1、 Joyoung Co.,Ltd.Abstract of Interim Report 2019 August 2019 Joyoung Co.,Ltd.Abstract of Interim Report 2019 1 Joyoung Co.,Ltd.Abstract of Interim Report 2019 Section I Important Statements This is an abstract of Interim Report 2019.Investors are kindly reminded to read the complete version of Inter
2、im Report 2019 on the website which is designated by the China Securities Regulatory Commission to get complete information about operational results,financial statements and future plans of the Company.In the event of any discrepancy between the abstract and the full document of annual report,the f
3、ull document version shall prevail.Different opinions from directors,supervisors and senior management Applicable N/A All directors attended the board meeting that reviewed Interim Report 2019 Modified audit opinion Applicable N/A The preliminary plan for dividend distribution and converting capital
4、 reserves into share capital for common shareholders which was considered and approved by the Board Applicable N/A Convert capital reserves into share capital Yes No The Board has considered and approved the following dividend payout plan for the Reporting Period:based on the Companys total shares o
5、f 767,312,000,it is proposed that the Company should distribute a cash dividend of RMB 5(tax inclusive)and stock dividend of 0 share(tax inclusive)per 10 shares to all the shareholders and should not convert capital reserves into share capital.The preliminary plan for dividend distribution for prefe
6、rred shares in the reporting period approved by the Board Applicable N/A Joyoung Co.,Ltd.Abstract of Interim Report 2019 2 Section II Company Profile 1.Company Information Stock Abbreviation Joyoung Stock Code 002242 Stock Exchange Where the Shares of the Company are Listed Shenzhen Stock Exchange C
7、ontact Us Board Secretary Securities Representative Name Xuning WANG(acting)Minxin MIAO Address No.760 Yinhai Street,Jianggan District,Hangzhou,Zhejiang Province No.760 Yinhai Street,Jianggan District,Hangzhou,Zhejiang Province Tel.0571-81639093 0571-81639178 E-mail 2.Key Accounting Data and Financi
8、al Indicators Whether the Company performed a retroactive adjustment to or restatement of accounting data Y es No H1 2019 H1 2018 Flux(%)Operating revenues(RMB Y uan)4,186,970,321.87 3,639,589,109.46 15.04%Net profits attributable to shareholders of the Company(RMB Y uan)406,005,399.22 370,040,372.1
9、2 9.72%Net profits attributable to shareholders of the Company before non-recurring gains and losses(RMB Y uan)377,487,058.29 292,519,062.00 29.05%Net cash flow from operating activities(RMB Y uan)176,809,470.46 223,587,114.34-20.92%Basic earnings per share(RMB Y uan/share)0.53 0.482 9.96%Diluted ea
10、rnings per share(RMB Y uan/share)0.53 0.482 9.96%Weighted average ROE 10.34%9.84%0.50%30 June 2019 31 December 2018 Flux(%)Total assets(RMB Y uan)6,002,421,727.97 6,660,086,381.54-9.87%Net assets attributable to shareholders of the Company(RMB Y uan)3,685,902,249.44 3,810,291,395.62-3.26%3.Number of
11、 Shareholders of the Company and Their Shareholdings Unit:share Total number of common shareholders at the end of the Reporting Period 25,763 Total number of preferred shareholders with resumed voting rights at the end of the Reporting Period(if any)0 Top 10 common shareholders Name of shareholder N
12、ature of shareholder Shareholding percentage Total shares held at the period-end Number of restricted shares held Pledged or frozen shares Status Number Shanghai Lihong Enterprise Management Limited Domestic non-state-owned corporation 50.11%384,523,746 Pledged 339,272,626 Bilting Developments Limit
13、ed Foreign corporation 16.93%129,924,090 Joyoung Co.,Ltd.Abstract of Interim Report 2019 3 Central Huijin Investment Ltd.State-owned corporation 4.99%38,310,500 Hong Kong Securities Clearing Co.,Ltd.Foreign corporation 3.01%23,126,724 E Fund Management Co.,Ltd.-Social Insurance Fund Portfolio No.110
14、4 Others 0.63%4,800,070 AEGON INDUSTRIAL Fund Management Co.,Ltd.-Industrial Bank Co.,Ltd.-AEGON INDUSTRIAL-Stock Dividend Specific Multi-Client Asset Management Plan Others 0.58%4,421,642 Basic Pension Insurance Fund Portfolio No.1206 Others 0.51%3,929,281 Agricultural Bank of China Co.,Ltd.-CSI 50
15、0 Exchange Trade Fund Others 0.49%3,727,981 National Social Security Fund Portfolio No.406 Others 0.47%3,569,766 Bank of China-Harvest Growth Open-Ended Security Investment Fund Others 0.43%3,327,900 Related or acting-in-concert parties among shareholders above In April 2019,the shareholding structu
16、re of Bilting Developments Limited changed.MR.Xuning WANG,the actual controller of the Company,became the controlling shareholder of Bilting Developments Limited(See Report No.2019-027 of the Company on.).As a result,Shanghai Lihong Enterprise Management Co.,Ltd.and Bilting Developments Limited,both
