On March 4, By-Health Co.Ltd(300146) (Stock Code: By-Health Co.Ltd(300146) ) released the annual performance report for 2021. In 2021, By-Health Co.Ltd(300146) achieved an operating revenue of 7.431 billion yuan, an increase of 21.93% over the same period of last year; The net profit attributable to shareholders of listed companies was 1.754 billion yuan, an increase of 15.07% over the same period last year. Liang Yunchao, chairman of the board of directors, issued a letter to the shareholders simultaneously, “building a strong scientific and technological enterprise in eight years”, hoping to preliminarily complete the transformation of a strong scientific and technological enterprise in eight years; We hope to launch an original high-tech and heavy function product developed by us every two or three years in the future, which can truly bring incremental value to the health of consumers; Firmly implement the scientific nutrition strategy and strive to become one of the VDS enterprises with the strongest scientific and technological power and innovation in the world.
The full text of the letter to shareholders is as follows.
“building a strong scientific and technological enterprise in eight years”
– By-Health Co.Ltd(300146) chairman’s letter to shareholders
Dear By-Health Co.Ltd(300146) shareholders:
In 2021 By-Health Co.Ltd(300146) achieved a sales revenue of 7.431 billion yuan, with a year-on-year increase of 21.93%. Excluding Maiyou company, the comparable growth rate is 15.38%, lower than the budget at the beginning of the year; The net profit attributable to the parent company was 1.754 billion yuan, a year-on-year increase of 15.07%, slightly higher than the budget at the beginning of the year.
Euromonitor data show that in 2021, the total retail scale of China’s vitamin and dietary supplement (VDS) industry was 189.2 billion, with a growth rate of about 6.6% By-Health Co.Ltd(300146) shares were 10.3%, ranking first. The second and third market shares were 6.0% and 5.0% respectively. Compared with the previous year, By-Health Co.Ltd(300146) has expanded its leading edge.
In 2021, the per capita consumption of dietary and nutritional supplements in China was US $20, an increase of 6.3%, slightly higher than the global average, about 20% of that in the United States. The change of channel structure in the overall market of the industry is slowing down. The market share of e-commerce and drugstores in 2021 is relatively stable compared with that of the previous year, while the market share of direct sales channels continues to decline.
The scientific research report of China’s dietary guidelines (2021) issued by the China Nutrition Association points out that China’s residents’ nutrition status and physical fitness have improved significantly, but their physical activity level has been significantly reduced. Overweight, obesity and chronic diseases related to diet are becoming more serious. Chronic diseases such as diabetes, high blood pressure, cardiovascular and cerebrovascular diseases are all on the rise. Dietary imbalance has become the main risk factor of chronic diseases. High oil, high salt and high sugar diets are common. In addition, the exclusive breastfeeding rate of infants within 6 months is still far from the target. Although the anemia rate of pregnant women has improved significantly, it is still as high as 13.6%. Some elderly people have insufficient energy or protein intake, and the proportion of insufficient intake of vitamin B1, vitamin B2, folic acid and calcium is higher than 80%.
The policy and regulation system of China’s dietary and nutritional supplements industry has been continuously improved, but at present, the regulatory standards of cross-border and domestic, health food and ordinary food are not unified. The rapid rise of new formats such as live e-commerce also puts forward higher requirements for industry self-discipline and supervision. At any time, we should tighten the awareness of red line and bottom line and jointly take care of the young Chinese dietary and nutritional supplement industry. Always remember the basic positioning of dietary nutritional supplements: raw materials are vitamins, minerals, animal and plant extracts, etc; It can balance nutrition intake and regulate the function of human body for specific people; It can not replace normal diet and drugs to treat diseases. Without health, there can be no future.
Honesty is more important than intelligence!
From the beginning of 2021, I began to think about the problems of “quality” and “quantity” in China’s consumer goods market in the past two years. Together with the team, I visited a number of consumer goods enterprises, including a considerable number of cutting-edge consumer brands. Each enterprise gave me different inspiration and harvest.
