Financial Performance - The company's revenue for 2020 was approximately CNY 3.75 billion, representing a 20.13% increase from 2019 [18]. - Net profit attributable to shareholders for 2020 was approximately CNY 476 million, a 21.22% increase compared to 2019 [18]. - The net cash flow from operating activities for 2020 was approximately CNY 332 million, showing a significant increase of 40.51% from the previous year [18]. - The total assets at the end of 2020 were approximately CNY 3.64 billion, reflecting a 22.07% increase from 2019 [18]. - The basic earnings per share for 2020 was CNY 2.37, up 20.92% from CNY 1.96 in 2019 [18]. - The company reported a net profit of approximately CNY 191 million in Q4 2020, which was the highest quarterly profit for the year [20]. - The revenue for Q4 2020 reached approximately CNY 1.46 billion, significantly higher than other quarters due to seasonal sales peaks [20]. - The company's net assets at the end of 2020 were approximately CNY 2.39 billion, a 17.83% increase from 2019 [18]. - The company received government subsidies amounting to approximately CNY 12.2 million in 2020, which were closely related to its normal business operations [21]. Dividend Policy - The company plans to distribute a cash dividend of 7.20 RMB per 10 shares, totaling 144,804,186 RMB (including tax) to shareholders [4]. - The company has established a cash dividend policy, ensuring that at least 20% of the distributable profits are allocated as cash dividends annually [90]. - In 2020, the company declared a cash dividend of 7.20 CNY per 10 shares, totaling 144,804,186.00 CNY, which represents 30.42% of the net profit attributable to ordinary shareholders [91]. - The cash dividend for 2019 was 5.90 CNY per 10 shares, totaling 118,749,040.40 CNY, which was 30.24% of the net profit attributable to ordinary shareholders [91]. - The company emphasizes a sustainable profit distribution policy that balances short-term and long-term interests of shareholders [89]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm [3]. - The board of directors and supervisory board members have confirmed the accuracy and completeness of the annual report [2]. - The company has committed to ensuring the financial report's authenticity and completeness [3]. - There are no non-operating fund occupations by controlling shareholders or related parties [5]. - The company has not violated decision-making procedures for external guarantees [5]. - The company has no outstanding issues related to major accounting errors or changes in accounting policies during the reporting period [114]. - The company has committed to ensuring that any share reductions by major shareholders comply with relevant regulations and will announce intentions three trading days in advance [100]. Market and Sales Strategy - The company plans to continue expanding its market presence and investing in new product development to drive future growth [20]. - The company operates a dual-channel sales model, focusing on both online and offline sales strategies [26]. - The company reported a non-operating loss of 6.81 million RMB, impacting overall profitability [30]. - The company implemented a product-driven strategy, focusing on digital management throughout the product lifecycle and promoting key products to enhance customer retention [37]. - The company aims to enhance brand perception and engage younger consumers through various marketing campaigns and collaborations [38]. Research and Development - The company has established partnerships with leading global raw material suppliers for R&D, enhancing its product development capabilities [27]. - The total R&D expenditure for the period was ¥72,200,028.77, accounting for 1.92% of total revenue [54]. - The number of R&D personnel increased to 196, representing 6.76% of the total workforce [54]. - The company aims to enhance its R&D capabilities to build a competitive edge in technology and innovation [84]. Environmental and Social Responsibility - The company is committed to environmental protection and has established a resource-saving and environmentally friendly green factory [135]. - The company has actively engaged in social responsibility initiatives, as detailed in its sustainability report [133]. - The company implemented measures to reduce wastewater discharge and improve energy efficiency, including the addition of a 120-ton water tank and a low-nitrogen gas boiler [135]. Shareholder Structure and Governance - The company has a good integrity status for both itself and its major stakeholders during the reporting period, indicating strong governance [118]. - The company has not engaged in any activities that would constitute competition with its existing and future business operations [109]. - The company has committed to timely announcements regarding any violations of commitments and the reasons behind them [106]. - The company reported a total of 20,126,956 shares, with 100% ownership structure [137]. - The largest shareholder, Hou Jun Cheng, holds 72,640,500 shares, representing 36.12% of the total shares [147]. Financial Position and Assets - Total assets increased from CNY 2,979,365,076.82 to CNY 3,636,882,185.29, while total liabilities rose from CNY 909,307,033.25 to CNY 1,155,019,919.16, resulting in an increase in the debt-to-asset ratio from 30.52% to 31.76% [144]. - The company reported a net profit of CNY 1,265,671,865.63 in 2020, compared to CNY 908,411,607.62 in 2019, reflecting an increase of about 39.3% [197]. - Long-term equity investments rose to CNY 58,220,059.60 in 2020, compared to CNY 14,728,003.68 in 2019, marking an increase of about 295.5% [195]. - The company’s intangible assets decreased to $308,401,627.24 from $318,477,880.56, a decline of about 3.5% [200].

