Shanghai Jahwa Won the Exclusive Agent Right of Britain First Feeding Brand Tommee Tippee, and Future Development is promising

On the evening of March 21, Shanghai Jahwa United Co., Ltd published related transaction announcement and performance report of 2016. In 2016, Shanghai Jahwa realized operating revenue RMB 5.321 billion, and net profit RMB 216 million was attributed to shareholders of listed company. By all efforts of company executives, target of operating income in 2017 is growth of double-digit, compared with the operating income in 2016 which has been deducted the business income of selling Kao products as an agent.

At the same time, Shanghai Jahwa also announced that in 2017 the company intends to sign an exclusive distribution agreement with PRODUCT MARKETING MAYBORN LIMITED (hereinafter referred to as "PMM"), a wholly owned subsidiary of Jahwa Group, to become the exclusive dealer of PMM's baby feeding brand TommeeTippee, etc. in China (excluding Hong Kong, Macao and Taiwan) and to continue cooperating with substantial shareholder Ping An to carry out retail, group purchase and other daily business. Now Tommee Tippee which is a global high-end brand for infants and young children has conquered the largest market share in Britain.

Ms. ZHANG Dongfang, President & CEO of Shanghai Jahwa, expressed that through adjustment of 2016, the company will be directed by the operating principle “R&D First, Driven by Brand, Innovating on Channel and Guaranteeing the Supply”, will continue strengthening the brand equity and expand business field in 2017. And she believes that Shanghai Jahwa will get better achievement in the new year!

Participation of Britain Supreme Company Will Greatly Expand Infant Feeding Market.

In accordance with related transaction announcement, Shanghai Jahwa intends to sign an exclusive distribution agreement with PRODUCT MARKETING MAYBORN LIMITED (hereinafter referred to as "PMM") which is a wholly owned subsidiary of Shanghai Jahwa (Group)United Co., Ltd. and is held by Ping An Group. PMM is one of the main members of MAYBORN Group, and it mainly takes charge of purchase and sale of products of MAYBORN Group (including Tommee Tippee and other brands, involving products of feeding and eating of infants and children, infant health care and hygiene, etc.). PMM hopes to appoint Shanghai Jahwa as the exclusive dealer of MAYBORN Group’s products in China (excluding Hong Kong, Macao and Taiwan) according to agreement articles.

MAYBORN Group is a Britain high-end maternal and child supplies manufacturer with more than 50 years’ history. Its Tommee Tippee, a high-end brand, occupies the largest market share in Britain and enjoys high popularity and reputation in global infant feeding products industry.

Through 50 years’ development, now products of Tommee Tippee have covered three categories in feeding, soothing and diaper cleaning. The company which has excellent performance in market of newborn baby feeding, child feeding, feeding aid supplies and other market segments has occupied more than 50% market share in Britain, and it also has extraordinary performance in Australia, New Zealand and America market. Up to 2017, Tommee Tippee has been awarded the UK Super Brand Award for seven consecutive years, enjoying equal popularity with Microsoft, Coca-Cola, Nike and Google. In 2015, it also won "Britain's Most Innovative Brand" in Innovation and Excellence Award, "Baby Care Innovation Award" of Kind + Jugend and so on, and its five series of products were all voted as the Britain mothers’ favorite feeding supplies.

At the same time, Shanghai Jahwa intends to continue carrying out cooperation with affiliated enterprises of Ping An Group in 2017: relevant sales staff of Ping An Group promote Shanghai Jahwa and its products to their customers and the customers purchase products of Shanghai Jahwa through internet platform; Ping An Group and its affiliated enterprises conduct group purchase from Shanghai Jahwa.

Shanghai Jahwa said that the related transaction is related to the daily operation of the company, and it is a normal operation action. The transaction price is negotiated based on market so it is fair and reasonable. This related transaction won’t have negative impact on company's continuing operating capacity, profitability and independence of assets, etc, and won’t form greater reliance on related parties.

Brand Grand Ceremony is Coming and Operating Principle of 16 Characters Will Give Direction

In 2016, China's economy suffered slowdown and challenge of structural reform. However, the consumption upgrading, manufacturing in China and other big trends gave the industry new opportunity. Based on brands growth strategies, Shanghai Jahwa firmly carried out the operating principle of 16 characters to continuously reinforce enterprise development foundation.

R&D will be first. The company comprehensively improved the innovation system to accelerate the pace of development of new products; through focusing more on customers’ need and construction of core competence and further deepening the implementation scheme, new product development speed and new products contribution rate were significantly improved; on brand-driven, each brand of the company has new products and new series listed, a variety of marketing campaigns of different products was conducted according to seasons to enhance brands awareness in young consumer groups and ,making the brand younger has been constantly tried; on channel innovation, the company set up channel team of cosmetics franchise store. E-commerce business, direct stores and vertical e-commerce business platform enhanced control to channels by win-win pattern. All-channels strategy ensured that no matter how each channel developed, the customers would not be lost; on guaranteeing the supply, the company strengthened the coordination between supply and demand and improved the stability and accuracy of raw material supply, which greatly enhanced response speed and flexibility of the supply chain; through communication platform of producing and selling, operation effectiveness of the company was steadily improved. Qingpu base relocation project is conducted in order and it is expected to be put into operation by the end of 2017.

In 2017, the company will further carry out the operating principle of 16 characters and will continuously concentrate on three big fields in beauty skin care products, personal care products and home care products. Through the development process of making brand younger, the company will conduct effective communication with more young people to make the company's high-quality brand assets be inherited.

On March 23, Shanghai Jahwa will hold 2017 brand grand ceremony, and then nearly a thousand people, including dealers, media, and personages of other circles will attend it. In the ceremony, Ms. ZHANG Dongfang, President & CEO of Shanghai Jahwa, will firstly appear in public. Six big brands of Jahwa will be on stage to share brand development plan and the main products of all brands will be displayed.

Shanghai Jahwa was established in 1898 and its development has been for 119 years. As the only one enterprise with hundred years’ development in China's daily chemical industry, Jahwa will actively strive to lead the future development of the industry to make everyone beautiful and healthy, every family clean and happy. And Jahwa will be the best provider of beauty skin care products, personal care products and home care products.