Later this Monday (October 25), BYHEALTH Co., Ltd. (SZSE: 300146, BYHEALTH or the Company) published its 2021Q3 Report. In the first three quarters of 2021, the Company realized revenue of CNY 6.029 billion, up by 19.79% year-on-year; and the net profit attributable to parent company's shareholders was CNY 1.663 billion, increasing by 13.37% year-on-year.

For domestic business development in the first three quarters, the main brand "BYHEALTH" recorded the revenue of CNY 3.643 billion, a year-on-year increase of 22.01%. The joint health brand "KEYLID" achieved a revenue of CNY 1.156 billion, a year-on-year increase of 6.57%. The revenue from domestic products of "Life-Space" reached CNY 165 million, up 26.00% year-on-year. By channel, offline channels represented roughly 69.24% of total domestic revenue, with 5.51% rise from the prior year; online channels saw 57.79% hike in the percentage of revenue.

For foreign businesses, LSG maintained rapid growth in major cross-border EC platforms. In the first three quarters, LSG realized revenue of CNY 496 million, 13.83% higher from a year earlier.

In this July, the Company launched reforms on offline sales and online/offline-integrated operations, inflicting some stress and challenge against itself and related parties. In 2021Q3, domestic offline business developed against pressure, while domestic online business and LSG overseas business sustained upward momentum.

Revolving around the four strategies, namely, "science-based nutrition", "whole-chain digitalization", "a super supply chain" and "the management of users' assets", the Company stepped up business innovations and carried out major projects with continuous effort in 2021, in a bid to build and foster new core competitive edge. The Company launched "Shu Bai Ning", a new generation, herbal power, auxiliary, lipid-lowering product, targeting cardiovascular and cerebrovascular sectors. The Company also established a standalone business system and retail network for functional food and built the brand "Meirimeijia" intended as a Gen-Z-concerned daily nutritional food brand. The new band is expected to help the Company with business growth in the future.

Facing up to the new consumer environment, the Company will embrace change through innovation, respond to change with speed. Regarding product research & development, more hero products will be rolled out under the instruction of the science-based nutrition strategy; more workable offline business moves that are conducive for terminal marketing will be taken; and more new products featuring new functions, new formulations and new technologies will be delivered to young users online. In addition, the Company will also rejuvenate its business team with greater passion and vigor. We actively responded to market change, focused on integration of internal resources and took a series of business innovation and reform measures, which, according to some institution, would have a favorable impact on our performance in the long run.