Stock Code: 002242 Stock Abbreviation: Joyoung Report No.2019-065 Joyoung Co., Ltd
Abstract of Third Quarterly Report of 2019
Joyoung Co., Ltd Abstract of Third Quarterly Report of 2019 Section I Important Statements
This is an abstract of Third Quarterly Report of 2019 (hereinafter referred to as the “Report”). Investors are kindly reminded to read the complete version of the Report 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 the Report, the full document version shall prevail.
The Board of Directors, the Supervisory Committee as well as all the directors, supervisors and senior management staff of Joyoung Co., Ltd. (hereinafter referred to as the “Company”) have warranted that this Report contains no false record, misleading statement or material omission. And they shall be jointly and severally liable for the factuality, accuracy and completeness of the information given in this Report.
All directors attended the board meeting that reviewed this Report.
Xuning WANG, Legal Representative 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.
Section II Company Profile
1. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment to or restatement of accounting data
□ Yes√ No
|||||||
|-|-|-|-|-|-|
||30 September 2019||31 December 2018||Flux (%)|
|Total assets (RMB Yuan)|6,228,140,934.50||6,660,086,381.54||-6.49%|
|Net assets attributable to shareholders of the Company|3,530,015,847.75||3,810,291,395.62|||
||||||-7.36%|
|(RMB Yuan)||||||
|||||From 1 January||
||From 1 July 2019 to 30|||||
|||Flux (%)||2019 to 30|Flux (%)|
||September 2019|||||
|||||September 2019||
|Operating revenues (RMB Yuan)|2,068,019,945.39|14.98%||6,254,990,267.26|15.02%|
|Net profits attributable to shareholders of the Company|211,822,515.10|||617,827,914.32||
|||6.35%|||8.54%|
|(RMB Yuan)||||||
|Net profits attributable to shareholders of the Company||||||
||205,099,809.10|18.68%||582,586,867.39|25.20%|
|before non-recurring gains and losses (RMB Yuan)||||||
|Net cash flow from operating activities (RMB Yuan)|745,207,988.94|282.40%||922,017,459.40|120.33%|
|Basic earnings per share (RMB Yuan /share)|0.28|7.69%||0.81|9.46%|
|Diluted earnings per share (RMB Yuan /share)|0.28|7.69%||0.81|9.46%|
|Weighted average ROE|5.49%|0.33%||16.01%|1.26%|

 Non-recurring gains and losses item and amount
Unit: RMB yuan
||||
|-|-|-|
||From 1 January 2019 to 30September 2019||
|Item||Note|
|Profit or loss from disposal of non-current assets (including the write off of the provision for impairment|||
||5,499,793.46||
|of assets)|||
|Government Grant included in the current profit and loss (closely related to the business of the(cid:13)|||
||26,734,353.98||
|company, exclusive of the quota and quantitative grant according to the national uniform standards)|||
|Except for effectively hedging business related to normal business operations of the Company, profit or|||
|loss arising from the change in the fair value of held-for-trading financial assets and liabilities, as well as|||
||13,522,115.34||
|investment profit or loss produced from the disposal of held-for-trading financial assets and liabilities|||
|and available-for-sale financial assets|||

Joyoung Co., Ltd Abstract of Third Quarterly Report of 2019
||||
|-|-|-|
|Other Non-Operating income and expenses besides those mentioned above|-1,784,214.94||
|Less: Corporate income tax|8,584,653.27||
|Minority interests (after tax)|146,347.64||
|Total|35,241,046.93|--|

