Stock Code: 603605 Short Name: Proya
Proya Cosmetics Co., Ltd.
2020 ANNUAL REPORT
Important Notice
I The Board of Directors, Board of Supervisors, directors, supervisors and senior
management of the Company warrant that the contents of the annual report are true,accurate and complete, without any misrepresentation, misleading statements ormaterial omissions, and will severally and jointly bear the legal responsibilitiesthereof.
II All directors of the Company attended the Board meeting.
III Pan-China Certified Public Accountants LLP has issued the audit report withstandard unqualified opinions to the Company.
IV Hou Juncheng, Chairman of the Company, Wang Li, CFO of the Company and Wang
Li, head of the public accountant (person in charge of accounting) warrant thetruthfulness, accuracy and completeness of the financial report in this annual report.
V Profit distribution plan or capitalization plan from capital reserve to share capital
approved by the Board of Directors during the Reporting PeriodThe Company shall distribute cash dividend of RMB 7.20 (tax inclusive) per 10 sharesto all shareholders registered on the equity registration date based on the total sharecapital registered as at the registration date of dividend-paying equity, with thedistributed cash dividend totaling RMB 144,804,186.00 (tax inclusive), but without bonusshares and capitalization from capital reserve to share capital. In case of a change inthe total share capital of the Company before the equity registration date of interestdistribution, the distribution ratio of each share will remain unchanged. The total amountof distribution shall be adjusted accordingly, and the specific adjustment shall befurther announced.
VI Risks statement of the forward-looking statements
√ Applicable□ Not applicable
Forward-looking statements including future plans and development strategiesinvolved in this annual report do not constitute the Company’s substantive commitmentsto investors. The investors are advised to pay attention to investment risks.
VII Is there any non-operating misappropriation of funds of the Company by any
controlling shareholders and their related partiesNo
VIII Has the Company provided any external guarantees in violation of thedecision-making proceduresNo
IX Whether more than half of the directors cannot guarantee the truthfulness, accuracyand completeness of the annual report disclosed by the CompanyNo
X Warning on significant risksThe Company has illustrated the risks in detail in this report. Please refer to“Potential Challenges and Risks” in the discussion and analysis on future developmentof the Company set out in “Section IV Discussion and Analysis of Operation”.
XI Others
□ Applicable√ Not applicable
Contents
Section I Definition ...... 5
Section II Company Profile and Key Financial Indicators ...... 7
Section III Business Overview ...... 12
Section IV Discussion and Analysis of Operation ...... 14
Section V Major Events ...... 44
Section VI Changes in Ordinary Shares and Shareholders ...... 104
Section VII Preferred Shares ...... 116
Section VIII Directors, Supervisors, Senior Management and Employees ...... 117
Section IX Corporate Governance ...... 129
Section X Corporate Bonds ...... 132
Section XI Financial Report ...... 133
Section XII Directory of Documents for Future Reference ...... 323
Section I DefinitionI DefinitionIn this report, unless the content requires otherwise, the following terms shall havethe following meanings:
Definition of common terms | ||
Proya, Proya Co., Ltd., the Company, Company | Proya Cosmetics Co., Ltd. | |
Huzhou Branch | Huzhou Branch of Proya Cosmetics Co., Ltd., a subsidiary of the Company | |
Proya Trade | Hangzhou Proya Trade Co., Ltd., a wholly-owned subsidiary of the Company | |
Korea Hanna | Hanna Cosmetics Co., Ltd., a wholly-owned subsidiary of the Company | |
Huzhou Anya | Anya (Huzhou) Cosmetics Co., Ltd., a wholly-owned subsidiary of Korea Hanna | |
Yueqing Laiya | Yueqing Laiya Trading Co., Ltd., a wholly-owned subsidiary of the Company | |
Huzhou UZERO | Huzhou UZERO Trading Co., Ltd., a wholly-owned subsidiary of the Company | |
Mijing Siyu (Hangzhou) | Mijing Siyu (Hangzhou) Cosmetics Co., Ltd., a wholly-owned subsidiary of the Company | |
Meiligu | Zhejiang Meiligu Electronic Commerce Co., Ltd., a wholly-owned subsidiary of the Company | |
Chuangdai E-commerce | Huzhou Chuangdai E-commerce Co., Ltd., a wholly-owned subsidiary of Meiligu | |
Hapsode (Hangzhou) | Hapsode (Hangzhou) Cosmetics Co., Ltd., a wholly-owned subsidiary of the Company | |
Korea Hapsode | Hapsode Co., Ltd., a wholly-owned subsidiary of Hapsode (Hangzhou) | |
Huzhou Hapsode | Huzhou Hapsode Trading Co., Ltd., a wholly-owned subsidiary of Hapsode (Hangzhou) | |
Shanghai Tiyu | Shanghai Tiyu Cosmetics Co., Ltd., a wholly-owned subsidiary of Hapsode (Hangzhou) | |
Danyang Hapsode | Danyang Hapsode Cosmetics Trading Co., Ltd., a wholly-owned subsidiary of Hapsode (Hangzhou) | |
Proya Commercial | Hangzhou Proya Commercial Management Co., Ltd., a wholly-owned subsidiary of the Company | |
Tiedingxian | Hangzhou Tiedingxian Catering Management Co., Ltd., a holding subsidiary of Proya Commercial | |
Tielexin Aini | Hangzhou Tielexin Aini Catering Management Co., Ltd., a wholly-owned subsidiary of Proya Commercial | |
Xiake Bar | Hangzhou Xiake Bar Catering Management Co., Ltd., a wholly-owned subsidiary of Proya Commercial | |
Snail Fitness | Hangzhou Proya Snail Fitness Co., Ltd., a wholly-owned subsidiary of Proya Commercial | |
HONGKONG KESHI | HONGKONG KESHI TRADING LIMITED, a holding subsidiary of the |
Company | ||
Hong Kong Xinghuo | Hong Kong Xinghuo Industry Limited, a wholly-owned subsidiary of the Company | |
Hong Kong Zhongwen | Hong Kong Zhongwen Electronic Commerce Co., Limited, a holding subsidiary of Hong Kong Xinghuo | |
Hong Kong Xuchen | Hong Kong Xuchen Trading Limited, a wholly-owned subsidiary of Hong Kong Xinghuo | |
Proya Luxembourg | Proya Europe SARL, a wholly-owned subsidiary of Hong Kong Xinghuo | |
Shanghai Zhongwen | Shanghai Zhongwen Electronic Commerce Co., Ltd., a holding subsidiary of the Company | |
Huzhou Niuke | Huzhou Niuke Technology Co., Ltd., a holding subsidiary of the Company | |
Hangzhou Wanyan | Hangzhou Wanyan Culture Media Co., Ltd., a holding subsidiary of Huzhou Niuke | |
Hong Kong Wanyan | Hong Kong Wanyan Electronic Commerce Co., Limited, a holding subsidiary of Huzhou Niuke | |
Huzhou Younimi | Huzhou Younimi Cosmetics Co., Ltd., a holding subsidiary of the Company | |
Korea Younimi | Korea Younimi Cosmetics Co., Ltd., a holding subsidiary of the Company | |
Ningbo TIMAGE | Ningbo TIMAGE Cosmetics Co., Ltd., a holding subsidiary of the Company | |
Ningbo Keshi | Ningbo Keshi Trading Limited, a holding subsidiary of the Company | |
Zhejiang Biyouti | Zhejiang Biyouti Cosmetics Co., Ltd., a holding subsidiary of the Company | |
Ningbo Proya | Ningbo Proya Enterprise Consulting Management Co., Ltd., a wholly-owned subsidiary of the Company | |
Zhejiang Qingya | Zhejiang Qingya Culture Art Communication Co., Ltd., a holding subsidiary of the Company | |
BOYA (Hong Kong) | BOYA (Hong Kong) Investment Management Co., Limited, a wholly-owned subsidiary of the Company | |
Japan OR | P.R.O CO., LTD., a holding subsidiary of BOYA (Hong Kong) | |
Hangzhou Weiluoke | Hangzhou Weiluoke Cosmetics Co., Ltd., a holding subsidiary of the Company | |
Hangzhou Yizhuo | Hangzhou Yizhuo Culture Media Co., Ltd., a wholly-owned subsidiary of the Company | |
Hangzhou Oumisi | Hangzhou Oumisi Trading Co., Ltd., a wholly-owned subsidiary of the Company | |
Huzhou Poyun | Huzhou Poyun Electronic Commerce Co., Ltd., a holding subsidiary of the Company | |
Guangzhou Qianxi | Guangzhou Qianxi Network Technology Co., Ltd., a wholly-owned subsidiary of the Company | |
Shanghai Healthlong | Shanghai Healthlong Biochemical Technology Co., Ltd., a holding subsidiary of the Company | |
Weifang Zhengyi | Weifang Zhengyi Network Technology Partnership (Limited Partnership) | |
China Securities | China Securities Regulatory Commission |
Regulatory Commission/CSRC | ||
Shanghai Stock Exchange | Shanghai Stock Exchange | |
Pan-China Certified Public Accountants, audit institution | Pan-China Certified Public Accountants LLP | |
Company Law | Company Law of the People's Republic of China | |
Securities Law | Securities Law of the People's Republic of China | |
Articles of Association | Articles of Association of Proya Cosmetics Co., Ltd. | |
RMB/RMB 0’000 | RMB/RMB 10,000 | |
Reporting period | 1 January 2020 to 31 December 2020 |
Section II Company Profile and Key Financial Indicators
I Company Information
Chinese name of the Company | 珀莱雅化妆品股份有限公司 |
Short name of the Company in Chinese | 珀莱雅 |
English name of the Company | Proya Cosmetics Co., Ltd. |
Abbreviation of English name of the Company | Proya |
Legal representative of the Company | Hou Juncheng |
II Contact Information
Board Secretary | Securities Affairs Representative | |
Name | Zhang Yefeng | Wang Xiaoyan |
Office address | 9/F, Proya Building, No.588 Xixi Road, Xihu District, Hangzhou City, Zhejiang Province | 9/F, Proya Building, No.588 Xixi Road, Xihu District, Hangzhou City, Zhejiang Province |
Telephone | 0571-87352850 | 0571-87352850 |
Fax | 0571-87352813 | 0571-87352813 |
proyazq@proya.com | proyazq@proya.com |
III Introduction to General Information
Registered address | No.588 Xixi Road, Liuxia Street, Xihu District, Hangzhou City, Zhejiang Province |
Postal code of registered address | 310023 |
Office address | Proya Building, No.588 Xixi Road, Xihu District, Hangzhou City, Zhejiang Province |
Postal code of office address | 310023 |
Website of the Company | http://www.proya-group.com |
proyazq@proya.com |
IV Information Disclosure and Place for Obtaining the Report
Media for the Company’s information disclosure | Shanghai Securities News, Securities Times |
CSRC's designated website for the Company’s Annual Report disclosure | http://www.sse.com.cn |
The Company’s Annual Report may be obtained at | Board of Director’s Office, Proya Building, No.588 Xixi Road, Xihu District, Hangzhou City, Zhejiang Province |
V Stock Information
Stock Information | ||||
Share class | Exchanges on which the stocks are listed | Stock short name | Stock code | Stock short name before change |
A share | Shanghai Stock Exchange | Proya | 603605 | None |
VI Other Relevant Information
Auditor of the Company (domestic) | Name | Pan-China Certified Public Accountants LLP |
Office address | Block B, China Resources Building, No.1366 Qianjiang Road, Jianggan District, Hangzhou City | |
Name of the signing accountant | Yin Zhibin, Wang Xiaokang |
VII Major Accounting Data and Financial Indicators for the Past Three Years(I) Major accounting data
Unit: Yuan Currency: RMB
Major accounting data | 2020 | 2019 | Year-on-year change (%) | 2018 |
Revenue | 3,752,386,849.02 | 3,123,520,211.77 | 20.13 | 2,361,248,766.72 |
Net profits attributable to shareholders of the listed company | 476,009,298.41 | 392,681,976.58 | 21.22 | 287,188,727.12 |
Net profit attributable to shareholders of the listed companies, net of non-recurring gains and losses | 469,935,904.22 | 386,170,257.02 | 21.69 | 277,682,743.63 |
Net cash flow generated from operating activities | 331,550,109.14 | 235,961,328.34 | 40.51 | 512,918,568.86 |
Major accounting data | End of 2020 | End of 2019 | Year-on-year change (%) | End of 2018 |
Net assets attributable to shareholders of the listed company | 2,391,535,435.94 | 2,029,687,883.68 | 17.83 | 1,694,310,463.85 |
Total assets | 3,636,882,185.29 | 2,979,365,076.82 | 22.07 | 2,860,042,557.71 |
(II) Key financial indicators
Key financial indicators | 2020 | 2019 | Year-on-year change (%) | 2018 |
Basic earnings per share (Yuan/share) | 2.37 | 1.96 | 20.92 | 1.44 |
Diluted earnings per share (Yuan/share) | 2.37 | 1.96 | 20.92 | 1.43 |
Basic earnings per share, net of non-recurring gains and losses (Yuan/share) | 2.34 | 1.93 | 21.24 | 1.39 |
Weighted average ROE (%) | 21.82 | 21.24 | Increase by 0.58 percentage points | 18.28 |
Weighted average ROE, net of non-recurring gains and losses (%) | 21.54 | 20.89 | Increase by 0.65 percentage points | 17.67 |
Explanation of major accounting data and financial indicators for the past three yearsby the end of the Reporting Period
□ Applicable√ Not applicable
VIII Accounting data difference between PRC GAAP and Overseas Accounting
Standards(I) Differences in net profit and net asset attributable to shareholders of the listed company in
financial reports disclosed under International Accounting Standards and PRC GAAP
□ Applicable√ Not applicable
(II) Differences in net profit and net assets attributable to shareholders of the listed companyin financial reports disclosed under overseas accounting standards and PRC GAAP
□ Applicable√ Not applicable
(III) Explanation on the differences between PRC GAAP and Overseas Accounting Standards:
□ Applicable√ Not applicable
IX Key Financial Data for the Year of 2020 by Quarter
Unit: Yuan Currency: RMB
Key financial indicators | 1st Quarter (Jan-Mar) | 2nd Quarter (Apr-Jun) | 3rd Quarter (Jul-Sept) | 4th Quarter (Oct-Dec) |
Revenue | 608,193,650.94 | 776,130,197.94 | 906,747,098.59 | 1,461,315,901.55 |
Net profit attributable to shareholders of the listed company | 77,728,276.22 | 101,038,744.54 | 106,232,700.41 | 191,009,577.24 |
Net profit attributable to shareholders of the listed company after non-recurring profit or loss | 83,469,428.49 | 98,996,965.70 | 105,814,578.25 | 181,654,931.78 |
Net cash flow generated from operating activities | -134,873,267.48 | 171,437,646.36 | 170,331,901.76 | 124,653,828.50 |
Note: Main reasons for quarterly fluctuation of operating revenue and net profitattributable to shareholders of the listed companies: The quarterly sales fluctuated incosmetics industry owing to the vulnerability to seasonal factors and holiday activities.For example, Q4 gathered the peak sales such as National Day, “Double Eleven” and“Double Twelve” shopping festivals. Therefore, the operating revenue and net profitof Q4 were higher than other quarters.
Explanation on difference between information by quarter and information disclosed in periodicalreports
□ Applicable√ Not applicable
X Items and Amounts of Non-recurring Gains or Losses
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Items of Non-recurring Gains or Losses | Amounts in 2020 | Notes (if applicable) | Amounts in 2019 | Amounts in 2018 |
Gains or losses on disposal of non-current assets | 150,560.30 | 43,245.67 | 22,987.42 | |
Tax returns and exemption with approval exceeding one's authority or without formal approval document, or on an accidental basis | 8,167.37 | |||
Government grants included in profits and losses for the current period, excluding those closely related to the normal business and of fixed amount or fixed quantity granted on an on-going basis in accordance with certain standards and in compliance with the State policies | 12,198,410.18 | 7,913,746.66 | 9,805,967.39 | |
Fund possession cost from non-financial business included | 27,000.00 |
in current profit or loss | ||||
Gains arising from investment costs for acquisition of subsidiaries, associates and joint ventures less than the fair values of attributable identifiable net assets of the invested entity at the time of acquisition | ||||
Profit and loss from exchange of non-currency assets | ||||
Gains or losses on entrusted investment or asset management | 401,621.91 | |||
Provision for asset impairment due to force majeure factors, such as natural disaster | ||||
Profit and loss from restructuring of debts | ||||
Enterprise restructuring charge, such as expenditure on staffing, integration cost | ||||
Profit and loss of the part exceeding fair value generated from transaction with unreasonable transaction price | ||||
Net current profit and loss of subsidiary generated from enterprise merger under common control from the beginning of the period to the date of merger | ||||
Profit and loss generated from contingencies unrelated to normal business of company | ||||
Investment income arising from changes in fair values held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities and derivative financial liabilities, and investment gains on the disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and other debt investment, except the Company normal operations related to effective hedging business | 2,266,301.37 | Investment income from disposal of financial asset designated as at fair value through profit or loss | 4,653,362.83 |
Reversal of provision for impairment of receivables and contract assets which are individually tested for impairment | 744,899.00 | |||
Profit and loss obtained from entrusted loans | ||||
Profit and loss generated from fair value change of investment real estate whose subsequent measurement is conducted with fair value model | ||||
Influences on current profit and loss of one-time adjustment to current profit or loss pursuant to the laws and regulations on tax and accounting | ||||
Trustee fee income obtained from entrusted operation | ||||
Other net non-operating income and expenses, other than the above items | -6,810,805.57 | -5,128,895.30 | 398,144.30 | |
Other profit and loss items conforming to the definition of non-recurring gains and losses | ||||
Effect of minority equity | -688,969.45 | 187,247.54 | 2,301.47 | |
Effect of income tax | -1,042,102.64 | -1,192,155.21 | -1,869,938.00 | |
Total | 6,073,394.19 | 6,511,719.56 | 9,505,983.49 |
XI Items Measured at Fair Values
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Items | Opening balance | Closing balance | Changes in the Period | Effect on profit for the Period |
Wealth management products | 71,450,000.00 | 0.00 | -71,450,000.00 | 0.00 |
Receivables financing | 2,150,000.00 | 5,531,997.32 | 3,381,997.32 | 0.00 |
Total | 73,600,000.00 | 5,531,997.32 | -68,068,002.68 | 0.00 |
XII Others
□ Applicable√ Not applicable
Section III Business Overview
I Description of the Company’s principal business, operation model and industrycondition during the Reporting Period(I) Principal businessThe Company is committed to building a new domestic beauty industry platform, mainlyengaged in the research and development, production and sales of beauty and personal care
products. It mainly owns "Proya", "Hapsode", "TIMAGE", "INSBAHA", and "CORRECTORS" brands.At present, the Company's brands have covered the beauty fields such as popular exquisiteskin care, make-up and high-efficacy skin care products:
1. Popular exquisite skin care brand
(1) Proya, focusing on technology skin care for young white-collar women. The mainprice range is RMB 100-300. This brand is sold both online and offline.
(2) Hapsode, specially tailored for young skin, is aimed at students and young womenin small towns. The main price range is RMB 50-100. This brand is sold mainly online.
2. Make-up brand
(1) TIMAGE is a professional make-up brand for new Chinoiserie dressers. The mainprice range is RMB 150-200. This brand is sold online.
(2) INSBAHA is a punk style make-up brand for the minority. The main price range isRMB 50-150. This brand is sold online.
3. High-efficacy skin care brand
CORRECTORS is a high-efficiency skin care brand. The main price range is RMB 260-600.This brand is sold online.
(II) Main operation model
1. Sales mode
The main sales channel is online sales, with offline sales as the auxiliary channel.
Online channels mainly include direct sales and distribution. Direct sales focus onplatforms such as Tmall and JD.COM, while expanding emerging platforms such as TikTokshops, and distribution focuses on platforms such as Taobao, JD.COM, Vipshop andPinduoduo.
Off-line channels are mainly operated by dealers. Channels include cosmeticsspecialty stores, malls and supermarkets, and single brand stores.
2. Production/R&D mode
The Company is mainly engaged in independent production, supplemented by OEMoutsourcing factories. It operates self-built skin care/personal care factories andmake-up factories.The Company takes independent research and development as the main R&D mode, supplementedby the industry-university-research cooperation mode. It maintains R&D cooperationrelations with leading raw material suppliers in the world, such as BASF China, AshlandChina and LIPOTRUE S.L. in Spain.
(III) Explanation on the industry
In accordance with theGuidelines for the Industry Classification of Listed Companies
issued by the China Securities Regulatory Commission, the industry to which the Companybelongs is chemical raw materials and chemical products manufacturing (classificationcode: C26); in accordance with theChina National Economic Industry Classification andCode(GB/T 4754-2011), the Company belongs to the industry of daily chemical productsmanufacturing (C268), and the subdivided industry is cosmetics manufacturing (C2682).
According to the statistics of the National Bureau of Statistics, the total retailsales of social consumer goods was RMB 39,198.1 billion in 2020, with a year-on-yeardecrease of 3.9%, of which the total amount of cosmetics was RMB 340 billion, up 9.5%year on year (retail sales of unit consumer goods above quota).
II Explanation on significant change in major assets of the Company during the Reporting
Period
□ Applicable√ Not applicable
III Analysis on core competitiveness during the Reporting Period
√ Applicable□ Not applicable
The Company's core competitiveness is mainly reflected in: building a self-drivenorganization with high efficiency and collaboration in front, middle and back groundswith "products, contents and operations" as the main line, and constructing a consistentoperation management system of "culture-strategy-mechanism-talents" from top to bottom,with culture as the traction, strategy as the guidance, mechanism and talents as the twowings, so as to fully implement the strategy.
Section IV Discussion and Analysis of Operation
I Discussion and Analysis of Operation
1. Year-on-year increase of operating revenue
The operating revenue was RMB 3.752 billion, with a year-on-year increase of 20.13%.
Where: The principal business income was RMB 3.748 billion, with a year-on-yearincrease of 20.26%.
Other business income was RMB 4,462,200.Principal business income:
(1) By channel
Sub-channel | Amount (in RMB 100 million) | Year-on-year increase or decrease in 2020 (%) | Year-on-year increase or decrease in 2019 (%) | Year-on-year increase or decrease in 2018 (%) | Percentage in 2020 (%) | Percentage in 2019 (%) | Percentage in 2018 (%) | |
Online | Direct sales | 15.91 | 79.63 | 88.25 | 90.19 | 60.63 | 53.53 | 45.77 |
Distribution | 10.33 | 34.36 | 37.95 | 40.97 | 39.37 | 46.47 | 54.23 | |
Sub-total | 26.24 | 58.59 | 60.97 | 59.91 | 70.01 | 53.09 | 43.57 | |
Offline | Cosmetics stores | 8.45 | -19.28 | 4.42 | 7.45 | 75.22 | 71.64 | 75.35 |
Others | 2.79 | -32.81 | 26.33 | 59.72 | 24.78 | 28.36 | 24.65 | |
Sub-total | 11.24 | -23.12 | 9.82 | 16.88 | 29.99 | 46.91 | 56.43 | |
Total | 37.48 | 20.26 | 32.11 | 32.41 | 100.00 | 100.00 | 100.00 |
Note: The proportion of online and offline subtotal refers to the proportion of principalbusiness revenue.
(2) By brand
Sub-brand | Amount (in RMB 100 million) | Year-on-year increase or decrease in 2020 | Year-on-year increase or decrease in 2019 | Year-on-year increase or decrease in 2018 | Percentage in 2020 (%) | Percentage in 2019 (%) | Percentage in 2018 (%) |
(%) | (%) | (%) | ||||||
Self-owned brand | Proya | 29.86 | 12.43 | 26.81 | 32.38 | 84.32 | 89.33 | 88.77 |
Other brands | 5.55 | 75.08 | 19.74 | 32.65 | 15.68 | 10.67 | 11.23 | |
Sub-total | 35.41 | 19.11 | 26.02 | 32.41 | 94.48 | 95.39 | 100.00 | |
Agent brand | Cross-border agency Brand | 2.07 | 44.09 | - | - | 5.52 | 4.61 | - |
Total | 37.48 | 20.26 | 32.11 | 32.41 | 100.00 | 100.00 | 100.00 |
Note: Among them, TIMAGE records revenue of RMB 121 million.
(3) By category
Category | Amount (in RMB 100 million) | Year-on-year increase or decrease in 2020 (%) | Year-on-year increase or decrease in 2019 (%) | Year-on-year increase or decrease in 2018 (%) | Percentage in 2020 (%) | Percentage in 2019 (%) | Percentage in 2018 (%) |
Skin care (including cleansing) | 32.42 | 11.38 | 24.89 | 32.29 | 86.50 | 93.40 | 98.80 |
Make-up | 4.65 | 181.91 | 482.43 | 42.59 | 12.41 | 5.29 | 1.20 |
Others | 0.41 | 0.47 | - | - | 1.09 | 1.31 | - |
Total | 37.48 | 20.26 | 32.11 | 32.41 | 100.00 | 100.00 | 100.00 |
2. Year-on-year increase of net profit
The net profit attributable to shareholders of the listed companies was RMB 476million, with a year-on-year increase of 21.22%.
The net profit attributable to shareholders of the listed companies, net ofnon-recurring gains and losses, was RMB 470 million, with a year-on-year increase of
21.69%.
Index | 2020 | 2019 | 2018 | Description |
1. Net profit margin | 12.04% | 11.73% | 12.14% | |
2. Gross profit margin | 63.55% | 63.96% | 64.03% | Due to the implementation of new revenue standards, the freight charge of RMB 118 million was listed in the principal business cost in the current period, and the gross profit margin excluding freight charge on comparable basis was 66.70% in 2020 |
3. Ratio of expenses to sales | 39.90% | 39.16% | 37.52% | 1. The online revenue occupied an increased proportion, and the investment for image publicity and brand promotion of the Company increased RMB 387 million compared with the prior year, with year-on-year growth of 46.17%; 2. Due to the implementation of new revenue standards, the freight charge of RMB 118 million was listed in the principal business cost in the current period (freight |
charge of RMB 76.25 million was included in the selling expense in the same period in 2019). | ||||
Where: Image promotion expense | 32.68% | 26.86% | 21.19% | |
4. Administrative expense ratio | 5.44% | 6.25% | 7.26% | |
5. R&D expense ratio | 1.92% | 2.39% | 2.17% | The R&D expense was essentially on par with the previous year. |
6. Turnover rate of accounts receivable (times) | 15.53 | 21.74 | 36.04 | Main reasons in the current period: (1) The growth rate of accounts receivable from online platform business (such as JD.COM and Vipshop) exceeded that of operating revenue, which affected the turnover rate; (2) Dealers were offered greater credit support to stabilize offline sales, and the balance of accounts receivable increased; (3) The impact of new brand business |
7. Turnover days of accounts receivable (days) | 23.18 | 16.56 | 9.99 | |
8. Inventory turnover rate (times) | 3.50 | 4.12 | 4.04 | Mainly due to the overstock for live streaming in Q4 of the current period |
9. Inventory turnover days (days) | 102.86 | 87.38 | 89.11 |
II Financial Performance during the Reporting PeriodDuring the Reporting Period, the Company’s operations focused on three aspects: productdrive, brand building and organizational reform.
1. Product drive
During the Reporting Period, the channel-driven strategy was rapidly upgraded to aproduct-driven strategy. Digital product management was implemented. The digitalmanagement was realized in the whole life cycle from insight into consumer market andproduct development to product listing. In addition, the strategy of popular singleproducts was implemented. Star single products with brand mind and representativenesswere created, so as to improve the per customer transaction and re-purchase rate andenhance brand loyalty. For example, Ruby Essence, Double Anti-aging Essence, DoubleAnti-aging Nightlight Eye Cream, TIMAGE Shading Powder and other popular single productswere developed.
2. Brand building
Proya brand continued to upgrade, with the upgrading of the product system as thecore, continuously enhancing the brand's sense of technology and youth, conveying thebrand's spirit of discovery, and closely binding with the younger generation of consumersfrom material to spirit. Consumers can intuitively feel that "Proya is really different".
In marketing activities, brand content was continuously and uniformly exportedthroughout the year around positioning, and the brand deeply interacts with consumersthrough original theme content, official announcement of new spokesperson,cross-border/IP and other forms, to continuously make innovation. Such activities include#Young Dreamers# in January; # Young People Fear Nothing# + official announcement of Sun
Li in March; official announcement of Cai Xukun in April; #Take on adventure for lovewhen you are young# in May; Proya * Nayuku, #Realize your dream while you are young# inJune; Nightlight * Tmall Black Box in July; PROYA* Young Artist Jiang Yueyin in September;PROYA* Eastsea Festival in October; and TIMELAB press conference +PROYA* Bu Kewen and#Just do it while you are young in November.
3. Organizational reform
Organizational level: Focused on building a digitalmiddle platform: the productmiddle platform deepened the strategy of popular single products and hot products; theaccurate promotion ROI strategies of the middle platform were launched. The virtualproject organization form with products and delivery as the main line was adopted to createan end-to-end, efficient and self-driven process organization.Talent: The Company continued to further promote the talent supply chain mechanismthat matches the business, selected talents accurately, identified talents quickly andemployed talents efficiently, so as to gradually build a young team with strong fightingcapacity, learning ability, self-driven ability and entrepreneurial passion.Mechanism: The Company advocated the “three-high" performance culture of "highinvestment, high performance and high return", and established a performance managementsystem of "setting goals, focusing on processes and getting results"; around the businessstrategy, the Company made every effort to build a short (quarterly performance, projectincentives), medium (annual excess dividends) and long-term (equity incentives, partners)diversified business incentive system.
(I) Analysis of principal business
1. Analysis of change in certain items in income statement and cash flow statement
Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the same period last year | Change in the proportion (%) |
Revenue | 3,752,386,849.02 | 3,123,520,211.77 | 20.13 |
Cost of sales | 1,367,561,949.78 | 1,125,573,226.23 | 21.50 |
Selling expenses | 1,497,058,943.34 | 1,223,031,824.07 | 22.41 |
Administrative expenses | 204,279,378.68 | 195,259,927.02 | 4.62 |
R&D expenses | 72,200,028.77 | 74,602,606.55 | -3.22 |
Financial expenses | -13,607,115.53 | -9,494,812.30 | Not applicable |
Net cash flow generated from operating activities | 331,550,109.14 | 235,961,328.34 | 40.51 |
Net cash flow generated from investing activities | 14,534,157.08 | -54,596,265.69 | Not applicable |
Net cash flow from financing activities | -43,382,734.32 | -209,256,879.22 | Not applicable |
2. Analysis of revenue and cost
√ Applicable□ Not applicable
Explanation on the reason for change in operating revenue: Mainly due to the growth ofrevenue from online channels.Explanation on the reason for change in operating cost:
The year-on-year increase achieved RMB 242 million, up 21.50%. The main reasons are asfollows:
1. The operating revenue increased and the operating cost increased correspondingly;
2. Due to the implementation of new revenue standards, the freight charge of RMB 118million was listed in the principal business cost in the current period.Explanation on the reason for change in selling expense:
The selling expense was RMB 1.497 billion in 2020, accounting for 39.90% of the operatingrevenue (39.16% in the same period last year). The year-on-year increase of sellingexpense achieved RMB 274 million, up 22.41%. The main reasons are as follows:
1. The online revenue occupied an increased proportion, and the investment for imagepublicity and brand promotion of the Company increased RMB 387 million compared with theprior year, with year-on-year growth of 46.17%;
2. Due to the implementation of new revenue standards, the freight charge of RMB 118million was listed in the principal business cost in the current period (freight chargeof RMB 76.25 million was included in the selling expense in the same period in 2019).Explanation on the reason for change in administrative expense:
The administrative expense was RMB 204 million in 2020, accounting for 5.44% of theoperating revenue (6.25% in the same period last year). The administrative expense,increased RMB 9.02 million on year-on-year basis, up 4.62%, was essentially on par withthe previous year.Explanation on the reason for change in R&D expenses:
The R&D expense was RMB 72.2 million in 2020, accounting for 1.92% of the operating revenue(2.39% in the same period last year). It was essentially on par with the previous year.The R&D expense of the parent company was 3.96% in 2020 (4.51% in the same period lastyear).Explanation on the reason for change in financial expense: Mainly due to the increaseof interest income.Explanation on the reason for change in net cash flow generated from operatingactivities:
The year-on-year net flow increased RMB 95.59 million, mainly due to the followings:
1. Increase of cash: The year-on-year increase of sales outstanding achieved RMB 728million;
2. Decrease of cash: The goods payment increased RMB 171 million on year-on-year basis,and the cash paid for other operating activities increased RMB 484 million.Explanation on the reason for change in net cash flow generated from investingactivities:
The year-on-year net flow increased by RMB 69.13 million, mainly due to the followings:
1. Increase of cash: Increase of net redemption of wealth management products and increaseof monetary capital for new consolidated subsidiary, i.e., acquisition of “ShanghaiHealthlong”;
2. Decrease of cash: The year-on-year increase for investment on associate and otherequity as well as expenditure for the acquisition of fixed assets and construction inprogress in the current period.Explanation on the reason for change in net cash flow generated from financingactivities:
The year-on-year net flow increased by RMB 166 million, mainly due to the followings:
1. The short-term borrowings from banks had a year-on-year net increase of RMB 170 million,
and the outlay for debt payment had a year-on-year net decrease of RMB 46 million. Forthese two items, the net cash inflows increased by RMB 216 million;
2. The interest expenditure for dividend distribution increased by RMB 30 million onyear-on-year basis.
(1). Result of principal business by industry, product and region
Unit: Yuan Currency: RMB
Result of principal business by industry | ||||||
By industry | Revenue | Cost of sales | Gross margin (%) | Change in revenue from last year (%) | Change in cost from last year (%) | Change in gross profit margin from last year (%) |
Beauty and personal care industry | 3,747,924,600.60 | 1,363,486,774.26 | 63.62 | 20.26 | 21.71 | Decrease by 0.43 percentage points |
Result of principal business by product | ||||||
By product | Revenue | Cost of sales | Gross margin (%) | Change in revenue from last year (%) | Change in cost from last year (%) | Change in gross profit margin from last year (%) |
Skin care (including cleansing) | 3,242,093,549.02 | 1,139,865,475.50 | 64.84 | 11.38 | 11.02 | Increase by 0.11 percentage points |
Make-up | 464,967,347.81 | 197,578,914.36 | 57.51 | 181.91 | 213.38 | Decrease by 4.26 percentage points |
Other categories | 40,863,703.77 | 26,042,384.40 | 36.27 | 0.47 | -14.60 | Increase by 11.25 percentage points |
Total | 3,747,924,600.60 | 1,363,486,774.26 | 63.62 | 20.26 | 21.71 | Decrease by 0.43 percentage points |
Result of principal business by region | ||||||
By geography | Revenue | Cost of sales | Gross margin (%) | Change in revenue from last | Change in cost from last year (%) | Change in gross profit margin from last year (%) |
year (%) | ||||||
Northeast China | 44,304,893.79 | 15,645,677.45 | 64.69 | -30.34 | -32.65 | Increase by 1.21 percentage points |
North China | 111,815,638.32 | 45,042,729.22 | 59.72 | -35.95 | -32.60 | Decrease by 2.00 percentage points |
East China | 805,871,057.44 | 277,383,905.03 | 65.58 | 41.83 | 32.09 | Increase by 2.54 percentage points |
South China | 78,086,349.46 | 31,545,110.66 | 59.60 | -56.84 | -54.37 | Decrease by 2.19 percentage points |
Central China | 209,350,223.42 | 82,846,339.82 | 60.43 | -46.97 | -43.57 | Decrease by 2.39 percentage points |
Northwest China | 72,627,248.27 | 24,751,079.45 | 65.92 | -31.79 | -30.69 | Decrease by 0.54 percentage points |
Southwest China | 143,373,945.60 | 51,533,131.56 | 64.06 | -7.33 | -2.99 | Decrease by 1.61 percentage points |
Hong Kong, China and overseas | 127,445,152.37 | 110,143,260.74 | 13.58 | -13.85 | -14.30 | Increase by 0.46 percentage points |
Others (some e-commerce channels) | 2,155,050,091.93 | 724,595,540.33 | 66.38 | 62.61 | 87.25 | Decrease by 4.42 percentage points |
Total | 3,747,924,600.60 | 1,363,486,774.26 | 63.62 | 20.26 | 21.71 | Decrease by 0.43 percentage points |
Explanation on result of principal business by industry, product and geography
(1) Due to the implementation of new revenue standards, the freight charge of RMB 118million was listed in the principal business cost in the current period, and the grossprofit margin of principal business excluding freight charge on comparable basis was 66.80%in 2020, increased by 2.75 percentage points over the previous year.
(2) Increase in beauty and personal careindustry: The increase of principal businessincome in the current year was mainly from the online sales of RMB 2.624 billion, withyear-on-year growth of 58.59%.
(3) Increase in make-up: The main reason lies in the development of new make-up productsin the Reporting Period (including in-house and OEM products). For example, “TIMAGE”,the new make-up brand in the Reporting Period, witnessed revenue of RMB 121 million.
(4) Increase by regions: The increase in East China is mainly due to the increase of online
distribution; the revenue of others (part of the E-commerce) presented a year-on-yeargrowth of 62.61%; the revenue of other regions except E-commerce and East China decreasedto varying degrees: mainly due to the year-on-year decrease of online revenue.
(2). Analysis of production and sales volume
√ Applicable□ Not applicable
Major products | Unit | Production | Sales | Inventory | Change in production from last year | Change in sales from | Change in inventory from last year |
(%) | last year (%) | (%) | |||||
Beauty and personal care product | Piece | 194,003,300 | 180,825,866 | 47,873,372 | 15.29 | 10.00 | 37.98 |
Explanation on production and sales volumeBoth in-house and OEM products are included in the above table, but excluding the quantityfor products like cross-border agent brand.
(3). Analysis of cost
Unit: Yuan
By industry | |||||||
By industry | Cost item | Amount in the current period | Percentage of total costs for the current period (%) | Amount in the same period last year | Percentage of total costs for the same period last year (%) | Percentage change in the amount for the current period as compared to the same period last year (%) | Explanation |
Beauty and personal care industry | Raw materials | 851,018,281.40 | 62.42 | 799,853,363.25 | 71.39 | 6.40 | |
Labor and manufacturing costs | 82,914,903.34 | 6.08 | 78,047,754.49 | 6.97 | 6.24 | ||
Purchases | 311,700,853.56 | 22.86 | 242,407,770.07 | 21.64 | 28.59 | ||
Freight charge | 117,852,735.96 | 8.64 | |||||
Sub-total | 1,363,486,774.26 | 100.00 | 1,120,308,887.81 | 100.00 | 21.71 | ||
By product | |||||||
By product | Cost item | Amount in the current period | Percentage of total costs for the current period (%) | Amount in the same period last year | Percentage of total costs for the same period last year (%) | Percentage change in the amount for the current period as compared to the same period last year (%) | Explanation |
Skin care (including | Raw materials | 798,070,230.37 | 70.02 | 769,807,079.06 | 74.97 | 3.67 |
cleansing) | Labor and manufacturing costs | 76,267,474.56 | 6.69 | 74,427,379.74 | 7.25 | 2.47 | |
Purchases | 164,300,108.50 | 14.41 | 182,531,687.96 | 17.78 | -9.99 | ||
Freight | 101,227,662.07 | 8.88 | |||||
Sub-total | 1,139,865,475.50 | 100.00 | 1,026,766,146.76 | 100.00 | 11.02 | ||
Make-up | Raw materials | 52,948,051.03 | 26.80 | 30,046,284.19 | 47.66 | 76.22 | Sales increase of new make-up products |
Labor and manufacturing costs | 6,647,428.78 | 3.36 | 3,620,374.75 | 5.74 | 83.61 | Sales increase of new make-up products | |
Purchases | 121,703,172.90 | 61.60 | 29,381,356.62 | 46.60 | 314.22 | Mainly due to the sales of new brand TIMAGE | |
Freight | 16,280,261.65 | 8.24 | |||||
Sub-total | 197,578,914.36 | 100.00 | 63,048,015.56 | 100.00 | 213.38 | ||
Other categories | Raw materials | ||||||
Labor and manufacturing costs | |||||||
Purchases | 25,697,572.16 | 98.68 | 30,494,725.49 | 100.00 | -15.73 | ||
Freight | 344,812.24 | 1.32 | |||||
Sub-total | 26,042,384.40 | 100.00 | 30,494,725.49 | 100.00 | -14.60 | ||
Total | 1,363,486,774.26 | 1,120,308,887.81 | 21.71 |
Explanation on other situations of cost analysisNone
(4). Major customers and suppliers
√ Applicable□ Not applicable
Sales of the top 5 customers amounted to RMB 565,284,600, accounting for 15.08% of thetotal annual sales. Of the sales of the top 5 customers, sales of related parties amountedto RMB0.00, accounting for 0.00% of the total annual sales.
Procurement of the top 5 suppliers amounted to RMB261,040,300, accounting for 19.65% ofthe total annual procurement. Of the procurement of the top 5 suppliers, procurement ofrelated parties amounted to RMB0.00, accounting for 0.00% of the total annual procurement.
Other particularsNone
3. Expense
√ Applicable□ Not applicable
Unit: Yuan
Item | 2020 | 2019 | Increase or decrease of the current period | Growth rate |
Selling expenses | 1,497,058,943.34 | 1,223,031,824.07 | 274,027,119.27 | 22.41% |
Administrative expenses | 204,279,378.68 | 195,259,927.02 | 9,019,451.66 | 4.62% |
R&D expenses | 72,200,028.77 | 74,602,606.55 | -2,402,577.78 | -3.22% |
Financial expenses | -13,607,115.53 | -9,494,812.30 | -4,112,303.23 | Not applicable |
4. R&D investment
(1). Table of R&D investment
√ Applicable□ Not applicable
Unit: Yuan
Expensed R&D investment in the current period | 72,200,028.77 |
Capitalized R&D investment in the current period | |
Total R&D investment | 72,200,028.77 |
Proportion of total R&D investment to operating revenue (%) | 1.92 |
Number of the Company’s R&D staff | 196 |
Percentage of the number of R&D staff to the Company’s total number of employees (%) | 6.76 |
Percentage of capitalized R&D investment (%) |
(2). Explanation
□ Applicable√ Not applicable
5. Cash flow
√ Applicable□ Not applicable
Item | Amount in the current period | Amount in the same period last year | Growth rate (%) | Explanation |
Net cash flow generated from operating activities | 331,550,109.14 | 235,961,328.34 | 40.51 | The year-on-year net flow increased by RMB 95.59 million, mainly due to the followings: 1. Cash inflow: The year-on-year increase of cash received from sales of goods achieved RMB 728 million; 2. Cash outflow: The cash paid for goods and services increased by RMB 171 million on year-on-year basis, and the cash paid for other operating activities increased by RMB 484 million |
Net cash flow generated from investing activities | 14,534,157.08 | -54,596,265.69 | Not applicable | The year-on-year net flow increased by RMB 69.13 million, mainly due to the followings: 1. Increase of cash: (1) The net redemption of wealth management products was RMB 213 million in the current period (RMB 110 million in the same period last year), with year-on-year net flow increase of RMB 103 million; (2) The cash balance of “Shanghai Healthlong of RMB 66.05 million at the acquisition; 2. Decrease of cash: (1) The year-on-year increase for investment on associate and other equity was RMB 76.29 million in the current period; (2) The year-on-year increase for the acquisition of fixed assets and construction in progress was RMB 20.32 million. |
Net cash flow from financing activities | -43,382,734.32 | -209,256,879.22 | Not applicable | The year-on-year net flow increased by RMB 166 million, mainly due to the followings: 1. The short-term borrowings from banks had a year-on-year net increase of RMB 170 million, and the outlay for debt payment had a year-on-year net decrease of RMB 46 million. For these two items, the net cash inflows increased by RMB 216 million; 2. The interest expenditure for dividend distribution increased by RMB 30 million on year-on-year basis |
Other cash received from | 81,739,953.02 | 27,439,741.01 | 197.89 | Mainly due to amount from the newly consolidated subsidiary in |
operating activities | the current period | |||
Cash paid for other operating activities | 1,422,965,037.76 | 939,446,827.05 | 51.47 | The main reason lies in the year-on-year increase of image promotion expense of RMB 434 million in the current period, including: 1. increase for new consolidated subsidiary; 2. increase of image promotion expense for new incubation brands and investment brands |
Cash received from disposal of investments | 213,200,000.00 | 380,000,000.00 | -43.89 | Mainly due to the year-on-year decrease of wealth management product redemption |
Cash received from returns on investments | 2,266,301.37 | 4,653,362.83 | -51.30 | Mainly due to the earnings change from wealth management products |
Other cash received relating to investing activities | 66,052,759.40 | 2,500,000.00 | 2,542.11 | The cash balance of “Shanghai Healthlong” at the acquisition; repayment of the loan principal of RMB 2.5 million was made by Beijing Mitangpai Cosmetics Co., Ltd. in the same period last year |
Cash paid for investment | 81,930,000.00 | 275,588,295.00 | -70.27 | Main reasons: 1. The investment on associate and other equity totaled RMB 66.58 million, and the equity transfer fund of RMB 15.35 million was paid to minority shareholders in the current period; 2. Cash of RMB 269.95 million was paid for purchase of wealth management products, and the equity transfer fund of RMB 5.64 million was paid to minority stockholders in the same period last year |
Other cash paid relating to investing activities | 1,035,148.02 | 2,500,000.00 | -58.59 | Net cash paid for disposal of Huzhou Tizhi Cosmetics Co., Ltd. in the current period; loan of RMB 2.5 million to Beijing Mitangpai Cosmetics Co., Ltd. in the same period last year |
Proceeds received from financing activities | 2,266,300.00 | 21,085,273.44 | -89.25 | The main reason lies in the decrease of equity investment by minority shareholders of the consolidated holding subsidiary in 2020 as compared with 2019 |
Cash received from borrowings | 299,000,000.00 | 128,939,749.33 | 131.89 | Mainly due to the year-on-year increase of short-term borrowings from bank |
Dividends paid, profit distributed or interest paid | 127,734,055.29 | 97,824,202.19 | 30.58 | Mainly due to the year-on-year increase of cash dividend distribution of RMB 32.2 million |
Other cash paid for financing-related activities | 2,684,110.55 | 1,657,699.80 | 61.92 | Mainly due to the year-on-year increase of equity repurchase payment in 2020 |
(II) Explanation on significant change of profit caused by non-principal business
□ Applicable√ Not applicable
(III) Analysis of assets and liabilities
√ Applicable□ Not applicable
1. Assets and liabilities
Unit: Yuan
Items | Amount as at the end of the current period | Percentage of total assets at the end of current period (%) | Amount as at the end of last period | Percentage of total assets at the end of last period (%) | Change in percentage for the current period over the last period (%) | Explanation |
Held-for-trading financial assets | 71,450,000.00 | 2.40 | -100.00 | Mainly due to redemption on maturity of wealth management products purchased at the beginning of the period in the current period | ||
Accounts receivable | 284,878,419.58 | 7.83 | 198,409,249.19 | 6.66 | 43.58 | Main reasons: 1. The accounts receivable from online platform business increased; for example, the accounts receivable of JD.COM and Vipshop increased by RMB 29.59 million; 2. Dealers were offered greater credit support to stabilize offline sales, and the balance of accounts |
receivable increased; 3. the accounts receivable was increased due to new brand business, etc. | ||||||
Receivables financing | 5,531,997.32 | 0.15 | 2,150,000.00 | 0.07 | 157.30 | Mainly due to the increase in the balance of bank acceptance bill at the end of the period |
Prepayment | 82,742,815.92 | 2.28 | 53,313,963.76 | 1.79 | 55.20 | Mainly due to the increase of advance payment and expense of the new consolidated subsidiary in the current period |
Other receivables | 48,733,527.35 | 1.34 | 15,269,949.97 | 0.51 | 219.15 | Main reasons: 1. The deposit receivable of the new consolidated subsidiary increased in the current period; 2. Epidemic prevention and control supplies were proposed to be purchased from abroad during the outbreak of COVID-19, but no consensus was reached as to the return policy, and further negotiation was required |
Inventories | 468,641,017.75 | 12.89 | 313,649,003.07 | 10.53 | 49.42 |
Other current | 35,235,8 | 0.97 | 11,723,2 | 0.39 | 200.56 | Main reasons: 1. |
assets | 11.27 | 68.59 | According to the new revenue standards, it was expected that the net return of RMB 5.76 million at the end of the period should be included in “estimated liabilities”, but it was actually reflected as “estimated liabilities of RMB 10.19 million” and “other current assets of RMB 4.43 million” based on the amount that affects the revenue and cost; 2. The input tax of excess VAT paid was reclassified as “other current assets”, and the balance was increased | |||
Long-term equity investments | 58,220,059.60 | 1.60 | 14,728,003.68 | 0.49 | 295.30 | Mainly due to the new equity investment of RMB 46 million on the associate - Jiaxing Woyong |
Investments in other equity instruments | 20,580,000.00 | 0.57 | Not applicable | Mainly due to the equity investment of RMB 20.58 million on Hangzhou Regenovo Biotechnology., Ltd. | ||
Construction in progress | 47,324,523.36 | 1.30 | 31,894,658.49 | 1.07 | 48.38 | Mainly due to the new investment on make-up line in the current period |
Goodwill | 31,034,161.20 | 0.85 | Not applicable | Main reason: The portion of the investment of the new consolidated subsidiary |
“Shanghai Healthlong” that exceeded the fair value of its net identifiable assets calculated according to the shareholding ratio was recognized as goodwill in the current period | ||||||
Long-term prepaid expenses | 50,576,793.53 | 1.39 | 26,378,564.50 | 0.89 | 91.73 | Main reasons: 1. Increase in the balance of endorsement fee to be amortized; 2. The increase of RMB 13.03 million for renovation of make-up factory |
Deferred income tax assets | 46,660,550.76 | 1.28 | 27,975,258.51 | 0.94 | 66.79 | Mainly due to the increase in the balance of deferred income tax assets calculated based on the amortized share-based payment |
Other non-current assets | 87,322,780.03 | 2.40 | 15,006,146.49 | 0.50 | 481.91 | Main reasons: 1. RMB 81.6 million was paid for the land in Longwu, Hangzhou, but the corresponding land delivery procedure has not been completed as at 31 December 2020; 2. The purchase amount of long-term assets originally prepaid for the new building has been partially transferred into fixed assets. |
Short-term borrowings | 299,280,435.09 | 8.23 | 129,047,396.51 | 4.33 | 131.92 | Mainly due to the new bank loans in the current period |
Bills payable | 64,580,0 | 1.78 | 41,830,9 | 1.40 | 54.38 | Mainly due to the |
00.00 | 48.53 | increase of bank acceptance | ||||
Accounts payable | 515,832,031.27 | 14.18 | 347,316,843.39 | 11.66 | 48.52 | Mainly due to overstock for live streaming in Q4 and the payment day yet to come |
Accounts received in advance | 40,913,490.55 | 1.37 | -100.00 | Mainly due to the adjustment from the original “accounts received in advance” to “contract liabilities” and “other current liabilities” owing to the implementation of new revenue standards | ||
Contract liabilities | 30,618,778.99 | 0.84 | Not applicable | Mainly due to the implementation of new revenue standards: 1. The unredeemed member points originally included in the “deferred income” were adjusted to “contract liabilities”; 2. The original “accounts received in advance” were adjusted to “contract liabilities” and “other current liabilities” | ||
Non-current liabilities due within one year | 85,258,247.69 | 2.86 | -100.00 | Mainly due to the repayment of long-term borrowings due within one year in the current period | ||
Other current liabilities | 1,439,262.02 | 0.04 | Not applicable | Mainly due to the adjustment from the |
original “accounts received in advance” to “contract liabilities” and “other current liabilities” owing to the implementation of new revenue standards | ||||||
Deferred income | 8,495,353.33 | 0.23 | 19,743,036.56 | 0.66 | -56.97 | The unredeemed member points originally included in the “deferred income” was adjusted to “contract liabilities” due to the implementation of new revenue standards, while the balance at the beginning of the period included unredeemed member points of RMB 11.25 million |
Deferred income tax liabilities | 6,874,105.45 | 0.19 | 5,132,011.38 | 0.17 | 33.95 | Mainly due to the increase of taxable temporary differences recognized by one-time deduction of depreciation of fixed assets |
Undistributed profit | 1,265,671,865.63 | 34.80 | 908,411,607.62 | 30.49 | 39.33 | Mainly due to the increase of net profit in the current period |
Minority equity | 90,326,830.19 | 2.48 | 40,370,159.89 | 1.35 | 123.75 | Main reason was due to the consolidation of “Shanghai Healthlong” happened in the current period |
Other particularsNone
2. Major restricted assets as at the end of the Reporting Period
√ Applicable□ Not applicable
Item | Carrying value at the end of the period | Reason for restriction |
Cash and equivalents | 14,803,886.05 | Land construction deposit, transformer deposit, L/C deposit, Tmall deposit, Alipay deposit, etc. |
Total | 14,803,886.05 |
3. Other particulars
□ Applicable√ Not applicable
(IV) Analysis on industry operating information
√ Applicable□ Not applicable
See the content below for details.
