2023 Q1 Report
Stock Code: 603605 Stock Abbreviation: Proya
Bond Code: 113634 Bond Abbreviation: Proya Convertible Bond
Proya Cosmetics Co., Ltd.
The First Quarter Report in 2023
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 legally liable for the truthfulness, accuracy and completeness of
the contents herein contained.
Important Notes
The Board of Directors, Board of Supervisors, directors, supervisors, and senior management 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
therefor.
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"
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2023 Q1 Report
I. Key Financial Data
(I) Key accounting data and financial indicators
Unit: Yuan Currency: RMB
In the current reporting Change over the same
Item
period period last year (%)
Operating revenue 1,621,514,039.25 29.27
Net profit attributable to shareholders of
208,032,832.00 31.32
the listed company
Net profit attributable to shareholders of
the listed company, net of non-recurring 197,980,896.41 34.93
profit and loss
Net cash flow from operating activities 409,773,960.44 19.78
Basic earnings per share (RMB per share) 0.73 -7.59
Diluted earnings per share (RMB per
0.72 -7.69
share)
Up by 0.33 percentage
Weighted average ROE (%) 5.69
points
Change over the
End of the
End of last year same period last year
reporting period
（%）
Total assets 6,156,154,781.38 5,778,071,824.19 6.54
Owner's equity attributable
to shareholders of the listed 3,761,234,781.67 3,524,488,659.96 6.72
company
(II) Items and amounts of non-recurring profit and loss
Unit: Yuan Currency: RMB
Item Amount for the current period Remarks
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2023 Q1 Report
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 current
profit and loss, except for those closely
related to the Company's normal operation
19,901,510.50
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 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
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2023 Q1 Report
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
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2023 Q1 Report
Impact of one-time adjustments on 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 expenses
-1,311,028.15
other than the items mentioned above
Other profit and loss items under the
definition of non-recurring profit and loss
Less: Income tax impact 4,813,770.60
Impact of minority shareholders' equity
3,724,776.16
(after tax)
Total 10,051,935.59
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 reasons
"√ Applicable" "□ Not applicable"
Item Change ratio (%) Main reasons
Mainly because:
(1) Total profit increased by 36.00% YOY:
Net profit attributable to
Sales revenue increased by 29.27% YOY,
shareholders of the listed 31.32
gross profit increased by 33.97% YOY
company
(gross profit margin increased YOY), and
expenses for four items for the period
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2023 Q1 Report
increased by 34.52% YOY.
(2) Net profit increased by 31.15% or
RMB52.77million YOY.
Mainly because:
(1) Net profit attributable to shareholders of
Net profit attributable to
the listed company increased by
shareholders of the listed
34.93 RMB49.61million or 31.32% YOY;
company, net of non-recurring
(2) Non-recurring gain and loss attributable
profit and loss
to shareholders of the listed company
decreased by RMB1.64million 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 Total number of preferred
ordinary shareholders with restored
shareholders as of 13,080 voting rights as of the end 0
the end of the of the reporting period (if
reporting period any)
Shareholdings of top 10 shareholders
Number of Pledge, marking
shares held or freezing
Nature of Number of Shareholding
Name of shareholder with
shareholder shares held ratio (%)
restrictions Status Number
on sales
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2023 Q1 Report
Domestic
HOU Juncheng natural 97,670,741 34.45 0 None
person
HKSCC Others 67,311,654 23.74 0 None
Domestic
FANG Yuyou natural 42,589,470 15.02 0 None
person
CCB - Yinhua Fuyu
Themed Hybrid
Others 6,518,716 2.30 0 None
Securities
Investment Fund
CCB - CUAM
Consumer Industry
Others 3,100,013 1.09 0 None
Hybrid Securities
Investment Fund
Aberdeen Standard
Investment
Management (Asia)
Others 2,992,893 1.06 0 None
Limited - Aberdeen
Standard - China A-
Share Fund
ICBC - Invesco
Great Wall
Emerging Growth Others 2,380,000 0.84 0 None
Hybrid Securities
Investment Fund
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2023 Q1 Report
ICBC - CUAM
Consumer Upgrade
Others 1,500,089 0.53 0 None
Hybrid Securities
Investment Fund
Domestic
CAO Liangguo natural 1,362,537 0.48 0 None
person
J. P. Morgan
Securities PLC -
Others 1,241,094 0.44 0 None
