Lu Thai Textile Co. Ltd. Third Quarterly Report 2023

Stock Code: 000726 200726 Stock Name: LTTC LTTC-B Announcement No. 2023-086

Bond Code: 127016 Bond Name: LTTC Convertible Bonds

LU THAI TEXTILE CO. LTD.THIRD QUARTERLY REPORT 2023

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

Q3 2023 YoY change (%) Q1-Q3 2023 YoY change (%)

Operating revenue (RMB) 1502888352.91 -19.89% 4343379615.38 -16.58%

Net profit attributable to the listed company’s

shareholders (RMB) 113464972.86 -62.43% 335112971.01 -51.85%

Net profit attributable to the listed company’s

shareholders before exceptional gains and 110981395.05 -65.54% 302791256.99 -55.97%

losses (RMB)

Net cash generated from/used in operating

activities (RMB) — — 160657427.31 -77.96%

Basic earnings per share (RMB/share) 0.13 -62.86% 0.39 -51.25%

Diluted earnings per share (RMB/share) 0.13 -55.17% 0.36 -47.06%

Weighted average return on equity (%) 1.23% -2.25% 3.65% -4.60%

1Lu Thai Textile Co. Ltd. Third Quarterly Report 2023

30 September 2023 31 December 2022 Change (%)

Total assets (RMB) 13476324424.60 13351097602.03 0.94%

Equity attributable to the listed company’s

shareholders (RMB) 9273864621.65 9014156872.71 2.88%

(II) Exceptional Gains and Losses

□ Applicable □ Not applicable

Unit: RMB

Item Q3 2023 Q1-Q3 2023 Note

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

allowance write-offs) -4612199.80 -4698654.99

Government grants through profit or loss (exclusive of government grants

continuously given in the Company’s ordinary course of business at fixed 2942562.49 30750901.56

quotas or amounts as per the 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 assets (exclusive of the effective 1362912.16 7023017.21

portion of hedges that arise in the Company’s ordinary course of business)

Reverse of provision for impairment of accounts receivable individually

conducting impairment test 66352.52 2348289.65

Non-operating income and expense other than the above 2410405.43 3858991.82

Less: Income tax effects 1018270.70 7950754.57

Non-controlling interests effects (net of tax) -1331815.71 -989923.34

Total 2483577.81 32321714.02 --

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 YoY Change

Main reason for change

(%)

Q3 2023:

Net profit attributable to the listed company’s

-62.43

shareholders

Decreased sales volume of fabric

Net profit attributable to the listed company’s

-65.54

shareholders before exceptional gains and losses

Basic earnings per share -62.86

Decreased net profit in Q3 2023

Diluted earnings per share -55.17

Q1-Q3 2023:

Net profit attributable to the listed company’s Decreased sales volume of fabric and increased cost of

-51.85

shareholders sales

2Lu Thai Textile Co. Ltd. Third Quarterly Report 2023

Net profit attributable to the listed company’s

-55.97

shareholders before exceptional gains and losses

Decreased proceeds from sale of commodities and

Net cash generated from/used in operating activities -77.96

rendering of services

Basic earnings per share -51.25

Decreased net profit in Q1-Q3 2023

Diluted earnings per share -47.06

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 preferred shareholders with resumed

Number of ordinary shareholders at the period-end 50588 0

voting rights at the period-end (if any)

