On the evening of April 26, Jianzhijia (605266) released its 2023 annual report and 2024 first quarter report.
Finishing | Uncle Mo
01
In 2023, the revenue will be 9.081 billion yuan,
The net profit was 414 million yuan
According to the annual report, Jianzhijia's operating income in 2023 will be 9.081 billion yuan, a year-on-year increase of 20.84%. net profit attributable to shareholders of listed companies was 414 million yuan, a year-on-year increase of 10.72%. The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 400 million yuan, a year-on-year increase of 7.26%.
In terms of quarters, Jianzhijia has achieved double growth in revenue and net profit in the first three quarters of 2023. The company's operating income in the fourth quarter of 2023 returned to normal, down 8.00% from the same period last year, and increased by 65% from the sales revenue of 1.568 billion yuan in the fourth quarter of 2021, which was roughly equivalent to the 68% growth rate of stores. In the fourth quarter, sales expenses and management expenses were effectively controlled, and the expenses during the period were basically the same as the same period last year, and the comprehensive gross profit margin increased by 0.45%.
02
There was a net increase of 1,061 stores in the period
3-year store growth of 140.19%
From the perspective of the market as a whole, the annual report said that the uncertainty of economic recovery in 2023 has led to a weakening of consumer income expectations, affecting consumer willingness and confidence, and the growth of the pharmaceutical retail market is sluggish. Pharmaceutical reform policies such as individual account reform and outpatient co-ordination have been gradually promoted, but after the implementation of the individual account reform, outpatient co-ordination policies such as diagnosis and treatment standard requirements, prescription circulation, pharmacy qualification requirements, reimbursement amount control, and policy promotion are different from province to province and are still being explored, which has a wide impact on the industry.
Due to the fact that the source of prescriptions has not yet broken through, the outflow of prescriptions is small, and the reform of personal accounts affects the consumption behavior of customers, the customer dividend of the outpatient co-ordination policy has not yet been presented. At the intersection of the old and new cycles in the pharmaceutical retail industry, it is facing new opportunities and challenges.
During the reporting period, Jianzhijia strategically expanded its physical store network through self-construction and acquisition, with a net increase of 1,061 stores in 2023, a growth rate of 26.17%, and a store scale of 5,116. Through the organic growth of new stores and old stores, the omni-channel online business increased by 54.58% year-on-year, and the professional value of social pharmacy terminals was highlighted, driving the steady increase in supplier service revenue, which jointly drove the operating income to increase by 20.84% over the previous period.
Jianzhijia also mentioned that since its listing 3 years ago (2021-2023), the store layout area has extended from 4 provinces in southwest China to north China, covering 6 provinces and cities. The number of stores increased from 2,130 at the beginning of 2021 to 5,116 at the end of 2023, an increase of 140.19%. The number of stores, operating income and net profit achieved a high compound annual growth rate of 33.92%, 26.69% and 19.05% respectively.
In terms of regional development, Jianzhijia will take Yunnan and Hebei as the cornerstone of profitability to support continuous expansion, and improve profitability while continuing to deepen and expand; Chongqing and Liaoning will grow rapidly and build new profit centers; Guangxi and Sichuan will continue to expand and follow up the development steadily and quickly.
In terms of the regional distribution and ping efficiency of pharmaceutical retail stores, the average daily ping efficiency in 2023 will be 40.35 yuan/square meter.
As of the end of the year, a total of 389 pharmacies of Jianzhijia had opened outpatient co-ordination qualifications, accounting for 8.14% of the total number of stores, 585 stores for chronic diseases, 209 stores for special diseases, 139 stores with dual-channel qualifications, and 4,343 pharmacies had obtained the qualifications of various types of "designated retail pharmacies for medical insurance", accounting for 90.91% of the total number of pharmacies.
03
A total of 2.5 million people have been provided with chronic disease services
The proportion of medical insurance settlement income decreased from 52% to 46%
Jianzhijia said in the annual report that in order to meet the needs of customers for "prevention and health management" for health and quality life, the company took the initiative to shift from "relying on medical insurance" and drug price competition to insisting on strengthening professional pharmacy services and health management service capabilities.
