Quarterly Report ended 30 September 2018StockCode：002242 StockAbbreviation：Joyoung ReportNo：2018-054 Joyoung Co., Ltd
Quarterly Report
Ended 30 September 2018
Quarterly Report ended 30 September 2018 1. Important Statements
The board of directors, the board of supervisors, directors, supervisors and senior executives of the company shall be liable for the authenticity, exactness and completeness of the report, promise that there are no false records, misleading statements or serious loophole, and promise to bear separate and joint legal liabilities. All directors have attended the board meeting to review this quarterly report. Xuning WANG, CEO of the company; Jiantiao QIU, CFO of the company, and Miao Miao, Chief Accountant of Accounting Institution, declared that the quarterly financial statements should be true, accurate and complete.
Quarterly Report ended 30 September 2018 2 .Company Profile
(1) KeyAccountingDataandFinancialIndicators
WhethertheCompanyperformedanyretroactiveadjustmentorrestatementofpreviousyears'accountingdata:
□Yes√No
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|-|-|-|-|-|-|-|
||30September2018||31December2017||Flux(%)||
|Totalassets(RMBYuan)|5,192,103,739.21||5,350,746,142.18||-2.96%||
|NetassetsattributabletoshareholdersoftheCompany(RMBYuan)|3,586,743,713.50||3,574,555,421.97||0.34%||
||2018Q3|Flux(%)||Beginningoftheyeartotheendofthereportingperiod||Flux(%)|
|Operatingrevenues(RMBYuan)|1,798,543,653.86|0.08%||5,438,132,763.32||7.35%|
|NetprofitsattributabletoshareholdersoftheCompany(RMBYuan)|199,167,030.05|12.28%||569,207,402.17||5.68%|
|NetprofitsattributabletoshareholdersoftheCompanybeforenon-recurringgainsandlosses(RMBYuan)|172,822,292.08|7.23%||465,341,354.08||-3.16%|
|Netcashflowfromoperatingactivities(RMBYuan)|194,875,852.20|8.93%||418,462,966.54||246.11%|
|Basicearningspershare(RMBYuan/share)|0.26|13.04%||0.74||5.71%|
|Dilutedearningspershare(RMBYuan/share)|0.26|13.04%||0.74||5.71%|
|Weightedaveragereturnonnetassets|5.16%|0.63%||14.75%||0.25%|

 Non-recurringitemsandamount Unit：RMByuan
||||
|-|-|-|
|Item|Beginningoftheyeartotheendofthereportingperiod|Notes|
|Gainorlossfordisposalofnon-currentassets(includingthewriteoffoftheprovisionforimpairmentofassets)|12,719,572.17||
|GovernmentGrantincludedinthecurrentprofitandloss(closelyrelatedtothebusinessofthecompany,exclusiveofthequotaandquantitativegrantaccordingtothenationaluniformstandards）|33,195,343.99||
|Thegainandlossonthechangesinfairvalueandthedisposalofthetransactionfinancialassetsandliabilities(exclusivetheeffectivehedgingbusinessrelatedwiththenormalbusinessofthecompany)|9,986,735.05||
|OtherNon-Operatingincomeandexpensesbesidesthosementionedabove|2,004,212.08||
|Theinvestmentprofitfordisposalofsubsidiary|76,790,880.60|-|
|minus：impactontheincometax|30,774,397.26||
|impactontheMinority’sinterests(after-tax)|56,298.54||
|Total|103,866,048.09|--|