Analysis on operating information of the chemical business1 Basic information of the industry
(1). Industry policy and its changes
□ Applicable√ Not applicable
(2). Basic information of main subdivided industries and company position in the industry
√ Applicable□ Not applicable
Refer to the related description in “(I) Industry pattern and trend” in “III.Discussion and analysis on future development of the Company” of “Section IV Discussionand Analysis of Operation”.
Company position in the industry:
Based on the analysis of various industry data, the Company occupies a certain marketshare in the Chinese cosmetics market.
2 Products and production
(1). Main operation model
√ Applicable□ Not applicable
Please refer to the description of the operation model in the “I. Description ofthe Company’s Principle Business, Operation Model and Industry Condition During theReporting Period” of “Section III Business Overview of the Company”.
Main information on adjustment of operation model during the Reporting Period
□ Applicable√ Not applicable
(2). Information on major products
√ Applicable□ Not applicable
Product | Subdivided industry | Main upstream raw materials | Main downstream application fields | Main influencing factors of price |
Skin care (cleansing) | Skin care | Moisturizer, active substance, grease wax, emulsifier, surfactant, essence and packaging | Skin care and cleansing | Personal income, skin type, lifestyle and brand preference |
Make-up | Make-up | Grease wax, emulsifier, toner, essence and packaging | Make-up, beauty and shading | Personal income, lifestyle and brand preference |
(3). R&D innovation
√ Applicable□ Not applicable
The Company's main operations for continuous innovation in scientific research duringthe Reporting Period were as follows:
1. A total of 9 new national invention patents were awarded in 2020, and meanwhile,new applications for 10 invention patents, 3 utility model patents and 27 design patentswere filed. As at the end of the Reporting Period, the Company has 75 national inventionpatents, 30 utility model patent and 80 design patents, totaling 185 patents.
2. Industry-university-research cooperation: Developed cooperation on the“utilization of deep-sea microbial resources and development of active substances” withthe Institute of Microbiology, Chinese Academy of Sciences. Signed the agreement onindustry-university-research cooperation with the International School of Cosmetics,Shanghai Institute of Technology, for the purpose of comprehensive cooperation in termsof talent cultivation, scientific research, scientific and technological innovation, andpersonnel training.
3. Strategic technology cooperation: Achieved strategic technical cooperation withBASF China, etc.; built a joint laboratory center for high-throughput 3D printing of Asianskin models together with Hangzhou Regenovo Biotechnology., Ltd.;
4. The project named
Key Technology and Standardization for Testing of ProhibitedSubstances in Cosmetics, jointly carried out by the Company and Hangzhou Institute forFood and Drug Control, National Center for Quality Supervision and Inspection of DailyCommodities, Hangzhou Institute of Test and Calibration for Quality and TechnicalSupervision, was granted the third prize of Zhejiang Provincial Science and TechnologyProgress Award;
5. Proya won the honorary title of “Excellent R&D Team” in the Science and Technology
Conference of China Fragrance, Flavour and Cosmetics Industry in 2020 and the 13
thAcademicSymposium.
6. Participated in the formulation of group standards of animal substitute test forcosmetics, three of which have been approved and issued by Zhejiang Health Products andCosmetic Industry Association, and implemented from 20 February 2020; participated intwo scientific research projects of the key laboratory for animal substitute test forcosmetics in National Medical Products Administration.
(4). Production process and work flow
√ Applicable□ Not applicable
The Company's products are mainly divided into skin care(cleansing)and make-up. Theproduction process is shown in the figure below:
1. Production process of skin care products
2. Production process of cleansing products
3. Production process of make-up
(1) Make-up pressed powder:
Active ingredient
Basic raw materialHeating and dissolving
Homogeneous CoolingWarehousing Packing Packaging Filling Storage
Semi-finished
productinspectionHeat-preservatiFiltering
Heating and dissolvingFinished product
Basic raw
Active ingredientDissolving Homogeneous Cooling
Warehousing Packing Packaging Filling Storage
Semi-finishedproduct
Finished productinspection
Heat-preservatioFiltering
Finished product
(2) Lipstick and lip gloss:
(3) Eyelashes and eyeliner:
(5). Capacity and commencement
√ Applicable□ Not applicable
Raw materialMixing evenly
Warehousing Packing Packaging
Crushing and sievingActive ingredient
Discharging
Press forming
Finished product
Active ingredientColor correction
Color correctionAppearance inspection
Powder storage
Filling
Semi-finished product
Aluminum plate
Appearance inspectionBasic raw material
Basic raw materialHeating and dissolving
Warehousing
Heating and dissolving | Color correction | |
Packaging
Defoaming
Die forming
FilteringStorage
Finished product Appearance inspection
Heat-preservationPacking
Semi-finishedproduct
Active ingredient
inspe
inspe
Basic raw material
Basic raw materialHeating and dissolving
Warehousing
Heat-preservationPackaging
Cooling
Heating and dissolving
Active ingredient
Filling
DischargingStorage
Finished product
HomogeneousPacking
Semi-finishedproduct
Unit: RMB 0’000 Currency: RMB
Main plant area or project | Designed capacity | Capacity utilization rate (%) | Capacity under construction | Investment amount of capacity under construction | Estimated completion time of capacity under construction |
Huzhou Factory | 200,000,000 pcs. | 84.48 | 0.00 | 0.00 | None |
Increase or decrease in production capacity
□ Applicable√ Not applicable
Adjustment of product line and capacity structure optimization
□ Applicable√ Not applicable
Abnormal shutdown
□ Applicable√ Not applicable
3 Raw material purchase
(1). Basic information of main raw materials
√ Applicable□ Not applicable
Main raw materials | Purchasing mode | Settlement method | Year-on-year price change ratio (%) | Purchase volume | Consumption |
Packaging material | Dominated by competitive procurement, except for some strategic suppliers | In accordance with the contract provisions | 0.91 | About 1.05 billion pcs. | About 1.03 billion pcs. |
Raw material_moisturizer | Dominated by competitive procurement; establish long-term strategic cooperation with supplier with advantages | In accordance with the contract provisions | -16.68 | About 1,640 tons | About 1,600 tons |
Raw material_active substance | Mainly purchase via price comparison; try to empower diversified feature for single-source suppliers | In accordance with the contract provisions | 74.17 | About 487 tons | About 477 tons |
Raw material_grease wax | Mainly competitive procurement; establish long-term strategic cooperation with supplier with advantages | Subject to contract provisions | -48.71 | About 738 tons | About 707 tons |
Raw material_emulsifier | Mainly competitive procurement; cooperate with industry-leading suppliers for some raw materials | Subject to contract provisions | 5.36 | About 135 tons | About 125 tons |
Raw material_sun-screening agent | Mainly competitive procurement; establish long-term strategic cooperation with supplier with advantages | Subject to contract provisions | -1.56 | About 55 tons | About 58 tons |
The impact of price changes of main raw materials on the Company's operating costs:
Compared with the same period in 2019, the price of packaging materials rose slightly,and the operating cost registered a small rise; the overall price of raw materialsdecreased by 7.06% from 2019, which lowered the operating cost.
(2). Basic information of major energy sources
√ Applicable□ Not applicable
Major energy sources | Purchasing mode | Settlement method | Year-on-year price change ratio (%) | Purchase volume | Consumption |
Water | Sign fixed agreement with local water supply company | Pay in advance on a monthly basis or pay on demand as per local requirements | 0.00 | 156,273 tons | 156,273 tons |
Electricity | Sign fixed agreement with local power supply company | Pay in advance on a monthly basis or pay on demand as per local requirements | 6.73 | 8.43 million KWH | 8.43 million KWH |
Gas | Sign fixed agreement with local gas company | Pay in advance on a monthly basis or pay on demand as per local requirements | -15.83 | 306,164 m3 | 306,164 m3 |
The impact of price changes of main energy sources on the Company's operating costs: Theoperating cost increased slightly due to the low proportion of energy amount consumedin the production process of the Company in the production cost; in addition, theelectricity price in 2020 rose by 6.73% year on year, the price of gas decreased by 15.83%,and electricity is the main energy for consumption.
(3). Measures to deal with raw material price fluctuation risks
Main situation of holding financial products such as derivatives
□ Applicable√ Not applicable
(4). Basic situation of adopting other methods such as phased reserve
□ Applicable√ Not applicable
4 Product sales
(1). Basic information of the Company's principal business by subdivided industry
√ Applicable□ Not applicable
Unit: RMB 0’000 Currency: RMB
Subdivided industry | Revenue | Cost of sales | Gross margin (%) | Change in revenue from last year (%) | Change in cost from last year (%) | Change in gross profit margin | Gross margin of products in the same industry |
from last year (%) | and field | ||||||
Skin care (including cleansing) | 324,209.35 | 113,986.55 | 64.84 | 11.38 | 11.02 | Increase by 0.11% | No public information available |
Make-up | 46,496.73 | 19,757.89 | 57.51 | 181.91 | 213.38 | Decrease by 4.27% | No public information available |
Other categories | 4,086.37 | 2,604.24 | 36.27 | 0.47 | -14.60 | Increase by 11.25% | No public information available |
(2). Basic information of the Company's principal business by sales channel
√ Applicable□ Not applicable
Unit: RMB 0’000 Currency: RMB
Sales channel | Revenue | Change in revenue from last year (%) |
Online | 262,402.07 | 58.59 |
Offline | 112,390.39 | -23.12 |
The sales model integrates offline and online channels.Online channels mainly include direct sales and distribution. Such channels mainlyinclude Tmall, Taobao, JD.COM, Vipshop, and Pinduoduo.
Off-line channels are mainly operated by dealers. Such channels mainly include mallsand supermarkets, cosmetics specialty stores, and single brand stores.
Statement of accounting policy
□ Applicable√ Not applicable
5 Environmental protection and safety
(1). Basic information of major work safety accidents of the Company during the Reporting Period
□ Applicable√ Not applicable
(2). Major environmental violations
□ Applicable√ Not applicable
(V) Analysis of investment
1、 Overall analysis of external equity investment
√ Applicable□ Not applicable
Unit: Yuan
Item | Closing balance | Opening balance | ||||
Carrying balance | Impairment provisions | Carrying value | Carrying balance | Impairment provisions | Carrying value | |
Investment on joint ventures | 3,306,630.57 | 3,306,630.57 | 3,314,489.57 | 3,314,489.57 | ||
Investment on associates | 54,913,429.03 | 54,913,429.03 | 15,490,224.94 | 4,076,710.83 | 11,413,514.11 | |
Total | 58,220,059.60 | 58,220,059.60 | 18,804,714.51 | 4,076,710.83 | 14,728,003.68 |
Refer to “VII. 17. Long-term equity investment” in “Section XI Financial Report”herein for details.
(1) Significant equity investment
□ Applicable√ Not applicable
(2) Significant non-equity investment
□ Applicable√ Not applicable
(3) Financial assets measured at fair value
□ Applicable√ Not applicable
(VI) Sale of major assets and equities
□ Applicable√ Not applicable
(VII) Analysis of major controlled companies and shareholding companies
√ Applicable□ Not applicable
Unit: RMB 00’000
Major subsidiaries | Nature of the business | Major products and services | Registered capital | Total asset | Net assets | Net profit | Controlled or shareholding company |
Hangzhou Proya Trade Co., Ltd. | Cosmetics sales | Cosmetics | 5,000.00 | 48,620.46 | 13,043.03 | 2,015.43 | Controlled |
Hapsode (Hangzhou) Cosmetics Co., Ltd. | Cosmetics sales | Cosmetics | 5,000.00 | 10,913.11 | -19,848.86 | -3,317.48 | Controlled |
Note: The loss of Hapsode (Hangzhou) Cosmetics Co., Ltd. amounted to RMB 33,174,800, inwhich the loss of Hapsode brand amounted to RMB 15,546,000.
(VIII) Structured entities controlled by the Company
□ Applicable√ Not applicable
III Discussion and analysis on future development of the Company(I) Industry pattern and trend
√ Applicable□ Not applicable
According to the statistics of the National Bureau of Statistics, the total retailsales of social consumer goods was RMB 39,198.1 billion in 2020, with a year-on-yeardecrease of 3.9%, of which the total amount of cosmetics was RMB 340 billion, up 9.5%year on year (retail sales of unit consumer goods above quota).
(II) Development strategy of the Company
√ Applicable□ Not applicable
Adhering to the corporate values of "diligence and pragmatism, passion and initiative,honesty and gratitude", the Company is committed to becoming a world-class beauty makeupenterprise, and building a new Chinese cosmetics industry platform. Focus on the "6 *N" strategy in the future:
"6" refers to new consumption, new marketing, new organization, new mechanism, newtechnology and new intelligent creation, and "N" refers to creating N brands
(1) New consumption: It refers to meeting the needs of more consumers and providingconsumers with innovation services with high value;
(2) New marketing: It refers to marketing digitalization, omni-channel refinedoperation as well as accurate and advanced insight into consumers;
(3) New organization: It refers to an efficient organization with flat,platform-based and self-driven coordination;
(4) New mechanism: It refers to the establishment of a flexible, diversified andbusiness-oriented incentive mechanism;
(5) New technology: It refers to paying attention to basic scientific research inthe field of research and development, in order to create R&D technology competitivenessthat is difficult to replicate; and focusing on the Company's transformation ofinformatization and digitization, to build an intelligent operation management system;
(6) New intelligent creation: It refers to building an agile and flexible supply chain
to adapt to the current fast-paced production and sales;
——The core connotation of "6 * N" refers to the creation, empowerment and incubationof "different" brands that meet the "different" needs of "different" consumers based onthe above six capabilities.
(III) Business plan
√ Applicable□ Not applicable
In 2021, we will focus on the following aspects:
1. Strengthen brand building: gradually implement the blueprint of the self-ownedbrand matrix, plan new brands and reshape old brands.
(1) Main brand: Complete the Proya brand upgrade plan and shape it into a new high-tech,
youth-centric and proactive brand. Attract more first-and second-tier young consumers,and gradually upgrade the consumer level. In addition, maintain the steady growth of themain brand.
(2) Potential brands: Complete the leap from incubation period to high-speed growthperiod of TIMAGE, and complete the brand reshaping of Hapsode.
(3) Other brands: Incubate more new brands.
2. Product upgrading strategy: Establish product planning and marketing capabilitiesahead of the market to improve product success rate.
(1) Proya: Plan, create and reserve a variety of popular single products and newproducts. Try to launch products priced above RMB 300, and increase the unit pricegradually.
(2) TIMAGE, Hapsode, CORRECTORS: Plan and create a variety of popular single productsand hot products.
3. Refined operation channels:
(1) Online channels: Maintain the rapid growth of online channels as a whole, focuson refined operation of direct channels, and keep emerging channels such as TikTok storesgrowing rapidly.
(2) Offline channels: Maintain the steady and healthy development of CS channels,and continue expanding mall and supermarket channels.
(IV) Potential risks
√ Applicable□ Not applicable
1. Industry competition risk
(1) Competition among brands in the industry becomes increasingly fierce. TheCompany's brand upgrading strategy and popular single product strategy may fail to meetexpectations;
(2) Competition in marketing becomes increasingly fierce. The digital and refinedcost control may fail to meet expectations.
2. Project incubation risk
(1) New brand incubation risk: The marketing investment is large and the performancefails to meet expectations;
(2) New category cultivation risk: The operation modes of different categories arequite different; the team fails to meet the requirements and the performance fails tomeet the expectations.
3. Uncertain impact of COVID-19 on business operation
(V) Others
□ Applicable√ Not applicable
IV Explanation on the failure to disclose as per rules due to inapplicability or specialreasons such as state secrets and business secrets
□ Applicable√ Not applicable
Section V Major Events
I Proposal for profit distribution of ordinary shares or capitalization of capital reserve(I) Formulation, implementation or adjustment of the cash dividend policy
√ Applicable□ Not applicable
Pursuant to the relevant requirements ofRegulatory Guidance No.3 of Listed Companies— Cash Dividend Distribution of Listed Companiesissued by the China SecuritiesRegulatory Commission andGuidelines of Shanghai Stock Exchange Guidelines for CashDividends of Listed Companies, combined with the actual situation of the Company, theCompany held the eighth meeting of the first session of the Board of Directors and thesecond extraordinary general shareholders’ meeting in 2016 on 12 April 2016 and 5 May2016 respectively, and deliberated and approved theProposal on Formulating theShareholder Dividend Distribution Plan in Three Years after the Listing of the Company
and theProposal on Formulating the Applicable <Articles of Association (Draft)> afterthe Listing of the Companyas below:
I. Considerations for Formulating Shareholder Dividend Distribution PlanWith a view to long-term and sustainable development, on the basis of comprehensiveanalysis of enterprise development strategy, shareholders' requirements and wishes,social capital cost, external financing environment and other factors, the Companysolicits and listens to the requirements and wishes of shareholders, especially smalland medium shareholders, fully considers the Company's current and future profit scale,cash flow status, development stage, project investment fund demand, bank credit, etc.,balances the short-term and long-term interests of shareholders, and makes institutionalarrangements for profit distribution, so as to establish a sustained, stable andscientific dividend return mechanism for investors to ensure the continuity and stabilityof the Company's profit distribution policy.II. Principles for Formulating Shareholder Dividend Distribution PlanImplement a sustained and stable profit distribution policy, attach importance tothe reasonable return on investment to investors and take into account the sustainabledevelopment of the Company, and establish a sustained and stable return mechanism forinvestors in combination with the Company's profitability and the actual needs of thedevelopment strategy for the future business. The Company shall formulate the profitdistribution plan in accordance with theArticles of Association. The opinions ofindependent directors, supervisors and public investors shall be fully considered in thedecision-making and demonstration of profit distribution policies by the Board ofDirectors, Board of Supervisors and general shareholders’ meeting of the Company.III. Shareholder Dividend Distribution Plan
1. The Company shall implement a sustained and stable profit distribution policy.The Company's profit distribution shall pay attention to the reasonable return on
investment to investors and take into account the actual operation and sustainabledevelopment of the Company in the current year.
2. The Company can distribute profits in cash or stock, or a combination of cash andstock or other methods permitted by laws and regulations. The profit distribution shallnot exceed the range of accumulated distributable profits or affect the Company’s abilityto continue as a going concern. Under the condition of meeting cash dividends, the Companyshall give priority to profit distribution by means of cash dividends.Under the condition of meeting the cash dividend conditions stipulated in the Articlesof Association of the Company, the Company shall distribute profits in cash. In principle,cash dividends shall be paid once a year. The Board of Directors of the Company can proposethe Company to pay medium-term cash dividends according to the Company's profit andcapital demand.The Company shall maintain the continuity and stability of the profit distribution policy.The annual profit distributed in cash shall not be less than 20% of the distributableprofit realized in the current year. The Board of Directors of the Company shallcomprehensively consider factors such as the characteristics of the industry, the stageof development, its operation model, profitability and significant capital expenditurearrangement, and put forward differentiated cash dividend policies pursuant to theprocedures set out in the Articles of Association of the Company.
3. Adjustment of profit distribution plan and relevant decision-making mechanism
(1) The Company shall evaluate the implementation of the implemented shareholderdividend distribution plan at least once every three years.According to relevant laws and regulations as well as the Company's operating conditions,the opinions of shareholders (especially small and medium-sized investors) andindependent directors, the Company's profit distribution policy in implementation shallbe revised accordingly when necessary, and a new shareholder dividend distribution planshall be formulated. After the adjustment of the shareholder dividend distribution plan,it must be deliberated and approved at the general shareholders’ meeting by voting.
(2) The Board of Directors of the Company shall scientifically formulate the annualdistribution plan or the medium-term profit distribution plan according to the needs ofoperation and development by fully considering the Company's profit, cash flow status,development fund demand, financing cost, external financing environment and other factors,and implement it upon the approval at the general shareholders’ meeting of the Companyby voting.
At the 8
th
meeting of the first session of the Board of Directors and the 2
nd
extraordinary general shareholders’ meeting in 2016, the Company deliberated andapproved theProposal on Distribution of Accumulated Profits before the Public Offeringof Shares and Listing of the Company: if the Company's initial public offering of sharesis successfully completed, the undistributed profits accumulated before this publicoffering shall be shared by the new and old shareholders after the initial public offeringaccording to their shareholding ratio.
On 12 October 2020 and 28 October 2020 respectively, the Company held the 16
thmeetingof the second session of the Board of Directors and the 3
rdextraordinary general
shareholders’ meeting in 2020, and deliberated and approved theProposal on ShareholderDividend Distribution Plan for the Next Three Years (2020-2022)as below:
I. Considerations for Formulating Shareholder Dividend Distribution PlanWith a view to long-term and sustainable development, on the basis of comprehensiveanalysis of enterprise development strategy, shareholders' requirements and wishes,social capital cost, external financing environment and other factors, the Companysolicits and listens to the requirements and wishes of shareholders, especially smalland medium shareholders, fully considers the Company's current and future profit scale,cash flow status, development stage, project investment fund demand, bank credit, etc.,balances the short-term and long-term interests of shareholders, and makes institutionalarrangements for profit distribution, so as to establish a sustained, stable andscientific dividend return mechanism for investors to ensure the continuity and stabilityof the Company's profit distribution policy.
II.Principles for Formulating Shareholder Dividend Distribution PlanImplement a sustained and stable profit distribution policy, attach importance tothe reasonable return on investment to investors and take into account the sustainabledevelopment of the Company, and establish a sustained and stable return mechanism forinvestors in combination with the Company's profitability and the actual needs of thedevelopment strategy for the future business. The Company shall formulate the profitdistribution plan in accordance with theArticles of Association. The opinions ofindependent directors, supervisors and public investors shall be fully considered in thedecision-making and demonstration of profit distribution policies by the Board ofDirectors, Board of Supervisors and general shareholders’ meeting of the Company.III. Shareholder Dividend Distribution Plan (2020-2022)
1. The Company shall implement a sustained and stable profit distribution policy.The Company's profit distribution shall pay attention to the reasonable return oninvestment to investors and take into account the actual operation and sustainabledevelopment of the Company in the current year.
2. The Company can distribute profits in cash or stock, or a combination of cash andstock or other methods permitted by laws and regulations. The profit distribution shallnot exceed the range of accumulated distributable profits or affect the Company’s abilityto continue as a going concern. Under the condition of meeting cash dividends, the Companyshall give priority to profit distribution by means of cash dividends.
Under the condition of meeting the cash dividend conditions stipulated in the Articlesof Association of the Company, the Company shall distribute profits in cash. In principle,cash dividends shall be paid once a year. The Board of Directors of the Company can proposethe Company to pay medium-term cash dividends according to the Company's profit andcapital demand. The Company shall maintain the continuity and stability of the profitdistribution policy, and the annual profit distributed in cash shall not be less than20% of the distributable profit realized in the current year. The Board of Directors ofthe Company shall comprehensively consider factors such as the characteristics of theindustry, the stage of development, its operation model, profitability and significantcapital expenditure arrangement, and put forward differentiated cash dividend policiespursuant to the procedures set out in the Articles of Association of the Company.
3. Adjustment of profit distribution plan and relevant decision-making mechanism
(1) The Company shall evaluate the implementation of the implemented shareholderdividend distribution plan at least once every three years. According to relevant lawsand regulations as well as the Company's operating conditions, the opinions ofshareholders (especially small and medium-sized investors) and independent directors,the Company's profit distribution policy in implementation shall be revised accordinglywhen necessary, and a new shareholder dividend distribution plan shall be formulated.After the adjustment of the shareholder dividend distribution plan, it must be deliberatedand approved at the general shareholders’ meeting by voting.
(2) The Board of Directors of the Company shall scientifically formulate the annualdistribution plan or the medium-term profit distribution plan according to the needs ofoperation and development by fully considering the Company's profit, cash flow status,development fund demand, financing cost, external financing environment and other factors,and implement it upon the approval at the general shareholders’ meeting of the Companyby voting.
During the Reporting Period, the 2019 annual general meeting of the Companydeliberated and approved the 2019 annual profit distribution plan: the Company shalldistribute cash dividend of RMB 5.90 (tax inclusive) per 10 shares to all shareholdersregistered on the equity registration date based on the total share capital registeredas at the registration date of dividend-paying equity, with the distributed cash dividendtotaling RMB 118,749,040.40 (tax inclusive). The above dividend distribution plan wasimplemented on 13 May 2020.
(II) Ordinary shares dividend distribution scheme or plan, and capitalization scheme or plan
from capital reserve to share capital of the Company in recent three years (including the
Reporting Period)
Unit: Yuan Currency: RMB
Year for dividend distribution | Number of bonus shares per 10 shares (shares) | Amount of dividends distributed per 10 shares (Yuan) (inclusive of tax) | Number of shares transferred per 10 shares (shares) | Amount of cash dividends (inclusive of tax) |
2020 | 0 | 7.20 | 0 | 144,804,186.00 | 476,009,298.41 | 30.42 |
2019 | 0 | 5.90 | 0 | 118,749,040.40 | 392,681,976.58 | 30.24 |
2018 | 0 | 4.30 | 0 | 86,552,894.00 | 287,188,727.12 | 30.14 |
(III) The inclusion of shares repurchased through cash offer in cash dividend
□ Applicable√ Not applicable
(IV) If the Company recorded positive profit distributable to ordinary shareholders of the parentcompany during the Reporting Period, but there was no proposal for cash dividend, theCompany shall disclose the reasons, the usage and the utilization plan of the undistributedprofits in detail
□ Applicable√ Not applicable
II Performance of undertakings(I) Undertakings by the Company’s beneficial controllers, shareholders, related parties, acquirers, the Company and other related parties during or
subsisted in the Reporting Period
√ Applicable□ Not applicable
Background of undertakings | Type of undertakings | Undertaking party | Content of undertakings | Time and term of the undertaking | Whether there is deadline for performance | Whether strictly performed in a timely manner | If not performed in time, describe the specific reasons | If not performed in time, describe plans in next steps |
Undertakings related to initial public offering | Restriction on sale of shares | Controlling shareholders and beneficial controllers: Hou Juncheng and Fang Aiqin | (1) Within 36 months from the date of listing of the Company's shares, I will not transfer or entrust others to manage the Company's shares directly or indirectly held by me, nor will the Company repurchase the shares; (2) If the closing price of the Company's shares has been lower than the issue price for 20 consecutive trading days within 6 months after the listing of the Company, | Time of the undertaking: 15 November 2017, period of validity: 15 November 2017 to 14 November 2020 | Yes | Yes | Not applicable | Not applicable |
or the closing price is lower than the issue price as at the end of the six-month period upon the listing, the lockup period of the Company's shares held by me will be automatically extended for 6 months; (3) If I sell the Company's shares held by within two years after the expiration of the lockup period, the selling price shall not be lower than the issue price. (4) If I/the partnership violates the above-mentioned share locking commitment, the lockup period of the Company's shares held by me/the partnership will be automatically extended for 6 months. | |||||||
Restriction on sale of shares | Fang Yuyou, Director & General Manager | (1) Within 36 months from the date of listing of the Company's shares, I will not transfer or entrust others to manage the Company's | Time of the undertaking: 15 November 2017, period of validity: | Yes | Yes | Not applicable | Not applicable |
shares directly or indirectly held by me, nor will the Company repurchase the shares; (2) If the closing price of the Company's shares has been lower than the issue price for 20 consecutive trading days within 6 months after the listing of the Company, or the closing price is lower than the issue price as at the end of the six-month period upon the listing, the lockup period of the Company's shares held by me will be automatically extended for 6 months; (3) If I sell the Company's shares held by within two years after the expiration of the lockup period, the selling price shall not be lower than the issue price. (4) If I/the partnership violates the above-mentioned share locking commitment, the | 15 November 2017 to 14 November 2020 |
lockup period of the Company's shares held by me/the partnership will be automatically extended for 6 months. | |||||||
Restriction on sale of shares | 12 natural person shareholders, i.e., Li Xiaolin, Xu Junqing, Fang Aifen, Ye Caifu, Li Jianqing, Chen Dongfang, Li Wenqing, Xu Dongkui, Bao Qingfang, Fang Jiaqin, Fang Shanming and Ye Hong | (1) Within 36 months from the date of listing of the Company's shares, I will not transfer or entrust others to manage the Company's shares directly or indirectly held by me, nor will the Company repurchase the shares; (2) If the closing price of the Company's shares has been lower than the issue price for 20 consecutive trading days within 6 months after the listing of the Company, or the closing price is lower than the issue price as at the end of the six-month period upon the listing, the lockup period of the Company's shares held by me will be automatically | Time of the undertaking: 15 November 2017, period of validity: 15 November 2017 to 14 November 2020 | Yes | Yes | Not applicable | Not applicable |
extended for 6 months; (3) If I sell the Company's shares held by within two years after the expiration of the lockup period, the selling price shall not be lower than the issue price. (4) If I/the partnership violates the above-mentioned share locking commitment, the lockup period of the Company's shares held by me/the partnership will be automatically extended for 6 months. | |||||||
Restriction on sale of shares | Directors and senior management: Hou Juncheng, Fang Yuyou and Cao Liangguo | (1) During my tenure as director/senior management of the Company, the shares transferred each year shall not exceed 25% of the total number of the Company's shares directly or indirectly held by me; within half a year after my demission, I will not transfer the Company's shares directly or | Time of the undertaking: 15 November 2017, period of validity: 15 November 2017 to long term | No | Yes | Not applicable | Not applicable |
lockup period of the Company's shares held by me/the partnership will be automatically extended for 6 months. | |||||||
Restriction on sale of shares | Senior management: Zhang Yefeng and Zhang Minhua | (1) Within 12 months from the date of listing of the Company's shares, I will not transfer or entrust others to manage the Company's shares directly or indirectly held by me, nor will the Company buy back the shares; (2) During my tenure as senior management of the Company, the shares transferred each year shall not exceed 25% of the total number of the Company's shares directly or indirectly held by me; within half a year after my demission, I will not transfer the Company's shares directly or indirectly held by me; (3) If I sell the Company's shares | Time of the undertaking: 15 November 2017, period of validity: 15 November 2017 to long term | No | Yes | Not applicable | Not applicable |
me/the partnership will be automatically extended for 6 months. | |||||||
Restriction on sale of shares | Senior management: Jin Yanhua | (1) Within 12 months from the date of listing of the Company's shares, I will not transfer or entrust others to manage the Company's shares directly or indirectly held by me, nor will the Company buy back the shares; (2) During my tenure as senior management of the Company, the shares transferred each year shall not exceed 25% of the total number of the Company's shares directly or indirectly held by me; within half a year after my demission, I will not transfer the Company's shares directly or indirectly held by me; (3) If I sell the Company's shares held by me within two years after the expiration of the | Time of the undertaking: 16 April 2018, period of validity: 16 April 2018 to long term | No | Yes | Not applicable | Not applicable |
months. | |||||||
Restriction on sale of shares | Senior management: Wang Li | (1) Within 12 months from the date of listing of the Company's shares, I will not transfer or entrust others to manage the Company's shares directly or indirectly held by me, nor will the Company buy back the shares; (2) During my tenure as senior management of the Company, the shares transferred each year shall not exceed 25% of the total number of the Company's shares directly or indirectly held by me; within half a year after my demission, I will not transfer the Company's shares directly or indirectly held by me; (3) If I sell the Company's shares held by me within two years after the expiration of the lockup period, the selling price shall not be lower than | Time of the undertaking: 3 September 2018, period of validity: 3 September 2018 to long term | No | Yes | Not applicable | Not applicable |
the issue price; if the closing price of the Company's shares has been lower than the issue price for 20 consecutive trading days within 6 months after the listing of the Company, or the closing price is lower than the issue price as at the end of the six-month period upon the listing, the lockup period of the Company's shares held by me will be automatically extended for 6 months; and it will not be terminated due to my job change, demission and other reasons. (4) If I/the partnership violates the above-mentioned share locking commitment, the lockup period of the Company's shares held by me/the partnership will be automatically extended for 6 months. | |||||||
Restriction | Controlling | (1) If I intend to reduce my | Time of the | No | Yes | Not | Not |
on sale of shares | shareholders and beneficial controllers: Hou Juncheng and Fang Aiqin | shares within 24 months after the expiration of the lockup period, the number of issuer shares directly or indirectly reduced shall not exceed 6% of the total number of issuer shares before this issuance; (2) The reduction of the Company's shares shall comply with the provisions of relevant laws, regulations and rules; the specific methods include but are not limited to centralized bidding in the exchange, block trading, and agreement transfer; (3) Before selling the Company's shares, I shall make a public announcement three trading days in advance and perform the obligation of information disclosure in a timely and accurate manner in accordance with the rules of the stock exchange, except for the case when I | undertaking: 15 November 2017, period of validity: 15 November 2017 to long term | applicable | applicable |
hold less than 5% of the Company's shares; (4) If I fail to fulfill the above reduction intention, I will publicly explain the specific reasons for the failure in the general shareholders’ meeting of the Company and the disclosure media designated by China Securities Regulatory Commission and apologize to the shareholders of the Company and public investors. | |||||||
Restriction on sale of shares | Shareholders directly holding more than 5% shares: Fang Yuyou, Li Xiaolin | (1) If I intend to reduce my shares after the expiration of the lockup period, I will earnestly abide by the relevant regulations of the China Securities Regulatory Commission and the Exchange on the reduction of shares of shareholders, prudently formulate a share reduction plan in combination with the Company's needs of | Time of the undertaking: 15 November 2017, period of validity: 15 November 2017 to long term | No | Yes | Not applicable | Not applicable |
shares; (4) If I fail to fulfill the above reduction intention, I will publicly explain the specific reasons for the failure in the general shareholders’ meeting and the disclosure media designated by China Securities Regulatory Commission and apologize to the shareholders of the Company and public investors. | |||||||
Others | Company | Before satisfying the prerequisites for initiating stock price stabilization plan, if the Company fails to take measures for stock price stabilization, the Company will publicly explain the specific reasons for the failure to take measures for stock price stabilization in the general shareholders’ meeting and the disclosure media designated by China | Time of the undertaking: 15 November 2017, period of validity: 15 November 2017 to long term | No | Yes | Not applicable | Not applicable |
shares, if the Company employs new directors and senior management, the Company will require such new directors and senior management to fulfill the corresponding undertakings made by the directors and senior management at the time of listing of the Company. | |||||||
Others | Controlling shareholders and beneficial controllers | Before satisfying the prerequisites for initiating stock price stabilization plan, if I fail to take measures to stabilize the stock price according to the stock price stabilization plan, I will publicly explain the specific reasons for the failure to take the above measures for stock price stabilization in the general shareholders’ meeting of the issuer and the disclosure media designated | Time of the undertaking: 15 November 2017, period of validity: 15 November 2017 to long term | No | Yes | Not applicable | Not applicable |
by China Securities Regulatory Commission and apologize to the shareholders of the issuer and public investors; if I fail to fulfill the above commitment, I will stop receiving shareholder dividends from the issuer within 5 working days from the date of occurrence of the aforesaid event, and meanwhile the issuer share held by me shall not be transferred until I take corresponding stock price stabilization plan according to the above plan and complete such measures. | |||||||
Others | Director (excluding independent director) and senior management | Before satisfying the prerequisites for initiating stock price stabilization measures, if I fail to take measures to stabilize the stock price according to the stock price stabilization plan, I will | Time of the undertaking: 15 November 2017, period of validity: 15 November 2017 to long term | No | Yes | Not applicable | Not applicable |
and complete such measures. | |||||||
Others | Company | If false records, misleading statements or major omissions in the prospectus of the Company cause losses to investors in securities trading, the investors will be compensated for their losses pursuant to law. After the identification of such violations by China Securities Regulatory Commission, the stock exchange where the Company is located or the judicial organs, we will reach an amicable settlement with the investors, and compensate the investors for the direct economic losses arising therefrom through amicable settlement between the third party and the investors and investor compensation fund according to the measurable economic losses directly suffered by investors, in | Time of the undertaking: 15 November 2017, period of validity: 15 November 2017 to long term | No | Yes | Not applicable | Not applicable |
the principle of simplified procedure, active negotiation, compensation in advance and guarantee of the interests of investors, especially small and medium investors. If the Company violates the above commitment, the Company will disclose this in the general shareholders’ meeting and the disclosure media designated by China Securities Regulatory Commission and apologize to the shareholders and public investors for the failure to fulfill the above compensation measures, and compensate the investors according to the actual loss determined by China Securities Regulatory Commission and relevant judicial organs. | |||||||
Others | Controlling shareholders | If false records, misleading statements or major | Time of the undertaking: | No | Yes | Not applicable | Not applicable |
and beneficial controllers of issuer | omissions in the prospectus of the issuer cause losses to investors in securities trading, I will compensate the investors for their losses pursuant to law. After the identification of such violations by China Securities Regulatory Commission, the stock exchange where the Company is located or the judicial organs, we will reach an amicable settlement with the investors, and compensate the investors for the direct economic losses arising therefrom through amicable settlement between the third party and the investors and investor compensation fund according to the measurable economic losses directly suffered by investors, in the principle of simplified procedure, active negotiation, compensation | 15 November 2017, period of validity: 15 November 2017 to long term |
the date of breach of the above commitments, and meanwhile the issuer shares held by them shall not be transferred until they take corresponding compensation measures according to the above commitments and complete such measures. | |||||||
Director, supervisor and senior management | If false records, misleading statements or major omissions in the prospectus of the issuer cause losses to investors in securities trading, I will compensate the investors for their losses pursuant to law. After the identification of such violations by China Securities Regulatory Commission, the stock exchange where the Company is located or the judicial organs, we will reach an amicable settlement with the investors, and compensate the investors for the direct | Time of the undertaking: 15 November 2017, period of validity: 15 November 2017 to long term | No | Yes | Not applicable | Not applicable |
apologize to the shareholders of the issuer and public investors for the failure to fulfill the above compensation measures; besides, the director, supervisor and senior management will stop receiving remuneration (or allowance) and shareholder dividends (if any) from the issuer within 5 working days from the date of breach of the above commitments, and meanwhile the issuer shares held by them (if any) shall not be transferred until they take corresponding compensation measures according to the above commitments and complete such measures. | |||||||
Others | Company | To ensure effective utilization of funds raised this time, effective prevention against the risk that immediate return will | Time of the undertaking: 15 November 2017, period of validity: | No | Yes | Not applicable | Not applicable |
be diluted and improvement of future ability to generate returns, the Company is proposed to improve the quality of assets, enhance operating revenue, increase future income and realize sustainable development by strengthening operation management and internal control, speeding up the construction progress of investment projects and strengthening the return mechanism of investors, so as to fill the diluted immediate return. The Company undertakes to continue improving the measures for filling the diluted immediate return in accordance with follow-up implementation rules issued by China Securities Regulatory Commission and Shanghai Stock Exchange. If | 15 November 2017 to long term |
the Company violates the aforesaid commitments, the Company will announce the facts and reasons of violation in a timely manner. Except for force majeure or other reasons not attributable to the Company, it will apologize to the shareholders and public investors of the Company, and make supplementary commitment or alternative commitment to the investors for the purpose of protecting the interests of investors as much as possible, and implement the supplementary commitment or alternative commitment upon the deliberation and approval by the general shareholders’ meeting of the Company. | |||||||
Others | Controlling shareholders and | I, as the controlling shareholder and beneficial controller of the Company, | Time of the undertaking: 15 November | No | Yes | Not applicable | Not applicable |
beneficial controllers: Hou Juncheng and Fang Aiqin | make the following undertakings to ensure the practical implementation of diluted immediate return filling measures of the Company: (1) In any case, I undertake neither to act beyond the authority of controlling shareholder and beneficial controller to intervene in operating management activities of the Company, nor to misappropriate interests of the Company; (2) After China Securities Regulatory Commission and Shanghai Stock Exchange issues relevant opinions and implementation rules on diluted immediate return filling measures and commitment separately, if the relevant provisions of the Company and my commitment are inconsistent with such provisions, I | 2017, period of validity: 15 November 2017 to long term |
explain the specific reasons in the general shareholders’ meeting and the disclosure media designated by China Securities Regulatory Commission and make an apology; ② assume the liability of indemnity to the Company and/or shareholders pursuant to law; ③ unconditionally accept the punishment or relevant regulatory measures made by China Securities Regulatory Commission and/or Shanghai Stock Exchange and other securities regulatory institutions in accordance with their relevant regulations and rules. The diluted immediate return filling measures above do not guarantee the future profit of the Company. | |||||||
Others | Director and | I, as the director and senior | Time of the | No | Yes | Not | Not |
senior management | management of the Company, make the following undertakings to ensure the practical implementation of diluted immediate return filling measures of the Company: (1) I undertake neither to transfer benefits to other units or individuals without compensation or under unfair conditions, nor to damage the Company’s interests in other ways; (2) I undertake to strictly abide by the budget management of the Company, restrict my position-related consumption activities within the scope necessary for fulfilling my duty, and strictly accept the supervision and management from the Company to avoid waste or excessive consumption; (3) I undertake not to use the Company’s | undertaking: 15 November 2017, period of validity: 15 November 2017 to long term | applicable | applicable |
Commission and/or Shanghai Stock Exchange and other securities regulatory institutions in accordance with their relevant regulations and rules. The diluted immediate return filling measures above do not guarantee the future profit of the issuer. | |||||||
Address competition between counterparts | Controlling shareholders and beneficial controllers: Hou Juncheng and Fang Aiqin | 1. I do not and will not directly or indirectly engage in any activities compete with the existing and future business of Proya Co., Ltd. and its holding subsidiaries, including but not limited to the R&D, production and sale of any products that are the same or similar to those of Proya Co., Ltd. and its holding subsidiaries, and I am willing to compensate Proya Co., Ltd. for the economic loss caused due to violation of the above commitment; 2. | Time of the undertaking: 15 November 2017, period of validity: 15 November 2017 to long term | No | Yes | Not applicable | Not applicable |
downstream cosmetics business in the future, I undertake to withdraw the investment in these enterprises by means of equity transfer, and give priority to Proya Cosmetics Co., Ltd. for choosing whether to invest in the event of compliance with the law and with the consent of other shareholders of these enterprises. | ||||||||
Undertakings related to refinancing | Others | Controlling shareholders and beneficial controllers: Hou Juncheng and Fang Aiqin | The following undertakings are made in respect to practical implementation of immediate return filling measures of the Company: 1. I undertake neither to act beyond the authority to intervene in operating management activities of the Company, nor to misappropriate interests of the Company; 2. From the issuance date of this commitment to the | Time of the undertaking: 12 October 2020, period of validity: 12 October 2020 to long term | No | Yes | Not applicable | Not applicable |
with losses to the Company or investors, I hereby agree to assume liability of indemnity to the Company or investors. If I, as one of the responsible subjects of return filling measures, violate the above commitment or refuse to fulfill the above commitment, I will accept punishment or relevant regulatory measures in accordance with the relevant regulations and rules of China Securities Regulatory Commission and Shanghai Stock Exchange and other securities regulatory institutions. | |||||||
Others | Director and senior management | The following undertakings are made in respect to practical implementation of immediate return filling measures of the Company: 1. I undertake neither to transfer benefits to other | Time of the undertaking: 12 October 2020, period of validity: 12 October 2020 to long | No | Yes | Not applicable | Not applicable |
units or individuals without compensation or under unfair conditions, nor to damage the Company’s interests in other ways; 2. I undertake to restrict my position-related consumption activities; 3. I undertake not to use the Company’s assets for investment and consumption activities not related to execution of my duties; 4. I undertake that the remuneration system developed by the Board of Directors or the Remuneration and Appraisal Committee are linked with execution of the Company’s return filling measures; 5. If equity incentive is carried out in the Company in the future, I undertake that the vesting conditions for the Company’s equity incentive to be released are | term |
(II) Where the Company has profit forecasts on assets or projects, and the Reporting Period was
within the term of profit forecasts, the Company has to state whether such profit forecasts onassets or projects are fulfilled and the reasons therefor
□ Fulfilled□ Unfulfilled√ Not applicable
(III) Execution of the performance undertakings and impact on the goodwill impairment
testing
□ Applicable√ Not applicable
III Occupation of funds and repayment of debts during the Reporting Period
□ Applicable√ Not applicable
IV Explanation of the Company on the “non-standard opinions audit report” from
accounting firm
□ Applicable√ Not applicable
V Analysis and explanation from the Company on the reasons and impact of thechange of accounting policies, accounting estimates or correction on significantaccounting errors(I) Analysis and explanation from the Company on the reasons and impact of the change of
accounting policies or accounting estimates
√ Applicable□ Not applicable
Refer to “44. Changes in significant accounting policies and accounting estimates” in“V. Significant accounting policies and accounting estimates” of “Section XI FinancialReport” herein.
(II) Analysis and explanation from the Company on the reasons and impact of the correction on
significant accounting errors
□ Applicable√ Not applicable
(III) Communication with the previous accounting firm
□ Applicable√ Not applicable
(IV) Other particulars
□ Applicable√ Not applicable
VI Appointment and dismissal of the accounting firm
Unit: Yuan Currency: RMB
Current accounting firm |
Name of domestic accounting firm | Pan-China Certified Public Accountants LLP |
Remuneration of domestic accounting firm | 1,200,000 |
Term of office of domestic accounting firm | 10 years |
Name | Remuneration | |
Internal control audit accounting firm | Pan-China Certified Public Accountants LLP | 200,000 |
Explanation on appointment and dismissal of the accounting firm
□ Applicable√ Not applicable
Explanation on the change of accounting firm during the auditing period
□ Applicable√ Not applicable
VII Risk of suspension of listing(I) Causes of suspension of listing
□ Applicable√ Not applicable
(II) Measures to be taken by the Company
□ Applicable√ Not applicable
VIII Situation and causes for termination of listing
□ Applicable√ Not applicable
IX Matters related to bankruptcy and reorganization
□ Applicable√ Not applicable
X Material litigation and arbitration
□ The Company had material litigation and arbitration during the year
√ The Company did not have material litigation and arbitration during the year
XI Punishment and rectification to the listed Company, its directors, supervisors,senior management, controlling shareholders, beneficial controllers and acquirers
□ Applicable√ Not applicable
XII Explanation on credibility status of the Company, its controlling shareholders andbeneficial controllers during the Reporting Period
√ Applicable□ Not applicable
The Company, its controlling shareholders and beneficial controllers held reliablecreditability during the Reporting Period.
XIII Equity incentive plan, employee shareholding plan or other employee incentive
measures of the Company and their impacts(I) Incentive matters disclosed in temporary announcements and without further progress or
change in subsequent implementation
√ Applicable□ Not applicable
Item | Query index |
Announcement on Adjusting the Performance Evaluation Indicators at the Company Level in 2020 in the 2018 Restricted Share Incentive Plan and Related Documents |
Announcement on Adjusting the Repurchase Price of Restricted Share Incentive Plan in 2018 | Website of Shanghai Stock Exchange website on 26 August 2020, China Securities Journal, Shanghai Securities News, Securities Times and Securities Daily |
Announcement on Repurchase and Cancellation of Some Restricted Shares for Equity Incentive | Website of Shanghai Stock Exchange website on 26 August 2020, China Securities Journal, Shanghai Securities News, Securities Times and Securities Daily |
Announcement on Capital Reduction of Repurchase and Cancellation of Some Restricted Shares | Website of Shanghai Stock Exchange website on 26 August 2020, China Securities Journal, Shanghai Securities News, Securities Times and Securities Daily |
Announcement on the Implementation of Repurchase and Cancellation of Restricted Share for Equity Incentive | Website of Shanghai Stock Exchange website on 28 October 2020, China Securities Journal, Shanghai Securities News, Securities Times and Securities Daily |
(II) Incentive matters not disclosed in temporary announcements or with further progressEquity incentive
□ Applicable√ Not applicable
Other particulars
□ Applicable√ Not applicable
Employee shareholding plan
□ Applicable√ Not applicable
Other incentive measures
□ Applicable√ Not applicable
XIV Major related transactions(I) Related transactions in relation to daily operation1 Events disclosed in temporary announcements and without further progress or changein subsequent implementation
□ Applicable√ Not applicable
2 Events disclosed in temporary announcements and with further progress or change insubsequent implementation
√ Applicable□ Not applicable
The 12
thmeeting of the second session of the Board of Directors and 2019 annual generalmeeting of the Company reviewed and passed theProposal on Expected Daily RelatedTransaction Quota in 2019on 31 March 2020 and 22 April 2020 respectively. Refer to theAnnouncement for Expected Daily Related Transaction Quota in 2020disclosed by the Companyon the website of Shanghai Stock Exchange on 2 April 2020 (announcement No.: 2020-019)for details. In 2020, the daily related transactions of the Company did not exceed theexpected amount at the beginning of the year.The expected and actual daily related transactions of 2020 are as follows:
Type of related transactions | Related party | Estimated amount in 2020 | Actual amount in 2020 |
Related party's bank account deposit | Zhejiang Yueqing Rural Commercial Bank Company Limited | No more than RMB 150 million for daily maximum limit | RMB 143,907,700 |
Particulars on related-party leases | Huzhou Meizhuang Town Science and Technology Incubation Park Co., Ltd. | RMB 1.8 million | RMB 652,600 |
Note: The "actual amount in 2020” of Zhejiang Yueqing Rural Commercial Bank CompanyLimited is the account balance as at 31 December 2020. In 2020, the Company obtaineddeposit interest of RMB 5,939,700 from Zhejiang Yueqing Rural Commercial Bank CompanyLimited.
3 Events not disclosed in temporary announcements
□ Applicable√ Not applicable
(II) Related transactions as a result of acquisition and disposal of assets or equity1 Events disclosed in temporary announcements and without further progress or changein subsequent implementation
□ Applicable√ Not applicable
2 Events disclosed in temporary announcements and with further progress or change insubsequent implementation
□ Applicable√ Not applicable
3 Events not disclosed in temporary announcements
□ Applicable√ Not applicable
4 Disclosable performance achievements during the Reporting Period when involved withagreed-upon performance
□ Applicable√ Not applicable
(III) Major related transactions in joint external investment1 Events disclosed in temporary announcements and without further progress or change
in subsequent implementation
□ Applicable√ Not applicable
2 Events disclosed in temporary announcements and with further progress or change in
subsequent implementation
□ Applicable√ Not applicable
3 Events not disclosed in temporary announcements
□ Applicable√ Not applicable
(IV) Creditor’s rights and debts with related parties
1、 Events disclosed in temporary announcements and without further progress or change
in subsequent implementation
□ Applicable√ Not applicable
2、 Events disclosed in temporary announcements and with further progress or change insubsequent implementation
□ Applicable√ Not applicable
3、 Events not disclosed in temporary announcements
□ Applicable√ Not applicable
(V) Others
□ Applicable√ Not applicable
XV Material contracts and their performance(I) Trusteeship, contracting and leasing matters(II) Trusteeship
□ Applicable√ Not applicable
1 Contracting
□ Applicable√ Not applicable
2 Leasing
□ Applicable√ Not applicable
(III) Guarantees
√ Applicable□ Not applicable
Unit: RMB 00’000 Currency: RMB
Company's external guarantees (excluding guarantees for subsidiaries) | |||||||||||||
Guarantor | Relationship between the guarantor and the listed company | Guaranteed Party | Amount of guarantee | Date of guarantee (agreement signing date) | Starting date | Maturity date | Type of guarantee | Whether the guarantee has been performed | Whether the guarantee is overdue | Overdue amount of guarantee | Whether there is a counter-guarantee | Whether it is guaranteed by the related party | Related relationship |
Total amount of guarantee incurred during the Reporting Period (excluding guarantee for subsidiaries) | 0 | ||||||||||||
Total balance of guarantee at the end of the Reporting Period (A) (excluding guarantees for subsidiaries) | 0 | ||||||||||||
The guarantee of the Company and its subsidiaries for the subsidiaries | |||||||||||||
Total amount of guarantee for subsidiaries during the Reporting Period | 23,141.25 | ||||||||||||
Total balance of guarantee for subsidiaries at the end of the Reporting Period (B) | 9,900 | ||||||||||||
Total amount of the Company guarantee (including guarantee for subsidiaries) |
Total amount of guarantee (A + B) | 9,900 |
Proportion of total guarantee amount to the Company’s net assets (%) | 4.14 |
Where: | |
Amount of guarantee for shareholders, beneficial controllers and related parties thereof (C) | |
Amount of debt guarantees directly or indirectly provided for guaranteed objects with asset-liability ratio exceeding 70% (D) | |
Total amount of guarantee exceeding 50% of the net assets (E) | |
Sum of the above three guarantees (C+D+E) | |
Description on the possible joint liability for satisfaction of unexpired guarantee | |
Description on guarantees |
(IV) Entrusting others to manage cash assets
1. Entrusted wealth management
(1) Overall condition of entrusted wealth management
√ Applicable□ Not applicable
Unit: RMB 0’000 Currency: RMB
Types | Source of fund | Amount incurred | Undue balance | Overdue uncollected amount |
Bank wealth management products | Self-owned capital | 17,000 | 3,000 | 0 |
Trust wealth management products | Self-owned capital | 7,000 | 0 | 0 |
Others
□ Applicable√ Not applicable
(2) Individual entrusted wealth management
√ Applicable□ Not applicable
Unit: RMB 0’000 Currency: RMB
Trustee | Type of entrusted wealth management | Amount of entrusted wealth management | Beginning date of entrusted wealth management | Termination date of entrusted wealth management | Source of fund | Usage of fund | Method to determine return | Annualized rate of return | Expected return (if any) | Actual gains or losses | Actual recovery | Whether it has gone through a legal procedure or not | Whether there is a future entrusted wealth management plan or not | Amount of provision for the impairment (if any) |
China Merchants Bank Xixing Branch | Principal guaranteed with floating returns | 14,000 | 2019/9/3 | 2020/3/3 | Self-owned capital | 1.55% or 2.69% or 2.89% | 187.78 | Recovered | Yes | No |
Others
□ Applicable√ Not applicable
(3) Provision for the impairment of entrusted wealth management
□ Applicable√ Not applicable
2. Entrusted loans
(1) Overall condition of entrusted loans
□ Applicable√ Not applicable
Others
□ Applicable√ Not applicable
(2) Individual entrusted loans
□ Applicable√ Not applicable
Others
□ Applicable√ Not applicable
(3) Provision for the impairment of entrusted loans
□ Applicable√ Not applicable
3. Others
□ Applicable√ Not applicable
(V) Other material contracts
□ Applicable√ Not applicable
XVI Explanation on other material matters
□ Applicable√ Not applicable
XVII Active fulfillment of social responsibilities(I) Poverty alleviation by the listed company
□ Applicable√ Not applicable
(II) Overview of social responsibility
√ Applicable□ Not applicable
SeeSustainable Development Report
of Proya Cosmetics Co., Ltd. 2020on the website ofShanghai Stock Exchange (www.sse.com.cn) disclosed on the same day
(III) Environmental information
1. Explanation on environmental protection of the company and its major subsidiaries
falling into the category of key pollutant discharging units designated by theenvironmental protection authorities
□ Applicable√ Not applicable
2. Explanation on environmental protection of companies other than key pollutant
discharging units
√ Applicable□ Not applicable
1. During the Reporting Period, the wastewater discharge was guaranteed to meet ClassA standard by packing replacement in cooling tower, cleaning of boiler furnace, overallassessment of monthly production schedule, reduction of wire and boiler change, decreaseof wastewater discharge, and 24h online monitoring of COD content in the treated water.
