Yifeng has another 12 pharmacies, a detail reveals that Hubei may have big moves

On the evening of October 12, Dahu shares, whose main business is agriculture, issued an announcement that its wholly-owned subsidiary Dehai Medical Trade and its wholly-owned grandson company Dehai Pharmacy and Yifeng Pharmacy (hereinafter referred to as "Yifeng") ) Signed the “Asset Acquisition Framework Agreement” to sell all 12 directly-operated pharmacies under the name of Dehai Pharmacy
.

 

It is understood that Dehai Pharmacies are mainly distributed in Changde City, Hunan Province, Li County and Taoyuan County, and Changde City is where Yifeng's registered address is located.
It can be seen that this fair will further improve the layout of Yifeng Base Camp
.

 

Not only that, the Hubei Food and Drug Administration’s response to Yifeng’s “Retail Chain Enterprises Cross-Administrative Area Mergers and Acquisitions of Other Retail Chain Enterprises Can Apply for the Issuance of Business Permits” has attracted the attention of the industry.
Does this mean that Yifeng will have a presence in Hubei? New action?

 

4.
5 million to accept 12 pharmacies

 

According to the announcement of Dahu Shares, the transfer price of this transaction was determined by tripartite negotiation to be 4 million yuan, excluding the property ownership of the store under the name of Dehai Pharmacy, land use rights and other buildings, monetary funds, inventory, prepaid accounts and other applications.
Collection
.
At the same time, Yifeng purchased the effective operating inventory of Dehai Pharmacy no more than 500,000 yuan
.

 

　　According to the announcement, the 12 directly-operated pharmacy stores under the name of Dehai Pharmacy have a total operating area of ​​approximately 1045.
5 square meters
.
The above-mentioned store’s net assets in 2020 will be 1.
645 million yuan, operating income will be 9.
8 million yuan, and net profit will be 47,000 yuan; the net assets for the first six months of 2021 will be 1.
55 million yuan, and operating income will be 3.
92 million yuan, unaudited The net profit is -93,000 yuan
.

 

　　From the perspective of financial data, Dehai Pharmacy's performance is not impressive, which is the main reason why it chooses to sell
.
When talking about the purpose of this transaction, the announcement stated that Dehai Pharmacy is under fierce market competition pressure in the same region and the impact of the new crown epidemic on physical stores.
The cost of acquiring new growth points is higher than its exit cost.
The benefits of continuing operations are not sufficient to meet the needs of the company's business development
.
The sale of relevant assets of Dehai Pharmacy is based on the company's arrangement to optimize resource allocation and revitalize its asset stock, which is conducive to the company's improvement of the company's operating conditions, reducing operating risks, further optimizing resource allocation, focusing on core businesses, and further accelerating the company's high quality Development
.

 

　　From the 2021 mid-year report of major listed chains, it can be seen that Hunan Province is the base camp of the two major listed chains of Yifeng and Lao People.
Yifeng’s revenue in Central and Southern China accounts for more than 40%.
It is located in Hunan, Hubei, Jiangsu, Anhui, Tianjin and other provinces and cities account for the top; the average population in central China will also account for close to 40% of revenue in 2020, and it will take the top share in Hunan and Hubei
.
Coupled with the strength of the local chain in Hunan and the fierce competition in the Hunan market, it can be said that Dehai Pharmacy chooses to withdraw
.

 

　　In addition, the announcement also mentioned that Dehai Medical Trade and Dehai Pharmacy promised that after the signing of this agreement, except for the business involved in the company’s asset disposal, Dehai Medical Trade and its affiliates will not be allowed to establish new businesses in Hunan Province within 20 years.
For the establishment of pharmaceutical retail stores, other commercial operations shall not be carried out on the original sites of the 12 directly-operated pharmacies involved in this agreement, nor shall any entity establish franchise stores
.

 

　　Will there be a new story in the Hubei market?

 

　　Judging from the data released by Yifeng, the central and southern regions including Hunan and Hubei are its important revenue regions, and a recent reply from the Hubei Provincial Food and Drug Administration is reminiscent
.

 

　　According to the news on the official website of Hubei Food and Drug Administration on October 11, Hubei Food and Drug Administration mentioned in its reply to Yifeng’s “Application for Retail Chain Enterprises to M&A Other Retail Chain Enterprises across Administrative Regions to Apply for the Issuance of Business Licenses”:

 

　　Judging from Yifeng's expansion plan in the next three years and the importance of the central and southern regions, does this mean that it will make new moves in the Hubei market?

