Lu Thai Textile Co., Ltd. Third Quarter Report 2019 LU THAI TEXTILE CO., LTD.
THIRD QUARTER REPORT 2019
October 2019
Lu Thai Textile Co., Ltd. Third Quarter Report 2019 Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of Lu Thai Textile Co., Ltd. (together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein.
All theCompany’s directors have attended the Board meeting for the review of this Report and its summary.
Liu Zibin, theCompany’s legal representative, Zhang Hongmei, theCompany’s Chief Accountant, and Zhang Keming, theCompany’s Financial Manager hereby guarantee that the 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 there be any discrepancies or misunderstandings between the two versions, the Chinese versions shall prevail.
Lu Thai Textile Co., Ltd. Third Quarter Report 2019 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
||||||
|-|-|-|-|-|
||30 September 2019|31 December 2018|Change (%)||
|Total assets (RMB)|11,348,273,338.95|10,537,759,811.84|7.69%||
|Equity attributable to the listed company’s|7,351,503,162.46|7,146,548,467.86|||
||||2.87%||
|shareholders (RMB)|||||
||Q3 2019|YoY change (%)|Q1-Q3 2019|YoY change (%)|
|Operating revenue (RMB)|1,626,165,317.03|-6.71%|4,811,613,661.04|-4.22%|
|Net profit attributable to the listed company’s|176,453,154.53||587,899,371.12||
|||-15.79%||0.17%|
|shareholders (RMB)|||||
|Net profit attributable to the listed company’s|||||
||172,442,753.62|-23.06%|549,259,289.55|-6.99%|
|shareholders before exceptional items (RMB)|||||
|Net cash generated from/used in operating activities|||481,803,616.13||
||--|--||-57.10%|
|(RMB)|||||
|Basic earnings per share (RMB/share)|0.20|-13.04%|0.68|6.25%|
|Diluted earnings per share (RMB/share)|0.20|-13.04%|0.68|6.25%|
|Weighted average return on equity (%)|2.44%|-0.51%|8.14%|0.06%|

 Exceptional gains and losses:
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|Q1-Q3 2019|Note|
|Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs)|-510,901.65||
|Government subsidies charged to current profit or loss (exclusive of government subsidies|||
|given in the Company’s ordinary course of business at fixed quotas or amounts as per|35,960,594.57||
|government’s uniform standards)|||
|Gain/Loss on changes in fair value arising from holding of trading financial assets and|||
|liabilities, derivative financial assets and liabilities and investment income from disposal of|||
|trading financial assets and liabilities, derivative financial assets and liabilities and other|19,090,653.31||
|investments in debt obligation other than effective hedge business related to the Company’s|||
|normal operating businesses|||
|Non-operating income and expense other than above|-5,090,217.43||
|Less: Income tax effects|7,880,401.60||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
||||
|-|-|-|
|Non-controlling interests effects (net of tax)|2,929,645.63||
|Total|38,640,081.57|--|

 Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
□ Applicable√ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2019 1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders
Unit: share
||||||||
|-|-|-|-|-|-|-|
|||Number of preferred shareholders with resumed|||||
|Number of ordinary shareholders|56,184||||0||
|||voting rights (if any)|||||
|Top 10 shareholders|||||||
||||||Shares in pledge or||
|||Shareholdin||Restricted|||
|Name of shareholder|Nature of shareholder||Number of shares||frozen||
|||g percentage||shares|||
||||||Status|Shares|
|Zibo Lucheng Textile Investment Co.,Ltd.|Domesticnon-state-owned legalperson|16.36%|140,353,583||||
|Tailun (Thailand) Textile Co., Ltd.|Foreign legal person|13.78%|118,232,400|118,232,400|||
|Hong Kong Securities Clearing Co. Ltd|Foreign legal person|3.03%|25,984,811||||
|Central Huijin Assets Management Co.,Ltd.|State-owned legalperson|2.37%|20,315,300||||
|T.ROWE PRICE INTL DISCOVERYFUND|Foreign legal person|2.32%|19,948,219||||
|China Securities Finance CorporationLimited|Domesticnon-state-owned legalperson|2.13%|18,313,391||||
|Hong Kong MonetaryAuthority-Self-owned Fund|Foreign legal person|2.04%|17,487,884||||
|National Social Security Fund Portfolio103|Other|1.40%|11,999,897||||
|National Social Security FundPortfolio 413|Other|0.95%|8,190,051||||
|ASSICURAZIONI|Other|0.76%|6,558,889||||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
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|-|-|-|-|
|GENERALI-DIVIDEND 2||||
|Top 10 unrestricted shareholders||||
||Unrestricted|Shares by type||
|Name of shareholder||||
||shares|Type|Shares|
|Zibo Lucheng Textile Investment Co., Ltd.|140,353,583|RMB-denominated ordinary stock|140,353,583|
|Hong Kong Securities Clearing Co. Ltd|25,984,811|RMB-denominated ordinary stock|25,984,811|
|Central Huijin Assets Management Co., Ltd.|20,315,300|RMB-denominated ordinary 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-denominated ordinary stock|18,313,391|
|Hong Kong Monetary Authority-Self-owned Fund|17,487,884|RMB-denominated ordinary stock|17,487,884|
|National Social Security Fund Portfolio 103|11,999,897|RMB-denominated ordinary stock|11,999,897|
|National Social Security Fund Portfolio 413|8,190,051|RMB-denominated ordinary stock|8,190,051|
|ASSICURAZIONI GENERALI-DIVIDEND 2|6,558,889|RMB-denominated ordinary stock|6,558,889|
|RBC EMERGING MARKETS SMALL CAP EQUITY FUND|6,181,462|Domestically listed foreign stock|6,181,462|
||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|||
|Related or acting-in-concert parties among shareholders above||||
||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.|||
|Top 10 ordinary shareholders involved in securities margin||||
||Naught|||
|trading (if any)||||

Indicate 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.
□ Yes√ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable√ Not applicable
Lu Thai Textile Co., Ltd. Third Quarter Report 2019 Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
|Item|30 September2019|31 December2018|Change|Reason for change||
|Prepayments|196,906,160.26|149,582,616.21|31.64%|Increase in prepayments for agricultural meansof production in the Reporting Period||
|Current portion ofnon-current assets|52,256,130.79|-|100.00%|Purchase of trust financial products in theReporting Period||
|Investment property|38,266,359.35|22,880,242.95|67.25%|Transfer of operating leased houses intoinvestment property in the Reporting Period||
|Construction inprogress|502,791,371.42|337,230,646.42|49.09%||Increase in inputs in Yarn Dye II Project of Lu|
||||||Thai (Vietnam) and equipment|
|Short-term borrowings|2,117,741,665.40|1,325,273,780.05|59.80%|Increase in borrowings from banks in theReporting Period||
|Notes payable|22,125,109.37|502,347.05|4304.35%|Increase in bank’s acceptance bills opened forpayments of materials in the Reporting Period||
|Accounts payable|229,909,541.78|353,186,163.90|-34.90%|Payments for raw materials and equipment in theReporting Period||
|Current portion ofnon-current liabilities|111,331,864.72|-|100.00%|Increase in current portion of long-termborrowings||
|Long-term borrowings|18,961,030.32|170,019,083.89|-88.85%|Reclassification of current portion of long-termborrowings into current portion of non-currentliabilities||
|Capital reserve|256,632,428.28|699,493,647.48|-63.31%|Capital stock premium from repurchasedB-shares cancelled in the Reporting Period||
|Treasury stock|-|486,922,944.94|-100.00%|Cancellation of repurchased B-shares in theReporting Period||
|Other comprehensiveincome|111,894,866.80|61,157,013.37|82.96%|Increase in differences arising from thetranslation of foreign currency-denominatedfinancial statements in the Reporting Period||
|Item|Q1~Q3 2019|Q1~Q3 2018|Change|Reason for change||
|Finance cost|61,156,464.30|37,733,821.10|62.07%|Increase in interest expense in the ReportingPeriod||
|Investment income|16,777,341.81|-18,388,041.25|191.24%|Increase in income from investments in||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019 derivative financial instruments and associated enterprises in the Reporting Period
||||||
|-|-|-|-|-|
|Gain on changes in fairvalue|5,638,067.04|-44,112,150.00|112.78%|Losses on changes in fair value offails-to-delivery derivative financial instrumentsof the same period of last year|
|Asset disposal income|162,416.20|23,233,253.44|-99.30%|Recognition of disposal income from demolitionby Xinjiang Lu Thai in the same period of lastyear|
|Non-operating expense|9,785,667.21|3,623,862.73|170.03%|Payments for relief donations in the ReportingPeriod|
|Net cash generatedfrom/used in operatingactivities|481,803,616.13|1,123,152,616.75|-57.10%|Increase in net cash outflow in relation tooperating activities: 1. YoY increase of RMB331million in cash paid for purchase of commoditiesand acceptance of labor services, which drivenby increase in payments for cotton; 2. YoYdecrease of RMB222 million in cash receivedfrom sales of commodities and providing of laborservices, which driven by decline in sales ofproducts|
|Net cash generatedfrom/used in financingactivities|212,302,378.28|-288,801,161.03|173.51%|YoY decrease in payments for B-sharerepurchase and YoY increase in cash receivedfrom obtaining borrowings in the ReportingPeriod|

