Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) Stock Code: 000726, 200726 Stock Name: LTTC, LTTC-B Announcement No. 2020-073 LU THAI TEXTILE CO., LTD. THIRD QUARTERLY REPORT 2020 (SUMMARY) 1 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) Part I Important Notes 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 that the contents of this Report and its summary are true, accurate and complete and free of any misrepresentations, misleading statements or material omissions, and collectively and individually accept legal responsibility for such contents. All the Company’s directors have attended the Board meeting for the review of this Report and its summary. Liu Zibin, the Company’s legal representative, Zhang Hongmei, the Company’s Chief Accountant, and Zhang Keming, the Company’s Financial Manager hereby guarantee that the financial statements carried in this Report are truthful, accurate and complete. 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. 2 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) Part II Key Corporate Information I Key Financial Information Indicate by tick mark whether there is any retrospectively restated datum in the table below. □ Yes √ No 30 September 2020 31 December 2019 Change (%) Total assets (RMB) 11,886,564,733.71 11,885,431,553.08 0.01% Equity attributable to the listed company’s 7,743,047,836.86 7,697,135,324.92 0.60% shareholders (RMB) Q3 2020 YoY change (%) Q1-Q3 2020 YoY change (%) Operating revenue (RMB) 1,083,514,157.78 -33.37% 3,370,258,238.57 -29.96% Net profit attributable to the listed -48,455,060.39 -127.46% 95,664,518.83 -83.73% company’s shareholders (RMB) Net profit attributable to the listed company’s shareholders before exceptional -59,285,564.88 -134.38% 48,820,028.29 -91.11% gains and losses (RMB) Net cash generated from/used in operating 219,056,724.96 -39.50% 428,448,990.65 -11.07% activities (RMB) Basic earnings per share (RMB/share) -0.06 -130.00% 0.11 -83.82% Diluted earnings per share (RMB/share) -0.04 -120.00% 0.12 -82.35% Weighted average return on equity (%) -0.61% -3.05% 1.24% -6.90% Exceptional gains and losses: √ Applicable □ Not applicable Unit: RMB Item Q1-Q3 2020 Note Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) -3,009,110.39 Government grants through profit or loss (exclusive of government grants given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s 52,678,767.97 uniform standards) Gain or loss on fair-value changes on held-for-trading and derivative financial assets and liabilities & income from disposal of held-for-trading and derivative financial assets and 10,824,073.85 liabilities and other debt investments (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) Non-operating income and expense other than the above 999,157.33 Less: Income tax effects 10,785,310.28 3 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) Non-controlling interests effects (net of tax) 3,863,087.94 Total 46,844,490.54 -- 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 Public—Exceptional Gain/Loss Items: □ Applicable √ Not applicable No such cases for the Reporting Period. II Total Number of Shareholders and Holdings of Top 10 of Them as at the End of the Reporting Period 1. Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders Unit: share Number of preference shareholders with resumed Number of ordinary shareholders 60,175 0 voting rights (if any) Top 10 shareholders Shares in pledge Shareholdi Nature of Total shares Restricted or frozen Name of shareholder ng shareholder held shares held Share percentage Status s Domestic Zibo Lucheng Textile Investment Co., Ltd. non-state-owned 16.36% 140,353,583 corporation Foreign Tailun (Thailand) Textile Co., Ltd. 13.78% 118,232,400 118,232,400 corporation State-owned Central Huijin Assets Management Co., Ltd. 2.00% 20,315,300 corporation Domestic China Securities Finance Corporation Limited non-state-owned 2.00% 18,313,391 corporation Foreign Hong Kong Securities Clearing Co. Ltd 1.00% 10,492,136 corporation Domestic National Social Security Fund Portfolio 413 non-state-owned 1.00% 9,360,051 corporation Foreign T.ROWE PRICE INTL DISCOVERY FUND 1.00% 8,403,112 corporation Zhang Ying Domestic 1.00% 6,112,700 4 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) individual Domestic ASSICURAZIONI GENERALI-DIVIDEND 2 non-state-owned 1.00% 5,385,759 corporation Domestic Fullgoal China Securities Dividend Index non-state-owned 1.00% 5,270,243 Strengthen Securities Investment Fund corporation Top 10 unrestricted shareholders Unrestricted ordinary shares Shares by class Name of shareholder held Class Shares RMB-denominate Zibo Lucheng Textile Investment Co., Ltd. 140,353,583 d ordinary share RMB-denominate Central Huijin Assets Management Co., Ltd. 20,315,300 d ordinary share RMB-denominate China Securities Finance Corporation Limited 18,313,391 d ordinary share