Financial Performance - The company's operating revenue for 2018 was CNY 7,137,947,377.14, representing a 10.01% increase compared to CNY 6,488,246,212.14 in 2017[21] - The net profit attributable to shareholders of the listed company was CNY 540,379,997.40, a 38.63% increase from CNY 389,801,890.38 in the previous year[21] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 456,760,277.01, up 37.82% from CNY 331,428,864.65 in 2017[21] - The basic earnings per share for 2018 was CNY 0.81, a 39.66% increase from CNY 0.58 in 2017[22] - The weighted average return on net assets increased to 9.68%, up 2.52 percentage points from 7.16% in the previous year[25] - The net cash flow from operating activities was CNY 894,674,627.73, showing a slight increase of 0.18% compared to CNY 893,076,418.96 in 2017[21] - The total assets at the end of 2018 were CNY 10,160,072,259.23, reflecting a 5.79% increase from CNY 9,603,959,103.00 in 2017[21] - The net assets attributable to shareholders of the listed company were CNY 5,813,061,293.81, an 8.12% increase from CNY 5,376,551,846.61 in 2017[21] Dividend Policy - The company plans to distribute a cash dividend of CNY 2.50 per 10 shares to shareholders[6] - In 2018, the company distributed a cash dividend of RMB 2.50 per 10 shares, totaling RMB 167,812,115.25, which accounted for 31.05% of the net profit attributable to ordinary shareholders[133] - The company has a cash dividend policy that mandates a minimum of 30% of the net profit attributable to shareholders be distributed as cash dividends each year[132] Revenue and Profit Growth - The company achieved a total revenue of 7.138 billion RMB in 2018, representing a year-on-year growth of 10.01%[41] - Operating profit reached 646 million RMB, an increase of 34.01% year-on-year[41] - Net profit attributable to shareholders was 540 million RMB, up 38.63% compared to the previous year[41] - The net profit after deducting non-recurring gains and losses was 457 million RMB, reflecting a growth of 37.82%[41] Market and Competitive Position - The cosmetics industry saw a year-on-year growth of 9.6% in retail sales, indicating a favorable market environment for the company's products[36] - The company has a strong competitive edge with a comprehensive R&D system, brand assets, channel coverage, and production capabilities[39] - The retail sales of Baicaoji's solid essence mask exceeded 3 million pieces within 10 months of its launch[42] - The company expanded its offline distribution network to approximately 200,000 supermarkets and nearly 90,000 rural outlets[47] Research and Development - The company initiated 39 research projects in 2018, with 15 new projects added, resulting in 52 patent applications[83] - The company established a joint laboratory with Fudan University to enhance research in skin health and product safety[46] - The total R&D investment was ¥167,781,711.06, representing 2.35% of total revenue, with 145 R&D personnel, making up 4.14% of the total workforce[68] Operational Efficiency - The company has implemented advanced MES manufacturing management systems to enhance production process automation and digital management[87] - The new factory's production capacity and supply assurance capabilities were significantly enhanced, achieving digital and automated operations[50] - The company is focusing on expanding its product lines, particularly in creams and liquid washes, to improve production efficiency and response speed[90] Social Responsibility - In 2018, the company engaged in targeted poverty alleviation projects, contributing 402 million RMB in funds and 44 million RMB in material donations[174] - The company supported 1,300 impoverished students through educational assistance, with a total investment of 5 million RMB specifically for student aid[174] - The company has committed to ongoing social responsibility efforts, particularly in education and health sectors in targeted poverty-stricken regions[172] Environmental Initiatives - The new factory has adopted green building standards and received the LEED Gold certification from the U.S. Green Building Council[180] - The company aims to reduce pollutant emissions through clean production, water recycling, and solar energy projects[180] - The company emphasizes the establishment of a green supply chain, achieving LEED Gold certification for new factory projects, and reducing environmental impact through advanced production equipment and eco-friendly materials[104] Financial Investments - The company’s total investment in financial assets reached approximately RMB 2.31 billion, with a fair value change of RMB 21.65 million during the reporting period[110] - The company has invested a total of 1.2 billion RMB in various financial products, achieving an average annual return rate of 4.5%[167] - The actual returns from financial investments amounted to approximately 30 million RMB, with all funds successfully recovered[167] Future Outlook - The company aims for a double-digit revenue growth in 2019, based on its brand growth strategies and market conditions[122] - The company intends to leverage AI, AR, and VR technologies to enhance consumer interaction and improve operational efficiency[121] - The company is exploring new market expansion opportunities and potential mergers and acquisitions to enhance growth[167]

Financial Performance - Net profit attributable to shareholders increased by 37.98% to CNY 453,796,442.83 for the period from January to September[6] - Operating revenue rose by 9.50% to CNY 5,420,192,240.88 for the same period[6] - The weighted average return on equity increased by 2.02 percentage points to 8.10%[7] - Basic earnings per share increased by 38.78% to CNY 0.68[7] - Total revenue for the first nine months reached ¥5,420,192,240.88, an increase of 9.5% compared to ¥4,949,806,889.20 in the same period last year[25] - The company's net profit for the first nine months increased to ¥4,415,800,221.77, compared to ¥4,097,216,171.58 in the previous year, reflecting a growth of 7.8%[23] - The company's total revenue for the first nine months of 2018 was CNY 2.44 billion, an increase of 18.2% from CNY 2.07 billion in the same period of 2017[29] - The company's net profit for Q3 2018 reached CNY 136.97 million, compared to CNY 104.02 