Shanghai Jahwa Reports 260% YoY Net Profit Decline Amid Strategic Overhaul

On March 17, Shanghai Jahwa released its FY2024 earnings report, revealing a sharp downturn in performance due to goodwill impairment charges linked to its baby care and maternal & infant product businesses. The company, already in the midst of a major restructuring, saw additional pressure on its bottom line.

For 2024, Shanghai Jahwa’s total revenue dropped 13.93% YoY to ¥5.679 billion, while it posted a net loss of ¥802 million, a stark contrast to the ¥563 million net profit recorded the previous year—marking a 260.72% decline.

Beyond impairment-related losses, Shanghai Jahwa’s strategic shifts also contributed to short-term financial strain.

Despite the immediate impact, the company emphasized that these adjustments are designed to strengthen long-term sustainability.

Back in February 2024, Shanghai Jahwa had already issued a profit warning, signaling potential challenges ahead. Even without this, a review of the company’s first three quarters would have pointed to a difficult fiscal year.

In May 2024, Lin Xiaohai took over as CEO, spearheading a strategic overhaul and internal restructuring, including changes to the company’s domestic business structure.

Such periods of transition often come with short-term turbulence, particularly when shifting sales channels and business models—and Shanghai Jahwa is no exception. However, during Shanghai Jahwa’s Q3 2024 earnings briefing for beauty brands on the Shanghai Stock Exchange, Lin Xiaohai hinted at a potential recovery in the first half of FY2025.

Meanwhile, Dr. Yu and Liushen, two of Shanghai Jahwa’s strongest-performing brands, are set for further upgrades and innovation.

As sun care season kicks off in spring, Dr. Yu has launched a next-generation large-molecule sunscreen, while Liushen—famous for its floral water—is expanding into new usage scenarios with the introduction of the Liushen Pocket Egg. These updates, particularly Liushen’s playful and creative new product, could help boost Shanghai Jahwa’s performance in the first half of FY2025.