2015 Semi-annual Report of Luthai Textile Co., Ltd.
LUTHAI TEXTILE CO., LTD.
2015 SEMI- ANNUAL REPORT
August 2015
2015 Semi-annual Report of Luthai Textile Co., Ltd.
Section I. Important Reminders, Contents & Definitions
The Board of Directors, the Supervisory Committee, directors, supervisors and senior management
staff of Luthai Textile Co., Ltd. (hereinafter referred to as ―the Company‖) warrant that this report
does not contain any false record or misleading statement or omit any material fact and shall hereby
accept, individually and collectively, responsibility for the factuality, accuracy and completeness of
the contents carried in this report.
All directors have attended in person the board session for reviewing this report.
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve 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.
2015 Semi-annual Report of Luthai Textile Co., Ltd.
Contents
Section I. Important Reminders, Contents & Definitions ........................................................................................................................2
Section II. Company Profile ....................................................................................................................................................................5
Section III. Highlights of Accounting Data & Financial Indicators .........................................................................................................7
Section IV. Report of the Board of Directors .........................................................................................................................................10
Section V. Significant Events.................................................................................................................................................................22
Section VI. Changes in Shares & Particulars about Shareholders .........................................................................................................29
Section VII. Preference Shares ..............................................................................................................................................................33
Section VIII. Directors, Supervisors & Senior Management Staff ........................................................................................................34
Section IX. Financial Report .................................................................................................................................................................37
Section X. Documents Available for Reference ...................................................................................................................................146
2015 Semi-annual Report of Luthai Textile Co., Ltd.
Definitions
Refers
Short form Definition
to
Refers
Issuer, Company, the Company Luthai Textile Co., Ltd.
to
Refers
The Board of Directors The Board of Directors of Luthai Textile Co., Ltd.
to
Refers
The Supervisory Committee The Supervisory Committee of Luthai Textile Co., Ltd.
to
Refers
CSRC China Securities Regulation Commission
to
Refers
Yuan, Ten thousand RMB Yuan, RMB Ten thousand
to
Refers
The ―Company Law‖ The ―Company Law of the People’s Republic of China‖
to
Refers
The ―Securities Law‖ The ―Securities Law of the People’s Republic of China‖
to
Refers
Reporting period 1 Jan. 2015-30 Jun. 2015
to
2015 Semi-annual Report of Luthai Textile Co., Ltd.
Section II. Company Profile
I. Basic information of the Company
Stock abbreviation LTA, LTB Stock code 000726, 200726
Stock abbreviation after
N/A
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 (if any)
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
II. Contact information
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
E-mail qinguiling@lttc.com.cn wyzheng@lttc.com.cn
III. Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email address of the
Company during the reporting period?
□ Applicable √ Inapplicable
The registered address, office address and their postal codes, website address and email address of the Company did not change
during the reporting period. The said information can be found in the 2014 Annual Report.
2015 Semi-annual Report of Luthai Textile Co., Ltd.
2. About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Inapplicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing this report
and the location where this report is placed did not change during the reporting period. The said information can be found in the 2014
Annual Report.
3. Changes in the registered information
Did any change occur to the registered information during the reporting period?
√ Applicable □ Inapplicable
Registration code of Organizatio
Registration date Registration place Business license No.
taxation nal code
Zibo Municipal
At the beginning of the
13 November 2014 Administration Bureau for 370300400002843 370302613281175 61328117-5
reporting period
Industry and Commerce
Zibo Municipal
At the end of the reporting
14 April 2015 Administration Bureau for 370300400002843 370302613281175 61328117-5
period
Industry and Commerce
Date when the relevant
announcement was
disclosed on the
designated website (if
any)
Website link for the
relevant announcement
disclosed on the None
designated website (if
any)
2015 Semi-annual Report of Luthai Textile Co., Ltd.
Section III. Highlights of Accounting Data & Financial Indicators
I. Major accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years due to change of any accounting policy or
correction of any accounting error?
