Financial Performance - The company reported a total revenue of 272 million RMB for the year 2018, which represents a year-on-year increase of 15% compared to 2017[19]. - The net profit attributable to shareholders for 2018 was 45 million RMB, reflecting a growth of 10% from the previous year[19]. - The company's operating revenue for 2018 was ¥2,245,338,324.15, representing a 36.38% increase compared to ¥1,646,399,943.91 in 2017[26]. - The net profit attributable to shareholders for 2018 was ¥130,716,137.51, a decrease of 17.53% from ¥158,494,165.95 in 2017[26]. - The net profit after deducting non-recurring gains and losses was ¥105,750,780.29, down 28.43% from ¥147,749,005.73 in 2017[26]. - The basic earnings per share for 2018 was ¥0.50, a decline of 35.90% from ¥0.78 in 2017[26]. - The company reported a net cash flow from operating activities of -¥35,422,125.06 in 2018, a significant decrease of 120.43% from ¥173,417,620.14 in 2017[26]. - The company achieved quarterly revenues of ¥381,801,472.80 in Q1, ¥598,947,664.19 in Q2, ¥625,348,100.73 in Q3, and ¥639,241,086.43 in Q4 of 2018[28]. - The net profit attributable to shareholders in Q4 was ¥20,550,373.30, down from ¥45,131,983.25 in Q3[28]. - The company achieved a revenue of 2,245.34 million yuan in 2018, representing a year-on-year growth of 36.4%, with main business revenue increasing by 35.1% to 2,215.19 million yuan[53]. - The net profit attributable to shareholders decreased by 17.5% to 1,307.2 million yuan, while the net profit excluding non-recurring gains and losses fell by 28.4% to 1,057.5 million yuan[53]. User Growth and Market Expansion - User data indicates a significant increase in active users, with a growth rate of 20% year-on-year, reaching a total of 1.5 million active users by the end of 2018[19]. - The company is focusing on expanding its market presence, particularly in e-commerce platforms, with a target to increase sales through Tmall and JD.com by 30% in 2019[19]. - Market expansion strategies include entering two new international markets in Southeast Asia by the end of 2019[19]. - The company plans to expand its international platform, adding new brands and categories, aiming to cover personal care, beauty, and high-end cosmetics sectors[111]. - The company is considering strategic acquisitions to enhance its market position, with a budget of 500 million yuan earmarked for potential deals[158]. Product Development and Innovation - New product development efforts have led to the launch of 10 new skincare products in 2018, contributing to a 25% increase in product line diversity[19]. - The company is investing in new technology for product formulation, with an allocated budget of 10 million RMB for R&D in 2019[19]. - The company has invested in R&D, establishing research centers in Shanghai and Changsha, and has been recognized as a "High-tech Enterprise" by the government[47]. - The company aims to enhance its core competitiveness by continuously improving skincare product R&D capabilities and innovating product formulations based on market trends and customer needs[169]. Financial Strategy and Investment - The company plans to invest ¥8 billion to build a global intelligent production base for facial masks, which is expected to generate an annual output value of ¥2 billion once completed[56]. - The company plans to invest ¥4.5 billion to build a new headquarters, which will include a research and development center and a national scientific laboratory, enhancing its operational capabilities[58]. - The total amount of investment in 2018 reached ¥1,650,000,000.00, a dramatic increase of 1,252.46% from ¥122,000,000.00 in the previous year[92]. - The company has established a fundraising management system to ensure effective use of raised funds, which will be stored in a dedicated account for regular monitoring[169]. Shareholder and Dividend Policies - The company plans to distribute a cash dividend of 0.00 RMB per 10 shares, with a capital reserve conversion of 5 shares for every 10 shares held[7]. - The cash dividend payout ratio for 2018 was 0.00%, indicating no cash dividends were distributed[127]. - The company’s profit distribution plan for 2018 is pending approval from the annual shareholders' meeting[130]. - The company aims to enhance stock liquidity and share operational results with shareholders while ensuring normal operations and long-term development[130]. - The company commits to a cash dividend of no less than 10% of the distributable profit for the year after legal reserves, provided there are no major investment plans or cash expenditures[151]. Risks and Compliance - Risks include reliance on commissioned processing, which may affect product quality and brand image if suppliers