2. The concept of resource-saving and environment-friendly green factory was continuedduring the Reporting Period. The wastewater discharge at the production base wasguaranteed to meet Class A standard by new investment of 120t water storage tank, prematurecooling of process cooling water by peak-valley electricity, improvement of manufacturingefficiency, reduction of energy consumption input; addition of 4t ultra-low nitrogen gasfired boiler, active support of “actions on new standards for NOx atmospheric emissionfrom boilers” issued by the Department of Environmental Protection, improvement ofambient air quality; intelligent evaluation of monthly production schedule by schedulingsoftware, and decrease of wastewater discharge; and 24h online monitoring of COD contentin the treated water.
3. Each department continued to perform the garbage sorting, pure water filtration andrecycling of bottle washer, and rationalization proposals on energy conservation andconsumption reduction. While providing customers with high-quality products and services,the factory has been committed to protecting the natural environment and sparing no effortto build a resource-saving and environment-friendly green factory.
3. Explanation on environment information of companies other than key pollutant
discharging units not disclosed
□ Applicable√ Not applicable
4. Explanation on further progress or changes of environmental information disclosed
during the Reporting Period
□ Applicable√ Not applicable
(IV) Other particulars
□ Applicable√ Not applicable
XVIII Convertible corporate bonds
□ Applicable√ Not applicable
Section VI Changes in Ordinary Shares and Shareholders
I Changes in share capital of ordinary shares(I) Changes in ordinary shares1 Changes in ordinary shares
Unit: 0’000 shares
Before the change | Increase/decrease of the change (+, -) | After the change | |||||||
Number | Percentage (%) | Issue of new shares | Bonus shares | Capital reserve-converted shares | Others | Sub-total | Number | Percentage (%) | |
I. Restricted shares | 13,917.7760 | 69.1499 | -13,843.0335 | -13,843.0335 | 74.7425 | 0.3716 | |||
1. State-owned shares | |||||||||
2. Shares held by state-owned legal person | |||||||||
3. Other domestic shares | 13,917.7760 | 69.1499 | -13,843.0335 | -13,843.0335 | 74.7425 | 0.3716 | |||
Where: Shares held by domestic non-state-owned legal person | |||||||||
Shares held by domestic natural person | 13,917.7760 | 69.1499 | -13,843.0335 | -13,843.0335 | 74.7425 | 0.3716 | |||
4. Overseas |
shares | |||||||||
Where: Shares held by overseas legal person | |||||||||
Shares held by overseas natural person | |||||||||
II. Non-restricted circulating shares | 6,209.18 | 30.8501 | +13,827.7700 | +13,827.7700 | 20,036.9500 | 99.6284 | |||
1. Ordinary RMB shares | 6,209.18 | 30.8501 | +13,827.7700 | +13,827.7700 | 20,036.9500 | 99.6284 | |||
2. Domestically listed foreign shares | |||||||||
3. Overseas listed foreign shares | |||||||||
4. Others | |||||||||
III. Total ordinary shares | 20,126.9560 | 100.00 | -15.2635 | -15.2635 | 20,111.6925 | 100.00 |
2 Explanation on changes in ordinary shares
√ Applicable□ Not applicable
On 30 December 2019, the 10
th
meeting of the second session of the Board of Directorsand the 10
thmeeting of the second session of the Board of Supervisors of the Companyreviewed and passed theProposal on Achievements of Lifting Selling Restrictions in theFirst Selling Restrictions Lifting Date for the First Grant and Reserved Grant ofRestricted Share Incentive Plan in 2018, and agreed to handle the matters about liftingthe selling restrictions in a unified form for the incentive objects in line with theconditions for lifting selling restrictions, totaling 369,500 restricted shares lifted.The listing and circulation date of such lifted shares is 6 January 2020. Thenon-restricted circulating shares of the Company increased from 62,091,800 shares before
this listing to 62,461,300 shares; the restricted circulating shares decreased from139,177,760 shares before this listing to 138,808,260 shares.
On 30 October 2020, the Company received theCertificate of Securities ChangeRegistrationissued by Shanghai Branch of China Securities Depository and ClearingCorporation Limited, and completed the repurchase and cancellation of 152,635 restrictedshares that were authorized but not yet unlocked of incentive objects not meeting theincentive conditions. The total non-restricted shares of the Company decreased from201,269,560 shares before this repurchase to 201,116,925 shares, in which thenon-restricted circulating shares are 62,461,300 shares and the restricted circulatingshares are 138,655,625 shares.
The Company carried out initial public offering of some restricted shares on 16November 2020, and the number of restricted shares for listing and circulation is137,908,200 shares this time. The total shares of the Company remains unchanged, in whichthe non-restricted circulating shares increased from 62,461,300 shares before thislisting to 200,369,500 share; the restricted circulating shares decreased from
138,655,625 shares before this listing to 747,425 shares.
3 Impact of changes in ordinary shares on the earnings per share, net asset value pershare and other financial indicators in the last year and period (if any)
□ Applicable√ Not applicable
4 Other contents that the Company deems necessary and the securities regulatoryauthorities require disclosing
□ Applicable√ Not applicable
(II) Changes in restricted shares
√ Applicable□ Not applicable
Unit: Share
Name of shareholder | Number of restricted shares at the beginning of the year | Number of restricted shares removed during the year | Increase in number of restricted shares during the year | Number of restricted shares at the end of the year | Reason for selling restrictions | Date of removal of selling restrictions |
Hou Juncheng | 72,640,500 | 72,640,500 | 0 | 0 | Initial public offering | 16 November 2020 |
Fang Yuyou | 48,858,000 | 48,858,000 | 0 | 0 | Initial public offering | 16 November 2020 |
Li Xiaolin | 7,589,400 | 7,589,400 | 0 | 0 | Initial public offering | 16 November 2020 |
Xu Junqing | 7,419,900 | 7,419,900 | 0 | 0 | Initial public offering | 16 November 2020 |
Fang Aifen | 390,900 | 390,900 | 0 | 0 | Initial public offering | 16 November 2020 |
Ye Caifu | 216,300 | 216,300 | 0 | 0 | Initial public offering | 16 November 2020 |
Li Jianqing | 199,050 | 199,050 | 0 | 0 | Initial public offering | 16 November 2020 |
Chen Dongfang | 183,300 | 183,300 | 0 | 0 | Initial public offering | 16 November 2020 |
Li Wenqing | 159,150 | 159,150 | 0 | 0 | Initial public offering | 16 November 2020 |
Xu Dongkui | 68,100 | 68,100 | 0 | 0 | Initial public offering | 16 November 2020 |
Bao Qingfang | 65,400 | 65,400 | 0 | 0 | Initial public offering | 16 November 2020 |
Fang Jiaqin | 49,950 | 49,950 | 0 | 0 | Initial public offering | 16 November 2020 |
Fang Shanming | 49,950 | 49,950 | 0 | 0 | Initial public offering | 16 November 2020 |
Ye Hong | 18,300 | 18,300 | 0 | 0 | Initial public offering | 16 November 2020 |
Jin Yanhua | 97,481 | 28,671 | 0 | 68,810 | First grant of the restricted share incentive plan in 2018 | - |
Zhang Yefeng | 47,770 | 13,750 | 0 | 34,020 | First grant of the restricted share incentive | - |
plan in 2018 | ||||||
Wang Li | 58,900 | 17,670 | 0 | 41,230 | First grant of the restricted share incentive plan in 2018 | - |
25 grantees (first grant of the restricted share incentive plan in 2018) | 865,023 | 254,063 | -149,315 | 461,645 | First grant of the restricted share incentive plan in 2018 | - |
10 grantees (reserved grant of the restricted share incentive plan in 2018) | 200,386 | 55,346 | -3,320 | 141,720 | Reserved grant of the restricted share incentive plan in 2018 | - |
Total | 139,177,760 | 138,277,700 | -152,635 | 747,425 | / | / |
Note: The negative “increase in number of restricted shares during the year” is due tothe repurchase of restricted shares for equity incentive.II Issuance and listing of securities(I) Issuance of securities as at the Reporting Period
□ Applicable√ Not applicable
Explanation on issuance of securities as at the Reporting Period (please provide separateexplanation on the bonds with different interest rates during their duration):
□ Applicable√ Not applicable
(II) Changes in the total number of ordinary shares and shareholder structure of the Company
and changes in the structure of assets and liabilities of the Company
√ Applicable□ Not applicable
The total number of ordinary shares of the Company was 201,269,560 at the beginningof the Reporting Period and 201,116,925 at the end of the Reporting Period.
At the beginning of the Reporting Period, the total assets were RMB 2,979,365,076.82,total liabilities were RMB 909,307,033.25, and the asset-liability ratio was 30.52%. Atthe end of the Reporting Period, the total assets were RMB 3,636,882,185.29, totalliabilities were RMB 1,155,019,919.16, and the asset-liability ratio was 31.76%.
(III) Existing internal employee shares
□ Applicable√ Not applicable
III Shareholders and beneficial controllers(I) Total number of shareholders
Total number of shareholders of ordinary shares as at the end of the Reporting Period | 16,869 |
Total number of shareholders of ordinary shares at the end of last month prior to the disclosure date of this annual report | 20,423 |
Total number of shareholders of preferred shares whose voting rights have been restored as at the end of the Reporting Period | 0 |
Total number of shareholders of preferred shares whose voting rights have been restored at the end of last month prior to the disclosure date of this annual report | 0 |
(II) Table of shareholdings of the top ten shareholders and the top ten shareholders of shares
in circulation (or shareholders not subject to selling restrictions) as at the end of the Reporting
Period
Unit: Share
Shareholdings of the top ten shareholders | |||||||
Name of shareholder (full name) | Change during the Reporting Period | Number of shares held as at the end of the period | Percentage (%) | Number of shares held subject to selling restrictions | Pledged or frozen | Nature of shareholder | |
Share status | Number | ||||||
Hou Juncheng | 72,640,500 | 36.12 | 0 | None | Domestic natural person | ||
Fang Yuyou | -4,038,882 | 44,819,118 | 22.29 | 0 | Pledge | 23,120,000 | Domestic natural person |
Hong Kong Securities Clearing Company Limited | 16,309,444 | 16,759,683 | 8.33 | 0 | None | Others | |
Li Xiaolin | -1,345,178 | 6,244,222 | 3.10 | 0 | None | Domestic natural person | |
Xu Junqing | -1,476,099 | 5,943,801 | 2.96 | 0 | None | Domestic natural person | |
Cao Liangguo | -1,373,912 | 4,124,938 | 2.05 | 0 | None | Domestic natural person | |
China Construction Bank Corporation - Yinhua Fuyu Theme Hybrid Securities Investment Fund(中国建设银行股份有限公司-银华富裕主题混合型证券投资基金) | 1,209,437 | 3,649,293 | 1.81 | 0 | None | Others |
Industrial and Commercial Bank of China Limited-Invesco Great Wall Emerging Mature and Hybrid Equity Investment Funds(中国工商银行股份有限公司-景顺长城新兴成长混合型证券投资基金) | 2,499,766 | 2,499,766 | 1.24 | 0 | None | Others | |||
China Citic Bank Corporation Limited - China ABC-CA Strategy Selected Hybrid Securities Investment Fund(中信银行股份有限公司-农银汇理策略精选混合型证券投资基金) | 221,096 | 1,028,941 | 0.51 | 0 | None | Others | |||
Abu Dhabi Investment Authority | -142,311 | 997,598 | 0.50 | 0 | None | Others | |||
Shareholdings of the top ten shareholders of non-restricted circulating shares | |||||||||
Name of shareholder | Number of | Type and number of shares |
non-restricted circulating shares held | Type | Number | |
Hou Juncheng | 72,640,500 | Ordinary RMB Shares | 72,640,500 |
Fang Yuyou | 44,819,118 | Ordinary RMB Shares | 44,819,118 |
Hong Kong Securities Clearing Company Limited | 16,759,683 | Ordinary RMB Shares | 16,759,683 |
Li Xiaolin | 6,244,222 | Ordinary RMB Shares | 6,244,222 |
Xu Junqing | 5,943,801 | Ordinary RMB Shares | 5,943,801 |
Cao Liangguo | 4,124,938 | Ordinary RMB Shares | 4,124,938 |
China Construction Bank Corporation - Yinhua Fuyu Theme Hybrid Securities Investment Fund(中国建设银行股份有限公司-银华富裕主题混合型证券投资基金) | 3,649,293 | Ordinary RMB Shares | 3,649,293 |
Industrial and Commercial Bank of China Limited-Invesco Great Wall Emerging Mature and Hybrid Equity Investment Funds(中国工商银行股份有限公司-景顺长城新兴成长混合型证券投资基金) | 2,499,766 | Ordinary RMB Shares | 2,499,766 |
China Citic Bank Corporation Limited - China ABC-CA Strategy Selected Hybrid Securities Investment Fund(中信银行股份有限公司-农银汇理策略精选混合型证券投资基金) | 1,028,941 | Ordinary RMB Shares | 1,028,941 |
Abu Dhabi Investment Authority | 997,598 | Ordinary RMB Shares | 997,598 |
Explanation on the related relationship or parties acting in concert among the above shareholders | Fang Yuyou is the younger brother of Hou Juncheng's spouse Fang Aiqin, so Hou Juncheng and Fang Yuyou are related. | ||
Explanation on the preference shareholders with voting rights restored and their shareholdings | None |
Shareholdings of the top ten shareholders subject to trading moratorium and the conditionof trading moratorium
√ Applicable□ Not applicable
Unit: Share
Number | Name of restricted shareholder | Number of restricted shares | Listed transactions of restricted shares | Selling restrictions | |
Trading time available for listing | Number of new tradable shares | ||||
1 | Equity incentive object | 747,425 | See “note” for details | ||
Explanation on the related relationship or parties acting in concert among the above shareholders | None |
Note: The restricted shares held by the equity incentive object is those from the firstgrant and reserved grant of restricted share incentive plan of the Company in 2018. Therestricted period of first-grant shares is 24 months and 36 months from the completionof the registration of first-grant restricted share in Shanghai Branch of China SecuritiesDepository and Clearing Corporation Limited (10 September 2018); the restricted periodof reserved-grant shares is 25 months and 37 months from the completion of the registrationof reserved-grant restricted share in Shanghai Branch of China Securities Depository andClearing Corporation Limited (10 September 2018).
(III) Strategic investors or general legal persons becoming the top ten shareholders because of
placing of new shares
□ Applicable√ Not applicable
IV Controlling shareholders and beneficial controllers(I) Controlling shareholder1 Legal person
□ Applicable√ Not applicable
2 Natural person
√ Applicable□ Not applicable
Name | Hou Juncheng, Fang Aiqin |
Nationality | China |
Acquire right of residence in other countries or regions or not | No |
Main job and title | Hou Juncheng and Fang Aiqin are husband and wife. Hou Juncheng was the Chairman of the Company, and Fang Aiqin was the Senior Purchasing Consultant of the Company. |
3 Special explanation on the Company not having controlling shareholders
□ Applicable√ Not applicable
4 Index and date of changes in controlling shareholders during the Reporting Period
□ Applicable√ Not applicable
5 Diagram of the ownership and controlling relationship between the Company and itscontrolling shareholders
√ Applicable□ Not applicable
夫妇 | Couple |
侯军呈 | Hou Juncheng |
方爱琴 | Fang Aiqin |
潍坊正益 | Weifang Zhengyi |
珀莱雅化妆品股份有限公司 | Proya Cosmetics Co., Ltd. |
Note: The shareholding ratio in the above diagram is the data as at the end of the ReportingPeriod.
(II) Beneficial controllers1 Legal person
□ Applicable√ Not applicable
2 Natural person
√ Applicable□ Not applicable
Name | Hou Juncheng, Fang Aiqin |
Nationality | China |
Acquire right of residence in other countries or regions or not | No |
Main job and title | Hou Juncheng and Fang Aiqin are husband and wife. Hou Juncheng was the Chairman of the Company, and Fang Aiqin |
was the Senior Purchasing Consultant of the Company. | |
Shareholdings in other domestic or overseas listed companies over the past 10 years | None |
3 Special explanation on the Company not having beneficial controllers
□ Applicable√ Not applicable
4 Index and date of changes in beneficial controllers during the Reporting Period
□ Applicable√ Not applicable
5 Diagram of the ownership and controlling relationship between the Company and itsbeneficial controllers
√ Applicable□ Not applicable
夫妇 | Couple |
侯军呈 | Hou Juncheng |
方爱琴 | Fang Aiqin |
潍坊正益 | Weifang Zhengyi |
珀莱雅化妆品股份有限公司 | Proya Cosmetics Co., Ltd. |
Note: The shareholding ratio in the above diagram is the data as at the end of the ReportingPeriod.
6 Control of the Company by beneficial controllers by way of trust or other means ofasset management
□ Applicable√ Not applicable
(III) Other explanation regarding the controlling shareholders and the beneficial controllers
□ Applicable√ Not applicable
V Other legal person shareholders with more than 10% shareholdings
□ Applicable√ Not applicable
VI Explanation on limitation on reduction of shareholding
□ Applicable√ Not applicable
Section VII Preferred Shares
□ Applicable√ Not applicable
Section VIII Directors, Supervisors, Senior Management and Employees
I Shareholding change and remuneration(I) Shareholding change and remuneration of directors, supervisors and senior management currently employed and retired during the Reporting Period
√ Applicable□ Not applicable
Unit: Share
Name | Position (note) | Gender | Age | From | To | Number of shares held at the beginning of the year | Number of shares held at the end of the year | Change in share of the year | Reasons for change | Total pre-tax remuneration from the Company during the Reporting Period (RMB 0’000) | Whether to get remuneration from related parties of the Company |
Hou Juncheng | Chairman | Male | 57 | 2015.7.30 | 2021.9.2 | 72,640,500 | 72,640,500 | 0 | 162.51 | No | |
Fang Yuyou | Director, General Manager | Male | 52 | 2015.7.30 | 2021.9.2 | 48,858,000 | 44,819,118 | -4,038,882 | Decrease in shareholding due to personal capital needs | 162.51 | No |
Cao Liangguo | Director, Deputy General Manager | Male | 49 | 2015.7.30 | 2021.9.2 | 5,498,850 | 4,124,938 | -1,373,912 | Decrease in shareholding due to | 125.61 | No |
personal capital needs | |||||||||||
Chu Xiuqi | Independent Director | Male | 57 | 2015.7.30 | 2021.9.2 | 0 | 0 | 0 | 9.52 | No | |
Chen Yan | Independent Director | Male | 49 | 2017.8.1 | 2021.9.2 | 0 | 0 | 0 | 9.52 | No | |
Ye Nana | Chairman of the Board of Supervisors | Female | 37 | 2018.9.3 | 2021.9.2 | 0 | 0 | 0 | 21.21 | No | |
Fang Qin | Supervisor | Female | 31 | 2018.5.8 | 2021.9.2 | 0 | 0 | 0 | 21.26 | No | |
Hou Luting | Supervisor | Female | 32 | 2018.5.2 | 2021.9.2 | 0 | 0 | 0 | 17.66 | No | |
Jin Yanhua | Deputy General Manager | Male | 59 | 2018.4.16 | 2021.9.2 | 97,481 | 73,181 | -24,300 | Decrease in shareholding due to personal capital needs | 62.31 | No |
Wang Li | Financial Leader | Female | 43 | 2018.9.3 | 2021.9.2 | 58,900 | 44,200 | -14,700 | Decrease in shareholding due to personal capital needs | 82.77 | No |
Zhang Yefeng | Deputy General | Female | 46 | 2015.7.30 | 2021.9.2 | 47,770 | 35,870 | -11,900 | Decrease in | 59.99 | No |
Manager, Board Secretary | shareholding due to personal capital needs | ||||||||||
Total | / | / | / | / | / | 127,201,501 | 121,737,807 | -5,463,694 | / | 734.87 | / |
Name | Main working experience |
Hou Juncheng | Hou Juncheng worked in Yiwu Liaoyuan Daily Chemical Co., Ltd., Hangzhou Proya Cosmetics Co., Ltd. and Hangzhou Proya Holding Co., Ltd. Since 2007, Hou Juncheng has been working in the Company and its predecessor. He has served as the Executive Director of the Company since September 2007, and Chairman of the Company and its predecessor since August 2012. As at the end of the Reporting Period, Hou Juncheng concurrently served as Executive Director and General Manager of Hangzhou Proya Trade Co., Ltd., Executive Director of Zhejiang Meiligu Electronic Commerce Co., Ltd., Executive Director of Huzhou Chuangdai E-commerce Co., Ltd., Executive Director of Yueqing Laiya Trading Co., Ltd., Internal Director and Representative Director of Hanna Cosmetics Co., Ltd., Korea, Executive Director and General Manager of Hapsode (Hangzhou) Cosmetics Co., Ltd., Executive Director and General Manager of Huzhou Hapsode, Executive Director and General Manager of Danyang Hapsode, Executive Director and General Manager of Mijing Siyu (Hangzhou) Cosmetics Co., Ltd., Chairman and General Manager of Hangzhou Kunyi Industrial Co., Ltd., Chairman of Cosmetics Industry (Huzhou) Investment Development Co., Ltd., Executive Director and General Manager of Huzhou Meizhuang Town Science and Technology Incubation Park Co., Ltd., Chairman of Huzhou Younimi Cosmetics Co., Ltd., and Director of Xinjiang Huanyu New Silk Road Investment Development Co., Ltd. |
Fang Yuyou | Fang Yuyou worked in Shijiazhuang Liaoyuan Cosmetics Co., Ltd., Hangzhou Proya Cosmetics Co., Ltd. and Hangzhou Proya Holding Co., Ltd. Since 2007, Fang Yuyou has been working in the Company and its predecessor. Fang Yuyou has served as the Director and General Manager of the Company and its predecessor since August 2012. As at the end of the Reporting Period, Fang Yuyou concurrently served as General Manager of Zhejiang Meiligu Electronic Commerce Co., Ltd., General Manager of Yueqing Laiya Trading Co., Ltd., Internal Director of Hanna Cosmetics Co., Ltd., Korea, Director of Hangzhou Kunyi Industrial Co., Ltd., Director of Hangzhou Tairentang Biotechnology Co., Ltd., Executive Director and Manager of Hangzhou Fangxiake Investment Co., Ltd., Director of Huzhou Younimi Cosmetics Co., Ltd. and Director of Hong Kong Xinghuo Industry Limited. |
Cao | Cao Liangguo worked in Leshan Chengbei Electric Appliance Factory, Hainan International United Cosmetics Co., Ltd., Chongqing |
Liangguo | Xielida Cosmetics Co., Ltd., Chongqing Dongyin Technology Industry Co., Ltd., Hangzhou Proya Cosmetics Co., Ltd. and Hangzhou Proya Holding Co., Ltd. Since 2007, Cao Liangguo has been working in the Company and its predecessor. Cao Liangguo has served as the Director and Deputy General Manager of the Company and its predecessor since August 2012. As at the end of the Reporting Period, he concurrently serves as Supervisor of Hanna Cosmetics Co., Ltd., Korea, Director of Hangzhou Kunyi Industrial Co., Ltd., Director of Hangzhou Tairentang Biotechnology Co., Ltd., Internal Director and General Manager of Hapsode Co., Ltd., Korea, Director of Huzhou Younimi Cosmetics Co., Ltd., Director of HONGKONG KESHI TRADING LIMITED, Director of Ningbo Keshi Trading Limited, Director of Hong Kong Zhongwen Electronic Commerce Co., Limited, Director of Hong Kong Wanyan Electronic Commerce Co., Limited, and Director of Japan OR. |
Chu Xiuqi | Chu Xiuqi once served as Deputy Director of the Department Store Bureau of the Ministry of Commerce of the People's Republic of China, Deputy General Manager of China National General Merchandise and Textile CO., Ltd., and Executive Vice President and Secretary General of China Commerce Association for General Merchandise. As at the end of the Reporting Period, Chu Xiuqi concurrently served as Honorary President of China Commerce Association for General Merchandise, Vice Chairman of China Sporting Goods Federation, President of Trade Fair Economy Magazine, Vice Chairman of Reed Huabai Exhibitions (Beijing) Co., Ltd., Independent Director of Tianjin Yishang Friendly Co., Ltd., Independent Director of Zhejiang Aokang Shoes Co., Ltd. and Independent Director of Proya Cosmetics Co., Ltd. |
Chen Yan | Chen Yan once served as Accountant of Huzhou Textile Import and Export Co., Ltd., Project Director of Zhejiang Omex Environmental Engineering Co., Ltd., Vice Chairman, Chief Financial Officer and Board Secretary and Deputy General Manager of Zhejiang Unifull Industrial Fibre Co., Ltd, and Investment Director of Huzhou Youchuang Investment Management Partnership (Limited Partnership). As at the end of the Reporting Period, Chen Yan concurrently served as Executive Partner of Huzhou Haoyu Investment Management Partnership (Limited Partnership), Executive Partner of Huzhou Haorui Enterprise Management Consulting Partnership (Limited Partnership), Executive Partner of Huzhou Juzhi Equity Investment Partnership (Limited Partnership), Supervisor of Hangzhou Quanzhimai Electronic Commerce Co., Ltd., Supervisor of Huzhou Jingrui Human Resources Management Co., Ltd., Supervisor of Shanghai Beikebo Technology Co., Ltd., Executive Director and General Manager of Huzhou Shengshun Trading Co., Ltd., and Independent Director of Proya Cosmetics Co., Ltd. |
Ye Nana | Ye Nana worked in Zhejiang Dahua Technology Co., Ltd. and Hangzhou Gankun Industrial Co., Ltd. From 2010 to the end of the Reporting Period, Ye Nana served as Senior Administrative Manager in the Company and its predecessor, and has served as Supervisor of Huzhou Younimi Cosmetics Co., Ltd. since March 2019. |
Fang Qin | From November 2008 to January 2018, Fang Qin served as Head of the Planning Department of the Company and its predecessor, and from January 2018 to the end of the Reporting Period, Fang Qin served as Planning Strategy Manager of the Company. |
Hou Luting | From July 2013 to January 2014, Hou Luting served as Expatriate Financial Specialist in Zhonghui Certified Public Accountants, and from February 2014 to June 2017, Hou Luting served as Packaging Material Purchasing Specialist in the Purchasing Department of the Company; from June 2017 to October 2019, Hou Luting served as Raw Material Purchasing Specialist in the Purchasing Department |
of the Company; since October 2019, Hou Luting has served as Raw Material Evaluation Engineer in the Price Evaluation Department of the Company. | |
Jin Yanhua | Jin Yanhua worked in Zhejiang Sanmen Chemical Fertilizer Plant, Zhejiang InBev Yandance Beer Co., Ltd., Zhejiang InBev Jinhua Beer Co., Ltd., Hangzhou Proya Cosmetics Co., Ltd. and Hangzhou Proya Holding Co., Ltd. From 2007 to August 2012, Jin Yanhua served as General Manager of Huzhou Factory of the Company and its predecessor. Since August 2012, Jin Yanhua has served the General Manager of Supply Chain Management Center of the Company; since April 2018, Jin Yanhua has served as Deputy General Manager of the Company. As at the end of the Reporting Period, Jin Yanhua concurrently served as Executive Director of Anya (Huzhou) Cosmetics Co., Ltd., Executive Director of Huzhou UZERO Trading Co., Ltd., Manager of Huzhou Chuangdai E-commerce Co., Ltd., Executive Director and General Manager of Hangzhou Proya Commercial Management Co., Ltd., Executive Director and General Manager of Huzhou Niuke Technology Co., Ltd., Executive Director and General Manager of Huzhou Tizhi Cosmetics Co., Ltd., Director of Hong Kong Wanyan Electronic Commerce Co., Limited, Executive Director and General Manager of Hangzhou Wanyan Culture Media Co., Ltd., Executive Director and General Manager of Zhejiang Biyouti Cosmetics Co., Ltd., Director of Hong Kong Zhongwen Electronic Commerce Co., Limited, Chairman of Shanghai Zhongwen Electronic Commerce Co., Ltd., Executive Director and General Manager of Ningbo Proya Enterprise Consulting Management Co., Ltd., Chairman of HONGKONG KESHI TRADING LIMITED, Chairman of Ningbo Keshi Trading Limited, Chairman of Ningbo TIMAGE Cosmetics Co., Ltd., Director of Ningbo Segu Brand Management Co., Ltd. and Executive Partner of Weifang Zhengyi. In addition, Jin Yanhua served as Executive Director of Zhejiang Qingya Culture Art Communication Co., Ltd., Executive Director of Hangzhou Proya Snail Fitness Co., Ltd., Executive Director and General Manager of Hangzhou Yizhuo Culture Media Co., Ltd., Executive Director and General Manager of Hangzhou Weiluoke Cosmetics Co., Ltd., Executive Director and General Manager of Hangzhou Oumisi Trading Co., Ltd., Director of Japan OR, Executive Director and General Manager of Guangzhou Qianxi Network Technology Co., Ltd., Director of Ningbo Xiyou Mutual Entertainment Cultural Media Co., Ltd., Director of Shanghai Healthlong Biochemical Technology Co., Ltd., Executive Director and General Manager of Huzhou Poyun Electronic Commerce Co., Ltd., Executive Director of Xuzhou Proya Information Technology Co., Ltd., Director of Shanghai Weiman Cosmetics Co., Ltd., and Executive Director and General Manager of Ningbo Weiman Cosmetics Co., Ltd. |
Wang Li | Wang Li worked in Nanjing Branch of Guangzhou Yingtai Digital Power Technology Co., Ltd., CELLSTAR of the United States, Nanjing Branch of Shanghai Ruili Sports Co., Ltd., Nanjing Biancheng Sports Co., Ltd., Vgrass Fashion Co., Ltd., Zhuoshang Clothing (Hangzhou) Co., Ltd. and Nanjing Rituo Photovoltaic Co., Ltd. Since May 2018, Wang Li has served the Chief Financial Officer of the Company. |
Zhang Yefeng | Zhang Yefeng worked in Zhejiang Modern Industry and Trade Group Co., Ltd., Guangdong Robust Group Co., Ltd., Hangzhou Aupu Electric Appliance Co., Ltd., Hangzhou Proya Cosmetics Co., Ltd. and Hangzhou Proya Holding Co., Ltd. Since 2007, Zhang Yefeng has been working in the Company and its predecessor; since August 2012, Zhang Yefeng has served as the Board Secretary and Director of Public Relations Management Department of the Company and its predecessor; since December 2015, Zhang Yefeng has served as the Deputy General Manager of the Company. As at the end of the Reporting Period, she concurrently serves as Internal Director of |
Particulars on other information
□ Applicable√ Not applicable
(II) Equity incentives granted to directors and senior management during the Reporting Period
□ Applicable√ Not applicable
√ Applicable□ Not applicable
Unit: Share
Hapsode (Korea).
Name
Name | Position | Number of restricted shares at the beginning of the year | Number of new restricted shares during the Reporting Period | Granted price of the restricted shares (RMB) | Locked shares | Locked shares | Number of the restricted shares at the end of the period | Market price at the end of the Reporting Period (Yuan) |
Jin Yanhua | Deputy General Manager | 97,481 | 0 | 17.95 | 28,671 | 68,810 | 68,810 | 12,248,180.00 |
Wang Li | Financial Leader | 58,900 | 0 | 17.95 | 17,670 | 41,230 | 41,230 | 7,338,940.00 |
Zhang Yefeng | Deputy General Manager, Board Secretary | 47,770 | 0 | 17.95 | 13,750 | 34,020 | 34,020 | 6,055,560.00 |
Total | / | 204,151 | 0 | / | 60,091 | 144,060 | 144,060 | 25,642,680.00 |
II Employment of directors, supervisors and senior management currently employed and retired during the Reporting Period(I) Employment in shareholders’ companies
√ Applicable□ Not applicable
Name of person employed | Name of shareholder’s company | Position held in shareholder’s company | From | To |
Jin Yanhua | Weifang Zhengyi | Executive Partner | August 2019 | |
Particulars on employment in shareholders’ companies | None |
(II) Employment in other companies
√ Applicable□ Not applicable
Name of person employed | Name of other companies | Position held in other companies | From | To |
Hou Juncheng | Proya Trade | Executive Director and General Manager | June 2011 | |
Meiligu | Executive Director | November 2012 | ||
Chuangdai E-commerce | Executive Director | December 2016 | ||
Yueqing Laiya | Executive Director | September 2015 | ||
Korea Hanna | Internal Director and Representative Director | November 2011 | ||
Hapsode (Hangzhou) | Executive Director and General Manager | February 2018 | ||
Huzhou Hapsode | Executive Director and General Manager | May 2016 | ||
Danyang Hapsode | Executive Director and General Manager | December 2016 | ||
Mijing Siyu (Hangzhou) | Executive Director and General Manager | February 2018 | ||
Hangzhou Kunyi Industrial Co., Ltd. | Chairman and General Manager | April 2014 | ||
Huzhou Meizhuang Town Science and Technology Incubation Park Co., Ltd. | Executive Director and General Manager | January 2019 | ||
Huzhou Younimi | Chairman | March 2019 |
Cosmetics Industry (Huzhou) Investment Development Co., Ltd. | Chairman | December 2018 | ||
Xinjiang Huanyu New Silk Road Investment Development Co., Ltd. | Director | March 2021 | ||
Fang Yuyou | Meiligu | General Manager | November 2012 | |
Yueqing Laiya | General Manager | September 2015 | ||
Korea Hanna | Internal Director | November 2011 | ||
Hangzhou Kunyi Industrial Co., Ltd. | Director | April 2014 | ||
Hangzhou Tairentang Biotechnology Co., Ltd. | Director | December 2014 | ||
Hangzhou Fangxiake Investment Co., Ltd. | Executive Director and General Manager | May 2018 | ||
Huzhou Younimi | Director | March 2019 | ||
Hong Kong Xinghuo | Director | March 2019 | ||
Cao Liangguo | Korea Hanna | Supervisor | November 2011 | |
Hangzhou Kunyi Industrial Co., Ltd. | Director | February 2013 | ||
Hangzhou Tairentang Biotechnology Co., Ltd. | Director | December 2014 | ||
Korea Hapsode, | Internal Director and General Manager | August 2017 | ||
Shanghai Zhongwen | Director | April 2019 | January 2021 | |
Huzhou Younimi | Director | March 2019 | ||
HONGKONG KESHI | Director | March 2019 | ||
Ningbo Keshi | Director | September 2019 | ||
Ningbo Segu Brand Management Co., Ltd. | Director | June 2019 | January 2021 | |
Hong Kong Zhongwen | Director | July 2019 | ||
Hong Kong Wanyan | Director | October 2019 | ||
Japan OR | Director | August 2020 | ||
Chu Xiuqi | Zhejiang Aokang Shoes Co., Ltd. | Independent Director | July 2015 | |
Tianjin Yishang Friendly Co., Ltd. | Independent Director | October 2011 | ||
Reed Huabai Exhibitions (Beijing) Co., Ltd. | Vice Chairman | July 2018 | ||
Chen Yan | Huzhou Haoyu Investment Management Partnership (Limited Partnership) | Executive Partner | March 2018 |
ZhongWang Fabric. Co., Ltd. | Independent Director | November 2017 | June 2020 | |
Hangzhou Quanzhimai Electronic Commerce Co., Ltd. | Supervisor | March 2018 | ||
Huzhou Jingrui Management Consulting Co., Ltd. | Supervisor | November 2019 | ||
Huzhou Haorui Enterprise Management Consulting Partnership (Limited Partnership) | Executive Partner | August 2019 | ||
Shanghai Beikebo Technology Co., Ltd. | Supervisor | April 2019 | ||
Huzhou Shengshun Trading Co., Ltd. | Executive Director and General Manager | March 2020 | ||
Jin Yanhua | Anya (Hangzhou) | Executive Director | December 2016 | |
Huzhou UZERO | Executive Director | January 2018 | ||
Chuangdai E-commerce | Manager | February 2018 | ||
Proya Commercial | Executive Director and General Manager | September 2018 | ||
Huzhou Niuke | Executive Director and General Manager | December 2018 | ||
Huzhou Tizhi | Executive Director and General Manager | September 2018 | ||
Hangzhou Wanyan | Executive Director and General Manager | January 2019 | ||
Hong Kong Wanyan | Director | October 2019 | ||
Zhejiang Biyouti | Executive Director and General Manager | March 2019 | ||
Shanghai Zhongwen | Chairman | April 2019 | ||
Hong Kong Zhongwen | Director | July 2019 | ||
Ningbo Segu Brand Management Co., Ltd. | Director | June 2019 | ||
HONGKONG KESHI | Chairman | March 2019 | ||
Ningbo Keshi | Chairman | September 2019 | ||
Ningbo TIMAGE | Chairman | July 2019 | ||
Weifang Zhengyi | Executive Partner | August 2019 | ||
Zhejiang Qingya | Executive Director | May 2020 |
Snail Fitness | Executive Director | August 2020 | ||
Hangzhou Yizhuo | Executive Director and General Manager | July 2020 | ||
Hangzhou Weiluoke | Executive Director and General Manager | July 2020 | ||
Hangzhou Oumisi | Executive Director and General Manager | August 2020 | ||
Hangzhou Qingyan Cosmetics Co., Ltd. | Chairman | August 2020 | December 2020 | |
Japan OR | Director | August 2020 | ||
Guangzhou Qianxi | Executive Director and General Manager | October 2020 | ||
Ningbo Xiyou Mutual Entertainment Cultural Media Co., Ltd. | Director | September 2020 | ||
Shanghai Healthlong | Director | November 2020 | ||
Huzhou Poyun | Executive Director and General Manager | September 2020 | ||
Xuzhou Proya Information Technology Co., Ltd. | Executive Director | January 2021 | ||
Shanghai Weiman Cosmetics Co., Ltd. | Director | August 2020 | ||
Ningbo Weiman Cosmetics Co., Ltd. | Executive Director and General Manager | February 2021 | ||
Zhang Yefeng | Hapsode (Korea) | Internal Director | August 2017 | |
Ye Nana | Huzhou Younimi | Supervisor | March 2019 | |
Particulars on employment in other companies | None |
III Remuneration of directors, supervisors and senior management
√ Applicable□ Not applicable
Decision-making procedures for the remuneration of directors, supervisors and senior management | The remuneration of directors and supervisors of the Company shall be submitted to the general shareholders’ meeting for approval after passing the review by the Remuneration and Appraisal Committee of the Board of Directors, the Board of Directors and the Board of Supervisors; the remuneration of senior management shall be subject to the review by the Board of Directors and the Remuneration and Appraisal Committee of the Board of Directors. |
Determination basis for the remuneration of directors, supervisors and senior management | The annual remuneration of directors, supervisors and senior management of the Company shall be based on the basic remuneration and performance appraisal. |
Actual payment of the remuneration of directors, supervisors and senior management | Already paid |
Total remuneration actually received by all directors, supervisors and senior management at the end of the Reporting Period | The total amount of remuneration received by all directors, supervisors and senior management of the Company during the Reporting Period was RMB 7,348,700. |
IV Changes in directors, supervisors and senior management of the Company
□ Applicable√ Not applicable
V Particulars on punishments by securities regulatory authorities in the past three years
□ Applicable√ Not applicable
VI Employees of the parent company and major subsidiaries(I) Employees
Number of employees in the parent company | 948 | |
Number of employees in major subsidiaries | 1,950 | |
Number of employees | 2,898 | |
Number of retirees of whom the parent company and major subsidiaries are responsible for the expenses | 6 | |
Professional structure | ||
Category | Number | |
Production personnel | 239 | |
Sales personnel | 2,002 | |
Management personnel | 461 | |
R&D personnel | 196 | |
Total | 2,898 | |
Education background | ||
Category | Number (person) | |
Undergraduate and above | 799 | |
Junior college | 616 | |
High school and below | 1,483 | |
Total | 2,898 |
(II) Remuneration policy
√ Applicable□ Not applicable
Value creation is the basis of the Company's remuneration distribution, andperformance is the intuitive embodiment of value. Based on a comprehensive and objectiveperformance evaluation system, the remuneration distribution and performance evaluationof employees are combined to comprehensively guide and motivate employees create greatervalue.
(III) Training plan
√ Applicable□ Not applicable
To gather elite talents and develop outstanding talents in the industry, the Companyhas always taken the learning and growth of employees as its primary task, to continuouslyinnovate and optimize training research, training topics, training forms, trainingimplementation, training evaluation and improvement, teacher management, etc. TheCompany has provided offline teaching and online platform learning as well as sharingto enhance participation of employees, thus enabling employees to learn more pertinentlyand autonomously.
(IV) Labor outsourcing
√ Applicable□ Not applicable Unit:Yuan Currency:RMB
Total working hours of labor outsourcing | |
Total remuneration paid for labor outsourcing | 26,126,382.48 |
Huzhou Branch of Proya Cosmetics Co., Ltd. signed theService Project ContractAgreementwith Jiangxi Zhilian Outsourcing Service Co., Ltd. in January 2017. Huzhou
Branch outsourced auxiliary services such as canteen, greening, cleaning, goods handling,loading and unloading and packaging to Jiangxi Zhilian Outsourcing Service Co., Ltd. andpaid remuneration according to the agreed business volume. As the Company adjusted itssales strategy, the number of urgent orders increased. In October 2019, in order to ensuretimely shipment and other purposes, Huzhou Branch signed theService Project ContractAgreementwith Yancheng Dafeng Xinxinyuan Enterprise Management Co., Ltd. Huzhou Branchoutsourced some work such as goods handling, loading and unloading, packaging and facialmask folding to Yancheng Dafeng Xinxinyuan Enterprise Management Co., Ltd. and paidremuneration according to the agreed business volume.
VII Others
□ Applicable√ Not applicable
Section IX Corporate GovernanceI Particulars on corporate governance
√ Applicable□ Not applicable
During the Reporting Period, the Company continuously improved its standard operationlevel and corporate governance structure based on the actual situation in accordance withthe provisions of theCompany Law,Securities Law,Share Listing Rules of Shanghai StockExchange,Code of Corporate Governance for Listed Companiesand other applicable lawsand regulations as well as theArticles of Association. The Company has set up the generalshareholders’ meeting, Board of Directors, Board of Supervisors and special committeesunder the Board of Directors as required, and developed the corresponding rules ofprocedure. It defines the duties and authorities, procedures and obligations of theinstitutions at all levels in terms of decision-making, supervision and implementation,so as to form a scientific and effective governance structure featuring clear rights andresponsibilities, mutual checks and balances and mutual coordination. During theReporting Period, the Company consciously fulfilled the obligation of informationdisclosure and managed investor relationship to continuously improve the standardoperation level. The corporate governance of the Company conforms to the normativedocuments published by China Securities Regulatory Commission in connection withgovernance of the listed company.
Whether there are significant differences between corporate governance and therequirements of the relevant regulations of the China Securities Regulatory Commission;if there are significant differences, the reasons should be explained
□ Applicable√ Not applicable
II Brief introduction to general shareholders’ meetings
Session number | Convening date | Query index of the designated website on which the resolution is published | Disclosure date when the resolution is published |
First extraordinary general shareholders’ meeting in 2020 | 20 March 2020 | No. 2020-010 Announcement on the website of Shanghai Stock Exchange (www.sse.com.cn) | 21 March 2020 |
2019 annual general | 22 April 2020 | No. 2020-024 | 23 April 2020 |
meeting | Announcement on the website of Shanghai Stock Exchange (www.sse.com.cn) | ||
Second extraordinary general shareholders’ meeting in 2020 | 6 July 2020 | No. 2020-035 Announcement on the website of Shanghai Stock Exchange (www.sse.com.cn) | 7 July 2020 |
Third extraordinary general shareholders’ meeting in 2020 | 28 October 2020 | No. 2020-055 Announcement on the website of Shanghai Stock Exchange (www.sse.com.cn) | 29 October 2020 |
Particulars on general shareholders’ meetings
□ Applicable√ Not applicable
III Performance of functions and duties by directors(I) Attendance of directors at board meetings and general shareholders’ meetings
Name of director | Independent director | Attendance at board meetings | Attendance at general shareholders’ meetings | |||||
Number of attendance required | Number of attendance in person | Number of attendance by communication | Number of attendance by proxy | Number of absence | Two consecutive absences in person | Number of attendance at general shareholders’ meetings | ||
Hou Juncheng | No | 7 | 7 | 0 | 0 | 0 | No | 4 |
Fang Yuyou | No | 7 | 7 | 1 | 0 | 0 | No | 4 |
Cao Liangguo | No | 7 | 7 | 0 | 0 | 0 | No | 4 |
Chu Xiuqi | Yes | 7 | 7 | 7 | 0 | 0 | No | 4 |
Chen Yan | Yes | 7 | 7 | 7 | 0 | 0 | No | 4 |
Particulars on two consecutive absences in person from board meetings
□ Applicable√ Not applicable
Number of board meetings held during the year | 7 |
Where: Number of on-site meeting | 0 |
by communication | 0 |
on site and by communication | 7 |
(II) Independent directors' objections to the Company's related matters
□ Applicable√ Not applicable
(III) Others
□ Applicable√ Not applicable
IV If there is any objection to important opinions and suggestions put forward by thespecial committees under the Board of Directors in performing its functions andduties during the Reporting Period, the specific situation should be disclosed
□ Applicable√ Not applicable
V Particulars on risks in the Company identified by the Board of Supervisors
□ Applicable√ Not applicable
VI Particulars on the situations that the Company and its controlling shareholderscannot guarantee independence and cannot maintain self-operation ability in theaspects of business, personnel, assets, organization and finance
□ Applicable√ Not applicable
The corresponding solutions, work progress and follow-up work plan of the Company in caseof horizontal competition
□ Applicable√ Not applicable
VII Establishment and implementation of appraisal mechanism and the incentive
mechanism for senior management during the Reporting Period
√ Applicable□ Not applicable
During the Reporting Period, the appraisal of General Manager and other seniormanagement of the Company was conducted based on the performance indicator requirements,and the annual performance remuneration was submitted, by Remuneration and AppraisalCommittee of the Board of Directors, to the Board of Directors for review.
VIII Whether to disclose the self-appraisal report on internal control
√ Applicable□ Not applicable
See2020 Appraisal Report on Internal Controldisclosed by the Company on the websiteof Shanghai Stock Exchange (www.sse.com.cn) on the same day for details
Particulars on major defects in the internal control during the Reporting Period
□ Applicable√ Not applicable
IX Particulars on the audit report on internal control
√ Applicable□ Not applicable
During the Reporting Period, Pan-China Certified Public Accountants LLP, the internalcontrol audit organization of the Company, issued theAudit Report on Internal Control
(TJS [2021] No.[3599]), and believed that the Company maintained effective internal
control related to financial reports in all major aspects in accordance with theGeneralGuidelines on Enterprise Internal ControlSystem and relevant provisions on 31 December2020.Whether to disclose the Audit Report on Internal Control: YesOpinion types of the Audit Report on Internal Control: Standard and unqualified opinions
X Others
□ Applicable√ Not applicable
Section X Corporate Bonds
□ Applicable√ Not applicable
Section XI Financial Report
I Auditor’s Report
√ Applicable□ Not applicable
Auditor’s ReportTJS [2021] No. 3598
To the shareholders of Proya Cosmetics Co., Ltd.:
I. Audits’ opinion
We have audited the accompanying financial statements of Proya Cosmetics Co., Ltd.(hereinafter referred to as “Proya”), which comprise the consolidated and parentcompany’s balance sheets as at 31 December 2020, the consolidated and parent company’sincome statements, the consolidated and parent company’s cash flow statements, and theconsolidated and parent company’s statements of changes in owners’ equity for the yearof 2020, as well as notes to financial statements.
In our opinion, the attached financial statements are prepared in accordance withthe provisions of the Accounting Standards for Business Enterprises in all major aspects,and fairly reflect Proya's consolidated and parent company's financial position as at31 December 2020, as well as the consolidated and parent company's operating results andcash flows in 2020.II. Basis of auditors’ opinion
We have conducted our audit in accordance with the Chinese Auditing Standards forCertified Public Accountants. The “Responsibilities of Certified Public Accountants forAuditing of Financial Statements” in the auditor’s report further illustrate ourresponsibilities under those standards. In accordance with the Code of ProfessionalEthics of Chinese Certified Public Accountants, we are independent of Proya and haveperformed other responsibilities in respect of professional ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.III. Key audit matters
Key audit matters are those matters that, in our professional judgment, were of mostsignificance in our audit of the financial statements for the current period. These
matters were addressed in the context of our audit of the financial statements as a wholeand, in forming our opinion thereon, we do not provide a separate opinion on these matters.(I) Revenue recognition
1. Item description
Refer to V.38, VII.61 and XVI.6 in “Section XI Financial Report” herein for relevantinformation disclosure.The operating revenue of Proya mainly came from the sale of cosmetics. According tothe financial statements, the operating revenue of Proya was RMB 3,752,386,800 in 2020.Pursuant to the sales contract between Proya and its customer, under the distributionmode, Proya recognizes the sales revenue after the its product delivery to the purchaserand acceptance by the purchaser; under the proxy mode, Proya delivers the products tothe trustee and recognizes the sales revenue when the trustee achieves sales and issuesthe proxy list; under the direct sales mode, Proya delivers the products to the consumerand recognizes the sales revenue after the consumer confirms the receipt and makes thepayment.
Operating revenue is one of the key performance indicators of Proya, so there is aninherent risk that the management of Proya (hereinafter referred to as the “management”)achieves specific goals or expectations through inappropriate revenue recognition.Therefore, we identify the revenue recognition as a key audit matter.
2. Audit response
Our main audit procedures for revenue recognition include the followings:
(1) Understand the key internal controls related to the revenue recognition, evaluatethe design of these controls, determine the feasibility, and test the effectiveness ofthe relevant internal controls;
(2) Send letter to the main customers to confirm the sales volume in 2020 and thebalance of accounts receivable at the end of 2020;
(3) Perform the test of details, carry out spot check over the supporting documentsfor revenue recognition (including sales contract, delivery document, receipt, proxy list,sales invoice, etc.), in order to understand major contract terms or conditions, evaluatewhether the revenue recognition method is appropriate, and check the recovery of accountsreceivable;
(4) Implement analysis procedures, including monthly income fluctuation analysis in2020 and sales revenue change analysis of main customers;
(5) Obtain the rebate and subsidy policy, rebate and subsidy calculation sheet andother information to check whether the withholding amount of rebate and subsidy at theend of 2020 was sufficient; and meanwhile, analyze whether the amount of rebate and subsidyand the withholding amount were reasonable based on the rebate and subsidy policy as wellas the income in 2020; check the settlement after rebate and subsidy withholding periodat the end of 2020;
(6) Obtain the return and exchange policy, estimated balance sheet and otherinformation, and check whether the estimated future return and exchange rate wasreasonable; check the return and exchange situation after the period, and compare withthe estimated return and exchange data;
(7) Understand the inventory and stock age of the dealer at the end of 2020, and check
whether the inventory amount and structure of the deal were reasonable;
(8) Analyze the sales data of main online direct stores, calculate the consumptionper capita, consumption per time, purchase times and repurchase information of customersof direct online stores to compare with the selling price and normal consumption of Proyaproducts, judge the rationality of the above data in combination with normal consumptionhabits, and analyze the authenticity and rationality of the income of direct onlinestores;
(9) Compare the background transaction data, Alipay receipts data and sales revenuedata on financial accounts of direct online stores, analyze the matching attribute ofdata, and check the authenticity of sales from the direct online stores.
