Lu Thai Textile Co., Ltd. Third Quarter Report 2017 LU THAI TEXTILE CO., LTD.
THIRD QUARTER REPORT 2017
October 2017
Lu Thai Textile Co., Ltd. Third Quarter Report 2017 Part I Important Statements
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”) as well as the directors, supervisors and senior management of Lu Thai Textile Co., Ltd. (the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for any false representation, misleading statements or material omissions in this Report.
All the directors of the Company attended the board meeting for the review of this Report. Liu Zibin, head of the Company, Zhang Hongmei, accounting head for this Report, and Zhang Keming, head of the accounting department (head of accounting) of the Company, hereby guarantee that the financial statements carried in this Report are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Lu Thai Textile Co., Ltd. Third Quarter Report 2017 Part II Company Fundamentals
I Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.
□ Yes√ No
|||||||
|-|-|-|-|-|-|
||September 30, 2017|December 31, 2016||Change||
|Total assets (RMB)|9,519,311,781.79|9,407,103,263.34||1.19%||
|Equity attributable to owners of the parent (RMB)|7,039,665,999.44|6,937,985,729.19||1.47%||
||July-September||January-September|||
|||YoY change|||YoY change|
||2017||2017|||
|Net sales (RMB)|1,631,824,401.03|13.80%|4,622,284,097.46||8.37%|
|Net margin attributable to owners of the parent|197,038,648.01||590,108,629.56|||
|||-16.69%|||1.54%|
|(RMB)||||||
|Net margin attributable to owners of the parent before||||||
||179,229,437.40|-19.60%|564,310,595.85||1.47%|
|exceptional gains and losses (RMB)||||||
|Net cash from operating activities (RMB)|--|--|834,029,908.57||-23.57%|
|Basic earnings per share (RMB/share)|0.21|-16.00%|0.64||3.23%|
|Diluted earnings per share (RMB/share)|0.21|-16.00%|0.64||3.23%|
|Weighted average return on equity (%)|2.83%|-0.72%|8.41%||-0.24%|

 Exceptional gains and losses:
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|Note|
|Gains/Losses on disposal of non-current assets (inclusive of offset asset impairment|||
||1,850,570.54||
|provisions)|||
|Governmental subsidy recorded into current gains/losses (exclusive of|||
|governmental subsidy closely relevant to business events, and quantified according|30,745,322.67||
|to national unified standards)|||
|Gains/Losses on fair value changes of trading financial assets and liabilities &|||
|investment income from disposal of trading financial assets and liabilities as well|||
||3,567,478.35||
|as financial assets available for sale (exclusive of effective hedges related to normal|||
|business operations of the Company)|||
|Non-operating income and expense other than above|555,382.08||
|Less: Income tax effects|5,696,638.90||

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Minority interests effects (after tax)|5,224,081.03||
|Total|25,798,033.71|--|

 Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gains and Losses, or reclassified any exceptional gain/loss item given as an example in the said explanatory announcement as a recurrent gain/loss:
□ Applicable√ Not applicable
No such cases in the Reporting Period.
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End 1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and Shareholdings of Top 10 Shareholders
Unit: share
||||||||||
|-|-|-|-|-|-|-|-|-|
|Total number of common|||Total number of preference shareholders with||||||
||57,584||||||0||
|shareholders at period-end|||resumed voting rights at period-end (if any)||||||
|Top 10 shareholders|||||||||
|||||||Restricted|Pledged or frozen||
||||||Total shares||||
|||Nature of||Shareholding||shares held|shares||
|Name of shareholder|||||held at||||
|||shareholder||percentage||at|||
||||||period-end||Status|Number|
|||||||period-end|||
|Zibo Lucheng Textile Investment Co., Ltd.||Domesticnon-state-ownedcorporation||15.21%|140,353,583||||
|Tailun (Thailand) Textile Co., Ltd.||Foreigncorporation||12.82%|118,232,400|118,232,400|||
|Hong Kong Securities Clearing Co. Ltd||Foreigncorporation||2.71%|25,000,508||||
|Central Huijin Assets Management Co., Ltd.||State-ownedcorporation||2.20%|20,315,300||||
|T.Rowe Price Intl Discovery Fund||Foreigncorporation||2.16%|19,948,219||||
|China Securities Finance Corporation Limited||State-ownedcorporation||1.70%|15,679,091||||
|Hua’an New Silk Road Theme EquitySecurities Investment Fund||DomesticNon-stated-ownedcorporation||1.11%|10,200,000||||
|Hong Kong Monetary Authority －ownfunds||Foreigncorporation||1.08%|9,978,984||||

