Stock Code: 603605 Stock Abbreviation: Proya

Bond Code: 113634 Bond Abbreviation: Proya Convertible Bond

Proya Cosmetics Co. Ltd.Third Quarter Report 2026

The Board of Directors and all directors of the Company guarantee that there are no false

records misleading statements or material omissions in the content of this announcement

and bear legal responsibility for the truthfulness accuracy and completeness of its content.Key Information Highlights:

The Board of Directors all directors and senior management of the Company hereby guarantee that the contents

of this quarterly report are true accurate and complete and that there are no false records misleading statements

or material omissions. They shall bear individual and joint legal liability for the authenticity accuracy and

completeness of the information contained herein.The person in charge of the Company the person responsible for accounting work and the head of the accounting

department (accounting officer) hereby guarantee that the financial information contained in this quarterly report

is true accurate and complete.Were the third-quarter financial statements audited

□Yes √ No

I. Key Financial Data

(I) Key accounting data and financial indicators

Unit: Yuan Currency: RMB

YoY change in

the period from

YOY change From the beginning

the beginning

in the of the year to the

Item The Reporting Period of the year to

Reporting end of the

the end of the

Period (%) Reporting Period

Reporting

Period (%)

Operating revenue 2252593983.84 29.76 7627394709.20 7.46

Total profit 145824080.45 -46.65 1485393218.92 16.79

Net profit attributable

to shareholders of the 88203021.45 -61.18 1256099520.86 22.46

listed company

Net profit attributable

to shareholders of the

listed company net of 79041917.30 -65.20 743276288.64 -25.50

non-recurring gains

and losses

Net cash flows from

Not applicable Not applicable 466699905.42 -61.06

operating activities

Basic earnings per

0.23 -59.65 3.20 23.55

share (RMB/share)

Diluted earnings per

0.23 -59.65 3.19 23.17

share (RMB/share)

Down by 2.65

Weighted average Up by 0.80 per

1.31 percentage 19.05

ROE (%) centage points

points

Change at the

end of the

End of the Reporting Reporting

End of prior year

Period Period over the

end of the prior

year (%)

Total assets 10256356075.05 8487416240.25 20.84

Owners’ Equity

attributable to

6340869593.99 6141055103.57 3.25

shareholders of the

listed company

Note: The “Reporting Period” refers to the three-month period from the beginning of this quarter to the end of

this current quarter as follows.(II) Items and amounts of non-recurring gains and losses

√ Applicable □ Not applicable

Unit: Yuan Currency: RMB

Amount in the period

Amount for the from the beginning of

Non-recurring profit and loss item Remarks

current period the year to the end of

the Reporting Period

Gains or losses arising from disposal of

non-current assets including write-offs of -133388.53 1481955.73

provision for asset impairment accrued

Government grants included in current

profit or loss (excluding government grants

that are closely related to the Company’s

normal business operations compliant with 7141184.56 56154055.27

national policies granted at set standards

and imposing sustaining influence on the

Company’s profit or loss)

