Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
LU THAI TEXTILE CO. LTD.INTERIM FINANCIAL STATEMENTS 2025
August 2025
1Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Financial Statements
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor
□ Yes □ No
They are unaudited by such an auditor.II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Lu Thai Textile Co. Ltd.June 30 2025
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary capitals 2139114115.40 2055856788.37
Held-for-trading financial assets 1049351158.38 693972672.64
Derivative financial assets
Notes receivable 39030160.44 51339990.35
Accounts receivable 747239605.77 849168539.27
Receivables financing 37499801.20 10184900.59
Prepayments 132539783.79 94340345.68
Other receivables 24152797.11 23107489.38
Including: Interest receivable
Dividend receivable
Inventories 2034200313.46 2019884406.30
Current portion of non-current assets 156297393.15 154176585.64
Other current assets 20328326.17 59034547.73
Total current assets 6379753454.87 6011066265.95
Non-current assets:
Long-term equity investments 107611314.66 120084271.29
Investments in other equity instruments
Other non-current financial assets 82800000.00 82800000.00
Investment property 18224212.48 18675533.63
Fixed assets 5814725044.82 6053755987.08
Construction in progress 134284190.34 95026709.37
2Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Right-of-use assets 457019477.13 470238928.19
Intangible assets 327890760.99 333384747.50
Goodwill 20563803.29 20563803.29
Long-term deferred expenses 3550288.75 5634560.27
Deferred income tax assets 138328342.11 148530519.94
Other non-current assets 392586573.69 569954322.70
Total non-current assets 7497584008.26 7918649383.26
Total assets 13877337463.13 13929715649.21
Current liabilities:
Short-term loans 769528289.22 849686824.33
Held-for-trading financial liabilities 836220.67 15858713.22
Accounts payable 174248558.77 272079091.51
Advances from customers
Contract liabilities 157554001.78 191551003.79
Payroll payable 235283537.70 301227361.89
Taxes payable 44600830.71 57261948.01
Other payables 95144804.38 17437799.60
Including: Interest payable
Dividends payable 75441113.64 441113.64
Current portion of non-current
1539699402.2927788571.75
liabilities
Other current liabilities 25008287.11 42829460.18
Total current liabilities 3041903932.63 1775720774.28
Non-current liabilities:
Long-term borrowings 408154596.91 396244110.21
Bonds payable 1509420449.46
Lease liabilities 80382387.04 91353320.80
Long-term payables
Long-term payroll payable 58494991.36 58494991.36
Provisions
Deferred income 142360938.77 145395121.11
Deferred income tax liabilities 120638187.77 131519037.79
Other non-current liabilities
Total non-current liabilities 810031101.85 2332427030.73
Total liabilities 3851935034.48 4108147805.01
Owners’ equity:
Share capital 817306422.00 817306010.00
Other equity instruments 71383259.63 71383438.11
Including: Preferred shares
3Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Perpetual bonds
Capital reserves 178746397.11 178518667.31
Less: Treasury stock
Other comprehensive income 155094789.13 166925985.26
Specific reserve 4210110.35
Surplus reserves 1271429282.44 1271429282.44
General reserve
Retained earnings 7211650131.88 6933165006.16
Total equity attributable to owners of
9709820392.549438728389.28
the Company as the parent
Equity of non-controlling interests 315582036.11 382839454.92
Total owners’ equity 10025402428.65 9821567844.20
Total liabilities and owners’ equity 13877337463.13 13929715649.21
Legal representative: Liu Zibin Chief Accountant: Zhang Keming Financial Manager: Zhang Keming
2. Balance Sheet of the Parent Company
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary capitals 1353726696.69 1098738844.86
Held-for-trading financial assets 467547982.90 348853051.29
Derivative financial assets 0.00 0.00
Notes receivable 26216718.14 34955445.32
Accounts receivable 382599376.57 381343801.66
Receivables financing 14489532.18 8604909.79
Prepayments 28724594.76 37339639.22
Other receivables 1556331125.47 1444344599.59
Including: Interest receivable
Dividend receivable 225000000.00
Inventories 884750161.11 833923667.33
Including: Data resources
Current portion of non-current assets 156297393.15 154176585.64
Other current assets 1640361.86 1285523.29
Total current assets 4872323942.83 4343566067.99
Non-current assets:
Long-term equity investments 3873729258.91 3886201497.79
Investments in other equity instruments
Other non-current financial assets 70800000.00 70800000.00
Investment property 59481373.20 61235932.80
4Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Fixed assets 1756666692.45 1829970463.91
Construction in progress 30660219.90 25572141.50
Right-of-use assets 85331620.88 94200828.47
Intangible assets 188535711.72 191804122.33
Long-term deferred expenses 36284.53 253990.93
Deferred income tax assets 78218616.25 83559877.27
Other non-current assets 352206076.93 502059650.58
Total non-current assets 6495665854.77 6745658505.58
Total assets 11367989797.60 11089224573.57
Current liabilities:
Short-term loans
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 0.00 60000000.00
Accounts payable 172299986.65 202868261.19
Advances from customers
Contract liabilities 49995098.60 62755259.28
Payroll payable 153523012.31 196441126.83
Taxes payable 25774923.78 38807426.46
Other payables 16009050.73 14071692.51
Including: Interest payable
Dividends payable 441113.64 441113.64
Liabilities held for sale
Current portion of non-current
1537652137.1426337442.97
liabilities
Other current liabilities 20314072.96 31411042.17
Total current liabilities 1975568282.17 632692251.41
Non-current liabilities:
Long-term borrowings 408154596.91 396244110.21
Bonds payable 1509420449.46
Including: Preferred shares
Perpetual bonds
Lease liabilities 79739796.30 88480054.92
Long-term payables
Long-term payroll payable 58494991.36 58494991.36
Provisions
Deferred income 108286441.16 110138851.32
Deferred income tax liabilities 86813230.24 98766520.96
Other non-current liabilities
5Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Total non-current liabilities 741489055.97 2261544978.23
Total liabilities 2717057338.14 2894237229.64
Owners’ equity:
Share capital 817306422.00 817306010.00
Other equity instruments 71383259.63 71383438.11
Including: Preferred shares
Perpetual bonds
Capital reserves 246282690.66 246054960.86
Less: Treasury stock 0.00 0.00
Other comprehensive income -33510.92 -35886.10
Specific reserve 33042.22 0.00
Surplus reserves 1268320542.80 1268320542.80
Retained earnings 6247640013.07 5791958278.26
Total owners’ equity 8650932459.46 8194987343.93
Total liabilities and owners’ equity 11367989797.60 11089224573.57
3. Consolidated Income Statement
Unit: RMB
Item H1 2025 H1 2024
1. Revenue 2827110139.70 2830488685.61
Including: Operating revenue 2827110139.70 2830488685.61
2. Costs and expenses 2525003547.23 2502834949.04
Including: Cost of sales 2168474896.26 2131993492.13
Taxes and surcharges 31239434.94 29125385.82
Selling expense 69698089.77 63286721.28
Administrative expense 162947077.39 158805160.69
R&D expense 100446619.98 115374597.19
Financial expenses -7802571.11 4249591.93
Including: Interest expense 47165800.27 48731472.34
Interest income 34380042.79 24797577.48
Add: Other income 11191654.96 14929113.83
Return on investment (“-” for loss) 199543864.41 -3289446.38
Including: Share of profit or loss of joint ventures and associates 1393710.04 8619094.53
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) -53613179.42 -112539827.27
Credit impairment loss (“-” for loss) -6567343.20 587454.42
6Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Asset impairment loss (“-” for loss) -33600593.45 -34719445.19
Asset disposal income (“-” for loss) -459023.14 -232868.16
3. Operating profit (“-” for loss) 418601972.63 192388717.82
Add: Non-operating income 8777411.25 2878019.80
Less: Non-operating expense 2915155.95 2366685.20
4. Profit before tax (“-” for loss) 424464227.93 192900052.42
Less: Income tax expense 56505920.02 18864805.79
5. Net profit (“-” for net loss) 367958307.91 174035246.63
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 367958307.91 174035246.63
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
360215726.72169559969.54
the parent (“-” for net loss)
5.2.1 Net profit attributable to non-controlling interests (“-” for
7742581.194475277.09
net loss)
6. Other comprehensive income net of tax -11831196.13 9376489.57
Attributable to owners of the Company as the parent -11831196.13 9376489.57
6.1 Other comprehensive income that will not be reclassified to
profit or loss
6.1.1 Changes caused by re-measurements 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 Other comprehensive income that will be reclassified to
-11831196.139376489.57
profit or loss
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 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for investments in other
debt obligations
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of foreign
-11771402.389340942.61
currency-denominated financial statements
6.2.7 Other -59793.75 35546.96
Other comprehensive income attributable to non-controlling
interests
7. Total comprehensive income 356127111.78 183411736.20
Attributable to owners of the parent company 348384530.59 178936459.11
Attributable to non-controlling interests 7742581.19 4475277.09
7Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
8. Earnings per share
8.1 Basic earnings per share 0.44 0.21
8.2 Diluted earnings per share 0.40 0.19
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 Chief Accountant: Zhang Keming Financial Manager: Zhang Keming
4. Income Statement of the Parent Company
Unit: RMB
Item H1 2025 H1 2024
1. Operating revenue 1380651274.50 1468386291.35
Less: Cost of sales 1047508741.72 1111556899.05
Taxes and surcharges 19174516.84 18109295.49
Selling expense 39895772.35 41139342.57
Administrative expense 89681738.86 96570932.90
R&D expense 74371809.78 79830730.20
Financial expenses 5147001.10 -3675230.34
Including: Interest expense 27250219.49 27601294.75
Interest income 23939018.62 19298232.20
Add: Other income 5875520.30 11824461.76
Return on investment (“-” for loss) 527782025.32 14834483.02
Including: Share of profit or loss of joint ventures and joint
1393710.048619094.53
ventures
Income from the derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -81239371.48 -73211657.14
Credit impairment loss (“-” for loss) 829519.78 2881097.53
Asset impairment loss (“-” for loss) -988284.62 -2519219.13
Asset disposal income (“-” for loss) -230391.26 1256454.63
2. Operating profit (“-” for loss) 556900711.89 79919942.15
Add: Non-operating income 5108491.01 2179686.89
Less: Non-operating expense 140072.91 56573.70
3. Profit before tax (“-” for loss) 561869129.99 82043055.34
Less: Income tax expense 24456794.18 5350341.11
4. Net profit (“-” for net loss) 537412335.81 76692714.23
4.1 Net profit from continuing operations (“-” for net loss) 537412335.81 76692714.23
4.2 Net profit from discontinued operations (“-” for net loss)
5. Other comprehensive income net of tax 2375.18 11090.23
6.1 Other comprehensive income that will not be reclassified to
8Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
profit or loss
6.1.1 Changes caused by re-measurements 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 Other comprehensive income that will be reclassified to
2375.1811090.23
profit or loss
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 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for investments in other
debt obligations
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of foreign
currency-denominated financial statements
6.2.7 Other 2375.18 11090.23
6. Total comprehensive income 537414710.99 76703804.46
7. Earnings per share
8.1 Basic earnings per share 0.66 0.09
8.2 Diluted earnings per share 0.58 0.10
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2025 H1 2024
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 2803150193.86 2870197776.21
Tax rebates 36500294.08 34473335.94
Cash generated from other operating activities 25319329.63 15241585.40
Subtotal of cash generated from operating activities 2864969817.57 2919912697.55
Payments for commodities and services 1542792623.46 1495937361.55
Cash paid to and for employees 839987267.54 815258158.98
Taxes paid 115718037.97 84393030.40
Cash used in other operating activities 102478247.64 72902493.93
Subtotal of cash used in operating activities 2600976176.61 2468491044.86
Net cash flow from operating activities 263993640.96 451421652.69
2. Cash flows from investing activities:
Proceeds from disinvestment 3896975363.58 366961000.00
9Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Return on investment 201151635.48 1477671.32
Net proceeds from the disposal of fixed assets intangible assets
8019136.005007425.81
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 286072065.68 55092528.36
Subtotal of cash generated from investing activities 4392218200.74 428538625.49
Payments for the acquisition of fixed assets intangible assets and
63023782.20133899391.95
other long-lived assets
Payments for investments 4273214000.00 466000000.00
Cash used in other investing activities 52675673.76 187380600.00
Subtotal of cash used in investing activities 4388913455.96 787279991.95
Net cash generated from/used in investing activities 3304744.78 -358741366.46
3. Cash flows from financing activities:
Capital contributions received
Including: Cash received by subsidiaries from capital
contributions of minority shareholders
Borrowings raised 795615516.62 1312631494.80
Cash generated from other financing activities
Subtotal of cash generated from financing activities 795615516.62 1312631494.80
Cash paid for debt repayment 858948490.13 919859118.54
Cash paid for distribution of dividend profit or payment of
123410101.61149684828.86
interest
Including: Dividends paid by subsidiaries to non-controlling
interests
Cash used in other financing activities 9250108.12 47144251.24
Subtotal of cash used in financing activities 991608699.86 1116688198.64
Net cash generated from/used in financing activities -195993183.24 195943296.16
4. Effect of foreign exchange rates changes on cash and cash
27327178.498936611.65
equivalents
5. Net increase in cash and cash equivalents 98632380.99 297560194.04
Add: Opening balance of cash and cash equivalents 1371412259.52 1353615305.93
6. Closing balance of cash and cash equivalents 1470044640.51 1651175499.97
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item H1 2025 H1 2024
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 1290886102.43 1488240200.81
Tax rebates 6773725.66 6378709.40
Cash generated from other operating activities 22231794.27 19682005.66
Subtotal of cash generated from operating activities 1319891622.36 1514300915.87
Payments for commodities and services 878878825.92 832282435.46
10Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Cash paid to and for employees 395452125.89 404265209.55
Taxes paid 66045293.01 42371401.25
Cash used in other operating activities 57536555.13 41833676.11
Subtotal of cash used in operating activities 1397912799.95 1320752722.37
Net cash flow from operating activities -78021177.59 193548193.50
2. Cash flows from investing activities:
Proceeds from disinvestment 2082614651.22 320961000.00
Return on investment 299534627.43 5054535.92
Net proceeds from the disposal of fixed assets intangible assets
19406643.41798733.70
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
0.000.00
units
Cash generated from other investing activities 1163480433.41 1388052365.00
Subtotal of cash generated from investing activities 3565036355.47 1714866634.62
Payments for the acquisition of fixed assets intangible assets and
15352948.1514125317.07
other long-lived assets
Payments for investments 2259738000.00 420000000.00
Net payments for the acquisition of subsidiaries and other
0.000.00
business units
Cash used in other investing activities 913402246.98 1316340560.00
Subtotal of cash used in investing activities 3188493195.13 1750465877.07
Net cash generated from/used in investing activities 376543160.34 -35599242.45
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 20000000.00 763875061.70
Cash generated from other financing activities 92001000.00
Subtotal of cash generated from financing activities 20000000.00 855876061.70
Cash paid for debt repayment 8463198.74 387245597.90
Cash paid for distribution of dividend profit or payment of
111038442.44137445683.64
interest
Cash used in other financing activities 9220803.28 229318998.82
Subtotal of cash used in financing activities 128722444.46 754010280.36
Net cash generated from/used in financing activities -108722444.46 101865781.34
4. Effect of foreign exchange rates changes on cash and cash
5369627.731982612.10
equivalents
5. Net increase in cash and cash equivalents 195169166.02 261797344.49
Add: Opening balance of cash and cash equivalents 507628886.80 765705926.26
6. Closing balance of cash and cash equivalents 702798052.82 1027503270.75
7. Consolidated Statements of Changes in Owners’ Equity
11Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
H1 2025
Unit: RMB
H1 2025
Equity attributable to owners of the Company as the parent company
Equity of
Item Other equity instruments Other TotalLess: non-
Share Capital comprehe Specific Surplus General Retained owners’
Preferred Perpetual Treasury Others Subtotal
controllin
capital Others reserves nsive reserve reserves reserve earnings g interests
equity
shares bonds stock income
1. Ending balances of the 8173060 7138343 1785186 1669259 1271429 6933165 9438728 3828394 9821567
prior year 10.00 8.11 67.31 85.26 282.44 006.16 389.28 54.92 844.20
Add: Adjustments for
changed accounting
policies
Adjustments for
corrections of previous
errors
Others
2. Beginning balances of 8173060 7138343 1785186 1669259 1271429 6933165 9438728 3828394 9821567
the year 10.00 8.11 67.31 85.26 282.44 006.16 389.28 54.92 844.20
--
3. Increase/decrease in the 227729.8 4210110. 2784851 2710920 2038345
412.00-178.4811831196725741
period (“-” for decrease) 0 35 25.72 03.26 84.45
6.138.81
-
3.1 Total comprehensive 3602157 3483845 7742581. 3561271
1183119
income 26.72 30.59 19 11.78
6.13
3.2 Capital increased and 227729.8 227963.3 227963.3
412.00-178.48
reduced by owners 0 2 2
3.2.1 Ordinary shares
412.003374.763786.763786.76
increased by shareholders
3.2.2 Capital increased by
holders of other equity
instruments
3.2.3 Share-based 224307.7 224307.7 224307.7
payments included in 5 5 5
12Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
owners’ equity
3.2.4 Other -178.48 47.29 -131.19 -131.19
----
3.3 Profit distribution 8173060 8173060 7500000 1567306
1.001.000.0001.00
3.3.1 Appropriation to
surplus reserves
3.3.2 Appropriation to
general reserve
----
3.3.3 Appropriation to
8173060817306075000001567306
owners (or shareholders)
1.001.000.0001.00
3.2.4 Other
3.4 Transfers within
owners’ equity
3.4.1 Increase in capital (or
share capital) from capital
reserves
3.4.2 Increase in capital (or
share capital) from surplus
reserves
3.4.3 Loss offset by surplus
reserves
3.4.4 Changes in defined
benefit pension schemes
transferred to retained
earnings
3.4.5 Other comprehensive
income transferred to
retained earnings
3.4.6 Other
4210110.4210110.4210110.
3.5 Specific reserve
353535
3.5.1 Increase in the period 7971427. 7971427. 7971427.
13Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
333333
3761316.3761316.3761316.
3.5.2 Used in the period
989898
3.6 Other
4. Ending balances of the 8173064 7138325 1787463 1550947 4210110. 1271429 7211650 9709820 3155820 1002540
period 22.00 9.63 97.11 89.13 35 282.44 131.88 392.54 36.11 2428.65
H1 2024
Unit: RMB
H1 2024
Equity attributable to owners of the Company as the parent
Non-
Item Other equity instruments Other Retaine TotalLess: controll
Share Preferr Perpetu Capital compre Specific Surplus General d owners’Treasur Others Subtotal ing
capital ed al Others reserves hensive reserve reserves reserve earning equityy stock interests
shares bonds income s
12606676249230896174
1. Balances as at the end 863607 71383 334792 193438 131343 386661
61015.57543.06905.67997.
of the prior year 634.00 677.78 614.76 720.78 141.63 091.90
34078070
Add: Adjustments
for changed accounting
policies
Adjustments
for corrections of
previous errors
Others
12606676249230896174
2. Balances as at the 863607 71383 334792 193438 131343 386661
61015.57543.06905.67997.
beginning of the year 634.00 677.78 614.76 720.78 141.63 091.90
34078070
3. Increase/decrease in - - -
937642567763310718724475276348
the period (“-” for 462427 -86.69 150391 193252
89.5760.32203.06967.5877.09244.67
decrease) 38.00 321.46 660.78
3.1 Total comprehensive 93764 169559 178936 44752 183411
income 89.57 969.54 459.11 77.09 736.20
14Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
-----
3.2 Capital increased and
462427-86.691503911932523381433814
reduced by owners
38.00321.46660.7885.3785.37
----
3.2.1 Ordinary shares
462427153711199954199954
increased by shareholders
38.00878.22616.22616.22
3.2.2 Capital increased
by holders of other equity
instruments
3.2.3 Share-based
332053320533205
payments included in
15.9615.9615.96
owners’ equity
-
193252193252
3.2.4 Other -86.69 40.80 193252
614.89614.89
660.78
---
3.3 Profit distribution 106249 106249 106249
766.48766.48766.48
3.3.1 Appropriation to
surplus reserves
3.3.2 Appropriation to
general reserve
---
3.3.3 Appropriation to
106249106249106249
owners (or shareholders)
766.48766.48766.48
3.2.4 Other
3.4 Transfers within
owners’ equity
3.4.1 Increase in capital
(or share capital) from
capital reserves
3.4.2 Increase in capital
(or share capital) from
surplus reserves
3.4.3 Loss offset by
surplus reserves
15Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
3.4.4 Changes in defined
benefit pension schemes
transferred to retained
earnings
3.4.5 Other
comprehensive income
transferred to retained
earnings
3.4.6 Other
256772567725677
3.5 Specific reserve
60.3260.3260.32
3.5.1 Increase in the 40900 40900 40900
period 00.00 00.00 00.00
152221522215222
3.5.2 Used in the period
39.6839.6839.68
3.6 Other
12606682579302696938
4. Balances as at the end 817364 71383 184401 186060 140719 25677 391136
61015.67746.79873.16242.
of the period 896.00 591.09 293.30 .00 631.20 60.32 368.99
34133837
8. Statements of Changes in Owners’ Equity of the Parent Company
H1 2025
Unit: RMB
H1 2025
Other equity instruments Other
Item Less: Total
Perpetu Capital comprehen Specific Surplus RetainedShare capital Preferred Treasury Others owners’
al Others reserves sive reserve reserves earnings
shares stock equity
bonds income
1. Ending balances of the 71383438 24605496 1268320 5791958 8194987
817306010.00-35886.10
prior year .11 0.86 542.80 278.26 343.93
Add: Adjustments
16Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
for changed accounting
policies
Adjustments for
corrections of previous
errors
Others
2. Beginning balances of 71383438 24605496 1268320 5791958 8194987
817306010.00-35886.10
the year .11 0.86 542.80 278.26 343.93
3. Increase/decrease in the 45568173 45594511
412.00-178.48227729.802375.1833042.22
period (“-” for decrease) 4.81 5.53
3.1 Total comprehensive 53741233 53741471
2375.18
income 5.81 0.99
3.2 Capital increased and
412.00-178.48227729.80227963.32
reduced by owners
3.2.1 Ordinary shares
412.003374.763786.76
increased by shareholders
3.2.2 Capital increased by
holders of other equity
instruments
3.2.3 Share-based
payments included in 224307.75 224307.75
owners’ equity
3.2.4 Other -178.48 47.29 -131.19
--
3.3 Profit distribution 81730601 81730601.00.00
3.3.1 Appropriation to
surplus reserves
--
3.3.2 Appropriation to
8173060181730601
owners (or shareholders).00.00
3.3.3 Other
3.4 Transfers within
owners’ equity
17Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
3.4.1 Increase in capital
(or share capital) from
capital reserves
3.4.2 Increase in capital
(or share capital) from
surplus reserves
3.4.3 Loss offset by
surplus reserves
3.4.4 Changes in defined
benefit pension schemes
transferred to retained
earnings
3.4.5 Other
comprehensive income
transferred to retained
earnings
3.4.6 Other
3.5 Specific reserve 33042.22 33042.22
3.5.1 Increase in the 1525200. 1525200.
period 00 00
1492157.1492157.
3.5.2 Used in the period
7878
3.6 Other
4. Ending balances of the 71383259 24628269 1268320 6247640 8650932
817306422.00-33510.9233042.22
period .63 0.66 542.80 013.07 459.46
H1 2024
Unit: RMB
H1 2024
Other equity instruments Other
Item Less: TotalShare Capital comprehen Specific Surplus Retained
Treasury Others owners’
capital Preferred Perpetual Others reserves sive reserve reserves earnings
shares bonds stock equityincome
18Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
1. Ending balances of the 8636076 7138367 3961726 1934387 1257552 5923889 8319125
-41439.79
prior year 34.00 7.78 49.00 20.78 275.70 542.37 618.28
Add: Adjustments for
changed accounting policies
Adjustments for
corrections of previous
errors
Others
2. Beginning balances of the 8636076 7138367 3961726 1934387 1257552 5923889 8319125
-41439.79
year 34.00 7.78 49.00 20.78 275.70 542.37 618.28
-----
3. Increase/decrease in the
4624273-86.691503913193252611090.23295570532927447
period (“-” for decrease)
8.0021.4660.782.25.39
3.1 Total comprehensive 7669271 76703804
11090.23
income 4.23 .46
----
3.2 Capital increased and
4624273-86.69150391319325263381485.
reduced by owners
8.0021.4660.7837
---
3.2.1 Ordinary shares
4624273153711819995461
increased by shareholders
8.0078.226.22
3.2.2 Capital increased by
holders of other equity
instruments
3.2.3 Share-based payments 3320515. 3320515.
included in owners’ equity 96 96
-
19325261
3.2.4 Other -86.69 40.80 1932526
4.89
60.78
--
3.3 Profit distribution 1062497 10624976
66.486.48
3.3.1 Appropriation to
surplus reserves
--
3.3.2 Appropriation to 1062497 10624976
19Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
owners (or shareholders) 66.48 6.48
3.3.3 Other
3.4 Transfers within
owners’ equity
3.4.1 Increase in capital (or
share capital) from capital
reserves
3.4.2 Increase in capital (or
share capital) from surplus
reserves
3.4.3 Loss offset by surplus
reserves
3.4.4 Changes in defined
benefit pension schemes
transferred to retained
earnings
3.4.5 Other comprehensive
income transferred to
retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Ending balances of the 8173648 7138359 2457813 186060.0 1257552 5894332 8286198
-30349.56
period 96.00 1.09 27.54 0 275.70 490.12 170.89
20Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
III Company Profile
Lu Thai Textile Co. Ltd. (hereinafter referred to as the “Company”) is a joint venture invested by Zibo Lucheng Textile
Investment Co. Ltd. (originally named Zibo Lucheng Textile Co. Ltd hereinafter referred to as Lucheng Textile) and Thailand
Tailun Textile Co. Ltd. In February 1993 it was restructured into a joint-stock company.In July 1997 with the approval of the Securities Committee of the State Council 80000000 foreign shares (B-shares) were listed
domestically. On August 19 1997 it was listed on the Shenzhen Stock Exchange with the B-share stock code being 200726. On
November 24 2000 the CSRC approved the issuance of an additional 50000000 ordinary shares (A-shares) which were listed
on the Shenzhen Stock Exchange on December 25 2000 with the A-share stock code being 000726.After several capital increases and repurchases as at June 30 2025 the Company’s registered capital was RMB817306400.Specifically there were 591180400 A-shares and 226126000 B-shares.The Company’s registered address: No. 61 Luthai Avenue Hi-tech Development Zone Zibo Shandong
The Company’s unified social credit code: 91370300613281175K.The Company’s legal representative: Liu Zibin.The scope of business of the Company and its subsidiaries shall include general projects: Fabric printing and dyeing processing;
garment manufacturing wholesale; procurement of primary agricultural products; power generation and transmission business.The Company’s financial statements and Notes thereof have been approved by the 3rd Meeting of the 11th Board of Directors held
on August 27 2025.IV Basis for Preparation of Financial Statements
1. Preparation Basis
This financial statement is prepared in accordance with the accounting standards for business enterprises and the applicationguide interpretation and other relevant regulations (hereinafter collectively referred to as “Accounting Standards for BusinessEnterprises”) issued by the Ministry of Finance. In addition the Company also disclosed relevant financial information in
accordance with the Regulations on Information Disclosure and Compilation for Companies Public Offering Securities No. 15 -
General Provisions on Financial Report (revised in 2023) issued by China Securities Regulatory Commission.The Company’s accounting is based on the accrual basis. Except for certain financial instruments this financial statement is
measured on the basis of historical cost. If the asset is impaired the corresponding impairment provision shall be made in
accordance with relevant regulations.
