Core Viewpoint - The article highlights the innovative collaboration between Shanghai Jahwa and Watsons in launching the "Revitalizing Secret Lab" event, focusing on effective skincare products and consumer engagement through interactive experiences [2][3][22]. Group 1: Brand and Product Positioning - The brand "Dian Cui," previously a sub-brand of Bai Cao Ji, is now positioned as an effective skincare brand with a new scientific approach [3][25]. - The "Revitalizing Secret Lab" event combines brand history, scientific research, and consumer interaction, effectively bridging the gap between brands and consumers [5][22]. - Dian Cui's latest "Hydrating Repair Series" addresses skin issues like dryness and sensitivity, emphasizing the importance of skin barrier health [8][10]. Group 2: Scientific and Technological Innovations - The product formulation includes 4D hyaluronic acid for rapid hydration and ceramides for repairing the skin barrier, showcasing a comprehensive skin repair solution [10][12]. - The application of proprietary technology "CPPs Permeation Peptide" enhances the absorption of active ingredients, achieving a 73.93% penetration rate within 2 hours [10][12]. Group 3: Consumer Engagement and Marketing Strategies - The event featured interactive games and KOL collaborations to engage consumers and promote the brand's efficacy claims [12][13]. - Reward mechanisms like "social media sharing for samples" targeted Gen Z's social sharing needs, enhancing brand visibility [13][22]. - The pricing strategy of "249 yuan for 9 items" lowered the decision-making threshold, facilitating word-of-mouth marketing [13][22]. Group 4: Retail Strategy and Market Positioning - Watsons' transformation into an experiential retail model is highlighted, with a focus on effective product categories and enhanced customer experiences [19][20]. - The collaboration aims to redefine retail standards for scientific skincare, integrating scientific communication into interactive experiences [22][29]. - Dian Cui's positioning as a high-quality, cost-effective skincare brand aims to address the growing demand for transparency and efficacy in skincare products [25][27].

2 0 2 4年在国货美妆发展史上是值得记录一年： 一方面，国内诞生首个突破百亿美妆企业，珀莱雅以1 0 7 . 7 8亿元营收首次跻身"百亿俱乐部"， 成 为 行 业 里 程 碑 事 件 ； 同 时 ， 十 强 门 槛 抬 高 至 近 3 0 亿 元 ， 前 十 总 营 收 规 模 扩 大 至 5 4 3 . 7 7 亿 元。 另一方面，前十座次发生较大变化，毛戈平首次闯入榜单，上海家化、华熙生物等企业持续步 入变革期深水区，迎来业绩"震荡"。 在"突飞猛进"与震荡调整并存的阶段，头部国货企业的发展预示着行业怎样的未来？ 综 合 2 0 2 1 年 至 2 0 2 4 年 国 货 美 妆 上 市 企 业 十 强 榜 单 情 况 来 看 ， 可 以 发 现 ， 名 次 发 生 了 较 大 变 化。每一年的前三名都不相同，并且持续有"突围者"闯入榜单，例如2 0 2 4年的毛戈平。 | | | | 2021年至2024年国货美妆上市企业十强榜单 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | -- ...

Investment Rating - The report maintains a "Buy" rating for Shanghai Jahwa, indicating an expected stock price increase of over 15% compared to the benchmark index [4]. Core Views - The company reported a net profit of 2.17 billion yuan in Q1 2025, marking a turnaround from losses in the previous quarter, despite a 10.59% year-on-year decline in revenue [1][2]. - The company is undergoing strategic adjustments, including brand upgrades and channel optimization, which are expected to enhance profitability in the future [2][4]. Financial Performance Summary - In 2024, the company achieved revenue of 56.79 billion yuan, a year-on-year decrease of 13.93%, with a net profit of -8.33 billion yuan [1]. - For Q1 2025, revenue was 17.04 billion yuan, down 10.59% year-on-year, but the net profit showed a recovery to 2.17 billion yuan [1]. - The gross margin for Q1 2025 was 63.4%, with a net margin of 12.75% [1]. Business Segment Analysis - Personal care segment revenue in 2024 was 23.79 billion yuan, down 3.42% year-on-year, with a gross margin of 63.59% [2]. - The beauty segment saw a significant decline in revenue, down 29.81% to 10.50 billion yuan, but maintained a gross margin of 69.67% [2]. - The overseas business generated 14.15 billion yuan in revenue, a decrease of 11.43% year-on-year, with a gross margin of 48.32% [2]. Employee Stock Ownership Plan - The company announced an employee stock ownership plan aiming to raise up to 77.51 million yuan, with a share price set at 16.03 yuan per share [3]. - The plan includes participation from key executives and middle management, reflecting long-term confidence in the company's recovery [3]. Profit Forecast - The company is projected to achieve net profits of 3.42 billion yuan, 4.64 billion yuan, and 5.24 billion yuan for the years 2025, 2026, and 2027, respectively [4]. - The expected earnings per share (EPS) for the same years are 0.51 yuan, 0.69 yuan, and 0.78 yuan, with corresponding price-to-earnings ratios of 44x, 33x, and 29x [4].

