Abstract of the Report for the First Quarter of 2015 of Lu Thai Textile Co., Ltd. Stock code: 000726, 200726 Stock abbreviation: LTA, LTB Announcement No.: 2015-013 Lu Thai Textile Co., Ltd.
Abstract of the Report for the First Quarter of 2015
Section I. Important Reminders
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 Shizhen, company principal, Zhang Hongmei, chief of the accounting work, and Zhang Keming, chief of the accounting organ (chief of accounting), hereby confirm that the financial 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.
Abstract of the Report for the First Quarter of 2015 of Lu Thai Textile Co., Ltd. Section II. Financial Highlights& Change of Shareholders
I. Main accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or correction of any accounting error?
□ Yes√ No
|||||
|-|-|-|-|
||Jan.-Mar. 2015|Jan.-Mar. 2014|+/- (%)|
|Operating revenues (RMB Yuan)|1,428,557,406.74|1,524,854,012.98|-6.32%|
|Net profit attributable to shareholders of the Company (RMB Yuan)|152,714,080.35|213,792,166.20|-28.57%|
|Net profit attributable to shareholders of the Company after|131,929,166.88|227,859,696.84|-42.10%|
|extraordinary gains and losses (RMB Yuan)||||
|Net cash flows from operating activities (RMB Yuan)|-97,329,127.52|55,775,238.83|-274.50%|
|Basic EPS (RMB Yuan/share)|0.16|0.22|-27.27%|
|Diluted EPS (RMB Yuan/share)|0.16|0.22|-27.27%|
|Weighted average ROE (%)|2.29%|3.51%|-1.22%|
||31 Mar. 2015|31 Dec. 2014|+/- (%)|
|Total assets (RMB Yuan)|8,698,973,617.97|8,627,671,393.88|0.83%|
|Net assets attributable to shareholders of the Company (RMB Yuan)|6,741,743,242.88|6,588,772,245.55|2.32%|

 Items and amounts of extraordinary gains and losses
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Mar. 2015|Explanation|
|Gains/losses on the disposal of non-current assets (including the offset part of the asset|||
||357,152.45||
|impairment provisions)|||
|Government grants recognized in the current period, except for those acquired in the|||
|ordinary course of business or granted at certain quotas or amounts according to the|3,086,413.47||
|government’s unified standards|||
|Gains and losses on change in fair value from tradable financial assets and tradable|||
|financial liabilities, as well as investment income from disposal of tradable financial|||
||19,330,543.33||
|assets and tradable financial liabilities and financial assets available for sales except for|||
|effective hedging related with normal businesses of the Company|||
|Non-operating income and expense other than the above|961,226.39||
|Income tax effects|2,701,309.01||
|Minority interests effects (after tax)|249,113.16||
|Total|20,784,913.47|--|

Abstract of the Report for the First Quarter of 2015 of Lu Thai Textile Co., Ltd. Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item□ Applicable√ Inapplicable
No such cases in the reporting period.
II. Total number of shareholders at the period-end and shareholdings of top 10 shareholders 1. Total number of common shareholders at the period-end and shareholdings of top 10 common shareholders
Unit: share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Total number of shareholders at the||||||||||
||75,039|||||||||
|period-end||||||||||
|Shareholdings of top 10 shareholders||||||||||
|||||||||Pledged or frozen||
|||||Sharehol||||||
||||||||Number of|shares||
|||||ding||Number of||||
|Name of shareholder||Nature of shareholder|||||restricted|Status||
|||||percenta||shares held|||Number of|
||||||||shares held|of||
|||||ge|||||shares|
|||||||||shares||
|Zibo Lucheng Textile Investment Co., Ltd.||Domesticnon-state-ownedcorporation||14.69%||140,353,583||||
|||||||||Pledge||
||||||||||26,000,000|
|||||||||d||
|Tailun (Thailand) Textile Co., Ltd.||Foreign corporation||12.37%||118,232,400|118,232,400|||
|DBS VICKERS (HONG KONG) LTD A/CCLIENTS||Foreign corporation||2.74%||26,213,346||||
|LYNAS ASIA FUND||Foreign corporation||1.82%||17,364,475||||
|VALUE PARTNERS HIGH-DIVIDENDSTOCKS FUNDS||Foreign corporation||1.72%||16,411,865||||
|UBS AG||Foreign corporation||1.38%||13,173,194||||
|T.ROWE PRICE INTL DISCOVERY FUND||Foreign corporation||0.91%||8,704,074||||
|First State Investment Management UKLimited－First State China A Share Fund||Foreign corporation||0.90%||8,597,472||||
|VALUE PARTNERS CLASSIC FUND||Foreign corporation||0.85%||8,156,383||||
|NATIONAL WESTMINSTER BANK PLCAS DEP OF FS GREATER CHINAGROWTH FUND||Foreign corporation||0.82%||7,858,094||||
|Shareholdings of top 10 non-restricted common shareholders||||||||||
|Name of shareholder|||Number of||Variety of shares|||||

