Core Viewpoint - The cosmetics sector experienced a decline of 2.02% on October 30, with Shuiyang Co. leading the drop. The Shanghai Composite Index closed at 3986.9, down 0.73%, while the Shenzhen Component Index closed at 13532.13, down 1.16% [1]. Group 1: Market Performance - The cosmetics sector saw a significant drop, with Shuiyang Co. falling by 10.25% to a closing price of 19.87 [2]. - Other notable declines included Qing Song Co. at -3.38%, Beitaini at -2.79%, and Shanghai Jahwa at -2.67% [2]. - The overall trading volume for the cosmetics sector was substantial, with Shuiyang Co. alone accounting for a trading volume of 399,500 shares and a transaction value of 817 million [2]. Group 2: Capital Flow - The cosmetics sector experienced a net outflow of 111 million from main funds, while retail investors saw a net inflow of 39.41 million [2]. - The main funds showed varying levels of inflow and outflow across different companies, with Qingdao Jinwang receiving a net inflow of 53.98 million, while LaFang Home Care faced a net outflow of 7.27 million [3]. - The overall sentiment in the sector indicates a cautious approach from institutional investors, contrasting with the slight interest from retail investors [2][3].

Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][21] Core Views - The company's revenue showed steady growth, with a year-on-year increase of 21% in Q3, and a net profit turnaround, achieving a net profit of 0.13 billion, compared to a loss in the same period last year [1][2] - The high-end brand transformation strategy is proving effective, with strong performance from brands like Ifidan and PA, and a positive outlook for long-term growth as the company continues to develop its high-end brand matrix [3][5] - Despite some pressure on net profit margins due to one-time expenses, the overall financial health remains strong, with improvements in gross and net profit margins [2][3] Revenue and Profitability - For the first three quarters, the company achieved revenue of 34.09 billion, a year-on-year increase of 11.96%, and a net profit of 1.36 billion, up 44.01% [1] - In Q3 alone, revenue reached 9.09 billion, marking a 20.92% increase year-on-year, with a net profit of 0.13 billion, indicating a successful recovery [1][2] Financial Metrics - The company's gross margin and net margin for Q3 2025 were 69.82% and 1.38%, respectively, showing year-on-year improvements of 1.83 and 2.87 percentage points [2] - The forecast for net profit for 2025-2027 has been adjusted to 1.76 billion, 2.71 billion, and 3.21 billion, respectively, reflecting the impact of one-time management expenses and initial marketing investments for new brands [3][4] Operational Efficiency - Inventory turnover days decreased by 7 days to 200 days, and accounts receivable turnover days also improved by 7 days to 31 days, indicating enhanced operational efficiency [2][4] - The company reported a positive operating cash flow of 0.23 billion in Q3 2025, marking a turnaround from previous losses [2]

Core Viewpoint - Water Sheep Co., Ltd. (300740) announced that it has no overdue external guarantees, no external guarantees involved in litigation, and no losses incurred due to judgments against guarantees [1] Summary by Categories - **Company Status** - The company confirmed the absence of overdue external guarantees [1] - There are no external guarantees currently involved in any litigation [1] - The company has not incurred any losses from judgments related to guarantees [1]

证券代码：300740 证券简称：水羊股份 公告编号：2025-070 关于公司为子公司提供担保的进展公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假 记载、误导性陈述或重大遗漏。 一、向银行等金融机构申请授信额度及担保事项的概述 水羊集团股份有限公司（以下简称"公司"）经 2025 年 4 月 25 日及 2025 年 6 月 20 日召开的第三届董事会 2025 年第一次定期会议及 2024 年年度股东大 会，分别审议通过了《关于公司 2025 年度为子公司担保额度预计的议案》，根 据公司发展计划，为满足子公司日常经营资金需要，降低融资成本，提高资本营 运能力，2025 年度公司及子公司拟向银行等金融机构申请不超过 30 亿元的综合 授信额度，综合授信品种包括但不限于：短期流动资金贷款、中长期借款、银行 承兑汇票、保函、信用证、抵押贷款等。公司拟为子公司银行综合授信内的融资 提供不超过 30 亿元的担保额度，担保方式包括但不限于连带责任保证、抵押、 质押等。 公司股东大会授权公司管理层根据实际经营情况需要，在总额度内办理担保 事宜，上述总额度内的单笔担保不再上报董事会进行审议表决， ...