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
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|-|-|-|-|-|-|-|
|Lynas Asia Fund|Foreigncorporation||0.90%|8,342,900|||
|BNP Paribas－own funds|Foreigncorporation||0.80%|7,777,994|||
|Top 10 non-restricted shareholders|||||||
|||Non-restricted shares held at|||Type of stock||
|Name of shareholder|||||||
|||period-end|||Type|Number|
|Zibo Lucheng Textile Investment Co., Ltd.||140,353,583|||RMB common||
|||||||140,353,583|
||||||stock||
|Hong Kong Securities Clearing Co. Ltd||25,000,508|||RMB common||
|||||||25,000,508|
||||||stock||
|Central Huijin Assets Management Co., Ltd.||20,315,300|||RMB common||
|||||||20,315,300|
||||||stock||
|T.Rowe Price Intl Discovery Fund||19,948,219|||Domestically||
||||||listed stock for|19,948,219|
||||||foreign investors||
|China Securities Finance Corporation Limited||15,679,091|||RMB common||
|||||||15,679,091|
||||||stock||
|Hua’an New Silk Road Theme Equity Securities InvestmentFund||10,200,000|||RMB common||
|||||||10,200,000|
||||||stock||
|Hong Kong Monetary Authority －own funds||9,978,984|||Domestically||
||||||listed stock for|9,978,984|
||||||foreign investors||
|Lynas Asia Fund||8,342,900|||Domestically||
||||||listed stock for|8,342,900|
||||||foreign investors||
|BNP Paribas－own funds||7,777,994|||RMB common||
|||||||7,777,994|
||||||stock||
|RBC Emerging Markets Small Cap Equity Fund||6,785,384|||Domestically||
||||||listed stock for|6,785,384|
||||||foreign investors||
|||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|||||
|||well as sponsor of foreign capital of the Company. All of other|||||
|Related or acting-in-concert parties among shareholders above|||||||
|||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.|||||

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
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|-|-|
|Top 10 common shareholders conducting securities margin||
||Naught|
|trading (if any)||

Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea√ No
No such cases in the Reporting Period.
2. Total Number of Preference Shareholders and Shareholdings of Top 10 of Them at Period-End
□ Applicable√ Not applicable
Lu Thai Textile Co., Ltd. Third Quarter Report 2017 Part III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes√ Applicable□ Not applicable
(1) Construction in progress increased91.17% from the December 31, 2016 amount to RMB295,683,932.33 on September 30, 2017, due primarily to new construction projects of Xinsheng Thermal Power and Xinjiang Lu Thai Textile arising in the period January through September 2017.
(2) Financial liabilities at fair value through gains/losses increased100.00% from the December 31, 2016 amount to RMB796,400.00 on September 30, 2017, due primarily to increase in trading financial liabilities.
(3) Notes payable increased100.00% from the December 31, 2016 amount to RMB5,850,646.86 on September 30, 2017, due primarily to increase in trade acceptance bills payable.
(4) Taxes payable decreased34.09% from the December 31, 2016 amount to RMB50,890,407.93 on September 30, 2017, due primarily to decrease in income taxes and urban maintenance tax payable.
(5) Non-current liabilities due within one year increased100.00% from the December 31, 2016 amount to RMB135,950,175.68 on September 30, 2017, due primarily to the reclassification of long-term borrowings that became due within one year in the period January through September 2017.
(6) Long-term borrowings decreased100.00% from the December 31, 2016 amount to RMB0.00 on September 30, 2017, due primarily to the reclassification of long-term borrowings that became due within one year as non-current liabilities due within one year in the period January through September 2017.
(7) Other comprehensive income decreased50.98% from the December 31, 2016 amount to RMB26,122,877.09 on September 30, 2017, due primarily to lower income from translation of foreignsubsidiaries’ financial statements presented in foreign currencies. (8) The year-over-year increase of80.99% in taxes and surtaxes to RMB73,695,429.20 during the period January through September 2017 primarily resulted from the reclassification of the taxes sub-item under the administrative expense item as taxes and surtaxes as per Financial Accounting Document[2016] No.22—Value Added Tax Accounting Rules during the period January through September 2017.
(9) The year-over-year increase of69.11% in finance costs to RMB44,572,889.12 during the period January through September 2017 primarily resulted from greater foreign exchange losses.
(10) The year-over-year decrease of30.54% in asset impairment losses to RMB3,350,210.60 during the period January through September 2017 primarily resulted from a lower amount of inventory valuation allowances.
(11) The year-over-year decrease of101.72% in gains on fair value changes to RMB-796,400.00 during the period January through September 2017 primarily resulted from lower income from changes in the fair value of financial liabilities.
(12) The year-over-year increase of111.18% in investment income to RMB4,803,678.35 during the period January through September 2017 primarily resulted from greater gains on derivative financial instruments invested in.
(13) The year-over-year increase of100.00% in other income to RMB30,565,322.67 during the period January through September 2017 primarily resulted from the reclassification of government subsidies arising from theCompany’s ordinary course of business (originally under non-operating income) as other income as per Accounting Standard No. 16 for BusinessEnterprises—Government Subsidies.
(14) The year-over-year decrease of-70.64% in non-operating income to RMB9,846,350.62 during the period January through September 2017 primarily resulted from the reclassification of government subsidies arising from theCompany’s ordinary course of
Lu Thai Textile Co., Ltd. Third Quarter Report 2017 business (originally under non-operating income) as other income as per Accounting Standard No. 16 for BusinessEnterprises—Government Subsidies.
(15) The year-over-year decrease of-41.52% in non-operating expense to RMB7,260,398.00 during the period January through September 2017 primarily resulted from decreased losses on disposal of non-current assets.
II Progress, Influence and Solutions Associated with Significant Events
□ Applicable√ Not applicable
III Commitments that theCompany’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time during Reporting Period
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in accumulative net margin during the period the beginning of the current year through the end of the next reporting period, as well as the reasons:
□ Applicable√ Not applicable
V Securities Investments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
√ Applicable□ Not applicable
Unit: RMB'0,000
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Proportion||
|||Relate|||||Openi||||Closin|||
|||||||||||Impair||of closing|Actual|
|||||Initial||||Amount||||||
|||d-part|Type of||||ng||Amount sold||g|investment||
||Relati||||Beginning|||||ment|||gain/loss|
|Operator||y||investme||Ending date|invest|purchased in|||invest|amount in||
||||derivative||||||in Reporting|provisi|||in|
||on|transac||nt|date||ment|Reporting|||ment|the||
|||tion or|investment|amount|||amou|Period|Period|on (if|amoun|Company’s|Reportin|
|||||||||||any)|||g Period|
|||not|||||nt||||t|closing net||
|||||||||||||assets (%)||
|Commer|||Forward|||||||||||
||Non-re|No||0|01/19/2017|09/29/2017|0|107,579.8|107,579.8||0||413.63|
|cial|||exchange|||||||||||

