By-health(SZ:300146)2022-08-05 16:00Financial Performance - The company's revenue for the reporting period reached CNY 4,220,918,971.74, representing a slight increase of 0.55% compared to the same period last year [22]. - Net profit attributable to shareholders decreased by 23.55% to CNY 1,048,279,574.14 from CNY 1,371,139,629.45 in the previous year [22]. - The net profit after deducting non-recurring gains and losses was CNY 1,069,415,860.46, down 14.19% year-on-year [22]. - The net cash flow from operating activities fell by 53.12% to CNY 343,326,385.63 compared to CNY 732,399,164.64 in the same period last year [22]. - Basic earnings per share decreased by 27.06% to CNY 0.62 from CNY 0.85 in the previous year [22]. - Total assets at the end of the reporting period were CNY 12,148,421,014.42, a decrease of 6.31% from the previous year [22]. - Net assets attributable to shareholders decreased by 1.14% to CNY 10,374,112,941.03 from CNY 10,493,948,552.08 at the end of the previous year [22]. - The company reported a significant loss of CNY 70,425,246.91 from fair value changes of financial assets, primarily due to investments in the EVER ALPHA FUND L.P [25]. - Government subsidies recognized during the period amounted to CNY 38,593,308.90, contributing positively to the financial results [25]. - The weighted average return on net assets decreased by 7.00 percentage points to 10.05% compared to 17.05% in the previous year [22]. Market and Competitive Position - The company plans to actively participate in the formulation and revision of industry regulations to strengthen its core competitiveness and innovation capabilities [5]. - The company has significantly increased its distributor network since 2020, which raises the complexity of market management and requires enhanced sales management capabilities [7]. - The company aims to continuously enhance its R&D capabilities and collaborate with academic institutions to maintain market leadership [9]. - In 2021, the company held a 10.3% market share in China's vitamin and dietary supplement industry, maintaining the leading position [29]. - The company is exploring new brands and business models in the consumer health sector, which carries inherent uncertainties [10]. - The company is focusing on integrating online and offline marketing strategies to enhance consumer engagement and optimize product experience [37]. Research and Development - The company established a Nutrition and Health Research Institute to enhance innovation and core technology competitiveness, focusing on proprietary ingredient and product development [32]. - The company has a total of 324 patents, with 38 new patents added during the reporting period [57]. - The company has introduced several new patents related to health products, including a probiotic composition and methods for detecting vitamins D and K [58][59]. - The company has a range of new products in development, including probiotic drinks and various health supplements [60]. - Research and development expenses increased by 29.98% to approximately CNY 65.29 million, indicating a focus on innovation and product development [68]. Sales and Distribution - Domestic business revenue from the main brand "汤臣倍健" was 2.361 billion RMB, down 7.91% year-on-year, while "Life-Space" domestic products saw a revenue increase of 49.69% to 177 million RMB [30]. - The company's overseas LSG business generated revenue of 377 million RMB, a year-on-year growth of 23.79% [30]. - The company reported a total revenue of CNY 5,456,103,103.30 from online sales, with a gross margin of 68.98%, reflecting a year-on-year decrease of 17.76% in revenue [45]. - The offline sales revenue reached CNY 2,551,725,108.27, with a gross margin of 69.16%, showing a year-on-year decrease of 6.96% in revenue [45]. - The company's main product categories include tablets, powders, and capsules, with tablet sales generating CNY 1,083,248,167.64 and a gross margin of 76.62% [45]. Operational Challenges - The company acknowledges the ongoing risks from the pandemic, which may impact production and operations, and is preparing contingency plans [2]. - The company has implemented a differentiated strategy for raw material procurement, which may face risks from price increases and supply shortages [6]. - The company emphasizes quality management and has invested in precision inspection equipment to mitigate product quality risks [4]. - The number of domestic distributors decreased from 1,070 to 947, while the total number of distributors dropped from 1,171 to 1,041 during the reporting period [47]. - The sales volume of tablets decreased by 19.39% year-on-year, from 339,369.12 million pieces in 2021 to 273,551.14 million pieces in 2022 [54]. Environmental and Social Responsibility - The company has established a wastewater treatment station to ensure compliance with discharge standards, with a total discharge of 4.3 tons of COD and 0.007 tons of ammonia nitrogen [103]. - The company has received various environmental honors, including "National Green Factory" and "Environmental Friendly Enterprise" [105]. - The company has implemented measures to reduce carbon emissions, including photovoltaic power generation and wastewater recycling [105]. - The company has conducted over 6,900 activities under the "Health Express Nutrition China Tour" since 2011, promoting public nutrition education [115]. - The company has donated over 10 million RMB to UNICEF for projects related to infant nutrition from 2020 to 2022 [115]. Legal and Compliance - The company reported a total of 13,219.78 thousand yuan involved in non-material lawsuits, with 1,940.05 thousand yuan cases concluded and 11,279.73 thousand yuan cases still pending [123]. - The company has recognized a provision of 50 thousand yuan for ongoing lawsuits where it is a defendant, with 37.47 thousand yuan cases concluded and 1,095.51 thousand yuan cases still pending [123]. - The company has not engaged in any major related party transactions during the reporting period [127]. - The company has not reported any significant litigation or arbitration matters during the reporting period [122]. Investment and Financial Management - The company made significant equity investments totaling 134.88 million CNY during the reporting period, with a notable investment of 120 million CNY in Xiamen Weilai Zhuoshi Equity Investment Fund, holding a 34.08% stake [79]. - The total amount of entrusted financial management and cash management during the reporting period reached RMB 673,000,000, with an outstanding balance of RMB 360,000,000 [87]. - The company has not encountered any issues or problems in the use and disclosure of raised funds [85]. - The company has not reported any expected inability to recover principal or other impairment risks related to entrusted financial management [89]. Corporate Governance - The total number of ordinary shareholders at the end of the reporting period was 60,090, with a significant shareholder holding 41.79% of the shares [146]. - The total number of shares outstanding is 1,700,308,763, with 40.26% being restricted shares and 59.74% being unrestricted shares [144]. - The company has not undergone any changes in its controlling shareholder or actual controller during the reporting period [150]. - The company has not reported any significant changes in major contracts or other major matters during the reporting period [142].