珀莱雅：珀莱雅化妆品股份有限公司2022年第三季度报告（英文版）.docx

The Third Quarter Report in 2022 Stock Code: 603605 Stock Abbreviation : Proya Bond Code: 113634 Bond Abbreviation: Proya convertible bond Proya Cosmetics Co., Ltd. The Third Quarter Report in 2022 The Board of Directors and all directors of the Company warrant that the contents herein are free from misrepresentations, misleading statements or material omissions, and they will be jointly and severally liable for the authenticity, accuracy and completeness thereof. Important Note: The Board of Directors, Board of Supervisors, directors, supervisors and officers of the Company warrant that the contents of the Quarterly Report are authentic, accurate and complete without any misrepresentations, misleading statements or material omissions, and they will be jointly and severally liable therefor. The Chairman, the chief financial officer and the head of the accounting department warrant that the financial statements herein is authentic, accurate and complete. Whether the third quarter financial statements have been audited. £Yes No I. Main Financial Data (I) Main Accounting Data and Financial Indicators Unit: Yuan Currency: RMB Item The Reporting Period YOY change in the Reporting Period (%) From the beginning of the year to the end of the Reporting Period YOY change in the period from the beginning of the year to the end of the Reporting Period (%) Operating income 1,336,130,787.67 22.07 3,962,074,031.96 31.53 Net profit attributable to shareholders of the listed 198,375,641.64 43.55 495,315,157.18 35.96 company Net profit attributable to shareholders of the listed company after deducting non-recurring profit or loss 196,100,724.25 44.07 476,998,142.78 33.84 Net cash flow from operating activities N/A N/A 771,873,333.67 57.37 Basic earnings per share (RMB/share) 0.71 2.90 1.76 -3.30 Diluted earnings per share (RMB/share) 0.70 1.45 1.74 -3.87 Weighted average return on equity (%) 6.59 Up by 1.17 percentage points 16.51 Up by 2.01 percentage points End of the Reporting Period End of prior year Change at the end of the Reporting Period over the end of prior year (%) Total assets 5,461,758,028.57 4,633,049,783.03 17.89 Owners equity attributable to shareholders of the listed company 3,178,288,666.18 2,876,975,835.98 10.47 Note: “The Reporting Period” shall refer to the 3-month period ended September 30, 2022, as follows. (II) Items and Amounts of Non-recurring Profit or Loss Unit: Yuan Currency: RMB Item Amount in the Reporting Period Amount in the period from the beginning of the year to the end of the Reporting Period Note Gains or losses from disposal of non-current assets Unauthorized examination and approval, or lack of official approval documents, or occasional tax revenue return and abatement Government grants recognized in profit or loss for the current period (excluding government grants that are closely 3,140,446.53 23,580,544.90 related to the Companys business operations and gained at a fixed amount or quantity according to national uniform standards) Capital occupation fees charged to the non-financial enterprises and included in profit or loss for the current period Gains when the investment cost of acquiring a subsidiary, an associate and a joint venture is less than the fair value of the identifiable net assets of the investee Gains or losses from exchange of non-monetary assets Gains or losses from entrusting others with investment or asset management Asset impairment provision made resulting from force majeure such as natural disasters Gains or losses from debt restructuring Enterprise restructuring fees, such as staffing expenses and integration fees Gains or losses that exceeds the fair value in transaction with unfair price Current net gains or losses of subsidiaries established by business combination involving enterprises under common control from the beginning of the period to the combination date Gains or losses on contingencies that have no relation with the normal operation of the Company Gains or losses from change in fair value by held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities and derivative financial liabilities, and investment income from disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and other debt investments, excluding the effective hedging businesses related with normal operations of the Company Reversal of impairment provision of accounts receivable and contract assets that have undergone impairment test alone Gains or losses