In 2017, many health-products companies invested more in R&D, among which, three companies stand out:

No. 1 H&H
In 2017, H&H (1112.hk) had the highest R&D investment in addition to its top revenue level in the industry. H&H’s R&D investment in 2017 was nearly 99 million yuan, an increase of 27.72 percent year-on-year. H&H says that it upholds the business model of “high-end and high quality, scientific verification, desirable, and excellence (PPA),” and boosts revenue levels with high R&D investment.

No. 2 By-Health

In 2017, By-Health (300146) invested about RMB 84 million in R&D, with a year-on-year decrease of 18.44 percent. R&D input accounted for 2.68 percent of operating revenue, R&D personnel accounted for 10.51 percent, and capitalized R&D expenditures accounted for 0.79 percent of net profits of the year. All above figures showed some decrease from year-on-year perspective.

However, in general, in 2017 By-Health focused on its precision nutrition research and development strategy, further strengthened its cooperation with domestic and foreign authoritative scientific research institutes and key raw material suppliers for “collaborative innovation” in R&D cooperation. The company still attaches great importance to R&D and has achieved major breakthroughs.

No. 3 Xiwang Food

In 2017, Xiwang Food (000639) invested RMB 83 million in R&D, with a year-on-year increase of 0.52 percent. R&D input accounted for 1.47 percent of operating revenue, and 118 R&D personnel, accounted for 5.24 percent. Xiwang Food says that through strong research and development capabilities, advanced R&D labs and scientific research personnel, it has continuously developed health and nutrition products that meet national standards and consumer needs, thereby maintaining its own innovation capabilities and competitiveness.

A briefing on the growth of companies’ R&D input

Among the enterprises with health product as the main business, Sinolife United ranks first with a 283 percent growth rate of R&D investment, followed by Life Shine and SUNOTA, with 37 percent and 30 percent respectively.

Of companies with health-product business as a sideline, Kingworld and Angel Yeast showed the largest increase in R&D input with a growth rate of 64 percent and 53 percent respectively.

Enterprises with sci-tech gene, scientific wisdom and scientific research strength will achieve long-term development. Almost all the nutrition and health product enterprises that valued R&D investment did well in 2017. Technology-driven revenue helps upgrade the entire industry.

Following the pace of the industry pioneers, China's nutritional and health food industry is striding into the era of “China’s nutrition and health food industry 2.0—Technology is King” with high profit and strong technology.

Attached table:

*SIRIO is a pre-IPO enterprise.