Financial Performance - Operating income for the first nine months was ¥2,291,070,947.47, representing a growth of 10.14% compared to the same period last year[5] - Net profit attributable to shareholders of the listed company was ¥284,999,721.17, an increase of 18.74% year-on-year[5] - Basic earnings per share for the third quarter were ¥1.42, an increase of 18.33% compared to the same period last year[6] - Diluted earnings per share for the third quarter were ¥1.42, reflecting a growth of 19.33% year-on-year[6] - Total operating revenue for Q3 2020 reached ¥906,747,098.59, a 20.5% increase from ¥752,310,545.06 in Q3 2019[23] - Net profit for Q3 2020 was ¥102,396,471.37, up 58.5% from ¥64,564,642.25 in Q3 2019[25] - The net profit attributable to shareholders of the parent company for Q3 2020 was ¥106,232,700.41, an increase of 59.5% from ¥66,631,354.41 in Q3 2019[25] - The total profit for Q3 2020 was ¥135.88 million, an increase from ¥110.53 million in Q3 2019, reflecting overall business growth[28] Assets and Liabilities - Total assets at the end of the reporting period reached ¥3,231,123,441.43, an increase of 8.45% compared to the end of the previous year[5] - Current assets totaled CNY 2,103,058,266.70, compared to CNY 1,912,866,653.57, reflecting an increase of about 9.9%[18] - Non-current assets rose to CNY 1,128,065,174.73 from CNY 1,066,498,423.25, marking a growth of approximately 5.8%[18] - Total liabilities reached CNY 995,924,642.42, up from CNY 909,307,033.25, which is an increase of approximately 9.5%[18] - The total amount of other receivables rose by 167.10% to RMB 40,785,386.13, primarily due to pending payments from a new investment company and canceled orders during the pandemic[11] - The total current liabilities increased by 131.70% to RMB 299,000,000.00, mainly due to new bank borrowings during the period[12] - Total liabilities amounted to approximately $555.26 million, with current liabilities at $541.78 million[39] Cash Flow - Net cash flow from operating activities for the first nine months was ¥206,896,280.64, up 184.78% from the previous year[5] - The company's cash flow from operating activities increased by 184.78% to RMB 206,896,280.64 compared to the same period last year, driven by sales growth and increased collection of receivables[13] - The total cash inflow from operating activities for the first three quarters of 2020 was approximately ¥2.42 billion, compared to ¥2.14 billion in the same period of 2019, reflecting a growth of 12.93%[30] - The net cash flow from operating activities for Q3 2020 was CNY 206,896,280.64, a significant increase from CNY 72,650,491.31 in Q3 2019, reflecting a growth of approximately 184.5%[31] - The cash inflow from financing activities was CNY 300,466,300.00, a substantial rise from CNY 27,543,331.14 in the previous year, marking an increase of approximately 989.5%[31] Shareholder Information - Net assets attributable to shareholders of the listed company were ¥2,201,913,532.28, reflecting an increase of 8.49% year-on-year[5] - The total number of shareholders at the end of the reporting period was 21,069[8] - The top shareholder, Hou Jun Cheng, held 36.09% of the shares, totaling 72,640,500 shares[8] - The company's equity attributable to shareholders rose to CNY 2,201,913,532.28 from CNY 2,029,687,883.68, reflecting an increase of about 8.5%[19] Expenses and Investments - The company's sales expenses slightly decreased by 0.20% to RMB 818,606,103.63, influenced by the new revenue recognition standards and reduced travel expenses due to the pandemic[13] - Research and development expenses for Q3 2020 were ¥21,787,871.15, a 18.5% increase from ¥18,371,675.47 in Q3 2019[24] - The investment income for the period was RMB 1,575,595.65, a significant improvement from a loss of RMB 299,892.00 in the previous year[13] - The company's long-term equity investments increased by 305.87% to RMB 59,776,263.75, reflecting a new investment of RMB 46 million in a joint venture[12] Market Strategy - The company plans to continue expanding its market presence and invest in new product development[24] - The financial report does not indicate any new product launches or market expansion strategies at this time[40]

