2021 Semi-annual Report
Stock Code: 603605 Short Name: PROYA
Proya Cosmetics Co., Ltd.
2021 Semi-annual Report
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2021 Semi-annual Report
Important Note
I. The Board of Directors, Board of Supervisors, directors, supervisors and officers of the
Company warrant that the contents of the Semi-annual Report are true, accurate and
complete without any misrepresentations, misleading statements or material omissions, and
that they will be jointly and severally liable therefor.
II. All directors of the Company have attended the board meeting.
III. The Semi-annual Report has not been audited.
IV. HOU Juncheng, the person in charge of the Company, and WANG Li, the chief financial
officer and the head of the accounting organization (the person in charge of accounting)
warrant that the financial report herein is true, accurate and complete.
V. Proposals for profit distribution or reserve capitalization during the Reporting Period
adopted by the Board of Directors
There is no proposal for profit distribution or reserve capitalization during the Reporting Period.
VI. Risk disclosure on forward-looking statements
√ Applicable N/A
The future plans, development strategies and other forward-looking statements herein shall in no
event constitute the Company’s substantive commitments to its investors. The investors should keep an
eye on investment risks.
VII. Whether there is any non-operational occupation of funds by the controlling shareholders
and their affiliates
No
VIII. Whether there is any external guarantee provided in violation of the specified
decision-making procedures?
No
IX. Whether there is a majority of the directors that cannot undertake the truthfulness, accuracy
and completeness of the Semi-annual Report disclosed by the Company
No
X. Disclosure of material risks
The Company has elaborated the existing risks in this Report. For details, please refer to “(I)
Possible Risks” in “V. Other Disclosures” of “Section III Management Discussion and Analysis” herein.
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2021 Semi-annual Report
XI. Others
Applicable √ N/A
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Table of Contents
Section I Definitions ................................................................................................................................. 5
Section II Company Profile and Main Financial Indicators ...................................................................... 5
Section III Management Discussion and Analysis .................................................................................... 9
Section IV Corporate Governance .......................................................................................................... 21
Section V Environmental and Social Responsibilities ............................................................................ 23
Section VI Important Events ................................................................................................................... 24
Section VII Share Changes and Shareholders ......................................................................................... 49
Section VIII Preferred Stock ................................................................................................................... 54
Section IX Bonds .................................................................................................................................... 54
Section X Financial Report ..................................................................................................................... 55
Financial statements signed and sealed by the legal representative, the chief financial
officer and the head of the accounting organization
Documents for
Originals of all documents and announcements concerning the Company publicly
reference
disclosed in newspapers designated by the CSRC during the Reporting Period
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Section I Definitions
In this Report, unless the context otherwise requires, the following terms shall be defined as below:
Definitions of frequently-used terms
PROYA Co., Ltd., PROYA Co., the means Proya Cosmetics Co., Ltd.
Company, or We
CSRC means China Securities Regulatory Commission
SSE means Shanghai Stock Exchange
Articles of Association means Articles of Association of Proya Cosmetics Co.,
Ltd.
RMB/RMB0,000 means Renminbi Yuan/Renminbi 10,000 Yuan
Section II Company Profile and Main Financial Indicators
I. Company Information
Chinese name 珀莱雅化妆品股份有限公司
Short name in Chinese 珀莱雅
English name Proya Cosmetics Co.,Ltd.
Short name in English Proya
Legal representative HOU Juncheng
II. Contact Person and Contact Information
Secretary of the Board Representative of Security Affairs
Name ZHANG Yefeng WANG Xiaoyan
Address 9/F, Proya Building, No. 588 Xixi 9/F, Proya Building, No. 588 Xixi
Road, Xihu District, Hangzhou City, Road, Xihu District, Hangzhou City,
Zhejiang Province Zhejiang Province
Telephone 0571-87352850 0571-87352850
Fax 0571-87352813 0571-87352813
E-mail proyazq@proya.com proyazq@proya.com
III. Basic Information Change
Registered address No. 588 Xixi Road, Liuxia Street, Xihu District, Hangzhou City,
Zhejiang Province
Historical changes of the For details, see the Announcement on the Amendment of the Articles of
registered address Association and the Registration of Industrial and Commercial
Change (Announcement No.: 2019-008) disclosed by the Company on
the designated media for information disclosure on February 27, 2019
Office address Proya Building, No. 588 Xixi Road, Xihu District, Hangzhou City,
Zhejiang Province
Postal code of the office address 310023
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Website http://www.proya-group.com
E-mail proyazq@proya.com
Query index of changes during N/A
the Reporting Period
IV. Information Disclosure and Location Change
Selected newspapers for Shanghai Securities News and Securities Times
information disclosure
Website for publication of the http://www.sse.com.cn
Semi-annual Report
The Company’s Semi-annual Board Office of Proya Building, No. 588 Xixi Road, Xihu District,
Report is available at Hangzhou City, Zhejiang Province
Query index of changes during the N/A
Reporting Period
V. Company Stock Overview
Stock Type Stock Exchange Stock Abbreviation Stock Code Stock Abbreviation
before Change
A Share Shanghai Stock Proya 603605 None
Exchange
VI. Other Relevant Information
Applicable √ N/A
VII. Main Accounting Data and Financial Indicators of the Company
(I) Main Accounting Data
Unit: Yuan Currency: RMB
YOY increase or
The Reporting Same period of decrease in the
Main accounting data Period prior year Reporting Period
(Jan. - Jun.) (%)
Operating income 1,917,718,497.60 1,384,323,848.88 38.53
Net profit attributable to shareholders of 226,101,313.86 178,767,020.76 26.48
the listed company
Net profit attributable to shareholders of 220,280,393.28 182,466,394.19 20.72
the listed company after deducting
non-recurring profits or losses
Net cash flows from operating activities 266,175,578.82 36,564,378.88 627.96
Increase or
decrease at the
end of the
Main accounting data End of the
End of prior year Reporting Period
Reporting Period
over the end of
prior year (%)
Net asset attributable to shareholders of 2,481,725,253.59 2,391,535,435.94 3.77
the listed company
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Total assets 3,377,752,471.47 3,636,882,185.29 -7.13
Net profit margin attributable to 11.79% 12.91%
shareholders of the listed company
Net profit margin attributable to 11.49% 13.18%
shareholders of the listed company after
deducting non-recurring profits or losses
(II) Main Financial Indicators
YOY increase or
The Reporting
Same period of decrease in the
Main financial indicators Period
prior year Reporting Period
(Jan. - Jun.)
(%)
Basic earnings per share (RMB/share) 1.13 0.89 26.97
Diluted earnings per share (RMB/share) 1.12 0.89 25.84
Basic earnings per share after deducting 1.10 0.91 20.88
non-recurring profits or losses
(RMB/share)
Weighted average return on equity (%) 9.10 8.51 Increase by 0.59
percentage points
Weighted average return on equity after 8.86 8.68 Increase by 0.18
deducting non-recurring profits or losses percentage points
(%)
Turnover rate of accounts receivable 16.71 15.74 6.16
(times/year)
Turnover rate of inventories (times/year) 3.37 3.12 8.01
Description of the main accounting data and financial indicators of the Company
Applicable √ N/A
VIII. Differences Between Accounting Data under Domestic and Foreign Accounting Standards
Applicable √ N/A
IX. Items and Amounts of Non-recurring Profits or Losses
√ Applicable N/A
Unit: Yuan Currency: RMB
Item of non-recurring profits or Amount Note (if applicable)
losses
Profit or loss from disposal of
-1,416.28
non-current assets
Tax relief with ultra vires
approval, or without formal
approval, or on an occasional
basis
Governmental grants included in
the current profit or loss, except
for those closely related to the
normal operation of the 9,370,319.81
Company and gained at a fixed
amount or quantity according to
certain standards based on the
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2021 Semi-annual Report
national policies
Capital occupation fees charged
to non-financial enterprises
included in the current profit or
loss
Profits from the difference in the
lower investment cost of
acquiring subsidiaries, associates
and joint ventures by the
enterprise and the fair value of
the identifiable net assets of the
investees at the time of
investment
Profit or loss on exchange of
non-monetary assets
Profit or loss from entrusting
others with investment or asset
management
Provisions for impairment of
various assets due to natural
disasters and other force majeure
events
Profit or loss on debt
restructuring
Enterprise’s reorganization fees,
such as staffing expenses and
integration fees
Profits or losses exceeding the
fair value arising from
transactions in which the
transaction price is obviously
unfair
Current net profit or loss of the
subsidiaries established by
business combination involving
enterprises under common
control from the opening of the
accounting period to the date of
consolidation
Profit or loss from contingencies
unrelated to the normal operation
of the Company
Profit or loss from changes in -3,545.22
fair value arising from the
holding of trading financial
assets, derivative financial
assets, trading financial
liabilities and derivative
financial liabilities, as well as the
investment income from disposal
of trading financial assets,
derivative financial assets,
trading financial liabilities,
derivative financial liabilities
and other debt investments,
except the effective hedging
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2021 Semi-annual Report
business related to the normal
business of the Company
Reversal of impairment
provisions of accounts
receivable and contract assets
that have been tested for
impairment separately
Profit or loss from external
entrusted loans
Profit or loss from changes in the
fair value of investment
properties subsequently
measured at fair value
Impact from one-time
adjustment of the current profit
or loss as required by tax,
accounting and other laws and
regulations on the current profit
or loss
Entrusted fee income from
entrusted operation
Other non-operating incomes
and expenses besides the above 521,323.29
items
Other profit or loss items
conforming to the definition of
non-recurring profits or losses
Affected minority interests -1,842,828.78
Affected income tax amount -2,222,932.24
Total 5,820,920.58
X. Others
Applicable √ N/A
Section III Management Discussion and Analysis
I. Description of the Company’s Industry and Primary Business during the Reporting Period
(I) Primary Business
The Company is committed to building a new domestic cosmetics industry platform, primarily
engaged in the R&D, production and sales of cosmetics products, having its main brands that include,
among others, “PROYA”, “HAPSODE”, “TIMAGE”, “INSBAHA” and “CORRECTORS”. The
Company’s own brands have covered the consumer delicate skincare products, makeup products,
high-efficacy skincare products and other beauty products fields:
1. Popular exquisite skincare products brands
（1）PROYA, focusing on sci-tech skincare products for young white-collar women, has its general
price ranging from RMB100 to RMB300, sold through all channels collaboratively both online and
offline.
（2）HAPSODE, specially customized for young skin aiming at students and young women in
lower-tire cities, has its general price ranging from RMB50 to RMB100, sold mainly through online
channels.
2. Makeup products brands
（1） TIMAGE, a new Chinese style makeup products brand, has its general price ranging from
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RMB150 to 200, sold through online channels.
（2） INSBAHA, a punk-style niche makeup products brand, has its general price ranging from
RMB50 to RMB150, sold through online channels.
3. High-efficacy skincare products brand
CORRECTORS, a high-efficacy skincare products brand, has its general price ranging from
RMB260 to RMB600, sold through online channels.
(II) Business Models
1. Sales models
Products are mainly sold through online channels, concurrently with offline channels.
Online channels are primarily operated by direct selling and distribution, of which direct selling is
carried out mainly via Tmall and JD.com, among other platforms, while expanding to some emerging
platforms such as TikTok Shop, and distribution is mainly carried out via Taobao, JD.com and Vipshop,
etc..
Offline channels are primarily operated by dealers, including cosmetics specialty stores, supermarkets
and single brand stores, etc..
2. Production/R&D models
The Company focuses on independent production, supplemented by OEM processing, and has its
own skincare products/other personal care factories and makeup products factories.
The Company mainly commits to independent R&D, supplemented by industry-university-research
cooperation, maintaining its R&D cooperation with global industry-leading raw material suppliers such
as BASF China, Ashland China and LIPOTRUE S.L. in Spain.
(III) Industry
The Company is in the industry of chemical raw materials and chemicals manufacturing
(Classification Code: C26) under the Guidelines for the Industrial Classification of Listed Companies
promulgated by CSRC; and in the industry of daily chemicals manufacturing (C268), subdivided into
cosmetics manufacturing (C2682) under the Industrial Classification for National Economic Activities
(GB/T4754-2011).
According to the National Bureau of Statistics of China, from January to June 2021, the total retail
sales of consumer goods amount to RMB21,190.4 billion, with a YOY increase of 23.0%, including
RMB191.7 billion of cosmetics, with a YOY increase of 26.6% (retail sales value from the businesses
above certain size).
Based on the analysis of various industry data, the Company has occupied a certain share in the
domestic cosmetics market.
II. Analysis of Core Competitiveness During the Reporting Period
√ Applicable N/A
The core competitiveness of the Company is mainly embodied in: creating a self driven
organization with efficient coordination among the front, middle and back offices with “product, content
and operation” as the mainline, building a consistent operation management system integrating “culture,
strategy, mechanism and talent” taking culture as the traction, strategy as the guidance, and mechanism
and talent as the two wings, so as to ensure the proper implementation of the strategic objectives.
III. Discussion and Analysis of Business
(I) Financial Analysis
1. YOY growth of operating income
The operating income was RMB1.918 billion, with a YOY increase of 38.53%
Of which: the primary operating income was RMB1.911 billion, with a YOY increase of 38.28%
and other operating income was RMB6.438 million
Primary operating income:
（1）By channel
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Increase or YOY YOY YOY
Proportion
Amount decrease in increase increase increase Proportion Proportion Proportion
of
(RMB100 2021 H1 over or or or of 2020 of 2019 of 2018
Channel 2021H1
million) the same decrease decrease decrease (%) (%) (%)
(%)
period in 2020 in 2019 in 2018
(%) (%) (%) (%)
Direct selling 10.91 135.28 79.63 88.25 90.19 57.08 42.45 28.42 19.94
Online Distribution 4.54 9.41 34.36 37.95 40.97 23.74 27.56 24.67 23.63
Sub-total 15.45 75.85 58.59 60.97 59.91 80.82 70.01 53.09 43.57
Cosmetics stores 2.68 -21.46 -19.28 4.42 7.45 14.02 22.56 33.61 42.52
Offline Other 0.99 -39.33 -32.81 26.33 59.72 5.16 7.43 13.30 13.91
Sub-total 3.67 -27.23 -23.12 9.82 16.88 19.18 29.99 46.91 56.43
Total 19.11 38.28 20.26 32.11 32.41 100.00 100.00 100.00 100.00
Note: The proportion of each sub-channel is the proportion of the main business income. The mantissa of partial totals may be inconsistent with the sum of
individual data due to rounding, the same below.
（2）By brand
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Increase or YOY YOY YOY
decrease in increase increase increase Proportion
Amount Proportion Proportion Proportion
2021 H1 or or or of
Brand (RMB100 of 2020 of 2019 of 2018
over the decrease decrease decrease 2021H1
million) (%) (%) (%)
same period in 2020 in 2019 in 2018 (%)
(%) (%) (%) (%)
PROYA 14.87 31.44 12.43 26.81 32.38 77.81 79.66 85.21 88.77
Own
Other brands 3.67 169.36 75.08 19.74 32.65 19.17 14.82 10.18 11.23
brands
Sub-total 18.54 46.24 19.11 26.02 32.41 96.98 94.48 95.39 100.00
Agent Cross-border
0.58 -49.68 44.09 - - 3.02 5.52 4.61 -
brands agent brands
Total 19.11 38.28 20.26 32.11 32.41 100.00 100.00 100.00 100.00
Note: Among which, the operating income from TIMAGE was RMB111 million.
（3）By category
Increase or YOY YOY YOY
decrease in increase increase increase Proportion
Amount Proportion Proportion Proportion
2021 H1 or or or of
Category (RMB100 of 2020 of 2019 of 2018
over the decrease decrease decrease 2021H1
million) (%) (%) (%)
same period in 2020 in 2019 in 2018 (%)
(%) (%) (%) (%)
Skincare
16.30 33.91 11.38 24.89 32.29 85.27 86.50 93.40 98.80
(including cleansing)
Make-up 2.71 97.45 181.91 482.43 42.59 14.17 12.41 5.29 1.20
Others 0.11 -61.56 0.47 - - 0.56 1.09 1.31 -
Total 19.11 38.28 20.26 32.11 32.41 100.00 100.00 100.00 100.00
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2. YOY growth in net profit
The net profit attributable to shareholders of the listed company was RMB226 million, with a YOY
increase of 26.48%
The net profit attributable to shareholders of the listed company after deducting non-recurring
profits or losses was RMB220 million, with a YOY increase of 20.72%
Indicators 2021 H1 2021 Q1 2020 2020H1 2019 2018
1. Net profit margin on sales 10.88% 11.80% 12.04% 12.55% 11.73% 12.14%
2. Gross profit margin on
63.73% 64.41% 63.55% 59.90% 63.96% 64.03%
sales
3. Sales expense ratio 42.09% 41.72% 39.90% 33.04% 39.16% 37.52%
Including: Image promotion
fee ratio
33.95% 33.06% 32.68% 24.18% 26.86% 21.19%
4. General and administrative
6.06% 5.78% 5.44% 7.24% 6.25% 7.26%
expense ratio
5. R&D expense ratio 1.64% 1.95% 1.92% 2.30% 2.39% 2.17%
6. Turnover rate of accounts
16.71 14.75 15.53 15.74 21.74 36.04
receivable (times)
7. Turnover interval of
21.54 24.41 23.18 22.87 16.56 9.99
accounts receivable (days)
8. Turnover rate of
3.37 2.92 3.50 3.12 4.12 4.04
inventories (times)
9. Turnover interval of
106.82 123.40 102.86 115.55 87.38 89.11
inventories (days)
(II) Business Analysis
1. New product strategy
During the Reporting Period, the Company upgraded the product-driven strategy and continued to
implement the “hero product strategy”.
（1）Based on the increasingly mature digital management of product lifecycle, the Double
Anti-Aging Essence and Ruby Essence were upgraded as to the composition, formula and package
design for the brand of PROYA, with a more perfect Version 2.0 formed for PROYA to further promote
the shaping of the sense of technology and youth.
（2）The hero products portfolio has been perfected by extending the categories from essences to
face and eye creams and the effect from age defying to repair, to attract users, thereby improving the per
customer transaction and repeat purchases, and enhancing the brand adherence. A series of new hero
products skincare products, such as the Ruby Face Cream, Advanced Original Repair Essence and Ruby
Eye Cream of PROYA.
（3）Further efforts have been made on improving the promotion efficiency of hero products, for
full-link optimization intervention from consumer experience, attraction and trust building to final
transaction. With a cost-effective and efficient launching model and excellent products that meet the
needs of consumers, the Company changed the customers’ feeling about PROYA from “Proya is really
different now” last year to “Proya is a brand that can represent China and compete internationally”,
whiling continuing to step into a higher level.
2. New marketing strategy
During the Reporting Period, PROYA has always put focus on the current life and state of young
people with the spirit of discovery, and encouraged consumers to be brave, courageous and optimistic from
their respective story, to convey the brand spirit of “discovering while young”. Marketing events for the
brand are as follows:
（1）In January, with “come to the new world in the first year of graduation”, PROYA kept a close
eye on the living conditions of new employees in the workplace and gave understanding, encouragement
and care to the young groups.
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（2）On the Women’s Day in March, with “prejudice rather than gender - the boundary line”,
PROYA work with China Women’s News to actively speak up for women with the brand power based
on its detailed insight into “gender bias” and deep thought about “gender equality”.
（3）In May, PROYA officially announced its cooperation with China Aerospace IP to pay tribute
to the 65th anniversary of China Aerospace by “flying from China to the universe”. The joint products
were widely loved and praised by consumers.
In the same month, on May 20, a special day to express love among lovers, PROYA launched a
discussion on love with OWSPACE and Shanghai Translation proposing “Dare to love, and dare to be
single”. The brand not only output the love proposition with emotional resonance, but also created a
warm and healing brand image.
（4）In June, PROYA launched a concentrated film clip of “paying tribute to everyone who goes to
discover”, inviting HAO Jingfang, a well-known writer, and people. cn to pay tribute to the discoverers
of each era. The short film stimulated the national pride of the audience, while conveying the “spirit of
discovery”, the core of the brand.
3. New channel strategy
Online:
（1）Tmall Flagship Store:
During the Reporting Period, we have continued the “branding + fine operation” reform by
adjusting the category structure, optimizing the product content, relying on the big data marketing
strategy, and strengthening the prominent KOL cooperation, thus greatly improving the launching
efficiency, so as to give effect to the objectives of “vast customer orders, high gross profit and mass
repurchases”, and render a sustainable and quality business development.
（2）TikTok Shop & Kwai Shop:
During the Reporting Period, we have seized the popularity of live streaming, combining self
broadcasting with talent broadcasting. Attention has been paid to the operation through self broadcasting
by improving the proportion thereof, and annual frame cooperation has been improved with high-quality
streamers covering both general streamers and non-vertical streamers, to optimize the commodity
structure and improve the gross and net profit.
（3）JD.com, Vipshop and Tmall Supermarket:
We have further optimized the platform operation, strengthened the member marketing, adjusted
the product structure, optimized the rhythm of launching expenses, and strengthened the sales of hero
products and new products.
Offline:
（1）Cosmetics stores: We have adjusted and upgraded the existing outlets, modified the product
structure, optimized the training system and improved the terminal service awareness.
（2）Supermarkets: Focusing on building department store systems such as Intime, Chongqing and
Rainbow, while expanding to other high-quality department stores, we have strengthened inventory
management, customized product portfolio suitable for supermarket channels, and enhanced BA’s
initiative.
4. New organizational strategy
（1）Organization: We have focused on the building of digital middle office by deepening the
strategy relating to hero products and popular products, and the strategy concerning precise launch with
middle office to improve ROI. The virtual project organization form was adopted with products and
launching as the mainline to create an end-to-end, efficient and self-driven process-oriented
organization.
（2）Talent: We have further promoted the talent supply chain mechanism matching with business,
to select, identify and use talents in an accurate, quick and efficient manner, thereby to gradually build a
young team with strong combat effectiveness, learning ability, self drive and entrepreneurial passion.
（3）Mechanism: By advocating the “three heights” performance culture of “high investment, high
performance and high return”, we have established a performance management system of “setting goals
and attaching importance to the process for achievement”. Around the business strategy, every effort
was made to build a diversified business incentive system covering a short term (for quarterly
performance and project incentive), a medium term (for annual additional dividend) and a long term (for
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equity incentive and partners).
Material changes in the Company’s business during the Reporting Period, as well as events that
have a significant impact on the Company’s business during such period and are expected to have
a significant impact thereon in the future
Applicable √ N/A
IV. Main Business Conditions during the Reporting Period
(I) Primary Business Analysis
1 Analysis of changes in related items in financial statements
Unit: Yuan Currency: RMB
Item Same period of prior
Current period Change ratio (%)
year
Operating income 1,917,718,497.60 1,384,323,848.88 38.53
Operating cost 695,558,289.19 555,120,455.16 25.30
Selling expense 807,204,631.76 457,414,432.20 76.47
General and administrative 116,191,173.05 100,182,355.15 15.98
expense
Financial expense -1,864,128.79 -7,374,480.76 N/A
R&D expense 31,371,344.46 31,865,144.96 -1.55
Net cash flow from operating 266,175,578.82 36,564,378.88 627.96
activities
Net cash flow from investing -190,628,459.71 104,618,006.73 -282.21
activities
Net cash flow from financing -248,631,053.62 -31,140,550.44 N/A
activities
Reasons for changes in operating income: Mainly due to the growth of operating income from
online sales.
Reasons for changes in operating cost: Mainly due to the growth of operating income driving the
corresponding growth of operating cost.
Reasons for changes in selling expense:
In the first half of 2021, the selling expense amounted to RMB807 million, accounting for 42.09%
of the operating income (33.04% in the same period of prior year), representing a YOY increase by
RMB350 million or 76.47% , mainly due to the YOY increase by RMB316 million or 94.47% in the
image publicity and promotion expense in the current period, including: 1. the YOY increase of
promotion expense for the new brands (such as TIMAGE); 2. the YOY increase of online sales and
image publicity and promotion expense.
Reasons for changes in general and administrative expense:
In the first half of 2021, the general and administrative expense amounted to RMB116 million,
accounting for 6.06% of the operating income (7.24% in the same period of prior year), representing a
YOY increase by RMB16.01 million or 15.98%, mainly due to the YOY increase in employee benefits
and labor costs.
Reasons for changes in financial expense: Mainly due to the YOY increase in exchange gains and
losses in the current period.
Reasons for changes in R&D expense:
In the first half of 2021, the R&D expense amounted to RMB31.37 million, accounting for 1.64%
of the operating income (2.30% in the same period of prior year), which was basically the same as that
in the same period of prior year. The parent company’s R&D expense ratio in the first half of 2021 was
3.76% (4.31% in the same period of prior year).
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Reasons for changes in net cash flow from operating activities:
The net cash flow from operating increased by RMB230 million on a YOY basis, mainly due to:
1. Factors relating to increase in cash: the sales receipts increased by RMB740 million YOY
(corresponding to YOY increase in sales and decrease in accounts receivable);
2. Factors relating to decrease in cash: the payment for goods increased by RMB71 million YOY,
and the cash paid for other operating activities increased by RMB378 million (mainly due to the YOY
increase in image publicity and promotion expense).
Reasons for changes in net cash flow from investing activities:
The net cash flow from investment decreased by RMB295 million on a YOY basis, mainly due to:
1. Factors relating to increase in cash: the cash paid for investing in associates and other equities
during the period had an amount of RMB31 million, with a YOY decrease by RMB35 million from
RMB67 million in the same period of prior year;
2. Factors relating to decrease in cash: the cash inflow from recovering the principal and income of
wealth management products in the same period prior year had an amount of RMB216 million; the cash
paid for acquisition of fixed assets, construction in progress and other investing activities increased
YOY during the current period.
Reasons for changes in net cash flow from financing activities:
The net cash flow from financing decreased by RMB217 million on a YOY basis, mainly due to:
1. The short-term loans received from banks decreased by RMB99 million, and the debt repayment
expenditure increased by RMB87 million YOY, with the total net cash outflow from both items
increased by RMB186 million YOY;
2. The dividend distribution and interest expenses increased by RMB31 million YOY.
2 Detailed descriptions of significant changes in business type, profit composition or profit
source of the Company in the current period
Applicable √ N/A
(II) Descriptions of significant changes in profits caused by non-primary business
Applicable √ N/A
(III) Analysis of Assets and Liabilities
√ Applicable N/A
1. Assets and liabilities
Unit: Yuan Currency: RMB
Proportion
of changes
Proportio
Proportio in the
n of
n of closing
closing
closing balance of
Closing balance balance of Closing balance
Item balance of current Description
of current period current of prior year
prior year period over
period to
to total the closing
total
assets (%) balance of
assets (%)
prior year
(%)
16 / 185
2021 Semi-annual Report
Currency funds 1,236,337,706.75 36.60 1,416,654,640.93 38.95 -12.73
Mainly due
to the
collection of
accounts
Accounts
receivable
receivable 174,316,681.46 5.16 284,878,419.58 7.83 -38.81
upon the
maturity of
credit for
some
customers
Inventories 356,282,644.43 10.55 468,641,017.75 12.89 -23.98
Contract assets 0.00 0.00 N/A
Investment 71,819,415.95 2.13 72,237,610.10 1.99 -0.58
properties
Mainly due
to : 1. see
the note
below for
details; 2.
Long-term the
equity additional
186,592,634.00 5.52 58,220,059.60 1.60 220.50
investment investment
of
RMB28.21
million
made to
Jiaxing
Woyong
Fixed assets 553,956,322.47 16.40 565,864,152.62 15.56 -2.10
Mainly due
to the
investment
in
construction
in progress
for Huzhou
expanded
Construction in production
progress 115,081,293.14 3.41 47,324,523.36 1.30 143.17 base
construction
project
(phase I)
and Longwu
R&D center
construction
project
during this
period
Right-of-use
0.00 0.00 N/A
assets
Short-term 200,000,000.00 5.92 299,280,435.09 8.23 -33.17 Mainly due
borrowings to the net
repayment
17 / 185
2021 Semi-annual Report
of bank
loans of
RMB99
million
during this
period
Contract 52,820,185.37 1.56 30,618,778.99 0.84 72.51 Mainly due to
liabilities the increase of
more than
RMB18
million in
receipts in
advance
Long-term
0.00 0.00 N/A
borrowings
Lease liabilities 0.00 0.00 N/A
Goodwill See the note
0.00 0.00 31,034,161.20 0.85 -100.00 below for
details
Other Mainly due
non-current to the
assets payment for
purchasing
the plot in
Longwu,
Hangzhou
at the
beginning
of the year;
the closing
procedures
for the plot
and the
properties
thereon had
5,731,163.01 0.17 87,322,780.03 2.40 -93.44 been
completed
with
obtainment
of relevant
title
certificate
during this
period,
which was
included
into the
intangible
assets and
construction
in progress
accordingly
Accounts Mainly due
payable to the
maturity of
346,738,059.11 10.27 515,832,031.27 14.18 -32.78
the accounts
payable in
this period
18 / 185
2021 Semi-annual Report
Other current Mainly due
liabilities to the
increase of
advance
payment for
goods in
contract
2,149,196.85 0.06 1,439,262.02 0.04 49.33
liabilities
and the
correspondi
ng increase
of
pending
output VAT
Mainly due
to the
Estimated estimated
6,052,681.88 0.18 10,190,099.22 0.28 -40.60
liabilities decrease in
returns sales
revenue
Note:
In April 2021, the Company entered into a capital increase and share exchange agreement with
Zhuhai Healthlong Biotechnology Co., Ltd., among other parties, under which the Company increased
its capital to Zhuhai Healthlong Biotechnology Co., Ltd. with its 52% equity in Shanghai Healthlong
Biochemical Technology Co., Ltd.. After the capital increase and share exchange, Shanghai Healthlong
Biochemical Technology Co., Ltd., the former majority-owned subsidiary of the Company, became a
wholly-owned subsidiary of Zhuhai Healthlong Biotechnology Co., Ltd. and was excluded from the
consolidation scope of the Company. The Company holds 10% equity of, and appoints a director to,
Zhuhai Healthlong Biotechnology Co., Ltd..
For the above reasons, the Company’s investment in Zhuhai Healthlong Biotechnology Co., Ltd.
was accounted for as “long-term equity investment”, which had a carrying amount of RMB97.19
million by the end of June. The originally recognized goodwill was reduced simultaneously (that is, the
part by which the investment made by the Company in Shanghai Healthlong in the early stage exceeded
the fair value of identifiable net assets calculated according to the shareholding ratio).
Other descriptions
None
2. Overseas assets
Applicable √ N/A
3. Restrictions on major assets by the end of the Reporting Period
√ Applicable N/A
Unit: Yuan
Item Closing carrying amount Reasons for restriction
Transformer margin, letter of
Cash and bank balances 7,967,481.72
credit deposit, Tmall deposit and
19 / 185
2021 Semi-annual Report
Alipay deposit, etc.
Total 7,967,481.72
4. Other descriptions
Applicable √ N/A
(IV) Investment Analysis
1. Overall analysis of external equity investment
√Applicable N/A
Unit: Yuan
Closing balance Opening balance
Gross Provision Gross Provision
Item Carrying Carrying
carrying for carrying for
amount amount
amount impairment amount impairment
Investment in
183,291,583.06 183,291,583.06 54,913,429.03 54,913,429.03
associates
Investment in
3,301,050.94 3,301,050.94 3,306,630.57 3,306,630.57
joint ventures
Total 186,592,634.00 186,592,634.00 58,220,059.60 58,220,059.60
See “VII. 17 Long-term equity investment” in “Section X Financial Report” hereof for details.
(1) Significant equity investment
Applicable √ N/A
(2) Significant non-equity investment
Applicable √ N/A
(3) Financial assets measured at fair value
Applicable √ N/A
(V) Disposal of major assets and equities
Applicable √ N/A
(VI) Analysis of major majority-owned and non-majority-owned companies
√ Applicable N/A
Unit: RMB0’000 Currency: RMB
Majority-
Major
Register owned or
Business products
Primary subsidiary ed Total assets Net assets Net profit non-majo
nature or
capital rity-owne
services
d
Zhejiang Meili Valley Cosmetics Majority-
Cosmetics 1,000.00 34,208.50 17,051.83 7,470.13
E-commerce Co., Ltd. sales owned
Hangzhou Proya Trade Cosmetics Majority-
Cosmetics 5,000.00 45,346.96 9,794.36 -3,271.18
Co., Ltd. sales owned
Hapsode (Hangzhou) Cosmetics Majority-
Cosmetics 5,000.00 11,830.14 -20,560.50 -711.84
Cosmetics Co., Ltd. sales owned
20 / 185
2021 Semi-annual Report
(VII) Structured entities controlled by the Company
Applicable √ N/A
V. Other Disclosures
(I) Possible Risks
√ Applicable N/A
1. Industry competition risk
(1) Given the intensified competition among brands in the industry, the Company’s brand upgrading
strategy and hero product strategy may fail to reach the expected goal;
(2) Given the intensified competition for marketing investment, the control of digital and refined
investment costs may fail to reach the expected goal.
2. Project incubation risk
(1) Risk of new brand incubation: the performance may fail to reach the expected goal after heavy
marketing investment;
(2) Risk of new category development: as the operation modes for different categories differ greatly,
the team may be unable to meet the requirements and the performance may fail to meet the
expected goal.
3. The COVID-19 outbreak may have an uncertain impact on the operation.
(II) Other Disclosures
Applicable √ N/A
Section IV Corporate Governance
I. Brief Introduction to the General Meeting of Shareholders
Query index of the
Disclosure
Date of designated website
Session date of Resolution
convening where the resolution
resolution
is published
The meeting reviewed and
approved the Company’s 2020
Annual Report and its Summary,
the Company’s 2020 Annual Profit
Distribution Plan and other
Announcement No. proposals. For details, please see
2020 annual
May 13, 2021-029 on the May 14, the Announcement on Resolution of
general
2021 website of SSE 2021 the Company’s 2020 Annual
meeting
(www.sse. com. cn) General Meeting (Announcement
No.: 2021-029) disclosed by the
Company on the website of SSE
(http://www.sse.com.cn) and
relevant information disclosure
media on May 14, 2021.
Extraordinary general meetings of shareholders required by preferred shareholders with voting
rights
Applicable √ N/A
21 / 185
2021 Semi-annual Report
Description of general meetings of shareholders
Applicable √ N/A
II. Changes in directors, supervisors and officers of the Company
√ Applicable N/A
Name Position Changes
CHEN Yan Independent director Left office
MA Dongming Independent director Elected
Description of changes in directors, supervisors and officers of the Company
Applicable √ N/A
III. Profit Distribution or Capital Reserve Capitalization Plans
Semi-annual profit distribution plans and capital reserve capitalization plans
Whether there is any profit distribution or capital No
reserve capitalization
Number of bonus shares distributed per 10 shares 0
(share)
Amount of dividends paid per 10 shares (RMB) 0
(including tax)
Number of shares converted from capital reserves 0
per 10 shares (share)
Description of profit distribution or capital reserve capitalization plans
N/A
IV. The Company’s equity incentive plans, employee stock ownership plans or other employee
incentives and their impact
(I) Relevant equity incentives that have been disclosed in the interim announcement without
progress or change in the follow-up implementation
Applicable √ N/A
(II) Incentives not disclosed in the interim announcement or with follow-up progress
Equity incentives
Applicable √ N/A
Other descriptions
Applicable √ N/A
Employee stock ownership plans
Applicable √ N/A
Other incentives
Applicable √ N/A
22 / 185
2021 Semi-annual Report
Section V Environmental and Social Responsibilities
I. Environmental Information
(I) Description on environmental protection of the company and its primary subsidiaries which
are in high pollution industries regulated by the environmental protection authority
Applicable √ N/A
(II) Description on environmental protection of the company not in high pollution industries
Applicable √ N/A
(III) Description of follow-up progress or changes in the contents of the environmental information
disclosed during the Reporting Period
Applicable √ N/A
(IV) Relevant information conducive to protecting ecology, preventing pollution and fulfilling
environmental responsibilities
√ Applicable N/A
1. During the Reporting Period, the Company actively responded to the call of the nation by conducting
macro management of solid waste. Having applied to register in the National Solid Waste and Chemical
Management Information System Platform, Huzhou Plant made an annual pre-declaration of the amount
of hazardous waste generated, conducted a public bidding for hazardous waste disposal units through the
platform, and applied for treatment of hazardous waste on the platform, being able to track data of solid
waste and anticipate risks thereof in the whole process.
2. During the Reporting Period, Huzhou Plant continued to carry out reasonable energy conservation and
emission reduction as suggested, and to practice as a resource-saving and environment-friendly green
factory.
(V) Measures taken to reduce carbon emissions during the Reporting Period and the effect
thereof
Applicable √ N/A
II. Efforts to Consolidate and Expand the Achievements in Poverty Alleviation and Rural
Revitalization
Applicable √ N/A
23 / 185
2021 Semi-annual Report
Section VI Important Events
I. Performance of Commitments
(I) Commitments of the Company and Its De Facto Controllers, Shareholders, Related Parties and Acquirers, etc., During or as of the Reporting Period
√ Applicable N/A
Next step in
Whether Reasons for
case of
it is failure of
Is there a failure of
Date and performed timely
Background Type Promiser Content term for timely
Term timely performance
performance performance
and (if
(if
strictly applicable)
applicable)
24 / 185
2021 Semi-annual Report
Restricted Controlling (1) Within 36 months from the date of listing Made on: Yes Yes N/A N/A
sale of shareholders of the Company’s shares, I will not transfer or November
shares and de facto entrust others with management of the shares 15, 2017;
controllers: in the Company directly or indirectly held by Term:
HOU me, nor will I have such shares repurchased November
Juncheng by the Company; (2) If the closing price of 15, 2017
and FANG the Company’s shares has been lower than to
Aiqin (a the offering price for 20 consecutive trading November
couple) days within 6 months after the listing of the 14, 2020
Company, or the closing price at the end of 6
months after the listing is lower than the
offering price, the lock-up period of the
Company’s shares held by me shall be
automatically extended for 6 months; (3) If
the Company’s shares held by me are reduced
within two years after the expiration of the
Commitments lock-up period, the reduction price shall not
on the IPO be lower than the offering price; (4) The
lock-up period of the Company’s shares held
by me/us shall be automatically extended for
6 months in case I/we violate the above
commitments on share locking.
