The Third Quarter Report in 2022
Stock Code: 603605 Stock Abbreviation : Proya
Bond Code: 113634 Bond Abbreviation: Proya convertible bond
Proya Cosmetics Co., Ltd.
The Third Quarter Report in 2022
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 department 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 the
YOY change From the beginning
period from the
The Reporting in the of the year to the end
Item beginning of the year
Period Reporting of the Reporting
to the end of the
Period (%) Period
Reporting Period (%)
Operating income 1,336,130,787.67 22.07 3,962,074,031.96 31.53
Net profit attributable to 198,375,641.64 43.55 495,315,157.18 35.96
shareholders of the listed
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The Third Quarter Report in 2022
company
Net profit attributable to
shareholders of the listed
196,100,724.25 44.07 476,998,142.78 33.84
company after deducting
non-recurring profit or loss
Net cash flow from
N/A N/A 771,873,333.67 57.37
operating activities
Basic earnings per share
0.71 2.90 1.76 -3.30
(RMB/share)
Diluted earnings per share
0.70 1.45 1.74 -3.87
(RMB/share)
Up by 1.17
Weighted average return on Up by 2.01 percentage
6.59 percentage 16.51
equity (%) points
points
Change at the end of
End of the the Reporting Period
End of prior year
Reporting Period over the end of prior
year (%)
Total assets 5,461,758,028.57 4,633,049,783.03 17.89
Owner’s equity attributable
to shareholders of the listed 3,178,288,666.18 2,876,975,835.98 10.47
company
Note: “The Reporting Period” shall refer to the 3-month period ended September 30, 2022, as follows.
(II) Items and Amounts of Non-recurring Profit or Loss
Unit: Yuan Currency: RMB
Amount in the period from
Amount in the Reporting the beginning of the year
Item Note
Period to the end of the Reporting
Period
Gains or losses from
disposal of non-current
assets
Unauthorized examination
and approval, or lack of
official approval
documents, or occasional
tax revenue return and
abatement
Government grants 3,140,446.53 23,580,544.90
recognized in profit or
loss for the current period
(excluding government
grants that are closely
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The Third Quarter Report in 2022
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
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The Third Quarter Report in 2022
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, 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 -66,506.02 214,968.49
income and expenses
besides the above items
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Other items that conform
to the definition of
non-recurring profit or
loss
Less: Effect of income tax 806,896.17 4,416,105.71
Effect of minority -7,873.05 1,062,393.28
equity (after tax)
Total 2,274,917.39 18,317,014.40
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 Reasons
√Applicable N/A
Item Change ratio (%) Primary reasons
Operating income (from the Mainly due to: 1. the YOY increase in the online channel
beginning of the year to the 31.53 income; 2. the rapid growth of the Second-growth-curve
end of the Reporting Period) brands.
Net profit attributable to Mainly due to: 1. the YOY increase in the online channel
shareholders of the listed income; 2. the increase of gross profit margin and the
43.55
company (the Reporting YOY increase in gross profit, operating profit and total
Period) profit.
Net profit attributable to The specific reasons are the same as above.
shareholders of the listed
company after deducting 44.07
non-recurring profit or loss
(the Reporting Period)
Mainly due to: 1. the YOY increase in the online channel
income; 2. (1) Ningbo Timage Cosmetics Co., Ltd. (a
Net profit attributable to
controlled subsidiary of the Company) turned losses into
shareholders of the listed
profits during the Reporting Period; (2) Shanghai
company (from the beginning 35.96
Healthlong Biochemical Technology Co., Ltd. (a
of the year to the end of the
controlled subsidiary of the Company) has ceased to be
Reporting Period)
included in the consolidated financial statements since
May 2021.
Net profit attributable to The specific reasons are the same as above.
shareholders of the listed
company after deducting
non-recurring profit or loss 33.84
(from the beginning of the year
to the end of the Reporting
Period)
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Net cash flow from operating Mainly due to: the YOY increase in the operating income
activities (from the beginning and the increase of cash inflows from operating activities.
