Market Overview - The pharmaceutical commercial sector experienced a decline of 1.62% on November 17, with Luyuan Pharmaceutical leading the drop [1] - The Shanghai Composite Index closed at 3972.03, down 0.46%, while the Shenzhen Component Index closed at 13202.0, down 0.11% [1] Stock Performance - Notable gainers included: - Renmin Tongtai (600829) with a closing price of 16.64, up 9.98% and a trading volume of 768,000 shares, totaling 1.276 billion yuan [1] - Other stocks in the sector showed mixed results, with several companies like Shanghai Pharmaceuticals (601607) and Guoyao Yizhi (000028) experiencing declines of 1.20% and 1.53% respectively [1] Capital Flow - The pharmaceutical commercial sector saw a net outflow of 875 million yuan from institutional investors, while retail investors contributed a net inflow of 674 million yuan [2] - The data indicates that retail investors were more active in the market compared to institutional investors during this period [2] Individual Stock Capital Flow - Key stocks with significant capital flow include: - Shuyuan Pingmin (301017) with a net inflow of 17.85 million yuan from institutional investors, while retail investors had a net outflow of 35.94 million yuan [3] - Nanjing Pharmaceutical (600713) had a net inflow of 17.30 million yuan from institutional investors, but also saw outflows from retail investors [3] - Guoyao Yizhi (000028) and Shanghai Pharmaceuticals (601607) also experienced mixed capital flows, with institutional inflows but retail outflows [3]

Core Viewpoint - The performance of seven listed chain pharmacies in the third quarter of this year shows a mixed picture, with some achieving growth in both revenue and net profit, while others experienced declines. The overall trend indicates a slowdown in store expansion and a focus on improving quality and efficiency in the industry [1][12]. Revenue and Profit Summary - Dazhenglin reported revenue of 20.068 billion yuan, a year-on-year increase of 1.71%, and a net profit of 1.081 billion yuan, up 25.97% [2][3]. - Yifeng Pharmacy achieved revenue of 17.286 billion yuan, a slight increase of 0.39%, with a net profit of 1.225 billion yuan, growing by 10.27% [2][3]. - Laobaixing's revenue decreased by 1% to 16.07 billion yuan, with a net profit of 529 million yuan, down 16.11%, the largest decline among the seven pharmacies [2][4]. - Yixin Tang's revenue was 13.001 billion yuan, down 4.33%, and net profit was 269 million yuan, down 8.17% [2][4]. - Jianzhijia reported revenue of 6.549 billion yuan, a decrease of 2.8%, and net profit of 101 million yuan, down 0.2% [2][5]. - Shuyupingmin achieved revenue of 7.446 billion yuan, up 5.19%, and net profit of 109 million yuan, a significant increase of 927.37% [2][6]. - Huaren Health, listed in March 2023, reported revenue of 3.892 billion yuan, a growth of 19.06%, and net profit of 157 million yuan, up 45.21% [2][6]. Store Expansion and Market Trends - The rapid expansion of chain pharmacies has slowed, with many companies pausing new store openings. The total number of pharmacies in the country decreased by 0.5% in the third quarter of 2024, marking the first quarterly decline in recent years [7][8]. - Dazhenglin had 16,833 stores by the end of the reporting period, with a significant number of closures [8][10]. - Laobaixing had 15,492 stores, closing 304 and opening 756, while Yifeng Pharmacy had 14,666 stores, closing 440 [9][10]. - Yixin Tang closed more stores than it opened, with 430 closures and only 288 new stores [9][10]. - Shuyupingmin made strategic acquisitions, adding 754 stores in its core market of Shandong, while Huaren Health also expanded its store count through new openings and acquisitions [11][12]. Industry Challenges and Adjustments - The industry is facing multiple pressures, including regulatory changes and increased competition, leading to a decline in profitability for many chain pharmacies. Companies are focusing on closing underperforming stores and improving operational efficiency [12]. - The shift towards online and offline integration is expected to accelerate, with larger listed chains likely to benefit from increased market concentration [12].