fail to meet standards[112]. - Quality control risks are significant, as any issues with raw materials or production processes could lead to consumer complaints and damage to the brand's reputation[113]. - The company faces management risks associated with rapid growth, requiring adjustments in strategic planning and internal controls to maintain operational effectiveness[114]. - The management emphasized the importance of maintaining compliance with regulatory requirements to avoid potential liabilities[158]. Corporate Governance and Related Party Transactions - The company has established detailed regulations regarding related party transactions to ensure fairness and timely disclosure, protecting the rights of other shareholders[148]. - The controlling shareholder has made irrevocable commitments to avoid any competition with the company's products and business operations[148]. - The company ensures that there are no significant undisclosed related party transactions with its controlling shareholder[151]. Operational Footprint and Infrastructure - The company has established several new subsidiaries in 2018, expanding its operational footprint[71]. - The company established a new subsidiary in Hong Kong, expanding its operational footprint in international trade[177]. - The company has a total of 2,102.58 square meters dedicated to factory operations in the Hunan Lihe Technology Park[200].

Financial Performance - Total assets reached ¥2,080,388,497.86, an increase of 142.61% compared to the end of the previous year[8] - Net assets attributable to shareholders increased by 155.26% to ¥1,378,191,257.97[8] - Revenue for the reporting period was ¥625,348,100.73, up 43.61% year-on-year[8] - Net profit attributable to shareholders was ¥45,131,983.25, a 3.63% increase compared to the same period last year[8] - The net profit after deducting non-recurring gains and losses decreased by 17.22% to ¥39,769,558.63[8] - The basic earnings per share was ¥0.17, down 19.05% year-on-year[8] - The weighted average return on net assets was 3.44%, a decrease of 6.17% compared to the previous year[8] - The net cash flow from operating activities was negative at -¥34,389,234.69, a decline of 132.74%[8] Shareholder Information - The company reported a total of 27,141 common shareholders at the end of the reporting period[12] - The largest shareholder, Hunan Yujia Investment Management Co., Ltd., holds 23.51% of the shares[12] Asset Management - Accounts receivable increased by 48.41% to ¥140,913,023.21 compared to the beginning of the period, mainly due to sales revenue growth[16] - Inventory rose by 160.12% to ¥719,749,077.66, primarily for stocking up ahead of the fourth quarter peak season[16] - Short-term borrowings increased by 40.37% to ¥27,516,800.00, primarily due to new working capital loans[16] Investment and Expansion Plans - The company plans to invest ¥8 billion to build a global intelligent production base for facial masks, expected to generate an annual output value of ¥2 billion upon completion[21] - A total investment of ¥4.5 billion is planned for the construction of the company's headquarters, which will enhance research and operational capabilities[22] - The company is in the process of a major asset restructuring, planning to acquire 60% of Beijing Maosi Trading Co. for ¥1,020 million, which is expected to enhance product variety and market share[20] - The company has announced plans to invest in a global intelligent mask production base in Changsha High-tech Industrial Development Zone, indicating a focus on expanding production capabilities[23] - The company has also secured state-owned land use rights for further investments, demonstrating a commitment to growth and expansion in its operational footprint[23] Financial Strategy and Compliance - The company has committed to not transferring or entrusting the management of its shares for a period of 36 months from the public offering, ensuring stability in shareholding during this period[24] - The company’s executives are restricted from transferring more than 25% of their shares annually while in office, promoting long-term commitment to the company[24] - The company has established a series of regulations to ensure fair pricing and compliance in related party transactions[28] - The company aims to minimize related party transactions and ensure the protection of minority shareholders' interests[28] - The company will disclose related party transactions in a timely manner to protect the rights of other shareholders[28] Research and Development - The company is investing heavily in R&D, with a budget increase of 15% for new technology development in 2019[25] - Research and development expenses increased by 30% year-on-year, focusing