大参林(603233) - 2025 Q2 - 季度财报

Definitions Definitions of Common Terms This section defines key terms, abbreviations, and industry-specific terminology used throughout the report, ensuring clarity and accurate understanding for readers - The reporting period refers to January 1, 2025, to June 30, 2025[13] - DTP pharmacies provide direct professional services to patients, including home delivery and medication consultation[13] - MTM (Medication Therapy Management) involves pharmacists providing professional services like medication education and counseling to enhance treatment efficacy[13] Company Profile and Key Financial Indicators Company Information This section provides the company's basic information, including its official name, legal representative, and stock listing details on the Shanghai Stock Exchange - The company's Chinese name is Dashenlin Pharmaceutical Group Co., Ltd., abbreviated as Dashenlin[15] - The company's legal representative is Ke Guoqiang[15] - The company's stock code is 603233, listed on the Shanghai Stock Exchange[19] Contact Persons and Information This section provides contact details for the Board Secretary and Securities Affairs Representative, facilitating investor communication - The Board Secretary is Peng Guangzhi, and the Securities Affairs Representative is Chen Guozhen[16] - The company's contact address is No. 410 and 410-1 Longxi Avenue, Liwan District, Guangzhou, Guangdong Province[16] Brief Introduction to Changes in Basic Information This section outlines the company's registered and office addresses, postal code, and website, confirming no changes during the reporting period - The company's registered and office addresses are both No. 410 and 410-1 Longxi Avenue, Liwan District, Guangzhou, Guangdong Province[17] - The company's website is www.dslyy.com[17](index=17&type=chunk) Brief Introduction to Changes in Information Disclosure and Document Storage Locations This section specifies the company's official information disclosure channels and report storage locations, with no changes reported during the period - The company's designated information disclosure newspapers include China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily[18] - The website address for publishing semi-annual reports is www.sse.com.cn[18](index=18&type=chunk) Company Stock Profile This section provides a brief overview of the company's stock type, listing exchange, abbreviation, and code, confirming its A-share listing on the Shanghai Stock Exchange - The company's stock type is A-shares, listed on the Shanghai Stock Exchange[19] - The stock abbreviation is Dashenlin, and the stock code is 603233[19] Company's Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for H1 2025, highlighting growth in revenue, net profit, and operating cash flow, indicating enhanced profitability Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 13,522,572,876.63 | 13,345,351,847.62 | 1.33 | | Total Profit | 1,123,847,435.29 | 900,850,479.92 | 24.75 | | Net Profit Attributable to Shareholders of Listed Company | 798,165,020.98 | 657,593,968.87 | 21.38 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | 788,956,662.15 | 658,926,951.84 | 19.73 | | Net Cash Flow from Operating Activities | 2,910,420,631.30 | 1,767,382,620.57 | 64.67 | | Net Assets Attributable to Shareholders of Listed Company (Period-End) | 7,331,744,927.94 | 6,897,244,933.36 | 6.30 | | Total Assets (Period-End) | 25,451,009,709.14 | 26,439,810,444.79 | -3.74 | Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.70 | 0.58 | 20.69% | | Diluted Earnings Per Share (RMB/share) | 0.70 | 0.58 | 20.69% | | Basic EPS (Excluding Non-Recurring Items) (RMB/share) | 0.69 | 0.58 | 18.97% | | Weighted Average Return on Net Assets (%) | 11.03 | 9.24 | Increase 1.79 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Items) (%) | 10.90 | 9.26 | Increase 1.64 percentage points | - Operating revenue increased by 1.33%, primarily driven by organic growth of existing stores and contributions from new and franchised stores[22] - Net profit attributable to shareholders and non-recurring net profit increased by 21.38% and 19.73% respectively, mainly due to revenue growth, improved management efficiency, and effective control of total operating costs[22] (一) Key Accounting Data H1 2025 saw operating revenue grow 1.33% to RMB 13.52 billion, total profit rise 24.75% to RMB 1.12 billion, and net operating cash flow surge 64.67% to RMB 2.91 billion Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 13,522,572,876.63 | 13,345,351,847.62 | 1.33 | | Total Profit | 1,123,847,435.29 | 900,850,479.92 | 24.75 | | Net Profit Attributable to Shareholders of Listed Company | 798,165,020.98 | 657,593,968.87 | 21.38 | | Net Cash Flow from Operating Activities | 2,910,420,631.30 | 1,767,382,620.57 | 64.67 | (二) Key Financial Indicators H1 2025 