Laobaixing pharmacy chain reports strong half-year performance

Laobaixing Pharmacy Chain held its 2025 half-year earnings briefing on September 29, 2025, addressing investor concerns and outlining strategic initiatives. The company reported a half-year revenue of 10.74 billion yuan and a net profit attributable to shareholders of 398 million yuan. Management reiterated its focus on diversifying products and services, particularly in "health ecology," and expanding into health food and daily necessities.

The company highlighted the accelerating trend of prescription outflow from hospitals, with retail pharmacies' share of the drug market growing to 30.8% in 2024 from 22.7% in 2014. Laobaixing has strengthened its capacity to handle prescription outflow, with 5,471 stores holding unified medical insurance qualification as of June 30, 2025, representing 42.32% of its direct-operated stores. The company's private brand sales reached 1.76 billion yuan, comprising approximately 23% of total sales, an increase of 1.5 percentage points year-on-year.

Laobaixing also noted the ongoing industry consolidation, with a continuous net decrease in the number of pharmacies nationwide since Q4 2024. The company aims to leverage this trend by strengthening its compliance and professional services, and expanding its "franchise" and "alliance" businesses to increase market share during this period of integration.