Financial Performance - The company's operating revenue for the first half of 2020 was approximately ¥1.38 billion, representing a 4.26% increase compared to ¥1.33 billion in the same period last year[13]. - The net profit attributable to shareholders for the first half of 2020 was approximately ¥178.77 million, a 3.10% increase from ¥173.39 million in the previous year[13]. - The net cash flow from operating activities was approximately ¥36.56 million, a significant recovery from a negative cash flow of ¥59.13 million in the same period last year[13]. - The total assets at the end of the reporting period were approximately ¥3.08 billion, up 3.22% from ¥2.98 billion at the end of the previous year[13]. - The net profit margin attributable to shareholders was 12.91%, slightly down from 13.06% in the previous year[13]. - Basic earnings per share for the first half of 2020 were ¥0.89, a 2.30% increase from ¥0.87 in the same period last year[14]. - The weighted average return on equity decreased to 8.51%, down 1.27 percentage points from 9.78% in the previous year[14]. - The accounts receivable turnover rate was 15.74 times per year, a decrease of 27.30% compared to 21.65 times in the previous year[14]. Revenue Breakdown - Online channel revenue reached 878 million RMB, growing by 43.85% year-on-year, accounting for 63.55% of total revenue[22]. - Offline channel revenue was 504 million RMB, a decrease of 29.69% year-on-year, representing 36.45% of total revenue[22]. - The skincare product revenue was 1.122 billion RMB, a decline of 6.94% year-on-year[22]. - The beauty (makeup) product revenue increased significantly by 251.76% year-on-year, reaching 137 million RMB[22]. Research and Development - The company has established a professional innovation R&D system and a strong self-production capability[21]. - R&D expenses rose by 10.07% to ¥31,865,144.96, reflecting increased investment in new product development[29]. - Research and development expenses for the first half of 2020 were CNY 31,865,144.96, compared to CNY 28,950,059.55 in the same period last year, indicating an increase of 6.6%[79]. Cash Flow and Investments - The company reported a net cash inflow from investment activities of CNY 103,239,680.35, a recovery from a net outflow of CNY 222,785,558.55 in the first half of 2019[88]. - The total cash inflow from operating activities reached CNY 1,115,495,000.42, compared to CNY 897,427,268.63 in the previous year, indicating an increase of approximately 24%[88]. - The company reported a decrease in investment cash flow by 31.60%, totaling ¥104,618,006.73, primarily due to reduced financial investments[29]. Shareholder Commitments - The company has committed to a 36-month lock-up period for shares held by major shareholders, starting from the date of listing, with automatic extensions under certain conditions[42]. - Major shareholders are allowed to reduce their holdings by no more than 6% of the total shares before the issuance within 24 months after the lock-up period expires[45]. - The company will extend the lock-up period for shares held by major shareholders and actual controllers by an additional 6 months if they violate the share lock-up commitment[45]. Financial Position - Total assets increased to CNY 3,075,296,062.79 as of June 30, 2020, compared to CNY 2,979,365,076.82 at the end of 2019, reflecting a growth of approximately 3.2%[73]. - Total liabilities rose to CNY 937,109,952.57 from CNY 909,307,033.25, an increase of approximately 3.1%[75]. - Shareholders' equity increased to CNY 2,138,186,110.22 from CNY 2,070,058,043.57, reflecting a growth of about 3.3%[75]. Compliance and Governance - The company has made significant investments in new product development and market expansion strategies[36]. - The company is committed to improving its compensation system to align with the measures for filling diluted immediate returns[50]. - The company will ensure that any competitive business activities are ceased or transferred to avoid conflicts with its operations[51]. Risk Factors - The company faces risks related to the uncertainty of the COVID-19 pandemic, new project incubation, and competition among brands[37]. - The company has not recognized any bad debt provisions for other receivables, indicating a potential area of risk[195]. Accounting Policies - The company recognizes revenue based on the performance obligations identified in contracts, either over time or at a point in time, depending on specific criteria[152]. - The company implemented the revised "Accounting Standards for Revenue" effective January 1, 2020, impacting the financial statements without adjusting prior periods[160]. - The company recognizes financial assets when the contractual rights to receive cash flows have expired or when the financial asset has been transferred and meets the criteria for derecognition as per accounting standards[114].

