Ticker: 002242 Stock Abbreviation: Joyoung
Joyoung Co., Ltd.
Abstract of the Semi-Annual Report 2021Section I Important Statements
This is an abstract of the Semi-Annual Report 2021. Investors are kindly reminded to read the complete version of Semi-annual Report 2021on the website, which is designated by the China Securities Regulatory Commission to get complete information about operational results, financialstatements, and future plans of the Company.All directors attended the board meeting that reviewed the Semi-Annual Report.Modified Audit Opinion
□Applicable √ N/A
The preliminary plan for dividend distribution and converting capital reserves into share capital for common shareholders which wereconsidered and approved by the Board
□Applicable √ N/A
The preliminary plan for dividend distribution for preferred shares in the reporting period was approved by the Board
□Applicable √ N/A
Section II Company Profile
1. Company Information
| Stock Abbreviation | Joyoung | Ticker | 002242 | |
| Stock Exchange Where the Shares of the Company are Listed | Shenzhen Stock Exchange | |||
| Contact Us | Board Secretary | Securities Representative | ||
| Name | Xuning WANG (acting) | Minxin MIAO | ||
| Address | No.760 Yinhai Street, Qiantang New District, Hangzhou, Zhejiang Province | No.760 Yinhai Street, Qiantang New District, Hangzhou, Zhejiang Province | ||
| Tel. | 0571-81639093 | 0571-81639178 | ||
| 002242@joyoung.com | 002242@joyoung.com | |||
2. Management's Discussion and Analysis
In the first half of this year, the gross domestic product (GDP) was 53.22 trillion yuan, up 12.7% year-on-year at comparable prices, with atwo-year average growth of 5.3%. Under the strong leadership of the Party Central Committee and the government, the epidemic prevention andcontrol, economic and social development have been coordinated, the domestic economy has continued to recover steadily, and new results havebeen achieved in high-quality development. However, the current global epidemic continues to evolve, the external environment is more complexand severe, the domestic economic recovery is still unstable and uneven, coupled with the rapid rise in international commodity prices this year, thebusiness efficiency of enterprises was under greater pressure and impact.
Pioneer in R&D and Smart Products, with Focus on Mainstream CategoriesIn the first half of the year, the company continued to focus on small household appliances and innovation in mainstream products andinelastic categories by being customer-centric and demand-oriented, and striving to maintain the stable development of gross margin of domesticsales.The Joyoung brand is positioned in quality small appliances sector, focusing on the launch of the HarmonyOS IoT Hand-wash-free HighPerformance Blender Y521, Smart Charcoal Steel Rice Cooker F921, Crystal Diamond Rub-resistant Non-stick Wok, Rexiaojin RO Cold and HotWater Purifier, etc.; The Shark brand is positioned in household cleaning sector, launched Vacmop V5, Steam Scrubber T21, etc., dedicated tomeet people's pursuit of a better and quality life.As a leading brand in the industry, the Company has been able to capture new market demands and react quickly through continuoustechnology and product innovation, efficient digital user communication and product implementation, and fast and accurate marketing strategies.Brand Communication-Channel IntegrationThe Company strives to achieve a comprehensive digital transformation, realizing cross-border operations in different fields such as sociale-commerce, online live streaming, and new retail, so as to seamlessly connect brands, products, and users. As Z generation gradually became themainstream consumer group in the new era, the Company's brand positioning and communication methods have become youthful, reaching thetarget group with proactive and precise full-chain communication to improve the conversion rate along the chain.In the first half of the year, the Company continued to actively layout and expand new channels online and offline, coordinated thedevelopment of traditional e-commerce and content e-commerce, O2O new retail and lower tier markets, grasped the opportunity in live streamingthat is on the rise, focused on developing emerging platforms such as Tiktok and Kuaishou, built one of the fastest powerful self-broadcast matrixesin the industry. Offline channel focused on end shops. The Company opened nearly 200 high-end Shopping Mall stores, and committed to buildinga more comprehensive, flexible and accurate O2O all-domain marketing operation system. The Company explored ways of operating in thehigh-cost, high-flow and high-value offline channels, and comprehensively enhanced the main consumers’ awareness, loyalty, influence andpurchase intention of the brand.
Relying on self-built digital center network, the Company gradually improved digital operation, actively adapted to the general trend of onlineand offline omnichannel development, explored the integration of online and offline development to the greatest extent, diluted and blurred thedefinition and division of traditional channels, built omnichannel development strategy, completed the closed loop of new retail O2O shoppingexperience such as content feed, offline experience, online order, nearby delivery, and door-to-door service, etc., drew consumers, users and fanscloser together, and accumulated valuable big data for future digital economic value.Lean into Blue Ocean while epidemic prevention and control normalized
Although the COVID-19 epidemic is still spreading around the world, as the vaccination rate and personal protection awareness increases,the haze of the epidemic will eventually lift and all the good things will come as expected. In the "double-cycle" economic trend, domestic smallhousehold appliance innovation will continue to lead the global market. Under the influence of upgrading digital influence, the competitiveadvantage of enterprises will be converted from cost advantages to industrial chain advantages, product advantages, and efficiency advantages,etc..
