Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd. LUTHAI TEXTILE CO., LTD.
Report for the Third Quarter of 2014
October 2014
Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd. Section I. Important Reminders
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of Luthai Textile Co., Ltd. (hereinafter referred to as “the Company”) warrant that this report is factual, accurate and complete without any false record, misleading statement or material omission. And they shall be jointly and severally liable for that.
Liu Shizhen, company principal, Zhang Hongmei, chief of the accounting work, and Zhang Keming, chief of the accounting organ (chief of accounting), hereby confirm that the Financial Report enclosed in this report is factual, accurate and complete.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.
Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd. Section II. Financial Highlights& Change of Shareholders
I. Major accounting data and financial indexes
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or correction of any accounting error?
□ Yes√ No
||||||||
|-|-|-|-|-|-|-|
||30 Sept. 2014||31 Dec. 2013||Increase/decrease (%)||
|Total assets (RMB Yuan)|8,256,492,624.12||8,411,948,561.49||-1.85%||
|Net assets attributable to shareholders|6,341,390,577.09||5,988,054,133.73||||
||||||5.90%||
|of the Company (RMB Yuan)|||||||
|||YoY increase/decrease||||YoY|
||Jul.-Sept. 2014|||Jan.-Sept. 2014|||
|||(%)||||increase/decrease (%)|
|Operating revenues (RMB Yuan)|1,459,299,125.04|-7.53%||4,573,525,706.66||-1.40%|
|Net profit attributable to shareholders of|233,259,629.65|||710,139,886.58|||
|||-10.27%||||5.03%|
|the Company (RMB Yuan)|||||||
|Net profit attributable to shareholders of|||||||
||195,503,531.60|-14.71%||671,500,090.12||7.58%|
|the Company after extraordinary gains|||||||
|and losses (RMB Yuan)|||||||
|Net cash flows from operating activities||||842,580,637.31|||
||--|--||||-6.18%|
|(RMB Yuan)|||||||
|Basic EPS (RMB Yuan/share)|0.24|-14.29%||0.74||4.23%|
|Diluted EPS (RMB Yuan/share)|0.24|-14.29%||0.74||4.23%|
|Weighted average ROE (%)|3.47%|-1.23%||11.26%||-1.12%|

 Items and amounts of extraordinary gains and losses
√Applicable□Inapplicable
Unit: RMB Yuan
||||
|-|-|-|
||Amount as of Jan.-Sept.||
|Item||Note|
||2014||
|Gains/losses on the disposal of non-current assets (including the offset part of asset|||
||-169,682.02||
|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|52,325,487.57||
|country’s unified standards|||
|Gains and losses on change in fair value from tradable financial assets and tradable|||
|financial liabilities, as well as investment income from disposal of tradable financial|||
||-3,193,498.27||
|assets and tradable financial liabilities and financial assets available for sales, except for|||
|effective hedging related with normal businesses of the Company|||

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|Non-operating incomes and expenses other than the above|2,256,212.58||
|Less: Income tax effects|12,152,676.48||
|Minority interests effects (after tax)|426,046.92||
|Total|38,639,796.46|--|

 Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item□ Applicable√ Inapplicable
There was no such situation of the Company during the reporting period.
II. Total number of shareholders and shareholdings of the top ten shareholders at the period-end
1. Total number of common shareholders and shareholdings of the top ten common shareholders at the period-end
Unit: share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of common||||||||
||85,803|||||||
|shareholders at the period-end||||||||
|Shareholdings of the top ten common shareholders||||||||
||||Shareholdi|||Pledged or frozen||
|||||Number of|Number of|||
|||Nature of|ng|||shares||
|Name of shareholder||||the shares|restricted shares|||
|||shareholder|percentage|||Status of|Number of|
|||||held|held|||
||||(%)|||shares|shares|
|Zibo Lucheng Textile Investment Co., Ltd.||Domesticnon-state-ownedcorporation|14.69%|140,353,583||||
|||||||Pledged|22,727,200|
|Tailun Textile Co., Ltd.||Foreigncorporation|12.37%|118,232,400|118,232,400|||
|DBS VICKERS (HONG KONG) LTDA/CCLIENTS||Foreigncorporation|3.47%|33,158,567||||
|LYNAS ASIA FUND||Foreigncorporation|1.82%|17,364,475||||
|VALUE PARTNERS HIGH-DIVIDENDSTOCKS FUNDS||Foreigncorporation|1.72%|16,411,865||||
|Zibo Lucheng Textile Investment Co., Ltd.||Domesticnon-state-ownedcorporation|0.85%|8,156,383||||
|GUOTAI JUNAN||Foreign|0.80%|7,621,346||||

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|SECURITIES(HONGKONG) LIMITED|corporation||||||
|First State China A share fund|Foreigncorporation|0.79%|7,563,611||||
|HTHK-MANULIFE CHINA VALUEFUND|Foreigncorporation|0.72%|6,858,138||||
|BILL & MELINDA GATESFOUNDATION TRUST|Foreigncorporation|0.60%|5,732,809||||
|Shareholdings of the top ten non-restricted common shareholders|||||||
|||||Number of|Type of shares||
|||||non-restricted|||
|Name of shareholder||||common shares|||
||||||Type|Number|
|||||held at the|||
|||||period-end|||
|Zibo Lucheng Textile Investment Co., Ltd.||||140,353,583|RMB ordinary||
|||||||140,353,583|
||||||share||
|DBS VICKERS (HONG KONG) LTD A/C CLIENTS||||33,158,567|Domestically||
||||||listed foreign|33,158,567|
||||||share||
|LYNAS ASIA FUND||||17,364,475|Domestically||
||||||listed foreign|17,364,475|
||||||share||
|VALUE PARTNERS HIGH-DIVIDEND STOCKS FUNDS||||16,411,865|Domestically||
||||||listed foreign|16,411,865|
||||||share||
|VALUE PARTNERS CLASSIC FUND||||8,156,383|Domestically||
||||||listed foreign|8,156,383|
||||||share||
|GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED||||7,621,346|Domestically||
||||||listed foreign|7,621,346|
||||||share||
|First State China A Share Fund||||7,563,611|RMB ordinary||
|||||||7,563,611|
||||||share||
|HTHK-MANULIFE CHINA VALUE FUND||||6,858,138|Domestically||
||||||listed foreign|6,858,138|
||||||share||
|BILL & MELINDA GATES FOUNDATION TRUST||||5,732,809|RMB ordinary||
|||||||5,732,809|
||||||share||
|Pichon China A Share Investment Fund||||5,586,151|RMB ordinary||
|||||||5,586,151|
||||||share||
|Explanations about associated relationship or concerted action among the||||Zibo Lucheng Textile Investment Co., Ltd. is the|||