Financial Performance - Net profit attributable to shareholders decreased by 14.72% to CNY 77,728,276.22 year-on-year[4] - Operating revenue declined by 5.25% to CNY 608,193,650.94 compared to the same period last year[4] - Basic earnings per share decreased by 15.22% to CNY 0.39 per share[4] - The company reported a net profit excluding non-recurring gains and losses of CNY 83,469,428.49, down 8.36% year-on-year[4] - The company reported a profit before tax of RMB 96.37 million for Q1 2020, down 19.0% from RMB 118.96 million in Q1 2019[20] - Net profit for Q1 2020 was RMB 76.73 million, a decline of 15.2% compared to RMB 90.51 million in Q1 2019[21] - The total comprehensive income for the period was 79,650,264.91 RMB, compared to 83,905,364.88 RMB in the previous year[24] Cash Flow - Net cash flow from operating activities was negative at CNY -134,873,267.48, compared to CNY -41,397,214.02 in the previous year[4] - The company reported a net cash flow from operating activities of -134,873,267.48 RMB, compared to -41,397,214.02 RMB in Q1 2019, indicating a decline in operational cash flow[26] - The total cash inflow from operating activities was 688,857,662.26 RMB, while cash outflow was 823,730,929.74 RMB, resulting in a net cash flow deficit[26] - The company's cash flow from financing activities resulted in a net outflow of -114,181,810.61 RMB, compared to -48,895,925.37 RMB in Q1 2019[26] - The net cash flow from financing activities was -85,965,538.71, a decrease of 4,208,897.87 compared to the previous period[29] - The net increase in cash and cash equivalents was -112,437,597.73, compared to -79,945,848.10 in the previous period[29] Assets and Liabilities - Total assets decreased by 7.24% to CNY 2,763,586,896.77 compared to the end of the previous year[4] - Total liabilities amounted to CNY 613,445,475.81, a decrease from CNY 909,307,033.25 in the previous period, indicating a reduction of approximately 32.5%[15] - Total equity reached CNY 2,150,141,420.96, up from CNY 2,070,058,043.57, reflecting an increase of about 3.9%[15] - Current assets totaled CNY 1,091,508,132.66, down from CNY 1,289,826,339.45, representing a decline of approximately 15.4%[17] - The company's cash and cash equivalents decreased significantly to CNY 150,634,800.62 from CNY 403,072,398.35, a drop of around 62.7%[15] Shareholder Information - The total number of shareholders at the end of the reporting period was 9,417[7] - The largest shareholder, Hou Jun Cheng, holds 36.09% of the shares[7] Government Subsidies and Other Income - The company received government subsidies amounting to CNY 4,889,946.42 during the reporting period[6] - The company's other income increased significantly by 1,953.32% to ¥5,359,718.92 from ¥261,027.17, primarily due to increased government subsidies received[10] Investment and Expenses - The company's long-term equity investments increased significantly by 311.12% to ¥60,549,967.96 from ¥14,728,003.68, mainly due to a new investment of ¥46,000,000 in a joint venture[9] - Research and development expenses increased to RMB 15.92 million in Q1 2020, up 17.9% from RMB 13.50 million in Q1 2019[20] - The company experienced a significant reduction in sales expenses, which fell to RMB 197.19 million in Q1 2020, down 13.7% from RMB 228.60 million in Q1 2019[20] Financial Management - The company's financial expenses recorded a significant decrease, showing a loss of ¥890,731.84 compared to a loss of ¥3,854,651.03 in the previous year, indicating improved financial management[10] - The company's cash flow management reflects a strategic focus on liquidity amid changing financial regulations[29] - The company’s financial reporting is compliant with the latest accounting standards as of 2020[30]

Financial Performance - The company's operating revenue for 2019 was CNY 3,123,520,211.77, representing a 32.28% increase compared to CNY 2,361,248,766.72 in 2018[16]. - The net profit attributable to shareholders for 2019 was CNY 392,681,976.58, a growth of 36.73% from CNY 287,188,727.12 in 2018[16]. - The basic earnings per share for 2019 was CNY 1.96, up 36.11% from CNY 1.44 in 2018[17]. - The net cash flow from operating activities for 2019 decreased by 54.00% to CNY 235,961,328.34 from CNY 512,918,568.86 in 2018[16]. - The total assets at the end of 2019 were CNY 2,979,365,076.82, a 4.17% increase from CNY 2,860,042,557.71 at the end of 2018[16]. - The company's total revenue for the year reached 3.124 billion yuan, representing a year-on-year growth of 32.28%[29]. - The net profit attributable to shareholders was 393 million yuan, reflecting a year-on-year increase of 36.73%[32]. - The company reported a quarterly revenue of CNY 1,043,420,091.90 in Q4 2019, significantly higher than other quarters due to seasonal sales peaks[20]. Dividend Distribution - The company distributed a cash dividend of 5.90 RMB per 10 shares, totaling 118,749,040.40 RMB (including tax) to shareholders[4]. - The company has not proposed any capital reserve conversion into share capital or bonus shares in its profit distribution plan[4]. - In 2019, the company distributed a cash dividend of CNY 5.90 per 10 shares, totaling CNY 118,749,040.40, representing 30.24% of the net profit attributable to ordinary shareholders[94]. Audit and Compliance - The company reported a standard unqualified audit opinion from Tianjian Accounting Firm[3]. - The company has a commitment to ensuring the accuracy and completeness of its financial reports, as stated by its management[3]. - The audit report indicated that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2019[183]. - The audit firm provided an unqualified opinion on the financial statements, indicating no significant misstatements were found[183]. Research and Development - The company launched several new products, including a niacinamide whitening essence and deep-sea