II Progress, Influence and Solutions with regard to Significant Events
√ Applicable□ Not applicable
The 28th Meeting of the 8th Board of Directors reviewed and approved ten proposals on 23 May 2019, including the Proposal of Meeting the Conditions for Public Issuance of A-share Convertible Corporate Bonds, the Proposal of Plan on Public Issuance of A-share Convertible Corporate Bonds and the Proposal of Preplan on Public Issuance of A-share Convertible Corporate Bonds. For details, please refer to the announcement (announcement No.: 2019-039) disclosed on www.cninfo.com.cn on 24 May 2019. The 3rd Extraordinary General Meeting of 2019 reviewed and approved ten proposals on 16 September 2019, including the Proposal of Meeting the Conditions for Public Issuance of A-share Convertible Corporate Bonds, the Proposal of Plan on Public Issuance of A-share Convertible Corporate Bonds, the Proposal of Preplan on Public Issuance of A-share Convertible Corporate Bonds and the Proposal of Change in Audit Institution. For details, please refer to the announcement (announcement No.: 2019-059) disclosed on www.cninfo.com.cn on 17 September 2019. The Company received the Acceptance Form on Application for CSRC Administrative License issued by CSRC (No. 192620) on 15 October 2019. For details, please refer to the relevant announcement (announcement No.: 2019-064) disclosed on www.cninfo.com.cn on 16 October 2019.
||||
|-|-|-|
|Overview of significant events|Disclosure date|Announcement index|
|The progress of relevant matters for publicissuance of A-share Convertible Corporate|24 May 2019|Announcements on www.cninfo.com.cn|
||17 September 2019|Announcements on www.cninfo.com.cn|

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
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|-|-|-|
|Bonds|15 October 2019|Announcements on www.cninfo.com.cn|

Progress of any share repurchase:
□ Applicable√ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable√ Not applicable
III Commitments that theCompany’s Actual Controller, Shareholders, Related Parties, Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the Reporting Period
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IV Securities Investments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
V Wealth Management Entrustment
√ Applicable□ Not applicable
Unit: RMB'0,000
||||||
|-|-|-|-|-|
|Type of wealth|||Outstanding amountbefore maturity||
||Funding source|Principal||Overdue amount|
|management|||||
|Other|Self-funded|0|3,000|0|
|Trust finance products|Self-funded|5,000|5,000|0|
|Total||5,000|8,000|0|

 High-risk wealth management entrustments with amounts that are individually significant, or with low security, low liquidity, or no protection of the principal:
√ Applicable□ Not applicable
Unit:RMB’0,000
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Collecti||Throu||Overvie|
||||||||||Refere||Actual||||||
|||Type of|||||Invest|||Expect||on/paym|Impair|gh|Any|w and|
||||||||||nce||gain/lo||||||
|||wealth||Fundin|||ment|||ed||ent of|ment|prescri|plan for|index to|
||Type of||Princi||Start|End||Way of|annual||ss in||||||
|Trustee||manage||g|||with|||return||gain/loss|allowa|bed|further|more|
||trustee||pal||date|date||payback|ized||Report||||||
|||ment||source|||princi|||(if||in|nce (if|proced|entrustm|informat|
||||||||||return||ing||||||
|||product|||||pal|||any)||Reportin|any)|ure or|ent|ion (if|
||||||||||(%)||Period||||||
|||||||||||||g Period||not||any)|
|Gopher|Fund||||22|26|Granti|Annual|||||||||
|||Fixed-in||Self-fu|||||||||||Tempora||
|Asset|corporati||3,000||Dece|Dece|ng of|payment|8.50%|255|250.32|N/A||Yes|||
|||come||nded|||||||||||rily no||
|Managemen|on||||mber|mber|trust|of|||||||||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
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|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|t Co., Ltd|||||2017|2019|loans|interests||||||||
||||||||to|and||||||||
||||||||HOM|payment||||||||
||||||||E|of||||||||
||||||||CRED|principal||||||||
||||||||IT|upon||||||||
|||||||||maturity||||||||
|||||||||Payment||||||||
|||||||||of||||||||
||||||||Invest|||||||||
||Trust||||7|9||principal||||||||
|Avic trust||Fixed-in||Self-funded|||ment|||||||Tempora||
||compan||5,000||March|March||and|8.00%|400|0|N/A|Yes|||
|co. LTD||come|||||trust|||||||rily no||
||y||||2019|2020||interest||||||||
||||||||assets|||||||||
|||||||||upon||||||||
|||||||||maturity||||||||
|Total|||8,000|--|--|--|--|--|--|655|250.32|--|--|--|--|

 Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable√ Not applicable
VI Investments in Derivative Financial Instruments
√ Applicable□ Not applicable
Unit:RMB’0,000
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Ending||
|||Relate||||||||||||
||Relation|||||||||Impair||investment|Actual|
|||d-part|Type|||||||||||
||ship|||Initial||||Purchased in|Sold in|ment|Ending|as % of|gain/loss|
|Counterpa||y|of||Start||Beginning|||||||
||with the|||investment||End date||Reporting|Reporting|allowa|investme|the|in|
|rty||transac|derivat||date||investment|||||||
||Compan|||amount||||Period|Period|nce (if|nt|Company’|Reporting|
|||tion or|ive|||||||||||
||y|||||||||any)||s ending|Period|
|||not||||||||||||
|||||||||||||net assets||
||||Forwa|||||||||||
||||rd|||||||||||
|||||||11||||||||
|Commerci|Non-con||exchan||19 June|||||||||
|||No||98,187.76||November|6,512.05|91,675.71|93,944.02||4,243.74|0.53%|776.34|
|al bank|nected||ge||2018|||||||||
|||||||2019||||||||
||||settle|||||||||||
||||ment|||||||||||
||||Foreig|||||||||||
||||n||23|||||||||
|Commerci|Non-con|||||30 August||||||||
|||No|exchan|16,018.76|March||1,909.89|14,108.87|16,018.76||0||40.15|
|al bank|nected|||||2019||||||||
||||ge||2018|||||||||
||||option|||||||||||
|Commerci|Non-con||Forwa||28|10 May||||||||
|||No||3,049.7|||1,610.11|1,439.59|3,049.7||0||50.04|
|al bank|nected||rd||Septemb|2019||||||||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
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|-|-|-|-|-|-|-|-|-|-|-|
||exchan||er 2018||||||||
||ge||||||||||
||transac||||||||||
||tions||||||||||
|Total||117,256.22|--|--|10,032.05|107,224.17|113,012.48|4,243.74|0.53%|866.53|
|Funding source|||Self-funded||||||||
|Legal matters involved (if applicable)|||N/A||||||||
|Disclosure date of board of directors|||27 April 2018||||||||
|announcement on approval of derivative|||||||||||
||||30 April 2019||||||||
|investment (if any)|||||||||||
|Disclosure date of general meeting of|||||||||||
|shareholders announcement on approval of|||||||||||
|derivative investment (if any)|||||||||||
||||The Company conducted derivatives products transaction in order for hedging. And the forward||||||||
||||settlement hedging was operated by installments, with the relevant amount not more than the planned||||||||
||||derivatives products transactions. And all derivatives products transaction was zero-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. Market risk: when the international and domestic economic situations change, the corresponding||||||||
||||changes in exchange rates and interest rates may have an adverse impact on the financial derivatives||||||||
||||transactions of the Company. Precautionary measures to be taken include: the Company chooses||||||||
||||risk-controlled financial derivative tools with simple structure and good liquidity to carry out the||||||||
||||hedging business, strictly controls the scale of financial derivatives trading by staged operations, and||||||||
||||adjusts the strategy according to market changes in a timely manner.||||||||
|Analysis of risks and control measures associated|||2. Liquidity risk and credit risk: a credit risk arising from failure of the contractually due Company||||||||
|with derivative investments held in Reporting|||or counterparty in performing the contract due to liquidity or factors other than liquidity.||||||||
|Period (including but not limited to market risk,|||Precautionary measures to be taken include: the Company determines the upper limit of derivatives||||||||
|liquidity risk, credit risk, operational risk, legal|||transaction amounts according to production and operation scale as well as foreign exchange income,||||||||
|risk, etc.)|||and conducts operations by stage according to the budget of future collections and disbursement. The||||||||
||||derivative trades 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 due to lack of liquidity. The Company selects financial institutions with strong||||||||
||||capability and good reputation as a counterparty and signs standard derivative trading contracts to||||||||
||||strictly control credit risk of the counterparty.||||||||
||||3. Operation risk:||||||||
||||The derivatives had high specialty and complexity, so imperfect internal operation procedures, staffs||||||||
||||and external events would make the Company to undertake risks during the transaction. Risk control||||||||
||||measures: The Company promulgated strict authorization and approval system and perfect regulatory||||||||
||||mechanism, fixed the operation procedures and approval procedures system to conduct derivative||||||||
||||products transaction, implemented strict authorization and post checks and balances system,||||||||
||||meanwhile, it improved the overall quality of relevant personnel through strengthening the||||||||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
|||
|-|-|
||professional ethics education and business training for them. Besides, it established the System of|
||Reporting the Abnormal Situation Timely so as to ensure to lower the operation risks to the|
||maximum.|
||4. Risk of laws and regulation:|
||The Company conducted derivatives products transaction in strict accordance with relevant laws and|
||rules. If there were no standard operation procedures and strict approval procedures, it was easy to|
||cause compliant and regulatory risks existing in the validity and feasibility of contract, commitments|
||and other legal documents signed. Risk control measures: The Company carefully studied and|
||mastered laws, regulations and policies relevant to derivative products transaction, formulated|
||internal control rules for the forward settlement hedging business, standardized the operation|
||procedures. And strengthened the compliant examination on derivative products transaction business.|
||The Company conducted derivative transaction business according to the relevant approval|
||procedure, which was in line with relevant laws, regulations, the Company’s Articles of Association,|
||the Management Rules 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 17th Meeting of the|
||8th Board of Directors on 25 April 2018 and the 26th Meeting of the 8th Board of Directors on 29|
||April 2019, and performed relevant information disclosure responsibilities.|
||1. As of 30 September 2019, the Company held financial derivative worth USD6 million in totals,|
||which was forward settlement of exchange executed in accordance with the contracts. The latest|
||contract expiration date was 11 November 2019. Financial derivatives occupied 0.53 % of the net|
||assets as at the period end.|
|Changes in market prices or fair value of||
||2. In Q1~Q3 2019, the amount of maturing financial derivatives of the Company amounted to|
|derivative investments in Reporting Period (fair||
||USD165.0969 million which was executed as per the contract in full, which generated an income of|
|value analysis should include measurement||
||RMB8.6653 million. The delivery amount of forward settlement of exchange amounted to|
|method and related assumptions and parameters)||
||USD137.1132 million which generated an income of RMB7.7634 million; the delivery amount of|
||foreign exchange options was USD23.5 million which generated an income of RMB0.4015 million.|
||The delivery amount of foreign exchange transaction amounted to USD4.4837 million which|
||generated an income of RMB0.5004 million.|
|Major changes in accounting policies and specific||
|accounting principles adopted for derivative||
||No significant changes|
|investments in Reporting Period compared to last||
|reporting period||
||The Company’s independent directors Zhou Zhiji, Bi Xiuli, Pan Ailing, Wang Xinyu and Qu|
||Dongmei concerning conducting derivatives business, have issued the following professional advice:|
||We are of 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|
|Opinion of independent directors on derivative||
||exchange risks, to strengthen the relevant internal control and to carry out the loss and risk|
|investments and risk control||
||prevention measures so as to improve the operation and management. In conducting derivative|
||transactions with focus on forward settlement and purchase, the Company follows a legal approval|
||procedure, has sound relevant institutions and keeps the risks relatively controllable. No harm has|
||been done to the interests of the Company’s shareholders.|

Lu Thai Textile Co., Ltd. Third Quarter Report 2019 VII Communications with the Investment Community such as Researches, Inquiries and Interviews during the Reporting Period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|||Type of communication|Index to main information|
|Date|Way of communication|||
|||party|communicated|
|29 March 2019|By phone|Individual|Basic information of the Company|

 VIII Irregularities in the Provision of Guarantees
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s Capital by the Controlling Shareholder or Its Related Parties for Non-Operating Purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Lu Thai Textile Co., Ltd. Third Quarter Report 2019 Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Lu Thai Textile Co., Ltd.
30 September 2019
Unit: RMB
||||
|-|-|-|
|Item|30 September 2019|31 December 2018|
|Current assets:|||
|Monetary capital|683,353,628.74|545,502,709.36|
|Trading financial assets|31,501,467.04||
|Financial assets at fair value through profit or loss|||
|Derivative financial assets|||
|Notes receivable|129,159,118.93|174,657,918.26|
|Accounts receivable|379,514,852.15|374,607,116.55|
|Accounts receivable financing|||
|Prepayments|196,906,160.26|149,582,616.21|
|Other receivables|73,542,617.81|63,012,001.10|
|Including: Interest receivable|2,365,415.76||
|Dividends receivable|||
|Financial assets purchased under resale agreements|||
|Inventories|2,449,924,067.98|2,093,366,992.30|
|Contractual assets|||
|Assets classified as held for sale|||
|Current portion of non-current assets|52,256,130.79||
|Other current assets|72,598,373.59|86,366,454.56|
|Total current assets|4,068,756,417.29|3,487,095,808.34|
|Non-current assets:|||
|Investments in debt obligations|||
|Available-for-sale financial assets||85,112,000.00|
|Investments in other debt obligations|||
|Held-to-maturity investments|||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
||||
|-|-|-|
|Long-term receivables|8,818,242.91|10,693,844.75|
|Long-term equity investments|98,925,703.04|96,018,463.65|
|Investments in other equity instruments|12,000,000.00||
|Other non-current financial assets|31,018,515.95||
|Investment property|38,266,359.35|22,880,242.95|
|Fixed assets|5,771,423,930.07|5,748,562,385.35|
|Construction in progress|502,791,371.42|337,230,646.42|
|Intangible assets|528,724,915.77|478,689,064.45|
|Goodwill|20,563,803.29|20,613,803.29|
|Long-term prepaid expense|150,370,671.30|119,126,407.71|
|Deferred income tax assets|80,480,242.51|88,636,929.06|
|Other non-current assets|36,133,166.05|43,100,215.87|
|Total non-current assets|7,279,516,921.66|7,050,664,003.50|
|Total assets|11,348,273,338.95|10,537,759,811.84|
|Current liabilities:|||
|Short-term borrowings|2,117,741,665.40|1,325,273,780.05|
|Trading financial liabilities|||
|Financial liabilities at fair value through profit or loss||4,877,600.00|
|Derivative financial liabilities|||
|Notes payable|22,125,109.37|502,347.05|
|Accounts payable|229,909,541.78|353,186,163.90|
|Advances from customers|104,448,976.14|105,562,378.66|
|Contractual liabilities|||
|Payroll payable|298,573,258.40|325,998,210.17|
|Taxes payable|38,820,588.53|43,556,823.75|
|Other payables|216,327,314.09|215,946,987.68|
|Including: Interest payable|7,318,446.67|3,068,841.54|
|Dividends payable|441,113.64|441,113.64|
|Liabilities directly associated with assets classified as held for sale|||
|Current portion of non-current liabilities|111,331,864.72||
|Other current liabilities|||
|Total current liabilities|3,139,278,318.43|2,374,904,291.26|
|Non-current liabilities:|||
|Long-term borrowings|18,961,030.32|170,019,083.89|

