LU THAI TEXTILE CO., LTD.THIRD QUARTER REPORT 2018
October 2018
Part I Important Notes
The B oard of Di rectors (or the “Board”), the S upervi sory Committ ee as well as the directors,supervisors and senior management of Lu Thai Textile Co., Ltd. (together with itsconsolidated subsidiaries, the “Company”, except where the context otherwise requires)hereby guaran tee the fa ctuality, accuracy and co mpleteness of the co ntents of this Rep ort andits summary, and shall be jointly and severally liable for any misrepresentations, misleadingstatements 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 th e two versions, the Chinese versions
shall prevail.
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
ReasonBusiness combination under common control
30 September 2018
31 December 2017 Change (%)Before Restated RestatedTotal assets (RMB) 10,568,327,014.46
10,170,624,027.75
10,170,624,027.75
3.91%
Equity
shareholders (RMB)
7,011,958,543.23
| attributable to the listed company’s |
7,230,942,770.16
7,230,942,770.16
-3.03%
Q3 2018 YoY change (%) Q1-Q3 2018 YoY change (%)Operating revenue (RMB) 1,743,184,011.30
6.51%
5,023,591,787.12
8.42%
Net profit attributable to
shareholders (RMB)
209,540,056.51
| the listed company’s |
5.32%
586,896,015.53
-1.21%
Net profit attributable to
| the listed company’s |
shareholders before exceptional items (RMB)
224,130,296.96
23.91%
590,563,214.17
4.01%
| Net cash generated from/used in operating |
activities (RMB)
-- -- 1,123,152,616.75
| 35.24% |
Basic earnings per share (RMB/share) 0.23
9.52%
0.64
0.00%
Dilut ed earnings per share (RMB/share) 0.23
9.52%
0.64
0.00%
Weighted average return on equity (%) 2.95%
0.10%
8.08%
-0.35%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMBItem Q1-Q3 2018 Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs)
21,673,765.75
| Government subsidies charged to current profit or loss (exclusive of government subsidies |
given in the Company’
government’s uniform standards)
48,811,115.56
| s ordinary course of business at fixed quotas or amounts as per |
Gain or loss on fair-
income from disposal of trading financial assets and liabilities and available-for-
| sale financial assets (exclusive of effective portion of hedges that arise in the Company’s ordinary |
course of business)
-59,714,283.60
Lu Thai Textile Co., Ltd. Third Quarter Report 2018Non-operating income and expense other than above 3,616,214.59
Less: Income tax effects 10,405,601.73
Non-controlling interests effects (net of tax) 7,648,409.21
Total -3,667,198.64
--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 30 September 2018
1. N umbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: shareNumber of ordinary shareholders 56,205
Number of preferred sharehol
| ders with resumed |
voting rights (if any)
Top 10 shareholdersName of shareholder
Nature ofshareholder
Shareholdi
ngpercentage
Number of
shares
Restricted
shares
Shares in pledge or
frozenStatus Shares
Zibo Lucheng Textile Investment Co., Ltd.
Domesticnon-state-ownedlegal person
15.21%
140,353,583
Tailun (Thailand) Textile Co., Ltd. Foreign legal person
12.82%
118,232,400
118,232,400
Hong Kong Securities Clearing Co. Ltd Foreign legal person
3.33%
30,738,071
Central Huijin Assets Management Co., Ltd.
State-owned
person
2.20%
| legal |
20,315,300
T.Rowe Price Intl Discovery Fund Foreign legal person
2.16%
19,948,219
China Securities Finance Corporation Limited
Domesticnon-state-ownedlegal person
1.98%
18,313,391
National Social Security Fund Portfolio 103 Other 1.30%
11,999,947
Hong Kong Monetary Authority Foreign legal person
1.22%
11,255,593
Hua’an New
Securi ties Investment Fund
Other 0.85%
| Silk Road Theme Equity |
7,860,000
Lu Thai Textile Co., Ltd. Third Quarter Report 2018Bosera Selected Mixed
Investment Fund
Other 0.76%
| Securities |
6,991,034
Top 10 unrestricted shareholdersName of shareholder Unrestricted shares
Shares by typeType Shares
Zibo Lucheng Textile Investment Co., Ltd. 140,353,583
RMB-denominatedordinary stock
140,353,583
Hong Kong Securities Clearing Co. Ltd 30,738,071
RMB-denominatedordinary stock
30,738,071
Central Huijin Assets Management Co., Ltd. 20,315,300
RMB-denominatedordinary stock
20,315,300
T.Rowe Price Intl Discovery Fund 19,948,219
| Domestically listed |
foreign stock
19,948,219
China Securities Finance Corporation Limited 18,313,391
RMB-denominatedordinary stock
18,313,391
National Social Security Fund Portfolio 103 11,999,947
RMB-denominatedordinary stock
11,999,947
Hong Kong Monetary Authority 11,255,593
RMB-denominatedordinary stock
11,255,593
Hua’an New
| Silk Road Theme Equity Securities Investment |
Fund
7,860,000
RMB-denominatedordinary stock
7,860,000
Bosera Selected Mixed Securities Investment Fund 6,991,034
RMB-denominatedordinary stock
6,991,034
Foreningen AP Invest F.M.B.A. 6,055,003
| Domestically listed |
foreign stock
6,055,003
Related or acting-in-concert parties among shareholders above
| Zibo Lucheng Textile Investment Co., Ltd. is the largest | ||
shareholder and the actual cont roller of t he Company.
