Sinopharm Accord(000028) 北京商报·2025-04-08 12:54Core Viewpoint - The company reported a significant decline in net profit for 2024, attributed to a large goodwill impairment and challenges in the retail sector due to policy changes and increased competition [1][5][6]. Financial Performance - In 2024, the company achieved operating revenue of 74.38 billion yuan, a decrease of 1.46% compared to 2023 [2][3]. - The net profit attributable to shareholders was 642.49 million yuan, down 59.83% year-on-year [2][3]. - The net profit after excluding non-recurring gains and losses was 581.18 million yuan, a decline of 62.08% from the previous year [2][3]. - Basic and diluted earnings per share fell to 1.15 yuan, a drop of 59.93% [2][3]. - The weighted average return on equity decreased to 3.67%, down 5.89 percentage points from 2023 [2]. Business Segments - The distribution segment generated revenue of 52.98 billion yuan, a year-on-year increase of 1.98%, while net profit in this segment was 922 million yuan, down 12.74% [3]. - The retail segment, represented by Guoda Pharmacy, reported revenue of 22.36 billion yuan, a decline of 8.41%, and a net loss of 1.07 billion yuan, a decrease of 388.83% [4][5]. Goodwill Impairment - The company recorded a goodwill impairment of 9.7 billion yuan, which reduced net profit by 561 million yuan [5][6]. - The impairment was due to significant discrepancies between expected and actual performance of acquired assets, influenced by changes in consumer behavior and increased competition [5][6]. Store Closures - The number of stores decreased significantly, with Guoda Pharmacy closing over 1,270 direct-operated stores, resulting in a total of 9,569 stores by the end of 2024 [1][7]. - The strategic focus shifted from "scale growth" to "high-quality development," with measures in place to address losses [7][8]. Industry Context - The retail pharmacy sector is experiencing intense competition, with over 700,000 retail pharmacies in China, leading to a saturation of the market [8]. - The company anticipates further store closures and aims to improve single-store efficiency while adapting to the competitive landscape [8].