Core Insights - Sichuan Hezhong Pharmaceutical Easy Purchase Co., Ltd. (referred to as "Easy Purchase") is committed to developing the outpatient market and the pharmaceutical industry internet, focusing on a full-channel supply chain and driven by digital innovation technology [3] Group 1: Strategic Planning - Easy Purchase aims to create a one-stop service system by leveraging talent and capital across industrial, commercial, terminal, and consumer sectors [3] - The company has established a core positioning of "Pharmaceutical + Technology," "Platform + Ecology," and "Self-operated + Empowerment," building an SBbC ecosystem driven by full-channel supply chain and digital technology [3] Group 2: Channel Layout - Easy Purchase is focused on breaking down barriers between upstream manufacturers and pharmaceutical terminals, positioning itself as a leading enterprise in the technology health sector [3] Group 3: Future Investment Directions - Easy Purchase plans to establish the Jian Su Easy Purchase Fund in collaboration with professional investment institutions and state-owned platform companies, participating in the investment of the Chuan-Yu Gao Zhu New District Guang Yi Xing (Chongqing) Private Equity Investment Fund Partnership [3] - The company aims to leverage professional institutional resources to discover quality enterprises and projects, enhancing its product voice and pricing power while developing innovative pharmaceutical sales channels [3] Group 4: TOC Business Development - In the first half of 2025, Easy Purchase established Sichuan Easy Purchase Technology Group Co., Ltd. to increase investments in internet pharmaceutical retail projects and offline channel incubation [3] - The online TOC business, controlled by Chongqing Yao Da Mai, achieved revenue of 150 million yuan in the first half of 2025, reaching 77.73% of the total revenue for 2024 [3] - The company’s investment in Yuxin Traditional Chinese Medicine achieved revenue of 55 million yuan in the first half of 2025 and was recognized as one of the "Top Ten National Health Brands" by Pinduoduo [3] - The offline TOC business is expanding through a franchise model, forming a cluster of chain pharmacies in Southwest and South China [3]

Group 1: Company Strategy and Market Positioning - The company is committed to the development of the out-of-hospital market and the pharmaceutical internet industry, focusing on a full-channel supply chain and driven by digital innovation technology [2][4] - As of the first half of 2025, the company has established a comprehensive SBbC ecosystem covering R&D, production, commerce, retail, and end-user channels, positioning itself as a leading enterprise in the health technology sector [4][5] Group 2: Investment Directions and Collaborations - The company has set up the Jian Su Yi Gou Fund in collaboration with professional investment institutions and state-owned platforms, aiming to identify quality enterprises and projects related to its main business [5] - Future investments will focus on acquiring quality products' pricing power through equity investments in traditional Chinese medicine and innovative pharmaceutical sales channels, including internet retail and smart drug storage [5] Group 3: TOC Business Development - The company has established Sichuan Yao Yi Gou Technology Group Co., Ltd. to enhance investments in internet pharmaceutical retail and offline channels [6] - In the first half of 2025, the company's subsidiary Chongqing Yao Da Mai generated revenue of 150 million CNY, achieving 77.73% of its total revenue for 2024, while its partner company Yu Xin Zhong Yi achieved significant recognition and revenue growth [7]

