Lu Thai Textile Co. Ltd. First Quarterly Report 2024

Stock Code: 000726 200726 Stock Name: LTTC LTTC-B Announcement No. 2024-032

Bond Code: 127016 Bond Name: LTTC Convertible Bonds

LU THAI TEXTILE CO. LTD.FIRST QUARTERLY REPORT 2024

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

This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the

two versions the Chinese version shall prevail.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 2024 Q1 2023 YoY change (%)

Operating revenue (RMB) 1382655063.47 1378301160.57 0.32%

Net profit attributable to the listed company’s

68241726.3395759162.05-28.74%

shareholders (RMB)

Net profit attributable to the listed company’s

122504699.1551332367.74138.65%

shareholders before exceptional gains and losses (RMB)

Net cash generated from/used in operating activities

93395090.36-36789172.94353.87%

(RMB)

Basic earnings per share (RMB/share) 0.08 0.11 -27.27%

Diluted earnings per share (RMB/share) 0.08 0.10 -20.00%

1Lu Thai Textile Co. Ltd. First Quarterly Report 2024

Weighted average return on equity (%) 0.74% 1.06% -0.32%

31 March 2024 31 December 2023 Change (%)

Total assets (RMB) 13876740262.84 13430286222.94 3.32%

Equity attributable to the listed company’s shareholders

9270034568.199230806905.800.42%

(RMB)

(II) Exceptional Gains and Losses

□ Applicable □ Not applicable

Unit: RMB

Item Q1 2024 Note

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

-324538.89

offs)

Government grants recognised in profit or loss (exclusive of those that are closely

related to the Company's normal business operations and given in accordance with

12013904.08

defined criteria and in compliance with government policies and have a continuing

impact on the Company's profit or loss)

Gain or loss on fair-value changes in financial assets and liabilities held by a non-

financial enterprise as well as on disposal of financial assets and liabilities (exclusive

-76232111.33

of the effective portion of hedges that is related to the Company's normal business

operations)

Non-operating income and expense other than the above 534227.42

Less: Income tax effects -9266243.61

Non-controlling interests effects (net of tax) -479302.29

Total -54262972.82

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

□ Applicable □ Not applicable

Item Change (%) Main reason for change

Q1 2024

Net profit attributable to the listed

company’s shareholders before 138.65% Decrease in sales costs and finance costs for Q1 2024

exceptional gains and losses

Net cash generated from/used in Decrease in cash paid for purchasing goods and accepting

353.87%

operating activities (RMB) labor services for Q1 2024

2Lu Thai Textile Co. Ltd. First Quarterly Report 2024

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 at the Number of preferred shareholders with resumed

480310

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

Top 10 shareholders (exclusive of shares lent in refinancing)

Sharehol

Nature of Shares in pledge marked or frozen

ding Restricted

Name of shareholder shareholde Total shares held

percenta shares held

r Status Shares

ge

Domestic

non-state-

Zibo Lucheng Textile

owned 17.17% 140353583.00 0.00 N/A 0.00

Investment Co. Ltd.corporatio

n

Foreign

Tailun (Thailand) Textile

corporatio 14.10% 115232400.00 0.00 N/A 0.00

Co. Ltd.n

State-

Central Huijin Assets owned

2.43% 19884100.00 0.00 N/A 0.00

Management Co. Ltd. corporatio

n

National Social Security

Other 1.74% 14190051.00 0.00 N/A 0.00

Fund Portfolio 413

ICBC Credit Suisse

Innovation Power Stock

Other 1.36% 11100000.00 0.00 N/A 0.00

Securities Investment

Fund

Dongfanghong Zhihua

Three-Year Holding

Other 0.90% 7394950.00 0.00 N/A 0.00

Mixed Securities

Investment Fund

Dacheng Selected Mixed

Securities Investment Other 0.78% 6350000.00 0.00 N/A 0.00

Fund (LOF)

Dongfanghong Jingdong

Big Data Dynamic Asset

Allocation Mixed Other 0.77% 6324582.00 0.00 N/A 0.00

Securities Investment

Fund

FEDERATED HERMES

GLOBAL

INVESTMENT FD

Foreign

(CAYMAN) MASTER

corporatio 0.76% 6200183.00 0.00 N/A 0.00

SPC OBOAFTAO

n

FEDERATED HERMES

EMG ASIA EQUITY

FD MASTER S.P.Dongfanghong New

Power Dynamic Asset

Allocation Mixed Other 0.71% 5821030.00 0.00 N/A 0.00

Securities Investment

Fund

Top 10 unrestricted shareholders

3Lu Thai Textile Co. Ltd. First Quarterly Report 2024

Shares by type

Name of shareholder Unrestricted shares held

Type Shares

RMB-

Zibo Lucheng Textile Investment Co.