Market Overview - The three major A-share indices experienced slight declines, with the Shanghai Composite Index down 0.05%, the Shenzhen Component Index down 0.05%, and the ChiNext Index down 0.13%. The North Star 50 Index, however, rose by 1.24% [1] - The total market turnover was 1.0417 trillion yuan, a decrease of 35 billion yuan compared to the previous day, with over 3,500 stocks rising across the market [1] Sector Performance - The PEEK materials, beauty care, chemical products, humanoid robots, and agricultural machinery sectors saw the largest gains, while the electricity, insurance, liquor, port shipping, controllable nuclear fusion, and coal sectors experienced the most significant declines [2] - Notable stocks included PEEK materials concept stocks such as Juyuan Long (301131), Xinhang New Materials (301076), and Zhongxin Fluorine Materials (002915), which all hit the daily limit [2] - The beauty care sector saw strong afternoon performance with stocks like Marubi Biotechnology (603983) hitting the daily limit, while other notable gainers included Babi Co., Jinbo Biological, and Shanghai Jahwa (600315) [2] Stock Highlights - Step by Step (002251) and Maoye Commercial (600828) both achieved a "limit-up" performance in the afternoon, showcasing significant market interest [2] - The electricity sector faced a downturn, with stocks like Shaanxi Energy (000601), Leshan Electric Power (600644), and Xichang Electric Power (600505) hitting the daily limit down [2] - The liquor sector also lagged, with Yingjia Gongjiu (603198) hitting the daily limit down, and other major players like Yanghe Brewery (002304) and Gujing Gongjiu (000596) showing significant declines [2] Notable Trends - The "hot stock list" featured companies like Step by Step, Hongbaoli, and Maoye Commercial, with respective gains of 4.15%, 5.81%, and 10.02% [7] - The "strong wind direction list" highlighted sectors such as new energy vehicles, chemical products, and robotics, with multiple stocks hitting the daily limit [11][12][13] Economic Indicators - The People's Bank of China conducted a reverse repurchase operation of 340.5 billion yuan for a 7-day term at an interest rate of 1.50% to maintain liquidity in the banking system [32] - The Ministry of Commerce reported that China's service trade totaled 19,741.8 billion yuan in the first quarter, reflecting a year-on-year growth of 8.7% [33]

Core Viewpoint - In 2024, the company reported revenue of 5.679 billion yuan, a decrease of 13.93%, and a net profit attributable to shareholders of -833 million yuan, primarily due to a goodwill impairment of 610 million yuan related to the acquisition of TomiStar and a loss of 100 million yuan from overseas operations [1][2] Financial Performance - The company disclosed its 2024 annual report and 2025 Q1 report, showing a revenue of 5.679 billion yuan in 2024, down 13.93%, and a net profit of -833 million yuan, mainly due to a goodwill impairment of 610 million yuan and a loss of 100 million yuan from overseas operations [2] - In Q1 2025, the company reported revenue of 1.704 billion yuan, a decrease of 10.59%, and a net profit of 217 million yuan, down 15.25%, with a non-recurring net profit of 192 million yuan, down 34.49% [3] Strategic Adjustments - The company implemented strategic adjustments in 2024, including reducing social inventory in department stores, closing inefficient stores, and transitioning some online distributors to a self-operated model, which negatively impacted revenue and profit [4] - The overseas business, particularly TomiStar, faced challenges leading to a revenue decline of 1.415 billion yuan, down 11.43%, and a gross margin decrease of 48.32%, down 3.02 percentage points [4] Brand and Channel Development - The company established a "four focuses" strategy in 2024, emphasizing online channel development, with online revenue of 2.539 billion yuan, a decline of 9.66%, but with an increased online revenue share of 44.7% [5] - The company is actively expanding into emerging channels such as community group buying and snack chains, with nearly 40,000 new stores opened in Q1, achieving double-digit growth in sales from these new channels [5] Employee Incentives - The company announced an employee stock ownership plan, with a total of no more than 45 participants, aiming to raise up to 77.51 million yuan, with specific performance targets set for 2025-2027 [6] - The plan is designed to address historical issues and improve employee retention, as previous incentive completions were low and core employee turnover was high [6] Profit Forecast - The company is expected to achieve net profits of 343 million yuan, 467 million yuan, and 593 million yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings ratios of 45, 33, and 26 times [8]