(II) Inventory falling price reserve
1. Item description
Refer to V.15 and VII.9 in “Section XI Financial Report” herein for relevantinformation disclosure.
As at 31 December 2020, the book balance of inventory of Proya amounted to RMB494,268,000, inventory falling price reserve amounted to RMB 25,627,000, and the carryingvalue of inventory amounted to RMB 468,641,000. Proya measures inventories on the basisof the lower one between the cost and net realizable value, and the inventory fallingprice reserve is withdrawn in accordance with the difference between the single inventorycost and the net realizable value. The management needs to estimate the net realizablevalue of inventories and make provision for inventory falling price reserve. Therefore,we identify this item as a key audit matter.
2. Audit response
Our main audit procedures for inventory falling price reserve include the followings:
(1) Understand the key internal controls related to the provision for inventoryfalling price reserve, evaluate the design of these controls, determine the feasibility,and test the effectiveness of the relevant internal controls;
(2) Obtain the provision policy for inventory falling price reserve and calculationprocess prepared by Proya, and recheck the calculation process;
(3) Obtain the inventory stock age sheet, and check whether provision for inventoryfalling price reserve was sufficient in combination with the inventory stock age, shelflife and post-period inventory sales;
(4) Obtain a list of products that are no longer for sale, make statistics about theinventory of offline products and the corresponding raw materials, and pay attention towhether this part of the inventory made provision for inventory falling price reserve;
(5) Monitor the inventory, check the quantity and condition of the inventory, andpay attention to whether the inventory with signs of impairment made provision for fallingprice reserve.IV. Other information
The management is responsible for the other information, which comprises all theinformation covered in the Annual Report other than the financial statements and thisauditor’s report.
Our audit opinion on the financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In conjunction with our audit to the financial statements, our responsibility is toread the other information. During the process, we considered whether there is materialinconsistency or there is likely material misstatement between the other information andthe financial statements or the information we obtained during the audit.
As we have performed the work on the other information obtained before the date ofour auditor’s report, we shall report if we confirmed there was a material misstatementamong the other information. We have nothing needed to be reported on this case.
V. Responsibilities of the management and governing bodies for the financial statements
The management shall be responsible for the preparation of financial statements inaccordance with the Accounting Standards for Business Enterprises to enable them to befairly reflected, and to design, implement and maintain the necessary internal controls
so that there is no material misstatement due to fraud or error in the financialstatements.
In the preparation of the financial statements, the management is responsible forassessing Proya’s continuous operating capacity, disclosing matters relating tocontinuous operations (if applicable), and applying the continuing operating assumptionsunless the management plans to perform liquidation, cease operation or otherwise has norealistic choice.
The governing bodies of Proya (hereinafter referred to as “governing bodies”) areresponsible for overseeing the financial reporting process of Proya.VI. Responsibilities of CPA for the audit of the financial statements
Our objective is to obtain reasonable assurance of the financial statements as a wholewhether there is a material misstatement due to fraud or error and to issue an auditor’sreport containing audit opinion. Reasonable assurance is a high level of assurance, butis not a guarantee that an audit conducted in accordance with China Standards on Auditingwill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with the auditing standards, we exercisedprofessional judgment and maintained professional skepticism throughout the audit. Wealso performed the following works:
(I) to identify and assess the risks of material misstatement of the financialstatements, whether due to fraud or error; design and perform audit procedures responsiveto those risks; and obtain audit evidence that is sufficient and appropriate to providea basis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override of internal control.
(II) to understand the internal control related to the audit to design the appropriateaudit procedures.
(III) to evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.
(IV) to draw a conclusion on the appropriateness of the management’s use of the goingconcern basis of accounting, and, based on the audit evidence obtained, whether a materialuncertainty exists related to events or conditions that may cast significant doubt on
the ability of Proya to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditor’s report to therelated disclosures in the financial statements or, if such disclosures are inadequate,to modify our opinion. Our conclusions are based on the audit evidence obtained up tothe date of our auditor’s report. However, future events or conditions may cause Proyato cease to continue as a going concern.(V) to evaluate the overall presentation, structure and content of the financialstatements, and to assess whether the financial statements reflect the relatedtransactions and events fairly.(VI) to obtain sufficient and appropriate audit evidence of the financial informationof the entity or business activity of the Proya in order to express an opinion on thefinancial statements. We are responsible for directing, supervising and performing groupaudits. We take full responsibility for the audit opinion.We communicated with the governing bodies regarding, among other matters, the plannedscope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during the audit.We also provided a statement to management on compliance with ethical requirementsrelated to independence, and communicated with governing bodies about all relationshipsand other matters that may be reasonably considered to affect our independence, as wellas related precautions (if applicable).From the matters we had discussed with the governing bodies, we confirmed whichmatters were most important to the audit of the financial statements for the current periodand thus constituted the key audit matters. We set out these matters in the auditor’sreport. Unless the disclosure of these matters are forbidden by the laws and regulations,or, in rare cases, if it is reasonably expected that the negative impacts caused bydiscussing certain matters in the auditor’s report would be larger than the benefitsfor public interest, we shall not disclose the matters in the auditor’s report undersuch circumstances.
Pan-China Certified Public Accountants LLP Certified Public Accountant:
(Project Partner)
Hangzhou, China Certified Public Accountant:
21 April 2021
II Financial Statements
Consolidated Balance Sheet31 December 2020Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB
Item | Notes | 31 December 2020 | 31 December 2019 |
Current assets: | |||
Cash and equivalents | VII. 1 | 1,416,654,640.93 | 1,246,901,218.99 |
Transaction settlement funds | |||
Lending funds | |||
Held-for-trading financial assets | VII. 2 | 71,450,000.00 | |
Derivative financial assets | |||
Bills receivable | |||
Accounts receivable | VII. 5 | 284,878,419.58 | 198,409,249.19 |
Receivables financing | VII. 6 | 5,531,997.32 | 2,150,000.00 |
Prepayment | VII. 7 | 82,742,815.92 | 53,313,963.76 |
Premium receivable | |||
Reinsurance premium receivable | |||
Reserves for reinsurance contract receivable | |||
Other receivables | VII. 8 | 48,733,527.35 | 15,269,949.97 |
Where: Interest receivable | |||
Dividend receivable | |||
Financial assets purchased under agreements to resell | |||
Inventories | VII. 9 | 468,641,017.75 | 313,649,003.07 |
Contract assets | |||
Held for sale assets | |||
Non-current assets due within one year | |||
Other current assets | VII. 13 | 35,235,811.27 | 11,723,268.59 |
Total current assets | 2,342,418,230.12 | 1,912,866,653.57 | |
Non-current assets: | |||
Loans and advances to customers | |||
Debt investment | |||
Other debt investment | |||
Long-term receivables | |||
Long-term equity investments | VII. 17 | 58,220,059.60 | 14,728,003.68 |
Investments in other equity instruments | VII. 18 | 20,580,000.00 | |
Other non-current financial assets | |||
Investment real estate | VII. 20 | 72,237,610.10 | 71,622,083.18 |
Fixed assets | VII. 21 | 565,864,152.62 | 550,329,145.07 |
Construction in progress | VII. 22 | 47,324,523.36 | 31,894,658.49 |
Productive biological assets | |||
Oil and gas assets | |||
Right-of-use assets | |||
Intangible assets | VII. 26 | 314,643,323.97 | 328,564,563.33 |
Development expenses | |||
Goodwill | VII. 28 | 31,034,161.20 | |
Long-term prepaid expenses | VII. 29 | 50,576,793.53 | 26,378,564.50 |
Deferred income tax assets | VII. 30 | 46,660,550.76 | 27,975,258.51 |
Other non-current assets | VII. 31 | 87,322,780.03 | 15,006,146.49 |
Total non-current assets | 1,294,463,955.17 | 1,066,498,423.25 | |
Total assets | 3,636,882,185.29 | 2,979,365,076.82 | |
Current liabilities: | |||
Short-term borrowings | VII. 32 | 299,280,435.09 | 129,047,396.51 |
Borrowings from central bank | |||
Placements from banks and other financial institutions | |||
Held-for-trading financial liabilities | |||
Derivative financial liabilities | |||
Bills payable | VII. 35 | 64,580,000.00 | 41,830,948.53 |
Accounts payable | VII. 36 | 515,832,031.27 | 347,316,843.39 |
Accounts received in advance | VII. 37 | 40,913,490.55 | |
Contract liabilities | VII. 38 | 30,618,778.99 | |
Financial assets sold under repurchase agreements | |||
Deposits from customers and other banks | |||
Brokerage for trading securities | |||
Brokerage for underwriting securities | |||
Employee benefits payable | VII. 39 | 70,828,239.70 | 66,684,151.98 |
Taxes payable | VII. 40 | 71,335,290.77 | 71,833,700.61 |
Other payables | VII. 41 | 75,546,323.32 | 91,444,673.31 |
Where: Interest payable | |||
Dividend payable | |||
Fees and commissions payable | |||
Reinsured accounts payable | |||
Held-for-sale liabilities | |||
Non-current liabilities due within one year | VII. 43 | 85,258,247.69 | |
Other current liabilities | VII. 44 | 1,439,262.02 | |
Total current liabilities | 1,129,460,361.16 | 874,329,452.57 | |
Non-current liabilities: | |||
Reserves for insurance contracts | |||
Long-term borrowings | |||
Bonds payable | |||
Where: Preference shares | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term payables | |||
Long-term employee benefits payable | |||
Estimated liabilities | VII. 50 | 10,190,099.22 | 10,102,532.74 |
Deferred income | VII. 51 | 8,495,353.33 | 19,743,036.56 |
Deferred income tax liabilities | VII. 30 | 6,874,105.45 | 5,132,011.38 |
Other non-current liabilities | |||
Total non-current liabilities | 25,559,558.00 | 34,977,580.68 | |
Total liabilities | 1,155,019,919.16 | 909,307,033.25 | |
Owner’s equity (or shareholders’ equity): | |||
Share capital | VII. 53 | 201,116,925.00 | 201,269,560.00 |
Other equity instruments | |||
Where: Preference shares | |||
Perpetual bonds | |||
Capital reserve | VII. 55 | 837,034,836.69 | 835,353,615.48 |
Less: Treasury shares | VII. 56 | 12,653,905.25 | 15,769,051.20 |
Other comprehensive income | VII. 57 | -269,066.13 | -212,628.22 |
Special reserve | |||
Surplus reserve | VII. 59 | 100,634,780.00 | 100,634,780.00 |
General risk provision | |||
Undistributed profit | VII. 60 | 1,265,671,865.63 | 908,411,607.62 |
Total equity attributable to the owners of the parent company | 2,391,535,435.94 | 2,029,687,883.68 | |
Minority equity | 90,326,830.19 | 40,370,159.89 | |
Total owners’ equity (or shareholders’ equity) | 2,481,862,266.13 | 2,070,058,043.57 | |
Total liabilities and owner's equity (or shareholders’ equity) | 3,636,882,185.29 | 2,979,365,076.82 |
Legal Representative: Hou Juncheng CFO of the Company: Wang Li Head of the publicaccountant: Wang Li
Balance Sheet of Parent Company
31 December 2020Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB
Item | Notes | 31 December 2020 | 31 December 2019 |
Current assets: | |||
Cash and equivalents | 498,358,108.55 | 403,072,398.35 | |
Held-for-trading financial assets | 70,000,000.00 | ||
Derivative financial assets | |||
Bills receivable | |||
Accounts receivable | XVII. 1 | 565,037,411.15 | 614,081,454.90 |
Receivables financing | |||
Prepayment | 9,389,481.27 | 13,257,712.52 | |
Other receivables | XVII. 2 | 236,585,409.48 | 31,800,093.90 |
Where: Interest receivable | |||
Dividend receivable | |||
Inventories | 227,126,018.70 | 157,614,679.78 | |
Contract assets | |||
Held for sale assets | |||
Non-current assets due within one year | |||
Other current assets | 15,543,206.01 | ||
Total current assets | 1,552,039,635.16 | 1,289,826,339.45 | |
Non-current assets: | |||
Debt investment | |||
Other debt investment | |||
Long-term receivables | |||
Long-term equity | XVII. 3 | 347,372,956.06 | 159,882,467.38 |
investments | |||
Investments in other equity instruments | 20,580,000.00 | ||
Other non-current financial assets | |||
Investment real estate | 339,018,465.70 | 336,462,349.68 | |
Fixed assets | 291,193,420.67 | 283,156,520.47 | |
Construction in progress | 46,993,562.96 | 31,877,256.59 | |
Productive biological assets | |||
Oil and gas assets | |||
Right-of-use assets | |||
Intangible assets | 308,401,627.24 | 318,477,880.56 | |
Development expenses | |||
Goodwill | |||
Long-term prepaid expenses | 34,817,495.54 | 1,177,831.47 | |
Deferred income tax assets | 15,889,636.90 | 18,414,499.56 | |
Other non-current assets | 87,545,799.42 | 15,006,146.49 | |
Total non-current assets | 1,491,812,964.49 | 1,164,454,952.20 | |
Total assets | 3,043,852,599.65 | 2,454,281,291.65 | |
Current liabilities: | |||
Short-term borrowings | 200,163,972.59 | ||
Held-for-trading financial liabilities | |||
Derivative financial liabilities | |||
Bills payable | 64,580,000.00 | 41,830,948.53 | |
Accounts payable | 403,605,887.84 | 300,820,130.33 | |
Accounts received in advance | 13,628,235.50 | ||
Contract liabilities | 10,212,194.96 | ||
Employee benefits payable | 29,624,549.78 | 23,436,531.67 | |
Taxes payable | 34,953,057.88 | 49,102,562.13 | |
Other payables | 24,771,086.23 | 27,706,157.37 | |
Where: Interest payable | |||
Dividend payable | |||
Held-for-sale liabilities | |||
Non-current liabilities due within one year | 85,258,247.69 | ||
Other current liabilities | |||
Total current liabilities | 767,910,749.28 | 541,782,813.22 |
Non-current liabilities: | |||
Long-term borrowings | |||
Bonds payable | |||
Where: Preference shares | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term payables | |||
Long-term employee benefits payable | |||
Estimated liabilities | |||
Deferred income | 8,495,353.33 | 8,491,110.00 | |
Deferred income tax liabilities | 6,283,428.68 | 4,986,605.71 | |
Other non-current liabilities | |||
Total non-current liabilities | 14,778,782.01 | 13,477,715.71 | |
Total liabilities | 782,689,531.29 | 555,260,528.93 | |
Owner’s equity (or shareholders’ equity): | |||
Share capital | 201,116,925.00 | 201,269,560.00 | |
Other equity instruments | |||
Where: Preference shares | |||
Perpetual bonds | |||
Capital reserve | 837,075,425.32 | 834,592,133.74 | |
Less: Treasury shares | 12,653,905.25 | 15,769,051.20 | |
Other comprehensive income | |||
Special reserve | |||
Surplus reserve | 100,634,780.00 | 100,634,780.00 | |
Undistributed profit | 1,134,989,843.29 | 778,293,340.18 | |
Total owners’ equity (or shareholders’ equity) | 2,261,163,068.36 | 1,899,020,762.72 | |
Total liabilities and owner's equity (or shareholders’ equity) | 3,043,852,599.65 | 2,454,281,291.65 |
Legal Representative: Hou Juncheng CFO of the Company: Wang Li Head of the publicaccountant: Wang Li
Consolidated Income Statement
January - December 2020
Unit: Yuan Currency: RMB
Item | Notes | 2020 | 2019 |
I. Total operating income | 3,752,386,849.02 | 3,123,520,211.77 | |
Where: Revenue | VII. 61 | 3,752,386,849.02 | 3,123,520,211.77 |
Interest income |
Premium received | |||
Handling fee and commission income | |||
II. Total operating costs | 3,160,438,371.03 | 2,636,811,936.85 | |
Where: Cost of sales | VII. 61 | 1,367,561,949.78 | 1,125,573,226.23 |
Interest expenses | |||
Handling fee and commission expenses | |||
Payment on surrenders | |||
Net compensation expenses | |||
Net provision drawn for insurance contract | |||
Policy dividend expenses | |||
Reinsurance expenses | |||
Taxes and surcharges | VII. 62 | 32,945,185.99 | 27,839,165.28 |
Selling expenses | VII. 63 | 1,497,058,943.34 | 1,223,031,824.07 |
Administrative expenses | VII. 64 | 204,279,378.68 | 195,259,927.02 |
R&D expenses | VII. 65 | 72,200,028.77 | 74,602,606.55 |
Financial expenses | VII. 66 | -13,607,115.53 | -9,494,812.30 |
Where: Interest expense | 9,190,674.26 | 8,565,736.81 | |
Interest income | 20,740,463.77 | 18,108,947.26 | |
Add: Other income | VII. 67 | 13,491,509.72 | 8,415,457.68 |
Income from investment (“-” refers to loss) | VII. 68 | 1,769,391.50 | 2,123,024.87 |
Where: Investment income from associates and joint ventures | -646,615.60 | -2,530,337.96 | |
Derecognition of income from financial assets at amortized cost | |||
Exchange gains (“-” refers to loss) | |||
Net gain on exposure hedging (“-” refers to loss) | |||
Gain on change in fair value (“-” refers to loss) | |||
Losses on credit impairment (“-” refers to loss) | VII. 71 | -23,908,722.39 | -8,542,539.16 |
Losses on assets impairment (“-” refers to loss) | VII. 72 | -28,234,605.50 | -27,139,408.88 |
Gains from asset disposal (“-” refers to loss) | VII. 73 | 854.57 | 43,245.67 |
III. Operating profits (“-” refers to loss) | 555,066,905.89 | 461,608,055.10 | |
Add: Non-operating profits | VII. 74 | 1,542,594.25 | 778,978.15 |
Less: Non-operating expenses | VII. 75 | 9,037,929.71 | 6,144,076.84 |
IV. Total profits (“-” refers to total loss) | 547,571,570.43 | 456,242,956.41 | |
Less: Income tax expenses | VII. 76 | 95,962,016.20 | 89,874,756.94 |
V. Net profits (“-” refers to net loss) | 451,609,554.23 | 366,368,199.47 | |
(I) Classified by operation continuity | |||
1. Net profits from continuing activities (“-” refers to net loss) | 451,609,554.23 | 366,368,199.47 | |
2. Net profits from discontinuing activities (“-” refers to net loss) | |||
(II) Classified by ownership | |||
1. Net profits attributable to shareholders of the parent company (“-” refers to net loss) | 476,009,298.41 | 392,681,976.58 | |
2. Profit or loss attributable to minority shareholders (“-” refers to net loss) | -24,399,744.18 | -26,313,777.11 | |
VI. Net amount of other comprehensive income after tax | VII. 77 | -56,437.91 | 117,952.25 |
(I) Net amount of other comprehensive income after tax attributable to owners of the parent company | -56,437.91 | 117,952.25 | |
1. Other comprehensive income not to be reclassified into profit or loss | |||
(1) Change in re-measurement of defined benefit plans | |||
(2) Other comprehensive income that may not be reclassified to profit or loss under equity method | |||
(3) Change in fair value of investments in other equity instruments | |||
(4) Change in fair value of enterprise's own credit risk | |||
2. Other comprehensive income to be reclassified into profit or loss | -56,437.91 | 117,952.25 | |
(1) Other comprehensive income that may be reclassified to profit or loss under equity method | |||
(2) Change in fair value of other debt investments | |||
(3) Amount included in other comprehensive income on reclassification of financial |
assets | |||
(4) Credit impairment provisions of other debt investments | |||
(5) Cash flow hedging reserve | |||
(6) Exchange differences from translation of financial statements | -56,437.91 | 117,952.25 | |
(7) Others | |||
(II) Net amount of other comprehensive income after tax attributable to minority shareholders | |||
VII. Total comprehensive income | 451,553,116.32 | 366,486,151.72 | |
(I) Total comprehensive income attributable to owners of the parent company | 475,952,860.50 | 392,799,928.83 | |
(II) Total comprehensive income attributable to minority shareholders | -24,399,744.18 | -26,313,777.11 | |
VIII. Earnings per share: | |||
(I) Basic earnings per share (Yuan/share) | 2.37 | 1.96 | |
(II) Diluted earnings per share (Yuan/share) | 2.37 | 1.96 |
In case of business merger under common control, net profit realized by the acquiree beforethe merger in the current period was: RMB 0; net profit realized by the acquiree in theprior period was: RMB 0.Legal Representative: Hou Juncheng CFO of the Company: Wang Li Head of the publicaccountant: Wang Li
Income Statement of Parent Company
January - December 2020
Unit: Yuan Currency: RMB
Item | Notes | 2020 | 2019 |
I. Revenue | XVII. 4 | 1,950,969,218.93 | 1,770,795,873.74 |
Less: Cost of sales | XVII. 4 | 918,617,344.96 | 870,410,762.03 |
Taxes and surcharges | 17,071,963.70 | 17,659,284.56 | |
Selling expenses | 208,262,239.67 | 190,509,676.67 | |
Administrative expenses | 144,076,974.98 | 145,490,559.40 | |
R&D expenses | 77,218,796.44 | 79,845,015.25 | |
Financial expenses | -7,606,803.28 | -3,225,179.42 | |
Where: Interest expense | 5,563,830.24 | 7,093,653.17 | |
Interest income | 19,588,179.32 | 10,371,466.14 | |
Add: Other income | 9,703,059.04 | 7,156,047.42 | |
Income from investment (“-” refers to loss) | XVII. 5 | 1,039,199.20 | 1,784,206.96 |
Where: Investment income from associates and joint ventures | -1,112,228.47 | -2,869,155.87 | |
Derecognition of income from financial assets at amortized cost | |||
Net gain on exposure hedging (“-” refers to loss) | |||
Gain on change in fair value (“-” refers to loss) | |||
Losses on credit impairment (“-” refers to loss) | -30,085,608.30 | -56,884,503.83 | |
Losses on assets impairment (“-” refers to loss) | -11,111,698.11 | -12,656,887.41 | |
Gains from asset disposal (“-” refers to loss) | -3,727.50 | 43,245.67 | |
II. Operating profits (“-” refers to loss) | 562,869,926.79 | 409,547,864.06 | |
Add: Non-operating profits | 783,184.91 | 29,722.00 | |
Less: Non-operating expenses | 8,378,795.22 | 4,974,545.09 | |
III. Total profits (“-” refers to total loss) | 555,274,316.48 | 404,603,040.97 | |
Less: Income tax expenses | 79,828,772.97 | 61,812,795.82 | |
IV. Net profits (“-” refers to net loss) | 475,445,543.51 | 342,790,245.15 | |
(I) Net profits from continuing activities (“-” refers to net loss) | 475,445,543.51 | 342,790,245.15 | |
(II) Net profits from discontinuing activities (“-” refers to net loss) | |||
V. Net amount of other comprehensive income after tax | |||
(I) Other comprehensive income not to be reclassified into profit or loss | |||
1. Change in re-measurement of defined benefit plans | |||
2. Other comprehensive income that may not be reclassified to profit or loss under equity method | |||
3. Change in fair value of investments in other equity instruments | |||
4. Change in fair value of enterprise's own credit risk | |||
(II) Other comprehensive income to be reclassified into profit or loss |
1. Other comprehensive income that may be reclassified to profit or loss under equity method | |||
2. Change in fair value of other debt investments | |||
3. Amount included in other comprehensive income on reclassification of financial assets | |||
4. Credit impairment provisions of other debt investments | |||
5. Cash flow hedging reserve | |||
6. Exchange differences from translation of financial statements | |||
7. Others | |||
VI. Total comprehensive income | 475,445,543.51 | 342,790,245.15 | |
VII. Earnings per share: | |||
(I) Basic earnings per share (Yuan/share) | |||
(II) Diluted earnings per share (Yuan/share) |
Legal Representative: Hou Juncheng CFO of the Company: Wang Li Head of the publicaccountant: Wang Li
Consolidated Cash Flow Statement
January - December 2020
Unit: Yuan Currency: RMB
Item | Notes | 2020 | 2019 |
I. Cash flow from operating activities: | |||
Cash received from sales of goods or rendering of services | 3,884,361,008.59 | 3,156,670,977.79 | |
Net increase in customer and interbank deposits | |||
Net increase in borrowings from central bank | |||
Net increase in placements from banks and other financial institutions | |||
Cash received from premiums under original insurance contract | |||
Net cash received from reinsurance business | |||
Net increase in deposits of |
policy holders and investments | |||
Cash received from interest, fees and commissions | |||
Net increase in borrowings | |||
Net increase in repurchase business capital | |||
Net cash received from securities trading agency services | |||
Tax rebates | 1,344,632.09 | 1,215,639.09 | |
Other cash received from operating activities | VII. 78(1) | 81,739,953.02 | 27,439,741.01 |
Sub-total of cash inflows from operating activities | 3,967,445,593.70 | 3,185,326,357.89 | |
Cash paid for goods and services | 1,455,030,507.05 | 1,283,742,313.97 | |
Net increase in customer loans and advances | |||
Net increase in deposits with PBOC and interbank deposits | |||
Cash paid for compensation payments under original insurance contract | |||
Net increase in funds for lending | |||
Cash paid for interests, handling charges and commissions | |||
Cash paid for policy dividends | |||
Cash paid to and on behalf of employees | 376,790,463.82 | 366,291,357.36 | |
Taxes and fees paid | 381,109,475.93 | 359,884,531.17 | |
Cash paid for other operating activities | VII. 78(2) | 1,422,965,037.76 | 939,446,827.05 |
Sub-total of cash outflows from operating activities | 3,635,895,484.56 | 2,949,365,029.55 | |
Net cash flow generated from operating activities | 331,550,109.14 | 235,961,328.34 | |
II. Cash flow from investing activities: | |||
Cash received from disposal of investments | 213,200,000.00 | 380,000,000.00 | |
Cash received from returns on investments | 2,266,301.37 | 4,653,362.83 | |
Net cash received from | 37,500.00 | 72,000.00 |
disposal of fixed assets, intangible assets and other long-term assets | |||
Net cash received from disposal of subsidiaries and other operating entities | |||
Other cash received relating to investing activities | VII. 78(3) | 66,052,759.40 | 2,500,000.00 |
Sub-total of cash inflows from investing activities | 281,556,560.77 | 387,225,362.83 | |
Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets | 184,057,255.67 | 163,733,333.52 | |
Cash paid for investment | 81,930,000.00 | 275,588,295.00 | |
Net increase in pledged loans | |||
Net cash paid for acquiring subsidiaries and other operating entities | |||
Other cash paid relating to investing activities | VII. 78(4) | 1,035,148.02 | 2,500,000.00 |
Sub-total of cash outflows from investing activities | 267,022,403.69 | 441,821,628.52 | |
Net cash flow generated from investing activities | 14,534,157.08 | -54,596,265.69 | |
III. Cash flow from financing activities: | |||
Proceeds received from financing activities | 2,266,300.00 | 21,085,273.44 | |
Where: Cash received by subsidiaries from minority shareholders’ investment | 2,266,300.00 | 21,085,273.44 | |
Cash received from borrowings | 299,000,000.00 | 128,939,749.33 | |
Other cash received from financing-related activities | |||
Sub-total of cash inflows from financing activities | 301,266,300.00 | 150,025,022.77 | |
Cash repayments of borrowings | 214,230,868.48 | 259,800,000.00 | |
Dividends paid, profit distributed or interest paid | 127,734,055.29 | 97,824,202.19 | |
Where: Dividend and profit paid by subsidiaries to minority shareholders | |||
Other cash paid for financing-related activities | VII. 78(6) | 2,684,110.55 | 1,657,699.80 |
Sub-total of cash outflows from financing activities | 344,649,034.32 | 359,281,901.99 | |
Net cash flow from financing activities | -43,382,734.32 | -209,256,879.22 | |
IV. Effects of exchange rate fluctuations on cash and cash equivalents | 56,437.91 | 117,952.25 | |
V. Net increase in cash and cash equivalents | 302,757,969.81 | -27,773,864.32 | |
Add: Cash and cash equivalents at the beginning of the period | 1,099,092,785.07 | 1,126,866,649.39 | |
VI. Cash and cash equivalents at the end of the period | 1,401,850,754.88 | 1,099,092,785.07 |
Legal Representative: Hou Juncheng CFO of the Company: Wang Li Head of the publicaccountant: Wang Li
Cash Flow Statement of Parent Company
January - December 2020
Unit: Yuan Currency: RMB
Item | Notes | 2020 | 2019 |
I. Cash flow from operating activities: | |||
Cash received from sales of goods or rendering of services | 2,223,396,958.25 | 1,818,365,238.11 | |
Tax rebates | 8,126.42 | ||
Other cash received from operating activities | 20,551,684.95 | 10,032,566.19 | |
Sub-total of cash inflows from operating activities | 2,243,948,643.20 | 1,828,405,930.72 | |
Cash paid for goods and services | 922,769,531.45 | 900,766,094.66 | |
Cash paid to and on behalf of employees | 142,663,372.92 | 116,744,546.33 | |
Taxes and fees paid | 226,100,654.30 | 215,181,333.30 | |
Cash paid for other operating activities | 332,949,353.49 | 280,174,037.91 | |
Sub-total of cash outflows from operating activities | 1,624,482,912.16 | 1,512,866,012.20 | |
Net cash flow generated from operating activities | 619,465,731.04 | 315,539,918.52 | |
II. Cash flow from investing activities: | |||
Cash received from disposal of investments | 211,750,000.00 | 230,000,000.00 |
Cash received from returns on investments | 2,266,301.37 | 4,653,362.83 | |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 5,000.00 | 72,000.00 | |
Net cash received from disposal of subsidiaries and other operating entities | |||
Other cash received relating to investing activities | 1,000,000.00 | 2,500,000.00 | |
Sub-total of cash inflows from investing activities | 215,021,301.37 | 237,225,362.83 | |
Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets | 174,825,452.05 | 139,077,372.86 | |
Cash paid for investment | 200,190,000.00 | 353,787,528.61 | |
Net cash paid for acquiring subsidiaries and other operating entities | |||
Other cash paid relating to investing activities | 219,330,066.00 | 9,500,000.00 | |
Sub-total of cash outflows from investing activities | 594,345,518.05 | 502,364,901.47 | |
Net cash flow generated from investing activities | -379,324,216.68 | -265,139,538.64 | |
III. Cash flow from financing activities: | |||
Proceeds received from financing activities | |||
Cash received from borrowings | 200,000,000.00 | ||
Other cash received from financing-related activities | |||
Sub-total of cash inflows from financing activities | 200,000,000.00 | ||
Cash repayments of borrowings | 85,130,289.87 | 199,800,000.00 | |
Dividends paid, profit distributed or interest paid | 124,276,855.87 | 96,380,324.63 | |
Other cash paid for financing-related activities | 2,584,110.55 | 1,657,699.80 | |
Sub-total of cash outflows from financing activities | 211,991,256.29 | 297,838,024.43 | |
Net cash flow from financing activities | -11,991,256.29 | -297,838,024.43 |
IV. Effects of exchange rate fluctuations on cash and cash equivalents | |||
V. Net increase in cash and cash equivalents | 228,150,258.07 | -247,437,644.55 | |
Add: Cash and cash equivalents at the beginning of the period | 255,868,964.43 | 503,306,608.98 | |
VI. Cash and cash equivalents at the end of the period | 484,019,222.50 | 255,868,964.43 |
Legal Representative: Hou Juncheng CFO of the Company: Wang Li Head of the publicaccountant: Wang Li
Consolidated Statements of Changes in Owners’ Equity
January - December 2020
Unit: Yuan Currency: RMB
Item | 2020 | ||||||||||||||
Equity attributable to owners of the parent company | Minority equity | Total equity attributable to owners | |||||||||||||
Paid-up capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk provision | Undistributed profit | Others | Sub-total | |||||
Preference shares | Perpetual bonds | Others | |||||||||||||
I. Balance at the end of last year | 201,269,560.00 | 835,353,615.48 | 15,769,051.20 | -212,628.22 | 100,634,780.00 | 908,411,607.62 | 2,029,687,883.68 | 40,370,159.89 | 2,070,058,043.57 | ||||||
Add: Changes in accounting policies | |||||||||||||||
Correction for previous errors | |||||||||||||||
Enterprise |
merger under the same control | |||||||||||||||
Others | |||||||||||||||
II. Balance at the beginning of the year | 201,269,560.00 | 835,353,615.48 | 15,769,051.20 | -212,628.22 | 100,634,780.00 | 908,411,607.62 | 2,029,687,883.68 | 40,370,159.89 | 2,070,058,043.57 | ||||||
III. Increase and decrease for the period (“-” for decrease) | -152,635.00 | 1,681,221.21 | -3,115,145.95 | -56,437.91 | 357,260,258.01 | 361,847,552.26 | 49,956,670.30 | 411,804,222.56 | |||||||
(I) Total comprehensive income | -56,437.91 | 476,009,298.41 | 475,952,860.50 | -24,399,744.18 | 451,553,116.32 | ||||||||||
(II) Owner’s contribution and capital | -152,635.00 | 1,761,845.32 | -3,115,145.95 | 4,724,356.27 | 2,266,300.00 | 6,990,656.27 |
reduction | |||||||||||||||
1. Ordinary shares contributed by the owners | -152,635.00 | -2,431,475.55 | -3,115,145.95 | 531,035.40 | 2,266,300.00 | 2,797,335.40 | |||||||||
2. Capital contributions by other equity instrument holders | |||||||||||||||
3. Amount of share-based payments credited to owners’ equity | 4,193,320.87 | 4,193,320.87 | 4,193,320.87 | ||||||||||||
4. Others | |||||||||||||||
(III) Profit distrib | -118,749,040.40 | -118,749,040.40 | -118,749,040.40 |
ution | |||||||||||||||
1. Withdrawal of surplus reserve | |||||||||||||||
2. Withdrawal of general risk provision | |||||||||||||||
3. Distribution to owners (or shareholders) | -118,749,040.40 | -118,749,040.40 | -118,749,040.40 | ||||||||||||
4. Others | |||||||||||||||
(IV) Internal carry-forward of owners’ equity | |||||||||||||||
1. Transfer of capital reserve |
to capital (or share capital) | |||||||||||||||
2. Transfer of surplus reserve to capital (or share capital) | |||||||||||||||
3. Surplus reserve to cover loss | |||||||||||||||
4. Changes in defined benefit plan carried forward to retained earnings | |||||||||||||||
5. |
Carry-forward of other comprehensive income to retained earnings | |||||||||||||||
6. Others | |||||||||||||||
(V) Special reserve | |||||||||||||||
1. Withdrawal for the current period | |||||||||||||||
2. Utilization for the current period | |||||||||||||||
(VI) Others | -80,624.11 | -80,624.11 | 72,090,114.48 | 72,009,490.37 | |||||||||||
IV. Balance at the end of the period | 201,116,925.00 | 837,034,836.69 | 12,653,905.25 | -269,066.13 | 100,634,780.00 | 1,265,671,865.63 | 2,391,535,435.94 | 90,326,830.19 | 2,481,862,266.13 |
Item | 2019 | ||||||||||||||
Equity attributable to owners of the parent company | Minority equity | Total equity attributable to owners | |||||||||||||
Paid-up capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk provision | Undistributed profit | Others | Sub-total | |||||
Preference shares | Perpetual bonds | Others | |||||||||||||
I. Balance at the end of last year | 201,362,300.00 | 814,814,724.28 | 24,453,285.00 | -330,580.47 | 68,469,076.91 | 634,448,228.13 | 1,694,310,463.85 | 4,000,273.68 | 1,698,310,737.53 | ||||||
Add: Changes in accounting policies | |||||||||||||||
Correction for previous errors | |||||||||||||||
Enterprise merger under the same control | |||||||||||||||
Others | |||||||||||||||
II. | 201,362, | 814,814, | 24,453,2 | -330,580 | 68,469,0 | 634,448,2 | 1,694,310, | 4,000,27 | 1,698,310, |
Balance at the beginning of the year | 300.00 | 724.28 | 85.00 | .47 | 76.91 | 28.13 | 463.85 | 3.68 | 737.53 | ||||||
III. Increase and decrease for the period (“-” for decrease) | -92,740.00 | 20,538,891.20 | -8,684,233.80 | 117,952.25 | 32,165,703.09 | 273,963,379.49 | 335,377,419.83 | 36,369,886.21 | 371,747,306.04 | ||||||
(I) Total comprehensive income | 117,952.25 | 392,681,976.58 | 392,799,928.83 | -26,313,777.11 | 366,486,151.72 | ||||||||||
(II) Owner’s contribution and capital reduction | -92,740.00 | 15,299,196.19 | -8,684,233.80 | 23,890,689.99 | 21,085,273.44 | 44,975,963.43 | |||||||||
1. Ordinary shares contributed by the owners | -92,740.00 | -1,564,959.80 | -8,684,233.80 | 7,026,534.00 | 21,085,273.44 | 28,111,807.44 | |||||||||
2. Capital contribu |
tions by other equity instrument holders | |||||||||||||||
3. Amount of share-based payments credited to owners’ equity | 16,864,155.99 | 16,864,155.99 | 16,864,155.99 | ||||||||||||
4. Others | |||||||||||||||
(III) Profit distribution | 32,165,703.09 | -118,718,597.09 | -86,552,894.00 | -86,552,894.00 | |||||||||||
1. Withdrawal of surplus reserve | 32,165,703.09 | -32,165,703.09 | |||||||||||||
2. Withdrawal of general risk provision | |||||||||||||||
3. Distribution to | -86,552,894.00 | -86,552,894.00 | -86,552,894.00 |
owners (or shareholders) | |||||||||||||||
4. Others | |||||||||||||||
(IV) Internal carry-forward of owners’ equity | |||||||||||||||
1. Transfer of capital reserve to capital (or share capital) | |||||||||||||||
2. Transfer of surplus reserve to capital (or share capital) | |||||||||||||||
3. Surplus reserve to cover loss |
4. Changes in defined benefit plan carried forward to retained earnings | |||||||||||||||
5. Carry-forward of other comprehensive income to retained earnings | |||||||||||||||
6. Others | |||||||||||||||
(V) Special reserve | |||||||||||||||
1. Withdrawal for the current period | |||||||||||||||
2. Utilization for the current |
period | |||||||||||||||
(VI) Others | 5,239,695.01 | 5,239,695.01 | 41,598,389.88 | 46,838,084.89 | |||||||||||
IV. Balance at the end of the period | 201,269,560.00 | 835,353,615.48 | 15,769,051.20 | -212,628.22 | 100,634,780.00 | 908,411,607.62 | 2,029,687,883.68 | 40,370,159.89 | 2,070,058,043.57 |
Legal Representative: Hou Juncheng CFO of the Company: Wang Li Head of the public accountant: Wang Li
Statements of Changes in Owners’ Equity of Parent Company
January - December 2020
Unit: Yuan Currency: RMB
Item | 2020 | ||||||||||
Paid-up capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Total equity attributable to owners | |||
Preference shares | Perpetual bonds | Others | |||||||||
I. Balance at the end of last year | 201,269,560.00 | 834,592,133.74 | 15,769,051.20 | 100,634,780.00 | 778,293,340.18 | 1,899,020,762.72 | |||||
Add: Changes in accounting policies | |||||||||||
Correction for previous errors | |||||||||||
Others | |||||||||||
II. Balance at the beginning of the year | 201,269,560.00 | 834,592,133.74 | 15,769,051.20 | 100,634,780.00 | 778,293,340.18 | 1,899,020,762.72 | |||||
III. Increase and decrease for the period (“-” for decrease) | -152,635.00 | 2,483,291.58 | -3,115,145.95 | 356,696,503.11 | 362,142,305.64 | ||||||
(I) Total comprehensive income | 475,445,543.51 | 475,445,543.51 | |||||||||
(II) Owner’s | -152,635. | -2,431,47 | -3,115,14 | 531,035.4 |
contribution and capital reduction | 00 | 5.55 | 5.95 | 0 | |||||||
1. Ordinary shares contributed by the owners | -152,635.00 | -2,431,475.55 | -3,115,145.95 | 531,035.40 | |||||||
2. Capital contributions by other equity instrument holders | |||||||||||
3. Amount of share-based payments credited to owners’ equity | |||||||||||
4. Others | |||||||||||
(III) Profit distribution | -118,749,040.40 | -118,749,040.40 | |||||||||
1. Withdrawal of surplus reserve | |||||||||||
2. Distribution to owners (or shareholders) | -118,749,040.40 | -118,749,040.40 | |||||||||
3. Others | |||||||||||
(IV) Internal carry-forward of owners’ equity | |||||||||||
1. Transfer of capital reserve to capital (or share capital) | |||||||||||
2. Transfer of surplus reserve to capital (or share capital) | |||||||||||
3. Surplus reserve to cover loss | |||||||||||
4. Changes in defined benefit plan carried forward to retained earnings | |||||||||||
5. Carry-forward of other comprehensive income to retained earnings | |||||||||||
6. Others |
(V) Special reserve | |||||||||||
1. Withdrawal for the current period | |||||||||||
2. Utilization for the current period | |||||||||||
(VI) Others | 4,914,767.13 | 4,914,767.13 | |||||||||
IV. Balance at the end of the period | 201,116,925.00 | 837,075,425.32 | 12,653,905.25 | 100,634,780.00 | 1,134,989,843.29 | 2,261,163,068.36 |
Item | 2019 | ||||||||||
Paid-up capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Total equity attributable to owners | |||
Preference shares | Perpetual bonds | Others | |||||||||
I. Balance at the end of last year | 201,362,300.00 | 814,053,242.54 | 24,453,285.00 | 68,469,076.91 | 554,221,692.12 | 1,613,653,026.57 | |||||
Add: Changes in accounting policies | |||||||||||
Correction for previous errors | |||||||||||
Others | |||||||||||
II. Balance at the beginning of the year | 201,362,300.00 | 814,053,242.54 | 24,453,285.00 | 68,469,076.91 | 554,221,692.12 | 1,613,653,026.57 | |||||
III. Increase and decrease for the period (“-” for decrease) | -92,740.00 | 20,538,891.20 | -8,684,233.80 | 32,165,703.09 | 224,071,648.06 | 285,367,736.15 | |||||
(I) Total comprehensive income | 342,790,245.15 | 342,790,245.15 | |||||||||
(II) Owner’s contribution and capital reduction | -92,740.00 | 15,299,196.19 | -8,684,233.80 | 23,890,689.99 | |||||||
1. Ordinary shares contributed by the owners | -92,740.00 | -1,564,959.80 | -8,684,233.80 | 7,026,534.00 |
2. Capital contributions by other equity instrument holders | |||||||||||
3. Amount of share-based payments credited to owners’ equity | 16,864,155.99 | 16,864,155.99 | |||||||||
4. Others | |||||||||||
(III) Profit distribution | 32,165,703.09 | -118,718,597.09 | -86,552,894.00 | ||||||||
1. Withdrawal of surplus reserve | 32,165,703.09 | -32,165,703.09 | |||||||||
2. Distribution to owners (or shareholders) | -86,552,894.00 | -86,552,894.00 | |||||||||
3. Others | |||||||||||
(IV) Internal carry-forward of owners’ equity | |||||||||||
1. Transfer of capital reserve to capital (or share capital) | |||||||||||
2. Transfer of surplus reserve to capital (or share capital) | |||||||||||
3. Surplus reserve to cover loss | |||||||||||
4. Changes in defined benefit plan carried forward to retained earnings | |||||||||||
5. Carry-forward of other comprehensive income to retained earnings | |||||||||||
6. Others | |||||||||||
(V) Special reserve | |||||||||||
1. Withdrawal for the current period |
2. Utilization for the current period | |||||||||||
(VI) Others | 5,239,695.01 | 5,239,695.01 | |||||||||
IV. Balance at the end of the period | 201,269,560.00 | 834,592,133.74 | 15,769,051.20 | 100,634,780.00 | 778,293,340.18 | 1,899,020,762.72 |
Legal Representative: Hou Juncheng CFO of the Company: Wang Li Head of the public accountant: Wang Li
III General Information about the Company
1. Company profile
√ Applicable□ Not applicable
Proya Cosmetics Co., Ltd. (hereinafter referred to as “Company” or “the Company”),formerly known as Proya (Huzhou) Cosmetics Co., Ltd., was registered in Wuxing Branchof Huzhou Municipal Administration for Industry and Commerce on 24 May 2006. The Companyis headquartered in Hangzhou, Zhejiang Province. At present, the Company holds a businesslicense with the unified social credit code of 91330100789665033F. The current registeredcapital is RMB 201,116,900, and the number of shares totals 201,116,925 (with a par valueof RMB 1 per share). Among them, the number of restricted circulating shares is 747,425(A-share), and the number of non-restricted circulating shares is 200,369,500 (A-share).The Company was listed on Shanghai Stock Exchange on 15 November 2017.The Company is an enterprise of the beauty and personal careindustry, mainly engagedin the research and development, production and sales of cosmetics products. The mainproduct is: cosmetics.The financial statements were approved for external disclosure by the 19
thmeetingof the second session of the Board of Directors on 21 April 2021.
2. Scope of consolidated financial statements
√ Applicable□ Not applicable
The Company has incorporated 49 subsidiaries, including Hangzhou Proya Trade Co.,Ltd., Anya (Huzhou) Cosmetics Co., Ltd., Zhejiang Meiligu Electronic Commerce Co., Ltd.,Huzhou Chuangdai E-commerce Co., Ltd., Yueqing Laiya Trading Co., Ltd. and Hapsode(Hangzhou) Cosmetics Co., Ltd., into the consolidated financial statements of theReporting Period. See “VIII. Change in Consolidation Scope” and “IX. Equity in OtherEntities” in “Section XI Financial Report” of this report for details.
IV Preparation basis of financial statements
1. Preparation basis
The financial statements of the Company are prepared based on going concern.
2. Going concern
√ Applicable□ Not applicable
There are no matters or situations that may cause a major doubt in respect of thegoing-concern ability of the Company within 12 months since the end of the ReportingPeriod.
V Significant accounting policies and accounting estimatesNotes to specific accounting policies and accounting estimates:
√ Applicable□ Not applicable
Refer to “44. Changes in significant accounting policies and accounting estimates” in“V. Significant accounting policies and accounting estimates” of “Section XI FinancialReport”.
1. Statement of compliance of accounting standards for business enterprisesThe financial statements have been prepared by the Company in conformity with the ChinaAccounting Standards for Business Enterprises, and present truly and completely theCompany’s financial position, operating results, changes in shareholders' equity andcash flow and other related information.
2. Accounting period
The accounting period of the Company is from 1 January to 31 December of each calendaryear.
3. Operating cycle
√ Applicable□ Not applicable
The operating cycle of the Company’s businesses is short; the Company adopts 12 monthsas the liquidity classification criteria for assets and liabilities.
4. Reporting currency
The reporting currency of the Company is RMB.
5. Accounting treatments for enterprise merger under or not under common control
√ Applicable□ Not applicable
1. Accounting treatments for enterprise merger under common controlThe assets and liabilities acquired by the Company through enterprise merger aremeasured at the carrying value of the acquiree in the consolidated financial statementsof the ultimate controlling party at the date of merger. The Company adjusts the capitalreserve in accordance with the difference between the carrying value of the owner's equityof the acquiree in the final consolidated financial statements of the ultimate controllingparty and the carrying value of the consideration paid for the merger or the total nominalvalue of the issued shares. If the capital reserve is insufficient to offset the difference,the retained earnings shall be adjusted.
2. Accounting treatments for enterprise merger not under common controlWhere the cost of merger is higher than the fair value proportion of the netidentifiable assets acquired from the acquiree in the merger on the acquisition date,the Company recognizes such difference as goodwill. Where the combination cost is lessthan the fair value of the net identifiable assets acquired from the acquiree in the merger,
the measurement of the obtained fair values of the acquiree’s identifiable assets,liabilities or contingent liabilities, as well as the combination cost shall be checkedfirstly; if the combination cost is still less than the fair value proportion of the netidentifiable assets acquired from the acquiree in the merger after the recheck, thedifference will be included in the current profit or loss.
6. Preparation of consolidated financial statements
√ Applicable□ Not applicable
The parent company incorporates all its subsidiaries under its control into theconsolidation scope of the consolidated financial statements. The consolidated financialstatements are based on the financial statements of the parent company and itssubsidiaries, and prepared by the parent company in accordance with theAccountingStandards for Business Enterprises No. 33 - Consolidated Financial Statements.
7. Classification of joint venture arrangement and accounting treatment for joint operation
√ Applicable□ Not applicable
1. Jointly venture arrangement can be divided into joint operation and joint venture.
2. When the Company is a joint venture party of joint operation, the following itemsthat are related to the quantum of interest in joint operation are recognized:
(1) Assets held alone, and recognize the jointly owned assets according to the holding
shares;
(2) Liabilities undertaken alone, and jointly undertaken liabilities according tothe holding shares;
(3) Income incurred from selling the Company's output share of joint operation;
(4) Income of joint operation incurred from selling assets according to the Company'sshare;
(5) Cost incurred alone; and cost incurred from joint operation according to theCompany's share;
8. Determination of cash and cash equivalents
The cash listed in the cash flow statement refers to the cash on hand and depositsthat are available for payment at any time. The cash equivalents refer to the short-termand highly liquid investments that are readily convertible to known amounts of cash andsubject to an insignificant risk of change in value.
9. Foreign currency transactions and translation of foreign-currency statements
√ Applicable□ Not applicable
1. Translation of foreign currency transactions
Foreign currency transactions are translated into RMB at the approximate rate of spotrate on the transaction date during initial recognition. On the balance sheet date, theforeign currency monetary items are translated based on the spot rate on the balance sheetdate. The exchange difference arising from the different exchange rate is included inthe current profit or loss, except the exchange difference between the principal andinterest of the foreign currency borrowed for meeting the capitalization requirements;the foreign currency non-monetary items measured at historical cost are also translatedbased on the approximate rate of the spot rate on the transaction date, and the RMB amountis not changed; the foreign currency non-monetary items measured at fair value aretranslated based on the spot rate on the determination date of the fair value, and thedifference is included in the current profit or loss or other comprehensive income.
2. Translation of foreign-currency financial statements
Assets and liabilities items in the balance sheet are translated at the spot ratesprevailing at the balance sheet date. Owners’ equity items other than “undistributedprofit” are translated at the spot rates on the transaction dates. Income and expenseitems in the income statement are translated at the approximate rates of the spot rateson the transaction dates. Any balance incurred from the translation of foreign-currencyfinancial statements by the above method is included in other comprehensive income.
10. Financial instruments
√ Applicable□ Not applicable
1. Classification of financial assets and financial liabilities
The financial assets are classified into the following three categories duringinitial recognition: (1) financial assets measured at amortized cost; (2) financialassets measured at fair value through other comprehensive income; (3) financial assetsmeasured at fair value through current profit or loss.
The financial liabilities are classified into the following four categories duringinitial recognition: (1) financial liabilities measured at fair value through currentprofit or loss; (2) financial liabilities from failure of transfer of financial assetsto meet the derecognition conditions or continued involvement in transferred financialassets; (3) loan commitments given at a rate lower than market interest rate, not belongingto the financial guarantee contracts mentioned in (1) or (2) above and not in the case
described (1) above; (4) financial liabilities measured at amortized cost.
2. Recognition basis, measurement method and derecognition conditions for financialassets and financial liabilities
(1) Recognition basis and initial measurement method for financial assets andfinancial liabilities
One financial assets or financial liabilities are recognized when the Company becomesone party of financial instrument contract. The financial assets and financialliabilities are measured at the fair value during initial recognition. For financialassets and financial liabilities measured at fair value through current profit or loss,relevant transaction expenses are directly included into the current profit or loss: forother kinds of financial assets or financial liabilities, relevant transaction expensesare included into the amount of initial recognition. However, where the accountsreceivable initially recognized by the company do not include significant financingcomponents or the subsidiary does not take into account the financing components in thecontract for no more than one year, the initial measurement is made according to thetransaction price defined in theAccounting Standards for Business Enterprises No. 14– Revenue.
(2) Subsequent measurement method for financial assets
1) Financial assets measured at amortized cost
Such financial assets are subsequently measured at amortized cost by adopting theeffective interest method. The gains and losses incurred by the financial assets measuredat amortized cost but not belonging to any hedging relationship are included in the currentprofit or loss during derecognition, reclassification, amortization according to theeffective interest method or impairment recognition.
2) Debt instrument investment at fair value through other comprehensive income
The method of subsequent measurement with the fair value is adopted. The interest,impairment losses or gains and exchange gains and losses based on effective interestmethod are included in the current profit or loss, and other gains or losses are includedin other comprehensive income. When the recognition is terminated, the accumulated gainsor losses previously included in other comprehensive income are transferred from othercomprehensive income and included in the current profit or loss.
3) Equity instrument investment at fair value through other comprehensive income
The method of subsequent measurement with the fair value is adopted. The dividendsobtained (except for the part of investment cost recovery) shall be included in the current
profit or loss, and other gains or losses are included in other comprehensive income.When the recognition is terminated, the accumulated gains or losses previously includedin other comprehensive income is transferred from other comprehensive income and includedin retained earnings.
