Lu Thai Textile Co., Ltd. Third Quarter Report 2016
LU THAI TEXTILE CO., LTD.
THIRD QUARTER REPORT 2016
October 2016
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Section I Important Statements
The Board of Directors, the Supervisory Committee, directors, supervisors and
senior management staff of Lu Thai Textile Co., Ltd. (hereinafter referred to as
“the Company”) warrant that the information carried in this report is factual,
accurate and complete, without any false record, misleading statement or
material omission. And they shall be jointly and severally liable for that.
All directors have attended the board session for reviewing this report.
Liu Zibin, company principal, Zhang Hongmei, chief of the accounting work,
and Zhang Keming, chief of the accounting organ (chief of accounting), hereby
confirm that the financial statements enclosed in this report are factual, accurate
and complete.
This Report is prepared in both Chinese and English. Should there be any
discrepancy between the two versions, the Chinese version shall prevail.
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Section II Financial Highlights & Shareholder Changes
I Highlights of accounting data and financial indicators
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year due to change in
accounting policies or correction of accounting errors
□ Yes √ No
30 September 2016 31 December 2015 +/- (%)
Total assets (RMB) 8,917,997,686.72 9,091,170,499.22 -1.90%
Net assets attributable to shareholders
6,694,781,216.36 6,837,113,075.58 -2.08%
of the Company (RMB)
January-September
July-September 2016 YoY +/- (%) YoY +/- (%)
Operating revenues (RMB) 1,433,914,063.96 -8.64% 4,265,240,836.99 -5.46%
Net profit attributable to shareholders of
236,519,891.59 15.75% 581,161,076.32 5.88%
the Company (RMB)
Net profit attributable to shareholders of
the Company excluding exceptional 222,917,425.85 18.00% 556,154,288.37 11.79%
profit and loss (RMB)
Net cash flows from operating activities
-- -- 1,091,235,207.84 30.92%
(RMB)
Basic earnings per share (RMB/share) 0.25 19.05% 0.62 8.77%
Diluted earnings per share (RMB/share) 0.25 19.05% 0.62 8.77%
Weighted average return on equity (%) 3.55% 0.66% 8.65% 0.66%
Unit: RMB
Item January-September 2016 Note
Profit/loss on disposal of non-current assets (including offset amount of asset
-7,370,719.26
impairment provisions)
Government grants charged to the profit/loss for the Reporting Period (except for the
government grants closely related to the business of the Company and given at a fixed 24,358,681.93
quota or amount in accordance with the State’s uniform standards)
Gains and losses on change in fair value from tradable financial assets and tradable
financial liabilities, as well as investment income from disposal of tradable financial
3,442,956.85
assets and tradable financial liabilities and financial assets available for sales, except
for effective hedging related with normal businesses of the Company
Non-operating incomes and expenses other than the above 4,137,517.15
Less: Income tax effects -2,576,445.85
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Minority interests effects (after tax) 2,138,094.57
Total 25,006,787.95 --
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Profit and Loss,
or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Total number of shareholders and shareholdings of top 10 shareholders at the period-end
1. Total number of ordinary shareholders and preference shareholders who had resumed their voting right
& shareholdings of top 10 shareholders at the period-end
Unit: share
Total number of ordinary Total number of preference shareholders who had
shareholders at the end of the 60,734 resumed their voting right at the end of the
Reporting Period Reporting Period (if any)
Shareholdings of top 10 shareholders
Pledged or frozen
Shareholdi Number of
Nature of Number of shares
Name of shareholder ng restricted shares
shareholder shares held Numbe
percentage held Status
r
Domestic
Zibo Lucheng Textile Investment Co., Ltd. non-state-owned 15.21% 140,353,583
corporation
Foreign
Tailun Textile Co., Ltd. 12.82% 118,232,400 118,232,400
corporation
State-owned
Central Huijin Investment Co., Ltd. 2.20% 20,315,300
corporation
Foreign
T.ROWE PRICE INTL DISCOVERY FUND 2.16% 19,948,219
corporation
Domestic
CHINA SECURITIES FINANCE
non-state-owned 1.70% 15,679,091
CORPORATION LIMITED
corporation
Foreign
LYNAS ASIA FUND 1.52% 14,000,000
corporation
Foreign
BNP Paribas SA - Self-owned funds 1.12% 10,330,698
corporation
HUA AN NEW SILK ROAD THEME Domestic
1.10% 10,110,000
EQUITY SECURITIES INVESTMENT FUND non-state-owned
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
corporation
Domestic
Remarkable Wealth Dividend Value Stock
non-state-owned 1.06% 9,765,753
Products
corporation
FIRST STATE INVESTMENTS ICVC-FIRST Foreign
0.87% 8,019,082
STATE GREATER CHINA GROWTH FUND corporation
Shareholdings of top 10 non-restricted shareholders
Number of Type of shares
non-restricted
Name of shareholder
shares held at the Type Number
period-end
RMB ordinary
Zibo Lucheng Textile Investment Co., Ltd. 140,353,583 140,353,583
share
RMB ordinary
Central Huijin Investment Co., Ltd. 20,315,300 20,315,300
share
Domestically
T.ROWE PRICE INTL DISCOVERY FUND 19,948,219 listed foreign 19,948,219
share
RMB ordinary
CHINA SECURITIES FINANCE CORPORATION LIMITED 15,679,091 15,679,091
share
Domestically
LYNAS ASIA FUND 14,000,000 listed foreign 14,000,000
share
RMB ordinary
BNP Paribas SA - Self-owned funds 10,330,698 10,330,698
share
HUA AN NEW SILK ROAD THEME EQUITY SECURITIES RMB ordinary
10,110,000 10,110,000
INVESTMENT FUND share
RMB ordinary
Remarkable Wealth Dividend Value Stock Products 9,765,753 9,765,753
share
Domestically
FIRST STATE INVESTMENTS ICVC-FIRST STATE GREATER CHINA
8,019,082 listed foreign 8,019,082
GROWTH FUND
share
Domestically
HTHK-MANULIFE CHINA VALUE FUND 6,858,138 listed foreign 6,858,138
share
Zibo Lucheng Textile Investment Co., Ltd. is the
largest shareholder of the Company and the actual
Related or act-in-concert parties among the shareholders above controller. Tailun (Thailand) Textile Co., Ltd. is the
second largest shareholder as well as sponsor of
foreign capital of the Company. All of other
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
shareholders are people holding circulating A share
or circulating B share and the Company is not able to
confirm whether there is associated relationship or
concerted action among other shareholders.
