LBX(SH:603883) Sou Hu Cai Jing·2025-07-09 02:18Core Viewpoint - The controlling shareholder of Lao Baixing, the Lao Baixing Pharmaceutical Group, has engaged in a series of share pledges and reductions, contradicting its stated goal of reducing pledge rates while the company faces significant profit declines in 2024 [1][4][6]. Financial Performance - In 2024, Lao Baixing reported a revenue of 223.58 billion yuan, a decrease of 0.36% year-on-year, and a net profit attributable to shareholders of 5.19 billion yuan, down 44.13% year-on-year, marking the worst annual report since its listing [6][7]. - The company's gross profit margin increased to 33.17%, up 0.62 percentage points year-on-year, despite the profit decline [6][7]. - Operating cash flow decreased by 25.77% to 20.26 billion yuan in 2024, with significant liabilities due within a year [7]. Shareholding and Pledge Activities - The Lao Baixing Pharmaceutical Group pledged 32.11 million shares to China Construction Bank, raising the pledge ratio to 62.04% of its holdings, which is 15.65% of the total shares [2][3]. - The group has engaged in multiple rounds of share pledging and unpledging since the beginning of the year, indicating a reliance on this financing method to alleviate short-term cash flow pressures [3][4]. Industry Context - The retail pharmacy industry is undergoing significant changes, with approximately 39,000 pharmacies closing in 2024, leading to a closure rate of 5.7% [8]. - Lao Baixing plans to open 1,000 new stores in 2025, primarily through franchise models, while shifting focus towards DTP pharmacies to adapt to market changes [9][10]. Strategic Shifts - The company is transitioning from a rapid expansion model to a focus on converting existing stores to franchise operations and enhancing its DTP pharmacy presence [8][9]. - DTP pharmacy sales reached 1.661 billion yuan in 2024, reflecting an 8% increase year-on-year, indicating a potential growth area despite challenges [9][10].