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 and policies relevant to derivative products transaction business, tracked closely the relevant changes; the Company carried out financial derivative instruments transactions with financial institutions with the legal qualifications, tremendous strength and good reputation; and strengthened the compliant examination on derivative products transaction business to avoid possible law risks. The Company conducted derivative transaction business according to the relevant approval procedure, which was in line with relevant laws, regulations, the Company’s Articles of Association, the Management Rules for Securities Investment and Derivative Transaction of Lu Thai Textile Co., Ltd., and the Proposal on the Plan of Lu Thai Textile Co., Ltd. for Derivative Transactions approved at the 13th Meeting of the 9th Board of Directors on 28 April 2020, and performed relevant information disclosure responsibilities. | |
| Changes in market prices or fair value of derivative investments in Reporting Period (fair value analysis should include measurement method and related assumptions and parameters) | 1. By 31 March 2021, the Company held 66 financial derivatives contracts that were not expired, valued at USD409.5 million. Among them, there were 37 forward settlements worth USD223 million, 28 foreign exchange option portfolios worth USD176.50 million and 1 forward foreign exchange trading worth USD10 million. 2. In the first quarter of 2021, a total of USD70 million financial derivatives matured, and USD52 million were delivered with earnings of RMB4,895,100. USD18 million were extended. Among them, forward settlements worth USD45 million matured, and USD27 million were delivered with earnings of RMB4,716,000. USD18 million were extended; all of the USD15 million matured foreign exchange option portfolios were delivered with earnings of RMB30,000; all of the forward foreign exchange trading worth USD10 million matured and were delivered, with earnings of RMB149,100. |
| Major changes in accounting policies and specific accounting principles adopted for derivative investments in | No significant changes |
| Reporting Period compared to last reporting period | |
| Opinion of independent directors on derivative investments and risk control | The Company’s independent directors Zhou Zhiji, Pan Ailing, Wang Xinyu and Qu Dongmei, concerning conducting derivatives business, have issued the following professional advice: During the Reporting Period, the Company conducted derivatives trading based on relevant laws and regulations, the Articles of Association, the Management Rules for Securities Investment and Derivative Transaction of Lu Thai Textile Co., Ltd. The trading conformed to the Plan for Derivative Transactions approved by the Board of Directors, and the operations were legitimate and compliant. While the normal trading and operations are guaranteed, the Company's derivatives trading funded with own funds helps to avoid risks of renminbi exchange rate, improve the ability to hedge against exchange rate volatility and will not damage the interests of the Company and all shareholders. |
V Progress of Projects Financed with Raised Funds
□ Applicable √ Not applicable
VI Operating Performance Forecast for January-June 2021Warning of a forecast loss on or a forecast significant year-on-year change in the accumulative net profit from the beginning of theyear to the end of the next reporting period, as well as explanation of why:
□ Applicable √ Not applicable
VII Significant Contracts Arising from the Company’s Ordinary Course of Business
□ Applicable √ Not applicable
VIII Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Unit: RMB’0,000
| Type | Funding source | Amount | Undue amount | Unrecovered overdue amount |
| Bank’s wealth management product | Idle raised funds | 60,254 | 27,500 | 0 |
| Bank’s wealth management product | Idle self-funded | 52,143 | 17,697 | 0 |
| Total | 112,397 | 45,197 | 0 | |
High-risk wealth management transactions with a significant single amount, or with low security, low liquidity or no principalprotection:
√ Applicable □ Not applicable
RMB’0,000
| Name of the trustee | Type of the trustee | Type of the product | Amount | Resource of funds | Initial date | Ended Date | Use of fund | Method of payment determination | Annual yield for reference | Estimate profit (if any) | Amount of actual profits or losses in Reporting Period | Actual recovery of profits or losses in Reporting Period | Amount withdrawn impairment provision (if any) | Whether go through stator procedures | Whether there is wealth management entrustment plan in future or not | Overview of the item and the related index for inquiring (if any) |
| Agricultural Bank of China | Bank | Principal-protected | 10,000 | Raised funds | 1 July 2020 | 8 January 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.50% | 182.19 | 182.19 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-051) disclosed on Cninfo on 23 May 2020 |
| Qishang Bank | Bank | Principal-protected | 2,754 | Raised funds | 10 December 2020 | 11 March 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.50% | 24.03 | 24.03 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-051) disclosed on Cninfo on 23 May 2020 |
| Qishang Bank | Bank | Principal-protected | 5,000 | Raised funds | 10 December 2020 | 11 March 2021 | Bank financial products | One-off repayment of principal and | 3.50% | 43.63 | 43.63 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-051) disclosed on |
| interests at maturity | Cninfo on 23 May 2020 | |||||||||||||||
| Agricultural Bank of China | Bank | Principal-protected | 10,000 | Raised funds | 31 December 2020 | 25 March 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.15% | 72.49 | 72.49 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-051) disclosed on Cninfo on 23 May 2020 |
| Agricultural Bank of China | Bank | Principal-protected | 10,000 | Raised funds | 22 January 2021 | 16 April 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.30% | 75.95 | 0 | - | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-051) disclosed on Cninfo on 23 May 2020 |
