Group 1: Policy Environment - The online sales ban on prescription drugs is expected to be lifted, lowering the entry barriers for pharmaceutical e-commerce [1][2] - In 2013, China's online shopping market reached a transaction scale of 1.85 trillion yuan, while online pharmacy sales were only 4.26 billion yuan [1] - Some provinces are piloting online pharmacy insurance payment, with specific pharmacies selected for trials [2] Group 2: E-commerce Business Practices - The company is exploring e-commerce models and has established partnerships with e-commerce solution and consulting providers [3][5] - The official website offers nearly 3,000 products across various categories, including Western and Chinese medicines, medical devices, and health supplements [3][4] - The company has launched O2O practices in select stores, training staff to manage online orders and inventory effectively [4] Group 3: Challenges in E-commerce - The online purchase habit for pharmaceuticals is not yet mature, with most consumers aged 25-35, while the 40+ age group prefers traditional purchasing methods [6][7] - Regulatory requirements for pharmaceutical sales are stricter compared to other consumer goods, complicating logistics and delivery [7] - The lack of qualified third-party logistics providers for pharmaceutical delivery increases operational costs [7] Group 4: Future Development Plans - The company aims to leverage its retail pharmacy network to explore O2O marketing models and enhance user experience [8] - There is a focus on integrating online and offline customer data to improve service delivery and retention [8] - The company plans to continuously adapt its business model based on international best practices in pharmaceutical e-commerce [8]

Group 1: Industry Overview - The pharmaceutical industry in China is currently fragmented, with a total market exceeding 1 trillion CNY, where the first terminal (hospitals) accounts for over 70%, and the second terminal (pharmacies) represents over 20% [3][4]. - The retail pharmacy sector, represented by Yunnan Hongxiang Yixintang, is the only listed company in the second terminal, indicating a lack of competition in this space [2][4]. Group 2: Policy Analysis - The Chinese government has not explicitly prohibited the external flow of hospital prescriptions, but many hospitals have implemented measures to prevent this, resulting in retail pharmacies capturing only about 25% of the market [5][6]. - The recent notice from the Ministry of Commerce emphasizes the encouragement of prescription flow to retail pharmacies, aiming to utilize social pharmacy resources and reduce waste [6][7]. Group 3: Future Market Predictions - The retail market share is expected to improve gradually, with the potential for retail pharmacies to capture a larger portion of the market, possibly doubling the current pharmacy market size to around 4.8 billion CNY [9][10]. - The transition to a more integrated pharmaceutical market will occur in stages, starting with hospitals operating their own pharmacies, followed by pharmacy management by retail chains, and eventually leading to consolidation by large retail companies [10][11]. Group 4: Company Strategy - Yunnan Hongxiang Yixintang plans to expand its operations by focusing on the southwestern region and leveraging e-commerce to enhance its market presence [12][13]. - The company aims to achieve a balance between opening new stores and acquiring existing ones, with a focus on small clinics and community hospitals for future partnerships [15][16]. Group 5: Market Challenges - The current market structure presents challenges for retail pharmacies, as hospitals are reluctant to release prescriptions without strong policy incentives, complicating the transition to a more open market [11][12]. - The company acknowledges that while it holds a market share of just over 2%, it aims to consolidate the industry and capture a larger share of the first terminal's prescription flow [16][17].

Group 1: Investor Relations Activity - The activity involved a specific audience survey and a site visit [1] - The event took place on September 4, 2014, from 14:30 to 17:30 [1] - The location was the conference room of Yunnan Hongxiang Yixintang Pharmaceutical (Group) Co., Ltd. [1] Group 2: Participants and Representatives - The participating unit was Cinda Securities, represented by Li Xihuan [1] - Company representatives included Board Secretary Tian Jun, Assistant President Luo Yongbin, and Securities Affairs Representative Dai Sishun [1] Group 3: Main Content of the Activity - The primary focus of the investor relations activity was on e-commerce business communication [1] - A record of questions raised during the on-site exchange was included as an attachment [1]

Group 1: E-commerce Development - The company has explored various models for its pharmaceutical e-commerce and established partnerships with e-commerce solution providers to advance its business [2] - The strategy involves leveraging retail physical stores and internet technology to enhance service capabilities for consumers [2] - The company will monitor national policy changes and align its e-commerce development with market demands [2] Group 2: Inventory and Logistics Management - The company has implemented the SAP WMS (Warehouse Management System) to optimize inventory distribution and ensure timely supply to stores [3] - The logistics system integrates various management functions, including inventory, order, and reverse logistics management [4] - The logistics infrastructure includes advanced equipment such as high racks, automated transmission systems, and RF mobile terminals [4] Group 3: Operational Processes - The inbound process utilizes MRP (Material Requirements Planning) for effective delivery management and quality checks through RF mobile terminals [4][5] - The replenishment process involves strict management of whole and split items, with 100% of items requiring split operations and 85% of outbound items being consolidated [5] - The picking process employs 130 RF mobile terminals for efficient, accurate, and paperless operations [6] Group 4: Review and Shipping Processes - The review process is conducted using RF mobile terminals, ensuring accurate verification and packaging of items [6] - The shipping process includes 52 outbound sorting lines, with automated scanning and allocation of packages to designated delivery points [7] - The MRP data calculation for replenishment is based on historical sales data to forecast future demand and optimize inventory levels [7]

Store Growth and Profitability - New stores begin normal operations from the third month and achieve profitability by the 12th month, with cumulative profitability reached by the 26th month [1] - The company has experienced a 30% profit growth over the past three years, primarily from the maturation of existing stores and enhanced brand collaboration [1] Expansion Plans - The company aims to strengthen its market position in Yunnan and expand into Sichuan, Guangxi, Guizhou, Chongqing, and Shanxi, targeting to become one of the top three pharmaceutical retail chains in China [1] - Focus on direct retail chain expansion and improving logistics and supply chain integration to enhance scale benefits [1] Brand Collaboration and Supply Chain Integration - As of December 31, 2013, the company had over 2,300 direct chain stores and 1,194 co-branded products, with the top 100 products accounting for nearly 50% of sales [3][4] - The company directly procures from manufacturers, benefiting from lower prices and favorable terms, with over 60% of total sales coming from direct purchases from manufacturers [5] E-commerce Environment and Practices - The online pharmaceutical market in China was valued at 42.6 billion yuan in 2013, with significant policy changes expected to boost e-commerce growth [6] - The company is exploring e-commerce models, including a website with nearly 3,000 products and partnerships with third-party platforms like Tmall [7] - O2O practices are being implemented in select stores to enhance customer experience and integrate online and offline sales [7]

投资者关系活动记录表 1 证券代码：002727 证券简称：一心堂 云南鸿翔一心堂药业（集团）股份有限公司投资者关系活动记录表 编号：TG1409-003 | --- | --- | --- | |------------------------|------------------------|----------------------------------------------------------| | | | | | 投资者关系活动 | ■ | 特定对象调研 □分析师会议 | | 类别 | □ | 媒体采访 □业绩说明会 | | | □ 新闻发布会 □路演活动 | | | | □ 现场参观 | | | | ■ 其他 （电话会议） | | | 参与单位名称及 | 国泰君安、国信证券等 | 125 人 | | 人员姓名 | | | | 时间 | 2014 年 9 月 10 | 日 16： 00-17：00 | | 地点 | | 云南鸿翔一心堂药业（集团）股份有限公司会议室 | | 上市公司接待人 | | 公司董事、 董事会秘书、副总裁、财务负责人 田俊，证券事务 | | 员姓名 | | 代表、证券 ...