2022 Q1 Report
Stock Code: 603605 Abbreviation: Proya
Bond Code: 113634 Bond Abbreviation: Proya Convertible Bond
Proya Cosmetics Co., Ltd.
The First Quarter Report in 2022
The Board of Directors and all directors of the Company warrant that this
announcement does not contain any false records, misleading statements or material
omissions, and shall be severally and jointly liable for the truthfulness, accuracy and
completeness of the contents herein contained.
Important Reminders
The Board of Directors, Board of Supervisors, directors, supervisors, and officers of the Company
warrant that this Quarterly Report is authentic, accurate and complete, and does not contain any false
records, misleading statements or major omissions, and that they will be jointly and severally liable
therefore.
The CEO, CFO and the head of accounting department of the Company warrant that all financial
statement information in the Quarterly Report is authentic, accurate and complete.
Have the financial statements for Q1 been audited?
"□ Yes" "√ No"
I. Key Financial Data
(I) Key accounting data and financial indicators
Unit: Yuan Currency: RMB
The current reporting Change over the same
Item
period period of last year (%)
Operating revenue 1,254,357,336.99 38.53
Net profit attributable to shareholders of 158,420,986.20 44.16
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2022 Q1 Report
the listed company
Net profit attributable to shareholders of
the listed company net of non-recurring 146,724,879.18 36.21
profit and loss
Net cash flow from operating activities 342,107,055.69 521.66
Basic earnings per share (RMB/share) 0.79 43.64
Diluted earnings per share (RMB/share) 0.78 41.82
Weighted average ROE (%) 5.36 Increased by 0.87 percent
End of the reporting Change over the same
End of last year
period period last year
Total assets 4,845,558,049.59 4,633,049,783.03 4.59
Owner's equity attributable
to shareholders of the 2,993,662,707.64 2,876,975,835.98 4.06
listed company
(II) Items and amounts of non-recurring profit and loss
Unit: Yuan Currency: RMB
Item Amount for the current period Note
Gain or loss on disposal of
non-current assets
Unauthorized approval, or no formal
approval, or occasional tax refund or
relief
Government subsidies included in the 14,298,520.83
current profit and loss, excluding
those closely related to the
Company's normal operation and
granted constantly at a fixed amount
or quantity according to certain
standard based on state policies
Fund occupation fees payable by
non-financial businesses including
profit and loss in the current period
Income generated in case the
investment cost of acquiring any
subsidiary, associated enterprise and
joint venture is less than the net fair
value of the investee's identifiable
assets when an investment is acquired
Gain and loss on exchange of
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2022 Q1 Report
non-monetary assets
Gain and loss on authorizing others to
invest or manage assets
Provisions for various asset
impairments due to force majeure
factors such as natural disasters
Gain and loss on restructuring of
debts
Restructuring expenses, such as
re-settlement expenses and
integration cost
Profit and loss in excess of the fair
value generated from obviously
unfairly priced transactions
Net profit and loss of subsidiaries
generated from the merger of
companies under common control
from the beginning of the period to
the date of merger
Profit and loss arising from
contingent events unrelated to the
Company's normal operations
Profit and loss from changes in fair
value arising from holding of trading
financial assets, derivative financial
assets, trading financial liabilities and
derivative financial liabilities, and
investment gain from disposal of
trading financial assets, derivative
financial assets, trading financial
liabilities, derivative financial
liabilities and other debt investments,
except for effective hedging related to
the Company's normal operations
Reversal of provision for impairment
of receivables and contract assets
individually tested for impairment
Profit and loss from entrusted loans
Profit and loss arising from changes
in the fair value of investment
property subsequently measured with
the fair value model
Impact of one-time adjustments on
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2022 Q1 Report
the current profit and loss according
to the requirements of tax and
accounting laws and regulations on
the current profit and loss
Custody fee income from entrusted
operations
Other non-operating revenue and 271,742.01
expenses other than the items
mentioned above
Other profit and loss items under the
definition of non-recurring profit and
loss
Less: Impact of income tax 2,474,194.41
Impact of minority shareholders' 399,961.41
equity (after tax)
Total 11,696,107.02
Description of non-recurring profit and loss items enumerated in the Explanatory Announcement No. 1
on Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit
and Loss defined as recurring profit and loss items
"□ Applicable" "√ Not applicable"
(III) Changes in key accounting data and financial indicators and the main reasons
"√ Applicable" "□ Not applicable"
Change ratio Main reasons
Item
(%)
Operating Mainly due to a YOY growth of prime operating revenue by 38.60%,
38.53
revenue dominated by the growth in online direct sales.