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
|||
|-|-|
|above shareholders|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|
||shareholders are people holding circulating A share|
||or circulating B share and the Company is not able to|
||confirm whether there is associated relationship or|
||concerted action among other shareholders.|
|Top ten non-restricted common shareholders taking part in margin financing||
||Naught|
|and securities lending (if any)||

Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company carry out any agreed buy-back in the reporting period?
□ Yes√ No
No shareholder of the Company carried out any agreed buy-back in the reporting period.
2. Total number of preferred share holders and shareholdings of the top ten preferred share holders at the period-end
□ Applicable√ Inapplicable
Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd. Section III. Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes
√ Applicable□ Inapplicable
1. Monetary funds as at 30 Sept. 2014 stood at RMB 537,907,586.72, down38.35% from the year-beginning amount, mainly because raw materials were paid for.
2. Transactional financial assets as at 30 Sept. 2014 stood at RMB 1,973,800.00, down93.41% from the year-beginning amount, mainly because due transactional financial assets were delivered and their fair value changed.
3. Notes receivable as at 30 Sept. 2014 stood at RMB 85,053,825.44, down32.55% from the year-beginning amount, mainly because accounts receivable were collected.
4. Other non-current assets as at 30 Sept. 2014 stood at RMB 8,485,764.14, down75.06% from the year-beginning amount, mainly because the VAT input tax to be deducted decreased.
5. Engineering materials as at 30 Sept. 2014 stood at RMB 234,437,779.64, up1127.78% from the year-beginning amount, mainly because the equipment to be installed increased.
6. Taxes and fares payable as at 30 Sept. 2014 stood at RMB 39,039,228.56, down66.13% from the year-beginning amount, mainly because the city maintenance and construction tax payable, the educational surtax payable, etc. decreased.
7. Interest payable as at 30 Sept. 2014 stood at RMB 2,543,214.96, up69.61% from the year-beginning amount, mainly because the interest provision increased as the borrowings of the Company (without subsidiaries) increased.
8. Non-current liabilities due within 1 year as at 30 Sept. 2014 stood at RMB 27,455,391.71, down67.83% from the year-beginning amount, mainly because the long-term borrowings due within 1 year decreased.
9. Deferred income tax liabilities as at 30 Sept. 2014 stood at RMB 2,370,204.96, down63.81% from the year-beginning amount, mainly because the taxable temporary difference arising from fair value changes of transactional financial assets decreased.
10. Financial expenses for Jan.-Sept. 2014 stood at RMB 10,500,242.50, down72.18% year on year, mainly because the exchange gains increased.
11. Asset impairment loss for Jan.-Sept. 2014 stood at RMB -5,584,318.73, down115.00% year on year, mainly because bad-debt provisions decreased as accounts receivable decreased.
12. Gains on fair value changes for Jan.-Sept. 2014 stood at RMB -27,975,320.00, down528.76% year on year, mainly because due transactional financial assets were disposed and the corresponding gains and losses on fair value changes formerly recognized were carried over, and the fair value of transactional financial assets changed.
13. Non-business expenses for Jan.-Sept. 2014 stood at RMB 4,098,753.25, up95.89% year on year, mainly because the loss on disposal of fixed assets increased.
Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd. II. Progress and influence of significant events, as well as the analysis and explanation on solutions
√ Applicable□ Inapplicable
1. From 12 Dec. 2013 to 31 Dec. 2013, through Securities Exchange System of Shenzhen Stock Exchange, Zibo Lucheng Textile Investment Co., Ltd. increased the current A share (000726) of the Company by centralized competitive trading method, which was of 6,913,189 shares, which were of0.72% of the total share capital of the Company. From 1 Jan. 2014 to 17 Jan. 2014, through Securities Exchange System of Shenzhen Stock Exchange, Zibo Lucheng Textile Investment Co., Ltd. increased the current A share (000726) of the Company by centralized competitive trading method, which was of 4,386,036 shares. Up to 17 Jan. 2014, through Securities Exchange System of Shenzhen Stock Exchange, Zibo Lucheng Textile Investment Co., Ltd. accumulatively increased the current A share (000726) of the Company by centralized competitive trading method, which was of 11,299,225 shares and were of1.18% of the total share capital of the Company. After this time of shareholding increase, the company holds totally 134,613,925 shares of the company accounting for14.03% of totally 955,800,496 shares of the company. For more details, please refer to the related announcements published on Security Times, Shanghai Security News, Ta Kung Pao and www.cninfo.com.cn dated Jan. 18, 2014.
2. On 4 Jun. 2014 and 27 Jun. 2014, through Securities Exchange System of Shenzhen Stock Exchange, Zibo Lucheng Textile Investment Co., Ltd. accumulatively increased the current A share (000726) of the Company by centralized competitive trading method, which was of 5,739,658 shares that was of0.60% of the total share capital of the Company. After the increase, the total stocks of the Company were of 140,353,583 shares that covered14.68% of the total share capital of 955,800,496 shares. For the specific situation of the event, please refer to the relevant announcements disclosed on Securities Times, Shanghai Securities News, Ta Kung Pao and www.cninfo.com.cn on 1 Jul. 2014.
3. On 11 Jun. 2014, the
11th
Session of the
7th
Board of Directors of the Company reviewed and approved the “Proposal on Restricted Stock Granted to Previous Incentive Objects Who Fall through Incentive Requirements” and “Proposal on the Third Unlocking Period of 2011 Plan on Restricted Stock Incentive of Lu Thai Textile Co., Ltd.”. The original incentive targets Gao Hong failed in the 2013 performance assessment, of whom the third unlocking restricted shares of 18,000 shares should not be locked and would be repurchased and written off by the Company; The original incentive targets Yang Jun, Wang Fuye, Yang Zezhi, Zhai Shenbo and Yang Jian had left their position during Aug. 2013 to May 2014, which had not met with the incentive plan of “No. 20 Unlocking Arrangement and Inspection Conditions of Restricted Stocks”. Those 5 people had been granted the whole unlocking stocks which was amounted to 24,000 shares and had be repurchased and written off by the Company. The Company had completed the written off through Shenzhen Branch of CSDC on 26 Aug. 2014 with the total share capital changed into 955,758,496 shares. For the specific situation of the event, please refer to the relevant announcement disclosed on Securities Times, Shanghai Securities News, Ta Kung Pao and www.cninfo.com.cn on 28 Aug. 2014. There were 332 people of the Company met with the conditions of the third period of the incentive plan, which amounted to 4,119,000 shares and had unlocked as well as listed and circulated on 10 Sep. 2014. Please refer to the relevant announcement disclosed on Securities Times, Shanghai Securities News, Ta Kung Pao and www.cninfo.com.cn on 5 Sep. 2014.
||||
|-|-|-|
|||Index to the relevant announcement|
|Overview of the significant event|Date of disclosure||
|||disclosed on the website|
|Through Securities Exchange System ofShenzhen Stock Exchange, the actualcontrolling shareholders accumulatively|18 Jan.2014|www.cninfo.com.cn|
||1 Jul. 2014|www.cninfo.com.cn|

