Lu Thai Textile Co. Ltd. First Quarterly Report 2023

Stock Code: 000726 200726 Stock Name: LTTC LTTC-B Announcement No. 2023-026

Bond Code: 127016 Bond Name: LTTC Convertible Bonds

LU THAI TEXTILE CO. LTD.FIRST QUARTERLY REPORT 2023

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

hereby guarantee that the contents of this Report are true accurate and complete and free of any misrepresentations misleading

statements or material omissions.Important Notes:

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

hereby guarantee that the contents of this Report are true accurate and complete and free of any misrepresentations misleading

statements or material omissions and collectively and individually accept legal responsibility for such contents.

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

in this Report are true accurate and complete.

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

□Yes □ No

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

versions the Chinese version shall prevail.I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

Q1 2023 Q1 2022 YoY change (%)

Operating revenue (RMB) 1378301160.57 1580088801.60 -12.77%

Net profit attributable to the listed company’s shareholders

95759162.05159375310.19-39.92%

(RMB)

Net profit attributable to the listed company’s shareholders

51332367.74137429342.24-62.65%

before exceptional gains and losses (RMB)

Net cash generated from/used in operating activities

-36789172.94-15953827.96-130.60%

(RMB)

Basic earnings per share (RMB/share) 0.11 0.18 -38.89%

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

Diluted earnings per share (RMB/share) 0.10 0.16 -37.50%

Weighted average return on equity (%) 1.06% 1.97% -0.91%

31 March 2023 31 December 2022 Change (%)

Total assets (RMB) 13306785463.97 13351097602.03 -0.33%

Equity attributable to the listed company’s shareholders

9094257162.239014156872.710.89%

(RMB)

(II) Exceptional Gains and Losses

□ Applicable □ Not applicable

Unit: RMB

Item Q1 2023 Note

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

-697500.60

write-offs)

Government grants through profit or loss (exclusive of government grants

continuously given in the Company’s ordinary course of business at fixed quotas or 18606158.88

amounts as per the government’s policies and standards)

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

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

34509392.62

for-sale financial assets (exclusive of the effective portion of hedges that arise in the

Company’s ordinary course of business)

Reverse of provision for impairment of accounts receivable individually conducting

1479606.09

impairment test

Non-operating income and expense other than the above 1577880.73

Less: Income tax effects 9634096.21

Non-controlling interests effects (net of tax) 1414647.20

Total 44426794.31

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

□Applicable □ Not applicable

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

No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:

□Applicable □ Not applicable

No such cases in the Reporting Period.(III) Changes in Key Financial Information and Explanation of why

□ Applicable □ Not applicable

Item Change (%) Main reason for change

Q1 2023

Net profit attributable to the listed

-39.92%

company’s shareholders

YoY decrease in fabric sales volume and YoY

Net profit attributable to the listed

increase in unit costs of fabric sales

company’s shareholders before -62.65%

exceptional gains and losses

Net cash generated from/used in Decrease in net cash generated from selling goods

-130.60%

operating activities (RMB) and rendering labor services for Q1 2023

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

Basic earnings per share -38.89%

Decrease in Q1 2023 net profit

Diluted earnings per share -37.50%

II Shareholder Information

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

as Holdings of Top 10 Shareholders

Unit: share

Number of ordinary shareholders at the period- Number of preferred shareholders with resumed

