The Third Quarter Report in 2022
Stock Code: 603605 Stock Abbreviation : Proya
Bond Code: 113634 Bond Abbreviation: Proya convertible bond
Proya Cosmetics Co. Ltd.The Third Quarter Report in 2022
The Board of Directors and all directors of the Company warrant that the contents
herein are free from misrepresentations misleading statements or material omissions and
they will be jointly and severally liable for the authenticity accuracy and completeness
thereof.Important Note:
The Board of Directors Board of Supervisors directors supervisors and officers of the Company
warrant that the contents of the Quarterly Report are authentic accurate and complete without any
misrepresentations misleading statements or material omissions and they will be jointly and severally
liable therefor.The Chairman the chief financial officer and the head of the accounting department warrant that the
financial statements herein is authentic accurate and complete.Whether the third quarter financial statements have been audited.□Yes √No
I. Main Financial Data
(I) Main Accounting Data and Financial Indicators
Unit: Yuan Currency: RMB
YOY change in the
YOY change From the beginning
period from the
The Reporting in the of the year to the end
Item beginning of the year
Period Reporting of the Reporting
to the end of the
Period (%) Period
Reporting Period (%)
Operating income 1336130787.67 22.07 3962074031.96 31.53
Net profit attributable to
198375641.6443.55495315157.1835.96
shareholders of the listed
1 / 17The Third Quarter Report in 2022
company
Net profit attributable to
shareholders of the listed
196100724.2544.07476998142.7833.84
company after deducting
non-recurring profit or loss
Net cash flow from
N/A N/A 771873333.67 57.37
operating activities
Basic earnings per share
0.712.901.76-3.30
(RMB/share)
Diluted earnings per share
0.701.451.74-3.87
(RMB/share)
Up by 1.17
Weighted average return on Up by 2.01 percentage
6.59 percentage 16.51
equity (%) points
points
Change at the end of
End of the the Reporting Period
End of prior year
Reporting Period over the end of prior
year (%)
Total assets 5461758028.57 4633049783.03 17.89
Owner’s equity attributable
to shareholders of the listed 3178288666.18 2876975835.98 10.47
company
Note: “The Reporting Period” shall refer to the 3-month period ended September 30 2022 as follows.(II) Items and Amounts of Non-recurring Profit or Loss
Unit: Yuan Currency: RMB
Amount in the period from
Amount in the Reporting the beginning of the year
Item Note
Period to the end of the Reporting
Period
Gains or losses from
disposal of non-current
assets
Unauthorized examination
and approval or lack of
official approval
documents or occasional
tax revenue return and
abatement
Government grants 3140446.53 23580544.90
recognized in profit or
loss for the current period
(excluding government
grants that are closely
2 / 17The Third Quarter Report in 2022
related to the Company’s
business operations and
gained at a fixed amount
or quantity according to
national uniform
standards)
Capital occupation fees
charged to the
non-financial enterprises
and included in profit or
loss for the current period
Gains when the
investment cost of
acquiring a subsidiary an
associate and a joint
venture is less than the fair
value of the identifiable
net assets of the investee
Gains or losses from
exchange of non-monetary
assets
Gains or losses from
entrusting others with
investment or asset
management
Asset impairment
provision made resulting
from force majeure such
as natural disasters
Gains or losses from debt
restructuring
Enterprise restructuring
fees such as staffing
expenses and integration
fees
Gains or losses that
exceeds the fair value in
transaction with unfair
price
Current net gains or losses
of subsidiaries established
by business combination
involving enterprises
under common control
from the beginning of the
period to the combination
date
3 / 17The Third Quarter Report in 2022
Gains or losses on
contingencies that have no
relation with the normal
operation of the Company
Gains or losses from
change in fair value by
held-for-trading financial
assets derivative financial
assets held-for-trading
financial liabilities and
derivative financial
liabilities and investment
income from disposal of
held-for-trading financial
assets derivative financial
assets held-for-trading
financial liabilities
derivative financial
liabilities and other debt
investments excluding the
effective hedging
businesses related with
normal operations of the
Company
Reversal of impairment
provision of accounts
receivable and contract
assets that have undergone
impairment test alone
Gains or losses from
outward entrusted loaning
Gains or losses from
changes in the fair values
of investment properties
that are subsequently
measured using the fair
value model
Impact of a one-time
adjustment on current
profit and loss according
to the requirements of tax
and accounting laws and
regulations
Custody fees of entrusted
operation
Other non-operating -66506.02 214968.49
