StockCode：
002242StockAbbreviation：
JoyoungReportNo：
2018-054
JoyoungCo.,Ltd
QuarterlyReport
Ended30September2018
1.ImportantStatements
Theboardofdirectors,theboardofsupervisors,directors,supervisorsandseniorexecutivesofthecompanyshallbeliablefortheauthenticity,exactnessandcompletenessofthereport,promisethattherearenofalserecords,misleadingstatementsorseriousloophole,andpromisetobearseparateandjointlegalliabilities.
Alldirectorshaveattendedtheboardmeetingtoreviewthisquarterlyreport.XuningWANG,CEOofthecompany;JiantiaoQIU,CFOofthecompany,andMiaoMiao,ChiefAccountantofAccountingInstitution,declaredthatthequarterlyfinancialstatementsshouldbetrue,accurateandcomplete.
2.CompanyProfile
(1)KeyAccountingDataandFinancialIndicators
WhethertheCompanyperformedanyretroactiveadjustmentorrestatementofpreviousyears'accountingdata:
□Yes√No
| 30September2018 | 31December2017 | Flux(%) | ||||
| Totalassets(RMBYuan) | 5,192,103,739.21 | 5,350,746,142.18 | -2.96% | |||
| NetassetsattributabletoshareholdersoftheCompany(RMBYuan) | 3,586,743,713.50 | 3,574,555,421.97 | 0.34% | |||
| 2018Q3 | Flux(%) | Beginningoftheyeartotheendofthereportingperiod | Flux(%) | |||
| Operatingrevenues(RMBYuan) | 1,798,543,653.86 | 0.08% | 5,438,132,763.32 | 7.35% | ||
| NetprofitsattributabletoshareholdersoftheCompany(RMBYuan) | 199,167,030.05 | 12.28% | 569,207,402.17 | 5.68% | ||
| NetprofitsattributabletoshareholdersoftheCompanybeforenon-recurringgainsandlosses(RMBYuan) | 172,822,292.08 | 7.23% | 465,341,354.08 | -3.16% | ||
| Netcashflowfromoperatingactivities(RMBYuan) | 194,875,852.20 | 8.93% | 418,462,966.54 | 246.11% | ||
| Basicearningspershare(RMBYuan/share) | 0.26 | 13.04% | 0.74 | 5.71% | ||
| Dilutedearningspershare(RMBYuan/share) | 0.26 | 13.04% | 0.74 | 5.71% | ||
| Weightedaveragereturnonnetassets | 5.16% | 0.63% | 14.75% | 0.25% | ||
Non-recurringitemsandamountUnit：RMByuan
| Item | Beginningoftheyeartotheendofthereportingperiod | Notes |
| Gainorlossfordisposalofnon-currentassets(includingthewriteoffoftheprovisionforimpairmentofassets) | 12,719,572.17 | |
| GovernmentGrantincludedinthecurrentprofitandloss(closelyrelatedtothebusinessofthecompany,exclusiveofthequotaandquantitativegrantaccordingtothenationaluniformstandards） | 33,195,343.99 | |
| Thegainandlossonthechangesinfairvalueandthedisposalofthetransactionfinancialassetsandliabilities(exclusivetheeffectivehedgingbusinessrelatedwiththenormalbusinessofthecompany) | 9,986,735.05 | |
| OtherNon-Operatingincomeandexpensesbesidesthosementionedabove | 2,004,212.08 | |
| Theinvestmentprofitfordisposalofsubsidiary | 76,790,880.60 | - |
| minus：impactontheincometax | 30,774,397.26 | |
| impactontheMinority’sinterests(after-tax) | 56,298.54 | |
| Total | 103,866,048.09 | -- |
Therewasnosuchnon-recurringitemsthatshouldbereclassifiedtotherecurringitems,accordingtothe“No.1oftheExplanatorynoteoncorporatedisclosureofpubliclyofferings–non-recurringgainsandlosses”.