(Thailand) Textile Co., Ltd. is the second largest shareholder and
the foreign sponsor of the Company. All the
holding tradable A-shares or B-shares. And it
| is unknown whether |
there is any related party or acting-in-concert party among them.Top 10 ordinary shareholders involved in
trading (if any)
NaughtIndicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ 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 Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes
√ Applicable □ Not applicable
Asset items:
(1) P repayments ros e by RMB93.7771 million (or 64.03%) from the amount as at 31 December 2017 to RMB240,240,134.26 as at30 September 2018, primarily driven by prepayments of subsidiary Xinjiang Luthai Fengshou Cotton Industry Co., Ltd. (hereinafterreferred to as “Xinjiang Luthai Fengshou”) for raw materials.(2) Oth er receivables rose by R MB19.3907 million (or 34.15%) from the amount as at 31 December 2017 to RMB76,163,473.60 asat 30 September 2018, primarily driven by advances paid by Xinjiang Luthai Fengshou for agricultural machinery purchased bycotton farmers , etc.(3) Other current assets declined by RMB62.7252 million (or 52.89%) from the amount as at 31 December 2017 toRMB55,863,530.53 as at 30 September 2018, primarily driven by the withdrawal of capital under wealth management under trustupon maturity in the current period.(4) Long-term receivables rose by RMB0.6500 million (or 100.00%) from the amount as at 31 December 2017 to RMB650,000.00 asat 30 Septe mber 2018, primarily driven by finance leases of equipment by Xinjiang Luthai Fengshou.(5) Construction in progress rose by RMB336.7511 million (or 157.11%) from the amount as at 31 December 2017 toRMB551,086,721.63 as at 30 September 2018, primarily driven by more investments and to-be-installed equipment in the secondphase of the Lu Thai (Vietnam) project.(6) Other non-current assets declined by RMB11.1882 million (or 30.74%) from the amount as at 31 December 2017 toRMB25,202,247.12 as at 30 September 2018, primarily driven by decrease in prepayments for equipment.Liability and owners’ equity items:
(7) Short-term borrowings rose by RMB469.5821 million (or 41.37%) from the amount as at 31 December 2017 toRMB1,604,707,428.77 as at 30 September 2018, primarily driven by more bank loans.(8) Financial liabilities at fair value through profit or loss rose by RMB44.1122 million (or 100.00%) from the amount as at 31December 2017 to RMB44,112,150.00 as at 30 September 2018, primarily driven by unsettled forward forex settlement contracts andoption contracts as at the end of the current period.(9) Taxes p ayable rose by RMB35.0796 million (or 106.12%) from the amount as at 31 December 2017 to RMB68,134,645.51 as at30 September 2018, primarily driven by increase in corporate income tax.(10) Other payables rose by RMB86.6268 million (or 67.10%) from the amount as at 31 December 2017 to RMB215,730,155.67 asat 30 September 2018, primarily driven by increase in loans borrowed by Zibo Xinsheng Thermal Power Co., Ltd. (a subsidiary ofthe Company) from Zibo Lucheng Textile Investment Co., Ltd. (a shareholder of the Company).(11) The current portion of non-current liabilities declined by RMB62.7503 million (or 100.00%) from the amount as at 31 December2017 to RMB0.00 as at 30 September 2018, primarily driven by the repayment in the current period of Lu Thai (Vietnam)’s loansdue within one year.(12) Long-term borrowings rose by RMB157.6117 million (or 100.00%) from the amount as at 31 December 2017 toRMB157,611,749.70 as at 30 September 2018, primarily driven by the long-term loans taken out by Lu Thai (Vietnam) for theexpa ns i on of i ts se c ond pha s e .(13) Treasury stock rose by RMB404.6624 million (or 100.00%) from the amount as at 31 December 2017 to RMB404,662,394.01as at 30 September 2018, primarily driven by the B-share repurchase of the Company as the parent in the current period.(14) Other comprehensive income rose by RMB52.1264 mil lion (or 310.08%) from the amount as at 31 December 2017 to
Lu Thai Textile Co., Ltd. Third Quarter Report 2018RMB68,937,000.11 a s at 30 September 2018, primarily driven by more gains from the translation of foreign-currency-denominated
financial s tatements due to exchange rate fluctuations.Income statement items:
(15) Asset impairment loss rose by RMB1.6903 million (or 50.84%) to RMB5,015,397.48 during Q1~Q3 2018 compared to Q1~Q32017, primarily driven by increase in allowances for doubtful accounts in the current period.(16) Other income rose by RMB15.0887 million (or 48.39%) to RMB46,267,401.20 during Q1~Q3 2018 compared to Q1~Q3 2017,primarily driven by increase in government subsidies received during the ordinary course of business.(17) Investment income declined by RMB22.7519 million (or 521.37%) to RMB-18,388,041.25 during Q1~Q3 2018 compared toQ1~Q3 2017, primarily driven by greater losses on derivative investments during the current period.(18) Gain on changes in fair value declined by RMB43.3158 million (or 5438.94%) to RMB-44,112,150.00 during Q1~Q3 2018compared to Q1~Q3 2017, primarily driven by changes in the fair value of unsettled forward forex settlement contracts and optioncontracts.(19) Asset disposal income rose by RMB20.2843 million (or 687.84%) to RMB23,233,253.44 during Q1~Q3 2018 compared toQ1~Q3 2017, primarily driven by increase in income from the disposal of non-current assets during the current period.
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
During the Reporting Period, the Company executed the repurchase plan of partial B-share. As of 30 September 2018, the Companyaccumulatively repurchased 51,948,701 shares accounting for 5.6307% of total capital. For more details, please refer to relevantannouncements on repurchase of the Company’s B-share.
