Summary of the Conference Call for Lao Bai Xing Pharmacy Company Overview - Lao Bai Xing Pharmacy has developed into a leading player in the pharmaceutical retail industry over the past 20 years, with over 14,000 stores across 18 provinces and 150 cities in China [2][4] - The company has more than 90 million members and over 50,000 employees [2] - In the previous year, the company achieved an annual revenue of 22.437 billion yuan and total assets of 21.372 billion yuan [2] - From 2015 to 2023, the compound annual growth rate (CAGR) for store numbers was 31.89%, for revenue was 22.0%, and for net profit attributable to shareholders was 18.4% [2] Financial Performance - The gross profit margin has maintained a steady growth of over 30%, with a significant increase to 35.2% in Q1 2024, up by 2.2 percentage points year-on-year [3] - The company plans to distribute dividends of 385 million yuan in 2023, with an upward trend in dividends and yield [3] - The return on equity (ROE) reached 13.91% in 2023, indicating stable financial performance [3] Industry Insights - The pharmaceutical retail industry is experiencing significant changes due to policies promoting prescription drug separation, which began in 2023 [4][5] - The trend of large-scale procurement is beneficial for leading pharmacies, allowing them to leverage their scale for better pricing [6] - The dual-channel model (DTP) allows pharmacies to enjoy the same medical insurance benefits as hospitals, facilitating prescription outflow [7] - The market share of pharmaceutical retail in China increased from 22% in 2017 to approximately 30% in 2023, indicating substantial growth potential compared to developed countries [8] Market Concentration - The concentration of the industry is increasing, with the market share of the top ten players rising from 13.56% in 2015 to 30.91% in 2022 [9] - The aging population and rising chronic disease rates are driving growth in the pharmaceutical retail market, with a projected CAGR of 5.9% from 2022 to 2030 [9] Competitive Advantages - Lao Bai Xing Pharmacy has a broad coverage, with a market presence in 72% of the total pharmaceutical retail market in China [13] - The company has a strong franchise model, with a CAGR of 50.19% in franchise store numbers since 2018 [15] - Digitalization is a key competitive advantage, enhancing operational efficiency and employee performance [24] - The company has implemented a "Torch Project" to optimize product structure and improve gross margins without changing retail prices [29][30] Future Strategies - The company aims to build a technology-driven health service platform, focusing on digital empowerment, capturing the prescription drug market, and expanding into rural areas [42][43] - Plans to increase store numbers by 4,000 in the current year, maintaining a growth rate of around 25% for new stores [22] - The company is also focusing on enhancing its own brand and improving customer value through better product quality and pricing strategies [46] Additional Insights - The company has established a comprehensive health management service across over 10,000 stores, providing health self-testing services [11] - The integration of online and offline sales channels has shown promising growth, with a 38% increase in online sales revenue in 2023 [28] - The company is actively involved in mergers and acquisitions, utilizing a unique "Spark Acquisition" model to integrate quality chain pharmacies [20][21] This summary encapsulates the key points discussed during the conference call, highlighting the company's performance, industry dynamics, competitive advantages, and future strategies.

