Stock Code: 002242 Stock Abbreviation: Joyoung
Joyoung Co., Ltd.
Abstract of the Interim Report of the First Quarter 2020
Section I Important StatementsThe Board of Directors, the Supervisory Committee as well as all thedirectors, supervisors and senior management staff of Joyoung Co., Ltd.(hereinafter referred to as the “Company”) have guaranteed that this reportcontains no false record, misleading statement or material omission. And theyshall be jointly and severally liable for the factuality, accuracy and completenessof the information given in this Report.All directors attended the board meeting that reviewed this Report.Xuning WANG, CEO of the company; Jiantiao QIU, CFO of the company,and Wen GUO, Chief Accountant of Accounting Institution, declared that thequarterly financial statements should be true, accurate and complete.In the event of any discrepancy between the abstract and the full documentof annual report, the complete version in Chinese shall prevail.
Section II Company Profile
1. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment to or restatement of accounting data
□ Yes √ No
| From 1 January 2020 to 31 March 2020 | From 1 January 2019 to 31 March 2019 | Flux | |
| Operating revenues (RMB Yuan) | 1,702,037,045.29 | 1,798,604,618.75 | -5.37% |
| Net profits attributable to shareholders of the Company (RMB Yuan) | 146,873,325.81 | 163,025,602.23 | -9.91% |
| Net profits attributable to shareholders of the Company before non-recurring gains and losses (RMB Yuan) | 143,533,461.10 | 153,674,909.70 | -6.60% |
| Net cash flow from operating activities (RMB Yuan) | 143,106,492.72 | 177,432,841.43 | -19.35% |
| Basic earnings per share (RMB Yuan /share) | 0.19 | 0.21 | -9.52% |
| Diluted earnings per share (RMB Yuan /share) | 0.19 | 0.21 | -9.52% |
| Weighted average return on net assets | 3.84% | 4.12% | Decreased by 0.28 percentage point |
| 31 March 2020 | 31 December 2019 | Flux | |
| Total assets (RMB Yuan) | 6,857,339,076.16 | 7,467,802,731.42 | -8.17% |
| Net assets attributable to shareholders of the Company (RMB Yuan) | 3,909,181,421.99 | 3,753,065,661.20 | 4.16% |
Non-recurring gain and loss items and amounts thereof
Unit: RMB Yuan
| Item | From 1 January 2020 to 31 March 2020 | Note |
| Profit or loss from disposal of non-current assets (including the write off of the provision for impairment of assets) | -12,290.89 | |
| Government grants included in the current profit or loss (that is closely related to the operations of the Company, except for those of fixed quotas or amounts according to the nationally unified standards) | 3,304,204.66 | |
| Gains or losses from changes in fair value arising from the holding of trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities and investment income from the disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other debt investments, excluding the effective hedging business related to the Company’s normal business operations | 2,932,020.62 | |
| Other non-operating income or expenses except the above items | -1,778,505.79 |
| Less: Impact of income taxes | 1,070,476.80 | |
| Impact of minority interests (after tax) | 35,087.09 | |
| Total | 3,339,864.71 | -- |
For non-recurring profit or loss items defined by the Company according to the definitions under the InterpretativeAnnouncement on Information Disclosure of Companies Offering Securities to the Public No. 1 — Non-recurring Profit or Lossand the non-recurring profit or loss items listed in the Interpretative Announcement on Information Disclosure of CompaniesOffering Securities to the Public No. 1 — Non-recurring Profit or Loss that have been defined as recurring profit or loss itemsby the Company, please provide the reasons
□ Applicable √ Not applicable
2. Total number of shareholders and shareholdings of the top ten shareholders at theperiod-end
(1) Total number of common shareholders and shareholdings of the top ten common shareholders at theperiod-end
Unit: share
| Total number of common shareholders at the end of the Reporting Period | 22,445 | Total number of preferred shareholders with resumed voting rights at the end of the Reporting Period (if any) | 0 | ||||
| Top 10 common shareholders | |||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Number of restricted shares held | Pledged or frozen shares | ||
| Status | Number | ||||||
| Shanghai Lihong Enterprise Management Limited | Domestic non-state-owned corporation | 50.11% | 384,523,746 | Pledged | 30,972,626 | ||
| BILTING DEVELOPMENTS LIMITED | Foreign corporation | 16.93% | 129,924,090 | ||||
| Hong Kong Securities Clearing Co., Ltd. | Foreign corporation | 6.38% | 48,956,761 | ||||
| Central Huijin Investment Ltd. | State-owned corporation | 4.99% | 38,310,500 | ||||
| National Social Security Fund Portfolio No. 418 | Others | 0.40% | 3,057,400 | ||||