Funds in the Hands
of the Localities
Shareholdings of top 10 shareholders without restrictions on sales
Type and number of shares
Name of shareholder Number of unrestricted tradable shares held
Type of shares Number
RMB ordinary
HOU Juncheng 97,670,741 97,670,741
shares
RMB ordinary
HKSCC 67,311,654 67,311,654
shares
RMB ordinary
FANG Yuyou 42,589,470 42,589,470
shares
CCB - Yinhua Fuyu
Themed Hybrid RMB ordinary
6,518,716 6,518,716
Securities shares
Investment Fund
CCB - CUAM
Consumer Industry RMB ordinary
3,100,013 3,100,013
Hybrid Securities shares
Investment Fund
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2023 Q1 Report
Aberdeen Standard
Investment
Management (Asia) RMB ordinary
2,992,893 2,992,893
Limited - Aberdeen shares
Standard - China A-
Share Fund
ICBC - Invesco
Great Wall
RMB ordinary
Emerging Growth 2,380,000 2,380,000
shares
Hybrid Securities
Investment Fund
ICBC - CUAM
Consumer Upgrade RMB ordinary
1,500,089 1,500,089
Hybrid Securities shares
Investment Fund
RMB ordinary
CAO Liangguo 1,362,537 1,362,537
shares
J. P. Morgan
Securities PLC - RMB ordinary
1,241,094 1,241,094
Funds in the Hands shares
of the Localities
Association or
concerted action
FANG Yuyou is the younger brother of HOU Juncheng's spouse FANG Aiqin,
between the
so HOU Juncheng and FANG Yuyou are associated.
shareholders
mentioned above
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2023 Q1 Report
Top 10 shareholders
and top 10
unrestricted
shareholders
participating in None
margin financing
and securities
lending and
refinancing (if any)
III. Other Notes
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"
(II) Financial statements
Consolidated Balance Sheet
March 31, 2023
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB Audit type: Unaudited
Item March 31, 2023 December 31, 2022
Current assets:
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2023 Q1 Report
Cash and cash equivalents 3,520,870,484.68 3,161,003,085.05
Provision for settlement
Lendings to banks and other financial institutions
Trading financial assets
Derivative financial assets
Bill receivable
Accounts receivable 130,264,461.82 102,157,898.41
Receivables financing 2,787,324.36
Prepayments 165,455,351.77 91,483,523.15
Premiums receivable
Reinsurance accounts receivable
Provision for reinsurance contract receivable
Other receivables 40,105,357.34 73,564,083.63
Including: Interest receivable
Dividends receivable
Securities purchased under resale agreements
Inventory 601,770,220.71 669,051,326.73
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 44,969,413.93 49,735,996.57
Total current assets 4,506,222,614.61 4,146,995,913.54
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 133,775,260.61 138,533,377.46
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2023 Q1 Report
Other equity instrument investments 146,402,400.00 146,402,400.00
Other non-current financial assets
Investment property 66,997,150.63 68,654,700.81
Fixed assets 558,845,620.89 570,376,309.67
Construction in progress 237,679,319.49 207,378,935.86
Productive biological assets
Oil and gas assets
Right-of-use assets 5,891,766.97 6,410,634.25
Intangible assets 415,898,787.75 420,316,883.26
Development cost
Goodwill
Long-term deferred expenses 17,335,139.57 19,142,604.46
Deferred tax assets 61,696,773.57 48,305,338.82
Other non-current assets 5,409,947.29 5,554,726.06
Total non-current assets 1,649,932,166.77 1,631,075,910.65
Total assets 6,156,154,781.38 5,778,071,824.19
Current liabilities:
Short-term bank loans 200,195,890.41 200,195,890.41
Borrowings from the central bank
Loans from banks and other financial institutions
Trading financial liabilities
Derivative financial liabilities
Bills payable 73,238,168.12 69,626,352.12
Accounts payable 646,031,687.27 475,427,484.23
Advances from customers 320,390.05 464,328.26
Contract liabilities 197,536,973.93 174,602,833.91
Securities sold under repurchase agreements
Due from customers and banks
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2023 Q1 Report
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Employee benefits payable 66,930,390.39 124,938,749.36
Tax payable 170,946,750.82 152,918,871.45
Other payables 223,414,478.54 216,392,183.41
Including: Interest payable
Dividends payable
Fees and commissions
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities due within one year 2,546,904.84 2,549,452.14
Other current liabilities 10,910,746.59 10,820,499.59
Total current liabilities 1,592,072,380.96 1,427,936,644.88
Non-current liabilities:
Reserves for insurance contracts
Long-term bank loans
Bonds payable 732,523,152.82 724,491,557.93
Including: Preferred stock
Perpetual bonds
Lease liabilities 3,169,504.67 3,718,119.41
Long-term payables
Long-term employee benefits payable