Financial Performance - Revenue for Q3 2025 reached ¥909,297,989.92, an increase of 20.92% compared to the same period last year[5] - Net profit attributable to shareholders was ¥12,583,279.28, representing a significant increase of 210.00% year-on-year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥10,351,097.60, up by 188.93% compared to the previous year[5] - Basic earnings per share increased to ¥0.0328, a rise of 212.33% year-on-year[5] - Total operating revenue for the period reached ¥3,409,024,283.81, an increase of 11.94% compared to ¥3,044,847,507.51 in the previous period[23] - Net profit for the current period reached ¥136,138,388.76, an increase of 38.8% compared to ¥98,075,054.95 in the previous period[24] - Operating profit increased to ¥157,257,681.18, up from ¥120,470,175.30, reflecting a growth of 30.6%[24] - Total comprehensive income for the period was ¥138,006,891.61, compared to ¥95,619,094.44, reflecting an increase of 44.1%[25] Assets and Liabilities - Total assets as of September 30, 2025, amounted to ¥4,363,156,072.87, reflecting a 2.64% increase from the end of the previous year[5] - Total assets as of September 30, 2025, were ¥4,363,156,072.87, compared to ¥4,251,106,914.16 at the beginning of the period, marking a growth of 2.63%[22] - Total liabilities increased to ¥2,208,531,367.27 from ¥2,156,717,598.24, reflecting a rise of 2.40%[22] - Shareholders' equity totaled ¥2,154,624,705.60, up from ¥2,094,389,315.92, indicating an increase of 2.87%[22] Cash Flow - The company reported a significant increase in cash flow from operating activities, with a net cash flow of ¥188,989,528.40, up by 324.74% year-to-date[5] - Cash flow from operating activities generated a net amount of ¥188,989,528.40, a significant recovery from a negative cash flow of ¥84,092,122.08 in the previous period[27] - The company reported a decrease in investment activity cash flow net amount to -¥71,623,264.49 from -¥170,713,006.91, showing an improvement[27] - Cash and cash equivalents increased to ¥513,408,299.19 from ¥476,961,197.20, reflecting a growth of 7.99%[20] - The cash and cash equivalents at the end of the period amounted to ¥473,662,221.40, up from ¥255,377,328.81[27] Shareholder Information - Total number of common shareholders at the end of the reporting period is 27,116[13] - The largest shareholder, Hunan Yujia Investment Management Co., Ltd., holds 24.59% of shares, totaling 95,904,214 shares, with 39,640,000 shares pledged[13] - The second-largest shareholder, Changsha Tingting Enterprise Management Consulting Partnership, holds 11.42% of shares, totaling 44,523,000 shares, with 14,000,000 shares pledged[13] - The largest shareholder, Dai Yuefeng, holds 10.02% of shares, totaling 39,086,611 shares, with 18,800,000 shares pledged[13] - The company has a total of 8,097,150 shares repurchased, representing 2.08% of the total share capital as of September 30, 2025[14] - The total number of restricted shares held by Dai Yuefeng is 29,314,958, which will be released six months after the end of his term[15] - The company has no preferred shareholders as of the reporting period[15] - The company has not reported any changes in the participation of major shareholders in margin financing and securities lending activities[15] Expenses - Research and development expenses rose by 30.47% to ¥74,942,262.46, indicating increased investment in innovation[11] - Management expenses increased by 30.90% to ¥192,531,528.33, primarily due to the need for cross-border collaboration and business support[11] - Research and development expenses rose to ¥74,942,262.46, an increase of 30.6% from ¥57,439,187.71[24] Corporate Governance - The company completed the election of the fourth board of directors on August 8, 2025[17] - The company revised its articles of association and related systems on July 22 and August 8, 2025, in compliance with legal requirements[16] Other Information - The company received government subsidies totaling ¥2,704,532.49 during the quarter, contributing to overall financial performance[7] - The company decided not to exercise the early redemption rights for the "Shuiyang Convertible Bonds" for the next six months[18] - The board will reassess the early redemption rights after February 27, 2026, if the conditions are triggered again[18] - The company did not undergo an audit for the third quarter financial report[28]

