Group 1: Report Overview - The report is about a research on Shuyu Pingmin in the pharmaceutical commerce industry on August 29, 2025 [1][2] Group 2: Research Participants - Participating research institutions include Northeast Securities, CITIC Securities, China Merchants Securities, Guojin Securities, CITIC Construction, etc [2] Group 3: Company Performance in H1 2025 - The company's cumulative operating income from January to June 2025 was 4.881 billion yuan, a year - on - year increase of 1.30%; the net profit attributable to the parent company's shareholders was 36.2509 million yuan, a year - on - year increase of 49.83% [24] - Affected by industry policies and regulatory environment changes, the company's overall operating income growth slowed down, and the gross profit margin decreased by 1.56% year - on - year. However, the gross profit margin increased by 3.45% quarter - on - quarter compared to H2 2024 [24][25] - The company optimized the store network layout, adjusted the operating area, and optimized lease contract terms. The expense - to - sales ratio was optimized by 1.16% year - on - year [24] - As of the end of June 2025, the company had 9,042 stores in Shandong, Liaoning, Heilongjiang, Fujian, Henan, Gansu and other regions, including 5,072 direct - operated stores and 3,970 franchised stores [25] Group 4: Investor Q&A Impact of Prescription Out - dispensing Policy and Response - In Shandong, the tightening of the national policy has a relatively limited impact on the company. The company's coordinated business in Shandong has achieved a slight increase [25] Measures to Increase Market Share in Shandong - The company uses three core measures: mergers and acquisitions (3 M&A projects with 754 stores in Shandong in H1 2025), franchise upgrade (transforming some franchise stores to quasi - direct - operated franchise mode), and store optimization (closing loss - making stores, adjusting to meet diversified service needs, and piloting 4 "store + outpatient department" model drug - diagnosis stores) [26] Diversified Business Layout - Traditional non - drug categories include health foods, medical devices, and Chinese herbal health teas. Non - traditional categories include the growing health and beauty sector and lifestyle convenience products. The company also has industrial synergy through medical services and cross - border business, and focuses on private domain operations [26] Shandong - Outside M&A Expansion Plan - The company will moderately slow down the pace of M&A outside Shandong, while continuing the M&A plan in Shandong steadily. The current core task is to deepen the local business in Shandong [27] Sales of Self - owned Products - In H1 2025, the sales of self - owned products accounted for about 14%, a year - on - year increase of about 4%. The company expects the proportion to further increase [27] Long - and Medium - Term Online Business Strategy - The company's online business includes B2C, O2O, and private domain operations. B2C maintains stable profitability, O2O is profitable in Shandong and will develop steadily, and private domain operations are the key focus for future development [28] Outlook on Industry Clearance - The number of pharmacies will be gradually streamlined and optimized. With the deepening of the separation of pharmacy and medicine policy, industry concentration will increase, and inefficient pharmacies will be eliminated [29]