17、 controlled by Mr.Xuning WANG,are defined as acting-in-concert parties by the Administrative Measures for the Takeover of Listed Companies.Other than the aforementioned related and acting-in-concert parties above,the Company is uncertain about whether there are related or acting-in-concert parties a
18、mong shareholders.Explanation on common shareholders participating in securities margin trading(if any)N/A 4.Change of Controlling Shareholder or Actual Controller in the Reporting Period Change of controlling shareholder in the Reporting Period Applicable N/A No such cases in the Reporting Period C
19、hange of Actual Controller in the Reporting Period Applicable N/A No such cases in the Reporting Period.5.Total Number of Preferred Shareholders and TOP 10 Preferred Shareholders and Their Shareholdings Applicable N/A None in the Reporting Period.Joyoung Co.,Ltd.Abstract of Interim Report 2019 4 6.R
20、elevant Information on Corporate Bonds Does the Company have any undue or unredeemed matured corporate bonds publicly offered in the Stock Exchange by the date the Interim Report 2019 was submitted Y es No Section III Performance Discussion and Analysis 1.Performance Review of the Reporting Period D
21、oes disclosure requirements of special industries apply Y es No In the first half,the Company has achieved operating revenues of 4,186.97 million Yuan,an increase of 15.04%year on year.Major categories of the Company have maintained steady growth and product average sales price has increased signifi
22、cantly as a result of optimized product mix.Operating costs were 2,833.17 million Yuan,an increase of 16.22%year on year.Gross profit margin of the Company was 32.33%,down by 0.69 percentage point year on year.Sales expenses were 620.18 million Yuan,down by 1.92%year on year,with sales expenses rati
23、o at 14.81%.General and administrative expenses were 159.55 million Yuan,up by 34.92%year on year,with its ratio at 3.81%;research and development expenses were 143.05 million Yuan,a year-on-year increase of 19.38%.Total profits achieved by the Company was 468.24 million Yuan,up by 7.83%year on year
24、.Net profits attributable to Joyoungs shareholders were 406.01 million Yuan,up by 9.72%year on year.Net operating cash flow was 176.81 million Yuan,down by 20.92%year on year.In the Reporting Period,the Company has focused on the small house appliances industry,dedicated to upgrade in strategy and b
25、rand and transform from a soymilk maker company to one offering quality small house appliances.By introducing the Shark brand,the Company has expanded its business to household cleaning appliances.1）Better Life Driven by Innovation As peoples living standards improved,consumer demands for small hous
26、e appliances have increased and upgraded.The pursuit of quality life has taken the place of mere satisfaction of functionality.Based on the insights into consumer behaviour and consumption trend,Joyoung has continued to enhance product quality with the spirit of craftsmanship,using smart hardware an
27、d software,the Internet and the Internet of Things.In the first half of 2019,the Company has launched three models in the product line of self-cleaning cell-wall-breaking automated soymilk maker,including K1S,K mini and K solo.The K series are not only soymilk makers,but also multi-functional bevera
28、ge machines to make coffee,brew tea and prepare baby formula.The self-cleaning technology is one of the core technologies which the Company has developed independently throughout these years.Now it has been inventively applied to Joyoungs cell-wall-breaking high-speed blenders.Joyoung has once again
29、 pioneered in this specific category and Joyoung Co.,Ltd.Abstract of Interim Report 2019 5 led the industry to the self-cleaning era after its previous revolutionary breakthroughs that has achieved cool or heated blending and very low noise level.In the Reporting Period,the Company has launched the
30、worlds first self-cleaning cell-wall-breaking high-speed blender,Y88.In traditional heating appliances,the Company has been exploring new ways of cooking.In the first half,Joyoung has launched S5,the steam rice cooker with liners free of inner-coating,which has brought great changes to the way peopl
31、e cook rice.It cooks rice with 120 steam and all-round even heating,making the rice fluffy,fragrant,nutritious yet never overcooked.More than that,S5 is also a steamer equipped with different liners.It can be used to cook chicken soup,fish and crabs or even to sterilize nursing bottles.2）Integrated
32、Development in Omni-channels In the Reporting Period,Joyoung has proactively expanded its offline channels with its“customer centric”strategy.The Company has not only renovated its retail stores and developed its channels in commercial complexes such as shopping malls,but also built exclusive channe
