LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Stock Code: 603883 Company Abbreviation: LBX
LBX Pharmacy Chain Joint Stock Company
2025 Annual Report
(In case of any discrepancy between the Chinese and English versions of
this document the Chinese version shall prevail.)
1 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Important Notes
I. The Board of Directors the directors and officers of the Company warrant that the contents of
this Annual Report are true accurate and complete free from false records misleading statements
or major omissions and that they will bear several and joint liability.II. All directors of the Company attended the Board of Directors meetings.III. Ernst & Young Hua Ming LLP issued a standard unqualified auditor's report for the
Company.IV. Xie Zilong the Company's principal Chen Lishan person in charge of
accounting work and Shi Lei the person in charge of accounting department (chief accountant)
declare as follows: We warrant the truthfulness accuracy and completeness of the financial report
in this Annual Report.V. Profit distribution plan or plan for capitalization of capital reserves for the reporting period
approved by the resolution of the Board of Directors
As approved at the 14th meeting of the fifth Board of Directors upon deliberation on
April 22 2026 the Company intends to distribute cash dividends of RMB 0.27 (tax-
inclusive) for every 10 shares to all shareholders based on the total share capital on the record
date for equity distribution. The Company will not issue bonus shares or convert capital
reserve into its share capital. As of March 31 2026 the total share capital of the Company is
758890236 shares and the Company intends to distribute cash dividends of RMB
204900364 (tax-inclusive). The total amount of cash dividends proposed by the Company
in 2025 (including tax) was RMB 311144997(including interim dividends of RMB
106244633 in 2025) accounting for 81.48% of the net profit attributable to the parent
company in 2025. The profit distribution proposal was submitted to the 2025 annual
shareholders' meeting of the Company for deliberation.Information on the Parent Company's Unrecovered Losses and Their Impacts on the Company's
Dividend Distribution and Other Matters as of the End of the Reporting Period
□Applicable "√Not Applicable"
VI. Risk statement regarding forward-looking statements
√Applicable □Not Applicable
The forward-looking statements involved in this Report including future plans and
development strategies do not constitute substantial commitments by the Company to
investors. Please pay attention to investment risks.VII. Whether there is any non-operational occupation of funds by the controlling shareholder and
other related parties
No
2 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
VIII. Whether there was any external guarantee in violation of the established decision-making
procedures
No
IX. Whether a majority of directors cannot guarantee the authenticity accuracy and
completeness of the Annual Report disclosed by the Company
No
X. Major risk warning
During the reporting period there were no major risks that had a substantial impact on the
Company's production and operation. The Company has elaborated in detail in this Report
on the various risks it may face during its production and operation as well as the
corresponding countermeasures. Please refer to Section III "Discussion and Analysis by the
Management" Part VI "Company's Discussion and Analysis of Future Development - (IV)
Potential Risks".XI. Others
□Applicable √Not Applicable
3 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Contents
Section I Interpretation ............................ 5
Section II Company Profile and Key Financial Indic... 9
Section III Discussion and Analysis by the Managem.. 15
Section IV Corporate Governance Environmental and .. 59
Section V Important Notes .......................... 94
Section VI Changes in Shareholding and Shareholder. 119
Section VII Information on Bonds .................. 129
Section VIII Financial Reports .................... 130
Financial statements bearing the signatures and seals of the legal
representative the person in charge of accounting work and the
person in charge of accounting department
Contents of Original of the Audit Report stamped by the accounting firm
Documents Available signed and stamped by certified public accountants
for Reference Originals of all the Company's documents and announcements that
have been publicly disclosed on the newspapers designated by
China Securities Regulatory Commission during the reporting
period
4 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Section I Interpretation
I. Interpretation
Unless otherwise specified the following terms in this Report are defined as follows:
Interpretation of Common Terms
LBX/Company/Grou
Refers to LBX Pharmacy Chain Joint Stock Company
p
LBX Pharmaceutical
LBX Pharmaceutical Group Co. Ltd. LBX's
Group/Pharmaceutic Refers to
controlling shareholder
al Group
Janstar Investment Refers to Janstar Investment Limited LBX's major shareholder
LBX Pharmacy Chain (Gansu) Co. Ltd. LBX's
Lanzhou Huirentang Refers to
wholly-owned subsidiary
Shaanxi
LBX Pharmacy Chain (Shaanxi) Co. Ltd. LBX's
LBX/Shaanxi Refers to
wholly-owned subsidiary
Company
LBX Pharmacy Chain (Zhejiang) Co. Ltd. LBX's
Zhejiang LBX Refers to
wholly-owned subsidiary
Guangxi
LBX Pharmacy Chain (Guangxi) Co. Ltd. LBX's
LBX/Guangxi Refers to
wholly-owned subsidiary
Company
Shandong
LBX Pharmacy Chain (Shandong) Co. Ltd. LBX's
LBX/Shandong Refers to
wholly-owned subsidiary
Company
Guangdong
LBX Pharmacy Chain Guangdong Co. Ltd. LBX's
LBX/Guangdong Refers to
wholly-owned subsidiary
Company
Tianjin LBX/Tianjin LBX Pharmacy Chain (Tianjin) Co. Ltd. LBX's
Refers to
Company wholly-owned subsidiary
LBX Pharmacy (Jiangxi) Co. Ltd. LBX's wholly-
Jiangxi LBX Refers to
owned subsidiary
LBX Pharmacy Chain (Shanghai) Co. Ltd. LBX's
Shanghai LBX Refers to
wholly-owned subsidiary
LBX Pharmacy Chain (Hubei) Co. Ltd. LBX's
Hubei LBX Refers to
wholly-owned subsidiary
Shanxi Baihui Pharmaceutical Chain Co. Ltd. LBX's
Shanxi Baihui Refers to
non-wholly-owned subsidiary
Hunan LBX Huairen Pharmacy Chain Co. Ltd.Hunan
(formerly "Hunan Huairen Great Health Industry
Huairen/Huairen Refers to
Development Co. Ltd.") LBX's wholly-owned
Pharmacy
subsidiary
LBX Pharmacy Chain Henan Co. Ltd. LBX's wholly-
Henan LBX Refers to
owned subsidiary
Forworld
Forworld Medicine Logistics (Hunan) Co. Ltd.Company/Hunan Refers to
LBX's wholly-owned subsidiary
Forworld
Forworld Medicine Technology (Jiangsu) Co. Ltd.Jiangsu Forworld Refers to
LBX's wholly-owned subsidiary
Tianjin Forworld Refers to Forworld Pharmaceutical (Tianjin) Co. Ltd. Hunan
5 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Forworld's wholly-owned subsidiary
LBX Pharmacy (Jiangsu) Co. Ltd. Changzhou
Jiangsu LBX Refers to
Wanren's wholly-owned subsidiary
Yaoshengtang
Technology/Chinese Hunan Yaoshengtang Chinese Medicine Technology
Refers to
Medicine Co. Ltd. LBX's wholly-owned subsidiary
Technology
LBX Pharmacy Chain (Hengyang) Co. Ltd. LBX's
Hengyang LBX Refers to
non-wholly-owned subsidiary
Forworld Medicine Logistics (Hangzhou) Co. Ltd.Hangzhou Forworld Refers to
Zhejiang LBX's wholly-owned subsidiary
Beijing LBX E-commerce Co. Ltd. LBX's wholly-
Beijing E-commerce Refers to
owned subsidiary
LBX Pharmacy Chain (Anhui) Co. Ltd. LBX's
Anhui Baixingyuan Refers to
wholly-owned subsidiary
Xi'an Longsheng Pharmaceutical Co. Ltd. Shaanxi
Xi'an Longsheng Refers to
LBX's wholly-owned subsidiary
Xi'an Changjia Pharmaceutical Co. Ltd. Shaanxi
Xi'an Changjia Refers to
LBX's wholly-owned subsidiary
Henan
Henan Provincial Pharmaceutical Supermarket Co.Pharmaceutical Refers to
Ltd. Henan LBX's wholly-owned subsidiary
Supermarket
Yangzhou LBX Pharmacy Chain (Yangzhou) Co. Ltd. LBX's
Refers to
Baixinyuan wholly-owned subsidiary
Hunan Mingyuan Bee Industry Co. Ltd. whose
Mingyuan Bee controlling shareholder is Tianyi Venture Capital Co.Refers to
Industry Ltd. and actual controllers are Mr. Xie Zilong and Ms.Chen Xiulan.LBX Pharmacy Chain (Tianjin Binhai New Area) Co.Tianjin Binhai LBX Refers to
Ltd. Tianjin LBX's non-wholly-owned subsidiary
Wugong County Longsheng Pharmaceutical Co. Ltd.Wugong Longsheng Refers to
Xi'an Longsheng's wholly-owned subsidiary
LBX Health LBX Health Pharmacy Group Chain Co. Ltd.Refers to
Pharmacy Forworld's non-wholly-owned subsidiary
Hunan Baixingtang Famous Doctors' Clinic
Baixingtang Refers to Traditional Chinese Medicine Management Co. Ltd.LBX's non-wholly-owned subsidiary
Hunan Baixingtang Famous Doctors' Clinic
Hunan Baixingtang Refers to Traditional Chinese Medicine Outpatient Department
Co. Ltd. Baixingtang's wholly-owned subsidiary
Chengdu Chengdu Baixingtang Medical Center Management
Refers to
Baixingtang Co. Ltd. Baixingtang's wholly-owned subsidiary
Hunan Mingyu Longxing Pharmaceutical Sales Co.Mingyu Longxing Refers to
Ltd. LBX's non-wholly-owned subsidiary
Xi'an Baixingtang Zhang Shiwu Tang Traditional
Xi'an Baixingtang Refers to Chinese Medicine Clinic Co. Ltd. LBX (Shaanxi)'s
wholly-owned subsidiary
Changzhou Renmin Changzhou Baixingtang Renmin Traditional Chinese
Refers to
Baixingtang Medicine Outpatient Department Co. Ltd.
6 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Baixingtang's wholly-owned subsidiary
Changzhou Baixingtang Heping Medical Outpatient
Changzhou Heping
Refers to Department Co. Ltd. Baixingtang's wholly-owned
Baixingtang
subsidiary
LBX Health Pharmacy (Zhejiang) Co. Ltd. LBX
Zhejiang Health Refers to
Health Pharmacy's non-wholly-owned subsidiary
Hangzhou Zhongbeiqiao Clinic Co. Ltd. Zhejiang
Zhongbeiqiao Refers to
LBX's wholly-owned subsidiary
Kunshan Duhao Convenience Chain Co. Ltd. Jiangsu
Kunshan Duhao Refers to
Baijiahui's wholly-owned subsidiary
Jiangsu Baijiahui Suhe Pharmacy Chain Co. Ltd.Jiangsu Baijiahui Refers to
LBX's wholly-owned subsidiary
Tongliao Zeqiang Pharmacy Chain Co. Ltd. LBX's
Tongliao Zeqiang Refers to
non-wholly-owned subsidiary
Inner Mongolia Inner Mongolia Zeqiang Pharmaceutical Co. Ltd.Refers to
Zeqiang Tongliao Zeqiang's wholly-owned subsidiary
Chifeng LBX Pharmacy Chain Co. Ltd. LBX's
Chifeng LBX Refers to
wholly-owned subsidiary
LBX Pharmacy Chain (Taizhou) Co. Ltd. LBX's
Longtaiyuan Refers to
wholly-owned subsidiary
LBX Pharmacy Chain (Zhenjiang) Co. Ltd. LBX's
Zhenjiang Huakang Refers to
wholly-owned subsidiary
Nantong Puze Pharmacy Chain Co. Ltd. LBX's non-
Nantong Puze Refers to
wholly-owned subsidiary
Anhui Linjiayi Kangfu Pharmacy Chain Co. Ltd.Anhui Linjiayi Refers to
LBX's non-wholly-owned subsidiary
Hunan LBX Easy Drug Technology Co. Ltd. LBX's
Easy Drug Refers to
non-wholly-owned subsidiary
Changzhou Jintan Xinqianqiu Pharmacy Co. Ltd.Jintan Xinqianqiu Refers to
LBX's non-wholly-owned subsidiary
Wuxi Sanpintan Pharmaceutical Chain Co. Ltd.Sanpintan Refers to
LBX's non-wholly-owned subsidiary
Jiangsu Haipeng Pharmaceutical Chain Co. Ltd.Jiangsu Haipeng Refers to
LBX's non-wholly-owned subsidiary
Ningxia LBX Huirentang Pharmaceutical Co. Ltd.Ningxia Huirengtang Refers to
Lanzhou Huirentang's wholly-owned subsidiary
Linyi Rende Pharmacy Chain Co. Ltd. LBX's non-
Rende Pharmacy Refers to
wholly-owned subsidiary
Hunan Longxing Tianxia Health Management Co.Longxing Tianxia Refers to Ltd. LBX Health Pharmacy's wholly-owned
subsidiary
Changsha Faxiangdi Industrial Co. Ltd. LBX's
Faxiangdi Refers to
wholly-owned subsidiary
Ordinary shares approved for listing on domestic stock
A-share Refers to exchanges denominated in RMB subscribed for and
traded in RMB
CSRC Refers to China Securities Regulatory Commission
SSE (Shanghai Stock
Refers to Shanghai Stock Exchange
Exchange)
7 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Articles of Refers to LBX's past and currently effective Articles of
Association Association
State Council Refers to The State Council of the People's Republic of China
also known as the Central People's Government is the
executive body of the highest organ of state power and
the highest state administrative organ
Ministry of Refers to Ministry of Commerce of the People's Republic of
Commerce China
Abbreviation for Online-to-Offline referring to an e-
commerce model that combines offline business
O2O Refers to
opportunities with the internet making the internet a
front-end for offline transactions
Business-to-Customer an e-commerce model where
B2C Refers to businesses sell products and services directly to
consumers
DTP is an abbreviation of Direct-to-Patient. DTP
pharmacies are pharmacies that provide more valuable
professional services directly to patients. After a
patient receives a prescription from a hospital the
DTP Refers to pharmacy delivers the medicine door to door at the
time and place designated by the patient or his family
according to the prescription cares for and tracks the
patient's medication progress and provides
professional services such as medication consultation.LBX Pharmacy Chain Joint Stock Company2025
This Report Refers to
Annual Report
Reporting period Refers to January 1 - December 31 2025
End of the reporting
Refers to December 31 2025
period
RMB RMB'0000
Refers to RMB RMB'0000 RMB'00 million
RMB'00 million
8 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Section II Company Profile and Key Financial Indicators
I. Company Information
Chinese Name of the Company LBX Pharmacy Chain Joint Stock Company
Chinese Abbreviation of the Company LBX
English Name of the Company LBX Pharmacy Chain Joint Stock Company
English Abbreviation of the Company LBX
Legal Representative of the Company Xie Zilong
II. Contact Person and Contact Information
Secretary of the Board of Directors Securities affairs representative
Full name Feng Shini Liu Xia'er
No. 808 Qingzhu Lake Road Kaifu No. 808 Qingzhu Lake Road
Contact address District Changsha City Hunan Kaifu District Changsha
Province City Hunan Province
Tel. 0731-84035189 0731-84035189
Fax 0731-84035196 0731-84035196
Email ir@lbxdrugs.com ir@lbxdrugs.com
III. Basic Information Summary
No. 808 Qingzhu Lake Road Kaifu District
Company's registered address
Changsha City Hunan Province
In April 2019 the registered address changed from
Change history of the Company's
No. 288 Xiangya Road Changsha City to No. 808
registered address
Qingzhuhu Road Kaifu District Changsha City
No. 808 Qingzhu Lake Road Kaifu District
Office address of the Company
Changsha City Hunan Province
Postal code of the Company's office 410152
address
Company website www.lbxdrugs.com
Email ir@lbxdrugs.com
IV. Information disclosure and document location
China Securities Journal
(https://www.cs.com.cn) / Shanghai Securities
Media name and website for the
News (https://www.cnstock.com) / Securities
Company's annual report disclosure
Times (http://www.stcn.com) / Securities Daily
(http://www.zqrb.cn)
Website of the stock exchange for the
www.sse.com.cn
Company's annual report disclosure
Location where the Company's Annual
Company's Securities Affairs Department
Report is kept
9 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
V. Company Stock Profile
Company Stock Profile
Stock
Stock Listing Stock
Stock Type Stock Code abbreviation
Exchange Abbreviation
before change
Shanghai Stock
A-share LBX 603883 None
Exchange
VI. Other Relevant Information
Name Ernst & Young Hua Ming LLP
Rooms 01-12 17th Floor Ernst & Young
Office Address Tower Oriental Plaza 1 East Chang'an
Accounting firm engaged
Avenue Dongcheng District Beijing
by the Company (within the
Names of
territory of China)
signatory
Wang Shijie Liang Chang'e
certified public
accountants
Goldman Sachs (China) Securities
Name
Company Limited
Rooms 1807-1819 18th Floor Beijing
Office Address Yinglan International Financial Center 7
Sponsor institution Jincheng Street Xicheng District Beijing
performing continuous Names of
supervision duties during signing sponsor Huang Yunqi Liu Yang
the reporting period representatives
August 06 2020 - December 31 2023 (As
Period of
raised funds were not fully utilized
continuous
continuous supervision duties for the
supervision
raised funds continued in 2025)
VII. Major Accounting Data and Financial Indicators in the Past Three Years
(i) Main accounting data
Unit: RMB Currency: RMB
Year-on-year
Main accounting data 2025 2024 2023
change (%)
Operating income 22236615347 22357610195 -0.54 22437489012
Total profit 756168890 915971484 -17.45 1407833099
Net profits attributable to shareholders of
381846593519063405-26.44929023131
the listed company
Net profits attributable to shareholders of
the listed company net of non-recurring 346630483 496274418 -30.15 843765222
profit and loss
Net cash flows from operating activities 3142633749 2026458797 55.08 2729838947
Year-end
End of 2025 End of 2024 End of 2023
comparison (%)
Net assets attributable to shareholders of
65353919856580857270-0.696701235576
the listed company
Total assets 19845403504 21044853679 -5.70 21230999976
10 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Note: The profit attributable to shareholders of the listed company net of the impact of
goodwill and land impairment was RMB 620 million representing a year-on-year decrease
of 1.0% as compared with 2024.(ii) Main financial indicators
Year-on-year
Main financial indicators 2025 2024 2023
change (%)
Basic EPS (RMB/share) 0.50 0.68 -26.47 1.23
Diluted EPS (RMB/share) 0.50 0.68 -26.47 1.23
Basic EPS net of non-recurring profit or
0.460.65-29.231.11
loss (RMB/share)
Decrease by 2.18
Weighted average return on equity (%) 5.66 7.84 13.91
percentage points
Weighted average return on equity net Decrease by 1.99
5.617.6012.64
of non-recurring profit or loss (%) percentage points
Notes to the main accounting data and the financial indicators of the Company for the past
three years at the end of the reporting period
√Applicable □Not Applicable
During the reporting period the operating income decreased by 0.54% as compared with the
previous year which was basically the same as that of the previous year. The net profit
attributable to shareholders of the listed company and the profit attributable to shareholders
of the listed company net of non-recurring gains and losses declined by 26.44% and 30.15%
respectively as compared with the previous year mainly due to the Company’s goodwill and
land impairment provision. Net cash flows from operating activities increased by 55.08% as
compared with the previous year mainly owing to the decrease in operating receivables and
the increase in operating payables in the current period. Net assets attributable to shareholders
of listed companies decreased by 0.69% as compared with the previous year which was
basically the same as that of the previous year. Total assets decreased by 5.70% as compared
with the previous year mainly due to the provision for impairment losses and amortization
of right-of-use assets.VIII. Differences in Accounting Data under Domestic and Overseas Accounting Standards
(i) The difference between the net profits and net assets attributable to shareholders of the listed
company in the financial report disclosed in accordance with both the international accounting
standards and the Chinese accounting standards
□Applicable √Not Applicable
(ii) The difference between the net profits and net assets attributable to shareholders of the listed
company in the financial report disclosed in accordance with both overseas accounting
standards and Chinese accounting standards
□Applicable √Not Applicable
(iii) Explanation for differences between domestic and overseas accounting standards:
□Applicable √Not Applicable
11 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
IX. Main financial data by quarter in 2025
Unit: RMB Currency: RMB
Q3 Q4
Q1 Q2
(July- (October-
(January-March) (April-June)
September) December)
Operating income 5435220089 5339092426 5296154500 6166148332
Net profits attributable to
shareholders of the listed 250636310 147227583 130783352 -146800652
company
Net profits attributable to
shareholders of the listed
243498304137623386113349086-147840293
company net of non-
recurring profit or loss
Net cash flows from
804266875821778294530772555985816025
operating activities
Explanation for differences between quarterly data and disclosed periodic report data
□Applicable √Not Applicable
X. Non-recurring profit or loss items and amounts
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount of Notes (if Amount of Amount for
Non-recurring profit or loss item
2025 applicable) 2024 2023
Gains or losses from the disposal of non-
current assets including the reversal of
-3542326-45302585509528
any previously provided for asset
impairment
Government grants recognized in the
current profit or loss except for
government grants that are closely
related to the Company's normal
business operations comply with 26407173 31143302 36990610
national policy provisions are enjoyed
according to established standards and
have continuous impacts on the
Company's profit or loss
Except for effective hedging transactions
related to the Company's normal
business operations the gains or losses
from changes in the fair value of
496624112064964629589
financial assets and liabilities held by
non-financial enterprises as well as
gains or losses from the disposal of
financial assets and liabilities
Fund possession costs that are recorded
in current profit or loss and are charged
from the non-financial enterprises
Profit or loss from entrusting others to
make investment or management of
assets
Profit or loss from obtaining of entrusted
loans
Various asset losses caused by force
12 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
majeure factors such as natural disasters
Reversal of impairment provision for
accounts receivable subject to individual 70000 253000 790786
impairment test
Profits from deficiency of the investment
costs for acquisition of the subsidiaries
associates and joint ventures below the
fair value of the net identifiable assets
received from the investee at the time of
investment
Current net profit or loss of subsidiaries
generated from business combinations
involving enterprises under common
control from the beginning of the period
to the date of consolidation
Profit or loss from exchange of non-
monetary assets
Profit or loss from debt restructuring
One-time expenses incurred by the
enterprise due to the discontinuation of
related business activities such as
expenditures for the resettlement of
employees
One-time impact on the current profit or
loss due to adjustments in tax
accounting and other laws and
regulations
One-time share-based payment expenses
recognized due to the cancellation or
modification of equity incentive plans
For cash-settled share-based payments
the gains or losses generated by changes
in the fair value of employee
compensation payable after the exercise
date
Profit or loss from change in fair value
of investment property that is
subsequently measured at fair value
Profits generated from transactions that
are obviously unfair in terms of
transaction price
Profit or loss from contingencies that are
irrelevant to the normal operation
business of the Company
Trustee fee income from entrusted
operation
Other non-operating income and
expenses other than the items listed 14312936 2398621 9703510
above
Other profit or loss items that conform to
the definition of non-recurring profit or -1309915 56265472
loss
Less: impact of income tax 3461353 4978234 25236570
Influence of minority equity (after-
353656113940253395016
tax)
Total 35216110 22788987 85257909
13 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
The non-presented items defined as non-recurring profit or loss items at significant amount by the
Company according to the Explanatory Announcement No. 1 on Information Disclosure of Companies
Issuing Securities to the Public - Non-recurring Profit or Loss as well as he non-recurring profit or loss
items listed in Explanatory Announcement No. 1 on Information Disclosure of Companies Issuing
Securities to the Public - Non-recurring Profit or Loss shall be accounted for.√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Amount involved Reason
Closely related to
VAT reduction/exemption for small-
51123215 normal business
scale taxpayers
operations
XI. Companies with equity incentives and employee stock ownership plans may choose to disclose
their profits after net of the impacts of share-based payments
□Applicable √Not Applicable
XII. Items measured at fair value
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Changes during Impact on current
Name of project Opening balance Closing balance
the period profit
Accounts receivable
152692885612871-9656417
financing
Other equity
instrument 35877723 35768123 -109600
investments
Other non-current
120931506963496-5129654455891
financial assets
Total 63240161 48344490 -14895671 455891
XIII. Others
□Applicable √Not Applicable
14 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Section III Discussion and Analysis by the Management
I.Business Activities during the reporting period
(I) Overview of Main Business
LBX Pharmacy is one of the leading pharmaceutical retail chain enterprises in China in
terms of scale. It is mainly engaged in the sale of drugs and other health and beauty-related
products through its marketing network. Its operating categories include Chinese and
Western patent medicines Chinese herbal medicines health-preserving Chinese medicines
health equipment health foods ordinary foods personal care products and daily necessities.In addition to the retail of pharmaceuticals the Company is also engaged in the wholesale
and manufacturing of pharmaceuticals (mainly the manufacturing of ready-for-use traditional
Chinese medicine and Chinese medicine decoction pieces).While committed to the direct operation and management mode LBX Pharmacy
actively explores the "Spark Company" cooperation model of controlling acquisitions
vigorously develops the "Seven-Unification" high-standard pharmacy franchise model
innovatively creates the alliance model of a "third-party comprehensive empowerment
service platform" DTP professional pharmacy Chinese medicine clinic chain and other
formats and actively explores O2O business strives to become a technology-driven health
service platform creating an innovation platform led by retail coordinated by services and
continuously expanding into new retail prescription drugs and other fields.(II) Business Model
The Company's main business process is shown in the figure below:
1. Procurement Model
15 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
The Company's procurement process mainly includes several important steps: budget
formulation detailed plan refinement supplier selection product review and supplier
management. Through the coordinated cooperation of managers for each category in the
procurement line with the product management department and quality management
department high-quality products efficient procurement and process integrity are ensured.