| Agricultural Bank of China | Bank | Principal-protected | 10,000 | Raised funds | 30 March 2021 | 25 June 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.70% | 88.19 | 0 | - | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-051) disclosed on Cninfo on 23 May 2020 |
| Agricultural Bank of China | Bank | Principal-protecte | 5,000 | Raised funds | 30 March 2021 | 25 June 2021 | Bank financial products | One-off repayment of principal | 3.70% | 44.1 | 0 | - | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-051) |
| d | and interests at maturity | disclosed on Cninfo on 23 May 2020 | ||||||||||||||
| Qishang Bank | Bank | Principal-protected | 2,500 | Raised funds | 19 March 2021 | 22 June 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.70% | 24.08 | 0 | - | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-051) disclosed on Cninfo on 23 May 2020 |
| Qishang Bank | Bank | Principal-protected | 5,000 | Raised funds | 16 October 2020 | 14 January 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.50% | 43.15 | 43.15 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-051) disclosed on Cninfo on 23 May 2020 |
| Qishang Bank | Bank | Principal-protected | 3,000 | Self-owned funds | 16 October 2020 | 14 January 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.50% | 25.89 | 25.89 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-059) disclosed on Cninfo on 14 August 2020 |
| Qishang Bank | Bank | Principal-protecte | 5,000 | Self-owned funds | 4 November 2020 | 2 February 2021 | Bank financial products | One-off repayment of principal | 3.50% | 43.15 | 43.15 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-059) |
| d | and interests at maturity | disclosed on Cninfo on 14 August 2020 | ||||||||||||||
| Qishang Bank | Bank | Principal-protected | 5,000 | Self-owned funds | 11 November 2020 | 9 February 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.50% | 43.15 | 43.15 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-059) disclosed on Cninfo on 14 August 2020 |
| Qishang Bank | Bank | Principal-protected | 6,246 | Self-owned funds | 10 December 2020 | 11 March 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.50% | 54.5 | 54.5 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-059) disclosed on Cninfo on 14 August 2020 |
| Qishang Bank | Bank | Principal-protected | 3,000 | Self-owned funds | 10 December 2020 | 20 January 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.40% | 11.18 | 11.18 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-059) disclosed on Cninfo on 14 August 2020 |
| China Everbright Bank | Bank | Principal-protecte | 5,000 | Self-owned funds | 18 December 2020 | 18 January 2021 | Bank financial products | One-off repayment of principal | 2.70% | 11.25 | 11.25 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-059) |
| d | and interests at maturity | disclosed on Cninfo on 14 August 2020 | ||||||||||||||
| Qishang Bank | Bank | Principal-protected | 3,697 | Self-owned funds | 9 February 2021 | 18 May 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.50% | 34.74 | 0 | - | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-059) disclosed on Cninfo on 14 August 2020 |
| Qishang Bank | Bank | Principal-protected | 7,000 | Self-owned funds | 24 February 2021 | 29 June 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.60% | 86.3 | 0 | - | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-059) disclosed on Cninfo on 14 August 2020 |
| Qishang Bank | Bank | Principal-protected | 5,000 | Self-owned funds | 19 March 2021 | 22 June 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.70% | 48.15 | 0 | - | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-059) disclosed on Cninfo on 14 August 2020 |
| Qishang Bank | Bank | Principal-protecte | 2,600 | Self-owned funds | 7 January 2021 | 19 February 2021 | Bank financial products | One-off repayment of principal | 3.40% | 10.41 | 10.41 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-059) |
| d | and interests at maturity | disclosed on Cninfo on 14 August 2020 | ||||||||||||||
| Qishang Bank | Bank | Principal-protected | 2,000 | Self-owned funds | 27 January 2021 | 3 March 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.40% | 6.52 | 6.52 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-059) disclosed on Cninfo on 14 August 2020 |
| Qishang Bank | Bank | Principal-protected | 2,600 | Self-owned funds | 24 February 2021 | 31 March 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.50% | 8.73 | 8.73 | Recovery on schedule | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-059) disclosed on Cninfo on 14 August 2020 |
| Qishang Bank | Bank | Principal-protected | 2,000 | Self-owned funds | 11 March 2021 | 15 June 2021 | Bank financial products | One-off repayment of principal and interests at maturity | 3.60% | 18.94 | 0 | - | 0 | Yes | Not yet | Refer to the related announcement (No.: 2020-059) disclosed on Cninfo on 14 August 2020 |
| Total | 112,397 | -- | -- | -- | -- | -- | -- | 1,000.72 | 580.27 | -- | 0 | -- | -- | -- | ||
Wealth management transactions with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
IX Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its RelatedParties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.XI Communications with the Investment Community such as Researches, Inquiries andInterviews Received during the Reporting Period
√ Applicable □ Not applicable
| Date | Place | Way of communication | Type of communication party | Communication party | Major discussion content and information provided | Index to main information communicated |
| 31 March 2021 | Meeting room of the Company | By phone | Institution | Institutional investors | Basic information of the Company | Refer to the Record of Investor Relations Activities disclosed on 1 April 2021 on www.cninfo.com.cn |
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Lu Thai Textile Co., Ltd.
