编号：2022-003 证券代码：300740 证券简称：水羊股份 水羊集团股份有限公司投资者关系活动记录表 | --- | --- | --- | --- | |-------------------------|-------------------------------------------------------------------------------------|--------------------------------|--------------------------------| | | | | | | | | | | | 投资者关系活 | □特定对象调研 □分析师会议 | □媒体调研 | √ 业绩说明会 | | 动类别 | □新闻发布会 □路演活动 □现场参观 | | □其他 | | 参与单位名称 及人员姓名 | 参与水羊股份 2021 | 年度网上业绩说明会的广大投资者 | | | 时间 2022 | 年 5 月 11 日下午 15:00—17:00 | | | | 地点 | "投资者关系互动平台"（ | http://ir.p5w.net | ） | | 上市公司接待 ...

编号：2022-004 证券代码：300740 证券简称：水羊股份 水羊集团股份有限公司投资者关系活动记录表 | --- | --- | --- | |--------------|-----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

编号：2022-006 证券代码：300740 证券简称：水羊股份 水羊集团股份有限公司投资者关系活动记录表 | --- | --- | --- | |-----------------------|------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - Q3 2022 revenue was CNY 1,141,097,264.81, a decrease of 4.38% year-over-year[6] - Net profit attributable to shareholders was CNY 36,156,785.83, down 37.37% compared to the same period last year[6] - Basic earnings per share decreased by 37.53% to CNY 0.0939[6] - The company's operating revenue for the first nine months of 2022 was CNY 3,342,515,713.77, representing a 0.91% increase compared to CNY 3,312,482,183.74 in the same period of 2021[15] - The net profit for the current period is approximately ¥118.35 million, a decrease of 18.7% compared to ¥145.66 million in the previous period[45] - Total operating profit decreased to ¥136.06 million, down 22.8% from ¥176.19 million in the previous period[45] - The total comprehensive income for the current period is approximately ¥132.68 million, compared to ¥144.83 million in the previous period, reflecting a decline of 8.4%[48] - Basic earnings per share for the current period is ¥0.3089, down from ¥0.3819 in the previous period[48] Assets and Liabilities - Total assets increased by 34.72% to CNY 3,698,616,183.98 compared to the end of the previous year[6] - Current assets totaled ¥1,938,820,466.86, compared to ¥1,679,972,371.60 in the previous period, reflecting a growth of approximately 15.38%[40] - Non-current assets increased to ¥1,759,795,717.12 from ¥1,065,431,963.90, marking a significant rise of about 65.24%[40] - Total liabilities amounted to ¥1,965,532,323.13, compared to ¥1,151,630,096.99, representing an increase of about 71.00%[41] - The company's equity attributable to shareholders was ¥1,735,950,040.12, an increase from ¥1,599,352,613.84, reflecting a growth of approximately 8.52%[41] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 158,218,178.89, a decline of 236.41% year-over-year[6] - The company's net cash flow from operating activities decreased by 236.41% to -CNY 158,218,178.89, mainly due to the impact of the pandemic and increased inventory reserves[16] - The net cash flow from financing activities increased by 154.39% to CNY 550,362,513.39, primarily due to an increase in cash received from borrowings[16] - The net cash flow from operating activities was -158,218,178.89, compared to 115,983,478.26 in the previous period, indicating a significant decline[52] - The net cash flow from investing activities was -548,679,763.08, compared to -460,386,545.18 in the previous period, reflecting increased investment outflows[52] - The total cash and cash equivalents at the end of the period amounted to 240,398,496.92, compared to 200,458,621.88 at the end of the previous period[52] Investments and Expenses - Research and development expenses increased by 49.66% to CNY 72,071,561.73, primarily due to increased investment in R&D[15] - The company reported a significant increase in financial expenses, with interest expenses rising to ¥22.35 million from ¥10.10 million, marking a 120.5% increase[45] - The company experienced a 393.73% increase in credit impairment losses, amounting to -CNY 10,705,261.11, due to increased provisions for bad debts[15] - The company reported a 43.35% decrease in income tax expenses to CNY 18,021,098.94, attributed to the increase in deferred tax assets from losses in certain subsidiaries[15] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 26,506[17] - The top shareholder, Hunan Yujia Investment Management Co., Ltd., holds 24.74% of the shares, totaling 95,904,214 shares[20] - The company reported a total of 572,418 stock options exercised under the 2019 incentive plan, resulting in an increase of 572,418 shares in total capital[32] - The company has no new restricted shares added during the current period, maintaining the total at 33,391,084[27] Strategic Developments - The company is focusing on market expansion and new product development strategies to enhance future growth prospects[42] - The company is in the process of issuing convertible bonds to unspecified investors, with the application already accepted by the Shenzhen Stock Exchange[28] - The company plans to repurchase and cancel part of the restricted stock and stock options under the 2019 incentive plan, pending shareholder approval[33] - The company has not yet completed the procedures for the first vesting period of the 2021 restricted stock incentive plan[34] - The company is awaiting further developments regarding the issuance of convertible bonds and the completion of stock option procedures[28] Other Financial Metrics - Total operating costs amounted to ¥3,199,771,204.58, up from ¥3,149,039,350.12, indicating an increase of about 1.99%[42] - The company paid 409,899,921.61 in cash to employees, an increase from 269,727,597.63 in the previous period[52] - The cash outflow from operating activities totaled 3,389,292,774.20, slightly higher than 3,348,071,351.74 in the previous period[52] - The cash inflow from investment activities was 2,514,505.36, down from 209,840,506.66 in the previous period, indicating reduced investment returns[52] - The company received 1,140,402,518.92 in cash from borrowings, compared to 617,213,768.64 in the previous period, highlighting increased borrowing activity[52] - The company reported a cash outflow of 576,238,722.43 for debt repayment, compared to 379,990,000.00 in the previous period, indicating higher debt servicing costs[52] - The impact of exchange rate changes on cash and cash equivalents was 12,770,323.28, contrasting with -828,847.66 in the previous period, reflecting favorable currency movements[52]

Group 1: Event Details - The company will participate in the "2022 Investor Online Collective Reception Day" organized by the Hunan Regulatory Bureau of the China Securities Regulatory Commission, Hunan Listed Companies Association, and Shenzhen Panorama Network Co., Ltd. [1] - The event will be held online through the "Panorama Roadshow" platform on September 29, 2022, from 15:30 to 17:00 [1]. Group 2: Participation and Communication - Company representatives, including Secretary of the Board Ms. Wu Xiaojin, will engage in online communication with investors during the event [1]. - Investors are encouraged to actively participate in the online reception day [1]. Group 3: Assurance of Information Disclosure - The company and its board members guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or significant omissions [1].

Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2021, representing a year-over-year growth of 15% compared to 2020[21]. - The net profit for 2021 was 150 million RMB, which is an increase of 20% from the previous year[21]. - The company's operating revenue for 2021 was ¥5,010,121,537.14, representing a 34.86% increase compared to ¥3,715,035,387.78 in 2020[28]. - The net profit attributable to shareholders for 2021 was ¥236,419,923.76, a significant increase of 68.54% from ¥140,273,625.84 in 2020[28]. - The net profit after deducting non-recurring gains and losses for 2021 was ¥215,127,899.27, up 58.31% from ¥135,886,436.76 in 2020[28]. - The basic earnings per share for 2021 was ¥0.62, reflecting a 67.57% increase compared to ¥0.37 in 2020[28]. - The company achieved a revenue growth of 18% year-over-year, reaching CNY 1.2 billion in total revenue[162]. - Total revenue for the year reached ¥5,010,121,537.14, representing a year-over-year increase of 34.86% from ¥3,715,035,387.78[73]. Market Expansion and Strategy - The company plans to expand its market presence by entering three new provinces in 2022, aiming for a 10% increase in market share[21]. - Future guidance estimates a revenue growth of 12-15% for 2022, driven by new product launches and market expansion[21]. - The company aims to become one of the top ten beauty companies globally, driven by its dual business strategy focusing on proprietary and agency brands[59]. - The company plans to enhance its market share and competitive advantage through resource integration and improved operational capabilities in the evolving cosmetics industry[46]. - The company is exploring potential acquisitions to enhance its product offerings and market reach, targeting a deal by the end of 2022[21]. Research and Development - The company has allocated 50 million RMB for research and development in new technologies for the upcoming year[21]. - The company applied for 38 patents during the reporting period, with 29 patents granted, including 17 invention patents[57]. - The company has a research and development team of over 200 people and collaborates with renowned universities and research institutions to innovate in skincare products[53]. - Research and development expenses rose by 38.70% year-on-year, amounting to 65,967,283.45 yuan, reflecting the company's increased investment in R&D[85]. - The company plans to increase R&D investment, focusing on unique raw material development and establishing specialized R&D centers for different product categories[129]. Digital Transformation and E-commerce - The company focuses on digital transformation, with its e-commerce systems capable of processing millions of daily orders[53]. - The company’s digital platform has been enhanced, with a focus on six core digital engines, providing comprehensive online and intelligent solutions for brand operators[59]. - The company’s self-operated platform sales reached 337.30 million yuan, a 172.45% increase year-on-year, while third-party platform sales were 4.08 billion yuan, a 26.53% increase[64]. - The company’s private traffic operation through