Yixintang Pharmaceutical (SZ:002727) Qi Lu Wan Bao·2025-10-15 05:34Core Viewpoint - YXHT (Yixin Tang) has faced multiple administrative penalties for non-compliance with medical insurance fund usage regulations, indicating significant issues in its operational management and compliance practices [1][3][4]. Regulatory Penalties - On October 12, 2025, YXHT's Deqin He Xiang Zhong Lu store was fined for excessive prescriptions, failure to verify insurance credentials, and selling prescription drugs without a prescription, resulting in a total penalty of 3,740.95 yuan (including a refund of 1,246.65 yuan and a fine of 2,493.30 yuan) [1][2]. - The company has been penalized multiple times in recent years, with a total of 10.7 million yuan related to non-compliance issues identified across various stores [6][12]. Financial Performance - YXHT's financial performance has deteriorated significantly, with net profits dropping from 5.49 billion yuan in 2023 to 1.14 billion yuan in 2024, marking declines of 45.60% and 79.23% year-on-year, respectively [14]. - As of June 30, 2025, YXHT operated 11,372 stores, a net decrease of 126 stores since the beginning of the year, with a revenue of 89.14 billion yuan, down 4.20% year-on-year [15]. Business Transformation - YXHT is undergoing a transformation to adapt to changing market conditions, focusing on a dual-track model that includes 30% professional pharmacies and 70% diversified retail stores [16][21]. - The company plans to renovate 1,000 drugstore locations by the end of 2025, with 500 in Yunnan and 500 in other provinces, aiming to enhance customer demand through an expanded product range [21]. Compliance and Regulatory Environment - The company has been under scrutiny from the National Medical Insurance Bureau, which has highlighted issues such as false prescriptions and excessive drug dispensing, necessitating stricter self-management and compliance measures [13][14]. - New regulations effective April 1, 2025, require electronic prescriptions for all dual-channel pharmacies, complicating operational processes and impacting customer experience [16].