Mainly because:
(1) Total profit increased by 57.26% YOY: Sales revenue increased
by38.53% YOY, gross profit increased by 45.34% YOY (gross profit
Net profit
margin increased YOY), expenses for four items for the period
attributable to
increased by 37.99% YOY, and other income increased YOY.
shareholders 44.16
(2) Net profit increased by 58.59% or RMB 62.58 million YOY.
of the listed
(3) The profit and loss of minority shareholders increased by RMB
company
14.06 million YOY, mainly due to increased amount of profit and
loss recognized by the minority shareholders of some controlled
subsidiaries.
Net profit Mainly because:
attributable to (1) Net profit attributable to shareholders of the listed company
shareholders 36.21 increased by RMB 48.52 million or 44.16% YOY;
of the listed (2) Non-recurring gain and loss attributable to shareholders of the
company net listed company increased by RMB 9.52 million YOY (mainly due to
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2022 Q1 Report
of a YOY growth in the amount of government subsidies received
non-recurring during the period).
profit and loss
Basic earnings
per share 43.64 The same reasons as above
(RMB/share)
Diluted
earnings per
41.82 The same reasons as above
share
(RMB/share)
Net flow increased by RMB 287 million YOY, mainly because:
(1) Factors of cash increase: Sales outstanding increased by RMB
245 million YOY (revenue increased YOY); payment for goods
Net cash flow decreased by RMB 56 million YOY (the sum of accounts payable
from operating 521.66 and bills payable as of the end of the current period increased from
activities the beginning of this year, but decreased from the same period last
year).
(2) Factors of cash decrease: Taxes paid increased by RMB 44
million YOY.
II. Shareholders
(I) Statement of the total number of ordinary shareholders, the number of preferred shareholders with
restored voting rights, and shareholdings of top 10 shareholders
Unit: share
Total number of preferred
Total number of ordinary
shareholders with restored voting
shareholders as of the end of 10,570 0
rights as of the end of the reporting
the reporting period
period (if any)
Shareholdings of top 10 shareholders
Number Pledge, marking
of shares or freezing
Shareh
held
Nature of Number of olding
Name of shareholder with
shareholder shares held ratio Numbe
restrictio Status
(%) r
ns on
sales
Domestic
Hou Juncheng natural 69,764,815 34.71 0 None
person
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2022 Q1 Report
HKSCC Others 46,410,868 23.09 0 None
Domestic
Fang Yuyou natural 36,347,843 18.08 0 None
person
Domestic
Cao Liangguo natural 3,769,938 1.88 0 None
person
ICBC - GF Multi-Factor
Flexible Allocation Hybrid Others 1,817,599 0.90 0 None
Securities Investment Fund
CCB - Yinhua Fuyu Themed
Hybrid Securities Investment Others 1,734,083 0.86 0 None
Fund
CCB - CUAM Consumer
Industry Hybrid Securities Others 1,700,084 0.85 0 None
Investment Fund
ICBC - Invesco Great Wall
Emerging Growth Hybrid Others 1,700,000 0.85 0 None
Securities Investment Fund
Aberdeen Standard
Investment Management
(Asia) Limited - Aberdeen Others 1,699,323 0.85 0 None
Standard - China A-Share
Fund
Domestic
Xu Junqing natural 1,235,999 0.61 None
person
Shareholdings of top 10 shareholders without restrictions on sales
Number of unrestricted tradable Type and number of shares
Name of shareholder
shares held Type of shares Number
RMB ordinary
Hou Juncheng 69,764,815 69,764,815
shares
RMB ordinary
HKSCC 46,410,868 46,410,868
shares
RMB ordinary
Fang Yuyou 36,347,843 36,347,843
shares
RMB ordinary
Cao Liangguo 3,769,938 3,769,938
shares
ICBC - GF Multi-Factor
RMB ordinary
Flexible Allocation Hybrid 1,817,599 1,817,599
shares
Securities Investment Fund
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2022 Q1 Report
CCB - Yinhua Fuyu Themed
RMB ordinary
Hybrid Securities Investment 1,734,083 1,734,083
shares
Fund
CCB - CUAM Consumer
RMB ordinary
Industry Hybrid Securities 1,700,084 1,700,084
shares
Investment Fund
ICBC - Invesco Great Wall
RMB ordinary
Emerging Growth Hybrid 1,700,000 1,700,000
shares
Securities Investment Fund
Aberdeen Standard
Investment Management
RMB ordinary
(Asia) Limited - Aberdeen 1,699,323 1,699,323
shares
Standard - China A-Share
Fund
RMB ordinary
Xu Junqing 1,235,999 1,235,999
shares
Association or concerted
action between the Fang Yuyou is the younger brother of Hou Juncheng's spouse Fang
shareholders mentioned Aiqin, so Hou Juncheng and Fang Yuyou are associated.