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|increased the current Luthai A share of theCompany by centralized competitive tradingmethod|||
|Purchasing and written off of the equityincentive restricted shares|||
||28 Aug. 2014|www.cninfo.com.cn|
|Unlocking and listing as well as circulatingof the equity incentive restricted shares|||
||5 Sep. 2014|www.cninfo.com.cn|

III. Commitments made by the Company or any shareholder holding over5% of theCompany’s shares in the reporting period or such commitments carried down into the reporting period
√ Applicable□ Inapplicable
|||||||
|-|-|-|-|-|-|
||Commitment|Contents of|Date of|Period of||
|Commitment|||||Execution|
||maker|commitment|commitment|commitment||
|Commitments made in a||||||
||N/A|N/A||N/A|N/A|
|share reform||||||
|Commitments made in|N/A|N/A||||
|acquisition reports or||||||
|report on changes in||||||
|equity||||||
|||||N/A||
|Commitments made at||||||
|the time of assets||||||
|reorganization||||||
|Commitments at the||||||
|time of initial public|N/A|N/A||N/A||
|issuance or re-financing||||||
||||||Investment projects of raised funds|
||||||including project on 150 thousand ingots|
||||||of high-end combed yarn, project on|
||||||production line of 50 thousand ingots of|
||||||two-for-one twisting, project on|
||||||complementing circulating funds of the|
|Other commitments||||||
||Lu Thai|Investment|||company, project on production line of|
|made for medium and||||||
||Textile Co.,|project of|19 Dec. 2008||10 million meters of high-end jacquard|
|small shareholders of||||||
||Ltd.|raised funds|||for female garments have already been|
|the Company||||||
||||||fulfilled. On 18 Oct. 2011, the 3rd|
||||||temporary shareholders’ general meeting|
||||||approved that RMB 140 million raised|
||||||funds of this project were transferred into|
||||||project on increasing 40 million meters|
||||||of high-end yarn-dyed fabric production|

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||||
|-|-|-|-|-|
|||||line. Till the end of the reporting period,|
|||||this project has already been finished.|
|||||And project on network construction of|
|||||brand and marketing is under the|
|||||implementation.|
|Whether commitments|||||
||N/A|N/A|N/A|N/A|
|were fulfilled in time|||||
|Specific reasons of|||||
|unfinished fulfillment|Yes||||
|and further plan|||||
|Commitments made in a|||||
||N/A||||
|share reform|||||

IV. Predict the 2014 annual operating results
Warnings of possible loss or large-margin change of the accumulated net profit made during the period from the beginning of the year to the end of the next reporting period compared with the same period of the last year according to prediction, as well as explanations on the reasons
□Applicable√Inapplicable
V. Securities investment
□Applicable√Inapplicable
The Company was not involved in any securities investment of the reporting period.
Shareholdings in other listed companies
□Applicable√Inapplicable
The Company did not have any shareholding in any other listed company in the reporting period.
VI. Investments in derivatives
√Applicable□Inapplicable
Unit: RMB Ten Thousand Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Proportio||
|||||||||||n of the||
|||Relate||||||||closing||
||||||||||||Actual|
|||d-part||||||Impairme||investmen||
||||Type of|Initial|||Opening||Closing||gain/loss|
||Relatio|y|||Beginning|Ending||nt||t amount||
|Operator|||derivative|investment|||investmen||investmen||in|
||n|transac|||date|date||provision||in the||
||||investment|amount|||t amount||t amount||reporting|
|||tion or||||||(if any)||Company||
||||||||||||period|
|||not||||||||’s closing||
|||||||||||net assets||
|||||||||||(%)||

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||Forward||||||||
|Commerc|Non-rel||settlement||28 Mar.|15 Dec.|||||
|||No||185,198.4|||98,449.79|14,386.63|2.13%|2,457.67|
|ial bank|ated||of||2013|2014|||||
||||exchange||||||||
||||Foreign||||||||
|Commerc|Non-rel|||||22 Dec.|||||
|||No|exchange|26,232.18|6 Jan. 2014||0|1,552.67|0.23%|20.51|
|ial bank|ated|||||2014|||||
||||trading||||||||
|Commerc|Non-rel||Share||31 Jun.|31 Dec.|||||
|||No||4,922||||4,922|0.73%||
|ial bank|ated||option||2014|2014|||||
|Total||||216,352.58|--|--|98,449.79|20,861.3|3.09%|2,478.18|
|Capital source for derivative|||||||||||
|||||Self-owned funds of the Company|||||||
|investment|||||||||||
|Cases involving lawsuit (if|||||||||||
|||||N/A|||||||
|applicable)|||||||||||
|Disclosure date of the board|||||||||||
|announcement approving the||||27 Mar. 2014|||||||
|derivative investment (if any)|||||||||||
|Disclosure date of the general meeting|||||||||||
|announcement approving the|||||||||||
|derivative investment (if any)|||||||||||
|||||The Company conducted derivatives products transaction in order for hedging. And the|||||||
|||||forward settlement hedging was operated by installments, with the relevant amount not|||||||
|||||more than the planned derivatives products transactions. And all derivatives products|||||||
|||||transaction was zero-deposit. Meanwhile, the Company had a complete risk control system|||||||
|||||for sufficient analysis and prevention of possible risks such as risk of laws and regulations,|||||||
|||||credit risk, operation risk and market risk.|||||||
|||||1. Risk of laws and regulations: The Company conducted derivatives products transaction in|||||||
|||||strict accordance with relevant laws and rules as well as regulatory policies from|||||||
|Analysis on risks and control||||government securities regulatory authorities, if there were no standard operation procedures|||||||
|measures of derivative products held||||and strict approval procedures, it was easy to cause compliant and regulatory risks existing|||||||
|in the reporting period (including but||||in the validity and feasibility of contract, commitments and other legal documents signed.|||||||
|not limited to market risk, liquidity||||Precautionary measures: The Company carefully studied and mastered laws, regulations and|||||||
|risk, credit risk, operation risk, law||||policies relevant to derivative products transaction, formulated internal control rules for the|||||||
|risk, etc.)||||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. 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|||||||

