Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd. Lu Thai Textile Co., Ltd.
Report for the First Quarter of 2016
April 2016
Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd. Section I Important Statements
The Board of Directors, the Supervisory Committee, directors, supervisors and senior management staff of Lu Thai Textile Co., Ltd. (hereinafter referred to as “the Company”) warrant that the information carried in 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.
All directors have attended the board session for reviewing this report.
Liu Zibin, 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 statements enclosed in this report are 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 First Quarter of 2016 of Lu Thai Textile Co., Ltd. Section II Financial Results and Changes in Shareholders
I Financial results
Whether the Company performed any retroactive adjustments to or restatement of its accounting data due to changes of accounting policies or correction of accounting errors
□ Yes√ No
|||||
|-|-|-|-|
||January-March 2016|January-March 2015|+/-%|
|Operating revenues (RMB)|1,282,806,624.05|1,428,557,406.74|-10.20%|
|Net profit attributable to shareholders of the Company (RMB)|150,268,522.21|152,714,080.35|-1.60%|
|Net profit attributable to shareholders of the Company after|137,542,633.98|131,929,166.88|4.25%|
|deducting exceptional profit and loss (RMB)||||
|Net operating cash flow (RMB)|183,258,282.60|-97,329,127.52|-288.29%|
|Basic earnings per share (RMB/share)|0.16|0.16|0.00%|
|Diluted earnings per share (RMB/share)|0.16|0.16|0.00%|
|Weighted average return on equity|2.15%|2.29%|-0.14%|
||31 March 2016|31 December 2015|+/-%|
|Total assets (RMB)|9,059,317,160.04|9,091,170,499.22|-0.35%|
|Net assets attributable to shareholders of the Company (RMB)|6,865,658,300.17|6,837,113,075.58|0.42%|

 Exceptional profit and loss
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|Note|
|Profit/loss on disposal of non-current assets (including offset amount of asset impairment|||
||-119,596.26||
|provisions)|||
|Government grants charged to the profit/loss for the Reporting Period (except for the|||
|government grants closely related to the business of the Company and given at a fixed quota or|4,596,057.87||
|amount in accordance with the State’s uniform 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 assets and tradable|||
||4,700,743.33||
|financial liabilities and financial assets available for sales, except for effective hedging related|||
|with normal businesses of the Company|||
|Non-operating incomes and expenses other than the above|2,954,115.86||
|Less: Income tax effects|-1,211,324.23||
|Minority interests effects (after tax)|616,756.80||
|Total|12,725,888.23|--|

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd. Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Profit and Loss, or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss□ Applicable√ Not applicable
No such cases in the Reporting Period.
II Total number of shareholders at the period-end and shareholdings of top ten shareholders 1. Numbers of common shareholders and preference shareholders with resumed voting rights as well as shareholdings of top ten shareholders
Unit: share
||||||||||
|-|-|-|-|-|-|-|-|-|
|Total number of common||||Total number of preference shareholders with|||||
||69,043|||||||0|
|shareholders at the period-end||||resumed voting rights at the period-end (if any)|||||
|Shareholdings of top ten shareholders|||||||||
||||||||Pledged or frozen||
||||Shareholding|||Number of|shares||
|||Nature of|||Number of||||
|Name of shareholder|||percentage|||restricted||Numbe|
|||shareholder|||shares held||Status of||
||||(%)|||shares held||r of|
||||||||shares||
|||||||||shares|
|Zibo Lucheng Textile Investment Co., Ltd.||Domesticnon-state-ownedcorporation|14.69%||140,353,583||||
|Tailun Textile Co., Ltd.||Foreigncorporation|12.37%||118,232,400|118,232,400|||
|Central Huijin Investment Co., Ltd.||State-ownedcorporation|2.13%||20,315,300||||
|T.ROWE PRICE INTL DISCOVERY FUND||Foreigncorporation|2.09%||19,948,219||||
|CHINA SECURITIES FINANCECORPORATION LIMITED||State-ownedcorporation|1.64%||15,679,091||||
|LYNAS ASIA FUND||Foreigncorporation|1.51%||14,413,375||||
|FIRST STATE INVESTMENTSICVC-FIRST STATE GREATER CHINAGROWTH FUND||Foreigncorporation|1.12%||10,714,368||||
|HUA AN NEW SILK ROAD THEMEEQUITY SECURITIES INVESTMENTFUND||Domesticnon-state-ownedcorporation|1.06%||10,110,000||||
|VALUE PARTNERS CLASSIC FUND||Foreign|0.85%||8,156,383||||

