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鲁 泰B:2013年第三季度报告正文(英文版)2013-10-24  

						                                   Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.




Stock code: 000726, 200726            Stock abbreviation: LTA, LTB                    Announcement No.: 2013-037


                                   Luthai Textile Co., Ltd.


                  Abstract of the Report for the Third Quarter of 2013


                             Section I. Important Reminders

The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior
management staff of Luthai Textile Co., Ltd. (hereinafter referred to as “the Company”) warrant
that this report is factual, accurate and complete without any false record, misleading statement or
material omission. And they shall be jointly and severally liable for that.
All directors attended the board session for reviewing this report.
Liu Shizhen, company principal, Zhang Hongmei, chief of the accounting work, and Zhang Keming,
chief of the accounting organ (chief of accounting), hereby confirm that the financial statements
enclosed in this report are factual, accurate and complete.
This report is prepared in both Chinese and English. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.




                                                                                                                 1
                                               Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.




           Section II. Financial Highlights & Change of Shareholders

I. Major accounting data and financial indexes

Does the Company adjust retrospectively or restate accounting data of previous years due to change of the
accounting policy or correction of any accounting error?
□ Yes √ No
                                                       30 Sept. 2013                  31 Dec. 2012               Increase/decrease (%)

Total assets (RMB Yuan)                                8,136,693,033.82                    8,153,279,084.33                        -0.2%

Net assets attributable to shareholders of the
                                                       5,663,198,872.26                    5,268,701,258.26                        7.49%
Company (RMB Yuan)

                                                                                YoY
                                                                                                                           YoY
                                                     Jul.-Sept. 2013      increase/decrease    Jan.-Sept. 2013
                                                                                                                   increase/decrease (%)
                                                                                (%)

Operating revenues (RMB Yuan)                        1,578,162,869.91                 12.82% 4,638,658,125.08                    10.27%

Net profit attributable to shareholders of the
                                                       259,965,918.94                 62.67%    676,141,809.32                   46.57%
Company (RMB Yuan)
Net profit attributable to shareholders of the
Company after extraordinary gains and losses           229,232,434.34                 63.53%    622,651,758.44                   40.58%
(RMB Yuan)
Net cash flows from operating activities (RMB
                                                            --                   --             898,069,611.06                   22.64%
Yuan)

Basic EPS (RMB Yuan/share)                                         0.28                  75%                0.71                 54.35%

Diluted EPS (RMB Yuan/share)                                       0.28                  75%                0.71                 54.35%

Weighted average ROE (%)                                          4.7%                 1.64%             12.38%                    3.48%

Items and amounts of extraordinary gains and losses
√Applicable □Inapplicable
                                                                                                                        Unit: RMB Yuan

                                                                                         Amount as of Jan.-Sept.
                                        Item                                                                                Note
                                                                                                  2013

Gains/losses on the disposal of non-current assets (including the offset part of asset
                                                                                                      1,237,895.97
impairment provisions)

Government grants recognized in the current period, except for those acquired in
the ordinary course of business or granted at certain quotas or amounts according to                 40,090,381.88
the country’s unified standards

Gains and losses on change in fair value from tradable financial assets and tradable
financial liabilities, as well as investment income from disposal of tradable                        26,765,182.99
financial assets and tradable financial liabilities and financial assets available for


                                                                                                                                           2
                                                 Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.


sales, except for effective hedging related with normal businesses of the Company

Other gain/loss items that meet the definition of an extraordinary gain/loss                            1,632,728.00

Less: Income tax effects                                                                               10,813,879.86

        Minority interests effects (after tax)                                                          5,422,258.10

Total                                                                                                  53,490,050.88             --

Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable

II. Total number of shareholders at the period-end and shares held by the top ten
shareholders

                                                                                                                                   Unit: share

Total number of shareholders at the
                                                                                                                                      97,118
period-end

                                                 Shares held by the top ten shareholders

                                                                                                                       Pledged or frozen
                                                                               Sharehol
                                                                                           Number of     Number of          shares
                                                              Nature of          ding
                   Name of shareholder                                                     the shares the restricted                  Numbe
                                                             shareholder       percenta                                Status of
                                                                                             held        shares held                   r of
                                                                               ge (%)                                   shares
                                                                                                                                      shares