2. Going-concern
The financial statements are presented on the basis of continuing operations.V Significant Accounting Policies and Estimates
Specific accounting policies and accounting estimates indicators:
The Company determines income recognition policy according to its production and operation characteristics and the specific
accounting policies are shown in Note V (27).
21Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in compliance with in compliance with the Accounting Standards for
Business Enterprises which factually and completely present the consolidated and the Company’s financial positions as at June
30 2025 business results and cash flows for H1 2025 and other relevant information.
2. Fiscal Year
The Company’s fiscal year starts on January 1 and ends on December 31 of every year according to the Gregorian calendar.
3. Operating Cycle
The Company regards 12 months as an operating cycle.
4. Recording Currency
The Company and its domestic subsidiaries adopt RMB as the recording currency. The Company’s overseas subsidiaries confirm
to adopt HKD and USD as the recording currency according their major economic environment of the operating. When preparing
the financial statements for the Reporting Period the Company adopted RMB as the recording currency.
5. Methods for Determining Materiality Standards and Selection Criteria
□ Applicable □ Not applicable
Item Materiality standards
Significant receivables withdrawal of bad
Individual receivables exceeding 0.3% of total assets
debt provision separately accrued
Significant receivables reversed or recovered
Individual receivables exceeding 0.3% of total assets
during the Reporting Period
Significant written-off of receivables during
Individual receivables exceeding 0.3% of total assets
the Reporting Period
Significant prepayments aging over one year Individual prepayment amounts exceeding 0.3% of total assets
Significant construction in progress Individual investment amounts exceeding 1% of total assets
Significant accounts payable aging over one
Individual accounts payable amounts exceeding 0.3% of total assets
year
A subsidiary whose total assets operating revenue or profit before tax (or
Significant non-wholly-owned subsidiary absolute loss amount) exceeds 10% of the corresponding item in the consolidated
financial statements is considered a significant non-wholly owned subsidiary
Significant investment activity projects Individual investment amounts exceeding 5% of total assets
6. Accounting Treatment for Business Combinations under the Common Control and Not under the
Common Control
(1) Business Combinations under the Same Control
For business combinations under the same control the assets and liabilities of the merged party acquired by the merger party in
the merger shall be measured at the carrying value of the merged party in the consolidated financial statement of the final
controller on the combination date. As for the difference between the carrying value of the merger consideration and carrying
value of the net assets obtained in the merger the Capital reserves shall be adjusted and if the capital reserve is insufficient to
22Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
offset the retained earnings shall be adjusted.Realize business combination under the same control in steps by transaction several times
The assets and liabilities of the combined party acquired by the combining party in the combination shall be measured at the
carrying value of the combined party in the consolidated financial statement of the final controller on the combination date; the
difference between the sum of the carrying value of investment held before combination plus the carrying value newly paid on the
combination date and the carrying value of the net assets acquired in combination is used for adjusting the capital reserve (capital
stock premium) and if the capital reserves (share capital premium) is insufficient to offset the retained earnings shall be adjusted.The long-term equity investments held by the combining party before acquiring the control right of the combined party if relevant
gains and losses other comprehensive income and changes in other owners’ equity have been confirmed from the date of
acquiring equity and the date when the combining party and the combined party under the final control of the same party
whichever is later to the combination date shall offset the retained earnings at the beginning or current profits and losses in the
period of comparing statements.
(2) Business Combinations Not under the Same Control
For a business combination not under the same control the cost of the combination is the assets paid liabilities incurred or
assumed and the fair value of the equity securities issued on the acquisition date to obtain control over the purchased party. On the
purchase date the acquired assets liabilities and contingent liabilities of the purchased party are recognized at fair value.The difference between the merger cost and the fair value of the identifiable net assets of the acquired party acquired in the merger
(the former is greater than the latter) is recognized as goodwill and subsequent measurement is made based on the cost deducting
the accumulated impairment provision; the difference between the merger cost and the fair value of the identifiable net assets of
the acquired party acquired in the merger (the former is less than the latter) shall be recorded into the current profit or loss after the
recheck.Achieve business combination not under the same control step by step through multiple transactions
The cost of consolidation is the sum of the consideration paid at the purchase date and the fair value at the purchase date of the
equity already held by the acquired party before the purchase date. For equity of the acquired party that is already held before the
purchase date it shall be re-measured according to the fair value of the equity on the purchase date and the difference between the
fair value and its carrying value shall be included in the current investment income. If the equity of the acquired party held before
the purchase date involves other comprehensive income and the changes of other owner’s equity it shall be transferred to current
income on the purchase date other comprehensive income arising from the remeasurement of the net liability or net assets of a
defined benefit plan by the investee as well as other comprehensive income related to investments in non-trading equity
instruments designated at fair value through other comprehensive income are excluded.
(3) Treatment of Transaction Costs in Business Combinations
Intermediary expenses such as auditing legal services evaluation and consulting and other related administrative expenses
incurred for the business combination shall be included in the current profit and loss when incurred. The transaction costs of equity
securities or debt securities issued as the merger consideration shall be included in the initial recognition amount of equity
securities or debt securities.
7. Criteria for Judging Control and Methods for Preparing Consolidated Financial Statements
(1) Criteria for Judging Control
The consolidation scope of the consolidated financial statements is determined on the basis of control. Control means that the
Company has the power over the invested unit enjoys variable returns by participating in the related activities of the invested unit
and has the ability to use the power over the invested unit to influence the amount of its return. When changes in relevant facts and
circumstances lead to changes in the elements involved in the definition of control the Company will reassess.In determining whether to include a structured entity within the consolidation scope the Company considers all facts and
circumstances including assessing the purpose and design of the structured entity’s establishment identifying the types of variable
23Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
returns and evaluating whether the Company controls the structured entity based on whether it has assumed some or all of the
variability in returns by participating in its relevant activities.
(2) Methods for Preparing Consolidated Financial Statements
The consolidated financial statements are prepared by the Company based on the financial statements of the Company and its
subsidiaries and other relevant materials. When preparing the consolidated financial statements the accounting policies and
accounting fiscal of the Company and those of subsidiaries shall be consistent and the large transactions and intercourse balance
among companies shall be offset.Subsidiaries and businesses increased due to business combinations under the same control during the Reporting Period shall be
included into the Company’s combination scope since the date when they are jointly controlled by the final controller and the
operating result and cash flow since then shall be respectively included into the consolidated income statement and consolidated
cash flow statement.As for subsidiaries and businesses increase due to business combinations not under the same control during the Reporting Period
the revenue expenses and profit or those subsidiaries and businesses from the purchase date to the end of the Reporting Period
shall be included into the consolidated income statement and the cash flow thereof shall be included into the consolidated cash
flow statement.The share of shareholders’ equity in subsidiaries not belonging to the Company shall be regarded as the equity of non-controlling
interests and separately listed under the item of shareholders’ equity in the consolidated balance sheet. The share of current portion
of net profit or loss in subsidiaries belonging to the equity of non-controlling interests shall presented as the item of the equity of
non-controlling interests under the item of net profit in the consolidated income statement. The difference between the losses of
subsidiaries born by not-controlling shareholders and the share of the company’s owners’ equity at the period-beginning the not-
controlling shareholders enjoy (the former is larger than the latter) shall be offset the equity of non-controlling interests.
8. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
Joint arrangement refers to an arrangement under the joint control of two or more participants. The Company’s joint arrangements
are divided into joint operations and joint ventures.
(1) Joint Operations
A joint operation refers to a joint arrangement whereby the Company enjoys relevant assets of the arrangement and assumes
obligations relevant liabilities of the arrangement.The Company recognizes the following items related to the interest share in joint operation and conducts accounting treatment in
accordance with relevant provisions of the Accounting Standard for Business Enterprises:
A. It recognizes separately held assets and jointly held assets according to the proportion;
B. It recognizes separately assumed liabilities and jointly assumed liabilities according to the proportion;
C. Income from the sale of the proportion of joint operation output is recognized;
D. Income from the sale of the joint operation output is recognized according to the proportion;
E. While the separately incurred fee is recognized the incurred fee for joint operation is recognized according to the proportion.
(2) Joint Ventures
A joint venture refers to a joint arrangement whereby the Company enjoys the right of the net assets of the arrangement only.Accounting treatment of the investment of a joint venture is conducted by the Company in line with the provisions of relevant
equity method of accounting for long-term equity investment.
24Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
9. Confirmation Standard for Cash and Cash Equivalent
The term “cash” refers to cash on hand and deposits that are available for payment at any time. Cash equivalents refer to
investments held by the Company that are short-term highly liquid easily convertible into known amounts of cash and have little
risk of change in value.
10. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Foreign Currency Business
The Company’s foreign currency business is translated into the amount of the recording currency at the approximate exchange rate
of the spot exchange rate on the transaction date.On the balance sheet date foreign currency monetary items are translated at the spot exchange rate on the balance sheet date. The
exchange difference arising from the difference between the spot exchange rate on the balance sheet date and the spot exchange
rate at the time of initial recognition or the previous balance sheet date is included in the current profit and loss; for foreign
currency non-monetary items measured at historical cost the translation adopts the spot exchange rate on the day the transaction
occurs; for foreign currency non-monetary items measured at fair value the translation adopts the spot exchange rate on the day
when the fair value is confirmed and the difference between the amount of recording currency and the amount of original
recording currency shall be included into the current profit or loss or other comprehensive income based on the nature of non-
monetary items.
(2) Conversion of Foreign Currency Financial Statements
When converting the foreign currency financial statements of overseas subsidiaries on the balance sheet date the assets and
liabilities items in the balance sheet shall be converted at the spot exchange rate on the balance sheet date. Other items of
shareholders’ equity except for “retained earnings” shall be converted at the spot exchange rate on the occurrence date.Income and expense items in the income statement shall be converted using the approximate spot exchange rate on the transaction
date.All items in the cash flow statement are converted according to the approximate spot exchange rate on the occurrence date of cashflow. The impact of exchange rate changes on cash is taken as a reconciling item and the item “impact of exchange rate changeson cash and cash equivalents” is separately listed in the cash flow statement to reflect.The difference arising from the conversion of financial statements is reflected in the “other comprehensive income” under the
shareholders’ equity in the balance sheet.When disposing of the overseas operation and losing control rights the foreign currency statement conversion difference related to
the overseas operation shown under the shareholders’ equity in the balance sheet shall be transferred to current profit and loss of
disposal in whole or in proportion to the disposal of overseas operation.
11. Financial Instruments
Financial instruments refer to contracts that form one party’s financial assets and form other parties’ financial liabilities or equity
instruments.
(1) Recognition and Derecognition of Financial Instruments
The Company recognizes a financial asset or financial liability when it becomes a party to the financial instrument contract.Where a financial asset satisfies any of the following requirements the recognition of it is terminated: a) The contractual rights for
collecting the cash flow of the said financial asset are terminated; b) The said financial asset has been transferred and meet the
following derecognition conditions for transfer of financial assets.Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the financial
liability be terminated in all or partly. Where the Company (debtor) enters into an agreement with a creditor so as to substitute the
25Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
existing financial liabilities by way of any new financial liability and if the contractual stipulations regarding the new financial
liability is substantially different from that regarding the existing financial liability it terminates the recognition of the existing
financial liability and at the same time recognizes the new financial liability.The purchase and sale of financial assets under the normal ways shall be recognized and stopped to be recognized respectively at
the price of transaction date.
(2) Classification and Measurement of Financial Assets
The Company classifies financial assets into the following three categories according to the business mode of managing financial
assets and the contractual cash flow characteristics of financial assets upon initial recognition: financial assets measured at
amortized cost financial assets measured at fair value and whose changes are included in other comprehensive income and
financial assets at fair value through profit or loss.Financial assets are measured at fair value upon initial recognition. For financial assets at fair value through profit or loss relevant
transaction expenses are directly included in current profit and loss; for other types of financial assets relevant transaction
expenses are included in the initial recognition amount. For accounts receivable arising from the sale of products or the provision
of labor services which do not include or do not consider significant financing components the amount of consideration the
Company is expected to be entitled to receive is taken as the initial recognition amount.Financial assets measured at amortized cost
The Company classifies financial assets that meet the following conditions and are not designated to be measured at fair value
through profit or loss as financial assets measured at amortized cost:
The Company’s business model for managing this financial asset is aimed at collecting contractual cash flow;
The contractual terms of this financial asset stipulate that the cash flow generated on the specific date is only the payment of
principal and interest based on the principal amount outstanding.Such financial assets are measured in amortized cost by the effective interest method after initial recognition. Gains or losses
arising from financial assets measured in amortized cost that are not part of any hedging relationship are included in current profit
and loss when derecognition amortization according to the effective interest method or impairment is recognized.Financial assets measured at fair value and whose changes are included in other comprehensive income
The Company classifies financial assets that meet the following conditions and are not designated to be measured at fair value
through profit or loss as financial assets measured at fair value and whose changes are included in other comprehensive income:
The Company’s business model for managing this financial asset is aimed at both collecting the contractual cash flow and selling
this financial asset;
The contractual terms of this financial asset stipulate that the cash flow generated on the specific date is only the payment of
principal and interest based on the principal amount outstanding.Such financial assets are subsequently measured at fair value after initial recognition. Interest impairment losses or gains and
foreign exchange gains or losses calculated by the effective interest method are included in current profit and loss while other
gains or losses are included in other comprehensive income. When the financial asset is derecognized the accumulated gains or
losses previously included in other comprehensive income are transferred out and included in current profit and loss.Financial assets at fair value through profit or loss
Except for the financial assets measured at amortized cost and those measured at fair value with changes recognized in other
comprehensive income the Company classifies all other financial assets as financial assets measured at fair value with changes
recognized in profit or loss. Upon initial recognition in order to eliminate or significantly reduce accounting mismatches the
Company irrevocably designates some financial assets that should have been measured at amortized cost or at fair value and
whose changes are included in other comprehensive income as financial assets at fair value through profit or loss.Such financial assets are subsequently measured at fair value after initial recognition and the resulting gains or losses (including
interest and dividend income) are included in current profit and loss unless the financial assets are part of the hedging relationship.The business model of managing financial assets refers to how the Company manages financial assets to generate cash flow. The
26Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
business model determines whether the cash flow of the financial assets managed by the Company comes from the collection of
contractual cash flow the sale of financial assets or both. The Company determines the business model for managing financial
assets on the basis of objective facts and specific business objectives decided by key management personnel to manage financial
assets.The Company evaluates the contractual cash flow characteristics of financial assets to determine whether the contractual cash flow
generated by the relevant financial assets on the specific date is only the payment of principal and interest based on the principal
amount outstanding. Among them the principal refers to the fair value of financial assets upon initial recognition; interest includes
consideration for the time value of money credit risks related to the principal amount outstanding in the specific period and other
basic lending risks costs and profits. In addition the Company evaluates the contract terms that may lead to changes in the time
distribution or amount of contractual cash flow of financial assets to determine whether they meet the requirements of the above-
mentioned contractual cash flow characteristics.Only when the Company changes the business mode of managing financial assets will all affected related financial assets be
reclassified on the first day of the first reporting period after business model changes otherwise financial assets cannot be
reclassified after initial recognition.
(3) Classification and Measurement of Financial Liabilities
The Company’s financial liabilities are classified upon initial recognition as: financial liabilities measured at fair value and whose
changes are included in current profit and loss and financial liabilities measured at amortized cost. For financial liabilities that are
not classified as measured at fair value and whose changes are included in current profit and loss relevant transaction costs are
included in the initial recognition amount.Financial liabilities measured at fair value with changes recognized in profit or loss
Financial liabilities measured at fair value with changes recognized in profit or loss include held-for-trading financial liabilities
and financial liabilities that are designated upon initial recognition as measured at fair value with changes recognized in profit or
loss. Subsequent measurement shall be carried out according to fair value for such financial liabilities. Gains or losses resulting
from changes in fair value and dividends and interest expenses related to such financial liabilities shall be included in current profit
and loss.Financial liabilities measured at amortized cost
Other financial liabilities are subsequently measured at amortized cost by using the effective interest method. Gains or losses
resulting from derecognition or amortization are included in current profit and loss.Distinction between financial liabilities and equity instruments
Financial liabilities refer to liabilities that meet one of the following conditions:
a) The contractual obligation to deliver cash or other financial assets to other parties.b) The contractual obligation to exchange financial assets or financial liabilities with other parties under potentially unfavorable
conditions.c) Non-derivative contracts that must be or can be settled with the enterprise’s own equity instruments in the future and the
enterprise will deliver a variable number of its own equity instruments according to the contract.d) Derivative contracts that must be or can be settled with the enterprise’s own equity instruments in the future except derivatives
contracts that exchange a fixed amount of cash or other financial assets with a fixed amount of its own equity instruments. Equity
instruments refer to contracts that can prove that an enterprise has the residual equity in its assets after deducting all liabilities.Equity instruments refer to contracts that can prove that an enterprise has the residual equity in its assets after deducting all
liabilities.If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other financial assets the
contractual obligation meets the definition of financial liability.If a financial instrument must be or can be settled with the Company’s own equity instruments it is necessary to consider whether
the Company’s own equity instruments used to settle the instrument are used as substitutes for cash or other financial assets or to
27Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
enable the holder of this instrument to enjoy the residual equity in the assets after deducting all liabilities from the issuer. If it is
the former this instrument is the Company’s financial liability; if the latter is the case this instrument is the Company’s equity
instrument.
(4) Derivative Financial Instruments and Embedded Derivatives
The Company’s derivative financial instruments include forward foreign exchange contracts foreign exchange option contracts
and others. Initially the fair value on the date when the derivative transaction contract is signed shall be used for measurement
and the fair value shall be used for subsequent measurement. Derivative financial instruments with positive fair value are
recognized as an asset while those with negative fair value are indeed recognized as a liability. Any gains or losses arising from
changes in fair value that do not conform to the provisions of hedge accounting are directly included in current profit and loss.For hybrid instruments containing embedded derivatives such as the main contract is a financial asset the relevant provisions on
classification of financial assets shall apply to the hybrid instruments as a whole. If the main contract is not a financial asset and
the hybrid instrument is not measured at fair value and its changes are included in current profit and loss for accounting treatment
the embedded derivative instrument has no close relationship with the main contract in terms of economic characteristics and risks
and has the same conditions as the embedded derivative instrument and the separate existing instrument meets the definition of
derivative instrument the embedded derivative instrument shall be separated from the hybrid instrument and treated as a separate
derivative financial instrument. If it is not possible to separately measure embedded derivative instruments at the time of
acquisition or the subsequent balance sheet date the hybrid instruments as a whole are designated as financial assets or financial
liabilities measured at fair value through profit or loss.
(5) Fair Value of Financial Instruments
The methods for determining the fair value of financial assets and financial liabilities are detailed in Note V-12.
(6) Impairment of Financial Assets
The Company conducts impairment accounting treatment for the following items and confirms the loss provision based on the
expected credit losses:
Financial assets measured at amortized cost;
Receivables and investment in debt instruments measured at fair value and whose changes are included in other comprehensive
income;
Contract assets defined in the Accounting Standards for Business Enterprises No. 14-Revenue;
Lease receivables;
Financial guarantee contracts (except those that are measured at fair value and whose changes are included in current profit and
loss the transfer of financial assets does not meet the conditions for derecognition or continue to involve in the transferred
financial assets).Measurement of expected credit losses
Expected credit loss refers to the weighted average of the credit losses of a financial instrument weighted by the risk of default
occurring. Credit loss refers to the difference between all contractual cash flows discounted at the original effective interest rate
and receivable according to the contract and all cash flows expected to be collected of the Company i.e. the present value of all
cash shortfalls.Considering the reasonable and reliable information about past events current situation and the forecast of future economic
situation the Company takes the risk of default as the weight calculates the probability weighted amount of the present value of
the difference between the cash flow receivable from the contract and the cash flow expected to be received and confirms the
expected credit loss.The Company separately measures the expected credit losses of financial instruments at different stages. If the credit risk of
financial instruments has not increased significantly since the initial recognition it is in the first stage. The Company measures the
loss reserve according to the expected credit loss in the next 12 months; if the credit risk of financial instruments has increased
significantly since its initial recognition but no credit impairment has occurred it is in the second stage. The Company measures
28Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
the loss reserve according to the expected credit loss during the whole duration of this instrument; if the financial instrument has
suffered credit impairment since its initial recognition it is in the third stage. The Company measures the loss reserve according to
the expected credit loss during the whole duration of this instrument.For financial instruments with low credit risk on the balance sheet date the Company assumes that their credit risk has not
increased significantly since the initial recognition and measures the loss reserve according to the expected credit loss in the next
12 months.