31 March 2021
Unit: RMB
| Item | 31 March 2021 | 31 December 2020 |
| Current assets: | ||
| Monetary assets | 1,560,547,741.68 | 1,400,478,034.81 |
| Held-for-trading financial assets | 208,949,164.24 | 268,456,216.98 |
| Derivative financial assets | ||
| Notes receivable | 203,939,049.53 | 182,994,110.86 |
| Accounts receivable | 368,598,618.36 | 522,425,219.87 |
| Accounts receivable financing | 78,731,819.82 | 55,150,926.34 |
| Prepayments | 76,377,931.28 | 19,611,775.28 |
| Other receivables | 107,679,237.37 | 105,710,818.69 |
| Including: Interest receivable | ||
| Dividends receivable | 75,488,652.49 | 75,488,652.49 |
| Financial assets purchased under resale agreements | ||
| Inventories | 2,053,531,101.15 | 1,988,968,681.64 |
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | 46,187,513.72 | 45,750,018.30 |
| Other current assets | 334,182,823.00 | 433,432,258.63 |
| Total current assets | 5,038,725,000.15 | 5,022,978,061.40 |
| Non-current assets: | ||
| Investments in other debt obligations | ||
| Long-term receivables | 41,494,018.13 | 41,053,183.15 |
| Long-term equity investments | 135,408,217.73 | 138,079,577.25 |
| Investments in other equity instruments |
| Other non-current financial assets | 156,915,620.25 | 156,915,620.25 |
| Investment property | 22,038,327.15 | 22,263,668.85 |
| Fixed assets | 5,584,734,999.90 | 5,661,592,991.66 |
| Construction in progress | 371,180,755.74 | 356,273,197.49 |
| Right-of-use assets | 49,059,102.53 | |
| Intangible assets | 370,779,937.26 | 373,543,480.84 |
| Development costs | ||
| Goodwill | 20,563,803.29 | 20,563,803.29 |
| Long-term prepaid expense | 118,278,629.40 | 118,340,494.60 |
| Deferred income tax assets | 124,240,481.62 | 122,865,841.69 |
| Other non-current assets | 164,333,330.32 | 95,434,040.18 |
| Total non-current assets | 7,159,027,223.32 | 7,106,925,899.25 |
| Total assets | 12,197,752,223.47 | 12,129,903,960.65 |
| Current liabilities: | ||
| Short-term borrowings | 1,023,970,254.35 | 930,871,008.19 |
| Held-for-trading financial liabilities | 296,200.00 | |
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 202,700,943.72 | 243,262,473.69 |
| Advances from customers | ||
| Contract liabilities | 119,653,948.93 | 141,339,705.62 |
| Employee benefits payable | 206,120,465.61 | 265,648,198.38 |
| Taxes payable | 30,036,015.83 | 36,468,978.77 |
| Other payables | 20,636,417.79 | 17,587,470.79 |
| Including: Interest payable | ||
| Dividends payable | 441,113.64 | 441,113.64 |
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 31,235,200.20 | 43,149,400.13 |
| Other current liabilities | 68,221,106.95 | 192,574,674.68 |
| Total current liabilities | 1,702,870,553.38 | 1,870,901,910.25 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | 593,875,950.40 | 495,520,342.78 |
| Bonds payable | 1,362,080,523.74 | 1,350,171,526.97 |
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 48,672,763.55 | |
| Long-term payables | ||
| Long-term employee benefits payable | 62,137,656.00 | 62,137,656.00 |
| Provisions | ||
| Deferred income | 172,234,790.57 | 173,862,983.31 |
| Deferred income tax liabilities | 83,207,811.39 | 85,633,161.44 |
| Other non-current liabilities | ||
| Total non-current liabilities | 2,322,209,495.65 | 2,167,325,670.50 |
| Total liabilities | 4,025,080,049.03 | 4,038,227,580.75 |
| Owners’ equity: | ||
| Share capital | 858,133,968.00 | 858,132,322.00 |
| Other equity instruments | 71,385,702.20 | 71,386,451.81 |
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 255,925,746.00 | 255,912,488.01 |
| Less: Treasury stock | ||
| Other comprehensive income | 13,708,878.63 | 1,308,922.89 |
| Specific reserve | ||
| Surplus reserves | 1,154,017,457.79 | 1,154,017,457.79 |
| General reserve | ||
| Retained earnings | 5,421,350,798.62 | 5,346,819,948.22 |
| Total equity attributable to owners of the Company as the parent | 7,774,522,551.24 | 7,687,577,590.72 |
| Non-controlling interests | 398,149,623.20 | 404,098,789.18 |
| Total owners’ equity | 8,172,672,174.44 | 8,091,676,379.90 |
| Total liabilities and owners’ equity | 12,197,752,223.47 | 12,129,903,960.65 |
Legal representative: Liu Zibin The Company’s chief accountant: Zhang HongmeiThe Company’s financial manager: Zhang Keming
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 March 2021 | 31 December 2020 |
| Current assets: | ||
| Monetary assets | 600,764,110.66 | 729,437,231.33 |
| Held-for-trading financial assets | 6,045,900.00 | 163,636,075.34 |
| Derivative financial assets | ||
| Notes receivable | 111,289,560.63 | 108,863,689.79 |