490960

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

Top 10 shareholders

Sharehol

Restricted Shares in pledge marked or frozen

Nature of ding Total shares

Name of shareholder shares

shareholder percenta held

held Status Shares

ge

Domestic

Zibo Lucheng Textile non-state-

15.81%1403535830

Investment Co. Ltd. owned

corporation

Tailun (Thailand) Textile Co. Foreign

13.32%1182324000

Ltd. corporation

State-

Central Huijin Assets

owned 2.24% 19884100 0

Management Co. Ltd.corporation

National Social Security Fund

Other 1.49% 13260051 0

Portfolio 413

ICBC Credit Suisse Innovation

Power Stock Securities Other 1.05% 9360000 0

Investment Fund

National Social Security Fund

Other 0.71% 6268249 0

Portfolio 412

Gaohua-HSBC-GOLDMAN Foreign

0.69%61261350

SACHS & CO.LLC corporation

Dacheng China Securities Asset

Other 0.59% 5235900 0

Management Plan

GF China Securities Asset

Other 0.59% 5235900 0

Management Plan

FEDERATED HERMES

GLOBAL INVESTMENT FD

(CAYMAN) MASTER SPC Foreign

0.59%51932880

OBOAFTAO FEDERATED corporation

HERMES EMG ASIA EQUITY

FD MASTER S.P.Top 10 unrestricted shareholders

Shares by type

Name of shareholder Unrestricted shares held

Type Shares

RMB-denominated

Zibo Lucheng Textile Investment Co. Ltd. 140353583 140353583

ordinary stock

Domestically listed

Tailun (Thailand) Textile Co. Ltd. 118232400 118232400

foreign stock

RMB-denominated

Central Huijin Assets Management Co. Ltd. 19884100 19884100

ordinary stock

RMB-denominated

National Social Security Fund Portfolio 413 13260051 13260051

ordinary stock

RMB-denominated

ICBC Credit Suisse Innovation Power Stock 9360000 9360000

ordinary stock

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

Securities Investment Fund

RMB-denominated

National Social Security Fund Portfolio 412 6268249 6268249

ordinary stock

Gaohua-HSBC-GOLDMAN SACHS & RMB-denominated

61261356126135

CO.LLC ordinary stock

Dacheng China Securities Asset Management RMB-denominated

52359005235900

Plan ordinary stock

RMB-denominated

GF China Securities Asset Management Plan 5235900 5235900

ordinary stock

FEDERATED HERMES GLOBAL

INVESTMENT FD (CAYMAN) MASTER Domestically listed

51932885193288

SPC OBOAFTAO FEDERATED HERMES foreign stock

EMG ASIA EQUITY FD MASTER S.P.Zibo Lucheng Textile Investment Co. Ltd. is the largest

shareholder of the Company and the actual controller. Tailun

(Thailand) Textile Co. Ltd. is the second largest shareholder as

Related or acting-in-concert parties among the shareholders

well as sponsor of foreign capital of the Company. All of other

above

shareholders are people holding public A share or B share and the

Company is not able to confirm whether there is associated

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

Naught

any)

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

□Applicable □ Not applicable

III Other Significant Events

□ Applicable □ Not applicable

The Company held the Third Extraordinary General Meeting of 2022 on 15 July 2022 where the Proposal on Repurchase of

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

Foreign Shares (B-shares) on 16 July 2022. On 27 July 2022 the Company carried out the first repurchase. As of 31 March 2023

the Company had repurchased a total of 21318828 B-shares (or 2.40% of the Company’s total share capital) by way of

centralized bidding. With the highest repurchase price being HKD4.80/share and the lowest being HKD4.37/share the tota l

payment for this repurchase plan was HKD99984829.86 (inclusive of commissions and alike).IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Lu Thai Textile Co. Ltd.

31 March 2023

Unit: RMB

Item 31 March 2023 1 January 2023

Current assets:

Monetary assets 1842251705.72 2067768253.97

Held-for-trading financial assets 612877366.83 267695159.48

Derivative financial assets

Notes receivable 125460783.71 168755715.84

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

Accounts receivable 572029095.06 660427526.19

Receivables financing 25419110.16 11208304.78

Prepayments 165095825.47 95021598.32

Other receivables 46379646.16 89855659.99

Including: Interest receivable

Dividends receivable 18563298.41 18563298.39

Financial assets purchased under resale

agreements

Inventories 2127737177.41 2107849708.33

Other current assets 94379191.18 76847903.07

Total current assets 5611629901.70 5545429829.97

Non-current assets:

Long-term equity investments 207088336.75 184168625.69

Investments in other equity

instruments

Other non-current financial assets 337746721.75 337110000.00

Investment property 20235593.51 20460935.21

Fixed assets 5684227975.81 5807847850.67

Construction in progress 302975733.24 199943501.73

Right-of-use assets 470913946.28 481420505.31

Intangible assets 350250579.72 352889578.06

Development costs

Goodwill 20563803.29 20563803.29

Long-term prepaid expense 2690507.96 2948981.97

Deferred income tax assets 147716612.66 155774523.25

Other non-current assets 150745751.30 242539466.88

Total non-current assets 7695155562.27 7805667772.06

Total assets 13306785463.97 13351097602.03

Current liabilities:

Short-term borrowings 614720431.89 518946415.96

Held-for-trading financial liabilities 505616.88 4276929.70

Derivative financial liabilities

Notes payable 42600000.00 55450000.00

Accounts payable 172652499.63 246588463.74

Advances from customers

Contract liabilities 166798285.28 206879672.53

Employee benefits payable 230812553.38 330027159.72

Taxes and levies payable 12400763.91 31483442.06

Other payables 90193389.35 83357296.71

Including: Interest payable

Dividends payable 441113.64 441113.64

Current portion of non-current 407158854.12 307921837.35

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

liabilities

Other current liabilities 50750046.85 66889025.17

Total current liabilities 1788592441.29 1851820242.94

Non-current liabilities:

Long-term borrowings 116634001.20 186431096.24

Bonds payable 1450861846.79 1438162231.27

Lease liabilities 95309940.33 98501303.83

Long-term payables

Long-term employee benefits payable 57417997.65 57417997.65

Provisions

Deferred income 158086149.35 159615037.36

Deferred income tax liabilities 156141460.52 151243432.80

Other non-current liabilities

Total non-current liabilities 2034451395.84 2091371099.15

Total liabilities 3823043837.13 3943191342.09

Owners’ equity:

Share capital 887633267.00 887633151.00

Other equity instruments 71383779.76 71383830.75

Capital reserves 402648341.16 395872135.71

Less: Treasury stock 154396198.73 154396198.73

Other comprehensive income 80842744.03 107628898.09

Specific reserve 4351011.07

Surplus reserves 1215124336.54 1215124336.54

General reserve

Retained earnings 6586669881.40 6490910719.35

Total equity attributable to owners of the

9094257162.239014156872.71

Company as the parent

Non-controlling interests 389484464.61 393749387.23

Total owners’ equity 9483741626.84 9407906259.94

Total liabilities and owners’ equity 13306785463.97 13351097602.03

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

The Company’s financial manager: Zhang Keming

2. Consolidated Income Statement

Unit: RMB

Item Q1 2023 Q1 2022

1. Revenues 1378301160.57 1580088801.60

Including: Operating revenue 1378301160.57 1580088801.60

2. Costs and expenses 1322345679.23 1409725138.20

Including: Cost of sales 1092250995.98 1194927176.45

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

Taxes and levies 16217092.59 15116716.56

Selling expense 33253553.15 33331245.31

Administrative expense 82717307.27 92775354.83

Development costs 61804412.07 56733874.74

Finance costs 36102318.17 16840770.31

Including: Interest costs 18056914.23 18139093.23

Interest revenue 14108606.20 9609487.98

Add: Other income 18522742.21 24599534.70

Return on investment (“-” for loss) 38579946.99 886584.91

Including: Share of profit or loss of joint ventures and

22919711.06-1636415.09

associates

Income from the derecognition of financial assets at

amortized cost (“-” for loss)

Exchange gain (“-” for loss)

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

Gain on changes in fair value (“-” for loss) 18849156.70 2360000.00

Credit impairment loss (“-” for loss) 12305904.55 1853310.17

Asset impairment loss (“-” for loss) -37085094.15 -12447808.03

Asset disposal income (“-” for loss) -697500.60 -603708.22

3. Operating profit (“-” for loss) 106430637.04 187011576.93

Add: Non-operating income 1794053.25 1828060.78

Less: Non-operating expense 216172.51 1354778.97

4. Gross profit (“-” for loss) 108008517.78 187484858.74

Less: Income tax expense 16514278.35 29939184.05

5. Net profit (“-” for net loss) 91494239.43 157545674.69

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net loss) 91494239.43 157545674.69