Learning from home appliance consumption history in developed countries, we can see that as income levels rise, household applianceconsumption transforms from functional consumption of large appliances to small household appliances. It is expected that the future of the smallhome appliance industry will be stable and positive, and the space for development is still large. As a leading domestic small household appliancebrand, the Company will insist on innovation, actively grasp the growth trend, research and develop more new categories to meet market demands,enter into new areas such as cleaning appliances, and devote to becoming a full category of high-quality small household appliance leader.
3. Core Competence Analysis
During the reporting period, there was no significant change in the core competence of the Company. The core competence of the Companyis mainly reflected in: The advantages of positioning mid-to-high-end all-category multi-brand; The nationwide online and offline sales network,especially the new retail channels represented by the operational advantages of Shopping Mall and content e-commerce; Taking insight into
consumer needs and focusing on product advantages of core mainstream category innovation; Using digital middle platform to tap the value of bigdata, reinforcing the advantages of digital operation; For more details, please refer to Joyoung’s 2020 Annual Report.
4. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment to or restatement of accounting data
□Applicable √ N/A
| H1 2021 | H1 2020 | Flux | |
| Operating revenues (RMB Yuan) | 4,743,532,346.81 | 4,558,530,041.84 | 4.06% |
| Net profits attributable to shareholders of the Company (RMB Yuan) | 451,454,511.23 | 417,767,085.20 | 8.06% |
| Net profits attributable to shareholders of the Company before non-recurring gains and losses (RMB Yuan) | 348,957,572.66 | 393,051,511.64 | -11.22% |
| Net cash flow from operating activities (RMB Yuan) | -332,426,945.14 | 526,790,909.23 | -163.10% |
| Basic earnings per share (RMB Yuan /share) | 0.58 | 0.54 | 7.41% |
| Diluted earnings per share (RMB Yuan /share) | 0.58 | 0.55 | 5.45% |
| Weighted average return on net assets | 10.30% | 10.71% | -0.41% |
| 30 June 2021 | 31 December 2020 | Flux | |
| Total assets (RMB Yuan) | 8,043,698,615.03 | 9,134,826,691.51 | -11.94% |
| Net assets attributable to shareholders of the Company (RMB Yuan) | 3,972,050,661.55 | 4,283,761,519.10 | -7.28% |
5. Number of Shareholders of the Company and Their Shareholdings
Unit: share
| Total number of common shareholders at the end of the Reporting Period | 24,801 | 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 | 10.64% | 81,593,136 | |||
| Central Huijin Investment Ltd. | State-owned corporation | 2.61% | 19,986,462 | |||
| E Fund Management Co., Ltd. - Social Insurance Fund Portfolio No. 1104 | Others | 1.41% | 10,789,814 | |||
| Basic Pension Insurance Fund Portfolio No. 1001 | Others | 1.27% | 9,721,435 | |||
| Agricultural Bank of China - E Fund Consumer Industry Equity Investment Fund | Others | 1.25% | 9,619,185 | |||
| China Industrial Bank- ICBC Credit Suisse Culture & Sports Industry Equity Fund | Others | 0.99% | 7,567,709 | |||
| Bank of China - Da Cheng Preferred Selection Hybrid Securities Investment Fund (LOF) | Others | 0.73% | 5,613,851 | |||
| Chang Jiang Golden Sail No. 2 Equity Pension Product- Bank of Communications | Others | 0.31% | 2,364,179 | |||
| Related or acting-in-concert parties among | In April 2019, the shareholding structure of Bilting Developments Limited changed. MR. Xuning | |||||
| shareholders above | WANG, the actual controller of the Company, became the actual controller of Bilting Developments Limited (See Report No. 2019-027 of the Company on www.chinainfo.com.cn. ). As a result, 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 common shareholders participating in securities margin trading (if any) | N/A |
6. Change in controlling shareholders or actual controllers
Change in controlling shareholder during the reporting period
□Applicable √ N/A
Change in actual controller during the reporting period
□Applicable √ N/A
7. Total Number of Preferred Shareholders and TOP 10 Preferred Shareholders and Their Shareholdings
□Applicable √ N/A
8. Relevant Information on Corporate Bonds
□Applicable √ N/A
Section III. Important MattersNone