million in the same period last year, marking a year-over-year increase of 31.8%[26] Assets and Liabilities - Total assets increased by 10.46% to CNY 10,608,199,403.95 compared to the end of the previous year[6] - The company's total assets reached CNY 10,608,199,403.95, compared to CNY 9,603,959,103.00 at the beginning of the year[20] - The total liabilities increased to CNY 4,788,543,478.77 from CNY 4,227,407,256.39, indicating a rise in financial obligations[20] - Total current assets increased to CNY 5,060,567,224.19, up from CNY 4,369,991,002.15 at the beginning of the year[19] - Total liabilities increased to ¥2,057,727,679.81 from ¥1,805,481,492.71, reflecting a growth of 13.9%[23] Cash Flow - Net cash flow from operating activities decreased slightly by 0.95% to CNY 717,437,484.29[6] - Cash received from investment activities decreased by 38.28% to CNY 1,850,000,000, primarily due to a reduction in bank wealth management and time deposits[15] - Cash paid for the acquisition of fixed assets and intangible assets decreased by 34.58% to CNY 282,293,549, reflecting a reduction in payments for the Qingpu factory project[15] - The cash inflow from operating activities for the first nine months reached ¥5,900,107,297.44, an increase of 11% compared to ¥5,313,596,604.28 in the previous year[32] - The net cash flow from investment activities was -¥564,433,273.40, improving from -¥841,926,633.97 year-on-year[33] Shareholder Information - The total number of shareholders reached 23,673 at the end of the reporting period[12] - The largest shareholder, Shanghai Jahwa Group Co., Ltd., holds 47.25% of the shares[12] - The company's cash dividends paid increased by 51% to CNY 163,051,524.22, reflecting a higher distribution of profits compared to the previous year[15] - The total equity attributable to shareholders rose to CNY 5,819,655,925.18 from CNY 5,376,551,846.61, indicating growth in shareholder value[20] Inventory and Expenses - Inventory rose by 39.30% to CNY 1,045,304,760.20, driven by increased stock for online sales and expanded offline distribution[14] - The company's inventory increased significantly to CNY 1,045,304,760.20, up from CNY 750,415,795.03 at the beginning of the year[17] - Total operating costs for the first nine months were ¥5,128,432,440.15, up 11.2% from ¥4,613,958,012.48 year-on-year[25] - The company reported a significant increase in sales expenses, which reached ¥2,268,375,535.30 for the first nine months, compared to ¥2,095,929,761.27 in the previous year, an increase of 8.2%[25] Investment and Development - Financial assets available for sale increased by 37.18% to CNY 752,575,806.45, attributed to higher investment costs and fair value increases in Ping An Consumer and Technology Fund[14] - Investment income rose by 119.21% to CNY 94,451,323.90, driven by increased earnings from long-term equity investments accounted for using the equity method[14] - Development expenditures rose by 69.94% to CNY 19,226,664.73, reflecting increased R&D spending for Mayborn Group's maternal and infant products[14] - Research and development expenses for the first nine months were ¥95,053,797.87, down from ¥103,304,262.95, a decrease of 7.1%[25] Other Financial Metrics - Other income increased by 350.59% to CNY 179,398,649.45, mainly from the relocation of the former Qingpu central factory[14] - The fair value change loss amounted to CNY -2,857,566, a significant decrease compared to the previous year, primarily due to the fair value change of stock appreciation rights from 2014[15] - The asset disposal loss was CNY -38,252,348, mainly due to the disposal of assets related to the relocation of the Qingpu Central Factory[15]

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 3,665,189,282.51, representing a 9.29% increase compared to CNY 3,353,588,005.45 in the same period last year[19]. - The net profit attributable to shareholders of the listed company reached CNY 316,823,032.86, a significant increase of 40.89% from CNY 224,873,588.27 in the previous year[19]. - The basic earnings per share for the first half of 2018 was CNY 0.47, up 38.24% from CNY 0.34 in the same period last year[20]. - The total assets of the company increased by 7.29% to CNY 10,303,615,101.28 compared to CNY 9,603,959,103.00 at the end of the previous year[19]. - The net cash flow from operating activities was CNY 504,628,792.54, showing a decrease of 15.95% from CNY 600,377,683.50 in the same period last year[19]. - The company's net assets attributable to shareholders increased by 4.47% to CNY 5,616,764,912.02 from CNY 5,376,551,846.61 at the end of the previous year[19]. - The weighted average return on net assets increased by 1.54 percentage points to 5.72% compared to 4.18% in the same period last year[20]. - The company reported a total comprehensive income of ¥361,121,503.87, up from ¥220,964,167.35, reflecting a growth of 63.4%[109]. Market Position and Brand Performance - The company’s brand "Liushen" held a market share of 75.3% in the flower dew category, an increase of 2.5 percentage points year-on-year[25]. - The brand "Meijiajing" led the mass hand cream category with a market share of 12.5%[25]. - The emerging brand "Qichu" ranked second in the baby cream and baby shower gel markets with market shares of 12.9% and 5.9%, respectively[26]. - The Baicaoji brand launched new product lines, including the solid essence mask, which sold over 2 million units within six months[39]. - The Gofu brand generated a topic volume of 250 million through collaborations with KOLs and the launch of the new oil control series[40]. - The Yuze brand established a joint laboratory with Ruijin Hospital, focusing on skin health research and launching a new third-generation skin barrier repair series[44]. - The Tangmeixing brand expanded its offline presence to 2,447 mother and baby store locations, significantly increasing its market reach[46]. - The Liu Shen brand introduced new customized products and engaged in a summer marketing campaign that integrated traditional and digital media[37]. - The Qichu brand launched the "Chuya Qingcui" series and initiated a charity project to support underprivileged children's choirs[42]. - The Meijiajing brand continued to solidify its position in the hand cream market while