Ticker: 002242 Stock Abbreviation: Joyoung
Joyoung Co., Ltd.
Abstract of the Semi-Annual Report 2022Section I Important StatementsThis is an abstract of the Semi-Annual Report 2022. Investors are kindly reminded to read the complete version of Semi-annual Report 2022on 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/AThe preliminary plan for dividend distribution and converting capital reserves into share capital for common shareholders which wereconsidered and approved by the Board?Applicable ?N/AConvert capital reserves into share capital
□ Yes √ No
The Board has considered and approved the following dividend payout plan for the Reporting Period: based on the Company's total shares of767,017,000, and deducting the 10,800,000 shares repurchased by the Company, it is proposed that, based on a total of 756,217,000 shares, theCompany should distribute a cash dividend of RMB 5.0 (tax inclusive) and 0 stock dividend (tax inclusive) per 10 shares to all the shareholders andshould not convert capital reserves into share capital.The preliminary plan for dividend distribution for preferred shares in the reporting period was approved by the Board?Applicable √ N/ASection 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 | Minxin MIAO | ||
| Address | No.760 Yinhai Street, Qiantang New District, Hangzhou, Zhejiang Province | ||
| Tel. | 0571-81639178 | ||
| 002242@joyoung.com | |||
2. Management's Discussion and Analysis
In the first half of this year, gross domestic product (GDP) was 56.26 trillion yuan, up 2.5% year-on-year; of which, GDP in the second quarterwas 29.25 trillion yuan, up 0.4% year-on-year. Under the strong leadership of the Party and the government, all regions efficiently coordinated theepidemic prevention and control and focused on the economic and social development. With a series of policies to stabilize growth and promoteconsumption taking effect, consumption continued to recover in general.The current global epidemic continues to evolve, the external environment is complex and severe, the United States and the euro zone CPIcontinued to rise, especially the recent increase in the rate of expansion, record highs. The sustained high international commodity prices putpressure on the business efficiency of enterprises.Space technology empowered high-quality small applianceIn the first half of the year, the company focused on the space series products and mid and high-end products, launched cell-wall breakingblender with anti-bacteria material, three-dimensional hot air heating technology non-flip air fryer, 0 coating rice cooker with water film technology,water purifier with heating function and anti-bacteria material, Damowang frying pan and other products, which enhanced the brand awareness.The self-cleaning function of small appliances has become a necessary option for product optimization and upgrading, from the kitchen to thewhole house, from the " hand washing free" cell-wall breaker to the "one key self-cleaning" Joyoung floor scrubber, the company did well inconsumer insight, grasped the mainstream upgrading direction of the scrubber - sterilization, anti-bacteria and anti-odor, added automatic dryingfunction and electrolysis of water to remove bacteria function.From small kitchen appliances to small cleaning appliances, from making consumers eat healthy to live healthy, this is not only categoryexpansion and technological innovation, but also the inheritance of brand genes “health and innovation“and company values to meet the people'saspirations for a better life.Through continuous technology and product innovation, efficient digital user communication and product upgrading, and fast and accuratemarketing strategies, the company has been able to capture new market demands and respond quickly, and continue to lead the industry.Deep integration across omni-channelsThe company adheres to the brand concept of "Healthy and Enjoyable" and continues to promote the brand rejuvenation. As young people ofGeneration Z gradually become the mainstream consumer group in the new era, the company's brand positioning and communication methods arebecoming more and more youthful, and the active and precise communication method of the whole chain can reach more target groups andimprove the conversion rate of the chain, so that the original intelligent technology products can enter the lives of more young consumers.In the first half of the year, the company continued to actively layout and expand new channels online and offline, coordinate the developmentof traditional e-commerce and content e-commerce, O2O new retail and lower-tier markets, grasp the opportunity of the development of contente-commerce including tiktok and Kuaishou, build a comprehensive live broadcast matrix in the industry; At the same time, the company has beenactively investing in the construction of space technology stores, increase the sales team's incentive, encourage more experienced sales to carryout live broadcast, to build a more comprehensive, flexible and accurate O2O digital marketing operation system, to explore a better way ofoperating among high-cost, high-flow and high-value offline channels, and to comprehensively enhance the main consumers’ awareness, loyaltyand willingness to buy from the company .
Relying on the company's self-built digital platform, the company gradually improves digital operation, actively adapts to the general trend ofomnichannel development, explores the integration of online and offline development to the greatest extent, dilutes and blurs the definition anddivision of traditional channels, builds omnichannel development strategy, builds and completes the closed loop of new retail O2O shoppingexperience, and strives to achieve comprehensive digital transformation of business.Flexible strategies towards new categories
The international situation is complicated and changeable, the epidemic prevention and control has become normalized, the production costof enterprises is rising, and the competition environment is still fierce, but all the gloom will eventually dissipate, and a better future is coming asexpected while a much more efficient operation is required. In the context of the in-depth development of digital economy, the competitiveadvantage of enterprises will also be converted from the single advantage to industrial chain advantage, product innovation advantage, andbusiness efficiency advantage, etc.
