To Beauty·To FutureShanghai Jahwa held 2021 StrategicConference

Shanghai Jahwa United Co., Ltd (short name as “Shanghai Jahwa”, Code No. 600315 ) held “To Beauty·To Future”--- 2021 StrategicConference online in March 18th, 2021. At theconference, the companyreleased a new image propaganda film with the theme of "Dedicated to Beauty ". Furthermore,Alex Pan,Chairman and CEO of Shanghai Jahwa, led the management team interpreted the thinking and strategy planning of the company's future developmentfrom the different angles of corporate strategy. Brand innovation, channel advancement, corporate culture,digitalization, such content showed the new image of Shanghai Jahwafully as the leader of China's beauty and daily chemical industry. In addition to the sharing of its own management team, the company also invited Yu Jian, Managing Director，Greater China，Kantar Worldpanel, to share the industry’s macro environment and trends. At the end of the conference, the company's management, industry experts, and important partners also discussed the topic of "Digitalization in the New Consumer Era" at the round table, and had adeep speculation on the future development of the industry and the company.

Alex Pan: Journey to Renaissance

At the press conference, Chairman and CEO Alex Pan took the lead to give a deep interpretation of the company's development strategy, operation policy, corporate culture, and ESG management.

Alex Pan said that Shanghai Jahwa has a history of 123 years since it established. The company continues to provide consumers with the most beautiful products and services with ingenuity. The company also released a brand-new corporate culture system with a brand-new vision, mission, operating principle, values and corporate slogan lately. Alex Pan deconstructed the operation policy of "Onecentricity--Consumer-centricity, two drivers--brand innovation and channel evolution, and three enablers--culture, system&process, and digitalization": "The company is consumer-centricity, and cooperates with other institutions and big data platforms to gain comprehensive insights into consumers, so as to conductproducts research and development tomeet consumer needs correctly.On brand innovation, the company will provide the most beautiful service byhaving an insight intoconsumers, focusing on industry trends and future judgments, focusing on big data, and focusing on model innovation in marketing and resource investing. In channel advancement, the company promotes channel innovation through five core actions: strategy cooperation, digitalization, smart retail, private domain, and business model innovation. At the same time, it will continue to capture the new market opportunities arising in future through new channels, new scenes, and new consumption." In addition, Alex Pan also stated that Shanghai Jahwa will use the three enablers of "culture, systems & processes, and digitalization" to help the company create morevalue for consumers and give maximum support to brand innovation and channel advancement.

At the conference Alex Pan introduced that the company will use practical actions to realize its commitment to the sustainable development of a community with a shared future for mankind: "Shanghai Jahwawas the first companyto releasethe ESG report of beauty and daily chemical companyin Chinese stock market. The report fully disclosed the actions and achievements of Shanghai Jahwa in fulfilling its social responsibilities and promoting sustainable development. In order to implement China’s carbon emissions '3060 plan' proposed by President Xi Jinping, we have also put forward a series of more advanced goals. The company will achieve its peak carbon emissions in 2025, and achieve carbon neutrality across the value chain by 2050, setting an example for the entire industry."

Brand Innovation: Launched the "HIT" brand strategy for the first time

In brand innovation,the company proposed a new HIT brand strategy (Health·Beauty, Insight·Innovation, Tailor·Creation)based on the insights of industry trends, which is healthy and beautiful, insightful innovation and unique personality. At the conference, the company's chief marketing officer, chief digital officer and senior R&D director explained this strategy in detail.

Health· beauty reflects the conception of the Shanghai Jahwabrand in beauty and skin care, and bring healthier and more lasting authentic beauty to consumers. The company has reorganized and upgraded the brand positioningof Herborist, Dr. Yu, VIVE, Herborist Derma, Gf, and Maxam The maternal and child, personal care and home clearing brands of Giving, TommeeTippee, Liushen, and Homeaegis are based on the core of "natural" and "healthy" which will bring a comfortable and peaceful life to consumers. In addition, Shanghai Jahwa insists on empowering with science and technology, deepening the "medical research co-creation", rooting in the research of Chinese herbal medicines, strengthening independent R&D innovation with the entire chain R&D model and multi-dimensional TCM modern R&D methods, and deepening technical research and development to establish competition barriers and advantages, continue to bring more efficient products to consumers.

