By-health(SZ:300146)2024-03-18 16:00Financial Performance - In 2023, BYHEALTH achieved a sales revenue of 9.407 billion RMB, a year-on-year increase of 19.66%, and a net profit attributable to shareholders of 1.746 billion RMB, up 26.01%[2]. - The company's operating revenue for 2023 reached ¥9,406,813,736.75, representing a 19.66% increase compared to ¥7,861,411,752.82 in 2022[27]. - The net profit attributable to shareholders for 2023 was ¥1,746,309,643.81, a 26.01% increase from ¥1,385,850,718.02 in the previous year[27]. - The net profit after deducting non-recurring gains and losses was ¥1,596,944,142.86, up 16.09% from ¥1,375,593,143.88 in 2022[27]. - The net cash flow from operating activities increased by 48.77% to ¥2,051,410,047.56, compared to ¥1,378,929,741.88 in 2022[27]. - The total assets of the company at the end of 2023 were ¥15,098,017,428.13, reflecting a 14.75% increase from ¥13,157,665,481.56 in 2022[27]. - The net assets attributable to shareholders increased by 13.78% to ¥12,166,989,799.91 from ¥10,693,280,978.92 in the previous year[27]. - The basic and diluted earnings per share for 2023 were ¥1.03, a 25.61% increase from ¥0.82 in 2022[27]. - The weighted average return on equity rose to 15.34% at the end of 2023, up from 13.46% at the end of 2022, an increase of 1.88 percentage points[27]. - The company reported a net profit of ¥1,029,519,641.37 in Q1 2023, with a significant drop to -¥154,797,308.89 in Q4 2023[29]. Market Overview - The retail market size for vitamins and dietary supplements in China reached 225.3 billion RMB in 2023, with a growth rate of approximately 11.6%, and BYHEALTH's market share increased to 10.4%[2]. - E-commerce channels accounted for an estimated 56% of the dietary supplement market in China, with a growth rate of 30.7% for the year, surpassing 100 billion RMB in transaction value[2]. - The average per capita consumption of vitamins and dietary supplements in China was 23.3 USD, reflecting an increase of 11.5%[2]. - The aging population in China is projected to exceed 300 million by 2035, creating growth opportunities for the dietary supplement industry[35]. - The overall trend in the health supplement industry is positive, supported by government policies promoting health and nutrition[36]. Product Development and Innovation - In 2023, BYHEALTH initiated a product upgrade project focusing on raw materials, formulations, and functions to enhance "scientific nutrition"[5]. - The company submitted a new functional health food registration application aimed at maintaining normal platelet aggregation, with research published in reputable journals[5]. - BYHEALTH published 18 SCI articles in 2023, emphasizing its commitment to research in areas like cardiovascular health and anti-aging[5]. - The company developed over 30 customized raw materials and obtained 113 invention patents related to raw materials and formulations by the end of the reporting period[38]. - The company is committed to technological innovation and has implemented a "scientific nutrition" strategy to enhance its product offerings[38]. - The company launched several new health products, including "Jianli Duo® Glucosamine Chondroitin Vitamin D Calcium Tablets" and "Mei Ri Mei Jia® Collagen Peptide Soy Peptide Sodium Hyaluronate Powder" in August 2023[63]. - The company has expanded its product offerings with new health supplements, including "Shu Ba Ning® Nattokinase Red Yeast Ginkgo Leaf Capsules" and "Tang Chen Bei Jian® Monkey Head Mushroom Sea Buckthorn Seed Soft Capsules" launched in November and December 2023[63]. - The company is actively engaged in research and development, with multiple new patents related to probiotics and their applications filed in 2023, including "Bifidobacterium 207-1" and "Lactobacillus 207-27"[61]. Strategic Initiatives - The company plans to implement a "无人化" (unmanned) strategy as part of its long-term vision, focusing on smart and digital transformation[7]. - The key focus for 2024 is "兑现" (fulfillment), aiming to translate strategic transformations into tangible business results[8]. - The company aims to enhance its research and development capabilities through collaborations with academic institutions and research organizations to drive product innovation[14]. - The company is exploring new brands and business models in the consumer health sector, which may involve uncertainties in execution and profitability[15]. - The company plans to strengthen its governance structure and enhance risk management capabilities to protect minority shareholders' rights[140]. Quality Control and Compliance - The company emphasizes quality control as a core value, with eight principles guiding its quality management to ensure product safety and reliability[11]. - The company has established a transparent factory management system, recognized as the first in the world for dietary supplements, enhancing quality control and production transparency[39]. - The company has received the National Quality Benchmark Award for its quality control efforts and implemented a comprehensive quality management system[71]. - The company is actively participating in the formulation and revision of industry regulations to strengthen its core competitiveness and innovation capabilities in response to increasing regulatory pressures[12]. Financial Management and Investments - The company plans to distribute a cash dividend of 9.00 yuan per 10 shares (including tax) to all shareholders, with no stock bonus or capital reserve conversion[18]. - The company reported a total cash dividend amount, including other methods, reached RMB 1,536,382,603.60, representing 100% of the total distributable profit of RMB 3,531,311,524.10[176]. - The company has established a comprehensive and effective internal control system, ensuring compliance, asset security, and the integrity of financial reporting, with 92.90% of total assets and 86.53% of total revenue included in the evaluation scope[186]. - The company has not encountered any issues during the integration of subsidiaries, indicating effective management control[185]. Human Resources and Governance - The company has established a comprehensive talent training system, including leadership training and online learning platforms, to enhance employee capabilities[173]. - The total number of employees at the end of the reporting period is 3,745, with 1,452 in the parent company and 2,293 in major subsidiaries[170]. - The company has established a remuneration decision-making process for directors and senior management based on performance and responsibilities[158]. - The company has a dedicated team for investor relations, ensuring timely responses to inquiries and maintaining good relationships[146]. Future Outlook - In 2024, the company plans to achieve a single-digit revenue growth year-on-year, subject to uncertainties in the future operating environment[125]. - The company aims to focus on the development of new raw materials and products, particularly probiotics and natural extracts, to create differentiated competitive advantages[126]. - A digital committee will be established in 2024 to implement a digital strategy over the next three to five years, focusing on cost control and enhancing overall collaboration through digital transformation[129].