                                                         Domestic
ZIBO LUCHENG TEXTILE INVESTMENT CO.,
                                                         non-state-owned         12.9% 123,314,700
LTD.
                                                         corporation

                                                         Foreign
TAILUN (THAILAND) TEXTILE CO., LTD.                                             12.37% 118,232,400 118,232,400
                                                         corporation

DBS VICKERS (HONG KONG) LTD A/C                          Foreign
                                                                                 4.24% 40,528,642
CLIENTS                                                  corporation

                                                         Domestic
HUASHANG PROSPEROUS GROWTH STOCK
                                                         non-state-owned         1.43% 13,651,132
FUND
                                                         corporation

                                                         Foreign
LYNAS ASIA FUND                                                                  1.27% 12,099,838
                                                         corporation

VALUE PARTNERS HIGH-DIVIDEND STOCKS                      Foreign
                                                                                  1.1% 10,513,697
FUNDS                                                    corporation

GUANGFA STRATEGY OPTIMIZATION                            Domestic
                                                                                 0.84%      8,074,561
MIXED-TYPE SECURITIES INVESTMENT FUND non-state-owned



                                                                                                                                               3
                                             Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.


                                                       corporation

                                                       Foreign
VALUE PARTNERS CLASSIC FUND                                                    0.75%    7,137,350
                                                       corporation

                                                       Domestic
YINHUA SUSTAINING GROWTH STOCK FUND non-state-owned                            0.63%    6,000,000
                                                       corporation

                                                       Foreign
HTHK-MANULIFE CHINA VALUE FUND                                                  0.6%    5,731,606
                                                       corporation

                                      Shares held by the top ten non-restricted share holders

                                                                           Number of                       Type of shares
                       Name of shareholder                            non-restricted shares
                                                                                                      Type                  Number
                                                                               held

ZIBO LUCHENG TEXTILE INVESTMENT CO., LTD.                                      123,314,700 RMB ordinary shares              123,314,700

                                                                                              Domestically listed
DBS VICKERS (HONG KONG) LTD A/C CLIENTS                                         40,528,642                                   40,528,642
                                                                                              foreign shares

HUASHANG PROSPEROUS GROWTH STOCK FUND                                           13,651,132 RMB ordinary shares               13,651,132

                                                                                              Domestically listed
LYNAS ASIA FUND                                                                 12,099,838                                   12,099,838
                                                                                              foreign shares

                                                                                              Domestically listed
VALUE PARTNERS HIGH-DIVIDEND STOCKS FUNDS                                       10,513,697                                   10,513,697
                                                                                              foreign shares

GUANGFA STRATEGY OPTIMIZATION MIXED-TYPE
                                                                                 8,074,561 RMB ordinary shares                8,074,561
SECURITIES INVESTMENT FUND

                                                                                              Domestically listed
VALUE PARTNERS CLASSIC FUND                                                      7,137,350                                    7,137,350
                                                                                              foreign shares

YINHUA SUSTAINING GROWTH STOCK FUND                                              6,000,000 RMB ordinary shares                6,000,000

                                                                                              Domestically listed
HTHK-MANULIFE CHINA VALUE FUND                                                   5,731,606                                    5,731,606
                                                                                              foreign shares

                                                                                              Domestically listed
MANULIFE GLOBAL FUND                                                             5,057,340                                    5,057,340
                                                                                              foreign shares

                                                                      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
Explanation on associated relationship or/and persons acting in as well as sponsor of foreign capital of the Company. All of
concert among the above-mentioned shareholders:                       other shareholders are people holding circulating A share or
                                                                      circulating B share and the Company is not able to confirm
                                                                      whether there is associated relationship or concerted action
                                                                      among other shareholders.

Shareholders taking part in margin financing and securities lending
                                                                      Naught
(if any)



                                                                                                                                          4
                                      Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.


Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes √ No



                                Section III. Significant Events

I. Major changes of main accounting statement items and financial indicators in the reporting
period, as well as reasons for the changes

1. Transactional financial assets stood at RMB 24,913,390.00 on 30 Sept. 2013, up 35.48% from the opening
amount, which was mainly because of the fair value changes of transactional financial assets.
2. Notes receivable stood at RMB 106,314,854.22 on 30 Sept. 2013, down 33.03% from the opening amount,
which was mainly because the banker’s acceptance bills received were endorsed and used to pay for materials.
3. Prepayments stood at RMB 208,087,238.54 on 30 Sept. 2013, up 116.27% from the opening amount, which
was mainly because the prepayments for raw materials increased.
4. Other non-current assets stood at RMB 17,661,156.58 on 30 Sept. 2013, down 74.05% from the opening
amount, which was mainly because the amount used for B-share repurchase was transferred into monetary funds.
5. Construction in process stood at RMB 370,061,619.16 on 30 Sept. 2013, up 52.64% from the opening amount,
which was mainly because Xinjiang Luthai input more to the spinning project.
6. Engineering materials stood at RMB 39,376,096.12 on 30 Sept. 2013, up 226.57% from the opening amount,
which was mainly because the special equipment increased.
7. Short-term borrowings stood at RMB 937,582,275.53 on 30 Sept. 2013, down 33.74% from the opening
amount, which was mainly because mature bank loans were repaid.
8. Notes payable stood at RMB 14,375,247.62 on 30 Sept. 2013, up 51.13% from the opening amount, which was
mainly because the payments made with notes increased.
9. Taxes and fares payable stood at RMB 96,402,590.09 on 30 Sept. 2013, up 89.49% from the opening amount,
which was mainly because the enterprise income tax and the city maintainance & construction tax increased.
10. Non-current liabilities due within one year stood at RMB 61,480,00.00 on 30 Sept. 2013, up 378.39% from
the opening amount, which was mainly because the long-term borrowings due within one year increased.
11. Business taxes and surtaxes stood at RMB 40,446,798.89 for the current period, up 229.05% from the same
period of last year, which was mainly because the city maintenance & construction tax, the education surtax, etc.
increased.
12. Asset impairment loss stood at RMB -2,597,359.38 for the current period, down 1230.42% from the same
period of last year, which was mainly because the asset impairment loss recognized at age on accounts receivable
and other receivables decreased.
13. Gains on fair value changes stood at RMB 6,524,749.00 for the current period, up 144.63% from the same
period of last year, which was mainly because some transactional financial assets were disposed upon maturity,
carrying over the formerly recognized gains and losses on fair value changes, and the fair value of transactional
financial assets changed.
14. Non-operating incomes stood at RMB 45,053,343.38 for the current period, up 70.32% from the same period
of last year, which was mainly because government subsidies incrreased.
15. Income tax expenses stood at RMB 136,129,483.74 for the current period, up 74.87% from the same period of
last year, which was mainly because the taxable income increased.


                                                                                                                    5
                                                   Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.


II. Progress and influence of significant events, as well as the analysis and explanation on
solutions

1. On 25 June 2012, the 2nd temporary shareholders’ general meeting in 2012 reviewed and approved relevant
matters about repurchasing part of domestically listed foreign shares (B share). On 8 Sep. 2012, Report of Luthai
Textile Co., Ltd. on Repurchasing Part of Domestically Listed Foreign Shares (B share) and announcement on
approving the plan of repurchasing part of B shares were declared. For details see announcement No. 2012-037
published on Cninfo website (www.cninfo.com.cn). The Company began to implement plan of repurchasing part
of B shares on 10 Sep. 2012. The repurchasing period is due on 24 June 2013 with repurchase of B shares at an
amount of 48,837,304 shares. On 12 July 2013, the Company registered liquidation of Shenzhen subsidiary of
limited liability companies in China Security, and finished write-off works stated above. In respect of the specific
progress and subsequent development, for details see the relevant announcements on Cninfo website.
     Overview of the
                                     Date of disclosure               Index to the relevant announcement disclosed on the website
     significant event

