Investment Rating - The investment rating for the company is "Buy" with a target price of 22.8 CNY [6][17]. Core Insights - The company reported better-than-expected performance in Q1 2025, with a revenue of 17.04 billion CNY, down 10.59% year-on-year, and a net profit of 2.17 billion CNY, down 15.25% year-on-year [1]. - The company plans to implement an equity incentive plan, aiming to revitalize its operations and improve profitability over the next three years [4]. - The strategic adjustments have led to short-term pressure across various segments, but the company is expected to recover as it optimizes its business structure and channels [3]. Financial Performance Summary - For 2024, the company reported a revenue of 56.79 billion CNY, down 13.93% year-on-year, and a net profit of -8.33 billion CNY, down 266.60% year-on-year [1]. - The gross margin for 2024 was 57.60%, a decrease of 1.37 percentage points year-on-year, while the net profit margin was -14.67%, down 22.25 percentage points year-on-year [2]. - The company expects revenues of 62.3 billion CNY in 2025, 66.7 billion CNY in 2026, and 71.2 billion CNY in 2027, with corresponding net profits of 3.4 billion CNY, 4.9 billion CNY, and 5.5 billion CNY respectively [4]. Segment Performance Summary - Personal care products (including Six God and Meijiajing brands) generated 23.79 billion CNY in revenue for 2024, down 3.42% year-on-year, with a gross margin of 63.59% [3]. - The beauty segment (including Yuze, Baicaojing, Shuangmei, and Diancui brands) saw revenues of 10.50 billion CNY, down 29.81% year-on-year, with a gross margin of 69.67% [3]. - Online sales accounted for 44.74% of total revenue, generating 25.39 billion CNY, down 9.66% year-on-year, while offline sales accounted for 55.26%, generating 31.36 billion CNY, down 16.97% year-on-year [3].

Core Viewpoint - The domestic beauty market shows a stark contrast, with Proya becoming the first domestic brand to exceed 10 billion yuan in revenue, while Shanghai Jahwa faces a significant decline in net profit, marking a challenging period for the company [1][2]. Financial Performance - Shanghai Jahwa reported a revenue of 5.679 billion yuan for 2024, a year-on-year decrease of 13.93% [1]. - The company experienced a net loss of 833 million yuan, a staggering decline of 266.6% compared to the previous year, marking the largest loss since the company began publishing annual reports [1][2]. - The overseas business revenue was 1.415 billion yuan, down 11.43% year-on-year, contributing to the overall decline in profit [2][3]. Strategic Adjustments - The new CEO, Lin Xiaohai, initiated significant organizational reforms aimed at shifting the business model from "channel-driven" to "brand-driven" [1][9]. - The company undertook strategic adjustments, including reducing inventory in department stores and transitioning from an agency model to a self-operated model for online distributors, which negatively impacted current revenue [2][3]. Goodwill Impairment - The company recorded a goodwill impairment of 610 million yuan related to the acquisition of the UK infant care brand "Tommee Tippee," which was purchased for nearly 2 billion yuan in 2017 [2][3]. - The impairment was attributed to factors such as low birth rates overseas, intensified competition in the infant product category, and reduced inventory by distributors [3]. Market Position - Shanghai Jahwa's revenue has significantly lagged behind Proya, which has seen its revenue gap widen to 5 billion yuan, with Proya achieving over 10 billion yuan in annual revenue [6]. - The beauty segment of Shanghai Jahwa has been particularly underperforming, with a revenue decline of 29.81%, while the personal care segment remains the largest contributor at 2.379 billion yuan, down 3.42% [6]. Online vs. Offline Sales - The company's online revenue for 2024 was 2.539 billion yuan, a decrease of 9.66%, while offline revenue was 3.136 billion yuan, down 16.97% [6]. - The online gross margin increased by 1.8 percentage points to 63.58%, compared to 52.78% for offline channels, indicating a more favorable cost structure for online sales [6][7]. Future Outlook - Despite the poor performance in 2024, the first quarter of 2025 showed signs of recovery, with total revenue of 1.704 billion yuan, a year-on-year decline of 10.59% but a quarter-on-quarter increase of 41.73% [12]. - The company aims to enhance its online capabilities and adapt to changing consumer behaviors by focusing on interest-based e-commerce and developing content-driven online operations [10].