The expected credit loss during the whole duration refers to the expected credit loss caused by all possible default events during
the whole expected duration of financial instruments. The expected credit loss in the next 12 months refers to the expected credit
loss caused by the possible default events of financial instruments within 12 months (or the expected duration if the expected
duration of financial instruments is less than 12 months) after the balance sheet date which is part of the expected credit loss in the
whole duration.When measuring the expected credit loss the longest term that the Company needs to consider is the longest contract term that the
enterprise faces credit risk (including the option to renew the contract).The Company calculates interest income based on the carrying amount before deducting impairment provisions and the effective
interest rate for financial instruments in the first and second stages and with low credit risk. The interest income shall be calculated
according to their carrying amount minus the amortized cost after impairment provision and the effective interest rate for financial
instruments in the third stage.For receivables such as notes receivable accounts receivable accounts receivables financing other receivables and contract assets
if the credit risk characteristics of a particular customer significantly differ from those of other customers in the portfolio or if
there is a significant change in the customer’s credit risk characteristics the Company will make receivables withdrawal of bad
debt provision separately accrued. Apart from receivables withdrawal of bad debt provision separately accrued are made the
Company classifies receivables into portfolios based on credit risk characteristics and calculates the allowance for doubtful debts
on a portfolio basis.Notes receivable accounts receivable and contract assets
The Company always measures its loss reserves at an amount equivalent to the expected credit loss during the entire duration for
notes receivable contract assets and accounts receivable regardless of whether there is any significant financing component.If a single financial asset or contract assets cannot be used to evaluate the expected credit loss information at a reasonable cost the
Company will divide the notes receivable accounts receivable and contract assets into portfolio on the basis of the credit risk
features and calculate the expected credit loss based on the portfolio. The basis for determining the portfolio is as follows:
A. Notes receivable
Notes receivable portfolio 1: Bank acceptance bills with low credit rating
Notes receivable portfolio 2: Commercial acceptance bills
B. Accounts receivable
Accounts receivable portfolio 1: Payment not overdue (with L/C)
Accounts receivable portfolio 2: Payment not overdue (with credit insurance)
Accounts receivable portfolio 3: Payment overdue (without credit insurance)
Accounts receivable portfolio 4: Payment overdue (with credit insurance)
Accounts receivable portfolio 5: Payment overdue (without credit insurance)
For notes receivable and contract assets divided into portfolios with reference to historical credit loss experience combined with
current conditions and predictions of future economic conditions the Company has calculated expected credit losses through
default risk exposure and expected credit loss rate for the entire duration.For accounts receivable divided into portfolios with reference to historical credit loss experience combined with current
conditions and predictions of future economic conditions the Company has prepared a comparison table between the number of
aging/overdue days of accounts receivable and the expected credit loss rate over the entire duration and has calculated the
29Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
expected credit loss. The aging of accounts receivable is calculated from the date of recognition/the number of days overdue is
calculated from the expiry date of the credit period.Other receivables
The Company divides other receivables into several portfolios based on the features of credit risk and calculates the expected
credit losses on the basis of the combination. The basis for determining the portfolio is as follows:
Other receivables portfolio 1: Receivables from related parties within the scope of consolidation
Other receivables portfolio 2: Tax receivable
Other receivables portfolio 3: Security deposit and margin receivable
Other receivables portfolio 4: other receivables
For other receivables that are divided into portfolios the Company calculates the expected credit loss with the default risk
exposure and the expected credit loss rate within the next 12 months or the entire duration. For other receivables classified into
portfolios by aging the aging is calculated from the date of recognition.Creditors’ investment and other creditors’ investment
For creditors’ investment and other creditors’ investment the Company calculates the expected credit based on the nature of the
investment as well as kinds of types of counterparties and risk exposures the default risk exposure and the expected credit loss
rate within the next 12 months or the entire duration loss.Assessment on significant increase of credit risk
In order to determine the relative changes in the default risk of financial instruments during their expected life and to assess
whether the credit risk of financial instruments has increased significantly since initial recognition the Company compares the
default risk of financial instruments on the balance sheet date with the default risk on the initial recognition date.When determining whether the credit risk has risen greatly since the initial recognition the Company considers reasonable and
reliable information (forward-looking information inclusive) that can be obtained without unnecessary extra costs or efforts. The
information the Company considers shall include:
The debtor fails to pay the principal and interest according to the contract expiration date;
The external or internal credit ratings (if any) of financial instruments which have occurred or are expected deteriorate
significantly;
The debtor’s operating results which have occurred or are expected deteriorate significantly;
Existing or expected changes in technology market economy or legal environment will lead to a great adverse effect on the
debtor’s ability to repay the Company.Based on the nature of financial instruments the Company assesses whether there is great risk in credit risk on the basis of
individual financial instruments or financial instrument portfolios. During assessment based on financial instrument portfolios the
Company can divide financial instruments on the basis of common credit risk characteristics such as overdue information and
credit risk ratings.In case that the period overdue exceeds 30 days the Company determines that there is a significant increase in the credit risk of
financial instruments.Financial assets with depreciation of credit
The Company assesses on the balance sheet date whether there is any credit impairment to financial assets measured at amortized
cost and creditors’ investment measured at fair value and whose changes are included in other comprehensive income. In case of
one or more events that adversely affect the expected future cash flow of a financial asset occur the financial asset will become
financial assets with depreciation of credit. The observable information below can be treated as evidence for credit impairment to
financial assets:
The issuer or debtor is caught in a serious financial difficulty;
The debtor breaches the agreement of contract such as default or overdue payment of interest or principal or other default;
Due to economic or contractual considerations related to the debtor’s financial difficulties the Company gives concessions to the
30Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
debtor; and the concessions will not be made under any other circumstances;
There lies a great probability of bankruptcy or other financial restructuring for the debtor;
The issuer or debtor is caught in financial difficulties which leads to the disappearance of the active market of the financial asset;
Presentation of expected credit loss provision
The Company remeasures expected credit losses on each balance sheet date to reflect the changes in the credit risk of financial
instruments since initial recognition; the increase or reversal amount of the loss reserve formed there from shall be included in the
current profit and loss as impairment losses or gains. For financial assets measured at amortized cost the loss allowance offsets the
carrying value of the financial asset listed in the balance sheet; for creditors’ investment that are measured at fair value and its
changes are included in other comprehensive income the Company recognizes its loss reserve in other comprehensive income and
will not offset the carrying value of the financial asset.Write-offs
In case that the Company fails to reasonably expect the contract cash flow of the financial asset to be recovered in a full or partial
scale the carrying amount of the financial asset will be written off directly. Such write-downs may constitute the derecognition for
related financial assets. This situation occurs frequently when the Company determines that the debtor does not have any assets or
any source of income to generate sufficient cash flow to repay the amount that will be written off. However in accordance with
the procedures for recovering due payments of the Company the written-off financial assets may still be affected by the execution
activities.In case that the financial asset written off is recovered later it shall be included in the current profit and loss as the reversal of the
impairment loss.
(7) Transfer of Financial Assets
The transfer of financial assets refers to the transfer or delivery of financial assets to another party (transferee) other than the issuer
of the financial asset.If the Company has transferred almost all the risks and rewards of the ownership of financial assets to the transferee derecognize
the financial asset; if it retains almost all the risks and rewards of the ownership of financial assets the financial asset will not be
derecognized.If the Company has neither transferred nor retained almost all the risks and rewards of the ownership of financial assets it shall be
dealt with in the following situations: if the control of the financial asset is abandoned the confirmation of the financial asset shall
be terminated and the generated assets and liabilities shall be confirmed; If the financial assets are controlled the relevant financial
assets shall be recognized according to the extent of their continued involvement in the transferred financial assets and the
relevant liabilities shall be recognized accordingly.
(8) Offsetting Financial Assets and Financial Liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities
and intends either to settle on a net basis or to realize the financial asset and settle the financial liability simultaneously a financial
asset and a financial liability shall be offset and the net amount is presented in the balance sheet. Except for the above
circumstances financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
12. Measurement of Fair Value
Fair value refers to the price that market participants can receive from sales of an asset or shall pay for transfer of a liability in the
orderly transaction that occurs on the measurement date.The Company measures related assets or liabilities at fair value assuming that the orderly transaction of selling assets or
transferring liabilities is conducted in the main market of related assets or liabilities; if there is no main market the Company
assumes that the transaction is conducted in the most beneficial market. The main market (or the most favorable market) is the
31Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
trading market that the Company can enter on the measurement date. The Company uses the assumptions used by market
participants to maximize their economic benefits when pricing the asset or liability.For financial assets or financial liabilities with active markets the Company uses the quotation in active markets to determine its
fair value. If there is no active market for financial instruments the Company uses valuation techniques to determine its fair value.When measuring non-financial assets at fair value the ability of market participants to best use the asset for generating economic
benefits or the ability to sell the asset to other market participants that can best use the asset to generate economic benefits shall be
considered.The Company adopts valuation techniques that are applicable in the current situation and have sufficient available data and other
information to support it. Priority is given to using relevant observable input values. Only when observable input values ? ? are
unavailable or are not feasible to obtain the unobservable input values can be used.For assets and liabilities measured or disclosed at fair value in the financial statements the fair value hierarchy to which they
belong is determined based on the lowest level input value that is important to the fair value measurement as a whole: the first
level input value is the unadjusted quotation of the same assets or liabilities able to be obtained in an active market on the
measurement date; the second level input value is the directly or indirectly observable input value of the relevant asset or liability
except the first level input value; the third level input value is unobservable input value of related assets or liabilities.On each balance sheet date the Company reassessed the assets and liabilities continuously measured at fair value confirmed in the
financial statements to determine whether there is a transition among levels of fair value measurement.
13. Inventory
(1) Classification of Inventory
The Company inventories mainly include raw materials work-in-progress inventory goods products processed on entrustment
and etc.
(2) Valuation Method for Issued Inventories
The Company values inventories at actual cost upon acquisition. Grey yarn dyed yarn and fabric shall be measured at first-in
first-out method when acquired and delivered; other inventories shall be measured as per the weighted average method
(3) Basis for Determining the Net Realizable Value of Inventory and the Provision for Inventory Impairment
On the balance sheet date inventory is measured at the lower of cost and net realizable value. When their net realizable value falls
below cost an allowance for inventory impairment is provided.Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion the
estimated costs necessary to make the sale and relevant taxes. Net realizable value is determined on the basis of clear evidence
obtained and takes into consideration the purpose of holding inventories and effect of post balance sheet date events.The Company generally provides for inventory depreciation on a per-item basis. For inventories that are numerous in quantity and
low in unit price an allowance for inventory impairment is provided based on inventory categories.On the balance sheet date if the factors affecting the value of inventories previously written down have disappeared the provision
for inventory write-downs is reversed to the extent of the original amount provided.
(4) Inventory System
The Company’s perpetual inventory system is maintained for stock system.
(5) Amortization Method for Low-value Consumables and Packaging Materials
The Company applies the one-time write-off method for amortizing low-value consumables and packaging materials upon usage.
32Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
14. Long-term Equity Investments
Long-term equity investments include equity investments in subsidiaries joint ventures and associated enterprises. The investee
that the Company is able to exert significant influence is an associated enterprise of the Company.
(1) Determination of Initial Investment Cost
Long-term equity investment that forms a business combination: Long-term equity investment obtained by business combination
under the same control on the merger date based on the carrying value share of the merged party’s owners’ equity in the final
controller’s consolidated financial statements as investment cost; The long-term equity investment acquired by a business
combination shall be the investment cost of the long-term equity investment according to the cost of the combination.For long-term equity investments obtained by other means: the long-term equity investment obtained by paying cash shall be the
initial investment cost according to the actual purchase price; the long-term equity investment obtained by issuing equity securities
shall be the initial investment cost of the fair value of the equity securities issued.
(2) Subsequent Measurement and Profit or Loss Recognition Method
Investments in subsidiaries are accounted for using the cost method unless the investment meets the conditions for classification
as held for sale. Investments in associated enterprises and joint ventures are accounted for using the equity method.For long-term equity investments that are accounted for using the cost method in addition to the cash dividends or profits that
have been declared but not yet included in the actual payment or consideration included in the investment the cash dividends or
profits declared by the invested entity are recognized as investment income and recorded into the current profit and loss.For long-term equity investments accounted for using the equity method where the initial investment cost is greater than the fair
value share of the investee’s identifiable net assets at the time of investment the investment cost of the long-term equity
investment is not adjusted; when the initial investment cost is less than the investment the investee ‘s If the fair value share of net
assets is identified the carrying value of the long-term equity investment is adjusted and the difference is included in the current
profit and loss of the investment.When using the equity method of accounting the investment income and other comprehensive income are recognized separately
according to the share of net profit and loss and other comprehensive income realized by the invested unit that should be enjoyed
or shared and the carrying value of the long-term equity investment is adjusted at the same time; The distribution of profits or
cash dividends should be calculated to reduce the carrying value of long-term equity investment; the investee’s other changes in
owner’s equity other than net profit and loss other comprehensive income and profit distribution adjust the carrying value of
long-term equity investment and Included in capital reserves (other capital reserves). When confirming the share of the investee’s
net profit or loss based on the fair value of the investee’s identifiable assets at the time of investment and in accordance with the
Company’s accounting policies and accounting period the net profit of the investee Confirm after making adjustments.If the additional investment and other reasons can exert significant influence on the investee or exercise joint control but do not
constitute control on the conversion date the sum of the fair value of the original equity plus the additional investment cost will
be used as the initial accounting for the equity method cost of investment. If the original equity is classified as non-trading equity
instrument investment measured at fair value whose changes are included in other comprehensive income the relevant original
and accumulative changes in fair value included in other comprehensive income shall be transferred to retained earnings when
accounting by equity method.If the joint control or significant influence on the invested unit is lost due to the disposal of part of the equity investment etc. the
remaining equity after the disposal shall be changed to the Accounting Standards for Business Enterprises No. 22-Recognition and
Measurement of Financial Instruments is performed and the difference between fair value and carrying value is included in the
current profit and loss. Other comprehensive income recognized by the original equity investment due to the equity method of
accounting shall be accounted for on the same basis as the investee’s direct disposal of related assets or liabilities when the equity
method of accounting is terminated; changes in other owners’ equity related to the original equity investment Transfer to current
profit and loss.If the control of the invested unit is lost due to the disposal of part of the equity investment if the remaining equity after the
33Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
disposal can exercise joint control or exert significant influence on the invested unit the equity method is used for accounting and
the remaining equity is treated as when acquiring the equity method is adopted for adjustment; if the remaining equity after
disposal cannot exercise joint control or exert significant influence on the investee the accounting shall be changed according to
the relevant provisions of Accounting Standards for Business Enterprises No. 22—Recognition and Measurement of Financial
Instruments. The difference between the fair value and the carrying value on the date of loss of control is included in the current
profit and loss.If the shareholding ratio of the Company decreases due to the capital increase of other investors thereby losing control but being
able to exercise joint control or exert significant influence on the investee the new shareholding ratio shall be used to confirm that
the Company should enjoy the capital increase of the investee. The difference between the increase in share and the increase in the
share of net assets and the original carrying value of the long-term equity investment corresponding to the decrease in the
proportion of the shareholding that should be carried forward are included in the current profit and loss; That is adjustments are
made using the equity method of accounting.The unrealized internal transaction gains and losses that occur between the Company and associated enterprises and joint ventures
are calculated according to the shareholding ratio and are attributed to the Company and the investment gains and losses are
recognized on the basis of offset. However the unrealized internal transaction losses incurred by the Company and the investee are
the impairment losses of the transferred assets and shall not be offset.
(3) Basis for Determining Joint Control and Significant Influence over the Invested Entity
Joint control refers to shared control over an arrangement according to relevant agreements where the related activities of the
arrangement can only be decided with the unanimous consent of the participants sharing control. When judging whether there is
joint control first determine whether all participants or a combination of participants collectively control the arrangement and
secondly determine whether the decision-making related activities of the arrangement must be unanimously agreed by the
participants who collectively control the arrangement. If all participants or a Company of participants must act in concert to
determine the relevant activities of an arrangement it is considered that all participants or a Company of participants collectively
control the arrangement; if there is a combination of two or more participants can collectively Controlling an arrangement does not
constitute joint control. When judging whether there is joint control the protective rights enjoyed are not considered.Significant influence means that the investor has the right to participate in the decision-making of the financial and operating
policies of the invested unit but cannot control or jointly control the formulation of these policies with other parties. When
determining whether significant influence can be exerted on the investee consideration is given to the voting rights held directly or
indirectly by the investor in the investee as well as the impact of currently exercisable potential voting rights held by the investor
and other parties after assuming their conversion into equity in the investee including the effects of currently convertible warrants
share options and convertible corporate bonds issued by the investee.When the Company directly or indirectly owns more than 20% (including 20%) but less than 50% of the voting shares of the
invested unit it is generally considered to have a significant impact on the invested unit unless there is clear evidence that such
circumstances cannot participate in the production and operation decisions of the invested unit and does not have a significant
impact; when the Company owns less than 20% (excluding) voting rights of the invested unit it generally does not consider it to
have a significant impact on the invested unit unless there is clear evidence that under these circumstances it can participate in the
production and operation decisions of the invested unit and have a significant impact.
(4) Impairment Testing Method and Provision for Impairment
The method for recognizing impairment on investments in subsidiaries associated enterprises and joint ventures is detailed in
Note V-22.
15. Investment Property
Measurement model of investment property
Cost method measurement
34Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Depreciation or amortization method
The investment property refers to the real estate gaining the rent or capital appreciation or both. It includes rented land use rights
holding land use right to be transferred after the appreciation and rented building etc.The investment property is measured initially according to the cost and withdrawn depreciation or amortization as regulations of
fixed assets or intangible assets.The Company adopts the cost mode to conduct the subsequent measurement on the investment property see the Note V-22 for the
method of provision for impairment assets.The difference between the disposal income of investment property sales transfer scrap or damage after deducting its carrying
value and related taxes is included in the current profit and loss.
16. Fixed Assets
(1) Conditions for Recognition
The term “fixed assets” refers to the tangible assets that simultaneously possess the features as follows: (a) they are held for the
sake of producing commodities rendering labor service renting or business management; and (b) their useful life is in excess of
one fiscal year.The fixed assets are only recognized when the relevant economic benefits probably flow in the Company and its cost could be
reliable measured.The fixed assets of the Company are initially measured at the actual cost at the time of acquisition.The subsequent expenditures related to the fixed assets shall be included in the cost of the fixed assets when the economic benefits
related to the fixed assets are likely to flow into the Company and the costs can be measured reliably. The daily repair expenses of
fixed assets that do not meet the conditions of capitalized subsequent expenditures of fixed assets shall be included in the current
profit and loss or the cost of relevant assets according to the beneficiaries when incurred. The carrying value of the replaced part
shall be terminated.
(2) Depreciation Methods
Category Depreciation method Useful life Salvage value (%) Annual deprecation (%)
Housing and building Average method of useful life 5-30 0-10 20.00-3.00
Machinery equipment Average method of useful life 10-18 0-10 10.00-5.00
Transportation vehicle Average method of useful life 5 0-10 20.00-18.00
Electronic equipment and others Average method of useful life 5 0-10 20.00-18.00
(3) Recognition Basis Pricing and Depreciation Method of Fixed Asset under Finance Lease
See the Note V-22 for details.
35Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
(4) At the End of Each Year Review Is Carried out by the Company for the Service Life Estimated Net
Residual Value and Depreciation Method of Fixed Assets
If there is any difference between the expected service life and the original estimated service life the service life of fixed assets
will be adjusted; if there is any difference between the expected net residual value and the original estimated net residual value the
expected net residual value will be adjusted
(5) Disposal of Fixed Assets
A fixed asset shall be derecognized when it is disposed of or it is expected that no economic benefit can be generated by using or
disposing of it. The amount of the disposal income of sales transfer scrap or damage of the fixed asset after deducting its carrying
value and related taxes is included in the current profit and loss.
17. Construction in Progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs borrowing costs that are eligible for
capitalization before the fixed assets being ready for their intended us and other relevant costs.Construction in progress is transferred to fixed assets when the assets are ready for their intended use.See the details of the method of provision for impairment assets of the construction in progress to Notes V-22.
18. Engineering Materials
Engineering materials of the Company refer to various materials prepared for construction in progress including engineering
materials equipment not yet installed tools and instruments prepared for production etc.The purchased engineering materials will be measured according to the cost. The received engineering materials will be
transferred to the construction in progress and the remaining engineering materials after the completion of the project will be
stored as inventory.Please refer to Note V (22) for the method of provision for impairment assets for engineering materials.In the balance sheet the ending balance of engineering materials is listed in the “construction in progress” item.
19. Borrowing Costs
(1) Confirmation Principle of Capitalized Borrowing Costs
The borrowing costs incurred by the Company if can directly belong to acquisition construction or production of assets meeting
capitalization conditions are capitalized and included in relevant asset cost; other borrowing costs are confirmed as expense
according to its amount at the time of occurrence and included in the current profits and losses. Borrowing costs are capitalized
when they meet the following conditions:
a) Asset expenditures have been incurred. Asset expenditures include those incurred for the acquisition construction or
production of assets that meet the capitalization criteria through cash payments transfer of non-cash assets or the incurrence of
interest-bearing debts.b) Borrowing costs have been incurred;
c) The acquisition construction or production activities necessary to bring the asset to the condition for intended use or sale have
begun.
(2) Capitalization Period for Borrowing Costs
When the Company acquires constructs or produces assets which meet capitalization conditions and reach the intended usable or
36Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
saleable status the borrowing costs stop capitalization. The borrowing costs that occur after the assets meeting capitalization
conditions reach the intended usable or saleable status are recognized as expenses according to its amount at the time of
occurrence and are included in the current profits and losses.If the assets meeting capital conditions generate improper interruption in the course of acquisition construction or production and
the interruption time continuously exceeds three months capitalization of borrowing costs suspends; the borrowing costs in the
normal interruption period are continually capitalized.
(3) Capitalization Rate of Borrowing Costs and Calculation Method of Capitalized Amount
The interest expenses of special borrowing actually occurring in the Current Period minus the interest income of the unused
borrowed capital obtained from depositing in bank or the gain on temporary investment are capitalized; for common borrowing
the weighted average of asset expenditure of the part that the cumulative asset expenditure exceeds special borrowing is multiplied
by the capitalization rate of the occupied common borrowing to determine capitalization amount. Capitalization rate is calculated
and determined according to the weighted average rate of common borrowing.In the period of capitalization the exchange difference of special borrowing in foreign currency is fully capitalized; the exchange
difference of special borrowing in foreign currency is included in the current profits and losses.
20. Intangible Assets
The Company’s intangible assets include land use rights software use rights patents and others.Intangible assets are initially measured at cost and their service life is analyzed and determined when intangible
assets are acquired. If the service life of intangible assets is limited the intangible assets shall be amortized by the
method that can reflect the expected realization method of the economic benefits related to the assets within the
expected service life since they are available for use. The method of line shall be used for amortization if no expected
realization method can be determined reliably. Intangible assets with uncertain service life shall not be amortized.The amortization method of intangible assets with limited service life is as follows:
Category Service life Amortization method Note
Land use rights Stipulated in the land certificate Method of line
Patent use right 10 years Method of line
Software use rights 1-3 years Method of line
Trademark right 10 years Method of line
At the end of each year the Company reviews the service life and amortization method of intangible assets with
limited service life. If the estimate is different from the previous one the original estimate shall be adjusted and
treated as per accounting estimate change.If it is estimated that an intangible assets can no longer bring future economic benefits to the enterprise on the date of
balance sheet this carrying value of the intangible asset shall be transferred into the current profit and loss.The method of provision for impairment assets on intangible assets was stated in the Note V-22.
37Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
21. Research and Development Expenditures
The Company’s R&D expenditure relates directly to R&D activities including R&D personnel’s employee remuneration direct
input expenses depreciation charges and long-term deferred expenses design expenses equipment commissioning expenses
amortization expenses of intangible assets commissioned external research and development expenses and other expenses etc.The wages of R&D personnel are allocated to R&D expenditure based on project hours. R&D activities that share equipment
production lines or sites with other production and operational activities are allocated to R&D expenditure based on the
proportion of hours or area used.The expenditures for internal research and development projects of an enterprise shall be classified into research expenditures and
development expenditures.The research expenditures shall be recorded into the profit or loss for the Current Period.The development expenditures can be capitalized only when they satisfy the following conditions simultaneously: a) It is feasible
technically to finish intangible assets for use or sale; b) It is intended to finish and use or sell the intangible assets; c) The
usefulness of methods for intangible assets to generate economic benefits shall be proved including being able to prove that there
is a potential market for the products manufactured by applying the intangible assets or there is a potential market for the
intangible assets itself or the intangible assets will be used internally; d) It is able to finish the development of the intangible assets
and able to use or sell the intangible assets with the support of sufficient technologies financial resources and other resources; e)
The development expenditures of the intangible assets can be reliably measured. The development expenditures shall be recorded
into profit or loss for the Current Period when they don’t satisfy the following conditions.The research and development project of the Company will enter the development stage after meeting the above conditions and the
project is approved and initiated through technical feasibility and economic feasibility study.The capitalized expenditure in the development stage is listed as development expenditure on the balance sheet and it will be
transferred to intangible assets from the date when the project reaches the intended purpose.
22. Long-term Asset Impairment
For long term equity investment in subsidiaries associated enterprises and joint ventures investment property which follow-up
measurement is carried out by cost pattern fixed assets construction in progress right-of-use assets intangible assets goodwill
etc. (excluding inventory deferred income tax assets financial assets) the impairment of assets shall be determined according to
the following methods:
On the date of the balance sheet determination shall be made to see whether there is any sign of possible impairment of assets. If
there is the Company will estimate its recoverable amount and conduct impairment test. For goodwill intangible assets with
uncertain service life and intangible assets that have not reached the serviceable state due to business combination impairment test
shall be carried out every year regardless of whether there is any sign of impairment.The recoverable amount is determined according to the net amount of the fair value of the asset minus the disposal expenses and
the present value of the expected future cash flow of the asset the higher amount shall prevail. The Company estimates the
recoverable amount on the basis of a single asset. If it is difficult to estimate the recoverable amount of a single asset the
recoverable amount of the asset group shall be determined based on the asset group to which the asset belongs. The asset group is
determined on the basis of whether the main cash inflow generated by the asset group is independent of the cash inflow of other
assets or asset groups.When the recoverable amount of an asset or asset group is lower than its carrying value the Company will write down its carrying
value to the recoverable amount and the written down amount will be included in the current profit and loss and the
corresponding asset impairment reserve will be accrued.Regarding the impairment test of goodwill the carrying value of goodwill formed by business combination shall be apportioned to
38Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
the relevant asset group in a reasonable way from the date of purchase. If it is difficult to apportion to the relevant asset group it
shall be apportioned to the relevant combination of asset group. The relevant asset group or combination of asset groups is the one
that can benefit from the synergy effect of business combination and is the one smaller than the reportable segment determined by
the Company.In the impairment test if there is any sign of impairment in the asset group or combination of asset groups related to goodwill first
impairment test shall be carried out on the asset group or combination of asset groups not containing goodwill to calculate the
recoverable amount and recognize the corresponding impairment loss. Then impairment test shall be carried out on the asset group
or combination of asset group containing goodwill to compare the carrying value with the recoverable amount. If the recoverable
amount is lower than the carrying value the impairment loss of goodwill shall be recognized.Once the asset impairment loss is recognized it will not be reversed in the future accounting period.
23. Long-term Deferred Expenses
The long-term deferred expenses incurred by the Company are valued at the actual cost and amortized averagely according to the
expected benefit period. For long-term deferred expenses the amortized value that cannot benefit the future accounting period
shall be included in the current profit and loss.
24. Payroll
(1) Payroll Scope
Payroll refers to the various forms of remuneration or compensation given by an enterprise for services provided by employees or
for the termination of employment relations. Payroll mainly includes short-term salary welfare after departure termination
benefits and other long-term staff welfare. Benefits provided to employees’ spouses children dependents survivors of deceased
employees and other beneficiaries also belong to the payroll.Based on liquidity payroll is presented in the balance sheet under the items “payroll payable” and “long-term payroll payable”.
(2) Accounting Treatment of Short-term Salary
During the accounting period in which employees provide services the Company recognizes the actual employee wages bonuses
social insurance premiums such as medical insurance premiums work-related injury insurance premiums and maternity insurance
premiums and housing provident funds paid to employees according to the prescribed standards and proportions as liabilities and
included them in the current profit and loss or related asset costs.