Gains or losses arising from change in fair

value generated by financial assets and

financial liabilities held by non-financial

enterprises as well as gains or losses

11810902.84 27577628.04

arising from disposal of financial assets and

financial liabilities except for valid

hedging business related to the Company’s

normal business operations

Capital occupation fees charged to non-

financial enterprises and included in current

profit or loss

Gains or losses on authorizing others to

invest or manage assets

Gains or losses arising from entrusted loans

to external parties

Asset loss incurred by force majeure such

as natural disasters

Reversal of provision for impairment of

receivables individually tested for

impairment

Gains arising when the investment cost of

acquiring a subsidiary an associate or a

joint venture is less than the fair value of the

identifiable net assets of the investee

Net profit or loss of subsidiaries arising

from business combinations under common

control for the period from the beginning

of the Reporting Period to the combination

date

Gains or losses arising from exchange of

non-monetary assets

Gains or losses arising from debt

restructuring

One-off expenses incurred due to the

cessation of relevant operating activities

such as staffing expenses

One-off impact on current profit or loss

resulting from adjustments in tax

accounting or other laws and regulations

One-off share-based payment recognized

for cancellation and modification of equity

incentive plans

Gains or losses arising from changes in the

fair value of employee remuneration

payable under cash-settled share-based

payment after the vesting date

Gains or losses arising from changes in the

fair value of investment property

subsequently measured with the fair value

model

Gains arising from transactions with

unreasonable transaction price

Gains or losses arising from contingencies

unrelated to the Company’s normal

business operations

Custody fee income from entrusted

operations

Other non-operating revenue and expenses

-6531077.09 9649024.63

besides the above items

Other gains and losses items that conform

to the definition of non-recurring gains and 445360152.15

losses

Less: Effect of income tax 2561174.13 19916117.61

Impact of minority interests (after tax) 565343.50 7483465.99

Total 9161104.15 512823232.22

The reasons should be explained for the Company defining items not listed in the Explanatory Announcement

on Information Disclosure for Companies Offering Their Securities to the Public No. 1 – Non-Recurring Gains

and Losses as non-recurring gains and losses items of high value and defining the non-recurring gains and losses

items listed in the same document as recurring gains and losses items.√ Applicable □ Not applicable

Unit: Yuan Currency: RMB

Item Amount involved Reason

In a business combination achieved in

Income from business combination not stages through multiple transactions the

under common control achieved in stages acquirer remeasures its previously held

through multiple transactions_Amount 445360152.15 equity interest in the acquiree at its

from the beginning of the year to the end acquisition-date fair value. The difference

of the reporting period between the fair value and the carrying

amount is recognized as income which

given its incidental nature is classified as

non-recurring profit or loss.(III) Changes in key accounting data and financial indicators and reasons

√ Applicable □ Not applicable

Change ratio

Item Primary reasons

(%)

Total profit_The Reporting Period -46.65 Mainly due to an increase in brand

Net profit attributable to shareholders of promotion and advertising expenses: (1)

-61.18

the listed company_The Reporting Period During the launch period of the flagship

brand’s core hero products publicity and

promotional spending increased year-on-

year; (2) The brand sales mix shifted with

brands such as Flower Knows

Net profit attributable to shareholders of

INSBAHA Off&Relax and Awaken

the listed company net of non-recurring -65.20

Seeds entering a rapid growth phase

gains and losses_The Reporting Period

driving higher promotional investment;

(3) The channel structure and traffic

deployment cadence were adjusted in line

with market conditions.This was primarily due to the combined

Net cash flows from operating activities -

effect of an increase in brand promotion

from the beginning of the year to the end of -61.06

and advertising expenses and an increase

the Reporting Period

in payments for goods.Basic earnings per share (RMB/share)_The

-59.65

Reporting Period Mainly due to an increase in brand

Diluted earnings per share (RMB/share) promotion and advertising expenses.-59.65

_The Reporting Period

II. Shareholder information

(I) Total number of ordinary shareholders number of shareholders of preference shares whose voting

rights have been restored and top ten shareholders holding shares

Unit: Share

Total number of shareholders of preference

Total number of ordinary

shares whose voting rights have been

shareholders at the end of 71230 0

restored at the end of the Reporting Period

the Reporting Period

(if any)

Shareholdings of the top ten shareholders (excluding securities lending and refinancing)

