Leading with strategic initiative

— 2025 Letter to Shareholders from the Chairman of BYHEALTH

Dear Shareholders of BYHEALTH,

The 10 billion revenue mark is a hurdle for any FMCG company, and we came to a sharp halt before that. 

Building a century-old brand is the dream of many entrepreneurs, and "crisis" is an unavoidable challenge on this journey. In May 2024, my team and I visited an overseas company with a history of over 200 years. Their leader shared that they had survived eight major crises, including wars, natural disasters, earthquakes, and even near bankruptcy due to high debt.

For many FMCG companies, 2024 was a year of hard landings, that traditional value chains were disrupted. BYHEALTH was no exception.

Underneath the raging storm and strong undercurrents, the new cycle of dietary supplement (VDS) industry is undergoing a dramatic transformation, with a shifting competitive landscape. A sharp decline is more of a wake-up call than a slow boiling frog.

According to the latest Euromonitor data, China’s vitamin and dietary supplement (VDS) market reached a total retail value of RMB 232.3 billion in 2024, reflecting a year-on-year growth of approximately 3.7%. BYHEALTH continues to lead the industry with a 9.3% market share.

We have observed that the primary driver of industry growth now comes from live-streaming e-commerce. Meanwhile, offline pharmacy sales of VDS products declined by around 20% year-on-year in 2024.

This year marks BYHEALTH’s 30th anniversary. Stand tall at 30, leading with strategic initiative. 

Our primary mission is to secure a high-quality, sustainable core business foundation guided by the proactive offense-centric strategies.  We believe proactive offense—not defence—delivers lasting stability.

Defence is neither in our DNA nor our strength. Expansion and offense are BYHEALTH’s choices. In 2025, we will fully upgrade our international market expansion strategy. When rowing against the current, failing to move forward means falling back quickly—and we have no room to retreat.

The struggle for traffic, the race to the bottom on price and quality—this cutthroat competition will ultimately backfire, harming both consumers and the industry.

A phrase I often repeat is: “Business is about continuous value creation.”

First, consumers must benefit. Then, all players in the value chain—brands, channels, suppliers, and communities—must also benefit. A business that consistently creates value for all stakeholders is the only kind that can sustain itself. 

We must return to the essence of business value creation and uphold the first principles of business. A company that strays from these essentials becomes a "hot potato" that will not last long.

Under the dual pressure of medical insurance policies and declining purchasing power, retail pharmacies are undergoing significant changes. BYHEALTH must place consumer interests at the core and rebuild a new value chain and business model for the VDS industry in pharmacies channel.

Leading with strategic initiative in 2025 must also focus on eliminating unnecessary work and cutting budgets that do not contribute to product value, user value, or operational value. As a company still in its growth phase, we must avoid turning "operations" into "management," which can lead to premature stagnation and the risks of organizational complacency.

The best defence is a good offense. 2025 will be a year of balancing offense and defence—yet always offense.

We will invest boldly in high-quality initiatives while swiftly eliminating low-value, inefficient, and energy-draining efforts.

In 2024, BYHEALTH, in collaboration with the Shanghai Institute of Nutrition and Health, Chinese Academy of Sciences(CAS), and the Center for Excellence in Molecular Cell Science, CAS, achieved a pioneering breakthrough in their research on a “Homeostasis-Based Health evalsuation System.” The findings were published in the prestigious international journal National Science Review. The research represents a global first in achieving multidimensional quantitative evalsuation of homeostasis, marking a significant advancement in the field. We have also secured dozens of new domestic and international patents, including "Bilberry Anti-Glycation" and others.

We must be even more hands-on, focused, and meticulous in our approach to product research and innovation—developing products that excite, inspire, and make us proud. Nurturing life with science. By staying true to our brand DNA—"Bringing the world’s highest-quality VDS to our family and friends"—we will create even greater value for consumer health.

If you’re not at the table of brand and product innovation, you’re on the menu of sales channels. 

Opportunity cost is currently BYHEALTH’s biggest cost and risk.

In 2025, we will continue to face enormous operational pressures and challenges.

"Shock therapy" is only a temporary measure, it is also a test of resilience and endurance.

Stand tall at 30, leading with strategic initiative, to vitalize, to thrive.

2025—Let BYHEALTH run! 

2025—Wishing peace, health, and prosperity to all!

Liang Yunchao

Chairman of BYHEALTH

March 21st, 2025