Lu Thai Textile Co. Ltd. First Quarterly Report 2022

Stock Code: 000726 200726 Stock Name: LTTC LTTC-B Announcement No. 2022-023

Bond Code: 127016 Bond Name: LTTC Convertible Bonds

LU THAI TEXTILE CO. LTD.FIRST QUARTERLY REPORT 2022

Lu Thai Textile Co. Ltd. (hereinafter referred to as the “Company”) and all the members of the

Company’s Board of Directors hereby guarantee that the contents of this Report are true accurate and

complete and free of any misrepresentations misleading statements or material omissions.Important Notes:

1. The Board of Directors the Supervisory Committee as well as the directors supervisors and senior

management of the Company hereby guarantee that the contents of this Report are true accurate and complete and

free of any misrepresentations misleading statements or material omissions and collectively and individually

accept legal responsibility for such contents.

2. The Company’s legal representative chief accountant and financial manager hereby guarantee that the financial

statements carried in this Report are true accurate and complete.

3. Indicate whether the financial statements in this Report have been audited by an independent auditor.

□Yes √ No

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

Indicate whether there is any retrospectively restated datum in the table below.□ Yes √ No

Q1 2022 Q1 2021 YoY change (%)

Operating revenue (RMB) 1580088801.60 993485161.79 59.05%

Net profit attributable to the listed

159375310.1974530850.40113.84%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before 137429342.24 15513465.07 785.87%

exceptional gains and losses (RMB)

Net cash generated from/used in operating

-15953827.96-36745428.2856.58%

activities (RMB)

1Lu Thai Textile Co. Ltd. First Quarterly Report 2022

Basic earnings per share (RMB/share) 0.18 0.09 100.00%

Diluted earnings per share (RMB/share) 0.16 0.09 77.78%

Weighted average return on equity (%) 1.97% 0.96% 1.01%

31 March 2022 31 December 2021 Change (%)

Total assets (RMB) 12843807393.13 12987221271.63 -1.10%

Equity attributable to the listed company’s

8149893927.497983307400.032.09%

shareholders (RMB)

(II) Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item Q1 2022 Note

Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) -607776.95

Government grants through profit or loss (exclusive of government grants continuously given

in the Company’s ordinary course of business at fixed quotas or amounts as per the 24736127.27

government’s policies and standards)

Gain or loss on fair-value changes on held-for-trading financial assets and liabilities & income

from disposal of held-for-trading financial assets and liabilities and available-for-sale financial

4883000.00

assets (exclusive of the effective portion of hedges that arise in the Company’s ordinary course

of business)

Reverse of provision for impairment of accounts receivable individually conducting

175622.16

impairment test

Non-operating income and expense other than the above 340757.97

Less: Income tax effects 7180157.74

Non-controlling interests effects (net of tax) 401604.76

Total 21945967.95 --

Other items that meet the definition of exceptional gain/loss:

□ Applicable √ Not applicable

No such cases in the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.

1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:

□ Applicable √ Not applicable

No such cases in the Reporting Period.

2Lu Thai Textile Co. Ltd. First Quarterly Report 2022

(III) Changes in Key Financial Information and Explanation of why

√ Applicable □ Not applicable

Item Change (%) Main reason for change

Operating revenue 59.05

Net profit attributable to the listed 113.84

company’s shareholders YoY increase in sales volume due to the recovery of

Net profit attributable to the listed 785.87 m arket demand

company’s shareholders before

exceptional gains and losses

56.58 Y oY increase in net cash generated from selling

Net cash generated from/used in goods and rendering labor services and used in

operating activities purchasing goods and receiving labor services for

Q1 2022

Basic earnings per share 100.00

Increase in Q1 2022 net profit

Diluted earnings per share 77.78

II Shareholder Information

(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well

as Holdings of Top 10 Shareholders

Unit: share

Number of ordinary shareholders Number of preferred shareholders with resumed

551830

at the period-end voting rights at the period-end (if any)