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
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|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|bank|lated||settlement|||||||||||
|Commer|||Foreign|||||||||||
||Non-re|||||||||||||
|cial||No|exchange|0|01/03/2017|09/05/2017|0|58,953.81|41,953.81||17,000|2.26%|25.49|
||lated|||||||||||||
|bank|||option|||||||||||
||||Forward|||||||||||
|Commer||||||||||||||
||Non-re||exchange|||||||||||
|cial||No||0|05/22/2017|07/14/2017|0|8,379.84|8,379.84||0||-7.49|
||lated||transaction|||||||||||
|bank||||||||||||||
||||s|||||||||||
|Commer|||Foreign|||||||||||
||Non-re|||||||||||||
|cial||No|exchange|0|06/20/2017|06/30/2017|0|12,937.1|12,937.1||0||4.76|
||lated|||||||||||||
|bank|||swap|||||||||||
|Total||||0|--|--|0|187,850.55|170,850.55|0|17,000|2.26%|436.39|
|Capital source for derivative||||||||||||||
|||||Own funds||||||||||
|investment||||||||||||||
|Lawsuit (if applicable)||||Naught||||||||||
|Disclosure date of board of directors||||||||||||||
|announcement on approval of||||04/28/2017||||||||||
|derivative investment (if any)||||||||||||||
|Disclosure date of general meeting||||||||||||||
|of shareholders announcement on||||||||||||||
|approval of 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 concerning laws and regulations:||||||||||
|||||The Company conducted derivatives products transaction in strict accordance with relevant laws and rules as||||||||||
|Analysis on risks and control||||||||||||||
|||||well as regulatory policies from government securities regulatory authorities, if there were no standard||||||||||
|measures of derivative products||||||||||||||
|||||operation procedures and strict approval procedures, it was easy to cause compliant and regulatory risks||||||||||
|held in the Reporting Period||||||||||||||
|||||existing in the validity and feasibility of contract, commitments and other legal documents signed. Risk control||||||||||
|(including but not limited to market||||||||||||||
|||||measures: The Company carefully studied and mastered laws, regulations and policies relevant to derivative||||||||||
|risk, liquidity risk, credit risk,||||||||||||||
|||||products transaction, formulated internal control rules for the forward settlement hedging business,||||||||||
|operation risk, law risk, etc.)||||||||||||||
|||||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||||||||||

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
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|-|-|
||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 the Company for Derivative|
||Transactions approved at the 7th Session of the 8th Board of Directors on April 26, 2017, 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 two years of "8•11 exchange rate reform", the central parity of RMB against US dollar|
||gradually formed the current price mechanism of "closing price + overnight basket of currency changes +|
||reverse cycle adjustment factor". The central parity has played a very good role in Price guideline, and the|
||effect of exchange rate reform is remarkable. In the short term, China's economy has gradually stabilized and|
||maintained high-speed growth. The internationalization of RMB is steadily advancing. Therefore, the RMB|
||exchange rate has neither the basis for devaluation nor the need for devaluation. In the long run, the dollar|
||index, customer trading behavior and market makers expectations are still key factors determining the future of|
||RMB exchange rate. In the future, the RMB exchange rate elasticity will increase, and the two-way fluctuation|
||will be obvious. Forward settlement and option business, which are greatly affected by exchange rate|
||fluctuations, are important derivatives transactions of 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.|
|Changes of market prices or fair|1. As of September 30, 2017, the Company held 7 undue financial derivatives contracts, with a total of USD26|
|values in the Reporting Period of|million. The latest contract period will end in November 2017. Financial derivatives accounted for 2.26% of|
|the invested derivatives. And the|the Company’s consolidated net assets at the end of the Reporting Period.|
|analysis on the fair value of the|2. During the period January through September 2017, the amount of the Company's due financial derivatives|
|derivatives should include the|was equivalent to USD253,489,300, with proceeds of RMB4,363,900, of which due forward forex settlements|
|specific use methods and the|amounted to USD157,881,800, with proceeds of RMB4,136,300; mature foreign exchange transactions were|
|relevant assumptions and|equivalent to USD12,307,500, with a loss of RMB74,900; mature foreign exchange swaps amounted to|
|parameters.|USD19 million, with proceeds of RMB47,600; and mature foreign currency options amounted to USD64.3|

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
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|-|-|
||million, with proceeds of RMB254,900 after execution of contracts.|
|Whether significant changes||
|occurred to the Company’s||
|accounting policy and specific||
||No significant changes|
|accounting principles of derivatives||
|in the Reporting Period compared to||
|the previous Reporting Period||
||The Company’s independent directors Xu Jianjun, Zhao Yao, Bi Xiuli, Pan Ailing and Wang Xinyu,|
||concerning conducting derivatives business, have issued the following professional advice: We are of the|
|Specific opinion from independent|opinion that it will strengthen the Company’s competitiveness to use derivative transactions with focus on|
|directors on the Company’s|forward settlement and purchase as an effective tool to avoid foreign exchange risks, to strengthen the relevant|
|derivatives investment and risk|internal control and to carry out the loss and risk prevention measures so as to improve the operation and|
|control|management. In conducting derivative transactions with focus on forward settlement and purchase, the|
||Company follows a legal approval procedure, has sound relevant institutions and keeps the risks relatively|
||controllable. No harm has been done to the interests of the Company’s shareholders.|

VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc. during Reporting Period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|About|
|08/30/2017|By phone|Institution|Company fundamentals|

 VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s Funds by Its Controlling Shareholder or Related Parties for Non-Operating Purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
The Company did not take such measures in the third quarter of the year and has no such plans for now.
Lu Thai Textile Co., Ltd. Third Quarter Report 2017 Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Lu Thai Textile Co., Ltd.
September 30, 2017
Unit: RMB
||||
|-|-|-|
|Item|September 30, 2017|December 31, 2016|
|Current assets:|||
|Cash on hand and at bank|664,007,740.98|662,967,785.49|
|Derivative financial assets|||
|Notes receivable|65,749,428.30|84,161,909.91|
|Accounts receivable|304,887,703.37|293,129,727.93|
|Prepayments|152,861,983.08|212,487,501.51|
|Dividends receivable|||
|Other accounts receivable|34,474,400.36|46,262,835.47|
|Financial assets purchased under agreements to resell|||
|Inventories|1,890,682,210.49|1,816,700,441.85|
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets|109,072,780.47|107,535,889.38|
|Total current assets|3,221,736,247.05|3,223,246,091.54|
|Non-current assets:|||
|Available-for-sale financial assets|24,660,000.00|24,660,000.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|2,310,000.00|2,310,000.00|
|Long-term equity investments|||
|Investment property|24,880,799.48|25,844,090.56|
|Fixed assets|5,093,113,348.63|5,244,335,459.80|
|Construction in progress|295,683,932.33|154,668,358.96|
|Engineering materials|143,497,488.76|117,120,463.50|
|Disposal of fixed assets|||
|Productive living assets|1,314,468.02|1,381,292.75|

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
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|-|-|-|
|Intangible assets|478,132,427.97|384,253,077.39|
|R&D expense|||
|Goodwill|20,613,803.29|20,613,803.29|
|Long-term deferred expense|109,049,747.27|114,227,364.54|
|Deferred income tax assets|65,472,398.37|63,183,792.63|
|Other non-current assets|38,847,120.62|31,259,468.38|
|Total non-current assets|6,297,575,534.74|6,183,857,171.80|
|Total assets|9,519,311,781.79|9,407,103,263.34|
|Current liabilities:|||
|Short-term borrowings|910,686,491.89|873,261,856.02|
|Financial liabilities at fair value through gains/losses|796,400.00||
|Derivative financial liabilities|||
|Notes payable|5,850,646.86||
|Accounts payable|229,123,171.10|252,538,563.06|
|Advances received|103,748,135.51|89,451,314.62|
|Payroll payable|262,209,359.08|315,618,449.91|
|Taxes payable|50,890,407.93|77,214,706.67|
|Interest payable|1,493,933.99|1,165,730.47|
|Dividends payable|441,113.64|441,113.64|
|Other accounts payable|67,489,447.00|69,365,641.15|
|Non-current liabilities due within one year|135,950,175.68||
|Other current liabilities|||
|Total current liabilities|1,768,679,282.68|1,679,057,375.54|
|Non-current liabilities:|||
|Long-term borrowings||135,678,044.89|
|Long-term accounts payable|||
|Long-term payroll payable|97,673,785.15|79,122,422.89|
|Special payables|||
|Provisions|||
|Deferred income|116,197,415.99|95,990,489.79|
|Deferred income tax liabilities|2,223,839.09|2,341,089.87|
|Other non-current liabilities|1,840,000.00|1,840,000.00|
|Total non-current liabilities|217,935,040.23|314,972,047.44|
|Total liabilities|1,986,614,322.91|1,994,029,422.98|

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
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|-|-|-|
|Owners’ equity:|||
|Share capital|922,602,311.00|922,602,311.00|
|Capital reserve|753,484,021.82|753,440,557.83|
|Less: Treasury shares|||
|Other comprehensive income|26,122,877.09|53,293,544.89|
|Special reserve|||
|Surplus reserve|888,761,783.04|888,761,783.04|
|Provisions for general risks|||
|Retained earnings|4,448,695,006.49|4,319,887,532.43|
|Equity attributable to owners of the parent|7,039,665,999.44|6,937,985,729.19|
|Minority interests|493,031,459.44|475,088,111.17|
|Total owners’ equity|7,532,697,458.88|7,413,073,840.36|
|Total liabilities and owners’ equity|9,519,311,781.79|9,407,103,263.34|

 Legal representative: Liu Zibin Accounting head for this Report: Zhang Hongmei
Head of the accounting department: Zhang Keming
2. Parent Company Balance Sheet
Unit: RMB
||||
|-|-|-|
|Item|September 30, 2017|December 31, 2016|
|Current assets:|||
|Cash on hand and at bank|355,862,616.24|177,016,859.63|
|Financial assets at fair value through gains/losses|||
|Derivative financial assets|||
|Notes receivable|42,675,045.56|64,421,665.52|
|Accounts receivable|303,674,683.83|297,026,110.33|
|Prepayments|16,702,256.58|139,013,057.80|
|Interest receivable|||
|Dividends receivable|||
|Other accounts receivable|342,525,340.59|340,458,208.20|
|Inventories|1,234,631,072.97|1,086,364,931.72|
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets|66,326,536.53|1,126,006.88|