 

　　At Yifeng's 2020 annual shareholders meeting, Gao Yi, chairman of Yifeng Pharmacy Chain Co.
, Ltd.
, stated that "the rate of opening stores in the future will be greater than or equal to 2,000 stores per year.
" According to the data, the net increase in stores in the first half of the year was 897.
among them, 569 new stores, 214 stores in mergers and acquisitions, new joining shop 164, closed 50
.
The central and southern regions, including Hubei, had the largest number of new stores, reaching 507
.

 

　　For a long time, the central and southern regions can be said to be one of its most important regions.
Relevant data shows that the number of Yifeng's stores in the central and southern regions was 559 in 2015 and increased to 2,858 by the end of 2020, an increase of 2,299 in five years
.

 

　　Therefore, whether it is from the data of past stores or the revenue contribution, it is understandable for Yifeng to further improve and strengthen the layout of the Hubei market
.
It is also expected that there will be new moves in capital operation .

 

　　Accelerate industry expansion

 

　　Store expansion is the core competitiveness of retail pharmacies .
At present, the concentration of the domestic pharmacy industry is in an increasing stage.
Companies with strong expansion capabilities mean that they can seize more market share in the future
.
At present, major listed chains and regional leaders are accelerating their expansion through self-construction, mergers and acquisitions, and franchising
.

 

　　According to the 2021 mid-year report of the four major privately-listed chains, from the perspective of the number of stores, the number of stores is Yixintang, which currently has more than 8,000 stores, which is not as close to the National University of China, followed by the common people, and in terms of growth rate, the common people are the most.
Fast
.
It can be seen that Yixintang and the common people have performed strongly in terms of store expansion speed.
They have ranked first in the southwest and central and southern regions respectively, and continue to promote the sinking of stores and develop towards the county and district levels.
Dashenlin and Yifeng Followed by
.

 

　　And store quality (ping effect) is an important indicator of store expansion
.
In this regard, Dashenlin's store floor efficiency is particularly prominent.
Its 2020 annual report and 2021 mid-year report show that Dashenlin’s store floor efficiency is 89.
5 yuan/square meter/day and 78.
8 yuan/square meter/day, respectively
.
Following behind are Lao People, Yifeng Pharmacy, and Yixintang
.

 

　　However, due to the decline in sales of anti-epidemic products in the first half of the year, the store efficiency of each company has declined to a certain extent.
Among them, Yifeng fell by 5%, which is more stable than other companies
.

 

　　It is foreseeable that Yifeng will further expand the market share of Zhongnan.
In addition to the fiercely competitive Guangdong, the two major regions of Hunan and Hubei may have new actions in the future
.

　　On the evening of October 12, Dahu shares, whose main business is agriculture, issued an announcement that its wholly-owned subsidiary Dehai Medical Trade and its wholly-owned grandson company Dehai Pharmacy and Yifeng Pharmacy (hereinafter referred to as "Yifeng") ) Signed the “Asset Acquisition Framework Agreement” to sell all 12 directly-operated pharmacies under the name of Dehai Pharmacy
.

 

　　It is understood that Dehai Pharmacies are mainly distributed in Changde City, Hunan Province, Li County and Taoyuan County, and Changde City is where Yifeng's registered address is located.
It can be seen that this fair will further improve the layout of Yifeng Base Camp
.

 

　　Not only that, the Hubei Food and Drug Administration’s response to Yifeng’s “Retail Chain Enterprises Cross-Administrative Area Mergers and Acquisitions of Other Retail Chain Enterprises Can Apply for the Issuance of Business Permits” has attracted the attention of the industry.
Does this mean that Yifeng will have a presence in Hubei? New action?

 

　　4.
5 million to accept 12 pharmacies

 

　　According to the announcement of Dahu Shares, the transfer price of this transaction was determined by tripartite negotiation to be 4 million yuan, excluding the property ownership of the store under the name of Dehai Pharmacy, land use rights and other buildings, monetary funds, inventory, prepaid accounts and other applications.
Collection
.
At the same time, Yifeng purchased the effective operating inventory of Dehai Pharmacy no more than 500,000 yuan
.

 

　　According to the announcement, the 12 directly-operated pharmacy stores under the name of Dehai Pharmacy have a total operating area of ​​approximately 1045.
5 square meters
.
The above-mentioned store’s net assets in 2020 will be 1.
645 million yuan, operating income will be 9.
8 million yuan, and net profit will be 47,000 yuan; the net assets for the first six months of 2021 will be 1.
55 million yuan, and operating income will be 3.
92 million yuan, unaudited The net profit is -93,000 yuan
.

 

　　From the perspective of financial data, Dehai Pharmacy's performance is not impressive, which is the main reason why it chooses to sell
.
When talking about the purpose of this transaction, the announcement stated that Dehai Pharmacy is under fierce market competition pressure in the same region and the impact of the new crown epidemic on physical stores.
The cost of acquiring new growth points is higher than its exit cost.
The benefits of continuing operations are not sufficient to meet the needs of the company's business development
.
The sale of relevant assets of Dehai Pharmacy is based on the company's arrangement to optimize resource allocation and revitalize its asset stock, which is conducive to the company's improvement of the company's operating conditions, reducing operating risks, further optimizing resource allocation, focusing on core businesses, and further accelerating the company's high quality Development
.