2. Logistics Distribution Model
The Company's logistics and distribution system mainly includes three processes:
warehouse management order management and transportation management. The Company
utilizes advanced information systems such as WMS (Warehouse Management System)
WCS (Warehouse Control System) AS/RS (Automated Storage and Retrieval System) DPS
(Digital Picking System) MCS (Material Control System) CRM (Customer Relationship
Management System) and ERP (Enterprise Resource Planning) to achieve automated store
replenishment requests nationwide. It has also introduced advanced intelligent equipment
such as AS/RS automated warehouses AGV (Automated Guided Vehicle) goods-to-person
picking electronic tag picking RF picking and unmanned transport vehicles achieving full
intelligence in the entry and exit of goods in logistics distribution centers. Through
informatization and visualization management TMS (Transportation Management System)
order allocation vehicle scheduling freight settlement etc. the timeliness of logistics
distribution is effectively improved and the distribution error rate is reduced making it a
core competitiveness of the enterprise.
3. Sales Model
The Company's sales model includes self-operated purchase and sale franchising and
alliance models. That is the logistics distribution center uniformly purchases goods and
distributes them uniformly. After the purchased goods are accepted and enter the stores they
become the inventory of the retail pharmacy and the risks and rewards related to the
ownership of the goods are borne by the retail pharmacy. Under the self-operated purchase
16 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
and sale model the purchase-sale price difference is the main source of profit. The main
profit sources for franchising are distribution purchase-sale price difference franchise fees
management fees and software usage fees. The main profit sources for the alliance are
distribution purchase-sale price difference and consulting fees. The Company relies on
directly-operated stores franchised stores and alliance stores to conduct pharmaceutical
retail business. To provide consumers with high-quality goods and professional services the
Company has formulated a series of operating specifications to manage store sales. In
addition the Company develops online business through multiple channels such as major e-
commerce platforms and private domain WeChat mini-programs.
4. Profit Model
Currently the Company's main business is the retail chain business of drugs and health-
related products and the main profit comes from the purchase-sale price difference.Notes on the Company's Additional Important Non-primary Business during the Reporting
Period
□Applicable √Not Applicable
II.Industry Situation during the Reporting Period
(I) Basic Industry Situation
1. Policies drive high-quality development of the industry and improve the social status
of retail pharmacies
In January 2026 nine ministries including the Ministry of Commerce issued the
Opinions on Promoting the High-Quality Development of the Pharmaceutical Retail
Industry" (hereinafter referred to as the "Opinions") pointing out that the pharmaceutical
retail industry is an important part of national medical and health undertakings and is related
to people's health and life safety. The Opinions highly recognize the important position of
retail pharmacies in the national health cause. They are conducive to the standardized
healthy and sustainable development of the pharmaceutical retail industry. They also re-
estimate the commercial and social value of retail pharmacies. In particular they have
constituted substantial and structural long-term benefits for industry leaders.Specifically their value for long-term growth of the industry is reflected from the
following six aspects: Firstly optimize the policies for external prescriptions and remote
prescription review which is favorable for retail pharmacies to obtain external and remote
reviewed prescriptions. Enterprises may directly use prescription circulation platforms
encourage self-built remote prescription review platforms and further promote the outflow
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of prescriptions. Secondly clarify the positioning of retail pharmacies' social public service
functions encourage pharmacies to participate in social functions such as health stations
emergency supply guarantee and real-world scientific research and enjoy the same rights as
primary medical institutions to improve the social status of retail pharmacies. Thirdly enrich
the business scope of retail pharmacies in combination with the construction of a quarter-
hour convenient life circle encourage pharmacies to expand their businesses such as patient
education health consultation traditional Chinese medicine culture care and commercial
insurance so as to meet customers' diversified health needs and improve customer stickiness.Fourthly confirm the market orientation and strengthen fair supervision; confirm market
orientations of drug prices strengthen the supervision over online platforms and ease the
inspection burden of enterprises with good credit to further protect the interests of offline
pharmacies. Fifthly enhance the market positions of leading enterprises optimize the post-
M&A medical insurance qualification inheritance policy encourage industry integration and
enhance the bargaining power of leading pharmacies. Sixthly optimize the settlement
methods between medical insurance funds and retail pharmacies effectively shorten the
settlement time improve the settlement efficiency and benefit the cash flow of retail
pharmacies.With the continuous optimization of the policy environment and stricter supervision for
maintaining the order of fair market competitions the pharmaceutical retail industry will
accelerate its high-quality development for becoming specialized intensive digitalized and
standardized. Leading offline pharmacies have steadily promoted the transformation of their
"health stations" relied on offline scenarios to build competitive barriers direct to consumers
expanded diversified health services and effectively given play to their social and public
functions. With steady improvement of its concentration and constant increase in its chain
rate the pharmaceutical retail industry has maintained a favorable development pattern in a
long term.
2. Population aging intensified and residents' health awareness increased
According to the data from the National Bureau of Statistics as at the end of 2025
China's population aged 60 and above was 323 million accounting for 23% of the national
population with an increase of 1% compared with 2024. Among them 224 million people
aged 65 and above accounting for 15.9% of the national population with an increase of 0.3%
compared with 2024. According to the calculations of the National Health Commission it is
estimated that around 2035 the population of the elderly aged 60 and above would exceed
18 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
400 million accounting for more than 30% of the total population entering a stage of severe
aging. China's aging degree continues to be deepened and the demand for healthcare and
chronic disease management will gradually rise in the future.Data source: National Bureau of Statistics
As residents' health awareness continues to increase pharmacies as important scenarios
in the field of residents' health have a definite long-term demand for medical and health
services. According to the data of the National Bureau of Statistics in 2025 nationwide
residents' per capita medicare spending was RMB 2573 with an increase of 1.0%
accounting for 8.7% of the per capita consumption expenditure.Data source: National Bureau of Statistics
19 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
According to CMH data in 2025 the overall sales scale of the retail pharmacy market
amounted to RMB 517.3 billion (all categories of pharmacies including drugs and non-
drugs) with a year-on-year decline of 2.2%. Since 2023 the market size of physical
pharmacies maintained slight decline mainly affected by the reform of personal medical
insurance accounts outpatient mutual assistance compliance supervision and drug price
governance.
3. Clearing WAS accelerated and the strong remained strong. Intense supervision drove
industry integration.
(1) Pharmacy clearing was accelerated. The scale and concentration of the industry were
improved.Affected by multiple factors such as tightening supervision and intensifying industry
competitions the clearing process of retail pharmacies nationwide was significantly
accelerated in 2025. According to data from CMH since the number of retail pharmacies
nationwide reached an inflection point in 2024 Q4 22000 pharmacies nationwide had been
cleared by the end of 2025 and pharmacies had turned from quantitative increase to quality
improvement. The net decrease in the number of pharmacies in each quarter of 2025 was
3166 4009 8800 and 5950 respectively and the clearing of the industry was accelerated.
From the perspective of pharmacy clearing structure small and medium-sized chains
and single pharmacies with insufficient compliance capabilities and lower level of
specialization are under pressure and are being cleared one after another. Among the nearly
20000 stores decreased on a net basis in 2025 Q3 as compared with 2024 Q4 small and
medium-sized chains (chain pharmacies outside the top 30) and single pharmacies had
accounted for 84.5%.According to the forecast of CMH data the number of pharmacies is expected to drop
below 500000 in the next 3 to 5 years. With the accelerated integration and clearing of
pharmacies the number of served customers per store in the industry is expected to rebound.This will facilitate the increase in the top chain pharmacies' market shares and growth of their
customer flow.
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Data source: CMH
According to data from China Drug Store and CITIC Securities the industry's chain
operation rate slightly dropped to 57.56% in 2024. The market shares of the Top 10 and Top
100 continued to increase. Large chain pharmacies steadily expanded in reliance upon their
scale and brand advantages while small and medium-sized chain pharmacies bore pressure
from competitions and in the industry the strong tended to remain strong. In 2024 the sales
of the Top 10 chain pharmacies increased by 1.74% compared with 2023. The sales of Top
100 pharmacy chains accounted for 59.71% of the industry's total sales with an increase of
1.57% from 2023. According to data from Soochow Securities and China Drug Store in 2022
the market share of the Top 3 pharmacies in the United States was 85%; The market share of
the Top 10 pharmacies in Japan was 73.7% and the market share of the Top 10 pharmacies
China in 2024 was only 33.37%. There is huge room for improvement in concentration.
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Data source: China Drug Store
(2) Regulatory compliance tends to be tightened and medical insurance qualifications
are particularly owned by the top pharmacies.In recent years the supervision at all levels has been gradually upgraded in China and
the compliance of the pharmaceutical retail industry has been improving. Firstly the
supervision of medical insurance prices has become more rigorous. The price comparison
action has been implemented nationwide and the market prices have become more
transparent. Industry leaders are expected to further give full play to their cost advantages.Secondly unannounced inspections are normalized and large chain pharmacies that are
conducive to compliance operations give priority to undertaking outgoing prescriptions.Thirdly traceability codes are fully launched and technological advancement has accelerated
the progress of industry compliance. Large chain pharmacies may further increase their
market share in the process of regulatory clearance with the advantages of digitally
empowered compliance management.The nine ministries including the Ministry of Commerce has pointed out in the
Opinions jointly issued by them that the intelligent supervision model of "technology
empowerment + risk classification" shall be explored and that the dynamic supervision
model of classified management and differentiated inspection shall be implemented
according to the risk level and credit evaluation of pharmaceutical retailers. With the
advancement of intelligent supervision the requirements for pharmacies' own compliance
management capabilities have been further improved and compliance management
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capability has also become an important threshold for obtaining outpatient coordination
qualifications. The standardized management and stronger risk prevention and control
capabilities of large chain pharmacies will give play to greater advantages under the
regulatory environment.As compliance costs continue to rise numerous small chains and single medical
insurance stores will withdraw from medical insurance or be closed. Medical insurance
qualifications will further concentrate among the top chain pharmacies. According to CMH
data as of the end of 2025 Q3 among the nearly 30000 medical insurance stores with a net
year-on-year decrease small and medium-sized chains (chain pharmacies outside the top 30)
and single pharmacies accounted for 92.9%.
4. Policies drive prescription outflow increasing the market share of pharmaceutical
retail
With the advancement of the "Healthy China" strategy and the deepening of the reform
of the medical and health system a series of policies such as separation of dispensing from
prescription volume-based procurement dual channels medical insurance reform and the
inclusion of designated pharmacies in coordinated outpatient management have been
gradually implemented promoting the continuous outflow of prescription drugs from
hospitals. The nine ministries including the Ministry of Commerce have jointly issued the
Opinions pointing out that the reform of the medical and health system shall be continuously
promoted and medical institutions shall be promoted to strengthen their external prescription
services.
(1) Separation of dispensing from prescription (SDP) is an inevitable trend
"Separation of dispensing from prescription (SDP)" is an important goal of China's
medical system reform and prescription outflow is also an important direction for the "SDP".China's medical resources are relatively concentrated and patients tend to seek diagnosis
treatment and purchase medicine in public hospitals. In recent years the state has deepened
the reform of the medical system. Various policies such as DRG (Diagnosis Related Group
payment) DIP (Diagnosis-Intervention Packet payment) volume-based procurement and
opening outpatient pooling medical insurance to pharmacies have been gradually
implemented continuously promoting the "SDP" and prescription outflow.In recent years prescription drug sales in China have shifted towards outside hospitals
with the retail terminal share increasing by about 5% from 16% in 2017 to 21% in 2024.However compared with developed countries there was still much room for improvement
23 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
in the proportion of out-of-hospital sales of prescription drugs in China. In 2022 the
proportion of prescription drug sales outside hospitals in Japan and the United States reached
79% and 86% respectively.
Data sources: CMH Ministry of Health Labour and Welfare of Japan IQVIA
(2) Medical insurance account reform strengthens mutual aid and liquidity
The reform of medical insurance accounts shifts towards "allocation by disease"
strengthening mutual aid. More medical insurance funds flow to people with high demand
for medical treatment and medication purchase demonstrating higher liquidity. Before the
medical insurance account reform all personal contributions and part of the employer's
contributions were allocated to the individual medical insurance accounts. Expenses for
outpatient visits or drug purchases at pharmacies could only be paid from the individual
account. After the reform part of the employers' contributions has been allocated to the
pooled medical insurance funds. At the same time the reimbursement scope of the pooled
medical insurance fund has been expanded to outpatient reimbursement hospitalization
reimbursement and pharmacy purchase reimbursement. The medical insurance account
reform is essentially a change in the medical security model. The "allocation by person"
model of medical insurance funds has shifted to the "allocation by disease" model. The
increase in the pooled medical insurance funds compensates for the reduction in individual
accounts and expanding the reimbursement scope to pharmacies will promote prescription
outflow.
(3) Inclusion of designated pharmacies in outpatient pooling management facilitates
medical insurance reimbursement
24 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
The inclusion of designated pharmacies in outpatient pooling management
implementing the same medical insurance benefits as designated primary medical institutions
has significant effects on attracting patient flow. On February 15 2023 the National
Healthcare Security Administration issued the Notice on Further Improving the Management
of Including Designated Retail Pharmacies in Outpatient Pooling Management actively
supporting designated retail pharmacies to enable outpatient pooling services improving the
payment policy for outpatient pooling in designated pharmacies and clarifying the
supporting policies for including designated retail pharmacies in outpatient pooling. This
signifies a significant improvement in the role and status of retail pharmacies in the national
medical and health security system and is also a substantial promotion of prescription
circulation and the SDP. Pharmacies qualified as coordinated designated pharmacies have
added payment with coordinated medical insurance funds based on personal accounts for
medical insurances and convenient medical insurance reimbursement better
serves customers. According to the drug sales data of MENET the proportion of terminal
sales in retail pharmacies increased from 22.7% in 2014 to 31.7% in 2025 while the
proportion of terminal sales in public hospitals gradually decreased from 69% in 2014 to
59.2% in 2025. The outflow of prescriptions continues to advance.
Data source: Menet
5. Development trend of digital intelligence specialization and diversification
National policies promote the digital intelligence specialization and diversification of
retail pharmacies. The Opinions jointly issued by 9 ministries including the Ministry of
Commerce encourage local governments to introduce special support policies for digital and
intelligent health service upgrading and procure Internet hospitals relying on physical
25 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
medical institutions to build health consultation centers for retail pharmacies; encourage
pharmaceutical retailers to build teams of licensed pharmacists and health consultants
strengthen the business training for pharmaceutical technicians and improve professional
service capabilities; encourage chain pharmacies to enrich their pharmaceutical retail formats
optimize their product and service experience and support the innovative development of
time-honored pharmaceutical retailers.The digital and intelligent transformation of the pharmaceutical retail industry has
become an industry consensus and "pharmaceutical + AI" promotes the continuous
upgrading of the industrial chain. 5 ministries including the National Health Commission
have pointed out in the Implementation Opinions on Promoting and Standardizing the
Application and Development of "Artificial Intelligence + Healthcare to strengthen the
standardized management services for residents' chronic diseases create intelligent chronic
disease management and personal health portrait applications and build a new intelligent
service model for grassroots chronic disease management; strengthen health management
aged care and childcare services provide residents with personalized intelligent healthy and
scientific diet and exercise suggestions and promote intelligent applications on health
management and daily nursing guidance for key groups such as the elderly pregnant women
and children.According to a research report of China Securities Chinese pharmacies might be
divided into specialized and diversified pharmacies in the future. Among them the essence
of specialized pharmacies lies in meeting the specialized medication needs of people flowing
out of hospitals including outpatient coordinated pharmacies dual-channel pharmacies
commercial insurance pharmacies in-hospital pharmacies specialty pharmacies etc.; The
essence of diversified pharmacies consists in satisfying people's daily health needs including
drugstores maternity and baby stores pet stores sports stores convenience stores
experience stores aging-friendly stores hot commodity stores etc.At present there is still a lot of room for development in the diversification of products
and services in pharmacies in China. Data showed that the proportion of non-drug sales in
the Japanese drugstore industry reached 67.3% in 2022; CVS Pharmacy in the United States
saw its revenue from healthcare benefits and medical services reached 70.5% in 2024 while
the proportion of non-drug sales in Chinese pharmacies was only 18.7% in 2025 with huge
space for development.
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Data sources: CVS financial reports Japan Association of Chain Drug Stores China Drug
Store Menet
(II) Cyclical Characteristics of the Industry
The demand for pharmaceutical consumption is mainly determined by the size of the
covered population and the incidence of diseases belonging to essential consumption.Compared with other general retail industries the pharmaceutical retail industry is relatively
less affected by the macroeconomic environment and economic cyclicality is not obvious.Based on objective conditions such as accelerated aging and rising resident consumption
levels in China residents' demand for medicine continues to grow and the demand for health
care products and professional pharmaceutical services continues to increase.(III) Company's Position in the Industry
LBX is an influential pharmaceutical retail chain enterprise in China committed to
building a technology-driven health service platform. In 2025 it was the thirteenth time that
the Company was evaluated by CPEO as "TOP100 Champion in Overall Competitive
Strengths among Chinese Drug Retailersterprises". Besides it was evaluated as "TOP100
Champion in Overall Competitive Strengths among Chinese Drug Retail Enterprises" and
"TOP 10 Urban Drug Retail Groups in Competitive Strength". It was ranked No.4 by China
Drug Store among "TOP 100 Chinese Pharmacy in Value 2024-2025" and honorably listed
by China Association of Pharmaceutical Commerce as "Top Ten Best Health Stations in
Total Sales among Chinese Pharmaceutical Retail Enterprises in 2024". Honorably evaluated
as the Best Managed Companies ("BMC") for the fourth consecutive year the Company was
also the sole pharmaceutical retailer included in the list of the BMC this time.III.Business Discussion and Analysis
LBX Pharmacy is committed to building a "technology-driven health service platform".As of December 31 2025 the Company had built a marketing network covering 18 provinces
over 150 prefecture-level cities and above across the country totaling 14975 stores
including 9732 direct-sale stores and 5243 franchised stores. In 2025 875 new stores were
opened by the Company including 84 direct-sale stores and 791 franchised stores.
