In 2021, jointown's digital transformation will accelerate, the main businesses such as pharmaceutical distribution and general generation brand promotion services will continue to increase, and new formats such as the Wandian Alliance and the BC warehouse integration service platform will provide new momentum for the company's development. In the future, Jointown will continue to invest in digital transformation, improve the efficiency of supply chain services, and achieve comprehensive improvement of operational efficiency and service quality.
The main business continues to improve
After years of development and accumulation, Jointown has rich customer resources and variety advantages, has completed the business layout of all categories, all channels and all scenarios, and initially built a three-dimensional pharmaceutical supply chain service platform that combines online and offline.
In 2021, Jointown will seize the market development opportunities, continue to promote digital transformation and business innovation, and continue to improve the performance of the six main businesses of digital pharmaceutical distribution and supply chain services, total generation brand promotion services, pharmaceutical industry and OEM business, digital retail business, smart logistics and supply chain solutions, and medical health and technology value-added services.
Among them, it is worth noting the general agency brand promotion business, last year Jointown achieved sales of 4.930 billion yuan, an increase of 3.68% year-on-year, the slowdown in growth is mainly affected by the decline in Kewei sales, such as excluding the impact of Kewei, sales increased by 31.06% year-on-year. At present, the general generation has introduced 177 product specifications for new products such as Beiping and Mafulong, and a total of 1426 product specifications for the general agent of the general agent, of which 11 varieties with sales of more than 100 million yuan are 11. In 2021, the general agency brand promotion business of the general agent achieved sales of 8.080 billion yuan, an increase of 16.02% year-on-year, and a gross profit margin of 6.91% (higher net profit margin). The general agent of the equipment group is Johnson & Johnson, Fasson, Linofa, Abbott and other brands in total 325 varieties.
At the same time, Jointown reached strategic cooperation with Xinhua Pharmaceutical (comprehensive cooperation), Luoxin Pharmaceutical (pediatric drugs), Novartis Pharmaceutical (ophthalmic products), Hanyu Pharmaceutical (obstetrics and gynecology products), Bayer (health consumer goods), Johnson & Johnson (personal health care business) and other enterprises last year, with the help of Jointown's marketing network advantages, jointly promote the sinking of brand enterprise product channels to meet the deeper drug and medical needs of patients.
In March this year, Jointown also reached a strategic cooperation with BGI, Huaketai, Heatscape Biology, Oriental Biology, Boosais and Mingde Biology to promote COVID-19 antigen testing products through all channels and help prevent and control the epidemic.
In addition, Jointown's two strategic business segments, medical devices and traditional Chinese medicine, have achieved steady growth.
In 2021, Jointown's medical device segment achieved sales of 24.014 billion yuan, an increase of 12.55% year-on-year, accounting for 19.62% of the company's overall sales; gross profit was 1.619 billion yuan, an increase of 7.98% year-on-year. During the period, the company vigorously promoted the expansion of SPD business, through information software and intelligent equipment, built a digital, intelligent and lean "digital operation service platform for medical supplies (Endetong SPD2.0)", created a digital supply chain ecosystem, and served more than 100 hospital customers, including 14 customers in the top three hospitals.
Sales in the Chinese medicine sector continued to climb, up 11.59% year-on-year to RMB3.239 billion. Among them, the Chinese medicine industry achieved sales revenue of 1.575 billion yuan, an increase of 8.42% year-on-year; gross profit margin of 23.89%, an increase of 1.03 percentage points year-on-year, mainly because of the further improvement of the market recognition of Jiuxin's self-produced refined drink tablets. As a platform company of Traditional Chinese medicine industry, Jointown Nine Faith Chinese Medicine is based on the big health industry of traditional Chinese medicine and carries out the deep ploughing layout of the whole industrial chain. In 2021, the brand influence of Jiuxin Chinese Medicine was enhanced, and it won the honor of "Top 100 Chinese Medicine Enterprises in China".
New formats contribute new momentum
In order to enhance the growth momentum, Jointown is actively increasing the layout of new formats.
The "Ten Thousand Stores Alliance" plan has made breakthrough progress, the plan is Jointown in 2021 for the country to launch the retail terminal empowerment project, the current self-operated and franchised pharmacies have 6138, covering 28 provinces and cities across the country, is expected to exceed 10,000 by the end of 2022, and strive to develop the alliance pharmacies in the next 3 years to reach more than 30,000, serving more than 100 million C-end members.
