Lu Thai Textile Co., Ltd. Interim Report 2018 (Summary) Stock Code: 000726, 200726 Stock Name: LTTC, LTTC-B Announcement No. 2018-034 LU THAI TEXTILE CO., LTD. INTERIM REPORT 2018 (SUMMARY) Part I Important Notes This Summary is based on the full text of the 2018 Interim Report of Lu Thai Textile Co., Ltd. (together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a full understanding of the Company’s operating results, financial condition and future development plans, investors should carefully read the aforesaid full text, which has been disclosed together with this Summary on the media designated by the China Securities Regulatory Commission (the “CSRC”). Statement Except for the following directors, all the other directors attended in person the Board meeting for the review of this Report and its summary. Reason for not attending in Proxy entrusted to attend the Name Office title person meeting Xu Zhinan Director For reason of work Liu Zibin Zeng Facheng Director For reason of work Qin Guiling Bi Xiuli Independent Director For reason of work Xu Jianjun Zhao Yao Independent Director For reason of work Wang Xinyu Independent auditor’s modified opinion: □ Applicable √ Not applicable Board-approved interim cash and/or stock dividend plan for ordinary shareholders: □ Applicable √ Not applicable The Company has no interim dividend plan, either in the form of cash or stock. Board-approved interim cash and/or stock dividend plan for preferred shareholders: □ Applicable √ Not applicable 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. Part II Key Corporate Information 1. Stock Profile Stock name LTTC, LTTC-B Stock code 000726, 200726 1 Lu Thai Textile Co., Ltd. Interim Report 2018 (Summary) Stock exchange for stock listing Shenzhen Stock Exchange Contact information Board Secretary Securities Representative Name Qin Guiling Zheng Weiyin and Li Kun No. 81, Songling East Road, Zichuan No. 81, Songling East Road, Zichuan Office address District, Zibo, Shandong, P.R.China District, Zibo, Shandong, P.R.China Tel. 0533-5266188 0533-5285166 E-mail address qinguiling@lttc.com.cn wyzheng@lttc.com.cn,likun@lttc.com.cn 2. Key Financial Information Indicate by tick mark whether there is any retrospectively restated datum in the table below. √ Yes □ No Business combination under common control resulted in the retrospective restatements in the following table. H1 2017 Change (%) H1 2018 Before Restated Restated Operating revenue (RMB) 3,281,014,155.43 2,990,459,696.43 2,997,093,395.84 9.47% Net profit attributable to the listed 377,355,959.02 393,069,981.55 395,130,296.26 -4.50% company’s shareholders (RMB) Net profit attributable to the listed company’s shareholders before 366,948,339.88 385,081,158.45 387,141,210.63 -5.22% exceptional items (RMB) Net cash generated from/used in operating 697,784,710.77 342,919,758.30 343,246,750.57 103.29% activities (RMB) Basic earnings per share (RMB/share) 0.41 0.43 0.43 -4.65% Diluted earnings per share (RMB/share) 0.41 0.43 0.43 -4.65% Weighted average return on equity (%) 5.13% 5.58% 5.58% -0.45% 31 December 2017 Change (%) 30 June 2018 Before Restated Restated Total assets (RMB) 10,233,390,492.09 10,170,624,027.75 10,170,624,027.75 0.62% Equity attributable to the listed company’s 7,060,561,399.27 7,230,942,770.16 7,230,942,770.16 -2.36% shareholders (RMB) 3. Shareholders and Their Holdings at Period-End Unit: share Number of preferred shareholders with resumed voting Number of ordinary shareholders 57,783 0 rights (if any) Top 10 shareholders Sharehol Pledged or frozen Nature of ding Number of Restricted shares Name of shareholder shareholder percenta shares shares Share ge Status s Domestic Zibo Lucheng Textile Investment Co., Ltd. non-state-owned 15.21% 140,353,583 0 legal person Foreign legal Tailun (Thailand) Textile Co., Ltd. 12.82% 118,232,400 118,232,400 person Foreign legal Hong Kong Securities Clearing Co. Ltd 3.32% 30,593,555 0 person State-owned legal Central Huijin Assets Management Co., Ltd. 2.20% 20,315,300 0 person 2 Lu Thai Textile Co., Ltd. Interim Report 2018 (Summary) Foreign legal T.Rowe Price Intl Discovery Fund 2.16% 19,948,219 0 person Domestic China Securities Finance Corporation Limited non-state-owned 1.70% 15,679,091 0 legal person Foreign legal Hong Kong Monetary Authority-self-owned funds 1.25% 11,540,893 0 person National Social Security Fund Portfolio 103 Other 0.87% 7,999,947 0 Hua’an New Silk Road Theme Equity Securities Other 0.83% 7,650,000 0 Investment Fund Bosera Selected Mixed Securities Investment Other 0.81% 7,500,000 0 Fund Zibo Lucheng Textile Investment Co., Ltd. is the largest shareholder and the actual controller of the Company. Tailun (Thailand) Textile Co., Ltd. is the second largest Connected or acting-in-concert parties among shareholders above shareholder and the foreign sponsor of the Company. All the other shareholders are holding tradable A-shares or B-shares. And it is unknown whether there is any related party or acting-in-concert party among them. Shareholders conducting margin trading (if any) N/A 4. Change of Controlling Shareholder or Actual Controller in Reporting Period Change of the controlling shareholder in the Reporting Period: □ Applicable √ Not applicable The controlling shareholder remained the same in the Reporting Period. Change of the actual controller in the Reporting Period: □ Applicable √ Not applicable The actual controller remained the same in the Reporting Period. 