Abstract of the Report for the First Quarter of 2015 of Lu Thai Textile Co., Ltd.
|||||
|-|-|-|-|
||non-restricted|||
|||Variety|Number|
||common shares held|||
|Zibo Lucheng Textile Investment Co., Ltd.|140,353,583|RMB ordinary shares|140,353,583|
|DBS VICKERS (HONG KONG) LTD A/C CLIENTS|26,213,346|Domestically listed foreign shares|26,213,346|
|LYNAS ASIA FUND|17,364,475|Domestically listed foreign shares|17,364,475|
|VALUE PARTNERS HIGH-DIVIDEND STOCKSFUNDS|16,411,865|||
|||Domestically listed foreign shares|16,411,865|
|UBS AG|13,173,194|RMB ordinary shares|13,173,194|
|T.ROWE PRICE INTL DISCOVERY FUND|8,704,074|Domestically listed foreign shares|8,704,074|
|First State Investment Management UK Limited－First State China A Share Fund|8,597,472|||
|||RMB ordinary shares|8,597,472|
|VALUE PARTNERS CLASSIC FUND|8,156,383|Domestically listed foreign shares|8,156,383|
|NATIONAL WESTMINSTER BANK PLC AS DEPOF FS GREATER CHINA GROWTH FUND|7,858,094|||
|||Domestically listed foreign shares|7,858,094|
|Nan Shan Life Insurance Company, Ltd.|6,872,500|RMB ordinary shares|6,872,500|
||Zibo Lucheng Textile Investment Co., Ltd. is the first largest shareholder of|||
||the Company and also is the actual controlling shareholder. Tailun|||
|Explanation on associated relationship or persons|(Thailand) Textile Co., Ltd. is the foreign sponsor shareholder and is also the|||
|acting in concert among the above-mentioned|second largest shareholder of the Company. All of other shareholders are|||
|shareholders|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 10 common shareholders taking part in securities||||
||N/A|||
|margin trading (if any)||||

Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company conduct any promissory repo during the reporting period?
□ Yea√ No
No such cases in the reporting period.
Section III. Significant Events
I. Significant changes of the major accounting statement items and financial indicators for the reporting period, as well as the reasons for these changes
√ Applicable□ Inapplicable
1. Financial assets measured at fair value with changes recorded into current gains and losses as at
31 Mar. 2015 stood at RMB 2,399,200.00, up100% from the opening amount, mainly because of
changes in the fair value of these financial assets.
2. Prepayments as at 31 Mar. 2015 stood at RMB 262,841,192.20, up50.31% from the opening
Abstract of the Report for the First Quarter of 2015 of Lu Thai Textile Co., Ltd. amount, mainly because prepayments for raw materials increased.
3. Other current assets as at 31 Mar. 2015 stood at RMB 39,572,694.94, up665.83% from the opening amount, mainly because the input VAT and the prepaid income tax to be deducted both increased.
4. Long-term deferred expenses as at 31 Mar. 2015 stood at RMB 42,350,433.78, up49.55% from the opening amount, mainly because the land rental expenses by Lu Thai Cambodia increased. 5. Financial liabilities measured at fair value with changes recorded into current gains and losses as at 31 Mar. 2015 stood at RMB 0.00, down100% from the opening amount, mainly because the financial liabilities were settled and transferred into the gains on fair value changes.
6. Payroll payable as at 31 Mar. 2015 stood at RMB 172,099,833.99, down34.20% from the opening amount, mainly because the year-end bonuses for employees for 2014 were paid in the current period.
7. Taxes and fares payable as at 31 Mar. 2015 stood at RMB 48,499,480.61, down34.51% from the opening amount, mainly because the taxes and fares payable decreased.
8. Interest payable as at 31 Mar. 2015 stood at RMB 872,891.23, up70.70% from the opening amount, mainly because short-term borrowings increased.
9. Long-term payables as at 31 Mar. 2015 stood at RMB 0.00, down100% from the opening amount, mainly because of the payments for electricity and bonds.
10. Business tax and surtaxes for Jan.-Mar. 2015 stood at RMB 13,321,763.49, up64.21% year on year, mainly because the city construction& maintenance tax, the educational surcharges, etc. increased.
11. Financial expenses for Jan.-Mar. 2015 stood at RMB 2,905,274.94, down64.20% year on year, mainly because the exchange gains increased.
12. Asset impairment losses for Jan.-Mar. 2015 stood at RMB 1,158,851.88, up123.31% year on year, mainly because accounts receivable increased.
13. Gains on fair value changes for Jan.-Mar. 2015 stood at RMB 5,705,400.00, up119.81% year on year, mainly because due financial assets were delivered, resulting in the carryover of the previously recognized gain/loss on fair value changes, and the fair value of financial assets changed. 14. Non-operating incomes for Jan.-Mar. 2015 stood at RMB 4,816,916.15, up71.23% year on year, mainly because governmental subsidies increased.
15. Non-operating expense for Jan.-Mar. 2015 stood at RMB 412,123.84, down59.58% year on year, mainly because the losses on disposal of non-current assets decreased.
16. Net cash flows from operating activities for Jan.-Mar. 2015 stood at RMB -97,329,127.52, down274.50% year on year, mainly because the cash received from sale of goods and rendering of services decreased.
II. Progress of significant events and analysis& explanations on their influence and solutions□ Applicable√ Inapplicable
Abstract of the Report for the First Quarter of 2015 of Lu Thai Textile Co., Ltd. III. Commitments made by the Company or any shareholder with a shareholding over5% in the reporting period or such commitments made in previous period and carried down into the reporting period
□ Applicable√ Inapplicable
No such cases in the reporting period.
IV. Predict the operating results of Jan.-Jun. 2015
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin to the end of the next reporting period according to prediction, as well as explanations on the reasons:
□ Applicable√ Inapplicable
V. Securities investments
□ Applicable√ Inapplicable
No such cases in the reporting period.
VI. Shareholdings in other listed companies
□ Applicable√ Inapplicable
No such cases in the reporting period.
VII. Investments in derivatives
√ Applicable□ Inapplicable
Unit: RMB Ten Thousand Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Proportion||
|||Rela||||||||||
|||||||||||of the||
|||ted-||||||Impairm|||Actual|
|||||||||||closing||
|||part|Type of|Initial|||Opening||Closing|||
||Relat||||Beginning|||ent||investment|gain/loss|
|Operator||y||||Ending date||||||
||||derivative|investment|||investment|provisio|investment|amount in|in|
||ion|trans|||date|||||||
||||investment|a mount|||amount|n (if|amount|the|reporting|
|||actio||||||||||
|||||||||any)||Company’|period|
|||n or||||||||||
|||||||||||s closing||
|||not||||||||||
|||||||||||net assets||
||||The|||||||||
||non-a||forward|||||||||
|commerci|||||14 Nov.|||||||
||ssoci|No|foreign|94,519.94||28 Jan. 2015|21,213.88||28,813.35|4.02%|1,246.64|
|al bank|||||2014|||||||
||ate||exchange|||||||||
||||settlement|||||||||

Abstract of the Report for the First Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||non-a||Foreign||||||||
|commerci|||||11 Feb.|30 Mar.|||||
||ssoci|No|exchange|347.96|||0|0||9.02|
|al bank|||||2015|2015|||||
||ate||trading||||||||
||non-a||||||||||
|commerci|||Share opti|||26 Mar.|||||
||ssoci|No||94,930|21 Oct. 2014||31,835|91,747.5|12.80%|106.85|
|al bank|||on group|||2016|||||
||ate||||||||||
|Total||||189,797.9|--|--|53,048.88|120,560.85|16.82%|1,362.51|
|Capital source for derivative|||||||||||
|||||Self-owned funds|||||||
|investment|||||||||||
|Cases involving lawsuit (if|||||||||||
|||||No|||||||
|applicable)|||||||||||
|Disclosure date of the board|||||||||||
|announcement approving the|||||||||||
|||||27 Mar. 2014|||||||
|wealth management entrustment|||||||||||
|(if any)|||||||||||
|Disclosure date of the general|||||||||||
|meeting announcement approving|||||||||||
|the wealth management|||||||||||
|entrustment (if any)|||||||||||
|||||The Company conducted derivatives products transaction in order for hedging. And the forward|||||||
|||||settlement hedging was operated by installments, with the relevant amount not more than the|||||||
|||||planned derivatives products transactions. And all derivatives products transaction was|||||||
|||||zero-deposit. Meanwhile, the Company had a complete risk control system for sufficient|||||||
|||||analysis and prevention of possible risks such as risk of laws and regulations, credit risk,|||||||
|||||operation risk and market risk.|||||||
|||||1. Risk of laws and regulations:|||||||
|||||The Company conducted derivatives products transaction in strict accordance with relevant laws|||||||
|Analysis on risks and control|||||||||||
|||||and rules as well as regulatory policies from government securities regulatory authorities, if|||||||
|measures of derivative products|||||||||||
|||||there were no standard operation procedures and strict approval procedures, it was easy to cause|||||||
|held in the reporting period|||||||||||
|||||compliant and regulatory risks existing in the validity and feasibility of contract, commitments|||||||
|(including but not limited to|||||||||||
|||||and other legal documents signed.|||||||
|market risk, liquidity risk, credit|||||||||||
|||||Precautionary measures: The Company carefully studied and mastered laws, regulations and|||||||
|risk, operation risk, law risk, etc.)|||||||||||
|||||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|||||||