57.37
of the year to the end of the
Reporting Period)
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 13,764 with voting rights by the end of the 0
Reporting Period Reporting Period (if any)
Shareholdings of top ten shareholders
Pledged, placed
with mark,
Nature of Number of Shareholding Number of
Name of shareholder restricted lock-up or not
shareholder shares held ratio (%)
shares Share
Number
status
Domestic
HOU Juncheng 97,670,741 34.45 0 None
natural person
Hong Kong Securities Clearing
Other 65,496,052 23.10 0 None
Company Limited
Domestic
FANG Yuyou 49,639,480 17.51 0 None
natural person
China Construction Bank Co.,
Ltd. - Yinhua Fuyu Theme
Other 5,900,165 2.08 0 None
Hybrid Securities Investment
Fund
China Construction Bank Co.,
Ltd. - CUAM Consumer
Other 2,600,058 0.92 0 None
Industry Hybrid Securities
Investment Fund
Aberdeen Standard Investment
Management (Asia) Co., Ltd. -
Other 2,552,293 0.90 0 None
Aberdeen Standard - China
A-share Equity Fund
Industrial and Commercial Bank
of China Limited - Jingshun
Changcheng Emerging Growth Other 2,380,000 0.84 0 None
Hybrid Securities Investment
Fund
Domestic
CAO Liangguo 2,268,997 0.80 0 None
natural person
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The Third Quarter Report in 2022
Industrial and Commercial Bank
of China Limited - CUAM
Other 1,100,038 0.39 0 None
Consumption Upgrade Hybrid
Securities Investment Fund
Domestic
XU Junqing 926,239 0.33 0 None
natural person
Shareholding of top ten unrestricted shareholders
Number of unrestricted Type and number of shares
Name of shareholder
outstanding shares held Type Number
HOU Juncheng 97,670,741 RMB common stock 97,670,741
Hong Kong Securities Clearing
65,496,052 RMB common stock 65,496,052
Company Limited
FANG Yuyou 49,639,480 RMB common stock 49,639,480
China Construction Bank Co., Ltd.
- Yinhua Fuyu Theme Hybrid 5,900,165 RMB common stock 5,900,165
Securities Investment Fund
China Construction Bank Co., Ltd.
- CUAM Consumer Industry
2,600,058 RMB common stock 2,600,058
Hybrid Securities Investment
Fund
Aberdeen Standard Investment
Management (Asia) Co., Ltd. -
2,552,293 RMB common stock 2,552,293
Aberdeen Standard - China
A-share Equity Fund
Industrial and Commercial Bank
of China Limited - Jingshun
Changcheng Emerging Growth 2,380,000 RMB common stock 2,380,000
Hybrid Securities Investment
Fund
CAO Liangguo 2,268,997 RMB common stock 2,268,997
Industrial and Commercial Bank
of China Limited - CUAM
1,100,038 RMB common stock 1,100,038
Consumption Upgrade Hybrid
Securities Investment Fund
XU Junqing 926,239 RMB common stock 926,239
Description of the association
FANG Yuyou is the younger brother of HOU Juncheng’s spouse FANG
relationship or concerted action of
Aiqin, so 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 None
the margin trading and refinancing
business (if any)
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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 2022
Consolidated Balance Sheet
September 30, 2022
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB Audit Type: Unaudited
Item September 30, 2022 December 31, 2021
Current assets:
Cash and cash equivalents 2,894,581,365.15 2,391,048,249.81
Balances with clearing agencies
Placements with banks and other financial institutions
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 61,903,721.27 138,626,627.90
Receivable financing 3,031,831.88 3,242,000.00
Prepayments 174,958,003.94 58,406,647.11
Premiums receivable
Amounts receivable under reinsurance contracts
Reinsurer's share of insurance contract reserves
Other receivables 20,569,960.98 66,043,707.81
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale agreements
Inventories 690,124,090.74 447,938,758.29
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 36,682,817.91 53,534,962.39
Total current assets 3,881,851,791.87 3,158,840,953.31
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
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Long-term equity investments 151,406,031.44 169,959,536.27
Other investments in equity instruments 146,402,400.00 56,402,400.00
Other non-current financial assets
Investment properties 69,349,497.02 70,321,868.00
Fixed assets 553,359,059.64 558,981,209.20
Construction in progress 177,430,957.16 108,678,896.27
Bearer biological assets
Oil and gas assets
Right of use assets
Intangible assets 424,758,523.08 397,145,124.29
Development expenditure
Goodwill
Long-term prepaid expenses 22,255,673.60 29,756,474.11
Deferred income tax assets 30,463,707.85 38,796,018.02
Other non-current Assets 4,480,386.91 44,167,303.56
Total non-current assets 1,579,906,236.70 1,474,208,829.72
Total assets 5,461,758,028.57 4,633,049,783.03
Current liabilities:
Short-term borrowings 200,251,506.85 200,251,506.85
Loans from the central bank
Taking from banks and other financial institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 64,606,867.00 79,156,771.40
Accounts payable 678,833,258.07 404,026,241.16
Receipts in advance 527,929.95 173,769.85
Contract liabilities 115,157,348.57 91,151,985.32
Financial assets sold under repurchase agreements
Customer deposits and deposits from banks and other
financial institutions
Funds from securities trading agencies
Funds from underwriting securities agencies
Employee benefits payable 117,186,385.92 78,649,049.72
Taxes payable 109,722,579.78 99,893,176.97