Insight innovation focuses on consumers and taps into consumer requirements. Shanghai Jahwa is committed to providing consumers with products of lifetime value. For this purpose, in order to explore the needs of consumers at different stages, the company uses digitalizationto build four-step product development methodology including track identification, optimization concepts, optimization formulas and system optimizationto ensure that the company's products meet market needs through big data analysis, consumer research and test feedback at each key node. In early March, Shanghai Jahwa and Tmall New Product Innovation Center (TMIC) signed an in-depth cooperation agreement. The company will use TMIC's comprehensive consumer big data and industry insight capabilities to promote R&D and product innovation. On the basis of big data, the company also co-created products with KOC, KOL, and employees to further promote insight and innovation.

Tailor·Creation means that Shanghai Jahwa will deeply interpret the diverse and individual requirements of consumers. Consumers are no longer satisfied with the products and one product for the experiences from one thousand people. With the help of AI technology and deep research and development capabilities, the company provides consumers with customized products and creates the most beautiful products and experiences for everyone. In addition, the company also uses personalized marketing methods and private domain ecological development to meet the unique needs of consumers in different circles, and achieves breaking out and breaking the circle from the three aspects of personalized products, personalized brand communication and personalized consumer interaction.

Channel Evolution: Five measures to promote channel innovation and create a 3+3 new retail system

In the part of channel evolution, the company's deputy general manager and chief operating officer put forward five measures at conference to promote channel innovation through strategy cooperation, digitalization, smartretail, private domain, and model innovation.

The company has strengthened strategy cooperation with major commercial groups across the country in order to integrate and operate resourcesdeeply,pushingbusiness growth up. Focusingon creating a digitalization system, the company achieveda growth of online and offline channels by creating the system, summarizing methodologies, promoting business implementation, and using data to empower each channels. Establishing a smart retail system,the company get through O2O and D2C, and use Internet technology to promote B2B to improve efficiency.In private domain, the company has also established smart cloud stores for offline channels system to strengthen private domain operations. Shanghai Jahwa will continue to innovate its sales model to meet the changing requirements of consumers' shopping scenes.

Based on the digital transformation to consolidate current channels, Shanghai Jahwa has successfully incubated commercial and cross-border innovation channels toenhance channel coverage and consumer coverage. Through the new marketretail trends, the company has formed a "3+3" smart retail operation system. The first "3" focus on the C terminal, and the company will vigorously develop the home platform, store platform and smart cloud store to reach consumers.The second "3" is for the B terminal, the company will use the internet distribution system, community operations, and through the retail terminal membership operationtoimprove businesses.

At the conference, Shanghai Jahwa and the well-known retailer Watsons held an in-depth cooperation signing ceremony. Watsons has more than 4,100 outlets across the country, more than 63 million active members, and it is an industry leader in new retail business and digitalization operations. This strong alliance will bring Shanghai Jahwa benefits indigitalizationmarketing and digitalization, achieve mutual benefit and win-win, and create greater value for consumers.

Panelist: SharingTrend and ideas collision at the forefront of the market

At the conference, the company invited Yu JianManaging Director，Greater China，Kantar Worldpanel, to share the 6 latest industry trends which arebasic comprehensive conditioning, the key of functional products, unique value positioning, exclusive domestic products, young people leading personalization trends and sinking into the broad market. The company will promote brand innovation and channel evlutionunder the six major trends.

At the panel discussionon the theme of "Digitalization in the New Consumer Era", Feng Guohua,Independent Director, Shanghai Jahwa, Yu Jian Managing Director，Greater China，Kantar Worldpanel,and Nie Wei, Head of Marketing and Mobile Commerce，Watsons China shared together their unique views and insights. Panelists agreed that digitalization will be anenabler for companies in the consumer goods and retail industries to seize industry development opportunities. That how to create digitalization capabilities has become a question whichcompanies need to think about in the next transformation. Shanghai Jahwa’s "123 operationprinciple" includes the evolution of enterprises in digitalization, and the company will accelerate the digitalization transformation of R&D, marketing, and production and sales supply chains in the future.

2021 marks the 123rdyearssince Shanghai Jahwa is established and the 20thyear of the company's A-stock marketlisting. The company has demonstrated the vitality of a century-old brand to keep pace with the times, and also demonstrated the unlimited development potential. In 2021, Shanghai Jahwa has been on the road of revivalsteadily and far. In the future, the company will uphold the original intention of "Dedicated to Beauty", pursue the most beautiful products and services, maximize the value for consumers, employees, shareholders and society, and bring Chinese beauty to the world.