 There were no such non-recurring items that should be reclassified to the recurring items, according to the<Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Non-Recurring Profits andLosses>
2. Total number of shareholders and shareholdings of the top ten shareholders at the period-end 2.1 Total number of common shareholders, total number of preferred shareholders with resumed voting rights at the end of the Reporting Period and shareholdings of the top ten common shareholders at the period-end
Unit: share
||||||||
|-|-|-|-|-|-|-|
|Total number of common shareholders at||Total number of preferred shareholders with resumed voting|||||
||27,044|||||0|
|the end of the Reporting Period||rights at the end of the Reporting Period (if any)|||||
|Top 10 common shareholders|||||||
||||Total shares|Number of|Pledged or frozen shares||
|||Shareholding|||||
|Name of shareholder|Nature of shareholder||held at the|restricted shares|||
|||percentage|||Status|Number|
||||period-end|held|||
|Shanghai Lihong Enterprise ManagementLimited|Domesticnon-state-ownedcorporation|50.11%|384,523,746||||
||||||Pledged|339,272,626|
|Bilting Developments Limited|Foreign corporation|16.93%|129,924,090||||
|Central Huijin Investment Ltd.|State-ownedcorporation|4.99%|38,310,500||||
|Hong Kong Securities Clearing Co., Ltd.|Foreign corporation|2.50%|19,218,928||||
|E Fund Management Co., Ltd. - SocialInsurance Fund Portfolio No. 1104|Others|1.55%|11,930,073||||
|Basic Pension Insurance Fund Portfolio No.1206|Others|0.54%|4,136,381||||
|AEGON INDUSTRIAL Fund ManagementCo., Ltd. - Industrial Bank Co., Ltd. -AEGON INDUSTRIAL - Stock DividendSpecific Multi-Client Asset ManagementPlan|Others|0.52%|3,979,442||||
|National Social Security Fund Portfolio No.502|Others|0.46%|3,508,647||||

Joyoung Co., Ltd Abstract of Third Quarterly Report of 2019
||||||||
|-|-|-|-|-|-|-|
|Agricultural Bank of China Co., Ltd. - CSI500 Exchange Trade Fund|Others||0.43%|3,299,581|||
|Basic Pension Insurance Fund Portfolio No.1205|Others||0.40%|3,041,324|||
|Top 10 non-restricted common shareholders|||||||
|||Number of non-restricted|||Type of shares||
|Name of shareholder|||||||
|||shares held|||Type of shares|Number|
|Shanghai Lihong Enterprise Management Limited||384,523,746|||RMB common stock|384,523,746|
|Bilting Developments Limited||129,924,090|||RMB common stock|129,924,090|
|Central Huijin Investment Ltd.||38,310,500|||RMB common stock|38,310,500|
|Hong Kong Securities Clearing Co., Ltd.||19,218,928|||RMB common stock|19,218,928|
|E Fund Management Co., Ltd. - Social Insurance FundPortfolio No. 1104||11,930,073|||||
||||||RMB common stock|11,930,073|
|Basic Pension Insurance Fund Portfolio No. 1206||4,136,381|||RMB common stock|4,136,381|
|AEGON INDUSTRIAL Fund Management Co., Ltd. -Industrial Bank Co., Ltd. - AEGON INDUSTRIAL - StockDividend Specific Multi-Client Asset Management Plan||3,979,442|||||
||||||RMB common stock|3,979,442|
|National Social Security Fund Portfolio No. 502||3,508,647|||RMB common stock|3,508,647|
|Agricultural Bank of China Co., Ltd. - CSI 500 ExchangeTrade Fund||3,299,581|||||
||||||RMB common stock|3,299,581|
|Basic Pension Insurance Fund Portfolio No. 1205||3,041,324|||RMB common stock|3,041,324|
|||Shanghai Lihong Enterprise Management Co., Ltd. and Builting Developments|||||
|||Limited, both controlled by Mr. Xuning WANG, are defined as acting-in-concert|||||
|Related or acting-in-concert parties among shareholders||parties by the Administrative Measures for the Takeover of Listed Companies. Other|||||
|above||than the aforementioned related and acting-in-concert parties, the Company is|||||
|||uncertain about whether there are related or acting-in-concert parties among|||||
|||shareholders above.|||||
|Explanation on the top 10 common shareholders|||||||
|participating in securities(cid:13)||N/A|||||
|margin trading (if any)|||||||

