Dear Shareholders of BYHEALTH,
(The following is taken from the address delivered by Mr. Liang Yunchao, Chairman, at the company’s 30th Anniversary Celebration held in the Tengger Desert on October 28, 2025.)
To mark BYHEALTH’s 30th founding anniversary, we specially chose here to hold the 11th "极" Extreme Challenge, a two-day, one-night crossing the Tengger Desert, and celebrated our 30th anniversary with an evening gala under a starlit sky.
At this moment, what comes to my mind first are those two giant inscriptions I saw years ago when crossing the Taklamakan Desert with the founding team: " Only desolate deserts, never desolate life."
Over two decades of dedication, BYHEALTH has played a part in defining the Vitamin & Dietary Supplements (VDS) industry in China, and striven to drive its robust development. Having survived in the cracks and grown with resilience, BYHEALTH has flourished in tandem with the expansion of China’s VDS market.
At the beginning of 2023, the theme of my letter to shareholders was " Opens the New Cycle of Vitamins and Dietary Supplements ", in which I noted that the new VDS cycle would certainly bring high-growth opportunities for more categories and brands.
Unfortunately, BYHEALTH missed the very start of the new cycle I had identified as well as the best window for adjustment in 2023.
Now in our 30th year, we are facing unprecedented challenges from both internal and external headwinds.
During the past two years, we have suffered an abrupt halt and a significant pullback just as we approached the RMB 10 billion revenue threshold. This was driven by external factors, such as sustained sharp declines in the entire pharmaceutical-channel VDS category amid healthcare policies and weakened consumer purchasing power, as well as internal factors including the absence of key incremental and high-momentum channels in the new cross-border e-commerce and Douyin cycle.
Internal factors played the dominant role.
A sharp decline is more of a wake-up call than a slow boiling frog.
The louder the applause, the greater the risks often tend to be. Confronting and resolving crises and challenges is precisely what breeds new opportunities.
After the sharp decline in 2024 and stabilization in 2025, we choose to launch a full-scale offensive in 2026 with a re-entrepreneurial mindset.
First, from 2026 to 2028, we will hit new revenue peaks within three years.
The pharmacy retail sector will continue to face shocks and pressures, yet crisis and opportunity always coexist. We will swiftly roll out our end-to-end DDI digital infrastructure for pharmacies, pilot new commercial delivery models, as well as the restructuring of new product value chains. We will also scale up instant retail and co-creation initiatives with chain store members. This will deliver greater incremental value to consumers and partners, ultimately enabling the transformation and upgrade of our new pharmacy business model.
We must blaze a new path for VDS in China’s pharmacies. This is a cause that matters not only to BYHEALTH, but to the entire VDS industry.
Against strong headwinds, starting in 2026, we are determined to significantly outpace the overall growth of the VDS category—even within the pharmacy channel.
Beyond the pharmacy channel, our businesses across traditional e-commerce, interest-based e-commerce, cross-border, supermarkets, and international markets will all return to rapid growth, substantially outpacing industry averages. Of these, our core brand will achieve high growth in 2026 across the cross-border and Douyin channels—where we previously lacked clear strategic focus.
Our goal for 2026–2028 is to outperform the growth rates of major industries/categories across all channels.
Second, focus on major innovations in commercially viable products featuring significant efficacy, new functions and novel dosage forms.
2025 represented a landmark year for new product launches in BYHEALTH’s history, with new products such as Multi-vitamin & Mineral Dual Tabs accounting for nearly 20% of sales, and with our target audience and brand equity being optimized.
Meanwhile, our first independently developed OTC product, HighFlex Glucosamine Sulfate, and first self-developed FSMP(Food for Special Medical Purposes), Meiyile full-nutrition formula, were both launched in 2025.
Nurturing Life with Science.
We are advancing our transformation strategy: strengthening our brand and bolstering technological capabilities. We will act with dedication, stay hands-on, and devote greater resources to product R&D and innovation. Our aim is to create more inspiring, exciting products that we can all take pride in.
Let science-based nutrition take the lead in the AI-driven wave of technological democratization.
Let every one of us find deeper purpose in what we do.
And let this be our mission and our pride.
Third, however difficult, ensure brand investment under the principles of long-termism and soundness, even at the expense of short-term profitability.
For consumer goods, brand constitutes the ultimate core competitiveness.
With strategic consumer segments penetration comprehensively falling behind, how can there be a future?
With total social media investment falling behind across the board, how can there be a future?
The Sword of Damocles reminds us: never compromise the future for the present.
Fourth, accelerate global market expansion and achieve sustained high-speed growth.
Fifth, establish a sustainable platform for innovation and entrepreneurship, fostering more new projects to act as the company’s new growth engines.
Sixth, prioritize robust scenarios and high substitution potential, establish BYHEALTH’s AI Agent matrix.
Seventh, streamline personnel, funds, and initiatives that fail to create value resolutely and continuously, while eliminating non-value-adding middle layers and redundant management. At this 30-year milestone, as we look to the future, rethink and rekindle the fiery entrepreneurial spirit of our youth.
Looking ahead to the next five years from 2026 to 2030, China’s VDS industry is expected to maintain high single-digit annual growth.
And opportunity cost is by far the greatest cost for BYHEALTH today.
How will BYHEALTH shift from reactive to proactive?
Fighting against algorithms will always keep us on the defensive, brand and product innovation is the only way to break free from their grip.
If you’re not at the table of brand and product innovation, you’re on the menu of sales channels.
A decade ago, two decades ago, we could confidently say that BYHEALTH had been delivering unique value to consumers in terms of their health, as well as to the industry and our partners.
As we look ahead from this 30th anniversary milestone, we must ask ourselves: What unique, irreplaceable value can BYHEALTH continue to create for consumers’ health? And for the industry and our partners?
Ultimately, BYHEALTH’s value depends on how much incremental value we can bring to consumer health.
"True equality means equal opportunity, not equal outcome."
Stand Tall at 30,
Hone Our Edge, Accelerate Our Advance;
Stand Tall at 30,
Re-entrepreneurship in Motion, Forge Ahead with Action!
Liang Yunchao
Chairman of BYHEALTH
March 20, 2026
