By-health(SZ:300146)2019-07-30 16:00Financial Performance - The company reported a revenue increase of 15% year-on-year for the first half of 2019, reaching approximately RMB 1.2 billion[6]. - Total revenue for the first half of 2019 reached ¥2,969,774,935.37, representing a 36.88% increase compared to ¥2,169,666,705.82 in the same period last year[22]. - Net profit attributable to shareholders was ¥866,851,366.08, up 23.03% from ¥704,607,102.68 in the previous year[22]. - Net profit after deducting non-recurring gains and losses was ¥848,597,310.20, reflecting a 26.67% increase from ¥669,948,590.56 year-on-year[22]. - Basic earnings per share increased to ¥0.59, a rise of 22.92% compared to ¥0.48 in the same period last year[22]. - The company has set a revenue guidance of RMB 2.5 billion for the full year 2019, representing a growth target of 12%[6]. - The company achieved a revenue of 2.97 billion CNY in the first half of 2019, representing a year-on-year growth of 36.88%[37]. - The main brand "汤臣倍健" saw a revenue growth of 14.44%, while the joint care brand "健力多" experienced a significant increase of 53.71%[37]. User Growth and Market Strategy - User data indicates a growth in active users by 20%, with a total of 5 million active users as of June 30, 2019[10]. - The company plans to expand its product line by launching three new health supplement products in the second half of 2019[10]. - The company is actively expanding its e-commerce branding efforts to achieve full-channel integration and innovation[27]. - The company is focusing on three major product strategies, including the promotion of "健力多," "健视佳," and "Life-Space" to expand market reach[40]. - The company aims to transition from a single product provider to a comprehensive health intervention solution provider, focusing on high-quality and differentiated product offerings[27]. Financial Position and Assets - The company's total assets as of June 30, 2019, were ¥9,594,515,938.11, a decrease of 2.00% from ¥9,790,445,489.84 at the end of the previous year[23]. - Net assets attributable to shareholders increased by 3.01% to ¥5,759,903,328.69 from ¥5,591,786,199.13 at the end of the previous year[23]. - The company's cash and cash equivalents at the end of the reporting period were CNY 1.96 billion, accounting for 20.40% of total assets[54]. - The company reported a significant increase of 236.25% in construction in progress, totaling CNY 208.29 million, mainly for the construction of a nutrition exploration center[55]. - The company’s total assets at the end of the reporting period were CNY 7,016,228,819.44, indicating a stable asset base[128]. Costs and Expenses - The gross profit margin for the first half of 2019 was reported at 45%, a slight decrease from 47% in the same period last year due to rising raw material costs[7]. - Operating costs increased by 42.14% to RMB 950,022,252.60, primarily due to the rise in sales[50]. - Sales expenses rose by 50.75% to RMB 743,911,106.15, attributed to increased brand investment and consolidation of LSG[50]. - Research and development investment grew by 46.28% to RMB 48,568,572.23, driven by multiple ongoing R&D projects[50]. Acquisitions and Investments - The company has completed the acquisition of Life-Space Group Pty Ltd, with an integration plan focusing on financial and operational synergies[11]. - The company has acquired children's nutritional supplement brand "Penta-vite" and Australian probiotic brand "Life-Space" to enhance its brand matrix[27]. - The company did not make any significant equity investments during the reporting period, with a total investment amount of CNY 0[58]. - The company reported a significant related party transaction involving procurement from Dongtai Cibainian Biological Co., amounting to 613,200 RMB, which represents 0.06% of similar transaction amounts[86]. Shareholder and Equity Information - The company has no plans to distribute cash dividends or issue bonus shares for the current fiscal year[12]. - The company completed the cancellation of 54,000 restricted stocks, reducing the total share capital from 1,468,817,880 shares to 1,468,763,880 shares[20]. - The total number of shares decreased from 1,468,817,880 to 1,468,763,880, a reduction of 54,000 shares[100]. - The company approved the cancellation of shares at the 2018 annual general meeting, with 99.9638% of votes in favor[102]. Regulatory and Compliance Matters - The company applied to the China Securities Regulatory Commission (CSRC) to suspend the review of its share issuance for asset acquisition on May 15, 2019[94]. - The company received multiple feedback notices from the CSRC regarding its asset acquisition application throughout early 2019, indicating ongoing regulatory scrutiny[95]. - The company’s stock was suspended on April 16, 2019, due to the review of its asset acquisition application by the CSRC[95]. - The company has not faced any media scrutiny or legal penalties during the reporting period[77]. Research and Development - The company is in normal execution of its strategic cooperation agreements for R&D with BASF and Bioiberic, focusing on precise nutrition and functional health products[89]. - Research and development expenses rose to ¥51,502,576.97, a 56% increase from ¥33,069,646.63 in the first half of 2018[118]. - The company capitalizes expenses related to health food registration and inspection fees for new product projects, indicating a focus on regulatory compliance[187]. Cash Flow and Financial Management - The net cash flow from operating activities was ¥480,068,086.46, down 18.79% from ¥591,108,757.19 in the same period last year[22]. - The net increase in cash and cash equivalents was approximately CNY 144.60 million, a decrease of 114.27% compared to the previous year[51]. - The cash flow from operating activities showed a positive trend despite the overall decrease in net cash flow, indicating potential for future growth[127]. - The company’s financial statements are prepared in accordance with the Chinese Accounting Standards and reflect the financial status, operating results, and cash flows accurately[140].