33、ls including flagship stores,brand experience stores and speciality shops,establishing an omni-channel network covering different markets.To get close to consumers and understand their needs,the Company has been organizing all sorts of interactive activities in offline brand stores.Such activities h
34、ave brought Joyoungs fans and users together to experience the latest products and cook food.Repeated purchases are boosted through constant communication and interaction like this.As an important contributor of the Companys revenue,online business has maintained a robust growth.The Company has been
35、 collaborating with KOLs(Key Opinion Leaders)on new media platforms like WeChat,Weibo,Taobao Live Stream,TikTok and Kuaishou.With the help of a younger and more popular brand promotion approach,the Company is able to reach out to a wider range of young consumers and create new demand.In the Reportin
36、g Period,the Company has opened up its self-owned official flagship store on Tmall with hundreds of thousands of new followers.Through the Joyoung Official Flagship Store,the Company can have a closer look at its consumers shopping behaviour and directly receive their feedback.Additionally,the store
37、 can facilitate mutual interaction,connection and traffic directing with offline retail ends,that is,integrated development of O2O(Online to Offline).To promote its new retailing business,Joyoung has built a team to look into new retailing,new media,big data and wireless applications.A retail system
38、 has also been developed to provide service for exclusive stores.Customers can therefore enjoy one-stop shopping experience and scan to pay easily.For the Company,it is also more convenient to monitor and share data,interact with fans,direct consumer traffic and dispatch products from warehouses clo
39、sest to customers.In this way,the Company strives to maximize the value of consumer traffic.3)Enjoy Health&Value Marketing Joyoung Co.,Ltd.Abstract of Interim Report 2019 6 In recent years,the Company has been firmly promoting brands and assuring product quality.Through value marketing,it has releas
40、ed innovative products of high added value,good design and high quality to meet consumer demand.Via traditional media,vertical media,social media and other new media,Joyoung has achieved precise value marketing,which has attracted more attention from consumers,familiarized consumers with its brands
41、and products and stimulated purchase demands.In the Reporting Period,the Company announced its new brand advocate:enjoy health.It marks that Joyoung has been upgraded to a younger brand.A-lister Lun DENG is now the new brand ambassador of Joyoung.Now the Company can provide handy and sleek products,
42、smart and convenient user-experience and prepared ingredient packages,which enables people to have a brand new and healthy lifestyle.Early this year,K1S,the self-cleaning cell-wall-breaking automated soymilk maker that the Company newly launched,went viral at London Fashion Week.Soymilk made by Joyo
43、ungs soymilk maker took the place of the once popular champagne.In May,2019,Joyoung joined the Tmall Chinese Fashion Campaign and held the product launch event for S5 in the theme of Steam Revolution in Kitchen,presenting this original Chinese invention to the world.S5 drew the attention of internat
44、ional news media including The Guardian,NouvellesDEurope,London Metro Morning Post,DailyMail and others.Such activities can help promote the global influence of Joyoungs brand and products.They can deliver the message that Joyoung is a healthy,innovative,sleek and young brand and win the favour and
45、trust of target consumers.2.Events Related to Financial Statements(1)Statements of Any Changes in Accounting Policies,Accounting Estimates and Accounting Methods as Compared to the Financial Report for the Prior Year.On March 31,2017,the Ministry of Finance issued the Accounting Standards for Busine
46、ss Enterprises No.22 Recognition and Measurement of Financial Instruments(Accounting 2017 No.7)and Accounting Standards for Business Enterprises No.23 Transfer of Financial Assets(Finance 2017 No.8),on May 2,2017,the Accounting Standards for Business Enterprises No.37 Financial Instruments Presentat
47、ion(Accounting 2017 No.14)(collectively referred to as the New Financial Instruments Guidelines)was issued and required that companies only listed in China to have it implemented starting from January 1,2019.According to the relevant requirements of the Ministry of Finance,the Company has changed th
48、e accounting policies.(2)Statements about Retrospective Restatement of Major Accounting Errors in the Reporting Period Applicable N/A None in the Reporting Period.Joyoung Co.,Ltd.Abstract of Interim Report 2019 7(3)Statements for Changes in Scope of the Consolidated Financial Statements as Compared to the Financial Report for the Prior Year Applicable N/A The scope of the consolidated financial statements has not changed as compared to the financial report for the prior year.