Market Overview - The cosmetics sector increased by 0.77% on October 29, with Marubi Biological leading the gains [1] - The Shanghai Composite Index closed at 4016.33, up 0.7%, while the Shenzhen Component Index closed at 13691.38, up 1.95% [1] Individual Stock Performance - Marubi Biological (603983) closed at 36.66, up 3.74% with a trading volume of 41,500 shares and a turnover of 150 million yuan [1] - Babi Co. (920123) closed at 18.06, up 3.56% with a trading volume of 23,700 shares and a turnover of 41.72 million yuan [1] - Shanghai Jahwa (600315) closed at 25.46, up 2.74% with a trading volume of 154,500 shares and a turnover of 392 million yuan [1] - Betaini (300957) closed at 45.83, up 0.57% with a trading volume of 33,400 shares and a turnover of 152 million yuan [1] - Other notable performances include Proya (603605) at 76.87, up 0.18%, and Water Sheep Co. (300740) at 22.14, up 0.09% [1] Fund Flow Analysis - The cosmetics sector experienced a net outflow of 89.37 million yuan from institutional investors and 51.47 million yuan from retail investors, while individual investors saw a net inflow of 141 million yuan [2] - The detailed fund flow for individual stocks shows that Shanghai Jahwa had a net outflow of 32.36 million yuan from institutional investors [3] - Marubi Biological had a net inflow of 4.95 million yuan from institutional investors, but a net outflow of 8.77 million yuan from retail investors [3]

Core Insights - The beauty and personal care industry experienced a net capital outflow of 238 million yuan today, with a decline of 1.51% in the sector [1] - Among the 29 stocks in the beauty and personal care sector, 5 stocks rose while 23 stocks fell, indicating a predominantly negative market sentiment [1] Capital Flow Summary - The top three stocks with the highest net capital outflow are Shanghai Jahwa, Zhongshun Jierou, and Shuiyang Co., with outflows of 615.02 million yuan, 582.59 million yuan, and 316.92 million yuan respectively [1] - The stock with the highest net capital inflow is Baiya Co., with an inflow of 6.32 million yuan, followed by Marubi Biological and Liangmian Needle, with inflows of 5.55 million yuan and 3.15 million yuan respectively [1] Stock Performance - Shanghai Jahwa saw a significant decline of 9.43% with a turnover rate of 4.43% and a net outflow of 615.02 million yuan [1] - Zhongshun Jierou and Shuiyang Co. also experienced notable declines of 8.74% and 1.65% respectively, with substantial net outflows [1]