From one thousand people to one thousand people to one thousand people, consumer goods brands are undergoing changes from variety brands to category brands to enterprise brands, that is, from commodity brands to enterprise personal brands. In a sense, brand is “character”. The character of the management team should match the brand of consumer goods. The consumer goods industry is also undergoing changes from the era of brand sovereignty to the era of channel sovereignty to the era of consumer sovereignty.
From time to time, various channels see and hear the digital Carnival of “quantity” in all kinds of face, while the “quality” inside is often selectively ignored by all parties and even themselves. What we see may be the truth, but not necessarily the truth. You can see different facts from different angles. You should see with your eyes and listen with your ears, and think with your heart and brain.
The dividend period of China’s consumer Internet has passed. “Low price” is one of the core keywords and is regarded by many people as the “most successful” keyword. The mainstream business logic is to quickly realize the accumulation of users driven by capital, and look forward to the successful “harvest” and becoming a unicorn in the later stage. Behind every “lying winner” may be the huge tuition fees paid by countless “lying flat” and “lying down”. The flowers are brilliant because there is enough fertilizer. Each participant has to think about a question: why can we become the only flowers left, not the pile of fertilizer?
The brand inside the traffic bottleneck, from “traffic to the top” to “traffic to escape the top”, is the traffic “stimulant” or “poison”? It is true that we can make the flow dividend bigger, but only by settling down can the brand / user compound interest be stronger. Only those who can cross wave after wave of dividend cycles and even the test of economic cycles can be regarded as excellent consumer goods enterprises. Their core competitiveness must come from internal forces, not external forces.
On November 4, 2021, freestyle skiing champion Gu ailing became the ambassador of By-Health Co.Ltd(300146) yep scientific nutrition brand.
On December 28, 2021, By-Health Co.Ltd(300146) became the supplier of sports food and nutrition for Team China, providing sports food, nutrition and professional nutrition preparation plan for athletes of more than 70 teams of the national team.
On January 1, 2022, By-Health Co.Ltd(300146) jianliduo became the official supplier of bone health and nutrition products for the 19th Asian Games in Hangzhou in 2022.
walks out of the “upward curve” of By-Health Co.Ltd(300146) with “upward thinking”, which is the direction we have always chosen from global raw materials and transparent factories to today’s scientific nutrition strategy. The core of “upward thinking” depends on innovation and differentiation. Product quality and user experience are the basic guarantee for standard configuration and long-term development. “Upward thinking” is to force enough innovation and differentiation to challenge the upward value creation competition, so that users can obtain higher product quality and better experience. Leading the upward competition curve of By-Health Co.Ltd(300146) with “upward thinking” to support the sustainable and healthy development of the enterprise.
Infinite scenery at the peak!
In December 2021, By-Health Co.Ltd(300146) cooperated with the expert teams of Shanghai Institute of nutrition and health, Chinese Academy of Sciences, Mayo Clinic and other global institutions to extract anti-aging substance PCC1 from specific grape seeds, which can accurately, efficiently and safely remove aging cells. The global authoritative scientific magazine Nature metabolism published this breakthrough scientific research achievement on anti-aging.
On the new year’s day of 2022, I internally issued a new year’s vision of By-Health Co.Ltd(300146) transforming into a strong technology enterprise.
In 2014, we began to implement the strategic transformation of functional independent innovation R & D, and achieved phased scientific research achievements in today’s innovative new functional products and PCC1 basic research in eight years. It is hoped that the transformation to a strong science and technology enterprise will be preliminarily completed in another eight years.
what is the strongest path to realize the transformation of By-Health Co.Ltd(300146) to a strong science and technology enterprise
In the future, we will launch an original high-tech and heavy function product developed by us to the market every two or three years, which can truly bring incremental value to the health of consumers; In the future, it will continue to release forward-looking research results such as anti-aging and precision nutrition similar to PCC1 around the world, bringing incremental value to the VDS industry.
to transform into a strong technology enterprise, By-Health Co.Ltd(300146) what to do
I. implement the strategy of “scientific nutrition” and continue to build a different By-Health Co.Ltd(300146) “hard technology” product power and scientific and technological competitiveness, enabling the scientific and technological content of VDS industry and bringing incremental value to VDS industry. The implementation of “scientific nutrition” strategy will highly focus on building the core competitiveness of science and technology. The specific implementation is reflected in three aspects: 1 Research and development of proprietary raw materials and formulas; 2. R & D and registration of new function and heavy function products; 3. Release of forward-looking basic research results such as anti-aging and precision nutrition.
