Core Points - Ele.me has launched the "Rider Day" initiative to enhance support for delivery riders during the summer heat, starting from June 17, with activities planned for the 17th of each month [1][3] - The initiative includes free services such as haircuts, health check-ups, and distribution of cooling supplies at rider stations across 17 cities, including Beijing, Shanghai, and Hangzhou [1][3] - Online activities will also be held, allowing riders to redeem summer essentials at a minimal cost through the app [1][3] Group 1 - The establishment of "Rider Day" aims to systematize and enhance the care and support for delivery riders, making it a regular and intelligent initiative [3][5] - The China Workers Development Foundation emphasizes the importance of rider safety and health, highlighting the platform's commitment to creating a safer working environment [5] - A donation of 1.5 million yuan worth of cooling supplies has been made to Ele.me's riders by the China Workers Development Foundation and China National Pharmaceutical Group [7] Group 2 - The summer care initiative, "Cool Summer Action 2025," includes seven measures aimed at improving the working conditions and support for riders, such as free supplies and discounted meals [8] - The initiative also focuses on upgrading smart equipment and providing subsidies for phone and battery charging [8] - Training sessions on first aid are being conducted for riders as part of the activities on "Rider Day" [10]

Core Viewpoint - The company reported significant declines in revenue and net profit for 2024, with a challenging outlook for the pharmaceutical industry due to high base effects and inventory issues [1][2]. Financial Performance - In 2024, the company achieved revenue of 12.39 billion (down 20.7% YoY) and a net profit of 26.65 million (down 96.8% YoY) [1]. - The gross margin was 39.3% (down 9.3 percentage points YoY) and the net margin was 0.4% (down 5.1 percentage points YoY) [1]. - For Q4 2024, revenue was 1.95 billion (down 43.3% YoY) with a net loss of 520 million (down 909.7% YoY) [1]. - In Q1 2025, revenue was 2.83 billion (down 32.8% YoY) with a net profit of 74.54 million (down 69.8% YoY) [1]. Segment Performance - The pharmaceutical industry segment reported sales of 7.04 billion (down 32.3% YoY) with a gross margin of 58.7% [2]. - The pharmaceutical commercial segment achieved sales of 6.74 billion with a gross margin of 8.7% [2]. - The traditional Chinese medicine resources segment reported sales of 1.05 billion with a gross margin of 8.8% [2]. - The health and international business segment had sales of 460 million with a gross margin of 5.9% [2]. Product Sales by Therapeutic Area - Respiratory medications sales were 2.16 billion (down 18.1% YoY) [2]. - Digestive and metabolic medications sales were 1.87 billion (down 35% YoY) [2]. - Anti-infection drugs sales were 960 million (down 48.4% YoY) [2]. - Neurological medications sales were 610 million (down 31.7% YoY) [2]. - Health products sales were 605 million (down 28.8% YoY) [2]. - Cardiovascular medications sales were 505 million (down 34.1% YoY) [2]. - Anti-tumor and immune regulation drugs sales were 205 million (down 16.5% YoY) [2]. Strategic Initiatives - The company is reforming its marketing system and focusing on innovative brand communication to reach younger consumers [3]. - Plans for 2025 include establishing a strategic market system centered on clinical value and market demand, enhancing channel integration and terminal expansion [3]. - The company aims to drive sales recovery through profit-oriented industrial marketing and has already seen a quarter-on-quarter improvement in Q1 2025 revenue [3]. Profit Forecast - The company forecasts revenues of 13.91 billion, 15.52 billion, and 17.46 billion for 2025, 2026, and 2027 respectively, with a growth rate of 12% each year [4]. - Net profits are projected to be 560 million, 680 million, and 880 million for the same years, with growth rates of 2001%, 21%, and 30% respectively [4].