basic and diluted EPS both grew 20.69% to RMB 0.70/share, with weighted average ROE increasing 1.79 percentage points to 11.03%, signaling stronger profitability Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.70 | 0.58 | 20.69% | | Diluted Earnings Per Share (RMB/share) | 0.70 | 0.58 | 20.69% | | Weighted Average Return on Net Assets (%) | 11.03 | 9.24 | Increase 1.79 percentage points | Non-Recurring Gains and Losses Items and Amounts This section details the company's H1 2025 non-recurring gains and losses, totaling RMB 9.21 million, including government subsidies and financial asset fair value changes Non-Recurring Gains and Losses Items and Amounts for H1 2025 | Non-Recurring Item | Amount (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 482,865.24 | | Government Subsidies Recognized in Current Profit/Loss | 7,161,087.97 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets | 4,844,559.80 | | Gains/Losses from Entrusted Investments or Asset Management | 125,779.96 | | Other Non-Operating Income and Expenses | -4,228,672.61 | | Less: Income Tax Impact | 2,618,297.57 | | Minority Interest Impact (After Tax) | -3,441,036.04 | | Total | 9,208,358.83 | Management Discussion and Analysis Company's Industry and Main Business Operations During the Reporting Period This section details the company's core pharmaceutical retail business, integrated operating model, industry trends, and market position, highlighting growth drivers and competitive challenges - The company's main business includes chain retail of Chinese and Western medicines, ginseng and tonic herbs, traditional Chinese medicine decoction pieces, health products, and medical devices[28] - The company's operating model encompasses direct retail, direct-franchise, distribution, and manufacturing[29] - As of the end of the reporting period, the company operates 10,370 direct stores and 6,463 franchised stores across 21 provinces[30][31] - China's aging population continues to intensify, with those aged 60 and above projected to exceed 400 million by 2035, accounting for over 30% of the national population, continuously boosting demand for pharmaceutical retail[34] - In 2024, national retail pharmaceutical sales reached RMB 574 billion, growing 3.7% YoY; the physical pharmacy retail market declined 1.8% YoY[41][42] - The company was ranked first in the '2024-2025 China Pharmacy Value List Top 100' and holds a leading market share in Guangdong, Guangxi, Henan, and Heilongjiang[46] (1) Explanation of Main Business Operations The company, a leading pharmaceutical retail chain, operates an integrated 'direct retail, direct-franchise, distribution, and manufacturing' model, focusing on South China and expanding nationwide with a robust supply chain - The company's main business is chain retail of Chinese and Western medicines, ginseng and tonic herbs, traditional Chinese medicine decoction pieces, health products, medical devices, and other commodities[28] - The company has established long-term partnerships with over 10,000 manufacturers, operates 37 warehouses nationwide with a total storage area of 415,600 square meters, and handles over 80% of its own deliveries[29] - As of the end of the reporting period, the company operates 10,370 direct stores and 6,463 franchised stores across 21 provinces[30][31] - The company's manufacturing business includes traditional Chinese medicine decoction pieces, ginseng and tonics, health products, and Chinese and Western medicines, with core brands such as 'Dongzi Yunxuan', 'Kekekang', 'Nuobeihuale', 'Dongteng Ejiao', and 'Fuer'[32][33] (2) Explanation of Industry Situation The pharmaceutical retail sector benefits from an aging population and rising healthcare spending but faces challenges from declining consumption, intense competition, and stricter regulations, leading to slowing store growth and increasing industry concentration - As of the end of 2024, the national population aged 60 and above accounted for 22.0%, projected to exceed 400 million by 2035, surpassing 30% and entering a phase of severe aging[34] - Total health expenditure increased from RMB 4.097 trillion in 2015 to RMB 9.058 trillion in 2023, with per capita health expenditure rising from RMB 2,962.18 to RMB 6,425.32[35] - By the end of 2024, the total number of pharmacies nationwide was approximately 675,000, with a significant slowdown in growth; Q1 2025 saw a net closure of 3,166 stores, accelerating industry consolidation[39][40] - In 2024, national retail pharmaceutical sales reached RMB 574 billion, growing 3.7% YoY; the physical pharmacy retail market declined 1.8% YoY, with health products, medical devices, and traditional Chinese medicine decoction pieces experiencing a downturn[41] - The proportion of retail pharmacies in total pharmaceutical sales increased from 23.4% in 2019 to 30.8% in 2024[42] (3) Company's