Core Viewpoint - The company is undergoing a significant transformation in response to ongoing policy changes and market challenges, focusing on enhancing operational efficiency, diversifying revenue streams, and improving customer service capabilities. Financial Performance - In the first three quarters of 2025, the company's revenue decreased by 2.77% year-on-year, with a net profit of 31.93 million yuan, a slight increase of 2.55% compared to the previous year [6][7]. - The company's operating income for the third quarter was down 7.01% year-on-year, reflecting the impact of policy changes and sluggish pharmaceutical consumption [7]. Market and Economic Context - The retail sales of social consumer goods increased by 4.5% year-on-year in the first nine months of 2025, but the growth in the Chinese medicine sector was only 1.3%, a significant decline from 4.7% in the previous year [4]. - The GDP growth rate for the first three quarters of 2025 was 5.2%, while per capita healthcare spending grew by only 1.5%, down from 3.5% in the same period of 2024 [4]. Business Transformation Strategies - The company is shifting its focus from reliance on medical insurance income to enhancing non-drug business and professional services, with the proportion of medical insurance income in main business revenue decreasing from 52% in 2022 to 40% in 2025 [4][6]. - The company is actively optimizing its product categories and enhancing inventory turnover efficiency, resulting in a significant reduction of 727 million yuan in inventory value compared to the beginning of the year [8][45]. Cost Control and Efficiency Improvement - The company has implemented strict cost control measures, achieving a 2.84% reduction in period expenses in the first nine months of 2025, compared to a 13.42% increase in 2024 [6][14]. - The company is focusing on improving store efficiency and reducing costs by closing or relocating underperforming stores, resulting in a net decrease of 38 stores by the end of September 2025 [18]. Compliance and Regulatory Adaptation - The company is enhancing its compliance with medical insurance regulations and actively coordinating with regulatory bodies to ensure adherence to new policies [10][39]. - The company has developed a comprehensive system for managing prescription control and drug traceability, which has been fully implemented since July 1, 2025 [11][39]. Customer Engagement and Service Enhancement - The company is strengthening its membership system and community health initiatives, conducting numerous health promotion activities to enhance brand awareness and customer loyalty [25][26]. - The company is expanding its chronic disease management services, with over 5.6 million chronic disease members registered, reflecting a 54.6% increase year-on-year [26][27]. Future Outlook and Strategic Focus - The company plans to maintain a cautious yet proactive approach in the fourth quarter of 2025, focusing on core competencies and adjusting strategies to respond to external changes [35][36]. - The company aims to enhance its supply chain capabilities and continue diversifying its product offerings to stimulate customer demand and improve overall performance [41].

Report Information - Reported Company: Jianzhijia [17] - Industry: Pharmaceutical Commerce [2] - Research Date: August 29, 2025 [17] Core Views - The company is facing difficulties in obtaining medical insurance qualifications for newly opened stores, but is actively communicating with regulatory authorities. It is reducing its reliance on medical insurance and expanding non - medical insurance business, with the medical insurance settlement ratio dropping to 40% in H1 2025, a 4% year - on - year decrease [24]. - Through category adjustment, the company has achieved certain results. The proportion of prescription drug revenue structure decreased by 2.31%, while non - prescription drugs increased by 1.77%, and non - drug revenue structure increased by 0.55%. Inventory value decreased by 599 million yuan [24]. - The company's online business has been profitable for a long time. In H1 2025, the online platform's total operating income was 1,318,588,700 yuan, a 13.13% year - on - year increase, and the operating ratio increased from 25.99% to 29.59% [26]. Summary by Directory 01. Research Basic Situation - Research Object: Jianzhijia [17] - Industry: Pharmaceutical Commerce [17] - Reception Time: 2025 - 08 - 29 [17] - Reception Personnel: Chairman and General Manager Lan Bo, Financial Controller and Board Secretary Li Heng, Independent Director Guan Yunhong [17] 02. Detailed Research Institutions - Institutions: Investors and others [20] 03. Research Institution Proportion - No relevant content provided 04. Main Content Data - **Category Structure Change**: Newly opened stores in some areas have difficulties in obtaining medical insurance qualifications. The company is actively communicating with regulatory authorities. In H1 2025, the medical insurance settlement ratio was 40%, a 4% year - on - year decrease. The proportion of prescription drug revenue structure decreased by 2.31%, non - prescription drugs increased by 1.77%, and non - drug revenue structure increased by 0.55%. Inventory value decreased by 599 million yuan [24]. - **Online Business**: The company's online business has been profitable for a long time. In H1 2025, the online platform's total operating income was 1,318,588,700 yuan, a 13.13% year - on - year increase, and the operating ratio increased from 25.99% to 29.59% [26].