collagen cream, enhancing its product portfolio[34]. - The company received 21 new national invention patents during the reporting period, increasing its total to 64[36]. - Research and development expenses increased by 45.56% to ¥74,602,606.55, up from ¥51,250,857.94[39]. - The company has made significant investments in research and development, focusing on skincare, cleansing, and cosmetic products[61]. Market and Sales Performance - Online channel revenue was 1.655 billion yuan, up 60.97% year-on-year, accounting for 53.09% of total revenue[30]. - The main brand, Proya, generated 2.656 billion yuan in revenue, a 26.81% increase, making up 85.21% of total revenue[31]. - The skincare product segment generated revenue of ¥2,675,674,488.14, with a year-on-year growth of 25.62%[42]. - The online sales channel's contribution increased from 43.57% in 2018 to 53.09% in 2019[30]. Corporate Governance - The company has committed to compensating investors for losses caused by false statements or omissions in the prospectus, ensuring protection for small investors[103]. - The company has established a framework to protect investor interests, particularly for small investors, in the event of legal violations[104]. - The company has committed to not abusing its controlling shareholder position and will not interfere in management activities[107]. - The company continues to monitor compliance with these commitments to uphold its corporate governance standards[96]. Environmental Responsibility - The company’s production facilities utilize a solar-assisted heating system, achieving low carbon emissions with nitrogen oxides below 50 mg/Nm³ through external flue gas recirculation technology[136]. - The company implemented energy-saving measures, including monitoring water, electricity, and steam usage daily, and conducted activities to reduce energy consumption[134]. - The total investment in environmental protection amounted to ¥141.85 million, representing 0.05% of total revenue[76]. - The company’s wastewater treatment meets the national standard for pollutant discharge, with daily monitoring of COD levels to ensure effective environmental oversight[136]. Shareholder Information - The top shareholder, Hou Jun Cheng, holds 72,640,500 shares, representing 36.09% of the total shares[145]. - Fang Yu You, the second-largest shareholder, owns 48,858,000 shares, accounting for 24.27%[145]. - The total number of shares held by the top five shareholders is 132,706,700, which is approximately 66.77% of the total shares[145]. - The company has no strategic investors or general legal entities among the top 10 shareholders[148]. Employee and Management Structure - The total number of employees in the parent company and major subsidiaries is 2,844, with 718 in the parent company and 2,126 in subsidiaries[166]. - The number of R&D personnel is 172, representing approximately 6% of the total workforce[166]. - The company has implemented a training program aimed at enhancing employee skills and engagement through various learning formats[168]. - The management team has extensive experience in the cosmetics industry, with backgrounds in various related companies, which strengthens the company's competitive edge[157].

Financial Performance - Operating income for the first nine months was approximately ¥2.08 billion, representing a year-on-year increase of 33.35%[5] - Net profit attributable to shareholders of the listed company was approximately ¥240 million, up 32.04% from the previous year[5] - Basic earnings per share increased by 31.87% to ¥1.20 per share[6] - Diluted earnings per share rose by 30.77% to ¥1.19 per share[6] - The company reported a total comprehensive income of ¥64,517,125.63 for Q3 2019, compared to ¥52,892,468.79 in Q3 2018[28] - The company’s net profit for the first three quarters of 2019 was ¥233,171,465.08, up 28.5% from ¥181,437,019.40 in the first three quarters of 2018[27] - The net profit for Q3 2019 was ¥90,129,789.30, up 60.0% from ¥56,356,192.93 in Q3 2018[31] Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥2.70 billion, a decrease of 5.46% compared to the end of the previous year[5] - Total liabilities decreased from CNY 1,161,731,820.18 to CNY 820,951,257.68, a reduction of approximately 29.3%[19] - Current liabilities totaled CNY 748,995,003.95, down from CNY 1,034,656,960.19, representing a decrease of about 27.7%[19] - Non-current liabilities decreased from CNY 127,074,859.99 to CNY 71,956,253.73, a decline of approximately 43.4%[19] - Total equity attributable to shareholders increased from CNY 1,694,310,463.85 to CNY 1,865,143,491.44, reflecting a growth of about 10.1%[20] Cash Flow - The net cash flow from operating activities for the first nine months was approximately ¥72.65 million, a decrease of 61.02% compared to the previous year[5] - The net cash flow from operating activities was 72,650,491.31 CNY, a decrease of 61% compared to 186,372,616.78 CNY in the same period last year[34] - Total cash inflow from operating activities reached 2,143,925,918.00 CNY, up from 1,809,714,207.30 CNY, representing an increase of approximately 18.5%[34] - Cash outflow from operating activities totaled 2,071,275,426.69 CNY, compared to 1,623,341,590.52 CNY, marking a rise of about 27.7%[34] Investments and Expenses - Research and development expenses grew by 33.82% to ¥47,321,735.02 from ¥35,363,534.33, reflecting enhanced investment in new product development and formula upgrades[13] - Long-term equity investments increased by 182.96% to ¥20,364,126.41 from ¥7,196,757.47, due to new investments in joint ventures[12] - The company reported non-operating income of approximately ¥5.09 million from government subsidies related to normal business operations[7] - The company reported a decrease in financial expenses, showing a net income of -¥1,997,893.48 in Q3 2019 compared to -¥1,805,061.75 in Q3 2018[30] Shareholder Information - The total number of shareholders at the end of the reporting period was 9,770, with the largest shareholder holding 36.09% of the shares[9] - Unallocated profits rose from CNY 634,448,228.13 to CNY 787,919,789.22, an increase of approximately 24.2%[20]