Core Insights - The performance of seven listed chain pharmacies in the third quarter of this year shows a mixed picture, with some achieving growth in both revenue and net profit, while others experienced declines [1][3][4]. Revenue and Profit Performance - Dazhenlin reported a revenue of 20.068 billion yuan, a year-on-year increase of 1.71%, and a net profit of 1.081 billion yuan, up 25.97% [2][3]. - Yifeng Pharmacy achieved a revenue of 17.286 billion yuan, a slight increase of 0.39%, and a net profit of 1.225 billion yuan, growing by 10.27% [2][3]. - Laobaixing's revenue decreased by 1% to 16.07 billion yuan, with a net profit of 529 million yuan, down 16.11%, the largest decline among the seven pharmacies [2][4]. - Yixin Tang's revenue was 13.001 billion yuan, down 4.33%, and net profit was 269 million yuan, down 8.17% [2][4]. - Jianzhijia reported a revenue of 6.549 billion yuan, a decrease of 2.8%, and a net profit of 101 million yuan, down 0.2% [2][5]. - Shuyupingmin achieved a revenue of 7.446 billion yuan, up 5.19%, and a net profit of 109 million yuan, a significant increase of 927.37% [2][6]. - Huaren Health, listed in March 2023, reported a revenue of 3.892 billion yuan, a growth of 19.06%, and a net profit of 157 million yuan, up 45.21% [2][6]. Store Expansion Trends - The rapid expansion of chain pharmacies has slowed down, with many companies pausing new store openings and focusing on improving efficiency [1][7]. - The total number of pharmacies in the country decreased by 0.5% in the third quarter of 2024, marking the first quarterly decline in recent years [7]. - Dazhenlin had 16,833 stores by the end of the reporting period, with a net increase of only 152 self-built stores and no new acquisitions [8][12]. - Laobaixing had 15,492 stores, closing 304 and opening 756, with a significant portion being franchise stores [9][12]. - Yifeng Pharmacy had 14,666 stores, closing 440 and opening 422, including franchises [10][12]. - Yixin Tang closed 430 stores while opening only 288, indicating a contraction in its store network [11][12]. - Shuyupingmin, however, expanded through acquisitions, adding 754 stores in the Shandong region [13][14]. Industry Challenges and Adjustments - The industry is facing multiple pressures, including regulatory changes and increased competition, leading to a decline in profitability for many pharmacies [15]. - Companies are focusing on closing underperforming stores and improving operational efficiency as part of their strategic adjustments [15].

Core Viewpoint - The A-share chain pharmacy industry is experiencing a significant adjustment period, characterized by high goodwill levels due to previous aggressive expansion strategies through mergers and acquisitions. Companies are now facing challenges in balancing scale effects with operational quality [1][2]. Goodwill Accumulation - As of the end of Q3, the total goodwill of six A-share chain pharmacy companies reached 20.778 billion yuan, with an average of 3.463 billion yuan per company. The highest goodwill was recorded by Lao Bai Xing at 5.763 billion yuan, followed by Yi Feng Pharmacy at 4.772 billion yuan and Da San Lin at 3.522 billion yuan [2]. - Goodwill as a percentage of current assets is notably high, with Lao Bai Xing at 65.28% and Jian Zhi Jia exceeding 50% at 58.7%. This trend of high goodwill has persisted for several years, with Lao Bai Xing's goodwill exceeding 5 billion yuan in 2022 [2]. Performance Trends - The performance of A-share chain pharmacies has shown divergence in the first three quarters of this year. While Shuyu Pingmin has reported a revenue increase of 5.19% to 7.446 billion yuan and turned a profit of 109 million yuan, other companies like Lao Bai Xing have seen declines in net profit by 16.11% to 529 million yuan [4]. - Despite the overall decline in net profit for some companies, Lao Bai Xing showed signs of recovery in Q3 with a slight revenue increase of 0.07% [4]. Store Count Decline - Many chain pharmacy companies are experiencing a decline in the number of stores. Lao Bai Xing reported a net decrease of 240 direct stores this year, while Yi Feng Pharmacy closed 440 stores and opened only 137 [7]. - Jian Zhi Jia also closed more stores than it opened, with a net decrease of 38 stores. In contrast, Shuyu Pingmin increased its direct store count due to acquisitions, reflecting a shift in focus from quantity to quality in store management [7]. Industry Direction - As market saturation increases, the strategy of merely expanding store numbers is becoming less effective. The future direction for chain pharmacies should focus on high-quality service and enhancing customer experience to improve competitiveness [8].

