Stock Code: 000726 200726 Stock Name: LTTC LTTC-B Announcement No. 2021-054

Bond Code: 127016 Bond Name: LTTC Convertible Bonds

LU THAI TEXTILE CO. LTD.INTERIM REPORT 2021 (SUMMARY)

Part I Important Notes

This Summary is based on the full text of the Interim Report of Lu Thai Textile Co. Ltd. (together with its consolidated subsidiaries

the “Company” except where the context otherwise requires). In order for a full understanding of the Company’s operating results

financial condition and future development plans investors should carefully read the aforesaid full text which has been disclosed

together with this Summary on the media designated by the China Securities Regulatory Commission (the “CSRC”).Except for the following directors all the other directors attended in person the Board meeting for the review of this Report and its

summary.Reason for not attending

Name Office title Proxy

meeting in person

Independent auditor’s modified opinion:

□ Applicable √ Not applicable

Board-approved interim cash and/or stock dividend plan for ordinary shareholders:

□ Applicable √ Not applicable

The Company has no interim dividend plan either in the form of cash or stock.Board-approved interim cash and/or stock dividend plan for preferred shareholders:

□ Applicable √ Not applicable

This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or

misunderstandings between the two versions the Chinese versions shall prevail.Part II Key Corporate Information

1. Stock Profile

Stock name LTTC LTTC-B Stock code 000726 200726

Stock exchange for stock listing Shenzhen Stock Exchange

Contact information Board Secretary Securities Representative

Name Zhang Keming Zheng Weiyin and Li Kun

No. 81 Songling East Road Zichuan No. 81 Songling East Road Zichuan

Office address

District Zibo Shandong P.R.China District Zibo Shandong P.R.China

Tel. 0533-5277008 0533-5285166

E-mail address zhangkeming@lttc.com.cn wyzheng@lttc.com.cn，likun@lttc.com.cn2. Key Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √ No

H1 2021 H1 2020 Change (%)

Operating revenue (RMB) 2220313650.94 2286744080.79 -2.91%

Net profit attributable to the listed company’s shareholders (RMB) 153497344.66 144119579.22 6.51%

Net profit attributable to the listed company’s shareholders before

54281532.08 108105593.17 -49.79%

exceptional gains and losses (RMB)

Net cash generated from/used in operating activities (RMB) 182761025.14 209392265.69 -12.72%

Basic earnings per share (RMB/share) 0.17 0.17 0.00%

Diluted earnings per share (RMB/share) 0.19 0.16 18.75%

Weighted average return on equity (%) 1.97% 1.85% 0.12%

30 June 2021 31 December 2020 Change (%)

Total assets (RMB) 12400765912.80 12129903960.65 2.23%

Equity attributable to the listed company’s shareholders (RMB) 7868221583.13 7687577590.72 2.35%

3. Shareholders and Their Holdings as at the End of the Reporting Period

Unit: share

Number of preferred shareholders with resumed

Number of ordinary shareholders 58740 0

voting rights (if any)

Top 10 shareholders

Sharehol Shares in

Nature of ding Number of Restricted pledge marked

Name of shareholder

shareholder percenta shares shares or frozen

ge Status Shares

Domestic

Zibo Lucheng Textile Investment Co. Ltd. non-state-owned 15.91% 140353583 0

legal person

Tailun (Thailand) Textile Co. Ltd. Foreign legal person 13.40% 118232400 118232400

State-owned legal

Central Huijin Assets Management Co. Ltd. 2.30% 20315300 0

person

Bank of Communications- ICBC Credit Suisse Double

Other 1.36% 11999859 0

Interest Bond Securities Investment Fund

Domestic

National Social Security Fund Portfolio 413 non-state-owned 1.09% 9600051 0

legal person

Zhong Ou Asset Management-Agricultural Bank of

China-Zhong Ou China Securities Asset Management Other 0.59% 5235900 0

Plan

Dacheng Fund-Agricultural Bank of China- Dacheng

Other 0.59% 5235900 0

China Securities Asset Management Plan

Harvest Fund-Agricultural Bank of China-Harvest

Other 0.59% 5235900 0

China Securities Asset Management Plan

GF Fund Management-Agricultural Bank of China-GF

Other 0.59% 5235900 0

China Securities Asset Management Plan

China Asset Management-Agricultural Bank of

Other 0.59% 5235900 0

China-China China Securities Asset Management Plan

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

Related or acting-in-concert parties among the shareholders above foreign capital of the Company. All of other

shareholders are people holding public A share or

public B share and the Company is not able to

confirm whether there is associated relationship or

concerted action among other shareholders.Shareholders involved in securities margin trading (if any) N/A

4. Change of the Controlling Shareholder or the Actual Controller in the Reporting Period

Change of the controlling shareholder in the Reporting Period:

□ Applicable √ Not applicable

The controlling shareholder remained the same in the Reporting Period.Change of the actual controller in the Reporting Period:

□ Applicable √ Not applicable

The actual controller remained the same in the Reporting Period.5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

No preferred shareholders in the Reporting Period.6. Outstanding Bonds at the Date when this Report Was Authorized for Issue

√ Applicable □ Not applicable

(1) Bond Profile

Balance

Bond name Abbr. Bond code Date of issue Maturity Coupon rate

(RMB’0000)