Nature of Number of Shareholding Number of Pledged marked or

Name of shareholder

shareholders shares held ratio (%) restricted frozen

shares

held Share status Number

Domestic

HOU Juncheng 136739037 34.53 0 None

natural person

Domestic Pledged and 462093

FANG Yuyou 59625258 15.06 0

natural person Frozen 69

Hong Kong Securities

Clearing Company Others 3955688 1.00 0 None

Limited

Basic Pension Fund

Others 3865741 0.98 0 None

Portfolio No. 16032

Industrial and

Commercial Bank of

China Limited – CSI

Major Consumer Others 3183501 0.80 0 None

Exchange Traded Open-

End Index Securities

Investment Fund

Industrial and

Commercial Bank of

China Limited - Invesco

Others 2000000 0.51 0 None

Great Wall Emerging

Growth Hybrid Securities

Investment Fund

GU Jiyong Others 1828496 0.46 0 None

China Merchants Bank

Co. Ltd. - Dongfanghong

Ruize Three-year Holding Others 1822519 0.46 0 None

Period Hybrid Securities

Investment Fund

ZHAO Wentao Others 1760000 0.44 0 None

Hubei Province (No. 11)

Occupational Annuity

Others 1584940 0.40 0 None

Plan – Agricultural Bank

of China

Shareholdings of the top ten unrestricted shareholders (excluding securities lending and refinancing)

Type and number of shares

Number of unrestricted circulating shares

Name of shareholder Type of

held Number

shares

RMB

HOU Juncheng 136739037 ordinary 136739037

shares

RMB

FANG Yuyou 59625258 ordinary 59625258

shares

Hong Kong Securities RMB

Clearing Company 3955688 ordinary 3955688

Limited shares

Basic Pension Fund RMB

Portfolio No. 16032 3865741 ordinary 3865741

shares

Industrial and

Commercial Bank of

China Limited – CSI RMB

Major Consumer 3183501 ordinary 3183501

Exchange Traded Open- shares

End Index Securities

Investment Fund

Industrial and

Commercial Bank of

RMB

China Limited - Invesco

2000000 ordinary 2000000

Great Wall Emerging

shares

Growth Hybrid Securities

Investment Fund

RMB

GU Jiyong 1828496 ordinary 1828496

shares

China Merchants Bank

Co. Ltd. - Dongfanghong RMB

Ruize Three-year Holding 1822519 ordinary 1822519

Period Hybrid Securities shares

Investment Fund

RMB

ZHAO Wentao 1760000 ordinary 1760000

shares

Hubei Province (No. 11)

RMB

Occupational Annuity

1584940 ordinary 1584940

Plan – Agricultural Bank

shares

of China

Explanation on the

association or concerted

Fang Yuyou is the younger brother of Hou Juncheng's spouse Fang Aiqin so there is an

action among the

associated relationship between Hou Juncheng and Fang Yuyou.shareholders mentioned

above

Explanation on the

securities lending and

refinancing among the top

Not applicable

ten shareholders and top

ten unrestricted

shareholders (if any)

Note: As of the end of the Reporting Period 3654212 shares of the Company were held in the Company’s special

securities account for repurchase representing 0.92% of the total share capital of the Company.Securities lending and refinancing involved by shareholders holding more than 5% shares the top ten

shareholders and the top ten shareholders of unrestricted circulating shares

□ Applicable √ Not applicable

Change in the top ten shareholders and the top ten shareholders of unrestricted circulating shares over the

previous period due to securities lending and refinancing/their returning

□ Applicable √ Not applicable

III. Other Matters to Note

Other important information regarding the Company’s operating performance during the Reporting Period that

investors should be aware of.□ Applicable √ Not applicable

IV. Quarterly Financial Statements

(I) Type of audit opinion

□ Applicable √ Not applicable

(II) Financial Statements

Consolidated Balance Sheet

September 30 2026

Prepared by: Proya Cosmetics Co. Ltd.Unit: Yuan Currency: RMB Type of Audit: Unaudited

Item September 30 2026 December 31 2025

Current assets:

Monetary capital 3009133925.93 5060981558.27

Provision for settlement

Placements with banks and other financial

institutions

Financial assets held for trading 1657373765.50

Derivative financial assets

Notes receivable

Accounts receivable 294588345.50 70150618.87

Receivables financing 2318053.00 2491804.24

Prepayments 371715033.21 169434798.38

Premiums receivable

Reinsurance accounts receivable

Provision for reinsurance contract

receivables

Other receivables 92586414.59 31038260.10

Including: Interest receivable

Dividends receivable 20000000.00

Financial assets purchased under resale

agreements

Inventory 1175118005.44 634717582.47

Including: Data resources

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 172229744.72 167604306.60

Total current assets 6775063287.89 6136418928.93

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 197961870.55 441303737.68

Other equity instrument investments 182991372.15 78767098.06

Other non-current financial assets

Investment property 62521373.15 62924414.65

Fixed assets 850303723.34 893123172.84

Construction in progress 253505545.11 128341121.16

Productive biological assets

Oil and gas assets

Right-of-use assets 24943115.32 27117353.69

Intangible assets 642056804.18 443885112.10

Including: Data resources

Development expenditure

Including: Data resources

Goodwill 923541784.87

Long-term deferred expenses 72768795.68 110663098.70

Deferred income tax assets 252747292.81 149070224.51

Other non-current assets 17951110.00 15801977.93

Total non-current assets 3481292787.16 2350997311.32

Total assets 10256356075.05 8487416240.25

Current liabilities:

Short-term borrowings 80052800.00

Borrowings from the central bank

Placements from banks and other

financial institutions

Financial liabilities held for trading

Derivative financial liabilities

Notes payable

Accounts payable 1346428934.13 798463950.20

Receipts in advance 186007.64 345362.16

Contract liabilities 265145675.31 167287402.83

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 remuneration payable 148862579.46 161389606.41

Taxes payable 169126311.17 94748550.72

Other payables 502034774.38 45208485.79

Including: Interest payable

Dividends payable 462254069.66

Fees and commissions payable

Reinsurance accounts payable

Held-for-sale liabilities

Non-current liabilities due within one

10937176.75 7738217.76

year

Other current liabilities 25854225.64 18877890.19

Total current liabilities 2468575684.48 1374112266.06

Non-current liabilities:

Insurance contract reserves

Long-term borrowings

Bonds payable 831811409.90 804392073.95

Including: Preference shares

Perpetual bonds

Lease liabilities 12838534.23 19709565.95

Long-term payables

Long-term employee remuneration

payable

Estimated liabilities

Deferred income 21401038.15 22680204.91

Deferred income tax liabilities 52515163.85

Other non-current liabilities

Total non-current liabilities 918566146.13 846781844.81

Total liabilities 3387141830.61 2220894110.87

Owner’s equity (or shareholders’ equity):

Paid-in capital (or share capital) 395976172.00 395975998.00

Other equity instruments 50888804.93 50890120.00

Including: Preference shares

Perpetual bonds

Capital reserve 829679642.10 825300520.47

Less: Treasury shares 320956444.21 192144659.13

Other comprehensive income -66590067.42 -67081795.57

Special reserve

Surplus reserve 198411582.50 198411582.50

General risk reserve

Undistributed profits 5253459904.09 4929703337.30

Total owner’s equity (or shareholders’

6340869593.99 6141055103.57

equity) attributable to the parent company

Minority interests 528344650.45 125467025.81

Total owner’s equity (or shareholders’

6869214244.44 6266522129.38

equity)

Total liabilities and owners’ equity (or

10256356075.05 8487416240.25

shareholders’ equity)

Chairman of the Company: HOU Juncheng CFO of the Company: JIN Chang

Head of Accounting Department: MA Nan

Consolidated Income Statement

January-September 2026

Prepared by: Proya Cosmetics Co. Ltd.Unit: Yuan Currency: RMB Type of Audit: Unaudited

The first three quarters of

First three quarters of 2025

Item 2026

(January-September)

(January-September)