The company's top 10 common shareholders and the top 10 common shareholders with unrestricted in terms of salehadn’t engage in the agreed repurchase transactions during the reporting period.
2.2 Total Number of Preferred Shareholders and TOP 10 Preferred Shareholders and Their Shareholdings
□ Applicable√ Not applicable
Joyoung Co., Ltd Abstract of Third Quarterly Report of 2019 Section III Significant Events
1. Major Changes of Main Items in Financial Statements and Financial Indicators Within the Report Period, as well as the Reasons for the Changes
Unit: RMB yuan
||||||
|-|-|-|-|-|
||From 1 January|From 1 January|||
|Item|2019 to 30|2018 to 30|Flux (%)|Notes|
||September 2019|September 2018|||
||254,647,689.31|179,761,212.35|41.66%|Mainly due to the increase on wages and business travelexpenses of administrative staff and amortization of stockincentive expenses|
|General and administrative expenses|||||
|Financial expenses|-6,979,286.19|-16,077,864.78|-56.59%|Mainly due to less foreign exchange gains|
||52,824,492.32|131,355,402.02|-59.79%|Mainly due to the disposal of subsidiary and the dividendsfrom associated companies|
|Investment income|||||
|Including: income from associated|3,453,253.98|39,720,292.24|-91.31%|Mainly due to the dividends from associated companies|
|companies and joint ventures|||||
|Credit impairment losses|-8,577,774.25||100.00%|Mainly due to the changes of accounting policy thatreceivables and other receivables are included in creditimpairment losses|
||-7,617,071.36|-12,166,788.52|-37.39%||
|Asset impairment losses|||||
||1,587,949.57||100.00%|Mainly due to the changes of foreign exchange rate duringthe reporting period, which resulted in the changes in othernon-current financial assets fair value|
|Add: Gains on changes in fair value|||||
|Gains on disposal of assets|6,298,909.35|12,719,572.17|-50.48%|Mainly due to less disposal of assets in the reporting period|
|Non-operating expenses|12,184,310.83|6,374,674.57|91.14%|Mainly due to the increase on donation expenditures|
||-10,247,044.56|-3,853,695.47|-165.90%|Mainly due to that the Company’s subsidiary was still at aloss|
|Minority interests|||||
||7,424,903.36|-2,274,842.44|426.39%|Mainly due to the fluctuation in exchange rate in thereporting period|
|Other comprehensive income|||||
|Total comprehensive income attributable to|-10,247,044.56|-3,853,695.47|-165.90%|Mainly due to that the Company’s subsidiary was still at aloss|
|minority interests|||||
||From 1 January|From 1 January|||
|Item|2019 to 30|2018 to 30|Flux (%)|Notes|
||September 2019|September 2018|||
||922,017,459.40|418,462,966.54|120.33%|Mainly due to the increase on income, resulting in anincrease on cash inflows|
|Net cash flow from operating activities|||||

Joyoung Co., Ltd Abstract of Third Quarterly Report of 2019
||||||
|-|-|-|-|-|
|Net cash received from disposal of fixed|579,500.00|47,390,251.34|-98.78%|Mainly due to the government's compensation to the landand building on ground in Zhangqiu, Shandong during 1January 2018 to 30 September 2018|
|assets, intangible assets and other|||||
|long-term assets|||||
|Net cash received from disposal of||103,683,299.35|-100.00%|Mainly due to the disposal of Joyoung Suzhou companyduring 1 January 2018 to 30 September 2018|
|subsidiaries and other business units|||||
|Cash paid to acquire fixed assets,|35,473,059.50|128,722,563.33|-72.44%|Mainly due to the reduction of the purchasing of fixedassets in the reporting period|
|intangible assets and other long-term|||||
|assets|||||
||20,748,877.88|50,493,008.25|-58.91%|Mainly due to the reduction of investing activities in thereporting period|
|Cash paid to acquire investments|||||
|Cash paid relating to other investing|1,393,000,000.00|955,000,000.00|45.86%|Mainly due to the increase on financial products purchasesduring the reporting period|
|activities|||||
||-551,880,575.39|186,253,647.00|-396.31%|Mainly due to the increase on financial products purchasesduring the reporting period|
|Net cash flow from investing activities|||||
|||24,500,000.00|-100.00%|Mainly due to the acquisition 51% shareholders ofSharkNinja (China), resulting in an increase in minorityshareholder input during 1 January 2018 to 30 September2018|
|Cash received from capital contributions|||||
|Cash received relating to other financing|210,000,000.00|4,800,000.00|4275.00%|Mainly due to bills discounting this reporting period|
|activities|||||
|Cash paid relating to other financing|219,566,986.11|164,092,818.96|33.81%|Mainly due to the increase of security deposit paid for billpledge|
|activities|||||
|Effect of foreign exchange rate changes on|6,219,240.13|13,698,259.12|-54.60%|Mainly due to less exchange gains in the reporting period|
|cash and cash equivalents|||||
||30 September2019|1 January 2019|Flux (%)|Notes|
|Item|||||
||1,254,860,625.68|2,401,908,241.50|-47.76%|Mainly due to the honouring of notes receivable in thereporting period|
|Notes receivable|||||
|Accounts receivable|481,165,200.39|170,334,201.29|182.48%|Mainly due to the increase on income|
||95,056,320.75|50,140,039.04|89.58%|Mainly due to advance payments to suppliers to secure theprice of materials|
|Advances to suppliers|||||
||8,772,130.27|1,087,939.73|706.31%|Mainly due to the increase of financial products in thereporting period, resulting in the increase of interestreceivable|
|Including: interest receivable|||||
||721,819,911.36|212,098,049.34|240.32%|Mainly due to the increase of financial products in thereporting period|
|Other current assets|||||
|Available-for-sale financial assets||453,798,187.73|-100.00%|Mainly due to the change of accounting policy that equity|

