The Third Quarter Report in 2021
Stock Code: 603605 Short Name: PROYA
Proya Cosmetics Co., Ltd.
The Third Quarter Report in 2021
The Board of Directors and all directors of the Company warrant that the contents
herein are free from misrepresentations, misleading statements or material omissions,
and they will be jointly and severally liable for the authenticity, accuracy and
completeness thereof.
Important Note:
The Board of Directors, Board of Supervisors, directors, supervisors and officers of the Company
warrant that the contents of the Quarterly Report are authentic, accurate and complete without any
misrepresentations, misleading statements or material omissions, and they will be jointly and
severally liable therefor.
The Chairman, the chief financial officer and the head of the accounting organization warrant that
the financial statements herein is authentic, accurate and complete.
Whether the third quarter financial statements have been audited.
□Yes √No
I. Main Financial Data
(I) Main Accounting Data and Financial Indicators
Unit: Yuan Currency: RMB
YOY change in
From the the period from
YOY change in
beginning of the the beginning
The Reporting the
Item year to the end of of the year to
Period Reporting
the Reporting the end of the
Period (%)
Period Reporting
Period (%)
Operating income
1,094,533,358.54 20.71 3,012,251,856.14 31.48
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The Third Quarter Report in 2021
Net profit attributable to
shareholders of the listed
138,195,475.24 30.09 364,296,789.10 27.82
company
Net profit attributable to
shareholders of the listed
company after deducting 136,116,085.45 28.64 356,396,478.73 23.63
non-recurring profit or loss
Net cash flows from
operating activities N/A N/A 490,488,496.76 137.07
Basic earnings per share
(RMB/share) 0.69 30.19 1.82 28.17
Diluted earnings per share
(RMB/share) 0.69 30.19 1.81 27.46
Weighted average return An increase of An increase of
on equity (%) 5.42 14.50
0.49 ppts yoy 1.31 ppts yoy
change at the
end of the
End of the Reporting
Item End of prior year
Reporting Period Period over the
end of
prior year (%)
Total assets
3,709,067,852.42 3,636,882,185.29 1.98
Owner’s equity
attributable to shareholders
2,614,643,878.27 2,391,535,435.94 9.33
of the listed company
Note: “The Reporting Period” shall refer to the 3-month period ended September 30, 2021, as follow.
(II) Items and Amounts of Non-recurring Profit or Loss
Unit: Yuan Currency: RMB
Amount in the period
Amount in the from the beginning of
Item Note
Reporting Period the year to the end of
the Reporting Period
Gains or losses from disposal -1,416.28
of non-current assets
(including the write-off part of
the provision for asset
impairment)
Unauthorized examination and
approval, or lack of official
approval documents, or
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The Third Quarter Report in 2021
occasional tax revenue return
and abatement
Government grants recognized 2,455,332.50 11,825,652.31 The YOY increase
in profit or loss for the current was mainly due to
period (excluding government the increase in
grants that are closely related government grants
to the Company’s business such as tax revenue
operations and gained at a returns received
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
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The Third Quarter Report in 2021
beginning of the period to the
combination date
Gains or losses on
contingencies that have no
relation with the normal
operation of the Company
Gains or losses from change in
fair value by 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
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The Third Quarter Report in 2021
operation
Other non-operating income 28,377.44 546,155.51 The YOY increase
and expenses besides the was mainly due to
above items the large amount of
non-operating
expenses such as
external donations in
the same period of
2020
Other items that conform to
the definition of non-recurring
profit or loss
Less: Effect of income tax 404,323.30 2,627,255.54
Effect of minority equity -3.15 1,842,825.63
(after tax)
Total 2,079,389.79 7,900,310.37
Descriptions on classifying non-recurring profit and loss items defined in the Explanatory
Announcement No. 1 for Public Company Information Disclosures - Non-recurring Profit and Loss as
recurring profit and loss items.
Applicable √ N/A
(III) Changes in Main Accounting Data and Financial Indicators and Main Cause
√ Applicable N/A
Note: All figures on the table are on the YOY bases.