| Bank of China- E Fund Positive Growth Securities Investment Fund | Others | 0.39% | 2,999,811 | ||||
| Basic Pension Insurance Fund Portfolio No. 808 | Others | 0.36% | 2,750,098 | ||||
| Agricultural Bank of China Co., Ltd. - CSI | Others | 0.35% | 2,709,682 | ||||
| 500 Exchange Trade Fund | |||||||||
| PICC Life Insurance Co., Ltd. -Dividend-Personal Insurance with Dividend Participation | Others | 0.31% | 2,361,082 | ||||||
| GF Fund Management Co., Ltd. - Social Insurance Fund Portfolio No. 420 | Others | 0.30% | 2,289,900 | ||||||
| Top 10 non-restricted common shareholders | |||||||||
| Name of shareholder | Number of non-restricted shares held | Type of shares | |||||||
| Type of shares | Number | ||||||||
| Shanghai Lihong Enterprise Management Limited | 384,523,746 | RMB common stock | 384,523,746 | ||||||
| BILTING DEVELOPMENTS LIMITED | 129,924,090 | RMB common stock | 129,924,090 | ||||||
| Hong Kong Securities Clearing Co., Ltd. | 48,956,761 | RMB common stock | 48,956,761 | ||||||
| Central Huijin Investment Ltd. | 38,310,500 | RMB common stock | 38,310,500 | ||||||
| National Social Security Fund Portfolio No. 418 | 3,057,400 | RMB common stock | 3,057,400 | ||||||
| Bank of China- E Fund Positive Growth Securities Investment Fund | 2,999,811 | RMB common stock | 2,999,811 | ||||||
| Basic Pension Insurance Fund Portfolio No. 808 | 2,750,098 | RMB common stock | 2,750,098 | ||||||
| Agricultural Bank of China Co., Ltd. - CSI 500 Exchange Trade Fund | 2,709,682 | RMB common stock | 2,709,682 | ||||||
| PICC Life Insurance Co., Ltd. -Dividend-Personal Insurance with Dividend Participation | 2,361,082 | RMB common stock | 2,361,082 | ||||||
| GF Fund Management Co., Ltd. - Social Insurance Fund Portfolio No. 420 | 2,289,900 | RMB common stock | 2,289,900 | ||||||
| Related or acting-in-concert parties among shareholders above | Shanghai Lihong Enterprise Management Co., Ltd. and BILTING DEVELOPMENTS LIMITED, both controlled by Mr. Xuning WANG, are defined as acting-in-concert parties by the Administrative Measures for the Takeover of Listed Companies. Other than the aforementioned related and acting-in-concert parties, the Company is uncertain about whether there are related or acting-in-concert parties among shareholders above. | ||||||||
| Explanation on the top 10 common shareholders participating in securities margin trading (if any) | N/A | ||||||||
The company's top 10 common shareholders and the top 10 common shareholders with unrestricted in terms of sale hadn’tengage in the agreed repurchase transactions during the reporting period.
□ Yes √ No
2.2 Total Number of Preferred Shareholders and TOP 10 Preferred Shareholders and Their Shareholdings
□ Applicable √ Not applicable
3. Significant Events
3.1 Major Changes of Main Items in Financial Statements and Financial Indicators Withinthe Report Period, as well as the Reasons for the Changes
| Item | 31 March 2020 | 1 January 2020 | Flux | Notes |
| Trading financial assets | 498,877,347.95 | 178,413,101.37 | 179.62% | Mainly due to the increase in the wealth management products in the reporting period |
| Accounts receivable | 360,440,906.58 | 205,666,452.78 | 75.26% | Mainly due to stocking-up of products by distributors |
| Receivables financing | 514,231,753.57 | 1,074,684,958.98 | -52.15% | Mainly due to the decrease in notes to be endorsed or discounted in the reporting period |
| Prepayments | 96,467,437.23 | 16,764,368.44 | 475.43% | Mainly due to the increase in prepayments to suppliers to secure the price of materials in the reporting period |
| Other receivables | 39,456,067.83 | 23,973,667.38 | 64.58% | Mainly due to that the channel freight paid upfront for the distributors has not been recovered in the reporting period |
| Inventory | 689,134,870.65 | 1,086,324,196.47 | -36.56% | Mainly due to the sale of the previous period’s stock in the reporting period |
| Other current assets | 54,879,031.89 | 96,297,048.36 | -43.01% | Mainly due to less input VAT to be deducted in the reporting period |
| Construction in progress | 15,082,262.02 | 25,684,062.26 | -41.28% | Mainly due to the transfer of some construction in progress to fixed assets in the reporting period |
| Deferred income tax assets | 63,637,156.00 | 95,701,559.67 | -33.50% | Mainly due to the reduction of unpaid expenses payable in the reporting period |
| Other non-current assets | 65,000,000.00 | 32,020,000.00 | 103.00% | Mainly due to the payment for the purchase of property for the headquarters infrastructure construction in the reporting period |
| Notes payable | 1,545,985,455.06 | 908,287,475.26 | 70.21% | Mainly due to the increase of notes payable issued through the supply chain financing in the reporting period |
| Accounts payable | 862,578,504.49 | 1,873,046,211.93 | -53.95% | Mainly due to the payments to suppliers in the reporting period |
