BY-HEALTH Achieves an Operating Income of ￥1,068 Million in Q1 2018, With Its Net Profit Grows by 31.39% Year on Year 

2018.4.26 

^{On April 24, BY-HEALTH Co., Ltd published its Q1 2018 report. The report shows that from January to March in 2018, BY-HEALTH realized an operating income amounted to ￥1,068 million, up by 45.03% from the same period last year; and the net profit attributable to the shareholders of listed companies amounted to ￥372 million, a year-on-year increase of 31.39%.}

^{BY-HEALTH basically completed business integration and structural adjustment by the end of 2017. The upward trend continued in Q1 of 2018. According to its established 2018 Annual Business Plan, BY-HEALTH further intensified its efforts for the strategy of "Large Individual Product", implemented the strategy of "e-commerce branding 2.0", and further pursued the strategy of cross-border e-commerce, and thereby proceeded with a new growth cycle.}

^{In 2017, the Company achieved excellent results in the Large Individual Product campaign. Besides the outstanding performance from marketing of "KEYLID", its first large individual product, the Company was continuously expanding the market for all other types of products, thus enabling growth in offline channels. In Q1 of 2018, "KEYLID" still sold well and it maintained a stable growth. According to the Company, in the future, it will expand its customer base for KEYLID not only among people aged 50 and over through offline channels, but also base among young sports group through online channels, so as to increase its share of market. In addition, the success in marketing of "KEYLID was used as reference for the promotion of “Jianshijia”, another large individual product of BY-HEALTH. The Company launched the pilot “Jianshijia” marketing programme in such major markets as Liaoning and Sichuan, and put television advertisements simultaneously in the television programmes of satellite, provincial and municipal television stations.}

^{In the light of its younger consumer-oriented mode of development, in Q1, the Company started to implement the e-commerce branding 2.0 and enhanced communication with young consumers, by developing an independent e-commerce brand system, pursuing a segmentation strategy of brand communication for online and offline channels, and promoting e-commerce digitalization. In March, BY-HEALTH and the British Museum jointly launched a custom collagen powder gift pack for ladies; meanwhile, the launch of “F6 Super Shot” was the first step of BY-HEALTH towards the functional beverage market for young consumers.}

^{Since Q1, the Company has continued to promote the mergers and acquisitions under the guidance of overall strategy to create a "United Nations" of nutrition supplements. In January 2018, BY-HEALTH announced that it intended to purchase 100% shares of Life-Space, an Australian probiotic company. The acquisition formed an important part of BY-HEALTH’s development in global market segments. Besides, in March, the Company announced that, it, in conjunction with Guangzhou Zhuoshi Mingyu, Zhuhai Zhuoshi Yongshang, and Chengcheng Investment, has established Guangzhou Weilai Zhuoshi Equity Investment Fund Partnership (a limited partnership). With the establishment of the partnership, the Company can make better use of capital operations, seize favorable opportunities in consumption and the big health industry, as well as achieve more returns on investment by utilizing the resources and capacities of professional investment institutions.}

^{Some analyses indicate that, BY-HEALTH will have bright prospects as it has clear strategic thinking, maintains stable growth, and has gained a foothold in several segments.}