2014 Annual Report of Lu Thai Textile Co., Ltd.
LU THAI TEXTILE CO., LTD.
2014 ANNUAL REPORT
March 2015
2014 Annual Report of Lu Thai Textile Co., Ltd.
Section I. Important Reminders, Catalogue & Explanation
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 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.
Except for the following directors, all the other directors have attended in person the board session
for reviewing this report.
Reason for not attending in
Name of director Position Name of proxy
person
Chen Ruimou Director For the reason of work Tengyuan Yingli
Wang Lei Independent Director For the reason of work Zhou Zhiji
The Companys profit distribution preplan upon review and approval of this board session: Based
on the total 955,758,496 shares, a cash dividend of RMB 5.00 (tax included) will be distributed for
every 10 shares held by shareholders. No bonus shares will be granted and no capital reserve will be
turned into share capital.
Liu Shizhen, 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 Report
enclosed in this report is 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.
2014 Annual Report of Lu Thai Textile Co., Ltd.
Catalogue
Section I. Important Reminders, Catalogue & Explanation .....................................................................................................................2
Section II. Company Profile ....................................................................................................................................................................6
Section III. Accounting & Business Highlights .......................................................................................................................................8
Section IV. Report of the Board of Directors ......................................................................................................................................... 11
Section V. Significant Events.................................................................................................................................................................40
Section VII. Preferred Shares ................................................................................................................................................................54
Section VIII. Directors, supervisors, senior executives and staff ...........................................................................................................54
Section X. Internal Control ....................................................................................................................................................................76
Section XII. Documents for Reference ................................................................................................................................................197
2014 Annual Report of Lu Thai Textile Co., Ltd.
Explanation
Term Refers to Contents
Issuer, Company, the Company Refers to Lu Thai Textile Co., Ltd.
The Board of Directors Refers to The Board of Directors of Lu Thai Textile Co., Ltd.
The Supervisory Committee Refers to The Supervisory Committee of Lu Thai Textile Co., Ltd.
CSRC Refers to China Securities Regulation Commission
Yuan, Ten thousand Refers to RMB Yuan, RMB Ten thousand
The ―Company Law‖ Refers to The ―Company Law of the Peoples Republic of China‖
The ―Securities Law‖ Refers to The ―Securities Law of the Peoples Republic of China‖
Reporting period Refers to 1 Jan. 2014-31 Dec. 2014
2014 Annual Report of Lu Thai Textile Co., Ltd.
Reminder of Major Risks
The Company has given a detailed description of possible risks in this report. For details, please
refer to the contents about the major risks and countermeasures in the outlook of the Company‘s
future development in ―Section IV. Report of the Board of Directors‖. Securities Times,
Shanghai Securities News, Ta Kung Pao (HK) and www.cninfo.com.cn were designated by the
Company as the media for information disclosure for 2015. All information of the Company
shall be subject to what is disclosed by the Company on the said media. And Investors are
kindly reminded to pay attention to possible investment risks.
2014 Annual Report of Lu Thai Textile Co., Ltd.
Section II. Company Profile
I. Company information
Stock abbreviation LTA, LTB Stock code 000726, 200726
Stock abbreviation after
Naught
change (if any)
Stock exchange listed with Shenzhen Stock Exchange
Chinese name of the Company 鲁泰纺织股份有限公司
Abbr. of the Chinese name of
鲁泰纺织
the Company
English name of the Company
LU THAI TEXTILE CO.,LTD
(if any)
Abbr. of the English name of
LTTC
the Company (if any)
Legal representative of the
Liu Shizhen
Company
Registered address No. 11, Mingbo Road, High-tech Industry Development Zone, Zibo, Shandong, P.R.China
Postal code for the registered
address
No. 81, Songling East Road, Zichuan District, Zibo, Shandong, P.R.China; No. 11, Mingbo Road,
Office address
High-tech Industry Development Zone, Zibo, Shandong, P.R.China
Postal code for the office
255100; 255086
address
Internet website of the
www.lttc.com.cn
Company
Email address lttc@lttc.com.cn
II. Contact us
Company Secretary Securities Affairs Representative
Name Qin Guiling Zheng Weiyin
No. 81, Songling East Road, Zichuan No. 81, Songling East Road, Zichuan
Contact address
District, Zibo, Shandong, P.R.China District, Zibo, Shandong, P.R.China
Tel. 0533-5266188 0533-5285166
Fax 0533-5418805;5282188-234 0533-5418805
2014 Annual Report of Lu Thai Textile Co., Ltd.
E-mail qinguiling@lttc.com.cn wyzheng@lttc.com.cn
III. About information disclosure and where this report is placed
Newspapers designated by the Company for
Securities Times, Shanghai Securities News, Ta Kung Pao (HK)
information disclosure
Internet website designated by CSRC for disclosing
www.cninfo.com.cn
this report
Where this report is placed The Securities Department of the Company
IV. Change of the registered information
Registration code Organizational
Registration date Registration place Business license No.
of taxation code
Zibo Municipal
Initial
11 Nov. 1993 Administration Bureau for GSQHLZZ No. 00066 370302613281175 61328117-5
registration
Industry and Commerce
Zibo Municipal
At the end of the
13 Nov. 2014 Administration Bureau for 370300400002843 370302613281175 61328117-5
reporting period
Industry and Commerce
Changes of the main business since
Unchanged
listing (if any)
Changes of the controlling
Unchanged
shareholder (if any)
V. Other information
The CPAs firm hired by the Company:
Name Ruihua Certified Public Accountants LLP
5-11F, West Tower, China Overseas Property Plaza, Block No. 7, Compound No. 8, Xibinhe
Office address
Road, Yongdingmen, Dongcheng District, Beijing, P.R.C.