Financial Performance - The company achieved strong financial performance with 2023 revenue reaching 22.437 billion yuan and total assets of 21.372 billion yuan. From 2015 to 2023, the compound annual growth rate (CAGR) of store numbers was 31.89%, revenue CAGR was 22.01%, and net profit attributable to shareholders CAGR was 18.4% [1][4] - The comprehensive gross margin remained above 30%, reaching 35.2% in Q1 2024, a year-on-year increase of 2.2 percentage points [1][4] Business Lines and Key Indicators - The implementation of outpatient coordination policies led to significant growth in sales and gross profit. For comparable stores over two years, gross profit growth accelerated by 16.5 percentage points, and sales increased by 15.1% year-on-year in 2023 [2][13] Market Data and Key Indicators - The retail pharmaceutical market in China has seen an increase in concentration, with market share rising from 22% in 2017 to 30% in 2023. However, there is still significant room for improvement compared to the US, Japan, and the UK [1][5] - The aging population and rising chronic disease rates are expected to drive the retail pharmaceutical market's growth, with a projected CAGR of 5.9% from 2022 to 2030 [1][5] Company Strategy and Industry Competition - The company's future development strategy includes digital empowerment, capturing the prescription drug blue ocean, embracing new retail, entering rural markets, expanding health social spaces for the elderly, and strengthening its own brand [3][15] - The company has five competitive advantages: extensive coverage, market share, digitalization, gross margin, and operational optimization [7] Management's Comments on Operating Environment and Future Outlook - Management highlighted the positive trends in the industry, including prescription outflow and policies promoting drug separation, which are expected to significantly impact the future of retail pharmaceuticals [4][5] - The company plans to expand its store network by 4,000 new stores, maintaining a growth rate of around 25% [9] Other Important Information - The company has a stable shareholding structure, with the actual controllers holding a combined 27.89% stake. Major shareholders include well-known investment firms and sovereign wealth funds [1][4] - The company has implemented a digital strategy that has improved net profit by 137 million yuan in 2023, with a return on investment (ROI) of 3.77 [2][10] Q&A Session Summary Question: How has the company's financial performance been in recent years? - The company has shown excellent financial performance, with 2023 revenue at 22.437 billion yuan and total assets at 21.372 billion yuan. The CAGR for store numbers, revenue, and net profit attributable to shareholders from 2015 to 2023 were 31.89%, 22.01%, and 18.4% respectively [4] Question: What is the company's shareholding structure and major shareholders? - The actual controllers are Xie Zilong and Chen Xiulan, holding a combined 27.89%. The top ten shareholders include well-known investment firms and sovereign wealth funds [4] Question: What are the key trends in the industry and future development? - Key trends include prescription outflow, large-scale procurement benefiting leading pharmacies, and policies that enhance the competitive landscape. The market share of the top ten pharmacies has increased significantly [5] Question: What competitive advantages does the company have in the market? - The company has five major advantages: extensive coverage, market share, digitalization, gross margin, and operational optimization [7]

Investment Rating - The investment rating for the company is "Buy" [6][14]. Core Views - The company's performance shows steady growth, highlighting operational resilience with a revenue of 22.437 billion yuan in 2023, a year-on-year increase of 11.21%, and a net profit of 0.929 billion yuan, up 18.35% [3]. - The company is actively enhancing its refined management capabilities, which is expected to improve profitability, with a gross margin of 32.55% in 2023, an increase of 0.67 percentage points year-on-year [3]. - The company is pushing for the qualification of outpatient coordination, aiming to benefit from policy dividends, with 4,673 outpatient coordination stores established by Q1 2024 [3]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 22.437 billion yuan, with a net profit of 0.929 billion yuan, and a non-recurring net profit of 0.844 billion yuan, reflecting year-on-year growth rates of 11.21%, 18.35%, and 14.68% respectively [3]. - For Q1 2024, the revenue was 5.539 billion yuan, with a net profit of 0.321 billion yuan, and a non-recurring net profit of 0.311 billion yuan, showing year-on-year growth rates of 1.81%, 10.27%, and 10.35% respectively [3]. Business Segments - In 2023, the retail and franchise businesses generated revenues of 19.349 billion yuan and 2.931 billion yuan, with year-on-year growth of 9.96% and 19.62% respectively [3]. - In Q1 2024, the retail and franchise businesses reported revenues of 4.683 billion yuan and 0.819 billion yuan, with year-on-year growth of 2.18% and 0.24% respectively [3]. Profitability and Management - The gross margin for 2023 was 32.55%, benefiting from product mix adjustments and an increase in the proportion of unified procurement sales, which reached 68.40% [3]. - The company has implemented various cost-reduction measures and expects further profitability improvements with the Torch Project, achieving a gross margin of 35.20% and a net margin of 6.61% in Q1 2024 [3]. Future Outlook - The company has adjusted its profit forecasts for 2024 and 2025, expecting net profits of 1.118 billion yuan and 1.354 billion yuan, with corresponding EPS of 1.91 yuan and 2.32 yuan [4]. - The projected P/E ratios for 2024, 2025, and 2026 are 18, 15, and 12 respectively, indicating a favorable valuation outlook [4].

