Shanghai Jahwa disclosed the third quarterly report of 2021, and the growth rate of non-net profit deducted in the first three quarters exceeded 70%

On the evening of October 26th, Shanghai Jahwa (600315. sh) disclosed the third quarterly report of 2021. The report shows that the company achieved revenue of 5.83 billion yuan in the first three quarters, a year-on-year increase of 8.7%; Realized a net profit of 420 million yuan, up 35% year-on-year; Non-net profit was deducted by 474 million yuan, up 72% year-on-year, and operating cash flow was 980 million yuan, up 59% year-on-year. In the first three quarters, Shanghai Jahwa continued to deepen the company's business reform around the "123 Business Policy", and the skin care and beauty category achieved a growth rate of over 25%, significantly exceeding the industry average; At the same time, the e-commerce business also achieved rapid growth of over 45% in the third quarter. According to the management, the brand and category differentiation development strategy promoted by the company has achieved initial results, and the channels have also been transformed to improve efficiency and upgrade the format. In the fourth quarter, the company's whole brand and omni-channel will continue to optimize its operation and strive for better performance.

★ Brand innovation ★
The growth rate of skin care and beauty categories exceeds 25%, far exceeding the industry level

Focusing on "brand innovation", the company has continuously gained in-depth insight into consumer needs, combed clear brand and category positioning, and continuously focused on key categories of high-end skin care and functional skin care. In the first three quarters, Shanghai Jahwa's skin care and beauty category increased by over 25%, far exceeding the average level of cosmetics industry.

In the third quarter of this year, the company successively launched herborist Taiji Biological Clock Cream and Eye Cream, Meijiajing Xianmi Bottle (Fermented Rice Rejuvenation Micro-coagulation Bead Essence), Qichu Anti-caries and Tooth-strengthening Children's Toothpaste, Liushen Jingcui Series Shower Gel and other explosive products, which were well received by consumers. During the reporting period, the Company continued to dig deep into consumer demand by means of big data, promoted the implementation of explosive product strategy, and realized full-link innovation through precision marketing, thus opening up the benign interaction among products, brands and consumers.

At the same time, in order to further help the development of domestic brands, In the third quarter of this year, Together with Tmall, the company held the first special cutting-edge brand competition for health and beauty care with the theme of "China Dream Home". With the aim of excavating, serving and incubating China's outstanding cutting-edge brands, all parties joined forces to make the popular online celebrity explosive products become enduring domestic classics and contribute to the Chinese brand dream together.

★ Channel advanced ★
E-commerce Q3 increased by over 45%, and the proportion of new retail business increased

On the online side, the company's e-commerce channel achieved double-digit revenue growth in the first three quarters, with a high-speed growth of over 45% in the third quarter. Up to now, e-commerce channels have established in-depth cooperation with Ali, Pinduoduo, Vibrato, Vipshop and other platforms, vigorously developed store self-broadcasting and member operation, improved the communication efficiency between brands and consumers, and concentrated resources to provide consumers with upgraded products and experiences according to the feedback of operational data.

Offline, the company's new retail business achieved 100% + growth in the first three quarters, and the revenue share of offline business increased to 10% +. In the Shangchao channel, the company expands its own home platform, applies it to store promotion and empowerment, and members broadcast live to help sales; In the department store channel, the company optimizes and improves the operational efficiency of members; In Watsons Channel, the company promotes the launch of ecological circle, and continuously promotes the channel advancement through member operation, online platform and its own home platform.

In September this year, Shanghai Jahwa also won the Best Digital Marketing Partner Award of HWB Health and Beauty Award issued by Watsons. The company's brand Diancui won the Best Brand Award, Yuze won the Best New Product Award, Goff won the Beloved Product Award, Fangxin won the Popular Women's Private Care Award, and Qichu won the Popular Mother and Child Award.

★ Digital transformation ★
The beauty category pilot has begun to bear fruit. The scale of private assets

During the reporting period, Shanghai Jahwa actively promoted the digital transformation, and the 123 digital strategy of "taking consumers as the center, optimizing customer acquisition cost and maximizing user value as two basic points, and taking brand globalization, operation digitalization and digital assets as three boosters" is gradually landing. The company tested the digital operation of skin care and beauty products, and empowered the brand with content operation. First, it quickly improved the crowd assets, and the crowd assets of the Douyin cloud map brand in herborist and Yuze increased rapidly; Secondly, digital marketing has improved its efficiency significantly. In the third quarter, nearly 200 Douyin and Xiaohongshu's KOL jointly called, achieving an exposure of over 100 million, integrating core products and products, and gradually increasing the proportion of sales of single products; Thirdly, the GMV of many stores in Tik Tok quickly climbed, and the accumulated GMV in the third quarter exceeded 20 million yuan.

In addition, around the needs of consumers' families, the company has built a whole brand private domain ecology through multi-channel drainage. As of the end of the third quarter, the total number of private domains such as WeChat Group, Tao Group and Special Canal has accumulated 450,000. Among them, the private domains of e-commerce channels are operated through groups, and the unit price of consumers in the group has increased significantly; In terms of special canal, the private domain model has a preliminary framework, which will accelerate the powder increase in the future.

A hundred years of ingenuity, the pursuit of perfection. In the future, Shanghai Jahwa will aim to become the leader of China's beauty and daily chemical industry, pursue beautiful products and services with good heart, create maximum value for consumers, employees, shareholders and society, actively realize the revival of national brands, satisfy people's yearning for a better life on a broader and richer level, and bring Chinese beauty to the whole world.