(2)ShareholdersandTheirShareholdingsattheEndofReportingPeriod
(a)Totalnumberofcommonshareholdersandthepreferenceshareholdersthatwithresumedvotingrights,aswellasthelistoftheTop10commonshareholders
unit：share
| TotalnumberofcommonshareholdersattheendofReportingPeriod | 35,352 | TotalnumberofpreferenceshareholderswithresumedvotingrightsattheendofReportingPeriod(ifany) | 0 | ||||||
| Top10commonshareholders | |||||||||
| Name | Nature | Shareholdingpercentage(%) | Commonshareholdingquantity | Restrictedcommonshareholdingquantity | Pledgedorfrozenshares | ||||
| Status | Number | ||||||||
| ShanghaiLihongNewTechnologyInvestmentCo.,Ltd. | Domesticnon-state-ownedcorporation | 49.87% | 382,751,496 | Pledged | 288,403,436 | ||||
| Frozen | 0 | ||||||||
| BILTINGDEVELOPMENTSLIMITED | Foreigncorporation | 16.93% | 129,924,090 | ||||||
| CentralHuijinInvestmentLtd | State-ownedcorporation | 4.99% | 38,310,500 | ||||||
| NationalSocialSecurityFundNo.113 | Otherdomesticinvestor | 1.63% | 12,535,271 | ||||||
| FeiQIU | Domesticindividual | 0.58% | 4,453,100 | ||||||
| ChinaResourcesSziticTrustCo.,Ltd–No.23TrustPlansofAssembledFunds | Otherdomesticinvestor | 0.55% | 4,195,387 | ||||||
| ChinaResourcesSziticTrustCo.,Ltd–No.13TrustPlansofAssembledFunds | Otherdomesticinvestor | 0.54% | 4,167,400 | ||||||
| NationalpensioncontributionsFundNo.1207 | Otherdomesticinvestor | 0.47% | 3,593,061 | ||||||
| NationalpensioncontributionsFundNo.1005 | Otherdomesticinvestor | 0.43% | 3,285,710 | ||||||
| BankofChina－Dachengpreferredmixedsecuritiesinvestmentfund（LOF） | Otherdomesticinvestor | 0.41% | 3,122,836 | ||||||
| Top10shareholdersofunrestrictedintermsofsale | |||||||||
| Name | Shareamountofunrestrictedintermsofsale | Type | |||||||
| Type | amount | ||||||||
| ShanghaiLihongNewTechnologyInvestmentCo.,Ltd. | 382,751,496 | RMBcommonstocks | 382,751,496 | ||||||
| BILTINGDEVELOPMENTSLIMITED | 129,924,090 | RMBcommonstocks | 129,924,090 | ||||||
| CentralHuijinInvestmentLtd | 38,310,500 | RMBcommonstocks | 38,310,500 | ||||||
| NationalSocialSecurityFundNo.113 | 12,535,271 | RMBcommonstocks | 12,535,271 | ||||||
| FeiQIU | 4,453,100 | RMBcommonstocks | 4,453,100 | ||||||
| ChinaResourcesSziticTrustCo.,Ltd–No.23TrustPlansofAssembledFunds | 4,195,387 | RMBcommonstocks | 4,195,387 | ||||||
| ChinaResourcesSziticTrustCo.,Ltd–No.13TrustPlansofAssembledFunds | 4,167,400 | RMBcommonstocks | 4,167,400 | ||||||
| NationalpensioncontributionsFundNo.1207 | 3,593,061 | RMBcommonstocks | 3,593,061 | ||||||
| NationalpensioncontributionsFundNo.1005 | 3,285,710 | RMBcommonstocks | 3,285,710 | ||||||
| BankofChina－Dachengpreferredmixedsecuritiesinvestmentfund（LOF） | 3,122,836 | RMBcommonstocks | 3,122,836 |
| Relatedoracting-in-concertpartiesamongshareholdersabove | TheCompanyisunawareofwhethertherearerelatedoracting-in-concertpartiesamongshareholdersabove,whichisdefinedbythe“RegulationActofListCompanies’Acquisition”. | ||
| Explanationonthetop10commonshareholdersparticipatinginsecuritiesmargintrading(ifany) | N/A | ||
Thecompany'stop10commonshareholdersandthetop10commonshareholderswithunrestrictedintermsofsalehadn’tengageintheagreedrepurchasetransactionsduringthereportingperiod.
