Lu Thai Textile Co. Ltd. Third Quarterly Report 2022

Stock Code: 000726 200726 Stock Name: LTTC LTTC-B Announcement No. 2022-088

Bond Code: 127016 Bond Name: LTTC Convertible Bonds

LU THAI TEXTILE CO. LTD.THIRD QUARTERLY REPORT 2022

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

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

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

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

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

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

individually accept legal responsibility for such contents.

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

financial statements carried in this Report are true accurate and complete.

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

□Yes □ No

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

Q3 2022 YoY change (%) Q1-Q3 2022 YoY change (%)

Operating revenue (RMB) 1876128426.25 39.35% 5206422889.50 45.97%

Net profit attributable to the listed company’s

302015616.54222.44%695966469.00181.58%

shareholders (RMB)

Net profit attributable to the listed company’s

shareholders before exceptional gains and 322056642.38 299.12% 687635872.02 409.46%

losses (RMB)

Net cash generated from/used in operating

——729088822.32197.99%

activities (RMB)

Basic earnings per share (RMB/share) 0.35 218.18% 0.80 185.71%

Diluted earnings per share (RMB/share) 0.29 190.00% 0.68 161.54%

Weighted average return on equity (%) 3.48% 2.30% 8.25% 5.10%

30 September 2022 31 December 2021 Change (%)

Total assets (RMB) 13352889226.11 12987221271.63 2.82%

Equity attributable to the listed company’s

8800011251.337983307400.0310.23%

shareholders (RMB)

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

(II) Exceptional Gains and Losses

□ Applicable □ Not applicable

Unit: RMB

Item Q3 2022 Q1-Q3 2022 Note

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

-1465459.221230616.81

impairment allowance write-offs)

Government grants through profit or loss (exclusive of government

grants continuously given in the Company’s ordinary course of

16223403.3543944175.72

business at fixed quotas or amounts as per the government’s

policies and standards)

Gain or loss on fair-value changes on held-for-trading financial

assets and liabilities & income from disposal of held-for-trading

financial assets and liabilities and available-for-sale financial assets -40231560.83 -34637019.39

(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

264555.74659816.30

individually conducting impairment test

Non-operating income and expense other than the above 1257102.21 2090163.27

Less: Income tax effects -3590330.72 5027998.78

Non-controlling interests effects (net of tax) -320602.19 -70843.05

Total -20041025.84 8330596.98 --

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

Q3 2022:

Operating revenue 39.35

Net profit attributable to the listed company’s

222.44

shareholders YoY increase in sales volume

Net profit attributable to the listed company’s

299.12

shareholders before exceptional gains and losses

Basic earnings per share 218.18

Increase in Q3 net profit

Diluted earnings per share 190.00

Q1-Q3 2022:

Operating revenue 45.97

Net profit attributable to the listed company’s

181.58

shareholders YoY increase in sales volume

Net profit attributable to the listed company’s

409.46

shareholders before exceptional gains and losses

Net cash generated from/used in operating activities 197.99 Increase in cash generated from selling goods and