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

5.2 By ownership

5.2.1 Net profit attributable to owners of the Company as the

95759162.05159375310.19

parent

5.2.1 Net profit attributable to non-controlling interests -4264922.62 -1829635.50

6. Other comprehensive income net of tax -26786154.06 -5707490.39

Attributable to owners of the Company as the parent -26786154.06 -5707490.39

6.1 Items that will not be reclassified to profit or loss

6.1.1 Changes caused by remeasurements on defined benefit

schemes

6.1.2 Other comprehensive income that will not be reclassified

to profit or loss under the equity method

6.1.3 Changes in the fair value of investments in other equity

instruments

6.1.4 Changes in the fair value arising from changes in own

credit risk

6.1.5 Other

6.2 Items that will be reclassified to profit or loss -26786154.06 -5707490.39

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

6.2.1 Other comprehensive income that will be reclassified to

profit or loss under the equity method

6.2.2 Changes in the fair value of other debt investments

6.2.3 Other comprehensive income arising from the

reclassification of financial assets

6.2.4 Credit impairment allowance for other debt investments

6.2.5 Reserve for cash flow hedges

6.2.6 Differences arising from the translation of foreign

-26687109.42-5438747.08

currency-denominated financial statements

6.2.7 Other -99044.64 -268743.31

Attributable to non-controlling interests

7. Total comprehensive income 64708085.37 151838184.30

Attributable to owners of the Company as the parent 68973007.99 153667819.80

Attributable to non-controlling interests -4264922.62 -1829635.50

8. Earnings per share

8.1 Basic earnings per share 0.11 0.18

8.2 Diluted earnings per share 0.10 0.16

Where business combinations under common control occurred in the current period the net profit achieved by the acquirees before

the combinations was RMB0.00 with the amount for the same period of last year being RMB0.00.Legal representative: Liu Zibin The Company’s chief accountant: Zhang Keming

The Company’s financial manager: Zhang Keming

3. Consolidated Cash Flow Statement

Unit: RMB

Item Q1 2023 Q1 2022

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 1395297566.56 1478567179.99

Tax and levy rebates 40085910.13 38224128.00

Cash generated from other operating activities 56881830.64 10812024.85

Subtotal of cash generated from operating activities 1492265307.33 1527603332.84

Payments for commodities and services 987058521.38 1024631847.67

Cash paid to and for employees 471044601.37 452625366.04

Taxes and levies paid 40258178.31 31608127.59

Cash used in other operating activities 30693179.21 34691819.50

Subtotal of cash used in operating activities 1529054480.27 1543557160.80

Net cash generated from/used in operating activities -36789172.94 -15953827.96

2. Cash flows from investing activities:

Proceeds from disinvestment 418000000.00 13323521.50

Return on investment 1323008.67

Net proceeds from the disposal of fixed assets intangible assets and

303764.224503457.00

other long-lived assets

Net proceeds from the disposal of subsidiaries and other business

units

Cash generated from other investing activities 16101451.88 12608822.18

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

Subtotal of cash generated from investing activities 435728224.77 30435800.68

Payments for the acquisition of fixed assets intangible assets and

129897146.3185652349.91

other long-lived assets

Payments for investments 763871013.14

Cash used in other investing activities 75148727.93 108589.66

Subtotal of cash used in investing activities 968916887.38 85760939.57

Net cash generated from/used in investing activities -533188662.61 -55325138.89

3. Cash flows from financing activities:

Capital contributions received 20783280.00

Including: Capital contributions by non-controlling interests to

subsidiaries

Borrowings received 276173678.66 419668185.51

Cash generated from other financing activities

Subtotal of cash generated from financing activities 276173678.66 440451465.51

Repayment of borrowings 120706753.67 528860301.40

Interest and dividends paid 7340755.36 8524817.85

Including: Dividends paid by subsidiaries to non-controlling

interests

Cash used in other financing activities 4773203.00 4426403.00

Subtotal of cash used in financing activities 132820712.03 541811522.25

Net cash generated from/used in financing activities 143352966.63 -101360056.74

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

-11540604.60-3557919.18

equivalents

5. Net increase in cash and cash equivalents -438165473.52 -176196942.77

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

6. Cash and cash equivalents end of the period 1384731796.64 1793809942.12

(II) Independent Auditor’s Report

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

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

Lu Thai Textile Co. Ltd.

28 April 2023

9