Joyoung Co.,Ltd. Third Quarterly Report Ticker: 002242 Stock Abbreviation: Joyoung Joyoung Co., Ltd. Interim Report of the Third Quarter 2021 The Company and all members of the Board of Directors have guaranteed that the information disclosed is true, accurate and complete, and contains no false record, misleading statements or material omissions. Important notes: 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. CEO of the Company, CFO of the Company, and Chief Accountant of Accounting Institution, declared that the quarterly financial statements should be true, accurate and complete. In case of any discrepancy, the Chinese version of the report shall prevail. Whether the third quarterly report was audited □ Yes √ No I. Key Accounting Data and Financial Indicators 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 From 1 July 2021 to YoY Change 2021 to 30 YoY Change 30 September 2021 September 2021 Operating revenue (RMB) 2,288,421,316.19 -9.35% 7,031,953,663.00 -0.72% Net Profit attributable to shareholders of the Company 211,704,401.73 -6.42% 663,158,912.96 2.98% (RMB) Net profit attributable to shareholders of the Company 197,518,780.25 -5.51% 546,476,352.91 -9.24% before non-recurring gains and losses (RMB) Net cash flows from operating activities (RMB) —— —— -459,813,538.33 -154.97% Basic earnings per share (RMB / share) 0.29 -3.33% 0.87 3.57% Diluted earnings per share (RMB / share) 0.28 -6.67% 0.86 2.38% Decreased by 1.78 Decreased by 2.17 Weighted average return on net assets 4.07% 14.37% percent point percent point 30 Sep. 2021 30 Sep. 2020 Flux Total assets (RMB) 7,580,907,506.60 9,134,826,691.51 -17.01% Net assets attributable to shareholders of the 4,184,856,332.93 4,283,761,519.10 -2.31% Company (RMB) 1 Joyoung Co.,Ltd. Third Quarterly Report 2. Non-recurring gain and loss items and amounts thereof Unit: RMB From 1 July 2021 to 30 From 1 January 2021 to 30 Item Note September 2021 September 2021 Profit or loss from disposal of non-current assets (including the write -196,760.88 6,909,911.46 off of the provision for impairment of assets) Government grants included in the current profit or loss (that is closely related to the operations of the Company, except for those 6,235,526.81 76,490,396.77 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 4,075,069.67 49,056,454.34 financial assets, trading financial 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 8,415,960.69 15,653,453.58 Less: Impact of income taxes 4,390,330.59 31,147,097.33 Impact of minority interests (after tax) -46,155.78 280,558.77 Total 14,185,621.48 116,682,560.05 -- Details of other profit and loss items that meet the definition of non-recurring profit or loss □ Applicable √ Not applicable For 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 3. Changes in key accounting data and financial indicators and reasons for such changes Unit: RMB Item 30 September 31 December Flux Notes 2021 2021 Trading financial assets 543,268,397.23 1,246,680,033.61 -56.42% Mainly due to redemption of wealth management products at the end of the period Notes receivable 1,256,645,555.26 1,895,450,516.93 -33.70% Mainly due to the decrease in notes collections in the current period Accounts receivable 776,781,891.28 212,481,359.50 265.58% Mainly due to the increase in receivables from JS Global Trading HK Limited, which have not yet reached their due dates Receivables financing 446,551,564.74 758,694,902.66 -41.14% Mainly due to the endorsement of notes receivable in the period-end Prepaid expense 83,769,484.63 16,243,257.44 415.72% Mainly due to the increase in raw materials and the increase in the amount of locking in raw material prices during the period Other receivables 92,928,264.62 168,782,890.42 -44.94% Mainly due to the recovery of plant and compensation for land resumption during the period Construction in progress 54,270,244.98 11,012,005.02 392.83% Mainly due to the new industrial factory project in the current period Long-term deferred expense 9,392,145.74 4,273,916.45 119.76% Mainly due to the increase in advertising and promotion expenses in the current period Notes payable 1,601,309,031.91 1,227,524,091.85 30.45% Mainly due to the higher use of notes for settlement in the period Accounts payable 