An Yuting, CEO of health care
“No price war”
According to the half yearly report of Jianhe in 2020, the company’s revenue reached 5.167 billion yuan, an increase of 2.6% year-on-year, and the adjusted net profit increased by 8.9% to 658 million yuan. Among them, China’s market revenue achieved a year-on-year growth of 12.8% to 4.269 billion yuan, accounting for 82.6% of the group’s total revenue.
Let’s start with the infant formula business. “Our share was relatively stable in the first half of the year, and the performance of different channels was different.” In the first half of the year, the share of Jianhe infant milk powder in e-commerce channels has increased to 2.8%, while in its main sales channel, Jianhe ranks fourth in the mainland market with a share of 6.9%. “In the past 12 months, our online market share has been increasing, which shows that the increase of our online resources can help increase the market share.” She said.
It is worth noting that at the meeting, an Yuting also responded to the problem of how to deal with the rise of local milk powder brands. “In fact, the competition of infant milk powder has been very fierce, especially in the high-end and ultra-high-end aspects. But [the market] is still growing. ” According to an Yuting, the health care association pays special attention to opportunities in the super high-end market.
Swisse new opportunities
As for the adult nutrition and care products business (ANC), another major business segment of Jianhe, the Chinese market has become the “growth engine”. According to the financial report, in the first half of the year, Jianhe’s ANC revenue increased by 27.9% year-on-year, and Swisse’s Chinese market revenue accounted for 56.5% of its ANC business. At present, Swisse has launched seven “blue hat” products in China.
an Yuting said that, as in the first quarter, the main challenge facing ANC business (Note: mainly Swisse brand) is the decline of ANZ purchasing agent activities. She predicted that in the second half of the year, Australia and New Zealand market’s purchasing activities in China will be at a relatively low level. In this regard, Jianhe will seize the opportunity for Chinese consumers to purchase Swisse through online channels, and expand domestic offline channels. At the same time, Jianhe also found a new opportunity for Swisse: to tap more demand in the ANZ market. “We can see that the demand in the Australian market is actually very stable. The revenue growth of retail channels in Australia has reached 40%, and the growth of e-commerce channels has increased by 400%, indicating that Australian consumers have also continued to shift to the online market.” “In the future, we hope to continue to increase demand in the ANZ market while maintaining the activities of purchasing agents in China,” she said According to Jianhe financial report, in order to promote the online and offline expansion of ANZ market, the company not only integrates all channels, but also introduces the first nutrition series swissenutra + with exclusive pharmacy channel. In the first half of the year, Swisse also entered the Indian and Malaysian markets through Amazon and more than 10 other major e-commerce channels.
Summing up the first half of the year, an Yuting concluded that “opportunities and challenges coexist”. “We are facing two major challenges, including the fact that offline passenger flow did not fully recover in the second quarter, especially the infant formula business, which affected the growth of our infant formula income in China. In addition, Australia also faces pressure on purchasing agents. ” An Yuting said. Jianhe believes that while facing the challenges, it is also important to seize new opportunities in the market. “In the first half of 2020, we still achieved very healthy revenue and adjusted net profit growth,” Luo Fei said at the meeting. Although this is not a result of high growth, we still see many opportunities in the future. “
A kind of