Yifeng Pharmacy Chain (603939) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was ¥11.72 billion, down 0.35% year-over-year due to strategic store closures and slower new store expansion.

• Net profit attributable to shareholders rose 10.32% year-over-year to ¥880 million, reflecting improved profitability from cost controls and operational adjustments.

• The company operated 14,701 stores as of June 30, 2025, with 81 new self-operated stores opened, 272 closed, and 208 new franchise stores added during the period.

• 95.37% of self-operated stores have medical insurance qualifications, and the company’s member base reached 110 million, with member sales accounting for 84.93% of total sales.

Financial highlights

• Operating income: ¥11.72 billion, down 0.35% year-over-year.

• Net profit attributable to shareholders: ¥880 million, up 10.32% year-over-year.

• Operating cash flow: ¥1.57 billion, down 13.84% year-over-year.

• Basic EPS: ¥0.73, up 10.61% year-over-year.

• Gross margin improved due to cost optimization and store network adjustments.

Outlook and guidance

• The company will continue its “regional focus, steady expansion” strategy, emphasizing deep market penetration and operational efficiency.

• Plans to maintain a stable dividend policy, with a proposed interim cash dividend of ¥0.30 per share, totaling ¥364 million.

• Ongoing investment in digitalization, logistics, and member services to drive future growth.