launching a new lip care series[41]. - The Jia'an brand focused on promoting its upgraded air conditioning cleaning agent to enhance brand recognition in the home cleaning sector[43]. Strategic Initiatives and Developments - The company launched over 300 new SKUs during the reporting period, including innovative products utilizing new drying and fermentation technologies[32]. - The digital marketing platform "Huameijia" attracted over 250,000 members within four months, with an average spending of over 600 CNY per member[35]. - The company’s acquisition of Cayman A2, Ltd. generated sales revenue of 758 million CNY, a year-on-year growth of approximately 5%[30]. - The company’s strategic focus includes enhancing brand premiumization, channel innovation, and product development to improve operational efficiency[31]. - The company has established a long-term cooperation intention with Church & Dwight Co., Inc. to become the exclusive distributor for several personal care products in mainland China[55]. Financial Position and Assets - Cash and cash equivalents decreased by 8.86% to ¥1,213,085,694.18, accounting for 11.77% of total assets[60]. - Accounts receivable increased by 15.59% to ¥1,071,323,495.49, representing 10.40% of total assets, attributed to seasonal factors[60]. - Inventory rose by 32.51% to ¥994,403,572.29, making up 9.65% of total assets, to ensure sales in the second half of the year[60]. - Fixed assets surged by 196.62% to ¥881,152,386.41, representing 8.55% of total assets, due to the completion of the Qingpu factory project[61]. - The total current assets amount to 4,871,790,816.37 RMB, an increase from 4,369,991,002.15 RMB at the beginning of the period[100]. - The total non-current assets are valued at 2,219,954,733.93 RMB, up from 1,774,610,000.00 RMB at the beginning of the period[100]. - The company reported an increase in accounts receivable to 1,071,323,495.49 RMB from 926,859,205.89 RMB, reflecting a growth of about 15.6%[100]. Challenges and Risks - The company faces intense market competition from domestic and foreign brands in both online and offline channels, particularly in the natural and plant-based product sectors[69]. - The company is experiencing challenges due to changes in channel structures, necessitating adjustments to its channel layout to strengthen existing advantages and develop new channels[69]. - The company is at risk of talent loss in a highly competitive industry, despite efforts to implement effective compensation and incentive policies[69]. Corporate Governance and Shareholder Information - The company has not proposed any profit distribution or capital reserve increase plans for the first half of 2018[71]. - The total number of ordinary shareholders reached 22,091 by the end of the reporting period[93]. - The largest shareholder, Shanghai Jahwa United Co., Ltd., holds 317,132,527 shares, representing 47.21% of the total shares[95]. - Shanghai Jiushi Group Co., Ltd. increased its holdings by 1,854,167 shares, totaling 30,622,898 shares, which is 4.56% of the total[95]. Accounting Policies and Compliance - The financial statements are prepared based on the "Enterprise Accounting Standards" and relevant regulations, ensuring compliance and accuracy[132]. - The company operates on a going concern basis, indicating stability in its operations[133]. - The accounting policies include methods for impairment of available-for-sale financial assets and provisions for bad debts, among others[134]. - The company recognizes goodwill in business combinations when the fair value of the consideration exceeds the fair value of identifiable net assets acquired[141].

Financial Performance - Net profit attributable to shareholders increased by 35.92% to CNY 150,679,439.32 year-on-year[6] - Operating revenue rose by 10.33% to CNY 1,860,297,290.99 compared to the same period last year[6] - Basic earnings per share increased by 29.41% to CNY 0.22 per share compared to the previous year[6] - The weighted average return on equity increased by 0.66 percentage points to 2.75%[6] - The net profit after deducting non-recurring gains and losses increased by 65.99% to CNY 150,515,950.88[6] - Total revenue for Q1 2018 was CNY 1,860,297,290.99, an increase of 10.3% compared to CNY 1,686,166,943.51 in the same period last year[25] - Net profit for Q1 2018 reached CNY 201,921,294.93, representing a 57.3% increase from CNY 128,368,495.32 in the same period last year[29] - Operating profit for Q1 2018 was CNY 230,684,716.24, up 54.1% from CNY 149,678,040.50 in Q1 2017[29] - Investment income for Q1 2018 was CNY 47,505,999.66, significantly higher than CNY 8,148,061.78 in the previous year[28] - The company reported a total comprehensive income of CNY 267,248,979.80 for Q1 2018, compared to CNY 131,775,229.86 in Q1 2017, marking a 102.4% increase[29] Assets and Liabilities - Total assets increased by 4.50% to CNY 10,035,830,516.14 compared to the end of the previous year[6] - Non-current assets totaled CNY 5,517,300,374.44, up from CNY 5,233,968,100.85, reflecting a growth of 5.4%[19] - Total current assets amounted to ¥4,518,530,141.70, up from ¥4,369,991,002.15 at the beginning of the year[17] - Current liabilities increased to CNY 2,719,755,486.74 from CNY 2,508,072,247.11, representing a rise of 8.4%[19] - Total liabilities amounted to CNY 4,434,074,669.01, up from CNY 4,227,407,256.39, indicating a growth of 4.9%[19] - Owner's equity totaled CNY 5,601,755,847.13, an increase from CNY 5,376,551,846.61, reflecting a growth of 4.2%[19] Cash Flow - Net cash flow from operating activities increased by 22.26% to CNY 271,745,917.26 year-on-year[6] - Cash flow from operating activities was CNY 1,947,891,536.12, an increase from CNY 1,768,947,145.67 in Q1 2017[31] - The company’s total cash inflow from operating activities was CNY 934,173,145.38, while total cash outflow was CNY 696,264,111.08, resulting in a net cash flow of CNY 237,909,034.30[35] - Operating cash inflow for the first quarter was CNY 934,173,145.38, an increase of 21% compared to CNY 773,065,375.91 in the previous period[35] - Net cash flow from operating activities was CNY 237,909,034.30, up 49.5% from CNY 159,007,838.11 in the same period last year[35] - Cash outflow from investing activities totaled CNY 