Industry Position The company holds a prominent position in pharmaceutical retail, operating across 21 provinces with strong South China presence, recognized as a 'China Well-known Trademark' and ranked first in the '2024-2025 China Pharmacy Value List Top 100' - The company's operations cover 21 provinces (including autonomous regions and municipalities) such as Guangdong, Guangxi, Henan, and Heilongjiang[46] - 'Dashenlin' has been recognized as a 'China Well-known Trademark' and 'Guangdong Famous Trademark'[46] - The company was ranked first in the '2024-2025 China Pharmacy Value List Top 100'[46] Discussion and Analysis of Operating Performance Despite a complex industry, H1 2025 saw revenue reach RMB 13.52 billion (+1.33%) and net profit attributable to parent RMB 798 million (+21.38%), driven by strategic store expansion, new retail, and digital transformation - In H1 2025, the company achieved operating revenue of RMB 13.52 billion, a 1.33% YoY increase[48] - Net profit attributable to shareholders of the listed company was RMB 798 million, a 21.38% YoY increase[48] - Net profit attributable to shareholders of the listed company after deducting non-recurring items was RMB 788 million, a 19.73% YoY increase[48] 1、Continuous Store Expansion, Driven by Self-Built + M&A + Direct-Franchise The company expanded its store network to 16,833 across 21 provinces via 'self-built + M&A + direct-franchise' model, opening 152 new self-built and 413 franchised stores, while closing 285 for optimization - As of the end of the reporting period, the company's store count reached 16,833, comprising 10,370 direct stores and 6,463 franchised stores[48] - During the reporting period, the company opened 152 new self-built stores, 0 acquired stores, 413 franchised stores, and closed 285 stores[48] - The company has covered most provincial-level administrative regions in mainland China (21 provinces), with national layout largely achieved, and will subsequently focus on increasing market share in existing provinces[49] 2、Rapid Growth in New Retail, Accelerating Concentration The company actively developed an integrated new retail model, achieving 93.54% O2O service coverage and building a 'public-private-full domain' customer ecosystem, driving rapid online business growth and market concentration - As of H1 2025, the company's O2O medication delivery service coverage reached 93.54% of its stores[51] - The company built an exclusive member health community via the 'Dashenlin Health' mini-program, offering chronic disease management and medication consultation services to boost user repurchase rates[51] 3、Continuous Prescription Outflow, Company Actively Undertakes Responding to prescription outflow, the company actively built a prescription承接 system, with 97.95% of direct stores obtaining medical insurance qualifications, and is exploring a 'medical + pharmacy + wellness + examination + insurance' business closed-loop - The proportion of retail pharmacies in total terminal sales increased from 23.4% in 2019 to 30.8% in 2024[53] - As of the end of the reporting period, the company's direct stores include 278 DTP professional pharmacies, 10,157 medical insurance designated stores for personal accounts, and 2,982 designated stores for various pooled reimbursement schemes[53] - The company actively explores value-added models combining pharmaceutical and insurance businesses, establishing a 'medical + pharmacy + wellness + examination + insurance' business closed-loop[54] 4、Agile and Efficient Supply Chain System Gradually Taking Shape, Further Enhancing Competitive Advantage The company developed an agile supply chain, emphasizing affordability with a 'triple difference refund' policy, launching 15 best-selling items and 375 new products, and implementing intelligent replenishment systems to boost efficiency - The company promotes 'triple difference refund if found cheaper' to consumers, with internal price competitiveness as a key performance indicator[54] - The company developed 15 best-selling products such as Sildenafil and Bear Gallbladder Powder, introduced 375 new varieties (excluding DTP), and eliminated 1,532 varieties[55] - The company formed strategic partnerships with 25 brand manufacturers, securing exclusive products, preferential marketing resources, and lowest supply costs[55] - Intelligent replenishment, distribution, and return systems were launched and rolled out to almost all stores and warehouses, significantly reducing stock-out rates and inventory turnover days[56] 5、Rapid Increase in Member Count, Gradually Improving Precision Marketing System The company's member base grew to over 120 million, with 7.6 million new members added, leveraging a SCRM-based platform for integrated online-offline management and AI-driven precision marketing, delivering 183 million health