Restricted Director and (1) Within 36 months from the date of listing Made on: Yes Yes N/A N/A
sale of general of the Company’s shares, I will not transfer or November
shares manager: entrust others with management of the shares 15, 2017;
FANG in the Company directly or indirectly held by Term:
Yuyou me, nor will I have such shares repurchased November
by the Company; (2) If the closing price of 15, 2017
the Company’s shares has been lower than to
the offering price for 20 consecutive trading November
days within 6 months after the listing of the 14, 2020
Company, or the closing price at the end of 6
months after the listing is lower than the
offering price, the lock-up period of the
Company’s shares held by me shall be
25 / 185
2021 Semi-annual Report
automatically extended for 6 months; (3) If
the Company’s shares held by me are reduced
within two years after the expiration of the
lock-up period, the reduction price shall not
be lower than the offering price; (4) The
lock-up period of the Company’s shares held
by me/us shall be automatically extended for
6 months in case I/we violate the above
commitments on share locking.
Restricted 12 natural (1) Within 36 months from the date of listing Made on: Yes Yes N/A N/A
sale of person of the Company’s shares, I will not transfer or November
shares shareholders: entrust others with management of the shares 15, 2017;
LI Xiaolin, in the Company directly or indirectly held by Term:
XU Junqing, me, nor will I have such shares repurchased November
FANG by the Company; (2) If the closing price of 15, 2017
Aifen, YE the Company’s shares has been lower than to
Caifu, LI the offering price for 20 consecutive trading November
Jianqing, days within 6 months after the listing of the 14, 2020
CHEN Company, or the closing price at the end of 6
Dongfang, months after the listing is lower than the
LI Wenqing, offering price, the lock-up period of the
XU Company’s shares held by me shall be
Dongkui, automatically extended for 6 months; (3) If
BAO the Company’s shares held by me are reduced
Qingfang, within two years after the expiration of the
FANG lock-up period, the reduction price shall not
Jiaqin, be lower than the offering price; (4) The
FANG lock-up period of the Company’s shares held
Shanming, by me/us shall be automatically extended for
YE Hong 6 months in case I/we violate the above
commitments on share locking.
26 / 185
2021 Semi-annual Report
Restricted Directors (1) During my tenure as a director/officer of Made on: No Yes N/A N/A
sale of and officers: the Company, the shares transferred each year November
shares HOU shall not exceed 25% of the total shares in the 15, 2017;
Juncheng, Company held directly or indirectly by me; Term:
FANG Within six months after my leaving office, I Indefinite
Yuyou, will not transfer the shares of the Company term from
CAO directly or indirectly held by me; (2) If the November
Liangguo Company’s shares held by me are reduced 15, 2017
within two years after the expiration of the
lock-up period, the reduction price shall not
be lower than the offering price; If the closing
price of the Company’s shares has been lower
than the offering price for 20 consecutive
trading days within 6 months after the listing
of the Company, or the closing price at the
end of 6 months after the listing is lower than
the offering price, the lock-up period of the
Company’s shares held by me shall be
automatically extended for 6 months, which
shall not be terminated due to my job change,
resignation, etc.; (3) The lock-up period of
the Company’s shares held by me/us shall be
automatically extended for 6 months in case
I/we violate the above commitments on share
locking.
Restricted Officers: (1) Within 12 months from the date of listing Made on: No Yes N/A N/A
sale of ZHANG of the Company’s shares, I will not transfer or November
shares Yefeng and entrust others with management of the shares 15, 2017;
ZHANG in the Company directly or indirectly held by Term:
Minhua me, nor will I have such shares repurchased Indefinite
by the Company; (2) During my tenure as an term from
officer of the Company, the shares transferred November
each year shall not exceed 25% of the total 15, 2017
shares in the Company held directly or
indirectly by me; Within six months after my
27 / 185
2021 Semi-annual Report
leaving office, I will not transfer the shares of
the Company directly or indirectly held by
me; (3) If the Company’s shares held by me
are reduced within two years after the
expiration of the lock-up period, the reduction
price shall not be lower than the offering
price; If the closing price of the Company’s
shares has been lower than the offering price
for 20 consecutive trading days within 6
months after the listing of the Company, or
the closing price at the end of 6 months after
the listing is lower than the offering price, the
lock-up period of the Company’s shares held
by me shall be automatically extended for 6
months, which shall not be terminated due to
my job change, resignation, etc.; (4) The
lock-up period of the Company’s shares held
by me/us shall be automatically extended for
6 months in case I/we violate the above
commitments on share locking.
Restricted Officer: JIN (1) Within 12 months from the date of listing Made on: No Yes N/A N/A
sale of Yanhua of the Company’s shares, I will not transfer or April 16,
shares entrust others with management of the shares 2018;
in the Company directly or indirectly held by Term:
me, nor will I have such shares repurchased Indefinite
by the Company; (2) During my tenure as an term from
officer of the Company, the shares transferred April 16,
each year shall not exceed 25% of the total 2018
shares in the Company held directly or
indirectly by me; Within six months after my
leaving office, I will not transfer the shares of
the Company directly or indirectly held by
me; (3) If the Company’s shares held by me
are reduced within two years after the
expiration of the lock-up period, the reduction
28 / 185
2021 Semi-annual Report
price shall not be lower than the offering
price; If the closing price of the Company’s
shares has been lower than the offering price
for 20 consecutive trading days within 6
months after the listing of the Company, or
the closing price at the end of 6 months after
the listing is lower than the offering price, the
lock-up period of the Company’s shares held
by me shall be automatically extended for 6
months, which shall not be terminated due to
my job change, resignation, etc.; (4) The
lock-up period of the Company’s shares held
by me/us shall be automatically extended for
6 months in case I/we violate the above
commitments on share locking.
Restricted Officer: (1) Within 12 months from the date of listing Made on: No Yes N/A N/A
sale of WANG Li of the Company’s shares, I will not transfer or September
shares entrust others with management of the shares 3, 2018;
in the Company directly or indirectly held by Term:
me, nor will I have such shares repurchased Indefinite
by the Company; (2) During my tenure as an term from
officer of the Company, the shares transferred September
each year shall not exceed 25% of the total 3, 2018
shares in the Company held directly or
indirectly by me; Within six months after my
leaving office, I will not transfer the shares of
the Company directly or indirectly held by
me; (3) If the Company’s shares held by me
are reduced within two years after the
expiration of the lock-up period, the reduction
price shall not be lower than the offering
price; If the closing price of the Company’s
shares has been lower than the offering price
for 20 consecutive trading days within 6
months after the listing of the Company, or
29 / 185
2021 Semi-annual Report
the closing price at the end of 6 months after
the listing is lower than the offering price, the
lock-up period of the Company’s shares held
by me shall be automatically extended for 6
months, which shall not be terminated due to
my job change, resignation, etc.; (4) The
lock-up period of the Company’s shares held
by me/us shall be automatically extended for
6 months in case I/we violate the above
commitments on share locking.
Restricted Controlling (1) The number of shares in the Issuer Made on: No Yes N/A N/A
sale of shareholders directly or indirectly reduced by me within 24 November
shares and de facto months after the expiration of the lock-up 15, 2017;
controllers: period shall not exceed 6% of the total Term:
HOU number of shares therein before this Offering; Indefinite
Juncheng (2) My reduction of shareholding in the term from
and FANG Company shall be conducted through November
Aiqin centralized bidding at a stock exchange, block 15, 2017
trading or transfer by agreement, among other
ways, in compliance with the provisions of
relevant laws, regulations and rules; (3) I will,
before reducing the Company’s shares, make
an announcement three trading days in
advance, and perform the obligation of
information disclosure in a timely and
accurate manner pursuant to the rules of the
stock exchange, unless my shareholding in
the Company falls below 5%; (4) I will, in
case of failing to fulfill the above
commitments on shareholding reduction,
publicly explain the specific reasons for my
non-fulfillment at the Company’s general
meeting of shareholders and the media for
disclosure designated by the CSRC, while
apologizing to the Company’s shareholders
30 / 185
2021 Semi-annual Report
and public investors.
Restricted Shareholders (1) I will, in case of an intention to reduce my Made on: No Yes N/A N/A
sale of with direct shareholding after the expiration of the November
shares shareholding lock-up period, carefully abide by relevant 15, 2017;
of more than provisions of the CSRC and the stock Term:
5%: FANG exchange on reduction by shareholders, Indefinite
Yuyou and prudently formulate the shareholding term from
LI Xiaolin reduction plan in light of the needs for the November
Company with respect to share price 15, 2017
stabilization, operation and capital
management, and gradually reduce my shares
after the expiration of the lock-up period; (2)
My reduction of shareholding in the
Company shall be conducted through
centralized bidding at a stock exchange, block
trading or transfer by agreement, among other
ways, in compliance with the provisions of
relevant laws, regulations and rules; (3) I will,
before reducing the Company’s shares, make
an announcement three trading days in
advance, and perform the obligation of
information disclosure in a timely and
accurate manner pursuant to the rules of the
stock exchange, unless my shareholding in
the Company falls below 5%; (4) I will, in
case of failing to fulfill the above
commitments on shareholding reduction,
publicly explain the specific reasons for my
non-fulfillment at the Company’s general
meeting of shareholders and the media for
disclosure designated by CSRC, while
apologizing to the Company’s shareholders
and public investors.
Other The We will, in case of failure to take specific Made on: No Yes N/A N/A
Company measures to stabilize the share price when the November
31 / 185
2021 Semi-annual Report
preconditions for initiating the share price 15, 2017;
stabilization plan are met, publicly explain Term:
the specific reasons for the failure to take Indefinite
such measures at the general meeting of term from
shareholders and the media for disclosure November
designated by the CSRC, while apologizing 15, 2017
to the shareholders and public investors. If
losses are caused to investors for reasons
other than force majeure, we will be liable for
compensation to the investors according to
law and bear corresponding responsibilities in
accordance with laws, regulations and
requirements of relevant regulatory
authorities; If the losses are caused by force
majeure, a treatment scheme to minimize the
damages to the investors’ interests shall be
studied as soon as possible and submitted to
the general meeting of shareholders for
deliberation, so as to best protect our
investors’ interests. If we newly appoints
directors and officers within three years from
the date of listing of our shares, we will
require the newly appointed directors and
officers to fulfill the corresponding
commitments made by the directors and
officers when we are listed.
Other Controlling If I fail to take specific measures to stabilize Made on: No Yes N/A N/A
shareholders the price price in accordance with the share November
and de facto price stabilization plan when the 15, 2017;
controllers preconditions for initiating such plan are met, Term:
of the I will publicly explain the specific reasons for Indefinite
Company the failure at the Issuer’s general meeting of term from
shareholders and the media for disclosure November
designated by the CSRC, while apologizing 15, 2017
to the Issuer’s shareholders and public
32 / 185
2021 Semi-annual Report
investors; To the extent of non-fulfillment of
the above commitments, I will stop receiving
shareholder dividends from the Issuer within
5 working days from the date of the above
event, and my shares in the Issuer will not be
transferred until I take corresponding
measures to stabilize the share price and the
implementation thereof is completed in
accordance with the provisions of the above
plan.
Other Directors If I fail to take specific measures to stabilize Made on: No Yes N/A N/A
(excluding the price price in accordance with the share November
independent price stabilization plan when the 15, 2017;
directors) preconditions for initiating such plan are met, Term:
and officers I will publicly explain the specific reasons for Indefinite
of the the failure at the Issuer’s general meeting of term from
Company shareholders and the media for disclosure November
designated by the CSRC, while apologizing 15, 2017
to the Issuer’s shareholders and public
investors; To the extent of non-fulfillment of
the above commitments, I will stop receiving
remunerations and shareholder dividends (if
any) from the Issuer within 5 working days
from the date of the above event, and my
shares in the Issuer (if any) will not be
transferred until I take corresponding
measures to stabilize the share price and the
implementation thereof is completed in
accordance with the provisions of the above
plan.
Other The If our Prospectus contains any Made on: No Yes N/A N/A
Company misrepresentation, misleading statement or November
major omission, resulting in losses to 15, 2017;
investors in the securities trading, we will Term:
compensate the investors for the losses Indefinite
33 / 185
2021 Semi-annual Report
according to law. After such act is held by the term from
CSRC, the stock exchange where we are November
listed or the judicial authority to be illegal, we 15, 2017
will, based on the principles of simplifying
procedures, active negotiation, compensation
in advance and effectively protecting the
interests of investors, especially minority
investors, and according to the measurable
economic losses directly suffered by the
investors, actively compensate the investors
for their direct economic losses through
settlement, mediation by a third party and
establishment of Investor Compensation
Fund, etc.. Insofar as we violate the above
commitments, we will publicly apologize to
the shareholders and public investors for
failing to perform the above compensation
measures at the general meeting of
shareholders and the media for disclosure
designated by the CSRC, and compensate the
investors according to such actual losses as
recognized by the CSRC and relevant judicial
authorities.
Other Controlling If the Issuer’s Prospectus contains any Made on: No Yes N/A N/A
shareholders misrepresentation, misleading statement or November
and de facto major omission, resulting in losses to 15, 2017;
controllers investors in the securities trading, I will Term:
of the Issuer compensate the investors for the losses Indefinite
according to law. After such act is held by the term from
CSRC, the stock exchange where the November
Company is listed or the judicial authority to 15, 2017
be illegal, I will, based on the principles of
simplifying procedures, active negotiation,
compensation in advance and effectively
protecting the interests of investors,
34 / 185
2021 Semi-annual Report
especially minority investors, and according
to the measurable economic losses directly
suffered by the investors, actively compensate
the investors for their direct economic losses
through settlement, mediation by a third party
and establishment of Investor Compensation
Fund, etc.. Insofar as I violate the above
commitments, I will publicly apologize to the
shareholders and public investors for failing
to perform the above compensation measures
at the general meeting of shareholders and the
media for disclosure designated by the CSRC,
stop receiving shareholder dividends from the
Issuer within 5 working days from the date of
violation of the above commitments, and
meanwhile, my shares in the Issuer shall not
be transferred until I take corresponding
compensation measures as per the above
commitments and the implementation thereof
is completed.
Directors, If the Issuer’s Prospectus contains any Made on: No Yes N/A N/A
supervisors misrepresentation, misleading statement or November
and officers major omission, resulting in losses to 15, 2017;
investors in the securities trading, I will Term:
compensate the investors for the losses Indefinite
according to law. After such act is held by the term from
CSRC, the stock exchange where the November
Company is listed or the judicial authority to 15, 2017
be illegal, I will, based on the principles of
simplifying procedures, active negotiation,
compensation in advance and effectively
protecting the interests of investors,
especially minority investors, and according
to the measurable economic losses directly
suffered by the investors, actively compensate
35 / 185
2021 Semi-annual Report
the investors for their direct economic losses
through settlement, mediation by a third party
and establishment of Investor Compensation
Fund, etc.. Insofar as I violate the above
commitments, I will publicly apologize to the
shareholders and public investors for failing
to perform the above compensation measures
at the general meeting of shareholders and the
media for disclosure designated by the CSRC,
stop receiving remunerations (or allowances)
and shareholder dividends (if any) from the
Issuer within 5 working days from the date of
violation of the above commitments, and
meanwhile, my shares in the Issuer (if any)
shall not be transferred until I take
corresponding compensation measures as per
the above commitments and the
implementation thereof is completed.
Other The In order to ensure the effective use of the Made on: No Yes N/A N/A
Company proceeds from this Offering, effectively November
prevent the risk of dilution on immediate 15, 2017;
return and improve the ability of future Term:
return, we plan to improve the quality of Indefinite
assets, as well as increase the operating term from
income and future income for sustainable November
development by strengthening the operation 15, 2017
management and internal control,
accelerating the construction progress of
investment projects and improving the
investor return mechanism, to recover the
diluted immediate return. We undertake to
continuously improve various recovery
measures against dilution on immediate
return in accordance with the implementation
rules subsequently issued by the CSRC and
36 / 185
2021 Semi-annual Report
the SSE. In case of violating the above
commitments, we will promptly announce the
facts and reasons for the violation, and will,
unless the violation is caused by force
majeure or other reasons not attributable to
us, apologize to our shareholders and public
investors, while making supplementary or
alternative commitments to the investors for
the purposes of protecting their interests as
much as possible, and implementing such
supplementary or alternative commitments
after the same being reviewed and approved
by our general meeting of shareholders.
Other Controlling In order to give effect to the Company’s Made on: No Yes N/A N/A
shareholders recovery measures against dilution on November
and de facto immediate return, as the controlling 15, 2017;
controllers: shareholder and de facto controller of the Term:
HOU Company, I undertake that: (1) in no event Indefinite
Juncheng will I abuse my position as a controlling term from
and FANG shareholder and de facto controller, or November
Aiqin interfere with the operation and management 15, 2017
activities of the Company beyond my
authority, or encroach on the interests of the
Company; (2) I will, in case relevant
provisions of the Company and my
commitments are inconsistent with relevant
opinions and implementation rules on
recovery measures against dilution on
immediate return separately issued by the
CSRC and the SSE, make supplementary
commitments promptly in accordance with
the provisions of the CSRC and the SSE, and
actively procure the Company to make new
commitments or adopt new measures as
required thereby; (3) I will fully, completely
37 / 185
2021 Semi-annual Report
and timely fulfill the recovery measures
against dilution on immediate return
formulated by the Company and any of my
commitments on this regard. If I violate such
commitments, thereby causing losses to the
Company or its shareholders, I will be willing
to: ① make a public explanation and apology
at the general meeting of shareholders and the
media for disclosure designated by the CSRC;
② undertake the liability for compensation to
the Company and/or the shareholders
according to law; ③ unconditionally accept
the punishment or relevant regulatory
measures imposed on me by the securities
regulatory authorities such as the CSRC
and/or the SSE in accordance with the
relevant regulations and rules formulated or
promulgated thereby. Nevertheless, in no way
shall the above recovery measures be
construed as a guarantee as to the Company’s
future profits.
Other Directors In order to give effect to the Company’s Made on: No Yes N/A N/A
and officers recovery measures against dilution on November
immediate return, as a director/officer of the 15, 2017;
Company, I undertake that: (1) I will not Term:
transfer interests to other entities or Indefinite
individuals free of charge or on unfair term from
conditions, or otherwise damage the interests November
of the Company; (2) I will strictly abide by 15, 2017
the budget management of the Company, and
refrain from incur any post-related
consumption unless it is necessary to perform
my duties, and strictly accept the supervision
and management of the Company to avoid
waste or excessive consumption; (3) I will not
38 / 185
2021 Semi-annual Report
use the Company’s assets to engage in
investment and consumption activities
unrelated to my performance of duties; (4) I
will actively promote the improvement of the
Company’s remuneration system to make it
consistent with the recovery requirements on
diluted immediate return; support the
Company’s Board of Directors or
remuneration committee to link the
formulation, modification and supplement of
the Company’s remuneration system with the
implementation of the Company’s recovery
measures against dilution on immediate
return; and commit to link the exercise
conditions of the Company’s equity
incentives to be announced with the
implementation of the Company’s recovery
measures; (5) I will, in case relevant
provisions of the Company and my
commitments are inconsistent with relevant
opinions and implementation rules on
recovery measures against dilution on
immediate return separately issued by the
CSRC and the SSE, make supplementary
commitments promptly in accordance with
the provisions of the CSRC and the SSE, and
actively procure the Company to make new
commitments or adopt new measures as
required thereby; (6) I will fully, completely
and timely fulfill the recovery measures
against dilution on immediate return
formulated by the Company and any of my
commitments on this regard. If I violate such
commitments, thereby causing losses to the
Company or its shareholders, I will be willing
39 / 185
2021 Semi-annual Report
to: ① make a public explanation and apology
at the general meeting of shareholders and the
media for disclosure designated by the CSRC;
② undertake the liability for compensation to
the Company and/or the shareholders
according to law; ③ unconditionally accept
the punishment or relevant regulatory
measures imposed on me by the securities
regulatory authorities such as the CSRC
and/or the SSE in accordance with the
relevant regulations and rules formulated or
promulgated thereby. Nevertheless, in no way
shall the above recovery measures be
construed as a guarantee as to the Issuer’s
future profits.
Avoiding Controlling 1. I do not, and will not, directly or indirectly Made on: No Yes N/A N/A
horizontal shareholders engage in any activities that constitute November
competition and de facto horizontal competition with the existing and 15, 2017;
controller: future businesses of the Company and its Term:
HOU majority-owned subsidiaries, including but Indefinite
Juncheng not limited to the research and development, term from
and FANG production and sales of any products that are November
Aiqin the same as or similar to the products 15, 2017
developed, produced and sold by the
Company and its majority-owned
subsidiaries, and am willing to be liable for
the economic losses caused by violating the
above commitments to the Company; 2. For
the enterprises under my control, I will
perform my obligations under these
commitments through my local offices and
personnel (including but not limited to
directors and managers) in such enterprises,
and am willing to bear the liability for
compensation for the economic losses caused
40 / 185
2021 Semi-annual Report
to the Company due to the violation of the
above commitments; 3. From the date of
signing this letter of commitment, if the
Company further expands its products and
business scope, I and the enterprises under
my control will refrain from competing with
the expanded products or business of the
Company, or will, in case of competing with
the same, withdraw from the competition by
(1) stopping producing products that
constitute or may constitute the competition,
(2) ceasing to operate such business as
constitutes or may constitute the competition,
(3) incorporating the competitive business
into the Company for operation, or (4)
transferring the competitive business to
unrelated third parties; 4. Hangzhou
Huazhuang Industrial Investment Co., Ltd.,
Huzhou Mogan Wangshu Cosmetics Industry
Phase I Venture Capital Partnership (L.P.)
and their investees engage in no cosmetics
business or upstream and downstream
business thereof, and if they engage in such
businesses in the future, I undertake that I
will withdraw my investment in them through
equity transfer and other means, and that the
Company will be given priority to decide
whether to invest in the said enterprises
subject to the legal provisions and the consent
of other shareholders of such enterprises.
Other Controlling In order to give effect to the Company’s Made on: No Yes N/A N/A
Commitments shareholders recovery measures against dilution on April 21,
on and de facto immediate return, I undertake that: 1. I will 2021;
refinancing controllers: not interfere with the Company’s operation Term:
HOU and management activities beyond my Indefinite
41 / 185
2021 Semi-annual Report
Juncheng authority or encroach on the interests of the term from
and FANG Company; 2. From the date of making these April 21,
Aiqin commitments to the completion of the 2021
implementation of this public offering by the
Company of A-share convertible corporate
bonds, to the extent the CSRC makes new
regulatory provisions concerning the recovery
measures against dilution on immediate
return, etc., rendering the above commitments
non-conforming to the provisions, I will make
supplementary commitments in accordance
with the latest provisions of the CSRC at that
time; 3. I will earnestly fulfill the Company’s
relevant recovery measures against dilution
on immediate return and any of my
commitments on this regard, or, will, in case
of violating the said commitments thus
causing losses to the Company or its
investors, be willing to bear the liability for
compensation to the Company or the
investors according to law. As one of the
parties responsible for the recovery measures,
I will, to the extent I violate or refuse to fulfil
the above commitments, accept the
punishment or relevant regulatory measures
imposed on me by the securities regulatory
authorities such as the CSRC and the SSE in
accordance with the relevant regulations and
rules formulated or promulgated thereby.
Other Directors In order to give effect to the Company’s Made on: No Yes N/A N/A
and officers recovery measures against dilution on April 21,
immediate return, I undertake that: 1. I will 2021;
not transfer interests to other entities or Term:
individuals free of charge or on unfair Indefinite
conditions, or otherwise damage the interests term from
42 / 185
2021 Semi-annual Report
of the Company; 2. I will restrict my April 21,
post-related consumption behavior; 3. I will 2021
not use the Company’s assets to engage in
investment and consumption activities
unrelated to my performance of duties; 4. The
remuneration system formulated by the Board
of Directors or the remuneration and
assessment committee will be linked to the
implementation of the Company’s recovery
measures on return; 5. The exercise
conditions of the Company’s equity incentive,
if the same is implemented in the future, to be
announced will be linked to the
implementation of the Company’s recovery
measures on return; 6. From the date of
making these commitments to the completion
of the implementation of this public offering
by the Company of A-share convertible
corporate bonds, to the extent the CSRC
makes new regulatory provisions concerning
the recovery measures against dilution on
immediate return, etc., rendering the above
commitments non-conforming to the
provisions, I will make supplementary
commitments in accordance with the latest
provisions of the CSRC at that time. As one
of the parties responsible for the recovery
measures, I will, to the extent I violate or
refuse to fulfil the above commitments,
accept the punishment or relevant regulatory
measures imposed on me by the securities
regulatory authorities such as the CSRC and
the SSE in accordance with the relevant
regulations and rules formulated or
promulgated thereby.
43 / 185
2021 Semi-annual Report
II. Non-operational Occupation of Funds by the Controlling Shareholders and Other Related Parties during the Reporting Period
Applicable √ N/A
III. Illegal Guarantee
Applicable √ N/A
44 / 185
2021 Semi-annual Report
IV. Audit of Semi-annual Report
Applicable √ N/A
V. Changes and Treatment of Matters Involved in Modified Audit Opinions in the Annual Report
of Prior Year
Applicable √ N/A
VI. Matters Related to Bankruptcy and Reorganization
Applicable √ N/A
VII. Material Litigation and Arbitration
There are material litigation and arbitration during the Reporting Period √ There are no material
litigation and arbitration during the Reporting Period
VIII. Suspected Violations, Penalties and Rectifications of the Listed Company and Its Directors,
Supervisors, Officers, Controlling Shareholders and De Facto Controllers
Applicable √ N/A
IX. Integrity of the Company, Its Controlling Shareholders and De Facto Controllers during the
Reporting Period
√ Applicable N/A
During the Reporting Period, the Company, its controlling shareholders and de facto controllers were in
good faith.
X. Significant Related-party Transactions
(I) Related-party Transactions Pertaining to Daily Operation
1. Matters that have been disclosed in the interim announcement without progress or change in
the follow-up implementation
Applicable √ N/A
2. Matters that have been disclosed in the interim announcement with progress or changes in the
follow-up implementation
√ Applicable N/A
The 19th meeting of the second Board of Directors and the 2020 annual general meeting of
shareholders were held by the Company on April 21, 2021 and May 13, 2021 respectively, at which the
Proposal on the Estimated Amount of Daily Related-party Transactions in 2021 was reviewed and
approved. For details, please refer to the Announcement on the Estimated Amount of Daily Related-party
Transactions in 2021 (Announcement No.: 2021-018) disclosed on the website of the SSE (www.sse.
com. cn) on April 23, 2021. In the first half of 2021, the daily related-party transactions of the Company
did not exceed the estimated amount at the beginning of the year.
The estimated and actual amounts of the Company’s daily related-party transactions in 2021 are as
follows:
Category of
Actual amount in 2021
related-party Related party Estimated amount in 2021
H1
transaction
45 / 185
2021 Semi-annual Report
Deposits in
Zhejiang Leqing Rural
bank accounts No more than RMB150
Commercial Bank Co., RMB149.2961 million
opened with the million for daily amount
Ltd.
related party
Huzhou Beauty Town
Related lease Technology Incubation RMB800,000 RMB484,000
Park Co., Ltd.
Note: The “actual amount in 2021” of Zhejiang Leqing Rural Commercial Bank Co., Ltd. represents the
balance in the accounts as of June 30, 2021. In the first half of 2021, the Company obtained deposit
interest of RMB3.1784 million from Zhejiang Leqing Rural Commercial Bank Co., Ltd..
3. Matters not disclosed in the interim announcement
Applicable √ N/A
(II) Related-party Transactions Arising from Acquisition or Disposal of Assets or Equities
1. Matters that have been disclosed in the interim announcement without progress or change in
the follow-up implementation
Applicable √ N/A
2. Matters that have been disclosed in the interim announcement with progress or change in the
follow-up implementation
Applicable √ N/A
3. Matters not disclosed in the interim announcement
Applicable √ N/A
4. The performance realization during the Reporting Period where the performance agreement
is involved
Applicable √ N/A
(III) Significant related-party transactions pertaining to joint external investment
1. Matters that have been disclosed in the interim announcement without progress or change in
the follow-up implementation
Applicable √ N/A
2. Matters that have been disclosed in the interim announcement with progress or change in the
follow-up implementation
Applicable √ N/A
3. Matters not disclosed in the interim announcement
Applicable √ N/A
(IV) Credits and Debits with Related Parties
1. Matters that have been disclosed in the interim announcement without progress or change in
the follow-up implementation
Applicable √ N/A
46 / 185
2021 Semi-annual Report
2. Matters that have been disclosed in the interim announcement with progress or change in the
follow-up implementation
Applicable √ N/A
3. Matters not disclosed in the interim announcement
Applicable √ N/A
(V) Financial Businesses between the Company and Its Related Financial Companies,
Majority-owned Financial Companies and Related Parties
Applicable √ N/A
(VI) Other Significant Related-party Transactions
Applicable √ N/A
(VII) Others
Applicable √ N/A
XI. Significant Contracts and Performances Thereof
1 Trusteeship, contracting and leasing
Applicable √ N/A
47 / 185
2021 Semi-annual Report
2 Significant guarantees performed and outstanding during the Reporting Period
√ Applicable N/A
Unit: RMB0’000 Currency: RMB
External guarantees of the Company (excluding guarantees for subsidiaries)
Relationship
Date of Has the Overdue
between Is the Related-party
Guaranteed Guarantee guarantee Guarantee Guarantee Guarantee Collateral guarantee amount Counter Association
Guarantor guarantor Main debt guarantee guarantee or
party amount (date of start date due date type (if any) been under guarantee relationship
and listed overdue not
agreement) fulfilled guarantee
company
Total amount of guarantee during the Reporting Period (excluding guarantee for
0
subsidiaries)
Total guarantee balance at the end of the Reporting Period (A) (excluding
0
guarantee for subsidiaries)
Guarantees of the Company for its subsidiaries
Total amount of guarantee for subsidiaries during the Reporting Period 9,900
Total guarantee balance to subsidiaries at the end of the Reporting Period (B) 0
Total amount of the Company’s guarantee (including guarantee for subsidiaries)
Total guarantee amount (A + B) 0
Proportion of total guarantee amount to the Company’s net assets (%) 0
Of which:
Amount of guarantee provided for shareholders, de facto controllers and their
0
related parties (C)
Amount of debt-related guarantee provided directly or indirectly for the
0
guaranteed parties with asset-liability ratio exceeding 70% (D)
Amount of total guarantee exceeding 50% of net assets (E) 0
Total amount of guarantees in the above three items (C + D + E) 0
Descriptions of possible joint and several liability for repayment under ongoing
N/A
guarantee
Descriptions of guarantee N/A
48 / 185
2021 Semi-annual Report
3 Other significant contracts
Applicable √ N/A
XII. Description of Other Significant Events
Applicable √ N/A
Section VII Share Changes and Shareholders
I. Changes in Share Capital
(I) Statement of Changes in Shares
1. Statement of changes in shares
Unit: share
Before this
Increase or decrease this time (+,-) After this change
change
Bon Capitali
Ratio New us zation of Ratio
Quantity Others Sub-total Quantity
(%) shares shar capital (%)
es reserve
I. Restricted -293,2
747,425 0.37 -293,265 454,160 0.23
share 65
1.
Shareholdings
by the State
2.
Shareholdings
by the
State-owned
legal persons
3. Other
shareholdings -293,2
747,425 0.37 -293,265 454,160 0.23
by domestic 65
investors
Including:
shareholdings
by domestic
legal persons
Shareholdings
-293,2
by domestic 747,425 0.37 -293,265 454,160 0.23
65
natural persons
4.
Shareholdings
by foreign
investors
Including:
Shareholdings
by overseas
legal persons
Shareholdings
by overseas
natural persons
II. Unrestricted 200,369, 99.63 +293,2 +293,26 200,662, 99.77
49 / 185
2021 Semi-annual Report
outstanding 500 65 5 765
share
1. RMB 200,369, +293,2 +293,26 200,662,
99.63 99.77
common stock 500 65 5 765
2. Domestic
listed foreign
share
3. Overseas
listed foreign
share
4. Others
201,116, 100.0 201,116,
III. Total 0 0 100.00
925 0 925
2. Description of changes in shares
√ Applicable N/A
On January 5, 2021, the Company held the 18th meeting of the second Board of Directors and the
17th meeting of the second Board of Supervisors, deliberating and approving the Proposal on the
Satisfaction of Restrictions Release Conditions for the Second Release Period of the Restricted Shares
Granted Initially and with Reserve under the 2018 Restricted Share Incentive Plan, and agreeing to
handle the release procedures for the grantees who meet the conditions for releasing the restrictions. A
total of 293,265 restricted shares were released, which were allowed to be listed and circulated on
January 14, 2021. The number of the unrestricted outstanding shares in the Company increased from
200,369,500 before the Listing to 200,662,765, while that of the restricted outstanding shares decreased
from 747,425 before the Listing to 454,160.
3. Impact of share changes on financial indicators such as earnings per share and net assets per
share during the period after the Reporting Period to the disclosure date of the Semi-annual
Report (if any)
Applicable √ N/A
4. Other contents deemed necessary by the Company for disclosure or required to be disclosed
by the securities regulatory authority
Applicable √ N/A
(II) Changes in Restricted Shares
√ Applicable N/A
Unit: share
Number of
Increase in Number of
Number of restricted
the number restricted
restricted shares
Name of of restricted shares at the Reasons for
shares at the released Release date
shareholder shares in the end of the restriction
opening of during the
Reporting Reporting
the period Reporting
Period Period
Period
JIN Yanhua 68,810 29,490 0 39,320 Initial grant January 14,
under the 2021
2018
Restricted
Share
Incentive
Plan
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2021 Semi-annual Report
ZHANG 34,020 14,580 0 19,440 Initial grant January 14,
Yefeng under the 2021
2018
Restricted
Share
Incentive
Plan
WANG Li 41,230 17,670 0 23,560 Grant with January 14,
reserve 2021
under the
2018
Restricted
Share
Incentive
Plan
18 grantees 461,645 172,685 0 288,960 Initial grant January 14,
being under the 2021
granted 2018
initially Restricted
under the Share
2018 Incentive
Restricted Plan
Share
Incentive
Plan
10 grantees 141,720 58,840 0 82,880 Grant with January 14,
being reserve 2021
granted with under the
reserve 2018
under the Restricted
2018 Share
Restricted Incentive
Share Plan
Incentive
Plan
Total 747,425 293,265 0 454,160 / /
II. Shareholders
(I) Total Number of Shareholders:
Total number of common shareholders by the end of the 17,050
Reporting Period (person)
Total number of preferred shareholders with voting rights 0
by the end of the Reporting Period (person)
(II) Shareholding of Top Ten Shareholders and Top Ten Outstanding Shareholders (or
Unrestricted Shareholders) by the End of the Reporting Period
Unit: share
Shareholding of top ten shareholders
Number of Pledge, marking
Increase or Number
Name of shares held or freezing
decrease during Ratio of Nature of
shareholder at the
the Reporting (%) restricted Share shareholder
(full name) closing of Number
Period shares status
the period
51 / 185
2021 Semi-annual Report
Domestic
HOU Juncheng -764,869 71,875,631 35.74 0 / natural
person
Domestic
11,920
FANG Yuyou -2,607,427 42,211,691 20.99 0 Pledged natural
,000
person
Hong Kong
Securities
Clearing 13,759,263 30,518,946 15.17 0 / Other
Company
Limited
Domestic
CAO Liangguo -81,000 4,043,938 2.01 0 / natural
person
Domestic
XU Junqing -2,111,591 3,832,210 1.91 0 / natural
person
Domestic
LI Xiaolin -2,741,312 3,502,910 1.74 0 / natural
person
Industrial and
Commercial
Bank of China
Limited -
Jingshun
-799,766 1,700,000 0.85 0 / Other
Changcheng
Emerging
Growth Hybrid
Securities
Investment Fund
Aberdeen
Standard
Investment
Management
(Asia) Co., Ltd. - 1,069,326 1,069,326 0.53 0 / Other
Aberdeen
Standard - China
A-share Equity
Fund
Abu Dhabi
Investment 997,598 0.50 0 / Other
Authority
China CITIC
Bank Co., Ltd. -
ABC Huili
Strategy Selected -93,400 935,541 0.47 0 / Other
Hybrid
Securities
Investment Fund
Shareholding of top ten unrestricted shareholders
Number of Type and number of shares
Name of shareholder unrestricted shares
Type Number
held
RMB common
HOU Juncheng 71,875,631 71,875,631
stock
52 / 185
2021 Semi-annual Report
RMB common
FANG Yuyou 42,211,691 42,211,691
stock
Hong Kong Securities Clearing Company RMB common
30,518,946 30,518,946
Limited stock
RMB common
CAO Liangguo 4,043,938 4,043,938
stock
RMB common
XU Junqing 3,832,210 3,832,210
stock
RMB common
LI Xiaolin 3,502,910 3,502,910
stock
Industrial and Commercial Bank of China
RMB common
Limited - Jingshun Changcheng Emerging 1,700,000 1,700,000
stock
Growth Hybrid Securities Investment Fund
Aberdeen Standard Investment Management
RMB common
(Asia) Co., Ltd. - Aberdeen Standard - China 1,069,326 1,069,326
stock
A-share Equity Fund
RMB common
Abu Dhabi Investment Authority 997,598 997,598
stock
China CITIC Bank Co., Ltd. - ABC Huili
RMB common
Strategy Selected Hybrid Securities Investment 935,541 935,541
stock
Fund
Description of special accounts for repurchase
None
among top ten shareholders
Description of the above shareholders delegating,
None
being delegated and waiving voting rights
FANG Yuyou is the younger brother of HOU
Description of the association relationship or
Juncheng’s spouse FANG Aiqin, so HOU Juncheng and
concerted action of the above shareholders
FANG Yuyou are related.
