Stockcode:000726,200726 Stockname:LuThaiA,LuThaiB AnnouncementNo.:2016-041 LuThaiTextileCo.,Ltd. AbstractofSemi-annualReport2016 1.Importantnotes TheAbstractisbasedonthefulltextofthesemi-annualreport.Formoredetails,investorsaresuggestedtoreadthefulltextdisclosedatthesametimewiththeAbstractonhttp://www.cninfo.com.cn,thewebsiteoftheShenzhenStockExchangeoranyotherwebsitesdesignatedbytheCSRC. TheAbstracthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail. Corporateprofile Stockname LuThaiA,LuThaiB Stockcode 000726,200726 Changedstockname(ifany) N/A Stockexchange ShenzhenStockExchange Contactinformation BoardSecretary SecuritiesRepresentative Name QinGuiling ZhengWeiyin,LiKun Tel. 0533-5266188 0533-5285166 Fax 0533-5418805 0533-5418805 E-mail qinguiling@lttc.com.cn wyzheng@lttc.com.cn，likun@lttc.com.cn 2.Financialhighlightsandshareholderchanges (1)Financialhighlights WhethertheCompanyperformsanyretroactiveadjustmentstoorrestatementsofitsaccountingdataoflastyearduetochangeinaccountingpoliciesorcorrectionofaccountingerrors □Yes√No Sameperiodoflast ReportingPeriod +/-(%) year Operatingrevenues(RMB) 2,831,326,773.03 2,941,835,897.16 -3.76% Netprofit attributabletoshareholders of theCompany 344,641,184.73 344,521,516.72 0.03% (RMB) Netprofit attributabletoshareholders of theCompany 333,236,862.51 308,604,457.41 7.98% excludingexceptionalprofitandloss(RMB) Netcashflowsfromoperatingactivities(RMB) 563,407,347.43 362,304,624.13 55.51% Basicearningspershare(RMB/share) 0.37 0.36 2.78% Dilutedearningspershare(RMB/share) 0.37 0.36 2.78% Weightedaveragereturnonequity(%) 5.10% 5.10% 0.00% Asattheendofthe Asattheendoflast +/-(%) ReportingPeriod year Totalassets(RMB) 9,021,235,390.97 9,091,170,499.22 -0.77% Netassetsattributableto shareholdersof theCompany 6,508,090,698.05 6,837,113,075.58 -4.81% (RMB) (2)Shareholdingsofthetop10ordinaryshareholders Unit:share Total number of ordinary 64,672 shareholders at the end of the ReportingPeriod Shareholdingsofthetop10ordinaryshareholders Pledgedorfrozen Numberof Numberof Natureof Shareholdin shares Nameofshareholder ordinary restrictedordinary shareholder gpercentage Numbe sharesheld sharesheld Status r Domestic ZIBO LUCHENG TEXTILEnon-state-owned 14.69% 140,353,583 INVESTMENTCO.,LTD. corporation TAILUN(THAILAND)TEXTILECO.,Foreign 12.37% 118,232,400 118,232,400 LTD. corporation CENTRAL HUIJIN ASSETSState-owned 2.13% 20,315,300 MANAGEMENTCO.,LTD. corporation T.ROWE PRICE INTL DISCOVERYForeign 2.09% 19,948,219 FUND corporation Domestic CHINA SECURITIES FINANCEnon-stated-owned 1.64% 15,679,091 CORPORATIONLIMITED corporation Foreign LYNASASIAFUND 1.46% 14,000,000 corporation HUA’ANNEWSILKROADTHEMEDomestic EQUITYSECURITIES INVESTMENTnon-stated-owned 1.06% 10,110,000 FUND corporation FIRST STATE INVESTMENTSForeign ICVC-FIRSTSTATEGREATERCHINA 0.96% 9,215,168 corporation GROWTHFUND CENTRALEUROPEVALUEFOUNDDomestic EQUITYSECURITIES INVESTMENTnon-stated-owned 0.73% 6,949,763 FUND corporation HTHK-MANULIFE CHINA VALUEForeign 0.72% 6,858,138 FUND corporation ZiboLuchengTextileInvestmentCo.,Ltd.isthelargestshareholder oftheCompanyandtheactualcontroller.Tailun(Thailand)Textile Co.,Ltd.isthesecondlargestshareholderaswellassponsorof Relatedor act-in-concert parties among the shareholdersforeigncapitaloftheCompany.Allofothershareholdersarepeople above