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
|||
|-|-|
||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 2013 approved at the 7th Session of the 7th Board of Directors on|
||25 Mar. 2014, and performed relevant information disclosure responsibilities. The Company|
||decided the up limit for the amount of derivative products transaction according to the|
||production and operation scale and the progress of foreign exchange income for the|
||Company, and delivered by phases. It was also possible to use extension of term and other|
||ways to ensure the fulfillment of contract as schedules upon the mature of contract, and|
||wouldn’t cause any loss of credit risk for the Company due to insufficient liquidity or other|
||reasons.|
||3. Operation risk: The derivative financial transactions had high specialty and complexity,|
||so imperfect internal operation procedures, staffs and external events would make the|
||Company to undertake risks during the transaction. Precaution measure: The Company|
||promulgated strict authorization and approval system and perfect regulatory mechanism,|
||fixed the departments, operation procedures and approval procedures system to conduct|
||derivative products transaction, established special risk control positions, implemented strict|
||authorization and post checks and balances system, meanwhile, it improved the overall|
||quality of relevant personnel through strengthening the business training and professional|
||ethics education for them. Besides, it established the System of Reporting the Abnormal|
||Situation Timely, formed an efficient risk management procedures, so as to ensure to lower|
||the operation risks to the maximum.|
||4. Market risk: The forward settlement of exchange is an important derivative products|
||transaction, which was significantly affected by the exchange rate fluctuation due to its large|
||amount. The Central Bank decided to expand the inter-bank spot RMB-dollar trading band|
||from 1% to 2% since 17 Mar. 2014, which would increase the difficulty in the operation of|
||forward settlement of exchange. Besides, if the RMB is devalued by a large margin on the|
||basis of the current situation before the contract is due, so then, the larger losses shall incur|
||in the contract on forward settlement of exchange signed by the Company. Risk analysis and|
||precaution measure: Renminbi appreciated significantly compared with that before the|
||exchange rate reform, but Renminbi internationalization would be a long-term goal, which|
||decided that Renminbi would not depreciated significantly. Although the increased|
||fluctuation range added the operation difficulty, it provided a certain opportunity, which|
||required relevant personnel of the Company actively master the market trend, carefully|
||operate and hold positive opportunity, so as to try the best to reduce the market risks under|
||the condition of increased market difficulty.|
|Changes of market prices or fair|1. Up to 30 Sep. 2014, the Company held 8 undue financial derivative product contracts,|
|values in the reporting period of the|totaling US$ 33,523,600, of which the forward settlement of exchange was of US$ 23|
|invested derivatives. And the analysis|million, the foreign exchange option of US$ 8 million and the forward foreign trading of|
|on the fair value of the derivatives|US$ 2,523,600 (the latest expiration before Dec. 2014). The above financial derivative|
|should include the specific use|products accounted for 3.09% of the closing net assets.|
|methods and the relevant assumptions|2. From Jan. 2014 to Sep. 2014, the due financial derivative products of the Company|
|and parameters.|totally equaled to US$ 314,951,000, all of which were delivered on time and generated a|

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
|||
|-|-|
||gain of RMB 24,781,800. The due forward settlement was US$ 274.6 million, all of which|
||were delivered on time and generated a gain of RMB 24,576,700. The due forward foreign|
||exchange trading amount equaled to US$ 40,351,000 million, all of which were delivered on|
||time and generated a gain of RMB 205,100.|
|Whether significant changes occurred||
|to the Company’s accounting policy||
|and specific accounting principles of||
||No significant change|
|derivatives in the reporting period||
|compared to the previous reporting||
|period||
||The Company’s independent directors Zhou Zhiji, Zhang Chengzhu, Wang Lei, Xu Jianjun|
||and Zhao Yao concerning conducting derivatives business, have issued the following|
||professional advice: we were of the opinion that it would strengthen the Company’s|
|Specific opinion from independent||
||competitiveness to use derivative transactions with focus on forward settlement and|
|directors on the Company’s||
||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|
|control||
||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.|

VII. Researches, visits and interviews received in the reporting period
√Applicable□Inapplicable
|||||||
|-|-|-|-|-|-|
||||||Main discussion|
|||Way of|Visitor||and materials|
|Time|Place|||Visitor||
|||reception|type||provided by the|
||||||Company|
|||||Everbright Securities Co. , Ltd. Li Jie, Tang|The Company’s|
|13 Aug. 2014||By phone|Institution|||
|||||Shuangshuang|current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|Morgan Stanley Huaxin Fund Liu Hong||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|Industrial Securities Huang Wei||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|Rui Gu, Lu Jie||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|Shanghai Chengshi Assets Dong Tao||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|Centrum Capital Hu Binghan||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|CCB International Zhan Jia||
||||||current situation|

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
|||||||
|-|-|-|-|-|-|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|Milestone Asset Weng Di||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|Dan Shuiquan Liu Xiaoyu||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|Taikang Asset Jin Ge||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|Shenzhen Qing Shui Yuan Dai Qiubin||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|Congrong Investment Cheng Chunyan||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|UBS SDIC Li Yanrong||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|China Post Fund Liu Xiaohan||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|ChinaAMC Wang Zhipeng||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|Yong An Insurance Wang Shuting||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|China Universal Fund Xu Lijun||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|SSGA-Fund Zhang Zhidong||
||||||current situation|
||||||The Company’s|
|13 Aug. 2014||By phone|Institution|Shanghai Xiangming Investment Co.,Ltd. Li Dan||
||||||current situation|
||Conference|||||
|||Field|||The Company’s|
|3 Sep. 2014|room of the||Institution|Changjiang Securities Company Limited Leiyu||
|||research|||current situation|
||Company|||||
||Conference|||||
|||Field|||The Company’s|
|3 Sep. 2014|room of the||Institution|Northeast Securities Co.,Ltd. Zhou Yubin||
|||research|||current situation|
||Company|||||

