Core Viewpoint - The private pharmaceutical distribution leader, Jiuzhoutong (600998.SH), continues to show steady growth in performance, driven by its "Three New and Two Transformations" strategy, with significant increases in revenue and net profit in the third quarter of 2025 [2] Group 1: Financial Performance - In the first three quarters, Jiuzhoutong achieved 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% year-on-year [2] - In Q3, the net profit attributable to shareholders and the net profit after deducting non-recurring gains and losses increased by 8.46% and 15.24% year-on-year, respectively [2] - The company reported a quarter-on-quarter net profit growth of 11.39% and a 16.49% increase in net profit after deducting non-recurring gains and losses [2] Group 2: Business Segments - Jiuzhoutong's pharmaceutical distribution business maintained steady growth, while emerging business segments such as drug agency promotion, pharmaceutical manufacturing, and digital logistics saw revenue growth rates of 15.26%, 9.93%, and 24.95%, respectively [2] - The company completed the public REITs issuance for pharmaceutical warehousing and logistics infrastructure, contributing an additional net profit of 438 million yuan [2] Group 3: New Product Strategy - The new product strategy, as part of the "Three New and Two Transformations" strategy, is crucial for the company's future development, with a comprehensive structure established for product strategy [3] - The agency brand promotion business (CSO) generated sales revenue of 14.73 billion yuan in the first three quarters, with a 15.26% year-on-year increase, driven by stable growth in core agency product sales [3] - The company introduced 81 new products in the first three quarters, with 32 star products achieving annual sales exceeding 100 million yuan [3] Group 4: New Retail Strategy - Jiuzhoutong's subsidiary, Haoyao Shi, provided comprehensive B2C e-commerce agency services, achieving sales revenue of 817 million yuan, a year-on-year increase of 13.00% [5] - The number of Haoyao Shi's direct and franchise stores reached 33,275 across 31 provinces and municipalities by the end of Q3 2025 [5] - The franchise sales scale maintained rapid growth, with sales revenue of 5.402 billion yuan, up 43.40% year-on-year [5] Group 5: Digital and New Medical Strategies - Jiuzhoutong's new medical strategy is progressing steadily, with over 3,000 clinic member stores established, aiming for a network of 10,000 clinics within three years [6] - The company has accelerated its digital transformation, particularly in AI development, with R&D investment of 229 million yuan and a technical staff of 1,591 [6] - The company's public REITs, the first in the domestic pharmaceutical industry, performed well in the market, with a cumulative increase of 43.28% since its listing [6]

Core Insights - The company, Jiuzhoutong, held a performance briefing on May 7, 2024, discussing its operational status, strategic transformation, and future plans with investors [1] - The B2C e-commerce segment, under the brand "Good Medicine Master," is expected to generate sales revenue of 980 million yuan in 2024, leveraging its extensive experience and user base [1] - Jiuzhoutong reported a total revenue of 151.81 billion yuan and a net profit attributable to shareholders of 2.507 billion yuan for 2024, reflecting a year-on-year revenue growth of 2.58% and a net profit growth of 39.88% [2] Company Performance - In 2024, Jiuzhoutong's B2C e-commerce business achieved a total sales GMV of over 1.57 billion yuan, with a significant year-on-year growth of 107.7% in interest e-commerce channels like Douyin and Kuaishou [2] - The company operates over 60 strategic partner brands and has launched more than 100 online flagship stores for well-known pharmaceutical and health brands [2] - For Q1 2025, Jiuzhoutong reported a revenue of 42.016 billion yuan, marking a 3.82% increase year-on-year, and a net profit of approximately 970 million yuan, reflecting an 80.38% increase compared to the same period last year [3]