Item Change ratio (%) Primary cause
July to September:
1. The operating income increased by 20.71% , of
which the primary operating income online
Net profit attributable to increased by 71.59%, and the overall consolidated
shareholders of the listed gross profit margin was 66.10%, an increase of 1.61
30.09
company (the Reporting ppts yoy;
Period) 2. The sales expense ratio was 41.56%, an increase
of 1.73 ppts yoy;
3. The net profit margin was 12.65%, an increase of
1.36 ppts yoy.
Basic earnings per share The specific reasons are the same as above.
(RMB/share) (the 30.19
Reporting Period)
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The Third Quarter Report in 2021
Diluted earnings per share The specific reasons are the same as above.
(RMB/share) (the 30.19
Reporting Period)
January to September:
The operating income increased by 31.48% , of
Operating income (from which the primary operating income increased by
the beginning of the year 31.29% :
31.48
to the end of the Reporting Online: an increase by 74.25%, accounting for
Period) 81.85%;
Offline: a decrease by 37.83%, accounting for
18.15%.
January to September:
An increase of RMB 284 million, or 137.07%:
1. Cash receipts from the sale of goods and the
rendering of services increased by RMB 999
million or 42.09% ; Of which, the operating income
Net cash flow from increased by 31.48% , and the accounts receivable
operating activities (from and receivable financing decreased by RMB 84
the beginning of the year 137.07 million in comparison to the beginning of the year;
to the end of the Reporting 2. Cash payments for the purchase of goods and
Period) received taxable services increased by RMB 103
million or 10.92%；
3. Other cash payments relating to operating
activities increased by RMB 502 million or 67.46%,
mainly due to the increase in image publicity and
promotion expenses.
II. Shareholders Information
(I) Total Number of Common Shareholders, Number of Preferred Shareholders with Voting Rights, and
the Shareholding of Top Ten Shareholders
Unit: share
Total number of common Total number of preferred shareholders
shareholders by the end of the 13,645 with voting rights by the end of the 0
Reporting Period (if any)
Reporting Period
Shareholding of top ten shareholders
Number Pledge, marking or
Nature of Number of Shareholding of freezing
Name of shareholder
shareholder shares held ratio (%) restricted Share
shares Number
status
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The Third Quarter Report in 2021
HOU Juncheng Domestic
71,771,631 35.69 0 None
natural person
FANG Yuyou Domestic
40,566,691 20.17 0 Pledge 9,210,000
natural person
Hong Kong Securities Clearing
Other 38,946,885 19.37 0 None
Company Limited
CAO Liangguo Domestic
3,769,938 1.87 0 None
natural person
XU Junqing Domestic
2,313,499 1.15 0 None
natural person
LI Xiaolin Domestic
2,188,310 1.09 0 None
natural person
Industrial and Commercial Bank
of China Limited - Jingshun
Changcheng Emerging Growth Other 1,700,000 0.85 0 None
Hybrid Securities Investment
Fund
Industrial and Commercial Bank
of China Limited - GF
Multi-factor Flexible Allocation Other 1,633,302 0.81 0 None
Hybrid Securities Investment
Fund
Aberdeen Standard Investment
Management (Asia) Co., Ltd. -
Other 1,499,323 0.75 0 None
Aberdeen Standard - China
A-share Equity Fund
China Construction Bank Co.,
Ltd. - E Fund Vision Growth
Other 1,018,651 0.51 0 None
Hybrid Securities Investment
Fund
Shareholding of top ten unrestricted shareholders
Number of unrestricted Type and number of shares
Name of shareholder
outstanding shares held Type Number
HOU Juncheng 71,771,631 RMB common stock 71,771,631
FANG Yuyou 40,566,691 RMB common stock 40,566,691
Hong Kong Securities Clearing
38,946,885 RMB common stock 38,946,885
Company Limited
CAO Liangguo 3,769,938 RMB common stock 3,769,938
XU Junqing 2,313,499 RMB common stock 2,313,499
LI Xiaolin 2,188,310 RMB common stock 2,188,310
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The Third Quarter Report in 2021
Industrial and Commercial Bank of
China Limited - Jingshun
1,700,000 RMB common stock 1,700,000
Changcheng Emerging Growth
Hybrid Securities Investment Fund
Industrial and Commercial Bank of
China Limited - GF Multi-factor
1,633,302 RMB common stock 1,633,302
Flexible Allocation Hybrid
Securities Investment Fund
Aberdeen Standard Investment
Management (Asia) Co., Ltd. -
1,499,323 RMB common stock 1,499,323
Aberdeen Standard - China
A-share Equity Fund
China Construction Bank Co., Ltd.
