YSB announced the 2024 interim performance report today. During the reporting period, the company's revenue was 8.81 billion yuan, a year-on-year growth of 10.6%; net income turned positive for the first time from a significant loss, exceeding 13 million yuan; adjusted net income reached over 91 million yuan for the first time, a significant year-on-year growth of 30.3%; operating cash flow continued to remain positive inflow at 0.42 billion yuan, a year-on-year growth of 14.6%.

According to Mineweb data, in the first half of 2024, the retail scale of physical pharmacies in China decreased by 3.7% year-on-year. During the reporting period, YSB's revenue scale continued to maintain double-digit growth. In the first half of 2024, YSB's total GMV reached 23.83 billion yuan, a net increase of over 1.79 billion yuan year-on-year. While maintaining growth in scale, the company's profitability has also been steadily improving, achieving a positive net income and a year-on-year growth of 30.3% in adjusted net income.

In terms of user activity and stickiness, the company continues to maintain a growth trend. As of June this year, YSB has registered more than 0.741 million buying buyers, including approximately 0.426 million pharmacies, about 0.31 million grassroots medical institutions, registering user penetration in 98.6% of counties and 90.7% of townships nationwide; the average monthly active buyers reached 0.425 million, a year-on-year growth of 20.4%; the average monthly paying buyers reached 0.396 million, a year-on-year growth of 19.6%.

The announcement shows that in the first half of 2024, YSB continuously optimized its supply chain management and improved operational efficiency through refined operations. In the first half of the year, the company's accounts payable turnover days were approximately 60.6 days, accounts receivable turnover days were around 0.6 days, and the cash conversion cycle was about -28.9 days, achieving efficient inventory and cash management. In terms of platform efficiency, each BD in the first half of the year generated approximately 8.2 million yuan GMV, a year-on-year growth of 6.4%.

Furthermore, the company explored new profit growth points by adjusting its product strategy. In the first half of the year, GMV of exclusive strategic cooperation brands and self-owned brand 'Happy Pharmacist' products reached 0.22 billion yuan, a year-on-year growth of 94%.

Some institutions believe that due to policy adjustments and the impact of a high base, the pharmaceutical industry was in a weak recovery state in the first half of this year. With bearish factors gradually dissipating and the end of the adjustment period, the industry's growth rate for the whole year is expected to show a trend of starting low and then picking up, indicating significant potential in the competitive space. With economies of scale and digital advantages, YSB will further deepen its industry moat and is expected to gain a larger share of the market in the future.