Shanghai Jahwa’s revenue in the first half of the year was 3.715 billion yuan, and its net profit fell by nearly 45% year-on-year

On August 19, Shanghai Jahwa United Co., Ltd. released its 2022 semi-annual results and second-quarter operating data.

In the first half of the year, Shanghai Jahwa achieved revenue of 3.715 billion yuan, a year-on-year decrease of 11.76%. The net profit attributable to listed companies was 157 million yuan, a year-on-year decrease of 44.84%. The net profit after deduction was 200 million yuan, a year-on-year decrease of 39.58%.

Other major financial data showed varying degrees of decline. Sales expenses were 1.607 billion yuan, a year-on-year decrease of 13.40%; administrative expenses were 319 million yuan, a year-on-year decrease of 12.02%; research and development expenses were 65 million yuan, a year-on-year decrease of 17.27%. The gross profit margin decreased by 1.35 percentage points year-on-year; in addition, due to the impact of the epidemic, the company's investment income decreased by 74.27% year-on-year.

In the face of the double decline in revenue and net profit, Shanghai Jahwa believes that the main reason is that in the first half of 2022, especially since March, affected by the epidemic, the company has encountered factory shutdowns, warehouse closures and logistics restrictions in production, logistics, channels, etc. Due to multiple unfavorable circumstances such as offline retail terminal closures, offline and online businesses have been impacted to varying degrees. In addition, in the first half of 2022, the company's operating income decreased year-on-year, and factors such as fixed depreciation costs and rigid expenses such as land, plant, and equipment were superimposed, resulting in a year-on-year decline in gross profit margin.

Skin care category falls, personal care family clears the flag

In the 2021 financial report, Shanghai Jahwa’s skin care category business revenue was 2.697 billion yuan, a year-on-year increase of 22.22%, and the revenue ratio increased to 35%, making it the company’s largest business category.

In this year's semi-annual report, the revenue of skin care products business was 813 million yuan, down 34.84% year-on-year, accounting for 21.91% of the company's main business revenue, which is less than that of personal care and home care, mother and baby.

The top brands of Shanghai Jahwa's skin care products are mainly concentrated in Herborist and Yuze. During the reporting period, the main brands launched many new products and carried out a series of themed marketing. For example, the new Tai Chi series of Herborist has now become the product line with the largest scale and growth rate of Herborist. raised.

However, due to the adverse effects of the adjustment of special channels and the lack of overcapacity, as well as the sudden outbreak of the epidemic since March, it has a great impact on the growth of skin care products that Shanghai Jahwa strategically focuses on, resulting in a year-on-year decline of 34.84% in skin care products.

However, some investors believe that Shanghai Jahwa's revenue growth is really slow compared to other listed companies in the same industry, such as Proya, Bloomage Bio, Bethany, etc. Shanghai Jahwa said that in the future, it will still focus on beauty and skin care products on the brand side.

As a brand of Shanghai Jahwa focusing on personal care products, Liushen has a history of more than 30 years since its establishment and has a profound accumulation of brand power. Despite the impact of the epidemic in the first half of this year, it still achieved growth. During the 618 period, despite difficulties such as insufficient supply of goods, the e-commerce GMV still increased by 23% year-on-year, of which the Tmall flagship store increased by 56% year-on-year, except for the toilet water category. The market share remained absolute. In addition to its advantages, it has also successfully ranked among the TOP5 brands in the Tmall body wash category, driving the category to maintain positive growth in the first half of the year.

With the adjustment of the product structure, the Liushen brand carrying the flag is expected to increase in price, and the user population is also expected to expand from the home crowd to the multi-group, realizing the continuous improvement of the brand and driving the growth of the company.

According to the second quarter operating data announcement, the income of skin care products was 365 million yuan, the income of personal care home cleaning products was 629 million yuan, the income of mother and baby products was 529 million yuan, and the income of cooperative brands was 72.7342 million yuan.