Domestically Hong Kong Securities Clearing Co. Ltd 10,492,136 listed foreign share RMB-denominate National Social Security Fund Portfolio 413 9,360,051 d ordinary share Domestically T.ROWE PRICE INTL DISCOVERY FUND 8,403,112 listed foreign share RMB-denominate Zhang Ying 6,112,700 d ordinary share RMB-denominate ASSICURAZIONI GENERALI-DIVIDEND 2 5,385,759 d ordinary share Fullgoal China Securities Dividend Index Strengthen Securities RMB-denominate 5,270,243 Investment Fund d ordinary share Lombarda China China Securities Financial Assets RMB-denominate 5,235,900 Management Plan d ordinary share Zibo Lucheng Textile Investment Co., Ltd. is the largest shareholder and the actual controller of the Company. Tailun Related or acting-in-concert parties among the shareholders (Thailand) Textile Co., Ltd. is the shareholder holding restricted above B-shares in 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. Top 10 shareholders engaged in securities margin trading (if Naught 5 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) any) Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the Reporting Period. □ Yes √ No No such cases in the Reporting Period. 2. Number of Preference Shareholders and Shareholdings of Top 10 of Them □ Applicable √ Not applicable 6 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) Part III Significant Events I Changes in Key Financial Statement Line Items and Explanation of why √ Applicable □ Not applicable Item Change Reason for change Monetary assets 44.07% Reception of funds from issuing convertible corporate bonds in the Reporting Period Held-for-trading financial assets 378.74% Increase in structured deposits Receivables financing 121.17% Increase in bank’s acceptance bills receivable at the end of the Reporting Period Other receivables 74.69% Dividends receivable added in the Reporting Period Other current assets 31.64% Increase in excess VAT paid at the end of the Reporting Period Long-term equity investments 35.32% Increase in investment (Ningbo Haoying) in the Reporting Period Other non-current financial -50.20% Decrease in other non-current financial assets due to the external transfer of assets shares in Remegen in the Reporting Period Investment property -51.00% Decrease in investment property Other non-current assets -88.29% Arrival of equipment in the Current Period prepaid at the beginning of the Reporting Period Short-term borrowings -52.01% Repayment of short-term borrowings in the Reporting Period Notes payable -100.00% Payment of beginning bank’s acceptance bills at maturity Advances from customers -100.00% Adjustment of advances from customers into contract liabilities as required by the new accounting standards governing revenue Taxes and levies payable 39.87% Increase in enterprise income tax payable Other payables -79.29% Decrease in other payables Contract liabilities 100.00% Adjustment of advances from customers into contract liabilities as required by the new accounting standards governing revenue Current portion of non-current -41.16% Payment of current portion of long-term borrowings at maturity liabilities Long-term borrowings 571.01% Increase in long-term borrowings Bonds payable 100.00% Issue of convertible corporate bonds in the Reporting Period Long-term employee benefits -48.39% Decrease in employee benefits payable over one year payable Other non-current liabilities -100.00% Decrease in other non-current liabilities Other equity instruments 100.00% Increase in equity recognized due to issuing convertible corporate bonds in the Reporting Period Item Change Reason for change Other income 45.73% Increase in government grants Return on investment 781.65% Investment income from disposal of held-for-trading financial assets in the 7 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) Reporting Period Gain on changes in fair value -2640.00% Recognizing the reversal of disposed held-for-trading financial assets as gain on changes in fair value in the Reporting Period Credit impairment loss -241.30% Decrease in expected credit impairment loss due to the decline of the closing balance of accounts receivable Asset impairment loss 547.77% Increase in inventory impairment loss in the Reporting Period Asset disposal income -336.79% Decrease in income from disposal of fixed assets Non-operating expense -65.64% Decrease of donation expense in the Reporting Period Income tax expense -72.85% Decrease in income tax payable caused by decline of gross profit in the Reporting Period Net cash generated from/used in 172.13% Increase in cash received from borrowings received due to issue of financing activities convertible corporate bonds in the Reporting Period Net increase in cash and cash 372.48% Increase in cash and cash equivalents, end of the period, due to issue of equivalents convertible corporate bonds in the Reporting Period II Progress, Influence and