Financial Performance - The company reported a revenue of RMB 500 million for the first half of 2022, representing a year-on-year increase of 25%[2]. - The company has set a revenue guidance of RMB 1.2 billion for the full year 2022, indicating a projected growth of 20%[2]. - The company's operating revenue for the reporting period was ¥632,365,870.23, representing a 30.00% increase compared to ¥486,418,800.78 in the same period last year[26]. - The net profit attributable to shareholders decreased by 17.02% to ¥104,972,998.49 from ¥126,502,821.20 year-on-year[26]. - The net profit after deducting non-recurring gains and losses was ¥96,169,951.90, down 16.21% from ¥114,774,879.02 in the previous year[26]. - The company's revenue for the reporting period reached ¥632,365,870.23, representing a 30.00% increase compared to ¥486,418,800.78 in the same period last year[73]. - Net profit for the first half of 2022 was ¥112,297,874.01, a decrease of 19% from ¥138,535,995.62 in the previous year[198]. User Growth and Market Expansion - User data showed a growth in active users to 1.2 million, up 15% compared to the previous period[2]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2023[2]. - The company reported a 230% year-on-year GMV growth on Pinduoduo and a 90% growth on Douyin, indicating strong performance in these channels despite a challenging market environment[50]. Product Development and R&D - New product launches contributed to a 30% increase in sales volume in Q2 2022[2]. - Research and development expenses increased by 40% to RMB 50 million, focusing on cloud-native technologies[2]. - Management and R&D expenses rose to 47.463 million yuan and 21.159 million yuan respectively, marking increases of 39% and 109.74% year-on-year, reflecting the company's commitment to organizational and technological development[51]. - Research and development expenses increased to ¥21,158,770.55, compared to ¥10,088,118.35 in the previous year, indicating a 109% rise in investment in innovation[198]. Financial Position and Cash Flow - The net cash flow from operating activities improved by 34.59%, reaching -¥40,113,113.58 compared to -¥61,324,453.60 in the same period last year[27]. - The total assets at the end of the reporting period were ¥3,340,008,836.90, a decrease of 2.39% from ¥3,421,773,810.27 at the end of the previous year[27]. - The company's cash and cash equivalents decreased to ¥1,298,484,003.42, down from ¥1,526,121,386.53, a decline of 5.72% due to cash outflows from investment and financing activities[79]. - The company's current assets decreased to CNY 2,125,288,555.44 from CNY 2,283,283,545.66, reflecting a decline of approximately 6.9%[190]. Operational Efficiency and Strategy - The company has implemented a Six Sigma approach to optimize operational processes, improving efficiency and effectiveness in e-commerce operations[67]. - Automation tools have been introduced across 105 execution nodes, achieving a 20%-30% increase in operational efficiency[68]. - The company has developed a one-stop service capability covering the entire online brand management process, providing multi-dimensional value-added services to clients[66]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[118]. - The company completed a private placement of 22,310,037 shares at a price of 40.13 RMB per share, raising a total of 895,301,784.81 RMB[155]. - The total number of shareholders at the end of the reporting period is 25,541[174]. - The largest shareholder, Hangzhou Yiwang Yichuang Brand Management Co., Ltd., holds 35.09% of the total shares, amounting to 83,757,996 shares[174]. Risks and Challenges - The management highlighted risks related to market competition and regulatory changes, emphasizing the need for strategic adjustments[2]. - The e-commerce industry remains competitive, with risks related to market environment and the need for timely strategy adjustments to maintain competitive advantages[108]. - Stock price volatility is influenced by macroeconomic conditions and market supply-demand dynamics, posing risks to investors even with stable company operations[112]. Environmental and Compliance - The company has not faced any significant environmental penalties during the reporting period and is not classified as a key pollutant discharge unit[126]. - The company has implemented measures to strengthen environmental supervision and management, ensuring compliance with environmental protection policies[126]. - There were no major litigation or arbitration matters during the reporting period[135].

