Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd. LU THAI TEXTILE CO., LTD.
Report for the Third Quarter of 2015
October 2015
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd. Section I. Important Reminders
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of Lu Thai 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.
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 Report enclosed in this report is 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.
Report for the Third Quarter of 2015 of Lu Thai 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. 2015||31 Dec. 2014||Increase/decrease (%)||
|Total assets (RMB Yuan)|8,829,506,971.03||8,627,671,393.88||2.34%||
|Net assets attributable to shareholders|6,676,069,664.40||6,588,772,245.55||||
||||||1.32%||
|of the Company (RMB Yuan)|||||||
|||YoY increase/decrease||||YoY|
||Jul.-Sept. 2015|||Jan.-Sept. 2015|||
|||(%)||||increase/decrease (%)|
|Operating revenues (RMB Yuan)|1,569,500,236.21|7.55%||4,511,336,133.37||-1.36%|
|Net profit attributable to shareholders of|204,342,167.24|||548,863,683.96|||
|||-12.40%||||-22.71%|
|the Company (RMB Yuan)|||||||
|Net profit attributable to shareholders of|||||||
||188,913,906.19|-3.37%||497,518,363.60||-25.91%|
|the Company after extraordinary gains|||||||
|and losses (RMB Yuan)|||||||
|Net cash flows from operating activities||||833,510,131.79|||
||--|--||||-1.08%|
|(RMB Yuan)|||||||
|Basic EPS (RMB Yuan/share)|0.21|-12.50%||0.57||-22.97%|
|Diluted EPS (RMB Yuan/share)|0.21|-12.50%||0.57||-22.97%|
|Weighted average ROE (%)|2.89%|-0.56%||7.99%||-3.27%|

 Items and amounts of extraordinary gains and losses
√Applicable□Inapplicable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount as of Jan.-Sept. 2015|Note|
|Gains/losses on the disposal of non-current assets (including the offset part of asset|||
||-2,799,179.00||
|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 the|47,595,882.23||
|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 financial|||
||20,476,085.69||
|assets and tradable financial liabilities and financial assets available for sales, except|||
|for effective hedging related with normal businesses of the Company|||

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Non-operating incomes and expenses other than the above|2,602,829.18||
|Less: Income tax effects|12,471,948.08||
|Minority interests effects (after tax)|4,058,349.66||
|Total|51,345,320.36|--|

 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 thePublic—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
There was no such situation of the Company during the reporting period.
II. Total number of shareholders and shareholdings of the top ten shareholders at the period-end
1. Total number of common shareholders and shareholdings of the top ten common shareholders at the period-end
Unit: share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of common||||||||
||74,991|||||||
|shareholders at the period-end||||||||
|Shareholdings of the top ten common shareholders||||||||
|||||||Pledged or frozen||
||||Shareholdi|||shares||
|||||Number of|Number of|||
||||ng||||Num|
|Name of shareholder||Nature of shareholder||the shares|restricted shares|||
||||percentage|||Status of|ber of|
|||||held|held|||
||||(%)|||shares|share|
||||||||s|
|Zibo Lucheng Textile Investment Co., Ltd.||Domesticnon-state-ownedcorporation|14.69%|140,353,583||||
|Tailun Textile Co., Ltd.||Foreign corporation|12.37%|118,232,400|118,232,400|||
|Central Huijin Investment Co., Ltd.||State-ownedcorporation|2.13%|20,315,300||||
|T.ROWE PRICE INTL DISCOVERYFUND||Foreign corporation|1.99%|18,972,618||||
|LYNAS ASIA FUND||Foreign corporation|1.72%|16,443,675||||
|CHINA SECURITIES FINANCECORPORATION LIMITED||State-ownedcorporation|1.64%|15,679,091||||
|VALUE PARTNERS HIGH-DIVIDENDSTOCKS FUNDS||Foreign corporation|1.46%|13,923,715||||

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|HUA AN NEW SILK ROAD THEMEEQUITY SECURITIES INVESTMENTFUND|Domesticnon-state-ownedcorporation|1.06%||10,110,000|||
|NATIONAL WESTMINSTER BANK PLCAS DEP OF FS GREATER CHINAGROWTH FUND|Foreign corporation|0.96%||9,211,092|||
|VALUE PARTNERS CLASSIC FUND|Foreign corporation|0.85%||8,156,383|||
|Shareholdings of the top ten non-restricted common shareholders|||||||
||||Number of||Type of shares||
||||non-restricted||||
|Name of shareholder|||||||
||||common shares held||Type|Number|
||||at the period-end||||
|Zibo Lucheng Textile Investment Co., Ltd.|||140,353,583||RMB ordinary||
|||||||140,353,583|
||||||share||
|Central Huijin Investment Co., Ltd.|||20,315,300||RMB ordinary||
|||||||20,315,300|
||||||share||
|T.ROWE PRICE INTL DISCOVERY FUND|||18,972,618||Domestically||
||||||listed foreign|18,972,618|
||||||share||
|LYNAS ASIA FUND|||16,443,675||Domestically||
||||||listed foreign|16,443,675|
||||||share||
|CHINA SECURITIES FINANCE CORPORATION LIMITED|||15,679,091||RMB ordinary||
|||||||15,679,091|
||||||share||
|VALUE PARTNERS HIGH-DIVIDEND STOCKS FUNDS|||13,923,715||Domestically||
||||||listed foreign|13,923,715|
||||||share||
|HUA AN NEW SILK ROAD THEME EQUITY SECURITIESINVESTMENT FUND|||10,110,000||RMB ordinary||
|||||||10,110,000|
||||||share||
|NATIONAL WESTMINSTER BANK PLC AS DEP OF FS GREATERCHINA GROWTH FUND|||9,211,092||Domestically||
||||||listed foreign|9,211,092|
||||||share||
|VALUE PARTNERS CLASSIC FUND|||8,156,383||Domestically||
||||||listed foreign|8,156,383|
||||||share||
|First State China A share fund|||8,010,206||RMB ordinary||
|||||||8,010,206|
||||||share||
||||Zibo Lucheng Textile Investment Co., Ltd. is the largest||||
|Explanations about associated relationship or concerted action among|||||||
||||shareholder of the Company and the actual controller.||||
|the above shareholders|||||||
||||Tailun (Thailand) Textile Co., Ltd. is the second largest||||

