Core Viewpoint - The credit rating report affirms that Jiuzhoutong Pharmaceutical Group Co., Ltd. holds a strong industry position and competitive advantage, with expected growth in distribution business and robust liquidity [5][6]. Company Overview - Jiuzhoutong is recognized as a leading private pharmaceutical distribution enterprise in China, with a significant national presence and a comprehensive service model that includes digital distribution and supply chain services [11][15]. - The company reported a total revenue of 1518.10 billion yuan in 2024, reflecting a year-on-year growth of 1.14% [11][15]. Financial Performance - Total assets reached 1023.96 billion yuan in 2024, with total liabilities at 688.03 billion yuan, indicating a stable financial structure [6][27]. - The net profit for 2024 was 27.86 billion yuan, with an EBIT of 53.44 billion yuan, showcasing a solid operational performance [6][27]. Industry Context - The pharmaceutical distribution market is expanding, driven by increasing health awareness and an aging population, with a growth rate of 5.58% [13]. - However, the industry faces challenges such as declining profit margins and extended payment terms due to intensified competition and policy changes [13][27]. Operational Strengths - Jiuzhoutong has established a nationwide distribution network covering over 96% of administrative regions in China, enhancing its channel security and operational efficiency [15][16]. - The company has a diverse product portfolio, managing approximately 799,700 varieties, which meets the diverse procurement needs of downstream clients [19][20]. Future Outlook - The company is expected to maintain a stable credit level over the next 12 to 18 months, with potential risks related to financial leverage and liquidity [6][27]. - Jiuzhoutong's ongoing digital transformation and expansion into new business areas, such as retail and logistics, are anticipated to drive future growth [15][21].