Financial Performance - The company's revenue for Q1 2022 was CNY 266,416,289.63, representing a 19.58% increase compared to CNY 222,799,411.29 in the same period last year[4]. - The net profit attributable to shareholders decreased by 2.38% to CNY 51,881,019.01 from CNY 53,145,434.60 year-on-year[4]. - The net profit after deducting non-recurring gains and losses increased by 3.93% to CNY 51,084,575.22 compared to CNY 49,154,276.97 in the previous year[4]. - The total revenue for the first quarter was CNY 266,416,289.63, an increase of 19.6% compared to CNY 222,799,411.29 in the previous year[37]. - Net profit for the period was CNY 55,561,922.00, a decrease of 5.0% from CNY 58,939,070.04 in the same quarter last year[38]. - The total comprehensive income for the period was CNY 56,346,974, a decrease from CNY 59,515,472 in the previous period[39]. - Basic and diluted earnings per share were both CNY 0.22, down from CNY 0.25 in the previous period[39]. Cash Flow and Assets - The company's cash flow from operating activities showed a significant decline, with a net outflow of CNY 113,566,287.59, a decrease of 265.21% from CNY -31,095,807.81 in the same period last year[4]. - Cash inflows from operating activities totaled CNY 500,695,854.47, compared to CNY 418,090,574.12 in the previous period, representing an increase of approximately 19.7%[41]. - Cash outflows from operating activities amounted to CNY 614,262,142.06, up from CNY 449,186,381.93, indicating a rise of about 37%[42]. - The net cash flow from operating activities was negative at CNY -113,566,287.59, worsening from CNY -31,095,807.81 in the previous period[42]. - Cash and cash equivalents at the end of the period were CNY 1,330,248,041.78, down 12.8% from CNY 1,526,121,386.53 at the beginning of the year[34]. - Total assets at the end of the reporting period were CNY 3,361,695,140.55, down 1.76% from CNY 3,421,773,810.27 at the end of the previous year[4]. - Total liabilities decreased to CNY 604,167,085.88 from CNY 689,895,350.55, a decline of 12.4%[36]. - Equity attributable to shareholders increased to CNY 2,671,460,396.60 from CNY 2,649,491,704.64, reflecting a growth of 0.8%[36]. Expenses and Investments - The company's research and development expenses increased by 80.74% to CNY 11,253,604.32 compared to CNY 6,226,403.16 in the previous year[8]. - The company experienced a 94.65% increase in sales expenses, totaling CNY 29,485,375.94, primarily due to the growth in online sales services[8]. - Total operating costs amounted to CNY 204,225,894.87, up 31.1% from CNY 155,753,464.05 in the prior year[37]. - The company is investing heavily in R&D, allocating 20% of its revenue towards developing new technologies and products[20]. - The company is focused on maintaining investment in automation R&D to deliver on projects completed in 2021[13]. Market and Strategic Initiatives - The company signed contracts with 11 new brands, including Mentholatum and Heart Makeup, during the quarter[10]. - The gross merchandise volume (GMV) for the brands served by the company reached CNY 4.804 billion, a year-on-year increase of 12.78%[10]. - The anticipated government subsidies of approximately RMB 4 million were delayed due to severe pandemic conditions in Hangzhou, impacting Q1 performance[13]. - The company plans to expand its market presence through strategic partnerships and new product launches in the upcoming quarters[22]. - Market expansion plans include entering two new international markets by the end of 2022, aiming for a 10% market share in each[19]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 50 million allocated for potential deals[20]. Future Outlook - The company provided a positive outlook for the upcoming quarters, projecting a revenue growth of 15% for the next quarter[20]. - Future guidance suggests a projected revenue growth of approximately 15% year-over-year for the next quarter[22]. - A new product line is expected to be launched by Q3 2022, aimed at capturing a larger market share in the tech sector[22]. - New product launches are expected to drive additional revenue, with an estimated contribution of 1 million in sales from the new offerings[19]. Shareholder and Governance - The total number of ordinary shareholders at the end of the reporting period was 25,164, with the largest shareholder holding 35.09%[14]. - The company’s major shareholder, Hangzhou Wang Chuang Brand Management Co., holds 83,757,996 shares, all of which are pledged[14]. - The company’s stock structure includes significant holdings by various investment funds, with the top ten shareholders holding a combined substantial percentage of shares[16]. - The company held its first temporary shareholders' meeting of 2022 on March 31, 2022, approving the election of the third board of directors and the third supervisory board[31]. - The management team is undergoing changes, with a new CFO appointed to enhance financial strategy and oversight[22]. Share Repurchase and Capital Management - The company completed a private placement of 22,310,037 shares at a price of RMB 40.13 per share, raising a total of RMB 895,301,784.81, with a net amount of RMB 888,141,552.10 after deducting issuance costs[26]. - As of March 31, 2022, the company repurchased 883,301 shares, accounting for 0.3701% of the total share capital, with a total transaction amount of RMB 30,692,735.43[29]. - The maximum repurchase price for shares is set at RMB 50.00 per share, with a total repurchase fund not less than RMB 50 million and not exceeding RMB 100 million[28]. - The company’s board of directors approved a share repurchase plan on March 11, 2022, aimed at implementing equity incentives and/or employee stock ownership plans[28]. - The highest transaction price during the share repurchase was RMB 36.69 per share, while the lowest was RMB 33.88 per share[29].

Dividend and Financial Performance - The company plans to distribute a cash dividend of RMB 2.50 per 10 shares (including tax) to all shareholders, with no bonus shares issued[5]. - The company's operating revenue for 2021 was ¥1,135,069,974.52, a decrease of 12.59% compared to 2020[21]. - The net profit attributable to shareholders for 2021 was ¥326,780,818.76, an increase of 5.39% from the previous year[21]. - The net cash flow from operating activities decreased by 93.73% to ¥27,511,568.61 in 2021[21]. - The total assets at the end of 2021 reached ¥3,421,773,810.27, representing a 69.89% increase from the end of 2020[22]. - The basic earnings per share for 2021 was ¥1.45, up 5.84% from ¥1.37 in 2020[21]. - The company reported a total of ¥67,490,934.97 in non-recurring gains and losses for 2021, significantly higher than ¥25,903,543.18 in 2020[27]. - The net profit after deducting non-recurring gains and losses was ¥259,289,883.79, a decrease of 8.75% compared to 2020[21]. - The company’s weighted average return on equity for 2021 was 16.33%, down from 22.38% in 2020[21]. Market Expansion and Strategic Initiatives - The company is focusing on expanding its market presence and enhancing its product offerings through new technology development and strategic partnerships[14]. - Future outlook includes plans for market expansion and potential mergers and acquisitions to strengthen competitive positioning[14]. - The company has set ambitious performance targets for the upcoming fiscal year, aiming for a substantial increase in revenue and market share[16]. - The company is exploring potential mergers and acquisitions to strengthen its market position[171]. - The company aims to solidify its core advantages in full-domain e-commerce services and enhance brand empowerment through refined operations on platforms like Tmall and JD[145]. - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by the end of 2023[198]. Operational Efficiency and Innovation - The company aims to improve its operational efficiency by adopting lean management and Six Sigma practices[14]. - The company is committed to enhancing its user data analytics capabilities to better understand customer preferences and improve service delivery[14]. - The management team is focused on continuous innovation and the development of new products to meet evolving consumer demands[14]. - The company has implemented robust data security measures, including cloud-based systems and regular backups, to protect sensitive information[48]. - The company is committed to advancing its technology and service capabilities to maintain a competitive edge in the rapidly evolving e-commerce landscape[46]. - The company aims to improve operational efficiency and reduce costs by 10% in the next fiscal year[171]. - The company is focused on the development of new products, including a next-generation software platform expected to launch in Q3 2022[198]. User Growth and Customer Engagement - The company has seen significant user growth, with a reported increase in active users by 30% year-on-year[171]. - The company emphasizes the importance of CRM management to increase brand-consumer interaction and enhance customer loyalty, ultimately driving revenue growth[60]. - Customer satisfaction ratings improved to 90%, reflecting the effectiveness of recent service enhancements[174]. Financial Management and Investments - The company has established a complete risk control system, achieving "zero risk" in operations since its implementation[66]. - The company reported a total revenue of 30,665 million in 2021, an increase of 47.18% compared to the previous year[168]. - The company has utilized self-owned funds for its investments, indicating a strong reliance on internal financing[126]. - The company reported an investment income of CNY 61.70 million, contributing 13.90% to total profit, mainly from dividends received from affiliated companies[113]. - The company has completed the investment projects and plans to permanently supplement working capital with the remaining raised funds[199]. Governance and Compliance - The company strictly adheres to legal requirements for corporate governance, ensuring the independence of its assets, business, personnel, organization, and finances from its controlling shareholders[161]. - The company has a governance structure that includes a board of directors with 9 members, of which 3 are independent directors, ensuring compliance with relevant regulations[158]. - The company has implemented a comprehensive governance framework that includes a shareholders' meeting, board of directors, and supervisory board, all operating in accordance with legal requirements[157]. - The company emphasizes transparency and timely information disclosure, utilizing multiple channels for investor communication[159]. Challenges and Market Risks - The company anticipates challenges from market environment risks due to intense competition and the emergence of new e-commerce service providers[150]. - Seasonal fluctuations in performance are expected, particularly with significant revenue contributions during major shopping events like "Double Eleven" and "618"[151]. - The company's operations are heavily reliant on major e-commerce platforms, and any adverse changes in these platforms could negatively impact business performance[152].

Dividend Distribution - The company plans to distribute a cash dividend of RMB 2.50 per 10 shares (including tax) to all shareholders, with no bonus shares issued[6]. - The company implemented a cash dividend policy, distributing a total of 59,397,893.25 CNY, which accounted for 100% of the profit distribution[200]. - Each 10 shares received a cash dividend of 2.50 CNY (including tax) during the reporting period[199]. Financial Performance - The company reported a significant increase in Gross Merchandise Volume (GMV), reflecting a strong performance in the e-commerce sector[13]. - The financial report indicates a robust year-over-year growth in revenue, showcasing the company's resilience in a competitive market[16]. - Net profit attributable to shareholders for 2021 was ¥326,780,818.76, an increase of 5.39% from the previous year[21]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB in 2021, representing a year-over-year growth of 25%[157]. - The company reported a net profit margin of 10% for 2021, which is an improvement from 8% in 2020[157]. Market Expansion and Strategy - The company is focusing on expanding its market presence and enhancing its product offerings through new technology development and strategic partnerships[14]. - Future outlook includes a commitment to innovation and the introduction of new products to meet evolving consumer demands[14]. - The company plans to expand its market presence and invest in new technologies to drive future growth[151]. - The company aims to enhance user engagement and retention through innovative product offerings[151]. - The company is focusing on market expansion, targeting a 15% increase in market share in the