Group 1: Business Strategy and Goals - The company aims to enhance the operational quality of existing stores, focusing on relocation and renovation rather than significantly increasing the number of stores [2] - The mid-term goal is to increase the sales proportion of non-pharmaceutical products to around 40%, with a long-term target of approximately 50% [2] - The company plans to transform over 500 stores in Yunnan this year, with pilot stores showing an increase in non-pharmaceutical sales from 15% to over 35% [2] Group 2: Business Segments - Retail business includes pharmacies, drugstores, and convenience stores, with a strong push towards non-pharmaceutical sales [2] - The Chinese medicine segment plans to increase the number of registered formula granule products from nearly 350 to an additional 100 [3] - The health and wellness segment saw a 29.3% year-on-year growth in sales, with functional foods increasing by 120% [4] Group 3: Store Transformation and Management - Over 70% of stores are categorized as multi-category pharmacies, while over 20% are specialized pharmacies [6] - The company employs a digital management system to analyze customer demographics for product selection [7] - The transformation of specialized pharmacies is yielding new growth points, particularly in specialty drugs and oncology products [8] Group 4: Financial Impact and Future Planning - The company is committed to transformation and upgrading, with minimal financial impact due to the focus on product addition and employee skill enhancement [9] - New business models will be developed in collaboration with suppliers, leveraging digital analysis for gradual store renovations [9]

Group 1: Company Performance - In 2024, the company achieved revenue of 18 billion CNY, a year-on-year increase of 3.57% [3] - Net profit attributable to shareholders was 114 million CNY, a decline of 79.23% year-on-year [3] - Total assets amounted to 16.8 billion CNY, with a net asset scale of 7.6 billion CNY [3] - In Q1 2025, revenue was 4.767 billion CNY, a decrease of 6.53% year-on-year, and net profit was 160 million CNY, down 33.83% [3] Group 2: Store Operations - As of December 31, 2024, the number of stores reached 11,498, up from 10,255 at the beginning of the year [6] - In 2025 Q1, the net number of stores decreased by 47, totaling 11,451 stores [6] - The company plans to enhance the operational quality of existing stores rather than focusing on new openings [6] Group 3: Business Development - Retail business aims to reduce reliance on medical insurance payments, targeting a decrease from 30% to below 25% [7] - The company plans to increase the number of traditional Chinese medicine products from 350 to an additional 100 [7] - The medical and health business includes light diagnosis clinics and health management centers [7] Group 4: Market Environment - The consumption market has changed significantly, affecting product demand due to various factors including online and offline dynamics [8] - The industry is experiencing intense competition, with a rapid increase in the number of pharmacies leading to lower per-store output [9] - Regulatory changes may provide consolidation opportunities for leading chain enterprises like Yixin Tang [10] Group 5: Investment and Projects - In 2024, the company repurchased 10,401,300 shares for a total of approximately 134.71 million CNY [11] - Major capital expenditures in 2025 include investments in digitalization and logistics [11] Group 6: Digitalization - The company has implemented cloud services for various operational aspects, enhancing efficiency [12] - Digital applications include customer service, product management, and supply chain tracking [12] Group 7: Medical Insurance Policies - Medical insurance payments currently account for about one-third of total revenue [13] - The company anticipates opportunities for integration and optimization due to stricter medical insurance approvals [15] Group 8: Dividend Distribution - The proposed profit distribution for 2024 is 3 CNY per 10 shares, with a total cash dividend of approximately 172 million CNY [4][19]