(3) Accounting Treatment of the Welfare after Departure
The post-employment benefit plan includes a defined contribution plan and a defined benefit plan. Among them the defined
contribution plan refers to the post-employment benefit plan that the enterprise no longer assumes further payment obligations
after the fixed fund has paid a fixed fee; the defined benefit plan refers to the post-employment benefit plan other than the defined
benefit plan.Defined contribution plan
The defined contribution plan includes basic pension insurance and unemployment insurance.During the accounting period in which employees provide services the amount of deposit payable calculated according to the
defined contribution plan is recognized as a liability and included in the current profit and loss or related asset costs.
39Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
(4) Accounting Treatment of the Termination Benefits
The Company relieves the labor relation with the employees before the due date of the labor contacts or puts forward the advice of
providing the compensation for urging the employees volunteered to receive the downsizing and when the Company could not
unilaterally withdraw the demission welfare owning to the relieving plan of the labor relation or the downsizing advice should
confirm the liabilities of the employees’ salary from the demission welfare on the earlier day between the cost confirmed by the
Company and the cost related to the reorganization of the payment of the termination benefits and includes which in the current
gains and losses.
(5) Accounting Treatment of the Welfare of Other Long-term Staffs
Other long-term employee benefits provided by the Company to employees that meet the conditions of defined contribution plans
shall be handled in accordance with the above-mentioned relevant provisions on defined contribution plans. Those in line with the
defined benefit plan shall be handled in accordance with the above-mentioned relevant provisions on the defined benefit plan.However the part of “changes caused by remeasuring the net liabilities or net assets of the defined benefit plan” in the salary cost
of relevant employees shall be included in the current profit and loss or the relevant asset cost.
25. Provisions
If the obligation related to contingency meets the following conditions at the same time the Company will recognize it as a
provision.
(1) The obligation is the current obligation assumed by the Company;
(2) The performance of the obligation is likely to cause an outflow of economic benefits of the Company;
(3) The amount of the obligation can be measured reliably.
The provisions are initially measured in accordance with the optimal estimate of the necessary expenditures for the fulfillment of
the current obligation with factors such as risks uncertainty and the time value of money related to contingencies taken into
consideration comprehensively. Where the time value of money has a significant impact the best estimate is determined by
discounting the relevant future cash outflow. The Company re-checks the carrying value of the provisions on the balance sheet
date and adjusts the carrying value to reflect the current best estimate.If all or part of the expenditure required to settle recognized provisions is expected to be compensated by a third party or other
parties the amount of compensation shall be recognized separately as an asset only when it is substantially certain that it will be
received. The recognized amount of compensation shall not exceed the carrying value of the recognized liabilities.
26. Revenue
Accounting policies adopted for the recognition and measurement of revenue disclosed by type of business
(1) General Principle
The Company recognizes revenue when it has fulfilled its contract performance obligation in a contract namely when the
customer obtains the control over the related commodity or service.If a contract contains two or more performance obligations the Company allocates transaction price to single performance
obligations on the contract commencement date according to the relative ratio of separate price of goods or services committed by
single performance obligation and income is measured according to the transaction price allocated to single performance
obligation.
40Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
When meeting one of the following conditions the Company belongs to performance of contract performing obligations in a
period or otherwise the Company belongs to performance of contract performing obligations at a point of time:
a) While the Company is performing the contract the customer acquires and consumes the economic benefit arising from
performance by the Company.b) The customer can control the goods in construction in the course of performance by the Company.c) The goods outputted in the course of performance by the Company have irreplaceable purpose and the Company has the right
to collection of money for the completed performance part cumulative up to now in the whole term of contract.For the performance obligation performed in a period the Company confirms income according to the performance progress in
such period. When the performance progress cannot be reasonably determined if the cost that the Company has incurred is
expected to be compensated income is confirmed according to the cost amount that has occurred until the performance progress
can be reasonably determined.For the performance obligation performed at a point of time income is confirmed at the point of time when the customer acquires
the control right to relevant goods or services. When it judges whether the customer has acquired the control right to the goods or
services the Company will consider the following indications:
a) The Company enjoys the current collection right to the goods or services i.e. the customer undertakes current payment
obligation to the goods.b) The Company has transferred the legal ownership of the goods to the customer that is the customer has owned the legal
ownership of the goods.c) The Company has transferred the kind of the goods to the customer namely the customer has possessed the good in kind.d) The Company has transferred the major risks and remuneration on the ownership of the goods i.e. the customer has acquired
the major risks and remuneration on the ownership of the goods.e) The customer has accepted the goods or services.f) Other indications showing that the customer has acquired the control right to the goods.The Company has transferred goods or services and has the right to collect consideration (and the right depends on factors other
than time elapse) as contract assets and contract asset is accrued impairment on the basis of expected credit loss (refer to Note V-
11. The right of the Company unconditionally (only depending on time elapse) charging consideration from the customer is listed
as receivable. The obligation of the Company that shall transfer goods or services to the customer for the consideration that has
been or shall be collected is contract liability.The contract assets and contract liabilities under the same contract are listed in net amount. If net amount is debit balance it is
listed in the items “contract asset” or “other non-current asset” according to its fluidity; if net amount is credit balance it is listed
in the items “contract liability” or “other non-current asset” according to its fluidity.
(2) Specific Methods
The specific income confirming methods of the Company are following:
For income of domestic products after the Company delivers products to the purchaser according to the provisions of the contract
and the purchaser confirms receipt the purchaser acquires the control right of products and the Company confirms income.For income of exportable products after the Company completes customs declaration of products departure and obtains bill of
lading according to the provisions of the contract the purchaser acquires the control right of products and the Company confirms
income.Differences in methods for the recognition and measurement of revenue caused by different business models for the same type of
business
Not applicable.
41Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
27. Contract Costs
Contract cost includes the incremental cost incurred for acquiring contract and contract performance cost.The incremental cost incurred for acquiring contract refers to the cost that will not occur if the Company has not acquired contract
(for example sales commission). If the cost is expected to be recovered the Company regards it as contract acquiring cost and
confirms it as an asset. The expenses incurred by the Company for acquiring contract other than the incremental cost expected to
be recovered are included in the current profits and losses at the time of occurrence.If the cost incurred for performance of contract does not belong to inventory and other scope of other corporate accounting
standards and meets the following conditions the Company will regard it as contract performance cost and confirm it as an asset:
a) The cost is directly related to a copy of contract currently acquired or expected to be acquired including direct labor direct
materials manufacture expenses (or similar expenses) cost determined to be undertaken by the customer and other cost incurred
due to the contract;
b) The cost increases the resources of the Company that will be used for performance of contract obligations in the future;
c) The cost is expected to be recovered.The assets confirmed by the contract acquiring cost and the assets confirmed by the contract performance cost (“assets related tocontract cost”) are amortized according to the same basis as confirmation of goods or service income related to the asset and are
included in the current profits and losses. If the amortization term does not exceed one year it will be included in the current
profits and losses at the time of occurrence.When the carrying value of an asset related to contract cost is higher than the difference between the following two items the
Company accrues provision for impairment to the excessive part and confirms it as asset impairment loss:
a) The remaining consideration that the Company expects to acquire from transfer of goods or services related to the asset;
b) The cost that will occur for transfer of such related goods or services as estimated.
28. Government Grants
Government grants are recognized when they meet the conditions attached to government grants and when they can be received.Government grants for monetary assets shall be measured according to the amount received or receivable. Government grants for
non-monetary assets shall be measured by fair value.Asset related government grants refer to the government grants obtained by the Company for acquisition and construction or other
forms of long-term assets. In addition they are government grants related to income.Regarding the government grants that the government document does not specify the object of subsidy and can form long-term
assets the part of government subsidy corresponding to the asset value shall be regarded as the asset-related government subsidy
and the rest shall be regarded as income-related government subsidy. If it is difficult to distinguish the government subsidy shall
be regarded as the income-related government subsidy.The government grants related to assets shall be recognized as the deferred income which shall be included in the profit and loss
in installment in a reasonable and systematic way within the service life of the relevant assets. Income-related government grants
which are used to compensate the relevant costs or losses incurred shall be included in the current profit and loss. Those used to
compensate the relevant costs or losses in the later period shall be included in the deferred income and shall be included in the
current profit and loss during the recognition period of the relevant costs or losses. The government grants measured according to
the nominal amount shall be directly included in the current profit and loss. The same method is adopted for the same or similar
government grants businesses of the Company.Government grants related to daily activities shall be included in other incomes according to the essence of business transactions.Government grants irrelevant to daily activities are included in non-operating income.
42Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
When the recognized government grants need to be returned and are used to offset the carrying value of related assets when
initially recognized the carrying amount of the assets shall be adjusted; the book balance of relevant deferred income shall be
offset if there is a balance of relevant deferred income and the excess part shall be included in the current profit and loss.Otherwise it shall be directly included in the current profit and loss.Regarding the interest subsidy of the policy preferential loan obtained if the Ministry of Finance allocates the interest subsidy to
the loan bank the actual received loan amount shall be taken as the entry value of the loan and the borrowing costs shall be
calculated according to the loan principal and the policy preferential interest rate. If the Ministry of Finance allocates the interest
subsidy directly to the Company the interest subsidy will offset the borrowing costs.
29. Deferred Income Tax Assets/Deferred Income Tax Liabilities
Income tax includes current income tax and deferred income tax. All shall be included in the current profit and loss as income tax
expense except the adjustment goodwill arising from business combination or the deferred income tax related to the transactions
or events directly included in the owner’s equity is included in the owner’s equity.Pursuant to the temporary difference between the carrying value of assets and liabilities on the date of balance sheet and the tax
basis the Company recognizes the deferred income tax by balance sheet liability method.For all taxable temporary differences related deferred income tax liabilities are recognized unless the taxable temporary
differences are generated in the following transactions:
(1) The initial recognition of goodwill or the initial recognition of assets or liabilities arising from transactions with the following
characteristics: The transaction is not a business combination and does not affect the accounting profit or income tax payable
when it occurs (Excluding transactions that initially recognized assets and liabilities resulting in equal taxable temporary
differences and deductible temporary differences.);
(2) Regarding the taxable temporary difference related to the investment of subsidiaries joint ventures and associated enterprises
the time of reversal of the temporary difference can be controlled and the temporary difference is unlikely to be reversed in the
foreseeable future.For deductible temporary differences deductible losses and tax credits that can be carried forward in subsequent years the
Company is likely to obtain the future income tax payable as the limit to offset the deductible temporary differences deductible
losses and tax credits in which way to recognize the deferred income tax assets arising from the deductible temporary differences
deductible losses and tax credits unless the deductible temporary differences are generated in the following transactions:
(1) The transaction is not a business combination and does not affect the accounting profit nor income tax payable when it occurs
(Excluding transactions that initially recognized assets and liabilities resulting in equal taxable temporary differences and
deductible temporary differences.);
(2) The corresponding deferred income tax assets shall be recognized if the deductible temporary differences related to the
investment of subsidiaries joint ventures and associated enterprises meet the following conditions simultaneously: The temporary
differences are likely to be reversed in the foreseeable future and the income tax payable used to deduct the deductible temporary
differences is likely to be obtained in the future.On the balance sheet date the deferred income tax assets and deferred income tax liabilities shall be measured by the Company on
the basis of the applicable tax rate during the period when the assets are expected to be recovered or the liabilities are expected to
be paid off and the income tax impact on the expected recovery of assets on the date of the balance sheet or on the method to pay
off the liabilities shall be reflected.
43Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
The carrying value of deferred income tax assets shall be reviewed at each balance sheet date. If it is unlikely to obtain sufficient
income tax payable to offset against the benefit of the deferred income tax asset the carrying value of the deferred income tax
assets shall be written down. Any such write-down should be subsequently reversed where it becomes probable that sufficient
income tax payable will be available.As at the balance sheet date deferred income tax assets and deferred income tax liabilities are presented as a net amount when the
following conditions are simultaneously met:
(1) The tax entity within the Company has a legally enforceable right to set off current income tax assets against current income
tax liabilities;
(2) The deferred income tax assets and deferred income tax liabilities are related to income taxes levied by the same taxation
authority on the same taxable entity within the Company.
30. Lease
(1) Identification of Lease
On the start date of the contract the Company assessed as the lessee or the lessor whether the customers in the contract are entitled
to obtain almost all the economic benefits arising from the use of the identified assets during the use period and have the right to
dominate the use of the identified assets during the use period. If a party to the contract transferred the right allowing the control
over the use of one or more assets that have been identified within a certain period in exchange for a consideration such contract
is determined by the Company to be a lease or includes a lease.
(2) The Company as the Lessee
On the commencement date of the lease term the Company recognizes the right-of-use assets and lease liabilities for all leases
except for short-term leases and low-value asset leases with simplified treatment.For accounting policies for the right-of-use assets see Note V-32.Lease liabilities are initially measured in line with the lease payments not yet paid on the commencement date of the lease term
using the present value calculated by the interest rate implicit in lease. If the interest rate implicit in lease cannot be determined
the incremental borrowing rate shall be used as the discount rate. Lease payments include: Fixed payment and substantial fixed
payment and the relevant amount after deducting the lease incentive if any; variable lease payments depending on index or ratio;
exercise price of the purchased option provided that the lessee reasonably determines that the option will be exercised; the amount
to be paid for the exercise of the lease termination options provided that the lease term reflects that the lessee will exercise the
options to terminate the lease; and estimated payments due to the guaranteed residual value provided by the lessee. Subsequently
it calculates the interest expenses of the lease liabilities during each period of the lease term at a fixed periodic interest rate and
includes them in current profit and loss. Variable lease payments that are not covered in the measurement of the lease liabilities are
included in current profit or loss when actually incurred.Short-term lease
A short-term lease refers to a lease for a period not exceeding 12 months on the commencement date of the lease except for leases
with a purchase option.The Company includes the short-term lease payment in the cost of relevant assets or the current profit and loss in each period of
the lease term by the method of line.Low-value asset lease
A low-value asset lease refers to a lease where the value of a single leased asset is less than RMB40000 when the asset is new.The Company includes the lease payment of the low-value asset lease in the cost of relevant assets or the current profit and loss in
44Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
each period of the lease term by the method of line.For low-value asset lease it chooses to adopt the aforesaid simplified treatment method in line with the specific status of each
lease.Lease change
If a lease changes and meets the following conditions simultaneously the lease change shall be regarded as a separate lease for
accounting treatment: a) The lease change expands its lease cope by increasing one or multiple use rights of lease assets; and b)
The increased consideration is equivalent to the amount of the separate price for the expanded part of the lease which is adjusted
according to the contract.Where the lease change is not regarded as a separate lease for accounting treatment on the effective date of the lease change by
the Company the consideration of the contract is amortized again upon change the lease term is redetermined and the lease
liabilities are remeasured according to the present value that is calculated by the lease payments and the revised discount rate upon
change.The Company shall correspondingly reduce the carrying value of the right-of-use assets and include the profit or loss of the lease
terminated in part or whole in the current profit or loss if the lease change narrows the scope of lease or shortens the lease term.The Company shall correspondingly adjust the carrying value of the right-of-use assets if other lease changes result in the re-
calculation of the lease liability.
(3) The Company as the Lessor
When the Company is a lessor it shall recognize leases that substantially transfer all risks and remuneration related to the
ownership of assets as finance leases and leases other than finance leases as operating leases.Finance lease
In a finance lease the Company recognizes the net lease investment as the book value of finance lease receivables on the
commencement date of the lease term. The net lease investment is the sum of the unguaranteed residual value and the present
value of lease receivables not yet received on the commencement date of the lease term at the interest rate implicit in lease. The
Company calculates and confirms the interest income at a fixed periodic interest rate in each period in the lease term. Variable
lease payments obtained that are not included in the net lease investment for measurement where the Company is the lessor are
included in the profit or loss of the Current Period when actually incurred.Accounting treatment shall be conducted for the derecognition and impairment of finance lease receivables in accordance with the
provisions of the Accounting Standards for Business Enterprises No.22—Recognition and Measurement of Financial Instruments
and the Accounting Standards for Business Enterprises No.23—Transfer of Financial Assets.Operating lease
The Company shall recognize the current profit and loss of the rent of the operating lease in each period of the lease term by the
method of line. The initial direct costs related to the operating lease shall be capitalized amortized within the lease term on the
same basis as the recognition of rental earning and included in profit or loss for the Current Period. The received variable lease
payments related to the operating lease that are not included in the lease payments receivable are included in profit or loss for the
Current Period when they are actually incurred.Lease change
Where an operating lease changes the accounting treatment is conducted for it which is regarded as a new lease from the effective
date of the change and receivables in advance or lease receivables related to lease before change are deemed as the receivables in
the new lease.Where a finance lease changes and meets the following conditions simultaneously the change is regarded as a separate lease by
the Company for accounting treatment: a) The change expands its lease cope by increasing one or multiple use rights of lease
assets; and b) The increased consideration is equivalent to the amount of the separate price for the expanded part of the lease
which is adjusted according to the contract.
45Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Where a finance lease changes and is not regarded as a separate lease for accounting treatment the Company treats the changed
lease under the following circumstances: a) If the change comes into force on the commencement date of the lease term the lease
will be clarified as an operating lease while it will be regarded as a new lease for accounting treatment by the Company on the
effective date of the lease change and the net lease investment before the effective date of lease change will be regarded as the
carrying value of lease assets; and b) If the change comes into force on the commencement date of the lease term the lease will be
clarified as a finance lease the Company will carry out accounting treatment in accordance with the provisions on modification or
renegotiation of a contract of the Accounting Standard for Business Enterprises No. 22—Recognition and Measurement of
Financial Instruments.
31. Right-of-Use Assets
(1) Recognition Conditions for Right-of-Use Assets
The term “right-of-use assets” refers to the right of the lessee to use the leased assets during the lease term.At the start date of the lease term the Company initially measures the right-of-use assets at cost. The cost includes: the initial
measurement amount of lease liabilities; the lease payments paid on or prior to the inception of the lease (less the related amount
of lease incentives already enjoyed if any); the initial direct cost incurred by the lessee; and the anticipated cost of dismantling and
removing the leasehold property restoring the site where the leasehold property is located or bringing the leasehold property back
to the state agreed upon in the lease terms. As the lessee the Company shall recognize and measure the cost of demolition and
restoration in accordance with the Accounting Standards for Business Enterprises No.13 - Contingencies. Subsequent adjustments
are made for any re-measurement of the lease liabilities.
(2) Depreciation Method of Right-of-Use Assets
The Company uses the method of line for depreciation. Where it can be reasonably certain that the Company the lessee can
obtain ownership of the leased assets at the expiry of the lease term the leased assets are depreciated over the residual service life.Where it cannot be reasonably certain that the Company can obtain ownership of the leased assets at the end of the lease term the
leased assets are depreciated at the shorter of the lease term and the residual service life of the leased assets.
(3) Impairment test method and impairment provision method of right-of-use assets See Note V-22.
32. Safety Production Costs and Costs for Sustaining Simple Reproduction
In accordance with the regulations of the Notice on Issuing the Management Measures for the Provision and Use of Enterprise
Production Safety Costs (C.Z. [2022] No. 136) issued by the Ministry of Finance and the Ministry of Emergency and based on the
above actual annual operating revenue of power generation and supply enterprises the Company adopts the method where the
deduction rate declines when the operating revenue increases to deduct safety production costs according to the following
standards:
Annual actual sales revenue standard Proportion of safety production cost (%)
Not exceeding RMB10 million 3
RMB10 million to RMB100 million 1.5
RMB100 million to RMB1 billion 1
RMB1 billion to RMB5 billion 0.8
Safety production costs and costs for sustaining simple reproduction are included in the cost of relevant production or current loss
and profit when deducted and are simultaneously included in the “specific reserve”.When using the deducted safety production costs and the costs for sustaining simple reproduction in conformity with regulations
the outgoing expenditures shall directly be used to offset the specific reserve; the costs becoming fixed assets shall be aggregated
under “construction in progress” and then be recognized as fixed assets when the safety project is completed and reaches the
46Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
intended available status; The aforesaid fixed assets will not be depreciated as accrued in the future period. The aforesaid fixed
assets will not be depreciated as accrued in the future period.
33. Repurchase of Shares
Before the shares repurchased by the Company are cancelled or transferred they are managed as treasury shares and all
expenditures for the repurchase of shares are transferred to the cost of treasury shares. Consideration and transaction costs paid in
share repurchase reduce shareholders’ equity. When buying back transferring or cancelling shares in the Company no profits or
losses are recognized.The transfer of inventory shares shall be credited to the capital reserve on the basis of the difference between the amount actually
received and the carrying amount of the treasury stock. Write off surplus reserves and retained earnings if capital reserves are
insufficient to offset. Write-off of treasury stocks can reduce share capitals in par with par value and number of write-out stocks.The capital reserve is offset based on the difference between carrying amount and par value of cancelled treasury stocks. Write off
surplus reserves and retained earnings if capital reserves are insufficient to offset.
34. Material Accounting Judgments and Estimates
The Company evaluates the important accounting estimates and key assumptions adopted on an ongoing basis based on historical
experience and other factors including reasonable expectations of future events. Important accounting estimates and critical
assumptions that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities within the
next fiscal year are listed as follows:
Classification of financial assets
The significant judgments involved when the Company determines the classification of financial assets include analysis of
business models and contractual cash flow characteristics.The Company determines the business model for managing financial assets at the level of the financial asset portfolio taking into
account factors such as the approach of evaluating and reporting the performance of financial assets to key management personnel
the risks affecting the performance of financial assets and the manner in which they are managed and way in which the relevant
business management personnel are compensated.When the Company evaluates whether the contractual cash flows of financial assets are consistent with the basic lending
arrangements it makes the following main judgments: whether the time distribution or amount of the principal may change during
the duration due to early repayment; whether the interest is only Includes time value of money credit risk other fundamental
lending risks and consideration against costs and profits. For example whether the amount of early repayment reflects only the
outstanding principal and interest based on the outstanding principal as well as reasonable compensation paid for early
termination of the contract.Measurement of expected credit losses of accounts receivable
The Company calculates the expected credit loss of accounts receivable using the exposure to default risk of accounts receivable
and the expected credit loss ratio and determines the expected credit loss ratio based on the probability of default and the default
loss ratio. When determining the expected credit loss ratio the Company uses data such as internal historical credit loss experience
and adjusts historical data to take into account current conditions and forward-looking information. When considering forward-
looking information the Company uses indicators such as the risk of economic downturn and changes in the external market
environment technological environment and customer profile. The Company regularly monitors and reviews the assumptions
related to the calculation of expected credit losses.Goodwill impairment
The Company assesses at least annually whether goodwill has been impaired. This requires estimating the use value of the asset
47Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
group to which goodwill has been assigned. When estimating the use value the Company shall estimate the future cash flows from
the asset group and select the appropriate discount rate to calculate the present value of future cash flows at the same time.Deferred income tax assets
To the extent that it is probable that sufficient taxable profit will be available to offset the losses the Company recognizes deferred
income tax assets for all unused tax losses. This requires the Company’s management to use many judgments to estimate the
timing and amount of future taxable profits taking into account tax planning strategies so as to determine the amount of deferred
income tax assets to be recognized.Determination of fair value of unlisted equity investment
The fair value of unlisted equity investment is the expected future cash flows discounted at the current discount rate for items with
similar terms and risk characteristics. Such valuation requires the Company to estimate expected future cash flows and discount
rates and is therefore subject to uncertainty. Under limited circumstances if the information used to determine fair value is
insufficient or if the range of possible estimates of fair value is wide and the cost represents the best estimate of fair value within
that range the cost may represent its appropriate estimate of fair value within that range of distribution.
35. Changes in Significant Accounting Policies and Estimates
(1) Significant Changes in Accounting Policies
□ Applicable □ Not applicable
(2) Significant Changes in Accounting Estimates
□ Applicable □ Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of the New
Accounting Standards Implemented since 2025
□ Applicable □ Not applicable
VI Taxation
1. Main Taxes and Tax Rate
Category of taxes Tax basis Tax rate
Taxable value-added amount (the taxable amount is
calculated by multiplying the taxable sales by the applicable
VAT 13% 9% 6% 5% 3% 0
tax rate and deducting the input tax allowed to be deducted in
the Current Period)
Urban maintenance and
Turnover tax actually paid 7% 5%
construction tax
Enterprise income tax Income tax payable 0 11% 15% 16.5% 20% 25%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Taxpayer Income tax rate
The Company 15%
LuFeng Company 15%
Lulian New Materials 15%
48Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Lu Thai Hong Kong 16.50? %?
Luqun Textile 25%
Xinsheng Thermal Power 25%
Shanghai Luthai 2?0%?