Core Viewpoint - The A-share chain pharmacy industry is experiencing a significant adjustment period, marked by high goodwill levels and a decline in the number of direct-operated stores, necessitating a balance between scale effects and operational quality [1][4]. Goodwill Accumulation - As of the end of Q3, the total goodwill of six A-share chain pharmacy companies reached 20.778 billion yuan, with the highest being 5.763 billion yuan for Lao Bai Xing [1][3]. - Goodwill accounts for over 50% of current assets for Lao Bai Xing and Jian Zhi Jia, indicating a heavy reliance on past acquisitions for growth [1][3]. Performance Trends - The performance of the six major A-share chain pharmacies has shown divergence in the first three quarters of the year, with some companies like Shu Yu Ping Min recovering from previous losses, achieving a revenue of 7.446 billion yuan, a year-on-year increase of 5.19% [5][6]. - Lao Bai Xing reported a revenue decline of 1% to 16.07 billion yuan and a net profit drop of 16.11% to 529 million yuan in the same period, although it showed signs of recovery in Q3 [6][8]. Store Count Changes - Many chain pharmacy companies have seen a decrease in the number of stores, with Lao Bai Xing reducing its direct-operated stores by 240 to 9,981 by the end of Q3 [8][9]. - Yi Feng Pharmacy and Jian Zhi Jia also reported net decreases in store counts, reflecting a shift from quantity to quality in store management [8][9]. Industry Outlook - The industry is transitioning from a focus on rapid expansion through store count to enhancing service quality and operational efficiency, as market saturation makes previous growth strategies less effective [9].

Group 1 - The core viewpoint of the report emphasizes the reduction of reliance on medical insurance and an increase in the proportion of over-the-counter drugs [1] - The company is continuously enhancing its planning for high-margin products such as personal care and medical devices [1] - There is a focus on restructuring store expenses and gradually realizing cost control and efficiency improvements [1] - The optimization of existing stores has led to a stabilization of sales per unit area [1]

Core Viewpoint - The company, Jianzhijia, is experiencing a decline in revenue and profit due to ongoing healthcare reform policies affecting the pharmaceutical retail market, leading to a strategic shift towards non-medical insurance dependency and enhanced service offerings [4][7]. Stock Performance - As of October 31, 2025, Jianzhijia's stock closed at 20.61 yuan, down 2.41% from the previous week [1]. - The company's market capitalization is 3.185 billion yuan, ranking 28th out of 32 in the pharmaceutical commercial sector and 4418th out of 5163 in the A-share market [1]. Shareholder Changes - As of September 30, 2025, the number of shareholders is 15,100, a slight decrease of 0.04% from June 30, 2025 [3][6]. Financial Performance - For the first three quarters of 2025, Jianzhijia reported a main revenue of 6.549 billion yuan, a year-on-year decrease of 2.77% [4]. - The net profit attributable to shareholders for the same period is 101 million yuan, down 0.22% year-on-year [4]. - In Q3 2025, the single-quarter main revenue was 2.092 billion yuan, a decline of 7.01% year-on-year, with a net profit of 28.23 million yuan, down 25.62% year-on-year [4][6]. Institutional Research Insights - The proportion of medical insurance settlement income in the company's main business revenue has decreased from 52% in 2022 to 40% in the first nine months of 2025, indicating a continuous but slowing decline [5][6]. - The company is focusing on transforming its business model from reliance on medical insurance to enhancing non-medical insurance products and services, aiming to stimulate customer demand rather than just meet it [5][7]. - Online revenue for the first nine months of 2025 reached approximately 1.979 billion yuan, a year-on-year increase of 9.71%, accounting for 30.23% of total revenue [5]. Strategic Initiatives - The company is committed to a transformation strategy that emphasizes professional pharmaceutical services, health management, and diversified product offerings, particularly in chronic disease management [5][7]. - Efforts are being made to improve operational efficiency and cost control, with a focus on enhancing store performance and customer service through specialized training and resource allocation [5][7].

