Stock Code: 000726, 200726 Stock Name: LTTC, LTTC-B Announcement No. 2019-053
LU THAI TEXTILE CO., LTD.INTERIM REPORT 2019 (SUMMARY)
Part I Important NotesThis Summary is based on the full text of the 2019 Interim Report of Lu Thai Textile Co., Ltd. (together with its consolidatedsubsidiaries, the “Company”, except where the context otherwise requires). In order for a full understanding of the Company’soperating results, financial condition and future development plans, investors should carefully read the aforesaid full text, which hasbeen disclosed together with this Summary on the media designated by the China Securities Regulatory Commission (the “CSRC”).All the directors of the Company except for the following attended in person the Board meeting for the review of this Report and itssummary.
| Name | Office title | Reason for not attending the meeting in person | Proxy entrusted to attend the meeting |
| Fujiwara Hidetoshi | Director | For reason of other work | Qin Guiling |
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies ormisunderstandings between the two versions, the Chinese versions shall prevail.
Part II Key Corporate Information
1. Stock Profile
| Stock name | LTTC, LTTC-B | Stock code | 000726, 200726 | |
| Stock exchange for stock listing | Shenzhen Stock Exchange | |||
| Contact information | Board Secretary | Securities Representative | ||
| Name | Zhang Keming | Zheng Weiyin and Li Kun | ||
| Office address | No. 81, Songling East Road, Zichuan District, Zibo, Shandong, P.R.China | No. 81, Songling East Road, Zichuan District, Zibo, Shandong, P.R.China | ||
| Tel. | 0533-5277008 | 0533-5285166 | ||
| E-mail address | zhangkeming@lttc.com.cn | wyzheng@lttc.com.cn，likun@lttc.com.cn | ||
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Accounting policy changes resulted in the retrospective restatements in the following table.
| H1 2019 | H1 2018 | Change (%) | ||
| Before | Restated | Restated | ||
| Operating revenue (RMB) | 3,185,448,344.01 | 3,281,014,155.43 | 3,280,407,775.82 | -2.89% |
| Net profit attributable to the listed company’s shareholders (RMB) | 411,446,216.59 | 377,355,959.02 | 377,355,959.02 | 9.03% |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 376,816,535.93 | 366,948,339.88 | 366,432,917.21 | 2.83% |
| Net cash generated from/used in operating activities (RMB) | 119,717,062.57 | 697,784,710.77 | 697,784,710.77 | -82.84% |
| Basic earnings per share (RMB/share) | 0.48 | 0.41 | 0.41 | 17.07% |
| Diluted earnings per share (RMB/share) | 0.48 | 0.41 | 0.41 | 17.07% |
| Weighted average return on equity (%) | 5.70% | 5.13% | 5.13% | 0.57% |
| 30 June 2019 | 31 December 2018 | Change (%) | ||
| Before | Restated | Restated | ||
| Total assets (RMB) | 11,202,182,466.95 | 10,537,759,811.84 | 10,537,759,811.84 | 6.31% |
| Equity attributable to the listed company’s shareholders (RMB) | 7,135,598,465.75 | 7,146,548,467.86 | 7,146,548,467.86 | -0.15% |
3. Shareholders and Their Holdings as at 30 June 2019
Unit: share
| Number of ordinary shareholders | 55,045 | Number of preferred shareholders with resumed voting rights (if any) | 0 | ||||||
| Top 10 shareholders | |||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Number of shares | Restricted shares | 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 | 118,232,4 | |||||
| 00 | ||||||
| Hong Kong Securities Clearing Co. Ltd | Foreign legal person | 3.03% | 25,985,611 | 0 | ||
| Central Huijin Assets Management Co., Ltd. | State-owned legal person | 2.37% | 20,315,300 | 0 | ||
| T.Rowe Price Intl Discovery Fund | Foreign legal person | 2.32% | 19,948,219 | 0 | ||
| China Securities Finance Corporation Limited | Domestic non-state-owned legal person | 2.13% | 18,313,391 | 0 | ||
| Hong Kong Monetary Authority-self-owned funds | Foreign legal person | 2.04% | 17,487,884 | 0 | ||
| National Social Security Fund Portfolio 103 | Other | 1.34% | 11,499,947 | 0 | ||
| National Social Security Fund Portfolio 413 | Other | 0.93% | 7,980,051 | 0 | ||
| RBC Emerging Markets Small Cap Equity Fund | Foreign legal person | 0.72% | 6,181,462 | 0 | ||
| Related or acting-in-concert parties among the shareholders above | Zibo Lucheng Textile Investment Co., Ltd. is the largest shareholder and the actual controller of the Company. Tailun (Thailand) Textile Co., Ltd. is the second largest shareholder and the foreign sponsor of the Company. All the other shareholders are holding tradable A-shares or B-shares. And it is unknown whether there is any related party or acting-in-concert party among them. | |||||
| Shareholders involved in securities margin trading (if any) | N/A | |||||
4. Change of the Controlling Shareholder or the Actual Controller in the Reporting PeriodChange of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
6. Corporate bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding before the date of thisReport’s approval or were due but could not be redeemed in full?No.