 Therewasnosuchnon-recurringitemsthatshouldbereclassifiedtotherecurringitems,accordingtothe“No.1oftheExplanatorynoteoncorporatedisclosureofpubliclyofferings–non-recurringgainsandlosses”.
Quarterly Report ended 30 September 2018 (2)ShareholdersandTheirShareholdingsattheEndofReportingPeriod
(a) Total number of common shareholders and the preference shareholders that with resumed voting rights, as well asthelistoftheTop10commonshareholders
unit：share
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|-|-|-|-|-|-|-|-|-|-|
|TotalnumberofcommonshareholdersattheendofReportingPeriod||35,352|TotalnumberofpreferenceshareholderswithresumedvotingrightsattheendofReportingPeriod(ifany)||||||0|
|Top10commonshareholders||||||||||
|Name|Nature||Shareholdingpercentage(%)||Commonshareholdingquantity|Restrictedcommonshareholdingquantity||Pledgedorfrozenshares||
|||||||||Status|Number|
|ShanghaiLihongNewTechnologyInvestmentCo.,Ltd.|Domesticnon-state-ownedcorporation||49.87%||382,751,496|||Pledged|288,403,436|
|||||||||Frozen|0|
|BILTINGDEVELOPMENTSLIMITED|Foreigncorporation||16.93%||129,924,090|||||
|CentralHuijinInvestmentLtd|State-ownedcorporation||4.99%||38,310,500|||||
|NationalSocialSecurityFundNo.113|Otherdomesticinvestor||1.63%||12,535,271|||||
|FeiQIU|Domesticindividual||0.58%||4,453,100|||||
|ChinaResourcesSziticTrustCo.,Ltd–No.23TrustPlansofAssembledFunds|Otherdomesticinvestor||0.55%||4,195,387|||||
|ChinaResourcesSziticTrustCo.,Ltd–No.13TrustPlansofAssembledFunds|Otherdomesticinvestor||0.54%||4,167,400|||||
|NationalpensioncontributionsFundNo.1207|Otherdomesticinvestor||0.47%||3,593,061|||||
|NationalpensioncontributionsFundNo.1005|Otherdomesticinvestor||0.43%||3,285,710|||||
|BankofChina－Dachengpreferredmixedsecuritiesinvestmentfund（LOF）|Otherdomesticinvestor||0.41%||3,122,836|||||
|Top10shareholdersofunrestrictedintermsofsale||||||||||
|Name||||Shareamountofunrestrictedintermsofsale|||Type|||
||||||||Type||amount|
|ShanghaiLihongNewTechnologyInvestmentCo.,Ltd.||||382,751,496|||RMBcommonstocks||382,751,496|
|BILTINGDEVELOPMENTSLIMITED||||129,924,090|||RMBcommonstocks||129,924,090|
|CentralHuijinInvestmentLtd||||38,310,500|||RMBcommonstocks||38,310,500|
|NationalSocialSecurityFundNo.113||||12,535,271|||RMBcommonstocks||12,535,271|
|FeiQIU||||4,453,100|||RMBcommonstocks||4,453,100|
|ChinaResourcesSziticTrustCo.,Ltd–No.23TrustPlansofAssembledFunds||||4,195,387|||RMBcommonstocks||4,195,387|
|ChinaResourcesSziticTrustCo.,Ltd–No.13TrustPlansofAssembledFunds||||4,167,400|||RMBcommonstocks||4,167,400|
|NationalpensioncontributionsFundNo.1207||||3,593,061|||RMBcommonstocks||3,593,061|
|NationalpensioncontributionsFundNo.1005||||3,285,710|||RMBcommonstocks||3,285,710|

Quarterly Report ended 30 September 2018
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|-|-|-|-|
|BankofChina－Dachengpreferredmixedsecuritiesinvestmentfund（LOF）|3,122,836|RMBcommonstocks|3,122,836|
|Relatedoracting-in-concertpartiesamongshareholdersabove|TheCompanyisunawareofwhethertherearerelatedoracting-in-concertpartiesamongshareholdersabove,whichisdefinedbythe“RegulationActofListCompanies’Acquisition”.|||
|Explanationonthetop10commonshareholdersparticipatinginsecuritiesmargintrading(ifany)|N/A|||

