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Shanghai Jahwa United Co., Ltd

Shanghai Jahwa Union Corporation (SH.600315) is one of the time-honored national enterprises in China's daily cosmetics industry. Its predecessor is the Hong Kong Kwong Sang Hong, established in 1898. It was listed on the Shanghai Stock Exchange in 2001, becoming the first listed enterprise in the domestic industry. In 2011, Shanghai Jahwa took the lead in implementing shareholding reform among Shanghai's state-owned enterprises, transforming into a mixed-ownership enterprise, with Ping An Insurance (Group) Company of China becoming the controlling shareholder. After years of development, Shanghai Jahwa has now become a multinational daily cosmetics enterprise. In 2024, Shanghai Jahwa achieved an operating income of nearly 5.7 billion yuan. It has more than 4,000 employees worldwide, two leading scientific innovation centers, and five manufacturing facilities, demonstrating globally advanced R&D and manufacturing capabilities. Its sales network covers Asia, Europe, Africa, North America, and Oceania.

Corporate Strategy

Shanghai Jahwa implements the "Four Focus" strategy, concentrating on core brands, brand building, online channels, and operational efficiency. It aims to establish a unified command system with brands at its core, comprehensively promoting the strategic upgrading of brands and channels, flattening organizational structures, and building talent pipelines. By creating an agile organization capable of timely decision-making, the company seeks to rejuvenate this century-old Chinese national enterprise.

First, focus on core brands. The company manages brands in echelons: the first echelon is Liushen and Yuze, the second echelon is Herborist and Maxam, and innovation brands include Golf, Qichu, Jiaan, etc. Through echelon division, it focuses main resources and strengths to support the development of core brands, striving for each brand to rank among the top three in their respective market segments.

Second, focus on brand building. Shanghai Jahwa has rich brand assets and brand value, and many of its brands have created history in China's daily cosmetics industry. In the future, the company will further clarify the target users and brand values of each brand, continue to precipitate brand assets, increase resource investment in brand product development, marketing, and packaging design, and further enhance brand building.

Third, focus on online channels. Based on the principle of omni-channel coverage and integrated online-offline development, the company is vigorously developing online business, deploying across multiple online platforms, continuously strengthening the autonomous operation capability of its self-broadcasting studios, and improving and expanding the influencer live-streaming matrix on social media platforms. Meanwhile, in its advantageous offline channels, the company grows together with developing clients to enhance online-offline integration and achieve new growth.

Fourth, focus on efficiency. To improve decision-making efficiency and market response speed, the company has adjusted its organizational structure to be brand-centric. Currently, the front-end of the company consists of three main business divisions: Personal Care Division, Beauty Division, and Innovation Division, with the middle and back ends fully supporting and empowering business development. In terms of improving human efficiency, the company aims to stimulate organizational vitality and execution, strengthen incentives for outstanding employees, and align team goals. Additionally, it seeks to enhance supply chain efficiency through measures such as reducing logistics costs and package damage rates.

Research and Manufacturing

Shanghai Jahwa attaches great importance to independent innovation, possessing eight industry-leading basic R&D platforms and over 200 high-precision R&D personnel globally. In China, the Shanghai Science and Innovation Center relies on a full-domain and multi-dimensional consumer insight model, as well as a fully visualized and traceable project management R&D approach, to achieve technological empowerment across three dimensions: fundamental research, applied innovation, and product value creation. It creates aesthetic products and services through a combination of "Chinese characteristics + international concepts + digital intelligence empowerment." Meanwhile, overseas R&D centers continue to focus on developing blockbuster maternal and infant feeding products.

By the end of 2024, Shanghai Jahwa held 455 valid authorized patents, including 115 national invention patents. Additionally, it newly submitted 130 patent applications, of which 72 were domestic invention patent applications, further consolidating its leading position in R&D technology.

Shanghai Jahwa has five major factories globally, namely Shanghai Qingpu Kuayue Factory, Hainan Factory, Dongguan Factory, and factories in Morocco (Africa) and the UK (Europe). The total annual global production capacity reaches 900 million pieces. Among them, the Shanghai Qingpu Kuayue Factory has invested nearly 1.2 billion yuan, with a construction area of approximately 100,000 square meters and an annual production capacity of 700 million pieces. It specializes in producing skin care products, hair and body care products, and perfumes. The Hainan Factory specializes in producing Liushen brand toilet water, with an annual production capacity of nearly 100 million pieces. The three factories in Dongguan, Morocco, and the UK specialize in producing Tommee Tippee maternal and infant products.

Corporate Certifications and Honors

In recent years, Shanghai Jahwa has successively received numerous national and municipal honors. The Company has been awarded the "High-Tech Enterprise" by the Ministry of Science and Technology, the Ministry of Finance, and the State Tax Administration for 23 consecutive years. It has obtained the "National Enterprise Technology Center" recognized by the National Development and Reform Commission, the Ministry of Finance, the General Administration of Customs, and the State Tax Administration. It has been awarded the "Eco-Design and Green Manufacturing Pilot Enterprise", "National Green Factory", "National Industrial Design Center", and "Industrial Product Green Design Demonstration Enterprise" by the Ministry of Industry and Information Technology. Additionally, it has received the "National Intellectual Property Demonstration Enterprise" from the National Intellectual Property Administration, the "Smart Factory 100+" from the Shanghai Municipal Economic and Information Commission, the "National Post-Doctoral Research Workstation" recognized by the Ministry of Human Resources and Social Security, and the "Shanghai Expert and Academician Workstation" approved by the Shanghai Academician and Expert Workstation Evaluation Committee, among other honors.

Sustainable Development

In 2021, Shanghai Jahwa took the lead in introducing the ESG (Environmental, Social, and Governance) management model within the industry, always firmly practicing the philosophy of "Born for Beauty, Acting for Goodness." As an ESG benchmark in the industry, Shanghai Jahwa has gained high external recognition. The Company achieved an A rating in the ESG ratings of MSCI*, a renowned international ESG rating agency, an AA rating in Wind ESG ratings, and a B rating in CDP's climate change ratings. Its ESG ratings have reached a leading level in the domestic industry, guiding the industry's sustainable development. Shanghai Jahwa has also actively responded to national policies by issuing the ESG Medium and Long-Term Plan White Paper and establishing a sustainable development governance system.
*MSCI ESG ratings as of the end of 2023, with no updates thereafter.

As a leading enterprise in China's daily cosmetics industry, in the future, Shanghai Jahwa will create a beautiful and healthy life for consumers through classic brands and high-quality products, and strive to become a first-class daily cosmetics company based in China and radiating overseas.