Byhealth’s revenue totaled 3.125 billion Yuan in H1 with net profit attributable to the parent increased by 10.96%

2020.07.30

On the evening of July 29, Byhealth Co., Ltd. (300146.SZ, hereinafter referred to as "Byhealth" or "the Company") disclosed the 2020 semi-annual performance report. According to the report, the Company's operating revenue from January to June this year was 3.125 billion Yuan, a year-on-year increase of 5.23%, and the net profit attributable to shareholders of listed company was 962 million Yuan, a year-on-year increase of 10.96%. As a global leader in Vitamin & Dietary Supplements (VDS), Byhealth has overcome several external adverse factors, shown steady momentum and sustained growth in the 2020 semi-annual examination.

Since the outbreak of COVID-19, the domestic consumer market has been impacted to varying degrees. As Byhealth stated in the report, due to the pandemic, the Company's production, marketing, and new product launch in the first half of the year have been delayed compared to the normal schedule, and the off-line business of the Company has also been affected to a certain extent. In the first half of the year, the Company's domestic off-line channel revenue fell by 4.35% year-on-year, while on-line business achieved rapid growth, with domestic on-line channel revenue increased by 46.83% year-on-year. Despite the global spread of the COVID-19 and the existence of repeated outbreak in Australia, the development of cross-border e-commerce platforms has brought new impetus to the business growth of LSG in Australia. In the first half of the year, LSG's overseas business achieved operating income of A$66 million, a year-on-year increase of 16.74%, and a year-on-year increase of 30.73% after the inter-segment offset.

In March of this year, Liang Yunchao, the Company’s Chairman, proposed that “Byhealth will move from ‘pressure-fed growth’ to leading the restorative growth of the entire VDS industry”. But how to implement “change” in the growth model? The key word, “activation”, has become the “switch” for Byhealth to break the ice in 2020.

In order to continuously activate its "brand power", Byhealth launched a brand upgrade in May, with a new logo and new packaging for its entire product line, and all the terminal stores have also been redecorated to convey the brand attitude with a younger and more vivid image and increase investment in the future.

At the same time, the Company has adopted changes to apply the "4 2 1" core market strategy with the focus on multiple varieties and rebuild a core sales model suitable for multiple hero products, to activate the entire VDS business and expand the market share. In addition, the Company is actively working to activate the "Life-Space" brand business by reaching out to all channels of "Life-Space" domestic products, as well as local Australian and cross-border platforms. Although the launch and promotion of new products have been affected to varying degrees by COVID-19, the relevant business is gradually recovering.

In terms of research and development, the Company continued to increase investment in the first half of the year, cooperating with world-renowned professional research institutions to build a cutting-edge research system in life science and nutrition science, actively conducting research on new functional innovation, and at the same time, carrying out research and development of new strains of bacteria with independent intellectual property rights. Focusing on the personalized nutritional needs of "C-end" consumers, with "precise nutrition" as the core, the Company has also been actively developing testing and evalsuation technologies relevant to nutrition and health, establishing and improving a new model of precision nutrition products and technical services of "testing - personalized intervention - re-testing", promoting the development of related core testing technologies and population databases, and making progress of varying degrees in nutrition and anti-aging related research.

Entering the second half of 2020, in the face of the continuous changes in the industry environment, characteristics and trends, the Company will stick to the strategy of “make changes quickly to adapt to the ever-changing times”, continue to deploy in the consumer health sector, and actively promote the digitalization of the entire chain, the fission of dealers, the operation of user assets, the product development of new functions and new formulation and other business innovations. On the same day, the Company announced that it would increase its capital by 80 million Yuan to obtain 80% of the equity of Guangzhou I-MYBEST Network Technology Co., Ltd., the sole distributor of the Company’s "Byhealth" brand in the e-commerce channel, making both parties a community of shared interests with the same goals. The Company will further extend to the downstream of the e-commerce channel to implement the integration of the entire chain from product development, production, marketing to the consumer end, promote the development of a consumer-centric entire-chain digital system, and boost the Company's digital development and improve its comprehensive competitiveness.

According to some brokerages, under the trend of diversified development of channels and functionalization of dietary nutrition, Byhealth, which has extensive accumulations in R&D, branding, and channels, is believed to have great market growth potential. Especially since this year, with consumers becoming increasingly health-conscious, the industry's per capita health spending is expected to continue to increase, and the market enjoys huge space for future expansion. The Company will further forge its competitive edges and seek further growth. It will never let encounters go wasted, but always let future be tasted.