Abstract of the Report for the First Quarter of 2015 of Lu Thai Textile Co., Ltd.
|||
|-|-|
||Company. Precaution measure: the Company chose the powerful financial institutions with good|
||reputation as the counterparty, and signed standard derivative products transaction contract, as|
||well as strictly controlled the credit risk of counterparty. The Company conducted derivative|
||investment transactions according to the relevant approval procedure, which was in line with|
||relevant laws, 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 and the relevant regulations of the Proposal on the|
||2014 Derivative Transactions Plan of Luthai Textile Co., Ltd. and performed relevant|
||information disclosure responsibilities. The Company decided the up limit for the amount of|
||derivative products transaction according to the production and operation scale and the progress|
||of foreign exchange income for the Company, and delivered by phases. It was also possible to|
||use extension of term and other ways to ensure the fulfillment of contract as schedules upon the|
||mature of contract, and wouldn’t cause any loss of credit risk for the Company due to|
||insufficient liquidity or other reasons.|
||3. Operation risk:|
||The derivative financial transactions had high specialty and complexity, so imperfect internal|
||operation procedures, staffs and external events would make the Company to undertake risks|
||during the transaction. Precaution measure: The Company promulgated strict authorization and|
||approval system and perfect regulatory mechanism, fixed the departments, operation procedures|
||and approval procedures system to conduct derivative products transaction, established special|
||risk control positions, implemented strict authorization and post checks and balances system,|
||meanwhile, it improved the overall quality of relevant personnel through strengthening the|
||business training and professional ethics education for them. Besides, it established the System|
||of Reporting the Abnormal Situation Timely, formed an efficient risk management procedures,|
||so as to ensure to lower the operation risks to the maximum.|
||4. Market risk:|
||The forward settlement of exchange is an important derivative products transaction, which was|
||significantly affected by the exchange rate fluctuation due to its large amount. The Central Bank|
||decided to expand the inter-bank spot RMB-dollar trading band from 1% to 2% since 17 Mar.|
||2014, which would increase the difficulty in the operation of forward settlement of exchange.|
||Besides, if the RMB is devalued by a large margin on the basis of the current situation before|
||the contract is due, so then, the larger losses shall incur in the contract on forward settlement of|
||exchange signed by the Company.|
||Risk analysis and precaution measure: Renminbi appreciated significantly compared with that|
||before the exchange rate reform, but Renminbi internationalization would be a long-term goal,|
||which decided that Renminbi would not depreciated significantly. Although the increased|
||fluctuation range added the operation difficulty, it provided a certain opportunity, which|
||required relevant personnel of the Company actively master the market trend, carefully operate|
||and hold positive opportunity, so as to try the best to reduce the market risks under the condition|
||of increased market difficulty.|
|Changes of market prices or fair|1. Up to 31 Mar. 2015, the Company held 31 undue financial derivative product contracts,|
|values in the reporting period of|totaling US$ 203 million, of which there were about 7 forward foreign exchange settlements|
|the invested derivatives. And the|with the total amount of US$ 45 million as well as there were about 24 foreign currency options|