Solutions with regard to Significant Events √ Applicable □ Not applicable On 13 August 2020, the Company signed the Transfer Agreement of Equity in Xinjiang Luthai Fengshou Cotton Industry Co., Ltd. with Mr. Li Jingquan to sell all equity in Xinjiang Luthai Fengshou Cotton Industry Co., Ltd. (hereinafter referred to as “Xinjiang Luthai”) held by it. Upon the transfer, the Company will no longer hold the equity of Xinjiang Luthai. As of the end of August 2020, the acquiring party had paid the first and second transfer amount and completed the registration changing procedures. Thus, Xinjiang Luthai will no longer be incorporated into the consolidated financial statements of the Company since September 2020. Overview of significant events Disclosure date Announcement index On 13 August 2020, the Company signed the Transfer Announcement (No.: 2020-058) on 14 August 2020 Agreement of Equity in Xinjiang Luthai Fengshou www.cninfo.com.cn Cotton Industry Co., Ltd. with Mr. Li Jingquan to sell all equity in Xinjiang Luthai Fengshou Cotton Industry Co., Ltd. (hereinafter referred to as “Xinjiang Luthai”) held by it. Upon the transfer, the Company will no Announcement (No.: 2020-060) on 15 August 2020 longer hold the equity of Xinjiang Luthai. The said www.cninfo.com.cn issue has been reviewed and approved by the 16th Meeting of the 9th Board of Directors and related announcements have been disclosed. Progress of any share repurchase: □ Applicable √ Not applicable Progress of any reduction of the repurchased shares through centralized bidding: □ Applicable √ Not applicable 8 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) III Commitments that the Company’s Actual Controller, Shareholders, Related Parties, Acquirers, the Company Itself or Other Relevant Parties, Failed to Fulfill on Time during the Reporting Period √ Applicable □ Not applicable Date of Term of Type of Fulfillme Commitment Promisor Details of commitment commitme commitme commitment nt nt making nt Commitments made in share reform Commitments made in acquisition documents or shareholding alteration documents Commitments made in time of asset restructuring 1. Not intervene the Company’s operation and management beyond the authority and not occupy the Company’s interests. 2. From the issuance date of this commitment to the completion of the implementation of the Company's public offering of A-share convertible corporate bonds, if the CSRC makes other new regulatory provisions on remedial Dilution of at measures for returns and the commitment, sight returns and the above commitment fails to meet Controlling on public From 23 Commitments made in the requirements of the CSRC, the shareholder, offering 23 May May 2019 time of IPO or company / I promise to issue On-going actual A-share 2019 to 8 April refinancing supplementary commitment then in controller convertible 2026 accordance with the latest regulations of corporate CSRC. 3. Commitment is made to fulfill bonds the Company's relevant remedial measures for returns and any commitment made herein by the company / me. If the company / I violate(s) such commitment and cause(s) losses to the Company or investors, the company / I will bear the compensation responsibility to the Company or investors in accordance with the law. 9 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) 1. Commitment is made not to transfer benefits to other units or individuals free of charge or under unfair conditions, and no other ways damaging the interests of the Company will be taken. 2. I will strictly abide by the budget management of the Company, and accept the strict supervision and management of the Company to avoid waste or excessive consumption. Any position-related consumption behaviors of myself will occur within the scope necessary for the performance of my duties. 3. Commitment is made not to use the Company's assets to engage in investment and consumption activities unrelated to the performance of duties. 4. Commitment is made that the Dilution of at remuneration system developed by the sight returns Board of Directors or the Remuneration Directors on public Committee is linked to the From 23 and senior offering implementation of the Company's 23 May May 2019 management On-going A-share remedial measures for returns. 5. 2019 to 8 April of the convertible Commitment is made that the conditions 2026 Company corporate for exercising the Equity Incentive Plan to bonds be issued in the future will be linked to the implementation of the Company's remedial measures for returns. 