(b)Thetotalamountofthepreferenceshareholdersandthetop10preferenceshareholders
□available√notavailable
3.Importantmatters
(1)Thesituationandthereasonsforthefluctuationofthemainfinancialdataandindexduringthe
reportingperiod
| Items | BeginningoftheyeartotheendoftheSeptember2018 | BeginningoftheyeartotheendoftheSeptember2017 | Flux(%) | Notes |
| Financialexpenses-net | -16,077,864.78 | 1,672,253.28 | -1061.45% | Duetotheexchangeearningsfromthefluctuationsinexchangerate |
| assetsimpairmentloss | 12,166,788.52 | 17,763,765.61 | -31.51% | Duetothedecreaseintheamountofimpairmentonthebasisofthegroup'sbaddebtpolicy. |
| Investmentincome | 131,355,402.02 | 50,305,148.26 | 161.12% | DuetothedisposalofJoyoungSuzhoucompanyandthedividendsfromjointventures |
| including：Investmentincomefromjointventures | 39,720,292.24 | 24,733,193.38 | 60.60% | Duetothedividendsfromjointventures |
| Assetsdisposalincome | 12,719,572.17 | 220,917.58 | 5657.61% | Duetothegovernment'scompensationtothelandandbuildingongroundinZhangqiu,Shandong. |
| minus：Non-operatingexpenses | 6,374,674.57 | 4,730,091.13 | 34.77% | Duetotheincreaseinthelossoffixedassetsinthereportingperiod. |
| Minorityinterests | -3,853,695.47 | 15,218,188.03 | -125.32% | Duetothenewsubsidiary:SharkNinja(China)isstillataloss. |
| Othercomprehensiveincome,netoftax | -2,274,842.44 | -217,107.98 | -947.79% | DuetotheincreasedconversiondifferencesinForeigncurrencyfromthefluctuationsinexchangerate |
| Totalcomprehensiveincomeattributabletominorityinterests | -3,853,695.47 | 15,218,188.03 | -125.32% | Duetothenewsubsidiary:SharkNinja(China)isstillataloss. |
| Cashreceivedrelatingtootheroperatingactivities | 119,993,601.19 | 88,392,420.13 | 35.75% | Duetotheincreaseofthedeposit. |
| Cashpaidrelatingtootheroperatingactivities | 887,214,704.65 | 645,668,246.04 | 37.41% | Duetotheincreaseinadvertisingexpenseandterminalupgradingandtransformationcosts. |
| Netcashflowsfromoperatingactivities | 418,462,966.54 | 120,905,521.88 | 246.11% | Duetothesalesincreaseinthecurrentperiod,resultinginanincreaseincashinflows. |
| Cashreceivedfromreturnsoninvestments | 76,010,375.74 | 28,059,804.44 | 170.89% | Duetothedividendsfromjointventures |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 47,390,251.34 | 1,470,270.00 | 3123.23% | Duetothegovernment'scompensationtothelandandbuildingongroundinZhangqiu,Shandong. |
| Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits | 103,683,299.35 | 6,800,000.00 | 1424.75% | DuetothedisposalofJoyoungSuzhoucompany |
| Cashreceivedrelatingtootherinvestingactivities | 1,085,000,000.00 | 2,485,200,000.00 | -56.34% | Duetothereductionoftheexpiredfinancialproductsinflowsduringthecurrentperiod. |
| Sub-totalofcashinflowsfrominvestmentactivities | 1,320,469,218.58 | 2,521,530,074.44 | -47.63% | Duetothereductionoftheexpiredfinancialproductsinflowsduringthecurrentperiod. |
| Cashpaidtoacquirefixedassets,intangibleassetsandotherlong-termassets | 128,722,563.33 | 23,421,108.72 | 449.60% | Duetothepurchaseofrealestateinthecurrentperiod. |
| Cashpaidrelatingtootherinvestingactivities | 955,000,000.00 | 2,325,000,000.00 | -58.92% | Duetothereductionofthepurchasingfinancialproductsduringthecurrentperiod. |
| Sub-totalofcashoutflowsfrominvestmentactivities | 1,134,215,571.58 | 2,396,339,419.10 | -52.67% | Duetothereductionofthepurchasingfinancialproducts. |
| Netcashflowsfrominvestingactivities | 186,253,647.00 | 125,190,655.34 | 48.78% | Duetothedividendsfromjointventuresanddisposalofsubsidiary. |
| Cashreceivedfromcapitalcontributions | 24,500,000.00 | 800,000.00 | 2962.50% | Duetotheacquisition51%shareholdersofSharkNinja(China)incurrentperiod,resultinginanincreaseinminorityshareholderinput. |