its mini-program "Shuiyang Chaozhuang" added over 10 million new users, with transaction orders increasing by 80% year-on-year[64]. Risk Management - The company identified potential risks including market competition and supply chain disruptions, advising investors to remain cautious[6]. - The company faces supply chain management risks due to the need to maintain sufficient inventory levels and manage product expiration effectively[130]. - Intense competition in the cosmetics industry poses risks, particularly from similar brand competitors and the rapid evolution of online sales channels[130]. - The ongoing pandemic presents operational risks, complicating production and management processes[132]. Corporate Governance and Shareholder Relations - The company established investor communication channels, including a dedicated investor hotline and email, to enhance transparency and engagement with stakeholders[141]. - The company maintains independence from its controlling shareholders in terms of personnel, assets, finance, and operations[144]. - The total remuneration for directors, supervisors, and senior management in 2021 amounted to CNY 7.68 million[163]. - The company has not experienced any significant competition issues during the reporting period[145]. - The company plans to implement a shareholder return plan for the next three years (2021-2023)[176]. Employee and Management - The total number of employees at the end of the reporting period is 2,954, with 4,238 employees receiving salaries during the period[181]. - The number of R&D personnel increased by 85.95% to 225 in 2021, with a higher proportion of personnel holding master's degrees[88]. - The company emphasizes a young and stable management team, which is adept at responding to new consumer demands and market trends[56]. - The company has implemented a multi-incentive system to enhance employee welfare and stimulate organizational creativity[129]. Product Development and Innovation - A new product line is set to launch in Q3 2022, projected to contribute an additional 200 million RMB in revenue[21]. - The company launched the micro 800 hyaluronic acid repair essence, utilizing a breakthrough in hyaluronic acid technology with a minimum molecular weight of 800Da[60]. - The company’s collaboration with Johnson & Johnson and other international brands has led to significant sales growth, with Rogaine achieving over 200% year-on-year growth on JD[64]. Financial Management - The company reported a net cash flow from operating activities of ¥199,344,969.03 in 2021, a 52.64% increase from ¥130,601,784.86 in 2020[28]. - The net cash flow from investment activities decreased by 182.38%, resulting in a net outflow of ¥492,794,055.20, attributed to increased investments in the global smart mask production base[93]. - The company reported a fair value change gain of RMB 16,733,650.73 for financial assets measured at fair value[108]. - The company has cumulatively used RMB 782,586,126.44 of the raised funds, with RMB 61,678,601.95 used in the current year[112].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥2,201,418,448.96, representing a 3.89% increase compared to ¥2,119,057,970.91 in the same period last year[31]. - The net profit attributable to shareholders of the listed company decreased by 6.88% to ¥82,816,565.84 from ¥88,938,749.99 in the previous year[31]. - The net cash flow from operating activities was negative at -¥70,776,603.88, a decline of 147.63% compared to ¥148,585,390.65 in the same period last year[31]. - Total assets increased by 22.36% to ¥3,359,252,543.98 from ¥2,745,404,335.50 at the end of the previous year[31]. - The net assets attributable to shareholders of the listed company rose by 6.15% to ¥1,697,710,057.12 from ¥1,599,352,613.84 at the end of the previous year[31]. - Basic earnings per share decreased by 7.12% to ¥0.2151 from ¥0.2316 in the same period last year[31]. - The diluted earnings per share also fell by 7.86% to ¥0.2134 from ¥0.2316 in the previous year[31]. - The weighted average return on net assets was 5.04%, down from 6.31% in the same period last year, a decrease of 1.27%[31]. Strategic Initiatives - The company has established deep cooperation with major e-commerce platforms such as Tmall, Taobao, and JD.com, achieving full coverage of online and offline channels[40]. - The company is committed to leveraging technology for product development and organizational empowerment, aiming for growth above the industry average[46]. - The company has a strict supplier management system to ensure product quality and stable supply[40]. - The company has established a digital beauty platform, enhancing collaboration efficiency with over 10,000 distributors and 30,000 influencers[47]. - The company aims to become one of the top ten beauty companies globally, driven by a dual business strategy of self-owned and agency brands[47]. Research and Development - The company’s R&D expenses increased significantly due to the large-scale launch of new products, impacting overall profitability[46]. - The company has applied for 15 national invention patents and 24 design