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
|||
|-|-|
||shareholder as well as sponsor of foreign capital of the|
||Company. All of 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.|
|Top ten non-restricted common shareholders taking part in margin||
||Naught|
|financing and securities lending (if any)||

Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company carry out any agreed buy-back in the reporting period?
□ Yes√ No
No shareholder of the Company carried out any agreed buy-back in the reporting period.
2. Total number of preferred share holders and shareholdings of the top ten preferred share holders at the period-end
□ Applicable√ Inapplicable
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
√ Applicable□ Inapplicable
(1) Monetary funds as at 30 Sept. 2015 stood at RMB 956,833,305.54, up43.61% from the year-beginning amount, mainly because the shares repurchase reserve funds had not paid.
(2) Notes receivable as at 30 Sept. 2015 stood at RMB 168,400,772.02, up47.97% from the year-beginning amount, mainly because the corresponding bank acceptance bills receivable and the LC of the operating income increased at the reporting period.
(3) Interests receivable as at 30 Sept. 2015 stood at RMB 461,711.95, up100.00% from the year-beginning amount, mainly because the interests receivable increased at the reporting period. (4) Other current assets as at 30 Sept. 2015 stood at RMB 24,641,973.01, up376.88% from the year-beginning amount, mainly because the VAT and the input tax to be deducted and the pre-paid Income tax to be deducted increased.
(5) Engineering material as at 30 Sept. 2015 stood at RMB 31,577,585.24, up58.79% from the year-beginning amount, mainly because the equipments to be installed of the Lu Thai (Cambodia) and the Lu Thai (Myanmar) increased.
(6) Long-term deferred expense as at 30 Sept. 2015 stood at RMB 73,791,208.53, up160.57% from the year-beginning amount, mainly because the land rentals of the Lu Thai (Vietnam), the Lu Thai (Cambodia) and Lu Thai (Myanmar) newly increased.
(7) Short-term borrowings as at 30 Sept. 2015 stood at RMB 749,720,308.36, up44.89% from the
year-beginning amount, mainly because the short-term borrowings of the parent company
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd. increased.
(8) Financial liabilities measured at fair value with changes recorded into current gains and losses as at 30 Sept. 2015 stood at RMB 19,444,595.00, up488.13% from the year-beginning amount, mainly because the losses of the changes of the fair value of the forward foreign exchange settlement at the period-end.
(9) Notes payable as at 30 Sept. 2015 stood at RMB 1,823,163.13, down75.44% from the year-beginning amount, mainly because the notes payable paid as expired.
(10) Accounts payable as at 30 Sept. 2015 stood at RMB 231,878,445.18, down32.61% from the year-beginning amount, mainly because the purchase amount of the raw materials payable at the period-begin paid at the reporting period.
(11) Prepayments as at 30 Sept. 2015 stood at RMB 117,594,870.83, up43.10% from the year-beginning amount, mainly because the customer payment in advance increased.
(12) Interests payable as at 30 Sept. 2015 stood at RMB 1,305,403.16, up155.27% from the year-beginning amount, mainly because the increase of the borrowings of the parent company due to the increase of the interests payable.
(13) Long-term borrowings as at 30 Sept. 2015 stood at RMB 0.00, down100.00% from the year-beginning amount, mainly because the transfer from the long-term borrowings at the period-end to the non-current liabilities due within 1 year.
(14) Long-term accounts payable as at 30 Sept. 2015 stood at RMB 0.00, down100.00% from the year-beginning amount, mainly because the payment of the bond amount of the electric power at the reporting period.
(15) Other comprehensive income as at 30 Sept. 2015 stood at RMB 7,770,092.57, up192.06% from the year-beginning amount, mainly because the changes of the exchange rate at the period-end due to the increase of the revenue from the foreign currency statement translation.
(16) Financial expenses for Jan.-Sept. 2015 stood at RMB 15,616,968.80, up48.73% year on year, mainly because the losses of the exchange increased.
(17) Assets impairment losses for Jan.-Sept. 2015 stood at RMB 2,320,358.38, up141.55% year on year, mainly because the increase of the accounts receivable at the period-end due to the increase of the assets impairment losses.
(18) Revenues from the changes of the fair value for Jan.-Sept. 2015 stood at RMB -16,138,395.00, up42.31% year on year, mainly because the financial assets delivered as expired which correspondingly carried forward the originally recognized losses of the changes of the fair value and the changes of the fair value of the financial assets at the reporting period.
(19) Investment revenue for Jan.-Sept. 2015 stood at RMB 36,614,480.69, up47.04% year on year, mainly because the revenue from the derivative investment increased.
II. Progress and influence of significant events, as well as the analysis and explanation on solutions
√ Applicable□ Inapplicable
1. The Company held the 22nd Session of the 7th Board of Directors on 12 Jul., which reviewed and approved the Proposal on Repurchasing Part of the Share A and Share B of the Company and at the same time issued the Preplan on Repurchasing Part of the Share A and Share B of the Company as well as submitted the proposals above to the 1st Extraordinary General Meeting of 2015 held on 5 Aug. 2015, which reviewed and approved the Proposal on Repurchasing Part of the Share A and Share B of the Company. The
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd. Company completed the relevant examination and approval and filing procedures on 10 Oct., and issued the Report about Lu Thai Textile Co., Ltd. Repurchasing Part of the Share A and Share B of the Company. For the details, please refer to the relevant announcements disclosed on the Securities Times, Shanghai Securities News, Ta Kung Pao and the www.cninfo.com.cn respectively on 14 Jul. 2015, 6 Aug. 2015 and 10 Oct. 2015.
2. The major shareholders and the Directors, Supervisors as well as the Senior Executives of the Company had committed on 10 Jul. that not to decrease the shareholding of the stocks of the Company within the future 6 months since 10 Jul., and for the details, please refer to the relevant announcements disclosed on the Securities Times, Shanghai Securities News, Ta Kung Pao and the www.cninfo.com.cn on 10 Jul. 2015.
||||
|-|-|-|
|||Index to the relevant|
|Overview of the significant event|Date of disclosure|announcement disclosed on the|
|||website|
|On 12 Jul. 2015, the Company held the 22nd Session of the 7th Board ofDirectors, which reviewed and approved the Proposal on RepurchasingPart of the Share A and Share B of the Company and at the same timeissued the Preplan on Repurchasing Part of the Share A and Share B ofthe Company.|||
|||Relevant announcements on|
||14 Jul. 2015||
|||www.cninfo.com.cn|
|On 5 Aug. 2015, the Company held the 1st Extraordinary GeneralMeeting of 2015, which reviewed and approved the Proposal onRepurchasing Part of the Share A and Share B of the Company.|||
|||Relevant announcements on|
||6 Aug. 2015||
|||www.cninfo.com.cn|
|On 10 Oct. 2015, the Company completed the relevant examination andapproval and filing procedures and issued the Report about Lu ThaiTextile Co., Ltd. Repurchasing Part of the Share A and Share B of theCompany.|||
|||Relevant announcements on|
||10 Oct. 2015||
|||www.cninfo.com.cn|

