By ZHANG Yi
Byhealth, a Chinese vitamin and dietary supplement maker, released its H1 report on August 4, revealing impressive results. The company achieved revenue of 5.6 billion yuan (US$780 million), 32.6 percent year-on-year growth. Net profit attributable to shareholders rose to 1.5 billion yuan, up by half, largely attributed to its performance in the first quarter.
Most of the growth came online. Although offline sales still account for over 60 percent of revenue, the increase in online revenue and gross profit margins far outpaced offline performance. Online revenue is still behind the industry average, and, with this year being the first after covid, offline channels may see a rebound.
Main brand Byhealth continues to be the top revenue generator, accounting for nearly 60 percent of the total. Key contributors to the revenue surge were sales of protein powder gift boxes and collagen protein gift boxes.
Sales expenses, on the other hand, also grew, by almost as much as income. Byhealth spent 1.8 billion yuan, on sales, up by more than a third.
Spending on sales is expected to remain high indefinitely. Byhealth's TANG Jinyin acknowledged that although online marketing expenses may impact profitability, the potential is substantial. Platforms like Douyin and Kuaishou have a user base in third-tier cities and below, assisting the company expand its reach.