                                                           Report of Luthai Textile Co., Ltd. on Repurchasing Part of Domestically
Repurchase of some            8 Sept. 2012
                                                           Listed Foreign Shares (B share)(www.cninfo.com.cn)
domestically listed foreign
                                                           Report on Completion of the Repurchase of Some Domestically Listed
shares (B-shares)             12 Jul. 2013
                                                           Foreign Shares (B-shares) & Change of the Shares (www.cninfo.com.cn)


III. Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the reporting period or such commitments carried down into the reporting period

                                                                                      Time of
                           Commitment                                                                Period of
   Commitment                                              Contents                   making                               Fulfillment
                               maker                                                               commitment
                                                                                    commitment

                                               Zibo Lucheng will not reduce                       Not reduce the
                                                                                                                    Increase of bonus share
                                               its shareholding within 60                         shareholding
                                                                                                                    for 2005 and 2006 has
                                               months after reform of                             within 60
                                                                                                                    been fulfilled. The total
                                               non-tradable shares and, within                    months after
                                                                                                                    profit of 2008 increased
                                               24 months after the term of 60                     reform of
                                                                                                                    by 58.06% compared to
                                               months, the price of selling                       non-tradable
                                                                                                                    that of 2005. Till 12 Jun.
                                               holding shares shall not be                        shares and,
                                                                                                                    2011, the non-tradable
                         Zibo Lucheng          lower than RMB 15 per share (if                    within 24
Commitments made                                                                                                    term of 9835.80 ten
                         Textile Investment the share capital changes,                            months after
in a share reform                                                                  12 Jun. 2006                     thousand shares held by
                         Co., Ltd.             ex-rights and ex-dividend will                     the term of 60
                                                                                                                    Lu Cheng Company
                                               be conducted); it proposed and                     months, the
                                                                                                                    came to an end and the
                                               voted for a cash distribution not                  price of
                                                                                                                    above shares came into
                                               lower than 50% of the profit                       selling holding
                                                                                                                    market on 24 Jun. 2011,
                                               available for distribution in the                  shares shall
                                                                                                                    up to 23 Jun. 2013 had
                                               year at the 2006 Shareholders’                    not be lower
                                                                                                                    expired 24 months, and
                                               General Meeting and 2007                           than RMB 15
                                                                                                                    are not reduced at
                                               Shareholders’ General Meeting;                    per share (if
                                                                                                                    present.
                                               it will increase the LUTHAI A                      the share


                                                                                                                                                 6
                                              Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.


                                          shares held by it through trading                   capital
                                          at the secondary market with the                    changes,
                                          dividends received in 2005 and                      ex-rights and
                                          2006, and the increase of the                       ex-dividend
                                          LUTHAI A shares held shall be                       will be
                                          accomplished within 12 months                       conducted)
                                          after the dividend is transferred
                                          to its account. In 2008, the total
                                          profit increased by not less than
                                          30% compared with that in
                                          2005.

Commitments made
in an acquisition
                        None              None                                                None            None
report or a report on
equity changes

Commitments made
in asset                None              None                                                None            None
reorganization

                                                                                                              Investment projects of
                                                                                                              raised funds including
                                                                                                              project on 150 thousand
                                                                                                              ingots of high-end
                                                                                                              combed yarn, project on
                                                                                                              production line of 50
                                                                                                              thousand ingots of
                                                                                                              two-for-one twisting,
                                                                                                              project on
                                                                                                              complementing
                                                                                                              circulating funds of the
Commitments at the
                                                                                                              company, project on
time of initial public Luthai Textile Co., Investment project of raised
                                                                               19 Dec. 2008                   production line of 10
issuance or             Ltd.              funds
                                                                                                              million meters of
re-financing
                                                                                                              high-end jacquard for
                                                                                                              female garments have
                                                                                                              already been fulfilled. On
                                                                                                              18 Oct. 2011, the 3rd
                                                                                                              temporary shareholders’
                                                                                                              general meeting
                                                                                                              approved that RMB 140
                                                                                                              million raised funds of
                                                                                                              this project were
                                                                                                              transferred into project
                                                                                                              on increasing 40 million



                                                                                                                                           7
                                                     Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.