1,145,891,369.68 2,445,262,708.10 -53.14% Mainly due to the higher use of prepaid expense for 2 Joyoung Co.,Ltd. Third Quarterly Report settlement in the period Unearned revenue 1,301,873.47 -100.00% Mainly due to the decrease in rent received in advance during the period Contract liability 308,062,516.01 568,863,419.80 -45.85% Mainly due to the decrease in advance receipts in the current period Payroll payable 30,423,598.12 239,440,390.99 -87.29% Mainly due to bonus payment at the beginning of the period Other payables 79,796,888.57 143,383,890.67 -44.35% Mainly due to the decrease in accrued unpaid expenses in the current period Right-of-use asset 48,035,043.99 This is mainly due to the recognition of right-of-use assets Lease liability 22,035,656.08 and lease liabilities as a result of the implementation of the new leasing standards in the current period Current portion of non-current 29,151,811.52 liabilities Other current liabilities 40,048,127.08 72,741,689.90 -44.94% Mainly due to decrease in contract liabilities and related stay - recognition tax Minority interests -6,525,688.24 -1,269,760.66 -413.93% Mainly due to the loss of SharkNinja (China) in the current period Item From 1 January From 1 January YoY Note 2021 to 30 2021 to 30 September 2021 September 2020 Taxes and surcharges 27,956,551.98 40,944,630.40 -31.72% Mainly due to the decrease in city construction tax and education surcharge Financial expense -20,735,319.66 -13,260,474.11 -56.37% Mainly due to the increase in interest income Other income 76,730,424.69 26,604,473.22 188.41% Mainly due to the increase in government subsidies in the current period Investment income 53,838,899.20 20,982,567.45 156.59% Mainly due to the increase in income from long-term investments and wealth management investments in the current period Gains/(Losses) on changes in fair 13,058,790.16 -9,828,547.70 232.87% Mainly due to the increase in the fair value of the fund value during the period Credit impairment losses -12,732,405.68 -20,628,705.62 38.28% Mainly due to the decrease in bad debts from other receivable during the period Asset impairment losses -9,619,182.89 -5,061,750.94 -90.04% Mainly due to the increase in bad debts of prepaid expense Non-operating income 14,731,647.50 4,007,813.38 267.57% Mainly due to the receipt of compensation income during the period Non-operating expense 10,318,936.96 5,607,292.43 84.03% Mainly due to the increase in donation expenses in the current period Net cash flows from operating -459,813,538.33 836,525,901.98 -154.97% Mainly due to the payment for raw materials in the current activities period Cash received from returns on 10,851,423.00 3,500,000.00 210.04% Mainly due to the increase in cash received from the investments disposal of associates during the period Net cash received from disposal 150,940,690.59 28,432,063.55 430.88% Mainly due to the recovery of the prior period's disposal of of fixed assets, intangible assets the South Plant in the current period and other long-term assets Cash paid to acquire fixed assets, 69,179,022.89 52,198,209.64 32.53% Mainly due to the addition of construction in progress during intangible assets and other the period long-term assets Cash paid to acquire investments 23,540,303.16 15,202,789.49 54.84% Mainly due to the increase in the purchase of equity instruments and financial instruments during the period Cash paid relating to other 2,276,500,000.00 3,303,300,000.00 -31.08% Mainly due to the decrease in wealth management product investing activities purchases in the current period Cash received relating to other 25,520.00 829,053,052.04 -100.00% Mainly due to the decrease in financing bank acceptance financing activities bills received during the period Sub-total of cash inflows from 24,525,520.00 853,553,052.04 -97.13% Mainly due to the decrease in financing bank acceptance financing activities bills received during the period Cash payments for interest 767,017,000.00 444,917,420.00 72.40% Mainly due to the increase in dividend distribution for the expenses and distribution of period dividends or profits Cash payments relating to other 50,136,000.00 360,038,000.00 -86.07% Mainly due to the decrease in payment of financing bank financing activities acceptance