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Total current assets|2,362,397,552.30|2,105,426,840.08|
|Non-current assets:|||
|Available-for-sale financial assets|12,500,000.00|12,500,000.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investments|1,718,956,616.04|1,711,021,866.04|
|Investment property|14,319,423.87|14,829,443.58|
|Fixed assets|2,836,580,993.63|3,019,132,803.64|
|Construction in progress|74,083,869.81|25,796,329.33|
|Engineering materials|8,100,222.03|663,894.82|
|Disposal of fixed assets|||
|Productive living assets|||
|Oil-gas assets|||
|Intangible assets|227,427,941.39|229,433,475.02|
|R&D expense|||
|Goodwill|||
|Long-term deferred expense|||
|Deferred income tax assets|58,069,929.44|62,042,513.61|
|Other non-current assets|32,021,313.12|8,831,098.34|
|Total non-current assets|4,982,060,309.33|5,084,251,424.38|
|Total assets|7,344,457,861.63|7,189,678,264.46|
|Current liabilities:|||
|Short-term borrowings|587,762,670.98|503,005,010.24|
|Financial liabilities at fair value through gains/losses|340,500.00||
|Derivative financial liabilities|||
|Notes payable|2,660,000.00||
|Accounts payable|152,492,638.17|158,737,347.81|
|Advances received|62,553,420.18|54,552,285.78|
|Payroll payable|195,928,957.34|240,389,712.34|
|Taxes payable|40,382,668.46|47,790,003.82|
|Interest payable|1,493,933.99|646,147.15|
|Dividends payable|441,113.64|441,113.64|
|Other accounts payable|25,377,074.63|19,309,386.42|
|Liabilities held for sale|||

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Non-current liabilities due within one year|||
|Other current liabilities|||
|Total current liabilities|1,069,432,977.39|1,024,871,007.20|
|Non-current liabilities:|||
|Long-term borrowings|||
|Long-term payables|||
|Long-term payroll payable|97,673,785.15|79,122,422.89|
|Special payables|||
|Provisions|||
|Deferred income|70,101,358.51|62,691,326.97|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|167,775,143.66|141,813,749.86|
|Total liabilities|1,237,208,121.05|1,166,684,757.06|
|Owners’ equity:|||
|Share capital|922,602,311.00|922,602,311.00|
|Capital reserve|759,836,702.91|759,793,238.92|
|Less: Treasury shares|||
|Other comprehensive income|||
|Special reserve|||
|Surplus reserve|888,761,783.04|888,761,783.04|
|Retained earnings|3,536,048,943.63|3,451,836,174.44|
|Total owners’ equity|6,107,249,740.58|6,022,993,507.40|
|Total liabilities and owners’ equity|7,344,457,861.63|7,189,678,264.46|

 3. Consolidated Income Statement for July-September
Unit: RMB
||||
|-|-|-|
|Item|July-September 2017|July-September 2016|
|1. Operating revenue|1,631,824,401.03|1,433,914,063.96|
|Including: Net sales|1,631,824,401.03|1,433,914,063.96|
|2. Operating expenses|1,412,304,915.71|1,150,074,108.90|
|Including: Cost of sales|1,168,416,403.13|931,426,457.61|
|Taxes and surtaxes|22,197,277.47|15,917,689.81|
|Selling expense|36,919,797.86|35,754,052.90|

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Administrative expense|168,529,612.71|153,044,613.01|
|Finance costs|13,877,588.58|6,546,510.69|
|Asset impairment losses|2,364,235.96|7,384,784.88|
|Add: Gains on fair value changes (“-” for losses)|-1,907,100.00|15,450,886.80|
|Investment income (“-” for losses)|2,978,343.01|-9,313,278.13|
|Including: Share of gains/losses of associates and joint ventures|||
|Exchange gains (“-” for losses)|||
|Other income|19,984,685.38||
|3. Operating margin (“-” for losses)|240,575,413.71|289,977,563.73|
|Add: Non-operating income|5,401,592.64|12,347,357.12|
|Including: Gains on disposal of non-current assets|4,964,497.03|343,842.01|
|Less: Non-operating expense|1,340,575.40|4,696,674.72|
|Including: Losses on disposal of non-current assets|1,141,689.35|2,530,749.32|
|4. Gross margin (“-” for losses)|244,636,430.95|297,628,246.13|
|Less: Income tax expense|34,958,315.84|48,157,938.49|
|5. Net margin (“-” for losses)|209,678,115.11|249,470,307.64|
|Attributable to owners of the parent|197,038,648.01|236,519,891.59|
|Attributable to minority interests|12,639,467.10|12,950,416.05|
|6. Other comprehensive income, net of tax|-12,385,575.90|4,893,753.80|
|Other comprehensive income, net of tax attributable to owners of|||
||-12,385,575.90|4,893,753.80|
|the parent|||
|6.1 Other comprehensive income that will not be reclassified|||
|into gains/losses|||
|6.1.1 Changes in net liabilities or assets with a defined benefit|||
|plan upon re-measurement|||
|6.1.2 Share of other comprehensive income of investees that|||
|cannot be reclassified into gains/losses under equity method|||
|6.2 Other comprehensive income to be subsequently reclassified|||
||-12,385,575.90|4,893,753.80|
|into gains/losses|||
|6.2.1 Share of other comprehensive income of investees that|||
|will be reclassified into gains/losses under equity method|||
|6.2.2 Gains/Losses on fair value changes of available-for-sale|||
|financial assets|||
|6.2.3 Gains/Losses on reclassifying held-to-maturity|||
|investments into available-for-sale financial assets|||
|6.2.4 Effective gains/losses on cash flow hedges|||
|6.2.5 Currency translation differences|-12,385,575.90|4,893,753.80|
|6.2.6 Other|||

