Securities code: By-Health Co.Ltd(300146) securities abbreviation: By-Health Co.Ltd(300146)
By-Health Co.Ltd(300146)
Record of investor relations activities
No.: 2022003
□ specific object research □ analyst meeting
Investor relations activities □ media interviews □ performance briefing
Category □ press conference □ roadshow activity
□ site visit
□ others (telephone conference for investors of the company’s first quarterly report in 2022)
Harvest Fund (Han Han), Tianhong Fund (MA Xuewei), Huabao Fund (Huang Chaojie), Guorong Fund (Peng Shuangyu), guolian’an Fund (Lin Lu), Shanghai Xingzhi Venture Capital Co., Ltd. (Gu Hanbei), pinpoint (Zhu Haijie), point72 (Yu Tong) and Pureheart capital (BAI)
For example, destination partners (Shanghai) Limited (Zhang Yilei), Huaxia Life Insurance Co., Ltd. (Zhao Zihao), Taikang Asset Management Co., Ltd. (Lu Rixin), Guangfa Xinde (Zheng Sichao, Hao Yingchao), Zhongping capital (Zhang Xiaobei, Huang Zhenghong), JUNHE capital (Liu Jian, sarula), Jinxiu Zhonghe capital (Jiang Xinyi) Zhuhai China Resources Gejin Investment Management Co., Ltd. (Liu Zeyu), Qilu Zhongtai Private Equity Fund Management Co., Ltd. (song Yanzheng), Yida Rongjing capital participant name and our service Co., Ltd. (Wang Xiao), Danshui spring (Beijing) Investment Management Co., Ltd. (Chen Ruijie, staff name Lin Shenglan), Xingtai Investment Management Co., Ltd. (Chen Tingting), Lanxin Asia Investment Group (Chen Yi) Shanghai kuanyuan Asset Management Co., Ltd. (Wu Xiangxian), Shanghai model Investment Management Co., Ltd. (Zhao Mengyuan), Shanghai Baixi Private Equity Fund Management Co., Ltd. (Li Yue, Wang Linnan, Luo)
Shanghai Hengfu Investment Management Co., Ltd. (Chen Lili), Tibet Longyuan Investment Co., Ltd. (Liu Bin), Yin Feng and other investors China International Capital Corporation Limited(601995) (Wang Wendan, Chen Wenbo, Wu Hanyong), Huachuang securities (Cheng hang, Yan Xiaosi), Gaohua securities (Dai ye), Citic Securities Company Limited(600030) (Xue Yuan, Tang Xue)
Seal), Guosen Securities Co.Ltd(002736) (Chen Qingqing, Liao Wangzhou), Everbright Securities Company Limited(601788) (Wang Hangyu), deppon securities (Chen Yi) and other securities analysts
Note: the ranking is in no order
Time: 15:30-16:30 PM, April 29, 2022
Location teleconference
Name of receptionist of listed company: CEO Lin Zhicheng, board secretary Tang Jinyin, chief financial officer Wu Zhuoyi
The company disclosed the report for the first quarter of 2022 on April 29. In order to make the majority of investors have a more comprehensive and in-depth understanding of the company’s operation in the first quarter of 2022, the company conducted online communication with investors in the form of teleconference. The main communication contents are as follows:
Q: Reasons for the increase of gross profit margin in the first quarter of 2022
A: in the first quarter of 2022, the company’s gross profit margin increased by 2.72 percentage points year-on-year, mainly due to the increase in the proportion of direct sales revenue from online channels and the change of product structure. In addition, the company’s offline sales reform and strengthening gift management have a positive contribution to the gross profit margin.
Throughout the year, it is difficult to maintain the gross profit margin in the first quarter, and the rise of raw materials has a certain pressure on the cost side.