Top 10 shareholders

Shareh

Nature of Shares in pledge marked or frozen

olding Total shares Restricted

Name of shareholder sharehold

percent held shares held

er Status Shares

age

Domestic

non-state-

Zibo Lucheng Textile Investment Co.owned

Ltd. 16.25% 140353583 0

corporatio

n

Foreign

Tailun (Thailand) Textile Co. Ltd. corporatio 13.69% 118232400 0

n

State-

Central Huijin Assets Management Co. owned

Ltd. corporatio 2.30% 19884100 0

n

National Social Security Fund Portfolio

Other

4131.64%141900510

ICBC Credit Suisse Innovation Power

Other 1.38% 11910000 0

Stock Type Securities Investment Fund

ICBC Credit Suisse Selected Balanced

Other 0.84% 7230000 0

Mixed Securities Investment Fund

FEDERATED HERMES GLOBAL

INVESTMENT FD (CAYMAN) Foreign

MASTER SPC OBOAFTAO legal 0.72% 6200183 0

FEDERATED HERMES EMG ASIA person

EQUITY FD MASTER S.P.Dacheng China Securities Asset

Other 0.60% 5144200 0

Management Plan

Dongfanghong Dingyuan 3-Month Fixed

Term Open Mixed Initiating Securities Other 0.57% 4900100 0

Investment Fund

GF China Securities Asset Management

Other 0.56% 4833300 0

Plan

Top 10 unrestricted shareholders

Shares by type and number

Name of shareholder Unrestricted shares held

Type Shares

RMB-

Zibo Lucheng Textile Investment Co. Ltd. 140353583 denominated 140353583

ordinary stock

3Lu Thai Textile Co. Ltd. Third Quarterly Report 2023

Domestically

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

stock

RMB-

Central Huijin Assets Management Co. Ltd. 19884100 denominated 19884100

ordinary stock

RMB-

National Social Security Fund Portfolio 413 14190051 denominated 14190051

ordinary stock

RMB-

ICBC Credit Suisse Innovation Power Stock Type

11910000 denominated 11910000

Securities Investment Fund ordinary stock

RMB-

ICBC Credit Suisse Selected Balanced Mixed Securities

7230000 denominated 7230000

Investment Fund ordinary stock

FEDERATED HERMES GLOBAL INVESTMENT FD

Domestically

(CAYMAN) MASTER SPC OBOAFTAO

6200183 listed foreign 6200183

FEDERATED HERMES EMG ASIA EQUITY FD stock

MASTER S.P.RMB-

Dacheng China Securities Asset Management Plan 5144200 denominated 5144200

ordinary stock

RMB-

Dongfanghong Dingyuan 3-Month Fixed Term Open

4900100 denominated 4900100

Mixed Initiating Securities Investment Fund ordinary stock

RMB-

GF China Securities Asset Management Plan 4833300 denominated 4833300

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

the second largest shareholder as well as sponsor of foreign capital of the

Related or acting-in-concert parties among 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 trading (if any) Naught

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

□Applicable □ Not applicable

III Other Significant Events

□ Applicable □ Not applicable

The Company held the First Extraordinary General Meeting of 2023 on 6 July 2023 where the Proposal on Repurchase of

Domestically Listed Foreign Shares (B-shares) was approved and disclosed the Report on Repurchase of Domestically Listed

Foreign Shares (B-shares) on 7 July 2023. On 21 August 2023 the Company carried out the first repurchase. As of 30 September

2023 the Company had repurchased a total of 20883507 B-shares (or 2.42% of the Company’s total share capital) by way of

centralized bidding. With the highest repurchase price being HKD4.73/share and the lowest being HKD4.53/share the total payment

for this repurchase plan was HKD98007260.39 (inclusive of commissions and alike).

4Lu Thai Textile Co. Ltd. Third Quarterly Report 2023

IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Lu Thai Textile Co. Ltd.

30 September 2023

Unit: RMB

Item 30 September 2023 1 January 2023

Current assets:

Monetary assets 1123765183.60 2067768253.97

Held-for-trading financial assets 963968116.16 267695159.48

Derivative financial assets

Notes receivable 245128865.70 168755715.84

Accounts receivable 569549816.69 660427526.19

Receivables financing 17060057.34 11208304.78

Prepayments 107659937.81 95021598.32

Other receivables 31991728.90 89855659.99

Including: Interest receivable

Dividends receivable 18563298.39

Inventories 2320596612.35 2107849708.33

Other current assets 118480837.77 76847903.07

Total current assets 5498201156.32 5545429829.97

Non-current assets:

