Yixintang Pharmaceutical (SZ:002727)2022-12-08 09:28Group 1: E-commerce Development - The company plans to invest 200 million in e-commerce, with over 80 million already spent on information technology [2] - The primary model is O2O (Online to Offline), with practices already implemented in some stores [2] - The company has partnered with SAP Hybris and Infosys Lodestone to advance its e-commerce projects [2] Group 2: Store Development and Profitability - As of September 30, 2014, the company operates 2,480 direct chain stores, with 1,915 in Yunnan and 141 in Sichuan [3] - New stores are expected to achieve profitability within 12 months and recover initial losses by the 26th month [3] - Historical data indicates a consistent growth rate for new stores over a six-year period, although the growth rate may vary by location [3] Group 3: Gross Margin Growth - The company’s core business is pharmaceutical retail and wholesale, with retail being the primary revenue source [4] - Currently, 60% of sales come from direct purchases from manufacturers, while 40% come from wholesalers, contributing to improved gross margins [5] - The company is establishing a national procurement network to optimize purchasing prices across different channels [5] - Different procurement methods yield varying gross margins, with direct purchases from manufacturers providing higher margins [5]