来源：文汇报 ■本报记者 唐闻佳 郑捷回忆，2003年，上海家化与瑞金医院皮肤科开启中国医学护肤领域最早的"医研共创"实践。这个跨 界牵手，因患者"痛点"而起。 皮肤健康不仅关乎美丽，更关乎全身健康。"研究发现，坚持皮肤屏障护理，对认知功能衰退、糖尿病 等都有一定保护作用。"近日在上海举行的全国皮肤屏障专业峰会上，瑞金医院皮肤科终身教授郑捷分 享这一前沿进展。 由瑞金医院主导的一项项研究，不仅写成论文，刷新人们对"皮肤健康"的认知，更变成了市场上的畅销 产品：被誉为"中国第一个医学护肤品"的玉泽皮肤屏障修护身体乳，多次位列平台"回购率"第一位置。 当前，我国护肤品市场正迎来前所未有的变革。《中国护肤品消费趋势报告》显示，与过去一味追求国 际大牌不同，2024年，超八成消费者表示经常购买国产护肤品。 在玉泽"叫好又叫座"的背后，"医研共创"的合作模式受到关注：瑞金医院和上海家化这两家"百年老 店"22年牵手，蹚出一条新路。 "科研基因"成国货护肤品硬核营销标签 "皮肤不仅是人体屏障，更是神经、内分泌、免疫系统'三位一体'的呈现。"郑捷介绍，近10年，三项摘 获诺贝尔奖的科研成果——Toll样受体、昼夜节律、辣椒 ...

Core Viewpoint - Shanghai Jahwa's 2024 annual report reveals a significant decline in revenue and a net loss, marking the first loss since its listing, attributed to historical issues and challenges in overseas markets [1][2] Financial Performance - The company reported a revenue of 5.679 billion yuan, a year-on-year decrease of 13.93% [1] - Net profit showed a loss of 833 million yuan, the first loss in its history [1] - The overseas business incurred a loss of approximately 100 million yuan, with goodwill impairment of about 610 million yuan [1] Strategic Adjustments - CEO Lin Xiaohai indicated that the company has been addressing long-standing issues and aims to operate with a lighter burden moving forward [1] - The company reduced 7,000 SKUs in the last quarter, optimizing inventory and product offerings [2] - Inventory turnover days in the department store channel decreased from 342 days to 89 days due to strategic adjustments [2] Future Outlook - The company is focusing on online channel development and has improved its content production capabilities for interest e-commerce [2] - Shanghai Jahwa aims to return to a growth trajectory in the new fiscal year, targeting double-digit growth and profitability recovery [2]

Core Viewpoint - Shanghai Jahwa has reported its first loss in 20 years, primarily due to the acquisition of Mayborn Group Limited, which resulted in significant goodwill impairment and operational challenges [2][5]. Financial Performance - In 2024, Shanghai Jahwa's revenue was 5.679 billion yuan, a year-on-year decline of 13.93%, with a net loss of 833 million yuan, more than doubling from the previous year [1][2]. - Mayborn's revenue and net profit for 2024 were 1.417 billion yuan and 714 million yuan, respectively, reflecting year-on-year declines of 11.49% and 880.18% [3]. Goodwill Impairment - The impairment of goodwill amounted to 613 million yuan, significantly impacting Shanghai Jahwa's financial results [2]. - As of the end of 2024, the remaining goodwill stood at 1.486 billion yuan [4]. Business Strategy and Management Changes - Following the management change, Shanghai Jahwa is re-evaluating Mayborn's business growth targets, with early signs of recovery in Q1 2025 [4][6]. - The company is undergoing a transformation that has temporarily pressured its performance [5]. Revenue Challenges - Both major product lines, personal care and beauty, experienced revenue declines in 2024, with personal care generating 2.379 billion yuan (down 3.42%) and beauty generating 1.05 billion yuan (down nearly 30%) [4]. Future Initiatives - Shanghai Jahwa's strategy for 2025 includes launching new products, focusing on online platforms while maintaining offline channels, and increasing investment in brand building [7][9]. - The company plans to collaborate with instant retail platforms like Meituan, Ele.me, and JD.com to enhance its O2O business [8]. Sales and Marketing Expenses - In 2024, sales expenses were 2.652 billion yuan, accounting for 47% of revenue, with plans to maintain the sales expense ratio while reallocating funds towards brand development [9].