next fiscal year through strategic partnerships and marketing campaigns[157]. Operational Efficiency - The company aims to improve its operational efficiency by implementing lean management and Six Sigma practices[14]. - The company has established a comprehensive risk control system, achieving "zero risk" in operations since its implementation[67]. - Automation initiatives led to an average efficiency improvement of 20% across various operational processes, with over 200 automated business scenarios developed[67]. - The company aims to enhance operational management efficiency by 10% through the implementation of a comprehensive business intelligence plan[91]. Risk Management - The management highlighted potential risks in the industry and emphasized the importance of risk awareness among investors[6]. - The company faces risks from intensified industry competition, which may affect its pricing power and profitability[44]. - The company acknowledges risks related to market environment, including intense competition and the need for timely strategy adjustments to maintain its competitive edge[132]. E-commerce Growth - The company has established a strong online presence, contributing to its overall sales growth and customer engagement[13]. - The total online retail sales in China for 2021 reached ¥13.1 trillion, growing by 14.1% year-on-year[32]. - The e-commerce service industry is expected to continue its steady growth, driven by the increasing number of online users and the expansion of the e-commerce market[38]. - The company has established itself as a leading e-commerce service provider with comprehensive operational capabilities across all categories, brands, and channels[39]. Research and Development - Research and development expenses rose by 83.83% to ¥25.30 million, reflecting increased investment in R&D[89]. - Research and development (R&D) investment amounted to ¥25,299,545.32 in 2021, representing 2.21% of operating revenue, an increase from 1.06% in 2020[93]. - The number of R&D personnel increased by 117.65% from 68 in 2020 to 148 in 2021, with a significant rise in the number of master's degree holders by 160%[92]. Governance and Compliance - The company strictly adheres to relevant laws and regulations, ensuring compliance in corporate governance and operations[140]. - The board of directors consists of 9 members, including 3 independent directors, ensuring a balanced governance structure[141]. - The company has established a comprehensive internal control system to manage risks and ensure normal business operations[142]. - The company has continuously improved its governance practices to align with the standards set by regulatory authorities[143]. Employee Engagement and Development - The company conducted over 100 training sessions in 2021, with more than 3,000 participants, enhancing employee skills and management capabilities[198]. - The workforce included 44 technical personnel, 49 financial personnel, and 1,507 operational personnel, reflecting a diverse professional structure[195]. - The company has a structured employee compensation system linked to market levels and individual performance, aimed at attracting and retaining talent[197]. Acquisitions and Investments - The company is actively pursuing mergers and acquisitions to bolster its market position and diversify its product portfolio[14]. - The company completed acquisitions of Hangzhou Erciyuan and Hangzhou Haidou, enhancing overall service capabilities and profitability[125]. - The company made external investments in Shanghai Meng Tong Cultural Communication Co., Ltd. and Shanghai Duo Mi Brand Management Co., Ltd., generating investment income of 5 million yuan[69]. Future Outlook - The management is optimistic about achieving its performance guidance for the upcoming fiscal year, driven by strategic initiatives and market expansion efforts[14]. - The company provided guidance for 2022, projecting a revenue growth of 20% to 1.8 billion RMB, driven by new product launches and market expansion efforts[157]. - The company plans to invest in systematization and technological innovation, focusing on operational systems like OMS and data intelligence systems to improve marketing efficiency and reduce costs[130].

Key Financial Data [Key Accounting Data and Financial Indicators](index=2&type=section&id=1.1%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Despite Q3 and YTD revenue decline, net profit attributable to shareholders, total assets, and equity grew significantly, indicating enhanced profitability Key Financial Indicators for Q3 2021 and Year-to-Date | Indicator | Current Period (Q3) | YoY Change (Q3) | Year-to-Date (YTD) | YoY Change (YTD) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 242,862,726.25 | -8.91% | 729,281,527.03 | -11.56% | | Net Profit Attributable to Shareholders (Yuan) | 77,058,032.40 | 39.07% | 203,560,853.60 | 24.24% | | Net Cash Flow from Operating Activities (Yuan) | - | - | -48,125,477.64 | -118.23% | | Basic Earnings Per Share (Yuan/share) | 0.33 | 30.21% | 0.92 | 21.05% | Key Balance Sheet Indicators at Period End | Indicator | End of Current Period | End of Previous Year | Change from Previous Year End | | :--- | :--- | :--- | :--- | | Total Assets (Yuan) | 3,051,896,184.67 | 2,014,165,688.66 | 51.52% | | Shareholders' Equity Attributable to Listed Company (Yuan) | 2,530,741,928.01 | 1,512,584,927.64 | 67.31% | [Non-recurring Gains and Losses Items and Amounts](index=3&type=section&id=1.2%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Year-to-date non-recurring gains and losses totaled **29.93 million Yuan**, mainly from asset disposal and government subsidies, significantly boosting net profit Key Non-recurring Gains and Losses Items Year-to-Date | Item | Amount Year-to-Date (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 25,282,014.92 | | Government Subsidies Included in Current P&L | 14,027,434.91 | | **Total** | **29,930,544.65** | [Changes and Reasons for Key Financial Indicators](index=3&type=section&id=1.3%20Changes%20and%20Reasons%20for%20Key%20Financial%20Indicators) Major financial changes were driven by private share placement, adjusted Pechoin partnership, increased prepayments/inventory, and a significant rise in R&D investment - Private placement of shares significantly increased **monetary funds (+129.16%)**, **share capital (+65.48%)**, and **capital reserves (+118.68%)**, primarily driving the expansion of assets and equity[8](index=8&type=chunk)[10](index=10&type=chunk) - Adjustments in the partnership model with Pechoin's flagship store were the core reason for the simultaneous year-to-date decline in **operating revenue (-11.56%)** and **selling expenses (-58.30%)**[10](index=10&type=chunk) - Increased prepayments for goods and inventory stocking for the Double Eleven promotion led to a surge in **prepayments (+240.45%)** and **inventory (+82.43%)**, consequently impacting **net cash flow from operating activities (-118.23%)**[8](index=8&type=chunk)[10](index=10&type=chunk) - The