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九阳股份:2022年第三季度报告(英文版)2022-10-28  

                                                                                                                 Joyoung Co., Ltd. Third Quarterly Report




Ticker: 002242                                                                           Stock Abbreviation: Joyoung




                                               Joyoung Co., Ltd.
                              Interim Report of the Third Quarter 2022



     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




                                                                                                                               1
                                                                                                               Joyoung Co., Ltd. Third Quarterly Report


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 2022 to
                                                                                        YoY Change              2022 to 30             YoY Change
                                                             30 September 2022
                                                                                                             September 2022
 Operating revenue (RMB)                                        2,214,588,864.01                   -3.23%    6,925,037,008.62                      -1.52%
 Net Profit attributable to shareholders of the
                                                                  158,189,969.70                  -25.28%      504,596,360.46                     -23.91%
 Company (RMB)
 Net profit attributable to shareholders of the
 Company before non-recurring gains and losses                    159,359,269.72                  -19.32%      458,387,462.82                     -16.12%
 (RMB)
 Net cash flows from operating activities (RMB)                       —                     —                909,813,991.63                     297.87%
 Basic earnings per share (RMB / share)                                      0.21              -27.59%                     0.66          -24.14%
 Diluted earnings per share (RMB / share)                                    0.21              -25.00%                     0.66          -23.26%
                                                                                      Increased by 0.11                         Decreased by 1.72
 Weighted average return on net assets                                     4.18%                                      12.65%
                                                                                           percent point                             percent point
                                                                30 Sep. 2022            31 Dec. 2021                         Flux
 Total assets (RMB)                                             7,337,760,383.84      8,516,380,670.95                                   -13.84%
 Net assets attributable to shareholders of the
                                                                3,693,864,123.75      4,263,662,880.72                                            -13.36%
 Company (RMB)


2. Non-recurring gain and loss items and amounts thereof

                                                                                                                                                Unit: RMB
                                                                           From 1 July 2022 to       From 1 January 2022
                                  Item                                                                                                   Note
                                                                           30 September 2022        to 30 September 2022
 Profit or loss from disposal of non-current assets (including the
                                                                                    -109,113.05               -163,745.12
 write 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                                                           Mainly local business
                                                                                   6,667,876.53             80,988,286.87
 of fixed quotas or amounts according to the nationally unified                                                               support funds
 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
                                                                                                                              Mainly due to changes
 investment income from the disposal of trading financial assets,
                                                                                -8,894,560.92               -28,753,037.92    in fair value of financial
 derivative financial assets, trading financial liabilities, derivative
                                                                                                                              products
 financial liabilities and other debt investments, excluding the
 effective hedging business related to the Company’s normal
 business operations
 Reversal of provision for impairment of receivables separately
                                                                                    842,110.63               3,389,722.99
 tested for impairment
 Other non-operating income or expenses except the above items                      263,179.05                  -9,787.28
 Less: Impact of income taxes                                                       -52,379.00               8,838,361.28
        Impact of minority interests (after tax)                                     -8,828.74                 404,180.62
 Total                                                                          -1,169,300.02               46,208,897.64                  --
Other details of other profit and loss items that meet the definition of non-recurring profit or loss

□ Applicable √ Not applicable

The Company does not have other details of gain or loss items that meet the definition of non-recurring gain or loss.

                                                                                                                                                            2
                                                                                                             Joyoung Co., Ltd. Third Quarterly Report


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

Not Applicable to the Company.


