March 4,BY-HEALTHCo., Ltd. (stock code: 300146) released the 2021 annual reportperformanceReport. 2021,BY-HEALTHaccomplishOperating income7.431 billion yuan, an increase of 21.93% over the same period last year; attributable to listed companiesshareholderofnet profit1.754 billion yuan, an increase of 15.07% over the same period of the previous year. Chairman Liang Yunchao simultaneously issued a letter to shareholders “Another eight years to build a strong technology-based enterprise”, hoping to use another eight years to initially complete the transformation of a strong technology-based enterprise; I hope that it can be launched to the market every two or three years in the future. An original high-tech and functional product developed by us, which can bring incremental value to the health of consumers; firmly implement the scientific nutrition strategy, and strive to become one of the most technologically and innovative VDS companies in the world .
The full text of the letter to shareholders is as follows.
“Another eight years to build a strong technology-based enterprise”
——BY-HEALTHChairman’s Letter to Shareholders
Dear By-Health Shareholders:
In 2021, By-Health achieved sales revenue of 7.431 billion yuan, a year-on-year increase of 21.93%. The comparable growth rate after excluding Maiyou Company’s consolidation was 15.38%, which was lower than the budget at the beginning of the year; the net profit attributable to the parent was 1.754 billion yuan, a year-on-year increase. 15.07%, slightly higher than the budget at the beginning of the year.
According to Euromonitor data, the total retail scale of China’s vitamin and dietary supplement (VDS) industry in 2021 will be 189.2 billion, with a growth rate of about 6.6%. By-Health has a share of 10.3%, ranking first. The second and third market shares were 6.0% and 5.0%, respectively. Compared with the previous year, By-Health‘s lead has expanded.
In 2021, the per capita consumption of dietary supplements in China is US$20, an increase of 6.3%, slightly higher than the global average and about 20% of that in the United States. The changes in the channel structure of the overall market in the industry have slowed down. In 2021, the market share of e-commerce and pharmacy channels will be relatively stable compared with the previous year, while the market share of direct sales channels will continue to decline.
“Scientific Dietary Guidelines for Chinese Residents” issued by the Chinese Nutrition Societyresearch report(2021)” pointed out that the nutritional status and physique of Chinese residents have improved significantly, but the level of physical activity has dropped significantly. Overweight and obesity and diet-related chronic diseases are becoming more and more serious. Chronic diseases such as diabetes, hypertension, and cardiovascular and cerebrovascular diseases are on the rise. Unbalanced diet has become a major risk factor for chronic diseases, and diets high in oil, salt and sugar are common. In addition, the exclusive breastfeeding rate of infants within 6 months of age is still far from the target. Although the rate of anemia in 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 regulatory system of China’s dietary supplement industry continues to improve, but the current regulatory standards for cross-border and domestic, health food and general food are not uniform. The rapid rise of new formats such as live e-commerce has also put forward higher requirements for industry self-discipline and supervision. Tighten the red line and bottom line awareness at all times, and jointly care for the young Chinese dietary supplement industry. The basic positioning of dietary supplements should be kept in mind at all times: raw materials are vitamins, minerals, animal and plant extracts, etc.; it can balance nutritional intake and regulate human body functions for specific groups of people; it cannot replace normal diet or drug treatment. disease. Without health, there is no future.
Honesty is more important than cleverness!
From the beginning of 2021, I began to think about the “quality” and “quantity” issues presented by the Chinese consumer goods market in the past two years. I visited a number of consumer goods companies with the team, including quite a few emerging consumer brands. Each company gave me different inspirations and gains.
From one thousand people to one thousand people to one thousand faces to one person, consumer goods brands are going through the transition from variety brands to category brands to corporate brands, that is, from commodity brands to corporate personality brands. In a sense, a brand is “character”, and the character of the management team must match the brand of consumer goods. The consumer goods industry is also undergoing a transition from the era of brand owner sovereignty to the era of channel owner sovereignty to the era of consumer sovereignty.
From time to time, various channels see digital carnivals that hear various “quantity” in face, while the “quality” of lining is often ignored by all parties or even by themselves. What we see may be the truth, but not necessarily the truth. You can see different facts from different angles. You need to see with your eyes, listen with your ears, and think with your heart and brain.
China’s consumer Internet dividend period has passed. “Low price” is one of the core keywords, and it is also regarded as the “most successful” keyword by many people. The mainstream business logic is to quickly achieve user accumulation under the impetus of capital, and look forward to successfully “harvesting” and becoming a unicorn in the later stage. Behind every “lying winner” may be the huge tuition paid by countless “lying people” and “laying down”. The flowers are brilliant, and that’s because there is plenty of fertilizer, and everyone involved has to figure out a question: Why can we be the only few flowers left, not the compost pile?
The brand involution in the traffic bottleneck, from “traffic to the top” to “traffic to escape the top”, is traffic a “stimulant” or a “poison”? It is true that capturing traffic dividends can make it bigger, but only if the brand/user compound interest can be precipitated can it become stronger. Only those who can cross the wave after wave of dividend cycles and even cross the test of one economic cycle can be regarded as an excellent consumer goods company, and their core competitiveness must come from internal forces, not external forces.
On November 4, 2021, freestyle skiing champion Gu Ailing became the brand ambassador of By-Health Yep Scientific Nutrition.
On December 28, 2021, BY-HEALTH became the supplier of sports food and nutritional products for the TEAM CHINA Chinese national team, providing sports food, nutritional products and professional nutritional preparation plans for athletes of more than 70 national teams.
On January 1, 2022, By-Health Jianliduo became the official bone health nutrition product supplier for the 19th Asian Games in Hangzhou in 2022.
