鲁泰Ｂ：2021年半年度报告（英文版）.PDF

Lu Thai Textile Co., Ltd. Interim Report 2021 1 LU THAI TEXTILE CO., LTD. INTERIM REPORT 2021 August 2021 Lu Thai Textile Co., Ltd. Interim Report 2021 2 Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of Lu Thai Textile Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein. Liu Zibin, the Companys legal representative, Zhang Hongmei, the Companys Chief Accountant, and Zhang Keming, the Companys Financial Manager hereby guarantee that the financial statements carried in this Report are factual, accurate and complete. All the Companys directors have attended the Board meeting for the review of this Report and its summary. The Company has described in detail in this Report the possible risks. Please refer to the contents under the heading “Risks Facing the Company and Countermeasures” in “Part III Management Discussion and Analysis” of this Report. Securities Times, Shanghai Securities News, China Securities Journal, Ta Kung Pao (HK) and have been designated by the Company for its information disclosure in 2021. And all information about the Company shall be subject to whats disclosed by the Company on the aforesaid media. Investors are kindly reminded to pay attention to investment risks. The Company is subject to the Guideline No. 17 of the Shenzhen Stock Exchange on Information Disclosure by Industryfor Listed Companies Engaging in Textile and Apparel. In the first half of 2021, COVID-19 has slowed down with the popularization of vaccination. But there are repeated outbreaks in several regions and there is a common problem of lacking vaccines in low-income countries. The global economy is recovering, but is ill-balanced in regions and industries. The Chinese government has relatively mature experience in controlling the spread of COVID-19 in the shortest time. The domestic consumer market witnessed a rapid recovery. However, the recovery of companies mainly focusing on exporting the fabrics of suits and shirts and manufacturing shirts is slow due to the exchange rate appreciation of RMB on year and the increase in the prices of the raw materials like cotton and textile auxiliaries. For further information, see “Part III Management Discussion and Analysis”. The Company has no interim dividend plan, either in the form of cash or stock. This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese versions shall prevail. Lu Thai Textile Co., Ltd. Interim Report 2021 3 Table of Contents Part I Important Notes, Table of Contents and Definitions . 2 Part II Corporate Information and Key Financial Information . 6 Part III Management Discussion and Analysis . 9 Part IV Corporate Governance . 29 Part V Environmental and Social Responsibility . 32 Part VI Significant Events . 37 Part VII Share Changes and Shareholder Information . 55 Part VIII Preferred Shares . 67 Part IX Bonds . 68 Part X Financial Statements . 72 Lu Thai Textile Co., Ltd. Interim Report 2021 4 Documents Available for Reference 1. The financial statements signed and stamped by the Companys legal representative, Chief Accountant and Financial Manager; 2. The originals of all the Companys announcements and documents disclosed to the public during the Reporting Period on Securities Times, Shanghai Securities News, China Securities Journal and Ta Kung Pao. Lu Thai Textile Co., Ltd. Interim Report 2021 5 Definitions Term Definition The “Company”, “LTTC”, “Issuer” or “we” Lu Thai Textile Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires The Board of Directors The Board of Directors of Lu Thai Textile Co., Ltd. The Supervisory Committee The Supervisory Committee of Lu Thai Textile Co., Ltd. CSRC The China Securities Regulatory Commission RMB, RMB0,000 Expressed in the Chinese currency of Renminbi, expressed in tens of thousands of Renminbi The “Company Law” The “Company Law of the Peoples Republic of China” The “Securities Law” The “Securities Law of the Peoples Republic of China” The “Reporting Period” or “Current Period” The period from 1 January 2021 to 30 June 2021 Lu Thai Textile Co., Ltd. Interim Report 2021 6 Part II Corporate Information and Key Financial Information I Corporate Information Stock name LTTC, LTTC-B Stock code 000726, 200726 Changed stock name (if any) N/A Stock exchange for stock listing Shenzhen Stock Exchange Company name in Chinese 鲁泰纺织股份有限公司 Abbr. (if any) 鲁泰纺织 Company name in English (if any) LU THAI TEXTILE CO.