Ticker: 002242 Stock Abbreviation: Joyoung Joyoung Co., Ltd. Abstract of Interim Report of the First Quarter 2021 Joyoung Co., Ltd. Abstract of Interim Report of the First Quarter 2021 Section I Important Statements The Board of Directors, the Supervisory Committee as well as all the directors, supervisors and senior management staff of Joyoung Co., Ltd. (hereinafter referred to as the “Company”) have guaranteed that this Report contains no false record, misleading statement or material omission and shall be jointly and severally liable for the factuality, accuracy and completeness of the information given in this Report. All directors attended the board meeting that reviewed this Report. Ningning YANG, CEO of the company; Jiantiao QIU, CFO of the company, and Wen GUO, Chief Accountant of Accounting Institution, declared that the quarterly financial statements should be true, accurate and complete. In the event of any discrepancy between the abstract and the full document of the Report, the complete version in Chinese shall prevail. 1 Joyoung Co., Ltd. Abstract of Interim Report of the First Quarter 2021 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 From 1 January 2021 From 1 January 2020 to YoY change to 31 March 2021 31 March 2020 Operating revenue (RMB) 2,242,694,899.52 1,702,037,045.29 31.77% Net Profit attributable to shareholders of the Company (RMB) 180,103,795.09 146,873,325.81 22.63% Net profit attributable to shareholders of the Company before 161,576,890.20 143,533,461.10 12.57% non-recurring gains and losses (RMB) Net cash flows from operating activities (RMB) -179,932,954.23 143,106,492.72 -225.73% Basic earnings per share (RMB / share) 0.24 0.19 26.32% Diluted earnings per share (RMB / share) 0.23 0.19 21.05% Increased by 0.28 Weighted average return on net assets 4.12% 3.84% percentage point 31 March 2021 31 December 2020 Flux Total assets (RMB) 8,621,160,146.97 9,134,826,691.51 -5.62% Net assets attributable to shareholders of the Company 4,465,160,802.75 4,283,761,519.10 4.23% (RMB) Non-recurring gain and loss items and amounts thereof Unit: RMB From 1 January 2021 Item Note to 31 March 2021 Profit or loss from disposal of non-current assets (including the write off of the provision for impairment 108,899.57 of assets) Government grants included in the current profit or loss (that is closely related to the operations of the 5,076,094.43 Company, except for those of fixed quotas or amounts according to the nationally unified standards) 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 19,838,743.14 liabilities, derivative financial liabilities and other debt investments, excluding the effective hedging business related to the Company’s normal business operations Other non-operating income or expenses except the above items -1,291,305.36 Less: Impact of income taxes 5,042,204.03 Impact of minority interests (after tax) 163,322.86 2 Joyoung Co., Ltd. Abstract of Interim Report of the First Quarter 2021 Total 18,526,904.89 -- For non-recurring profit or loss items defined by the Company according to the definitions under the Interpretative Announcement on Information Disclosure of Companies Offering Securities to the Public No. 1 — Non-recurring Profit or Loss and the non-recurring profit or 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 Total number of preferred shareholders with resumed voting 29,452 0 the end of the Reporting Period rights at the end of the Reporting Period (if any) Top 10 common shareholders Total shares Number of Pledged or frozen shares Nature of Shareholding Name of shareholder held at the restricted shareholder percentage Status Number period-end shares held Domestic Shanghai Lihong Enterprise Management Limited non-state-owne 50.12% 384,523,746 Pledged 307,618,897 d corporation Foreign BILTING DEVELOPMENTS LIMITED 16.94% 129,924,090 corporation Foreign Hong Kong Securities Clearing Co., Ltd. 8.62% 66,147,139 corporation State-owned Central Huijin Investment Ltd. 4.99% 38,310,500 corporation E Fund Management Co., Ltd. - Social Insurance Others 1.43% 11,000,114 Fund Portfolio No.1104 Agricultural Bank of China Co., Ltd. - E Fund Others 1.25% 9,619,185 Consumer Industry Securities Investment Fund Bank of China Co., Ltd. - Dacheng Preferred Hybrid Others 0.73% 5,613,851 Securities Investment Fund (LOF) Basic Pension Insurance Fund Portfolio No. 1001 Others 0.51% 3,897,821 National Social Security Fund Portfolio No. 101 Others 0.29% 2,228,692 PICC Property and Casualty Company Limited - Others 0.29% 2,189,905 Traditional - General Insurance Products 3 Joyoung Co., Ltd. Abstract of Interim Report of the First Quarter 2021 Top 10 non-restricted common shareholders Number of Type of shares Name of shareholder non-restricted Type of shares Number shares held 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. 