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In 2025 the Company achieved operating revenue of RMB 22236615347 with a year-
on-year decline of 0.54% a net profit attributable to shareholders of the parent company
amounting to RMB 381.85 million with a year-on-year decrease of 26.44%. The profit
attributable to shareholders of the parent company net of the impacts of goodwill and land
impairment was RMB 620.45 million representing a year-on-year decrease of 1.0% and net
cash flows from operating activities amounting to RMB 3142.63 million with year-on-year
growth of 55.08%.For a detailed discussion and analysis of the Company's business conditions please refer
to Section III "Discussion and Analysis by the Management" Part IV "Analysis of Core
Competitiveness during the Reporting Period" of this Report.IV.Analysis on Core Competitiveness during the Reporting Period
√Applicable □Not Applicable
The Company continuously consolidated the strategic positioning as a "technology-
driven health service platform" and built a moat with seven major advantages. During the
reporting period the operating quality improved quarter by quarter. The net profit attributable
to the parent company declined by 22% year-on-year in the first quarter further dropped
to 18.9% in the second quarter turned positive in the third quarter with a year-on-year
increase of 2.6% amounted to RMB 91.8 million net of non-comparable impairment factors
in the fourth quarter demonstrating a year-on-year growth. The operating quality was
continuously consolidated. Firstly the Company had a wide and deep pharmaceutical retail
network; Secondly the Company owned an industry-leading pharmaceutical logistics system
and smart supply chain; Thirdly the Company achieved continuous expansion through
ecological empowerment and the mature franchise and alliance asset-light model; Fourthly
the Company possessed mature M&A experience and integration capability and used high-
quality alliance stores as incubation pools for potential M&A targets; Fifthly the Company
had an industry-leading proportion of stores with medical insurance co-ordination
qualifications and leveraged its professional advantages to attract customers; Sixthly the
Company owned a wide range of chronic disease management pharmacies in the industry
and strengthened customer stickiness with professionalism and warmth; Seventhly the
Company laid a solid digital intelligence foundation in the industry and empowered efficient
operation with the power of digital AI.(I) Channel Advantages
1. The Company has created a broad and in-depth nationwide store network
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The Company is one of China's pharmaceutical retailers with the widest coverage and
deepest penetration. As of the end of the reporting period the Company had owned 14975
stores which covered 18 provincial markets over 150 prefecture-level cities and above
including 9732 direct-sale stores and 5243 franchised stores. In 2025 875 new stores were
opened by the Company including 84 direct-sale stores and 791 franchised stores.The Company focuses on core advantageous markets and actively expands the lower-
tier markets. During the reporting period the Company deployed stores in 18 provinces and
cities across the country ranked among the top three in terms of the number and market share
of stores in 11 advantageous provinces. As of the end of 2025 the number of stores in
advantageous provinces and key cities had accounted for 90.2%.Meanwhile the Company has accelerated its penetration into the lower-tier markets
with a large population base and low operating costs. As of the end of 2025 the stores in
prefecture-level cities and below had accounted for 78%; Among the new stores in 2025
stores in prefecture-level cities and below had accounted for 88%.
2. The Company has an industry-leading pharmaceutical logistics system
The Company possesses an industry-leading pharmaceutical logistics system achieving
an efficient logistics network with the Changsha logistics center as the national distribution
center (NDC) and logistics centers in Yangzhou Xi'an Tianjin etc. as regional distribution
centers (RDC) radiating to 18 provincial distribution centers (DC) for direct delivery to
stores with warehousing area exceeds 320000 m2. During the reporting period the Company
continuously explored the application of digital AI in logistics iteratively upgraded the
warehousing management system (WMS) of the logistics distribution centers improved
human efficiency while expanding its capacity and built a reporting system online
monitoring platform and intelligent inspection platform.
3.The Company's new retail business has creatively maintained high growth
The Company's new retail service system has been continuously upgraded and its
online business has achieved rapid growth. Focusing on the "category leader + private brand"
strategy online the Company has responded to the dynamic market demand and
continuously improved the performance efficiency and customer satisfaction with the aid of
AI algorithms. During the reporting period the total sales of the Company's online channels
(including franchised stores) exceeded RMB 3.12 billion representing a year-on-year
increase of 26.3%. As of the end of 2025 the Company had owned 12352 O2O take-out
service stores and 730 24-hour stores.
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In private domains the mini program mall named "LBX Pharmacy Healthy Door-to-
door Drug Delivery" has been newly upgraded optimizing the online purchase link around
the user experience improving the convenience of finding medicine and the timeliness of
delivery and greatly increasing private domain orders and user visits. As of the end of 2025
the cumulative users of mini programs had exceeded 30 million representing a year-on-year
increase of approximately 30%.In addition the Company's new retail business has opened up cross-border commodity
trading links. On the public B2C platforms overseas flagship stores have been launched
online and in private mini programs global purchasing business has been added to meet
customer demand for imported over-the-counter drugs dietary supplements personal care
and beauty products.
4. The Company has developed diversified and inclusive franchising and alliance
businesses
The Company has achieved steady development in its franchising business of "health
pharmacies" and consolidated its scale advantage. Firstly focusing on "integration of single
old stores + upgrading of project stores" it has been absorbing the existing market and the
franchised old stores in 2025 accounted for 73.7% representing a year-on-year increase of
34.7%. Secondly through digital AI empowerment and non-pharmaceutical innovations the
Company improved its store operation efficiency and specially cleaned up abnormal stores
in the fourth quarter to optimize the overall operation quality of franchised stores. As of the
end of 2025 the Company had owned 5243 franchised stores including 791 new stores
opened in 2025. The annual distribution sales of franchising business amounted to
approximately RMB 2.412 billion representing a year-on-year increase of 6%.In terms of the Company's alliance business "Easy Drug" extensive cooperation is
conducted and high-quality acquisition targets are reserved. The alliance business focuses
on pharmaceutical retail market operation services and commodity export. As of the end of
2025 29 provinces and cities had been covered; The Company had owned 22491 alliance
stores (excluded from the total number of stores of the Company). In 2025 the Company
achieved distribution sales of RMB 440 million with a year-on-year increase of 4.26%.Besides the Company regarded high-quality alliance enterprises as incubation pools
of potential M&A targets. As of the end of 2025 the Company had become a shareholder of
225 alliance partners and owned 11078 stores with retail scale of RMB 13.056 billion.
(II) Commodity Advantages
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1. Deepen the reform of commercial procurement and highlight the efficiency of
supply chain and commodity competitiveness
(1) Innovation in commercial procurement in-depth and refined management cost
reduction and efficiency increase
In 2025 commercial procurement collaboration continuously reduced costs increased
efficiency activated supply chain efficiency and enhanced product competitiveness. In 2025
the consolidated gross profit margin was 32.30% with a year-on-year increase of 0.87%. The
decrease in the Company's gross profit margin was mainly attributable the rapid growth of
DTP pharmacies of new special drugs and online retail sales which led to the increase in the
proportion of low gross profit segments. Net of DTP and online retail the gross profit margin
of offline retail (excluding DTP) increased by 0.6% on a year-on-year basis. Firstly make
unremitting efforts in category reform exploration promotion and iteration of top categories.As of the end of the reporting period the Company had merchandised approximately 24700
SKUs (product specifications). Secondly optimize the category management system
implement the full-link responsibility system for category managers' "marketing
procurement commercial sales" practise a PK mechanism for category managers and
activate the initiative of commercial procurement talents. Thirdly promote channel
integration and centralized procurement; streamline distribution levels and strengthen
terminal category management. In 2025 sales from unified procurement accounted for
75.9% representing a year-on-year increase of 3.5%. Fourthly the construction iteration and
digital intelligence of commercial procurement management kanban support business
decision-making.
(2) Upgrading of "cost-effective" projects and enhancement of product competitiveness
During the reporting period the Company deepened the iteration of "cost-effective
projects (formerly known as "torch projects") and made synergistic efforts in marketing
procurement and commercial sales. Firstly establish a variety management mechanism
strengthen the supply guarantee capability for key varieties increase the sales share of cost-
effective varieties reduce customers' medication costs and increase gross profit margin.Secondly deepen strategic procurement and effectively reduce intermediate costs through
category negotiation centralized tendering and evaluation of new product introduction.Thirdly improve the price monitoring system integrate offline and online control and adopt
precise marketing strategies to enhance product competitiveness.
(3) Enhancement of inventory control and maintenance of efficient product turnover
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The Company has achieved remarkable results in its inventory and cash flow control
projects. Firstly empower inventory management with digital intelligence and optimize cash
flows using sales forecast ordering decision-making intelligent replenishment and other
methods to strengthen inventory turnover on the premise of guaranteeing supply. In 2025
the out-of-stock rate of all goods decreased by 0.6% on a year-on-year. Secondly optimize
the product distribution strategy according to local conditions increase the sell-through rate
and improve customers' drug purchase experience. Thirdly strengthen inventory review and
management monitor abnormal inventories and reduce product loss. In 2025 the days sales
of inventory were 88 days shortened by 6 days on a year-on-year basis.
2. R&D and innovation of private brands and creation of premium products for
healthy living
The Company has performed continuous R&D and innovation of its private brands and
created its second growth curve. Firstly the product development standards executed by the
Company exceed industry or national standards and the Company has established an end-
to-end quality control system. Secondly we have performed R&D of new categories around
customers' health scenarios developed high-quality cost-effective featured products
continuously expanded categories and iteratively upgraded them. Thirdly create "LBX
preferred" non-medical products and choose premium safe healthy and highly cost-
effective health lifestyle products for consumers. In 2025 the sales of private brands in the
self-operated stores accounted for 22.5% with a year-on-year increase of 0.5%.
3. Rapid development of diversified products being good but inexpensive
satisfying diversified needs
Firstly the Company has focused on customers' health needs and created a good but
inexpensive non-pharmaceutical product matrix around the core needs for "treating diseases
improving quality and enjoying life". Secondly drive product selection with data and
continuously enrich product assortments including nutrition health care healthy dietary
supplements health care equipment household daily necessities personal care and other
varieties to satisfy consumers' increasingly more diversified healthy life needs. In 2025 the
Company introduced more than 300 non-medical SKUs.(III) Service Advantages
1. Highly standard professional pharmaceutical services and professional
qualification for giving priority to undertake prescription outflow
(1) Consolidate the foundation for compliance operation
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In 2025 the Company continuously improved its professional service system for stores
and consolidated its foundation for compliance operation in terms of medical insurance.Firstly build an integrated operation system covering agile policy response and qualification
lifecycle management. Secondly deploy online hospitals' prescription capacity nationwide
strengthen the ability to undertake prescription outflow and improve the risk prevention and
control system to ensure the safety of medical insurance funds. Thirdly improve the
traceability code project and use the information system to strictly control the acquisition
and verification of the full-link traceability codes for drug "purchase inventory and sales"
so as to achieve "maximum code acquisition as well as code-based settlement and payment".
(2) Specialized pharmacies undertake prescription outflow
Construct pharmacies up to high standards and provide professional pharmaceutical
services. The Company has industry-leading medical insurance qualifications and guarantees
the medical service needs of a majority of the insured. As of the end of 2025 the Company
had owned 13411 stores with medical insurance qualification and overall qualified 4511
stores. Besides a total of 1725 stores of the Company had obtained the designated
qualification for "outpatient chronic diseases" accounting for 17.73% of direct-sale stores.The Company had 317 stores with dual-channel qualification which could give priority to
undertake prescription outflow.The Company attaches great importance to professional team building. Through the
"online + offline" training systems we encourage our employees to obtain qualifications for
licensed pharmacists and pharmacists. The Company has more than 15000 licensed
pharmacists. Besides through AI empowerment and "competition instead of training" the
professional service capabilities of pharmacies are strengthened. Our digital and intelligent
"Drug Recommendation Tool" empowers frontline store clerks to provide customers with
high-quality pharmaceutical services.
2. "Relational" heart-warming services and continuous establishment of highly
sticky customer relationships
(1) Initiate transformation of "relational" stores
In 2025 the Company initiated and deepened the transformation of stores from being
"transaction-oriented" to be "relational" strengthened customer stickiness and improved
customer satisfaction. Firstly reconstruct and publicize the service concept require store
employees to focus on "selling what customers want to buy" provide customers with
emotional value promote the transformation of store clerks from salesmen to health
33 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
consultants trusted by customers and enhance customer experience. Secondly optimize the
assessment mechanism increase service indicators for frontline employees and "internal
customer" evaluation indicators for non-frontline employees and strengthen service
orientation. Thirdly create a benchmark model for relationship stores launch a "relational
transformation" training system focus on service concepts and communication skills
establish emotional connections with customers and compete for customers' mind.
(2) Upgrade of membership marketing and traffic redirection
The Company has continuously improved its membership management system. Firstly
reconstruct and innovate membership marketing modules and enrich interactive scenarios.Secondly iteratively upgrade a membership interests system to create a more attractive
membership ecosystem. Thirdly digital intelligence empowers members to refine their
operational capabilities and improve the efficiency of marketing activities. As at the end of
the reporting period the Company had owned 108 million members (including members of
franchised stores) and 31.36 million active users and the membership sales accounted for
73.43%.
3. Diversified services and comprehensive service stations for chronic disease the
silver haired convenience and commercial insurance
(1) Creating health service stations for chronic diseases
The Company strives to build long-term and in-depth chronic disease management
relationships. Firstly deploy Bluetooth smart devices for self-testing of chronic diseases in
10000 stores across the country and turn pharmacies into health service stations so that
convenient and reliable chronic disease management services may penetrate into
communities. Secondly rely on digital intelligence technologies for full-cycle health
management systematic filing and regular health tracking. As at the end of the reporting
period the Company had filed more than 22.89 million people served 140 million self-tests
followed up on 42.8 million people and organized 37700 online and offline health education
sessions in terms of chronic disease management services.
(2) Promoting convenience services and silver-hair services
Firstly promote convenience services and build community-friendly stores. During the
reporting period the Company built "love stations" in 10000 stores across the country to
promote convenience services providing free services such as rest seats free tea and free
debridement for outdoor workers and citizens. Some stores provided convenience restrooms
parcel collection and other services. Secondly in response to the health needs of the silver-
34 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
haired groups continuously carry out "aging-friendly construction" of stores set up barrier-
free passages and magnifying glasses on the hardware and provide services such as helping
take taxis with smart mobile phones and assisting in registering for medical treatment.
(3) Developing the commercial insurance business to explore increments
The Company keeps informative about policy trends and explores the increments of the
commercial insurance business. Firstly by docking with technical systems of commercial
insurance service agencies and cooperating with insurance companies Internet hospitals
pharmaceutical companies etc. we have innovated our "drug + insurance" product model
and opened up the closed loop of insurance application drug purchase for medical treatment
and claim settlement. Secondly provide professional services such as distribution of special
drugs chronic disease management and medication guidance for commercial insurance
members and adapt to the needs for implementing Huiminbao project and innovative drug
catalog policies covered by the commercial insurance . As at the end of the reporting period
the Company had enabled commercial insurance contract performance services in more than
12000 stores.
(IV) Personnel Advantages
1. Continuously deepening the reform of organizational structure and further
stimulating the vitality of the management team
(1) Stimulating the vitality of business units
Firstly integrate functions in the organization to achieve strategic focus and efficient
coordination of regional resources. During the reporting period the Company further
streamlined the setting of relevant functions combined related functions and strengthened
regional cost control. Secondly aim to serve the frontline in terms of management and "let
people who can hear the sound of gunfire make decisions" in order to make business
decisions more accurate and efficient. Thirdly stimulate the vitality of all business units and
strengthen the management of "top leaders" through projects such as kinetic mechanism
construction horse racing and job rotation plan to help improve performance. Fourthly
iterate the process management and control system streamline links to improve process
efficiency support agile business transformation promote the reasonable delegation of
approval authorities and effectively empower frontline business units.
(2) Transformation from "shopkeepers" to "itinerary merchants"
The Company has started and promoted the transformation of its business line from
"shopkeepers" to "itinerary merchants". Firstly the positions strongly related to business are
35 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
designated as "itinerary merchants". The Operation Guide for Itinerary Merchants has been
issued. The management team normalizes "itinerary merchants" to discover and solve
practical problems in the frontline. Secondly independently develop the intelligent tool
known as "Assistant for Itinerary Merchants" to improve efficiency and quickly respond to
frontline needs. Thirdly formulate a mechanism for exposing itinerary merchants' data in the
list and improve the quality of itinerary merchants' work through internal PK named
"Competition Learning Catching up".
2. Consolidating the talent guarantee system complete talent echelon and high
organizational resilience
The Company optimizes its talent training and recruitment system to provide talent
support for business growth. Firstly focus on the cultivation of echelon talents perform
hierarchical classified targeted training carry out the successor project for B posts and
promote the staffing rate of middle and senior B posts to reach 99.5%. Secondly upgrade the
digital training system and the learning platform to visualize the learning paths for employees
and procure the internal teaching staff to become increasingly stronger. Thirdly initiate the
"Talent Return Home Plan" to provide targeted return channels for departed employees
strengthen organizational resilience and enhance the employers' brand images.
3. Cultivating employees' altruistic mindset and procuring all employees to have
service consciousness and collaborative spirit
Integrate the cultivation of altruistic mindset into the talent development system. The
Company has continuously promoted the change from "benefiting employees" to "benefiting
customers" strengthened the altruistic value recognition of employees through compulsory
training and altruistic case promotion enhanced the service awareness and collaborative
spirit of all employees and further optimized the customer experience. In 2025 a total of
4231 excellent cases of "altruistic" services sprang up in the Company including 121 first
aid cases.(V) Innovation Advantages
1. Strengthen digital intelligence capabilities improve quality and efficiency in
full-link business scenarios
Digital intelligence drives more efficient decision-making and strengthens compliance
control over medical insurance. Firstly deepen the digitalization of the supply chain realize
the transition from "online procedures" to "intelligent decision-making" upgrade the supplier
collaboration platform and strengthen supplier data management. Secondly improve the
36 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
efficiency of logistics operations realize the closed-loop control over the whole link of
contract performance reduce operating costs and improve the timeliness of contract
performance. Thirdly digital intelligence empowers medical insurance compliance. During
the reporting period the Company comprehensively promoted the construction of a medical
insurance compliance system and a code platform system and built a digital control system
for "code collection - medical insurance verification - risk warning". Fourthly consolidate
data governance provide standardized data support for full-link business scenarios and
ensure data consistency and traceability.
2. Promote the implementation of AI applications and independently
develop comprehensive Q&A agents
The Company established the AI Application Strategy Committee to promote the
applications of the full-link information system and AI technologies and help it reduce costs
and increase efficiency. Firstly independently develop an AI-based comprehensive Q&A
agent known as "LBX Maruko AI" covering eight core business scenarios such as medical
insurance policies chronic disease services and new retail. Secondly carry out smart "health
pharmacy" agent project which converts the Company's mature experience in commodity
management business diagnosis pharmaceutical services and other fields into a smart agent
system empowering small and medium-sized chains and single pharmacies to improve their
efficiency. As at the end of the reporting period the pilot AI agent system had covered more
than 200 franchised stores. Thirdly promote the "AI Learning and Talent Training" program
build a dual-track model of online AI learning platform and offline practical training camp
create a hierarchical and classified AI talent matrix and continuously cultivate AI application
talents.
3. Enhance brand awareness and create brand campaigns and new media matrix
The Company has continuously promoted brand innovations built a strong
"professional warm" brand image and deepened the emotional connection with consumers.Firstly based on the health service scenarios around residents carry out brand activities in
community stores. In 2025 13 brand co-building activities were carried out included in the
national hot search list for 6 times with a year-on-year increase of 300%. Secondly
continuously promote the new media matrix of "official account + professional online
celebrity pharmacist IP + store clerk KOC" and build a health service content ecology
covering the whole population with the total exposure of new media in the whole area
exceeding 264 million. Thirdly in 2025 the Company set up "love stations" in 10000 stores
37 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
nationwide creating a positive model for enterprises to serve people's livelihood of the
grassroots widely recognized by government authorities at all levels People’s Daily CCTV
news other mainstream media and the public. The Company's total annual omnichannel
brand exposure exceeded 7.1 billion times representing a year-on-year increase of 36.5%
and effectively enhancing brand awareness.V.Main Business Operations during the Reporting Period
In 2025 the Company achieved operating revenue of RMB 22236615347 with a year-
on-year decline of 0.54% a net profit attributable to shareholders of the parent company
amounting to RMB 381.85 million with a year-on-year decrease of 26.44%. The profit
attributable to shareholders of the parent company net of the impacts of goodwill and land
impairment was RMB 620.45 million representing a year-on-year decrease of 1.0% and net
cash flows from operating activities amounting to RMB 3142.63 million with year-on-year
growth of 55.08%.(i) Analysis of primary business
1. Analysis of changes to relevant items of the income statement and the cash flow statement
Unit: RMB Currency: RMB
Amount in the same
Amount for the Change proportion
Item period of the
current period (%)
previous year
Operating income 22236615347 22357610195 -0.54
Operating costs 15054734735 14942332455 0.75
Selling expenses 4699222568 4947435885 -5.02
Administrative expenses 1288100931 1257665102 2.42
Financial expenses 130424433 173025944 -24.62
R&D expenses 51071549 2013597 2436.33
Net cash flows from operating
3142633749202645879755.08
activities
Net cash flows from investing
-236659327-62787587162.31
activities
Net cash flows from financing
-2748868697-1348348430-103.87
activities
Explanation of change in operating income: Basically flat compared to last year.Explanation of change in operating cost: Basically flat compared to last year.Explanation of change in selling expenses: Mainly attributable to the initial results of cost control
measures in the current period.Explanation of change in general and administrative expenses: Basically flat compared to the previous
year.Explanation of change in financial expenses: Mainly due to the decrease in interest expenses caused by
the decrease in bill discounting loans in the current period.Explanation of change in R&D expenses: Mainly due to the increase in R&D expenditure in the current
period.Explanation of change in net cash flow from operating activities: Mainly due to the decrease in operating
receivables and the increase in operating payables in the current period.