Long-term equity investments 189776161.84 184168625.69

Investments in other equity

instruments

Other non-current financial assets 89080000.00 337110000.00

Investment property 19803836.54 20460935.21

Fixed assets 5601352580.33 5807847850.67

Construction in progress 945643094.37 199943501.73

Right-of-use assets 479479004.42 481420505.31

Intangible assets 345389461.66 352889578.06

Development costs

Goodwill 20563803.29 20563803.29

Long-term prepaid expense 2978651.12 2948981.97

Deferred income tax assets 143640247.16 155774523.25

Other non-current assets 140416427.55 242539466.88

Total non-current assets 7978123268.28 7805667772.06

Total assets 13476324424.60 13351097602.03

Current liabilities:

Short-term borrowings 579930446.20 518946415.96

Held-for-trading financial liabilities 35492510.01 4276929.70

Derivative financial liabilities

Notes payable 55450000.00

Accounts payable 220408264.53 246588463.74

5Lu Thai Textile Co. Ltd. Third Quarterly Report 2023

Advances from customers

Contract liabilities 178207218.40 206879672.53

Employee benefits payable 285580466.87 330027159.72

Taxes and levies payable 31675948.96 31483442.06

Other payables 50352521.20 83357296.71

Including: Interest payable

Dividends payable 441113.64 441113.64

Current portion of non-current

liabilities 196288854.12 307921837.35

Other current liabilities 65175380.22 66889025.17

Total current liabilities 1643111610.51 1851820242.94

Non-current liabilities:

Long-term borrowings 261710274.16 186431096.24

Bonds payable 1463278946.78 1438162231.27

Lease liabilities 90863511.11 98501303.83

Long-term payables

Long-term employee benefits payable 57417997.65 57417997.65

Provisions

Deferred income 152025077.46 159615037.36

Deferred income tax liabilities 154682285.28 151243432.80

Other non-current liabilities

Total non-current liabilities 2179978092.44 2091371099.15

Total liabilities 3823089702.95 3943191342.09

Owners’ equity:

Share capital 863607634.00 887633151.00

Other equity instruments 71383728.77 71383830.75

Capital reserves 333751501.28 395872135.71

Less: Treasury stock 118417533.20 154396198.73

Other comprehensive income 167636242.15 107628898.09

Specific reserve 1115773.65

Surplus reserves 1215124336.54 1215124336.54

General reserve

Retained earnings 6739662938.46 6490910719.35

Total equity attributable to owners of the

Company as the parent 9273864621.65 9014156872.71

Non-controlling interests 379370100.00 393749387.23

Total owners’ equity 9653234721.65 9407906259.94

Total liabilities and owners’ equity 13476324424.60 13351097602.03

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

The Company’s financial manager: Zhang Keming

2. Consolidated Income Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2023 Q1~Q3 2022

1. Revenues 4343379615.38 5206422889.50

6Lu Thai Textile Co. Ltd. Third Quarterly Report 2023

Including: Operating revenue 4343379615.38 5206422889.50

2. Costs and expenses 3961187521.18 4261512476.47

Including: Cost of sales 3367798201.96 3850817744.47

Taxes and levies 51710880.20 55064913.87

Selling expense 99779947.00 91979470.34

Administrative expense 282144753.70 281331829.22

Development costs 189722944.72 185127476.13

Finance costs -29969206.40 -202808957.56

Including: Interest expense 62229138.75 68286145.08

Interest income 38423491.50 37133045.19

Add: Other income 30625776.56 42259767.72

Return on investment (“-” for loss) 55261510.68 -7289966.58

Including: Share of profit or loss of joint ventures and

associates 5607536.15 -9771373.43

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) -42630957.32 -37118426.22

Credit impairment loss (“-” for loss) 9173784.96 -7461737.20

Asset impairment loss (“-” for loss) -73776454.27 -148491843.12

Asset disposal income (“-” for loss) -4600817.87 1214440.32

3. Operating profit (“-” for loss) 356244936.94 788022647.95

Add: Non-operating income 6999573.15 5681260.63

Less: Non-operating expense 3238418.45 3045887.88

4. Gross profit (“-” for loss) 360006091.64 790658020.70

Less: Income tax expense 39272407.86 85120535.89

5. Net profit (“-” for net loss) 320733683.78 705537484.81

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net loss) 320733683.78 705537484.81

