Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Important Notes
I. The Board of Directors, Board of Supervisors, directors, supervisors and senior management
of the Company warrant that the content of the Semi-Annual Report is authentic, accurate and
complete, free from false records, misleading statements and major omissions, and shall be jointly
and severally liable therefore.
II. All directors of the Company attended the meeting of the Board of Directors.
III. The Semi-Annual Report has not been audited.
IV. HOU Juncheng, chairman of the Company, and HOU Yameng, CFO, and Ma Nan, person in
charge of Accounting Department (and Head of the Accounting Department) of the Company
represent and warrant that the financial report in the Semi-Annual Report is authentic, accurate
and complete.
V. The profit distribution plan or the plan for capitalization of capital reserves for the Reporting
Period approved by the Board of Directors
The Company proposes to distribute a cash dividend of RMB8.00 (tax inclusive) for every 10 shares to all
registered shareholders based on the total share capital (excluding the shares held in the Company’s special
securities account for repurchase) as of the equity registration date for the implementation of the profit
distribution. Based on the total share capital of 396,247,646 shares as of June 30, 2025, and after deducting
cash dividend to be distributed will be RMB315,229,456.80 (tax inclusive). No capitalization of the capital
reserve into share capital and no bonus shares will be implemented. Prior to the equity registration date
for the implementation of the profit distribution, if the Company’s total share capital changes due to the
conversion of convertible bonds or other reasons, the distribution ratio per share will remain unchanged,
and the total distribution amount will be adjusted accordingly.
VI. Disclosure of risks involved in forward-looking statements
"√ Applicable" "□ Not applicable"
The Report contains forward-looking statements which involve the future plans, development strategies,
etc. of the Company, yet do not constitute substantive undertakings of the Company to investors. Investors
should exercise caution prior to making investment decisions.
VII. Whether there is any non-operating capital occupation by a controlling shareholder and other
related parties
No
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
VIII. Whether there is any external guarantee provided in violation of specified decision-making
procedures
No
IX. Whether the majority of the directors are unable to warrant the authenticity, accuracy and
completeness of the Semi-Annual Report disclosed by the Company
No
X. Disclosure of major risks
The Company has disclosed the existing risks in details in this Report. Refer to “(I) Possible risks”, “V.
Other Disclosures”, “Section III Management Discussion and Analysis”.
XI. Others
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
CONTENTS
List of Financial statements signed and sealed by the Legal Representative, CFO, and person in
Documents charge of Accounting Department of the Company
Available
Original copies of all documents and announcements of the Company disclosed during the
for
Reporting Period in newspapers designated by China Securities Regulatory Commission
Inspection
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Section I Definitions
In this Report, unless the context otherwise requires, the following terms have the following meanings:
Definition
Proya Cosmetics, this Company, or the
refers to Proya Cosmetics Co., Ltd.
Company
CSRC refers to China Securities Regulatory Commission
SSE refers to Shanghai Stock Exchange
Articles of Association of Proya Cosmetics
Articles of Association refers to
Co., Ltd.
RMB/RMB '0,000 refers to RMB/RMB '0,000
Section II Company Profile and Key Financial Indicators
I. Company Information
Chinese name of the Company 珀莱雅化妆品股份有限公司
Abbreviation of the Chinese name 珀莱雅
English name of the Company Proya Cosmetics Co., Ltd.
Abbreviation of the English name Proya
Legal representative of the Company HOU Juncheng
II. Contact Details
Board Secretary Securities Affairs Representative
Name HOU Juncheng WANG Xiaoyan
Xixi Road, Xihu District, Xixi Road, Xihu District,
Mailing address
Hangzhou City, Zhejiang Hangzhou City, Zhejiang
Province Province
Telephone 0571-87352850 0571-87352850
Fax 0571-87352813 0571-87352813
Email proyazq@proya.com proyazq@proya.com
III. Changes in General Information
No. 588 Xixi Road, Liuxia Neighborhood, Xihu District,
Registered address
Hangzhou City, Zhejiang Province
For details, please refer to the Announcement on Revision of the
Historical changes in the Company's Articles of Association and Change in Business Registration
registered address (Announcement No. 2019-008) disclosed by the Company in the
designated information disclosure media on February 27, 2019
Proya Building, No. 588 Xixi Road, Xihu District, Hangzhou City,
Office address of the Company
Zhejiang Province
Postal code of the registered office
address
Company website http://www.proya-group.com
Email proyazq@proya.com
Index changes during the Reporting
Not applicable
Period
IV. Changes in Information Disclosure and Places for Inspection
Name of designated newspapers for Shanghai Securities News, Securities Times, China Securities
information disclosure by the Journal, Securities Daily, Economic Information Daily, China
Company Daily
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Website for the publication of the
http://www.sse.com.cn
Semi-Annual Report
Place for inspection of the Semi- Board of Director's Office, Proya Building, No.588 Xixi Road,
Annual Report of the Company Xihu District, Hangzhou City, Zhejiang Province
Index changes during the Reporting
Not applicable
Period
V. Stock Overview
Stock abbreviation
Stock class Stock exchange Stock abbreviation Stock code
before changes
Shanghai Stock
A share Proya 603605 None
Exchange
VI. Other Relevant Information
"□ Applicable" "√Not applicable"
VII. Key Accounting Data and Financial Indicators of the Company
(I) Key accounting data
Unit: Yuan Currency: RMB
In the Reporting
Same period of Year-on-year
Key accounting data Period
prior year change (%)
(January - June)
Operating revenue 5,361,890,476.66 5,001,465,470.72 7.21
Total profit 998,497,421.08 896,068,694.72 11.43
Net profit attributable to shareholders of
the listed company
Net profit attributable to shareholders of
the listed company net of non-recurring 770,601,133.28 678,996,518.33 13.49
gains and losses
Net cash flows from operating activities 1,293,329,341.66 662,102,794.39 95.34
Change from the
end of the
End of the previous year to
End of prior year
Reporting Period the end of the
Reporting Period
(%)
Net assets attributable to shareholders of
the listed company
Total assets 8,282,681,109.99 7,530,182,694.00 9.99
(II) Key financial indicators
In the Reporting
Same period of Year-on-year
Key financial indicators Period
prior year change (%)
(January - June)
Basic earnings per share (RMB/share) 2.02 1.78 13.48
Diluted earnings per share (RMB/share) 2.02 1.72 17.44
Basic earnings per share net of non-
recurring gains and losses (RMB/share)
Down by 0.99
Weighted average ROE (%) 14.35 15.34
percentage points
Weighted average ROE net of non- Down by 1.00
recurring gains and losses (%) percentage points
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Notes to key accounting data and financial indicators
"□ Applicable" "√Not applicable"
VIII. Differences in Accounting Data under Chinese and International Accounting Standards
"□ Applicable" "√Not applicable"
IX. Items and Amounts of Non-recurring Gains and Losses
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Non-recurring gains and losses item Amount Notes (if applicable)
Gains or losses arising from disposal of non-
current assets, including write-offs of provision -346,504.18
for asset impairment actually 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 national 50,677,310.00
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 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
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
cancellation and modification of equity incentive
plans
Gains or losses arising from changes in the fair
value of employee compensation 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
-683,056.90
besides the above items
Other gains and losses items that conform to the
definition of non-recurring gains and losses
Less: Effect of income tax 12,529,617.88
Impact of minority interests (after tax) 9,207,932.25
Total 27,910,198.79
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"
X. Companies with equity incentive plans or employee stock ownership plans may elect to disclose
net profit after detecting the impact of share-based payments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
In the Reporting
Same period of Year-on-year
Key accounting data Period
prior year change (%)
(January - June)
Net profit after detecting the impact of
share-based payments
XI. Others
"□ Applicable" "√Not applicable"
Section III Management Discussion and Analysis
I. Description of the Industry in Which the Company Operates and Primary Businesses of the
Company during the Reporting Period
(I) Primary businesses
The Company seeks to build a new domestic cosmetics industry platform, and is primarily engaged
in R&D, production and sales of cosmetic products. Main brands owned by the Company include PROYA,
TIMAGE, Off&Relax, HAPSODE, CORRECTORS, INSBAHA, Awaken Seeds, UZERO and Anya. The
Company's own brands have covered fields such as popular exquisite skincare, make-up, body & hair, and
high-efficiency skincare:
(1) PROYA, focusing on technology skincare, designed for young white-collar female customers,
generally priced at RMB200 to RMB500, sold both online and offline.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(2) HAPSODE, positioned as an “Efficacy-oriented skincare for young skin”, focusing on Generation
Z consumers aged 18–24, generally priced at RMB50 to RMB200, sold mainly online.
TIMAGE, positioned as a professional make-up artist brand rooted in the concept of “Chinese
Makeup, Natural Beauty”, generally priced at RMB150 to RMB300, sold mainly online.
INSBAHA, positioned as an emerging make-up brand built around the core concept of “self”,
focusing on Generation Z consumers, generally priced at RMB40 to RMB130, sold mainly online.
Off&Relax, positioned as an “Expert in Asian Scalp Health & Care”, generally priced at RMB150 to
RMB200, sold mainly online.
CORRECTORS, positioned as a “laboratory” professional skincare brand, generally priced at
RMB260 to RMB600, sold online.
(II) Business models
Mainly online sales, supplemented by offline sales.
Online sales are mainly operated through direct sales and distribution. Direct sales are mainly carried
out through platforms such as Tmall, Douyin, JD, Kwai, and Pinduoduo, and distribution is based on
platforms such as Taobao, JD, and Vipshop.
Offline sales are mainly operated through dealers, covering cosmetics franchise stores, department
stores, and emerging mall-based multi-brand retailers.
Self-production is the main production model of the Company, supplemented by OEM production.
The skincare products of the Company are mainly self-produced while make-up products adopt both self-
production and OEM production. The Company has self-built skincare and make-up factories.
Self-developed R&D is the main form of R&D of the Company, supplemented by industry-
university-research cooperation. The Company maintains R&D cooperation with front-end research
institutions and high-quality raw material suppliers including Zhejiang University, Shanghai Jiao Tong
University, Beijing Technology and Business University, BASF China, Ashland China, DSM Shanghai,
Croda China, Evonik China, LIPOTRUE,S.L. (Spain), Bota Bio, Shenzhen SiyoMicro, Zhejiang Peptide,
Jiangsu Trautec, and Shanghai World Leader.
Description of the Company’s significant non-primary businesses added during the Reporting Period
"□ Applicable" "√Not applicable"
II. Business Discussion and Analysis
Operating revenue amounted to RMB5.362 billion, up by 7.21% YOY
Including: primary operating revenue was RMB5.356 billion, up by 7.24% YOY
Other operating revenue was RMB6 million
Primary operating revenue:
(1) By channel
Change
Change Change Change
Amount in H1 Proportion Proportion
in 2024 in 2023 in 2022 Proportion Proportion
By channel (RMB100 2025 of H1 of 2022
YOY YOY YOY of 2024 (%) of 2023 (%)
million) YOY 2025 (%) (%)
(%) (%) (%)
(%)
Direct sales 39.05 4.87 20.35 50.70 59.79 72.90 75.45 75.91 70.40
Online Distribution 12.04 25.91 38.40 16.49 16.79 22.49 19.61 17.16 20.58
Subtotal 51.09 9.17 23.68 42.96 47.50 95.39 95.06 93.07 90.98
Cosmetics
stores
Offline Others 0.77 -16.50 37.66 -6.98 -32.32 1.43 1.56 1.37 2.06
Subtotal 2.47 -21.49 -13.63 7.35 -17.62 4.61 4.94 6.93 9.02
Total 53.56 7.24 21.09 39.74 37.69 100.00 100.00 100.00 100.00
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Note: The proportion of sales revenue from each channel is as the percentage of primary operating
revenue.
(2) By brand
Change
Change Change Change
Amount in H1 Proportion Proportion Proportion Proportion
in 2024 in 2023 in 2022
Category (RMB100 2025 of H1 of 2024 of 2023 of 2022
YOY YOY YOY
million) YOY 2025 (%) (%) (%) (%)
(%) (%) (%)
(%)
PROYA 39.79 -0.08 19.55 36.36 37.46 74.27 79.69 80.73 82.74
TIMAGE 7.05 21.11 19.04 75.06 132.04 13.17 11.07 11.26 8.99
Off&Relax 2.79 102.52 71.14 71.17 509.93 5.22 3.42 2.42 1.98
HAPSODE 1.66 3.31 9.41 61.82 188.27 3.11 3.08 3.41 2.94
INSBAHA 0.97 80.18 138.36 - - 1.81 1.06 - -
Other
brands
Total 53.56 7.24 21.09 40.86 40.74 100.00 100.00 100.00 99.22
Note: The proportion of sales revenue from each brand is as the percentage of primary operating revenue.
The revenue from INSBAHA was incorporated into that of other brands for 2023 and prior years, but has
been shown separately since 2024. In 2022, the combined share of all brands accounted for 99.22%,
primarily because the 0.78% share of cross-border agency brands was not included.
(3) By category
Change
Change Change Change
Amount in H1 Proportion Proportion Proportion Proportion
in 2024 in 2023 in 2022
Category (RMB100 2025 of H1 of 2024 of 2023 of 2022
YOY YOY YOY
million) YOY 2025 (%) (%) (%) (%)
(%) (%) (%)
(%)
Skincare
(including 41.99 0.20 19.31 37.85 38.56 78.40 83.78 85.03 86.20
cleansing)
Make-up 8.37 25.79 21.96 48.28 21.70 15.63 12.64 12.55 11.82
Body &
hair
Total 53.56 7.24 21.09 39.74 37.69 100.00 100.00 100.00 100.00
Net profit attributable to shareholders of the listed company amounted to RMB799 million, up by
Net profit attributable to shareholders of the listed company net of non-recurring gains and losses
amounted to RMB771 million, up by 13.49% YOY
Indicator H1 2025 2024 2023 2022 Notes
Mainly due to an increase
in gross profit margin.
Mainly due to cost
reduction and efficiency
improvement initiatives,
and decrease in operating
costs during the current
period
Mainly due to the increased
promotion expenses.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Including: Image
promotion expense 44.05% 42.70% 39.69% 37.90%
ratio
administrative expense 3.31% 3.39% 5.11% 5.13%
ratio
Mainly due to a decrease in
turnover rate (times)
accounts receivable.
turnover days (days)
rate (times)
days (days)
Material changes in business operations of the Company during the Reporting Period and matters
that occurred during the Reporting Period that had and are expected to have significant impacts on
business operations of the Company
"□ Applicable" "√Not applicable"
III. Analysis of Core Competitiveness during the Reporting Period
"√ Applicable" "□ Not applicable"
The Company’s core competitive advantages are primarily reflected in the following aspects:
Facing the rapidly changing external market, the Company was firmly committed to the leadership
and implementation of the 6*N Strategy. We consolidated and deepened precise operation management
system highlighting “R&D, products, contents, and operation”, supplemented by a self-driven
organization structure featuring “culture-strategy-mechanism-talents”. We flexibly responded to market
development and changes, rapidly established our presence and invested in emerging channels. Meanwhile,
we explored overseas development opportunities, seized the chance for Chinese brands to expand globally,
and drove business growth with an expanded market scope and enhanced responsiveness.
With a keen insight into consumers' needs, the Company continued to sharpen the strengths of hero
products, build and improve the matrix of core hero products, as well as expand brand appeal and vitality,
based on our strong competence in R&D and backed by our quick-response internal organizational
capabilities. A self-driven agile organization was built to serve the second-tier brands and the brands at
the incubation stage, forming a fledgling brand matrix in skincare, make-up, and personal care products.
By building our own MCN team and content marketing team, we strengthened the internal circular ecology
and served PROYA to realize external ecologization.
IV. Main Operations during the Reporting Period
(I) PROYA
During the Reporting Period, PROYA’s product development remained closely aligned with its core
strategy of “deeply aligning with consumer needs”. Under its positioning of “Scientific skincare”, the
brand continued to innovate by focusing on four key directions: Composite and evolving consumer
demands; high-growth segments; integration with medical aesthetics trends; and breakthroughs in
skincare-infused base make-up. These initiatives have collectively driven continuous upgrades to the
product matrix.
(1) High-efficacy, multi-functional products addressing composite consumer needs:
The Double Effect Brightening Series, a category leader in early-stage anti-aging, addresses the
increasing demand for whitening by targeting dullness, uneven skin tone, and early fatigue signs in mildly
mature skin, and primarily promotes the “anti-early aging + whitening”. In April, the whitening special
certificate version of the Double Effect Brightening Series was launched, including essence, lotion,
emulsion and cream.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
In response to consumers’ heightened needs for high-protection SPF and post-sun repair, the Sun-
screening Series mainly promoted the “Watery Brightening Sunscreen Essence”, which focuses on “sun
protection + repair”. Powered by “Dot Matrix Light Strike Membrane Technology”, it provides high-level
sun protection, while incorporating multiple natural ingredients to relieve redness after sun exposure.
The "Inaugurating Nourishing" Series targets the “whitening and anti-aging needs of mature skin”.
Based on mitochondrial research, a new whitening target for activating mitochondria was discovered. In
April, the whitening special certificate version of “Inaugurating Luminous Anti-Spot Whitening Series”
was launched, offering a one-stop solution to “aging-induced pigmentation” in mature skin.
(2) The high-tech solutions of expanding the high-growth demands:
Based on the rapid growth of the whitening segment in recent years, PROYA developed a structured
product strategy tailored to three different skin types: For young skin (aged 18–29), the brand mainly
promoted the Double Effect Brightening Series, focusing on radiance and brightening; for early-mature
skin (aged 18–35), the brand emphasized intensive whitening, and mainly promoted the Illuminating Skin-
Purifying Series, addressing issues such as limited spot-fading efficacy, frequent pigmentation rebound,
and skin irritation; and for mature skin (aged 30–40), the brand focused on energized whitening, and
mainly promoted the newly launched Inaugurating Luminous Anti-Spot Whitening Series, addressing
issues such as limited spot-fading efficacy, frequent pigmentation rebound, and skin irritation .
(3) Alignment with the rapid growth of medical aesthetics trends:
The Advanced Original Repair Series responded swiftly to evolving consumer needs. In April, the
brand launched the Advanced Original Repair Special Care Single Use Essence and medical-grade sheet
mask, focusing on daily skin emergency care and post-procedure recovery in the context of medical
aesthetics.
(4) A new chapter in skincare-infused base make-up:
Amid rapid growth in the skincare-infused base make-up category, PROYA launched the “Long-
Wear Night Cushion” during the “3.8” shopping festival, targeting skin concerns such as enlarged pores
and excess oil. The product quickly rose to No.1 on Tmall’s New Product Chart during the campaign. In
June, the brand introduced the “Dual-Shade Night Compact Powder”, designed to address issues such as
dryness, caking, and mask-like finishes after setting makeup, leaving the skin visibly refreshed and
revitalized.
During the Reporting Period, PROYA continued to center its brand marketing around the dual themes
of “Youthful feeling” and “Science-based power”, upholding the spirit of “Discovery” by focusing on real
individuals and the multifaceted causes of specific skin concerns. Key brand and product marketing
initiatives included:
(1) In January, to kick off the year, the brand launched the Chinese New Year campaign “Elevate
Your Luck”, further enhancing awareness and favorability of the Advanced Firming Nourishing Series.
Online, PROYA collaborated with Beigaofeng to release the “Snake Turns to Fortune” New Year co-
branded gift box; offline, it invited consumers to participate in a symbolic New Year hike, and hosted a
“Good Fortune” drone show at the Hangzhou City Balcony, aiming to bring blessings to consumers. The
campaign achieved over 360 million topic impressions and 2.2 million engagements.
(2) In February, the brand mainly promoted the “Watery Brightening Sunscreen Essence” under the
positioning “Patented Protection Film, Lightweight and Makeup-Friendly.” In the meantime, PROYA
officially announced LIU Yifei as its Global Ambassador for Sunscreen Products. The main hashtag on
Weibo reached over 100 million reads and 460,000 engagements, dominating Weibo’s trending,
entertainment, and Sina hot topic charts.
(3) In March, for International Women’s Day, PROYA continued to speak out for the “It's Gender,
Not Border” theme, releasing the brand’s short film When She Starts to Push Boundaries to express its
ongoing commitment to women’s issues. It also partnered with Xiaohongshu for a special live-streaming
dialogue campaign titled She Lives, Her Live. Related campaign content garnered over 350 million
impressions and 2.3 million engagements across all platforms.
(4) In April, PROYA launched the whitening special certificate version of Double Effect Brightening
Essence further elevating the product’s science-based power. Meanwhile, the brand collaborated with its
Global Brand Endorser Jackson Yee to release a new TVC short film and initiated a cross-platform
engagement campaign under the theme “Show Off Your Radiant Side”, driving deep interaction with fans
and the broad whitening and early-stage anti-aging groups. The campaign achieved over 2.8 billion
impressions across online and offline channels and over 5 million engagements, effectively boosting brand
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
awareness.
In April, PROYA announced MA Boquan as its Youth Ambassador to co-interpret the brand’s
youthful attitude of “Vibrant Inside and Out, Fearless in Challenge”. On April 30, MA Boquan appeared
in PROYA’s official Douyin live-streaming studio, engaging in in-depth dialogue with consumers and
further connecting the brand with younger audiences. The announcement garnered over 130 million
impressions across platforms.
(5) In May, the brand rolled out a Mother’s Day campaign under the theme “A Thoughtful Gift for
Mom”, giving the Advanced Firming Nourishing Series an emotional positioning – the most suitable gift
for mothers, thus reinforcing PROYA’s brand association with heartfelt gifting. On Xiaohongshu, the
brand launched the “Creative Ways to Pamper Mom” discussion, embedding its “Surprise Flower Box”
concept into offline bouquet giveaways and sampling activities through the platform’s interactive tools,
generating over 170 million impressions.
In May, the Sun Around Shielding Sunscreen further integrated with outdoor scenarios, including a
co-branded campaign with the West Lake Half Marathon titled “Outrun the Sun, Shield the Course”,
highlighting product’s strengths of “friction resistance and sweat-proof performance”. Nearly 10,000
participants joined the trial campaign.
In May, PROYA sponsored the first episode of the Under the Sky concert series held in Dunhuang,
inviting numerous celebrities and Douyin musicians, reaching beyond to Douyin’s music festival audience
segments. The program achieved over 750 million total impressions and was viewed by more than 54
million people. Simultaneously, PROYA’s official Douyin live-streaming studio featured a “Dunhuang”
themed session, combining cultural tourism, music, and celebrity appeal to convert content heat into brand
traffic.
Online:
(1) Tmall
During the Reporting Period, PROYA innovated its product matrix and optimized its product strategy.
New products such as sunscreens and the Double Effect Brightening Essence boosted sales through a
combination of “platform IP and celebrity collaborations”. The brand further enhanced its presence during
key gifting occasions such as Chinese New Year, Valentine’s Day, and Mother’s Day, reinforcing core
product gifting awareness and attracting gifting-oriented consumers. AI tools were deeply integrated to
drive incremental growth across people, goods, and place, seize high-value traffic, and support cost
reduction and efficiency improvement. Driven by the points-based ecosystem, PROYA focused on high-
potential categories and full-touch point penetration to increase member point redemption and boost
member spending.
During the “618” shopping festival in 2025, the GMV of PROYA’s Tmall flagship store ranked No.
Tmall Beauty.
(2) Douyin
During the Reporting Period, in response to adjustments in platform strategy, PROYA further
streamlined and optimized its merchandise assortment. Centered around content, it leveraged both self-
operated and KOL live-streaming to drive sales growth and adopted a conversion-oriented approach to
deepen refined operations.
In terms of self-operated live-streaming, sales growth was driven by a differentiated content matrix,
for example, celebrity appearances by DONG Sicheng and MA Boquan in PROYA’s official Douyin live-
streaming studio encouraged active fan engagement. The brand also capitalized on thematic live-streaming
scenarios such as cultural tourism, holidays, and trending topics (e.g., “cloud tour” of Harbin and the
Dunhuang-themed concert live-streaming of Under the Sky) to capture consumer interest and convert it
through engaging content. For KOL live-streaming, the brand optimized the KOL live-streaming structure,
and collaborated with more mid-to-upper-tier KOLs. Content was used to drive traffic, for instance, the
“Xishuangbanna Sun Protection and Whitening Season” campaign, which resulted in reduced conversion
costs for KOL live-streaming.
During the “618” shopping festival in 2025, the GMV of PROYA ranked No.2 on Douyin Beauty.
In the first half of 2025, the GMV of PROYA ranked No.2 on Douyin Beauty.
(3) JD
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
During the Reporting Period, PROYA focused on audience targeting, product stratification, and
cross-scenario operational synergy. In terms of audience strategy, the brand continuously refined user
behavior tags to enhance precision marketing both on and off the platform., which was complemented by
effective promotional mechanisms to unlock user value. On the product strategy, the brand adhered to a
series-based branding operation, continued to cultivate core categories, explored potential opportunity
categories, and consistently developed hero products. Regarding scenario strategy, the brand leveraged
JD’s core marketing IPs to drive multiple rounds of sales peaks. At the same time, a cost-reduction and
efficiency-enhancement strategy was implemented to improve platform productivity.
During the “618” shopping festival in 2025, the GMV of PROYA ranked No.5 on JD Beauty, and
No.1 among domestic beauty products. In the first half of 2025, the GMV of PROYA ranked No.5 on JD
Beauty, and No.1 among domestic beauty products.
Offline:
(1) Department store channel
During the Reporting Period, PROYA actively and steadily expanded its high-quality department
store channel network, continuously optimized store layout and structure, and upgraded its terminal brand
image. At the same time, the brand focused on a high-end product line strategy, with the newly launched
the “Inaugurating Luminous Anti-Spot Whitening Series”, which received positive market feedback. This
further reinforced PROYA’s high-end brand positioning and strengthened its promotional foothold within
the department store channel.
(2) Cosmetics store channel
During the Reporting Period, PROYA continued to leverage its brand momentum to solidify its core
market share. The brand deepened strategic cooperation with emerging mall-based multi-brand retailers,
tapping into new growth drivers within emerging channels. Simultaneously, it maintained strong strategic
partnerships with key clients in traditional channels, safeguarding its sustained brand influence and
ensuring the coordinated and steady development of all channels.
(II) TIMAGE
During the Reporting Period, TIMAGE continued to strengthen its brand positioning as a
“Professional make-up artist”, adhering to a product development philosophy of “Simplifying Complexity,
Perfecting Harmony Between Makeup and People”. The brand’s category structure was gradually
optimized, with sustained expansion in the base make-up segment.
Leveraging the expertise of its team of celebrity make-up artists, TIMAGE launched a series of new
products that are user-friendly, multi-functional, and deliver outstanding make-up effects. New launches
included updated shades of the “Dual-colored Highlighter Palette”, the “Soft Gauze Matte Lasting
Foundation and Correcting Concealer”, the “TIMAGE Cloud Radiant Cushion Foundation and Concealer”,
and the “TIMAGE Vigorous and Flowing Jade Multi-Functional Color Palette Duo”, reinforcing its
portfolio of hero products. These products were infused with professional techniques to empower
consumers in achieving high-quality make-up looks.
In the first half of 2025, TIMAGE Lasting Foundation and Correcting Concealer series ranked No. 2
in the foundation category on Tmall and No. 1 among domestic foundation products. Its primer ranked
No. 2 in the primer category on Tmall and No. 1 among domestic primer products. The TIMAGE contour
palettes (including both Tri-colored Contour Palette and Single-colored Contour Palette) ranked No. 1 in
the contour category on Tmall, and the Tri-colored Contour Palette ranked No. 2 in the concealer category
on Tmall.
During the Reporting Period, TIMAGE remained committed to the core concept of “Chinese Makeup,
Natural beauty”, deeply cultivated the essence of Chinese aesthetics, and carried out brand and category
marketing:
(1) In January, TIMAGE launched the Limited-edition “Snake of Fortune” Series for New Year
to pay homage to traditional Chinese festivals. Building on the brand’s principles of “Simplifying
Complexity” and the aesthetics of “Eastern minimalism”, the series incorporated the symbolic spirit
snake motif, integrating it with TIMAGE’s signature jade green to create a graceful interpretation of
Chinese-style make-up.
(2) In March, TIMAGE partnered with the “2025 Taiziwan Park Tulip Festival” to create a spring-
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
themed pop-up space, offering consumers an immersive brand experience and hands-on product trials.
Professional instructors from TIMAGE Beauty Academy were specially invited to provide on-site
consultations and personalized make-up services. Brand founder TANG Yi and popular beauty KOL
Wangwang made surprise appearances, engaging directly with consumers.
(3) In April, TIMAGE launched the “TIMAGE Cloud Radiant Cushion Foundation and
Concealer”, addressing the dual needs of high coverage and a lightweight finish. Online, the brand
collaborated with Shangchengshi, a Chinese cultural aesthetics magazine, to release new branded
creative materials. Offline, a product launch event was held on the shores of West Lake in Hangzhou,
attended by Founder of TIMAGE TANG Yi, and brand ambassador CHEN Duling. TANG Yi,
together with a team of professional make-up artists, drew inspiration from 10 iconic scenic spots
around West Lake to unveil the brand’s first New Chinese Style Make-up Runway Show. The event
was livestreamed in full across all official TIMAGE platforms (including Douyin, Tmall, WeChat,
Xiaohongshu, and JD), amplifying overall brand awareness and driving sales performance.
In April, the brand launched the Soft Gauze Matte Lasting Foundation and Correcting Concealer.
The blockbuster series continued to expand the brand’s new-customer base, while optimizing its
advertising placement structure and efficiency. Cross-platform and multi-scenario marketing, both
online and offline, enhanced the exposure-search-conversion funnel. The foundation consistently
ranked No. 1 on Xiaohongshu’s foundation search ranking list in Q2.
(4) In May, TIMAGE collaborated with Molly Tea to launch the co-branded campaign “Meet the
Mountains, Embrace Lightness”, inspired by the summer theme of “In Lightness, Return to the
Mountains”. The campaign blended make-up aesthetics with the refreshing charm of tea culture,
illustrating the fluid harmony between light daily make-up and natural landscapes. Online, a limited-
edition mini product series was released and integrated with e-commerce sales; offline, co-branded
thematic displays and sampling events were rolled out across over 1,500 Molly Tea stores nationwide,
precisely targeting HNW consumer groups and extending the brand’s influence beyond its traditional
audience.
(1) Tmall
During the Reporting Period, TIMAGE further expanded its market share in the base make-up
segment while leveraging its strength in facial make-up categories. With distinctive advantages in
techniques, make-up tutorials, and artistry, the brand achieved a favorable market share and category
rankings across multiple Tmall subcategories. On the brand operations front, TIMAGE adopted a balanced
media placement strategy, implementing an integrated approach that combined external traffic seeding
and customer acquisition, internal content enhancement, and the synergy of product shelf and live-
streaming operations. This full-funnel content strategy effectively boosted both GMV and conversion
efficiency. On the audience front, TIMAGE continued to build around its core base of loyal consumers
while deepening penetration among emerging white-collar consumers and high-spending consumers in
Tier-2 cities, thereby increasing category user reach and overall coverage.
During the “618” shopping festival in 2025, the GMV of TIMAGE’s Tmall flagship store ranked
No.2 in the Make-up category on Tmall, and No.1 among domestic make-up products. In the first half of
No.1 among domestic make-up products.
(2) Douyin
During the Reporting Period, TIMAGE aligned its strategy with Douyin’s category distribution and
platform mechanisms, leveraging KOL-driven marketing as the core growth engine while positioning self-
operated live-streaming to capture off-platform traffic and brand search demand. In KOL live-streaming,
the brand optimized its KOL matrix and ecosystem, increasing the proportion of KOL live-streaming. On
the self-operated live-streaming, the brand focused on building momentum for breakthroughs, enhancing
consumer repurchase rates and improving the retention potential of loyal consumers. On the product front,
the newly launched TIMAGE Cloud Radiant Cushion Foundation and Concealer achieved strong market
traction, breaking through category boundaries through a combined strategy of “celebrity launch events +
celebrity live-streaming appearances + targeted seeding”. This resulted in a sales conversion rate
significantly higher than the industry average for new products.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
During the “618” shopping festival in 2025, GMV of TIMAGE ranked No.8 in the Make-up category
on Douyin, and No.5 among domestic make-up products.
(III) Off&Relax
During the Reporting Period, Off&Relax continued to strengthen its positioning as the “Expert in
Asian Scalp Health & Care” by expanding a multi-dimensional product launch matrix (including the
Advanced Anti-dandruff Series, seasonal limited-edition fragrance series, hero product size extensions,
professional anti-hair loss tools, and customized products for overseas markets). These efforts enhanced
its brand image of professionalism and deepened its penetration in both domestic and international markets.
At the same time, the brand gradually built the aroma healing image around its “seasonal limited-edition
fragrance body & hair series”, reinforcing its differentiated edge.
(1) In February, Off&Relax launched the Advanced Anti-Dandruff Series (shampoo + scalp essence),
introducing the innovative concept of “Scalp-specific cleansing & nourishing dual action”. Meanwhile,
the products featured Poly-AD, a globally debuting patented anti-dandruff ingredient that gently removes
dandruff by regulating microbial membrane autophagy, alongside skincare-grade ingredients such as
bisabolol to restore the scalp barrier. The products precisely address seasonal dandruff and itchiness
concerns across different scalp types, expanding the advanced scalp care portfolio and improving
comprehensive scenario-based coverage.
(2) In March, Off&Relax released the Fluffy Series & Silky Night Repair Series, covering hair mists
and hair essences in overseas markets. Differentiated offerings were launched for the Japanese and
Malaysian markets to meet local consumer needs, deepen the brand’s image of the “Expert in Asian Scalp
Health & Care” and advance its global expansion strategy.
(3) In April, Off&Relax launched a Spring Blossom Limited Edition Haircare and Hair Oil Set. Co-
developed with Givaudan, the brand launched a new Spring Blossom Limited Edition Haircare and Hair
Oil Set. The classic volumizing formula gently purified the scalp, while the scented hair oil softened and
volumized the hair, evoking a lively seasonal mood. Meanwhile, the fragrance product featured a patented
triple Scentz therapy complex designed to soothe both the body and emotions, helping to solidify the
brand’s aroma healing image in the body & hair category.
(4) In April, in conjunction with the Douyin channel, Off&Relax released a Light-Therapy Scalp
Massaging & Liquid Applicator Brush. This upgraded, high-value device builds upon the original liquid
applicator brush by increasing the number of comb teeth and incorporating red/blue light therapy and EMS
microcurrent technology, enhancing the user experience and boosting its functionality in supporting anti-
hair loss care. Paired with the Medicated Hair Tonic, the product raised the average transaction value and
reinforced the brand’s professional image in hair growth.
(5) In May, Off&Relax launched new size extensions for its Fluffy Series, Volume Soft Series and
Anti-Hair Loss Series. These additions aligned with promotional cycles to diversify the product size matrix
for hero products, meeting varied consumption scenarios and enhancing consumer stickiness.
During the Reporting Period, Off&Relax established an integrated marketing strategy of “brand asset
building + high-quality content model + multi-channel resonance model,” and carried out the following
marketing initiatives around its two core series -Flurry Series and Anti-Hair Loss Series:
(1) Building a celebrity endorsement matrix to elevate brand image and mass awareness
From February to March, the brand announced actor LIN Yi as its first official brand ambassador. In
collaboration with his hit drama Ski into Love, Off&Relax launched a co-branded gift box. LIN Yi’s calm
and focused persona aligns closely with the brand’s “Relaxation and healing” tone, enabling precise
engagement with young female audiences. The TVC Zero-Pressure Journey, Light as Volume garnered
over 60 million views, supported by offline large-screen promotions across five cities, reaching 15 million
people. The campaign achieved total impressions exceeding 100 million and drove strong sales conversion
during the “3.8” shopping festival.
From May to June, the brand announced its second ambassador, the actress JIANG Xin, alongside
“The Fluffy Lifestyle Ambassador”, actress WANG Yuwen, supplemented by the launch of the original
content IP “OR Fluffy Roaming,” in collaboration with over ten premium hotels and boutique resorts,
represented by the Fuchun Resort. This campaign reinforced Off&Relax’s association with relaxation &
healing-focused usage scenarios and solidified its positioning in the mid-to-high-end market. Celebrity
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
content, combined with a multi-dimensional KOL matrix and precise advertising placement and
amplification, drove brand growth of over 100% during the “618” shopping festival.
(2) Seasonal limited-edition, and scenario-based breakthrough marketing to drive sales peaks
In April, Off&Relax released its Spring Blossom Limited Edition and collaborated with the “plant b
Urban Forest Project” to host a floral-themed marketplace at Hangzhou Botanical Garden. Interactive
installations such as the “Relax Moment Wall” encouraged user-generated content, resulting in over 2
million organic impressions.
(3) Scientific communication in professional settings, enabling efficient conversion through
integrated short video and live-streaming formats.
In April, Off&Relax participated in the annual academic conference of the Combination of
Traditional and Western Medicine Dermatology, where Dr. YANG Dingquan—Director of the Hair
Medicine Center at China-Japan Friendship Hospital—formally presented the results of a top-tier hospital
clinical trial of the OR Medicated Hair Tonic, providing strong scientific validation for its efficacy.
In May, the brand launched the “Collagen Hair Growth Space” at the Shanghai R&D Center,
displaying in separate zones the brand’s R&D assets, the exclusive Type-17 collagen hair growth
mechanism, and supporting clinical efficacy data. An interactive scalp diagnostic experience was also set
up to further reinforce the brand’s scientific and research-driven image. Dozens of ingredient-focused,
beauty vertical, and lifestyle KOLs were invited to the event for on-site experiences and content creation.
The campaign integrated short video and live-streaming formats, effectively driving the Anti-Hair Loss
Essence to rank No. 1 in its category on Douyin during the “618” shopping festival.
(1) Tmall
During the Reporting Period, Off&Relax further reinforced its hero product strategy on Tmall,
increasing the penetration of its flagship shampoo while strategically focusing on the anti-hair loss essence
category. The brand continuously optimized operations targeting both new and existing consumers,
refined its membership strategy, and improved advertising placement both on and off the platform,
resulting in enhanced placement efficiency.
During the “618” shopping festival in 2025, the GMV of Off&Relax’s two Tmall stores ranked No.6
in the Hair Care category on Tmall (excluding dyeing, perming, and styling), and No.1 among domestic
hair care products, and maintained its position as the No. 1 Asian hair care brand. Its total GMV increased
over 110% YoY, and the brand broke into the Top 3 in the shampoo/anti-hair-loss serum segment. In the
first half of 2025, the GMV of Off&Relax’s two Tmall stores ranked No.6 in the Hair Care category on
Tmall (excluding dyeing, perming, and styling), and No.2 among domestic hair care products, with GMV
increased over 130% YoY.
(2) Douyin
During the Reporting Period, Off&Relax shifted its Douyin strategy from “traffic acquisition” to
“content deep cultivation”, leveraging refined operations and a content matrix approach to achieve GMV
growth while continuously optimizing expense ratios. In self-operated live-streaming, the brand
capitalized on the launch of its Spring Blossom Limited Edition to create breakout content moments.
Through improvements in placement structure, it enhanced internal promotion efficiency, contributing to
overall channel performance gains. In KOL live-streaming, Off&Relax gradually established a “1+X”
model, using content-driven partnerships with top-tier KOLs to expand the broader KOL matrix. On the
Douyin Mall front, the brand seized platform policy opportunities and continuously optimized product
listings to capture organic traffic and drive sales growth.
During the “618” shopping festival in 2025, the GMV of Off&Relax ranked No.6 in the Hair Care
category on Douyin and No.4 among domestic hair care products. Its second hero product, the Medicated
Hair Tonic, leveraged a combined “short video + live-streaming” strategy to significantly boost category
penetration and influence, climbing to the No. 1 ranking in the Scalp Essence category on Douyin. In the
first half of 2025, the GMV of Off&Relax’s two Douyin stores achieved YoY growth of over 100%.
(IV) HAPSODE
During the Reporting Period, HAPSODE steadily advanced its brand positioning strategy. Centered
on the concept of “Efficacy-oriented skincare for young skin”, the brand aimed to enhance its brand image
rooted in efficacy while resonating with youthful and joyful emotional appeal. It shaped its brand DNA
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
across four dimensions: specially-developed efficacy solutions, innovative product design, instantly
gratifying sensory experiences, and trend-forward emotional aesthetics.
During the Reporting Period, the brand advanced its product line from “basic cleansing” to functional
care focused on “redness repair”, launching new products such as the “Ultra Soothing Serum 2.0” and
“Ultra Soothing Mask” , which achieved rapid growth during the “618” shopping festival. In terms of
efficacy philosophy, the brand conducted in-depth research into the underlying causes of oily skin and
identified a “triangular dilemma” of oil-induced acne, oil-induced sensitivity, and oil-induced
pigmentation, offering scientifically backed concepts and solutions in response.
During the Reporting Period, HAPSODE continued to align with and respond to emerging youth-
driven trends and sentiments, deepening brand awareness and driving brand value growth.