| Accounts receivable | 243,301,135.80 | 326,166,935.10 |
| Accounts receivable financing | 65,415,697.65 | 48,764,088.05 |
| Prepayments | 104,805,537.00 | 13,059,806.74 |
| Other receivables | 1,931,709,627.40 | 1,500,882,682.19 |
| Including: Interest receivable | ||
| Dividends receivable | 75,488,652.49 | 75,488,652.49 |
| Inventories | 1,152,449,069.10 | 1,097,438,610.46 |
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | 46,187,513.72 | 45,750,018.30 |
| Other current assets | 159,186,110.87 | 247,860,882.02 |
| Total current assets | 4,421,154,262.83 | 4,281,860,019.32 |
| Non-current assets: | ||
| Investments in debt obligations | ||
| Investments in other debt obligations | ||
| Long-term receivables | 41,494,018.13 | 41,053,183.15 |
| Long-term equity investments | 2,784,479,499.61 | 2,555,150,859.13 |
| Investments in other equity instruments | ||
| Other non-current financial assets | 144,915,620.25 | 144,915,620.25 |
| Investment property | 29,395,483.93 | 29,734,239.22 |
| Fixed assets | 2,403,675,312.51 | 2,471,686,117.72 |
| Construction in progress | 48,896,170.47 | 48,694,822.74 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 47,948,540.88 |
| Intangible assets | 223,214,197.82 | 225,128,308.75 |
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 1,222,911.08 | 1,406,347.76 |
| Deferred income tax assets | 60,590,909.10 | 65,729,304.26 |
| Other non-current assets | 4,666,295.89 | 7,936,745.28 |
| Total non-current assets | 5,790,498,959.67 | 5,591,435,548.26 |
| Total assets | 10,211,653,222.50 | 9,873,295,567.58 |
| Current liabilities: | ||
| Short-term borrowings | 484,266,416.97 | 332,466,931.13 |
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 184,875,408.16 | 132,231,596.74 |
| Advances from customers | ||
| Contract liabilities | 54,115,445.91 | 56,841,289.66 |
| Employee benefits payable | 160,715,438.40 | 202,694,515.93 |
| Taxes payable | 18,220,213.31 | 21,896,035.49 |
| Other payables | 141,877,593.12 | 79,668,657.80 |
| Including: Interest payable | ||
| Dividends payable | 441,113.64 | 441,113.64 |
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 5,633,346.46 | 4,000,000.00 |
| Other current liabilities | 53,761,415.02 | 166,257,466.30 |
| Total current liabilities | 1,103,465,277.35 | 996,056,493.05 |
| Non-current liabilities: | ||
| Long-term borrowings | 593,875,950.40 | 495,520,342.78 |
| Bonds payable | 1,362,080,523.74 | 1,350,171,526.97 |
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 47,084,419.20 | |
| Long-term payables | ||
| Long-term employee benefits | 62,137,656.00 | 62,137,656.00 |
| payable | ||
| Provisions | ||
| Deferred income | 130,487,086.87 | 131,546,549.87 |
| Deferred income tax liabilities | 57,612,402.72 | 58,927,115.71 |
| Other non-current liabilities | ||
| Total non-current liabilities | 2,253,278,038.93 | 2,098,303,191.33 |
| Total liabilities | 3,356,743,316.28 | 3,094,359,684.38 |
| Owners’ equity: | ||
| Share capital | 858,133,968.00 | 858,132,322.00 |
| Other equity instruments | 71,385,702.20 | 71,386,451.81 |
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 317,305,780.24 | 317,292,522.25 |
| Less: Treasury stock | ||
| Other comprehensive income | -424,313.33 | -424,313.33 |
| Specific reserve | ||
| Surplus reserves | 1,150,908,718.15 | 1,150,908,718.15 |
| Retained earnings | 4,457,600,050.96 | 4,381,640,182.32 |
| Total owners’ equity | 6,854,909,906.22 | 6,778,935,883.20 |
| Total liabilities and owners’ equity | 10,211,653,222.50 | 9,873,295,567.58 |
3. Consolidated Income Statement
Unit: RMB
| Item | Q1 2021 | Q1 2020 |
| 1. Revenue | 993,485,161.79 | 1,252,428,965.20 |
| Including: Operating revenue | 993,485,161.79 | 1,252,428,965.20 |
| 2. Costs and expenses | 985,587,009.24 | 1,134,449,068.31 |
| Including: Cost of sales | 815,351,239.75 | 909,936,744.88 |
| Taxes and surcharges | 13,245,938.39 | 18,233,112.02 |
| Selling expense | 22,876,675.00 | 43,045,212.94 |
| Administrative expense | 70,211,600.57 | 85,578,691.89 |
| R&D expense | 61,633,248.90 | 62,911,416.31 |
| Finance costs | 2,268,306.63 | 14,743,890.27 |
| Including: Interest expense | 12,971,587.55 | 18,671,711.46 |
| Interest income | 7,867,810.79 | 4,314,960.98 |
| Add: Other income | 12,470,516.19 | 9,740,763.66 |
| Return on investment (“-” for loss) | 7,111,896.31 | 104,051,767.00 |
| Including: Share of profit or loss of joint ventures and associates | -2,671,359.52 | -5,524,629.57 |
| 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) | -10,376,010.56 | -99,714,752.69 |
| Credit impairment loss (“-” for loss) | 14,759,025.50 | 1,490,082.33 |
