Since the beginning of this year, the consumer environment in the VDS industry in Guangzhou has been continuously changing. Influenced by multiple factors such as intensified market competition and corporate operational adjustments, the leading company, by-health co., ltd. (300146.SZ), has been under pressure. In the first three quarters of this year, by-health co., ltd. achieved revenue of 5.734 billion yuan and a net income attributable to the parent company of 0.869 billion yuan, both decreasing compared to the same period last year.

In terms of offline channels, according to data from Zhongkang CMH, from January to August this year, the national retail pharmacy VDS sales declined by 20%, significantly impacting by-health co., ltd. In terms of online channels, the influx of cross-border brands, white labels, and others intensifying industry competition has brought significant pressure to by-health co., ltd.'s e-commerce sales. Additionally, in the third quarter, the iterative upgrade of by-health co., ltd.'s two core products, protein powder and Jule Do, also had a certain impact on performance.

During the reporting period, by-health co., ltd. actively faced challenges, actively adjusting through multiple measures to improve operational quality. On the brand side, focusing on core brands, actively adjusting some brand operation strategies and resource allocation; on the product side, continuously implementing more product upgrade innovations to enhance product strength; on the channel side, reorganizing the value chain of the full-channel, proposing refined operational measures tailored to different channels.

Since the beginning of this year, by-health co., ltd. has been promoting the iterative upgrade of its two core products, protein powder and Jule Do, improving product quality in terms of content, formula, and strengthening the differentiation between online and offline products. The alternation of old and new products may affect short-term performance realization, but it is advantageous for the company to enhance core competitiveness in the long run. Meanwhile, during the reporting period, other products under by-health co., ltd. have also been upgraded, clearly focusing on innovative products to drive category growth.

In October of this year, By-Health Co., Ltd. held a national dealers conference, launching the "Hundred-Day Battle" with protein powder and Jiannengduo as its core products, gathering core resources to promote new product expansion. At the meeting, By-Health Co., Ltd. proposed a series of dealer support plans, strengthening terminal resource investment, promoting deep distribution, channel sinking, innovative sales initiatives, and other measures.

On e-commerce platforms, low-price competition is becoming intense. By-Health Co., Ltd. chooses to respond with strong technology products and a strong brand, further enhancing the profitability of the e-commerce channel by strengthening the differentiation management of online and offline product shelves, optimizing investment models, and other methods. According to third-party statistics, from January to September this year, By-Health Co., Ltd.'s entire brand's market share in the e-commerce market still ranks first among VDS companies.

Facing changes in the VDS industry, By-Health Co., Ltd. has sought breakthroughs in product upgrades, channel optimization, and other aspects. With the gradual implementation of operational adjustment measures, By-Health Co., Ltd.'s performance is expected to be restored.

Compared to foreign markets, the penetration rate and per capita consumption level of the VDS market in China still have considerable room for development. The increasing trend of aging population also provides development opportunities for VDS companies. Following the release of By-Health Co., Ltd.'s third-quarter report for 2024, Everbright Securities and Guosheng Securities maintained their 'shareholding' rating on By-Health Co., Ltd. in their research reports based on the company's competitiveness and industry growth prospects.