(1) In March, HAPSODE partnered with the popular IP “LIPU Friends” to launch the themed
campaign “More Outrageous Happiness”! Through co-branded packaging and gift sets across multiple
products, the campaign conveyed the brand’s energetic image, resonated with youthful sentiments, and
significantly enhanced brand exposure.
(2) In June, HAPSODE collaborated with leading health and wellness platform “Dingxiang Doctor”
to reinforce the brand’s functional credibility through professional endorsement.
(1) Tmall
During the Reporting Period, HAPSODE consolidated brand momentum and resources to enhance
the penetration of marketing campaigns. By optimizing the product matrix and improving product
bundling strategies, the brand increased average order value and the share of repair-focused products
within the channel. Additionally, it enhanced synergy between on-platform and off-platform audiences,
and improved the tiered user operation system.
(2) Douyin
During the Reporting Period, HAPSODE placed strategic focus on the Douyin platform, achieving
growth in both KOL live-streaming and self-operated live-streaming during the “618” shopping festival.
With keen market insight, the brand maintained stable partnerships with top-tier KOLs while increasing
the frequency of specialized sessions with mid-to-upper-tier KOLs and inviting product and marketing
experts into live-streaming studios, effectively boosting the proportion of content-driven sales.
(V) INSBAHA
During the Reporting Period, INSBAHA created innovative single products across all categories,
securing a solid presence in segmented tracks.
(1) Base make-up: INSBAHA launched the new “Authentic Color Constructing Dual Contour Stick”,
pioneering a dual-texture, dual-shade design that marked a transition into the 2.0 era of contour products,
with cream & liquid dual contour stick tapping into a niche segment. Additionally, the “Primary Color
Multi-Effect Concealer Palette” was upgraded and relaunched, driving a breakthrough in base make-up
performance and contributing to rapid sales growth. The product gained a leading position in the facial
concealer category rankings.
(2) Color make-up: The “Glow Tint Lip Cream” leveraged its co-branded IP “Hello Kitty” to break
into new audience segments, and achieved rapid growth through KOL live-streaming sessions.
(3) Eye make-up: The “Soft Mist Wave Eyebrow Dyeing Cream” and “Wave Mascaras” solidified
their roles as core brand assets within the eye category matrix. The Eyebrow Dyeing Cream consistently
held the No. 1 sales position across both Tmall and Douyin, with its market share continuing to lead the
overall industry.
During the “618” shopping festival in 2025, the “Primary Color Multi-Effect Concealer Palette”
ranked Top 2 on Tmall’s Bestselling Concealer List and Top 3 on Tmall’s Positive Reviews List. The
Hello Kitty co-branded “Liquid Blusher” ranked the No. 1 position on Douyin’s Liquid Blush Popularity
List. The “Wave Mascaras” topped both the Bestselling and Popularity rankings in the eyebrow dyeing
cream category on Douyin.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
During the Reporting Period, INSBAHA’s transformation from an “Eye make-up expert” to a
“Balanced, trend-driven make-up brand” began to show tangible results, with a more even performance
across product lines. The brand continued to expand its brand awareness through comprehensive
campaigns leveraging IP collaborations and holiday and hot-topic marketing.
In April, INSBAHA partnered with the iconic IP “Hello Kitty” to launch a co-branded collection
(including Liquid Blusher, Cloudy Glow Tint Lip Cream, Wave Mirror Lip Glaze, and Mono Punk
Eyeshadow). The campaign brought Hello Kitty back to the golden era of punk rock, blending sweetness
and edge to interpret the multifaceted identities of girls.
(1) Tmall
During the Reporting Period, INSBAHA improved and balanced its product matrix, achieving
incremental growth in its eye make-up hero products while increasing the contribution of base make-
up products. The concealer category, in particular, saw a notable breakthrough in rankings during the
“618” shopping festival. By adopting a dual-link strategy for hero products, the brand effectively
captured both seeding and search-driven traffic. Content modules continued to gain momentum, with
Super Short Videos and enhanced product detail pages driving rapid traffic growth. In KOL live-
streaming, the brand collaborated with second-tier and mid-level KOLs under a structured framework,
while also piloting a new external traffic initiative—the Red Cat Plan CID. During the “618”
shopping festival, the brand recorded sales growth.
(2) Douyin
During the Reporting Period, INSBAHA continued to optimize its merchandise assortment.
Sales in the color make-up category achieved a breakthrough under the boost of IP collaborations,
while the eye make-up category led overall growth, and the base make-up category saw explosive
sales performance during the “618” shopping festival. In self-operated live-streaming, the brand
introduced innovative content strategies, combining “IP collaborations + surprise appearances by
brand directors” to create dual-impact marketing. This approach effectively captured and amplified
high-quality KOL traffic, driving sales growth. For KOL live-streaming, the brand built a high-quality
KOL matrix, significantly boosting output from mid-to-upper-tier KOLs and enabling parallel growth
across base make-up, color make-up, and eye make-up categories. On the Douyin Mall front, the
brand improved self-operated performance, actively participated in officially tagged campaigns, and
gained preferential access to platform traffic resources.
(VI) New R&D strategy
During the Reporting Period, the Company continued to strengthen its global R&D system,
completing R&D deployment across all key stages from raw materials to finished products. The Company
further enriched its R&D framework and established a professional and diversified R&D team to drive
product innovation.
At present, the Company operates three major R&D hubs: the Hangzhou Longwu R&D Center
(comprising the International Academy of Sciences and the R&D Innovation Center), the Shanghai R&D
Center, and the Europe Innovation Center. With technological innovation as the core driving force, these
centers support a full-cycle innovation chain covering basic research, applied development, and clinical
translation, providing strong support for technological advancement and industrial upgrading.
patents, 1 utility model patents, and 15 design patents, totaling 35 new patents; newly obtained 1 nationally
licensed invention patents, 5 utility model patents, and 9 design patents, totaling 15 new patents. As of the
end of the Reporting Period, the Company had 124 nationally authorized invention patents, 22 utility
model patents, and 94 design patents, totaling 240 patents.
Oroxylum indicum seed extract was successfully applied to multiple HAPSODE products and is planned
for use in future TIMAGE offerings. In addition, the Company’s independently developed high-purity
Piper methysticum root extract has also been successfully incorporated into HAPSODE products.
(1) During the Reporting Period, four of the Company’s technologies have been registered and
certified as Scientific and Technological Achievements of Zhejiang Province, including: “Study on Anti-
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Glycation and Anti-oxidation Mechanisms and Verification of Their Whitening & Anti-Aging Efficacy”,
“PROYA Advanced Original Repair Products Containing Sterol-Based Ingredients” , “PROYA Advanced
Firming Nourishing Series Skincare Products Containing Phytosterols and Squalane” , and “PROYA
Inaugurating Luminous Anti-Spot Whitening Series Products Containing Flavonoids and Sterol-Based
Ingredients”.
(2) During the Reporting Period, the Company published multiple papers in domestic and
international journals and academic conferences.
In the field of dermatological science, the exclusive Type XVII Recombinant Collagen used in the
Advanced Original Repair Series has been validated through structural biology, AI-based molecular
dynamics modeling, and histological studies, elucidating its anti-aging mechanisms and confirming its
ability to restore the integrity of the skin's basement membrane. The related findings have been published
in the international journal methectic of Agricultural and Food Chemistry. The research achievements on
other core technologies of the Advanced Original Repair Series, titled Study of the Repair Action and
Mechanisms of a Moisturizing Cream on an SLS-Damaged Skin Model Using Two-Photon Microscopy,
was published in the international journal Cosmetics.
In the area of hair and scalp care, the Company collaborated with systems biology experts from
Shanghai Jiao Tong University and published a study in the globally recognized journal The Journal of
Investigative Dermatology. The paper, titled Abnormal Microbial Amino Acid Metabolism and Activated
Pathogenesis in Scalp with Dandruff, presents results of metagenomic microbiome analysis on dandruff
among young adults.
(3) During the Reporting Period, the Company participated in various industry conferences and
forums, including the 30th Annual Meeting of the Chinese Society of Dermatology, Beauty Innovation
Days (Spain), Cosmoprof (Italy), and the 2025 China Conference of Cosmetics Science and Technology,
and delivered keynote presentations.
partnership with Hangzhou Bota Bio Co., Ltd., focusing on the integrated application of synthetic biology
and AI technologies. It also continued to strengthen existing strategic collaborations with partners such as
Ashland (China) Holdings Co., Ltd. and DSM Vitamins Trading（Shanghai）Co., Ltd. In addition, the
Company deepened its cooperative efforts with academic and medical institutions including Shanghai Jiao
Tong University, Zhejiang University, East China University of Science and Technology, Beijing
Technology and Business University, Shanghai Skin Disease Hospital, The Third Affiliated Hospital of
Sun Yat-sen University, and the Aging Science Innovation Research Center of the Yangtze Delta Region
Institute of Tsinghua University. These partnerships focused on advancing research in skin and hair follicle
mechanisms, scalp microbiome studies, and active efficacy ingredients.
(VII) New supply chain guarantee
digitalization and information system development. By leveraging the Feishu collaboration platform,
departments achieved both horizontal and vertical integration, driving a transformation toward a new
business model. Databases such as the Feishu workforce efficiency system and equipment O&M logs were
established, transforming various types of production data into valuable digital assets. This initiative
improved production efficiency and enabled more agile and efficient supply chain coordination.
planned. The project was selected as a national benchmark for digital transformation and upgrading. It has
promoted collaborative product development, design coordination, and digital integration across the
Company and its upstream and downstream partners. This initiative has driven the digital transformation
of stakeholders throughout the value chain, enhancing the overall competitiveness of the industrial
ecosystem.
consulting firm to restructure and upgrade its supply chain through digitalization. This transformation
shifted the model from a “push-based” to a “pull-based” supply chain, driven by consumer demand data.
By leveraging big data and AI technologies, the Company continuously optimized end-to-end operational
efficiency across the product supply chain. Through the use of an industrial internet platform, the supply
chain achieved cross-enterprise collaboration and transitioned from a cost center to a value center.
“carbon peaking and carbon neutrality” policy and thoroughly implemented the directives for building a
green manufacturing system, firmly advancing its transition toward intelligent, green, and low-carbon
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
operations. The Huzhou Production Base initiated a cross-functional innovation team involving R&D,
quality, production, and process departments to develop cold processing techniques for liquid-based
skincare products and facial mask production. Energy-saving technical upgrades for heating and cooling
processes were implemented during production, further optimizing the Company’s energy and carbon
management platform.
Certification, which not only affirms the Company’s efforts in energy management but also serves as a
key credential showcasing its commitment to a green, low-carbon, and environmentally responsible brand
image.
(VIII) New organizational strategy
internal intrapreneurship mechanism based on its business development roadmap to enhance vitality at the
business front line by decentralizing authority and resources. The Company also launched the “Million
Hero Project”, a company-wide initiative to identify and improve mechanisms, processes, and
management models that can be continuously optimized, fostering greater organizational efficiency and
cross-functional collaboration.
“embracing diversity, continuous growth, ambition and integrity”, the Company, under a strategy of
internationalization and youth empowerment, attracted a cohort of excellent talent with both global
perspective and strong local execution capabilities. Internally, the Company continued to invest in talent
pipeline development, refining its leadership competency model and applying it to training programs. The
management trainee program was further advanced to ensure a youthful, motivated, and growth-oriented
team.
value alignment to unite like-minded employees. Departments actively promoted the implementation of
corporate values through day-to-day operations, embedding cultural development into business contexts
and fostering alignment between beliefs and actions to strengthen team cohesion and cultural integration.
(IX) Digital & intelligent strategy
the SAP upgrade and restructuring project to establish a unified data and process governance system and
build an efficient digital infrastructure that supports the Company’s multi-brand, multi-channel
globalization strategy. The Company also launched the Product Lifecycle Management (PLM) project,
with defined goals including transparent progress tracking, efficient collaboration, quality control, and
closed-loop data management across the entire product lifecycle, strengthening end-to-end support for
product development and commercialization.
Company advanced the selection and development of key digital systems across business domains,
including product R&D and development, marketing, manufacturing, and supply chain management.
These included the successful completion of the “AI-powered cloud customer service” project—part of
the Company’s strategic collaboration with Ant Group’s “AI Force” initiative. By integrating AI
technology with a distributed service network, the project significantly improved customer service
efficiency and quality, supporting high-traffic peak scenarios. Additionally, the Company launched the AI
formula large-scale model project in partnership with external technology providers, exploring intelligent
R&D pathways to facilitate the transformation of formulation expertise into digital assets.
a new round of BI system upgrades. By automatically integrating multi-channel, multi-dimensional data
resources, the system significantly enhancing brand data management capabilities and operational
efficiency, while providing robust data support for refined decision-making.
continued to strengthen the data infrastructure and system foundations, with ongoing improvements in
data governance, data security, and cybersecurity capabilities.
Company established the Digitalization Committee and put it into structured operation. Meanwhile, the
Company advanced the integration of “business-driven IT” and “IT-enabled business”, and carried out
training on no-code applications and collaboration tools. In addition, the Company organized digital
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
culture events, including exclusive AI-themed salons to facilitate cross-departmental technical exchange.
It also prepared for an AI + digitalization summit and an Efficiency Pioneer Competition to cultivate
organization-wide digital awareness.
(I) Analysis of primary business
Unit: Yuan Currency: RMB
Amount for the
Amount for the
Item same period last Change (%)
current period
year
Operating revenue 5,361,890,476.66 5,001,465,470.72 7.21
Operating costs 1,427,500,235.41 1,509,530,495.30 -5.43
Sales expenses 2,658,870,093.11 2,339,661,922.31 13.64
General and administrative
expenses
Financial expenses -23,420,719.43 -24,649,322.32 Not applicable
R&D expenses 95,025,833.06 94,613,242.52 0.44
Net cash flows from operating
activities
Net cash flows from investing
-174,138,931.67 193,194,272.98 -190.14
activities
Net cash flows from financing
-477,161,516.14 -508,846,622.56 Not applicable
activities
Reasons for changes in operating revenue: Mainly due to increased online sales.
Reasons for changes in operating costs: Mainly due to cost savings from cost reduction and efficiency
improvement initiatives.
Reasons for changes in sales expenses: Sales expenses for January to June 2025 amounted to RMB2.659
billion, accounting for 49.59% of operating revenue (compared with 46.78% for the same period last year).
Sales expenses increased by RMB319 million a YOY increase of 13.64%, mainly due to an increase of
RMB299 million, a YOY increase of 14.48% in the image promotion expenses in the current period.
Reasons for changes in general and administrative expenses: General and administrative expenses for
January to June 2025 amounted to RMB177 million, accounting for 3.31% of operating revenue
(compared with 3.54% for the same period last year). General and administrative expenses remained
generally flat compared to the same period last year, with no significant changes.
Reasons for changes in financial expenses: Financial expenses for the period from January to June 2025
remained generally flat compared to the same period last year.
Reasons for changes in R&D expenses: R&D expenses for January to June 2025 amounted to RMB95
million, a YOY increase of RMB0.4126 million, accounting for 1.77% of operating revenue (compared
with 1.89% for the same period last year). The parent company’s R&D expense ratio for January to June
Reasons for changes in net cash flows from operating activities: Mainly due to: 1. A YOY increase in
operating revenue and the increase in cash received from the sale of goods; 2. The decrease in the payment
for goods; 3. The increase in the payment for image promotion expenses. 4. A YOY Increase in cash
payments to and on behalf of employees.
Reasons for changes in net cash flows from investing activities: Mainly due to: 1. Decrease in the matured
large-denomination certificates of deposit and time deposits recovered in the current period compared to
the previous period; 2. Increase in equity investment paid in the current period.
Reasons for changes in net cash flows from financing activities: Mainly due to: 1. Payment of RMB150
million for share repurchase in the previous period, with no such payment in the current period; 2. An
increase of RMB120 million in cash paid for the distribution of dividends, profits, or interest payments.
composition or sources of profit during the current period
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(II) Description on significant changes in profit caused by non-primary businesses
"□ Applicable" "√Not applicable"
(III) Analysis of assets and liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan
Change
ratio of
Proportion Proportion the
of the of the closing
closing closing amount
amount of Closing amount amount of of the
Closing amount of
Item the of the previous the current Explanation
the current period
current period previous period
period to period to compared
total total with that
assets (%) assets (%) of the
previous
year (%)
Mainly due to
the transfer
payments
Other related to
receivables equity
transfers of
subsidiaries
and associates.
Mainly due to
the external
transfer of the
associate
Long-term
Jiaxing
equity 9,472,473.37 0.11 111,090,815.70 1.48 -91.47
Woyong
investments
Investment
Partnership
(Limited
Partnership).
Mainly due to
Right-of-use added lease of
assets office
buildings.
Mainly due to
Long-term
added
deferred 133,842,067.80 1.62 70,202,612.96 0.93 90.65
endorsement
expenses
fees.
Mainly due to
the increase in
prepayments
Other non- for equity
current assets transfer funds
and long-term
asset purchase
funds.
Accounts 1,052,738,520.01 12.71 676,388,126.18 8.98 55.64 Mainly due to
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
payable an increase in
the closing
balance of
trade accounts
payable and
accrued
expenses.
Mainly due to
the increased
Receipts in
advance
receivable in
advance.
Mainly due to
the opening
balance
Employee
includes the
compensation 106,935,889.22 1.29 155,703,420.95 2.07 -31.32
unpaid year-
payable
end bonus
payable for the
year 2024.
Mainly due to
Non-current
increase in
liabilities due
within one
due within one
year
year
Mainly due to
Lease added lease of
liabilities office
buildings.
Other explanations
None
"√ Applicable" "□ Not applicable"
(1). Scale of assets
Including overseas assets of RMB22,443.70 (Unit: RMB '0,000 Currency: RMB), accounting for 2.71%
of the total assets.
(2). Description of a high percentage of overseas assets
"□ Applicable" "√Not applicable"
Other explanations
None
"√ Applicable" "□ Not applicable"
Unit: Yuan
Closing book Type of
Item Closing book value Cause for restrictions
balance restrictions
Not available
Large-denomination
certificates of deposit
Monetary on demand
capital Not available
on demand
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Closing book Type of
Item Closing book value Cause for restrictions
balance restrictions
Not available
Deposit for directly-
operated store
on demand
Judicially frozen
funds
Not available
Time deposit margin
for transformer
on demand
Total 1,247,299,552.85 1,247,299,552.85
"□ Applicable" "√Not applicable"
(IV) Analysis of investment
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing amount Opening amount
Other equity instrument
investments
Investment in joint ventures 3,260,940.24 3,263,226.71
Investment in associates 6,211,533.13 107,827,588.99
Total 80,729,468.55 182,347,810.88
For details, refer to the particulars contained in “17. Long-term equity investments” in “VII. Notes
to the Items in Consolidated Financial Statements”, “Section VIII Financial Report” of this Report.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(1).Significant equity investments
"□ Applicable" "√Not applicable"
(2).Significant non-equity investments
"□ Applicable" "√Not applicable"
(3).Financial assets measured at fair value
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Gains or
Accumulated Impairment
losses from
fair value provisions Purchase Disposal/redemption
Opening fair value Closing
Asset category changes made during amount for the amount during the Other changes
amount changes for amount
included in the current current period current period
the current
equity period
period
Others 71,256,995.18 71,256,995.18
Total 71,256,995.18 71,256,995.18
Information on security investments
"□ Applicable" "√Not applicable"
Explanation of securities investment
"□ Applicable" "√Not applicable"
Information on private equity fund investment
"□ Applicable" "√Not applicable"
Information on derivative investments
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(V) Significant asset and equity disposals
"□ Applicable" "√Not applicable"
(VI) Analysis of major subsidiaries and associates
"√ Applicable" "□ Not applicable"
Major subsidiaries and associates contributing over 10% to net profit
"√ Applicable" "□ Not applicable"
Unit: RMB '0,000 Currency: RMB
Primary Registered Operating
Company name Company type Total assets Net assets Operating profit Net profit
businesses capital revenue
Ningbo
TIMAGE
Subsidiary Cosmetics sales 100.00 53,655.76 39,541.55 70,293.51 13,555.21 9,654.86
Cosmetics Co.,
Ltd.
Acquisitions and disposals of subsidiaries during the Reporting Period
"√ Applicable" "□ Not applicable"
Company name Methods of acquisitions and disposals of subsidiaries Impact on overall operations and performance
during the Reporting Period
Zhejiang Beauty Cosmetics Co., Ltd. 100% equity transfer No significant impact
Other explanations
"□ Applicable" "√Not applicable"
(VII) Structured entities under control of the Company
"□ Applicable" "√Not applicable"
V. Other Disclosures
(I) Possible risks
"√ Applicable" "□ Not applicable"
(1) Intensifying competition among brands in the industry; and the Company’s brand and channel strategies falling short of expectations;
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(2) Increasing competition in marketing placement; and cost control over digital and precision marketing investments falling short of expectations.
(1) New brand incubation risk: High marketing investment; and underperforming results;
(2) New category development risk: Significant differences in operational models across categories; team performance not meeting requirements; and overall
results falling short of expectations.
(II) Other disclosures
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Section IV Company Governance, Environment, and Society
I. Changes in Directors, Supervisors and Senior Management of The Company
"√ Applicable" "□ Not applicable"
Name Position held Change in position
WANG Li Deputy General Manager, Board Secretary, CFO Resigned
Description of changes in directors, supervisors and senior management of the Company
"√ Applicable" "□ Not applicable"
On May 19, 2025, the Company’s Board of Directors received a written resignation letter from Ms.
WANG Li. Due to her personal career development plans, Ms. WANG applied to resign from her positions
as Deputy General Manager, Board Secretary, and CFO of the Company. Following her resignation, Ms.
WANG Li will no longer hold any position within the Company.
During the vacancy of the Board Secretary position, Chairman Mr. HOU Juncheng will temporarily
assume the responsibilities of Board Secretary. During the vacancy of the CFO position, General Manager
Mr. HOU Yameng will temporarily assume the responsibilities of CFO.
II. Profit Distribution Plan and Plan for Capitalization of Capital Reserves
Profit distribution plan and plan for capitalization of capital reserves proposed for the first half of
Distribution or capitalization or not Yes
Number of bonus shares distributed per 10 shares 0
(share)
Amount of cash dividends per 10 shares (RMB) 8.00
(tax inclusive)
Number of shares capitalized per 10 shares (share) 0
Description of profit distribution plan and plan for capitalization of capital reserves
The Company proposes to distribute a cash dividend of RMB8.00 (tax inclusive) for every 10 shares to
all registered shareholders based on the total share capital (excluding the shares held in the Company’s
special securities account for repurchase) as of the equity registration date for the implementation of
the profit distribution. Based on the total share capital of 396,247,646 shares as of June 30, 2025, and
after deducting 2,210,825 shares held in the Company’s special securities account for repurchase, the
estimated aggregate cash dividend to be distributed will be RMB315,229,456.80 (tax inclusive). No
capitalization of the capital reserve into share capital and no bonus shares will be implemented. Prior
to the equity registration date for the implementation of the profit distribution, if the Company’s total
share capital changes due to the conversion of convertible bonds or other reasons, the distribution ratio
per share will remain unchanged, and the total distribution amount will be adjusted accordingly.
III. The Company's Equity Incentive Plans, Employee Stock Ownership Plans or Other Employee
Incentives and Their Impact
(I) Relevant equity incentive matters disclosed in the interim announcement and with no
progress or change in subsequent implementation
"√ Applicable" "□ Not applicable"
Matter Reference
Announcement on Adjusting the
Price and Quantity of Restricted
Announcement No. 2023-036 disclosed on SSE website, Shanghai
Shares Repurchased under the
Securities News, and Securities Times on June 21, 2023
Plan
Announcement on the Repurchase
Announcement No. 2023-037 disclosed on SSE website, Shanghai
and Cancellation of Some Equity
Securities News, and Securities Times on June 21, 2023
Incentive Restricted Shares
Announcement on the Announcement No. 2023-044 disclosed on SSE website, Shanghai
Implementation of the Repurchase Securities News, and Securities Times on August 22, 2023
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
and Cancellation of Some
Restricted Shares under the 2022
Restricted Shares Incentive Plan
Announcement No. 2023-058 disclosed on SSE website, Shanghai
Announcement on the Repurchase
Securities News, Securities Times, China Securities Journal,
and Cancellation of Some Equity
Securities Daily, Economic Information Daily, and China Daily
Incentive Restricted Shares
on September 15, 2023
Announcement on the Satisfaction
of Conditions for Release from Announcement No. 2023-061 disclosed on SSE website, Shanghai
Sales Restrictions in the First Securities News, Securities Times, China Securities Journal,
Release Period under the 2022 Securities Daily, Economic Information Daily, and China Daily
Restricted Shares Incentive Plan on September 20, 2023
and Listing
Announcement No. 2023-069 disclosed on SSE website, Shanghai
Announcement on Adjusting the
Securities News, Securities Times, China Securities Journal,
Repurchase Price of the 2022
Securities Daily, Economic Information Daily, and China Daily
Restricted Shares Incentive Plan
on October 24, 2023
Announcement on the
Announcement No. 2023-080 disclosed on SSE website, Shanghai
Implementation of the Repurchase
Securities News, Securities Times, China Securities Journal,
and Cancellation of Some
Securities Daily, Economic Information Daily, and China Daily
Restricted Shares under the 2022
on December 11, 2023
Restricted Shares Incentive Plan
Announcement No. 2024-037 disclosed on SSE website, Shanghai
Announcement on Adjusting the
Securities News, Securities Times, China Securities Journal,
Repurchase Price of the 2022
Securities Daily, Economic Information Daily, and China Daily
Restricted Shares Incentive Plan
on August 28, 2024
Announcement No. 2024-038 disclosed on SSE website, Shanghai
Announcement on the Repurchase
Securities News, Securities Times, China Securities Journal,
and Cancellation of Some Equity
Securities Daily, Economic Information Daily, and China Daily
Incentive Restricted Shares
on August 28, 2024
Announcement on the
Announcement No. 2024-049 disclosed on SSE website, Shanghai
Implementation of the Repurchase
Securities News, Securities Times, China Securities Journal,
and Cancellation of Some
Securities Daily, Economic Information Daily, and China Daily
Restricted Shares under the 2022
on October 21, 2024
Restricted Shares Incentive Plan
Announcement on the Satisfaction
of Conditions for Release from Announcement No. 2024-052 disclosed on SSE website, Shanghai
Sales Restrictions in the Second Securities News, Securities Times, China Securities Journal,
Release Period under the 2022 Securities Daily, Economic Information Daily, and China Daily
Restricted Shares Incentive Plan on October 25, 2024
and Listing
Announcement No. 2025-033 disclosed on SSE website, Shanghai
Announcement on Adjusting the
Securities News, Securities Times, China Securities Journal,
Repurchase Price of the 2022
Securities Daily, Economic Information Daily, and China Daily
Restricted Shares Incentive Plan
on June 27, 2025
Announcement No. 2025-034 disclosed on SSE website, Shanghai
Announcement on the Repurchase
Securities News, Securities Times, China Securities Journal,
and Cancellation of Some Equity
Securities Daily, Economic Information Daily, and China Daily
Incentive Restricted Shares
on June 27, 2025
Announcement on the
Announcement No. 2025-037 disclosed on SSE website, Shanghai
Implementation of the Repurchase
Securities News, Securities Times, China Securities Journal,
and Cancellation of Some
Securities Daily, Economic Information Daily, and China Daily
Restricted Shares under the 2022
on August 19, 2025
Restricted Shares Incentive Plan
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(II) Incentives not disclosed in the interim announcement or with subsequent progress
Particulars of equity incentives
"□ Applicable" "√Not applicable"
Other explanations
"□ Applicable" "√Not applicable"
Particulars of employee stock ownership plans
"□ Applicable" "√Not applicable"
Other incentives
"□ Applicable" "√Not applicable"
IV. Environmental information disclosure of listed companies and their major subsidiaries
included in the list of companies subject to mandatory environmental information disclosure
"□ Applicable" "√Not applicable"
Other explanations
"□ Applicable" "√Not applicable"
V. Poverty Alleviation and Rural Revitalization Progress
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Section V Important Matters
I. Fulfillment of Commitments
(I) Commitments made by the Company's actual controllers, shareholders, related parties, acquirers and the Company and other relevant parties during
the Reporting Period or continuing to the Reporting Period
"√ Applicable" "□ Not applicable"
The next
Whether the Specific
step in the
Background Any commitment reasons
Commitment Commitment Commitment event of
of Commitment content deadline for Duration is timely for failure
type party date failure of
commitment performance and strictly of on-time
on-time
performed fulfillment
fulfillment
Restrictions Directors, (1) During their terms as November No From Yes Not Not
on sales of senior the Company's 15, 2017 November applicable applicable
shares management director/senior 15, 2017
HOU management, they shall not to long
Juncheng, transfer more than 25% of term
FANG their total shares directly or
Yuyou and indirectly held in the
CAO Company each year. Within
Liangguo 6 months after leaving
office, they shall not
IPO-related
transfer their shares directly
commitments
or indirectly held in the
Company. (2) If their
shares in the Company are
sold within two years upon
expiration of the lock-up
period, the selling price
shall not be lower than the
offering price. If the closing
price of the Company's
shares is lower than the
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
offering price for 20
consecutive trading days
within 6 months after the
Company's IPO, or the
closing price as of the end
of the 6-month period after
the Company's IPO is lower
than the offering price, the
lock-up period for their
shares in the Company will
be automatically extended
for 6 months. Their
commitments above shall
survive job change and
resignation. (3) Should any
of them/their partnership
violate the said share lock-
up commitments, the lock-
up period for their/their
partnership's shares in the
Company will be
automatically extended for
Restrictions Senior (1) Within 12 months from April 16, No From Yes Not Not
on sales of management the date of the Company's 2018 April 16, applicable applicable
shares JIN Yanhua IPO, they shall not transfer 2018 to
or authorize others to long term
manage their shares directly
or indirectly held in the
Company or have the
Company repurchase such
shares. (2) During their
terms as the Company's
senior management, they
shall not transfer more than
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
directly or indirectly held in
the Company each year.
Within 6 months after
leaving office, they shall
not transfer their shares
directly or indirectly held in
the Company. (3) If their
shares in the Company are
sold within two years upon
expiration of the lock-up
period, the selling price
shall not be lower than the
offering price. If the closing
price of the Company's
shares is lower than the
offering price for 20
consecutive trading days
within 6 months after the
Company's IPO, or the
closing price as of the end
of the 6-month period after
the Company's IPO is lower
than the offering price, the
lock-up period for their
shares in the Company will
be automatically extended
for 6 months. Their
commitments above shall
survive job change and
resignation. (4) Should any
of them/their partnership
violate the said share lock-
up commitments, the lock-
up period for their/their
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
partnership's shares in the
Company will be
automatically extended for
Restrictions Senior (1) Within 12 months from September 3, No From Yes Not Not
on sales of management the date of the Company's 2018 September applicable applicable
shares WANG Li IPO, they shall not transfer 3, 2018 to
or authorize others to long term
manage their shares directly
or indirectly held in the
Company or have the
Company repurchase such
shares. (2) During their
terms as the Company's
senior management, they
shall not transfer more than
directly or indirectly held in
the Company each year.
Within 6 months after
leaving office, they shall
not transfer their shares
directly or indirectly held in
the Company. (3) If their
shares in the Company are
sold within two years upon
expiration of the lock-up
period, the selling price
shall not be lower than the
offering price. If the closing
price of the Company's
shares is lower than the
offering price for 20
consecutive trading days
within 6 months after the
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Company's IPO, or the
closing price as of the end
of the 6-month period after
the Company's IPO is lower
than the offering price, the
lock-up period for their
shares in the Company will
be automatically extended
for 6 months. Their
commitments above shall
survive job change and
resignation. (4) Should any
of them/their partnership
violate the said share lock-
up commitments, the lock-
up period for their/their
partnership's shares in the
Company will be
automatically extended for
Restrictions Controlling (1) Within 24 months upon November No From Yes Not Not
on sales of shareholder expiration of the lock-up 15, 2017 November applicable applicable
shares and actual period, they shall not 15, 2017
controller directly or indirectly reduce to long
HOU their shares in the issuer by term
Juncheng more than 6% of the total
and FANG number of shares of the
Aiqin issuer before such IPO. (2)
They can only sell shares in
the Company through
methods including but not
limited to collective trading
through bidding at the stock
exchange, block trading,
and transfer by agreement
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
in line with applicable laws,
regulations and rules. (3)
Before selling the
Company's shares, they
shall announce the same
three trading days in
advance, discharge the
obligation to disclose
information in a timely and
accurate manner as per the
rules of the stock exchange,
except to the extent that
their shares in the Company
are less than 5%. (4)
Should they fail to perform
the said intent of share
reduction, they must
explain the cause for failing
to do so at the Company's
General Meeting of
Shareholders and the media
designated by the CSRC
and publicly apologize to
the Company's shareholders
and investors.
Restrictions Shareholders (1) If they intend to reduce November No From Yes Not Not
on sales of FANG shares after the lock-up 15, 2017 November applicable applicable
shares Yuyou and period expires, they will 15, 2017
LI Xiaolin prudently make a share to long
directly reduction plan as necessary term
holding for the Company to
more than stabilize the share price,
the conduct capital operation as
Company required by the CSRC and
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
the exchange on
shareholders for share
reduction, whereby
reducing shares gradually
upon expiration of the lock-
up period. (2) They can
only sell shares in the
Company through methods
including but not limited to
collective trading through
bidding at the stock
exchange, block trading,
and transfer by agreement
in line with applicable laws,
regulations and rules. (3)
Before selling the
Company's shares, they
shall announce the same
three trading days in
advance, discharge the
obligation to disclose
information in a timely and
accurate manner as per the
rules of the stock exchange,
except to the extent that
their shares in the Company
are less than 5%. (4)
Should they fail to perform
the said intent of share
reduction, they must
explain the cause for failing
to do so at the Company's
General Meeting of
Shareholders and the media
designated by the CSRC
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
and publicly apologize to
the Company's shareholders
and public investors.
Others The When the preconditions for November No From Yes Not Not
Company enabling the share price 15, 2017 November applicable applicable
stabilization plan are met, if 15, 2017
the Company fails to take to long
specific measures to term
stabilize the share price, the
Company must explain the
cause for failing to do so at
the Company's General
Meeting of Shareholders
and the media designated
by the CSRC and publicly
apologize to the Company's
shareholders and public
investors. In the event of
losses to investors not as a
result of force majeure, the
Company will be liable for
compensation to investors
by law, and be liable
otherwise as required by
laws, regulations and
competent regulators; if the
losses are caused due to
force majeure, the
Company shall work out a
plan in the shortest possible
time to minimize losses to
investors and submit it to
the General Meeting of
Shareholders for
deliberation, so as to
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
protect the interests of the
Company's investors as
much as possible. Within
three years from the date of
the Company's IPO, if the
Company appoints new
directors and senior
management, the Company
will require such new
directors and senior
management to fulfill the
commitments made by the
directors and senior
management at the time of
the Company's IPO.
Others The When the preconditions for November No From Yes Not Not
Company's enabling the share price 15, 2017 November applicable applicable
controlling stabilization plan are met, if 15, 2017
shareholders failing to take specific to long
and actual measures to stabilize the term
controllers share price as per the plan,
they must explain the cause
for failing to do so at the
issuer's General Meeting of
Shareholders and the media
designated by the CSRC
and publicly apologize to
the issuer's shareholders
and public investors. Where
the commitment is not
fulfilled, they will not
receive shareholder
dividends from the issuer
within 5 working days from
the date when the said
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
incident occurs, and they
will not be able to transfer
their shares until they have
taken and carried out
measures to stabilize the
share price as per the said
plan.
Others The When the preconditions for November No From Yes Not Not
Company's enabling the share price 15, 2017 November applicable applicable
directors stabilization plan are met, if 15, 2017
(excluding failing to take specific to long
independent measures to stabilize the term
directors) share price as per the plan,
and senior they must explain the cause
management for failing to do so at the
issuer's General Meeting of
Shareholders and the media
designated by the CSRC
and publicly apologize to
the issuer's shareholders
and public investors. Where
the commitment is not
fulfilled, they will not
receive compensation and
shareholder dividends (if
any) from the issuer within
date when the said incident
occurs, and they will not be
able to transfer their shares
until they have taken and
carried out measures to
stabilize the share price as
per the said plan.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Others The If the Company's November No From Yes Not Not
Company prospectus contains false 15, 2017 November applicable applicable
records, misleading 15, 2017
statements or major to long
omissions, which causes term
investors to suffer losses in
securities transactions, they
will compensate investors
for such losses by law.
After the illegal facts
mentioned above are
identified by the CSRC or
the stock exchange on
which the Company is
listed or the competent
judicial authority, the
Company will actively
compensate investors for
direct economic losses
incurred therefrom by
settling with investors with
respect to measurable
economic losses directly
incurred to investors,
mediating with investors
through a third party and
establishing an investor
compensation fund based
on the principles of
procedure simplification,
active negotiation,
compensation in advance,
and effective protection of
investors' interests,
especially small and
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
medium investors. If found
to have violated the said
commitments, the
Company will publicly
apologize to shareholders
and public investors for
failing to perform the said
compensation measures at
the General Meeting of
Shareholders and the media
designated by the CSRC
and compensate investors
for the actual losses
identified by the CSRC and
the competent judicial
authority.
Others The issuer's If the issuer's prospectus November No From Yes Not Not
controlling contains false records, 15, 2017 November applicable applicable
shareholders misleading statements or 15, 2017
and actual major omissions, which to long
controllers causes investors to suffer term
losses in securities
transactions, they will
compensate investors for
such losses by law. After
the illegal facts mentioned
above are identified by the
CSRC or the stock
exchange on which the
Company is listed or the
competent judicial
authority, the Company
will actively compensate
investors for direct
economic losses incurred
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
therefrom by settling with
investors with respect to
measurable economic
losses directly incurred to
investors, mediating with
investors through a third
party and establishing an
investor compensation fund
based on the principles of
procedure simplification,
active negotiation,
compensation in advance,
and effective protection of
investors' interests,
especially small and
medium investors. If found
to have violated the said
commitments, the
Company's controlling
shareholders and actual
controllers will publicly
apologize to the issuer's
shareholders and public
investors for failing to
perform the said
compensation measures at
the issuer's General
Meeting of Shareholders
and the media designated
by the CSRC and will not
receive shareholder
dividends from the Issuer
within 5 working days from
the date when the said
commitments are violated,
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
and their shares in the
issuer will not be
transferred until they have
taken and carried out
compensation measures as
per the said commitments.
Others Directors, If the issuer's prospectus November No From Yes Not Not
supervisors contains false records, 15, 2017 November applicable applicable
and senior misleading statements or 15, 2017
management major omissions, which to long
causes investors to suffer term
losses in securities
transactions, they will
compensate investors for
such losses by law. After
the illegal facts mentioned
above are identified by the
CSRC or the stock
exchange on which the
Company is listed or the
competent judicial
authority, the Company
will actively compensate
investors for direct
economic losses incurred
therefrom by settling with
investors with respect to
measurable economic
losses directly incurred to
investors, mediating with
investors through a third
party and establishing an
investor compensation fund
based on the principles of
procedure simplification,
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
active negotiation,
compensation in advance,
and effective protection of
investors' interests,
especially small and
medium investors. If found
to have violated the said
commitments, the
Company's directors,
supervisors and senior
management will publicly
apologize to the issuer's
shareholders and public
investors for failing to
perform the said
compensation measures at
the issuer's General
Meeting of Shareholders
and the media designated
by the CSRC and will not
receive compensation (or
allowances) and
shareholder dividends (if
any) from the issuer within
date when the said
commitments are violated,
and their shares in the
issuer will not be
transferred until they have
taken and carried out
compensation measures as
per the said commitments.
Others The In order to ensure the November No From Yes Not Not
Company effective use of the 15, 2017 November applicable applicable
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
proceeds from the IPO, 15, 2017
effectively prevent the risk to long
of diluting immediate term
returns and improve future
returns, the Company
intends to take measures
including tightening
operation management and
internal control,
accelerating the progress of
fundraising projects, and
strengthening the investor
return mechanism, so as to
improve asset quality,
increase operating revenue,
raise future earnings, and
achieve sustainable
development to fill the
diluted immediate returns.
The Company promises to
continuously improve
various measures to fill the
diluted immediate returns
in accordance with the
implementation rules
subsequently issued by the
CSRC and Shanghai Stock
Exchange. If found to have
violated the said
commitments, the
Company will promptly
announce the facts and
cause of such violation,
except for force majeure or
other reasons not
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
attributable to the
Company, apologize to the
Company's shareholders
and public investors, make
supplementary
commitments or substitute
commitments to investors
to protect the interests of
investors as much as
possible, and implement
such supplementary
commitments or substitute
commitments subject to the
approval by the Company's
General Meeting of
Shareholders.
