As of the end of April, the 2023 annual reports of the six private listed chains of Laobaimin, Yifeng, Dashenlin, Yixintang, Shuyu Civilian, and Jianzhijia have been released. Judging from the annual report data, the revenue of many enterprises continues to grow, and the number of stores continues to grow.
Organize | Yoshiko
01
In 2023, revenue will basically maintain steady growth
In 2023, the performance of the six major private listed chain enterprises (hereinafter referred to as the six listed chains) will basically maintain a steady growth trend.
Data source: The financial report of the above-mentioned enterprises, charted by "Caizhi of the First Pharmacy".
Judging from the financial data of the six listed chains, the revenue of the three enterprises of Laobaimin, Yifeng and Dashenlin exceeded 20 billion yuan, achieving double growth in revenue and profit. Among them, Dashenlin topped the list, with revenue of 24.53 billion yuan in 2023, an increase of 15.45% over the same period of the previous year.
From the perspective of growth rate, Jianzhijia grew rapidly, with a year-on-year increase of 20.84%, and the overall growth rate slowed down compared with the first three quarters. Jian Zhijia said that the surge in sales of goods due to the epidemic in December 2022 brought about a high base impact, and the company's operating income in the fourth quarter of 2023 returned to normal, down 8.00% from the same period last year.
In terms of profit attributable to the parent company, the performance of the people was relatively bright, with an increase of 18.35%. Yifeng, Dashenlin, and Jianzhijia remained at about 10%. However, there was a decrease of 45.6% and 42.01% respectively in Yixintang and Sotama civilians.
According to the 2023 annual report of Shuyu civilians, the decline in corporate net profit is related to the significant increase in expenses caused by the new logistics center, the increase in financing costs, the increase in non-operating expenses, and the inconsistent implementation of medical insurance reform policies. In 2023, Shuyu civilians will deploy provincial and regional distribution centers in Shandong, Heilongjiang, Liaoning, Fujian, Jilin and other provinces. The large upfront investment in the new logistics center has led to a significant increase in the company's operating costs in 2023. At the same time, in the second half of the year, the medical insurance reform policies in various places were gradually implemented, and the implementation progress of the medical insurance co-ordination policy was inconsistent in the business area where the residents of Shuyu were located, which had a temporary impact on the normal operating profits of the stores.
02
The number of stores continues to climb
At present, accelerating store expansion is still the main measure for chain retail enterprises to improve their performance, and it is also an important action for the six listed chains this year.
Data source: The financial report of the above-mentioned enterprises, charted by "Caizhi of the First Pharmacy".
In 2023, the number of four chain pharmacies of Laobaimin, Yifeng, Dashenlin and Yixintang will exceed 10,000, of which the number of Dashenlin stores will reach 14,074 to rank first, including 9,909 directly operated stores and 4,165 franchised stores. Dashenlin said that during the reporting period, the company's stores have covered 19 provinces (autonomous regions and municipalities directly under the central government) across the country, with 1,382 newly opened self-built stores, 2,158 franchised stores, 750 merger and acquisition stores, 3 new provinces (autonomous regions and municipalities directly under the central government), and 31 new prefecture-level cities and provincial counties. At the same time, Dashenlin closed 261 stores during the reporting period.
The number of ordinary stores also continues to expand. As of December 31, 2023, the company has built a marketing network covering 13,574 stores in 18 provinces and more than 150 prefecture-level cities across the country, including 9,180 directly operated stores and 4,394 franchised stores. In 2023, 3,388 new stores will be added, including 1,802 (1,471 self-built and 331 self-built) directly operated new stores, and 1,586 franchised new stores, an increase of nearly 50% over the number of new stores last year. Among the 3,388 new stores added this year, there are 2,913 stores in advantageous provinces and key cities, accounting for 86%.
During the reporting period, Yifeng adhered to the development strategy of "regional focus and steady expansion", and deeply cultivated the market in Central and East China through the store expansion model of "new opening + M&A + franchise", adding 3,196 new stores, including 1,613 self-built stores, 559 M&A stores and 1,024 franchised stores. In addition, during the reporting period, 61 stores were relocated and 153 stores were closed. As of the end of the reporting period, the total number of Yifeng stores was 13,250 (including 2,986 franchised stores), a net increase of 2,982 stores from the end of the previous period.