Core Insights - The emergence of "plant callus" as a key term in the cosmetics industry is highlighted, with multiple extracts from rare plants like snow lotus and peony being registered with the National Medical Products Administration [1][2] - The technology of plant callus cultivation allows for controlled, soil-free production of active plant ingredients, addressing issues of supply stability and sustainability [1][9] - The trend indicates a shift towards "green manufacturing," positioning callus technology as a new productive force in China's beauty industry [1][8] Industry Developments - Since 2025, plant callus has rapidly gained attention in the cosmetics sector, with six related ingredients registered, five of which were completed in 2025 [2][3] - Notable companies involved in this trend include Water Sheep Co., Huaxi Kou, and innovative upstream firms like Weiming Shiguang and Baiyue Te [1][4][6] - The registration of snow lotus callus powder by Gu Yu brand marks a significant milestone in utilizing rare plants through cell culture technology [4][6] Technological Advancements - Plant callus technology is based on the plant's self-repair mechanism, producing undifferentiated cells that secrete beneficial compounds for skincare [12][13] - The cultivation methods include solid and liquid culture techniques, with liquid culture allowing for industrial-scale production [14][16] - The ability to control environmental factors in callus cultivation enables customized production of active ingredients, enhancing research efficiency and production stability [17][21] Market Implications - The technology addresses the instability of traditional plant supply chains, providing a consistent and high-quality source of active ingredients [9][20] - Companies like Water Sheep emphasize the importance of technological solutions to overcome raw material shortages and promote high-quality standards in the cosmetics industry [9][18] - The shift towards plant callus technology represents a sustainable and scalable production model, aligning with consumer expectations for environmentally friendly products [28][29] Future Directions - The industry is exploring three main pathways: upgrading existing raw materials, providing sustainable alternatives for endangered plants, and integrating technology with AI and synthetic biology [25][27][28] - The ongoing development of plant callus technology signifies a broader transition in the beauty industry towards resource-efficient and environmentally friendly practices [29]

Core Insights - The cosmetics sector experienced a decline of 0.72% on October 22, with LaFang JiaHua leading the drop [1] - The Shanghai Composite Index closed at 3913.76, down 0.07%, while the Shenzhen Component Index closed at 12996.61, down 0.62% [1] Market Performance - Qingdao Jinwang (002094) saw a closing price of 7.88, with an increase of 2.74% and a trading volume of 561,300 shares, amounting to 450 million yuan [1] - Other notable performers included Kesheng Co. (300856) with a closing price of 13.88, up 1.46%, and Yusong Co. (300132) at 6.52, up 1.40% [1] - LaFang JiaHua (603630) closed at 22.55, down 1.83%, with a trading volume of 39,800 shares and a turnover of 90.79 million yuan [2] Capital Flow - The cosmetics sector experienced a net outflow of 12.29 million yuan from institutional investors and 12.90 million yuan from retail investors, while there was a net inflow of 25.19 million yuan from individual investors [2] - The capital flow for individual stocks showed that Qingdao Jinwang had a net inflow of 30.74 million yuan from institutional investors, while LaFang JiaHua had a net outflow of 7.07 million yuan [3] - Other stocks like Kesheng Co. and Yusong Co. also experienced varying degrees of net inflow and outflow from different investor categories [3]

Core Insights - The cosmetics sector experienced a slight decline of 0.03% on October 21, with Lafang Jiahua leading the drop [1] - The Shanghai Composite Index closed at 3916.33, up 1.36%, while the Shenzhen Component Index closed at 13077.32, up 2.06% [1] Group 1: Stock Performance - Jinsheng New Material (300849) saw a significant increase of 7.74%, closing at 14.76 with a trading volume of 103,000 shares and a turnover of 148 million yuan [1] - Jiaheng Jiahua (300955) rose by 4.90%, closing at 30.62 with a trading volume of 45,700 shares and a turnover of 137 million yuan [1] - Qing Song Co. (300132) increased by 3.71%, closing at 6.43 with a trading volume of 266,600 shares and a turnover of 170 million yuan [1] - Lafang Jiahua (603630) declined by 2.67%, closing at 22.97 with a trading volume of 61,500 shares and a turnover of 141 million yuan [2] - Shanghai Jahwa (600315) fell by 1.85%, closing at 27.09 with a trading volume of 96,400 shares and a turnover of 262 million yuan [2] Group 2: Capital Flow - The cosmetics sector experienced a net outflow of 11.49 million yuan from institutional investors, while retail investors saw a net inflow of 19.36 million yuan [2] - The main capital inflow was observed in brands like Banlaya (603605) with a net inflow of 10.38 million yuan, while Jinsheng New Material (300849) had a net outflow of 11.78 million yuan [3] - Retail investors showed a significant net inflow in Furuida (600223) with 7.23 million yuan, while the outflow from institutional investors was 3.19 million yuan [3]