Joyoung Co., Ltd Abstract of Third Quarterly Report of 2019
||||||
|-|-|-|-|-|
|Other equity instrument investments|250,667,645.89||100.00%|investments are included in “other equity instrumentinvestments” and “other non-current financial assets”|
|Other non-current financial assets|289,111,242.71||100.00%||
||15,062,768.93|9,525,015.95|58.14%|Mainly due to the increase of a small number ofconstruction projects in the reporting period|
|Construction in progress|||||
||51,231,924.10|98,823,262.64|-48.16%|Mainly due to paying the expenses recognized by the endof the last reporting period in the reporting period|
|Deferred tax assets|||||
||749,962,721.17|398,577,915.90|88.16%|Mainly due to the increase of notes payable issued throughthe Supply Chain Finance in the reporting period|
|Notes payable|||||
||272,182,091.82|539,246,286.69|-49.53%|Mainly due to the transfer from advances from customers topayments|
|Advances from customers|||||
||19,588,204.65|199,388,479.30|-90.18%|Mainly due to paying the yearly bonus recognized by theend of 2018 in the reporting period|
|Employee benefits payable|||||
|Taxes payable|57,892,277.64|139,042,561.43|-58.36%|Mainly due to tax payment in the reporting period|
|Other payables|478,960,492.21|186,129,378.79|157.33%|Mainly due to the recognition of the semi-annual dividends|
|Including: dividends payable|383,656,000.00||100.00%|Mainly due to the recognition of the semi-annual dividends|
||34,285.69||100.00%|Mainly due to the reclassification of patent royaltiesresulted from the finish of its amortization within one year|
|Other current liabilities|||||
||15,308,571.84|349,699.95|4277.63%|Mainly due to the changes of accounting policies during thereporting period, which resulted in the increase inFVTPL&FVOCI fair value as well as tax liabilities on futuredisposal|
|Deferred tax liabilities|||||
|||2,279,999.98|-100.00%|Mainly due to the reclassification of patent royalties intoother current liabilities resulted from the finish of itsamortization within one year|
|Other non-current liabilities|||||
||3,402,960.00|4,999,960.00|-31.94%|Because the company has exercised the circulation of itsincentive restricted stock in the reporting period|
|Less: treasury stock|||||
||24,734,354.69|-1,179,916.24|2196.28%|Mainly due to the changes of accounting policies during thereporting period, which resulted in the change in FVOCI fairvalue.|
|Other comprehensive income|||||
||9,321,593.20|19,568,637.77|-52.36%|Mainly due to that the Company’s subsidiary was still at aloss|
|Minority interests|||||

2. Analysis of the Progress of Important Matters and Their Impact and Solutions
The 20th meeting of the 4th Board of Directors held on August 13, 2019 and the 2nd Extraordinary Shareholders'
Meeting of 2019 held on September 11, 2019 reviewed and approved the Proposal on the Distribution of Profits of the
Semi-annual 2019. The Company intends to deduct the 59,000 repurchased and then cancelled shares from the Company's
Joyoung Co., Ltd Abstract of Third Quarterly Report of 2019 total share capital of 767,371,000 by the end of June 2019. That is, based on 767,312,000 shares, the Company intends to distribute cash dividends of 5 yuan (tax inclusive) per 10 shares to all shareholders with a total of RMB 383,656,000 yuan cash dividends, with no stock dividend and no capital reserves converted into share capital.
||||
|-|-|-|
|Overview of important matters|Date of disclosure|Website index for disclosed reports|
|2019 semi-annual distribution ofprofits|||
||15 August 2019|Please refer to Report No. 2019-054 on Cninfo website (http://www.cninfo.com.cn).|