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||corporation||||||
|First State China A Share Fund|Foreigncorporation||0.82%|7,881,381|||
|Shareholdings of top ten non-restricted shareholders|||||||
|||Number of|||Variety of shares||
|Name of shareholder||non-restricted shares|||||
||||||Variety|Number|
|||held|||||
|Zibo Lucheng Textile Investment Co., Ltd.||140,353,583|||RMB common shares|140,353,583|
|Central Huijin Investment Co., Ltd.||20,315,300|||RMB common shares|20,315,300|
|T.ROWE PRICE INTL DISCOVERY FUND||19,948,219|||Domestically listed||
|||||||19,948,219|
||||||foreign shares||
|CHINA SECURITIES FINANCE CORPORATION LIMITED||15,679,091|||RMB common shares|15,679,091|
|LYNAS ASIA FUND||14,413,375|||Domestically listed||
|||||||14,413,375|
||||||foreign shares||
|FIRST STATE INVESTMENTS ICVC-FIRST STATEGREATER CHINA GROWTH FUND||10,714,368|||Domestically listed||
|||||||10,714,368|
||||||foreign shares||
|HUA AN NEW SILK ROAD THEME EQUITY SECURITIESINVESTMENT FUND||10,110,000|||||
||||||RMB common shares|10,110,000|
|VALUE PARTNERS CLASSIC FUND||8,156,383|||Domestically listed||
|||||||8,156,383|
||||||foreign shares||
|First State China A Share Fund||7,881,381|||RMB common shares|7,881,381|
|HTHK-MANULIFE CHINA VALUE FUND||6,858,138|||Domestically listed||
|||||||6,858,138|
||||||foreign shares||
|||Zibo Lucheng Textile Investment Co., Ltd. is the largest|||||
|||shareholder of the Company and the actual controller. Tailun|||||
|||(Thailand) Textile Co., Ltd. is the second largest shareholder as|||||
|Related or acting-in-concert parties among the above||well as sponsor of foreign capital of the Company. All of other|||||
|shareholders||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 common shareholders conducting securities margin|||||||
|||N/A|||||
|trading (if any)|||||||

Did any of the top ten common shareholders or the top ten non-restricted common shareholders of the Company conduct any promissory repo during the Reporting Period?
□ Yea√ No
No such cases in the Reporting Period.
Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd. 2. Total number of preference shareholders and shareholdings of the top ten of them
□ Applicable√ Not applicable
Section III Significant Events
I Changes in major accounting statement items and financial indicators for the Reporting Period, as well as reasons for such changes
√ Applicable□ Not applicable
(1) Notes receivable stood at RMB87,564,218.01 on 31 March 2016, down34.23% from the opening amount, mainly because letters of credit became due.
(2) Interest receivable stood at RMB0.00 on 31 March 2016, down100.00% from the opening amount, mainly because savings became due and interest was collected.
(3) Other accounts receivable stood at RMB44,055,162.39 on 31 March 2016, down37.79% from the opening amount, mainly because export rebates were received.
(4) Engineering materials stood at RMB19,909,444.99 on 31 March 2016, up215.03% from the opening amount, mainly because equipment to be installed increased.
(5) Other non-current assets stood at RMB47,372,488.77 on 31 March 2016, up37.30% from the opening amount, mainly because prepayments for equipment increased.
(6) Financial liabilities measured at fair value with fair value changes charged to the current profit and loss stood at RMB19,928,030.00 on 31 March 2016, down57.32% from the opening amount, mainly because financial liabilities became due and loss on the fair value changes decreased. (7) Payroll payable stood at RMB181,404,630.78 on 31 March 2016, down37.72% from the opening amount, mainly because the year-end bonuses for employees for 2015 were paid in the current period.
(8) Interest payable stood at RMB988,920.36 on 31 March 2016, down46.60% from the opening amount, mainly because interest payable decreased.
(9) Treasury shares stood at RMB131,096,061.14 on 31 March 2016, up1029.09% from the opening amount, mainly because repurchased shares increased.
(10) Asset impairment loss stood at RMB-870,101.65 for January-March 2016, down175.08% from the same period of last year, mainly because accounts receivable decreased.
(11) Profit on fair value changes stood at RMB21,750,839.63 for January-March 2016, up281.23% from the same period of last year, mainly because of the profit on fair value changes in due financial liabilities and the fair value changes in the current period.
(12) Investment profit stood at RMB-17,050,096.30 for January-March 2016, down225.14% from the same period of last year, mainly because loss on investment in financial derivative instruments increased.
(13) Non-operating income stood at RMB8,337,965.06 for January-March 2016, up73.10% from the same period of last year, mainly because governmental subsidies increased.
Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd. II Progress of significant events and analysis& explanations on their influence and solutions√ Applicable□ Not applicable
On 5 August 2015, the Company held the 2015 1st Extraordinary General Meeting, which reviewed and approved the Proposal on Repurchasing Part of the Share A and Share B of the Company, and had published the Report about Repurchasing Part of the Share A and Share B of the Company on 10 October 2015 and as for the details of the above, please refer to the announcement of the Company (No.: 2015-029) and the report about repurchasing the shares that respectively diclosed on www.cninfo.com.cn on 6 August 2015 and 10 October 2015. The Company began to execute the repurchase proposal since 10 November 2015 and up to 31 March 2016, the Company had accumulatively repurchased the Share B of 15,318,707 shares and as for the detailed situation, please refer to the announcement of the Company (No.: 2016-016) that disclosed on www.cninfo.com.cn on 6 April 2016.
||||
|-|-|-|
|||Index to the relevant announcement disclosed on|
|Overview of the significant event|Date of disclosure||
|||the website|
|On 5 August 2015, the Company held the 2015 1stExtraordinary General Meeting, which reviewed andapproved the Proposal on Repurchasing Part of the Share Aand Share B of the Company, and had published the Reportabout Repurchasing Part of the Share A and Share B of theCompany on 10 October 2015 and as for the details of theabove, please refer to the announcement of the Company(No.: 2015-029) and the report about repurchasing theshares that respectively diclosed on www.cninfo.com.cn on6 August 2015 and 10 October 2015. The Company beganto execute the repurchase proposal since 10 November 2015and up to 31 March 2016, the Company had accumulativelyrepurchased the Share B of 15,318,707 shares and as for thedetailed situation, please refer to the announcement of theCompany (No.: 2016-016) that disclosed onwww.cninfo.com.cn on 6 April 2016.||Announcement on the Resolution of the 2015 1st|
||6 Aug. 2015|Extraordinary General Meeting (No.: 2015-029),|
|||which disclosed on http://www.cninfo.com.cn|
|||Report about Repurchasing Part of the Share A|
||10 Oct. 2015|and Share B of the Company, which disclosed on|
|||http://www.cninfo.com.cn|
|||Announcement on the Execution of|
||11 Nov. 2015|Repurchasing the Shares (No.: 2015-047), which|
|||disclosed on http://www.cninfo.com.cn|
|||Announcement on the Progress of Repurchasing|
||6 Apr. 2016|the Shares (No.: 2016-016), which disclosed on|
|||http://www.cninfo.com.cn|

