### Overview Lutai Textile Co., Ltd. has presented key updates during the 33rd session of its board of directors in 2025, with significant changes in governance structure and strategic financial plans. This report summarizes these critical business developments that illustrate the company's pursuit of stability and enhancement in its operational management.

### Key Business Changes The most notable changes include: 1. **Board Member Changes**: The nomination of candidates for the 11th Board of Directors, both independent and non-independent members, signifies a commitment to stable governance. Notable non-independent director candidates include Liu Zibin and Xu Zhihan, while independent candidates comprise Yu Mingtang and Zhu Beina. 2. **Amendments to Corporate Regulations**: The revision of the company's Articles of Association and various meeting rules underscores Lutai Textile's ongoing efforts to refine its internal management and governance framework. 3. **Derivatives Trading Plan**: Approval of a derivatives trading plan reflects a more aggressive stance on financial strategy, indicating the company is utilizing financial instruments to enhance risk management and value creation.

### Financial Trends While specific financial figures have not been disclosed in the board meeting announcement, the revisions to governance and the introduction of derivatives trading suggest a proactive approach towards optimizing capital allocation and enhancing financial performance.

### Management Commentary The management’s tone appears cautiously optimistic, primarily focusing on the importance of incorporating shareholder feedback through the initiation of an extraordinary shareholders' meeting. This reflects a desire for transparency and engagement in the decision-making process, which may foster investor confidence.

### Risks and Outlook There are notable risks accompanying these changes: 1. **Executive Risks**: Although new director candidates exhibit strong qualifications, ongoing scrutiny of board consistency and independence is essential to mitigate potential decision-making risks. 2. **Market Environment Variability**: Rapid changes in market conditions or challenges in adapting internal management processes could result in operational risks, especially with the newly introduced derivatives trading and governance adjustments. Investors should keep an eye on regulatory changes that could impact compliance and governance standards.

### Conclusion In summary, Lutai Textile Co., Ltd. is focusing on enhancing its governance structure through board nominations and regulatory updates while exploring new financial strategies such as derivatives trading. Although specific financial data remains unavailable, the strategic initiatives signify an effort to stabilize and potentially grow the company's market position. Stakeholders should remain vigilant regarding potential risks and the broader market response in the upcoming quarters.