LZYY(SH:603368) Shang Hai Zheng Quan Bao·2025-10-29 21:40Core Viewpoint - The company reported a decline in revenue and net profit for the first three quarters of 2025, primarily due to the impact of policy changes on its pharmaceutical wholesale business, while retail and industrial segments showed resilience and growth potential [3][4]. Financial Performance - For the first nine months of 2025, the company achieved operating revenue of 15.758 billion yuan, a year-on-year decrease of 1.47% [3]. - The net profit attributable to shareholders was 646 million yuan, down 9.81% compared to the previous year [3]. - The decline in revenue and profit was attributed to reduced sales in the hospital pharmaceutical sector due to centralized procurement and hospital drug usage ratio controls [3]. Business Segment Analysis - The retail segment continued to grow by enhancing differentiated product advantages and expanding services in chronic disease management and specialty health services [3]. - The industrial segment maintained growth through accelerated market expansion outside the province and ongoing research into traditional Chinese medicine products [3][6]. - Despite challenges in gross margins due to centralized procurement and increased promotional expenses, the industrial segment's performance is expected to improve with optimized product structure and cost reduction efforts [3][6]. Investment and Innovation - The company established a wholly-owned subsidiary to invest in overseas innovative pharmaceutical companies, aiming to enhance its product portfolio and gain priority rights in new drug promotion and sales [5][6]. - The investment includes a collaboration with Suninflam Ltd. on SIF001, a novel monoclonal antibody drug targeting inflammation in epilepsy, which is currently in clinical trials [5][6]. Shareholder Information - As of September 30, 2025, the company’s repurchase account held 8,107,890 shares, accounting for 2.04% of the total share capital [5].