company continued to increase R&D investment, with year-to-date R&D expenses reaching **20.57 million Yuan**, a **147.85% year-on-year increase**[10](index=10&type=chunk) Shareholder Information [Total Shareholders and Top Ten Shareholders](index=4&type=section&id=2.1%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders) The company has **23,383 common shareholders**; the top two hold over **45%**, indicating concentrated ownership, with institutional investors among the top ten - As of the end of the reporting period, the company had a total of **23,383 common shareholders**[11](index=11&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Hangzhou Wangchuang Brand Management Co., Ltd. | 35.09% | 83,757,996 | | Lin Zhenyu | 10.24% | 24,446,382 | | Wu Shu | 3.49% | 8,322,071 | | Zhang Fan | 3.36% | 8,014,937 | | Penghua Emerging Industry Mixed Securities Investment Fund | 3.32% | 7,924,931 | [Changes in Restricted Shares](index=6&type=section&id=2.2%20Changes%20in%20Restricted%20Shares) Total restricted shares increased from **124 million** to **147 million**, primarily due to post-IPO restrictions and executive lock-up commitments - At the end of the reporting period, the company's total restricted shares amounted to **146,705,646 shares**, an increase of **22,310,037 shares** from the beginning of the period[16](index=16&type=chunk) - Key restricted shareholders include Hangzhou Wangchuang Brand Management Co., Ltd. and Lin Zhenyu, whose restricted shares stem from IPO commitments and are expected to be lifted on September 27, 2022[14](index=14&type=chunk) Other Significant Matters [Overview of Operations](index=8&type=section&id=3.1%20Overview%20of%20Operations) The company advanced its dual-engine strategy, expanding to multiple e-commerce platforms, achieving **43% YTD GMV growth** to **15.537 billion Yuan** and **39.07% Q3 net profit growth** - The company implemented a "Omni-channel E-commerce" + "New Consumer Product Acceleration" dual-engine strategy, diversifying its service models[17](index=17&type=chunk) - As of Q3 2021, the company achieved a **GMV of 15.537 billion Yuan**, representing a **43% year-on-year increase**[17](index=17&type=chunk) - In Q3, **35 new brands** were signed, including Nivea, Philips, and Yili, strengthening the company's omni-channel service capabilities[17](index=17&type=chunk) [Revenue Change Analysis](index=8&type=section&id=3.2%20Revenue%20Change%20Analysis) Q3 operating revenue declined due to adjusted Pechoin partnership impacting "Brand Online Marketing Services," largely offset by "Online Management Services" growth Q3 2021 Revenue Changes by Business Segment (Unit: Ten Thousand Yuan) | Business Segment | Jul-Sep 2021 | Jul-Sep 2020 | Change Amount | | :--- | :--- | :--- | :--- | | Brand Online Marketing Services | 3,584.99 | 9,217.28 | -5,632.29 | | Online Management Services | 13,466.56 | 9,149.75 | 4,316.81 | | Online Distribution | 6,661.04 | 7,693.27 | -1,032.23 | | **Total Operating Revenue** | **24,286.27** | **26,661.17** | **-2,374.90** | [GMV Change Analysis](index=8&type=section&id=3.3%20GMV%20Change%20Analysis) Strong GMV growth is driven by **129.89% YTD growth** in new businesses and **210.93% growth** on non-Taobao platforms, validating the multi-platform strategy GMV Growth by Business Segment | Business Segment | Q3 YoY Change (%) | Q1-Q3 2021 YoY Change (%) | | :--- | :--- | :--- | | Mature Businesses (Beauty + Personal Care) | 14.24% | 11.99% | | New Businesses (Food, Trendy Toys, etc.) | 75.38% | 129.89% | GMV Growth by Platform | Platform Type | Q3 YoY Change (%) | Q1-Q3 2021 YoY Change (%) | | :--- | :--- | :--- | | Taobao Ecosystem | 19.85% | 17.84% | | Non-Taobao Platforms | 222.03% | 210.93% | [Progress of Major Asset Restructuring](index=9&type=section&id=3.4%20Progress%20of%20Major%20Asset%20Restructuring) The company is acquiring **49% equity** in Zhejiang Shangbai E-commerce via share issuance and cash, a related party transaction not constituting major asset restructuring - The company plans to acquire **49% equity** in Zhejiang Shangbai E-commerce Co., Ltd. through share issuance and cash payment, and raise supporting funds[22](index=22&type=chunk) Quarterly Financial Statements [Consolidated Balance Sheet](index=9&type=section&id=4.1%20Consolidated%20Balance%20Sheet) As of September 30, 2021, total assets reached **3.052 billion Yuan** (+51.52%), with low liabilities and **2.531 billion Yuan** in parent equity (+67.31%), driven by private share placement Key Items of Consolidated Balance Sheet (Unit: Yuan) | Item | September 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Monetary Funds | 1,447,130,274.49 | 631,501,939.84 | | Total Assets | 3,051,896,184.67 | 2,014,165,688.66 | | Total Liabilities | 453,850,600.85 | 429,637,710.61 | | Total Equity Attributable to Parent Company Shareholders | 2,530,741,928.01 | 1,512,584,927.64 | [Consolidated Income Statement](index=12&type=section&id=4.2%20Consolidated%20Income%20Statement) Q1-Q3 2021 total operating revenue decreased by **11.56%** to **729 million Yuan**, yet net profit attributable to parent shareholders grew **24.24%** to **204 million Yuan**, driven by cost control and investment income Key Items of Consolidated Income Statement (Year-to-Date, Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Total Operating Revenue | 729,281,527.03 | 824,571,227.18 | | Total Operating Costs | 498,898,386.85 | 618,175,252.93 | | Of which: Selling Expenses | 45,968,694.77 | 110,229,635.72 | | Investment Income | 38,388,526.03 | 771.50 | | Total Profit | 278,187,860.78 | 227,995,830.78 | | Net Profit Attributable to Parent Company Shareholders | 203,560,853.60 | 163,844,019.72 | [Consolidated Cash Flow Statement](index=14&type=section&id=4.3%20Consolidated%20Cash%20Flow%20Statement) Q1-Q3 2021 operating cash flow was **-48.13 million Yuan** due to increased prepayments and inventory, while financing cash flow surged to **819 million Yuan** from private share placement, boosting cash reserves Key Items of Consolidated Cash Flow Statement (Year-to-Date, Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -48,125,477.64 | 264,009,413.10 | | Net Cash Flow from Investing Activities | 44,295,822.44 | -196,558,355.61 | | Net Cash Flow from Financing Activities | 819,243,483.34 | -64,548,445.69 | | Net Increase in Cash and Cash Equivalents | 815,673,206.50 | 2,488,264.75 | [Notes on Financial Statement Adjustments](index=16&type=section&id=4.4%20Notes%20on%20Financial%20Statement%20Adjustments) The company retrospectively adopted new leasing standards from January 1, 2021, adjusting opening financial statements by adding "Right-of-Use Assets" and "Lease Liabilities" and modifying "Prepayments" - The company first adopted new leasing standards from **January 1, 2021**, and adjusted relevant items in its opening financial statements[34](index=34&type=chunk) - Key adjustments to the January 1, 2021 balance sheet included increasing **"Right-of-Use Assets" by 8.37 million Yuan**, increasing **"Lease Liabilities" by 6.38 million