140353583.00 denominated 140353583.00

Ltd.ordinary stock

Domestically

Tailun (Thailand) Textile Co. Ltd. 115232400.00 listed foreign 115232400.00

stock

RMB-

Central Huijin Assets Management

19884100.00 denominated 19884100.00

Co. Ltd.ordinary stock

RMB-

National Social Security Fund

14190051.00 denominated 14190051.00

Portfolio 413

ordinary stock

RMB-

ICBC Credit Suisse Innovation Power

11100000.00 denominated 11100000.00

Stock Securities Investment Fund ordinary stock

Dongfanghong Zhihua Three-Year RMB-

Holding Mixed Securities Investment 7394950.00 denominated 7394950.00

Fund ordinary stock

RMB-

Dacheng Selected Mixed Securities

6350000.00 denominated 6350000.00

Investment Fund (LOF) ordinary stock

Dongfanghong Jingdong Big Data RMB-

Dynamic Asset Allocation Mixed 6324582.00 denominated 6324582.00

Securities Investment Fund ordinary stock

FEDERATED HERMES GLOBAL

INVESTMENT FD (CAYMAN) Domestically

MASTER SPC OBOAFTAO 6200183.00 listed foreign 6200183.00

FEDERATED HERMES EMG ASIA stock

EQUITY FD MASTER S.P.Dongfanghong New Power Dynamic RMB-

Asset Allocation Mixed Securities 5821030.00 denominated 5821030.00

Investment Fund ordinary stock

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

Company and the actual controller. Tailun (Thailand) Textile Co. Ltd. is

Related or acting-in-concert parties among the the second largest shareholder as well as sponsor of foreign capital of the

shareholders above Company. All of other shareholders are people holding public A share or B

share and the Company is not able to confirm whether there is associated

relationship or concerted action among other shareholders.Top 10 shareholders engaged in securities margin

Naught

trading (if any)

5% or greater shareholders top 10 shareholders and Top 10 unrestricted shareholders involved in refinancing shares lending

□Applicable □ Not applicable

Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shares lending/return compared with the

prior period

□Applicable □ Not applicable

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

□Applicable □ Not applicable

III Other Significant Events

□ Applicable □ Not applicable

4Lu Thai Textile Co. Ltd. First Quarterly Report 2024

The Proposal on Repurchase of Domestically Listed Foreign Shares (B-Share) was approved at the 10th Meeting of the 10th Board

of Directors and the First Extraordinary General Meeting of 2023. As such an amount of no more than RMB200 million would be

used to repurchase shares with a price limit of HKD4.80 per share within 12 months from the date when the share repurchase

plan was approved at the general meeting. On 21 August 2023 the Company carried out the first repurchase. As of 21 February

2024 the Company had completed the implementation of the Repurchase Plan of Domestically Listed Foreign Shares (B-Share).

The Company accumulatively repurchased 46176428 B-shares (5.35% of the Company’s total share capital). With the highest

repurchase price being HKD4.80/share and the lowest being HKD4.53/share the total payment for this repurchase plan was

HKD218386229.84 (inclusive of commissions and alike). The Company completed the formalities for cancellation of the

foregoing repurchased shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on 1

March 2024.IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Lu Thai Textile Co. Ltd.