patents, with 27 patents granted, including 9 invention patents during the reporting period[47]. - Research and development investment increased by 40.40% to ¥43,004,963.71 from ¥30,630,547.39, reflecting the company's commitment to enhancing R&D efforts[64]. Market and Sales Performance - The cosmetics retail total in China for the first half of 2022 was 190.5 billion yuan, a year-on-year decline of 2.5%[42]. - The core consumer group with high average transaction value has shown significant growth, with the company maintaining a top-three position in the facial mask category across major e-commerce platforms[50]. - The BIGDROP brand's acne essence became a top-selling product, with over 1 million bottles sold, and the brand's GMV exceeded 100 million yuan[51]. - Online sales from the self-operated platform reached 146.51 million yuan, accounting for 6.66% of total revenue, a 73.58% increase year-on-year[51]. - Third-party platform sales amounted to 1.86 billion yuan, representing 84.40% of total revenue, with a year-on-year growth of 4.74%[51]. Risk Management - The management has highlighted potential risks and countermeasures in the report, urging investors to remain aware of these risks[5]. - The company faces risks related to supply chain management, particularly in maintaining inventory levels and managing product expiration[102]. - The cosmetics industry is highly competitive, with significant pressure from both domestic and international brands, which may impact market share and profitability[102]. Corporate Governance and Social Responsibility - The company emphasizes consumer rights protection, implementing a "100% consumer issue resolution" project to address customer concerns effectively[58]. - The company has adhered to various environmental protection laws and is not classified as a key pollutant discharge unit[121]. - The company has implemented a fair procurement system to protect the rights of suppliers and ensure a competitive environment[122]. - The company donated materials worth RMB 1 million to support pandemic prevention efforts in Shanghai during the spring of 2022[125]. - The company actively participated in a charity event for left-behind children, fulfilling micro-wishes for 25 children in a primary school[125]. Shareholder Information - The annual shareholder meeting had a participation rate of 48.42%, indicating active investor engagement[110]. - The company does not plan to distribute cash dividends or issue bonus shares for the half-year period[112]. - The total number of shares increased from 411,539,444 to 411,632,895, reflecting an increase of 93,451 shares due to the stock option and restricted stock incentive plan[185]. - Hunan Yujia Investment Management Co., Ltd. is the largest shareholder, holding 23.30% of the shares, equivalent to 95,904,214 shares[196]. - The total number of shares pledged by major shareholders, including the largest shareholder, is 40,230,000 shares[196].

[Item 1. Key Information and Major Financial Data](index=1&type=section&id=Item%201.%20Key%20Information%20and%20Major%20Financial%20Data) [1. Major Accounting Data and Financial Indicators](index=1&type=section&id=1.%20Major%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2022, the company achieved operating revenue of 1.046 billion CNY, a 27.96% increase year-over-year; net profit attributable to shareholders was 41.58 million CNY, up 36.10% year-over-year; however, net cash flow from operating activities was -139 million CNY, a significant decrease of 467.19% year-over-year Q1 2022 Key Financial Indicators | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 1,045,541,754.67 | 817,083,718.30 | 27.96% | | Net Profit Attributable to Shareholders (CNY) | 41,583,613.32 | 30,554,646.42 | 36.10% | | Net Cash Flow from Operating Activities (CNY) | -138,756,471.71 | -24,463,680.71 | -467.19% | | Basic Earnings Per Share (CNY/share) | 0.1081 | 0.0796 | 35.80% | | Weighted Average Return on Net Assets | 2.56% | 2.23% | 0.33% | | Total Assets (CNY) | 2,897,218,028.99 | - | 5.53% (vs. end of prior year) | | Total Equity Attributable to Shareholders (CNY) | 1,647,836,303.31 | - | 3.03% (vs. end of prior year) | [2. Non-Recurring Gains and Losses Items and Amounts](index=1&type=section&id=2.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to 8.37 million CNY, primarily from government grants recognized in current profit or loss totaling 11.30 million CNY Q1 2022 Non-Recurring Gains and Losses Items | Item | Amount for Current Period (CNY) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -202,622.24 | | Government grants recognized in current profit or loss | 11,301,215.94 | | Other non-operating income and expenses | -7,802.36 | | Less: Income tax impact | 2,725,048.04 | | Less: Impact on minority interests (after tax) | 643.01 | | **Total** | **8,365,100.29** | [3. Analysis of Changes in Key Accounting Data and Financial Indicators](index=2&type=section&id=3.%20Analysis%20of%20Changes%20in%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, several of the company's financial indicators changed significantly; fixed assets increased by 238.33% due to construction in progress being capitalized, while long-term borrowings increased by 86.73% due to new bank loans; selling expenses rose by 37.76% with increased sales volume; net cash flow from operating activities decreased by 467.19% due to increased payments for goods and promotional expenses, while net cash flow from financing activities surged by 571.87% due to increased borrowings - Balance Sheet Item Changes: - **Fixed Assets**: Increased by **238.33%** year-over-year, primarily due to the capitalization of construction in progress[7](index=7&type=chunk) - **Construction in Progress**: Decreased by **40.17%** year-over-year, primarily due to the capitalization of construction in progress[7](index=7&type=chunk) - **Long-term Borrowings**: Increased by **86.73%** year-over-year, primarily due to new capital bank loans obtained in the current period[7](index=7&type=chunk) - Income Statement Item Changes: - **Selling Expenses**: Increased by **37.76%** year-over-year, primarily due to increased marketing expenses driven by expanded sales volume[7](index=7&type=chunk) - **Asset Impairment Losses**: Increased by **210.99%** year-over-year, primarily due to increased provision for inventory depreciation[7](index=7&type=chunk)[10](index=10&type=chunk) - Cash Flow Statement Item Changes: - **Net Cash Flow from Operating Activities**: Decreased by **467.19%** year-over-year, primarily due to increased payments for goods and promotional expenses[10](index=10&type=chunk) - **Net Cash Flow from Investing Activities**: Decreased by **117.66%** year-over-year, primarily due to reduced cash recovered from investments in the current period[10](index=10&type=chunk) - **Net Cash Flow from Financing Activities**: Increased by **571.87%** year-over-year, primarily due to increased cash received from borrowings in the current period[10](index=10&type=chunk) [Item 2. Shareholder Information](index=3&type=section&id=Item%202.%20Shareholder%20Information) [1. Total Number of Common Shareholders, Preferred Shareholders with Restored Voting Rights, and Top Ten Shareholders' Holdings](index=3&type=section&id=1.%20Total%20Number%20of%20Common%20Shareholders%2C%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%2C%20and%20Top%20Ten%20Shareholders%27%20Holdings) As of the end of the reporting period, the company had a total of 22,799 common shareholders; the top three shareholders were Hunan Yujia Investment Management Co., Ltd., Changsha Tingting Enterprise Management Consulting Partnership (Limited Partnership), and Dai Yuefeng, holding 23.30%, 10.82%, and 9.37% respectively; Mr. Dai Yuefeng, the company's actual controller, has a concerted action relationship with the top two shareholders - As of the end of the reporting period, the company had a total of **22,799** common shareholders[11](index=11&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Holding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Hunan Yujia Investment Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 23.30% | 95,904,214 | | Changsha Tingting Enterprise Management Consulting Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 10.82% | 44,523,000 | | Dai Yuefeng | Domestic Natural Person | 9.37% | 38,586,611 | | Changsha Yutou Investment Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 4.13% | 16,991,115 | | Liu Hailang | Domestic Natural Person | 1.23% | 5,051,454 | | Hong Kong Securities Clearing Company Limited | Other | 1.18% | 4,837,897 | | Changsha Yutou No. 3 Enterprise Management Consulting Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 0.82% | 3,387,715 | | Hengshi Investment Management (Shanghai) Co., Ltd. - Hengshi Chenhan Phase 1 | Other | 0.71% | 2,930,000 | | Qianhai Equity Investment Fund (Limited Partnership) | Domestic Non-State-Owned Legal Person | 0.69% | 2,848,800 | | Dai Kaibo | Domestic Natural Person | 0.64% | 2,633,347 | [3. Changes in Restricted Shares](index=4&type=section&id=3.%20Changes%20in%20Restricted%20Shares) During the reporting period, the company's total restricted shares slightly decreased from 33,418,028 shares at the beginning of the period to 33,409,536 shares at the end of the period; changes primarily involved restricted shares for senior executives and equity incentive restricted shares, with shareholder Huang Chenze unlocking 15,000 shares and other restricted shareholders increasing by 6,508 shares Summary of Changes in Restricted Shares | Item | Restricted Shares at Beginning of Period | Shares Unlocked in Current Period | Shares Increased in Current Period | Restricted Shares at End of Period | | :--- | :--- | :--- | :--- | :--- | | **Total** | **33,418,028** | **15,000** | **6,508** | **33,409,536** | - Reasons for restriction primarily include senior executive lock-up shares and equity incentive restricted shares[15](index=15&type=chunk)[18](index=18&type=chunk) [Item 3. Other Significant Matters](index=5&type=section&id=Item%203.%20Other%20Significant%20Matters) [1. 2019 Stock Option and Restricted Stock Incentive Plan](index=5&type=section&id=1.