Financial Performance - The company's revenue for the first half of 2019 was approximately RMB 1.33 billion, representing a year-on-year increase of 27.48% compared to RMB 1.04 billion in the same period last year[13]. - The net profit attributable to shareholders for the same period was approximately RMB 173.39 million, reflecting a growth of 34.49% from RMB 128.93 million in the previous year[13]. - The net profit after deducting non-recurring gains and losses was approximately RMB 170.65 million, which is a 39.40% increase from RMB 122.42 million year-on-year[13]. - The basic earnings per share increased to RMB 0.87, up 35.94% from RMB 0.64 in the same period last year[14]. - The diluted earnings per share also rose to RMB 0.86, marking a 34.38% increase compared to RMB 0.64 in the previous year[14]. - The company achieved a revenue of 1.328 billion RMB, representing a year-on-year growth of 27.48%[23]. - The net profit attributable to shareholders was 173 million RMB, an increase of 34.49% compared to the previous year[23]. - The company reported a significant increase in minority interests by 143.93% to ¥9,757,869.27, reflecting new subsidiaries[36]. Cash Flow and Assets - The net cash flow from operating activities showed a significant decline, amounting to approximately RMB -59.13 million, compared to RMB 221.63 million in the same period last year, a decrease of 126.68%[13]. - Cash and cash equivalents decreased by 37.34% to ¥917,276,371.24, accounting for 36.28% of total assets[35]. - Accounts receivable increased by 75.77% to ¥156,353,037.16, representing 6.18% of total assets due to sales growth and promotional activities[35]. - Prepayments rose by 61.62% to ¥27,625,588.98, accounting for 1.09% of total assets, driven by increased marketing and promotion expenses[35]. - The total assets decreased by 11.61% to approximately RMB 2.53 billion from RMB 2.86 billion at the end of the previous year[13]. - The company's total current assets amounted to approximately CNY 1.48 billion, a decrease of 18.7% from CNY 1.82 billion on December 31, 2018[76]. - The company's cash and cash equivalents were reported at CNY 917.28 million, down from CNY 1.46 billion, indicating a decline of 37.4%[76]. Revenue Sources - E-commerce channel revenue reached 611 million RMB, accounting for 46.01% of total revenue, with a year-on-year growth of 48.08%[23]. - The skincare segment generated 1.205 billion RMB, making up 90.83% of total revenue, with a year-on-year increase of 27.81%[24]. - The brand "Polaire" accounted for 88.50% of total revenue, with a year-on-year growth of 26.28%[26]. Research and Development - Research and development expenses increased by 39.70% to ¥28,950,059.55, up from ¥20,723,495.73, reflecting the company's commitment to innovation and new product development[33]. - The company launched four new product series, including a new essence family and a deep-sea moisturizing yeast liquid[26]. - The company participated in the formulation of the "Whitening and Moisturizing Cream" standard, showcasing its leadership in the cosmetics industry[29]. Shareholder Commitments and Governance - No profit distribution or capital reserve transfer plans were proposed for the half-year period[43]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of listing, with a potential extension of 6 months if the stock price falls below the issue price for 20 consecutive trading days within the first 6 months[45]. - Major shareholders, including the controlling shareholder, have agreed to a lock-up period that extends to November 14, 2020, with specific conditions for share reduction post-lock-up[45]. - The company has established a commitment to protect investor interests and minimize losses in case of unforeseen circumstances affecting stock performance[47]. - The company has outlined specific conditions under which the lock-up period may be automatically extended, ensuring compliance with market regulations[45]. Environmental and Social Responsibility - The company has implemented a solar-assisted heating system and external flue gas recirculation technology to achieve low carbon emissions from gas boilers, with nitrogen oxide emissions below 50 mg/Nm³[65]. - The company's wastewater treatment facility has a COD level of ≤40 mg/l, significantly below the national standard of ≤50 mg/l for Class A[65]. - The company has updated its environmental safety management goals and implemented waste classification management in all workshops and office areas[64]. Legal and Compliance - There are no significant litigation or arbitration matters during the reporting period, indicating a stable legal environment for the company[57]. - The integrity status of the company and its controlling shareholders is reported to be good during the reporting period, reflecting a commitment to ethical practices[57]. - The company has not engaged in any activities that would constitute competition with its subsidiaries, ensuring a focused business strategy[54]. Accounting Policies and Financial Reporting - The financial statements are prepared on a going concern basis, with no significant doubts regarding the company's ability to continue operations for the next 12 months[105]. - The company adheres to important accounting policies related to financial instruments impairment, fixed asset depreciation, intangible asset amortization, and revenue recognition[106]. - The financial statements comply with the requirements of the enterprise accounting standards, accurately reflecting the company's financial position and operating results[107].

