Financial Performance - In the first half of 2025, the company achieved a total revenue of 1.30 billion yuan, representing a year-on-year increase of 48.81% [3] - The net profit attributable to shareholders was 36.25 million yuan, with a year-on-year growth of 49.83% [3] - The gross profit margin decreased by 1.56% compared to the previous year [3] - The expense-to-revenue ratio improved by 1.16% during the reporting period [3] Store Network and Market Strategy - As of June 30, 2025, the company operated a total of 9,042 stores across several provinces, including Shandong, Liaoning, Heilongjiang, Fujian, Henan, and Gansu [3] - The company has 5,072 directly operated stores and 3,970 franchise stores [3] - Three core strategies to increase market share in Shandong include: 1. Mergers and acquisitions, with 754 stores acquired in the first half of 2025 [5] 2. Upgrading franchise operations to improve management efficiency [5] 3. Optimizing existing stores and introducing new service models [5] Diversification and Product Development - The company has diversified its product offerings, including health foods, medical devices, and traditional Chinese herbal teas, with a notable increase in sales from non-traditional categories [6] - Self-owned product sales accounted for approximately 14% of total sales, with a year-on-year growth of around 4% [8] Online Business Strategy - The online business strategy focuses on B2C, O2O, and private domain operations, with a strong emphasis on private domain operations as a key growth area [9] - The company has established an innovation business development department to support the expansion of private domain operations [9] Industry Outlook - The retail pharmacy industry is expected to undergo a consolidation phase, with a gradual reduction in the number of stores as the market evolves [10] - The trend indicates that resources will increasingly concentrate on leading chain brands with scale effects and professional service capabilities [11]