income and expenses
besides the above items
4 / 17The Third Quarter Report in 2022
Other items that conform
to the definition of
non-recurring profit or
loss
Less: Effect of income tax 806896.17 4416105.71
Effect of minority -7873.05 1062393.28
equity (after tax)
Total 2274917.39 18317014.40
Descriptions on classifying non-recurring profit and loss items defined in the Explanatory
Announcement No. 1 for Public Company Information Disclosures - Non-recurring Profit and Loss as
recurring profit and loss items.□Applicable √N/A
(III) Changes in Main Accounting Data and Financial Indicators and Main Reasons
√Applicable □N/A
Item Change ratio (%) Primary reasons
Operating income (from the Mainly due to: 1. the YOY increase in the online channel
beginning of the year to the 31.53 income; 2. the rapid growth of the Second-growth-curve
end of the Reporting Period) brands.Net profit attributable to Mainly due to: 1. the YOY increase in the online channel
shareholders of the listed income; 2. the increase of gross profit margin and the
43.55
company (the Reporting YOY increase in gross profit operating profit and total
Period) profit.Net profit attributable to The specific reasons are the same as above.shareholders of the listed
company after deducting 44.07
non-recurring profit or loss
(the Reporting Period)
Mainly due to: 1. the YOY increase in the online channel
income; 2. (1) Ningbo Timage Cosmetics Co. Ltd. (a
Net profit attributable to
controlled subsidiary of the Company) turned losses into
shareholders of the listed
profits during the Reporting Period; (2) Shanghai
company (from the beginning 35.96
Healthlong Biochemical Technology Co. Ltd. (a
of the year to the end of the
controlled subsidiary of the Company) has ceased to be
Reporting Period)
included in the consolidated financial statements since
May 2021.Net profit attributable to The specific reasons are the same as above.shareholders of the listed
company after deducting
non-recurring profit or loss 33.84
(from the beginning of the year
to the end of the Reporting
Period)
5 / 17The Third Quarter Report in 2022
Net cash flow from operating Mainly due to: the YOY increase in the operating income
activities (from the beginning and the increase of cash inflows from operating activities.
57.37
of the year to the end of the
Reporting Period)
II. Shareholders Information
(I) Total Number of Common Shareholders Number of Preferred Shareholders with Voting Rights and
the Shareholding of Top Ten Shareholders
Unit: share
Total number of common Total number of preferred shareholders
shareholders by the end of the 13764 with voting rights by the end of the 0
Reporting Period Reporting Period (if any)
Shareholdings of top ten shareholders
Pledged placed
Number of with mark
Nature of Number of Shareholding
Name of shareholder restricted lock-up or not
shareholder shares held ratio (%)
shares Share
Number
status
Domestic
HOU Juncheng 97670741 34.45 0 None
natural person
Hong Kong Securities Clearing
Other 65496052 23.10 0 None
Company Limited
Domestic
FANG Yuyou 49639480 17.51 0 None
natural person
China Construction Bank Co.Ltd. - Yinhua Fuyu Theme
Other 5900165 2.08 0 None
Hybrid Securities Investment
Fund
China Construction Bank Co.Ltd. - CUAM Consumer
Other 2600058 0.92 0 None
Industry Hybrid Securities
Investment Fund
Aberdeen Standard Investment
Management (Asia) Co. Ltd. -
Other 2552293 0.90 0 None
Aberdeen Standard - China
A-share Equity Fund
Industrial and Commercial Bank
of China Limited - Jingshun
Changcheng Emerging Growth Other 2380000 0.84 0 None
Hybrid Securities Investment
Fund
Domestic
CAO Liangguo 2268997 0.80 0 None
natural person
6 / 17The Third Quarter Report in 2022
Industrial and Commercial Bank
of China Limited - CUAM
Other 1100038 0.39 0 None
Consumption Upgrade Hybrid
Securities Investment Fund
Domestic
XU Junqing 926239 0.33 0 None
natural person
Shareholding of top ten unrestricted shareholders
Number of unrestricted Type and number of shares
Name of shareholder
outstanding shares held Type Number
HOU Juncheng 97670741 RMB common stock 97670741
Hong Kong Securities Clearing
65496052 RMB common stock 65496052
Company Limited
FANG Yuyou 49639480 RMB common stock 49639480
China Construction Bank Co. Ltd.- Yinhua Fuyu Theme Hybrid 5900165 RMB common stock 5900165
Securities Investment Fund
China Construction Bank Co. Ltd.- CUAM Consumer Industry
2600058 RMB common stock 2600058
Hybrid Securities Investment
Fund
Aberdeen Standard Investment
Management (Asia) Co. Ltd. -
2552293 RMB common stock 2552293
Aberdeen Standard - China
A-share Equity Fund
Industrial and Commercial Bank
of China Limited - Jingshun
Changcheng Emerging Growth 2380000 RMB common stock 2380000
Hybrid Securities Investment
Fund
CAO Liangguo 2268997 RMB common stock 2268997
Industrial and Commercial Bank
of China Limited - CUAM
1100038 RMB common stock 1100038
Consumption Upgrade Hybrid
Securities Investment Fund
XU Junqing 926239 RMB common stock 926239
