Byhealth (300146) Q2 2024 earnings summary

Executive summary

• Operating income for H1 2024 was RMB 4.61 billion, down 17.56% year-over-year; net profit attributable to shareholders was RMB 891 million, down 42.34% year-over-year.

• Main brands and channels all saw double-digit revenue declines; BYHEALTH brand revenue fell 19.77%, HighFlex down 16.81%, and lifespace domestic revenue down 24.79%.

• The company is focusing on improving business quality, optimizing strategy, and expense investment, and upgrading core products in H2 2024.

• Emphasis on scientific nutrition, R&D, and digital transformation to drive future growth.

Financial highlights

• Operating income: RMB 4,613 million, down 17.56% year-over-year.

• Net profit attributable to shareholders: RMB 891 million, down 42.34% year-over-year.

• Net cash flow from operating activities: RMB 294 million, down 71.69% year-over-year.

• Basic and diluted EPS: RMB 0.52, down 42.86% year-over-year.

• Gross margin for main business: 69.16%, down 1.53 percentage points year-over-year.

Outlook and guidance

• The company will focus on business quality improvement, strategic optimization, and product iteration in H2 2024.

• Short-term uncertainty and pressure expected due to product replacement and business adjustments.

• Continued investment in R&D, digitalization, and brand building to support long-term growth.