III Commitments of the Company, its shareholders, actual controller, acquirer, directors, supervisors, senior management or other related parties fulfilled in the Reporting Period or ongoing at the period-end
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||||Date of|||
||Commitment|Type of|||Term of||
|Commitment|||Contents|commitment||Fulfillment|
||maker|commitment|||commitment||
|||||making|||
|Commitments made in share reform|||||||
|Commitments made in acquisition|||||||
|documents or shareholding alteration|||||||
|documents|||||||
|Commitments made in time of asset|||||||

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|restructuring|||||||
|Commitments made in time of IPO or|||||||
|refinancing|||||||
|Commitments concerning stock|||||||
|ownership incentive|||||||
||||The biggest|||The major|
||||shareholder|||shareholder Zibo|
||||Zibo Lucheng|||Lucheng Textile|
||||Textile|||Investment Co.,|
||||Investment Co.,|||Ltd. and the|
||||Ltd. and the|||directors,|
||Zibo Lucheng||||||
||||directors,|||supervisors as|
||Textile||||||
||||supervisors and|||well as senior|
||Investment||||||
|||Other|senior||10 Jul. 2015|executives of|
|Other commitments made to minority|Co., Ltd. and||||||
|||commitment|executives|10 Jul. 2015|to 10 Jan.|which had not|
|shareholders|the directors,||||||
|||s|committed that||2016|decreased the|
||supervisors||||||
||||the shares of the|||shareholding of|
||and senior||||||
||||Company held|||the Company|
||executives||||||
||||by them would|||from 10 Jul.|
||||not be|||2015 to 10 Jan.|
||||decreased from|||2016. The|
||||10 Jul. 2015 to|||commitment had|
||||the future six|||completed the|
||||months|||execution.|
|Executed on time|Yes||||||
|Specific reasons for failing to fulfill|||||||
|commitments on time and plans for|N/A||||||
|next step|||||||

IV Operating result forecast for January-June 2016
Forecast of a possible deficit or considerable YoY change in the accumulative net profit made during the period from the beginning of the year to the end of the next reporting period, as well as explanation of why:
□ Applicable√ Not applicable
V Securities investments
√ Applicable□ Not applicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Variet||||||Closing|||||Sour|
||Code of||Initial||Opening||Closing|||||
|y of||Name of||Opening|sharehol||||Profit/loss in|Accountin|ce of|
||securitie||investment cost|number of|ding|snumber of|hareh|Closing book|the Reporting|||
|securit||securities|||||olding|value (RMB)||g title|secu|
||s||(RMB)|shares held|percenta|shares held|percen||Period (RMB)|||
|ies|||||ge||||||rities|
||||||||tage|||||

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Tradable||
||||||||||||Buy-|
|Stock|01788|GTJA|27,521,014.00|12,100,000|0.17%|12,100,000|0.17%|27,425,569.60||financial||
||||||||||||in|
|||||||||||assets||
|||||||||||Tradable||
||||||||||||Buy-|
|Stock|02883|ZHYT|17,255,412.00|2,450,000|0.05%|3,000,000|0.06%|15,149,394.00|-1,294,179.90|financial||
||||||||||||in|
|||||||||||assets||
|||||||||||Tradable||
||||||||||||Buy-|
|Stock|00980|LHCS|12,625,586.00|3,839,000|0.34%|4,574,000|0.41%|10,138,627.77|-2,443,171.44|financial||
||||||||||||in|
|||||||||||assets||
|||||||||||Tradable||
||||||||||||Buy-|
|Stock|02006|JJJD|9,242,184.00|3,380,000|0.06%|3,380,000|0.06%|8,900,310.64|-309,820.94|financial||
||||||||||||in|
|||||||||||assets||
|||||||||||Tradable||
||||||||||||Buy-|
|Stock|00116|ZSS|3,964,789.00|40,000|0.01%|377,000|0.06%|3,675,602.97|-275,435.65|financial||
||||||||||||in|
|||||||||||assets||
|||||||||||Tradable||
||||||||||||Buy-|
|Stock|01666|TRTKJ|3,190,939.00|300,000|0.02%|300,000|0.02%|3,114,875.40|-64,997.40|financial||
||||||||||||in|
|||||||||||assets||
|||||||||||Tradable||
||||||||||||Buy-|
|Stock|200056|HTB|2,175,792.00|200,000|0.03%|200,000|0.03%|1,906,590.40|-261,656.20|financial||
||||||||||||in|
|||||||||||assets||
|||||||||||Tradable||
||||||||||||Buy-|
|Stock|00525|GSTL|2,750,680.00|850,000|0.01%|500,000|0.01%|1,387,444.50|-293,634.92|financial||
||||||||||||in|
|||||||||||assets||
|||||||||||Tradable||
||||||||||||Buy-|
|Stock|200053|SJDB|830,765.00|50,000|0.02%|50,000|0.02%|684,555.95|-143,327.60|financial||
||||||||||||in|
|||||||||||assets||
|||||||||||Tradable||
||||||||||||Buy-|
|Stock|200058|SSGB|468,272.00|100,000|0.01%|100,000|0.01%|484,147.30|17,499.30|financial||
||||||||||||in|
|||||||||||assets||
|Other securities investment||||||||||||
||||524,000.00|100,000|--|100,000|--|415,816.71|-20,831.92|--|--|
|held at the period-end||||||||||||
|Total|||80,549,433.00|23,409,000|--|24,681,000|--|73,282,935.24|-5,089,556.67|--|--|
|Disclosure date of the||||||||||||
|announcement about the||||||||||||
|board’s consent for the||||||||||||
|securities investment||||||||||||
|Disclosure date of the||||||||||||
|announcement about the||||||||||||
|general meeting’s consent||||||||||||

