Shanghai Jahwa achieved operating revenue of approximately 3.629 billion yuan ($497.6 million) in the first half of the year, a year-on-year decrease of 2.3%.
Today (August 28th), Shanghai Jahwa Co., Ltd. (referred to as “Shanghai Jahwa”) released its interim performance announcement for the year 2023.
According to public information, the company is mainly engaged in the research, development, production, and sales of skincare, personal care and home care, and maternal and child products. Its main brands include Herborist, Dr. Yu, and GF, as well as collaborative brands such as Pien Tze Huang (oral care), Fangxin, and Batiste. The company adopts a sales model that combines online and offline channels.
The announcement shows that Shanghai Jahwa achieved operating revenue of approximately 3.629 billion yuan ($497.6 million) in the first half of the year, a year-on-year decrease of 2.3%; net profit of approximately 301 million yuan ($41.27 million), a year-on-year increase of 90.90%; and net profit attributable to shareholders of listed companies was 300 million yuan ($41.13 million), a year-on-year increase of 90.9%.
In terms of product categories, Shanghai Jahwa’s skincare business revenue in the first half of 2023 (January to June) was 871 million yuan ($119.4 million), a year-on-year increase of 7.16%, accounting for 24.06% of the company’s main business revenue. Shanghai Jahwa stated that driven by the growth of skincare revenue, Chinese domestic business achieved operating revenue of 2.843 billion yuan ($389.8 million) in the first half of the year, with a year-on-year increase of 10.20% in the second quarter.
The revenue from personal care and home care business was 1.724 billion yuan ($236.4 million), a year-on-year decrease of 0.5%, accounting for 47.59% of the company’s main business. The revenue from maternal and child products was 911 million yuan ($124.9 million), a year-on-year decrease of 10.91%, accounting for 25.14% of the company’s main business.
In terms of channels, the revenue from online e-commerce channels in China was 816 million yuan ($111.88 million), accounting for 22.53% of the company’s main business revenue, with 167 million yuan ($22.9 million) from special channels. In the offline channels in China, revenue from supermarkets was 1.568 billion yuan ($215 million), accounting for 43.29% of the company’s main business revenue, while revenue from department stores was 128 million yuan, and revenue from cosmetics specialty stores was 157 million yuan ($21.53 million).
Shanghai Jahwa also highlighted the iconic brand for the first half of 2023. On the Tmall Super Brand Day of Dr. Yu, its flagship store ranked first in the beauty industry. During the Chinese 618 Shopping Festival (May 31 to June 20, 2023), a total of 240,000 units of Dr. Yu Oil Sensitive Cream were sold online, making it the top-selling product. From January 1 to December 31, 2022, the repurchase rate of the Dr. Yu reached 47.03%.
The men’s skincare brand GF collaborated with the King Glory and KPL champion team eStarPro to launch a new product, the Night Moisturizing Lotion, and released a collaborative gift box with King Glory IP on Tmall’s Brand Day, ranking first in the men’s gift box category on the “BIG DAY”.
In terms of overseas business, affected by the continuous increase in UK inflation since the beginning of the year, resulting in a decrease in consumer willingness, the overall UK infant and child market showed a downward trend. Additionally, intensified competition within the feeding category and the impact of distributors reducing inventory, the company’s overseas business faced pressure, with operating revenue of 786 million yuan in the first half of the year, a year-on-year decrease of 12.28%. Among them, online overseas business accounted for 335 million yuan ($45.93 million), and offline overseas business accounted for 451 million yuan ($61.84 million).
In the first half of 2023, driven by the recovery growth of domestic business, increased brand investment, and the growth of high-margin skincare products, Shanghai Jahwa achieved a structural improvement in gross profit margin while maintaining a stable or reduced sales and management expense ratio. The pressure from overseas business was alleviated, resulting in good operating results.