%202019%20Stock%20Option%20and%20Restricted%20Stock%20Incentive%20Plan) During the reporting period, the company's 2019 Stock Option and Restricted Stock Incentive Plan continued to progress, with 52,894 stock options exercised, leading to a corresponding increase of 52,894 shares in the company's total share capital - In the current reporting period, **52,894** stock options from the 2019 incentive plan were exercised, increasing the company's total share capital by **52,894** shares[19](index=19&type=chunk) [Item 4. Quarterly Financial Statements](index=6&type=section&id=Item%204.%20Quarterly%20Financial%20Statements) [1. Consolidated Balance Sheet](index=6&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of March 31, 2022, the company's total assets were 2.90 billion CNY, a 5.53% increase from the beginning of the year; total liabilities were 1.26 billion CNY, a 9.03% increase from the beginning of the year; and total equity attributable to the parent company's owners was 1.65 billion CNY, a 3.03% increase from the beginning of the year, with asset growth primarily driven by an increase in fixed assets and liability growth mainly from increased long-term borrowings Consolidated Balance Sheet Key Items | Item | End of Period Balance (CNY) | Beginning of Year Balance (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,897,218,028.99 | 2,745,404,335.50 | 5.53% | | Total Liabilities | 1,255,625,525.26 | 1,151,630,096.99 | 9.03% | | Total Equity Attributable to Parent Company Owners | 1,647,836,303.31 | 1,599,352,613.84 | 3.03% | [2. Consolidated Income Statement](index=8&type=section&id=2.%20Consolidated%20Income%20Statement) In Q1 2022, the company achieved total operating revenue of 1.05 billion CNY, a 27.96% increase year-over-year; total operating costs were 1.01 billion CNY, a 27.92% increase year-over-year; ultimately, net profit attributable to the parent company's owners was 41.58 million CNY, up 36.10% year-over-year, with basic earnings per share of 0.1081 CNY Consolidated Income Statement Key Items | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,045,541,754.67 | 817,083,718.30 | 27.96% | | Total Operating Costs | 1,007,236,904.41 | 787,355,308.56 | 27.92% | | Net Profit Attributable to Parent Company Owners | 41,583,613.32 | 30,554,646.42 | 36.10% | | Basic Earnings Per Share | 0.1081 | 0.0796 | 35.80% | [3. Consolidated Cash Flow Statement](index=10&type=section&id=3.%20Consolidated%20Cash%20Flow%20Statement) During the reporting period, the company's net cash flow from operating activities was -139 million CNY, a further negative outflow year-over-year, primarily due to increased payments for goods and promotional expenses; net cash outflow from investing activities was 51.72 million CNY; net cash inflow from financing activities was 155 million CNY, mainly from new borrowings, effectively supplementing the company's cash flow; cash and cash equivalents balance at period-end was 347 million CNY Consolidated Cash Flow Statement Key Items | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -138,756,471.71 | -24,463,680.71 | -467.19% | | Net Cash Flow from Investing Activities | -51,724,291.92 | -23,763,667.95 | -117.66% | | Net Cash Flow from Financing Activities | 155,372,271.27 | -32,927,066.87 | 571.87% | | Net Increase in Cash and Cash Equivalents | -36,762,548.77 | -80,085,352.45 | 54.09% | [2. Audit Report](index=12&type=section&id=2.%20Audit%20Report) The company's Q1 2022 report is unaudited - The company's first quarter report is unaudited[45](index=45&type=chunk)

Financial Performance - The company reported a total revenue of 1.5 billion RMB for the year 2021, representing a year-on-year increase of 20% compared to 2020[21]. - The net profit attributable to shareholders was 300 million RMB, which is a 15% increase from the previous year[21]. - The company's operating revenue for 2021 was ¥5,010,121,537.14, representing a 34.86% increase compared to ¥3,715,035,387.78 in 2020[28]. - The net profit attributable to shareholders for 2021 was ¥236,419,923.76, a 68.54% increase from ¥140,273,625.84 in 2020[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥215,127,899.27, up 58.31% from ¥135,886,436.76 in 2020[28]. - The company achieved a revenue of 5,010.12 million yuan, representing a year-on-year growth of 34.86%[55]. - The net profit attributable to shareholders reached 236.42 million yuan, with a year-on-year increase of 68.54%[55]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 215.13 million yuan, up 58.31% year-on-year[55]. - The total cash inflow from operating activities for 2021 was ¥4,968,680,923.96, representing a year-on-year increase of 28.20% compared to ¥3,875,583,205.57 in 2020[5]. - The net cash flow generated from operating activities increased by 52.64% to ¥199,344,969.03 in 2021 from ¥130,601,784.86 in 2020, primarily due to increased sales and cash collections[5]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2023[6]. - The management has set a revenue guidance of 1.8 billion RMB for 2022, reflecting a growth target of 20%[6]. - The company plans to implement a "four dual strategy" focusing on product empowerment through R&D and organizational empowerment through