Others Controlling In order to ensure that the November No From Yes Not Not
shareholder Company’s measures to fill 15, 2017 November applicable applicable
and actual the diluted immediate 15, 2017
controller returns can be effectively to long
HOU performed, they, as the term
Juncheng Company’s controlling
and FANG shareholder and actual
Aiqin controller, promise that: (1)
Under no circumstances
will they abuse their
position as the controlling
shareholder and actual
controller by ultra vires
interfering with the
Company’s operation and
management activities or
encroaching on the
Company’s interests; (2)
After the CSRC and the
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
SSE have otherwise
released opinions and
implementation rules on
measures to fill the diluted
immediate returns and such
commitments, if the
Company’s relevant
provisions and his or her
commitments contradict
such rules, they will
immediately make
supplementary
commitments in line with
such rules of the CSRC and
the SSE, and actively work
towards the Company's
issuing of new
commitments or measures
to comply with the
requirements of the CSRC
and the SSE; (3) They will
fully, completely and
promptly perform the
Company’s measures
regarding compensation for
the diluted immediate
returns and his or her
commitments regarding the
measures to compensate for
the diluted immediate
returns. If found to have
violated such commitments,
which causes losses to the
Company or shareholders,
they are willing to: ①
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
explain the cause and
apologize at the General
Meeting of Shareholders
and the media designated
by the CSRC; ② be held
liable for compensation to
the Company and/or
shareholders by law; ③
unconditionally accept the
penalties or regulatory
measures taken by the
CSRC and/or the SSE and
other securities regulators
as per relevant regulations
and rules. The said
measures to fill the diluted
immediate returns shall not
be deemed to constitute a
guarantee for the
Company's future profits.
Others Directors, In order to ensure that the November No From Yes Not Not
senior Company’s measures to fill 15, 2017 November applicable applicable
management for the diluted immediate 15, 2017
returns can be effectively to long
performed, they, as the term
Company’s directors and
senior management,
promise that: (1) They will
not offer benefits to other
entities or individuals for
free or on unfair terms, or
otherwise harm the
Company’s interests; (2)
They will strictly follow the
Company’s budget
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
management by limiting his
or her duty consumption to
the extent required, subject
to the Company’s
supervision and
management and free from
waste or excessive
consumption; (3) They will
not use the Company’s
assets to engage in
investment and
consumption activities
unrelated to his or her
duties; (4) They will
actively work towards the
improvement of the
Company's the
compensation system, so as
to be more in line with the
requirements for filling the
diluted immediate returns;
support the Company’s
Board of Directors or
Compensation Committee
in linking the
implementation of the
Company’s measures to fill
the diluted immediate
returns to developing,
revising and supplementing
the Company’s
compensation system;
promise that the vesting
conditions for the
Company’s equity
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
incentives to be announced
will be linked to the
implementation of the
Company’s measures to fill
the returns; (5) After the
CSRC and the SSE
otherwise release the
opinions and
implementation rules on the
measures to fill the diluted
immediate returns and their
commitments, if the
Company’s relevant
provisions and his or her
commitments contradict
such rules, they will
immediately make
supplementary
commitments in line with
the rules of the CSRC and
the SSE, and actively work
towards the Company's
making of new
commitments or taking new
measures to comply with
the requirements of the
CSRC and the SSE; (6)
They will fully, completely
and promptly perform the
Company’s measures
regarding filling the diluted
immediate returns and his
or her commitments
regarding the measures to
fill the diluted immediate
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
returns. If found to have
violated such commitments,
which causes losses to the
Company or shareholders,
they are willing to: ①
explain the cause and
apologize at the General
Meeting of Shareholders
and the media designated
by the CSRC; ② be held
liable for compensation to
the Company and/or
shareholders by law; ③
unconditionally accept the
penalties or regulatory
measures taken by the
CSRC and/or the SSE and
other securities regulators
as per relevant regulations
and rules. The said
measures to fill the diluted
immediate returns shall not
be deemed to constitute a
guarantee for the issuer's
future profits.
Avoiding Controlling 1. They do not and will not November No From Yes Not Not
horizontal shareholder directly or indirectly 15, 2017 November applicable applicable
competition and actual engage in any activities 15, 2017
controller constituting horizontal to long
HOU competition with the term
Juncheng existing and future
and FANG businesses of the Company
Aiqin and its holding subsidiaries,
including but not limited to
the R&D, production and
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
sale of any products that are
the same as or similar to
those of the Company and
its holding subsidiaries.
They shall be liable for
economic losses caused by
violation of the above
commitments to the
Company. 2. For the
enterprises under his or her
control, they will perform
their obligations under such
commitments through the
agencies and personnel
(including but not limited
to directors and managers),
and they shall be liable for
the economic losses caused
by violation of the above
commitments to the
Company. 3. From the date
of signing this letter of
commitment, if the
Company further expands
the scope of its products
and business, they or the
enterprises under his or her
control shall not compete
with the Company within
the expanded product or
business scope, or will, in
case of any possible
competition with the
Company within the
expanded product or
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
business scope, withdraw
from the competition by:
(1) stopping the production
of competing or potentially
competing products; (2)
stopping the operation of
competing or potentially
competing business; (3)
transferring the competing
business to the Company;
or (4) transferring the
competing business to an
unrelated third party. 4.
Their shareholding
companies, including
Hangzhou Huazhuang
Industrial Investment Co.,
Ltd. and Huzhou Mogan
Wangshu Cosmetics
Industry Phase I Venture
Capital Partnership
(Limited Partnership), and
enterprises that they invest
in or engage in no
cosmetics business or
upstream and downstream
business thereof. If these
companies engage in such
businesses in the future,
they commit that they will
withdraw their investment
in the enterprises through
equity transfer and other
means, and that the
Company will be given
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
priority to decide whether
to invest in the said
enterprises according to
legal provisions and the
consent of other
shareholders of such
enterprises.
Others Controlling In order to ensure that the April 21, No From Yes Not Not
shareholder Company’s measures to fill 2021 April 21, applicable applicable
and actual the immediate returns can 2021 to
controller be effectively performed, long term
HOU they commit that: 1. They
Juncheng will not interfere with the
and FANG Company’s operation and
Aiqin management activities
beyond their authority or
encroach on the Company’s
interests; 2. From the date
of making these
commitments to the
Commitments
completion of the
on
Company’s public offering
refinancing
of A-share convertible
corporate bonds, in the
event that the CSRC makes
other new regulatory
requirements regarding the
measures to fill returns and
the commitments thereof,
and if the above
commitments cannot satisfy
such requirements of the
CSRC, they will make
supplementary
commitments as per the
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
latest requirements of the
CSRC at that time; 3. They
will effectively implement
the Company’s measures to
fill returns and their
commitments in this regard,
and if found to have
violated such commitments,
which results in losses to
the Company or investors,
they are willing to be liable
for compensation to the
Company or investors
according to law. As one of
the parties responsible for
the measures to fill the
returns, should they violate
or refuse to fulfill the above
commitments, they shall be
subject to the punishment
or relevant regulatory
measures imposed on them
by the security regulatory
authorities such as the
CSRC and the SSE in
accordance with the
relevant regulations and
rules.
Others Directors, In order to ensure that the April 21, No From Yes Not Not
senior Company’s measures to fill 2021 April 21, applicable applicable
management the immediate returns can 2021 to
be effectively performed, long term
they commit that: 1. They
will not offer benefits to
other entities or individuals
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
for free or on unfair terms,
or otherwise harm the
Company’s interests; 2.
They will restrict their post-
related consumption
behaviors; 3. They will not
use the Company’s assets
to engage in investment and
consumption activities
unrelated to his or her
duties; 4. They will link the
compensation system
established by the Board of
Directors or the
Compensation and
Appraisal Committee to the
implementation of the
Company’s measures for
filling returns; 5. If the
Company implements
equity incentives in the
future, the vesting
conditions for the
Company’s equity
incentives to be announced
will be linked to the
implementation of the
Company’s measures to fill
the returns; 6. From the
date of this commitment to
the completion of the
Company’s public offering
of A-share convertible
corporate bonds, if the
CSRC makes other new
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
regulatory requirements
regarding the measures to
fill returns and the
commitments thereof, and
if the above commitments
cannot satisfy such
requirements of the CSRC,
they will make
supplementary
commitments as per the
latest requirements of the
CSRC. As one of the
parties responsible for the
measures to fill the returns,
should they violate or
refuse to fulfill the above
commitments, they shall be
subject to the punishment
or relevant regulatory
measures imposed on them
by the security regulatory
authorities such as the
CSRC and the SSE in
accordance with the
relevant regulations and
rules.
II. Non-operating Capital Occupation by the Controlling Shareholders and Other Related Parties during the Reporting Period
"□ Applicable" "√Not applicable"
III. Illegal Guarantee
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
IV. Audit of the Semi-Annual Report
"□ Applicable" "√Not applicable"
V. Information on Changes and Handling of Matters Related to Non-Standard Audit Opinions
in the Annual Report for the Previous Year
"□ Applicable" "√Not applicable"
VI. Matters Related to Bankruptcy and Reorganization
"□ Applicable" "√Not applicable"
VII. Material Litigations and Arbitrations
"□ The Company had material litigations and arbitrations during the Reporting Period"
"√ The Company had no material litigations and arbitrations during the Reporting Period"
VIII. Suspected Violations, Penalties and Rectifications of the Company and Its Directors,
Supervisors, Senior Management, Controlling Shareholders and Actual Controllers
"□ Applicable" "√Not applicable"
IX. Integrity of the Company and Its Controlling Shareholders and Actual Controllers during the
Reporting Period
"√ Applicable" "□ Not applicable"
During the Reporting Period, the Company and its controlling shareholders and actual controllers
were in good faith.
X. Significant Related-party Transactions
(I) Related-party transactions pertaining to daily operation
the follow-up implementation
"□ Applicable" "√Not applicable"
follow-up implementation
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
(II) Related-party transactions relevant to asset acquisition or equity acquisition and disposal
the follow-up implementation
"□ Applicable" "√Not applicable"
follow-up implementation
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
performance
"□ Applicable" "√Not applicable"
(III) Significant related-party transactions pertaining to joint external investment
the follow-up implementation
"□ Applicable" "√Not applicable"
follow-up implementation
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
(IV) Credits and debits with related parties
the follow-up implementation
"□ Applicable" "√Not applicable"
follow-up implementation
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
(V) Financial business between the Company and related financial companies, holding financial
companies and related parties
"□ Applicable" "√Not applicable"
(VI) Other significant related-party transactions
"□ Applicable" "√Not applicable"
(VII) Others
"□ Applicable" "√Not applicable"
XI. Significant Contracts and Their Performance
(I) Trusteeship, contracting and leasing
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(II) Significant guarantees that have been performed or remained outstanding during the Reporting Period
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(III) Other material contracts
"□ Applicable" "√Not applicable"
XII. Progress on the Use of Raised Funds
"√ Applicable" "□ Not applicable"
(I) Overall use of raised funds
"√ Applicable" "□ Not applicable"
Unit: RMB '0,000
Including: Proportion
Proportion
Total Total of over-
Total of raised Total
Total amount amount of raised
committed funds amount
amount of of raised over- funds Amount Proportion of
Total investment invested of raised
Source of over- funds raised invested invested amount
Time of amount of Net raised of raised as of the funds
raised raised invested funds as of the in the invested in the
paying in raised funds (1) funds in end of the whose
funds funds as of the invested end of the current current year
funds the Reporting purpose
(3)=(1)- end of the as of the Reporting year (8) (%)(9)=(8)/(1)
prospectus Period is
(2) Reporting end of the Period
(2) (%) (6)＝ changed
Period (4) Reporting (%) (7)＝
(4)/(1)
Period (5) (5)/(3)
Issuance
of December
convertible 14, 2021
bonds
Total / 75,171.30 74,450.87 74,450.87 73,979.71 / / 1,061.69 / 0.00
Other explanations
"□ Applicable" "√Not applicable"
(II) Details of fund-raising investment projects
"√ Applicable" "□ Not applicable"
"√ Applicable" "□ Not applicable"
Unit: RMB '0,000
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Whether
there is a
Total Proportion significant
amount of of amount Date Benefit or
Whether it is Whether change in
Total planed Amount raised invested as when the Benefit research
a committed Whether investment Reason for the
investment invested funds of the end of project achieved achievement Amount
Source of Project Project investment investment Settled progress in failure to feasibility
amount of in the invested reaches in the that has of
raised funds name nature project in project is the or not line with the keep up with of the
raised funds current as of the their current been balance
the changed Reporting planned the schedule project. If
(1) year end of the intended year realized in
prospectus Period (%) schedule so, please
Reporting use this project
(3)＝(2)/(1) provide
Period (2)
specific
details
Huzhou
Productio
Product
Issuance of n Base
ion and December Not
convertible Expansio Yes No 33,850.00 34,695.75 102.50 Yes Yes 16,139.19 64,936.45 No 0.00
constru 2024 applicable
bonds n Project
ction
(Phase
I)[Note 1]
Longwu
R&D
Researc
Issuance of Center
h and Not Not
convertible Construct Yes No 19,450.00 19,700.80 101.29 June 2024 Yes Yes No 0.00
develop applicable applicable
bonds ion
ment
Project
[Note 1]
The rapid
growth of
the
Company's
Informati
Operati business has
Issuance of on December
on led to an Not 2,131.1
convertible System Yes No 8,801.27 1,061.69 7,015.86 79.71 2025 No No No
manage increased applicable 8
bonds Upgrade [Note 2]
ment demand for
Project
a robust IT
support
platform.
Meanwhile,
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
system
debugging
and
implementat
ion
optimization
are also
required to
align with
this growth.
Supple
Replenish menting
Issuance of ment of working
Not Not
convertible working capital Yes No 12,349.60 12,567.30 101.76 Yes No 0.00
applicable applicable
bonds capital and
[Note 1] repayin
g debts
Total / / / / 74,450.87 1,061.69 73,979.71 / / / / / 16,139.19 / /
Note 1: The investment amount for the Huzhou Production Base Expansion Project (Phase I) and Longwu R&D Center Construction Project and the replenishment
of working capital as of the end of the Reporting Period exceeded the adjusted total investment amount, with the progress exceeding 100.00%. This was due to the
interest income generated from idle funds in the raised funds account.
Note 2: According to the resolutions passed at the 19th meeting of the third session of Board of Directors and the 17th meeting of the third session of Board of
Supervisors held on August 26, 2024, the Company decided to postpone the expected date for the Information System Upgrade Project to reach its intended use from
December 2024 to December 2025, in light of the current actual construction progress of the raised funds investment projects. The Company has decided to extend
the construction period of the Information System Upgrade Project for the following reason: With the rapid growth of the Company’s businesses and continuous
advancements in information technology, the Company has higher requirements for the IT support platform, including the need for iterative software and hardware
upgrades, as well as system debugging and optimization. To ensure the high-quality implementation of the investment projects and the effective use of the raised
funds, the Company, adhering to the principles of prudence and maximizing efficiency, has planned to extend the construction period of the Information System
Upgrade Project.
"□ Applicable" "√Not applicable"
(III) Change or termination of fund-raising investment during the Reporting Period
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(IV) Other uses of raised funds during the Reporting Period
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
(V) Conclusive opinions of intermediary institutions on the special verification and assurance of the
storage and use of raised funds
"□ Applicable" "√Not applicable"
Explanation of any abnormalities identified during verification
"□ Applicable" "√Not applicable"
(VI) Information on subsequent rectification in response to unauthorized changes in the use of
raised funds or improper use of such funds
"□ Applicable" "√Not applicable"
XIII. Explanations on Other Significant Matters
"□ Applicable" "√Not applicable"
Section VIShareholders and Changes in Shares
I. Changes in Share Capital
(I) Table of changes in shares
Unit: 10,000 shares
Before this change Increase or decrease (+ or -) due to this change After this change
Shares
Issuance converted
Percentage Bonus Percentage
Number of new from Others Subtotal Number
(%) shares (%)
shares capital
reserve
I. Restricted
shares
by the state
by state-
owned legal
persons
by other
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
domestic
funds
Including:
Shares held
by domestic
non-state-
owned legal
persons
Shares
held by
domestic 84.2520 0.2126 84.2520 0.2126
natural
persons
by foreign
funds
Including:
Shares held
by foreign
legal persons
Shares
held by
foreign
natural
persons
II.
Unrestricted
circulating
shares
ordinary 39,540.5035 99.7874 0.0091 0.0091 39,540.5126 99.7874
shares
funded shares
listed
domestically
funded shares
listed
overseas
III. Total
shares
"√ Applicable" "□ Not applicable"
With the approval of the CSRC’s the Reply on Approving Proya Cosmetics Co., Ltd.'s Public
Issuance of Convertible Corporate Bonds (ZJXK [2021] No. 3408), on December 8, 2021, the Company
publicly issued 7,517,130 convertible corporate bonds with a face value of RMB100 per share and a total
face value of RMB751,713,000, with a term of 6 years. With the approval of the SSE's Self-Regulatory
Supervision Decision Letter ([2021] No. 503), the convertible corporate bonds issued by the Company
amounting to RMB751,713,000 would be listed and traded on the Shanghai Stock Exchange from January
Convertible Bonds have been convertible into shares since June 14, 2022 During the Reporting Period,
RMB9,000 of Proya Convertible Bond had been converted to 91 A shares of the Company. The number
of the unrestricted circulating shares of the Company increased by 91.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
indicators from the end of the Reporting Period to the disclosure date of the interim report (if any)
"□ Applicable" "√Not applicable"
authority requires
"□ Applicable" "√Not applicable"
(II) Changes in restricted shares
"□ Applicable" "√Not applicable"
II. Shareholders
(I) Total number of shareholders:
Total number of shareholders of ordinary shares as of the
end of the Reporting Period (account)
Total number of shareholders of preference shares whose
voting rights have been restored as of the end of the 0
Reporting Period (account)
(II) Table of shareholdings of the top ten shareholders and the top ten shareholders of circulating
shares (or unrestricted shareholders) as of the end of the Reporting Period
Unit: Share
Shareholdings of the top ten shareholders (excluding securities lending and refinancing)
Number Pledged, marked
Change of shares Number of or frozen
Name of
during the held at Percentage restricted Nature of
shareholder
Reporting the end (%) shares Share shareholder
(Full name) Number
Period of the held status
period
Domestic
HOU Juncheng 0 34.51 0 None natural
person
Domestic
FANG Yuyou 0 15.05 0 natural
person
Hong Kong -
Securities Clearing 22,595,19 11.99 0 None Others
Company Limited 7
National Social
Security Fund -1,299,166 1.21 0 None Others
Portfolio 109
Agricultural Bank
of China Limited –
CSI 500 Exchange 3,523,72
Traded Open-End 3
Index Securities
Investment Fund
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Industrial and
Commercial Bank
of China Limited -
Invesco Great 3,332,00
Wall Emerging 0
Growth Hybrid
Securities
Investment Fund
Industrial and
Commercial Bank
of China Limited –
Dongfanghong 2,890,44
Ruixi Three-Year 0
Holding Period
Hybrid Securities
Investment Fund
China
Construction Bank
Co., Ltd. - CUAM 2,000,00
-600,007 0.50 0 None Others
Consumer Industry 2
Hybrid Securities
Investment Fund
Industrial and
Commercial Bank
of China Limited –
CSI Major
Consumer -108,800 0.50 0 None Others
Exchange Traded
Open-End Index
Securities
Investment Fund
Schroder
Investment
Management
(Hong Kong)
Limited - Schroder -197,200 0.50 0 None Others
International
Selection Fund
China A-share
(stock exchange)
Shareholdings of the top ten unrestricted shareholders (excluding securities lending and refinancing, and
shares reserved for executives)
Number of unrestricted circulating Type and number of shares
Name of shareholder
shares held Type Number
RMB
HOU Juncheng 136,739,037 ordinary 136,739,037
shares
RMB
FANG Yuyou 59,625,258 ordinary 59,625,258
shares
RMB
Hong Kong Securities Clearing
Company Limited
shares
RMB
National Social Security Fund
Portfolio 109
shares
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Agricultural Bank of China
RMB
Limited – CSI 500 Exchange
Traded Open-End Index
shares
Securities Investment Fund
Industrial and Commercial Bank
RMB
of China Limited - Invesco Great
Wall Emerging Growth Hybrid
shares
Securities Investment Fund
Industrial and Commercial Bank
of China Limited – RMB
Dongfanghong Ruixi Three- 2,890,440 ordinary 2,890,440
Year Holding Period Hybrid shares
Securities Investment Fund
China Construction Bank Co.,
RMB
Ltd. - CUAM Consumer
Industry Hybrid Securities
shares
Investment Fund
Industrial and Commercial Bank
of China Limited – CSI Major RMB
Consumer Exchange Traded 1,964,800 ordinary 1,964,800
Open-End Index Securities shares
Investment Fund
Schroder Investment
Management (Hong Kong) RMB
Limited - Schroder International 1,961,800 ordinary 1,961,800
Selection Fund China A-share shares
(stock exchange)
Explanation on the special As of the end of the Reporting Period, 2,210,825 shares of the Company
account for repurchase among were held in the Company's special securities account for repurchase,
the top ten shareholders representing 0.56% of the total share capital of the Company.
Explanation on the above-
mentioned shareholders'
entrusting voting rights, None
entrusted voting rights and
abstention from voting rights
Explanation on the association
FANG Yuyou is the younger brother of HOU Juncheng's spouse FANG
or concerted action among the
Aiqin, so HOU Juncheng and FANG Yuyou are associated.
shareholders mentioned above
Explanation on the shareholders
of preference shares with voting
None
rights restored and their
shareholdings
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"
Shareholdings and sales restrictions of the top ten restricted shareholders
"√ Applicable" "□ Not applicable"
Unit: Share
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Availability of restricted
shares for circulation and
trading
Number of
Number of new
Name of shareholder of Time of Sales
S/N restricted shares
restricted shares availability restrictions
shares held available
for
for
circulation
circulation
and trading
and
trading
See the
for details
Explanation on the association or
concerted action among the None
shareholders mentioned above
Note: The restricted shares held by aforesaid equity incentive objects are those granted by the
Company under the 2022 Restricted Shares Incentive Plan. The restricted period was 36 months from the
completion of their registration with CSDC Shanghai Branch (September 6, 2022).
(III) Strategic investors or general legal persons becoming the top ten shareholders through
placement of new shares
"□ Applicable" "√Not applicable"
III. Information on Directors, Supervisors and Senior Management
(I) Changes in shareholdings of current directors, supervisors, and senior management and those
who resigned during the Reporting Period
"√ Applicable" "□ Not applicable"
Unit: Share
Number of Number of Change in
shares held at shares held at shares during Cause for
Name Position
the beginning the end of the the Reporting change
of the period period Period
Shares
JIN Director, Deputy reduced for
Yanhua General Manager personal
capital need
Deputy General Shares
Manager, Board reduced for
WANG Li 236,651 177,651 59,000
Secretary, CFO personal
(resigned) capital need
Other explanations
"□ Applicable" "√Not applicable"
(II) Equity incentives granted to directors, supervisors and senior management during the
Reporting Period
"□ Applicable" "√Not applicable"
(III) Other explanations
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
IV. Changes in Controlling Shareholders and Actual Controllers
"□ Applicable" "√Not applicable"
V. Information on Preference Shares
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Section VII Information on Bonds
I. Corporate Bonds (including Enterprise Bonds) and Debt Financing Instruments of Non-
Financial Enterprises
"□ Applicable" "√Not applicable"
II. Information on Convertible Corporate Bonds
"√ Applicable" "□ Not applicable"
(I) Information on issuance of convertible bonds
With the approval of the CSRC's the Reply on Approving Proya Cosmetics Co., Ltd.'s Public Issuance
of Convertible Corporate Bonds (ZJXK [2021] No. 3408), on December 8, 2021, the Company publicly
issued 7,517,130 convertible corporate bonds with a face value of RMB100 per share and a total face
value of RMB751,713,000. These convertible corporate bonds were issued at face value with a term of 6
years.
With the approval of the SSE's Self-Regulatory Supervision Decision Letter ([2021] No. 503), the
convertible corporate bonds issued by the Company amounting to RMB751,713,000 would be listed and
traded on the Shanghai Stock Exchange from January 4, 2022, with the short name of “Proya Convertible
Bond” and the bond code of “113634”. The nominal interest rate of the convertible corporate bonds issued
this time was as follows: 0.30% in the first year, 0.50% in the second year, 1.00% in the third year, 1.50%
in the fourth year, 1.80% in the fifth year, and 2.00% in the sixth year. The duration of the convertible
corporate bonds runs from December 8, 2021 to December 7, 2027.
According to the relevant regulations and the Prospectus of Proya Cosmetics Co., Ltd. for the Public
Offering of A-Share Convertible Corporate Bonds, this “Proya Convertible Bond” issued by the Company
can be converted into the Company's shares from June 14, 2022. The conversion period is from June 14,
price is RMB96.23/share. The historical adjustments to the conversion price are as follows：
of Proya Convertible Bond has been adjusted to RMB139.37/share since May 30, 2022. For details, see
the Announcement of Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price of Convertible Bonds
due to 2021 Equity Distribution Plan (Announcement No.: 2022-029) released by the Company on the
SSE website (www.sse.com.cn) on May 24, 2022.
Incentive Plan was completed, the conversion price of the Proya Convertible Bond has been adjusted to
RMB138.92/share since September 9, 2022. For details, see the Announcement of Proya Cosmetics Co.,
Ltd. on Adjustment of Conversion Price of “Proya Convertible Bond” due to Additional Issuance from
Granting of Restricted Shares (Announcement No.: 2022-052) released by the Company on the SSE
website (www.sse.com.cn) on September 8, 2022.
of Proya Convertible Bond has been adjusted to RMB98.61/share since May 29, 2023. For details, see the
Announcement of Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price of Convertible Bonds due
to 2022 Equity Distribution Plan (Announcement No.: 2023-030) released by the Company on the SSE
website (www.sse.com.cn) on May 23, 2023.
restricted shares under the 2022 Restricted Shares Incentive Plan, the conversion price of the Proya
Convertible Bond has been adjusted to RMB98.62/share since August 29, 2023. For details, see the
Announcement of Proya Cosmetics Co., Ltd. on Completion of Repurchase and Cancellation of Some
Equity Incentive Restricted Shares and Adjustment of Conversion Price of “Proya Convertible Bond”
(Announcement No.: 2023-045) released by the Company on the SSE website (www.sse.com.cn) on
August 28, 2023.
conversion price of the Proya Convertible Bond has been adjusted to RMB98.24/share since October 23,
of Convertible Bonds due to 2023 Semi-Annual Equity Distribution Plan (Announcement No.: 2023-065)
released by the Company on the SSE website (www.sse.com.cn) on October 17, 2023.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
shares under the 2022 Restricted Shares Incentive Plan, the conversion price of the Proya Convertible
Bond has been adjusted to RMB98.25/share since December 18, 2023. For details, see the Announcement
of Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price of “Proya Convertible Bond” and
Trading Suspension for Conversion (Announcement No.: 2023-086) released by the Company on the SSE
website (www.sse.com.cn) on December 15, 2023.
of Proya Convertible Bond has been adjusted to RMB97.35/share since June 25, 2024. For details, see the
Announcement of Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price of Convertible Bonds due
to 2023 Equity Distribution Plan (Announcement No.: 2024-028) released by the Company on the SSE
website (www.sse.com.cn) on June 19, 2024.
restricted shares under the 2022 Restricted Shares Incentive Plan, the conversion price of the Proya
Convertible Bond has been adjusted to RMB97.41/share since October 28, 2024. For details, see the
Announcement of Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price of “Proya Convertible
Bond” and Trading Suspension for Conversion (Announcement No.: 2024-055) released by the Company
on the SSE website (www.sse.com.cn) on October 25, 2023.
of Proya Convertible Bond has been adjusted to RMB96.23/share since June 17, 2025. For details, see the
Announcement of Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price of Convertible Bonds due
to 2024 Equity Distribution Plan (Announcement No.: 2025-026) released by the Company on the SSE
website (www.sse.com.cn) on June 11, 2025.
restricted shares under the 2022 Restricted Shares Incentive Plan, the conversion price of the Proya
Convertible Bond has been adjusted to RMB96.26/share since August 26, 2025. For details, see the
Announcement of Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price of “Proya Convertible
Bond” and Trading Suspension for Conversion (Announcement No.: 2025-038) released by the Company
on the SSE website (www.sse.com.cn) on August 25, 2025.
(II) Information on holders and guarantors of convertible bonds during the Reporting Period
Name of the convertible corporate bond Proya Convertible Bond
Number of holders of the convertible
corporate bond at the end of the Reporting 5,956
Period
Guarantors of the convertible bond of the
None
Company
Material changes in the profitability, asset
conditions and credit conditions of the None
guarantors
The top ten holders of the convertible bond are as follows:
Number of bonds held at
Name of holders of the convertible
the end of the Reporting Holding ratio (%)
corporate bond
Period (RMB)
China Merchants Bank Co., Ltd. – Franklin
Templeton Sealand Hengrui Bond 67,139,000 8.94
Securities Investment Fund
China Merchants Bank Co., Ltd. – Bosera
CSI Convertible Bond & Exchangeable 33,046,000 4.40
Bond Index ETF
China Life Pension Hongyi Fixed-benefit
Pension Products - Industrial and 32,790,000 4.37
Commercial Bank of China Limited
China Merchants Kangtai Comprehensive
Index Fixed-Income Pension Product –
Shanghai Pudong Development Bank Co.,
Ltd.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
China Galaxy Securities Co., Ltd. 26,510,000 3.53
SDIC Securities Co., Ltd. 21,193,000 2.82
PICC Asset Management – Bank of
Communications – PICC Asset
Management Credit Enhancement No.1
Asset Management Product
China Life Pension Anxiangxinqi Mixed
Pension Products - Industrial and 19,190,000 2.56
Commercial Bank of China Limited
China Everbright Bank Co., Ltd. – China
Merchants Aberdeen Enhanced Income 18,841,000 2.51
Bond Securities Investment Fund
SWS MU Fund– Shenwan Hongyuan
Group Co., Ltd. – SWS MU – Shenhong 15,686,000 2.09
Stable No.1 Single Asset Management Plan
(III) Changes in convertible bonds during the Reporting Period
Unit: Yuan Currency: RMB
Name of the Increase or decrease due to this change
convertible Before this After this
Share
corporate change Redemption Sell-back change
conversion
bond
Proya
Convertible 750,753,000 9,000 750,744,000
Bond
(IV) Cumulative conversion of convertible bonds into shares during the Reporting Period
Name of the convertible corporate bond Proya Convertible Bond
Amount of shares converted from bonds in the
Reporting Period (RMB)
Number of shares converted from bonds in the
Reporting Period (share)
Accumulated number of shares converted from
bonds (share)
Proportion of the accumulated number of
converted shares in the total number of issued 0.0025
shares of the Company before conversion (%)
Amount of bonds not converted into shares (RMB) 750,744,000
Proportion of unconverted convertible bonds in
the total amount of convertible bonds issued (%)
(V) Historical adjustments to the conversion price
Unit: Yuan Currency: RMB
Name of the convertible
Proya Convertible Bond
corporate bond
Date of
adjustments
Adjusted Time of Media of Explanation on adjustments to the
to the
conversion price disclosure disclosure conversion price
conversion
price
SSE website, Since the 2021 Equity Distribution
Shanghai Plan was implemented by the
May 30, May 24,
RMB139.37/share Securities Company, the conversion price of
News, Proya Convertible Bond has been
Securities adjusted to RMB139.37/share since
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Times May 30, 2022. For details, see the
Announcement of Proya Cosmetics
Co., Ltd. on Adjustment of
Conversion Price of Convertible
Bonds due to 2021 Equity
Distribution Plan (Announcement
No.: 2022-029) released by the
Company on the SSE website
(www.sse.com.cn) on May 24, 2022
Since the registration of restricted
shares involved in the grant under
the 2022 Restricted Shares
Incentive Plan was completed, the
conversion price of the Proya
Convertible Bond has been adjusted
SSE website, to RMB138.92/share since
Shanghai September 9, 2022. For details, see
September September Securities the Announcement of Proya
RMB138.92/share
Securities of Conversion Price of “Proya
Times Convertible Bond” due to
Additional Issuance from Granting
of Restricted Shares
(Announcement No.: 2022-052)
released by the Company on the
SSE website (www.sse.com.cn) on
September 8, 2022.
Since the 2022 Equity Distribution
Plan was implemented by the
Company, the conversion price of
Proya Convertible Bond has been
SSE website, adjusted to RMB98.61/share since
Shanghai May 29, 2023. For details, see the
May 29, May 23, Securities Announcement of Proya Cosmetics
RMB98.61/share
Securities Conversion Price of Convertible
Times Bonds due to 2022 Equity
Distribution Plan (Announcement
No.: 2023-030) released by the
Company on the SSE website
(www.sse.com.cn) on May 23, 2023
Since the Company completed the
repurchase and cancellation of
shares under the 2022 Restricted
Shares Incentive Plan, the
SSE website, conversion price of the Proya
Shanghai Convertible Bond has been adjusted
August 29, August 28, Securities to RMB98.62/share since August
RMB98.62/share
Securities Announcement of Proya Cosmetics
Times Co., Ltd. on Completion of
Repurchase and Cancellation of
Some Equity Incentive Restricted
Shares and Adjustment of
Conversion Price of “Proya
Convertible Bond” (Announcement
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
No.: 2023-045) released by the
Company on the SSE website
(www.sse.com.cn) on August 28,
Since the 2023 Semi-Annual Equity
SSE website, Distribution Plan was implemented
Shanghai by the Company, the conversion
Securities price of the Proya Convertible Bond
News, has been adjusted to
Securities RMB98.24/share since October 23,
Times, China 2023. For details, see the
October 23, October 17, Securities Announcement of Proya Cosmetics
RMB98.24/share
Securities Conversion Price of Convertible
Daily, Bonds due to 2023 Semi-Annual
Economic Equity Distribution Plan
Information (Announcement No.: 2023-065)
Daily, China released by the Company on the
Daily SSE website (www.sse.com.cn) on
October 17, 2023
Since the Company completed the
repurchase and cancellation of
SSE website, 66,192 equity incentive restricted
Shanghai shares under the 2022 Restricted
Securities Shares Incentive Plan, the
News, conversion price of the Proya
Securities Convertible Bond has been adjusted
Times, China to RMB98.25/share since
December December Securities December 18, 2023. For details, see
RMB98.25/share
Securities Cosmetics Co., Ltd. on Adjustment
Daily, of Conversion Price of “Proya
Economic Convertible Bond” and Trading
Information Suspension for Conversion
Daily, China (Announcement No.: 2023-086)
Daily released by the Company on the
SSE website (www.sse.com.cn) on
December 15, 2023.
Since the 2023 Equity Distribution
SSE website,
Plan was implemented by the
Shanghai
Company, the conversion price of
Securities
Proya Convertible Bond has been
News,
adjusted to RMB97.35/share since
Securities
June 25, 2024. For details, see the
Times, China
Announcement of Proya Cosmetics
June 25, June 19, Securities
RMB97.35/share Co., Ltd. on Adjustment of
Conversion Price of Convertible
Securities
Bonds due to 2023 Equity
Daily,
Distribution Plan (Announcement
Economic
No.: 2024-028) released by the
Information
Company on the SSE website
Daily, China
(www.sse.com.cn) on June 19,
Daily
SSE website, Since the Company completed the
October 28, October 25, Shanghai repurchase and cancellation of
RMB97.41/share
News, shares under the 2022 Restricted
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Securities Shares Incentive Plan, the
Times, China conversion price of the Proya
Securities Convertible Bond has been adjusted
Journal, to RMB97.41/share since October
Securities 28, 2024. For details, see the
Daily, Announcement of Proya Cosmetics
Economic Co., Ltd. on Adjustment of
Information Conversion Price of “Proya
Daily, China Convertible Bond” and Trading
Daily Suspension for Conversion
(Announcement No.: 2024-055)
released by the Company on the
SSE website (www.sse.com.cn) on
October 25, 2024.
SSE website, Since the 2024 Equity Distribution
Shanghai Plan was implemented by the
Securities Company, the conversion price of
News, Proya Convertible Bond has been
Securities adjusted to RMB96.23/share since
Times, China June 17, 2025. For details, see the
Securities Announcement of Proya Cosmetics
June 17, June 11,
RMB96.23/share Journal, Co., Ltd. on Adjustment of
Securities Conversion Price of Convertible
Daily, Bonds due to 2024 Equity
Economic Distribution Plan (Announcement
Information No.: 2025-026) released by the
Daily, China Company on the SSE website
Daily (www.sse.com.cn) on June 11,
Latest conversion price as of the
RMB96.23/share
end of the Reporting Period
Note: Since the Company completed the repurchase and cancellation of 242,424 equity incentive restricted
shares under the 2022 Restricted Shares Incentive Plan, the conversion price of the Proya Convertible
Bond has been adjusted to RMB96.26/share since August 26, 2025. For details, see the Announcement of
Proya Cosmetics Co., Ltd. on Adjustment of Conversion Price of “Proya Convertible Bond” and Trading
Suspension for Conversion (Announcement No.: 2025-038) released by the Company on the SSE website
(www.sse.com.cn) on August 25, 2025.
(VI) The Company's liabilities, changes in credit and cash arrangements for debt repayment in
future years
Not applicable.
(VII) Other explanations on convertible bonds
None.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Section VIII Financial Report
I. Audit Report
"□ Applicable" "√Not applicable"
II. Financial Statements
Consolidated Balance Sheet
June 30, 2025
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB
Item Notes June 30, 2025 December 31, 2024
Current assets:
Monetary capital VII. 1 4,632,525,992.85 4,082,126,416.84
Provision for settlement
Placements with banks and
other financial institutions
Financial assets held for
trading
Derivative financial assets
Notes receivable
Accounts receivable VII. 5 424,659,711.97 517,954,587.12
Receivables financing VII. 7 1,221,062.00
Prepayments VII. 8 254,055,702.98 223,879,388.67
Premiums receivable
Reinsurance accounts
receivable
Provision for reinsurance
contract receivables
Other receivables VII. 9 113,728,869.70 9,869,822.71
Including: Interest
receivable
Dividends receivable
Financial assets purchased
under resale agreements
Inventory VII. 10 628,867,485.50 661,410,153.37
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due
within one year
Other current assets VII. 13 100,958,321.47 118,117,428.18
Total current assets 6,156,017,146.47 5,613,357,796.89
Non-current assets:
Loans and advances to
customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity
VII. 17 9,472,473.37 111,090,815.70
investments
Other equity instrument
VII. 18 71,256,995.18 71,256,995.18
investments
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Other non-current financial
assets
Investment property VII. 20 62,540,424.26 63,537,443.20
Fixed assets VII. 21 878,906,277.66 907,224,090.94
Construction in progress VII. 22 86,718,518.58 74,585,001.38
Productive biological assets
Oil and gas assets
Right-of-use assets VII. 25 21,309,400.68 14,541,665.50
Intangible assets VII. 26 421,716,056.04 429,394,857.15
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term deferred
VII. 28 133,842,067.80 70,202,612.96
expenses
Deferred income tax assets VII. 29 177,486,740.87 163,733,011.95
Other non-current assets VII. 30 263,415,009.08 11,258,403.15
Total non-current assets 2,126,663,963.52 1,916,824,897.11
Total assets 8,282,681,109.99 7,530,182,694.00
Current liabilities:
Short-term borrowings
Borrowings from the central
bank
Placements from banks and
other financial institutions
Financial liabilities held for
trading
Derivative financial
liabilities
Notes payable
Accounts payable VII. 36 1,052,738,520.01 676,388,126.18
Receipts in advance VII. 37 269,656.48 129,400.52
Contract liabilities VII. 38 199,073,153.00 153,710,588.62
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 compensation
VII. 39 106,935,889.22 155,703,420.95
payable
Taxes payable VII. 40 136,472,719.80 125,853,371.28
Other payables VII. 41 81,446,495.70 91,776,722.59
Including: Interest payable
Dividends payable
Fees and commissions
payable
Reinsurance accounts
payable
Held-for-sale liabilities
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Non-current liabilities due
VII. 43 4,807,612.33 3,473,806.48
within one year
Other current liabilities VII. 44 4,894,674.30 5,509,508.59
Total current liabilities 1,586,638,720.84 1,212,544,945.21
Non-current liabilities:
Insurance contract reserves
Long-term borrowings
Bonds payable VII. 46 797,652,424.97 780,011,293.32
Including: Preference shares
Perpetual bonds
Lease liabilities VII. 47 15,450,142.03 10,955,380.12
Long-term payables
Long-term employee
compensation payable
Estimated liabilities VII. 50 29,418,726.32 25,162,463.80
Deferred income VII. 51 17,532,982.75 15,260,760.59
Deferred income tax
VII. 29 520,375.58
liabilities
Other non-current liabilities
Total non-current
liabilities
Total liabilities 2,447,213,372.49 2,043,934,843.04
Owner's equity (or shareholders' equity):
Paid-in capital (or share
VII. 53 396,247,646.00 396,247,555.00
capital)
Other equity instruments VII. 54 50,890,934.53 50,891,546.26
Including: Preference shares
Perpetual bonds
Capital reserve VII. 55 840,426,352.63 846,600,405.28
Less: Treasury shares VII. 56 237,561,329.17 238,275,443.41
Other comprehensive
VII. 57 -84,277,085.01 -84,904,946.54
income
Special reserve
Surplus reserve VII. 59 198,411,582.50 198,411,582.50
General risk reserve
Undistributed profits VII. 60 4,562,999,809.42 4,233,103,785.98
Total owner's equity (or
shareholders' equity)
attributable to the parent
company
Minority interests 108,329,826.60 84,173,365.89
Total owner's equity (or
shareholders' equity)
Total liabilities and
owners' equity (or 8,282,681,109.99 7,530,182,694.00
shareholders' equity)
The chairman of the Company: HOU Juncheng CFO of the Company: HOU Yameng
Head of Accounting Department: MA Nan
Parent Company's Balance Sheet
June 30, 2025
Prepared by: Proya Cosmetics Co., Ltd.