III. Commitments made by the Company or shareholders holding over5% of theCompany’s shares in the reporting period or such commitments carried down into the reporting period√ Applicable□ Inapplicable
|||||||
|-|-|-|-|-|-|
||||Time of|||
||Commitment||making|Period of||
|Commitment||Contents|||Fulfillment|
||maker||commitme|commitment||
||||nt|||
|Commitments made in a share reform||||||
|Commitments made in an acquisition report||||||
|or a report on equity changes||||||
|Commitments made in asset reorganization||||||
|Commitments made in the first public||||||
|offering or refinancing.||||||
||Zibo|The biggest shareholder|||As the end of|
|Other commitments made to minority|||10 Jul.|10 Jul. 2015 to||
||Lucheng|Zibo Lucheng Textile|||the|
|shareholders|||2015|10 Jan. 2016||
||Textile|Investment Co., Ltd. and|||reporting|

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
|||||
|-|-|-|-|
||Investment|the directors, supervisors|period,|
||Co., Ltd. and|and senior executives|decreased|
||the directors,|committed that the shares|its holding|
||supervisors|of the Company held by|of shares|
||and senior|them would not be|of the|
||executives|decreased from 10 Jul.|Company|
|||2015 to the future sixmonths||
|Executed in time or not?|Yes|||

IV. Predict the 2015 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. Securities investment
□Applicable√Inapplicable
The Company was not involved in any securities investment of the reporting period.
VI. Shareholdings in other listed companies
□Applicable√ Inapplicable
There was no shareholding in other listed companies during the reporting period.
VII. Derivative investment
√ Applicable□ Inapplicable
Unit: RMB Ten Thousand Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Proportion||
|||Rela||||||||||
|||||||||||of the||
|||||||||Impairm|||Actual|
|||ted-p||||||||closing||
||||Type of|Initial|||Opening||Closing|||
|Operat|Relati|arty|||Beginning|||ent||investment|gain/loss|
|||||||Ending date||||||
|||trans|derivative|investment|||investmen|provisio|investment|amount in|in|
|or|on||||date|||||||
|||actio|investment|amount|||t amount|n (if|amount|the|reportin|
|||n or||||||any)||Company’s|g period|
|||not||||||||closing net||
|||||||||||assets (%)||
|Comm|||Forward|||||||||
||Non-re||||14 Nov.|||||||
|ercial||No|exchange|236,368.66||28 Jun. 2016|21,213.88||109,253.37|15.38%|2,411.32|
||lated||||2014|||||||
|bank|||settlement|||||||||
|Comm|Non-re|No|Foreign|7,065.35|11 Feb.|28 Sep. 2015|0||0||10.18|

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|ercial|lated||exchange||2015||||||
|bank|||trading||||||||
|Comm|||||||||||
||Non-re||Option||||||||
|ercial||No||228,752.31|21 Oct. 2015|10 Jul. 2016|31,835|145,982.05|20.55%|1,239.95|
||lated||portfolio||||||||
|bank|||||||||||
|Total||||472,186.32|--|--|53,048.88|255,235.42|35.93%|3,661.45|
|Capital source for derivative|||||||||||
|||||Self-owned funds|||||||
|investment|||||||||||
|Cases involving lawsuit (if|||||||||||
|||||No|||||||
|applicable)|||||||||||
|Disclosure date of the board|||||||||||
|announcement approving the||||25 Apr. 2015|||||||
|derivative investment (if any)|||||||||||
|Disclosure date of the general|||||||||||
|meeting announcement|||||||||||
|approving the derivative|||||||||||
|investment (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:|||||||
|||||The Company conducted derivatives products transaction in strict accordance with relevant laws|||||||
|||||and rules as well as regulatory policies from government securities regulatory authorities, if there|||||||
|Analysis on risks and control||||were no standard operation procedures and strict approval procedures, it was easy to cause|||||||
|measures of derivative products||||compliant and regulatory risks existing in the validity and feasibility of contract, commitments and|||||||
|held in the reporting period||||other legal documents signed.|||||||
|(including but not limited to||||Precautionary measures: The Company carefully studied and mastered laws, regulations and|||||||
|market risk, liquidity risk, credit||||policies relevant to derivative products transaction, formulated internal control rules for the|||||||
|risk, operation risk, law risk,||||forward settlement hedging business, standardized the operation procedures. And strengthened the|||||||
|etc.)||||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|||||||
|||||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,|||||||