Report Summary 1. Report Industry Investment Rating - No information provided. 2. Core Viewpoints - Since 2024, the pharmaceutical reform policy has been continuously explored, leading to stagnant growth in industry revenue and downward pressure on profits. The company's revenue has basically stabilized compared to the same period last year, with a 2.77% year - on - year decline in the first nine months of 2025. The company is committed to transformation, focusing on the main business, and strengthening its advantages in non - medical insurance - dependent category diversification and omni - channel marketing [24]. 3. Summary by Relevant Catalogs 3.1 Research Basic Situation - The research object is Jianzhijia, belonging to the pharmaceutical business industry. The reception time was on October 30, 2025. The listed company's reception staff included the chairman, general manager Lan Bo, the chief financial officer and board secretary Li Heng, and independent director Guan Yunhong [17]. 3.2 Detailed Research Institutions - The reception objects included investors and others [20]. 3.3 Research Institution Proportion - No information provided. 3.4 Main Content Data - **Revenue Situation**: From 2022 - 2024, the proportion of medical insurance settlement income based on personal accounts in the company's pharmacy main business income (excluding B2C) was 52%, 47%, and 44% respectively, dropping to 40% from January to September 2025. In the first nine months of 2025, the company achieved an operating income of 6.549 billion yuan, a 2.77% year - on - year decrease. The online operating income was 1.9794442 billion yuan, a 9.71% year - on - year increase, accounting for 30.23% of the operating income. The company strengthened cost control, with a 2.84% year - on - year decrease in period costs [24]. - **Business Expansion Plan**: The company focuses on the main business, continues to strengthen its advantages in non - medical insurance - dependent category diversification and omni - channel marketing. It will build more specialty pharmacies for diabetes, cardiovascular and cerebrovascular diseases, etc., and develop specialized solutions for single diseases. It will also strengthen the cooperation with leading enterprises in personal care products and develop exclusive products [25][26]. - **Measures to Deal with the Weak Growth of the Pharmaceutical Retail Market**: The company focuses on transformation, stability of revenue, and cost - control and efficiency - improvement. It promotes business transformation, improves the efficiency of existing stores, complies with regulations, controls costs, and adjusts category planning to support transformation and enhance supply chain capabilities [27].

Core Viewpoint - The company is undergoing a significant transformation in response to ongoing policy changes and market challenges, focusing on enhancing operational efficiency, diversifying revenue streams, and improving customer service capabilities. Financial Performance - In the first three quarters of 2025, the company's revenue decreased by 2.77% year-on-year, with a net profit of 31.93 million yuan, a slight increase of 2.55% compared to the previous year [6][7]. - The company's operating income for the third quarter was down 7.01% year-on-year, reflecting the impact of policy changes and sluggish pharmaceutical consumption [7]. Market and Economic Context - The retail sales of social consumer goods increased by 4.5% year-on-year in the first nine months of 2025, but the growth in the Chinese medicine sector was only 1.3%, a significant decline from 4.7% in the previous year [4]. - The GDP growth rate for the first three quarters of 2025 was 5.2%, while per capita healthcare spending grew by only 1.5%, down from 3.5% in the same period of 2024 [4]. Business Transformation Strategies - The company is shifting its focus from reliance on medical insurance income to enhancing non-drug business and professional services, with the proportion of medical insurance income in main business revenue decreasing from 52% in 2022 to 40% in 2025 [4][6]. - The company is actively optimizing its product categories and enhancing inventory turnover efficiency, resulting in a significant reduction of 727 million yuan in inventory value compared to the beginning of the year [8][45]. Cost Control and Efficiency Improvement - The company has implemented strict cost control measures, achieving a 2.84% reduction in period expenses in the first nine months of 2025, compared to a 13.42% increase in 2024 [6][14]. - The company is focusing on improving store efficiency and reducing costs by closing or relocating underperforming stores, resulting in a net decrease of 38 stores by the end of September 2025 [18]. Compliance and Regulatory Adaptation - The company is enhancing its compliance with medical insurance regulations and actively coordinating with regulatory bodies to ensure adherence to new policies [10][39]. - The company has developed a comprehensive system for managing prescription control and drug traceability, which has been fully implemented since July 1, 2025 [11][39]. Customer Engagement and Service Enhancement - The company is strengthening its membership system and community health initiatives, conducting numerous health promotion activities to enhance brand awareness and customer loyalty [25][26]. - The company is expanding its chronic disease management services, with over 5.6 million chronic disease members registered, reflecting a 54.6% increase year-on-year [26][27]. Future Outlook and Strategic Focus - The company plans to maintain a cautious yet proactive approach in the fourth quarter of 2025, focusing on core competencies and adjusting strategies to respond to external changes [35][36]. - The company aims to enhance its supply chain capabilities and continue diversifying its product offerings to stimulate customer demand and improve overall performance [41].

Core Insights - The company Jianzhijia (605266.SH) reported a total operating revenue of 6.549 billion yuan for the first three quarters of 2025, representing a year-on-year decrease of 2.77% [1] - The net profit attributable to shareholders of the parent company was 101 million yuan, showing a slight decline of 0.22% year-on-year [1] - The basic earnings per share stood at 0.65 yuan [1]