Unit: Yuan Currency: RMB
Item Notes June 30, 2025 December 31, 2024
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Current assets:
Monetary capital 2,948,606,262.26 2,661,232,993.94
Financial assets held for
trading
Derivative financial assets
Notes receivable
Accounts receivable XIX. 1 697,459,206.70 885,685,804.30
Receivables financing
Prepayments 53,882,366.16 46,305,894.31
Other receivables XIX. 2 154,904,408.59 41,361,558.56
Including: Interest
receivable
Dividends receivable
Inventory 325,968,714.05 308,611,161.72
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due
within one year
Other current assets 60,923,766.77 55,091,658.88
Total current assets 4,241,744,724.53 3,998,289,071.71
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity
XIX. 3 297,873,904.44 409,703,070.22
investments
Other equity instrument
investments
Other non-current financial
assets
Investment property 91,413,151.97 92,410,170.91
Fixed assets 839,922,712.64 867,115,341.44
Construction in progress 47,636,197.35 48,890,613.02
Productive biological assets
Oil and gas assets
Right-of-use assets 8,521,596.93 10,230,842.34
Intangible assets 359,069,988.54 364,307,434.65
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term deferred
expenses
Deferred income tax assets 5,758,066.08 2,371,405.09
Other non-current assets 263,438,028.47 11,481,422.54
Total non-current assets 2,078,894,625.17 1,907,579,567.23
Total assets 6,320,639,349.70 5,905,868,638.94
Current liabilities:
Short-term borrowings
Financial liabilities held for
trading
Derivative financial
liabilities
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Notes payable
Accounts payable 641,621,847.74 353,447,048.72
Receipts in advance
Contract liabilities 61,474,019.55 49,339,586.16
Employee compensation
payable
Taxes payable 73,662,801.51 80,811,992.33
Other payables 52,083,662.05 57,498,140.16
Including: Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due
within one year
Other current liabilities 7,991,622.54 6,414,146.20
Total current liabilities 901,758,288.97 639,308,087.65
Non-current liabilities:
Long-term borrowings
Bonds payable 797,652,424.97 780,011,293.32
Including: Preference shares
Perpetual bonds
Lease liabilities 6,517,443.99 7,544,106.32
Long-term payables
Long-term employee
compensation payable
Estimated liabilities
Deferred income 17,532,982.75 15,260,760.59
Deferred income tax
liabilities
Other non-current liabilities
Total non-current
liabilities
Total liabilities 1,723,461,140.68 1,442,124,247.88
Owner's equity (or shareholders' equity):
Paid-in capital (or share
capital)
Other equity instruments 50,890,934.53 50,891,546.26
Including: Preference shares
Perpetual bonds
Capital reserve 893,799,911.41 899,973,964.06
Less: Treasury shares 237,561,329.17 238,275,443.41
Other comprehensive
-84,123,594.10 -84,123,594.10
income
Special reserve
Surplus reserve 198,411,582.50 198,411,582.50
Undistributed profits 3,379,513,057.85 3,240,618,780.75
Total owner's equity (or
shareholders' equity)
Total liabilities and
owners' equity (or 6,320,639,349.70 5,905,868,638.94
shareholders' equity)
The chairman of the Company: HOU Juncheng CFO of the Company: HOU Yameng
Head of Accounting Department: MA Nan
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Consolidated Income Statement
January to June 2025
Unit: Yuan Currency: RMB
Item Notes H1 2025 H1 2024
I. Total operating revenue VII. 61 5,361,890,476.66 5,001,465,470.72
Including: Operating revenue 5,361,890,476.66 5,001,465,470.72
Interest income
Premiums earned
Fees and commission income
II. Total operating costs 4,380,686,724.29 4,137,984,289.63
Including: Operating costs VII. 61 1,427,500,235.41 1,509,530,495.30
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 VII. 62 45,232,044.89 41,900,210.19
Sales expenses VII. 63 2,658,870,093.11 2,339,661,922.31
General and administrative
VII. 64 177,479,237.25 176,927,741.63
expenses
R&D expenses VII. 65 95,025,833.06 94,613,242.52
Financial expenses VII. 66 -23,420,719.43 -24,649,322.32
Including: Interest expenses 15,892,178.30 10,601,806.58
Interest income 31,863,929.06 37,663,413.80
Add: Other income VII. 67 56,393,553.24 66,048,236.39
Investment income (“-” for
VII. 68 -3,579,433.65 -2,153,663.74
losses)
Including: Investment income
from associates and joint ventures
Gains from
derecognition of financial assets
measured at amortized cost (“-” for
losses)
Foreign exchange gains (“-”
for losses)
Net gain on exposure hedging
(“-” for losses)
Gains on changes in fair value
(“-” for losses)
Credit impairment losses (“-”
VII. 71 -3,123,395.54 2,297,873.84
for losses)
Asset impairment losses (“-”
VII. 72 -31,433,006.97 -32,417,516.03
for losses)
Gains from disposal of assets
VII. 73 -346,504.18 -712,859.58
(“-” for losses)
III. Operating profit (“-” for losses) 999,114,965.27 896,543,251.97
Add: Non-operating revenue VII. 74 507,490.19 956,198.43
Less: Non-operating expenses VII. 75 1,125,034.38 1,430,755.68
IV. Total profit (“-” for total losses) 998,497,421.08 896,068,694.72
Less: Income tax expenses VII. 76 172,423,588.09 172,136,418.43
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
V. Net profit (“-” for net losses) 826,073,832.99 723,932,276.29
(I) Classified by operation continuity
operations (“-” for net losses)
operations (“-” for net losses)
(II) Classified by ownership
shareholders of the parent company 798,511,332.07 701,671,374.89
(“-” for net losses)
minority interests (“-” for net losses)
VI. Other comprehensive income, net
VII. 77 627,861.53 -131,551.25
of tax
(I) Other comprehensive income
attributable to owners of the parent 627,861.53 -131,551.25
company, net of tax
that cannot be reclassified into profit
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 other
equity instrument investments
(4) Changes in the fair value of the
Company's own credit risks
that will be reclassified into profit or 627,861.53 -131,551.25
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 627,861.53 -131,551.25
foreign currencies
(7) Others
(II) Other comprehensive income
attributable to minority interests, net
of tax
VII. Total comprehensive income 826,701,694.52 723,800,725.04
(I) Total comprehensive income
attributable to owners of the parent 799,139,193.60 701,539,823.64
company
(II) Total comprehensive income
attributable to minority interests
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
VIII. Earnings per share:
(I) Basic earnings per share
(RMB/share)
(II) Diluted earnings per share
(RMB/share)
For business combinations involving enterprises under common control in the current period, the net
profit realized by the combined party before the combination is RMB0.00, and the net profit realized
thereby in the prior period was RMB0.00.
The chairman of the Company: HOU Juncheng CFO of the Company: HOU Yameng
Head of Accounting Department: MA Nan
Parent Company's Income Statement
January to June 2025
Unit: Yuan Currency: RMB
Item Notes H1 2025 H1 2024
I. Operating revenue XIX. 4 2,265,766,163.84 2,475,390,588.58
Less: Operating costs XIX. 4 892,190,410.65 1,157,388,181.64
Taxes and surcharges 20,054,047.40 11,550,127.35
Sales expenses 394,796,391.27 430,271,487.56
General and administrative
expenses
R&D expenses 91,609,103.87 94,436,533.40
Financial expenses -14,339,715.19 -17,929,131.62
Including: Interest expenses 15,677,099.26 10,394,771.26
Interest income 24,839,807.39 29,144,053.33
Add: Other income 5,861,160.50 26,613,066.79
Investment income (“-” for
XIX. 5 5,239,832.73 1,838,583.82
losses)
Including: Investment income
from associates and joint ventures
Gains from
derecognition of financial assets
measured at amortized cost (“-” for
losses)
Net gain on exposure hedging
(“-” for losses)
Gains on changes in fair value
(“-” for losses)
Credit impairment losses (“-”
-19,010,005.14 -14,432,000.29
for losses)
Asset impairment losses (“-”
-783,990.24 -1,841,545.51
for losses)
Gains from disposal of assets
(“-” for losses)
II. Operating profit (“-” for losses) 715,070,038.69 655,836,595.76
Add: Non-operating revenue 86,750.33 514,727.31
Less: Non-operating expenses 378,673.00 1,270,771.69
III. Total profit (“-” for total losses) 714,778,116.02 655,080,551.38
Less: Income tax expenses 107,268,530.29 96,556,946.45
IV. Net profit (“-” for net losses) 607,509,585.73 558,523,604.93
(I) Net profit from continuing
operations (“-” for net losses)
(II) Net profit from discontinuing
operations (“-” for net losses)
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
V. Other comprehensive income, net
of tax
(I) Other comprehensive income
that cannot be reclassified into profit
and loss
measurement of defined benefit plans
that cannot be reclassified into profit
or loss under the equity method
other investments in equity
instrument
the Company's own credit risks
(II) Other comprehensive income
that will be reclassified into profit or
loss
that can be reclassified into profit or
loss under the equity method
other debt investments
reclassified into other comprehensive
income
of other debt investments
financial statements denominated in
foreign currencies
VI. Total comprehensive income 607,509,585.73 558,523,604.93
VII. Earnings per share:
(I) Basic earnings per share
(RMB/share)
(II) Diluted earnings per share
(RMB/share)
The chairman of the Company: HOU Juncheng CFO of the Company: HOU Yameng
Head of Accounting Department: MA Nan
Consolidated Cash Flow Statement
January to June 2025
Unit: Yuan Currency: RMB
Item Notes H1 2025 H1 2024
I. Cash flows from operating activities:
Cash receipts from sales of
goods and rendering of services
Net increase in customer
deposits and deposits from banks
and other financial institutions
Net increase in borrowings
from the central bank
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
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 2,201,499.78 706,235.61
Other cash receipts relating to
VII. 78 112,052,517.31 95,696,427.87
operating activities
Subtotal of cash inflows
from operating activities
Cash payments for goods
purchased and 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 employees
Taxes and fees paid 573,014,836.83 578,999,517.56
Other cash payments relating
VII. 78 2,635,056,555.79 2,180,065,616.85
to operating activities
Subtotal of cash outflows
from operating activities
Net cash flows from
operating activities
II. Cash flows from investing activities:
Cash receipts from returns on
investments
Cash receipts from
investments income
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Net cash receipts from disposal
of fixed assets, intangible assets 196,323.67 1,831,479.00
and other long-term assets
Net cash receipts from the
disposal of subsidiaries and other
operating entities
Other cash receipts relating to
VII. 78 102,075,000.00 300,000,000.00
investing activities
Subtotal of cash inflows
from investing activities
Cash payments for purchase
and construction of fixed assets,
intangible assets and other long-
term assets
Cash payments for investments 229,740,000.00
Net increase in pledged loans
Net cash payments for
acquisition of subsidiaries and
other operating entities
Other cash payments relating
to investing activities
Subtotal of cash outflows
from investing activities
Net cash flows from
-174,138,931.67 193,194,272.98
investing activities
III. Cash flows from financing activities:
Cash receipts from capital
contributions
Including: Cash receipts by
subsidiaries from minority 286,400.00 125,051.00
shareholders’ investment
Cash receipts from borrowings
Other cash receipts relating to
financing activities
Subtotal of cash inflows
from financing activities
Cash payments for debt
repayment
Cash payments for distribution
of dividends, profits or payment 472,596,233.39 352,238,406.92
of interest expenses
Including: Dividends and
profits paid by subsidiaries to 3,692,440.20
minority shareholders
Other cash payments relating
VII. 78 4,851,682.75 156,733,266.64
to financing activities
Subtotal of cash outflows
from financing activities
Net cash flows from
-477,161,516.14 -508,846,622.56
financing activities
IV. Effect of changes in foreign
exchange rates on cash and 627,861.53 -131,551.25
cash equivalents
V. Net increase in cash and
cash equivalents
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Add: Opening balance of cash
and cash equivalents
VI. Closing balance of cash and
cash equivalents
The chairman of the Company: HOU Juncheng CFO of the Company: HOU Yameng
Head of Accounting Department: MA Nan
Parent Company's Cash Flow Statement
January to June 2025
Unit: Yuan Currency: RMB
Item Notes H1 2025 H1 2024
I. Cash flows from operating activities:
Cash receipts from sales of
goods and rendering of services
Receipts of tax refunds
Other cash receipts relating to
operating activities
Subtotal of cash inflows
from operating activities
Cash payments for goods
purchased and services received
Cash payments to and on
behalf of employees
Taxes and fees paid 299,215,772.27 320,479,322.60
Other cash payments relating
to operating activities
Subtotal of cash outflows
from operating activities
Net cash flows from operating
activities
II. Cash flows from investing activities:
Cash receipts from returns on
investments
Cash receipts from
investments income
Net cash receipts from
disposal of fixed assets,
intangible assets and other long-
term assets
Net cash receipts from the
disposal of subsidiaries and
other operating entities
Other cash receipts relating to
investing activities
Subtotal of cash inflows
from investing activities
Cash payments for purchase
and construction of fixed assets,
intangible assets and other long-
term assets
Cash payments for
investments
Net cash payments for
acquisition of subsidiaries and
other operating entities
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Other cash payments relating
to investing activities
Subtotal of cash outflows
from investing activities
Net cash flows from
-205,975,037.74 214,330,731.25
investing activities
III. Cash flows from financing activities:
Cash receipts from capital
contributions
Cash receipts from
borrowings
Other cash receipts relating to
financing activities
Subtotal of cash inflows
from financing activities
Cash payments for debt
repayment
Cash payments for
distribution of dividends, profits 468,903,793.19 352,238,406.92
or payment of interest expenses
Other cash payments relating
to financing activities
Subtotal of cash outflows
from financing activities
Net cash flows from
-472,024,062.94 -507,818,796.56
financing activities
IV. Effect of changes in
foreign exchange rates on cash
and cash equivalents
V. Net increase in cash and
cash equivalents
Add: Opening balance of cash
and cash equivalents
VI. Closing balance of cash
and cash equivalents
The chairman of the Company: HOU Juncheng CFO of the Company: HOU Yameng
Head of Accounting Department: MA Nan
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Consolidated Statements of Changes in Owners' Equity
January to June 2025
Unit: Yuan Currency: RMB
H1 2025
Equity attributable to owners of the parent company
Total
Item Other equity instruments Gen Minority equity
Paid-up Other Spec
Less: eral interests attributable
capital (or Prefer Perpe Capital comprehe ial Surplus Undistribut Oth
Treasury risk Subtotal to owners
share reserve nsive reser reserve ed profits ers
ence tual Others shares reser
capital) shares bonds income ve
ve
I. Closing
balance -
of the 84,904,94
previous 6.54
year
Add:
Changes
in
accountin
g policies
Correctio
n for
previous
errors
Others
II.
Opening
balance 396,247,5 50,891,5 846,600,4 238,275,4 198,411,5 4,233,103, 5,402,074, 84,173,36 5,486,247,
of the 55.00 46.26 05.28 43.41 82.50 785.98 485.07 5.89 850.96
current
year
III.
Increase
- -
or 627,861.5 329,896,02 325,063,42 24,156,46 349,219,88
decrease 3 3.44 5.83 0.71 6.54
.65 4
in the
current
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
period
(“-” for
decrease)
(I) Total
comprehe 627,861.5 798,511,33 799,139,19 27,562,50 826,701,69
nsive 3 2.07 3.60 0.92 4.52
income
(II)
Owner's
- - -
contributi 286,400.0
on and 0
.65 38 38
capital
reduction
Ordinary
shares 286,400.0
contribut 0
ed by
owners
contributi
ons by
other
equity
instrumen
t holders
Amount
of share-
based - - -
payments 6,175,328 6,175,328. 6,175,328.
credited .26 26 26
to
owners'
equity
(III)
- - - - -
Profit
distributi
on
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Withdraw
al of
surplus
reserve
Withdraw
al of
general
risk
reserve
Distributi
on to - - - - -
owners 714,114.2 468,615,30 467,901,19 3,692,440 471,593,63
(or 4 8.63 4.39 .21 4.60
sharehold
ers)
(IV)
Internal
carry-
forward
of
owners'
equity
Transfer
of capital
reserve to
capital
(or share
capital)
Transfer
of surplus
reserve to
capital
(or share
capital)
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Surplus
reserve to
cover loss
Changes
in defined
benefit
plans
carried
forward
to
retained
earnings
comprehe
nsive
income
carried
forward
to
retained
earnings
(V)
Special
reserve
Withdraw
al for the
current
period
Utilizatio
n for the
current
period
(VI)
Others
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
IV.
Closing
balance 396,247,6 50,890,9 840,426,3 237,561,3 198,411,5 4,562,999, 5,727,137, 108,329,8 5,835,467,
for the 46.00 34.53 52.63 29.17 82.50 809.42 910.90 26.60 737.50
current
period
H1 2024
Equity attributable to owners of the parent company
Gene Total
Item Paid-up Other equity instruments Other Spec Minority equity
Less: ral interests attributable
capital (or Capital comprehe ial Surplus Undistribut Oth
Prefer Perpe Treasury risk Subtotal to owners
share reserve nsive reser reserve ed profits ers
ence tual Others shares reser
capital) shares bonds income ve
ve
I. Closing
balance -
of the 53,847,10
previous 0.91
year
Add:
Changes
in
accountin
g policies
Correctio
n for
previous
errors
Others
II.
Opening
balance 396,757,1 50,893,9 864,150,9 146,966,7 198,411,5 3,040,145, 4,349,545, 50,765,8 4,400,311,
of the 84.00 86.60 74.43 35.61 82.50 490.59 381.60 49.41 231.01
current
year
III.
Increase 889,428.8 151,692,2 343,070,24 192,134,50 22,385,9 214,520,45
or 9 95.26 6.55 0.82 52.40 3.22
decrease
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
in the
current
period
(“-” for
decrease)
(I) Total
comprehe 701,671,37 701,539,82 22,260,9 723,800,72
nsive 4.89 3.64 01.40 5.04
income
(II)
Owner's
- -
contributi 889,428.8 153,062,2 125,051.
on and 9 20.18 00
capital
reduction
Ordinary
shares 125,051.
contribute 00
d by
owners
contributi
ons by
other
equity
instrumen
t holders
Amount
of share-
based
payments 886,255.50 886,255.50
credited
to
owners'
equity
- -
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(III)
- - - -
Profit
distributi
.92 8.34 3.42 3.42
on
Withdraw
al of
surplus
reserve
Withdraw
al of
general
risk
reserve
Distributi
on to - - - -
owners 1,369,924 358,601,12 357,231,20 357,231,20
(or .92 8.34 3.42 3.42
sharehold
ers)
(IV)
Internal
carry-
forward
of
owners'
equity
Transfer
of capital
reserve to
capital
(or share
capital)
Transfer
of surplus
reserve to
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
capital
(or share
capital)
Surplus
reserve to
cover loss
Changes
in defined
benefit
plans
carried
forward
to
retained
earnings
comprehe
nsive
income
carried
forward
to
retained
earnings
(V)
Special
reserve
Withdraw
al for the
current
period
Utilizatio
n for the
current
period
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(VI)
Others
IV.
Closing
balance 396,757,4 50,892,4 865,040,4 298,659,0 198,411,5 3,383,215, 4,541,679, 73,151,8 4,614,831,
for the 15.00 27.49 03.32 30.87 82.50 737.14 882.42 01.81 684.23
current
period
The chairman of the Company: HOU Juncheng CFO of the Company: HOU Yameng Head of Accounting Department: MA Nan
Statement of Changes in Owners' Equity of the Parent Company
January to June 2025
Unit: Yuan Currency: RMB
H1 2025
Other equity instruments Total
Paid-up Other
Less: equity
Item capital (or Capital comprehen Special Surplus Undistribu
Preference Perpetual Treasury attributabl
share Others reserve sive reserve reserve ted profits
shares bonds shares e to
capital) income
owners
I. Closing balance of the 396,247,55 50,891,546. 899,973,96 238,275,44 198,411,5 3,240,618, 4,463,744,
previous year 5.00 26 4.06 3.41 82.50 780.75 391.06
Add: Changes in accounting
policies
Correction for previous
errors
Others
II. Opening balance of the 396,247,55 50,891,546. 899,973,96 238,275,44 198,411,5 3,240,618, 4,463,744,
current year 5.00 26 4.06 3.41 82.50 780.75 391.06
III. Increase or decrease in the -
- 138,894,2 133,433,81
current period (“-” for 91.00 -611.73 6,174,052.
decrease) 65
(I) Total comprehensive 607,509,5 607,509,58
income 85.73 5.73
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
- -
(II) Owner's contribution and
capital reduction
by owners
other equity instrument
holders
payments credited to owners' 6,175,328. 6,175,328.
equity 26 26
- -
(III) Profit distribution 468,615,3 467,901,19
reserve
- -
shareholders) 714,114.24
(IV) Internal carry-forward of
owners' equity
to capital (or share capital)
to capital (or share capital)
loss
plans carried forward to
retained earnings
income carried forward to
retained earnings
(V) Special reserve
period
period
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(VI) Others
IV. Closing balance for the 396,247,64 50,890,934. 893,799,91 237,561,32 198,411,5 3,379,513, 4,597,178,
current period 6.00 53 1.41 9.17 82.50 057.85 209.02
H1 2024
Other equity instruments Total
Paid-up Other
Less: equity
Item capital (or Capital comprehen Special Surplus Undistribu
Preference Perpetual Treasury attributabl
share Others reserve sive reserve reserve ted profits
shares bonds shares e to
capital) income
owners
I. Closing balance of the 396,757,18 50,893,986. 917,524,53 146,966,73 198,411,5 2,416,408, 3,779,848,
previous year 4.00 60 3.21 5.61 82.50 547.32 398.02
Add: Changes in accounting
policies
Correction for previous
errors
Others
II. Opening balance of the 396,757,18 50,893,986. 917,524,53 146,966,73 198,411,5 2,416,408, 3,779,848,
current year 4.00 60 3.21 5.61 82.50 547.32 398.02
III. Increase or decrease in
the current period (“-” for 231.00 -1,559.11 889,428.88
decrease)
(I) Total comprehensive 558,523,6 558,523,60
income 04.93 4.93
(II) Owner's contribution and 153,062,22
capital reduction 0.18
contributed by owners
other equity instrument
holders
payments credited to owners' 886,255.49 886,255.49
equity
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
- - -
(III) Profit distribution 1,369,924. 358,601,1 357,231,20
reserve
- - -
shareholders)
(IV) Internal carry-forward of
owners' equity
to capital (or share capital)
to capital (or share capital)
loss
plans carried forward to
retained earnings
income carried forward to
retained earnings
(V) Special reserve
period
period
(VI) Others
IV. Closing balance for the 396,757,41 50,892,427. 918,413,96 298,659,03 198,411,5 2,616,331, 3,828,966,
current period 5.00 49 2.09 0.87 82.50 023.91 680.12
The chairman of the Company: HOU Juncheng CFO of the Company: HOU Yameng Head of Accounting Department: MA Nan
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
III. General Information about the Company
"√ Applicable" "□ Not applicable"
Proya Cosmetics Co., Ltd. (hereinafter referred to as “Company” or the “Company”), formerly
known as Proya (Huzhou) Cosmetics Co., Ltd., was registered in Huzhou Municipal Administration for
Industry and Commerce on May 24, 2006. The Company is headquartered in Hangzhou, Zhejiang
Province. The Company currently holds a business license with unified social credit code of
RMB396,247,646.00 (an increase of RMB40.00 due to pending industrial and commercial changes related
to the conversion of convertible bonds). Among these, there are 842,520 A shares with restrictions in
circulation, and 395,405,126 A shares with no restrictions in circulation. The shares of the Company were
listed for trading on SSE on November 15, 2017.
The Company operates in the daily chemical industry, mainly engaged in cosmetics research and
development, production, and sales.
The financial statements were approved for external disclosure by the Company's fourth session of
the Board of Directors at its sixth meeting on August 25, 2025.
IV. Preparation Basis of Financial Statements
The financial statements of the Company are prepared on the going-concern basis.
"√ Applicable" "□ Not applicable"
There are no matters or situations that may substantially affect the going-concern ability of the
Company within 12 months since the end of the Reporting Period.
V. Significant Accounting Policies and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
"√ Applicable" "□ Not applicable"
Important notes: The Company has formulated specific accounting policies and estimates for
transactions or events related to impairment of financial instruments, inventories, depreciation of fixed
assets, construction in progress, intangible assets, and revenue recognition based on the actual production
and operation characteristics.
The financial statements have been prepared by the Company in compliance with the China
Accounting Standards for Business Enterprises, and give an accurate and complete view of the Company's
financial position, operating results, changes in shareholders' equity, cash flow and other related
information.
The accounting year of the Company is from January 1 to December 31 of each calendar year.
"√ Applicable" "□ Not applicable"
The operating cycle of the Company's businesses is short; the Company adopts 12 months as the
liquidity classification criteria for assets and liabilities.
The Company and our domestic subsidiaries use RMB as the functional currency, while our overseas
subsidiaries, such as Hapsode Co., Ltd., Hanna Cosmetics Co., Ltd., and OR Off&Relax choose the
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
currency of the main economic environment in which they operate as the functional currency since they
engage in overseas operations.
"√ Applicable" "□ Not applicable"
Item Importance criteria
The Company recognizes accounts receivable that
Important accounts receivable for which
individually exceed 0.3% of the total assets as
individual bad debt provision has been made
important accounts receivable.
The Company recognizes accounts receivable that
Reversal or recovery of bad debt provisions on
individually exceed 0.3% of the total assets as
important accounts receivable
important accounts receivable.
The Company recognizes accounts receivable that
Important accounts receivable actually written
individually exceed 0.3% of the total assets as
off
important accounts receivable.
Important receivables financing for which The Company recognizes receivables financing that
individual impairment provision has been individually exceed 0.3% of the total assets as
made important receivables financing.
The Company recognizes receivables financing that
Reversal or recovery of impairment provision
individually exceed 0.3% of the total assets as
for important receivables financing
important receivables financing.
The Company recognizes receivables financing that
Important receivables financing actually
individually exceed 0.3% of the total assets as
written off
important receivables financing.
The Company recognizes other receivables that
Important other receivables for which
individually exceed 0.3% of the total assets as
individual bad debt provision has been made
important other receivables.
The Company recognizes other receivables that
Reversal or recovery of bad debt provisions on
individually exceed 0.3% of the total assets as
important other receivables
important other receivables.
The Company recognizes other receivables that
Important other receivables actually written
individually exceed 0.3% of the total assets as
off
important other receivables.
The Company recognizes prepayments that
Important prepayments aged over1 year individually exceed 0.3% of the total assets as
important prepayments.
The Company recognizes construction in progress
Important construction in progress that individually exceeds 0.3% of the total assets as
important construction in progress.
The Company recognizes accounts payable that
Important accounts payable aged over1 year individually exceed 0.3% of the total assets as
important accounts payable.
The Company recognizes other payables that
Important other payables aged over1 year individually exceed 0.3% of the total assets as
important other payables.
The Company recognizes receipts in advance that
Important receipts in advance aged over 1 year
individually exceed 0.3% of the total assets as
or overdue
important receipts in advance.
The Company recognizes contract liabilities that
Important contract liabilities aged over 1 year individually exceed 0.3% of the total assets as
important contract liabilities.
The Company recognizes estimated liabilities that
Important estimated liabilities individually exceed 0.3% of the total assets as
important estimated liabilities.
The Company recognizes cash flows from investing
Important cash flows from investing activities
activities that individually exceed 5% of the total
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
assets as important cash flows from investing
activities.
The Company recognizes overseas operating entities
with absolute value of contribution to total profit that
Important overseas operating entities
exceeds 5% of the absolute value of consolidated total
profits as important overseas operating entities.
The Company recognizes subsidiaries with absolute
value of contribution to total profits that exceeds 5%
Important subsidiaries and non-wholly-owned
of the absolute value of consolidated total profits as
subsidiaries
important subsidiaries or important non-wholly-
owned subsidiaries.
The Company recognizes joint ventures, associates
and joint operations with absolute value of
Significant joint ventures, associates and joint contribution to total profits that exceeds 5% of the
operation absolute value of consolidated total profits as
important joint ventures, associates and joint
operations.
The Company recognizes commitments that have an
impact on balance sheet items exceeding 1% of total
Important commitments assets or an impact on income statement items
exceeding 5% of total profits as important
commitments.
The Company recognizes contingencies that have an
impact on balance sheet items exceeding 1% of total
Important contingencies assets or an impact on income statement items
exceeding 5% of total profits as important
contingencies.
The Company recognizes events after the balance
sheet date that have an impact on balance sheet items
Important events after the balance sheet date exceeding 1% of total assets or an impact on income
statement items exceeding 5% of total profits as
important events after the balance sheet date.
"√ Applicable" "□ Not applicable"
The assets and liabilities acquired by the Company through business combination are measured at
the book value of the combined party in the consolidated financial statements of the ultimate controlling
party at the combination date. The Company adjusts the capital reserve in accordance with the difference
between the book value share of the owner’s equity of the combined party in the consolidated financial
statements of the ultimate controlling party and the book value of the consideration paid for the business
combination or the total face value of the issued shares. If the capital reserve is not sufficient to offset the
difference, the retained earnings will be adjusted.
Where the cost of the combination exceeds the Company’s fair value share of the acquiree’s
identifiable net assets as at the acquisition date, the Company recognizes such difference as goodwill.
Where the cost of the combination is less than the Company’s fair value share of the acquiree’s identifiable
net assets, the Company shall review the measurement of the fair value of the identifiable assets, liabilities,
and contingent liabilities acquired from the acquiree, as well as the cost of combination. If, after such
review, the cost of combination still remains lower than the fair value share of the acquiree’s identifiable
net assets, the difference shall be recognized in current profit or loss.
"√ Applicable" "□ Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Control is having the power over the investee, enjoying variable returns through participating in
related activities of the investee, and having the ability to use the power over the investee to influence its
variable return amount.
(1) The parent company incorporates all subsidiaries under its control into the consolidation scope of
the consolidated financial statements. The consolidated financial statements are based on the financial
statements of the parent company and its subsidiaries, and prepared by the parent company in accordance
with the Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements.
(2) Accounting treatment of acquisition and disposal of or disposal and acquisition of equity of the
same subsidiary in two consecutive accounting years. The acquisition of the equity of the acquiree is to
control its operating and financial policies and to obtain long-term benefits from its operating activities.
When the right to control the acquiree is acquired, it is included in the consolidation scope of the
consolidated financial statements. Due to changes in the Company's business plans and arrangements, if
the equity of the acquiree is disposed of in the second fiscal year to the point of losing control over it, the
acquiree will be excluded from the consolidation scope of the consolidated financial statements when the
control is lost.
"√ Applicable" "□ Not applicable"
interest in joint operation are recognized:
(1) The solely-held assets, and jointly owned assets according to the shareholding;
(2) The solely-assumed liabilities, and jointly undertaken liabilities according to the shareholding;
(3) Income incurred from disposing of the Company's share of output under the joint operation;
(4) Income incurred from disposing of assets of joint operation according to the Company's share;
(5) The solely-incurred expenses, and expenses incurred from joint operation according to the
Company's share.
Cash presented in the cash flow statement refers to cash on hand and deposits that can be readily
withdrawn on demand. Cash equivalents refer to the short-term and highly liquid investments that are
readily convertible to known amounts of cash and subject to an insignificant risk of change in value.
"√ Applicable" "□ Not applicable"
Foreign currency transactions are translated into RMB at the approximate rate of the spot rate on the
transaction date during initial recognition. On the balance sheet date, the foreign currency monetary items
are translated based on the spot rate on the balance sheet date. The exchange difference arising from the
different exchange rate is included in current profit or loss, except the exchange difference between the
principal and interest of the foreign currency borrowed for meeting the capitalization requirements. The
foreign currency non-monetary items measured at historical cost are also translated based on the
approximate rate of the spot rate on the transaction date, and the RMB amount is not changed. The foreign
currency non-monetary items measured at fair value are translated based on the spot rate on the
determination date of the fair value, and the difference is included in current profit or loss or other
comprehensive income.
Assets and liabilities items in the balance sheet are translated at the spot rates prevailing at the balance
sheet date. Owners' equity items other than “undistributed profits” are translated at the spot rates on the
transaction dates. Income and expense items in the income statement are translated at the approximate
rates of the spot rates on the transaction dates. Any balance incurred from the translation of foreign
currency financial statements by the above method is included in other comprehensive income.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"√ Applicable" "□ Not applicable"
Financial assets are classified into the following three categories during initial recognition: (1)
financial assets measured at amortized cost; (2) financial assets measured at fair value with changes
included in other comprehensive income; (3) financial assets measured at fair value with changes included
in current profit or loss.
Financial liabilities are divided into the following four categories during initial recognition: (1)
financial liabilities measured at fair value with changes included in current profit or loss; (2) financial
liabilities arising from failure of transfer of financial assets to meet the derecognition conditions or
continued involvement in transferred financial assets; (3) financial guarantee contracts not belonging (1)
or (2) above, and loan commitments that are given at a rate lower than the market interest rate, and not in
the case described in (1) above; (4) financial liabilities measured at amortized cost.
financial liabilities
(1) Recognition basis and initial measurement method for financial assets and financial liabilities
One financial asset or financial liability is recognized when the Company becomes one party of a
financial instrument contract. The financial assets or financial liabilities are measured at the fair value
during initial recognition. For financial assets and financial liabilities measured at fair value with changes
included in current profit or loss, relevant transaction expenses are directly included in current profit or
loss; for other kinds of financial assets or financial liabilities, relevant transaction expenses are included
in the amount of initial recognition. However, where the accounts receivable initially recognized by the
Company do not contain a significant financing component or the Company does not consider the
financing component in the contract of less than one year, the initial measurement is made according to
the transaction price defined in the Accounting Standards for Business Enterprises No. 14 - Revenue.
(2) Subsequent measurement method of financial assets
Such financial assets are subsequently measured at amortized cost using the effective interest method.
The gains and losses incurred by the financial assets measured at amortized cost but not belonging to any
hedging relationship are included in current profit or loss during derecognition, reclassification and
amortization according to the effective interest method or impairment recognition.
income
The method of subsequent measurement at the fair value is adopted. The interest, impairment losses
or gains, and exchange gains and losses based on the effective interest method are included in current
profit or loss, and other gains or losses are included in other comprehensive income. During derecognition,
the accumulated gains or losses previously included in other comprehensive income are transferred from
other comprehensive income to the current profit or loss.
income
The method of subsequent measurement at the fair value is adopted. The dividends obtained (except
for the part from investment cost recovery) shall be included in current profit or loss, and other gains or
losses are included in other comprehensive income. During derecognition, the accumulated gains or losses
previously included in other comprehensive income are transferred from other comprehensive income and
included in retained earnings.
Such financial assets are subsequently measured at fair value. The generated gains or losses
(including interest and dividend income) are included in current profit or loss, unless the financial assets
belong to part of a hedging relationship.
(3) Subsequent measurement method of financial liabilities
Such financial liabilities include financial liabilities held for trading (including derivative instruments
belonging to financial liabilities) and those designated as financial liabilities measured at fair value with
changes included in current profit or loss. Such financial liabilities are subsequently measured at fair value.
The fair value changes of financial liabilities measured at fair value with change included in current profit
or loss due to an adjustment in the Company's own credit risk are included in other comprehensive income,
unless the treatment will cause or enlarge the accounting mismatch in the profit or loss. Other gains or
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
losses generated from such financial liabilities (including interest expense, except the fair value changes
arising from the credit risk adjustment of the Company) shall be included in current profit or loss, unless
the financial liabilities belong to part of the hedging relationship. During derecognition, the accumulated
gains or losses previously included in other comprehensive income are transferred from other
comprehensive income and included in retained earnings.
conditions or continued involvement in transferred financial assets, measurement shall be performed in
accordance with the Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets.
at a rate lower than the market interest rate, and not in the case described in 1) above
The subsequent measurement is made at the higher one of the following two amounts, after initial
recognition: ① loss provisions determined according to regulations on impairment of financial
instruments; ② balance of the initially recognized amount after deducting cumulative amortization
recognized in accordance with the regulations set out in the Accounting Standards for Business Enterprises
No. 14 - Revenue.
Such liabilities are measured at amortized cost using the effective interest method. The gains and
losses incurred by the financial liabilities measured at amortized cost but not belonging to any hedging
relationship are included in current profit or loss during derecognition or amortization in accordance with
the effective interest method.
(4) Derecognition of financial assets and financial liabilities
① The contract right to collect cash flow from the financial assets has been terminated;
② The financial assets have been transferred and such transfer meets the provisions for derecognition
of financial assets in the Accounting Standards for Business Enterprises No. 23 - Transfer of Financial
Assets.
financial liabilities (or that part thereof) are derecognized.
If the Company has transferred almost all the risks and rewards related to the ownership of financial
assets, the financial assets are derecognized, and the rights and obligations resulting from or retained in
the transfer are separately recognized as assets or liabilities. In case that almost all the risks and rewards
related to the ownership of the financial assets are retained, the recognition of the transferred financial
assets is continued. In the case that almost all the risks and rewards related to the ownership of the financial
assets are neither transferred nor retained, it shall be treated as follows: (1) if control over the financial
assets is not retained, the financial assets shall be derecognized, and the rights and obligations resulting
from or retained in the transfer are separately recognized as the assets or liabilities; (2) if control over the
financial assets is retained, the relevant financial assets are recognized according to the degree of continued
involvement in the transferred financial assets, and the relevant liabilities are recognized accordingly.
If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference
between the two amounts below shall be included in current profit or loss: (1) book value of the transferred
financial assets at the date of derecognition; (2) the sum of consideration received for the transfer of the
financial asset, plus the corresponding derecognized portion of accumulated change in fair value
previously included in other comprehensive income (in cases where the transferred financial asset is debt
instrument investment measured at fair value with changes included in other comprehensive income). If
part of the financial asset is transferred and the transfer satisfies the conditions for derecognition, the
overall book value before the transfer of the financial asset is allocated according to their respective
relative fair value at the transfer date between the portion of the derecognized part and the remaining part,
and the difference between the two amounts below is included in current profit or loss: (1) book value of
the derecognized part; (2) the sum of consideration for the derecognized part, plus the corresponding
derecognized part of accumulated change in fair value previously included in other comprehensive income
(in cases where the transferred financial assets are debt instrument investments measured at fair value with
changes included in other comprehensive income).
The Company adopts valuation techniques appropriate to the prevailing circumstances with the
support of sufficient data and other information available, to determine the fair value of relevant financial
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
assets and financial liabilities. The Company divides the inputs for the estimation technique into the
following levels and uses them in turn:
(1) The input of the first level is the unadjusted quotation of the same assets or liabilities that can be
obtained on the measurement date in the active market;
(2) The input of the second level is the directly or indirectly observable input of related assets or
liabilities except the input of the first level, including: the quotation of similar assets or liabilities in an
active market; the quotation of the same or similar assets or liabilities in an inactive market; other
observable inputs other than quotation, such as the interest rate and yield curves that can be observed
during the normal quotation intervals; and the inputs for market validation;
(3) The input of the third level is the unobservable input of related assets or liabilities, including
interest rates that cannot be observed directly or cannot be verified according to observable market data,
stock volatility, future cash flows of retirement obligations borne during the business combination, and
financial forecasts based on its own data.
Based on the expected credit loss, the Company carries out accounting treatment for impairment and
recognizes the loss provision for the financial assets measured at amortized cost, the debt instrument
investment measured at fair value with changes included in other comprehensive income, contract assets,
lease receivables, loan commitment other than financial liabilities measured at fair value with changes
included in current profit or loss, and the financial guarantee contracts of financial liabilities not measured
at fair value with changes included in current profit or loss or financial liabilities not from failure of
transfer of financial assets to meet the derecognition conditions or continued involvement in transferred
financial assets.
Expected credit loss refers to the weighted average of credit losses of financial instruments weighted
by the risk of default. Credit loss refers to the balance between all contractual cash flows discounted
according to the original effective interest rate and receivables under contract by the Company and all cash
flows expected to be collected, i.e. the present value of all cash shortages. In particular, the purchased or
underlying financial assets of the Company with credit impairment incurred shall be discounted according
to their effective interest rate upon credit adjustment.
For purchased or underlying financial assets with credit impairment incurred, only the accumulative
changes in the expected credit loss in the whole duration after initial recognition shall be recognized by
the Company as loss provision on the balance sheet date.