from outward entrusted loaning Gains or losses from changes in the fair values of investment properties that are subsequently measured using the fair value model Impact of a one-time adjustment on current profit and loss according to the requirements of tax and accounting laws and regulations Custody fees of entrusted operation Other non-operating income and expenses besides the above items -66,506.02 214,968.49 Other items that conform to the definition of non-recurring profit or loss Less: Effect of income tax 806,896.17 4,416,105.71 Effect of minority equity (after tax) -7,873.05 1,062,393.28 Total 2,274,917.39 18,317,014.40 Descriptions on classifying non-recurring profit and loss items defined in the Explanatory Announcement No. 1 for Public Company Information Disclosures - Non-recurring Profit and Loss as recurring profit and loss items. £Applicable N/A (III) Changes in Main Accounting Data and Financial Indicators and Main Reasons Applicable £N/A Item Change ratio (%) Primary reasons Operating income (from the beginning of the year to the end of the Reporting Period) 31.53 Mainly due to: 1. the YOY increase in the online channel income; 2. the rapid growth of the Second-growth-curve brands. Net profit attributable to shareholders of the listed company (the Reporting Period) 43.55 Mainly due to: 1. the YOY increase in the online channel income; 2. the increase of gross profit margin and the YOY increase in gross profit, operating profit and total profit. Net profit attributable to shareholders of the listed company after deducting non-recurring profit or loss (the Reporting Period) 44.07 The specific reasons are the same as above. Net profit attributable to shareholders of the listed company (from the beginning of the year to the end of the Reporting Period) 35.96 Mainly due to: 1. the YOY increase in the online channel income; 2. (1) Ningbo Timage Cosmetics Co., Ltd. (a controlled subsidiary of the Company) turned losses into profits during the Reporting Period; (2) Shanghai Healthlong Biochemical Technology Co., Ltd. (a controlled subsidiary of the Company) has ceased to be included in the consolidated financial statements since May 2021. Net profit attributable to shareholders of the listed company after deducting non-recurring profit or loss (from the beginning of the year to the end of the Reporting Period) 33.84 The specific reasons are the same as above. Net cash flow from operating activities (from the beginning of the year to the end of the Reporting Period) 57.37 Mainly due to: the YOY increase in the operating income and the increase of cash inflows from operating activities. II. Shareholders Information (I) Total Number of Common Shareholders, Number of Preferred Shareholders with Voting Rights, and the Shareholding of Top Ten Shareholders Unit: share Total number of common shareholders by the end of the Reporting Period 13,764 Total number of preferred shareholders with voting rights by the end of the Reporting Period (if any) 0 Shareholdings of top ten shareholders Name of shareholder Nature of shareholder Number of shares held Shareholding ratio (%) Number of restricted shares Pledged, placed with mark, lock-up or not Share status Number HOU Juncheng Domestic natural person 97,670,741 34.45 0 None Hong Kong Securities Clearing Company Limited Other 65,496,052 23.10 0 None FANG Yuyou Domestic natural person 49,639,480 17.51 0 None China Construction Bank Co., Ltd. - Yinhua Fuyu Theme Hybrid Securities Investment Fund Other 5,900,165 2.08 0 None China Construction Bank Co., Ltd. - CUAM Consumer Industry Hybrid Securities Investment Fund Other 2,600,058 0.92 0 None Aberdeen Standard Investment Management (Asia) Co., Ltd. - Aberdeen Standard - China A-share Equity Fund Other 2,552,293 0.90 0 None Industrial and Commercial Bank of China Limited - Jingshun Changcheng Emerging Growth Hybrid Securities Investment Fund Other 2,380,000 0.84 0 None CAO Liangguo Domestic natural person 2,268,997 0.80 0 None Industrial and Commercial Bank of China Limited - CUAM Consumption Upgrade Hybrid Securities Investment Fund Other 1,100,038 0.39 0 None XU Junqing Domestic natural person 926,239 0.33 0 None Shareholding of top ten unrestricted shareholders Name of shareholder Number of unrestricted outstanding shares held Type and number of shares Type Number HOU Juncheng 97,670,741 RMB common stock 97,670,741 Hong Kong Securities Clearing Company Limited 65,496,052 RMB common stock 65,496,052 FANG Yuyou 49,639,480 