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BY-HEALTH reported steady growth in Q3, 

with an operating income growing by 44.94% year-on-year

2018-10-26

On October 26, BY-HEALTH published its Q3 2018 Report. The report shows that from July to September in 2018, BY-HEALTH realized an operating income of ¥1252 million, up by 44.94% year-on-year; and the net profit attributable to the shareholders of listed companies amounted to ¥353 million, a year-on-year increase of 59.95%. The report shows that, in the first three quarters, the Company realized operating income of ¥3421 million, increasing by 45.58% year-on-year; net profit attributable to shareholders of listed companies was ¥1058 million, a year-on-year increase of 31.72%.

According to its established Annual Business Plan Guide, 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 Company will further expand the proportion of new products and uncover the market incrementation through driving up the sales of all categories with one individual product. Targeting younger customers who value experience over functions, the Company launched customized products that are exclusive for e-commerce platforms to keep up with the younger trend and consumption upgrading. In the meantime, the Company continued to promote the acquisitions and mergers under the guidance of its established overall strategy and began to build presence in global market segments.

In the first three quarters of 2018, “KEYLID” still maintained good performance and stable growth, promoting the development of all categories, and exploring new opportunities for offline sales growth. BY-HEALTH’s e-commerce branding 2.0 strategy has achieved initial success. The company enhanced communication with young consumers by developing an independent e-commerce brand system, pursuing a segmentation strategy of brand communication for online and offline channels, and promoting e-commerce digitalization, in order to keep up with the younger trend. As for the spokesperson of products, BY-HEALTH boldly changed the original brand positioning strategy. In July, after engaging international super model Miranda Kerr as the spokesperson of YEP series plain food, the Company has also chosen the influential rising star Cai Xukun, who is younger and has stronger fashionable appealing, to endorse the product. With the implementation of e-commerce branding 2.0 strategy, BY-HEALTH has achieved significant growth in e-commerce business and preliminarily established a young brand image of YEP products. It will continue to focus on younger generations.

At the same time, the Company continued to promote the mergers and acquisitions as per guidance of overall development strategy. It has completed the acquisition in cash and gained a controlling stake of Australian probiotics company Life-Space Group Pty Ltd. The probiotic product market has become one of the fastest growing segments of the health food market in China. The acquisition marked an important layout of BY-HEALTH in global market segments. Previously, BY-HEALTH announced acquisition of Penta-vite, a child nutrition supplement brand with 70 years of history from Bayer with 21 million Australian dollars. The Company, with effectively supplementing its product categories through outreach acquisition, is expected to successfully enter the children's dietary supplements and probiotic market, thus creating a new growth engine of its business.

According to analyses, BY-HEALTH has accumulated strong foundations in branding, quality and channels. Against the background of international competition, it has a bright prospect to maintain a leading position with its capital strength and market advantages. With clear strategic thinking, prudent and proactive planning of both internal and external development, it will further increase company value.