上海家化董事长兼首席执行官林小海将其定义为"卸包袱"与"寻出路"的一年——砍掉历史包 袱、重塑品牌矩阵、重构渠道逻辑。这场转型背后，既有壮士断腕的决绝，也有对国货未来竞 争力的深思。 根据财报数据，2 0 2 4年，上海家化实现营业收入5 6 . 7 9亿元，同比下滑1 3 . 9 3%；归母净利润 亏 损 8 . 3 3 亿 元 ， 其 中 商 誉 减 值 6 . 1 亿 元 ， 海 外 业 务 亏 损 1 亿 元 ；2 0 2 5 年 一 季 度 ， 营 收 1 7 . 0 4 亿 元，同比下滑1 0 . 5 9%。 从表面上看，这是一份"触底"的成绩单，但，" 深蹲是为了更好地起跳。 " 林小海在媒体电话 会上表示。 4月2 4日晚，上海家化发布2 0 2 5年一季报暨2 0 2 4年报。 2 0 2 4年的中国美妆市场，K型分化加剧，国际品牌与新兴国货的夹击下，百年老牌上海家化交 出了一份"矛盾"的财报：营收利润双降，但应收账款、存货周转、现金流等指标显著优化。 2 0 2 4年，上海家化完成了深刻的业务和组织架构调整，业绩主要受到海外业务减值和国内业 务战略调整的影响。 其中，以母婴品牌汤美星为主的 ...

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company is undergoing a painful adjustment period in 2024, with expectations for performance recovery in 2025 [2][7] - The company has implemented strategic adjustments in its domestic business, including reducing inventory and closing underperforming stores, which has led to a temporary decline in revenue [3] - The company is focusing on online transformation and enhancing operational efficiency through organizational restructuring [3][4] - A stock incentive plan has been introduced to boost employee confidence and align interests with future performance goals [6][7] Revenue Summary - In 2024, the company achieved revenue of 5.679 billion yuan, a year-on-year decrease of 13.93% [2][9] - For Q1 2025, revenue was 1.704 billion yuan, down 10.59% year-on-year [2] - Revenue by product category in 2024: Personal Care 2.379 billion yuan (-3.42%), Beauty 1.050 billion yuan (-29.81%), Innovation 0.830 billion yuan (-19.38%), Overseas 1.415 billion yuan (-11.43%) [4] Profit Summary - The company reported a net profit of -833 million yuan in 2024, a decline of 266.60% year-on-year [2][9] - In Q1 2025, the net profit was 217 million yuan, down 15.25% year-on-year [2] - The gross margin for Q1 2025 was 63.40%, with a net margin of 12.75% [5] Future Earnings Forecast - Revenue projections for 2025-2027 are 6.199 billion yuan, 6.763 billion yuan, and 7.315 billion yuan respectively [7][9] - Expected net profits for the same period are 363 million yuan, 458 million yuan, and 533 million yuan respectively [7][9] - The earnings per share (EPS) forecast for 2025-2027 is 0.54 yuan, 0.68 yuan, and 0.79 yuan respectively [7][9]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 27.76 [8][9]. Core Views - The company reported a revenue of RMB 5.679 billion for 2024, a year-on-year decrease of 13.93%, and a net profit attributable to shareholders of RMB -833 million, indicating a transition from profit to loss [1]. - In Q1 2025, the company achieved a revenue of RMB 1.704 billion, down 10.59% year-on-year, with a net profit of RMB 217 million, down 15.25% year-on-year. However, there are signs of improvement in actual shipments and terminal sales [1][2]. - The company has initiated an employee stock ownership plan, which is expected to enhance internal motivation and align employee interests with company performance [3]. - The company’s multi-brand online performance showed significant growth in Q1 2025, particularly on platforms like Douyin, with several brands exceeding sales targets [4]. Summary by Sections Financial Performance - The company’s revenue and profit forecasts for 2025 to 2027 are as follows: - 2025: Net profit of RMB 334 million, a year-on-year increase of 140.11% - 2026: Net profit of RMB 488 million, a year-on-year increase of 46.15% - 2027: Net profit of RMB 537 million, a year-on-year increase of 10.06% - Corresponding EPS for these years are projected at RMB 0.50, RMB 0.73, and RMB 0.80 respectively [5][7]. Segment Performance - The beauty segment experienced a revenue decline of 29.81% year-on-year in 2024, while personal care revenue decreased by 3.42% year-on-year. Online revenue for 2024 was RMB 2.539 billion, down 9.66% year-on-year, while offline revenue was RMB 3.136 billion, down 13.85% year-on-year [2]. Employee Incentives - The employee stock ownership plan involves up to 45 participants, representing 0.72% of the total share capital, with a total investment not exceeding RMB 77.51 million. The plan includes performance targets for the years 2025 to 2027 [3]. Market Position and Valuation - The company is currently valued at a price-to-sales (PS) ratio of 3 times for 2025, reflecting its ongoing transformation phase. The target price has been adjusted from RMB 24.98 to RMB 27.76 based on improved sales performance in Q1 [5][8].