Signing accountants He Feng, Cui Xiaoli
Sponsor engaged by the Company to conduct sustained supervision during the reporting period
□ Applicable √ Inapplicable
Financial consultant engaged by the Company to conduct sustained supervision during the reporting period
□ Applicable √ Inapplicable
2014 Annual Report of Lu Thai Textile Co., Ltd.
Section III. Accounting & Business Highlights
I. Major accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the
accounting policy or correction of any accounting error?
√ Yes □ No
Increase
or
decrease
2013 of this
year over
last year
(%)
After
Before
Before adjustment After adjustment adjustme After adjustment
adjustment
nt
Operating revenue (RMB
6,169,688,792.53 6,478,245,029.16 6,478,245,029.16 -4.76% 5,901,049,894.02 5,901,049,894.02
Yuan)
Net profit attributable to
shareholders of the Company 958,725,402.84 999,256,730.65 999,256,730.65 -4.06% 707,857,544.14 707,857,544.14
(RMB Yuan)
Net profit attributable to
shareholders of the Company
876,095,180.42 929,001,764.94 929,001,764.94 -5.69% 670,533,382.36 670,533,382.36
after extraordinary gains and
losses (RMB Yuan)
Net cash flows from operating
1,112,095,349.02 1,453,925,021.59 1,453,925,021.59 -23.51% 1,170,463,168.56 1,170,463,168.56
activities (RMB Yuan)
Basic EPS (RMB Yuan/share) 1.00 1.04 1.04 -3.85% 0.71 0.71
Diluted EPS (RMB
1.00 1.04 1.04 -3.85% 0.71 0.71
Yuan/share)
Weighted average ROE (%) 15.39% 17.90% 17.90% -2.51% 13.57% 13.57%
Increase
or
decrease
As at 31 Dec. of this
As at 31 Dec. 2013 As at 31 Dec. 2012
2014 year-end
than last
year-end
(%)
2014 Annual Report of Lu Thai Textile Co., Ltd.
After
Before
Before adjustment After adjustment adjustme After adjustment
adjustment
nt
Total assets (RMB Yuan) 8,627,671,393.88 8,411,948,561.49 8,411,948,561.49 2.56% 8,153,279,084.33 8,153,279,084.33
Net assets attributable to
shareholders of the Company 6,588,772,245.55 5,988,054,133.73 5,988,054,133.73 10.03% 5,268,701,258.26 5,268,701,258.26
(RMB Yuan)
II. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
√ Applicable □ Inapplicable
Unit: RMB Yuan
Net profit attributable to shareholders of the Net assets attributable to shareholders of the
Company Company
2014 2013 Closing amount Opening amount
According to Chinese
958,725,402.84 999,256,730.65 6,588,772,245.55 5,988,054,133.73
accounting standards
Items and amounts adjusted according to international accounting standards
Impact on domestic equipment
tax credit recognized as
deferred income under 1,225,000.00 1,509,000.00 -2,069,000.00 -3,294,000.00
international accounting
standards
According to international
959,950,402.84 1,000,765,730.65 6,586,703,245.55 5,984,760,133.73
accounting standards
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √ Inapplicable
No difference in the report period.
3. Explain reasons for the differences between accounting data under domestic and overseas accounting
standards
√ Applicable □ Inapplicable
Effects of domestic equipment exempted from income tax
The Company exempted from income tax for buying domestic equipment. According to Chinese accounting
2014 Annual Report of Lu Thai Textile Co., Ltd.
standards, the income tax expenses are directly reduced which are recognized as deferred income related to assets
by the international accounting standards. According to the regulations of the international accounting standards,
this difference is amortized over the fixed using periods of year of the fixed assets and adjusting net income and
net assets.
III. Items and amounts of extraordinary gains and losses
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item 2014 2013 2012 Note
Gains/losses on the disposal of non-current assets (including the
-3,316,012.55 432,380.47 -2,427,861.48
offset part of the asset impairment provisions)
Government grants recognized in the current period, except for
those acquired in the ordinary course of business or granted at
99,126,878.52 51,990,074.84 26,423,520.84
certain quotas or amounts according to the government‘s unified
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 assets and tradable
-5,319,435.30 33,746,810.30 18,052,349.49
financial liabilities and financial assets available for sales except
for effective hedging related with normal businesses of the
Company
Non-operating income and expense other than the above 21,173,199.30 1,991,154.72 6,442,815.14
Less: Income tax effects