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
||||
|-|-|-|
|Long-term payables|||
|Long-term payroll payable|86,420,799.53|96,958,178.53|
|Provisions|||
|Deferred income|139,134,413.73|140,183,446.39|
|Deferred income tax liabilities|27,874,484.06|28,030,096.38|
|Other non-current liabilities|1,840,000.00|1,840,000.00|
|Total non-current liabilities|274,230,727.64|437,030,805.19|
|Total liabilities|3,413,509,046.07|2,811,935,096.45|
|Owners’ equity:|||
|Share capital|858,121,541.00|922,602,311.00|
|Capital reserve|256,632,428.28|699,493,647.48|
|Less: Treasury stock||486,922,944.94|
|Other comprehensive income|111,894,866.80|61,157,013.37|
|Surplus reserves|1,022,717,451.40|1,022,717,451.40|
|Retained earnings|5,102,136,874.98|4,927,500,989.55|
|Total equity attributable to owners of the Company as the parent|7,351,503,162.46|7,146,548,467.86|
|Non-controlling interests|583,261,130.42|579,276,247.53|
|Total owners’ equity|7,934,764,292.88|7,725,824,715.39|
|Total liabilities and owners’ equity|11,348,273,338.95|10,537,759,811.84|

 Legal representative: Liu Zibin TheCompany’s chief accountant: Zhang Hongmei TheCompany’s financial manager: Zhang Keming
2. Balance Sheet of the Company as the Parent
Unit: RMB
||||
|-|-|-|
|Item|30 September 2019|31 December 2018|
|Current assets:|||
|Monetary capital|146,337,238.24|191,305,104.80|
|Trading financial assets|31,350,000.00||
|Financial assets at fair value through profit or loss|||
|Derivative financial assets|||
|Notes receivable|47,978,730.62|91,555,248.34|
|Accounts receivable|350,747,701.24|316,225,973.28|
|Accounts receivable financing|||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
||||
|-|-|-|
|Prepayments|108,525,969.43|115,020,260.51|
|Other receivables|613,846,460.12|395,847,213.77|
|Including: Interest receivable|||
|Dividends receivable|||
|Inventories|1,432,477,318.67|1,040,433,078.53|
|Contractual assets|||
|Assets classified as held for sale|||
|Current portion of non-current assets|52,256,130.79||
|Other current assets|848,975.15|12,671,631.64|
|Total current assets|2,784,368,524.26|2,163,058,510.87|
|Non-current assets:|||
|Investments in debt obligations|||
|Available-for-sale financial assets||73,112,000.00|
|Investments in other debt obligations|||
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|2,521,541,019.08|2,165,711,579.69|
|Investments in other equity instruments|||
|Other non-current financial assets|31,018,515.95||
|Investment property|31,428,015.67|14,804,592.72|
|Fixed assets|2,668,052,628.86|2,731,726,695.28|
|Construction in progress|59,479,055.48|61,182,771.86|
|Intangible assets|237,399,361.88|242,204,032.54|
|Goodwill|||
|Long-term prepaid expense|||
|Deferred income tax assets|46,274,665.49|52,758,961.05|
|Other non-current assets|2,819,450.02|6,047,443.10|
|Total non-current assets|5,598,012,712.43|5,347,548,076.24|
|Total assets|8,382,381,236.69|7,510,606,587.11|
|Current liabilities:|||
|Short-term borrowings|928,629,284.35|622,604,447.52|
|Trading financial liabilities|||
|Financial liabilities at fair value through profit or loss||4,877,600.00|
|Derivative financial liabilities|||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
||||
|-|-|-|
|Notes payable|420,035,914.66|120,000.00|
|Accounts payable|158,548,287.20|120,021,727.66|
|Advances from customers|60,609,258.23|49,798,551.14|
|Contractual liabilities|||
|Payroll payable|222,245,639.71|240,090,943.88|
|Taxes payable|28,318,102.82|30,914,089.32|
|Other payables|280,561,093.63|303,672,590.72|
|Including: Interest payable|6,170,923.39|2,475,549.88|
|Dividends payable|441,113.64|441,113.64|
|Liabilities directly associated with assets classified as held for sale|||
|Current portion of non-current liabilities|||
|Other current liabilities|||
|Total current liabilities|2,098,947,580.60|1,372,099,950.24|
|Non-current liabilities:|||
|Long-term borrowings|||
|Long-term payables|||
|Long-term payroll payable|86,420,799.53|96,958,178.53|
|Provisions|||
|Deferred income|93,190,373.91|94,390,844.09|
|Deferred income tax liabilities|16,810,230.43|16,699,530.43|
|Other non-current liabilities|||
|Total non-current liabilities|196,421,403.87|208,048,553.05|
|Total liabilities|2,295,368,984.47|1,580,148,503.29|
|Owners’ equity:|||
|Share capital|858,121,541.00|922,602,311.00|
|Capital reserves|317,206,232.47|759,836,756.57|
|Less: Treasury stock||486,922,944.94|
|Other comprehensive income||520,200.00|
|Surplus reserves|1,019,608,711.76|1,019,608,711.76|
|Retained earnings|3,892,075,766.99|3,714,813,049.43|
|Total owners’ equity|6,087,012,252.22|5,930,458,083.82|
|Total liabilities and owners’ equity|8,382,381,236.69|7,510,606,587.11|

Lu Thai Textile Co., Ltd. Third Quarter Report 2019 3. Consolidated Income Statement for Q3
Unit: RMB
||||
|-|-|-|
|Item|Q3 2019|Q3 2018|
|1. Revenue|1,626,165,317.03|1,743,184,011.30|
|Including: Operating revenue|1,626,165,317.03|1,743,184,011.30|
|Interest income|||
|2. Costs and expenses|1,409,327,905.19|1,441,771,123.15|
|Including: Cost of sales|1,134,881,337.85|1,202,063,269.94|
|Interest expense|||
|Taxes and surcharges|19,277,202.31|25,517,190.09|
|Selling expense|39,940,915.79|36,889,477.84|
|Administrative expense|132,610,760.47|117,159,789.88|
|R&D expense|74,015,794.52|52,932,799.61|
|Finance costs|8,601,894.25|7,208,595.79|
|Including: Interest expense|19,779,508.78|16,558,359.20|
|Interest income|2,710,018.22|5,662,375.52|
|Add: Other income|3,734,368.66|9,124,879.25|
|Return on investment (“-” for loss)|6,359,866.40|-23,034,065.03|
|Including: Share of profit or loss of joint ventures and|||
||-1,712,208.40|-1,055,310.06|
|associates|||
|Derecognition income of financial assets measured at|||
|amortized cost|||
|Foreign exchange gain (“-” for loss)|||
|Net gain on exposure hedges (“-” for loss)|||
|Gain on changes in fair value (“-” for loss)|355,467.04|-15,631,140.00|
|Credit impairment loss (“-” for loss)|-486,217.28||
|Asset impairment loss (“-” for loss)|-6,458,082.21|-2,893,902.64|
|Asset disposal income (“-” for loss)|-351,073.80|23,755,540.09|
|3. Operating profit (“-” for loss)|219,991,740.65|292,734,199.82|
|Add: Non-operating income|971,245.09|2,673,434.80|
|Less: Non-operating expense|7,571,310.67|1,628,939.02|
|4. Profit before tax (“-” for loss)|213,391,675.07|293,778,695.60|
|Less: Income tax expense|29,571,059.77|44,321,359.81|
|5. Net profit (“-” for net loss)|183,820,615.30|249,457,335.79|