1,143,542,545.13, compared to CNY 750,447,092.61 in the previous period, indicating a significant increase in investment[36] - Net cash flow from investing activities was -CNY 298,737,004.35, worsening from -CNY 106,187,763.00 in the previous year[36] - Cash and cash equivalents at the end of the period were CNY 366,373,814.38, down from CNY 1,308,721,205.68 at the end of the previous period[36] Shareholder Information - The number of shareholders reached 21,512 at the end of the reporting period[10] - The largest shareholder, Shanghai Jahwa United Co., Ltd., holds 47.21% of the shares[10] - The total shareholding ratio of China Ping An Insurance (Group) Co., Ltd. reached 52.17% by the end of the reporting period[12] Other Financial Metrics - The company reported non-recurring gains and losses totaling CNY 163,488.44[9] - Prepayments increased by 37.31%, from ¥63,342,520.41 to ¥86,977,353.98, indicating a rise in prepaid goods and advertising fees[13] - Available-for-sale financial assets rose by 40.79%, from ¥548,610,000.00 to ¥772,411,162.09, reflecting increased investment costs and fair value[13] - Short-term borrowings decreased by 100%, from ¥18,522,735.68 to ¥0.00, due to repayment by Gro-Group Holdings Ltd[13] - Tax payable increased by 72.00%, from ¥159,427,541.59 to ¥274,211,456.95, driven by higher VAT and corporate income tax[13] - Investment income surged by 268.27%, from ¥11,907,521.64 to ¥43,851,805.72, primarily due to increased long-term equity investment income[14] - Cash received from investment activities increased by 38.10%, from ¥601,000,000.00 to ¥830,000,000.00, reflecting higher bank wealth management redemptions[14] - Financial expenses increased by 176.21%, from ¥7,518,925.94 to ¥20,768,098.44, mainly due to reduced interest income from bank deposits[14] - The company repurchased and canceled restricted stock, leading to a 59.65% decrease in dividends payable[13]

Financial Performance - Shanghai Jahwa's operating revenue for 2017 was approximately RMB 6.49 billion, an increase of 8.82% compared to RMB 5.96 billion in 2016[28]. - Net profit attributable to shareholders for 2017 reached approximately RMB 389.80 million, representing a significant increase of 93.95% from RMB 200.98 million in 2016[28]. - The net cash flow from operating activities for 2017 was approximately RMB 861.77 million, a substantial increase of 670.24% compared to RMB 111.88 million in 2016[28]. - Basic earnings per share for 2017 were RMB 0.58, up 93.33% from RMB 0.30 in 2016[29]. - The weighted average return on equity for 2017 was 7.16%, an increase of 3.55 percentage points from 3.61% in 2016[29]. - The total assets at the end of 2017 were approximately RMB 9.60 billion, a decrease of 10.55% from RMB 10.74 billion at the end of 2016[28]. - The net profit after deducting non-recurring gains and losses for 2017 was approximately RMB 331.43 million, an increase of 61.69% from RMB 204.98 million in 2016[28]. - The company reported non-recurring gains of approximately RMB 58.37 million for 2017, compared to a loss of RMB 3.99 million in 2016[35]. - The company’s net assets attributable to shareholders at the end of 2017 were approximately RMB 5.38 billion, an increase of 2.19% from RMB 5.26 billion at the end of 2016[28]. - The company’s cash flow from operating activities reached 862 million RMB, a significant increase of 670.24% year-on-year[54]. Acquisitions and Investments - The company completed a merger on December 27, 2017, acquiring 100% equity of Cayman A2, Ltd., which impacted the financial data for 2016[34]. - The company completed the acquisition of Cayman A2, Ltd., which generated a revenue of 1.447 billion RMB in 2017, closely aligning with the expected revenue of 1.463 billion RMB[53]. - The company completed the acquisition of 100% equity in Cayman A2, Ltd. from its controlling shareholder, enhancing its investment portfolio[138]. - The company has a total of 400 million RMB in non-principal floating bank investments with a return rate of 3.00%[195]. - The company has engaged in various entrusted financial management projects, with a total amount of 300 million RMB at a return rate of 5.10%[195]. Research and Development - Shanghai Jahwa's R&D investment continues to grow, with new product launches such as the Baicaoji Taiji series and Meijiajing hand cream series receiving positive feedback[8]. - The company conducted over 39 research projects in 2017, resulting in 27 product development projects and the filing of 33 patents, including 15 invention patents[113]. - Research and development expenses totaled 161,149,882.26 CNY, representing 2.48% of total operating revenue, with 5.12% of R&D costs capitalized[96]. - R&D expenditure increased by 27.72% to ¥161,149,882.26 from ¥126,171,803.62[82]. Brand Development and Marketing - The company is committed to enhancing brand building through independent R&D and mergers and acquisitions[8]. - Baicaoji brand repositioned to emphasize "balance theory and the beauty of Chinese culture," launching new high-end products and increasing marketing efforts, reaching nearly 850 million impressions through various media channels[61]. - Liushen brand focused on summer products, signed new spokesperson Hua Chenyu, and utilized integrated marketing strategies to enhance brand appeal among younger consumers, resulting in significant sales growth during peak seasons[63]. - The company aims to enhance its digital marketing efforts and increase the proportion of digital media in its marketing strategy to attract younger consumers[60]. - The company will continue to leverage celebrity endorsements and integrated marketing strategies to drive brand awareness and consumer loyalty across its various product lines[67]. Production and Operations - The company is transitioning from a traditional manufacturing enterprise to an advanced manufacturing enterprise, embracing digital management and big data[10]. - The new factory, set to commence operations this year, will feature advanced automated production lines, enhancing production management to be digital, transparent, and standardized[10]. - The company aims to develop a comprehensive ecosystem by integrating various sales channels, including department stores, supermarkets, e-commerce, and specialty stores[10]. - The