BY-HEALTH reported high growth, with an operating income growing by 46 % year on year in H1

 2018.07.30

At the night of July 30, BY-HEALTH Co., Ltd (Stock Code: 300146, hereinafter referred to as "the Company") published its H1 2018 Report. The report shows that, in the first half year, the Company realized operating income of ￥2,170 million, increasing by 46% from the same period of last year; net profit attributable to shareholders of listed companies was ￥705 million, increasing by 21% compared with the same period of last year in the reporting period.

This impressive performance indicates that after completing business integration and structural adjustment in 2017, the Company is developing at a steadier pace. In the first half of 2018, this momentum continued. According to its established 2018 Annual Business Plan, in the first half year, BY-HEALTH has furthered the implementation of the strategies of “developing Large Individual Product”, starting e-commerce branding 2.0 and etc, and thereby proceeded with a new growth cycle.

The Large Individual Product strategy drove high growth in H1

In 2017, the Company officially launched the Large Individual Product strategy, pooling and mobilizing the market advantageous resources to build the mode of Large Individual Product. This strategy has formed a new profitable ecological chain in a short time, opening up a new space for the continuous progress of all products and offline growth.

In 2017, the Large Individual Product strategy performed well. “KEYLID”, the first large individual product, took the lead, achieving a growth rate of over 160%, thus rapidly occupying a dominant position in joint health area. The first half of 2018 witnessed the continuous good performance of "KEYLID", achieving a growth rate of over 300% year on year. According to the Company, in the future, KEYLID will not only improve its customer base among people aged 50 and over through offline channels, but also expand the base among young people through online channels, so as to gain more market share. Meanwhile, the Company prioritized the promotion of the second great item " Jianshijia " in Liaoning, Sichuan, and other markets, and will further expand the proportion of new products and uncover the market incrementation through driving up the sales of all products with one individual product.

Keep implementing e-commerce branding 2.0 to follow the rejuvenation trend

In 2018, the Company started to implement the e-commerce branding 2.0. It expressed that this strategy will bear the responsibilities of brand promotion, brand rejuvenation, and online exclusive products promotion.

In the first half year, considering that young people prefer experience to function, the Company customized e-commerce supplied exclusive products for young customers like "Melon and olive pressed candy". This product, light, fashionable, and tasty, is evidently different from conventional dietary supplement products, indicating that the Company is closely following the rejuvenation and consumption upgrading trend.

As for the spokesperson of products, BY-HEALTH boldly changed the original brand positioning strategy. This May, BY-HEALTH chose internationally-renowned and stylish supermodel Miranda Kerr and the influential rising star Cai Xukun(August) who is quite influential among young people to endorse YEP series plain food. Through e-commerce branding 2.0, BY-HEALTH online channel reaches young people, gradually realizing the brand rejuvenation.

Promote M&A under the guidance of overall strategy and formulate the strategy of going global

In the first half year, the Company has continued to promote the mergers and acquisitions under the guidance of overall strategy to create a "United Nations" of nourishments. In January, 2018, the Company announced to buy 100% shares of Australia probiotics enterprise Life-Space Group Pty Ltd; in May, it bought the business assets of children nutrition supplement brand Penta-vite with 21 million Australian dollars from BAYER. This brand has 70 years of history. These two acquisitions formed an important part of BY-HEALTH’s development in global market segments. Some analyses indicate that, BY-HEALTH will have bright prospects as it has clear strategic thinking, maintains stable growth, and has gained a foothold in several segments.

It is worth mentioning that to further embody the strategy of "global nutrition", enrich the connotation of the brand, and strengthen the communication with consumers, in H1 the Company officially introduced a brand-new claim - "we gather nutrition from 23 countries, making a better you" and unveiled a new brand image. The brand positions itself as being more international, stylish, and younger.

In addition, in the first half of 2018, the Company continuously tried new fields and further expanded business spheres by launching "F6 supershot" energy drinks; simultaneously, the newly-built transparent factory and nutrition exploration center are a two-way communication channel between consumers and the enterprise for improving the brand competitiveness and services. At present, the business layout of the Company is clear and H1 performance shows a vigorous vitality, having ushered in a new growth cycle.