I. Total operating revenue 7627394709.20 7097899849.33

Including: Operating revenue 7627394709.20 7097899849.33

Interest income

Premiums earned

Fees and commission

income

II. Total operating costs 6714049131.03 5855768198.52

Including: Operating costs 2060941276.85 1867128487.97

Interest expenses

Fees and commissions

expenses

Surrenders

Net compensation

expenses

Net provision for insurance

liability reserves

Insurance policy dividend

expenses

Reinsurance expenses

Taxes and surcharges 57980475.68 60565990.35

Sales expenses 4059592324.15 3525239516.44

Administrative expenses 382463160.73 290164810.57

R&D expenses 150360123.73 141892170.50

Financial expenses 2711769.89 -29222777.31

Including: Interest

27938154.85 23914050.19

expenses

Interest income 30873324.30 46750608.77

Add: Other income 62315395.19 57237116.15

Investment income (“-” for

549418445.02 6420566.35

losses)

Including: Investment

income from associates and joint 79823996.33 11444227.90

ventures

Gains from

derecognition of financial assets

measured at amortized cost

Foreign exchange gains

(“-” for losses)

Net gain on exposure

hedging (“-” for losses)

Gains on changes in fair

3343331.50

value (“-” for losses)

Credit impairment losses

-15075575.85 7287063.65

(“-” for losses)

Asset impairment losses

-39084935.47 -40003598.59

(“-” for losses)

Gains from disposal of

1483283.14 -647921.76

assets (“-” for losses)

III. Operating profit (“-” for losses) 1475745521.70 1272424876.61

Add: Non-operating revenue 20892572.37 721299.11

Less: Non-operating expenses 11244875.15 1295754.10

IV. Total profit (“-” for total losses) 1485393218.92 1271850421.62

Less: Income tax expenses 174771069.56 216849451.38

V. Net profit (“-” for net losses) 1310622149.36 1055000970.24

(I) Classified by operation continuity

1. Net profit from continuing

1310622149.36 1055000970.24

operations (“-” for net losses)

2. Net profit from

discontinued operations (“-” for net

losses)

(II) Classified by ownership

1. Net profit attributable to

shareholders of the parent company 1256099520.86 1025700052.65

(“-” for net losses)

2. Profit or loss attributable to

54522628.50 29300917.59

minority interests (“-” for net losses)

VI. Other comprehensive income

408507.37 184912.71

net of tax

(I) Other comprehensive income

attributable to owners of the parent 491728.15 184912.71

company net of tax

1. Other comprehensive income

that cannot be reclassified into profit 1553916.09

or loss

(1) Changes arising from re-

measurement of defined benefit

plans

(2) Other comprehensive

income that cannot be reclassified

into profit or loss under the equity

method

(3) Changes in the fair value of

1553916.09

other equity instrument investments

(4) Changes in the fair value of

the Company’s own credit risks

(5) Others

2. Other comprehensive income

that will be reclassified into profit or -1062187.94 184912.71

loss

(1) Other comprehensive

income that can be reclassified into

profit or loss under the equity

method

(2) Changes in the fair value of

other debt investments

(3) Amount of financial assets

reclassified into other comprehensive

income

(4) Credit impairment

provisions of other debt investments

(5) Cash flow hedging reserve

(6) Conversion differences of

financial statements denominated in -1062187.94 184912.71

foreign currencies

(7) Others

(II) Other comprehensive income

attributable to minority interests net -83220.78

of tax

VII. Total comprehensive income 1311030656.73 1055185882.95

(I) Total comprehensive income

attributable to owners of the parent 1256591249.01 1025884965.36

company

(II) Total comprehensive income

54439407.72 29300917.59

attributable to minority interests

VIII. Earnings per share:

(I) Basic earnings per share

3.20 2.59

(RMB/share)

(II) Diluted earnings per share

3.19 2.59

(RMB/share)

In the case of a business combination under common control in the current period the net profit realized by the

combined party before the combination is RMB 0.00 and the net profit realized by the combined party in the

previous period is RMB 0.00.Chairman of the Company: HOU Juncheng CFO of the Company: JIN Chang

Head of Accounting Department: MA Nan

Consolidated Cash Flow Statement

January-September 2026

Prepared by: Proya Cosmetics Co. Ltd.Unit: Yuan Currency: RMB Type of Audit: Unaudited

