Core Insights - The company, Jiuzhoutong, held its Q3 2025 earnings presentation on November 4, focusing on the progress and development plans of its "Jiuyi Clinics" membership stores [1] Group 1: Membership Store Development - As of September 30, 2025, the company has over 3,000 membership clinics and aims to achieve a target of "10,000 clinic alliances" within three years [1] - In collaboration with upstream enterprises such as Taiji, China Resources Sanjiu, and Changfeng Pharmaceutical, the company has introduced over 490 new products in the first three quarters, resulting in a 69% quarter-on-quarter increase in sales of specialized products for clinics [1] Group 2: Digital Empowerment - The company has developed its own Jiuyi SaaS clinic management system, which has been implemented in over 2,000 membership stores, facilitating rapid record-keeping, electronic prescriptions, medical insurance settlements, and drug traceability [1] - A partnership with Tencent Cloud has led to the development of an AI-assisted diagnostic platform that covers nearly 3,000 diseases and over 110,000 drug knowledge entries, with the addition of DeepSeek technology in September [1] - The AI-assisted diagnostic system has reached a peak monthly usage of 69,000 times, significantly enhancing the operational and diagnostic efficiency of the clinics [1]

Core Insights - 九州通 reported strong financial performance for the first three quarters of 2025, with revenue of 119.33 billion yuan, a year-on-year increase of 5.20%, and a net profit attributable to shareholders of 1.975 billion yuan, up 16.46% [1] - The company is actively implementing its "Three New and Two Digital" strategy, focusing on new products, new retail, new medical services, digitalization, and real estate securitization [1] Financial Performance - In Q3 2025, 九州通 achieved revenue of 38.22 billion yuan and a net profit of 530 million yuan, representing year-on-year growth of 5.41% and 8.46%, respectively [1] - The net profit for Q3 showed a quarter-on-quarter increase of 11.39%, while the non-recurring net profit increased by 16.49% [1] Business Development - The new product strategy has proven effective, with total brand promotion sales reaching 14.73 billion yuan in the first three quarters, driven by a 15.26% increase in pharmaceutical agency revenue [2] - The medical beauty business grew significantly, with a year-on-year increase of 45.84%, and the number of cooperative service institutions exceeding 11,500 [2] New Retail Strategy - The "Good Medicine Master" franchise plan has accelerated, with a total of 33,275 direct and franchise pharmacies by the end of Q3, and franchise store sales growing by 43.40% [2] - B2B e-commerce revenue reached 15.53 billion yuan, a year-on-year increase of 19.68%, with over 600,000 registered users on the Jiujiu platform [2] New Medical Strategy - The "Jiu Medical Clinic" membership stores exceeded 3,000, with plans to reach 10,000 in three years [3] - The introduction of over 490 new products in the supply chain has led to a 69% quarter-on-quarter increase in sales of clinic-exclusive products [3] Digitalization and REITs - 九州通 invested 229 million yuan in R&D in the first three quarters, with 1,591 technical personnel, and implemented 34 projects including AI warehouse picking and smart logistics [3] - The company's REITs project has seen a 43.28% increase since its listing, with a 100% rental rate for initial assets in Shanghai, Hangzhou, and Chongqing [3] Future Development - The chairman emphasized the commitment to deepening the "Three New and Two Digital" strategy and accelerating the development of high-margin businesses [4] - The company is exploring the replication of the REITs model for more quality warehouse assets to optimize its capital structure [4]

Core Viewpoint - 九州通 continues to demonstrate steady growth with a strong performance in its Q3 2025 report, achieving revenue and net profit increases, driven by its strategic focus on new products, new retail, new medical services, digitalization, and real estate securitization [1][2]. Financial Performance - In the first three quarters of 2025, 九州通 reported revenue of 119.33 billion yuan, a year-on-year increase of 5.20%, and a net profit attributable to shareholders of 1.975 billion yuan, up 16.46% [1]. Core Business Growth - The company has successfully implemented its strategy focusing on new products, new retail, new medical services, digitalization, and real estate securitization, leading to stable development across its main business sectors [2]. - The total sales revenue from brand promotion (including pharmaceuticals and medical devices) reached 14.73 billion yuan, with pharmaceutical promotion revenue growing by 15.26% to 8.74 billion yuan [2]. New Retail Strategy - 九州通 has established a comprehensive new retail service system, integrating B2C and B2B e-commerce platforms, with a total of 33,275 stores by the end of Q3 2025, and sales to franchise stores reaching 5.40 billion yuan, a 43.40% increase [3]. New Medical Strategy - The company has expanded its clinic membership to over 3,000 and plans to establish a network of 10,000 clinics within three years, while also launching a SaaS system for clinic management [3][4]. Digitalization and AI Development - 九州通 has invested significantly in AI and digital capabilities, with R&D expenditures of 229 million yuan and a workforce of 1,591 technical personnel, focusing on various digital applications to enhance operational efficiency [4][5]. Real Estate Securitization (REITs) - The company's REIT product has performed well since its launch in February 2025, earning recognition as one of the most favored public REIT products by investors [6]. Emerging Business Growth - The traditional Chinese medicine segment reported sales of 4.51 billion yuan, a 26.08% increase, supported by investments in resource management and production capabilities [7]. - The medical beauty segment achieved sales of 904 million yuan, growing by 45.84%, with a network of 11,538 service institutions [8]. Logistics and Supply Chain Solutions - 九州通 has developed a nationwide intelligent pharmaceutical logistics network, covering 96% of regions, with 137 modern logistics centers totaling 4.02 million square meters [9]. - The company offers integrated smart supply chain solutions, enhancing logistics efficiency and service quality across various industries [10].

