A pharmacy chain giant has spent huge sums of money to acquire 198 stores

A few days ago, Shuyu civilians announced that the company intends to acquire 100% of Qihe Taiyao held by Jilin Jingyao and Zhushan Leichi for no more than 288 million yuan, thereby indirectly holding 80% of the equity of Spring Pharmaceutical.
Spring Pharmaceutical will Holds the assets and business of 198 directly-operated stores injected by Spring Pharmacy
.
Public information shows that the 198 direct-operated stores that Spring Pharma intends to inject into Spring Pharmaceutical are located in the West Coast New District of Qingdao City.
Medical insurance stores account for more than 90%.
They have strong comprehensive competitiveness in the local pharmacy field, and their retail sales scale and brand influence are also in At the forefront of the industry
.
In addition, its overall business situation is healthy, its internal growth potential is large, the store layout is reasonable and strategic, and it also has professional regional expansion capabilities
.
Regarding this acquisition, Shuyu Civilian made it clear that after the completion of the acquisition, the company will continue to increase sales and gross profit margins through measures such as reducing the cost of product procurement, strengthening professional service levels, and increasing the proportion of sales; at the same time, the company will also use local The brand influence and marketing capabilities of the company further enhance the company’s market share
.
It is understood that the Shuyuping Minzhuying business is a pharmaceutical retail chain business.
The main business scope includes the operation and sales of Chinese and Western patent medicines, health foods, Chinese herbal medicines, health equipment and other products.
The main source of income is the sales of pharmaceutical products in directly-operated chain stores
.
At present, after years of development, it has become one of the leading enterprises in chain pharmacies in Shandong Province
.
According to statistics, as of June 30, 2021, the company's marketing network has covered 15 cities in Shandong Province, with a total of 2,149 directly-operated chain stores, of which 1,730 stores have designated medical insurance qualifications
.
In terms of performance, in the first half of this year, Shuyu Civilian also achieved operating income of 2.
479 billion yuan, a year-on-year increase of 10.
26%; net profit attributable to mothers was 86.
95 million yuan, a year-on-year increase of 22.
80%
.
In fact, in addition to Shuyu civilians, in the context of fierce competition in the industry, increasing market share through extensional mergers and acquisitions has become the development strategy of many A-share chain pharmacies
.
For example, on August 24, the common people also issued an announcement that they planned to acquire 51% equity of Hebei Huatuo Pharmacy Chain Co.
, Ltd.
with their own funds of 1.
428 billion yuan (including loans).

.
It is reported that Huatuo Pharmacy now has 715 stores located in Hebei Province, Shanxi Province, and Inner Mongolia Autonomous Region
.
In addition, in July, the common people's pharmacy also issued an announcement stating that it intends to further acquire minority stakes in three holding subsidiaries in Jiangsu for 210 million yuan in cash
.
Industry analysts believe that the accelerated expansion of large chains such as Shuyu Common People and Common People’s Pharmacy is actually a microcosm of the current development of the retail pharmacy industry
.
Benefiting from the spring breeze of the national medical reform policy, with the successive introduction of various national medical reform and health industry policies, the reform trend of "medicine separation" has become increasingly obvious.
Coupled with the advancement of prescription outflow policies, the size and share of China's retail terminal drug market are increasing.
Steadily improve
.
In this context, the industry predicts that in the future, a large number of chain giants in the drugstore industry will continue to "enclose the market" to continuously increase the chain rate and occupy the market
.