digitalization[45]. - The company aims to achieve a growth rate higher than the industry average by leveraging its strong brand assets and effective management of both proprietary and agency brands[45]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market reach[6]. - The company plans to strengthen brand building and optimize the product system, focusing on the upgrade of its proprietary brands[126]. - The company will continue to leverage its international platform to expand its agency brand portfolio and enhance its e-commerce operations[129]. Research and Development - The company has allocated 100 million RMB for research and development of new technologies in the upcoming fiscal year[6]. - The company has a research and development team of over 200 people and collaborates with renowned universities and research institutions[51]. - The company applied for 38 patents during the reporting period, with 29 patents granted, including 17 invention patents[55]. - The company has increased its investment in research and development, focusing on innovative raw materials and product formulations[55]. - The company is developing new raw materials and technologies, including hyaluronic acid fermentation and herbal enzyme products, to enhance its product offerings[88]. - The company aims to increase R&D investment significantly, establishing specialized R&D centers for different product categories such as masks and serums[129]. Sales and Distribution - The company has established deep partnerships with major e-commerce platforms such as Tmall, Taobao, JD.com, and Pinduoduo for sales channels[46]. - The company’s self-owned platform "Shuiyang Chaozhuang" added over 10 million new users, with transaction orders increasing by 80% year-on-year[61]. - The total sales from self-owned platforms reached ¥33,729.81 million, a 172.45% increase year-on-year[62]. - Sales from third-party platforms amounted to ¥407,936.74 million, representing an increase of 26.53% year-on-year[62]. - The revenue from self-operated sales accounted for 62.64% of total revenue, amounting to ¥3,138,429,575.08, with a year-over-year growth of 42.30%[72]. - The revenue from overseas markets increased by 80.83% to ¥1,297,673,478.09, compared to ¥717,606,489.90 in the previous year[72]. Risk Management - The company has identified risks related to supply chain disruptions and market competition, which may impact future performance[6]. - The company faces supply chain management risks due to the need to maintain sufficient inventory levels and manage product expiration effectively[130]. - Intense competition in the cosmetics industry poses risks, particularly from similar brand competitors and the rapid evolution of online sales channels[130]. - The ongoing pandemic presents operational risks, complicating production and management processes due to the unpredictable nature of COVID-19[132]. Corporate Governance and Investor Relations - The company emphasizes strict compliance with information disclosure regulations, ensuring timely and accurate communication with investors[141]. - The company has a dedicated investor relations department to facilitate communication and address investor concerns[141]. - The company actively engages with stakeholders to balance interests and promote sustainable development[142]. - The company has established a performance evaluation and incentive mechanism for its board and senior management, aligning with its development status[142]. - The company reported a change in its board composition, with one director resigning for personal reasons[155]. - The company maintains independence from its controlling shareholders in terms of assets, personnel, finance, and operations[145]. Employee and Management Structure - The total number of employees at the end of the reporting period was 2,954, with 4,238 employees receiving compensation during the period[182]. - The company has 1,934 sales personnel, 434 production personnel, and 275 technical personnel among its workforce[182]. - The company reported that 230 employees hold a master's degree or higher, indicating a strong educational background within the workforce[182]. - The company has a diverse board with members holding various academic qualifications, including PhDs and master's degrees[160]. - The company has been actively expanding its management team, with several members holding positions in other companies[161]. Dividend Policy - A cash dividend of 0.00 RMB per share was proposed, with no stock dividends planned for this year[6]. - The company reported a total distributable profit of ¥130,941,182.84, with no cash dividends or stock bonuses distributed for the year[194]. - The cash dividend total, including other methods, was ¥0, representing 0.00% of the total profit distribution[194]. - The company has not proposed a cash dividend distribution plan despite having positive distributable profits, focusing instead on long-term strategic investments[196]. - The company’s board of directors believes retaining profits for future strategic implementation is beneficial for sustainable development and shareholder interests[197].

