Shanghai Jahwa(600315) 证券时报网·2025-01-24 10:27Core Viewpoint - The cosmetics market is facing unprecedented growth pressure, with a 1.1% year-on-year decline in retail sales for 2024, prompting Shanghai Jahwa United Co., Ltd. to issue a profit warning for the year, expecting a net loss of between 710 million to 880 million RMB [1][2]. Group 1: Financial Performance - Shanghai Jahwa anticipates a significant net loss for 2024 due to goodwill impairment and adjustments in its main business, with a projected net profit loss of 710 million to 880 million RMB compared to the previous year [1]. - The company plans to recognize a goodwill impairment of approximately 550 million to 680 million RMB, reflecting the impact of market conditions and strategic adjustments [2]. Group 2: Strategic Adjustments - The company is undergoing a series of strategic adjustments, including reducing inventory in department stores and transitioning from an agency model to a self-operated model, which has affected current revenue and profit but aims to enhance online development and brand building [2][5]. - Shanghai Jahwa's management is focusing on four key areas: core brands, brand building, online presence, and operational efficiency, to improve decision-making and organizational structure [5]. Group 3: Share Buyback and Future Outlook - The company announced a share buyback plan of 100 million to 200 million RMB to boost employee morale and align interests between employees and the company, reflecting confidence in future growth [4]. - Despite facing short-term challenges due to reforms, the company is gradually emerging from a low point and aims to regain market confidence while striving to become "the Procter & Gamble of China" [6].