On the evening of April 28, Chinese Health released its 2023 annual report: revenue in 2023 was 3.797 billion yuan, a year-on-year increase of 16.39%.
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01
The revenue in 2023 will be 3.797 billion yuan,
Year-on-year increase of 16.39%
Focusing on the field of medicine and health, on the basis of the field of pharmaceutical circulation, the company deployed in the industrial field through mergers and acquisitions during the reporting period, and the operating income composition of retail business and other business segments basically maintained a balanced ratio of about 70%:30%.
According to reports, Chinese Health focuses on the "1234 development strategy", that is, focusing on the field of medicine and health, focusing on the 1 core area of the pharmaceutical retail terminal business, focusing on the 2 directions of product matrix and pharmacy terminal construction, and building 4 major sectors of retail business, drug agency, terminal centralized procurement, R&D and production through the three engines of pharmacy business school, digital intelligence research institute and pharmaceutical research institute, forming a comprehensive layout of balanced development, benign synergy and complementary advantages of each business segment, and a high degree of penetration around the pharmaceutical retail ecological network.
According to the 2023 annual report, Chinese Health achieved operating income of 3.797 billion yuan in 2023, a year-on-year increase of 16.39%, of which the retail business achieved operating income of 2.611 billion yuan, a year-on-year increase of 16.94%, contributing nearly 70% of the operating income, which is the key to affecting the company's business scale. The agency business achieved an operating income of 742 million yuan, a year-on-year increase of 1.17%, the terminal centralized procurement business achieved an operating income of 291 million yuan, a year-on-year increase of 24.70%, and the industrial production business achieved an operating income of 78 million yuan (August-December).
Key accounting data and financial indicators of Chinese Health in 2023
Source: Chinese Health Financial Report
According to Chinese Health, the company adheres to the business model of direct chain and the steady development strategy of regional deep cultivation, and further expands Zhejiang, Jiangsu and other East China market provinces on the basis of consolidating its dominant position and market share in the Anhui market through new opening, mergers and acquisitions, franchises, etc., and increases the coverage of blank markets and weak areas;
On the other hand, it accelerates digital transformation, improves management efficiency and optimizes organizational processes. Strengthen chronic disease management services and membership management, supplement and optimize product structure and improve product categories according to customer needs, so as to meet the needs of customers at different consumption levels. By strengthening the strategic synergy of linkage and joint procurement of various sectors, we can reduce procurement costs and improve product quality, strengthen cooperation with brand manufacturers, and highlight brand building and dynamic sales promotion.
On the same day, Chinese Health released its first quarter report for 2024. According to the financial report, the revenue in the first quarter of 2024 will be about 1.104 billion yuan, an increase of 30.6% year-on-year, the net profit attributable to shareholders of listed companies will be about 47.77 million yuan, an increase of 62.03% year-on-year, and the basic earnings per share will be 0.1194 yuan, an increase of 45.79% year-on-year.
02
The number of directly operated stores reached 1,383,
It is distributed in Anhui, Henan and Jiangsu provinces
At this stage, the number of stores ranks first in the province, and gradually formed the existing advantages of leading in the province and the leading and continuous penetration in East China.
During the reporting period, Chinese Health added 390 directly operated stores, including 141 new stores and 249 merger and acquisition stores. There are 386 new stores in Anhui Province, which have spread to 14 prefecture-level cities in Anhui Province, with more than 8 million members, and the market sinking strategy has achieved results, achieving leading advantages in new markets in many counties, and further consolidating Anhui's leading position in the market. At the same time, it will continue to focus on East China and radiate the surrounding markets through new openings, mergers and acquisitions, equity participation, etc.
Distribution of Chinese health directly operated stores
Source: Chinese Health Financial Report
As of the end of the reporting period, Guosheng Pharmacy had 1,383 directly-operated stores, which were distributed in Anhui, Henan and Jiangsu provinces, with 1,348, 4 and 31 stores in the local area respectively.
In terms of medical insurance qualifications, as of December 31, 2023, among the 1,383 directly-operated chain stores of Chinese Health, 1,280 stores have obtained the qualification of "designated retail pharmacies for medical insurance", accounting for 92.55% of the total number of stores, and 67 stores have obtained the qualification of co-ordinated stores, accounting for 4.84% of the total number of stores.
In terms of new retail, during the reporting period, Chinese Health actively promoted the integration of online and offline, further consolidated the foundation of e-commerce, and entered platforms such as "Tmall", "JD.com", "Pinduoduo" and "Eleme" to carry out B2C business, taking the development of mobile terminals and the Internet as an opportunity to vigorously promote the development of e-commerce business and open up online and offline channels; relying on the layout of offline stores, it quickly responded to the needs of consumers, realized the full coverage of O2O business through multiple channels, and provided users with a full range of health services.
In 2023, Chinese Health will achieve online sales of 645 million yuan, a year-on-year increase of 15.95%. Among them, O2O sales were 241 million yuan, a year-on-year increase of 38.22%, and there were 1,333 O2O online direct stores. At the same time, it actively builds enterprise private domain traffic, develops apps and mini programs, strengthens application promotion and member customer management, actively develops private domain traffic, cultivates member stickiness, and further enhances its competitiveness.
In addition, Chinese Health continued to strengthen the application and construction of hospital-side stores, dual-channel qualified stores, co-ordinated stores and other projects to improve the offline store channels to undertake the circulation of specialty drug products and prescriptions, so as to facilitate customers to purchase medicines, and DTP sales continued to increase steadily. At the same time, it actively explores and steadily carries out the franchise business of pharmacies, gradually establishes a professional franchise service team and systematic franchise service standards, and improves the customer's operating level and business results through digital intelligence empowerment, operation empowerment, commodity empowerment, training empowerment, etc., and has developed nearly 100 franchised stores during the reporting period.
In addition to the retail business, in 2023, the centralized procurement business of Chinese health terminals will continue to develop rapidly, providing one-stop distribution services for retail terminals such as single pharmacies and small chain pharmacies, and guiding and implementing the supply of all categories. Through in-depth empowerment of customers through store teaching, centralized product procurement, personnel training, informatization and other means, the number of cooperative stores will grow steadily in 2023, and as of the end of the reporting period, there will be more than 1,200 stores of centralized procurement member customers.
In terms of pharmaceutical industry business, from August to December 2023, the industrial production business achieved an operating income of 78 million yuan, 43 approvals for Chinese Health's own pharmaceutical preparations, 9 approvals for APIs, 1 approval for pharmaceutical excipients, 6 approvals for health care products, and nearly 30 product projects under development. Chinese Health continued to complete the expansion of production capacity, continuously implement the transformation of R&D achievements, and further consolidate and empower the production sector.
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