Joyoung Co., Ltd.
Abstract of Interim Report 2019
August 2019
Joyoung Co., Ltd. Abstract of Interim Report 2019
Joyoung Co., Ltd.
Abstract of Interim Report 2019
Section I Important Statements
This is an abstract of Interim Report 2019. Investors are kindly reminded to read the complete
version of Interim Report 2019 on the website which is designated by the China Securities Regulatory
Commission to get complete information about operational results, fina ncial statements and future plans
of the Company.
In the event of any discrepancy between the abstract and the full document of annual report,
the full document version shall prevail.
Different opinions from directors, supervi sors and senior management
□Applicable √ N/A
All directors attended the board meeting that reviewed Int erim Report 2019
Modified audit opinion
□Applicable √ N/A
The preliminary plan for dividend distribution and converting capital reserves into share capital for
common shareholders which was considered and approved by the Board
√Applicable □N/A
Convert 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 of 767,312,000, it is proposed that the Company should distribute a cash
dividend of RMB 5 (tax inclusive) and stock dividend of 0 share (tax inclusive) per 10 shares to all the
shareholders and should not convert capital reserves into share capit al.
The preliminary plan for dividend distribution for preferred share s in the reporting period approved by
the Board
□Applicable √ N/A
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Joyoung Co., Ltd. Abstract of Interim Report 2019
Section II Company Profile
1. Company Information
Stock Abbreviation Joyoung Stock Code 002242
Stock Exchange Where the Shares
Shenzhen Stock Exchange
of the Company are Listed
Contact Us Board Secretary Securities Representative
Name Xuning WANG (acting) Minxin MIAO
No.760 Yinhai Street, Jianggan District, No.760 Yinhai Street, Jianggan District,
Address
Hangzhou, Zhejiang Province Hangzhou, Zhejiang Province
Tel. 0571-81639093 0571-81639178
E-mail 002242@joyoung.com 002242@joyoung.com
2. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment to or restatement of accounting data
□ Yes √ No
H1 2019 H1 2018 Flux (%)
Operating revenues (RMB Yuan) 4,186,970,321.87 3,639,589,109.46 15.04%
Net profits attributable to shareholders of the Company (RMB Yuan) 406,005,399.22 370,040,372.12 9.72%
Net profits attributable to shareholders of the Company before
377,487,058.29 292,519,062.00 29.05%
non-recurring gains and losses (RMB Yuan)
Net cash flow from operating activities (RMB Yuan) 176,809,470.46 223,587,114.34 -20.92%
Basic earnings per share (RMB Yuan /share) 0.53 0.482 9.96%
Diluted earnings per share (RMB Yuan /share) 0.53 0.482 9.96%
Weighted average ROE 10.34% 9.84% 0.50%
30 June 2019 31 December 2018 Flux (%)
Total assets (RMB Yuan) 6,002,421,727.97 6,660,086,381.54 -9.87%
Net assets attributable to shareholders of the Company (RMB Yuan) 3,685,902,249.44 3,810,291,395.62 -3.26%
3. Number of Shareholders of the Company and Their Shareholdings
Unit: share
Total number of common shareholders Total number of preferred shareholders with resumed
25,763 0
at the end of the Reporting Period voting rights at the end of the Reporting Period (if any)
Top 10 common shareholders
Total shares Number of Pledged or frozen
Nature of Shareholding shares
Name of shareholder held at the restricted
shareholder percentage
period-end shares held Status Number
Domestic
Shanghai Lihong Enterprise
non-state-owned 50.11% 384,523,746 Pledged 339,272,626
Management Limited
corporation
Foreign
Bilting Developments Limited 16.93% 129,924,090
corporation
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Joyoung Co., Ltd. Abstract of Interim Report 2019
State-owned
Central Huijin Investment Ltd. 4.99% 38,310,500
corporation
Hong Kong Securities Clearing Foreign
3.01% 23,126,724
Co., Ltd. corporation
E Fund Management Co., Ltd. -
Social Insurance Fund Portfolio Others 0.63% 4,800,070
No. 1104
AEGON INDUSTRIAL Fund
Management Co., Ltd. - Industrial
Bank Co., Ltd. - AEGON
Others 0.58% 4,421,642
INDUSTRIAL - Stock Dividend
Specific Multi-Client Asset
Management Plan
Basic Pension Insurance Fund
Others 0.51% 3,929,281
Portfolio No. 1206
Agricultural Bank of China Co., Ltd.
