Sinopharm Accord(SZ:000028) Guang Zhou Ri Bao·2025-04-17 01:36Core Viewpoint - The pharmaceutical retail industry is undergoing significant adjustments, with major players like Guoyao Yizhi experiencing declines in revenue and profit due to increased competition and the impact of e-commerce [2][3]. Company Summary - Guoyao Yizhi reported a substantial decline in net profit for the year 2024, primarily due to challenges faced by its retail segment, Guoda Pharmacy, which closed 1,273 direct stores and 389 franchise stores, reducing its total store count to 9,569 [2]. - The gross margin of Guoyao Yizhi's retail business decreased from 25.08% in 2022 to 22.95% in 2024, indicating a downward trend despite previous expansions [2]. - The company acknowledged that the industry is in a deep adjustment phase, facing challenges such as declining customer traffic and increased store closures [2]. Industry Summary - The retail pharmacy sector is experiencing a slowdown in store expansion, with companies like Laobaixing, Jianzhijia, and Yixintang also reducing their expansion plans [2]. - According to data from Zhongkang Pharmacy, the total number of pharmacies in China reached 700,881 by the fourth quarter of 2024, marking a 2.3% year-on-year increase but a 0.5% quarter-on-quarter decline, indicating the first negative growth in recent years [3]. - The total number of store closures in 2024 was 39,228, resulting in a closure rate of approximately 5.76%, up from 3.8% in 2023, highlighting an accelerating trend of store closures [3]. - The retail drug market is projected to experience overall negative growth in 2024, with only slight growth in specific drug categories, driven by stricter regulatory requirements and increased competition from e-commerce [3].