Thecompany'stop10commonshareholdersandthetop10commonshareholderswithunrestrictedintermsofsalehadn’tengage intheagreedrepurchasetransactionsduringthereportingperiod.
(b)Thetotalamountofthepreferenceshareholdersandthetop10preferenceshareholders
□available√notavailable
Quarterly Report ended 30 September 2018 3 .Important matters
(1) The situation and the reasons for the fluctuation of the main financial data and index during the reportingperiod
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|Items|BeginningoftheyeartotheendoftheSeptember2018|BeginningoftheyeartotheendoftheSeptember2017|Flux(%)|Notes|
|Financialexpenses-net|-16,077,864.78|1,672,253.28|-1061.45%|Duetotheexchangeearningsfromthefluctuationsinexchangerate|
|assetsimpairmentloss|12,166,788.52|17,763,765.61|-31.51%|Duetothedecreaseintheamountofimpairmentonthebasisofthegroup'sbaddebtpolicy.|
|Investmentincome|131,355,402.02|50,305,148.26|161.12%|DuetothedisposalofJoyoungSuzhoucompanyandthedividendsfromjointventures|
|including：Investmentincomefromjointventures|39,720,292.24|24,733,193.38|60.60%|Duetothedividendsfromjointventures|
|Assetsdisposalincome|12,719,572.17|220,917.58|5657.61%|Duetothegovernment'scompensationtothelandandbuildingongroundinZhangqiu,Shandong.|
|minus：Non-operatingexpenses|6,374,674.57|4,730,091.13|34.77%|Duetotheincreaseinthelossoffixedassetsinthereportingperiod.|
|Minorityinterests|-3,853,695.47|15,218,188.03|-125.32%|Duetothenewsubsidiary:SharkNinja(China)isstillataloss.|
|Othercomprehensiveincome,netoftax|-2,274,842.44|-217,107.98|-947.79%|DuetotheincreasedconversiondifferencesinForeigncurrencyfromthefluctuationsinexchangerate|
|Totalcomprehensiveincomeattributabletominorityinterests|-3,853,695.47|15,218,188.03|-125.32%|Duetothenewsubsidiary:SharkNinja(China)isstillataloss.|
|Cashreceivedrelatingtootheroperatingactivities|119,993,601.19|88,392,420.13|35.75%|Duetotheincreaseofthedeposit.|
|Cashpaidrelatingtootheroperatingactivities|887,214,704.65|645,668,246.04|37.41%|Duetotheincreaseinadvertisingexpenseandterminalupgradingandtransformationcosts.|
|Netcashflowsfromoperatingactivities|418,462,966.54|120,905,521.88|246.11%|Duetothesalesincreaseinthecurrentperiod,resultinginanincreaseincashinflows.|
|Cashreceivedfromreturnsoninvestments|76,010,375.74|28,059,804.44|170.89%|Duetothedividendsfromjointventures|

Quarterly Report ended 30 September 2018
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|-|-|-|-|-|
|Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets|47,390,251.34|1,470,270.00|3123.23%|Duetothegovernment'scompensationtothelandandbuildingongroundinZhangqiu,Shandong.|
|Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits|103,683,299.35|6,800,000.00|1424.75%|DuetothedisposalofJoyoungSuzhoucompany|
|Cashreceivedrelatingtootherinvestingactivities|1,085,000,000.00|2,485,200,000.00|-56.34%|Duetothereductionoftheexpiredfinancialproductsinflowsduringthecurrentperiod.|
|Sub-totalofcashinflowsfrominvestmentactivities|1,320,469,218.58|2,521,530,074.44|-47.63%|Duetothereductionoftheexpiredfinancialproductsinflowsduringthecurrentperiod.|
|Cashpaidtoacquirefixedassets,intangibleassetsandotherlong-termassets|128,722,563.33|23,421,108.72|449.60%|Duetothepurchaseofrealestateinthecurrentperiod.|
|Cashpaidrelatingtootherinvestingactivities|955,000,000.00|2,325,000,000.00|-58.92%|Duetothereductionofthepurchasingfinancialproductsduringthecurrentperiod.|
|Sub-totalofcashoutflowsfrominvestmentactivities|1,134,215,571.58|2,396,339,419.10|-52.67%|Duetothereductionofthepurchasingfinancialproducts.|
|Netcashflowsfrominvestingactivities|186,253,647.00|125,190,655.34|48.78%|Duetothedividendsfromjointventuresanddisposalofsubsidiary.|
|Cashreceivedfromcapitalcontributions|24,500,000.00|800,000.00|2962.50%|Duetotheacquisition51%shareholdersofSharkNinja(China)incurrentperiod,resultinginanincreaseinminorityshareholderinput.|
|Cashreceivedrelatingtootherfinancingactivities|4,800,000.00|34,531,627.07|-86.10%|Thereisnobillsdiscountingthisreportingperiod,andthecompanyreceivedtheequityincentivefundsfromemployees|
|Cashpaymentsfordistributionofdividends,profitsorinterestexpenses|533,757,728.00|23,140,000.00|2206.65%|Duetothedistributionofdividendsforcommonstockthisperiod.|
|including：Cashpaymentsfordistributionofdividends,profitsorinterestexpensestominorityinterestinSubsidiary|0.00|23,140,000.00|-100.00%|Thereisnodistributingdividendstominorityshareholdersduringthecurrentperiod.|
|Sub-totalofcashoutflowsfromfinancingactivities|697,850,546.96|193,844,078.42|260.01%|Duetothedistributionofdividendsforcommonstockthisperiod.|
|Netcashflowsfromfinancingactivities|-668,550,546.96|-158,512,451.35|-321.77%|Duetothedistributionofdividendsforcommonstockthisperiod.|
|Effectofforeignexchangeratechangesoncashandcashequivalents|13,698,259.12|-8,095,356.37|269.21%|Duetotheexchangeearningsfromthefluctuationsinexchangerate|
|Netincreaseincashandcash|-50,135,674.30|79,488,369.50|-163.07%|Duetothedistributionofdividendsfor|