consultations - The company has over 120 million members, including 63.82 million active members (within two years), with 7.6 million new members acquired during the reporting period[56] - The company developed a SCRM (Social Customer Relationship Management)-based member platform, with card issuance accounting for over 80% during the reporting period[57] - Leveraging big data analytics and AI models, the company delivered 183 million personalized care and health consultations to members[57] 6、Digital Transformation Journey Showing Initial Results The company's digital transformation shows initial success, with over ten company-level projects supporting efficient operations for thousands of stores, including HarmonyOS adaptation and the launch of 'AI Xiaocan' with DeepSeek-R1 for enhanced customer service and efficiency - The company implemented over ten company-level digital projects, including product digitalization, smart supply chain, operational intelligence, franchise service intelligence, and financial intelligence[58] - The company's internal office system was the first to complete native HarmonyOS adaptation; its product 'Dashenlin Encyclopedia' won the 'HarmonyOS Experience Enhancement Award', and 'Canyihao' received the 'HarmonyOS Application Listing Award'[59] - The company launched 'AI Xiaocan', integrated with DeepSeek-R1, providing instant Q&A, customer service responses, and intelligent analysis, reducing query response time by 80%[59][60] Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness stems from its national strategy, direct-franchise model, scale economies, digital operations, agile supply chain, professional services, proprietary logistics, strong brand, and diverse talent, ensuring leadership and sustainable growth - The company has become China's largest chain pharmacy by scale, with 16,833 stores (including 6,463 franchised stores) as of the end of the reporting period[62] - The company's 'three-pronged approach' of self-building, M&A, and direct-franchise drives industry-leading store expansion speed and scale[63] - The company was ranked first in the '2024-2025 China Pharmacy Value List Top 100'[63] - The company established an IT team of nearly 400 people, primarily focusing on self-developed digital strategies, deploying DeepSeek locally, and launching 'AI Xiaocan'[65] - The company boasts over 1,000 private label products, with traditional Chinese medicine and ginseng/tonic products as specialties, sourced directly from origins and processed in self-built factories[66] - The company has over 170 MTM pharmacists specially trained and certified by China Pharmaceutical University, and over 1,500 chronic disease service personnel with internal star ratings[69] - The company operates 37 warehouses nationwide with a total storage area of 415,600 square meters, achieving over 80% self-delivery volume and a 99% total warehouse fulfillment rate[69][71] - The company signed strategic cooperation agreements with nearly 200 universities nationwide to deepen industry-education integration and implemented diversified incentive mechanisms such as equity incentives and employee stock ownership plans[72][75] (1) National Strategy Fully Advanced, Pioneering Direct-Franchise Model, Greater Development Space Adhering to its 'deep cultivation in South China, national layout' strategy, the company expanded to 16,833 stores across 21 provinces via self-building, M&A, and its pioneering direct-franchise model, becoming China's largest chain pharmacy - The company adheres to its core development strategy of 'deep cultivation in South China, national layout', promoting regional scaling and refined management[62] - The company pioneered the direct-franchise model in 2019, accelerating store expansion and rapidly boosting scale[62] - As of the end of the reporting period, the company operates a total of 16,833 stores (including 6,463 franchised stores), with operations covering 21 provinces[62] - During the reporting period, the company's main business sales grew by 0.79%, with Central China growing 9.15%, East China 4.02%, and Northeast, North, Northwest, and Southwest regions growing 7.81%[62] (2) Economies of Scale Gradually Becoming Prominent As China's largest chain pharmacy by revenue and store count, the company's scale enhances bargaining power and spreads costs across operations, steadily improving profitability - The company has become China's largest chain pharmacy by revenue and store count, ranking first in the 2024-2025 China Pharmacy Value List[63] - Economies of scale have strengthened the company's bargaining power with suppliers and spread various operating costs, driving improved profitability[63] (3) Digital and Intelligent Empowerment of Operations and Refined Management The company integrated digitalization across all business segments, building a comprehensive