Core Viewpoint - The Shanghai municipal government has approved measures to promote the high-quality development of the cosmetics industry, positioning it as one of the six key industries for development in the city, aiming to enhance the global competitiveness of "Shanghai-made" cosmetics [1][2]. Group 1: Policy Measures and Industry Impact - The newly introduced measures address critical gaps in the domestic cosmetics industry, with local brands holding 22 out of the top 50 but only capturing 39.98% of total retail sales [2]. - The measures emphasize multi-dimensional development paths, including market opportunity capture, product variety enhancement, quality improvement, and brand creation [2]. - The focus on technological empowerment and innovation aims to integrate traditional and modern cultural elements into "national trend products" [2][3]. Group 2: Local Company Initiatives - Shanghai Jahwa United Co., Ltd. is leveraging the new policies to enhance its brand "Herborist," which has successfully entered international markets, including flagship stores in Europe [2]. - On the other hand, Shanghai-based company Shiseido's Smart Manufacturing initiative is set to launch a smart factory with an investment of 300 million yuan, featuring AI-driven production capabilities [3]. Group 3: Industry Cluster Advantages - The "Oriental Beauty Valley" in Fengxian District hosts over one-third of Shanghai's cosmetics companies, contributing to a nearly 100 billion yuan industry scale and serving as the largest cosmetics import-export port in China [4]. - The Fengxian Customs has implemented measures to enhance efficiency in customs processes, with cosmetics import-export value reaching 905 million yuan in the first half of the year, a 7.18% increase year-on-year [4]. - The industry benefits from a combination of cluster advantages, innovation in research and development, and access to international resources, which are essential for enhancing global brand influence [4].

Market Overview - The cosmetics sector experienced a decline of 2.24% on September 18, with Lafang Jiahua leading the drop [1] - The Shanghai Composite Index closed at 3831.66, down 1.15%, while the Shenzhen Component Index closed at 13075.66, down 1.06% [1] Individual Stock Performance - Lafang Jiahua (603630) closed at 25.75, down 6.74% with a trading volume of 100,500 shares and a turnover of 263 million yuan [1] - Shuiyang Co. (300740) closed at 21.41, down 3.65% with a trading volume of 225,300 shares [1] - Shanghai Jahwa (600315) closed at 26.41, down 3.51% with a trading volume of 106,700 shares [1] - Other notable declines include Jiaheng Jiahua (300955) down 3.22% and Beitaini (300957) down 2.55% [1] Capital Flow Analysis - The cosmetics sector saw a net outflow of 385 million yuan from institutional investors, while retail investors contributed a net inflow of 363 million yuan [1] - The table indicates that retail investors were more active, with a net inflow of 21.49 million yuan in Lafang Jiahua despite its overall decline [2] - Notable net outflows from institutional investors were observed in companies like Beitaini and Furuida, with outflows of 15.90 million yuan and 20.48 million yuan respectively [2]

Core Insights - Shanghai Jahwa, a leading daily cosmetics company in A-shares, has established an innovative research and development center focusing on synthetic biology, disruptive innovation, and commercial value transformation [1] Group 1: Company Developments - The newly established Shanghai Jahwa Innovation R&D Center for Synthetic Biology marks a significant advancement in the company's R&D capabilities, shifting focus from product development to raw materials and beauty technology [1] - The center aims to enhance the company's emphasis on synthetic biology and disruptive innovation, indicating a strategic pivot in its research approach [1]

Core Viewpoint - Shanghai Jahwa has successfully registered five new raw materials with the National Medical Products Administration, focusing on the development and application of Chinese characteristic plants, which is seen as a significant opportunity for the company to leverage its unique resources in the beauty industry [1][2]. Group 1: R&D Strategy and Achievements - The company reported a revenue of 3.478 billion yuan in the first half of 2025, representing a year-on-year growth of 4.75%, while the net profit attributable to shareholders was 266 million yuan, up 11.66% [1]. - R&D expenses increased by 26% during the same period, reflecting the company's commitment to innovation and development [1][11]. - The R&D structure is divided into three main areas: basic research, product development, and project support, covering the entire process from raw material development to product quality control [3]. Group 2: Focus on Chinese Characteristic Plants - The company aims to deepen the research and application of Chinese characteristic plants, which are perceived as complex systems with multiple components and mechanisms, rather than relying on single-target research approaches [4]. - Shanghai Jahwa has established a database for external beauty prescriptions based on traditional Chinese medicine, utilizing AI technology to explore the potential of "Chinese ingredients" [4]. Group 3: Collaboration and Innovation - The company has partnered with the Chinese Academy of Traditional Chinese Medicine to establish a joint laboratory focused on the skin health benefits of Artemisia annua and other Chinese characteristic plants [7]. - A new innovation R&D center focusing on synthetic biology has been established, aiming to leverage gene editing and microbial engineering to create new cosmetic ingredients [9][10]. Group 4: AI and Digitalization - The company is exploring AI and digital capabilities, including an AI skin detection program developed in collaboration with Megvii Technology, which analyzes skin conditions based on facial data [11]. - R&D investments have steadily increased from 151 million yuan in 2020 to 179 million yuan in 2024, with a focus on enhancing the R&D system, medical research collaboration, and product innovation [11].