6. From the issuance date of this commitment to the completion of the implementation of the Company's public offering of A-share convertible corporate bonds, if the CSRC makes other new regulatory provisions on remedial measures for returns and the commitment, and the above commitment fails to meet the requirements of the CSRC, I promise to issue supplementary commitment then in accordance with the latest regulations of CSRC. 7. Commitment is made to fulfill the Company's relevant remedial measures for returns and any commitment made herein by me. If I violate such commitment and causes losses to the 10 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) Company or investors, I will bear the compensation responsibility to the Company or investors in accordance with the law. Equity incentive commitments Other commitments made to minority interests Executed on time or not Yes IV Financial Investments 1. Securities Investments □ Applicable √ Not applicable No such cases in the Reporting Period. 2. Investments in Derivative Financial Instruments √ Applicable □ Not applicable Unit: RMB’0,000 Proporti on of ending Rela Rela Begin investm Actual tions ted- Impair Type ning Purchased in Ending ent gain/los hip part Initial Sold in the ment Oper of Starting Ending invest the investm amount s in the with y investment Reporting provisi ator derivat date date ment Reporting ent in the Reporti the trans amount Period on (if ive amoun Period amount Compan ng Com actio any) t y’s Period pany n ending net assets Forwa Com rd Non merc exchan 21 January 31 March -rela No 39,398.69 0 39,398.69 39,398.69 0 0 228.05 ial ge 2020 2020 ted bank settle ment Com Non Foreig 19 March 25 No 68,951.65 0 68,951.65 41,951.65 0 27,000 3.31% 598.57 merc -rela n 2020 December 11 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) ial ted exchan 2020 bank ge option Forwa Com rd Non 17 merc exchan 9 March -rela No 15,471.23 September 0 15,471.23 15,471.23 0 0 -143.94 ial ge 2020 ted 2020 bank transac tions Total 123,821.57 -- -- 0 123,821.57 96,821.57 27,000 3.31% 682.68 Funding source Self-funded Legal matters involved N/A (if applicable) Disclosure date of the 30 April 2019 announcement on the Board’s approval of investments in 30 April 2020 derivative financial instruments (if any) Disclosure date of the announcement on the general meeting’s approval of investments in derivative financial instruments (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 Risk analysis and such as market risk, liquidity risk and credit risk, operation risk and risk of laws and regulation. control measures in 1. Market risk: when the international and domestic economic situations change, the corresponding respect of derivative changes in exchange rates and interest rates may have an adverse impact on the financial derivatives investments held in the transactions of the Company. Precautionary measures to be taken include: the Company chooses Reporting Period risk-controlled financial derivative tools with simple structure and good liquidity to carry out the hedging (including but not business, strictly controls the scale of financial derivatives trading by staged operations, and adjusts the limited to market risk, strategy according to market changes in a timely manner. liquidity risk, credit risk, 2. Liquidity risk and credit risk: a credit risk arising from failure of the contractually due Company or operational risk, legal counterparty in performing the contract due to liquidity or factors other than liquidity. Precautionary risk, etc.) measures to be taken include: the Company determines the upper limit of derivatives transaction amounts according to production and operation scale as well as foreign exchange income, and conducts operations by stage according to the budget of future collections and disbursement. The derivative trades are free of guarantee deposit and can still be guaranteed in performance after the contract expires by means of 12 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) extension and balance settlement etc. to prevent the Company from credit damages due to lack of liquidity. The Company selects financial institutions with strong capability and good reputation as a counterparty and signs standard derivative trading contracts to strictly control credit risk of the counterparty. 3. Operation risk: The derivatives had high specialty and complexity, so imperfect internal operation procedures, staffs and external events would make the Company to undertake risks during the transaction. Risk control measures: The Company promulgated strict authorization and approval system and perfect regulatory mechanism, fixed the operation procedures and approval procedures system to conduct derivative products transaction, implemented strict authorization and post checks and balances system, meanwhile, it improved the overall quality of relevant personnel through strengthening the professional ethics education and business training for them. Besides, it established the System of Reporting the Abnormal Situation Timely so as to ensure to lower the operation risks to the maximum. 