4) Financial assets measured at fair value through current profit or lossThe method of subsequent measurement with the fair value is adopted. The generatedgains or losses (including interest and dividend income) are included in the currentprofit or loss, unless the financial assets belong to part of the hedging relationship.
(3) Subsequent measurement method for financial liabilities
1) Financial liabilities measured at fair value through current profit or lossSuch financial liabilities include the trading financial liabilities (includingderivative instruments belonging to financial liabilities) and those designated asfinancial liabilities measured at fair value through current profit or loss. As for suchfinancial liabilities, the method of subsequent measurement with the fair value is adopted.The fair value changes of financial liabilities measured at fair value through currentprofit or loss arising from the credit risk change of the Company are included into othercomprehensive income, unless the wrong accounting distribution in the profit or loss willbe caused or expanded by this. Other gains or losses (including interest, except the fairvalue changes arising from the credit risk change of the Company) shall be included inthe current profit or loss, unless the financial liabilities belong to part of the hedgingrelationship. When the recognition is terminated, the accumulated gains or lossespreviously included in other comprehensive income is transferred from other comprehensiveincome and included in retained earnings.
2) Financial liabilities from failure of transfer of financial assets to meet thederecognition conditions or continued involvement in transferred financial assetsMeasurement shall be performed in accordance with theAccounting Standards forBusiness Enterprises No. 23 - Transfer of Financial Assets.
3) Loan commitments given at a rate lower than market interest rate, not belongingto the financial guarantee contracts mentioned in 1) or 2) above and not in the casedescribed in 1) above.
The subsequent measurement is made by the higher of the following two amounts afterinitial recognition: ① loss provisions determined according to regulations on impairmentof financial instruments; ② balance of the initially recognized amount after deductingcumulative amortization recognized in accordance with the regulations set out in the
Accounting Standards for Business Enterprises No. 14 – Revenue.
4) Financial liabilities measured at amortized cost
The effective interest method is adopted to measure at amortized cost. The gains andlosses incurred by the financial liabilities measured at amortized cost but not belongingto any hedging relationship are included in the current profit or loss duringderecognition, and amortization according to the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets in conformity to one of the following conditions are derecognized:
① The contract right to collect cash flow for the financial asset has terminated;
② The financial assets have been transferred in accordance with the provisions forderecognition of financial assets in theAccounting Standards for Business EnterprisesNo. 23 - Transfer of Financial Assets.
2) When the present obligations under the financial liabilities (or part thereof)are released, such financial liabilities (or that part thereof) are derecognized.
3. Recognition basis and measurement method for transfer of financial assets
If the Company has transferred almost all the risks and rewards related to theownership of financial assets, the financial assets are derecognized, and the rights andobligations resulting from or retained in the transfer are separately recognized as theassets or liabilities; and in case that almost all the risks and rewards related to theownership of the financial asset are retained, the recognition of the transferredfinancial asset is continued. In case of neither transfer nor retaining of almost allthe risks and rewards related to the ownership of the financial asset, it will dealt withaccording to the following situations respectively: (1) if the control over the financialassets is not retained, the financial asset shall be derecognized, and the rights andobligations resulting from or retained in the transfer are separately recognized as theassets or liabilities; (2) if the control over the financial assets is retained, therelevant financial assets are recognized according to the degree of continued involvementin the transferred financial assets, and the relevant liabilities are recognizedaccordingly.
If the transfer of an entire financial asset satisfies the conditions forderecognition, the difference between the two amounts below shall be included in thecurrent profit or loss: (1) Carrying value of the transferred financial assets at thedate of derecognition; (2) The sum of consideration received for the transfer of financialassets, plus the corresponding derecognized portion of accumulated change in fair value
previously included in other comprehensive income (in cases where the transferredfinancial assets are debt instrument investment at fair value through other comprehensiveincome). If partial transfer of financial assets is made and satisfies the conditionsfor derecognition, the overall carrying value before the transfer of financial assetsis apportioned according to their respective relative fair value at the transfer datebetween the portion of derecognized part and the remaining part, and the differencebetween the two amounts below is included in the current profit or loss: (1) carryingvalue of the derecognized part; (2) the sum of consideration for the derecognized part,plus the corresponding derecognized part of accumulated change in fair value previouslyincluded in other comprehensive income (in cases where the transferred financial assetsare debt instrument investment at fair value through other comprehensive income).
4. Method of determining the fair values of financial assets and financial liabilities
The Company adopts valuation techniques appropriate to the prevailing circumstanceswith the support of sufficient data and other information available, to determine thefair value of relevant financial assets and financial liabilities. The Company dividesthe inputs used by the estimation technique into the following levels and uses them inturn:
(1) The input value of the first level is the unadjusted quotation of the same assetsor liabilities that can be obtained on the measurement date in the active market;
(2) The input value of the second level is the directly or indirectly observable input
value of related assets or liabilities except the input value of the first level, including:
the quotation of similar assets or liabilities in an active market; the quotation of thesame or similar assets or liabilities in an inactive market; other observable input valuesother than quotation, such as the interest rate and yield curves that can be observedduring the normal quotation intervals; and the input values for market validation;
(3) The third level input value is the unobservable input value of the related assetsor liabilities, including interest rate that cannot be observed directly or cannot beverified according to observable market data, stock volatility, future cash flows ofretirement obligations borne during the business merger, and financial forecasts basedon its own data.
5. Impairment of financial instruments
(1) Impairment measurement and accounting treatment of financial instruments
Based on the expected credit loss, the Company carries out accounting treatment forimpairment and recognizes the loss provision for the financial assets measured at
amortized cost, the debt instrument investment measured at fair value through othercomprehensive income, contract assets, lease receivables, loan commitment other thanfinancial liabilities measured at fair value through current profit or loss, and thefinancial guarantee contracts of financial liabilities not measured at fair value throughcurrent profit or loss or financial liabilities not from failure of transfer of financialassets to meet the derecognition conditions or continued involvement in transferredfinancial assets.
Expected credit loss refers to the weighted average of credit losses of financialinstruments on the weight of default risk. Credit loss refers to the balance between allcontractual cash flows discounted according to the original effective interest rate andreceivable under the contract by the Company and all cash flows as expected, i.e. thepresent value of all cash shortages. The purchased or underlying financial assets of theCompany with credit impairment incurred shall be discounted according to their effectiveinterest rate upon credit adjustment.For the purchased or underlying financial assets with credit impairment incurred,only the accumulative changes in the expected credit loss in the whole duration afterinitial recognition shall be recognized by the Company as loss provision on the balancesheet date.For the receivables and contract assets from transactions in accordance with the
Accounting Standards for Business Enterprises No. 14 – Revenue, excluding significantfinancing components or without consideration, by the Company, to the financingcomponents in the contract for no more than one year, the Company measures the lossprovision according to the amount equal to the expected credit loss in the whole durationby applying simplified measurement method.
For the lease receivables as well as receivables and contract assets from transactionsin accordance with theAccounting Standards for Business Enterprises No. 14 – Revenue,excluding significant financing components, the Company measures the loss provisionaccording to the amount equal to the expected credit loss in the whole duration by applyingsimplified measurement method.
For financial assets other than above measurement methods, the Company shall, on eachbalance sheet date, assess whether their credit risk has increased significantly sinceinitial recognition. If the credit risk has increased significantly since the initialrecognition, the Company will measure the loss provision based on the amount of expectedcredit loss in the whole duration; if the credit risk has not significantly increased
since the initial recognition, the Company will measure the loss provision based on theamount of expected credit loss for the financial instruments in the next 12 months.
The Company determines whether the credit risk of financial instruments has increasedsignificantly since initial recognition by utilizing the available, reasonable andwell-grounded information, including forward-looking information, and comparing thedefault risks of the financial instruments on the balance sheet date and on the initialrecognition date.
If the Company determines that the financial instruments bear a low credit risk onthe balance sheet date, it assumes that the credit risk of the financial instruments hasnot increased significantly since initial recognition.
The Company evaluates the expected credit risk and measures the expected credit lossbased on single financial instrument or portfolio of financial instruments. When basedon the portfolio of financial instruments, the Company divides financial instruments intodifferent portfolios on the basis of the common risk characteristics.
The Company re-measures the expected credit loss on each balance sheet date, and theincreased or reversed amount of the loss provision arising therefrom, as losses or gainsfrom impairment, shall be included in current profit or loss. For financial assetsmeasured at amortized cost, the loss provision deducts the carrying value of the financialassets listed in the balance sheet; for the debt investment measured at fair value throughother comprehensive income, the Company recognizes its loss provision in othercomprehensive income without deducting the carrying value of the financial assets.
(2) Financial instruments for evaluating expected credit risk and measuring expectedcredit loss by portfolio
Item | Basis for determining the portfolio | Method for measurement of expected credit loss |
Other receivables - account age combination | Account age | Calculating the expected credit loss by the default risk exposure and the expected credit loss rate in next 12 months or in the whole duration by referring to historical experience in credit loss and according to the current situation and the forecast on future economic conditions |
(3) Receivables and contract assets with expected credit loss measured by portfolio
1) Portfolio details and method for measurement of expected credit loss
Item | Basis for determining the portfolio | Method for measurement of expected credit loss |
Receivables financing - bank acceptance | Bill type | Calculating the expected credit loss by the default risk exposure and the expected credit loss rate by referring to historical experience in credit loss and according to the current situation and the forecast on future economic conditions |
Accounts receivable - account age combination | Account age | Calculating the expected credit loss by preparing the comparison table between account age of accounts receivable and expected credit loss rate in the whole duration by referring to historical experience in credit loss and according to the current situation and the forecast on future economic conditions |
2) Accounts receivable - Comparison between account age of account age portfolio andexpected credit loss rate in the whole duration
Account age | Accounts receivable Expected credit loss rate (%) |
Within 1 year (inclusive, same for below) | 5 |
1-2 years | 30 |
2-3 years | 50 |
Above 3 years | 100 |
6. Offset of financial assets and financial liabilities
The financial assets and financial liabilities are listed in the balance sheetrespectively without offsetting. However, when the following conditions are met, thefinancial assets and liabilities are presented at the net amount after mutual offset inthe balance sheet. (1) the Company has the legal right of offsetting the recognized amountand such legal right is currently executable; (2) the Company plans to settle by net amount
or simultaneously realize the financial assets and clear off the financial liabilities.When the financial assets that do not meet the derecognition conditions aretransferred, the Company does not offset the transferred financial assets with therelevant liabilities.
11. Notes receivable
Determination and accounting treatment of the expected credit loss of notes receivable
□ Applicable√ Not applicable
12. Accounts receivable
Determination and accounting treatment of the expected credit loss of accountsreceivable
√ Applicable□ Not applicable
See IV “10. Financial instruments” in “Section XI Financial Report” of this report fordetails
13. Receivables financing
√ Applicable□ Not applicable
See IV “10. Financial instruments” in “Section XI Financial Report” of this reportfor details
14. Other receivables
Determination and accounting treatment of the expected credit loss of other receivables
√ Applicable□ Not applicable
See IV “10. Financial instruments” in “Section XI Financial Report” of this reportfor details.
15. Inventories
√ Applicable□ Not applicable
1. Classification of inventories
Inventories include finished goods or commodities for sale in daily routines, goodsin process during the production, materials consumed during production or rendering ofservice.
2. Valuation method for delivered inventories
Moving weighted average method is adopted for delivered inventories.
3. Basis for the determination of net realizable value of inventories
On the balance sheet date, the inventories shall be measured on the basis of the lowerone between the cost and net realizable value, and the inventory falling price reserveshall be withdrawn in accordance with the difference between the single inventory costand the net realizable value. The net realizable value of inventories directly for sale
is determined by the amount of the estimated selling price after subtracting the estimatedselling expenses and relevant taxes during the normal production and operation; the netrealizable value of inventories required to be processed is determined by the amount ofthe estimated selling price of the finished products after subtracting the estimated costby the end of processing, the estimated selling expenses and relevant taxes during thenormal production and operation. On the balance sheet date, the net realizable value isdetermined separately for the two parts of the same inventory with or without contractprice, and is compared with the relevant costs to separately determine the amountwithdrawn or reversed for inventory falling price reserve.
4. Inventory system
The inventory system is the perpetual inventory system.
5. Amortization of low-value consumables and packaging materials
(1) Low-value consumables
Amortization is performed by the one-off write-off method.
(2) Packaging materials
Amortization is performed by the one-off write-off method.
16. Contract assets
(1). Recognition methods and standards of contract assets
√ Applicable□ Not applicable
The rights of the Company to collect consideration from the customer unconditionally(i.e. only depending on time) are presented as receivables; the rights (depend on otherfactors than time) to collect consideration for transferring goods to the customer arepresented as contract assets.
(2). Determination and accounting treatment of the expected credit loss of contract
assets
□ Applicable√ Not applicable
17. Held-for-sale assets
□ Applicable√ Not applicable
18. Debt investment
(1). Determination and accounting treatment of the expected credit loss of debt
investment
□ Applicable√ Not applicable
19. Other debt investments
(1). Determination and accounting treatment of the expected credit loss of other debt
investments
□ Applicable√ Not applicable
20. Long-term receivables
(1). Determination and accounting treatment of the expected credit loss of long-term
receivables
□ Applicable√ Not applicable
21. Long-term equity investment
√ Applicable□ Not applicable
1. Joint control or significant influence criterion
Joint control is the contractually agreed sharing of control of an arrangement, andexists only when decisions about the relevant activities of the arrangement require theunanimous consent of the parties sharing control. Significant influence refers to thepower to participate in the decision-making process on the financial and operatingpolicies of the investee, but not power to control or jointly control the formulationof such policies with other parties.
2. Determination of investment cost
(1) For enterprise merger under common control: where the merging party pays cash,transfers non-cash assets, bears debts or issues equity securities as consideration ofmerger, the initial investment cost is the share with reference to the carrying valueof the owners’ equity of the acquiree in the consolidated financial statements of theultimate controlling party on the date of merger. The difference between the initialinvestment cost of long-term equity investment and the carrying value of the considerationpaid for the merger or total nominal value of the issued shares is adjusted to capitalreserve. If the capital reserve is not sufficient to offset the difference, the retainedearnings are adjusted.
The Company judges whether the item is a "package deal” via long-term equityinvestment formed by enterprise merger under common control through multiple transactions.For “package deal”, multiple deals are subject to accounting treatment asone deal that has acquired control right. For items that do not belong to the“package deal”, the initial investment cost is determined on the basis of the share withreference to the carrying value of the net asset of the acquiree in the consolidatedfinancial statements of the ultimate controlling party on the date of merger. Thedifference between initial investment cost of long-term equity investment at the date
of merger and the carrying amount of long-term equity investment before merger and thesum of carrying value of newly paid consideration for additional shares acquired on thedate of merger is to adjust capital reserve. If the balance of capital reserve isinsufficient to offset the difference, the retained earnings are adjusted.
(2) For the business merger not under common control, the fair value of considerationpaid for merger is regarded as the initial investment cost on the acquisition date.
For the long-term equity investment achieved by the Company via business merger notunder common control through several transactions, the relevant accounting treatment isbased on individual financial statement or consolidated financial statements:
1) In individual financial statements, the initial investment cost when changing tothe cost method is the sum of the carrying value of the equity investment originally heldand the newly increased investment cost.
2) In the consolidated financial statements, the item is determined whether it isa “package deal”. For “package deal”, multiple deals are subject to accounting treatmentas one deal that has acquired control right. For items that do not belong to the “packagedeal”, the equity of the acquiree held before the acquisition date is re-measured atthe fair value of this equity on the acquisition date, and the difference between thefair value and its carrying value is included in the current investment income; if theequity of the acquiree held before the acquisition date is related to other comprehensiveincome under the equity method, the other related comprehensive income is converted intothe current income on the acquisition date, excluding the other comprehensive incomederived from changes of net liabilities or net assets due to re-measurement on definedbenefit plan by the investee.
(3) For cases other than business merger: If it is obtained through paying cash, theinitial investment cost shall be the actual payment; if it is obtained through issuingequity securities, the initial investment cost is the fair value of the equity securities;if it is obtained through debt restructuring, the initial investment cost is determinedbased on theAccounting Standards for Business Enterprises No. 12 - Debt Restructuring;if it is obtained through the exchange of non-monetary assets, the initial investmentcost is determined based on theAccounting Standards for Business Enterprises No. 7 -Exchange of Non-monetary Assets.
3. Subsequent measurement and recognition of profit or loss
For long-term equity investment controlled by the investee, cost method is adoptedfor accounting; for the long-term equity investment of associates and joint ventures,
equity method is adopted for accounting.
4. Treatment methods for loss of control upon a stepwise disposal of investment tosubsidiaries through multiple transactions
(1) Individual financial statements
For disposal of equity, the difference between the carrying value and theconsideration actually received is included in the current profit or loss. The accountingof residual equity is completed by equity method in case of significant influence on theinvestee or implementation of joint control with other parties; but in case of no control,joint control or significant influence on the investee, the accounting of residual equitymust comply with the relevant provisions of theAccounting Standards for BusinessEnterprises No.22 - Recognition and Measurement of Financial Instruments.
(2) Consolidated financial statements
1) Loss of control upon stepwise disposal of investment to subsidiaries throughmultiple transactions, not belonging to “package deal”
Before losing the control, for the difference between the price of disposal and thesubsidiary’s net assets entitled from the disposal of long-term equity investmentcumulatively calculated from the acquisition date or the date of merger, the capitalreserve (capital premium) is adjusted. If the capital premium is insufficient to offsetthe difference, the retained earnings are adjusted.
When control over the original subsidiary is lost, the remaining equity is remeasuredat fair value as at the date on which the control is lost. The difference between thesum of the consideration received from equity disposal and the fair value of the remainingequity and the net assets of the original subsidiary proportionate to the originalshareholding accumulated from the date of acquisition or merger is included in investmentgains of the period during which the control is lost, and meanwhile, the goodwill is offset.Other comprehensive income related to the equity investment in the original subsidiaryis transferred to investment gains of the period during which the control is lost.
2) Loss of control upon stepwise disposal of investment to subsidiaries throughmultiple transactions, belonging to “package deal”
All transactions are regarded as one transaction disposing thesubsidiaries and losing the control right for accounting treatment. However,the difference between the amount received each time for disposal beforethe control is lost and the net assets of such subsidiary correspondingto the disposal of investment is recognized as other comprehensive incomein the consolidated financial statements, and is transferred to profit or
loss of the period during which the control is lost upon loss of control.
22. Investment real estate
(1). In case of cost measurement model:
Depreciation or amortization method
1. The investment real estate includes leased land use right, land use right heldfor transfer upon appreciation, and rental building.
2. Cost method is employed for initial measurement of investment real estate, andcost model for subsequent measurement; depreciation or amortization shall be withdrawnusing the same method as that for fixed assets and intangible assets.
23. Fixed assets
(1). Conditions for recognition
√ Applicable□ Not applicable
Fixed assets are tangible assets that are held for use in the production or supplyof goods or services, for rental to others, or for administrative purposes; and have auseful life of more than one accounting year. The fixed assets are recognized whenfollowing conditions are satisfied at the same time: the economic benefits are likelyto inflow to the Company; the costs of such fixed assets can be measured reliably.
(2). Method for depreciation
√ Applicable□ Not applicable
Category | Method for depreciation | Useful lives of depreciation (year) | Residual value | Annual depreciation rate |
Property and buildings | Straight-line method | 10 or 30 | 5% | 9.50% or 3.17% |
General equipment | Straight-line method | 3-10 | 5% | 31.67%-9.50% |
Dedicated equipment | Straight-line method | 5-10 | 5% | 19.00%-9.50% |
Means of transportation | Straight-line method | 5 | 5% | 19.00% |
(3). Recognition basis, valuation and depreciation method of fixed assets under finance
lease
□ Applicable√ Not applicable
24. Construction in progress
√ Applicable□ Not applicable
1. The construction in progress is recognized when following conditions are satisfiedat the same time: the economic benefits are likely to inflow to the Company; the costs
of such construction in progress can be measured reliably. Construction in progress ismeasured at the actual cost incurred to make the assets ready for their intended use.
2. Construction in progress is transferred to fixed assets at the actual cost whenit reaches the expected condition for service. When construction in progress has achievedserviceable conditions but final settlement has not been finished yet, it is firsttransferred to fixed assets as per estimated value. After final settlement is finished,the estimated value is adjusted based on actual cost, but the depreciated amount willnot be adjusted.
25. Borrowing costs
√ Applicable□ Not applicable
1. Criteria for recognition of capitalized borrowing costs
For borrowing costs incurred by the Company that are directly attributable to theacquisition and construction or production of assets qualified for capitalization, thecosts will be capitalized and included in the costs of the related assets. Other borrowingcosts shall be recognized as expense in the period in which they incur and are includedin the current profit or loss.
2. Capitalization period of borrowing costs
(1) Capitalization of borrowing costs begins when the following three conditions arefully satisfied: 1) expenditures for the assets have been incurred; 2) borrowing costshave been incurred; 3) acquisition and construction or production that are necessary toenable the assets reach the intended usable or saleable conditions have commenced.
(2) Where abnormal interruption of the assets eligible for capitalization occursduring the acquisition and construction or production process and such interruption haslasted for more than 3 consecutive months, the capitalization of borrowing costs issuspended; the borrowing costs during the interruption are recognized as current expensestill resumption of purchasing or production of the assets.
(3) Capitalization of borrowing costs is suspended during periods in which thequalifying asset under acquisition and construction or production is ready for theintended use or sale.
3. Capitalization rate and amount of borrowing costs
In case of special borrowing for the acquisition and construction or production ofassets meeting the capitalization conditions, interest amount to be capitalized isrecognized after deducting the bank interests for the unused portion or the investmentincome for temporary investment from the interest costs (including recognized
depreciation or amortization of premium under effective interest method) actuallyincurred in the current period of specific borrowing; for general borrowing occupied forthe acquisition and construction or production of assets meeting the capitalizationconditions, the interest amount to be capitalized shall be determined by the resultobtained by multiplying the capitalization rate of occupied general borrowing with theweighted average value of the asset expenditure for the accumulated expenditure exceedingthe specific borrowing portion.
26. Biological assets
□ Applicable√ Not applicable
27. Oil and gas assets
□ Applicable√ Not applicable
28. Right-of-use assets
□ Applicable√ Not applicable
29. Intangible assets
(1). Valuation method, useful life and impairment test
√ Applicable□ Not applicable
1. Intangible assets, including land use rights, patent rights and non-patentedtechnologies, are measured at the cost.
2. Amortization for the intangible assets with limited useful life is reasonablyperformed in the expected realization pattern according to economic benefits related tothe intangible assets within its useful life; if the expected realization pattern cannotbe reliably determined, the straight-line method shall be adopted for amortization. Thespecific year information are shown as below:
Item | Amortization period (year) |
Land use rights | 40 or 50 |
Unpatented technology | 5 |
Office software | 3-10 |
Patent right | 5 |
Customer resources | 3 |
Trademark right | 10 |
(2). Accounting policy regarding the expenditure on the internal research and development
√ Applicable□ Not applicable
Expenses incurred during the research phase of the internal research and developmentprojects are included in the current profit or loss. Expenses in the development phaseare recognized as intangible assets when all of the following conditions are satisfied:
(1) It is technically feasible to complete the intangible assets so that it will beavailable for use or sale; (2) there is an intention to complete the intangible assetsfor use or sale; (3) the intangible assets can produce economic benefits, including thereis evidence that the products produced using the intangible assets has a market or theintangible assets itself has a market; if the intangible assets is for internal use, thereis evidence that there exists usage for the intangible assets; (4) there is sufficientsupport in terms of technology, financial resources and other resources in order tocomplete the development of the intangible assets, and there is capability to use or sellthe intangible assets; (5) the expenses attributable to the development phase of theintangible assets can be measured reliably.
30. Impairment of long-term assets
√ Applicable□ Not applicable
For such long-term assets as long-term equity investment, investment real estatemeasured by the cost model, fixed assets, construction in progress and intangible assetswith limited useful life, in case that there are signs indicating impairment on the balancesheet date, the recoverable amount shall be estimated. Whether there is a sign ofimpairment or not, the goodwill acquired in the enterprise merger and intangible assetswith indefinite useful life is tested for impairment each year. The impairment test ongoodwill is carried out in combination with its related asset group or asset groupportfolio.
In case the recoverable amount of the above long-term assets is lessthan its carrying value, the provision for asset impairment is recognizedaccording to its differences and included into current profit or loss.
31. Long-term prepaid expenses
√ Applicable□ Not applicable
The long-term prepaid expenses involve all expenses already paid with amortizationperiod of more than 1 year (excluding 1 year). Long-term prepaid expenses are enteredin an account at the actual amounts, and are amortized by even amortization within thebenefit period or prescribed amortization period. If the long-term deferred expenses
cannot provide benefit to the future accounting period, then all of the amortized valueof the unamortized long-term deferred expenses are transferred into the current profitor loss.
32. Contract liabilities
(1). Recognition method of contract liabilities
√ Applicable□ Not applicable
The Company recognizes the obligation to transfer goods to customersfor the consideration received or receivable from the customers as contractliabilities.
33. Employee remuneration
(1). Accounting treatment for short-term remuneration
√ Applicable□ Not applicable
During the accounting period when employees provide service for the company, theshort-term remuneration actually incurred will be recognized as liabilities, and willbe included in the current profit or loss or the costs of the related assets.
(2). Accounting treatment for post-employment benefits
√ Applicable□ Not applicable
Post-employment benefits are divided into the defined contribution plan and definedbenefit plan.
(1) During the accounting period when employees provide service for the Company, theamounted to be deposited as calculated according to the defined contribution plan shallbe recognized as liabilities, and will be included in the current profit or loss or thecosts of the related assets.
(2) The accounting treatment for the defined benefit plan generally comprises thefollowing steps:
1) According to the expected cumulative benefit unit method, the demographicvariables, financial variables, etc. shall be estimated through unbiased and mutuallyconsistent actuarial assumption, so as to measure the obligations arising from the definedbenefit plan and determine the period of relevant obligations. In addition, the obligationgenerated from the defined benefit plan shall be discounted, so as to determine the presentvalue of defined benefit plan obligation and current service cost;
2) In case of assets in the defined benefit plan, the deficit or surplus generatedfrom the present value of obligations of the defined benefit plan minus the fair valueof the assets of defined benefit plan is recognized as net liabilities or net assets in
the defined benefit plan. When the defined benefit plan has surplus, the net assets ofthe defined benefit plan are measured at the lower of the surplus of defined benefit planand the upper limit of the assets;
3) At the end of the period, the employee remuneration costs generated by the definedbenefit plan are recognized as three parts, i.e., service costs, net interest of the netliabilities or net assets of the defined benefit plan, and the changes generated byre-measurement of the net liabilities or net assets of the defined benefit plan, in whichthe service costs and the net interest of the net liabilities or net assets of the definedbenefit plan are included in current profit or loss or the costs of the related assets,and the changes generated by re-measurement of the net liabilities or net assets of thedefined benefit plan are included in other comprehensive income, and cannot be reversedto profit or loss in the subsequent accounting period. However, the amount recognizedin other comprehensive income can be transferred within the equity scope.
(3). Accounting treatment methods of termination benefits
√ Applicable□ Not applicable
If termination benefits are provided to employees, the employee remunerationliabilities arising from the termination benefits are recognized on the earlier date ofthe following and included in the current profit or loss: (1) when the Company cannotunilaterally withdraw the termination benefits provided due to termination of laborrelation plan or layoff proposal; (2) when the Company recognizes the cost or expensesrelated to the restructuring involving payment of termination benefits.
(4). Accounting treatment for other long-term employees’ benefits
√ Applicable□ Not applicable
Other long-term employee benefits satisfying the conditions in the definedcontribution plan are treated in accounting as stipulated in the defined contributionplan; and other long-term benefits beyond that are treated in accounting as stipulatedin the defined benefit plan. In order to simplify related accounting treatment, thegenerated employee remuneration costs are recognized as the service cost. The total netamount of item composed of the net interest of net liabilities or net assets of otherlong-term employee benefits and the changes generated from re-measuring net liabilitiesor net assets of other long-term employee benefits is included in the current profit orloss or the costs of the related assets.
34. Lease liabilities
□ Applicable√ Not applicable
35. Estimated liabilities
√ Applicable□ Not applicable
1. The obligations imposed by contingencies, such as providing external guarantee,lawsuits, product quality assurance and onerous contract, become the current obligationsassumed by the Company, which are determined by the Company as estimated liabilities whentheir performance is very likely to result in economic benefit outflow from the Companyand their amount can be measured reliably.
2. The estimated liabilities are initially measured by the Company based on theoptimal estimate to be paid for performing relevant current obligations and their carryingvalue are reviewed on the balance sheet date.
36. Share-based payments
√ Applicable□ Not applicable
1. Types of share-based payments
There are equity-settled and cash-settled share-based payments.
2. Relevant accounting treatment of implementing, modifying and terminating theshare-based payment schedule
(1) Equity-settled share-based payments
These equity-settled share-based payments vested immediately after the grant dateand exchanged for employee services shall be included in relevant costs or expenses asper the fair value of the equity instruments on the grant date, and the capital reserveshall be adjusted accordingly. For the equity-settled share-based payments that arevested only after the services within the waiting period are completed or the specifiedperformance conditions are satisfied and that are exchanged for employee services, theservices acquired in the current period are included in relevant costs or expenses asper the fair value of the equity instruments on the grant date based on the optimal estimateof the number of vesting equity instruments on each balance sheet date within the waitingperiod, and the capital reserve is adjusted accordingly.
The equity-settled share-based payments exchanged for services of other parties aremeasured as per the fair value of the services of other parties on the date of acquiringif its reliable measurement is possible, and as per the fair value of the equityinstruments on the date of acquiring the services if the reliable measurement of the fairvalue of the services of other parties is impossible, but that of the equity instruments
is possible, they are included in relevant costs or expenses, and the owner’s equityis increased accordingly.
(2) Cash-settled share-based payments
These cash-settled share-based payments vested immediately after the grant date andexchanged for employee services shall be included in relevant costs or expenses as perthe fair value of the liabilities assumed by the Company on the grant date, and theliabilities shall be increased accordingly. For these cash-settled share-based paymentsthat are vested only after the services within the waiting period are completed or thespecified performance conditions are satisfied and that are exchanged for employeeservices, the services acquired in the current period shall be included in relevant costsor expenses and corresponding liabilities as per the fair value of the liabilities assumedby the Company based on the optimal estimate of the vesting conditions on each balancesheet date within the waiting period.
(3) Modifying and terminating the share-based payment schedule
If the fair value of the granted equity instruments is increased, the Companyrecognizes the increase of the acquired services according to the fair value of the equityinstruments. If the number of the granted equity instruments is increased, the Companyrecognizes the increased fair value of the equity instruments as the increase of theacquired services accordingly. If the Company modifies the vesting conditions in a wayfavorable to employees, the Company considers the modified vesting conditions whendealing with the vesting conditions.
If the fair value of the granted equity instruments is decreased, the Companycontinues to recognize the amount of the acquired services according to the fair valueof the equity instruments on the grant date, without taking into account the decreaseof the fair value of the equity instruments. If the number of the granted equityinstruments is decreased, the Company treats the decreased part as cancellation of thegranted equity instruments. If the Company modifies the vesting conditions in a wayunfavorable to employees, the Company will not consider the modified vesting conditionswhen dealing with the vesting conditions.
If the Company cancels or settles the granted equity instruments within the waitingperiod (other than the cancellation arising from failure to meet the vesting conditions),the cancellation or settlement is regarded as accelerated vesting treatment toimmediately recognize the amount that should be recognized within the remaining waitingperiod.
37. Preferred shares, perpetual bonds and other financial instruments
□ Applicable√ Not applicable
38. Revenue
(1). Accounting policy applied for revenue recognition and measurement
√ Applicable□ Not applicable
1. Revenue recognition principle
The Company shall, on the commencement date of the contract, evaluate the contract,identify the individual performance obligations provided in the contract and determinewhether to perform them within a period or at a time point.The performance obligations shall be deemed to perform within a period if one of thefollowing conditions is satisfied, otherwise, at a time point: (1) The customer acquiresand consumes the economic benefits brought by the Company’s performance while the Companyis performing its obligations; (2) the customer is capable to control the commoditiesunder creation during the Company’s performance; (3) the commodities produced duringthe Company’s performance have irreplaceable purpose and the Company has the right tocollect the amounts for the performance part already completed to date within the wholecontract term.
For the obligations performed within a period, the Company shall recognize the revenueaccording to the performance progress in that period. If the performance progress cannotbe determined in a reasonable way, but the incurred costs are expected to be reimbursed,the revenue shall be recognized according to the incurred amount of costs until theperformance progress can be determined in a reasonable way. For the obligations performedat a time point, the revenue shall be recognized at the time of the customer’s acquiringthe control of related commodities or services. The Company shall take into account thefollowing when judging whether the customer has acquired the commodity control: (1) TheCompany has the current right for collection, namely the customer has the currentobligation for payment with respect to the commodity; (2) the Company has transferredthe legal title of the commodity to the customer, namely the customer has acquired thesame; (3) the Company has transferred the physical commodity to the customer, namely thecustomer has physical possession of the commodity; (4) the Company has passed the mainrisks and return on the commodity’s title to the customer, namely the customer hasacquired the same; (5) the customer has accepted the commodity; and (6) there are othersigns indicating that the customer has acquired the commodity control.
2. Revenue measurement principle
(1) The Company shall measure the revenue according to the transaction priceapportioned to the individual performance obligations. The transaction price refers tothe consideration amount of which the Company is expected to have right for collectiondue to transfer of commodities or services to the customer, excluding the amounts chargedon behalf of the third party and expected to refund to the customer.
(2) In case of variable consideration in the contract, the Company shall determinethe optimal estimate of the variable consideration according to the expected value orthe amount most likely to incur, while the transaction price including the variableconsideration shall not exceed the amount under the circumstance where the accumulativelyrecognized revenue will not be highly likely to suffer major reversal when relevantuncertainties are eliminated.
(3) In case of major financing composition in the contract, the Company shalldetermine the transaction price according to the payable amount assumed to be paid bythe customer in cash immediately after he acquires the control of the commodities orservices. The difference between the transaction price and the contract considerationshall be amortized by the effective interest method within the contract term. If theCompany expects, on the commencement date of the contract, that the interval between thecustomer’s acquisition of the control of the commodities or services and its paymentis not more than one year, the major financing composition in the contract shall not betaken into account.
(4) In case of two or more performance obligations in the contract, the Company shall,
on the commencement date of the contract, apportion the transaction price to theindividual performance obligations according to the relative proportion of the individualsales price of the commodities undertaken as per the individual performance obligations.
(2). Difference in accounting policy for revenue recognition resulting from different
business models for similar businesses
√ Applicable□ Not applicable
The Company sells cosmetics. It has different sales models classified as distribution,direct selling and sales on commission.
(1) Distribution
The sales revenue shall be recognized after the Company delivers the products to thebuyer according to the provisions of the contract and the buyer accepts the same.
(2) Direct selling
The sales revenue shall be recognized after the Company delivers the commodities tothe consumer, and the consumer confirms receipt and makes payment.
(3) Sales on commission
The sales revenue shall be recognized after the Company delivers the products to thecommissioned party according to the provisions of the contract and the commissioned partyprovides the list of sales on commission to the Company upon selling the products toothers.
39. Contract cost
√ Applicable□ Not applicable
The assets associated with the contract cost include the contract acquisition costand contract performance cost.
The incremental cost incurred by the Company for acquiring the contract that isexpected to be recoverable, as the contract acquisition cost, shall be recognized as anasset. If the amortization period of the contract acquisition cost is no more than oneyear, it shall be directly included in the current profit or loss at the time of incurrence.
The cost incurred by the Company for performing the contract that falls out of thestandard scope of relevant criteria for stock, fixed assets or intangible assets and thatsatisfies the following conditions, as the contract performance cost, shall be recognizedas an asset:
1. The cost is directly related to one contract acquired currently or as expected,including direct labor, direct materials and manufacturing expenses (or similar), costsexpressly borne by the customer and other costs incurred solely in connection with thecontract;
2. The cost increases the resources for the Company to perform its obligations inthe future;
3. The cost is expected to be recoverable.
The Company shall amortize the assets related to the contract cost on the same basisas for recognizing the revenue of the commodities or services in connection with the assetsand include the same in the current profit or loss.
If the carrying value of the assets related to the contract cost is more than thesurplus consideration expected to be acquired for transferring the commodities orservices in connection with the assets minus the cost expected to incur, the Company shallmake the provision for impairment against the exceeding part and recognize it as the assetsimpairment loss. If any changes in the factors for impairment in previous periods make
the surplus consideration expected to be acquired for transferring the commodities orservices in connection with the assets minus the cost expected to incur higher than thecarrying value of the assets, the provision for assets impairment made originally shallbe reversed and included in the current profit or loss, provided that the reversed carryingvalue of the assets is no more than that on the reversal date without making the provisionfor impairment.
40. Government grant
√ Applicable□ Not applicable
1. Government grants are recognized when all of the following conditions are satisfied:
(1) The Company is able to meet the conditions attached to the government grants; (2)the Company is able to receive the government grants. In case of government grants asmonetary assets, they shall be measured as per the amount received or receivable. In caseof government grants as non-monetary assets, they shall be measured as per the fair value;in case that the fair value cannot be acquired in a reliable way, they shall be measuredas per the nominal amount.
2. Basis of determination and accounting treatment method for government grantsrelated to assetsThese government grants that are used for purchasing and constructing or otherwiseforming long-term assets as specified in government documents are classified asgovernment grants related to assets. In case of no provision in government documents,the government grants shall be determined on the basis of the essential condition requiredfor obtaining the grants, and shall be considered as related to assets if the essentialcondition is purchasing and constructing or otherwise forming long-term assets. Thegovernment grants related to assets shall offset the carrying value of relevant assetsor be recognized as deferred income. If the government grants related to assets arerecognized as deferred income, they shall be included in the profit and loss in areasonable and systematic way within the useful life of relevant assets. The governmentgrants measured as per the nominal amount shall be directly included in the current profitor loss. If related assets are sold, transferred, scrapped or damaged before the end oftheir useful life, related deferred income balance unallocated shall be transferred intothe profit and loss in the current period of assets disposal.
3. Basis of determination and accounting treatment method for government grantsrelated to income
The government grants other than those related to assets are classified as government
grants related to income. If it is difficult to distinguish whether the government grantscontaining both the part related to assets and the part related to income are relatedto assets or income, they shall be entirely classified as the government grants relatedto income. The government grants related to income that are used for compensation forrelevant costs or losses in subsequent periods shall be recognized as deferred income,and included in the current profit or loss or offset relevant costs in the period in whichrelevant costs or losses are recognized; those used for compensation for relevant costsor losses that have incurred shall be directly included in the current profit or lossor offset relevant costs.
4. The government grants related to daily business activities of the Company shallbe included in other incomes or offset relevant costs according to the nature of theeconomic business. The government grants unrelated to the daily activities of the Companyshall be included in non-operating income and expenses.
41. Deferred income tax assets/liabilities
√ Applicable□ Not applicable
1. According to the difference between the carrying value of the assets andliabilities and their tax basis (if the tax basis of the items recognized not as assetsand liabilities can be determined according to the provisions of the tax law, thedifference between that tax basis and their physical count quantity), the deferred incometax assets or liabilities shall be calculated and recognized according to the tax rateapplicable in the period where it is expected to recover the assets or liquidate theliabilities.
2. Deferred income tax assets are recognized to the extent that it is very likelyto obtain the taxable income to deduct the deductible temporary differences. If on thebalance sheet date, there are conclusive evidences proving that it is very likely to obtainsufficient taxable income in future periods to deduct the deductible temporarydifferences, the deferred income tax assets not recognized yet in previous accountingperiods shall be recognized.
3. If the carrying value of the deferred income tax assets is reviewed on the balancesheet date and it is very likely to not obtain sufficient taxable income in future periodsto deduct their benefits, the carrying value of the deferred income tax assets shall bewritten down. When it is very likely to obtain sufficient taxable income, the amountwritten down shall be reversed.
4. The current income tax and deferred income tax of the Company are included in the
current profit or loss as the income tax expense or income, except for the income taxarising from the following circumstances: (1) Business merger; (2) transaction or mattersrecognized directly in the owner’s equity.
42. Lease
(1). Accounting treatment method of operating lease
√ Applicable□ Not applicable
If the Company is the lessee, the rent is included in relevant asset cost or recognizedas the current profit or loss according to the straight-line method during each periodof the lease term, and the initial direct expenses incurred are directly included in thecurrent profit or loss. The contingent rent is included in the current profit or lossat the time of actually incurring.
If the Company is the lessor, the rent is recognized as the current profit or lossaccording to the straight-line method during each period of the lease term, and the initialdirect expenses incurred are directly included in the current profit or loss, except forthe large amount which is capitalized and included in the profit and loss in stages. Thecontingent rent is included in the current profit or loss at the time of actuallyincurring.
(2). Accounting treatment method of financing lease
□ Applicable√ Not applicable
(3). Determination method and accounting treatment method of lease under new lease
standards
□ Applicable√ Not applicable
43. Other significant accounting policies and accounting estimates
□ Applicable√ Not applicable
44. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
√ Applicable□ Not applicable
Contents and reasons of changes in accounting policies | Review and approval procedure | Remarks (name and amount of report items affected materially) |
The Company has implemented the revised Accounting Standards for Business Enterprises No. 14 - Revenue of the Ministry of Finance (hereinafter referred to as | For Resolutions at the 12th meeting of the Second Session of the Board of Directors in 2020, refer to Company Notice No.: 2020-012 | In accordance with the link-up rules for relevant new and old standards, the information in the comparable periods shall not be adjusted, and the |
“new revenue standards”) since 1 January 2020. | cumulative effects of implementing the new standards on the first implementation date shall be used for retroactive adjustment of the retained earnings at the beginning of the Reporting Period as well as the amount of other related items in the financial statements. See “other particulars” below for details. | |
Other particulars
1. The major impact of the implementation of new revenue standards on theCompany's financial statements on 1 January 2020 is as follows:
Item | Balance sheet | ||
31 December 2019 | Impact from adjustment of new revenue standards | 1 January 2020 | |
Other current assets | 11,723,268.59 | 7,122,566.88 | 18,845,835.47 |
Accounts received in advance | 40,913,490.55 | -40,913,490.55 | |
Contract liabilities | 50,216,613.89 | 50,216,613.89 | |
Other current liabilities | 1,948,803.22 | 1,948,803.22 | |
Estimated liabilities | 10,102,532.74 | 7,122,566.88 | 17,225,099.62 |
Deferred income | 19,743,036.56 | -11,251,926.56 | 8,491,110.00 |
2. The Company has implemented the
Interpretation No. 13 of the Accounting Standardsfor Business Enterprisesissued by the Ministry of Finance in 2019 since 1 January 2020,and prospective application was adopted for this accounting policy change.
(2). Changes in significant accounting estimates
□ Applicable√ Not applicable
(3). Particulars on adjustment to the financial statements at the beginning of the year for the first
implementation of new standards for revenues and new standards for lease from 2020
√ Applicable□ Not applicable
Combined Balance Sheet
Unit: Yuan Currency: RMB
Item | 31 December 2019 | 1 January 2020 | Adjusted amount |
Current assets: | |||
Cash and equivalents | 1,246,901,218.99 | 1,246,901,218.99 | |
Transaction settlement funds | |||
Lending funds | |||
Held-for-trading financial assets | 71,450,000.00 | 71,450,000.00 | |
Derivative financial assets | |||
Bills receivable | |||
Accounts receivable | 198,409,249.19 | 198,409,249.19 | |
Receivables financing | 2,150,000.00 | 2,150,000.00 | |
Prepayment | 53,313,963.76 | 53,313,963.76 | |
Premium receivable | |||
Reinsurance premium receivable | |||
Reserves for reinsurance contract receivable | |||
Other receivables | 15,269,949.97 | 15,269,949.97 | |
Where: Interest receivable | |||
Dividend receivable | |||
Financial assets purchased under agreements to resell | |||
Inventories | 313,649,003.07 | 313,649,003.07 | |
Contract assets | |||
Held for sale assets | |||
Non-current assets due within one year | |||
Other current assets | 11,723,268.59 | 18,845,835.47 | 7,122,566.88 |
Total current assets | 1,912,866,653.57 | 1,919,989,220.45 | 7,122,566.88 |
Non-current assets: | |||
Loans and advances to customers | |||
Debt investment | |||
Other debt investment | |||
Long-term receivables | |||
Long-term equity investments | 14,728,003.68 | 14,728,003.68 | |
Investments in other equity instruments | |||
Other non-current financial assets | |||
Investment real estate | 71,622,083.18 | 71,622,083.18 |
Fixed assets | 550,329,145.07 | 550,329,145.07 | |
Construction in progress | 31,894,658.49 | 31,894,658.49 | |
Productive biological assets | |||
Oil and gas assets | |||
Right-of-use assets | |||
Intangible assets | 328,564,563.33 | 328,564,563.33 | |
Development expenses | |||
Goodwill | |||
Long-term prepaid expenses | 26,378,564.50 | 26,378,564.50 | |
Deferred income tax assets | 27,975,258.51 | 27,975,258.51 | |
Other non-current assets | 15,006,146.49 | 15,006,146.49 | |
Total non-current assets | 1,066,498,423.25 | 1,066,498,423.25 | |
Total assets | 2,979,365,076.82 | 2,986,487,643.7 | 7,122,566.88 |
Current liabilities: | |||
Short-term borrowings | 129,047,396.51 | 129,047,396.51 | |
Borrowings from central bank | |||
Placements from banks and other financial institutions | |||
Held-for-trading financial liabilities | |||
Derivative financial liabilities | |||
Bills payable | 41,830,948.53 | 41,830,948.53 | |
Accounts payable | 347,316,843.39 | 347,316,843.39 | |
Accounts received in advance | 40,913,490.55 | -40,913,490.55 | |
Contract liabilities | 50,216,613.89 | 50,216,613.89 | |
Financial assets sold under repurchase agreements | |||
Deposits from customers and other banks | |||
Brokerage for trading securities | |||
Brokerage for underwriting securities | |||
Employee benefits payable | 66,684,151.98 | 66,684,151.98 | |
Taxes payable | 71,833,700.61 | 71,833,700.61 | |
Other payables | 91,444,673.31 | 91,444,673.31 | |
Where: Interest payable | |||
Dividend payable | |||
Fees and commissions payable | |||
Reinsured accounts payable | |||
Held-for-sale liabilities | |||
Non-current liabilities due within one year | 85,258,247.69 | 85,258,247.69 | |
Other current liabilities | 1,948,803.22 | 1,948,803.22 |
Total current liabilities | 874,329,452.57 | 885,581,379.13 | 11,251,926.56 |
Non-current liabilities: | |||
Reserves for insurance contracts | |||
Long-term borrowings | |||
Bonds payable | |||
Where: Preference shares | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term payables | |||
Long-term employee benefits payable | |||
Estimated liabilities | 10,102,532.74 | 17,225,099.62 | 7,122,566.88 |
Deferred income | 19,743,036.56 | 8,491,110.00 | -11,251,926.56 |
Deferred income tax liabilities | 5,132,011.38 | 5,132,011.38 | |
Other non-current liabilities | |||
Total non-current liabilities | 34,977,580.68 | 30,848,221.00 | -4,129,359.68 |
Total liabilities | 909,307,033.25 | 916,429,600.13 | 7,122,566.88 |
Owner’s equity (or shareholders’ equity): | |||
Share capital | 201,269,560.00 | 201,269,560.00 | |
Other equity instruments | |||
Where: Preference shares | |||
Perpetual bonds | |||
Capital reserve | 835,353,615.48 | 835,353,615.48 | |
Less: Treasury shares | 15,769,051.20 | 15,769,051.20 | |
Other comprehensive income | -212,628.22 | -212,628.22 | |
Special reserve | |||
Surplus reserve | 100,634,780.00 | 100,634,780.00 | |
General risk provision | |||
Undistributed profit | 908,411,607.62 | 908,411,607.62 | |
Total equity attributable to the owners of the parent company | 2,029,687,883.68 | 2,029,687,883.68 | |
Minority equity | 40,370,159.89 | 40,370,159.89 | |
Total owners’ equity (or shareholders’ equity) | 2,070,058,043.57 | 2,070,058,043.57 | |
Total liabilities and owner's equity (or shareholders’ equity) | 2,979,365,076.82 | 2,986,487,643.70 | 7,122,566.88 |
Description on adjustment to relevant items:
□ Applicable√ Not applicable
Balance Sheet of Parent Company
Unit: Yuan Currency: RMB
Item | 31 December 2019 | 1 January 2020 | Adjusted amount |
Current assets: | |||
Cash and equivalents | 403,072,398.35 | 403,072,398.35 | |
Held-for-trading financial assets | 70,000,000.00 | 70,000,000.00 | |
Derivative financial assets | |||
Bills receivable | |||
Accounts receivable | 614,081,454.90 | 614,081,454.90 | |
Receivables financing | |||
Prepayment | 13,257,712.52 | 13,257,712.52 | |
Other receivables | 31,800,093.90 | 31,800,093.90 | |
Where: Interest receivable | |||
Dividend receivable | |||
Inventories | 157,614,679.78 | 157,614,679.78 | |
Contract assets | |||
Held for sale assets | |||
Non-current assets due within one year | |||
Other current assets | |||
Total current assets | 1,289,826,339.45 | 1,289,826,339.45 | |
Non-current assets: | |||
Debt investment | |||
Other debt investment | |||
Long-term receivables | |||
Long-term equity investments | 159,882,467.38 | 159,882,467.38 | |
Investments in other equity instruments | |||
Other non-current financial assets | |||
Investment real estate | 336,462,349.68 | 336,462,349.68 | |
Fixed assets | 283,156,520.47 | 283,156,520.47 | |
Construction in progress | 31,877,256.59 | 31,877,256.59 | |
Productive biological assets | |||
Oil and gas assets | |||
Right-of-use assets | |||
Intangible assets | 318,477,880.56 | 318,477,880.56 | |
Development expenses | |||
Goodwill | |||
Long-term prepaid expenses | 1,177,831.47 | 1,177,831.47 | |
Deferred income tax assets | 18,414,499.56 | 18,414,499.56 | |
Other non-current assets | 15,006,146.49 | 15,006,146.49 | |
Total non-current assets | 1,164,454,952.20 | 1,164,454,952.20 | |
Total assets | 2,454,281,291.65 | 2,454,281,291.65 | |
Current liabilities: | |||
Short-term borrowings | |||
Held-for-trading financial liabilities |
Derivative financial liabilities | |||
Bills payable | 41,830,948.53 | 41,830,948.53 | |
Accounts payable | 300,820,130.33 | 300,820,130.33 | |
Accounts received in advance | 13,628,235.50 | -13,628,235.50 | |
Contract liabilities | 12,060,385.40 | 12,060,385.40 | |
Employee benefits payable | 23,436,531.67 | 23,436,531.67 | |
Taxes payable | 49,102,562.13 | 49,102,562.13 | |
Other payables | 27,706,157.37 | 27,706,157.37 | |
Where: Interest payable | |||
Dividend payable | |||
Held-for-sale liabilities | |||
Non-current liabilities due within one year | 85,258,247.69 | 85,258,247.69 | |
Other current liabilities | 1,567,850.10 | 1,567,850.10 | |
Total current liabilities | 541,782,813.22 | 541,782,813.22 | |
Non-current liabilities: | |||
Long-term borrowings | |||
Bonds payable | |||
Where: Preference shares | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term payables | |||
Long-term employee benefits payable | |||
Estimated liabilities | |||
Deferred income | 8,491,110.00 | 8,491,110.00 | |
Deferred income tax liabilities | 4,986,605.71 | 4,986,605.71 | |
Other non-current liabilities | |||
Total non-current liabilities | 13,477,715.71 | 13,477,715.71 | |
Total liabilities | 555,260,528.93 | 555,260,528.93 | |
Owner’s equity (or shareholders’ equity): | |||
Share capital | 201,269,560.00 | 201,269,560.00 | |
Other equity instruments | |||
Where: Preference shares | |||
Perpetual bonds | |||
Capital reserve | 834,592,133.74 | 834,592,133.74 | |
Less: Treasury shares | 15,769,051.20 | 15,769,051.20 | |
Other comprehensive income | |||
Special reserve | |||
Surplus reserve | 100,634,780.00 | 100,634,780.00 | |
Undistributed profit | 778,293,340.18 | 778,293,340.18 | |
Total owners’ equity (or shareholders’ equity) | 1,899,020,762.72 | 1,899,020,762.72 |
Total liabilities and owner's equity (or shareholders’ equity) | 2,454,281,291.65 | 2,454,281,291.65 |
Description on adjustment to relevant items:
□ Applicable√ Not applicable
(4). Description on retrospective adjustment to previous comparative data for the first
implementation of new standards for revenues and new standards for lease from 2020
□ Applicable√ Not applicable
45. Others
□ Applicable√ Not applicable
VI Taxes
1. Major tax types and tax rates
Particulars on major tax types and tax rates
√ Applicable□ Not applicable
Tax type | Taxing basis | Tax rate |
Value added tax (“VAT”) | The output tax is calculated on the basis of the income from sales of products and taxable income from rendering of services calculated according to the provisions of the tax law. The difference between the output tax and the amount after deducting the input tax which is allowed to be deductible in the current period is the payable VAT. | 13%, 9%, 6% |
Consumption tax | Taxable sales (volume) | 15% |
Business tax | ||
Urban maintenance and construction tax | Actual turnover tax paid | 7%, 5% |
Enterprise income tax | Taxable income | [Note] |
Property tax | In case of ad valorem taxation, it is calculated and paid as per 1.2% of the remaining value after 30% of the original value of the property is deducted in a lump sum; in case of taxation according to lease, it is calculated and paid as per 12% of the rental income | 12%, 1.2% |
Education surcharge | Actual turnover tax paid | 3% |
Local education surcharge | Actual turnover tax paid | 2% |
[Note]: Descriptions on tax payers with different enterprise income tax rates
If there are taxpayers with different enterprise income tax rates, the disclosure willbe made for description
√ Applicable□ Not applicable
Name of taxpayer | Income tax rate (%) |
The Company | 15% |
Huzhou Niuke Technology Co., Ltd. | 20% |
Korea Younimi Cosmetics Co., Ltd. | Relevant taxes are calculated and paid according to local tax regulations in South Korea |
Hanna Cosmetics Co., Ltd. | Relevant taxes are calculated and paid according to local tax regulations in South Korea |
Hapsode Co., Ltd. | Relevant taxes are calculated and paid according to local tax regulations in South Korea |
HONGKONG KESHI TRADING LIMITED | Relevant taxes are calculated and paid according to local tax regulations in Hong Kong, China |
Hong Kong Xinghuo Industry Limited | Relevant taxes are calculated and paid according to local tax regulations in Hong Kong, China |
Hong Kong Wanyan Electronic Commerce Co., Limited | Relevant taxes are calculated and paid according to local tax regulations in Hong Kong, China |
Hong Kong Zhongwen Electronic Commerce Co., Limited | Relevant taxes are calculated and paid according to local tax regulations in Hong Kong, China |
Hong Kong Xuchen Trading Limited | Relevant taxes are calculated and paid according to local tax regulations in Hong Kong, China |
BOYA (Hong Kong) Investment Management Co., Limited | Relevant taxes are calculated and paid according to local tax regulations in Hong Kong, China |
Proya Europe SARL | Relevant taxes are calculated and paid according to local tax regulations in Luxembourg |
P.R.O CO., LTD. | Relevant taxes are calculated and paid according to local tax regulations in Japan |
Tax payers other than the above | 25% |
2. Tax preference
√ Applicable□ Not applicable
The Company was reviewed as the high-tech enterprise on 1 December 2020 and obtainedthe high-tech enterprise certificate, with the validity of certification of 3 years andthe grace period for enterprise income tax in 2020-2022. The Company was subject to theenterprise income tax at the preferential rate of 15% in 2020.According to theNotice of the Ministry of Finance and the State Taxation
Administration on the Implementation of Inclusive Tax Relief Policy for Small and MicroEnterprises(CS [2019] No.13) and theAnnouncement
of the State Taxation Administrationon Relevant Issues on the Implementation of Inclusive Tax Relief Policy for Small andMicro Enterprises(Announcement No. 2 of the State Taxation Administration in 2019),Huzhou Niuke Technology Co., Ltd. complies with the criteria for tax payment of smalland micro enterprises and would pay the enterprise income tax as per the tax rate of 20%in 2020.