It is worth noting that the number of Yixintang stores will exceed 10,000 in 2023. As of December 31, 2023, the Company and its wholly-owned subsidiaries had a total of 10,255 directly-operated chain stores, covering 10 provinces and municipalities directly under the central government. Among them, the number of stores in Yunnan Province accounted for 52.63%, and the number of stores outside Yunnan Province accounted for 47.37%, an increase of 4.12% from the beginning of the year. In the future, Yixintang will continue to increase the proportion of stores outside Yunnan Province, comprehensively increase the market share of the southwest, focus on the layout of South China and North China, and form a market expansion pattern with Southwest China as the core business area, South China as the strategic in-depth business area, North China as the supplementary business area, and Central China and East China as the gradual exploration of business areas.
As of the end of the reporting period, the number of stores of Soyu Civilians and Jianzhijia has also expanded to varying degrees. Shuyu civilians have a total of 7,337 stores in Shandong Province, Liaoning Province, Heilongjiang Province, Fujian Province, Henan Province, Gansu Province and other regions, and 1,881 new stores throughout the year, which mentioned that the increase in the number of stores is the main factor for the growth of enterprise operating income. Jianzhijia strategically expanded its physical store network through self-construction and acquisition, with a net increase of 1,061 stores in the period, a growth rate of 26.17%, and a store scale of 5,116.
03
New retail revenue continues to grow
In the new retail sector, the six major listed chains actively explore new retail business models to meet the drug purchase needs of various consumers through different channels in different forms. During the reporting period, Yifeng, Yixintang, Laobaimin, Shuyu Civilian, and Jianzhijia all disclosed some of their new retail sales revenue in 2023.
Relying on digitalization to drive omni-channel efforts, the new retail business continues to maintain rapid development, with total online channel sales of about 2 billion yuan in 2023, a year-on-year increase of 38%. In terms of the public domain, the company's O2O and B2C sales ranked fifth and third in the market in 2023, respectively. In terms of private domain, the company's "People's Pharmacy" mini program provides 24-hour online services, with sales of about 100 million yuan in 2023 and more than 400,000 annual service users. As of the end of the reporting period, the company had 10,663 O2O takeaway service stores and 626 24-hour stores.
According to the report, Yifeng B2C and O2O achieved sales revenue of 1.818 billion yuan (excluding tax), of which O2O (excluding franchise) achieved sales revenue of 1.399 billion yuan and B2C sales revenue of 419 million yuan. According to reports, Yifeng O2O has more than 9,000 online direct stores, and more than 600 24-hour business distribution stores, covering all major cities of the company's offline, and can quickly cover M&A projects and franchise project stores, and are at the industry-leading level in picking timeliness, delivery timeliness, order satisfaction rate and human efficiency.
During the reporting period, the online channel achieved a total operating income of 2.164 billion 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.
Yixintang's new retail business sales in 2023 will be 876 million, and its O2O channel sales will account for about 74%. Driven by the troika of B2C, O2O and private domain operations, the performance of Shuyu civilians continued to grow during the reporting period, with sales reaching 1.29 billion, a year-on-year increase of 39.6%. During the reporting period, the sales of new retail business (O2O + B2C) increased by 45.25% year-on-year, of which the online rate of stores covered by O2O drug delivery service reached 79.17%.
04
Number of members: 3 companies with more than 80 million + members
Membership is an important part of private domain traffic, and it is also the core force that contributes to chain sales. In the 2023 annual report, Laobaimin, Yifeng, Dashenlin, and Jianzhijia also announced the membership development of each pharmacy. Among them, Dashenlin has 93.94 million members, ranking first among the above-mentioned chains, with 14.14 million new members during the reporting period.
The total number of ordinary members reached 86.35 million, including 26.92 million active members and 15.12 million newly registered members, accounting for about 75% of member sales. The cumulative number of registered members of Yifeng reached 87.1 million, which was comparable to that of the people, an increase of 23.21% year-on-year, and the proportion of member sales was 77.4%, an increase of 2.89% year-on-year.
It can also be found from the annual report that major pharmacies mentioned that in terms of membership management, they will be empowered with the help of digital power. The people said that relying on the advantages of big data technology and store scenarios, the company's member operation has established a complete closed-loop management system, and the refined service ability of members has been continuously improved. Yifeng uses information technology and Internet technology to gradually realize multiple intensive management functions such as efficient and intelligent member information management, online and offline integrated marketing, user health record management, and online consultation of pharmacists. Through continuous improvement of member portraits, AI crowd models, and the output of online and offline membership integration strategies, Dashenlin has formed a differentiated precision marketing service system integrating headquarters, regions and stores.
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