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
||
|-|
|for the securities investment|
|(if any)|

VI Investment in financial derivatives
√ Applicable□ Not applicable
Unit:RMB’0,000
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Proporti||
|||||||||||||on of||
|||Rela||||||||||closing||
|||||||||Amou||||||
|||||||||||||investme||
|||ted-|Type of|||||||Impair|||Actual|
|||||||||nt|Amount|||nt||
|||part||Initial|||Opening||||Closing|||
||Rela||derivativ||Beginning|Ending||purcha||ment||amount|gain/loss|
|Operator||y|||||||sold in|||||
||||e|investment|||investment|sed inreporti||provisi|investment|in the|in|
||tion|trans|||date|date|||reporting|||||
|||actio|investment|amount|||amount|ng|period|on (ifany)|amount|Company’s|reportingperiod|
|||n or||||||||||||
|||||||||period||||closing||
|||not||||||||||||
|||||||||||||net||
|||||||||||||assets||
|||||||||||||(%)||
||||Forward|||||||||||
|Commer|Non-||exchang|||||||||||
|||||||2016-07-||||||||
|cial|relat|No|e|79,386.21|2015-01-26||79,386.21|18.35|28,157.11|0|51,247.45|7.01%|-915.2|
|||||||18||||||||
|bank|ed||settleme|||||||||||
||||nt|||||||||||
|Commer|Non-|||||||||||||
||||Option|||2016-07-||||||||
|cial|relat|No||104,300|2015-01-23||104,300|0|53,650|0|50,650|6.93%|-782.55|
||||portfolio|||10||||||||
|bank|ed|||||||||||||
|Total||||183,686.21|--|--|183,686.21|18.35|81,807.11|0|101,897.45|13.94%|-1,697.75|
|Capital source for derivative||||||||||||||
|||||Own funds||||||||||
|investment||||||||||||||
|Lawsuit (if applicable)||||No lawsuits||||||||||
|Disclosure date of board||||||||||||||
|announcement on approval of||||2015-04-25||||||||||
|derivative investment (if any)||||||||||||||
|Disclosure date of general||||||||||||||
|meeting announcement on||||||||||||||
|approval of derivative||||||||||||||
|investment (if any)||||||||||||||
|Risk analysis and risk control||||The Company conducted derivatives products transaction in order for hedging. And the forward settlement||||||||||
|measures for derivative||||hedging was operated by installments, with the relevant amount not more than the planned derivatives products||||||||||

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
|||
|-|-|
|products held in reporting|transactions. And all derivatives products transaction was zero-deposit. Meanwhile, the Company had a complete|
|period (including but not|risk control system for sufficient analysis and prevention of possible risks such as risk of laws and regulations,|
|limited to market risk,|credit risk, operation risk and market risk.|
|liquidity risk, credit risk,|1. Risk concerning laws and regulations:|
|operation risk, legal risk, etc.)||
||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 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|
||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.|
||Risk control measures: 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, regulations, the Company’s Articles of Association,|
||the Management Rules for Derivative Investment of Lu Thai Textile Co., Ltd. and the Proposal on the Plan of Lu|
||Thai Textile Co., Ltd. for Derivative Transactions in 2015 approved at the 20th Session of the 7th Board of|
||Directors on 23 Apr. 2015, 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.|
||Risk control measures: 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:|
||Since the RMB exchange rate reform on 8 Nov. 2015, the reform towards a market-based RMB exchange rate|
||regime has stepped into a new stage. In the short run, there is some depreciation pressure on the RMB, but a|
||sharp depreciation is considered unlikely. In the long run, the positive economic fundamentals of China, the large|
||surplus of the current accounts and the faster globalization of the RMB will enable the RMB to remain a strong|