3. Changes in key accounting data and financial indicators and reasons for such changes

                                                                                                                                         Unit: RMB
Item                                       30 September 2022 31 December 2021 Flux           Notes
                                                                                             Mainly due to the decrease in the purchase of
Trading financial assets                        141,637,233.37       492,981,291.00 -71.27%
                                                                                             financial products during the period
                                                                                             Mainly due to the decrease in notes collections in the
Notes receivable                              1,020,073,199.96     1,779,656,896.81 -42.68%
                                                                                             current period
                                                                                             Mainly due to the increase in the amount of locking in
Prepaid expense                                  94,740,433.84        21,200,512.71 346.88%
                                                                                             raw material prices during the period
Inventory                                       692,622,690.80     1,047,863,740.22 -33.90% Mainly due to faster inventory turnover in the period
                                                                                             Mainly due to the completion of the industrial factory
Construction in progress                         19,184,369.47        83,792,128.99 -77.10%
                                                                                             project in the current period
                                                                                             Mainly due to amortization of right-of-use assets
Right-of-use assets                              34,131,619.40        52,234,702.94 -34.66%
                                                                                             during the period
                                                                                             Mainly due to changes in the fair value of forward
Trading financial liabilities                     4,888,596.83           419,546.39 1065.21%
                                                                                             exchange settlements
                                                                                             Mainly due to higher prepayment settlement in the
Accounts payable                              1,267,548,205.13     2,079,168,330.26 -39.04%
                                                                                             current period
                                                                                             Mainly due to bonus payment at the beginning of the
Payroll payable                                  26,065,324.11       168,514,322.91 -84.53%
                                                                                             period
                                                                                             Mainly due to payment of prior period tax in the
Tax payable                                      73,793,450.91       118,088,912.25 -37.51%
                                                                                             current period
Current portion of non-current
                                                 19,846,593.87         31,105,816.48 -36.20% Mainly due to amortization of lease liabilities in the
liabilities
                                                                                              current period
Lease liabilities                                 13,776,350.81        22,501,272.82 -38.78%
                                                                                              Mainly due to changes in fair value of investments in
Other comprehensive income                        49,230,605.58        23,727,045.39 107.49%
                                                                                              other equity instruments
                                                                                              Mainly due to the increase in minority interests as a
Minority interests                                13,871,497.52       -21,933,241.58 163.24% result of the recovery of the entire equity interest in
                                                                                              SharkNinja (China) during the period
                                           From 1 January       From 1 January
Item                                       2022 to 30           2021 to 30          YoY       Note
                                           September 2022       September 2021
                                                                                              Mainly due to the increase in foreign exchange gain
Financial expense                                -59,795,915.38       -20,735,319.66 -188.38%
                                                                                              for the period
                                                                                              Mainly due to the decrease in income from financial
Investment income                                 23,586,517.95        53,838,899.20 -56.19%
                                                                                              investments in the current period
Gains/(Losses) on changes in fair
                                                -26,006,918.70        13,058,790.16 -299.15% Mainly due to loss on fair value of trust in the period
value
                                                                                             Mainly due to the decrease in bad debts from
Credit impairment losses                          -7,807,991.01      -12,732,405.68    38.68%
                                                                                             accounts receivable during the period
                                                                                             Mainly due to the decrease in compensation income
Non-operating income                              2,888,754.87        14,731,647.50 -80.39%
                                                                                             during the period
Net cash flows from operating                                                                Mainly due to the recovery of prior period's payment
                                                909,813,991.63      -459,813,538.33 297.87%
activities                                                                                   for goods in the current period
                                                                                             Mainly due to decrease in wealth management in the
Net cash flows from investing activities        226,438,139.96        14,263,698.25 1487.51%
                                                                                             current period
                                                                                             Mainly due to the distribution of dividends and share
Net cash flows from financing activities     -1,065,405,931.27      -792,627,480.00 -34.41%
                                                                                             repurchase during the period


II. Shareholder Information

                                                                                                                                                       3
                                                                                                        Joyoung Co., Ltd. Third Quarterly Report


