China Linen Textile Industry, Ltd.’s Common Shares (Cayman Islands) has been deleted from OTC Bulletin Board effective July 23, 2012 on account of its ineligibility for quotation on OTCBB due to quoting inactivity under SEC Rule 15c2-11.

Ms. Jodie Zheng Wehner has tendered her resignation as chief financial officer of China Linen Textile Industry, Ltd., effective from June 1, 2012. Ms. Wehner's resignation is for personal reasons and is not related to any known disagreement with the company on any matter. On May 31, 2012, the board of directors of the company resolved to accept the resignation of Ms. Wehner and to appoint Ms. Xiaofang Huang to serve as the company's chief financial officer, effective from June 1, 2012. Ms. Huang has been serving as the company's financial controller since January 31, 2010. Prior to that, she was chief financial officer of the company from 2008.

China Linen Textile Industry, Ltd. reported earnings results for the third quarter and nine months ended September 30, 2011. For the quarter, the company's revenue increased 15.2% to $16.2 million compared to $14.0 million a year ago. The increase in revenue was primarily attributable to increased sales volume of linen yarn due to higher demand from new customers. Net income increased 8.2% to $3.1 million or $0.45 per diluted share compared to net income of $2.8 million or $0.49 per diluted share a year ago. Operating income increased 20.5% to $4.4 million compared to $3.7 million in the same period of 2010, while operating margin increased 119 basis points to 27.4%. For the nine months, revenue totaled $48.1 million, an increase of approximately 52% from $31.6 million for the nine months ended September 30, 2010. The increase in revenue was primarily attributable to increased sales volume of both linen fabric and linen yarn due to increased distribution channels, and increased sales prices. Operating income increased 68.0% to $13.7 million compared to $8.1 million in the same period of 2010, while operating margins increased 271 basis points to 28.5%. Net income was $9.7 million compared to $6.9 million for the nine months ended September 30, 2010, representing an increase of approximately 41.7%. Diluted earnings per share were $1.42, compared to $1.19 in the same period of 2010. The company generated $3.3 million cash from operations, an increase of 33.0% from $2.5 million in the same period last year. The book value of net assets per diluted share was approximately $6.11 as of September 30, 2011.