LBX(SH:603883) Jing Ji Guan Cha Wang·2025-08-26 09:48Core Viewpoint - The financial performance of the leading chain pharmacy, Lao Bai Xing, has shown a decline in both revenue and net profit for the first half of 2025, indicating challenges in the retail pharmacy sector amid increased competition and operational changes [1][3]. Financial Performance - In the first half of 2025, the company achieved revenue of 10.774 billion yuan, a year-on-year decrease of 1.51% [1]. - The net profit attributable to shareholders was 398 million yuan, down 20.86% compared to the previous year [1]. - The gross profit margin for the main business was 33.08%, a decline of 1.24 percentage points year-on-year [1]. Store Expansion and Market Strategy - The company is actively expanding into lower-tier markets, with 87% of new stores opened in cities below the prefecture level during the first half of 2025 [2]. - As of the end of the reporting period, stores in cities below the prefecture level accounted for 77% of the total store count [2]. - The number of franchise stores increased by 457, reaching a total of 5,601 [2]. Management Changes - The company experienced significant management turnover in 2025, with both the president and vice president resigning [2]. - The founder, Xie Zilong, has taken on the roles of both chairman and president following these departures [2]. - The high turnover rate in the executive team has raised concerns about stability, with multiple resignations noted in recent years [2]. Overall Industry Context - The overall performance of major listed chain pharmacies, including Lao Bai Xing, has been declining, with a notable drop in revenue and net profit for the year 2024 [3]. - The company’s major shareholder announced a significant share reduction plan, which was partially executed before being terminated [3]. - From June 20 to July 30, 2025, the major shareholder reduced their holdings by 18.11 million shares, amounting to 2.38% of the total shares, generating over 340 million yuan in cash [3].