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 the end                      Total number of preferred shareholders with resumed
                                                              47,436                                                                      0
 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 shares
                                     Nature of         Shareholding
      Name of shareholder                                               held at the          restricted
                                    shareholder         percentage                                                 Status          Number
                                                                        period-end          shares held
                                  Domestic non-
 Shanghai Lihong Enterprise
                                  state-owned                50.13%        384,523,746                       Pledged              307,618,897
 Management Limited
                                  corporation
 BILTING DEVELOPMENTS             Foreign
                                                             16.94%        129,924,090                       Pledged              103,939,172
 LIMITED                          corporation
 Hong Kong Securities Clearing    Foreign
                                                              5.34%         40,988,268
 Co., Ltd.                        corporation
                                  State-owned
 Central Huijin Investment Ltd.                               1.46%         11,201,233
                                  corporation
 China Universal Asset
 Management Co.,Ltd - Social      Others                      0.98%          7,493,610
 Security Fund 423 Portfolio
 Basic Pension Insurance Fund
                                  Others                      0.91%          7,001,435
 Portfolio No. 1001
 Joyoung Co., Ltd.- the First
 Phase Employee Stock             Others                      0.78%          5,980,000
 Purchase Plan
 Agricultural Bank of China-
 Caitong Securities Asset
 Management Consumer
                                  Others                      0.30%          2,267,642
 Upgrades One-Year Holding
 Hybrid Securities Investment
 Fund
 National Social Security Fund
                                  Others                      0.25%          1,940,292
 101 Portfolio
                                  State-owned
 Guosen Securities Co., Ltd.                                  0.24%          1,856,478
                                  corporation
                                                   Top 10 non-restricted common shareholders
                                                                          Number of non-restricted shares              Type of shares
                        Name of shareholder
                                                                                      held                    Type of shares        Number
                                                                                                             RMB common
 Shanghai Lihong Enterprise Management Limited                                                384,523,746                         384,523,746
                                                                                                             stock
                                                                                                             RMB common
 BILTING DEVELOPMENTS LIMITED                                                                 129,924,090                         129,924,090
                                                                                                             stock
                                                                                                             RMB common
 Hong Kong Securities Clearing Co., Ltd.                                                       40,988,268                          40,988,268
                                                                                                             stock
                                                                                                             RMB common
 Central Huijin Investment Ltd.                                                                11,201,233                          11,201,233
                                                                                                             stock
 China Universal Asset Management Co.,Ltd - Social Security Fund                                             RMB common
                                                                                                7,493,610                            7,493,610
 423 Portfolio                                                                                               stock
                                                                                                             RMB common
 Basic Pension Insurance Fund Portfolio No. 1001                                                7,001,435                            7,001,435
                                                                                                             stock
                                                                                                             RMB common
 Joyoung Co., Ltd.- the First Phase Employee Stock Purchase Plan                                5,980,000                            5,980,000
                                                                                                             stock
 Agricultural Bank of China-Caitong Securities Asset Management
                                                                                                             RMB common
 Consumer Upgrades One-Year Holding Hybrid Securities                                           2,267,642                           2,267,642
                                                                                                             stock
 Investment Fund
 National Social Security Fund 101 Portfolio                                                    1,940,292    RMB common             1,940,292

                                                                                                                                                 4
                                                                                                             Joyoung Co., Ltd. Third Quarterly Report


                                                                                                                  stock
                                                                                                                  RMB common
 Guosen Securities Co., Ltd.                                                                         1,856,478                           1,856,478
                                                                                                                  stock
                                                                                 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

 Related or acting-in-concert parties among shareholders above             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
                                                                           N/A
 margin trading (if any)
                                                                           The number of common shares held in the repurchase special securities
 Explanation on the existence of repurchase special accounts among
                                                                           account of Joyoung at the end of the reporting period was 12,000,000
 the top 10 shareholders (if any)
                                                                           shares, representing 1.56% of the total share capital of the Company.