Overview of sig nificant events Disclosure date Announcement indexReport on Repurchase of PartialB-share of the Company
16 May 2018
Report on Repurchase of Partial B-share of the Company
www.cninfo.com.cnAnnouncement on implementation
of repurchase of B-share
29 May 2018
| on |
| Relevant announcements disclosed on Securities Times, Shanghai Securities News, China Securities Journal, Hongkong Ta Kung Pao |
and www.cninfo.com.cn.Announcement on implementation
of repurchase of B-share
1 June 2018
and www.cninfo.com.cn.Announcement on implementation
of repurchase of B-share
8 June 2018
Relevant announcements disc
| Relevant announcements disclosed on Securities Times, Shanghai Securities News, China Securities Journal, Hongkong Ta Kung Pao |
| losed on Securities Times, Shanghai Securities News, China Securities Journal, Hongkong Ta Kung Pao |
and www.cninfo.com.cn.Announcement on implementation
of repurchase of B-share
3 July 2018
Relevant announcements disclosed on Securities Times, S
and www.cninfo.com.cn.Announcement on implementation
of repurchase of B-share
12 July 2018
| hanghai Securities News, China Securities Journal, Hongkong Ta Kung Pao |
| Relevant announcements disclosed on Securities Times, Shanghai |
Securities News, Chin a Secur
and www.cninfo.com.cn.Announcement on implementationof repurchase of B-share
26 July 2018
| ities Journal, Hongkong Ta Kung Pao |
| Relevant announcements disclosed on Securities Times, Shanghai Securities News, China Securities Journal, Hongkong Ta Kung Pao |
and www.cninfo.com.cn.Announcement on implementation
of repurchase of B-share
1 Aug ust 2018
and www.cninfo.com.cn.Announcement on implementation
of repurchase of B-share
1 September 2018
| Relevant announcements disclosed on Securities Times, Shanghai Securities News, China Securities Journal, Hongkong Ta Kung Pao |
| Relevant announcements disclosed on Securities Times, Shanghai Securities News, China Securities Journal, Hongkong Ta Kung Pao |
and www.cninfo.com.cn.
III Commitments that the Company ’s Actual C ontroller, Sharehold ers, Related Parties andAcquirers, as w ell as the Company Itself and Other Parties, Failed to Fulfill on Time duringReporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV 2018 Annual Operating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in net profit for year 2018, as well as explanation of why:
□ Applicable √ Not applicable
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Per iod.
VI Wealth Management Entrustment
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)Type of wealth
management
Funding source Principal
Outstanding amount
before maturi ty
Overdue amountOther Self-funded 0
6,000
Total 0
6,000
High-risk wealth management entrustments with amounts that are individually significant, or with low security, low liquidity, or noprotection of the principal:
√ Applicable □ Not applicable
Unit: RMB’0,000Trustee
Type
of
| trustee |
Type
of
management
Princi
pal
Fundi
ng
| wealth | source |
Startdate
Enddate
Investme
nt withprincipal
Way
ofpaybac
k
Refere
nceannual
izedreturn
Expect
edreturn
(if
Actual
| gain/loss |
inReportin
Collection/payment
ofgain/lo
Impairmentallowa
Throu
ghprescri
bedproced
Anyplanfor
| nce (if | further |
entrust
Overvie
w and
moreinformat
(%) any)
| product | g Period |
ss inReport
ing
any)
| Period |
ure or
not
ment
ion (if
any)
GopherAssetManagementCo., Ltd
Fundcorporation
Fixed-income
3,000
Self-funded
December2017
January 2019
Accountsreceivable bondsbetweenGuangdongChengxing andJDcom
Payment ofprincipal andinterest uponmaturity
7.60%
N/A
Yes
Temporarilyno
GopherAssetManagementCo., Ltd
Fundcorporation
Fixed-income
3,000
Self-funded
December2017
December2019
Grantingof trustloans toHOMECREDIT
Annualpayment ofinterests andpayment ofprincipaluponmaturity
8.50%
N/A
Yes
Temporarilyno
Total 6,000
-- -- -- -- -- -- 483
--
-- -- --Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
VII Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
Count
erparty
Relati
| erparty | onship |
withtheComp
Related-part
ytransac
| any | tion or |
not
Type
ofderivat
Initialinvestment
amount
Start date
| ive |
End date
Beginninginvestment
| Purchased in |
Reporting
Period
Sold inReporting
Period
Impairme
ntallowan
ce(if
Ending
| any) | investment |
Endinginvestment as %of theCompan
y’sending
netassets
Actualgain/loss
inReporting
Period
Commercialbank
Non-connect
ed
No
Forwa
rdexchan
gesettlement
67,367.6
February2018
| 25 January |
2019
67,367.6
48,284.94
19,082.66
2.51%
-636.85
Commercialbank
Non-connect
ed
No
Foreignexchangeoption
225,451.86
2017
4 January2019
19,800
| November |
205,651.86
172,327.07
53,124.79
6.99%
-1,118.58
Commercialbank
Non-connect
ed
No
Forwardexchangetransactions
27,868.4
14 Marc h2018
2019
| 8 February |
27,868.4
23,486.9
4,381.5
0.58%
-165.35
Commercialbank
Non-connect
ed
No
Foreignexchangeswap
5,925.81
21 Marc h2018
1 1 April2018
5,925.81
5,925.81
0.00%
3.95
Total 326,613.67
-- -- 19,800
306,813.67
250,024.72
76,588.95
10.08%
-1,916.83
Funding source Self-funded
Legal matters involved (if
applicable)
N/A
| Legal matters involved (if |
| Disclosure date of board announcement approving |
derivati ve i nvestment (if any)
25 Apr il 2018
| Analysis of risks and control measures associated with derivative investments h eld in Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, |
etc.)
The Company conducted derivatives products tr
transactions. And all derivatives products transaction was z ero-deposit. Meanwhile, 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. M arket ri sk: when th e inter nation al and domestic e
| conomic situations change, the corresponding changes in exchange rates and interest rates may ha ve an adverse impact on the financial derivat ives transaction s of the |
Company. Precautionary measures to be taken include: the Company chooses risk-controlled f
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 de
according to the budget of future collections and dis bursement. The derivative trad
| es 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 d ue to lack of liquidity. The Company selects |
financial inst
trading contracts to strictly control credit risk of the counterparty.3. Operation risk:
The derivatives ha d high specialty and complexity, so imperfect i
| nternal operation procedures, staffs and |
external events would make the Company to undertake risks during the transaction.
