Stock Code: 000726, 200726 Stock Name: LTTC, LTTC-B Announcement No. 2024-022Bond Code: 127016 Bond Name: LTTC Convertible Bonds
LU THAI TEXTILE CO., LTD.ANNUAL REPORT 2023 (SUMMARY)Part I Important NotesThis Summary is based on the full Annual Report of Lu Thai Textile Co., Ltd. (together with its consolidated subsidiaries, the“Company”, except where the context otherwise requires). In order for a full understanding of the Company’s operating results,financial position and future development plans, investors should carefully read the aforesaid full text, which has been disclosedtogether with this Summary on the media designated by the China Securities Regulatory Commission (the “CSRC”).All the Company’s directors have attended the Board meeting for the review of this Report and its summary.Independent auditor’s modified opinion:
□ Applicable ? Not applicable
Board-approved final cash and/or stock dividend plan for ordinary shareholders for the Reporting Period:
? Applicable □ Not applicableBonus issue from capital reserves:
□ Yes ? No
The Board has approved a final dividend plan as follows: based on the share capital of 817,431,206 shares (exclusive of repurchasedand retired B-shares), a cash dividend of RMB1.30 (tax inclusive) per 10 shares is to be distributed to the shareholders, with nobonus issue from either profit or capital reserves.Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting Period:
□ 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 | ||
| Previous stock name (if any) | N/A | ||
| Contact information | Board Secretary | Securities Representative |
| Name | Zhang Keming | Zheng Weiyin and Li Kun |
| Address | 81 Songling East Road, Zichuan District, Zibo City, Shandong Province, P.R.China | 81 Songling East Road, Zichuan District, Zibo City, Shandong Province, P.R.China |
| Fax | 0533-5418805 | 0533-5418805 |
| Tel. | 0533-5277008 | 0533-5285166 |
| Email address | zhangkeming@lttc.com.cn | wyzheng@lttc.com.cn，likun@lttc.com.cn |
2. Principal Activities or Products in the Reporting Period
Lu Thai has always adhered to its mission of “creating wealth, contributing to the society, clothing the world and weaving our wayto every corner of the globe”, as well as to its values of “people foremost policy, rigorous scientific attitude, client oriented principleand integrity for win-win outcome”. It has gradually become a textile and garment enterprise group with comprehensive and verticalproduction capacities integrating spinning, bleaching and dyeing, weaving, afterfinish and clothing manufacture. Lu Thai producesand sells middle and high-grade yarn-dyed fabric, dyeing fabric, functional fabric and knitted fabric for shirts, as well as garment. Itclaimed its fame for its comprehensive management, R&D ability, advanced technology, stable quality and international operations.Moreover, it also attaches great importance to improving the added value of its products, explore the emerging market and renew itsservice philosophy. Lu Thai has become the world’s largest high-grade yarn dyed fabric producer and a world-class premium shirtprovider. It had paved its development pattern featured in going green, low-carbon growth, science and technology and humanism.Over 60% of Lu Thai’s products are exported to over 60 countries and regions. Moreover, the Company has established strategicpartnership with renowned brand owners at home and abroad.
