2017 semiannual report｜NSP aiming at China  A superfast growth in digest & weight management
On August 9, Nature's Sunshine Product, Inc. (NASDAQ: NATR, hereinafter referred to as NSP) announced net sales revenue of $164 million,a year-on-year drop by 4.27%; net profit of $1.973 million,down 57.45% year on year in the first half of 2017, according to 2017 second quarter report.
 
The sales revenue created in China and new markets reached $8.431 million, an increase of 32.19% year on year, accounting for 10% of total sales revenue.
 
The sales of medicines for digestion is surging in China and new markets, achieving $3.455 million in the first half of 2017, up 127%, followed by the sales of weight management products, reaching $1.071 million in the first half of the year, an increase of 107% year on year.

Direct selling officially set out in China
Founded in 1972and listed on the Nasdaq in 1978, NSP is a long-established direct selling company, but it officially expanded in China as late as in 2014 after receiving a huge investment from Fosun Pharma in the same year, compared with the other three listed direct selling companies which have expanded their Chinese market long ago.
Nu Skin and Herbalife were licensed for direct selling as early as in 2006 and 2007 respectively, and USANA, which entered China later, was licensed in 2010 helped by the subsidiary BabyCare. Nature's Sunshine(Shanghai)Product Co., Ltd. received its direct selling license in May 2017, released by the official website of the Ministry of Commerce.
By August 10, 2017, Nature's Sunshine Product has been recorded for 1 branch, 9 service outlets (distributed in all areas of Shanghai, in self-run, franchised and authorized way), 1 category and 6 types of direct sales products(all cosmetics ).
 

Company scale of Nature's Sunshine(Shanghai)Product Co., Ltd.
Direct selling area-branch:1  Click for details
Direct selling area-service outlets:9  Click for details
Direct selling product-1 Category 6 Types  Click for details
Direct selling trainer-6 (6 registered, 0 canceled) Click for details
Nature's Sunshine(Shanghai)Product Co., Ltd. direct selling products information list
Product name	Product type	Manufacturer	Record-filing date
1 Nature’s Sunshine aloe vera skin gel	cosmetics	Nature's Sunshine Product Co., Ltd.
2 Nature’s Sunshine compound herbal gel	cosmetics	Nature's Sunshine Product Co., Ltd.
3 Nature’s Sunshine jojoba oil	cosmetics	Nature's Sunshine Product Co., Ltd.
4 Nature’s Sunshine base oil for massage	cosmetics	Nature's Sunshine Product Co., Ltd.
5 Nature’s Sunshine tea tree oil	cosmetics	Nature's Sunshine Product Co., Ltd.
6 Nature’s Sunshine holly oil	cosmetics	Nature's Sunshine Product Co., Ltd.
10	Page 1		1 to 6 are shown, 6 records altogether

 
China's direct selling business, a key to profit growth
Up to now, 4 listed enterprises with direct selling licenses- Herbalife, USANA,NuSkin and Nature’s Sunshine Product- have all disclosed 2017 interim results.
 
 
 

	Revenue	Revenue Increase		Net Profit	Net Profit Increase
Herbalife	¥2.249 billion	-3%		¥223 million	206%
Nu Skin	¥1.049 billion	-2%		¥69.53 million	45%
USANA	¥512 million	3%		¥44.62 million	-7%
NSP	¥164 million	4%		¥1.97 million	-57%
Q2 Revenue Competition in Chinese Zone
	Revenue	Growth	statistical zone
Herbalife	¥458 million	5%	China
Nu Skin	¥322 million	12%	Mainland China
USANA	¥137 million	8%	Greater China
NSP	¥4.9 million	-8%	China and New Markets

 
It’s not difficult to find that, according to the data, the performance of enterprises in Chinese zone have all maintained a basic growth, with highest growth rate in Nu Skin by 12%, in contrast to the overall performances almost in recession. NSP's decline in second quarter was mainly due to the increased investment in mainland China and Hong Kong. By reviewing the overall situation in the first half of the year, the performances in China and new markets rose 32%.