Lujia Import & Export 20%
Zhishu Consulting 2?0?%
Lu Thai Vocational Training School 0? ?%
Banyang Villa 20? ?%
Huilin International 15%
Tianyi Apparel 0%
VACL 11%
2. Tax Preference
In accordance with the Notice for Announcing the First Batch of Hi-tech Enterprise Identification List of Shandong Province in
2023 (L.K.Z. [2024] No. 4) the Company was identified as a hi-tech enterprise and the certificate issuing date was November 29
2023; the majority-owned subsidiary LuFeng Company Limited was identified as a hi-tech enterprise and the certificate issuing
date was November 29 2023. In accordance with the Notice for Announcing Hi-tech Enterprise List of Shandong Province in
2022 the wholly-owned subsidiary Lulian New Materials was identified as a hi-tech enterprise and the certificate issuing date was
December 12 2022. Therefore in accordance with Article 28 of the Enterprise Income Tax Law of the People’s Republic of China
and the Announcement of the State Administration of Taxation on Issues Concerning the Implementation of Preferential Income
Tax Policies for High-tech Enterprises (Announcement No. 24 [2017] of the State Administration of Taxation) the applicable
enterprise income tax rate shall be 15%.The wholly-owned subsidiaries including Shanghai Luthai Zhishu Consulting Banyang Villa and Lujia IMP. & EXP. have been
recognized as small low-profit enterprises. According to the Announcement of the Ministry of Finance and the State Taxation
Administration on Further Implementing the Preferential Income Tax Policies for Micro and Small Enterprises (Announcement
No. 13 [2022] of the Ministry of Finance and the State Taxation Administration) the income tax payable of small low-profit
enterprises shall be calculated at a reduced rate of 25% and enterprise income tax shall be levied at a tax rate of 20%.The wholly-owned subsidiary Lu Thai Vocational Training School has been recognized as a non-profit making organization
exempt from tax between 2021 and 2025. According to Article 26 Item 4 of the Enterprise Income Tax Law of the People’s
Republic of China the policy whereby eligible non-profit making organizations are exempt from enterprise income tax shall apply
to the foregoing subsidiary.Lu Thai (HK) Textile Co. Ltd. (hereinafter refers as Lu Thai (HK) Textile) the wholly-owned subsidiary of the Company was
incorporated in Hong Kong SAR whose profit tax shall be paid at tax rate of 16.5%.The wholly own subsidiary VACL according to the Burma’s Special Economic Zone Law issued by Pyidaungsu Hluttaw VACL
enjoys tax preference on enterprise income tax of 7 (7 years tax holiday) + 5 (5 years tax revenues drop by half) + 5 (re-invest the
profits within 1 year and continues to enjoy the half tax revenues 5 years afterwards). After grace period enterprise income tax
rate was of 22%. Year 2025 is the third year of tax halving period with the enterprise income tax rate at 11%.
49Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
The wholly-owned subsidiary Tianyi Apparel enjoys a three-year corporate income tax exemption starting from the operating
year in accordance with the Myanmar Investment Law issued by the Myanmar Parliament. After grace period enterprise income
tax rate was of 22%.The wholly-owned subsidiary Huilin International which was registered in the Hainan Free Trade Port and operates in the
encouraged industry shall pay enterprise income tax at a reduced tax rate of 15% between January 1 2020 and December 31
2027 according to the Announcement of the Ministry of Finance and the State Taxation Administration on the Preferential Income
Tax Policies for Enterprises Registered in the Hainan Free Trade Port (Announcement No. 31 [2020] of the Ministry of Finance
and the State Taxation Administration) and the Notice of the Ministry of Finance and the State Taxation Administration on
Continuing to Implement the Preferential Income Tax Policies for Enterprises Registered in the Hainan Free Trade Port (C.S.[2025] Document No. 3).VII Notes to Main Items of Consolidated Financial Statements
1. Monetary Capitals
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 7356389.93 4283695.11
Bank deposits 2131393967.95 2051573093.26
Other monetary capital 363757.52
Total 2139114115.40 2055856788.37
Of which: Total amount deposited overseas 336686299.79 293656210.45
Other notes:
As at June 30 2025 the restricted monetary capital amounted to RMB0.The interest receivable in bank deposits was RMB22235716.93.
2. Held-for-trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value through profit or loss 1049351158.38 693972672.64
Of which:
Investment in debt instruments 620681575.78 230874092.14
Equity instrument investment 428669582.60 462622130.31
Derivative financial assets 476450.19
Total 1049351158.38 693972672.64
3. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
50Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Bank acceptance bills 38127660.44 50959990.35
Trade acceptance notes 902500.00 380000.00
Total 39030160.44 51339990.35
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Withdra Carrying Withdra Carrying
Amoun Percent wal
Amount value
Percenta wal
Amount Amount value
t age (%) proporti ge (%) proporti
on on
Of which:
Notes
receivable
of bad debt 39077 100.00 47500. 390301 513599 20000.0 513399
0.12%100.00%0.04%
provision 660.44 % 00 60.44 90.35 0 90.35
withdrawn
by groups
Of which:
Commercia
l 95000 47500. 902500. 400000. 20000.0 380000.
2.43%5.00%0.78%5.00%
acceptance 0.00 00 00 00 0 00
bills
Bank
acceptance
38127381276509599509599
bills with 97.57% 99.22%
660.4460.4490.3590.35
low credit
ratings
39077100.0047500.39030151359920000.0513399
Total 100.00%
660.44%0060.4490.35090.35
If adopting the general mode of expected credit loss to withdraw bad debt provision of notes receivable:
□ Applicable □ Not applicable
(3) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Beginning Changes in the Current Period
Category Ending balance
balance Withdrawal Reversed or recovered Write-offs Others
Commercial
20000.0027500.0047500.00
acceptance bills
Total 20000.00 27500.00 47500.00
Of which significant amount of recovered or transferred-back bad debt provision for the Current Period:
□ Applicable □ Not applicable
51Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
(4) Notes Receivable Which Had Endorsed by the Company or Had Discounted and Had Not Due on the
Balance Sheet Date at the Period-End
Unit: RMB
Amount of recognition termination at the Amount of not terminated recognition at
Item
period-end the period-end
Bank acceptance bills 19797413.77
Total 19797413.77
4. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including one year) 762865482.86 904143884.57
One to two years 47999626.32 2598409.10
Two to three years 1368472.86 767071.40
More than three years 346166.33 435318.77
Three to four years 296191.00 206818.00
Four to five years 0.00 195961.82
Over five years 49975.33 32538.95
Total 812579748.37 907944683.84
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Withdra Carrying WithdraPercen Carrying
wal Percenta wal
Amount tage Amount value Amount Amount value
proporti ge (%) proporti
(%)
on on
Accounts
receivable
withdrawal
of Bad 144408 144408 138052 138052
0.18%100.00%0.15%100.00%
debt 2.86 2.86 5.86 5.86
provision
separately
accrued
Of
which:
Accounts
receivable 811135 99.82 638960 747239 906564 573956 849168
withdrawal 7.88% 99.85% 6.33%665.51 % 59.74 605.77 157.98 18.71 539.27
of bad debt
provision
52Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
of by
group
Of
which:
Undue
14608817.98146088164066164066
accounts 0.00% 18.07%
285.97%285.97967.38967.38
(L/C)
Undue
accounts
12316415.16129322121871108041113443106906
(credit 1.05% 11.90% 1.05%
487.50%7.16260.34036.630.94605.69
insurance
insured)
Undue
accounts 366379 45.09 183189 348060 489845 244922 465352
5.00%53.95%5.00%
(no credit 482.27 % 74.24 508.03 177.53 58.89 918.64
insurance)
Overdue
accounts
403652633734340279421355661528355202
(credit 4.97% 15.70% 4.64% 15.70%
52.874.7108.1684.316.7397.58
insurance
insured)
Overdue
accounts 135138 16.63 379465 971916 102475 251536 773217
28.08%11.29%24.55%
(no credit 156.90 % 13.63 43.27 392.13 42.15 49.98
insurance)
812579100.00653401747239907944587761849168
Total 8.04% 100.00% 6.47%
748.37%42.60605.77683.8444.57539.27
The category name of bad debt provision separately accrued: June 2025
Unit: RMB
Beginning balance Ending balance
Name Carrying Bad debt Carrying Bad debt Withdrawal Reason for
amount provision amount provision proportion withdraw
Customer in
Customer 1 1380525.86 1380525.86 1444082.86 1444082.86 100.00% financial
difficulty
Total 1380525.86 1380525.86 1444082.86 1444082.86
If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable:
□ Applicable □ Not applicable
(3) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the Current Period
Beginning
Category Reversed or Ending balancebalance Withdrawal Write-offs Others
recovered
Bad debt provision 58776144.57 6459634.43 -107738.00 3374.40 65340142.60
Total 58776144.57 6459634.43 -107738.00 3374.40 65340142.60
53Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
(4) Accounts Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Written-off accounts receivable 3374.40
Notes to verification of accounts receivable:
There were no write-offs of significant accounts receivable.
(5) Top 5 of the Ending Balance of the Accounts Receivable and the Contract Assets Collected According
to Arrears Party
Unit: RMB
Ending balance of
Proportion to total bad debt provision
Ending Ending balance of
Ending balance of ending balance of of accounts
balance of accounts
Name of the entity accounts accounts receivable and
contract receivable and
receivable receivable and impairment
assets contract assets
contract assets provision for
contract assets
Zichuan District Heating
61079346.6561079346.657.52%19309353.27
Guarantee Service Center
Customer A 50298449.85 50298449.85 6.19% 2035.79
Customer B 34567040.67 34567040.67 4.25% 2819874.07
Customer C 28376503.53 28376503.53 3.49% 1521247.14
Customer D 27336391.07 27336391.07 3.36% 1393884.30
Total 201657731.77 201657731.77 24.81% 25046394.57
5. Receivables Financing
(1) Receivables Financing Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Notes receivable 37620151.81 10234905.61
Less: Other comprehensive income-fair value change -120350.61 -50005.02
Total 37499801.20 10184900.59
(2) Notes Receivable Which Had Endorsed by the Company or Had Discounted and Had Not Due on the
Balance Sheet Date at the Period-End
Unit: RMB
Amount of recognition termination at the period- Amount of not terminated recognition at the period-
Item
end end
Bank acceptance bills 108816177.25
Total 108816177.25
54Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
6. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 24152797.11 23107489.38
Total 24152797.11 23107489.38
(1) Other Receivables
1) Other receivables classified by nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Export rebates 1204498.40 4399746.28
VAT to be returned 7825440.63 7514820.14
Payment on behalf 10863870.65 8666645.96
Guarantee deposit and cash deposit 2203023.23 2181386.82
Borrowings and petty cash 1859136.44 1255511.54
Others 6498909.30 5311251.41
Total 30454878.65 29329362.15
2) Disclosure by aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including one year) 18638028.05 18125208.20
One to two years 1956342.58 1153509.15
Two to three years 6254105.57 6434852.90
More than three years 3606402.45 3615791.90
Three to four years 54000.00 166000.00
Four to five years 112000.00 846.87
Over five years 3440402.45 3448945.03
Total 30454878.65 29329362.15
3) Disclosure by withdrawal methods for bad debts
□ Applicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Categor Withdra Carrying Withdray CarryingPercenta wal value Percenta walAmount Amount Amount Amount value
ge (%) proporti ge (%) proporti
on on
Of which:
Withdra 304548 630208 241527 293293 622187 231074100.00% 20.69% 100.00% 21.21%
wal of 78.65 1.54 97.11 62.15 2.77 89.38
55Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
bad debt
provisio
n by
group
Of which:
Bad debt
provisio 197409 987046. 187538 186700 933500. 177365
64.82%5.00%63.66%5.00%
n in 28.41 41 82.00 16.05 80 15.25
Stage 1
Bad debt
provisio 105509 515202 539891 104963 512535 537097
34.64%48.83%35.79%48.83%
n in 38.19 3.08 5.11 34.05 9.92 4.13
Stage 2
Bad debt
provisio 163012. 163012. 163012. 163012.
0.54%100.00%0.56%100.00%
n in 05 05 05 05
Stage 3
304548630208241527293293622187231074
Total 100.00% 20.69% 100.00% 21.21%
78.651.5497.1162.152.7789.38
Withdrawal of bad debt provision by adopting the general mode of expected credit loss:
Unit: RMB
First stage Second stage Third stage
Bad debt provision Expected credit loss in Expected credit loss inExpected credit loss of Total
the duration (credit the duration (credit
the next 12 months
impairment not occurred) impairment occurred)
Balance of January 1
933500.805125359.92163012.056221872.77
2025
Balance of January 1
2025 in the Current
Period
Withdrawal of the
53545.6126663.1680208.77
Current Period
Balance of June 30
987046.415152023.08163012.056302081.54
2025
Basis of classification of stages and percentage of provision for bad debts
Changes of carrying amount with significant amount changed of loss provision in the Current Period
□ Applicable □ Not applicable
4) Bad debt provision withdrawn reversed or recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the Current Period
Beginning
Category Charged-Reversed or Ending balancebalance Withdrawal off/Verificat Others
recovered
ion
Expected credit loss of the next
933500.8053545.61987046.41
12 months at the first stage
Expected credit loss in the
duration (credit impairment not 5125359.92 26663.16 5152023.08
occurred) at the second stage
56Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Expected credit loss in the
duration (credit impairment 163012.05 0.00 163012.05
occurred) at the third stage
Total 6221872.77 80208.77 0.00 0.00 0.00 6302081.54
5) Top 5 of the ending balance of the other receivables collected according to the arrears party
Unit: RMB
Proportion to total Ending balance
Name of the entity Nature Ending balance Aging ending balance of of bad debt
other receivables % provision
Within one year; one
General department of Rebate of to two years; two to
7825440.6325.70%3327232.52
taxation VAT three years; Over
three years
Withholding and
Payment on
remitting of personal 5065073.81 Within one year 16.63% 253253.69
behalf
endowment insurance
Withholding and
Payment on
remitting of personal 1269957.42 Within one year 4.17% 63497.87
behalf
medical insurance
Zichuan District Tax Export
1204498.40 Within one year 3.96% 60224.92
Bureau rebates
Withholding and
remitting of personal Payment on
1147576.25 Within one year 3.77% 57378.81
housing provident behalf
fund
Total 16512546.51 54.23% 3761587.81
7. Prepayments
(1) Prepayments Listed by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Percentage (%) Amount Percentage (%)
Within one year 132356488.10 99.86% 94018468.42 99.66%
One to two years 81487.69 0.06% 321877.26 0.34%
Two to three years 101808.00 0.08%
Total 132539783.79 94340345.68
Notes of the reasons of the prepayments aging over one year with significant amount but failed settled in time:
There were no significant prepayments aged over one year during the Reporting Period.
57Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
(2) Top 5 Prepayment in Ending Balance Collected According to the Prepayment Target
The prepayments to suppliers from the top five of prepaid parties classified based on the ending balance totals
RMB84781081.87 in the Current Period accounting for 63.97% of the total ending balance of the prepayments to suppliers.
8. Inventory
Whether the Company needs to comply with the disclosure requirements for the real estate industry
Not
(1) Category of Inventory
Unit: RMB
Ending balance Beginning balance
Falling price Falling price
reserves or reserves or
Item provision for provision forCarrying Carrying
impairment on Carrying value impairment on Carrying value
amount amount
contract contract
performance performance
cost cost
Raw materials 861633868.63 59031398.97 802602469.66 806501875.49 55650999.99 750850875.50
Goods in
437205502.409493261.67427712240.73520394109.826229881.12514164228.70
process
Inventory
952360327.28183571540.67768788786.61952987895.46208856231.77744131663.69
goods
Commissioned
13584476.9213584476.9210737638.4110737638.41
products
Materials in
21512339.5421512339.54
transit
2286296514.2034200313.2290621519.2019884406.
Total 252096201.31 270737112.88
77461830
(2) Falling Price Reserves of Inventory and Impairment Reserves for Contract Performance Costs
Unit: RMB
Increased amount of the Current Decreased amount for the Current
Beginning Period Period
Item Ending balance
balance Recovered or
Withdrawal Others Others
charged-off
Raw materials 55650999.99 3402176.21 21777.23 59031398.97
Work-in-
6229881.123274030.5610650.019493261.67
progress
Inventory
208856231.7722415168.5147348067.92351791.69183571540.67
goods
Total 270737112.88 29091375.28 0.00 47348067.92 384218.93 252096201.31
9. Current Portion of Non-current Assets
Unit: RMB
58Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Item Ending balance Beginning balance
Debt investment due within one year 150000000.00 150000000.00
Interest payable of bond investment 6297393.15 4176585.64
Total 156297393.15 154176585.64
(1) Investments in Debt Obligations Due within One Year
□ Applicable □ Not applicable
1) Significant debt investments maturing within one year at the end of the period
Unit: RMB
Actual interest rate Overdue principal
Coupon
Item Par value Due date
rate Ending Beginning Ending Beginning
balance balance balance balance
Return
150000000.00 3.00% December 22 2025
voucher
Total 150000000.00
(2) Other Investments in Debt Obligations Due within One Year
□ Applicable □ Not applicable
10. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Other tax 6705193.86 8592405.88
Prepaid income tax 2407586.80 37101.68
Prepaid other taxes 163707.23 205457.78
Convertible broken lot fund 199660.30 199662.42
Deposit for recognizance 3852177.98 49999919.97
Receivables from liquidation 7000000.00
Total 20328326.17 59034547.73
11. Long-term Equity Investments
Unit: RMB
Beginn Increase/decrease for the Current Period
Beginn Ending
ing
ing Gains Adjust Cash Withdr
Ending
balanc
balanc and ment bonus awal balancbalanc
Investe e of Additi Reduc Chang
e of
e onal ed losses of
or of e provisi
e provisi es of (carryi
(carryi recogn other profits impair Othersinvest invest other on foron for
ng ized compr annou ment
ng
impair
impair ment ment equity value)
value) under ehensi nced to provisi ment
ment the ve issue on
59Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
equity incom
metho e
d
I. Joint ventures
II. Associated enterprises
Ningb
o
Meish
an
Bonde
d Port
Area
Haoho
ng
Equity
Invest 31325 13866 18870
1411
ment 690.5 666.6 148.6
124.70
Partner 8 7 1
ship
(L.P.)
(herein
after
referre
d to as“Haohong
Investment”)
Ningb
o
Haoyi
ng
Equity
Invest
ment
Partner
88758-88741
ship
580.717414166.0
(L.P)
1.665
(herein
after
referre
d to as“Haoying
Investment”)
120081386610761
Subtot 1393
4271.666.61314.
al 710.04
29766
120081386610761
1393
Total 4271. 666.6 1314.
710.04
29766
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□ Applicable □ Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.
60Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
□ Applicable □ Not applicable
12. Other Non-current Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Equity instrument investment 70800000.00 70800000.00
Financial assets assigned measured
12000000.0012000000.00
by fair value through profit or loss
Total 82800000.00 82800000.00
13. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
□ Applicable □ Not applicable
Unit: RMB
Construction in
Item Houses and buildings Land use rights Total
progress
I. Original carrying value
1. Beginning balance 33708658.12 33708658.12
2. Increased amount for the
Current Period
(1) Outsourcing
(2) Transfer from
inventory/fixed
assets/construction in progress
(3) Business
combination increase
3. Decreased amount for the
Current Period
(1) Disposal
(2) Other transfer
4. Ending balance 33708658.12 33708658.12
II. Accumulative depreciation
and accumulative amortization
1. Beginning balance 15033124.49 15033124.49
2. Increased amount for the
451321.15451321.15
Current Period
(1) Withdrawal or
451321.15451321.15
amortization
3. Decreased amount for the
Current Period
(1) Disposal
(2) Other transfer
61Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
4. Ending balance 15484445.64 15484445.64
III. Impairment provisions
1. Beginning balance
2. Increased amount for the
Current Period
(1) Withdrawal
3. Decreased amount for the
Current Period
(1) Disposal
(2) Other transfer
4. Ending balance
IV. Carrying value
1. Ending carrying value 18224212.48 18224212.48
2. Beginning carrying value 18675533.63 18675533.63
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□ Applicable □ Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.□ Applicable □ Not applicable
(2) Investment Property Adopting the Fair Value Measurement Mode
□ Applicable □ Not applicable
14. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 5814725044.82 6053755987.08
Total 5814725044.82 6053755987.08
(1) List of Fixed Assets
Unit: RMB
Electronic
Housing and Machinery Transportation
Item equipment and Total
building equipment vehicle
others
I. Original
carrying value:
1. Beginning
4153405489.187999497701.2657627023.34146359617.5412356889831.32
balance
2. Increased
amount for the 4080478.24 24371882.83 1646309.14 1380548.69 31479218.90
Current Period
(1)
24371882.831646309.141380548.6927398740.66
Purchase
62Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
(2)
Transfer from
4080478.244080478.24
construction in
progress
(3)
Business
combination
increase
3. Decreased
amount for the 8202476.87 71941811.89 386677.89 164728.10 80695694.75
Current Period
(1)
2013535.9266387431.9112362.74134194.0468547524.61
Disposal or scrap
(2) Transfer from
construction in 4246715.11 4246715.11
progress
(3) Other decrease 1942225.84 5554379.98 374315.15 30534.06 7901455.03
4. Ending
4149283490.557951927772.2058886654.59147575438.1312307673355.47
balance
II. Accumulative
depreciation
1. Beginning
1451849601.154617189627.3843584449.86121401888.546234025566.93
balance
2. Increased
amount for the 67974901.40 169445964.70 1703497.50 3496951.59 242621315.19
Current Period
(1)
67974901.40169445964.701703497.503496951.59242621315.19
Withdrawal
3. Decreased
amount for the 1698159.75 52094740.26 25910.26 202355.23 54021165.50
Current Period
(1)
42038.8651275696.461996.5988402.1651408134.07
Disposal or scrap
(2) Transfer from
construction in 1101865.17 1101865.17
progress
(3) Other decrease 554255.72 819043.80 23913.67 113953.07 1511166.26
4. Ending
1518126342.804734540851.8245262037.10124696484.906422625716.62
balance
III. Impairment
provisions
1. Beginning
25815444.4843157303.245671.30129858.2969108277.31
balance
2. Increased
amount for the 4509218.16 4509218.16
Current Period
(1)
4509218.164509218.16
Withdrawal
3. Decreased
amount for the 3294401.44 500.00 3294901.44
Current Period
63Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
(1)
3294401.44500.003294901.44
Disposal or scrap
4. Ending
25815444.4844372119.965671.30129358.2970322594.03
balance
IV. Carrying value
1. Ending
2605341703.273173014800.4213618946.1922749594.945814725044.82
carrying value
2. Beginning
2675740443.553339150770.6414036902.1824827870.716053755987.08
carrying value
(2) Fixed Assets Leased out by Operation Lease
Unit: RMB
Item Ending carrying value
Houses 4373314.83
(3) Fixed Assets Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
Under the relevant certificate procedures of
LuFeng weaving dye grey yarn acceptance measurement examination by
11106179.64
warehouse the real estate trading center and other
departments
Lu Thai Textile Warehouse 01 02 5857460.42 The same as above
Lulian New Materials Yarn Warehouse 7421417.57 The same as above
To be submitted to the relevant department
Overseas production base factory 1019013437.45
for processing upon completion
(4) Impairment Test of Fixed Assets
□ Applicable □ Not applicable
15. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 111498885.45 77047650.62
Engineering materials 22785304.89 17979058.75
Total 134284190.34 95026709.37
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Provision Provision
Carrying amount for Carrying value Carrying amount for Carrying value
impairmen impairme
64Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
t losses nt losses
Production line
project of high-
29531376.9529531376.9523298916.4423298916.44
grade fabrics (Phase
I)
Reform project of
Xinsheng Thermal 2861483.18 2861483.18 1824455.78 1824455.78
Power
Thermoelectric
8899559.628899559.62
cogeneration project
Other sporadic
70206465.7070206465.7051924278.4051924278.40
projects
Total 111498885.45 111498885.45 77047650.62 77047650.62
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Of
Propor
Amou which:
Other tion of Capital
nt of Accum Amou
Increas decrea accum ization
transfe ulated nt of
ed sed ulated rate of
Beginn r into amoun interes
amoun amoun Ending invest Project interes
Project ing fixed t of t Source
Budget t of the t for balanc ment progre ts for
name balanc assets interes capital of fund
Curren the e in ss the
e in the t ization
t Curren constr Curren
Curren capital in the
Period t uctions t
t ization Curren
Period to Period
Period t
budget
Period
Produc
tion
line Fund
project raising
46480232982953111598
of 6442 20988 109.48 99.00 and
0000.916.4376.9184.1
high- 347.65 7.14 % % self-
00456
grade financi
fabrics ng
(Phase
I)
Refor
m
project
of
46001824134831130286162.2162.21
Xinshe Others
000.00455.78336.929.52483.18%%
ng
Therm
al
Power
Therm
oelectr
25000
ic 8899 8899
0000. 3.56% 3.56% Others
cogene 559.62 559.62
00
ration
project
Other 51924 22487 4080 12524 70206 Others
65Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
sporad 278.4 909.2 478.24 3.70 465.7
ic 0 4 0
project
s
7194077047391781114911598
408064644
Total 0000. 650.6 153.4 8885. 184.1
478.240.36
0023456
(3) Impairment Test of Construction in Progress
□ Applicable □ Not applicable
(4) Engineering Materials
Unit: RMB
Ending balance Beginning balance
Provision Provision
Item Carrying for for
Carrying value Carrying amount Carrying value
amount impairment impairment
losses losses
Equipment to
22785304.8922785304.8917979058.7517979058.75
be installed
Total 22785304.89 22785304.89 17979058.75 17979058.75
16. Right-of-use Assets
(1) List of Right-of-use Assets
Unit: RMB
Item Houses and buildings Land use rights Total
I. Original carrying value
1. Beginning balance 77622142.84 466180291.02 543802433.86
2. Increased amount for the Current Period 3351405.97 0.00 3351405.97
(1) Rent 3351405.97 0.00 3351405.97
3. Decreased amount for the Current Period 1661284.21 2016005.11 3677289.32
(1) Maturity 47085.76 47085.76
(2) Other decrease 1661284.21 1968919.35 3630203.56
4. Ending balance 79312264.60 464164285.91 543476550.51
II. Accumulative depreciation
1. Beginning balance 25569781.22 47993724.45 73563505.67
2. Increased amount for the Current Period 5492240.52 7890303.06 13382543.58
(1) Withdrawal 5492240.52 7890303.06 13382543.58
3. Decreased amount for the Current Period 310814.39 178161.48 488975.87
(1) Disposal
(2) Maturity 47085.76 47085.76
66Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
(3) Other decrease 310814.39 131075.72 441890.11
4. Ending balance 30751207.35 55705866.03 86457073.38
III. Impairment provisions
1. Beginning balance
2. Increased amount for the Current Period
(1) Withdrawal
3. Decreased amount for the Current Period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying value 48561057.25 408458419.88 457019477.13
2. Beginning carrying value 52052361.62 418186566.57 470238928.19
(2) Impairment Test of Right-of-use Assets
□ Applicable □ Not applicable
17. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Non-patent Software use Trademark
Item Land use rights Patent right Total
technologies rights right
I. Original
carrying value
1. Beginning
470338494.00409550.002264253.12283018.87473295315.99
balance
2. Increased
amount for the
Current Period
(1) Purchase
(2) Internal R&D
(3) Business
combination
increase
3. Decreased
amount for the 221897.09 221897.09
Current Period
(1) Disposal 221238.94 221238.94
(2) Other
658.15658.15
decrease
4. Ending
470338494.00409550.002042356.03283018.87473073418.90
balance
II. Accumulated
amortization
67Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
1. Beginning
138514719.12153581.401235686.146581.83139910568.49
balance
2. Increased
amount for the 5048199.62 20477.52 385527.73 39490.98 5493695.85
Current Period
(1) Withdrawal 5048199.62 20477.52 385527.73 39490.98 5493695.85
3. Decreased
amount for the 221606.43 221606.43
Current Period
(1) Disposal 221238.94 221238.94
(2) Other
367.49367.49
decrease
4. Ending
143562918.74174058.921399607.4446072.81145182657.91
balance
III. Impairment
provisions
1. Beginning
balance
2. Increased
amount for the
Current Period
(1) Withdrawal
3. Decreased
amount for the
Current Period
(1) Disposal
4. Ending
balance
IV. Carrying
value
1. Ending
326775575.26235491.08642748.59236946.06327890760.99
carrying value
2. Beginning
331823774.88255968.601028566.98276437.04333384747.50
carrying value
The proportion of intangible assets formed from the internal R&D of the Company at the period-end to the ending balance of
intangible assets was 0.00%.