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
|||
|-|-|
||currency. In the near future, the RMB exchange rate is expected to be more flexible with a distinct feature of|
||bidirectional volatility and stable within a rational and balanced range. The forward settlement of exchange and|
||the option business is important derivative product transactions of the Company, which was significantly|
||affected by the exchange rate fluctuation. 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 or option signed by the Company.|
||Risk control measures: Although a more flexible RMB exchange rate and the increased fluctuation range added|
||to the operation difficulty, it provided a certain opportunity. Therefore, the relevant personnel of the Company|
||will actively analyze market changes, carefully operate and hold positive opportunity, so as to try the best to|
||reduce the market risks under the condition of increased market difficulty.|
||1. Up to 31 March 2016, the Company held 32 undue financial derivative product contracts, totaling USD179|
||million, including 17 forward settlement contracts worth USD81 million and 15 foreign exchange option|
|Changes in market prices or||
||contracts worth USD98 million (the latest expiration before July 2016). The financial derivative products above|
|fair value of invested||
||accounted for 13.94% of the closing net assets.|
|derivatives in reporting period||
||2. From January- March 2016, the due financial derivative products of the Company totally equaled to USD121|
|(fair value analysis should||
||million, and the losses generated was RMB16.9775 million. To be specific, the due forward settlement was|
|include specific analysis||
||USD44.5 million, generating loss of RMB9.152 million; the due foreign exchange options equaled to USD76.5|
|methods as well as relevant||
||million, of which USD50.5 million was delivered on time upon satisfaction of the delivery conditions,|
|assumptions and parameters)||
||generating loss of RMB7.8255 million, and USD26 million was undelivered due to dissatisfaction of the delivery|
||conditions.|
|Significant changes in the||
|Company’s accounting policy||
|and specific accounting||
||No significant changes|
|principles for derivatives in||
|reporting period when||
|compared to last 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 advice: We are of the opinion|
|Specific opinion from|that it will strengthen the Company’s competitiveness to use derivative transactions with focus on forward|
|independent directors on the|settlement and purchase as an effective tool to avoid foreign exchange risks, to strengthen the relevant internal|
|Company’s derivatives|control and to carry out the loss and risk prevention measures so as to improve the operation and management. In|
|investment and risk control|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.|

VII Visits paid to the Company in the Reporting Period for purposes of research, communication, interview, etc.
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|Index to main inquiry information|
|2016-03-30|Telephone communication|Institution|The basic situation of the Company|

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd. VIII Illegal provision of guarantees for external parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s funds by the controlling shareholder or its related parties for non-operating purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd. Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by Lu Thai Textile Co., Ltd.
31 March 2016
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|757,125,291.06|795,501,196.07|
|Financial assets measured at fair value with fair value changes|||
||73,282,935.24|71,696,678.70|
|included in the profit and loss for the Reporting Period|||
|Derivative financial assets|||
|Notes receivable|87,564,218.01|133,145,518.39|
|Accounts receivable|242,898,968.12|262,848,042.62|
|Accounts paid in advance|153,556,443.90|196,809,904.13|
|Interest receivable||653,075.08|
|Dividends receivable|||
|Other accounts receivable|44,055,162.39|70,821,406.28|
|Redemptory monetary capital for sale|||
|Inventories|1,850,443,068.61|1,743,963,973.24|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|52,011,125.79|57,391,316.34|
|Total current assets|3,260,937,213.12|3,332,831,110.85|
|Non-current assets:|||
|Loans by mandate and advances granted|67,442,600.00|67,442,600.00|
|Available-for-sale financial assets|||
|Held-to-maturity investments|4,980,998.00|4,980,998.00|
|Long-term accounts receivable|||
|Long-term equity investment|||
|Investing real estate|4,921,961,771.97|4,907,575,469.84|
|Fixed assets|201,483,905.91|205,094,029.50|

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Construction in progress|19,909,444.99|6,319,783.17|
|Engineering materials|||
|Disposal of fixed assets|1,068,865.76|1,177,113.89|
|Production biological assets|||
|Oil-gas assets|369,986,301.37|363,385,986.63|
|Intangible assets|||
|R&D expense|20,613,803.29|20,613,803.29|
|Goodwill|84,305,783.02|85,124,145.25|
|Long-term deferred expenses|59,253,983.84|62,123,091.53|
|Deferred income tax assets|47,372,488.77|34,502,367.27|
|Other non-current assets|5,798,379,946.92|5,758,339,388.37|
|Total of non-current assets|9,059,317,160.04|9,091,170,499.22|
|Total assets|||
|Current liabilities:|869,165,093.98|802,766,318.90|
|Short-term borrowings|19,928,030.00|46,695,875.00|
|Financial liabilities measured at fair value of which changes are|||
|recorded in current profits and losses|||
|Derivative financial liabilities|2,300,000.00|3,109,149.48|
|Notes payable|264,475,432.90|248,570,405.57|
|Accounts payable|89,006,303.92|95,077,531.32|
|Accounts received in advance|181,404,630.78|291,263,599.62|
|Payroll payable|57,191,543.12|80,615,008.14|
|Tax payable|988,920.36|1,851,876.78|
|Interest payable|441,113.64|441,113.64|
|Dividend payable|78,561,029.90|62,514,814.53|
|Other accounts payable|||
|Non-current liabilities due within 1 year|||
|Other current liabilities|||
|Total current liabilities|1,563,462,098.60|1,632,905,692.98|
|Non-current liabilities:|||
|Long-term borrowings|7,970,031.94||
|Long-term payables|||
|Long-term payroll payables|81,499,403.98|81,499,403.98|
|Specific payables|||

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Estimated liabilities|||
|Deferred income|96,307,172.17|96,135,077.91|
|Deferred income tax liabilities|2,180,916.93|2,192,694.35|
|Other non-current liabilities|1,840,000.00|1,840,000.00|
|Total non-current liabilities|189,797,525.02|181,667,176.24|
|Total liabilities|1,753,259,623.62|1,814,572,869.22|
|Owners’ equity:|||
|Share capital|955,758,496.00|955,758,496.00|
|Capital reserves|1,007,146,773.32|1,007,146,166.97|
|Less: Treasury stock|131,096,061.14|11,610,721.68|
|Other comprehensive income|14,852,207.80|17,090,772.31|
|Specific reserves|||
|Surplus reserves|815,648,504.28|815,648,504.28|
|Provisions for general risks|||
|Retained profits|4,203,348,379.91|4,053,079,857.70|
|Total equity attributable to owners of the Company|6,865,658,300.17|6,837,113,075.58|
|Minority interests|440,399,236.25|439,484,554.42|
|Total owners’ equity|7,306,057,536.42|7,276,597,630.00|
|Total liabilities and owners’ equity|9,059,317,160.04|9,091,170,499.22|