2.Total Number of Preferred Shareholders and TOP 10 Preferred Shareholders and Their Shareholdings

□ Applicable √ Not applicable

III. Other Significant Events

1. Equity distribution
      On August 28, 2022, the Company's Fifth Seventeenth Board of Directors considered and approved the profit distribution proposal for the
half-year of 2022 as follows: based on the total share capital of 767,017,000 shares as of August 30, 2022, less 756,217,000 shares held in the
Company's special securities account for repurchase of 10,800,000 shares, a cash dividend of RMB 5.0 (including tax) per 10 shares will be
distributed to all shareholders. From the announcement date of disclosure to the implementation of the profit distribution, if the share capital of the
Company changes due to share repurchase, exercise of share incentive, repurchase of shares in the special account for employee stock ownership
plan and all or part of the actual grant, the Company intends to implement and maintain the distribution ratio based on the changed share capital
and adjust the total amount of distribution accordingly. On September 28, 2022, the first extraordinary general meeting of the Company in 2022
considered and approved the above proposal.
2. Progress of implementation of share repurchase
      The Thirteenth Meeting of the Fifth Session of the Board of Directors of the Company and the Second Extraordinary General Meeting of
Shareholders in 2021 considered and approved the "Program on the Repurchase of Part of the Shares of the Public" and disclosed the "Report on
the Repurchase of Shares" on November 27, 2021, in which the Company intends to use its own funds not exceeding RMB 360 million to
repurchase part of the shares of the public (A shares) of the Company by way of centralized competitive trading at a repurchase price not The
repurchase price will not exceed RMB 30 yuan per share, and the repurchased shares are expected to be not less than (including) 6 million shares
and not more than (including) 12 million shares, accounting for 0.78%-1.56% of the total share capital of the company, and the repurchased shares
will be used to implement the share incentive plan or employee stock ownership plan, and the period of repurchased shares will not exceed 12
months from the date of approval by the shareholders' meeting. For details, please refer to the relevant announcements on Juchao Information
Website (http://www.cninfo.com.cn) and the "Report on Share Repurchase" (Announcement No. 2021-051) on Securities Times and China
Securities Journal.
      The Company's 2021 Annual General Meeting of Shareholders held on April 22, 2022 considered and approved the Proposal on the

                                                                                                                                                     5
                                                                                                          Joyoung Co., Ltd. Third Quarterly Report