The Company
| promulgated stri ct authorization and approval system and perfect regulatory mechanism, fi xed |
the o
system, meanwhile, it improved the overall quality of r
| elevant personnel through strengthening the |
professional ethics education and business training for them. Besides, it established the System of Reporting
the A bnorma l Situation Tim ely so as to ensure to lower the operation risks to the maximum.4. R isk of laws and regulation:
The Company con ducted derivatives prod ucts transaction in str ict accordance with relevant laws an d rules. If
| there were no stan d ard operat ion proced u res and stri ct app roval procedu res, it was easy to caus e compli ant and |
regulatory ris
signed. Risk control
| measures: The Company carefully stud ied and mastered laws, regulations and policies |
relevant to derivative products transaction, formulated
products transaction business. The Company c onducted derivative transaction business accor
| ding to the |
relevant approval procedure, which was in line with relevant laws, regulations, the Company
Associatio n, the Management Ru les for 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 17
th
M eeting of the 8
th
Board of Directors on 25 April 2018, and performed relevant information disclosure responsibilities.Changes in market pr
| ices or fair value of derivative investments in Reporting Period (fair value analysis should include measurement method and related |
ass um pti ons a nd pa r a meters)
| 1. As of 30 September 2018, the Company held a total of 28 immature derivative contracts worth |
US$
occupied 10.08 % of the net assets as at the period end.2. From January to September 2018, the total amount of the Company’s matur
| ed financial derivatives was |
US$389,641,200, all executed in accordance with the contracts with the losses of RMB19,168,300
derivatives, the matured forward settlement of exchange was US$74.5 million
| with the losses of |
RMB6,368,500; the matured foreign ex change options was US$271.6 millio
million; t he matured foreign exchange trading was US$34,141,900with the losses of RMB1.6535 million
| ; the |
matured fo r eign exchange swap was US$9,399,300 wit h the gains of RMB39,500.Major
No sign ifi cant changes
Lu Thai Textile Co., Ltd. Third Quarter Report 2018last reporting period
investments and risk control
The Company
| Opinion of independent directors on derivative | ’s independent directors Xu Jianjun, Zhao Yao, Bi Xiuli, Pan Ailing and Wang Xinyu, |
concerning conducting derivatives business, have issued the
opinion that it will strengthen the Company
| ’s competitiveness to use derivative transactions with focus on |
forward settlement and purchase as an effective tool to avoid foreign exchange ri
management. In conducting derivative transactions with focus on forward settlement and purchase,
| the |
Company follows
controllable. No harm has been done to the interests of the Company’s shareholders.
VIII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.during Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About22 Aug ust 2018 By phone Institution Key corporate information
IX Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by Controllin g Shareholder or Its Related Parties forNon-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepa r e d by L u T ha i Textile Co., Ltd.
30 Septe mber 2018
Unit: RMBItem 30 September 2018 31 December 2017Current assets:
Monetary capital813,672,036.09
693,989,293.38
Financial assets at fair value through profit or loss
Derivative financial assets
Notes and accou nts receivable 472,326,437.12
473,357,266.39
Including: Notes receivable 108,912,648.38
139,276,742.34
Accounts receivable 363,413,788.74
334,080,524.05
Prepayments240,240,134.26
146,463,066.38
Other receivables 76,163,473.60
56,772,785.11
Inventories1,998,161,973.27
2,100,661,221.93
Assets classi fied as held for sale
Current portion of non-current assets
Other curr ent assets 55,863,530.53
118,588,703.34
Total current assets3,656,427,584.87
3,589,832,336.53
Non-current assets:
Available-for-sale financial assets85,328,000.00
84,533,000.00
Held-to-maturity investments
Long-term receivables650,000.00
Long-term equity investments 94,750,824.37
97,536,732.02
Investment property23,188,725.04
24,563,544.58
Fixed assets 5,435,726,372.52
5,421,295,850.03
Construction in progress551,086,721.63
214,335,626.74
Productive living assets
Oil and gas assets
Lu Thai Textile Co., Ltd. Third Quarter Report 2018Intangible assets 483,223,335.94
498,948,301.48
R&D expense
Goodwill 20,613,803.29
20,613,803.29
Long-term prepaid expense121,245,654.53
107,877,194.52
Deferred in come t ax assets 70,883,745.15
74,697,159.71
Other no n-current assets25,202,247.12
36,390,478.85
Total non-current assets 6,911,899,429.59
6,580,791,691.22
Total assets10,568,327,014.46
10,170,624,027.75
Current liabilities:
Short-term borrowings1,604,707,428.77
1,135,124,996.40
Financial liabilities at fair value through profit or loss 44,112,150.00
Derivative financial liabilities
Notes and accou nts payable 271,553,510.79
373,566,904.50
Advances fro m cust omers111,903,443.97
119,785,945.48
Financi al assets sold under repurchase agreements
Handling char ges and comm issions payable
Payroll p ayable 273,959,802.41
316,836,488.95
Taxes payable68,134,645.51
33,055,090.58
Other payables 215,730,155.67
129,103,354.75
Current portion of non-current liabilities
62,750,292.49
