LBX(SH:603883)2023-10-31 16:00Financial Performance - In the first three quarters of 2023, the company achieved revenue of CNY 16.042 billion, a year-on-year increase of 16.44%[4] - The retail pharmacy business accounted for 81.64% of total revenue, growing by 12.44% year-on-year, while the franchise and distribution business grew by 38.88% to represent 17.51% of total revenue[4] - The company reported a significant recovery in performance in October, following pressure in July and August due to healthcare reform impacts[5] - The company’s sales growth was supported by new store contributions of 2.98%, same-store sales growth of 4.6%, and acquisitions contributing approximately 4.34%[4] Store Expansion - The company opened 2,709 new stores in the first three quarters, bringing the total number of stores to 13,065, with a market share in ten provinces, including four with the highest market share[5] - The franchise business expanded rapidly, adding 1,230 new stores this year, with delivery sales reaching CNY 147 million, a 30% increase year-on-year[5] - The company added 1,230 franchise stores in the first three quarters of 2023, bringing the total to 4,120 franchise stores, which accounts for 31.5% of total stores[14] - The company plans to open 3,500 new stores annually over the next three years, maintaining a growth rate of approximately 25%[16] Digital and Operational Strategies - The company is focusing on a "development focus" strategy and "digital intelligence" strategy to enhance operational efficiency and market penetration[5] - The company achieved online sales of 1.49 billion, representing a year-on-year growth of 60% in the first three quarters of 2023[7] - As of the end of the reporting period, the company had 10,005 O2O delivery service stores and 632 24-hour stores[7] - The company has established a digital operation team specifically for outpatient coordination, with three internet hospitals and over ten external cooperative internet hospitals[12] Customer Engagement and Services - The total number of members reached over 83.12 million, with an increase of 3.89 million members during the reporting period[7] - The company aims to leverage policy benefits as more stores are included in the coordinated healthcare system, enhancing customer traffic and sales[5] - The company’s slow disease management services have recorded over 12 million patient files and 51 million self-testing instances[7] Competitive Positioning - The company aims to enhance its core competitiveness through improved brand recognition and supply chain management in response to franchise competition[14] - The company is committed to building a multi-format, full-industry chain health service ecosystem to drive growth[5] - The company’s gross margin is expected to improve through increased self-owned brand product offerings and enhanced digital management[17] - The company’s medical insurance revenue is on the rise, with medical insurance sales accounting for 54.9% of the sales in stores that can process outpatient insurance[11] Healthcare Coordination - The company has implemented outpatient coordination policies in 14 out of 20 provinces, with 2,893 stores eligible for coordination, representing 22.14% of total stores[6]