38 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Explanation of change in net cash flow from investing activities: Mainly due to the decrease in the
purchase and construction of long-term assets and the decrease in investment in new M&A projects
during the current period.Explanation of change in net cash flow from financing activities: Mainly due to the decrease in loans
and the decrease in dividends distributed by the Company during the period.Detailed explanation of significant changes in the Company's business type profit
structure or profit sources during the period
□Applicable √Not Applicable
2. Analysis of Revenue and Cost
√Applicable □Not Applicable
See table below
(1). Main business by industry product region and sales model
Unit: RMB Currency: RMB
Primary business by industry
Increase or
Increase or Increase or
decrease in
decrease in decrease in
gross profit
operating operating
margin
Operating Gross profit income costs
By industry Operating costs compared
income margin (%) compared compared
with the
with the with the
previous year
previous year previous year
(percentage
(%)(%)
points)
Retail 19114844302 12350670127 35.39 0.04 1.66 -1.03
Franchise
alliance and 3003707956 2630021787 12.44 -3.25 -2.56 -0.62
distribution
Others 118063089 74042821 37.29 -19.32 -21.76 1.96
Total 22236615347 15054734735 32.30 -0.54 0.75 -0.87
Primary business by products
Increase or
Increase or Increase or
decrease in
decrease in decrease in
gross profit
operating operating
margin
Operating Gross profit income costs
By products Operating costs compared
income margin (%) compared compared
with the
with the with the
previous year
previous year previous year
(percentage
(%)(%)
points)
Chinese and
western
180180387781254534417430.371.883.66-1.19
patent
medicine
Chinese
161019052289102904444.66-5.49-7.921.46
medicine
Non-
pharmaceutic 2608386047 1618361517 37.96 -12.15 -13.57 1.03
als
Total 22236615347 15054734735 32.30 -0.54 0.75 -0.87
Primary business by regions
Increase or Increase or Increase or
decrease in decrease in decrease in
operating operating gross profit
Operating Gross profit
By regions Operating costs income costs margin
income margin (%)
compared compared compared
with the with the with the
previous year previous year previous year
39 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(%) (%) (percentage
points)
Central China 8893481123 6008573651 32.44 -1.72 -0.19 -1.04
South China 1086417913 702847559 35.31 -3.01 -2.11 -0.59
North China 2481119397 1752806695 29.35 2.21 3.34 -0.77
East China 5846880128 3991877461 31.73 -0.42 1.26 -1.14
Northwest
3928716786259862936933.861.011.26-0.16
China
Total 22236615347 15054734735 32.30 -0.54 0.75 -0.87
In 2025 the decline in the Company's gross profit margin was mainly attributable to the
rapid growth of DTP (new special drugs) and online retail sales which led to the increase
in the proportion of low gross profit segments. The gross profit margin of offline retail net
of DTP and online retail increased by 0.6% on a year-on-year basis.Primary business by industries products regions and sales models
By industry: The Company's operating income mainly comes from pharmaceutical retail
business franchise alliance and distribution business. Among them retail business is
dominant accounting for over 85% of total revenue during the reporting period. Franchise
alliance and distribution business involves distribution to franchisees and small and
medium-sized chains accounting for about 14% of total revenue. The Company's franchise
business leads among listed private pharmacies with a relatively high revenue share and
its gross profit margin is lower than the retail business gross profit margin. Other business
includes commodity sales revenue and store sublease income from the Company's
subsidiary Yaoshengtang Technology to external units accounting for about 1% of total
revenue.By category: Sales of Chinese and Western patent medicines account for about 81%
making it the Company's most important product category with operating income
increasing by 1.88% year-on-year. Sales of Chinese medicine account for about 7% with
operating income decreasing by 5.49% year-on-year.By region: Central China accounts for over 40% of revenue making it an important source
of business income for the Company where the Company has a prominent leading
advantage.Note: Central China region includes: Hunan Province Hubei Province Jiangxi Province
Henan Province;
South China region includes: Guangdong Province Guangxi Province;
North China region includes: Tianjin Municipality Inner Mongolia Autonomous Region
Shanxi Province;
East China region includes: Zhejiang Province Shanghai Municipality Anhui Province
Jiangsu Province Shandong Province;
Northwest China region includes: Shaanxi Province Gansu Province Ningxia Hui
Autonomous Region Guizhou Province.
(2). Analysis of output and sales
□Applicable √Not Applicable
(3). Performance of major purchase contracts and major sales contracts
□Applicable √Not Applicable
40 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(4). Cost analysis
Unit: RMB Currency: RMB
By industries
Change
proportion
of the
Ratio to Ratio to
amount for
total total costs
the current
Cost cost in Amount for the for the Situation
Amount of the period
By industry comp the same period of the same period Explanati
current period compared
onents current previous year of the on
with the
period previous
same period
(%) year (%)
of the
previous
year (%)
Retail Goods 12350670127 82.04 12148669938 81.30 1.66
Franchise
alliance and Goods 2630021787 17.47 2699022682 18.06 -2.56
distribution
Others 74042821 0.49 94639835 0.63 -21.76
Total 15054734735 100 14942332455 100 0.75
By product
Change
proportion
of the
Ratio to Ratio to
amount for
total total costs
the current
Cost cost in Amount for the for the Situation
Amount of the period
By products comp the same period of the same period Explanati
current period compared
onents current previous year of the on
with the
period previous
same period
(%) year (%)
of the
previous
year (%)
Chinese and
western patent Goods 12545344174 83.33 12102123176 80.99 3.66
medicine
Chinese
Goods 891029044 5.92 967677073 6.48 -7.92
medicine
Non-
pharmaceutica Goods 1618361517 10.75 1872532206 12.53 -13.57
ls
Total 15054734735 100 14942332455 100 0.75
Other descriptions of cost analysis
None
(5). Changes in the scope of consolidation due to changes in equity of major subsidiaries during
the reporting period
√Applicable □Not Applicable
See Note IX in Section VIII Financial Report.
(6). Major changes or adjustments in the Company's business products or services during the
reporting period
□Applicable √Not Applicable
41 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(7). Main customers and suppliers
Customers or suppliers controlled by the same controller are presented together as the same customer or
supplier unless they are actually controlled by the same state-owned asset management organization.Explanation on consolidated calculation and presentation of the information on the following customers
and suppliers as under common control
None
A. Main customers and suppliers of the Company
√Applicable □Not Applicable
The sales of the top five customers were RMB 260.53 million accounting for 1.17% of the
total annual sales. Among the top five customers the sales of related parties were RMB
52.07 million accounting for 0.23% of the total annual sales.
Purchases from the top five suppliers amounted to RMB 3651.1 million accounting for
20.17% of the total annual purchases; among them purchases from related parties within
the top five suppliers amounted to RMB 0 accounting for 0% of the total annual purchases.B. During the reporting period there were situations where sales to a single customer
accounted for more than 50% of the total sales or where new customers existed
among the top 5 customers or where heavy reliance on a few customers existed.□Applicable √Not Applicable
During the reporting period there were situations where the purchase from a single
supplier exceeded 50% of the total purchase or where new suppliers existed among
the top 5 suppliers or a heavy reliance on a few suppliers existed.□Applicable √Not Applicable
C. Delisting or other risk warnings for the Company's stocks during the reporting
period
Top 5 customers
□Applicable √Not Applicable
Top 5 suppliers
□Applicable √Not Applicable
D. Trade business income of the Company during the reporting period
□Applicable √Not Applicable
Top 5 customers whose trade business accounts for more than 10% of their operating
income
□Applicable √Not Applicable
Top 5 suppliers whose income from trade business accounts for more than 10% of the
operating income
□Applicable √Not Applicable
Other explanations:
None
42 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
3. Expenses
√Applicable □Not Applicable
Item Amount for the Amount in the same Change proportion
current period period of the (%)
previous year
Selling expenses 4699222568 4947435885 -5.02
Administrative 1288100931 1257665102 2.42
expenses
Financial expenses 130424433 173025944 -24.62
R&D expenses 51071549 2013597 2436.33
Other explanations: Selling expenses decreased by 5.02% mainly due to the initial results
of expense control measures in the current period. Administrative expenses increased by
2.42% which was basically the same as the previous year. Financial expenses decreased by
24.62% mainly due to the decrease in interest expenses caused by the decrease in the bill
discounting loans in the current period. R&D expenses increased by 2436.33% mainly due
to the increase in R&D expenses in the current
4. R&D Investments
(1).R&D Investment
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Expensed R&D investment in the
51071549
current period
Capitalized R&D investment in the
39128258
current period
Total R&D investments 90199807
Proportion of total R&D investments
0.41
to operating income (%)
Capitalization rate of R&D
43.38
investments (%)
(2).R&D Personnel
√Applicable □Not Applicable
Number of the Company's R&D personnel 325
Proportion of R&D personnel to the total number of
0.88
employees in the Company (%)
Educational structure of R&D personnel
Category of educational structure Number of persons
Doctor 0
Postgraduate 26
Bachelor's Degree 231
Junior college 68
High school and below 0
Age structure of R&D personnel
43 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Category of age structure Number of persons
Under 30 (excluding 30) 54
30-40 (including 30 excluding 40) 234
40-50 years old (including 40 excluding 50) 35
50-60 years old (including 50 excluding 60) 2
Aged 60 and above 0
(3).Explanation of Situation
□Applicable √Not Applicable
(4).Reasons for significant changes in R&D personnel composition and their impact on the
Company's future development
□Applicable √Not Applicable
5. Cash Flow
√Applicable □Not Applicable
Item Amount for the Amount in the same Change proportion
current period period of the (%)
previous year
Net cash flows from
3142633749202645879755.08
operating activities
Net cash flows from
-236659327-62787587162.31
investing activities
Net cash flows from
-2748868697-1348348430-103.87
financing activities
Explanation:
Compared with the previous period the net cash flow from operating activities increased
mainly due to the decrease in operating receivables and the increase in operating payables
in the current period.Compared with the previous period the net cash flow generated from investing activities
increased mainly due to the decrease in investment in new M&A projects during the period.Compared with the previous period the net cash flow generated from financing activities
declined mainly due to the increase in borrowings and dividends during the period.(ii) Description of significant changes in profits caused by non-primary business
√Applicable □Not Applicable
During the period the recoverable amount of the cash-generating unit where some goodwill
resides was less than its book value and the Company recognized a goodwill impairment
loss of RMB 150 million. During the current period the recoverable amount of the land
possessed by the Company was lower than the book value and the Company made an asset
impairment provision of RMB 88 million.(iii) Analysis of assets and liabilities
√Applicable □Not Applicable
44 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
1. Assets and liabilities
Unit: RMB Currency: RMB
Ratio of the Ratio of the Change ratio of
closing closing the closing
Closing amount for Closing amount amount for the amount for the
Name of Explanation
amount for the the current for the previous previous current period
project of Situation
current period period to the period period to the compared with
total assets total assets the previous
(%) (%) period (%)
Mainly due to
the decrease
Accounts
in settlement
receivable 5612871 0.03 15269288 0.07 -63.24
via bank
financing
acceptance
bills.Mainly due to
the disposal
of Huairen
Other non- Great
current 6963496 0.04 12093150 0.06 -42.42 Health's
financial assets investment
during the
current
period.Mainly due to
the
conversion of
construction
Construction
1734300 0.01 107795924 0.51 -98.39 in progress to
in progress
fixed assets
during the
current
period.Mainly due to
the decrease
in prepaid
purchase
payment and
Other non-
8530627 0.04 17051558 0.08 -49.97 software
current assets
purchase
payment
during the
current
period.Mainly due to
the decrease
Short-term
697299622 3.51 1656884090 7.87 -57.92 in bill
loans
discounting
loans.Mainly due to
the
repurchase of
Treasury stock 16935356 0.08 -100.00 restricted
shares during
the current
period.Other explanations:
None
2. Overseas assets
√Applicable □Not Applicable
45 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(1). Asset scale
Of which: Overseas assets RMB 692064 (Unit: RMB Currency: RMB) accounting for
0.01% of total assets.
(2). Related description of high proportion of overseas assets
□Applicable √Not Applicable
3. Restrictions on the main assets by the end of the reporting period
√Applicable □Not Applicable
See "Section VIII Financial Report" "VII. Notes to Consolidated Financial Statement
Items" "31. Assets with Restricted Ownership or Use Rights".
4. Other Explanations
□Applicable √Not Applicable
(iv) Analysis of Industry Operating Information
√Applicable □Not Applicable
See Section III "Discussion and Analysis by the Management" Subsection II "II. Industry
Situation during the Reporting Period" of this Report.
46 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Analysis of Retail Industry Operating Information
1. Distribution of Opened Direct Stores at the End of the Reporting Period
√Applicable □Not Applicable
Self-Owned Property Stores Leased Property Stores
Region Operating Format Number of Floor Area Number of Floor Area
Stores (10000m2) Stores (10000m2)
North China Pharmaceutical 0 0 1467 21.11
Retail
East China Pharmaceutical 0 0 2798 42
Retail
South China Pharmaceutical 0 0 544 7.46
Retail
Central China Pharmaceutical 10 0.32 3463 44.37
Retail
Northwest Pharmaceutical 0 0 1450 19.36
China Retail
Total 10 0.32 9722 134.30
2. Other Explanations
√Applicable □Not Applicable
(1) Operating Efficiency of Directly-Operated Stores
As of December 31 2025 the Company had a total of 14975 stores including 9732
directly-operated stores with operating efficiency as follows:
Number of stores Store operating area Average daily sales per
Store type (by
(stores) (m2) square meter
daily
(Tax included
sales amount)
RMB/m2)
Flagship store 97 41110 212
Large store 256 47018 111
Small-medium 9379 921400 38
mature store
Total 9732 1009527 48
Note: Compared with the end of 2024 and the end of 2025 Q3 the Company's average revenue per
available square meter increased by RMB 1/m2 indicating that the operating quality of the Company's
stores gradually improved as a whole.
(2) Store changes
At the end of 2025 the Company had 14975 stores including 9732 direct-sale stores
and 5243 franchised stores. In 2025 the Company opened 875 new stores including 84
direct-sale stores and 791 franchised stores. In 2025 based on market changes the Company
quickly adjusted its pace optimized its layout through relocation and closure of loss-making
stores and enhanced its overall profitability.In 2026 the Company will effectively renew the leases of all expired stores and
maintain stable lease renewability and further promote lease cost control work. While
ensuring the steady progress of lease renewal work based on the actual business conditions
of each store a one-store-one-policy approach will be adopted to reduce costs and improve
efficiency optimize the store cost structure and enhance overall store profitability.The overall distribution of directly-operated stores during the reporting period is as
follows:
47 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
2025
Region
Net increase (stores) End of period (stores)
Central China -59 3473
South China -5 544
North China -46 1467
East China -103 2798
Northwest China -36 1450
Total -249 9732
(3) Situation of directly-operated stores obtaining medical insurance qualification
During the reporting period 8994 of the Company's directly-operated stores obtained
various "Designated Retail Pharmacy for Medical Insurance" qualifications accounting for
92.42% of the total number of direct stores.
Number of stores with
Total Number of Proportion of total
Region various medical insurance
Stores stores
qualifications
Central China 3473 3308 95.25%
South China 544 540 99.26%
North China 1467 1252 85.34%
East China 2798 2739 97.89%
Northwest China 1450 1155 79.66%
Total 9732 8994 92.42%
(4) Category structure at retail terminals
Chinese and Western patent medicines are the main products merchandised by the
Company accounting for 81.03% of the Company's retail terminal revenue. The sales
proportion of various categories of the Company is stable and there have been no
significant changes in the product structure.Retail category 2023 2024 2025
Chinese and western 78.56% 79.10% 81.03%
patent medicine
Chinese medicine 7.40% 7.62% 7.24%
Non-pharmaceuticals 14.04% 13.28% 11.73%
(5) Situation of store pharmaceutical operation permits and GSP certification
According to the Drug Administration Law of the People's Republic of China and other
relevant regulations the qualification certificates involved in the daily operations of the
Company its subsidiaries and stores mainly include Pharmaceutical Operation Permit Food
Operation Permit Medical Device Operation Permit etc.As of the end of the reporting period all stores opened by the Company had possessed
a Pharmaceutical Operation Permit. The Company has always attached importance to
business qualification management. According to the provisions of applicable laws and
regulations major business qualifications have been renewed or extended in a timely manner.
48 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(v) Analysis on investments
Overall analysis on external equity investments
√Applicable □Not Applicable
During the reporting period the Company and its subsidiaries were involved in 1 acquisition project with an acquisition amount of RMB 385
million. Details are as follows:
1. In January 2025 the Company signed an Equity Transfer Agreement with the shareholders of Hunan LBX Huairen Pharmacy Chain Co.
Ltd. to acquire a 20% stake in Hunan LBX Huairen Pharmacy Chain Co. Ltd. for an acquisition consideration of RMB 385 million. The
transaction was closed in June 2025.
1、 Significant equity investment
□Applicable √Not Applicable
2、 Significant Non-Equity Investments
□Applicable √Not Applicable
3、 Financial Assets Measured at Fair Value
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Profit or loss Accumulated
Impairment Amount
from changes changes in fair Sales/repurchas
Opening provided for purchased for Closing
Asset category in fair value for value e for the Other changes
amount the current the current balance
the current recognized in current period
period period
period equity
Others 35308123 35308123
Others 5774109 5774109
Others 6319041 644455 6963496
Others 460000 460000
Others 109600 109600
Total 47970873 644455 5883709 42731619
49 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Investment in securities
□Applicable √Not Applicable
Explanation of investment in securities
□Applicable √Not Applicable
Investment in private equity funds
□Applicable √Not Applicable
Investment in derivatives
□Applicable √Not Applicable
4、 Specific Progress of Major Asset Restructuring and Integration during the Reporting Period
□Applicable √Not Applicable
(vi) Sale of major assets and equity
□Applicable √Not Applicable
(vii) Analysis of major companies where the Company is a controlling shareholder or holds shares
√Applicable □Not Applicable
Major subsidiaries and shareholding companies that affect the Company's net profit by more than 10%
√Applicable □Not Applicable
50 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Unit: RMB Currency: RMB
Registered Operating
Company name Company type Main business Total assets Net assets Operating profit Net profit
capital income
Guangxi Pharmaceutical
Subsidiary 5000000 640255931 139996814 1015403707 29294396 28815839
Company Retail
Shaanxi Pharmaceutical
Subsidiary 6000000 957105860 217841811 1706368505 118853351 97331804
Company Retail
Forworld Pharmaceutical
Subsidiary 87000000 5342158843 638388497 7690030462 270868266 219485493
Company Wholesale
Tongliao Pharmaceutical
Subsidiary 50000000 592685090 239642037 1234871638 98362451 85741440
Zeqiang Retail
Lanzhou Pharmaceutical
Subsidiary 30000000 1003684360 351356572 1503336567 63194191 55245701
Huirentang Retail
Pharmaceutical
Hunan Huairen Subsidiary 127000000 1608229886 735294118 1745468319 156703277 120580536
Retail
Acquisition and disposal of subsidiaries during the reporting period
□Applicable √Not Applicable
Other Explanations
□Applicable √Not Applicable
(viii) Structured entities controlled by the Company
□Applicable √Not Applicable
51 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
VI.Discussion and Analysis on the Company's Future Development
(i)Industry Landscape and Trends
√Applicable □Not Applicable
1. Population Aging and Economic Development Drive Growth in the Pharmaceutical
Retail Industry
According to the National Strategy Research Report on Coping with Population Aging
released by the Office of the National Working Commission on Aging the medical expenses
of people aged 65 and above are about 3-5 times those of people under 65 and the medical
expenses of people aged 80 and above are about 13-15 times those of people aged 65-80.Driven by the gradual deepening of China's population aging the Chinese pharmaceutical
market maintains rapid growth. At the same time with China's economic development and
the upgrading of resident consumption structure people's emphasis on health management is
increasing daily which also provides momentum for the development of the pharmaceutical
retail industry.
2. Separation of Dispensing from Prescription (SDP) Drives Prescription Outflow
In recent years the state has continuously introduced policies to promote prescription
outflow. Various regions have also actively promoted electronic prescription services and
accelerated the construction of prescription circulation platforms. Especially in February
2023 the National Healthcare Security Administration issued the Notice on Further
Improving the Management of Including Designated Retail Pharmacies in Outpatient
Pooling Management actively supporting designated retail pharmacies to open outpatient
pooling services substantially promoting the Separation of Dispensing from Prescription
(SDP) and prescription circulation. Prescription outflow from hospitals is likely to become a
long-term trend under the strong push of policies. As the main terminal for undertaking
prescription outflow retail pharmacies are expected to receive continuous benefits.
3. Continuous Increase in Industry Concentration
As the supervision of China's pharmaceutical retail industry gradually becomes stricter
a batch of small and medium-sized pharmacies will gradually exit the market or join the camp
of large chain pharmacies. The inclusion of designated pharmacies in outpatient pooling
management puts forward higher requirements for retail pharmacies in terms of digital
systems licensed pharmacists pharmaceutical services and operational compliance. The
advantages of large chain pharmacies in standardized operation and market scale are
increasingly prominent and industry concentration will further increase.
4. Integrated Development of Online and Offline
52 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Offline chain pharmacies possess advantages such as immediate drug purchase and
professional pharmaceutical services which may be synergistic with online business. The
store network of chain pharmacies becomes the "capillary" of health services and penetrates
deep into the community grassroots better meeting the timeliness and professionalism needs
of major groups such as the elderly and chronic disease patients for medication. At the same
time chain pharmacies rapidly develop online business through self-construction
cooperation etc. using integrated online and offline service solutions to facilitate drug
purchase while providing customers with more value-added services and enhancing customer
stickiness. The integrated development of online and offline will become the future trend for
Chinese pharmacies.
5. Digital Intelligence Transformation
Based on the upgrading needs of consumers for convenient drug purchase personalized
health services and medication safety the digital intelligence of pharmacies is not only a
technological upgrade but also a restructuring of industry competitive barriers. Digital
intelligence empowers through technology (AI big data Internet of Things etc.) service
innovation and ecological integration. With the deepening application of AI technology and
policy support digital intelligence will become the core engine for the sustainable
development of the pharmacy industry.