The first three quarters of First three quarters of

Item 2026 2025

(January-September) (January-September)

I. Cash flows from operating activities:

Cash receipts from sales of goods and

8459484688.31 8048869273.19

rendering of services

Net increase in customer deposits and

deposits from banks and other financial

institutions

Net increase in borrowings from the

central bank

Net increase in placements from other

financial institutions

Cash receipts from premiums under

original insurance contracts

Net cash receipts from reinsurance

business

Net increase in deposits and investments

from policyholders

Cash receipts from interest fees and

commissions

Net increase in placements from banks

and other financial institutions

Net increase of returned business capital

Net cash receipts from securities trading

agency services

Receipts of tax refunds 6832799.80 2204162.73

Other cash receipts relating to operating

121390211.22 130064405.75

activities

Subtotal of cash inflows from operating

8587707699.33 8181137841.67

activities

Cash payments for goods purchased and

1968367827.70 1710978811.90

services received

Net increase in loans and advances to

customers

Net increase in deposits with the central

bank and other financial institutions

Cash paid for compensation payments

under original insurance contract

Net increase in placements with banks

and other financial institutions

Cash payments for interest fees and

commissions

Cash payments for policy dividends

Cash payments to and on behalf of

787691527.61 721570038.36

employees

Taxes and fees paid 732080189.34 774357744.04

Other cash payments relating to operating

4632868249.26 3775764028.74

activities

Subtotal of cash outflows from operating

8121007793.91 6982670623.04

activities

Net cash flows from operating activities 466699905.42 1198467218.63

II. Cash flows from investing activities:

Cash receipts from returns on investments 12335123602.42 99990000.00

Cash receipts from investments income 67160563.85 15999900.00

Net cash receipts from disposal of fixed

assets intangible assets and other long-term 5620035.86 2147103.67

assets

Net cash receipts from the disposal of

7850000.00

subsidiaries and other operating entities

Other cash receipts relating to investing

3027801.37 102075000.00

activities

Subtotal of cash inflows from investing

12410932003.50 228062003.67

activities

Cash payments for purchase and

construction of fixed assets intangible assets 136084832.31 92266560.21

and other long-term assets

Cash payments for investments 14045661737.30 437975763.00

Net increase in pledged loans

Net cash payments for acquisition of

135238701.70

subsidiaries and other operating entities

Other cash payments relating to investing

activities

Subtotal of cash outflows from investing

14316985271.31 530242323.21

activities

Net cash flows from investing activities -1906053267.81 -302180319.54

III. Cash flows from financing activities:

Cash receipts from capital contributions 286400.00

Including: Cash receipts by subsidiaries

286400.00

from minority shareholders’ investment

Cash receipts from borrowings 80000000.00

Other cash receipts relating to financing

activities

Subtotal of cash inflows from financing

80286400.00

activities

Cash payments for debt repayment 80002000.00

Cash payments for distribution of

dividends profits or payment of interest 471423311.60 472596233.39

expenses

Including: Dividends and profits paid

3692440.20

by subsidiaries to minority shareholders

Other cash payments relating to financing

142481241.00 18774674.26

activities

Subtotal of cash outflows from financing

693906552.60 491370907.65

activities

Net cash flows from financing activities -693906552.60 -411084507.65

IV. Effect of changes in foreign exchange

-1062187.94 184912.71

rates on cash and cash equivalents

V. Net increase in cash and cash

-2134322102.93 485387304.15

equivalents

Add: Opening balance of cash and cash

3934243638.77 2742569684.62

equivalents

VI. Closing balance of cash and cash

1799921535.84 3227956988.77

equivalents

Chairman of the Company: HOU Juncheng CFO of the Company: JIN Chang

Head of Accounting Department: MA Nan

(III) The first implementation of new accounting standards or interpretation of standards from 2026

involves adjustment to the financial statements at the beginning of the year of the first implementation

□ Applicable √ Not applicable

Hereby announced.Board of Directors of Proya Cosmetics Co. Ltd.October 29 2026