| Asset impairment loss (“-” for loss) | -6,272,617.88 | -2,090,161.60 |
| Asset disposal income (“-” for loss) | 59,394,526.45 | -37,045.69 |
| 3. Operating profit (“-” for loss) | 84,985,488.56 | 131,420,549.90 |
| Add: Non-operating income | 408,813.34 | 525,956.20 |
| Less: Non-operating expense | 2,288,330.70 | 1,540,546.20 |
| 4. Profit before tax (“-” for loss) | 83,105,971.20 | 130,405,959.90 |
| Less: Income tax expense | 14,524,286.78 | 23,719,400.54 |
| 5. Net profit (“-” for net loss) | 68,581,684.42 | 106,686,559.36 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 68,581,684.42 | 106,686,559.36 |
| 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 | 74,530,850.40 | 103,518,808.50 |
| 5.2.2 Net profit attributable to non-controlling interests | -5,949,165.98 | 3,167,750.86 |
| 6. Other comprehensive income, net of tax | 12,399,955.74 | 22,343,190.91 |
| Attributable to owners of the Company as the parent | 12,399,955.74 | 22,343,190.91 |
| 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 | 12,399,955.74 | 22,343,190.91 |
| 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 investments in other debt obligations | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Credit impairment allowance for investments in other debt obligations | ||
| 6.2.5 Reserve for cash flow hedges | ||
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | 12,399,955.74 | 22,343,190.91 |
| 6.2.7 Other | ||
| Attributable to non-controlling interests | ||
| 7. Total comprehensive income | 80,981,640.16 | 129,029,750.27 |
| Attributable to owners of the Company as the parent | 86,930,806.14 | 125,861,999.41 |
| Attributable to non-controlling interests | -5,949,165.98 | 3,167,750.86 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.09 | 0.12 |
| 8.2 Diluted earnings per share | 0.09 | 0.12 |
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees beforethe 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 HongmeiThe Company’s financial manager: Zhang Keming
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2021 | Q1 2020 |
| 1. Operating revenue | 696,922,010.49 | 848,590,550.08 |
| Less: Cost of sales | 563,691,314.04 | 660,832,545.74 |
| Taxes and surcharges | 8,914,255.65 | 12,344,378.23 |
| Selling expense | 16,130,283.27 | 24,177,042.05 |
| Administrative expense | 45,347,205.12 | 56,584,771.31 |
| R&D expense | 43,606,004.99 | 41,396,325.31 |
| Finance costs | -3,064,923.03 | -1,334,505.55 |
| Including: Interest expense | 6,503,245.70 | 1,520,513.18 |
| Interest income | 5,778,636.94 | 844,209.61 |
| Add: Other income | 7,347,296.48 | 8,032,757.34 |
| Return on investment (“-” for loss) | 3,807,861.60 | 100,681,817.00 |
| Including: Share of profit or loss of joint ventures and associates | -2,671,359.52 | -5,524,629.57 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | -7,590,175.34 | -99,714,752.69 |
| Credit impairment loss (“-” for loss) | 12,012,001.12 | -1,879,269.56 |
| Asset impairment loss (“-” for loss) | -3,411,935.03 | |
| Asset disposal income (“-” for loss) | 59,391,874.67 | -67,926.34 |
| 2. Operating profit (“-” for loss) | 93,854,793.95 | 61,642,618.74 |
| Add: Non-operating income | 370,824.18 | 480,033.81 |
| Less: Non-operating expense | 2,010,965.71 | 1,260,294.11 |
| 3. Profit before tax (“-” for loss) | 92,214,652.42 | 60,862,358.44 |
| Less: Income tax expense | 16,254,783.78 | 11,950,855.86 |
| 4. Net profit (“-” for net loss) | 75,959,868.64 | 48,911,502.58 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 75,959,868.64 | 48,911,502.58 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | ||
| 5.1 Items that will not be reclassified to profit or loss | ||
| 5.1.1 Changes caused by remeasurements on defined benefit schemes | ||
| 5.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 5.1.3 Changes in the fair value of investments in other equity instruments | ||
| 5.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 5.1.5 Other |
| 5.2 Items that will be reclassified to profit or loss | ||
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 5.2.2 Changes in the fair value of investments in other debt obligations | ||
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.4 Credit impairment allowance for investments in other debt obligations | ||
| 5.2.5 Reserve for cash flow hedges | ||
| 5.2.6 Differences arising from the translation of foreign currency-denominated financial statements | ||
| 5.2.7 Other | ||
| 6. Total comprehensive income | 75,959,868.64 | 48,911,502.58 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | 0.09 | 0.06 |
