NF International Holdings Limited, a leading Chinese natural health food company, has suffered significant impacts from the COVID-19 pandemic in the first half of 2020, with a 33.5% decline in revenue to RMB 6.1 billion and a net loss of RMB 523 million. However, the company's operations have shown signs of recovery since the restrictions were lifted in April 2020. NF's GM is expected to normalize in the second half of 2020 and maintain a high level of over 60%. NF has adopted a market segmentation strategy to avoid sales cannibalization, with offline channels accounting for 67% of total revenue. NF's online sales have increased by 8.7% to RMB 1.99 billion in the first half of 2020, accounting for 32.6% of total revenue, with e-commerce platform sales growing by 23% to RMB 1.66 billion. NF has also launched new products and a new factory is expected to be operational in the third quarter of 2021.