bills in the period Net cash flows from financing -792,627,480.00 48,597,632.04 -1731.00% Mainly due to the decrease in payment of financing bank activities acceptance bills in the period 3 Joyoung Co.,Ltd. Third Quarterly Report II. Shareholder Information 1. Total number of common shareholders and shareholdings of the top ten common shareholders at the period-end Unit: share Total number of preferred Total number of common shareholders at the end of the shareholders with resumed voting 38,916 0 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 non-state-owned 50.13% 384,523,746 Pledged 307,618,897 Management Limited corporation BILTING DEVELOPMENTS LIMITED Foreign corporation 16.94% 129,924,090 Hong Kong Securities Clearing Co., Foreign corporation 11.80% 90,515,456 Ltd. State-owned Central Huijin Investment Ltd. 1.49% 11,442,633 corporation Basic Pension Insurance Fund Portfolio Others 1.40% 10,721,435 No. 1001 China Merchants Bank-Rosefinch Industry Best Choice Hybrid Securities Others 0.57% 4,391,600 Investment Fund China Merchants Bank-Zhuque Rosefinch One-Year Holding Hybrid Others 0.56% 4,263,006 Securities Investment Fund Rosefinch Fund-Shaanxi Coal Industry Company Limited-Shaanxi Coal Others 0.40% 3,032,307 Rosefinch New Economy Industry Single Asset Management Plan GF Securities-Rosefinch Corporate Others 0.38% 2,882,320 Preferred Equity Fund Bank of Korea- Equity Fund Foreign corporation 0.30% 2,336,500 Top 10 non-restricted common shareholders Type of shares Name of shareholder Number of non-restricted shares held Type of shares Number 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. 90,515,456 RMB common stock 90,515,456 Central Huijin Investment Ltd. 11,442,633 RMB common stock 11,442,633 Basic Pension Insurance Fund Portfolio No. 1001 10,721,435 RMB common stock 10,721,435 China Merchants Bank-Rosefinch Industry Best Choice 4,391,600 RMB common stock 4,391,600 Hybrid Securities Investment Fund China Merchants Bank-Zhuque Rosefinch One-Year Holding 4,263,006 RMB common stock 4,263,006 Hybrid Securities Investment Fund Rosefinch Fund-Shaanxi Coal Industry Company Limited-Shaanxi Coal Rosefinch New Economy Industry 3,032,307 RMB common stock 3,032,307 Single Asset Management Plan GF Securities-Rosefinch Corporate Preferred Equity Fund 2,882,320 RMB common stock 2,882,320 Bank of Korea- Equity Fund 2,336,500 RMB common stock 2,336,500 Related or acting-in-concert parties among shareholders In April 2019, the shareholding structure of Bilting Developments Limited 4 Joyoung Co.,Ltd. Third Quarterly Report above changed. MR. Xuning WANG, the controlling shareholder 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 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 the top 10 common shareholders participating N/A in securities margin trading (if any) 2.Total Number of Preferred Shareholders and TOP 10 Preferred Shareholders and Their Shareholdings □ Applicable √ Not applicable III. Other Significant Events □ Applicable √ Not applicable VI. Quarterly Financial Statements 1. Financial Statements 1.1 Consolidated Balance Sheet Prepared by: Joyoung Co., Ltd. Unit: RMB Item 30 September 2021 31 December 2021 Current assets: Cash at bank and on hand 1,555,751,114.72 1,961,209,198.52 Deposit reservation for balance Lending funds Trading financial expense 543,268,397.23 1,246,680,033.61 Derivative financial assets Notes receivable 1,256,645,555.26 1,895,450,516.93 Accounts receivable 776,781,891.28 212,481,359.50 Receivables financing 446,551,564.74 758,694,902.66 Prepaid expense 83,769,484.63 16,243,257.44 Premium receivable Reinsurance accounts receivable Provision of cession receivable Other receivables 92,928,264.62 168,782,890.42 Including: interest receivable Dividend receivable Redemptory monetary capital for sale Inventories 778,146,716.56 944,928,730.94 Contract assets Holding assets for sale 5 Joyoung Co.,Ltd. Third Quarterly Report Item 30 September 2021 31 December 2021 Current portion of non-current liabilities Other current assets 122,244,513.68 95,244,781.09 Total current assets 5,656,087,502.72 7,299,715,671.11 Non-current assets: Issuance of loans and advances Equity expense Other equity investments Long-term receivables 20,627,825.00 23,550,500.00 Long-term