Lu Thai Textile Co., Ltd. First Quarterly Report 2022 Stock Code: 000726, 200726 Stock Name: LTTC, LTTC-B Announcement No. 2022-023 Bond Code: 127016 Bond Name: LTTC Convertible Bonds LU THAI TEXTILE CO., LTD. FIRST QUARTERLY REPORT 2022 Lu Thai Textile Co., Ltd. (hereinafter referred to as the “Company”) and all the members of the Company’s Board of Directors hereby guarantee that the contents of this Report are true, accurate and complete and free of any misrepresentations, misleading statements or material omissions. Important Notes: 1. The Board of Directors, the Supervisory Committee as well as the directors, supervisors and senior management of the Company hereby guarantee that the contents of this Report 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. 2. The Company’s legal representative, chief accountant and financial manager hereby guarantee that the financial statements carried in this Report are true, accurate and complete. 3. Indicate whether the financial statements in this Report have been audited by an independent auditor. □Yes √ No I Key Financial Information (I) Key Accounting Data and Financial Indicators Indicate whether there is any retrospectively restated datum in the table below. □ Yes √ No Q1 2022 Q1 2021 YoY change (%) Operating revenue (RMB) 1,580,088,801.60 993,485,161.79 59.05% Net profit attributable to the listed 159,375,310.19 74,530,850.40 113.84% company’s shareholders (RMB) Net profit attributable to the listed company’s shareholders before 137,429,342.24 15,513,465.07 785.87% exceptional gains and losses (RMB) Net cash generated from/used in operating -15,953,827.96 -36,745,428.28 56.58% activities (RMB) 1 Lu Thai Textile Co., Ltd. First Quarterly Report 2022 Basic earnings per share (RMB/share) 0.18 0.09 100.00% Diluted earnings per share (RMB/share) 0.16 0.09 77.78% Weighted average return on equity (%) 1.97% 0.96% 1.01% 31 March 2022 31 December 2021 Change (%) Total assets (RMB) 12,843,807,393.13 12,987,221,271.63 -1.10% Equity attributable to the listed company’s 8,149,893,927.49 7,983,307,400.03 2.09% shareholders (RMB) (II) Exceptional Gains and Losses √ Applicable □ Not applicable Unit: RMB Item Q1 2022 Note Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) -607,776.95 Government grants through profit or loss (exclusive of government grants continuously given in the Company’s ordinary course of business at fixed quotas or amounts as per the 24,736,127.27 government’s policies and standards) Gain or loss on fair-value changes on held-for-trading financial assets and liabilities & income from disposal of held-for-trading financial assets and liabilities and available-for-sale financial 4,883,000.00 assets (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) Reverse of provision for impairment of accounts receivable individually conducting 175,622.16 impairment test Non-operating income and expense other than the above 340,757.97 Less: Income tax effects 7,180,157.74 Non-controlling interests effects (net of tax) 401,604.76 Total 21,945,967.95 -- Other items that meet the definition of exceptional gain/loss: □ Applicable √ Not applicable No such cases in the Reporting Period. Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item 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 in the Reporting Period. 2 Lu Thai Textile Co., Ltd. First Quarterly Report 2022 (III) Changes in Key Financial Information and Explanation of why √ Applicable □ Not applicable Item Change (%) Main reason for change Operating revenue 59.05 Net profit attributable to the listed 113.84 company’s shareholders YoY increase in sales volume due to the recovery of Net profit attributable to the listed 785.87 market demand company’s shareholders before exceptional gains and losses 56.58 YoY increase in net cash generated from selling Net cash generated from/used in goods and rendering labor services and used in operating activities purchasing goods and receiving labor services for Q1 2022 Basic earnings per share 100.00 Increase in Q1 2022 net profit Diluted earnings per share 77.78 II Shareholder Information (I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders Unit: share Number of ordinary shareholders Number of preferred shareholders with resumed 55,183 0 at the period-end voting rights at the period-end (if any) Top 10 shareholders Shareho Shares in pledge, Nature of lding Total shares Restricted marked or frozen Name of shareholder shareholder percenta held shares held Status Shares ge Domestic Zibo Lucheng Textile Investment non-state-owned 15.80% 140,353,583 Co., Ltd. corporation Tailun (Thailand) Textile