In terms of chronic disease management, Jianzhijia's chronic disease management system has been established and continuously improved since 2011, and as of the end of the reporting period, a total of 2.5 million chronic disease services have been filed, a year-on-year increase of 66%; Monitor and improve chronic disease indicators.
In terms of specialization, Jianzhijia continued to build specialized pharmacies for dermatology, ophthalmology, respiratory diseases, diabetes, etc., and at the end of the reporting period, there were 1,135 specialty pharmacies, accounting for 23.76% of the total number of pharmacies.
It is worth noting that Jianzhijia mentioned that the health awareness of customers has improved, and the rational consumption trend of "you can buy expensive, but you can't buy expensive" is clear; the company's regional prescription sources are lacking, circulation is small, and the outpatient co-ordination policy customer dividend has not yet been presented, and the proportion of medical insurance settlement income (mainly medical insurance personal accounts) in operating income will decrease from 52% in 2022 to 46% in 2023.
04
Online channel revenue increased by 54.58% year-on-year
Actively explore diversified models
Jianzhijia said that around customer needs, the company adheres to the "diversification of store types and service specialization", and takes community professional pharmacies as the core in the main business of pharmaceutical retail, positioning itself in "health + professionalism + convenience", and Zhijia convenience is positioned in "quality + fashion + fast", and the store types and categories of pharmacies and convenience stores together constitute the important business characteristics of the company on the basis of regulatory compliance, long-term learning, exploration of the United States and Japan counterpart model, and distinguishing it from most pharmaceutical peers. Through traditional Chinese medicine clinics, community clinics, physical examination centers and other store types, the company gradually explores a diversified community health service ecosystem model with multi-format integration.
For the construction of online channels, Jianzhijia insists on cultivating its own team to carry out online business operations.
- (1) After years of deep cultivation, the B2C business of the third-party platform has gradually matured and has become a powerful tool for the company to strive for the incremental market of services.
- (2) The third-party platform O2O business meets the differentiated needs of customers by improving supply chain capabilities, rationally laying out regional center stores, and relying on offline physical stores, with a store coverage rate of 89.87%, of which 24-hour and night shift stores account for 15.11%, enhancing customer stickiness and controlling costs through refined operations.
- (3) The company's self-built O2O platform, Jiaegou, provides customers with professional and long-tail product categories by strengthening the creation of specialty long-term medication solutions and differentiated marketing;
From January to March 2024, the online channel achieved a total operating income of 540.9861 million yuan, an increase of 12.78% over the same period of the previous year, accounting for 23.38% of the operating income, an increase of 1.24% from the same period of the previous year accounting for 22.14% of the operating income, and the online and offline omni-channel service model was stable and developing rapidly.
With the gradual maturity of the e-commerce business, the rapid growth trend of the traditional B2C business and the self-operated platform business in the past has declined for the first time, and the growth rate of the third-party platform O2O business still reaches 48.84%.
During the reporting period, the operating income of online channels totaled 2164.2818 million yuan, an increase of 54.58% over the same period of last year, accounting for 23.83% of operating income, an increase of 5.20% over the same period of last year.
05
Q1 revenue growth of 6.79%
Jianzhijia also released its first-quarter performance report on the evening of April 26, which showed that the operating income in Q1 of 2024 was 2.314 billion yuan, a year-on-year increase of 6.79%, and the net profit attributable to shareholders of listed companies was 52.26 million, a year-on-year decrease of 31.51%.
Jianzhijia said that the number of stores in the current period increased by 1,071 compared with the end of the first quarter of last year, an increase of 25.55%, and it is basically new stores and acquired stores that are being integrated, and the comprehensive gross profit contributed by the increase in low income cannot cover the rigid growth of 19.98% of the period expenses brought about by the 25.55% increase in stores, resulting in a net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses of 50.4321 million yuan, a year-on-year decrease of 32.32% compared with the first quarter of 2023, which is slightly higher than the base.
END
Business cooperation/reprint
Please contact: 13610303540