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

rendering labor services

Basic earnings per share 185.71

Increase in Q1-Q3 net profit

Diluted earnings per share 161.54

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

520290

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

Top 10 shareholders

Shareho

Nature of Restricted Shares in pledge marked or frozen

lding Total shares

Name of shareholder sharehold shares

percenta held

er held Status Shares

ge

Domestic

non-state-

Zibo Lucheng Textile Investment

owned 15.81% 140353583 0

Co. Ltd.corporati

on

Foreign

Tailun (Thailand) Textile Co. Ltd. corporati 13.32% 118232400 0

on

State-

Central Huijin Assets Management owned

2.24%198841000

Co. Ltd. corporati

on

National Social Security Fund

Other 1.27% 11250051 0

Portfolio 413

Basic Old-Age Insurance Fund

Other 0.70% 6175600 0

Portfolio 1002

Dacheng China Securities Asset

Other 0.59% 5235900 0

Management Plan

GF China Securities Asset

Other 0.59% 5235900 0

Management Plan

ICBC Credit Suisse Innovation

Power Stock Securities Investment Other 0.57% 5100000 0

Fund

FEDERATED HERMES GLOBAL

INVESTMENT FD (CAYMAN) Foreign

MASTER SPC OBOAFTAO corporati 0.52% 4623374 0

FEDERATED HERMES EMG on

ASIA EQUITY FD MASTER S.P.Harvest China Securities Asset

Other 0.50% 4460200 0

Management Plan

Top 10 unrestricted shareholders

Shares by type

Name of shareholder Unrestricted shares held

Type Shares

RMB-

Zibo Lucheng Textile Investment Co. Ltd. 140353583 denominated 140353583

ordinary stock

Domestically

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

stock

RMB-

Central Huijin Assets Management Co. Ltd. 19884100 19884100

denominated

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

ordinary stock

RMB-

National Social Security Fund Portfolio 413 11250051 denominated 11250051

ordinary stock

RMB-

Basic Old-Age Insurance Fund Portfolio 1002 6175600 denominated 6175600

ordinary stock

RMB-

Dacheng China Securities Asset Management

5235900 denominated 5235900

Plan

ordinary stock

RMB-

GF China Securities Asset Management Plan 5235900 denominated 5235900

ordinary stock

RMB-

ICBC Credit Suisse Innovation Power Stock

5100000 denominated 5100000

Securities Investment Fund ordinary stock

FEDERATED HERMES GLOBAL

Domestically

INVESTMENT FD (CAYMAN) MASTER SPC

4623374 listed foreign 4623374

OBOAFTAO FEDERATED HERMES EMG stock

ASIA EQUITY FD MASTER S.P.RMB-

Harvest China Securities Asset Management Plan 4460200 denominated 4460200

ordinary stock

Zibo Lucheng Textile Investment Co. Ltd. is the largest

shareholder of the Company and the actual controller. Tailun

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

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 30 September 2022

the Company had repurchased a total of 14249562 B-shares (or 1.61% of the Company’s total share capital) by way of centralized

bidding. With the highest repurchase price being HKD4.78/share and the lowest being HKD4.37/share the total payment for this

repurchase plan was HKD66559744.77 (inclusive of commissions and alike).IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Lu Thai Textile Co. Ltd.

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

30 September 2022

Unit: RMB

Item 30 September 2022 1 January 2022

Current assets:

Monetary assets 1889863576.29 1999712889.35

Held-for-trading financial assets 311315546.75 1727000.00

Derivative financial assets

Notes receivable 213404167.86 227740247.89

Accounts receivable 664833365.40 647277198.51

Receivables financing 30191407.30 34663071.88

Prepayments 87703941.00 54545954.20

Other receivables 49732204.38 74191613.22

Including: Interest receivable

Dividends receivable 18563298.39 47025975.44

Financial assets purchased under resale

agreements

Inventories 2421623168.76 2345346794.28

Other current assets 15618937.38 55992522.81

Total current assets 5684286315.12 5441197292.14

Non-current assets:

Long-term equity investments 146348211.74 169443106.66

Investments in other equity instruments

Other non-current financial assets 190052000.00 190052000.00

Investment property 20686276.92 21362302.03

Fixed assets 5596441340.88 5561601374.44

Construction in progress 321599887.10 237579082.99

Right-of-use assets 494069197.57 257019286.15

Intangible assets 355365584.96 363130978.14

Development costs

Goodwill 20563803.29 20563803.29

Long-term prepaid expense 3392544.77 672601.04

Deferred income tax assets 137203093.35 138516136.50

Other non-current assets 382880970.41 586083308.25

Total non-current assets 7668602910.99 7546023979.49

Total assets 13352889226.11 12987221271.63

Current liabilities:

Short-term borrowings 766605044.24 1011034138.32

Held-for-trading financial liabilities 26706972.97

Derivative financial liabilities

Notes payable 55450000.00

Accounts payable 145726152.83 335401371.30

Advances from customers

Contract liabilities 186158722.04 204967348.96

Employee benefits payable 264003641.33 272014296.09

Taxes and levies payable 45821735.32 29457702.72

Other payables 86873913.99 97200565.31

Including: Interest payable

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

Dividends payable 441113.64 441113.64

Current portion of non-current liabilities 386956288.43 8877404.52

Other current liabilities 51543542.24 120434721.81

Total current liabilities 2015846013.39 2079387549.03

Non-current liabilities:

Long-term borrowings 305581331.94 684962473.24

Bonds payable 1425179389.91 1395480652.71

Lease liabilities 107309720.21 121357658.41

Long-term payables

Long-term employee benefits payable 45933262.13 57384062.39

Provisions

Deferred income 162826224.17 188958133.78

Deferred income tax liabilities 96818985.32 92571310.14

Other non-current liabilities

Total non-current liabilities 2143648913.68 2540714290.67

Total liabilities 4159494927.07 4620101839.70

Owners’ equity:

Share capital 887941151.00 882341295.00

Other equity instruments 71383830.75 71384656.84

Capital reserves 386925309.98 340587387.65

Less: Treasury stock 122187056.22 78908300.00

Other comprehensive income 137811310.36 -36423748.37

Specific reserve

Surplus reserves 1215124336.54 1215124336.54

General reserve

Retained earnings 6223012368.92 5589201772.37

Total equity attributable to owners of the

8800011251.337983307400.03

Company as the parent

Non-controlling interests 393383047.71 383812031.90

Total owners’ equity 9193394299.04 8367119431.93

Total liabilities and owners’ equity 13352889226.11 12987221271.63

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

The Company’s financial manager: Zhang Keming

2. Consolidated Income Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2022 Q1~Q3 2021

1. Revenues 5206422889.50 3566681098.18

Including: Operating revenue 5206422889.50 3566681098.18

2. Costs and expenses 4261512476.47 3437174000.38

Including: Cost of sales 3850817744.47 2878395430.90

Taxes and levies 55064913.87 43478612.19

Selling expense 91979470.34 71833118.67

Administrative expense 281331829.22 224935595.96

Development costs 185127476.13 192279069.87

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

Finance costs -202808957.56 26252172.79

Including: Interest expense 68286145.08 47286720.59

Interest income 37133045.19 26653174.94

Add: Other income 42259767.72 32202552.65

Return on investment (“-” for loss) -7289966.58 42609424.69

Including: Share of profit or loss of joint ventures and

-9771373.432390020.65

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) -37118426.22 -7042658.55

Credit impairment loss (“-” for loss) -7461737.20 8651050.43

Asset impairment loss (“-” for loss) -148491843.12 -21801260.48

Asset disposal income (“-” for loss) 1214440.32 57584604.74

3. Operating profit (“-” for loss) 788022647.95 241710811.28

Add: Non-operating income 5681260.63 3710317.82

Less: Non-operating expense 3045887.88 3289918.95

4. Gross profit (“-” for loss) 790658020.70 242131210.15

Less: Income tax expense 85120535.89 7627638.21

5. Net profit (“-” for net loss) 705537484.81 234503571.94

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net loss) 705537484.81 234503571.94

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

695966469.00247163916.64

the parent (“-” for net loss)

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

9571015.81-12660344.70

net loss)

6. Other comprehensive income net of tax 174235058.73 -9185149.27

Attributable to owners of the Company as the parent 174235058.73 -9227723.48

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 174235058.73 -9227723.48

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

174147637.94-9240108.61

currency-denominated financial statements

6.2.7 Other 87420.79 12385.13

Attributable to non-controlling interests 42574.21

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

7. Total comprehensive income 879772543.54 225318422.67

7.1 Attributable to owners of the Company as the parent 870201527.73 237936193.16

7.2 Attributable to non-controlling interests 9571015.81 -12617770.49

8. Earnings per share

8.1 Basic earnings per share 0.80 0.28

8.2 Diluted earnings per share 0.68 0.26

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

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

The Company’s financial manager: Zhang Keming

3. Consolidated Cash Flow Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2022 Q1~Q3 2021

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 4948795995.75 3442267636.72

Tax and levy rebates 139638698.35 67120825.12

Cash generated from other operating activities 39167849.67 57187354.22

Subtotal of cash generated from operating activities 5127602543.77 3566575816.06

Payments for commodities and services 2961997864.79 2044777843.69

Cash paid to and for employees 1174509559.57 1049865869.62

Taxes and levies paid 147611564.29 125523365.24

Cash used in other operating activities 114394732.80 101740045.00

Subtotal of cash used in operating activities 4398513721.45 3321907123.55

Net cash generated from/used in operating activities 729088822.32 244668692.51

2. Cash flows from investing activities:

Proceeds from disinvestment 73323521.50 1250970000.00

Return on investment 30382568.02 49155061.86

Net proceeds from the disposal of fixed assets intangible assets

6734473.051569053.40

and other long-lived assets

Net proceeds from the disposal of subsidiaries and other business

units

Cash generated from other investing activities 41312947.23 65238925.65

Subtotal of cash generated from investing activities 151753509.80 1366933040.91

Payments for the acquisition of fixed assets intangible assets and

249612464.61360680597.37

other long-lived assets

Payments for investments 380000000.00 710870000.00

Cash used in other investing activities 172976756.21 2385258.55

Subtotal of cash used in investing activities 802589220.82 1073935855.92

Net cash generated from/used in investing activities -650835711.02 292997184.99

3. Cash flows from financing activities:

Capital contributions received 19086927.80 80383350.00

Including: Capital contributions by non-controlling interests to

subsidiaries

Borrowings received 1147983807.40 1346412092.55

Cash generated from other financing activities

Subtotal of cash generated from financing activities 1167070735.20 1426795442.55

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

Repayment of borrowings 1444841681.89 1033835751.27

Interest and dividends paid 97315472.76 76008078.32

Including: Dividends paid by subsidiaries to non-controlling

interests

Cash used in other financing activities 66765540.66 13762509.00

Subtotal of cash used in financing activities 1608922695.31 1123606338.59

Net cash generated from/used in financing activities -441851960.11 303189103.96

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

83690400.2212905967.35

equivalents

5. Net increase in cash and cash equivalents -279908448.59 853760948.81

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

6. Cash and cash equivalents end of the period 1690098436.30 2250291356.28

(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.

29 October 2022

9