By-health(SZ:300146)2022-03-04 16:00Financial Performance - In 2021, the company achieved a sales revenue of 7.431 billion yuan, a year-on-year increase of 21.93%, with a comparable growth rate of 15.38% after excluding the consolidation of Maiyou Company[2]. - The net profit attributable to shareholders was 1.754 billion yuan, reflecting a year-on-year growth of 15.07%, slightly exceeding the initial budget[2]. - The company's operating revenue for 2021 was ¥7,431,278,129.59, representing a 21.93% increase compared to ¥6,094,900,943.70 in 2020[28]. - The net profit attributable to shareholders for 2021 was ¥1,753,979,273.19, a 15.07% increase from ¥1,524,251,245.95 in 2020[28]. - The net cash flow from operating activities for 2021 was ¥1,818,978,027.97, an increase of 16.13% compared to ¥1,566,364,373.94 in 2020[28]. - The total assets at the end of 2021 were ¥12,965,926,741.50, a 34.50% increase from ¥9,640,262,595.41 at the end of 2020[28]. - The net assets attributable to shareholders at the end of 2021 were ¥10,493,948,552.08, reflecting a 51.35% increase from ¥6,933,550,029.76 at the end of 2020[28]. - The company reported a basic earnings per share of ¥1.06 for 2021, up 10.42% from ¥0.96 in 2020[28]. - The total revenue for 2021 reached ¥7,431,278,129.59, representing a year-over-year increase of 21.93% compared to ¥6,094,900,943.70 in 2020[70]. - The main business revenue was ¥7,375,353,771.02, with a year-over-year growth of 21.40% from ¥6,075,121,061.29[70]. Market Position and Strategy - The company's market share in the Chinese vitamin and dietary supplement industry reached 10.3%, maintaining the leading position, with the second and third competitors holding 6.0% and 5.0% market shares respectively[2]. - The total market size of the vitamin and dietary supplement industry in China was ¥189.2 billion in 2021, growing by 6.60% compared to the previous year[35]. - The company operates in the dietary supplement industry, which has significant growth potential due to increasing health awareness and an aging population in China[35]. - The company has implemented a strategy focused on creating value for users' health, establishing a comprehensive dietary supplement system through research and acquisitions[37]. - The company recognizes the aging population as a significant market opportunity for the VDS industry, emphasizing the potential of the "silver economy"[6]. Research and Development - The company plans to transform into a strong technology enterprise, aiming to launch a unique high-tech functional product every two to three years, contributing incremental value to consumer health[5]. - In December 2021, the company collaborated with global experts to extract anti-aging substances from specific grape seeds, with results published in the journal Nature Metabolism[4]. - The company established the Shanghai Research Center and AI Research Center in 2022 to enhance its technological capabilities[6]. - The company is focused on expanding its scientific nutrition strategy to meet the growing health needs of consumers in the post-pandemic era[38]. - The company has established partnerships with leading research institutions to enhance its nutritional science research and product innovation[38]. - The company is actively pursuing research and development initiatives to innovate in the health and nutrition space[60]. Operational Challenges and Risks - The company acknowledges risks related to recurring COVID-19 outbreaks, which may impact production and operations, and plans to implement proactive measures[10]. - The company faces product quality and food safety risks due to the diverse range of dietary supplements, and it is committed to enhancing quality management and safety protocols[11]. - The company is adapting to stricter industry regulations and policies, which may increase operational challenges and pressures[12]. - Rising raw material costs and potential shortages could affect product gross margins, prompting the company to diversify suppliers and manage procurement strategically[13]. - The expansion of the distributor network increases market control risks, necessitating improved sales management and regional coordination[14]. - The integration of LSG, acquired in a cross-border transaction, presents challenges due to differences in operational practices and cultures, requiring careful management[17]. Corporate Governance and Compliance - The company established a governance structure comprising a shareholders' meeting, board of directors, supervisory board, and management team, ensuring compliance with relevant regulations[119]. - The board of directors consists of 7 members, including 3 independent directors, meeting legal and regulatory requirements[120]. - The company has implemented regular self-assessments of its governance practices and conducted training for its directors and supervisors to enhance compliance awareness[119]. - The company has maintained independence from its controlling shareholder, ensuring no interference in decision-making or operational activities[119]. - The company has committed to transparency in its shareholder meetings, ensuring equal rights for all shareholders, particularly minority shareholders[119]. Environmental Responsibility - The company has established a wastewater treatment station to ensure compliance with discharge standards, with a chemical oxygen demand (COD) concentration of 47.5 mg/L, well below the standard of 165 mg/L[159]. - The total wastewater discharge was 5.347 tons, with no instances of exceeding the permitted discharge limits[159]. - The company has received multiple environmental honors, including "National Green Factory" and "Environmental Friendly Enterprise"[164]. - The company has implemented various environmental protection projects, such as photovoltaic power generation and wastewater recycling, achieving significant results[164]. - The company emphasizes environmental responsibility by promoting energy conservation, greenhouse gas emission reduction, and recycling initiatives[172]. Investor Relations and Shareholder Engagement - The company emphasizes investor relations management, providing dedicated communication channels including a hotline and email for investor inquiries[123]. - The company has a dedicated investor relations section on its official website to publish timely information disclosure documents[123]. - The company has committed to ensuring timely and efficient decision-making to protect the rights of shareholders[140]. - The company has established a sound investor return mechanism, including a profit distribution plan for 2017-2019, ensuring compliance with profit distribution conditions[180]. - The company has distributed a total cash dividend of 470,212.81 million RMB since its listing, accounting for 84.11% of the net profit attributable to shareholders from 2010 to 2020[171]. Social Responsibility - The company has established 18 Hope Primary Schools as part of its 1+1+Hope Project, with the 18th school expected to be inaugurated in the first half of 2022[173]. - The company has conducted over 6,100 health-related public welfare activities as part of its "Health Express Nutrition China Tour" initiative[173]. - The company has donated over 10 million RMB to support UNICEF's projects on infant feeding practices and social policy environments from 2020 to 2022[174]. - The company has provided nutritional products and medical supplies worth over 25 million RMB to frontline workers and Hope Primary Schools during the COVID-19 pandemic[174]. - The company has actively participated in the "Guangdong Poverty Alleviation Day" event, donating a total of 600,000 RMB to support poverty alleviation and rural revitalization efforts in Guangdong[175].