                                                                                                              meters of high-end
                                                                                                              yarn-dyed fabric
                                                                                                              production line. Till the
                                                                                                              end of the reporting
                                                                                                              period, this project has
                                                                                                              already been finished.
                                                                                                              And project on network
                                                                                                              construction of brand and
                                                                                                              marketing is under the
                                                                                                              implementation.

Other commitments
made to minority           None              None                                             None            None
shareholders

Executed in time or
                           Yes
not?

Detailed reason for
failing to execute
                           None
and the plan for the
next step (If any)


IV. Predict the 2013 annual operating results

Warnings of possible loss or large-margin change of the accumulated net profit made during the period from the
beginning of the year to the end of the next reporting period compared with the same period of the last year
according to prediction, as well as explanations on the reasons

□Applicable √Inapplicable

V. Investments in derivatives

                                                                                                         Unit: RMB Ten thousand Yuan

                                                                                                                     Proportio
                     Rela                                                                                             n of the
                     ted-                                                                                             closing
                                                                                             Impairm                                Actual
                     part                                                                                            investmen
                              Type of      Initial                                 Opening     ent       Closing                   gain/loss
Operat                 y                                                                                             t amount
         Relation            derivative investment       Start date   Ending date investmen provisio investment                       in
  or                 trans                                                                                             in the
                             investment   amount                                  t amount    n (if      amount                    reporting
                     actio                                                                                           Company
                                                                                              any)                                  period
                     n or                                                                                            ’s closing
                     not                                                                                             net assets
                                                                                                                        (%)

Comm Non-rela                The
                     No                   332,328.55 1 Jan. 2013 18 Sep. 2014 95,484.23               0 122,323.29     20.15% 2,048.76
ercial ted party             forward



                                                                                                                                               8
                                                       Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.


Bank                         foreign
                             exchange
                             settlement

                             The
Comm                         forward
           Non-rela                                          26 Sep.
ercial                 No    foreign              5,350.98                25 Dec. 2013          0        0     3,490.1     0.57%      -24.72
           ted party                                         2013
Bank                         exchange
                             settlement

Comm
           Non-rela          Interest-rat
ercial                 No                         11,929.8 17 Jun. 2013 13 Dec. 2013            0        0    11,929.8     1.97%           0
           ted party         e swap
Bank

Total                                         349,609.33            --            --     95,484.23       0 137,743.19     22.69% 2,024.04

Capital      source    for    derivative
                                             Self-owned funds
investment
Cases involving lawsuit (if
                                             No
applicable)

Disclosure date of the board
announcement           approving       the
                                             16 May 2013
wealth management entrustment
(if any)

Disclosure date of the general
meeting announcement approving
                                             No
the         wealth          management
entrustment (if any)

                                             The Company conducted derivatives products transaction in order for hedging. And the forward
                                             settlement hedging was operated by installments, with the relevant amount not more than the
                                             planned derivatives products transactions. And all derivatives products transaction was
                                             zero-deposit. Meanwhile, the Company had a complete risk control system for sufficient
                                             analysis and prevention of possible risks such as risk of laws and regulations, credit risk,
                                             operation risk and market risk.
                                             1. Risk of laws and regulations:
Analysis on risks and control
                                             The Company conducted derivatives products transaction in strict accordance with relevant laws
measures of derivative products
                                             and rules as well as regulatory policies from government securities regulatory authorities, if
held in the reporting period
                                             there were no standard operation procedures and strict approval procedures, it was easy to cause
(including but not limited to
                                             compliant and regulatory risks existing in the validity and feasibility of contract, commitments
market risk, liquidity risk, credit
                                             and other legal documents signed.
risk, operation risk, law risk, etc.)
                                             Precautionary measures: The Company carefully studied and mastered laws, regulations and
                                             policies relevant to derivative products transaction, formulated internal control rules for the
                                             forward settlement hedging business, standardized the operation procedures. And strengthened
                                             the compliant examination on derivative products investment business, and strictly abided by
                                             relevant laws, regulations and the Company’s internal management rules.
                                             2. Credit risk and liquidity risk:
                                             When the contract matures, the Company couldn’t deliver as scheduled due to insufficient

                                                                                                                                                9
                                             Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.


