21Apr2023招银国际Financial SummaryIncome statementCash flow summaryYE 31 Dec (RMB mn)FY20A FY21A FY22E FY23E FY24EYE 31 Dec (RMB mn)FY20A FY21A FY22E FY23E FY24ERevenue3,7524,6335,8127,3379,181 Net income4525577009441,208Skincare and cleanser3.9784,8936.0197.343D&A88966992120Makeup4656188761.2691,780Change in working capital(5070(101)(125)(324)Others(158107221016Gross profit2,3853,0793.9665,1096,510 Net cash fr.operating act3328306909201,020D&A(88)(96(120)Capex investments(184(194243)(385)Selling expense(1,497)(1,992(2,586)(3,338)(4,269)Investments134(70(126)(159)(199)Administration expenses(291)(367)(459)Others65Other operating expenses(17)(21)(98)(119)(145)Net cash fr.investing act.15(342(369)(466)(584)EBIT5787339211,1931,517Equity raised2EBITDA6668299911,2851,637 Change of Debts85648(60)60)(10)Dividend paid(128(154(195)(255)(334)Finance costs,net1477 OthersOther income/(expense)(127)(161)(156)(161)(197)Net cash fr.financing act.(43)490(343)Non-operating5)Pre-tax profit5486688391,1311,448 Net change in cash3039766139Cash at the beginning of the12471.4172.3912.4572.596Income tax(96)(111)(139)(188)(240)Exchange difference(1)Less:Minority interests24)(24(41)Cash at the end of the year1,55023932,4572,5962,689Net profit5146277249761,249Less:pledged cash(133(2Balance sheetKey ratiosYE 31 Dec (RMB mn)FY20A FY21AFY22EFY23E FY24EYE 31 DecFY20A FY21A FY22E FY23E FY24ENon-current assets1,2941,4741,7742,1492,613Sales mix (%100.0100.0100.0100.0100.0PP&E/Fixed assets5665597561.0001,301Skincare and cleanser86.485.984.282.080.0315397501631794Makeup12.413.315.117.319.447109109109109Other non-current assets367409409409409P&L ratios (%Gross margin63.666.568.269.670.9Current assets2,3423.1593,4273,7184,283 Operating margin15.415.815.916.316.5Cash1,41723912.5962,689 Pre-tax margin14.614.414.415.415.8285139239261579 Net margin13.713.512.513.313.6Prepayments837390110Effective tax rate(17.516.6)16.6)16.6)Inventory469448522618733Other current assets90123135152171 Balance sheet analysisCurrent ratio (x)0.60.80.7070.6Current liabilities1,1291,0251,0641,0091,123Net receivable days2811151323Borrowings299200150100100Net payable days1551131109090Accounts payable580483556549659Inventory turnover days125105103101100Other payables178252268269274net cash net cashnet cash net cash net cashTax payables7190909090Returns (%Non-current liabilities721721721721 ROE21.521.821.424.025.3BorrowingsROA14.113.513.916.618.1Deferred tax liabilities101111 Dividend yield0.40.50.70.912Other non-cumrent liabilities710710710710Per shareMinority Interest901034107 EPS(RMB)242.93.64.962Total net assets2,4822,883,4164,1375,052 DPS (RMB)0.70.9111.519Shareholders'equity2,39228773,3824,0704.944 BVPS (RMB)12.314.417.020.625.1Source:Company data,CMBIGM estimatesPLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE