Po Laiya Cosmetics Co., Ltd.

Company code: 603605 company referred to: Po Laiya


1 This report summary from the annual report, a comprehensive understanding of the company’s operating results, financial condition and future development plans, investors should carefully read the annual report to the Shanghai Stock Exchange, China Securities Regulatory Commission designated sites and other media.

2 board of supervisors and directors, supervisors and senior management to ensure the real content of the annual report, accurate and complete, no false record, misleading statements or material omissions, and assume individual and joint liability.

3 All directors attended the Board meeting.

4 Pan-China Certified Public Accountants (special general partnership) Company issued a standard unqualified audit report of.

5 by the Board considered the report of the profit distribution plan or common reserves

The total share capital of the dividend payment record date for the base, distribution of 3.1 yuan cash dividend (including tax) in registered shareholders for every 10 shares to shareholders of record date, the total cash dividend of 62 million (including tax), not to reserve capitalization no bonus.

Two Company Profile

1 Introduction

2 Report of the company’s main business profile

The company is mainly engaged in cosmetics product development, production and sales, currently owns “Po Laiya”, “excellent capital Levin,” “Han Ya”, “You elegant”, “cat language Rose”, “Yue Fu Wendy” and other brands. The company differentiated brand positioning to meet different ages, different consumer demand, preferences, covering skin care, makeup, cosmetics and other personal care cleaning areas, constructed covering cosmetic specialty stores, supermarkets, commerce, single-brand stores, etc. multi-channel sales network, through continuous technological innovation, product optimization and marketing innovation, is committed to being a world-class beauty business.

The company’s brand as follows:

Po Laiya – Ocean skin care brand, marine research focused on skin care. Including its “core muscles Aqua Series”, “good white core muscle Series”, “spring core run muscle Series”, “enabling fresh color series”, “Marine Sun Series”, “Po Laiya Mask Series” and other series of multi- product.

Excellent capital Levin – raising tea skin care brand, to explore the natural tea, take the essence of tea can provide effective elements of skin care products.

Han Ya – high-performance skincare brand, according to South Korea’s advanced skin science and safety of natural materials, provide targeted solutions for the Chinese women’s skin.

You elegant – the pursuit of “light make-up, breathing” the idea of ​​creating “perfectly clear sense of” fashion make-up brand.

Cat language roses – roses with natural extracts as the base, to create a sweet love natural makeup line.

Wendy Yue Fu – custom designed for young skin, relaxed and happy young people bring beauty and fashion.

According to China Securities Regulatory Commission promulgated the “listed company Industry Classification Guide”, Industry chemical raw materials and chemical products industry (classification code: C26); according to “Economic Industrial Classification and Code” (GB / T 4754-2011), company is engaged in manufacturing household chemical products (C268), broken down as cosmetics manufacturing industry (C2682).

3 Principal Accounting Data and Financial Indicators

3.1 nearly three years of Major accounting data and financial indicators

Unit: Currency: RMB

Quarterly reporting period 3.2 Major accounting data

Note: The main reason for operating income and net profit attributable to fluctuations between the quarters of the shareholders of the listed company: the cosmetics industry vulnerable to seasonal factors and the impact of holiday activities, quarterly sales fluctuated changes, such as the fourth quarter focused on the National Day, two XI, double twelve and other peak sales period, so the fourth quarter sales and net profit were higher than the other quarters.

Quarterly data has been disclosed in periodic reports data discrepancies explained

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4.1 the number of preferred shareholders and ordinary shareholders voting rights restored and the top 10 shareholders of the table

Unit: shares

Block diagram of the controlling relationship between the Company and the controlling shareholder 4.2

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Block diagram of the controlling relationship between the Company and the actual controller 4.3

4.4 reporting period the total number of preferred shareholders and top 10 shareholders

5 cases of corporate bonds

Three Operation Discussion and Analysis

Main operations in the report period 1

(A) Research and Innovation

During the reporting period, the company continued to improve consumer demand-oriented, a combination of technological innovation system, has made great achievements in research and innovation:

(1) company research cooperation projects “high-value seaweed polysaccharide processing technology and industrial applications,” was the year 2017 the National Business and Technology Progress Award.

(2) “post-doctoral research station,” approved the establishment of the company to further enhance the level of scientific research, and enhance the company’s core competitiveness.

(3) the company was recognized as 2017 “Zhejiang business model patents.” As of the reporting period, the company owns 261 national patents, including 37 invention patents, 28 utility model patents and 196 design patents. Among them, in 2017 the newly acquired seven patents for invention, and submitted 15 new patent applications for invention. The company patented technology for the efficient conversion, completed during the year 2017 more than 200 new product development.

(4) 2017, Po Laiya third identified by “high-tech enterprise” status.