Financial Performance - Operating revenue for the period reached approximately ¥641.92 million, representing a year-on-year increase of 27.59%[4] - Net profit attributable to shareholders was approximately ¥91.15 million, an increase of 30.36% compared to the same period last year[4] - The company reported a net profit excluding non-recurring gains and losses of approximately ¥91.09 million, an increase of 35.38% year-on-year[4] - Basic earnings per share were ¥0.46, reflecting a growth of 31.43% compared to the same period last year[4] - Diluted earnings per share were ¥0.45, an increase of 28.57% compared to the same period last year[4] - Total operating revenue for Q1 2019 reached ¥641,915,746.67, a 27.6% increase from ¥503,122,369.42 in Q1 2018[21] - Net profit attributable to shareholders for Q1 2019 was ¥91,149,334.41, up from ¥69,920,926.50 in Q1 2018, representing a 30.5% growth[22] - Gross profit margin improved to 18.6% in Q1 2019 compared to 16.2% in Q1 2018, indicating better cost management[21] - The company reported a net profit margin of 14.1% for Q1 2019, up from 13.9% in Q1 2018, indicating improved profitability[22] Cash Flow - The net cash flow from operating activities was approximately -¥41.46 million, a decrease of 128.31% year-on-year[4] - Cash flow from operating activities showed a net outflow of CNY 41,461,461.76, compared to a net inflow of CNY 146,461,525.87 in Q1 2018[26] - The total cash outflow from operating activities in Q1 2019 was CNY 720,975,008.22, compared to CNY 426,444,434.54 in Q1 2018[26] - The net cash flow from operating activities was -191,994,153.12 RMB, a significant decline compared to -13,479,837.10 RMB in the same quarter last year, indicating a worsening cash flow situation[28] - The total cash outflow from operating activities was 510,939,213.72 RMB, which is nearly double the outflow of 274,848,475.63 RMB from the same quarter last year, highlighting increased expenditures[28] Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥2.75 billion, a decrease of 3.88% compared to the end of the previous year[4] - Total net assets attributable to shareholders increased to approximately ¥1.79 billion, a rise of 5.74% compared to the previous year[4] - Total current assets decreased to RMB 1,707,180,234.49 from RMB 1,822,899,085.19 at the end of the previous year[14] - Total liabilities decreased from ¥1,161,731,820.18 to ¥945,567,954.12, a reduction of approximately 18.6%[17] - Current liabilities decreased from ¥1,034,656,960.19 to ¥818,493,094.13, a reduction of about 20.9%[16] - The company reported a significant decrease in short-term borrowings from ¥225,287,375.74 to ¥175,287,375.74, a decline of approximately 22.2%[16] Investments and Expenses - R&D expenses increased by 32.94% to RMB 13,504,984.57 compared to RMB 10,158,699.03 in the previous year[11] - Long-term equity investments rose by 64.90% to RMB 11,867,697.48 from RMB 7,196,757.47 year-over-year[10] - Research and development expenses increased to ¥13,504,984.57, a 33.0% rise from ¥10,158,699.03 in Q1 2018, reflecting a focus on innovation[21] - Cash paid for purchasing goods and services was 270,302,154.58 RMB, which is a substantial increase from 133,012,589.88 RMB in the previous year, indicating higher operational costs[28] Shareholder Information - The number of shareholders at the end of the reporting period was 8,464, with the largest shareholder holding 36.07% of the shares[8] - Shareholders' equity increased from ¥1,698,310,737.53 to ¥1,803,470,992.00, an increase of about 6.2%[17] - The company reported a significant increase in minority interests by 197.05% to RMB 11,882,700.78 from RMB 4,000,273.68[11]

Dividend Distribution - The company plans to distribute a cash dividend of 4.30 RMB per 10 shares, totaling 86,552,894 RMB (including tax) to shareholders[4]. - The cash dividend for 2018 is set at 4.30 RMB per 10 shares, totaling 86,552,894 RMB, which represents 30.14% of the net profit attributable to ordinary shareholders[97]. - The company has established a sustainable and stable profit distribution policy, prioritizing cash dividends when conditions are met[96]. Financial Performance - The company's operating revenue for 2018 was approximately ¥2.36 billion, representing a 32.43% increase compared to ¥1.78 billion in 2017[17]. - Net profit attributable to shareholders for 2018 was approximately ¥287.19 million, a 43.03% increase from ¥200.79 million in 2017[17]. - The net cash flow from operating activities for 2018 significantly increased to approximately ¥512.92 million, compared to ¥334.21 million in 2017[17]. - Basic earnings per share for 2018 was ¥1.44, reflecting a 10.77% increase from ¥1.30 in 2017[18]. - The company's total revenue for 2018 reached ¥2,361,248,766.72, representing a year-on-year increase of 32.43% compared to ¥1,783,028,737.20 in the previous year[40]. - Net