VIII. Influence of the newly promulgated or amended accounting standards on our consolidated financial statements
√ Applicable□ Inapplicable
1. According to the amended<Accounting Standard No. 2 for BusinessEnterprises—Long-term EquityInvestments>, we recorded long-term equity investments where we did not have control or joint control over or significant influence on and of which the fair value could not be measured reliably under the “available-for-sale financial assets” item as per the< Accounting Standard No. 22 for BusinessEnterprises—Recognition and Measurement of FinancialInstruments>. As such, our investments in Yantai Rongchang
Pharmacy Co., Ltd., Gaoqing Hongqiao Thermoelectric Co., Ltd. and Zibo Chengshun Heating Power Co., Ltd. were restated as
available-for-sale financial assets, and the year-beginning consolidated data were also restated adopting the retrospective adjustment
method. The said restatement affected only the two statement items of available-for-sale financial assets and long-term equity
Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd. investments, not our total assets, net assets and current gains and losses.
2. According to the amended<Accounting Standard No. 30 for BusinessEnterprises—Financial StatementPreparation>, we restated the foreign-currency statement translation difference under the “other comprehensive incomes” item, and the year-beginning consolidated amount was also restated. The said restatement affected only the two statement items of other comprehensive incomes and foreign-currency statement translation difference, not our total assets, net assets and current gains and losses.
3. According to the<Accounting Standard No. 9 for BusinessEnterprises—Employees’Compensation> amended in 2014, we divided the payroll payable into short-term emoluments, welfare after resignation, dismissal welfare and other long-termemployees’ welfare. The amendment involved only division, but not affected the amount of the payroll payable. And particulars about theemployees’ compensation were to be disclosed in the coming annual report.
Apart from the above-mentioned, the amended accounting standards had no other influence on our financial situation, operating results and consolidated financial statements.
Section IV. Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by Luthai Textile Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|537,907,586.72|872,461,415.00|
|Financial assets measured at fair value and of which changes are|||
||1,973,800.00|29,949,120.00|
|recorded into current gains and losses|||
|Notes receivable|85,053,825.44|126,106,380.23|
|Accounts receivable|213,015,969.10|280,434,879.62|
|Accounts paid in advance|127,381,076.65|137,003,771.58|
|Dividend receivable|||
|Other accounts receivable|53,793,212.57|68,608,410.00|
|Financial assets purchased under agreements to resell|||
|Inventories|1,633,917,125.62|1,645,070,671.31|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|8,485,764.14|34,030,201.42|
|Total current assets|2,661,528,360.24|3,193,664,849.16|
|Non-current assets:|||

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|Loans by mandate and advances granted|||
|Available-for-sale financial assets|67,442,600.00|67,442,600.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|||
|Fixed assets|4,569,302,505.99|4,454,201,264.50|
|Construction in progress|277,728,941.52|227,959,833.59|
|Engineering materials|234,437,779.64|19,094,482.53|
|Disposal of fixed assets|||
|Production biological assets|356,652,171.25|352,846,664.24|
|Oil-gas assets|||
|Goodwill|20,613,803.29|20,613,803.29|
|Long-term deferred expenses|2,075,000.60|1,711,304.99|
|Deferred income tax assets|53,930,178.59|58,158,023.19|
|Other non-current assets|12,781,283.00|16,255,736.00|
|Total of non-current assets|5,594,964,263.88|5,218,283,712.33|
|Total assets|8,256,492,624.12|8,411,948,561.49|
|Current liabilities:|||
|Short-term borrowings|511,596,083.12|648,664,954.85|
|Financial liabilities measured at fair value and of which changes are|||
|recorded into current gains and losses|||
|Notes payable|10,818,380.91|10,213,263.69|
|Accounts payable|292,422,027.79|400,053,679.69|
|Accounts received in advance|83,307,566.32|100,793,054.81|
|Employee’s compensation payable|290,034,331.70|372,062,834.99|
|Tax payable|39,039,228.56|115,248,378.73|
|Interest payable|2,543,214.96|1,499,475.06|
|Dividend payable|441,966.54|441,966.54|
|Other accounts payable|68,965,568.44|84,445,300.34|
|Non-current liabilities due within 1 year|27,455,391.71|85,356,600.00|
|Other current liabilities|||
|Total current liabilities|1,326,623,760.05|1,818,779,508.70|
|Non-current liabilities:|||
|Long-term borrowings|97,516,566.91|97,550,400.00|

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|Bonds payable|||
|Long-term payables|9,735,560.00|9,735,560.00|
|Specific payables|||
|Estimated liabilities|||
|Deferred income tax liabilities|2,370,204.96|6,550,014.57|
|Other non-current liabilities|65,917,411.93|64,733,100.81|
|Total non-current liabilities|175,539,743.80|178,569,075.38|
|Total liabilities|1,502,163,503.85|1,997,348,584.08|
|Owners’ equity (or shareholders’ equity)|||
|Paid-up capital (or share capital)|955,758,496.00|955,800,496.00|
|Capital reserves|1,006,826,760.08|1,000,854,805.66|
|Less: Treasury stock|||
|Specific reserves|||
|Other Comprehensive income|-7,023,529.52|-7,494,320.36|
|Surplus reserves|659,538,411.25|659,538,411.25|
|Provisions for general risks|||
|Retained profits|3,726,290,439.28|3,379,354,741.18|
|Total equity attributable to owners of the Company|6,341,390,577.09|5,988,054,133.73|
|Minority interests|412,938,543.18|426,545,843.68|
|Total owners’ (or shareholders’) equity|6,754,329,120.27|6,414,599,977.41|
|Total liabilities and owners’ (or shareholders’) equity|8,256,492,624.12|8,411,948,561.49|

 Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming 2. Balance sheet of the Company
Prepared by Luthai Textile Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|361,218,914.48|505,709,597.03|
|Financial assets measured at fair value and of which changes are|||
||1,973,800.00|25,057,200.00|
|recorded into current gains and losses|||
|Notes receivable|67,436,001.66|93,356,553.66|
|Accounts receivable|234,036,121.98|265,740,714.49|
|Accounts paid in advance|213,150,510.56|198,115,786.71|