(5) as the chairman of the Technical Committee for Standardization, Zhejiang cosmetic, 2017, the company involved in the development of the two national standards: namely, GB / T 18670 “cosmetic category” and GB / T 35889 “Eyeliner (cream)”; a industry standard: QB / T 2872 “mask.” The company has always been at the forefront of the industry, leading the development of the industry.

(6) On the basis of research projects, “citrus seed extract limonene as a cosmetic alternative preservatives technology research” and three projects for the record industry in Zhejiang Province new product development projects; currently developing major new projects are: “Anti-allergy composition hydroxyphenyl propionamide acid molecule total synthesis and modification”, “technology of lyophilized collagen scaffold polypeptide instant load block”, “enzymatic synthesis green β- nicotinamide mononucleotide art Study “,” all-trans-resveratrol prepared by chiral synthesis and Research whitening temperature sensitive liposomes “,” biosynthetic digluconate yl gallate technology “, etc., and the efficacy of anti-hair loss.

(Ii) the supply, production, quality assurance

During the reporting period, the company continued to optimize the supply chain system, demand planning, purchase orders, production orders, inventory, warehousing, logistics and cost accounting integrated management through enhanced information exchange and data sharing, improve the service between the upstream and downstream quality and speed of response, accurate and efficient form of market support capabilities.

(1) Company continued to optimize supplier base, continue to improve supplier selection, the provisions of all aspects of the bidding process, etc., selection of international and domestic industry’s leading suppliers, with strategic cooperation, which distributed more than 20 raw materials in Europe and America, Japan and other countries.

(2) the company make full use of the world’s cutting-edge equipment and technology, such as the Swiss precision weighing intelligent management system, Germany’s top emulsification equipment, high pressure homogenization equipment nano Switzerland, France automatic water cream filling line, Italy automatic laminator, etc., from the source to ensure product quality.

(3) Company production base continue to uphold the concept of “low-carbon environmental protection, green manufacturing”, the use of “sewage treatment plant” in line with the national emission standard, the use of “air compressor heat recovery system” heat recovery; the reporting period, upgrade conversion “solar-assisted heating system” to reduce emissions; built the “CIP automatic cleaning station cleaning tank,” environmental health; officially put into use “PV” project, green production further.

(4) During the reporting period, the company actively carry out meticulous management, won the “2017 Innovation Management, Zhejiang fine business model.” By actively implementing intelligent manufacturing machinery and substitutions and other projects, intelligent transformation mask workshop, greatly improve production efficiency, reduce labor costs; new “Pallet RFID technology systems”, improve work efficiency, saving personnel costs.

(5) GMPC company continues to strict quality control standards implementation of quality management to ensure that the design, development, access to raw materials, incoming goods inspection, process quality control, product testing indicators, customer complaint handling rate is completed to a high standard.

(B) channel construction

During the reporting period, the company continued through traditional channels such as traditional strengths cosmetic specialty stores, department stores and supermarkets, implement refined management, further reinforces the company’s online channels under the line; while continuing to develop e-commerce, single-brand stores sales model, the implementation of multi-channel coordinated development.

(1) E-commerce

Companies with major electronic business platform such as Lynx, Taobao, the only product, Jingdong, the United States together superior products such as in-depth cooperation, as of the reporting period, the electricity supplier sales accounted for 36.08 percent, an increase of 31.91%, of which the only product other channels distribution achieved 11.50% growth, distribution and Direct Taobao shop growth rate reached 50%. 2017 and the emerging e-commerce platform “gathered” co-sponsored strategic cooperation, boosting sales promotion.

(2) stores a single

The company continues to explore the development of single-brand stores business model. As this report was released, the company Yue Fu Wendy shop number 31 single-brand stores. 2017 company-owned Levin’s excellent brand strategy adjustment, try excellent single-brand stores owned Lai mode, this report is dated as of, excellent single-brand stores owned Lai shop 126.

(3) department stores, supermarkets

As of the reporting period, the company super-channel 2017-year sales growth of 9.72%. 2017, Po Laiya brand was “Intime Business Growth Award of the Year 2017”, Intime to achieve system-wide retail sales growth of 23.2%; East RT whole system to achieve full-year growth of 21.6%.

(4) the date of franchise stores

During the reporting period the company continued to Japan franchise stores orderly development and refinement of management, cosmetic specialty store sales remained stable, the end of the reporting period, the company’s brand of cosmetic specialty shops in the country’s four municipalities, 293 to level cities (including the capital city), 368 county-level cities. The number of dealers more than 120 brand Po Laiya of the main line, cosmetic specialty stores under the line terminal sales outlets amounted to more than 13,000.

(Four) brand marketing

Brand development is the company’s core competitiveness, the company’s overall product positioning in the natural, pure, effective, marine and plant care as the main idea. During the reporting period, the company continued to build the brand into the whole process of business development, brand-oriented consumer groups towards further differentiation, younger development.

(1) Po Laiya brand

As the company’s main brand, the brand will continue to deepen the reporting period Neipolaiya “Ocean skin care,” the cultural core, to accelerate the pace of brand rejuvenation.