4. Risk of laws and regulation: The Company conducted derivatives products transaction in strict accordance with relevant laws and rules. If there were no standard operation procedures and strict approval procedures, it was easy to cause compliant and regulatory risks existing in the validity and feasibility of contract, commitments and other legal documents signed. Risk control 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 transaction business. The Company conducted derivative transaction business 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 Transaction of Lu Thai Textile Co., Ltd., and the Proposal on the Plan of Lu Thai Textile Co., Ltd. for Derivative Transactions approved at the 26th Meeting of the 8th Board of Directors on 29 April 2019 and at the 13th Meeting of the 9th Supervisory Committee held on 28 April 2020, and performed relevant information disclosure responsibilities. Changes in market 1. As of 30 September 2020, the Company held 6 undue financial derivatives contracts, totaling US$45 prices or fair value of million, all of which were forward exchange option portfolio. derivative investments 2. In January-September 2020, the amount of maturing financial derivatives of the Company amounted to in the Reporting Period US$139.6616 million which were executed as per the contracts in full and generated gains of RMB6.8268 (fair value analysis million. Among which, the amount of delivered settlements of forward exchange was US$56.5 million, should include which generated gains of RMB2.2805; the amount of delivered foreign exchange options was US$61 measurement method million, which generated gains of RMB5.9857 million; the amount of delivered foreign exchange and related assumptions transactions was US$22.1616 million, which generated gains of RMB-1.4394 million. and parameters) Significant changes in accounting policies and specific accounting principles adopted for No significant changes derivative investments in the Reporting Period compared to the last 13 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) reporting period The Company’s independent directors Zhou Zhiji, Bi Xiuli, Pan Ailing, Wang Xinyu and Qu Dongmei concerning conducting derivatives business, have issued the following professional advice: We are of the Opinion of independent opinion that it will strengthen the Company’s competitiveness to use derivative transactions with focus on directors on derivative forward settlement and purchase as an effective tool to avoid foreign exchange risks, to strengthen the investments and risk relevant internal control and to carry out the loss and risk prevention measures so as to improve the control operation and management. In conducting derivative transactions with focus on forward settlement and purchase, the Company follows a legal approval procedure, has sound relevant institutions and keeps the risks relatively controllable. No harm has been done to the interests of the Company’s shareholders. V Progress of Projects Financed with Raised Funds √ Applicable □ Not applicable Approved by the CSRC in the Reply on Approving the Public Issue of Convertible Corporate Bonds by Lu Thai Textile Co., Ltd. (ZJXK[2020]No.299), the Company publicly offered the convertible corporate bonds with the total par value of RMB1.4 billion on 9 April 2020. The net amount of funds raised through this public offering after deducting related issue expenses is RMB1,385,460,000. As for projects financed with the raised funds, apart from the project of supplementing the current capital, both the project of Functional Fabric Intelligent Ecological Park (I) and the project of High-grade Printing and Dyeing Fabric Production Line are carried out as planned. VI 2020 Annual Operating Performance Forecast Warning of a forecast loss on or a forecast significant year-on-year change in the 2020 annual net profit, as well as explanation of why: √ Applicable □ Not applicable Performance forecast: Decrease in net profit Type of forecast data: Interval data January-Dece January-December 2020 Change (%) mber 2019 Predicted annual net profit 3,500 -- 5,000 98,932.67 Down 96.46% -- 94.95% (RMB’0,000) Basic earnings per share 0.04 -- 0.06 1.11 Down 96.40% -- 96.59% (RMB /share) During the Reporting Period, influenced by the COVID-19 epidemic in and outside China, orders of Note the Company decreased and the sales volume of the Company’s products declined, which caused a remarkable YoY decline in the net profit of the Company for 2020. VII Significant Contracts Arising from the Company’s Ordinary Course of Business □ Applicable √ Not applicable 14 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) VIII Cash Entrusted for Wealth Management √ Applicable □ Not applicable Unit: RMB’0,000 Unrecovered overdue Type Funding source Amount Undue amount amount Trust financial products Self-funded 5,000 0 0 Bank’s wealth Idle raised funds 30,000 30,000 0 management product Bank’s wealth Idle raised funds 8,000 8,000 