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% against the market benchmark within the next six months [5][17]. Core Viewpoints - The company's performance in 2024 was significantly impacted by high base effects, social inventory, and tax adjustments, leading to a revenue decline of 20.7% year-on-year, with a net profit drop of 96.8% [2][3]. - Despite the challenges faced in 2024, the company has shown signs of recovery in Q1 2025, with a revenue of 28.3 billion, reflecting a 32.8% year-on-year decrease but an improvement from the previous quarter [2][4]. - The company is implementing a strategic marketing system reform focused on clinical value and market demand, aiming to enhance channel integration and terminal expansion, which is expected to support sales recovery [4][5]. Financial Performance Summary - In 2024, the company achieved a revenue of 123.9 billion, with a gross margin of 39.3% and a net margin of 0.4% [2][3]. - The breakdown of revenue by sector in 2024 shows: - Pharmaceutical industry: 70.4 billion (down 32.3%) - Pharmaceutical commerce: 67.4 billion - Traditional Chinese medicine resources: 10.5 billion - Health and international business: 4.6 billion [3]. - The forecast for 2025 projects revenues of 139.1 billion, with a growth rate of 12%, and net profits of 5.6 billion, reflecting a substantial recovery [5][6]. Earnings Forecast - The earnings forecast for 2025, 2026, and 2027 indicates revenues of 139.1 billion, 155.2 billion, and 174.6 billion respectively, with net profits expected to rise significantly from 5.6 billion in 2025 to 8.8 billion in 2027 [5][6]. - The projected growth rates for net profit are 2001% in 2025, 21% in 2026, and 30% in 2027, indicating a strong recovery trajectory [5][6]. Market Position and Strategy - The company is focusing on innovative marketing strategies to reach younger consumers and enhance brand influence through collaborations with media outlets [4]. - The establishment of a strategic market system centered on clinical value and market demand is expected to drive sales growth and improve overall performance [4][5].

Core Insights - The company reported a revenue of 12.386 billion, a year-on-year decline of 20.72%, and a net profit attributable to shareholders of 0.027 billion, down 96.76% year-on-year [1] - The company is facing short-term performance pressure due to high inventory levels and a high base from 2023, leading to a significant drop in sales across various therapeutic areas [2] - The company is undergoing marketing transformation aimed at revitalizing its brand and improving sales performance through innovative marketing strategies and organizational restructuring [3] - The company is projected to experience revenue growth in the coming years, with expected revenues of 13.663 billion, 15.047 billion, and 16.627 billion for 2025-2027, reflecting a compound annual growth rate of approximately 10% [4] Financial Performance - In 2024, the company achieved a revenue of 12.386 billion, a decrease of 20.72% year-on-year; net profit attributable to shareholders was 0.027 billion, down 96.76% year-on-year; and non-recurring net profit was 0.039 billion, down 95.02% year-on-year [1] - In Q4 alone, the company reported a revenue of 1.952 billion, a decline of 43.25% year-on-year, with a net loss of 0.518 billion, marking a shift from profit to loss [1] Sales Performance by Therapeutic Area - The pharmaceutical segment generated sales of 7.038 billion, a year-on-year decrease of 32.25%, with notable declines in various therapeutic areas: - Respiratory medications: 2.164 billion, down 18.11% - Digestive and metabolic medications: 1.873 billion, down 35% - Anti-infective drugs: 0.964 billion, down 48.43% - Neurological medications: 0.614 billion, down 31.65% - Health products: 0.605 billion, down 28.77% - Cardiovascular medications: 0.505 billion, down 34.12% - Anti-tumor and immune-regulating drugs: 0.205 billion, down 16.49% [2] Marketing and Organizational Changes - The company is implementing a marketing transformation that includes youth-oriented branding and cross-industry promotions, such as featuring its products at London Fashion Week [3] - The organizational structure has been revised, with the establishment of a market center and sales center, and a reduction of functional departments to 16, aimed at enhancing management efficiency and employee engagement [3] Future Projections - Revenue projections for 2025-2027 are as follows: - 2025: 13.663 billion, growth of 10.31% - 2026: 15.047 billion, growth of 10.13% - 2027: 16.627 billion, growth of 10.50% - Net profit projections for the same period are: - 2025: 0.597 billion, growth of 2138.21% - 2026: 0.732 billion, growth of 22.76% - 2027: 0.861 billion, growth of 17.55% - Earnings per share (EPS) are expected to be 1.07, 1.32, and 1.55 for 2025, 2026, and 2027 respectively [4]