BY-HEALTH realized operating income of 1.571 billion yuan in the first quarter

2019-04-26

At the night of April 25, BY-HEALTH Co., Ltd. (Stock Code: 300146, hereinafter referred to as “BY-HEALTH” or “the Company”) published its Q1 2019 Report. The report shows that from January to March 2019, the Company realized an operating income of 1.571 billion yuan, up by 47.17% year-on-year; and the net profit belonging to shareholders of the Company amounted to 497 million yuan, increasing by 33.69% year-on-year.

According to its established Annual Business Plan, the Company launched multiple policies to implement the quality control concepts that “integrity is more important than intelligence” proposed by the Company Chairman in 2018, further consolidating its research & development and improving lean management. Meanwhile, the Company launched the master brand improvement strategy using protein powder as the image product, further enriching and consolidating the strategy for hero product. In addition, it also launched the e-commerce brand strategy 3.0, and accelerated the construction of supermarket channel and mother & baby channel, laying the foundation for the Company's performance growth.

Since the first quarter, the Company has launched the master brand improvement strategy using protein powder as the image product, strengthened the health education of protein powder and attracted new young consumers, so as to continuously strengthen the growth trend of the master brand. It has launched the e-commerce brand strategy 3.0 for the purpose of accelerating the construction of e-commerce digitized system centered on user experience. Furthermore, the Company has enriched and improved categories and branch quantity for supermarket sales, so as to accelerate the construction of supermarket channel. Simultaneously, it has increased the investment of professional resources and deepened the construction of the mother & baby channel. With the effective implementation of the above strategies, the master brand “BY-HEALTH” grew by 29.84% year on year.

The Company further enriched and implemented the strategy for hero product. With deeper promotion, “KEYLID” received good benefits, realizing a year-on-year growth of 69.48%. The Company completed the acquisition of Life-Space, a leading Australian probiotics brand last year, showing good growth momentum in both the Australian local market and China's cross-border platforms. In the meantime, Life-Space has been launched as the Company's third hero product. In April, it officially entered the Chinese offline channel. The Company has comprehensively distributed the probiotics market segments and expanded product lines to give play to integrated and synergistic effect between Life-Space and BY-HEALTH.

Meanwhile, the Company continued to enhance the high-quality and differentiated "product power", and focused on promoting the construction of "service power". It has started the construction of “By-Health Nutrition and Anti-aging Research Center” and is actively planning to establish the “Overseas Research & Development Center”. In terms of product innovation, the Company is researching and developing products of new category and dosage, continuously enriching its product lines and promoting the performance growth in virtue of scientific strength. In addition, the Company will speed up the establishment of new brand image of “Gathering Nutrition from 23 Countries for A Better You” by implementing the “eight concepts for quality control”, “global raw materials” strategy, “Smart Factory” and Nutrition Exploratorium establishment, further improving its brand power and service power .

Some analysts point out that BY-HEALTH will adopt more proactive operation strategy in 2019. It is expected to maintain good growth momentum through the strategy for hero Product, the e-commerce brand strategy 3.0 , the supermarket channel and mother & baby channel layout, so as to achieve prospective performance.