BY-HEALTH published its Annual Report 2018, showing its net profits attributable to the parent company achieved the year-on-year growth of 30.79%

                           2019-02-28

At the night of February 27, BY-HEALTH Co., Ltd (Stock Code: 300146, hereinafter referred to as “BY-HEALTH” or “the Company”) published its Annual Report 2018. The report showed that, in 2018, the Company realized operating income of ￥4.351 billion, increasing by 39.86% from the same period of last year; net profit attributable to shareholders of listed companies of ￥1.002 billion, increasing by 30.79% compared with the same period of last year. Among them, the non-return parent net profit reached ￥ 9.14 billion, an increase of 41.89% compared with the same period of last year.

In 2018, BY-HEALTH continuously improved its value relying on the active operation strategy and the layout of positive endogenous development and extension. According to its established Annual Business Plan Guide, BY-HEALTH further implemented the strategies of “developing Large Individual Product”, “starting e-commerce branding 2.0”, etc., achieved remarkable results, won new growth opportunity, and thereby started a new growth period.

Taking initiative in 2018 opened new performance growth pattern

In 2018, the Large Individual Product “KEYLID” received good benefits, showed strong growth trend, realized 128.80% growth, and occupied a dominant position in the joint care sub-division field. The Large Individual Product “Jianshijia”, locating in the eye protection market, was launched in some pilot provinces and cities. In 2018, the pulling effect that the Large Individual Product leads all categories of products to grow continuously started to become highlighted, and the brand awareness and permeability was continuously improved, thus creating a new value ecological chain.

BY-HEALTH’s e-commerce branding 2.0 strategy has achieved initial success. By the independent e-commerce brand system, the Company started the construction of e-commerce digitized system centered on users. BY-HEALTH established efficient e-commerce research, development and promotion system, and launched the brand spreading & communication strategy separating on-line and off-line. In 2018, BY-HEALTH has achieved significant growth in e-commerce business, preliminarily established a young brand image of YEP products, and invested more in the market of younger generations.

At the same time, the Company continued to promote the merger and acquisition guided by the overall strategy and sought the M&A object with synergistic effect. In 2018, the Company completed the acquisition of Life-Space Group Pty Ltd. (Australian probiotics enterprise) and Penta-vite (Children nutritious supplementary brand). The Company, by effectively supplementing its product categories through acquisition, gradually entered the children’s dietary supplements and probiotic market, thus creating a new business growth space.

Focusing on product quality, research & development consolidated the endogenous growth foundation

The Company sufficiently integrated authoritative nutrition & health research institutes and other resources both at home and abroad, focused on the innovative research & development of “new function, new material and new technology”, and formed the comprehensive and scientific Vitamin & Dietary Supplements system. In 2018, the company continued the research of unique formula products and research & development of functional products, integrated internal and external resources to focus on innovative research & development, and created unique and functional innovative products. 

Meanwhile, the annual report indicated that the Company Chairman put forward and implemented the quality control idea that “integrity is more important than wisdom” and took it as the ballast stone for operation and development of the Company. The idea included multiple quality control policies, such as “national standards and regulations were just minimum requirements and baselines, the company standards should be comprehensively stricter than national standards”, “quality was superior than everything”, “implement the concept and brand DNA that we produce the global highest quality of nourishments not for customers but for families and friends”.  

Launching multiple policies in 2019 speeds up comprehensively

In 2019, BY-HEALTH will adopt a more active operation strategy. In addition to strengthening original “Large Individual Product” and “e-commerce branding 3.0”, it will also launch the “master brand improvement strategy using protein powder as the image product”.

In 2019, the Company will further strengthen the brand construction and market cultivation, and develop its image products and brand’s contact points using protein powder as the main brand. The Company will attract new young consumers and undertake the role of the market leader via resource investment, so as to keep and stabilize the growth trend of the main brand, further to speed up the establishment of new brand image of “we gather nutrition from 23 countries ,making for a better you”, improve “BY-HEALTH” brand force, and realize the increase of whole categories. 

The Company will further enrich the strategy of Large Individual Product. It will strive to realize more sales of “KEYLID” products, and cover more consumers; steadily expand the pilot area of “Jianshijia” products, taking the middle-aged and elderly people as the primary target population; use probiotics brand Life-Space’s offline product in China as the third Large Individual product, develop offline sale channels like drug stores and infant & mon stores, and give play to integration and synergistic effect between Life-Space and BY-HEALTH. In addition, the Company will launch products of new category and dosage, further enrich and improve categories and branch quantity for supermarket sales, so as to accelerate the construction of supermarket channel. The Company will also deepen the construction of baby & mom channels, increase the investment of professional resources, maintain the rapid growth of “Nature’s Bay”, and focus on cultivating new business of Penta-vite and Life-Space in the baby & mom channel. 

For the e-commerce branding, the Company will step up to start the construction of digitized e-commerce centered on users, and transit from product operation to user operation. The Company will develop the relatively independent e-commerce brand and product system, locating in young consumers and promoting the brand to be younger and more fashionable. 

In the meantime, the Company will further consolidate its research & development and maintain its technology leadership position in the industry. In 2019, the Company will launch the establishment of the “BY-HEALTH Nutrition Anti-Aging Research Center”, actively plan to establish the “Overseas Research & Development Center”; continuously enrich its product lines, and promote the performance growth in virtue of scientific strength. 

In addition, the Company will also further improve its brand power and service power by establishing the “intelligent factory” and nutrition exploration museum. Currently, BY-HEALTH has entered a new growth period, will continuously enrich and perfect its product lines and brand matrixes, adopt more proactive operation strategy, and achieve prospective performance.