(2) Impairment Test of Intangible Assets
□ Applicable □ Not applicable
18. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Name of the invested Increased amount of the Decreased amount for the
Beginning
units or events Current Period Current Period Ending balance
balance
generating goodwill Formed by Disposal
68Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
business
combination
Xinsheng Thermal
20563803.2920563803.29
Power
Total 20563803.29 20563803.29
19. Long-term Deferred Expenses
Unit: RMB
Increased amount Amortization
Other decreased
Item Beginning balance of the Current amount of the Ending balance
amount
Period Current Period
Decoration fee 5558870.87 2100425.27 3458445.60
Technical service
8844.20110211.7927212.8491843.15
charges
Other prepaid
66845.2066845.20
expense
Total 5634560.27 110211.79 2194483.31 3550288.75
20. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Provision for
255180473.5240882231.42252197942.7741534310.54
impairment of assets
Internal unrealized
92861284.2310317796.55105336586.0613724860.21
profit
Deductible losses 46878524.12 7031778.62 46878524.12 7031778.62
Payroll payable 73682968.78 11052700.68 73682968.78 11052700.68
Deferred income 142118383.17 21945520.20 145143951.32 22467375.60
Contract liabilities 72853803.20 18213450.80 78698329.68 19615211.56
The changes of
receivables financing 120350.60 18052.59 50005.02 7500.75
in fair value
Lease liabilities 90620990.83 13576799.37 99332484.45 14899872.67
Convertible bonds 72707821.07 10906173.16 72707821.06 10906173.16
Associated enterprises 29225591.47 4383838.72 30636716.16 4595507.42
Fund losses 17968191.53 2695228.73
Total 876250190.99 138328342.11 922633520.95 148530519.94
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
69Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Depreciation of fixed
616696613.1096995768.89606505309.1795362712.06
assets
Changes in fair value
of held-for-trading 43855675.00 6578351.25 122951766.13 18442764.92
financial assets
Changes in the fair
value of other non- 13517400.00 2027610.00 13517400.00 2027610.00
current financial assets
Associated enterprises 12983349.53 1947502.43 13000764.22 1950114.63
Right-of-use assets 82701721.35 12405258.20 91572241.18 13735836.18
Fund profit 4557979.97 683697.00
Total 774312738.95 120638187.77 847547480.70 131519037.79
(3) Deferred Income Tax Assets or Liabilities Had Been Off-set Listed in Net Amount
Unit: RMB
Beginning off-set
Ending off-set amount Ending balance of Beginning balance of
amount of deferred
Item of deferred income tax deferred income tax deferred income tax
income tax assets and
assets and liabilities assets and liabilities assets and liabilities
liabilities
Deferred income tax
138328342.11148530519.94
assets
Deferred income tax
120638187.77131519037.79
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary differences 45730872.48 42605021.03
Deductible losses 268375550.32 315591935.20
Total 314106422.80 358196956.23
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets Will Due in the Following Years
Unit: RMB
Year Ending amount Beginning amount Note
Y2025 299.83
Y2026 71029659.21
Y2027 96904257.37 96904257.37
Y2028 87257787.10 87257787.10
Y2029 60399931.69 60399931.69
Y2030 23813574.16
Total 268375550.32 315591935.20
21. Other Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
70Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Provision Provision
for for
Carrying amount Carrying value Carrying amount Carrying value
impairme impairme
nt losses nt losses
Prepayment for
7293481.707293481.70797518.51797518.51
equipment
Prepayment for
25326606.1625326606.1625432036.3925432036.39
land transfer fee
Term deposits
349050116.88349050116.88525000000.00525000000.00
over 1 year
Interest
receivable from
10916368.9510916368.9518724767.8018724767.80
term deposits
over 1 year
Total 392586573.69 392586573.69 569954322.70 569954322.70
22. Assets with Restricted Ownership or Right to Use
Unit: RMB
Period-end Period-beginning
Item Carrying Carrying Type of Status of Carrying Carrying Type of Status of
amount value restriction restriction amount value restriction restriction
Endorsed Endorsed
or or
discounted discounted
Notes 19797413. 19797413. 34463775. 34463775.but not yet but not yet
receivable 77 77 21 21
due for due for
derecogniz derecogniz
ation ation
Other Deposit for Deposit for
3852177.93852177.949999919.49999919.
current recognizan recognizan
889797
assets ce ce
23649591.23649591.84463695.84463695.
Total
75751818
23. Short-term Loans
(1) Category of Short-term Loans
Unit: RMB
Item Ending balance Beginning balance
Borrowings secured by guarantee 120393839.05 91941851.96
Credit loan 649134450.17 757744972.37
Total 769528289.22 849686824.33
Notes of the category for short-term loans:
The short-term loans include interest payable of RMB617114.63.
24. Held-for-trading Financial Liabilities
Unit: RMB
71Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Item Ending balance Beginning balance
Held-for-trading financial liabilities 836220.67 15858713.22
Of which:
Derivative financial liabilities 836220.67 15858713.22
Of which:
Total 836220.67 15858713.22
25. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Payment for goods 125963803.08 174951225.51
Engineering equipment 29049898.41 58703628.27
Others 19234857.28 38424237.73
Total 174248558.77 272079091.51
(2) Significant Accounts Payable Aging over One Year or Overdue
Other notes
No significant accounts payable over one year at the period-end.
26. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 75441113.64 441113.64
Other payables 19703690.74 16996685.96
Total 95144804.38 17437799.60
(1) Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Dividends payable to individual
441113.64441113.64
shareholders
Dividends payable to non-controlling
75000000.00
interests
Total 75441113.64 441113.64
Other notes: Including significant dividends payable unpaid for over one year the unpaid reason shall be disclosed:
Item Ending Beginningbalance balance Reason
Dividends payable to individual 441113.64 441113.64 Cash dividend of previous year not received byshareholders individual shareholders
Total 441113.64 441113.64
72Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
(2) Other Payables
1) Other payables listed by nature
Unit: RMB
Item Ending balance Beginning balance
Deposits and cash deposits etc. 6265774.01 5412393.10
Collecting payment on behalf of others 5303655.52 2071915.32
Others 8134261.21 9512377.54
Total 19703690.74 16996685.96
27. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
Advance from sales 162764875.12 200833613.26
Less: Contract liability recorded in other
-5210873.34-9282609.47
current liabilities
Total 157554001.78 191551003.79
28. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Decreased amount
Increased amount of
Item Beginning balance for the Current Ending balance
the Current Period
Period
I. Short-term salary 301211370.26 696616377.81 762664625.72 235163122.35
II. Post-employment benefit-
15991.6386546234.6286441810.90120415.35
defined contribution plans
III. Termination benefits 420365.94 420365.94 0.00
Total 301227361.89 783582978.37 849526802.56 235283537.70
(2) List of Short-term Salary
Unit: RMB
Decreased amount
Increased amount of
Item Beginning balance for the Current Ending balance
the Current Period
Period
1. Salary bonus allowance
224822772.16621501364.71691619168.27154704968.60
subsidy
2. Employee welfare 2.80 19626999.41 19441145.68 185856.53
3. Social insurance 33294.34 38537429.38 38510632.30 60091.42
Of which: Medical insurance
31414.9135527503.0435513050.2145867.74
premiums
Work-related injury
1104.083005437.952993039.1313502.90
insurance premiums
73Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Maternity insurance 775.35 4488.39 4542.96 720.78
4. Housing fund 6937215.90 6937215.90 0.00
5. Labor-union expenditure and
76355300.9610013368.416156463.5780212205.80
employee education budget
Total 301211370.26 696616377.81 762664625.72 235163122.35
(3) List of Defined Contribution Plans
Unit: RMB
Increased amount of Decreased amount for
Item Beginning balance Ending balance
the Current Period the Current Period
1. Basic pension
15507.0482316794.7182217851.44114450.31
insurance
2. Unemployment
484.594229439.914223959.465965.04
insurance premiums
Total 15991.63 86546234.62 86441810.90 120415.35
Other notes:
The Company in line with the requirement participates in endowment insurance unemployment insurance plans and so on.Under these plans the Company makes monthly contributions to these plans at 16% and 0.7% of the social security contribution
base respectively. No further payment obligations will be incurred by the Company beyond the above monthly contribution fees.The relevant expense occurred was recorded into current profits and losses or related asset costs.
29. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 1551256.26 13958538.83
Enterprise income tax 31721166.99 27102242.22
Personal income tax 507660.95 1581994.81
Urban maintenance and construction tax 1082297.61 3433797.45
Stamp duty 541625.07 826522.82
Real estate tax 5493756.47 5239688.51
Land use tax 2561319.97 2097384.98
Educational fee 513763.69 1551805.29
Local educational surcharge 342509.13 1039303.54
Tax on natural resources 116670.60 160264.60
Environmental protection tax 168803.97 270404.96
Total 44600830.71 57261948.01
30. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
74Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Long-term borrowings matured within
12426401.7212676401.72
one year
Current portion of bonds payable 1511268255.48
Lease liabilities matured within one year 16004745.09 15112170.03
Total 1539699402.29 27788571.75
31. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Tax to be charged off 5210873.34 9282609.47
Endorsed undue bill under non-
19797413.7733546850.71
derecognition
Total 25008287.11 42829460.18
32. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Credit loan 420580998.63 408920511.93
Less: Current portion of long-term
-12426401.72-12676401.72
borrowings
Total 408154596.91 396244110.21
Note to the category of long-term borrowings:
Item Ending balance Interest rate range(%) Beginning balance
Interest rate range
(%)
Credit loan 420580998.63 1.95%-2.34% 408920511.93 2.05-2.80
33. Bonds Payable
(1) Bonds Payable
Unit: RMB
Item Ending balance Beginning balance
Convertible bonds 1511268255.48 1509420449.46
Less: Bonds payable due within one year -1511268255.48
Total 1509420449.46
(2) Changes of Bonds Payable (excluding other financial instruments divided as financial liabilities such
as preferred shares and perpetual bonds)
Unit: RMB
Par Coup IssueName Bond Issue Begin Issued Intere Amort Repai
Share Endin Defau
value on date durati amou ning in the st izatio d in s g lt or
75Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
rate on nt balanc Repor accrue n of the conve balanc not
e ting d at premi Curre rted in e
Period par um nt the
value and Period Curre
depre nt
ciatio Period
n
LuTh
ai
-
Conve 1400 April 1400 1509 4178 2519 1511
14733500.
rtible 0000 9 6 0000 4204 2418. 7206. 2682 Not
3905.00
Bond 00.00 2020 00.00 49.46 48 96 55.48
50
(1270
16)
Less:
Bonds
-
payab
1511
le due Not
2682
within
55.48
one
year
-
1400150941782519
14733500.
Total 0000 4204 2418. 7206. 0.00
3905.00
00.0049.464896
50
(3) Notes to the Convertible Corporate Bonds
According to the Approval of the Public Issue of Convertible Corporate Bonds of Lu Thai Textile Co. Ltd. (ZH.J.X.K [2020] No.
299) of the China Securities Regulatory Commission the Company issued 14 million convertible bonds with a par value of
RMB100 each for a total issue amount of RMB1.4 billion with a maturity of 6 years i.e. from April 9 2020 to April 8 2026.The coupon rates of the convertible bonds issued by the Company are 0.3% 0.6% 1% 1.5% 1.8% and 2% in the following order
from the first stage to the sixth stage with interest payable annually. The conversion period shall commence from (and include)
the first trading day on October 15 2020 six months after the date of issue and shall end on (and include) the trading day prior to
the maturity date of the convertible bonds (April 8 2026). Holders may apply for conversion during the conversion period.The initial conversion price of convertible corporate bonds was RMB9.01 per share when it was issued but was adjusted to
RMB8.91 per share since July 9 2020 after the Company implemented the 2019 Distribution of Profit on July 8 2020. After the
Company implemented the restricted stock incentive plan in 2021 the price was adjusted to RMB8.76 per share accordingly since
June 7 2021. Upon the implementation of the 2020 Distribution of Profit by the Company on June 18 2021 it was adjusted to
RMB8.71 per share accordingly again since June 18 2021. Upon the implementation of the 2021 Distribution of Profit by the
Company on June 23 2022 it was adjusted to RMB8.61 per share accordingly again since June 23 2022. The Company
completed the formalities for cancellation of the repurchased shares on May 25 2023 and the conversion price of the convertible
bond was adjusted accordingly to RMB8.73 per share on May 26 2023. Upon the implementation of the 2021 Distribution of
Profit by the Company on June 16 2023 the conversion price of the convertible bond was adjusted to RMB8.63 per share
accordingly on June 16 2023. The Company completed the formalities for cancellation of the repurchased shares on March 1
2024 and the conversion price of the convertible bond was adjusted accordingly to RMB8.87 per share on March 4 2024. Upon
the implementation of the 2023 Profit Distribution Plan by the Company on June 19 2024 the conversion price of the convertible
bond was adjusted to RMB8.74 per share accordingly on June 19 2024. Upon the implementation of the 2024 Interim Profit
Distribution Plan by the Company on November 8 2024 the conversion price of the convertible bond was adjusted to RMB8.64
per share accordingly on November 8 2024. Upon the implementation of the 2024 Q3 Profit Distribution Plan by the Company on
76Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
December 19 2024 the conversion price of the convertible bond was adjusted to RMB8.59 per share accordingly on 1December
19 2024. Upon the implementation of the 2024 Profit Distribution Plan by the Company on June 20 2025 the conversion price of
the convertible bond was adjusted to RMB8.49 per share accordingly on June 20 2025.
34. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease payments 120093248.49 133128147.33
Unrecognized financing costs -23706116.36 -26662656.50
Less: Current portion of lease liabilities -16004745.09 -15112170.03
Total 80382387.04 91353320.80
Other notes
The amount of interest expense on lease liabilities accrued in H1 2025 was RMB2249361.75 which was included in financial
expenses - interest expense.
35. Long-term Payroll Payable
(1) List of Long-term Payroll Payable
Unit: RMB
Item Ending balance Beginning balance
III. Other long-term welfare 58494991.36 58494991.36
Total 58494991.36 58494991.36
36. Deferred Income
Unit: RMB
Increased amount Decreased amount
Item Beginning balance of the Current for the Current Ending balance Source
Period Period
Government grants 145395121.11 640000.00 3674182.34 142360938.77 Government grants
Total 145395121.11 640000.00 3674182.34 142360938.77
37. Share Capital
Unit: RMB
Increase/decrease in the Reporting Period (+/-)
Shares as Shares as
Beginning dividend dividend Ending balance
balance New issues converte converted Others Subtotal
d from from capital
profit reserves
Total shares 817306010.00 412.00 412.00 817306422.00
Other notes
77Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
During the Current Period the Company converted 412 shares of convertible bonds into equity.
38. Other Equity Instruments
(1) Changes of Outstanding Financial Instruments Such as Preferred Shares and Perpetual Bonds at the Period-End
Unit: RMB
Increased amount of Decreased amount for
Outstanding Period-beginning Period-endthe Current Period the Current Period
financial
instruments Numbe Carrying Numb Carrying NumNumber Carrying value Carrying value
r value er value ber
Convertible debt
71383438.11178.4871383259.63
to equity
Total 71383438.11 178.48 71383259.63
39. Capital Reserves
Unit: RMB
Increased amount of Decreased amount for
Item Beginning balance Ending balance
the Current Period the Current Period
Capital premium (premium on
125363080.003374.76125366454.76
stock)
Other capital reserves 53155587.31 224355.04 53379942.35
Total 178518667.31 227729.80 178746397.11
Other notes including a description of the increase or decrease for the Current Period and the reasons for the change:
(1) Recovery of RMB224307.75 in restricted stock proceeds from employees who left under the equity incentive plan.
(2) Fractional dividend of RMB47.29 for the 2024 B-share equity dividend distribution.
(3) Convertible bonds converted into equity during the Current Period increased capital reserve - share capital premium by
RMB3374.76.
40. Other Comprehensive Income
Unit: RMB
Amount for the Current Period
Less: Less:
Recorded Recorded
Amount in other in other
before comprehen comprehen Attributabl
Beginning Attributabl
Item deducting
sive sive Less: e to the Ending
balance income tax income in income in
e minority
Income tax parent balance
for the prior period prior period
shareholder
expense company
Current and and
s after tax
after tax
Period transferred transferred
in profit or in retained
loss in the earnings in
Current the Current
78Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Period Period
II. Other
comprehen
sive
income that
--
may 16692598 15509478
11841747.-10551.8411831196.0.00
subsequentl 5.26 9.13
9713
y be
reclassified
to profit or
loss
Differ
ences
arising
from the
--
translation 16696683 15519543
11771402.11771402.
of foreign 4.99 2.61
3838
currency-
denominate
d financial
statements
The
changes of
accounts
-
receivable -40849.73 -70345.59 -10551.84 -59793.75
100643.48
financing
in fair
value
Total of
other - -
1669259815509478
comprehen 11841747. -10551.84 11831196.
5.269.13
sive 97 13
income
41. Specific Reserve
Unit: RMB
Increased amount of Decreased amount for
Item Beginning balance Ending balance
the Current Period the Current Period
Safety production costs 7971427.33 3761316.98 4210110.35
Total 7971427.33 3761316.98 4210110.35
42. Surplus Reserves
Unit: RMB
Increased amount of Decreased amount for
Item Beginning balance Ending balance
the Current Period the Current Period
Other capital reserves 1268087709.86 1268087709.86
Statutory surplus
3341572.583341572.58
reserves
Total 1271429282.44 1271429282.44
79Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
43. Retained Earnings
Unit: RMB
Item Reporting period Same period of last year
Beginning balance of retained earnings
6933165006.166762457543.07
before adjustments
Beginning balance of retained earnings after
6933165006.166762457543.07
adjustments
Add: Net profit attributable to owners of the
360215726.72169559969.54
parent company
Dividends of common shares payable 81730601.00 106249766.48
Ending retained earnings 7211650131.88 6825767746.13
List of adjustment of beginning retained earnings:
1) RMB0.00 beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting
Standards for Business Enterprises and relevant new regulations.
2) RMB0.00 beginning retained earnings was affected by changes in accounting policies.
3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors.
4) RMB0.00 beginning retained earnings was affected by changes in combination scope arising from same control.
5) RMB0.00 beginning retained earnings was affected totally by other adjustments.
44. Operating Revenue and Cost of Sales
Unit: RMB
Amount for the Current Period H1 2024
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 2761593924.22 2114102945.55 2763053072.61 2078775369.49
Other operations 65516215.48 54371950.71 67435613.00 53218122.64
Total 2827110139.70 2168474896.26 2830488685.61 2131993492.13
Information about performance obligations: None.Information in relation to the transaction price apportioned to the residual contract performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet
was RMB0.00 at the period-end among which RMB0.00 was expected to be recognized in XXX RMB0.00 was expected to be
recognized in XXX and RMB0.00 was expected to be recognized in XXX.
45. Taxes and Surcharges
Unit: RMB
Item Amount for the Current Period H1 2024
Urban maintenance and construction tax 7709315.81 6289033.04
Educational fee 3352777.94 2739134.65
Tax on natural resources 225561.60 501124.97
Real estate tax 11082230.94 11076205.06
Land use tax 5126449.13 4779301.36
Vehicle and vessel usage tax 41816.34 44897.44
80Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Stamp duty 972888.98 1184777.08
Local education surcharge 2235185.25 1826088.21
Environmental protection tax 493208.95 684824.01
Total 31239434.94 29125385.82
Other notes
Please refer to Note VI. Taxes for details of various taxes and surcharges standards for calculation and payment.
46. Administrative Expense
Unit: RMB
Item Amount for the Current Period H1 2024
Salaries 75165450.56 77230152.38
Depreciation charges 19839428.51 20703778.67
Warehouse funding 18803130.99 18344401.07
Labor-union expenditure 5179275.40 5236534.53
Employee education budget 3555159.13 3801648.86
Amortization of intangible assets 6915254.58 6729562.66
Carriage charges 3940267.62 4767761.97
Others 29549110.60 21991320.55
Total 162947077.39 158805160.69
47. Selling Expense
Unit: RMB
Item Amount for the Current Period H1 2024
Salaries 32470002.40 32065926.42
Marketing expense 16455458.63 16111399.23
Depreciation charges 2417716.59 3344566.64
Business travel expenses 3481536.38 3231195.05
Office operating fee 9776313.03 5569616.81
Others 5097062.74 2964017.13
Total 69698089.77 63286721.28
48. R&D Expense
Unit: RMB
Item Amount for the Current Period H1 2024
Labor cost 56204005.76 63810510.13
Material expense 26511331.44 32672913.93
Depreciation charges 8622551.12 9704000.88
Others 9108731.66 9187172.25
Total 100446619.98 115374597.19
81Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
49. Financial Expenses
Unit: RMB
Item Amount for the Current Period H1 2024
Interest expense 47165800.25 50759962.29
Less: Capitalized interest expense 2028489.95
Interest income 34380042.79 24797577.49
Add: Capitalized interest income
Foreign exchange gains or losses -24018113.45 -22788175.63
Less: Capitalized foreign exchange gains
or losses
Others 3429784.88 3103872.71
Total -7802571.11 4249591.93
50. Other Income
Unit: RMB
Sources Amount for the Current Period H1 2024
Government grants 7517472.62 11197161.62
Transfer of deferred revenue to
3674182.343731952.21
government grants
Total 11191654.96 14929113.83
51. Gain on Changes in Fair Value
Unit: RMB
Sources of gain on changes in fair value Amount for the Current Period H1 2024
Held-for-trading financial assets -68635671.97 -78608823.48
Of which: Gain on changes in fair value
-4942381.29
generated by derivative financial instruments
Held-for-trading financial liabilities 15022492.55 -33931003.79
Total -53613179.42 -112539827.27
52. Investment Income
Unit: RMB
Item Amount for the Current Period H1 2024
Long-term equity investments income
1393710.048619094.53
accounted by equity method
Investment income from disposal of
196029346.86-11908540.91
held-for-trading financial asset
Interest income from debt investments
2120807.51
during the holding period
Total 199543864.41 -3289446.38
53. Credit Impairment Loss
Unit: RMB
82Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Item Amount for the Current Period H1 2024
Loss on uncollectible notes receivable -27500.00 -331749.55
Loss on uncollectible accounts receivable -6459634.43 891673.39
Loss on uncollectible other receivables -80208.77 27530.58
Total -6567343.20 587454.42
54. Asset Impairment Loss
Unit: RMB
Item Amount for the Current Period H1 2024
I. Inventory falling price loss and impairment
-29091375.28-34719445.19
provision for contract performance costs
IV. Fixed assets impairment losses -4509218.17
Total -33600593.45 -34719445.19
55. Asset Disposal Income
Unit: RMB
Source of asset disposal income Amount for the Current Period H1 2024
Impairment loss on fixed assets (“-” for loss) -459023.14 -232868.16
56. Non-operating Income
Unit: RMB
Item Amount for the Current Period H1 2024 Amount recorded in the current non-recurring profit or loss
Claim income 6576005.30 2268221.27 6576005.30
Others 2201405.95 609798.53 2201405.95
Total 8777411.25 2878019.80 8777411.25
57. Non-operating Expense
Unit: RMB
Item Amount for the Current Period H1 2024 Amount recorded in the current non-recurring profit or loss
Donations 643300.48 699531.71 643300.48
Others 2271855.47 1667153.49 2271855.47
Total 2915155.95 2366685.20 2915155.95
58. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Amount for the Current Period H1 2024
Current income tax expense 57174040.37 27358172.92
Deferred income tax expense -668120.35 -8493367.13
83Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Total 56505920.02 18864805.79
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Amount for the Current Period
Profit before tax 424464227.93
Current income tax expense accounted at statutory/applicable tax rate 63669634.19
Influence of applying different tax rates by subsidiaries 10670479.08
Influence of income tax before adjustment -544672.37
Effect of deductible temporary differences or deductible losses on deferred
-3913628.09
income tax assets not recognized in the period
Influence of additional deduction of R&D expenses -13375892.79
Income tax expense 56505920.02
59. Other Comprehensive Income
Refer to Note VII-40 for details.
