Shanghai Jahwa(SH:600315) Zhong Guo Jing Ying Bao·2025-05-04 03:36Core Viewpoint - Shanghai Jahwa reported its first loss since going public in 2024, but turned profitable in Q1 2025 with revenue of 1.704 billion yuan and a net profit of approximately 217 million yuan, indicating a recovery and a focus on growth moving forward [2][3]. Financial Performance - In 2024, Shanghai Jahwa achieved revenue of 5.679 billion yuan, a year-on-year decrease of 13.93%, and a net profit of -804 million yuan, a decline of 260.72% [2][3]. - For Q1 2025, the company reported revenue of 1.704 billion yuan, a year-on-year decrease of approximately 10.6%, while net profit was around 217 million yuan [3][4]. Business Strategy and Adjustments - The decline in performance was primarily attributed to goodwill impairment related to the acquisition of the UK baby brand Tommee Tippee, which faced challenges due to low birth rates and increased competition [3]. - The company is undergoing strategic adjustments, including inventory reduction in department stores and transitioning from distributor to self-operated e-commerce channels [4][5]. Online and Offline Business Development - Online business revenue grew by 10.4% year-on-year in Q1 2025, with online sales accounting for a 5.5% increase in proportion [4]. - The company expanded its new retail channels, opening 38,000 new stores in Q1, with sales in emerging channels experiencing double-digit growth [5]. Brand Strategy - Shanghai Jahwa is focusing on core brand development through a "four focus strategy," which includes concentrating on brand building, online presence, and operational efficiency [6]. - Brands are categorized into three tiers: first-tier brands (Liushen and Yuze) are positioned as market leaders, second-tier brands (Baicaojie and Meijiajing) require clearer positioning, and third-tier brands are seen as having potential but need innovative strategies [6][7]. Pricing and Product Strategy - The company has made price adjustments for certain products, such as the Baicaojie Taiji line, to improve conversion rates without affecting gross margins [7]. - Inventory clearance and SKU optimization were implemented to address old stock issues, with plans to further compress SKUs in the new fiscal year [7].