，LTD Abbr. (if any) LTTC Legal representative Liu Zibin II Contact Information Board Secretary Securities Representative Name Zhang Keming Zheng Weiyin and Li Kun Address No. 81, Songling East Road, Zichuan District, Zibo, Shandong, P.R.China No. 81, Songling East Road, Zichuan District, Zibo, Shandong, P.R.China Tel. 0533-5277008 0533-5285166 Fax 0533-5418805 0533-5418805 Email address ， III Other Information 1. Contact Information of the Company Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address and email address of the Company in the Reporting Period. Applicable Not applicable No change occurred to the said information in the Reporting Period, which can be found in the 2020 Annual Report. Lu Thai Textile Co., Ltd. Interim Report 2021 7 2. Media for Information Disclosure and Place where this Report is Lodged Indicate by tick mark whether any change occurred to the information disclosure media and the place for lodging the Companys periodic reports in the Reporting Period. Applicable Not applicable The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the Companys periodic reports and the place for lodging such reports did not change in the Reporting Period. The said information can be found in the 2020 Annual Report. IV Key Financial Information Indicate by tick mark whether there is any retrospectively restated datum in the table below. Yes No H1 2021 H1 2020 Change (%) Operating revenue (RMB) 2,220,313,650.94 2,286,744,080.79 -2.91% Net profit attributable to the listed companys shareholders (RMB) 153,497,344.66 144,119,579.22 6.51% Net profit attributable to the listed companys shareholders before exceptional gains and losses (RMB) 54,281,532.08 108,105,593.17 -49.79% Net cash generated from/used in operating activities (RMB) 182,761,025.14 209,392,265.69 -12.72% Basic earnings per share (RMB/share) 0.17 0.17 0.00% Diluted earnings per share (RMB/share) 0.19 0.16 18.75% Weighted average return on equity (%) 1.97% 1.85% 0.12% 30 June 2021 31 December 2020 Change (%) Total assets (RMB) 12,400,765,912.80 12,129,903,960.65 2.23% Equity attributable to the listed companys shareholders (RMB) 7,868,221,583.13 7,687,577,590.72 2.35% V Accounting Data Differences under Chinas Accounting Standards for Business Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting Standards 1. Net Profit and Equity under CAS and IFRS Applicable Not applicable No such differences for the Reporting Period. Lu Thai Textile Co., Ltd. Interim Report 2021 8 2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards Applicable Not applicable No such differences for the Reporting Period. VI Exceptional Gains and Losses Applicable Not applicable Unit: RMB Item Amount Note Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) 58,531,388.42 Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Companys ordinary course of business at fixed quotas or amounts as per the governments uniform standards) 19,089,311.11 Gain or loss on fair-value changes in trading and derivative financial assets and liabilities & income from disposal of trading and derivative financial assets and liabilities and investments in other debt obligations (exclusive of the effective portion of hedges that arise in the Companys ordinary course of business) 39,004,803.56 Reversed portions of impairment allowances for receivables and contract assets which are tested individually for impairment 5,386,518.99 Non-operating income and expense other than the above -1,405,920.92 Less: Income tax effects 18,018,514.02 Non-controlling interests effects (net of tax) 3,371,774.56 Total 99,215,812.58 - Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the PublicExceptional Gain/Loss Items: Applicable Not applicable No such cases for the Reporting Period. Lu Thai Textile Co., Ltd. Interim Report 2021 9 Part III Management Discussion and Analysis I Principal Activity of the Company in the Reporting Period The economic environment has been complicated since 2021. The uncertainties in the recovery of the post-pandemic era are a lot, especially when it comes to the situations like the surging in the prices of mass merchandise and the high cost of human resources. The Company is centered on the clients and continues to implement the strategies of “Improve Quality and Efficiency” and “Overall Internationalization”. The Company focuses on expanding the market, adjusting the structure and building capabilities to make sure all programs running smoothly. For the Reporting Period, the Company recorded revenue of RMB2,220 million, an operating profit of RMB167 million, a net profit attributable to the listed companys shareholders of RMB153 million and a net profit attributable to the listed companys shareholders before exceptional gains and losses of RMB54 million, down 2.91%, down 4.71%, up 6.51%, and down 49.79% respectively from the same period of last year. No changes occurred to the Companys principal operations, products or business models, or the primary