 

　　From the 2021 mid-year report of major listed chains, it can be seen that Hunan Province is the base camp of the two major listed chains of Yifeng and Lao People.
Yifeng’s revenue in Central and Southern China accounts for more than 40%.
It is located in Hunan, Hubei, Jiangsu, Anhui, Tianjin and other provinces and cities account for the top; the average population in central China will also account for close to 40% of revenue in 2020, and it will take the top share in Hunan and Hubei
.
Coupled with the strength of the local chain in Hunan and the fierce competition in the Hunan market, it can be said that Dehai Pharmacy chooses to withdraw
.

 

　　In addition, the announcement also mentioned that Dehai Medical Trade and Dehai Pharmacy promised that after the signing of this agreement, except for the business involved in the company’s asset disposal, Dehai Medical Trade and its affiliates will not be allowed to establish new businesses in Hunan Province within 20 years.
For the establishment of pharmaceutical retail stores, other commercial operations shall not be carried out on the original sites of the 12 directly-operated pharmacies involved in this agreement, nor shall any entity establish franchise stores
.

 

　　Will there be a new story in the Hubei market?

 

　　Judging from the data released by Yifeng, the central and southern regions including Hunan and Hubei are its important revenue regions, and a recent reply from the Hubei Provincial Food and Drug Administration is reminiscent
.

 

　　According to the news on the official website of Hubei Food and Drug Administration on October 11, Hubei Food and Drug Administration mentioned in its reply to Yifeng’s “Application for Retail Chain Enterprises to M&A Other Retail Chain Enterprises across Administrative Regions to Apply for the Issuance of Business Licenses”:

 

　　Judging from Yifeng's expansion plan in the next three years and the importance of the central and southern regions, does this mean that it will make new moves in the Hubei market?

 

　　At Yifeng's 2020 annual shareholders meeting, Gao Yi, chairman of Yifeng Pharmacy Chain Co.
, Ltd.
, stated that "the rate of opening stores in the future will be greater than or equal to 2,000 stores per year.
" According to the data, the net increase in stores in the first half of the year was 897.
among them, 569 new stores, 214 stores in mergers and acquisitions, new joining shop 164, closed 50
.
The central and southern regions, including Hubei, had the largest number of new stores, reaching 507
.

 

　　For a long time, the central and southern regions can be said to be one of its most important regions.
Relevant data shows that the number of Yifeng's stores in the central and southern regions was 559 in 2015 and increased to 2,858 by the end of 2020, an increase of 2,299 in five years
.

 

　　Therefore, whether it is from the data of past stores or the revenue contribution, it is understandable for Yifeng to further improve and strengthen the layout of the Hubei market
.
It is also expected that there will be new moves in capital operation .

 

　　Accelerate industry expansion

 

　　Store expansion is the core competitiveness of retail pharmacies .
At present, the concentration of the domestic pharmacy industry is in an increasing stage.
Companies with strong expansion capabilities mean that they can seize more market share in the future
.
At present, major listed chains and regional leaders are accelerating their expansion through self-construction, mergers and acquisitions, and franchising
.

 

　　According to the 2021 mid-year report of the four major privately-listed chains, from the perspective of the number of stores, the number of stores is Yixintang, which currently has more than 8,000 stores, which is not as close to the National University of China, followed by the common people, and in terms of growth rate, the common people are the most.
Fast
.
It can be seen that Yixintang and the common people have performed strongly in terms of store expansion speed.
They have ranked first in the southwest and central and southern regions respectively, and continue to promote the sinking of stores and develop towards the county and district levels.
Dashenlin and Yifeng Followed by
.

 

　　And store quality (ping effect) is an important indicator of store expansion
.
In this regard, Dashenlin's store floor efficiency is particularly prominent.
Its 2020 annual report and 2021 mid-year report show that Dashenlin’s store floor efficiency is 89.
5 yuan/square meter/day and 78.
8 yuan/square meter/day, respectively
.
Following behind are Lao People, Yifeng Pharmacy, and Yixintang
.

 

　　However, due to the decline in sales of anti-epidemic products in the first half of the year, the store efficiency of each company has declined to a certain extent.
Among them, Yifeng fell by 5%, which is more stable than other companies
.

 

　　It is foreseeable that Yifeng will further expand the market share of Zhongnan.
In addition to the fiercely competitive Guangdong, the two major regions of Hunan and Hubei may have new actions in the future
.