60. Cash Flow Statement
(1) Cash Related to Operating Activities
Cash generated from other operating activities
Unit: RMB
Item Amount for the Current Period H1 2024
Government grants 2252168.15 3216502.43
Claim income 4895904.55 2414067.12
Recovery of employee borrowings guarantee
13450587.748194771.46
deposit and cash deposit
Collection for employees 1929902.80 346822.55
Others 2790766.39 1069421.84
Total 25319329.63 15241585.40
Cash used in other operating activities
Unit: RMB
Item Amount for the Current Period H1 2024
Business travel charges 18229532.20 18759630.87
Insurance 2041400.38 3018009.97
Audit advisory announcement fee 2383967.23 2118482.59
Decoration fee 1061443.64 6256818.44
Donations 602561.40 689277.94
Payment of employee borrowings petty
11815144.406682473.24
cash and deposit
84Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Agency service fee 21250368.31 7462933.03
Others 45093830.08 27914867.85
Total 102478247.64 72902493.93
(2) Cash Related to Investing Activities
Cash generated from other investing activities
Unit: RMB
Item Amount for the Current Period H1 2024
Interest income 30860778.46 25561955.08
Income from forward foreign exchange 623600.00
Recovery of cash deposit 1457909.57
Recovery of fixed time deposits 255211287.22 25054958.83
Proceeds from financing securities 2394104.88
Total 286072065.68 55092528.36
Cash generated from important investing activities
Unit: RMB
Item Amount for the Current Period H1 2024
Government bond reverse repo 1383943000.00 140961000.00
Structural deposits 2499100000.00 226000000.00
Recovery of proceeds from industrial
13932363.58
investment funds
Total 3896975363.58 366961000.00
Cash used in other investing activities
Unit: RMB
Item Amount for the Current Period H1 2024
Term deposits 52675673.76 184000000.00
Forward settlement exchange loss 3380600.00
Total 52675673.76 187380600.00
Cash used in significant investing activities
Unit: RMB
Item Amount for the Current Period H1 2024
Government bond reverse repo 1534114000.00 90000000.00
Structural deposits 2739100000.00 226000000.00
Wealth management products 150000000.00
Total 4273214000.00 466000000.00
(3) Cash Related to Financing Activities
Cash used in other financing activities
Unit: RMB
85Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Item Amount for the Current Period H1 2024
Repayment of lease liabilities and
9250108.129319173.11
prepaid rent
B shares repurchase 37825078.13
Total 9250108.12 47144251.24
Changes in liabilities arising from financing activities
□ Applicable □ Not applicable
Unit: RMB
Increased amount of the Current Period Decreased amount for the Current Period
Item Beginning balance Ending balance
Cash fluctuations Non-cash fluctuations Cash fluctuations Non-cash fluctuations
Short-term
loans 849686824.33 775615516.62 850485289.27 5288762.46 769528289.22
Long-term
borrowings 408920511.93 20000000.00 123687.56 8463200.86 420580998.63
Bonds
payable 1509420449.46 27048512.98 25197206.96 3500.00 1511268255.48
Lease
liabilities 106465490.83 2917963.88 12996322.58 96387132.13
Total 2874493276.55 795615516.62 30090164.42 897142019.67 5292262.46 2797764675.46
61. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information H1 2025 Same period of last year
1. Reconciliation of net profit to net cash flows generated from
operating activities:
Net profit 367958307.91 174035246.63
Add: Provision for impairment of assets 40167936.65 34131990.77
Depreciation of fixed assets oil-gas assets and productive
243072636.34239784009.94
biological assets
Depreciation of right-of-use assets 13382543.58 12660992.42
Amortization of intangible assets 5493695.85 5350029.52
Amortization of long-term deferred expenses 2194483.31 671332.62
Losses from disposal of fixed assets intangible assets and other
459023.14232868.16
long-lived assets (gains: negative)
Losses from scrap of fixed assets (gains: negative)
Losses from changes in fair value (gains represented by “-”) 53613179.42 112539827.27
Financial expenses (gains: negative) -11232355.99 1145719.22
Investment loss (gains represented by “-”) -199543864.41 3289446.38
Decrease in deferred income tax assets (gains: negative) 10212729.67 -26215.78
Increase in deferred income tax liabilities (“-” means decrease) -10880850.02 -8467151.35
Decrease in inventory (gains: negative) 4325004.41 -27021239.55
Decrease in accounts receivable generated from operating 41054910.16 101833736.62
86Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
activities (gains represented by “-”)
Increase in accounts payable used in operating activities
-296283739.06-198738940.18
(decrease represented by “-”)
Others
Net cash flow from operating activities 263993640.96 451421652.69
2. Significant investing and financing activities without involvement of
cash receipts and payments:
Conversion of debt to capital
Convertible corporate bonds matured within one year
Fixed asset under finance lease
3. Net increase/decrease of cash and cash equivalent:
Ending balance of cash 1470044640.51 1651175499.97
Less: Beginning balance of cash 1371412259.52 1353615305.93
Plus: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents 98632380.99 297560194.04
(2) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 1470044640.51 1371412259.52
Including: Cash on hand 7356389.93 4283695.11
Bank deposits on demand 1462324493.06 1367128564.41
Other monetary capital on demand 363757.52
II. Cash equivalents
III. Ending balance of cash and cash
1470044640.511371412259.52
equivalents
62. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Closing foreign currency Ending balance converted to
Item Exchange rate
balance RMB
Monetary capitals
Of which: USD 177987964.38 7.1586 1274144641.81
EUR 145514.42 8.4024 1222670.36
HKD 1792560.44 0.9120 1634815.12
JPY 11893205.00 0.0496 589902.97
GBP 27.18 9.8300 267.18
VND 222601653123.00 0.0003 61047605.49
87Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
MMK 1953307832.85 0.0034 6658547.69
KHR 698932769.00 0.0018 1247725.92
Accounts receivable
Of which: USD 76324960.22 7.1586 546379860.23
EUR 238184.55 8.4024 2001321.86
HKD
VND 24470942775.00 0.0003 6711057.35
MMK 2672621414.00 0.0034 9110585.05
Other receivables:
Of which: USD 1256614.24 7.1586 8995598.70
EUR 26436.40 8.4024 222129.21
HKD 147149.00 0.9120 134199.89
JPY 1985040.00 0.0496 98457.98
VND 4426992414.00 0.0003 1214084.81
MMK 143538630.00 0.0034 489302.71
Accounts payable:
Of which: USD 7599463.75 7.1586 54401521.20
EUR 27250.00 8.4024 228965.40
JPY 3117200.00 0.0496 154613.12
CHF 4400.00 0.0000 0.00
VND 29726879210.00 0.0003 8152476.72
MMK 136261915.45 0.0034 464497.43
Other payables:
Of which: USD 16552.25 7.1586 118490.94
VND 391343099.00 0.0003 107324.27
MMK 1000000.00 0.0034 3408.86
Short-term loans:
Of which: USD 99674705.04 7.1586 713531343.50
VND 204185120522.92 0.0003 55996945.71
Long-term borrowings
Of which: USD
EUR
HKD
(2) Notes to overseas entities including: For significant oversea entities main operating place recording
currency and selection basis shall be disclosed; if there are changes in recording currency relevant
reasons shall be disclosed.□ Applicable □ Not applicable
88Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
The operating places of the Company’s overseas subsidiaries were Hong Kong Burma America Vietnam Singapore and
Cambodia and the recording currency was HKD for Hong Kong and USD for other overseas companies.
63. Lease
(1) The Company was Lessee
□ Applicable □ Not applicable
Variable lease payments that are not covered in the measurement of the lease liabilities
□ Applicable □ Not applicable
Simplified short-term lease or lease expense for low-value assets
□ Applicable □ Not applicable
Item Amount for the Current Period
Expense relating to short-term leases 182064.45
Low-value lease expenses
Variable lease payments that are not covered in the
measurement of the lease liabilities
Total 182064.45
(2) The Company was Lessor
Operating leases with the Company as lessor
□ Applicable □ Not applicable
Unit: RMB
Of which: Income related to variable
Item Rental income lease payments not included in lease
receipts
Rental income 1775586.40
Total 1775586.40
Finance leases with the Company as lessor
□ Applicable □ Not applicable
Undiscounted lease receipts for each of the next five years
□ Applicable □ Not applicable
Unit: RMB
Undiscounted lease receipts per year
Item
Ending amount Beginning amount
The first year 869241.80 1240588.20
The second year 162441.30 426120.60
The third year 20160.00
Total undiscounted lease receipts after
1031683.101686868.80
five years - -
89Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
(3) Recognition of Gain or Loss on Sales Under Finance Leases with the Company as a Manufacturer or
Distributor
□ Applicable □ Not applicable
VIII Research and Development Expenditure
Unit: RMB
Item Amount for the Current Period H1 2024
Labor cost 56204005.76 63810510.13
Material expense 26511331.44 32672913.93
Depreciation charges 8622551.12 9704000.88
Others 9108731.66 9187172.25
Total 100446619.98 115374597.19
Of which: Expensed research and
100446619.98115374597.19
development expenditure
IX Change of Consolidation Scope
1. Disposal of Subsidiary
Whether there were any transactions or events during the period in which control of the subsidiary was lost
□ Yes □ No
Whether there was a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during
the Current Period
□ Yes □ No
2. Other Reasons for Changes of Consolidation Scope
Notes of other changes in the combination scope (e.g. new subsidiaries liquidation of subsidiaries etc.) and relevant situations:
There were no changes in the consolidation scope of the Company during the Reporting Period.X Equity in Other Entities
1. Equity in Subsidiary
(1) Compositions of the Group
Unit: RMB
Shareholding
Main Regist
Nature of percentage (%) Way of
Name Registered capital operatin ration
business Indirectl gainingg place place Directly
y
Lu Thai (Hong Kong) Textile Wholesale
Hong Hong
Co. Ltd. (hereinafter referred 128771800.00 and retail 100.00% Incorporated
Kong Kong
to as “Lu Thai (HK)”) industry
90Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Shanghai Lu Thai Textile
Wholesale
Garment Co. Ltd. Shangha Shang
20000000.00 and retail 100.00% Incorporated
(hereinafter referred to as i hai
industry
“Shanghai Lu Thai”)
LuFeng Company Limited
Manufacturi
(hereinafter referred to as 706160000.00 Zibo Zibo 75.00% Incorporated
ng industry
“LuFeng Company”)
Zibo Luqun Textile Co. Ltd.Manufacturi
(hereinafter referred to as 168220000.00 Zibo Zibo 100.00% Incorporated
ng industry
“Luqun Textile”)
Zibo Xinsheng Thermal Business
Thermoelect
Power Co. Ltd. (hereinafter combination
162435600.00 Zibo Zibo ric 100.00%referred to as “Xinsheng not under thecogenerationThermal Power”) same control
Shandong Lulian New
Materials Co. Ltd. Manufacturi 156547
900000000.00 Zibo Zibo 75.00% Incorporated
(hereinafter referred to as ng industry 46.93
“Lulian New Materials”)
Shandong Lujia Import &
Export Co. Ltd. (hereinafter Import and
10000000.00 Zibo Zibo 100.00% Incorporatedreferred to as “Lujia Import export trade& Export”)
Beijing Zhishu Management
Consulting Co. Ltd. Beijin Management
2000000.00 Beijing 100.00% Incorporated
(hereinafter referred to as g consulting
“Zhishu Consulting”)
Lu Thai Occupational
Training School Zichuan
District Zibo City 100000.00 Zibo Zibo Skill training 100.00% Incorporated(hereinafter referred to as “LuThai Training”)
Zibo Banyang Villa Hotel
Catering
Co. Ltd. (hereinafter referred 5000000.00 Zibo Zibo 100.00% Incorporated
services
to as “Banyang Villa”)
Hainan Huilin International Modern
Wencha WencHoldings Co. Ltd. (“Huilin 880000000.00 service 100.00% Incorporatedng hangInternational”) industry
Wholesale
textiles and
Singapo Singap
TP Company 398203876.00 leather 100.00% Incorporated
re ore
holding
company
Vanguard Apparel Co. Ltd.Manufacturi
(hereinafter referred to as 62337887.93 Burma Burma 100.00% Incorporated
ng industry
“Vanguard Apparel”)
Lu Thai (USA) Textile Co. Wholesale
Ameri
Ltd. (hereinafter referred to 6139710.00 America and retail 100.00% Incorporated
ca
as “Lu Thai (USA)”) industry
Tianyi Apparel Co. Ltd.Manufacturi
(hereinafter referred to as 10719000.00 Burma Burma 100.00% Incorporated
ng industry
“Tianyi Apparel”)
Yuanhui Dividend No. 2
Private Securities Investment 100.00% Subscribe
Fund (“Yuanhui Fund”)
Basis of controlling significant structural entities incorporated in the scope of combination:
91Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
The structural entity incorporated in the scope of consolidation of the Group is Yuanhui Dividend No. 2 Private Securities
Investment Fund. The Group assesses its share of investment holdings the power it enjoys and variable returns comprehensively
and includes the structural entity that the Company has control power into the consolidation scope.
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding The profit or loss Declaring dividends Equity of non-
Name proportion of non- attributable to the non- distributed to non- controlling interests at
controlling interests controlling interests controlling interests the end of the period
LuFeng Company 15654746.93 7742581.19 75000000.00 315582036.11
(3) The Main Financial Information of Significant Non-wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Curren Non- Curren Non-
Name Non- Total Non- TotalCurren Total t current Curren Total t current
current liabiliti current liabiliti
t assets assets liabiliti liabilit t assets assets liabiliti liabilit
assets es assets es
es y es y
LuFen
11365711617073906949352440041096648231745156225039320661
g
219954225.384175269.121.47390.938635124.173754247.232.07479.
Compa
1.87627.49005452.35196.5467067
ny
Unit: RMB
Amount for the Current Period H1 2024
Total Cash flows Total Cash flows
Name Operating comprehen from Operating comprehen from
Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
-
LuFeng 49336029 28443221. 28381052. 64274869 43872724. 43890298. 13110972
55574848.
Company 3.18 22 29 2.32 61 36 0.07
58
2. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Shareholding percentage (%) Accounting
Name of joint treatment of the
ventures or Main operating Registration Nature of investment to
associated place place business Directly Indirectly joint venture or
enterprises associated
enterprise
Haohong Equity
Ningbo Ningbo 33.33% Equity method
Investment investment
Haoying Equity
Ningbo Ningbo 47.62% Equity method
Investment investment
92Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
(2) Main Financial Information of Significant Associated Enterprises
Unit: RMB
Beginning balance/the same period of last
Ending balance/reporting period
year
Haohong Haoying
Haohong Investment Haoying Investment
Investment Investment
Current assets 59855543.31 193171974.67 97221745.84 193217687.26
Non-current assets
Total assets 59855543.31 193171974.67 97221745.84 193217687.26
Current liabilities 3253866.05 3253866.05
Non-current liability
Total liabilities 3253866.05 3253866.05
Net assets 56601677.26 193171974.67 93967879.79 193217687.26
Equity of non-controlling
interests
Equity attributable to
shareholders of the parent 56601677.26 193171974.67 93967879.79 193217687.26
company
Net assets shares calculated at the
18870148.6191988494.3431325690.5892010262.67
shareholding proportion
Adjusted items
- Goodwill
- Internal unrealized profit
- Others -3247328.29 -3251681.96
Carrying value of investment to
18870148.6188741166.0531325690.5888758580.71
associated enterprises
Fair value of equity investments
in associated enterprises with
publicly quoted prices
Operating revenue
Net profit 4233797.47 -45712.59 -50801107.48 -17117805.92
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income 4233797.47 -45712.59 -50801107.48 -17117805.92
Dividends received from the
associated enterprises in the
Current Period
XI Government Grants
1. Government Grants Recognized at the End of the Reporting Period at the Amount Receivable
□ Applicable □ Not applicable
93Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Reasons for failing to receive government grants in the estimated amount at the estimated point in time
□ Applicable □ Not applicable
2. Liability Items Involving Government Grants
□ Applicable □ Not applicable
3. Government Grants Recognized in Profit or Loss for the Current Period
□ Applicable □ Not applicable
Unit: RMB
Accounting items Amount for the Current Period H1 2024
Other income 11191654.96 14929113.83
Financial expenses 126500.01 84024.92
Total 11318154.97 15013138.75
XII Risks Associated with Financial Instruments
1. Various Types of Risks Arising from Financial Instruments
The Company’s major financial instruments include monetary capital notes receivable accounts receivable receivables financing
other receivables held-for-trading financial assets other non-current financial assets other non-current assets - term deposits over
one year accounts payable other payables short-term loans current portion of non-current liabilities other current liabilities -
endorsed outstanding notes long-term borrowings bonds payable lease liabilities and other equity instruments. Details of various
financial instruments are disclosed in relevant Notes. Risks related to these financial instruments and risk management policies
the Company has adopted to reduce these risks are described as follows. The Company management manages and monitors the
risk exposure to ensure the above risks are controlled in a limited scope.
1. Risk management objectives and policies
The Company has conducted the risk management to achieve an appropriate balance between the risk and the income and to
minimize the adverse influence of financial risks on the Company’s financial performance. According to such risk management
objective the Company has formulated corresponding risk management policy to recognize and analyze possible risks
encountered by the Company set the appropriate acceptable risk level and designed corresponding internal control procedures to
monitor the Company’s risk level. Meanwhile the Company will regularly review these risk management policies and relevant
internal control system so as to cater for the market or respond to any change in the Company’s business operations. Accordingly
the Company’s internal audit department will also regularly or randomly check whether the internal control system is implemented
in conformity with relevant risk management policies.The major risks caused by financial instruments of the Company are credit risk liquidity risk and market risk (including foreign
exchange risk and interest rate risk).The Board of Directors shall be responsible for planning and establishing the risk management framework for the Company
determining the Company’s risk management policies and relevant guidelines and monitoring the implementation of various risk
management measures. However the Company has established corresponding risk management policies to recognize and analyze
possible risks encountered by the Company. Besides various risks are specified in these risk management policies including the
credit risk the liquidity risk and the market risk management etc. On a regular basis the Company will evaluate the specific
marketing environment and various changes in the Company’s business operations so as to determine whether any risk
management policy and system need be updated.
94Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
(1) Credit Risk
Credit risk means that the Company will suffer any financial losses due to the counterparty’s failure in fulfilling the contract
obligations.The Company shall manage the credit risk based on the specific Group Classification and the credit risk mainly arises from bank
deposit notes receivable accounts receivable other receivables and debt investment etc.The Company’s bank deposits are mainly saved in state-owned banks and other large and medium-sized listed banks. The
Company’s bank deposits are expected not to suffer any major credit risks.For notes receivable accounts receivable other accounts receivable and long-term receivables the Company has established
relevant policies to control the credit risk exposure. According to the client’s financial status credit record and other factors
(including the current market condition) the Company will evaluate the client’s credit qualification and set corresponding credit
period. The Company regularly monitors the credit records of customers. For customers with bad credit records the Company
adopted corresponding methods such as written pressing for payment shortening credit period and canceling credit period so as
to ensure the Company’s overall credit risk is controllable.The hugest credit risk exposure borne by the Company is the book value of each financial asset reflected in the balance sheet.In terms of accounts receivable the top 5 customers in accounts receivable were accounted for 24.82% of the total amount of
accounts receivable of the Company (22.16% in 2024). As for other receivables the top 5 of the ending balance according to the
arrears party was accounted for 63.32% of the total amount of other receivables of the Company (69.61% in 2024).Debt investment
The Company generally limits its exposure to credit risk by investing only in securities for which there is an active market (other
than long-term strategic investments) and for which the counterpart has a high credit rating.The Company supervised the changes of credit risk through tracking the published external credit ratings. In order to make sure
whether the credit rating was the latest and whether the credit risk has increased obviously of evaluation report date but not been
reflected in the published external ratings the Company has supplemented through examining the changes of bond yield and the
available news and supervision information.On the balance sheet date the carrying value of investment in debt obligations of the Company are listed as follows according to
report items. (Unit: RMB’0000)
Ending balance Closing balance of lastyear
Held-for-trading financial
assets 62068.16 23087.41
Debt investment due within
one year 15629.74 15417.66
Total 77697.90 38505.07
(2) Liquidity Risk
Liquidity risk refers to the risk of capital shortage encountered by the Company during the cash payment or the settlement of other
financial assets.During the management of liquidity risk the Company shall reserve and monitor corresponding cash and cash equivalent deemed
sufficient by the management so as to meet the Company’s operational requirements and mitigate the impact caused by the cash
flow fluctuation. The Company’s management will monitor the use of bank loans and guarantee the fulfillment of loan agreement.Meanwhile major financial institutions shall promise to provide the Company with sufficient reserve funds in order to satisfy the
short-term and long-term fund demand. The Company shall raise its working capital based on the capital generated from business
operations and bank loans.At the end of the period the analysis of financial liabilities and off-balance sheet guarantee items held by the Company based on
the maturity period of the undiscounted remaining contractual cash flows is as follows:
95Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Ending balance
Item
Within one year Within one to five years Over five years Total
Financial liabilities:
Short-term loans 777348854.17 777348854.17
Accounts payable 174248558.77 174248558.77
Other payables 19703690.74 19703690.74
Long-term
borrowings 20819399.04 412514989.55 433334388.59
Bonds payable 1399841200.00 1399841200.00
Lease liabilities 19353237.59 52861448.08 47878562.82 120093248.49
Total 2411314940.31 465376437.63 47878562.82 2924569940.76
At the end of the previous year the analysis of financial liabilities and off-balance sheet guarantee items held by the Company
based on the maturity period of the undiscounted remaining contractual cash flows is as follows:
Closing balance of last year
Item
Within one year Within one to five years Over five years Total
Financial liabilities:
Short-term loans 855549333.86 855549333.86
Accounts payable 272079091.51 272079091.51
Other payables 17437799.60 17437799.60
Long-term
borrowings 21948346.33 405344416.41 427292762.74
Bonds payable 1399844700.00 1399844700.00
Lease liabilities 20183287.07 58411429.64 54533430.61 133128147.33
Total 1187197858.37 1863600546.05 54533430.61 3105331835.04
The amounts of financial liabilities disclosed in the table above represent undiscounted contractual cash flows and may differ from
the carrying amounts in the balance sheet.
(3) Market Risk
The financial instrument’s market risk refers to the fluctuation risk of fair value of financial instrument or future cash flow caused
by the changes of market price including the interest rate risk and the exchange rate risk.Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments arising from changes
in market interest rates. The interest rate can derive from the recognized interest-bearing financial instruments and unrecognized
financial instruments (including certain loan commitment).The Company’s interest rate risk mainly arises from the long-term interest-bearing debt such as the bank loan and bonds payable.Financial liabilities based on the floating interest rate will cause the cash flow interest rate risk to the Company and financial
liabilities based on the fixed interest rate the fair value interest rate risk.However the Company has paid close attention the impact of interest rate fluctuations on the Company’s interest rate risk. At
present the Company has not taken any interest rate hedging measures. The rise of interest rate will increase the cost of newly-
added interest-bearing debts and the interest cost of the Company’s unsettled interest-bearing debts based on the floating interest
rate and cause major adverse influence on the Company’s financial performance. The management will timely make
corresponding adjustment according to the latest market situation and corresponding interest rate swap will be arranged to reduce
96Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
the interest rate risk.The interest-bearing financial instruments held by the Company are as follows (Unit: RMB’0000):
Item Amount of Current Amount of the PreviousPeriod Period
Fixed-interest financial instruments
Including: Short-term loans 76952.83 70968.68
Long-term borrowings matured within one
year 425.00
Long-term borrowings
Bonds payable 151126.83 150942.04
Total 228079.65 222335.73
Floating-interest financial instruments
Financial assets 62068.16 38505.07
Including: Held-for-trading financial assets 62068.16 23087.41
Debt investment due within one year 15629.74 15417.66
Financial liabilities 40815.46 40467.05
Including: Short-term loans
Long-term borrowings matured within one
year 1242.64 842.64
Long-term borrowings 39572.82 39624.41
Total 102883.62 78972.12
On June 30 2025 if the lending rate calculated at floating interest rate up or down 100 basis points with other variables unchanged
the net profit and shareholders’ equity will be decreased or increased about RMB3469300 (compared to RMB3439700 as at the
end of last year).For financial instruments held at the balance sheet date that expose the Company to fair value interest rate risk the impact on net
profit and shareholders’ equity in the sensitivity analysis above is the impact of re-measuring the above financial instruments at the
new interest rate assuming that there is a change in interest rates at the balance sheet date. For floating rate non-derivative
instruments held at the balance sheet date that expose the Company to cash flow interest rate risk the impact on net profit and
shareholders’ equity in the above sensitivity analysis is the impact of changes in the above interest rates on interest expense or
income estimated on an annualized basis. The previous year’s analysis was based on the same assumptions and methodology.Foreign exchange risk
Foreign exchange risk is referred to the fluctuation risk of fair value of financial instruments or future cash flows resulted from the
change of foreign exchange rate. The foreign exchange rate was originated from the financial instruments denominated in foreign
currencies other than the recording currency.The Company’s recognized foreign currency assets and liabilities as well as future foreign currency transactions (the denomination
currencies of foreign currency assets and liabilities and foreign currency transactions are mainly USD VND EUR and HKD) are
exposed to foreign exchange risk.On June 30 2025 the amount of foreign currency financial assets and foreign currency financial liabilities converted to renminbi
is as follows (Unit: RMB’0000):
Foreign currency liabilities Foreign currency assets
Item
Ending balance Closing balance of last year Ending balance Closing balance of last year
97Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
USD 76805.14 73605.67 182952.01 178017.80
EUR 22.90 18.79 344.61 412.75
JPY 15.46 14.91 68.84 14.43
HKD 176.90 100.84
GBP 0.03 0.02
VND 6425.67 7442.45 6897.27 6964.15
MMK 46.79 224.19 1625.84 710.25
KHR 124.77 96.76
Total 83315.96 81306.01 192190.27 186317.00
The Company has paid close attention the impact of exchange rate fluctuations on the Company’s exchange rate risk. The
Company has signed contracts of futures exchange for the purpose of the aversion of foreign exchange risk. As at the end of each
reporting period for the Company’s monetary capitals notes receivable accounts payable other payables short-term loans and
long-term loans denominated in foreign currencies assuming a 10% appreciation or depreciation of RMB against foreign
currencies while other factors remain unchanged the impact of possible reasonable changes in the Company’s foreign currency
exchange rate against RMB on the Company’s profit and loss for the Current Period is as follows (Unit: RMB’0000):
This year Last year
Exchange rate
fluctuations
Impact on after-tax profit Impact on shareholders’ equity Impact on after-tax profit Impact on shareholders’equity
10% appreciation
against RMB -8467.99 -8467.99 -5706.30 -5706.30
10% depreciation
against RMB 8467.99 8467.99 5706.30 5706.30
2. Capital Management
The objectives of capital management policies of the Company are to ensure the continuous operation of the Company so as to
provide return to shareholders and benefit other stakeholders as well as to reduce capital cost by maintaining the optimal capital
structure.In order to maintain or adjust capital structure the Company might adjust financing method and the dividends paid to shareholders
return capital to shareholders issue new shares and other equity instruments or sell assets to reduce debts.The Company supervised the capital structure based on the asset-liability ratio (namely total liabilities divide total assets). On June
30 2025 the asset-liability ratio was 27.76% of the Company (29.49% on December 31 2024).