- E Fund Vision Growth Hybrid 1,018,651 RMB common stock 1,018,651
Securities Investment Fund
Description of the association
FANG Yuyou is the younger brother of HOU Juncheng’s spouse FANG Aiqin, so
relationship or concerted action of
HOU Juncheng and FANG Yuyou are related.
the above shareholders
Description of the participation of
the top 10 shareholders and the top
10 unrestricted shareholders in the None
margin trading and refinancing
business (if any)
III. Other Reminders
Other important information about the Company’s business during the Reporting Period for the
attentions of investors
Applicable √ N/A
IV. Quarterly Financial Statements
(I) Type of Audit Opinion
Applicable √ N/A
(II) Financial Statements
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The Third Quarter Report in 2021
Consolidated Balance Sheet
September 30, 2021
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB Audit Type: Unaudited
Item September 30, 2021 December 31, 2020
Current assets:
Cash and bank balances 1,389,265,414.72 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 203,098,599.96 284,878,419.58
Receivable financing 3,806,628.60 5,531,997.32
Prepayments 96,383,659.58 82,742,815.92
Premiums receivable
Amounts receivable under
reinsurance contracts
Reinsurer’s share of insurance
contract reserves
Other receivables 51,308,116.89 48,733,527.35
Including: Interest receivable
Dividends receivable
Financial assets purchased
under resale agreements
Inventories 478,074,579.65 468,641,017.75
Contract assets
Held-for-sale assets
Non-current assets due within
one year
Other current assets 40,301,160.54 35,235,811.27
Total current assets 2,262,238,159.94 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 investments 186,713,508.52 58,220,059.60
Other investments in equity 20,580,000.00 20,580,000.00
instruments
Other non-current financial
assets
Investment properties 71,099,928.39 72,237,610.10
Fixed assets 556,073,781.13 565,864,152.62
Construction in progress 116,507,623.22 47,324,523.36
Bearer biological assets
Oil and gas assets
Right of use assets
Intangible assets 418,582,847.65 314,643,323.97
Development expenditure
Goodwill 31,034,161.20
Long-term prepaid expenses 32,417,009.92 50,576,793.53
Deferred income tax assets 39,406,469.63 46,660,550.76
Other non-current Assets 5,448,524.02 87,322,780.03
Total non-current assets 1,446,829,692.48 1,294,463,955.17
Total assets 3,709,067,852.42 3,636,882,185.29
Current liabilities:
Short-term borrowings 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 40,624,882.02 64,580,000.00
Accounts payable 562,255,365.84 515,832,031.27
Receipts in advance
Contract liabilities 49,240,151.14 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 65,849,995.93 70,828,239.70
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Taxes payable 70,285,767.83 71,335,290.77
Other payables 73,347,099.26 75,546,323.32
Including: Interest payable
Dividends payable
Fees and commissions
payable
Amounts payable under
reinsurance contracts
Held-for-sale liabilities
Non-current liabilities due
within one years
Other current liabilities 2,062,864.84 1,439,262.02
Total current liabilities 1,063,666,126.86 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 7,089,282.95 10,190,099.22
Deferred income 6,936,035.83 8,495,353.33
Deferred income tax liabilities 5,781,937.93 6,874,105.45
Other non-current liabilities
Total non-current liabilities 19,807,256.71 25,559,558.00
Total liabilities 1,083,473,383.57 1,155,019,919.16
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 836,092,076.05 837,034,836.69
Less: Treasury shares 7,361,933.60 12,653,905.25
Other comprehensive income -1,002,437.91 -269,066.13
Special reserve
Surplus reserve 100,634,780.00 100,634,780.00
General risk reserve
Retained profits 1,485,164,468.73 1,265,671,865.63
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Total owners’ equity (or 2,614,643,878.27 2,391,535,435.94
shareholders’ equity) attributable
