By-health(SZ:300146) Sou Hu Cai Jing·2025-03-24 07:08Core Viewpoint - Tongrentang Baijian has reported its worst annual performance ever, with significant declines in both revenue and net profit, indicating a severe downturn in its business operations and market position [1][4]. Group 1: Financial Performance - In 2024, Tongrentang Baijian achieved a revenue of 6.838 billion yuan, a decrease of 27.30% compared to the previous year [1]. - The net profit attributable to shareholders was 653 million yuan, down 62.62% year-on-year, with a shift to a net loss of 22.42 million yuan in Q3 and a further loss of 216 million yuan in Q4 [1][3]. - The company’s total market value has plummeted to approximately 20.5 billion yuan, a reduction of two-thirds from its peak market value of over 60 billion yuan in 2021 [1]. Group 2: Industry Context - The dietary supplement (VDS) market in China reached a retail scale of 225.3 billion yuan in 2023, growing by about 11.6% year-on-year, with a projected growth of 3.7% to 232.3 billion yuan in 2024 [2]. - Despite the overall market growth, Tongrentang Baijian's performance has been characterized by a significant decline across all its major brands and sales channels [4]. Group 3: Market Challenges - The company faces intensified competition from new entrants in the dietary supplement market, with a record number of new companies emerging, leading to price wars and market share erosion [5]. - The shift in consumer demographics towards younger consumers has resulted in a mismatch between Tongrentang Baijian's traditional product offerings and the preferences of the new consumer base [9][12]. - The company's reliance on traditional sales channels has hindered its ability to adapt to the rapidly growing e-commerce landscape, particularly in live-streaming sales [13][16]. Group 4: Product and Channel Strategy - Tongrentang Baijian's product lineup remains heavily focused on traditional items like protein powder and calcium supplements, which are less appealing to younger consumers [7]. - The company has attempted to upgrade its core products but has faced challenges in execution, leading to significant revenue declines [6][5]. - The transition to online sales has been slow, with the company missing out on the explosive growth of platforms like Douyin and Kuaishou, which have become critical for market penetration [14][16].