Ticker: 002242 Stock Abbreviation: Joyoung ReportNo.2020-047
Joyoung Co., Ltd.
Abstract of Interim Report of the Third Quarter 2020
Section I Important StatementsThe Board of Directors, the Supervisory Committee as well as all the directors,supervisors and senior management staff of Joyoung Co., Ltd. (hereinafter referred toas the “Company”) have guaranteed that this Report contains no false record,misleading statement or material omission and shall be jointly and severally liable forthe factuality, accuracy and completeness of the information given in this Report.
In the event of any discrepancy between the abstract and the full document of theReport, the complete version in Chinese shall prevail.
All directors attended the board meeting that reviewed this Report.
Xuning WANG, CEO of the company; Jiantiao QIU, CFO of the company, and WenGUO, Chief Accountant of Accounting Institution, declared that the quarterly financialstatements should be true, accurate and complete.
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
| 30 September 2020 | 31 December 2019 | Flux | ||||
| Total assets (RMB Yuan) | 7,622,734,601.55 | 7,467,802,731.42 | 2.07% | |||
| Net assets attributable to shareholders of the Company (RMB Yuan) | 3,985,286,755.81 | 3,753,065,661.20 | 6.19% | |||
| From 1 July 2020 to 30 September 2020 | YoY change | From 1 January 2020 to 30 September 2020 | YoY change | |||
| Operating revenue (RMB Yuan) | 2,524,414,362.45 | 22.07% | 7,082,944,404.29 | 13.24% | ||
| Net Profit attributable to shareholders of the Company (RMB Yuan) | 226,221,124.84 | 6.80% | 643,988,210.04 | 4.23% | ||
| Net profit attributable to shareholders of the Company before non-recurring gains and losses (RMB Yuan) | 209,038,297.29 | 1.92% | 602,089,808.93 | 3.35% | ||
| Net cash flows from operating activities (RMB Yuan) | 309,734,992.75 | -58.44% | 836,525,901.98 | -9.27% | ||
| Basic earnings per share (RMB Yuan /share) | 0.30 | 7.14% | 0.84 | 3.70% | ||
| Diluted earnings per share (RMB Yuan /share) | 0.30 | 7.14% | 0.84 | 3.70% | ||
| Weighted average return on net assets | 5.85% | Increased by 0.36 percentage point | 16.54% | Increased by 0.53 percentage point | ||
Non-recurring gain and loss items and amounts thereof
Unit: RMB Yuan
| Item | From 1 January 2020 to 30 September 2020 | Note |
| Profit or loss from disposal of non-current assets (including the write off of the provision for impairment of assets) | 1,834,090.36 | |
| 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) | 25,254,534.46 | |
| 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 | 25,877,872.95 |
| Company’s normal business operations | ||
| Other non-operating income or expenses except the above items | 1,683,410.18 | |
| Less: Impact of income taxes | 12,343,300.75 | |
| Impact of minority interests (after tax) | 408,206.09 | |
| Total | 41,898,401.11 | -- |
For non-recurring profit or loss items defined by the Company according to the definitions under the Interpretative Announcement onInformation Disclosure of Companies Offering Securities to the Public No. 1 — Non-recurring Profit or Loss and the non-recurring profitor loss items listed in the Interpretative Announcement on Information Disclosure of Companies Offering Securities to the Public No. 1 —Non-recurring Profit or Loss that have been defined as recurring profit or loss items by the Company, please provide the reasons
□ Applicable √ Not applicable
2. Total number of shareholders and shareholdings of the top ten shareholders at the period-end
2.1 Total number of common shareholders and shareholdings of the top ten common shareholders at the period-end
Unit: share
| Total number of common shareholders at the end of the Reporting Period | 19,960 | 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 | 50.12% | 384,523,746 | Pledged | 307,618,897 | |
| BILTING DEVELOPMENTS LIMITED | Foreign corporation | 16.94% | 129,924,090 | |||
| Hong Kong Securities Clearing Co., Ltd. | Foreign corporation | 6.91% | 53,006,805 | |||
| Central Huijin Investment Ltd. | State-owned corporation | 4.99% | 38,310,500 | |||
| Agricultural Bank of China Co., Ltd. - E Fund Consumer Industry Securities Investment Fund | Others | 1.23% | 9,400,411 | |||
| Yinhua Fund Management Co. Co., Ltd. - Social Insurance Fund Portfolio No. 1105 | Others | 0.63% | 4,819,153 | |||
| Bank of China Co., Ltd. - Dacheng Technology and Consumer Securities Investment Fund | Others | 0.59% | 4,543,933 | |||
| Basic Pension Insurance Fund Portfolio No. 1001 | Others | 0.40% | 3,098,421 | |||
| Industrial and Commercial Bank of China Co., Ltd. - Lion Actively Allocated Mixed Investment Fund | Others | 0.39% | 3,000,065 | ||||
| Basic Pension Insurance Fund Portfolio No. 808 | Others | 0.30% | 2,277,598 | ||||
| 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. | 53,006,805 | RMB common stock | 53,006,805 | ||||
| Central Huijin Investment Ltd. | 38,310,500 | RMB common stock | 38,310,500 | ||||
| Agricultural Bank of China Co., Ltd. - E Fund Consumer Industry Securities Investment Fund | 9,400,411 | RMB common stock | 9,400,411 | ||||
| Yinhua Fund Management Co. Co., Ltd. - Social Insurance Fund Portfolio No. 1105 | 4,819,153 | RMB common stock | 4,819,153 | ||||
| Bank of China Co., Ltd. - Dacheng Technology and Consumer Securities Investment Fund | 4,543,933 | RMB common stock | 4,543,933 | ||||
| Basic Pension Insurance Fund Portfolio No. 1001 | 3,098,421 | RMB common stock | 3,098,421 | ||||
| Industrial and Commercial Bank of China Co., Ltd. - Lion Actively Allocated Mixed Investment Fund | 3,000,065 | RMB common stock | 3,000,065 | ||||