above
Top 10 shareholders and top
10 unrestricted shareholders
participating in margin
None
financing and securities
lending and refinancing (if
any)
III. Other Reminders
Other important information on the Company's operation during the reporting period to be made known
to investors
"□ Applicable" "√ Not applicable"
IV. Quarterly Financial Statements
(I) Type of audit opinion
"□ Applicable" "√ Not applicable"
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2022 Q1 Report
(II) Financial statements
Consolidated Balance Sheet
March 31, 2022
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB Audit type: Unaudited
Item As of March 31, 2022 As of December 31, 2021
Current assets:
Cash and cash equivalents 2,639,939,888.51 2,391,048,249.81
Provision for settlement
Lendings to banks and other
financial institutions
Trading financial assets
Derivative financial assets
Bill receivable
Accounts receivable 150,599,732.70 138,626,627.90
Receivables financing 6,627,703.00 3,242,000.00
Prepayments 48,181,175.17 58,406,647.11
Premiums receivable
Reinsurance accounts receivable
Provision for reinsurance contract
receivable
Other receivables 44,908,445.77 66,043,707.81
Including: Interest receivable
Dividends receivable
Securities purchased under resale
agreements
Inventory 426,288,519.14 447,938,758.29
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 47,786,244.41 53,534,962.39
Total current assets 3,364,331,708.70 3,158,840,953.31
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 172,131,177.24 169,959,536.27
Investments in other equity 56,402,400.00 56,402,400.00
instruments
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2022 Q1 Report
Other non-current financial assets
Investment property 69,543,807.61 70,321,868.00
Fixed assets 560,326,096.14 558,981,209.20
Construction in progress 135,281,009.05 108,678,896.27
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 392,695,636.64 397,145,124.29
Development cost
Goodwill
Long-term deferred expenses 27,265,269.92 29,756,474.11
Deferred tax assets 24,172,820.31 38,796,018.02
Other non-current assets 43,408,123.98 44,167,303.56
Total non-current assets 1,481,226,340.89 1,474,208,829.72
Total assets 4,845,558,049.59 4,633,049,783.03
Current liabilities:
Short-term bank loans 200,251,506.85 200,251,506.85
Borrowings from the central bank
Loans from banks and other
financial institutions
Trading financial liabilities
Derivative financial liabilities
Bills payable 80,244,771.40 79,156,771.40
Accounts payable 477,350,760.31 404,026,241.16
Advances from customers 188,470.04 173,769.85
Contract liabilities 69,239,110.48 91,151,985.32
Securities sold under repurchase
agreements
Due from customers and banks
Receivings from vicariously
traded securities
Receivings from vicariously sold
securities
Employee benefits payable 84,106,946.79 78,649,049.72
Tax payable 132,959,505.45 99,893,176.97
Other payables 58,330,633.84 62,162,153.55
Including: Interest payable
Dividends payable
Fees and commissions
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities due within
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2022 Q1 Report
one year
Other current liabilities 1,574,450.01 9,521,415.32
Total current liabilities 1,104,246,155.17 1,024,986,070.14
Non-current liabilities:
Reserves for insurance contracts
Long-term bank loans
Bonds payable 703,452,989.64 695,586,778.80
Including: Preferred stock
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Estimated liabilities 8,925,936.88 10,812,084.88
Deferred income 5,896,490.83 6,416,263.33
Deferred tax liabilities 8,408,158.81 8,408,158.81
Other non-current liabilities
Total non-current liabilities 726,683,576.16 721,223,285.82
Total liabilities 1,830,929,731.33 1,746,209,355.96
Owner's equity (or Shareholders'
equity):
Paid-in capital (or share capital) 201,009,966.00 201,009,966.00
Other equity instruments 50,956,622.11 50,956,622.11
Including: Preferred stock
Perpetual bonds
Capital reserve 787,017,211.57 834,272,205.66
Less: Treasury stock 5,628,128.21
Other comprehensive income -1,354,922.76 -1,247,674.10
Special reserve
Surplus reserve 100,634,780.00 100,634,780.00
General risk reserve
Undistributed profit 1,855,399,050.72 1,696,978,064.52
Total owner's equity (or 2,993,662,707.64 2,876,975,835.98
shareholders' equity) attributable to
the parent company
Minority interests 20,965,610.62 9,864,591.09
Total owner's equity (or 3,014,628,318.26 2,886,840,427.07
shareholders' equity)
Total liabilities and owners' 4,845,558,049.59 4,633,049,783.03