For lease receivables, receivables and contract assets from transactions in accordance with the
Accounting Standards for Business Enterprises No. 14 - Revenue, excluding significant financing
components or without consideration, by the Company, to financing components in the contract of no
more than one year, the Company measures the loss provision according to the amount equal to the
expected credit loss in the whole duration by applying the simplified measurement method.
For financial assets other than the above measurement methods, the Company shall, on each balance
sheet date, assess whether their credit risk has increased significantly since initial recognition. If the credit
risk has increased significantly since the initial recognition, the Company will measure the loss provision
based on the amount of expected credit loss in the whole duration; if the credit risk has not significantly
increased since the initial recognition, the Company will measure the loss provision based on the amount
of expected credit loss for the financial instruments in the next 12 months.
The Company determines whether the credit risk of financial instruments has increased significantly
since initial recognition by utilizing the available, reasonable and well-grounded information, including
forward-looking information, and comparing the default risks of the financial instruments on the balance
sheet date and on the initial recognition date.
If the Company determines that the financial instruments bear a low credit risk on the balance sheet
date, it assumes that the credit risk of the financial instruments has not increased significantly since initial
recognition.
The Company evaluates the expected credit risk and measures the expected credit loss based on single
financial instruments or portfolio of financial instruments. When based on the portfolio of financial
instruments, the Company divides financial instruments into different portfolios on the basis of their
common risk characteristics.
The Company re-measures the expected credit loss on each balance sheet date, and the increased or
reversed amount of the loss provision arising therefrom, as losses or gains from impairment, shall be
included in current profit or loss. For financial assets measured at amortized cost, the loss provision
deducts the book value of the financial assets listed in the balance sheet; for the debt investment measured
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
at fair value with changes included in other comprehensive income, the Company recognizes its loss
provision in other comprehensive income without deducting the book value of the financial assets.
Recognition criteria and accrual methods for expected credit losses on receivables and contract
assets:
credit risk characteristics
Basis for
Portfolio
determining the Method for measurement of expected credit loss
category
portfolio
Calculating the expected credit loss by the default risk exposure
Bank and the expected credit loss rate in the whole duration by
acceptance Note type referring to historical experience in credit loss and according to
notes receivable the current situation and the forecast on future economic
conditions
Calculating the expected credit loss by preparing a comparison
Accounts table between age of accounts receivable and expected credit loss
receivable - Account age rate in referring to historical experience in credit loss and
aging portfolio according to the current situation and the forecast on future
economic conditions
Calculating the expected credit loss by preparing a comparison
Other table between age of other receivables and expected credit loss
receivables - Account age rate in referring to historical experience in credit loss and
aging portfolio according to the current situation and the forecast on future
economic conditions
Accounts receivable Other receivables
Account age Expected credit loss rate Expected credit loss rate
(%) (%)
Within 1 year (inclusive, same for
below)
Above 3 years 100.00 100.00
The aging of accounts receivable / other receivables is calculated from the date of initial
recognition.
accrued on an individual basis
For receivables and contract assets with significantly different credit risk and credit risk portfolio, the
Company accrues expected credit losses on an individual basis.
The financial assets and financial liabilities are listed in the balance sheet respectively without
offsetting. However, when the following conditions are met, the financial assets and liabilities are
presented at the net amount after mutual offset in the balance sheet: (1) the Company has the legal right
of offsetting the recognized amount and such legal right is currently enforceable; (2) the Company plans
to settle by net amount or simultaneously realize the financial assets and clear off the financial liabilities.
When the financial assets that do not meet the derecognition conditions are transferred, the Company
does not offset the transferred financial assets with the relevant liabilities.
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"√ Applicable" "□ Not applicable"
Classification and determination basis of portfolios with bad debt provisions accrued by portfolio
of credit risk characteristics
"√ Applicable" "□ Not applicable"
Refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” of “Section VIII Financial Report” of this report for details.
Calculation of account ages of portfolios of credit risk characteristics recognized on the account
age basis
"√ Applicable" "□ Not applicable"
Refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” of “Section VIII Financial Report” of this report for details.
Criteria for judgment of provision for bad debts accrued individually
"√ Applicable" "□ Not applicable"
Refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” of “Section VIII Financial Report” of this report for details.
"√ Applicable" "□ Not applicable"
Classification and determination basis of portfolios with bad debt provisions accrued by portfolio
of credit risk characteristics
"√ Applicable" "□ Not applicable"
Refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” of “Section VIII Financial Report” of this report for details.
Calculation of account ages of portfolios of credit risk characteristics recognized on the account
age basis
"√ Applicable" "□ Not applicable"
Refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” of “Section VIII Financial Report” of this report for details.
Criteria for judgment of provision for bad debts accrued individually
"√ Applicable" "□ Not applicable"
Refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” of “Section VIII Financial Report” of this report for details.
"√ Applicable" "□ Not applicable"
Classification and determination basis of portfolios with bad debt provisions accrued by portfolio
of credit risk characteristics
"√ Applicable" "□ Not applicable"
Refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” of “Section VIII Financial Report” of this report for details.
Calculation of account ages of portfolios of credit risk characteristics recognized on the account
age basis
"√ Applicable" "□ Not applicable"
Refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” of “Section VIII Financial Report” of this report for details.
Criteria for judgment of provision for bad debts accrued individually
"√ Applicable" "□ Not applicable"
Refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” of “Section VIII Financial Report” of this report for details.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"√ Applicable" "□ Not applicable"
Inventory category, issue valuation method, inventory system, amortization of low-value
consumables and packaging materials
"√ Applicable" "□ Not applicable"
Inventories include finished goods or commodities held for sale in the ordinary course of business,
goods in process during the production, materials and supplies consumed in the course of production and
rendering of labor services.
The moving weighted average method is adopted for delivered inventories.
The Company adopts a perpetual inventory system.
(1) Low-value consumables
Amortization is performed by the immediate write-off method.
(2) Packaging materials
Amortization is performed by the immediate write-off method.
Recognition criteria and accrual methods of provision for devaluation of inventories
"√ Applicable" "□ Not applicable"
At the balance sheet date, inventories are measured at the lower of cost and net realizable value, and
provision for devaluation of inventories is made based on the difference between a cost and its net
realizable value. The net realizable value of inventories directly for sale is determined by the amount of
the estimated selling price after deducting the estimated sales expenses and relevant taxes during the
ordinary course of production and business; the net realizable value of inventories required to be processed
is determined by the amount of the estimated selling price of the finished products after deducting the
estimated cost to be incurred to completion, the estimated sales expenses and relevant taxes during the
ordinary course of production and business. On the balance sheet date, the net realizable value is
determined separately for the two parts of the same inventory with or without contract price, and is
compared with the relevant costs to separately determine the amount withdrawn or reversed for provision
for inventory depreciation.
Portfolio category and determination basis for accruing inventory depreciation reserves according
to portfolios, and determination basis for the net realizable value of different categories of
inventories
"□ Applicable" "√Not applicable"
Calculation method and determination basis for the net realizable value of each inventory age
portfolio based on the inventory age
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Recognition methods and standards of contract assets
"√ Applicable" "□ Not applicable"
The rights of the Company to collect consideration from the customer unconditionally (i.e. only
depending on time) are presented as receivables; the rights (depending on other factors than time) to collect
consideration for transferring goods to the customer are presented as contract assets.
Classification and determination basis of portfolios with bad debt provisions accrued by portfolio
of credit risk characteristics
"√ Applicable" "□ Not applicable"
Refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” of “Section VIII Financial Report” of this report for details.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Calculation of account ages of portfolios of credit risk characteristics recognized on the account
age basis
"√ Applicable" "□ Not applicable"
Refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” of “Section VIII Financial Report” of this report for details.
Criteria for judgment of provision for bad debts accrued individually
"√ Applicable" "□ Not applicable"
Refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” of “Section VIII Financial Report” of this report for details.
"□ Applicable" "√Not applicable"
Recognition criteria and accounting treatment for non-current assets classified as held for sale or
disposal groups
"□ Applicable" "√Not applicable"
Identification criteria and presentation methods for discontinued operations
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Joint control is the contractually agreed sharing of control of an arrangement. It exists only when
decisions about the relevant activities of the arrangement require the unanimous consent of the parties
sharing control. Significant influence refers to the power to participate in the decision-making process on
the financial and operating policies of the investee. It cannot control or jointly control the formulation of
such policies with other parties.
(1) For business combination under common control: where the merging party pays cash, transfers
non-cash assets, bears debts or issues equity securities as consideration of the combination, the initial
investment cost is the share with reference to the book value of the owners' equity of the combined party
in the consolidated financial statements of the ultimate controlling party on the combination date. The
difference between the initial investment cost of long-term equity investment and the book value of the
consideration paid for the combination or total face value of the issued shares is adjusted to capital reserve.
If the capital reserve is not sufficient to offset the difference, the retained earnings are adjusted.
The Company judges whether the item is a “package deal” via long-term equity investment formed
by business combination under common control through multiple transactions. For the “package deal”,
multiple deals are subject to accounting treatment as one deal with control rights having been acquired.
For items that do not belong to the “package deal”, the initial investment cost is determined on the basis
of the share with reference to the book value of the net assets of the combined party in the consolidated
financial statements of the ultimate controlling party after combination on the combination date. The
difference between initial investment cost of long-term equity investment on the combination date and the
sum of the carrying amount of long-term equity investment before combination and book value of newly
paid consideration for additional shares acquired on the combination date is to adjust capital reserve. If
the capital reserve is insufficient to offset the difference, the retained earnings are adjusted.
(2) For the business combination not under common control, the fair value of consideration paid for
combination is regarded as the initial investment cost on the acquisition date.
For the long-term equity investment achieved by the Company via business combination not under
common control through several transactions, the relevant accounting treatment is based on individual
financial statements or consolidated financial statements:
is the sum of the book value of the equity investment originally held and the newly increased investment
cost.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
the “package deal”, multiple deals are subject to accounting treatment as one deal with control rights
having been acquired. For items that do not belong to the “package deal”, the equity of the acquiree held
before the acquisition date is re-measured at the fair value of this equity on the acquisition date, and the
difference between the fair value and its book value is included in the current investment income. If the
equity of the acquiree held before the acquisition date is related to other comprehensive income under the
equity method, the other related comprehensive income is converted into the current income on the
acquisition date, excluding the other comprehensive income derived from changes of net liabilities or net
assets due to re-measurement on defined benefit plan by the investee.
(3) For cases other than business combination: if it is acquired with cash, the initial investment cost
shall be the actual payment. If it is acquired through issuing equity securities, the initial investment cost
is the fair value of the equity securities in issue. If it is acquired through debt restructuring, the initial
investment cost is determined based on the Accounting Standards for Business Enterprises No. 12 - Debt
Restructuring. If it is acquired through the exchange of non-monetary assets, the initial investment cost is
determined based on the Accounting Standards for Business Enterprises No. 7 - Exchange of Non-
monetary Assets.
For long-term equity investment controlled by the investee, the cost method is adopted for accounting.
For the long-term equity investment of associates and joint ventures, the equity method is adopted for
accounting.
investment in subsidiaries
(1) Principles for determining whether a transaction is a “package deal”
In the event of a step-by-step disposal of equity investments in subsidiaries through several
transactions until the loss of control, the Company determines whether the step-by-step transaction is a
“package deal” by taking into account the terms of the transaction agreement for each step of the step-by-
step transaction, the disposal consideration obtained, the object of the disposal, the method of disposal,
and the point of time of the disposal, among other information. The terms, conditions and economic effects
of individual transactions generally indicate that multiple transactions are a “package deal” when one or
more of the following conditions are met:
with other transactions.
(2) Accounting treatment that is not a “package deal”
For disposal of equity, the difference between the book value and the consideration actually received
is included in current profit or loss. The accounting of remaining equity is completed by the equity method
in case of significant influence on the investee or implementation of joint control with other parties.
However, in case of no control, joint control or significant influence on the investee, the accounting of
remaining equity must comply with the relevant provisions of the Accounting Standards for Business
Enterprises No.22 - Recognition and Measurement of Financial Instruments.
Before the loss of control, the difference between the disposal consideration and the subsidiary's share
of net assets entitled from the disposal of long-term equity investment cumulatively calculated from the
acquisition date or the combination date, is adjusted to capital reserve (capital premium). If the capital
premium is insufficient to offset the difference, the retained earnings are adjusted.
When control over the original subsidiary is lost, the remaining equity is re-measured at fair value as
at the date on which the control is lost. The difference between the sum of the consideration received from
equity disposal and the fair value of the remaining equity minus the share of the net assets of the original
subsidiary proportionate to the original shareholding accumulated from the date of acquisition or merger
is included in investment gains of the period during which the control is lost, and meanwhile, the goodwill
is offset. Other comprehensive income related to the equity investment in the original subsidiary is
transferred to investment gains of the period during which the control is lost.
(3) Accounting treatment belonging to “package deal”
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Accounting treatment is made by taking each transaction as one transaction disposing the subsidiary
and losing the control right. However, the difference between each disposal consideration before the
control is lost and the book value of the long-term equity investment corresponding to the disposal of
investment is recognized as other comprehensive income in the individual financial statements, and is
transferred to profit or loss of the period during which the control is lost upon loss of control.
Accounting treatment is made by taking each transaction as one transaction disposing the subsidiary
and losing the control right. However, the difference between each disposal consideration before the
control is lost and the share of net assets of said subsidiary corresponding to the disposal of investment is
recognized as other comprehensive income in the consolidated financial statements, and is transferred to
profit or loss of the period during which the control is lost upon loss of control.
(1) In case of cost measurement model:
Depreciation or amortization method
appreciation, and rental buildings.
subsequent measurement. Depreciation or amortization shall be withdrawn using the same method as that
for fixed assets and intangible assets.
(1) Conditions for recognition
"√ Applicable" "□ Not applicable"
Fixed assets are tangible assets that are held for the sake of production of goods, rendering of services,
lease or business management, with a service life of more than one accounting year. A fixed asset is
recognized when related economic benefits are likely to flow into the Company and the cost of this fixed
asset can be measured reliably.
(2) Method for depreciation
"√ Applicable" "□ Not applicable"
Useful lives of
Method for Annual
Category depreciation Residual value
depreciation depreciation rate
(year)
Houses and Straight-line
buildings method
General Straight-line
equipment method
Dedicated Straight-line
equipment method
Transportation Straight-line
vehicles method
"√ Applicable" "□ Not applicable"
economic benefits are likely to flow into the Company; and the costs of such construction in progress can
be measured reliably. Construction in progress is measured at the actual cost incurred to make the assets
ready for their intended use.
condition for service. When construction in progress has achieved serviceable conditions but final
settlement has not been finished yet, it is first transferred to fixed assets as per estimated value. After final
settlement is finished, the estimated value is adjusted based on actual cost, but the depreciated amount will
not be adjusted.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Category Standards and timings for converting construction in progress to fixed assets
Dedicated Meet the design requirements or the standards stipulated in the contract after
equipment installation and commissioning
Houses and When the physical construction has been fully completed or substantially
buildings completed and can be put into use
"√ Applicable" "□ Not applicable"
For borrowing costs incurred by the Company that are directly attributable to the acquisition and
construction or production of assets qualified for capitalization, the costs will be capitalized and included
in the costs of the related assets. Other borrowing costs shall be recognized as expenses as they are incurred
and are included in current profit or loss.
(1) Capitalization of borrowing costs begins when the following three conditions are fully satisfied:
and construction or production that are necessary to make the assets ready for the intended use or sale
have begun.
(2) Where abnormal interruption of the assets eligible for capitalization occurs during the acquisition
and construction or production process and such interruption has lasted for more than 3 consecutive
months, the capitalization of borrowing costs is suspended; the borrowing costs during the interruption are
recognized as expenses of the current period till resumption of acquisition and construction or production
of the assets.
(3) Capitalization of borrowing costs is suspended during periods in which the asset qualified for
capitalization under acquisition and construction or production is ready for the intended use or sale.
In case of special borrowing for the acquisition and construction or production of assets meeting the
capitalization conditions, the interest amount to be capitalized is recognized after deducting interest
income earned from the deposits or investment income from the temporary investment funded by the
unused borrowing balance (including recognized depreciation or amortization of premium under effective
interest method) actually incurred in the current period of specific borrowing; for general borrowing
occupied for the acquisition and construction or production of assets meeting the capitalization conditions,
the interest amount to be capitalized shall be determined by the result obtained by multiplying the
capitalization rate of occupied general borrowing with the weighted average value of the asset expenditure
for the accumulated expenditure exceeding the specific borrowing portion.
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
(1) Useful life and the basis for its determination, estimation, amortization methods or review
procedures
"√ Applicable" "□ Not applicable"
initially measured at cost.
useful life in accordance with the expected realization method of the economic benefits related to the
intangible assets. If the expected realization method cannot be reliably determined, the straight-line
method is used for amortization. The specific information is shown as below:
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Amortization
Item Useful life and basis for determination
method
Useful life determined based on property ownership registration Straight-line
Land use rights
period: 40–50 years method
Non-patented Useful life determined based on expected benefit period: 5 years Straight-line
technologies method
Office software Useful life determined based on expected benefit period: 3–10 Straight-line
years method
Straight-line
Patent right Useful life determined based on expected benefit period: 5 years
method
Customer Straight-line
Useful life determined based on expected benefit period: 3 years
resources method
Straight-line
Trademark rights Useful life determined based on legal protection period: 10 years
method
(2) Collection scope of R&D expenditures and related accounting treatment
"√ Applicable" "□ Not applicable"
(1) Labor costs
Labor costs include salaries, basic endowment insurance premiums, basic medical insurance
premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity
insurance premiums and housing provident funds of the Company's R&D personnel, as well as labor costs
of external R&D personnel.
If R&D personnel serve multiple R&D projects at the same time, the labor costs are allocated
proportionally among different R&D projects based on the working hour records of R&D personnel of
various R&D projects provided by the management department of the Company.
If the personnel directly engaged in R&D activities and external R&D personnel are also engaged in
non-R&D activities, the Company will allocate the actual labor costs between R&D expenses and
production & operation expenses by adopting reasonable methods such as the proportion of actual working
hours based on the working hour records of R&D personnel at different positions.
(2) Direct input costs
Direct input costs refer to the relevant expenses actually incurred by the Company for the
implementation of R&D activities, including: 1) costs of directly consumed materials, fuel and power; 2)
development and manufacturing expenses of molds and process equipment used for intermediate tests and
product trial production, purchase expenses of samples, prototypes and general testing means which do
not constitute fixed assets, and inspection expenses of trial production products; 3) expenses for operation,
maintenance, adjustment, inspection, testing and repair of instruments and equipment used for R&D
activities.
(3) Depreciation expenses and long-term deferred expenses
Depreciation expenses refer to the depreciation expenses of instruments, equipment and buildings in
use for R&D activities.
If the instruments, equipment and buildings in use for R&D activities are also used for non-R&D
activities, the use of such instruments, equipment and buildings in use are recorded as necessary, and the
depreciation expenses actually incurred are allocated between R&D expenses and production & operation
expenses in a reasonable way based on the actual working hours, usable area and other factors.
Long-term deferred expenses refer to the long-term deferred expenses incurred in the process of
reconstruction, modification, decoration and repair of R&D facilities, which are collected according to the
actual expenditures and amortized evenly by stages within the prescribed period.
(4) Amortization expenses of intangible assets
Amortization expenses of intangible assets refer to the amortization expenses of software, intellectual
property rights and non-patented technologies (including proprietary technology, licenses, designs and
calculation methods) used for R&D activities.
(5) Entrusted external R&D expenses
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Entrusted external R&D expenses refer to the expenses incurred by the Company in entrusting other
institutions or individuals at home and abroad to carry out R&D activities (the results of R&D activities
are owned by the Company and closely related to the Company's main operations).
(6) Others expenses
Other expenses refer to other expenses directly related to R&D activities other than the above
expenses, including costs of technical books and materials, data translation fees, expert consultation fees,
high-tech R&D insurance premiums, retrieval, demonstration, evaluation, appraisal and acceptance fees
of R&D results, intellectual property application fees, registration fees, agency fees, conference fees, travel
expenses, and communication fees.
or loss when actually incurred. Expenses incurred during the development phase of internal R&D projects
are recognized as intangible assets when all of the following conditions are satisfied: (1) it is technically
feasible to complete the intangible assets so that it will be available for use or sale; (2) there is an intention
to complete the intangible assets for use or sale; (3) the intangible assets can produce economic benefits,
including that there is evidence that the products produced using the intangible assets has a market or the
intangible assets itself has a market; if the intangible assets is for internal use, there is evidence that there
exists usage for the intangible assets; (4) there is sufficient support in terms of technology, financial
resources and other resources in order to complete the development of the intangible assets, and there is
capability to use or sell the intangible assets; (5) the expenses attributable to the development phase of the
intangible assets can be measured reliably.
"√ Applicable" "□ Not applicable"
For such long-term assets as long-term equity investment, investment property measured by the cost
model, fixed assets, construction in progress, right-of-use assets and intangible assets with limited useful
life, in case that there are signs indicating impairment on the balance sheet date, the recoverable amount
shall be estimated. Whether there is a sign of impairment or not, the goodwill acquired in the business
combination and intangible assets with indefinite useful life is tested for impairment each year. The
impairment test on goodwill is carried out in combination with its related asset group or asset group
portfolio.
In case the recoverable amount of the above long-term assets is less than its book value, the provision
for asset impairment is recognized according to its differences and included in current profit or loss.
"√ Applicable" "□ Not applicable"
The long-term deferred expenses involve all expenses already paid with amortization period of more
than 1 year (excluding 1 year). Long-term deferred expenses are recorded at the actual amount incurred
and are amortized equally over the period of benefit or over a specified period. If the long-term deferred
expenses cannot provide benefit to future accounting periods, then all of the amortized value of the
unamortized long-term deferred expenses are transferred into current profit or loss.
"√ Applicable" "□ Not applicable"
The Company recognizes the obligation to transfer goods to customers for the consideration received
or receivable from the customers as contract liabilities.
(1) Accounting treatment for short-term compensation
"√ Applicable" "□ Not applicable"
During the accounting period when employees provide service for the Company, the short-term
compensation actually incurred will be recognized as liabilities, and will be included in current profit or
loss or the costs of the related assets.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(2) Accounting treatment for post-employment benefits
"√ Applicable" "□ Not applicable"
Post-employment benefits are divided into the defined contribution plan and defined benefit plan.
(1) During the accounting period when employees provide service for the Company, the amount to
be deposited as calculated according to the defined contribution plan shall be recognized as liabilities, and
will be included in current profit or loss or the costs of the related assets.
(2) The accounting treatment for the defined benefit plan generally comprises the following steps:
variables, etc. shall be estimated through unbiased and mutually consistent actuarial assumption, so as to
measure the obligations arising from the defined benefit plan and determine the period of relevant
obligations. In addition, the obligations generated from the defined benefit plan shall be discounted, so as
to determine the present value of defined benefit plan obligations and current service cost;
of obligations of the defined benefit plan minus the fair value of the assets of defined benefit plan is
recognized as net liabilities or net assets in the defined benefit plan. When the defined benefit plan has a
surplus, the net assets of the defined benefit plan are measured at the lower of the surplus of the defined
benefit plan and the asset caps;
are recognized as three parts, i.e., service costs, net interest of the net liabilities or net assets of the defined
benefit plan, and the changes generated by re-measurement of the net liabilities or net assets of the defined
benefit plan, in which the service costs and the net interest of the net liabilities or net assets of the defined
benefit plan are included in current profit or loss or the costs of the related assets, and the changes
generated by re-measurement of the net liabilities or net assets of the defined benefit plan are included in
other comprehensive income, and cannot be reversed to profit or loss in the subsequent accounting period.
However, the amount recognized in other comprehensive income can be transferred within the equity
scope.
(3) Accounting treatment for termination benefits
"√ Applicable" "□ Not applicable"
If termination benefits are provided to employees, the employee compensation liabilities arising from
the termination benefits are recognized on the earlier date of the following and included in current profit
or loss: (1) when the Company cannot unilaterally withdraw the termination benefits provided due to
termination of labor relation plan or layoff proposal; (2) when the Company recognizes the cost or
expenses related to the restructuring involving payment of termination benefits.
(4) Accounting treatment for other long-term employees' benefits
"√ Applicable" "□ Not applicable"
Other long-term employee benefits satisfying the conditions in the defined contribution plan are
treated in accounting as stipulated in the defined contribution plan; and other long-term benefits beyond
that are treated in accounting as stipulated in the defined benefits and the changes generated from re-
measuring plan. In order to simplify related accounting treatment, the generated employee compensation
costs are recognized as the service cost. The total net amount of item composed of the net interest of net
liabilities or net assets of other long-term employee benefits and the changes generated from re-measuring
net liabilities or net assets of other long-term employee benefits is included in current profit or loss or the
costs of the related assets.
"√ Applicable" "□ Not applicable"
quality assurance and onerous contracts, become the current obligations assumed by the Company, which
are determined by the Company as estimated liabilities when their performance is very likely to result in
economic benefit outflow from the Company and their amount can be measured reliably.
be paid for performing relevant current obligations and their book value are reviewed on the balance sheet
date.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"√ Applicable" "□ Not applicable"
There are equity-settled and cash-settled share-based payments.
payment scheme
(1) Equity-settled share-based payment expenses
These equity-settled share-based payments vested immediately after the grant date and exchanged
for employee services shall be included in relevant costs or expenses as per the fair value of the equity
instruments on the grant date, and the capital reserve shall be adjusted accordingly. For equity-settled
share-based payments that are vested only after the services within the waiting period are completed or
the specified performance conditions are satisfied and that are exchanged for employee services, the
services acquired in the current period are included in relevant costs or expenses as per the fair value of
the equity instruments on the grant date based on the optimal estimate of the number of vesting equity
instruments on each balance sheet date within the waiting period, and the capital reserve is adjusted
accordingly.
The equity-settled share-based payments exchanged for services of other parties are measured as per
the fair value of the services of other parties on the date of acquisition if its reliable measurement is
possible. If the reliable measurement of the fair value of other parties' services is impossible, but that of
the equity instruments is possible, it will be measured as per the fair value of the equity instruments on the
date of acquiring the services and are included in relevant costs or expenses, and the owner's equity is
increased accordingly.
(2) Cash-settled share-based payment expenses
These cash-settled share-based payments vested immediately after the grant date and exchanged for
employee services shall be included in relevant costs or expenses as per the fair value of the liabilities
assumed by the Company on the grant date, and the liabilities shall be increased accordingly. For these
cash-settled share-based payments that are vested only after the services within the waiting period are
completed or the specified performance conditions are satisfied and that are exchanged for employee
services, the services acquired in the current period shall be included in relevant costs or expenses and
corresponding liabilities as per the fair value of the liabilities assumed by the Company based on the
optimal estimate of the vesting conditions on each balance sheet date within the waiting period.
(3) Modifying and terminating the share-based payment scheme
If the modification increases the fair value of the granted equity instruments, the Company recognizes
the increase of the acquired services according to the increase of the fair value of the equity instruments.
If the modification increases the number of the granted equity instruments, the Company recognizes the
increased fair value of the equity instruments as the increase of the acquired services accordingly. If the
Company modifies the vesting conditions in a way favorable to employees, the Company considers the
modified vesting conditions when dealing with the vesting conditions.
If the modification decreases the fair value of the granted equity instruments, the Company continues
to recognize the amount of the acquired services according to the fair value of the equity instruments on
the grant date, without taking into account the decrease of the fair value of the equity instruments. If the
modification decreases the number of the granted equity instruments, the Company treats the decreased
part as cancellation of the granted equity instruments. If the Company modifies the vesting conditions in
a way unfavorable to employees, the Company will not consider the modified vesting conditions when
dealing with the vesting conditions.
If the Company cancels or settles the granted equity instruments within the waiting period (other than
the cancellation arising from failure to meet the vesting conditions), the cancellation or settlement is
regarded as accelerated vesting treatment to immediately recognize the amount that should be recognized
within the remaining waiting period.
"√ Applicable" "□ Not applicable"
According to the relevant standards for financial instruments and Regulations on the Accounting
Treatment of Perpetual Bonds (CK [2019] No. 2), for financial instruments such as convertible corporate
bonds issued, the Company shall classify these financial instruments or their components as financial
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
assets, financial liabilities or equity instruments during initial recognition, based on the contractual terms
of the financial instruments issued and the economic substance they reflect, not only in legal form, but in
combination with the definitions of financial assets, financial liabilities or equity instruments.
On the balance sheet date, for financial instruments classified as equity instruments, the accounting
treatment for interest expense or dividend distribution as the Company's profit distribution, and for
repurchase, cancellation, etc. as changes in equity is carried out; for financial instruments classified as
financial liabilities, the accounting treatment for interest expense or dividend distribution as borrowing
costs is carried out, and the gains or losses from repurchase or redemption are included in current profit
or loss.
(1) Accounting policy applied for recognition and measurement of revenues disclosed by business
type
"√ Applicable" "□ Not applicable"
The Company shall, on the commencement date of the contract, evaluate the contract, identify the
individual performance obligations provided in the contract and determine whether to perform them within
a period or at a time point.
The performance obligations shall be deemed to be performed within a period if one of the following
conditions is satisfied, otherwise, it will be deemed to be performed at a time point: (1) the customer
acquires and consumes the economic benefits brought by the Company's performance while the Company
is performing its obligations; (2) the customer is capable to control the commodities in progress during
the Company's performance; (3) the commodities produced during the Company's performance have
irreplaceable purpose and the Company has the right to collect the amounts for the performance part
already completed to date within the whole contract term.
For the obligations performed within a period, the Company shall recognize the revenue according
to the performance progress in that period. If the performance progress cannot be determined in a
reasonable way, but the incurred costs are expected to be reimbursed, the revenue shall be recognized
according to the incurred amount of costs until the performance progress can be determined in a reasonable
way. For the obligations performed at a time point, the revenue shall be recognized at the time of the
customer's acquiring the control of related commodities or services. The Company shall take into account
the following when judging whether the customer has acquired the commodity control: (1) the Company
has the current right for collection, namely the customer has the current obligation for payment with
respect to the commodity; (2) the Company has transferred the legal title of the commodity to the customer,
namely the customer has possessed the legal title of the commodity; (3) the Company has transferred the
physical commodity to the customer, namely the customer has physical possession of the commodity; (4)
the Company has passed the main risks and return on the commodity's title to the customer, namely the
customer has acquired the same; (5) the customer has accepted the commodity; and (6) there is other
information indicating that the customer has acquired the commodity control.
(1) The Company shall measure the revenue according to the transaction price apportioned to the
individual performance obligations. The transaction price refers to the consideration amount of which the
Company is expected to have right for collection due to transfer of commodities or services to the customer,
excluding the amounts charged on behalf of the third party and expected to refund to the customer.
(2) In case of variable consideration in the contract, the Company shall determine the optimal estimate
of the variable consideration according to the expected value or the amount most likely to be incurred,
while the transaction price including the variable consideration shall not exceed the amount under the
circumstance where the accumulatively recognized revenue will be highly unlikely to suffer major reversal
when relevant uncertainties are eliminated.
(3) In case of major financing composition in the contract, the Company shall determine the
transaction price according to the payable amount assumed to be paid by the customer in cash immediately
after he acquires the control of the commodities or services. The difference between the transaction price
and the contract consideration shall be amortized by the effective interest method within the contract term.
If the Company expects, on the commencement date of the contract, that the interval between the
customer's acquisition of the control of the commodities or services and its payment is not more than one
year, the major financing composition in the contract shall not be taken into account.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(4) In case of two or more performance obligations in the contract, the Company shall, on the
commencement date of the contract, apportion the transaction price to the individual performance
obligations according to the relative proportion of the individual sales price of the commodities undertaken
as per the individual performance obligations.
(2) Different business models for similar businesses involve different revenue recognition and
measurement methods
"√ Applicable" "□ Not applicable"
The Company mainly sells cosmetics. It has different sales models classified as distribution, direct
selling and sales on commission.
(1) Distribution
The sales revenue shall be recognized after the Company delivers the products to the buyer according
to the provisions of the contract and the buyer accepts the same.
(2) Direct selling
The sales revenue shall be recognized after the Company delivers the commodities to the consumer,
and the consumer confirms receipt and makes payment.
(3) Sales on commission
The sales revenue shall be recognized after the Company delivers the products to the commissioned
party according to the provisions of the contract and the commissioned party provides the list of sales on
commission to the Company upon selling the products to others.
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Company is able to meet the conditions attached to the government grants; (2) the Company is able to
receive the government grants. In case of government grants as monetary assets, they shall be measured
as per the amount received or receivable. In case of government grants as non-monetary assets, they shall
be measured as per the fair value; in case that the fair value cannot be acquired in a reliable way, they shall
be measured as per the nominal amount.
These government grants that are used for purchasing and constructing or otherwise forming long-
term assets as specified in government documents are classified as government grants related to assets. In
case of no provision in government documents, the government grants shall be determined on the basis of
the essential condition required for obtaining the grants, and shall be considered as related to assets if the
essential condition is purchasing and constructing or otherwise forming long-term assets. The government
grants related to assets shall offset the book value of relevant assets or be recognized as deferred income.
If the government grants related to assets are recognized as deferred income, they shall be included in the
profit or loss in a reasonable and systematic way within the useful life of relevant assets. The government
grants measured as per the nominal amount shall be directly included in current profit or loss. If related
assets are sold, transferred, scrapped or damaged before the end of their useful life, the related deferred
income balance unallocated shall be transferred into the current profit or loss of assets disposal.
The government grants other than those related to assets are classified as government grants related
to income. If it is difficult to distinguish whether the government grants containing both the part related
to assets and the part related to income are related to assets or income, they shall be entirely classified as
the government grants related to income. The government grants related to income that are used for
compensation for relevant costs or losses in subsequent periods shall be recognized as deferred income,
and included in current profit or loss or offset relevant costs in the period in which relevant costs or losses
are recognized; those used for compensation for relevant costs or losses that have incurred shall be directly
included in current profit or loss or offset relevant costs.
other income or offset relevant costs according to the nature of the economic business. The government
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
grants unrelated to the daily activities of the Company shall be included in non-operating income and
expenses.
"√ Applicable" "□ Not applicable"
(if the tax basis of the items recognized not as assets and liabilities can be determined according to the
provisions of the tax law, the difference between that tax basis and their carrying amount), the deferred
income tax assets or liabilities shall be calculated and recognized according to the tax rate applicable in
the period where it is expected to recover the assets or liquidate the liabilities.
income to deduct the deductible temporary differences. If on the balance sheet date, there are conclusive
evidence proving that it is very likely to obtain sufficient taxable income in future periods to deduct the
deductible temporary differences, the deferred income tax assets not recognized yet in previous accounting
periods shall be recognized.
very likely to not obtain sufficient taxable income in future periods to deduct their benefits, the book value
of the deferred income tax assets shall be written down. When it is very likely to obtain sufficient taxable
income, the amount written down shall be reversed.
loss as the income tax expense or income, except for the income tax arising from the following
circumstances: (1) business combination; (2) transaction or matters recognized directly in the owner's
equity.
income tax assets and deferred income tax liabilities at the net amount after offset: (1) the Company has a
legal right to settle the current income tax assets and liabilities on a net basis; (2) the deferred income tax
assets and liabilities relate to income taxes levied by the same taxation authority on either the same
taxpayer, or different taxpayers. However, in the future, for each significant period of deferred income tax
assets and liabilities being reversed, the involved taxable entity intends to either settle current income tax
assets and liabilities on a net basis, or to acquire the assets and settle the liabilities simultaneously.
"√ Applicable" "□ Not applicable"
Basis of judgment and accounting treatment of the Company as the lessee for short-term leases and
low-value asset leases subject to simplified treatment
"√ Applicable" "□ Not applicable"
On the commencement date of the lease term, the Company recognizes leases with a lease term not
exceeding 12 months and no purchase option as short-term leases; leases with low value when individual
leased assets are brand-new assets are recognized as low-value asset leases. If the Company subleases or
is expected to sublease the leased assets, the original lease is not recognized as a lease of low-value assets.
For all short-term leases and low-value asset leases, the Company records the lease payments in the
cost of related assets or the current profit or loss.
Except for the above-mentioned short-term leases and low-value asset leases that adopt simplified
treatment, the Company recognizes leases as right-of-use assets and lease liabilities, on the
commencement date of the lease term.
(1) Right-of-use assets
Right-of-use assets are initially measured at cost which includes: 1) the initial measurement amount
of lease liabilities; 2) the lease payments made on or before the commencement date of the lease term,
deducting the amounts related to the lease incentive given if there is a lease incentive; 3) the initial direct
costs incurred by the lessee; 4) the estimated costs to be incurred by the lessee to dismantle and remove
leased assets, restore the site where the leased assets are located, or restore the leased assets to the condition
agreed upon in the lease terms.
The Company depreciates right-of-use assets by the straight-line method. If it can be reasonably
determined that the ownership of the leased assets will be acquired at the expiration of the lease term, the
Company shall accrue depreciation over the remaining useful life of the leased assets. If it cannot be
reasonably determined that the ownership of the leased assets can be acquired at the expiration of the lease
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
term, the Company shall accrue depreciation over the lease term or the remaining useful life of the leased
assets, whichever is shorter.
(2) Lease liabilities
On the commencement date of the lease term, the Company recognizes the present value of the
outstanding lease payments as lease liabilities. When calculating the present value of lease payments, the
interest rate implicit in the lease is used as the discount rate. If the interest rate implicit in the lease cannot
be determined, the Company's incremental borrowing rate is used as the discount rate. The difference
between the lease payment and its present value is regarded as the unrecognized financing expense, and
the interest expense is recognized in each period of the lease term according to the discount rate of the
present value of the recognized lease payment, and is included in current profit or loss. Variable lease
payments that are not included in the measurement of lease liabilities are included in current profit or loss
when actually incurred.
After the commencement date of the lease term, when there is a change in the actual amount of fixed
payment, a change in the estimated payable amount of the guaranteed residual value, a change in the index
or ratio used to determine the lease payment amount, or a change in the evaluation result or actual exercise
of the purchase option, renewal option or termination option, the Company re-measures the lease liabilities
according to the present value of the changed lease payments, and adjusts the book value of the right-of-
use assets accordingly. If the book value of the right-of-use assets has been reduced to zero, but the lease
liabilities still need to be further reduced, the remaining amount shall be included in current profit or loss.
Classification and accounting treatment of the Company as the lessor for leases
"√ Applicable" "□ Not applicable"
On the commencement date of the lease term, the Company classifies the leases that have almost all
the risks and rewards related to the ownership of the leased assets substantially transferred as financial
leases, and other leases as operating leases.
(1) Operating lease
During each period of the lease term, the Company recognizes the lease receipts as rental income by
the straight-line method, capitalizes the initial direct expenses incurred and amortizes the expenses on the
same basis as for rental income recognition, to be included in current profit or loss in installments. The
variable lease payments obtained by the Company related to operating leases but not included in the lease
receipts are included in current profit or loss when actually incurred.
(2) Financial lease
On the commencement date of the lease term, the Company recognizes the financial lease receivables
based on the net lease investment (the sum of the unguaranteed residual value and the present value of the
lease receipts that have not been received on the commencement date of the lease term discounted at the
interest rate implicit in the lease), and derecognizes financial lease assets. During each period of the lease
term, the Company calculates and recognizes interest income based on the interest rate implicit in the lease.
The variable lease payments received by the Company that are not included in the measurement of
net lease investment are included in current profit or loss when actually incurred.
"√ Applicable" "□ Not applicable"
Accounting treatment related to repurchasing the Company’s shares
If the Company’s shares are acquired due to reasons such as reducing registered capital or rewarding
employees, the actual amount paid is treated as treasury shares and recorded for future reference. Where
the repurchased shares are canceled, the difference between the total face value of the shares calculated
based on the face value and number of canceled shares and the actual amount paid for the repurchase will
be offset against the capital reserve. If the capital reserve is insufficient to be offset, the retained earnings
will be offset. Where the repurchased shares are rewarded to employees of the Company as equity-settled
share-based payments, the cost of treasury shares delivered to employees and the cumulative amount of
capital reserves (other capital reserves) during the waiting period is charged off when employees exercise
their rights to purchase shares of the Company and relevant payments are received, and the capital reserves
(share premium) are also adjusted according to the difference.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(1) Changes in significant accounting policies
"□ Applicable" "√Not applicable"
(2) Changes in significant accounting estimates
"□ Applicable" "√Not applicable"
(3) Adjustments to financial statements at the beginning of the year relating to the initial adoption
of the new accounting standards or interpretation of standards since 2025
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
VI. Taxes
Particulars on major tax types and tax rates
"√ Applicable" "□ Not applicable"
Tax type Taxing basis Tax rate
The output tax is calculated on the basis of the
income from sales of products and taxable income
from rendering of services calculated according to
Value-added tax
the provisions of the tax law. The difference 13%, 9%, 6%, 1%
(VAT)
between the output tax and the amount after
deducting the input tax which is allowed to be
deductible in the current period is the payable VAT.