Other current liabilities
Total current liabilities2,590,101,137.12
2,170,223,073.15
Non-current liabilities:
Long-term borrowings157,611,749.70
Long-term payables
Long-term payroll payable92,458,178.53
93,843,473.02
Provisions
Deferred in come125,845,411.41
126,737,092.32
Deferred income tax liabilities 3,177,184.00
2,904,899.46
Other no n-current liabilities1,840,000.00
1,840,000.00
Total non-current liabilities 380,932,523.64
225,325,464.80
Total liabilities2,971,033,660.76
2,395,548,537.95
Owners’ equity:
Share capital922,602,311.00
922,602,311.00
Lu Thai Textile Co., Ltd. Third Quarter Report 2018Capital reser ves 699,493,647.48
699,493,593.82
Less: Treasury stock404,662,394.01
Other comprehensive income 68,937,000.11
16,810,574.22
Specific reserv e
Surplus r es er ves 962,933,579.06
962,933,579.06
General reserve
Retained ear nings 4,762,654,399.59
4,629,102,712.06
Total equity attributable to owners of the Company as the parent7,011,958,543.23
7,230,942,770.16
Non-controlling interests 585,334,810.47
544,132,719.64
Total owners’ equity7,597,293,353.70
7,775,075,489.80
Total liabilities and owners’ equity 10,568,327,014.46
10,170,624,027.75
Legal representative: Liu Zibin Chief accountant: Zhang Hongmei Financial manager: Zhang Keming
2. Balance Sheet of the Company as the Parent
Unit: RMBItem 30 September 2018 31 December 2017Current assets:
Monetary capital 249,711,287.57
267,809,829.78
Financial assets at fair value through profit or loss
Derivative financial assets
Notes and accou nts receivable392,992,131.05
399,148,071.79
Including: Notes receivable 63,324,617.36
93,244,480.81
Accounts receivable 329,667,513.69
305,903,590.98
Prepayments 96,417,359.62
81,471,605.69
Other receiv ables445,016,248.84
520,008,829.95
Inventories 1,180,345,243.79
1,164,055,145.96
Assets classi fied as held for sale
Current portion of non-current assets
Other curr ent assets10,731,935.83
53,657,308.33
Total current assets 2,375,214,206.70
2,486,150,791.50
Non-current assets:
Available-for-sale financial assets 73,328,000.00
72,533,000.00
Held-to-maturity investments
Long-term receivables
Lu Thai Textile Co., Ltd. Third Quarter Report 2018Long-term equity investments 2,164,443,940.41
1,816,493,348.06
Investment property14,987,686.56
15,536,968.08
Fixed assets 2,716,789,295.13
2,811,046,847.91
Construction in progress73,691,514.89
27,312,701.62
Intangible assets 243,664,849.67
249,994,817.83
R&D expense
Goodwill
Long-term prepaid expense
Deferred in come t ax assets 45,317,300.76
51,474,007.76
Other no n-current assets11,417,122.12
27,077,391.31
Total non-current assets 5,343,639,709.54
5,071,469,082.57
Total assets7,718,853,916.24
7,557,619,874.07
Current liabilities:
Short-term borrowings867,350,637.48
622,438,413.87
Financial liabilities at fair value through profit or loss 30,399,300.00
Derivative financial liabilities
Notes and accou nts payable 207,150,403.95
154,007,599.21
Advances fro m cust omers64,454,068.52
52,314,250.61
Payroll p ayable 203,362,592.36
240,391,459.47
Taxes payable34,959,939.12
17,297,415.92
Other payables 284,560,557.39
24,347,633.13
Liabilities directly associated with assets classified as held for sale
Current portion of non-current liabilities
Other current liabilities
Total current liabilities 1,692,237,498.82
1,110,796,772.21
Non-current liabilities:
Long-term borrowings
Long-term payables
Long-term payroll payable 92,458,178.53
93,843,473.02
Provisions
Deferred in come 81,130,402.84
80,580,249.14
Deferred income tax liabilities124,200.00
4,950.00
Other no n-current liabilities
Total non-current liabilities173,712,781.37
174,428,672.16
Lu Thai Textile Co., Ltd. Third Quarter Report 2018Total liabilities 1,865,950,280.19
1,285,225,444.37
Owners’ equity:
Share capital 922,602,311.00
922,602,311.00
Capital reser ves759,836,756.57
759,836,702.91
Less: Treasury stock 404,662,394.01
Other comprehensive income703,800.00
28,050.00
Specific reserv e
Surplus r es er ves959,824,839.42
959,824,839.42
Retained ear nings 3,614,598,323.07
3,630,102,526.37
Total owners’ equity5,852,903,636.05
6,272,394,429.70
Total liabilities and owners’ equity 7,718,853,916.24
7,557,619,874.07
3. Consolidated Income Statement for Q3
Unit: RMBItem Q3 2018 Q3 20171. Reven ue1,743,184,011.30
1,636,563,847.48
Including: Operating revenue 1,743,184,011.30
1,636,563,847.48
2. Op erati ng costs and expenses1,444,665,025.79
1,414,767,717.60
Including: Cost of sales 1,202,063,269.94
1,169,036,036.50
Taxes and surcharges25,517,190.09
22,201,162.17
Selling expense 36,889,477.84
36,919,797.86
Administrative expense117,159,789.88
113,565,437.29
R&D expense 52,932,799.61
56,642,694.68
Finance costs7,208,595.79
14,040,353.14
Includ ing: Interest expense 16,558,359.20
4,528,392.85
Interest income 5,662,375.52
8,531,141.07
Asset impairment loss 2,893,902.64
2,362,235.96
Add: Other income9,124,879.25
20,296,220.07
Investment income (“-” for loss) -23,034,065.03
2,978,343.01
Including: Share of profit or loss of joint ventures and associates-1,055,310.06
Gain on changes in fair value (“-” for loss) -15,631,140.00
-1,907,100.00
Forei gn exchange gain (“-” for loss)
Asset disposal income (“-” for loss) 23,755,540.09
4,140,058.62
3. Operating profit (“-” for loss)292,734,199.82
247,303,651.58
Lu Thai Textile Co., Ltd. Third Quarter Report 2018Add: Non-operating income 2,673,434.80
437,095.61
Less: Non-operating expense1,628,939.02
516,136.99
4. Profit before tax (“-” for loss) 293,778,695.60