2023 年年度股东大会会议资料 老百姓大药房连锁股份有限公司 2023 年年度股东大会会议资料 股票代码：603883 二〇二四年五月 1 / 29 2023 年年度股东大会会议资料 目 录 一、会议须知 二、会议议程 三、会议议案 1、关于公司 2023 年年度报告及摘要的议案 2、关于公司 2023 年度董事会工作报告的议案 3、关于公司 2023 年度监事会工作报告的议案 4、关于公司 2023 年利润分配预案的议案 股东大会会议须知 5、关于公司续聘 2024 年会计师事务所的议案 6、关于公司及子公司 2024 年度申请银行综合授信额度及提供担 保的议案 7、关于公司 2023 年度董事、监事、高级管理人员报酬总额的议 案 8、关于公司预计 2024 年 1-6 月及 2024-2025 年度日常关联交易 的议案 9、关于公司部分董事津贴标准的议案 2 / 29 为维护全体股东的合法权益，确保股东大会的正常秩序和议事效率，保证大 会顺利进行，老百姓大药房连锁股份有限公司（以下简称"公司"）根据中国证 券监督管理委员会《上市公司股东大会规则（2022 年修订）》等文件的有关要求， 制定本须知。 20 ...

证券代码：603883 证券简称：老百姓 公告编号：2024-032 老百姓大药房连锁股份有限公司 关于召开 2023 年年度股东大会的通知 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 一、 召开会议的基本情况 股东大会召开日期：2024年6月13日 本次股东大会采用的网络投票系统：上海证券交易所股东大会网络投票 系统 (二) 股东大会召集人：董事会 (三) 投票方式：本次股东大会所采用的表决方式是现场投票和网络投票相结 合的方式 (四) 现场会议召开的日期、时间和地点 网络投票系统：上海证券交易所股东大会网络投票系统 网络投票起止时间：自 2024 年 6 月 13 日至 2024 年 6 月 13 日 采用上海证券交易所网络投票系统，通过交易系统投票平台的投票时间为股 东大会召开当日的交易时间段，即 9:15-9:25,9:30-11:30，13:00-15:00；通过 互联网投票平台的投票时间为股东大会召开当日的 9:15-15:00。 (六) 融资融券、转融通、约定购回业务账户和沪股通投资者的投票程 ...

证券代码：603883 证券简称：老百姓 公告编号：2024-033 老百姓大药房连锁股份有限公司 关于控股股东股票质押延期购回的公告 注：本公告中若出现总数与各分项数值之和尾数不符的情况，均为四舍五入原因造成。 被质押股份不存在被用作重大资产重组业绩补偿等事项的担保或其他保障用途情 况。医药集团将根据后续质押情况及时履行告知义务，公司将按照相关法律法规要求 及时履行披露义务。 二、控股股东及一致行动人累计质押情况 截至本公告披露日，医药集团及一致行动人累计质押股份情况如下： 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、 误导性陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承 担法律责任。 重要内容提示： ●老百姓大药房连锁股份有限公司（以下简称"公司"）控股股东老百姓医药集 团有限公司（以下简称"医药集团"）持有公司股份数量为 152,741,673 股，占公司 总股本比例为 26.11%；累计质押股份数量为 85,780,000 股，占其所持股份比例为 56.16%，占公司总股本比例为 14.66%。 一、上市公司股份质押 公司于 2024 年 5 月 21 日收到控股股东医药集团关于股 ...