Core Viewpoint - The company is experiencing short-term performance pressure due to internal adjustments, with a significant decline in 2024 revenue and net profit, but a narrowing of the decline in Q1 2025 [1] Financial Performance - In 2024, the company achieved revenue of 5.679 billion, down 13.93% year-on-year; net profit attributable to shareholders was -0.833 billion, down 266.60% year-on-year; and non-recurring net profit was -0.838 billion, down 366.41% year-on-year [1] - In Q1 2025, the company reported revenue of 1.704 billion, down 10.59% year-on-year; net profit attributable to shareholders was 0.217 billion, down 15.25% year-on-year; and non-recurring net profit was 0.192 billion, down 34.49% year-on-year [1] Segment Performance - In Q1 2025, the beauty segment generated revenue of 0.329 billion, up 10.7% year-on-year, accounting for 19.3% of total revenue, despite a 65.4% decline in average price due to inventory clearance [2] - The personal care segment achieved revenue of 0.791 billion, with an average price decline of 13.4% [2] - The innovation/overseas segments generated revenues of 0.233 billion and 0.347 billion, respectively [2] Channel Performance - In Q1 2025, online channels saw a revenue growth of 10.4%, with a revenue share of 29%, up 5.5 percentage points year-on-year; brands like Yuzai, Liushen, and Baicaojie experienced triple-digit growth in GMV on Douyin [2] - The company expanded its emerging channels by opening 38,000 new stores in Q1, with sales in these channels growing by double digits year-on-year, aiming to complete a target of 10,000 stores in the first half of the year [2] Profitability and Cost Structure - In 2024, the company's gross margin and net margin decreased by 1.37 and 22.25 percentage points year-on-year, respectively; in Q1 2025, gross margin increased by 0.14 percentage points, while net margin slightly declined by 0.70 percentage points due to inventory adjustments and increased marketing expenses [2] - The expense ratios for sales, management, and R&D increased year-on-year in both 2024 and Q1 2025, primarily due to revenue pressure [2] Employee Stock Ownership Plan - The company has introduced an employee stock ownership plan for up to 45 core management members, with a buyback price of 16.03 yuan per share; the CEO and CFO plan to subscribe for a maximum of 1.008 million shares, accounting for 20.85% of the total [3] - The plan will unlock in three phases, with performance targets tied to achieving positive net profit in 2025 and a year-on-year growth of no less than 10% in 2026-2027 [3]

Core Viewpoint - The company reported a significant decline in revenue and a net loss for 2024, with expectations for gradual improvement in 2025 as it undergoes strategic organizational transformation [1][2]. Financial Performance - In 2024, the company achieved revenue of 5.679 billion yuan, a year-on-year decrease of 13.9%, and a net loss of 0.833 billion yuan, marking a shift from profit to loss [1]. - For Q1 2025, revenue was 1.704 billion yuan, down 10.6% year-on-year, while net profit was 0.217 billion yuan, a decrease of 15.3% year-on-year [1]. Strategic Initiatives - The company faced challenges in 2024 due to goodwill impairment from overseas operations, strategic adjustments in domestic business, and a decline in uncontrollable investment income, leading to a net loss [2]. - The profit fluctuations in Q1 2025 were primarily due to adjustments in pricing strategies and delays in inventory replenishment by offline distributors, although overall demand remained unaffected [2]. - The company is actively responding to industry changes by promoting online transformation and implementing strategic adjustments in offline channels, with expectations for transformation results to gradually materialize in 2025 [2]. Employee Engagement - The company announced an employee stock ownership plan, allowing for a maximum of 4.8351 million shares (0.72% of total shares) to be allocated to up to 45 employees, sourced from repurchased shares at an average price of 16.03 yuan per share [3]. - The performance targets associated with the stock ownership plan include achieving profitability in 2025 and maintaining a net profit growth rate of no less than 10% for 2026-2027 [3]. - This plan aims to enhance employee cohesion and company competitiveness, motivating employees and fostering long-term sustainable development [3]. Profit Forecast and Investment Outlook - The company forecasts revenues of 6.422 billion yuan, 7.399 billion yuan, and 8.294 billion yuan for 2025, 2026, and 2027, respectively, with growth rates of 13.1%, 15.2%, and 12.1% [4]. - Expected net profits for the same years are projected at 0.366 billion yuan, 0.484 billion yuan, and 0.642 billion yuan, indicating a return to profitability in 2025 and growth rates of 32.3% and 32.5% for 2026 and 2027 [4]. - Earnings per share (EPS) are anticipated to be 0.54 yuan, 0.72 yuan, and 0.95 yuan for 2025, 2026, and 2027, respectively, as the company undergoes adjustments across various dimensions [4].