digital ecosystem for online operations, enhancing decision-making efficiency and management quality through mobile tools, dashboards, and AI-driven human-machine collaboration - The company built a comprehensive digital ecosystem, achieving full online integration of employees, products, customers, and management[64] - The dual mid-platform architecture of business and data platforms was perfected, resolving data silo issues[64] - Digital tools such as automatic replenishment, intelligent site selection, and smart promotion systems were launched, reducing stock-out rates and inventory turnover days[65] - DeepSeek was deployed locally, and 'AI Xiaocan' integrated with DeepSeek-R1 was launched, providing intelligent Q&A and customer service analysis functions[65] - The company established an IT team of nearly 400 people, primarily focusing on self-developed solutions to drive its digital strategy[66] (4) Agile and Efficient Supply Chain System The company established an agile supply chain with a product management system, introducing new products, developing over 1,000 private label brands, and partnering with over 10,000 manufacturers to ensure cost-effectiveness and competitive pricing - The company established a product management system centered on product insight and strategy, tender and procurement, operational planning, and display planning[66] - Over 1,000 private label products cover categories such as pharmaceuticals, traditional Chinese medicine and ginseng/tonics, health products, and medical devices[66] - The company has established stable, win-win partnerships with over 10,000 manufacturers, with a total of over 100,000 SKUs[67] - Procurement costs are reduced through tenders and volume-based procurement, with retail prices adjusted promptly based on market changes[67] (5) Professional Service Capabilities The company prioritizes public health with 'quality first, standardized operations', offering professional pharmaceutical services like prescription review and health screening, and collaborates with the Guangdong Pharmaceutical Association to advance MTM services and chronic disease management with over 170 MTM pharmacists and 1,500 chronic disease service personnel - The company provides professional pharmaceutical services including prescription review, health screening, consultation, medication reminders, and patient medication education[68] - Collaborating with the Guangdong Pharmaceutical Association to promote Medication Therapy Management (MTM) services, deeply exploring vertical disease management for nine major conditions[68] - The company has over 170 MTM pharmacists specially trained and certified by China Pharmaceutical University, and over 1,500 chronic disease service personnel with internal star ratings[69] - Over 1 million blood pressure, blood glucose, and uric acid tests have been conducted, along with over 40,000 patient education and training activities[69] (6) Cost-Reducing and Efficiency-Enhancing Proprietary Logistics and Distribution System, Ensuring Pharmaceutical Product Quality and Safety The company established a 'group + regional + local' warehouse network with 37 warehouses and 415,600 square meters of storage, achieving over 80% self-delivery. Automation and AI enable smart warehousing, boosting efficiency, reducing costs, and ensuring full traceability - The company established a 'group warehouse + regional warehouse + local warehouse' logistics network, operating 37 warehouses nationwide with a total storage area of 415,600 square meters[69] - Self-delivery volume accounts for over 80% of total deliveries, ensuring timely medication delivery even in extreme circumstances[69] - The logistics center achieved smart warehousing through self-development and collaboration, investing in automation equipment and AI technology, resulting in a 99% total warehouse fulfillment rate and a dispatch error rate below 0.008%[70][71] (7) Excellent Brand Recognition and Influence The company continuously enhances the 'Dashenlin' brand through quality, affordability, professional services, and social responsibility, becoming China's largest chain pharmacy by store and sales scale, earning numerous awards - 'Dashenlin' has been recognized as a 'China Well-known Trademark' and 'Guangdong Famous Trademark'[71] - The company has become China's largest chain pharmacy by store and sales scale, receiving honors such as 'First Place in the 2024-2025 China Pharmacy Value List'[71] - The company actively participates in public welfare, ensures public health safety, and received multiple social responsibility and brand value awards during the reporting period[72] (8) Diversified Talent Acquisition, Training, and Incentive System, Empowering Sustainable Development The company attracts talent through diverse channels, including partnerships with nearly 200 