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
|||
|-|-|
||regulations, the Company’s Articles of Association, the Management Rules for Derivative|
||Investment of Lu Thai Textile Co., Ltd., the Proposal on the Plan of Lu Thai Textile Co., Ltd. for|
||Derivative Transactions in 2014 approved at the 7th Session of the 7th Board of Directors on 25|
||Mar. 2014, 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 inter-bank spot RMB-dollar trading band from 1% to 2% since 17 Mar.|
||2014, 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. 2015, the Company held 76 undue financial derivative product contracts, totaling|
|values in the reporting period of|US$441.5 million, including 35 forward settlement contracts worth US$172 million and 41 foreign|
|the invested derivatives. And|exchange option contracts worth US$ 269.5 million (the latest expiration before Jul 2016). The|
|the analysis on the fair value of|financial derivative products above accounted for 35.93% of the closing net assets.|
|the derivatives should include|2. From Jan. 2015 to Sep. 2015, the due financial derivative products of the Company totally|
|the specific use methods and the|equaled to US$ 347.5862 million, all delivered on time, and the gain generated was RMB36.6145|
|relevant assumptions and|million. To be specific, the due forward settlement was US$203.127million, generating gain of|

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
|||
|-|-|
|parameters.|RMB24.1132 million; the due forward foreign exchange trading amount equaled to US$ 11.4592|
||million, which generated gain of RMB101800; and the due foreign exchange options equaled to|
||US$133 million, which RMB123million timely delivered due to the arrival of delivery conditions|
||generated a gain of RMB12.3995 million, US$10 million had not been delivered due to not arrive|
||the delivery conditions.|
|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’s independent directors Zhou Zhiji, Zhang Chengzhu, Wang Lei, Xu Jianjun and|
||Zhao Yao, concerning conducting derivatives business, have issued the following professional|
|Specific opinion from|advice: we were of the opinion that it would strengthen the Company’s competitiveness to use|
|independent directors on the|derivative transactions with focus on forward settlement and purchase as an effective tool to avoid|
|Company’s derivatives|foreign exchange risks, to strengthen the relevant internal control and to carry out the loss and risk|
|investment and risk control|prevention 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.|

VIII. Researches, visits and interviews received in the reporting period
√Applicable□Inapplicable
|||||||
|-|-|-|-|-|-|
||||||Main discussion and|
|||Way of||||
|Time|Place||Visitor type|Visitor|materials provided by the|
|||reception||||
||||||Company|
|||||RBC Global Asset Management||
|||Field|||The Company's current|
|8 Sep. 2015|Conference room||Institution|Richard Farrell, Christoffer||
|||research|||situation|
|||||Enemaerke||
||Office of the|||Journalist Lihua of Da Zhihui|The Company's current|
|22 Sep. 2015||Other|Institution|||
||chairman secretary|||News Agency and investor|situation|
|||Field||Credit Suisse (Hong Kong) Co.,|The Company's current|
|25 Sep. 2015|Conference room||Institution|||
|||research||Ltd. Wang Yifu|situation|
|||Field|||The Company's current|
|25 Sep. 2015|Conference room||Institution|Zhizhu Investment Liu Ren||
|||research|||situation|

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd. Section IV. Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by Lu Thai Textile Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|956,833,305.54|666,293,798.30|
|Financial assets measured at fair value of which changes|||
|are recorded in current profits and losses|||
|Derivative financial assets|||
|Notes receivable|168,400,772.02|113,804,477.43|
|Accounts receivable|266,014,761.63|211,970,554.10|
|Accounts paid in advance|145,668,088.10|174,865,932.88|
|Interests receivable|461,711.95||
|Dividend receivable|||
|Other accounts receivable|49,452,677.54|63,378,909.28|
|Financial assets purchased under agreements to resell|||
|Inventories|1,574,079,743.23|1,752,570,382.21|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|24,641,973.01|5,167,324.98|
|Total current assets|3,185,553,033.02|2,988,051,379.18|
|Non-current assets:|||
|Loans by mandate and advances granted|||
|Available-for-sale financial assets|67,442,600.00|67,442,600.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|5,280,998.00|6,980,998.00|
|Long-term equity investment|||
|Investing real estate|4,874,905,537.11|4,930,848,056.04|
|Fixed assets|138,598,587.06|123,585,226.80|

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Construction in progress|31,577,585.24|19,885,765.41|
|Engineering materials|||
|Disposal of fixed assets|1,000,136.01|1,310,500.00|
|Production biological assets|366,217,416.47|373,760,347.71|
|Oil-gas assets|||
|Intangible assets|20,613,803.29|20,613,803.29|
|R&D expense|73,791,208.53|28,319,033.27|
|Goodwill|51,744,783.30|49,963,446.84|
|Long-term deferred expenses|12,781,283.00|16,910,237.34|
|Deferred income tax assets|5,643,953,938.01|5,639,620,014.70|
|Other non-current assets|8,829,506,971.03|8,627,671,393.88|
|Total of non-current assets|||
|Total assets|749,720,308.36|517,452,946.24|
|Current liabilities:|19,444,595.00|3,306,200.00|
|Short-term borrowings|||
|Financial liabilities measured at fair value of which|||
||1,823,163.13|7,421,979.09|
|changes are recorded in current profits and losses|||
|Derivative financial liabilities|231,878,445.18|344,082,239.16|
|Notes payable|117,594,870.83|82,176,191.45|
|Accounts payable|236,326,185.73|261,539,206.93|
|Accounts received in advance|56,883,256.04|74,052,405.97|
|Financial assets sold for repurchase|1,305,403.16|511,373.44|
|Handling charges and commissions payable|441,113.64|441,456.54|
|Payroll payable|65,412,413.07|58,075,873.18|
|Tax payable|||
|Interest payable|89,058,200.00|100,733,898.72|
|Dividend payable|||
|Liabilities divided as held for sale|1,569,887,954.14|1,449,793,770.72|
|Non-current liabilities due within 1 year|||
|Other current liabilities||9,904,645.59|
|Total current liabilities||220,000.00|
|Non-current liabilities:|86,564,776.96|80,360,457.97|
|Long-term borrowings|||
|Long-term payables|||