6. Diversification Trend
As consumer demand shifts from simple drug purchase to comprehensive services such
as health management chronic disease intervention and personalized services diversified
development is not only a development strategy but also a key path for industry upgrading
and development. Nine ministries including the Ministry of Commerce issued the Opinions
on Promoting the High-Quality Development of the Pharmaceutical Retail Industry to
encourage chain pharmacies to enrich the drug retail format and optimize the product service
experience. Retail pharmacies continue to explore diversified development transformation
paths breaking homogeneous competition through differentiated services by means of non-
pharmaceutical product line expansion service scenario innovation cross-format integration
and technology-empowered operations. In the future the advantages of chain pharmacies
with diversified development capabilities will become increasingly prominent and industry
concentration will gather towards leading enterprises.(ii)Company's development strategy
√Applicable □Not Applicable
53 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
The Company focuses on seven major strategies to build a technology-driven health
service platform. Firstly technology-driven empowering enterprise operations with digital
intelligence and AI technology. Secondly seizing the opportunity of prescription outflow
capturing the blue ocean market of prescription drugs. Thirdly embracing new retail
creating a closed-loop ecosystem of "product + service + customer group". Fourthly
advancing into new rural areas building a three-dimensional expansion network. Fifthly
expanding health and social spaces for the elderly. Sixthly cultivating private brands.Seventhly exploring pharmacy diversification.(iii)Business Plan
√Applicable □Not Applicable
1. Technology-Driven
In 2026 the Company will continue to promote the application and implementation of
AI closely combine business scenarios and empower innovation with AI. Integrate AI into
all aspects of store operation supply chain optimization customer service upgrade and
management efficiency improvement. For example with the aid of AI we can improve the
professional service capabilities of store clerks and create a more intimate service experience
for customers. We will further strengthen our refined operation capabilities of the supply
chain and carry out demand forecast category optimization and precise inventory control
based on consumer demand. We will serve the Group's strategy of "technology-driven health
service platform" in an all-round manner..
2. Seizing the Opportunity of Prescription Outflow
In 2026 the Company kept on closely monitoring policies related to prescription
outflow and outpatient pooling and actively liaising with local medical insurance bureaus.Relying on the Company's resources such as nationally unified high-standard dual-channel
stores DTP stores outpatient chronic and special disease stores and the advantage of a
relatively high licensed pharmacist staffing rate in the industry the Company actively
coordinated with prescription circulation platforms successively launched in various regions
to undertake more outflow prescriptions. In addition the Company will actively cooperate
with innovative drug companies to further enhance the accessibility of innovative drugs.
3. Embracing New Retail
In 2026 the Company will utilize digitalization to further enhance data collation and
integration capabilities seize the diversified demands of online pharmaceutical consumption
create differentiated advantages compared to offline sales methods and improve customer
consumption experience. The Company continuously improves member service levels
54 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
continuously analyzes the outcome data of the entire marketing chain identifies factors
influencing user behavior optimizes marketing strategies and thereby increasing the
proportion of member sales and repurchase rates.
4. Advancing into New Rural Areas
In 2026 the Company will continue to focus on increasing market share in
advantageous provinces while vigorously developing small-town and rural markets because
the new rural market has advantages such as good growth potential less impact from policies
and low costs. The Company will continue to expand its network downward through self-
construction franchising and alliances creating a large pharmaceutical retail ecosystem
uniting broader local resources leveraging store management advantages implementing the
"New Rural" strategy and further enhancing its scale.
5. Expanding Health and Social Spaces for the Elderly
In 2026 the Company will continue to seize the community health traffic entrance
rationally layout community stores equip stores with chronic disease testing equipment
provide professional services such as medication consultation and health consultation
strengthen the medical attribute enhance the stickiness of elderly customers and become a
trusted professional health management consultant nearby. In addition the Company will
expand the service boundaries of pharmacies build warm community health stations open
more than 10000 stores across the country into community health stations and social spaces
and integrate love into health services.
6. Cultivating Private Brands
In 2026 the Company will utilize advanced Internet of Things technology to create
private brands and intelligent products in the consumer healthcare field focusing on
scenarios such as "health management health preservation health exercise" opening up new
category markets for the channel. By leveraging the Company's "online + offline"
omnichannel advantages discovering customer needs cultivating high-quality private brand
products the Company aims to build popular domestic health brands favored by the
public. Besides our quality control team will strictly screen cooperative manufacturers and
monitor the stability of products throughout the process so as to truly realize the high cost
performance advantage of its own brands with high quality and comparable prices.
7. Exploring Pharmacy Diversification
In 2026 the Company will focus on the health needs of all people empower the
diversified development of pharmacies with digital and intelligent platforms and foster
55 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
community healthy life stewards. Relying on its own brand department it will develop cost-
effective products deploy nutrition and health care health for the silver haired healthcare
equipment and functional beauty tracks and continue to expand non-pharmaceutical business
to develop differentiated competitive advantages.(iv)Potential Risks
√Applicable □Not Applicable
1. Industry Policy Risk
Potential Risk:
The pharmaceutical retail industry is an important industry related to national health.As China's medical reform continues to deepen industry regulation is becoming increasingly
strict and standardized and industry policies are successively introduced. If the Company
cannot make corresponding adjustments to its operations and management in a timely manner
according to policy changes it may adversely affect the Company's development.Company's Countermeasures:
The Company will closely monitor policies issued by relevant departments. By
introducing policy and industry experts strengthening the Company's interpretation and
understanding of policies and the industry and making forward-looking layouts the
Company will actively innovate based on legal compliance proactively seek change and
grasp industry changes.
2. Market Competition Risk
Potential Risk:
China's pharmaceutical retail industry is currently in a period of gradually increasing
concentration and chain rate. Leading pharmacy enterprises are accelerating expansion and
industry competition is intensifying. In 2025 it was the first time that the number of
pharmacies nationwide showed negative growth and small and medium-sized pharmacies
entered an era of closing.Company's Countermeasures:
The Company will perform refined management to improve the quality of store
operation maintain the basic market of old stores and expand market share. Firstly the
Company will continue to promote digital transformation and refined operational
management to enhance the quality and efficiency of its operations. Secondly the Company
enhances the professionalism of stores and employees to provide customers with specialized
and personalized chronic disease management services thereby increasing competitiveness.
56 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Thirdly the Company will utilize the advantages of its offline store layout and integrate
online and offline development to enhance its omnichannel service capabilities.
3. Risk of Acquired Store Operations Not Meeting Expectations
Potential Risk:
The Company accelerates its development through both organic growth and external
expansion. The operating performance of acquired stores is influenced by multiple factors
such as the policy environment market demand and integration status posing a risk of
profitability not meeting expectations.Company's Countermeasures:
The key to preventing acquired store operations from falling short of expectations lies
in improving the quality of acquisition targets. Firstly the Company adheres to peer M&A
in selecting acquisition targets. Secondly the Company has established a comprehensive
management system covering both pre-acquisition and post-acquisition phases to ensure
controllable risks.Before the acquisition the Company's experienced investment team combined with
third-party intermediary resources conducts thorough due diligence on acquisition targets to
control valuation risks. After the acquisition leveraging the Company's strong integration
capabilities the acquired targets are rapidly empowered in terms of product structure
procurement costs capital efficiency operational standards talent echelon and work
processes; operating data is closely monitored and the performance achievement of target
companies is tracked in real-time.Additionally the Company commissions a third party to conduct strict goodwill
impairment tests annually according to relevant requirements. Based on the results of the
goodwill impairment tests the operating departments continuously follow up on performance
improvement constantly improve refined management according to local conditions and
ensure the Company's sound goodwill.
4. Risk of Insufficient Talent Reserves due to Company Scale Expansion
Potential Risk:
As the Company's operating scale continues to expand the demand for high-level
professional talents in pharmacy marketing logistics and information technology will
continuously increase arousing higher demands for the business and service quality of
frontline employees. If talent cultivation and introduction fail to adapt to the Company's
development needs it might adversely affect the Company's expansion.
57 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Company's Countermeasures:
On the one hand by integrating internal and external training resources the Company
implements a complete training process for talents at all positions both online and offline
strengthens the integrated training and practice learning system and consolidates the internal
talent echelon. On the other hand the Company achieves full coverage of employees at all
levels through "short medium long-term" incentive tools increases employee income
improves the timeliness of salary incentives stimulates employee motivation attracts and
retains external outstanding talents to join through an excellent corporate culture.(v)Others
□Applicable √Not Applicable
VII.Explanation of situations and reasons where the Company did not disclose information
according to standard provisions due to inapplicability of standard provisions or special
reasons such as state secrets or trade secrets
□Applicable √Not Applicable
58 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Section IV Corporate Governance Environmental and Social
I.Explanation of Corporate Governance Related Matters
√Applicable □Not Applicable
During the reporting period the Company strictly followed the requirements of the
Company Law Securities Law Code of Corporate Governance for Listed Companies Rules
Governing the Listing of Stocks on Shanghai Stock Exchange and relevant requirements of
the CSRC and SSE. Combined with the Company's actual situation it established and
improved internal control systems promoted standardized operations and safeguarded the
legitimate rights and interests of the Company and shareholders.
1. General shareholders' meetings. During the reporting period the Company held two
shareholders' meetings. The convening holding and voting procedures of shareholders'
meetings were standardized to ensure that all shareholders especially minority shareholders
enjoyed equal status and fully exercised their rights. All shareholders' meetings were held by
a combination of on-site and online voting. When the shareholders' meetings considered
major matters affecting the interests of small and medium-sized investors the Company
separately counted the voting of small and medium-sized investors and disclosed them in the
announcement of the resolutions of the general shareholders' meetings. Lawyers attended the
meetings witnessed them on site and issued legal opinions which further guaranteed the
legality and validity of the meetings.
2. Directors and the Board of Directors. The Board of Directors of the Company consists
of 9 Directors including 5 non-independent directors 1 employee director and 3 independent
directors. The Board of Directors has established three special committees namely the
"Audit Committee" the "Nomination Remuneration and Appraisal Committee" and the
"Strategy and ESG Committee" with strict division of labor. The meetings are convened in
accordance with the rules of procedure. These committees give full play to their professional
roles and provide professional advice and reference for the decision-making by the Board of
Directors. During the reporting period the Board of Directors held a total of 6 meetings and
all meetings were convened and held in compliance with the requirements of relevant laws
and regulations. They were legal and valid.
3. Management. The officers of the Company who bear clear responsibilities are able
to perform their duties in strict accordance with various management systems such as the
Articles of Association and the Working Rules of the President. Being fully responsible for
the operations management of the Company they organize the implementation of the
59 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Company's annual business plans draw up basic management systems of the Company
formulate the specific rules and regulations of the Company etc. with due diligence and
earnestly implement and execute the resolutions of the Board of Directors.
4. Controlling shareholder and the Company. During the reporting period the Company
and its controlling shareholder were independent of each other in terms of personnel
institutions finance business and assets with no situation of horizontal competition.Related-party transactions between the Company and the controlling shareholder were fair
and reasonable. The controlling shareholder exercised its investor rights normally through
shareholders' general meetings without directly or indirectly interfering in the Company's
decision-making and operating activities beyond the scope of the shareholders' general
meetings. During the reporting period there was no non-operational occupation of company
funds by the controlling shareholder or its controlled related enterprises.
5. Information disclosure. The Company paid much attention to and actively supported
information disclosure work. During the reporting period the Company consciously fulfilled
its information disclosure obligations in strict compliance with laws and regulations in all
announcements. The information disclosure was true accurate timely and complete without
false records misleading statements or material omissions. At the same time the Company
strictly implemented insider information management maintaining the principle of fair
information disclosure.Whether there are significant differences between the Company's corporate governance and
the laws administrative regulations and CSRC provisions regarding the governance of
listed companies; if there are significant differences the reasons should be explained
□Applicable √Not Applicable
II.Specific measures taken by the Company's controlling shareholder and actual controller to ensure
the independence of the Company in terms of assets personnel finance institutions business
etc. as well as solutions adopted work progress and subsequent work plans to address issues
affecting the Company's independence
√Applicable □Not Applicable
Since its establishment the Company has conducted its business operations in strict
accordance with the Company Law of the People's Republic of China the Articles of
Association and other relevant regulations gradually established and improved its corporate
governance structure achieved independence from the controlling shareholder and de facto
controller in terms of assets personnel finance organization and business and possessed
independent and complete business and independent operation capabilities.
60 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
1. Asset integrity: With clear property relations with its controlling shareholder and
actual controller the Company possesses complete and independent corporate assets. The
controlling shareholder actual controller and other enterprises controlled by the Company
did not illegally misappropriate the assets or funds of the Company or harm the interests of
the Company.
2. Personnel independence: The Company performs the appointment procedures for
directors and officers in accordance with the Company Law the Articles of Association and
other laws and regulations. All officers of the Company work full-time for the Company and
receive remuneration and do not hold any other positions other than directors and supervisors
or receive remuneration from the actual controller and other enterprises controlled by the
controller.
3. Financial independence: The Company has set up an independent financial
accounting department with independent financial accounting personnel established an
independent financial accounting system and an internal control system independently made
financial decisions independently and owned a standardized financial accounting system.Since its establishment the Company has opened a separate bank account. The controlling
shareholder actual controller and other enterprises controlled by the Company do not share
bank accounts with the Company.
4. Organizational independence: The Company has established a complete range of
independent and complete internal organizations and management organizations in line with
its actual situation defined the functions of all organizations and formulated corresponding
internal management and control systems. The Company independently exercises its
management powers and no confusion exists with the actual controller or other enterprises
controlled by it.
5. Business independence: The Company owns an independent and complete R&D
production and sales system and the ability to independently operate directly to the market.The controlling shareholder actual controller and other enterprises controlled by the
Company strictly abide by the relevant commitments to avoid horizontal competition. No
companies or enterprises other than the Company increase investments or engage in
businesses or operations that constitute substantial horizontal competitions with the
Company. No direct or indirect intervention with the Company's business operations exist.The controlling shareholder and actual controller of the Company exercise their rights
as shareholders in accordance with the law through the shareholders' meetings without
61 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
exceeding the authority of the shareholders' meetings or directly or indirectly interfering with
the business decision-making and business activities of the Company.Explanation of the chairman who also serves as president: Mr. Xie Zilong the chairman
of the Company also serves as the president. Mr. Xie Zilong as founder and actual controller
of the Company has been acting as a core leader. He has been engaged in the operations
management of the Company since the establishment of the Company. Having served as
chairman and president of the Company since April 2025 he has rich experience in
operations management industry experience and strategic judgment ability. He is familiar
with the core business of the Company industry development trends and market environment.He can coordinate the formulation and implementation of the Company's major decisions
guarantee the consistency and coherence of the Company's business strategies help the
Company cope with industry competitions and market changes and meet the actual needs of
the Company's current operations development. His rich experience and ability to perform
duties can ensure the effective performance of his dual duties. Besides Mr. Xie Zilong
always faithfully and diligently performs his duties strictly abides by laws regulations and
the Articles of Association and safeguards the interests of the Company and all shareholders.In addition the Company's sound internal checks and balances mechanism can prevent the
risk of concentration of powers and responsibilities and ensure standardized corporate
governance. The Company has clearly divided the scope of powers of the Board of Directors
and the president in the Articles of Association. The division of powers of the Board of
Directors and the president strictly follows laws regulations and regulatory requirements
combined with the Company's business characteristics and business development needs in
order to clarify powers and responsibilities and realize effective checks and balances which
can ensure scientific decision-making efficient operation and standardized governance of
the Company. This determination of powers and concurrent appointment arrangement is
conducive to the sustainable and healthy development of the Company. It is in the
fundamental interests of the Company and all shareholders.The controlling shareholder actual controllers and other entities under its control are
engaged in the same or similar business as the Company and the impact of the horizontal
competition or changes in the horizontal competition on the Company the solutions that
have been taken the progress of the solutions and the follow-up solution plans
□Applicable √Not Applicable
62 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
III.Information on Directors and Officers
(i) Shareholding Changes and Remuneration of Current and Resigned Directors and Officers during the Reporting Period
√Applicable □Not Applicable
Unit: shares
Total pre-
tax Whether
remunerati remunerati
Number of Changes in on received on is
Number of
shares held the number from the received
Start date of End date of shares held Reasons for
Full name Position Sex Age at the of shares Company from
tenure tenure at the end changes
beginning during the during the related
of the year
of the year year reporting parties of
period the
(RMB'0000 Company
)
Chairperson
Xie February February
and Male 59 0 0 0 - 216 No
Zilong 22 2024 21 2027
president
February February
Xie Jiaqi Director Female 33 0 0 0 - - No
222024212027
Zheng February February
Director Male 42 0 0 0 - - No
Jiaqi 22 2024 21 2027
February February
Li Zhen Director Male 47 0 0 0 - - No
222024212027
February February
Wu Bin Director Male 65 1893 1893 0 - 12 No
222024212027
Wu February February
Director Male 57 0 0 0 - 12 No
Lianfeng 22 2024 21 2027
February February
Xie Ziqi Director Male 48 0 0 0 - 12 No
222024212027
Ren
February February
Mingchua Director Male 65 0 0 0 - 12 No
222024212027
n
63 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Employee
November February
Tan Jian representati Male 48 0 0 0 - 56 No
282025212027
ve director
Restricted
stock
Wang Vice February 5 February
Male 56 96257 82009 -14248 repurchase - No
Zhongxin president 2026 21 2027
and
cancellation
Restricted
stock
Su Vice February February
Male 50 39650 23790 -15860 repurchase 132 No
Shiyong president 22 2024 21 2027
and
cancellation
Restricted
stock
Vice February February
Wan Xin Male 41 39650 19825 -19825 repurchase 134 No
president 22 2024 21 2027
and
cancellation
Restricted
stock
Dang Vice October 29 February
Female 44 25441 11193 -14248 repurchase 113 No
Xian president 2024 21 2027
and
cancellation
Restricted
stock
Vice October 29 February
Lin Huan Female 43 24934 10686 -14248 repurchase 118 No
president 2024 21 2027
and
cancellation
Restricted
stock
Zhang Vice February February
Male 39 31942 15971 -15971 repurchase 100 No
Wenshuai president 22 2024 21 2027
and
cancellation
Chen Vice February February Restricted
Male 46 1598 800 -798 99 No
Lishan president 22 2024 21 2027 stock
64 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
financial repurchase
controller and
cancellation
Vice
Restricted
president
stock
Feng and February February
Female 40 74626 58766 -15860 repurchase 93 No
Shini secretary of 22 2024 21 2027
and
the Board of
cancellation
Directors
Liu Director February November
Male 53 0 0 0 - 10 No
Xiaoen (outgoing) 22 2024 27 2025
Restricted
stock
President February April 29
Wang Li Female 43 98779 76627 -22152 repurchase 206 No
(outgoing) 22 2024 2025
and
cancellation
Restricted
stock
repurchase
and
Deputy
Jiang February April 11 cancellation;
president Male 33 39650 17890 -21760 125 No
Yufei 22 2024 2025 compliant
(outgoing)
transaction
half a year
after
departure
Deputy
Guo February October 10
president Male 43 0 0 0 - 130 No
Xiaowei 22 2024 2025
(outgoing)
Supervisor February November
Rao Hao Male 47 0 0 0 - 28 No
(outgoing) 22 2024 28 2025
Employee
February November
Luo Qun supervisor Female 36 0 0 0 - 28 No
222024282025
(outgoing)
Total / / / / / 474420 319450 -154970 / 1636 /
65 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Note: 1. The commencement date of the term of office is calculated from the commencement time of the current Board of Directors (or the
Board of Supervisors).
2. Mr. Tan Jian served as chairman of the Board of Supervisors of the Company from February 22 2024 to November 28 2025. Due to the
requirements of the new Company Law and other regulations the Board of Supervisors of the Company was cancelled on November 28 2025
and Mr. Tan Jian was elected as employee representative director of the Company at the Workers' and Employees' Congress on that day.
3. On February 5 2026 the Board of Directors appointed Mr. Wang Zhongxin as vice president Mr. Chen Lishan as vice president and
financial controller and Ms. Feng Shini as vice president and secretary of the Board of Directors.
4. The amount of directors' allowance reviewed by the shareholders' meeting is RMB 100000/year after tax which has been converted into the
pre-tax amount in the above table.