Others 0.49% 3,727,981
- CSI 500 Exchange Trade Fund
National Social Security Fund
Others 0.47% 3,569,766
Portfolio No. 406
Bank of China - Harvest Growth
Open-Ended Security In vestment Others 0.43% 3,327,900
Fund
In April 2019, the shareholding structure of Bilting Developments Limited
changed. MR. Xuning WANG, the actual controller of the Company, became the
controlling shareholder of Bilting Developments Limited (See Report No.
2019-027 of the Company on www.chinainfo.com.cn.). As a result, Shanghai
Related or acting-in-concert parties Lihong Enterprise Management Co., Ltd. and Bilting Developments Limited, both
among shareholders above 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 above, the Company is
uncertain about whether there are related or acting-in-concert parties among
shareholders.
Explanation on common shareholders
participating in securities margin N/A
trading (if any)
4. Change of Controlling Shareholder or Actual Controller in the Reporting Period
Change of controlling shareholder in the Reporting Period
□Applicable √ N/A
No such cases in the Reporting Period
Change of Actual Controller in the Reporting Period
□Applicable √ N/A
No such cases in the Reporting Period.
5.Total Number of Preferred Shareholders and TOP 10 Preferred Shareholders and Their
Shareholdings
□Applicable √ N/A
None in the Reporting Period.
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Joyoung Co., Ltd. Abstract of Interim Report 2019
6. Relevant Information on Corporate Bonds
Does the Company ha ve any undue or unredeemed matured corporate bonds publicly offered in the Stock
Exchange by the date the Interim Report 2019 was submitted
□ Yes √ No
Section III Performance Discussion and Analysis
1. Performance Review of the Reporting Period
Does disclosure requirements of special industries apply
□ Yes √ No
In the first half, the Company has achieved operating revenues of 4,186.97 million Yuan, an
increase of 15.04% year on year. Major categories of the Company have maintained steady growth and
product average sales price has increased significantly as a result o f optimized product mix. Operating
costs were 2,833.17 million Yuan, an increase of 16.22% year on year. Gross profit margin of the
Company was 32.33%, down by 0.69 percentage point year on year. Sales expenses were 620.18
million Yuan, down by 1.92% year on year, with sales expenses ratio at 14.81%. General and
administrative expenses were 159.55 million Yuan, up by 34.92% year on year, with its ratio at 3.81%;
research and development expenses were 143.05 million Yuan, a year -on-year increase of 19.38%.
Total profits achieved by the Company was 468.24 million Yuan, up by 7.83% year on year. Net profits
attributable to Joyoung’s shareholders were 406.01 million Yuan, up by 9.72% year on year. Net
operating cash flow was 176.81 million Yuan, down by 20.92% year on year.
In the Reporting Period, the Company has focused on the small house appliances industry,
dedicated to upgrade in strategy and brand and transform from a soymilk maker company to one offering
quality small house appliances. By introducing the Shark brand, the Company has expanded its
business to household cleaning appliances.
1）Better Life Driven by Innovation
As people’s living standards improved, consumer demands for small house appliances have
increased and upgraded. The pursuit of quality life has taken the place of mere satisfaction of
functionality. Based on the insights into consumer behaviour and consumption trend, Joyoung has
continued to enhance product quality with the spirit of craftsmanship, using smart hardware and software,
the Internet and the Internet of Things.
In the first half of 2019, the Company has launched three models in the product line of self -cleaning
cell-wall-breaking automated soymilk maker, including K1S, K mini and K solo. The K series are not only
soymilk makers, but also multi-functional beverage machines to make coffee, brew tea and prepare baby
formula. The self-cleaning technology is one of the core technologies which the Company has
developed independently throughout these years. Now it has been inventively applied to Joyoung’s
cell-wall-breaking high-speed blenders. Joyoung has once again pioneered in this specific category and
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Joyoung Co., Ltd. Abstract of Interim Report 2019
led the industry to the self-cleaning era after its previous revolutionary breakthroughs that has achieved
cool or heated blending and very low noise level. In the Reporting Period, the Company has launched
the world’s first self-cleaning cell-wall-breaking high-speed blender, Y88.
In traditional heating appliances, the Company has been exploring new ways of cooking. In the first
half, Joyoung has launched S5, the steam rice cooker with liners free of inner-coating, which has
brought great changes to the way people cook rice. It cooks rice with 120 ℃ steam and all-round even
heating, making the rice fluffy, fragrant, nutritious yet never overcooked. More than that, S5 is also a
steamer equipped with different liners. It can be used to cook chicken soup, fish and crabs or even to
sterilize nursing bottles.