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Long-term payroll payables|64,891,997.89|67,057,221.40|
|Specific payables|2,148,201.86|2,064,713.02|
|Estimated liabilities|1,840,000.00|1,840,000.00|
|Deferred income|155,444,976.71|161,447,037.98|
|Deferred income tax liabilities|1,725,332,930.85|1,611,240,808.70|
|Other non-current liabilities|||
|Total non-current liabilities|955,758,496.00|955,758,496.00|
|Total liabilities|1,007,142,273.08|1,007,039,561.13|
|Owners’ equity:|||
|Share capital|7,770,092.57|-8,440,178.37|
|Capital reserves|||
|Less: Treasury stock|742,347,832.47|742,347,832.47|
|Other comprehensive income|||
|Specific reserves|3,963,050,970.28|3,892,066,534.32|
|Surplus reserves|6,676,069,664.40|6,588,772,245.55|
|Provisions for general risks|428,104,375.78|427,658,339.63|
|Retained profits|7,104,174,040.18|7,016,430,585.18|
|Total equity attributable to owners of the Company|8,829,506,971.03|8,627,671,393.88|

 Legal representative: Liu Shizhen Person-in-charge of the accounting work: Zhang Hongmei
Chief of the accounting division: Zhang Keming
2. Balance sheet of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|463,633,217.19|250,409,717.93|
|Financial assets measured at fair value of which changes are|||
|recorded in current profits and losses|||
|Derivative financial assets|||
|Notes receivable|125,792,223.71|87,341,876.69|
|Accounts receivable|310,241,737.50|321,897,074.61|
|Accounts paid in advance|164,730,252.17|193,383,406.51|
|Interest receivable|||

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Dividend receivable|||
|Other accounts receivable|14,337,059.31|28,049,517.79|
|Inventories|1,137,616,372.52|1,206,795,514.65|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|6,994,884.74|1,017,648.28|
|Total current assets|2,223,345,747.14|2,088,894,756.46|
|Non-current assets:|||
|Available-for-sale financial assets|55,282,600.00|55,282,600.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|1,528,282,915.48|1,170,861,572.56|
|Investing real estate|||
|Fixed assets|3,079,981,260.57|3,115,567,670.72|
|Construction in progress|76,942,012.49|77,701,863.38|
|Engineering materials|3,030,253.44|18,626,397.04|
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|233,676,213.62|239,561,216.15|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|32,256,443.13|31,683,250.78|
|Other non-current assets|5,406,401.00|5,406,401.00|
|Total of non-current assets|5,014,858,099.73|4,714,690,971.63|
|Total assets|7,238,203,846.87|6,803,585,728.09|
|Current liabilities:|||
|Short-term borrowings|539,827,578.80|109,116,402.18|
|Financial liabilities measured at fair value of which changes|||
||16,760,890.00|3,075,000.00|
|are recorded in current profits and losses|||
|Derivative financial liabilities|||
|Notes payable|807,271.80|4,126,949.64|
|Accounts payable|160,857,593.47|370,179,503.31|

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Accounts received in advance|80,092,867.72|42,230,252.30|
|Payroll payable|180,458,742.95|201,779,896.86|
|Tax payable|36,616,744.96|38,755,976.56|
|Interest payable|699,480.68|401,695.08|
|Dividend payable|441,113.64|441,456.54|
|Other accounts payable|25,364,828.60|22,996,300.29|
|Liabilities held for sale|||
|Non-current liabilities due within 1 year|89,058,200.00|100,733,898.72|
|Other current liabilities|||
|Total current liabilities|1,130,985,312.62|893,837,331.48|
|Non-current liabilities:|||
|Long-term borrowings||9,904,645.59|
|Long-term payables|||
|Long-term payroll payables|86,564,776.96|80,360,457.97|
|Specific payables|||
|Estimated liabilities|||
|Deferred income|29,963,126.44||
|Deferred income tax liabilities|||
|Other non-current liabilities||30,469,481.47|
|Total non-current liabilities|116,527,903.40|120,734,585.03|
|Total liabilities|1,247,513,216.02|1,014,571,916.51|
|Owners’ equity:|||
|Share capital|955,758,496.00|955,758,496.00|
|Capital reserves|1,013,494,181.86|1,013,392,242.22|
|Less: Treasury stock|||
|Other comprehensive income|||
|Specific reserves|||
|Surplus reserves|742,347,832.47|742,347,832.47|
|Retained profits|3,279,090,120.52|3,077,515,240.89|
|Total owners’ equity|5,990,690,630.85|5,789,013,811.58|
|Total liabilities and owners’ equity|7,238,203,846.87|6,803,585,728.09|

 3. Consolidated income statement
Unit: RMB Yuan
Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Item|Jul.-Sept. 2015|Jul.-Sept. 2014|
|I. Total operating revenues|1,569,500,236.21|1,459,299,125.04|
|Including: Sales income|1,569,500,236.21|1,459,299,125.04|
|II. Total operating costs|1,341,971,914.13|1,229,616,946.53|
|Including: Cost of sales|1,114,701,276.77|1,016,099,059.98|
|Taxes and associate charges|14,608,146.65|11,637,382.05|
|Selling and distribution expenses|44,750,892.55|38,911,228.21|
|Administrative expenses|159,277,381.50|160,259,173.42|
|Financial expenses|6,595,261.92|3,058,935.04|
|Asset impairment loss|2,038,954.74|-348,832.17|
|Add: Gain/(loss) from change in fair value (“-” means loss)|-28,385,095.00|3,023,830.00|
|Gain/(loss) from investment (“-” means loss)|7,753,914.81|3,622,872.65|
|Including: share of profits in associates and joint ventures|||
|Foreign exchange gains (“-” means loss)|||
|III. Business profit (“-” means loss)|206,897,141.89|236,328,881.16|
|Add: non-operating income|42,515,503.14|38,684,003.14|
|Including: Gains on disposal of non-current assets|148,208.96|2,655,811.63|
|Less: non-operating expense|991,351.38|1,003,631.25|
|Including: Losses on disposal of non-current assets|248,952.00|823,879.58|
|IV. Total profit (“-” means loss)|248,421,293.65|274,009,253.05|
|Less: Income tax expense|32,998,250.07|39,474,507.51|
|V. Net profit (“-” means loss)|215,423,043.58|234,534,745.54|
|Net profit attributable to owners of the Company|204,342,167.24|233,259,629.65|
|Minority shareholders’ income|11,080,876.34|1,275,115.89|
|VI. After-tax net amount of other comprehensive incomes|15,635,393.71|474,152.61|
|After-tax net amount of other comprehensive incomes|||
||15,635,393.71|474,152.61|
|attributable to owners of the Company|||
|(I) Other comprehensive incomes that will not be|||
|reclassified into gains and losses|||
|1. Changes in net liabilities or assets with a defined|||
|benefit plan upon re-measurement|||
|2. Enjoyable shares in other comprehensive incomes in|||
|investees that cannot be reclassified into gains and losses under the|||
|equity method|||
|(II) Other comprehensive incomes that will be reclassified|||
||15,635,393.71|474,152.61|
|into gains and losses|||