Yuan**, and decreasing **"Prepayments" by 1.99 million Yuan**[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥486.42 million, a decrease of 12.82% compared to ¥557.96 million in the same period last year[18]. - The net profit attributable to shareholders of the listed company increased by 16.66% to approximately ¥126.50 million, up from ¥108.44 million in the previous year[18]. - The net cash flow from operating activities was negative at approximately -¥61.32 million, a decline of 157.38% compared to ¥106.87 million in the same period last year[18]. - Basic earnings per share rose by 18.00% to ¥0.59, compared to ¥0.50 in the same period last year[18]. - The weighted average return on net assets was 8.08%, a slight decrease from 8.22% in the previous year[18]. - The net profit after deducting non-recurring gains and losses was approximately ¥114.77 million, an increase of 9.47% from ¥104.85 million in the same period last year[18]. - The diluted earnings per share based on the latest share capital was ¥0.53[19]. - The company achieved operating revenue of 484.65 million yuan, a year-on-year decrease of 13.14%[46]. - Net profit attributable to shareholders increased by 16.66% to 126.50 million yuan, while net profit excluding non-recurring gains and losses rose by 9.47% to 114.77 million yuan[46]. Cash Flow and Investments - The company reported a significant decline in cash flow from operations, indicating potential liquidity challenges[18]. - The company reported an investment cash flow of ¥85,984,016.14, a significant improvement of 153.79% from the previous year, attributed to the absence of prior acquisition payments[73]. - The company’s long-term equity investments increased by 9.83% to ¥140,045,586, reflecting a strategic focus on long-term growth[80]. - The company’s investment amount for the reporting period was ¥71,944,528.87, representing a significant decrease of 81.39% compared to the previous year[87]. - The company recorded investment income of ¥19,348,891.16, contributing 11.10% to the total profit, primarily from equity transfers and investment returns[77]. Business Operations and Strategy - The main business remains providing comprehensive e-commerce services for well-known fast-moving consumer goods brands, focusing on brand image, product design, and online operations[27]. - The company has developed a one-stop online data analysis and application service to enhance sales efficiency through precise consumer targeting[29]. - The company completed multiple customized membership services during the reporting period, enhancing consumer loyalty and brand reputation[30]. - The online distribution model allows the company to manage procurement, sales promotion, and logistics, with profits derived from the difference between sales revenue and costs[33]. - The company utilizes a self-developed OMS system to support personalized marketing strategies for different consumers[31]. - The company has established a user experience center to provide tailored gifts and services to brand members, enhancing customer satisfaction[29]. - The company’s service model includes brand online marketing and management services, with revenue generated from service fees based on sales performance[39]. - The company maintains strict inventory turnover control through a collaborative procurement process involving multiple departments[40]. - The company’s operational strategy includes regular feedback to brand partners on consumer data and marketing effectiveness to optimize promotional activities[36]. Market Trends and Industry Outlook - The e-commerce service industry is expected to grow steadily, driven by increasing disposable income and urbanization rates in China[49]. - The overall market size of the e-commerce service industry is projected to expand steadily, supported by favorable policies and the growth of online users[53]. - The overall market size of fast-moving consumer goods (FMCG) in China is approximately between 1.8 trillion to 2 trillion yuan, indicating significant potential for online penetration growth[56]. - The online sales market for FMCG has substantial room for improvement, particularly in daily chemical products, which currently have a lower online penetration rate compared to categories like clothing and home appliances[56]. - The online market for FMCG is expected to grow rapidly as younger consumers increasingly favor convenience and efficiency in their purchasing channels[56]. Shareholder and Equity Information - The company will not distribute cash dividends or issue bonus shares for the half-year period[124]. - The company has implemented a stock incentive plan to motivate employees and align their interests with shareholders[125]. - The company’s major shareholder, Mr. Lin Zhenyu, pledged 1,824,000 shares for operational purposes[161]. - The company’s total share capital increased to 216,392,390 shares after the adjustment of the dividend distribution plan[168]. - The company’s equity structure includes 57.51% of restricted shares and 42.49% of unrestricted shares[166]. - The company completed the repurchase and cancellation of 66,600 shares of restricted stock that had been granted but not unlocked, involving 4 individuals[128]. - The company’s management has a lock-up period for their shares during their tenure[173]. Risks and Challenges - The company faces risks from intensified industry competition, potential brand owner encroachment into e-commerce, and reliance on rebates from brand partners[108][109][110]. - The company emphasizes the importance of information security and has established a comprehensive management system to mitigate risks[111]. - The financial report for the first half of 2021 has not been audited, which may affect the reliability of the financial data presented[197]. Future Plans and Developments - The company plans to enhance service quality and diversify service types, establishing centers for user experience, creative design, product development, and integrated marketing[113]. - The company aims to accelerate technology upgrades and improve its information system, including the development of an AI-assisted decision-making system and automated data extraction tools[115]. - The company plans to enhance customer acquisition capabilities and expand market share through e-commerce upgrades and integrated operation service center projects[116]. - A dedicated department will be established to focus on user experience research, product design, and integrated sales, aiming to increase the potential customer base[116]. - The company aims to develop an automated data extraction and processing system to improve market decision-making accuracy and efficiency[116]. - The company will recruit various talents, including IT and data analysis personnel, to strengthen its logistics and supply chain management capabilities[117]. - The company intends to enhance its marketing capabilities by hiring more planning talents and expanding its design teams in areas such as process, graphics, and packaging[117].