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|Dividend receivable|||
|Other accounts receivable|||
|Financial assets purchased under agreements to resell|30,482,279.03|33,075,155.68|
|Inventories|1,111,203,355.56|940,892,345.31|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets||3,711,653.08|
|Total current assets|2,019,500,983.27|2,065,659,005.96|
|Non-current assets:|||
|Loans by mandate and advances granted|55,282,600.00|55,282,600.00|
|Available-for-sale financial assets|||
|Held-to-maturity investments|||
|Long-term accounts receivable|1,163,788,591.84|1,046,654,204.88|
|Long-term equity investment|||
|Fixed assets|2,776,855,389.03|2,652,488,993.89|
|Construction in progress|178,500,335.18|186,973,570.92|
|Engineering materials|232,711,044.31|9,040,050.06|
|Disposal of fixed assets|||
|Intangible assets|224,230,709.50|229,829,628.31|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|32,725,760.24|35,041,084.44|
|Other non-current assets|5,406,401.00|5,406,401.00|
|Total of non-current assets|4,669,500,831.10|4,220,716,533.50|
|Total assets|6,689,001,814.37|6,286,375,539.46|
|Current liabilities:|||
|Short-term borrowings|297,019,714.00|88,638,765.21|
|Financial liabilities measured at fair value and of which changes are|||
|recorded into current gains and losses|||
|Notes payable|5,257,207.88|5,474,558.65|
|Accounts payable|276,249,075.79|211,146,523.67|
|Accounts received in advance|43,704,747.09|38,413,307.22|
|Employee’s compensation payable|234,194,342.50|303,548,400.40|

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|Tax payable|24,610,513.61|80,282,862.55|
|Interest payable|2,406,610.76|681,692.31|
|Dividend payable|441,966.54|441,966.54|
|Other accounts payable|18,245,158.82|21,956,228.99|
|Liabilities held for sale|||
|Non-current liabilities due within 1 year|27,455,391.71|85,356,600.00|
|Other current liabilities|||
|Total current liabilities|929,584,728.70|835,940,905.54|
|Non-current liabilities:|||
|Long-term borrowings|97,516,566.91|97,550,400.00|
|Bonds payable|||
|Long-term payables|||
|Specific payables|||
|Estimated liabilities|||
|Deferred income tax liabilities|296,070.00|3,758,580.00|
|Other non-current liabilities|30,638,266.48|31,144,621.51|
|Total non-current liabilities|128,450,903.39|132,453,601.51|
|Total liabilities|1,058,035,632.09|968,394,507.05|
|Owners’ equity (or shareholders’ equity)|||
|Paid-up capital (or share capital)|955,758,496.00|955,800,496.00|
|Capital reserves|1,013,179,441.17|1,007,207,486.75|
|Less: Treasury stock|||
|Specific reserves|||
|Other comprehensive income|||
|Surplus reserves|659,538,411.25|659,538,411.25|
|Provisions for general risks|||
|Retained profits|3,002,489,833.86|2,695,434,638.41|
|Total owners’ (or shareholders’) equity|5,630,966,182.28|5,317,981,032.41|
|Total liabilities and owners’ (or shareholders’) equity|6,689,001,814.37|6,286,375,539.46|

 Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming 3. Consolidated income statement for the reporting period
Prepared by Luthai Textile Co., Ltd.
Unit: RMB Yuan
Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|Item|Jul.-Sept. 2014|Jul.-Sept. 2013|
|I. Total operating revenues|1,459,299,125.04|1,578,162,869.91|
|Including: Sales income|1,459,299,125.04|1,578,162,869.91|
|II. Total operating cost|1,229,616,946.53|1,294,078,195.58|
|Including: Cost of sales|1,016,099,059.98|1,093,479,412.12|
|Interest expenses|||
|Handling charge and commission expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount withdrawn for the insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Taxes and associate charges|11,637,382.05|8,711,151.07|
|Selling and distribution expenses|38,911,228.21|37,667,349.75|
|Administrative expenses|160,259,173.42|140,495,171.44|
|Financial expenses|3,058,935.04|13,400,319.66|
|Asset impairment loss|-348,832.17|324,791.54|
|Add: Gain/(loss) from change in fair value (“-” means loss)|3,023,830.00|8,243,230.00|
|Gain/(loss) from investment (“-” means loss)|3,622,872.65|2,590,756.57|
|Including: share of profits in associates and joint ventures|||
|Foreign exchange gains (“-” means loss)|||
|III. Business profit (“-” means loss)|236,328,881.16|294,918,660.90|
|Add: non-operating income|38,684,003.14|26,983,588.18|
|Less: non-operating expense|1,003,631.25|1,208,581.24|
|Including: loss from non-current asset disposal|823,879.58|1,067,557.93|
|IV. Total profit (“-” means loss)|274,009,253.05|320,693,667.84|
|Less: Income tax expense|39,474,507.51|52,436,575.64|
|V. Net profit (“-” means loss)|234,534,745.54|268,257,092.20|
|Including: Net profit achieved by combined parties before the combinations|||
|Attributable to owners of the Company|233,259,629.65|259,965,918.94|
|Minority shareholders’ income|1,275,115.89|8,291,173.26|
|VI. Earnings per share|--|--|
|(I) Basic earnings per share|0.24|0.28|
|(II) Diluted earnings per share|0.24|0.28|

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|VII. Other comprehensive incomes|474,152.61|-233,359.31|
|Including: Other comprehensive incomes items that cannot be reclassified as gains|||
|and losses in the subsequent accounting periods|||
|Other comprehensive incomes items that will be reclassified as gains and losses|||
||474,152.61|-233,359.31|
|in the subsequent accounting periods as relevant requirements are met|||
|VIII. Total comprehensive incomes|235,008,898.15|268,023,732.89|
|Attributable to owners of the Company|233,733,782.26|259,732,559.63|
|Attributable to minority shareholders|1,275,115.89|8,291,173.26|

 Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming 4. Income statement of the Company for the reporting period
Prepared by Luthai Textile Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jul.-Sept. 2014|Jul.-Sept. 2013|
|I. Total sales|1,146,630,743.95|1,233,216,982.68|
|Less: cost of sales|806,314,524.45|871,674,675.26|
|Business taxes and surcharges|7,586,122.90|7,470,100.16|
|Distribution expenses|17,703,097.47|15,945,415.10|
|Administrative expenses|114,683,553.89|100,905,286.06|
|Financial costs|31,161.80|4,077,675.62|
|Impairment loss|1,537,244.61|3,395,097.23|
|Add: gain/(loss) from change in fair value (“-” means loss)|2,722,930.00|7,168,300.00|
|Gain/(loss) from investment (“-” means loss)|63,208,307.08|937,236.57|
|Including: income form investment on associates and joint ventures|||
|II. Business profit (“-” means loss)|264,706,275.91|237,854,269.82|
|Add: non-business income|37,341,244.12|23,123,558.29|
|Less: non-business expense|388,059.63|1,137,244.73|
|Including: loss from non-current asset disposal|301,200.85|1,059,514.25|
|III. Total profit (“-” means loss)|301,659,460.40|259,840,583.38|
|Less: income tax expense|29,849,705.15|40,737,019.49|
|IV. Net profit (“-” means loss)|271,809,755.25|219,103,563.89|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|0.28|0.23|
|(II) Diluted earnings per share|0.28|0.23|