                                   liquidity, and the counterparty or the Company couldn’t fulfill the contract due to other aspects
                                   except the liquidity, which would cause credit risk and further economic losses for the
                                   Company.
                                   Precaution measure: the Company chose the powerful financial institutions with good reputation
                                   as the counterparty, and signed standard derivative products transaction contract, as well as
                                   strictly controlled the credit risk of counterparty. The Company conducted derivative investment
                                   transactions according to the relevant approval procedure, which was in line with relevant laws,
                                   regulations, the Company’s Articles of Association, the Management Rules for Derivative
                                   Investment of Luthai Textile Co., Ltd. and the Plan for Derivative Translation in 2013 of Luthai
                                   Textile Co., Ltd. approved at the 28th Meeting of Sixth of board of directors on 15 May 2013,
                                   and performed relevant information disclosure responsibilities. The Company decided the up
                                   limit for the amount of derivative products transaction according to the production and
                                   operation scale and the progress of foreign exchange income for the Company, and delivered by
                                   phases. It was also possible to use extension of term and other ways to ensure the fulfillment of
                                   contract as schedules upon the mature of contract, and wouldn’t cause any loss of credit risk for
                                   the Company due to insufficient liquidity or other reasons.
                                   3. Operation risk:
                                   The derivative financial transactions had high specialty and complexity, so imperfect internal
                                   operation procedures, staffs and external events would make the Company to undertake risks
                                   during the transaction.
                                   Precaution measure: The Company promulgated strict authorization and approval system and
                                   perfect regulatory mechanism, fixed the departments, operation procedures and approval
                                   procedures system to conduct derivative products transaction, established special risk control
                                   positions, implemented strict authorization and post checks and balances system, meanwhile, it
                                   improved the overall quality of relevant personnel through strengthening the business training
                                   and professional ethics education for them. Besides, it established the System of Reporting the
                                   Abnormal Situation Timely, formed an efficient risk management procedures, so as to ensure to
                                   lower the operation risks to the maximum.
                                   4. Market risk:
                                   The forward settlement of exchange is an important derivative products transaction, which was
                                   significantly affected by the exchange rate fluctuation due to its large amount. The Central Bank
                                   decided to expand the fluctuation range of RMB exchange rate from bidirectional 0.5% to
                                   bidirectional 1% since 16 Apr. 2012, which would increase the difficulty in the operation of
                                   forward settlement of exchange. Besides, if the RMB is devalued by a large margin on the basis
                                   of the current situation before the contract is due, so then, the larger losses shall incur in the
                                   contract on forward settlement of exchange signed by the Company.
                                   Risk analysis and precaution measure: Renminbi appreciated significantly compared with that
                                   before the exchange rate reform, but Renminbi internationalization would be a long-term goal,
                                   which decided that Renminbi would not depreciated significantly. Although the increased
                                   fluctuation range added the operation difficulty, it provided a certain opportunity, which
                                   required relevant personnel of the Company actively master the market trend, carefully operate
                                   and hold positive opportunity, so as to try the best to reduce the market risks under the condition
                                   of increased market difficulty.

Changes of market prices or fair   1. Up to 30 Sep. 2013, the Company held 25 undue financial derivative product contracts,


                                                                                                                                     10
                                                  Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.


values in the reporting period of     totaling US$ 220.0811 million, with 22 forward settlement contracts, 2 interest rate swap
the invested derivatives. And the     contracts and 1 forward exchange contracts (the latest expiration before Sep. 2014). The above
analysis on the fair value of the     financial derivative products accounted for 22.69% of the closing net assets.
derivatives should include the        2. 1-3 quarter of 2013, the due financial derivative products of the Company totally equaled to
specific use methods and the          US$ 337.5625 million, all delivered on time and the gain generated was RMB 20.2404 million.
relevant assumptions and              The due forward settlement was US$ 334.5357 million, all delivered on time, generating gain of
parameters.                           RMB 20.4876 million. And the due forward foreign exchange trading amount equaled to
                                      US$ 3.0268 million, which was all delivered as scheduled and generated gain of RMB 0.2472
                                      million..