to equity holders of the parent
company
Minority interests 10,950,590.58 90,326,830.19
Total owners’ equity (or 2,625,594,468.85 2,481,862,266.13
shareholders’ equity)
Total liabilities and 3,709,067,852.42 3,636,882,185.29
owners’ equity (shareholders’
equity)
Chairman: HOU Juncheng Chief Financial Officer: WANG Li Head of the Accounting
Department: WANG Li
Consolidated Income Statement
January to September, 2021
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB Audit Type: Unaudited
First three quarters of First three quarters of
Item 2021 2020
(Jan. to Sep.) (Jan. to Sep.)
I. Total operating income 3,012,251,856.14 2,291,070,947.47
Including: Operating income 3,012,251,856.14 2,291,070,947.47
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 2,570,351,426.19 1,901,928,563.23
Including: Operating costs 1,066,572,027.42 877,111,667.51
Interest expenses
Fee and commission expenses
Surrenders
Claims and policyholder benefits
(net of amounts recoverable from reinsurers)
Charges in insurance contract
reserves (net of reinsurers’ share)
Insurance policyholder dividends
Expenses for reinsurance accepted
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Taxes and levies 26,755,664.49 21,237,762.78
Selling expenses 1,262,122,598.38 818,606,103.63
General and administrative 165,503,097.12 140,638,551.57
expenses
Research and development expenses 52,455,578.02 53,653,016.11
Financial expenses -3,057,539.24 -9,318,538.37
Including: Interest expenses 7,219,717.71 5,423,653.63
Interest income 17,843,073.35 13,995,639.90
Add: Other income 12,758,859.43 9,715,292.80
Investment income (Loss is indicated -5,257,778.42 1,575,595.65
by “-”)
Including: Income from investments in -5,254,232.18 -937,095.68
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 (Loss is -2,144,694.51 -22,446,199.48
indicated by “-”)
Impairment losses of assets (Loss is -20,365,487.85 -13,787,628.20
indicated by “-”)
Income from disposal of assets (Loss -1,416.28 14,405.47
is indicated by “-”)
III. Operating profit (Loss is indicated by “-”) 426,889,912.32 364,213,850.48
Add: Non-operating income 144,171.60 581,866.88
Less: Non-operating expenses 63,373.82 16,183,979.14
IV. Total profit (Total loss is indicated by “-”) 426,970,710.10 348,611,738.22
Less: Income tax expenses 79,816,536.07 72,530,863.59
V. Net profit (Net loss is indicated by “-”) 347,154,174.03 276,080,874.63
(I) Categorized by the nature of continuing operation
1. Net profit from continuing operations 347,154,174.03 276,080,874.63
(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 shareholders of 364,296,789.10 284,999,721.17
the parent company (Net loss is indicated by “-”)
2. Profit or loss attributable to minority -17,142,615.07 -8,918,846.54
interests (Net loss is indicated by “-”)
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VI. Other comprehensive income, net of tax -733,371.78 -337,434.36
(I) Other comprehensive income attributable -733,371.78 -337,434.36
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 enterprises’ own
credit risks
2. Other comprehensive income that will be -733,371.78 -337,434.36
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 -733,371.78 -337,434.36
statements denominated in foreign currencies
(7) Others
(II) Other comprehensive income attributable
to minority interests, net of tax
VII. Total comprehensive income 346,420,802.25 275,743,440.27
(I) Total comprehensive income 363,563,417.32 284,662,286.81
attributable to owners of the parent company
(II) Total comprehensive income -17,142,615.07 -8,918,846.54
attributable to minority interests
VIII. Earnings per share
(I) Basic earnings per share (RMB/share) 1.82 1.42
(II) Diluted earnings per share (RMB/share) 1.81 1.42
For business combinations involving enterprises under the common control in the current period, the net
profit realized by the acquirees before the combinations is: RMB0.00, and the net profit realized thereby
in the prior period is: RMB0.00.