Distribution of Profit for the Year 2021 and disclosed the Announcement on the Implementation of the Distribution of Equity for the Year 2021 on
April 29, 2022. According to the Company's Report on Share Repurchase, the maximum price of the Company's share repurchase will be adjusted
from no more than RMB 30 per share to RMB 29 per share. Based on the upper limit of the repurchase quantity of 12 million shares, the
repurchase amount is expected to be approximately RMB 350 million; based on the lower limit of the repurchase quantity of 6 million shares, the
repurchase amount is expected to be approximately RMB 170 million, with the specific number of repurchased shares subject to the actual number
of shares repurchased at the expiration of the repurchase period. Other contents remain unchanged. For details, please refer to the Announcement
on Adjustment of the Upper Limit of the Repurchase Price(Announcement No.2022-032) published by the Company on Securities Times, China
Securities Journal and Juchao Information Website (http://www.cninfo.com.cn) on June 1, 2022.
      The Company's 2021 Annual General Meeting of Shareholders held on April 22, 2022 considered and approved the Proposal on the
Distribution of Profit for the Year 2021 and disclosed the Announcement on the Implementation of the Distribution of Equity for the Year 2021 on
April 29, 2022. According to the Company's Report on Share Repurchase, the maximum price of the Company's share repurchase will be adjusted
from no more than RMB 30 per share to RMB 29 per share. Based on the upper limit of the repurchase quantity of 12 million shares, the
repurchase amount is expected to be approximately RMB 350 million; based on the lower limit of the repurchase quantity of 6 million shares, the
repurchase amount is expected to be approximately RMB 170 million, with the specific number of repurchased shares subject to the actual number
of shares repurchased at the expiration of the repurchase period. Other contents remain unchanged. For details, please refer to the Announcement
on Adjustment of the Upper Limit of the Repurchase Price(Announcement No.2022-032) published by the Company on Securities Times, China
Securities Journal and Juchao Information Website (http://www.cninfo.com.cn) on June 1, 2022. As of September 13, 2022, the number of shares
repurchased by the Company reached the upper limit and the program has been implemented. The Company repurchased a total of 12,000,000
shares by centralized competitive bidding through the special securities account for share repurchase, accounting for 1.56% of the Company's total
share capital as of the implemented date, with the highest transaction price of RMB 19.65 per share and the lowest transaction price of RMB 14.68
per share, and the total amount paid was RMB 204,080,639.52 (excluding transaction fees). The repurchase was in compliance with the relevant
laws, regulations, and regulatory documents and was in line with the established repurchase program of the Company.
3. Progress in the implementation of the Employee Stock Purchase Plan
      The Company held the Fourteenth Meeting of the Fifth Session of the Board of Directors and the Thirteenth Meeting of the Fifth Session of
the Supervisory Committee on March 28, 2022 to consider and adopt the “Proposal on the First Phase Employee Stock Purchase Plan (Draft) of
Joyoung and its summary” and other related proposals. The 2021 Annual General Meeting was held on April 22, 2022, at which the “Proposal on
the First Phase Employee Stock Purchase Plan of Joyoung (Draft Revision) and its summary" and other related proposals were considered and
approved. For details, please refer to the relevant announcements of the Company published on the Securities Times, China Securities Journal and
Juchao Information Website (http://www.cninfo.com.cn) on 30 March 2022, 2 April 2022 and 23 April 2022.
      As at 30 September 2022, the Phase I Employee Stock Purchase Plan of the Company had purchased a total of 5,980,000 shares of the
Company's stock in the secondary market by way of centralized competitive bidding transactions, representing 0.78% of the total share capital of
the Company, with a total transaction amount of RMB89,798,174.70 (excluding transaction costs).
      As at 18 October 2022, the Phase I Employee Stock Purchase Plan of the Company had completed the purchase of all shares and had
bought a total of 8,000,000 shares of the Company in the secondary market by way of centralized competitive bidding transactions, representing
1.04% of the total share capital of the Company, for a total transaction amount of RMB121,068,322.09 (excluding transaction costs).




                                                                                                                                                6
                                                                           Joyoung Co., Ltd. Third Quarterly Report


IV. Quarterly Financial Statements

1. Financial Statements

1.1 Consolidated Balance Sheet

Prepared by: Joyoung Co., Ltd.
                                                                                                     Unit: RMB
                                     Item              30 September 2022                  1 January 2022
 Current assets:
    Cash at bank and on hand                                  2,118,574,283.32                  1,986,843,911.48
          Deposit reservation for balance
          Lending funds
          Trading financial expense                             141,637,233.37                    492,981,291.00
          Derivative financial assets
          Notes receivable                                    1,020,073,199.96                  1,779,656,896.81
          Accounts receivable                                   657,469,318.95                    590,075,982.97
          Receivables financing                                 449,508,028.86                    435,489,591.31
          Prepaid expense                                        94,740,433.84                     21,200,512.71
          Premium receivable
          Reinsurance accounts receivable
          Provision of cession receivable
          Other receivables                                      28,085,328.96                     30,856,543.13
                 Including: Interest receivable
                          Dividend receivable
          Redemptory monetary capital for sale
          Inventories                                           692,622,690.80                  1,047,863,740.22
          Contract assets
          Holding assets for sale
          Current portion of non-current liabilities
          Other current assets                                  125,610,353.75                    137,330,241.41
 Total current assets                                         5,328,320,871.81                  6,522,298,711.04
 Non-current assets:
          Issuance of loans and advances
          Equity expense
          Other equity investments
          Long-term receivables                                  16,930,350.00                     18,630,000.00
          Long-term equity investments                          202,575,818.15                    181,300,306.48
          Investments in other equity instruments               310,786,464.25                    285,142,540.99
          Other non-current financial assets                    441,569,297.80                    410,605,458.51
          Investment properties                                 107,187,408.40                    114,562,354.36
          Fixed assets                                          628,890,764.93                    576,556,389.64
          Construction in progress                               19,184,369.47                     83,792,128.99
          Productive biological asset
          Oil and gas assets
          Right-of-use assets                                    34,131,619.40                     52,234,702.94
          Intangible assets                                     121,668,799.31                    123,086,998.77
          Development expenditures
          Goodwill
          Long-term prepaid expenses                              1,656,520.32                      2,161,827.36
          Deferred tax assets                                    59,858,100.00                     81,009,251.87
          Other non-current assets                               65,000,000.00                     65,000,000.00
 Total non-current assets                                     2,009,439,512.03                  1,994,081,959.91
 TOTAL ASSETS                                                 7,337,760,383.84                  8,516,380,670.95
 Current liabilities:


                                                                                                                   7
                                                                               Joyoung Co., Ltd. Third Quarterly Report


                                        Item               30 September 2022                  1 January 2022
         Short-term borrowings
          Loans from the central bank
           Loans from other banks
          Trading financial liabilities                               4,888,596.83                        419,546.39
          Derivative financial liability
          Notes payable                                           1,695,416,990.65                  1,349,089,944.76
         Accounts payable                                         1,267,548,205.13                  2,079,168,330.26
          Unearned revenue
          Contract liabilities                                      293,198,708.50                    246,315,608.83
          Financial assets sold for repurchase
          Deposits from customers and interbank
          Receivings from vicariously traded securities
          Receivings from vicariously sold securities
         Payroll payable                                             26,065,324.11                    168,514,322.91
         Tax payable                                                 73,793,450.91                    118,088,912.25
          Other payables                                            123,021,102.96                    154,958,690.01
              Including: Interest payable
                         Dividend payable
          Handling fees and commissions payable
          Dividend payable for reinsurance
          Holding liabilities for sale
          Current portion of non-current liabilities                 19,846,593.87                     31,105,816.48
          Other current liabilities                                  38,115,832.11                     31,025,927.59
Total current liabilities                                         3,541,894,805.07                  4,178,687,099.48
Non-current liabilities
          Reserve fund for insurance contracts
          Long-term borrowings
         Bonds payable
                 Including: Preferred stock
                          Perpetual bonds
          Lease liabilities                                          13,776,350.81                     22,501,272.82
          Long-term payables
          Long-term payroll payable
         Accrued liabilities
          Deferred income                                             8,595,338.50                     12,191,388.97
          Deferred tax liabilities                                   65,758,268.19                     61,271,270.54
          Other non-current liabilities
Total non-current liabilities                                        88,129,957.50                     95,963,932.33
Total liabilities                                                 3,630,024,762.57                  4,274,651,031.81
Shareholders’ equity
         Share capital                                              767,017,000.00                    767,017,000.00
          Other equity instruments
                 Including: preferred stock
                           Perpetual bond
          Capital surplus                                           893,529,850.53                    935,607,513.93
          Less: Treasury stock                                      293,878,814.22
          Other comprehensive income                                 49,230,605.58                     23,727,045.39
         Special reserve
         Surplus reserve                                            397,820,873.71                    397,820,873.71
          General risk reserve
          Undistributed profits                                   1,880,144,608.15                  2,139,490,447.69
Total equity attributable to shareholders of the Company          3,693,864,123.75                  4,263,662,880.72
          Minority interests                                         13,871,497.52                    -21,933,241.58
Total shareholders’ equity                                       3,707,735,621.27                  4,241,729,639.14
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                       7,337,760,383.84                  8,516,380,670.95

                                                                                                                       8
                                                                                                          Joyoung Co., Ltd. Third Quarterly Report


Legal representative: Ningning Yang              Principal in charge of accounting: Jiangang Kan      Head of accounting department: Wen Guo