5. As Ms. Dang Xian and Ms. Lin Huan had served as vice presidents since October 2024 the total remuneration of directors and senior
executives in 2025 decreased as compared with the total remuneration of 2024 after adjustment.Full
Main work experience
name
Mr. Xie Zilong born in 1966 Chinese nationality member of the China National Democratic Construction Association
(CNDCA) founder of the Company is entitled to Special Government Allowance from the State Council. As a National Model
Worker nominee for the 5th National Moral Model Award (Honesty and Trustworthiness) representative of the 11th 12th and
Xie
14th National People's Congress member of the CNDCA Central Committee Vice Chairman of the CNDCA Hunan Provincial
Zilong
Committee Honorary President of the China Medical Pharmaceutical Material Association Vice President of the China
Association of Pharmaceutical Commerce President of the Hunan Provincial Pharmaceutical Circulation Industry Association he
is currently the Chairman and President of the Company.Ms. Xie Jiaqi born in 1992 Chinese nationality Bachelor's degree in Management from the University of Manchester UK
EMBA at China Europe International Business School (CEIBS). As a member of the Standing Committee of the Hunan
Federation of Industry and Commerce (General Chamber of Commerce) Executive Vice President of the Hunan Federation of
Xie Jiaqi Industry and Commerce Young Entrepreneurs Chamber of Commerce Standing Committee Member of the Hunan Youth
Federation People's Supervisor of the Hunan Provincial People's Procuratorate she currently serves as President of LBX
Pharmaceutical Group Co. Ltd. Chairman of the Hunan Influence Foundation and Director of Women & Children's Hospital of
Hunan and director of the fifth Board of Directors of the Company.Mr. Zheng Jiaqi born in 1983 Chinese nationality holds permanent residency abroad Bachelor's degree in Economics from the
Zheng
University of Manchester UK Master's degree in Finance from Lancaster University UK. He previously worked in the
Jiaqi
Investment Banking Department of China International Capital Corporation Limited. As a founding member of Primavera Capital
66 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Group he currently serves as Partner at Primavera Capital Group Director of the Company's Fifth Board of Directors.Mr. Li Zhen born in 1978 Chinese nationality EMBA from CEIBS with Master's degree in Economics from Fudan University
Bachelor's degree in Law from Fudan University previously worked at Temasek Holdings (Private) Limited Shanghai
Li Zhen
Representative Office. He currently serves as Executive Director and General Manager Head of Healthcare Investment at
Fountain Vest Partners (Sanya) Co. Ltd. Director of the Company's Fifth Board of Directors.Mr. Wu Bin born in 1960 Chinese nationality postgraduate degree Registered Senior Consultant Licensed Pharmacist recognized
as an academic successor to national veteran traditional Chinese medicine experts (third batch) by the Ministry of Personnel
Ministry of Health and State Administration of Traditional Chinese Medicine previously worked at Taiyuan Heavy Machinery
Group Co. Ltd. Shanxi Provincial Pharmaceutical Company Shanxi Provincial Pharmaceutical Administration Bureau Shanxi
Provincial Medicinal Material Company Shanxi Provincial Pharmaceutical Group Co. Ltd. and other enterprises and
administrative agencies. He formerly served as Executive Vice President of the China Association of Pharmaceutical Commerce.Wu Bin He currently serves as a member of the Expert Committee of the China Pharmaceutical Enterprise Management Association expert
reviewer for pharmaceutical circulation industry and traditional Chinese medicine projects for the Ministry of Science and
Technology and Senior Advisor to the China Medical Pharmaceutical Material Association. He concurrently serves as Vice
President and Secretary-General of Shanxi Provincial Pharmaceutical Industry Association Master's Supervisor at Shanxi
University director of Yabao Pharmaceutical Group Co. Ltd. and Shandong Keyuan Pharmaceutical Co. Ltd. independent
director of HPGC Renmintongtai Pharmaceutical Corporation and Dezhan Healthcare Company Limited. He currently serves as a
director of the Company's fifth Board of Directors.Born in 1968 Chinese nationality no permanent residency abroad Master's Degree in Engineering MBA degree previously served
Wu as Engineer at China Academy of Launch Vehicle Technology Engineer at Hewlett-Packard China Co. Ltd. General Manager of
Lianfeng the Technology Department at Jardine OneSolution (JOS) Information Technology Co. Ltd. He currently serves as Vice President
and Chief Analyst at IDC Consulting (Beijing) Co. Ltd. Independent Director of the Company's Fifth Board of Directors.Mr. Xie Ziqi born in 1977 US nationality permanent resident of the Hong Kong Special Administrative Region obtained a Master
of Science degree from Stanford University in 2000 majoring in Financial Mathematics. He previously worked as a Financial
Xie Ziqi Engineer at Moody's Vice President at Deutsche Bank etc. engaged in financial investment work for over 20 years. He currently
serves as Investment Partner at Alpha JWC Ventures PTE LTD independent director of BNP Paribas (China) director of Shanghai
Jianbei Asset Management Co. Ltd. and independent director of the Company's fifth Board of Directors.Mr. Ren Mingchuan born in 1960 Chinese nationality no permanent residency abroad Associate Professor at Fudan University
Ren
School of Management PhD in Accounting (UK) Master's degree from Xiamen University Bachelor's degree from Anhui
Mingchu
University of Finance and Economics started teaching at Zhejiang University of Technology in 1982; visited the University of Hull
an
(UK) as a visiting scholar funded by the Zhejiang University Pao Yue-Kong Foundation in 1992 later pursued a PhD degree. He
67 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
returned to China in 2000 and has been teaching at Fudan University School of Management since then. During this period visited
MIT (Sloan) twice as a visiting scholar and participated in case training at Harvard Business School. He currently serves as
independent director of Guoyuan Securities. He concurrently serves as a member of the Professional Ethics Standards Committee
of the Chinese Institute of Certified Public Accountants (CICPA). He currently serves as Independent Director of the Company's
Fifth Board of Directors.Mr. Tan Jian born in 1977 Chinese nationality Bachelor's degree in Traditional Chinese Medicine Clinical Medicine from Hunan
University of Chinese Medicine Master's degree in Business Administration from Hunan University previously worked at Aier
Eye Hospital engaged in procurement management of medical supplies. Mr. Tan Jian joined LBX Pharmacy Chain Joint Stock
Tan Jian
Company in 2008. He previously served as employee representative supervisor of the Company's third Board of Supervisors and
Chairman of the fourth and the Fifth Board of Supervisors. He currently serves as employee representative director of the fifth
Board of Directors.Wang Zhongxin born in 1969 a Chinese citizen with no permanent residency abroad and holds a Bachelor's Degree of Wuhan
University and a Master's Degree in Business Management of Hunan University. He previously served as regional manager of
Shenzhen Sanjiu Pharmaceutical Trading Co. Ltd. and general manager of Shanxi Taiyuan Kanghui Sanjiu Medicine Co. Ltd.Wang Since he joined in LBX in 2005 he has successively served as general manager of Hebei LBX Pharmacy Co. Ltd general
Zhongxi manager of Shandong LBX Pharmacy Chain Co. Ltd. general manager of Zhejiang Laobaixing Pharmacy Chain Co. Ltd.n assistant to executive president and M&A development director of the Company general manager of Anhui Baixingyuan
Pharmacy Chain Co. Ltd. general manager of the Group's Spark Business Group general manager of Ganning Theater general
manager of Xinzhong Theater etc. and special assistant to the chairman of the Company. He currently serves as vice president of
the Company.Born in 1975 Chinese nationality no permanent residency abroad Bachelor's degree he previously served as Human Resources
Development Supervisor at Midea Group Co. Ltd. Human Resources Director and President's Office Director at Guangdong
Su
Jiufeng Group Co. Ltd. Assistant President and Human Resources Director at Dongjiang Environmental Company Limited Vice
Shiyong
President at Guangdong Danzi Group Co. Ltd. Senior Management Consultant at Lulele Health Technology (Guangzhou) Co.Ltd. He currently serves as Deputy President of the Company.Born in 1984 Chinese nationality Bachelor's degree in Information Engineering from Beijing University of Posts and
Telecommunications Master's degree in Signal and Information Processing from Beijing University of Posts and
Telecommunications he has 13 years of technology development experience rich experience in managing multi-role teams. He
Wan Xin
previously served as Senior R&D Engineer at Baidu Technical Director of Business Platform at Renrenche Technical Director of
Cloud Service Business Unit at Beijing Megvii Technology Co. Ltd. Technical VP at Hetao Programming CTO at Weimiao
Business School etc. He currently serves as Deputy President of the Company.
68 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Dang Xian born in 1981 a Chinese citizen with no permanent residency abroad holds a junior college diploma. Since she joined
in the Company in 2005 she has successively served as section chief and store manager of Tianjin LBX Pharmacy operations
Dang director of Hebei LBX operations director and Beijing regional director of Tianjin LBX vice general manager of Tianjin Forworld
Xian LBX's purchasing director in North China LBX's purchasing director in Hunan and Jiangxi vice general manager of the Group's
New Retail Center marketing director of the Operation Center operations director and member operations director general manager
of the Operations Center etc. She currently serves as vice president of the Company.Lin Huan born in 1982 a Chinese citizen without overseas permanent residence holds an MBA Degree. Since he joined in the
Company in September 2001 he has successively served as store assistant of Hunan Company store manager procurement director
Lin operations director assistant to general manager commodity director executive vice general manager and general manager of
Huan Shaanxi Company general manager in Hunan-Jiangxi Region general manager of North Hunan Company general manager in
Hunan Region general manager of supply chain and general manager of the Procurement Center of the Group etc. He is currently
the vice president of the Company.Mr. Zhang Wenshuai born in 1986 Chinese nationality no permanent residency abroad Bachelor's degree in Law and Master's
Zhang degree in Constitutional and Administrative Law from Wuhan University qualified for judicial practice previously served as
Wenshua Deputy Director of the Department of Regulations and International Economic and Trade Relations of the Hunan Provincial
i Department of Commerce Public Lawyer of the Hunan Provincial Department of Commerce Hunan Director of the Strategic
Development Department of Alibaba Group. He currently serves as vice president of the Company.Mr. Chen Lishan born in 1979 Chinese nationality no permanent residency abroad Bachelor's degree in Investment Economics
from Central University of Finance and Economics Master's degree in National Economics from Central University of Finance and
Economics Master's degree in Accounting (Mpacc) from Peking University EMBA from CEIBS Senior Accountant Certified
Chen
Internal Auditor Certified Management Accountant (USA). He previously served as Finance Manager at Li Ning Co. Ltd. Deputy
Lishan
Finance Director at Yili Clean Energy Co. Ltd. Marketing Finance Director at Fujian Tianying Network Information Technology
Co. Ltd. Finance Director at Qinghai Huzhu Tianyoude Highland Barley Wine Co. Ltd. CFO at Beijing Smart Core Technology
Co. Ltd. He currently serves as the vice president and financial controller of the Company.Feng Shini born in 1985 a Chinese citizen with no permanent residence abroad holds a Master's Degree of Central South
University. She previously served as Comprehensive Service Manager of the Heavy Industry President's Office Media Supervisor
Feng of the Propaganda and Culture Department Investor Relations Manager of the Securities Department at Sany Heavy Industry Co.Shini Ltd. Deputy Director of the Board Secretary Office at Aier Eye Hospital Group Co. Ltd. etc. Having served as secretary of the
Board of Directors of the Company since 2019 she currently serves as vice president and secretary of the Board of Directors of the
Company.Liu Liu Xiaoen born in 1972 Taiwan nationality Bachelor's degree in Business Management from Fu Jen Catholic University Taiwan
69 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Xiaoen previously served as General Manager of Kang Fu Lang Man Main Store Import and Private Brand Product Manager at RT-Mart
International Ltd. Purchasing Director at Wellcome Taiwan (Dairy Farm Group Hong Kong) Chief Merchandising and Marketing
Officer at Walmart China Partner and Chief Product Officer and Head of Supply Chain at Meicai Vice President and President of
Intelligent Supply Chain Y Business Unit at JD Group. He currently serves as director of DFI Lucky Private Limited and The Dairy
Farm Company Limited. He was previously a director of the fifth Board of Directors of the Company.Wang Li born in 1982 Chinese nationality Bachelor's degree in Applied Chemistry from Beijing Normal University Master's
degree in Advertising and Marketing from the University of Leeds UK EMBA from CEIBS National Second-level Nutritionist.She previously worked at China Youth Daily Zhongqing Chuanzhi Advertising Art Co. Ltd. Dr. & Herbs Co. Ltd (UK's largest
TCM chain at the time) Eupo Group Co. Ltd (UK); joined LBX Pharmacy in 2008 has been responsible for marketing strategic
Wang Li
investment post-investment management of Spark companies human resources organizational change innovative business etc.successively served as the Company's Brand Promotion Director Marketing Director Assistant to the Chairman Director of the
Chairman's Office General Manager of the Strategic Investment Center Director of the Human Capital Center Director Executive
Vice President etc.Jiang Yufei born in 1992 Chinese nationality no permanent residency abroad Bachelor's degree in International Finance from
Shanghai University of Finance and Economics Master's degree in Business Administration from Massachusetts Institute of
Jiang
Technology previously served as Project Manager at Bain & Company (Shanghai) Head of Digital Business CEO Advisor at
Yufei
United Pipe & Steel Executive COO at Liangxian E-commerce. He previously served as the Company's vice president and chief
growth officer.Mr. Guo Xiaowei born in 1982 Chinese nationality no permanent residency abroad Bachelor's degree. It has 18 years of work
and management experience in large internet retail enterprises rich experience in supply chain management operation management
Guo platform and digital operation. He previously served as Purchasing Director Assistant General Manager of Business Unit Deputy
Xiaowei General Manager of Business Unit at Suning Appliance Group Co. Ltd. President of Air Conditioning Product Company at Suning
Commerce Group Co. Ltd. President of Home Appliance Company and Vice President of Cloud Network Wandian Group at
Suning.com Group Co. Ltd. etc. He ever served as Deputy President of the Company.Born in 1978 Chinese nationality Bachelor's degree he joined LBX Pharmacy Chain Joint Stock Company in 2008. He previously
served as Finance Director of the Company's subsidiary Henan Company Finance Director of Guangdong Company Head of the
Rao Hao
Company's Planning and Analysis Department Head of the Internal Control Department and Accountant and Senior Director of
the Company's Hunan War Zone. He ever served as Supervisor of the Company's Fifth Board of Supervisors.Ms. Luo Qun born in 1989 Chinese nationality Bachelor's degree joined LBX Pharmacy Chain Joint Stock Company in 2012.Luo Qun She previously served as Data Analysis Specialist Product Analysis Manager. She currently serves as Data Product Expert and
ever served as Employee Supervisor of the Company's Fifth Board of Supervisors.
70 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Other information
□Applicable √Not Applicable
71 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(ii) Incumbency of current and outgoing directors and officers during the reporting period
1. Incumbency in the shareholder entity
√Applicable □Not Applicable
Position held in
Name of the Name of the Start date of End date of
the shareholder
office holder shareholder entity tenure tenure
entity
LBX Pharmaceutical Executive
Xie Zilong - -
Group Co. Ltd. director
LBX Pharmaceutical
Xie Jiaqi President - -
Group Co. Ltd.Explanation of
Positions Held
None
in Shareholder
Entities
2. Incumbency in other companies
√Applicable □Not Applicable
Name of the Names of other Positions held in Start date of End date of
office holder entities other entities tenure tenure
Women & Children's
Xie Zilong Hospital of Hunan Director
Co. Ltd.Executive
Hunan Tianyi
Director &
Xie Zilong Venture Capital Co.General
Ltd.Manager
Changsha Rongying
Investment Executive
Xie Zilong
Partnership (Limited Partner
Partnership)
Executive
Hunan Xie Zilong
Director &
Xie Zilong Photography Museum
General
Co. Ltd.Manager
Hunan Mingyuan Bee
Xie Zilong Director
Industry Co. Ltd.Hunan Mingyuan Bee
Xie Zilong Director
Technology Co. Ltd.Hunan Hongjiang
Ancient Commercial
Xie Zilong Town Cultural Director
Tourism Industry
Investment Co. Ltd.Hunan Longping Tea
Xie Zilong Industry High-Tech Supervisor
Co. Ltd.Xie Jiaqi LBX Pharmaceutical President
72 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Group Co. Ltd.Hunan Xie Zilong Executive
Xie Jiaqi Photography Museum Director
Co. Ltd. Chairman
Women & Children's
Xie Jiaqi Hospital of Hunan Director
Co. Ltd.Changsha Xie Gallery Executive
Cultural Director &
Xie Jiaqi
Communication Co. General
Ltd. Manager
Hunan Jiusen Ritong
Xie Jiaqi Supervisor
Trading Co. Ltd.Hunan Influence
Xie Jiaqi Vice chairman
Foundation
Primavera Capital
Zheng Jiaqi Partner
Group
Zheng Jiaqi Flame SPV Limited Director
Flame Venture
Zheng Jiaqi Director
Limited
Flash (Hong Kong)
Zheng Jiaqi Director
Limited
Zheng Jiaqi Flash Capital Limited Director
Flash Venture
Zheng Jiaqi Director
Limited
Zheng Jiaqi Halide Limited Director
Zheng Jiaqi Halide SPV Limited Director
Hong Kong Asia
Zheng Jiaqi Medical Holding Director
Limited
Iovate Health
Zheng Jiaqi Sciences International Director
Inc.Iovate Health
Zheng Jiaqi Director
Sciences U.K. Inc.Iovate Health
Zheng Jiaqi Director
Sciences U.S.A. Inc.Janecox Investment
Zheng Jiaqi Director
IVHK Limited
Northern Innovations
Zheng Jiaqi Director
Holding Corp.Xiwang Iovate
Zheng Jiaqi Holdings Company Director
Limited
Beijing Iovate Sports
Nutrition Health
Zheng Jiaqi Director
Management Co.Ltd.Zheng Jiaqi Beijing Iovate Sports Director
73 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Nutrition Tech Co.Ltd.King of West Food
Zheng Jiaqi Director
(Qingdao) Co. Ltd.Jenscare Scientific
Zheng Jiaqi Director
Co. Ltd.Beijing Avistone
Pharmaceuticals
Zheng Jiaqi Director
Biotechnology Co.Ltd.FountainVest Partners Chairman
Li Zhen
(Shanghai) Co. Ltd. general manager
Executive
FountainVest Partners Director &
Li Zhen
(Sanya) Co. Ltd. General
Manager
FountainVest Partners Executive
Li Zhen
(Shenzhen) Co. Ltd. director
Shanghai Fanglang Executive
Enterprise Director &
Li Zhen
Management Limited General
Liability Company Manager
Chaoju Eye Care Non-executive
Li Zhen
Holdings Limited Director
Xiamen Chaoju
Li Zhen Medical Technology Director
Group Co. Ltd.Xiamen Chaoju
Hospital Management
Li Zhen Director
Development Co.Ltd.Chaoju Medical
Li Zhen Director
Technology Co. Ltd.Xiamen Chaoju Eye
Optometry
Li Zhen Technology Director
Development Co.Ltd.Shanghai Kezhen
Li Zhen Business Consulting Supervisor
Co. Ltd.Shanxi
Pharmaceutical
Group Nongtai
Wu Bin Traditional Chinese Director
Medicine Technology
Development Co.Ltd.Wu Bin Dezhan Great Health independent
74 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Co. Ltd. directors
Zhejiang Wecome
independent
Wu Bin Pharmaceutical
directors
Company Limited
Yabao
Wu Bin Pharmaceutical Director
Group Co. Ltd.Shandong Keyuan
Wu Bin Pharmaceutical Co. Director
Ltd.IDC Consulting Vice President
Wu Lianfeng
(Beijing) Ltd. Chief Analyst
Alpha JWC Ventures Investment
Xie Ziqi
PTE LTD Partner
independent
Xie Ziqi BNP Paribas (China)
directors
Funding Societies
Xie Ziqi Director
PTE LTD
Shanghai Jianbei
Executive
Xie Ziqi Asset Management
director
Co. Ltd.Guoyuan Securities independent
Ren Mingchuan
Co. Ltd. directors
Shanghai Cailian
independent
Ren Mingchuan Press Technology
directors
Co. Ltd.Wanxiang
independent
Ren Mingchuan Technology Group
directors
Co. Ltd.Women & Children's
Tan Jian Hospital of Hunan Supervisor
Co. Ltd.Beijing Tong Ren
Tang Hunan
Chen Lishan Director
Pharmaceutical Co.Ltd.Feng Shini Hunan Director
Pharmaceutical
Group Co. Ltd.Guangzhou Xincheng
Feng Shini Information Director
Technology Co. Ltd.Livi Holdings Non-executive
Liu Xiaoen
Limited Director
Non-executive
Liu Xiaoen Livi Bank Limited
Director
Hayselton Enterprises
Liu Xiaoen Director
Limited
Liu Xiaoen The Dairy Farm Director
75 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Company Limited
San Miu Supermarket
Liu Xiaoen Director
Limited
San Son Cheong
Commercial and
Liu Xiaoen Director
Industrial Company
Limited
Robinsons Retail
Liu Xiaoen Director
HoldingsInc.Cold Storage
Liu Xiaoen Singapore(1983) Pte Director
Ltd
DFI Lucky Private
Liu Xiaoen Director
Limited
Diabetic Kitchen
Co-founder
Wang Li (Hangzhou) Health
CEO director
Food Co. Ltd.Explanation of
positions held in None
other entities
(iii) Remuneration of Directors and Officers
√Applicable □Not Applicable
For directors of the Fifth Board of Directors not employed by
the Company Pharmaceutical Group Janstar Investment or its
actual controller remuneration is paid annually based on the
determined remuneration basis and agreed amount considering
the director's appointment time. The remuneration of directors
Decision-making
and officers employed by the Company is calculated by the
procedures for
Company's HR department based on the determined basis and
remuneration of directors
submitted to the Nomination Remuneration and Appraisal
and officers
Committee of the Board of Directors for review according to
the Management Measures for Remuneration of the Company's
Officers. The remuneration plan for directors and officers is
approved by the shareholders' general meeting after being
passed by the Board of Directors.Whether a director avoids
discussing his/her own
remuneration matters at Yes
the meeting of the Board of
Directors
Specific circumstances
that the Remuneration and On April 22 2026 the ninth meeting of the Fifth Board of
Appraisal Committee or Directors' Nomination Remuneration and Appraisal
special meetings of Committee reviewed and approved the Proposal on the Total
independent directors Remuneration of the Company's Directors Supervisors and
expressed opinions on Officers for 2025 agreeing to submit this proposal to the Board
remuneration matters for of Directors for deliberation.directors and officers
76 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
The remuneration for directors of the Fifth Board of Directors
not employed by the Company Pharmaceutical Group Janstar
Investment or its actual controller company is based on the
Basis for determining the allowance standards for some directors reviewed and approved
remuneration of directors by the first meeting of the Fifth Board of Directors and the 2023
and officers Annual General Meeting. The remuneration for directors
supervisors and offiers employed internally by the Company is
determined by the Management Measures for Remuneration of
the Company's Officers.See "(I) Shareholding Changes and Remuneration of Current
Actual payment of
and Departing Directors and Officers during the Reporting
remuneration to directors
Period" in this Section "III. Information on Directors and
