People's livelihood and health: revenue and net profit will increase in 2023, and "national nutrition experts" will make a big "dimension"

On the evening of April 23, Minsheng Health (301507.SZ) released its 2023 annual report, during the reporting period, the company achieved a total operating income of 582 million yuan, a year-on-year increase of 6.33%, a net profit attributable to shareholders of listed companies of 85.6338 million yuan, a year-on-year increase of 8.38%, and a net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses of 79.187 million yuan, a year-on-year increase of 12.61%.

Minsheng Health has always focused on the field of essential vitamin and mineral supplements, focusing on brands, products and technologies, continuously improving its core competitiveness, and providing consumers with high-quality and effective health products.

In 2023, Minsheng Health will continue to take vitamin and mineral supplement products as the core of its business development, optimize its product structure, strengthen channel synergy, enhance market influence, and achieve steady growth in operating performance based on its technology and brand advantages.

Looking forward to 2024, in the market environment of expanding the scale of the industry and upgrading the concept of healthy consumption, the company will actively meet new opportunities and challenges, strengthen R&D investment, explore product innovation, channel innovation and model innovation, boost the company's overall intelligent upgrading, and empower the company's market competitiveness with digitalization.

Focus on the development of the main business and consolidate brand building

Minsheng Health focuses on the field of vitamin and mineral supplements, and is a high-tech enterprise integrating R&D, production and sales of vitamin and mineral over-the-counter drugs and health foods. The company's main product, 21 Gold Vita ® Multivitamin Tablets (21), was developed and listed in 1985, creating a precedent in the domestic vitamin mining industry.

In recent years, taking the advantageous areas of Weikuang as the starting point, Minsheng Health has vigorously improved product research and development, in-depth research and insight into the nutritional needs of different groups, different ages and different scenarios, and made full use of nearly 40 years of accumulated R&D experience, production technology advantages and quality control advantages of Weikuang to meet the diverse vitamin and mineral supplement needs of people of different ages, continue to enrich product categories, and create a diversified group of vitamins and minerals OTC products and health food products.

In 2023, the company will achieve a total operating income of 582 million yuan, of which the vitamin and mineral supplement series will achieve a revenue of 570 million yuan, a year-on-year increase of 7.39%. Among them, multi-vitamin element tablets (21) achieved revenue of 476 million, a year-on-year increase of 8.47%, multivitamin and mineral tablets health food and food achieved revenue of 77 million, a year-on-year increase of 19.71%, and other vitamin mineral OTC products achieved revenue of 16 million.

It is worth mentioning that since the R&D and listing of 21 Gold Vita ® Multivitamin Tablets (21), Minsheng Health has always attached great importance to brand building, committed to enhancing the core value and influence of the main brand "21 Gold Vita", always adhered to the brand promotion close to life, consolidated and strengthened the national image of the main brand "21 Gold Vita", participated in people's life with the theme of "National Good Nutrition", and continued to export brand value with the brand theme of "National Nutrition, Great Achievements in 'Dimension'".

Through continuous high-quality operation, "21 Gold Vita" has developed into a leading brand in the field of domestic vitamin minerals, and its brand awareness, reputation and influence have been continuously improved: in 2020, it was listed on the "Healthy China Brand List" Xipu Gold Award Drug List, in 2021, it was selected into the "2020-2021 Health Industry Brand Development Index, Top Brand", in 2022, it was listed in the "2022 Health Industry Brand List" Xipu Gold Award Drug List, and in 2023, it was listed in the "2023· CIPU Club Brand List Gold List", selected into the list of "TopBrand 2023 Top 500 Chinese Brands".

At the same time, Minsheng Health is also giving the "21 Gold Vita" brand a new historical mission, transforming from a bottle of 21 Gold Vita Multivitamin Tablets to the "21 Gold Vita Mine Family", and a series of products that subdivide people, ages, and functional scenarios have been launched, such as the sub-brand "21 Gold Vita +" focusing on adult nutrition, the sub-brand "Xiaojin Vita" focusing on children's nutrition, and the sub-brand "Puruibao" focusing on intestinal health 21 Gold Vita is transforming from a product as a brand to a more in-depth nutrition and health brand with more product matrix.

In terms of channel construction, in order to conform to the consumption concept and consumption habits of consumer groups in the new era, Minsheng Health has increased the layout of online sales channels and opened self-operated stores on well-known e-commerce platforms such as Tmall, JD.com, Pinduoduo, Douyin, Kuaishou, etc.;

Strengthen R&D investment and actively explore diversified tracks

Minsheng Health has always attached great importance to R&D and innovation. After years of deep cultivation in the industry, the company has formed a complete set of core technology systems covering product formula system, production process system, quality control and inspection system, such as multi-nutrient synergy technology, micronutrient mixing uniformity control method, vitamin and mineral tablet product stability control technology, and trace vitamin detection method, and continues to improve, optimize and iterate on this basis.

In 2023, Minsheng Health will continue to make progress in all dimensions such as new product research and development, production, talent organization, channel layout, brand building and internal control and governance to further enhance the company's competitiveness. In terms of new product research and development, the company has established a multi-department collaborative research and development mechanism to vigorously promote the research and development of new products through research and development innovation.

In 2023, Minsheng Health will invest 29.5565 million yuan in R&D, accounting for 5.08% of the company's operating income, add 3 invention patents, obtain 14 approvals for record-based health foods, 1 approved for registration-based health foods, and complete 10 functional food developments.

In addition, the R&D team has new projects in the over-the-counter drugs, health foods, probiotics and other sectors. In 2023, 3 OTC drug registration applications will be completed, 1 drug supplement will be completed, 13 new health foods will be approved, and 9 functional foods will be newly approved.

As of December 31, 2023, Minsheng Health and its subsidiaries have 61 authorized patents, 9 drug registration approvals, and 51 health food approvals. With the orderly progress of new product research and development, the research and development results will bring strong support to the company's continuous improvement of performance.

Minsheng Health said that in the future, it will track changes in product demand and consumer demand through close market research and customer maintenance, maintain market sensitivity, and effectively improve the market recognition of new products. On the basis of continuous investment in the research in the field of maintenance and probiotics, the company will explore new tracks such as hair growth, intestinal health, sleep health, and Chinese patent medicine supplements, and seek to lay out new product pipelines.

It is worth noting that in 2023, the company's fundraising project has entered the pile foundation construction stage. The project design adopts the international leading design concept, integrates lean, automation and informatization, and combines WMS/MES/SCADA and other factory digital solutions to help the company build an intelligent benchmark factory.

According to the plan, in 2024, the above-mentioned fund-raising projects will enter the full construction stage. It can be expected that with the successful completion of the fundraising project, the sustainable development of people's livelihood and health will be more effectively guaranteed.