on new technology innovations in skincare products[27] - The company aims to enhance its core competitiveness by continuously improving skincare product R&D capabilities and innovating product formulas based on market trends and customer needs[34] Market Performance and User Engagement - User data showed an increase in active users, reaching 1.5 million, up from 1.2 million in the previous quarter, representing a growth of 25%[25] - The company provided a positive outlook for Q4 2018, projecting a revenue increase of 30% compared to Q3 2018[25] - New product launches are expected to contribute an additional 10% to overall revenue in the next quarter[25] Profit Distribution and Shareholder Returns - The company committed to a cash dividend of no less than 10% of the distributable profit for the year after legal reserves, provided there are no major investment plans or cash expenditures[29] - The company plans to distribute a cumulative profit of no less than 30% of the average annual distributable profit over the last three years since its listing[29] - The board will review the shareholder return plan at least every three years to consider adjustments based on shareholder feedback[30] Cash Flow and Financial Health - The cash inflow from operating activities for the period was CNY 1,560,515,503.14, an increase from CNY 1,152,491,318.90 in the previous period, representing a growth of approximately 35.4%[63] - The net cash flow from operating activities was negative at CNY -34,389,234.69, compared to a positive CNY 105,050,576.26 in the same period last year[63] - Cash inflow from investment activities totaled CNY 413,576,282.12, significantly up from CNY 30,879,746.63, marking an increase of approximately 1233.5%[65]

Financial Performance - Total revenue for the first half of 2018 reached ¥980,749,136.99, representing a 57.78% increase compared to ¥621,576,050.06 in the same period last year[19]. - Net profit attributable to shareholders was ¥65,033,780.96, up 19.05% from ¥54,628,879.13 in the previous year[19]. - Net cash flow from operating activities was ¥119,021,556.42, an increase of 14.05% compared to ¥104,358,821.21 in the same period last year[19]. - Total assets at the end of the reporting period amounted to ¥1,877,864,166.58, a 119.00% increase from ¥857,486,797.89 at the end of the previous year[19]. - Net assets attributable to shareholders reached ¥1,327,263,937.08, reflecting a 145.83% increase from ¥539,917,333.31 at the end of the previous year[19]. - Basic earnings per share decreased by 23.91% to ¥0.35 from ¥0.46 in the same period last year[19]. - The weighted average return on equity was 5.97%, down 7.52% from 13.49% in the previous year[19]. - The company reported a net profit excluding non-recurring gains and losses of ¥63,509,482.21, a slight increase of 3.43% from ¥61,405,190.95 in the previous year[19]. - The company reported a total profit for the first half of 2018 of CNY 82,718,483.93, compared to CNY 73,070,910.23 in the previous year, reflecting an increase of approximately 13.5%[157]. - The company incurred sales expenses of CNY 370,347,896.04, which is a significant rise from CNY 189,093,890.77 in the previous year, indicating an increase of about 96.1%[157]. Market and Product Development - The skincare market in China reached a size of 1866.66 billion, accounting for 52.62% of the total cosmetics market, with a compound annual growth rate of 8.02% from 2012 to 2017[30]. - The e-commerce channel for cosmetics saw sales growth rates of 26%, 40%, and 45% from 2015 to 2017, significantly outpacing offline channels[31]. - The company has established partnerships with over 3,000 Watsons stores and 400 Walmart locations, enhancing its offline presence[27]. - The company has increased its investment in product research and development, focusing on unique formulations and product upgrades to enhance consumer experience[31]. - The company has developed a strong brand presence with multiple brands, including "Yunifang" and "Huayao Flower," catering to different consumer segments[34]. - The company successfully signed exclusive agency agreements for KIKO and OGX brands, expanding its product offerings in the Chinese market[42]. - New product launches are expected to contribute an additional 200 million RMB in revenue by the end of 2018[83]. - The company is focusing on market expansion, targeting a 15% increase in market share in the next fiscal year[83]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[90]. Financial Management and Investments - The company completed a capital increase, raising total share capital from 16 million shares to 27.2 million shares[18]. - The company has reported an increase in prepaid marketing expenses, reflecting