Shanghai Jahwa held an exchange meeting for the 20th anniversary of its listing, and continued to deepen reforms to create high-quality domestic products

On August 25th, Shanghai Jahwa held the 20th anniversary exchange meeting of "Composing Immortal Movements and Creating Glory Again". The chairman and CEO of the company, Alex Pan, expressed his gratitude to the community for Jahwa's support through a live broadcast, and shared the company's management and future development plans. Alex Pan said that the company will take the 20th anniversary of its listing as an opportunity to further implement the "consumer-centric" strategy, with brand innovation and channel advancement as the two basic points, and culture, systems and processes, and digitalization as the three boosters. 123 Management Policy". The company will continue to improve the company's operating efficiency, promote sustainable development, and start a new journey. Han Min, the company's chief financial officer and secretary of the board of directors, analyzed the company's development performance in the first half of the year and reviewed the company's main achievements in the 20 years since its listing. The relevant persons in charge of Yuze, Herborist and Diancui shared the development of the company's beauty brand from the perspective of brand development.

Brand differentiation competitiveness continues to improve

Yuze, Herborist and Diancui are the main brands in the beauty category. The relevant persons in charge first shared their brand strategies and business results at the exchange meeting.

As a professional dermatological skin care brand, Yuze will continue to strengthen the differentiated advantages of "skin barrier self-repair" and "medical research co-creation". In product development, it will strengthen product professional barriers through close integration with medicine, and actively embrace big data to empower new product development through data. Last year, Yuze Portable Tmall New Product Innovation Center (TMIC) gave a comprehensive insight into the minds of consumers. The new product "Blue Cabin Essence" created under this model has a GMV of over 10 million in the first week of its launch. In terms of marketing innovation, brands focus on consumers and carry out digital marketing transformation. Through the refined operation of new media communication, the delivery efficiency is improved, and a multi-dimensional matrix grass planting strategy is created to achieve product-efficiency resonance. In terms of channel layout, Yuze has consolidated offline professional channels. At the same time, it has laid out the Ping An Health online consultation platform, strengthened Watsons O+O strategy and the operation system centered on "retail digitalization" and "marketing digitalization".

As a domestic skin care brand established for 23 years, the road of revival opened by Herborist is also the road of "inheritance and innovation". Based on the insights of the skin care market, Herborist focuses on the core of the brand of Chinese herbal medicine, and uses technology to support and empower the skin care of Chinese herbal medicine to break through the limitation of "slow effect". It has repositioned its image as a "Chinese herbal medicine scientific research-level skin care expert", revealing China's self-confidence. With the help of TMIC, the brand explores the two major demands of Chinese women for whitening and anti-aging, and creates the new Qibai "light tube essence" and Tai Chi "biological clock" cream, which is highly praised by domestic and foreign industries. In the second half of the year, the brand will launch a multi-dimensional communication model innovation. Through star matrix, KOL/KOC grass planting, offline experience and live broadcast room laying on the whole platform, the effect of high sound volume, full dimension, internal and external resonance is achieved, and the product and effect are unified.

Faced with the rise of the "component party" and consumers' pursuit of high efficacy and high safety, Diancui is committed to creating "high-functional ingredients, high-efficiency verification, and high-tech endorsement". A scientific research-level skin care leading brand, targeting young people in small towns, consumers in the Z era, and cutting-edge white-collar workers. The brand has launched the polypeptide "7# trace essence" and niacinamide "energy brightening mask" in view of the large scale and fast growth rate of the facial essence and facial mask market. According to the characteristics of its own channels, it will further increase the proportion of online channels to achieve a closed-loop purchase.

Operating data continues to improve

The company's semi-annual report released on the evening of August 24 shows that in the first half of the year, Shanghai Jahwa achieved operating income of 4.21 billion yuan, a year-on-year increase of 14.3%; net profit attributable to the parent company was 286 million yuan, a year-on-year increase of 56%; net profit after deduction increased to 332 million Yuan, an increase of 103% year-on-year, the company's operating cash flow in the first half of the year increased by 87% year-on-year, operating indicators have improved, and profitability has increased significantly. Han Min, Chief Financial Officer and Secretary of the Board of Directors of Shanghai Jahwa, said when analyzing the results of the first half of the year: "In the first half of the year, Shanghai Jahwa continued to focus on TOP SKU and the creation of popular models, actively innovated the marketing model, improved the efficiency of channel operation, and the effect of reform and optimization continued to show."