Description of preferred shareholders with voting
None
rights and the number of shares held thereby
Number of shares held by the top ten restricted shareholders and the restrictions
√ Applicable N/A
Unit: share
Listing and trading of
Number of
restricted shares
Name of restricted shareholder restricted Restrictions
S/N Tradable Number of new
shares held
time tradable shares
See the note
1 Grantees of equity incentives 454,160
for details
Description of the association
relationship or concerted action of the
None
above shareholders
Note: The restricted shares held by the grantees of equity incentives refer to the shares granted initially
and with reserve under the Company’s 2018 Restricted Share Incentive Plan, of which, the shares
initially granted shall be subject to a restriction period of 36 months from completion of the registration
of such shares in Shanghai Branch of China Securities Depository and Clearing Corporation Limited
(September 10, 2018), and the shares granted with reserve shall be subject to a restriction period of 37
months from completion the registration thereof in Shanghai Branch of China Securities Depository and
Clearing Corporation Limited (September 10, 2018).
(III)Strategic Investors or General Legal Persons Becoming the Top Ten Shareholders due to
Placement of New Shares
Applicable √ N/A
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2021 Semi-annual Report
III. Directors, Supervisors and Officers
(I) Changes in Shareholding of Current Directors, Supervisors and Officers, Including Those
Leaving Office, During the Reporting Period
√ Applicable N/A
Unit: share
Increase and
Number of Number of
decrease of
shares held at shares held at Reasons for increase
Name Position shares during
the opening the closing of or decrease
the Reporting
of the period the period
Period
HOU Director 72,640,500 71,875,631 Reduction in
Juncheng -764,869 response to personal
capital demand
FANG Yuyou Director 44,819,118 42,211,691 Reduction in
-2,607,427 response to personal
capital demand
CAO Director 4,124,938 4,043,938 Reduction in
Liangguo -81,000 response to personal
capital demand
Other descriptions
Applicable √ N/A
(II) Equity Incentives Granted to Directors, Supervisors and Officers during the Reporting Period
Applicable √ N/A
(III) Other Descriptions
Applicable √ N/A
IV. Changes in Controlling Shareholders or De Facto Controllers
Applicable √ N/A
Section VIII Preferred Stock
Applicable √ N/A
Section IX Bonds
I. Debentures, Corporate Bonds and Non-financial Business Debt Financing Instruments
Applicable √ N/A
II. Convertible Corporate Bonds
Applicable √ N/A
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Section X Financial Report
I. Auditor’s Report
Applicable √ N/A
II. Financial Statements
Consolidated Balance Sheet
June 30, 2021
Prepared by: Proya Cosmetics Co., Ltd
Unit: Yuan Currency: RMB
Item Note June 30, 2021 December 31, 2020
Current assets:
Cash and bank balances VII.1 1,236,337,706.75 1,416,654,640.93
Balances with clearing
agencies
Placements with banks and
other financial institutions
Held-for-trading financial
assets
Derivative financial assets
Notes receivable
Accounts receivable VII.5 174,316,681.46 284,878,419.58
Receivable financing VII.6 5,263,729.60 5,531,997.32
Prepayments VII.7 89,183,962.68 82,742,815.92
Premiums receivable
Amounts receivable under
reinsurance contracts
Reinsurer’s share of
insurance contract reserves
Other receivables VII.8 47,275,902.55 48,733,527.35
Including: Interest
receivable
Dividends receivable
Financial assets purchased
under resale agreements
Inventories VII.9 356,282,644.43 468,641,017.75
Contract assets
Held-for-sale assets
Non-current assets due
within one year
Other current assets VII.13 45,267,333.55 35,235,811.27
Total current assets 1,953,927,961.02 2,342,418,230.12
Non-current assets:
Loans and advances to
customers
Debt investments
Other debt investments
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Long-term receivables
Long-term equity VII.17 186,592,634.00 58,220,059.60
investments
Other investments in VII.18 20,580,000.00 20,580,000.00
equity instruments
Other non-current financial
assets
Investment properties VII.20 71,819,415.95 72,237,610.10
Fixed assets VII.21 553,956,322.47 565,864,152.62
Construction in progress VII.22 115,081,293.14 47,324,523.36
Bearer biological assets
Oil and gas assets
Right of use assets
Intangible assets VII.26 380,925,301.67 314,643,323.97
Development expenditure
Goodwill 31,034,161.20
Long-term prepaid VII.29 38,161,082.81 50,576,793.53
expenses
Deferred income tax assets VII.30 50,977,297.40 46,660,550.76
Other non-current Assets VII.31 5,731,163.01 87,322,780.03
Total non-current assets 1,423,824,510.45 1,294,463,955.17
Total assets 3,377,752,471.47 3,636,882,185.29
Current liabilities:
Short-term borrowings VII.32 200,000,000.00 299,280,435.09
Loans from the central
bank
Taking from banks and
other financial institutions
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable VII.35 63,672,739.08 64,580,000.00
Accounts payable VII.36 346,738,059.11 515,832,031.27
Receipts in advance
Contract liabilities VII.38 52,820,185.37 30,618,778.99
Financial assets sold under
repurchase agreements
Customer deposits and
deposits from banks and other
financial institutions
Funds from securities
trading agency
Funds from underwriting
securities agency
Employee benefits payable VII.39 52,909,015.47 70,828,239.70
Taxes payable VII.40 73,837,489.98 71,335,290.77
Other payables VII.41 73,609,323.68 75,546,323.32
Including: Interest
payable
Dividends payable
Fees and commissions
payable
Amounts payable under
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reinsurance contracts
Held-for-sale liabilities
Non-current liabilities due
within one years
Other current liabilities VII.44 2,149,196.85 1,439,262.02
Total current liabilities 865,736,009.54 1,129,460,361.16
Non-current liabilities:
Insurance contract reserves
Long-term borrowings
Bonds payable
Including: Preferred
stock
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee
benefits payable
Provisions VII.50 6,052,681.88 10,190,099.22
Deferred income VII.51 7,455,808.33 8,495,353.33
Deferred income tax VII.30 6,141,332.95 6,874,105.45
liabilities
Other non-current
liabilities
Total non-current liabilities 19,649,823.16 25,559,558.00
Total liabilities 885,385,832.70 1,155,019,919.16
Owner’s equity (or
shareholders’ equity ):
Paid-in capital (or share VII.53 201,116,925.00 201,116,925.00
capital)
Other equity instruments
Including: Preferred
stock
Perpetual bonds
Capital reserve VII.55 841,032,150.17 837,034,836.69
Less: Treasury shares VII.56 7,361,933.60 12,653,905.25
Other comprehensive VII.57 -665,661.47 -269,066.13
income
Special reserve
Surplus reserve VII.59 100,634,780.00 100,634,780.00
General risk reserve
Retained profits VII.60 1,346,968,993.49 1,265,671,865.63
Total owners’ equity (or 2,481,725,253.59 2,391,535,435.94
shareholders’ equity)
attributable to equity holders of
the parent company
Minority interests 10,641,385.18 90,326,830.19
Total owners’ equity (or 2,492,366,638.77 2,481,862,266.13
shareholders’ equity)
Total liabilities and owners’ 3,377,752,471.47 3,636,882,185.29
equity (shareholders’ equity)
Person in charge of the Company: HOU Juncheng Chief Financial Officer: WANG Li Head of the
Accounting Organization: WANG Li
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Balance Sheet of the Parent Company
June 30, 2021
Prepared by: Proya Cosmetics Co., Ltd
Unit: Yuan Currency: RMB
Item Note June 30, 2021 December 31, 2020
Current Assets:
Cash and bank balances 460,108,856.64 498,358,108.55
Held-for-trading financial
assets
Derivative financial assets
Notes receivable
Accounts receivable XVII.1 487,476,860.98 565,037,411.15
Receivable financing 3,391,723.00
Prepayments 28,408,424.58 9,389,481.27
Other receivables XVII.2 233,121,481.53 236,585,409.48
Including: Interest
receivable
Dividends
receivable
Inventories 176,120,027.88 227,126,018.70
Contract assets
Held-for-sale assets
Non-current assets due
within one year
Other current assets 36,361,283.47 15,543,206.01
Total current assets 1,424,988,658.08 1,552,039,635.16
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity XVII.3 378,673,104.59 347,372,956.06
investments
Other investments in 20,580,000.00 20,580,000.00
equity instruments
Other non-current financial
assets
Investment properties 337,269,798.16 339,018,465.70
Fixed assets 283,280,852.93 291,193,420.67
Construction in progress 110,818,849.59 46,993,562.96
Bearer biological assets
Oil and gas assets
Right of use assets
Intangible assets 377,215,032.72 308,401,627.24
Development expenditure
Goodwill
Long-term prepaid 27,410,563.79 34,817,495.54
expenses
Deferred income tax assets 13,453,027.69 15,889,636.90
Other non-current Assets 5,995,408.95 87,545,799.42
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Total non-current assets 1,554,696,638.42 1,491,812,964.49
Total assets 2,979,685,296.50 3,043,852,599.65
Current liabilities:
Short-term borrowings 200,000,000.00 200,163,972.59
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable 63,672,739.08 64,580,000.00
Accounts payable 254,020,691.00 403,605,887.84
Receipts in advance
Contract liabilities 59,127,134.06 10,212,194.96
Employee benefits payable 26,187,595.81 29,624,549.78
Taxes payable 52,346,310.37 34,953,057.88
Other payables 19,378,091.27 24,771,086.23
Including: Interest
payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due
within one year
Other current liabilities
Total current liabilities 674,732,561.59 767,910,749.28
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred
stock
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income 7,455,808.33 8,495,353.33
Deferred income tax 5,627,540.89 6,283,428.68
liabilities
Other non-current
liabilities
Total non-current liabilities 13,083,349.22 14,778,782.01
Total liabilities 687,815,910.81 782,689,531.29
Owner’s equity (or
shareholders’ equity):
Paid-in capital (or share 201,116,925.00 201,116,925.00
capital)
Other equity instruments
Including: Preferred
stock
Perpetual bonds
Capital reserve 838,006,964.60 837,075,425.32
Less: Treasury shares 7,361,933.60 12,653,905.25
Other comprehensive
income
Special reserve
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2021 Semi-annual Report
Surplus reserve 100,634,780.00 100,634,780.00
Retained profits 1,159,472,649.69 1,134,989,843.29
Total owners’ equity (or 2,291,869,385.69 2,261,163,068.36
shareholders’ equity)
Total liabilities and owners’ 2,979,685,296.50 3,043,852,599.65
equity (or shareholders’ equity)
Person in charge of the Company: HOU Juncheng Chief Financial Officer: WANG Li Head of the
Accounting Organization: WANG Li
Consolidated Income Statement
January to June, 2021
Unit: Yuan Currency: RMB
Item Note First half of 2021 First half of 2020
I. Total operating income VII.61 1,917,718,497.60 1,384,323,848.88
Including: Operating income VII.61 1,917,718,497.60 1,384,323,848.88
Interest income
Premiums earned
Fee and commission
income
II. Total operating costs 1,667,751,364.94 1,148,706,930.06
Including: Operating costs VII.61 695,558,289.19 555,120,455.16
Interest expenses
Fee and commission
expenses
Surrenders
Claims and policyholder
benefits (net of mounts recoverable
from reinsurers)
Charges in insurance
contract reserves (net of reinsurers’
share)
Insurance policyholder
dividends
Expenses for reinsurance
accepted
Taxes and levies VII.62 19,290,055.27 11,499,023.35
Selling expenses VII.63 807,204,631.76 457,414,432.20
General and VII.64 116,191,173.05 100,182,355.15
administrative expenses
Research and VII.65 31,371,344.46 31,865,144.96
development expenses
Financial expenses VII.66 -1,864,128.79 -7,374,480.76
Including: Interest 5,082,866.57 2,502,979.38
expenses
Interest income 11,723,066.05 8,171,010.26
Add: Other income VII.67 10,159,807.90 8,526,648.97
Investment income (Loss is VII.68 -2,378,652.94 2,318,347.17
indicated by “-”)
Including: Income from -2,375,106.70 -208,988.41
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2021 Semi-annual Report
investments in associates and joint
ventures
Income from
derecognition of financial assets
measured at amortized cost
Foreign exchange gains
(Loss is indicated by “-”)
Net exposure hedging
income (Loss is indicated by “-”)
Income from changes in fair
value (Loss is indicated by “-”)
Impairment losses of credit VII.71 2,955,792.59 -1,142,266.22
(Loss is indicated by “-”)
Impairment losses of assets VII.72 -8,625,168.59 -9,651,315.34
(Loss is indicated by “-”)
Income from disposal of VII.73 -1,416.28
assets (Loss is indicated by “-”)
III. Operating profit (Loss is indicated 252,077,495.34 235,668,333.40
by “-”)
Add: Non-operating income VII.74 114,443.12 405,868.31
Less: Non-operating expenses VII.75 60,174.49 15,505,794.81
IV. Total profit (Total losses are 252,131,763.97 220,568,406.90
indicated by “-”)
Less: Income tax expenses VII.77 43,482,270.58 46,884,003.64
V. Net profit (Net loss is indicated by 208,649,493.39 173,684,403.26
“-”)
(I) Categorized by the nature of continuing operation
1. Net profit from continuing 208,649,493.39 173,684,403.26
operations (Net loss is indicated by
“-”)
2. Net profit from discontinued
operations (Net loss is indicated by
“-”)
(II) Categorized by ownership
1. Net profit attributable to 226,101,313.86 178,767,020.76
shareholders of the parent company
(Net loss is indicated by “-”)
2. Profit or loss attributable to -17,451,820.47 -5,082,617.50
minority interests (Net loss is
indicated by “-”)
VI. Other comprehensive income, net -396,595.34 -136,681.49
of tax
(I) Other comprehensive income -396,595.34 -136,681.49
attributable to owners of the parent
company, net of tax
1. Other comprehensive income
that cannot be subsequently
reclassified to profit or loss
(1) Changes from re-measurement of
defined benefit plans
(2) Other comprehensive income that
cannot be reclassified to profit or loss
under the equity method
(3) Changes in fair value of other
investments in equity instruments
(4) Changes in fair value of
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2021 Semi-annual Report
enterprises’ own credit risks
2. Other comprehensive income that -396,595.34 -136,681.49
will be reclassified to profit or loss
(1) Other comprehensive income that
will be reclassified to profit or loss
under the equity method
(2) Changes in fair value of other debt
investments
(3) Amounts of financial assets
reclassified into other comprehensive
income
(4) Provision for credit impairment of
other debt investments
(5) Reserve for cash flow hedges
(6) Translation differences of financial -396,595.34 -136,681.49
statements denominated in foreign
currencies
(7) Others
(II) Other comprehensive income
attributable to minority interests, net of
tax
VII. Total comprehensive income 208,252,898.05 173,547,721.77
(I) Total comprehensive income 225,704,718.52 178,630,339.27
attributable to owners of the parent
company
(II) Total comprehensive income -17,451,820.47 -5,082,617.50
attributable to minority interests
VIII. Earnings per share
(I) Basic earnings per share 1.13 0.89
(RMB/share)
(II) Diluted earnings per share 1.12 0.89
(RMB/share)
For business combination involving enterprises under common control in the current period, the net
profit realized by the acquirees before the combination is: RMB0, and the net profit realized thereby in
the prior period is: RMB0.
Person in charge of the Company: HOU Juncheng Chief Financial Officer: WANG Li Head of the
Accounting Organization: WANG Li
Income Statement of the Parent Company
January to June, 2021
Unit: Yuan Currency: RMB
Item Note First half of 2021 First half of 2020
I. Total operating income XVII.4 896,751,013.59 793,053,800.28
Less: Operating costs XVII.4 456,588,246.62 364,806,553.96
Taxes and levies 9,582,635.63 6,466,005.47
Selling expenses 81,296,635.42 91,431,939.35
General and administrative 93,298,483.53 73,330,062.18
expenses
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Research and development 33,738,875.24 34,152,355.31
expenses
Financial expenses -5,242,699.84 -9,282,936.64
Including: Interest expenses 3,673,688.51 1,536,524.31
Interest income 11,002,950.08 6,719,468.13
Add: Other income XVII.5 2,487,852.60 7,155,816.18
Investment income (Loss is -2,511,473.64 1,995,502.53
indicated by “-”)
Including: Income from -2,511,473.64 -270,798.84
investments in associates and joint
ventures
Income from
derecognition of financial assets
measured at amortized cost (Loss is
indicated by “-”)
Net exposure hedging
income (Loss is indicated by “-”)
Income from changes in fair
value (Loss is indicated by “-”)
Impairment losses of credit -29,471,176.41 -10,545,554.20
(Loss is indicated by “-”)
Impairment losses of assets -1,596,258.57 -4,475,027.17
(Loss is indicated by “-”)
Income from disposal of
assets (Loss is indicated by “-”)
II. Operating profit (Loss is indicated 196,397,780.97 226,280,557.99
by “-”)
Add: Non-operating income 5,363.22 6,666.00
Less: Non-operating expenses 9,975.00 15,071,217.24
III. Total profit (Total losses are 196,393,169.19 211,216,006.75
indicated by “-”)
Less: Income tax expenses 27,106,176.79 33,677,060.59
IV. Net profit (Net loss is indicated by 169,286,992.40 177,538,946.16
“-”)
(I) Net profit from continuing 169,286,992.40 177,538,946.16
operation (Net loss is indicated by “-”)
(II) Net profit from discontinued
operations (Net loss is indicated by
“-”)
V. Other comprehensive income, net
of tax
(I) Other comprehensive income
that cannot be subsequently
reclassified to profit or loss
1. Changes from
re-measurement of defined benefit
plans
2. Other comprehensive
income that cannot be reclassified to
profit or loss under the equity method
3. Changes in fair value of
other investments in equity
instruments
4. Changes in fair value of
enterprises’ own credit risks
(II) Other comprehensive income
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2021 Semi-annual Report
that will be reclassified to profit or
loss
1. Other comprehensive income
that will be reclassified to profit or
loss under the equity method
2. Changes in fair value of other
debt investments
3. Amounts of financial assets
reclassified into other comprehensive
income
4. Provision for credit impairment
of other debt investments
5. Reserve for cash flow hedges
6. Translation differences of
financial statements denominated in
foreign currencies
7. Others
VI. Total comprehensive income 169,286,992.40 177,538,946.16
VII. Earnings per share:
(I) Basic earnings per share
(RMB/share)
(II) Diluted earnings per share
(RMB/share)
Person in charge of the Company: HOU Juncheng Chief Financial Officer: WANG Li Head of the
Accounting Organization: WANG Li
Consolidated Cash Flow Statement
January to June 2021
Unit: Yuan Currency: RMB
Item Note First half of 2021 First half of 2020
I. Cash flows from operating
activities:
Cash receipts from the sale of 2,222,119,171.48 1,482,166,082.91
goods and the rendering of
services
Net increase in customer
deposits and deposits from banks
and other financial institutions
Net increase in loans from
the central bank
Net increase in taking from
other financial institutions
Cash payments for claims
and policyholders’ benefits under
direct insurance contracts
Net cash receipts from
reinsurance business
Net cash receipts from
policyholders’ deposits and
investment contract liabilities
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2021 Semi-annual Report
Cash receipts from interest,
fees and commissions
Net increase in taking from
banks and other financial
institutions
Net increase in financial
assets sold under repurchase
arrangements
Net cash received from
securities trading agency
Receipts of tax refunds 8,644,521.51 3,862,697.97
Other cash receipts relating VII.78 (1) 41,759,657.98 27,345,841.54
to operating activities
Sub-total of cash inflows from 2,272,523,350.97 1,513,374,622.42
operating activities
Cash payments for goods 715,847,620.70 644,518,449.15
purchased and services received
Net increase in loans and
advances to customers
Net increase in balance with
the central bank and due from
banks and other financial
institution
Cash payments for claims
and policyholders’ benefits under
direct insurance contracts
Net increase in placements
with banks and other financial
institutions
Cash payments for interest,
fees and commissions
Cash payments for insurance
policyholder dividends
Cash payments to and on 237,264,313.77 185,549,039.74
behalf of employees
Payments of various types of 208,417,814.87 179,671,843.97
taxes
Other cash payments relating VII.78 (2) 844,818,022.81 467,070,910.68
to operating activities
Sub-total of cash outflows from 2,006,347,772.15 1,476,810,243.54
operating activities
Net cash flow from operating 266,175,578.82 36,564,378.88
activities
II. Cash flows from investing
activities:
Cash receipts from disposals 211,450,000.00
and recovery of investments
Cash receipts from 4,145,309.14
investment income
Net cash receipts from 1,000.00
disposals of fixed assets,
intangible assets and other
long-term assets
Net cash receipts from
disposals of subsidiaries and other
business entities
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2021 Semi-annual Report
Other cash receipts relating
to investing activities
Sub-total of cash inflows from 1,000.00 215,595,309.14
investing activities
Cash payments to acquire or 98,334,802.52 42,817,591.52
construct fixed assets, intangible
assets and other long-term assets
Cash payments to acquire 31,206,800.00 66,580,000.00
investments
Net increase in pledged loans
receivables
Net cash payments for
acquisitions of subsidiaries and
other business units
Other cash payments relating VII.78 (4) 61,087,857.19 1,579,710.89
to investing activities.
Sub-total of cash outflows from 190,629,459.71 110,977,302.41
investing activities
Net cash flow from investing -190,628,459.71 104,618,006.73
activities
III. Cash flows from financing
activities:
Cash receipts from capital 450,000.00 976,300.00
contributions
Including: cash receipts from 450,000.00 976,300.00
capital contributions from
minority owners of subsidiaries
Cash receipts from 200,000,000.00 299,000,000.00
borrowings
Other cash receipts relating
to financing activities
Sub-total of cash inflows from 200,450,000.00 299,976,300.00
financing activities
Cash repayments of 299,000,000.00 212,186,065.10
borrowings
Cash payments for 149,594,422.10 118,930,785.34
distribution of dividends or profits
or settlement of interest expenses
Including: payments for
distribution of dividends or profits
to minority owners of subsidiaries
Other cash payments relating VII.78 (6) 486,631.52
to financing activities
Sub-total of cash outflows from 449,081,053.62 331,116,850.44
financing activities
Net cash flow from financing -248,631,053.62 -31,140,550.44
activities
IV. Impact of foreign exchange -396,595.34 -1,139,318.32
rate changes on cash and cash
equivalents
V. Net increase in cash and cash -173,480,529.85 108,902,516.85
equivalents
Add: Opening balance of 1,401,850,754.88 1,099,092,785.07
cash and cash equivalents
VI. Closing balance of cash and 1,228,370,225.03 1,207,995,301.92
cash equivalents
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2021 Semi-annual Report
Person in charge of the Company: HOU Juncheng Chief Financial Officer: WANG Li Head of the
Accounting Organization: WANG Li
Cash Flow Statement of the Parent Company
January to June, 2021
Unit: Yuan Currency: RMB
Item Note First half of 2021 First half of 2020
I. Cash flows from operating
activities:
Cash receipts from the sale 1,080,660,581.18 1,077,057,503.42
of goods and the rendering of
services
Receipts of tax refunds 2,938,756.09 3,677,812.11
Other cash receipts relating 68,370,736.09 34,759,684.89
to operating activities
Sub-total of cash inflows from 1,151,970,073.36 1,115,495,000.42
operating activities
Cash payments for goods 553,972,561.93 436,078,293.13
purchased and services received
Cash payments to and on 94,985,032.15 64,111,165.24
behalf of employees
Payments of various types 88,642,861.24 119,952,712.41
of taxes
Other cash payments 172,843,455.28 368,745,462.06
relating to operating activities
Sub-total of cash outflows from 910,443,910.60 988,887,632.84
operating activities
Net cash flow from operating 241,526,162.76 126,607,367.58
activities
II. Cash flows from investing
activities:
Cash receipts from disposals 506,383.08 210,000,000.00
and recovery of investments
Cash receipts from 4,145,309.14
investment income
Net cash receipts from
disposals of fixed assets,
intangible assets and other
long-term assets
Net cash receipts from
disposals of subsidiaries and
other business entities
Other cash receipts relating
to investing activities
Sub-total of cash inflows from 506,383.08 214,145,309.14
investing activities
Cash payments to acquire or 92,347,046.32 42,775,628.79
construct fixed assets, intangible
assets and other long-term assets
Cash payments to acquire 32,256,800.00 68,130,000.00
investments
Net cash payments for
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2021 Semi-annual Report
acquisitions of subsidiaries and
other business units
Other cash payments
relating to investing activities.
Sub-total of cash outflows from 124,603,846.32 110,905,628.79
investing activities
Net cash flow from investing -124,097,463.24 103,239,680.35
activities
III. Cash flows from financing
activities:
Cash receipts from capital
contributions
Cash receipts from 200,000,000.00 200,000,000.00
borrowings
Other cash receipts relating
to financing activities
Sub-total of cash inflows from 200,000,000.00 200,000,000.00
financing activities
Cash repayments of 200,000,000.00 85,130,289.87
borrowings
Cash payments for 148,641,547.10 117,856,762.75
distribution of dividends or
profits or settlement of interest
expenses
Other cash payments
relating to financing activities
Sub-total of cash outflows from 348,641,547.10 202,987,052.62
financing activities
Net cash flow from financing -148,641,547.10 -2,987,052.62
activities
IV. Impact of foreign exchange
rate changes on cash and cash
equivalents
V. Net increase in cash and -31,212,847.58 226,859,995.31
cash equivalents
Add: Opening balance of 484,019,222.50 255,868,964.43
cash and cash equivalents
VI. Closing balance of cash and 452,806,374.92 482,728,959.74
cash equivalents
Person in charge of the Company: HOU Juncheng Chief Financial Officer: WANG Li Head of the
Accounting Organization: WANG Li
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2021 Semi-annual Report
Consolidated Statement of Changes in Owners’ Equity
January to June, 2021
Unit: Yuan Currency: RMB
First half of 2021
Equity attributable to owners of the parent company
Paid-in Total
Item Other equity instruments Minority
capital Less: Other General owners’
Capital Special Surplus Retained interests
(or Treasury comprehensive risk Others Sub-total equity
Perpetual reserve reserve reserve profit
share Preferred Others shares income reserve
bonds
capital) stock
I. Closing 837,03 2,481,8
201,116 12,653,90 100,634 1,265,671 2,391,535 90,326,8
balance of the 4,836.6 -269,066.13 62,266.
,925.00 5.25 ,780.00 ,865.63 ,435.94 30.19
preceding year 9 13
Add: Changes
in accounting
policies
Corrections
of prior period
errors
Business
combination
involving
enterprises
under common
control
Others
II. Opening 837,03 2,481,8
201,116 12,653,90 100,634 1,265,671 2,391,535 90,326,8
balance of the 4,836.6 -269,066.13 62,266.
,925.00 5.25 ,780.00 ,865.63 ,435.94 30.19
current year 9 13
III. Changes
for the period
3,997,3 -5,291,97 81,297,12 90,189,81 -79,685,4 10,504,
(decrease is -396,595.34
13.48 1.65 7.86 7.65 45.01 372.64
indicated by
“-”)
(I) Total -396,595.34 226,101,3 225,704,7 -17,451,8 208,252
69 / 185
2021 Semi-annual Report
comprehensive 13.86 18.52 20.47 ,898.05
income
(II) Owners’
contributions 2,262,1 -5,291,97 7,554,090 700,000. 8,254,0
and reduction 18.91 1.65 .56 00 90.56
in capital
1. Common
stock -5,291,97 5,291,971 700,000. 5,991,9
contributed by 1.65 .65 00 71.65
owners
2. Capital
contribution
from holders
of other equity
instruments
3. Share-based
payment 2,262,1 2,262,118 2,262,1
recognized in 18.91 .91 18.91
owners’ equity
4. Others
-144,80
(III) Profit -144,804, -144,804,
4,186.0
distribution 186.00 186.00
0
1. Transfer to
surplus reserve
2. Transfer to
general risk
reserve
3.
-144,80
Distributions -144,804, -144,804,
4,186.0
to owners (or 186.00 186.00
0
shareholders)
4. Others
(IV) Transfers
within owners’
equity
1.
Capitalization
of capital
reserve
2.
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2021 Semi-annual Report
Capitalization
of surplus
reserve
3. Loss offset
by surplus
reserve
4. Retained
earnings
carried
forward from
changes in
defined benefit
plans
5. Retained
earnings
carried
forward from
other
comprehensive
income
6. Others
(V) Special
reserve
1. Transfer to
special reserve
in the current
period
2. Amount
utilized in the
current period
1,735,1 1,735,194 -62,933,6 -61,198,
(VI) Others
94.57 .57 24.54 429.97
VI. Closing 841,03 2,492,3
201,116 7,361,933 100,634 1,346,968 2,481,725 10,641,3
balance of the 2,150.1 -665,661.47 66,638.
,925.00 .60 ,780.00 ,993.49 ,253.59 85.18
current period 7 77
Item First half of 2020
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2021 Semi-annual Report
Equity attributable to owners of the parent company
Paid-in Other equity instruments Total
Minority
capital Less: Other General owners’
Capital Special Surplus Retained interests
(or Treasury comprehensive risk Others Sub-total equity
Perpetual reserve reserve reserve profit
share Preferred Others shares income reserve
bonds
capital) stock
I. Closing 201,26 835,35 15,769,05 -212,628.22 100,634 908,411,6 2,029,687 40,370,1 2,070,0
balance of the 9,560.0 3,615.4 1.20 ,780.00 07.62 ,883.68 59.89 58,043.
preceding year 0 8 57
Add: Changes
in accounting
policies
Corrections
of prior period
errors
Business
combination
involving
enterprises
under common
control
Others
II. Opening 201,26 835,35 15,769,05 -212,628.22 100,634 908,411,6 2,029,687 40,370,1 2,070,0
balance of the 9,560.0 3,615.4 1.20 ,780.00 07.62 ,883.68 59.89 58,043.
current year 0 8 57
III. Changes for 13,104, -136,681.49 60,017,98 72,986,03 -4,857,9 68,128,
the period 738.35 0.36 7.22 70.57 066.65
(decrease is
indicated by
“-”)
(I) Total -136,681.49 178,767,0 178,630,3 -5,082,6 173,547
comprehensive 20.76 39.27 17.50 ,721.77
income
(II) Owners’ 5,103,3 5,103,364 5,103,3
contributions 64.67 .67 64.67
and reduction
in capital
1. Common
stock
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2021 Semi-annual Report
contributed by
owners
2. Capital
contribution
from holders of
other equity
instruments
3. Share-based
payment 5,103, 5,103,36 5,103,
recognized in 364.67 4.67 364.67
owners’ equity
4. Others
-118,749, -118,749, -118,74
(III) Profit
040.40 040.40 9,040.4
distribution
0
1. Transfer to
surplus reserve
2. Transfer to
general risk
reserve
3. Distributions -118,749, -118,749, -118,74
to owners (or 040.40 040.40 9,040.4
shareholders) 0
4. Others
(IV) Transfers
within owners’
equity
1.
Capitalization
of capital
reserve
2.
Capitalization
of surplus
reserve
3. Loss offset
by surplus
reserve
4. Retained
earnings
carried forward
73 / 185
2021 Semi-annual Report
from changes
in defined
benefit plans
5. Retained
earnings
carried forward
from other
comprehensive
income
6. Others
(V) Special
reserve
1. Transfer to
special reserve
in the current
period
2. Amount
utilized in the
current period
8,001,3 8,001,373 224,646. 8,226,0
(VI) Others
73.68 .68 93 20.61
VI. Closing 201,26 848,45 15,769,05 -349,309.71 100,634 968,429,5 2,102,673 35,512,1 2,138,1
balance of the 9,560.0 8,353.8 1.20 ,780.00 87.98 ,920.90 89.32 86,110.
current period 0 3 22
Person in charge of the Company: HOU Juncheng Chief Financial Officer: WANG Li Head of the Accounting Organization: WANG Li
Statement of Changes in Owners Equity of the Parent Company
January to June, 2021
Unit: Yuan Currency: RMB
First half of 2021
Paid-in Other equity instruments Less: Other Total
Item Capital Special Surplus Retained
capital (or Preferred Perpetual Treasury comprehensive owners’
Others reserve reserve reserve profit
share shares income equity
stock bonds
74 / 185
2021 Semi-annual Report
capital)
I. Closing balance of the 201,116,92 837,075,42 12,653,905 100,634,7 1,134,989, 2,261,163,
preceding year 5.00 5.32 .25 80.00 843.29 068.36
Add: Changes in accounting
policies
Corrections of prior period
errors
Others
II. Opening balance of the 201,116,92 837,075,42 12,653,905 100,634,7 1,134,989, 2,261,163,
current year 5.00 5.32 .25 80.00 843.29 068.36
III. Changes for the period -5,291,971. 24,482,80 30,706,317
931,539.28
(decrease is indicated by “-”) 65 6.40 .33
(I) Total comprehensive 169,286,9 169,286,99
income 92.40 2.40
(II) Owners’ contributions and -5,291,971. 5,999,268.
707,296.73
reduction in capital 65 38
1. Common stock contributed -5,291,971. 5,291,971.
by owners 65 65
2. Capital contribution from
holders of other equity
instruments
3. Share-based payment
707,296.73 707,296.73
recognized in owners’ equity
4. Others
-144,804,1 -144,804,1
(III) Profit distribution
86.00 86.00
1. Transfer to surplus reserve
2. Distributions to owners (or -144,804,1 -144,804,1
shareholders) 86.00 86.00
3. Others
(IV) Transfers within owners’
equity
1. Capitalization of capital
reserve
2. Capitalization of surplus
reserve
3. Loss offset by surplus
reserve
4. Retained earnings carried
forward from changes in
75 / 185
2021 Semi-annual Report
defined benefit plans
5. Retained earnings carried
forward from other
comprehensive income
6. Others
(V) Special reserve
1. Transfer to special reserve
in the current period
2. Amount utilized in the
current period
(VI) Others 224,242.55 224,242.55
VI. Closing balance of the 201,116,92 838,006,96 7,361,933. 100,634,7 1,159,472, 2,291,869,
current period 5.00 4.60 60 80.00 649.69 385.69
First Half of 2020
Paid-in Other equity instruments Less: Other Total
Item capital (or Capital Special Surplus Retained
Preferred Perpetual Treasury comprehensive owners’
share Others reserve reserve reserve profit
shares income equity
capital) stock bonds
I. Closing balance of the 201,269,56 834,592,13 15,769,051 100,634, 778,293,3 1,899,020,
preceding year 0.00 3.74 .20 780.00 40.18 762.72
Add: Changes in accounting
policies
Corrections of prior period
errors
Others
II. Opening balance of the 201,269,56 834,592,13 15,769,051 100,634, 778,293,3 1,899,020,
current year 0.00 3.74 .20 780.00 40.18 762.72
III. Changes for the period 16,147,546 58,789,90 74,937,451
(decrease is indicated by “-”) .14 5.76 .90
(I) Total comprehensive 177,538,9 177,538,94
income 46.16 6.16
(II) Owners’ contributions 5,103,364. 5,103,364.
and reduction in capital 67 67
1. Common stock contributed
by owners
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2021 Semi-annual Report
2. Capital contribution from
holders of other equity
instruments
3. Share-based payment 5,103,364. 5,103,364.
recognized in owners’ equity 67 67
4. Others
-118,749,0 -118,749,0
(III) Profit distribution
40.40 40.40
1. Transfer to surplus reserve
2. Distributions to owners (or -118,749,0 -118,749,0
shareholders) 40.40 40.40
3. Others
(IV) Transfers within owners’
equity
1. Capitalization of capital
reserve
2. Capitalization of surplus
reserve
3. Loss offset by surplus
reserve
4. Retained earnings carried
forward from changes in
defined benefit plans
5. Retained earnings carried
forward from other
comprehensive income
6. Others
(V) Special reserve
1. Transfer to special reserve
in the current period
2. Amount utilized in the
current period
11,044,181 11,044,181
(VI) Others
.47 .47
VI. Closing balance of the 201,269,56 850,739,67 15,769,051 100,634, 837,083,2 1,973,958,
current period 0.00 9.88 .20 780.00 45.94 214.62
Person in charge of the Company: HOU Juncheng Chief Financial Officer: WANG Li Head of the Accounting Organization: WANG Li
77 / 185
2021 Semi-annual Report
III. Basic Information of the Company
1. Company profile
√ Applicable N/A
Proya Cosmetics Co., Ltd. (the “Company”), formerly known as Proya (Huzhou) Cosmetics Co.,
Ltd., was registered in Wuxing Branch of Huzhou Municipal Administration for Industry and Commerce
on May 24, 2006. Headquartered in Hangzhou, Zhejiang Province, the Company now holds its business
license with the Unified Social Credit Code being 91330100789665033F, having its current registered
capital amounting to RMB201.1169 million, and 201,116,925 shares (par value of RMB1 per share) in
aggregate, comprising 454,160 A shares as restricted outstanding shares, and 200,662,765 A shares as
unrestricted outstanding shares, which were listed for trading on SSE on November 15, 2017.
