Core Insights - Shanghai Jahwa held its 2024 annual shareholder meeting on June 25, where management discussed strategic direction, operational philosophy, brand development, and channel reform [1] - CEO Lin Xiaohai expressed that the company's performance over the past year "basically met expectations" and emphasized the importance of operational capability moving forward [1] Strategic Focus - The company is deepening its "Four Focuses" strategy, which includes focusing on core brands, brand building, online presence, and efficiency [2] - Lin Xiaohai highlighted that the strategic transformation is showing initial results, with brands undergoing rebranding and repositioning [2] - The Yuze brand has strengthened its collaboration with renowned hospitals, leading to comprehensive upgrades in brand image and product offerings [2] - The Six God brand has introduced a new slogan to promote a "refreshing culture," targeting younger consumers [2] - The company has categorized its brands into three tiers for differentiated resource allocation, with Six God and Yuze in the top tier [2] Performance and Growth - The company's major brands achieved double-digit growth across online channels during the 618 shopping festival, attributed to organizational optimization and strategic focus [3] - Lin Xiaohai indicated that the organization is entering a "deep water zone" of reform, with a focus on enhancing operational capabilities and brand investment [4] - The company aims for double-digit revenue growth by 2025, which is positioned as a pivotal year for brand development and competitive advantage [4]

Core Viewpoint - Shanghai Jahwa is undergoing a significant transformation under the leadership of Lin Xiaohai, who emphasizes the need for a mission-driven team and a shift from internal competition to external competitiveness to revitalize the company [2][6][7]. Financial Performance - In 2024, Shanghai Jahwa reported a net profit attributable to shareholders of -833 million yuan, marking its first loss in recent years [4][10]. - The company's operating revenue for 2024 was approximately 5.68 billion yuan, a decrease of 13.93% compared to 2023 [5][10]. - The revenue trend from 2021 to 2024 shows a continuous decline, with figures of 76.46 billion yuan, 71.06 billion yuan, 65.98 billion yuan, and 56.79 billion yuan respectively [9]. Strategic Direction - Lin Xiaohai has initiated a "second entrepreneurship" strategy, focusing on organizational restructuring and operational efficiency to combat the company's recent downturn [4][6]. - The management aims for a double-digit revenue growth and profitability by 2025, with a focus on executing new strategies effectively [11][14]. - The company is fostering a competitive environment among its brands, with a goal to enhance external competitiveness starting from the 2025 "6·18" promotional event [7][14]. Market Perception - The long-term decline in stock price reflects the company's past operational challenges, with a drop of over 60% since its peak in June 2021 [8][9]. - As of June 25, 2024, the stock price was reported at 20.58 yuan, with a total market capitalization of 13.83 billion yuan [9]. Management and Governance - The management team, including CFO Luo Yongtao, expressed confidence in the company's future despite recent financial struggles, attributing the stock price to a comprehensive evaluation of the company's performance [8][11]. - Lin Xiaohai emphasized the importance of building trust with stakeholders through consistent performance and communication, which is essential for gaining greater authority from the controlling shareholder [15][18].

Core Viewpoint - Shanghai Jahwa is undergoing a "second entrepreneurship" under the leadership of Lin Xiaohai, aiming to reverse the company's recent decline and achieve a revival in its performance [5][10]. Financial Performance - In 2024, Shanghai Jahwa reported a net profit attributable to shareholders of -833 million yuan, marking its first loss in recent years [8][21]. - The company's revenue has been on a downward trend, with figures of 76.46 billion yuan in 2021, 71.06 billion yuan in 2022, 65.98 billion yuan in 2023, and 56.79 billion yuan in 2024, reflecting a continuous decline [17][21]. - For the first quarter of 2025, the revenue was 17.04 billion yuan, a decrease of 10.59% year-on-year, with a net profit of 217 million yuan, down 15.25% [21][22]. Strategic Direction - Lin Xiaohai emphasized the need for a mission-driven team and a sense of urgency to transform the organization into a competitive entity [10][11]. - The company aims to shift from "internal competition" to "external competition," with a focus on performance relative to competitors starting from the 2025 "6.18" promotional event [12][20]. - The management team is tasked with executing the new strategy effectively to translate it into tangible business results [21]. Stock Performance - Shanghai Jahwa's stock price has seen a significant decline, dropping over 60% since its peak of 62.91 yuan per share in June 2021, closing at 20.58 yuan on June 25, 2024, with a total market capitalization of 13.83 billion yuan [15][19]. - The management acknowledged that the current stock price reflects past operational performance, but they remain confident about future improvements [13][19]. Management and Governance - Lin Xiaohai highlighted the importance of building trust with shareholders, stating that trust is earned through consistent performance and victories [26][27]. - The company is focused on becoming a leading domestic and international daily cosmetics company, requiring a shift in mindset and organizational adjustments [27][29].