| 7.2 Diluted earnings per share | 0.10 | 0.06 |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | Q1 2021 | Q1 2020 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 997,750,757.76 | 1,336,068,394.46 |
| Net increase in customer deposits and interbank deposits | ||
| Net increase in borrowings from the 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 | ||
| Interest, handling charges and commissions received | ||
| Net increase in interbank loans obtained | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax rebates | 11,490,245.21 | 33,311,001.17 |
| Cash generated from other operating activities | 13,616,137.98 | 16,482,395.80 |
| Subtotal of cash generated from operating activities | 1,022,857,140.95 | 1,385,861,791.43 |
| Payments for commodities and services | 583,308,258.22 | 633,557,770.07 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the central bank and in interbank loans granted | ||
| Payments for claims on original insurance contracts | ||
| Net increase in interbank loans granted | ||
| Interest, handling charges and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 389,050,366.67 | 492,433,253.48 |
| Taxes paid | 35,216,278.07 | 50,812,902.16 |
| Cash used in other operating activities | 52,027,666.27 | 63,141,341.95 |
| Subtotal of cash used in operating activities | 1,059,602,569.23 | 1,239,945,267.66 |
| Net cash generated from/used in operating activities | -36,745,428.28 | 145,916,523.77 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 672,000,000.00 | 50,090,523.24 |
| Return on investment | 5,802,806.85 | 101,675,246.57 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 420,900.00 | 2,647,520.00 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | 12,538,101.84 | 35,077,977.28 |
| Subtotal of cash generated from investing activities | 690,761,808.69 | 189,491,267.09 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 149,203,426.43 | 204,045,508.07 |
| Payments for investments | 523,970,000.00 | 50,215,000.00 |
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | 1,378,057.33 | 543,397.49 |
| Subtotal of cash used in investing activities | 674,551,483.76 | 254,803,905.56 |
| Net cash generated from/used in investing activities | 16,210,324.93 | -65,312,638.47 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Including: Capital contributions by non-controlling interests to subsidiaries |
| Borrowings raised | 443,069,396.92 | 514,393,931.75 |
| Cash generated from other financing activities | 174,000,000.00 | |
| Subtotal of cash generated from financing activities | 443,069,396.92 | 688,393,931.75 |
| Repayment of borrowings | 261,626,057.07 | 562,075,997.53 |
| Interest and dividends paid | 8,455,661.04 | 13,744,425.83 |
| Including: Dividends paid by subsidiaries to non-controlling interests | ||
| Cash used in other financing activities | 130,000,000.00 | |
| Subtotal of cash used in financing activities | 270,081,718.11 | 705,820,423.36 |
| Net cash generated from/used in financing activities | 172,987,678.81 | -17,426,491.61 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 6,827,333.56 | -1,464,385.14 |
| 5. Net increase in cash and cash equivalents | 159,279,909.02 | 61,713,008.55 |
| Add: Cash and cash equivalents, beginning of the period | 1,396,530,407.47 | 878,559,018.92 |
| 6. Cash and cash equivalents, end of the period | 1,555,810,316.49 | 940,272,027.47 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2021 | Q1 2020 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 723,992,763.48 | 873,552,898.00 |
| Tax rebates | 1,876,737.81 | 22,993,582.19 |
| Cash generated from other operating activities | 11,238,910.59 | 7,321,908.78 |
| Subtotal of cash generated from operating activities | 737,108,411.88 | 903,868,388.97 |
| Payments for commodities and services | 452,741,337.91 | 508,037,912.99 |
| Cash paid to and for employees | 243,187,954.45 | 307,956,559.69 |
| Taxes paid | 22,980,861.06 | 21,316,789.59 |
| Cash used in other operating activities | 30,677,916.96 | 33,964,054.78 |
| Subtotal of cash used in operating activities | 749,588,070.38 | 871,275,317.05 |
| Net cash generated from/used in operating activities | -12,479,658.50 | 32,593,071.92 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 392,460,000.00 | 50,090,523.24 |
| Return on investment | 4,032,870.14 | 101,675,246.57 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 420,900.00 | 298,847.38 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | 121,823,568.23 | 214,014,454.30 |
| Subtotal of cash generated from investing activities | 518,737,338.37 | 366,079,071.49 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 20,211,577.70 | 16,517,130.57 |