247,224,610.20
Less: Income tax expense44,321,359.81
35,631,014.43
5. Net profit (“-” for net loss) 249,457,335.79
211,593,595.77
5.1 Net profit from continuing operations (“-” for net loss) 249,457,335.79
211,593,595.77
5.2 Net profit from discontinued operations (“-” for net loss)
Net profit attributable to owners of the Company as the parent209,540,056.51
198,954,128.67
Net profit attributable to non-controlling interests 39,917,279.28
12,639,467.10
6. Other comprehensive income, net of tax24,566,771.97
-12,385,575.90
Attributable to owners of the Company as the parent 24,566,771.97
-12,385,575.90
6.1 Items that will not be reclassified to profit or loss
| 6.1.1 Changes in net liabilities or assets caused by remeasurements |
on defined benefit pension schemes
| 6.1.2 Share of other comprehensive income of investees that will |
not be reclassified to profit or loss under equity method
6.2 Items that may subsequently be reclassified to profit or loss 24,566,771.97
-12,385,575.90
6.2.1
reclassified to profit or loss under equity method
| Share of ot her compreh ensive inco me of investees that will be |
6.2.2 Gain/Loss on changes in fair value of available-for-
financial as sets
-344,250.00
| sale |
6.2.3 Gain/Loss arising from reclassification of held-to-
investments to available-for-sale financial assets
| maturity |
6.2.4 Effective gain/loss on cas h f low hedges
6.2.5
currency-denominated financial statements
24,911,021.97
| Differences arising from translation of foreign |
-12,385,575.90
6.2.6 Other
Attributable to non-controlling interests
7. Total comprehensive income 274,024,107.76
199,208,019.87
Attributable to owners of the Company as the parent234,106,828.48
186,568,552.77
Attributable to non-controlling interests 39,917,279.28
12,639,467.10
8. Ear ni ngs per share
8.1 B as ic earnings per share 0.23
0.21
8.2 Diluted earnings per share0.23
0.21
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 Chief accountant: Zhang Hongmei Financial manager: Zhang Keming
4. Income Statement of the Company as the Parent for Q3
Unit: RMBItem Q3 2018 Q3 20171. Op erati ng revenue 1,311,467,279.35
1,303,419,914.32
Less: Cost of sales 969,922,821.85
961,017,334.09
Taxes and surcharges 17,215,045.88
17,222,805.08
Selling expense 20,317,829.54
24,575,700.30
Administrative expense 75,809,175.22
77,219,833.80
R&D expense 37,589,240.19
36,651,450.97
Finance costs 4,383,922.13
5,369,029.33
Includ ing: Interest expense 5,775,599.84
2,205,583.58
Interest income 418,784.42
1,272,554.02
Asset impairment loss 2,207,675.19
-5,188,148.15
Add: Other income 4,231,549.46
15,198,267.82
Investment income (“-” for loss) -1,036,006.41
2,993,963.01
Including: Share of profit or loss of joint ventures and associates -1,055,310.06
Gain on changes in fair value (“-” for loss) -11,551,800.00
-1,451,200.00
Asset disposal income (“-” for loss) -60,714.02
-210,856.62
2. Operating profit (“-” for loss) 175,604,598.38
203,082,083.11
Add: Non-operating income 2,629,812.70
363,373.86
Less: Non-operating expense 1,220,654.32
66,874.28
3. Profit before tax (“-” for loss) 177,013,756.76
203,378,582.69
Less: Income tax expense 24,375,571.27
31,561,713.67
4. Net profit (“-” for net loss) 152,638,185.49
171,816,869.02
4.1 Net profit from continuing operations (“-” for net loss) 152,638,185.49
171,816,869.02
4.2 N e t profit from discontinued operations (“-” for net loss)
5. Other comprehensive income, net of tax -344,250.00
5.1 Items that will not be reclassified to profit or loss
5.1.1
defined benefit pension schemes
| Changes i n net liabilities or assets caused by remeasure ments on |
5.1.2 Share of other comprehensive income of investees th
be reclassi fied to profit or l oss under equity method
| at will not |
5.2 Items that may subsequently be reclassified to profit or loss-344,250.00
| 5.2.1 Share of other comprehensive income of investees that will be |
reclassified to profit or loss under equity method
5.2.2 Gain/Loss on changes in fair value of available-for-
assets
-344,250.00
| sale financi al |
5.2.3 Gain/ Loss arising from reclassification of held-to-
investments to available-for-sale financial assets
| maturity |
5.2.4 Effective gain/loss on cash flow hedges
| 5.2.5 Differences arising from translation of foreign |
currency-denominated financial statements
5.2.6 Other
6. Total comprehensive income152,293,935.49
171,816,869.02
7. Ear ni ngs per share
7.1 Basic earnings per share0.16
0.18
7.2 Diluted earnings per share 0.16
0.18
5. Consolidated Income Statement for Q1~Q3
Unit: RMBItem Q1~Q3 2018 Q1~Q3 20171. Reven ue5,023,591,787.12
4,633,359,418.78
Including: Operating revenue 5,023,591,787.12
4,633,359,418.78
2. Op erati ng costs and expenses4,285,430,430.29
3,932,049,880.65
Including: Cost of sales 3,562,899,701.35
3,220,519,040.29
Taxes and surcharges79,987,597.97
73,704,489.30
Selling expense 103,830,566.40
105,285,310.08
Administrative expense280,434,300.58
268,800,254.77
R&D expense 215,529,045.41
215,445,196.69
Finance costs37,733,821.10
44,970,531.42
Includ ing: Interest expense 39,093,671.25
19,181,625.09
Interest income 13,065,868.54
11,176,192.49
Asset impairment loss 5,015,397.48
3,325,058.10
Add: Other income46,267,401.20
31,178,711.35
Investment income (“-” for loss) -18,388,041.25
4,363,878.35
Including: Share of profit or loss of joint ventures and associates-2,785,907.65
Gain on changes in fair value (“-” for loss) -44,112,150.00