RMB common stock 49,639,480 China Construction Bank Co., Ltd. - Yinhua Fuyu Theme Hybrid Securities Investment Fund 5,900,165 RMB common stock 5,900,165 China Construction Bank Co., Ltd. - CUAM Consumer Industry Hybrid Securities Investment Fund 2,600,058 RMB common stock 2,600,058 Aberdeen Standard Investment Management (Asia) Co., Ltd. - Aberdeen Standard - China A-share Equity Fund 2,552,293 RMB common stock 2,552,293 Industrial and Commercial Bank of China Limited - Jingshun Changcheng Emerging Growth Hybrid Securities Investment Fund 2,380,000 RMB common stock 2,380,000 CAO Liangguo 2,268,997 RMB common stock 2,268,997 Industrial and Commercial Bank of China Limited - CUAM Consumption Upgrade Hybrid Securities Investment Fund 1,100,038 RMB common stock 1,100,038 XU Junqing 926,239 RMB common stock 926,239 Description of the association relationship or concerted action of the above shareholders FANG Yuyou is the younger brother of HOU Junchengs spouse FANG Aiqin, so HOU Juncheng and FANG Yuyou are related. Description of the participation of the top 10 shareholders and the top 10 unrestricted shareholders in the margin trading and refinancing business (if any) None III. Other Reminders Other important information about the Companys business during the Reporting Period for the attentions of investors £Applicable N/A IV. Quarterly Financial Statements (I) Type of Audit Opinion £Applicable N/A (II) Financial Statements Consolidated Balance Sheet September 30, 2022 Prepared by: Proya Cosmetics Co., Ltd. Unit: Yuan Currency: RMB Audit Type: Unaudited Item September 30, 2022 December 31, 2021 Current assets: Cash and cash equivalents 2,894,581,365.15 2,391,048,249.81Balances with clearing agencies Placements with banks and other financial institutions Held-for-trading financial assets Derivative financial assets Notes receivable Accounts receivable 61,903,721.27 138,626,627.90Receivable financing 3,031,831.88 3,242,000.00Prepayments 174,958,003.94 58,406,647.11Premiums receivable Amounts receivable under reinsurance contracts Reinsurer's share of insurance contract reserves Other receivables 20,569,960.98 66,043,707.81Including: Interest receivable Dividends receivable Financial assets purchased under resale agreements Inventories 690,124,090.74 447,938,758.29Contract assets Held-for-sale assets Non-current assets due within one year Other current assets 36,682,817.91 53,534,962.39Total current assets 3,881,851,791.87 3,158,840,953.31Non-current assets: Loans and advances to customers Debt investments Other debt investments Long-term receivables Long-term equity investments 151,406,031.44 169,959,536.27Other investments in equity instruments 146,402,400.00 56,402,400.00Other non-current financial assets Investment properties 69,349,497.02 70,321,868.00Fixed assets 553,359,059.64 558,981,209.20Construction in progress 177,430,957.16 108,678,896.27Bearer biological assets Oil and gas assets Right of use assets Intangible assets 424,758,523.08 397,145,124.29Development expenditure Goodwill Long-term prepaid expenses 22,255,673.60 29,756,474.11Deferred income tax assets 30,463,707.85 38,796,018.02Other non-current Assets 4,480,386.91 44,167,303.56Total non-current assets 1,579,906,236.70 1,474,208,829.72Total assets 5,461,758,028.57 4,633,049,783.03Current liabilities: Short-term borrowings 200,251,506.85 200,251,506.85Loans from the central bank Taking from banks and other financial institutions Held-for-trading financial liabilities Derivative financial liabilities Notes payable 64,606,867.00 79,156,771.40Accounts payable 678,833,258.07 404,026,241.16Receipts in advance 527,929.95 173,769.85Contract liabilities 115,157,348.57 91,151,985.32Financial assets sold under repurchase agreements Customer deposits and deposits from banks and other financial institutions Funds from securities trading agencies Funds from underwriting securities agencies Employee benefits payable 117,186,385.92 78,649,049.72Taxes payable 109,722,579.78 99,893,176.97Other payables 227,670,691.33 62,162,153.55Including: Interest payable Dividends payable Fees and commissions payable Amounts payable under reinsurance contracts Held-for-sale liabilities Non-current liabilities due within one year Other current liabilities 11,562,619.94 9,521,415.32Total current liabilities 1,525,519,187.41 1,024,986,070.14Non-current liabilities: Insurance contract reserves Long-term borrowings Bonds payable 718,644,660.27 695,586,778.80Including: Preferred stock Perpe