Cai Jing Wang·2025-08-29 14:30Core Viewpoint - The pharmaceutical distribution industry in China is experiencing a significant divergence in performance between regional and national companies, influenced by ongoing healthcare reforms and market dynamics. Group 1: Performance of Regional Companies - Liuyao Group, a leading regional pharmaceutical distributor, reported a decline in both revenue and net profit for the first half of 2025, with revenue at 10.30 billion yuan, down 3.21% year-on-year, and net profit at 429 million yuan, down 7.52% [3] - The decline in Liuyao Group's performance is attributed to stricter control over drug expenditures by medical institutions and the impact of centralized procurement policies, leading to reduced sales and profit margins [3][4] - Other regional companies, such as Renmin Tongtai, also faced challenges, with total revenue of 5.15 billion yuan and a significant drop in wholesale business revenue due to intensified competition and procurement reforms [3] Group 2: Performance of National Companies - National distributor Jiuzhoutong reported a revenue increase of 5.10% year-on-year, reaching 67.63 billion yuan, and a net profit increase of 19.70% [2] - Jiuzhoutong's growth is driven by robust performance in its digital pharmaceutical distribution and supply chain business, which generated 67.63 billion yuan, up 6.04% [2] - The company also benefited from the issuance of public REITs, which added 438 million yuan to its net profit, showcasing a successful strategy to enhance cash flow and reduce reliance on traditional debt financing [8] Group 3: Strategic Shifts and Future Outlook - Liuyao Group is transitioning from a traditional distributor to a health service solution provider, aiming to create a comprehensive health ecosystem that includes production, distribution, sales, and health management [7] - North University Medicine, heavily reliant on its partnership with Peking University International Hospital, faces significant revenue and profit declines due to the expiration of its service contract, projecting a revenue drop of approximately 600 million yuan in the second half of 2025 [4] - The industry is witnessing a trend towards diversification and digital transformation, with companies exploring new marketing and service models to adapt to the competitive landscape [6][5]