The Company is in the industry of Cosmetics stores, primarily engaged in R&D, production and
sales of cosmetics, the main products:. Cosmetics.
The financial statements herein have been approved for disclosure by the 20th meeting of the
second Board of Directors on August 24, 2021.
2. Scope of consolidated financial statements
√ Applicable N/A
42 subsidiaries including Hangzhou Proya Trade Co., Ltd., Hanya (Huzhou) Cosmetics Co., Ltd.,
Zhejiang Meili Valley E-commerce Co., Ltd., Huzhou Chuangdai E-commerce Co., Ltd., Leqing Laiya
Trading Co., Ltd. and Hapsode (Hangzhou) Cosmetics Co., Ltd. have been included by the Company
into the scope of consolidated financial statements in the Reporting Period. For details, please refer to
the descriptions of VIII “Changes in the Consolidation Scope” and IX “Interests in Other Entities” in
Section X Financial Report hereof.
IV. Basis of Preparation of Financial Statements
1. Basis of preparation
The Company’s financial statements are prepared on a going-concern basis.
2. Going concern
√ Applicable N/A
The Company has involved in no events or circumstances that may cast significant doubt upon its
ability to continue as a going concern within 12 months from the end of the Reporting Period.
V. Significant Accounting Policies and Accounting Estimates
Prompts on specific accounting policies and accounting estimates:
√ Applicable N/A
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2021 Semi-annual Report
Please refer to “44. Changes in significant accounting policies and accounting estimates” in “V.
Significant Accounting Policies and Accounting Estimates” in “Section X Financial Report” hereof.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of the
Accounting Standards for Business Enterprises, truly and completely reflecting the Company’s financial
position, operating results, and cash flows, among others.
2. Accounting period
The accounting year of the Company commences from January 1 and ends on December 31 in each
calendar year.
3. Operating cycle
√ Applicable N/A
The Company has a relatively short operating cycle, and determines the liquidity of assets and
liabilities on the basis of 12 months.
4. Functional currency
The Company adopts RMB as its functional currency.
5. Accounting treatment of business combinations involving enterprises under common control
and business combinations involving enterprises not under common control
√ Applicable N/A
1. Accounting treatment of business combinations involving entities under common control
Assets and liabilities that are obtained by the Company in a business combination shall be
measured at their carrying amounts in the consolidated financial statements of the ultimate controller at
the combination date as recorded by the acquiree. The difference between the carrying amount of the
owners’ equity of the acquiree as stated in the consolidated financial statements of the ultimate
controller and the carrying amount of the total consideration paid or total par value of the shares issued
in connection with the combination is treated as an adjustment to the capital reserve. In case the capital
reserve is insufficient to absorb the difference, the remaining balance is adjusted against the retained
earnings.
2. Accounting treatment of business combinations involving entities not under common control
Where the cost of the combination exceeds the Company’s share of the fair value of the acquiree’s
identifiable net assets, the difference is recognized as goodwill on the date of acquisition. Where the cost
of combination is lower than the Company’s share of the fair value of the acquiree’s identifiable net
79 / 185
2021 Semi-annual Report
assets, the Company reviews the measurement of the fair value of each of the identifiable assets,
liabilities and contingent liabilities acquired from the acquiree and the cost of combination, and if the
cost of combination as reviewed is still lower than the Company’s share of the fair value of the
acquiree’s identifiable net assets, the difference is recognized in profit or loss for the current period.
6. Method for preparation of financial statements
√ Applicable N/A
The parent company includes all of its controlled subsidiaries in its consolidated financial
statements. The consolidated financial statements are prepared by the parent company in accordance
with the Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements, on
the basis of the respective financial statements of the parent company and its subsidiaries, by reference
to other relevant data.
7. Classification of joint arrangements and accounting treatment of joint operations
√ Applicable N/A
1. Joint arrangements are classified into joint operations and joint ventures.
2. When the Company is a party to a joint operation, it recognizes the following items relating to its
interest in the joint operation:
(1) The assets individually held by the Company, and the Company’s share of the assets held
jointly;
(2) The liabilities incurred individually by the Company, and the Company’s share of the liabilities
incurred jointly;
(3)The Company’s revenue from the sale of its share of output of the joint operation;
(4) The Company’s share of revenue from the sale of assets by the joint operation; and
(5) The expenses incurred individually by the Company, and the Company’s share of the expenses
incurred jointly.
8. Recognition of cash and cash equivalents
The cash listed in the cash flow statement refers to the cash on hand and deposits that are available
for payment at any time. The cash equivalents refer to the short-term and highly liquid investments held
by the enterprise that are readily convertible to known amounts of cash and subject to an insignificant
risk of changes in value.
9. Foreign currency transactions and translation of foreign currency financial statements
√ Applicable N/A
1. Translation of foreign currency transactions
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2021 Semi-annual Report
Upon initial recognition, foreign currency transactions are translated into RMB at the approximate
rate of spot rate on the transaction dates. On the balance sheet date, monetary items denominated in
foreign currencies are translated into RMB using the spot exchange rates on the balance sheet date.
Exchange differences arising from such translations are recognized in profit or loss for the current period,
except for those attributable to foreign currency borrowings that have been taken out specifically for the
acquisition or construction of qualifying assets and accrued interest. Non-monetary items denominated
in foreign currencies that are measured at historical cost are translated at the approximate rate of spot
rate on the transaction dates, without adjusting the amounts in RMB. Non-monetary items denominated
in foreign currencies that are measured at fair value are translated using the foreign exchange rates
prevailing on the dates the fair value was determined, and exchange differences arising from such
translations are recognized in profit or loss for the current period or other comprehensive income.
2. Translation of foreign currency financial statements
The asset and liability items in the balance sheet are translated at the spot exchange rates on the
balance sheet date. The owners’ equity items other than “retained profits” are translated at the spot
exchange rates on the transaction dates. The income and expense items in the income statements are
translated at the approximate spot exchange rates on the transaction dates. Exchange differences arising
from such translations are recognized in other comprehensive income.
10. Financial instruments
√ Applicable N/A
1. Classification of financial assets and financial liabilities
Upon initial recognition, financial assets are classified into: (1) financial assets at amortized cost; (2)
financial assets at fair value through other comprehensive income; and (3) financial assets at fair value
through profit or loss.
Upon initial recognition, financial liabilities are classified into: (1) financial liabilities at fair value
through profit or loss; (2) financial liabilities arising from the transfer of financial assets not meeting the
criteria for derecognition or continuing involvement in the financial assets transferred; (3) financial
guarantee contracts not falling under items (1) and (2), and loan commitments not falling under item (1)
at interest rate below the market level; and (4) financial liabilities at amortized cost.
2.Recognition, measurement and derecognition of financial assets and financial liabilities
(1) Recognition and initial measurement of financial assets and financial liabilities
When the Company becomes a party to a financial instrument contract, a financial asset or liability
is recognized. Financial assets and liabilities are initially measured at fair value. Transaction costs
relating to financial assets or liabilities at fair value through profit or loss are directly recognized in
profit or loss for the current period. Transaction costs relating to other kinds of financial assets or
liabilities are included in their initially recognized amount. However, where the accounts that do not
contain any significant financing component or are recognized by the Company without taking into
consideration the significant financing components under the contracts with a term of less than one year
81 / 185
2021 Semi-annual Report
upon initial recognition are initially measured at transaction price defined in the Accounting Standard for
Business Enterprises No. 14 —Revenue.
(2) Subsequent measurement of financial assets
1) Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effective
interest method. Gains or losses on financial assets at amortized cost that do not belong to any hedging
relationship are recognized in profit or loss for the current period upon derecognition, reclassification,
amortization using the effective interest method or recognition of impairment.
2)Investments in debt instruments at fair value through other comprehensive income
Investments in debt instruments at fair value through other comprehensive income are subsequently
measured at fair value. Interest, impairment losses or gains and exchange gains or losses calculated
using the effective interest method are recognized in profit or loss for the current period, and other gains
or losses are recognized in other comprehensive income. On derecognition, the cumulative gain or loss
previously included in other comprehensive income is removed out from other comprehensive income
and included in profit or loss for the current period.
3)Investments in equity instruments at fair value through other comprehensive income
Investments in debt instruments at fair value through other comprehensive income are subsequently
measured at fair value. Dividends received (other than those received as recovery of investment cost) are
recognized in profit or loss for the current period, and other gains or losses are recognized in other
comprehensive income. On derecognition, the cumulative gain or loss previously included in other
comprehensive income is removed out from other comprehensive income and included in retained
earnings.
4) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are subsequently measured at fair value. Gains or
losses thereon, including interest and dividend income, are recognized in profit or loss for the current
period, except the financial assets belonging to any hedging relationship.
(3)Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading
(including derivatives classified as financial liabilities), and financial liabilities directly designated as at
fair value through profit or loss. Such financial liabilities are subsequently measured at fair value.
Changes in the fair value of financial liabilities designated as at fair value through profit or loss arising
out of changes in the Company’s credit risk are recognized in other comprehensive income, unless such
treatment will result in or increase any accounting mismatch in profit or loss. Other gains or losses on
such financial liabilities, including interest expenses and changes in fair value not arising out of changes
in the Company’s credit risk, are recognized in profit or loss for the current period, except the financial
liabilities belonging to any hedging relationship. Upon derecognition, the aggregate gains or losses
previously recognized in other comprehensive income are transferred to retained earnings.
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2021 Semi-annual Report
2)Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for
derecognition or continuing involvement in the financial assets transferred
Such financial liabilities are measured in accordance with the Accounting Standards for Business
Enterprises No. 23 - Transfer of Financial Assets.
3) Financial guarantee contracts not falling under items 1) and 2) above, and loan commitments not
falling under item 1) above at below-market interest rate
Such financial liabilities are subsequently measured at the higher of ① provision for impairment
losses determined according to the policy for impairment of financial instruments; and ② balance of the
initially recognized amount after deduction of the accumulated amortization determined in accordance
with Accounting Standard for Business Enterprises No. 14 - Revenue.
4) Financial liabilities at amortized cost
Such financial liabilities are measured at amortized cost using the effective interest method. Gains
or losses on financial liabilities at amortized cost that do not belong to any hedging relationship are
recognized in profit or loss for the current period upon derecognition or amortization using the effective
interest method.
(4) Derecognition of financial assets and financial liabilities
1)Financial assets are derecognized when:
①The contractual right to receive cash flows from the financial assets has expired; or
② The financial assets have been transferred and such transfer meets the criteria for derecognition
of financial assets as set forth in the Accounting Standards for Business Enterprises No. 23 - Transfer of
Financial Assets.
2) A financial liability (or part thereof) is derecognized when all or part of the outstanding
obligations thereon have been discharged.
3. Determination and measurement of financial assets transferred
When a financial asset of the Company is transferred, if substantially all the risks and rewards
incidental to the ownership of the financial asset have been transferred, the financial asset is
derecognized, and the rights and obligations incurred or retained in such transfer are separately
recognized as assets or liabilities. If the Company retains substantially all the risks and rewards of
ownership of a financial asset, the Company shall not derecognize the financial asset. If the Company
neither transferred nor retained a substantial portion of all risks and rewards incidental to the ownership
of the financial asset, then: (1) if the Company does not retain control over the financial asset, the
financial asset is derecognized, and the rights and obligations incurred or retained in such transfer are
separately recognized as assets or liabilities; and (2) if the Company retains control over the financial
asset, the financial asset continues to be recognized to the extent of the Company’s continuing
involvement in the financial asset transferred, and a corresponding liability is recognized.
If an entire transfer of a financial asset meets the criteria for derecognition, the difference between
(1) the carrying amount of the financial asset transferred on the date of derecognition; and (2) the sum of
the consideration received from the transfer and the portion of the cumulative amount of changes in fair
83 / 185
2021 Semi-annual Report
value directly recorded as other comprehensive income originally that corresponds to the part
derecognized (where the financial asset transferred is an investment in debt instruments at fair value
through other comprehensive income) is recognized in profit or loss for the current period. If part of a
financial asset is transferred and the part transferred entirely meets the criteria for derecognition, the
total carrying amount of the financial asset immediately prior to the transfer is allocated between the part
derecognized and the part not derecognized in proportion to their relative fair value on the date of
transfer, and the difference between (1) the carrying amount of the part derecognized and (2) the sum of
the consideration received from the transfer of the part derecognized and the portion of the cumulative
amount of changes in fair value directly recorded as other comprehensive income originally that
corresponds to the part derecognized (where the financial asset transferred is an investment in debt
instruments at fair value through other comprehensive income) is recognized in profit or loss for the
current period.
4. Determination of fair value of financial assets and financial liabilities
The Company adopts the valuation techniques applicable to the current situations and with
sufficient data available and support of other information to determine the fair value of financial assets
and financial liabilities. The Company classifies the inputs used by the valuation techniques in the
following levels and uses them in turn:
(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset or
liability available on the date of measurement;
(2) Level 2 inputs: inputs other than those included within Level 1 that are observable directly or
indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for
identical or similar assets or liabilities in inactive markets, observable inputs other than quoted prices
(such as interest rate and yield curves observable during regular intervals of quotation), and inputs
validated by the market;
(3) Level 3 inputs: inputs that are unobservable, including interest rate or stock volatility that
cannot be directly observed or validated by observable market data, future cash flows from retirement
obligation incurred in business combinations, and financial forecasts made using own data.
5. Impairment of financial instruments
(1) Measurement and accounting treatment of impairment of financial instruments
The Company determines the impairment and assesses provision for impairment losses of financial
assets at amortized cost, investments in debt instruments at fair value through other comprehensive
income, lease receivable, loan commitments other than financial liabilities designated at fair value
through profit or loss, and financial guarantee contracts other than financial liabilities designated at fair
value through profit or loss and financial liabilities arising as a result of the transfer of financial assets
not meeting the criteria for derecognition or continuing involvement in the financial assets transferred,
on the basis of expected credit losses.
Expected credit loss is the weighted average of credit losses on financial instruments taking into
account the possibility of default. Credit loss is the present value of the difference between all
84 / 185
2021 Semi-annual Report
contractual cash flows receivable under the contract and estimated future cash flows discounted at the
original effective interest rate, i.e., the present value of all cash shortage, wherein the Company’s
purchased or originated financial assets that have become credit impaired are discounted at their
credit-adjusted effective interest rate.
With respect to purchased or originated financial assets that have become credit impaired, on the
balance sheet date, the Company recognizes a loss allowance equal to the cumulative amount of changes
in lifetime expected credit losses since initial recognition.
With respect to accounts receivable and contract assets that arise from the transactions regulated
under the Accounting Standard for Business Enterprises No. 14 - Revenue and do not contain any
significant financing component or are recognized by the Company without taking into account the
significant financing components under the contracts with a term of less than one year, the Company
uses the simple measurement method and recognizes a loss allowance equal to the lifetime expected
credit losses.
With respect to lease receivable, as well as accounts receivable and contract assets that arise from
the transactions regulated under the Accounting Standard for Business Enterprises No. 14 - Revenue
containing significant financing components, the Company uses the simple measurement method and
recognizes a loss allowance equal to the lifetime expected credit losses.
With respect to financial assets not using the measurement methods stated above, on each balance
sheet date, the Company assesses whether the credit risk has increased significantly since initial
recognition, and recognizes a loss allowance equal to the lifetime expected credit losses if the credit risk
has increased significantly since initial recognition, or to the expected credit losses within the next 12
months if the credit risk has not increased significantly since initial recognition.
The Company uses reasonable and supportable information, including forward-looking information,
and compares the possibility of default on the balance sheet date with the possibility of default upon
initial recognition, to determine whether the credit risk of the financial instruments has increased
significantly since initial recognition.
On the balance sheet date, if the Company determines that a financial instrument has low credit risk,
the Company assumes that its credit risk has not increased significantly since initial recognition.
The Company assesses expected credit risk and measures expected credit losses of financial
instruments individually or by portfolio. When assessing the financial instruments by portfolio, the
Company divides the financial instruments into different portfolio according to their common risk
characteristics.
At each balance sheet date, the Company re-assesses the expected credit losses, with the amount of
increase in or reversal of loss allowance recognized in profit or loss for the current period as impairment
losses or gains. With respect to a financial asset at amortized cost, its carrying amount recorded in the
balance sheet is written off against the loss allowance. With respect to an investment in debt instruments
at fair value through other comprehensive income, the Company recognizes the loss allowance in other
comprehensive income, without reducing its carrying amount.
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6. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not
offset. However, a financial asset and a financial liability shall be offset, and the net amount presented in
the balance sheet when both of the following conditions are satisfied: (1) the Company has a legal right
to set off the recognized amounts and the legal right is currently enforceable; and (2) the Company
intends either to settle on a net basis, or to realize the financial asset and settle the financial liability
simultaneously.
In accounting for a transfer of a financial asset that does not qualify for derecognition, the
Company do not offset the transferred financial asset and the associated liability.
11. Notes receivable
Determination and accounting treatment of expected credit losses for notes receivable
Applicable √ N/A
12. Accounts receivable
Determination and accounting treatment of expected credit losses for accounts receivable
√ Applicable N/A
1) Measurement of expected credit losses by portfolio: the expected credit losses are calculated by
reference to historic credit loss experience, and preparation of the comparison table of the age of
accounts receivable and rate of lifetime expected credit loss, taking into account the current situations
and prediction of future economic conditions.
2) Accounts receivable - comparison table of the age of accounts receivable and rate of lifetime
expected credit loss
Accounts receivable
Aging
Rate of expected credit loss (%)
Within 1 year (inclusive, the same below) 5
1-2 years 30
2-3 years 50
More than 3 years 100
13. Receivables financing
√ Applicable N/A
Measurement of expected credit losses by portfolio: the expected credit losses are calculated
according to the default risk exposure and rate of lifetime expected credit loss by reference to historic
credit loss experience, and taking into account the current situations and prediction of future economic
conditions.
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14. Other receivables
Determination and accounting treatment of expected credit losses for other receivables
√ Applicable N/A
Evaluation of expected credit risks and measurement of expected credit losses by portfolio: the
expected credit losses are calculated according to the default risk exposure and the expected credit loss
rate of the period within the future 12 months or the lifetime by reference to historic credit loss
experience, and taking into account the current situations and prediction of future economic conditions.
15. Inventories
√ Applicable N/A
1. Classification of inventories
Inventories include finished goods or merchandise held by the Company for sale in the ordinary
course of business, or work in progress in the process of production for such sale, or materials or
supplies to be consumed in the production process or in the rendering of services.
2. Pricing methods of inventories in transit
Inventories in transit are priced using the moving weighted average method.
3. Determination basis of net realizable value of inventories
On the balance sheet date, inventories are measured at the lower of cost and net realizable value,
and the provision for decline in value of inventories is determined by the difference between the higher
cost and the net realizable value of a single inventory. For inventories available for sales, in the ordinary
production and operation process, their realizable net value is determined at the estimated selling price
of these inventories less the estimated costs necessary to make the sale and relevant taxes; for the
inventories that need to be processed, in the ordinary production and operation process, their realizable
net value is determined at the estimated selling price of finished products less the estimated costs of
completion and the estimated costs necessary to make the sale and relevant taxes. On the balance sheet
date, where a part of an inventory is subject to the contract price agreement and other parts of the same
inventory has no such agreement, their realizable net value is determined separately, and by comparing
them with their corresponding cost, the amount made for or reversal of the provision for decline in value
of inventories is determined separately.
4. Inventory systems for inventories
A perpetual inventory system is adopted for the inventories.
5. Amortization of low-value consumables and packing materials
(1)Low-value consumables
The low-value consumables are amortized using immediate write-off method.
(2) Packing materials
The packing materials are amortized using immediate write-off method.
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16. Contract assets
(1). Methods and standards for recognizing contract assets
√ Applicable N/A
The Company presents contract assets or liabilities in the balance sheet based on the relationship
between performance obligations and customer payments. The Company shall set off the contract assets
and contract liabilities under the same contract and present them on a net basis.
The Company presents its owned right to unconditionally (that is, only depending on the passage of
time) receive consideration from customers as the accounts receivable, and the right to receive the
consideration for which the goods that have been transferred to customers (that is, depending on factors
other than the passage of time) as the contract assets.
(2). Determination and accounting treatment of expected credit losses for contract assets
Applicable √ N/A
17. Held-for-sale assets
Applicable √ N/A
18. Debt investments
Determination and accounting treatment of expected credit losses for debt investments
Applicable √ N/A
19. Other debt investments
Determination and accounting treatment of expected credit losses for other debt investments
Applicable √ N/A
20. Long-term receivables
Determination and accounting treatment of expected credit losses for long-term receivables
Applicable √ N/A
21. Long-term equity investments
√ Applicable N/A
1. Judgment criteria of joint control and significant influence
Joint control is the agreed sharing of control over an arrangement, and the relevant activities of
such arrangement must be decided upon the unanimous consent of the parties sharing control.
Significant influence is the power of the investing enterprise to participate in the financial and operating
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policy decisions of an investee, but is not control or joint control with other parties over the
establishment of those policies.
2.Determination of investment cost
(1) In case of an equity investment acquired through a business combination involving entities
under common control, if the acquirer pays consideration for the business combination by cash, transfer
of non-monetary assets, assumption of liabilities or issuance of equity securities, the initial investment
cost of the long-term equity investment is the Company’s share of the carrying amount of the owners’
equity of the acquiree in the consolidated financial statements of the ultimate controller on the date of
combination. The difference between the initial investment cost of the long-term equity investment and
the carrying amount of the consideration paid for the combination or the total par value of the shares
issued (as applicable) is treated as an adjustment to the capital reserve. In case the capital reserve is
insufficient to absorb the difference, the remaining balance is adjusted against the retained earnings.
In case of a long-term equity investment acquired through a business combination involving entities
under common control and through multiple transactions by steps, the Company judges whether they
constitute a “package deal” or not. If they belong to a “package deal”, the Company accounts for all
transactions as one transaction to acquire control. If such transactions do not constitute a “package deal”,
the initial investment cost is the Company’s post-combination share of the carrying amount of the
owners’ equity of the acquiree in the consolidated financial statements of the ultimate controller on the
date of combination; The difference between the initial investment cost of the long-term equity
investment on the date of combination and the sum of the carrying amount of long-term equity
investment before the combination and the carrying amount of the consideration paid for acquisition of
the additional shares on the date of combination is adjusted against the capital reserve. In case the capital
reserve is insufficient to absorb the difference, the remaining balance is adjusted against the retained
earnings.
(2) In case of an equity investment acquired through a business combination not involving
enterprises under common control, the initial investment cost is the fair value of the carrying amount of
the consideration paid for the combination on the date of acquisition.
With respect to a long-term equity investment acquired through a business combination not
involving enterprises under common control that is achieved through multiple transactions by steps, the
accounting treatment thereof in the separate financial statements is different from that in the
consolidated financial statements as stated below:
1) In the separate financial statements, the initial investment cost for which the Company changes
to the cost method is the sum of the carrying amount of the long-term equity investment originally held
and the new investment cost.
2) In the consolidated financial statements, the Company judges whether the transactions constitute
a “package deal” or not. If they belong to a “package deal”, the Company accounts for all transactions as
one transaction to acquire control. If such transactions do not constitute a “package deal”, the Company
re-measures the fair value of the equity held in the acquiree prior to the date of acquisition, and records
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the difference between the fair value and the carrying amount as investment income for the current
period; if the equity held in the acquiree prior to the date of acquisition involves other comprehensive
income under equity method, such other comprehensive income is transferred to the income of the
period in which the date of acquisition falls, except for other comprehensive income arising from
re-measurement by the investee of changes in net liabilities or net assets of defined benefit plans.
(3) In case of an equity investment not acquired through business combination, the initial
investment cost is the purchase price actually paid if it is acquired by cash, or the fair value of the equity
securities issued if it is acquired through issuance of equity securities, or is determined in accordance
with the Accounting Standards for Business Enterprises No. 12 - Debt Restructuring if it is acquired
through debt restructuring, or in accordance with the Accounting Standards for Business Enterprises No.
7 - Exchange of Non-monetary Assets if it is acquired through exchange of non-monetary assets.
3. Subsequent measurement and recognition of profit of loss
Long-term equity investments in investees are measured using the cost method. Long-term equity
investments in associates and joint ventures are measured using the equity method.
4. Disposal of investment in a subsidiary through multiple transactions by steps until loss of control
over the subsidiary
(1) Separate financial statements
The difference between the carrying amount of the equity disposed of and the proceeds of disposal
actually received is recognized in profit or loss for the current period. If the remaining equity empowers
the Company to exercise significant influence or joint control over the investees, the remaining equity is
accounted for using the equity method; if the remaining equity does not empower the Company to
exercise control, joint control or significant influence over the investees, the remaining equity is
accounted for in accordance with the Accounting Standards for Business Enterprises No. 22 -
Recognition and Measurement of Financial Instruments.
(2)Consolidated financial statements
1)Disposal of investment in a subsidiary through multiple transactions by steps until loss of control
over the subsidiary which do not constitute a “package deal”
Prior to the loss of control, the difference between the proceeds from disposal and the share owned
by the Company in the net assets of the subsidiary in relation to the long-term equity investment
disposed of that is calculated continuously from the date of acquisition or combination is adjusted
against the capital reserve (capital premium). In case the capital premium is insufficient to absorb the
difference, the remaining balance is adjusted against the retained earnings.
When losing control over an original subsidiary, the remaining equity is re-measured at its fair
value on the date of loss of control. The sum of the consideration received from the disposal of the
equity and the fair value of the remaining equity, net of the share owned by the Company in the net
assets of the subsidiary in relation to the long-term equity investment disposed of as calculated
continuously from the date of acquisition or combination according to the previous shareholding ratio, is
recognized in the investment income for the period in which the control is lost, and the goodwill is
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reduced accordingly. Other comprehensive income relating to the equity investment in the original
subsidiary should be transferred to the investment income for the period in which the control is lost.
2)Disposal of investment in a subsidiary through multiple transactions by steps until loss of control
over the subsidiary which constitute a “package deal”
The Company accounts for such transactions as one transaction to dispose of and lose its control
over the subsidiary. However, the difference between the proceeds from each disposal before loss of
control and the share owned by the Company in the net assets of the subsidiary in relation to the
investment disposed of is recognized in other comprehensive income in the consolidated financial
statements, which is wholly transferred to the profit or loss in the period in which the control is lost.
22. Investment properties
(1). Measured at cost
1. The investment properties include land use rights that have been leased out, land use rights that
are held and read to be transferred after appreciation and buildings that have been leased out.
2. Investment properties are initially measured at cost, subsequently measured using the cost model,
and depreciated or amortized by following the same policies as those of fixed assets and intangible
assets.
23. Fixed assets
(1). Criteria for recognition
√Applicable □N/A
Fixed assets are tangible assets held for production of goods, rendering of service, lease or
operation and management with a useful life of more than one accounting year. A fixed asset is
recognized if the economic benefits relating to it are very likely to flow to the Company and its cost can
be reliably measured.
(2). Method of depreciation
√Applicable □N/A
Depreciation Depreciation Annual
Category Residual value rate
methods periods (years) depreciation rate
Housing and Straight-line 10 or 30 5% 9.50% or 3.17%
buildings depreciation
General Straight-line 3-10 5% 31.67%-9.50%
equipment depreciation
Special Straight-line 5-10 5% 19.00%-9.50%
equipment depreciation
Transportation Straight-line 5 5% 19.00%
facility depreciation
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(3). Identification basis, pricing and depreciation methods of fixed assets leased in under
financing leases
□Applicable √N/A
24. Construction in progress
√Applicable □N/A
1. A construction in progress is recognized if the economic benefits relating to it are very likely to
flow to the Company and its cost can be reliably measured. A construction in progress is measured at the
actual cost incurred for bringing the asset to working condition for its intended use.
2. The construction in progress is transferred to fixed assets at its actual construction cost when
meeting working conditions for its intended use. If a project under construction has not undergone final
accounts for completion when the project meets the working condition for its intended use, the project is
transferred to fixed assets at the estimated value, and after final accounts for completion are handled, the
original value provisionally estimated is adjusted at the actual cost, but no adjustment is made to
originally provided depreciation.
25. Borrowing costs
√Applicable □N/A
1. Recognition of capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as part of the cost of the relevant asset.
The amounts of other borrowing costs incurred are expensed when incurred and included in profit or loss
for the current period.
2. Period of capitalization of borrowing costs
(1) A borrowing cost is capitalized when all of the following conditions are satisfied: 1) the
expenditures on the asset have already been incurred; 2) the borrowing cost has already been incurred;
and 3) the acquisition, construction or production activities necessary to prepare the asset for its intended
use or sale have already commenced.
(2) Capitalization of borrowing costs is suspended during periods in which the acquisition,
construction or production of a qualifying asset is interrupted abnormally, when the interruption is for a
continuous period of more than 3 months. The borrowing costs incurred during these periods are
recognized as an expense for the current period until the acquisition, construction or production is
resumed.
(3) When the qualifying asset being acquired, constructed or produced has become ready for its
intended use or sale, the capitalization ceases.
3. Rate and amount of capitalization of borrowing costs
If funds are borrowed under a specific-purpose borrowing for the acquisition, construction or
production of a qualifying asset, the amount of interest to be capitalized is the actual interest expense
incurred on that borrowing for the period (including amortized discount or premium determined using
the effective interest method) less any bank interest earned from depositing the borrowed funds before
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being used on the asset or any investment income on the temporary investment of those funds. If funds
are borrowed under general-purpose borrowings and are utilized for the acquisition, construction or
production of a qualifying asset, the Company determines the amount of interest to be capitalized on
such borrowings by multiplying a capitalization rate of the utilized general-purpose borrowings by the
weighted average of the excess amounts of cumulative expenditures on the asset over and above the
amounts of specific-purpose borrowings.
26. Biological assets
□Applicable √N/A
27. Oil and gas assets
□Applicable √N/A
28. Use of right assets
□Applicable √N/A
29. Intangible assets
(1). Pricing methods, useful lives and impairment tests
√Applicable □N/A
1. Intangible assets include land use rights, patent rights and nonpatented technology, which are
initially measured at cost.
2. The depreciable amount of an intangible asset with a finite useful life is allocated on a systematic
and rational basis over its useful life in the pattern in which the asset’s economic benefits are expected to
be realized. If that pattern cannot be determined reliably, the straight-line method is used. The specific
life is shown as follows:
Item Amortization periods
(years)
Land use rights 40 or 50
Nonpatented 5
technology
Office software 3-10
Patent rights 5
Customer resources 3
Trademark rights 10
(2). Accounting policies for internal research and development expenditure
√Applicable □N/A
Expenditure on the research phase of an internal research and development project is recognized in
profit or loss in the period in which it is incurred. Expenditure on the development phase of an internal
research and development project is recognized as an intangible asset only when the Company
demonstrates all of the following: (1) the technical feasibility of completing the intangible asset so that it
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will be available for use or sale; (2) the intention to complete the intangible asset and use or sell it; (3)
how the intangible asset will generate economic benefits. Among other things, the Company can
demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself
or, if it is to be used internally, the usefulness of the intangible asset; (4) the availability of adequate
technical, financial and other resources to complete the development and the ability to use or sell the
intangible asset; and (5) its ability to measure reliably the expenditure attributable to the intangible asset
during its development phase.
30. Impairment of long-term assets
√Applicable □N/A
With respect to long-term equity investments, investment properties measured at the cost model,
fixed assets, construction in progress, intangible assets with a finite useful life and other long-term assets,
if there’s an indication of impairment at the balance sheet date, the Company assesses their recoverable
amount. Goodwill arising in a business combination and an intangible asset with an indefinite useful life
are tested for impairment annually, irrespective of whether there is any indication that the asset may be
impaired. For the purpose of impairment testing, goodwill is considered together with the related asset
portfolio or sets of asset portfolio.
The the recoverable amount of the long-term asset above is lower than its carrying amount, the
difference is measured as impairment loss of the asset and recognized in profit or loss for the current
period.
31. Long-term prepaid expenses
√Applicable □N/A
Long-term prepaid expenses that have already been incurred but should be amortized over a period
of more than one year (exclusive) are accounted for. Long-term prepaid expenses are stated as the
amount actually incurred and are amortized evenly by stages within the benefit period or specified
period. If an item of long-term deferred expenses will not benefit the subsequent periods, the amortized
value of the item that has not yet been amortized is wholly transferred to profit or loss in the period in
which it is actually incurred.
32. Contract liabilities
Recognition methods of contract liabilities
√Applicable □N/A
The Company presents the obligations to transfer goods to customers for the consideration received
or receivable from customers as the contract liabilities.
33. Employee benefits
(1). Accounting for short-term benefits
√Applicable □N/A
The Company recognizes the short-term benefits actually incurred during the accounting period
when the employees provide services for the Company as liabilities, and includes same in profit or loss
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for the current period or the cost of related assets.
(2). Accounting for post-employment benefits
√Applicable □N/A
Post-employment benefits are classified into defined contribution plans and defined benefit plans.
(1) During the accounting period in which the employees serve the Company, the amounts payable
under the defined contribution plan are recognized as liabilities, and charged to profit or loss for the
current period or the cost of related assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
1) According to the projected unit credit method, use the unbiased and consistent actuarial
assumptions to estimate demographic variables and financial variables, measure the obligations arising
from the defined benefit plan and determine the period to which the relevant obligations belong.
Meanwhile, discount the obligations arising from the defined benefit plan, in order to determine the
present value of the benefit plan obligations and the current service cost;
2) If the defined benefit plan has assets, the deficit or surplus resulting after reducing the present
value of the defined benefit plan obligation by the fair value of the defined benefit plan is recognized as
a net liability or asset of the defined benefit plan. If the defined benefit plan has a surplus, the net assets
of the defined benefit plan are measured at the lower of surplus in the defined benefit plan and asset
ceiling;
3) At the end of the reporting period, the cost of employee benefits arising from the defined benefit
plan is recorded as service cost, net interest on the net liabilities or net assets of the defined benefit plan,
and changes arising from re-measurement of the net liabilities or net assets of the defined benefit plan,
wherein the service cost and the net interest on the net liabilities or net assets of the defined benefit plan
are included in profit or loss for the current period or the cost of related assets, and the changes arising
from re-measurement of the net liabilities or net assets of the defined benefit plan are included in other
comprehensive income, which will not be converted back to profit or loss in subsequent periods, but
may be transferred within the scope of equity.
(3). Accounting for termination benefits
√Applicable □N/A
The employee benefit liabilities arising from recognition of termination benefits offered to
employees are recognized in profit or loss for the current period on the earlier of: (1) when the Company
can no longer withdraw the offer of termination benefits as a result of termination of employment or
redundancy; or (2) when the Company recognizes the restructuring costs or expenses relating to payment
of termination benefits.
(4). Accounting for other long-term employee benefits
√Applicable □N/A
Other long-term employee benefits offered to employees are accounted for in accordance with the
provisions applicable to defined contribution plans if they are qualified as defined contribution plans,
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otherwise, they are accounted for in accordance with the provisions applicable to defined benefit plans.
In order to simplify the accounting treatment, the total net amount of the cost of employee benefits
arising from the defined benefit plans that is recorded as service cost, net interest on the net liabilities or
net assets of other long-term employee benefits, changes arising from re-measurement of the net
liabilities or net assets of other long-term employee benefits and other components is included in profit
or loss for the current period or the cost of related assets.
34. Lease liabilities
□Applicable √N/A
35. Provisions
√Applicable □N/A
1. An obligation arising from any external guarantee, litigations, product quality warranty, onerous
contract or other contingencies is recognized as a provision if it is a present obligation assumed by the
Company, and it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation, and the amount of the obligation can be reliably measured.
2. Provisions are initially measured according to the best estimates of the expenditures required to
settle the related present obligations. The carrying amount of estimated liabilities is reviewed at the
balance sheet date.
36. Share-based payments
√Applicable □N/A
1. Category of share-based payment
A share-based payment is classified as either an equity-settled share-based payment or a
cash-settled share-based payment.
2. Accounting for implementation, modification and termination of share-based payment plans
(1) Equity-settled share-based payment
If the equity instruments granted under an equity-settled share-based payment for services received
from employees vest immediately following the grant, the Company shall, on grant date, recognize
related costs or expenses at an amount equal to the fair value of the equity instruments, with a
corresponding increase in capital reserve. If the rights under a share-based payment for services received
from employees do not vest until the completion of services for a vesting period, or until the
achievement of a specified performance condition, at each balance sheet date during the vesting period,
the Company makes the best estimate of the number of equity instruments expected to vest, and based
on this, recognizes the services received in the current period in the related costs or expenses at an
amount equal to the fair value on the grant date, with a corresponding increase in capital reserve.
For the equity instruments granted under an equity-settled share-based payment for services from
other parties, if the fair value of services received from other parties can be measured reliably, the fair
value of the equity instruments is measured at the fair value of services from other parties on the grant
date; if the fair value of services received from other parties cannot be measured reliably but the fair
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value of the equity instruments can be measured reliably, the fair value of the equity instruments on the
date on which services are received shall be recognized as related costs or expenses, with a
corresponding increase in owners' equity.
