On the evening of February 20, Tomson Beijian (300146) released its 2023 performance report, and the company achieved a total operating income of 94 in 20230.7 billion yuan, a year-on-year increase of 1966%；Net profit 174.6 billion yuan, a year-on-year increase of 2600%；Basic earnings per share was 103 yuan.
As for the reasons for the growth of performance, Tomson Beijian said that 2023 is the first year of the new cycle of the VDS (dietary supplement) industry, and the company will further deepen management and improve the quality of operation in accordance with the strategic direction of multi-brand large-scale single products, all categories, and all channels. At the same time, benefiting from the growth of market demand for multiple categories of products brought about by the improvement of national health awareness, among which protein powder, vitamin C, Life-space probiotics and other products performed well in the first three quarters of 2023, and the company's revenue achieved rapid growth in 2023.
Among them, the revenue in the fourth quarter of 2023 decreased slightly compared with the same period last year due to the strong consumer demand for immunity-enhancing products in the fourth quarter of 2022 and the high revenue base. In addition, due to the large investment in brand building and the highest single-quarter sales expense ratio in the whole year, Tomson By-Health expects the performance in the fourth quarter of 2023 to decline compared with the same period last year.
Founded in 1995, By-Health has systematically introduced dietary nutritional supplements (VDS) into China's non-direct sales field in 2002, and its main product varieties are immunity enhancement (such as protein powder), women's health (such as collagen), bone health (such as glucosamine chondroitin calcium tablets), vitamins (such as multivitamins), etc. On December 15, 2010, By-Health was listed on the Growth Enterprise Market of the Shenzhen Stock Exchange.
From the perspective of sales channels, Tomson Beijian started through non-direct sales channels such as pharmacies and shopping malls, and the number of sales terminals has exceeded 30,000 in 2012, and the market share of offline channels is leading. In 2015, Tomson By-Health entered the online market, and in 2022, the proportion of domestic online revenue has reached 39%. According to the latest investor survey records of Tomson Beijian in January, from the perspective of the revenue proportion of Tomson Beijian's online platforms, Alibaba and JD.com together account for more than 60%, and Douyin's revenue accounts for about 20%.
From the perspective of core e-commerce channels, Tomson Beijian said in a recent investor survey that Douyin has surpassed JD.com to become the second largest e-commerce platform in the dietary supplement industry, and its overall growth rate in 2023 is also the fastest. "Compared with traditional container e-commerce, Douyin's live e-commerce format is a good educational field, and the company can cultivate consumers by outputting high-quality content. In 2023, the company's growth rate in the Douyin channel will exceed 100%. However, the increase in the proportion of revenue from online channels has also led to an increase in the sales expense ratio of Tomson Beijian. In 2022, Tomson's sales expenses increased by 27% year-on-year87% to 316.9 billion yuan, and the annual sales expense ratio was 4031%。In the first half of 2023, Tomson's sales expense ratio was 3267%, a year-on-year increase of 07 percentage points. Tomson Beijian said that with the gradual improvement of the company's operating capacity, there is still room for optimization of sales expenses, and it is hoped that the sales expense rate can transition to 35%-40% in the next 3-5 years.
In a recent survey with investors, Tomson Beijian also said that the company's category layout in recent years has been two-legged, one is to continue to invest in basic nutrition categories, such as vitamins, calcium, protein powder, etc. The second is to lay out the subdivision track with greater growth potential in the future through the large-scale single product model, such as the launch of the bone and joint nutrition professional brand "Jianliduo", the eye nutrition professional brand "Jianshijia", the liver nutrition professional brand "Jian'anshi", etc., and the acquisition of the Australian probiotic brand "Life-space", which is in-depth in the subdivision track.
Founder** research report pointed out that in the medium and long term, the product strategy of Tomson Beijian's multi-brand is expected to gradually take effect, and Jianli is mostly a mature large single product, and it is expected that the revenue growth rate of this product is expected to turn positive in 2023; Life-Space benefited from the rapid development of the probiotics industry and the increase in market share, and its revenue continued to grow rapidly. The prototype of Jianshijia's large single product has appeared, and it is expected to increase rapidly through online and offline channels; Jian Ganshi and Shu Baining are on a high-growth track and are expected to gradually cultivate into the next big single product.
This year, Tomson Beijian's latest ** incentive plan landed in January, and the company released the 2024 restricted ** incentive plan (draft) on January 2, proposing to grant 16.8 million restricted ** shares to 36 people, with a grant of 860 yuan shares, of which 3 million shares were granted to director and general manager Lin Zhicheng, 1 million shares were granted to director Tang Hui, and other shares were granted to 34 core technology (business) backbones. The average number of shares granted to the incentive plan is 4670,000 shares, significantly higher than 970,000 shares.
After the release of the above-mentioned equity incentive plan, some investors said that the standards set by the performance appraisal indicators at the company level were low. Tomson Beijian responded that the company chose operating income as the company-level performance assessment indicator, based on operating income, which is an important indicator to measure the company's operating conditions and market share, and the trend of business expansion. The performance appraisal indicators set at the individual level include multiple dimensions such as revenue, profit and market share of the business department where the incentive target belongs.
For R&D personnel, By-Health said that the basic salary of core R&D personnel has been increased, and several special incentives have been set up on this basis to ensure that R&D investment is more focused on product innovation, iteration and technological innovation, and is not affected by short-term performance fluctuations.