31 March 2024

Unit: RMB

Item 31 March 2024 1 January 2024

Current assets:

Monetary assets 1783076067.10 1558252048.03

Held-for-trading financial assets 863020314.02 723800275.39

Derivative financial assets

Notes receivable 80550357.78 99642708.67

Accounts receivable 795032833.89 826467684.78

Receivables financing 46903176.04 18248205.76

Prepayments 115370895.84 51863447.56

Other receivables 35790886.04 22168807.43

Including: Interest receivable

Dividends receivable

Inventories 2053468541.13 2124139574.70

Other current assets 151363498.80 145112114.03

Total current assets 5924576570.64 5569694866.35

Non-current assets:

Long-term equity investments 170335472.46 143537479.77

Investments in other equity instruments

Other non-current financial assets 88750000.00 88750000.00

Investment property 19352515.45 19578175.93

Fixed assets 5600029079.45 5597692505.07

5Lu Thai Textile Co. Ltd. First Quarterly Report 2024

Construction in progress 781842610.86 868496878.41

Right-of-use assets 477105968.11 463226419.21

Intangible assets 340669933.98 343347879.42

Development costs

Goodwill 20563803.29 20563803.29

Long-term prepaid expense 4493645.72 1815838.60

Deferred income tax assets 159399122.28 157892110.06

Other non-current assets 289621540.60 155690266.83

Total non-current assets 7952163692.20 7860591356.59

Total assets 13876740262.84 13430286222.94

Current liabilities:

Short-term borrowings 625466667.79 580704772.27

Held-for-trading financial liabilities 84227317.90 46785831.47

Derivative financial liabilities

Notes payable

Accounts payable 210353685.50 275502915.05

Advances from customers

Contract liabilities 166416698.18 188073335.89

Employee benefits payable 210708895.92 284344973.72

Taxes and levies payable 26145230.55 42633232.55

Other payables 50712092.87 47549373.52

Including: Interest payable

Dividends payable 441113.64 441113.64

Current portion of non-current liabilities 19743274.83 96207192.49

Other current liabilities 39379854.59 63646908.11

Total current liabilities 1433153718.13 1625448535.07

Non-current liabilities:

Long-term borrowings 832308382.70 259992974.40

Bonds payable 1489721662.55 1476572070.79

Lease liabilities 102560399.23 86580224.41

Long-term payables

Long-term employee benefits payable 57276675.61 57276675.61

Provisions

Deferred income 149902964.22 151768947.92

Deferred income tax liabilities 152666678.66 155178797.04

Other non-current liabilities

Total non-current liabilities 2784436762.97 2187369690.17

Total liabilities 4217590481.10 3812818225.24

6Lu Thai Textile Co. Ltd. First Quarterly Report 2024

Owners’ equity:

Share capital 817431206.00 863607634.00

Other equity instruments 71383677.78 71383677.78

Capital reserves 183565335.39 334792614.76

Less: Treasury stock 31556265.00 193438720.78

Other comprehensive income 134767287.57 131343141.63

Specific reserve 3083041.71

Surplus reserves 1260661015.34 1260661015.34

General reserve

Retained earnings 6830699269.40 6762457543.07

Total equity attributable to owners of the

9270034568.199230806905.80

Company as the parent

Non-controlling interests 389115213.55 386661091.90

Total owners’ equity 9659149781.74 9617467997.70

Total liabilities and owners’ equity 13876740262.84 13430286222.94

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

The Company’s financial manager: Zhang Keming

2. Consolidated Income Statement

Unit: RMB

Item Q1 2024 Q1 2023

1. Revenues 1382655063.47 1378301160.57

Including: Operating revenue 1382655063.47 1378301160.57

2. Costs and expenses 1244353590.36 1322345679.23

Including: Cost of sales 1057560104.34 1092250995.98

Taxes and levies 14398626.79 16217092.59

Selling expense 30889078.44 33253553.15

Administrative expense 82503138.98 82717307.27

Development costs 55902365.72 61804412.07

Finance costs 3100276.09 36102318.17

Including: Interest costs 23744746.88 18056914.23

Interest revenue 11898037.72 14108606.20

Add: Other income 11971737.41 18522742.21

Return on investment (“-” for loss) 23510003.30 38579946.99

Including: Share of profit or loss of joint ventures and

26797992.6922919711.06

associates

Income from the derecognition of financial assets at

amortized cost (“-” for loss)

Exchange gain (“-” for loss)