Consumption tax Taxable sales (volume) 15%
In case of ad valorem taxation, it is calculated and
paid as per 1.2% of the remaining value after 30% of
the original value of the property is deducted in a
Property tax 12%, 1.2%
lump sum; in case of taxation according to lease, it
is calculated and paid as per 12% of the rental
income.
Urban maintenance
Actual turnover tax paid 7%, 5%
and construction tax
Education surcharge Actual turnover tax paid 3%
Surcharge for local
Actual turnover tax paid 2%
education
Enterprise income tax Taxable income [Note]
[Note]: Descriptions on tax payers with different enterprise income tax rates
If there are taxpayers with different enterprise income tax rates, details will be disclosed
"√ Applicable" "□ Not applicable"
Name of taxpayer Income tax rate (%)
The Company 15
Hangzhou Proya Trade Co., Ltd. 25
Anya (Huzhou) Cosmetics Co., Ltd. 25
Yueqing Laiya Trading Co., Ltd. 25
Mijing Siyu (Hangzhou) Cosmetics Co., Ltd. 25
Zhejiang Meiligu Electronic Commerce Co., Ltd. 25
Huzhou Chuangdai E-commerce Co., Ltd. 25
Hangzhou CORRECTORS Trade Co., Ltd. 25
Hapsode (Hangzhou) Cosmetics Co., Ltd. 25
Huzhou Hapsode Trading Co., Ltd. 25
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Ningbo TIMAGE Cosmetics Co., Ltd. 25
Ningbo Tangyu Trading Co., Ltd. 25
Proya (Zhejiang) Cosmetics Co., Ltd. 25
Relevant taxes are calculated and paid according
Hanna Cosmetics Co., Ltd.
to local tax regulations in South Korea
Relevant taxes are calculated and paid according
Hapsode Co., Ltd.
to local tax regulations in South Korea
Relevant taxes are calculated and paid according
Hong Kong Keshi Trading Co., Ltd.
to local tax regulations in Hong Kong, China
Relevant taxes are calculated and paid according
Hong Kong Xinghuo Industry Limited
to local tax regulations in Hong Kong, China
Hong Kong Wanyan Electronic Commerce Co., Relevant taxes are calculated and paid according
Limited to local tax regulations in Hong Kong, China
Hong Kong Zhongwen Electronic Commerce Co., Relevant taxes are calculated and paid according
Limited to local tax regulations in Hong Kong, China
Relevant taxes are calculated and paid according
Hong Kong Xuchen Trading Limited
to local tax regulations in Hong Kong, China
Boya (Hong Kong) Investment Management Co., Relevant taxes are calculated and paid according
Limited to local tax regulations in Hong Kong, China
Relevant taxes are calculated and paid according
Proya Europe SARL
to local tax regulations in Luxembourg
Relevant taxes are calculated and paid according
OR Off&Relax
to local tax regulations in Japan
Relevant taxes are calculated and paid according
PROYA PTE. LTD
to local tax regulations in Singapore
Relevant taxes are calculated and paid according
PROYA BEAUTY MALAYSIA SDH. BHD.
to local tax regulations in Malaysia
Relevant taxes are calculated and paid according
Proya EUROPE SAS
to local tax regulations in France
Tax payers other than the above 20
"√ Applicable" "□ Not applicable"
The Company passed the high-tech enterprise review on December 8, 2023 and obtained the high-
tech enterprise certificate, which is valid for 3 years. The preferential period of enterprise income tax is
from 2023 to 2025. The Company was subject to the enterprise income tax at the preferential rate of 15%
during the Reporting Period.
According to the Announcement of the Ministry of Finance and the State Taxation Administration on
the Additional Value-Added Tax Credit Policy for Advanced Manufacturing Enterprises (Announcement
No. 43 [2023] of the Ministry of Finance and the State Taxation Administration), from January 1, 2023 to
December 31, 2027, advanced manufacturing enterprises are allowed to deduct an additional 5% of the
current deductible input VAT from the VAT payable. The Company qualifies for and enjoys the policy
for advanced manufacturing enterprises.
According to the Announcement of the Ministry of Finance and the State Taxation Administration on
Further Implementing Preferential Policies of Income Tax for Micro and Small Enterprises
(Announcement No. 13 [2022] of the Ministry of Finance and the State Taxation Administration) and the
Announcement on Preferential Policies of Income Tax for Micro and Small Enterprises and Individual
Industrial and Commercial Households (Announcement No. 6 [2023] of the Ministry of Finance and the
State Taxation Administration), the subsidiaries Huzhou Niuke Technology Co., Ltd., Xuzhou Laibo
Information Technology Co., Ltd., Ningbo Jingzhe Cosmetics Co., Ltd., and Hangzhou Weiluoke
Cosmetics Co., Ltd. meet the tax standards for small low-profit enterprises. Thus, the portion of taxable
income not exceeding RMB1 million in the current period is reduced by 25% to be included in the taxable
income and the enterprise income tax is paid by such subsidiaries at the rate of 20%, and the portion of
taxable income exceeding RMB1 million but not exceeding RMB3 million in the current period is also
reduced by 25% to be included in the taxable income and the enterprise income tax is also paid by such
subsidiaries at the rate of 20%.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
According to the Announcement on Further Implementing the “Six Taxes and Two Fees” Reduction
and Exemption Policies for Micro and Small Enterprises (Announcement No. 10 [2022] of the Ministry
of Finance and the State Taxation Administration), the subsidiaries Huzhou UZERO Trading Co., Ltd.,
Hangzhou Proya Commercial Management Co., Ltd., and Hangzhou TIMAGE Cosmetics Co., Ltd.,
Ningbo Jingzhe Cosmetics Co., Ltd., and Hangzhou Oumisi Trading Co., Ltd. meet the tax standards for
small and low-profit enterprises or small-scale VAT taxpayers. Thus, urban maintenance and construction
tax, property tax, urban land use tax, stamp tax (excluding securities trading stamp tax), farmland
occupation tax, education surcharges, or surcharges for local education shall be subject to the reduced tax
rate of 50% or less.
According to the Announcement on Exempting Small-Scale Value-Added Tax Taxpayers from Value-
Added Tax (Announcement No. 19 [2023] of the Ministry of Finance and the State Taxation
Administration), the subsidiaries Hangzhou Luxiaotie Fitness Co., Ltd. meet the tax conditions of small-
scale VAT taxpayers. Thus, small-scale VAT taxpayers are exempted from VAT if their monthly sales are
less than RMB100,000 (inclusive), and taxable sales income subject to a 3% levy rate is reduced by 1%
levy rate to levy VAT.
According to the Circular of the Ministry of Finance, and the State Taxation Administration on the
Taxation Policy for Cross-border E-commerce Retail Exports (CS 〔2013〕 No. 96), the subsidiaries
Hangzhou TIMAGE Cosmetics Co., Ltd. and Hangzhou Oumisi Trading Co., Ltd. meet the policy
conditions for VAT and consumption tax refund (exemption) on export goods for e-commerce exporters,
and are eligible to enjoy VAT and consumption tax refund (exemption).
"□ Applicable" "√Not applicable"
VII. Notes to the Items in Consolidated Financial Statements
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Cash on hand 8,307.93 9,229.11
Cash at bank 4,552,887,381.90 4,017,352,725.93
Other monetary capital 79,630,303.02 64,764,461.80
Deposits with finance
companies
Total 4,632,525,992.85 4,082,126,416.84
Of which: Total cash
deposited outside 157,412,710.37 118,098,472.97
China
Other explanations
As of the end of the Reporting Period, restricted funds included: Large-denomination certificates of
deposit: RMB1,240,357,805.54; Judicially frozen funds: RMB3,416,733.86; Time deposit margin for
transformer: RMB250,000.00; ETC deposit classified under other monetary capital: RMB70,000.00;
Deposit for directly-operated store: RMB3,205,013.45.
At the beginning of the period, restricted funds included: Large-denomination certificates of deposit:
RMB1,327,741,986.16; Judicially frozen funds: RMB3,416,733.86; Time deposit margin for transformer:
RMB250,000.00; and ETC deposit classified under other monetary capital: RMB70,000.00; Pinduoduo
deposit: RMB5,298,890.00; Deposit for directly-operated store: RMB2,779,122.20.
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(1) Presentation of notes receivable by category
"□ Applicable" "√Not applicable"
(2) Notes receivable pledged by the Company at the end of the period
"□ Applicable" "√Not applicable"
(3) Notes receivable endorsed or discounted by the Company at the end of the period and not yet
due on the balance sheet date
"□ Applicable" "√Not applicable"
(4) Disclosed by classification of bad debt provisions
"□ Applicable" "√Not applicable"
Provision for bad debts accrued individually:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued by portfolio:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued according to the general model of expected credit loss
"□ Applicable" "√Not applicable"
Classification basis and provision ratio of provision for bad debts for each stage
None
Explanation on significant changes in book balance of notes receivable with changes in provision for loss
in the current period:
"□ Applicable" "√Not applicable"
(5) Information on provision for bad debts
"□ Applicable" "√Not applicable"
Among them, significant amount of bad debt provision withdrawn or written back in the current period:
"□ Applicable" "√Not applicable"
Other explanations:
None
(6) Information on notes receivable actually written off in the current period
"□ Applicable" "√Not applicable"
Wherein, information on write-off of important notes receivable:
"□ Applicable" "√Not applicable"
Explanation on the write-off of notes receivable:
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(1) Disclosed by account age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Account age Closing book balance Opening book balance
Within 1 year (inclusive) 446,642,941.50 544,412,381.63
Including: Within 1 year 446,642,941.50 544,412,381.63
Above 3 years 9,745,044.13 9,459,313.78
Above 5 years
Total 456,937,394.44 555,275,062.30
(1) Disclosed by classification of bad debt provisions
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision for bad Provision for bad
Category Book balance Book balance
debts Book debts Book
Percentage Provision value Percentage Provision value
Amount Amount Amount Amount
(%) ratio (%) (%) ratio (%)
Provision
for bad
debts 1.29 100.00 1.02 100.00
accrued
individually
Including:
Provision
for bad
debts 1.29 100.00 1.02 100.00
accrued
individually
Provision
for bad
debts 98.71 5.85 98.98 5.76
accrued by
portfolio
Including:
Aging 451,061,89 26,402,1 424,659, 549,593,7 31,639,16 517,954,
portfolio 4.02 82.05 711.97 55.67 8.55 587.12
Total / / / /
Provision for bad debts accrued individually:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing balance
Item Provision for Provision ratio Reason for
Book balance
bad debts (%) provision
Provision for bad
Expected to be
debts accrued 5,875,500.42 5,875,500.42 100.00
unrecoverable
individually
Total 5,875,500.42 5,875,500.42 100.00 /
Explanation on provision for bad debts by item:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Provision for bad debts accrued by portfolio:
"√ Applicable" "□ Not applicable"
Provision by portfolio: aging portfolio
Unit: Yuan Currency: RMB
Closing balance
Item
Book balance Provision for bad debts Provision ratio (%)
Within 1 year 446,642,941.50 22,332,147.11 5.00
Above 3 years 3,869,543.71 3,869,543.71 100.00
Total 451,061,894.02 26,402,182.05 5.85
Explanation on provision for bad debts accrued by portfolio:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued according to the general model of expected credit loss
"□ Applicable" "√Not applicable"
Classification basis and provision ratio of provision for bad debts for each stage
None
Explanation on significant changes in book balance of accounts receivable with changes in provision for
loss in the current period:
"□ Applicable" "√Not applicable"
(2) Information on provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount of changes in the current period
Opening Withdrawal Charge- Closing
Category Other
balance Provision or write- off or balance
changes
back write-off
Provision
for bad
debts 5,681,306.63 194,193.79 5,875,500.42
accrued
individually
Provision
for bad
debts 31,639,168.55 1,222,686.55 26,402,182.05
accrued by
portfolio
Total 37,320,475.18 1,222,686.55 32,277,682.47
[Note] Other changes during the current period refer to the disposal of the 100% equity interest in
Zhejiang Beauty Cosmetics Co., Ltd., resulting in a decrease of RMB1,222,686.55 in the provision for
bad debts on accounts receivable.
Among them, significant amount of bad debt provision withdrawn or written back in the current period:
"□ Applicable" "√Not applicable"
Other explanations:
None
(3) Information on accounts receivable actually written off in the current period
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Among them, information on accounts receivable significantly written off
"□ Applicable" "√Not applicable"
Explanation on the write-off of the accounts receivable:
"□ Applicable" "√Not applicable"
(4) Information on accounts receivable and contract assets of the top five closing balances collected
by debtor
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Proportion
of total
Closing
Closing balance closing
Closing balance balance Closing balance
Company of accounts balance of
of accounts of of provision for
name receivable and accounts
receivable contract bad debts
contract assets receivable
assets
and contract
assets (%)
Beijing
Jingdong
Century 377,518,697.07 377,518,697.07 82.62 18,875,934.85
Trading Co.,
Ltd.
Vipshop
(China) Co., 29,020,781.76 29,020,781.76 6.35 1,451,039.08
Ltd.
Zhejiang
Haochao
Network 12,550,002.05 12,550,002.05 2.75 627,500.10
Technology
Co., Ltd.
Chongqing
Pinwei E-
Commerce
Co., Ltd.
Fujian Sanfu
Apparel Co., 3,246,334.30 3,246,334.30 0.71 162,316.72
Ltd.
Total 429,350,272.71 429,350,272.71 93.97 21,467,513.63
Other explanations
None
Other explanations:
"□ Applicable" "√Not applicable"
(1) Information on contract assets
"□ Applicable" "√Not applicable"
(2) Significant changes in book value during the Reporting Period and the reasons thereof
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(3) Disclosed by classification of bad debt provisions
"□ Applicable" "√Not applicable"
Provision for bad debts accrued individually:
"□ Applicable" "√Not applicable"
Explanation on provision for bad debts by item:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued by portfolio:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued according to the general model of expected credit loss
"□ Applicable" "√Not applicable"
Classification basis and provision ratio of provision for bad debts for each stage
None
Explanation on significant changes in book balance of contract assets with changes in provision for loss
in the current period:
"□ Applicable" "√Not applicable"
(4) Information on provision for bad debts of contract assets accrued in the current period
"□ Applicable" "√Not applicable"
Among them, significant amount of bad debt provision withdrawn or written back in the current period:
"□ Applicable" "√Not applicable"
Other explanations:
None
(5) Information on contract assets actually written off in the current period
"□ Applicable" "√Not applicable"
Wherein, information on write-off of important contract assets:
"□ Applicable" "√Not applicable"
Explanation on write-off of contract assets:
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
(1) Presentation of receivables financing by category
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Bank acceptance bills 1,221,062.00
Total 1,221,062.00
(2) Receivables financing pledged by the Company at the end of the period
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(3) Receivables financing endorsed or discounted by the Company at the end of the period and not
yet due on the balance sheet date
"□ Applicable" "√Not applicable"
(4) Disclosed by classification of bad debt provisions
"□ Applicable" "√Not applicable"
Provision for bad debts accrued individually:
"□ Applicable" "√Not applicable"
Explanation on provision for bad debts by item:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued by portfolio:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued according to the general model of expected credit loss
"□ Applicable" "√Not applicable"
Classification basis and provision ratio of provision for bad debts for each stage
None
Explanation on significant changes in book balance of receivables financing with changes in provision for
loss in the current period:
"□ Applicable" "√Not applicable"
(5) Information on provision for bad debts
"□ Applicable" "√Not applicable"
Among them, significant amount of bad debt provision withdrawn or written back in the current period:
"□ Applicable" "√Not applicable"
Other explanations:
None
(6) Information on receivables financing actually written off in the current period
"□ Applicable" "√Not applicable"
Wherein, write-off of important receivables financing:
"□ Applicable" "√Not applicable"
Explanation on write-off:
"□ Applicable" "√Not applicable"
(7) Information on changes in the current period of receivables financing and changes in fair value:
"□ Applicable" "√Not applicable"
(8) Other explanations:
"□ Applicable" "√Not applicable"
(1) Presentation of prepayments by account age
"√ Applicable" "□ Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Unit: Yuan Currency: RMB
Closing balance Opening balance
Account age
Amount Percentage (%) Amount Percentage (%)
Within 1 year 248,231,921.00 97.71 221,486,974.88 98.93
Above 3 years 352,332.50 0.14 90,076.37 0.04
Total 254,055,702.98 100.00 223,879,388.67 100.00
Explanation on reasons why prepayments aged over one year and a significant amount are not settled in
time:
None
(2) Information on prepayments of the top five closing balances collected by prepaid objects
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Percentage of the total
Company name Closing balance closing balance of
prepayments (%)
Shanghai Vision Star Co., Ltd. 36,090,714.87 14.21
Hangzhou Alimama Software Service Co., Ltd.
[Note 1]
Guangxi Jingdong Qingchuan E-commerce Co.,
Ltd. [Note 2]
Wuhan Juliang Xingtu Technology Co., Ltd.
[Note 3]
Shanghai Yixin Culture Media Co., Ltd. 11,759,054.41 4.63
Total 124,806,951.55 49.14
Other explanations:
[Note 1] Consolidated statistics of companies under common control, including Hangzhou Alimama
Software Service Co., Ltd. And Zhejiang Alibaba Communication Technology Co., Ltd.
[Note 2] Consolidated statistics of companies under common control, including Guangxi Jingdong
Qingchuan E-commerce Co., Ltd. and Chongqing Jingdong Haijia E-commerce Co., Ltd.
[Note 3] Consolidated statistics of companies under common control, including Hubei Juliang Engine
Technology Co., Ltd. and Wuhan Juliang Xingtu Technology Co., Ltd.
Other explanations
"□ Applicable" "√Not applicable"
Presentation by item
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 113,728,869.70 9,869,822.71
Total 113,728,869.70 9,869,822.71
Other explanations:
"□ Applicable" "√Not applicable"
Interest receivable
(1) Classification of interest receivable
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(2) Significant overdue interest
"□ Applicable" "√Not applicable"
(3) Disclosed by classification of bad debt provisions
"□ Applicable" "√Not applicable"
Provision for bad debts accrued individually:
"□ Applicable" "√Not applicable"
Explanation on provision for bad debts by item:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued by portfolio:
"□ Applicable" "√Not applicable"
(4) Provision for bad debts accrued according to the general model of expected credit loss
"□ Applicable" "√Not applicable"
(5) Information on provision for bad debts
"□ Applicable" "√Not applicable"
Among them, significant amount of bad debt provision withdrawn or written back in the current period:
"□ Applicable" "√Not applicable"
Other explanations:
None
(6) Information on interest receivable actually written off in the current period
"□ Applicable" "√Not applicable"
Among them, information on interest receivable significantly written off
"□ Applicable" "√Not applicable"
Explanation on write-off:
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
Dividends receivable
(7) Dividends receivable
"□ Applicable" "√Not applicable"
(8) Important dividends receivable aged over one year
"□ Applicable" "√Not applicable"
(9) Disclosed by classification of bad debt provisions
"□ Applicable" "√Not applicable"
Provision for bad debts accrued individually:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Explanation on provision for bad debts by item:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued by portfolio:
"□ Applicable" "√Not applicable"
(10) Provision for bad debts accrued according to the general model of expected credit loss
"□ Applicable" "√Not applicable"
(11) Information on provision for bad debts
"□ Applicable" "√Not applicable"
Among them, significant amount of bad debt provision withdrawn or written back in the current period:
"□ Applicable" "√Not applicable"
Other explanations:
None
(12) Dividends receivable actually written off in the current period
"□ Applicable" "√Not applicable"
Among them, information on dividends receivable significantly written off
"□ Applicable" "√Not applicable"
Explanation on write-off:
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
Other receivables
(13) Disclosed by account age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Account age Closing book balance Opening book balance
Within 1 year (inclusive) 118,700,268.61 8,169,679.79
Including: Within 1 year 118,700,268.61 8,169,679.79
Above 3 years 31,642,913.55 31,600,762.86
Above 5 years
Total 153,658,828.78 42,884,889.66
(14) Information on classification by nature of payment
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Nature of payment Closing book balance Opening book balance
Equity transfer payment 107,840,000.00
Suspense payment receivables 32,255,641.69 26,993,854.60
Security deposits 11,950,671.19 14,015,875.84
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Reserve funds 706,613.21 119,490.16
Others 905,902.69 1,755,669.06
Total 153,658,828.78 42,884,889.66
(15) Information on provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
First stage Second stage Third stage
Expected credit Expected credit
Provision for bad Expected credit loss for the entire loss for the entire
Total
debts losses over the duration (credit duration (credit
next 12 months impairment not impairment
occurred) occurred)
Balance as of
January 1, 2025
Balance as of
January 1, 2025
in the current
period
– Transferred into
-142,857.53 142,857.53
the second stage
– Transferred into
-21,075.35 21,075.35
the third stage
– Transferred
back to the
second stage
– Transferred
back to the first
stage
Amount accrued
in the current 5,611,383.96 137,505.63 1,194,612.11 6,943,501.70
period
Amount written-
back in the
current period
Amount charged-
off in the current
period
Amount written-
off in the current 8,609.57 20,000.00 28,609.57
period
Other changes
Balance as of
June 30, 2025
Classification basis and provision ratio of provision for bad debts for each stage
None
Explanation on significant changes in book balance of other receivables with changes in provision for loss
in the current period:
"□ Applicable" "√Not applicable"
The amount of provision for bad debts in the current period and the basis for evaluating whether the
credit risk of financial instruments increases significantly:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(16) Information on provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount of changes in the current period
Opening Withdrawal Charge- Closing
Category Other
balance Provision or write- off or balance
changes
back write-off
Provision for
bad debts
accrued
individually
Provision for
bad debts
accrued by
portfolio
Total 33,015,066.95 6,943,501.70 28,609.57 39,929,959.08
Among them, significant amount of bad-debt provision written back or withdrawn in the current period:
"□ Applicable" "√Not applicable"
Other explanations
None
(17) Information on other receivables actually written-off in the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Written off amount
Other receivables actually written off 28,609.57
Among them, information on write-off of other important receivables:
"□ Applicable" "√Not applicable"
Explanation on write-off of other receivables:
"□ Applicable" "√Not applicable"
(18) Information on other receivables of the top five closing balances collected by debtor
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
As a proportion of
Closing balance
Closing total closing Nature of
Company name Account age of provision for
balance balance in other payment
bad debts
receivables (%)
Zhejiang Dadao Equity
Within 1
Qiyun Group 99,990,000.00 65.07 transfer 4,999,500.00
year
Co., Ltd. payment
EURL Suspense
Above 3
PHARMATICA 18,397,282.14 11.97 payment 18,397,282.14
years
receivables
SIKEROM Suspense
Above 3
EURPOE 8,590,109.62 5.59 payment 8,590,109.62
years
GMBH receivables
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Meilie
(Hangzhou) Equity
Within 1
Network 7,457,500.00 4.85 transfer 372,875.00
year
Technology payment
Co., Ltd.
Hangzhou
Property
Service and
Security Above 3
Maintenance 4,708,614.72 3.06 4,708,614.72
deposits years
Fund
Management
Center
Total 139,143,506.48 90.54 / / 37,068,381.48
(19) Presented as other receivables due to centralized fund management
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
(1) Classification of inventories
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision for Provision for
devaluation of devaluation of
Item inventories/Impairm inventories/Impairm
Book balance Book value Book balance Book value
ent provision of ent provision of
contract contract
performance cost performance cost
Raw 40,250,150.0 36,692,243.8 45,032,279.0 41,843,470.3
materials 2 5 0 1
Packaging 26,081,188.5 22,749,335.6 36,170,512.8 33,701,945.1
materials 0 1 7 1
Goods in 26,021,035.5 23,508,363.6 17,373,287.0 16,560,488.7
process 1 3 9 2
Outsourcin 20,276,710.4 18,554,820.5 16,841,778.8 16,016,142.6
g gifts 8 7 8 7
Inventory
commoditi 60,728,849.70 72,818,643.02
es
Low-value
consumabl 590,579.84 398,207.24 9,962,009.73
es
Total 701,311,235. 628,867,485. 741,922,814. 661,410,153.
(2) Data resources recognized as inventory
"□ Applicable" "√Not applicable"
(3) Provision for devaluation of inventories and impairment provision of contract performance
cost
"√ Applicable" "□ Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Unit: Yuan Currency: RMB
Increased amount in the Decreased amount in the
Opening current period current period Closing
Item
balance Write-back or balance
Provision Others Others
charge-off
Raw
materials
Packaging
materials
Goods in
process
Outsourcing
gifts
Inventory
commodities
Low-value
consumables
Total 80,512,661.29 31,433,006.97 38,308,749.06 1,193,168.81 72,443,750.39
[Note] Other decreases during the current period refer to the disposal of the 100% equity interest in
Zhejiang Beauty Cosmetics Co., Ltd., resulting in a reduction of RMB1,193,168.81 in provision for
devaluation of inventories.
Reasons for the reversal or write-off of provision for devaluation of inventories
"√ Applicable" "□ Not applicable"
At the end of the current period, the net realizable value of some products was lower than their
corresponding cost, so the provision for devaluation of inventories was accrued based on the difference
between the cost and the net realizable value; In the current period, the Company consumed, sold or
scrapped some of the inventories of which the Company had already accrued provisions for devaluation,
so the provisions for devaluation was charged off in the current period.
Provision for devaluation of inventories accrued by portfolio
"□ Applicable" "√Not applicable"
Accrual standards for provision for devaluation of inventories accrued by portfolio
"□ Applicable" "√Not applicable"
(4) Capitalized amount of borrowing costs included in closing balance of inventories and its
calculation standard and basis
"□ Applicable" "√Not applicable"
(5) Explanation on current amortization amount of contract performance cost
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
Debt investments due within one year
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Other debt investments due within one year
"□ Applicable" "√Not applicable"
Other explanations on non-current assets due within one year
None
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Contract acquisition cost
Return cost receivable 6,311,485.46 5,370,864.86
Input VAT to be deducted 72,473,991.77 102,375,817.29
Advance payment of taxes 22,172,844.24 10,370,746.03
Total 100,958,321.47 118,117,428.18
Other explanations:
None
(1) Information on debt investments
"□ Applicable" "√Not applicable"
Changes in impairment provisions of debt investments in the current period
"□ Applicable" "√Not applicable"
(2) Significant debt investments at the end of the period
"□ Applicable" "√Not applicable"
(3) Information on accrual of impairment provisions
"□ Applicable" "√Not applicable"
Classification basis and provision ratio of impairment provisions for each stage
None
Explanation on significant changes in book balance of debt investments with changes in provision for loss
in the current period:
"□ Applicable" "√Not applicable"
Amount of impairment provision accrued in the current period and the basis for evaluating whether the
credit risk of financial instruments increases significantly：
"□ Applicable" "√Not applicable"
(4) Information on debt investments actually written off in the current period
"□ Applicable" "√Not applicable"
Wherein, write-off of important debt investments
"□ Applicable" "√Not applicable"
Explanation on write-off of debt investments:
"□ Applicable" "√Not applicable"
Other explanations:
None
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(1) Information on other debt investments
"□ Applicable" "√Not applicable"
Changes in impairment provisions of other debt investments in the current period
"□ Applicable" "√Not applicable"
(2) Important other debt investments at the end of the period
"□ Applicable" "√Not applicable"
(3) Information on accrual of impairment provisions
"□ Applicable" "√Not applicable"
(4) Information on other debt investments actually written off in the current period
"□ Applicable" "√Not applicable"
Wherein, write-off of important other debt investments
"□ Applicable" "√Not applicable"
Explanation on write-off of other debt investments:
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
(1) Information on long-term receivables
"□ Applicable" "√Not applicable"
(2) Disclosed by classification of bad debt provisions
"□ Applicable" "√Not applicable"
Provision for bad debts accrued individually:
"□ Applicable" "√Not applicable"
Explanation on provision for bad debts by item:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued by portfolio:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued according to the general model of expected credit loss
"□ Applicable" "√Not applicable"
(3) Information on provision for bad debts
"□ Applicable" "√Not applicable"
Among them, significant amount of bad debt provision withdrawn or written back in the current period:
"□ Applicable" "√Not applicable"
Other explanations:
None
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(4) Information on long-term receivables actually written off in the current period
"□ Applicable" "√Not applicable"
Wherein, write-off of important long-term receivables
"□ Applicable" "√Not applicable"
Explanation on write-off:
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(1) Information on long-term equity investments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Changes in the current period
Recognized
Opening Closing
Opening investment Other Other Declaration Closing
balance of Provision balance of
Investee balance Additional Investment gain and loss comprehensive changes of cash balance
provision for for Others provision for
(book value) investment decrease under the income in dividends (book value)
impairment impairment impairment
equity adjustments equity or profits
method
I. Joint Venture
Huzhou Panrui
Industry
Investment 3,263,226.7
-2,286.47 3,260,940.24
Partnership 1
(Limited
Partnership)
Subtotal 3,263,226.7
-2,286.47 3,260,940.24
II. Associates
Xiongke Culture
Media 2,599,909.8
-150.84 2,599,758.98
(Hangzhou) Co., 2
Ltd.
Jiaxing Woyong
Investment
Partnership 103,062,570.22 1,864,981.77
.45
(Limited
Partnership)
Zhuhai Haishilong
Biotechnology 308,644.34 81,442,213.22 -308,644.34 81,442,213.22
Co., Ltd.
Beijing Xiushi
Cultural 3,721,446.3
-109,672.23 3,611,774.15
Development Co., 8
Ltd.
Subtotal 107,827,588
.99
Total 81,442,213.22 103,062,570.22 1,444,227.89 9,472,473.37 81,442,213.22
.70
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(2) Information on impairment test of long-term equity investments
"□ Applicable" "√Not applicable"
Other explanations
None
(1) Information on other equity instrument investments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Changes in the current period Reason for
Dividend Accumulated Accumulated
Gains Losses designation as
income gains losses
recognized in recognized in measured at
Opening Closing recognized recognized in recognized in
Item Additional Investment other other fair value
balance Others balance in the other other
investment decrease comprehensive comprehensive through other
current comprehensive comprehensive
income in the income in the comprehensive
period income income
current period current period income
Hangzhou
Regenovo
Biotechnology
Co., Ltd.
LIPOTRUE,S.L. 35,822,400.00 35,822,400.00
Golong
Holdings Co., 14,854,595.18 14,854,595.18
Ltd.
Total 71,256,995.18 71,256,995.18 /
(2) Explanation on derecognition in the current period
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"□ Applicable" "√Not applicable"
Measurement mode of investment property
(1) Investment property with the cost measurement mode
Unit: Yuan Currency: RMB
Building and Construction in
Item Land use rights Total
construction progress
I. Original book value
the current period
(1) Outsourcing
(2) Transfer-in of
inventories, fixed assets, or
construction in progress
(3) Increase due to
business combination
the current period
(1) Disposal
(2) Other transfer-out
II. Accumulated depreciation and amortization
the current period
(1) Provision or
amortization
the current period
(1) Disposal
(2) Other transfer-out
III. Impairment provision
the current period
(1) Provision
the current period
(1) Disposal
(2) Other transfer-out
IV. Book value
(2) Information on investment property with pending property right certificate:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(3) Information on impairment test of investment property with the cost measurement mode
"□ Applicable" "√Not applicable"
Other explanations
"□ Applicable" "√Not applicable"
Presentation by item
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Fixed assets 878,906,277.66 907,224,090.94
Disposal of fixed assets
Total 878,906,277.66 907,224,090.94
Other explanations:
None
Fixed assets
(1) Information on fixed assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Houses and General Dedicated Transportation
Item Total
buildings equipment equipment vehicles
I. Original book value:
balance
increased in the 2,135,197.40 3,661,281.73 5,973,072.26 358,592.92 12,128,144.31
current period
(1) Purchase 1,672,768.04 3,661,281.73 2,254,525.65 358,592.92 7,947,168.34
(2) Transfer-in
of construction in 462,429.36 3,718,546.61 4,180,975.97
progress
(3) Increase
due to business
combination
decreased in the 2,090,120.34 927,076.71 130,534.30 3,147,731.35
current period
(1) Disposal or
scrapping
(2) Disposal of
subsidiary – transfer 49,363.70 95,349.38 38,905.11 183,618.19
out
balance
II. Accumulated depreciation
balance
increased in the 15,648,958.69 4,626,251.10 17,475,731.64 1,935,559.63 39,686,501.06
current period
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(1) Provision 15,648,958.69 4,626,251.10 17,475,731.64 1,935,559.63 39,686,501.06
decreased in the 1,472,377.35 820,363.29 95,534.18 2,388,274.82
current period
(1) Disposal or
scrapping
(2) Disposal of
subsidiary – transfer 18,699.15 30,222.32 8,486.45 57,407.92
out
balance
III. Impairment provision
balance
increased in the
current period
(1) Provision
decreased in the
current period
(1) Disposal or
scrapping
balance
IV. Book value
value
value
(2) Information on temporarily idle fixed assets
"□ Applicable" "√Not applicable"
(3) Fixed assets leased out through operating lease
"□ Applicable" "√Not applicable"
(4) Information on fixed assets with pending property right certificate
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Reason for pending property
Item Book value
right certificate
Expansion of Huzhou The property right certificate is
Production Base still being processed
Longwu R&D Center The property right certificate is
still being processed
Subtotal 232,649,496.61
(5) Information on impairment test of fixed assets
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Disposal of fixed assets
"□ Applicable" "√Not applicable"
Presentation by item
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Construction in progress 86,718,518.58 74,585,001.38
Engineering materials
Total 86,718,518.58 74,585,001.38
Other explanations:
None
Construction in progress
(1) Information on construction in progress
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Huzhou
Production
Base
Expansion
Project (Phase
I)
Information
System
Upgrade
Project
Proya Smart
Factory Project
Longwu R&D
Center
Construction
Project
Other sporadic
projects
Total 86,718,518.58 86,718,518.58 74,585,001.38 74,585,001.38
(2) Information on changes in important construction in progress projects in the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Includin
Amount g:
Proportion Interest
of Amount of Amount
Increased of Accumulate capitaliza
transfer other of
amount in accumulate d amount of tion rate Source
Project Opening to fixed decreases Closing Progress interest
Budget the d project interest in the of
name balance assets in in the balance of project capitaliz
current investment capitalizatio current funds
the current ation in
period to budget n period
current period the
(%) (%)
period current
period
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Huzhou Raised
Production funds
RMB41
Base 32,051,823. 1,542,200. 1,072,04 31,816,30 21,167,901. and
Expansion 08 33 1.88 5.66 12 self-
million
Project owned
(Phase I) funds
Information Raised
System funds
RMB11
Upgrade 8,800,900.0 5,279,686. 2,210,67 3,572,818.9 8,297,094 7,490,302.8 732,960 and
Project 3 31 3.09 0 .35 8 .05 self-
million
owned
funds
Proya Smart RMB1, Self-
Factory 091.39 3.55 3.55% owned
Project million funds
RMB1,
Total 620.568 / / / /
(3) Information on impairment provision of construction in progress accrued in the current period
"□ Applicable" "√Not applicable"
(4) Information on impairment test of construction in progress
"□ Applicable" "√Not applicable"
Other explanations
"□ Applicable" "√Not applicable"
Engineering materials
"□ Applicable" "√Not applicable"
(1) Productive biological assets with the cost measurement mode
"□ Applicable""√Not applicable"
(2) Information on impairment test of productive biological assets with the cost measurement
mode
"□ Applicable" "√Not applicable"
(3) Productive biological assets with fair value measurement mode
"□ Applicable" "√Not applicable"
Other explanations
"□ Applicable" "√Not applicable"
(1) Information on oil and gas assets
"□ Applicable" "√Not applicable"
(2) Information on impairment test of oil and gas assets
"□ Applicable" "√Not applicable"
Other explanations:
None
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(1) Information on right-of-use assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Houses and buildings Total
I. Original book value
current period
(1) Lease-in 9,457,944.98 9,457,944.98
current period
II. Accumulated depreciation
current period
(1) Provision 2,690,209.80 2,690,209.80
current period
(1) Disposal
III. Impairment provision
current period
(1) Provision
current period
(1) Disposal
IV. Book value
(2) Information on impairment test of right-of-use assets
"□ Applicable" "√Not applicable"
Other explanations:
None
(1) Information on intangible assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Land use Office Patent Non-patented Customer Trademark
Item Total
rights software right technologies resources rights
I. Original book value
Opening 563,293.07
balance
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
increased
in the 3,018,048.25
current
period
(1) 2,918,048.2 100,000.
Purchase 5 00
(2)
Internal
R&D
(3)
Increase
due to
business
combinati
on
decreased
in the 62,123.89 62,123.89
current
period
(1)
Disposal
(2)
Disposal
of
subsidiary
– transfer
out
balance 10 87 70 4.00 00 74
II. Accumulated amortization
Opening 551,728.00
balance
increased
in the 6,360,838.18 3,804.08
current
period
(1) 2,337,357.1 1,994,850.0 10,696,849.3
Provision 0 0 6
decreased
in the 62,123.89 62,123.89
current
period
(1)
Disposal
(2)
Disposal
of
subsidiary
– transfer
out
balance 38 62 00 4.00 70 70
III. Impairment provision
Opening
balance
increased
in the
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
current
period
(1)
Provision
decreased
in the
current
period
(1)
Disposal
balance
IV. Book value
book value 72 5 70 30 04
Opening 11,565.07
book value
At the end of the current period, the proportion of intangible assets formed through internal R&D of the
Company to the balance of intangible assets is 0.00%.
(2) Data resources recognized as intangible assets
"□ Applicable" "√Not applicable"
(3) Information on land use rights with pending property right certificate
"□ Applicable" "√Not applicable"
(4) Information on impairment test of intangible assets
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
(1) Original book value of goodwill
"□ Applicable" "√Not applicable"
(2) Impairment provision of goodwill
"□ Applicable" "√Not applicable"
(3) Information about the asset group or combination of asset groups of goodwill
"□ Applicable" "√Not applicable"
Changes to the asset group or combination of asset groups
"□ Applicable" "√Not applicable"
Other explanations
"□ Applicable" "√Not applicable"
(4) Specific methods for determining the recoverable amount
The recoverable amount is determined based on the net amount after deducting disposal expenses from
fair value
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"□ Applicable" "√Not applicable"
The recoverable amount is determined based on the present value of expected future cash flows
"□ Applicable" "√Not applicable"
Reasons for significant discrepancies between the aforementioned information and the information used
in previous years’ impairment tests or external information
"□ Applicable" "√Not applicable"
Reasons for significant discrepancies between the information used in previous years’ impairment tests
of the Company and the actual situation of the current year
"□ Applicable" "√Not applicable"
(5) Information on performance commitments and corresponding goodwill impairment
When goodwill is formed, there is a performance commitment and the Reporting Period or its previous
period is within the performance commitment period
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Increased Amortized Other
Opening
Item amount in the amount in the decreased Closing balance
balance
current period current period amount
Renovation
costs
Endorsement
fees
Software
service fees
Total 70,202,612.96 87,741,819.74 24,102,364.90 133,842,067.80
Other explanations:
None
(1) Deferred income tax assets without offset
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Deductible Deferred Deductible Deferred
temporary income tax temporary income tax
difference assets difference assets
Provision for bad debts
of accounts receivable
Provision for devaluation
of inventories
Impact of share-based
payments
Unrealized profit from
internal transactions
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Unused membership
points
Government grants
pertinent to assets
Anticipated return losses 22,927,372.30 5,731,843.07 18,726,919.15 4,681,729.78
Lease expenses 20,257,754.36 4,283,791.40 14,429,186.60 2,610,265.96
Accrued expenses 34,891,854.80 8,722,963.70 209,381,318.53 52,345,329.62
Deductible losses 247,371,740.56 61,842,935.14
Changes in the fair value
of other equity 75,145,404.82 11,271,810.75 75,145,404.82 11,271,810.72
instrument investments
Total 873,724,426.52 204,629,716.90 818,737,694.95 191,492,476.60
(2) Deferred income tax liabilities without offset
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Taxable Deferred Taxable
Deferred income
temporary income tax temporary
tax liabilities
difference liabilities difference
Asset assessment
appreciation in
businesses combination
not under common
control
Changes in the fair value
of other debt
investments
Changes in the fair value
of other equity
instrument investments
One-off deduction for
depreciation of fixed 153,785,079.73 23,242,260.02 167,487,716.46 25,173,508.26
assets
Deferred income tax
recognized on right-of- 20,948,741.70 4,421,091.61 14,365,827.19 2,585,956.39
use assets
Total 174,733,821.43 27,663,351.63 181,853,543.65 27,759,464.65
(3) Deferred income tax assets or liabilities presented in net amount after offset
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing balance Opening balance
Balance of Balance of
Deferred income deferred income Deferred income deferred income
Item
tax assets and tax assets or tax assets and tax assets or
liabilities offset liabilities after liabilities offset liabilities after
offset offset
Deferred income tax
assets
Deferred income tax
liabilities
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(4) Details of unrecognized deferred income tax assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Deductible temporary
difference
Deductible losses 192,389,525.71 222,622,232.20
Total 407,376,048.11 473,121,650.04
(5) Deductible loss of unrecognized deferred income tax assets will expire in the following years
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Year Closing balance Opening balance Remarks
January - June 2030 19,150,074.34
Total 192,389,525.71 222,622,232.21 /
Other explanations:
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Contract
acquisition
cost
Contract
performance
cost
Return cost
receivable
Contract
assets
Prepaid
equity
transfer
payment
Funds
prepaid for
purchase of 21,806,622.93 21,806,622.93 370,449.00 370,449.00
long-term
assets
Other long-
term assets
Total 263,415,009.08 263,415,009.08 11,258,403.15 11,258,403.15
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Other explanations:
None
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing Opening
Description Description
Item Book Book Type of Book Type of
of Book value of
balance value restrictions balance restrictions
restrictions restrictions
Monetary 1,247,29 1,247,29 1,339,55 1,339,556,
Others Note 1 Others Note 2
capital 9,552.85 9,552.85 6,732.22 732.22
Notes
receivable
Inventory
Including:
Data
resources
Fixed
assets
Intangible
assets
Including:
Data
resources
Total
Note 1: Restricted monetary capitals amount to RMB1,247,299,552.85, including: large-denomination
certificates of deposit: RMB1,240,357,805.54; Judicially frozen funds: RMB3,416,733.86; time deposit
margin for transformer: RMB250,000.00; ETC deposit: RMB70,000.00; Deposit for directly-operated
store: RMB3,205,013.45.