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The Third Quarter Report in 2021
Chairman: HOU Juncheng Chief Financial Officer: WANG Li Head of the Accounting
Department: WANG Li
Consolidated Cash Flow Statement
January to September 2021
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB Audit Type: Unaudited
Item First three quarters of First three quarters of
2021 2020
(Jan. to Sep.) (Jan. to Sep.)
I. Cash flows from operating activities:
Cash receipts from the sale of goods 3,372,200,521.00 2,373,276,017.51
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
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 18,501,241.84 5,905,584.80
Other cash receipts relating to 59,335,619.38 41,790,311.05
operating activities
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Sub-total of cash inflows from 3,450,037,382.22 2,420,971,913.36
operating activities
Cash payments for goods purchased 1,046,478,917.19 943,473,030.33
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 behalf of 329,997,403.51 265,981,057.75
employees
Payments of various types of taxes 336,370,801.47 260,143,803.59
Other cash payments relating to 1,246,701,763.29 744,477,741.05
operating activities
Sub-total of cash outflows from 2,959,548,885.46 2,214,075,632.72
operating activities
Net cash flow from operating 490,488,496.76 206,896,280.64
activities
II. Cash flows from investing activities:
Cash receipts from disposals and 211,450,000.00
recovery of investments
Cash receipts from investment 4,145,309.14
income
Net cash receipts from disposals of 1,000.00
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 1,000.00 215,595,309.14
investing activities
Cash payments to acquire or 163,266,984.07 61,017,722.22
construct fixed assets, intangible assets
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The Third Quarter Report in 2021
and other long-term assets
Cash payments to acquire 34,206,800.00 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 to 61,087,857.19 1,579,710.89
investing activities
Sub-total of cash outflows from 258,561,641.26 129,177,433.11
investing activities
Net cash flow from investing -258,560,641.26 86,417,876.03
activities
III. Cash flows from financing activities:
Cash receipts from capital 450,000.00 1,466,300.00
contributions
Including: cash receipts from capital 450,000.00 1,466,300.00
contributions from minority owners of
subsidiaries
Cash receipts from borrowings 200,000,000.00 299,000,000.00
Other cash receipts relating to
financing activities
Sub-total of cash inflows from 200,450,000.00 300,466,300.00
financing activities
Cash repayments of borrowings 299,000,000.00 212,186,065.10
Cash payments for distribution of 151,549,422.10 126,023,183.02
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 to 1,647,883.50
financing activities
Sub-total of cash outflows from 452,197,305.60 338,209,248.12
financing activities
Net cash flow from financing -251,747,305.60 -37,742,948.12
activities
IV. Impact of foreign exchange rate -733,371.78 -337,434.36
changes on cash and cash equivalents
V. Net increase in cash and cash -20,552,821.88 255,233,774.19
equivalents
Add: Opening balance of cash and 1,299,818,901.99 1,099,092,785.07
cash equivalents
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The Third Quarter Report in 2021
VI. Closing balance of cash and cash 1,279,266,080.11 1,354,326,559.26
equivalents
Chairman: HOU Juncheng Chief Financial Officer: WANG Li Head of the Accounting
Department: WANG Li
(III) In 2021, the company restates financial statements for the beginning of the year due to the
implementation of the new lease standards
Applicable √N/A
Please be notified of above.
Board of Director of Proya Cosmetics Co., Ltd.
October 27, 2021
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