Whether significant changes
occurred to the Company’s
accounting policy and specific
accounting principles of              Unchanged
derivatives in the reporting period
compared to the previous
reporting period

                                      The Company independent director Zhou Zhiji, Wang lei, Sun Ruizhe, Su Xin, Xu Jianjun
                                      conducting derivatives business have issued the following professional advice: we were of the
Specific opinion from                 opinion that it would strengthen the Company’s competitiveness to use derivative transactions
independent directors on the          with focus on forward settlement and purchase as an effective tool to avoid foreign exchange
Company’s derivatives investment risks, to strengthen the relevant internal control and to carry out the loss and risk prevention
and risk control                      measures so as to improve the operation and management. It was considered feasible for the
                                      Company to conduct derivative transactions with focus on forward settlement and purchase, and
                                      no harm was done to interests of the Company’s shareholders.


VI. Researches, visits and interviews received in the reporting period

                        Place of        Way of       Visitor                                           Main discussion and materials
 Time of reception                                                           Visitor
                        reception     reception       type                                               provided by the Company

                                      Telephone                                                       Teleconference of 2013
                                                               Chang Xin Asset Management,
16 Aug. 2013         The office       Communi Institution                                             semi-annual report of Luthai A
                                                               Sheng Ming
                                      cation                                                          shares.

                                      Telephone                                                       Teleconference of 2013
16 Aug. 2013         The office       Communi Institution Dacheng Fund, Liu Yang                      semi-annual report of Luthai A
                                      cation                                                          shares.议

                                      Telephone                                                       Teleconference of 2013
                                                               Tebon Fund, Bai Zhongguang, Chen
16 Aug. 2013         The office       Communi Institution                                             semi-annual report of Luthai A
                                                               Li
                                      cation                                                          shares.

                                      Telephone                                                       Teleconference of 2013
16 Aug. 2013         The office       Communi Institution CGA Investment, Dong Tao                    semi-annual report of Luthai A
                                      cation                                                          shares.议

16 Aug. 2013         The office       Telephone Institution Dongguan Securities, Ding Shuo            Teleconference of 2013


                                                                                                                                        11
                                      Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.


                            Communi                                                      semi-annual report of Luthai A
                            cation                                                       shares.

                            Telephone                                                    Teleconference of 2013
16 Aug. 2013   The office   Communi Institution Soochow Fund, Zhao Meiling               semi-annual report of Luthai A
                            cation                                                       shares.

                            Telephone                                                    Teleconference of 2013
16 Aug. 2013   The office   Communi Institution Fuanda Fund, Zhu Yi                      semi-annual report of Luthai A
                            cation                                                       shares.

                            Telephone                                                    Teleconference of 2013
16 Aug. 2013   The office   Communi Institution Goldman Sachs, Wen Xintong               semi-annual report of Luthai A
                            cation                                                       shares.议

                            Telephone                                                    Teleconference of 2013
                                                   ICBC Credit Suisse Fund, Gao
16 Aug. 2013   The office   Communi Institution                                          semi-annual report of Luthai A
                                                   Yuanyuan
                            cation                                                       shares.

                            Telephone                                                    Teleconference of 2013
16 Aug. 2013   The office   Communi Institution GF Fund, Zhang Dongyi                    semi-annual report of Luthai A
                            cation                                                       shares.

                            Telephone                                                    Teleconference of 2013
                                                   Franklin Templeton Sealand Fund,
16 Aug. 2013   The office   Communi Institution                                          semi-annual report of Luthai A
                                                   Wu Xiyan
                            cation                                                       shares.

                            Telephone                                                    Teleconference of 2013
16 Aug. 2013   The office   Communi Institution Guotai Junan, Zhou Chen                  semi-annual report of Luthai A
                            cation                                                       shares.

                            Telephone                                                    Teleconference of 2013
                                                   Cathay Securities Investment Trust,
16 Aug. 2013   The office   Communi Institution                                          semi-annual report of Luthai A
                                                   Chen Zhouting
                            cation                                                       shares.

                            Telephone                                                    Teleconference of 2013
                                                   HuaAn Funds, Chen Yuan,Yang
16 Aug. 2013   The office   Communi Institution                                          semi-annual report of Luthai A
                                                   Xingxing
                            cation                                                       shares.