To walk out of BY-HEALTH‘s “upward curve” with “upward thinking” is the direction we have always chosen.From global ingredients, transparent factories to today’s science-based nutrition strategy. The core of “upward thinking” is innovation and differentiation. Product quality and user experience are the basic guarantees for standard 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 quality. experience. With “upward thinking” to lead BY-HEALTH‘s upward competition curve and support the sustainable and healthy development of the company.
Infinite scenery is at the top!
In December 2021, BY-HEALTH cooperated with expert teams from many global institutions such as the Shanghai Institute of Nutrition and Health of the Chinese Academy of Sciences and the Mayo Clinic to extract the anti-aging substance PCC1 from specific grape seeds, which can accurately, efficiently and safely Clear senescent cells, the world‘s authoritative scientific journal “Nature Metabolism” published this anti-aging breakthrough scientific research.
On New Year’s Day in 2022, I internally sent out a new year’s vision for BY-HEALTH to transform into a strong technology company.
In 2014, it began to implement the strategic transformation of functional independent innovation and research and development. In eight years, it has achieved phased scientific research results such as innovative new functional products and PCC1 basic research. It is hoped that it will take another eight years to initially complete the transformation to a strong technology enterprise.
What is the strongest path to realize BY-HEALTH‘s transformation into a strong technology enterprise？
In the future, we will be able to launch an original high-tech product with heavy functions to the market every two or three years, which can truly bring incremental value to consumers’ health; Prospective research results such as anti-aging and precision nutrition have brought incremental value to the VDS industry.
To transform into a strong technology enterprise, what will BY-HEALTH do?
1. Implement the “scientific nutrition” strategy, and continue to build a different BY-HEALTH product strength and technological competitiveness advantage, empower the VDS industry with technological content, and bring incremental value to the VDS industry. The implementation of the “Scientific Nutrition” strategy will focus on the core competitiveness of science and technology. The specific implementation is reflected in three aspects: 1. R&D of proprietary raw materials and formulas; 2. R&D and registration of new functional and heavy-function products; 3. Anti-aging Prospective basic research results such as precision nutrition and precision nutrition were released.
2. Continue to strengthen and consolidate the product technology of BY-HEALTH‘s “high-end, high-end” functional health food products with outstanding competitive advantages, and to amplify BY-HEALTH‘s unique advantages.
3. In 2022, the Shanghai Research Center and AI Research Center of By-Health Nutrition and Health Research Institute will be established.
In February 2022, the company formulated the 2030 core goals and action plan for the transformation of strong technology enterprises.
What we do now determines what the future of BY-HEALTH can become.Now, BY-HEALTH will learn from global benchmark pharmaceutical companies, and strive to become the world‘s most technologically and innovative company.VDS EnterpriseNoichi。
At the beginning of these years, when is the circle of friends not predicting that “this year will be a particularly difficult year”? This year’s New Year’s Day, the circle of friends is full of some voices of “squatting”, “getting down” and “cat low”. In fact, there is no particularly difficult year. Every year is equally difficult, and the key is the same every year. The only difference is that the “difficulty” and “key” are different each year, that’s all.
Some emergency behaviors during the epidemic have become normal behaviors. The difficulties of normalization should not be regarded as difficulties, but should be regarded as normal, and opportunities for breakthroughs should be found in the existing normal. If we focus on the huge market space of the “silver-haired economy” that the accelerated aging will bring to the VDS industry in the golden N years, and the leading advantage of By-Health, 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 two types of people who ask questions and solve problems. The third type of people who are entangled in “who is right and who is wrong” are not scarce, let alone rare.
In the past 2021, we have experienced from the thinking of “quality” and “quantity” to the choice of “quality” and “quantity”.We will position 2022 as the year of BY-HEALTH‘s operation quality.
Business is an endless interest. First, consumers benefit, and then all participants in the value chain, including brands, channels, supply chains, and communities, must benefit, and a business that can continue to create benefits for everyone is the only way. It’s a long-term business. Back to the essence of business.
Business is also an endless creativity, you can never find it with an old mapNew World. BY-HEALTH, which is currently undergoing changes in the online and offline markets, drives the upgrade of offline sales models and the transformation and upgrading of traditional online e-commerce with the genes and courage of innovation and change, so as to bring “increase growth” to all partners in the industry and value chain. “Quantitative interests” as the core, break through the encirclement with “thorns”, and fight a bloody path.
More and more industries and more and more people will be forced to choose between “quality” and “quantity” in 2022. After all, the emperor’s new clothes will be streaking, and the head of an ostrich will eventually be pulled out of the sand. If you can take the initiative to win a certain time difference, you can have more “opportunities” than others in the “crisis”, and it is possible to prevent a bigger crisis before a bigger opportunity comes.
In 2022, we need more “quality” “quantity”, more healthy “quantity”, and more sustainable “quantity”. There is no “1” in front of “health“, and multiple “0” after it is meaningless. If it cannot create continuous incremental value for the health of consumers, nor can it create continuous incremental value for the stakeholders of the ecosystem, BY-HEALTH will have no existing value!
It’s harder to beat yourself than to beat your opponent. The more applause, the greater the risk, the more scolded the blood, the more the opportunity to retaliate. To bear the pain of the present, for a healthy future.
For BY-HEALTH and companies in many industries, 2022 may be a good year for Shen Xin to improve “quality”.
“Aim for the moon, and even if you fail, you can at least fall on the clouds.”
2022, peace and health, peace in the world.
Chairman of BY-HEALTH
Liang Yunchao
2022.03.04
(Article source: Beijing Business Daily)