Note 2: Restricted monetary capital amount to RMB 1,339,556,732.22, including: large-denomination
certificates of deposit: RMB 1,327,741,986.16; Pinduoduo deposit: RMB 5,298,890.00; Deposit for
directly-operated store: RMB 2,779,122.20; Time deposit margin for transformer: RMB 250,000.00; ETC
deposit: RMB 70,000.00. Judicially frozen monetary capitals amount to RMB3,416,733.86.
Other explanations:
None
(1) Classification of short-term borrowings
"□ Applicable" "√Not applicable"
(2) Information on overdue but yet unrepaid short-term borrowings
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
(1) Presentation of accounts payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Payment for goods 570,336,792.59 340,707,102.70
Expenses 435,533,542.65 297,407,595.54
Payment for acquisition of
long-term assets
Total 1,052,738,520.01 676,388,126.18
(2) Important accounts payable aged over one year or overdue
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
(1) Presentation of receipts in advance
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Rents receivable in advance 269,656.48 129,400.52
Total 269,656.48 129,400.52
(2) Important receipts in advance aged over one year
"□ Applicable" "√Not applicable"
(3) Significant changes in book value during the Reporting Period and the reasons thereof
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
(1) Information on contract liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Unused membership points 160,347,396.63 109,942,861.10
Receipts in advance for goods 38,725,756.37 43,767,727.52
Total 199,073,153.00 153,710,588.62
(2) Important contract liabilities aged over one year
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(3) Significant changes in book value during the Reporting Period and the reasons thereof
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
(1) Presentation of employee compensation payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Opening Increase in the Decrease in the Closing
Item
balance current period current period balance
I. Short-term compensation 440,949,860.19 488,918,010.15
.93 7
II. Post-employment benefits –
defined contribution plans
III. Dismissal benefits 7,069,583.73 9,247,098.73
IV. Other benefits due within
one year
Total 465,089,050.44 513,856,582.17
.95 2
(2) Presentation of short-term compensation
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Opening Increase in the Decrease in the
Item Closing balance
balance current period current period
I. Salaries, bonuses,
allowances and subsidies
II. Welfare expense of
employees
III. Social insurance
premium
Including: Medical
insurance premium
Work-related injury
insurance premium
Maternity insurance
premium
IV. Housing provident
fund
V. Trade union fund and
staff education fund
VI. Short-term paid leave
VII. Short-term profit
sharing plan
Total 152,573,822.93 440,949,860.19 488,918,010.15 104,605,672.97
(3) Presentation by defined contribution plan
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Opening Increase in the Decrease in the Closing
Item
balance current period current period balance
insurance
insurance
payment
Total 952,083.02 17,069,606.52 15,691,473.29 2,330,216.25
Other explanations:
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Value-added tax (VAT) 23,371,099.33 20,502,881.02
Enterprise income tax 95,002,107.62 86,110,649.72
Withholding of personal income
tax
Urban maintenance and
construction tax
Property tax 2,014,479.63 8,183,500.87
Land use tax 1,731,432.00
Stamp duties 880,942.50 894,877.77
Education surcharge 1,382,388.87 653,609.96
Surcharge for local education 921,592.59 435,739.98
Total 136,472,719.80 125,853,371.28
Other explanations:
None
(1) Presentation by item
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest payable
Dividends payable
Other payables 81,446,495.70 91,776,722.59
Total 81,446,495.70 91,776,722.59
(2) Interest payable
"□ Applicable" "√Not applicable"
(3) Dividends payable
"□ Applicable" "√Not applicable"
(4) Other payables
Other payables presented by nature of payment
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Item Closing balance Opening balance
Security deposits 28,600,461.64 40,845,487.15
Restricted share repurchase
obligations
Others 7,717,848.58 4,800,451.16
Total 81,446,495.70 91,776,722.59
Important other payables aged over one year or overdue
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Reason for failure to repay or
Item Closing balance
carry forward
Restricted share repurchase
Restricted share repurchase
obligations
fulfilled yet
Total 45,128,185.48 /
Other explanations:
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Long-term borrowings due
within 1 year
Bonds payable due within 1
year
Long-term payables due
within 1 year
Lease liabilities due within 1
year
Total 4,807,612.33 3,473,806.48
Other explanations:
None
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Short-term bonds payable
Return payment payable
Tax on items to be resold 4,894,674.30 5,509,508.59
Total 4,894,674.30 5,509,508.59
Changes in short-term bonds payable:
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(1) Classification of long-term loans
"□ Applicable" "√Not applicable"
Other explanations
"□ Applicable" "√Not applicable"
(1) Bonds payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Convertible corporate bonds 797,652,424.97 780,011,293.32
Total 797,652,424.97 780,011,293.32
(2) Specific information on bonds payable: (excluding other financial instruments such as
preference shares and perpetual bonds classified as financial liabilities)
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Repay
Premiu
Face Issuance Interest ment
m or
Bond value Coupon Issuance Bond Issuance Opening during accrued during Closing Default
discount
name (Yuan rate (%) date term amount balance current by face curren balance or not
amortiz
) period value t
ation
period
Proya
Convertib 1.50 No
le Bond
Total / / / / /
(3) Explanation on convertible corporate bonds
"√ Applicable" "□ Not applicable"
Share
Item Share conversion conditions conversion
time
Proya With the approval of the CSRC, namely, the Reply on Approving From June
Convertible Proya Cosmetics Co., Ltd.'s Public Issuance of Convertible Corporate 14, 2022,
Bond Bonds (ZJXK [2021] No. 3408), the Company publicly issued 7,517,130 to
convertible bonds to non-specific targets on December 8, 2021, each bond December
with a face value of RMB100.00. The total amount of issuance is 7, 2027
RMB751,713,000.00.
The nominal interest rate of the convertible corporate bonds issued
above was as follows: 0.30% in the first year, 0.50% in the second year,
and 2.00% in the sixth year. Annual interest payment dates are
anniversaries of the date of initial offering of convertible bonds. The
Company will, no later than five trading days after the interest payment
day of each year, pay the interests of the year and, no later than five trading
days after the maturity date of convertible corporate bonds, redeem all
unconverted convertible bonds from investors at a price of 115% of the
face value of the convertible bonds issued that time (including the annual
interests of the last tranche).
The convertible period of convertible bonds starts from the first
trading day after the expiration of six months from the issuance date of
convertible bonds until the maturity date of convertible bonds. The initial
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
conversion price is RMB195.98/share, in no case, lower than the average
trading price of A shares of the Company in the twenty trading days prior
to the publication of the prospectus (if the stock price is adjusted for ex-
rights or ex-dividend in the twenty trading days, the closing price of the
trading day before such adjustment is calculated according to the price
after the ex-rights or ex-dividend adjustment) or the average trading price
of A shares of the Company in the previous trading day, and is not adjusted
up.
Due to the implementation of the equity distribution plan and the
repurchase of some equity incentive restricted shares by the Company,
according to the relevant provisions of the Prospectus of Proya Cosmetics
Co., Ltd. for the Public Offering of A-Share Convertible Corporate Bonds
and the relevant provisions of the CSRC on the issuance of convertible
corporate bonds, the conversion price of Proya Convertible Bonds was
adjusted RMB96.23/share, and the adjusted price took effect on June 17,
Accounting treatment and judgment basis of share conversion rights
"√ Applicable" "□ Not applicable"
In the current period, a total of 90 convertible corporate bonds were converted, with an increase of
RMB91.00 in capital stock, an increase of RMB1,275.61 in capital reserve (capital stock premium), and
a decrease of RMB611.73 in other equity instruments.
(4) Explanation on other financial instruments classified as financial liabilities
Basic information on other financial instruments such as preference shares and perpetual bonds that are
outstanding at the end of the period
"□ Applicable" "√Not applicable"
Statement of changes in financial instruments such as preference shares and perpetual bonds that are
outstanding at the end of the period
"□ Applicable" "√Not applicable"
Explanation on the basis of classifying other financial instruments into financial liabilities
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Payable operating lease payment 16,700,750.44 12,060,501.83
Unrecognized financing expenses -1,250,608.41 -1,105,121.71
Total 15,450,142.03 10,955,380.12
Other explanations:
None
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Presentation by item
"□ Applicable" "√Not applicable"
Long-term payables
"□ Applicable" "√Not applicable"
Special accounts payable
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance Cause of formation
Provide external
guarantees
Pending litigations
Product quality
assurance
Restructuring
obligation
Loss-making contract
to be performed
Return payment Estimated future
payable potential return losses
Others
Total 29,418,726.32 25,162,463.80 /
Other particulars, including the particulars on key assumptions and estimates concerning estimated
significant liabilities:
None
Information on deferred income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Decrease in
Opening Increase in the Closing Cause of
Item the current
balance current period balance formation
period
Government Government
grants appropriation
Total 15,260,760.59 3,000,000.00 727,777.84 17,532,982.75 /
Other explanations:
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Increase or decrease in the change (+, -)
Shares
Opening Issuance converted Closing
balance Bonus balance
of new from Others Subtotal
shares
shares capital
reserve
Total
shares
Other explanations:
In the current period, a total of 90 convertible corporate bonds were converted, with an increase of
RMB91.00 in capital stock, an increase of RMB1,275.61 in capital reserve (capital stock premium), and
a decrease of RMB611.73 in other equity instruments.
(1). Basic information on other financial instruments such as preference shares and perpetual
bonds that are outstanding at the end of the period
"□ Applicable" "√Not applicable"
(2). Statement of changes in financial instruments such as preference shares and perpetual bonds
that are outstanding at the end of the period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Increase in the Decrease in the
Outstanding Opening Closing
current period current period
financial
Book Book
instruments Number Book value Number Number Number Book value
value value
Proya
Convertible 7,507,530 50,891,546.26 90 611.73 7,507,440 50,890,934.53
Bond
Total 7,507,530 50,891,546.26 90 611.73 7,507,440 50,890,934.53
Information on changes of other equity instruments in the current period, explanation on reasons for
changes, and basis for relevant accounting treatment:
"□ Applicable" "√Not applicable"
Other explanations:
"√ Applicable" "□ Not applicable"
In the current period, there was a decrease of RMB611.73 due to the current conversion of 90
convertible corporate bonds into shares, with an increase of RMB91 in capital stock, an increase of
RMB1,275.61 in capital reserve (capital stock premium), and a decrease of RMB611.73 in other equity
instruments.
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Capital premium
(Equity 794,055,277.25 1,275.61 794,056,552.86
premium)
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Other capital
reserve
Total 846,600,405.28 -6,174,052.65 840,426,352.63
Other explanations, including the information on current changes and the explanation on reasons for the
changes:
The capital premium (equity premium) of the current period increased by RMB1,275.61, which was
due to the conversion of convertible corporate bonds in the current period. For details, refer to the
particulars contained in “46. Bonds payable”, “VII. Notes to the Items in Consolidated Financial
Statements”, “Section VIII Financial Report” of this Report.
Other capital reserves of the current period increased by RMB-6,175,328.26, which was due to the
restricted stock incentives of RMB-6,175,328.26 recognized under the Equity Incentive Plan and
calculated into other capital reserves.
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Restricted shares
with repurchase 46,130,784.28 714,114.24 45,416,670.04
obligation
Share repurchase 192,144,659.13 192,144,659.13
Total 238,275,443.41 714,114.24 237,561,329.17
Other explanations, including the information on current changes and the explanation on reasons for the
changes:
None
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount incurred in the current period
Less: Less:
Included Included
in other in other
compreh compreh
ensive ensive
income income
Attribute
Amount for the for the Attribute
Less: d to
Item Opening balance incurred previous previous d to Closing balance
Income minority
before income period period parent
tax sharehol
tax in the and and company
expenses ders
current period transferr transferr after tax
after tax
ed in ed in
profit or retained
loss for earnings
the for the
current current
period period
I. Other
comprehensive
income that will not
-84,123,594.10 -84,123,594.10
be subsequently
reclassified into profit
and loss
Including: Changes
arising from the re-
measurement of
defined benefit plans
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Other
comprehensive
income that can't be
-20,250,000.00 -20,250,000.00
reversed through
profit or loss under
the equity method
Changes in the fair
value of other equity
-63,873,594.10 -63,873,594.10
instrument
investments
Changes in the fair
value of enterprise’s
own credit risk
II. Other
comprehensive
income that will be -781,352.44 627,861.53 -153,490.91
reclassified into profit
or loss
Including: Other
comprehensive
income that can be
converted into profit
or loss under the
equity method
Changes in the fair
value of other debt
investments
Amount of
financial assets
reclassified into other
comprehensive
income
Credit impairment
provision of other
debt investments
Cash flow hedge
reserve
Difference from
translation of 627,861.
-781,352.44 627,861.53 -153,490.91
financial statements in 53
foreign currency
Total other
comprehensive -84,904,946.54 627,861.53 -84,277,085.01
income
Other explanations, including the adjustment of the effective part of cash flow hedging gains and losses
into the initially recognized amount of the hedged item:
None
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Opening balance Increase in the Decrease in the Closing balance
current period current period
Legal surplus
reserve
Discretionary
surplus reserve
Reserve fund
Enterprise
development fund
Others
Total 198,411,582.50 198,411,582.50
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Explanation on surplus reserves, including the current changes and the explanation on the reasons for the
changes:
None
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Current period Previous year
Undistributed profits at the end of
previous period before adjustment
Total undistributed profits at the
beginning of the adjustment period (+
for increase, - for decrease)
Unappropriated earnings at the
beginning of the period after 4,233,103,785.98 3,040,145,490.59
adjustment
Plus: Net profit attributable to the
owner of the parent company in the 798,511,332.07 1,551,995,692.29
current period
Less: Withdrawal of statutory surplus
reserve
Withdrawal of discretionary
surplus reserve
Withdrawal of general risk
reserve
Dividends payable on common
stock
Common stock dividends
converted to share capital
Undistributed profits at the end of the
period
According to the Resolution of the 2024 Annual General Meeting of Shareholders of the Company,
the Company distributed cash dividends of RMB1.19 (tax inclusive) per share to all shareholders based
on the total share capital of 394,036,801 after deducting 2,210,825 shares in the Company's special
securities account for repurchase from the total share capital of 396,247,626 shares registered on the
registration date of dividend-paying equity, totaling RMB468,903,793.19 (tax inclusive).
The difference between common stock dividends payable and actual cash dividends distributed in the
first half of 2025 was RMB288,484.56, which was due to other payables offset by cash dividends of
RMB288,484.56 distributed on restricted shares that were not expected to be released from sales
restrictions in the future.
Details of the adjustment of the undistributed profits at the beginning of the period:
Standards for Business Enterprises and its related new regulations at the beginning of the period is
RMB0.00.
RMB0.00.
period is RMB0.00.
the beginning of the period is RMB0.00.
(1).Information on operating revenue and operating costs
"√ Applicable" "□ Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Unit: Yuan Currency: RMB
Amount incurred in the current period Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Primary
business
Other
business
Total 5,361,890,476.66 1,427,500,235.41 5,001,465,470.72 1,509,530,495.30
(2).Breakdown of operating revenue and operating costs
"□ Applicable" "√Not applicable"
Other explanations
"□ Applicable" "√Not applicable"
(3).Explanation on performance obligations
"□ Applicable" "√Not applicable"
(4).Explanation on remaining performance obligations allocated
"□ Applicable" "√Not applicable"
(5).Significant contract changes or significant transaction price adjustments
"□ Applicable" "√Not applicable"
Other explanations:
Amount for the current period Amount for the same period last year
Item
Revenue Cost Revenue Cost
Products
sales
Others 2,575,964.80 2,274,216.51 4,448,351.74 2,845,660.77
Subtotal 5,358,509,118.57 1,426,301,205.05 4,998,896,779.99 1,508,745,633.09
Amount for the
Amount for the current
Item same period last
period
year
Income recognized at a certain point 5,357,372,914.53 4,998,208,843.92
Income recognized in a certain period 1,136,204.04 687,936.07
Subtotal 5,358,509,118.57 4,998,896,779.99
liabilities is RMB98,813,124.92.
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Amount incurred in the current Amount incurred in the previous
Item
period period
Consumption tax 843.50 59.75
Urban maintenance and
construction tax
Education surcharge 10,646,460.01 9,071,363.17
Surcharge for local education
expenses
Stamp duties 3,390,583.46 3,465,294.13
Property tax 2,886,572.69 3,609,939.77
Land use tax -17,811.00 1,621,149.00
Vehicle and vessel tax 22,570.32 31,445.52
Cultural undertaking
construction tax
Total 45,232,044.89 41,900,210.19
Other explanations:
None
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount incurred in the Amount incurred in the
Item
current period previous period
Image promotion expenses 2,361,952,542.82 2,063,265,280.58
Employee compensation and service fees 250,218,869.49 220,539,736.18
Office allowances 26,204,386.31 23,824,926.89
Travel expenses 6,145,634.87 6,990,788.80
Meeting affair charges 4,324,896.03 6,203,280.37
Equity incentive expenses for restricted
shares
Survey consulting fees 6,124,218.88 12,183,721.55
Others 3,151,684.93 5,245,048.37
Total 2,658,870,093.11 2,339,661,922.31
Other explanations:
None
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Amount incurred in the Amount incurred in the
current period previous period
Employee compensation and service fees 107,793,125.41 93,348,489.89
Office allowance and business
entertainment expenses
Equity incentive expenses for restricted
-7,764,649.82 -2,220,910.90
shares
Expenses for depreciation, amortization
and lease
Travel expense and conference fees 7,151,047.43 3,536,158.74
Consultation and intermediary fees 13,578,786.25 7,581,867.14
Others 2,900,770.16 1,009,240.20
Total 177,479,237.25 176,927,741.63
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Other explanations:
None
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Amount incurred in the Amount incurred in the
current period previous period
Labor cost 54,780,873.53 47,707,793.99
Outsourced R&D expenses 23,485,285.47 27,339,439.25
Expenses for depreciation, amortization
and lease
Direct input costs 2,975,707.06 7,027,978.71
Equity incentive expenses for restricted
shares
Others 2,096,492.83 1,766,239.20
Total 95,025,833.06 94,613,242.52
Other explanations:
None
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Amount incurred in the Amount incurred in the
current period previous period
Interest expenses 15,892,178.30 10,601,806.58
Exchange gains and losses -7,766,541.70 2,013,990.08
Handling fees 317,573.03 398,294.82
Interest income -31,863,929.06 -37,663,413.80
Total -23,420,719.43 -24,649,322.32
Other explanations:
None
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Classification by nature Amount incurred in the Amount incurred in the
current period previous period
Government grants pertinent to assets 727,777.84 517,738.80
Government grants related to income 50,677,310.00 41,996,899.59
Refund of service charges for withholding
personal income tax
Additional deduction for VAT 3,903,017.13 22,529,393.74
VAT exemption 80,373.37
Total 56,393,553.24 66,048,236.39
Other explanations:
None
"√ Applicable" "□ Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Unit: Yuan Currency: RMB
Amount incurred in the Amount incurred in the
Item
current period previous period
Long-term equity investment income
calculated by equity method
Investment income from disposal of
-5,023,661.55
long-term equity investment
Investment income of held-for-trading
financial assets during the holding
period
Dividend income from other equity
instrument investments during the
holding period
Interest income from debt investment
during the holding period
Interest income from other debt
investments during the holding period
Investment income from disposal of
held-for-trading financial assets
Investment income from disposal of
other equity instrument investments
Investment income from disposal of
debt investment
Investment income from disposal of
other debt investments
Gains from debt restructuring
Total -3,579,433.65 -2,153,663.74
Other explanations:
None
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount incurred in the Amount incurred in the
Item
current period previous period
Bad debt loss on notes receivable
Bad debt loss on accounts receivable 3,820,106.16 -2,460,128.17
Bad debt loss on other receivables -6,943,501.70 4,758,002.01
Impairment losses on debt investment
Impairment losses on other debt
investments
Bad debt loss on long-term receivables
Impairment losses related to financial
guarantees
Total -3,123,395.54 2,297,873.84
Other explanations:
None
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount incurred in the Amount incurred in the previous
Item
current period period
I. Impairment losses on contract
assets
II. Loss on devaluation of
inventories and impairment loss on -31,433,006.97 -32,417,516.03
contract performance cost
III. Impairment loss on long-term
equity investment
IV. Impairment loss on investment
property
V. Impairment loss on fixed assets
VI. Impairment loss on engineering
materials
VII. Impairment loss on
construction in progress
VIII. Impairment loss on productive
biological assets
IX. Impairment loss on oil and gas
assets
X. Impairment loss on intangible
assets
XI. Impairment loss on goodwill
XII. Others
Total -31,433,006.97 -32,417,516.03
Other explanations:
None
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Amount incurred in the current Amount incurred in the
period previous period
Gains from disposal of fixed
-346,504.18 -712,859.58
assets
Total -346,504.18 -712,859.58
Other explanations:
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount included in
Amount incurred in the Amount incurred in the
Item current non-recurring
current period previous period
gains and losses
Total profit from
disposal of non-
current assets
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Including: Gains
from disposal of
fixed assets
Gains from
disposal of intangible
assets
Revenue from debt
restructuring
Gains from non-
monetary asset
exchange
Revenue from fines
and liquidated 37,771.56 34,990.95 37,771.56
damages
Amount not required
to be paid
Right-protection
related receivables
Others 79,831.84 279,139.89 14,319.13
Total 507,490.19 956,198.43 441,977.48
Other explanations:
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount included in
Amount incurred in the Amount incurred in the
Item current non-recurring
current period previous period
gains and losses
Total loss from
disposal of non-
current assets
Including: Loss
from disposal of
fixed assets
Loss from disposal
of intangible assets
Loss from debt
restructuring
Loss from non-
monetary asset
exchange
External donation 89,024.60 1,259,344.27 89,024.60
Loss from damage
and scrapping of 33,715.42 648.90 33,715.42
non-current assets
Late payment fee 299,413.26 132,634.13 299,413.26
Others 702,881.10 38,128.38 702,881.10
Total 1,125,034.38 1,430,755.68 1,125,034.38
Other explanations:
None
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(1). Income tax expense statement
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount incurred in the current Amount incurred in the previous
Item
period period
Current income tax expense 185,656,941.44 170,235,144.31
Deferred income tax expense -13,233,353.35 1,901,274.12
Total 172,423,588.09 172,136,418.43
(2). Adjustment process of accounting profit and income tax expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Amount incurred in the current period
Total profit 998,497,421.08
Income tax expense calculated at 249,624,355.27
statutory/applicable tax rate
Impact of different tax rates applicable to -69,467,030.06
subsidiaries
Impact of adjusting income tax in previous 1,036,740.91
periods
Impact of non-taxable income
Impact of non-deductible costs, expenses and 29,370,119.48
losses
Impact of using deductible losses of deferred -7,879,503.59
income tax assets unrecognized in the previous
period
Impact of deductible temporary differences or
deductible losses of deferred income tax assets -19,183,160.03
unrecognized in the current period
Additional deductions for R&D expenditures -11,077,933.89
Income tax expenses 172,423,588.09
Other explanations:
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
For details on the after-tax net amount of other comprehensive income, please refer to the
particulars contained in “57. Other comprehensive income” in “VII. Notes to the Items in Consolidated
Financial Statements”, “Section VIII Financial Report” of this Report.
(1). Cash related to operating activities
Other cash received related to operating activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Amount incurred in the current Amount incurred in the
period previous period
Interest income from bank deposits 22,320,583.93 37,087,699.04
Government grants 53,677,310.00 43,030,869.59
Receivables and payables and others 36,054,623.38 15,577,859.24
Total 112,052,517.31 95,696,427.87
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Explanation on other cash received related to operating activities:
None
Other cash paid related to operating activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Amount incurred in the current Amount incurred in the
period previous period
Expenses paid in cash 2,625,517,107.20 2,144,901,217.47
Receivables and payables 9,539,448.59 35,164,399.38
Total 2,635,056,555.79 2,180,065,616.85
Explanation on other cash paid related to operating activities:
None
(2). Cash related to investing activities
Important cash received related to investing activities
"□ Applicable" "√Not applicable"
Important cash paid related to investing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Amount incurred in the Amount incurred in the
current period previous period
Payments for the acquisition and 114,207,206.03
construction of long-term assets 46,670,255.34
Prepaid equity transfer payment 229,740,000.00
Total 276,410,255.34 114,207,206.03
Explanation on important cash paid related to investing activities
None
Other cash received related to investing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Amount incurred in the current Amount incurred in the
period previous period
Redemption of Large-denomination
certificates of deposit and time 102,075,000.00 300,000,000.00
deposits
Total 102,075,000.00 300,000,000.00
Explanation on other cash received related to investing activities:
None
Other cash paid related to investing activities
"□ Applicable" "√Not applicable"
(3). Cash related to financing activities
Other cash received related to financing activities
"□ Applicable" "√Not applicable"
Other cash paid related to financing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Item Amount incurred in the current Amount incurred in the
period previous period
Payment for operating lease rent 4,851,682.75 3,671,046.46
Repurchase of the Company’s shares 153,062,220.18
Total 4,851,682.75 156,733,266.64
Explanation on other cash paid related to financing activities:
None
Information on changes in liabilities arising from financing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Increase in the current
Decrease in the current period
period
Opening Closing
Item
balance Cash Non-cash Non-cash balance
Cash changes
changes changes changes
Other
payables
(obligation
for
repurchase
of
restricted
shares)
Bonds
payable
(including
bonds 780,011,293.32 17,641,886.53 754.88 797,652,424.97
payable
due within
one year)
Lease
liabilities
(including
lease 14,429,186.60 10,680,250.51 4,851,682.75 20,257,754.36
liabilities
due within
one year)
Total 840,571,264.20 28,322,137.04 4,851,682.75 1,003,353.68 863,038,364.81
(4). Explanation on presentation of cash flows at net amount
"□ Applicable" "√Not applicable"
(5). Significant activities and financial impacts that do not involve current cash receipts and
payments but affect the financial condition of the enterprise or may affect the cash flow of the
enterprise in the future
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(1). Supplementary information to cash flow statement
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount for the current
Supplementary information Amount of previous period
period
Net profit 826,073,832.99 723,932,276.29
Add: Provision for asset impairment 31,433,006.97 32,417,516.03
Credit impairment loss 3,123,395.54 -2,297,873.84
Depreciation of fixed assets,
depletion of oil and gas assets and
depreciation of productive biological
assets
Amortization of right-of-use assets 2,690,209.80 3,316,453.06
Amortization of intangible assets 10,696,849.36 8,967,362.97
Amortization of long-term deferred
expenses
Losses on disposal of fixed assets,
intangible assets and other long-term 346,504.18 712,859.58
assets (“-” for income)
Losses from scrapping of fixed assets
(“-” for income)
Losses on changes in fair value (“-”
for income)
Financial expenses (“-” for income) 2,380,549.75 10,320,057.93
Investment loss (“-” for income) 3,579,433.65 2,153,663.74
Decrease in deferred income tax
-13,137,240.30 1,124,671.65
assets (“-” for increase)
Increase in deferred income tax
-96,113.02 776,602.47
liabilities (“-” for decrease)
Decrease in inventory (“-” for
-12,614,397.75 -32,743,508.58
increase)
Decrease in operating receivables
(“-” for increase)
Increase in operating payables (“-”for
decrease)
Others -6,175,328.26 886,255.50
Net cash flows from operating
activities
Conversion of debt into capital
Convertible corporate bonds due
within one year
Fixed assets under finance lease
Closing balance of cash 3,385,226,440.00 4,005,586,605.59
Less: Opening balance of cash 2,742,569,684.62 3,659,267,712.03
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
equivalents
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(2). Net cash paid to acquire subsidiaries in the current period
"□ Applicable" "√Not applicable"
(3). Net cash received from disposal of subsidiaries in the current period
"□ Applicable" "√Not applicable"
(4). Composition of cash and cash equivalents
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
I. Cash 3,385,226,440.00 2,742,569,684.62
Including: Cash on hand 8,307.93 9,229.11
Bank deposits that can be
used for payment at any time
Other monetary capital that
can be used for payment at any time
Funds deposited with the
central bank for payment
Deposits in other banks
Funds for interbank lending
II. Cash equivalents
Including: Bond investment due
within three months
III. Closing balance of cash and
cash equivalents
Including: Cash and cash
equivalents with restricted use by
the parent company or a subsidiary
of the group
(5). Information on funds with restricted use but still presented as cash and cash equivalents
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Reason
Special account of raised
Raised funds 21,311,763.32
funds
Cash subject to foreign exchange
Subject to foreign exchange
control of overseas operating 157,412,710.37
control
subsidiaries
Total 178,724,473.69 /
(6). Monetary capital not belonging to cash and cash equivalents
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance Reason
Large-denomination
certificates of Not available for withdrawal
deposit and time on demand
deposits
Judicially frozen
funds
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Deposit for directly- Not available for withdrawal
operated store on demand
Not available for withdrawal
Transformer deposit 250,000.00 250,000.00
on demand
Not available for withdrawal
ETC deposit 70,000.00 70,000.00
on demand
Not available for withdrawal
Pinduoduo deposit 5,298,890.00
on demand
Total 1,247,299,552.85 1,339,556,732.22 /
Other explanations:
"□ Applicable" "√Not applicable"
Explanation on the names of “others” items for adjusting the closing balance of the previous year and
adjustment amounts:
"□ Applicable" "√Not applicable"
(1).Foreign-currency monetary items
"√ Applicable" "□ Not applicable"
Unit: Yuan
Converted RMB
Ending foreign Converted exchange
Item balance at the end of
currency balance rate
period
Monetary capital - - 141,086,815.20
Including: USD 5,392,953.25 7.1586 38,605,995.14
HKD 45,099,302.10 0.9120 41,130,563.52
EUR 5,593,181.33 8.4024 46,996,146.81
JPY 213,200,146.00 0.0496 10,574,727.24
KRW 60,315,937.00 0.0053 319,674.47
SGD 76,391.39 5.6179 429,159.19
MYR 1,602,486.70 1.6950 2,716,214.96
SF 22,954.10 8.9721 205,946.48
VND 14,904,793.00 0.0003 4,471.44
TWD 421,625.00 0.2462 103,804.08
THB 509.20 0.2197 111.87
Accounts receivable - - 4,038,614.13
Including: EUR 218,942.52 8.4024 1,839,642.63
JPY 44,330,630.00 0.0496 2,198,799.25
KRW 32,500.00 0.0053 172.25
Other receivables - - 5,824,498.72
Including: USD 17,955.43 7.1586 128,535.74
EUR 567,292.42 8.4024 4,766,617.83
JPY 17,908,950.00 0.0496 888,283.92
SGD 7,309.00 5.6179 41,061.23
Accounts payable - - 12,432,171.50
Including: EUR 1,177,641.53 8.4024 9,895,015.19
JPY 51,152,345.00 0.0496 2,537,156.31
Other payables - - 986,612.68
Including: EUR 4,585.57 8.4024 38,529.79
HKD 411,497.65 0.9120 375,285.86
JPY 526,678.00 0.0496 26,123.23
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
KRW 103,146,000.00 0.0053 546,673.80
Other explanations:
None
(2).Explanation on overseas operating entities, including the main overseas operating location,
functional currency, selection criteria, and reasons for change in the functional currency of
important overseas operating entities, which should be disclosed
"√ Applicable" "□ Not applicable"
Hapsode Co., Ltd. and Hanna Cosmetics Co., Ltd. operate in South Korea, and their business income
and expenditures are mainly in KRW, thus they choose KRW as the functional currency. Hong Kong
Xinghuo Industry Limited, Hong Kong Zhongwen Electronic Commerce Co., Limited, Hong Kong
Xuchen Trading Limited, Hong Kong Keshi Trading Co., Ltd., Boya (Hong Kong) Investment
Management Co., Limited and Hong Kong Wanyan Electronic Commerce Co., Limited operate in Hong
Kong, China, thus they choose RMB as the functional currency. OR Off&Relax operates in Japan and its
business income and expenditures are mainly in JPY, thus it chooses JPY as the functional currency.
PROYA PTE. LTD. operates in Singapore, and its business income and expenditures are mainly in SGD,
thus it chooses SGD as the functional currency. PROYA BEAUTY MALAYSIA SDH. BHD. operates in
Malaysia and its business income and expenditures are mainly in MYR, thus it chooses MYR as the
functional currency. PROYA EUROPE SAS operates in Europe, and its business income and expenditures
are mainly in EUR, thus it chooses EUR as the functional currency. PROYA EUROPE SARL operates in
Luxembourg, and its business income and expenditures are mainly in EUR, thus it chooses EUR as the
bookkeeping currency.
(1). The Company as the lessee
"√ Applicable" "□ Not applicable"
Variable lease payments not included in the measurement of lease liabilities
"□ Applicable" "√Not applicable"
Lease expenses of short-term leases or low-value asset leases subject to simplified treatment
"√ Applicable" "□ Not applicable"
“VII. Notes to the Items in Consolidated Financial Statements”, “Section VIII Financial Report” of this
Report.
Company, refer to the particulars contained in “38. Lease” in “V. Significant Accounting Policies and
Accounting Estimates”, “Section VIII Financial Report” of this Report. The amounts of short-term lease
expenses and low-value asset lease expenses included in the current profit or loss are as follows:
Amount for the
Amount for the
Item same period last
current period
year
Short-term lease expenses 1,861,594.32 1,263,050.54
Low-value asset lease expenses (except for short-term
lease expenses)
Total 2,336,904.96 1,368,299.85
Sale and leaseback transactions and judgment basis
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Total cash outflows related to leases is 7,958,355.55 (Unit: Yuan Currency: RMB)
(2). The Company as the lessor
Operating lease where the Company is the lessor
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Including: Income related to
Item Lease income variable lease payments not
included in lease receipts
Investment property 3,229,752.57
Total 3,229,752.57
For the details of fixed assets leased out through operating lease, refer to the particulars contained
in “20. Investment property” in “VII. Notes to the Items in Consolidated Financial Statements”, “Section
VIII Financial Report” of this Report.
Financing lease where the Company is the lessor
"□ Applicable" "√Not applicable"
Reconciliation Statement of undiscounted lease receipts and net lease investments
"□ Applicable" "√Not applicable"
Undiscounted lease receipts in the next five years
"□ Applicable" "√Not applicable"
(3). Profits and losses of financial lease sales recognized by the Company as a manufacturer or dealer
"□ Applicable" "√Not applicable"
Other explanations
None
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
VIII. R&D expenditures
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Amount incurred in the Amount incurred in the
current period previous period
Labor cost 54,780,873.53 47,707,793.99
Outsourced R&D expenses 23,485,285.47 27,339,439.25
Expenses for depreciation, amortization
and lease
Direct input costs 2,975,707.06 7,027,978.71
Equity incentive expenses for restricted
shares
Others 2,096,492.83 1,766,239.20
Total 95,025,833.06 94,613,242.52
Including: Expensed R&D expenditures 95,025,833.06 94,613,242.52
Capitalized R&D expenditures
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Other explanations:
None
"□ Applicable" "√Not applicable"
Important capitalized R&D project
"□ Applicable" "√Not applicable"
Impairment provision of development expenditures
"□ Applicable" "√Not applicable"
Other explanations
None
"□ Applicable" "√Not applicable"
IX. Change of Consolidation Scope
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"□ Applicable" "√Not applicable"
Were there any transactions or events that resulted in the loss of control over a subsidiary in the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Difference Method and
between key Amount of
disposal assumptions other
Book value Fair value
consideration used to comprehensive
of of
Disposal and the share Remaining determine income related
Disposal remaining remaining Gains or
Disposal ratio at of net assets equity the fair to former
Time method Basis for equity in equity in losses from
consideration the time of said ratio on value of subsidiaries'
Name of of loss at the judgment consolidated consolidated remeasuring
at the time of of loss subsidiary the date of remaining equity
subsidiary of time of of loss of financial financial remaining
loss of of corresponding loss of equity in investments
control loss of control statements statements equity at
control control to the control consolidated reclassified to
control on the date on the date fair value
(%) disposal of (%) financial investment
of loss of of loss of
investment in statements gains or losses
control control
consolidated on the date or retained
financial of loss of earnings
statements control
Zhejiang Completion
Beauty April Equity of property
Cosmetics 2025 transfer right
Co., Ltd. transfer
Other explanations:
"□ Applicable" "√Not applicable"
Was there a stepwise disposal of investment to subsidiaries through multiple transactions and a loss of control in the current period
"□ Applicable" "√Not applicable"
Other explanations:
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"□ Applicable" "√Not applicable"
Explanation of the changes in the consolidation scope caused by other reasons (for example, newly established subsidiary, liquidated subsidiary, etc.) and the
specific information:
"√ Applicable" "□ Not applicable"
Time point of equity
Company name Equity acquisition method Contribution amount Contribution ratio
acquisition
Xuzhou Boya Enterprise
Newly established subsidiary February 2025 1,000,000.00 100.00%
Management Co., Ltd.
From beginning of the period
Net assets as at the disposal
Company name Equity disposal method Time point of equity disposal to the disposal date
date
Net profit
Hangzhou Tielexin Aini
Catering Management Co., Cancel April 2025 -894,830.04 -2.11
Ltd.
"□ Applicable" "√Not applicable"
X. Equity in Other Entities
(1).Composition of enterprise group
"√ Applicable" "□ Not applicable"
Unit: RMB '0,000 Currency: RMB
Name of Main place of Registered Registration Nature of Shareholding ratio (%) Mode of
subsidiary business capital place business Direct Indirect acquisition
Ningbo Wholesale and
Ningbo 100 Ningbo 71.36 Establishment
TIMAGE retail
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Cosmetics Co.,
Ltd.
Explanation on the shareholding ratio in subsidiaries different from the voting ratio:
None
Basis for holding half or less voting rights but still controlling the investee, and holding more than half voting rights but not controlling the investee:
None
Basis for controlling the important structured entities included in the consolidation scope:
None
Basis for determining whether a company is an agent or a principal:
None
Other explanations:
None
(2).Important non-wholly owned subsidiaries
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Dividends declared and
Profit or loss attributable to
Shareholding ratio of the distributed to minority Balance of minority interests
Name of subsidiary minority shareholders in the
minority shareholders (%) shareholders in the current at the end of the period
current period
period
Ningbo TIMAGE
Cosmetics Co., Ltd.
Explanation on the shareholding ratio of minority shareholders in subsidiaries different from the voting ratio:
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(3).Major financial information of important non-wholly owned subsidiaries
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing balance Opening balance
Name of Non- Non- Non- Non-
Current Total Current Total Current Total Current Total
subsidiary current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Ningbo
TIMAGE 533,875, 2,681,67 536,557,62 137,677,74 3,464,42 141,142,16 409,860,63 3,037,28 412,897,92 97,988,69 3,464,42 101,453,12
Cosmetics 948.07 2.83 0.90 1.08 7.19 8.27 7.36 4.38 1.74 9.94 7.19 7.13
Co., Ltd.
Amount incurred in the current period Amount incurred in the previous period
Cash flows
Cash flows
Total Total generated
Name of subsidiary Operating generated from Operating
Net profit comprehensive Net profit comprehensive from
revenue operating revenue
income income operating
activities
activities
Ningbo TIMAGE
Cosmetics Co., Ltd.