In accordance with the provisions of theAnnouncement on Clarifying Policies forAccrual and Deduction of Value-Added Tax for Life Service Industryjointly issued by theMinistry of Finance and the State Taxation Administration (Announcement No. 87 of theMinistry of Finance and the State Taxation Administration in 2019), Hangzhou ProyaCommercial Management Co., Ltd., a subsidiary of the Company, complies with the conditionsfor general tax payers engaged in production and consumer-oriented service industries,and the input tax deductible in the current period plus 15% would be used for deductingthe tax payable from 1 October 2019 to 31 December 2021.
3. Others
□ Applicable√ Not applicable
VII Notes to the Items in Consolidated Financial Statements1 Cash and equivalents
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Cash on hand | 26,853.58 | 42,499.65 |
Cash at bank | 1,368,800,012.77 | 1,230,772,238.87 |
Other cash and equivalents | 47,827,774.58 | 16,086,480.47 |
Total | 1,416,654,640.93 | 1,246,901,218.99 |
Where: Total cash deposited outside China | 83,771,568.02 | 27,200,237.51 |
Other particulars
At the end of the period, the scope of restricted use covered the margin for fixed-termdeposits of transformer of RMB 293,481.72 in bank deposits, as well as the landconstruction deposit of RMB 7,036,404.33, L/C deposit of RMB 7,000,000.00, ETC vehicledeposit of RMB 69,000.00, and Tmall and Alipay deposits of RMB 405,000.00 in other monetarycapitals.At the beginning of the period, the scope of restricted use covered the structured
deposits of RMB 140,000,000.00 and margin for fixed-term deposits of transformer of RMB293,481.72 in bank deposits, as well as the land construction deposit of RMB 6,909,952.20and Tmall and Alipay deposits of RMB 605,000.00 in other monetary capitals.
2 Held-for-trading financial assets
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Financial assets at fair value through current profit or loss | 71,450,000.00 | |
Where: | ||
Wealth management products | 71,450,000.00 | |
Financial asset designated as at fair value through profit or loss | ||
Where: | ||
Total | 71,450,000.00 |
Other particulars:
□ Applicable√ Not applicable
3 Derivative financial assets
□ Applicable√ Not applicable
4 Notes receivable
(1). Notes receivable presented by category
□ Applicable√ Not applicable
(2). Notes receivable pledged by the Company at the end of the period
□ Applicable√ Not applicable
(3). Notes receivable endorsed or discounted by the Company at the end of the period
but not due yet at the balance sheet date
□ Applicable√ Not applicable
(4). Notes transferred by the Company into accounts receivable at the end of the period
due to the note issuer’s failure of performance
□ Applicable√ Not applicable
(5). Disclosure by accruing method for bad debt provisions
□ Applicable√ Not applicable
Bad debt provisions accrued separately:
□ Applicable√ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable√ Not applicable
If bad debt provisions are accrued according to the general model of expected credit losses,please refer to the disclosure on other receivables:
□ Applicable√ Not applicable
(6). Particulars on bad debt provisions
□ Applicable√ Not applicable
(7). Particulars on notes receivable actually written-off in the current period
□ Applicable√ Not applicable
Other particulars
□ Applicable√ Not applicable
5 Accounts receivable
(1). Disclosure by account age
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Account age | Carrying balance at the end of the period |
Within 1 year | |
Where: Subitems within 1 year | |
Sub-total within 1 year | 298,778,494.35 |
1-2 years | 14,593,734.48 |
2-3 years | 4,710,807.60 |
Above 3 years | 1,840,662.14 |
3-4 years | |
4-5 years | |
Above 5 years | |
Total | 319,923,698.57 |
(2). Disclosure by accruing method for bad debt provisions
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Category | Closing balance | Opening balance | ||||||||
Carrying balance | Bad debt provisions | Carrying value | Carrying balance | Bad debt provisions | Carrying value | |||||
Amount | Percentage (%) | Amount | Accruing percentage (%) | Amount | Percentage (%) | Amount | Accruing percentage (%) | |||
Bad debt provisions accrued separately | 16,916,210.88 | 5.29 | 16,916,210.88 | 100.00 | 130,187.88 | 0.06 | 130,187.88 | 100.00 | ||
Where: | ||||||||||
Bad debt provisions accrued according to the combination | 303,007,487.69 | 94.71 | 18,129,068.11 | 5.98 | 284,878,419.58 | 212,019,218.48 | 99.94 | 13,609,969.29 | 6.42 | 198,409,249.19 |
Where: | ||||||||||
Total | 319,923,698.57 | / | 35,045,278.99 | / | 284,878,419.58 | 212,149,406.36 | / | 13,740,157.17 | / | 198,409,249.19 |
Bad debt provisions accrued separately:
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Name | Closing balance | |||
Carrying balance | Bad debt provisions | Accruing percentage (%) | Accruing reason | |
Bad debt provisions accrued separately | 16,916,210.88 | 16,916,210.88 | 100.00 | Not expected to be recovered |
Total | 16,916,210.88 | 16,916,210.88 | 100.00 | / |
Description on bad debt provisions accrued separately:
□ Applicable√ Not applicable
Bad debt provisions accrued according to the combination:
√ Applicable□ Not applicable
Items of portfolio provision: Account age combination
Unit: Yuan Currency: RMB
Name | Closing balance | ||
Accounts receivable | Bad debt provisions | Accruing percentage (%) | |
Account age combination | 303,007,487.69 | 18,129,068.11 | 5.98 |
Total | 303,007,487.69 | 18,129,068.11 | 5.98 |
Recognition standards and descriptions on bad debts in portfolio provision:
√ Applicable□ Not applicable
In the account age combination, accounts receivable with bad debt provisions werewithdrawn according to the comparison of account age loss rate
Account age | Closing balance |
Carrying balance | Bad debt provisions | Accruing percentage (%) | |
Within 1 year | 297,087,692.51 | 14,854,383.70 | 5.00 |
1-2 years | 2,702,251.55 | 810,675.46 | 30.00 |
2-3 years | 1,507,069.37 | 753,534.69 | 50.00 |
Above 3 years | 1,710,474.26 | 1,710,474.26 | 100.00 |
Subtotal | 303,007,487.69 | 18,129,068.11 | 5.98 |
If bad debt provisions are accrued according to the general model of expected credit losses,please refer to the disclosure on other receivables:
□ Applicable√ Not applicable
(3). Particulars on bad debt provisions
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Category | Opening balance | Change of the current period | Closing balance | |||
Accrued | Recovered or reversed | Resold or written-off | Other changes | |||
Bad debt provisions accrued separately | 130,187.88 | 16,786,023.00 | 16,916,210.88 | |||
Bad debt provisions accrued according to the combination | 13,609,969.29 | 7,506,093.38 | 3,593,624.01 | 606,629.45 | 18,129,068.11 | |
Total | 13,740,157.17 | 24,292,116.38 | 3,593,624.01 | 606,629.45 | 35,045,278.99 |
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable√ Not applicable
(4). Particulars on accounts receivable actually written-off in the current period
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Written-off amount |
Accounts receivable actually written-off | 3,593,624.01 |
Writing-off of significant accounts receivable
□ Applicable√ Not applicable
Description on writing-off of accounts receivable:
□ Applicable√ Not applicable
(5). Particulars on top 5 accounts receivable in terms of the balance at the end of the
period based on debtors
√ Applicable□ Not applicable
Company name | Carrying balance | Proportion (%) of the balance of accounts receivable | Bad debt provisions |
Beijing Jingdong Century Trading Co., Ltd. | 66,863,696.90 | 20.90 | 3,343,184.85 |
Zhejiang Youcaihua Network Technology Co., Ltd. | 35,000,003.20 | 10.94 | 1,750,000.16 |
Quzhou Mingbo Century Trading Co., Ltd. [Note] | 24,108,668.27 | 7.54 | 1,205,433.41 |
Vipshop (China) Co., Ltd. | 18,795,189.86 | 5.87 | 939,759.49 |
Shandong Chengtian Trading Co., Ltd. | 13,339,122.10 | 4.17 | 666,956.11 |
Subtotal | 158,106,680.33 | 49.42 | 7,905,334.02 |
[Note] The amount of Quzhou Mingbo Century Trading Co., Ltd. refers to theconsolidated amount of Quzhou Mingbo Century Trading Co., Ltd., Quzhou Jiaomei TradingCo., Ltd., Quzhou Yumei Trading Co., Ltd. and Quzhou Ruoxi Cosmetics Co., Ltd. under thecontrol of the same person.
(6). Accounts receivable derecognized due to the transfer of financial assets
□ Applicable√ Not applicable
(7). Amount of assets and liabilities formed due to the transfer and continuous
involvement of accounts receivable
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
6 Receivables financing
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Bills receivable | 5,531,997.32 | 2,150,000.00 |
Total | 5,531,997.32 | 2,150,000.00 |
Changes in receivables financing during the current period and changes in fair value:
□ Applicable√ Not applicable
If bad debt provisions are accrued according to the general model of expected credit losses,please refer to the disclosure on other receivables:
□ Applicable√ Not applicable
Other particulars:
√ Applicable□ Not applicable
Notes receivable endorsed or discounted by the Company at the end of the period andunexpired at the balance sheet date
Item | Amount derecognized at the end of the period |
Bank acceptance | 2,750,000.00 |
Subtotal | 2,750,000.00 |
The acceptor of bank acceptance is the commercial bank. Due to higher credit ofcommercial bank, the possibility of nonpayment when the banker acceptance is expired islow. Therefore, the Company has terminated the recognition for the endorsed or discountedbank acceptance. However, in case of nonpayment when such bank acceptance is expired,as stipulated in theLaw of Negotiable Instruments, the Company will still bear the jointliability for the bearer.
7 Advance payment
(1). Advance payment presented by account age
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Account age | Closing balance | Opening balance | ||
Amount | Percentage (%) | Amount | Percentage (%) | |
Within 1 year | 81,149,897.32 | 98.07 | 52,483,348.55 | 98.44 |
1-2 years | 802,393.47 | 0.97 | 830,615.21 | 1.56 |
2-3 years | 790,525.13 | 0.96 | ||
Above 3 years | ||||
Total | 82,742,815.92 | 100.00 | 53,313,963.76 | 100.00 |
Description on the reasons for failure to settle the advance payment with an account ageover one year and a significant amount:
None
(2). Particulars on top 5 advance payments in terms of the balance at the end of the periodaccording to the concentration of parties to which the advance payments are made
√ Applicable□ Not applicable
Company name | Carrying balance | Percentage (%) in the balance of prepayment |
Zhuhai Healthlong Biotechnology Co., Ltd. | 21,432,452.28 | 25.90 |
Beauty Hi-tech Innovation Co., Ltd. | 9,196,896.04 | 11.12 |
Alipay (China) Network Technology Co., Ltd. | 6,201,918.15 | 7.50 |
Shanghai Mamamiya Mutual Entertainment Network Technology Co., Ltd. | 4,443,396.10 | 5.36 |
Shanghai Xunmeng Information Technology Co., Ltd. | 3,490,744.72 | 4.22 |
Subtotal | 44,765,407.29 | 54.10 |
Other particulars
□ Applicable√ Not applicable
8 Other receivablesPresented by item
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Interest receivable | ||
Dividend receivable | ||
Other receivables | 48,733,527.35 | 15,269,949.97 |
Total | 48,733,527.35 | 15,269,949.97 |
Other particulars:
□ Applicable√ Not applicable
Interest receivable
(1). Classification of interest receivable
□ Applicable√ Not applicable
(2). Important overdue interest
□ Applicable√ Not applicable
(3). Particulars on accruing of bad debt provisions
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
Dividend receivable
(1). Dividend receivable
□ Applicable√ Not applicable
(2). Important dividend receivable with the account age over one year
□ Applicable√ Not applicable
(3). Particulars on accruing of bad debt provisions
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
Other receivables
(1). Disclosure by account age
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Account age | Carrying balance at the end of the period |
Within 1 year | |
Where: Subitems within 1 year | |
Sub-total within 1 year | 42,822,248.80 |
1-2 years | 10,571,067.64 |
2-3 years | 1,305,284.32 |
Above 3 years | 1,009,369.58 |
3-4 years | |
4-5 years | |
Above 5 years | |
Total | 55,707,970.34 |
(2). Particulars on classification by amount nature
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Amount nature | Carrying balance at the end of the period | Carrying balance at the beginning of the period |
Deposit and margin | 15,177,436.77 | 10,024,373.00 |
Provisional receivables | 39,073,769.81 | 6,892,173.88 |
Petty cash | 712,751.90 | 539,361.62 |
Others | 744,011.86 | 27,000.00 |
Total | 55,707,970.34 | 17,482,908.50 |
(3). Particulars on accruing of bad debt provisions
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Bad debt provisions | Phase 1 | Phase 2 | Phase 3 | Total |
Expected | Expected credit | Expected credit |
credit losses in the next 12 months | loss for the entire duration (no credit impairment occurred) | loss for the entire duration (credit impairment occurred) | ||
Balance as at 1 January 2020 | 716,693.59 | 514,051.50 | 982,213.44 | 2,212,958.53 |
Balance as at 1 January 2020 in the current period | ||||
-- Transferred into Phase 2 | -528,553.38 | 528,553.38 | ||
-- Transferred into Phase 3 | -391,585.29 | 391,585.29 | ||
-- Reversed into Phase 2 | ||||
-- Reversed into Phase 1 | ||||
Accrued in the current period | -376,997.57 | -25,638.37 | 19,241.95 | -383,393.99 |
Reserved in the current period | ||||
Resold in the current period | ||||
Written-off in the current period | 56,484.22 | 56,484.22 | ||
Other changes | 2,329,968.32 | 2,545,939.07 | 325,455.28 | 5,201,362.67 |
Balance as at 31 December 2020 | 2,141,110.96 | 3,171,320.29 | 1,662,011.74 | 6,974,442.99 |
Particulars on the significant changes in the carrying balance of other receivables in which changes inloss provisions occurred in the current period:
□ Applicable√ Not applicable
The basis for adopting the amount of bad debt provisions accrued for the current periodand the assessment on whether the credit risk of financial instruments increasedsignificantly:
□ Applicable√ Not applicable
(4). Particulars on bad debt provisions
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Category | Opening balance | Change of the current period | Closing balance | |||
Accrued | Recovered or reversed | Resold or written-off | Other changes | |||
Account age | 2,212,958.53 | -383,393.99 | 56,484.22 | 5,201,362.67 | 6,974,442.99 |
combination | ||||||
Total | 2,212,958.53 | -383,393.99 | 56,484.22 | 5,201,362.67 | 6,974,442.99 |
Significant bad debt provision amounts reversed or recovered in the current period:
□ Applicable√ Not applicable
(5). Particulars on other receivables actually written-off in the current period
□ Applicable√ Not applicable
(6). Particulars on top 5 other receivables in terms of the balance at the end of the
period based on debtors
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Company name | Amount nature | Closing balance | Account age | Percentage (%) in the total balance at the end of the period of other receivables | Bad debt provisions Closing balance |
EURL PHARMATICA [Note 1] | Provisional receivables | 24,167,639.75 | Within 1 year | 43.38 | 1,208,381.99 |
SIKEROM EUROPE GMBH | Provisional receivables | 8,204,225.54 | Within 1 year | 14.73 | 410,211.28 |
Hangzhou Property Maintenance Fund Management Center | Deposit and margin | 4,708,614.72 | 1-2 years | 8.45 | 1,412,584.42 |
Shanghai Zhicheng Heli Network Media Development Co., Ltd. | Provisional receivables | 1,500,000.00 | [Note 2] | 2.69 | 443,955.00 |
Zhejiang ZTO Jixiang Express Service Co., Ltd. | Provisional receivables | 1,412,036.00 | Within 1 year | 2.53 | 70,601.80 |
Total | / | 39,992,516.01 | / | 71.78 | 3,545,734.49 |
[Note 1] The amount of EURL PHARMATICA refers to the consolidated amount of EURLPHARMATICA, PARISEZHAN HK LIMITED, SARL ORTUS and S.A.S AREDIS under the control of the
same person.[Note 2] Within 1 year: RMB 24,180.00; 1-2 years: RMB 1,475,820.00.
(7). Receivables involving government grants
□ Applicable√ Not applicable
(8). Other receivables derecognized due to the transfer of financial assets
□ Applicable√ Not applicable
(9). Amount of assets and liabilities formed due to the transfer and continuous
involvement of other receivables
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
9 Inventories
(1). Classification of inventories
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance | ||||
Carrying balance | Inventory depreciation provisions/impairment provisions for contract performance cost | Carrying value | Carrying balance | Inventory falling price reserves/impairment provisions for contract performance cost | Carrying value | |
Raw materials | 25,023,198.10 | 790,191.51 | 24,233,006.59 | 16,474,644.08 | 801,848.85 | 15,672,795.23 |
Work-in-process | 19,699,809.41 | 333,215.45 | 19,366,593.96 | 8,767,643.14 | 1,331,381.19 | 7,436,261.95 |
Finished products | 402,419,036.40 | 21,221,419.14 | 381,197,617.26 | 280,160,075.99 | 16,867,854.46 | 263,292,221.53 |
Revolving materials | ||||||
Expendable biological assets | ||||||
Contract performance cost | ||||||
Packaging materials | 32,988,469.32 | 1,383,453.99 | 31,605,015.33 | 18,042,228.43 | 1,623,844.55 | 16,418,383.88 |
Low-value consumables | 2,643,028.64 | 268,617.88 | 2,374,410.76 | 1,918,233.68 | 95,937.86 | 1,822,295.82 |
Purchased gift | 11,494,429.58 | 1,630,055.73 | 9,864,373.85 | 12,946,644.82 | 3,939,600.16 | 9,007,044.66 |
Total | 494,267,971.45 | 25,626,953.70 | 468,641,017.75 | 338,309,470.14 | 24,660,467.07 | 313,649,003.07 |
(2). Inventory falling price reserves and impairment provisions for contract performancecost
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Opening balance | Increase amount of the current period | Decrease amount of the current period | Closing balance | ||
Accrued | Others | Reversed or resold | Others | |||
Raw materials | 801,848.85 | 695,497.96 | 166.09 | 707,321.39 | 790,191.51 | |
Work-in-process | 1,331,381.19 | 182,647.57 | 1,180,813.31 | 333,215.45 | ||
Finished products | 16,867,854.46 | 24,751,870.03 | 378,553.97 | 20,776,859.32 | 21,221,419.14 | |
Revolving materials | ||||||
Expendable biological assets | ||||||
Contract performance cost | ||||||
Packaging materials | 1,623,844.55 | 1,057,784.09 | 1,298,174.65 | 1,383,453.99 | ||
Low-value consumables | 95,937.86 | 178,070.31 | 17,532.14 | 22,922.43 | 268,617.88 | |
Purchased gift | 3,939,600.16 | 1,368,735.54 | 3,678,279.97 | 1,630,055.73 | ||
Total | 24,660,467.07 | 28,234,605.50 | 396,252.20 | 27,664,371.07 | 25,626,953.70 |
Other increase of RMB 396,252.20 of inventory falling price reserve in the currentperiod came from the equity of Shanghai Healthlong Biochemical Technology Co., Ltd., andits inventory falling price reserve was transferred in correspondingly.At the end of the current period, the net realizable value of some products was lowerthan the corresponding cost, so the inventory falling price reserve shall be withdrawnin accordance with the difference between the cost and the net realizable value.
(3). Description on the capitalization amount of the borrowing expenses included in the
balance of inventories at the end of the period
□ Applicable√ Not applicable
(4). Description of amortization amount of the contract performance cost in the current
period
□ Applicable√ Not applicable
Other particulars
□ Applicable√ Not applicable
10 Contract assets
(1). Contract assets
□ Applicable√ Not applicable
(2). Amount of and reasons for material changes in the carrying value in the Reporting
Period
□ Applicable√ Not applicable
(3). Impairment provisions accrued from the contract assets in the current period
□ Applicable√ Not applicable
If bad debt provisions are accrued according to the general model of expected creditlosses, please refer to the disclosure on other receivables:
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
11 Held-for-sale assets
□ Applicable√ Not applicable
12 Non-current assets due within one year
□ Applicable√ Not applicable
Important debt investment and other debt investment at the end of the period:
□ Applicable√ Not applicable
Other particularsNone
13 Other current assets
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Contract acquisition cost | ||
Return cost receivable | 4,434,684.01 | 7,122,566.88 |
VAT input tax to be deducted | 24,162,220.64 | 7,126,880.88 |
Advance payment of taxes | 6,638,906.62 | 4,596,387.71 |
Total | 35,235,811.27 | 18,845,835.47 |
Other particularsRefer to the particulars of V.44 in “Section XI Financial Report” of this report forthe difference between the opening balance and closing balance of prior period (31December 2019).
14 Debt investment
(1). Particulars on debt investment
□ Applicable√ Not applicable
(2). Important debt investment at the end of the period
□ Applicable√ Not applicable
(3). Particulars on accruing of impairment provisions
□ Applicable√ Not applicable
The basis for adopting the amount of impairment provisions accrued for the current period and theassessment on whether the credit risk of financial instruments increased significantly:
□ Applicable√ Not applicable
Other particulars
□ Applicable√ Not applicable
15 Other debt investments
(1). Particulars on other debt investments
□ Applicable√ Not applicable
(2). Other important debt investments at the end of the period
□ Applicable√ Not applicable
(3). Particulars on accruing of impairment provisions
□ Applicable√ Not applicable
The basis for adopting the amount of impairment provisions accrued for the current period and theassessment on whether the credit risk of financial instruments increased significantly:
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
16 Long-term receivables
(1). Long-term receivables
□ Applicable√ Not applicable
(2). Particulars on accruing of bad debt provisions
□ Applicable√ Not applicable
The basis for adopting the amount of bad debt provisions accrued for the current period and theassessment on whether the credit risk of financial instruments increased significantly:
□ Applicable√ Not applicable
(3). Long-term receivables derecognized due to the transfer of financial assets
□ Applicable√ Not applicable
(4). Amount of assets and liabilities formed due to the transfer and continuousinvolvement of long-term receivables
□ Applicable√ Not applicable
Other particulars
□ Applicable√ Not applicable
17 Long-term equity investment
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Invested company | Opening balance | Change of the current period | Closing balance | Balance of impairment provisions at the end of the period | |||||||
Additional investment | Withdrawn investment | Investment gains and losses recognized under the equity method | Adjustment to other comprehensive income | Other equity changes | Declaration on distribution of cash dividends or profits | Accruing of impairment provisions | Others | ||||
I. Joint venture | |||||||||||
Huzhou Panrui Industrial Investment Partnership (Limited Partnership) | 3,314,489.57 | -7,859.00 | 3,306,630.57 | ||||||||
Sub-total | 3,314,489. | -7,859.00 | 3,306,630. |
57 | 57 | ||||||||||
II. Associate | |||||||||||
Xiongke Culture Media (Hangzhou) Co., Ltd. | 2,999,955.82 | -14,444.47 | 2,985,511.35 | ||||||||
Beijing Mitangpai Cosmetics Co., Ltd. [Note 1] | |||||||||||
Ningbo Segu Brand Management Co., Ltd. [Note 2] | 2,574,740.38 | 1,861,328.48 | -713,411.90 | ||||||||
Metis Info Tech (Guangzhou) Co., LTD. | 5,838,817.91 | 465,612.87 | 6,304,430.78 | ||||||||
Jiaxing Woyong Investment Partnership (Limited Partnershi | 46,000,000.00 | -376,513.10 | 45,623,486.90 |
p) | |||||||||||
Sub-total | 11,413,514.11 | 46,000,000.00 | 1,861,328.48 | -638,756.60 | 54,913,429.03 | ||||||
Total | 14,728,003.68 | 46,000,000.00 | 1,861,328.48 | -646,615.60 | 58,220,059.60 |
Other particulars
[Note 1] The original investment, by the Company, on Beijing Mitangpai Cosmetics Co.,Ltd. was RMB 5,638,295.00, the investment gains and losses recognized under the equitymethod was RMB -1,561,584.17, and the accruing of impairment provisions amounted to RMB4,076,710.83. This company was canceled in August 2020.
[Note 2] The Company transferred 35% equity of Ningbo Segu Brand Management Co., Ltd.to Liu Wei at a consideration of RMB 1.75 million in November 2020, and the investmentincome of RMB -111,328.48 was recognized.
18 Investments in other equity instruments
(1). Particulars on other equity instrument investments
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Hangzhou Regenovo Biotechnology., Ltd. | 20,580,000.00 | |
Total | 20,580,000.00 |
(2). Particulars on non-trading equity instrument investment
□ Applicable√ Not applicable
Other particulars:
√ Applicable□ Not applicable
Based on the strategic investment purpose, the Company made foreign equity investment,and the investee will obtain the investment of the Company as equity instrument. Therefore,this part of equity instrument investment was designated, by the Company, as financialassets measured at fair value through other comprehensive income.19 Other non-current financial assets
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
20 Investment real estateMeasurement model of investment real estate
(1). Investment real estate applying cost measurement model
Unit: Yuan Currency: RMB
Item | Buildings and constructions | Land use rights | Construction in progress | Total |
I. Original carrying value | ||||
1. Balance at the beginning of the period | 73,788,298.77 | 73,788,298.77 | ||
2. Increase amount of the current period | 3,071,733.33 | 3,071,733.33 | ||
(1) Acquisition | ||||
(2) Transfer in of inventories\fixed assets\projects under construction | 3,071,733.33 | 3,071,733.33 | ||
(3) Increase for business combination | ||||
3. Decrease amount of the current period | ||||
(1) Disposal | ||||
(2) Other transfer out | ||||
4. Balance at the end of the period | 76,860,032.10 | 76,860,032.10 | ||
II. Accumulated depreciation and accumulated amortization | ||||
1. Balance at the beginning of the period | 2,166,215.59 | 2,166,215.59 | ||
2. Increase amount of the current period | 2,456,206.41 | 2,456,206.41 | ||
(1) Accrual or amortization | 2,456,206.41 | 2,456,206.41 | ||
3. Decrease amount of the current period | ||||
(1) Disposal | ||||
(2) Other transfer out | ||||
4. Balance at the end of the period | 4,622,422.00 | 4,622,422.00 | ||
III. Impairment provisions | ||||
1. Balance at the beginning of the period | ||||
2. Increase amount of the current period | ||||
(1) Accruing | ||||
3. Decreased amount in the current period | ||||
(1) Disposal | ||||
(2) Other transfer out | ||||
4. Balance at the end |
of the period | ||||
IV. Carrying value | ||||
1. Carrying value at the end of the period | 72,237,610.10 | 72,237,610.10 | ||
2. Carrying value at the beginning of the period | 71,622,083.18 | 71,622,083.18 |
(2). Investment real estate with the property ownership certificate unsettled
□ Applicable√ Not applicable
Other particulars
□ Applicable√ Not applicable
21 Fixed assetsPresented by item
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Fixed assets | 565,864,152.62 | 550,329,145.07 |
Disposal of fixed assets | ||
Total | 565,864,152.62 | 550,329,145.07 |
Other particulars:
□ Applicable√ Not applicable
Fixed assets
(1). Particulars on fixed assets
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Property and buildings | Machinery and equipment | Means of transportation | General equipment | Total |
I. Original carrying value: | |||||
1. Balance at the beginning of the period | 512,551,045.14 | 154,267,432.04 | 17,017,117.58 | 55,344,021.49 | 739,179,616.25 |
2. Increase amount of the current period | 21,138,093.20 | 23,392,008.60 | 4,619,284.66 | 7,242,158.10 | 56,391,544.56 |
(1) Acquisitio | 7,666,292.13 | 3,690,879.37 | 3,928,467.69 | 15,285,639.19 |
n | |||||
(2) Transfer-in from construction in progress | 21,138,093.20 | 15,725,716.47 | 1,617,977.34 | 38,481,787.01 | |
(3) Increase for business combination | 928,405.29 | 1,695,713.07 | 2,624,118.36 | ||
3. Decrease amount of the current period | 6,837.61 | 411,428.99 | 335,243.75 | 753,510.35 | |
(1) Disposal or scraping | 6,837.61 | 411,428.99 | 335,243.75 | 753,510.35 | |
4. Balance at the end of the period | 533,689,138.34 | 177,652,603.03 | 21,224,973.25 | 62,250,935.84 | 794,817,650.46 |
II. Accumulative depreciation | |||||
1. Balance at the beginning of the period | 72,724,807.35 | 87,465,399.02 | 10,683,650.74 | 17,976,614.07 | 188,850,471.18 |
2. Increase amount of the current period | 16,496,264.74 | 14,109,195.89 | 2,209,396.57 | 8,000,920.43 | 40,815,777.63 |
(1) Accruing | 16,496,264.74 | 14,109,195.89 | 1,921,346.50 | 6,963,029.56 | 39,489,836.69 |
Other transfer-in [Note] | 288,050.07 | 1,037,890.87 | 1,325,940.94 | ||
3. Decrease amount of | 6,170.94 | 387,106.96 | 319,473.07 | 712,750.97 |
the current period | |||||
(1) Disposal or scraping | 6,170.94 | 387,106.96 | 319,473.07 | 712,750.97 | |
4. Balance at the end of the period | 89,221,072.09 | 101,568,423.97 | 12,505,940.35 | 25,658,061.43 | 228,953,497.84 |
III. Impairment provisions | |||||
1. Balance at the beginning of the period | |||||
2. Increase amount of the current period | |||||
(1) Accruing | |||||
3. Decrease amount of the current period | |||||
(1) Disposal or scraping | |||||
4. Balance at the end of the period | |||||
IV. Carrying value | |||||
1. Carrying value at the end of the period | 444,468,066.25 | 76,084,179.06 | 8,719,032.90 | 36,592,874.41 | 565,864,152.62 |
2. Carrying value at the beginning | 439,826,237.79 | 66,802,033.02 | 6,333,466.84 | 37,367,407.42 | 550,329,145.07 |
[Note] Other transfer-in of original value of fixed assets of RMB 2,624,118.36 and othertransfer-in of accumulated depreciation of RMB 1,325,940.94 came from the equity ofShanghai Healthlong Biochemical Technology Co., Ltd., and its original value of fixedassets and accumulated depreciation were transferred in correspondingly.
(2). Particulars on temporary idle fixed assets
□ Applicable√ Not applicable
(3). Particulars on fixed assets leased in under financing leases
□ Applicable√ Not applicable
(4). Fixed assets leased out under operating leases
□ Applicable√ Not applicable
(5). Particulars on fixed assets with the property ownership certificate unsettled
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
Disposal of fixed assets
□ Applicable√ Not applicable
22 Construction in progressPresented by item
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
of theperiodItem
Item | Closing balance | Opening balance |
Construction in progress | 47,324,523.36 | 31,894,658.49 |
Engineering materials | ||
Total | 47,324,523.36 | 31,894,658.49 |
Other particulars:
□ Applicable√ Not applicable
Construction in progress
(1). Particulars on projects under construction
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance | ||||
Carrying balance | Impairment provisions | Carrying value | Carrying balance | Impairment provisions | Carrying value |
Decoration works | 1,725,308.02 | 1,725,308.02 | 10,299,774.68 | 10,299,774.68 | ||
Make-up factory | 28,236,822.35 | 28,236,822.35 | 9,919,160.47 | 9,919,160.47 | ||
Proya Building | ||||||
Other miscellaneous works | 17,362,392.99 | 17,362,392.99 | 11,675,723.34 | 11,675,723.34 | ||
Total | 47,324,523.36 | 47,324,523.36 | 31,894,658.49 | 31,894,658.49 |
(2). Changes in important projects under construction in the current period
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Items | Budget | Opening balance | Increase amount of the current period | Amount of fixed assets transferred in the current period | Other decrease amounts in the current period | Closing balance | Proportion of cumulative investment in the project to the budget (%) | Progress of works | Accumulated amount of interest capitalization | Where: Amount of interest capitalization in the current period | Interest capitalization rate (%) in the current period | Source of fund |
Proya Building | RMB 458,936,300 | 23,927,348.65 | 23,927,348.65 | 82.22 | 100.00% | 9,206,186.05 | Self-raised | |||||
Make-up factory | 9,919,160.47 | 36,937,789.50 | 5,271,730.94 | 13,348,396.68 | 28,236,822.35 | 89.92 | 96.47% | Self-raised |
Total | RMB 458,936,300 | 9,919,160.47 | 60,865,138.15 | 29,199,079.59 | 13,348,396.68 | 28,236,822.35 | / | / | 9,206,186.05 | / | / |
[Note] Other decreases in the current period were transferred long-term prepaid expenses.
(3). Particulars on impairment provisions accrued for projects under construction in thecurrent period
□ Applicable√ Not applicable
Other particulars
□ Applicable√ Not applicable
Engineering materials
(1). Particulars on engineering materials
□ Applicable√ Not applicable
23 Productive biological assets
(1). Productive biological assets applying cost measurement model
□ Applicable√ Not applicable
(2). Productive biological assets applying fair value measurement model
□ Applicable√ Not applicable
Other particulars
□ Applicable√ Not applicable
24 Oil and gas assets
□ Applicable√ Not applicable
25 Right-of-use assets
□ Applicable√ Not applicable
26 Intangible assets
(1). Particulars on intangible assets
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Land use rights | Software | Patent right | Unpatented technology | Customer resources | Trademark right | Total |
I. Original carrying value | |||||||
1. Balance at the beginnin | 376,212,928.47 | 18,390,998.71 | 420,000.00 | 532,600.00 | 12,833,684.00 | 120,640.00 | 408,510,851.18 |
g of the period | |||||||
2. Increase amount of the current period | 1,168,132.13 | 126,900.00 | 16,491.75 | 1,311,523.88 | |||
(1) Acquisition | 740,165.52 | 16,491.75 | 756,657.27 | ||||
(2) R&D | |||||||
(3) Increase for business combination | 427,966.61 | 126,900.00 | 554,866.61 | ||||
3. Decrease amount of the current period | |||||||
(1) Disposal | |||||||
4. Balance at the end of the period | 376,212,928.47 | 19,559,130.84 | 420,000.00 | 659,500.00 | 12,833,684.00 | 137,131.75 | 409,822,375.06 |
2. Cumulative amortization | |||||||
1. Balance at the beginning of the period | 59,724,558.17 | 16,060,001.34 | 420,000.00 | 525,265.00 | 3,208,421.00 | 8,042.34 | 79,946,287.85 |
2. Increase amount of | 9,230,473.82 | 1,704,823.03 | 3,260.00 | 4,277,894.67 | 16,311.72 | 15,232,763.24 |
the current period | |||||||
(1) Accruing | 9,230,473.82 | 1,454,410.50 | 3,260.00 | 4,277,894.67 | 16,311.72 | 14,982,350.71 | |
22) Other transfer-in [Note] | 250,412.53 | 250,412.53 | |||||
3. Decrease amount of the current period | |||||||
(1) Disposal | |||||||
4. Balance at the end of the period | 68,955,031.99 | 17,764,824.37 | 420,000.00 | 528,525.00 | 7,486,315.67 | 24,354.06 | 95,179,051.09 |
III. Impairment provisions | |||||||
1. Balance at the beginning of the period | |||||||
2. Increase amount of the current period | |||||||
(1) Accruing | |||||||
3. Decrease amount of |
the current period | |||||||
(1) Disposal | |||||||
4. Balance at the end of the period | |||||||
IV. Carrying value | |||||||
1. Carrying value at the end of the period | 307,257,896.48 | 1,794,306.47 | 130,975.00 | 5,347,368.33 | 112,777.69 | 314,643,323.97 | |
2. Carrying value at the beginning of the period | 316,488,370.30 | 2,330,997.37 | 7,335.00 | 9,625,263.00 | 112,597.66 | 328,564,563.33 |
[Note] Other transfer-in of original value of intangible assets of RMB 554,866.61and other transfer-in of accumulated amortization of RMB 250,412.53 came from the equityof Shanghai Healthlong Biochemical Technology Co., Ltd., and its original value ofintangible assets and accumulated amortization were transferred in correspondingly.The proportion of intangible assets formed by the Company's internal R&D at the end ofthe current period in the balance of intangible assets was 0
(2). Particulars on land use rights with the property ownership certificate unsettled
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
27 Development expenses
□ Applicable√ Not applicable
28 Goodwill
(1). Original carrying value of goodwill
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Name of invested company or event forming goodwill | Opening balance | Increase of the current period | Decrease of the current period | Closing balance | ||
Formed due to business combination | Disposal | |||||
Shanghai Healthlong Biochemical Technology Co., Ltd. | 31,034,161.20 | 31,034,161.20 | ||||
Total | 31,034,161.20 | 31,034,161.20 |
(2). Impairment provisions of goodwill
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Name of invested company or event forming goodwill | Opening balance | Increase of the current period | Decrease of the current period | Closing balance | ||
Accrued | Disposal | |||||
Shanghai Healthlong Biochemical Technology Co., Ltd. | ||||||
Total |
(3). Information regarding the asset group or the combination of asset groups to which
goodwill belongs
√ Applicable□ Not applicable
Composition of asset group or combination of asset groups | Operating assets and liabilities of Shanghai Healthlong Biochemical Technology Co., Ltd. |
Carrying value of the asset group or the combination of asset groups | 146,178,528.82 |
Carrying value and apportionment method of goodwill apportioned to the asset group or the combination of asset groups | The Company held 52% equity of Shanghai Healthlong Biochemical Technology Co., Ltd., and the goodwill value apportioned to its asset group was RMB 59,681,079.23 |
Carrying value of the asset group or the combination of asset groups including goodwill | 205,859,608.05 |
Whether the asset group or the combination of asset groups is consistent with that determined in goodwill impairment test on the acquisition date and in previous years | Yes |
(4). Describe the goodwill impairment test process, key parameters (such as growth ratein the forecast period, growth rate in the stable period, profit margin, discountrate, forecast period, etc. when estimating the present value of the estimated futurecash flow, if applicable) and the recognition method for impairment losses ofgoodwill
√ Applicable□ Not applicable
The recoverable amount of goodwill is calculated at the present value of the expectedfuture cash flow. The expected cash flow is based on the 2021 cash flow forecast approvedby the Company, with the discount rate of 17.77% for cash flow forecast. The cash flowafter the forecast period is calculated by the growth rate of 0%.
Other key data used in impairment test include: estimated selling price, sales volume,production cost and other related expenses.The Company determines the above key data according to the historical experience and themarket development forecast. The discount rate adopted by the Company is the pre-tax ratereflecting the time value of money in current market and special risks of relevant assetgroups.
The forecast on the above recoverable amount indicates no impairment loss in goodwill.
(5). Effect of goodwill impairment test
□ Applicable√ Not applicable
Other particulars
□ Applicable√ Not applicable
29 Long-term prepaid expenses
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Opening balance | Increase amount of the current period | Amortization amount of the current period | Other decrease amounts | Closing balance |
Decoration and rental fee | 25,303,734.19 | 23,795,756.26 | 15,887,393.25 | 33,212,097.20 | |
Endorsement fee | 488,145.15 | 31,132,074.61 | 14,757,013.06 | 16,863,206.70 |
Garage use fee | 578,850.40 | 192,949.92 | 385,900.48 | ||
Mould | 7,834.76 | 7,834.76 | |||
Software service fee | 134,423.63 | 18,834.48 | 115,589.15 | ||
Total | 26,378,564.50 | 55,062,254.50 | 30,864,025.47 | 50,576,793.53 |
Other particulars:
In the current period, the decoration and rental fee increased by RMB 640,613.07,and the software service fee increased by RMB 134,423.63, which came from the equity ofShanghai Healthlong Biochemical Technology Co., Ltd.; its long-term prepaid expenses weretransferred in correspondingly.
30 Deferred income tax assets/liabilities
(1). Non-offset deferred income tax assets
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance | ||
Deductible temporary differences | Deferred income tax Assets | Deductible temporary differences | Deferred income tax assets | |
Impairment provisions of assets | ||||
Unrealized profits from internal transactions | 28,021,116.50 | 7,005,279.12 | 34,435,895.93 | 8,608,973.98 |
Deductible losses | 14,342,610.24 | 3,585,652.56 | ||
Bad debt provisions for accounts receivable | 27,188,715.77 | 6,796,972.50 | 8,107,969.05 | 2,025,703.32 |
Devaluation provisions of inventories | 15,796,150.28 | 2,634,264.73 | 14,868,791.08 | 2,571,107.32 |
Impact from share-based payment | 103,953,760.07 | 22,803,327.25 | 61,640,988.02 | 9,246,148.20 |
Government grants related to assets | 8,495,353.33 | 1,274,303.00 | 8,491,110.00 | 1,273,666.50 |
Unredeemed member points | 4,487,591.14 | 1,121,897.79 | 6,896,104.00 | 1,724,026.00 |
Expected return loss | 5,755,415.21 | 1,438,853.81 | 10,102,532.74 | 2,525,633.19 |
Total | 208,040,712.54 | 46,660,550.76 | 144,543,390.82 | 27,975,258.51 |
(2). Non-offset deferred income tax liabilities
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
Assets appreciation for business combination not under the common control | ||||
Changes in fair value of other debt investments | ||||
Changes in fair value of other equity instrument investments | ||||
One-time deduction of depreciation of fixed assets | 44,252,231.66 | 6,874,105.45 | 33,825,660.75 | 5,132,011.38 |
Total | 44,252,231.66 | 6,874,105.45 | 33,825,660.75 | 5,132,011.38 |
(3). Deferred income tax assets or liabilities presented on a net basis after offsetting
□ Applicable√ Not applicable
(4). Details of unrecognized deferred income tax assets
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Deductible temporary differences | 25,362,258.78 | 23,305,078.22 |
Deductible losses | 379,300,493.32 | 275,181,937.40 |
Total | 404,662,752.10 | 298,487,015.62 |
(5). The deductible losses of unrecognized deferred income tax assets will expire in the
following years
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Year | Amount at the end of the period | Amount at the beginning of the period | Note |
2021 | 48,812,246.22 | 48,812,246.22 | |
2022 | 62,924,802.76 | 63,135,622.67 | |
2023 | 63,485,783.30 | 63,485,783.30 | |
2024 | 99,748,285.21 | 99,748,285.21 | |
2025 | 104,329,375.83 | ||
Total | 379,300,493.32 | 275,181,937.40 | / |
Other particulars:
□ Applicable√ Not applicable
31 Other non-current assets
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance | ||||
Carrying balance | Impairment provisions | Carrying value | Carrying balance | Impairment provisions | Carrying value | |
Contract acquisition cost | ||||||
Contract performance cost | ||||||
Return cost receivable | ||||||
Contract assets | ||||||
Prepayment for purchase of long-term assets | 83,203,303.76 | 83,203,303.76 | 15,006,146.49 | 15,006,146.49 | ||
Other long-term assets | 4,119,476.27 | 4,119,476.27 | ||||
Total | 87,322,780.03 | 87,322,780.03 | 15,006,146.49 | 15,006,146.49 |
Other particulars:
RMB 81.6 million was used for land purchase in Longwu. As at 31 December 2020, thecorresponding land delivery procedure has not been completed.
32 Short-term borrowings
(1). Classification of short-term borrowings
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Pledged borrowings | ||
Mortgaged borrowings | ||
Guaranteed borrowings | 99,116,462.50 | |
Credit borrowings | 200,163,972.59 | |
Pledged and guaranteed borrowings | 129,047,396.51 | |
Total | 299,280,435.09 | 129,047,396.51 |
Description on classification of short-term borrowings:
None
(2). Particulars on overdue but outstanding short-term borrowings
□ Applicable√ Not applicable
Particulars of important overdue but yet unrepaid short-term borrowings:
□ Applicable√ Not applicable
Other particulars
□ Applicable√ Not applicable
33 Held-for-trading financial liabilities
□ Applicable√ Not applicable
34 Derivative financial liabilities
□ Applicable√ Not applicable
35 Notes payable
(1). Presentation of notes payable
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Type | Closing balance | Opening balance |
Trade acceptance | ||
Bank acceptance | 64,580,000.00 | 41,830,948.53 |
Total | 64,580,000.00 | 41,830,948.53 |
The total amount of notes payable due but outstanding at the end of the current periodwas RMB 0.
36 Accounts payable
(1). Presentation of accounts payable
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Payment for goods | 428,697,891.17 | 277,377,279.70 |
Expenses payable | 69,493,675.06 | 44,347,651.15 |
Payment for engineering equipment | 17,640,465.04 | 25,591,912.54 |
Total | 515,832,031.27 | 347,316,843.39 |
(2). Significant accounts payable with the account age over one year
□ Applicable√ Not applicable
Other particulars
□ Applicable√ Not applicable
37 Prepayment received
(1). Presentation of advance received from customers
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Payment for goods | ||
Total |
(2). Significant prepayment received with the account age over one year
□ Applicable√ Not applicable
Other particulars
√ Applicable□ Not applicable
Refer to the particulars of V.44 in “Section XI Financial Report” herein for thedifference between the opening balance and closing balance of prior year (31 December2019).
38 Contract liabilities
(1). Contract liabilities
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Advances on sales | 25,430,738.70 | 38,964,687.33 |
Unredeemed member points | 5,188,040.29 | 11,251,926.56 |
Total | 30,618,778.99 | 50,216,613.89 |
(2). Amount of and reasons for material changes in the carrying value in the Reporting
Period
□ Applicable√ Not applicable
Other particulars:
√ Applicable□ Not applicable
Refer to the particulars of V.44 in “Section XI Financial Report” herein for thedifference between the opening balance and closing balance of prior year (31 December2019).
39 Employee benefits payable
(1). Presentation of employee benefits payable
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Opening balance | Increase of the current period | Decrease of the current period | Closing balance |
I. Short-term benefits | 65,565,250.54 | 375,017,339.68 | 370,327,967.4 | 70,254,622.82 |
II. Post-employment | 1,118,901.44 | 5,863,903.93 | 6,409,188.49 | 573,616.88 |
benefits - Defined contribution plans | ||||
III. Dismissal benefits | 201,571.73 | 201,571.73 | ||
IV. Other benefits due within one year | ||||
Total | 66,684,151.98 | 381,082,815.34 | 376,938,727.62 | 70,828,239.70 |
(2). Presentation of short-term benefits
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Opening balance | Increase of the current period | Decrease of the current period | Closing balance |
I. Salary, bonus, allowance and subsidy | 63,909,902.04 | 334,251,903.28 | 329,517,966.72 | 68,643,838.60 |
II. Employee benefits | 14,327,349.36 | 14,320,533.80 | 6,815.56 | |
III. Social insurance | 938,499.38 | 12,849,186.25 | 12,905,457.63 | 882,228.00 |
Where: Medical insurance premiums | 789,484.39 | 12,246,181.23 | 12,259,474.67 | 776,190.95 |
Work-related injury insurance | 62,603.91 | 167,745.13 | 172,489.71 | 57,859.33 |
Maternity insurance | 86,411.08 | 435,259.89 | 473,493.25 | 48,177.72 |
IV. Housing provident fund | 716,771.52 | 11,587,769.58 | 11,582,800.44 | 721,740.66 |
V. Labor union and employee education funds | 77.6 | 2,001,131.21 | 2,001,208.81 | |
VI. Short-term compensated absences | ||||
VII. Short-term profit sharing plan | ||||
Total | 65,565,250.54 | 375,017,339.68 | 370,327,967.40 | 70,254,622.82 |
(3). Presentation of defined contribution plans
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Opening balance | Increase of the current period | Decrease of the current period | Closing balance |
1. Basic pension | 1,078,408.97 | 5,605,689.66 | 6,137,980.91 | 546,117.72 |
2. Unemployment insurance | 40,492.47 | 258,214.27 | 271,207.58 | 27,499.16 |
3. Enterprise annuity payment |
Total | 1,118,901.44 | 5,863,903.93 | 6,409,188.49 | 573,616.88 |
Other particulars:
□ Applicable√ Not applicable
40 Taxes payable
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Value added tax (“VAT”) | 25,557,167.53 | 25,197,722.01 |
Consumption tax | 359.31 | 4,103.80 |
Business tax | ||
Enterprise income tax | 32,994,016.76 | 35,920,176.92 |
Personnel income tax | 1,193,830.42 | 1,145,293.78 |
Urban maintenance and construction tax | 2,971,080.02 | 1,711,912.59 |
Property tax | 5,822,344.89 | 6,188,353.46 |
Education surcharge | 1,469,430.26 | 900,330.64 |
Local education surcharge | 979,620.14 | 600,220.42 |
Stamp duty | 330,703.60 | 154,729.52 |
Disabled security fund | 16,737.84 | 10,857.47 |
Total | 71,335,290.77 | 71,833,700.61 |
Other particulars:
None
41 Other payablesPresented by item
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Interest payable | ||
Dividend payable | ||
Other payables | 75,546,323.32 | 91,444,673.31 |
Total | 75,546,323.32 | 91,444,673.31 |
Other particulars:
□ Applicable√ Not applicable
Interest payable
(1). Presentation by category
□ Applicable√ Not applicable
Dividends payable
(1). Presentation by category
□ Applicable√ Not applicable
Other payables
(1). Other payables presented by amount nature
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Deposit and margin | 54,289,062.52 | 66,903,407.44 |
Repurchase obligation of restricted shares | 12,653,905.25 | 15,769,051.20 |
Others | 8,603,355.55 | 8,772,214.67 |
Total | 75,546,323.32 | 91,444,673.31 |
(2). Other payables with the account age over one year
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Reasons for outstanding amount or carry-over |
Repurchase obligation of restricted shares | 12,653,905.25 | The repurchase obligation of restricted shares has not been fulfilled yet |
Total | 12,653,905.25 | / |
Other particulars:
□ Applicable√ Not applicable
42 Held-for-sale liabilities
□ Applicable√ Not applicable
43 Non-current liabilities due within one year
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Long-term borrowings due within one year | 85,258,247.69 | |
Bonds payable due within one year | ||
Long-term payables due within one year | ||
Lease liabilities due within one year | ||
Total | 85,258,247.69 |
Other particulars:
None44 Other current liabilitiesParticulars on other current liabilities
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Short-term bonds payable | ||
Return refunds payable | ||
Output taxes to be transferred | 1,439,262.02 | 1,948,803.22 |
Total | 1,439,262.02 | 1,948,803.22 |
Changes in short-term bonds payable:
□ Applicable√ Not applicable
Other particulars:
√ Applicable□ Not applicable
Refer to the particulars of V.44 in “Section XI Financial Report” herein for thedifference between the opening balance and closing balance of prior year (31 December2019).