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The Third Quarter Report in 2022
Other payables 227,670,691.33 62,162,153.55
Including: Interest payable
Dividends payable
Fees and commissions payable
Amounts payable under reinsurance contracts
Held-for-sale liabilities
Non-current liabilities due within one year
Other current liabilities 11,562,619.94 9,521,415.32
Total current liabilities 1,525,519,187.41 1,024,986,070.14
Non-current liabilities:
Insurance contract reserves
Long-term borrowings
Bonds payable 718,644,660.27 695,586,778.80
Including: Preferred stock
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions 8,456,756.79 10,812,084.88
Deferred income 4,856,945.83 6,416,263.33
Deferred income tax liabilities 7,523,121.46 8,408,158.81
Other non-current liabilities
Total non-current liabilities 739,481,484.35 721,223,285.82
Total liabilities 2,265,000,671.76 1,746,209,355.96
Owner’s equity (or shareholders’ equity ):
Paid-in capital (or share capital) 283,519,194.00 201,009,966.00
Other equity instruments 50,906,662.82 50,956,622.11
Including: Preferred stock
Perpetual bonds
Capital reserve 890,391,200.83 834,272,205.66
Less: Treasury shares 164,976,000.00 5,628,128.21
Other comprehensive income -1,611,822.41 -1,247,674.10
Special reserve
Surplus reserve 100,634,780.00 100,634,780.00
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General risk reserve
Retained profits 2,019,424,650.94 1,696,978,064.52
Total owners’ equity (or shareholders’ equity) attributable 3,178,288,666.18 2,876,975,835.98
to equity holders of the parent company
Minority interests 18,468,690.63 9,864,591.09
Total owners’ equity (or shareholders’ equity) 3,196,757,356.81 2,886,840,427.07
Total liabilities and owners’ equity (shareholders’ 5,461,758,028.57 4,633,049,783.03
equity)
The chairman of the Company: CFO of the Company: WANG Head of Accounting
HOU Juncheng Li Department: WANG Li
Consolidated Income Statement
January to September, 2022
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB Audit Type: Unaudited
First three quarters of First three quarters of
Item 2022 2021
(Jan. to Sep.) (Jan. to Sep.)
I. Total operating income 3,962,074,031.96 3,012,251,856.14
Including: Operating revenue 3,962,074,031.96 3,012,251,856.14
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 3,246,045,594.62 2,570,351,426.19
Including: Operating costs 1,211,286,056.12 1,066,572,027.42
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
Taxes and surcharges 35,018,710.91 26,755,664.49
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Selling expenses 1,700,908,422.25 1,262,122,598.38
General and administrative expenses 235,718,481.10 165,503,097.12
Research and development expenses 95,367,183.34 52,455,578.02
Financial expenses -32,253,259.10 -3,057,539.24
Including: Interest expenses 9,827,780.80 7,219,717.71
Interest income 42,468,258.19 17,843,073.35
Add: Other income 23,810,575.67 12,758,859.43
Investment income (Loss is indicated -6,661,294.54 -5,257,778.42
by “-”)
Including: Income from investments in -6,658,316.04 -5,254,232.18
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 2,180,709.67 -2,144,694.51
indicated by “-”)
Impairment losses of assets (Loss is -113,537,444.60 -20,365,487.85
indicated by “-”)
Income from disposal of assets (Loss is -1,416.28
indicated by “-”)
III. Operating profit (Loss is indicated by “-”) 621,820,983.54 426,889,912.32
Add: Non-operating income 612,654.73 144,171.60
Less: Non-operating expenses 916,605.93 63,373.82
IV. Total profit (Total loss is indicated by “-”) 621,517,032.34 426,970,710.10
Less: Income tax expenses 117,310,409.13 79,816,536.07
V. Net profit (Net loss is indicated by “-”) 504,206,623.21 347,154,174.03
(I) Classified by the nature of continuing operations
1. Net profit from continuing operations (Net 504,206,623.21 347,154,174.03
loss is indicated by “-”)
2. Net profit from discontinued operations (Net
loss is indicated by “-”)
(II) Classified by ownership
1. Net profit attributable to shareholders of the 495,315,157.18 364,296,789.10
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The Third Quarter Report in 2022
parent company (Net loss is indicated by “-”)
2. Profit or loss attributable to minority 8,891,466.03 -17,142,615.07
interests (Net loss is indicated by “-”)
VI. Other comprehensive income, net of tax -364,148.31 -733,371.78
(I) Other comprehensive income attributable to -364,148.31 -733,371.78
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 -364,148.31 -733,371.78
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 -364,148.31 -733,371.78
statements denominated in foreign currencies
(7) Others
(II) Other comprehensive income attributable to
minority interests, net of tax
VII. Total comprehensive income 503,842,474.90 346,420,802.25
(I) Total comprehensive income attributable to 494,951,008.87 363,563,417.32
owners of the parent company
(II) Total comprehensive income attributable to 8,891,466.03 -17,142,615.07
minority interests
VIII. Earnings per share
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(I) Basic earnings per share (RMB/share) 1.76 1.82
(II) Diluted earnings per share (RMB/share) 1.74 1.81
In case of business combination under common control, net profit realized by the combined before the
combination in the current period was RMB0.00; net profit realized by the combined in the previous
period was RMB0.00.