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|VI. Other comprehensive income|||
|Including: Other comprehensive incomes items that cannot be reclassified as|||
|gains and losses in the subsequent accounting periods|||
|Other comprehensive incomes items that will be reclassified as gains and|||
|losses in the subsequent accounting periods as relevant requirements are met|||
|VII. Total comprehensive income|271,809,755.25|219,103,563.89|

 Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming 5. Consolidated income statement for Jan.-Sept. 2014
Prepared by Luthai Textile Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Total operating revenues|4,573,525,706.66|4,638,658,125.08|
|Including: Sales income|4,573,525,706.66|4,638,658,125.08|
|Interest income|||
|Premium income|||
|Handling charge and commission income|||
|II. Total operating cost|3,781,257,471.20|3,874,437,740.20|
|Including: Cost of sales|3,153,949,353.35|3,278,054,350.02|
|Interest expenses|||
|Handling charge and commission expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount withdrawn for the insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Taxes and associate charges|35,180,972.00|40,446,798.89|
|Selling and distribution expenses|132,019,374.03|119,479,189.90|
|Administrative expenses|455,191,848.05|401,317,500.83|
|Financial expenses|10,500,242.50|37,737,259.94|
|Asset impairment loss|-5,584,318.73|-2,597,359.38|
|Add: Gain/(loss) from change in fair value (“-” means loss)|-27,975,320.00|6,524,749.00|
|Gain/(loss) from investment (“-” means loss)|24,901,821.73|20,240,433.99|
|Including: share of profits in associates and joint ventures|||

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|Foreign exchange gains (“-” means loss)|||
|III. Business profit (“-” means loss)|789,194,737.19|790,985,567.87|
|Add: non-operating income|58,510,771.38|45,053,343.38|
|Less: non-operating expense|4,098,753.25|2,092,337.53|
|Including: loss from non-current asset disposal|2,878,470.70|1,189,964.78|
|IV. Total profit (“-” means loss)|843,606,755.32|833,946,573.72|
|Less: Income tax expense|127,534,886.46|136,129,483.74|
|V. Net profit (“-” means loss)|716,071,868.86|697,817,089.98|
|Including: Net profit achieved by combined parties before the|||
|combinations|||
|Attributable to owners of the Company|710,139,886.58|676,141,809.32|
|Minority shareholders’ income|5,931,982.28|21,675,280.66|
|VI. Earnings per share|--|--|
|(I) Basic earnings per share|0.74|0.71|
|(II) Diluted earnings per share|0.74|0.71|
|VII. Other comprehensive incomes|470,790.84|-1,046,286.12|
|Including: Other comprehensive incomes items that cannot be reclassified|||
|as gains and losses in the subsequent accounting periods|||
|Other comprehensive incomes items that will be reclassified as gains and|||
|losses in the subsequent accounting periods as relevant requirements are|470,790.84|-1,046,286.12|
|met|||
|VIII. Total comprehensive incomes|716,542,659.70|696,770,803.86|
|Attributable to owners of the Company|710,610,677.42|675,095,523.20|
|Attributable to minority shareholders|5,931,982.28|21,675,280.66|

 Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming 6. Income statement of the Company for Jan.-Sept. 2014
Prepared by Luthai Textile Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Total sales|3,464,830,268.05|3,459,398,413.78|
|Less: cost of sales|2,403,442,311.30|2,464,801,509.96|
|Business taxes and surcharges|25,674,053.53|30,666,602.50|
|Distribution expenses|59,880,409.40|48,967,979.51|
|Administrative expenses|322,513,995.73|283,102,825.24|

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|Financial costs|-4,693,539.59|10,691,014.45|
|Impairment loss|387,972.56|2,890,515.38|
|Add: gain/(loss) from change in fair value (“-” means loss)|-23,083,400.00|1,108,759.00|
|Gain/(loss) from investment (“-” means loss)|81,329,816.12|18,672,363.99|
|Including: income form investment on associates and joint ventures|||
|II. Business profit (“-” means loss)|715,871,481.24|638,059,089.73|
|Add: non-business income|53,629,451.00|30,634,667.64|
|Less: non-business expense|3,083,309.92|1,766,598.55|
|Including: loss from non-current asset disposal|2,354,115.36|1,147,493.63|
|III. Total profit (“-” means loss)|766,417,622.32|666,927,158.82|
|Less: income tax expense|96,158,238.39|102,713,999.87|
|IV. Net profit (“-” means loss)|670,259,383.93|564,213,158.95|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|0.70|0.59|
|(II) Diluted earnings per share|0.70|0.59|
|VI. Other comprehensive income|||
|Including: Other comprehensive incomes items that cannot be reclassified|||
|as gains and losses in the subsequent accounting periods|||
|Other comprehensive incomes items that will be reclassified as gains|||
|and losses in the subsequent accounting periods as relevant requirements|||
|are met|||
|VII. Total comprehensive income|670,259,383.93|564,213,158.95|

 Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming 7. Consolidated cash flow statement for Jan.-Sept. 2014
Prepared by Luthai Textile Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Cash flows from operating activities:|||
|Cash received from sale of commodities and rendering of service|4,739,038,472.26|4,677,517,728.61|
|Net increase of deposits from customers and dues from banks|||
|Net increase of loans from the central bank|||
|Net increase of funds borrowed from other financial institutions|||
|Cash received from premium of original insurance contracts|||

