① Net profit for the whole year was 500 million yuan, slightly less than market expectations; ② On a quarterly basis, Q4 net profit declined year-on-year during the peak season of the industry; ③ The impact of the big promotion on the company's performance was limited and needs to be improved; ④ Management said that this year's “38 Major Promotions” performance was in line with expectations.
Financial Services Association, March 15 (Reporter Luo Yichen) As beauty consumption continues to focus on big promotions, big promotion performance is becoming more and more important for brands. Against the backdrop of the lackluster performance of the “618” and “Double Eleven” promotions, Shanghai Jiahua (600315.SH)'s performance in 2023 was mixed.
This evening, Shanghai Jiahua revealed its 2023 annual report. The company achieved revenue of 6.598 billion yuan, a year-on-year decrease of 7.16%, and the scale of revenue declined for two consecutive years. According to reports, the company has made intensive business and organizational structure adjustments in recent years, cutting out some businesses with poor profit efficiency, and focusing more on improving profit levels. During the reporting period, the company collected 500 million yuan in net profit to mother, up 5.93% year on year, and gross profit margin of 58.97%, up 1.85 percentage points year on year.
Compared to previous brokers' forecast data, this performance fell slightly short of market expectations. A Financial Services Association reporter noticed that in the review report of last year's three-quarter report, several brokerage agencies predicted that Shanghai Jiahua's net profit in 2023 would be around 550 million yuan. In other words, the company's Q4 profit performance fell short of expectations.
As the peak season for beauty consumption, “Double Eleven” in Q4 every year is undoubtedly a golden period for major brands, but continuing the consistent lackluster performance of previous big promotions, Shanghai Jiahua only achieved net profit of 106 million yuan in the quarter, a year-on-year decline of 33.31%. A CIFA reporter noticed that the company participated in a super live broadcast event during the “Double Eleven” period last year, but judging from the performance, the overall momentum may still be limited.
In this context, Shanghai Jiahua proposed to achieve major breakthroughs through content output while focusing on daily operations. At an online exchange meeting held this afternoon, the company's management said in response to the Finance Association reporter that it judged that the impact of the big promotion on performance will gradually decrease. Doing a good job in daily sales, attracting new customers, and repurchasing old customers is still the company's top priority, stressing that the company will continue to play a consistent way of playing with big promotions.
Based on this, the company's management proposed that the “good products+high traffic+low price” sales model is changing, and consumers will prefer content output and interactive experiences. “With the 'old baby' concept, MeijiaNet successfully broke the e-commerce interest circle. When prices did not change much, last year, Double Eleven became the most popular category on the Douyin platform. While adhering to the high cost ratio, we believe that good content output and interactive experience are becoming more important.”
The “38 Big Promotions” that just passed was the highlight of the industry in the first quarter of this year. Referring to the big promotion performance, the company's management euphemistically stated, “The overall performance of the beauty brand is within expectations, but there is still a gap between the company's goals. Overall, beauty consumption is under pressure, and consumers' willingness to stock up is slowly picking up. This is a challenge facing the entire industry. Of course, we are also seeing opportunities for the rise of domestic goods, which are more popular with consumers.”