Co., Foreign 13.31% 118,232,400 Ltd. corporation Central Huijin Assets State-owned 2.24% 19,884,100 3 Lu Thai Textile Co., Ltd. First Quarterly Report 2022 Management Co., Ltd. corporation Domestic National Social Security Fund non-state-owned 1.27% 11,250,051 Portfolio 413 legal person Zhong Ou China Securities Asset Other 0.59% 5,235,900 Management Plan Dacheng China Securities Asset Other 0.59% 5,235,900 Management Plan GF China Securities Asset Other 0.59% 5,235,900 Management Plan Yinhua China Securities Asset Other 0.59% 5,235,900 Management Plan Harvest China Securities Asset Other 0.58% 5,192,800 Management Plan ICBC Credit Suisse Innovation Power Stock Securities Other 0.56% 4,950,000 Investment Fund Top 10 unrestricted shareholders Shares by type Name of shareholder Unrestricted shares held Type Shares RMB-denominate Zibo Lucheng Textile Investment Co., Ltd. 140,353,583 140,353,583 d ordinary stock Domestically Tailun (Thailand) Textile Co., Ltd. 118,232,400 listed foreign 118,232,400 stock RMB-denominate Central Huijin Assets Management Co., Ltd. 19,884,100 19,884,100 d ordinary stock RMB-denominate National Social Security Fund Portfolio 413 11,250,051 11,250,051 d ordinary stock Zhong Ou China Securities Asset Management RMB-denominate 5,235,900 5,235,900 Plan d ordinary stock Dacheng China Securities Asset Management RMB-denominate 5,235,900 5,235,900 Plan d ordinary stock GF China Securities Asset Management Plan 5,235,900 RMB-denominate 5,235,900 4 Lu Thai Textile Co., Ltd. First Quarterly Report 2022 d ordinary stock Yinhua China Securities Asset Management RMB-denominate 5,235,900 5,235,900 Plan d ordinary stock Harvest China Securities Asset Management RMB-denominate 5,192,800 5,192,800 Plan d ordinary stock ICBC Credit Suisse Innovation Power Stock RMB-denominate 4,950,000 4,950,000 Securities Investment Fund d ordinary stock Zibo Lucheng Textile Investment Co., Ltd. is the largest shareholder of the Company and the actual controller. All of other shareholders are people Related or acting-in-concert parties among the holding public A share or B share and the Company is not able to confirm shareholders above whether there is associated relationship or concerted action among other shareholders. Top 10 shareholders engaged in securities Naught margin trading (if any) (II) Number of Preference Shareholders and Shareholdings of Top 10 of Them □ Applicable √ Not applicable III Other Significant Events √ Applicable □ Not applicable The Company convened the 30th Meeting of the 9th Board of Directors and the 18th Meeting of the 9th Supervisory Committee on 18 February 2022, on which the Proposal on Granting the Qualified Awardees the Reserved Restricted Shares of the Incentive Plan for 2021 was reviewed and approved. The Company completed the registration of granting 343 incentive objects 5,838,000 reserved restricted shares on 18 March 2022. For more details, please refer to relevant announcements disclosed on Cninfo (www.cninfo.com.cn) respectively on 19 February 2022 and 18 March 2022. IV Quarterly Financial Statements (I) Financial Statements 1. Consolidated Balance Sheet Prepared by Lu Thai Textile Co., Ltd. 31 March 2022 Unit: RMB Item 31 March 2022 31 December 2021 Current assets: 5 Lu Thai Textile Co., Ltd. First Quarterly Report 2022 Monetary assets 1,823,376,611.81 1,999,712,889.35 Settlement reserve Loans to other banks and financial institutions Held-for-trading financial assets 4,087,000.00 1,727,000.00 Derivative financial assets Notes receivable 152,820,042.64 227,740,247.89 Accounts receivable 665,112,339.09 647,277,198.51 Receivables financing 40,408,631.42 34,663,071.88 Prepayments 143,957,361.17 54,545,954.20 Other receivables 76,068,581.68 74,191,613.22 Including: Interest receivable Dividends receivable 47,025,975.44 47,025,975.44 Financial assets purchased under resale agreements Inventories 2,397,600,061.41 2,345,346,794.28 Contract assets Assets held for sale Current portion of non-current assets Other current assets 57,954,792.87 55,992,522.81 Total current assets 5,361,385,422.09 5,441,197,292.14 Non-current assets: Long-term receivables Long-term equity investments 154,483,170.07 169,443,106.66 Investments in other equity instruments Other non-current financial assets 190,052,000.00 190,052,000.00 Investment property 21,197,566.25 21,362,302.03 Fixed assets 5,485,743,715.69 5,561,601,374.44 Construction in progress 256,139,339.76 237,579,082.99 Right-of-use assets 252,534,420.77 257,019,286.15 6 Lu Thai Textile Co., Ltd. First Quarterly Report 2022 Intangible assets 360,396,442.92 363,130,978.14 Development costs