profit attributable to shareholders reached 287 million RMB, up 43.03% year-on-year, while the net profit excluding non-recurring items increased by 50.03%[31]. - The company reported a total revenue of 15,000 million RMB for the year 2018, reflecting a growth rate of 2% compared to the previous year[127]. Assets and Liabilities - The company's total assets at the end of 2018 were approximately ¥2.86 billion, a 24.14% increase from ¥2.30 billion at the end of 2017[17]. - The total assets at the end of the period were ¥2,826,000,000.00, with cash and cash equivalents accounting for 51.91% of total assets, up from 47.50% last year[57]. - The total liabilities increased from 845,139,900 RMB to 1,161,731,800 RMB, resulting in a rise in the debt-to-asset ratio from 36.68% to 40.62%[140]. - The company's total liabilities increased to ¥1,161,731,820.18, compared to ¥845,139,930.73, representing a growth of 37.4%[194]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and development strategies[5]. - The company has detailed risk factors related to future development in the report[6]. - The company faces risks related to new project incubation, platform management, and competition from both international and domestic brands[93]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[3]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[5]. - The company has not violated decision-making procedures for external guarantees[5]. - There are no significant accounting policy changes or major accounting errors reported during the period[111]. Research and Development - The company launched five new product series during the reporting period, including skincare and makeup products, enhancing its product portfolio[32]. - The company invested in automation and intelligent manufacturing, including the introduction of various robots in the mask production workshop, significantly improving production efficiency[37]. - The company increased its R&D expenses to ¥51,250,857.94, a rise of 25.53% compared to ¥40,827,856.50 in the previous year, reflecting a focus on new product development and technology upgrades[40]. - The company launched 6 new national authorized invention patents and submitted 23 new patent applications in 2018, totaling 43 authorized patents by the end of the year[36]. Marketing and Sales - Online sales revenue was 1.028 billion RMB, a significant increase of 59.91%, while offline sales revenue was 1.331 billion RMB, growing by 16.86%[30]. - The e-commerce channel accounted for 43.57% of total revenue, with skincare products generating 2.130 billion RMB, representing 90.29% of total revenue[30]. - The company maintained a multi-channel sales strategy, integrating online and offline platforms to optimize sales performance[30]. - The company's marketing strategy included collaborations with popular media and influencers, significantly boosting brand visibility and engagement[32]. Employee Management - The company implemented a diversified incentive mechanism for talent management, enhancing employee motivation and operational efficiency[39]. - The company has established a comprehensive performance evaluation system to link employee remuneration with performance assessment[167]. - The company aims to enhance employee training and development through various learning formats, including online and offline platforms[168]. Corporate Governance - The company has established a mechanism to ensure compliance with share lock-up commitments by its executives and major shareholders[102]. - The company has committed to compensating investors for any losses incurred due to false statements or omissions in the prospectus, with a focus on protecting the interests of small and medium investors[104]. - The company has a clear ownership and control relationship with its actual controllers, as illustrated in the provided diagrams[150]. - The governance structure of the company complies with relevant laws and regulations, ensuring effective decision-making and supervision[171]. Environmental Responsibility - Environmental protection investments amounted to CNY 923,500, accounting for 0.04% of total revenue[80]. - The company implemented various energy-saving measures, including a heat recovery system and solar-assisted heating, to reduce emissions and energy consumption[81]. - The company has maintained a focus on green manufacturing and environmental control in its operations[130]. Shareholder Information - The total number of ordinary shares increased to 20,136.23 million shares after the issuance of 136.23 million new shares[134]. - The largest shareholder, Hou Jun Cheng, holds 72,640,500 shares, representing 36.07% of the total shares[142]. - The company has no strategic investors or general legal entities among the top ten shareholders[146]. - The company has not issued any preferred shares during the reporting period[152].