杭州壹网壹创科技股份有限公司 2020 年年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 公司负责人林振宇、主管会计工作负责人周维及会计机构负责人(会计主管 人员)洪珊声明：保证本年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本报告涉及的未来计划等前瞻性陈述，不构成公司对投资者实质承诺，请 投资者注意投资风险。 公司经本次董事会审议通过的利润分配预案为：以 144,306,000 股为基数， 向全体股东每 10 股派发现金红利 5.5 元（含税），送红股 0 股（含税），以资本 公积金向全体股东每 10 股转增 5 股。 1 | 目录 | | --- | | 第一节 | 重要提示、目录和释义 | 4 | | --- | --- | --- | | 第二节 | 公司简介和主要财务指标 | 8 | | 第三节 | 公司业务概要 | 18 | | 第四节 | 经营情况讨论与分析 | 39 | | 第五节 | 重要事项 | 84 | ...

Financial Performance - The company's revenue for Q1 2021 was ¥222,799,411.29, representing a 4.20% increase compared to ¥213,814,685.95 in the same period last year[7] - Net profit attributable to shareholders was ¥53,145,434.60, up 12.29% from ¥47,327,138.24 year-over-year[7] - The net profit after deducting non-recurring gains and losses was ¥49,154,276.97, reflecting a 9.10% increase from ¥45,054,895.18 in the previous year[7] - The basic earnings per share increased to ¥0.37, a rise of 12.12% compared to ¥0.33 in the same period last year[7] - The company's GMV for the brands served reached CNY 4.34 billion in Q1 2021, a 95.29% increase compared to the same period in 2020[25] - Net profit for Q1 2021 was CNY 58,939,070.04, compared to CNY 47,304,612.39 in the same period last year, representing a growth of approximately 24.5%[50] - The company reported a profit before tax of CNY 73,518,449.09, an increase from CNY 62,658,863.37 year-over-year[50] - The company achieved a total comprehensive income of CNY 59,515,472.36, up from CNY 47,522,161.42 in the same period last year[51] Assets and Liabilities - The total assets at the end of the reporting period were ¥2,042,499,559.32, up 1.41% from ¥2,014,165,688.66 at the end of the previous year[7] - The net assets attributable to shareholders increased to ¥1,566,730,689.79, a growth of 3.58% from ¥1,512,584,927.64 at the end of the previous year[7] - The company's total equity increased to CNY 1,647,930,703.57 from CNY 1,584,527,978.05, marking an increase of about 4.0%[43] - The company's total liabilities decreased to CNY 394,568,855.75 from CNY 429,637,710.61, a decrease of approximately 8.2%[42] - The company's total current liabilities decreased to CNY 376,359,053.07 from CNY 420,872,755.97, a reduction of approximately 10.6%[42] - The company's total current assets slightly increased to CNY 1,277,869,932.39 from CNY 1,271,067,166.05, reflecting a growth of about 0.5%[40] Cash Flow - The net cash flow from operating activities was negative at -¥31,095,807.81, a significant decrease of 203.17% compared to ¥30,139,370.81 in the same period last year[7] - Cash inflow from operating activities totaled CNY 418,090,574.12, an increase from CNY 381,215,678.87 in the previous period[57] - Cash outflow from operating activities was CNY 449,186,381.93, up from CNY 351,076,308.06 in the previous period[58] - The ending balance of cash and cash equivalents was CNY 697,435,431.76, down from CNY 871,352,927.09 in the previous period[59] - The company reported a significant increase in cash received from other operating activities, totaling CNY 157,328,811.22, compared to CNY 80,225,295.35 in the previous period[57] Investments and Expenses - R&D expenses increased by 563.62% to CNY 6.23 million, reflecting a significant rise in investment in research and development[23] - Research and development expenses rose to CNY 6,226,403.16 from CNY 938,247.75, indicating a significant investment in innovation[49] - The brand service upgrade project has a total committed investment of RMB 35,023.87 million, with 47.08% of the investment completed by the end of the reporting period[31] - The comprehensive operation service center construction project has a total committed investment of RMB 17,302.19 million, with 56.41% of the investment completed[31] Shareholder Information - The total number of common shareholders at the end of the reporting period was 18,391[11] - The total number of restricted shares at the beginning of the period was 55,830,074 for Hangzhou Wangchuan Brand Management Co., Ltd. and 15,513,041 for Lin Zhenyu, with no shares released during the current period[15] - The company maintains a lock-up policy for executives, allowing for a gradual release of shares based on tenure[15] - The company has a structured release schedule for restricted shares, with multiple phases extending up to 60 months post-grant[16] Revenue Breakdown - The brand online marketing service revenue decreased by 30.86% year-on-year, primarily due to changes in the cooperation model with Pechoin[24] - The brand online management service revenue increased by 51.28% year-on-year, attributed to business growth under the new cooperation model[24] - Total operating revenue for Q1 2021 was CNY 222,799,411.29, an increase from CNY 213,814,685.95 in the previous period[48] - Total operating costs decreased to CNY 155,753,464.05 from CNY 156,705,413.52, with operating costs specifically down to CNY 114,595,599.13 from CNY 118,492,278.43[49] Other Information - The company did not undergo an audit for the first quarter report[64] - The company signed 6 new brands during the quarter and is in discussions with approximately 10 additional brands, most of which are nearing signing[25]

