China’s Leading Daily Chemical Company Declined by 7.06%
- Chaileedo Press
- Mar 15, 2023
- 2 min read
Shanghai Jahwa said that the complex Chinese economic situation and endless emergencies were the main reasons for the decline in performance.
On the afternoon of March 14, Shanghai Jiahwa released the announcement of the 2022 annual performance express. During the reporting period, the Company achieved operating income of 7.1 billion yuan ($1.03 billion), a year-on-year decrease of 7.06%.
Shanghai Jahwa is one of the daily chemical groups with the most extended history in China. Its products cover the three major fields of beauty makeup, personal care and household cleaning, and mother and baby products. It has always been in the leading position in China's beauty makeup.
According to the announcement of the 2022 annual performance bulletin, the main reason for the decrease in operating income this time is the complicated economic situation in China and the endless emergencies.
In the second quarter of 2022, factories and logistics bases will be shut down. In the second half of 2021, the special channel business adjustment brought about by the major shareholder reform will begin. The lack of e-commerce sales was brought about by the suspension of super anchor partners at the end of 2021. These three things all had a negative impact on company sales.
The downward trend of the performance of Shanghai Jahwa has been revealed before. Shortly after the 2022 semi-annual report was released, Shanghai Jahwa lowered its full-year performance target for 2022, lowering its annual revenue from 8.4 billion yuan ($1.21 billion) to 7.5 billion yuan ($1.08 billion). According to the third quarterly report of Shanghai Jahwa in October last year, the company's operating income in the first three quarters was 5.35 billion yuan ($776.8 million), a year-on-year decrease of 8.17%. The performance situation is not satisfactory.
In response to the downward trend in performance, Shanghai Jahwa has put forward countermeasures in two directions: brand innovation and distribution channels.
From the perspective of brand innovation, Shanghai Jahwa will continue to promote high-end, younger and more specialized products. For example, Herborist in the beauty category has successfully reshaped its brand positioning. Liushen in the personal care category promotes rejuvenation, high-end and all-seasonalization and has achieved initial results. In terms of product marketing, Shanghai Jahwa continues to strengthen its core brand building and accumulate experience.
In terms of channels, Shanghai Jahwa's online channels have achieved stable cooperation with multiple platforms and influencers, reducing the business risk of a single platform. Special channels continue to promote retailization, and by the end of 2022, monthly sales have begun to achieve positive year-on-year growth. At the same time, the smart retail of offline channels continued to transform, and the proportion of new retail businesses continued to increase.
Shanghai Jahwa also said that in the fields of culture, system and process, and digitalization, the company has made various efforts, hoping that these basic tasks can promote the continuous optimization and improvement of the overall business.
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