Recently, CHAILEEDO learned that Xie Yong, the founder of the Chinese beauty brand Dr. Plant, has quietly acquired shares in Shanghai Jahwa, a leading cosmetics company in China. According to publicly available shareholder information from Shanghai Jahwa (600315.SH), Xie Yong holds a 0.55% stake, equivalent to 3.699 million shares, making him the sixth-largest public shareholder.
CHAILEEDO also noted that an investor inquired about this development on the Shanghai Stock Exchange’s e-Interaction platform, asking, “Dr. Plant’s founder Xie Yong has acquired shares in Shanghai Jahwa. Does Shanghai Jahwa have any plans to collaborate with Dr. Plant?” In response, Shanghai Jahwa stated, “As of February 17, the company has no such plans.”
Public records show that Dr. Plant was founded by Xie Yong, with its origins dating back to 1994. In 2004, Xie Yong opened his first skincare specialty store, and in 2014, Dr. Plant was officially established. Currently, Dr. Plant operates over 5,000 mono-brand stores across more than 300 cities and regions, including mainland China, Hong Kong, Osaka (Japan), and Jakarta (Indonesia), making it the top mono-brand store chain in China’s cosmetics industry. Additionally, in August 2023, Dr. Plant initiated IPO counseling in preparation for an initial public offering (IPO) on the Shanghai Stock Exchange’s main board, with CITIC Securities as its advising brokerage. As of January 21, 2025, the IPO counseling process has reached its sixth phase.
Shanghai Jahwa was founded in December 1995, with its predecessor being Hong Kong Guangshenghang, established in 1898. In 2001, Shanghai Jahwa was listed on the main board of the Shanghai Stock Exchange. The company primarily engages in the research, development, production, and sales of skincare, personal care, household cleaning, and maternal and infant care products. Its major brands include Herborist, Dr. Yu, GF, Maxam, Dicei etc.
According to its financial report, Shanghai Jahwa recorded revenue of RMB 4.476 billion in the first three quarters of 2024, marking a year-on-year decline of 12.07%. Its net profit attributable to shareholders was RMB 162 million, a 58.72% year-on-year decrease. The company attributed this performance decline to fair value fluctuations and reduced investment returns from its funds and stock investments, as well as challenges in its overseas business due to low birth rates, intensified competition in the baby and child care segment, and distributor inventory reductions. To maintain market share, Shanghai Jahwa has increased its brand marketing investments, which has led to a decline in net profit.