equity investments 193,081,224.56 182,672,045.70 Investments in other equity instruments 282,552,082.98 261,574,880.56 Other non-current financial assets 370,180,059.85 354,580,966.53 Investment properties 95,652,730.16 91,011,579.14 Fixed assets 604,782,694.56 646,310,542.44 Construction in progress 54,270,244.98 11,012,005.02 Productive biological asset Oil and gas assets Right-of-use assets 48,035,043.99 Intangible assets 122,529,879.92 124,865,929.90 Development expenditures Goodwill Long-term prepaid expenses 9,392,145.74 4,273,916.45 Deferred tax assets 58,716,072.14 70,258,654.66 Other non-current assets 65,000,000.00 65,000,000.00 Total non-current assets 1,924,820,003.88 1,835,111,020.40 TOTAL ASSETS 7,580,907,506.60 9,134,826,691.51 Current liabilities: Short-term borrowings Loans from the central bank Loans from other banks Trading financial liabilities Derivative financial liability Notes payable 1,601,309,031.91 1,227,524,091.85 Accounts payable 1,145,891,369.68 2,445,262,708.10 Unearned revenue 1,301,873.47 Contract liabilities 308,062,516.01 568,863,419.80 Financial assets sold for repurchase Deposits from customers and interbank Receivings from vicariously traded securities Receivings from vicariously sold securities Payroll payable 30,423,598.12 239,440,390.99 Tax payable 91,458,330.05 101,144,277.49 Other payables 79,796,888.57 143,383,890.67 Including: Interest payable Dividend payable Handling fees and commissions payable Dividend payable for reinsurance 6 Joyoung Co.,Ltd. Third Quarterly Report Item 30 September 2021 31 December 2021 Holding liabilities for sale Current portion of non-current liabilities 29,151,811.52 Other current liabilities 40,048,127.08 72,741,689.90 Total current liabilities 3,326,141,672.94 4,799,662,342.27 Non-current liabilities Reserve fund for insurance contracts Long-term borrowings Bonds payable Including: Preferred stock Perpetual bonds Lease liabilities 22,035,656.08 Long-term payables Long-term payroll payable Accrued liabilities Deferred income 1,369,375.06 1,570,000.00 Deferred tax liabilities 53,030,157.83 51,102,590.80 Other non-current liabilities Total non-current liabilities 76,435,188.97 52,672,590.80 Total liabilities 3,402,576,861.91 4,852,334,933.07 Shareholders’ equity Share capital 767,033,000.00 767,169,000.00 Other equity instruments Including: preferred stock Perpetual bond Capital surplus 942,348,540.87 933,782,862.84 Less: Treasury stock Other comprehensive income 20,606,021.56 21,584,865.16 Special reserve Surplus reserve 397,820,873.71 397,820,873.71 General risk reserve Undistributed profits 2,057,047,896.79 2,163,403,917.39 Total equity attributable to shareholders of the Company 4,184,856,332.93 4,283,761,519.10 Minority interests -6,525,688.24 -1,269,760.66 Total shareholders’ equity 4,178,330,644.69 4,282,491,758.44 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 7,580,907,506.60 9,134,826,691.51 Legal representative: Ningning Yang Principal in charge of accounting: Jiantiao Qiu Head of accounting department: Wen Guo 1.2 CONSOLIDATED INCOME STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2021 Unit: RMB For the nine months ended 30 For the nine months ended Item September 2021 30 September 2020 Total revenue 7,031,953,663.00 7,082,944,404.29 Including: Operating revenue 7,031,953,663.00 7,082,944,404.29 Interest income 7 Joyoung Co.,Ltd. Third Quarterly Report For the nine months ended 30 For the nine months ended Item September 2021 30 September 2020 Earned Premium Handling fees and commission income Total operating cost 6,428,336,085.06 6,354,338,648.43 Including: Cost of sales 4,927,257,842.45 4,880,330,624.02 Interest expense Handling fees and commission expenses Surrender value Net payments for insurance claims Net provision for insurance liability Bond insurance expense Amortized Reinsurance Expenditures Taxes and surcharges 27,956,551.98 40,944,630.40 Selling and distribution expenses 1,036,712,663.47 990,575,154.88 General and administrative expenses 230,586,637.26 237,210,831.38 Research and development expenses 226,557,709.56 218,537,881.86 Financial income -20,735,319.66 -13,260,474.11 Including: Interest expenses 1,506,250.07 Interest income 26,332,788.86 24,919,428.33 Add: Other income 76,730,424.69 26,604,473.22 Investment income/(loss) 53,838,899.20 20,982,567.45 Including: Investment income from associates and joint ventures 10,764,226.72 2,233,431.23 Including: Profits or losses arising from derecognition of financial assets measured at amortized costs Foreign exchange gains/(losses) Net exposure to hedging gains/(losses) Gains/(Losses) on changes in fair value 13,058,790.16 -9,828,547.70 Credit impairment losses -12,732,405.68 -20,628,705.62 Asset impairment losses -9,619,182.89 -5,061,750.94 Losses on disposal of assets 183,434.85 161,334.61 Operating profit 725,077,538.27 740,835,126.88 Add: Non-operating income 14,731,647.50 4,007,813.38 Less: Non-operating expenses 10,318,936.96 5,607,292.43 Total profit 729,490,248.81 739,235,647.83 Less: Income tax expenses 95,219,286.13 102,953,462.58 Net Profit 634,270,962.68 636,282,185.25 (1) Classified by continuity of operations Net profit from continuing operations 634,270,962.68 636,282,185.25 Net profit from discontinued operations (2) Classified by ownership of the equity Attributable to shareholders of the Company 663,158,912.96 643,988,210.04 Minority interests -28,887,950.28 -7,706,024.79 Other comprehensive income, net of tax -978,843.60 5,457,275.76 Other comprehensive income attributable to equity owners of the Company, net -978,843.60 5,457,275.76 of tax (1) Other comprehensive income items which will not be reclassified -119,546.60 -4,469,398.03 subsequently to profit or loss 8 Joyoung Co.,Ltd. Third Quarterly Report For the nine months ended 30 For the nine months ended Item September 2021 30 September 2020 1) Changes arising from remeasurement of defined benefit plan 2) Other comprehensive income that cannot be transferred to profit or loss under the equity method 3) Changes in fair value of investments in other equity instruments -119,546.60 -4,469,398.03 4) Changes in fair value of an enterprise's own credit risk 5) Others (2) Other comprehensive income items which will be reclassified -859,297.00 9,926,673.79 subsequently to profit or loss 1) Other comprehensive income available for transfer to profit or loss under the equity method 2) Changes in fair value of other debt investments 3) Reclassification of financial assets to other comprehensive income 4) Provision for credit impairment of other debt investments 5) Cash flow hedge reserve Differences on translation of foreign currency financial statements -859,297.00 9,926,673.79 Others Other comprehensive income attributable to minority shareholders, net of tax Total comprehensive income 633,292,119.08 641,739,461.01 Attributable to equity owners of the Company 662,180,069.36 649,445,485.80 Attributable to minority interests -28,887,950.28 -7,706,024.79 Earnings per share: (1) Basic earnings per share 0.87 0.84 (2) Diluted earnings per share 0.86 0.84 In the case of a business combination under the same control in the current period, the net income realized by the party being consolidated before the combination was: $0.00, and the net income realized by the party being consolidated in the previous period was: $0.00. Legal representative: Ningning Yang Principal in charge of accounting: Jiantiao Qiu Head of accounting department: Wen Guo 1.3 CONSOLIDATED CASH FLOW STATEMENTS Unit: RMB For the nine months ended 30 For the nine months ended Item September 2021 30 September 2020 1. Cash flows from operating activities Cash received from sales of goods or rendering of services 7,968,153,431.84 8,020,841,116.05 Net increase in customer deposits and deposits from banks and other financial institutions Net decrease in deposits with the Central Bank Net decrease in deposits with other financial institutions Cash received from premiums of original insurance contracts Net cash received from reinsurance operations Net increase in policyholders' savings and investment funds Cash received from interest, fee and commission Net increase in borrowed funds Net increase in funds for repurchase operations Net cash received from agency purchases and sales of securities Refund of taxes and surcharges 40,000,000.00 9 Joyoung Co.,Ltd. Third Quarterly Report For the nine months ended 30 For the nine months ended Item September 2021 30 September 2020 Cash received relating to other