| Cashreceivedrelatingtootherfinancingactivities | 4,800,000.00 | 34,531,627.07 | -86.10% | Thereisnobillsdiscountingthisreportingperiod,andthecompanyreceivedtheequityincentivefundsfromemployees |
| Cashpaymentsfordistributionofdividends,profitsorinterestexpenses | 533,757,728.00 | 23,140,000.00 | 2206.65% | Duetothedistributionofdividendsforcommonstockthisperiod. |
| including：Cashpaymentsfordistributionofdividends,profitsorinterestexpensestominorityinterestinSubsidiary | 0.00 | 23,140,000.00 | -100.00% | Thereisnodistributingdividendstominorityshareholdersduringthecurrentperiod. |
| Sub-totalofcashoutflowsfromfinancingactivities | 697,850,546.96 | 193,844,078.42 | 260.01% | Duetothedistributionofdividendsforcommonstockthisperiod. |
| Netcashflowsfromfinancingactivities | -668,550,546.96 | -158,512,451.35 | -321.77% | Duetothedistributionofdividendsforcommonstockthisperiod. |
| Effectofforeignexchangeratechangesoncashandcashequivalents | 13,698,259.12 | -8,095,356.37 | 269.21% | Duetotheexchangeearningsfromthefluctuationsinexchangerate |
| Netincreaseincashandcash | -50,135,674.30 | 79,488,369.50 | -163.07% | Duetothedistributionofdividendsfor |
| equivalents | commonstockthisperiod,andthereductionofexpiredfinancialproductsinflows | |||
| Items | 30September2018 | 31December2017 | Flux(%) | Notes |
| Accountsreceivable | 223,988,506.26 | 128,531,167.00 | 74.27% | duetotheincreaseinsalesduringthecurrentperiod |
| Advancestosuppliers | 103,261,227.74 | 7,337,681.34 | 1307.27% | DuetoadvancepaymenttoSuppliers. |
| Otherreceivables | 50,326,845.18 | 29,848,168.74 | 68.61% | Duetotheincreaseinbusinessreservefunds. |
| Othercurrentassets | 211,373,728.42 | 368,656,744.17 | -42.66% | Duetothematureofseveralfinancialproductsattheendofthereportingperiod. |
| Constructioninprogress | 1,117,378.41 | 568,244.33 | 96.64% | Duetotheincreaseinconstructionprojects. |
| Long-termprepaidexpenses | 21,291,880.11 | 406,875.00 | 5133.03% | Duetotheamortizationcostofthemarketingfee. |
| Advancesfromcustomers | 279,844,114.18 | 181,961,910.25 | 53.79% | Duetotheincreaseinsalesresultedinanincreaseinadvance. |
| Payrollpayments | 35,616,573.98 | 190,215,056.41 | -81.28% | Duetothepaidthelastyear’sannualbonusduringthisperiod. |
| TaxesPayable | 38,863,458.21 | 148,228,320.54 | -73.78% | Duetothetaxpaymentinthisperiod. |
| Currentportionofnon-currentliabilities | 1,440,000.00 | - | 100.0% | Becausethecompanyshouldbooktheliabilitiesaccordingtotheequityincentiveplan,thebalanceisthematureamountattheendof2018. |
| Othernon-currentliabilities | 3,028,571.41 | 5,274,285.70 | -42.58% | Duetothenormalamortizationofthecompany'soutstandingearningsduringthecurrentperiod. |
| Totalnon-currentliabilities | 3,792,033.92 | 6,095,807.25 | -37.79% | Duetothenormalamortizationofthecompany'soutstandingearningsduringthecurrentperiod. |
| minus：treasurystock | 8,211,947.03 | 64,941,904.13 | -87.35% | Becausethecompanygrantthetreasurystocktoemployeethisperiod. |
| Othercomprehensiveincome | -5,386,562.03 | -3,111,719.59 | -73.11% | DuetotheincreasedconversiondifferencesinForeigncurrencyfromthefluctuationsinexchangerate |
| Minorityinterests | 28,308,574.20 | 7,662,269.67 | 269.45% | Duetotheacquisition51%shareholdersofSharkNinja(China)incurrentperiod,resultinginanincreaseinminorities’interest. |
(2)AnalysisoftheprogressofimportantmattersandtheirimpactandSolutions
(a)OnFebruary14,2018,thecompanyreceivedaletterfromthemajorityshareholder,ShanghaiLihongCompany,inwhichShanghaiLihongCompanywillincreasethecompany’sshareswithitsownandself-financedfundsbymeansofcentralizedbiddingtransactionsfromthesecondarymarket.Thecumulativeamountoftheincreasedsharesisnotlessthan
1%andnomorethan2%ofthecompany'stotalequity.Fordetails,pleaserefertothereportof2018-008and2018-041onCninfowebsite.