Quarterly Report ended 30 September 2018
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|-|-|-|-|-|
|equivalents||||commonstockthisperiod,andthereductionofexpiredfinancialproductsinflows|
|Items|30September2018|31December2017|Flux(%)|Notes|
|Accountsreceivable|223,988,506.26|128,531,167.00|74.27%|duetotheincreaseinsalesduringthecurrentperiod|
|Advancestosuppliers|103,261,227.74|7,337,681.34|1307.27%|DuetoadvancepaymenttoSuppliers.|
|Otherreceivables|50,326,845.18|29,848,168.74|68.61%|Duetotheincreaseinbusinessreservefunds.|
|Othercurrentassets|211,373,728.42|368,656,744.17|-42.66%|Duetothematureofseveralfinancialproductsattheendofthereportingperiod.|
|Constructioninprogress|1,117,378.41|568,244.33|96.64%|Duetotheincreaseinconstructionprojects.|
|Long-termprepaidexpenses|21,291,880.11|406,875.00|5133.03%|Duetotheamortizationcostofthemarketingfee.|
|Advancesfromcustomers|279,844,114.18|181,961,910.25|53.79%|Duetotheincreaseinsalesresultedinanincreaseinadvance.|
|Payrollpayments|35,616,573.98|190,215,056.41|-81.28%|Duetothepaidthelastyear’sannualbonusduringthisperiod.|
|TaxesPayable|38,863,458.21|148,228,320.54|-73.78%|Duetothetaxpaymentinthisperiod.|
|Currentportionofnon-currentliabilities|1,440,000.00|-|100.0%|Becausethecompanyshouldbooktheliabilitiesaccordingtotheequityincentiveplan,thebalanceisthematureamountattheendof2018.|
|Othernon-currentliabilities|3,028,571.41|5,274,285.70|-42.58%|Duetothenormalamortizationofthecompany'soutstandingearningsduringthecurrentperiod.|
|Totalnon-currentliabilities|3,792,033.92|6,095,807.25|-37.79%|Duetothenormalamortizationofthecompany'soutstandingearningsduringthecurrentperiod.|
|minus：treasurystock|8,211,947.03|64,941,904.13|-87.35%|Becausethecompanygrantthetreasurystocktoemployeethisperiod.|
|Othercomprehensiveincome|-5,386,562.03|-3,111,719.59|-73.11%|DuetotheincreasedconversiondifferencesinForeigncurrencyfromthefluctuationsinexchangerate|
|Minorityinterests|28,308,574.20|7,662,269.67|269.45%|Duetotheacquisition51%shareholdersofSharkNinja(China)incurrentperiod,resultinginanincreaseinminorities’interest.|

