JZJ(SH:605266)2024-04-26 11:17Financial Performance - The net profit for 2023 is reported at RMB 203,661,794.59, with a proposed distribution of cash dividends amounting to RMB 165,570,813.37 (including tax), translating to RMB 12.85 per 10 shares[6]. - The company plans to allocate 10% of the net profit, amounting to RMB 20,366,179.46, to statutory reserves[6]. - The company's operating revenue for 2023 reached 9,080.70 million, a 20.84% increase compared to 7,514.44 million in 2022[24]. - The net profit attributable to shareholders for 2023 was 414.41 million, reflecting a 10.72% growth from 374.29 million in 2022[24]. - The net profit after deducting non-recurring gains and losses was 4.00 billion, with a growth rate of 68.70%[36]. - The company reported a basic earnings per share of 3.23 yuan, an increase of 8.75% from 2.97 yuan in 2022[26]. - The annual revenue for 2023 increased by 20.84%, reaching 90.81 billion, while the net profit attributable to shareholders grew by 10.72%[34]. - The gross profit margin for the year was 35.88%, a decrease of 0.26% compared to the previous year, while the gross profit amount increased by 19.97%[29]. - The total assets at the end of 2023 were 9,948.93 million, up 3.16% from 9,644.48 million at the end of 2022[25]. - The company achieved a total revenue of 9.08 billion RMB, representing a year-on-year increase of 20.84%[98]. Store Expansion and Operations - The company added 1,061 new stores in the reporting period, resulting in a total of 5,116 stores, marking a growth rate of 26.17%[28]. - The number of stores expanded from 2,130 in early 2021 to 5,116 by the end of 2023, representing a growth of 140.19%[36]. - The company has opened 389 pharmacies with outpatient coordination qualifications, representing 8.14% of total stores, and 4,343 pharmacies have various medical insurance qualifications, accounting for 90.91% of the total[76][78]. - The company has expanded its store network to 5,116 locations, achieving a net increase of 1,061 stores, representing a growth rate of 26.17% compared to the beginning of the year[71]. - The number of pharmacy stores in Yunnan reached 2,759, with a year-on-year growth of 15.25%, while the number of stores in Hebei increased by 25.72% to 479[70]. - The company has achieved a significant increase in store numbers in Chongqing, with a growth rate of 87.97%, and in Sichuan, with a growth rate of 51.89%[70]. Market Strategy and Focus - The company is focusing on enhancing professional services and improving multi-channel operational capabilities in response to market uncertainties[27]. - The company aims to strengthen its market presence and improve customer service through integrated operations and cost control strategies[34]. - The company is adapting to industry changes by reducing reliance on medical insurance and shifting towards professional services[47]. - The company is focusing on enhancing brand partnerships and expanding its market share in response to changing consumer behaviors[101]. - The company plans to continue expanding its store network through both self-built and acquisition strategies, particularly in regions like Yunnan and Hebei, which are seen as profit centers[55]. - The company is committed to providing a diversified and high-quality product structure, focusing on category management and professional services to drive sales growth[55]. Online and E-commerce Growth - The online business has been growing rapidly, with over 600 live streaming events conducted in 2023, attracting a cumulative audience of over 6 million[63]. - The company has developed a multi-channel marketing platform, integrating online and offline services to meet customer demands for convenience[61]. - The total revenue from online channels reached 216,428.18 million, a year-on-year increase of 54.58%, accounting for 23.83% of total revenue, up 5.20% from the previous year[85]. - Online channel revenue accounted for 23.83% of total revenue, reflecting the company's focus on balancing online and offline sales[110]. - The self-operated platform business revenue grew by 63.75%, totaling 69,005.44 million in 2023, up from 42,140.46 million in 2022[83]. Financial Management and Investments - The net cash flow from operating activities was 1,024.41 million, a decrease of 13.96% from 1,190.60 million in 2022[24]. - The net cash flow from investing activities was -522,542,867.78 RMB, a significant improvement from -2,498,650,998.36 RMB in the previous year[90]. - The net cash flow from financing activities decreased by 157.35%, from 1,156,164,440.53 RMB to -663,092,170.45 RMB[90]. - The company has implemented a standardized chain management system to enhance operational efficiency and service quality across its stores[64]. - The company has established a logistics distribution system based on a "Yunnan central warehouse + provincial regional sub-warehouses" model, achieving high service levels in sorting efficiency, delivery accuracy, and order response time[67]. Governance and Compliance - The company emphasizes compliance with legal and regulatory requirements in its information disclosure practices, ensuring transparency and fairness[170]. - The company has established a comprehensive governance structure, including specialized committees for strategy, audit, nomination, and remuneration[168]. - The company held 4 shareholder meetings during the reporting period, ensuring equal treatment of all shareholders and protecting minority shareholder rights[169]. - The board of directors consists of 7 members, including 3 independent directors, and held 7 meetings during the reporting period to ensure effective governance[169]. - The supervisory board, comprising 3 members, conducted 6 meetings to oversee the company's operations and protect shareholder interests[170]. Employee and Talent Management - The company has established 47 training bases to improve the management and professional skills of its workforce[88]. - The company has a total of 16,649 employees, with 880 in the parent company and 15,769 in major subsidiaries[199]. - The sales personnel constitute the largest group with 14,130 employees, followed by administrative personnel at 2,226[199]. - The company is focusing on talent development and incentive systems, implementing a "3+N" personnel management strategy to boost employee engagement and performance[157]. - The company has implemented a compensation policy based on the 3P+M principle, focusing on job value, work performance, and personal capability[200]. Risk Management - The company has not identified any significant risks that could materially affect its operations during the reporting period[8]. - The company faces risks from increasing customer demand and intensified market competition, necessitating continuous improvement in service capabilities and efficiency[159]. - The company is addressing industry policy risks by enhancing internal compliance management and adapting to regulatory changes[161]. - The acquisition project poses significant risks, including regional operational challenges due to varying economic development levels and regulatory policies across different areas in China[165]. - Future profitability of the acquired company is subject to various factors, including policy changes and market demand, which could adversely affect the company's operating performance[166].