JIAHEN Posted Revenue Down 9.45% to $152.61 million

In 2022, Jahen Household Products Co., Ltd.（JIAHEN）,the Chinese daily chemical products producer, reported a revenue of 1.052 billion yuan ($ 152.61 million), a year-on-year decrease of 9.45%.

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In 2022, Jahen Household Products Co., Ltd.(JIAHEN), the Chinese daily chemical products producer, reported a revenue of 1.052 billion yuan ($152.61 million), a year-on-year decrease of 9.45%. The company’s net profit attributable to shareholders reached 69.66 million yuan($10.11 million), a year-on-year decrease of 28.30%.

According to the financial report, the company is mainly engaged in the R&D, design, and production of OEM/ODM daily chemical products and plastic packaging containers, and has integrated comprehensive service capabilities for the R&D, formulation, packaging, and plastic packaging container design and manufacturing of cosmetics and home care products.

JIAHEN 's main products include skincare, hair care, perfumes, soaps, disinfectants, hand wash, and other home care products, as well as supporting plastic packaging containers. The products are mainly used in the fields of personal beauty care and home cleaning. The company's main brand customers include Johnson & Johnson, Shanghai Jahwa, Beiersdorf, Yumeijing, Inoherb, Dior, Victoria's Secret, Shell, Reckitt Benckiser, P&G, etc.

In terms of the business segments, cosmetics business recorded a revenue of 541 million yuan ($78.48 million) in 2022, saw decrease of 14.05%, accounting for 51.52% of the company's total revenue. Plastic packaging containers business delivered a revenue of 407 million yuan($59.04 million), accounting for 38.73% of the company's total revenue. Home care products business posted a revenue of 71.63 million yuan($10.39 million), with a decrease of 26.08%, accounting for 6.81% of the total revenue.

Regarding the year-on-year decline in operating income and net profit, JIAHEN Home attributes it to two factors. Firstly, the demand for cosmetics consumption was suppressed during the reporting period due to the impact of the macroeconomic environment. At the same time, due to personnel mobility and logistical constraints, the operational activities of Jiaheng's subsidiary, Shanghai Jiaheng, such as order delivery and production arrangements, were significantly affected in a phased manner.

Secondly, Jiaheng's wholly-owned subsidiary, Huzhou Jiaheng's cosmetics production line began gradually production in June 2022. Due to being in the initial stage of production, the utilization rate of production capacity was low, and its scale effect was not fully realized. At the same time, fixed expenses such as operating costs and depreciation resulted in losses during the reporting period.

In terms of regional breakdown, domestic revenue was 960 million yuan($139.26 million), a year-on-year decrease of 11.39%, accounting for 91.31% of the company's total revenue. While overseas revenue reached 91.33 million yuan($13.25 million), saw growth of 17.62%, accounting for 8.69% of the company's total revenue.

In addition, the company's R&D investment was 21.52 million yuan($3.12 million), mainly used for R&D projects on innovative technologies and material applications for cosmetics and related R&D projects such as anti-aging, wrinkle removal, whitening, sun protection, acne and spot removal, and hair loss prevention and scalp care.