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Other comprehensive income, net of tax attributable to minority|||
|interests|||
|7. Total comprehensive income|197,292,539.21|254,364,061.44|
|Attributable to owners of the parent|184,653,072.11|241,413,645.39|
|Attributable to minority interests|12,639,467.10|12,950,416.05|
|8. Earnings per share|||
|8.1 Basic earnings per share|0.21|0.25|
|8.2 Diluted earnings per share|0.21|0.25|

 Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Liu Zibin Accounting head for this Report: Zhang Hongmei
Head of the accounting department: Zhang Keming
4. Parent Company Income Statement for July-September
Unit: RMB
||||
|-|-|-|
|Item|July-September 2017|July-September 2016|
|1. Operating revenue|1,303,731,449.01|1,315,386,535.04|
|Less: Operating expenses|961,017,334.09|940,723,865.92|
|Taxes and surtaxes|17,222,805.08|11,201,820.01|
|Selling expense|24,575,700.30|21,763,178.49|
|Administrative expense|113,871,284.77|104,337,849.19|
|Finance costs|5,369,029.33|4,368,954.01|
|Asset impairment losses|-5,188,148.15|6,584,893.25|
|Add: Gains on fair value changes (“-” for losses)|-1,451,200.00|9,735,700.00|
|Investment income (“-” for loss)|2,993,963.01|8,176,633.62|
|Including: Share of gains/losses of associates and joint ventures|||
|Other income|14,886,733.13||
|2. Operating margin (“-” for losses)|203,292,939.73|244,318,307.79|
|Add: Non-operating income|423,329.65|8,870,631.85|
|Including: Gains on disposal of non-current assets|59,955.79|157,408.00|
|Less: Non-operating expense|337,686.69|1,346,406.41|
|Including: Losses on disposal of non-current assets|273,302.41|966,221.16|
|3. Gross margin (“-” for losses)|203,378,582.69|251,842,533.23|
|Less: Income tax expense|31,561,713.67|32,559,112.92|

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|4. Net margin (“-” for losses)|171,816,869.02|219,283,420.31|
|5. Other comprehensive income, net of tax|||
|5.1 Other comprehensive income that will not be reclassified into|||
|gains and losses|||
|5.1.1 Changes in net liabilities or assets with a defined benefit plan|||
|upon re-measurement|||
|5.1.2 Share of other comprehensive income of investees that|||
|cannot be reclassified into gains/losses under equity method|||
|5.2 Other comprehensive income to be subsequently reclassified into|||
|gains/losses|||
|5.2.1 Share of other comprehensive income of investees that will|||
|be reclassified into gains/losses under equity method|||
|5.2.2 Gains/Losses on fair value changes of available-for-sale|||
|financial assets|||
|5.2.3 Gains/Losses on reclassifying held-to-maturity investments|||
|into available-for-sale financial assets|||
|5.2.4 Effective gains/losses on cash flow hedges|||
|5.2.5 Currency translation differences|||
|5.2.6 Other|||
|6. Total comprehensive income|171,816,869.02|219,283,420.31|
|7. Earnings per share|||
|7.1 Basic earnings per share|0.18|0.25|
|7.2 Diluted earnings per share|0.18|0.25|

 5. Consolidated Income Statement for January-September
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|January-September 2016|
|1. Operating revenue|4,622,284,097.46|4,265,240,836.99|
|Including: Net sales|4,622,284,097.46|4,265,240,836.99|
|2. Operating expenses|3,926,259,381.41|3,560,005,447.57|
|Including: Cost of sales|3,218,355,617.76|2,868,826,048.69|
|Taxes and surtaxes|73,695,429.20|40,718,418.33|
|Selling expense|105,285,310.08|124,463,716.40|
|Administrative expense|480,999,924.65|494,816,568.17|
|Finance costs|44,572,889.12|26,357,253.37|
|Asset impairment losses|3,350,210.60|4,823,442.61|
|Add: Gains on fair value changes (“-” for losses)|-796,400.00|46,397,456.20|

