Lu Thai Textile Co., Ltd. Interim Report 2019 (Summary) Stock Code: 000726, 200726 Stock Name: LTTC, LTTC-B Announcement No. 2019-053 LU THAI TEXTILE CO., LTD. INTERIM REPORT 2019 (SUMMARY) Part I Important Notes This Summary is based on the full text of the 2019 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”). All the directors of the Company except for the following attended in person the Board meeting for the review of this Report and its summary. Reason for not attending the Proxy entrusted to attend the Name Office title meeting in person meeting Fujiwara Hidetoshi Director For reason of other work Qin Guiling 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. 1 Lu Thai Textile Co., Ltd. Interim Report 2019 (Summary) Part II Key Corporate Information 1. Stock Profile Stock name LTTC, LTTC-B Stock code 000726, 200726 Stock exchange for stock listing Shenzhen Stock Exchange Contact information Board Secretary Securities Representative Name Zhang Keming 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. 0533-5277008 0533-5285166 E-mail address zhangkeming@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 Accounting policy changes resulted in the retrospective restatements in the following table. H1 2018 Change (%) H1 2019 Before Restated Restated Operating revenue (RM B) 3,185,448,344.01 3,281,014,155.43 3,280,407,775.82 -2.89% Net profit attributable to the listed 411,446,216.59 377,355,959.02 377,355,959.02 9.03% company’s shareholders (RM B) Net profit attributable to the listed company’s shareholders before 376,816,535.93 366,948,339.88 366,432,917.21 2.83% exceptional gains and losses (RM B) Net cash generated from/used in operating 119,717,062.57 697,784,710.77 697,784,710.77 -82.84% activities (RM B) Basic earnings per share (RM B/share) 0.48 0.41 0.41 17.07% Diluted earnings per share (RM B/share) 0.48 0.41 0.41 17.07% Weighted average return on equity (%) 5.70% 5.13% 5.13% 0.57% 31 December 2018 Change (%) 30 June 2019 Before Restated Restated Total assets (RMB) 11,202,182,466.95 10,537,759,811.84 10,537,759,811.84 6.31% Equity attributable to the listed company’s 7,135,598,465.75 7,146,548,467.86 7,146,548,467.86 -0.15% shareholders (RM B) 3. Shareholders and Their Holdings as at 30 June 2019 Unit: share Number of ordinary shareholders 55,045 Number of preferred shareholders with resumed voting rights (if any) 0 Top 10 shareholders Shares in Shareholding Number of Restricted pledge or Name of shareholder Nature of shareholder frozen percentage shares shares Status Shares Domestic Zibo Lucheng Textile Investment Co., Ltd. non-state-owned legal 16.36% 140,353,583 0 person Tailun (Thailand) Textile Co., Ltd. Foreign legal person 13.78% 118,232,400 118,232,4 2 Lu Thai Textile Co., Ltd. Interim Report 2019 (Summary) 00 Hong Kong Securities Clearing Co. Ltd Foreign legal person 3.03% 25,985,611 0 State-owned legal Central Huijin Assets M anagement Co., Ltd. 2.37% 20,315,300 0 person T.Rowe Price Intl Discovery Fund Foreign legal person 2.32% 19,948,219 0 Domestic China Securities Finance Corporation Limited non-state-owned legal 2.13% 18,313,391 0 person Hong Kong M onetary Authority -self-owned Foreign legal person 2.04% 17,487,884 0 funds National Social Security Fund Portfolio 103 Other 1.34% 11,499,947 0 National Social Security Fund Portfolio 413 Other 0.93% 7,980,051 0 RBC Emerging M arkets Small Cap Equity Fund Foreign legal person 0.72% 6,181,462 0 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 Related or acting-in-concert parties among the 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 involved in securities margin trading (if any) N/A 4. Change of the Controlling Shareholder or the Actual Controller in the 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 outstanding 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 the Reporting Period Is the Company subject to any industry -specific disclosure requirements? No. 3 Lu Thai Textile Co., Ltd. Interim Report 2019 (Summary) For the Reporting Period, the Company recorded operating revenue of RM B3,185 million, an operating profit of RM B495 million, a net profit attributable to the listed company’s shareholders of RM B411 million and a net profit before exceptional gains and loss es of RM B377 million, down 2.89% and up 9.33%, 9.03% and 2.83% respectively from the same period of last year. No changes have occurred to the principal activities, 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 steady progress in its overseas expansion programme and basically achieved the design expectation; and enhanced market survey for further communication with customers and improved the “manufacturing + design” service ability, which accelerated market extension efficiency. 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 and e-commerce platforms and facing new characteristics and new demands of the market, kept improving product design concept and innovating service mode to meet market demand and keep up with the development trends. During the Reporting Period, the Company was honored as “Top 100 Garment M akers 2018” by the China National Garment Association, “Top 100 Private Enterprises with the Highest Brand Value of Shandong Province” and “High -End Brand Builders in the M anufacturing Sector of Shandong Province” by the Shandong Council for Brand Development. During the Reporting Period, the Company continued to persist in R&D investments, making new achievements in the application of new materials, research of new fabrics, key technologies of new product development and research of equipment upgrading by means of organizing science and technology lectures as well as cooperating with prominent domestic colleges. Two key R&D projects included in China’s 13th Five-Year Plan, which are conducted by the Company, have passed the interim examination. As of the end of the Reporting Period, the Company had 379 granted patents and 3 software copyrights; as well as had hosted or participated in the formulation of 50 national and industrial standards. During the Reporting Period, the design work of products targeting western and female consumers, etc. was completed for the autumn and winter of 2020, which consist of 71 series under eight themes. The relevant promotion activities, samples and specific design are underway together with the business department. 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 to Accounting Policies, Accounting Estimates or Measurement Methods Compared to the Last Accounting Period □ Applicable √ Not applicable No such changes. 4 Lu Thai Textile Co., Ltd. Interim Report 2019 (Summary) (2) Retrospective Restatements due to the Correction of Material Accounting Errors in the Reporting Period □ Applicable √ Not applicable No such cases. (3) Changes to the Scope of Consolidated Financial Statements Compared to the Last Accounting Period √ Applicable □ Not applicable Shandong Lulian New M aterials Co., Ltd. (hereinafter refer to as “Lulian New M aterials”) and Lu Thai (Tan Chau) Textile Co., Ltd. (hereinafter refer to as “Lu Thai Tan Chau”) were incorporated as a subsidiary and a sub-subsidiary of the Company respectively during the Reporting Period. Chairman of the Board: Liu Zibin Lu Thai Textile Co., Ltd. 3 August 2019 5