45 Long-term borrowings
(1). Classification of long-term borrowings
□ Applicable√ Not applicable
Other particulars, including interest rate ranges:
□ Applicable√ Not applicable
46 Bonds payable
(1). Bonds payable
□ Applicable√ Not applicable
(2). Increase or decrease of bonds payable: (excluding other financial instruments such
as preferred shares and perpetual bonds classified as financial liabilities)
□ Applicable√ Not applicable
(3). Description on the conversion conditions and conversion time of convertible
corporate bonds
□ Applicable√ Not applicable
(4). Description on other financial instruments classified as financial liabilitiesBasic information on other financial instruments such as outstanding preferred sharesand perpetual bonds at the end of the period
□ Applicable√ Not applicable
Form of changes in financial instruments such as outstanding preferred shares andperpetual bonds at the end of the period
□ Applicable√ Not applicable
Description of the basis for other financial instruments classified as financialliabilities:
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
47 Lease liabilities
□ Applicable√ Not applicable
48 Long-term payablesPresented by item
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
Long-term payables
(1). Long-term payables presented by amount nature
□ Applicable√ Not applicable
Special payables
(1). Special payables presented by amount nature
□ Applicable√ Not applicable
49 Long-term employee remuneration payable
□ Applicable√ Not applicable
50 Estimated liabilities
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Opening balance | Closing balance | Cause of formation |
External guarantee | |||
Pending actions | |||
Product quality assurance | |||
Restructuring obligation | |||
Onerous contract to be executed | |||
Return refunds payable | 17,225,099.62 | 10,190,099.22 | Estimate the possible return loss in the future |
Others | |||
Total | 17,225,099.62 | 10,190,099.22 | / |
Other particulars, including descriptions on relevant important assumptions andestimates of significant estimated liabilities:
Refer to the particulars of V.44 in “Section XI Financial Report” herein for thedifference between the opening balance and closing balance of prior period (31 December2019).
51 Deferred incomeParticulars on deferred income
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Opening balance | Increase of the current period | Decrease of the current period | Closing balance | Cause of formation |
Government grant | 8,491,110.00 | 2,000,000.00 | 1,995,756.67 | 8,495,353.33 | Government allocations |
Total | 8,491,110.00 | 2,000,000.00 | 1,995,756.67 | 8,495,353.33 | / |
Refer to the particulars of V.44 in “Section XI Financial Report” of the report for thedifference between the opening balance and closing balance of prior period (31 December2019).
Items involving government subsidies:
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Liability items | Opening balance | Subsidy amount increased in the current period | Amount included in non-operating income of the current period | Amount included in other income of the current period | Other changes | Closing balance | Pertinent to assets/income |
Subsidy for technological transformation of cosmetics | 8,491,110.00 | 2,000,000.00 | 1,995,756.67 | 8,495,353.33 | Pertinent to assets |
Other particulars:
√ Applicable□ Not applicable
Refer to the particulars of “VII. 84 Government grant” in “Section XI FinancialReport” herein for the amount of government grant included in current profit or lossin the current period.
52 Other non-current liabilities
□ Applicable√ Not applicable
53 Share capital
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Opening balance | Increase or decrease (+ or -) due to this change | Closing balance | |||||
Issue New shares | Bonus shares | Provident funds Transferred shares | Others | Sub-total | |||
Total shares | 201,269,560 | -152,635 | -152,635 | 201,116,925 |
Other particulars:
According to the resolution at the 15
th and 16
thmeetings of the Second Session of theBoard of Directors in 2020, the 3
rdextraordinary general shareholders’ meeting in 2020and the amended articles of association, the Company applied for repurchasing 152,635restricted RMB ordinary shares (A-shares) that are authorized but not yet unlocked bycash, and the share repurchase payment totaled RMB 2,584,110.55, in which the sharecapital decreased by RMB 152,635.00 and the capital reserve (share premium) decreasedby RMB 2,431,475.55. Pan-China Certified Public Accountants LLP has audited and verifiedthe above matters, and issued theCapital Verification Report(TJY [2020] No. 496).Statement of equity pledgeAs at 31 December 2020, the breakdown for the shares of major shareholders of theCompany was as follows:
Name of shareholder | Total number of shares held (share) | Number of frozen shares (share) | Freezing type |
Fang Yuyou | 46,830,632 | 23,120,000 | Pledge |
Subtotal | 46,830,632 | 23,120,000 |
54 Other equity instruments
(1). Basic information on other financial instruments such as preferred shares andperpetual bonds outstanding at the end of the period
□ Applicable√ Not applicable
(2). Changes in financial instruments such as preferred shares and perpetual bonds
outstanding at the end of the period
□ Applicable√ Not applicable
Changes in other equity instruments of the current period, reasons for changes, and basisfor relevant accounting treatment:
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
55 Capital reserve
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Opening balance | Increase of the current period | Decrease of the current period | Closing balance |
Capital premium (Share premium) | 803,404,232.49 | 11,225,993.69 | 20,344,266.98 | 794,285,959.20 |
Other capital reserve | 31,949,382.99 | 21,994,190.14 | 11,194,695.64 | 42,748,877.49 |
Total | 835,353,615.48 | 33,220,183.83 | 31,538,962.62 | 837,034,836.69 |
Other particulars, including descriptions on changes of the current period and reasonsfor changes:
1) Increase or decrease of capital premium
The capital premium (share premium) increased by RMB 11,225,993.69 in the currentperiod, due to the followings: ① the increase of RMB 11,194,695.64 was because that othercapital reserve recognized in the waiting period of the unlocked part of restricted sharesissued by equity incentive plan had been transferred to the share premium; the increaseof RMB 31,298.05 was because that the minority shareholder increased the capital ofZhejiang Biyouti Cosmetics Co., Ltd. (hereinafter referred to as “Biyouti”) by 5%, andbecause of the difference between the share in carrying net asset of Biyouti calculatedaccording to the shareholding ratio of the Company after the capital increase and thatbefore the capital increase.The capital premium (share premium) decreased by RMB 20,344,266.98 in the currentperiod, due to the followings: ① decreased by RMB 2,431,475.55; see the particulars of“VII.53 share capital” in “Section XI Financial Report” of this report for details; ②the decrease of RMB 3,065,227.01 was due to the purchase of minority shareholder equityof subsidiary - Huzhou UZERO Trading Co., Ltd., as well as the difference between thepayment and the share of net identifiable assets of the subsidiary according to the newshareholding ratio; ③ the decrease of RMB 1,088,996.78 was due to the purchase of minorityshareholder equity of subsidiary - Shanghai Zhongwen Electronic Commerce Co., Ltd., aswell as the difference between the payment and the share of net identifiable assets of
the subsidiary according to the new shareholding ratio; ④ the decrease of RMB 110,459.96was due to the purchase of minority shareholder equity of Hong Kong Zhongwen ElectronicCommerce Co., Limited, as well as the difference between the payment and the share ofnet identifiable assets of the subsidiary according to the new shareholding ratio; ⑤the decrease of RMB 13,648,107.68 was due to the purchase of minority shareholder equityof subsidiary - Ningbo TIMAGE Cosmetics Co., Ltd., as well as the difference between thepayment and the share of net identifiable assets of the subsidiary according to the newshareholding ratio.
2) Increase and decrease of other capital reserve
The capital reserve increased by RMB 21,994,190.14 in the current period, due to thefollowings: ① the increase of RMB 19,832,803.09 was because that, according to the equityincentive plan of the Company, restricted shares incentive expense of RMB 4,193,320.87was recognized in 2020 and included in other capital reserve; meanwhile, deferred incometax assets of RMB 15,639,482.22 were withdrawn and included in other capital reserve forthe deductible amount before tax in the future that exceeded the recognized incentiveexpense of restricted shares; ② the increase of RMB 2,161,387.05 was due to the adjustmentof capital reserve based on the difference between the actual deductible amount beforetax of the unlocked part and the amount recognized in previous years.
The decrease of other capital reserve of RMB 11,194,695.64 in the current period wasbecause that other capital reserve recognized in the waiting period of the unlocked partof restricted shares issued by equity incentive plan had been transferred to the sharepremium.
56 Treasury shares
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Opening balance | Increase of the current period | Decrease of the current period | Closing balance |
Restricted shares with repurchase obligation | 15,769,051.20 | 3,115,145.95 | 12,653,905.25 | |
Total | 15,769,051.20 | 3,115,145.95 | 12,653,905.25 |
Other particulars, including descriptions on changes of the current period and reasonsfor changes:
Main reasons for the decrease of RMB 3,115,145.95 in the current period: 1) thedecrease of RMB 2,584,110.55 in the current period was due to the repurchase of 152,635
restricted RMB ordinary shares (A-shares) that are authorized but not yet unlocked bycash; 2) the decrease of RMB 531,035.40 in the current period was due to the offset oftreasury shares for dividend distributed for 747,425 unlocked restricted shares and152,635 restricted shares repurchased in the current period and corresponding adjustmentof other payables.
57 Other comprehensive incomes
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | At the beginning of the period Balance | Amount accounted for in the current period | At the end of the period Balance | |||||
Amount incurred before income tax for the current period | Less: Included in other comprehensive incomes in the prior period and transferred to profit and loss in the current period | Less: Included in other comprehensive incomes in the previous period and transferred to retained earnings in the current period | Less: Income tax expenses | Attributable to the parent company after the tax | Attributable to minority shareholders after the tax | |||
I. Other comprehensive income not to be reclassified into profit or loss | ||||||||
Where: Re-measurement of the changes in the defined benefit plan | ||||||||
Other comprehensive income that may |
not be reclassified to profit or loss under equity method | ||||||||
Changes in fair value of other equity instrument investments | ||||||||
Change in fair value of enterprise's own credit risk | ||||||||
II. Other comprehensive income to be reclassified into profit or loss | -212,628.22 | -56,437.91 | -56,437.91 | -269,066.13 | ||||
Where: Other comprehensive incomes to be reclassified to profits and losses via equity method | ||||||||
Changes in fair value of other debt investments | ||||||||
Amount included |
in other comprehensive income on reclassification of financial assets | ||||||||
Credit impairment provisions of other debt investments | ||||||||
Cash flow hedging reserve | ||||||||
Exchange differences from translation of financial statements | -212,628.22 | -56,437.91 | -56,437.91 | -269,066.13 | ||||
Total other comprehensive income | -212,628.22 | -56,437.91 | -56,437.91 | -269,066.13 |
Other particulars, including the adjustment of the effective portion of cash flow hedgingprofit or loss transferred to the initial recognition amount of the hedged item:
None
58 Special reserve
□ Applicable√ Not applicable
59 Surplus reserve
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Opening balance | Increase of the current period | Decrease of the current period | Closing balance |
Statutory surplus reserve | 100,634,780.00 | 100,634,780.00 | ||
Arbitrary surplus reserve | ||||
Reserve fund | ||||
Enterprise |
development fund | ||||
Others | ||||
Total | 100,634,780.00 | 100,634,780.00 |
Descriptions on surplus reserve, including descriptions on changes of the current periodand reasons for changes:
In accordance with theCompany Law, where the Company’s accumulated amount of legalreserve exceeds 50% of the Company’s registered capital, it can be no longer withdrawn.
60 Undistributed profit
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Current period | Previous period |
Pre-adjustment undistributed profits at the end of the previous period | 908,411,607.62 | 634,448,228.13 |
Total adjustment amount of undistributed profits at the beginning of the period (“+” refers to increase by adjustment and “-” refers to decrease by adjustment) | 908,411,607.62 | 634,448,228.13 |
Post-adjustment amount of undistributed profits at the beginning of the period | ||
Add: Net profit attributable to shareholders of the parent company in the current period | 476,009,298.41 | 392,681,976.58 |
Less: Withdrawal of statutory surplus reserves | 32,165,703.09 | |
Arbitrary surplus reserve accrued | ||
Withdrawal of general risk provision | ||
Dividends on common shares payable | 118,749,040.40 | 86,552,894.00 |
Dividends on common shares converted to stock capital | ||
Undistributed profit at the end of the period | 1,265,671,865.63 | 908,411,607.62 |
According to the resolution at the 2019 annual general meeting of the Company, theCompany distributed cash dividend of RMB 5.90 (tax inclusive) per 10 shares to allshareholders based on the total share capital of 201,269,560 shares registered on theregistration date of dividend-paying equity, totaling RMB 118,749,040.40 (tax
inclusive).Details on adjustment of undistributed profits at the beginning of the period:
1. Due to the retrospective adjustment based on the
Accounting Standards for BusinessEnterprisesand their related new regulations, the affected undistributed profit at thebeginning of the period was RMB 0.
2. Due to changes in accounting policies, the affected undistributed profit at thebeginning of the period was RMB0.
3. Due to correction of major accounting errors, the affected undistributed profit atthe beginning of the period was RMB 0.
4. Due to changes in the scope of the consolidated financial statements caused by thebusiness combination under common control, the affected undistributed profit at thebeginning of the period was RMB 0.
5. Due to other adjustments, the affected undistributed profit at the beginning of theperiod was RMB 0.
61 Operating revenues and operating costs
(1). Particulars on operating revenues and operating costs
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period | ||
Revenue | Costs | Revenue | Costs | |
Main operations | 3,747,924,600.60 | 1,363,486,774.26 | 3,116,453,641.63 | 1,120,308,887.81 |
Other operations | 4,462,248.42 | 4,075,175.52 | 7,066,570.14 | 5,264,338.42 |
Total | 3,752,386,849.02 | 1,367,561,949.78 | 3,123,520,211.77 | 1,125,573,226.23 |
(2). Particulars on revenues from contracts
□ Applicable√ Not applicable
Description on revenues from contracts:
□ Applicable√ Not applicable
(3). Description on performance obligations
□ Applicable√ Not applicable
(4). Description on apportionment to remaining performance obligations
□ Applicable√ Not applicable
Other particulars:
None
62 Taxes and surcharges
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the | Amount accounted for in the |
current period | previous period | |
Consumption tax | 66,493.56 | 155,946.77 |
Business tax | ||
Urban maintenance and construction tax | 13,634,530.33 | 10,717,040.55 |
Education surcharge | 6,988,508.15 | 5,651,261.92 |
Resource tax | -527,984.00 | |
Property tax | 5,822,344.89 | 6,189,563.61 |
Land use tax | -527,984.00 | |
Vehicle usage tax | 15,600.00 | 356,788.50 |
Stamp duty | 1,758,703.64 | 1,537,784.18 |
Local education surcharge | 4,659,005.42 | 3,758,763.75 |
Total | 32,945,185.99 | 27,839,165.28 |
Other particulars:
The land use tax was negative in the prior period, because the land use tax of RMB527,984.00 in 2018 was exempted in accordance with theNotice on Tax Mattersof HuzhouWuxing District Taxation Bureau, State Taxation Administration.
63 Selling expenses
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Image promotion expense | 1,226,430,935.32 | 839,023,707.19 |
Employee remuneration | 216,021,800.31 | 233,027,016.74 |
Freight | 76,246,332.91 | |
Office expense | 22,228,325.98 | 25,640,510.49 |
Travel expense | 15,220,908.88 | 22,754,602.59 |
Conference fee | 6,610,405.20 | 15,008,494.06 |
Research and consulting fee | 7,764,271.67 | 9,052,048.12 |
Others | 2,782,295.98 | 2,279,111.97 |
Total | 1,497,058,943.34 | 1,223,031,824.07 |
Other particulars:
Due to the implementation of new revenue standards, the freight of RMB 117,852,735.96was presented in the principal business cost in the current period.
64 Administrative expenses
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Employee remuneration and service fee | 99,248,945.51 | 79,481,331.22 |
Office expense and business entertainment expense | 33,851,704.91 | 37,535,967.80 |
Expenses for depreciation, amortization and lease | 40,809,336.86 | 29,130,823.88 |
Equity incentive expense for restricted shares | 4,193,320.87 | 16,864,155.99 |
Consulting and intermediary expenses | 17,799,433.91 | 12,403,364.64 |
Travel expense and conference fee | 3,368,329.40 | 10,784,663.99 |
Others | 5,008,307.22 | 9,059,619.50 |
Total | 204,279,378.68 | 195,259,927.02 |
Other particulars:
None
65 R&D expenses
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Labor charge | 42,457,484.59 | 33,218,856.20 |
Outsourced R&D expense | 22,198,043.50 | 28,528,937.23 |
Direct input expense | 2,232,870.29 | 8,553,749.86 |
Expenses for depreciation, amortization and lease | 3,976,173.74 | 3,179,228.45 |
Others | 1,335,456.65 | 1,121,834.81 |
Total | 72,200,028.77 | 74,602,606.55 |
Other particulars:
None
66 Financial expenses
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Interest expenses | 9,190,674.26 | 8,565,736.81 |
Interest income | -20,740,463.77 | -18,108,947.26 |
Handling fee | 963,155.58 | 542,976.58 |
Exchange gains and losses | -3,020,481.60 | -494,578.43 |
Total | -13,607,115.53 | -9,494,812.30 |
Other particulars:
None
67 Other incomes
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Government grants related to assets [Note] | 1,995,756.67 | 1,879,090.00 |
Government grants related to income [Note] | 10,202,653.51 | 6,042,824.03 |
Return of handling fee for withholding individual | 684,529.89 | 236,203.39 |
income tax | ||
Additional deduction of VAT input tax | 608,569.65 | 257,340.26 |
Total | 13,491,509.72 | 8,415,457.68 |
Other particulars:
[Note] Refer to the particulars of “VII. 84 Government grant” in “Section XIFinancial Report” herein for the amount of government grant included in other incomein the current period.
68 Investment income
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Long-term equity investment income accounted for under the equity method | -646,615.60 | -2,530,337.96 |
Investment income from disposal of long-term equity investment | 149,705.73 | |
Investment income from held-for-trading financial assets during the holding period | ||
Dividend income from other equity instrument investments during the holding period | ||
Interest income from debt investment during the holding period | ||
Interest income from other debt investments during the holding period | ||
Investment income from disposal of held-for-trading financial assets | ||
Investment income from disposal of other equity instrument investments | ||
Investment income from disposal of debt investment | ||
Investment income from disposal of other debt investments | ||
Income from wealth management products | 2,266,301.37 | 4,653,362.83 |
Total | 1,769,391.50 | 2,123,024.87 |
Other particulars:
None
69 Net exposure hedging income
□ Applicable√ Not applicable
70 Income from changes in fair value
□ Applicable√ Not applicable
71 Credit impairment losses
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Bad debt losses of notes receivable | ||
Bad debt losses of accounts receivable | -24,292,116.38 | -8,203,372.40 |
Bad debt losses of other receivables | 383,393.99 | -339,166.76 |
Impairment losses of debt investment | ||
Impairment losses of other debt investments | ||
Bad debt losses of long-term receivables | ||
Impairment losses of contract assets | ||
Total | -23,908,722.39 | -8,542,539.16 |
Other particulars:
None
72 Asset impairment losses
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
1. Bad debt losses | ||
II. Inventory falling price loss and impairment losses of contract performance cost | -28,234,605.50 | -23,062,698.05 |
III. Impairment losses of long-term equity investment | -4,076,710.83 | |
IV. Impairment losses of investment real estate | ||
V. Impairment losses of fixed assets | ||
VI. Impairment losses of |
engineering materials | ||
VII. Impairment loss of projects under construction | ||
VIII. Impairment losses of productive biological assets | ||
IX. Impairment losses of oil and gas assets | ||
X. Impairment losses of intangible assets | ||
XI. Impairment losses of goodwill | ||
XII. Others | ||
Total | -28,234,605.50 | -27,139,408.88 |
Other particulars:
None
73 Income from disposal of assets
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Income from disposal of fixed assets | 854.57 | 43,245.67 |
Total | 854.57 | 43,245.67 |
Other particulars:
None
74 Non-operating incomeNon-operating profits
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period | Amount included in the current non-recurring gains and losses |
Total gains from disposal of non-current assets | |||
Where: Gains from disposal of fixed assets | |||
Gains from disposal of intangible assets | |||
Gains from restructuring of debts | |||
Gains from exchange of non-currency |
assets | |||
Acceptance of donations | |||
Government grant | |||
Income from forfeiture and liquidated damages | 1,438,505.28 | 576,749.36 | 1,438,505.28 |
Others | 104,088.97 | 202,228.79 | 104,088.97 |
Total | 1,542,594.25 | 778,978.15 | 1,542,594.25 |
Government subsidies included in current profit and loss
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
75 Non-operating expenditure
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period | Amount included in the current non-recurring gains and losses |
Total losses from disposal of non-current assets | |||
Where: Losses from disposal of fixed assets | |||
Losses from disposal of intangible assets | |||
Losses from restructuring of debts | |||
Losses from exchange of non-currency assets | |||
Offering of donations | 8,419,034.02 | 4,950,639.40 | 8,419,034.02 |
Compensation expenditure | 304,032.01 | ||
Losses from retirement of non-current assets | 4,113.95 | 4,831.73 | 4,113.95 |
Others | 614,781.74 | 884,573.70 | 614,781.74 |
Total | 9,037,929.71 | 6,144,076.84 | 9,037,929.71 |
Other particulars:
None
76 Income tax expenses
(1). Table of income tax expenses
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Current income tax expenses | 97,265,732.16 | 87,534,077.32 |
Deferred income tax expenses | -1,303,715.96 | 2,340,679.62 |
Total | 95,962,016.20 | 89,874,756.94 |
(2). Adjustment process of accounting profits and income tax expenses
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period |
Total profits | 547,571,570.43 |
Income tax expenses calculated at statutory/applicable tax rate | 136,892,892.61 |
Effect of applying different tax rates to subsidiaries | -59,108,336.59 |
Effect of adjusting income taxes of the previous periods | 918,095.21 |
Effect of non-taxable income | |
Effect of non-deductible costs, expenses and losses | 224,499.02 |
Effect of deductible losses of deferred income tax assets not recognized in the previous period | -367,935.75 |
Effect of deductible temporary differences or deductible losses of deferred income tax assets not recognized in the current period | 24,833,284.65 |
Additional deduction of R&D expense | -7,430,482.95 |
Income tax expenses | 95,962,016.20 |
Other particulars:
□ Applicable√ Not applicable
77 Other comprehensive incomes
√ Applicable□ Not applicable
Refer to V.57 in “Section XI Financial Report” of this report for details.
78 Items of the cash flow statement
(1). Other cash received relating to operating activities
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Bank interest income | 20,755,011.64 | 17,945,462.87 |
Government grant | 12,198,410.18 | 6,034,656.66 |
Others related to operating activities | 48,786,531.20 | 3,459,621.48 |
Total | 81,739,953.02 | 27,439,741.01 |
Descriptions on other cash received from operating activities:
None
(2). Other cash paid relating to operating activities
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Image promotion expense | 1,146,440,191.10 | 712,065,545.72 |
Other cash expenses | 241,438,672.23 | 216,134,626.98 |
Others related to operating activities | 35,086,174.43 | 11,246,654.35 |
Total | 1,422,965,037.76 | 939,446,827.05 |
Descriptions on cash paid for other operating activities:
None
(3). Other cash received relating to investing activities
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Net cash received from subsidiaries | 66,052,759.40 | |
Recovery of working capital provided to associates | 2,500,000.00 | |
Total | 66,052,759.40 | 2,500,000.00 |
Description on other cash received relating to investing activitiesNone
(4). Other cash paid relating to investing activities
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Net cash paid for disposal of | 1,035,148.02 |
subsidiaries | ||
Working capital provided to associates | 2,500,000.00 | |
Total | 1,035,148.02 | 2,500,000.00 |
Description on other cash paid relating to investing activitiesNone
(5). Other cash received relating to financing activities
□ Applicable√ Not applicable
(6). Other cash paid relating to financing activities
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Payment for share repurchase | 2,584,110.55 | 1,657,699.80 |
Amount for acquisition of minority shareholder equity | 100,000.00 | |
Total | 2,684,110.55 | 1,657,699.80 |
Descriptions on other cash paid for financing-related activities:
None
79 Supplementary information for the cash flow statement
(1). Supplementary information for the cash flow statement
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Supplementary information | Amount in the current period | Amount in the last period |
1. Operating cash flow adjusted from net profits: | ||
Net profit | 451,609,554.23 | 366,368,199.47 |
Add: Impairment provisions of assets | 23,908,722.39 | 8,542,539.16 |
Credit impairment losses | 28,234,605.50 | 27,139,408.88 |
Depreciation of fixed assets, oil and gas assets, and productive biological assets | 41,946,043.10 | 35,243,126.99 |
Amortization of right-of-use assets | ||
Amortization of intangible assets | 14,982,350.71 | 14,015,243.08 |
Amortization of long-term prepaid expenses | 30,864,025.47 | 25,913,102.37 |
Losses from disposal of fixed assets, intangible assets and other long-term assets (“-” refers to gains) | -854.57 | -43,245.67 |
Losses from retirement of fixed assets (“-” refers to gains) | 4,113.95 | 4,831.73 |
Losses from changes in fair value (“-” refers to gains) | ||
Financial expenses (“-” refers to income) | 9,190,674.26 | 8,538,736.81 |
Investment losses (“-” refers to gains) | -1,769,391.50 | -2,123,024.87 |
Decrease in deferred income tax assets (“-” refers to increase) | -3,045,810.03 | -5,115,103.48 |
Increase in deferred income tax liabilities (“-” refers to decrease) | 1,742,094.07 | 2,216,088.09 |
Decrease in inventories (“-” refers to increase) | -174,795,286.43 | -103,933,904.36 |
Decrease in operating receivables (“-” refers to increase) | -145,846,608.97 | -163,773,517.84 |
Increase in operating payables (“-” refers to decrease) | 48,171,169.04 | 864,996.98 |
Others | 6,354,707.92 | 22,103,851.00 |
Net cash flow generated from operating activities | 331,550,109.14 | 235,961,328.34 |
2. Major investment and financing activities involving no cash deposit and withdrawal: | ||
Debts converted to capital | ||
Convertible company bonds due within one year | ||
Fixed assets acquired under financing leases | ||
3. Net change in cash and cash equivalents: | ||
Closing balance of cash | 1,401,850,754.88 | 1,099,092,785.07 |
Less: Opening balance of cash | 1,099,092,785.07 | 1,126,866,649.39 |
Add: Closing balance of cash equivalents | ||
Less: Opening balance of cash equivalents | ||
Net increase in cash and cash equivalents | 302,757,969.81 | -27,773,864.32 |
(2). Net cash amount paid for the acquisition of subsidiaries in the current period
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Amount | |
Cash or cash equivalents paid for the business combination of the current period in the current period | |
Less: Cash and cash equivalents held by the subsidiaries | 66,052,759.40 |
on the acquisition date | |
Where: Shanghai Healthlong Biochemical Technology Co., Ltd. | 66,052,759.40 |
Add: Cash or cash equivalents paid in the current period for the consolidation in the previous periods | |
Net cash paid for acquiring subsidiaries | -66,052,759.40 |
Other particulars:
In the current period, the capital increase of RMB 110,500,000 was made, by the Company,to Shanghai Healthlong Biochemical Technology Co., Ltd. to acquire its 52% equity, andthe cash and cash equivalents held by Shanghai Healthlong Biochemical Technology Co.,Ltd. on the acquisition date were listed in “other cash received relating to investingactivities”.
(3). Net cash amount received from the disposal of subsidiaries in the current period
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Amount | |
Cash or cash equivalents received in the current period from the disposal of subsidiaries in the current period | 2,445,612.19 |
Where: Huzhou Tizhi Cosmetics Co., Ltd. | 2,445,612.19 |
Less: Cash and cash equivalents held by the subsidiaries on the date of losing the control | 3,480,760.21 |
Where: Huzhou Tizhi Cosmetics Co., Ltd. | 3,480,760.21 |
Add: Cash or cash equivalents received in the current period from the disposal of subsidiaries in the previous periods | |
Net cash received from disposal of subsidiaries | -1,035,148.02 |
Other particulars:
The net cash was listed in “other cash paid relating to investing activities”.
(4). Composition of cash and cash equivalents
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
I. Cash | 1,401,850,754.88 | 1,099,092,785.07 |
Where: Cash on hand | 26,853.58 | 42,499.65 |
Bank deposits readily available for payment | 1,368,515,531.05 | 1,090,478,757.15 |
Other cash and equivalents readily available for payment at any time | 33,308,370.25 | 8,571,528.27 |
Due from central bank available for payment | ||
Due from placements with banks and other financial institutions | ||
Call loan to banks and other financial institutions |
II. Cash equivalents | ||
Where: Bond investment due in 3 months | ||
III. Closing balance of cash and cash equivalents | 1,401,850,754.88 | 1,099,092,785.07 |
Where: Cash and cash equivalents the use of which by the parent company or any subsidiary of the Group is limited |
The amount of trade bills transferred by endorsement, involving no cash payment andexpenses
Item | Amount in the current period | Balance in last period |
Amount of trade bills transferred by endorsement | 12,176,952.00 | 58,796,965.82 |
Where: Payment of goods | 12,176,952.00 | 58,796,965.82 |
Other particulars:
√ Applicable□ Not applicable
Supplementary information of cash flow statement
Time | Balance of monetary capital | Cash and cash equivalents | Amount difference | Causes of difference |
31 December 2020 | 1,416,654,640.93 | 1,401,850,754.88 | 14,803,886.05 | The margin for fixed-term deposits of transformer was RMB 293,481.72, the ETC vehicle deposit was RMB 69,000.00, the land construction deposit was RMB 7,036,404.33, the L/C deposit was RMB 7,000,000.00, and Tmall and Alipay deposits were RMB 405,000.00. |
31 December 2019 | 1,246,901,218.99 | 1,099,092,785.07 | 147,808,433.92 | The margin for fixed-term deposits of transformer was RMB 293,481.72, the land construction deposit was RMB 6,909,952.20, Tmall and Alipay deposits were RMB 605,000.00, and the structured deposit was RMB 140,000,000.00. |
80 Notes to items of the Statements of Changes in Owners’ EquityDescription on “other” item name and adjustment amount adjusted for balance at the endof the previous year:
□ Applicable√ Not applicable
81 Assets with restricted ownership or use rights
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Carrying value at the end of the period | Reason for restriction |
Cash and equivalents | 14,803,886.05 | Land construction deposit, transformer deposit, L/C deposit, Tmall deposit, Alipay deposit, etc. |
Bills receivable | ||
Inventories | ||
Fixed assets | ||
Intangible assets | ||
Total | 14,803,886.05 | / |
Other particulars:
None
82 Foreign currency monetary items
(1). Foreign currency monetary items
√ Applicable□ Not applicable
Unit: Yuan
Item | Foreign currency balance at the end of the period | Translation foreign exchange rate | RMB translated at the end of the period Balance |
Cash and equivalents | - | - | 84,925,396.80 |
Where: USD | 910,161.83 | 6.5249 | 5,938,714.92 |
EUR | 9,089,403.05 | 8.0250 | 72,942,459.48 |
HKD | 4,707,222.42 | 0.84164 | 3,961,786.68 |
Japanese Yen | 2,080.00 | 0.063236 | 131.53 |
Korean Won | 318,899,153.00 | 0.005997 | 1,912,438.22 |
Swiss franc | 22,953.00 | 7.4006 | 169,865.97 |
Accounts receivable | - | - | 2,872,452.48 |
Where: USD | |||
EUR | 331,984.86 | 8.0250 | 2,664,178.50 |
HKD | 19,218.52 | 0.84164 | 16,175.08 |
Korean Won | 32,032,500.00 | 0.005997 | 192,098.90 |
Long-term borrowings | - | - | |
Where: USD | |||
EUR | |||
HKD |
Accounts payable | - | - | 7,486,451.74 |
Where: USD | 6,813.05 | 6.5249 | 44,454.47 |
EUR | 897,119.52 | 8.0250 | 7,199,384.15 |
HKD | 288,262.35 | 0.84164 | 242,613.12 |
Other receivables | - | - | 29,027,874.26 |
Where: USD | 29,565.13 | 6.5249 | 192,909.52 |
EUR | 3,485,128.23 | 8.0250 | 27,968,154.05 |
HKD | 737,060.97 | 0.84164 | 620,339.99 |
Korean Won | 41,099,000.00 | 0.005997 | 246,470.70 |
Other payables | - | - | 751,958.71 |
Where: Korean Won | 99,667,602.97 | 0.005997 | 597,706.62 |
EUR | 16,933.33 | 8.0250 | 135,889.97 |
HKD | 21,817.07 | 0.84164 | 18,362.12 |
Other particulars:
None
(2). Descriptions on overseas operating entities, including, for important overseas
business entities, their main overseas business locations, accounting currency andselection basis shall be disclosed; in case of any change in the accounting currency,the reasons for such change shall be also disclosed
√ Applicable□ Not applicable
Hapsode Co., Ltd., Hanna Cosmetics Co., Ltd. and Korea Younimi Cosmetics Co., Ltd.are located in South Korea, with business income and expenditure dominated by Korean Won,which is used as the accounting currency; Hong Kong Xinghuo Industry Limited, Hong KongZhongwen Electronic Commerce Co., Limited, Hong Kong Xuchen Trading Limited, HONGKONGKESHI TRADING LIMITED, BOYA (Hong Kong) Investment Management Co., Limited and Hong KongWanyan Electronic Commerce Co., Limited are located in Hong Kong, with RMB as theaccounting currency; P.R.O CO., LTD. is located in Japan, with business income andexpenditure dominated by Japanese Yen, which is used as the accounting currency.
83 Hedging
□ Applicable√ Not applicable
84 Government grant
(1). Basic information on government grant
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Type | Amount | Presentation item | Amount included in current profit and loss |
Government grants related to assets | 1,995,756.67 | Other income | 1,995,756.67 |
Government grants | 10,202,653.51 | Other income | 10,202,653.51 |
(2). Return of government grant
□ Applicable√ Not applicable
Other particulars:
1) Government grants related to assets
related to incomeItem
Item | Deferred income at the beginning of the period | Amount of subsidies increased in the current period | Amortization of the current period | Deferred income at the end of the period | Amortization items in the current period | the situation |
Subsidy for technological transformation of cosmetics | 8,491,110.00 | 2,000,000.00 | 1,995,756.67 | 8,495,353.33 | Other income | |
Subtotal | 8,491,110.00 | 2,000,000.00 | 1,995,756.67 | 8,495,353.33 |
According to theNotice on the Award for Technical Transformation of Proya CosmeticsCo., Ltd. Huzhou Branchissued by the People's Government of Daixi Town, Huzhou, theCompany received technical transformation subsidy of RMB 14,561,400.00 from theGovernment of Daixi Town in 2014, relevant assets were allocated equally within theservice life, and RMB 1,456,140.00 was included in the other income in the current period.According to theNotice on Issuing Construction and Development Fund (First Batch)for Powerful Industrial City in 2015(HCQ [2015] No. 150) issued by Huzhou Finance andHuzhou Economy and Information Bureau, the technical transformation subsidy of RMB2,350,000.00 was appropriated by Huzhou Finance in 2015, relevant assets were allocatedequally within the service life, and RMB 235,000.00 was included in the other income inthe current period.According to theNotice on Issuing Special Funds (Second Batch) for “MachineSubstitution for Humans” Project in 2014(WFG [2015] No. 18) issued by Development andReform Commission of Wuxing District, Huzhou and Finance Bureau of Wuxing District, thetechnical transformation subsidy of RMB 500,000.00 was appropriated by Finance Bureauof Wuxing District, Huzhou in 2015, relevant assets were allocated equally within theservice life, and RMB 50,000.00 was included in the other income in the current period.According to theNotice on Issuing Special Funds (Second Batch) for IndustrialDevelopment in Huzhou in 2018(HCQ [2018] No. 319) issued by Huzhou Finance and HuzhouEconomy and Information Bureau, the technical transformation subsidy of RMB 1,379,500.00was appropriated by Huzhou Finance in December 2018, relevant assets were allocatedequally within the service life, and RMB 137,950.00 was included in the other income in
the current period.According to theNotice on Appropriating Special Subsidy Fund for DemonstrationIntelligent Workshop in Wuxing District in 2019(WCQH [2020] No. 145) issued by HuzhouFinance and Development, Reform and Economic Information Technology Commission of WuxingDistrict, the technical transformation subsidy of RMB 2,000,000.00 was appropriated byFinance Bureau of Wuxing District, Huzhou in May 2020, relevant assets were allocatedequally within the service life, and RMB 116,666.67 was included in the other income inthe current period.
2) Government grants related to income, used to cover the accrued relevant costs orlosses
Item | Amount | Presentation item | the situation |
Utilization of municipal support funds for capital market in 2019 | 3,915,000.00 | Other income | According to the Supporting Opinions on Promoting the Financial Innovation and Development of “Internet Plus” (XFG [2016] No. 1), it was appropriated by Xixi Sub-district Office and Liuxia Sub-district Office of the People's Government of Xihu District, Hangzhou |
Enterprise scale award for municipal “Kunpeng Plan” | 1,000,000.00 | Other income | According to the Notice on Declaration for Scale Award of Large Enterprises and Groups under "Kunpeng Plan" in 2019 issued by Hangzhou Municipal Bureau of Economy and Information Technology (HJXYX [2020] No. 98), it was appropriated by Hangzhou Municipal Bureau of Economy and Information Technology |
Post stability subsidies | 530,528.03 | Other income | According to the Opinions of CPC Zhejiang Provincial Committee and Zhejiang Provincial People's Government on Fight against COVID-19 as well as Stable Enterprises, Stable Economy and Stable Development, Notice of Zhejiang Province Human Resources and Social Security Department and Zhejiang Provincial Department of Finance on Implementation of the Policy for Steady Work and Refund with Unemployment Insurance in 2020, Notice on Further Implementation of the Work for Steady Work with Unemployment Insurance (ZWF [2020] No. 4, ZRSF [2020] No. 10), it was appropriated by Hangzhou Employment Service Center |
Special subsidy for municipal Industry and information technology, invention patent | 4,757,125.48 | Other income | Appropriated by Liuxia Sub-district Office of the People's Government of Xihu District, Hangzhou, Huzhou Finance, Hangzhou Finance Bureau, Finance Bureau of Qingpu District, |
subsidy, special subsidy for e-commerce, financial support fund from Qingpu Finance Bureau, district subsidy for provincial leading innovation team, special subsidy for service industry, two-direct subsidy, etc. | Shanghai, Finance Bureau of Wuxing District, Huzhou, Human Resources and Social Security Bureau of Wuxing District, Huzhou, Market Supervision Administration of Xihu, Hangzhou, etc. | ||
Subtotal | 10,202,653.51 |
(2) The government grant included in the current profit or loss was RMB 12,198,410.18in the current period.
85 Others
□ Applicable√ Not applicable
VIII Change in Consolidation Scope1 Consolidation not under common control
√ Applicable□ Not applicable
(1). Consolidation not under common control occurring in the current period
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Name of acquiree | Equity acquisition time | Equity acquisition cost | Equity acquisition percentage (%) | Equity acquisition type | Date of acquisition | Basis for determining the acquisition date | Income of acquiree from the acquisition date to the end of the period | Net profit of acquiree from the acquisition date to the end of the period |
Shanghai Healthlong Biochemical Technology Co., Ltd. | October 2020 | 110,500,000.00 | 52.00 | Consolidation not under common control | October 2020 | Completion of property right transfer and obtaining of control | 181,257,879.50 | -6,640,391.94 |
Other particulars:
None
(2). Consolidation cost and goodwill
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Combination cost | Shanghai Healthlong Biochemical Technology Co., Ltd. |
--Cash | 110,500,000.00 |
--Fair value of non-cash assets | |
--Fair value of the debts issued or assumed | |
--Fair value of the equity securities issued | |
--Fair value of contingent consideration | |
--Acquisition-date fair value of the equity held before the acquisition date | |
--Others | |
Total combination cost | 110,500,000.00 |
Less: Fair value share of the identifiable net assets acquired | 79,465,838.80 |
Goodwill/Amount of the combination cost below fair value share of the identifiable net assets acquired | 31,034,161.20 |
Description on determination method for fair value of combination cost, contingentconsideration and its change:
None
Main reason for the formation of large-amount goodwill:
None
Other particulars:
The fair value share of the net identifiable assets acquired includes RMB 57.46million entitled by the Company as per the shareholding ratio in the capital increaseof RMB 110.5 million of the Company.
(3). Identifiable assets and liabilities of the acquiree on the acquisition date
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Shanghai Healthlong Biochemical Technology Co., Ltd. | ||
Fair value on the acquisition date | Carrying value on the acquisition date | |
Assets: | 171,243,990.12 | 171,243,990.12 |
Cash and equivalents | 66,052,759.40 | 66,052,759.40 |
Receivables | 5,746,539.14 | 5,746,539.14 |
Inventories | 8,431,333.75 | 8,431,333.75 |
Fixed assets | 1,298,177.42 | 1,298,177.42 |
Intangible assets | 304,454.08 | 304,454.08 |
Long-term prepaid | 775,036.70 | 775,036.70 |
expenses | ||
Prepayment | 38,318,670.27 | 38,318,670.27 |
Other receivables | 50,317,019.36 | 50,317,019.36 |
Liabilities: | 128,925,069.36 | 128,925,069.36 |
Borrowings | ||
Payables | 78,525,109.34 | 78,525,109.34 |
Deferred income tax liabilities | ||
Accounts received in advance | 20,272,794.03 | 20,272,794.03 |
Other payables | 16,504,326.42 | 16,504,326.42 |
Employee benefits payable | 1,224,371.90 | 1,224,371.90 |
Taxes payable | 12,398,467.67 | 12,398,467.67 |
Net assets | 42,318,920.76 | 42,318,920.76 |
Less: Minority equity | ||
Net assets acquired | 42,318,920.76 | 42,318,920.76 |
Determination method for fair value of identifiable assets and liabilities:
NoneContingent liabilities of acquiree assumed in the business combination:
NoneOther particulars:
None
(4). Gains or losses arising from the re-measurement of the equity held before the
acquisition date as per the fair valueWhether there is a transaction where a business combination is achieved stepwise throughmultiple transactions and the control is obtained within the Reporting Period
□ Applicable√ Not applicable
(5). Descriptions on the situation that it is unable to reasonably determine the
consolidation consideration or the fair value of identifiable assets and liabilities
of the acquiree on the acquisition date or at the end of the current consolidation
period
□ Applicable√ Not applicable
(6). Other particulars
□ Applicable√ Not applicable
2 Consolidation under common control
□ Applicable√ Not applicable
3 Reverse acquisition
□ Applicable√ Not applicable
4 Disposal of subsidiariesWhether there is a loss of control upon a single disposal of investment to subsidiaries
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Name of subsidiaries | Equity disposal price | Equity disposal ratio (%) | Equity disposal method | Time point of losing the control | Basis of determination of the time point of losing the control | Balance of net assets shares of subsidiaries corresponded by disposal of price and disposal of investment at the level of consolidated financial statements | Proportion of the remaining equities on the day of losing the control (%) | Carrying value of the remaining equities on the date of losing the control | Fair value of the remaining equities on the date of losing the control | Gains or losses arising from re-measurement of the remaining equities pursuant to the fair value | Determination method and main assumptions of the fair value of the remaining equities on the date of losing the control | |
Huzhou Tizhi Cosmetics Co., Ltd. | 4,106,289.39 | 51.00 | Sales | April 2020 | Control loss upon completion of property right transfer | 261,034.21 |
Other particulars:
□ Applicable√ Not applicable
5 Change in consolidation scope due to other reasonsDescriptions on changes in the scope of consolidated financial statements for other reasons (e.g., establishing subsidiaries, clearingsubsidiaries, etc.) and their related circumstances:
√ Applicable□ Not applicable
1. Increase of consolidation scope
Company Name | Equity acquisition type | Equity acquisition time | Amount of contribution | Contribution ratio (%) |
Hong Kong Xuchen Trading Limited | New subsidiaries | March 2020 | 0.00 | 100.00 |
BOYA (Hong Kong) Investment Management Co., Limited | New subsidiaries | March 2020 | 0.00 | 100.00 |
Proya Europe SARL | New subsidiaries | April 2020 | 90,685.20 | 100.00 |
Zhejiang Qingya Culture Art Communication Co., Ltd. | New subsidiaries | May 2020 | 550,000.00 | 55.00 |
Hangzhou Weiluoke Cosmetics Co., Ltd. [Note] | New subsidiaries | July 2020 | 3,907,664.00 | 100.00 |
Hangzhou Yizhuo Culture Media Co., Ltd. | New subsidiaries | July 2020 | 1,000,000.00 | 100.00 |
P.R.O CO., LTD. | New subsidiaries | August 2020 | 0.00 | 95.00 |
Hangzhou Tiedingxian Catering Management Co., Ltd. | New subsidiaries | August 2020 | 2,000,000.00 | 80.00 |
Hangzhou Tielexin Aini Catering Management Co., Ltd. | New subsidiaries | August 2020 | 500,000.00 | 100.00 |
Hangzhou Xiake Bar Catering Management Co., Ltd. | New subsidiaries | August 2020 | 2,500,000.00 | 100.00 |
Hangzhou Proya Snail Fitness Co., Ltd. | New subsidiaries | August 2020 | 1,000,000.00 | 100.00 |
Hangzhou Qingyan Cosmetics Co., Ltd. | New subsidiaries | August 2020 | 0.00 | 51.00 |
Hangzhou Oumisi Trading Co., Ltd. | New subsidiaries | August 2020 | 2,000,000.00 | 100.00 |
Huzhou Poyun Electronic Commerce Co., Ltd. | New subsidiaries | September 2020 | 1,200,000.00 | 60.00 |
Guangzhou Qianxi Network Technology Co., Ltd. | New subsidiaries | October 2020 | 1,000,000.00 | 100.00 |
[Note] Hangzhou Weiluoke Cosmetics Co., Ltd. is jointly contributed by the Company and Hong Kong Xinghuo Industry Limited, with the total amount ofRMB 3,907,664.00.
2. Decrease of consolidation scope
Company Name | Equity disposal method | Time point of disposal of equity | Net assets on disposal date | Net profit from the beginning of the period to the disposal date |
Hangzhou Qingyan Cosmetics Co., Ltd. | Cancellation | December 2020 | 993,316.79 | -6,683.21 |
6 Others
□ Applicable√ Not applicable
IX Equity in Other Entities1 Equity in subsidiaries
(1). Composition of the enterprise group
√ Applicable□ Not applicable
Name of subsidiaries | Main place of business | Registered address | Nature of the business | Shareholding ratio (%) | Mode of acquisition | |
Direct | Indirect | |||||
Hangzhou Proya Trade Co., Ltd. | Hangzhou | Hangzhou | Wholesale and retail business | 100.00 | Establishment | |
Zhejiang Meiligu Electronic Commerce Co., Ltd. | Hangzhou | Hangzhou | Wholesale and retail business | 100.00 | Establishment | |
Huzhou Chuangdai E-commerce Co., Ltd. | Huzhou | Huzhou | Wholesale and retail business | 100.00 | Establishment | |
Hapsode (Hangzhou) Cosmetics Co., Ltd. | Hangzhou | Hangzhou | Wholesale and retail business | 100.00 | Establishment | |
Huzhou UZERO Trading Co., Ltd. | Huzhou | Huzhou | Wholesale and retail business | 100.00 | Establishment | |
Hong Kong Xinghuo Industry Limited | Hong Kong | Hong Kong | Wholesale and retail business | 100.00 | Establishment | |
HONGKONG KESHI TRADING LIMITED | Hong Kong | Hong Kong | Wholesale and retail business | 52.00 | Establishment | |
Ningbo Keshi Trading Limited | Ningbo | Ningbo | Wholesale and retail business | 52.00 | Establishment | |
Ningbo TIMAGE Cosmetics Co., Ltd. | Ningbo | Ningbo | Wholesale and retail business | 61.36 | Establishment | |
Shanghai Healthlong Biochemical Technology Co., Ltd. | Shanghai | Shanghai | Wholesale and retail business | 52.00 | Consolidation not under common control |
Descriptions on the situation that the shareholding ratio in the subsidiary is differentfrom the share of the voting rights:
None
Basis for holding half or less of the voting rights of the investee but still controllingthe investee and holding more than half of the voting rights but not controlling theinvestee:
None
Basis for controlling important structured entities included in the scope of consolidatedfinancial statements:
None
Basis for determining whether the Company is an agent or a principal:
None
Other particulars:
None
(2). Important non-wholly-owned subsidiaries
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Name of subsidiaries | Shareholding ratio of minority shareholders | Profits and losses attributable to minority shareholders in the current period | Dividends declared and distributed to minority shareholders in the current period | Minority equity balance at the end of the period |
HONGKONG KESHI TRADING LIMITED | 48.00% | -5,981,584.30 | 17,365,581.26 | |
Ningbo Keshi Trading Limited | 48.00% | -3,917,661.02 | -5,614,155.64 | |
Ningbo TIMAGE Cosmetics Co., Ltd. | 38.64% | -5,345,955.31 | -8,636,628.03 | |
Shanghai Healthlong Biochemical Technology Co., Ltd. | 48.00% | -3,187,388.13 | 70,165,693.83 |
Descriptions on the situation that the shareholding ratio of minority shareholders inthe subsidiary is different from that of the voting rights:
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
(3). Major financial information of important non-wholly-owned subsidiaries
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Name of subsidiaries | Closing balance | Opening balance | ||||||||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
HONGKONG KESHI TRADING LIMITED | 81,655,123.48 | 81,655,123.48 | 50,824,197.54 | 50,824,197.54 | 155,419,174.42 | 155,419,174.42 | 116,404,509.18 | 116,404,509.18 | ||||
Ningbo Keshi Trading Limited | 10,518,765.49 | 10,518,765.49 | 22,214,923.08 | 22,214,923.08 | 4,866,629.16 | 45,000.00 | 4,911,629.16 | 8,445,992.96 | 8,445,992.96 | |||
Ningbo TIMAGE Cosmetics Co., Ltd. | 42,477,967.12 | 85,010.07 | 42,562,977.19 | 64,300,899.00 | 64,300,899.00 | 4,383,228.97 | 4,383,228.97 | 7,454,712.50 | 7,454,712.50 | |||
Shanghai Healthlong Biochemical Technology Co., Ltd. | 163,008,518.70 | 3,945,885.57 | 166,954,404.27 | 20,775,875.45 | 20,775,875.45 |
Name of | Amount accounted for in the current | Amount accounted for in the previous |
subsidiaries | period | period | ||||||
Revenue | Net profit | Total comprehensive income | Cash flow from operating activities | Revenue | Net profit | Total comprehensive income | Cash flow from operating activities | |
HONGKONG KESHI TRADING LIMITED | 115,636,625.15 | -8,183,739.30 | -8,183,739.30 | 3,713,547.69 | 135,818,021.02 | 4,278,174.24 | 4,278,174.24 | -13,269,802.15 |
Ningbo Keshi Trading Limited | 11,342,789.14 | -8,161,793.79 | -8,161,793.79 | -3,229,770.29 | 738,107.69 | -4,534,363.80 | -4,534,363.80 | -235,670.94 |
Ningbo TIMAGE Cosmetics Co., Ltd. | 176,461,811.57 | -18,666,438.28 | -18,666,438.28 | 4,907,611.95 | -3,685,083.53 | -3,685,083.53 | 794,443.17 | |
Shanghai Healthlong Biochemical Technology Co., Ltd. | 181,257,879.50 | -6,640,391.94 | -6,640,391.94 | -72,438,611.71 |
Other particulars:
None
(4). Significant restrictions on the use of corporate group assets and the liquidation
of corporate group debts
□ Applicable√ Not applicable
(5). Financial support or other supports provided to structured entities included in thescope of consolidated financial statements
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
2 Transaction resulting in change of owner’s equity proportion in subsidiaries butstill in control of the subsidiaries
√ Applicable□ Not applicable
(1). Description on change of owner’s equity proportion in subsidiaries
√ Applicable□ Not applicable
Name of subsidiaries | Change date | Shareholding ratio before change | Shareholding ratio after change |
Huzhou UZERO Trading Co., Ltd. | March 2020 | 95.00% | 100.00% |
Zhejiang Biyouti Cosmetics Co., Ltd. | May 2020 | 100.00% | 95.00% |
Shanghai Zhongwen Electronic Commerce Co., Limited | September 2020 | 53.00% | 83.00% |
Hong Kong Zhongwen Electronic Commerce Co., Limited | September 2020 | 53.00% | 83.00% |
Ningbo TIMAGE Cosmetics Co., Ltd. | November 2020 | 55.22% | 61.36% |
(2). Influence of transactions on minority shareholders’ equity and equity attributableto shareholders of the parent company
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Huzhou UZERO Trading Co., Ltd. | Shanghai Zhongwen Electronic Commerce Co., Limited | Hong Kong Zhongwen Electronic Commerce Co., Limited | Ningbo TIMAGE Cosmetics Co., Ltd. | |
Purchase cost/disposal consideration | 100,000.00 | 15,350,000.00 | ||
--Cash | 100,000.00 | 15,350,000.00 | ||
--Fair value of non-cash assets | ||||
Total purchase cost/disposal consideration | 100,000.00 | 15,350,000.00 | ||
Less: Net assets of | -3,065,227.01 | -988,996.78 | -110,459.96 | 1,701,892.32 |
subsidiaries calculated as per the equity ratio of acquisition/disposal | ||||
Difference | 3,065,227.01 | 1,088,996.78 | 110,459.96 | 13,648,107.68 |
Where: Adjusted capital reserve | 3,065,227.01 | 1,088,996.78 | 110,459.96 | 13,648,107.68 |
Adjusted surplus reserve | ||||
Adjusted undistributed profits |
Other particulars
√ Applicable□ Not applicable
On 26 May 2020, the Resolution of Shareholders Meeting of Zhejiang Biyouti CosmeticsCo., Ltd. approved the registered capital increase of RMB 526,300 and the contributionof RMB 1.50 million by TEOH YONG WOOI, including RMB 526,300 as the paid-up capital andRMB 973,700 as the capital reserve. The difference between the share in carrying net assetof Biyouti calculated according to the shareholding ratio of the Company after the capitalincrease and that before the capital increase was RMB 31,298.05 and included in the capitalreserve.