XIII Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Closing fair value
Item Fair value Fair value Fair value
measurement items at measurement items at measurement items at Total
level 1 level 2 level 3
I. Consistent fair value
--------
measurement
i. Held-for-trading
187230880.00862120278.381049351158.38
financial assets
98Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
1. Financial assets at
fair value through 187230880.00 862120278.38 1049351158.38
profit or loss
(1) Investment in debt
150171000.00470510575.78620681575.78
instruments
(2) Equity investments 37059880.00 391609702.60 428669582.60
ii. Accounts receivable
37499801.2037499801.20
financing
iii. Other non-current
82800000.0082800000.00
financial assets
The total amount of
assets consistently 187230880.00 862120278.38 120299801.20 1169650959.58
measured at fair value
vi. Held-for-trading
836220.67836220.67
financial liabilities
Derivative financial
836220.67836220.67
liabilities
The total amount of
liabilities consistently 836220.67 836220.67
measured at fair value
II. Inconsistent fair
--------
value measurement
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at
Level 1
Quoted prices in active markets for identical assets or liabilities (unadjusted).
3. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 2
The Company determines the fair value of structural deposits and wealth management products based on the prospective earning
rate as agreed in the contract.The Company determines the fair value of fund products based on the changes in net value published by the private equity funds.The Company determines the fair value of forward options based on bank forward foreign exchange quotations at the end of the
period.
4. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 3
For the unlisted equity investment the Company adopts the comparable listed company comparison method and the non-
observable input value of the comparable listed company comparison method includes the liquidity discount.The investment into Shandong Hongqiao Thermoelectric Co. Ltd. made by Luqun Textile (the Company’s subsidiary) is expected
to be held in the long run for obtaining the discount on power purchase. As no revenue distribution right is vested in the
investment the invested unit’s operating profit and loss are not shared or borne and the equity transfer is not proposed the
Company regards it as the financial asset which shall be measured based on the fair value through profit or loss and the
investment cost is deemed as the fair value of the financial asset.
99Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
For accounts receivables financing at fair value and the changes included in other comprehensive income its fair value shall be
determined by the discount cash flow method.
5. Fair Value of Financial Assets and Financial Liabilities Not Measured at Fair Value
The financial assets and financial liabilities measured at amortized cost mainly include monetary capitals notes receivable
accounts receivable other receivables short-term loans notes payable accounts payables other payables current portion of long-
term borrowings long-term borrowings and bonds payable.XIV Related Party and Related-party Transactions
1. Information Related to the Company as the Parent Company
Proportion of voting
Proportion of share
rights owned by the
Registration held by the parent
Name Nature of business Registered capital parent company
place company against the
against the
Company (%)
Company (%)
Textile chemistry and
Lucheng Textile Zibo RMB63260000 17.17% 17.17%
investment
Notes: Information on the parent company
The final controllers of the Company are Mr. Liu Zibin and Mr. Liu Deming.
2. Subsidiaries of the Company
Refer to Note X-1.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note X-2.
4. Information on Other Related Parties
Relationship with the
Name
Company
Zibo Limin Purified Water Co. Ltd. (hereinafter referred to as “Limin Purified Water”) Same parent company
Zibo Luqun Land Co. Ltd. (hereinafter referred to as “Luqun Land”) Same parent company
Zibo Lurui Fine Chemical Co. Ltd. (hereinafter referred to as “Lurui Chemical”) Same parent company
Zibo Lujia Property Management Co. Ltd. (hereinafter referred to as “Lujia Property”) Same parent companyHong Kong Tung Hoi International Company Limited (hereinafter referred to as “Tung HoiSame parent companyInternational”)
Zibo Chengshun Hosiery Co. Ltd. (hereinafter referred to as “Chengshun Hosiery”) Same parent companyZibo Chengshun Economic and Trade Co. Ltd. (hereinafter referred to as “ChengshunSame parent companyEconomic and Trade”)Chengshun Petrochemical (Zhejiang Zhoushan) Co. Ltd. (hereinafter referred to as “ChengshunSame parent companyPetrochemical”)Zibo Lucheng Petrochemical Sales Co. Ltd. (hereinafter referred to as “LuchengSame parent companyPetrochemical”)
100Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Shanghai Hengjiu Textile New Materials Co. Ltd. (hereinafter referred to as “Hengjiu Textile”) Same parent company
Subsidiary of the parent
Shandong Xirui New Materials Co. Ltd. (hereinafter referred to as the “Xirui New Material”)
company’s subsidiaryZibo Lumei Economic and Trade Co. Ltd. (hereinafter referred to as “Lumei Economic andSame parent companyTrade”)Zibo Hesheng Chemical Trading Co. Ltd. (hereinafter referred to as “Hesheng Chemical Subsidiary of the parentTrading”) company’s subsidiaryZhiFeng (Vietnam) International Trading Co. Ltd. (hereinafter referred to as “ZhiFeng Subsidiary of the parentInternational”) company’s subsidiary
Liu Zibin Xu Zhinan Xu Jianlv Zheng Huisheng Liu Deming Zhang Zhanqi Zhang Keming
Du Lixin Zhu Beina Yu Mingtao Quan Yuhua Wei Jian Shang Chenggang Yu Shouzheng Key management personnel
Liu Zilong Dong Shibing Guo Heng Lv Wenquan Xu Feng Zheng Weiyin
5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
Whether
Amount for the Current The approval trade exceed
Related party Content H1 2024
Period credit trade credit
or not
Limin Purified Recycled water sewage
11966867.49 15290000.00 Not 12481784.67
Water treatment
Lurui
Auxiliaries 36588668.84 41950000.00 Not 32529628.10
Chemical
Tung Hoi
Auxiliaries 21197156.06 24000000.00 Not 18168676.77
International
Paper core hosiery
Chengshun
purchase of materials
Hosiery and 3039439.51 5408333.33 Not 4153331.37
such as hose electrical
Luqun Land
etc.Chengshun
Economic and Supermarket retail 903874.20 1880000.00 Not 339217.59
Trade
Lucheng
Petrochemical Oil 1721161.37 1913666.67 Not 2080671.55
Petrochemical
Chengshun
Oil natural gas 21651580.57 30250000.00 Not 23800279.70
Petrochemical
Information of sales of goods and provision of labor service
Unit: RMB
Amount for the
Related party Content H1 2024
Current Period
Chengshun
Yarn yarn-dyed fabric etc. 170156.08 246017.94
Hosiery
Chengshun
Materials electricity running water heating steam 108565.44 122866.93
Hosiery
Chengshun
Materials electricity running water yarn garments food
Economic and 104193.73 246399.80
heating steam
Trade
101Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Lucheng
Petrochemical Materials electricity 7843.35 6695.10
Petrochemical
Limin Purified
Materials electricity garments meal service in classes foods 2936176.07 3983115.40
Water
Lurui Chemical Garments fabrics foods 10394.59 157715.38
Lujia Property Materials garments 22153.93 18563.66
Xirui New
Catering and accommodation service 5107.54 13441.51
Material
Xirui New
Materials garments etc. 27351.24 16635.31
Material
(2) Information on Related-party Lease
The Company was lessor:
Unit: RMB
The lease income confirmed The lease income confirmed
Name of lessee Category of leased assets
in the Current Period in the same period of last year
Chengshun Economic and
Rent of houses and buildings 50636.00 40950.67
Trade
Chengshun Hosiery Rent of houses and buildings 8400.00 8400.00
The Company was lessee:
Unit: RMB
Rental expense Variable lease
of simplified payments that are
Interest expense on
short-term leases not covered in the Added right-of-use
Rent payable lease liabilities
and low-value measurement of assets
Category borne
Name of asset leases (if the lease liabilities
of leased
lessor applicable) (if applicable)
assets
Amoun Amoun Amoun Amoun Amoun
t for the H1 t for the H1 t for the H1 t for the H1 t for the H1
Current 2024 Current 2024 Current 2024 Current 2024 Current 2024
Period Period Period Period Period
Lucheng Rent of 18074 18074 440389 502383
Textile land 28.60 28.60 .20 .97
Rent of
Lucheng 116571 116571 47489. 50622.gas
Textile .42 .42 98 80
station
Lucheng Rent of 55111 55111 931811 10125
Textile buildings 14.30 14.30 .76 10.71
Rent of
Luqun 985714 985714 528358 549099
land and
Land .26 .26 .35 .27
buildings
6. Accounts Receivable and Payable of Related Party
(1) Accounts Payable
Unit: RMB
Project name Related party Ending carrying amount Beginning carrying amount
102Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Accounts payable Lurui Chemical 571851.35 230514.74
Accounts payable Tung Hoi International 8944875.45 3445679.03
Accounts payable Hesheng Chemical Trading 405374.87
XV Stock Payment
1. The Overall Situation of Share-based Payments
□ Applicable □ Not applicable
2. Equity-settled Share-based Payments
□ Applicable □ Not applicable
3. Cash-settled Share-based Payments
□ Applicable □ Not applicable
4. Share-based Payment Expenses for the Period
□ Applicable □ Not applicable
5. Modification and Termination of Share-based Payment
N/A
XVI Commitments and Contingency
1. Significant Commitments
Significant commitments on balance sheet date
Commitments signed but hasn’t been recognized in
financial statements Ending balance
Closing balance of
last year
Commitment on constructing and purchasing long-
lived assets (RMB’0000) 8426.93 3244.50
2. Contingency
(1) Explanation Shall Be Given Even if There Is No Significant Contingency for the Company to Disclose
There was no significant contingency in the Company to disclose.XVII Events after Balance Sheet Date
1. Distribution of Profit
Amount to be distributed for every ten shares (RMB) 1.00
103Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Dividend shares to be distributed for every ten shares (share) 0
Number of shares to be converted into share capital for every
0
ten shares (share)
Amount to be distributed for every ten shares after
1.00
consideration and approval (RMB)
Dividend shares to be distributed for every ten shares after
0
consideration and approval
Number of shares to be converted into share capital for every
0
ten shares after consideration and approval (share)
On August 27 2025 the 3rd meeting of the 11th Board of
Directors of the Company approved the profit distribution plan
for H1 2025 as follows: The Company plans to distribute a cash
dividend of RMB1.00 (inclusive of tax) for every 10 shares
based on a share capital base of 817306563 shares. The total
amount of dividends calculated on this basis is
Distribution of profit
RMB81730656.30. At the 2024 Annual General Meeting held
on May 7 2025 the Company authorized the Board of Directors
to formulate and implement the 2025 interim profit distribution
plan within the specified time frame provided that the conditions
for distribution of profit are met without requiring further
shareholders meeting approval.
2. Notes to Other Events after Balance Sheet Date
As at August 27 2025 the Company has no other events after balance sheet date that should be disclosed.XVIII Notes of Main Items in the Financial Statements of the Company as the Parent
Company
1. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including one year) 405590990.73 405094184.12
One to two years 1369497.40 1507926.77
Two to three years 1064187.46 550870.00
More than three years 269200.00 367200.00
Three to four years 269200.00 200763.00
Four to five years 166437.00
Total 408293875.59 407520180.89
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Category
Carrying amount Bad debt provision Carrying Carrying amount Bad debt provision Carrying
104Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Withdra value Withdra value
Amoun Percenta wal Percenta wal
Amount Amount Amount
t ge (%) proporti ge (%) proporti
on on
Accounts
receivable
withdraw
al of Bad 14440 144408 138052 138052
0.35%100.00%0.34%100.00%
debt 82.86 2.86 5.86 5.86
provision
separately
accrued
Of
which:
Accounts
receivable
withdraw
40684
al of bad 242504 382599 406139 247958 381343
9792.799.65%5.96%99.66%6.11%
debt 16.16 376.57 655.03 53.37 801.66
3
provision
of by
group
Of
which:
Undue
50547505473530168530168
accounts 12.38% 13.01%
382.5082.5098.7598.75
(L/C)
Undue
accounts
13611142923.134688114295120010.113095
(credit 3.33% 1.05% 2.80% 1.05%
764.875341.3461.624051.22
insurance
insured)
Undue
accounts 30469
152349289464298370149185283451
(no credit 9075.5 74.63% 5.00% 73.22% 5.00%
53.78121.74197.7209.88687.84
insurance 2
)
Overdue
accounts
10393163184876207141930222830119647
(credit 2.55% 15.70% 3.48% 15.70%
917.685.082.6001.991.3100.68
insurance
insured)
Overdue
accounts
27597724069203569291299752903216009
(no credit 6.76% 26.24% 7.15% 25.85%
652.163.7758.3994.951.7863.17
insurance
)
40829
256944382599407520261763381343
Total 3875.5 100.00% 6.29% 100.00% 6.42%
99.02376.57180.8979.23801.66
9
The category name of bad debt provision separately accrued: June 2025
Unit: RMB
Beginning balance Ending balance
Name
Carrying Bad debt Carrying Bad debt Withdrawal Reason for
105Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
amount provision amount provision proportion withdraw
Customer in
Customer 1 1380525.86 1380525.86 1444082.86 1444082.86 100.00% financial
difficulty
Total 1380525.86 1380525.86 1444082.86 1444082.86
If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable:
□ Applicable □ Not applicable
(3) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the Current Period
Beginning
Category Reversed or Ending balancebalance Withdrawal Write-offs Others
recovered
Bad debt
26176379.23-589618.21-107738.0025694499.02
provision
Total 26176379.23 -589618.21 -107738.00 25694499.02
(4) Accounts Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Written-off accounts receivable 0.00
(5) Top 5 of the Ending Balance of the Accounts Receivable and the Contract Assets Collected According
to Arrears Party
Unit: RMB
Ending balance of
Proportion to total bad debt provision
Ending balance of
Ending ending balance of of accounts
Ending balance of accounts
Name of the entity balance of accounts receivable and
accounts receivable receivable and
contract assets receivable and impairment
contract assets
contract assets provision for
contract assets
Qiming Apparel Co.
70559429.8470559429.8417.28%3527971.49
Ltd.LuFeng Company
41911769.1541911769.1510.27%2095588.46
Limited
SH Company 26333337.61 26333337.61 6.45% 1316666.88
Chenfeng (Jiangsu)
20424726.3720424726.375.00%1021236.33
Textile Co. Ltd.Customer E 13037273.07 13037273.07 3.19% 109104.11
Total 172266536.04 172266536.04 42.19% 8070567.27
106Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Dividend receivable 225000000.00
Other receivables 1331331125.47 1444344599.59
Total 1556331125.47 1444344599.59
(1) Dividend Receivable
1) Dividend receivable classification
Unit: RMB
Item (or investee) Ending balance Beginning balance
LuFeng Company 225000000.00
Total 225000000.00
2) Disclosure by withdrawal methods for bad debts
□ Applicable □ Not applicable
(2) Other Receivables
1) Other receivables classified by nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Intercourse funds 1323582882.67 1438423895.04
Payment on behalf 6545318.62 6572485.56
Guarantee deposit and cash deposit 1587618.38 2109217.68
Borrowings and petty cash 1320128.21 949740.81
Others 4395109.54 2656594.02
Total 1337431057.42 1450711933.11
2) Disclosure by aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including one year) 1040165026.91 1371173184.48
One to two years 72311441.47 27700512.72
Two to three years 191230630.00 13105000.00
More than three years 33723959.04 38733235.91
Three to four years 54000.00 36109026.05
107Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Four to five years 31055026.05
Over five years 2614932.99 2624209.86
Total 1337431057.42 1450711933.11
3) Disclosure by withdrawal methods for bad debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Categor Withdra
y Carrying
Withdra Carrying
Percenta wal value Percenta walAmount Amount Amount Amount value
ge (%) proporti ge (%) proporti
on on
Of
which:
Withdra
wal of
bad debt 133743 609993 133133 145071 636733 144434
100.00%0.46%100.00%0.44%
provisio 1057.42 1.95 1125.47 1933.11 3.52 4599.59
n by
group
Of
which:
Bad debt
provisio 133434 450876 132983 144762 477518 144284
99.77%0.34%99.79%0.33%
n in 3306.36 9.84 4536.52 2162.05 5.04 6977.01
Stage 1
Bad debt
provisio 292473 142815 149658 292675 142913 149762
0.22%48.83%0.20%48.83%
n in 9.01 0.06 8.95 9.01 6.43 2.58
Stage 2
Bad debt
provisio 163012. 163012. 163012. 163012.
0.01%100.00%0.000.01%100.00%0.00
n in 05 05 05 05
Stage 3
133743609993133133145071636733144434
Total 100.00% 0.46% 100.00% 0.44%
1057.421.951125.471933.113.524599.59
Withdrawal of bad debt provision by adopting the general mode of expected credit loss:
Unit: RMB
First stage Second stage Third stage
Bad debt provision Expected credit Expected credit loss in the Expected credit loss in the Total
loss of the next 12 duration (credit duration (credit impairment
months impairment not occurred) occurred)
Balance of January 1 2025 4775185.04 1429136.43 163012.05 6367333.52
Balance of January 1 2025
in the Current Period
Withdrawal of the Current
-266415.20-986.37-267401.57
Period
Balance of June 30 2025 4508769.84 1428150.06 163012.05 6099931.95
Basis of classification of stages and percentage of provision for bad debts
108Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Changes of carrying amount with significant amount changed of loss provision in the Current Period
□ Applicable □ Not applicable
4) Bad debt provision withdrawn reversed or recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the Current Period
Beginning
Category
balance Reversed or Charged-
Ending balance
Withdrawal Others
recovered off/Verification
Bad debt provision 6367333.52 -267401.57 6099931.95
Total 6367333.52 -267401.57 6099931.95
5) Top 5 of the ending balance of the other receivables collected according to the arrears party
Unit: RMB
Proportion to total Ending balance
Name of the entity Nature Ending balance Aging ending balance of of bad debt
other receivables % provision
Within one year; one
Intercourse
WX Company 999472237.29 to two years; two to 74.73% 2998416.71
funds
three years
Intercourse
XZ Company 122273145.36 Within one year 9.14% 366819.44
funds
Intercourse
ZJ Company 111402987.15 Within one year 8.33% 334208.96
funds
Within one year;
Shandong Lulian New Intercourse
55949237.42 two to three years; 4.18% 167847.71
Materials Co. Ltd. funds
over three years
Shandong Lujia Import & Intercourse
17041491.70 Within one year 1.27% 51124.48
Export Co. Ltd. funds
Total 1306139098.92 97.65% 3918417.30
3. Long-term Equity Investments
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision forCarrying Carrying
impairment Carrying value impairment Carrying value
amount amount
losses losses
Investment to 3776326994. 3766117944. 3776326276. 3766117226.
10209050.0010209050.00
subsidiaries 25 25 50 50
Investment to
joint ventures
107611314.66107611314.66120084271.29120084271.29
and associated
enterprises
3883938308.3873729258.3896410547.3886201497.
Total 10209050.00 10209050.00
91917979
109Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
(1) Investment to Subsidiaries
Unit: RMB
Beginning Increase/decrease for the Current Period Ending
Beginning
balance of balance of
balance Withdrawal Ending balance
Investee provision
(carrying Additional Reduced of
provision
Others (carrying value)for
value) investment investment impairment
for
impairment provision impairment
Xinsheng
17634073
Thermal 176340737.93
7.93
Power
LuFeng 52962000
529620000.00
Company 0.00
Luqun 17178455
171784550.00
Textile 0.00
Lu Thai 12877180
128771800.00
Hong Kong 0.00
Shanghai 20000000.
20000000.00
Luthai 00
Lu Thai 10209050. 10209050.
0.000.00
(America) 00 00
62337238.
VACL 717.75 62337956.32
57
Lulian New 61944390
619443900.00
Materials 0.00
Lujia
10000000.
Import & 10000000.00
00
Export
Lu Thai
Vocational
100000.00100000.00
Training
School
Zhishu 2000000.0
2000000.00
Consulting 0
Huilin
163000001630000000.0
Internation
00.000
al
Banyang 5000000.0
5000000.00
Villa 0
Tianyi 10719000.
10719000.00
Apparel 00
Yuanhui 40000000
400000000.00
Fund 0.00
3766117210209050.3766117944.210209050.
Total 717.75
26.5000500
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Begi Beginn Increase/decrease for the Current Period Ending Ending
nnin ing Gains Adjust Cash Withdr balanc balancAdditi Reduc Chang e
Investee g balanc e of
balan e of onal ed
and ment es of bonus awal
invest invest losses of or of
Others (carryi provisi
ce provisi other
ment ment recogn other
ng on for
(carr on for equity
profits impair
ized compr annou ment value) impair
110Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
ying impair under ehensi nced to provisi ment
value ment the ve issue on
) equity incom
metho e
d
I. Joint ventures
II. Associated enterprises
Haohon 313
1386618870
g 256 1411
666.6148.6
Investm 90.5 124.70
71
ent 8
887
Haoying - 88741
585
Investm 0.00 17414 166.0
80.7
ent .66 5
120
1386610761
0841393
Subtotal 0.00 666.6 0.00 1314.
271.710.04
766
29
120
1386610761
0841393
Total 0.00 666.6 0.00 1314.
271.710.04
766
29
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□ Applicable □ Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.□ Applicable □ Not applicable
4. Operating Revenue and Cost of Sales
Unit: RMB
Amount for the Current Period H1 2024
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 1279023281.60 976688435.81 1343767089.55 1031390146.40
Other operations 101627992.90 70820305.91 124619201.80 80166752.65
Total 1380651274.50 1047508741.72 1468386291.35 1111556899.05
Information in relation to the transaction price apportioned to the residual contract performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet
was RMB0.00 at the period-end among which RMB0.00 was expected to be recognized in XXX RMB0.00 was expected to be
recognized in XXX and RMB0.00 was expected to be recognized in XXX.
5. Investment Income
Unit: RMB
Item Amount for the Current Period H1 2024
Long-term equity investments income accounted by cost method 325000000.00 3668556.38
Long-term equity investments income accounted by equity method 1393710.04 8619094.53
111Lu Thai Textile Co. Ltd. Interim Financial Statements 2025
Investment income from disposal of held-for-trading financial asset 199267507.77 2546832.11
Interest income from debt investments during the holding period 2120807.51
Total 527782025.32 14834483.02
XIX Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
□ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains and losses on disposal of non-current assets -484650.50
Government grants recognized in profit or loss for the Current Period (exclusive of those that are
closely related to the Company’s normal business operations and given in accordance with
11318154.97
defined criteria and in compliance with government policies and have a continuing impact on
the Company’s profit or loss)
Gain/loss on changes in fair value in financial assets and liabilities held by a non-financial
enterprise as well as on disposal of financial assets and financial liabilities (exclusive of the 143576091.96
effective portion of hedges that is related to the Company’s normal business operations)
Non-operating income and expense other than the above 5423599.73
Less: Income tax effects 24241165.21
Non-controlling interests effects (after tax) 991643.02
Total 134600387.93 --
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable □ Not applicable
No such cases for 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—Non-recurring Gains and Losses:
□ Applicable □ Not applicable
2. Return on Equity and Earnings Per Share
Weighted EPS
Profit as of Reporting Period average ROE EPS-basic EPS-diluted
(%) (RMB/share) (RMB/share)
Net profit attributable to ordinary shareholders of the Company 3.75% 0.44 0.40
Net profit attributable to ordinary shareholders of the Company after
2.34%0.280.26
deduction of non-recurring profit or loss
Lu Thai Textile Co. Ltd.August 29 2025
112
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