(b)InFebruary2018,thecompanysignedtheInvestmentCooperationFrameworkAgreementwithSharkNinja(HongKong)CompanyLimited.Thecompanyintendstoacquire51%shareholdersofSharkNinja(China)TechnologyCo.,Ltd,asubsidiaryofSharkNinja(HongKong)CompanythatlocatedinmainlandChina.InApril2018,the8thmeetingofthe4thBoardofDirectorsofthecompanyexaminedandapprovedthe"ProposalontheAcquisitionof51%EquityofSharkNinja(China)TechnologyCo.,LtdandRelatedTransactions",andagreedthecompanyuseitsowncapitalofRMB12.495milliontocompletetheacquisition.InJuly2018,thetwopartssignedtheagreementonequitytransfer.InAugust2018,thecompanyregisteredthechangewiththeindustryandCommerceAdministrationauthorities.Fordetails,pleaserefertotheannouncementof2018-007,2018-018and2018-043onCninfowebsite.
| Overviewofimportantmatters | Dateofdisclosure | websiteindexforthereportdisclosure |
| ShanghaiLihongCompanyincreasedthecompany’sshares,whichisthecontrollingshareholders | 22February2018 | PleaserefertoAnnouncementaboutincreasingthecompany’sshareholdersbycontrollingshareholdersonCninfowebsite. |
| 11June2018 | PleaserefertoAnnouncementabouttheprogressofincreasingthecompany’sshareholdersbycontrollingshareholdersonCninfowebsite. | |
| Thecompanyacquire51%shareholdersofSharkNinja(China)TechnologyCo.,Ltd | 9February2018 | PleaserefertoAnnouncementaboutthesigningoftheInvestmentCooperationFrameworkAgreementonCninfowebsite. |
| 21April2018 | PleaserefertoAcquisitionof51%EquityofSharkNinja(China)TechnologyCo.,LtdandRelatedTransactionsonCninfowebsite. | |
| 11July2018 | Pleaserefertotheprogressoftheacquisitionof51%equityofSharkNinja(China)TechnologyCo.,LtdonCninfowebsite. |
(3)Commitmentsmadebytheactualcontroller,shareholders,relatedparties,purchasersandotherrelevantpartiesthathavenotbeenfulfilledthecorrespondentpromisewithinthereportingperiod
Thereisnosuchcasesduringthereportingperiod.
(4)Forecastoperatingperformancein2018
Projectedbusinessperformancein2018：Thenetprofitattributabletoshareholdersoflistedcompaniesispositiveanddoesnotbelongtothesituationofturninglossesintoprofits.
| Netprofitmarginattributabletoshareholdersofthecompanyin2018 | -20.00% | To | 20.00% |
| Netprofitfluctuationattributabletoshareholdersofthecompanyin2018(RMBTenthousandYuan) | 55,113.50 | To | 82,670.24 |
| Netprofitattributabletoshareholdersofthecompanyin2017(RMBTenthousandYuan) | 68,891.87 | ||
| Reasonsforfluctuationinperformance | Againstthebackdropofrisingproductioncostsandfiercecompetitionintheindustry,thecompanywillcontinuetoadheretothe"valuemarketing"andinnovatetointroducethenewproductswithmore"highvalue,highquality,highfacevalue",whileinsistonbrandpromotionandchannelconstruction,anddevoteitselftoenhancebrandvalueandprofitability. | ||
(5)Financialassetsmeasuredatfairvalue
□available√notavailable
(6)Illegalexternalguarantee
None
(7)TheNon-operatingfundsoccupationofthecontrollingshareholdersanditsrelatedparties
None
(8)TrustInvestment
None.
(9)Registrationformsforresearch,communicationandinterviewsduringthereportingperiod.
| Date | Receptionmethod | ReceptionObjectType | Basicinformationindex |
| 24August2018 | Onsite | institution | Pleaserefertothecompany’sactivityrecordforinvestorrelationshipson24August2018onCninfowebsite. |
| 18September2018 | Onsite | institution | Pleaserefertothecompany’sactivityrecordforinvestorrelationshipson18and19September2018onCninfowebsite. |
| 19September2018 | Onsite | institution |