The implementation of share-buyback
The Company's 14th meeting of the 4th Board of Directors held in October 2018 and the first Extraordinary Shareholders Meeting of 2018 held in November 2018 reviewed and approved the Preparation of Some Public Shares Buyback. The Company intended to use no less than RMB 40 million yuan and no more than (including) RMB 80 million yuan self-owned funds to buy back some of the Company's shares in centralized competitive biddings. The buy-back price will not exceed RMB 20 yuan/share (adjusted to RMB 18.70 yuan/share after the 2018 annual and the 2019 semi-annual distributions of profits). The share buyback time limit is no more than 12 months from its date of approval by the shareholder meeting. By the end of the reporting period, the Company had not bought back any shares.
The implementation of reducing buy-back shares through centralized competitive bidding
□ Applicable√ Not applicable
3. Commitments Made by the Actual Controller, Shareholders, Related Parties, Purchasers and Other Relevant Parties That Have not been Fulfilled the Correspondent Promise Within the Reporting Period□ Applicable√ Not applicable
4. Financial Assets Measured at Fair Value
Unit: RMB yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Amount|||Amount by the||
|Classes|||Accumulated changes in||Amount disposed|Accumulated|||
||Initial Capital|Gains on changes in||purchased in|||end of the|Source of|
|of|||fair value recognized in||in the reporting|investment|||
||Investment|fair value||the reporting|||reporting|fund|
|assets|||equity||period|income|||
|||||period|||period||
|||||||||Self-owned|
|Funds|232,420,187.73|1,587,949.57|61,506,044.80|0.00|-7,741,551.59|90,391,983.01|289,111,242.71||
|||||||||capital|
|||||||||Self-owned|
|Others|221,378,000.00|6,038,296.19|29,289,645.89||||250,667,645.89||
|||||||||capital|
|Total|453,798,187.73|7,626,245.76|90,795,690.69|0.00|-7,741,551.59|90,391,983.01|539,778,888.60|--|

Joyoung Co., Ltd Abstract of Third Quarterly Report of 2019 5. Illegal external guarantee
□ Applicable√ Not applicable
6. The Non-operating Funds Occupation of the Controlling Shareholders and Its Related Parties□ Applicable√ Not applicable
7. Trust Investment
Unit: 10,000 RMB yuan
||||||
|-|-|-|-|-|
||Source of fund for trust|Amount of recorded trust|||
|Type|||Premature balance|Overdue balance|
||investment|investment|||
|Bank financial products|Self-owned capital|87,300|35,074.76|0|
|Trust financial products|Self-owned capital|52,000|32,000|0|
|Total||139,300|67,074.76|0|

 The specific situation of high-risk, low security, poor liquidity or non-guarantee trust investment of significant amount
□ Applicable√ Not applicable
Trust investment is expected to be unable to recover the principal or other circumstances that may result in impairment
□ Applicable√ Not applicable
8. Registration Forms for Research, Communication and Interviews During the Reporting Period.
|||||
|-|-|-|-|
|||Reception object||
|Date|Reception method||Basic information index|
|||type||
|02 July 2019|On site|Institution|Please refer to the company’s activity record for investor relationships on 2 and|
|05 July 2019|On site|Institution|5 July 2019 on Cninfo website.|
|15 August 2019|Call|Institution|Please refer to the company’s activity record for investor relationships(cid:13)|
|16 August 2019|On site|Institution|on 15 and 16 August 2019 on Cninfo website.|
||||Please refer to the company’s activity record for investor relationships(cid:13)|
|16 September 2019|On site|Institution||
||||on 16 September 2019 on Cninfo website.|
||||Please refer to the company’s activity record for investor relationships(cid:13)|
|18 September 2019|On site|Institution||
||||on 18 September 2019 on Cninfo website.|