The chairman of the Head of Accounting
CFO of the Company: WANG Li
Company: HOU Juncheng Department: WANG Li
Consolidated Cash Flow Statement
January to September 2022
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB Audit Type: Unaudited
First three quarters of First three quarters of
Item 2022 2021
(Jan. to Sep.) (Jan. to Sep.)
I. Cash flows from operating activities:
Cash receipts from the sale of goods and the rendering of 4,420,753,595.68 3,372,200,521.00
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 5,217,273.91 18,501,241.84
Other cash receipts relating to operating activities 94,308,291.64 59,335,619.38
Sub-total of cash inflows from operating activities 4,520,279,161.23 3,450,037,382.22
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Cash payments for goods purchased and services 1,333,409,994.35 1,046,478,917.19
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 employees 381,128,046.79 329,997,403.51
Payments of various types of taxes 398,116,900.07 336,370,801.47
Other cash payments relating to operating activities 1,635,750,886.35 1,246,701,763.29
Sub-total of cash outflows from operating activities 3,748,405,827.56 2,959,548,885.46
Net cash flow from operating activities 771,873,333.67 490,488,496.76
II. Cash flows from investing activities:
Cash receipts from disposals and recovery of investments
Cash receipts from investment income
Net cash receipts from disposals of fixed assets, 1,000.00
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 investing activities 1,000.00
Cash payments to acquire or construct fixed assets, 98,040,024.48 163,266,984.07
intangible assets and other long-term assets
Cash payments to acquire investments 104,185,427.27 34,206,800.00
Net increase in pledged loans receivables
Net cash payments for acquisitions of subsidiaries and
other business units
Other cash payments relating to investing activities 61,087,857.19
Sub-total of cash outflows from investing activities 202,225,451.75 258,561,641.26
Net cash flow from investing activities -202,225,451.75 -258,560,641.26
III. Cash flows from financing activities:
Cash receipts from capital contributions 165,676,000.00 450,000.00
Including: cash receipts from capital contributions from 700,000.00 450,000.00
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minority owners of subsidiaries
Cash receipts from borrowings 200,000,000.00 200,000,000.00
Other cash receipts relating to financing activities
Sub-total of cash inflows from financing activities 365,676,000.00 200,450,000.00
Cash repayments of borrowings 200,000,000.00 299,000,000.00
Cash payments for distribution of dividends or profits or 178,569,824.95 151,549,422.10
settlement of interest expenses
Including: payments for distribution of dividends or
profits to minority owners of subsidiaries
Other cash payments relating to financing activities 45,800,000.00 1,647,883.50
Sub-total of cash outflows from financing activities 424,369,824.95 452,197,305.60
Net cash flow from financing activities -58,693,824.95 -251,747,305.60
IV. Impact of foreign exchange rate changes on cash and -364,148.31 -733,371.78
cash equivalents
V. Net increase in cash and cash equivalents 510,589,908.66 -20,552,821.88
Add: Opening balance of cash and cash equivalents 2,378,334,768.09 1,401,850,754.88
VI. Closing balance of cash and cash equivalents 2,888,924,676.75 1,381,297,933.00
The chairman of the Company: CFO of the Company: Head of Accounting Department:
HOU Juncheng WANG Li WANG Li
In 2022, the company restates financial statements for the beginning of the year due to the
implementation of new accounting standards or interpretation thereof
Applicable √N/A
Please be notified of above.
Board of Director of Proya Cosmetics Co., Ltd.
October 27, 2022
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