Investment Rating - The report maintains a "Buy" rating for the company with an updated DCF target price of RMB 44.31, reflecting a 26% upside potential from the closing price on May 6 [1][4][14]. Core Insights - The company is expected to achieve a revenue and net profit CAGR of 19% and 24% respectively from 2023 to 2026, driven by strong growth in emerging business segments and rapid online sales growth [1][2]. - The company reported 2023 revenues and net profits of RMB 22.44 billion and RMB 0.93 billion, representing year-on-year growth of 11% and 18% respectively [1][8]. - The company is focusing on expanding its store network in advantageous provinces and penetrating lower-tier markets, with a total of 14,109 stores as of Q1 2024 [1][2]. Financial Performance - In Q1 2024, the company achieved revenues and net profits of RMB 5.54 billion and RMB 0.32 billion, showing a year-on-year growth of 2% and 10% respectively [1][8]. - The gross margin improved to 35.2% in Q1 2024, up 2.2 percentage points year-on-year, attributed to the implementation of the Torch Project [2][8]. - The company plans to open 4,000, 5,000, and 6,000 new stores in 2024, 2025, and 2026 respectively, focusing on advantageous provinces and key cities [1][2]. Revenue and Profit Forecasts - The company’s revenue is projected to reach RMB 27.04 billion in 2024, RMB 32.42 billion in 2025, and RMB 38.24 billion in 2026, with corresponding net profits of RMB 1.14 billion, RMB 1.47 billion, and RMB 1.76 billion [3][12][20]. - The report indicates a downward adjustment in the 2024-2025 profit forecasts due to a slowdown in acquisition speed and capital expenditure [11][14]. Market Position and Competitive Landscape - The company is actively expanding its online sales channels, with online sales reaching approximately RMB 2 billion in 2023, a 38% increase year-on-year [2][8]. - The company holds a significant market share in 11 provinces, with four of them being the top market share holders [1][2]. Valuation Metrics - The target price corresponds to a 2024 P/E ratio of 23x, which is higher than the industry average of 16x, indicating a premium valuation due to strong growth prospects [4][14].

Summary of the Conference Call Company Overview - The conference call involved **老百姓 (LaobaiXing)**, a prominent player in the **pharmaceutical retail industry** in China, focusing on its operational performance and strategic initiatives for 2023 and 2024 [1][2]. Key Financial Performance - For the fiscal years 2022 and 2023, the company reported: - **Revenue**: CNY 22.437 billion, a year-on-year increase of **11.21%** [2]. - **Net Profit**: CNY 929 million, up **18.35%** year-on-year [2]. - **Net Operating Cash Flow**: CNY 2.73 billion, a growth of **17.95%** [2]. - **Earnings Per Share**: CNY 1.59, reflecting a **16.91%** increase [3]. - **Gross Margin**: 32.5%, an increase of **0.67 percentage points** [3]. Revenue Breakdown - The revenue distribution indicates a strong focus on the pharmaceutical retail sector: - **Retail Revenue**: 86.24% of total revenue, with a growth rate of **9.96%** [3]. - **Franchise and Distribution**: 13.06% of total revenue, growing by **19.62%** [4]. - **Sales Composition**: - **Traditional Chinese and Western Medicine**: 78.56%, with a growth rate of **12.59%** [4]. - **Traditional Chinese Medicine**: 7.4%, growing by **18.19%** [5]. - **Non-Pharmaceutical Products**: 14.04%, with a modest growth of **1.13%** [5]. Expansion and Store Growth - As of Q1 2024, the company operates **14,109 stores**, with **9,470** being direct-operated and **4,639** franchised, indicating a **10%** franchise ratio [8]. - The company added **3,328 stores** in 2023, with **1,802** being direct-operated and **1,586** franchised [8]. - In Q1 2024, **642 new stores** were opened, maintaining a steady growth trajectory [9]. Strategic Initiatives - The company is focusing on enhancing its **franchise model**, which has shown significant growth, with **22 billion** in franchise delivery revenue, up **20%** year-on-year [11]. - The **digital transformation** initiated in 2019 has led to improved operational efficiency, with a reported **CNY 1.33 billion** investment in R&D in 2023 [59]. - The **Torch Project** aims to enhance gross margins without altering retail prices, focusing on product selection and supply chain optimization [31][32]. Market Position and Competitive Advantage - The company has a strong market presence, covering **18 provinces** and over **150 cities** in China, with a significant market share in key provinces [7]. - The **outpatient insurance policy** has positively impacted the business, with **4,673** stores included in the outpatient insurance program, enhancing customer traffic [13][42]. Future Outlook - The company plans to open **4,000 new stores** in 2024, with a focus on franchising [37]. - The **self-owned brand** sales are projected to reach **20-30%** of total sales in the next 2-3 years, currently at **20.8%** [54][55]. - The digital initiatives are expected to continue driving efficiency and profitability, with a focus on enhancing customer experience and operational management [60][61]. Additional Insights - The company emphasizes a **sustainable growth model**, with a focus on community engagement and customer satisfaction, reflected in its membership growth to **86.35 million** [23]. - The **digitalization efforts** have resulted in a significant return on investment, with a net profit contribution of over **CNY 130 million** from digital projects [59]. This summary encapsulates the key points discussed during the conference call, highlighting the company's financial performance, strategic initiatives, market position, and future outlook in the pharmaceutical retail industry.