5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them □ Applicable √ Not applicable No preferred shareholders in the Reporting Period. 6. Corporate bonds Does the Company have any corporate bonds publicly offered on the stock exchange, which were undue before the date of this Report’s approval or were due but could not be redeemed in full? No. Part III Operating Performance Discussion and Analysis 1. Business Overview of Reporting Period Is the Company subject to any disclosure requirements for special industries? No. For the Reporting Period, the Company recorded operating revenue of RMB3,281 million, an operating profit of RMB452 million, a net profit attributable to the listed company’s shareholders of RMB377 million and a net profit before exceptional items of RMB367 3 Lu Thai Textile Co., Ltd. Interim Report 2018 (Summary) million, up 9.47%, -7.99%, -4.50% and -5.22% respectively from the same period of last year. No changes have occurred to the core businesses, the main profit sources and structure of the Company in this period. During the Reporting Period, the Company continued to steadily promote “Improving Quality and Efficiency” and “Comprehensive Internationalization”, maintaining the sound, stable and sustained development trend; made smooth progress in overseas projects and basically achieved the design expectation; initiated the establishment of the new retail platform Luthai1987 based on the S2B2C mode and opened up online and offline OMO mode, enabling Luthai to better serve end customers together with its partners. The Company deepened its relationship with customers through proactive measures such as adjustment of product structure, integration of supply chains, design and development connection, brand cooperation, overseas expansion and e-commerce platforms and facing new characteristics and new demands of the market, kept improving product design concept and innovating service mode to satisfy customers’ demands and market trend. During the Reporting Period, the Company was named as “2018 Top Twenty Enterprise of China Dyeing and Printing Industry” by CDPA, won the title of “China Quality Award for Textile Industry” granted by CNTAC, was ranked among the top 50 in the field of textile, garments, shoes and hats by China Council for Brand Development, was named as “2017 Top Ten Enterprise for Key Business Revenue in Yarn-Dyed Fabric Industry” and “2017 Top 100 Enterprise for Key Business Revenue in Cotton Textile Industry” by China Cotton Textile Association and as “Demonstration Enterprise of Social Responsibilities in Shandong”. During the Reporting Period, the Company intensified the building and training of its team of design talents and kept deepening the early-stage communication and cooperation with strategic customers in the design of fabrics and shirts, gaining favorable market response. The Company won the Award of Best Market Application for its works Modest Luxury Distinctive Flowers in 2018 China International Fabrics Design Competition and appraising of 2019 Spring-Summer China Fashionable Fabrics. Luthai Textile won the title of “Fifth China Advanced Unit for Development of Textile Fabric Designers”. During the Reporting Period, the Company continued to persist in R&D investments, making new achievements in two national key R&D projects of the 13th Five-Year Plan as well as in the application of new materials, research of new fabrics, key technologies of new product development and research of equipment upgrading. As of the reporting period, the Company had been granted a total of 301 licensing patents, and 1 software copyright; and hosted or participated in the formulation of 40 national and industrial standards. At the current stage, Lu Thai, with natural fabric as its flagship, multi-component functional fiber fabric as its spearhead, wash-and-wear non-ironing technology as its core competency, the latest consumption trend as its guidance and internationalized industrial manufacturing as its basis, is sparing every effort to attain a global integrated development, so as to ensure its leading position in the yarn-dyed shirt fabric sector. 2. Matters Related to Financial Reporting (1) Changes in Accounting Policies, Accounting Estimates or Measurement Methods Compared to Last Accounting Period □ Applicable √ Not applicable No such changes. (2) Retrospective Restatements due to Correction of Material Accounting Errors in Reporting Period □ Applicable √ Not applicable No such cases. 4 Lu Thai Textile Co., Ltd. Interim Report 2018 (Summary) (3) Changes in Scope of Consolidated Financial Statements Compared to Last Accounting Period □ Applicable √ Not applicable No such changes. Chairman of the Board: Liu Zibin Lu Thai Textile Co., Ltd. 22 August 2018 5