As a leading company in the domestic small home appliance industry, the company researches and innovates more new products to meet themarket demand, and locates them in the middle end, fully enters the small cleaning appliances market, and achieves full category coverage in thefield of small home appliances.The company will continue to expand and strengthen the brand asset value of "Family Kitchen" + "Hope Kitchen" + "Space Kitchen", activelyadapt to the changing market environment, play the advantage of insight into consumer needs, adhere to the retail sales-driven model, fully developnew channels, to build the company into a full category of high-quality small household appliances leader.
3. Core Competence Analysis
During the reporting period, there were no significant changes in the core competencies of the company. The company has three brandassets of "Home Kitchen" + "Hope Kitchen" + "Space Kitchen": hundreds of millions of products are providing convenience for users' "HomeKitchen", thousands of "Hope Kitchens" provide meals for over 500,000 rural children every day, and "Space Kitchen" provides better diet and waterfor astronauts on the Chinese space station.
The company did well in consumer insight, focused on the core mainstream category innovation, comprehensively developed the mid-endproduct line, timely captured the new market demand and responded quickly, and continued to lead the industry development direction. Thecompany built nationwide online and offline sales network, especially the new offline retail channels represented by Shopping Mall and SpaceTechnology stores, achieving O2O integration development and high value conversion of users, and achieving accurate coverage of different circlesof consumers with a three-dimensional multi-level sales network; With the self-built digital center network, the company continuously strengthenedand improved its digital operation advantages, and accumulated valuable big data foundation for the future in-depth mining of digital economy,creating value for the company and shareholders; please refer to the 2021 Annual Report for details.
4. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment to or restatement of accounting data
□Applicable √ N/A
| H1 2022 | H1 2021 | Flux | |
| Operating revenues (RMB Yuan) | 4,710,448,144.61 | 4,743,532,346.81 | -0.70% |
| Net profits attributable to shareholders of the Company (RMB Yuan) | 346,406,390.76 | 451,454,511.23 | -23.27% |
| Net profits attributable to shareholders of the Company before non-recurring gains and losses (RMB Yuan) | 299,028,193.10 | 348,957,572.66 | -14.31% |
| Net cash flow from operating activities (RMB Yuan) | 464,033,063.69 | -332,426,945.14 | 239.59% |
| Basic earnings per share (RMB Yuan /share) | 0.45 | 0.58 | -22.41% |
| Diluted earnings per share (RMB Yuan /share) | 0.45 | 0.58 | -22.41% |
| Weighted average return on net assets | 8.32% | 10.30% | -1.98% |
| 30 June 2022 | 31 December 2021 | Flux | |
| Total assets (RMB Yuan) | 7,090,645,917.50 | 8,516,380,670.95 | -16.74% |
| Net assets attributable to shareholders of the Company (RMB Yuan) | 3,692,205,500.83 | 4,263,662,880.72 | -13.40% |
5. Number of Shareholders of the Company and Their Shareholdings
Unit: share
| Total number of common shareholders at the end of the Reporting Period | 44,811 | 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 | 50.13% | 384,523,746 | Pledged | 307,618,897 | |
| BILTING DEVELOPMENTS LIMITED | Foreign corporation | 16.94% | 129,924,090 | Pledged | 103,939,172 | |
| Hong Kong Securities Clearing Co., Ltd. | Foreign corporation | 8.82% | 67,651,802 | |||
| Central Huijin Investment Ltd. | State-owned corporation | 1.46% | 11,201,233 | |||
| Basic Pension Insurance Fund Portfolio No. 1001 | Others | 0.91% | 7,001,435 | |||
| Bank of China-Invesco Great Wall Strategic Selection and Flexible Allocation Mixed Securities Investment Fund | Others | 0.40% | 3,089,769 | |||
| China Universal Asset Management Co.,Ltd - Social Security Fund 423 Portfolio | Others | 0.40% | 3,045,400 | |||
| China Universal Asset Management Co.,Ltd-Social Security Fund 1103 Portfolio | Others | 0.27% | 2,041,100 | |||
| National Social Security Fund 101 Portfolio | Others | 0.25% | 1,940,292 | |||
| Guosen Securities Co. | State-owned corporation | 0.24% | 1,860,776 | |||
| Related or acting-in-concert parties among shareholders above | In April 2019, the shareholding structure of Bilting Developments Limited changed. MR. Xuning 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 Matters
None