Description of the association
FANG Yuyou is the younger brother of HOU Juncheng’s spouse FANG
relationship or concerted action of
Aiqin so HOU Juncheng and FANG Yuyou are related.the above shareholders
Description of the participation of
the top 10 shareholders and the
top 10 unrestricted shareholders in None
the margin trading and refinancing
business (if any)
7 / 17The Third Quarter Report in 2022
III. Other Reminders
Other important information about the Company’s business during the Reporting Period for the
attentions of investors
□Applicable √N/A
IV. Quarterly Financial Statements
(I) Type of Audit Opinion
□Applicable √N/A
(II) Financial Statements
8 / 17The Third Quarter Report in 2022
Consolidated Balance Sheet
September 30 2022
Prepared by: Proya Cosmetics Co. Ltd.Unit: Yuan Currency: RMB Audit Type: Unaudited
Item September 30 2022 December 31 2021
Current assets:
Cash and cash equivalents 2894581365.15 2391048249.81
Balances with clearing agencies
Placements with banks and other financial institutions
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 61903721.27 138626627.90
Receivable financing 3031831.88 3242000.00
Prepayments 174958003.94 58406647.11
Premiums receivable
Amounts receivable under reinsurance contracts
Reinsurer's share of insurance contract reserves
Other receivables 20569960.98 66043707.81
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale agreements
Inventories 690124090.74 447938758.29
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 36682817.91 53534962.39
Total current assets 3881851791.87 3158840953.31
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
9 / 17The Third Quarter Report in 2022
Long-term equity investments 151406031.44 169959536.27
Other investments in equity instruments 146402400.00 56402400.00
Other non-current financial assets
Investment properties 69349497.02 70321868.00
Fixed assets 553359059.64 558981209.20
Construction in progress 177430957.16 108678896.27
Bearer biological assets
Oil and gas assets
Right of use assets
Intangible assets 424758523.08 397145124.29
Development expenditure
Goodwill
Long-term prepaid expenses 22255673.60 29756474.11
Deferred income tax assets 30463707.85 38796018.02
Other non-current Assets 4480386.91 44167303.56
Total non-current assets 1579906236.70 1474208829.72
Total assets 5461758028.57 4633049783.03
Current liabilities:
Short-term borrowings 200251506.85 200251506.85
Loans from the central bank
Taking from banks and other financial institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 64606867.00 79156771.40
Accounts payable 678833258.07 404026241.16
Receipts in advance 527929.95 173769.85
Contract liabilities 115157348.57 91151985.32
Financial assets sold under repurchase agreements
Customer deposits and deposits from banks and other
financial institutions
Funds from securities trading agencies
Funds from underwriting securities agencies
Employee benefits payable 117186385.92 78649049.72
Taxes payable 109722579.78 99893176.97
10 / 17The Third Quarter Report in 2022
Other payables 227670691.33 62162153.55
Including: Interest payable
Dividends payable
Fees and commissions payable
Amounts payable under reinsurance contracts
Held-for-sale liabilities
Non-current liabilities due within one year
Other current liabilities 11562619.94 9521415.32
Total current liabilities 1525519187.41 1024986070.14
Non-current liabilities:
Insurance contract reserves
Long-term borrowings
Bonds payable 718644660.27 695586778.80
Including: Preferred stock
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions 8456756.79 10812084.88
Deferred income 4856945.83 6416263.33
Deferred income tax liabilities 7523121.46 8408158.81
Other non-current liabilities
Total non-current liabilities 739481484.35 721223285.82
Total liabilities 2265000671.76 1746209355.96
Owner’s equity (or shareholders’ equity ):
Paid-in capital (or share capital) 283519194.00 201009966.00
Other equity instruments 50906662.82 50956622.11
Including: Preferred stock
Perpetual bonds
Capital reserve 890391200.83 834272205.66
Less: Treasury shares 164976000.00 5628128.21
Other comprehensive income -1611822.41 -1247674.10
Special reserve
Surplus reserve 100634780.00 100634780.00
11 / 17The Third Quarter Report in 2022
General risk reserve
Retained profits 2019424650.94 1696978064.52
Total owners’ equity (or shareholders’ equity) attributable 3178288666.18 2876975835.98
to equity holders of the parent company
Minority interests 18468690.63 9864591.09
Total owners’ equity (or shareholders’ equity) 3196757356.81 2886840427.07
Total liabilities and owners’ equity (shareholders’ 5461758028.57 4633049783.03
equity)
The chairman of the Company: CFO of the Company: WANG Head of Accounting
HOU Juncheng Li Department: WANG Li
Consolidated Income Statement
January to September 2022
Prepared by: Proya Cosmetics Co. Ltd.Unit: Yuan Currency: RMB Audit Type: Unaudited
First three quarters of First three quarters of
Item 2022 2021
(Jan. to Sep.) (Jan. to Sep.)