Abstract of the Report for the First Quarter of 2015 of Lu Thai Textile Co., Ltd.
|||
|-|-|
|analysis on the fair value of the|with the total amount of US$ 158 million (the latest expiration before Feb. 2016). The above|
|derivatives should include the|financial derivative products accounted for 16.82% of the closing net assets.|
|specific use methods and the|2. From Jan. 2015 to Mar. 2015, the due financial derivative products of the Company totally|
|relevant assumptions and|equaled to US$ 110.5662 million, which generated a gain of RMB 13.6251 million. The due|
|parameters.|forward settlement was US$ 105 million, which generated a gain of RMB 12.4664 million; the|
||due forward foreign exchange trading amount equaled to US$ 0.5662 million, which generated|
||a gain of RMB 90,200; the due foreign currency options was US$ 5 million, which generated a|
||gain of RMB 1.0685 million.|
|Whether significant changes||
|occurred to the Company’s||
|accounting policy and specific||
|accounting principles of|Unchanged|
|derivatives in the reporting period||
|compared to the previous||
|reporting period||
||The Company’s independent directors Zhou Zhiji, Zhang Chengzhu, Wanglei, Xu Jianjun and|
||Zhao Yao concerning conducting derivatives business, have issued the following professional|
|Specific opinion from|advice: we were of the opinion that it would strengthen the Company’s competitiveness to use|
|independent directors on the|derivative transactions with focus on forward settlement and purchase as an effective tool to|
|Company’s derivatives investment|avoid foreign exchange risks, to strengthen the relevant internal control and to carry out the loss|
|and risk control|and risk prevention measures so as to improve the operation and management. It was considered|
||feasible for the Company to conduct derivative transactions with focus on forward settlement|
||and purchase, and no harm was done to interests of the Company’s shareholders.|

VIII. Researches, visits and interviews received in the reporting period
√ Applicable□ Inapplicable
|||||||
|-|-|-|-|-|-|
||||||Main discussion and|
|Time of|Place of|Way of||||
||||Visitor type|Visitor|materials provided by the|
|reception|reception|reception||||
||||||Company|
|||Telephone||EVERBRIGHT SECURITIES Li Jie,|The Company's current|
|31 Mar. 2015|||Institution|||
|||Communication||Tang Shuangshuang|situation|
|||Telephone|||The Company's current|
|31 Mar. 2015|||Institution|Qilu Securities Han Liping||
|||Communication|||situation|
|||Telephone|||The Company's current|
|31 Mar. 2015|||Institution|Natural arch assets Hu Xin||
|||Communication|||situation|
|||Telephone||Sheng Wan Spiritual Co., Ltd. Liu|The Company's current|
|31 Mar. 2015|||Institution|||
|||Communication||Zongxun|situation|
|||Telephone||JiangHai Securities Self-operation|The Company's current|
|31 Mar. 2015|||Institution|||
|||Communication||Liuhua|situation|
|31 Mar. 2015||Telephone|Institution|Hongdao Investment Ji Wei|The Company's current|

Abstract of the Report for the First Quarter of 2015 of Lu Thai Textile Co., Ltd.
||||||
|-|-|-|-|-|
||Communication|||situation|
||Telephone|||The Company's current|
|31 Mar. 2015||Institution|Chang Xin Assets Huang Wei||
||Communication|||situation|
||Telephone|||The Company's current|
|31 Mar. 2015||Institution|Hui Jie investment Xie Rui||
||Communication|||situation|
||Telephone|||The Company's current|
|31 Mar. 2015||Institution|JD Capital Chen Tao||
||Communication|||situation|
||Telephone|||The Company's current|
|31 Mar. 2015||Institution|Jiangsu Xinye Shao Lei||
||Communication|||situation|
||Telephone|||The Company's current|
|31 Mar. 2015||Institution|Yuan Cheng Investment Zeng Shang||
||Communication|||situation|
||Telephone||Minsheng Tonghui Assets|The Company's current|
|31 Mar. 2015||Institution|||
||Communication||Management Bai Fan|situation|
||Telephone|||The Company's current|
|31 Mar. 2015||Institution|Yin Tai Securities Zeng Liang||
||Communication|||situation|
||Telephone||Shanghai Right Share Xu Wenguang|The Company's current|
|31 Mar. 2015||Institution|||
||Communication||Han Ying|situation|
||Telephone|||The Company's current|
|31 Mar. 2015||Institution|Li Cheng Assets Weng Di||
||Communication|||situation|
||Telephone|||The Company's current|
|31 Mar. 2015||Institution|Zong Yi Run Bang Liang Liang||
||Communication|||situation|
||Telephone|||The Company's current|
|31 Mar. 2015||Institution|Tianfeng Securities Ding Ling Xiao||
||Communication|||situation|
||Telephone|||The Company's current|
|31 Mar. 2015||Institution|Zhong Ou Fund Zhang Bo||
||Communication|||situation|
||Telephone||Bank of China International Information|The Company's current|
|31 Mar. 2015||Institution|||
||Communication||Technology Department Yao Yonghua|situation|
||Telephone|||The Company's current|
|31 Mar. 2015||Institution|Ping An Life Insurance Sui Haiqi||
||Communication|||situation|

Chairman of the Board: Liu Shizhen
Lu Thai Textile Co., Ltd.
25 Apr. 2015