 Legal representative: Liu Zibin Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming 2. Balance sheet of the Company
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|358,212,852.99|361,326,403.14|
|Financial assets measured at fair value of which changes|||
|are recorded in current profits and losses|||
|Derivative financial assets|||
|Notes receivable|66,141,481.70|100,449,603.66|
|Accounts receivable|251,935,646.63|235,128,453.94|
|Accounts paid in advance|106,757,033.01|194,884,351.36|
|Interest receivable|||
|Dividend receivable|||

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Other accounts receivable|13,810,189.50|33,540,540.54|
|Inventories|1,305,148,972.22|1,194,474,541.81|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|25,332,530.65|20,665,251.54|
|Total current assets|2,127,338,706.70|2,140,469,145.99|
|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|1,683,749,200.04|1,577,704,740.04|
|Investing real estate|||
|Fixed assets|3,086,129,936.02|3,086,026,962.51|
|Construction in progress|44,807,924.43|47,195,873.42|
|Engineering materials|18,934,121.93|4,752,722.48|
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|229,752,878.60|231,714,546.11|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|52,085,653.51|56,039,573.79|
|Other non-current assets|38,129,486.47|25,733,137.67|
|Total of non-current assets|5,208,871,801.00|5,084,450,156.02|
|Total assets|7,336,210,507.70|7,224,919,302.01|
|Current liabilities:|||
|Short-term borrowings|636,353,507.06|509,321,176.41|
|Financial liabilities measured at fair value of which|||
||17,367,500.00|39,527,800.00|
|changes are recorded in current profits and losses|||
|Derivative financial liabilities|||
|Notes payable|600,000.00|400,000.00|
|Accounts payable|213,677,601.12|156,939,081.65|
|Accounts received in advance|74,434,610.74|52,388,447.07|

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Payroll payable|138,159,972.27|225,146,911.56|
|Tax payable|31,977,367.00|44,647,234.36|
|Interest payable|948,367.87|830,073.23|
|Dividend payable|441,113.64|441,113.64|
|Other accounts payable|34,369,973.68|19,453,519.54|
|Liabilities held for sale|||
|Non-current liabilities due within 1 year|||
|Other current liabilities|||
|Total current liabilities|1,148,330,013.38|1,049,095,357.46|
|Non-current liabilities:|||
|Long-term borrowings|||
|Long-term payables|||
|Long-term payroll payables|81,499,403.98|81,499,403.98|
|Specific payables|||
|Estimated liabilities|||
|Deferred income|62,364,637.31|61,687,374.76|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|143,864,041.29|143,186,778.74|
|Total liabilities|1,292,194,054.67|1,192,282,136.20|
|Owners’ equity:|||
|Share capital|955,758,496.00|955,758,496.00|
|Capital reserves|1,013,499,454.41|1,013,498,848.06|
|Less: Treasury stock|131,096,061.14|11,610,721.68|
|Other comprehensive income|||
|Specific reserves|||
|Surplus reserves|815,648,504.28|815,648,504.28|
|Retained profits|3,390,206,059.48|3,259,342,039.15|
|Total owners’ equity|6,044,016,453.03|6,032,637,165.81|
|Total liabilities and owners’ equity|7,336,210,507.70|7,224,919,302.01|

 3. Consolidated income statement
Unit: RMB Yuan
||||
|-|-|-|
|Item|January-March 2016|January-March 2015|

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|1. Operating revenues|1,282,806,624.05|1,428,557,406.74|
|Including: Sales income|1,282,806,624.05|1,428,557,406.74|
|Interest income|||
|Premium income|||
|Handling charge and commission income|||
|2. Total operating costs|1,104,882,243.72|1,265,704,564.06|
|Including: Cost of sales|875,523,212.12|1,044,182,982.58|
|Business tax and surtaxes|12,382,148.81|13,321,763.49|
|Selling expenses|42,056,002.44|51,797,009.15|
|Administrative expenses|172,095,558.59|152,338,682.02|
|Financial costs|3,695,423.41|2,905,274.94|
|Asset impairment loss|-870,101.65|1,158,851.88|
|Add: Profit/loss on fair value changes (“-” means loss)|21,750,839.63|5,705,400.00|
|Profit/loss on investment (“-” means loss)|-17,050,096.30|13,625,143.33|
|Including: Share of profit in associates and joint|||
|ventures|||
|Foreign exchange profit (“-” means loss)|||
|3. Operating profit (“-” means loss)|182,625,123.66|182,183,386.01|
|Add: Non-operating income|8,337,965.06|4,816,916.15|
|Including: Profit on disposal of non-current assets|12,908.07|367,515.59|
|Less: Non-operating expense|907,387.59|412,123.84|
|Including: Loss on disposal of non-current assets|132,504.33|10,363.14|
|4. Total profit (“-” means loss)|190,055,701.13|186,588,178.32|
|Less: Corporate income tax|38,872,497.09|34,583,647.04|
|5. Net profit (“-” means loss)|151,183,204.04|152,004,531.28|
|Net profit attributable to owners of the Company|150,268,522.21|152,714,080.35|
|Minority shareholders’ income|914,681.83|-709,549.07|
|6. After-tax net amount of other composite income|-2,238,564.51|215,117.44|
|After-tax net amount of other composite income|||
||-2,238,564.51|215,117.44|
|attributable to owners of the Company|||
|6.1 Other composite income that will not be|||
|reclassified into profit and loss|||
|6.1.1 Changes in net liabilities or assets with a|||
|defined benefit plan upon re-measurement|||
|6.1.2 Enjoyable share in other comprehensive|||
|income in investees that cannot be reclassified into profit|||
|and loss under the equity method|||