3. Key Financial Information
(1) Key Financial Information of the Past Three Years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes ? No
Unit: RMB
| 31 December 2023 | 31 December 2022 | Change of 31 December 2023 over 31 December 2022 (%) | 31 December 2021 | |
| Total assets | 13,430,286,222.94 | 13,351,097,602.03 | 0.59% | 12,987,221,271.63 |
| Equity attributable to the listed company’s shareholders | 9,230,806,905.80 | 9,014,156,872.71 | 2.40% | 7,983,307,400.03 |
| 2023 | 2022 | 2023-over-2022 change (%) | 2021 | |
| Operating revenue | 5,961,477,252.98 | 6,938,342,135.90 | -14.08% | 5,238,262,348.85 |
| Net profit attributable to the listed company’s shareholders | 403,444,254.42 | 963,864,819.43 | -58.14% | 347,609,693.30 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses | 386,135,437.00 | 795,473,953.21 | -51.46% | 190,492,580.40 |
| Net cash generated from/used in operating activities | 854,864,537.42 | 1,422,310,774.26 | -39.90% | 348,137,005.48 |
| Basic earnings per share (RMB/share) | 0.47 | 1.10 | -57.27% | 0.39 |
| Diluted earnings per share (RMB/share) | 0.42 | 0.95 | -55.79% | 0.36 |
| Weighted average return on equity (%) | 4.40% | 11.31% | -6.91% | 4.44% |
(2) Key Financial Information by Quarter
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operating revenue | 1,378,301,160.57 | 1,462,190,101.90 | 1,502,888,352.91 | 1,618,097,637.60 |
| Net profit attributable to the listed company’s shareholders | 95,759,162.05 | 125,888,836.10 | 113,464,972.86 | 68,331,283.41 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses | 51,332,367.74 | 140,477,494.20 | 110,981,395.05 | 83,344,180.01 |
| Net cash generated from/used in operating activities | -36,789,172.94 | 185,399,389.92 | 12,047,210.33 | 694,207,110.11 |
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from whathave been disclosed in the Company’s quarterly or interim reports.
□ Yes ? No
4. Share Capital and Shareholder Information at the Period-End
(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as wellas Holdings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders at the period-end | 49,725 | Number of ordinary shareholders at the month-end prior to the disclosure of this Report | 48,031 | Number of preferred shareholders with resumed voting rights at the period-end | 0 | Number of preferred shareholders with resumed voting rights at the month-end prior to the disclosure of this Report | 0 | ||||||
| Top 10 shareholders (exclusive of shares lent in refinancing) | |||||||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Restricted shares held | Shares in pledge, marked or frozen | ||||||||
| Status | Shares | ||||||||||||
| Zibo Lucheng Textile Investment Co., Ltd. | Domestic non-state-owned legal person | 16.25% | 140,353,583 | 0 | N/A | 0 | |||||||
| Tailun (Thailand) Textile Co., Ltd. | Foreign legal person | 13.69% | 118,232,400 | 0 | N/A | 0 | |||||||
| Central Huijin Assets Management Co., Ltd. | State-owned legal person | 2.30% | 19,884,100 | 0 | N/A | 0 | |||||||
| National Social Security Fund Portfolio 413 | Other | 1.64% | 14,190,051 | 0 | N/A | 0 | |||||||
| ICBC Credit Suisse Innovation Power Stock Type Securities Investment Fund | Other | 1.38% | 11,910,000 | 0 | N/A | 0 | |||||||
| ICBC Credit Suisse Selected Balanced Mixed Securities Investment Fund | Other | 0.84% | 7,230,000 | 0 | N/A | 0 | |||||||
| Dongfanghong Zhihua Three-Year Holding Mixed Securities Investment Fund | Other | 0.75% | 6,451,750 | 0 | N/A | 0 | |||||||
| FEDERATED HERMES GLOBAL INVESTMENT FD (CAYMAN) MASTER, | Foreign legal person | 0.72% | 6,200,183 | 0 | N/A | 0 | |||||||
| SPC OBOAFTAO FEDERATED HERMES EMG ASIA EQUITY FD MASTER S.P. | ||||||
| Dongfanghong Dingyuan 3-Month Fixed Term Open Mixed Initiating Securities Investment Fund | Other | 0.61% | 5,276,400 | 0 | N/A | 0 |
| Dacheng China Securities Asset Management Plan | Other | 0.60% | 5,144,200 | 0 | N/A | 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) | Naught | |||||
Top 10 shareholders involved in refinancing shares lending