1.2 CONSOLIDATED INCOME STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2022

                                                                                                                                     Unit: RMB
                                                                                         For the nine months ended    For the nine months ended
                                          Item
                                                                                            30 September 2022            30 September 2021
 Total revenue                                                                                     6,925,037,008.62             7,031,953,663.00
          Including: Operating revenue                                                             6,925,037,008.62             7,031,953,663.00
                     Interest income
                     Earned Premium
                     Handling fees and commission income
 Total operating cost                                                                              6,413,441,215.08            6,428,336,085.06
         Including: Cost of sales                                                                  4,935,158,506.72            4,927,257,842.45
                     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                                                            32,881,324.70                27,956,551.98
                     Selling and distribution expenses                                             1,019,378,838.01            1,036,712,663.47
                     General and administrative expenses                                            241,615,214.05               230,586,637.26
                     Research and development expenses                                              244,203,246.98               226,557,709.56
                     Financial income                                                                -59,795,915.38              -20,735,319.66
                           Including: Interest expenses                                               1,436,001.01                 1,506,250.07
                                      Interest income                                                31,900,532.90                26,332,788.86
         Add: Other income                                                                           81,779,980.16                76,730,424.69
               Investment income/(loss)                                                              23,586,517.95                53,838,899.20
                  Including: Investment income from associates and joint ventures                    21,275,511.67                10,764,226.72
                          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                                               -26,006,918.70               13,058,790.16
                Credit impairment losses                                                             -7,807,991.01               -12,732,405.68
                Asset impairment losses                                                              -9,417,363.71                -9,619,182.89
                Losses on disposal of assets                                                            -88,380.21                   183,434.85
 Operating profit                                                                                   573,641,638.02               725,077,538.27
          Add: Non-operating income                                                                   2,888,754.87                14,731,647.50
          Less: Non-operating expenses                                                                7,923,602.00                10,318,936.96
 Total profit                                                                                       568,606,790.89               729,490,248.81
          Less: Income tax expenses                                                                  70,519,810.73                95,219,286.13
 Net Profit                                                                                         498,086,980.16               634,270,962.68
       (1) Classified by continuity of operations
              Net profit from continuing operations                                                 498,086,980.16               634,270,962.68
              Net profit from discontinued operations

                                                                                                                                                   9
                                                                                                           Joyoung Co., Ltd. Third Quarterly Report


                                                                                          For the nine months ended    For the nine months ended
                                           Item
                                                                                             30 September 2022            30 September 2021
       (2) Classified by ownership of the equity
             Attributable to shareholders of the Company                                             504,596,360.46                 663,158,912.96
             Minority interests                                                                       -6,509,380.30                 -28,887,950.28
 Other comprehensive income, net of tax                                                               25,503,560.19                    -978,843.60
       Other comprehensive income attributable to equity owners of the Company,
                                                                                                      25,503,560.19                    -978,843.60
 net of tax
       (1) Other comprehensive income items which will not be reclassified
                                                                                                      25,643,923.26                    -119,546.60
 subsequently to profit or loss
          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                         25,643,923.26                    -119,546.60
          4) Changes in fair value of an enterprise's own credit risk
          5) Others
       (2) Other comprehensive income items which will be reclassified
                                                                                                        -140,363.07                    -859,297.00
 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                           -140,363.07                    -859,297.00
          Others
     Other comprehensive income attributable to minority shareholders, net of tax
 Total comprehensive income                                                                          523,590,540.35                 633,292,119.08
       Attributable to equity owners of the Company                                                  530,099,920.65                 662,180,069.36
       Attributable to minority interests                                                             -6,509,380.30                 -28,887,950.28
 Earnings per share:
       (1) Basic earnings per share                                                                             0.66                          0.87
       (2) Diluted earnings per share                                                                           0.66                          0.86
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: Jiangang Kan      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 30
                                    Item
                                                                                        September 2022                    September 2021
 1. Cash flows from operating activities
      Cash received from sales of goods or rendering of services                                8,467,758,355.02                7,968,153,431.84
       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