Core Viewpoint - The company, Yaoyigou, known as the "first stock of pharmaceutical e-commerce," is facing severe challenges amid deep industry transformations, including pressure from the "Seven Unifications" policy and intense competition in the outpatient market [2][3]. Financial Performance - Yaoyigou's revenue growth has been consistently weak since its IPO, with growth rates declining from 21.87% in 2021 to -1.12% in 2024, entering a negative growth phase [3]. - In the first half of 2025, the company's revenue fell by 3.06% year-on-year to 2.157 billion yuan, and the net profit turned into a loss of 7.6144 million yuan, a decline of 162.95% [3][11]. - The company's performance showed a drastic quarterly change, with a profit of 4.1837 million yuan in Q1 2025, followed by a loss exceeding 11.79 million yuan in Q2 2025 [3]. Business Segments - The TOB business remains the main revenue source, accounting for over 97% of total revenue, with B2B e-commerce revenue declining by 15.61% to 1.441 billion yuan [5][6]. - Digital distribution revenue grew by 23.52% to 2.349 billion yuan, but overall TOB business still saw a year-on-year decline of 2.22% [5][6]. - The TOC business showed a mixed performance, with online retail revenue surging by 225.87% to 56.969 million yuan, but its contribution to overall revenue remained minimal at 1.3% [5][6]. Market Challenges - The company is experiencing a "growth without revenue" dilemma, where key metrics in e-commerce have improved, yet total revenue has decreased by 5.89% [8][9]. - The increase in user base is primarily among small retailers and long-tail demand groups, which have lower transaction values and bargaining power, exacerbated by policies that compress drug price margins [9]. - The company faces structural challenges common in the pharmaceutical e-commerce sector, indicating a need for transformation from traditional distribution models to specialized service providers [9]. Stock Performance - Since its IPO, Yaoyigou's stock price has been on a downward trend, with a cumulative decline of 79.79% from its peak of 150 yuan per share shortly after listing [10]. Cost Structure - The company's financial struggles are compounded by rising operational costs, with sales expenses increasing by 46.25% to 164 million yuan, management expenses up by 6.94%, and financial expenses rising by 12.72% [11]. - Research and development expenses have decreased significantly, down 39.73% to 5.619 million yuan, reflecting a lack of effective implementation of its R&D strategy [11].

Core Viewpoint - The company reported a revenue of 2.157 billion yuan for the first half of 2025, which aligns with market expectations despite slight fluctuations compared to the previous year, indicating a solid foundation for long-term growth through structural optimization and innovation breakthroughs in its core business [1] Group 1: Business Strategy - The company is restructuring the industry value chain through a three-dimensional strategy of "upstream product control, midstream empowerment, and downstream terminal capture" leveraging over 20 years of experience in the outpatient market [2] - The company is building a moat around scarce resources by utilizing the MAH model, exclusive agency for ethnic and traditional Chinese medicines, and investments in medical devices, thereby securing pricing power for core products [3] Group 2: Digital Transformation - The establishment of a wholly-owned subsidiary, Shutan Artificial Intelligence, marks a significant breakthrough in the company's digital ecosystem and big data strategy, enhancing operational efficiency across various business systems [4] - The company has provided financing services to over 5,100 small and micro clients, with accounts receivable turnover days reduced from 68 to 52 days, leading to a 25%-30% increase in procurement [4] Group 3: Market Reach - The company achieved 150 million yuan in revenue from Chongqing Yaoda Mai in the first half of 2025, representing 77.73% of the total revenue for 2024, with its "Viagra" series products ranking first in the e-commerce prescription drug category [5] - The company operates 451 chain pharmacies, including 1,474 franchise stores, and has implemented O2O smart drug warehouses in Chengdu, achieving a 67% increase in O2O order volume [5] Group 4: Ecosystem and Capital Empowerment - The company has injected new vitality into its ecosystem through dual-driven strategies of industrial funds and data asset operations, completing investments in five pharmaceutical varieties and three equity projects [6] - The company has accumulated 134.1TB of data resources, with over 20 data products listed on the Shanghai Data Exchange, positioning itself advantageously in the data circulation sector [6] Group 5: Long-term Value Proposition - Despite a temporary adjustment in net profit, the company's forward-looking investments in MAH reserves, digital system development, and C-end ecosystem construction are expected to create significant barriers in the pharmaceutical internet industry [8] - The company's comprehensive supply chain and digital technology-driven model has transitioned it from traditional pharmaceutical distribution to a leader in the technology-driven health industry, with a robust ecosystem closing in on completion [8]