Core Viewpoint - Shanghai Jahwa has faced challenges in 2024 but aims to return to double-digit revenue growth in 2025 by adjusting its business channels and investing in brand and product development [1][3]. Financial Performance - In Q1 2025, Shanghai Jahwa reported revenue of 1.704 billion yuan and a net profit of 217 million yuan [1]. - The company experienced a decline in overall performance in 2024 due to factors such as low birth rates overseas and increased competition in the baby care sector [2]. Goodwill Impairment - The company conducted goodwill impairment tests on its baby care and maternal feeding product acquisitions, leading to a cautious approach in accounting for goodwill [2]. - The CFO stated that the impairment was due to significant discrepancies between brand revenue and initial business plans, as well as strategic adjustments [2]. Business Channel Adjustment - Shanghai Jahwa has made progress in brand and channel adjustments, with a 5.5 percentage point increase in online revenue contribution in Q1 2025 [3]. - The company expanded its store presence by nearly 40,000 in new channels, achieving double-digit growth in sales from these emerging channels [3]. Future Outlook - The management is optimistic about the future of its overseas business, particularly the performance of its subsidiary, Tomy Star, which achieved revenue growth in Q1 2025 [2]. - The company is focusing on core brands, brand building, and efficiency improvements while addressing challenges such as offline transformation and tariff impacts on overseas operations [3]. Strategic Considerations - The ability of Shanghai Jahwa to return to growth in 2025 will depend on effective execution of organizational adjustments, finding products that enhance consumer purchasing intent, and the competitive landscape of the industry [4].

Core Viewpoint - Shanghai Jahwa is undergoing a transformation by shedding historical burdens, optimizing its product lines, and focusing on core brands to achieve a turnaround from losses to profitability in the new fiscal year [1][2]. Group 1: Financial Performance and Adjustments - The company reported a net loss of 833 million RMB last year, primarily due to operational losses of approximately 100 million RMB and goodwill impairment of about 610 million RMB [2]. - The overseas revenue, mainly from the Tommee Tippee brand, decreased by 11.43% to 1.415 billion RMB, while Q1 overseas revenue was approximately 347 million RMB [3]. - The company achieved an operating cash flow of 273 million RMB in 2024, a year-on-year increase of approximately 164.9% [3]. Group 2: Product and Brand Strategy - The company has significantly reduced its SKU count from over 10,000 to 3,000, focusing on core products to enhance efficiency and profitability [5]. - The management acknowledged a decline in gross margins across beauty, innovation, and overseas categories, attributed to market competition and aging products [4]. - New product launches and pricing adjustments, such as the reduction of promotional efforts for the Bai Caoshu brand, have led to improved conversion rates despite lower average prices [4]. Group 3: E-commerce and Channel Development - The company is enhancing its online presence, with brands like Yuze achieving over 75% of sales through online channels, and significant growth in live streaming sales [8][9]. - The management emphasized the importance of interest e-commerce and has made substantial progress in building capabilities in content production and advertising [10]. - New emerging channels have shown a year-on-year sales growth of over two digits, with plans to expand store presence significantly [10][11].