equity (or shareholders' equity)
Legal representative: Hou Juncheng CFO: Wang Li Head of accounting department: Wang Li
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2022 Q1 Report
Consolidated Income Statement
January to March 2022
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB Audit type: Unaudited
Item Q1 2022 Q1 2021
I. Gross revenue 1,254,357,336.99 905,464,673.13
Including: Operating revenue 1,254,357,336.99 905,464,673.13
Interest income
Earned premium
Fee and commission income
II. Total operating expenses 1,039,831,788.21 779,738,541.63
Including: Operating expenses 406,738,634.99 322,264,228.48
Interest expenses
Fee and commissions expenses
Surrender value
Net claims paid
Net provision for insurance liability
reserves
Bond insurance expenses
Reinsurance expenses
Taxes and surcharges 13,048,639.06 8,144,353.90
Sales expenses 531,525,291.08 377,754,359.96
Administrative expenses 64,720,039.25 52,312,582.26
R&D expenses 29,984,297.07 17,656,819.49
Financial expenses -6,185,113.24 1,606,197.54
Including: Interest expenses 3,290,554.12 2,959,908.29
Interest income 11,156,538.55 5,773,529.43
Add: Other income 14,423,871.50 3,530,669.17
Investment income ("-" for losses) -2,057,259.04 -83,299.74
Including: Income from investment -2,057,259.04 -79,753.50
in associates and joint ventures
Income from derecognition of
financial assets measured at amortization
Exchange gains ("-" for losses)
Net exposure hedging gains ("-" for
losses)
Income from changes in fair value
("-" for losses)
Credit impairment losses ("-" for -3,472,766.96 2,274,620.44
losses)
Asset impairment losses ("-" for -17,017,524.51 -328,307.81
losses)
Gains from disposal of assets ("-" for -1,416.28
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2022 Q1 Report
losses)
III. Operating profit ("-" for losses) 206,401,869.77 131,118,397.28
Add: Non-Operating revenue 414,527.62 30,582.33
Less: Non-operating expenses 661,221.54 54,523.45
IV. Total profit ("-" for total losses) 206,155,175.85 131,094,456.16
Less: income tax expenses 36,756,456.24 24,279,745.48
V. Net profit ("-" for net losses) 169,398,719.61 106,814,710.68
(I) Classification by continuity as a going concern
1. Net profit from continuing as a going 169,398,719.61 106,814,710.68
concern ("-" for net losses)
2. Net profit from discontinuing as a
going concern ("-" for net losses)
(II) Classification by ownership
1. Net profit attributable to shareholders 158,420,986.20 109,895,944.66
of the parent company ("-" for net losses)
2. Minority interest income ("-" for net 10,977,733.41 -3,081,233.98
losses)
VI. Other comprehensive income, net of tax -107,248.66 -364,177.76
(I) Other comprehensive income, net of -107,248.66 -364,177.76
tax attributable to owners of the parent
company
1. Other comprehensive income that
cannot be reclassified to profit or loss
(1) Changes arising from the
re-measurement of net liabilities or net
assets of defined benefit plans
(2) Other comprehensive income that
cannot be reclassified into profit or loss
under the equity method
(3) Changes in the fair value of other
equity instrument investments
(4) Changes in the fair value of the
Company's own credit risks
2. Other comprehensive income that -107,248.66 -364,177.76
will be reclassified into profit or loss
(1) Other comprehensive income that can
be reclassified into profit or loss under the
equity method
(2) Changes in the fair value of other debt
investments
(3) Amount of financial assets reclassified
into other comprehensive income
(4) Provision for credit impairment of
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2022 Q1 Report
other debt investments
(5) Cash flow hedging reserve
(6) Differences in translation of foreign -107,248.66 -364,177.76
currency financial statements
(7) Others
(II) Other comprehensive income, net of
tax attributable to minority shareholders
VII. Total comprehensive income 169,291,470.95 106,450,532.92
(I) Total comprehensive income 158,313,737.54 109,531,766.90
attributable to owners of the parent company
(II) Total comprehensive income 10,977,733.41 -3,081,233.98
attributable to minority shareholders
VIII. EPS:
(I) Basic earnings per share (RMB/share) 0.79 0.55
(II) Diluted earnings per share 0.78 0.55
(RMB/share)
In the case of merger under common control in the current period, the net profit realized by the merged
party before the merger was RMB 0.00, and the net profit realized by the merged party for the previous
period was RMB 0.00.
Legal representative: Hou Juncheng CFO: Wang Li Head of accounting department: Wang Li
Consolidated Cash Flow Statement
January to March 2022
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB Audit type: Unaudited
Item Q1 2022 Q1 2021
I. Cash flows from operating
activities:
Cash received from sales of goods 1,334,925,554.96 1,089,758,485.27
and rendering of services
Net increase in deposits from
customers and due to banks and other
financial institutions
Net increase in borrowings from the
central bank
Net increase in loans from banks and
other financial institutions
Cash received from premiums under
original insurance contracts
Net cash received from reinsurance
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2022 Q1 Report
operations
Net increase in deposits and
investments from policyholders
Cash received from interest, fees and
commissions
Net increase in loans from banks and
other financial institutions
Net increase in repurchase operations
Net cash received from vicariously
traded securities
Tax refund 47,205.42 3,124,105.70
Other cash received related to 38,518,490.99 20,519,108.16
operating activities
Subtotal of cash inflows from 1,373,491,251.37 1,113,401,699.13
operating activities
Cash received from purchasing goods 364,344,313.82 420,589,796.75
and accepting labor services
Net increase in loans and advances to
customers
Net increase in deposits with the
central bank and other banks
Cash paid for original insurance
contract claims
Net increase in lendings to banks and
other financial institutions
Cash received from interest, fees and
commissions
Cash paid for policy dividends
Cash paid to and for employees 140,426,002.53 134,515,707.43
Cash paid for taxes and surcharges 116,848,805.19 72,766,684.10
Cash paid for other operating 409,765,074.14 430,498,541.95
activities
Subtotal of cash outflows from 1,031,384,195.68 1,058,370,730.23
operating activities
Net cash flow from operating 342,107,055.69 55,030,968.90
activities
II. Cash flows from investing
activities:
Cash back on investments
Cash received from investment
income
Net cash received from the disposal of 1,000.00
fixed assets, intangible assets and other
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2022 Q1 Report
long-term assets
Net cash received from the disposal of
subsidiaries and other units
Cash received from other investing
activities
Subtotal of cash inflows from 1,000.00
investing activities
Cash paid for the acquisition and 35,510,518.32 45,788,653.75
construction of fixed assets, intangible
assets and other long-term assets
Cash paid for investments 4,228,900.00
Net increase in pledge loans
Net cash paid for the acquisition of
subsidiaries and other units
Cash paid for other investing
activities
Subtotal of cash outflows from 39,739,418.32 45,788,653.75
investing activities
Net cash flows from investing -39,739,418.32 -45,787,653.75
activities
III. Cash flows from financing
activities:
Cash received from attraction of 250,000.00
investments
Including: Cash received from 250,000.00
attraction of investments from minority
shareholders
Cash received from borrowings 100,000,000.00
Cash received for other fundraising
activities
Subtotal of cash inflows from 100,250,000.00
financing activities
Cash paid for debt repayments 100,000,000.00 99,000,000.00
Cash paid for distribution of 1,898,750.01 2,852,875.00
dividends and profits or payment of
interests
Including: Dividends and profits paid
by subsidiaries to minority shareholders
Cash paid for other fundraising 45,000,000.00 486,631.52
activities
Subtotal of cash outflows from 146,898,750.01 102,339,506.52
financing activities
Net cash flows from financing -46,648,750.01 -102,339,506.52
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2022 Q1 Report
activities
IV. Effect of changes in exchange -107,248.66 -364,177.76
rates on cash and cash equivalents
V. Net increase in cash and cash 255,611,638.70 -93,460,369.13
equivalents
Add: Beginning balance of cash and 2,378,334,768.09 1,401,850,754.88
cash equivalents
VI. Ending balance of cash and cash 2,633,946,406.79 1,308,390,385.75
equivalents
Legal representative: Hou Juncheng CFO: Wang Li Head of accounting department: Wang Li
The initial implementation of the new accounting standards from 2022 by adjusting the financial
statements at the beginning of the year of the initial implementation
"□ Applicable" "√ Not applicable"
End of the announcement.
Board of Directors of Proya Cosmetics Co., Ltd
April 20, 2022
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