The revenue of Shanghai Jahwa, a Chinese cosmetics company, was about $319 million in the first quarter, an increase of 0.11% year-on-year, with the net profit attributable to shareholders of listed companies being about $29.95 million, an increase of 17.81% year-on-year. Shanghai Jahwa has several brands such as MAXAM, Herborist, and Dr.Yu.
On April 28, Beijing time, Shanghai Jahwa, a Chinese cosmetics company, released the first quarter of the 2022 performance announcement. During the reporting period, the company achieved approximately $319 million of revenue, an increase of 0.11% year-on-year, with an approximately $29.95 million net profit attributable to shareholders of listed companies, an increase of 17.81% year-on-year. The net profit after deduction of non-recurring gains was approximately $32 million, the highest in nearly 23 quarters. Shanghai Jahwa focuses on three major areas of beauty, personal care, and family care, and maternal and infant, which has brands such as MAXAM, Liushen, Herborist, Giving and Dr.Yu.
In terms of the category, the revenue of the Shanghai Jahwa skincare products declined in the first quarter, down about 18% year-on-year. The income of the personal care category increased by 10% year-on-year and the income of the maternal and infant categories increased slightly year-on-year. According to the brand, Liushen reached a double-digit growth and Dr.Yu is on par with last year, while other brands have shown different degrees of decline, with HomeAegis and Giving having a double-digit decline.
In terms of the channel, in the first quarter, the online business e-commerce channel was negatively affected by the live streamer influencers, the revenue of the special channel business fell by more than 40% year-on-year, the growth rate of the commercial supermarket revenue in the offline business was about 10%, the revenue of the department store business was basically on par with last year, the community income fell by 40% and the revenue of the CS channel fell by about 20%.
Shanghai Jahwa revealed: “In the first quarter of this year, the company’s channels were affected to varying degrees by the epidemic, special canal adjustment and the lack of live streamer influencers.”
Since February this year, Shanghai Jahwa has been deeply affected by the epidemic. With the headquarters based in Shanghai, shanghai Jahwa’s has been in the center of the epidemic storm with its online business and offline business having been affected to varying degrees. Due to the lockdown of the epidemic in Shanghai, the traditional CS, department stores and Watsons stores in Shanghai Jahwa have a rate of nearly 30% of closing down. In addition, the impact of the epidemic, logistics suspension and the fact that the delivery warehouses cannot be delivered led to a soaring product return rate and a decline in revenue.
Since the reform of Shanghai Jahwa last year and the transformation of the retail business, the first half of this year has been still facing the year-on-year pressure of a high base in the same period. However, the retail business of the Shanghai Jahwa special channel has recovered at double-digit growth and the overall business is expected to stabilize in the third quarter of this year.
For the lack of live streamer influencers, Shanghai Jahwa has adjusted its channel strategy and structure since the end of last year to resist the adverse impact of the lack of live streamer influencers. During the reporting period, excluding the factor of the lack of live streamer influencers, the operating income of Shanghai Jahwa E-commerce increased by about 13% year-on-year, with the self-streaming GMV increasing by 615% year-on-year, accounting for more than 16% of the overall e-commerce, and some brands exceeding 30%. It is expected that with the optimization of the company’s e-commerce and the improvement of operational capabilities, it is expected to see the initial adjustment results in the third and fourth quarters of this year.
According to reports, in the next second quarter, Shanghai Jahwa will continue to promote brand value improvement through events like key activities and word-of-mouth marketing and will also respond and promote synchronously with the recovery of the channel’s ability to undertake product sales. In addition, the online team actively tries to explore the family environment to carry out live streaming. It has increased the promotion of the home platform offline in supermarkets and Watsons and has also promoted the design of the epidemic prevention product group set page activities on community group buying, online stores, and home platforms. At the same time, it stocks up for dealers in advance to ensure that out-of-stocks are reduced as much as possible when the epidemic affects logistics operations.