I. Total operating income 3962074031.96 3012251856.14
Including: Operating revenue 3962074031.96 3012251856.14
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 3246045594.62 2570351426.19
Including: Operating costs 1211286056.12 1066572027.42
Interest expenses
Fee and commission expenses
Surrenders
Claims and policyholder benefits (net of
amounts recoverable from reinsurers)
Charges in insurance contract reserves
(net of reinsurers’ share)
Insurance policyholder dividends
Expenses for reinsurance accepted
Taxes and surcharges 35018710.91 26755664.49
12 / 17The Third Quarter Report in 2022
Selling expenses 1700908422.25 1262122598.38
General and administrative expenses 235718481.10 165503097.12
Research and development expenses 95367183.34 52455578.02
Financial expenses -32253259.10 -3057539.24
Including: Interest expenses 9827780.80 7219717.71
Interest income 42468258.19 17843073.35
Add: Other income 23810575.67 12758859.43
Investment income (Loss is indicated -6661294.54 -5257778.42
by “-”)
Including: Income from investments in -6658316.04 -5254232.18
associates and joint ventures
Income from derecognition of financial
assets measured at amortized cost
Foreign exchange gains (Loss is indicated
by “-”)
Net exposure hedging income (Loss is
indicated by “-”)
Income from changes in fair value (Loss is
indicated by “-”)
Impairment losses of credit (Loss is 2180709.67 -2144694.51
indicated by “-”)
Impairment losses of assets (Loss is -113537444.60 -20365487.85
indicated by “-”)
Income from disposal of assets (Loss is -1416.28
indicated by “-”)
III. Operating profit (Loss is indicated by “-”) 621820983.54 426889912.32
Add: Non-operating income 612654.73 144171.60
Less: Non-operating expenses 916605.93 63373.82
IV. Total profit (Total loss is indicated by “-”) 621517032.34 426970710.10
Less: Income tax expenses 117310409.13 79816536.07
V. Net profit (Net loss is indicated by “-”) 504206623.21 347154174.03
(I) Classified by the nature of continuing operations
1. Net profit from continuing operations (Net 504206623.21 347154174.03
loss is indicated by “-”)
2. Net profit from discontinued operations (Net
loss is indicated by “-”)
(II) Classified by ownership
1. Net profit attributable to shareholders of the 495315157.18 364296789.10
13 / 17The Third Quarter Report in 2022
parent company (Net loss is indicated by “-”)
2. Profit or loss attributable to minority 8891466.03 -17142615.07
interests (Net loss is indicated by “-”)
VI. Other comprehensive income net of tax -364148.31 -733371.78
(I) Other comprehensive income attributable to -364148.31 -733371.78
owners of the parent company net of tax
1. Other comprehensive income that cannot be
subsequently reclassified to profit or loss
(1) Changes from re-measurement of defined
benefit plans
(2) Other comprehensive income that cannot be
reclassified to profit or loss under the equity
method
(3) Changes in fair value of other investments
in equity instruments
(4) Changes in fair value of enterprises’ own
credit risks
2. Other comprehensive income that will be -364148.31 -733371.78
reclassified to profit or loss
(1) Other comprehensive income that will be
reclassified to profit or loss under the equity
method
(2) Changes in fair value of other debt
investments
(3) Amounts of financial assets reclassified into
other comprehensive income
(4) Provision for credit impairment of other
debt investments
(5) Reserve for cash flow hedges
(6) Translation differences of financial -364148.31 -733371.78
statements denominated in foreign currencies
(7) Others
(II) Other comprehensive income attributable to
minority interests net of tax
VII. Total comprehensive income 503842474.90 346420802.25
(I) Total comprehensive income attributable to 494951008.87 363563417.32
owners of the parent company
(II) Total comprehensive income attributable to 8891466.03 -17142615.07
minority interests
VIII. Earnings per share
14 / 17The Third Quarter Report in 2022
(I) Basic earnings per share (RMB/share) 1.76 1.82
(II) Diluted earnings per share (RMB/share) 1.74 1.81
In case of business combination under common control net profit realized by the combined before the
combination in the current period was RMB0.00; net profit realized by the combined in the previous
period was RMB0.00.The chairman of the Head of Accounting
CFO of the Company: WANG Li
Company: HOU Juncheng Department: WANG Li
Consolidated Cash Flow Statement
January to September 2022
Prepared by: Proya Cosmetics Co. Ltd.Unit: Yuan Currency: RMB Audit Type: Unaudited
First three quarters of First three quarters of
Item 2022 2021
(Jan. to Sep.) (Jan. to Sep.)