Shanghai Jahwa was successfully listed on the Shanghai Stock Exchange in 2001, becoming the first listed company in the domestic beauty and daily chemical industry. Looking back on the development in the past 20 years since its listing, Shanghai Jahwa has never forgotten its original intention and mission. In 2006, the company completed the share structure reform. In 2011, it took the lead in implementing the reform of the state-owned enterprise system. This year, it introduced the advanced concept of responsible investment in the international capital market and launched the ESG management model. Every step of Shanghai Jahwa in the capital market leads the industry to develop towards higher quality and higher standards. The company has successively been selected into domestic indices such as CSI 500 Index, CSI 800 Index, SSE 380 Index, and international financial indices such as MSCI Index and FTSE Russell Global Index. at the same time. It was included in the Shanghai-Hong Kong Stock Connect standard, and the company's performance growth, governance effectiveness, and growth space have been recognized by domestic and foreign investors.

123 The management policy has achieved remarkable results

Since its listing in 2001, Shanghai Jahwa, with a history of 100 years, has achieved corporate innovation and transformation in the past 20 years. In today's beauty and daily chemical market, competition between international brands and domestic brands has intensified, emerging brands and niche brands have sprung up, consumers are more mature, and they have put forward higher requirements for products and brands. Alex Pan shared the company's series of measures and achievements around the "123 management policy" at the scene. Shanghai Jahwa is bursting with new vitality.

Shanghai Jahwa is forming a strong brand innovation synergy with the help of external forces. This year, Shanghai Jahwa joined hands with Tmall New Product Innovation Center (TMIC) to empower new product development through digitalization; established a technological innovation partnership with BASF to empower product innovation with technological innovation. Shanghai Jahwa focuses on consumer insights through the combination of powerful alliances and big data, and product innovation will become an important engine for brand growth. In terms of marketing innovation, the company has grasped the trend of personalization and rejuvenation, and realized the rejuvenation of the brand and the improvement of crowd assets through cross-industry and cross-platform innovation and multi-platform linkage grass planting. Taking advantage of the multi-brand and multi-category advantages, Shanghai Jahwa strives to build a private domain covering the entire life cycle of consumers' brand matrix. In the first half of the year, the company has accumulated a private domain scale of about 250,000 people and 800 communities, which has greatly reduced traffic costs.

For channel advancement, Shanghai Jahwa proposed five major measures: strategic cooperation, digital empowerment, smart retail, private domain operation, and model innovation to empower the rapid growth of offline new retail and e-commerce businesses. In March, Shanghai Jahwa and Watsons established in-depth cooperation to jointly develop innovative channels. In the first half of this year, offline new retail sales increased by more than 100% year-on-year, and the overall growth rate of online 618 exceeded 50%. In addition, the company deploys innovative e-commerce channels such as Douyin and Pinduoduo, and uses multi-platform linkage to build e-commerce into a new growth point in the future.

Last year, Shanghai Jahwa co-created the new corporate values of openness, transparency, innovation and enterprising, responsible and efficient, sharing and win-win, improving organizational efficiency, improving systems and processes, and promoting the evolution of business digital intelligence. Focusing on digital transformation, the company has carried out a series of measures such as production and research digitalization, smart supply chain, digital marketing, etc., and gradually become a modern, digital and efficient enterprise.

In the end, Alex Pan quoted Chairman Mao's classic verse, "Looking ahead for a long time" as the end. On the 20th anniversary of its listing, Shanghai Jahwa will take this as a new starting point, and also calls on all sectors of society to look forward to the future together with the company. In the future, step by step and season by season, we will complete the set goals and bring China's beauty to the world in the future.

In 2021, standing on the development milestone of the 20th anniversary of its listing, Shanghai Jahwa is ready to set off again. We are grateful for the long-term support and attention of Jahwa from all walks of life. The company will use this as a driving force to continue to promote the implementation and deepening of the business policy. The company's vision and goal will be to become the leader in China's beauty and daily chemical industry and to bring Chinese beauty to the world. At the same time, with the corporate slogan and philosophy of "hundred-year ingenuity, pursuit of perfection and beauty", the company will adhere to the pursuit of perfection in products and services to create maximum value for consumers, employees, shareholders and society!