① 2017 brand was newly signed ambassador Tang Yan, and another spokesperson Song Zhongji Po Laiya, showing a younger brand mark; exclusive title Zhejiang TV independent radio drama “Family Guy Beauty heart”, put variety “dream voice” special sponsorship; joint microblogging topic, micro-channel circle of friends, search engines, APP, from the media, social forums, women’s sites and other new media, carrying H5 and video forms, carry out three-dimensional marketing.

② 2017 brand was to continue pushing the main star product “Aqua core muscle Series” and “bomb run series core muscle”, and launched a new “core muscle Whitening Series” and “energizing fresh color series.”

③ around the different seasons and theme activities to enhance brand image, to narrow the distance with consumers. During the Spring Festival, the brand launched interesting H5, spokesperson Song Zhongji jointly launched the “drift bottles pet shenchuan blessing” activities. April “Sun Ji” promotion, hand in hand “little fresh meat”, through the network drama “Yi travel agency” to carry out interactive marketing, all-round promotion of sunscreen BB cream. In July, the United Lynx Poly cost to join Tang Yan held “Tang Yan a call panacea in High will enjoy a really my core” fans will line interactive with the red line Internet broadcast, the electricity supplier sales depths with.

④ year at festivals such as the focus of “Carnival Mask,” “Ace replenishment season”, “light up a smile season” and other activities, online and offline interaction to promote and improve user loyalty and brand reputation.

(2) excellent resources Lay brand

2017 excellent resources Lay brand new start of the “tea raise the first year of” deep study “Tea raise skin,” clearly “natural tea, tea Yang Body” brand positioning, and launched a low, tea, high-end price support products, in order to improve the beauty of the tea product line to meet different levels of consumer demand.

January launch of the low-priced “fast Narcissus tea Water Series” demand “fast pay” for young consumers. Launched in July in the high-priced “theanine Soothing Series”, especially for sensitive skin prone population “skin repair” needs. December launch high-end price, “ginseng tea plastic Yan wrinkle series” to meet the ripe age of consumers ‘delay skin aging, anti-wrinkle firming’ needs.

(3) Other brands

During the reporting period, the company Han Ya, Wendy Yue Fu, You elegant, roses and other brand cat language optimization and upgrading, to narrow the distance with consumers, enhance interaction online and offline. Han Ya launch new “high ceramide soothing moisturizing series’ focus skin science, to provide” special recipe “for the skin type and skin problems. Yue Fu Wendy continue to be the star product “Christmas berry series, grass morning dew drop Crafts moisturizing series, red yeast muscle secret family” for the consumer pass “young, happy” proposition.

(E) Human Resource Management

During the reporting period, the company explore amoeba management mode, the pursuit of maximizing sales and minimizing expenses, people who have become managers, to enhance the two-way business and employees.

In September, the company and Zhejiang University “Po Laiya Business Administration Seminar”, which lasted three and a half the first batch of students learning, successful completion. In December, the company opened for reserve cadres, “grass-roots cadres training reserve”, which lasted more than a year learning also successful completion. For a variety of skills training full auditorium held, also received support and participation of all employees.

2017, the company continued to optimize the organizational structure, strengthen the performance appraisal.

2 reasons to suspend the listing of

3 face the situation and the reasons for termination of listing

Po Laiya Cosmetics Co., Ltd.

Po Laiya Cosmetics Co., Ltd.

Unit: Currency: RMB

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4 companies for accounting policies, changes in accounting estimates its causes and effects analysis shows

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See the 2017 annual report of the company, “verse 11 Financial Report” and “five significant accounting policies and changes in accounting estimates” and “33 significant accounting policies and accounting estimates.”

5 the company to modify its causes and effects of significant accounting errors analysis shows

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6 compared with the previous annual financial reports, changes in the scope of consolidation, the company shall make specific instructions.

The Company will Po Laiya Trade Co., Ltd. in Hangzhou, Hannah Cosmetics Co., Ltd. (formerly Mingpolaiya Cosmetics Co., Ltd.), Han Ya (Hangzhou) Cosmetics Co., Ltd., Zhejiang beautiful valley E-commerce Co., Ltd. Huzhou Chong-generation e-commerce, Yueqing Eliya trading Co., Wendy Yue Fu (Hangzhou) Co., Ltd. cosmetics, Huzhou Wendy Yue Fu trading Co., Ltd., Shanghai Wendy language cosmetics Co., Ltd., Danyang Fu Yue cosmetics Co., Ltd. Wendy, Wendy Yue Fu Co., secret mirror think of the phrase (in Hangzhou ) cosmetics Co., Ltd., Huzhou secret mirror think of the phrase Ltd. 13 subsidiaries included in the report on the consolidated financial statements, please refer to the financial statements, describing his interest in the other body.

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Author: ArticleManager