II. Continuously strengthen and consolidate the product scientific and technological power of “high-precision and top-notch” functional health food with outstanding competitive advantages of By-Health Co.Ltd(300146) and enlarge the unique advantages of By-Health Co.Ltd(300146) industry.
III. Shanghai Research Center and AI research center of By-Health Co.Ltd(300146) nutrition and Health Research Institute were established in 2022.
2022 February, the company formulated the 2030 core objectives and action outline for the transformation of strong science and technology enterprises
what we do now determines what By-Health Co.Ltd(300146) can become in the future. Now, By-Health Co.Ltd(300146) will learn from the benchmarking of global benchmark pharmaceutical enterprises and strive to become one of the VDS enterprises
At the beginning of these years, which circle of friends did not predict that “this year will be a particularly difficult year”? On New Year’s day this year, the circle of friends is full of some voices of “squatting”, “lying down” and “cat low”. In fact, there is no particularly difficult year. Every year is as difficult as every year, and every year is the same key. The difference is that the “difficult” and “key” are different every year, that’s all.
Some emergency behaviors during the epidemic become normal behaviors. The difficulty of normalization should not be regarded as the difficulty, but as the norm, looking for breakthrough opportunities in the existing norm. If we focus on the huge market space of “silver economy” golden n years that accelerated aging will bring to VDS industry, as well as the leading advantages of By-Health Co.Ltd(300146) , we may find breakthroughs and opportunities one by one. “Danger” and “opportunity” are placed in front of you and all competitors at the same time. It depends on how you choose!
In the era of change, we need to ask questions and solve problems. The third kind of people who are obsessed with “who is right and who is wrong” is neither scarce nor rare.
In the past 2021, we have experienced from the thinking of “quality” and “quantity” to the choice of “quality” and “quantity” we position 2022 as By-Health Co.Ltd(300146) operation quality year
Business is an endless benefit. First, consumers benefit, and then all participants in the value chain such as brands, channels, supply chains and communities benefit. A business that can continuously create benefits for everyone is a long-term business. Return to the essence of business.
Business is also an endless creativity. You can never find Newland Digital Technology Co.Ltd(000997) . The current By-Health Co.Ltd(300146) , the transformation and upgrading of offline sales mode and online traditional e-commerce are driven by the gene and courage of innovation and change. With the “incremental benefits” brought to all partners in the industry and value chain as the core, it breaks through the encirclement with “thorns” and blazes a trail of blood.
More and more industries and people will be forced to make a choice between “quality” and “quantity” in 2022. The emperor’s new clothes will eventually run naked, and the ostrich’s head will eventually be pulled out of the sand. If you can take the initiative to win a certain time difference, you will have more “opportunities” than others in the “crisis”, and you may block a greater crisis before a greater opportunity comes.
2022 needs more “quality” and “quantity”, healthier “quantity” and more sustainable “quantity”. Without the “1” of “health” in front, more “0” in the back is meaningless. If you can’t create sustained incremental value for the health of consumers and stakeholders in the ecosystem, By-Health Co.Ltd(300146) will have no value!
It is more difficult to defeat yourself than to defeat your opponent. The more applause, the greater the risk, the more bloody the scolding, and the more opportunities to learn from the past. Bear the pain and change for a healthy future.
For By-Health Co.Ltd(300146) and enterprises in many industries, 2022 may be a good year to improve “quality”.
“Aim at the moon. Even if you fail, you can at least fall on the clouds.”
2022, peace and health, peace in the world.
By-Health Co.Ltd(300146) Chairman
Liang Yunchao
\u3000\u30 Shanghai Kehua Bio-Engineering Co.Ltd(002022) 03.04
