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By-health Publishes Its 2019 Semi-Annual Report and Announces a Revenue Increase by 36.88%

On the night of July 30, By-health Co., Ltd. (SZSE: 300146, hereinafter referred to as “By-health” or “the Company”) published its 2019 Semi-Annual Report. The report shows that, in the first half of 2019, By-health’s revenue amounted to 2,970 million yuan, up 36.88% year-on-year; and the net profit attributable to the shareholders of the listed company amounted to 867 million yuan, up 23.03% year-on-year.

With protein powder as an image product, the Company was continuously increasing the influence of its master brand

In the first half of 2019, the Company advertised protein powder as an image product in conveying the brand image, further strengthening the brand building and market expansion. The operating income from its master brand “By-health” went up by 14.44% year-on-year. The Company allocated resources for protein powder from a strategic point of view, established itself as a market leader, maintained growth of its master brand, and boosted the brand power of “By-health” to drive up the sales of all products.

The Company devoted efforts to three“ hero products” simultaneously and its operating income from “KEYLID” increased by 53.71%

In the first half of 2019, with new packages and products launched to attract larger consumer groups, the major competitive product “KEYLID” delivered good performance in the market, and its operating income increased by 53.71%; with respect to the second major competitive product “Jian Shi Jia” targeting the eye health supplement market, included more regions in its pilot project, expanded product categories through continuous publicity and communication contributed while focusing on the middle-aged, the aged, and six major provinces; with respect to the third major competitive product “Life-Space”, LSG’s probiotic products in China, the Company was promoting the integration of LSG’s business and moving faster to promote the expansion of “Life-Space” in drug store, baby stores and supermarkets, .

The Company further implemented e-commerce brand strategy 3.0 provide new points of growth

In 2019, the Company launched brands targeting the youth and specific market segments, such as YEP and IWOW, established an effective response mechanism for dealing with users and addressing the market, and set up dedicated research & development teams, to complement the business model of “By-health” in promoting large individual products and popular products for growth in new business.

Since the end of 2018, domestic health care industry and drug retail trade have been subject to continued reform and regulation; this would be favorable to the domestic market in the long run, but would create certain impact and challenge in the short run. In addition, the Company’s sales over online channels grew at a slower rate due to the change in some policies concerning e-commerce platforms. In the second half of 2019, the Company will further publicize the concept of dietary supplements, help consumers to gain scientific knowledge of dietary supplements and its use, promote the implementation of the strategy of e-commerce brand strategy3.0, and conduct more targeted operations over online channels.

Besides, in the first half of 2019, the Company accelerated the establishment of such channels as supermarkets, launched and marketed nutritional jelly drops, established unique models for increasing sales, and laid a solid foundation for the future development. Further, the Company opened up more channels in the maternal-infant supply market, and allocate more professionals to these channels. The products of “Nature’s Bay” and “Life-Space” are being distributed to maternal-infant supply stores, and the sales are increasing. With respect to brand power and service power enhancement, the By-health Nutrition Exploratorium invested and constructed by the Company was completed in the first half of 2019, and formally unveiled on July 23. This was a key step for the Company to tap the market of the healthcare industry and establish a new model for communication with consumers.

In the second half of 2019, By-health will continue to implement the moderately radical business strategy, strengthen brand building, deepen “hero product” strategy and e-commerce brand strategy 3.0, and promote differentiation and diversification of channels including supermarkets and baby stores, and proactively tap into more market segments.