Top 10 ordinary shareholders conducting securities margin trading (if any) N/A
Did any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company conduct any
promissory repo during the Reporting Period?
□ Yea √ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top 10 of them at the period-end
□ Applicable √ Not applicable
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
Section III Significant Events
I Changes in main accounting statement items and financial indicators in the Reporting
Period, as well as reasons for the changes
√ Applicable □ Not applicable
(1) Notes receivable as at 30 September 2016 stood at RMB69,992,715.25, down 47.43% from the year-beginning amount, mainly
because bank acceptance bills were endorsed and paid to others and due L/Cs were honored.
(2) Interest receivable as at 30 September 2016 stood at RMB0.00, down 100.00% from the year-beginning amount, mainly because
accrued interest income was received.
(3) Other accounts receivable as at 30 September 2016 stood at RMB44,545,219.74, down 37.10% from the year-beginning amount,
mainly because export tax rebates receivable were received.
(4) Other current assets as at 30 September 2016 stood at RMB33,622,381.18, down 41.42% from the year-beginning amount,
mainly because the prepayment for B-share buyback and the input VAT to be deducted decreased.
(5) Construction in progress as at 30 September 2016 stood at RMB396,575,486.54, up 93.36% from the year-beginning amount,
mainly because the inputs to the Lu Thai (Vietnam) yarn-dyed fabric project and the Lu An Garments project increased.
(6) Engineering materials as at 30 September 2016 stood at RMB69,756,844.30, up 1003.79% from the year-beginning amount,
mainly because the to-be-installed equipment of Lu Thai (Vietnam) increased.
(7) Long-term deferred expenses as at 30 September 2016 stood at RMB113,055,639.73, up 32.81% from the year-beginning amount,
mainly because the land rental expenses of Lu Thai (Vietnam) and Lu An Garments increased.
(8) Financial liabilities at fair value through profit/loss as at 30 September 2016 stood at RMB0.00, down 100.00% from the
year-beginning amount, mainly because financial liabilities were delivered upon maturity.
(9) Notes payable as at 30 September 2016 stood at RMB1,242,220.00, down 60.05% from the year-beginning amount, mainly
because bank acceptance bills payable by the Company decreased.
(10) Long-term borrowings as at 30 September 2016 stood at RMB122,201,605.53, up 100.00% from the year-beginning amount,
mainly because Lu Thai (Vietnam) secured long-term borrowings.
(11) Treasury shares as at 30 September 2016 stood at RMB0.00, down 100.00% from the year-beginning amount, mainly because
the Company cancelled the B-shares bought back.
(12) Other comprehensive income as at 30 September 2016 stood at RMB34,374,282.73, up 101.13% from the year-beginning
amount, mainly because currency translation profit increased due to exchange rate changes.
(13) Finance costs for January-September 2016 stood at RMB26,357,253.37, up 68.77% year on year, mainly because net exchange
loss increased due to exchange rate changes.
(14) Asset impairment loss for January-September 2016 stood at RMB4,823,442.61, up 107.87% year on year, mainly because of the
inventory falling price provision.
(15) Profit on fair value changes for January-September 2016 stood at RMB46,397,456.20, up 387.50% year on year, mainly because
financial liabilities were delivered upon maturity.
(16) Return on investment for January-September 2016 stood at RMB-42,954,499.35, down 217.32% year on year, mainly because
of a greater loss on derivative financial instruments.
(17) Non-operating revenue for January-September 2016 stood at RMB33,540,794.44, down 36.28% year on year, mainly because
governmental subsidies decreased.
Lu Thai Textile Co., Ltd. Third Quarter Report 2016
(18) Non-operating expense for January-September 2016 stood at RMB12,415,314.62, up 137.08% year on year, mainly because of a
greater loss on disposal of fixed assets.
(19) Corporate inc