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|1. Enjoyable shares in other comprehensive incomes in|||
|investees that will be reclassified into gains and losses under the|||
|equity method|||
|2. Gains and losses on fair value changes of|||
|available-for-sale financial assets|||
|3. Gains and losses on reclassifying held-to-maturity|||
|investments into available-for-sale financial assets|||
|4. Effective hedging gains and losses on cash flows|||
|5. Foreign-currency financial statement translation|||
||15,635,393.71|474,152.61|
|difference|||
|6. Other|||
|After-tax net amount of other comprehensive incomes|||
|attributable to minority shareholders|||
|VII. Total comprehensive incomes|231,058,437.29|235,008,898.15|
|Attributable to owners of the Company|219,977,560.95|233,733,782.26|
|Attributable to minority shareholders|11,080,876.34|1,275,115.89|
|VIII. Earnings per share|||
|(I) Basic earnings per share|0.21|0.24|
|(II) Diluted earnings per share|0.21|0.24|

 Where business mergers under the same control occurred in this reporting period, the net profit achieved by the merged parties before the business mergers was RMB 0.00, with the corresponding amount for the last period being RMB 0.00.
Legal representative: Liu Shizhen Person-in-charge of the accounting work: Zhang Hongmei
Chief of the accounting division: Zhang Keming
4. Income statement of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jul.-Sept. 2015|Jul.-Sept. 2014|
|I. Total sales|1,278,909,332.19|1,146,630,743.95|
|Less: cost of sales|948,733,206.69|806,314,524.45|
|Business taxes and surcharges|12,428,849.05|7,586,122.90|
|Distribution expenses|22,526,384.35|17,703,097.47|
|Administrative expenses|112,608,039.08|114,683,553.89|
|Financial costs|5,553,363.77|31,161.80|
|Impairment loss|-588,263.79|1,537,244.61|
|Add: gain/(loss) from change in fair value (“-” means loss)|-25,523,190.00|2,722,930.00|

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Gain/(loss) from investment (“-” means loss)|206,830,114.81|63,208,307.08|
|Including: income from investment on associates and joint|||
|ventures|||
|II. Business profit (“-” means loss)|358,954,677.85|264,706,275.91|
|Add: non-operating income|31,432,158.72|37,341,244.12|
|Including: Gains on disposal of non-current assets|148,208.96|2,628,743.00|
|Less: non-operating expense|306,073.71|388,059.63|
|Including: Losses on disposal of non-current assets|214,190.34|301,200.85|
|III. Total profit (“-” means loss)|390,080,762.86|301,659,460.40|
|Less: Income tax expense|22,267,924.25|29,849,705.15|
|IV. Net profit (“-” means loss)|367,812,838.61|271,809,755.25|
|V. After-tax net amount of other comprehensive incomes|||
|(I) Other comprehensive incomes that will not be reclassified|||
|into gains and losses|||
|1. Changes in net liabilities or assets with a defined benefit|||
|plan upon re-measurement|||
|2. Enjoyable shares in other comprehensive incomes in|||
|investees that cannot be reclassified into gains and losses under|||
|the equity method|||
|(II) Other comprehensive incomes that will be reclassified into|||
|gains and losses|||
|1. Enjoyable shares in other comprehensive incomes in|||
|investees that will be reclassified into gains and losses under the|||
|equity method|||
|2. Gains and losses on fair value changes of|||
|available-for-sale financial assets|||
|3. Gains and losses on reclassifying held-to-maturity|||
|investments into available-for-sale financial assets|||
|4. Effective hedging gains and losses on cash flows|||
|5. Foreign-currency financial statement translation|||
|difference|||
|6. Other|||
|VI. Total comprehensive incomes|367,812,838.61|271,809,755.25|
|VII. Earnings per share|||
|(I) Basic earnings per share|0.38|0.28|
|(II) Diluted earnings per share|0.38|0.28|