operating activities 182,723,928.83 193,095,668.08 Sub-total of cash inflows 8,190,877,360.67 8,213,936,784.13 Cash paid for goods and services 6,256,676,573.58 5,254,913,472.81 Net increase in loans and advances to customers Deposits from banks and other financial institutions Cash payment of benefits from the original insurance contract Net increase in funds removed Cash paid for interest, fee and commission Cash paid as policy dividends Cash paid to and on behalf of employees 655,418,395.48 608,102,856.12 Payments of taxes and surcharges 468,145,557.23 424,150,413.64 Cash paid relating to other operating activities 1,270,450,372.71 1,090,244,139.58 Sub-total of cash outflows 8,650,690,899.00 7,377,410,882.15 Net cash flows from operating activities -459,813,538.33 836,525,901.98 2. Cash flows from investing activities Cash received from disposal of investments 10,851,423.00 3,500,000.00 Cash received from returns on investments 35,090,910.71 33,286,658.78 Net cash received from disposal of fixed assets, intangible assets and other 150,940,690.59 28,432,063.55 long-term assets Net cash received from disposal of subsidiaries and other business units 0.00 Cash received relating to other investing activities 2,186,600,000.00 1,992,900,000.00 Sub-total of cash inflows 2,383,483,024.30 2,058,118,722.33 Cash paid to acquire fixed assets, intangible assets and other long-term 69,179,022.89 52,198,209.64 assets Cash paid to acquire investments 23,540,303.16 15,202,789.49 Net increase in pledged loans Net cash paid to acquire subsidiaries and other business units Cash paid relating to other investing activities 2,276,500,000.00 3,303,300,000.00 Sub-total of cash outflows 2,369,219,326.05 3,370,700,999.13 Net cash flows from investing activities 14,263,698.25 -1,312,582,276.80 3. Cash flows from financing activities Cash received from capital contributions 24,500,000.00 24,500,000.00 Including: Cash received from capital contributions by minority shareholders 24,500,000.00 24,500,000.00 of subsidiaries Cash received from borrowings Cash received relating to other financing activities 25,520.00 829,053,052.04 Sub-total of cash inflows 24,525,520.00 853,553,052.04 Cash repayments of borrowings Cash payments for interest expenses and distribution of dividends or profits 767,017,000.00 444,917,420.00 Including: Cash payments for dividends or profit to minority shareholders of subsidiaries Cash payments relating to other financing activities 50,136,000.00 360,038,000.00 Sub-total of cash outflows 817,153,000.00 804,955,420.00 Net cash flows from financing activities -792,627,480.00 48,597,632.04 4. Effect of foreign exchange rate changes on cash -3,022,527.45 -3,070,481.25 and cash equivalents 10 Joyoung Co.,Ltd. Third Quarterly Report For the nine months ended 30 For the nine months ended Item September 2021 30 September 2020 5. Net increase in cash and cash equivalents -1,241,199,847.53 -430,529,224.03 Add: Cash and cash equivalents at the beginning of the period 1,713,797,184.45 1,160,756,361.34 6. Cash and cash equivalents at the end of the period 472,597,336.92 730,227,137.31 2. Note on accounting adjustments on financial statements 2.1 Financial statement adjustment at the beginning of the initial implementation of new leasing standards from 2021 Whether need to adjust the balance sheet accounts at the beginning of the year √ Yes □ No CONSOLIDATED BALANCE SHEET Unit: RMB Item 31 December 2021 1 January 2021 Adjustment Current Asset: Cash at bank and on hand 1,961,209,198.52 1,961,209,198.52 Deposit Reservation for Balance Lending funds Trading financial statements 1,246,680,033.61 1,246,680,033.61 Derivative financial assets Notes receivable 1,895,450,516.93 1,895,450,516.93 Accounts receivable 212,481,359.50 212,481,359.50 Receivables financing 758,694,902.66 758,694,902.66 Prepaid expense 16,243,257.44 16,243,257.44 Premium receivable Reinsurance accounts receivable Provision of cession receivable Other receivables 168,782,890.42 168,782,890.42 Including: interest receivable Dividends receivable Redemptory monetary capital for sale Inventories 944,928,730.94 944,928,730.94 Contract assets Holding assets for sale Current portion of non-current assets Other current asset 95,244,781.09 95,244,781.09 