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
||||
|-|-|-|
|5.1 By operating continuity|||
|5.1.1 Net profit from continuing operations (“-” for net loss)|183,820,615.30|249,457,335.79|
|5.1.2 Net profit from discontinued operations (“-” for net loss)|||
|5.2 By ownership|||
|5.2.1 Net profit attributable to owners of the Company as the|||
||176,453,154.53|209,540,056.51|
|parent|||
|5.2.2 Net profit attributable to non-controlling interests|7,367,460.77|39,917,279.28|
|6. Other comprehensive income, net of tax|39,451,542.18|24,566,771.97|
|Attributable to owners of the Company as the parent|39,451,542.18|24,566,771.97|
|6.2 Items that will be reclassified to profit or loss|39,451,542.18|24,566,771.97|
|6.2.1 Other comprehensive income that will be reclassified to|||
|profit or loss under the equity method|||
|6.2.2 Changes in the fair value of investments in other debt|||
|obligations|||
|6.2.3 Gain/Loss on changes in the fair value of|||
|||-344,250.00|
|available-for-sale financial assets|||
|6.2.4 Other comprehensive income arising from the|||
|reclassification of financial assets|||
|6.2.5 Gain/Loss arising from the reclassification of|||
|held-to-maturity investments to available-for-sale financial assets|||
|6.2.6 Allowance for credit impairments in investments in|||
|other debt obligations|||
|6.2.7 Reserve for cash flow hedges|||
|6.2.8 Differences arising from the translation of foreign|||
||39,451,542.18|24,911,021.97|
|currency-denominated financial statements|||
|6.2.9 Other|||
|Attributable to non-controlling interests|||
|7. Total comprehensive income|223,272,157.48|274,024,107.76|
|Attributable to owners of the Company as the parent|215,904,696.71|234,106,828.48|
|Attributable to non-controlling interests|7,367,460.77|39,917,279.28|
|8. Earnings per share|||
|8.1 Basic earnings per share|0.20|0.23|
|8.2 Diluted earnings per share|0.20|0.23|

 Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Liu Zibin TheCompany’s chief accountant: Zhang Hongmei
TheCompany’s financial manager: Zhang Keming
Lu Thai Textile Co., Ltd. Third Quarter Report 2019 4. Income Statement of the Company as the Parent for Q3
Unit: RMB
||||
|-|-|-|
|Item|Q3 2019|Q3 2018|
|1. Operating revenue|1,228,054,030.71|1,311,467,279.35|
|Less: Cost of sales|915,369,284.69|969,922,821.85|
|Taxes and surcharges|12,937,532.49|17,215,045.88|
|Selling expense|22,518,421.20|20,317,829.54|
|Administrative expense|78,566,335.27|75,809,175.22|
|R&D expense|52,844,715.85|37,589,240.19|
|Finance costs|6,719,151.21|4,383,922.13|
|Including: Interest expense|7,263,684.00|5,775,599.84|
|Interest income|741,357.06|418,784.42|
|Add: Other income|4,331,634.30|4,231,549.46|
|Return on investment (“-” for loss)|23,766,350.02|-1,036,006.41|
|Including: Share of profit or loss of joint ventures and|||
||-1,712,208.40|-1,055,310.06|
|associates|||
|Derecognition income of financial assets measured at|||
|amortized cost|||
|Net gain on exposure hedges (“-” for loss)|||
|Gain on changes in fair value (“-” for loss)|204,000.00|-11,551,800.00|
|Credit impairment loss (“-” for loss)|-59,892.99||
|Asset impairment loss (“-” for loss)||-2,207,675.19|
|Asset disposal income (“-” for loss)|-287,498.05|-60,714.02|
|2. Operating profit (“-” for loss)|167,053,183.28|175,604,598.38|
|Add: Non-operating income|767,005.32|2,629,812.70|
|Less: Non-operating expense|5,622,462.22|1,220,654.32|
|3. Profit before tax (“-” for loss)|162,197,726.38|177,013,756.76|
|Less: Income tax expense|22,824,927.87|24,375,571.27|
|4. Net profit (“-” for net loss)|139,372,798.51|152,638,185.49|
|4.1 Net profit from continuing operations (“-” for net loss)|139,372,798.51|152,638,185.49|
|4.2 Net profit from discontinued operations (“-” for net loss)|||
|5. Other comprehensive income, net of tax||-344,250.00|
|5.2 Items that will be reclassified to profit or loss||-344,250.00|
|5.2.1 Other comprehensive income that will be reclassified to|||
|profit or loss under the equity method|||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
||||
|-|-|-|
|5.2.2 Changes in the fair value of investments in other debt|||
|obligations|||
|5.2.3 Gain/Loss on changes in the fair value of available-for-sale|||
|||-344,250.00|
|financial assets|||
|5.2.4 Other comprehensive income arising from the|||
|reclassification of financial assets|||
|5.2.5 Gain/Loss arising from the reclassification of|||
|held-to-maturity investments to available-for-sale financial assets|||
|5.2.6 Allowance for credit impairments in investments in other|||
|debt obligations|||
|5.2.7 Reserve for cash flow hedges|||
|5.2.8 Differences arising from the translation of foreign|||
|currency-denominated financial statements|||
|5.2.9 Other|||
|6. Total comprehensive income|139,372,798.51|152,293,935.49|
|7. Earnings per share|||
|7.1 Basic earnings per share|0.16|0.16|
|7.2 Diluted earnings per share|0.16|0.16|

 5. Consolidated Income Statement forQ1~Q3
Unit: RMB
||||
|-|-|-|
|Item|Q1~Q3 2019|Q1~Q3 2018|
|1. Revenue|4,811,613,661.04|5,023,591,787.12|
|Including: Operating revenue|4,811,613,661.04|5,023,591,787.12|
|Interest income|||
|2. Operating costs and expenses|4,146,487,815.45|4,280,415,032.81|
|Including: Cost of sales|3,345,768,293.38|3,562,899,701.35|
|Interest income|||
|Taxes and surcharges|62,014,007.08|79,987,597.97|
|Selling expense|117,777,858.73|103,830,566.40|
|Administrative expense|323,816,358.21|280,434,300.58|
|R&D expense|235,954,833.75|215,529,045.41|
|Finance costs|61,156,464.30|37,733,821.10|
|Including: Interest expense|67,095,974.54|39,093,671.25|
|Interest income|7,048,783.32|13,065,868.54|
|Add: Other income|35,960,594.57|46,267,401.20|
|Investment income (“-” for loss)|16,777,341.81|-18,388,041.25|