Other explanations:
None
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(4).Major restrictions on using enterprise group assets and paying off enterprise group debts:
"□ Applicable" "√Not applicable"
(5).Financial support or other support provided to structured entities included in the scope of
consolidated financial statements:
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
still controlled
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
(1). Important joint ventures or associates
"□ Applicable" "√Not applicable"
(2). Major financial information of important joint ventures
"□ Applicable" "√Not applicable"
(3). Major financial information of important associates
"□ Applicable" "√Not applicable"
(4). Summary financial information of unimportant joint ventures and associates
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing balance/amount Opening balance/amount
incurred in the current period incurred in the previous period
Joint ventures:
Total book value of
investment
Total of the following items calculated according to the shareholding ratio
– Net profit -2,286.47 -6,059.09
– Other comprehensive
income
– Total comprehensive income -2,286.47 -6,059.09
Associates:
Total book value of
investment
Total of the following items calculated according to the shareholding ratio
– Net profit 1,446,514.36 -993,940.92
– Other comprehensive
income
– Total comprehensive income 1,446,514.36 -993,940.92
Other explanations
None
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(5). Explanation on major restrictions on the ability of joint ventures or associates to transfer
capital to the Company
"□ Applicable" "√Not applicable"
(6). Excess losses incurred by joint ventures or associates
"□ Applicable" "√Not applicable"
(7). Unconfirmed commitments related to investments in joint ventures
"□ Applicable" "√Not applicable"
(8). Contingent liabilities related to investments in joint ventures or associates
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
statements
Explanation on structured entities not included in the scope of consolidated financial statements:
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
XI. Government grants
"□ Applicable" "√Not applicable"
Reasons for failure to receive the expected amount of government grants at the expected time point
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount
included Amount
Amount of Other Related
in non- transferred
Items in new changes to
Opening operating in other Closing
financial subsidies in in the assets
balance revenue income in balance
statements the current current or
in the the current
period period income
current period
period
Related
Deferred
income
assets
Total 15,260,760.59 3,000,000.00 727,777.84 17,532,982.75 /
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Amount incurred in the current Amount incurred in the previous
Type
period period
Related to income 50,677,310.00 41,996,899.59
Related to assets 727,777.84 517,738.80
Total 51,405,087.84 42,514,638.39
Other explanations:
None
XII. Risks Related to Financial Instruments
"√ Applicable" "□ Not applicable"
The Company's risk management aims to reach balancing between risks and benefits, to minimize
the negative impact of risks on the Company's operating results, and to maximize the interests of
shareholders and other equity investors. Based on these risk management goals, the Company's basic
strategy for risk management is to determine and analyze various risks faced by the Company, establish
an appropriate risk tolerance bottom line and conduct risk management, and supervise various risks in a
timely and reliable manner to control the risks within a limited scope.
The Company faces various risks related to financial instruments in its daily activities, mainly
including credit risk, liquidity risk and market risk. The management has considered and approved the
policies governing these risks as outlined below.
(I) Credit risk
Credit risk refers to the risk that one party of a financial instrument fails to fulfill its obligations,
resulting in financial losses to the other party.
(1) Assessment method of credit risk
The Company, on each balance sheet date, assesses whether the credit risk of relevant financial
instruments has increased significantly since initial recognition. In determining whether the credit risk has
increased significantly since initial recognition, the Company takes into account the reasonable and well-
founded information available without unnecessary additional costs or efforts, including qualitative and
quantitative analyses based on historical data, external credit risk rating and forward-looking information.
The Company determines the changes that may result in default risk of financial instruments within their
expected duration by comparing the default risk of the financial instruments on the balance sheet date and
the initial recognition date based on an individual financial instrument or combined financial instruments
with similar credit risk characteristics.
The Company deems that the credit risk of the financial instruments has increased significantly if one
or more of the following quantitative or qualitative standards are reached:
the balance sheet date has increased by more than a certain proportion compared with that at the initial
recognition;
or financial conditions of the debtor and changes in the exiting or anticipated technology, market,
economic or legal environment which have a material adverse effect on the debtor's ability to make
repayment to the Company.
(2) Definitions of default and assets with credit impairment
If the financial instruments meet one or more of the following conditions, the Company defines the
financial assets as in default, with its standard consistent with the definition of credit impairment:
circumstances for the economic or contractual considerations in connection with the debtor’s financial
difficulties.
The key parameters for measurement of expected credit loss include the probability of default, loss
given default and default risk exposure. The Company builds the models of probability of default, loss
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
given default and default risk exposure considering the quantitative analysis of historical statistical data
(such as counterparty rating, guarantee type, category of collateral and pledge, repayment method) and
forward-looking information.
instrument loss reserve, refer to the particulars contained in “5. Accounts receivable”, “7. Receivables
financing” and “9. Other receivables” in “VII. Notes to the Items in Consolidated Financial Statements”,
“Section VIII Financial Report” of this Report.
The credit risk of the Company is derived mainly from the monetary capital and receivables. To
control the above related risk, the Company has respectively taken the following measures.
(1) Monetary capital
The bank deposit and other monetary capitals of the Company were deposited with financial
institutions with high credit rating. Therefore, the credit risk was low.
(2) Receivables
The Company continuously carries out credit assessments on customers who trade in credit.
According to the results of credit assessments, the Company deals with approved and credible customers,
and monitors the balance of its receivables, so as to prevent significant bad debt risk.
No guarantee is required as the Company only transacts with recognized and reputable third parties.
Credit risk concentration is managed on a per-customer basis. As of June 30, 2025, the Company had a
certain credit concentration risk of 93.97% (as of December 31, 2024: 95.05%) of the Company's accounts
receivable originating from the top five customers in the balance. The Company had no guarantee or other
credit enhancement on the balance of the accounts receivable.
The maximum credit risk exposure of the Company is the book value of the financial assets in the
balance sheet.
(II) Liquidity risk
Liquidity risk refers to the risk of shortage of funds when the Company fulfills its obligation to settle
by delivering cash or other financial assets. Liquidity risk may arise from the inability to sell financial
assets at fair value as soon as possible, or the counterparty's inability to pay off its contractual debts, or
early maturity of debt, or the inability to generate expected cash flows.
To control such risk, the Company applies various financing methods, such as bill settlements and
bank loans, in appropriate combination of long-term and short-term financing to optimize the financing
structure and keep the balance between financing sustainability and flexibility. The Company has obtained
lines of credit from several commercial banks to satisfy its working capital demand and capital expenditure.
Classification of financial liabilities by the remaining due days
Closing amount
Item Undiscounted Above 3
Book value Within 1 year 1-3 years
contract amount years
Accounts 1,052,738,520.0 1,052,738,520.0 1,052,738,520.0
payable 1 1 1
Other
payables
Bonds 870,278,751.5
payable 6
Lease 5,604,952.2
liabilities 9
Non-
current
liabilities
due
within
one year
Subtota 1,952,095,195.0 2,039,052,151.8 1,152,072,649.8 881,374,549.7 5,604,952.2
l 4 7 7 1 9
(Continued)
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Balance at the end of the previous year
Item Undiscounted Above 3
Book value Within 1 year 1-3 years
contract amount years
Accounts 676,388,126.1
payable 8
Other
payables
Bonds 876,981,635.8
payable 1
Lease 7,076,227.0
liabilities 0
Non-
current
liabilities 3,473,806.48 4,902,153.69 4,902,153.69
due within
one year
Subtota 1,562,605,328.6 1,675,014,671.4 883,465,781.8 7,076,227.0
l 9 1 1 0
(III) Market risk
Market risk refers to the risk of fluctuations in the fair value or future cash flow of financial
instruments due to changes in market prices. Market risks mainly include interest rate risk and foreign
exchange risk.
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flow of financial
instruments due to changes in market interest rates. Interest-bearing financial instruments with a fixed
interest rate expose the Company to the interest rate risk of fair value, and those with a floating interest
rate expose the Company to the interest rate risk of cash flow. The Company determines the proportion of
financial instruments with a fixed interest rate and a floating interest rate according to the market
environment, and maintains an appropriate combination of financial instruments through regular review
and monitoring.
Foreign exchange risk refers to the risk of fluctuations in the fair value or future cash flow of financial
instruments due to the change of foreign exchange rates. The risk of changes in foreign exchange rates
faced by the Company is mainly related to the Company's foreign currency assets and liabilities. The
Company carries out business in the Chinese mainland, and therefore has main activities valuated in RMB.
Therefore, the market risk of foreign exchange changes faced by the Company is minor.
For the details on foreign-currency monetary assets and liabilities of the Company at the end of the
period, refer to the particulars contained in “81. Foreign-currency monetary items” in “VII. Notes to the
Items in Consolidated Financial Statements”, “Section VIII Financial Report” of this Report.
(1). The Company carries out hedging business for risk management
"□ Applicable" "√Not applicable"
Other explanations
"□ Applicable" "√Not applicable"
(2). The Company carries out qualified hedging business and applies hedging accounting
"□ Applicable" "√Not applicable"
Other explanations
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(3). The Company carries out hedging business for risk management, and expects to achieve risk
management objectives, but does not apply hedging accounting
"□ Applicable" "√Not applicable"
Other explanations
"□ Applicable" "√Not applicable"
(1). Classification of transfer methods
"□ Applicable" "√Not applicable"
(2). Financial assets derecognized due to transfer
"□ Applicable" "√Not applicable"
(3). Financial assets transferred due to continued involvement
"□ Applicable" "√Not applicable"
Other explanations
"□ Applicable" "√Not applicable"
XIII. Disclosure of Fair Value
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing fair value
The first level of The second level The third level of
Item
fair value of fair value fair value Total
measurement measurement measurement
I. Continuous fair value
measurement
(I) Financial assets held for
trading
measured at fair value with
changes included in
current profit or loss
(1) Debt instrument
investment
(2) Equity instrument
investment
(3) Derivative financial
assets
designated as measured at
fair value with changes
included in current profit
or loss
(1) Debt instrument
investment
(2) Equity instrument
investment
(II) Other debt investments
(III) Other equity
instrument investments
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(IV) Investment property
held for transfer upon
appreciation
(V) Biological assets
assets
Receivables financing 1,221,062.00 1,221,062.00
Total assets continuously
measured at fair value
(VI) Financial liabilities
held for trading
measured at fair value with
changes included in
current profit or loss
Including: Trading bonds
issued
Derivative financial
liabilities
Others
designated as measured at
fair value with changes
included in current profit
or loss
Total liabilities
continuously measured at
fair value
II. Non-continuous fair
value measurement
(I) Assets held for sale
Total assets not
continuously measured at
fair value
Total liabilities not
continuously measured at
fair value
value measurement items
"□ Applicable" "√Not applicable"
parameters used in continuous and non-continuous second-level fair value measurement items
"□ Applicable" "√Not applicable"
parameters used in continuous and non-continuous third-level fair value measurement items
"√ Applicable" "□ Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
were no important changes in business environment, operating conditions, financial conditions and
external valuation of the investees, including Hangzhou Regenovo Biotechnology Co., Ltd. and
LIPOTRUE,S.L., the Company takes the investment cost as a reasonable estimate of fair value for
measurement. Due to the difference between the financial condition of the investee - Golong Holdings
Co., Ltd. and the expectations at the time of investment, the Company determines the fair value at the
end of the period based on the investee’s net assets as of the end of the period.
opening and closing book value for continuous third-level fair value measurement items
"□ Applicable" "√Not applicable"
within the current period, the reasons for the conversion and the policy for determining the
conversion time point
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
XIV. Related Parties and Related-Party Transactions
"□ Applicable" "√Not applicable"
Refer to the notes for the details on subsidiaries of the Company
"√ Applicable" "□ Not applicable"
For the details on subsidiaries of the Company, refer to the particulars contained in “X. Equity in
Other Entities”, “Section VIII Financial Report” of this Report.
Refer to the notes for details of the important joint ventures or associates of the Company
"√ Applicable" "□ Not applicable"
For the details on the important joint ventures or associates of the Company, refer to the particulars
contained in “X. Equity in Other Entities”, “Section VIII Financial Report” of this Report.
Information on other joint ventures or associates that have related party transactions with the Company
in the current period, or have balance resulting from related-party transactions with the Company in the
previous period is as follows
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Name of other related party Relationship between other related party and
the Company
Huzhou Beauty Town Technology Incubation Park
Others
Co., Ltd.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Ningbo Weiman Cosmetics Co., Ltd. [Note] Others
Beijing Xiushi Cultural Development Co., Ltd. Others
Hangzhou Regenovo Biotechnology Co., Ltd. Others
Hangzhou Slow Coral Cultural Tourism Planning and
Others
Design Co., Ltd.
Hangzhou Zheshang Enterprise Information
Consulting Partnership Enterprise (Limited Others
Partnership)
Proya Foundation Others
Minority shareholder of subsidiary Hong
PARISEZHAN HK LIMITED
Kong Keshi Trading Co., Ltd.
Same actual controller as PARISEZHAN
EURL PHARMATICA
HK LIMITED
Same actual controller as PARISEZHAN
SARL ORTUS
HK LIMITED
Same actual controller as PARISEZHAN
S.A.S AREDIS
HK LIMITED
Minority shareholder of subsidiary OR
Beauty Hi-tech Innovation Co., Ltd.
Off&Relax
[Note] Ningbo Weiman Cosmetics Co., Ltd. was originally a company controlled by the associate
Jiaxing Woyong Investment Partnership (Limited Partnership). In June 2025, the Company transferred
its equity interest in the associate Jiaxing Woyong Investment Partnership (Limited Partnership) to
external parties.
Other explanations
None
(1). Related-party transactions in purchasing and selling goods, and rendering and receiving labor
services
Statement of purchasing goods/receiving labor services
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount Approved Exceeding the Amount
Details of
incurred in transaction transaction limit incurred in
Related parties related-party
the current limit (if or not (if the previous
transactions
period applicable) applicable) period
Beijing Xiushi
Cultural Promotion
Not applicable No 4,716,981.14
Development services
Co., Ltd.
Huzhou
Beauty Town
Property
Technology 175,085.00 Not applicable No 157,873.57
services
Incubation
Park Co., Ltd.
Hangzhou
Slow Coral
Cultural
Promotion
Tourism Not applicable No 107,639.89
services
Planning and
Design Co.,
Ltd.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Beauty Hi-
Agent
tech
operation 34,519.05 Not applicable No 152,982.54
Innovation
service fee
Co., Ltd.
Hangzhou
Regenovo
Testing model 30,578.31 Not applicable No
Biotechnology
Co., Ltd.
Hangzhou
Zheshang
Enterprise
Information Association
Consulting membership 20,000.00 Not applicable No
Partnership fee
Enterprise
(Limited
Partnership)
Statements of sales of goods/rendering of services
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Details of related-party Amount incurred in the Amount incurred in the
Related parties
transactions current period previous period
Ningbo Weiman Cosmetics
Sales of goods 464.60
Co., Ltd.
Proya Foundation Sales of goods 86,283.18
Explanation on related-party transactions in purchasing and selling goods, and rendering and receiving
labor services
"□ Applicable" "√Not applicable"
(2). Related entrusted management/contracting and entrusted management/outsourcing
Statement of entrusted management/contracting of the Company:
"□ Applicable" "√Not applicable"
Explanation on related trusteeship/contracting
"□ Applicable" "√Not applicable"
Statement of entrusted management/outsourcing of the Company:
"□ Applicable" "√Not applicable"
Explanation on related management/outsourcing
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(3). Information of related lease
The Company as the lessor:
"□ Applicable" "√Not applicable"
The Company as the lessee:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount incurred in the current period Amount incurred in the previous period
Rent
Rent
expenses
expenses
Variable of short- Variable
of short-
lease term lease
term leases
payments Interest leases and payments Interest
and low- Right-of- Right-of-
Name of Types of not included expenses low-value not included expenses
value asset Rent use Rent use
lessor leased assets in the on lease asset in the on lease
leases paid assets paid assets
measurement liabilities leases measurement liabilities
subject to increased increased
of lease assumed subject to of lease assumed
simplified
liabilities (if simplified liabilities (if
treatment
applicable) treatment applicable)
(if
(if
applicable)
applicable)
Huzhou
Beauty
Town
Technology Venue 247,964.48 495,928.96 7,222.26
Incubation
Park Co.,
Ltd.
Explanation on related lease
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(4). Information on related guarantees
The Company as the guarantor
"□ Applicable" "√Not applicable"
The Company as the guarantee
"□ Applicable" "√Not applicable"
Explanation on related guarantees
"□ Applicable" "√Not applicable"
(5). Borrowing of related party funds
"□ Applicable" "√Not applicable"
(6). Information on asset transfer and debt restructuring of related parties
"□ Applicable" "√Not applicable"
(7). Compensation of key management personnel
"√ Applicable" "□ Not applicable"
Unit: RMB '0,000 Currency: RMB
Amount incurred in the current Amount incurred in the
Item
period previous period
Compensation of key management
personnel
Note: The above compensation excludes the relevant compensation recognized by share-based payment
(8). Other related-party transactions
"√ Applicable" "□ Not applicable"
During the current period, the Company donated materials totaling RMB38,539.50 to the Proya
Foundation.
related parties
(1). Items receivable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing balance Opening balance
Project name Related parties Provision for Provision for bad
Book balance Book balance
bad debts debts
Prepayments
Huzhou Beauty
Town Technology
Incubation Park
Co., Ltd.
Subtotal 247,964.48
Other
receivables
Huzhou Beauty
Town Technology
Incubation Park
Co., Ltd.
EURL
PHARMATICA 18,397,282.14 18,397,282.14 18,022,225.76 18,022,225.76
[Note]
Beauty Hi-tech 76,207.38 76,207.38
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Innovation Co., Ltd.
Subtotal 18,528,850.34 18,528,850.34 18,230,001.34 18,230,001.34
[Note] Other receivables from EURL PHARMATICA are the consolidated statistics of receivables
from PAN Xiang and receivables from EURL PHARMATICA, PARISEZHAN HK LIMITED, SARL
ORTUS, and S.A.S AREDIS controlled by PAN Xiang.
(2). Items payable
"□ Applicable" "√Not applicable"
(3). Other items
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
XV. Share-based Payments
(1). Detailed Information
"√ Applicable" "□ Not applicable"
Quantity unit: Share Amount unit: Yuan Currency: RMB
Categories of Awarded in the Exercised in the Released in the Invalid in the current
granted current period current period current period period
objects Number Amount Number Amount Number Amount Number Amount
Management 236,936 14,606,721.45
R&D
personnel
Sales
specialists
Total 242,424 14,945,047.78
(2). Outstanding stock options or other equity instruments at the end of the period
"√ Applicable" "□ Not applicable"
Outstanding stock options at the end of Outstanding other equity instruments
Categories of the period at the end of the period
granted objects Scope of exercise Remaining term Scope of exercise Remaining term
price of contract price of contract
Management Not applicable Not applicable RMB78.56/share 13 months
R&D personnel Not applicable Not applicable RMB78.56/share 13 months
Sales specialists Not applicable Not applicable RMB78.56/share 13 months
Other explanations
On July 25, 2022, the Company, according to the Proposal on the 2022 Restricted Shares Incentive
Plan of the Company (Draft) and Its Summary deliberated and approved at the First Extraordinary General
Meeting of Shareholders of the Company in 2022, under the Incentive Plan, proposed to grant up to
the incentive objects are 101 persons including senior management, middle management and core
backbone personnel of the Company (excluding independent directors, supervisors and shareholders or
actual controllers holding more than 5% of the Company's shares alone or in total, as well as their spouses,
parents and children). The grant price is RMB78.56 per share. The subject shares under the Incentive Plan
are derived from the A-share ordinary shares of the Company privately issued by the Company to the
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
incentive objects. The validity period of the Incentive Plan begins from the date when the registration of
the grant of restricted shares is completed to the date when all the restricted shares granted to the incentive
objects are released or repurchased and de-registered, in no case taking longer than 48 months. The granted
restricted shares will be released in three tranches (30%, 30%, 40%) over 36 months after the expiration
of 12 months from the date of the initial grant of the restricted shares. The performance condition for the
first release period is that: On the basis of the operating revenue and net profit in 2021, the growth rate of
operating revenue and net profit in 2022 was no less than 25% and 25%, respectively. The performance
condition for the second release period is that: On the basis of the operating revenue and net profit in 2021,
the growth rate of operating revenue and net profit in 2023 was no less than 53.75% and 53.75%,
respectively. The performance condition for the third release period is that: On the basis of the operating
revenue and net profit in 2021, the growth rate of operating revenue and net profit in 2024 was no less
than 87.58% and 87.58%, respectively.
On September 8, 2023, according to the Proposal on Satisfying the Conditions for Release from Sales
Restrictions in the First Release Period under the 2022 Restricted Shares Incentive Plan deliberated and
approved at the 14th meeting of the third session of Board of Directors of the Company in 2023, the
Company released the 811,398 restricted shares held by the incentive objects who had satisfied the first
release conditions (and issued 0.40 shares for every one share to all shareholders through capitalization of
the capital reserve, so this number is the number of shares after the capitalization of the capital reserve).
The circulating date of the sales was September 26, 2023.
On October 24, 2024, according to the Proposal on Satisfying the Conditions for Release from Sales
Restrictions in the Second Release Period under the 2022 Restricted Shares Incentive Plan deliberated
and approved at the 2nd meeting of the fourth session of Board of Directors of the Company, a total of
per share; all quantities reflect post-adjustment figures) that met the release conditions for the second
release period were unlocked. The shares became eligible for trading on October 31, 2024.
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Equity-settled share-based payment object
Determination method of the fair value of equity Determined as per the share price on the grant
instruments on the grant date date and the grant price of restricted shares
Important parameters of fair value of equity Determined as per the share price on the grant
instruments on the grant date date and the grant price of restricted shares
Basis for determining the quantity of feasible Determined according to the estimated
equity instruments performance conditions in the release period
Reason for significant difference with estimation
in the current period and estimation in the previous Not applicable
period
Cumulative amount of equity-settled share-based
payments included in the capital reserve
Other explanations
None
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Categories of granted objects Equity-settled share-based Cash-settled share-based
payment expenses payment expenses
Management -7,764,649.82
R&D personnel 841,461.78
Sales specialists 747,859.78
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Total -6,175,328.26
Other explanations
None
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
XVI. Commitments and Contingencies
"√ Applicable" "□ Not applicable"
Important external commitments, nature and amount on the balance sheet date
As of June 30, 2025, the investment projects with raised funds conducted by the Company through
public issuance of convertible bonds were as follows:
Unit: RMB '0,000
Committed
Cumulative
investment
Total investment
amount of Project filing or approval
Project name investment amount as
raised funds document No.
amount of end of
upon
the period
adjustment
Huzhou Production Base
Expansion Project (Phase 43,752.54 33,850.00 34,695.75 2011-330502-04-01-178735
I)
Longwu R&D Center
Construction Project
Information System
Upgrade Project
Replenishment of
working capital
Total 94,766.49 74,450.87 73,979.71
(1). Important contingencies on the balance sheet date
"□ Applicable" "√Not applicable"
(2). Even if the Company does not have important contingencies that need to be disclosed, it must
also state:
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
XVII. Events after the balance sheet date
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Proposed profits or dividends to be
distributed
Profits or dividends declared for
distribution upon approval
According to the 6th meeting of the fourth session of Board of Directors of the Company held on August
shares to all registered shareholders, based on the total share capital as of the equity registration date for
the implementation of the profit distribution. Based on the total share capital of 396,247,646 shares as of
June 30, 2025, and after deducting 2,210,825 shares held in the Company’s special securities account for
repurchase, the estimated aggregate cash dividend to be distributed will be RMB315,229,456.80 (tax
inclusive). Prior to the equity registration date for the implementation of the profit distribution, if the
Company’s total share capital changes due to the conversion of convertible bonds or other reasons, the
distribution ratio per share will remain unchanged, and the total distribution amount will be adjusted
accordingly. The above matter is still subject to approval by the General Meeting of Shareholders.
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
XVIII. Other Important Matters
(1). Retrospective restatement method
"□ Applicable" "√Not applicable"
(2). Prospective application method
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
(1). Exchange of non-monetary assets
"□ Applicable" "√Not applicable"
(2). Replacement of other assets
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(1). Determination basis and accounting policy of reportable segment
"√ Applicable" "□ Not applicable"
The Company's primary business is the research and development, production and sale of cosmetics.
The Company regards this business as a whole to implement management and evaluate business results.
Therefore, the Company has no need to disclose segment information. For the details on revenue
breakdown of the Company, refer to the particulars contained in “61. Operating revenue and operating
costs” in “VII. Notes to the Items in Consolidated Financial Statements”, “Section VIII Financial Report”
of this Report.
The details of primary operating revenue and primary business cost of the Company classified by
brands are as follows:
January - June 2025
Primary operating
Brand Primary business cost Gross profit
revenue
PROYA 3,977,982,163.00 1,035,028,577.81 2,942,953,585.19
Other brands 1,377,950,990.77 388,998,410.73 988,952,580.04
Subtotal 5,355,933,153.77 1,424,026,988.54 3,931,906,165.23
January - June 2024
Primary operating
Brand Primary business cost Gross profit
revenue
PROYA 3,980,976,357.20 1,199,974,564.49 2,781,001,792.71
Other brands 1,013,472,071.05 305,925,407.83 707,546,663.22
Subtotal 4,994,448,428.25 1,505,899,972.32 3,488,548,455.93
(2). Financial information of the reportable segment
"□ Applicable" "√Not applicable"
(3). If the Company has no reportable segment, or cannot disclose the total assets and liabilities of
each reportable segment, the reasons must be explained
"□ Applicable" "√Not applicable"
(4). Other explanations
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
XIX. Notes on Main Items of the Financial Statements of the Parent Company
(1). Disclosed by account age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Account age Closing book balance Opening book balance
Within 1 year (inclusive) 680,502,036.24 908,227,207.92
Including: Within 1 year 680,502,036.24 908,227,207.92
Above 3 years 1,772,415.18
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Above 5 years
Total 758,074,224.18 941,872,669.71
(2). Disclosed by classification of bad debt provisions
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision for bad Provision for bad
Book balance Book balance
Category debts Book debts Book
Percentage Provision value Percentage Provision value
Amount Amount Amount Amount
(%) ratio (%) (%) ratio (%)
Provision for
bad debts
accrued
individually
Including:
Provision for
bad debts 758,074,2 60,615,01 941,872, 56,186,86
accrued by 24.18 7.48 669.71 5.41
portfolio
Including:
Aging 758,074,2 100.00 60,615,01 8.00 697,4 941,872, 100.00 56,186,86 5.97 885,6
portfolio 24.18 7.48 59,20 669.71 5.41 85,80
Total 24.18 7.48 59,20 669.71 5.41 85,80
Provision for bad debts accrued individually:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued by portfolio:
"√ Applicable" "□ Not applicable"
Provision by portfolio: aging portfolio
Unit: Yuan Currency: RMB
Closing balance
Item
Book balance Provision for bad debts Provision ratio (%)
Within 1 year 680,502,036.24 34,025,100.82 5.00
Above 3 years 1,772,415.18 1,772,415.18 100.00
Total 758,074,224.18 60,615,017.48 8.00
Explanation on provision for bad debts accrued by portfolio:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued according to the general model of expected credit loss
"□ Applicable" "√Not applicable"
Classification basis and provision ratio of provision for bad debts for each stage
None
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Explanation on significant changes in book balance of accounts receivable with changes in provision for
loss in the current period:
"□ Applicable" "√Not applicable"
(3). Information on provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount of changes in the current period
Opening Withdrawal Charge- Closing
Category Other
balance Provision or write- off or balance
changes
back write-off
Provision
for bad
debts 56,186,865.41 4,428,152.07 60,615,017.48
accrued by
portfolio
Total 56,186,865.41 4,428,152.07 60,615,017.48
Among them, significant amount of bad debt provision withdrawn or written back in the current period:
"□ Applicable" "√Not applicable"
Other explanations
None
(4). Information on accounts receivable actually written off in the current period
"□ Applicable" "√Not applicable"
Among them, information on accounts receivable significantly written off
"□ Applicable" "√Not applicable"
Explanation on the write-off of the accounts receivable:
"□ Applicable" "√Not applicable"
(5). Information on accounts receivable and contract assets of the top five closing balances collected
by debtor
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Proportion of
Closing total closing
Closing Closing Closing
balance of balance of
Company balance of balance of balance of
accounts accounts
name accounts contract provision for
receivable and receivable
receivable assets bad debts
contract assets and contract
assets (%)
Proya
(Zhejiang)
Cosmetics
Co., Ltd.
Huzhou
Hapsode
Trading Co.,
Ltd.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Ningbo
Tangyu
Trading Co.,
Ltd.
Hangzhou
Proya
Commercial 42,784,581.29 42,784,581.29 5.64 9,731,993.12
Management
Co., Ltd.
Huzhou
UZERO
Trading Co.,
Ltd.
Total 665,113,801.66 665,113,801.66 87.74 51,724,963.05
Other explanations
None
Other explanations:
"□ Applicable" "√Not applicable"
Presentation by item
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 154,904,408.59 41,361,558.56
Total 154,904,408.59 41,361,558.56
Other explanations:
"□ Applicable" "√Not applicable"
Interest receivable
(1). Classification of interest receivable
"□ Applicable" "√Not applicable"
(2). Significant overdue interest
"□ Applicable" "√Not applicable"
(3). Disclosed by classification of bad debt provisions
"□ Applicable" "√Not applicable"
Provision for bad debts accrued individually:
"□ Applicable" "√Not applicable"
Explanation on provision for bad debts by item:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued by portfolio:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(4). Provision for bad debts accrued according to the general model of expected credit loss
"□ Applicable" "√Not applicable"
(5). Information on provision for bad debts
"□ Applicable" "√Not applicable"
Among them, significant amount of bad debt provision withdrawn or written back in the current period:
"□ Applicable" "√Not applicable"
Other explanations:
None
(6). Information on interest receivable actually written off in the current period
"□ Applicable" "√Not applicable"
Among them, information on interest receivable significantly written off
"□ Applicable" "√Not applicable"
Explanation on write-off:
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
Dividends receivable
(7). Dividends receivable
"□ Applicable" "√Not applicable"
(8). Important dividends receivable aged over one year
"□ Applicable" "√Not applicable"
(9). Disclosed by classification of bad debt provisions
"□ Applicable" "√Not applicable"
Provision for bad debts accrued individually:
"□ Applicable" "√Not applicable"
Explanation on provision for bad debts by item:
"□ Applicable" "√Not applicable"
Provision for bad debts accrued by portfolio:
"□ Applicable" "√Not applicable"
(10). Provision for bad debts accrued according to the general model of expected credit loss
"□ Applicable" "√Not applicable"
(11). Information on provision for bad debts
"□ Applicable" "√Not applicable"
Among them, significant amount of bad debt provision withdrawn or written back in the current period:
"□ Applicable" "√Not applicable"
Other explanations:
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
None
(12). Dividends receivable actually written off in the current period
"□ Applicable" "√Not applicable"
Among them, information on dividends receivable significantly written off
"□ Applicable" "√Not applicable"
Explanation on write-off:
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
Other receivables
(13). Disclosed by account age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Account age Closing book balance Opening book balance
Within 1 year (inclusive) 142,194,844.51 19,581,322.85
Including: Within 1 year 142,194,844.51 19,581,322.85
Above 3 years 19,7352,122.94 178,486,303.90
Above 5 years
Total 372,788,036.26 244,663,333.16
(14). Information on classification by nature of payment
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Nature of payment Closing book balance Opening book balance
Current accounts receivable 256,404,842.73 236,519,811.73
Equity transfer payment 107,840,000.00
Security deposits 6,704,600.05 6,659,600.05
Suspense payment receivables 1,193,626.89 525,933.76
Others 644,966.59 957,987.62
Total 372,788,036.26 244,663,333.16
(15). Information on provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
First stage Second stage Third stage
Expected credit loss Expected credit loss
Expected
Provision for bad for the entire for the entire
credit losses Total
debts duration (credit duration (credit
over the next
impairment not impairment
occurred) occurred)
Balance as of
January 1, 2025
Balance as of
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
January 1, 2025 in
the current period
– Transferred into
-799,692.97 799,692.97
the second stage
– Transferred into
-9,432,909.52 9,432,909.52
the third stage
– Transferred
back to the second
stage
– Transferred
back to the first
stage
Amount accrued
in the current 6,933,419.06 18,478,881.02 -10,830,447.01 14,581,853.07
period
Amount written-
back in the current
period
Amount charged-
off in the current
period
Amount written-
off in the current
period
Other changes
Balance as of
June 30, 2025
Classification basis and provision ratio of provision for bad debts for each stage
None
Explanation on significant changes in book balance of other receivables with changes in provision for loss
in the current period:
"□ Applicable" "√Not applicable"
The amount of provision for bad debts in the current period and the basis for evaluating whether the
credit risk of financial instruments increases significantly:
"□ Applicable" "√Not applicable"
(16). Information on provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount of changes in the current period
Opening Withdrawal Charge- Closing
Category Other
balance Provision or write- off or balance
changes
back write-off
Provision
for bad
debts
accrued
by
portfolio
Total 203,301,774.60 14,581,853.07 217,883,627.67
Among them, significant amount of bad-debt provision written back or withdrawn in the current period:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Other explanations
None
(17). Information on other receivables actually written-off in the current period
"□ Applicable" "√Not applicable"
Among them, information on write-off of other important receivables:
"□ Applicable" "√Not applicable"
Explanation on write-off of other receivables:
"□ Applicable" "√Not applicable"
(18). Information on other receivables of the top five closing balances collected by debtor
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
As a proportion of
Closing balance
Company Closing total closing Nature of
Account age of provision for
name balance balance in other payment
bad debts
receivables (%)
Hong Kong
Current
Xinghuo
Industry
receivable
Limited
Zhejiang
Equity
Dadao Qiyun Within 1
Group Co., year
payment
Ltd.
Boya (Hong
Kong) Current
Above 3
Investment 40,331,520.00 10.82 accounts 40,331,520.00
years
Management receivable
Co., Limited
Ningbo
Current
Tangyu Within 1
Trading Co., year
receivable
Ltd.
Ningbo
Current
Jingzhe Within 1
Cosmetics Co., year
receivable
Ltd.
Total 327,238,378.61 87.77 / / 185,270,694.70
[Note 1] RMB23,909,938.64 with an account age within 1 year, RMB2,538,103.00 with an account
age of 1 to 2 years, RMB10,296,150.57 with an account age of 2 to 3 years, and RMB131,922,145.54
with an account age of above 3 years.
(19). Presented as other receivables due to centralized fund management
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investments in subsidiaries 331,421,431.07 43,020,000.00 288,401,431.07 341,632,254.52 43,020,000.00 298,612,254.52
Investments in associates and joint
ventures
Total 422,336,117.66 124,462,213.22 297,873,904.44 534,165,283.44 124,462,213.22 409,703,070.22
(1). Investments in subsidiaries
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Opening Changes in the current period Closing
Opening Closing
balance of balance of
Investee balance (book Additional Investment Provision for balance (book
provision for Others provision for
value) investment decrease impairment value)
impairment impairment
Hangzhou Proya Trade
Co., Ltd.
Hanna Cosmetics Co., Ltd. 2,094,048.00 2,094,048.00
Zhejiang Meiligu
Electronic Commerce Co., 50,688,608.83 -1,795,291.12 48,893,317.71
Ltd.
Yueqing Laiya Trading
Co., Ltd.
Hapsode (Hangzhou)
Cosmetics Co., Ltd.
Mijing Siyu (Hangzhou)
Cosmetics Co., Ltd.
Huzhou UZERO Trading
Co., Ltd.
Huzhou Niuke Technology
Co., Ltd.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Hangzhou Proya
Commercial Management 5,000,000.00 5,000,000.00
Co., Ltd.
Shanghai Zhongwen
Electronic Commerce Co., 6,022,092.04 6,022,092.04
Ltd.
Hong Kong Keshi Trading
Co., Ltd.
Hong Kong Xinghuo
Industry Limited
Ningbo TIMAGE
Cosmetics Co., Ltd.
Ningbo Keshi Trading
Limited
Zhejiang Beauty Cosmetics
Co., Ltd.
Ningbo Proya Enterprise
Consulting Management 47,884,323.09 -4,173,285.04 43,711,038.05
Co., Ltd.
Hangzhou Yizhuo Culture
Media Co., Ltd.
Hangzhou Oumisi Trading
Co., Ltd.
Hangzhou Weiluoke
Cosmetics Co., Ltd.
Singuladerm (Hangzhou)
Cosmetics Co., Ltd.
Proya (Hainan) Cosmetics
Co., Ltd.
Hangzhou TIMAGE
Cosmetics Co., Ltd.
Hubei Laibo Technology
Co., Ltd.
PROYA PTE. LTD. 3,604,900.00 3,604,900.00
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Ningbo Jingzhe Cosmetics
Co., Ltd.
PROYA EUROPE SAS 4,337,190.00 4,532,003.72 8,869,193.72
Xuzhou Boya Enterprise
Management Co., Ltd.
Total 298,612,254.52 43,020,000.00 -28,840.24 10,181,983.21 288,401,431.07 43,020,000.00
(2). Investments in associates and joint ventures
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Changes in the current period
Recognized
Opening Closing
Opening investment Other Other Declaration Closing
Investment balance of Provision balance of
balance (book Additional Investment gain and loss comprehensive changes of cash balance
entity provision for for Others provision for
value) investment decrease under the income in dividends (book value)
impairment impairment impairment
equity adjustments equity or profits
method
I. Joint Venture
Huzhou Panrui
Industry
Investment
Partnership
(Limited
Partnership)
Subtotal 3,263,226.71 -2,286.47 3,260,940.24
II. Associates
Xiongke
Culture Media
(Hangzhou)
Co., Ltd.
Jiaxing
Woyong
Investment
Partnership
(Limited
Partnership)
Zhuhai
Haishilong
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
Biotechnology
Co., Ltd.
Beijing Xiushi
Cultural
Development
Co., Ltd.
Subtotal 107,827,588.99 81,442,213.22 103,062,570.22 1,446,514.36 6,211,533.13 81,442,213.22
Total 111,090,815.70 81,442,213.22 103,062,570.22 1,444,227.89 9,472,473.37 81,442,213.22
(3). Information on impairment test of long-term equity investments
"□ Applicable" "√Not applicable"
Other explanations:
"□ Applicable" "√Not applicable"
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
(1). Information on operating revenue and operating costs
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount incurred in the current Amount incurred in the previous
Item period period
Revenue Cost Revenue Cost
Primary business 2,250,478,947.62 888,636,815.19 2,457,017,125.15 1,152,454,471.96
Other business 15,287,216.22 3,553,595.46 18,373,463.43 4,933,709.68
Total 2,265,766,163.84 892,190,410.65 2,475,390,588.58 1,157,388,181.64
(2). Breakdown of operating revenue and operating costs
"□ Applicable" "√Not applicable"
Other explanations
"□ Applicable" "√Not applicable"
(3). Explanation on performance obligations
"□ Applicable" "√Not applicable"
(4). Explanation on remaining performance obligations allocated
"□ Applicable" "√Not applicable"
(5). Significant contract changes or significant transaction price adjustments
"□ Applicable" "√Not applicable"
Other explanations:
Amount for the current period Amount for the same period last year
Item
Revenue Cost Revenue Cost
Products sales 2,250,478,947.62 888,636,815.19 2,457,017,125.15 1,152,454,471.96
Others 1,659,268.85 632,684.33 2,502,856.41 1,393,243.82
Subtotal 2,252,138,216.47 889,269,499.52 2,459,519,981.56 1,153,847,715.78
Amount for the
Amount for the
Item same period last
current period
year
Income recognized at a certain point 2,250,478,947.62 2,457,017,125.15
Income recognized in a certain period
Subtotal 2,250,478,947.62 2,457,017,125.15
liabilities is RMB49,339,586.16.
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Amount incurred in the Amount incurred in the
Item
current period previous period
Long-term equity investment income
calculated by cost method
Long-term equity investment income
calculated by equity method
Investment income from disposal of
-5,404,553.44 3,992,247.56
long-term equity investment
Investment income of held-for-trading
financial assets during the holding
period
Dividend income from other equity
instrument investments during the
holding period
Interest income from debt investment
during the holding period
Interest income from other debt
investments during the holding period
Investment income from disposal of
held-for-trading financial assets
Investment income from disposal of
other equity instrument investments
Investment income from disposal of
debt investment
Investment income from disposal of
other debt investments
Gains from debt restructuring
Total 5,239,832.73 1,838,583.82
Other explanations:
None
"□ Applicable" "√Not applicable"
XX. Supplementary information
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
Item Amount Notes
Gains or losses arising from disposal of non-
current assets, including write-offs of provision -346,504.18
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 national 50,677,310.00
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
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
liabilities held by non-financial enterprises, as
well as gains or losses 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 compensation 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
-683,056.90
besides the above items
Other gains and losses items that conform to the
definition of non-recurring gains and losses
Less: Effect of income tax 12,529,617.88
Impact of minority interests (after tax) 9,207,932.25
Total 27,910,198.79
Proya Cosmetics Co., Ltd. Semi-Annual Report 2025
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"
Other explanations
"□ Applicable" "√Not applicable"
"√ Applicable" "□ Not applicable"
Earnings per share
Profit during the Reporting Weighted average
Period ROE (%) Basic earnings per Diluted earnings per
share share
Net profits attributable to
ordinary shareholders of the 14.35 2.02 2.02
Company
Net profits attributable to
ordinary shareholders of the
Company net of non-recurring
gains and losses
"□ Applicable" "√Not applicable"
"□ Applicable" "√Not applicable"
Chairman: HOU Juncheng
Date of submission approved by the Board of Directors: August 25, 2025
Revision information
"□ Applicable" "√Not applicable"
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