(2) Cash-settled share-based Payment
If the right under the the cash-settled share-based payment for services from employees vests
immediately following the grant, the Company, on grant date, recognizes related costs or expenses at an
amount equal to the fair value of the liability assumed by the Company, with a corresponding increase in
liability. If the rights under a cash-settled share-based payment for services from employees do not vest
until the completion of services for a vesting period, or until the achievement of a specified performance
condition, the Company, at each balance sheet date during the vesting period, recognize the services
received for the current period as related costs or expenses, with a corresponding increase in liability, at
an amount equal to the fair value of the liability based on the best estimate of the outcome of vesting.
(3) Modification and termination of share-based payment plans
If the modification increases the fair value of the equity instruments granted, the Company
recognizes the increase in services received based on the increase in the fair value of the equity
instruments; if the modification increases the number of equity instruments granted, the Company
recognizes the fair value of the increased equity instruments as the increase in services correspondingly;
if the Company modifies the vesting conditions in a way that is beneficial to employees, the Company
considers the revised vesting conditions when dealing with the vesting conditions.
If the modification reduces the fair value of the equity instruments granted, the Company continues
to use the fair value of the equity instruments on the grant date as the basis to recognize the amounts of
the service received, regardless of the decrease in the fair value of the equity instruments; if the
modification reduces the number of equity instruments granted, the Company treats the reduced portion
as the cancellation of the granted equity instruments; if the exercising conditions are modified in a way
that is not conducive to the employees, the Company does not consider the revised vesting conditions
when dealing with the exercising conditions.
If the Company cancels or settles the equity instruments granted during the vesting period (except
as cancelled because vesting conditions are not satisfied), the Company treats the cancellation or
settlement as the accelerated exercise, and the amount to be recognized during the remaining vesting
period is immediately recognized.
37. Preferred shares, perpetual bonds and others financial instruments
□Applicable √N/A
38. Revenue
(1). The accounting policies adopted for the recognition and measurement of revenue
√Applicable □N/A
1. Revenue recognition
On the commence date of a contract, the Company evaluates the contract, identifies each individual
performance obligation contained therein and determine whether each individual performance obligation
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is performed over time or at a point in time.
When meeting one of the following criteria, it belongs to the obligation performed over time,
otherwise it constitutes the obligation performed at a point in time: (1) the customer obtains and
consumes the economic benefits generated by the Company’s performance when the Company performs
the contract; (2) the customer can control the products under construction in the process of the
Company’s performance; (3) the products produced in the process of the Company’s performance have
irreplaceable uses, and the Company has the right to collect payment for the cumulative performance
that has been completed up to date throughout the term of the contract.
For the obligation performed over time, the Company recognizes the revenue based on the
performance progress over time. When the performance progress cannot be reasonably determined, and
the costs incurred are expected to be recoverable, revenue is recognized to the extent of costs incurred
until the performance progress can be reasonably determined. For the obligation performed at a point in
time, the revenue is recognized at the time point when the customer obtains the control of the related
goods and services. When judging whether the customer has obtained the control of goods, the Company
considers the followings signs: (1) the Company has the current right to receive payment for such goods,
that is, the customer has the current obligation to make payment for such goods; (2) the Company has
transferred the legal ownership of such goods to the customer, that is, the customer has the legal
ownership of such goods; (3) the Company has transferred such goods to the customer physically, that is,
the customer has taken possession of such goods physically; (4) the Company has transferred material
risks and rewards of such goods to the customer, that is, the customer has obtained material risks and
rewards of such goods; (5) the customer has accepted such goods; and (6) other signs that the customer
has obtained control of such goods.
2. Revenue measurement
(1) The Company measures revenue based on the transaction price allocated to each individual
performance obligation. The transaction price is the amount of consideration to which the Company is
entitled arising from the transfer of goods or services to the customer, excluding the amount collected on
behalf of a third party and expected to be returned to the customer.
(2) If there is variable consideration in the contract, the Company determines the best estimate of
the variable consideration based on the expected value or the most likely amount. However, variable
consideration is included in the transaction price if, and to the extent that, it is highly probable that its
inclusion will not result in a significant revenue reversal of accumulatively recognized revenue in the
future when the uncertainty has been subsequently resolved.
(3) If there is a major financing component in the contract, the Company determines the transaction
price based on the presumed amount payable in cash when the customer obtains the control of goods or
services. The difference between such transaction price and the contract consideration is amortized over
the period of the contract using the effective interest method. If on the commence date of a contract, the
Company expects that the customer’s acquisition of control of goods or services is not more than one
year from the customer’s payment therefor, the major financing component in the contract will not be
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considered.
(4) If the contract has two or multiple performance obligations, the Company, on the commence
date of a contract, allocates the transaction price to each individual performance obligation in the
contract by reference to relative standalone selling prices of goods promised thereby.
(2). Difference in the accounting policy for revenue recognition arising from adoption of different
modes of operation for the same kind of business
√Applicable □N/A
The Company mainly engages in sales of cosmetics. The Company adopts such methods as
distribution, direct sales and agency sales.
(1) Distribution
The Company recognizes the sales revenue after delivering the products to a purchaser as agreed in
the contract and upon inspection by the purchaser.
(2) Direct sales
The Company recognizes the sales revenue after it delivers the products to a customer and the
customer confirms the acceptance and pays for the products.
(3)Agency sales
The Company recognizes the sales revenue after it delivers the products to an entrusted party and
the entrust party realizes the sales and issues the list of agency sales to the Company.
39. Contract costs
√Applicable □N/A
Assets related to contract costs include contract acquisition costs and contract performance costs.
If the incremental cost incurred by the Company to obtain a contract is expected to be recovered, it
is recognized as an asset as the cost of obtaining a contract. If the amortization period of the cost of
obtaining a contract does not exceed one year, such cost is directly included in the profit or loss for the
current period.
The cost incurred by the Company to perform a contract is not be governed by the standards on
inventories, fixed assets or intangible assets, and if meeting the following criteria, is recognized as an
asset as the contract performance cost:
1. Such cost is directly related to an existing or expected contract, including expenses for direct
labor, direct materials and manufacturing (or similar expenses), costs to be clearly borne by the customer
and other costs incurred only due to the contract;
2. Such cost increases the the Company’s future resources for fulfilling its performance obligations;
and
3. Such cost is expected to be recovered.
The Company amortizes the asset related to the contract cost on the same basis as the recognition of
the revenue of the goods or services related to the asset, and includes it into the profit or cost for the
current period.
If the carrying amount of the asset related to the contract cost is higher than the remaining
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consideration expected to be obtained due to the transfer of the goods or services related to the asset less
the estimated cost, then the Company makes the provision for impairment of the excess and recognizes it
as an impairment loss for the asset. If the impairment factors for prior periods have changed afterwards
so that the remaining consideration expected to be obtained due to the transfer of the goods or services
related to the asset less the estimated cost is higher than the carrying amount of the asset, then the
Company reverses the provision for impairment originally made and includes it in the profit or loss for
the current period, provided that the carrying amount after reverse shall not exceed the carrying amount
the asset would have reached on the date of reverse had the provision for impairment been not made.
40. Government grants
√Applicable □N/A
1. Government grants are recognized if (1) the Company meets the conditions attaching to the
government grants; and (2) the Company will receive the government grants. If a government grant is in
the form of a transfer of a monetary asset, the item is measured at the amount received or receivable. If a
government grant is in the form of a transfer of a non-monetary asset, the item is measured at fair value.
If fair value is not reliably determinable, the item is measured at a nominal amount.
2. Determination of and accounting for government grants related to assets
Government grants related to assets are government grants which are offered for purchasing,
constructing or otherwise acquiring long-term assets as provided by the applicable government
documents, or or in the absence of such express provision in the applicable government documents,
government grants whose basic condition is that such grants judged to be offered for purchasing,
constructing or otherwise acquiring long-term assets on the basis of basic conditions that must be met for
acquisition of such grants. The government grants related to assets are offset against the carrying amount
of the related assets or recognized as deferred income. Government grants related to assets, if recognized
as deferred income, are included in profit or loss over the service life of the relevant assets on a
reasonable and systemic basis. Government grants measured at nominal amount are directly recognized
in profit or loss for the current period. In case of sale, transfer, retirement or damage of the relevant
assets before the end of intended service life, the balance of the unallocated deferred income is
transferred to profit or loss for the period in which the assets are disposed of.
3. Determination of and accounting for government grants related to income
Government grants related to income are government grants other than those related to assets.
Government grants related to both assets and income in which it is difficult to make a distinction
between the portion related to assets and the portion related to income are wholly classified as
government grants related to income. Government grants related to income as compensation for
expenses or losses to be incurred in subsequent periods are recognized as deferred income and in the
period for recognizing the relevant costs, expenses or losses, included in profit or loss for the current
period or offset against the relevant costs. Government grants related to income as compensation for
expenses or losses already incurred are directly included in profit or loss for the current period or offset
against the relevant costs.
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4. Government grants related to day-to-day operations of the Company are recognized in other
income or offset against the relevant costs and expenses depending on the nature of economic business.
Government grants not related to day-to-day operations of the Company are recognized in non-operating
revenues or expenses.
41. Deferred tax assets / deferred tax liabilities
√Applicable □N/A
1. The difference between the carrying amount of an asset or liability and the tax base (or in case of
an item not recognized as asset or liability whose tax base can be determined according to the applicable
tax law, the difference between the tax base and the carrying amount) is recognized as a deferred tax
asset or deferred tax liability according to the tax rate applicable to the period in which the asset or
liability is expected to be recovered or settled.
2. Deferred tax assets are recognized to the extent of the amount of income tax payable that will be
available in future periods against which deductible temporary differences are deductible. At the balance
sheet date, deferred tax assets not recognized in prior periods are recognized if there’s conclusive
evidence that it is probable that sufficient taxable income will be available in future periods against
which the deductible temporary differences are deductible.
3. At the balance sheet date, the carrying amount of a deferred tax asset is reviewed. The Company
reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that
sufficient taxable profits will be available in future periods to allow the benefit of the deferred tax asset
to be utilized. Any such reduction in amount is reversed to the extent that it becomes probable that
sufficient taxable profits will be available.
4. Current and deferred tax of the Company is recognized as income or an expense and included in
profit or loss for the current period, except to the extent that the tax arises from: (1) business
combination; or (2) a transaction or event which is recognized directly in owner’s equity.
42. Leases
(1). Accounting for operating leases
□Applicable √N/A
(2). Accounting for financing leases
□Applicable √N/A
(3). Determination of and accounting for leases under new lease standards
√Applicable □N/A
1. Identification of leases
On the commencement date of a contract, the Company assesses whether the contract is a lease or
includes a lease. Where a party to a contract transfers the right to control the use of one or more
identified assets for a certain period of time in return for consideration, the contract is a lease or includes
a lease. To determine whether the right to control the use of identified assets within a certain period of
time under a contract has been transferred, the Company assesses whether a client in the contract has the
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right to use almost all of the economic benefits arising from the use of the identified assets during the
period of use, and has the right to control the use of identified assets during this period of use.
2. Identification of separate leases
Where a contract concurrently contains multiple separate leases, the Company splits the contract
and conduct accounting treatment respectively for all separate leases. Where the following conditions
are concurrently met, use of the rights of identified assets constitutes a separate lease in a contract: (1) a
lessee may earn profits from separate use of the assets or joint use with other resources readily available;
and (2) there is no high dependence or high correlation between the assets and other assets in the
contract.
3. Accounting for leases to which the Company acts as a lessee
On the lease inception date, the Company considers a lease with a term of not more than 12 months
and excluding the purchase option as a short-term lease, and a lease of a single leased asset with
relatively low value when the single leased assets is a new asset as a low-value asset lease.
For all the short-term leases and low-value asset leases, the Company includes lease payments in
the cost of related assets or profit or loss for the current period on a straight-line basis for each period
during the lease term.
On the lease inception date, the Company recognizes the right-of-use assets and the lease liability
for the lease, except for the short-term lease and low-value asset lease that are subject to simplified
treatment.
On the lease inception date, the Company recognizes the present value of the lease payments that
have not been paid as a lease liability. When calculating the present value of the lease payments, the
Company adopts the interest rate implicit in the lease as the discount rate, and adopts its incremental
borrowing rate of the Company as the discount rate where it is unable to determine the interest rate
implicit in the lease. The difference between the lease payment and its present value is regarded as an
unrecognized financing expense. For each period during the lease term, the interest expense is
recognized at the discount rate of the present value of the recognized lease payments and included in
profit and loss for the current period. Variable lease payments not included in the measurement of lease
liability are included in profit or loss in the period in which it is incurred.
On the lease inception date, in case of changes in substantial fixed payments, the residual value of
the guarantee, the index or ratio used for determining the lease payments, the evaluation results and
actual exercise of the purchase option, renewal option or termination of the lease option, the Company
re-measures the lease liability at the present value of changed lease payments.
4. Accounting for the changed leases to which the Company acts as a lessee
1)Lease change as a separate lease
Where the lease changes and meets the following conditions, the Company conducts accounting
treatment for the lease change as a separate lease: ① the lease change expands the lease scope by
increasing the right to use one or more leased assets; ② the increased consideration is equivalent to the
individual price of the expanded lease scope adjusted as per the contract.
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2) Lease change not as a separate lease
On the effective date of the lease change, the Company re-determines the lease term and
re-calculates the lease liability on the basis of the present value calculated as per the changed lease
payments or revised discount rate. When calculating the present value of the lease payments after change,
the Company adopts the interest rate implicit in the lease during the residual lease term as the discount
rate, and its incremental borrowing rate on the effective date of the lease change as the discount rate,
where it is unable to determine the interest rate implicit in the lease during the lease term.
The above effects of adjustment to the lease liability are accounted for separately by the Company
according to the following circumstances:
①Where the lease change results in a narrower lease scope or a shorter lease term, the Company
accordingly reduces the carrying amount of the right-of-use assets and includes the relevant gain or
loss of the partially or fully terminated lease in profit and loss for the current period.
②Where other lease changes result in re-measurement of the lease liability, the Company
accordingly adjusts the book value of the right-of-use assets.
5. Accounting for leases to which the Company acts as a lessor
The Company recognizes the receipts of leases in current profit or loss on a straight-line basis for
each period during the lease term. The initial direct cost incurred by the Company is capitalized and
apportioned on the same basis for the recognition of rental income, and be included in the current loss
and profit in installments. Variable lease payments obtained by the Company in relation to operating
leases but not included in the lease receipts are included in profit or loss in the period in which they are
incurred.
6. Accounting for changed leases to which the Company acts as a lessor
In the event of any change in an operating lease, the Company regards it as a new lease for
accounting treatment from the effective date of the change, and the advance or receivable lease receipts
related to the lease prior to the change are regarded as receipts of a new lease.
43. Other significant accounting policies and accounting estimates
□Applicable √N/A
44. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
√Applicable □N/A
Note (name and amount of
Changes in accounting policies
Approval procedure materially affected items of the
and related reasons
statements)
The Company implements the The Company held the 19th 1.The Company has not assessed
revised Accounting Standard for meeting of the second board of whether or not it is a lease or
Business Enterprises No. 21 - directors and the 18th meeting of includes a lease for contracts that
Lease (“New Lease Standard”) the second board of supervisors existed prior to January 1, 2021.
from January 1, 2021. on April 21, 2021, reviewing and 2. As the lessee, the Company
approving the Proposal on shall not adjust the information
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Change of Accounting Policies, for the comparable period in
and the independent directors of accordance with the relevant
the Company gave the regulations on the convergence
independent opinions on consent. of old and new standards, and the
The Company’s changes of differences arising from the
accounting policy do not need to implementation of new lease
be submitted to the general standard on the first
meeting of shareholders for implementation date is
review. For details, please refer retrospectively adjusted to the
to No. 2021-012, No. 2021-013 amount of retained earnings and
and 2021-016 Announcements of other related items in the
the Company. financial statements at the
beginning of the reporting
period.
Other descriptions:
(1) The implementation of new lease standards has no impact on the financial statements on
January 1, 2021.
(2)The operating leases prior to January 1, 2021 are accounted for in a simplified manner.
The Company regards the leases completed within 12 months from the date of first implementation
as short-terms for accounting treatment, include the lease payments in the cost of related assets or profit
or loss for the current period on a straight-line basis for each period during the lease term.
(3)The Company does not retrospectively adjust the leases to which the Company acts as a lessor.
(2). Changes in significant accounting estimates
□Applicable √N/A
(3). Description of adjustments in opening balances of line items in financial statements of the
current year due to first implementation of new lease standard since 2021
□Applicable √N/A
(4). Description of retrospective adjustments in comparative data in prior periods due to first
implementation of new lease standard in 2021
□Applicable √N/A
45. Others
□Applicable √N/A
VI. Tax
1. Major categories of taxes and tax rates
Major categories of taxes and tax rates
√Applicable □N/A
Tax category Taxation basis Tax rate
VAT VAT payable is the output tax 13%, 9%, 6%
based on the sales of goods and
taxable labor income calculated
pursuant to the tax law, net of the
input tax that is allowed to be
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2021 Semi-annual Report
deducted in the current period
Consumption tax Taxable sales turnover (volume) 15%
Business tax
Urban maintenance and Actually paid turnover tax 7%, 5%
construction tax
Enterprise income tax Taxable income
Property tax If it is levied on an ad valorem 1.2%, 12%
basis, the tax is calculated as 1.2%
of the remaining value after being
deducted 30% of the original
value of the property; if it is levied
subject to rent, the tax is
calculated as 12% of the rental
income.
Education surcharges Actually paid turnover tax 3%
Local education surcharges Actually paid turnover tax 2%
Disclosure of taxpayers (if any) with different rates of enterprise income tax
√Applicable □N/A
Taxpayer Rate of enterprise income tax (%)
Proya Cosmetics Co., Ltd. 15%
Y.N.M. Cosmetics Co., Ltd.
HANNA COSMETICS CO., LTD.
HAPSODE Co., Ltd.
Hongkong Keshi Trading Limited
Hongkong Xinghuo Industry Limited
Hongkong Wanyan Electronic Commerce Co.,
Limited
Hong Kong Zhongwen Electronic Commerce Co.,
Limited
Hongkong Xuchen Trading Limited
BOYA (Hong Kong) Investment Management Co.,
Limited
Proya Europe SARL
Off & Relax Co., Ltd.
Tax payers other than those mentioned above [Note] 25%
[Note]: Y.N.M. Cosmetics Co., Ltd., HANNA COSMETICS CO., LTD. and HAPSODE Co., Ltd. pay
the relevant taxes and fees in accordance with local tax regulations of South Korea; Hongkong Keshi
Trading Limited, Hongkong Xinghuo Industry Limited, Hongkong Wanyan Electronic Commerce Co.,
Limited, Hong Kong Zhongwen Electronic Commerce Co., Limited, Hongkong Xuchen Trading
Limited and BOYA (Hong Kong) Investment Management Co., Limited pay the relevant taxes and fees
in accordance with local tax regulations of Hong Kong; Proya Europe SARL pays the relevant taxes and
fees in accordance with local tax regulations of Luxembourg; Off & Relax Co., Ltd. pays the relevant
taxes and fees in accordance with local tax regulations of Japan.
2. Tax incentives
√Applicable □N/A
The Company passed the high-tech enterprise review on December 1, 2020, obtained the High-tech
Enterprise Certificate which is valid for three years, and enjoys tax preferences from 2020 to 2022. The
Company paid the enterprise income tax at the reduced tax rate of 15% in 2021.
In accordance with the Notice of the Ministry of Finance and the State Administration of Taxation
on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises
(C.S. [2019] No. 13) and the Announcement of the State Administration of Taxation on Issues
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Concerning the Implementation of the Inclusive Income Tax Deduction and Exemption Policies for Small
Low-Profit Enterprises (Announcement No. 2 [2019] of the State Administration of Taxation), the
subsidiaries including Chaozhao Niuke Technology Co., Ltd. meet the tax payment standards as a micro
and small enterprise, and the annual taxable income of a small low-profit enterprise that is not more than
RMB 1 million shall be included in its taxable income at the reduced rate of 25%, with the applicable
enterprise income tax rate of 20%; and the annual taxable income that is not less than RMB 1 million
nor more than RMB 3 million shall be included in its taxable income at the reduced rate of 50%, with
the applicable enterprise income tax rate of 20%.
In accordance with the Announcement on Relevant Policies for Deepening the Value-Added Tax
Reform (Announcement No. 39 by the Ministry of Finance, the State Taxation Administration and the
General Administration of Customs in 2019) jointly issued by the Ministry of Finance, the State Taxation
Administration and the General Administration of Customs, Hangzhou Proya Commercial Management
Co., Ltd. as the subsidiary meets the conditions of general taxpayers in production and life service
industry and thus is allowed to credit the amount of input tax deductible in the current period plus 10%
thereof against the amount of taxes payable from April 1, 2019 to December 31, 2021.
3. Others
□Application √N/A
VII. Notes to consolidated financial statements
1. Cash
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Cash on hand 4,920.44 26,853.58
Deposits 1,211,789,299.48 1,368,800,012.77
Other currency funds 24,543,486.83 47,827,774.58
Total 1,236,337,706.75 1,416,654,640.93
Including: Total 95,782,171.06 83,771,568.02
amount deposited aboard
Other descriptions:
Among the bank deposits at the end of the period, the security deposit of fixed time deposit for the
transformer amounting to RMB 293,481.72, and the other currency funds including L/C security deposit
of RMB 7,000,000.00, and Tmall and Alipay security deposit of RMB 674,000.00 are restricted in their
use.
Among the bank deposits at the opening of the period, the security deposit of fixed time deposit for
the transformer amounting to RMB 293,481.72, and other currency funds including land construction
security deposit of RMB 7,036,404.33, L/C security deposit of RMB 7,000,000.00, ETC vehicle security
deposit of RMB 69,000.00, and Tmall and Alipay security deposit of RMB 405,000.00 are restricted in
their use.
2. Held-for-trading financial assets
□Application √N/A
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2021 Semi-annual Report
3. Derivative financial assets
□Application √N/A
4. Notes receivable
(1). Notes receivable by category
□Application √N/A
(2). Notes receivable that have been pledged at the closing of the period
□Application √N/A
(3). Notes receivable endorsed or discounted by the Company that are not matured at the balance
sheet date
□Application √N/A
(4). Notes that are reclassified into accounts receivable by the Company at the closing of the
period due to the default of the drawer
□Application √N/A
(5). Disclosure by category based on methods of determination of provision for bad debts
□Application √N/A
(6). Provision for debt debts
□Application √N/A
(7). Notes receivable actually written off for the current period
□Application √N/A
Other descriptions:
□Application √N/A
5. Accounts receivable
(1). Disclosure by aging
√Applicable □N/A
Unit: Yuan Currency: RMB
Aging Gross carrying amount at the end of the period
Within 1 year
Including: Subdivision within 1 year
Sub-total within 1 year 180,297,431.50
1-2 years 16,855,014.19
2-3 years 4,806,673.54
Over 3 years 3,227,933.65
3-4 years
4-5 years
Above 5 years
Total 205,187,052.88
(2). Disclosure by category based on methods of determination of provision for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
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2021 Semi-annual Report
Closing balance Opening balance
Gross carrying Provision for bad Gross carrying Provision for bad
Category amount debts Carrying amount debts Carrying
Proportion Proportion amount Proportion Proportion amount
Amount Amount Amount Amount
(%) (%) (%) (%)
Provision 17,721,15 8.64 17,721,1 100.00 16,916,21 5.29 16,916,21 100.00
for bad 5.26 55.26 0.88 0.88
debts made
individually:
Including:
Provision 187,465,89 91.36 13,149,21 7.01 174,316,68 303,007,48 94.71 18,129,06 5.98 284,878,41
for bad 7.62 6.16 1.46 7.69 8.11 9.58
debts made
by portfolio:
Including:
205,187,05 / 30,870,37 / 174,316,68 319,923,69 / 35,045,27 / 284,878,41
Total
2.88 1.42 1.46 8.57 8.99 9.58
Provision for bad debts made individually:
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance
Name Gross carrying Provision for bad Reasons for
Proportion (%)
amount debts provisions
Provision for 17,721,155.26 17,721,155.26 100.00 Expected to
bad debts made uncollectible
individually
Total 17,721,155.26 17,721,155.26 100.00 /
Descriptions of provision for bad debts made individually:
□Applicable √N/A
Provision for bad debts made by portfolio:
√Applicable □N/A
Items of portfolio provision: aging portfolio
Unit: Yuan Currency: RMB
Closing balance
Name
Accounts receivable Provision for bad debts Proportion (%)
Aging portfolio 187,465,897.62 13,149,216.16 7.01
Total 187,465,897.62 13,149,216.16 7.01
Standards of provision for bad debts made by portfolio and descriptions thereof:
√Applicable □N/A
Accounts receivable for which the provide for bad debts is made by aging portfolio
Closing balance
Aging
Gross carrying amount Provision for bad debts Provision (%)
Within 1 year 180,159,562.31 9,007,978.10 5.00
1-2 years 4,360,229.05 1,308,068.72 30.00
2-3 years 225,873.85 112,936.93 50.00
Over 3 years 2,720,232.41 2,720,232.41 100.00
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2021 Semi-annual Report
Sub-total 187,465,897.62 13,149,216.16 7.01
If the provision for bad debts is made in accordance with the general model of expected credit losses,
please refer to other receivables disclosure:
□Applicable √N/A
(3). Provision for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Recovery Closing
Category Other
balance Provision or Removal/write-off balance
changes
reversal
Provision 16,916,210.88 804,944.38 17,721,155.26
for bad
debts made
individually
Provision 18,129,068.11 -4,590,040.14 2,488.18 387,323.63 13,149,216.16
for bad
debts made
by portfolio
Total 35,045,278.99 -3,785,095.76 2,488.18 387,323.63 30,870,371.42
Other decrease of RMB387,323.63 in the current period on provision for bad debts made by
portfolio is attributable to the disposal of the equity of Shanghai Healthlong Biochemical Technology
Co., Ltd. (hereinafter referred to as Shanghai Healthlong Company), and the provision for bad debts of
accounts receivable were transferred out accordingly.
Significant recovery or reversal of bad debt provision for the current period:
□Applicable √N/A
(4). Accounts receivable actually written off for the current period
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Write-off amount
Accounts receivable actually written off 2,488.18
Descriptions of significant accounts receivable that are written off:
□Applicable √N/A
Descriptions of write-off of accounts receivable:
□Applicable √N/A
(5). Top five closing balances of accounts receivable categorized by debtor
√Applicable □N/A
Proportion to the
Gross carrying Provision for bad
Entity balance of accounts
amount debts
receivable (%)
Beijing Jingdong Century Trade Co.,
48,927,371.11 23.85 2,446,368.56
Ltd.
Zhejiang Youcaihua Network 28,000,003.20 13.65 1,400,000.16
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2021 Semi-annual Report
Technology Co., Ltd.
Vipshop (China) Co., Ltd. 17,522,428.20 8.54 876,121.42
Zhejiang Tmall Network Technology
12,935,983.66 6.30 646,799.19
Co., Ltd.
Jinhua Zhuangmei Cosmetics Co., Ltd. 6,703,225.88 3.27 335,161.29
Sub-total 114,089,012.05 55.61 5,704,450.62
(6). Accounts receivable derecognized due to the transfer of financial assets
□Applicable √N/A
(7). Assets and liabilities generated by the transfer of accounts receivable and continuing
involvement therein
□Applicable √N/A
Other descriptions:
□Applicable √N/A
6. Receivable financing
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Notes receivable 5,263,729.60 5,531,997.32
Total 5,263,729.60 5,531,997.32
Increase or decrease of receivable financing for the current period and changes in its fair value
□Applicable √N/A
If the provision for bad debts is made in accordance with the general model of expected credit losses,
please refer to other receivables disclosure:
□Applicable √N/A
Other descriptions:
√Applicable □N/A
Notes receivable endorsed or discounted at the end of the period by the Company that are not matured at
the balance sheet date
Item Balance derecognized at
the end of the period
Bank acceptance bills 10,003,394.98
Sub-total 10,003,394.98
The acceptor of bank acceptance bills is a commercial bank with high credit, and the possibility that
bank acceptance bills fail to be paid at maturity is low. Therefore, the Company derecognized the
endorsed or discounted bank acceptance bills. However, if such notes fail to be paid when they are due,
the Company will still be jointly and severally liable to the holders in accordance with the provisions of
the Negotiable Instruments Law.
7. Prepayments
(1). Prepayments by aging
√Applicable □N/A
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2021 Semi-annual Report
Unit: Yuan Currency: RMB
Closing balance Opening balance
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 88,000,110.35 98.67 81,149,897.32 98.07
1-2 years 250,958.21 0.28 802,393.47 0.97
2-3 years 932,894.12 1.05 790,525.13 0.96
Over 3 years
Total 89,183,962.68 100.00 82,742,815.92 100.00
Reasons for overdue settlement of prepayments with significant amounts and aged more than 1 year:
None
(2). Top five closing balances of prepayments categorized by receivers
√Applicable □N/A
Proportion to the
Entity Gross carrying amount balance of prepayments
(%)
Beijing Linkworld Network Technology Co.,
14,906,011.57 16.71
Ltd.
Alipay (China) Network Technology Co., Ltd. 11,712,263.48 13.13
Guangxi Jingdong Xinjie E-commerce Co., Ltd. 11,034,497.87 12.37
Beauty Hi-tech Innovation Co., Ltd. 9,239,419.07 10.36
MEDICOS CO., LTD. 2,963,918.24 3.32
Sub-total 49,856,110.23 55.89
Other descriptions
□Applicable √N/A
8. Other receivables
Line items
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 47,275,902.55 48,733,527.35
Total 47,275,902.55 48,733,527.35
Other descriptions:
□Applicable √N/A
Interest receivable
(1). Classification of interest receivable
□Applicable √N/A
(2). Significant overdue interest
□Applicable √N/A
(3). Provision for bad debts
□Applicable √N/A
Other descriptions:
□Applicable √N/A
111 / 185
2021 Semi-annual Report
Dividends receivable
(1). Dividends receivable
□Applicable √N/A
(2). Significant dividends receivable aged more than 1 year
□Applicable √N/A
(3). Provision for bad debts
□Applicable √N/A
Other descriptions:
□Applicable √N/A
Other receivables
(1). Disclosure by aging
√Applicable □N/A
Unit: Yuan Currency: RMB
Gross carrying amount at the closing of the
Aging
period
Within 1 year
Including: Subdivision within 1 year
Sub-total within 1 year 44,708,548.69
1-2 years 6,391,816.19
2-3 years 657,020.04
Over 3 years 1,126,431.27
3-4 years
4-5 years
Above 5 years
Total 52,883,816.19
(2). Classification of other receivables by nature
√Applicable □N/A
Unit: Yuan Currency: RMB
Gross carrying amount at the Gross carrying amount at the
Nature
closing of the period opening of the period
Security deposit 23,068,954.00 15,177,436.77
Temporary payments receivable 27,640,452.53 39,073,769.81
Revolving fund 1,092,552.47 712,751.90
Others 1,081,857.19 744,011.86
Total 52,883,816.19 55,707,970.34
(3). Provision for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
Stage I Stage II Stage III
Provision for bad Lifetime ECL
Future Lifetime ECL (with Total
debts (without credit
12-month ECL credit impairment)
impairment)
Balance as of 2,141,110.96 3,171,320.29 1,662,011.74 6,974,442.99
January 1, 2021
In the current
period, balance as
112 / 185
2021 Semi-annual Report
at January 1, 2021
-- transferred to -528,624.19 528,624.19
Stage II
--transferred to -970,286.21 970,286.21
Stage III
-- transferred back
to Stage II
-- transferred back
to Stage I
Provisions for the 1,240,174.06 442,086.89 -852,957.78 829,303.17
current period
Reversal for the
current period
Removal for the
current period
Write-off for the
current period
Other changes -617,233.34 -1,254,200.30 -324,398.88 -2,195,832.52
Balance as of June 2,235,427.49 1,917,544.86 1,454,941.29 5,607,913.64
30, 2021
Descriptions of the significant changes in the gross carrying amount of other receivables for which the
changes in loss allowance occur for the current period:
□Applicable √N/A
Provision for bad debts in the current period and the basis for assessing whether the credit risk of
financial instruments has increased significantly:
□Applicable √N/A
(4). Provision for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Recovery Closing
Category Other
balance Provision or Removal/write-off balance
changes
reversal
Aging 6,974,442.99 829,303.17 -2,195,832.52 5,607,913.64
portfolio
Total 6,974,442.99 829,303.17 -2,195,832.52 5,607,913.64
Other changes of RMB -2,195,832.52 related to the disposal of the equity of Shanghai Healthlong
Company, and the provision for bad debts of other receivables were transferred out accordingly.
Significant recovery or reversal of provision for bad debts for the current period:
□Applicable √N/A
(5). Other receivables actually written off for the period
□Applicable √N/A
(6). Top five closing balances of other receivables categorized by debtor
√Applicable □N/A
Unit: Yuan Currency: RMB
113 / 185
2021 Semi-annual Report
Proportion to total
Closing balance of
Closing closing balance of
Entity Nature Aging provision for bad
balance other receivables
debts
(%)
People’s Security 13,493,392.00 Within 1 year 25.52 674,669.60
Government of deposit
Taixi Town,
Wuxing
District,
Huzhou City
EURL Temporary 12,001,399.00 Within 1 year 22.69 600,069.95
PHARMATICA payments
[Note] receivable
SIKEROM Temporary 7,857,909.71 Within 1 year 14.86 392,895.49
EUROPE payments
GMBH receivable
Hangzhou Security 4,708,614.72 1-2 years 8.90 1,412,584.42
Property deposit
Maintenance
Fund
Management
Center
Vipshop Security 500,000.00 Within 1 year 0.95 25,000.00
(China) Co., deposit
Ltd.
Total / 38,561,315.43 / 72.92 3,105,219.46
[Note] The amounts in the line of EURL PHARMATICA are combined amounts of EURL
PHARMATICA, PARISEZHAN HK LIMITED, SARL ORTUS and S.A.S AREDIS, which are
controlled by the same person.
(7). Receivables involving government grants
□Applicable √N/A
(8). Other receivables derecognized due to the transfer of financial assets
□Applicable √N/A
(9). Assets and liabilities generated by the transfer of other receivables and continuing
involvement therein
□Applicable √N/A
Other descriptions:
□Applicable √N/A
9. Inventory
(1). Classification of inventories
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
114 / 185
2021 Semi-annual Report
Provision for Provision for
decline in decline in
value of value of
inventories/ inventories/
Gross carrying provision for Carrying Gross carrying provision for Carrying
amount decline in amount amount decline in amount
value of value of
contract contract
performance performance
costs costs
Raw 16,756,263.44 930,262.55 15,826,000.89 25,023,198.10 790,191.51 24,233,006.59
materials
Goods in 13,068,407.69 279,667.64 12,788,740.05 19,699,809.41 333,215.45 19,366,593.96
process
Goods on 304,227,868.16 25,731,578.58 278,496,289.58 402,419,036.40 21,221,419.14 381,197,617.26
hand
Revolving
materials
Consumable
biological
assets
Contract
performance
costs
Packing 39,795,929.46 1,789,866.25 38,006,063.21 32,988,469.32 1,383,453.99 31,605,015.33
materials
Low-value 1,350,048.61 209,956.27 1,140,092.34 2,643,028.64 268,617.88 2,374,410.76
consumables
Outsourcing 11,858,116.84 1,832,658.48 10,025,458.36 11,494,429.58 1,630,055.73 9,864,373.85
gifts
Total 387,056,634.20 30,773,989.77 356,282,644.43 494,267,971.45 25,626,953.70 468,641,017.75
(2). Provision for decline in value of inventories and provision for decline in value of contract
performance costs
√Applicable □N/A
Unit: Yuan Currency: RMB
Increase for the current Decrease for the current
Opening period period Closing
Item
balance Recovery or balance
Provision Others Others
reversal
Raw 790,191.51 140,198.05 127.01 930,262.55
materials
Goods in 333,215.45 38,845.85 92,393.66 279,667.64
process
Goods on 21,221,419.14 7,122,040.90 2,173,222.75 438,658.71 25,731,578.58
hand
Revolving
materials
Consumable
biological
assets
Contract
performance
costs
Packing 1,383,453.99 947,035.84 540,623.58 1,789,866.25
115 / 185
2021 Semi-annual Report
materials
Low-value 268,617.88 17,763.19 59,081.59 17,343.21 209,956.27
consumables
Outsourcing 1,630,055.73 359,284.76 156,682.01 1,832,658.48
gifts
Total 25,626,953.70 8,625,168.59 3,022,003.59 456,128.93 30,773,989.77
The other decrease in the provision for decline in value of inventories for the period is RMB 456,128.93
in the current period because the equity of Shanghai Healthlong Company was disposed and provision
for decline in value of inventories was reversed.
At the end of the period, the net realizable value of some products is lower than the corresponding cost,
so the provision for decline in value of inventories is made based on the excess of the cost over the net
realizable value.