Part III Operating Performance Discussion and Analysis
1. Business Overview of the Reporting Period
Is the Company subject to any industry-specific disclosure requirements?No.
For the Reporting Period, the Company recorded operating revenue of RMB3,185 million, an operating profit of RMB495 million, anet profit attributable to the listed company’s shareholders of RMB411 million and a net profit before exceptional gains and losses ofRMB377 million, down 2.89% and up 9.33%, 9.03% and 2.83% respectively from the same period of last year. No changes haveoccurred to the principal activities, the main profit sources and structure of the Company in this period.During the Reporting Period, the Company continued to steadily promote “Improving Quality and Efficiency” and “ComprehensiveInternationalization”, maintaining the sound, stable and sustained development trend; made steady progress in its overseas expansionprogramme and basically achieved the design expectation; and enhanced market survey for further communication with customersand improved the “manufacturing + design” service ability, which accelerated market extension efficiency. The Company deepenedits relationship with customers through proactive measures such as adjustment of product structure, integration of supply chains,design and development connection, brand cooperation and e-commerce platforms and facing new characteristics and new demandsof the market, kept improving product design concept and innovating service mode to meet market demand and keep up with thedevelopment trends. During the Reporting Period, the Company was honored as “Top 100 Garment Makers 2018” by the ChinaNational Garment Association, “Top 100 Private Enterprises with the Highest Brand Value of Shandong Province” and “High-EndBrand Builders in the Manufacturing Sector of Shandong Province” by the Shandong Council for Brand Development.During the Reporting Period, the Company continued to persist in R&D investments, making new achievements in the application ofnew materials, research of new fabrics, key technologies of new product development and research of equipment upgrading by meansof organizing science and technology lectures as well as cooperating with prominent domestic colleges. Two key R&D projectsincluded in China’s 13th Five-Year Plan, which are conducted by the Company, have passed the interim examination. As of the endof the Reporting Period, the Company had 379 granted patents and 3 software copyrights; as well as had hosted or participated in theformulation of 50 national and industrial standards.During the Reporting Period, the design work of products targeting western and female consumers, etc. was completed for theautumn and winter of 2020, which consist of 71 series under eight themes. The relevant promotion activities, samples and specificdesign are underway together with the business department.At the current stage, Lu Thai, with natural fabric as its flagship, multi-component functional fiber fabric as its spearhead,wash-and-wear non-ironing technology as its core competency, the latest consumption trend as its guidance and internationalizedindustrial manufacturing as its basis, is sparing every effort to attain a global integrated development, so as to ensure its leadingposition in the yarn-dyed shirt fabric sector.
2. Matters Related to Financial Reporting
(1) Changes to Accounting Policies, Accounting Estimates or Measurement Methods Compared to the LastAccounting Period
□ Applicable √ Not applicable
No such changes.
(2) Retrospective Restatements due to the Correction of Material Accounting Errors in the ReportingPeriod
□ Applicable √ Not applicable
No such cases.
(3) Changes to the Scope of Consolidated Financial Statements Compared to the Last Accounting Period
√ Applicable □ Not applicable
Shandong Lulian New Materials Co., Ltd. (hereinafter refer to as “Lulian New Materials”) and Lu Thai (Tan Chau) Textile Co., Ltd.(hereinafter refer to as “Lu Thai Tan Chau”) were incorporated as a subsidiary and a sub-subsidiary of the Company respectivelyduring the Reporting Period.
Chairman of the Board: Liu Zibin
Lu Thai Textile Co., Ltd.
3 August 2019