China's Largest Beauty Company's Revenue Down 7.06%
- Chaileedo Press
- Apr 25, 2023
- 2 min read
Updated: Apr 26, 2023
Shanghai Jahwa, the Chinese beauty giant, released its 2022 annual report and 2023 Q1 report. In 2022, Shanghai Jahwa delivered 71.06 billion yuan ($1.03 Billion) in revenue, down 7.06% compared to 2021. In terms of revenue, Shanghai Jahwa now ranked first among Chinese cosmetics companies.
Shanghai Jahwa, the Chinese beauty giant, released its 2022 annual report and 2023 Q1 report. In 2022, Shanghai Jahwa delivered 71.06 billion yuan ($1.03 Billion), down 7.06% compared to 2021. The net profit of the company reached 472 million yuan ($68.26 million), with a decrease of 27.29%.
In terms of products, skin care business delivered 1.97 billion yuan ($285.64 million) revenue in 2022, down 26.78% compared to 2021, accounting for 27.82% of its total revenue. While revenue of personal care and household cleaning business increased 10.88% to 2.67 billion yuan ($386.45 million), accounting for 37.63% of its total revenue.
During the reporting period, Shanghai Jahwa continued to promote multi-platform layout through refined operations on its e-commerce channels, gradually reducing its reliance on a single strategy. Excluding the impact of Tmall, the overall growth rate was approximately 4%. Interest-based e-commerce (such as Douyin and Kwai) grew by over 200%, accounting for approximately 9% of the domestic e-commerce business. Among them, the year-on-year growth of Douyin shop was 160%, and that of Kwai shop was 4788%.
The company also achieved a breakthrough in multi-platform reach and expansion since the fourth quarter, and expects the above layout to bring better business growth in 2023. The company's special channels continue to promote retail business, achieving year-on-year positive growth in monthly sales at the end of 2023.
Shanghai Jahwa said the company faced pressure from the external environment in last year, especially in the second quarter when its factories and logistics bases were shut down. The company was affected by unstable factors on the demand side, as well as on the supply side such as production and logistics.
In the 2023 Q1. Shanghai Jahwa posted 1.98 billion yuan ($286.33 million) in revenue, down 6.49% compared to the same period of 2022. While the company’s net profit in 2023 Q1 reached 230.44 million yuan ($33.33 million).
In terms of products, skin care business reported 409.41 million yuan ($59.21 million) revenue, While revenue of personal care and household cleaning business reached 1.07 billion yuan ($154.28 million). The avraege price of the skin care products in Q1 rose 50.42%, from 21.49 yuan ($3.11) to 32.33 yuan($4.68).
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