company’s production processes adhere to GMPC and ISO9001 standards, ensuring high-quality product output through rigorous quality control measures[116]. - The company operates five self-owned factories with a total designed capacity of 1.2 billion pieces per year, with utilization rates of 80% for the central factory and 75% for the Hainan factory[117]. Market Position and Growth - The company’s market position remains strong, with its major brands leading in their respective segments, and the personal care market showing growth in emerging channels[107]. - Six God brand holds a leading market share in multiple categories, with a 73.5% share in the flower dew category, a 7.1% share in the shower gel category, and a 4.6% share in the soap category for 2017, showing year-on-year increases[108]. - The emerging brand Qichu has captured significant market positions in the baby skincare market, with 11.8% market share in baby cream and 4.7% in baby bath products, reflecting increases of 3.6 percentage points and 2.1 percentage points respectively[109]. - The newly acquired Tommee Tippee brand holds a 40% market share in the UK and approximately 38% in Australia, with a 4% share in North America, indicating substantial growth potential in these regions[109]. Corporate Social Responsibility - The company has actively engaged in poverty alleviation efforts as part of its corporate social responsibility initiatives in 2017[199]. - The company donated 200 love backpacks to schools in Guazhou County, Gansu Province[200]. - The company initiated the "Shanghai Jahwa Public Welfare Assistance Action" to provide one-on-one support for students at a hope primary school in Tongwei County, Gansu Province[200]. - Following the 7.0 magnitude earthquake in Jiuzhaigou County, Sichuan Province, the company donated 50,000 bottles of Liushen Classic Floral Water, totaling 670,000 yuan[200]. - The company established the "Shanghai Jahwa Special Fund" under the Shanghai Charity Foundation for public welfare projects including elderly care, youth support, disability assistance, and poverty alleviation[200]. Challenges and Future Outlook - The company faces challenges such as slowing consumer spending and intensified competition from foreign brands and e-commerce[151]. - In 2018, the company aims for a double-digit revenue growth compared to the previous year, driven by brand growth strategies and innovation in channels[155]. - The company plans to enhance its R&D capabilities and expand its new product offerings to drive future growth[155]. - The company recognizes the need to adapt to changes in channel structures, with a focus on both offline specialty stores and online sales growth[158].

2017 年第三季度报告 公司代码：600315 公司简称：上海家化 上海家化联合股份有限公司 2017 年第三季度报告 1.3 公司负责人张东方、主管会计工作负责人韩敏及会计机构负责人（会计主管人员）邬鹤萍保 证季度报告中财务报表的真实、准确、完整。 1.4 本公司第三季度报告未经审计。 二、 公司基本情况 1 / 20 | 目录 | | --- | | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 6 | | 四、 | 附录 | 9 | 2017 年第三季度报告 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 未出席董事情况 | 未出席董事姓名 | 未出席董事职务 | 未出席原因的说明 | 被委托人姓名 | | --- | --- | --- | --- | | 宋成立 | 董事 | 工作原因 | 刘东 | 4 / 20 2.1 主要财务数据 单位：元 币种：人民币 | | 本报 ...

Financial Performance - The company's operating revenue for the first half of 2017 was ¥2,651,881,094.07, a decrease of 13.50% compared to the same period last year[17]. - The net profit attributable to shareholders for the first half of 2017 was ¥216,242,281.83, down 41.93% year-on-year[17]. - The basic earnings per share for the first half of 2017 was ¥0.32, a decrease of 41.82% compared to ¥0.55 in the same period last year[19]. - The company reported a net profit of ¥238,032,969.06 after deducting non-recurring gains and losses, down 34.38% from the previous year[17]. - The company’s revenue for the reporting period was approximately ¥2.65 billion, a decrease of 13.50% compared to ¥3.07 billion in the same period last year[55]. - The net profit for the first half of 2017 was CNY 216,242,281.83, a decline of 42.1% from CNY 372,351,763.14 in the same period last year[107]. - The total comprehensive income for the first half of 2017 was CNY 180,686,616.17, down from CNY 456,722,085.59 in the previous year, indicating a decline of 60.5%[110]. Cash Flow and Investments - The net cash flow from operating activities increased to ¥497,882,274.83, a significant improvement from a negative cash flow of ¥33,919,603.16 in the previous year, representing a 1,567.83% increase[17]. - The company's cash flow from operating activities for the first half of 2017 was RMB 498 million, a year-on-year increase of 64% after excluding the impact of tax payments related to the Tianjiang equity transfer[31]. - The net cash flow from investment activities was -205,618,381.94 RMB, compared to -313,358,077.86 RMB in the previous period, indicating an improvement of approximately 34.4%[116]. - The cash outflow for investment activities totaled 2,218,031,131.98 RMB, an increase from 2,055,817,581.85 RMB, representing a rise of approximately 7.9%[116]. Assets and Liabilities - The company's total assets reached ¥8,071,840,947.03, reflecting a 5.76% increase from the end of the previous year[17]. - The company's inventory increased by 7.27% to approximately ¥637 million, reflecting seasonal factors[58]. - Total current liabilities increased to ¥2,092,415,201.76 from ¥1,869,190,739.39, representing a rise of about 11.97%[100]. - Total liabilities reached ¥2,647,287,834.64, up from ¥2,368,321,448.24, indicating an increase of approximately 11.76%[100]. Market Performance and Brand Positioning - The market share of the brand "Liushen" in the flower dew category reached 72.9% in the first half of 2017, an increase of 0.1 percentage points year-on-year[27]. - The brand "Meijiajing" led the mass hand cream category with a market share of 12.1% in the first half of 2017[28]. - The emerging brand "Qichu" held significant positions in the baby skincare market, ranking second in both baby cream and baby bath products with market shares of 10.5% and 4.6% respectively[28]. Expenses and Cost Management - Marketing expenses increased by 17.02% year-on-year, primarily due to enhanced brand promotion efforts[33]. - Administrative expenses rose by 9.36% year-on-year, with office expenses increasing by 121.5% due to new workplace