holdingcirculatingAshareorcirculatingBshareandtheCompany isnotabletoconfirmwhetherthereisassociatedrelationshipor concertedactionamongothershareholders. Shareholdersconductingsecuritiesmargintrading(ifany) N/A (3)Shareholdingsofthetop10preferenceshareholders □Applicable√Notapplicable NosuchcasesintheReportingPeriod. (4)Changeofthecontrollingshareholderortheactualcontroller ChangeofthecontrollingshareholderintheReportingPeriod □Applicable√Notapplicable NosuchcasesintheReportingPeriod. ChangeoftheactualcontrollerintheReportingPeriod □Applicable√Notapplicable NosuchcasesintheReportingPeriod. 3.Discussionandanalysisbythemanagement Inthefirsthalfof2016,affectedbythemacroeconomicenvironment,thetextile&apparelsectorsawaslowrecoveryin fundamentalsandexportwithweakconsumerdemand.Undersuchcircumstances,wecontinuedtobaseourselvesontherealityoftheindustryandtheCompany,deepenourexcellentperformancemanagementmodel,promoteourLuThaiProductionSystem(LTPS)andproactivelycarryforwardourglobalplanning.Meanwhile,weacceleratedthein-depthfusionofindustrializationandinformatization,pushedforwardinnovationasadrivingforceandstrengthenedcorporatecultureimprovement.Asaresult,wemanagedtomaintainahealthyandsteadydevelopmenttrend. FortheReportingPeriod,theCompanyachievedoperatingrevenuesofRMB2.831billion,operatingprofitofRMB419million,netprofitattributabletotheshareholdersoftheCompanyofRMB345millionandnetprofitattributabletotheshareholdersoftheCompanyofRMB333millionafterexcludingtheexceptionalprofitandloss,down3.76%,up2.87%,0.03%and7.98%respectivelyfromthesameperiodoflastyear.Nochangesoccurredtothemainbusiness,themainprofitsourcesandstructureoftheCompany.DuringtheReportingPeriod,theCompanywasnamedas“2015Top20EnterprisesinChinesePrintingandDyeingIndustry”byChinaDyeingandPrintingIndustryAssociation,“ChineseExportsQualityandSafetyDemonstrationEnterprise”byStateGeneralAdministrationofthePeople’sRepublicofChinaforQualitySupervisionandInspectionandQuarantine,“Top100EnterprisesinChineseGarmentIndustryin2015”byChinaNationalGarmentAssociation,“TheProvince'sTradeUnionLaborProtectionDemonstrationEnterpriseinLightTextileIndustry”byShandongProvinceLightTextileIndustrialTradeUnionCommittee.“LuThai”trademarkwasratedasafamousbrandofShandongProvincebyAdministrationforIndustryandCommerceofShandongProvince.LuThaiGroupwasselectedasChinaCottonTextileAssociationtop100enterprisesofthemainbusinessrevenuesincottontextileindustryin2015(fourthplace),andtop10enterprisesofmainbusinessrevenuesinyarn-dyedfabricindustry(first).DuringtheReportingPeriod,theCompanycontinuallycarriedoutscientificresearchandinnovation,constantlydevelopednewtechnologiesandprocesses,increasedcustomerpromotionandservice,maderesearchesoncustomizedserviceforeachkeycustomerindomesticandforeignmarkets,andregularlyorganizednewproductordermeetingandreviewmeeting,andalsoheldnewproductdesignanddevelopmentseminarswithbusinesssegmentsandbrandpromotioncentersfromtimetotime.Withtheend-market’scontinuouslyincreaseddemandforleisureproducts,theCompanyutilizedadvantageresourcestointensifythedevelopmentofjeans,casualwashingproducts,andmarketacceptanceandcustomerrecognitionsubstantiallyincreased.DuringtheReportingPeriod,28patentsweredeclaredandaccepted,ofwhich23patentswereauthorized.TheCompanyalsoparticipatedinenacting1industrystandard.Uptonow,italtogetherwon44prizesinthenationalandprovinciallevel,including1firstprizeand2secondprizesofNationalScientificandTechnologicalAwardsand8firstprizesattheprovincialstage.341patentswereappliedandaccepted,ofwhich234wereauthorized;theCompanyalsoparticipatedinortookchargeofenacting29standards. TheCompanypopularizestheresultsofmarketservicesupgradingyeartoenhancethebrandinfluence.TheCompanytookfulladvantageofitsMilanOfficeinItalyandthesubsidiaryinAmericatointernationalizeitscreativityanddesign,establishedcommunicationmechanismwithstrategiccustomers,andparticipatedinthepre-trendplanningactivelyandofferedextendeddesignservices.TheCompanyestablishedadirectconnectionwithdesignersofkeycustomersthroughthemarketpromotionconferencesconvenedinBritain,Turkey,andcontinuedtostrengthencommunicationwithdesignersofkeycustomersinAmericaandAsiasoastopromoteclosercooperationbetweenthetwosidesandtorecommendnaturalfiberseriesofnewproductstocustomers.ThroughNewYorkandMilanpromotionconferencesandShanghaifabricpromotionconferences,itcommunicatedadequatelywithcustomersofOXFORD,TAG,TMW,SEIDENSTICKERUnitedStates,Itochu,PVHandsoon,andmaintainedagoodrelationshipofcooperation.DuringReportingPeriod,theCompanydesigned1568patternsforkeycustomers,provided7368colors,andcompletedthe2017springandsummertrendofdesignincludingatotalof100series,3751colors. DuringtheReportingPeriod,theCompanycontinuedpromotingthebrand-buildingandmarketingnetworkconstruction.BeijingLutai Youxian E-Commerce Co., Ltd, a subsidiary of Lu Thai (“UTAILOR Jun Yi” high-end custom platform(www.utailor.com.cn)),tookadvantageoftheCompany’smanufacturingtechnologyinthewholeindustrychainandqualityguaranteeandsoon,andadopted“placeorderonlineandconductmeasurementbyvisitingthecustomers”O2Omode.WithconvenientbookingandorderbyUtailor,Vshop,Jingdongflagshipstoresand400callsandothermeans,itprovidesconsumerswithtailor-madeserviceforhigh-qualityshirt.Since“UTAILORE”,oneofitshigh-endmen’sclothingwaspushedtothemarket,thenumberofcustomersandtore-purchaserateofoldcustomersisrisingconsistently.Now,itsbusinesscoversthefirst-tirecities,includingBeijing,Shanghai,ShenzhenandGuangzhou,whichpavesthewayforthepromotionofitsgarmentbrands. Atthecurrent stage,LuThai,withnaturalfabricasitsflagship,multi-componentfunctionalfiberfabricasitsspearhead, wash-and-wearnon-ironingtechnologyasitscorecompetency,thelatestconsumptiontrendasitsguidanceandinternationalizedindustrialmanufacturingasitsbasis,issparingeveryefforttoattainaglobalintegrateddevelopment,soastoensureitsleadingpositionintheyarn-dyedshirtfabricsector. 4.Mattersrelatedtofinancialreporting (1)Explainanychangesintheaccountingpolicies,accountingestimatesandmeasurementmethodsascomparedwiththefinancialreportingoflastyear □Applicable√Notapplicable NosuchcasesintheReportingPeriod. (2)ExplainanyretroactiverestatementsduetocorrectionofsignificantaccountingerrorsintheReportingPeriod □Applicable√Notapplicable NosuchcasesintheReportingPeriod. (3)Explainanychangesintheconsolidationscopeascomparedwiththefinancialreportingoflastyear √Applicable□Notapplicable LuAnGarmentsCo.,Ltd.wasincorporatedintheReportingPeriodasanewwholly-ownedsubsidiaryoftheCompany. (4)ExplanationoftheBoardofDirectorsandtheBoardofSupervisorsconcerningthe“non-standard”auditor’sreportissuedbytheCPAsfirmfortheReportingPeriod □Applicable√Notapplicable BoardChairman:LiuZibin LuThaiTextileCo.,Ltd. 31August2016