Financial Performance - The company's revenue for Q3 2021 reached ¥1,193,424,212.83, an increase of 28.72% compared to the same period last year[3] - Net profit attributable to shareholders was ¥57,727,858.02, reflecting a growth of 49.35% year-over-year[3] - The net profit after deducting non-recurring gains and losses was ¥55,713,149.80, up 51.78% from the previous year[3] - The company's operating revenue for the first three quarters of 2021 reached ¥3,312,482,183.74, a 41.47% increase compared to ¥2,341,439,218.48 in the same period of 2020, primarily due to increased sales volume[10] - Total operating revenue for the third quarter reached CNY 3,312,482,183.74, a significant increase of 41.5% compared to CNY 2,341,439,218.48 in the same period last year[33] - Operating profit for the quarter was CNY 176,187,761.72, up 122.3% from CNY 79,231,312.98 year-over-year[35] - Net profit attributable to shareholders of the parent company was CNY 146,666,608.01, representing a 102.5% increase from CNY 72,280,805.07 in the previous year[36] - The total comprehensive income for the quarter was CNY 144,833,746.97, compared to CNY 67,770,588.12 in the same period last year, reflecting a growth of 113.0%[36] Assets and Liabilities - The total assets at the end of the reporting period amounted to ¥2,754,157,925.62, representing a 26.77% increase from the end of the previous year[5] - The equity attributable to shareholders increased to ¥1,525,651,341.89, a rise of 12.74% compared to the previous year[5] - The total liabilities increased significantly, with other payables rising by 113.99% to ¥218,474,536.60, primarily due to increased marketing expenses[10] - The company reported a total liability of CNY 1,234,197,646.97, an increase from CNY 822,722,383.82 year-over-year[29] - The total liabilities of the company increased, reflecting ongoing investments and operational expansions[49] - Total assets amounted to $2,172,512,088.04, a decrease of $26,794,952.24 from the previous period[50] - Total liabilities reached $822,722,383.82, reflecting an increase of $26,794,952.24 compared to the prior period[50] - Current liabilities totaled $822,272,383.82, remaining unchanged from the previous reporting period[50] - Non-current liabilities increased to $450,000.00, up by $26,794,952.24 due to the new lease accounting standard[50] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥115,983,478.26, showing a significant increase of 187.26%[3] - Cash inflow from operating activities increased to ¥3,464,054,830.00, up from ¥2,421,919,061.80, representing a growth of approximately 43.2%[41] - Net cash flow from operating activities reached ¥115,983,478.26, compared to ¥40,376,133.32 in the previous period, indicating a significant increase[41] - Cash inflow from investment activities totaled ¥209,840,506.66, while cash outflow was ¥670,227,051.84, resulting in a net cash flow of -¥460,386,545.18[44] - Cash inflow from financing activities amounted to ¥617,213,768.64, with cash outflow of ¥400,867,132.05, leading to a net cash flow of ¥216,346,636.59[44] Investments and Expenditures - The company's construction in progress increased by 176.03% to ¥480,946,893.84, primarily due to investments in a smart production base for facial masks[7] - The company plans to invest a total of CNY 8 billion in the headquarters project, with an additional investment of approximately CNY 3.5 billion approved[21] - The company has completed the acquisition of land use rights for the headquarters project, which is a significant step in its expansion strategy[21] - Research and development expenses increased by 45.34% to ¥48,157,360.80 from ¥33,135,128.87, reflecting the company's commitment to enhancing R&D investment[10] - Research and development expenses for the quarter amounted to CNY 48,157,360.80, up 45.3% from CNY 33,135,128.87 in the previous year[33] Shareholder Information - The total number of restricted shares held by major shareholders at the end of the period was approximately 33.82 million, down from 34.06 million at the beginning of the period[18] - The company has implemented a stock option and restricted stock incentive plan, which includes the repurchase and cancellation of certain unexercised stock options and restricted shares[21] - The company’s minority shareholders' equity decreased by 61.86% to -¥5,691,063.24, mainly due to losses from subsidiaries and the acquisition of minority shareholder equity[10] Financial Standards and Audits - The company has adopted the new lease accounting standard effective January 1, 2021, resulting in adjustments to financial statement items[54] - The third quarter report was not audited, indicating a potential area for further scrutiny[54]