Top 10 shareholders

Shareho Shares in pledge

Nature of lding Total shares Restricted marked or frozen

Name of shareholder

shareholder percenta held shares held

Status Shares

ge

Domestic

Zibo Lucheng Textile Investment

non-state-owned 15.80% 140353583

Co. Ltd.corporation

Tailun (Thailand) Textile Co. Foreign

13.31%118232400

Ltd. corporation

Central Huijin Assets State-owned 2.24% 19884100

3Lu Thai Textile Co. Ltd. First Quarterly Report 2022

Management Co. Ltd. corporation

Domestic

National Social Security Fund

non-state-owned 1.27% 11250051

Portfolio 413

legal person

Zhong Ou China Securities Asset

Other 0.59% 5235900

Management Plan

Dacheng China Securities Asset

Other 0.59% 5235900

Management Plan

GF China Securities Asset

Other 0.59% 5235900

Management Plan

Yinhua China Securities Asset

Other 0.59% 5235900

Management Plan

Harvest China Securities Asset

Other 0.58% 5192800

Management Plan

ICBC Credit Suisse Innovation

Power Stock Securities Other 0.56% 4950000

Investment Fund

Top 10 unrestricted shareholders

Shares by type

Name of shareholder Unrestricted shares held

Type Shares

RMB-denominate

Zibo Lucheng Textile Investment Co. Ltd. 140353583 140353583

d ordinary stock

Domestically

Tailun (Thailand) Textile Co. Ltd. 118232400 listed foreign 118232400

stock

RMB-denominate

Central Huijin Assets Management Co. Ltd. 19884100 19884100

d ordinary stock

RMB-denominate

National Social Security Fund Portfolio 413 11250051 11250051

d ordinary stock

Zhong Ou China Securities Asset Management RMB-denominate

52359005235900

Plan d ordinary stock

Dacheng China Securities Asset Management RMB-denominate

52359005235900

Plan d ordinary stock

GF China Securities Asset Management Plan 5235900 RMB-denominate 5235900

4Lu Thai Textile Co. Ltd. First Quarterly Report 2022

d ordinary stock

Yinhua China Securities Asset Management RMB-denominate

52359005235900

Plan d ordinary stock

Harvest China Securities Asset Management RMB-denominate

51928005192800

Plan d ordinary stock

ICBC Credit Suisse Innovation Power Stock RMB-denominate

49500004950000

Securities Investment Fund d ordinary stock

Zibo Lucheng Textile Investment Co. Ltd. is the largest shareholder of the

Company and the actual controller. All of other shareholders are people

Related or acting-in-concert parties among the

holding public A share or B share and the Company is not able to confirm

shareholders above

whether there is associated relationship or concerted action among other

shareholders.Top 10 shareholders engaged in securities

Naught

margin trading (if any)

(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

III Other Significant Events

√ Applicable □ Not applicable

The Company convened the 30th Meeting of the 9th Board of Directors and the 18th Meeting of the 9th Supervisory Committee on 18

February 2022 on which the Proposal on Granting the Qualified Awardees the Reserved Restricted Shares of the Incentive Plan for

2021 was reviewed and approved. The Company completed the registration of granting 343 incentive objects 5838000 reserved

restricted shares on 18 March 2022. For more details please refer to relevant announcements disclosed on Cninfo

(www.cninfo.com.cn) respectively on 19 February 2022 and 18 March 2022.IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Lu Thai Textile Co. Ltd.

31 March 2022

Unit: RMB

Item 31 March 2022 31 December 2021

Current assets:

5Lu Thai Textile Co. Ltd. First Quarterly Report 2022

Monetary assets 1823376611.81 1999712889.35

Settlement reserve

Loans to other banks and financial

institutions

Held-for-trading financial assets 4087000.00 1727000.00

Derivative financial assets

Notes receivable 152820042.64 227740247.89

Accounts receivable 665112339.09 647277198.51

Receivables financing 40408631.42 34663071.88

Prepayments 143957361.17 54545954.20

Other receivables 76068581.68 74191613.22

Including: Interest receivable

Dividends receivable 47025975.44 47025975.44

Financial assets purchased under

resale agreements

Inventories 2397600061.41 2345346794.28

Contract assets

Assets held for sale

Current portion of non-current

assets

Other current assets 57954792.87 55992522.81

Total current assets 5361385422.09 5441197292.14

Non-current assets:

Long-term receivables

Long-term equity investments 154483170.07 169443106.66

Investments in other equity

instruments

Other non-current financial assets 190052000.00 190052000.00

Investment property 21197566.25 21362302.03

Fixed assets 5485743715.69 5561601374.44

Construction in progress 256139339.76 237579082.99

Right-of-use assets 252534420.77 257019286.15

6Lu Thai Textile Co. Ltd. First Quarterly Report 2022

Intangible assets 360396442.92 363130978.14

Development costs

Goodwill 20563803.29 20563803.29

Long-term prepaid expense 595294.21 672601.04

Deferred income tax assets 142835130.77 138516136.50

Other non-current assets 597881087.31 586083308.25

Total non-current assets 7482421971.04 7546023979.49

Total assets 12843807393.13 12987221271.63

Current liabilities:

Short-term borrowings 880115845.68 1011034138.32

Held-for-trading financial

liabilities

Derivative financial liabilities

Notes payable 12850000.00

Accounts payable 286083478.05 335401371.30

Advances from customers

Contract liabilities 155506797.75 204967348.96

Employee benefits payable 192778812.39 272014296.09

Taxes and levies payable 51136863.68 29457702.72

Other payables 122907735.63 97200565.31

Including: Interest payable

Dividends payable 441113.64 441113.64

Current portion of non-current

72357208.278877404.52

liabilities

Other current liabilities 76015396.96 120434721.81

Total current liabilities 1849752138.41 2079387549.03

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 619978412.83 684962473.24

Bonds payable 1407796380.76 1395480652.71

Lease liabilities 118131732.04 121357658.41

7Lu Thai Textile Co. Ltd. First Quarterly Report 2022

Long-term payables

Long-term employee benefits

57384062.3957384062.39

payable

Provisions

Deferred income 165148621.68 188958133.78

Deferred income tax liabilities 93739721.13 92571310.14

Other non-current liabilities

Total non-current liabilities 2462178930.83 2540714290.67

Total liabilities 4311931069.24 4620101839.70

Owners’ equity:

Share capital 888180207.00 882341295.00

Other equity instruments 71384248.89 71384656.84

Capital reserves 368450871.26 340587387.65

Less: Treasury stock 99691580.00 78908300.00

Other comprehensive income -42131238.76 -36423748.37

Specific reserve

Surplus reserves 1215124336.54 1215124336.54

General reserve

Retained earnings 5748577082.56 5589201772.37

Total equity attributable to owners of

8149893927.497983307400.03

the Company as the parent

Non-controlling interests 381982396.40 383812031.90

Total owners’ equity 8531876323.89 8367119431.93

Total liabilities and owners’ equity 12843807393.13 12987221271.63

Legal representative: Liu Zibin The Company’s chief accountant: Zhang Hongmei

The Company’s financial manager: Zhang Keming

2. Consolidated Income Statement

Unit: RMB

Item Q1 2022 Q1 2021

1. Revenues 1580088801.60 993485161.79

8Lu Thai Textile Co. Ltd. First Quarterly Report 2022

Including: Operating revenue 1580088801.60 993485161.79

2. Costs and expenses 1409725138.20 985587009.24

Including: Cost of sales 1194927176.45 815351239.75

Taxes and levies 15116716.56 13245938.39

Selling expense 33331245.31 22876675.00

Administrative expense 92775354.83 70211600.57

Development costs 56733874.74 61633248.90

Finance costs 16840770.31 2268306.63

Including: Interest expense 18139093.23 12971587.55

Interest income 9609487.98 7867810.79

Add: Other income 24599534.70 12470516.19

Return on investment (“-” for loss) 886584.91 7111896.31

Including: Share of profit or loss of joint ventures and

-1636415.09-2671359.52

associates

Income from the derecognition of financial assets

at amortized cost (“-” for loss)

Exchange gain (“-” for loss)

Net gain on exposure hedges (“-” for loss)

Gain on changes in fair value (“-” for loss) 2360000.00 -10376010.56

Credit impairment loss (“-” for loss) 1853310.17 14759025.50

Asset impairment loss (“-” for loss) -12447808.03 -6272617.88

Asset disposal income (“-” for loss) -603708.22 59394526.45

3. Operating profit (“-” for loss) 187011576.93 84985488.56

Add: Non-operating income 1828060.78 408813.34

Less: Non-operating expense 1354778.97 2288330.70

4. Gross profit (“-” for loss) 187484858.74 83105971.20

Less: Income tax expense 29939184.05 14524286.78

5. Net profit (“-” for net loss) 157545674.69 68581684.42

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net

157545674.6968581684.42

loss)