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|Net cash received from reinsurance business|||
|Net increase of deposits of policy holders and investment fund|||
|Net increase of disposal of tradable financial assets|||
|Cash received from interest, handling charges and commissions|||
|Net increase of intra-group borrowings|||
|Net increase of funds in repurchase business|||
|Tax refunds received|147,836,635.52|130,470,701.76|
|Other cash received relating to operating activities|77,348,657.08|68,886,871.62|
|Subtotal of cash inflows from operating activities|4,964,223,764.86|4,876,875,301.99|
|Cash paid for goods and services|2,615,548,578.31|2,733,786,778.93|
|Net increase of customer lendings and advances|||
|Net increase of funds deposited in the central bank and amount due from|||
|banks|||
|Cash for paying claims of the original insurance contracts|||
|Cash for paying interest, handling charges and commissions|||
|Cash for paying policy dividends|||
|Cash paid to and for employees|1,019,650,627.92|901,798,075.13|
|Various taxes paid|285,300,761.33|199,727,477.04|
|Other cash payment relating to operating activities|201,143,159.99|143,493,359.83|
|Subtotal of cash outflows from operating activities|4,121,643,127.55|3,978,805,690.93|
|Net cash flows from operating activities|842,580,637.31|898,069,611.06|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of investments|||
|Cash received from return on investments|120,000.00||
|Net cash received from disposal of fixed assets, intangible assets and|||
||10,003,767.30|4,597,037.91|
|other long-term assets|||
|Net cash received from disposal of subsidiaries or other business units|||
|Other cash received relating to investing activities|30,237,990.10|22,643,185.14|
|Subtotal of cash inflows from investing activities|40,361,757.40|27,240,223.05|
|Cash paid to acquire fixed assets, intangible assets and other long-term|||
||617,521,092.48|452,765,553.34|
|assets|||
|Cash paid for investment|||
|Net increase of pledged loans|||
|Net cash paid to acquire subsidiaries and other business units|||
|Other cash payments relating to investing activities|||

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|Subtotal of cash outflows from investing activities|617,521,092.48|452,765,553.34|
|Net cash flows from investing activities|-577,159,335.08|-425,525,330.29|
|III. Cash Flows from Financing Activities:|||
|Cash received from capital contributions|500,000.00||
|Including: Cash received from minority shareholder investments by|||
|subsidiaries|||
|Cash received from borrowings|875,003,762.86|895,692,472.84|
|Cash received from issuance of bonds|||
|Other cash received relating to financing activities|12,000,000.00|128,760,586.78|
|Subtotal of cash inflows from financing activities|887,503,762.86|1,024,453,059.62|
|Repayment of borrowings|1,071,424,640.49|1,319,051,629.30|
|Cash paid for interest expenses and distribution of dividends or profit|408,680,695.24|292,114,539.61|
|Including: dividends or profit paid by subsidiaries to minority|||
|shareholders|||
|Other cash payments relating to financing activities|37,633,916.36|308,785,842.17|
|Sub-total of cash outflows from financing activities|1,517,739,252.09|1,919,952,011.08|
|Net cash flows from financing activities|-630,235,489.23|-895,498,951.46|
|IV. Effect of foreign exchange rate changes on cash and cash equivalents|4,837,492.36|-1,999,550.60|
|V. Net increase in cash and cash equivalents|-359,976,694.64|-424,954,221.29|
|Add: Opening balance of cash and cash equivalents|869,909,505.89|900,182,215.72|
|VI. Closing balance of cash and cash equivalents|509,932,811.25|475,227,994.43|

 Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming 8. Cash flow statement of the Company for Jan.-Sept. 2014
Prepared by Luthai Textile Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Cash flows from operating activities:|||
|Cash received from sale of commodities and rendering of service|3,510,456,395.45|3,425,325,312.28|
|Tax refunds received|116,413,226.57|81,499,131.48|
|Other cash received relating to operating activities|51,225,907.26|33,637,487.63|
|Subtotal of cash inflows from operating activities|3,678,095,529.28|3,540,461,931.39|
|Cash paid for goods and services|2,009,520,631.31|2,191,814,367.76|
|Cash paid to and for employees|770,902,054.08|689,156,047.52|

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd.
||||
|-|-|-|
|Various taxes paid|175,084,074.85|109,159,564.76|
|Other cash payment relating to operating activities|114,263,823.31|98,287,684.60|
|Subtotal of cash outflows from operating activities|3,069,770,583.55|3,088,417,664.64|
|Net cash flows from operating activities|608,324,945.73|452,044,266.75|
|II. Cash flows from investing activities:|||
|Cash received from retraction of investments|||
|Cash received from return on investments|||
|Net cash received from disposal of fixed assets, intangible assets and|||
||9,663,804.30|4,504,961.91|
|other long-term assets|||
|Net cash received from disposal of subsidiaries or other business units|||
|Other cash received relating to investing activities|25,833,632.06|20,077,197.85|
|Subtotal of cash inflows from investing activities|35,497,436.36|24,582,159.76|
|Cash paid to acquire fixed assets, intangible assets and other long-term|||
||477,924,701.00|262,433,258.71|
|assets|||
|Cash paid for investment|87,406,362.39||
|Net cash paid to acquire subsidiaries and other business units|||
|Other cash payments relating to investing activities||1,100,000.00|
|Subtotal of cash outflows from investing activities|565,331,063.39|263,533,258.71|
|Net cash flows from investing activities|-529,833,627.03|-238,951,098.95|
|III. Cash Flows from Financing Activities:|||
|Cash received from capital contributions|||
|Cash received from borrowings|308,716,019.09|504,371,831.37|
|Cash received from issuance of bonds|||
|Other cash received relating to financing activities||35,410,586.78|
|Subtotal of cash inflows from financing activities|308,716,019.09|539,782,418.15|
|Repayment of borrowings|158,232,764.78|572,748,867.72|
|Cash paid for interest expenses and distribution of dividends or profit|378,078,667.88|269,785,130.01|
|Other cash payments relating to financing activities|25,633,916.36|200,985,842.17|
|Sub-total of cash outflows from financing activities|561,945,349.02|1,043,519,839.90|
|Net cash flows from financing activities|-253,229,329.93|-503,737,421.75|
|IV. Effect of foreign exchange rate changes on cash and cash equivalents|4,824,462.32|-669,747.39|
|V. Net increase in cash and cash equivalents|-169,913,548.91|-291,314,001.34|
|Add: Opening balance of cash and cash equivalents|503,157,687.92|559,095,505.76|
|VI. Closing balance of cash and cash equivalents|333,244,139.01|267,781,504.42|

Report for the Third Quarter of 2014 of Luthai Textile Co., Ltd. Legal representative: Liu Shizhen Chief of the accounting work: Zhang Hongmei Chief of the accounting organ: Zhang Keming II. Audit report
Is this report audited?
□ Yes√ No
This report is not audited.
Chairman of the Board: Liu Shizhen
Luthai Textile Co., Ltd.
30 Oct. 2014