2）Integrated Development in Omni-channels
In the Reporting Period, Joyoung has proactively expanded its offline channels with its “customer
centric” strategy. The Company has not only renovated its retail stores and developed its channels in
commercial complexes such as shopping malls, but also built exclusive channels in cluding flagship
stores, brand experience stores and speciality shops, establishing an omni-channel network covering
different markets.
To get close to consumers and understand their needs, the Company has been organizing all sorts
of interactive activities in offline brand stores. Such activities have brought Joyoung’s fan s and users
together to experience the latest products and cook food. Repeated purchases are boosted through
constant communication and interaction like this.
As an important contributor of the Company’s revenue, online business has maintained a robust
growth. The Company has been collaborating with KOLs (Key Opinion Leaders) on new media platforms
like WeChat, Weibo, Taobao Live Stream, TikTok and Kuaishou. With the help of a yo unger and more
popular brand promotion approach, the Company is able to reach out to a wider range of young
consumers and create new demand.
In the Reporting Period, the Company has opened up its self-owned official flagship store on Tmall
with hundreds of thousands of new followers. Through the Joyoung Official Flagship Store, the Company
can have a closer look at its consumers’ shopping behaviour and directly receive their feedback.
Additionally, the store can facilitate mutual interaction, connection and traffic directing with offline retail
ends, that is, integrated development of O2O (Online to Offline).
To promote its new retailing business, Joyoung has built a team to look into new retailing, new
media, big data and wireless applications. A retail system has also been developed to provide service for
exclusive stores. Customers can therefore enjoy one-stop shopping experience and scan to pay easily.
For the Company, it is also more convenient to monitor and share data, interact with fans, direct
consumer traffic and dispatch products from warehouses closest to customers. In this way, the Company
strives to maximize the value of consumer traffic.
3) Enjoy Health & Value Marketing
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Joyoung Co., Ltd. Abstract of Interim Report 2019
In recent years, the Company has been firmly promoting brands and assuring product quality.
Through value marketing, it has released innovative products of high added value, good design and high
quality to meet consumer demand. Via traditional media, vertical media, social media and other new
media, Joyoung has achieved precise value marketing, which has attracted more attention from
consumers, familiarized consumers with its brands and products and stimulated purchase demands.
In the Reporting Period, the Company announced its new brand advocate: enjoy health. It marks
that Joyoung has been upgraded to a younger brand. A-lister Lun DENG is now the new brand
ambassador of Joyoung. Now the Company can provide handy and sleek products, smart and
convenient user-experience and prepared ingredient packages, which enables people t o have a brand
new and healthy lifestyle.
Early this year, K1S, the self-cleaning cell-wall-breaking automated soymilk maker that the
Company newly launched, went viral at London Fashion Week. Soymilk made by Joyoung’s soymilk
maker took the place of the once popular champagne. In May, 2019, Joyoung joined the Tmall Chinese
Fashion Campaign and held the product launch event for S5 in the theme of Steam Revolution in
Kitchen, presenting this original Chinese invention to the world. S5 drew the attention of international
news media including The Guardian, NouvellesD’Europe, London Metro Morning Post, DailyMail and
others.
Such activities can help promote the global influence of Joyoung’s brand and products. They can
deliver the message that Joyoung is a healthy, innovative, sleek and young brand and win the favour and
trust of target consumers.
2. Events Related to Financial Statements
(1) Statements of Any Changes in Accounting Policies, Accounting Estimates and Accounting
Methods as Compared to the Financial Report for the Prior Year.
On March 31, 2017, the Ministry of Finance issued the Accounting Standards for Business
Enterprises No. 22 – Recognition and Measurement of Financial Instruments (Accounting [2017] No. 7)
and Accounting Standards for Business Enterprises No. 23 – Transfer of Financial Assets (Finance
[2017] No. 8), on May 2, 2017, the Accounting Standards for Business Enterprises No. 37 – Financial
Instruments Presentation (Accounting [2017] No. 14) (collectively referred to as the New Financial
Instruments Guidelines) was issued and required that companies only listed in China to have it
implemented starting from January 1, 2019. According to the relevant requirements of the Ministry of
Finance, the Company has changed the accounting policies.
(2) Statements about Retrospective Restatement of Major Accounting Errors in the Reporting
Period
□Applicable √ N/A
None in the Reporting Period.
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Joyoung Co., Ltd. Abstract of Interim Report 2019
(3) Statements for Changes in Scope of the Consolidated Financial Statements as Compared to
the Financial Report for the Prior Year
□Applicable √ N/A
The scope of the consolidated financial statements has not changed as compared to the financial report for the prior year.
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