Core Viewpoint - The application of AI network pharmacology is essential for understanding the complex systems of traditional Chinese plants, which consist of multiple components, targets, and pathways [1] Company Summary - Shanghai Jahwa (600315.SH) is pioneering the establishment of a database for external beauty formulas based on traditional Chinese medicine, aiming to explore and utilize "Chinese ingredients" [1] - The Chief R&D Officer, Jia Haidong, emphasizes that traditional research methods focusing on single targets and components are insufficient for explaining the efficacy mechanisms of these complex systems [1]

Market Overview - On September 17, the cosmetics sector declined by 0.24% compared to the previous trading day, with Qingsong Co. leading the decline [1] - The Shanghai Composite Index closed at 3876.34, up 0.37%, while the Shenzhen Component Index closed at 13215.46, up 1.16% [1] Individual Stock Performance - Notable stock performances in the cosmetics sector included: - Tian Cai Ya (603605) closed at 81.77, up 0.85% with a trading volume of 44,700 shares and a transaction value of 364 million [1] - Fu Rui Da (600223) remained unchanged at 7.91 with a trading volume of 70,100 shares [1] - Shanghai Jahwa (600315) closed at 27.37, down 0.04% with a trading volume of 44,200 shares [1] - Other stocks like Marubi (603983) and Beitaini (300957) also experienced slight declines of 0.05% and 0.88% respectively [1] Capital Flow Analysis - The cosmetics sector saw a net outflow of 105 million from institutional investors, while retail investors experienced a net inflow of 54.72 million [2] - The overall capital flow for individual stocks showed varied trends, with some stocks like Jia Heng Jia Hua (300955) experiencing significant net outflows from institutional investors [3] Detailed Capital Flow for Selected Stocks - Jia Heng Jia Hua (300955) had a net outflow of 13.34 million from institutional investors, while retail investors contributed a net inflow of 17.15 million [3] - Other stocks like Fu Rui Da (600223) and Shui Yang Co. (300740) also showed mixed capital flows, with institutional outflows and retail inflows [3]

Market Overview - On September 16, the cosmetics sector rose by 0.03% compared to the previous trading day, with Shuiyang Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 3861.87, up 0.04%, while the Shenzhen Component Index closed at 13063.97, up 0.45% [1] Individual Stock Performance - Shuiyang Co., Ltd. (300740) closed at 22.48, with a gain of 1.63% and a trading volume of 208,500 shares, amounting to a transaction value of 469 million yuan [1] - Qingdao Kingway (002094) closed at 8.47, up 1.44%, with a trading volume of 326,600 shares and a transaction value of 277 million yuan [1] - Other notable performers include: - Kezhou Co., Ltd. (300856) at 14.23, up 0.57% [1] - Beitaini (300957) at 49.13, up 0.41% [1] - Furuida (600223) at 7.91, up 0.38% [1] Fund Flow Analysis - The cosmetics sector experienced a net outflow of 43.2 million yuan from institutional investors, while retail investors saw a net outflow of 23.0 million yuan [2] - Conversely, speculative funds recorded a net inflow of 66.2 million yuan [2] Detailed Fund Flow for Key Stocks - Shuiyang Co., Ltd. (300740) had a net inflow of 41.1 million yuan from institutional investors, while retail investors faced a net outflow of 71.8 million yuan [3] - Qingdao Kingway (002094) saw a net inflow of 15.3 million yuan from institutional investors, but a net outflow of 7.2 million yuan from retail investors [3] - Other stocks with significant fund flow include: - Beitaini (300957) with a net inflow of 5.7 million yuan from institutional investors and a net outflow of 13.2 million yuan from retail investors [3] - Furuida (600223) faced a net outflow of 10.2 million yuan from institutional investors but a net inflow of 8.9 million yuan from retail investors [3]