                            Telephone                                                    Teleconference of 2013
16 Aug. 2013   The office   Communi Institution HSBCJT Fund : Qiu Dongrong               semi-annual report of Luthai A
                            cation                                                       shares.

                            Telephone                                                    Teleconference of 2013
16 Aug. 2013   The office   Communi Institution Milestone Management: Weng Di            semi-annual report of Luthai A
                            cation                                                       shares.

                            Telephone                                                    Teleconference of 2013
16 Aug. 2013   The office   Communi Institution Lord Fund, Huang Wei                     semi-annual report of Luthai A
                            cation                                                       shares.

                            Telephone                                                    Teleconference of 2013
16 Aug. 2013   The office               Institution Penghua Fund, Li Huijie
                            Communi                                                      semi-annual report of Luthai A



                                                                                                                          12
                                        Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.


                             cation                                                     shares.

                             Telephone                                                  Teleconference of 2013
                                                    Pole Point Assets Management,
16 Aug. 2013   The office    Communi Institution                                        semi-annual report of Luthai A
                                                    Huang Feng
                             cation                                                     shares.

                             Telephone                                                  Teleconference of 2013
16 Aug. 2013   The office    Communi Institution China International Fund, Qu Yu        semi-annual report of Luthai A
                             cation                                                     shares.

                             Telephone                                                  Teleconference of 2013
16 Aug. 2013   The office    Communi Institution Life Assets, Zhang Huasheng            semi-annual report of Luthai A
                             cation                                                     shares.

                             Telephone                                                  Teleconference of 2013
16 Aug. 2013   The office    Communi Institution Taikang AMC, Guo Xiaoyan               semi-annual report of Luthai A
                             cation                                                     shares.

                             Telephone                                                  Teleconference of 2013
16 Aug. 2013   The office    Communi Institution TX Investment Consulting, Shen Ni      semi-annual report of Luthai A
                             cation                                                     shares.

                             Telephone                                                  Teleconference of 2013
16 Aug. 2013   The office    Communi Institution Industrial Securities, Lin Xiaofeng    semi-annual report of Luthai A
                             cation                                                     shares.

                             Telephone                                                  Teleconference of 2013
16 Aug. 2013   The office    Communi Institution Yuancheng Investment, Ma Lina          semi-annual report of Luthai A
                             cation                                                     shares.

                             Telephone                                                  Teleconference of 2013
                                                    Zheshang Property & Casualty
16 Aug. 2013   The office    Communi Institution                                        semi-annual report of Luthai A
                                                    Insurance, Ma Buchuan
                             cation                                                     shares.

                             Telephone                                                  Teleconference of 2013
16 Aug. 2013   The office    Communi Institution BOC International Securities, Li Na    semi-annual report of Luthai A
                             cation                                                     shares.

                             Telephone                                                  Teleconference of 2013
16 Aug. 2013   The office    Communi Institution BOC Securities, Bai Bingyang           semi-annual report of Luthai A
                             cation                                                     shares.

               The
               Reception     Field
22 Aug. 2013                             Institution Galaxy Securities, Hua Xiaowei     Basic situation of the Company.
               room of the   research
               Company

               The
               Reception     Field
22 Aug. 2013                             Institution Essence Fund, Zheng Ri             Basic situation of the Company.
               room of the   research
               Company

22 Aug. 2013   The           Field       Institution Huatai Securities, Zhu Lili        Basic situation of the Company.



                                                                                                                          13
                                        Abstract of the Report for the Third Quarter of 2013 of Luthai Textile Co., Ltd.


               Reception     research
               room of the
               Company

               The
               Reception     Field
22 Aug. 2013                             Institution Union Assets, Xu Zhen                Basic situation of the Company.
               room of the   research
               Company

               The
               Reception     Field
22 Aug. 2013                             Institution Fuanda Fund, Zhu Yi                  Basic situation of the Company.
               room of the   research
               Company

               The
               Reception     Field
22 Aug. 2013                             Institution China Merchants Securitis, Su Ping   Basic situation of the Company.
               room of the   research
               Company




                                                                                                                            14