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|6.2 Other composite income that will be|||
||-2,238,564.51|215,117.44|
|reclassified into profit and loss|||
|6.2.1 Enjoyable share in other composite|||
|income in investees that will be reclassified into profit|||
|and loss under the equity method|||
|6.2.2 Profit and loss on fair value changes of|||
|available-for-sale financial assets|||
|6.2.3 Profit and loss on reclassifying|||
|held-to-maturity investments into available-for-sale|||
|financial assets|||
|6.2.4 Effective hedging profit and loss on cash|||
|flow|||
|6.2.5 Foreign-currency financial statement|||
||-2,238,564.51|215,117.44|
|translation difference|||
|6.2.6 Other|||
|After-tax net amount of other composite income|||
|attributable to minority shareholders|||
|7. Total composite income|148,944,639.53|152,219,648.72|
|Attributable to owners of the Company|148,029,957.70|152,929,197.79|
|Attributable to minority shareholders|914,681.83|-709,549.07|
|8. Earnings per share|||
|8.1 Basic earnings per share|0.16|0.16|
|8.2 Diluted earnings per share|0.16|0.16|

 Where business mergers under the same control occurred in the Reporting Period, net profit achieved by the merged parties before the business mergers was RMB0.00, with the corresponding amount for the same period of last year being RMB0.00.
Legal representative: Liu Zibin Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming 4. Income statement of the Company
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|January-March 2015|
|1. Operating revenues|1,041,199,143.68|1,092,837,005.97|
|Less: Operating costs|741,786,374.54|842,767,486.89|
|Business tax and surtaxes|9,396,186.31|10,401,216.67|
|Selling expenses|19,170,957.71|23,672,458.92|
|Administrative expenses|124,915,990.74|107,394,185.74|
|Financial costs|1,604,951.15|-582,535.37|
|Asset impairment loss|-68,701.41|-965,962.31|

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Add: profit/loss on fair value changes (“-” means loss)|22,160,300.00|5,474,200.00|
|Profit/loss on investment (“-” means loss)|-13,525,100.00|12,628,943.33|
|Including: Income from investment on associates and joint|||
|ventures|||
|2. Operating profit (“-” means loss)|153,028,584.64|128,253,298.76|
|Add: Non-operating income|6,099,909.65|4,528,078.79|
|Including: Profit on disposal of non-current assets||367,515.59|
|Less: Non-operating expense|690,342.86|172,420.29|
|Including: Loss on disposal of non-current assets|68,673.15|10,363.14|
|3. Total profit (“-” means loss)|158,438,151.43|132,608,957.26|
|Less: Corporate income tax|27,574,131.10|21,185,790.55|
|4. Net profit (“-” means loss)|130,864,020.33|111,423,166.71|
|5. After-tax net amount of other composite income|||
|5.1 Other composite income that will not be reclassified into|||
|profit and loss|||
|5.1.1 Changes in net liabilities or assets with a defined benefit|||
|plan upon re-measurement|||
|5.1.2 Enjoyable share in other composite income in investees|||
|that cannot be reclassified into profit and loss under the equity|||
|method|||
|5.2 Other composite income that will be reclassified into profit|||
|and loss|||
|5.2.1 Enjoyable share in other composite income in investees|||
|that will be reclassified into profit and loss under the equity method|||
|5.2.2 Profit and loss on fair value changes of available-for-sale|||
|financial assets|||
|5.2.3 Profit and loss on reclassifying held-to-maturity|||
|investments into available-for-sale financial assets|||
|5.2.4 Effective hedging profit and loss on cash flow|||
|5.2.5 Foreign-currency financial statement translation|||
|difference|||
|5.2.6 Other|||
|6. Total composite income|130,864,020.33|111,423,166.71|
|7. Earnings per share|||
|7.1 Basic earnings per share|0.14|0.12|
|7.2 Diluted earnings per share|0.14|0.12|