Estimated liabilities 16,161,718.09 59,282,928.68
Deferred income 5,880,038.83 6,399,811.33
Deferred tax liabilities 18,771,920.81 19,019,431.67
Other non-current liabilities
Total non-current liabilities 776,506,335.22 812,911,849.02
Total liabilities 2,368,578,716.18 2,240,848,493.90
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2023 Q1 Report
Owner's equity (or Shareholders' equity):
Paid-in capital (or share capital) 283,520,262.00 283,519,469.00
Other equity instruments 50,895,917.94 50,903,510.12
Including: Preferred stock
Perpetual bonds
Capital reserve 943,231,816.87 914,815,786.22
Less: Treasury stock 164,976,000.00 164,976,000.00
Other comprehensive income -1,614,544.83 -1,918,603.07
Special reserve
Surplus reserve 141,756,976.00 141,756,976.00
General risk reserve
Undistributed profit 2,508,420,353.69 2,300,387,521.69
Total owner's equity (or shareholders' equity)
3,761,234,781.67 3,524,488,659.96
attributable to the parent company
Minority interests 26,341,283.53 12,734,670.33
Total owner's equity (or shareholders' equity) 3,787,576,065.20 3,537,223,330.29
Total liabilities and owners' equity (or
6,156,154,781.38 5,778,071,824.19
shareholders' equity)
Legal representative: HOU Person in charge of accounting: Head of the accounting
Juncheng WANG Li organization: WANG Li
Consolidated Income Statement
January to March 2023
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB Audit type: Unaudited
Item Q1 2023 Q1 2022
I. Gross revenue 1,621,514,039.25 1,254,357,336.99
Including: Operating revenue 1,621,514,039.25 1,254,357,336.99
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2023 Q1 Report
Interest income
Earned premium
Fee and commission income
II. Total operating expenses 1,337,795,468.79 1,039,831,788.21
Including: Operating expenses 485,918,295.64 406,738,634.99
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 17,803,764.91 13,048,639.06
Sales expenses 700,922,277.91 531,525,291.08
Administrative expenses 95,175,298.34 64,720,039.25
R&D expenses 51,874,237.80 29,984,297.07
Financial expenses -13,898,405.81 -6,185,113.24
Including: Interest expenses 2,779,348.01 3,290,554.12
Interest income 16,622,896.43 11,156,538.55
Add: Other income 20,608,636.91 14,423,871.50
Investment income ("-" for losses) -1,024,160.51 -2,057,259.04
Including: Income from investment in
-1,000,000.00 -2,057,259.04
associates and joint ventures
Gains from derecognition of financial
assets measured at amortized cost
Exchange gains ("-" for losses)
Net exposure hedging gains ("-" for losses)
Income from changes in fair value ("-" for
losses)
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2023 Q1 Report
Credit impairment losses ("-" for losses) 4,839,153.07 -3,472,766.96
Asset impairment losses ("-" for losses) -25,945,268.31 -17,017,524.51
Gains from disposal of assets ("-" for losses)
III. Operating profit ("-" for losses) 282,196,931.62 206,401,869.77
Add: Non-Operating revenue 603,802.94 414,527.62
Less: Non-operating expenses 2,431,554.13 661,221.54
IV. Total profit ("-" for total losses) 280,369,180.43 206,155,175.85
Less: income tax expenses 58,204,674.92 36,756,456.24
V. Net profit ("-" for net losses) 222,164,505.51 169,398,719.61
(I) Classification by continuity as a going concern
1. Net profit from continuing as a going concern
222,164,505.51 169,398,719.61
("-" 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 of the
208,032,832.00 158,420,986.20
parent company ("-" for net losses)
2. Minority interest income ("-" for net losses) 14,131,673.51 10,977,733.41
VI. Other comprehensive income, net of tax 304,058.24 -107,248.66
(I) Other comprehensive income, net of tax
304,058.24 -107,248.66
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
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2023 Q1 Report
(4) Changes in the fair value of the Company's own
credit risks
2. Other comprehensive income that will be
304,058.24 -107,248.66
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 other debt
investments
(5) Cash flow hedging reserve
(6) Differences in translation of foreign currency
304,058.24 -107,248.66
financial statements
(7) Others
(II) Other comprehensive income, net of tax
attributable to minority shareholders
VII. Total comprehensive income 222,468,563.75 169,291,470.95
(I) Total comprehensive income attributable to
208,336,890.24 158,313,737.54
owners of the parent company
(II) Total comprehensive income attributable to
14,131,673.51 10,977,733.41
minority shareholders
VIII. EPS:
(I) Basic EPS (RMB per share) 0.73 0.79
(II) Diluted EPS (RMB per share) 0.72 0.78
In the case of merger under common control in the current period, the net profit realized by the merged
party before the merger was RMB0.00, and the net profit realized by the merged party for the previous
period was RMB0.00.
