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BY-HEALTH Recorded a Revenue of 1,495 Million Yuan and 7.46% YoY Growth in the Net Profit Attributable to the Parent in Q1


On the night of April 27, BY-HEALTH Co., Ltd. (SZSE: 300146, hereinafter referred to as “BY-HEALTH” or “the Company”) published its report on the first quarter 2020 results. The report shows that since the outbreak of COVID-19 and its spread around the world in 2020, the Company's dealers, suppliers and retailers, among others, are affected to varying extents, which somehow influences the Company's operation. From January to March 2020, the Company achieved operating revenue of 1,495 million yuan, a 4.84% decrease from a year earlier; and the net profit attributable to shareholders of the listed company of 535 million yuan, an increase of 7.46% from a year earlier.

According to data from National Bureau of Statistics, in the first quarter of 2020, GDP fell by 6.8% YoY at comparable prices, while total retail sales of consumer goods dropped by 19.0% YoY; the national per capita consumption expenditure decreased by 8.2% compared with the same period of last year, of which the per capita consumption expenditure of medical care fell by 10.2% YoY. The domestic consumer markets have been affected to varying degrees by the epidemic.

Since the first quarter, facing the severe external environment, the Company had positively made a response and adjustment, in the anticipation to maintain relatively stable operations. As the domestic consumer markets gradually recover in the second quarter, the Company will implement the established market strategy to comprehensively facilitate product lines based on the "four hero products two image products one star product" structure, so as to the activate consumer demand. Promotion efforts on master brand "BY-HEALTH" will be increased in the second quarter, in close integration with the "boosting immunity" trend, to achieve the growth and expansion of market for protein powder and vitamin products. BY-HEALTH, as the industrial leader, will then drive the rapid growth of the entire product category. Hero product "Keylid" for joint care launched a new round of promotion in April to boost the regional terminal sales. At the same time, Life-Space was also approved as the health food with dual health-care functions, namely "regulating intestinal flora" and "boosting immunity” at the beginning of the year, and launched in March. With the "hero product" strategy aiming to create another "Keylid", Life-Space will also gradually increase market investment in the second quarter to continuously enhance the brand effect. On the basis of three existing hero products, brand new liver care product "Jianganshi" is launched on a blue ocean market - liver care market, and promotes sales through pharmacy channels relying on hard-to-get approvals and compound formulas as its unique advantages.

Meanwhile, the Company also provides various forms of support to fight against the epidemic, such as contributions and material donations, in a bid to actively fulfill its corporate social responsibilities. Since the outbreak of COVID-19, the Company has donated a total of 10 million yuan in cash and 22 million yuan worth of nutritional materials, including vitamin C, protein powder, probiotics and others to back up the Leishenshan Hospital and the anti-epidemic frontline institutions.

At present, though China has COVID-19 epidemic generally under control, it still awaits recovery in consumer sentiment and demand. The Company will pay close attention to anything new and actively respond.