5. Consolidated cash flow statement
Unit: RMB
Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Item|January-March 2016|January-March 2015|
|1. Operating cash flow:|||
|Cash received from sale of commodities and rendering of service|1,278,929,580.62|1,409,322,323.45|
|Tax refunds received|52,257,190.85|36,086,459.45|
|Other operating cash received|21,967,477.09|12,607,023.84|
|Subtotal of operating cash inflow|1,353,154,248.56|1,458,015,806.74|
|Cash paid for goods and services|555,862,207.46|925,879,104.51|
|Cash paid to and for employees|460,266,802.62|434,927,450.28|
|Taxes and fares paid|93,712,854.89|119,315,613.30|
|Other operating cash payments|60,054,100.99|75,222,766.17|
|Subtotal of operating cash outflow|1,169,895,965.96|1,555,344,934.26|
|Net operating cash flow|183,258,282.60|-97,329,127.52|
|2. Investment cash flow:|||
|Cash received from retraction of investments|||
|Cash received from return on investments|||
|Net cash received from disposal of fixed assets, intangible assets and|||
||61,480.59|1,209,136.18|
|other long-term assets|||
|Net cash received from disposal of subsidiaries or other business units|||
|Other cash received relating to investment activities|3,114,875.02|14,349,088.60|
|Subtotal of investment cash inflow|3,176,355.61|15,558,224.78|
|Cash paid to acquire fixed assets, intangible assets and other long-term|||
||151,893,510.28|77,688,786.57|
|assets|||
|Cash paid for investment|||
|Net increase amount of the pledge loan|||
|Net cash paid to acquire subsidiaries and other business units|||
|Other investment cash payments|19,737,711.64||
|Subtotal of investment cash outflow|171,631,221.92|77,688,786.57|
|Net investment cash flow|-168,454,866.31|-62,130,561.79|
|3. Financing cash flow:|||
|Cash received from capital contributions|||
|Of which: cash from capital contributions of investment of minority|||
|shareholder of the subsidiary|||
|Cash received as borrowings|548,488,279.74|499,500,745.26|
|Cash received from issuance of bonds|||
|Other financing cash received|29,807,847.03|16,000,000.00|

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Subtotal of financing cash inflow|578,296,126.77|515,500,745.26|
|Repayment of borrowings|474,258,464.63|420,419,094.09|
|Cash paid for interest expenses and distribution of dividends or profit|4,231,003.95|6,336,269.66|
|Of which: cash paid for distribution of dividends or profit to the minority|||
|shareholders by the subsidiary|||
|Other cash payments relating to financing activities|123,932,529.74|61,299,156.00|
|Sub-total of financing cash outflow|602,421,998.32|488,054,519.75|
|Net financing cash flow|-24,125,871.55|27,446,225.51|
|4. Effect of foreign exchange rate changes on cash and cash equivalents|752,272.67|2,953,649.57|
|5. Net increase in cash and cash equivalents|-8,570,182.59|-129,059,814.23|
|Add: Opening balance of cash and cash equivalents|765,695,473.65|649,393,798.30|
|6. Closing balance of cash and cash equivalents|757,125,291.06|520,333,984.07|

 6. Cash flow statement of the Company
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|January-March 2015|
|1. Operating cash flow:|||
|Cash received from sale of commodities and rendering of service|1,030,554,055.06|1,157,272,756.12|
|Tax refunds received|40,236,082.65|32,062,208.83|
|Other operating cash received|6,893,946.59|3,218,883.40|
|Subtotal of operating cash inflow|1,077,684,084.30|1,192,553,848.35|
|Cash paid for goods and services|474,970,450.47|779,155,896.02|
|Cash paid to and for employees|341,902,663.96|327,538,401.62|
|Taxes and fares paid|38,303,825.59|45,531,121.17|
|Other operating cash payments|32,549,009.04|100,393,923.38|
|Subtotal of operating cash outflow|887,725,949.06|1,252,619,342.19|
|Net operating cash flow|189,958,135.24|-60,065,493.84|
|2. Investment cash flow:|||
|Cash received from retraction of investments|||
|Cash received from return on investments|||
|Net cash received from disposal of fixed assets, intangible assets|||
||53,980.59|1,209,136.18|
|and other long-term assets|||
|Net cash received from disposal of subsidiaries or other business|||
|units|||
|Other cash received relating to investment activities|172,839.48|12,999,351.78|
|Subtotal of investment cash inflow|226,820.07|14,208,487.96|

Report for the First Quarter of 2016 of Lu Thai Textile Co., Ltd.
||||
|-|-|-|
|Cash paid to acquire fixed assets, intangible assets and other|||
||74,409,219.69|44,996,274.50|
|long-term assets|||
|Cash paid for investment|106,044,460.00|36,160,983.67|
|Net cash paid to acquire subsidiaries and other business units|||
|Other investment cash payments|14,394,100.00||
|Subtotal of investment cash outflow|194,847,779.69|81,157,258.17|
|Net investment cash flow|-194,620,959.62|-66,948,770.21|
|3. Financing cash flow:|||
|Cash received from capital contributions|||
|Cash received as borrowings|357,544,665.12|256,245,018.34|
|Cash received from issuance of bonds|||
|Other financing cash received|||
|Subtotal of financing cash inflow|357,544,665.12|256,245,018.34|
|Repayment of borrowings|230,361,852.75|98,059,135.07|
|Cash paid for interest expenses and distribution of dividends or|||
||1,968,099.25|1,369,866.44|
|profit|||
|Other cash payments relating to financing activities|123,932,529.74|61,299,156.00|
|Sub-total of financing cash outflow|356,262,481.74|160,728,157.51|
|Net financing cash flow|1,282,183.38|95,516,860.83|
|4. Effect of foreign exchange rate changes on cash and cash|||
||267,090.85|957,466.97|
|equivalents|||
|5. Net increase in cash and cash equivalents|-3,113,550.15|-30,539,936.25|
|Add: Opening balance of cash and cash equivalents|361,326,403.14|249,509,717.93|
|6. Closing balance of cash and cash equivalents|358,212,852.99|218,969,781.68|

 IIAuditor’s report
Is this Report audited?
□ Yes√ No
This Report is not audited.
Chairman of the Board: Liu Zibin
Lu Thai Textile Co., Ltd.
27 April 2016