-796,400.00
Forei gn exchange gain (“-” for loss)
Asset disposal income (“-” for loss) 23,233,253.44
2,948,976.14
3. Operating profit (“-” for loss)745,161,820.22
739,004,703.97
Lu Thai Textile Co., Ltd. Third Quarter Report 2018Add: Non-operating income 5,680,589.63
4,798,339.44
Less: Non-operating expense3,623,862.73
5,165,062.38
4. Profit before tax (“-” for loss) 747,218,547.12
738,637,981.03
Less: Income tax expense107,596,874.38
115,086,641.45
5. Net profit (“-” for net loss) 639,621,672.74
623,551,339.58
5.1 Net profit from continuing operations (“-” for net loss) 639,621,672.74
623,551,339.58
5.2 Net profit from discontinued operations (“-” for net loss)
Net profit attributable to owners of the Company as the parent586,896,015.53
594,084,424.93
Net profit attributable to non-controlling interests 52,725,657.21
29,466,914.65
6. Other comprehensive income, net of tax52,126,425.89
-27,170,667.80
Attributable to owners of the Company as the parent 52,126,425.89
-27,170,667.80
6.1 Items that will not be reclassified to profit or loss
| 6.1.1 Changes in net liabilities or assets caused by remeasurements |
on defined benefit pension schemes
6.1.2 Share of other comprehensive income of investees that wi
not be reclassified to profit or loss under equity method
| ll |
6.2 Items that may subsequently be reclassified to profit or loss 52,126,425.89
-27,170,667.80
6.2.1
reclassified to profit or loss under equity method
| Share of ot her compreh ensive inco me of investees that will be |
6.2.2 Gain/Loss on changes in fair value of available-for-
financial as sets
675,750.00
| sale |
6.2.3 Gain/Loss arising from reclassification of held-to-
investments to available-for-sale financial assets
| maturity |
6.2.4 Effective gain/loss on cash flow hedges
| 6.2.5 Differences arising from translation of foreign |
currency-denominated financial statements
51,450,675.89
-27,170,667.80
6.2.6 Other
Attributable to non-controlling interests
7. Total comprehensive income 691,748,098.63
596,380,671.78
Attributable to owners of the Company as the parent639,022,441.42
566,913,757.13
Attributable to non-controlling interests 52,725,657.21
29,466,914.65
8. Ear ni ngs per share
8.1 B as ic earnings per share 0.64
0.64
8.2 Diluted earnings per share0.64
0.64
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.
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RMBItem Q1~Q3 2018 Q1~Q3 20171. Op erati ng revenue 3,815,256,129.99
3,785,445,678.58
Less: Cost of sales 2,831,327,287.54
2,727,698,358.16
Taxes and surcharges 57,522,630.63
54,700,584.26
Selling expense 58,633,294.63
67,896,475.33
Administrative expense 175,674,751.06
173,265,060.53
R&D expense 152,490,515.84
151,041,650.86
Finance costs 15,775,202.00
13,738,799.16
Includ ing: Interest expense 11,499,059.62
5,098,927.46
Interest income 3,615,417.12
2,925,918.00
Asset impairment loss 1,025,520.28
-4,926,016.45
Add: Other income 32,824,295.66
20,665,147.69
Investment income (“-” for loss) 881,396.52
22,252,360.62
Including: Share of profit or loss of joint ventures and associates -2,785,907.65
Gain on changes in fair value (“-” for loss) -30,399,300.00
-340,500.00
Asset disposal income (“-” for loss) -9,093,464.10
-454,572.82
2. Operating profit (“-” for loss) 517,019,856.09
644,153,202.22
Add: Non-operating income 4,494,842.92
2,570,438.61
Less: Non-operating expense 2,339,681.53
4,002,308.38
3. Profit before tax (“-” for loss) 519,175,017.48
642,721,332.45
Less: Income tax expense 81,334,892.78
97,207,407.76
4. Net profit (“-” for net loss) 437,840,124.70
545,513,924.69
4.1 Net profit from continuing operations (“-” for net loss) 437,840,124.70
545,513,924.69
4.2 Net profit from discontinued operations (“-” for net loss)
5. Other comprehensive income, net of tax 675,750.00
5.1 Items that will not be reclassified to profit or loss
| 5.1 .1 Changes in net liabil ities or assets caused by remeasurement s on |
defined benefit pension schemes
5.1.2 Share of other comprehensive income of investees th
be reclassi fied to prof it or loss under equity method
| at will not |
5.2 Items that may subsequently be reclassified to profit or loss675,750.00
| 5.2.1 Share of other comprehensive income of investees that will be |
reclassified to profit or loss under equity method
5.2.2 Gain/Loss on changes in fair value of available-for-
assets
675,750.00
| sale financi al |
5.2.3 Gain/Loss arising from reclassification of held-to-
investments to available-for-sale financial assets
| maturity |
5.2.4 Effective gain/loss on cash flow hedges
| 5.2.5 Differences arising from translation of foreign |
currency-denominated financial statements
5.2.6 Other
6. Total comprehensive income438,515,874.70
545,513,924.69
7. Ear ni ngs per share
7.1 Basic earnings per share0.47
0.59
7.2 Diluted earnings per share 0.47
0.59
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMBItem Q1~Q3 2018 Q1~Q3 20171. Cash flows from operating activities:
Proceeds fr om sale of commodities and rendering of services 4,919,565,086.62
4,574,979,319.14
Tax rebates163,977,565.90
160,047,008.71
Cash gener ated from other operating activities 72,652,513.56
86,687,670.15
Sub to tal of cas h generated from operating activities5,156,195,166.08
4,821,713,998.00
Payments for commodities and services 2,430,285,387.35
2,300,721,133.86
Cash paid to and for employees1,234,503,411.97
1,187,769,632.78
Taxes paid 195,779,524.72
272,027,616.66
