Since 2019, Luyan Pharmaceutical has achieved double growth in revenue and net profit for five consecutive years.
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On the evening of April 15, Luyan Pharmaceutical released its 2023 annual report. In 2023, Luyan Pharmaceutical achieved operating income of 19.846 billion yuan, a year-on-year increase of 1.97%, and net profit attributable to shareholders of listed companies of 364 million yuan, a year-on-year increase of 5.32%, achieving double growth in revenue and net profit for five consecutive years since 2019.
The picture is from the company's annual report
01
Pharmaceutical wholesale business accounted for 9% of revenue
Gross margin 6.55%
Luyan Pharmaceutical's main business is the distribution of medicines, traditional Chinese medicine decoction pieces, medical devices and other distribution and pharmaceutical retail chains, and the main source of revenue is pharmaceutical wholesale sales revenue.
Judging from the report, pharmaceutical wholesale sales revenue accounted for more than ninety percent of the total revenue, and the gross profit margin was 6.55%, a decrease of 0.40% from the same period last year. Fujian, Sichuan and Jiangxi are the main sales regions, and the Fujian market contributed 71.13% of the business revenue.
Revenue of each business segment during the reporting period:
Pharmaceutical wholesale: revenue was 18.249 billion, a year-on-year increase of 0.31%, accounting for 91.95% of total revenue;
Pharmaceutical retail: revenue was 1.042 billion, a year-on-year increase of 23.02%, accounting for 5.25% of total revenue;
Pharmaceutical industry: revenue was 494 million, a year-on-year increase of 34.69%, accounting for 2.49% of total revenue
Others: revenue was 60.5552 million, a year-on-year increase of 7.03%, accounting for 0.31% of total revenue.
The picture is from the company's annual report
Luyan Pharmaceutical also released its 2024Q1 financial report, with revenue of 5.136 billion yuan in the first quarter, a year-on-year increase of 6.08%, and a net profit attributable to the parent company of 83.7764 million yuan, a year-on-year increase of 4.90%.
02
There are 256 directly-operated stores
There are 81 DTP pharmacies
In 2023, the sales revenue of Luyan Pharmaceutical's retail business will increase by 23.02% year-on-year, with a gratifying growth rate.
As of December 31, 2023, there were 256 directly-operated pharmacies (including 81 DTP pharmacies) in Fujian Province, including 204 pharmacies with medical insurance qualifications and 38 pharmacies with dual-channel qualifications, basically covering the third-level medical institutions in Fujian Province, and the comprehensive strength and direct sales power of chain pharmacies are in the leading position in Fujian Province.
During the reporting period, the company actively explored the construction of new retail channels. Undertake innovative projects of manufacturers, explore the path of chronic disease management in the province, and work with tertiary medical institutions to explore innovative service models for special patients to meet the health needs of patients, and explore new platforms and new models with multi-party participation. Increasing efforts in e-commerce channels, boosting the development of e-commerce, strengthening traffic acquisition capacity, deepening brand awareness, and achieving annual O2O and B2C sales growth.
03
Make efforts in the field of traditional Chinese medicine
In 2023, the sales revenue of Luyan Pharmaceutical Industry will increase by 34.69% year-on-year, becoming the fastest growing business segment.
Luyan Pharmaceutical actively promotes the construction of the "Modern Chinese Medicine Production Project" and expands the modern Chinese medicine business. During the reporting period, the bidding for the joint procurement of traditional Chinese medicine decoction pieces began to be implemented, and the company fully participated in the bidding according to the requirements of joint procurement, and a total of 7 varieties and 12 specifications were successfully selected into the list of bid-winning suppliers; attached importance to R&D investment and technology upgrading, actively participated in traditional Chinese medicine-related scientific research projects, strengthened research on the quality standards of Chinese herbal medicines and Chinese medicine decoction pieces, and independently developed the information traceability system of traditional Chinese medicine decoction pieces in the full variety of Chinese medicine decoction pieces produced by the company, and the company's products have been sampled and inspected with a compliance rate of 100% for many years; Set up a strategic procurement team, strengthen procurement management, adhere to the strategy of all varieties, and make every effort to promote the construction of Bozhou modern Chinese medicine production project, as of the date of issuance of the report, the civil engineering of the first phase of the project has been basically completed, the project has entered the stage of internal decoration and equipment installation, and the project is progressing smoothly as planned.
04
2024 Business Plan
Pharmaceutical distribution business: take drug distribution as the starting point, promote the integration of resources between modules, and promote regional balanced development; strengthen platform construction, integrate the resources of regional platforms, member companies and production enterprises, build and establish the brand image of Luyan as a "health product and service provider", strengthen the brand influence of Luyan with the help of publicity and resource integration of head production enterprises, accelerate the adjustment and implementation of the business assessment mechanism of the platform and each member company, and establish a mechanism for the introduction, exchange and training of talents at all levels.
Equipment business: do a good job in the docking, point distribution and landing of centralized procurement of equipment, establish a specialized business department in a timely manner, and transform into a diversified comprehensive service provider; actively seek to develop the national platform business, combine the qualification of Xiamen bonded warehouse to strive for import business; timely layout of the service items of the laboratory department; actively expand the equipment market outside the province, develop the equipment business in Sichuan and Jiangxi, and implement the group's four-pronged strategy.
Retail business: enrich the products on the shelves of stores, optimize the allocation of goods, improve the sales rate of goods, online and offline omni-channel sales, expand new stores, increase the scale effect, improve the job responsibilities and working mechanisms of various retail positions, establish a store staff training system, pilot the operation of characteristic stores, and improve performance.
Modern Chinese medicine business: We will make every effort to promote the construction of the Luyan Bozhou Traditional Chinese Medicine Industrial Park project, strengthen the capacity building of Yanlaifu and Bozhou Traditional Chinese Medicine Decoction Factories, continue to optimize procurement management, and promote the improvement of the market scale of traditional Chinese medicine decoction pieces products in the coordination of pharmaceutical wholesale and pharmaceutical retail, so as to achieve rapid business expansion, increase the scale of production capacity, develop the decoction market, and actively promote the shared pharmacy co-construction project of key medical institutions to enhance the stickiness of key customers in multiple dimensions.
New business formats: Promote the construction of logistics network and the group's logistics system, promote the steady development of vaccine and bonded warehouse business, establish data centers and big data management pilots, explore the application scenarios of artificial intelligence technology, explore the development path of e-commerce, and build a business platform integrating distribution, retail and logistics.
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