Laobaixing Pharmacy responds to SSE inquiry on 2024 financials

Laobaixing Pharmacy Chain JSC (SSE:603883) has responded to the Shanghai Stock Exchange's (SSE) inquiry regarding its 2024 annual report, addressing concerns about fluctuating performance and goodwill impairment. The company’s 2024 revenue decreased slightly to CNY223.58 billion, while net profit significantly declined by 44.13% to CNY5.19 billion. This occurred even as gross profit margin increased to 33.17%. In response, Laobaixing cited industry-wide pressures from evolving medical reforms, increased competition, and a strategic shift towards higher-margin products. The company’s initiatives to counter these pressures included supply chain optimization,自有品牌development, and enhanced procurement strategies.