2021-08-27-深交所-鲁_泰Ｂ_2021年半年度报告（英文版）_200页_2mb

Summary of Lu Thai Textile Co., Ltd. Interim Report 2021

Key Highlights from the Interim Report (August 2021):

1. Financial Performance:

   • Revenue: Operating revenue for H1 2021 was ¥2.22 billion, a slight decrease of 2.91% year-on-year.
   • Profit: Net profit attributable to shareholders fell by 49.79% YoY to ¥153.5 million, primarily due to challenges in the export market.
   • Cash Flow: Net cash from operating activities decreased by 12.72% YoY to ¥182.76 million.

2. Business Operations:

   • Core Business: Focus on high-quality, functional fabrics for business wear, domestic markets, and international expansion via subsidiaries in Cambodia and Vietnam.
   • Product Development: Efforts to expand offerings include yoga pants, T-shirts, and eco-friendly fabrics.
   • Raw Materials: Higher cotton and textile auxiliaries costs due to global supply issues and currency appreciation.

3. Management Discussion:

   • Market Challenges: Export markets slower due to exchange rate and pandemic disruptions, while domestic demand remained strong.
   • • R&D Focus: Investments in innovation for ironing-free and smart textiles.
   • Environmental Responsibility: Ongoing commitment to sustainable manufacturing and emissions control.

4. Governance & Corporate Actions:

   • Share Incentive Plan: Launched a 2021 restricted stock incentive plan.
   • Dividend Policy: No interim dividend declared.

5. Risk Factors:

• Macroeconomic Uncertainty: Geopolitical and post-pandemic recovery challenges.
• Raw Material Volatility: High cotton price swings impact margins.
• Currency Risk: Increased due to RMB appreciation.

Conclusion: While facing export and input cost pressures, Lu Thai maintained core operations and innovation focus, with domestic markets providing steady support. Financial health remains stable, though profit margins deteriorated due to external factors.