5.1.2 Net profit from discontinued operations (“-” for net loss)

5.2 By ownership

5.2.1 Net profit attributable to shareholders of the Company as

the parent (“-” for net loss) 335112971.01 695966469.00

5.2.1 Net profit attributable to non-controlling interests (“-” for

net loss) -14379287.23 9571015.81

6. Other comprehensive income net of tax 60007344.06 174235058.73

Attributable to owners of the Company as the parent 60007344.06 174235058.73

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 60007344.06 174235058.73

6.2.1 Other comprehensive income that will be reclassified to

profit or loss under the equity method

7Lu Thai Textile Co. Ltd. Third Quarterly Report 2023

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

currency-denominated financial statements 60321769.50 174147637.94

6.2.7 Other -314425.44 87420.79

Attributable to non-controlling interests

7. Total comprehensive income 380741027.84 879772543.54

7.1 Attributable to owners of the Company as the parent 395120315.07 870201527.73

7.2 Attributable to non-controlling interests -14379287.23 9571015.81

8. Earnings per share

8.1 Basic earnings per share 0.39 0.80

8.2 Diluted earnings per share 0.36 0.68

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 for Q1~Q3

Unit: RMB

Item Q1~Q3 2023 Q1~Q3 2022

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 4082732904.05 4948795995.75

Tax and levy rebates 111908970.46 139638698.35

Cash generated from other operating activities 88268626.57 39167849.67

Subtotal of cash generated from operating activities 4282910501.08 5127602543.77

Payments for commodities and services 2671747269.74 2961997864.79

Cash paid to and for employees 1220030753.31 1174509559.57

Taxes and levies paid 98333908.79 147611564.29

Cash used in other operating activities 132141141.93 114394732.80

Subtotal of cash used in operating activities 4122253073.77 4398513721.45

Net cash generated from/used in operating activities 160657427.31 729088822.32

2. Cash flows from investing activities:

Proceeds from disinvestment 2435012962.14 73323521.50

Return on investment 28169612.15 30382568.02

Net proceeds from the disposal of fixed assets intangible assets and

other long-lived assets 5799244.29 6734473.05

Net proceeds from the disposal of subsidiaries and other business

units

Cash generated from other investing activities 85031721.32 41312947.23

Subtotal of cash generated from investing activities 2554013539.90 151753509.80

Payments for the acquisition of fixed assets intangible assets and

other long-lived assets 544637761.00 249612464.61

Payments for investments 2947560711.64 380000000.00

Cash used in other investing activities 18025985.58 172976756.21

Subtotal of cash used in investing activities 3510224458.22 802589220.82

8Lu Thai Textile Co. Ltd. Third Quarterly Report 2023

Net cash generated from/used in investing activities -956210918.32 -650835711.02

3. Cash flows from financing activities:

Capital contributions received 19086927.80

Including: Capital contributions by non-controlling interests to

subsidiaries

Borrowings received 998315156.40 1147983807.40

Cash generated from other financing activities

Subtotal of cash generated from financing activities 998315156.40 1167070735.20

Repayment of borrowings 955264496.55 1444841681.89

Interest and dividends paid 107775332.89 97315472.76

Including: Dividends paid by subsidiaries to non-controlling

interests

Cash used in other financing activities 111329581.84 66765540.66

Subtotal of cash used in financing activities 1174369411.28 1608922695.31

Net cash generated from/used in financing activities -176054254.88 -441851960.11

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

equivalents 11527014.35 83690400.22

5. Net increase in cash and cash equivalents -960080731.54 -279908448.59

Add: Cash and cash equivalents beginning of the period 1822897270.16 1970006884.89

6. Cash and cash equivalents end of the period 862816538.62 1690098436.30

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

the New Accounting Standards Implemented since 2023

□ 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.

28 October 2023

9