Cash used in ot her operating activities172,474,225.29
230,703,535.88
Subtotal of cash used in operating activities 4,033,042,549.33
3,991,221,919.18
Net cash gen er ated from/used in operating activities1,123,152,616.75
830,492,078.82
2. Cash flows from investing activities:
Proceeds from disinvestment
Investment i ncome
long-lived assets
32,556,953.49
| Net proceeds from disposal of fixed assets, intangible assets and other |
11,449,301.27
Net proceeds from disposal of subsidiaries or other business units
Cash gener ated from other investing activities 76,342,399.31
72,404,070.11
Sub to tal of cas h generated from investing activities108,899,352.80
83,853,371.38
| Payments for acquisition of fixed assets, intangible assets and other |
806,532,720.12
435,293,077.11
Lu Thai Textile Co., Ltd. Third Quarter Report 2018long-lived assets
Payments for inv estments
50,000,000.00
Net increase in pledged loans granted
Net payments for acquisition of subsidiaries and other business units
Cash used in other investing activities27,629,580.00
Subtotal of cash used in investing activities 834,162,300.12
485,293,077.11
Net cash gen er ated from/used in investing activities-725,262,947.32
-401,439,705.73
3. Cash flows from financing activities:
Capital contributions received500,000.00
500,000.00
Including: Capital contributions by non-
subsidiaries
500,000.00
| controlling interests to |
500,000.00
Increase in borrowings obtained 2,376,163,674.80
1,255,806,409.19
Net proceeds from issuance of bonds
Cash gener ated from other financing activities 85,500,000.00
21,980,000.00
Sub to tal of cas h generated from financing activities 2,462,163,674.80
1,278,286,409.19
Repayment of borrowings 1,842,546,176.23
1,197,843,204.46
Payments for interest and dividends 496,450,783.83
491,099,353.46
Including: Dividends paid by subsidiaries to non-
12,023,566.38
| controlling interests |
12,023,566.38
Cash us ed i n other financing activities 411,967,875.77
Subtotal of cash used in financing activities 2,750,964,835.83
1,688,942,557.92
Net cash gen er ated from/used in financing activities -288,801,161.03
-410,656,148.73
4. Effect of foreign exchange rate changes on cash and cash equivalents 17,794,234.31
-13,870,445.11
5. Net in cr eas e in cash and cash equivalents 126,882,742.71
4,525,779.25
Add: Cash and cash equivalents, beginning of the period 676,639,212.86
659,304,702.34
6. Cash and cash equivalents, end of the period 803,521,955.57
663,830,481.59
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RMBItem Q1~Q3 2018 Q1~Q3 20171. Cash flows from operating activities:
Proceeds fr om sale of commodities and rendering of services 3,785,633,830.30
3,755,654,197.80
Tax rebates 106,532,179.75
111,127,591.41
Cash gener ated from other operating activities 43,398,321.95
34,568,683.53
Sub to tal of cas h generated from operating activities 3,935,564,332.00
3,901,350,472.74
Payments for commodities and services 2,128,325,245.47
2,083,382,104.36
Lu Thai Textile Co., Ltd. Third Quarter Report 2018Cash paid to and for employees 892,249,851.42
850,651,997.04
Taxes paid126,464,943.27
152,018,949.10
Cash used in ot her operating activities 101,507,637.23
116,969,182.67
Subtotal of cash used in operating activities3,248,547,677.39
3,203,022,233.17
Net cash gen er ated from/used in operating activities 687,016,654.61
698,328,239.57
2. Cash flows from investing activities:
Proceeds from disinvestment
Investment i ncome17,976,433.62
17,976,433.62
long-lived assets
91,081,938.50
| Net proceeds from disposal of fixed assets, intangible assets and other |
1,452,306.27
Net proceeds from disposal of subsidiaries or other business units
Cash gener ated from other investing activities489,871,987.82
299,727,304.86
Sub to tal of cas h generated from investing activities 598,930,359.94
319,156,044.75
| Payments for acquisition of fixed assets, intangible assets and other |
long-lived assets
164,450,789.04
69,903,614.65
Payments for inv estments 350,352,500.00
57,934,750.00
Net payments for acquisition of subsidiaries and other business units
Cash used in other investing activities 382,356,069.93
328,724,000.00
Subtotal of cash used in investing activities 897,159,358.97
456,562,364.65
Net cash gen er ated from/used in investing activities -298,228,999.03
-137,406,319.90
3. Cash flows from financing activities:
Capital contributions received
Increase in borrowings obtained 1,414,730,254.38
961,360,949.88
Net proceeds from issuance of bonds
Cash gener ated from other financing activities 241,357,600.00
Sub to tal of cas h generated from financing activities 1,656,087,854.38
961,360,949.88
Repayment of borrowings 1,189,079,694.80
873,419,137.33
Payments for interest and dividends 458,408,100.12
468,208,196.66
Cash us ed i n other financing activities 411,967,875.77
Sub-total of cash used in financing activities 2,059,455,670.69
1,341,627,333.99
Net cash gen er ated from/used in financing activities -403,367,816.31
-380,266,384.11
4. Effect of foreign exchange rate changes on cash and cash equivalents -3,518,381.48
-1,809,778.95
5. Net in cr eas e in cash and cash equivalents -18,098,542.21
178,845,756.61
Add: Cash and cash equivalents, beginning of the period 267,809,829.78
177,016,859.63
6. Cash and cash equivalents, end of the period 249,711,287.57
355,862,616.24
II Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
Chairman of the Board: Liu Zibin
Lu Thai Textile Co., Ltd.
31 October 2018