Financial Performance - The company's revenue for Q1 2021 was ¥222,799,411.29, representing a 4.20% increase compared to ¥213,814,685.95 in the same period last year[7]. - Net profit attributable to shareholders was ¥53,145,434.60, up 12.29% from ¥47,327,138.24 year-on-year[7]. - The net profit after deducting non-recurring gains and losses was ¥49,154,276.97, reflecting a 9.10% increase from ¥45,054,895.18 in the previous year[7]. - The basic earnings per share increased to ¥0.37, a rise of 12.12% compared to ¥0.33 in the same period last year[7]. - The company's total revenue for Q1 2021 was CNY 222.80 million, representing a 4.20% increase compared to CNY 213.81 million in Q1 2020[24]. - Net profit for Q1 2021 was ¥58,939,070.04, up from ¥47,304,612.39 in the same period last year, representing a growth of approximately 24.5%[50]. - The company reported a comprehensive income total of ¥59,515,472.36, compared to ¥47,522,161.42 in the previous year, indicating strong overall growth[51]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,042,499,559.32, up 1.41% from ¥2,014,165,688.66 at the end of the previous year[7]. - The company's total assets amounted to CNY 2,042,499,559.32, an increase from CNY 2,014,165,688.66 as of December 31, 2020, reflecting a growth of approximately 1.4%[40]. - The company's total liabilities decreased to CNY 394,568,855.75 from CNY 429,637,710.61, a reduction of about 8.2%[42]. - The company's total liabilities decreased to ¥461,361,435.71 from ¥500,367,349.43, indicating improved financial stability[49]. Cash Flow - The net cash flow from operating activities was negative at -¥31,095,807.81, a significant decrease of 203.17% compared to ¥30,139,370.81 in the same period last year[7]. - Cash inflow from operating activities totaled CNY 418,090,574.12, an increase from CNY 381,215,678.87 in the previous period[57]. - Cash flow from investment activities generated a net inflow of CNY 77,787,396.32, compared to a net outflow of CNY -471,867.00 in the previous period[58]. - Cash flow from financing activities resulted in a net inflow of CNY 19,368,556.33, up from CNY 14,484,570.00 in the previous period[59]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 144,306,000[11]. - The total number of restricted shares at the beginning of the period was 55,830,074 for Hangzhou Wangchuan Brand Management Co., Ltd. with no shares released during the current period[15]. - The total number of restricted shares held by Lin Zhenyu was 15,513,041, with no shares released during the current period[15]. - Wu Shu holds 4,160,395 restricted shares, with a release schedule allowing for 25% of his total shares to be released annually during his tenure[15]. - Zhang Fan has 4,006,852 restricted shares, also with a 25% annual release schedule during his tenure[15]. - Lu Hualiang holds 3,196,982 restricted shares, with a similar release schedule of 25% annually[15]. Investment and Projects - The total amount of raised funds is RMB 68,914.79 million, with RMB 4,286.19 million invested in the current quarter[30]. - The brand service upgrade project has a total committed investment of RMB 35,023.87 million, with RMB 16,488.83 million (47.08%) utilized by the end of the reporting period[31]. - The comprehensive operation service center construction project has a total committed investment of RMB 17,302.19 million, with RMB 9,759.63 million (56.41%) utilized by the end of the reporting period[31]. - The company has not experienced any significant changes in project feasibility or reasons for not meeting planned progress or expected benefits[31]. Research and Development - R&D expenses increased by 563.62% to CNY 6.23 million, reflecting a significant rise in investment in research and development[23]. - Research and development expenses rose significantly to ¥6,226,403.16 from ¥938,247.75, highlighting a focus on innovation[49].

杭州壹网壹创科技股份有限公司 2020 年年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 公司负责人林振宇、主管会计工作负责人周维及会计机构负责人(会计主管 人员)洪珊声明：保证本年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本报告涉及的未来计划等前瞻性陈述，不构成公司对投资者实质承诺，请 投资者注意投资风险。 公司经本次董事会审议通过的利润分配预案为：以 144,306,000 股为基数， 向全体股东每 10 股派发现金红利 5.5 元（含税），送红股 0 股（含税），以资本 公积金向全体股东每 10 股转增 5 股。 1 | 目录 | | --- | | 第一节 | 重要提示、目录和释义 | 4 | | --- | --- | --- | | 第二节 | 公司简介和主要财务指标 | 8 | | 第三节 | 公司业务概要 | 18 | | 第四节 | 经营情况讨论与分析 | 39 | | 第五节 | 重要事项 | 84 | ...