Goodwill 20,563,803.29 20,563,803.29 Long-term prepaid expense 595,294.21 672,601.04 Deferred income tax assets 142,835,130.77 138,516,136.50 Other non-current assets 597,881,087.31 586,083,308.25 Total non-current assets 7,482,421,971.04 7,546,023,979.49 Total assets 12,843,807,393.13 12,987,221,271.63 Current liabilities: Short-term borrowings 880,115,845.68 1,011,034,138.32 Held-for-trading financial liabilities Derivative financial liabilities Notes payable 12,850,000.00 Accounts payable 286,083,478.05 335,401,371.30 Advances from customers Contract liabilities 155,506,797.75 204,967,348.96 Employee benefits payable 192,778,812.39 272,014,296.09 Taxes and levies payable 51,136,863.68 29,457,702.72 Other payables 122,907,735.63 97,200,565.31 Including: Interest payable Dividends payable 441,113.64 441,113.64 Current portion of non-current 72,357,208.27 8,877,404.52 liabilities Other current liabilities 76,015,396.96 120,434,721.81 Total current liabilities 1,849,752,138.41 2,079,387,549.03 Non-current liabilities: Insurance contract reserve Long-term borrowings 619,978,412.83 684,962,473.24 Bonds payable 1,407,796,380.76 1,395,480,652.71 Lease liabilities 118,131,732.04 121,357,658.41 7 Lu Thai Textile Co., Ltd. First Quarterly Report 2022 Long-term payables Long-term employee benefits 57,384,062.39 57,384,062.39 payable Provisions Deferred income 165,148,621.68 188,958,133.78 Deferred income tax liabilities 93,739,721.13 92,571,310.14 Other non-current liabilities Total non-current liabilities 2,462,178,930.83 2,540,714,290.67 Total liabilities 4,311,931,069.24 4,620,101,839.70 Owners’ equity: Share capital 888,180,207.00 882,341,295.00 Other equity instruments 71,384,248.89 71,384,656.84 Capital reserves 368,450,871.26 340,587,387.65 Less: Treasury stock 99,691,580.00 78,908,300.00 Other comprehensive income -42,131,238.76 -36,423,748.37 Specific reserve Surplus reserves 1,215,124,336.54 1,215,124,336.54 General reserve Retained earnings 5,748,577,082.56 5,589,201,772.37 Total equity attributable to owners of 8,149,893,927.49 7,983,307,400.03 the Company as the parent Non-controlling interests 381,982,396.40 383,812,031.90 Total owners’ equity 8,531,876,323.89 8,367,119,431.93 Total liabilities and owners’ equity 12,843,807,393.13 12,987,221,271.63 Legal representative: Liu Zibin The Company’s chief accountant: Zhang Hongmei The Company’s financial manager: Zhang Keming 2. Consolidated Income Statement Unit: RMB Item Q1 2022 Q1 2021 1. Revenues 1,580,088,801.60 993,485,161.79 8 Lu Thai Textile Co., Ltd. First Quarterly Report 2022 Including: Operating revenue 1,580,088,801.60 993,485,161.79 2. Costs and expenses 1,409,725,138.20 985,587,009.24 Including: Cost of sales 1,194,927,176.45 815,351,239.75 Taxes and levies 15,116,716.56 13,245,938.39 Selling expense 33,331,245.31 22,876,675.00 Administrative expense 92,775,354.83 70,211,600.57 Development costs 56,733,874.74 61,633,248.90 Finance costs 16,840,770.31 2,268,306.63 Including: Interest expense 18,139,093.23 12,971,587.55 Interest income 9,609,487.98 7,867,810.79 Add: Other income 24,599,534.70 12,470,516.19 Return on investment (“-” for loss) 886,584.91 7,111,896.31 Including: Share of profit or loss of joint ventures and -1,636,415.09 -2,671,359.52 associates Income from the derecognition of financial assets at amortized cost (“-” for loss) Exchange gain (“-” for loss) Net gain on exposure hedges (“-” for loss) Gain on changes in fair value (“-” for loss) 2,360,000.00 -10,376,010.56 Credit impairment loss (“-” for loss) 1,853,310.17 14,759,025.50 Asset impairment loss (“-” for loss) -12,447,808.03 -6,272,617.88 Asset disposal income (“-” for loss) -603,708.22 59,394,526.45 3. Operating profit (“-” for loss) 187,011,576.93 84,985,488.56 Add: Non-operating income 1,828,060.78 408,813.34 Less: Non-operating expense 1,354,778.97 2,288,330.70 4. Gross profit (“-” for loss) 187,484,858.74 83,105,971.20 Less: Income tax expense 29,939,184.05 14,524,286.78 5. Net profit (“-” for net loss) 157,545,674.69 68,581,684.42 5.1 By operating continuity 5.1.1 Net profit from continuing operations (“-” for net 157,545,674.69 68,581,684.42 loss) 9 Lu Thai Textile Co., Ltd. First Quarterly Report 2022 5.1.2 Net profit from discontinued operations (“-” for net loss) 5.2 By ownership 5.2.1 Net profit attributable to owners of the Company as 159,375,310.19 74,530,850.40 the parent 5.2.1 Net profit attributable to non-controlling interests -1,829,635.50 -5,949,165.98 6. Other comprehensive income, net of tax -5,707,490.39 12,399,955.74 Attributable to owners of the Company as the parent -5,707,490.39 12,399,955.74 