(3). Descriptions of the closing balance of inventories including capitalized amount of
borrowing costs
□Applicable √N/A
(4). Descriptions of amortization of contract performance costs for the current period
□Applicable √N/A
Other descriptions:
□Applicable √N/A
10. Contract assets
(1). Descriptions of contract assets
□Applicable √N/A
(2). Significant changes in the carrying amount during the reporting period and reasons therefor:
□Applicable √N/A
(3). Descriptions of the provision for impairment made for contract assets for the current period
□Applicable √N/A
Other descriptions:
□Applicable √N/A
11. Held-for-sale assets
□Applicable √N/A
12. Non-current assets due within 1 year
□Applicable √N/A
13. Other current assets
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Contract acquisition cost
Cost of returns receivable 2,401,805.37 4,434,684.01
VAT input tax to be deducted 42,865,528.18 24,162,220.64
116 / 185
2021 Semi-annual Report
Pre-paid taxes 6,638,906.62
Total 45,267,333.55 35,235,811.27
Other descriptions:
None
14. Debt investments
(1). Descriptions of debt investments
□Applicable √N/A
(2). Other significant debt investments at the closing of the period
□Applicable √N/A
(3). Provisions for impairment
□Applicable √N/A
15. Other debt investments
(1). Descriptions of other debt investments
□Applicable √N/A
(2). Other significant debt investments at the closing of the period
□Applicable √N/A
(3). Provision for impairment
□Applicable √N/A
Other descriptions:
□Applicable √N/A
16. Long-term receivables
(1) Descriptions of long-term receivables
□Applicable √N/A
(2) Provision for bad debts
□Applicable √N/A
(3) Long-term receivables derecognized due to the transfer of financial assets
□Applicable √N/A
(4) Assets and liabilities generated by the transfer of long-term receivables and continuing
involvement therein
□Applicable √N/A
Other descriptions:
□Applicable √N/A
17. Long-term equity investments
√Applicable □N/A
Unit: Yuan Currency: RMB
Investee Beginni- Increase or Current decrease Closing Closing
117 / 185
2021 Semi-annual Report
ng balance balance of
balance provisions
for
Investm impairment
Adjustme
-ent
-nt in Declared
gains or Other Provisions
Additional Decreased other cash
losses equity for Others
investment investment comprehe dividends
under changes impairment
nsive or profits
equity
income
method
I. Joint
ventures
Huzhou Panrui 3,306,63 -5,579. 3,301,050
Industrial 0.57 63 .94
Investment
Partnership
(LP)
Sub-total 3,306,63 -5,579. 3,301,050
0.57 63 .94
II. Associates
Xiongke 2,985,51 -53,464 2,932,046
Culture Media 1.35 .43 .92
(Hangzhou)
Co., Ltd.
Metis 6,304,43 136,36 6,440,797
Information 0.78 6.94 .72
Technology
(Guangzhou)
Co., Ltd.
Jiaxing 45,623,4 28,206,800 -24,953 73,805,33
Woyong 86.90 .00 .93 2.97
Investment
Partnership
(LP)
Zhuhai 99,540,881 -2,349, 97,191,61
Healthlong .10 263.38 7.72
Biotechnology
Co., Ltd.
[Note]
Beijing Xiushi 3,000,000. -78,212 2,921,787
Culture 00 .27 .73
Development
Co., Ltd.
54,913,4 130,747,68 -2,369, 183,291,5
Sub-total
29.03 1.10 527.07 83.06
58,220,0 130,747,68 -2,375, 186,592,6
Total
59.60 1.10 106.70 34.00
Other descriptions
[Note] In April 2021, the Company increased the capital contribution to Zhuhai Healthlong
Biotechnology Co., Ltd. in the form of 52% of equity held by it in Shanghai Healthlong Company. After
the increase in capital contribution completes, Shanghai Healthlong Company becomes a wholly-owned
subsidiary of Zhuhai Healthlong Biotechnology Co., Ltd., and the Company holds 10.00% of equity in
Zhuhai Healthlong Biotechnology Co., Ltd. and has the right to appoint one director to Zhuhai
Healthlong Biotechnology Co., Ltd..
18. Other equity investment
(1). Descriptions of other equity investment
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Regenovo Biotechnology Co., Ltd. 20,580,000.00 20,580,000.00
118 / 185
2021 Semi-annual Report
Total 20,580,000.00 20,580,000.00
(2). Descriptions of investments in non-trading equity instruments
□Applicable √N/A
Other descriptions:
√Applicable □N/A
The Company makes external equity investments based on its strategic investment purposes, and
the investee will regard such investments made by the Company as an equity instrument. Therefore, the
Company designates the aforesaid equity instrument as financial assets at fair value through other
comprehensive income.
19. Other non-current financial assets
□Applicable √N/A
20. Investment property
Measurement of investment properties
(1). Investment properties measured at cost
Unit: Yuan Currency: RMB
Housing and Construction in
Item Land use rights Total
buildings progress
I. Original costs:
1. Opening balance 76,860,032.10 76,860,032.10
2. Current increase 954,717.67 954,717.67
(1) Outsourcing
(2) Transfer from 954,717.67 954,717.67
inventories/fixed assets/
construction in progress
(3) Increase due to
business combinations
3. Current decrease
(1) Disposal
(2) Other transfer-out
4. Closing balance 77,814,749.77 77,814,749.77
II. Accumulated depreciation
and amortization
1. Opening balance 4,622,422.00 4,622,422.00
2. Current increase 1,372,911.82 1,372,911.82
(1) Provision or 1,372,911.82 1,372,911.82
amortization
3. Current decrease
(1) Disposal
(2) Other transfer-out
4. Closing balance 5,995,333.82 5,995,333.82
III. Provisions for impairment
1. Opening balance
2. Current increase
(1) Provision
119 / 185
2021 Semi-annual Report
3. Current decrease
(1) Disposal
(2) Other transfer-out
4. Closing balance
VI. Carrying Amount
1. Closing carrying 71,819,415.95 71,819,415.95
amount
2. Opening carrying 72,237,610.10 72,237,610.10
amount
(2). Investment properties whose title certificate has not completed：
□Applicable √N/A
Other descriptions:
□Applicable √N/A
21. Fixed assets
Line items
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Fixed assets 553,956,322.47 565,864,152.62
Disposal of fixed assets
Total 553,956,322.47 565,864,152.62
Other descriptions:
None
Fixed assets
(1). Descriptions of fixed assets
√Applicable □N/A
Unit: Yuan Currency: RMB
Houses and Special Transportation
Item Total
buildings equipment facility
I. Original costs:
1. Opening balance 533,689,138.34 177,652,603.03 21,224,973.25 62,250,935.84 794,817,650.46
2. Current increase 4,729,102.52 4,584,670.52 51,327.43 3,314,473.03 12,679,573.50
(1) Purchase 1,111,363.72 4,584,670.52 51,327.43 3,314,473.03 9,061,834.70
(2) Transfer from 3,617,738.80 3,617,738.80
construction in progress
(3) Increase due
to business combinations
3. Current 1,612,387.59 2,459,613.77 4,072,001.36
decrease
(1) Disposal or 88,459.72 88,459.72
retirement
(2) Other 1,612,387.59 2,371,154.05 3,983,541.64
transfer-out [note]
4. Closing balance 538,418,240.86 182,237,273.55 19,663,913.09 63,105,795.10 803,425,222.60
II. Accumulated
depreciation
1. Opening balance 89,221,072.09 101,568,423.97 12,505,940.35 25,658,061.43 228,953,497.84
120 / 185
2021 Semi-annual Report
2. Current increase 9,747,892.79 6,479,920.33 960,417.13 4,801,042.96 21,989,273.21
(1) Provision 9,747,892.79 6,479,920.33 960,417.13 4,801,042.96 21,989,273.21
3. Current decrease 425,968.71 1,047,902.21 1,473,870.92
(1) Disposal or
71,332.84 71,332.84
retirement
(2) Other 425,968.71 976,569.37 1,402,538.08
transfer-out
4. Closing balance 98,968,964.88 108,048,344.30 13,040,388.77 29,411,202.18 249,468,900.13
III. Provisions for
impairment
1. Opening balance
2. Current increase
(1) Provision
3. Current decrease
(1) Disposal or
retirement
(2) Other
transfer-out
4. Closing balance
VI. Carrying Amount
1. Closing carrying
439,449,275.98 74,188,929.25 6,623,524.32 33,694,592.92 553,956,322.47
amount
2. Opening carrying 444,468,066.25 76,084,179.06 8,719,032.90 36,592,874.41 565,864,152.62
amount
[Note] Other transfer-out in the original costs of fixed assets amounts to RMB 3,983,541.64 and other
transfer-out in the accumulated depreciation amounts to RMB 1,402,538.08 because the equity in
Shanghai Healthlong Company was disposed, and the original costs and accumulated depreciation of
fixed assets were transferred out correspondingly.
(2). Temporarily idle fixed assets
□Applicable √N/A
(3). Fixed assets leased in under financing leases
□Applicable √N/A
(4). Fixed assets leased out under operating leases
□Applicable √N/A
(5). Fixed assets whose title certificate has not completed
□Applicable √N/A
Other descriptions:
□Applicable √N/A
Disposal of fixed assets
□Applicable √N/A
22. Construction in progress
Line items
√Applicable □N/A
Unit: Yuan Currency: RMB
121 / 185
2021 Semi-annual Report
Item Closing balance Opening balance
Construction in progress 115,081,293.14 47,324,523.36
Project material
Total 115,081,293.14 47,324,523.36
Other descriptions:
None
Construction in progress
(1). Descriptions of construction in progress
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision Provision
Carrying Gross Carrying
Item Gross carrying for
carrying for
amount amount amount
impairment amount impairment
Decoration 1,544,747.89 1,544,747.89 1,725,308.02 1,725,308.02
project
Makeup 27,281,335.63 27,281,335.63 28,236,822.35 28,236,822.35
factory
Proya building
Longwu R&D 9,009,078.59 9,009,078.59
center
construction
project
Huzhou 53,035,577.18 53,035,577.18
production
base expansion
construction
project (phase
I)
Other sporadic 24,210,553.85 24,210,553.85 17,362,392.99 17,362,392.99
projects
Total 115,081,293.14 115,081,293.14 47,324,523.36 47,324,523.36
(2). Changes in significant construction in progress for the period
√Applicable □N/A
122 / 185
2021 Semi-annual Report
Unit: Yuan Currency: RMB
Proportion of Including:
Amount
Other accumulated Accumulated Accumulated Rate of interest
reclassified
Expected Opening Current decreases Closing project Project amount of amount of capitalization Funding
Items into fixed
amount balance increase for the balance investments to progress interest interest for the current source
assets for the
period the budget capitalization capitalization period (%)
period
(%) for the period
Makeup factory 66,110, 28,236,82 405,57 1,361,06 27,281,3 90.70 97.31 Self-
000 2.35 5.23 1.95 3 collected
5.63
Proya building 458,936, 4,572,45 3,617,73 954,71 83.22 100.00 9,206,1 Self-
300 6.47 8.80 7.67 86.05 collected
Longwu R&D 217,744, 9,009,07 9,009,07 4.14 4.14 Self-
center 500 8.59 8.59 collected
construction
project
Huzhou 437,525, 53,035,57 53,035,5 12.12 12.12 Self-
expansion 400 7.18 7 collected
production base 7.18
construction
project (phase
I)
1,180,31 28,236,82 67,022,68 4,978,80 954,71 89,325,9 / / 9,206,1 /
Total 6, 2.35 7.47 0.75 7.67 9 86.05
200 1.40
(3). Provision for decline in value of construction in progress for the period
□Applicable √N/A
Other descriptions
□Applicable √N/A
123 / 185
2021 Semi-annual Report
Project materials
□Applicable √N/A
23. Bearer biological assets
(1). Bearer biological assets measured at cost
□Applicable √N/A
(2). Bearer biological assets measured at fair value
□Applicable √N/A
Other descriptions
□Applicable √N/A
24. Oil and gas assets
□Applicable √N/A
25. Use of right assets
□Applicable √N/A
26. Intangible assets
(1). Descriptions of intangible assets
√Applicable □N/A
Unit: Yuan Currency: RMB
Land use Patent Nonpatented Customer Tradema
Item Software Total
rights rights technology recourses rk right
I. Original costs:
1. Opening 376,212,9 19,559,1 420,000 659,500.00 12,833,6 137,131. 409,822,
balance 28.47 30.84 .00 84.00 75 375.06
2. Current 71,073,39 4,199,36 75,272,7
increase 4.50 6.07 60.57
(1) 71,073,39 4,115,29 75,188,6
Purchase 4.50 5.27 89.77
(2) Internal
research and
development
(3) Increase
due to business
combinations
(4) 84,070.8 84,070.8
Transfer-in from 0 0
construction in
progress
3. Current 427,966. 126,900.00 554,866.
decrease 61 61
(1)
Disposal
(2) Other 427,966. 126,900.00 554,866.
transfer-out [note] 61 61
4. Closing 447,286,3 23,330,5 420,000 532,600.00 12,833,6 137,131. 484,540,
124 / 185
2021 Semi-annual Report
balance 22.97 30.30 .00 84.00 75 269.02
II. Accumulated
amortization
1. Opening 68,955,03 17,764,8 420,000 528,525.00 7,486,31 24,354.0 95,179,0
balance 1.99 24.37 .00 5.67 6 51.09
2. Current 5,633,846. 935,930. 1,630.00 2,138,94 13,637.3 8,723,99
increase 55 62 7.33 7 1.87
(1) 5,633,846. 935,930. 1,630.00 2,138,94 13,637.3 8,723,99
Provision 55 62 7.33 7 1.87
3. Current 288,075. 288,075.
decrease 61 61
(1)
Disposal
(2) Other 288,075. 288,075.
transfer-out [Note] 61 61
4. Closing 74,588,87 18,412,6 420,000 530,155.00 9,625,26 37,991.4 103,614,
balance 8.54 79.38 .00 3.00 3 967.35
III. Provisions for
impairment
1. Opening
balance
2. Current
increase
(1)
Provision
3. Current
decrease
(1)
Disposal
4. Closing
balance
VI. Carrying
Amount
1. Closing 372,697,4 4,917,85 2,445.00 3,208,42 99,140.3 380,925,
carrying amount 44.43 0.92 1.00 2 301.67
2. Opening 307,257,8 1,794,30 130,975.00 5,347,36 112,777. 314,643,
carrying amount 96.48 6.47 8.33 69 323.97
[Note] Other transfer-out in the original costs of fixed assets amounts to RMB 554,866.61 and other
transfer-out in the accumulated depreciation amounts to RMB 288,075.61 because the equity in
Shanghai Healthlong Company was disposed, and the original costs and accumulated depreciation of
fixed assets were transferred out correspondingly.
Proportion of intangible assets generated from the Company’s internal research and development to the
balance of intangible assets at the closing of the period: 0.00%
(2). The right to use the land whose title certificate has not completed
□Applicable √N/A
Other descriptions: none
□Applicable √N/A
27. Development expenditure
□Applicable √N/A
125 / 185
2021 Semi-annual Report
28. Goodwill
(1). Original costs of goodwill
√Applicable □N/A
Unit: Yuan Currency: RMB
Current increase Current decrease
Investee or event Opening Formed by Closing
forming goodwill balance business Disposal balance
combinations
Shanghai Healthlong 31,034,161.20 31,034,161.20
Biochemical
Technology Co., Ltd.
Total 31,034,161.20 31,034,161.20
(2). Provision for impairment of goodwill
□Applicable √N/A
Unit: Yuan Currency: RMB
Current increase Current decrease
Investee or event Opening Closing
Provisi
forming goodwill balance Disposal balance
on
Shanghai Healthlong
Biochemical
Technology Co., Ltd.
Total
(3). Relevant information regarding the asset portfolio and set of asset portfolios to which the
goodwill belongs
□Applicable √N/A
(4). Descriptions of the process of goodwill impairment testing, key parameters (such as the
growth rate of the forecast period, the growth rate of the stable period, the profit rate, the
discount rate and the forecast period, etc. when the present value of future cash flows are
expected, if applicable) and the recognition method of the impairment losses on goodwill:
□Applicable √N/A
(5). Impacts of goodwill impairment testing
□Applicable √N/A
Other descriptions:
□Applicable √N/A
29. Long-term prepaid expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
Opening Other
Item Increase Amortization Closing balance
balance decreases
Decoration 33,212,097.20 5,128,945.23 8,511,189.18 1,038,383.80 28,791,469.45
and rental fee
Endorsement 16,863,206.70 7,783,018.86 9,080,187.84
fee
Garage usage 385,900.48 96,474.96 289,425.52
fee
Software 115,589.15 50,068.15 26,543.16 139,114.14
service fee
126 / 185
2021 Semi-annual Report
Total 50,576,793.53 5,179,013.38 16,417,226.16 1,177,497.94 38,161,082.81
Other descriptions:
Other decreases amount to RMB 1,177,497.94 because the equity in Shanghai Healthlong Company was
disposed, and other long-term prepaid expenses were transferred out correspondingly.
30. Deferred tax assets / deferred tax liabilities
(1). Deferred income tax assets that are not offset
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Deductible Deferred income Deductible Deferred income
temporary taxes temporary taxes
differences Assets differences Assets
Provision for impairment
of assets
Unrealized profits of 34,777,937.02 7,384,724.22 28,021,116.50 7,005,279.12
in-house transactions
Deductible losses 54,823,543.17 13,705,885.79 14,342,610.24 3,585,652.56
Provision for bad debts of 22,958,476.78 5,739,196.02 27,188,715.77 6,796,972.50
accounts receivable
Provision for decline in 15,841,244.67 2,537,346.55 15,796,150.28 2,634,264.73
value of inventories
Effect of share-based 76,964,315.53 16,807,484.60 103,953,760.07 22,803,327.25
payment
Government grants 7,455,808.33 1,118,371.25 8,495,353.33 1,274,303.00
related to assets
Member credits not 8,836,723.45 2,209,180.86 4,487,591.14 1,121,897.79
exchanged
Expected losses on return 5,900,432.41 1,475,108.11 5,755,415.21 1,438,853.81
Total 227,558,481.36 50,977,297.40 208,040,712.54 46,660,550.76
(2). Deferred tax liabilities that are not offset
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Taxable Deferred income Taxable Deferred income
temporary taxes temporary taxes
differences Liabilities differences Liabilities
Value-added valuation of
business combination not
involving enterprises
under common control
Changes in fair value of
other debt investments
Changes in fair value of
other investments in
equity instruments
One-time deduction of 39,572,107.58 6,141,332.95 44,252,231.66 6,874,105.45
depreciation of fixed
assets
Total 39,572,107.58 6,141,332.95 44,252,231.66 6,874,105.45
127 / 185
2021 Semi-annual Report
(3). Deferred income tax assets or liabilities listed as net amount after offset
□Applicable √N/A
(4). Details of unrecognized deferred tax assets
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Deductible temporary
28,452,553.38 25,362,258.78
differences
Deductible losses 409,443,960.15 379,300,493.32
Total 437,896,513.53 404,662,752.10
(5). Deductible losses, for which no deferred tax assets are recognized, will expire in the
following year
√Applicable □N/A
Unit: Yuan Currency: RMB
Year Closing balance Opening balance Note:
2021 48,418,743.43 48,812,246.22
2022 62,924,802.76 62,924,802.76
2023 63,485,783.30 63,485,783.30
2024 99,748,285.21 99,748,285.21
2025 104,329,375.83 104,329,375.83
2026 30,536,969.62
Total 409,443,960.15 379,300,493.32
Other descriptions:
□Applicable √N/A
31. Other non-current assets
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision Provision
Item Gross carrying Carrying Gross carrying Carrying
for for
amount amount amount amount
impairment impairment
Contract
acquisition
cost
Contract
performance
cost
Cost of
returns
receivable
Contract
assets
Prepayment
for
long-term 5,731,163.01 5,731,163.01 87,322,780.03 87,322,780.03
asset
purchase
Total 5,731,163.01 5,731,163.01 87,322,780.03 87,322,780.03
128 / 185
2021 Semi-annual Report
Other descriptions:
None
32. Short-term borrowings
(1). Classification of short-term borrowings
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Pledged borrowings
Mortgaged borrowings
Guaranteed borrowings 99,116,462.50
Credit borrowings 200,000,000.00 200,163,972.59
Total 200,000,000.00 299,280,435.09
Descriptions of classification of short-term borrowings:
None
(2). Descriptions of overdue short-term borrowings
□Applicable √N/A
Other descriptions:
□Applicable √N/A
33. Held-for-trading financial liabilities
□Applicable √N/A
34. Derivative financial liabilities
□Applicable √N/A
35. Notes payable
√Applicable □N/A
Unit: Yuan Currency: RMB
Category Closing balance Opening balance
Commercial acceptance
bills
Bank acceptance bills 63,672,739.08 64,580,000.00
Total 63,672,739.08 64,580,000.00
The total of notes payable due but not yet paid at the closing of the period is RMB 0.00.
36. Accounts payable
(1). Presentations of accounts payable
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Loan 277,661,939.49 428,697,891.17
Expenses payable 56,545,217.33 69,493,675.06
Engineering equipment
12,530,902.29 17,640,465.04
payment
Total 346,738,059.11 515,832,031.27
(2). Significant accounts payable aged more than one year
□Applicable √N/A
129 / 185
2021 Semi-annual Report
Other descriptions:
□Applicable √N/A
37. Advances from customers
(1). Presentation of advances from customers
□Applicable √N/A
(2). Significant advances from customers aged more than one year
□Applicable √N/A
Other descriptions:
□Applicable √N/A
38. Contract liabilities
(1). Descriptions of contract liabilities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Advances from customers 43,983,461.92 25,430,738.70
Member credits not exchanged 8,836,723.45 5,188,040.29
Total 52,820,185.37 30,618,778.99
(2). Significant changes in the carrying amount during the reporting period and reasons therefor
□Applicable √N/A
Other descriptions:
□Applicable √N/A
39. Employee benefits payable
(1). Presentation of employee benefits payable
√Applicable □N/A
Unit: Yuan Currency: RMB
Opening Current
Item Current increase Closing balance
balance decrease
1. Short-term benefits 70,254,622.82 210,468,522.10 228,089,801.82 52,633,343.10
II. Post-employment 573,616.88 10,309,869.38 10,607,813.89 275,672.37
benefits - defined
contribution plans
III. Termination benefits
IV. Other benefits due
within 1 year
Total 70,828,239.70 220,778,391.48 238,697,615.71 52,909,015.47
(2). Presentation of short-term benefits
√Applicable □N/A
Unit: Yuan Currency: RMB
Opening Current Current
Item Closing balance
balance increase decrease
I. Wages or salaries,
bonuses, allowances and 68,643,838.60 191,612,938.58 208,338,101.90 51,918,675.28
subsidies
II. Staff welfare 6,815.56 5,858,508.97 5,855,932.97 9,391.56
III. Social insurance; 882,228.00 7,172,419.81 7,638,847.11 415,800.70
130 / 185
2021 Semi-annual Report
Including: Medical care 776,190.95 6,812,844.77 7,207,183.76 381,851.96
Work-related injury 57,859.33 203,411.07 257,095.72 4,174.68
Maternity 48,177.72 156,163.97 174,567.63 29,774.06
IV. Housing funds; 721,740.66 5,425,796.06 5,858,061.16 289,475.56
V. Union running costs and 398,858.68 398,858.68
employee education costs;
VI. Short-term paid
absences
VII. Short-term profit share
plan
Total 70,254,622.82 210,468,522.10 228,089,801.82 52,633,343.10
(3). Presentation of defined benefit plan
√Applicable □N/A
Unit: Yuan Currency: RMB
Opening
Item Current increase Current decrease Closing balance
balance
1. Basic endowment 546,117.72 9,957,166.67 10,237,307.78 265,976.61
2. Unemployment 27,499.16 352,702.71 370,506.11 9,695.76
3. Enterprise pension fund
Total 573,616.88 10,309,869.38 10,607,813.89 275,672.37
Other descriptions:
□Applicable √N/A
40. Taxes payable
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
VAT 37,072,212.41 25,557,167.53
Consumption tax 465.21 359.31
Business tax
Enterprise income tax 27,853,623.09 32,994,016.76
Individual Income Tax 1,143,757.11 1,193,830.42
Urban maintenance and 1,998,938.64 2,971,080.02
construction tax
Property tax 4,052,264.13 5,822,344.89
Education surcharges 975,674.47 1,469,430.26
Local education surcharges 650,449.65 979,620.14
Stamp tax 84,218.47 330,703.60
Disability security fund 5,886.80 16,737.84
Total 73,837,489.98 71,335,290.77
Other descriptions:
None
41. Other payables
Line items
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest payable
Dividends payable
131 / 185
2021 Semi-annual Report
Other payables 73,609,323.68 75,546,323.32
Total 73,609,323.68 75,546,323.32
Other descriptions:
None
Interest payable
□Applicable √N/A
Dividends payable
□Applicable √N/A
Other payables
(1). Other payables by nature
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Security deposit 54,254,673.00 54,289,062.52
Repurchase obligations of 7,361,933.60 12,653,905.25
restricted shares
Others 11,992,717.08 8,603,355.55
Total 73,609,323.68 75,546,323.32
(2). Other significant payables aged more than one year
√Applicable □N/A
Unit: Yuan Currency: RMB
Reasons for failure to be repaid or
Item Closing balance
carried forward
Repurchase obligations of 7,361,933.60 Repurchase obligations of
restricted shares restricted shares have not been
fulfilled fully
Total 7,361,933.60 /
Other descriptions:
□Applicable √N/A
42. Held-for-sale liabilities
□Applicable √N/A
43. Non-current liabilities due within one year
□Applicable √N/A
44. Other current liabilities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Short-term bonds payable
Returns payable
132 / 185
2021 Semi-annual Report
Pending output VAT 2,149,196.85 1,439,262.02
Total 2,149,196.85 1,439,262.02
Changes in short-term bonds payable:
□Applicable √N/A
Other descriptions: None
□Applicable √N/A
45. Long-term borrowings
(1). Classification of long-term borrowings
□Applicable √N/A
Other explanations, including interest rate range:
□Applicable √N/A
46. Bonds payable
(1). Bonds payable
□Applicable √N/A
(2). Changes in bonds payable (excluding preferred stocks, perpetual bonds and other financial
instruments classified as financial liabilities)
□Applicable √N/A
(3). Descriptions of conversion condition and time for convertible corporate bonds
□Applicable √N/A
(4). Descriptions of other financial instruments classified as financial liabilities
Basic information of outstanding preferred shares, perpetual bonds and others financial instruments at
the closing of the period
□Applicable √N/A
Table of changes in outstanding preferred shares, perpetual bonds and others financial instruments at the
closing of the period
□Applicable √N/A
Basis for other financial instruments classified as financial liabilities
□Applicable √N/A
Other descriptions:
□Applicable √N/A
47. Lease liabilities
□Applicable √N/A
48. Long-term payables
Line items
□Applicable √N/A
133 / 185
2021 Semi-annual Report
Long-term payables
□Applicable √N/A
Special payables
□Applicable √N/A
49. Long-term employee benefits payable
□Applicable √N/A
50. Estimated liabilities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Opening balance Closing balance Reason
Guarantees provided to
outsiders
Pending lawsuits
Quality assurance
Restructuring
obligations
Onerous contract to be
performed
10,190,099.22 6,052,681.88 Possible future losses on
Returns payable
return expected
Others
Total 10,190,099.22 6,052,681.88 /
Other descriptions, including those of important assumptions and estimation related to significant
estimated liabilities:
None
51. Deferred income
Deferred income
√Applicable □N/A
Unit: Yuan Currency: RMB
Opening Current
Item Current increase Closing balance Reason
balance decrease
Government 8,495,353.33 1,039,545.00 7,455,808.33 Allocated by the
grants government
Total 8,495,353.33 1,039,545.00 7,455,808.33 /
Projects involving government grants
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount Amount
Additional
recognized in recognized in
government
Opening non-operating other Other Closing Related to
Liabilities grants for
balance income for comprehensive changes balance assets/income
the current
the current income for the
period
period current period
Subsidy for 8,495,353.33 1,039,545.00 7,455,808.33 Related to
134 / 185
2021 Semi-annual Report
technological assets
innovation of
cosmetics
Other descriptions:
√Applicable □N/A
The government subsidies recognized in profit or loss for the current period are seen in the VII. 84
Descriptions of government grants in Section X Financial Report for details.
52. Other non-current liabilities
□Applicable √N/A
53. Share capital
√Applicable □N/A
Unit: Yuan Currency: RMB
Changes this time (+ or -)
Opening Issue of Reserves Closing
balance Bonus balance
new Conversion Others Sub-total
shares
shares of shares
Total 201,116,925 201,116,925
shares
Other descriptions:
Descriptions of share pledge
As of June 30, 2021, the details of the frozen shares of majority shareholders of the Company are as
follows:
Shareholder Total number of Number of frozen Freeze type
shares held (share) shares (share)
Fang Yuyou 42,211,691 11,920,000 Pledge
Sub-total 42,211,691 11,920,000
54. Other equity instruments
(1) Basic information of outstanding preferred shares, perpetual bonds and others financial
instruments at the closing of the period
□Applicable √N/A
(2) Table of changes in outstanding preferred shares, perpetual bonds and others financial
instruments at the closing of the period
□Applicable √N/A
Changes in other equity instruments, reasons therefor and basis for relevant accounting treatment:
□Applicable √N/A
Other descriptions:
□Applicable √N/A
55. Capital reserve
√Applicable □N/A
135 / 185
2021 Semi-annual Report
Unit: Yuan Currency: RMB
Item Opening balance Current increase Current decrease Closing balance
Capital premium 794,285,959.20 8,816,160.85 790,675.05 802,311,445.00
(share premium)
Other capital 42,748,877.49 4,787,988.53 8,816,160.85 38,720,705.17
reserves
Total 837,034,836.69 13,604,149.38 9,606,835.90 841,032,150.17
Other descriptions, including changes for the current period and reasons therefor:
1) Changes in capital premium
The capital premium (share premium) for the period increased by RMB 8,816,160.85, because
other capital reserves recognized during the vesting period for the vested portion of restricted shares
issued under share incentive plan were transferred to the share premium.
The capital premium (share premium) for the period decreased by RMB 790,675.05, because: ①
the decrease by RMB 706,570.34 was caused by purchase of the minority shareholders’ equity of the
subsidiary Shanghai Zhongwen Electronic Commerce Co., Limited, and was the difference between the
payment and the share of the subsidiary’s identifiable net assets calculated according to the
newly-increased shareholding ratio; ② the decrease by RMB 84,104.71 was caused by purchase of the
minority shareholders’ equity of Hongkong Zhongwen Electronic Commerce Co., Limited by the
subsidiary Hongkong Xinghuo Industry Limited, and was the difference between the payment and the
share of the subsidiary’s identifiable net assets calculated according to the newly-increased shareholding
ratio.
2) Changes in other capital reserves
Other capital reserves for the period increased by RMB 4,787,988.53 because: ① the increase by
RMB 3,763,087.45 included RMB 2,262,118.91 of the restricted share incentive expenses from January
to June 2021 recognized pursuant to the Company’s share incentive plan, which was charged to other
capital reserves; and included RMB 1,500,968.54 of the deferred tax assets for the excess of the amount
expected to be deductible before tax in the future periods over the recognized restricted share incentive
expenses, which was charged to other capital reserves; ② the increase by RMB 1,024,901.08 was the
difference between the actual deductible amount of the vested portion and the amount previously
recognized, which was treated an adjustment to the capital reserve.
Other capital reserves for the period decreased by RMB 8,816,160.85, because the other capital
reserves recognized during the vesting period for the vested portion of restricted shares issued under
share incentive plan were transferred to the share premium.
56. Treasury stock
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Opening balance Current increase Current decrease Closing balance
Restricted shares 12,653,905.25 5,291,971.65 7,361,933.60
with repurchase
obligations
Total 12,653,905.25 5,291,971.65 7,361,933.60
Other descriptions, including changes for the current period and reasons therefor:
The reason for the current decrease by RMB 5,291,971.65 was that: 1) the decrease by RMB
4,964,976.45 was caused by the release of 293,265 restricted shares (the grant price of RMB 17.95/share
less RMB 1.02/share for accumulated dividends) by the Company pursuant to the Proposal on the
Satisfaction of Vesting Conditions for the Second Release Period of the Initially Granted Restricted
Shares and the Granted Reserved Portion under the 2018 Restricted Share Incentive Plan reviewed and
approved by the 18th meeting of the second board of directors dated January 5, 2021; 2) the decrease by
RMB 326,995.20 was caused by the distributed dividends of 454,160 restricted shares that have not been
vested being offset against treasury shares and the corresponding adjustments to other payables.
136 / 185
2021 Semi-annual Report
57. Other comprehensive income
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount for the current period
less: Amounts
less: Amounts
included in
included in
other
Amounts other
comprehensive Attributable
Opening before comprehensive Attributable Closing
Item income for less: to the
balance income tax income for to minority balance
prior periods Income tax parent
for the prior periods interests
and transferred expenses company
current and transferred after tax
to the retained after tax
period to the profit or
earnings for
loss for the
the current
current period
period
(I) Other
comprehensive
income that
cannot be
subsequently
reclassified to
profit or loss
Including:
Changes from
re-measurement
of defined
benefit plans
Other
comprehensive
income that
cannot be
reclassified to
profit or loss
under the
equity method
Changes in
fair value of
other
investments in
equity
instruments
Changes in
fair value of
enterprises’
own credit risks
II. Other -269,066.13 -396,595.34 -396,595.34 -665,661.47
comprehensive
income that
will be
reclassified to
profit or loss
Including:
Other
comprehensive
income that
will be
reclassified to
profit or loss
under the
equity method
Changes in
fair value of
other debt
investments
Amounts of
financial assets
reclassified into
other
comprehensive
income
Provision for
credit
impairment of
other debt
investments
Reserve for
cash flow
137 / 185
2021 Semi-annual Report
hedges
Translation -269,066.13 -396,595.34 -396,595.34 -665,661.47
differences of
financial
statements
denominated in
foreign
currencies
Total of other -269,066.13 -396,595.34 -396,595.34 -665,661.47
comprehensive
income
Other descriptions, including adjustment of the effective part of the cash flow hedge gains and losses
transferred to initially recognized amount of hedged items:
None
58. Special reserve
□Applicable √N/A
59. Surplus reserve
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Opening balance Current increase Current decrease Closing balance
Statutory surplus 100,634,780.00 100,634,780.00
reserve
Discretionary
surplus reserve
Reserve funds
Enterprise
development fund
Others
Total 100,634,780.00 100,634,780.00
Descriptions of surplus reserve, including changes for the current period and reason therefor:
In accordance with the provisions of the Company Law, where the accumulated amount of the statutory
surplus fund of the Company exceeds 50 percent of its registered capital, further allocation may be
dispensed with.
60. Unappropriated profit
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Repayment for the period Previous year
Adjustments to unappropriated profit at
1,265,671,865.63 908,411,607.62
the closing of the period period
Total adjustments to unappropriated
profits at the opening of the period
(increase indicated by “+”, or decrease
indicated by “-”)
Unappropriated profit at the opening of
1,265,671,865.63 908,411,607.62
the period after adjustment
Add: Net profit attributable to owners
of the parent company for the current 226,101,313.86 476,009,298.41
period
less: Appropriation to statutory surplus
reserve
Appropriation to discretionary
surplus reserve
138 / 185
2021 Semi-annual Report
Appropriation to general risk
reserve
Common stock dividends payable 144,804,186.00 118,749,040.40
Common stock dividends
transferred to share capital
Closing unappropriated profit 1,346,968,993.49 1,265,671,865.63
Details of adjustments to unappropriated profit at the opening of the period:
1. As a result of the retrospective adjustment under the Accounting Standards for Business Enterprises
and related new regulations, unappropriated profit at the opening of the period were affected by
RMB0.00.
2. Unappropriated profit at the opening of the period was affected by RMB0.00 due to changes in
accounting policies.
3. Unappropriated profit at the opening of the period was affected by RMB0.00 due to the correction of
significant accounting errors.
4. Unappropriated profit at the opening of the period was affected by RMB0.00 due to changes in the
scope of consolidation resulting from business combination involving enterprises under common
control.
5. Unappropriated profit at the opening of the period was affected by RMB0.00 in total due to other
adjustments.
61. Revenue and cost of revenue
(1). Descriptions of revenue and cost of revenue
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount for the current period Amount for the prior period
Item
Revenue Cost Revenue Cost
Main 1,382,135,112.85 552,948,536.81
1,911,280,464.91 690,938,535.18
operations
Other 2,188,736.03 2,171,918.35
6,438,032.69 4,619,754.01
operations
Total 1,917,718,497.60 695,558,289.19 1,384,323,848.88 555,120,455.16
(2). Descriptions of revenue generated from contacts
□Applicable √N/A
(3). Descriptions of performance obligations
□Applicable √N/A
(4). Descriptions of allocation to remaining performance obligations
□Applicable √N/A
Other descriptions:
None
62. Taxes and surcharges
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Consumption tax 56,425.63 19,373.48
Business tax
139 / 185
2021 Semi-annual Report
Urban maintenance and 7,913,902.31 4,642,273.84
construction tax
Education surcharges 3,977,896.25 2,391,100.89
Resource tax
Property tax 4,052,644.03 2,136,089.34
Land use taxes
Vehicle and vessel use tax 2,670.00 3,210.00
Stamp Tax 634,586.22 712,908.54
Local education surcharges 2,651,930.83 1,594,067.26
Total 19,290,055.27 11,499,023.35
Other descriptions:
None
63. Selling expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount for the current Amount for the prior
Item
period period
Image publicity and promotion 651,005,247.16 334,763,800.09
Employee benefits 127,270,225.97 97,805,241.40
Travel 6,519,683.82 6,426,413.51
Conference 5,684,285.16 2,382,019.59
Office 14,176,924.87 8,889,179.33
Investigation and consulting 513,801.62 5,697,435.22
Others 2,034,463.16 1,450,343.06
Total 807,204,631.76 457,414,432.20
Other descriptions:
None
64. General and administrative expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Employee benefits and labor costs 64,177,881.74 47,708,602.55
Share-based payments 2,262,118.91 5,103,364.67
Depreciation, amortization and lease 22,632,216.20 23,380,666.23
Office and business entertainment 16,334,487.33 10,813,515.29
Consulting and intermediary agency 4,861,065.35 9,116,773.89
Travel, transportation and conference 996,613.03 956,944.85
Others 4,926,790.49 3,102,487.67
Total 116,191,173.05 100,182,355.15
Other descriptions:
None
65. Research and development expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
140 / 185
2021 Semi-annual Report
Labor costs 20,466,648.49 21,620,983.90
Entrusted research and development fees 8,826,262.44 5,508,591.48
Depreciation, amortization and lease fees 1,053,552.11 1,985,453.64
Direct investments 785,036.60 1,202,200.16
Others 239,844.82 1,547,915.78
Total 31,371,344.46 31,865,144.96
Other descriptions:
None
66. Financial expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Interest expenses 5,082,866.57 2,502,979.38
Interest income -11,723,066.05 -8,171,010.26
Handling costs 406,429.79 458,089.60
Foreign exchange gains or losses 4,369,640.90 -2,164,539.48
Total -1,864,128.79 -7,374,480.76
Other descriptions:
None
67. Other income
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Government grants 9,370,319.81 8,020,757.76
Return of handling costs 467,054.66 394,975.03
Additional VAT input tax credit 322,433.43 110,916.18
Total 10,159,807.90 8,526,648.97
Other descriptions:
The government subsidies recognized in profit or loss for the current period are seen in the VII. 84
Descriptions of government grants in Section X Financial Report for details.