9Lu Thai Textile Co. Ltd. First Quarterly Report 2022

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

159375310.1974530850.40

the parent

5.2.1 Net profit attributable to non-controlling interests -1829635.50 -5949165.98

6. Other comprehensive income net of tax -5707490.39 12399955.74

Attributable to owners of the Company as the parent -5707490.39 12399955.74

6.1 Items that will not be reclassified to profit or loss

6.1.1 Changes caused by remeasurements on defined

benefit schemes

6.1.2 Other comprehensive income that will not be

reclassified to profit or loss under the equity method

6.1.3 Changes in the fair value of investments in other

equity instruments

6.1.4 Changes in the fair value arising from changes in

own credit risk

6.1.5 Other

6.2 Items that will be reclassified to profit or loss -5707490.39 12399955.74

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 other debt

investments

6.2.3 Other comprehensive income arising from the

reclassification of financial assets

6.2.4 Credit impairment allowance for other debt

investments

6.2.5 Reserve for cash flow hedges

6.2.6 Differences arising from the translation of

-5438747.0812399955.74

foreign currency-denominated financial statements

6.2.7 Other -268743.31

Attributable to non-controlling interests

7. Total comprehensive income 151838184.30 80981640.16

Attributable to owners of the Company as the parent 153667819.80 86930806.14

10Lu Thai Textile Co. Ltd. First Quarterly Report 2022

Attributable to non-controlling interests -1829635.50 -5949165.98

8. Earnings per share

8.1 Basic earnings per share 0.18 0.09

8.2 Diluted earnings per share 0.16 0.09

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 The Company’s chief accountant: Zhang Hongmei

The Company’s financial manager: Zhang Keming

3. Consolidated Cash Flow Statement

Unit: RMB

Item Q1 2022 Q1 2021

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 1478567179.99 997750757.76

Tax and levy rebates 38224128.00 11490245.21

Cash generated from other operating activities 10812024.85 13616137.98

Subtotal of cash generated from operating activities 1527603332.84 1022857140.95

Payments for commodities and services 1024631847.67 583308258.22

Cash paid to and for employees 452625366.04 389050366.67

Taxes and levies paid 31608127.59 35216278.07

Cash used in other operating activities 34691819.50 52027666.27

Subtotal of cash used in operating activities 1543557160.80 1059602569.23

Net cash generated from/used in operating activities -15953827.96 -36745428.28

2. Cash flows from investing activities:

Proceeds from disinvestment 13323521.50 672000000.00

Return on investment 5802806.85

Net proceeds from the disposal of fixed assets intangible assets

4503457.00420900.00

and other long-lived assets

Net proceeds from the disposal of subsidiaries and other business

units

Cash generated from other investing activities 12608822.18 12538101.84

11Lu Thai Textile Co. Ltd. First Quarterly Report 2022

Subtotal of cash generated from investing activities 30435800.68 690761808.69

Payments for the acquisition of fixed assets intangible assets and

85652349.91149203426.43

other long-lived assets

Payments for investments 523970000.00

Cash used in other investing activities 108589.66 1378057.33

Subtotal of cash used in investing activities 85760939.57 674551483.76

Net cash generated from/used in investing activities -55325138.89 16210324.93

3. Cash flows from financing activities:

Capital contributions received 20783280.00

Including: Capital contributions by non-controlling interests to

subsidiaries

Borrowings received 419668185.51 443069396.92

Cash generated from other financing activities

Subtotal of cash generated from financing activities 440451465.51 443069396.92

Repayment of borrowings 528860301.40 261626057.07

Interest and dividends paid 8524817.85 8455661.04

Including: Dividends paid by subsidiaries to non-controlling

interests

Cash used in other financing activities 4426403.00

Subtotal of cash used in financing activities 541811522.25 270081718.11

Net cash generated from/used in financing activities -101360056.74 172987678.81

4. Effect of foreign exchange rates changes on cash and cash

-3557919.186827333.56

equivalents

5. Net increase in cash and cash equivalents -176196942.77 159279909.02

Add: Cash and cash equivalents beginning of the period 1970006884.89 1396530407.47

6. Cash and cash equivalents end of the period 1793809942.12 1555810316.49

(II) Independent Auditor’s Report

Indicate by tick mark whether the financial statements above have been audited by an independent auditor.□ Yes √ No

These financial statements have not been audited by such an auditor.

12Lu Thai Textile Co. Ltd. First Quarterly Report 2022

Board of Director

Lu Thai Textile Co. Ltd.

29 April 2022

13