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
||||
|-|-|-|
|Including: Share of profit or loss of joint ventures and|||
||3,370,893.14|-2,785,907.65|
|associates|||
|Derecognition income of financial assets measured at|||
|amortized cost|||
|Foreign exchange gain (“-” for loss)|||
|Net gain on exposure hedges (“-” for loss)|||
|Gain on changes in fair value (“-” for loss)|5,638,067.04|-44,112,150.00|
|Credit impairment loss (“-” for loss)|-1,017,168.59||
|Asset impairment loss (“-” for loss)|-8,001,281.59|-5,015,397.48|
|Asset disposal income (“-” for loss)|162,416.20|23,233,253.44|
|3. Operating profit (“-” for loss)|714,645,815.03|745,161,820.22|
|Add: Non-operating income|4,068,269.53|5,680,589.63|
|Less: Non-operating expense|9,785,667.21|3,623,862.73|
|4. Profit before tax (“-” for loss)|708,928,417.35|747,218,547.12|
|Less: Income tax expense|104,410,292.06|107,596,874.38|
|5. Net profit (“-” for net loss)|604,518,125.29|639,621,672.74|
|5.1 By operating continuity|||
|5.1.1 Net profit from continuing operations (“-” for net loss)|604,518,125.29|639,621,672.74|
|5.1.2 Net profit from discontinued operations (“-” for net loss)|||
|5.2 By ownership|||
|5.2.1 Net profit attributable to owners of the Company as the|||
||587,899,371.12|586,896,015.53|
|parent|||
|5.2.2 Net profit attributable to non-controlling interests|16,618,754.17|52,725,657.21|
|6. Other comprehensive income, net of tax|51,258,053.43|52,126,425.89|
|Attributable to owners of the Company as the parent|51,258,053.43|52,126,425.89|
|6.2 Items that will be reclassified to profit or loss|51,258,053.43|52,126,425.89|
|6.2.1 Other comprehensive income that will be reclassified to|||
|profit or loss under the equity method|||
|6.2.2 Changes in the fair value of investments in other debt|||
|obligations|||
|6.2.3 Gain/Loss on changes in the fair value of|||
|||675,750.00|
|available-for-sale financial assets|||
|6.2.4 Other comprehensive income arising from the|||
|reclassification of financial assets|||
|6.2.5 Gain/Loss arising from the reclassification of|||
|held-to-maturity investments to available-for-sale financial assets|||
|6.2.6 Allowance for credit impairments in investments in|||
|other debt obligations|||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
||||
|-|-|-|
|6.2.7 Reserve for cash flow hedges|||
|6.2.8 Differences arising from the translation of foreign|||
||51,258,053.43|51,450,675.89|
|currency-denominated financial statements|||
|6.2.9 Other|||
|Attributable to non-controlling interests|||
|7. Total comprehensive income|655,776,178.72|691,748,098.63|
|Attributable to owners of the Company as the parent|639,157,424.55|639,022,441.42|
|Attributable to non-controlling interests|16,618,754.17|52,725,657.21|
|8. Earnings per share|||
|8.1 Basic earnings per share|0.68|0.64|
|8.2 Diluted earnings per share|0.68|0.64|

 Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Liu Zibin TheCompany’s chief accountant: Zhang Hongmei TheCompany’s financial manager: Zhang Keming
6. Income Statement of the Company as the Parent forQ1~Q3
Unit: RMB
||||
|-|-|-|
|Item|Q1~Q3 2019|Q1~Q3 2018|
|1. Operating revenue|3,716,383,597.08|3,815,256,129.99|
|Less: Cost of sales|2,763,237,736.46|2,831,327,287.54|
|Taxes and surcharges|41,622,943.89|57,522,630.63|
|Selling expense|68,978,522.39|58,633,294.63|
|Administrative expense|193,912,329.35|175,674,751.06|
|R&D expense|163,862,447.14|152,490,515.84|
|Finance costs|19,312,970.11|15,775,202.00|
|Including: Interest expense|22,211,902.54|11,499,059.62|
|Interest income|2,448,462.24|3,615,417.12|
|Add: Other income|24,502,578.64|32,824,295.66|
|Investment income (“-” for loss)|180,695,074.92|881,396.52|
|Including: Share of profit or loss of joint ventures and|||
||3,370,893.14|-2,785,907.65|
|associates|||
|Derecognition income of financial assets measured at|||
|amortized cost|||
|Net gain on exposure hedges (“-” for loss)|||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
||||
|-|-|-|
|Gain on changes in fair value (“-” for loss)|5,486,600.00|-30,399,300.00|
|Credit impairment loss (“-” for loss)|-2,593,516.95||
|Asset impairment loss (“-” for loss)||-1,025,520.28|
|Asset disposal income (“-” for loss)|306,167.84|-9,093,464.10|
|2. Operating profit (“-” for loss)|673,853,552.19|517,019,856.09|
|Add: Non-operating income|3,077,515.36|4,494,842.92|
|Less: Non-operating expense|6,646,250.89|2,339,681.53|
|3. Profit before tax (“-” for loss)|670,284,816.66|519,175,017.48|
|Less: Income tax expense|79,758,613.41|81,334,892.78|
|4. Net profit (“-” for net loss)|590,526,203.25|437,840,124.70|
|4.1 Net profit from continuing operations (“-” for net loss)|590,526,203.25|437,840,124.70|
|4.2 Net profit from discontinued operations (“-” for net loss)|||
|5. Other comprehensive income, net of tax||675,750.00|
|5.2 Items that will be reclassified to profit or loss||675,750.00|
|5.2.1 Other comprehensive income that will be reclassified to|||
|profit or loss under the equity method|||
|5.2.2 Changes in the fair value of investments in other debt|||
|obligations|||
|5.2.3 Gain/Loss on changes in the fair value of available-for-sale|||
|||675,750.00|
|financial assets|||
|5.2.4 Other comprehensive income arising from the|||
|reclassification of financial assets|||
|5.2.5 Gain/Loss arising from the reclassification of|||
|held-to-maturity investments to available-for-sale financial assets|||
|5.2.6 Allowance for credit impairments in investments in other|||
|debt obligations|||
|5.2.7 Reserve for cash flow hedges|||
|5.2.8 Differences arising from the translation of foreign|||
|currency-denominated financial statements|||
|5.2.9 Other|||
|6. Total comprehensive income|590,526,203.25|438,515,874.70|
|7. Earnings per share|||
|7.1 Basic earnings per share|0.69|0.47|
|7.2 Diluted earnings per share|0.69|0.47|

7. Consolidated Cash Flow Statement forQ1~Q3
Unit: RMB
Lu Thai Textile Co., Ltd. Third Quarter Report 2019
||||
|-|-|-|
|Item|Q1~Q3 2019|Q1~Q3 2018|
|1. Cash flows from operating activities:|||
|Proceeds from sale of commodities and rendering of services|4,697,089,850.71|4,919,565,086.62|
|Tax rebates|161,177,878.89|163,977,565.90|
|Cash generated from other operating activities|91,028,581.53|72,652,513.56|
|Subtotal of cash generated from operating activities|4,949,296,311.13|5,156,195,166.08|
|Payments for commodities and services|2,761,552,075.30|2,430,285,387.35|
|Cash paid to and for employees|1,266,692,936.92|1,234,503,411.97|
|Taxes paid|232,669,382.58|195,779,524.72|
|Cash used in other operating activities|206,578,300.20|172,474,225.29|
|Subtotal of cash used in operating activities|4,467,492,695.00|4,033,042,549.33|
|Net cash generated from/used in operating activities|481,803,616.13|1,123,152,616.75|
|2. Cash flows from investing activities:|||
|Proceeds from disinvestment|30,000,000.00||
|Return on investment|2,402,138.74||
|Net proceeds from the disposal of fixed assets, intangible assets|||
||2,662,361.66|32,556,953.49|
|and other long-lived assets|||
|Cash generated from other investing activities|18,383,297.66|76,342,399.31|
|Subtotal of cash generated from investing activities|53,447,798.06|108,899,352.80|
|Payments for the acquisition of fixed assets, intangible assets and|||
||611,715,722.57|806,532,720.12|
|other long-lived assets|||
|Payments for investments|50,000,000.00||
|Cash used in other investing activities|4,874,724.40|27,629,580.00|
|Subtotal of cash used in investing activities|666,590,446.97|834,162,300.12|
|Net cash generated from/used in investing activities|-613,142,648.91|-725,262,947.32|
|3. Cash flows from financing activities:|||
|Capital contributions received|50,000,000.00|500,000.00|
|Including: Capital contributions by non-controlling interests to|||
||50,000,000.00|500,000.00|
|subsidiaries|||
|Borrowings obtained|3,108,669,601.05|2,376,163,674.80|
|Cash generated from other financing activities|110,000,000.00|85,500,000.00|
|Subtotal of cash generated from financing activities|3,268,669,601.05|2,462,163,674.80|
|Repayments of borrowings|2,398,405,094.49|1,842,546,176.23|
|Payments for interest and dividends|545,798,024.25|496,450,783.83|
|Including: Dividends paid by subsidiaries to non-controlling|||
||62,023,566.38|12,023,566.38|
|interests|||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
||||
|-|-|-|
|Cash used in other financing activities|112,164,104.03|411,967,875.77|
|Subtotal of cash used in financing activities|3,056,367,222.77|2,750,964,835.83|
|Net cash generated from/used in financing activities|212,302,378.28|-288,801,161.03|
|4. Effect of foreign exchange rate changes on cash and cash|||
||14,142,881.59|17,794,234.31|
|equivalents|||
|5. Net increase in cash and cash equivalents|95,106,227.09|126,882,742.71|
|Add: Cash and cash equivalents, beginning of the period|535,134,772.90|676,639,212.86|
|6. Cash and cash equivalents, end of the period|630,240,999.99|803,521,955.57|

