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]

Financial Performance - The company's operating revenue for Q3 2025 was ¥2,092,309,132.74, a decrease of 7.01% compared to the same period last year[5] - The net profit attributable to shareholders for Q3 2025 was ¥28,227,823.03, down 25.62% year-on-year[5] - The total profit for Q3 2025 was ¥40,982,939.36, reflecting a decline of 13.23% compared to the previous year[5] - Total operating revenue for the first three quarters of 2025 was CNY 6,548,882,996.02, a decrease of 2.77% compared to CNY 6,735,206,324.77 in the same period of 2024[80] - Net profit for the first three quarters of 2025 was CNY 100,575,339.20, an increase of 2.18% compared to CNY 98,371,124.29 in 2024[81] Assets and Liabilities - The company reported a decrease in total assets to ¥9,739,539,927.47, down 8.32% from the end of the previous year[6] - Total current liabilities increased by 34.50% to approximately ¥2.16 billion, driven by increased short-term borrowings and bank acceptance bill financing[26] - The company's total liabilities decreased to CNY 7,114,767,220.73 in 2025 from CNY 7,842,700,401.71 in 2024, representing a reduction of 9.26%[80] - The total equity attributable to shareholders decreased to CNY 2,626,079,923.78 in 2025 from CNY 2,797,247,891.58 in 2024, a decline of 6.12%[80] Cash Flow - The company achieved a net cash flow from operating activities of ¥822,365,008.82 for the year-to-date, an increase of 63.79%[6] - Cash inflow from operating activities for the first three quarters of 2025 was CNY 6,664,555,989.57, down from CNY 7,020,499,902.81 in 2024, a decrease of 5.08%[84] - The net cash flow from operating activities was $822,365,008.82, an increase from $502,088,314.28 in the previous period, reflecting a growth of approximately 63.8%[85] Revenue Structure - The proportion of medical insurance settlement income in the company's main business revenue decreased from 52% in 2022 to 40% in 2025[8] - The company has shifted its revenue structure, with prescription drug revenue decreasing by 1.75% and non-prescription drug revenue increasing by 1.75%[10] - Prescription drug revenue decreased by 6.46% year-on-year, while non-prescription drug revenue increased by 2.52%, reflecting the company's efforts to reduce reliance on prescription drugs[47] Cost Management - The company has implemented cost control measures, resulting in a 6.67% decrease in period expenses in Q3 2025 compared to the same period last year[10] - The company has implemented measures to control costs, resulting in a 2.84% year-on-year decrease in period expenses for the first nine months of 2025[21] - The company has initiated negotiations to reduce rental costs, focusing on high-rent, low-output stores to improve overall cost structure[21] Inventory Management - The company has significantly reduced inventory value by CNY 726.82 million, achieving a 23.24% decrease compared to the beginning of the year, enhancing inventory turnover efficiency[15] - The company's inventory stock increased by 48.70% to approximately ¥145.44 million, influenced by the stock repurchase plan approved by the board[26] - Inventory decreased to approximately ¥2.40 billion from ¥3.13 billion, reflecting enhanced inventory turnover efficiency[78] Store Operations - The company closed 83 stores and opened 45 new stores in the first nine months of 2025, resulting in a net decrease of 38 stores, bringing the total to 5,448 stores[36] - The company faced challenges in expanding its store network due to high rents and regulatory constraints, leading to a strategic adjustment in its expansion pace[36] - The company is focusing on optimizing existing stores and addressing high-loss locations through strategic relocations[36] Shareholder Information - The total number of common shareholders at the end of the reporting period is 15,091[33] - The top 10 shareholders hold a total of 84,000,000 shares, representing 55.36% of the total shareholding[33] - Shenzhen Changsi Xing Industrial Development Co., Ltd. is the largest shareholder, holding 23,439,968 shares, which is 15.17% of the total[33] Compliance and Regulations - The company has established a comprehensive compliance system for medical insurance operations, enhancing training and assessment for relevant departments[18] - The company is actively working on compliance with regulatory bodies to improve drug supervision and insurance compliance levels[71] Strategic Initiatives - The company is focusing on enhancing store efficiency and transforming its business model to adapt to market changes and consumer needs[13] - The company is focusing on transforming its business model to emphasize professional pharmaceutical services and health management, moving away from reliance on insurance sales[69] - A strategic focus on high-quality innovation and category management is expected to drive sales growth and improve operational efficiency[74]

Core Viewpoint - The company reported a decline in both revenue and net profit for the third quarter of 2025 compared to the same period last year, indicating potential challenges in its financial performance [1] Financial Performance - In Q3 2025, the company achieved a revenue of 2.092 billion yuan, a year-on-year decrease of 7.01% [1] - The net profit attributable to shareholders was 28.2278 million yuan, down 25.62% year-on-year [1] - Basic earnings per share for Q3 2025 were 0.18 yuan [1] Year-to-Date Performance - For the first three quarters of 2025, the company reported a total revenue of 6.549 billion yuan, reflecting a year-on-year decline of 2.77% [1] - The net profit attributable to shareholders for the first three quarters was 101 million yuan, a slight decrease of 0.22% year-on-year [1] - Basic earnings per share for the first three quarters were 0.65 yuan [1]

Core Insights - The company reported a third-quarter revenue of 2.092 billion yuan, representing a year-on-year decline of 7.01% [1] - The net profit for the third quarter was 28.2278 million yuan, down 25.62% year-on-year [1] - For the first three quarters, the company achieved a revenue of 6.549 billion yuan, which is a year-on-year decrease of 2.77% [1] - The net profit for the first three quarters was 101 million yuan, reflecting a slight decline of 0.22% year-on-year [1]