 (2)AnalysisoftheprogressofimportantmattersandtheirimpactandSolutions
(a)OnFebruary14,2018,thecompanyreceivedaletterfromthemajorityshareholder,ShanghaiLihongCompany,in
whichShanghaiLihongCompanywillincreasethecompany’sshareswithitsownandself-financedfundsbymeansof
centralizedbiddingtransactionsfromthesecondarymarket.Thecumulativeamountoftheincreasedsharesisnotlessthan
Quarterly Report ended 30 September 20181%andnomorethan2%ofthecompany'stotalequity.Fordetails,pleaserefertothereportof2018-008and2018-041on Cninfowebsite.
(b)InFebruary2018,thecompanysignedtheInvestmentCooperationFrameworkAgreementwithSharkNinja(HongKong)CompanyLimited.Thecompanyintendstoacquire51%shareholdersofSharkNinja(China)TechnologyCo.,Ltd,a subsidiaryofSharkNinja(HongKong)CompanythatlocatedinmainlandChina.InApril2018,the8thmeetingofthe4thBoardofDirectorsofthecompanyexaminedandapprovedthe"ProposalontheAcquisitionof51%EquityofSharkNinja (China)TechnologyCo.,LtdandRelatedTransactions",andagreedthecompanyuseitsowncapitalofRMB12.495millionto completetheacquisition.InJuly2018,thetwopartssignedtheagreementonequitytransfer.InAugust2018,thecompany registeredthechangewiththeindustryandCommerceAdministrationauthorities.Fordetails,pleaserefertothe
announcementof2018-007,2018-018and2018-043onCninfowebsite.
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|-|-|-|
|Overviewofimportantmatters|Dateofdisclosure|websiteindexforthereportdisclosure|
|ShanghaiLihongCompanyincreasedthecompany’sshares,whichisthecontrollingshareholders|22February2018|PleaserefertoAnnouncementaboutincreasingthecompany’sshareholdersbycontrollingshareholdersonCninfowebsite.|
||11June2018|PleaserefertoAnnouncementabouttheprogressofincreasingthecompany’sshareholdersbycontrollingshareholdersonCninfowebsite.|
|Thecompanyacquire51%shareholdersofSharkNinja(China)TechnologyCo.,Ltd|9February2018|PleaserefertoAnnouncementaboutthesigningoftheInvestmentCooperationFrameworkAgreementonCninfowebsite.|
||21April2018|PleaserefertoAcquisitionof51%EquityofSharkNinja(China)TechnologyCo.,LtdandRelatedTransactionsonCninfowebsite.|
||11July2018|Pleaserefertotheprogressoftheacquisitionof51%equityofSharkNinja(China)TechnologyCo.,LtdonCninfowebsite.|

(3) Commitments made by the actual controller, shareholders, related parties, purchasers and other relevantpartiesthathavenotbeenfulfilledthecorrespondentpromisewithinthereportingperiod Thereisnosuchcasesduringthereportingperiod.
(4)Forecastoperatingperformancein2018
Projectedbusinessperformancein2018：Thenetprofitattributabletoshareholdersoflistedcompaniesispositiveanddoesnotbelongtothe situationofturninglossesintoprofits.
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|-|-|-|-|
|Netprofitmarginattributabletoshareholdersofthecompanyin2018|-20.00%|To|20.00%|
|Netprofitfluctuationattributabletoshareholdersofthecompanyin2018(RMBTenthousandYuan)|55,113.50|To|82,670.24|
|Netprofitattributabletoshareholdersofthecompanyin2017(RMBTenthousandYuan)|68,891.87|||
|Reasonsforfluctuationinperformance|Againstthebackdropofrisingproductioncostsandfiercecompetitionintheindustry,thecompanywillcontinuetoadheretothe"valuemarketing"andinnovatetointroducethenewproductswithmore"highvalue,highquality,highfacevalue",whileinsistonbrandpromotionandchannelconstruction,anddevoteitselftoenhancebrandvalueandprofitability.|||

Quarterly Report ended 30 September 2018 (5)Financialassetsmeasuredatfairvalue
□available√notavailable
(6)Illegalexternalguarantee
None
(7)TheNon-operatingfundsoccupationofthecontrollingshareholdersanditsrelatedparties
None
(8)TrustInvestment
None.
(9)Registrationformsforresearch,communicationandinterviewsduringthereportingperiod.
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|-|-|-|-|
|Date|Receptionmethod|ReceptionObjectType|Basicinformationindex|
|24August2018|Onsite|institution|Pleaserefertothecompany’sactivityrecordforinvestorrelationshipson24August2018onCninfowebsite.|
|18September2018|Onsite|institution|Pleaserefertothecompany’sactivityrecordforinvestorrelationshipson18and19September2018onCninfowebsite.|
|19September2018|Onsite|institution||