costs[35]. - The company is focusing on cost control measures to improve profitability amid declining revenues[106]. Research and Development - The company's research project expenses increased by 24.05% year-on-year, mainly for product testing and consumer research[35]. - The company implemented a comprehensive R&D strategy to improve product development efficiency and quality, resulting in successful launches of several new products[37]. Corporate Governance and Compliance - The company did not propose any profit distribution or capital reserve transfer to share capital during the reporting period[4]. - The integrity status of the company and its controlling shareholders remained good during the reporting period[72]. - The company has not disclosed any significant changes in accounting policies or estimates compared to the previous accounting period[81]. Shareholder Information - The total number of ordinary shareholders reached 31,108 by the end of the reporting period[87]. - The total number of shares outstanding is 673,416,467, with 99.65% being unrestricted shares[83]. - The largest shareholder, Shanghai Jahwa (Group) Co., Ltd., did not change its holdings during the reporting period[89]. Strategic Initiatives - The company completed the transition of its two major online sales platforms, JD.com and Tmall Supermarket, from an agency model to a self-operated model, laying a foundation for future growth[38]. - The company is enhancing its marketing strategies by integrating entertainment and social media to boost brand awareness and sales, particularly targeting younger demographics[40]. - The company aims to transform the "Qichu" brand from a regional player to a national brand by leveraging innovative marketing strategies and expanding its presence in emerging channels[44].

Financial Performance - In Q1 2017, the company achieved operating revenue of RMB 1.34 billion, a decrease of 13.04% compared to the same period last year[5] - The net profit attributable to shareholders was RMB 90.68 million, down 26.59% year-on-year[5] - After excluding the impact of the terminated strategic sales contract with Kao, the company reported a revenue of RMB 1.34 billion for Q1 2017, representing a 14.54% increase year-on-year[7] - The net profit attributable to shareholders, excluding the same impact, was RMB 108.35 million, an increase of 1.79% compared to the previous year[7] - Basic and diluted earnings per share were both RMB 0.16, a decrease of 15.79% compared to the same period last year[5] - Total operating revenue for Q1 2017 was ¥1,340,165,773.92, a decrease of 13.06% compared to ¥1,541,097,064.82 in the same period last year[29] - Net profit for Q1 2017 was ¥108,279,600.36, a decline of 15.04% from ¥127,428,959.75 in Q1 2016[30] - Earnings per share for Q1 2017 were ¥0.16, compared to ¥0.19 in the same period last year[30] Cash Flow and Assets - The net cash flow from operating activities for the period was RMB 176.58 million, an increase of 80.34% year-on-year[5] - Cash and cash equivalents decreased by 48.68% to CNY 1,768,823,529.32 from CNY 3,446,894,441.04, mainly due to an increase in available-for-sale financial assets[15] - The cash flow from operating activities generated a net amount of ¥176.58 million, an increase of 80.06% compared to ¥97.92 million in the previous period[34] - The cash and cash equivalents at the end of the period amounted to ¥1.77 billion, a decrease from ¥3.45 billion at the end of the previous period[34] - The beginning balance of cash and cash equivalents was $1,256,298,923.08, down from $2,809,678,489.90 in the prior year[38] - The ending balance of cash and cash equivalents stood at $1,308,721,205.68, compared to $2,547,275,426.03 in the previous year[38] Operational Efficiency - The company optimized its organizational structure and shifted its marketing system from channel-driven to brand-driven, enhancing operational efficiency[8] - Inventory and accounts receivable balances significantly decreased, indicating improved operational quality[8] - Accounts receivable decreased by 45.27% to CNY 16,747,976.47 from CNY 30,603,534.23 due to increased bill endorsements[13] - Operating costs decreased by 40.07% to CNY 370,371,507.21 from CNY 617,981,098.02, primarily due to the termination of the Kao business[14] - The company’s management indicated a focus on improving operational efficiency and exploring new market opportunities moving forward[32] Investments and Income - Investment income increased by 77.39% to CNY 11,907,521.64 from CNY 6,712,552.88, driven by higher returns from financial products[14] - The company reported a gross profit margin of approximately 7.5% for Q1 2017, down from 10.0% in Q1 2016[29] Tax and Liabilities - The company's tax payable increased by 31.7 million, a growth rate of 47.75%, reaching 98.07 million by March 31, 2017, compared to 66.38 million at the beginning of the year[19] - The main reason for the increase in tax payable was the rise in unpaid value-added tax, which grew by 31.45 million, attributed to seasonal sales factors[19] - The company's total liabilities were 2.44 billion, an increase from 2.37 billion at the beginning of the year[25] Assets Overview - Total assets at the end of the reporting period were RMB 7.81 billion, up 2.38% from the end of the previous year[5] - As of March 31, 2017, the company's total assets amounted to 7.81 billion, an increase from 7.63 billion at the beginning of the year[25] - The company's current assets totaled 5.53 billion, up from 5.41 billion at the beginning of the year[23] - The company's equity attributable to shareholders reached 5.38 billion, up from 5.26 billion at the beginning of the year[25]

