Finishing | Uncle Mo
Today (April 7), Guoda Pharmacy's parent company, Sinopharm Accord (00028), released its 2023 financial report. In 2023, the operating income of Sinopharm Accord will be about 75.477 billion yuan, an increase of 2.77% year-on-year, and the net profit attributable to shareholders of the listed company will be about 1.599 billion yuan, an increase of 7.57% year-on-year.
In terms of the proportion of revenue, the revenue of Sinopharm Accord in the pharmaceutical wholesale business accounted for 68.57% of the total revenue, the revenue of the pharmaceutical retail business accounted for 30.91%, and the income of other businesses accounted for 0.52%.
In the field of pharmaceutical retail, Guoda Pharmacy, a subsidiary of Sinopharm, is a leading pharmaceutical retail enterprise in terms of sales scale in China. In 2023, Guoda Pharmacy achieved a cumulative operating income of 24.409 billion yuan, a year-on-year increase of 1.26%, a total profit of 713 million yuan, a year-on-year increase of 31.43%, a net profit of 527 million yuan, a year-on-year increase of 50.66%, and a net profit attributable to the parent company of 371 million yuan, a year-on-year increase of 60.99%.
In view of the increase in the net profit of Guoda Pharmacy, the annual report explained that it was mainly due to the increase in profits through the negotiation of core products and the cost control project, the increase in profit margin compared with the same period, and the provision of goodwill impairment losses in the same period last year, which was not the same matter this year.
01
There are 10,516 Guoda Pharmacy outlets
There are 3,012 medical insurance co-ordination stores
As of December 2023, the total number of Guoda Pharmacy stores is 10,516, of which 8,528 are directly operated stores and 1,988 are franchised stores. In 2023, there will be a net increase of 1,203 stores, an increase of 688 stores year-on-year.
Among them, the new directly-operated stores are concentrated in the north and east China, and the new franchise stores are mostly in the north and south China.
As of December 31, 2023, Guoda Pharmacy has obtained 7,736 stores with various medical insurance designation qualifications, accounting for 91% of the company's total number of directly operated stores, 397 dual-channel stores and 3,012 medical insurance co-ordinated stores.
02
The average daily average efficiency in Northwest China is 110 yuan/square meter
The fastest growth in sales of Guoda Pharmacy was in the Northwest and Northern regions, and it is worth noting that the gross profit margin of the stores in the Northwest Region was as low as 13.3%. At the same time, the average daily average efficiency in Northwest China is as high as 110 yuan/square meter, and the rental efficiency is 33%.
In terms of the category structure of retail terminals, the sales proportion of prescription drugs increased by the largest by 4%, while the sales of over-the-counter drugs decreased by 2.08%. In addition, health care products and traditional Chinese medicine decoction pieces have achieved growth, but household health products and other categories have declined.
03
Complete the docking of prescription circulation systems in multiple places
Omni-channel layout for online sales
In terms of online layout, Guoda Pharmacy's O2O model has been settled in platforms such as Meituan, Ele.me, JD Daojia, and JD Pharmaceutical Express, relying on offline physical stores. The B2C model sells to users through online stores on platforms such as Tmall, Pinduoduo, JD.com, and Douyin.
Guoda Pharmacy also pointed out that it is actively responding to online medical insurance payment, undertaking online medical insurance payment access, and piloting Meituan and Ele.me to access online medical insurance payment. At present, there are more than 1,200 pharmacies in operation for more than 15 hours, an increase of 350 from the beginning of the year.
It is worth noting that Guoda Pharmacy has made a lot of achievements in building digitalization, such as:
- Self-operated platform project: It has completed the prescription circulation docking with multiple platforms such as Beijing and Shenzhen, completed the online medical insurance payment docking in Shanghai, and completed the integration of online medical insurance payment in Xinjiang and Shenzhen.
- Master data items: In July, Guoda Pharmacy completed the introduction of new products at all levels, store opening and closing management, leasing management, decoration management, logistics information, personnel management, etc., completed the launch of ERP system for 23 companies, and launched the first management of goods, suppliers and channels, customers and stores of 4 companies in Jilin and connected with the business system.
04
Future opportunities and risks coexist
In the annual report, Sinopharm Accord has 8 prospects for the overall development of the pharmaceutical industry in the future:
- 1. Innovation-driven: As the pharmaceutical industry enters a new stage of development, innovation will become the core driving force for the development of the industry.
- 2. Digital transformation: Digital transformation is one of the important trends in the pharmaceutical industry in the future.
- 3. Globalization trend: With the strengthening of global trade and cooperation, the pharmaceutical market will become more and more globalized.
- 4. Increase in industrial concentration: With the continuous development of the pharmaceutical industry, mergers and acquisitions and resource integration between enterprises will become the norm.
- 5. Integration of health industry: With the increase of people's attention and demand for health, the health industry will become an important growth of the pharmaceutical industry
- 6. Sustained and high-quality development of the pharmaceutical retail industry: In the post-epidemic era, people pay more attention to their own health issues, and the pharmaceutical retail industry is expected to continue to maintain high-quality growth. According to the conservative estimate of the first pharmacy, by 2030, the proportion of the retail channel market will rise to 40%, of which the market size of the pharmacy is estimated to exceed 800 billion yuan.
- 7. Moving the threshold of chronic disease management forward: pharmacies, as social terminals and terminals closest to the patient community, as well as the long-term accumulation of licensed pharmacist teams and resources in stores, have natural advantages in chronic disease management, and are expected to comply with policy guidelines and realize the innovation and development of chronic disease services.
- 8. Pharmaceutical anti-corruption and strict compliance management: From the perspective of medical insurance fund supervision, strict standards will be maintained for pharmaceutical anti-corruption and compliance management covering retail pharmacies. And with the support of the national unified medical insurance information platform tool, medical insurance supervision is intelligent, and the cost of pharmacy violations is increased. As a state-owned enterprise, Guoda Pharmacy has always maintained compliance and will have a greater competitive advantage in the context of strict compliance management.
At the same time, Sinopharm Accord also reminded the industry in its annual report of the possible risks, including: the decline in the gross profit of the selected varieties in the national centralized procurement, the extension of the turnover days of accounts receivable, the decline in the proportion of sales of drugs and equipment consumables, the reduction of outpatient mutual aid, the liberalization of online medical insurance and other policies will have a negative impact on the offline customer flow of pharmacies in the short term, and then further affect the scale of sales; the liberalization of online medical insurance means that pharmacies will face more fierce competition and challenges in the development of online business, especially O2O business; Policies such as zero mark-up for pharmacies have a negative impact on the profitability of pharmacies, such as drug sales scale and gross profit margin.
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