universities, and has upgraded its talent development system with comprehensive training, mentorship, and diversified incentives like equity plans, ensuring sustainable growth - The company signed strategic cooperation agreements with nearly 200 universities nationwide to deepen industry-education integration and recruit high-potential graduates for its management trainee program[72] - In 2025, the talent development system was fully upgraded, reshaping management mechanisms across all stages: assessment, selection, cultivation, utilization, and retention[73] - The company established four training dimensions—leadership, operational capability, professional skills, and general competencies—and independently developed over 5,000 'three-capability' learning courses[74] - The company implemented diversified compensation incentive systems, including equity incentives, employee stock ownership plans, and excess dividends, to attract and retain outstanding talent[75] Key Operating Performance During the Reporting Period This section analyzes H1 2025 key operating performance, including financial statement changes, business composition, store operations, and medical insurance status, showing revenue and cost growth, reduced sales expenses, increased operating cash flow, and expanded store network Changes in Financial Statement Items for H1 2025 | Item | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 13,522,572,876.63 | 13,345,351,847.62 | 1.33 | | Operating Cost | 8,808,207,054.22 | 8,688,674,244.66 | 1.38 | | Selling Expenses | 2,909,772,401.25 | 3,025,466,027.02 | -3.82 | | Administrative Expenses | 581,194,751.86 | 573,769,223.24 | 1.29 | | Financial Expenses | 82,040,820.79 | 103,356,100.52 | -20.62 | | R&D Expenses | 29,398,996.84 | 29,870,124.21 | -1.58 | | Net Cash Flow from Operating Activities | 2,910,420,631.30 | 1,767,382,620.57 | 64.67 | | Net Cash Flow from Investing Activities | -237,972,527.08 | -1,541,729,353.11 | 84.56 | | Net Cash Flow from Financing Activities | -2,353,536,570.39 | -390,404,557.06 | -502.85 | - Operating revenue increased by 1.33%, primarily due to expanded operating scale, organic store growth, and an increase in store count[76] - Selling expenses decreased by 3.82%, mainly due to digital upgrades and improved operational efficiency[78] - Net cash flow from operating activities increased by 64.67%, primarily due to sales revenue growth, accelerated collection of receivables, and supply chain optimization[78] H1 2025 Main Business by Industry, Product, and Region | Category | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin (%) | YoY Change in Operating Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | Retail | 11,004,990,683.70 | 6,868,834,525.55 | 37.58 | -0.54 | | Franchise and Distribution | 2,136,485,740.20 | 1,937,010,706.53 | 9.34 | 8.26 | | By Product | | | | | | Chinese and Western Medicines | 10,402,771,965.44 | 7,264,311,163.27 | 30.17 | 4.45 | | Traditional Chinese Medicine and Ginseng/Tonics | 1,318,835,460.79 | 758,829,476.23 | 42.46 | -12.96 | | Non-Pharmaceutical Products | 1,419,868,997.67 | 782,704,592.58 | 44.87 | -9.19 | | By Region | | | | | | South China Region | 8,383,816,342.33 | 5,385,508,061.22 | 35.76 | -2.57 | | Central China Region | 1,308,377,140.75 | 968,250,035.15 | 26.00 | 9.15 | | East China Region | 1,049,716,595.35 | 718,996,631.68 | 31.51 | 4.02 | | Northeast, North, Southwest, and Northwest Regions | 2,399,566,345.47 | 1,733,090,504.03 | 27.77 | 7.81 | - As of June 30, 2025, the company operates 16,833 stores (including 6,463 franchised stores) with a total operating area of 889,512 square meters[82] - In H1 2025, the company had a net increase of 280 stores, with 152 new openings, 413 franchised stores, and 285 closures[82] - As of June 30, 2025, 10,157 of the company's 10,370 direct chain stores have obtained various 'medical insurance designated retail pharmacy' qualifications, accounting for 97.95%[84] (一) Main Business Analysis H1 2025 main business revenue grew 0.79%, with retail slightly down 0.54% and franchise/distribution up 8.26%; Central China revenue grew 9.15%. The company added 280 net stores, achieving 97.95% medical insurance coverage H1 2025 Main Business by Industry, Product, and Region | Category | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin (%) | YoY Change in Operating Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | Retail | 11,004,990,683.70 | 6,868,834,525.55 | 37.58 | -0.54 | | Franchise and Distribution | 2,136,485,740.20 | 1,937,010,706.53 | 9.34 | 8.26 | | By Product | | | | | | Chinese and Western Medicines | 10,402,771,965.44 | 7,264,311,163.27 | 30.17 | 4.45 | | Traditional Chinese Medicine and Ginseng/Tonics | 1,318,835,460.79 | 758,829,476.23 | 42.46 | -12.96 | | Non-Pharmaceutical Products | 1,419,868,997.67 | 782,704,592.58 | 44.87 | -9.19 | | By Region | | |