NO.1 PHARMACY(SH:600833)2025-04-08 09:10Financial Performance - The net profit attributable to shareholders for 2024 is CNY 163,061,272.77, with the parent company achieving a net profit of CNY 112,390,863.64[6]. - The proposed cash dividend is CNY 2.20 per 10 shares, totaling CNY 49,078,996.34, which represents 30.10% of the annual net profit attributable to shareholders[6]. - The total distributable profit at the end of the year is CNY 478,883,838.60 after accounting for the cash dividend distribution and the statutory surplus reserve[6]. - The company's operating revenue for 2024 reached ¥1,915,159,154.27, representing a year-on-year increase of 5.26% compared to ¥1,819,516,165.79 in 2023[24]. - The net profit attributable to shareholders for 2024 was ¥163,061,272.77, showing a significant increase of 82.65% from ¥89,275,234.00 in 2023[24]. - The basic earnings per share for 2024 increased to ¥0.73, up 82.50% from ¥0.40 in 2023[25]. - The weighted average return on equity rose to 15.06%, an increase of 6.05 percentage points compared to 9.01% in 2023[25]. - The net assets attributable to shareholders at the end of 2024 were ¥1,135,611,595.12, reflecting a 13.40% increase from ¥1,001,446,115.48 at the end of 2023[24]. - The total assets at the end of 2024 amounted to ¥1,980,057,333.84, which is a 6.27% increase from ¥1,863,168,849.07 at the end of 2023[24]. - The cash flow from operating activities for 2024 was ¥49,027,345.54, a decrease of 16.18% compared to ¥58,492,291.10 in 2023[24]. Corporate Governance - The company has a commitment to ensuring the accuracy and completeness of the annual report, with all board members present at the meeting[3][4]. - The audit report issued by the accounting firm is a standard unqualified opinion, confirming the financial report's integrity[5]. - The company has established a robust internal control system to enhance operational management and risk prevention capabilities[133]. - The company has ensured the independence of its operations, assets, finances, personnel, and institutions following the transfer of shares to Baillan Group, which became the controlling shareholder[135]. - Baillan Group has committed to maintaining the operational independence of the company, ensuring it has independent procurement, production, and sales capabilities[136]. - The company guarantees that its assets, including operating licenses, intellectual property, and related facilities, are fully owned or used independently by the company[137]. - The financial independence of the company is assured, with a separate accounting department and financial personnel not involved in Baillan Group's other entities[137]. - The company has established a complete and independent corporate governance structure, ensuring no institutional overlap with Baillan Group[138]. - The company has held three shareholder meetings during the reporting period, ensuring compliance with legal requirements and protecting shareholder rights[126]. - The board of directors consists of nine members, including three independent directors, ensuring compliance with legal and regulatory requirements[128]. Market and Operational Strategy - The company plans to enhance its core competitiveness and support high-quality development as part of its strategic goals for the "14th Five-Year Plan" period[32]. - The company is focusing on improving front-end business operations and strengthening backend support to drive growth[32]. - The company expanded its retail network, reaching a total of 206 stores with a net increase of 35 stores during the reporting period, including 2 new pet specialty stores[33]. - The company added 53 medical insurance stores, with medical insurance stores accounting for over 60% of the total, surpassing the average coverage rate in the Shanghai market[33]. - Online business continued to grow, with the company ranking among the top 4 in O2O sales in Shanghai, showing significant improvement compared to previous years[37]. - The company launched 28 new products through strategic partnerships, enhancing collaboration with suppliers to promote sustainable business growth[38]. - The company established a traditional Chinese medicine decoction service center, becoming one of the first wholesale enterprises to meet group standards, aimed at improving patient service[37]. - The company aims to complete the construction of a modern intelligent logistics center by 2025, which will improve logistics efficiency and reduce costs[39]. - The company is adapting to the "Internet + healthcare" trend by collaborating with major platforms like JD.com and Tmall to meet the growing online medication purchasing demand[56]. - The company aims to improve its operational efficiency by adjusting its product structure in response to new pricing regulations from the National Medical Insurance Administration[49]. Community Engagement and Social Responsibility - The company conducted over 1,400 community health activities, reaching nearly 50,000 people, enhancing brand influence in local communities[35]. - The company has committed 27.18 million yuan to poverty alleviation efforts, benefiting 1,292 individuals through consumption assistance[191]. - The company made a total donation of 2.5 million yuan, including 2.5 million yuan in material donations for disposable masks to support 2,948 individuals in need[187]. - The company has implemented a comprehensive quality management training program to meet industry standards[173]. - The company emphasizes the importance of continuous and stable profit distribution while ensuring sustainable development[165]. Challenges and Risks - The company faces challenges from price reductions due to centralized procurement and increased competition from online platforms like JD and Alibaba[114]. - The company faces risks from industry policy changes, including the impact of "two-invoice system" and "volume-based procurement," which may increase cost pressures on pharmaceutical retail operations[120]. - Market competition is intensifying, with challenges from online medical services and changing consumer behaviors, necessitating adaptation to maintain competitiveness[120]. - Financial risks are present due to potential short-term increases in investment and expenses outpacing revenue growth during business transformation efforts[121]. Employee Development and Management - The company has implemented a flexible compensation policy based on "distribution according to work" and "efficiency first while considering fairness" to attract and retain talent[160]. - In 2024, the company will focus on training and talent development as a key measure to enhance competitiveness and employee quality[162]. - The company plans to strengthen the selection and training of young cadres and improve the talent selection mechanism[162]. - A new online training platform and internal/external course resources will be developed to meet talent development and reserve requirements[162]. - The company aims to cultivate a team of self-driven and agile future stars through its "New Talent Program" and "Little Cow" talent cultivation plan[162]. Financial Management and Audit - The company has established a mechanism for profit distribution decision-making that includes independent directors' opinions[169]. - The internal control audit report received a standard unqualified opinion, indicating effective internal control practices[181]. - The company has not faced any environmental penalties and adheres to national environmental protection laws and regulations[184]. - The company has not taken any carbon reduction measures during the reporting period, resulting in zero reduction in carbon emissions[185]. - The company has maintained good management control over its subsidiaries, with no loss of control reported[182].