By-health(SZ:300146)2025-03-21 11:50Market Performance - In 2024, the retail market size of the vitamin and dietary supplement industry in China reached 232.3 billion yuan, growing approximately 3.7% year-on-year, with the company maintaining a market share of 9.3%[2]. - The online sales channel for dietary supplements experienced rapid growth, while sales in offline pharmacies declined by about 20% year-on-year in 2024[2]. - The company's operating revenue for 2024 is CNY 6,838.39 million, a decrease of 27.30% compared to CNY 9,406.81 million in 2023[41]. - The net profit attributable to shareholders for 2024 is CNY 652.83 million, down 62.62% from CNY 1,746.31 million in 2023[41]. - The company's online domestic revenue was CNY 1,221,835,284.28, down 28.21% year-on-year, with a gross margin of 69.97%, a decrease of 4.33 percentage points[69]. - The offline revenue reached CNY 3,124,982,730.17, a decline of 31.98% year-on-year, with a gross margin of 66.35%, down 1.32 percentage points[69]. - The overseas revenue amounted to CNY 637,461,533.78, decreasing by 21.16% year-on-year, with a gross margin of 55.30%, down 1.63 percentage points[69]. Financial Performance - The net profit after deducting non-recurring gains and losses is CNY 626.31 million, a decline of 60.78% from CNY 1,596.94 million in 2023[41]. - The cash flow from operating activities for 2024 is CNY 685.94 million, a significant drop of 66.56% from CNY 2,051.41 million in 2023[41]. - The basic earnings per share for 2024 is CNY 0.39, down 62.14% from CNY 1.03 in 2023[41]. - The total assets at the end of 2024 amount to CNY 14,279.75 million, a decrease of 5.42% from CNY 15,098.02 million at the end of 2023[41]. - The net assets attributable to shareholders decreased by 9.17% to CNY 11,050.97 million at the end of 2024 from CNY 12,166.99 million at the end of 2023[41]. Strategic Initiatives - The company plans to fully upgrade its international market expansion strategy in 2025[7]. - The company aims to focus on quality and sustainable core business operations, emphasizing a strategy of "attack first" rather than defense[5][14]. - The company is committed to reducing low-quality and negative-value operations while enhancing high-quality initiatives[15]. - The company emphasizes the importance of returning to the essence of business value creation and the first principles of business[10][11]. - The company will actively participate in the formulation and revision of industry regulations to strengthen its core competitiveness and innovation capabilities[26]. Research and Development - In 2024, the company collaborated with the Shanghai Institute of Nutrition and Health to develop a health assessment system, resulting in breakthroughs in multi-dimensional evaluation of homeostasis and the addition of several patents[15]. - The company developed over 30 customized raw materials and obtained 130 invention patents for raw materials and formulas by the end of the reporting period[63]. - The company is focusing on innovative product development, with multiple patents related to probiotics and health supplements filed in 2024[90]. - The company is actively engaged in research related to gut health and cognitive function, as evidenced by multiple publications in reputable journals[94][95]. - The company aims to enhance its scientific and technological capabilities in nutrition to better serve consumer needs[94]. Operational Challenges - The company acknowledges significant operational pressures and challenges ahead in 2025, indicating that "shock therapy" is only a temporary measure[18]. - The company faced significant operational pressure due to slower-than-expected upgrades of its two core products[96]. - The competitive landscape in the industry has intensified, prompting the company to adjust brand operation strategies and resource allocation[96]. - The company emphasizes core brands, channels, and categories to improve operational quality amid changing consumer environments[96]. Product Development - The company has launched several new products, including various protein powders and vitamin supplements, to expand its product portfolio[93]. - The company aims to enhance its product offerings through strategic acquisitions and partnerships in the health and wellness sector[90]. - The company is expanding its market presence with new health food products targeting specific health benefits, including weight management and immune support[91]. - The company has developed a new product line including "Conjugated Linoleic Acid Soy Peptide Powder" and "Dan Shen Pearl Powder Capsules," both approved on January 6, 2024[91]. Corporate Governance - The company has established a comprehensive governance structure, including a board of directors, supervisory board, and management team, ensuring compliance with relevant laws and regulations[179]. - The company emphasizes shareholder returns through reasonable share repurchases and profit distribution strategies, ensuring a balance between growth and investor rewards[174]. - The company has established a performance evaluation and incentive mechanism for directors and senior management, with the nomination, remuneration, and assessment committee responsible for reviewing performance assessments[183]. - The company has revised its internal control systems and governance documents to align with the latest legal requirements and improve operational standards[172]. Investor Relations - The company conducted multiple investor meetings in January 2024, discussing operational performance and future development plans[163]. - The company emphasizes investor relations management, actively engaging with investors through various channels, including online performance briefings and site visits[183]. - The company held a temporary shareholders' meeting on February 2, 2024, with a participation rate of 51.95%, where several resolutions were passed, including the approval of the 2024 restricted stock incentive plan[186]. - The annual shareholders' meeting on April 11, 2024, had a participation rate of 50.94%, during which the 2023 annual report and profit distribution plan were approved[186].