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2023 Q1 Report
Legal representative: HOU Person in charge of accounting: Head of the accounting
Juncheng WANG Li organization: WANG Li
Consolidated Cash Flow Statement
January to March 2023
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB Audit type: Unaudited
Item Q1 2023 Q1 2022
I. Cash flows from operating activities:
Cash received from sales of goods and
1,837,791,496.56 1,334,925,554.96
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
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
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2023 Q1 Report
Net cash received from vicariously
traded securities
Tax refund 47,205.42
Other cash received related to
62,019,541.04 38,518,490.99
operating activities
Subtotal of cash inflows from
1,899,811,037.60 1,373,491,251.37
operating activities
Cash received from purchasing goods
313,127,083.34 364,344,313.82
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 208,007,778.64 140,426,002.53
Cash paid for taxes and surcharges 199,179,137.21 116,848,805.19
Cash paid for other operating activities 769,723,077.97 409,765,074.14
Subtotal of cash outflows from
1,490,037,077.16 1,031,384,195.68
operating activities
Net cash flow from operating
409,773,960.44 342,107,055.69
activities
II. Cash flows from investing activities:
Cash back on investments
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2023 Q1 Report
Cash received from investment income
Net cash received from the disposal of
fixed assets, intangible assets and other 338,439.51
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
338,439.51
investing activities
Cash paid for the acquisition and
construction of fixed assets, intangible 42,428,654.52 35,510,518.32
assets and other long-term assets
Cash paid for investments 6,818,181.82 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
49,246,836.34 39,739,418.32
investing activities
Net cash flows from investing
-48,908,396.83 -39,739,418.32
activities
III. Cash flows from financing activities:
Cash received from attraction of
250,000.00
investments
Including: Cash received from
attraction of investments from minority 250,000.00
shareholders
Cash received from borrowings 100,000,000.00 100,000,000.00
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2023 Q1 Report
Cash received for other fundraising
activities
Subtotal of cash inflows from
100,000,000.00 100,250,000.00
financing activities
Cash paid for debt repayments 100,000,000.00 100,000,000.00
Cash paid for distribution of dividends
1,302,222.22 1,898,750.01
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
activities
Subtotal of cash outflows from
101,302,222.22 146,898,750.01
financing activities
Net cash flows from financing
-1,302,222.22 -46,648,750.01
activities
IV. Effect of changes in exchange rates
304,058.24 -107,248.66
on cash and cash equivalents
V. Net increase in cash and cash
359,867,399.63 255,611,638.70
equivalents
Add: Beginning balance of cash and
3,125,333,085.05 2,378,334,768.09
cash equivalents
VI. Ending balance of cash and cash
3,485,200,484.68 2,633,946,406.79
equivalents
Legal representative: HOU Person in charge of Head of the accounting
Juncheng accounting: WANG Li organization: WANG Li
(III) The initial implementation of the new accounting standards from 2023 by adjusting the financial
statements at the beginning of the year of the initial implementation
"□ Applicable" "√ Not applicable"
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2023 Q1 Report
End of the announcement.
Board of Directors of Proya Cosmetics Co., Ltd
April 21, 2023
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