 8. Cash Flow Statement of the Company as the ParentQ1~Q3
Unit: RMB
||||
|-|-|-|
|Item|Q1~Q3 2019|Q1~Q3 2018|
|1. Cash flows from operating activities:|||
|Proceeds from sale of commodities and rendering of services|3,614,205,464.15|3,785,633,830.30|
|Tax rebates|117,003,748.15|106,532,179.75|
|Cash generated from other operating activities|28,034,497.06|43,398,321.95|
|Subtotal of cash generated from operating activities|3,759,243,709.36|3,935,564,332.00|
|Payments for commodities and services|2,030,728,889.86|2,128,325,245.47|
|Cash paid to and for employees|833,777,571.31|892,249,851.42|
|Taxes paid|132,287,115.34|126,464,943.27|
|Cash used in other operating activities|103,194,693.82|101,507,637.23|
|Subtotal of cash used in operating activities|3,099,988,270.33|3,248,547,677.39|
|Net cash generated from/used in operating activities|659,255,439.03|687,016,654.61|
|2. Cash flows from investing activities:|||
|Proceeds from disinvestment|30,000,000.00||
|Return on investment|170,378,572.36|17,976,433.62|
|Net proceeds from the disposal of fixed assets, intangible assets|||
||2,670,316.61|91,081,938.50|
|and other long-lived assets|||
|Net proceeds from the disposal of subsidiaries and other business|||
|units|||
|Cash generated from other investing activities|102,390,079.19|489,871,987.82|
|Subtotal of cash generated from investing activities|305,438,968.16|598,930,359.94|
|Payments for the acquisition of fixed assets, intangible assets and|||
||154,894,842.57|164,450,789.04|
|other long-lived assets|||
|Payments for investments|402,922,200.00|350,352,500.00|
|Net payments for the acquisition of subsidiaries and other business|||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
||||
|-|-|-|
|units|||
|Cash used in other investing activities|247,450,344.40|382,356,069.93|
|Subtotal of cash used in investing activities|805,267,386.97|897,159,358.97|
|Net cash generated from/used in investing activities|-499,828,418.81|-298,228,999.03|
|3. Cash flows from financing activities:|||
|Capital contributions received|||
|Borrowings obtained|1,743,028,577.13|1,414,730,254.38|
|Cash generated from other financing activities|317,313,300.00|241,357,600.00|
|Subtotal of cash generated from financing activities|2,060,341,877.13|1,656,087,854.38|
|Repayments of borrowings|1,463,702,550.96|1,189,079,694.80|
|Payments for interest and dividends|444,520,651.34|458,408,100.12|
|Cash used in other financing activities|359,508,204.03|411,967,875.77|
|Subtotal of cash used in financing activities|2,267,731,406.33|2,059,455,670.69|
|Net cash generated from/used in financing activities|-207,389,529.20|-403,367,816.31|
|4. Effect of foreign exchange rate changes on cash and cash|||
||2,994,642.42|-3,518,381.48|
|equivalents|||
|5. Net increase in cash and cash equivalents|-44,967,866.56|-18,098,542.21|
|Add: Cash and cash equivalents, beginning of the period|191,305,104.80|267,809,829.78|
|6. Cash and cash equivalents, end of the period|146,337,238.24|249,711,287.57|

 II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the Execution of any New Standards Governing Financial Instruments, Revenue or Leases from 2019
√ Applicable□ Not applicable
Consolidated Balance Sheet
Unit: RMB
|||||
|-|-|-|-|
|Item|31 December 2018|1 January 2019|Adjusted|
|Current assets:||||
|Monetary capital|545,502,709.36|545,502,709.36||
|Trading financial assets||60,612,000.00|60,612,000.00|
|Financial assets at fair value through profit or loss||||
|Derivative financial assets||||
|Notes receivable|174,657,918.26|174,657,918.26||
|Accounts receivable|374,607,116.55|374,607,116.55||
|Prepayments|149,582,616.21|149,582,616.21||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
|||||
|-|-|-|-|
|Other receivables|63,012,001.10|63,012,001.10||
|Including: Interest receivable||||
|Dividends receivable||||
|Financial assets purchased under resale agreements||||
|Inventories|2,093,366,992.30|2,093,366,992.30||
|Contractual assets||||
|Assets classified as held for sale||||
|Current portion of non-current assets||||
|Other current assets|86,366,454.56|86,366,454.56||
|Total current assets|3,487,095,808.34|3,547,707,808.34|60,612,000.00|
|Non-current assets:||||
|Investments in debt obligations||||
|Available-for-sale financial assets|85,112,000.00||-85,112,000.00|
|Investments in other debt obligations||||
|Held-to-maturity investments||||
|Long-term receivables|10,693,844.75|10,693,844.75||
|Long-term equity investments|96,018,463.65|95,554,809.90|-463,653.75|
|Investments in other equity instruments||12,000,000.00|12,000,000.00|
|Other non-current financial assets||31,018,515.95|31,018,515.95|
|Investment property|22,880,242.95|22,880,242.95||
|Fixed assets|5,748,562,385.35|5,748,562,385.35||
|Construction in progress|337,230,646.42|337,230,646.42||
|Intangible assets|478,689,064.45|478,689,064.45||
|R&D expense||||
|Goodwill|20,613,803.29|20,613,803.29||
|Long-term prepaid expense|119,126,407.71|119,126,407.71||
|Deferred income tax assets|88,636,929.06|85,859,151.67|-2,777,777.39|
|Other non-current assets|43,100,215.87|43,100,215.87||
|Total non-current assets|7,050,664,003.50|7,005,329,088.31|-45,334,915.19|
|Total assets|10,537,759,811.84|10,553,036,896.65|15,277,084.81|
|Current liabilities:||||
|Short-term borrowings|1,325,273,780.05|1,325,273,780.05||
|Trading financial liabilities||||
|Financial liabilities at fair value through profit or loss|4,877,600.00||-4,877,600.00|

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
|||||
|-|-|-|-|
|Derivative financial liabilities||4,877,600.00|4,877,600.00|
|Notes payable|502,347.05|502,347.05||
|Accounts payable|353,186,163.90|353,186,163.90||
|Advances from customers|105,562,378.66|105,562,378.66||
|Contractual liabilities||||
|Payroll payable|325,998,210.17|325,998,210.17||
|Taxes payable|43,556,823.75|43,556,823.75||
|Other payables|215,946,987.68|215,946,987.68||
|Including: Interest payable|3,068,841.54|3,068,841.54||
|Dividends payable|441,113.64|441,113.64||
|Liabilities directly associated with assets classified as||||
|held for sale||||
|Current portion of non-current liabilities||||
|Other current liabilities||||
|Total current liabilities|2,374,904,291.26|2,374,904,291.26||
|Non-current liabilities:||||
|Insurance contract reserve||||
|Long-term borrowings|170,019,083.89|170,019,083.89||
|Bonds payable||||
|Including: Preferred shares||||
|Perpetual bonds||||
|Long-term payables||||
|Long-term payroll payable|96,958,178.53|96,958,178.53||
|Provisions||||
|Deferred income|140,183,446.39|140,183,446.39||
|Deferred income tax liabilities|28,030,096.38|28,030,096.38||
|Other non-current liabilities|1,840,000.00|1,840,000.00||
|Total non-current liabilities|437,030,805.19|437,030,805.19||
|Total liabilities|2,811,935,096.45|2,811,935,096.45||
|Owners’ equity:||||
|Share capital|922,602,311.00|922,602,311.00||
|Capital reserves|699,493,647.48|699,493,647.48||
|Less: Treasury stock|486,922,944.94|486,922,944.94||
|Other comprehensive income|61,157,013.37|60,636,813.37|-520,200.00|
|Specific reserve||||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
|||||
|-|-|-|-|
|Surplus reserves|1,022,717,451.40|1,022,717,451.40||
|General reserve||||
|Retained earnings|4,927,500,989.55|4,943,298,274.36|15,797,284.81|
|Total equity attributable to owners of the Company as the|7,146,548,467.86|||
|||7,161,825,552.67|15,277,084.81|
|parent||||
|Non-controlling interests|579,276,247.53|579,276,247.53||
|Total owners’ equity|7,725,824,715.39|7,741,101,800.20|15,277,084.81|
|Total liabilities and owners’ equity|10,537,759,811.84|10,553,036,896.65|15,277,084.81|

