Core Viewpoint - 九州通 is undergoing a strategic transformation towards light asset operations and aims to become a dual-listed company on A-shares and public REITs, enhancing its market position in the biopharmaceutical industry [1][2]. Group 1: Strategic Transformation - 九州通 is focusing on a "three new and two modernization" strategy in 2024, achieving significant results in new products, new retail, new medical services, digitalization, and real estate securitization [2]. - The company has established a multi-level real estate equity capital operation platform, marking its transition from heavy assets to light assets [3]. Group 2: Financial Performance - In 2024, 九州通's total revenue reached 151.81 billion yuan, a year-on-year increase of 2.58%, while net profit attributable to shareholders was 2.507 billion yuan, up 39.88% [2]. - In Q1 2025, the company reported revenue of 42.016 billion yuan, a 3.82% increase year-on-year, and a net profit of approximately 970 million yuan, reflecting an 80.38% growth [2]. Group 3: Product Pipeline Expansion - 九州通's product pipeline is expanding with the approval of "Betamethasone Sodium Phosphate Injection," which is expected to enhance market share and strengthen the company's competitive position in the injection product market [1][4]. - The company achieved sales revenue of 3.007 billion yuan from its self-produced and OEM pharmaceutical business in 2024, marking a 21.49% increase [5]. Group 4: Research and Development - 九州通's R&D investment in 2024 was 346 million yuan, reflecting a year-on-year growth of 24.32% [2].

Core Viewpoint - The strategic transformation of the company, driven by the "Three New and Two Digital" strategy, has led to steady growth in performance, with significant increases in revenue and profit in 2024 and Q1 2025 [2][3][5]. Financial Performance - In 2024, the company achieved a total revenue of 151.81 billion yuan, a year-on-year increase of 1.11%, and a net profit attributable to shareholders of 2.507 billion yuan, up 15.33% [3][5]. - The net cash flow from operating activities turned positive at 3.083 billion yuan [3]. - For Q1 2025, the company reported revenue of 42.016 billion yuan, a growth of 3.82%, and a net profit of approximately 970 million yuan, an increase of 80.38% [4][5]. Business Segments - The core pharmaceutical distribution business showed stable growth, while emerging sectors like industrial self-production, OEM, traditional Chinese medicine, and digital logistics grew rapidly, each with a growth rate around 20% [3][4]. - The industrial self-production and OEM segment generated sales of 5.92 billion yuan, up 26.92%, with a gross margin of 42.48% [3]. - The traditional Chinese medicine segment achieved sales of 4.962 billion yuan, a growth of 18.14%, supported by a blockchain-based quality traceability platform [4]. Strategic Initiatives - The company is focusing on new product strategies, with sales from the pharmaceutical agency brand promotion business reaching 19.267 billion yuan, introducing 2,247 drug and device specifications [5][6]. - The new retail strategy has established over 29,000 franchise pharmacies, with B2C e-commerce sales reaching 980 million yuan and over 35 million end-users [5][6]. - The new medical strategy includes the development of an AI-assisted diagnostic platform in collaboration with Tencent Cloud, enhancing service efficiency for clinics and grassroots medical institutions [6]. Digital Transformation - The company invested 346 million yuan in digital and intelligent technology innovation, with 47 digital transformation projects implemented, 45 of which have been successfully launched [6]. - The logistics segment achieved revenue of 1.064 billion yuan, a growth of 25.32%, with a gross profit of 236 million yuan, up 17.08% [4]. Real Estate Investment Trusts (REITs) - The company completed the issuance of public REITs for its pharmaceutical warehousing and logistics, raising 1.158 billion yuan, marking a significant step towards asset-light transformation [7]. - The public REITs issuance saw a subscription multiple of 1,192 times, setting a historical record for public REITs [7].

Core Insights - The Hubei Provincial Conference on the Development of the Private Economy highlighted the growth of Jiuzhoutong Pharmaceutical Group, which has nearly 30,000 franchise pharmacies and expects sales to exceed 7 billion yuan in 2024, representing a 50% year-on-year increase [1][2] Company Overview - Jiuzhoutong was listed on the Shanghai Stock Exchange in 2010 and currently has 682 holding companies and over 30,000 employees [1] - For the first three quarters of 2024, the company achieved a revenue of 113.4 billion yuan, ranking 176th among China's top 500 companies and 55th among private enterprises [1] Strategic Initiatives - The company is advancing its "Three New and Two Transformations" strategy, focusing on new products, new retail, new medical services, digitalization, and real estate securitization [2] - In the new product segment, Jiuzhoutong has established four R&D institutions and collaborates with several research institutes, with an annual R&D expenditure of 200-300 million yuan [2] - The new retail initiative has seen nearly 30,000 franchise pharmacies, with projected sales of over 7 billion yuan in 2024, marking a 50% increase [2] - In the new medical sector, the company has developed a "digital + supply chain" system, with 1,366 franchise clinics and plans to exceed 10,000 clinics in the next five years [2] - The digitalization effort includes a dedicated leadership team and over 1,400 IT engineers, completing more than 100 digital projects [2] - Jiuzhoutong successfully issued the first public REITs for pharmaceutical warehousing and logistics assets in the industry, raising 1.158 billion yuan [2] Corporate Governance - In 2020, Jiuzhoutong transitioned from founder-led management to a professional management team, which is currently functioning well [2] - The company aims to optimize its institutional mechanisms to establish a modern corporate governance system and contribute to the construction of Hubei's economic framework [2]