Both revenue and net profit of Jahwa increased in Q1.
On the afternoon of April 21 Jahwa released its financial report for 2021 Q1. The financial report showed that Jahwa achieved double-digit growth in revenue and net profit in Q1. The revenue was RMB 2.11 billion, increasing by 27% year over year. Net profit attributable to the parent company was RMB 169 million, increasing by 41.9% year over year, and net profit attributable to the parent company after deduction of non-recurring profit and loss was RMB 199 million, increasing by 53% year over year. "I'm very happy that the hard work of the team has paid off," said Pan Qiusheng, Chairman and CEO of Jahwa, at the performance briefing regarding this financial report. It can be seen from the financial report that Jahwa's top ten projects key work in 2021, including "Herborist Rejuvenation", "Promoting the Creation of Innovative and Hot Products", "Gross Profit Improvement", "Inventory Management Optimization", and "Digital Empowerment of Offline Channels", is substantially reflected in this financial report for 2021 Q1. These powerful projects mentioned above were able to help Jahwa turn around to make steady achievements in Q1.
01
Herborist reversed losses
Vive achieved year over year growth of 120%The financial report showed that Herborist reversed losses in the area of beauty and makeup brands. Both Herborist and Herborist Derma achieved a growth of 100%. Vive achieved year over year growth of 120% thanks to its excellent performance in the department store channel. At the same time, the male brand Gf also achieved year over year growth of 80%. It is known that after confirming the brand strategy of "Herborist Rejuvenation", Jahwa continuously analyzed brands, streamlined the product lines, even shut down 462 counters, adjusted personnel, digital operations and products, and finally drove the growth of the entire brand through the astounding advances in the department store channel. Pan Qiusheng revealed that Herborist is also preparing to deepen its product image and will launch new products this year. In addition, Herborist also joined the Douyin (TikTok) store in March to help realize the digital development of Herborist. It is worth noting that the star brand "Dr.Yu", which has maintained multi-digit growth, dropped by 16% this time. "The high growth in the same period last year was promoted by the live stream marketing by top influencers, so he base was high." Jahwa officials explained in a conference call. Dr.Yu focused on increasing gross margin and improving brand profitability. In the future, it will continue to conduct medical research co-creation to ensure brand power and competitiveness of products. In the area of personal care and household cleaning brands, Liushen achieved year over year growth of more than 10%; HomeAegis achieved year over year growth of more than 40%. At the same time, the maternal and child brand Giving achieved a year over year growth of more than 60%; Tommee Tippee achieved a high-digit growth worldwide.
02
Offline channels rebounded significantly
Digital innovation pushed brands forwardOffline channels as a whole rebounded significantly based on the 170% growth in the department store channel, 90% in CS channels, and 15% in supermarket channels; the online domestic e-commerce channels achieved high single-digit growth and special channels a year over year growth of 20%. In fact Jahwa, which advocates digital transformation, has made a series of efforts in channel upgrading in recent years. These include visualizing business, transforming Jahwa's business form from experience-driven to digital-driven and from analysis of past results to predicting future trends. Jahwa has formed a new 3+3 smart retail operation system to promote the development of offline smart retail. In terms of private domain operations, Jahwa recruits, retains, and activates users, thinks about how to maximize private domains from a cross-product perspective, and responds to new trends in future development through continuous trial and error as well as innovation. Jahwa will continue to innovate its sales model to meet the changing needs of consumers' shopping context/scenes, and seize some new opportunities for future evolution through new channels, new shopping context/scenes, and new consumption. According to Jahwa, the digital transformation in the department store channel has also begun to show effect. In addition, the growth of almost all of the new brands under Jahwa is also inseparable from brand innovation. In terms of brand innovation, Jahwa strengthened its cooperation with big data platforms. At the product end Jahwa focused on key categories and packaging for future development through big data analysis capabilities such as knowledge base + incubator, intelligent new product portrait + 3D test, digital white bottle + trial marketing diagnostic function, and tests concepts and efforts to create hot style products. Taking Herborist Derma as an example, the brand launched a Niacinamide Brining and Repairing White Mask in view of the consumer demand insights such as "ingredients focused, immediate high-efficacy, high-tech and high safety". At the same time, Jahwa also established deep cooperation with Tmall Innovation Center (TMIC) has incubated new products such as Gf Multi-care Youth Essence, MAXAM Ferment Rice Refreshing & Moisturizing Series and HomeAegis Washing and Coagulation Beads, which are well received by consumers and have driven the efficient development of the brand. Meanwhile, in terms of gross profit, Jahwa's gross margin in Q1 increased by 3.45% year over year due to the increase in the gross margin of individual brands and the rapid growth of brands with high gross profit. Inventories fell by 7.58% year over year, operating cash flows rose by 46.65%, with stable operation. A complete and "new" Jahwa is now reaching consumers.