□Applicable ? Not applicable
Changes in shares that the top 10 shareholders lend in refinancing compared with the prior period? Applicable □ Not applicable
Unit: share
| Changes in shares that the top 10 shareholders lend in refinancing compared with the end of the prior period | |||||
| Full name of shareholder | Increase/decrease in the Reporting Period | Shares lent in refinancing and not yet returned at the period-end | Shares in the common account and credit account plus shares lent in refinancing and not yet returned at the period-end | ||
| Total shares | As % of total share capital | Total shares | As % of total share capital | ||
| GF Fund-ABC- GF China Securities Asset Management Plan | Decrease | 0 | 0.00% | 4,833,300 | 0.56% |
| Harvest Fund-ABC- Harvest China Securities Asset Management Plan | Decrease | 0 | 0.00% | 3,674,700 | 0.43% |
| Yinhua Fund-ABC- Yinhua China Securities Asset Management Plan | Decrease | 0 | 0.00% | 4,320,212 | 0.50% |
| CCB- ICBC Credit Suisse Selected Balanced Mixed Securities Investment Fund | Increase | 0 | 0.00% | 7,230,000 | 0.84% |
| CCB- Dongfanghong Zhihua Three-Year Holding Mixed Securities Investment Fund | Increase | 0 | 0.00% | 6,451,750 | 0.75% |
| Shanghai Pudong Development Bank Co., Ltd.- Dongfanghong Dingyuan 3-Month Fixed Term Open Mixed Initiating Securities Investment Fund | Increase | 0 | 0.00% | 5,276,400 | 0.61% |
(2) Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable ? Not applicable
No preferred shareholders in the Reporting Period.
(3) Ownership and Control Relations between the Actual Controller and the Company
5. Outstanding Bonds at the Date when this Report Was Authorized for Issue
? Applicable □ Not applicable
(1) Bond Profile
| Bond name | Abbr. | Bond code | Date of issue | Maturity | Balance (RMB’0,000) | Coupon rate |
| Convertible Corporate Bonds of Lu Thai Textile Co., Ltd. | LTTC Convertible Bonds | 127016 | 9 April 2020 | 8 April 2026 | 139,984.94 | |
| Redemption and interest payments during the Reporting Period | 1. For LTTC Convertible Bonds, the coupon rates are: 0.3% for the first year, 0.6% for the second year, 1.0% for the third year, 1.5% for the fourth year, 1.8% for the fifth year, and 2.0% for the sixth year. 2. On 10 April 2023, the Company paid the interest for the third year according to the par value of the bonds, i.e. interest of RMB10.00 (tax inclusive) for every 10 “LTTC Convertible Bonds” (par value: RMB1,000). | |||||
(2) Latest Follow-up Ratings and Rating Changes of the Bonds
The credit rating of the Company's convertible bonds for the Reporting Period is AA+, which has not changed compared with that ofthe same period of last year.
(3) Key Financial Information of the Company for the Past Two Years
Unit: RMB'0,000
| Item | 2023 | 2022 | Change |
| Debt/asset ratio | 28.39% | 29.53% | -1.14% |
| Net profit before exceptional gains and losses | 38,613.54 | 79,547.4 | -51.46% |
| EBITDA/debt ratio | 41.97% | 66.20% | -24.23% |
| Interest coverage (times) | 5.29 | 11.25 | -52.98% |
Part III Significant EventsThe Company completed the formalities for cancellation of the 23,935,748 B shares repurchased during the period from 27 July2022 to 8 May 2023 at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on 25 May 2023.For details, see the Company’s Announcement No. 2023-034 disclosed on www.cninfo.com.cn at 26 May 2023.The Proposal on Repurchase of Domestically Listed Foreign Shares (B-Stock) was approved at the 10
th Meeting of the 10
thBoardof Directors and the First Extraordinary General Meeting of 2023. As such, an amount of no more than RMB200 million would beused to repurchase shares, with a price limit of HKD4.80 per share, within 12 months from the date when the share repurchaseplan was approved at the general meeting. For details, see the relevant announcements (No.: 2023-043, 2023-044, 2023-053, 2023-054 and 2023-055) and documents disclosed on 20 June 2023 and 7 July 2023 on www.cninfo.com.cn.
Chairman of the Board: Liu Zibin
Lu Thai Textile Co., Ltd.
12 April 2024