Jointown(SH:600998) Mei Ri Jing Ji Xin Wen·2025-05-23 14:44Core Viewpoint - The pharmaceutical distribution industry is facing significant challenges, including a wave of pharmacy closures, but Jiuzhoutong is adapting by expanding its business model and focusing on new markets [2][5]. Company Overview - Jiuzhoutong, a leading pharmaceutical distribution company, held its 2024 annual shareholder meeting on May 23, 2023, in Wuhan, attracting several small shareholders [2]. - The company operates primarily through a franchise model for its pharmacies, which minimizes the impact of individual pharmacy profitability on the overall company [3][6]. Financial Performance - For 2024, Jiuzhoutong expects a 15.33% year-on-year increase in net profit to 2.507 billion yuan, while revenue is projected to rise only slightly by 1.11% [3]. - The company reported a significant growth in its medical aesthetics business, achieving sales revenue of 851 million yuan, a 120.47% increase year-on-year, with a compound annual growth rate of 111.64% from 2022 to 2024 [9]. Market Challenges - The pharmaceutical industry is experiencing unprecedented challenges, including a decline in the number of retail pharmacies, with closures reaching 14,114 in the fourth quarter of 2024 [5]. - Despite these challenges, Jiuzhoutong plans to increase its pharmacy count to over 33,500 by the end of the year, with a current total of 29,331 stores [5][6]. Strategic Initiatives - Jiuzhoutong is focusing on expanding its presence in the medical device sector and targeting lower-tier markets through acquisitions of local pharmaceutical distribution companies [9]. - The company has recently participated in the restructuring of *ST Meigu, investing 673 million yuan to acquire shares, which aligns with its medical aesthetics business [7][9]. Accounts Receivable Management - Jiuzhoutong faces challenges with accounts receivable, with values reported at 27.576 billion yuan, 24.72 billion yuan, and 29.477 billion yuan for the years ending 2022, 2023, and 2024, respectively [9]. - The company manages credit and collection through a dedicated credit management department, ensuring stable cash flow from large public hospitals [9].