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd. 5. Consolidated cash flow statement
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2015|Jan.-Sept. 2014|
|I. Operating revenues|4,511,336,133.37|4,573,525,706.66|
|Including: Sales income|4,511,336,133.37|4,573,525,706.66|
|II. Operating costs|3,917,910,680.54|3,781,257,471.20|
|Including: Cost of sales|3,247,723,477.84|3,153,949,353.35|
|Business tax and surcharges|39,252,858.89|35,180,972.00|
|Sales expense|142,396,301.55|132,019,374.03|
|Administration expense|470,600,715.08|455,191,848.05|
|Financial expense|15,616,968.80|10,500,242.50|
|Impairment loss|2,320,358.38|-5,584,318.73|
|Add: gain/(loss) from change in fair value (“-” means loss)|-16,138,395.00|-27,975,320.00|
|Gain/(loss) from investment (“-” means loss)|36,614,480.69|24,901,821.73|
|Including: income from investment on associates and joint|||
|ventures|||
|Exchange gain (“-” means loss)|||
|III. Business profit (“-” means loss)|613,901,538.52|789,194,737.19|
|Add: non-operating income|52,636,297.85|58,510,771.38|
|Including: Gains on disposal of non-current assets|958,145.92|2,706,768.68|
|Less: non-operating expense|5,236,765.44|4,098,753.25|
|Including: Losses on disposal of non-current assets|3,757,324.92|2,878,470.70|
|IV. Total profit (“-” means loss)|661,301,070.93|843,606,755.32|
|Less: Income tax expense|100,467,780.03|127,534,886.46|
|V. Net profit (“-” means loss)|560,833,290.90|716,071,868.86|
|Net profit attributable to owners of the Company|548,863,683.96|710,139,886.58|
|Minority shareholders’ income|11,969,606.94|5,931,982.28|
|VI. After-tax net amount of other comprehensive incomes|16,210,270.94|470,790.84|
|After-tax net amount of other comprehensive incomes|||
||16,210,270.94|470,790.84|
|attributable to owners of the Company|||
|(I) Other comprehensive incomes that will not be|||
|reclassified into gains and losses|||
|1. Changes in net liabilities or assets with a defined|||
|benefit plan upon re-measurement|||
|2. Enjoyable shares in other comprehensive incomes in|||

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|investees that cannot be reclassified into gains and losses under the|||
|equity method|||
|(II) Other comprehensive incomes that will be reclassified|||
||16,210,270.94|470,790.84|
|into gains and losses|||
|1. Enjoyable shares in other comprehensive incomes in|||
|investees that will be reclassified into gains and losses under the|||
|equity method|||
|2. Gains and losses on fair value changes of|||
|available-for-sale financial assets|||
|3. Gains and losses on reclassifying held-to-maturity|||
|investments into available-for-sale financial assets|||
|4. Effective hedging gains and losses on cash flows|||
|5. Foreign-currency financial statement translation|||
||16,210,270.94|470,790.84|
|difference|||
|6. Other|||
|After-tax net amount of other comprehensive incomes|||
|attributable to minority shareholders|||
|VII. Total comprehensive incomes|577,043,561.84|716,542,659.70|
|Attributable to owners of the Company|565,073,954.90|710,610,677.42|
|Attributable to minority shareholders|11,969,606.94|5,931,982.28|
|VIII. Earnings per share|||
|(I) Basic earnings per share|0.57|0.74|
|(II) Diluted earnings per share|0.57|0.74|

 Where business mergers under the same control occurred in this period, the net profit achieved by the merged parties before the business mergers was RMB 0.00, with the corresponding amount for the same period of last year being RMB 0.00.
6. Income statement of the Company for Jan.-Sept. 2015
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2015|Jan.-Sept. 2014|
|I. Total sales|3,628,521,750.08|3,464,830,268.05|
|Less: cost of sales|2,707,477,419.03|2,403,442,311.30|
|Business taxes and surcharges|31,909,658.05|25,674,053.53|
|Distribution expenses|67,900,356.82|59,880,409.40|
|Administrative expenses|332,216,122.64|322,513,995.73|
|Financial costs|8,928,427.29|-4,693,539.59|
|Impairment loss|-722,593.45|387,972.56|

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Add: gain/(loss) from change in fair value (“-” means|||
||-13,685,890.00|-23,083,400.00|
|loss)|||
|Gain/(loss) from investment (“-” means loss)|251,346,259.90|81,329,816.12|
|Including: income from investment on associates|||
|and joint ventures|||
|II. Business profit (“-” means loss)|718,472,729.60|715,871,481.24|
|Add: non-operating income|36,977,224.96|53,629,451.00|
|Including: Gains on disposal of non-current assets|535,631.91|2,643,079.05|
|Less: non-operating expense|3,984,982.02|3,083,309.92|
|Including: Losses on disposal of non-current assets|3,630,036.75|2,354,115.36|
|III. Total profit (“-” means loss)|751,464,972.54|766,417,622.32|
|Less: Income tax expense|72,010,844.91|96,158,238.39|
|IV. Net profit (“-” means loss)|679,454,127.63|670,259,383.93|
|V. After-tax net amount of other comprehensive|||
|incomes|||
|(I) Other comprehensive incomes that will not be|||
|reclassified into gains and losses|||
|1. Changes in net liabilities or assets with a|||
|defined benefit plan upon re-measurement|||
|2. Enjoyable shares in other comprehensive|||
|incomes in investees that cannot be reclassified into|||
|gains and losses under the equity method|||
|(II) Other comprehensive incomes that will be|||
|reclassified into gains and losses|||
|1. Enjoyable shares in other comprehensive|||
|incomes in investees that will be reclassified into gains|||
|and losses under the equity method|||
|2. Gains and losses on fair value changes of|||
|available-for-sale financial assets|||
|3. Gains and losses on reclassifying|||
|held-to-maturity investments into available-for-sale|||
|financial assets|||
|4. Effective hedging gains and losses on cash|||
|flows|||
|5. Foreign-currency financial statement translation|||
|difference|||
|6. Other|||
|VI. Total comprehensive incomes|679,454,127.63|670,259,383.93|

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|VII. Earnings per share|||
|(I) Basic earnings per share|0.71|0.70|
|(II) Diluted earnings per share|0.71|0.70|