Core Insights - Shanghai Jahwa's 2024 performance report reveals its first loss since going public, with Sephora China reporting a total loss of 646 million yuan in 2024 [1][3] - The cumulative loss for Sephora China over three years has reached nearly 1 billion yuan [1][3] Financial Performance - In 2024, Sephora China's revenue was 7.14 billion yuan, a year-on-year decline of 18.49%, with a net loss of 646 million yuan [4][3] - The financial performance from 2019 to 2024 shows a significant decline, with 2021 being the peak year, where revenue exceeded 10.87 billion yuan and net profit was 431 million yuan [3][4] Market Challenges - Increased competition in the online market and challenges faced by physical stores have led to reduced revenue and gross profit for Sephora China [6][12] - Several brands, including Tang from Herborist and OLEVA+, have withdrawn from Sephora, indicating a shift in brand strategies towards online sales [6][12] Strategic Adjustments - Sephora is undergoing organizational restructuring and has made key personnel changes to enhance its market presence in China [9][11] - The company is expanding its brand portfolio by introducing local brands and entering lower-tier cities to capture a broader market [11][12] Industry Context - The overall cosmetics market in China is experiencing a downturn, with a market size of 774.65 billion yuan in 2024, down 2.83% year-on-year [11][12] - Domestic brands have been gaining market share over foreign brands since 2023, indicating a shift in consumer preferences [11][12]

Group 1 - Shanghai Jahwa expresses confidence in achieving high double-digit GMV growth for its core brands during the 618 shopping festival [1] - The employee stock ownership plan aims to enhance competitiveness, reduce turnover rates, and foster a sense of ownership among employees [1] - Strategic adjustments over the past six months include clear strategy formulation, organizational design alignment, talent development, and cultural building [1] Group 2 - E-commerce initiatives involve inventory optimization, pricing adjustments, organizational restructuring, and product iteration [1] - The Yuze B5 series is planned to be a key product line on JD.com [1] - Efficiency improvements have been noted in terms of product effectiveness, personnel effectiveness, e-commerce services, and operational quality [1] Group 3 - The company aims for double-digit revenue growth this year and to turn profits from losses [1] - The mosquito repellent product line will increase its online presence and expand offline distribution [1] - Long-term profit recovery is projected to follow a timeline of 1-2 years for revenue growth, 2-3 years for profit improvement, and 3-5 years to meet profit margin targets [1] Group 4 - The main brand Yuze is positioned as an expert in skin barrier repair, while Liushen is expanding its usage scenarios and target demographics [1]

Group 1: Shanghai Jahwa - Shanghai Jahwa is confident about achieving high double-digit GMV growth for its core brands during the 618 shopping festival [1] - The employee stock ownership plan aims to enhance competitiveness, reduce turnover rates, and foster a sense of ownership among employees [1] - The company has made strategic adjustments in the past six months, including organizational design, talent development, and cultural initiatives [1] - E-commerce strategies have been refined, including inventory management, pricing adjustments, organizational restructuring, and product iterations [1] - The Yuze B5 series is planned to be a key product line on JD.com [1] - The company aims for double-digit revenue growth this year and to turn profits around [1] - The long-term profit recovery is expected to follow a timeline of 1-2 years for revenue growth, 2-3 years for profit improvement, and 3-5 years to meet profit margin targets [1] - The main brand Yuze is positioned as a skin barrier repair expert, while Liushen is expanding its usage scenarios and target demographics [1] Group 2: Zai Lab - Zai Lab introduced its pipeline drugs ZG006, ZG005, and ZGGS18, highlighting their latest developments and future plans for the next 3-5 years [2] - ZG006 is the world's first DLL3-expressing tumor tri-specific antibody, which has received clinical trial approvals from NMPA and FDA, showing promising early efficacy [2] - ZG005 is one of the first drugs in clinical research targeting the same pathway, with multiple clinical studies underway [2] - ZGGS18 has completed the dose escalation in Phase I trials in China and is currently in Phase I/II clinical trials [2] - The company plans to continuously explore the commercialization potential of its existing and upcoming products to achieve sustained revenue growth [2] - Zai Lab also discussed the sales progress and future expectations for recombinant human thrombin and the approval status of recombinant human thyroid-stimulating hormone [2] Group 3: Company Overview - Shenzhen Zhongou Ruibo Investment Management Co., Ltd. was established in 2007 and is one of the earliest private equity fund management companies in China [3] - The company focuses on secondary market securities investment and has launched over 50 private equity products in collaboration with top domestic financial institutions [3] - It obtained private fund manager qualifications in 2014 and launched its first overseas fund in 2016 [3] - The name "Rabbit Fund" reflects the company's investment culture of risk management, emphasizing the importance of risk prevention and management [3] - The investment philosophy is centered on growing alongside great companies and adapting strategies to respect market trends [3] - The company has received numerous accolades for its performance, including the "Morningstar Award" and "Golden Bull Award" [3]