its commitment to brand promotion[32]. - The company invested CNY 760,000,000.00 during the reporting period, a significant increase of 1,420.00% compared to the previous year[56]. - The company reported investment income for the period of CNY 6,055,682.20, representing a 7.32% return from financial products[52]. - The company recorded an asset impairment of CNY 4,122,752.20, accounting for 4.98% of total assets due to inventory and receivables provisions[52]. - The company has established a fundraising management policy to ensure the legal and compliant use of raised funds, which will be deposited in a designated account[93]. Shareholder and Compliance Matters - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of its public offering[80]. - The company has established strict compliance measures for shareholders regarding share transfers and commitments[81]. - The company will not repurchase shares that were issued prior to the public offering[80]. - The company has committed to avoiding competition with its controlling shareholder's other businesses[86]. - The board will review the shareholder return plan at least every three years and adjust the dividend policy based on shareholder feedback[87]. - The company has committed to a profit distribution policy that aligns with regulatory requirements, ensuring the protection of investors' rights[93]. Operational Challenges and Risks - The company faces risks related to market demand fluctuations, particularly in the skincare sector, which is dependent on macroeconomic conditions and consumer purchasing power[71]. - The company has a high reliance on e-commerce platforms, with sales from Tmall and Vipshop accounting for 62.97% of total revenue in 2017, indicating potential risks if relationships with these platforms deteriorate[71]. - The company is expanding its offline sales channels but faces challenges due to limited experience in managing distributors across various retail formats[72]. - The company reported a significant increase in cash outflow related to investment activities, totaling ¥766,921,203.41, compared to ¥91,573,329.27 in the previous year[166]. Legal and Regulatory Compliance - The half-year financial report has not been audited[95]. - The company is currently involved in several legal disputes, with amounts involved including 1.2 million yuan, 566,700 yuan, and 150,000 yuan[98]. - The company has not undergone any bankruptcy restructuring during the reporting period[96]. - The company has not faced any media scrutiny during the reporting period[99]. - The company reported no related party transactions during the reporting period[102]. Future Outlook - The company provided a positive outlook for the second half of 2018, projecting a revenue growth rate of 20% to 25%[83]. - The company plans to enhance its online sales channels, aiming for a 40% increase in e-commerce revenue by the end of 2018[90]. - The company aims to enhance its profitability and operational efficiency by improving daily management and internal controls[93].

Financial Performance - Total revenue for the first half of 2018 reached ¥980,749,136.99, representing a 57.78% increase compared to ¥621,576,050.06 in the same period last year[19]. - Net profit attributable to shareholders was ¥65,033,780.96, up 19.05% from ¥54,628,879.13 year-on-year[19]. - Net cash flow from operating activities was ¥119,021,556.42, an increase of 14.05% compared to ¥104,358,821.21 in the previous year[19]. - Total assets at the end of the reporting period amounted to ¥1,877,864,166.58, a 119.00% increase from ¥857,486,797.89 at the end of the previous year[19]. - Net assets attributable to shareholders increased by 145.83% to ¥1,327,263,937.08 from ¥539,917,333.31 at the end of the previous year[19]. - Basic earnings per share decreased by 23.91% to ¥0.35 from ¥0.46 in the same period last year[19]. - The weighted average return on equity was 5.97%, down 7.52% from 13.49% in the previous year[19]. - The company reported a net profit after deducting non-recurring gains and losses of ¥63,509,482.21, a slight increase of 3.46% from ¥61,387,758.55 in the previous year[19]. - The company reported a total profit for the first half of 2018 of CNY 82,718,483.93, compared to CNY 73,070,910.23 in the same period last year, reflecting an increase of about 13.5%[157]. Market and Sales Strategy - The skincare market in China reached a size of 1866.66 billion, accounting for 52.62% of the total cosmetics market, with a compound annual growth rate of 8.02% from 2012 to 2017[30]. - The facial mask segment of the skincare market had a market size of 207.5 billion in 2017, with a compound annual growth rate of 15.8% from 2012 to 2017, indicating rapid growth[30]. - E-commerce