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]

Core Viewpoint - Water Sheep Co., Ltd. has shown significant stock performance with a year-to-date increase of 77.84%, despite a slight decline of 0.17% in the last five trading days [1] Group 1: Stock Performance - As of October 20, Water Sheep's stock price reached 23.51 CNY per share, with a market capitalization of 9.169 billion CNY [1] - The stock has experienced a 6.04% increase over the last 20 days and a 43.70% increase over the last 60 days [1] - The company has appeared on the trading leaderboard once this year, with a net buy of 24.4889 million CNY on May 28 [1] Group 2: Financial Performance - For the first half of 2025, Water Sheep reported a revenue of 2.5 billion CNY, reflecting a year-on-year growth of 9.02%, and a net profit of 123 million CNY, up 16.54% [2] - Cumulative cash dividends since the A-share listing amount to 142 million CNY, with 77.8142 million CNY distributed over the past three years [3] Group 3: Shareholder Information - As of September 10, the number of shareholders for Water Sheep stood at 27,000, with an average of 13,296 circulating shares per person [2] - Notable new shareholders include BlackRock China New Horizons Mixed A and Hong Kong Central Clearing Limited, holding 2.6 million shares and 2.5239 million shares respectively [3]

Group 1 - The cosmetics sector experienced a significant increase of 3.35% on October 15, with Shuiyang Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 3912.21, up 1.22%, while the Shenzhen Component Index closed at 13118.75, up 1.73% [1] - Major stocks in the cosmetics sector showed notable price increases, with Shuiyang Co., Ltd. rising by 8.45% to a closing price of 25.03 [1] Group 2 - The net inflow of main funds in the cosmetics sector was 219 million yuan, while retail investors saw a net outflow of 222 million yuan [1] - Shanghai Jahwa's main fund net inflow was 85.02 million yuan, with a retail net outflow of 66.90 million yuan [2] - Shuiyang Co., Ltd. had a main fund net inflow of 46.76 million yuan, but a retail net outflow of 69.20 million yuan [2]

Group 1 - The beauty and personal care sector is experiencing significant growth, with Shanghai Jahwa reaching its daily limit increase [1] - Shuiyang Co., Ltd. has seen an increase of over 8% in its stock price [1] - Other companies such as Kesi Co., Jiaheng Jiahua, Jinbo Biotechnology, and Babi Co. are also witnessing stock price increases [1]

Core Insights - The cosmetics sector experienced a slight increase of 0.31% on October 14, with Shanghai Jahwa leading the gains [1] - The Shanghai Composite Index closed at 3865.23, down 0.62%, while the Shenzhen Component Index closed at 12895.11, down 2.54% [1] Company Performance - Shanghai Jahwa (600315) closed at 26.59, up 5.10%, with a trading volume of 102,700 shares and a transaction value of 270 million yuan [1] - Lafang (603630) closed at 24.65, up 4.05%, with a trading volume of 90,200 shares and a transaction value of 221 million yuan [1] - Qingdao Kingway (002094) closed at 7.97, up 1.92%, with a trading volume of 413,400 shares and a transaction value of 329 million yuan [1] - Other notable performers include Bawei (920123) at 17.83 (+1.54%) and Jinsong New Materials (300849) at 13.53 (+0.97%) [1] Fund Flow Analysis - The cosmetics sector saw a net outflow of 13.28 million yuan from institutional investors, while retail investors experienced a net outflow of 46.69 million yuan [2] - Conversely, speculative funds recorded a net inflow of 59.98 million yuan [2] Individual Stock Fund Flow - Shanghai Jahwa had a net inflow of 29.86 million yuan from institutional investors, while retail investors saw a net outflow of 24.90 million yuan [3] - Lafang recorded a net inflow of 21.89 million yuan from institutional investors, with retail investors experiencing a net outflow of 21.61 million yuan [3] - Qingdao Kingway had a net inflow of 16.80 million yuan from institutional investors, while retail investors saw a net outflow of 18.67 million yuan [3]