 7. Consolidated cash flow statement for Jan.-Sept. 2015
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2015|Jan.-Sept. 2014|
|I. Cash flows from operating activities:|||
|Cash received from sale of commodities and rendering of service|4,664,920,573.83|4,739,038,472.26|
|Tax refunds received|148,262,497.13|147,836,635.52|
|Other cash received relating to operating activities|70,996,236.91|77,348,657.08|
|Subtotal of cash inflows from operating activities|4,884,179,307.87|4,964,223,764.86|
|Cash paid for goods and services|2,501,134,045.38|2,615,548,578.31|
|Cash paid to and for employees|1,067,413,577.72|1,019,650,627.92|
|Various taxes paid|289,646,768.69|285,300,761.33|
|Other cash payment relating to operating activities|192,474,784.29|201,143,159.99|
|Subtotal of cash outflows from operating activities|4,050,669,176.08|4,121,643,127.55|
|Net cash flows from operating activities|833,510,131.79|842,580,637.31|
|II. Cash flows from investing activities:|||
|Cash received from retraction of investments|||
|Cash received from return on investments||120,000.00|
|Net cash received from disposal of fixed assets, intangible assets and other|||
||2,105,031.35|10,003,767.30|
|long-term assets|||
|Net cash received from disposal of subsidiaries or other business units|||
|Other cash received relating to investing activities|39,921,863.49|30,237,990.10|
|Subtotal of cash inflows from investing activities|42,026,894.84|40,361,757.40|
|Cash paid to acquire fixed assets, intangible assets and other long-term|||
||251,589,688.97|617,521,092.48|
|assets|||
|Cash paid for investment|||
|Net increase of pledge loan|||
|Net cash paid to acquire subsidiaries and other business units|||
|Other cash payments relating to investing activities|||
|Subtotal of cash outflows from investing activities|251,589,688.97|617,521,092.48|
|Net cash flows from investing activities|-209,562,794.13|-577,159,335.08|

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|III. Cash Flows from Financing Activities:|||
|Cash received from capital contributions|500,000.00|500,000.00|
|Including: Cash received from minority shareholder investments by|||
|subsidiaries|||
|Cash received from borrowings|1,269,421,740.31|875,003,762.86|
|Cash received from issuance of bonds|||
|Other cash received relating to financing activities|139,444,128.91|12,000,000.00|
|Subtotal of cash inflows from financing activities|1,409,365,869.22|887,503,762.86|
|Repayment of borrowings|1,075,891,350.84|1,071,424,640.49|
|Cash paid for interest expenses and distribution of dividends or profit|497,621,895.25|408,680,695.24|
|Including: dividends or profit paid by subsidiaries to minority|||
|shareholders|||
|Other cash payments relating to financing activities|89,026,946.69|37,633,916.36|
|Sub-total of cash outflows from financing activities|1,662,540,192.78|1,517,739,252.09|
|Net cash flows from financing activities|-253,174,323.56|-630,235,489.23|
|IV. Effect of foreign exchange rate changes on cash and cash equivalents|9,752,853.01|4,837,492.36|
|V. Net increase in cash and cash equivalents|380,525,867.11|-359,976,694.64|
|Add: Opening balance of cash and cash equivalents|649,393,798.30|869,909,505.89|
|VI. Closing balance of cash and cash equivalents|1,029,919,665.41|509,932,811.25|

 8. Cash flow statement of the Company for Jan.-Sept. 2015
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2015|Jan.-Sept. 2014|
|I. Cash flows from operating activities:|||
|Cash received from sale of commodities and rendering of service|3,590,700,117.90|3,510,456,395.45|
|Tax refunds received|110,604,855.86|116,413,226.57|
|Other cash received relating to operating activities|35,871,142.11|51,225,907.26|
|Subtotal of cash inflows from operating activities|3,737,176,115.87|3,678,095,529.28|
|Cash paid for goods and services|1,957,819,052.08|2,009,520,631.31|
|Cash paid to and for employees|811,587,279.87|770,902,054.08|
|Various taxes paid|130,598,955.75|175,084,074.85|
|Other cash payment relating to operating activities|121,812,679.96|114,263,823.31|
|Subtotal of cash outflows from operating activities|3,021,817,967.66|3,069,770,583.55|
|Net cash flows from operating activities|715,358,148.21|608,324,945.73|

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of investments|||
|Cash received from return on investments|||
|Net cash received from disposal of fixed assets, intangible assets|||
||1,623,821.35|9,663,804.30|
|and other long-term assets|||
|Net cash received from disposal of subsidiaries or other business|||
|units|||
|Other cash received relating to investing activities|35,312,645.63|25,833,632.06|
|Subtotal of cash inflows from investing activities|36,936,466.98|35,497,436.36|
|Cash paid to acquire fixed assets, intangible assets and other|||
||112,186,277.99|477,924,701.00|
|long-term assets|||
|Cash paid for investment|352,757,288.38|87,406,362.39|
|Net cash paid to acquire subsidiaries and other business units|||
|Other cash payments relating to investing activities|||
|Subtotal of cash outflows from investing activities|464,943,566.37|565,331,063.39|
|Net cash flows from investing activities|-428,007,099.39|-529,833,627.03|
|III. Cash Flows from Financing Activities:|||
|Cash received from capital contributions|||
|Cash received from borrowings|752,717,733.96|308,716,019.09|
|Cash received from issuance of bonds|||
|Other cash received relating to financing activities|61,013,728.00||
|Subtotal of cash inflows from financing activities|813,731,461.96|308,716,019.09|
|Repayment of borrowings|347,320,254.96|158,232,764.78|
|Cash paid for interest expenses and distribution of dividends or|||
||479,370,646.28|378,078,667.88|
|profit|||
|Other cash payments relating to financing activities|61,013,728.00|25,633,916.36|
|Sub-total of cash outflows from financing activities|887,704,629.24|561,945,349.02|
|Net cash flows from financing activities|-73,973,167.28|-253,229,329.93|
|IV. Effect of foreign exchange rate changes on cash and cash|||
||745,617.72|4,824,462.32|
|equivalents|||
|V. Net increase in cash and cash equivalents|214,123,499.26|-169,913,548.91|
|Add: Opening balance of cash and cash equivalents|249,509,717.93|503,157,687.92|
|VI. Closing balance of cash and cash equivalents|463,633,217.19|333,244,139.01|

Report for the Third Quarter of 2015 of Lu Thai Textile Co., Ltd. II.Auditor’s report
Is this report audited?
□ Yes√ No
This report is not audited.
Lu Thai Textile Co., Ltd.
Board Chairman: Liu Shizhen
29 Oct. 2015