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Investment income (“-” for losses)|4,803,678.35|-42,954,499.35|
|Including: Share of gains/losses of associates and joint ventures|||
|Exchange gains (“-” for losses)|||
|Other income|30,565,322.67||
|3. Operating margin (“-” for losses)|730,597,317.07|708,678,346.27|
|Add: Non-operating income|9,846,350.62|33,540,794.44|
|Including: Gains on disposal of non-current assets|5,044,311.76|572,155.31|
|Less: Non-operating expense|7,260,398.00|12,415,314.62|
|Including: Losses on disposal of non-current assets|3,193,741.22|7,942,874.57|
|4. Gross margin (“-” for losses)|733,183,269.69|729,803,826.09|
|Less: Income tax expense|113,607,725.48|137,676,433.01|
|5. Net margin (“-” for losses)|619,575,544.21|592,127,393.08|
|Attributable to owners of the parent|590,108,629.56|581,161,076.32|
|Attributable to minority interests|29,466,914.65|10,966,316.76|
|6. Other comprehensive income, net of tax|-27,170,667.80|17,283,510.42|
|Other comprehensive income, net of tax attributable to owners of the|||
||-27,170,667.80|17,283,510.42|
|parent|||
|6.1 Other comprehensive income that will not be reclassified into|||
|gains/losses|||
|6.1.1 Changes in net liabilities or assets with a defined benefit|||
|plan upon re-measurement|||
|6.1.2 Share of other comprehensive income of investees that|||
|cannot be reclassified into gains/losses under equity method|||
|6.2 Other comprehensive income to be subsequently reclassified|||
||-27,170,667.80|17,283,510.42|
|into gains/losses|||
|6.2.1 Share of other comprehensive income of investees that|||
|will be reclassified into gains/losses under equity method|||
|6.2.2 Gains/Losses on fair value changes of available-for-sale|||
|financial assets|||
|6.2.3 Gains/Losses on reclassifying held-to-maturity|||
|investments into available-for-sale financial assets|||
|6.2.4 Effective gains/losses on cash flow hedges|||
|6.2.5 Currency translation differences|-27,170,667.80|17,283,510.42|
|6.2.6 Other|||
|Other comprehensive income, net of tax attributable to minority|||
|interests|||
|7. Total comprehensive income|592,404,876.41|609,410,903.50|
|Attributable to owners of the parent|562,937,961.76|598,444,586.74|

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Attributable to minority interests|29,466,914.65|10,966,316.76|
|8. Earnings per share|||
|8.1 Basic earnings per share|0.64|0.62|
|8.2 Diluted earnings per share|0.64|0.62|

 Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
6. Parent Company Income Statement for January-September
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|January-September 2016|
|1. Operating revenue|3,786,055,037.81|3,684,048,403.41|
|Less: Operating expenses|2,727,698,358.16|2,635,365,848.72|
|Taxes and surtaxes|54,700,584.26|27,687,609.47|
|Selling expense|67,896,475.33|63,206,677.11|
|Administrative expense|324,306,711.39|344,966,347.49|
|Finance costs|13,738,799.16|21,307,487.42|
|Asset impairment losses|-4,926,016.45|34,867,799.94|
|Add: Gains on fair value changes (“-” for losses)|-340,500.00|39,527,800.00|
|Investment income (“-” for loss)|22,252,360.62|18,551,262.92|
|Including: Share of gains/losses of associates and joint ventures|||
|Other income|20,055,788.46||
|2. Operating margin (“-” for losses)|644,607,775.04|614,725,696.18|
|Add: Non-operating income|2,710,209.13|17,060,151.08|
|Including: Gains on disposal of non-current assets|139,770.52|339,790.68|
|Less: Non-operating expense|4,596,651.72|2,854,467.72|
|Including: Losses on disposal of non-current assets|791,398.32|1,036,036.68|
|3. Gross margin (“-” for losses)|642,721,332.45|628,931,379.54|
|Less: Income tax expense|97,207,407.76|92,329,061.54|
|4. Net margin (“-” for losses)|545,513,924.69|536,602,318.00|
|5. Other comprehensive income, net of tax|||
|5.1 Other comprehensive income that will not be reclassified into gains|||
|and losses|||
|5.1.1 Changes in net liabilities or assets with a defined benefit plan|||
|upon re-measurement|||
|5.1.2 Share of other comprehensive income of investees that cannot|||
|be reclassified into gains/losses under equity method|||

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|5.2 Other comprehensive income to be subsequently reclassified into|||
|gains/losses|||
|5.2.1 Share of other comprehensive income of investees that will be|||
|reclassified into gains/losses under equity method|||
|5.2.2 Gains/Losses on fair value changes of available-for-sale|||
|financial assets|||
|5.2.3 Gains/Losses on reclassifying held-to-maturity investments|||
|into available-for-sale financial assets|||
|5.2.4 Effective gains/losses on cash flow hedges|||
|5.2.5 Currency translation differences|||
|5.2.6 Other|||
|6. Total comprehensive income|545,513,924.69|536,602,318.00|
|7. Earnings per share|||
|7.1 Basic earnings per share|0.59|0.58|
|7.2 Diluted earnings per share|0.59|0.58|

 7. Consolidated Cash Flow Statement for January-September
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|January-September 2016|
|1. Cash generated by or used in operating activities:|||
|Cash generated by sale of commodities and rendering of service|4,572,921,342.11|4,451,363,023.15|
|Tax rebates received|160,047,008.71|165,676,563.92|
|Cash generated by other operating activities|86,665,078.72|57,644,929.87|
|Subtotal of cash generated by operating activities|4,819,633,429.54|4,674,684,516.94|
|Cash paid for goods and services|2,296,716,476.86|1,978,778,368.73|
|Cash paid to and for employees|1,187,553,253.81|1,137,718,925.60|
|Taxes paid|270,659,130.79|281,057,146.80|
|Cash used in other operating activities|230,674,659.51|185,894,867.97|
|Subtotal of cash used in operating activities|3,985,603,520.97|3,583,449,309.10|
|Net cash from operating activities|834,029,908.57|1,091,235,207.84|
|2. Cash generated by or used in investing activities:|||
|Cash generated by disinvestments|||
|Cash received as investment income|439,800.00||
|Net cash generated by disposal of fixed assets, intangible assets and|||
||11,449,301.27|842,448.48|
|other long-term assets|||
|Net cash generated by disposal of subsidiaries or other business units|||