6.1 Items that will not be reclassified to profit or loss 6.1.1 Changes caused by remeasurements on defined benefit schemes 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method 6.1.3 Changes in the fair value of investments in other equity instruments 6.1.4 Changes in the fair value arising from changes in own credit risk 6.1.5 Other 6.2 Items that will be reclassified to profit or loss -5,707,490.39 12,399,955.74 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method 6.2.2 Changes in the fair value of other debt investments 6.2.3 Other comprehensive income arising from the reclassification of financial assets 6.2.4 Credit impairment allowance for other debt investments 6.2.5 Reserve for cash flow hedges 6.2.6 Differences arising from the translation of -5,438,747.08 12,399,955.74 foreign currency-denominated financial statements 6.2.7 Other -268,743.31 Attributable to non-controlling interests 7. Total comprehensive income 151,838,184.30 80,981,640.16 Attributable to owners of the Company as the parent 153,667,819.80 86,930,806.14 10 Lu Thai Textile Co., Ltd. First Quarterly Report 2022 Attributable to non-controlling interests -1,829,635.50 -5,949,165.98 8. Earnings per share 8.1 Basic earnings per share 0.18 0.09 8.2 Diluted earnings per share 0.16 0.09 Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00. Legal representative: Liu Zibin The Company’s chief accountant: Zhang Hongmei The Company’s financial manager: Zhang Keming 3. Consolidated Cash Flow Statement Unit: RMB Item Q1 2022 Q1 2021 1. Cash flows from operating activities: Proceeds from sale of commodities and rendering of services 1,478,567,179.99 997,750,757.76 Tax and levy rebates 38,224,128.00 11,490,245.21 Cash generated from other operating activities 10,812,024.85 13,616,137.98 Subtotal of cash generated from operating activities 1,527,603,332.84 1,022,857,140.95 Payments for commodities and services 1,024,631,847.67 583,308,258.22 Cash paid to and for employees 452,625,366.04 389,050,366.67 Taxes and levies paid 31,608,127.59 35,216,278.07 Cash used in other operating activities 34,691,819.50 52,027,666.27 Subtotal of cash used in operating activities 1,543,557,160.80 1,059,602,569.23 Net cash generated from/used in operating activities -15,953,827.96 -36,745,428.28 2. Cash flows from investing activities: Proceeds from disinvestment 13,323,521.50 672,000,000.00 Return on investment 5,802,806.85 Net proceeds from the disposal of fixed assets, intangible assets 4,503,457.00 420,900.00 and other long-lived assets Net proceeds from the disposal of subsidiaries and other business units Cash generated from other investing activities 12,608,822.18 12,538,101.84 11 Lu Thai Textile Co., Ltd. First Quarterly Report 2022 Subtotal of cash generated from investing activities 30,435,800.68 690,761,808.69 Payments for the acquisition of fixed assets, intangible assets and 85,652,349.91 149,203,426.43 other long-lived assets Payments for investments 523,970,000.00 Cash used in other investing activities 108,589.66 1,378,057.33 Subtotal of cash used in investing activities 85,760,939.57 674,551,483.76 Net cash generated from/used in investing activities -55,325,138.89 16,210,324.93 3. Cash flows from financing activities: Capital contributions received 20,783,280.00 Including: Capital contributions by non-controlling interests to subsidiaries Borrowings received 419,668,185.51 443,069,396.92 Cash generated from other financing activities Subtotal of cash generated from financing activities 440,451,465.51 443,069,396.92 Repayment of borrowings 528,860,301.40 261,626,057.07 Interest and dividends paid 8,524,817.85 8,455,661.04 Including: Dividends paid by subsidiaries to non-controlling interests Cash used in other financing activities 4,426,403.00 Subtotal of cash used in financing activities 541,811,522.25 270,081,718.11 Net cash generated from/used in financing activities -101,360,056.74 172,987,678.81 4. Effect of foreign exchange rates changes on cash and cash -3,557,919.18 6,827,333.56 equivalents 5. Net increase in cash and cash equivalents -176,196,942.77 159,279,909.02 Add: Cash and cash equivalents, beginning of the period 1,970,006,884.89 1,396,530,407.47 6. Cash and cash equivalents, end of the period 1,793,809,942.12 1,555,810,316.49 (II) Independent Auditor’s Report Indicate by tick mark whether the financial statements above have been audited by an independent auditor. □ Yes √ No These financial statements have not been audited by such an auditor. 12 Lu Thai Textile Co., Ltd. First Quarterly Report 2022 Board of Director Lu Thai Textile Co., Ltd. 29 April 2022 13