Shanghai Jahwa Shareholders' Meeting Continues to Promote the Company's Long-term Development through the Option Incentive Plan

On September 15, Shanghai Jahwa (600315.SH) held its first extraordinary general meeting in 2021. At the meeting, relevant proposals such as the company's 2021 stock option incentive plan (revised draft), share repurchase plan and revision of some articles of the company's articles of association were reviewed and approved. At the general meeting of shareholders, Alex Pan, chairman and CEO of the company, and Han Min, chief financial officer and secretary of the board of directors, introduced the equity incentive plan, future performance goals and company development plans. The shareholders participating in the meeting also exchanged views with the company's board of directors and management personnel on the reform results and business objectives that have received high market attention.

In order to establish and improve the company's long-term incentive and restraint mechanism, the "2021 Stock Option Incentive Plan (Revised Draft)" was reviewed and approved at this shareholders' meeting. It is planned to use its own funds to repurchase part of the public shares through centralized bidding transactions for the implementation of equity incentives, which demonstrates the management's confidence in Shanghai Jahwa's development prospects and high recognition of the company's value, which will promote Jahwa to achieve a better longterm development.

At the general meeting of shareholders, Alex Pan said that the company's management needs to focus on continuously creating value for all shareholders:

We all want to be long-termists and create long-term value for the company. In the future, we will continue to focus on consumers and use our ingenuity to polish the products that consumers like and hear. This is the core of the management and the company's continuous and joint focus.

Shanghai Jahwa has achieved operating income of 4.21 billion yuan in the first half of the year, a year-on-year increase of 14.3. The net profit attributable to the parent company was 286 million yuan, a year-on-year increase of 56%. Net profit after non-deduction increased to 332 million yuan, a year-on-year increase of 103%. Profitability was greatly improved, and various operating indicators continued to improve. The company actively promotes the implementation of the "123 Business Policy" of "consumer-centric, brand innovation and channel advancement as the two basic points. Culture, system and process, and digitalization as the three boosters". The company continued to focus on the creation of TOP SKUs and popular models, actively innovated the marketing model, and improved the efficiency of channel operation. In the second half of the year, the company will further accelerate the development on this basis and make every effort to complete the annual business target.

A century of ingenuity, the pursuit of perfection. In the future, Shanghai Jahwa will aim to become a leader in China's beauty and daily chemical industry, and pursue the most beautiful products and services with perfection. The company will 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 the beauty of China to the world.