Group 1 - The company is actively embracing AI technology through self-research and partnerships with leading firms like Alibaba Cloud and Tencent Cloud, developing AI applications for various scenarios to accelerate digital transformation in business and management [1][2] - AI applications include smart logistics, integrated Chinese and Western medicine diagnosis, medical devices, and intelligent office solutions, significantly improving operational efficiency and patient experience across different platforms [1][2] - The AI logistics project "Goods to Person" has enhanced overall efficiency by 10% through the application of intelligent scheduling algorithms across the entire lifecycle of order grouping, product storage, and dispatch [1] Group 2 - The company has implemented an internal office system and a digital assistant "Zhi Jiu Ge" integrated with DeepSeek, resulting in a 38% increase in work efficiency [2] - As of July 2025, the company has over 2,400 clinic membership stores and aims to establish a network of 10,000 clinics within three years, focusing on a business model that integrates medical services with supply chain management [2] - The company has introduced over 260 new products in the first half of the year, enhancing the product structure in clinics through partnerships with various upstream manufacturers [2] Group 3 - The company has launched the "Jiu Yi SaaS Clinic Manager" system, enabling rapid operations such as 3-second record creation and 10-second prescription issuance, with 1,525 clinic membership stores currently using the system [3] - The AI-assisted diagnosis platform developed in collaboration with Tencent Cloud covers nearly 3,000 diseases and over 110,000 drug knowledge, with an average of 51,000 uses per month across member stores [3] - The new product strategy, as part of the "Three New and Two Transformations" strategy, is crucial for future development, focusing on integrating resources across the group to introduce clinically valuable and marketable new products [3] Group 4 - The company has established a new product strategy fund, "Wuhan Jiu Ying Venture Capital Fund Partnership," with a scale of 500 million yuan, focusing on innovative drugs and high-end generics [4]

Group 1 - The company held its 2025 semi-annual performance briefing on September 3, where executives reported steady progress in its new medical strategy, with over 2,400 clinic member stores established by the end of July 2025, aiming to achieve a network of 10,000 clinics within three years [1] Group 2 - The company's subsidiary, Jiuyi Clinics, focuses on a business model that integrates "medical services + supply chain," primarily based on supply chain operations, promoting products and forming a member alliance across clinics [2] - The company has introduced over 260 new products in the first half of the year, enhancing the product structure for clinics by collaborating with multiple upstream manufacturers, including Taiji, China Resources Sanjiu, Changfeng Pharmaceutical, Jilin Aodong, and Tianyao Pharmaceutical [2] - The company has developed and launched the Jiuyi SaaS Clinic Manager system, providing intelligent operational value-added services to clinic clients, enabling quick documentation and billing processes, with 1,525 clinic member stores currently using the system [2] - The company partnered with Tencent Cloud to develop the Jiuyi Clinic AI-assisted diagnosis platform, which integrates Tencent's medical AI reasoning, covering nearly 3,000 diseases and 110,000 drug knowledge, with an average of 51,000 monthly uses of the AI-assisted diagnosis platform across member stores [2]

Core Viewpoint - 九州通 has reported strong financial performance for the first half of 2025, achieving a revenue of 81.106 billion yuan, a year-on-year increase of 5.10%, and a net profit of 1.446 billion yuan, up 19.70%, despite industry challenges [1] Group 1: Financial Performance - The company achieved a revenue of 81.106 billion yuan in H1 2025, reflecting a 5.10% year-on-year growth [1] - The net profit attributable to shareholders reached 1.446 billion yuan, marking a 19.70% increase compared to the previous year [1] Group 2: Strategic Initiatives - 九州通 is focusing on its "Three New and Two Digital" strategy, which includes new products, new retail, new medical services, digitalization, and real estate securitization [2] - The company introduced 61 new pharmaceutical products during the reporting period, with total sales revenue from brand promotion reaching 9.591 billion yuan [2] Group 3: New Retail and Medical Services - The new retail strategy, centered around the "Good Medicine Master" franchise, generated sales revenue of 1.493 billion yuan, a 2.52% increase year-on-year [2] - The number of "Good Medicine Master" stores reached 31,535 by the end of June 2025, with expectations to exceed 33,500 by the end of the year [3] Group 4: Digitalization and AI Integration - 九州通 has developed a SaaS system for clinic management, enhancing operational efficiency with features like rapid patient registration and billing [4] - The company has partnered with Tencent Cloud to create an AI-assisted diagnostic platform, which is currently used in over 1,500 clinics [4] Group 5: Emerging Business Growth - The pharmaceutical manufacturing segment achieved sales of 1.593 billion yuan, a 10.77% increase, while the digital logistics segment reported revenue of 0.587 billion yuan, up 24.66% [7][8] - The medical beauty business generated sales of 0.583 billion yuan, reflecting a significant growth of 48.64% [8] Group 6: ESG and Credit Rating - 九州通 has committed to social responsibility, donating 11.3781 million yuan in the first half of 2025 and receiving various ESG ratings, including "AA" from mainstream ESG rating agencies [9] - The company achieved a AAA credit rating from a leading credit rating agency, marking it as the only AAA-rated private enterprise in the pharmaceutical distribution sector [9]