I. Cash flows from operating activities:
Cash receipts from the sale of goods and the rendering of 4420753595.68 3372200521.00
services
Net increase in customer deposits and deposits from
banks and other financial institutions
Net increase in loans from the central bank
Net increase in taking from other financial institutions
Cash payments for claims and policyholders’ benefits
under direct insurance contracts
Net cash receipts from reinsurance business
Net cash receipts from policyholders’ deposits and
investment contract liabilities
Cash receipts from interest fees and commissions
Net increase in taking from banks and other financial
institutions
Net increase in financial assets sold under repurchase
arrangements
Net cash received from securities trading agency
Receipts of tax refunds 5217273.91 18501241.84
Other cash receipts relating to operating activities 94308291.64 59335619.38
Sub-total of cash inflows from operating activities 4520279161.23 3450037382.22
15 / 17The Third Quarter Report in 2022
Cash payments for goods purchased and services 1333409994.35 1046478917.19
received
Net increase in loans and advances to customers
Net increase in balance with the central bank and due
from banks and other financial institution
Cash payments for claims and policyholders’ benefits
under direct insurance contracts
Net increase in placements with banks and other financial
institutions
Cash payments for interest fees and commissions
Cash payments for insurance policyholder dividends
Cash payments to and on behalf of employees 381128046.79 329997403.51
Payments of various types of taxes 398116900.07 336370801.47
Other cash payments relating to operating activities 1635750886.35 1246701763.29
Sub-total of cash outflows from operating activities 3748405827.56 2959548885.46
Net cash flow from operating activities 771873333.67 490488496.76
II. Cash flows from investing activities:
Cash receipts from disposals and recovery of investments
Cash receipts from investment income
Net cash receipts from disposals of fixed assets 1000.00
intangible assets and other long-term assets
Net cash receipts from disposals of subsidiaries and other
business entities
Other cash receipts relating to investing activities
Sub-total of cash inflows from investing activities 1000.00
Cash payments to acquire or construct fixed assets 98040024.48 163266984.07
intangible assets and other long-term assets
Cash payments to acquire investments 104185427.27 34206800.00
Net increase in pledged loans receivables
Net cash payments for acquisitions of subsidiaries and
other business units
Other cash payments relating to investing activities 61087857.19
Sub-total of cash outflows from investing activities 202225451.75 258561641.26
Net cash flow from investing activities -202225451.75 -258560641.26
III. Cash flows from financing activities:
Cash receipts from capital contributions 165676000.00 450000.00
Including: cash receipts from capital contributions from 700000.00 450000.00
16 / 17The Third Quarter Report in 2022
minority owners of subsidiaries
Cash receipts from borrowings 200000000.00 200000000.00
Other cash receipts relating to financing activities
Sub-total of cash inflows from financing activities 365676000.00 200450000.00
Cash repayments of borrowings 200000000.00 299000000.00
Cash payments for distribution of dividends or profits or 178569824.95 151549422.10
settlement of interest expenses
Including: payments for distribution of dividends or
profits to minority owners of subsidiaries
Other cash payments relating to financing activities 45800000.00 1647883.50
Sub-total of cash outflows from financing activities 424369824.95 452197305.60
Net cash flow from financing activities -58693824.95 -251747305.60
IV. Impact of foreign exchange rate changes on cash and -364148.31 -733371.78
cash equivalents
V. Net increase in cash and cash equivalents 510589908.66 -20552821.88
Add: Opening balance of cash and cash equivalents 2378334768.09 1401850754.88
VI. Closing balance of cash and cash equivalents 2888924676.75 1381297933.00
The chairman of the Company: CFO of the Company: Head of Accounting Department:
HOU Juncheng WANG Li WANG Li
In 2022 the company restates financial statements for the beginning of the year due to the
implementation of new accounting standards or interpretation thereof
□Applicable √N/A
Please be notified of above.Board of Director of Proya Cosmetics Co. Ltd.October 27 2022