| Payments for investments | 388,970,000.00 | 52,615,000.00 |
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | 525,315,318.44 | 248,481,770.00 |
| Subtotal of cash used in investing activities | 934,496,896.14 | 317,613,900.57 |
| Net cash generated from/used in investing activities | -415,759,557.77 | 48,465,170.92 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Borrowings raised | 264,478,566.71 | 40,415,148.91 |
| Cash generated from other financing activities | 58,215,720.00 | 58,280,000.00 |
| Subtotal of cash generated from financing activities | 322,694,286.71 | 98,695,148.91 |
| Repayment of borrowings | 18,599,340.70 | 43,913,708.07 |
| Interest and dividends paid | 5,707,658.19 | 4,331,120.89 |
| Cash used in other financing activities | 135,072,100.00 | |
| Subtotal of cash used in financing activities | 24,306,998.89 | 183,316,928.96 |
| Net cash generated from/used in financing activities | 298,387,287.82 | -84,621,780.05 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 56,243.18 | 389,348.20 |
| 5. Net increase in cash and cash equivalents | -129,795,685.27 | -3,174,189.01 |
| Add: Cash and cash equivalents, beginning of the period | 728,346,695.28 | 259,320,863.08 |
| 6. Cash and cash equivalents, end of the period | 598,551,010.01 | 256,146,674.07 |
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of the NewStandards Governing Leases since 2021
√ Applicable □ Not applicable
Whether the Company needs to adjust the items in balance sheet at the beginning of the year
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
| Item | 31 December 2020 | 1 January 2021 | Adjusted |
| Current assets: | |||
| Monetary assets | 1,400,478,034.81 | 1,400,478,034.81 | |
| Held-for-trading financial assets | 268,456,216.98 | 268,456,216.98 | |
| Notes receivable | 182,994,110.86 | 182,994,110.86 | |
| Accounts receivable | 522,425,219.87 | 522,425,219.87 | |
| Receivables financing | 55,150,926.34 | 55,150,926.34 | |
| Prepayments | 19,611,775.28 | 19,611,775.28 | |
| Other receivables | 105,710,818.69 | 105,710,818.69 | |
| Including: Dividends receivable | 75,488,652.49 | 75,488,652.49 | |
| Inventories | 1,988,968,681.64 | 1,988,968,681.64 | |
| Current portion of non-current assets | 45,750,018.30 | 45,750,018.30 | |
| Other current assets | 433,432,258.63 | 433,432,258.63 | |
| Total current assets | 5,022,978,061.40 | 5,022,978,061.40 | |
| Non-current assets: | |||
| Long-term receivables | 41,053,183.15 | 41,053,183.15 | |
| Long-term equity investments | 138,079,577.25 | 138,079,577.25 | |
| Other non-current financial assets | 156,915,620.25 | 156,915,620.25 | |
| Investment property | 22,263,668.85 | 22,263,668.85 | |
| Fixed assets | 5,661,592,991.66 | 5,661,592,991.66 | |
| Construction in progress | 356,273,197.49 | 356,273,197.49 | |
| Right-of-use assets | 6,892,432.21 | 6,892,432.21 | |
| Intangible assets | 373,543,480.84 | 373,543,480.84 | |
| Goodwill | 20,563,803.29 | 20,563,803.29 | |
| Long-term prepaid expense | 118,340,494.60 | 118,340,494.60 | |
| Deferred income tax assets | 122,865,841.69 | 122,865,841.69 | |
| Other non-current assets | 95,434,040.18 | 95,434,040.18 | |
| Total non-current assets | 7,106,925,899.25 | 7,113,818,331.46 | 6,892,432.21 |
| Total assets | 12,129,903,960.65 | 12,136,796,392.86 | 6,892,432.21 |
| Current liabilities: | |||
| Short-term borrowings | 930,871,008.19 | 930,871,008.19 | |
| Accounts payable | 243,262,473.69 | 243,262,473.69 | |
| Contract liabilities | 141,339,705.62 | 141,339,705.62 |
| Employee benefits payable | 265,648,198.38 | 265,648,198.38 | |
| Taxes and levies payable | 36,468,978.77 | 36,468,978.77 | |
| Other payables | 17,587,470.79 | 17,587,470.79 | |
| Including: Dividends payable | 441,113.64 | 441,113.64 | |
| Current portion of non-current liabilities | 43,149,400.13 | 43,599,400.13 | 450,000.00 |
| Other current liabilities | 192,574,674.68 | 192,574,674.68 | |
| Total current liabilities | 1,870,901,910.25 | 1,871,351,910.25 | 450,000.00 |
| Non-current liabilities: | |||
| Long-term borrowings | 495,520,342.78 | 495,520,342.78 | |
| Bonds payable | 1,350,171,526.97 | 1,350,171,526.97 | |
| Lease liabilities | 6,442,432.21 | 6,442,432.21 | |
| Long-term payroll payable | 62,137,656.00 | 62,137,656.00 | |
| Deferred income | 173,862,983.31 | 173,862,983.31 | |
| Deferred income tax liabilities | 85,633,161.44 | 85,633,161.44 | |
| Total non-current liabilities | 2,167,325,670.50 | 2,173,768,102.71 | 6,442,432.21 |
| Total liabilities | 4,038,227,580.75 | 4,045,120,012.96 | 6,892,432.21 |