证券代码：603883 证券简称：老百姓 公告编号：2024-031 老百姓大药房连锁股份有限公司 关于召开 2023 年度暨 2024 年第一季度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记 载、误导性陈述或者重大遗漏，并对其内容的真实性、准确性和 完整性承担法律责任。 重要内容提示： 会议召开时间：2024 年 5 月 28 日(星期二)上午 10:00-11:30 会议召开地点 ： 上海证券 交易所上证路演中心（ 网址： http://roadshow.sseinfo.com/） 会议召开方式：上证路演中心视频直播和网络互动 投资者可于 2024 年 5 月 21 日(星期二)至 5 月 27 日(星期一)16:00 前登录上 证路演中心网站首页点击"提问预征集"栏目或通过公司邮箱 ir@lbxdrugs.com 进行提问。公司将在说明会上对投资者普遍关注的问题进行回答。 老百姓大药房连锁股份有限公司（以下简称"公司"）已于 2024 年 4 月 30 日发布公司 2023 年度报告与 2024 年一季度报告，为便于广大投资者更全面深入 地了解公司 2023 年度及 2024 ...

Investment Rating - The report maintains a "Buy" rating for the company, with a focus on expanding its market presence and enhancing profitability through various strategies [1][14]. Core Views - The company has significantly improved its profitability, driven by initiatives such as the "Torch Project," which has enhanced its gross margin [2][5]. - The company is actively expanding its store network, having opened 3,388 new stores in 2023 and 642 in Q1 2024, bringing the total to 14,109 stores [1][9]. - The company is focusing on digital transformation and cost reduction to improve operational efficiency and profitability [11][12]. Financial Performance Summary - In 2023, the company achieved revenue of 22.437 billion yuan, a year-over-year increase of 11.21%, and a net profit of 929 million yuan, up 18.35% [4][5]. - For Q4 2023, revenue was 6.396 billion yuan, with a slight decline of 0.05% year-over-year, while net profit increased by 21.17% to 212 million yuan [4][5]. - In Q1 2024, the company reported revenue of 5.539 billion yuan, a year-over-year increase of 1.81%, and a net profit of 321 million yuan, up 10.27% [4][5]. Profitability and Margin Analysis - The gross margin for Q1 2024 improved to 35.20%, an increase of 2.20 percentage points year-over-year, attributed to the implementation of the "Torch Project" [2][9]. - The company’s gross margin for 2023 was 32.55%, reflecting a year-over-year increase of 0.67 percentage points [13]. Market Expansion and Strategy - The company has established a presence in 18 provincial markets and over 150 cities, capturing approximately 75% of the Chinese pharmaceutical retail market [1][9]. - The company is focusing on a multi-faceted growth strategy that includes direct sales, acquisitions, franchising, and alliances to enhance market share in key provinces [9][11]. Earnings Forecast - The earnings per share (EPS) forecast for 2024-2026 is projected at 1.47, 1.77, and 2.14 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 24.1X, 19.9X, and 16.5X [1][14].