68. Investment income
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount for the current
Item Amount for the prior period
period
Income from long-term equity -2,375,106.70 -208,988.41
investment accounted for using the
equity method
Income from disposal of long-term -3,546.24 261,034.21
equity investments
Investment income from
held-for-trading financial assets during
the holding period
Dividend income from other equity
investment instruments during the
holding period
Interest income from debt investment
141 / 185
2021 Semi-annual Report
during the holding period
Interest income from other debt
investments during the holding period
Investment income from disposal of
held-for-trading financial assets
Investment income from disposal of
other investments in equity instruments
Investment income from disposal of
debt investments
Investment income from disposal of
other debt investments
Income from wealth management 2,266,301.37
products
Total -2,378,652.94 2,318,347.17
Other descriptions:
None
69. Net exposure hedging income
□Applicable √N/A
70. Income from changes in fair values
□Applicable √N/A
71. Impairment losses of credit
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount for the current
Item Amount for the prior period
period
Losses on bad debts of notes receivable
Losses on bad debts of accounts 3,785,095.76 3,700,637.96
receivable
Losses on bad debts of other receivables -829,303.17 -4,842,904.18
Losses on impairment of debt
investments
Losses on impairment of other debt
investments
Losses on bad debts of long-term
receivables
Losses on impairment of contract assets
Total 2,955,792.59 -1,142,266.22
Other descriptions:
None
72. Asset impairment losses
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount for the current
Item Amount for the prior period
period
I. Losses on bad debts -8,625,168.59
II. Losses on decline in value of -9,651,315.34
142 / 185
2021 Semi-annual Report
inventories and on impairment of
contract performance costs
III. Losses on impairment of
long-term equity investments
IV. Losses on impairment of property
V. Losses on impairment of fixed
assets
VI. Losses on impairment of project
materials
VII. Losses on impairment of
construction in progress
VIII. Losses on impairment of bearer
biological assets
IX. Losses on impairment on oil and
gas assets
X. Losses on impairment of
intangible assets
XI. Losses on impairment of
goodwill
XII. Others
Total -8,625,168.59 -9,651,315.34
Other descriptions:
None
73. Income from disposal of assets
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Income from disposal of fixed -1,416.28
assets
Total -1,416.28
Other descriptions:
□Applicable √N/A
74. Non-operating income
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount included in the
Amount for the current Amount for the prior non-recurring profit or
Item
period period loss for the current
period
Total gains or losses
from disposal of
non-current assets;
Including: Gains from
disposal of fixed
assets
Gain from
disposal of intangible
assets
Gains from debt
restructuring
143 / 185
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Gains from exchange
of non-monetary
assets
Acceptance of
donations
Government grants
Payments that do not 258,167.68
need to be paid
Income from 54,435.00 54,435.00
confiscation and
liquidated damages
Others 60,008.12 147,700.63 60,008.12
114,443.12 405,868.31
Total
114,443.12
Government grants included in current profit or loss
□Applicable √N/A
Other descriptions:
□Applicable √N/A
75. Non-operating expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount included in the
Amount for the current Amount for the prior non-recurring profit or
Item
period period loss for the current
period
Total losses on 2,541.25
disposal of
non-current assets;
Including: Losses on
disposal of fixed
assets
Losses on
disposal of assets
Losses on debt
restructuring
Losses on exchange
of non-monetary
assets
Offer of donations 15,106,421.65
Others 60,174.49 396,831.91 60,174.49
Total 60,174.49 15,505,794.81 60,174.49
Other descriptions:
None
76. Income tax expenses
(1) Table of income tax expenses
√Applicable □N/A
Unit: Yuan Currency: RMB
144 / 185
2021 Semi-annual Report
Item Amount for the current period Amount for the prior period
Current income tax 46,005,920.10 48,977,958.94
Deferred income tax -2,523,649.52 -2,093,955.30
Total 43,482,270.58 46,884,003.64
(2) Reconciliation of income tax expenses to the accounting profit
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount for the current period
Total profit 252,131,763.97
Income tax expenses calculated at 63,032,940.99
legal/applicable tax rate
Effect of different tax rates among different -19,639,316.92
subsidiaries on income tax expenses
Effect of adjustments to income tax in prior 301,443.10
periods
Effect of nontaxable income
Effect of non-deductible costs, expenses and 269,390.94
losses
Effect of deductible tax losses for which no -1,024,901.08
deferred tax assets were recognized in prior
periods
Effect of deductible tax losses or deductible 4,591,378.58
temporary differences for which no deferred tax
asset was recognized in the current period
Additional deduction of R&D expense -4,048,665.03
Income tax expenses 43,482,270.58
Other descriptions:
□Applicable √N/A
77. Other comprehensive income
√Applicable □N/A
For details, please see the Note VII 57 of Section X Financial Report.
78. Items in the cash flow statement
(1). Other cash receipts relating to operating activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Bank deposit interest income 11,723,066.05 6,293,169.16
Government grants 2,840,774.81 7,066,546.09
Intercourse funds and others 27,195,817.12 13,986,126.29
Total 41,759,657.98 27,345,841.54
Descriptions of other cash receipts relating to operating activities:
None
(2). Other cash payments relating to operating activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
145 / 185
2021 Semi-annual Report
Image publicity and promotion 629,544,186.17 339,476,948.33
Other cash payments 165,528,596.63 60,364,118.72
Intercourse funds and others 49,745,240.01 67,229,843.63
Total 844,818,022.81 467,070,910.68
Descriptions of other cash payments relating to operating activities:
None
(3). Other cash receipts relating to investing activities
□Applicable √N/A
(4). Other cash payments relating to investing activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Net cash payments received from
61,087,857.19 1,579,710.89
disposal of subsidiaries
Total 61,087,857.19 1,579,710.89
Descriptions of other cash payments relating to investing activities:
None
(5). Other cash receipts relating to financing activities
□Applicable √N/A
(6). Other cash payments relating to financing activities
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Payments for share repurchase
Payments for minority shareholders’
equity 486,631.52
Total 486,631.52
Descriptions of other cash payments relating to financing activities:
None
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
√Applicable □N/A
Unit: Yuan Currency: RMB
Supplementary information Amount for the current period Amount for the prior period
1. Reconciliation of net profit to
cash flow from operating activities:
Net profit 208,649,493.39 173,684,403.26
Add: Provision for asset impairment 8,625,168.59 9,651,315.34
Losses on credit impairment -2,955,792.59 1,142,266.22
Depreciation of fixed assets, depletion 23,362,185.03 21,086,926.72
of oil and gas assets, depreciation of
bearer biological assets
Amortization of use of right assets
Amortization of intangible assets 8,723,991.87 7,451,720.65
146 / 185
2021 Semi-annual Report
Amortization of long-term prepaid 16,417,226.16 15,323,234.42
expenses
Losses on disposal of fixed assets, 1,416.28
intangible assets and other long-term
assets (gain is indicated by “-”)
Losses on retirement of fixed assets 2,541.25
(gain is indicated by “-”)
Losses on changes in fair values (gain
is indicated by “-”)
Financial expenses (gain is indicated 5,082,866.57 2,502,979.38
by “-”)
Investment losses (gain is indicated by 2,378,652.94 -2,318,347.17
“-”)
Decrease in deferred tax assets -1,790,877.02 -9,803,891.20
(increase is indicated by “-”)
Increase in deferred tax liabilities -732,772.50 1,320,203.93
(decrease is indicated by “-”)
Decrease in inventories (increase is 94,250,565.71 -95,079,103.25
indicated by “-”)
Decrease in receivables from 49,348,525.29 -42,304,967.59
operating activities (increase is
indicated by “-”)
Increase in payables from operating -145,185,070.90 -46,094,903.08
activities (decrease is indicated by “-”)
Others
Net cash flow from operating 266,175,578.82 36,564,378.88
activities
2. Significant investing and
financing activities that do not
involve cash receipts and payments:
Conversion of debts into capital
Convertible corporate bonds due
within one year
Fixed assets leased in under financing
leases
3. Net changes in cash and cash
equivalents:
Closing balance of cash 1,228,370,225.03 1,207,995,301.92
less: Opening balance of cash 1,401,850,754.88 1,099,092,785.07
Add: Closing balance of cash
equivalents
less: Opening balance of cash
equivalents
Net increase in cash and cash -173,480,529.85 108,902,516.85
equivalents
(2) Net cash payments paid for acquisitions of subsidiaries for the current period
□Applicable √N/A
(3) Net cash payments received from disposal of subsidiaries for the current period
√Applicable □N/A
Unit: Yuan Currency: RMB
amount
147 / 185
2021 Semi-annual Report
Net cash payments received in the current period from current
disposal of subsidiaries
Including: Shanghai Healthloog Company
Less: Cash and cash equivalents held by subsidiaries on the date 61,087,857.19
when the control is lost
Including: Shagnhai Healthloog Company 61,087,857.19
Add: Net cash payments received in the current period from prior
disposal of subsidiaries
Net cash payments received from disposal of subsidiaries -61,087,857.19
Other descriptions:
1) In April 2021, the Company increased the capital contribution to Zhuhai Healthlong Biotechnology
Co., Ltd. in the form of 52% of equity held by it in Shanghai Healthlong Company. After the increase in
capital contribution completes, Shanghai Healthlong Company becomes a wholly-owned subsidiary of
Zhuhai Healthlong Biotechnology Co., Ltd., and the Company holds 10.00% of equity in Zhuhai
Healthlong Biotechnology Co., Ltd. and has the right to appoint one director to Zhuhai Healthlong
Biotechnology Co., Ltd..
2) RMB 61,087,857.19 of cash and cash equivalents held by Shanghai Healthlong Company on the date
when the control is lost is presented in the item “Other cash payments relating to investing activities” in
the statements.
(4) Composition of cash and cash equivalents
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
I. Cash 1,228,370,225.03 1,401,850,754.88
Including: Cash on hand 4,920.44 26,853.58
Cash at bank that can be readily 1,211,495,817.76 1,368,515,531.05
drawn on demand
Other cash balances that can be 16,869,486.83 33,308,370.25
readily drawn on demand
Other cash balances with the
central bank that can be readily
drawn on demand
Interbank deposit
Interbank loans
II. Cash equivalents
Including: Debt investments due
within three months
III. Closing balance of cash and cash 1,228,370,225.03 1,401,850,754.88
equivalents
Including: Cash and cash equivalent
with the limited use of the parent
company or subsidiaries within the
Group
Other descriptions:
√Applicable □N/A
Descriptions of supplementary information to the cash flow statement
Unit: Yuan Currency: RMB
Balance of currency Cash and cash
Date Difference Reason
funds equivalents
148 / 185
2021 Semi-annual Report
Closing bank deposits include
RMB 293,481.72 of the security
deposit of fixed time deposit for
June 30,
1,236,337,706.75 1,228,370,225.03 7,967,481.72 the transformer, and the other
2021 currency funds including RMB
7,000,000.00 of L/C security
deposit, and RMB 674,000.00 of
Tmall and Alipay security deposit
i.e. RMB 293,481.72 of security
deposit of fixed time deposit for
the transformer, RMB 69,000.00
of ETC vehicle security deposit,
December
1,416,654,640.93 1,401,850,754.88 14,803,886.05 and RMB 7,036,404.33 of land
31, 2020 construction security deposit,
RMB 7,000,000.00 of L/C
security deposit and RMB
405,000.00 of Tmall and Alipay
security deposit
80. Notes to statement of changes in owners’ equity
Descriptions of name of the item “Others” and amount adjusted for the balance at the end of the previous
year:
□Applicable √N/A
81. Assets with restrictions in ownership or use right
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Carrying balance at the end of the Reasons for restriction
period
Currency funds 7,967,481.72 Security deposit for the
transformer, L/C security
deposit, and Tmall and Alipay
security deposit, etc.
Notes receivable
Inventories
Fixed assets
Intangible assets
Total 7,967,481.72 /
Other descriptions:
None
82. Monetary items denominated in foreign currency
(1). Monetary items denominated in foreign currency
√Applicable □N/A
Unit: Yuan Currency: RMB
Translated balance in
Closing balance of
Item Exchange rate RMB at the closing
foreign currency
of the period
Currency funds - - 89,218,164.09
Including: USD 546,815.67 6.4601 3,532,483.91
EUR 10,773,685.74 7.6862 82,808,703.33
HKD 3,080,390.55 0.83208 2,563,131.37
JPY 2,080.00 0.058428 121.53
149 / 185
2021 Semi-annual Report
CHF 22,953.14 7.0134 160,979.55
KRW 26,727,215.68 0.005714939 152,744.40
Accounts receivable - - 10,600,782.49
Including: EUR 435,991.03 7.6862 3,351,114.25
HKD 57,139.03 0.83208 47,544.24
KRW 1,260,227,657.83 0.005714939 7,202,124.00
Long term loans - -
Including: USD
EUR
HKD
Other receivables - - 22,478,490.10
Including: USD 31,473.43 6.4601 203,321.51
EUR 2,865,596.08 7.6862 22,025,544.59
HKD 300,000.00 0.83208 249,624.00
Accounts payable - - 14,083,527.34
Including: USD 92,803.00 6.4601 599,516.66
EUR 1,700,134.55 7.6862 13,067,574.18
HKD 192,437.43 0.83208 160,123.34
KRW 44,849,676.83 0.005714939 256,313.16
Other payables - - 160,672.30
Including：HKD 5,975.00 0.83208 4,971.68
KRW 27,244,495.00 0.005714939 155,700.62
Other descriptions:
None
(2). Descriptions of overseas operating entities, including disclosure of the main overseas
business locations, functional currency and the basis for selection of important overseas operating
entities, and the reasons for changes in functional currency (if any)
√Applicable □N/A
HAPSODE Co., Ltd., HANNA COSMETICS CO., LTD and Y.N.M. Cosmetics Co., Ltd. operate in
South Korea and their operating income and costs are mainly denominated in KRW, so they use KRW
as their functional currency; Hongkong Xinghuo Industry Limited, Hong Kong Zhongwen Electronic
Commerce Co., Limited, Hong Kong Xuchen Trading Limited, Hongkong Keshi Trading Limited,
BOYA (Hong Kong) Investment Management Co., Limited and Hongkong Wanyan Electronic
Commerce Co., Limited operate in Hong Kong, with RMB as the accounting currency; Off & Relax Co.,
Ltd. is located in Japan, with business income and expenditure dominated by Japanese Yen, which is
used as the accounting currency.
83. Hedging
□Applicable √N/A
84. Government grants
1. Basic information of government grants
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount included in
Category Amount Line item profit or loss for the
current period
Government subsidies
1,039,545.00 Other income 1,039,545.00
related to assets
Government subsidies
8,330,774.81 Other income 8,330,774.81
related to income
150 / 185
2021 Semi-annual Report
2. Return of government grants
□Applicable √N/A
Other descriptions
1) Government subsidies related to assets
Line items
Opening Newly-added Amortization Closing of
Items deferred grants for for the deferred amortization Note
income the period period income for the
period
Subsidy for
technological 8,495,353.33 1,039,545.00 7,455,808.33 Other income
innovation of
cosmetics
8,495,353.33 1,039,545.00 7,455,808.33
Sub-total
According to the Decision on Awards for Technological Innovation of Proya Cosmetics Co., Ltd.
Huzhou Branch by the People’s Government of Daixi Town, Huzhou City, the Company received a
technological innovation subsidy of RMB 14,561,400.00 from the People’s Government of Daixi Town
in 2014, which was apportioned evenly over the useful life of related assets resulted therefrom by the
Company, and RMB 728,070.00 of which was recognized in other income for the current period.
According to the Notice on Distributing the 2015 Industry-driven City Construction and
Development Funds (First Batch) (Hu Cai Qi [2015] No. 150) by Huzhou Finance Bureau and Huzhou
Economic and Information Technology Commission, the Company received a technological innovation
subsidy of RMB 2,350,000.00 from Huzhou Finance Bureau in 2015, which was apportioned evenly
over the useful life of related assets resulted therefrom by the Company, and RMB 117,500.00 of which
was recognized in other income for the current period.
According to the Notice on Distributing 2014 Special Funds (Second Batch) for District “Machine
Replacing People” Project (Wu Fa Gai [2015] No. 18) by the Development Reform and Economic
Commission of Wuxing District, Huzhou City and the Finance Bureau of Wuxing District, the Company
received a technological innovation subsidy of RMB 500,000.00 from the Finance Bureau of Wuxing
District in 2015, which was apportioned evenly over the useful life of related assets resulted therefrom
by the Company, and RMB 25,000.00 of which was recognized in other income for the current period.
According to the Notice on Distributing the 2018 Special Funds for Industrial Development in
Huzhao City (Second Batch) (Hu Cai Qi [2018] No. 319) by Huzhou Finance Bureau and Huzhou
Economic and Information Technology Commission, the Company received a technological innovation
subsidy of RMB 1,379,500.00 from Huzhou Finance Bureau in December 2018, which was apportioned
evenly over the useful life of related assets resulted therefrom by the Company, and RMB 68,975.00 of
which was recognized in other income for the current period.
According to the Notice on Appropriation of Special Subsidy Funds for Demonstration Smart
Workshops in Wuxing District in 2019 (Wu Cai Qi Han [2020] No. 145), issued by the Finance Bureau
of Wuxing District and the Development Reform and Economic Commission of Wuxing District, the
Company received a special subsidy for demonstration smart workshops of RMB 2,000,000.00 from the
Finance Bureau of Wuxing District in May 2020, which was apportioned evenly over the useful life of
related assets resulted therefrom by the Company, and RMB 100,000.00 of which was recognized in
other income for the current period.
2) Government grants related to income as compensation for related expenses or losses of the
Company to be incurred in subsequent periods
Project Amount Line item Description
According to the Notice on Implementing Subsidies
for Corporate Work-based Trainings (Hang Ren
She Fa [2020] No. 94) by Hangzhou Bureau of
Subsidy for work-based 294,500.00 Other income Human Resources and Social Security and
trainings
Hangzhou Finance Bureau, Hangzhou Vocational
Ability Building Guidance Service Center caused
the special fund account for employment (funds for
151 / 185
2021 Semi-annual Report
skill improvement actions) to allocate the subsidy
to the Company.
According to the Notice of Zhejiang Department of
Finance on Early Distributing 2020 Special Funds
for Market Supervision and Intellectual Property
Subsidy for invention 127,160.00 Other income (Zhe Cai Hang [2019] No. 51), the Market
patent
Supervision and Administration of Xihu District,
Hangzhou City allocated the subsidy to the
Company.
,The Finance Bureau of Meishan Free Trade Port
Industry support subsidy 5,490,000.00 Other income Zone, Ningbo allocated the subsidy to the
Company.
According to the Notice on Distributing the Second
Special funds for
Batch of Special Funds for Scientific and
scientific and Technological Development in 2021 (Zhe Cai Ke
250,000.00 Other income Jiao [2021] No. 11) by Zhejiang Department of
technological
Finance and Zhejiang Department of Science and
development Technology, the Finance Bureau of Wuxing
District allocated the subsidy to the Company.
According to the Three-year Action Plan for the
Awards for high and new
Cultivation of High-tech Enterprises in Hangzhou
technology enterprises (2018-2020) by the General Office of the
200,000.00 Other income Hangzhou Municipal People’s Government, the
that are supported by the
Science and Technology Bureau of Xihu District,
State Hangzhou City allocated the subsidy to the
Company.
According to the Notice on Distributing the Fifth
Batch of Special Funds for Talent Development in
Special funds for talent
180,000.00 Other income 2020 by the Organization Department of the CPC
development Huzhou City Committee, the Finance Bureau of
Wuxing District, Huzhou City allocated the
subsidy to the Company.
Job stabilization subsidy,
special fund subsidy for The Resources and Social Security Bureau of
service enterprises, Wuxing District, Huzhou City, Hangzhou
Employment Management Service Center, the
intellectual property 1,789,114.81 Other income Market Supervision and Administration of Xihu
subsidy, financial support District, Hangzhou City, and the Finance Bureau of
Qingpu District, Shanghai allocated the subsidy to
fund from Finance the Company.
Bureau of Qingpu, etc.
Sub-total 8,330,774.81
3) RMB 9,370,319.81 of government grants was recognized in profit or loss for the current period.
85. Others
□Applicable √N/A
VIII. Changes in the Consolidation Scope
1. Business combination not involving enterprises under common control:
□Applicable √N/A
152 / 185
2021 Semi-annual Report
2. Business combination involving enterprises under common control
□Applicable √N/A
3. Reverse purchase
□Applicable √N/A
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4. Disposal of subsidiaries
Was there any circumstance under which a single disposal of the investment in subsidiaries will lose
control?
□Applicable √N/A
Other descriptions:
□Applicable √N/A
5. Changes in scope of consolidation due to other reasons
Descriptions of changes in scope of consolidation caused by other reasons (such as establishment of a
new subsidiary and liquidation of a subsidiary, etc.) and their relevant information:
√Applicable □N/A
(I) Increase in the scope of consolidation
Company name Method of equity Time of equity Capital contribution
Contribution ratio
acquisition acquisition (RMB)
Xuzhou Proya Newly
Information
established January 2021 500,000.00 100.00%
Technology Co.,
Ltd. subsidiary
Proya (Hainan) Newly
Cosmetics Co.,
established January 2021 100.00%
Ltd.
subsidiary
(II) Decrease in the scope of consolidation
Net profit from the
opening of the
Company name Method of disposal Time of disposal of Daily net assets
period to the
of equity equity disposed (RMB)
disposal date
(RMB)
Shanghai Tiyu
Cosmetics Co., Cancellation April 2021 -2,729,077.89 -676.18
Ltd.
Shanghai
Healthlong
Biochemical [Note] April 2021 131,743,692.10 -14,434,836.72
Technology Co.,
Ltd.
[Note] In April 2021, the Company increased the capital contribution to Zhuhai Healthlong
Biotechnology Co., Ltd. in the form of 52% of equity held by it in Shanghai Healthlong Company. After
the increase in capital contribution completes, Shanghai Healthlong Company becomes a wholly-owned
subsidiary of Zhuhai Healthlong Biotechnology Co., Ltd., and the Company holds 10.00% of equity in
Zhuhai Healthlong Biotechnology Co., Ltd. and has the right to appoint one director to Zhuhai
Healthlong Biotechnology Co., Ltd..
6. Others
□Applicable √N/A
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IX. Interests in Other Entities
1. Interests in subsidiaries
(1). Composition of enterprise group
√Applicable □N/A
Name of Main Shareholding (%) Method of
Place of Business
subsidiary business acquisition
registration nature Direct Indirect
place
Hangzhou
Proya Wholesale
Hangzhou Hangzhou 100.00 Establishment
Trading Co., and retail
Ltd.
Zhejiang
Meili Valley Wholesale
Hangzhou Hangzhou 100.00 Establishment
E-commerce and retail
Co., Ltd.
Huzhou
Chuangdai Wholesale
Huzhou Huzhou 100.00 Establishment
E-commerce and retail
Co., Ltd.
HAPSODE
(Hangzhou) Wholesale
Hangzhou Hangzhou 100.00 Establishment
Cosmetics and retail
Co., Ltd.
Huzhou
Youzilai Wholesale
Huzhou Huzhou 100.00 Establishment
Trading Co., and retail
Ltd.
Hongkong
Xinghuo Wholesale
Hong Kong Hong Kong 100.00 Establishment
Industry and retail
Limited
Ningbo Ningbo Ningbo Wholesale
TIMAGE and retail
61.36 Establishment
Cosmetics
Co., Ltd.
Descriptions of the difference between the shareholding ratio and the proportion of voting rights in a
subsidiary:
None
Basis for holding half or less of the voting rights but still controlling the investee, and holding majority
of the voting right but having no control over the investee:
None
Basis for control over significant structured entities included in consolidation scope:
None
Basis for determining whether the Company acts as the agent or the principal:
None
Other descriptions:
None
(2). Significant non-wholly subsidiaries
√Applicable □N/A
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Unit: Yuan Currency: RMB
Profit or loss Dividends declared
Shareholding of
attributable to for distribution to Closing balance
Name of minority
minority interests minority of minority
subsidiary shareholders
for the current shareholders for the interests
(%)
period current period
Ningbo
TIMAGE
38.64 -3,270,441.67 -11,907,069.70
Cosmetics Co.,
Ltd.
Descriptions of the difference between the shareholding ratio of minority shareholders and their
proportion of voting rights in a subsidiary:
□Applicable √N/A
Other descriptions:
□Applicable √N/A
(3). Key financial information of significant non-wholly subsidiaries
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Name of
subsidiary Current Non-current Total Current Non-current Total Current Non-current Total Current Non-current Total
assets assets assets liabilities liabilities liabilities assets assets assets liabilities liabilities liabilities
Ningbo 42,270,95 84,124.14 42,355,07 72,556,87 72,556,87 42,477,9 85,01 42,562,97 64,300,89 64,300,89
TIMAGE 0.45 4.59 2.37 2.37 67.12 0.07 7.19 9.00 9.00
Cosmetics
Co., Ltd.
Amount for the current period Amount for the prior period
Name of Cash flows Cash flows
Total Total
subsidiary from from
Revenue Net profit comprehensive Revenue Net profit comprehensive
operating operating
income income
activities activities
Ningbo 116,044,099.29 -8,463,875.97 -8,463,875.97 -2,465,779.00 12,124,535.17 -4,341,954.94 -4,341,954.94 3,280,263.73
TIMAGE
CosmetiQcs
Co., Ltd.
Other descriptions:
None
(4). Significant restrictions on the use of enterprise group assets and settlement of enterprise
group debts：
□Applicable √N/A
(5). Financial supports or other supports offered for the structured entities included in the
scope of consolidated financial statements：
□Applicable √N/A
Other descriptions:
□Applicable √N/A
2. Transactions through which the share of the owner’s equity in the subsidiary has changed and
the control on the subsidiary is still maintained
√Applicable □N/A
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(1). Descriptions of changes in the share of owner’s equity in the subsidiary
√Applicable □N/A
Name of subsidiary Shareholding ratio Shareholding ratio
Change time
prior to change after change
Shanghai Zhongwen
Electronic Commerce Co., January 2021 83.00% 100.00%
Limited
Hong Kong Zhongwen
Electronic Commerce Co., January 2021 83.00% 100.00%
Limited
(2). Impacts of transactions on minority interests and equity attributable to owners of the parent
company
√Applicable □N/A
Unit: Yuan Currency: RMB
Shanghai Zhongwen Hong Kong Zhongwen
Electronic Commerce Electronic Commerce
Co., Limited Co., Limited
Purchase cost/disposal consideration
--Cash
-- Fair value of assets other than cash
Total purchase costs/disposal considerations
Less: Shares of net assets of the subsidiaries
calculated at the acquired/disposed equity -706,570.34 -84,104.71
proportion
Difference 706,570.34 84,104.71
Including: Adjustments to capital reserve 706,570.34 84,104.71
Adjustments to surplus reserve
Adjustments to unappropriated profits
Other descriptions
□Applicable √N/A
3. Interests in joint ventures or associates
√Applicable □N/A
(1). Significant joint ventures or associates
□Applicable √N/A
(2). Key financial information of significant joint ventures
□Applicable √N/A
(3). Key financial information of significant associates
□Applicable √N/A
(4). Summary of financial information of insignificant joint ventures and associates
√Applicable □N/A
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Unit: Yuan Currency: RMB
Closing balance / Amount for the Opening balance / Amount for
current period the prior period
Joint ventures:
Total investment carrying 3,301,050.94 3,306,630.57
amount
Total of the following items calculated based on the shareholding ratio
--Net profit -5,579.63 -3,033.40
--Other comprehensive income
--Total comprehensive income -5,579.63 -3,033.40
Associates:
Total investment carrying 183,291,583.06 54,913,429.03
amount
Total of the following items calculated based on the shareholding ratio
--Net profit -2,369,527.07 -205,955.01
--Other comprehensive income
--Total comprehensive income -2,369,527.07 -205,955.01
Other descriptions
None
(5). Descriptions of significant restrictions on the ability of joint ventures or associates to
transfer funds to the Company
□Applicable √N/A
(6). Excess losses incurred by joint ventures or associates
□Applicable √N/A
(7). Unrecognized commitments related to investments in joint ventures
□Applicable √N/A
(8). Contingent liabilities related to investments in joint ventures or associates
□Applicable √N/A
4. Significant joint operations
□Applicable √N/A
5. Interests in structured entities not included in the scope of consolidated financial statements
Descriptions of structured entities not included in the scope of consolidated financial statements:
□Applicable √N/A
6. Others
□Applicable √N/A
X. Risks Related to Financial Instruments
√Applicable □N/A
As the goal of risk management, the Company intends to strike a balance between risks and returns,
minimize the negative impact of risks on the Company’s operating performance, and maximize the
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interests of shareholders and other equity investors. Based on this risk management goal, the Company’s
basic risk management strategy is to identify and analyze the its exposure to various risks, establish an
appropriate maximum tolerance to risk, implement risk management, and monitor regularly and
effectively these exposures to ensure the risks are monitored at a certain level.
The Company is exposed to various risks associated with financial instruments in its daily routines,
primarily including credit risk, liquidity risk and market risk. The management has reviewed and
approved policies to manage these risks, summarized as below.
(I) Credit Risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other
party by failing to discharge an obligation.
1. Management of credit risk
(1) Evaluation of credit risk
The Company assesses at each balance sheet date whether the credit risk of the underlying financial
instruments has increased significantly since initial recognition. In determining whether the credit risk
has increased significantly since initial recognition, the Company considers reasonable and supportable
information that is available without undue cost or effort, including quantitative and qualitative analysis
based on historical data, ranking of external credit risks and forward-looking information. The Company
compares the risk of a default occurring on a financial instrument as at the balance sheet date with the
risk of a default occurring on the financial instrument as at the date of initial recognition based on
individual financial instrument or financial instruments portfolio with similar credit risk characteristic, to
determine the change of the risk of a default occurring on a financial instrument over the expected life.
The Company considers that the credit risk of financial instruments has increased significantly
when one or more of the following quantitative and qualitative criteria are met:
1) The quantitative criterion primarily refers to a certain percentage of increase in the probability of
default over the remaining life of the financial instruments as of the balance sheet date when comparing
with that at initial recognition of the financial instruments;
2) The qualitative criteria include, inter alia, adverse material changes in business or financial
conditions that are expected to cause a significant decrease in the debtor's ability to meet its debt
obligations, and an actual or expected significant adverse change in the technological, market, economic,
or legal environment of the debtor that results in a significant decrease in the debtor’s ability to meet its
debt obligations.
(2) Definition of defaulted or credit-impaired assets
A financial asset is defined as defaulted when the financial instrument meets one or more
conditions stated as below, and the criteria of defining defaulted asset is consistent with the that of
defining credit-impaired asset:
1) significant financial difficulty of the debtor;
2) a breach of contract terms with binding force by the debtor;
3) it is becoming probable that the borrower will enter bankruptcy or other financial reorganization;
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2021 Semi-annual Report
or/and
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial
difficulty, has granted to the debtor a concession that the creditor would not otherwise consider.
2. Measurement of expected credit loss (“ECL”)
Key parameters to measure ECL include the probability of default, loss given default and the
exposure at default. The Company established models of the probability of default, loss given default
and the exposure at default on the basis of qualitative analysis on historical statistical data (such as
counterparty ranking, guarantee methods, collateral category, and repayment way) and forward-looking
information.
3. Details of reconciliation of the opening balance and the closing balance of provision for
impairment of financial instruments can refer to the Notes VII 5, VII. 6 and VII. 8 of Section X
Financial Report in this report.
4. Credit risk exposure and credit risk concentration
The Company's credit risk is primarily from currency funds and receivables. In order to control the
risks associated with aforementioned items, the Company has taken the following measures.
(1) Currency funds
The credit risk of the Company is limited because the Company has deposited bank deposits and
other monetary funds in banks with high credit ratings.
(2) Receivables
The Company continually evaluates the creditworthiness of its customers with deals on credit, and
selects to deal with approved and creditworthy customers subject to the results of the credit assessment
with monitoring the balance of its receivables, so as to ensure that the Company is not exposed to
significant risk of bad debt.
No collaterals are required since the Company only deals with third parties that are approved and
creditworthy. The concentrated credit risks are managed by customers. As of June 30, 2021, the
Company was exposed to certain concentration of credit risks, as the Company’s accounts receivable
from top 5 customers have accounted for 55.61% of the total balance of accounts receivable (December
31, 2020: 49.92%). The Company held no collaterals or other credit ranking measures for the balance of
accounts receivable.
The maximum exposure to the Company is the carrying amount of each financial asset in the
balance sheet.
(II) Liquidity Risk
Liquidity risk refer to the risk that the Company is in shortage of funds in performing obligations
that are settled by delivering cash or another financial asset. Liquidity risk may derive from the inability
to sell financial assets at fair value as soon as possible, or from the other party’s inability to repay its
contractual debt, or from debt that matures early or from the inability to generate expected cash flows.
In order to control this risk, the Company balances the continuity and flexibility of financing by
using various financing measures such as notes settlement and bank loans comprehensively and adopting
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2021 Semi-annual Report
both long-term and short-term financing methods to optimize the financing structure. The Company has
received credit facilities from a number of commercial banks to satisfy its working capital requirements
and capital expenditures.
Financial liabilities classified by remaining duration
Closing balance
Item 1-3 Over 3
Carrying amount Undiscounted Within 1 year
contract amount years years
Bank
200,000,000.00 206,774,520.55 206,774,520.55
borrowings
Notes
63,672,739.08 63,672,739.08 63,672,739.08
payable
Accounts
347,238,059.11 347,238,059.11 347,238,059.11
payable
Other
73,609,323.68 73,609,323.68 73,609,323.68
payables
Sub-total 684,520,121.87 691,294,642.42 691,294,642.42
(Continued)
Closing amount for the prior year
Item Over 3
Carrying amount Undiscounted Within 1 year 1-3 years
contract amount years
Bank
299,280,435.09 306,965,009.72 306,965,009.72
borrowings
Notes payable 64,580,000.00 64,580,000.00 64,580,000.00
Accounts
515,832,031.27 515,832,031.27 515,832,031.27
payable
Other
75,546,323.32 75,546,323.32 75,546,323.32
payables
Sub-total 955,238,789.68 962,923,364.31 962,923,364.31
(III) Market Risk
Market risk refers to the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk mainly includes interest rate risk and currency
risk.
1. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. Interest-bearing financial instruments with fixed
interest rates expose the Company to fair value interest rate risk, and interest-bearing financial
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instruments with floating interest rates expose the company to cash flow interest rate risk. The Company
determines the ratio of fixed-rate and floating-rate financial instruments based on the market
environment, and maintains an appropriate portfolio of financial instruments through regular review and
monitoring.
2. Foreign currency risks
Currency risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or
future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The
Company's exposure to the currency risk is primarily associated with the Company’s monetary assets
and liabilities dominated in foreign currencies. Since the Company mainly operates in Mainland China
with its principal activities denominated in RMB, the Company's exposure to the currency risk due to
changes in market is not material.
The closing balance of the Company’s monetary assets and liabilities dominated in foreign
currencies is seen in Note VII 82 of Section X Financial Report in this report.
XI. Disclosure of Fair Value
1. Closing balance of the fair value of assets and liabilities measured at fair value
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance of fair value
Item
Level 1 Level 2 Level 3 Total
I. Continuous fair value
measurement
(I) Held-for-trading
financial assets
1. Financial assets at fair
value through profit or loss
(1) Investments in debt
instruments
(2) Investments in equity
instruments
(3) Derivative financial
assets
2. Financial assets, at fair
value through profit or loss
(1) Investments in debt
instruments
(2) Investments in equity
instruments
(II) Other debt investments
(III) Other investments in 20,580,000.00 20,580,000.00
equity instruments
(IV) Investment properties
1. A land use right that is
used to be leased out.
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2021 Semi-annual Report
2. A building that is leased
out.
3. A land use right held for
transfer upon capital
appreciation.