| Owners’ equity: | |||
| Share capital | 858,132,322.00 | 858,132,322.00 | |
| Other equity instruments | 71,386,451.81 | 71,386,451.81 | |
| Capital reserves | 255,912,488.01 | 255,912,488.01 | |
| Other comprehensive income | 1,308,922.89 | 1,308,922.89 | |
| Surplus reserves | 1,154,017,457.79 | 1,154,017,457.79 | |
| Retained earnings | 5,346,819,948.22 | 5,346,819,948.22 | |
| Total equity attributable to owners of the Company as the parent | 7,687,577,590.72 | 7,687,577,590.72 | |
| Non-controlling interests | 404,098,789.18 | 404,098,789.18 | |
| Total owners’ equity | 8,091,676,379.90 | 8,091,676,379.90 | |
| Total liabilities and owners’ equity | 12,129,903,960.65 | 12,136,796,392.86 | 6,892,432.21 |
Note for adjustment:
Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 December 2020 | 1 January 2021 | Adjusted |
| Current assets: | |||
| Monetary assets | 729,437,231.33 | 729,437,231.33 | |
| Held-for-trading financial assets | 163,636,075.34 | 163,636,075.34 |
| Notes receivable | 108,863,689.79 | 108,863,689.79 | |
| Accounts receivable | 326,166,935.10 | 326,166,935.10 | |
| Receivables financing | 48,764,088.05 | 48,764,088.05 | |
| Prepayments | 13,059,806.74 | 13,059,806.74 | |
| Other receivables | 1,500,882,682.19 | 1,500,882,682.19 | |
| Including: Dividends receivable | 75,488,652.49 | 75,488,652.49 | |
| Inventories | 1,097,438,610.46 | 1,097,438,610.46 | |
| Current portion of non-current assets | 45,750,018.30 | 45,750,018.30 | |
| Other current assets | 247,860,882.02 | 247,860,882.02 | |
| Total current assets | 4,281,860,019.32 | 4,281,860,019.32 | |
| Non-current assets: | |||
| Long-term receivables | 41,053,183.15 | 41,053,183.15 | |
| Long-term equity investments | 2,555,150,859.13 | 2,555,150,859.13 | |
| Other non-current financial assets | 144,915,620.25 | 144,915,620.25 | |
| Investment property | 29,734,239.22 | 29,734,239.22 | |
| Fixed assets | 2,471,686,117.72 | 2,471,686,117.72 | |
| Construction in progress | 48,694,822.74 | 48,694,822.74 | |
| Right-of-use assets | 7,709,598.61 | 7,709,598.61 | |
| Intangible assets | 225,128,308.75 | 225,128,308.75 | |
| Long-term prepaid expense | 1,406,347.76 | 1,406,347.76 | |
| Deferred income tax assets | 65,729,304.26 | 65,729,304.26 | |
| Other non-current assets | 7,936,745.28 | 7,936,745.28 | |
| Total non-current assets | 5,591,435,548.26 | 5,599,145,146.87 | 7,709,598.61 |
| Total assets | 9,873,295,567.58 | 9,881,005,166.19 | 7,709,598.61 |
| Current liabilities: | |||
| Short-term borrowings | 332,466,931.13 | 332,466,931.13 | |
| Accounts payable | 132,231,596.74 | 132,231,596.74 | |
| Contract liabilities | 56,841,289.66 | 56,841,289.66 | |
| Employee benefits payable | 202,694,515.93 | 202,694,515.93 | |
| Taxes payable | 21,896,035.49 | 21,896,035.49 | |
| Other payables | 79,668,657.80 | 79,668,657.80 | |
| Including: Dividends payable | 441,113.64 | 441,113.64 | |
| Current portion of non-current liabilities | 4,000,000.00 | 5,139,062.02 | 1,139,062.02 |
| Other current liabilities | 166,257,466.30 | 166,257,466.30 |
| Total current liabilities | 996,056,493.05 | 997,195,555.07 | 1,139,062.02 |
| Non-current liabilities: | |||
| Long-term borrowings | 495,520,342.78 | 495,520,342.78 | |
| Bonds payable | 1,350,171,526.97 | 1,350,171,526.97 | |
| Lease liabilities | 6,570,536.59 | 6,570,536.59 | |
| Long-term employee benefits payable | 62,137,656.00 | 62,137,656.00 | |
| Deferred income | 131,546,549.87 | 131,546,549.87 | |
| Deferred income tax liabilities | 58,927,115.71 | 58,927,115.71 | |
| Total non-current liabilities | 2,098,303,191.33 | 2,104,873,727.92 | 6,570,536.59 |
| Total liabilities | 3,094,359,684.38 | 3,102,069,282.99 | 7,709,598.61 |
| Owners’ equity: | |||
| Share capital | 858,132,322.00 | 858,132,322.00 | |
| Other equity instruments | 71,386,451.81 | 71,386,451.81 | |
| Capital reserves | 317,292,522.25 | 317,292,522.25 | |
| Other comprehensive income | -424,313.33 | -424,313.33 | |
| Surplus reserves | 1,150,908,718.15 | 1,150,908,718.15 | |
| Retained earnings | 4,381,640,182.32 | 4,381,640,182.32 | |
| Total owners’ equity | 6,778,935,883.20 | 6,778,935,883.20 | |
| Total liabilities and owners’ equity | 9,873,295,567.58 | 9,881,005,166.19 | 7,709,598.61 |
Note for adjustment:
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of the NewStandards Governing Leases since 2021
□ Applicable √ Not applicable
III Independent Auditor’s ReportIndicate 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.
Chairman of the Board: Liu Zibin
Lu Thai Textile Co., Ltd.
30 April 2021