and officers
Officers".Total remuneration
actually received by all
RMB 15.8 million (excluding supervisors)
directors and officers at the
end of the reporting period
According to the regulations of the Company the appraisal
shall not apply to directors who only receive allowances and
remunerations in the capacity of directors and directors who do
not receive such allowances and remunerations. The
Basis and completion of
Nomination Remuneration and Appraisal Committee of the
appraisal on actual
Board of Directors of the Company is responsible for
remuneration received by
appraising the remunerations of the Company's directors and
all directors and officers at
officers mainly based on the Company's performance job
the end of the reporting
responsibilities and satisfaction appraisal for the year. The
period
Remuneration and Performance Department of the Human
Capital Center of the Company is responsible for the specific
implementation and the Treasury Department of the Company
organizes the distribution.As at the end of the reporting period the Company had not
made deferred payment arrangements for directors who only
received allowances in the capacity of directors or deferred
payment arrangements for prepayment + settlement of annual
Deferred payment performance bonuses for directors and officers whose
arrangements for the remunerations were paid by the Company. During the reporting
remuneration actually period the annual performance bonuses was prepaid in part
received by all directors before the Spring Festival of the following year. The balance
and officers at the end of was liquidated and paid after the annual audit report for the
the reporting period following year was issued and the performance appraisal
results were finally approved. At the end of the reporting
period the relevant remunerations payable and unpaid had been
fully accrued in accordance with the Accounting Standards for
Business Enterprises.Payment suspension and During the reporting period no payment suspension and
recovery for the recovery occurred to the directors of the Company who
remuneration actually received allowances in the capacity of directors. The
received by all directors remunerations of some officers were suspended from payment
and officers at the end of but were not recovered. When the officers resigned the
the reporting period remuneration settlement and the departure audit results subject
77 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
to coordinated management and the relevant remuneration
payment would be suspended until the audit conclusion was
issued.Note: As Ms. Dang Xian and Ms. Lin Huan had served as vice presidents since October
2024 the total remuneration of directors and senior executives in 2025 decreased as
compared with the total remuneration of 2024 after adjustment.(iv) Changes in the Company's Directors and Officers
√Applicable □Not Applicable
Full name Position held Situation of change Reason for change
Liu Xiaoen Director Departure Personal reasons
Wang Li President Departure Personal reasons
Jiang Yufei Vice president Departure Personal reasons
Guo Xiaowei Vice president Departure Personal reasons
Chairman of the Cancellation of the
Tan Jian Departure
Board of Supervisors Board of Supervisors
Cancellation of the
Rao Hao Supervisor Departure
Board of Supervisors
Employee
Cancellation of the
Luo Qun representative Departure
Board of Supervisors
supervisor
(v) Statements of penalties imposed by securities regulators in the past three years
□Applicable √Not Applicable
(vi) Others
□Applicable √Not Applicable
IV.Performance of Duties by Directors
(i) Directors' attendance at the Board of Directors meetings and shareholders' meetings
Attendance
at
Attendance at the Board of Directors meetings
shareholder
s' meetings
Number
Wheth of
er an meetings Times
Director
indepe of the Times of Times
Full Times Whether Times of
ndent Board of of attendan of
name of absent from attendance
directo Meetings person ce by delegat
absenc meetings in at
r or not that al means ed
e person twice shareholder
should be attenda of attenda
Times in a row s' meetings
attended nce commun nce
during the ication
current
year
Xie
No 6 6 2 0 0 No 2
Zilong
Xie Jiaqi No 6 6 5 0 0 No 2
78 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Zheng
No 6 6 4 0 0 No 2
Jiaqi
Li Zhen No 6 6 4 0 0 No 2
Wu Bin No 6 6 2 0 0 No 2
Wu
Yes 6 6 4 0 0 No 2
Lianfeng
Xie Ziqi Yes 6 6 3 0 0 No 2
Ren
Mingchu Yes 6 6 2 0 0 No 2
an
Tan Jian No 1 1 1 0 0 No 0
Liu
Xiaoen
No 5 5 5 0 0 No 1
(outgoin
g)
Explanation for Not Attending Two Consecutive Board Meetings in Person
□Applicable √Not Applicable
Number of the Board of Directors meetings held
6
during the year
Of which: number of on-site meetings 0
Number of meetings held by communication 2
Number of meetings held onsite and by
4
communication
(ii) Cases where directors raise objections to relevant matters of the Company
□Applicable √Not Applicable
(iii) Others
□Applicable √Not Applicable
V.Special committees under the Board of Directors
√Applicable □Not Applicable
(i) Membership of special committees under the Board of Directors
Type of special committee Member's name
Strategy and ESG Committee Xie Zilong Zheng Jiaqi Wu Lianfeng
Audit Committee Ren Mingchuan Li Zhen Xie Ziqi Wu Lianfeng Tan Jian
Nomination Remuneration and
Wu Lianfeng Xie Jiaqi Ren Mingchuan
Evaluation Committee
(ii) The Strategy and ESG Committee held 3 meetings during the reporting period
Date of Important opinions and Other duties
Meeting contents
meeting suggestions performed
Reviewed and approved
1. Proposal on the Company's 2024
agreed to submit to the
20250429 Environmental Social and Corporate None
Company's Board of
Governance (ESG) Report
Directors for deliberation
1. Proposal on Formulating and Revising the Reviewed and approved
20250825 Internal Governance System of the Company agreed to submit to the None
1.1 Formulation of the Securities Investment Company's Board of
79 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Management System Directors for deliberation
Reviewed and approved
1. Resolution on Amendment to the Rules of
agreed to submit to the
20251028 Procedure of the Strategy and ESG None
Company's Board of
Committee of the Board of Directors
Directors for deliberation
(iii) The Audit Committee held 4 meetings during the reporting period
Date of Important opinions and Other duties
Meeting contents
meeting suggestions performed
Matters not considered:
1. Financial Work Reports for Four Quarters
20250218 of 2024 None None
2. 2024 Annual Supervisory Audit Work
Report
Matters considered: 1. Proposal on the
Company's 2024 Annual Report and Abstract
2. Proposal on the Company's 2025 First
Quarter Report
3. Proposal on the 2024 Internal Control
Evaluation Report of the Company
4. Proposal on the 2024 Annual Profit
Distribution Plan
5. Proposal on Provision for Asset
Impairment in 2024
6. Proposal on the Company's 2024 Situation
of Raised Funds Deposit and Use
7. Proposal on Using Part of Idle Raised
Funds to Temporarily Supplement Working
Capital
Reviewed and approved
8. Proposal on the Report of the Company's
agreed to submit to the
20250422 Audit Committee of the Board of Directors on None
Company's Board of
the Performance of Supervisory Duties over
Directors for deliberation
the 2024 Annual Audit Accounting Firm
9. Proposal on the Re-appointment of an
Accounting Firm by the Company
10. Proposal on the Company and its
Subsidiaries Applying for Bank
Comprehensive Credit Lines and Providing
Guarantees in 2025
11. Proposal on the Company's 2024 Audit
Committee Performance Report;
12. The Company's 2024 Annual Internal
Audit Report
Matters not considered:
1. 2024 Audit Work Report - E&Y
2. 2024 Audit Report - E&Y
3. 2025 Q1 Supervisory Audit Work Report
Matters considered:
1. Proposal on the Company's 2025 Semi-
Annual Report and Its Abstract
2. Proposal on Special Report on the 2025 Reviewed and approved
Semi-Annual Deposit and Actual Use of agreed to submit to the
20250821 None
Raised Funds Company's Board of
3. Proposal on Formulating and Revising the Directors for deliberation
Internal Governance System of the Company
3.1 Formulation of the Accounting Firm
Selection and Engagement System
80 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
3.2 Formulation of the Special System for
Preventing Fund Misappropriation by
Controlling Shareholders and Related Parties
3.3 Formulation of the Accountability System
for Significant Errors in Annual Report
Information Disclosure
3.4 Revision of the Internal Audit System
Matters not considered:
1. 2025 Interim Financial Data Report
2. 2025 Q2 Supervisory Audit Work Report
Reviewed Proposals:
1. Proposal on the Company's 2025 Third
Quarter Report
2. Proposal on the Interim Dividend
Distribution Plan for 2025
3. Proposal on Partial Amendment to the
Internal Corporate Governance System
3.1 Amendment to the Rules of Procedure for
the Audit Committee of the Board of Directors
3.2 Amendment to the Administrative
Measures for Related-party Transactions Reviewed and approved
3.3 Amendment to the Administrative agreed to submit to the
20251027 None
Measures for External Investments Company's Board of
3.4 Amendment to the Administrative Directors for deliberation
Measures for External Guarantees
3.5 Amendment to the Management System
for Raised Funds
3.6 Amendment to the Management System
for External Donations
4. Proposal on Using Part of Idle Raised Funds
to Temporarily Supplement Working Capital
Matters not considered:
1. 2025 Q3 Financial Data Report
5. 2025 Q3 Supervisory Audit Work Report
(iv) The Nomination Remuneration and Appraisal Committee held 4 meetings during the
reporting period
Date of Important opinions and Other duties
Meeting contents
meeting suggestions performed
Reviewed and approved
1. Proposal on the Resignation of the agreed to submit to the
20250411 None
Company's Officers Company's Board of
Directors for deliberation
1. Proposal on the Total Remuneration of the
Company's Directors Supervisors and Reviewed and approved
Officers for 2024 agreed to submit to the
20250429 None
2. Proposal on the President's Resignation and Company's Board of
the Chairman of the Board Concurrently Directors for deliberation
Serving as President
1. Proposal on Adjusting the Repurchase
Price of the 2022 Restricted Share Incentive Reviewed and approved
Plan agreed to submit to the
20250825 None
2. Proposal on Repurchasing and Cancelling Company's Board of
the Remaining Restricted Shares Directors for deliberation
3. Proposal on Formulating and Revising the
81 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Internal Governance System of the Company
3.1 Formulation of the Resignation
Management System for Directors and
Officers
3.2 Formulation of the Management System
for Shares Held by Directors and Officers and
Their Changes
Proposal on Revising the Rules of Reviewed and approved
Procedure for the Nomination Remuneration agreed to submit to the
20251028 None
and Appraisal Committees of the Board of Company's Board of
Directors Directors for deliberation
(v) Details of matters with objection
□Applicable √Not Applicable
VI.Statement of the risks found by the Audit Committee in the Company
□Applicable √Not Applicable
The Audit Committee had no objections to the supervision matters during the reporting
period.VII.Employees of the parent company and main subsidiaries at the end of the reporting period
(i) Employee information
Number of incumbent employees of the parent
7685
company
Number of incumbent employees of the main
29207
subsidiaries
Total number of incumbent employees 36892
Number of outgoing and retired employees for
whom the parent company and the subsidiaries bear 0
the expenses
Specialty
Specialty category Number by professional composition
Production personnel 172
Sales personnel 31144
Technicians 473
Financial personnel 418
Administrative staff 3673
Others 1012
Total 36892
Educational attainment
Category of educational attainment Number (People)
Master's Degree or Above 154
Bachelor's Degree 6598
Associate Degree 16165
College and below 13975
Total 36892
(ii) Remuneration policy
√Applicable □Not Applicable
82 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
The total remuneration of the Company is mainly determined based on the Company's
remuneration as well as the budget and completion of key operating indicators. Within the
total remuneration the Company implements a broadband salary system based on job
qualification certification and job grade system as well as a market-oriented incentive
mechanism. Mid-to-senior level personnel are subject to an annual salary system and their
salaries are determined based on individual capabilities and performance contribution
values combined with market salary levels. Other personnel are subject to a model
combining position and performance pay. Fixed salary is benchmarked against the industry
determined based on individual job qualification certification levels and job grades and
periodically adjusted based on individual qualification levels and market peer levels to
maintain the Company's attractiveness to talent. Employee performance salary is directly
linked to individual performance output and is also related to the overall performance
achievement of the Company and unit where they belong ensuring that while enhancing
employee motivation the Company maintains an industry-leading level of per capita
efficiency output.In terms of employee benefits the Company strictly implements national and local
laws and regulations providing employees with basic statutory benefits such as pension
insurance medical insurance unemployment insurance work-related injury insurance
maternity insurance housing provident fund paid leave etc.; at the same time the
Company also provides corresponding employees with supplementary insurance items such
as accidental injury insurance critical illness insurance etc. striving to help employees
solve their worries.(iii) Training plan
√Applicable □Not Applicable
In 2025 the Company's training work focused on support implementation of
strategies. Around the philosophy of "upholding integrity and altruism business
orientation data-driven" the Company has continuously optimized its talent cultivation
system precisely served business growth empowered employee growth and enhanced its
ability to address market changes.The Company further upgraded the digital training system upgraded the user
interfaces of the learning platform and visualized the learning paths for employees in
order to better promote the full implementation of learning projects. As of the end of 2025
all employees' cumulative learning hours had been approximately 10.73 million and there
83 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
had been over 1500 platform courses taken by over 990000 learners. The internal faculty
has been further enhanced with over 2200 teachers about 770 lecturers nearly 490
management tutors and about 960 counter instructors. 14 special learning maps were
created to match the learning needs in different positions and ranks.The training for echelon talents achieved remarkable results. The operational
procurement and merchandising echelon covered all core positions of theaters. Innovations
were made on the "Group + theater rotation" model and 60 qualified talents were
cultivated throughout the year. The successor project for B positions was continuously
carried out with over 110 trainees trained throughout the year. The staffing rate of middle
and senior B positions reached 99.5%. A total of 140 qualified managers were trained in
middle and senior management training camps which strongly supported the
implementation of the strategies.The training of frontline talents was solidly implemented. The graded "online +
offline combined training & combat" mode was fully implemented. The appointment
standards for store managers and business district managers were iterated. The standard for
urban general managers was added. The annual certification covered the frontline of the
country. Over 9000 employees participated in the certification and nearly 2500
employees were promoted. More than 190 frontline training sessions were carried out and
more than 8000 employees were trained. The "Little Poplar Project" was continuously
promoted cumulatively cultivating over 90 veterans. The training for licensed pharmacists
strengthened policy incentives. Over 1000 employees passed the examinations throughout
the year with a pass rate of 37.5% which was nearly 20% higher than the national average.For "enhancing frontline professional knowledge strengthening frontline competence
and focusing on key positions" the annual training enhanced the fitness of talents through
targeted empowerment upgrading the curriculum and tutor system etc. The programs
named "Store Manager Talk" and "Master-Apprentice Talk" were continuously carried out.Projects such as "relational transformation" was creatively implemented to create a learning
atmosphere and provide solid talent support for business growth.(iv) Labor Outsourcing
√Applicable □Not Applicable
Total Hours of Labor Outsourcing 1490707
Total remuneration paid for labor outsourcing
44661229
(Yuan)
Note: The Company performs labor outsourcing as a supplement to its employment form to
match the employment needs of auxiliary jobs such as loading unloading and warehouse
84 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
management in logistics and distribution links and supported the performance of
information technology services and online pharmacist services.VIII.Plan for profit distribution or plan for conversion of capital reserve into share capital
(i) Formulation implementation or adjustment of cash dividend policy
√Applicable □Not Applicable
To practice the development philosophy of "investor-oriented" establish a scientific
continuous and stable dividend mechanism actively reward investors and promote the
Company's high-quality development according to the requirements of laws and regulations
such as the China Securities Regulatory Commission's Notice on Further Implementing
Matters Related to Cash Dividends of Listed Companies and relevant provisions of the
Articles of Association combined with the Company's actual situation the "LBX Pharmacy
Chain Joint Stock Company Shareholder Return Plan for the Next Three Years (2024-2026)"
was formulated. The plan stipulates: Under the condition of meeting the cash dividend
requirements and ensuring the funding needs for the Company's normal operation and
development the Company's annual cash dividend distribution from 2024 to 2026 should
reach at least 50% of the net profit attributable to shareholders of the listed company in the
consolidated financial statements for the year. The specific cash dividend ratio for each year
will be determined by the Company's Board of Directors based on the Company's profit scale
cash flow status development stage and current funding needs formulating annual or
interim dividend plans.During the reporting period the Company implemented the 2024 profit distribution plan
and the 2025 interim dividend in strict accordance with the profit distribution policy
stipulated in the Articles of Association and the Shareholder Return Plan and the resolutions
of the shareholders' meeting. According to the 2024 profit distribution plan of the Company
(which was completed) a cash dividend of RMB 0.08 (tax-inclusive) per share was
distributed without issuance of bonus shares or conversion into share capital and cash
dividends of RMB 60807649.04 were distributed plus the 2024 interim dividends of RMB
251408449.24 already distributed in 2023 totaling RMB 312216098.28 in 2024. As per
the 2025 interim dividend plan (which was completed) a cash dividend of RMB 0.14 (tax-
inclusive) per share was issued and cash dividends of RMB 106244633.04 were distributed.The Company intended to distribute cash dividends of RMB 0.27 (tax-inclusive) per
share to all shareholders based on the total share capital on the record date for equity
distribution in 2025. The Company did not issue bonus shares or convert capital reserve into
its share capital. As of March 31 2026 the total share capital of the Company is 758890236
85 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
shares and the Company intends to distribute cash dividends of RMB 204900364 (tax-
inclusive). The total amount of cash dividends proposed by the Company in 2025 (including
tax) was RMB 311144997 (including interim dividends of RMB 106244633 in 2025)
accounting for 81.48 % of the net profit attributable to the parent company in 2025. The profit
distribution proposal was submitted to the 2025 annual shareholders' meeting of the
Company for deliberation.(ii) Special notes on cash dividend policy
√Applicable □Not Applicable
Can the requirements of the Articles of Association or the resolution of the
√YES □NO
Shareholders' Meeting be met
√YES □NO
Are the criteria and ratio for dividend distribution are explicit and clear
√YES □NO
Are the relevant decision-making procedures and mechanisms complete
√YES □NO
Did independent directors perform their duties and play their due roles
Did minority shareholders have the chance of expressing their opinions and √YES □NO
demands and are their legitimate rights and interests well protected
(iii) If the Company is profitable and the parent company has positive profits available for
distribution to shareholders during the reporting period but no cash profit distribution plan is
proposed the Company shall disclose in detail he reasons and the purpose and the use plan for
the undistributed profits
□Applicable √Not Applicable
(iv) Profit Distribution and Capital Reserve Capitalization Plan for the Reporting Period
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Number of bonus shares per 10 shares (shares) 0
Dividend payout per 10 shares (RMB) (tax-
4.1
inclusive)
Number of conversions per 10 shares (shares) 0
Amount of cash dividends (tax-inclusive) 311144997
Net profit attributable to common shareholders of
381846593
the listed company in the consolidated statements
Ratio of the amount of cash dividends to the net
profit attributable to common shareholders of the 81.48
listed company in the consolidated statements (%)
Repurchase of shares in cash included in cash
0
dividends
Total amount of dividends (tax-inclusive) 311144997
Ratio of the total amount of dividends to the net
profit attributable to common shareholders of the 81.48
listed company in the consolidated statements (%)
86 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(v) Cash dividends for the last three fiscal years
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Cumulative cash dividend amount in the last three fiscal
1009324614
years (tax included) (1)
Cumulative amount of buybacks and write-offs in the last
0
three fiscal years (2)
Cumulative amount of cash dividends and buybacks and
1009324614
write-offs in the last three fiscal years (3)=(1)+(2)
Average annual net profit in the last three fiscal years (4) 609977710
Cash dividend ratio in the last three fiscal years
165.47
(%)(5)=(3)/(4)
Net profit attributable to ordinary shareholders of the
listed company in the consolidated financial statements 381846593
in the most recent fiscal year
Undistributed profit at the end of the year in the
1280572773
statement of the parent company in the latest fiscal year
IX.Situation and Impact of Company Equity Incentive Plans Employee Stock Ownership Plans or
Other Employee Incentive Measures
(I) Related incentive matters already disclosed in temporary announcements with no subsequent
progress or changes
√Applicable □Not Applicable
Matters overview Query index
On October 29 2024 the Company held the
fifth meeting of the fifth Board of Directors at
which the Proposal on Repurchasing and
Cancelling Part of the Restricted Shares was
approved upon deliberation. Whereas 21
incentive recipients of the 2022 Restricted
Stock Incentive Plan resigned or were subject
to position changes due to personal reasons
and the evaluation results of the 12 incentive
The Company made an announcement on
recipients at the individual level were average
the website (www.sse.com.cn) of the
the stocks were unlocked according to
Shanghai Stock Exchange on January 08
individuals' comprehensive performance
2025; Announcement No.: 2025-001.