sales in the cosmetics sector grew significantly, with year-on-year growth rates of 26%, 40%, and 45% from 2015 to 2017, indicating a shift towards online shopping[30]. - The company has established partnerships with over 3,000 Watsons stores and 400 Walmart locations, enhancing its offline presence[27]. - The company has a diverse brand portfolio, including "Yunifang," "Xiaomihu," and "Huayaohua," allowing it to target different consumer segments effectively[34]. - The company is focusing on market expansion, targeting an increase in market share by 5% in key regions[83]. - The company plans to enhance its online sales channels, expecting a 50% increase in e-commerce revenue by the end of 2018[83]. Investment and Capital Management - The company completed a capital increase, raising its total share capital from 160 million shares to 272 million shares[18]. - The company raised CNY 84,920.00 million through a public offering, with a net amount of CNY 78,248.01 million after deducting issuance costs[58]. - The company allocated CNY 20,464.91 million of the raised funds during the reporting period[58]. - The total investment during the reporting period was CNY 760,000,000.00, a significant increase of 1,420.00% compared to the previous year[56]. - The company has committed to improving its financing structure and increasing profitability through effective use of raised funds[93]. Research and Development - The company increased its R&D investment by 24.07% to CNY 22.09 million, reflecting a commitment to enhancing product development capabilities[47]. - The company has established a professional R&D team of over 100 personnel, focusing on various aspects of product development and quality control[41]. - Research and development investments increased by 30% in 2018, aimed at enhancing product innovation and technology[89]. - The company aims to enhance its core competitiveness by continuously improving skincare product R&D capabilities and innovating product formulas based on market trends and customer needs[92]. Shareholder and Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[79]. - The company plans to distribute cash dividends amounting to no less than 10% of the distributable profits for the year after legal reserves are deducted[86]. - The cumulative cash distribution over the first three years post-IPO will not be less than 30% of the average annual distributable profits[87]. - The board will review the shareholder return plan at least every three years and adjust the dividend policy based on shareholder feedback[87]. - The company has committed to avoiding competition with its controlling shareholder's other businesses[86]. Compliance and Governance - The company has established strict compliance measures for shareholders regarding share transfers and lock-up commitments[81]. - The company will ensure fair and transparent transactions with related parties to protect shareholder interests[86]. - The company has committed to strict adherence to legal and regulatory requirements regarding shareholding reductions[91]. - The financial report for the first half of 2018 has not been audited[145]. - The company confirms its ability to continue as a going concern for at least 12 months from the reporting date, with no significant issues affecting this capability[186]. Operational Efficiency - The management emphasized the importance of maintaining operational efficiency, targeting a reduction in costs by 10% in the upcoming quarters[83]. - The company is committed to improving operational efficiency and reducing operating costs to enhance business performance through internal process reengineering and system establishment[92]. - The company aims to enhance its profitability and operational efficiency by improving daily management and internal controls[93]. Risks and Challenges - The company faces risks related to market demand fluctuations, particularly in the skincare market, which may impact financial performance[71]. - The company has a significant reliance on e-commerce platforms, with revenue from Tmall and Vipshop accounting for 61.21%, 57.35%, and 62.97% of total revenue from 2015 to 2017[71]. - The company is expanding its offline sales channels, which presents risks due to limited experience in managing distributors[72]. Miscellaneous - The company has not engaged in any major asset restructuring during the reporting period, but it has applied for a suspension of its stock trading due to planning for asset purchases, starting from June 19, 2018[118]. - The company has not implemented any stock incentive plans or employee stock ownership plans during the reporting period[101]. - The company reported no related party transactions during the reporting period[102].