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

7Lu Thai Textile Co. Ltd. First Quarterly Report 2024

Gain on changes in fair value (“-” for loss) -72944121.94 18849156.70

Credit impairment loss (“-” for loss) 1459760.70 12305904.55

Asset impairment loss (“-” for loss) -18664995.37 -37085094.15

Asset disposal income (“-” for loss) -324538.89 -697500.60

3. Operating profit (“-” for loss) 83309318.32 106430637.04

Add: Non-operating income 1270516.38 1794053.25

Less: Non-operating expense 736288.96 216172.51

4. Gross profit (“-” for loss) 83843545.74 108008517.78

Less: Income tax expense 13147697.76 16514278.35

5. Net profit (“-” for net loss) 70695847.98 91494239.43

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net loss) 70695847.98 91494239.43

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

68241726.3395759162.05

parent

5.2.1 Net profit attributable to non-controlling interests 2454121.65 -4264922.62

6. Other comprehensive income net of tax 3424145.94 -26786154.06

Attributable to owners of the Company as the parent 3424145.94 -26786154.06

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 3424145.94 -26786154.06

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 foreign

3630756.31-26687109.42

currency-denominated financial statements

6.2.7 Other -206610.37 -99044.64

Attributable to non-controlling interests

7. Total comprehensive income 74119993.92 64708085.37

Attributable to owners of the Company as the parent 71665872.27 68973007.99

Attributable to non-controlling interests 2454121.65 -4264922.62

8Lu Thai Textile Co. Ltd. First Quarterly Report 2024

8. Earnings per share

8.1 Basic earnings per share 0.08 0.11

8.2 Diluted earnings per share 0.08 0.10

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 Keming

The Company’s financial manager: Zhang Keming

3. Consolidated Cash Flow Statement

Unit: RMB

Item Q1 2024 Q1 2023

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 1328838566.22 1395297566.56

Tax and levy rebates 21402045.84 40085910.13

Cash generated from other operating activities 11744013.26 56881830.64

Subtotal of cash generated from operating activities 1361984625.32 1492265307.33

Payments for commodities and services 731355216.01 987058521.38

Cash paid to and for employees 450450825.71 471044601.37

Taxes and levies paid 44309736.36 40258178.31

Cash used in other operating activities 42473756.88 30693179.21

Subtotal of cash used in operating activities 1268589534.96 1529054480.27

Net cash generated from/used in operating activities 93395090.36 -36789172.94

2. Cash flows from investing activities:

Proceeds from disinvestment 235961000.00 418000000.00

Return on investment 819660.94 1323008.67

Net proceeds from the disposal of fixed assets intangible assets

331930.00303764.22

and other long-lived assets

Net proceeds from the disposal of subsidiaries and other business

units

Cash generated from other investing activities 50607322.66 16101451.88

Subtotal of cash generated from investing activities 287719913.60 435728224.77

Payments for the acquisition of fixed assets intangible assets

66655751.15129897146.31

and other long-lived assets

Payments for investments 435971092.97 763871013.14

Cash used in other investing activities 385900598.02 75148727.93

Subtotal of cash used in investing activities 888527442.14 968916887.38

Net cash generated from/used in investing activities -600807528.54 -533188662.61

3. Cash flows from financing activities:

Borrowings received 936546509.09 276173678.66

Cash generated from other financing activities

9Lu Thai Textile Co. Ltd. First Quarterly Report 2024

Subtotal of cash generated from financing activities 936546509.09 276173678.66

Repayment of borrowings 402316763.17 120706753.67

Interest and dividends paid 10844369.84 7340755.36

Including: Dividends paid by subsidiaries to non-controlling

interests

Cash used in other financing activities 42621048.24 4773203.00

Subtotal of cash used in financing activities 455782181.25 132820712.03

Net cash generated from/used in financing activities 480764327.84 143352966.63

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

-1584581.28-11540604.60

equivalents

5. Net increase in cash and cash equivalents -28232691.62 -438165473.52

Add: Cash and cash equivalents beginning of the period 1353615305.93 1822897270.16

6. Cash and cash equivalents end of the period 1325382614.31 1384731796.64

(II) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation

of the New Accounting Standards Implemented since 2024

□ Applicable □ Not applicable

(III) 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.Board of Director

Lu Thai Textile Co. Ltd.

27 April 2024

10