Group 1: Financial Performance - The company achieved a revenue of CNY 2.504 billion in the first half of 2025, representing a year-on-year growth of 15.52% [3] - The net profit attributable to shareholders reached CNY 104 million, a significant increase of 42.17% compared to the previous year [3] - The net profit excluding non-recurring gains and losses was CNY 101 million, reflecting a growth of 43.28% year-on-year [3] Group 2: Strategic Initiatives - The company implemented the "1234 strategy," focusing on one core area in pharmaceutical terminals and two directions: product matrix and pharmacy terminals [3] - The management emphasized high-quality development through multi-dimensional layout and systematic optimization, leading to continuous upgrades in industrial structure [3] - The company is shifting from traditional pharmaceutical retail to a comprehensive health service model, enhancing its competitive edge [3] Group 3: Market Challenges - The overall growth rate in the pharmaceutical retail industry has slowed down, with increased competition leading to a decrease in customer traffic and average transaction value [4] - Changes in healthcare policies and the rise of new retail channels have diverted customer traffic away from traditional pharmacies [4] - The number of pharmacies in the market has exceeded 700,000, intensifying competition and pressuring operational efficiency [4] Group 4: Future Outlook - The company plans to expand its store network, having opened 529 new stores in the reporting period, including 51 self-built and 478 acquired stores [8] - The management anticipates long-term growth opportunities driven by an aging population and increasing health demands, particularly in chronic disease management [9] - The company aims to enhance its service value and market position by focusing on product innovation and differentiated services [10] Group 5: Integration and Expansion Strategy - The management is adopting a cautious integration strategy, focusing on developing franchise operations and member business models [6] - The company is looking to make small-scale acquisitions to strengthen its market presence rather than pursuing large-scale expansions [6] - The establishment of a dedicated commercial insurance department aims to integrate health insurance with pharmacy services, enhancing customer experience [7]