鲁泰B：2022年第三季度报告(英文)

Stock Code: 000726, 200726 Stock Name: LTTC, LTTC-B Announcement No. 2022-088Bond 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 theCompany’s Board of Directors hereby guarantee that the contents of this Report are true, accurate andcomplete 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 seniormanagement of the Company hereby guarantee that the contents of this Report are true, accurate and completeand free of any misrepresentations, misleading statements or material omissions, and collectively andindividually accept legal responsibility for such contents.

2. The Company’s legal representative, chief accountant and financial manager hereby guarantee that thefinancial 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 IndicatorsIndicate 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 losses (RMB)	322,056,642.38	299.12%	687,635,872.02	409.46%
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%

(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 policies and standards)	16,223,403.35	43,944,175.72
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 portion of hedges that arise in the Company’s ordinary course of business)	-40,231,560.83	-34,637,019.39
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 AnnouncementNo. 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

Operating revenue	39.35	YoY increase in sales volume
Net profit attributable to the listed company’s shareholders	222.44
Net profit attributable to the listed company’s shareholders before exceptional gains and losses	299.12

Basic earnings per share

Basic earnings per share	218.18	Increase in Q3 net profit
Diluted earnings per share	190.00

Q1-Q3 2022:

Q1-Q3 2022:
Operating revenue	45.97	YoY increase in sales volume
Net profit attributable to the listed company’s shareholders	181.58
Net profit attributable to the listed company’s shareholders before exceptional gains and losses	409.46
Net cash generated from/used in operating activities	197.99	Increase in cash generated from selling goods and

		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 wellas Holdings of Top 10 Shareholders

Unit: share

Number of ordinary shareholders at the period-end		52,029	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, marked or frozen
					Status	Shares
Zibo Lucheng Textile Investment Co., Ltd.	Domestic non-state-owned corporation	15.81%	140,353,583	0
Tailun (Thailand) Textile Co., Ltd.	Foreign corporation	13.32%	118,232,400	0
Central Huijin Assets Management Co., Ltd.	State-owned corporation	2.24%	19,884,100	0
National Social Security Fund Portfolio 413	Other	1.27%	11,250,051	0
Basic Old-Age Insurance Fund Portfolio 1002	Other	0.70%	6,175,600	0
Dacheng China Securities Asset Management Plan	Other	0.59%	5,235,900	0
GF China Securities Asset Management Plan	Other	0.59%	5,235,900	0
ICBC Credit Suisse Innovation Power Stock Securities Investment Fund	Other	0.57%	5,100,000	0
FEDERATED HERMES GLOBAL INVESTMENT FD (CAYMAN) MASTER, SPC OBOAFTAO FEDERATED HERMES EMG ASIA EQUITY FD MASTER S.P.	Foreign corporation	0.52%	4,623,374	0
Harvest China Securities Asset Management Plan	Other	0.50%	4,460,200	0
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	140,353,583
Tailun (Thailand) Textile Co., Ltd.		118,232,400			Domestically listed foreign stock	118,232,400
Central Huijin Assets Management Co., Ltd.		19,884,100			RMB-denominated	19,884,100

			ordinary stock
National Social Security Fund Portfolio 413	11,250,051		RMB-denominated ordinary stock	11,250,051
Basic Old-Age Insurance Fund Portfolio 1002	6,175,600		RMB-denominated ordinary stock	6,175,600
Dacheng China Securities Asset Management Plan	5,235,900		RMB-denominated ordinary stock	5,235,900
GF China Securities Asset Management Plan	5,235,900		RMB-denominated ordinary stock	5,235,900
ICBC Credit Suisse Innovation Power Stock Securities Investment Fund	5,100,000		RMB-denominated ordinary stock	5,100,000
FEDERATED HERMES GLOBAL INVESTMENT FD (CAYMAN) MASTER, SPC OBOAFTAO FEDERATED HERMES EMG ASIA EQUITY FD MASTER S.P.	4,623,374		Domestically listed foreign stock	4,623,374
Harvest China Securities Asset Management Plan	4,460,200		RMB-denominated ordinary stock	4,460,200
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 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 applicableThe Company held the Third Extraordinary General Meeting of 2022 on 15 July 2022, where the Proposal on Repurchase ofDomestically Listed Foreign Shares (B-shares) was approved, and disclosed the Report on Repurchase of Domestically ListedForeign 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 centralizedbidding. With the highest repurchase price being HKD4.78/share and the lowest being HKD4.37/share, the total payment for thisrepurchase 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.

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

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 KemingThe 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

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

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 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 KemingThe 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

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 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.

Board of Director

Lu Thai Textile Co., Ltd.29 October 2022