Yixintang Pharmaceutical (SZ:002727)2022-12-08 06:42Store Growth and Profitability - New stores begin normal operations from the third month and achieve profitability by the 12th month, with cumulative profitability reached by the 26th month [1] - The company has experienced a 30% profit growth over the past three years, primarily from the maturation of existing stores and enhanced brand collaboration [1] Expansion Plans - The company aims to strengthen its market position in Yunnan and expand into Sichuan, Guangxi, Guizhou, Chongqing, and Shanxi, targeting to become one of the top three pharmaceutical retail chains in China [1] - Focus on direct retail chain expansion and improving logistics and supply chain integration to enhance scale benefits [1] Brand Collaboration and Supply Chain Integration - As of December 31, 2013, the company had over 2,300 direct chain stores and 1,194 co-branded products, with the top 100 products accounting for nearly 50% of sales [3][4] - The company directly procures from manufacturers, benefiting from lower prices and favorable terms, with over 60% of total sales coming from direct purchases from manufacturers [5] E-commerce Environment and Practices - The online pharmaceutical market in China was valued at 42.6 billion yuan in 2013, with significant policy changes expected to boost e-commerce growth [6] - The company is exploring e-commerce models, including a website with nearly 3,000 products and partnerships with third-party platforms like Tmall [7] - O2O practices are being implemented in select stores to enhance customer experience and integrate online and offline sales [7]