Q: Reasons for the increase in the closing balance of accounts receivable in the first quarter of 2022
A: in the first quarter of 2022, the ending balance of accounts receivable of the company increased by 81.57% compared with the end of last year, which is mainly due to the fact that the company will grant credit lines to some customers at the beginning of the year and conduct centralized collection at the end of the year in accordance with the Convention; The balance increased by 19.14% over the same period of last year, mainly related to the purchase rhythm of dealers.
Investor relations activity Q: reasons for the increase of sales expenses in the first quarter of 2022
A: the sales expenses in the first quarter of 2022 increased by 46.30% year-on-year, mainly due to the increase of platform expenses, marketing expenses and advertising expenses. Among them, the increase in platform expenses is mainly due to the increase in the proportion of the company’s online direct sales revenue; The business of Tiktok, Kwai and other platforms grew, and their costs were high. The increase of brand promotion fee is mainly due to the brand output and promotion around Gu ailing during the Winter Olympic Games, jianliduo advertising, etc. In addition, the company signed Gu ailing as yep · scientific nutrition ambassador and as a supplier of sports food and nutrition for Team China / China national team. The relevant expenses are amortized monthly according to the contract period, which will be sustainable.
The company’s sales expense ratio in the first quarter of 2021 was 18.14%, with a low base. The sales expense ratio in 2021 reached 33.35%. In 2022, the company will continue to make efforts in channels and new products, and the sales expense rate will remain at a high level.
Q: Reasons for the year-on-year decline of the company’s domestic online channels in the first quarter of 2022
A: the performance of the company’s domestic online channels in the first quarter of 2022 was lower than expected, mainly due to: (1) the high base in the same period of last year; (2) Epidemic prevention and control put great pressure on the company’s business end, and offline stores
And online logistics are greatly affected; (3) The competition pattern and traffic ecology of online platforms have changed, and the decline of the company’s b2b distribution business has dragged down the overall online performance.
Q: Reasons for the year-on-year decline of jianliduo brand revenue in the first quarter of 2022
A: the company’s “jianliduo” brand has maintained positive growth in online channels, and the proportion of offline channel revenue is relatively high, which is greatly affected by the epidemic; The category is relatively single, and the reserved new products are subject to the approval of health food, which has not been obtained; The market competition of ammonia sugar is intensified, and the superposition of the above factors leads to the performance of “jianliduo” brand lower than expected.
In the first half of this year, the company will launch new products of jianliduo. Its product formula and specifications are different from “jianliduo polysaccharide chondroitin calcium tablets”, and the recommended retail price of the products will be relatively low. Q: Whether LSG growth mainly contributes to cross-border e-commerce channels and how about local business in Australia
A: in the first quarter of 2022, LSG’s cross-border e-commerce channels continued to maintain rapid growth, while Australia’s local business revenue increased by more than 50%. LSG’s local business base in Australia was low in the first quarter of 2021, and there will be great growth pressure in the second half of the year.
This year, the company will increase the omni-channel expansion of “life space” brand, and there will be a large tilt in resources. Both cross-border e-commerce channels and China’s offline market hope to maintain rapid growth. Q: Life space China product distribution stores
A: “life space” brand is the key brand of the company’s omni-channel layout in the global market. The domestic offline channels have set annual distribution targets for it, which will promote business growth by improving terminal coverage and giving priority to matching special resources. Q: In addition to the brands disclosed by the company, the revenue performance of other brands
A: the revenue of other brands has not reached a certain level. Among them, “jianshijia” and “byhealth” brands performed well in the first quarter, achieving revenue growth of 60% + and 300% + respectively. At present, they are still in the cultivation period. Whether they can maintain high-speed growth still needs to be prolonged. Q: Will byhealth sales divert some consumers of By-Health Co.Ltd(300146) brand
A: “byhealth” locates the overseas upgraded version of the main brand ” By-Health Co.Ltd(300146) “. At present, it is sold in China’s cross-border e-commerce, Australia and Hong Kong offline channels. This brand is quite different from ” By-Health Co.Ltd(300146) ” brand in terms of product raw materials and formulations, main force channels and key categories, and the competition between the two will not be very big. Q: Progress of offline channel reform of the company
A: the core of offline sales reform is to bring incremental benefits to partners in the whole value chain. The main objectives include: (1) digital building of the whole marketing chain; (2) Set up a thousand people nutrition day group and rebuild the terminal innovation, marketing and service mode with incremental interests as the core.
In terms of digitalization of the whole marketing chain, by the end of 2021, dealers have fully completed the marketing cloud launch, standardized dealer business operations and relevant assessments through system standardized processes, and realized the online digitization of some business scenarios. The key work in 2022 includes the construction of marketing activities and cost control management module of the whole marketing chain project, the continuous promotion of 100% real channel operation and 100% digital integration of production, supply and marketing, etc., which is steadily advancing in the first quarter.
In terms of nutrition day group, by the end of March 2022, the on-the-job rate of the company’s nutrition day group personnel was about 9
In the first quarter, the number of implementation activities (including brand promotion activities) exceeded 30000, and each activity was implemented to the per capita sales, production ratio and other indicators. In March, the pilot projects in some cities were relatively successful, but the large-scale promotion was blocked due to the impact of the epidemic. The implementation progress of follow-up activities should be viewed in combination with the epidemic situation. Q: How does the company solve the problem of online distribution decline
A: before June 2021, the company’s online channel distribution proportion is high in the whole industry and cross industry. With the change of Alibaba’s ecology and platform structure, the overall distribution is declining.
What the company can do: (1) it needs to plant brands on other traffic platforms and emerging media, attract new users to enter the platform, and strengthen the guidance of new people and the construction of brand end; (2) Distribution and flagship stores complement each other. If the flagship store cannot maintain the normal growth level, distribution will not be expanded. Online channel development requires flagship stores to be stronger, and distribution will be stronger. Under the big logic, the company will adjust its small strategies. For example, the flagship store and the distribution store will make a difference in categories and promote the promotion investment of the distribution store. In recent years, the online income structure of mass consumer goods has changed, and the income proportion of clothing, cosmetics and other industries in Tiktok and Kwai has increased significantly. Under this general trend, it is necessary to further increase the layout of Tiktok, Kwai and other platforms. At present, the white list of health food has not been opened for Tiktok live broadcast. The company can only use the layout of ordinary food. After the white list of health food is opened, the company may make a greater breakthrough on the Tiktok platform. Q: Distribution of platforms in the company’s online channels
A: there are differences in the platform structure of different brands of the company. From the perspective of main brands, Alibaba and jd.com have been laid out for many years, and are still the main sales platforms. In the past two years, Tiktok, Kwai and other platforms have increased their investment, accounting for nearly 10%. The sales proportion of “byhealth” brand in Tiktok and Kwai is higher than that of the main brand.
Q: How does the company view the output ratio and profitability of the platform
A: the company is a leader in the industry. Any emerging channel company with potential will test the layout. At present, the platform expenses of the brand in Tiktok and Kwai are relatively high, and the profitability is weaker than that of the traditional e-commerce platform.
Q: Current competition pattern of online channel industry
A: online channel competition in the industry has always been very fierce, including price, marketing methods, product innovation (outer packaging, dosage form) and other aspects, which has high requirements for the ability of the brand in all aspects.
Q: Overall situation of dietary and nutritional supplement industry
A: the company continues to pay attention to the changes of various channels in the industry. In the first quarter of 2022, the sales of health food and health food in pharmacies in key cities tracked by the company decreased; Ali platform health food / dietary nutrition supplementary food industry maintained positive growth, but the growth rate slowed down compared with previous years; JD platform medical and health care industry maintained rapid growth. In the past two years, the market share of top 10 brands on Alibaba and jd.com platforms has decreased, and the hot selling categories and brand ranking of Alibaba platform have changed greatly, resulting in fierce competition.
Q: How to evaluate the impact of the epidemic on the company’s business in the second quarter
A: at present, online in April
