Yunnan Jianzhijia Pharmaceutical Chain Group Co., Ltd.

Company Overview:

  • Brand Established: 1998
  • Main Business: Pharmaceutical retail, convenience retail, and related services
  • Expansion Strategy: Starting from Yunnan and deeply rooted in Southwest China, the company is expanding nationwide. The strategy involves a unified and standardized vertical integration business management system, leveraging a well-established chain retail network and professional pharmaceutical services. The company adheres to the strategies of “group management, diversified operations, and national expansion” and focuses on “penetrating from core cities” while addressing the imbalance and inadequacies in service levels in the pharmaceutical retail industry regarding “health + professionalism + convenience” and the convenience retail industry concerning “quality + fashion + speed.”

Key Developments:

  • December 1, 2020: Successfully listed on the Shanghai Stock Exchange main board.
  • Post-IPO Strategy: The company uses a “self-built + acquisition” dual-drive model to maintain rapid and steady growth, expanding into new markets through acquisitions while densely expanding in existing regions.
  • 2022: The successful acquisition of Tangren Pharmaceutical increased store presence from 4 provinces and cities to 6. As of September 30, 2023, the company operates 4,711 stores nationwide, doubling its scale compared to 2020. The company has established profit centers in Yunnan and Hebei, with rapid development in Chongqing, Guangxi, and Liaoning, and steady growth in Sichuan.

Financial Performance:

  • As of September 30, 2023: Over 18,000 employees.
  • January-September 2023: Achieved revenue of 6.5 billion RMB, net profit of 278 million RMB, and total assets of 9.644 billion RMB.

Operational Characteristics:

  • Diversified Business Model: The company operates a range of business formats, including professional pharmacies, convenience stores, clinics, and health check centers. To meet the evolving consumer demands, the company optimizes its product structure by increasing the introduction of non-pharmaceutical products, proprietary brand products, and imported goods.
  • Brand Positioning: To align with the shift from “using medicine to treat illness” to “prevention and health management,” the company has moved from price competition to a focus on professional health services. The chronic disease management system, established in 2011, has been progressively improved, with 1.8 million members by the end of September 2023.

Membership and Customer Engagement:

  • Brand Image: The company is seen as a “family doctor, health advisor, and good neighbor” in the community. It has developed a stable membership base that aligns with the company’s brand positioning.
  • Membership Data: As of September 30, 2023, the number of active members exceeds 25 million, with member spending accounting for over 70% and a member retention rate of 78%.

Industry Recognition:

  • Sales Scale: Ranked 9th in the “Top 100 Pharmaceutical Retail Enterprises by Sales in 2021” published by the China Pharmaceutical Commercial Association; ranked 10th in the “2021-2022 China Pharmacy Value Top 100” by China Drugstore Magazine.
  • Store Count: Ranked 3rd in the “2021-2022 Top 100 Chain Pharmacies” by China Drugstore Magazine.
  • Competitiveness: Continuously ranked as the “Benchmark Enterprise for Professional Strength” in the China Pharmaceutical Retail Enterprise Comprehensive Competitiveness Rankings for nine years and placed 8th in the “2022-2023 Top 100 Pharmaceutical Retail Enterprises Comprehensive Competitiveness Index.”

Future Outlook: Jianzhijia will continue to uphold its mission of “building credibility with professional spirit and high-quality service, striving to achieve customer satisfaction,” cherishing the opportunities provided by the great era. The company aims to enhance its professional capabilities, improve work quality, deepen the development of a diversified community health service ecosystem, and strive to realize its vision of “people-oriented, high-quality service, customer satisfaction, valuing honor, striving for excellence, and achieving a century-old foundation for Jianzhijia.”