0 management product Total 43,000 38,000 0 High-risk wealth management transactions with a significant single amount, or with low security, low liquidity or no principal protection: √ Applicable □ Not applicable Unit: RMB’0,000 Recov Thro Actual ery of ugh Type Refere Any Invest Expect gain/lo the Impair pres of Way nce plan Summary and Type Fundi ment ed ss in gain/lo ment cribe wealth Princi Start End of annual for index to more Trustee of ng with return the ss in allowa d manag pal date date payba ized further information (if trustee source princi (if Report the nce (if proc ement ck rate of transac any) pal any) ing Report any) edur product return tions Period ing es or Period not Payba Announcemen ck of t No. No princi Recov 2020-059 Trust 7 9 Avic Trust Fixed-i Self-fu fixed pal ery on dated 14 compa 5,000 March March 8.00% 400 402.19 0 Yes No Co., Ltd. ncome nded destin with schedu August 2020 ny 2019 2020 ation annual le on interes www.cninfo.c t om.cn Payba Announcemen ck of t No. 25 princi Recov Agricultur Princip Bank 2020-051 Raised 1 July Septe pal ery on al Bank of Bank al-prot 10,000 financi 3.50% 81.51 81.51 0 Yes No dated 23 May fund 2020 mber with schedu China ected ng 2020 on 2020 interes le www.cninfo.c t upon om.cn maturi 15 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) ty Payba ck of Announcemen princi t No. Agricultur Princip 8 Bank pal 2020-051 Raised 1 July al Bank of Bank al-prot 10,000 Januar financi with 3.50% 183.15 - 0 Yes No dated 23 May fund 2020 China ected y 2021 ng interes 2020 on t upon www.cninfo.c maturi om.cn ty Payba ck of Announcemen princi t No. 11 China Princip Bank pal 2020-051 Raised 3 July Octob Constructi Bank al-prot 5,000 financi with 2.05% 28.09 - 0 Yes No dated 23 May fund 2020 er on Bank ected ng interes 2020 on 2020 t upon www.cninfo.c maturi om.cn ty Payba ck of Announcemen princi t No. 12 Princip 13 Bank pal 2020-051 Qishang Raised Nove Bank al-prot 5,000 Augus financi with 3.50% 43.63 - 0 Yes No dated 23 May Bank fund mber ected t 2020 ng interes 2020 on 2020 t upon www.cninfo.c maturi om.cn ty Payba ck of Announcemen princi t No. 28 25 Agricultur Princip Bank pal 2020-051 Raised Septe Dece al Bank of Bank al-prot 10,000 financi with 3.50% 83.42 - 0 Yes No dated 23 May fund mber mber China ected ng interes 2020 on 2020 2020 t upon www.cninfo.c maturi om.cn ty Payba Announcemen 2 2 ck of t No. Princip Bank Qishang Self-fu Septe Dece princi 2020-059 Bank al-prot 4,000 financi 3.50% 34.9 - 0 Yes No Bank nded mber mber pal dated 14 ected ng 2020 2020 with August 2020 interes on 16 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) t upon www.cninfo.c maturi om.cn ty Payba Announcemen ck of t No. princi 2 2 2020-059 Princip Bank pal Qishang Self-fu Septe Dece dated 14 Bank al-prot 1,000 financi with 3.50% 8.73 - 0 Yes No Bank nded mber mber August 2020 ected ng interes 2020 2020 on t upon www.cninfo.c maturi om.cn ty Payba Announcemen ck of t No. princi 2 2 2020-059 Princip Bank pal Qishang Self-fu Septe Dece dated 14 Bank al-prot 3,000 financi with 3.50% 26.18 - 0 Yes No Bank nded mber mber August 2020 ected ng interes 2020 2020 on t upon www.cninfo.c maturi om.cn ty Total 53,000 -- -- -- -- -- -- 889.61 483.7 -- 0 -- -- -- Wealth management transactions with possible impairments including an expectedly unrecoverable principal: □ Applicable √ Not applicable IX Irregularities in the Provision of Guarantees □ Applicable √ Not applicable No such cases in the Reporting Period. X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related Parties for Non-Operating Purposes □ Applicable √ Not applicable No such cases in the Reporting Period. XI Communications with the Investment Community such as Researches, Inquiries and Interviews Received during the Reporting Period √ Applicable □ Not applicable Major discussion Way of Type of Communicatio Index to main information Date Place content and communi communic n party communicated information 17 Lu Thai Textile Co., Ltd. Third Quarterly Report 2020 (Summary) cation ation party provided Refer to Announcement on Record Meeting Institutional Basic information of of Investor Relations Activities on 8 July 2020 room of the By phone Institution investors the Company 8 July 2020 dated 8 July 2020 on Company www.cninfo.com.cn Refer to Announcement on Record Meeting Institutional Basic information of of Investor Relations Activities on 31 August 2020 room of the By phone Institution investors the Company 31 August 2020 (I) dated 8 July Company 2020 on www.cninfo.com.cn Refer to Announcement on Record Meeting Institutional Basic information of of Investor Relations Activities on 31 August 2020 room of the By phone Institution investors the Company 31 August 2020 (II) dated 8 July Company 2020 on www.cninfo.com.cn Signature of the Chairman of the Board: Liu Zibin Lu Thai Textile Co., Ltd. 31 October 2020 18