                                                                                                                                                 10
                                                                                                    Joyoung Co., Ltd. Third Quarterly Report


                                                                           For the nine months ended 30     For the nine months ended 30
                                  Item
                                                                                  September 2022                   September 2021
     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                                                        92,608,032.81                    40,000,000.00
     Cash received relating to other operating activities                                 310,871,232.42                   182,723,928.83
Sub-total of cash inflows                                                               8,871,237,620.25                 8,190,877,360.67
     Cash paid for goods and services                                                   5,651,386,813.10                 6,256,676,573.58
     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                                             562,339,589.68                   655,418,395.48
      Payments of taxes and surcharges                                                    466,365,214.13                   468,145,557.23
      Cash paid relating to other operating activities                                  1,281,332,011.71                 1,270,450,372.71
Sub-total of cash outflows                                                              7,961,423,628.62                 8,650,690,899.00
Net cash flows from operating activities                                                  909,813,991.63                  -459,813,538.33
2. Cash flows from investing activities
      Cash received from disposal of investments                                           10,028,500.00                    10,851,423.00
      Cash received from returns on investments                                            17,624,470.20                    35,090,910.71
      Net cash received from disposal of fixed assets, intangible assets
                                                                                              550,000.00                   150,940,690.59
and other long-term assets
      Net cash received from disposal of subsidiaries and other business
units
      Cash received relating to other investing activities                               583,999,999.95                  2,186,600,000.00
Sub-total of cash inflows                                                                612,202,970.15                  2,383,483,024.30
      Cash paid to acquire fixed assets, intangible assets and other
                                                                                         108,447,830.19                     69,179,022.89
long-term assets
     Cash paid to acquire investments                                                      30,000,000.00                    23,540,303.16
     Net increase in pledged loans
     Net cash paid to acquire subsidiaries and other business units
     Cash paid relating to other investing activities                                    247,317,000.00                  2,276,500,000.00
Sub-total of cash outflows                                                               385,764,830.19                  2,369,219,326.05
Net cash flows from investing activities                                                 226,438,139.96                     14,263,698.25
3. Cash flows from financing activities
     Cash received from capital contributions                                                                               24,500,000.00
        Including: Cash received from capital contributions by minority
                                                                                                                            24,500,000.00
shareholders of subsidiaries
     Cash received from borrowings
     Cash received relating to other financing activities                                                                       25,520.00
Sub-total of cash inflows                                                                                                   24,525,520.00
     Cash repayments of borrowings
      Cash payments for interest expenses and distribution of dividends
                                                                                         764,858,200.00                    767,017,000.00
or profits
      Including: Cash payments for dividends or profit to minority
shareholders of subsidiaries
   Cash payments relating to other financing activities                                   300,547,731.27                    50,136,000.00
Sub-total of cash outflows                                                              1,065,405,931.27                   817,153,000.00
Net cash flows from financing activities                                               -1,065,405,931.27                  -792,627,480.00


                                                                                                                                         11
                                                                                              Joyoung Co., Ltd. Third Quarterly Report


                                                                     For the nine months ended 30     For the nine months ended 30
                                  Item
                                                                            September 2022                   September 2021
 4. Effect of foreign exchange rate changes on cash
                                                                                     30,257,427.61                    -3,022,527.45
 and cash equivalents
 5. Net increase in cash and cash equivalents                                       101,103,627.93                -1,241,199,847.53
     Add: Cash and cash equivalents at the beginning of the period                1,675,928,534.37                 1,713,797,184.45
 6. Cash and cash equivalents at the end of the period                            1,777,032,162.30                   472,597,336.92


2. Auditing Report

Whether the third quarterly report was audited

□ Yes √ No

                                                                                    Joyoung Co., Ltd. Board of Directors
                                                                                                             28 October 2022




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