(V) Biological assets
1. Consumable biological
assets
2. Bearer biological assets
Receivable financing 5,263,729.60 5,263,729.60
Total assets continuously 25,843,729.60 25,843,729.60
measured at fair value
(VI) Held-for-trading
financial liabilities
1. Financial liabilities at
fair value through profit or
loss
Including: Issued tradable
bonds
Derivative financial
liabilities
Others
2. Financial liabilities
designated as at fair value
through profit or loss
Total liabilities
continuously measured at
fair value
II. Non-continuous fair
value measurement
(I) Held-for-sale assets
Total assets not
continuously measured at
fair value
Total liabilities not
continuously measured at
fair value
2. Basis for determining the market price of continuous and non-continuous level 1 fair value
measurement items
□Applicable √N/A
3. Valuation techniques and qualitative and quantitative information of key parameters adopted
for continuous and non-continuous level 2 fair value measurement items
□Applicable √N/A
4. Valuation techniques and qualitative and quantitative information of key parameters adopted
for continuous and non-continuous level 3 fair value measurement items
√Applicable □N/A
1. For the held notes receivable, the par value is used to determine their fair value.
2. The fair value of other equity instrument investments of the Company is determined according
to the actual capital contribution.
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5. Reconciliation between opening and closing carrying amounts and sensitivity analysis of
unobservable parameters for continuous level 3 fair value measurement items
□Applicable √N/A
6. In case of transfers among levels for the current period, explain the transfer reasons and
policies for determining transfer time point for continuous fair value measurement items
□Applicable √N/A
7. Changes in valuation techniques for the current period and reasons for changes
□Applicable √N/A
8. Fair value of financial assets and liabilities not measured at fair value
□Applicable √N/A
9. Others
□Applicable √N/A
XII. Related Party and Related Party Transactions
1. Parent company of the Company
□Applicable √N/A
2. Subsidiaries of the Company
For details of the subsidiaries of the Company, please see the notes.
√Applicable □N/A
The details of the subsidiaries of the Company are set out in Note IX of Section X in this report.
3. Joint ventures and associates of the Company
For details of the significant joint ventures or associates of the Company, please see the notes.
□Applicable √N/A
The details of other joint ventures or associates having related party transactions and balances with the
Company in the current period or prior periods are as follows:
□Applicable √N/A
4. Other related parties of the Company
√Applicable □N/A
Name of other related parties Relationship between other related parties and
the Company
Zhejiang Leqing Rural Commercial Bank Co., Ltd. Others
Huzhou Beauty Town Technology Incubation Park Others
Co., Ltd.
Xiongke Culture Media (Hangzhou) Co., Ltd. Others
Beijing Mitangpai Cosmetics Co., Ltd. [Note 1] Others
Metis Information Technology (Guangzhou) Co., Ltd. Others
Cosmetics Industry (Huzhou) Investment Others
Development Co., Ltd.
Zhuhai Healthlong Biotechnology Co., Ltd. Others
Shaoqing City Keqiao District Qingteng Culture Others
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2021 Semi-annual Report
Investment Co., Ltd.
Parisezhan HK Limited Others
EURL PHARMATICA Others
SARL ORTUS Others
S.A.S AREDIS Others
YOKIPLUS Co., Ltd. Others
Shanghai YOKIPLUS Brand Management Co., Ltd. Others
Pan Xiang Others
Other descriptions
[Note 1] Beijing Mitangpai Cosmetics Co., Ltd. was revoked in August 2020.
[Note 2] Zhuhai Healthlong Biotechnology Co., Ltd. was a minority shareholder of Shanghai Healthloog
Company. In April 2021, the Company increased the capital contribution to Zhuhai Healthlong
Biotechnology Co., Ltd. in the form of 52% of equity held by it in Shanghai Healthlong Company. After
the increase in capital contribution completes, Shanghai Healthlong Company becomes a wholly-owned
subsidiary of Zhuhai Healthlong Biotechnology Co., Ltd., and the Company holds 10.00% of equity in
Zhuhai Healthlong Biotechnology Co., Ltd. and has the right to appoint one director to Zhuhai
Healthlong Biotechnology Co., Ltd..
5. Related party transactions
(1). Sales and purchase of goods, rendering and receipt of services
Table of purchase of goods/ receipt of services
√Applicable □N/A
Unit: RMB0’000 Currency: RMB
Details of related party Amount for the current Amount for the prior
Related parties
transactions period period
Zhuhai Healthlong Purchase of goods
2,456.11
Biotechnology Co., Ltd.
EURL PHARMATICA Purchase of goods 2,991.63
SARL ORTUS Purchase of goods 959.72
S.A.S AREDIS Purchase of goods 117.16
Metis Information Advertising and
Technology (Guangzhou) communication service 117.50
Co., Ltd. fee
Xiongke Culture Media Video production
13.93
(Hangzhou) Co., Ltd. service
Table of sales of goods/ rendering of services
√Applicable □N/A
Unit: RMB0’000 Currency: RMB
Details of related party Amount for the current Amount for the prior
Related parties
transactions period period
Shanghai YOKIPLUS
Brand Management Co., Sales of goods 3,485.85 2,425.55
Ltd.
YOKIPLUS Co., Ltd. Sales of goods 91.16 239.92
Shaoqing City Keqiao
District Qingteng Culture Sales of goods 2.62
Investment Co., Ltd.
Zhejiang Leqing Rural
Sales of goods 1.41
Commercial Bank Co., Ltd.
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2021 Semi-annual Report
Cosmetics Industry
(Huzhou) Investment Sales of goods 0.30
Development Co., Ltd.
Parisezhan HK Limited Sales of goods 106.78
Beijing Mitangpai
Sales of goods 224.95
Cosmetics Co., Ltd.
Descriptions of related party transactions with respect to the sales and purchase of goods, rendering and
receipt of services
□Applicable √N/A
(2). Related entrusted management/contracting and entrusting management/outsourcing
Table of the entrusted management/contracting of the Company:
□Applicable √N/A
Descriptions of related trusteeship/outsourcing
□Applicable √N/A
Table of the entrusting management/outsourcing of the Company:
□Applicable √N/A
Descriptions of related management/outsourcing
□Applicable √N/A
(3). Related leases
The Company as the lessor:
□Applicable √N/A
The Company as the lessee:
√Applicable □N/A
Unit: RMB0’000 Currency: RMB
Category of leased Lease fees recognized in the Lease fees recognized in the
Name of lessors
assets current period prior period
Huzhou Beauty Workshop
Town Technology
48.40 50.64
Incubation Park
Co., Ltd.
Shanghai Office premises
YOKIPLUS Brand
23.49
Management Co.,
Ltd.
Descriptions of related leases
□Applicable √N/A
(4). Related guarantees
The Company as the guarantor
□Applicable √N/A
The Company as the guaranteed party
□Applicable √N/A
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Descriptions of guarantees with related parties
□Applicable √N/A
(5). Lending funds of related parties
□Applicable √N/A
(6). Asset transfer and debt restructuring between related parties
□Applicable √N/A
(7). Compensation for key management
√Applicable □N/A
Unit: RMB0’000 Currency: RMB
Amount for the prior
Item Amount for the current period
period
Compensation for key management
491.60
493.10
(8). Other related party transactions
√Applicable □N/A
The Company and its subsidiaries open bank accounts in Zhejiang Leqing Rural Commercial Bank Co.,
Ltd. and collect deposit interest according to market interest rates.
(1) Deposit with the related-party banks
Unit: RMB0’000
Descriptions of
Closing Opening
Related party related-party
balance balance
transaction
Zhejiang Leqing Rural Commercial Bank Co., Ltd. Bank deposit 14,929.61 14,390.77
(2) Collection of interest from related parties
Unit: RMB0’000
Descriptions of
Related party related-party Current amount Prior amount
transaction
Zhejiang Leqing Rural Commercial Bank Co., Ltd. Interest income 317.84 286.55
6. Amounts due from / to related parties
(1). Amounts due from related parties
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Related parties Gross carrying Provision for Gross carrying Provision for bad
amount bad debts amount debts
Account
receivable
Shanghai
YOKIPLUS
Brand 1,183,869.84 59,193.49
Management Co.,
Ltd.
Sub-total 1,183,869.84 59,193.49
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2021 Semi-annual Report
Prepayments
Zhuhai
Healthlong
21,432,452.28
Biotechnology
Co., Ltd.
Huzhou Beauty
Town
Technology 43,000.00 44,000.00
Incubation Park
Co., Ltd.
Shanghai
YOKIPLUS
Brand 39,150.95
Management Co.,
Ltd.
Sub-total 43,000.00 21,515,603.23
Other
receivables
EURL
PHARMATICA 12,001,399.00 600,069.95 24,167,639.75 1,208,381.99
[Note]
Huzhou Beauty
Town
Technology 133,568.20 61,820.46 132,568.20 61,770.46
Incubation Park
Co., Ltd.
Pan Xiang 75,000.00 22,500.00 75,000.00 22,500.00
Sub-total 12,209,967.20 684,390.41 24,375,207.95 1,292,652.45
[Note] The amounts in the line of EURL PHARMATICA are combined amounts of EURL
PHARMATICA, PARISEZHAN HK LIMITED, SARL ORTUS and S.A.S AREDIS, which are
controlled by the same person.
(2). Amount due to related parties
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Related parties Gross carrying amount Gross carrying amount at the
at the end of the period beginning of the period
Accounts payable
Metis Information 99,718.88
Technology
(Guangzhou) Co., Ltd.
S.A.S AREDIS 263,358.19
Sub-total 363,077.07
Contract liabilities
Shanghai YOKIPLUS 34,200.00
Brand Management
Co., Ltd.
Sub-total 34,200.00
7. Commitments of related parties
□Applicable √N/A
8. Others
□Applicable √N/A
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2021 Semi-annual Report
XIII. Share-based Payment
1. Overview of shared-based payment
√Applicable □N/A
Unit: Share Currency: RMB
Total amount of each type of equity instruments N/A
granted by the Company in the current period
Total amount of each type of equity instruments of 293,265.00
the Company exercised in the current period
Total amount of each type of equity instruments of
the Company lapsed in the current period
Range of exercise prices and remaining contractual N/A
life of share options outstanding of the Company at
the closing of the period
Range of exercise prices and remaining contractual The grant price of the restricted shares granted is
life of other equity instruments outstanding of the RMB 17.95 per share, and the term is 60 months
Company at the closing of the period. from the grant date.
Other descriptions
On July 12, 2018, in accordance with the Proposal on the Restricted Share Incentive Plan of the
Company in 2018 (Draft) and Its Summary reviewed and approved by the first extraordinary general
meeting of the Company in 2018, and pursuant to the incentive plan, the Company proposed to grant no
more than 1,467,200 shares of restricted shares to the grantees, of which 1,201,100 shares were granted
for the first time, and 266,100 shares were reserved. The restricted shares were initially granted on July
12, 2018 to 32 persons including senior managers, middle managers and core backbones of the
Company (excluding independent directors, supervisors and shareholders who individually or jointly
hold more than 5% of the Company’s shares, or the de facto controllers and their respective spouse,
parents, children) at the price of RMB 17.95/share. The source of the underlying shares involved in this
incentive plan is A-share common stock directionally by the Company to grantees. The effective period
of this incentive plan is from the date when the registration of grant of the restricted shares is completed
to the date when all the restricted shares granted to the grantees are vested or repurchased and cancelled,
but subject to 60 months at the longest. The restricted shares granted will be vested in three installments
within the next 36 months after the expiration of 12 months from the initially granted restricted shares at
30%, 30% and 40%. Performance vesting conditions for the first release period: based on the operating
income and net profit in 2017, the growth rate of operating income and net profit in 2018 shall not be
less than 30.8% and 30.1%, respectively; performance vesting conditions for the second release period:
based on the operating income and net profit in 2017, the growth rate of operating income and net profit
in 2019 shall not be less than 74.24% and 71.21%, respectively; performance vesting conditions for the
third release period: based on the operating income and net profit in 2017, the growth rate of operating
income and net profit in 2020 shall not be less than 132.61% and 131.99%, respectively.
On July 12, 2018, the 22nd meeting of the first board of directors of the Company reviewed and
approved the Proposal on the Initial Grant of Restricted Shares to Grantees, determining the date July
12, 2018 as the initial grant date. In the actual subscription process, some grantees voluntarily gave up
the subscription, and the Company actually granted 1,096,200 restricted shares.
On December 12, 2018, the 3rd meeting of the second board of directors of the Company reviewed
and approved the Proposal on the Grant of Reserved Restricted Shares to Grantees, determining the date
December 12, 2018 as the grant date of reserved restricted shares. In the actual subscription process, all
the grantees completed the subscription, and the Company actually granted 266,100 restricted shares.
On December 30, 2019, the 10th meeting of the second board of directors of the Company
reviewed and approved the Proposal on the Satisfaction of Vesting Conditions for the First Release
Period of the Initially Granted Restricted Shares and the Granted Reserved Portion under the 2018
Restricted Share Incentive Plan, 369,500 restricted shares held by the grantees who meet the vesting
conditions for the first release period were vested and circulated on January 6, 2020.
In accordance with the Proposal on Repurchase and Cancellation of Restricted Shares That Have
Been Granted but Have Not Vested by Unqualified Grantees reviewed and approved by the 4th meeting
of the second board of directors in 2019 and the first extraordinary general meeting of shareholders in
2019 and the Proposal on Repurchase and Cancellation of Some Restricted Shares under Share
169 / 185
2021 Semi-annual Report
Incentive Plan reviewed and approved by the 8th meeting of the second board of directors in 2019, the
Company repurchased and cancelled 92,740 restricted shares and paid RMB 1,657,699.80 as repurchase
payments because some grantees left the office or failed to meet all vesting conditions of restricted
shares upon appraisal of performance for that period.
On July 6, 2020, in accordance with the Proposal on Adjusting the 2020 Performance Appraisal
Index at the Company Level in the 2018 Restricted Share Incentive Plan and Related Documents
reviewed and approved by the second extraordinary general meeting of shareholders of the Company in
2020, the Company revised the performance appraisal appraisal index for the third release period in
original incentive plan as the following: based on the operating income in 2017, and the growth rate of
operating income in 2020 shall not be less than 110.22% and based on net profit in 2017, the growth rate
of net profit in 2020 shall not be less than 131.99%.
On August 24, 2020, in accordance with the Proposal on Repurchase of Cancelled Restricted
Shares under Share Incentive Plan reviewed and approved by the 15th and 16th meetings of the second
board of directors in 2020, and the 3rd extraordinary general meeting of shareholders in 2020, the
Company repurchased and cancelled 152,635 restricted shares and paid RMB 2,584,110.55 as the
repurchase payment because some grantees left the office or failed to meet all vesting conditions of
restricted shares upon appraisal of performance for that period.
The Company’s various equity instruments exercised for the current period were based on the
Proposal on the Satisfaction of Vesting Conditions for the Second Release Period of the Initially
Granted Restricted Shares and the Granted Reserved Portion under the 2018 Restricted Share Incentive
Plan reviewed and approved by the 18th meeting of the second board of directors on January 5, 2021,
and accordingly 293,265 restricted shares held by the grantees who meet the Vesting Conditions for the
second release period were vested and circulated on January 14, 2021.
2. Equity-settled share-based payment
√Applicable □N/A
Unit: Yuan Currency: RMB
Method of determining the fair value of equity Determined based on the share price on the grant
instruments on the grant date date and grant price of restricted shares
Basis for determination of number of exercisable Estimated based on performance conditions of
equity instruments the release periods
Reasons for significant differences between N/A
estimates in the current period and those in the prior
period
Accumulated amount of equity-settled share-based 34,211,501.90
payment included in the capital reserve
Total expense recognized for the current period 2,262,118.91
arising from equity-settled share-based payments.
Other descriptions
None
3. Cash-settled share-based payment
□Applicable √N/A
4. Modifications to and termination of share-based payment
□Applicable √N/A
5. Others
□Applicable √N/A
XIV. Commitments and Contingencies
1. Significant commitments
√Applicable □N/A
Significant commitments to outsiders as of the balance sheet data, and their nature and amount
170 / 185
2021 Semi-annual Report
On May 13, 2021, through being reviewed and approved by the 2020 annual general meeting of
shareholders of the Company, the Company intends to apply for publicly issuing not more than RMB
803,500,000 A-share convertible corporate bonds, and the proceeds from issuance of convertible
corporate bonds net of the issuance expenses will be used for the following projects:
Total investments Proceeds to be
Project
(RMB 0’000) invested
Huzhou production base expansion
43,752.54 33,850.00
construction project (phase I)
Longwu R&D center construction project 21,774.45 19,450.00
Information system upgrade construction
11,239.50 9,050.00
project
Replenishment of working capital 18,000.00 18,000.00
Total 94,766.49 80,350.00
2. Contingencies
(1). Significant contingencies as of the balance sheet date
□Applicable √N/A
(2). Please also make explanations thereof if the Company has no significant contingency to be
disclosed：
□Applicable √N/A
3. Others
□Applicable √N/A
XV. Events After the Balance Sheet Date
1. Significant non-adjustment events
□Applicable √N/A
2. Profit distribution
□Applicable √N/A
3. Sales returns
□Applicable √N/A
4. Descriptions of other events after the balance sheet date
□Applicable √N/A
XVI. Other significant events
1. Corrections of previous accounting errors
(1). Retrospective restatement
□Applicable √N/A
(2). Prospective application
□Applicable √N/A
2. Debt restructuring
□Applicable √N/A
171 / 185
2021 Semi-annual Report
3. Replacement of assets
(1). Exchange of non-monetary assets
□Applicable √N/A
(2). Replacement of other assets
□Applicable √N/A
4. Annuity plan
□Applicable √N/A
5. Discontinued operations
□Applicable √N/A
6. Segment information
(1). Determination basis and accounting policies of reporting segments
√Applicable □N/A
The Company does not have diversified operations or cross-regional operations, so there is no reporting
segment. The Company’s main business income and costs classified by brand are as follows:
From January to June 2021
Brand Main business income Main business costs Gross profit
Proya 1,487,120,837.44 508,232,715.85 978,888,121.59
Other brands 424,159,627.47 182,705,819.33 241,453,808.14
Sub-total 1,911,280,464.91 690,938,535.18 1,220,341,929.73
From January to June 2020
Brand Main business income Main business costs Gross profit
Proya 1,131,438,646.00 393,086,772.23 738,351,873.77
Other brands 250,696,466.85 159,861,764.58 90,834,702.27
Sub-total 1,382,135,112.85 552,948,536.81 829,186,576.04
(2). Financial information of reporting segments
□Applicable √N/A
(3). If the Company has no reporting segment or is unable to disclose total assets and liabilities
of each reporting segments, please give the reason therefor
□Applicable √N/A
(4). Other descriptions
□Applicable √N/A
7. Other significant transactions and events affecting the investors’ decisions
□Applicable √N/A
8. Others
□Applicable √N/A
172 / 185
2021 Semi-annual Report
XVII. Notes to Key Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1). Disclosure by aging
√Applicable □N/A
Unit: Yuan Currency: RMB
Aging Gross carrying amount at the end of the period
Within 1 year
Including: Subdivision within 1 year
Sub-total within 1 year 473,628,112.49
1-2 years 44,732,356.05
2-3 years 12,435,009.76
Over 3 years 346,836.70
3-4 years
4-5 years
Above 5 years
Total
531,142,315.00
(2). Disclosure by categories based on methods of determination of provision for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Category Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts
Carrying Carrying
Proportion Proportion amount Proportion Proportion amount
Amount Amount Amount Amount
(%) (%) (%) (%)
Provision for
bad debts
made
individually
Including:
Provision for
bad debts
made by
portfolio:
Including:
Aging
531,142,315.00 100.00 43,665,454.02 8.22 487,476,860.98 617,474,114.36 100.00 52,436,703.21 8.49 565,037,411.15
portfolio
Total 531,142,315.00 / 43,665,454.02 / 487,476,860.98 617,474,114.36 / 52,436,703.21 /
565,037,411.15
Provision for bad debts made individually:
□Applicable √N/A
Provision for bad debts made by portfolio:
√Applicable □N/A
Items of portfolio provision: aging portfolio
Unit: Yuan Currency: RMB
Closing balance
Name
Accounts receivable Provision for bad debts Proportion (%)
Within 1 year 473,628,112.49 23,681,405.62 5.00
1-2 years 44,732,356.05 13,419,706.82 30.00
2-3 years 12,435,009.76 6,217,504.88 50.00
Over 3 years 346,836.70 346,836.70 100.00
Total 531,142,315.00 43,665,454.02 8.22
Standards of provision for bad debts made by portfolio and descriptions thereof:
□Applicable √N/A
173 / 185
2021 Semi-annual Report
If the provision for bad debts is made in accordance with the general model of expected credit losses,
please refer to other receivables disclosure:
□Applicable √N/A
(3). Provision for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Recovery Closing
Category Other
balance Provision or Removal/write-off balance
changes
reversal
Provision 52,436,703.21 -8,771,177.49 71.70 43,665,454.02
for bad
debts
made by
portfolio
Total 52,436,703.21 -8,771,177.49 71.70 43,665,454.02
Significant recovery or reversal of bad debt provision for the current period:
□Applicable √N/A
(4). Accounts receivable actually written off for the current period
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Write-off amount
Accounts receivable actually written off 71.70
Descriptions of significant accounts receivable that are written off:
□Applicable √N/A
Descriptions of write-off of accounts receivable:
□Applicable √N/A
(5). Top five closing balances of accounts receivable categorized by debtor
√Applicable □N/A
Unit: Yuan Currency: RMB
Proportion to
the balance ofProvision for bad
Unit Gross carrying amount
accounts debts
receivable (%)
Hangzhou Proya Trade Co., Ltd. 257,333,981.88 48.45 12,866,699.09
Huzhou Youzilai Trade Co., Ltd. 84,766,828.65 15.96 10,021,930.53
Zhejiang Meili Valley E-commerce Co.,
64,862,788.89 12.21 3,243,139.44
Ltd.
Hangzhou Proya Business Management
44,351,306.05 8.35 4,435,130.61
Co., Ltd.
Ningbo TIMAGE Cosmetics Co., Ltd. 24,017,820.47 4.52 1,200,891.02
Sub-total 475,332,725.94 89.49 31,767,790.69
174 / 185
2021 Semi-annual Report
(6). Accounts receivable derecognized due to the transfer of financial assets
□Applicable √N/A
(7). Assets and liabilities generated by the transfer of accounts receivable and continuing
involvement therein
□Applicable √N/A
Other descriptions:
□Applicable √N/A
2. Other receivables
Line items
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 233,121,481.53 236,585,409.48
Total 233,121,481.53 236,585,409.48
Other descriptions:
□Applicable √N/A
Interest receivable
(1). Classification of interest receivable
□Applicable √N/A
(2). Significant overdue interest
□Applicable √N/A
(3). Provision for bad debts
□Applicable √N/A
Other descriptions:
□Applicable √N/A
Dividends receivable
(1). Dividends receivable
□Applicable √N/A
(2). Significant dividends receivable aged more than 1 year
□Applicable √N/A
(3). Provision for bad debts
□Applicable √N/A
Other descriptions:
175 / 185
2021 Semi-annual Report
□Applicable √N/A
Other receivables
(1). Disclosure by aging
√Applicable □N/A
Unit: Yuan Currency: RMB
Gross carrying amount at the end of the
Aging
period
Within 1 year
Including: Subdivisions within 1 year
Sub-total within 1 year 100,446,944.93
1-2 years 183,038,555.89
2-3 years 35,777,727.67
Over 3 years 123,559,056.72
3-4 years
4-5 years
Above 5 years
Total 442,822,285.21
(2). Classification of other receivables by nature
√Applicable □N/A
Unit: Yuan Currency: RMB
Gross carrying amount at the Gross carrying amount at the
Nature
end of the period beginning of the period
Borrowings 423,287,910.34 402,005,709.08
Security deposit 17,784,706.72 5,100,314.72
Revolving funds 591,388.00 932,910.70
Others 1,158,280.15 4,924.76
Total 442,822,285.21 408,043,859.26
(3). Provision for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
Stage I Stage II Stage III
Provision for bad Lifetime ECL Total
Future Lifetime ECL (with
debts (without credit
12-month ECL credit impairment)
impairment)
Balance as of 8,005,556.84 2,792,224.42 160,660,668.52 171,458,449.78
January 1, 2021
In the current
period, balance as
at January 1, 2021
-- transferred to -7,875,997.27 7,875,997.27
Stage II
--transferred to -13,879.80 13,879.80
Stage III
-- transferred back
to Stage II
-- transferred back
to Stage I
Current provision 1,585,733.49 36,601,641.74 54,978.67 38,242,353.90
Current reversal
176 / 185
2021 Semi-annual Report
Current removal
Current write-off
Other changes
Balance as of June 1,715,293.06 47,255,983.63 160,729,526.99 209,700,803.68
30, 2021
Descriptions of the significant changes in the gross carrying amount of other receivables for which the
changes in loss allowance occur for the current period:
□Applicable √N/A
Provision for bad debts in the current period and the basis for assessing whether the credit risk of
financial instruments has increased significantly:
□Applicable √N/A
(4). Provision for bad debts
√Applicable □N/A
Unit: Yuan Currency: RMB
Current changes
Opening Recovery Closing
Category Other
balance Provision or Removal/write-off balance
changes
reversal
Provisions 160,573,168.52 160,573,168.52
for bad
debts made
individually
Provisions 10,885,281.26 38,242,353.90 49,127,635.16
for bad
debts by
portfolio
Total 171,458,449.78 38,242,353.90 209,700,803.68
Significant recovery or reversal of provision for bad debts for the current period:
□Applicable √N/A
(5). Other receivables actually written off for the current period
□Applicable √N/A
Descriptions of significant other receivables that are written off:
□Applicable √N/A
(6). Top five closing balances of other receivables categorized by debtors
√Applicable □N/A
Unit: Yuan Currency: RMB
Proportion to total
Closing balance
Closing closing balance of
Entity Nature Aging of provision for
balance other receivables
bad debts
(%)
Hapsode Borrowings 249,730,591.44 [Note 1] 56.40 159,856,503.49
(Hangzhou)
Cosmetics Co.,
Ltd.
177 / 185
2021 Semi-annual Report
Hongkong Borrowings 142,545,790.44 [Note 2] 32.19 41,432,595.43
Xinghuo
Industry
Limited
Ningbo Borrowings 16,304,983.36 [Note 3] 3.68 4,661,849.17
TIMAGE
Cosmetics Co.,
Ltd.
People’s Security 13,493,392.00 Within 1 3.05 674,669.60
Government of deposit year
Taixi Town,
Wuxing
District,
Huzhou City
Ningbo Keshi Borrowings 5,170,833.38 Within 1 1.17 258,541.67
Trade Co., Ltd. year
Total / 427,245,590.62 / 96.49 206,884,159.36
[Note 1] Within 1 year: RMB 66,096,979.69，1-2 years: RMB 24,476,318.83, 2-3 years: RMB
35,731,461.67, and over 3 years: RMB 123,425,831.25.
[Note 2] Within 1 year: RMB 5,324,566.81, and 1-2 years: RMB 137,221,223.63.
[Note 3] Within 1 year: RMB RMB 918,583.36 and 1-2 years: RMB 15,386,400.
(7). Receivables involving government grants
□Applicable √N/A
(8). Other receivables derecognized due to the transfer of financial assets
□Applicable √N/A
(9). Assets and liabilities generated by the transfer of other receivables and continuing
involvement therein
□Applicable √N/A
Other descriptions:
□Applicable √N/A
3. Long-term equity investments
√Applicable □N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Gross carrying Provision for Carrying Gross carrying Provision for Carrying
amount impairment amount amount impairment amount
Investment 230,062,149.4 42,500,000.0 187,562,149.4 337,957,327.2 42,500,000.0 295,457,327.2
s in 1 0 1 4 0 4
subsidiarie
s
Investment 191,110,955.1 191,110,955.1 51,915,628.82 51,915,628.82
s in 8 8
associates
and joint
ventures
421,173,104.5 42,500,000.0 378,673,104.5 389,872,956.0 42,500,000.0 347,372,956.0
Total
9 0 9 6 0 6
178 / 185
2021 Semi-annual Report
(1) Investments in subsidiaries
√Applicable □N/A
Unit: Yuan Currency: RMB
Current Closing
provision balance of
Opening Current Current Closing
Investee for provision
balance increase decrease balance
impairme for
nt impairment
Hangzhou 30,875,097.6 65,593.30 30,940,690.9
Proya Trade 4 4
Co., Ltd.
HANNA 2,094,048.00 2,094,048.00
COSMETICS
CO., LTD.
Zhejiang 16,383,777.5 476,445.98 16,860,223.4
Meili Valley 1 9
E-commerce
Co., Ltd.
Leqing Laiya 1,000,000.00 1,000,000.00
Trading Co.,
Ltd.
Hapsode 42,500,000.0 42,500,000.0 42,500,000.
(Hangzhou) 0 0 00
Cosmetics
Co., Ltd.
Mijing Siyu 18,000,000.0 18,000,000.0
(Hangzhou) 0 0
Cosmetics
Co., Ltd.
Huzhou 5,568,795.63 21,727.80 5,590,523.43
Youzilai
Trade Co.,
LTd.
Huzhou 3,500,000.00 3,500,000.00
Niuke
Technology
Co., Ltd.
Hangzhou 5,000,000.00 5,000,000.00
Proya
Business
Management
Co., Ltd.
Huzhou 20,308,163.0 20,308,163.0
Y.N.M. 0 0
Cosmetics
Co., Ltd.
Shanghai 5,400,000.00 5,400,000.00
Zhongwen
Electronic
Commerce
Co., Ltd.
Y.N.M. 5,046,455.61 5,046,455.61
Cosmetics
Co., Ltd.
Hongkong 24,736,491.0 24,736,491.0
179 / 185
2021 Semi-annual Report
Keshi 0 0
Trading
Limited
Hongkong 10,185,924.0 10,185,924.0
Xinghuo 0 0
Industry
Limited
Ningbo 15,902,200.0 15,902,200.0
TIMAGE 0 0
Cosmetics
Co., Ltd.
Ningbo Keshi 520,000.00 520,000.00
Trading Co.,
Ltd.
Zhejiang 10,000,000.0 10,000,000.0
Biyouti 0 0
Cosmetics
Co., Ltd.
Ningbo Proya 4,186,374.85 991,055.09 5,177,429.94
Enterprise
Consulting
Management
Co., Ltd.
Hangzhou 1,000,000.00 1,000,000.00
Yizhuo
Culture
Media Co.,
Ltd.
Hangzhou 2,000,000.00 2,000,000.00
Oumisi Trade
Co., Ltd.
Guangzhou 1,000,000.00 1,000,000.00
Qianxi
Network
Technology
Co., Ltd.
Zhejiang 550,000.00 550,000.00 1,100,000.00
Qingya
Culture and
Art
Communicati
on Co., Ltd.
Huzhou 1,200,000.00 1,200,000.00
Poyun
E-commerce
Co., Ltd.
Shanghai 110,500,000. 110,500,000.
Healthlong 00 00
Biochemical
Technology
Co., Ltd.
Hangzhou 500,000.00 500,000.00
Weiluoke
Cosmetics
Co., Ltd.
BOYA (Hong
180 / 185
2021 Semi-annual Report
Kong)
Investment
Management
Co., Limited
Xuzhou 500,000.00 500,000.00
Proya
Information
Technology
Co., Ltd.
Proya
(Hainan)
Cosmetics
Co., Ltd.
337,957,327. 2,604,822. 110,500,000. 230,062,149. 42,500,000.
Total
24 17 00 41 00
(2) Investments in associates and joint ventures
√Applicable □N/A
Unit: Yuan Currency: RMB
Other descriptions:
Current increase or decrease
Investme Adjust-
Declared Closing
Decrea -nt gain ment in
Opening Other cash Provision Closing balance of
Investor Additional -sed or loss other
balance equity dividend for Others balanc-e provision for
investment invest under compre
changes -s or impairment impairment
ment equity hensive
profits
method income
I. Joint
ventures
Huzhou 3,306,630 -5,579.6 3,301,05
Panrui .57 3 0.94
Industrial
Investment
Partnership
(LP)
Sub-total 3,306,630 -5,579.6 3,301,05
.57 3 0.94
II.
Associates
Xiongke 2,985,511 -53,464. 2,932,04
Culture .35 43 6.92
Media
(Hangzhou)
Co., Ltd.
Jiaxing 45,623,48 28,206,800. -24,953. 73,805,3
Woyong 6.90 00 93 32.97
Investment
Partnership
(LP)
Zhuhai 110,500,00 -2,349,2 108,150,
Healthlong 0.00 63.38 736.62
Biotechnolo
-gy Co.,
Ltd.
Beijing 3,000,000.0 -78,212. 2,921,78
Xiushi 0 27 7.73
Culture
Developme-
nt Co., Ltd.
Sub-total 48,608,99 141,706,80 -2,505,8 187,809,
8.25 0.00 94.01 904.24
51,915,62 141,706,80 -2,511,4 191,110,
Total
8.82 0.00 73.64 955.18
□Applicable √N/A
181 / 185
2021 Semi-annual Report
4. Revenue and cost of revenue
(1). Descriptions of revenue and cost of revenue
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount for the current period Amount for the prior period
Item
Revenue Cost Revenue Cost
Main operations 879,711,296.91 450,100,842.12 776,212,301.93 358,574,648.35
Other operations 17,039,716.68 6,487,404.50 16,841,498.35 6,231,905.61
Total 896,751,013.59 456,588,246.62 793,053,800.28 364,806,553.96
(2). Descriptions of revenue generated from contacts
□Applicable √N/A
(3). Descriptions of performance obligations
□Applicable √N/A
(4). Descriptions of allocation to remaining performance obligations
□Applicable √N/A
Other descriptions:
None
5. Investment income
√Applicable □N/A
Unit: Yuan Currency: RMB
Amount for the current
Item Amount for the prior period
period
Long-term equity investments accounted
for using the cost method
Income from long-term equity -2,511,473.64 -270,798.84
investment accounted for using the
equity method
Income from disposal of long-term
equity investments
Investment income from
held-for-trading financial assets during
the holding period
Dividend income from other equity
investment instruments during the
holding period
Interest income from debt investment
during the holding period
Interest income from other debt
investments during the holding period
Investment income from disposal of
held-for-trading financial assets
Investment income from disposal of
other investments in equity instruments
Investment income from disposal of
debt investments
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2021 Semi-annual Report
Investment income from disposal of
other debt investments
Income from wealth management 2,266,301.37
products
Total -2,511,473.64 1,995,502.53
Other descriptions:
None
6. Others
□Applicable √N/A
XVIII. Supplementary Information
1. Breakdown of non-recurring profit or loss for the current period
√Applicable □N/A
Unit: Yuan Currency: RMB
Item Amount Note
Gains or losses from disposal of non-current -1,416.28
assets
Unauthorized examination and approval, or
lack of official approval documents, or tax
revenue return and abatement
Government grants recognized in profit or 9,370,319.81
loss for the current period (excluding
government grants that are closely related to
the Company’s business operations and
gained at a fixed amount or quantity
according to national uniform standards)
Capital occupation fees charged to the
non-financial enterprises and included in
profit or loss for the current period
Gains when the investment cost of acquiring
a subsidiary, an associate and a joint venture
is less than the fair value of the identifiable
net assets of the investee
Gains or losses from exchange of
non-monetary assets
Gains or losses from entrusting others with
investment or asset management
Asset impairment provision made resulting
from force majeure such as natural disasters
Gains or losses from debt restructuring
Enterprise restructuring fees, such as staffing
expenses and integration fees
Gains or losses that exceeds the fair value in
transaction with unfair price
Current net gains or losses of subsidiaries
established by business combination
involving enterprises under common control
from the beginning of the period to the
combination date
Gains or losses on contingencies that have no
relation with the normal operation of the
Company
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2021 Semi-annual Report
Gains or losses from change in fair value by -3,545.22
held-for trading financial assets and
liabilities, derivative financial assets,
held-for-trading financial liabilities and
derivative financial liabilities, and
investment income from disposal of
held-for-trading financial assets, derivative
financial assets, held-for-trading financial
liabilities, derivative financial liabilities and
other debt investments, excluding the
effective hedging businesses related with
normal operations of the Company
Reversal of impairment provision of
accounts receivable and contract assets that
have undergone impairment test alone
Gains or losses from outward entrusted
loaning
Gains or losses from changes in the fair
values of investment properties that are
subsequently measured using the fair value
model
Impact of a one-time adjustment on current
profit and loss according to the requirements
of tax and accounting laws and regulations
Custody fees of entrusted operation
Other non-operating income and expenses
521,323.29
besides the above items
Other items that conform to the definition of
non-recurring profit or loss
Effect of income tax -2,222,932.24
Effect of minority equity -1,842,828.78
Total 5,820,920.58
Provide explanations for classifying non-recurring profit and loss items defined in the Explanatory
Announcement No. 1 for Public Company Information Disclosures – Non-recurring Profits and Losses,
and for classifying non-recurring profit and loss items listed in the Explanatory Announcement No. 1 for
Public Company Information Disclosures – Non-recurring Profits and Losses as recurring profit and
loss item.
□Applicable √N/A
2. Return on net assets and earnings per share
√Applicable □N/A
Weighted average Earnings per share
Profit for the reporting period return on equity
(%) Basic EPS Diluted EPS
Net loss attributable to the 9.10 1.13 1.12
Company’s ordinary
shareholders
Net profit attributable to the 8.86 1.10 1.10
parent company’s shareholders,
excluding non-recurring profit
or loss
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2021 Semi-annual Report
3. Differences arising from accounting standard of the PRC and the International Accounting
Standards
□Applicable √N/A
4. Others
□Applicable √N/A
Board Chairman：HOU Juncheng
Date of Submission Approved by the Board：August 24, 2021
Revised information
□Applicable √N/A
185 / 185