66,147,139 RMB common stock 66,147,139 Central Huijin Investment Ltd. 38,310,500 RMB common stock 38,310,500 E Fund Management Co., Ltd. - Social Insurance Fund Portfolio No. 1104 11,000,114 RMB common stock 11,000,114 Agricultural Bank of China Co., Ltd. - E Fund Consumer Industry Securities Investment Fund 9,619,185 RMB common stock 9,619,185 Bank of China Co., Ltd. - Dacheng Preferred Hybrid Securities Investment Fund (LOF) 5,613,851 RMB common stock 5,613,851 Basic Pension Insurance Fund Portfolio No. 1001 3,897,821 RMB common stock 3,897,821 National Social Security Fund Portfolio No. 101 2,228,692 RMB common stock 2,228,692 PICC Property and Casualty Company Limited - Traditional - General Insurance Products 2,189,905 RMB common stock 2,189,905 In April 2019, the shareholding structure of Builting Developments Limited changed. MR. Xuning WANG, the controlling shareholder of the Company, became the controlling shareholder of Builting 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 Builting Developments Limited, both Related or acting-in-concert parties 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, 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 N/A securities margin trading (if any) The company's top 10 common shareholders and the top 10 common shareholders with unrestricted in terms of sale hadn’t engage in the 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 4 Joyoung Co., Ltd. Abstract of Interim Report of the First Quarter 2021 Section III Significant Events 1. Major Changes of Main Items in Financial Statements and Financial Indicators within the Report Period, as well as the Reasons for the Changes Item 31 March 2021 31 December Flux Notes 2020 Accounts receivable 522,763,903.50 212,481,359.50 146.03% Mainly due to the increase of product sales in the reporting period Receivables financing 333,370,502.19 758,694,902.66 -56.06% Mainly due to the endorsement of notes receivable in the period-end Advances to suppliers 88,690,682.37 16,243,257.44 446.02% Mainly due to prepayments to suppliers to secure the price of materials in the reporting period Construction in progress 23,338,512.88 11,012,005.02 111.94% Mainly due to the expansion of plant Right-of-use assets 29,957,802.04 100.00% Mainly due to the recognition of right-of-use assets and lease liabilities Lease liability 26,264,669.73 100.00% etc. in the current period as a result of the implementation of the new Current portion of non-current 5,811,628.54 100.00% leasing standards liabilities Notes payable 2,392,728,071.83 1,227,524,091.85 94.92% Mainly due to the increase of notes payable issued in the reporting period Accounts payable 1,031,043,215.04 2,445,262,708.10 -57.84% Mainly due to the payment in the period-end Contractual liabilities 294,278,193.79 568,863,419.80 -48.27% Mainly as a result of recognition of prior period advance from customers in the current period Employee benefits payable 71,254,761.77 239,440,390.99 -70.24% Mainly due to the yearly bonus payment Minority interests 18,536,799.25 -1,269,760.66 1559.87% Mainly as a result of the minority shareholder's capital increase received by SharkNinja (China) in the reporting period Item From 1 January From 1 January Flux Notes 2021 to 31 March 2020 to 31 March 2021 2020 Credit impairment losses -11,723,977.88 -6,469,206.43 -81.23% Mainly due to the increase in accounts receivable balance during the period and the corresponding credit impairment loss provision Selling expenses 353,355,791.17 236,972,214.32 49.11% Mainly due to the increase on factoring expenses Mainly due to the increase in labour 55,864,365.17 30,216,691.30 84.88% Mainly due to the receipt of bill security in the reporting period costs and investment in advertising and promotional activities during the period Payments of taxes and surcharges 167,391,566.79 78,640,320.48 112.86% Mainly due to increased tax payments during the period Net cash flows from operating -179,932,954.23 143,106,492.72 -225.73% Mainly due to payment for goods activities Cash paid to acquire fixed assets, 15,066,714.96 2,008,000.25 650.33% Mainly as a result of increased investment in construction in progress intangible assets and other long-term during the period assets Cash paid to acquire investments 21,000,000.00 5,202,789.49 303.63% Mainly as a result of the purchase of equity instruments during the period 5 Joyoung Co., Ltd. Abstract of Interim Report of the First Quarter 2021 Cash received relating to other 66,400,000.00 275,000,000.00 -75.85% Mainly due to less financing bank acceptance bills in the reporting period financing activities Cash payments relating to other 210,000,000.00 -100.00% Mainly due to outstanding financing bank acceptance bills in the reporting financing activities period Cash received from capital 24,500,000.00 100.00% Mainly as a result of the minority shareholder's capital increase received contributions by SharkNinja (China) 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 Other Relevant 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 January to June, 2021 Warnings and explanations of reasons why the cumulative net profit from the beginning of the year to the end of the next reporting period 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: RMB 10,000 Source of fund for trust Amount of recorded trust Type Premature balance Overdue balance investment investment Bank financial products Self-owned capital 53,800 135,125 0 Total 53,800 135,125 0 The specific situation of high-risk, low security, poor liquidity or non-guarantee trusted wealth management of significant amount □ Applicable √ Not applicable 6 Joyoung Co., Ltd. Abstract of Interim Report of the First Quarter 2021 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 guarantee □ 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. □ Applicable √ Not applicable 7