Total current asset 7,299,715,671.11 7,299,715,671.11 Non-current asset: Disburse loans and advances Debt Investment Other debt investments Long-term receivables 23,550,500.00 23,550,500.00 Long-term equity investments 182,672,045.70 182,672,045.70 Investments in other equity instruments 261,574,880.56 261,574,880.56 Other non-current financial assets 354,580,966.53 354,580,966.53 Investment properties 91,011,579.14 91,011,579.14 11 Joyoung Co.,Ltd. Third Quarterly Report Item 31 December 2021 1 January 2021 Adjustment Fixed assets 646,310,542.44 646,310,542.44 Construction in progress 11,012,005.02 11,012,005.02 Productive biological asset Oil and gas assets Right-of-use assets 37,016,346.38 37,016,346.38 Intangible assets 124,865,929.90 124,865,929.90 Development expenditure Goodwill Long-term deferred expenses 4,273,916.45 4,273,916.45 Deferred tax assets 70,258,654.66 70,258,654.66 Other non-current assets 65,000,000.00 65,000,000.00 Total non-current assets 1,835,111,020.40 1,872,127,366.78 37,016,346.38 TOTAL ASSETS 9,134,826,691.51 9,171,843,037.89 37,016,346.38 Current liabilities Short-term borrowings Customer deposits and deposits from banks Loans from other banks and other financial institutions Trading financial liabilities Derivative financial liabilities Notes payables 1,227,524,091.85 1,227,524,091.85 Account payables 2,445,262,708.10 2,445,262,708.10 Unearned revenue 1,301,873.47 1,301,873.47 Contract liabilities 568,863,419.80 568,863,419.80 Financial assets sold for repurchase Deposits from customers and interbank Receivings from vicariously traded securities Receivings from vicariously sold securities Payroll payable 239,440,390.99 239,440,390.99 Taxes payable 101,144,277.49 101,144,277.49 Other payables 143,383,890.67 143,383,890.67 Including interest payable Dividends payable Fees and commissions payable Sub-insurance accounts payable Holding liabilities for sale Current portion of non-current liabilities 10,135,444.87 10,135,444.87 Other current liabilities 72,741,689.90 72,741,689.90 Total current liabilities 4,799,662,342.27 4,809,797,787.14 10,135,444.87 Non-current liabilities Insurance contract reserves Long-term borrowings Bonds receivable Including: preferred stock Perpetual bond Leasing liability 29,378,835.07 29,378,835.07 12 Joyoung Co.,Ltd. Third Quarterly Report Item 31 December 2021 1 January 2021 Adjustment Long-term payable Long-term payroll payable Accrued liabilities Deferred income 1,570,000.00 1,570,000.00 Deferred tax liabilities 51,102,590.80 51,102,590.80 Other non-current liabilities Total non-current liabilities 52,672,590.80 82,051,425.87 29,378,835.07 Total liabilities 4,852,334,933.07 4,891,849,213.01 39,514,279.94 Shareholders’ equity Share capital 767,169,000.00 767,169,000.00 Other equity instruments Including: preferred stock Perpetual bonds Capital surplus 933,782,862.84 933,782,862.84 Less: Treasury stock Other comprehensive income 21,584,865.16 21,584,865.16 Special reserve Surplus reserve 397,820,873.71 397,820,873.71 General risk reserve Undistributed profits 2,163,403,917.39 2,160,905,983.83 -2,497,933.56 Total equity attributable to shareholders of the Company 4,283,761,519.10 4,281,263,585.54 -2,497,933.56 Minority interests -1,269,760.66 -1,269,760.66 Total shareholders’ equity 4,282,491,758.44 4,279,993,824.88 -2,497,933.56 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 9,134,826,691.51 9,171,843,037.89 37,016,346.38 Note of accounting adjustments The Ministry of Finance (MOF) revised and issued Enterprise Accounting Standard No. 21 - Leases in December 2018, which is effective from January 1, 2019 for enterprises listed both domestically and internationally and for enterprises listed outside of China that adopt IFRS or ASBE for preparing financial statements. For other enterprises that have implemented the ASBE, the standards will be effective from January 1, 2021. The Company has changed its accounting policies accordingly. 2.2 Note on Retrospective Adjustment of Comparative Data for Initial Implementation of the New Leasing Standard Commencing from 2021 □ Applicable √ Not applicable 3. Auditing Report Whether the third quarterly report was audited □ Yes √ No Joyoung Co., Ltd. Board of Directors 27 October 2021 13