First year: 0.3%

Second year: 0.6%

Convertible Corporate LTTC Third year: 1.0%

Bonds of Lu Thai Convertible 127016 9 April 2020 8 April 2026 1399880600

Fourth year: 1.5%

Textile Co. Ltd. Bonds

Fifth year: 1.8%

Sixth year: 2.0%。

(2) Relevant Financial Information as of the End of the Reporting Period

Unit: RMB'0000

Item 30 June 2021 31 December 2020

Debt/asset ratio 32.33% 33.29%

Item H1 2021 H1 2020

EBITDA-to-interest coverage (times) 10.95 10.66

Part III Significant Events

The economic environment has been complicated since 2021. The uncertainties in the recovery of the post-pandemic era are a lot

especially when it comes to the situations like the surging in the prices of mass merchandise and the high cost of human resources.The Company is centered on the clients and continues to implement the strategies of “Improve Quality and Efficiency” and “OverallInternationalization”. The Company focuses on expanding the market adjusting the structure and building capabilities to make sure

all programs running smoothly. For the Reporting Period the Company recorded revenue of RMB2220 million an operating profit

of RMB167 million a net profit attributable to the listed company’s shareholders of RMB153 million and a net profit attributable to

the listed company’s shareholders before exceptional gains and losses of RMB54 million down 2.91% down 4.71% up 6.51% and

down 49.79% respectively from the same period of last year. No changes occurred to the Company’s principal operations products

or business models or the primary factors driving the Company’s growth in the Reporting Period.During the Reporting Period the Company has been rated as the leader in the cotton textile industry during the 13th Five Year Plan

by China Cotton Textile Association and as the top 30 enterprises in 2021 in the dyeing and printing industry by China Dyeing and

Printing Association. Besides it has been conferred the Special Contribution Award (2016-2020) in the textile and apparel industry

of Shandong Province and appraised as the advanced enterprise in corporate culture development in 2020 by Shandong Textile and

Apparel Association. The Company has prioritized the following aspects:

(I) The Company has put the customer on the first place optimized the product structure and expanded the market.1. It has built an all-around relationship with its customers so as to stabilize order and production.The Company has established a high-level docking mechanism and a multi-tiered communication mechanism with its strategic

customers. What's more it has advanced the development of front-end design services especially the service that aims at strategic

customers. It has also stepped up the efforts to complete 16 tailored projects including the development of viscose and knitted fabrics.The Company has set up a specialized service group targeted at the strategic and valuable customers. In doing so it can improve the

marketing capability and enhance the capability of defusing and controlling marketing risks. With the above measures the Company

has witnessed an increase in its order and its revenue has also increased.2. The Company has driven the development of business wear and expanded the domestic market of business wear.The Company has constantly adjusted the product structure in domestic market based on its competitive businesses and the situation

of domestic market. Moreover it has kept enhancing the cooperation with strategic customers of domestic market and planned its

business development and the focus of cooperation in the future. During the Reporting Period the profit of the Company's career

apparel in domestic market has seen a significant rise and the career apparel's share in the Company's domestic businesses has also

witnessed an increase.3. The Company has stepped up its efforts to enrich the variety of its products and expanded its market.During the Reporting Period the Company has made endeavors to develop new fabrics like knitted and pants fabrics. Moreover it

has diversified its garment products including yoga pants and T-shirt. Therefore its volume of business and new customers have

increased. What's more it has actively explored new models of business cooperation which includes the cooperation with

e-commerce platforms.(II) The Company now has put an emphasis on its product lines and fully leveraged the strength of its international industrial

distribution.The Company has possessed six product lines including yan yarn-dyed printing and dyeing functional and knitted fabrics and

garment. Although the severe international market situation and the significant price rise of raw materials have had an impact on the

Company it has adjusted the structure of its product lines and explored new operation models. The technology of high-quality and

ironing-free knitted fabrics of shirts developed by the Company has passed the science evaluation and reached the advanced

international level.Faced with the pressure brought by COVID-19 pandemic Lu Thai (Burma) Textile Co. Ltd and Lu Thai (Tan Chau) Textile Co. Ltd

have fully leveraged geographical advantages to cushion the impacts of tariff barrier and Sino-US trade friction. During the

Reporting Period the yarn-dyed factory of Lu Thai (Burma) Textile Co. Ltd has completed the task of taking orders of strategic

customers. Lu Thai (Cambodia) Textile Co. Ltd has seen a reduction in its order due to the impact of the pandemic. Despite that the

Company has made constant endeavors to control and prevent COVID-19 and stressed the building of company staff with a lowest

rate of employee turnover.(III) The Company has taken various measures to stabilize the number of its employees.A stable number of employees is the cornerstone for the Company's development. During the Reporting Period the Company was

pressured by a shortage of employees. Therefore it has implemented the2021 restricted stock incentive plan adjusted its salary

structure and improved staff benefits. In doing so it has stabilized the number of ordinary employees and core technical staff.The Company has always upheld its mission of creating wealth and making contributions to the society. It has practiced the value of

putting people on the first place customers coming first and being honest and seeking win-win outcome. Besides it has kept

improving and extending its industrial chains. So it has gradually become a textile and apparel enterprise that integrates spinning

bleaching weaving and clothing manufacture. It has laid its emphasis on the production of yarn-dyed printing and dyeing and

knitted fabrics for medium-and-high end shirts and the sale of ready-made clothes. The Company has prioritized its comprehensive

management capability R&D capability technology stable product quality and international industrial distribution. What's more it

keeps improving its service stepping up innovation expanding its market and increasing the added-value of its products. At the

moment the Company has formed the fashionable functional and comfortable product lines that focus on natural fiber fabric

multi-component functional fiber fabric and ironing-free fabric. It products lines now have satisfied the diversified and personalized

market demand.The Company now has become a large-scale manufacturer of high-quality yarn-dyed fabric and a first-line shirt manufacturer at the

international level. It has embarked on a green low-carbon scientific and humanistic path of development based on the traditional

textile industry.Chairman of the Board: Liu Zibin

Lu Thai Textile Co. Ltd.28 August 2021