Shanghai Jahwa released the third quarterly report: maintain strategic focus and steadily promote high-quality and sustainable development
China Securities Network News (Wang Luo) On the evening of October 25, Shanghai Jahwa (600315) disclosed its financial report for the third quarter of 2023. According to the report, the company achieved operating income of 5.091 billion yuan from January to September, and net profit attributable to shareholders of listed companies of 394 million yuan, a year-on-year increase of 25.83%.
In the third quarter, due to the weak retail environment, the company's offline channels, which accounted for a high proportion, came under pressure, and the company's single-quarter revenue growth was negative. At the same time, the company maintained the forecast of future economic stability and consumption recovery, increased marketing investment in the third quarter, and achieved certain results, and its beauty brands Yuze and Shuangmei achieved double-digit growth.
During the same period, the company also issued an announcement on the adjustment of organizational structure, announcing the establishment of beauty and skin care and maternal and baby business department, personal care home cleaning business department, and overseas business department, and will take the business department as the decision-making body and be responsible for the performance results, so as to further improve the company's operation quality, activate organizational efficiency, and accelerate business growth. With the official implementation of the division system, the offline business will be further adjusted, and the online business will continue to make efforts to promote the company's high-quality and sustainable development, and ultimately achieve the medium and long-term goals and vision.
Make efforts to optimize online and offline The pilot of the division system shows results
In the third quarter of this year, the company continued to increase investment in brand building and crowd recruitment, accelerated online development and offline adjustment, and improved the synergy efficiency between brands and channels. The personal care home cleaning category, which accounts for a relatively heavy proportion of offline business, showed new development momentum in the early pilot of organizational restructuring in the third quarter, which further confirmed the effectiveness of the company's institutional adjustment.
In the beauty and skin care and mother and baby segments, Yuze achieved rapid growth in the Douyin channel, in July, the new Yuze Repair Essence, in September, combined with the appeal of star spokesperson Bai Yu and combined with the platform big IP, breaking the circle and recruiting new people, during the event, the brand's exposure exceeded 200 million+, has achieved a good result of continuous double-digit growth in the second quarter and the third quarter; Hercules set online sales share significantly increased, in the Tmall brand annual membership day showed explosive growth, GMV during the event exceeded 11 million, new customer transactions increased by 205% year-on-year, Tmall beauty personal care live broadcast room transaction ranked TOP1; Shuangmei achieved double-digit growth in the third quarter, star product jade cream 3.0 heavy upgrade was launched in September, focusing on anti-light and aging antioxidants and anti-sugar effects, helping consumers solve skin aging problems.
In the personal care home cleaning sector, the Meijiajing brand, which enjoyed the dividends of the pilot adjustment of the organizational structure, its self-broadcast team in September, "Old Baby Tiantuan", was hot on Douyin, and the live broadcast debut brought 12.9 million exposures to the Meijia net and 5.45 million live broadcast views, and in October, the brand joined hands with spokesperson Su Youpeng to launch the Jinwei E series. On the basis of consolidating the absolute advantage of high market share of the flower water category, Liushen held the "Second Cool Festival" to attract young people who travel in the summer high temperature to play cool social and continue to consolidate the brand rejuvenation strategy; the Jia'an brand achieved revenue growth from January to September under the pressure of the external environment. At the same time, the strong growth of offline new retail channels has become an important driving force for reversing the decline in offline channel traffic, which also shows the optimization results of the personal care home cleaning business unit that accounts for a relatively large proportion of offline business in the pilot organizational structure adjustment.
With the deepening adjustment and reform of the company's organizational structure, the division system is used to promote the business of each segment to focus on online and optimize offline, which is expected to further activate organizational efficiency and improve overall operational efficiency. In addition, during the reporting period, Shanghai Jahwa achieved remarkable results in the construction of global CRM, with the cumulative number of members exceeding 18 million so far, and more than 2.4 million people in the private domain community, effectively promoting the cross-brand linkage strategy and improving the brand stickiness, repurchase, and overall life cycle value of the overall user. During the reporting period, the company also held the "First Global CRM Home Joy Anniversary Points Redemption Gift" activity, which attracted a large number of enthusiastic participation from members.
ESG rating jumped 4 levels in 2 years to A Adhere to high quality and sustainable development
During the reporting period, Shanghai Jahwa continued to promote the practice of ESG sustainable development, and in the latest ESG rating released by MSCI (Morgan Stanley Capital International), Shanghai Jahwa received an A grade. Since the release of the "ESG Medium and Long-term Sustainable Strategic Plan" in 2021, the company has jumped four levels in two years, and is currently the highest rated enterprise in the domestic beauty industry.
The company is committed to long-term development, and strives to reduce the environmental impact of production, operation and other processes and the whole life cycle of products and services. In 2023, the company will innovate in product packaging, not only to educate consumers on packaging recycling, but also to run through the 3R concept in product design. In terms of carbon management, the company launched a solar photovoltaic project in Qingpu Cross Factory, which is estimated to generate 3.6 million kWh of electricity per year, accounting for one-quarter of the plant's electricity consumption, and is expected to reduce carbon emissions by more than 2,000 tons; the "Feiyue Plan", which has been implemented for three years, continues to integrate logistics warehouses, reducing carbon emissions generated by logistics, transportation and warehousing in South China; at the same time, the company carries out carbon footprint tracking upstream and downstream of the value chain, collects the carbon management performance of partners, and promotes product carbon footprint assessment in an orderly manner. In terms of product safety, the company introduced the EWG safety rating system, preferred EWG scoring green raw materials, and formulated a "List of Banned and Concerned Chemical Ingredients" containing 142 items, so that consumers can use products with peace of mind.
This year, the company also launched the "Home Public Welfare" project, carried out different public welfare actions on the brand, enterprise and employee side, and established the first employee volunteer team. The company cares for autistic youth and children, becomes a charity supermarket partner, supports the employment of elderly "star youth", donates millions of materials and products to the people and rescue teams in the flood-stricken areas of Beijing-Tianjin-Hebei, and co-hosts the "Home and Public Welfare" Lu'an Hope Primary School teachers and students to see Shanghai activities with the Shanghai Youth Development Foundation to support rural revitalization and empower the growth of teenagers.
Shanghai Jahwa has also made concerted efforts to protect investors' rights and strengthen risk management, promoting the diversification of the board of directors, expanding the responsibilities of the special committee, and continuously improving the company's information disclosure system and work process. In terms of risk management and internal control, Shanghai Jahwa continues to improve internal control and risk control processes, and in terms of anti-corruption and clean government, the party committee of the company launched the "clarion call action" to fight corruption and promote integrity, and established a clarion call action working group, which is committed to party style education, integrity publicity, self-examination and self-correction, and the scope of publicity and education covers all employees of the company.
This year is the 125th anniversary of the establishment of Shanghai Jahwa, as a firm long-term activist, Shanghai Jahwa will unswervingly respond to the call of the party and the country, base on long-term development, take advantage of the new organizational structure reform, follow the wave of consumption trends, promote the high-quality development of enterprises with refined R&D and Zhimei products and services, give full play to the long-term development resilience of enterprises, create maximum value for consumers, employees, shareholders and society, further realize economic development and national rejuvenation, and finally bring Chinese beauty to the world.