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Cash generated by other investing activities|72,404,070.11|13,887,173.29|
|Subtotal of cash generated by investing activities|84,293,171.38|14,729,621.77|
|Cash paid to acquire fixed assets, intangible assets and other long-term|||
||426,037,743.55|581,218,810.56|
|assets|||
|Cash paid for investments|50,000,000.00||
|Net increase in pledged loans|||
|Net cash paid to acquire subsidiaries and other business units|||
|Cash used in other investing activities||54,534,930.05|
|Subtotal of cash used in investing activities|476,037,743.55|635,753,740.61|
|Net cash from investing activities|-391,744,572.17|-621,024,118.84|
|3. Cash generated by or used in financing activities:|||
|Cash received as capital contributions|500,000.00||
|Including: Cash received from minority shareholder investments by|||
||500,000.00||
|subsidiaries|||
|Cash received as borrowings|1,255,806,409.19|1,634,550,537.14|
|Cash generated by issuance of bonds|||
|Cash generated by other financing activities|13,000,000.00|29,805,722.42|
|Subtotal of cash generated by financing activities|1,269,306,409.19|1,664,356,259.56|
|Repayment of borrowings|1,197,843,204.46|1,550,854,947.76|
|Cash paid for interest expenses and distribution of dividends or profit|491,099,353.46|489,969,687.54|
|Including: dividends or profit paid by subsidiaries to minority interests|||
|Cash used in other financing activities||253,869,811.31|
|Sub-total of cash used in financing activities|1,688,942,557.92|2,294,694,446.61|
|Net cash from financing activities|-419,636,148.73|-630,338,187.05|
|4. Effect of foreign exchange rate changes on cash and cash equivalents|-13,870,445.11|6,874,499.12|
|5. Net increase in cash and cash equivalents|8,778,742.56|-153,252,598.93|
|Add: Opening balance of cash and cash equivalents|654,967,785.49|765,695,473.65|
|6. Closing balance of cash and cash equivalents|663,746,528.05|612,442,874.72|

 8. Parent Company Cash Flow Statement for January-September
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|January-September 2016|
|1. Cash generated by or used in operating activities:|||
|Cash generated by sale of commodities and rendering of service|3,755,654,197.80|3,650,560,016.13|
|Tax rebates received|111,127,591.41|133,011,154.02|

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Cash generated by other operating activities|34,568,683.53|18,157,684.20|
|Subtotal of cash generated by operating activities|3,901,350,472.74|3,801,728,854.35|
|Cash paid for goods and services|2,083,382,104.36|1,659,351,293.65|
|Cash paid to and for employees|850,651,997.04|834,261,504.20|
|Taxes paid|152,018,949.10|134,020,301.87|
|Cash used in other operating activities|116,969,182.67|101,580,257.81|
|Subtotal of cash used in operating activities|3,203,022,233.17|2,729,213,357.53|
|Net cash from operating activities|698,328,239.57|1,072,515,496.82|
|2. Cash generated by or used in investing activities:|||
|Cash generated by disinvestments|||
|Cash received as investment income|17,976,433.62|55,177,682.68|
|Net cash generated by disposal of fixed assets, intangible assets and|||
||1,452,306.27|637,067.58|
|other long-term assets|||
|Net cash generated by disposal of subsidiaries or other business units|||
|Cash generated by other investing activities|299,727,304.86|2,473,750.44|
|Subtotal of cash generated by investing activities|319,156,044.75|58,288,500.70|
|Cash paid to acquire fixed assets, intangible assets and other long-term|||
||69,903,614.65|139,406,268.44|
|assets|||
|Cash paid for investments|57,934,750.00|137,814,270.00|
|Net cash paid to acquire subsidiaries and other business units|||
|Cash used in other investing activities|328,724,000.00|37,432,400.00|
|Subtotal of cash used in investing activities|456,562,364.65|314,652,938.44|
|Net cash from investing activities|-137,406,319.90|-256,364,437.74|
|3. Cash generated by or used in financing activities:|||
|Cash received as capital contributions|||
|Cash received as borrowings|961,360,949.88|1,246,734,806.62|
|Cash generated by issuance of bonds|||
|Cash generated by other financing activities|||
|Subtotal of cash generated by financing activities|961,360,949.88|1,246,734,806.62|
|Repayment of borrowings|873,419,137.33|1,252,422,309.64|
|Cash paid for interest expenses and distribution of dividends or profit|468,208,196.66|472,425,946.46|
|Cash used in other financing activities||430,854,881.31|
|Sub-total of cash used in financing activities|1,341,627,333.99|2,155,703,137.41|
|Net cash from financing activities|-380,266,384.11|-908,968,330.79|
|4. Effect of foreign exchange rate changes on cash and cash equivalents|-1,809,778.95|-1,843,889.67|

Lu Thai Textile Co., Ltd. Third Quarter Report 2017
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|-|-|-|
|5. Net increase in cash and cash equivalents|178,845,756.61|-94,661,161.38|
|Add: Opening balance of cash and cash equivalents|177,016,859.63|361,326,403.14|
|6. Closing balance of cash and cash equivalents|355,862,616.24|266,665,241.76|

 IIAuditor’s Report
Are the Q3 2017 financial statements audited?
□Yes√ No
These financial statements are unaudited.
Board Chairman (signature): Liu Zibin
Lu Thai Textile Co., Ltd.
October 27, 2017