With Jointown obtaining the first Internet hospital license, the C-end "Power Health" service platform was officially launched, and the user-side service capacity grew rapidly on the external user-side and doctor-side mobile applications, with an average daily prescription of more than 120,000.
Extending to the C-end is also the logistics supply chain service capabilities, last year Jointown has been in Guangdong, Shanghai, Jiangsu, Hubei 4 warehouse transformation and upgrading, BC integrated warehouse trial operation, the daily revenue rate of more than 99%, greatly improving the efficiency of supply chain services. In December 2021, Jointown cooperated with Alibaba Health to provide it with professional pharmaceutical logistics operations and BC warehouse integration services, and the warehouse has been put into trial operation.
As a leader in China's private pharmaceutical field, Jointown has completed the infrastructure of the pharmaceutical supply chain service platform covering more than 96% of the administrative regions of the country, including 141 warehouses and operating facilities with a total construction area of 4.1 million square meters, of which 2.57 million square meters of warehouse facilities and 519 cold storage facilities (area of 45,000 square meters and volume of 105,000 cubic meters) are in line with GSP standards. Relying on the Kyushu cloud warehouse platform, Jointown has established a national vertical unified standard operation management system, logistics technology and service level is outstanding, while serving upstream and downstream customers in the pharmaceutical industry, give full play to its own logistics technology and service advantages, export service technology and supply chain solutions, has cooperated with 12 pharmaceutical and consumer goods enterprises including Moutai and has completed the transformation from "cost center" to "profit center".
In November 2021, jointown logistics team won the bid to undertake the construction of the "Moutai Digital Marketing Platform" sub-project in the form of public bidding, and designed a logistics management platform with full link, visualization and full traceability of integrated warehouse, transportation and distribution. At present, the front-end application of Moutai digital marketing platform "i Moutai" has been officially launched and operated, and has achieved great success.
Build digital Jointown in the future
With the accelerated integration of Internet technology and the pharmaceutical circulation industry, the demand for medical reform, medical and health policies and market development has intensified, and the digital transformation and upgrading of the pharmaceutical industry is imperative. As a connector in the pharmaceutical industry, Jointown responds to policy and market changes, actively explores innovative development models, uses digital technology to empower enterprises, and improves business efficiency and service quality.
In 2021, the performance of Jointown B2B e-commerce was remarkable, with sales of 14.47 billion yuan, an increase of 13.94% year-on-year, accounting for 11.83%. At present, the e-commerce business has developed into an important business channel of Jointown, among which, in cooperation with the Internet platform, the supply chain service of providing medical and health products has brought 4.000 billion yuan of revenue to Jointown, an increase of 19.55% year-on-year, and the Internet e-commerce platform mainly includes Ali Health, Jingdong Health and other domestic leading Internet traffic platforms.
It is worth noting that in 2021, Jointown Logistics and Ali Health reached an in-depth cooperation, and Jointown used the advantages of drug supply chain, logistics network and logistics technology to provide Ali Health with tailor-made pharmaceutical logistics BC integration services and promote in-depth cooperation between the two sides in the pharmaceutical supply chain.
At the same time, Jointown's own FBBC e-commerce platform channel business line also completed sales of 10.470 billion yuan, an increase of 11.93% year-on-year. FBBC e-commerce platform is Jointown to fully play the advantages of all categories, omni-channel, all-scenario services, and in line with the General Trend of Internet + Medical proposed business model, "F" is the upstream pharmaceutical production enterprises, the first "B" is Jointown, the second "B" is the terminal pharmacy and clinic, "C" is the consumer, and tries to gradually integrate all transactions in the upstream and downstream of the pharmaceutical industry into the "FBBC" platform.
While using the Internet to carry out innovative business, Jointown also actively uses digital technology to explore the digital transformation of enterprises. In March this year, Jointown held a digital transformation publicity conference, focusing on the transformation goal of building a digital Jointown, improving customer satisfaction, and improving operational efficiency and effectiveness, adhering to the "two-wheel drive" of business and digital technology, following the "customer-centric, data-driven, overall planning, and step-by-step implementation" to carry out actions, and building a digital pharmaceutical enterprise governance system with complete data infrastructure, strong technology, rich user application scenarios, and active industrial ecology.
In the future, Jointown will continue to invest in the development of e-commerce business, take digitalization as the starting point, improve the efficiency of supply chain services, and help production enterprises quickly supply the terminal market in order to obtain long-term development opportunities.