 Note for adjustment:
In 2017, Ministry of Finance respectively revised and issued the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments, the Accounting Standards for Business Enterprises No. 23– Transfer of Financial Assets, the Accounting Standards for Business Enterprises No. 24– Hedging Accounting, and the Accounting Standards for Business Enterprises No. 37– Presentation of Financial Instruments (hereinafter jointly referred to as “new standards governing financial instruments”), which required that enterprises listed domestically shall implement it from 1 January 2019. According to the standards, enterprises shall, on implementation date of the standards, classify and measure financial instruments according to regulations, and adjustment is not needed if the involved previous comparative data of financial statements is different from the data under the “new standards governing financial instruments. For the balance between the original carrying value of financial instruments and the new carrying value on implementation date of the standards, the amount of the items on 1 January 2019 in financial statements shall be adjusted, such as earned earnings, other comprehensive income.
The Company began to implement the new standards governing financial instruments from 1 January 2019. According to Notes of Revising and Printing the Format of 2018 General Enterprises Financial Statement issued by the Ministry of Finance, the Company shall reclassify the original financial assets (liabilities) into trading financial assets, investments in other equity instruments, other non-current financial assets, and derivative financial liabilities. For details about the influenced items and amounts, see the above adjusted financial statements.
Balance Sheet of the Company as the Parent
Unit: RMB
|||||
|-|-|-|-|
|Item|31 December 2018|1 January 2019|Adjusted|
|Current assets:||||
|Monetary capital|191,305,104.80|191,305,104.80||
|Trading financial assets||60,612,000.00|60,612,000.00|
|Financial assets at fair value through profit or loss||||
|Derivative financial assets||||
|Notes receivable|91,555,248.34|91,555,248.34||
|Accounts receivable|316,225,973.28|316,225,973.28||
|Accounts receivable financing||||
|Prepayments|115,020,260.51|115,020,260.51||
|Other receivables|395,847,213.77|395,847,213.77||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
|||||
|-|-|-|-|
|Including: Interest receivable||||
|Dividends receivable||||
|Inventories|1,040,433,078.53|1,040,433,078.53||
|Contractual assets||||
|Assets classified as held for sale||||
|Current portion of non-current assets||||
|Other current assets|12,671,631.64|12,671,631.64||
|Total current assets|2,163,058,510.87|2,223,670,510.87|60,612,000.00|
|Non-current assets:||||
|Investments in debt obligations||||
|Available-for-sale financial assets|73,112,000.00||-73,112,000.00|
|Investments in other debt obligations||||
|Held-to-maturity investments||||
|Long-term receivables||||
|Long-term equity investments|2,165,711,579.69|2,165,247,925.94|-463,653.75|
|Investments in other equity instruments||||
|Other non-current financial assets||31,018,515.95|31,018,515.95|
|Investment property|14,804,592.72|14,804,592.72||
|Fixed assets|2,731,726,695.28|2,731,726,695.28||
|Construction in progress|61,182,771.86|61,182,771.86||
|Intangible assets|242,204,032.54|242,204,032.54||
|Goodwill||||
|Long-term prepaid expense||||
|Deferred income tax assets|52,758,961.05|49,981,183.66|-2,777,777.39|
|Other non-current assets|6,047,443.10|6,047,443.10||
|Total non-current assets|5,347,548,076.24|5,302,213,161.05|-45,334,915.19|
|Total assets|7,510,606,587.11|7,525,883,671.92|15,277,084.81|
|Current liabilities:||||
|Short-term borrowings|622,604,447.52|622,604,447.52||
|Trading financial liabilities||||
|Financial liabilities at fair value through profit or loss|4,877,600.00||-4,877,600.00|
|Derivative financial liabilities||4,877,600.00|4,877,600.00|
|Notes payable|120,000.00|120,000.00||
|Accounts payable|120,021,727.66|120,021,727.66||

Lu Thai Textile Co., Ltd. Third Quarter Report 2019
|||||
|-|-|-|-|
|Advances from customers|49,798,551.14|49,798,551.14||
|Contractual liabilities||||
|Payroll payable|240,090,943.88|240,090,943.88||
|Taxes payable|30,914,089.32|30,914,089.32||
|Other payables|303,672,590.72|303,672,590.72||
|Including: Interest payable|2,475,549.88|2,475,549.88||
|Dividends payable|441,113.64|441,113.64||
|Liabilities directly associated with assets classified as||||
|held for sale||||
|Current portion of non-current liabilities||||
|Other current liabilities||||
|Total current liabilities|1,372,099,950.24|1,372,099,950.24||
|Non-current liabilities:||||
|Long-term borrowings||||
|Long-term payables||||
|Long-term payroll payable|96,958,178.53|96,958,178.53||
|Provisions||||
|Deferred income|94,390,844.09|94,390,844.09||
|Deferred income tax liabilities|16,699,530.43|16,699,530.43||
|Non-current liabilities||||
|Total non-current liabilities|208,048,553.05|208,048,553.05||
|Total liabilities|1,580,148,503.29|1,580,148,503.29||
|Owners’ equity:||||
|Share capital|922,602,311.00|922,602,311.00||
|Capital reserves|759,836,756.57|759,836,756.57||
|Less: Treasury stock|486,922,944.94|486,922,944.94||
|Other comprehensive income|520,200.00||-520,200.00|
|Specific reserves||||
|Surplus reserves|1,019,608,711.76|1,019,608,711.76||
|Retained earnings|3,714,813,049.43|3,730,610,334.24|15,797,284.81|
|Total owners’ equity|5,930,458,083.82|5,945,735,168.63|15,277,084.81|
|Total liabilities and owners’ equity|7,510,606,587.11|7,525,883,671.92|15,277,084.81|

 Note for adjustment:
In 2017, Ministry of Finance respectively revised and issued the Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments, the Accounting Standards for Business Enterprises No. 23– Transfer of Financial Assets,
Lu Thai Textile Co., Ltd. Third Quarter Report 2019 the Accounting Standards for Business Enterprises No. 24– Hedging Accounting, and the Accounting Standards for Business Enterprises No. 37– Presentation of Financial Instruments (hereinafter jointly referred to as “new standards governing financial instruments”), which required that enterprises listed domestically shall implement it from 1 January 2019. According to the standards, enterprises shall, on implementation date of the standards, classify and measure financial instruments according to regulations, and adjustment is not needed if the involved previous comparative data of financial statements is different from the data under the “new standards governing financial instruments. For the balance between the original carrying value of financial instruments and the new carrying value on implementation date of the standards, the amount of the items on 1 January 2019 in financial statements shall be adjusted, such as earned earnings, other comprehensive income.
The Company began to implement the new standards governing financial instruments from 1 January 2019. According to Notes of Revising and Printing the Format of 2018 General Enterprises Financial Statement issued by the Ministry of Finance, the Company shall reclassify the original financial assets (liabilities) into trading financial assets, investments in other equity instruments, other non-current financial assets, and derivative financial liabilities. For details about the influenced items and amounts, see the above adjusted financial statements.
2. Retrospective Restatement of Previous Comparative Data due to the Execution of any New Standards Governing Financial Instruments or Leases from 2019
□ Applicable√ Not applicable
III IndependentAuditor’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.
Signature of the Chairman of the Board: Liu Zibin Lu Thai Textile Co., Ltd.
30 October 2019