Financial Performance - In 2016, the company's operating revenue was approximately CNY 5.32 billion, a decrease of 8.98% compared to CNY 5.85 billion in 2015[17]. - The net profit attributable to shareholders was CNY 216 million, down 90.23% from CNY 2.21 billion in 2015[17]. - The basic earnings per share (EPS) dropped to CNY 0.32, a decline of 90.33% from CNY 3.31 in the previous year[17]. - The net cash flow from operating activities was CNY 54 million, a significant decrease of 89.26% compared to CNY 502 million in 2015[17]. - The company's total assets at the end of 2016 were CNY 7.63 billion, down 6.46% from CNY 8.16 billion at the end of 2015[17]. - The net assets attributable to shareholders decreased to CNY 5.26 billion, an 8.11% decline from CNY 5.73 billion in 2015[17]. - The weighted average return on equity (ROE) was 3.88%, a decrease of 42.62 percentage points from 46.50% in 2015[18]. - The company achieved a revenue of 5.321 billion yuan in 2016, a year-on-year decrease of 8.98%[39]. - The net profit attributable to the parent company was 216 million yuan, down 90.23% year-on-year[39]. - The company's sales expenses increased by 17.16% year-on-year, while management expenses rose by 7.01%[39]. Revenue Sources and Trends - In Q4 2016, the company reported revenue of 1.033 billion RMB, a decrease of 195 million RMB or 15.88% year-on-year[21]. - The decline in revenue was primarily due to the end of the Kao agency business, which generated 117 million RMB in Q4 2016, down 69.95% year-on-year[21]. - The revenue from the agency business of Kao was 945 million yuan, a decline of 29.84% year-on-year[41]. - The self-owned brand revenue was 4.376 billion yuan, down 2.73% year-on-year[41]. - The overall market growth rate for the cosmetics industry in China is expected to slow down, with a revised average compound growth rate of approximately 6.7% for the next five years[40]. - The company aims for a double-digit growth in self-owned brand revenue in 2017, following the termination of the Kao agency business, which is expected to negatively impact future revenue and net profit[44]. Marketing and Brand Strategy - The marketing campaign for the Double Eleven event led to increased promotional and logistics expenses, significantly impacting Q4 net profit[22]. - The company aims to strengthen its online business and brand image through strategic marketing initiatives[22]. - The company has launched new products and series, including the 六神基础系列洗手液 and 六神中草药除菌健肤甘草系列, aiming to increase brand awareness among younger consumers[50]. - The company reported a significant increase in e-commerce channel sales, with promotional events like the 4.17 佰草节 achieving over 100% year-on-year growth[50]. - The company plans to strengthen brand construction and channel innovation, ensuring effective communication with consumers to enhance brand value[46]. Research and Development - The company has established core competencies in R&D, brand asset management, channel coverage, and supply chain management[31]. - The company has focused on enhancing its R&D capabilities, resulting in improved product development speed and quality, with new products utilizing patented technologies[48]. - The company launched 31 new products during the reporting period, including face masks and cleansing products, targeting young consumers through digital marketing[55]. - The new product contribution rate improved from 9.29% in 2015 to 12.6% in 2016, indicating successful product development efforts[85]. - The R&D center introduced 45 new research talents in 2016, enhancing efficiency and productivity significantly[104]. - The company applied for 57 patents in 2016, including 20 invention patents, demonstrating a commitment to innovation and technology advancement[105]. Operational Efficiency - The company has optimized its organizational structure, shifting from a channel-driven to a brand-driven marketing system to enhance operational efficiency[46]. - The supply chain optimization efforts improved response speed and flexibility, enhancing overall operational efficiency[56]. - The company's inventory decreased by 12% year-on-year, indicating improved operational efficiency[92]. - The overall cost of goods sold decreased by 13.06% to CNY 2,061,008,905.06, with significant reductions in raw material costs[71]. Cash Flow and Investments - The net cash flow from operating activities dropped significantly by 89.26% to ¥53.99 million, compared to ¥502.58 million in the previous year[62]. - The net cash flow from investment activities was negative at ¥573.51 million, a decline of 391.02% from a positive ¥197.07 million in the previous year[62]. - The company plans to invest 500 million RMB in the Ping An Consumer and Technology Fund, having already paid 350 million RMB[131]. - The balance of the company's bank wealth management products reached 1.615 billion CNY at the end of the reporting period[132]. Market Competition and Challenges - The company faces intensified competition from both domestic and foreign brands in the beauty market, with local brands gaining market share[147]. - The cosmetics channel structure is undergoing transformation, with specialty stores being the only offline channel showing steady growth, while e-commerce channels are gaining importance[148]. - The company recognizes the challenges posed by traditional sales channels and increasing competition from foreign brands[145]. Social Responsibility and Community Engagement - In 2016, Shanghai Jahwa's poverty alleviation efforts included project support, material donations, and cash contributions totaling RMB 155 million, with RMB 12 million allocated for direct funding and RMB 143 million for material donations[172]. - The company invested RMB 2 million to improve educational resources in impoverished areas and RMB 143 million specifically for targeted poverty alleviation efforts[174]. - Shanghai Jahwa received the "Contribution Award" from the China Youth Development Foundation for its efforts in the Hope Project[174]. - In 2017, the company plans to deepen its poverty alleviation work by integrating social resources and increasing investments in impoverished regions[175]. Shareholder and Governance - The company has established a cash dividend policy that mandates a minimum of 30% of the net profit attributable to shareholders to be distributed as cash dividends each year[154]. - The company guarantees that it and its controlled companies will not engage in any competing business with Shanghai Jahwa, ensuring no direct or indirect competition[157]. - The company has committed to strictly comply with relevant laws and regulations, ensuring fair treatment of all shareholders and avoiding any improper benefits[157]. - The company has appointed PwC Zhongtian as the domestic accounting firm, with an audit fee of RMB 2.23 million for the year[159].