| Receipts in advance | 449,858,499.79 | -100.00% | Mainly due to the transfer of receipts in advance into the contractual liabilities in the reporting period | |
| Contractual liabilities | 257,610,015.40 | 100.00% | ||
| Employee benefits payable | 19,029,413.90 | 192,144,065.05 | -90.10% | Mainly due to paying the yearly bonus recognized at the end of the previous period in the reporting period |
| Item | From 1 January | From 1 January | Flux | Notes |
| 2020 to 31 March 2020 | 2019 to 31 March 2019 | |||
| Financial expenses | -6,055,435.63 | 6,556,838.69 | -192.35% | Mainly due to the increase in deposit interests and exchange rate changes in the reporting period |
| Other income | 3,304,204.66 | 166,400.00 | 1885.70% | Mainly due to the increase in government grants in the reporting period |
| Investment income | 2,968,245.88 | 15,917,137.06 | -81.35% | Mainly due to losses of associates in the reporting period |
| Other cash received related to operating activities | 30,216,691.30 | 10,809,404.87 | 179.54% | Mainly due to the receipt of bill security in the reporting period |
| Various taxes paid | 78,640,320.48 | 123,099,437.19 | -36.12% | Mainly due to the delayed payment of some taxes and fees in the reporting period |
| Cash received from disposal of investments | 15,243,783.94 | -100.00% | Mainly due to the recovery of the principal of funds in the previous period | |
| Cash received from returns on investments | 12,510,341.04 | 5,115,163.83 | 144.57% | Mainly due to dividends from the Company’s funds in the reporting period |
| Other cash received related to investment activities | 518,000,000.00 | 109,000,000.00 | 375.23% | Mainly due to the redemption of wealth management products and the maturity of the structured deposit funds in the reporting period |
| Cash paid for investment activities | 5,202,789.49 | 100.00% | Mainly due to the increase in external investment in the reporting period | |
| Other cash paid related to investment activities | 929,418,000.00 | 290,000,000.00 | 220.49% | Mainly due to the purchase of wealth management products and the increase in structured deposits in the reporting period |
| Net cash flow from investing activities | -405,999,508.70 | -164,588,405.70 | -146.68% | Mainly due to the purchase of wealth management products and the increase in structured deposits in the reporting period |
| Other cash received related to financing activities | 275,000,000.00 | 100.00% | Mainly due to the receipt of financing bank acceptance bills in the reporting period | |
| Other cash paid related to financing activities | 210,000,000.00 | 100.00% | Mainly due to the repayment of financing bank acceptance bills in the reporting period | |
| Net cash flow from financing activities | 65,000,000.00 | 100.00% | Mainly due to the receipt of financing bank acceptance bills in the reporting period | |
| V. Net increase in cash and cash equivalents | -199,268,081.85 | 13,434,991.35 | -1583.20% | Mainly due to the purchase of wealth management products and the increase in structured deposits in the reporting period |
3.2 Analysis of the Progress of Important Matters and Their Impact and Solutions
□ Applicable √ Not applicable
The implementation of share-buyback
□ Applicable √ Not applicable
The implementation of reducing buy-back shares through centralized competitive bidding
□ Applicable √ Not applicable
3.3 Commitments Made by the Actual Controller, Shareholders, Related Parties, Purchasersand Other
Relevant Parties That Have not been Fulfilled the Correspondent Promise Within the Reporting Period
□ Applicable √ Not applicable
3.4 Securities investments
□ Applicable √ Not applicable
3.5 Trusted Wealth Management
Unit: 10,000 RMB Yuan
| Type | Source of fund for trust investment | Amount of recorded trust investment | Premature balance | Overdue balance |
| Bank financial products | Self-owned capital | 57,400 | 49,888 | 0 |
| Total | 57,400 | 49,888 | 0 | |
The specific situation of high-risk, low security, poor liquidity or non-guarantee trusted wealth management of significantamount
□ Applicable √ Not applicable
Trust investment is expected to be unable to recover the principal or other circumstances that may result in impairment
□ Applicable √ Not applicable
3.6 Derivative investment
□ Applicable √ Not applicable
3.7 Illegal external guarantee
□ Applicable √ Not applicable
3.8 The Non-operating Funds Occupation of the Controlling Shareholders and Its RelatedParties
□ Applicable √ Not applicable
3.9 Registration Forms for Research, Communication and Interviews During the ReportingPeriod.
| Date | Reception method | Reception object type | Basic information index |
| 08 January 2020 | On site | Institution | Please refer to the Company’s activity record for investor relationships on 08 January 2020 on Cninfo website. |