□ Yes √ No
Reporting period Same period of last year YoY +/- (%)
Operating revenues (RMB Yuan) 2,941,835,897.16 3,114,226,581.62 -5.54%
Net profit attributable to shareholders of
344,521,516.72 476,880,256.93 -27.76%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains and 308,604,457.41 475,996,558.52 -35.17%
losses (RMB Yuan)
Net cash flows from operating activities
362,304,624.13 399,042,563.87 -9.21%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.36 0.50 -28.00%
Diluted EPS (RMB Yuan/share) 0.36 0.50 -28.00%
Weighted average ROE (%) 5.10% 7.81% -2.71%
As at the end of the
As at the end of last year +/- (%)
reporting period
Total assets (RMB Yuan) 8,585,633,117.13 8,627,671,393.88 -0.49%
Net assets attributable to shareholders of
6,456,030,484.38 6,588,772,245.55 -2.01%
the Company (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 Net assets attributable to shareholders of
of the Company the Company
Same period of
Reporting period Closing amount Opening amount
last year
According to Chinese accounting standards 344,521,516.72 476,880,256.93 6,456,030,484.38 6,588,772,245.55
Items and amounts adjusted according to international accounting standards
2015 Semi-annual Report of Luthai Textile Co., Ltd.
Impact on domestic equipments tax credit
recognized as deferred income under international 612,500.00 754,500.00 -1,456,500.00 -2,069,000.00
accounting standards
According to international accounting standards 345,134,016.72 477,634,756.93 6,454,573,984.38 6,586,703,245.55
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √ Inapplicable
No such cases for the reporting 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 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
Explanati
Item Amount
on
Gain/loss on the disposal of non-current assets (including the offset part of the asset impairment
-2,698,435.96
provisions)
Government grants recognized in the current period, except for those acquired in the ordinary course of
7,116,087.94
business or granted at certain quotas or amounts according to the country’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 financial liabilities
41,107,265.88
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 1,457,728.67
Less: income tax effects 10,018,509.04
Minority interests effects (after tax) 1,047,078.18
Total 35,917,059.31 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and
2015 Semi-annual Report of Luthai Textile Co., Ltd.
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
No such cases in the reporting period.
2015 Semi-annual Report of Luthai Textile Co., Ltd.
Section IV. Report of the Board of Directors
I. Overview
In the first half of 2015, most textile enterprises operated steadily, but the environment for the industry was still harsh with a
decreased export volume of textiles and garments, a weak domestic demand and rising costs of production factors. All these together
with the depreciation in foreign currencies such as the Yen and the Euro created various unfavorable impacts on export-oriented
textile enterprises. Under the circumstances, we continued to deepen our excellent performance management model, vigorously
promoted our Lu Thai Production System (LTPS), proactively carried forward our global planning, accelerated the industrial and
informatization fusion, and enhanced corporate culture improvement. As a result, despite a drop in our operating results for the first
half of the year, we managed to maintain a healthy and steady development trend.
For the reporting period, the Company achieved operating revenues of RMB 2.942 billion, operating profit of RMB 407 million, net
profit attributable to common share holders of RMB 345 million and net profit attributable to shareholders of the Company of RMB
309 million after deducting extraordinary gains and losses, down 5.54%, 26.38%, 27.76% and 35.17% respectively from the same
period of last year.
During the reporting period, there were no change in the main business of the Company, main profit source and composition.
Within the reporting period, the Company gave to full play of its technical accumulation and brand advantage in yarn dyeing sector,
integrated advantageous resources from home and abroad highly efficiently, circumvented potential trade barriers effectively,
improved its global production scale and maintained its leading position in global yarn dyeing sector. The Company decided to
establish Lutai (Vietnam) Co., Ltd, with its planned production scale of 60,000 spindles of spun yarn and 30 million meters of
yarn-dyed fabric, and the project has entered the process of basic construction currently.
Within the reporting period, the Company was appraised as a Pilot Enterprise for Informatization Renovation and Improvement in
Textile Industry by China National Textile and Apparel Council and Information Promotion Division of the Ministry of Industry and
Information Technology respectively. It was awarded as a Five-star Enterprise for Performing Social Responsibilities of Chinese
Industrial Enterprises at the Press Conference of 2015 E
