After skin care products become the largest category, the old daily chemical enterprise Shanghai Jahwa United Co.Ltd(600315) will increase investment in head brands.
On March 16, Shanghai Jahwa United Co.Ltd(600315) ( Shanghai Jahwa United Co.Ltd(600315) , Shanghai Jahwa United Co.Ltd(600315) . SH) released the annual report for 2021. In 2021, the revenue reached 7.646 billion yuan, a year-on-year increase of 8.73%; The net profit attributable to the parent company was 649 million yuan, a year-on-year increase of 50.92%, slightly lower than the previously expected 655 million yuan. The revenue in the four seasons was 1.816 billion yuan, a year-on-year increase of 8.74%, and the net profit attributable to the parent was 229 million yuan, a year-on-year increase of 93.75%, slightly lower than the previously expected 235 million yuan.
Looking forward to 2022, Shanghai Jahwa United Co.Ltd(600315) said that the management of the company strives to achieve double-digit year-on-year growth in operating revenue in 2022 and strive to achieve the three-year plan goal of equity incentive.
Regarding the impact of the price rise of raw materials, Shanghai Jahwa United Co.Ltd(600315) said that through the change of product structure, that is, through the rapid growth of skin care products with high gross profit and the focus of various brands on investing in SKUs with high gross profit, the gross profit margin has been increased to ensure the profitability of the company.
In terms of product price increase plan, Shanghai Jahwa United Co.Ltd(600315) deputy general manager, chief financial officer and Secretary of the board of directors Han Min said at the subsequent telephone exchange meeting that so far, the price of raw materials is still in the trend of price increase Shanghai Jahwa United Co.Ltd(600315) is also preparing for price increase according to the situation of the whole industry and the survey results of consumers. At present, some products of Liushen have begun to prepare for price rise in March.
accelerate the expansion of emerging e-commerce channels
Split by channel, last year Shanghai Jahwa United Co.Ltd(600315) online business accounted for 42.04% and offline business accounted for 57.96%. Among online businesses, e-commerce China business accounts for more than 33% and more than 25% of the company’s overall business. Online sales channels grew rapidly, and e-commerce sales grew by more than 20%.
As for the layout of online business, pan Qiusheng, chairman and CEO of Shanghai Jahwa United Co.Ltd(600315) said at the conference call that the company began to adjust the whole structure in the second half of last year, hoping to accelerate the growth of online business through fine operation. Among them, e-commerce channels began to gradually get rid of their dependence on a single platform and expand more emerging e-commerce channels to cope with the downward trend of flow dividends of traditional e-commerce platforms.
With regard to the layout of brand live broadcasting business, Zhang Xiaojuan, chief digital officer of Shanghai Jahwa United Co.Ltd(600315) told surging news reporters at a telephone conference that the live broadcasting center of Shanghai Jahwa United Co.Ltd(600315) was established in 2019, and there are live broadcasting bases in Shanghai and Chengdu, of which 50 are contracted anchors, and about 70% of the live broadcasting will be completed by internal teams in 2021. In the future, we will continue to strengthen the internal construction of the self broadcasting team.
In terms of offline channels, according to the financial report, Shanghai Jahwa United Co.Ltd(600315) by expanding new retail business, supermarkets, department stores, CS (cosmetics stores) and other channels promote the online integration of offline business through home, store and cloud stores. The year-on-year growth rate of new retail business in the reporting period exceeded 100%, accounting for more than 10% of China’s offline business. In addition, the department store channel continued to be strategically closed and downsized. In 2021, 111 low yield counters and stores were closed, and the department store channel turned losses into profits.
increase the investment in skincare products for head brands
According to the financial report, Shanghai Jahwa United Co.Ltd(600315) positioned skin care products with high gross profit and rapid development, the annual growth rate of the category was 22%, which exceeded the growth rate of 14% in the similar cosmetics industry. The proportion of skin care products increased by nearly 4 percentage points year-on-year to 35%, Surpassing “gehujiaqing” to become the largest category of the company.
Chen Jing said at the telephone conference that the growth rate of the head brand of skin care products is very obvious. First, Yuze’s sales growth rate in the past three years is very high, so it will continue to invest in the brand and hope to achieve rapid growth in the field of skin care. Secondly, the revival of baicaoji has entered the second year. As a brand of Chinese herbal medicine, it will develop in the direction of efficacy, youth and high-end in the future. In terms of men’s track, Goff brand has entered the top three in relevant e-commerce channels, and will be upgraded in the future. In addition, Diancui will realize the road of branding in the future to seize the transformation of Shanghai Jahwa United Co.Ltd(600315) in the “component party” track.
Pan Qiusheng told surging news reporters about the layout of makeup business that makeup, medicine and high-end skin care are a fast-growing category judged by Shanghai Jahwa United Co.Ltd(600315) but Shanghai Jahwa United Co.Ltd(600315) current organizational ability is not the focus of endogenous incubation of brands, so we will continue to look at extension opportunities.
As for the layout of metauniverse, Chen Jing told surging news reporters that in terms of marketing innovation, metauniverse is an innovation model that Shanghai Jahwa United Co.Ltd(600315) pays close attention to, and is now negotiating opportunities with different platforms. However, based on the maturity of the development of the concept of “meta universe” at present, and in order to combine its own brand tone and future marketing development plan, the layout of meta universe is still in the stage of observation and evaluation for the time being.
As of the closing on March 16, Shanghai Jahwa United Co.Ltd(600315) reported 35 yuan, up 1.86%, with a market value of 23.8 billion yuan.