Financial Performance - Operating revenue for the first nine months was CNY 4,287,852,830.37, down 7.14% year-on-year [9]. - Net profit attributable to shareholders for the first nine months was CNY 433,427,726.90, a decrease of 45.17% compared to the same period last year [9]. - The net cash flow from operating activities for the first nine months was CNY 86,203,803.74, a significant decline of 78.17% year-on-year [9]. - Basic earnings per share decreased to CNY 0.64, down 46.22% from CNY 1.19 in the previous year [8]. - The company anticipates a significant decrease in net profit for 2016, projected to drop by 80% to 90% compared to the previous year [27]. - Net profit for the first nine months was CNY 516,522,621.24, a decline of 44.8% compared to CNY 934,526,435.43 in the previous year [40]. - Total revenue for the first nine months of 2016 was CNY 2,333,348,015.56, a decrease of 2.73% compared to CNY 2,398,418,673.32 in the same period last year [42]. - Net profit for the first nine months of 2016 reached CNY 595,845,529.73, down 32.73% from CNY 885,603,087.27 in the previous year [42]. - Operating profit for the first nine months of 2016 was CNY 693,142,117.51, a decrease of 32.66% from CNY 1,030,600,795.34 in the same period last year [42]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 7,935,727,254.18, a decrease of 2.74% compared to the end of the previous year [7]. - The total number of shareholders at the end of the reporting period is 38,148 [14]. - The largest shareholder, Shanghai Jahwa United Co., Ltd., holds 182,449,233 shares, accounting for 27.07% of total shares [15]. - Accounts receivable increased by 937.02% from the previous period, reaching 20,371,000 RMB due to newly issued notes [16]. - Other receivables decreased by 77.98% to 90,965,249.02 RMB, primarily due to the recovery of a previously recorded equity transfer payment [16]. - Financial assets available for sale increased by 267.11% to 438,700,000 RMB, mainly due to increased investments in financial products [16]. - The construction in progress increased by 254.95% to 543,647,826.30 RMB, primarily due to investments in the Qingpu base relocation project [17]. - The company's total equity decreased to CNY 5,752,220,461.69 from CNY 5,826,575,356.88, a decline of 1.3% [37]. - Total liabilities increased to CNY 2,169,402,033.36 from CNY 1,975,581,578.71, reflecting a rise of 9.8% [37]. Cash Flow - The net cash flow from operating activities for Q3 2016 was ¥86,203,803.74, a decrease of 78% compared to ¥394,937,757.08 in the same period last year [45]. - Total cash inflow from operating activities was ¥4,736,625,630.36, while cash outflow was ¥4,650,421,826.62, resulting in a net inflow of ¥86,203,803.74 [45]. - Cash inflow from investment activities totaled ¥2,070,477,645.08, compared to ¥1,722,554,738.14 in the previous year, marking a 20% increase [49]. - The net cash flow from investment activities was -¥481,730,142.90, an improvement from -¥1,610,906,725.73 year-over-year [45]. - Cash inflow from financing activities was ¥31,642,600.00, while cash outflow was ¥664,362,231.39, leading to a net cash flow of -¥664,362,231.39 [46]. - The total cash and cash equivalents at the end of Q3 2016 stood at ¥1,874,797,401.05, a significant decrease from ¥1,020,983,498.61 in the previous year [46]. Market Performance - E-commerce business revenue reached CNY 568 million, representing a year-on-year growth of 50.25% [9]. - The overall gross profit margin slightly increased despite a decline in major sales channels such as department stores and supermarkets [9]. - The company's skincare and makeup brand Lancôme holds a market share of 8.6%, with a 0.4% increase [19]. - The leading brand in the floral water category, Liushen, has a market share of 73.7%, reflecting a 1.5% increase [20]. - In the body wash category, the top brand, Shufujia, has a market share of 17.0%, with a slight increase of 0.2% [21]. - The market share of the men's cream brand, L'Oreal Paris, is 24.6%, with a decrease of 0.2% [25]. Investment and Future Plans - The company plans to increase investments in channel expansion, brand building, new product development, and organizational capability enhancement [9]. - The company reported a decrease in investment income by 85.41%, down to 23,786,141.01 RMB, compared to the previous period [17]. - The company experienced an increase in asset impairment losses, totaling CNY 80,741,026.09 for the first nine months of 2016, compared to CNY 54,311,744.38 in the same period last year [42]. - The company reported a decrease in investment income, with a loss of CNY 667,034.18 for Q3 2016, compared to a gain of CNY 64,005,594.25 in Q3 2015 [42].