Core Insights - Shanghai Jahwa held its 2024 annual shareholders' meeting, approving 14 proposals including the 2024 Board of Directors' work report and the 2025 employee stock ownership plan [1] - The company achieved a revenue of 5.679 billion yuan in 2024, with improvements in corporate governance and operational standards [1] - The meeting also approved a profit distribution plan for the first half of 2025, aiming to reward investors and enhance employee motivation through shared interests [1] Group 1: Strategic Focus and Brand Development - The company has completed four major tasks: defining direction, clarifying governance, boosting morale, and eliminating burdens, leading to a strategic transformation [2] - The focus is on core brands, brand building, online presence, and efficiency, with significant upgrades in product offerings across various brands [2] - The Yuze brand has strengthened collaborations with top hospitals, leading to comprehensive upgrades in brand image and product formulation [2] Group 2: Performance and Future Goals - The company's major brands achieved double-digit growth in online channels during the 618 shopping festival, attributed to strategic planning and operational efficiency [3] - The leadership emphasizes the importance of organizational capability and aims to create a high-performing team to drive future success [3] - The company plans to deepen reforms and focus on brand development, targeting double-digit revenue growth by 2025, which is seen as a pivotal year for the company [3]

Market Overview - On September 15, the cosmetics sector declined by 0.18%, with Huaye Fragrance leading the drop [1] - The Shanghai Composite Index closed at 3860.5, down 0.26%, while the Shenzhen Component Index closed at 13005.77, up 0.63% [1] Individual Stock Performance - Notable gainers included: - Jinsong New Material (300849) with a closing price of 14.48, up 3.72% and a trading volume of 121,800 shares, totaling 179 million yuan [1] - Lafang Home (603630) closed at 28.58, up 2.11% with a trading volume of 71,300 shares, totaling 200 million yuan [1] - Notable decliners included: - Huaye Fragrance (300886) closed at 29.66, down 1.79% with a trading volume of 18,400 shares, totaling 55.05 million yuan [2] - Marubi Biological (603983) closed at 39.95, down 1.36% with a trading volume of 13,900 shares, totaling 55.49 million yuan [2] Capital Flow Analysis - The cosmetics sector experienced a net outflow of 83.38 million yuan from institutional investors, while retail investors saw a net inflow of 76.42 million yuan [2] - The overall capital flow for individual stocks showed: - Jinsong New Material had a net inflow of 18.50 million yuan from institutional investors, accounting for 10.31% of its total [3] - Huaye Fragrance had a net outflow of 4.23 million yuan from institutional investors, accounting for 6.58% of its total [3]

Market Overview - The Shanghai Composite Index fell by 0.12% on September 12, with 9 out of the 28 sectors rising, led by non-ferrous metals and real estate, which increased by 1.96% and 1.51% respectively [1] - The communication and comprehensive sectors experienced the largest declines, down by 2.13% and 1.95% respectively [1] - Overall, there was a net outflow of 53.64 billion yuan in the main funds across the two markets, with 6 sectors seeing net inflows [1] Sector Performance - The non-ferrous metals sector had the highest net inflow of main funds, totaling 2.168 billion yuan, coinciding with its 1.96% increase [1] - The construction and decoration sector also saw a positive performance with a 0.96% rise and a net inflow of 721 million yuan [1] - In contrast, the non-bank financial sector had the largest net outflow, amounting to 8.138 billion yuan, followed by the electronics sector with a net outflow of 7.517 billion yuan [1] Beauty and Personal Care Industry - The beauty and personal care sector declined by 1.52% with a net outflow of 228 million yuan [2] - Out of 29 stocks in this sector, 5 rose while 24 fell [2] - The top three stocks with the highest net outflows included Aimeike, Shanghai Jahwa, and Proya, with outflows of 55.4558 million yuan, 51.6741 million yuan, and 38.7707 million yuan respectively [2][3] Fund Flow in Beauty and Personal Care - The top stock in terms of net inflow was Shuiyang Co., with an inflow of 12.3562 million yuan, followed by Zhongshun Jierou and Huaxi Biological, with inflows of 10.1629 million yuan and 7.6373 million yuan respectively [2][4] - The table of fund flow indicates that Aimeike had the largest outflow at -55.4558 million yuan, with a decline of 3.03% [3] - Other notable outflows included Shanghai Jahwa at -51.6741 million yuan and Proya at -38.7707 million yuan [3]