Financial Performance - Total revenue for the first quarter reached ¥381,801,472.80, representing a 42.14% increase compared to ¥268,603,527.24 in the same period last year[8] - Net profit attributable to shareholders was ¥29,337,758.43, up 19.81% from ¥24,487,585.36 year-on-year[8] - Operating revenue for the period grew by 42.14% year-on-year, amounting to ¥381,801,472.80, driven by steady business growth[21] - The company achieved operating revenue of 381.80 million yuan, a year-on-year increase of 42.14%[23] - The net profit attributable to shareholders was 29.34 million yuan, reflecting a year-on-year growth of 19.81%[23] - Total operating revenue for Q1 2018 was CNY 381.80 million, an increase of 42.2% compared to CNY 268.60 million in the same period last year[59] - Net profit for Q1 2018 reached CNY 29.40 million, representing a 21.5% increase from CNY 24.30 million in Q1 2017[60] Cash Flow and Assets - Net cash flow from operating activities improved significantly to ¥58,878,742.33, a 302.20% increase from a negative cash flow of ¥29,118,956.43 in the previous year[8] - The company's cash and cash equivalents increased by 315.03% from the beginning of the period, reaching ¥1,087,992,291.03, primarily due to the receipt of raised funds[19] - Accounts receivable decreased by 47.21% to ¥50,128,891.91, attributed to timely customer payments[20] - The total amount of raised funds is 782.48 million CNY, with 22.61 million CNY invested in the current quarter[43] - The cumulative amount of raised funds invested to date is 22.61 million CNY, representing 21.07% of the committed investment for the R&D and quality management center project[43] - The company reported a total cash and cash equivalents balance of CNY 1,087,992,291.03 at the end of the quarter, up from CNY 111,913,564.71 at the end of the previous period[68] Liabilities and Equity - Total assets at the end of the reporting period were ¥1,638,254,894.08, a 91.05% increase from ¥857,486,797.89 at the end of the previous year[8] - Net assets attributable to shareholders increased by 150.61% to ¥1,353,076,941.88 from ¥539,917,333.31[8] - The company's total liabilities decreased by 32.46% in estimated liabilities, reflecting a reduction in receivable balances[20] - The company's total liabilities decreased to approximately 284.41 million CNY from 316.84 million CNY, reflecting a reduction in financial obligations[53] - The company's equity attributable to shareholders rose to approximately 1.35 billion CNY from 539.92 million CNY, indicating strong retained earnings growth[54] Market and Operational Risks - The company faces risks related to market demand fluctuations, particularly in the skincare sector, which could impact financial performance[10] - The expansion into offline sales channels presents operational risks due to the company's relative inexperience in managing distributors[10] - The company has established subsidiaries in Hong Kong, Taiwan, and South Korea to support overseas business expansion, which is subject to local political and economic risks[10] - User experience is critical for the company's e-commerce operations, and any shortcomings could lead to decreased customer loyalty and sales[11] Strategic Plans and Investments - The company plans to enhance marketing channels, product development, and brand promotion to strengthen its market position[23] - The company intends to expand both domestic and international markets to become a leading skincare enterprise[23] - The company is investing 100 million RMB in R&D for new technologies aimed at enhancing user experience and product efficiency[30] - Market expansion plans include entering two new international markets by the end of 2018, targeting a 10% increase in overall market share[30] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 500 million RMB allocated for potential deals[30] Shareholder Commitments and Dividends - The board approved a profit distribution plan for 2017, proposing a cash dividend of 4.00 yuan per 10 shares, totaling 64 million yuan[25] - The company plans to distribute cash dividends amounting to no less than 10% of the distributable profits for the year, provided it achieves profitability and has no major investment plans or cash expenditures[34] - The company will not distribute profits to the controlling shareholder until all commitments are fulfilled if there are losses incurred by investors[32] - The company has committed to fulfilling all public commitments made during its initial public offering and will accept social supervision[36] Compliance and Governance - The company has established strict compliance measures for its shareholders regarding share transfers and commitments[28] - The company emphasizes the importance of independent directors in ensuring the fairness of related party transaction pricing[32] - The company will publicly explain any failure to fulfill stock price stabilization commitments and apologize to shareholders[31] - The management emphasized the importance of maintaining compliance with regulatory requirements to avoid potential penalties[37]