The leader of dietary nutritional supplements (VDS) By-Health Co.Ltd(300146) ( By-Health Co.Ltd(300146) . SZ) is about to transform into a “strong scientific and technological enterprise”.
On March 4, By-Health Co.Ltd(300146) disclosed this strategy for the first time in its 2021 performance report. “We hope to preliminarily complete the transformation of strong scientific and technological enterprises in another eight years,” By-Health Co.Ltd(300146) chairman Liang Yunchao also said in a letter to shareholders in the annual report that the company will launch a high-tech and heavy-function product independently developed to the market every two or three years in the future annual report also mentioned that the company’s operating revenue growth target in 2022 is 20%
The annual report shows that during the reporting period, 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 of last year; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 1.54 billion yuan, a year-on-year increase of 34.59%. The company plans to pay a cash dividend of 7.00 yuan (including tax) for every 10 shares.
Since the listing, By-Health Co.Ltd(300146) operating revenue has maintained continuous growth, and the net profit attributable to the parent company has also walked out of the trough two years ago, reaching a record high. Liang Yunchao admitted that the By-Health Co.Ltd(300146) sales revenue in 2021 was lower than the budget at the beginning of the year, while the net profit attributable to the parent company was slightly higher than the budget at the beginning of the year.
The fourth quarter has always been the low performance of By-Health Co.Ltd(300146) and often suffered losses due to asset impairment and other factors. Although the net profit attributable to the parent company of nearly 100 million yuan in a single quarter in the fourth quarter of last year was the lowest in the whole year, it was the best year-on-year in recent years. In particular, the net cash flow from operating activities in the quarter was 859 million yuan, the highest in a single quarter since listing.
Specifically, the main brand ” By-Health Co.Ltd(300146) ” achieved a revenue of 4.445 billion yuan last year, a year-on-year increase of 24.36%; The revenue of “life space” Chinese products was 184 million yuan, a year-on-year increase of 36.33%.
Offline channels account for more than 60% of revenue, but online channels grow faster than offline channels. Online increased by 45.88% year-on-year, while offline increased by 8.58% year-on-year.
at the same time, the short board of low gross profit margin of online channel sales is being supplemented By-Health Co.Ltd(300146) last year, the gross profit margin of online channels increased by 8.20 percentage points to 65.24%, which is not far from 66.77% offline.
Overseas assets are still a persistent disease around By-Health Co.Ltd(300146) .
The proportion of overseas assets is relatively high, and it is still in a state of loss in 2021. The announcement shows that the scale of overseas assets is 2.153 billion yuan, accounting for 20.44% of the company’s net assets.
Previously, By-Health Co.Ltd(300146) 2018 obtained control of LSG through cross-border acquisition, and the LSG operator is located in Australia. There are still uncertainties about whether the integration can be implemented smoothly and whether the integration effect can reach the expectation. Previously, the company had suffered huge losses due to the impairment of goodwill. The book value of goodwill in the company’s consolidated statements was still 1.12 billion yuan, accounting for 8.64% of the total assets in the consolidated statements. It was still facing the risk of goodwill impairment.
In the annual report, By-Health Co.Ltd(300146) believes that there is no significant impairment risk if the overseas subsidiaries can turn around their losses in the future, the performance hidden danger of By-Health Co.Ltd(300146) will be eliminated
In VDS industry, By-Health Co.Ltd(300146) market share ranks first in China. 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) has a market share of 10.3%, ranking first in terms of market share. 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. It can be seen that there is still a large market space for dietary nutritional supplements in China.
By-Health Co.Ltd(300146) puts forward the transformation strategy of “strong scientific and technological enterprise” on how to hold the first place when seizing market share.
Liang Yunchao mentioned three specific practices
First, continue to build By-Health Co.Ltd(300146) “hard technology” product strength and scientific and technological competitiveness. Including proprietary raw materials and formula research and development; R & D and registration of new function and heavy function products; Release of forward-looking basic research results such as anti-aging and precision nutrition.
Secondly, strengthen the company’s product scientific and technological strength of “high-precision” heavy function health food.
Thirdly, Shanghai Research Center and AI research center of By-Health Co.Ltd(300146) nutrition and Health Research Institute were established in 2022.
Related actions have been expanded. With the deepening of the aging of the population, By-Health Co.Ltd(300146) believes that this is a breakthrough for growth, which brings huge market space to the VDS industry, and starts to layout the “silver economy”.
In December 2021, By-Health Co.Ltd(300146) worked with teams from Shanghai Institute of nutrition and health, Chinese Academy of Sciences, Mayo Clinic and other institutions to extract anti-aging substance PCC1 from specific grape seeds By-Health Co.Ltd(300146) said that this substance can eliminate aging cells. The scientific journal Nature metabolism published this anti-aging scientific research achievement.
“If we focus on the huge market space for the golden n-year ‘silver economy’ that the accelerated aging will bring to the VDS industry, as well as the leading advantages of By-Health Co.Ltd(300146) , we may find breakthroughs and opportunities one by one.” Liang Yunchao said.
These may also be the foundation of By-Health Co.Ltd(300146) this year’s 20% revenue target.