| Basic Pension Insurance Fund Portfolio No. 808 | 2,277,598 | RMB common stock | 2,277,598 | ||||
| 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’t engage inthe 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
Section III Significant Events
1. Major Changes of Main Items in Financial Statements and Financial Indicators Within the ReportPeriod, as well as the Reasons for the Changes
| Item | 30 September 2020 | 31 December 2019 | Flux | Notes |
| Financial assets at fair value through profit or loss | 1,379,438,860.15 | 178,413,101.37 | 673.17% | Mainly due to the increase in the wealth management products in the reporting period |
| Accounts receivable | 552,472,377.02 | 205,666,452.78 | 168.63% | Mainly due to the increase of product sales in the reporting period |
| Receivables financing | 529,606,123.56 | 1,074,684,958.98 | -50.72% | Mainly due to the endorsement of notes receivable in the period-end |
| Advances to suppliers | 77,146,387.36 | 16,764,368.44 | 360.18% | Mainly due to advance payments to suppliers to secure the price of materials |
| Other receivables | 60,851,858.43 | 23,973,667.38 | 153.83% | Mainly due to the increase on receivable marketing expenses |
| Inventories | 568,893,157.98 | 1,086,324,196.47 | -47.63% | Mainly due to the sale of stock in the reporting period |
| Other current assets | 63,370,200.45 | 96,297,048.36 | -34.19% | Mainly due to less input VAT to be deducted |
| Long-term prepaid expenses | 9,345,497.73 | 19,708,893.64 | -52.58% | Mainly due to amortization |
| Other non-current assets | 65,000,000.00 | 32,020,000.00 | 103.00% | Mainly due to the increased payment for the purchase of property for the headquarters infrastructure construction in Jinan |
| Notes payable | 1,703,035,520.91 | 908,287,475.26 | 87.50% | Mainly due to the increase of notes payable issued in the reporting period |
| Accounts payable | 1,270,873,005.90 | 1,873,046,211.93 | -32.15% | Mainly due to the payment in the period-end |
| Employee benefits payable | 53,364,515.38 | 192,144,065.05 | -72.23% | Mainly due to wage payment |
| Taxes payable | 88,586,914.87 | 180,112,320.33 | -50.82% | Mainly due to tax payment in the reporting period |
| Other payables | 64,408,199.89 | 96,630,404.49 | -33.35% | Mainly due to the refund of deposit and bill security in the reporting period |
| Minority interests | 14,727,407.59 | -2,079,469.09 | 808.23% | Mainly due to the increase in capital of SharkNinja (China) in the reporting period |
| Advances from customers | 449,858,499.79 | -100.00% | Mainly due to the transfer of receipts in advance into the contractual liabilities in the reporting period | |
| Contract liability | 427,004,546.12 | 100.00% | ||
| Item | From 1 January 2020 to 30 September 2020 | From 1 January 2019 to 30 September 2019 | YoY change | Notes |
| Taxes and surcharges | 40,944,630.40 | 23,713,750.95 | 72.66% | Mainly due to the increase on surtaxes from the increase of product sales |
| Financial expenses | -13,260,474.11 | -6,979,286.19 | -90.00% | Mainly due to the increase on interest income in the reporting period |
| Investment income | 20,982,567.45 | 52,824,492.32 | -60.28% | Mainly due to dividends from less fund dividends in the reporting period |
| Net cash flows from investing activities | -1,312,582,276.80 | -551,880,575.39 | -137.84% | Mainly due to the purchase of wealth management products and the increase in structured deposits in the reporting period |
| Net cash flow from financing activities | 48,597,632.04 | -623,416,586.11 | 107.80% | Mainly due to the increased receipt of financing bank acceptance bills in the reporting period |
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. Commitments Made by the Actual Controller, Shareholders, Related Parties, Purchasers and OtherRelevant Parties That Have not been Fulfilled the Correspondent Promise Within the Reporting Period
□ Applicable √ Not applicable
4. Investment in Financial Assets
4.1 Securities investments
□ Applicable √ Not applicable
4.2 Derivative investment
□ Applicable √ Not applicable
5. Progress of Proceeds Investment Project
□ Applicable √ Not applicable
6. Projected operating results for 2020
Warnings and explanations of reasons why the cumulative net profit from the beginning of the year to the end of the next reportingperiod is forecasted to be a loss or to change significantly from the same period of the previous year.
□ Applicable √ Not applicable
7. Significant Contracts for Daily Operations
□ Applicable √ Not applicable
8. 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 | 111,250 | 78,409.25 | 0 |
| Trust financial products | Self-owned capital | 163,200 | 59,534.64 | 0 |
| Total | 274,450 | 137,943.89 | 0 | |
The specific situation of high-risk, low security, poor liquidity or non-guarantee trusted wealth management of significant amount
□ 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
9. Illegal external guarantees
□ Applicable √ Not applicable
10. The Non-operating Funds Occupation of the Controlling Shareholders and Its Related Parties
□ Applicable √ Not applicable
11. Registration Forms for Research, Communication and Interviews During the Reporting Period.
| Date | Site | Reception method | Reception object type | Reception object | Main discussion and information provided | Basic information index |
| 26 August 2020 | Company | On site | Institution | Institution | Please refer to the activity record for investor relationships on 26 August 2020 on Cninfo website. | |