3 Equity in joint ventures or associates
√ Applicable□ Not applicable
(1). Important joint ventures or associates
□ Applicable√ Not applicable
(2). Major financial information of important joint ventures
□ Applicable√ Not applicable
(3). Major financial information of important associates
□ Applicable√ Not applicable
(4). Summary financial information of unimportant joint ventures and associates
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Balance at the end of the period/Amount accounted for in the current period | Balance at the beginning of the period/Amount accounted for in the previous period | |
Joint ventures: | ||
Total carrying value of investments | 3,306,630.57 | 3,314,489.57 |
Total of the following items calculated according to the shareholding ratio |
--Net profits | -7,859.00 | -882,267.90 |
--Other comprehensive income | ||
--Total comprehensive income | -7,859.00 | -882,267.90 |
Associates: | ||
Total carrying value of investments | 54,913,429.03 | 11,413,514.11 |
Total of the following items calculated according to the shareholding ratio | ||
--Net profits | -638,756.60 | -1,648,070.06 |
--Other comprehensive income | ||
--Total comprehensive income | -638,756.60 | -1,648,070.06 |
Other particularsNone
(5). Descriptions on significant limitation of the ability of a joint venture or associate
to transfer funds to the Company
□ Applicable√ Not applicable
(6). Excess losses incurred by a joint venture or associate
□ Applicable√ Not applicable
(7). Unrecognized commitments related to joint venture investment
□ Applicable√ Not applicable
(8). Contingent liabilities related to joint venture or associate investment
□ Applicable√ Not applicable
4 Important joint operations
□ Applicable√ Not applicable
5 Equity in structured entities not included in the consolidated financial statementsDescriptions on structured entities not included in the consolidated financialstatements:
□ Applicable√ Not applicable
6 Others
□ Applicable√ Not applicable
X Risks Associated with Financial Instruments
√ Applicable□ Not applicable
The Company's risk management objective is to achieve balance between risks andreturns and minimize the negative impact of risks on our results of operations, so asto maximize interests of shareholders and other equity investors. Based on this riskmanagement objective, the basic strategy of the Company's risk management is to identifyand analyze the risks faced by the Company, establish appropriate baseline risk toleranceand carry out risk management, and monitor various risks in a timely and reliable manner,so as to control the risks within a limited range.The Company is faced with different risks related to financial instruments duringdaily activities, mainly including credit risk, liquidity risk and market risk. TheCompany’s management has examined and approved policies for managing these risks, whichcan be summarized as follows.(I) Credit riskCredit risk refers to the risk that may bring financial loss to one party of thefinancial instrument caused by the other party’s failure to perform its obligations inthe contract.
1. Practice of credit risk management
(1) Assessment method of credit risk
The Company, on each balance sheet date, assesses whether the credit risk of relevantfinancial instruments has increased significantly since initial recognition. Indetermining whether the credit risk has increased significantly since initial recognition,the Company takes into account the reasonable and well-founded information availablewithout unnecessary additional costs or efforts, including qualitative and quantitativeanalysis based on historical data, external credit risk rating and forward-lookinginformation. The Company determines the changes that may result in default risk offinancial instruments within their expected duration by comparing the default risk ofthe financial instruments on the balance sheet date and the initial recognition date basedon an individual financial instrument or the combined financial instruments with similarcredit risk characteristics.
The Company deems that the credit risk of the financial instruments has increasedsignificantly if any one or more of the following quantitative and qualitative standardsare triggered:
1) The main quantitative standard is that the probability of default within theremaining duration on the balance sheet date has increased by more than certain proportioncompared with that at the initial recognition;
2) The main qualitative standard is that there are material adverse changes occurringto the business or financial conditions of the debtor and changes in the exiting oranticipated technology, market, economic or legal environment which have a materialadverse effect on the debtor’s ability to make repayment to the Company.
(2) Definitions of default and assets with credit impairment
If the financial instruments meet any one or more of the following conditions, theCompany defines the financial assets as in default, with its standard consistent withthe definition of credit impairment:
1) The debtor faces major financial difficulties;
2) The debtor breaches the governing provisions for it in the contract;
3) The debtor is very likely to become bankrupt or undergo other financialrestructuring proceedings;
4) The creditor makes a concession to the debtor which it will not make under anyother circumstances for the economic or contractual considerations in connection withthe debtor’s financial difficulties;
2. Measurement of expected credit loss
The key parameters for measurement of expected credit loss include the probabilityof default, loss given default and default risk exposure. The Company builds the modelof probability of default, loss given default and default risk exposure considering thequantitative analysis of historical statistical data (such as counterparty rating,guarantee type, category of collateral and pledge, repayment method) and forward-lookinginformation.
3. Refer to the particulars of VII.5, VII.6 and VII.8 in “Section XI Financial Report”herein for the opening balance and closing balance reconciliation sheet of financialinstrument loss provisions.
4. Credit risk exposure and credit risk concentration
The credit risk of the Company is mainly from the monetary capital and receivables.To control the above related risk, the Company has respectively taken the followingmeasures.
(1) Monetary capital
The bank deposit and other monetary capitals of the Company were deposited at
financial institutions with high credit rating; therefore, the credit risk was low.
(2) Receivables
The Company continuously carries out credit assessment on customers who trade in
credit. According to the result of credit assessment, the Company deals with the approvedcustomers with good credit, and monitors the balance of its receivables, so as to preventa significant risk of bad debt.No guarantee is required as the Company only transacts with recognized and reputablethird parties. Credit risk concentration is managed as per customers. As of 31 December2020, there was certain credit risk concentration in the Company and 49.42% (31 December2019: 56.80%) of the accounts receivable of the Company was from the customers with abalance ranking top 5. The Company had no guarantee or other credit enhancements on thebalance of the accounts receivable.The maximum credit risk exposure of the Company is the carrying value of the financialassets in the balance sheet.
(II) Liquidity riskLiquidity risk refers to the risk of a shortage of funds of the Company when the Companyis performing its obligation to settle in the form of delivery of cash or other financialassets. Liquidity risk may be from the inability to sell financial assets at fair valueas soon as possible, the other party’ inability to pay off its contractual debt, thedebt due in advance or the inability to generate anticipated cash flow.To control such risk, the Company applies various financing methods, such as clearingand bank loans, in appropriate combination of long and short-term financing ways tooptimize the financing structure and keep the balance between financing sustainabilityand flexibility. The Company has obtained line of credit from several commercial banksto meet the working capital demand and capital expenditure.
Financial liabilities classified as per the remaining due date
Item | Closing balance | ||||
Carrying value | Undiscounted contract value | Within 1 year | 1-3 years | Above 3 years | |
Bank loans | 299,280,435.09 | 306,965,009.72 | 306,965,009.72 | ||
Bills payable | 64,580,000.00 | 64,580,000.00 | 64,580,000.00 | ||
Accounts payable | 515,832,031.27 | 515,832,031.27 | 515,832,031.27 | ||
Other payables | 75,546,323.32 | 75,546,323.32 | 75,546,323.32 |
Subtotal | 955,238,789.68 | 962,923,364.31 | 962,923,364.31 |
(Continued)
Item | Year-end balance of last year | ||||
Carrying value | Undiscounted contract value | Within 1 year | 1-3 years | Above 3 years | |
Bank loans | 214,305,644.20 | 217,020,041.44 | 217,020,041.44 | ||
Bills payable | 41,830,948.53 | 41,830,948.53 | 41,830,948.53 | ||
Accounts payable | 347,316,843.39 | 347,316,843.39 | 347,316,843.39 | ||
Other payables | 91,444,673.31 | 91,444,673.31 | 91,444,673.31 | ||
Subtotal | 694,898,109.43 | 697,612,506.67 | 697,612,506.67 |
(III) Market riskMarket risk refers to the risk of fluctuating fair value of the financial instrumentsor future cash flow due to the change of the market price. Market risk mainly includesinterest rate risk and foreign exchange risk.
1. Interest rate risk
Interest rate risk refers to the risk of fluctuating fair value of the financialinstruments or future cash flow due to the change of the market interest rate. Theinterest-bearing financial instruments with a fixed interest rate put the Company at theinterest rate risk of fair value and those with a floating interest rate put the Companyat the interest rate risk of cash flow. The Company determines the proportion of financialinstruments with a fixed interest rate and floating interest rate according to the marketenvironment, and maintains an appropriate combination of financial instruments throughregular review and monitoring.
2. Foreign exchange risk
Foreign exchange risk refers to the risk of fluctuating fair value of the financialinstruments or future cash flow due to the change of foreign exchange rate. The risk offoreign exchange rate changes faced by the Company is mainly related to the Company'sforeign currency assets and liabilities. The Company carries out business in the Chinesemainland, with the main activities valuated in RMB. Therefore, the market risk of foreignexchange changes faced by the Company is not material.
See VII.82 in “Section XI Financial Report” of this report for particulars on the
foreign currency assets and liabilities of the Company at the end of the period.
XI Disclosure of Fair Value1 Closing fair value of assets and liabilities measured at fair value
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing fair value | |||
Level-1 fair value measurement | Level-2 fair value measurement | Level-3 fair value measurement | Total | |
I. Continuous fair value measurement | ||||
(I) Held-for-trading financial assets | ||||
1. Financial assets at fair value through profit or loss | ||||
(1) Debt instrument investment | ||||
(2) Equity instrument investment | ||||
(3) Derivative financial assets | ||||
2. Financial asset designated as at fair value through profit or loss | ||||
(1) Debt instrument investment | ||||
(2) Equity instrument investment | ||||
(II) Other debt investments | ||||
(III) Other equity instrument investments | ||||
(IV) Investment real estate | ||||
1. Land use rights used for rent | ||||
2. Rental buildings | ||||
3. Land use rights held and ready to be transferred after appreciation | ||||
(V) Biological assets | ||||
1. Consumable biological assets | ||||
2. Productive |
biological assets | ||||
(VI) Receivables financing | 5,531,997.32 | 5,531,997.32 | ||
Total assets continuously measured at fair value | 5,531,997.32 | 5,531,997.32 | ||
(VI) Held-for-trading financial liabilities | ||||
1. Financial liabilities at fair value through profit or loss | ||||
Where: Tradable bonds issued | ||||
Derivative financial liabilities | ||||
Others | ||||
2. Financial liabilities designated to be measured as per fair value, with their changes included in the current profit or loss | ||||
Total liabilities continuously measured at fair value | ||||
II. Non-continuous fair value measurement | ||||
(I) Assets held for sale | ||||
Total assets not continuously measured at fair value | ||||
Total liabilities not continuously measured at fair value |
2 Basis for determining market prices of items continuously and not continuously
measured at the first-level fair value
□ Applicable√ Not applicable
3 Qualitative and quantitative information on valuation techniques and important
parameters adopted by items continuously and not continuously measured at thesecond-level fair value
□ Applicable√ Not applicable
4 Qualitative and quantitative information on valuation techniques and importantparameters adopted by items continuously and not continuously measured at thethird-level fair value
√ Applicable□ Not applicable
The fair value of the notes receivable held is determined by their nominal amount.
5 Information on reconciliation between the beginning carrying value and the closing carrying
value of items continuously measured at the third-level fair value and sensitivity analysis onunobservable parameters
□ Applicable√ Not applicable
6 For items continuously measured at fair value, in case of any conversion between various levels
in the current period, reasons for the conversion and policies to determine the conversion timeshould be provided
□ Applicable√ Not applicable
7 Changes in valuation techniques and reasons for changes in the current period
□ Applicable√ Not applicable
8 Particulars on fair value of financial assets and liabilities which are not measured at fair value
□ Applicable√ Not applicable
9 Others
□ Applicable√ Not applicable
XII Related Parties and Related-party Transactions1 Particulars on the parent company of the Company
□ Applicable√ Not applicable
2 Particulars on subsidiaries of the CompanyParticulars on subsidiaries of the Company are shown in the relevant notes
√ Applicable□ Not applicable
See Note IX in Section XI of this Report for the particulars on subsidiaries of the Company.
3 Particulars on joint ventures and associates of the CompanyFor important joint ventures and associates of the Company, see the Notes for details
□ Applicable√ Not applicable
Particulars on other joint ventures and associates which have related-party transactionswith the Company in the current period or had related-party transactions with the Companyin the previous period and form balances are as follows
□ Applicable√ Not applicable
Other particulars
□ Applicable√ Not applicable
4 Particulars on other related parties
√ Applicable□ Not applicable
Name of other related parties | Relationship between other related parties and |
the Company | |
Chu Xiuqi | Others |
Zhejiang Yueqing Rural Commercial Bank Company Limited | Others |
Huzhou Meizhuang Town Science and Technology Incubation Park Co., Ltd. | Others |
Raohe Ussuri River Rice Industry Co., Ltd. | Others |
China Commerce Association for General Merchandise | Others |
Xiongke Culture Media (Hangzhou) Co., Ltd. | Others |
Beijing Mitangpai Cosmetics Co., Ltd. [Note] | Others |
Metis Info Tech (Guangzhou) Co., LTD. | Others |
Hangzhou Regenovo Biotechnology., Ltd. | Others |
Zhuhai Healthlong Biotechnology Co., Ltd. | Others |
Shaoxing Keqiao Qingteng Culture Investment Co., Ltd. | Others |
PARISEZHAN HK LIMITED | Others |
EURL PHARMATICA | Others |
SARL ORTUS | Others |
S.A.S AREDIS | Others |
Korea Youke Co., Ltd. | Others |
Shanghai Youke Brand Management Co., Ltd. | Others |
Pan Xiang | Others |
Other particulars[Note] Beijing Mitangpai Cosmetics Co., Ltd. was cancelled in August 2020.
5 Particulars on related-party transactions
(1). Related-party transactions for the purchase and sales of goods and the rendering
and receipt of servicesTable of information on the purchase of goods/the receipt of services
√ Applicable□ Not applicable
Unit: RMB 0’000 Currency: RMB
Related party | Related-party transaction content | Amount accounted for in the current period | Amount accounted for in the previous period |
Zhuhai Healthlong Biotechnology Co., Ltd. | Procurement of goods | 2,914.13 | |
EURL PHARMATICA [Note] | Procurement of goods | 2,908.10 | 3,023.88 |
SARL ORTUS [Note] | Procurement of goods | 959.72 | 962.16 |
Metis Info Tech (Guangzhou) Co., LTD. | Advertising and communication service fees | 203.88 | 1,262.47 |
Hangzhou Regenovo Biotechnology., Ltd. | R&D and design fees | 120.00 | |
S.A.S AREDIS [Note] | Procurement of goods | 117.16 | 274.11 |
Shaoxing Keqiao Qingteng Culture Investment Co., Ltd. | Procurement of goods | 54.08 | |
Beijing Mitangpai Cosmetics Co., Ltd. | Procurement of goods | 10.00 | |
Xiongke Culture Media (Hangzhou) Co., Ltd. | Consulting fees, video production services | 0.53 | 164.18 |
China Commerce Association for General Merchandise | Membership fee | 0.50 | 0.50 |
PARISEZHAN HK LIMITED [Note] | Procurement of goods | 8,198.96 | |
Korea Youke Co., Ltd. | Procurement of goods | 744.54 | |
Raohe Ussuri River Rice Industry Co., Ltd. | Purchase of rice | 7.49 |
[Note] The Company and PARISEZHAN HK LIMITED entered into theInvestment CooperationContractand a Supplementary Agreement (hereinafter collectively referred to as“Investment Agreement”) in 2019. According to the Investment Agreement, the Partieswill jointly found HONGKONG KESHI TRADING LIMITED, to which PARISEZHAN HK LIMITED andits shareholders agree to transfer its brand agency services (including Boiron andPuressentiel), cross-border e-commerce business, online Tmall International Store, etc.After founding HONGKONG KESHI TRADING LIMITED, the Parties completed the businesshandover and transferred the online store to HONGKONG KESHI TRADING LIMITED for operation.Before completion of the change of registration information of the store, HONGKONG KESHITRADING LIMITED carries out sales through the online store, with the payment for goodsand promotion expenses collected and paid by PARISEZHAN HK LIMITED. PARISEZHAN HK LIMITEDhas collected the sales volume of RMB 10,296,200 through the online store and paid thestore promotion expenses of RMB 675,300 in the current period.
Meanwhile, pursuant to the investment agreement, PARISEZHAN HK LIMITED agreed thatthe business of EURL PHARMATICA, SARL ORTUS and S.A.S AREDIS controlled by PARISEZHAN
HK LIMITED and its shareholders would be transferred into HONGKONG KESHI TRADING LIMITEDwithin 12 months from the date of officially becoming a shareholder of HONGKONG KESHITRADING LIMITED (subject to the industrial and commercial registration), and EURLPHARMATICA, SARL ORTUS and SARL ORTUS would no longer engage in business competing withthe Company and HONGKONG KESHI TRADING LIMITED. As at 31 December 2020, EURL PHARMATICA,SARL ORTUS and S.A.S AREDIS have not transferred related business to HONGKONG KESHITRADING LIMITED due to overseas COVID-19 pandemic situation, business directionadjustment of the Company, etc.
Table of information on the sale of goods/the rendering of services
√ Applicable□ Not applicable
Unit: RMB 0’000 Currency: RMB
Related party | Related-party transaction content | Amount accounted for in the current period | Amount accounted for in the previous period |
Shanghai Youke Brand Management Co., Ltd. | Sales of goods | 5,672.40 | |
Korea Youke Co., Ltd. | Sales of goods | 630.03 | 813.22 |
Beijing Mitangpai Cosmetics Co., Ltd. | Sales of goods, agent operation services | 224.53 | 139.44 |
Shaoxing Keqiao Qingteng Culture Investment Co., Ltd. | Sales of goods | 0.71 | |
PARISEZHAN HK LIMITED | Sales of goods | 248.09 |
Particulars on related-party transactions for the purchase and sales of goods and therendering and receipt of services
□ Applicable√ Not applicable
(2). Particulars on related-party entrusted management/contracting and entrustingmanagement/outsourcingTable of information on the Company's entrusted management/contracting:
□ Applicable√ Not applicable
Particulars on related-party entrusting/contracting
□ Applicable√ Not applicable
Table of information on the Company's entrusting management/outsourcing
□ Applicable√ Not applicable
Particulars on related-party management/outsourcing
□ Applicable√ Not applicable
(3). Particulars on related-party leases
The Company as the lessor:
□ Applicable√ Not applicable
The Company as the lessee:
√ Applicable□ Not applicable
Unit: RMB 0’000 Currency: RMB
Name of lessor | Types of leased assets | Rental fee recognized in the current period | Rental fee recognized in the previous period |
Huzhou Meizhuang Town Science and Technology Incubation Park Co., Ltd. | Plant | 65.26 | 42.64 |
Descriptions on related-party leases
□ Applicable√ Not applicable
(4). Particulars on related-party guarantees
The Company as a guarantor
□ Applicable√ Not applicable
The Company as a guaranteed party
□ Applicable√ Not applicable
Descriptions on related-party guarantees
□ Applicable√ Not applicable
(5). Related-party fund lending
□ Applicable√ Not applicable
(6). Particulars on related-party asset transfer and debt restructuring
□ Applicable√ Not applicable
(7). Compensation of key management personnel
√ Applicable□ Not applicable
Unit: RMB 0’000 Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Compensation of key management personnel | 734.87 | 731.15 |
(8). Other related-party transactions
√ Applicable□ Not applicable
The Company and its subsidiaries have opened bank accounts in Zhejiang Yueqing RuralCommercial Bank Company Limited and collected the interest on deposit according to the marketinterest rate.
(1) Deposit in related-party bank
Unit: RMB 0’000
Related party | Related-party transaction content | Closing balance | Opening balance |
Zhejiang Yueqing Rural Commercial Bank Company Limited | Cash at bank | 14,390.77 | 12,149.26 |
(2) Interest collection from related party
Unit: RMB 0’000
Related party | Related-party transaction content | Amount in the current period | Balance in last period |
Zhejiang Yueqing Rural Commercial Bank Company Limited | Interest income | 593.97 | 513.91 |
6 Receivables from and payables to related parties
(1). Receivables
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Items | Related party | Closing balance | Opening balance | ||
Carrying balance | Bad debt provisions | Carrying balance | Bad debt provisions | ||
Accounts receivable | |||||
Beijing Mitangpai Cosmetics Co., Ltd. | 1,436,213.74 | 71,810.69 | |||
Subtotal | 1,436,213.74 | 71,810.69 | |||
Prepayment | |||||
Zhuhai Healthlong Biotechnology Co., Ltd. | 21,432,452.28 | ||||
Huzhou Meizhuang Town Science and Technology Incubation Park Co., Ltd. | 44,000.00 | 1,000.00 | |||
Shanghai Youke Brand Management Co., Ltd. | 39,150.95 | ||||
EURL PHARMATICA [Note] | 16,860,085.06 | ||||
Xiongke Culture Media | 5,300.00 |
(Hangzhou) Co., Ltd. | |||||
Subtotal | 21,515,603.23 | 16,866,385.06 | |||
Other receivables | |||||
EURL PHARMATICA [Note] | 24,167,639.75 | 1,208,381.99 | 5,004,666.01 | 250,233.30 | |
Huzhou Meizhuang Town Science and Technology Incubation Park Co., Ltd. | 132,568.20 | 61,770.46 | 132,568.20 | 34,128.41 | |
Pan Xiang | 75,000.00 | 22,500.00 | 75,000.00 | 3,750.00 | |
Beijing Mitangpai Cosmetics Co., Ltd. | 27,000.00 | 1,350.00 | |||
Subtotal | 24,375,207.95 | 1,292,652.45 | 5,239,234.21 | 289,461.71 |
[Note] The item EURL PHARMATICA refers to the consolidated statistics of EURLPHARMATICA, PARISEZHAN HK LIMITED, SARL ORTUS and S.A.S AREDIS under the control of thesame person.
(2). Payables
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Items | Related party | Carrying balance at the end of the period | Carrying balance at the beginning of the period |
Accounts payable | |||
Metis Info Tech (Guangzhou) Co., LTD. | 99,718.88 | ||
S.A.S AREDIS | 263,358.19 | ||
Huzhou Meizhuang Town Science and Technology Incubation Park Co., Ltd. | 126,303.38 | ||
Subtotal | 363,077.07 | 126,303.38 | |
Contract liabilities | |||
Shanghai Youke Brand Management Co., Ltd. | 34,200.00 |
Subtotal | 34,200.00 |
7 Related-party commitments
□ Applicable√ Not applicable
8 Others
□ Applicable√ Not applicable
XIII Share-based payments1 Overall situation of share-based payment
√ Applicable□ Not applicable
Unit: Share Currency: RMB
Total amount of equity instruments granted by the Company in the current period | Not applicable |
Total amount of equity instruments exercised by the Company in the current period | |
Total amount of equity instruments invalid in the Company in the current period | 152,635 |
Range of the exercise price for outstanding share options of the Company at the end of the period, and the remaining contract term | Not applicable |
Other particulars
On 12 July 2018, according to theProposal on the Restricted Share Incentive Planof the Company in 2018 (Draft) and Its Summaryreviewed and adopted at the FirstExtraordinary General Meeting of the Company in 2018 and to the Incentive Plan, the Companyproposed to grant no more than 1.4672 million restricted shares to incentive objects,where 1.2011 million stocks would be initially granted and 266,100 stocks would bereserved. The initial grant date of the restricted shares is 12 July 2018, the incentiveobjects include senior management, middle management and backbone employees working forthe Company (excluding the independent directors and supervisors, the shareholder oractual controller severally or jointly holding more than 5% shares in the Company andits spouse, parents and children), with 32 persons in total, and the grant price is RMB
17.95/share. The subject shares involved in this Incentive Plan is from the Class Aordinary shares of the Company introduced to the incentive objects by the Company. Thevalidity period of this Incentive Plan is from the date when the registration of the grantof restricted shares was completed to the date when all the restricted shares grantedto the incentive objects are exempt from restricted sales or repurchased and cancelled,
with the maximum period no more than 60 months. The granted restricted shares will beexempt from restricted sales within 36 months in three phases after 12 months of initialgrant of the restricted shares, with the proportion in three phases respectively as 30%,30% and 40%. The performance condition for exempting from restricted sales in phase 1is that: On the basis of the operating revenue and net profit in 2017, the growth rateof operating revenue and net profit in 2018 was respectively no less than 30.8% and 30.1%.The performance condition for exempting from restricted sales in phase 2 is that: On thebasis of the operating revenue and net profit in 2017, the growth rate of operating revenueand net profit in 2019 was respectively no less than 74.24% and 71.21%. The performancecondition for exempting from restricted sales in phase 3 is that: On the basis of theoperating revenue and net profit in 2017, the growth rate of operating revenue and netprofit in 2020 was respectively no less than 132.61% and 131.99%.On 12 July 2018, theProposal on Initial Grant of Restricted Shares to IncentiveObjects was reviewed and adopted at the 22
thmeeting of the First Session of the Boardof Directors of the Company to determine 12 July 2018 as the initial grant date. Someincentive objects voluntarily waived the subscription in practice and the number ofrestricted shares actually granted by the Company was 1.0962 million.On 12 December 2018, theProposal on Grant of Reserved Restricted Shares to IncentiveObjects was reviewed and adopted at the 3
rdmeeting of the Second Session of the Boardof Directors of the Company to determine 12 December 2018 as the grant date of the reservedrestricted shares. The incentive objects completed the subscription in practice and thenumber of restricted shares actually granted by the Company was 266,100.On 30 December 2019, theProposal on Achievement Conditions for Exempting fromRestricted Sales in Phase 1 of Initial Grant and Reserved Grant in the Restricted ShareIncentive Plan in 2018 was reviewed and adopted at the 10
thmeeting of the Second Sessionof the Board of Directors of the Company to lift 369,500 restricted shares held by theincentive objects meeting the conditions for exempting from the restricted sales in phase1, with the circulation date as 6 January 2020.According to theProposal on Repurchase and Cancellation of the Restricted SharesGranted to the Incentive Objects No Longer Meeting the Incentive Conditions But Not Exemptfrom Restricted Sales reviewed and adopted at the 4
thmeeting of the Second Session ofthe Board of Directors in 2019 and the First Extraordinary General Meeting in 2019, andtheProposal on Repurchase and Cancellation of Some Equity Incentive Restricted Shares
reviewed and adopted at the 8
thmeeting of the Second Session of the Board of Directors
in 2019, 92,740 restricted shares were repurchased and cancelled and the repurchase costof RMB 1,657,699.80 was paid because some incentive objects quitted the job or theirperformance assessment failed to meet the conditions for exempting from restricted salesof restricted shares in the current period.On 6 July 2020, according to theProposal on Adjusting the Performance AssessmentIndexes at Company Level in 2020 in the Restricted Share Incentive Plan in 2018 andRelevant Documentsreviewed and adopted at the Second Extraordinary General Meeting ofthe Company in 2020, the Company adjusted the performance assessment target in phase 3of exempting from restricted sales in the original incentive plan to that: on the basisof the operating revenue and net profit in 2017, the growth rate of the operating revenueand net profit in 2020 is respectively no less than 110.22% and 131.99%.
The equity instruments invalid in the current period were, in accordance with theresolutions at the 15
th and 16
th
meetings of the Second Session of the Board of Directorsin 2020 and theProposal on Repurchase and Cancellation of Some Equity IncentiveRestricted Sharesreviewed and adopted at the Third Extraordinary General Meeting in 2020,to repurchase and cancel 152,635 restricted shares and pay the repurchase cost of RMB2,584,110.55 because some incentive objects resigned or their performance assessmentfailed to meet the conditions for exempting from restricted sales of restricted sharesin the current period.
2 Particulars on equity-settled share-based payment
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Determination method for the fair value of equity instruments on the grant date | Determined as per the stock price on the grant date and the grant price of restricted shares |
Basis for determining the number of exercisable equity instruments | Determined according to the estimated performance conditions in the lifting period |
Reasons for significant differences between the estimates in the current period and the previous period | Not applicable |
Accumulative amount of equity-settled share-based payments included in the capital reserve | 53,943,573.13 |
Total expenses recognized by equity-settled share-based payments in the current period | 4,193,320.87 |
Other particularsNone
3 Particulars on cash-settled share-based payment
□ Applicable√ Not applicable
4 Particulars on modification and termination of share-based payment
□ Applicable√ Not applicable
5 Others
□ Applicable√ Not applicable
XIV Commitments and Contingencies1 Important commitments
√ Applicable□ Not applicable
Important external commitments, nature, and amount existing on the balance sheet date
In 18 October 2020, as approved by the 3
rdextraordinary general shareholders’ meeting in 2020,the Company was proposed to apply for public offering of A-share convertible bonds of not exceedingRMB 803,500,000, and the net amount of the funds raised for issuing of convertible bonds, net of issueexpenses, will be used for the following items:
Items | Total investment (00’000) | Raised fund to be invested |
Huzhou Production Base Expansion Project | 48,687.11 | 33,850.00 |
Longwu R&D Center Construction Project | 21,774.45 | 19,450.00 |
Information System Upgrade Project | 11,239.50 | 9,050.00 |
Additional working capital | 18,000.00 | 18,000.00 |
Total | 99,701.06 | 80,350.00 |
2 Contingencies
(1). Important contingencies on the balance sheet date
□ Applicable√ Not applicable
(2). If the Company has no important contingencies that need to be disclosed, explanationshall also be provided:
□ Applicable√ Not applicable
3 Others
□ Applicable√ Not applicable
XV Events after the Balance Sheet Date1 Important non-adjusting events
□ Applicable√ Not applicable
2 Profit distribution
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Profits or dividends proposed to be distributed | 144,804,186.00 |
Profits or dividends reviewed and approved to be declared for distribution | 144,804,186.00 |
3 Sales return
□ Applicable√ Not applicable
4 Description on other events after the balance sheet date
□ Applicable√ Not applicable
XVI Other Important Events1 Correction of accounting errors in previous period
(1). Retrospective restatement method
□ Applicable√ Not applicable
(2). Future application method
□ Applicable√ Not applicable
2 Debt restructuring
□ Applicable√ Not applicable
3 Assets replacement
(1). Non-monetary assets exchange
□ Applicable√ Not applicable
(2). Other assets replacement
□ Applicable√ Not applicable
4 Annuity plan
□ Applicable√ Not applicable
5 Discontinued operations
□ Applicable√ Not applicable
6 Segment information
(1). Basis for determining reporting segments and accounting policies
√ Applicable□ Not applicable
The Company has no diversified operations or trans-regional operations, so nosegmental reporting is made. The breakdown of principal business income and principalbusiness cost of the Company, by brand, was as follows:
2020
Brand | Income from main operations | Cost of principal business | Gross profit |
Proya | 2,985,608,479.56 | 986,945,516.11 | 1,998,662,963.45 |
Other brands | 762,316,121.04 | 376,541,258.15 | 385,774,862.89 |
Subtotal | 3,747,924,600.60 | 1,363,486,774.26 | 2,384,437,826.34 |
2019
Brand | Income from main operations | Cost of principal business | Gross profit |
Proya | 2,655,623,315.78 | 862,688,977.18 | 1,792,934,338.60 |
Other brands | 460,830,325.85 | 257,619,910.63 | 203,210,415.22 |
Subtotal | 3,116,453,641.63 | 1,120,308,887.81 | 1,996,144,753.82 |
(2). Financial information of reporting segments
□ Applicable√ Not applicable
(3). If the Company does not have a reporting segment, or if it cannot disclose the total
assets and total liabilities of each reporting segment, the reasons shall be
explained
□ Applicable√ Not applicable
(4). Other particulars
□ Applicable√ Not applicable
7 Other important transactions and events that have an impact on investors’ decisions
□ Applicable√ Not applicable
8 Others
□ Applicable√ Not applicable
XVII Notes to the main items of the parent company’s financial statements1 Accounts receivable
(1). Disclosure by account age
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Account age | Carrying balance at the end of the period |
Within 1 year |
Where: Subitems within 1 year | |
Sub-total within 1 year | 539,730,234.31 |
1-2 years | 67,108,742.67 |
2-3 years | 10,635,137.38 |
Above 3 years | |
3-4 years | |
4-5 years | |
Above 5 years | |
Total | 617,474,114.36 |
(2). Disclosure by accruing method for bad debt provisions
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Category | Closing balance | Opening balance | ||||||||
Carrying balance | Bad debt provisions | Carrying value | Carrying balance | Bad debt provisions | Carrying value | |||||
Amount | Percentage (%) | Amount | Accruing percentage (%) | Amount | Percentage (%) | Amount | Accruing percentage (%) | |||
Bad debt provisions accrued separately | ||||||||||
Where: | ||||||||||
Bad debt provisions accrued according to the combination | 617,474,114.36 | 100.00 | 52,436,703.21 | 8.49 | 565,037,411.15 | 655,251,782.77 | 100.00 | 41,170,327.87 | 6.28 | 614,081,454.90 |
Where: | ||||||||||
Total | 617,474,114.36 | / | 52,436,703.21 | / | 565,037,411.15 | 655,251,782.77 | / | 41,170,327.87 | / | 614,081,454.90 |
Bad debt provisions accrued separately:
□ Applicable√ Not applicable
Bad debt provisions accrued according to the combination:
√ Applicable□ Not applicable
Items of portfolio provision: Account age combination
Unit: Yuan Currency: RMB
Name | Closing balance | ||
Accounts receivable | Bad debt provisions | Accruing percentage (%) | |
Account age combination | 617,474,114.36 | 52,436,703.21 | 8.49 |
Total | 617,474,114.36 | 52,436,703.21 | 8.49 |
Recognition standards and descriptions on bad debts in portfolio provision:
□ Applicable√ Not applicable
If bad debt provisions are accrued according to the general model of expected credit losses,please refer to the disclosure on other receivables:
□ Applicable√ Not applicable
(3). Particulars on bad debt provisions
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Category | Opening balance | Change of the current period | Closing balance | |||
Accrued | Recovered or reversed | Resold or written-off | Other changes | |||
Bad debt provisions accrued according to the combination | 41,170,327.87 | 11,477,535.56 | 211,160.22 | 52,436,703.21 | ||
Total | 41,170,327.87 | 11,477,535.56 | 211,160.22 | 52,436,703.21 |
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable√ Not applicable
(4). Particulars on accounts receivable actually written-off in the current period
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Written-off amount |
Accounts receivable actually written-off | 211,160.22 |
Writing-off of significant accounts receivable
□ Applicable√ Not applicable
(5). Particulars on top 5 accounts receivable in terms of the balance at the end of theperiod based on debtors
√ Applicable□ Not applicable
Company name | Carrying balance | Proportion (%) of the balance of accounts receivable | Bad debt provisions |
Zhejiang Meiligu Electronic Commerce Co., Ltd. | 194,757,806.35 | 31.54 | 9,737,890.32 |
Hangzhou Proya Trade Co., Ltd. | 164,236,582.96 | 26.60 | 8,211,829.15 |
Huzhou UZERO Trading Co., Ltd. | 105,627,945.58 | 17.11 | 18,370,228.37 |
Huzhou Chuangdai E-commerce Co., Ltd. | 57,196,907.32 | 9.26 | 2,859,845.37 |
Hangzhou Proya Commercial Management Co., Ltd. | 44,351,306.05 | 7.18 | 4,435,130.61 |
Subtotal | 566,170,548.26 | 91.69 | 43,614,923.82 |
(6). Accounts receivable derecognized due to the transfer of financial assets
□ Applicable√ Not applicable
(7). Amount of assets and liabilities formed due to the transfer and continuous
involvement of accounts receivable
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
2 Other receivablesPresented by item
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Interest receivable | ||
Dividend receivable | ||
Other receivables | 236,585,409.48 | 31,800,093.90 |
Total | 236,585,409.48 | 31,800,093.90 |
Other particulars:
□ Applicable√ Not applicable
Interest receivable
(1). Classification of interest receivable
□ Applicable√ Not applicable
(2). Important overdue interest
□ Applicable√ Not applicable
(3). Particulars on accruing of bad debt provisions
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
Dividend receivable
(1). Dividend receivable
□ Applicable√ Not applicable
(2). Important dividend receivable with the account age over one year
□ Applicable√ Not applicable
(3). Particulars on accruing of bad debt provisions
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
Other receivables
(1). Disclosure by account age
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Account age | Carrying balance at the end of the period |
Within 1 year | |
Where: Subitems within 1 year | |
Sub-total within 1 year | 225,714,864.15 |
1-2 years | 23,059,702.19 |
2-3 years | 35,780,461.67 |
Above 3 years | 123,488,831.25 |
3-4 years | |
4-5 years | |
Above 5 years | |
Total | 408,043,859.26 |
(2). Particulars on classification by amount nature
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Amount nature | Carrying balance at the end | Carrying balance at the |
of the period | beginning of the period | |
Borrowing/lending cost | 402,005,709.08 | 179,090,840.39 |
Deposit and margin | 5,100,314.72 | 4,838,414.72 |
Petty cash | 932,910.70 | 300,000.00 |
Others | 4,924.76 | 421,215.83 |
Total | 408,043,859.26 | 184,650,470.94 |
(3). Particulars on accruing of bad debt provisions
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Bad debt provisions | Phase 1 | Phase 2 | Phase 3 | Total |
Expected credit losses in the next 12 months | Expected credit loss for the entire duration (no credit impairment occurred) | Expected credit loss for the entire duration (credit impairment occurred) | ||
Balance as at 1 January 2020 | 579,944.52 | 14,700.00 | 152,255,732.52 | 152,850,377.04 |
Balance as at 1 January 2020 in the current period | ||||
-- Transferred into Phase 2 | -465,370.74 | 465,370.74 | ||
-- Transferred into Phase 3 | -14,700.00 | 14,700.00 | ||
-- Reversed into Phase 2 | ||||
-- Reversed into Phase 1 | ||||
Accrued in the current period | 7,890,983.06 | 2,326,853.68 | 8,390,236.00 | 18,608,072.74 |
Reserved in the current period | ||||
Resold in the current period | ||||
Written-off in the current period | ||||
Other changes | ||||
Balance as at 31 December 2020 | 8,005,556.84 | 2,792,224.42 | 160,660,668.52 | 171,458,449.78 |
Particulars on the significant changes in the carrying balance of other receivables in which changes inloss provisions occurred in the current period:
□ Applicable√ Not applicable
The basis for adopting the amount of bad debt provisions accrued for the current periodand the assessment on whether the credit risk of financial instruments increasedsignificantly:
□ Applicable√ Not applicable
(4). Particulars on bad debt provisions
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Category | Opening balance | Change of the current period | Closing balance | |||
Accrued | Recovered or reversed | Resold or written-off | Other changes | |||
Bad debt provisions accrued separately | 152,209,232.52 | 8,363,936.00 | 160,573,168.52 | |||
Bad debt provisions accrued according to the combination | 641,144.52 | 10,244,136.74 | 10,885,281.26 | |||
Total | 152,850,377.04 | 18,608,072.74 | 171,458,449.78 |
Significant bad debt provision amounts reversed or recovered in the current period:
□ Applicable√ Not applicable
(5). Particulars on other receivables actually written-off in the current period
□ Applicable√ Not applicable
(6). Particulars on top 5 other receivables in terms of the balance at the end of the
period based on debtors
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Company name | Amount nature | Closing balance | Account age | Percentage (%) in the total balance at the end of the period of other receivables | Balance of bad debt provisions at the end of the period |
Hapsode (Hangzhou) Cosmetics Co., Ltd. | Borrowing/lending cost | 237,448,782.70 | [Note 1] | 58.19 | 159,856,503.49 |
Hong Kong Xinghuo Industry Limited | Borrowing/lending cost | 143,782,379.19 | Within 1 year | 35.24 | 7,189,118.96 |
Ningbo TIMAGE Cosmetics Co., Ltd. | Borrowing/lending cost | 15,849,466.68 | [Note 2] | 3.88 | 1,942,173.33 |
Hangzhou Property Maintenance Fund Management Center | Deposit and margin | 4,708,614.72 | 1-2 years | 1.15 | 1,412,584.42 |
Ningbo Keshi Trading Limited | Borrowing/lending cost | 3,031,666.68 | Within 1 year | 0.74 | 151,583.33 |
Total | / | 404,820,909.97 | / | 99.20 | 170,551,963.53 |
[Note 1] Within 1 year: RMB 65,559,502.30; 1-2 years: RMB 12,731,987.48; 2-3 years:
RMB 35,731,461.67; more than 3 years: RMB 123,425,831.25.[Note 2] Within 1 year: RMB 11,250,666.68; 1-2 years: RMB 4,598,800.00.
(7). Receivables involving government grants
□ Applicable√ Not applicable
(8). Other receivables derecognized due to the transfer of financial assets
□ Applicable√ Not applicable
(9). Amount of assets and liabilities formed due to the transfer and continuous
involvement of other receivables
□ Applicable√ Not applicable
Other particulars:
□ Applicable√ Not applicable
3 Long-term equity investment
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Carrying balance | Impairment provisions | Carrying value | Carrying balance | Impairment provisions | Carrying value | |
Investment to subsidiaries | 337,957,327.24 | 42,500,000.00 | 295,457,327.24 | 193,493,281.61 | 42,500,000.00 | 150,993,281.61 |
Investments to associates and joint ventures | 51,915,628.82 | 51,915,628.82 | 12,965,896.60 | 4,076,710.83 | 8,889,185.77 | |
Total | 389,872,956.06 | 42,500,000.00 | 347,372,956.06 | 206,459,178.21 | 46,576,710.83 | 159,882,467.38 |
(1). Investment to subsidiaries
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Invested company | Opening balance | Increase of the current period | Decrease of the current period | Closing balance | Impairment provisions accrued in the current period | Balance of impairment provisions at the end of the period |
Hangzhou Proya Trade Co., Ltd. | 30,000,000.00 | 875,097.64 | 30,875,097.64 | |||
Hanna Cosmetics Co., Ltd. | 2,094,048.00 | 2,094,048.00 | ||||
Zhejiang Meiligu Electronic Commerce Co., Ltd. | 10,000,000.00 | 6,383,777.51 | 16,383,777.51 | |||
Yueqing Laiya Trading Co., Ltd. | 1,000,000.00 | 1,000,000.00 | ||||
Hapsode (Hangzhou) Cosmetics Co., Ltd. | 42,500,000.00 | 42,500,000.00 | 42,500,000.00 | |||
Mijing Siyu (Hangzhou) Cosmetics | 18,000,000.00 | 18,000,000.00 |
Co., Ltd. | ||||||
Huzhou UZERO Trading Co., Ltd. | 4,750,000.00 | 818,795.63 | 5,568,795.63 | |||
Huzhou Niuke Technology Co., Ltd. | 3,500,000.00 | 3,500,000.00 | ||||
Hangzhou Proya Commercial Management Co., Ltd. | 5,000,000.00 | 5,000,000.00 | ||||
Huzhou Younimi Cosmetics Co., Ltd. | 20,308,163.00 | 20,308,163.00 | ||||
Shanghai Zhongwen Electronic Commerce Co., Limited | 5,300,000.00 | 100,000.00 | 5,400,000.00 | |||
Korea Younimi Cosmetics Co., Ltd. | 5,046,455.61 | 5,046,455.61 | ||||
HONGKONG KESHI TRADING LIMITED | 24,736,491.00 | 24,736,491.00 | ||||
Hong Kong Xinghuo Industry Limited | 10,185,924.00 | 10,185,924.00 | ||||
Ningbo TIMAGE Cosmetics Co., Ltd. | 552,200.00 | 15,350,000.00 | 15,902,200.00 | |||
Ningbo Keshi Trading Limited | 520,000.00 | 520,000.00 | ||||
Zhejiang Biyouti Cosmetics Co., Ltd. | 10,000,000.00 | 10,000,000.00 | ||||
Ningbo Proya | 4,186,374.85 | 4,186,374.85 |
Enterprise Consulting Management Co., Ltd. | ||||||
Hangzhou Yizhuo Culture Media Co., Ltd. | 1,000,000.00 | 1,000,000.00 | ||||
Hangzhou Oumisi Trading Co., Ltd. | 2,000,000.00 | 2,000,000.00 | ||||
Guangzhou Qianxi Network Technology Co., Ltd. | 1,000,000.00 | 1,000,000.00 | ||||
Zhejiang Qingya Culture Art Communication Co., Ltd. | 550,000.00 | 550,000.00 | ||||
Hangzhou Qingyan Cosmetics Co., Ltd. | 510,000.00 | 510,000.00 | ||||
Huzhou Poyun Electronic Commerce Co., Ltd. | 1,200,000.00 | 1,200,000.00 | ||||
Shanghai Healthlong Biochemical Technology Co., Ltd. | 110,500,000.00 | 110,500,000.00 | ||||
Hangzhou Weiluoke Cosmetics Co., Ltd. | 500,000.00 | 500,000.00 | ||||
BOYA (Hong Kong) Investment Management Co., Limited | ||||||
Total | 193,493,281 | 144,974,045 | 510,000. | 337,957,327 | 42,500,000 |
.61 | .63 | 00 | .24 | .00 |
(2). Investments to associates and joint ventures
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Investor | Opening balance | Change of the current period | Closing balance | Balance of impairment provisions at the end of the period | |||||||
Additional investment | Withdrawn investment | Investment gains and losses recognized under the equity method | Adjustment to other comprehensive income | Other equity changes | Declaration on distribution of cash dividends or profits | Accruing of impairment provisions | Others | ||||
I. Joint venture | |||||||||||
Huzhou Panrui Industrial Investment Partnership (Limited Partnership) | 3,314,489.57 | -7,859.00 | 3,306,630.57 | ||||||||
Sub-total | 3,314,489.57 | -7,859.00 | 3,306,630.57 | ||||||||
II. Associate | |||||||||||
Xiongke Culture Media (Hangzhou) Co., Ltd. | 2,999,955.82 | -14,444.47 | 2,985,511.35 |
Beijing Mitangpai Cosmetics Co., Ltd. | |||||||||||
Ningbo Segu Brand Management Co., Ltd. | 2,574,740.38 | 1,861,328.48 | -713,411.90 | ||||||||
Jiaxing Woyong Investment Partnership (Limited Partnership) | 46,000,000.00 | -376,513.10 | 45,623,486.90 | ||||||||
Sub-total | 5,574,696.20 | 46,000,000.00 | 1,861,328.48 | -1,104,369.47 | 48,608,998.25 | ||||||
Total | 8,889,185.77 | 46,000,000.00 | 1,861,328.48 | -1,112,228.47 | 51,915,628.82 |
Other particulars:
None
4 Operating revenues and operating costs
(1). Particulars on operating revenues and operating costs
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period | ||
Revenue | Costs | Revenue | Costs | |
Main operations | 1,877,388,044.31 | 906,212,295.56 | 1,733,852,516.29 | 859,925,094.37 |
Other operations | 73,581,174.62 | 12,405,049.40 | 36,943,357.45 | 10,485,667.66 |
Total | 1,950,969,218.93 | 918,617,344.96 | 1,770,795,873.74 | 870,410,762.03 |
(2). Particulars on revenues from contracts
□ Applicable√ Not applicable
(3). Description on performance obligations
□ Applicable√ Not applicable
(4). Description on apportionment to remaining performance obligations
□ Applicable√ Not applicable
Other particulars:
None
5 Investment income
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount accounted for in the current period | Amount accounted for in the previous period |
Long-term equity investment income calculated by cost method | ||
Long-term equity investment income accounted for under the equity method | -1,112,228.47 | -2,869,155.87 |
Investment income from disposal of long-term equity investment | -114,873.70 | |
Investment income from held-for-trading financial assets during the holding period | ||
Dividend income from other equity instrument investments during the holding period | ||
Interest income from debt investment during the holding period | ||
Interest income from other debt investments during the holding period | ||
Investment income from disposal of held-for-trading financial assets | ||
Investment income from disposal of other equity instrument investments | ||
Investment income from disposal of debt investment | ||
Investment income from disposal of other debt investments | ||
Income from wealth management products | 2,266,301.37 | 4,653,362.83 |
Total | 1,039,199.20 | 1,784,206.96 |
Other particulars:
None
6 Others
□ Applicable√ Not applicable
XVIII Supplementary InformationI Statement of non-recurring profit and loss in the current period
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Item | Amount | the situation |
Gains or losses on disposal of non-current assets | 150,560.30 | |
Tax returns and exemption with approval exceeding one's authority or without formal approval document | ||
Government subsidies included in the profits and losses of the current period (except those closely related to the Company's business and of fixed amount or fixed quantity granted in accordance with national uniform standards) | 12,198,410.18 | |
Fund possession cost from non-financial business included in current profit or loss | ||
Gains arising from investment costs for acquisition of subsidiaries, associates and joint ventures less than the fair values of attributable identifiable net assets of the invested entity at the time of acquisition | ||
Profit and loss from exchange of non-currency assets | ||
Gains or losses on entrusted investment or asset management | ||
Provision for asset impairment due to force majeure factors, such as natural disaster | ||
Profit and loss from restructuring of debts | ||
Enterprise restructuring charge, such as expenditure on staffing, integration cost | ||
Profit and loss of the part exceeding fair value generated from transaction |
with unreasonable transaction price | ||
Net current profit and loss of subsidiary generated from enterprise merger under common control from the beginning of the period to the date of merger | ||
Profit and loss generated from contingencies unrelated to normal business of company | ||
Investment income arising from changes in fair values held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities and derivative financial liabilities, and investment gains on the disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and other debt investment, except the Company normal operations related to effective hedging business | 2,266,301.37 | Investment income from disposal of financial asset designated as at fair value through profit or loss |
Reversal of provision for impairment of receivables and contract assets which are individually tested for impairment | ||
Profit and loss obtained from entrusted loans | ||
Profit and loss generated from fair value change of investment real estate whose subsequent measurement is conducted with fair value model | ||
Influences on current profit and loss of one-time adjustment to current profit or loss pursuant to the laws and regulations on tax and accounting | ||
Trustee fee income obtained from entrusted operation | ||
Other net non-operating income and expenses, other than the above items | -6,810,805.57 | |
Other profit and loss items conforming to the definition of non-recurring gains and losses | ||
Effect of income tax | -1,042,102.64 | |
Effect of minority equity | -688,969.45 | |
Total | 6,073,394.19 |
For non-recurring profit and loss items defined by the Company according to theExplanatory Announcement of Information Disclosure by Companies Offering Securities to
the Public No. 1 - Non-recurring Gains and Losses, and non-recurring profit and loss itemslisted in the Explanatory Announcement of Information Disclosure by Companies OfferingSecurities to the Public No. 1 - Non-recurring Gains and Losses defined as recurring profitand loss items,the reasons shall be explained.
□ Applicable√ Not applicable
II Return on net assets and income per share
√ Applicable□ Not applicable
Profits during the Reporting Period | Weighted average ROE (%) | Earnings per share | |
Basic earnings per share | Diluted earnings per share | ||
Net profit attributable to ordinary shareholders of the company | 21.82 | 2.37 | 2.37 |
Net profit attributable to ordinary shareholders of the company after deducting non-recurring gains and losses | 21.54 | 2.34 | 2.34 |
III Accounting data difference between PRC GAAP and Overseas Accounting Standards
□ Applicable√ Not applicable
IV Others
□ Applicable√ Not applicable
Section XII Directory of Documents for Future Reference
References | Financial statements signed and sealed by the Legal Representative, CFO of the Company, and the Head of the public accountant |
References | Original of the audit report with the seal of the accounting firm and the signature and seal of the certified public accountant |
References | Originals of all company documents and announcements publicly disclosed on the designated newspapers by CSRC in the Reporting Period |
Chairman: Hou JunchengDate of submission approved by the Board of Directors:21 April 2021
Revision information
□ Applicable√ Not applicable