factors driving the Companys growth in the Reporting Period. During the Reporting Period, the Company has been rated as the leader in the cotton textile industry during the 13th Five Year Plan by China Cotton Textile Association and as the top 30 enterprises in 2021 in the dyeing and printing industry by China Dyeing and Printing Association. Besides, it has been conferred the Special Contribution Award (2016-2020) in the textile and apparel industry of Shandong Province and appraised as the advanced enterprise in corporate culture development in 2020 by Shandong Textile and Apparel Association. The Company has prioritized the following aspects: (I) The Company has put the customer on the first place, optimized the product structure and expanded the market. 1. It has built an all-around relationship with its customers so as to stabilize order and production. The Company has established a high-level docking mechanism and a multi-tiered communication mechanism with its strategic customers. Whats more, it has advanced the development of front-end design services, especially the service that aims at strategic customers. It has also stepped up the efforts to complete 16 tailored projects including the development of viscose and knitted fabrics. The Company has set up a specialized service group targeted at the strategic and valuable customers. In doing so, it can improve the marketing capability and enhance the capability of defusing and controlling marketing risks. With the above measures, the Company has witnessed an increase in its order and its revenue has also increased. 2. The Company has driven the development of business wear and expanded the domestic market of business wear. The Company has constantly adjusted the product structure in domestic market based on its competitive businesses and the situation of domestic market. Moreover, it has kept enhancing the cooperation with strategic customers of domestic market and planned its business development and the focus of cooperation in the future. During the Reporting Period, the profit of the Companys career apparel in domestic market has seen a significant rise and the career apparels share in the Companys domestic businesses has also witnessed an increase. 3. The Company has stepped up its efforts to enrich the variety of its products and expanded its market. During the Reporting Period, the Company has made endeavors to develop new fabrics like knitted and pants fabrics. Moreover, it has diversified its garment products including yoga pants and T-shirt. Therefore, its volume of business and new customers have increased. Whats more, it has actively explored new models of business cooperation, which includes the cooperation with e-commerce platforms. (II) The Company now has put an emphasis on its product lines and fully leveraged the strength of its international industrial distribution. The Company has possessed six product lines including yan, yarn-dyed, printing and dyeing, functional and knitted fabrics and garment. Although the severe international market situation and the significant price rise of raw materials have had an impact on the Company, it has adjusted the structure of its product lines and explored new operation models. The technology of high-quality and Lu Thai Textile Co., Ltd. Interim Report 2021 10 ironing-free knitted fabrics of shirts developed by the Company has passed the science evaluation and reached the advanced international level. Faced with the pressure brought by COVID-19 pandemic, Lu Thai (Burma) Textile Co., Ltd and Lu Thai (Tan Chau) Textile Co., Ltd have fully leveraged geographical advantages to cushion the impacts of tariff barrier and Sino-US trade friction. During the Reporting Period, the yarn-dyed factory of Lu Thai (Burma) Textile Co., Ltd has completed the task of taking orders of strategic customers. Lu Thai (Cambodia) Textile Co., Ltd has seen a reduction in its order due to the impact of the pandemic. Despite that, the Company has made constant endeavors to control and prevent COVID-19 and stressed the building of company staff with a lowest rate of employee turnover. (III) The Company has taken various measures to stabilize the number of its employees. A stable number of employees is the cornerstone for the Companys development. During the Reporting Period, the Company was pressured by a shortage of employees. Therefore, it has implemented the2021 restricted stock incentive plan, adjusted its salary structure and improved staff benefits. In doing so, it has stabilized the number of ordinary employees and core technical staff. The Company has always upheld its mission of creating wealth and making contributi