achievement rate the Company repurchased
and canceled a total of 135561 restricted
stocks that had been granted to the above
incentive recipients but had not yet been
unlocked.On January 8 2025 the Company disclosed
the Announcement on the Implementation of
Repurchase and Cancellation of Equity
Incentive Restricted Shares.On October 29 2024 the fifth meeting of the The Company made an announcement on
fifth Board of Directors was held at which the the website (www.sse.com.cn) of the
87 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Proposal on the Fulfillment of Vesting Shanghai Stock Exchange on January 16
Conditions but Temporary Non-listing of 2025; Announcement No.: 2025-002;
Shares for the Second Vesting Period of the The Company made an announcement on
First Grant and the First Vesting Period of the the website (www.sse.com.cn) of the
Reserved Grant under the 2022 Restricted Shanghai Stock Exchange on March 26
Share Incentive Plan was approved upon 2025; Announcement No.: 2025-005;
deliberation whereby 209002 shares were
released from the first reserved granted
restricted shares and 1205377 shares were
released from the second restricted shares for
the first time.On January 16 2025 the Company disclosed
the Announcement on the Vesting and Listing
Circulation of the First Vesting Period of the
Reserved Grant under the 2022 Restricted
Share Incentive Plan. The aforementioned
209002 restricted shares were listed and
circulated on January 21 2025.On March 26 2025 the Company disclosed
the Announcement of LBX Pharmacy Chain
Joint Stock Company on the Vesting and
Listing Circulation of the First Vesting Period
of the First Grant under the 2022 Restricted
Share Incentive Plan. These shares were listed
and circulated on March 31 2025.On August 25 2025 the Company held the
tenth meeting of the fifth Board of Directors
and the seventh meeting of the fifth Board of
Supervisors at which the Proposal on
Repurchasing and Cancelling the Remaining
Restricted Shares and the Proposal on
Adjusting the Repurchase Price of the 2022
Restricted Share Incentive Plan were approved
upon deliberation. Among the incentive The Company made announcements on
recipients of the 2022 Restricted Stock the website (www.sse.com.cn) of the
Incentive Plan 32 recipients had resigned. The Shanghai Stock Exchange on August 26
third vesting period was granted for the first 2025; Announcement Nos.: 2025-043
time and the second vesting period was 2025-044;
reserved for the grant. The performance at the The Company made an announcement on
Company level was not up to standard. The the website (www.sse.com.cn) of the
Company repurchased and cancelled a total of Shanghai Stock Exchange on August 26
1205377 restricted shares that could not be 2025; Announcement No.: 2025-053;
vested. On August 26 2025 the Company
disclosed the Announcement on Repurchase
and Cancellation of the Remaining Restricted
Shares and the Announcement on Adjusting
the Repurchase Price of the 2022 Restricted
Stock Incentive Plan.On October 21 2025 the Company disclosed
the Announcement on the Implementation of
88 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Repurchase and Cancellation of Restricted
Shares under Equity Incentives and all the
remaining 1205377 restricted shares in 2021
were cancelled on October 23 2025.(II) Incentive situations not disclosed in temporary announcements or with subsequent progress
Equity Incentive
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
Employee Stock Ownership Plan
□Applicable √Not Applicable
Other Incentive Measures
□Applicable √Not Applicable
(III) Equity Incentives Granted to Directors and Officers during the Reporting Period
□Applicable √Not Applicable
(IV) Evaluation Mechanism for Officers during the Reporting Period and Establishment and
Implementation of Incentive Mechanisms
√Applicable □Not Applicable
The Company has established an assessment system for the operation and management
objectives and responsibilities of mid-to-senior executives based on performance
competition signing operation objective responsibility contracts and annual performance
objective assessments with operation managers and conducting performance ranking PK
quarterly. The assessment method stipulates: The remuneration of mid-to-senior
management is linked not only to the performance achievement of their respective units but
also to the impact of their work on future long-term development incentivizing managers at
all levels to actively focus on the long-term development of their units while ensuring the
achievement of performance goals.Implementation situation: At the beginning of each year after the Company's overall
annual operating objectives are reviewed and determined by the Board of Directors the
Company signs operation and management objective responsibility contracts with the
primary responsible persons of its subordinate subsidiaries. Following the principle of
"quarterly tracking assessment communication feedback and year-end assessment
realization" the implementation is strict. The assessment results are directly linked to the
remuneration and rewards/penalties of the operators to ensure the effective achievement of
89 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
the Company's operating objectives. At year-end the Company's HR department calculates
the remuneration based on the operation and management objective responsibility contracts
and annual performance achievement and submits it to the Remuneration and Appraisal
Committee for review and determination of the corresponding annual bonuses for officers.X.Construction and Implementation of Internal Control System during the Reporting Period
√Applicable □Not Applicable
The Company has established a comprehensive system of rules and regulations to
standardize various businesses. Through systems like OA SAP ERP etc. it standardizes
and controls the approval links of various business processes strictly implementing internal
control measures such as segregation of incompatible duties control authorization and
approval control accounting system control property protection control budget control etc.Explanation of Significant Deficiencies in Internal Control during the Reporting Period
□Applicable √Not Applicable
XI.Management Control over Subsidiaries during the Reporting Period
√Applicable □Not Applicable
The group headquarters controls subsidiaries through published management systems
and regulations covering multiple aspects such as finance operations sales merchandise
engineering etc. All subsidiaries conduct business according to the requirements of the
unified institutional documents issued by the group. Important business matters are reported
and approved according to procedures. For matters involving disclosure subsidiaries report
to the group headquarters and the group securities affairs department promptly fulfills
disclosure procedures. The group headquarters uniformly appoints and dismisses officers of
wholly-owned and holding subsidiaries designates directors and supervisors and dispatches
financial directors directors and supervisors to holding subsidiaries to strengthen subsidiary
management. Various departments of the group inspect and supervise the business conditions
of subsidiaries according to the principle of vertical departmental management assisting in
the improvement of subsidiary management levels and the refinement of risk control
mechanisms.Risk warning on abnormalities in management and control of subsidiaries
□Applicable √Not Applicable
XII.Explanation Regarding the Internal Control Auditor's Report
√Applicable □Not Applicable
90 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
In accordance with the requirements of the Guidelines for Auditing Enterprise Internal
Control and relevant standards of Chinese Certified Public Accountants the accounting firm
issued a standard unqualified opinion internal control auditor's report.Whether to Disclose the Internal Control Auditor's Report: Yes
Type of internal control audit report opinion: Standard unqualified opinion
Whether non-standard audit opinions on internal control were issued during the reporting
period or the previous year
□是√否
XIII.Rectification of Issues Found in the Special Action Self-Inspection of Listed Company
Governance
None
XIV.Environmental information of listed companies and their major subsidiaries included in the
list of enterprises disclosing environmental information according to law
□Applicable √Not Applicable
Other Explanations
√Applicable □Not Applicable
For environmental information of the main subsidiaries see the 2024 Environmental
Social and Corporate Governance (ESG) Report of LBX Pharmacy Chain Joint Stock
Company disclosed on the SSE website (www.sse.com.cn) on the same date.XV.Social Responsibility Work
(一) Whether to Separately Disclose Social Responsibility Report Sustainability Report or ESG
Report
√Applicable □Not Applicable
For details of the ESG Report see the 2025 Environmental Social and Corporate
Governance (ESG) Report of LBX Pharmacy Chain Joint Stock Company disclosed on the
SSE website (www.sse.com.cn) on the same date.
(二) Specific Situation of Social Responsibility Work
√Applicable □Not Applicable
Explanation of
External Donations Public Welfare Projects Quantity/content
Situation
Total investment (RMB'0000) 502.56 -
Of which: funds (RMB'0000) 491.75 -
Value of materials (RMB'0000) 10.81 -
Number of people benefited - -
Specific Explanation
√Applicable □Not Applicable
91 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
LBX Pharmacy has always taken steadfast actions to improve people's livelihood and
protect people's health. We have supported rural revitalization through agricultural industry
assistance and infrastructure construction. We have built "love stations" in tens of
thousands of stores across the country and carried out a variety of charitable donations and
special group care public welfare activities with ecological partners We have continuously
organized "journeys to healthy communities" to improve grassroots medicine and health so
as to contribute to the promotion of "common prosperity" and the construction of a healthy
China.In 2025 the Company's total investment in external donations and public welfare
projects was RMB 5.0256 million including RMB 4.9175 million in funds and RMB
108100 in material value. For details see the 2025 Environmental Social and Corporate
Governance (ESG) Report of LBX Pharmacy Chain Joint Stock Company disclosed on the
SSE website (www.sse.com.cn) on the same date.XVI.Specific Situation of Consolidating and Expanding Achievements in Poverty Alleviation Rural
Revitalization etc.√Applicable □Not Applicable
Poverty Alleviation and Rural Revitalization Explanation of
Quantity/content
Projects Situation
Total investment (RMB'0000) 2.77 -
Of which: funds (RMB'0000) 0.30 -
Value of materials (RMB'0000) 2.47 -
Number of people benefited - -
Form of assistance (e.g. industrial poverty
alleviation employment poverty alleviation - -
educational poverty alleviation etc.)
Specific Explanation
√Applicable □Not Applicable
As a pharmaceutical retailer serving the health of the people the Company actively
takes responsibility and acts proactively in rural revitalization. LBX Pharmacy regards
"Advancing into New Rural Areas" as one of its seven strategies gives full play to its own
industrial advantages drives the development of the rural pharmaceutical retail industry and
the improvement of medical conditions through the main "franchising" model targeted
assistance etc. supports the rural pharmaceutical retail industry to achieve development and
improve their medical conditions facilitates the increase in profits and gains from
agricultural rural areas' and farmers' products through the procurement of traditional Chinese
medicine and e-commerce empowerment and comprehensively promotes the construction
of beautiful rural areas.In 2025 the Company's total investment in poverty alleviation and rural revitalization
projects was RMB 27700 including RMB 24700 invested in the form of materials. For
details see the 2025 Environmental Social and Corporate Governance (ESG) Report of
92 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
LBX Pharmacy Chain Joint Stock Company disclosed on the SSE website (www.sse.com.cn)
on the same date.XVII.Others
□Applicable √Not Applicable
93 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Section V Important Notes
I.Performance of Commitments
(i) Commitments made by the Company's actual controllers shareholders related parties acquirer and the Company in or as of the reporting period
√Applicable □Not Applicable
If not fulfilled
Time limit If not
Commitment in time explain
Commitme Commitmen for timely
Commitment Commitmen Commitment Commitment performed the specific
nt t performance fulfilled
background t party time period strictly or reasons for not
Type Content required or explain
not fulfilling the
not next steps
commitment
During the
period of
Resolving
Janstar November holding Not
horizontal Remark 1 Yes Yes Not applicable
Investment 17 2019 more than applicable
competition
Commitments made 5% of LBX
in acquisition reports shares
or equity change During the
reports period of
Janstar November holding Not
Others Remark 2 Yes Yes Not applicable
Investment 17 2019 more than applicable
5% of LBX
shares
Until the Not
Pharmaceuti
Others Remark 3 July 16 2021 Yes commitment Yes Not applicable applicable
cal Group
is fulfilled
Commitments related Xie Zilong Until the Not
to major asset Others Chen Remark 4 July 16 2021 Yes commitment Yes Not applicable applicable
restructuring Xiulan is fulfilled
All Until the Not
Others directors Remark 5 July 16 2021 Yes commitment Yes Not applicable applicable
officers is fulfilled
94 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
During the Not
Pharmaceuti period of applicable
cal Group April 10 holding
Others Remark 6 Yes Yes Not applicable
Janstar 2015 more than
Investment 5% of LBX
Commitments
shares
Related to Initial
During the Not
Public Offering
period of applicable
Share lock- Pharmaceuti April 10 holding
Remark 7 Yes Yes Not applicable
up cal Group 2015 more than
5% of LBX
shares
Pharmaceuti Not
cal Group Until the applicable
March 3
Others Xie Zilong Remark 8 Yes commitment Yes Not applicable
2021
Chen is fulfilled
Xiulan
Refinancing-related
All Until the Not
commitments March 3
Others directors Remark 9 Yes commitment Yes Not applicable applicable
2021
officers is fulfilled
Until the Not
May 18
Others LBX Remark 10 Yes commitment Yes Not applicable applicable
2021
is fulfilled
September Not
Commitments
29 2022 to applicable
Related to Equity Others LBX Remark 11 July 31 2022 Yes Yes Not applicable
September
Incentives
282025
During the Not
Other Commitments
Pharmaceuti period of applicable
Made to the Resolving
cal Group April 10 holding
Company's Small and horizontal Remark 12 Yes Yes Not applicable
Janstar 2015 more than
Medium-sized competition
Investment 5% of LBX
Shareholders
shares
95 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
During the Not
period of applicable
Resolving Xie Zilong
April 10 holding
horizontal Chen Remark 13 Yes Yes Not applicable
2015 more than
competition Xiulan
5% of LBX
shares
During the
Pharmaceuti period as
Resolving
cal Group June 20 LBX's actual Not
horizontal Remark 14 Yes Yes Not applicable
Chen 2022 controller/co applicable
competition
Xiulan ntrolling
shareholder
Pharmaceuti
During the
Resolving cal Group
period of
Related- Janstar
April 10 holding Not
Party Investment Remark 15 Yes Yes Not applicable
2015 more than applicable
Transaction Xie Zilong
5% of LBX
s Chen
shares
Xiulan
Resolving
Pharmaceuti
Related- Until the
cal Group June 20 Not
Party Remark 16 Yes commitment Yes Not applicable
Chen 2022 applicable
Transaction is fulfilled
Xiulan
s
Remarks 1:
(I) Janstar Investment and other enterprises controlled by it will not engage in any business that constitutes substantial competition with LBX's
business scope in any form directly or indirectly in the future. (II) Strictly abide by the relevant regulations of the China Securities Regulatory
Commission Shanghai Stock Exchange and LBX's Articles of Association exercise shareholder rights and fulfill shareholder obligations equally
like other shareholders and not harm the legitimate rights and interests of LBX and other shareholders. (III) Unless Janstar Investment's indirectly
held LBX A-shares fall below 5% of LBX's total share capital at that time this commitment will remain valid. If Janstar Investment violates the
above commitments and causes losses to LBX and other shareholders Janstar Investment will bear the losses.Remarks 2:
96 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(I) Maintaining personnel independence with the listed company: 1. The listed company's general manager deputy general managers chief
financial officer secretary of the Board of Directors and other officers work full-time at the listed company and do not hold administrative
positions other than director or supervisor at Janstar Investment maintaining the personnel independence of the listed company. 2. The listed
company has a complete and independent labor personnel and salary management system which is completely independent from Janstar
Investment. (II) Maintaining asset independence with the listed company: 1. The listed company has independent and complete assets all of
which are under the control of the listed company and are independently owned and operated by the listed company. 2. Janstar Investment
currently does not and will not in the future illegally occupy the funds or assets of the listed company in any way. 3. Janstar Investment will not
provide guarantees for its own debts using the assets of the listed company. (III) Maintaining financial independence with the listed company: 1.The listed company continues to maintain an independent finance department and an independent financial accounting system. 2. The listed
company has standardized and independent financial and accounting systems and financial management systems for branches and subsidiaries.
3. The listed company independently opens bank accounts and does not share bank accounts with Janstar Investment. 4. The listed company can
make independent financial decisions and Janstar Investment will not interfere with the listed company's fund use and allocation through illegal
means. 5. The listed company's financial personnel are independent and do not hold concurrent positions or receive remuneration at Janstar
Investment. 6. The listed company pays taxes independently according to law. (IV) Maintaining institutional independence with the listed
company: 1. The listed company continues to maintain a sound corporate governance structure and has independent and complete organizational
institutions. 2. The listed company's shareholders' general meeting Board of Directors independent directors Board of Supervisors general
manager etc. independently exercise their powers according to laws regulations and the articles of association. (V) Maintaining business
independence with the listed company: 1. The listed company has the independent assets personnel qualifications and capabilities to carry out
operating activities maintains independence in procurement production sales intellectual property etc. and possesses the ability to operate
independently and continuously facing the market. 2. Janstar Investment will not interfere in the business activities of the listed company except
through exercising shareholder rights.Remark 3:
(I) Commitment letter regarding ensuring the independence of the listed company: LBX Pharmaceutical Group Co. Ltd. will strictly follow the
requirements of the Company Law Securities Law and other applicable laws and regulations for listed companies legally exercise shareholder
rights and fulfill corresponding obligations take practical and effective measures to ensure that after the completion of this transaction LBX is
completely separate from other enterprises controlled by the Company in terms of personnel assets finance institutions and business
maintaining the independence of the listed company in business assets personnel finance and institutions. (II) Principled opinions on this
restructuring: This transaction reflects LBX's optimization of its business structure and pursuit of further development. This transaction is
conducive to enhancing LBX's continuous operating capabilities improving LBX's profitability and protecting the interests of LBX shareholders
especially small and medium-sized shareholders. Our company/I agree(s) in principle to this transaction and will actively promote the smooth
97 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
progress of this transaction by taking measures including but not limited to attending LBX general shareholders' meetings and voting in favor of
the relevant proposals for this transaction under the premise of maximizing the interests of LBX and investors. (III) Commitment letter regarding
taking remedial measures for the dilution of immediate returns from this major asset purchase: 1. Exercise controlling shareholder rights in
accordance with applicable laws regulations and the provisions of the Articles of Association of LBX Pharmacy Chain Joint Stock Company
not overstep LBX's business management activities and not encroach on LBX's interests. 2. As one of the responsible parties for remedial
measures if the above commitment is violated or refused to be fulfilled agree that the CSRC Shanghai Stock Exchange and other securities
regulatory agencies may impose relevant penalties or take relevant management measures in accordance with their formulated or issued relevant
regulations and rules; if such commitment is violated and causes losses to the Company or investors willing to bear compensation liability to the
Company or investors according to law. (IV) Commitment letter regarding the absence of insider trading: 1. The Company does not have situations
of leaking relevant insider information of this transaction or using such insider information for insider trading; 2. The Company does not have
situations of being investigated by the CSRC (or investigated by judicial organs) for insider trading related to this transaction; 3. If the above
commitment is violated and causes losses to the listed company or investors the Company will bear legal responsibility. (V) Explanation of share
reduction plan from the date of signing the commitment letter to the completion of implementation: From the date of signing the commitment
letter to the completion of implementation the Company has no share reduction plan (the aforementioned shares include shares held before this
transaction and shares newly added due to rights issues such as bonus shares capitalization of capital reserves etc. implemented by the listed
company during the aforementioned period). If subsequent reductions are made based on actual needs or market changes relevant information
will be disclosed in a timely manner in accordance with applicable laws and regulations.Remark 4:
(I) Commitment letter regarding ensuring the independence of the listed company: I will strictly follow the requirements of the Company Law
Securities Law and other applicable laws and regulations for listed companies legally exercise shareholder rights and fulfill corresponding
obligations take practical and effective measures to ensure that after the completion of this transaction LBX is completely separate from other
enterprises controlled by me in terms of personnel assets finance institutions and business maintaining the independence of the listed company
in business assets personnel finance and institutions. (II) Principled opinions on this restructuring: This transaction reflects LBX's optimization
of its business structure and pursuit of further development. This transaction is conducive to enhancing LBX's continuous operating capabilities
improving LBX's profitability and protecting the interests of LBX's shareholders especially small and medium-sized shareholders. I agree in
principle to this transaction and will actively promote the smooth progress of this transaction by taking measures including but not limited to
attending general shareholders' meetings of LBX and voting in favor of the relevant proposals for this transaction under the premise of
maximizing the interests of LBX and investors. (III) Commitment letter regarding taking remedial measures for the dilution of immediate returns
from this major asset purchase: 1. Exercise actual controller rights in accordance with applicable laws regulations and the provisions of the
Articles of Association of LBX Pharmacy Chain Joint Stock Company not overstep LBX's business management activities and not encroach on
98 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
LBX's interests. 2. As one of the responsible parties for remedial measures if the above commitment is violated or refused to be fulfilled agree
that the CSRC Shanghai Stock Exchange and other securities regulatory agencies may impose relevant penalties or take relevant management
measures in accordance with their formulated or issued relevant regulations and rules; if such commitment is violated and causes losses to the
Company or investors willing to bear compensation liability to the Company or investors according to law. (IV) Commitment letter regarding
the absence of insider trading: 1. I do not have situations of leaking relevant insider information of this transaction or using such insider
information for insider trading; 2. I do not have situations of being investigated by the CSRC (or investigated by judicial organs) for insider
trading related to this transaction; 3. If the above commitment is violated and causes losses to the listed company or investors I will bear individual
and joint legal responsibility. (V) Explanation of share reduction plan from the date of signing the commitment letter to the completion of
implementation: From the date of signing the commitment letter to the completion of implementation I have no share reduction plan (the
aforementioned shares include shares held before this transaction and shares newly added due to rights issues such as bonus shares capitalization
of capital reserves etc. implemented by the listed company during the aforementioned period). If subsequent reductions are made based on actual
needs or market changes relevant information will be disclosed in a timely manner in accordance with applicable laws and regulations.Remark 5:
(I) Commitment letter regarding taking remedial measures for the dilution of immediate returns from this major asset purchase: 1. I promise not
to transfer benefits to other entities or individuals gratuitously or under unfair conditions nor harm the Company's interests in other ways; 2. I
promise to restrain my own business consumption behavior; 3. I promise not to use company assets for investment or consumption activities
unrelated to fulfilling my duties; 4. I promise that the remuneration system formulated by the Board of Directors or the Remuneration Committee
will be linked to the implementation of the Company's remedial measures; 5. I promise that if the Company implements an equity incentive plan
in the future the exercise conditions will be linked to the implementation of the Company's remedial measures; 6. After the issuance date of this
commitment and before the completion of the Company's major asset purchase if the CSRC issues other new regulatory provisions regarding
remedial measures and their commitments and the above commitments cannot meet such provisions I promise to issue supplementary
commitments in accordance with the latest provisions of the CSRC at that time; 7. I promise to earnestly fulfill the relevant remedial measures
formulated by the Company and any commitments made by me regarding remedial measures. If I violate such commitments and cause losses to
the Company or investors I am willing to bear compensation liability to the Company or investors according to law. As one of the responsible
parties for remedial measures if I violate the above commitment or refuse to fulfill the above commitment I agree that the CSRC Shanghai Stock
Exchange and other securities regulatory agencies may impose relevant penalties or take relevant management measures against me in accordance
with their formulated or issued relevant regulations and rules.Remark 6:
99 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
If the prospectus for LBX's initial public offering contains false records misleading statements or material omissions that constitute a major and
substantial impact on judging whether LBX meets the legally stipulated issuance conditions our company will urge LBX to repurchase all newly
issued shares in the initial public offering according to legal procedures; and our company will repurchase the originally restricted shares
transferred by our company according to law. Within one month after the CSRC identifies or the people's court determines the existence of the
above situation our company will initiate share repurchase measures issue a repurchase offer. The price at which our company repurchases the
transferred originally restricted shares according to law shall not be lower than the transfer price of the originally restricted shares and interest
for the period from the completion of the transfer registration of the originally restricted shares to the date of the repurchase announcement shall
be paid at the prevailing bank demand deposit rate (calculated according to the benchmark interest rate announced by the People's Bank of China)
as compensation. If the prospectus for LBX's initial public offering contains false records misleading statements or material omissions causing
investors to suffer losses in securities trading our company will compensate investors for their losses according to law. The scope of compensation
includes losses from stock investment commissions stamp duty etc. unless our company can prove that it is not at fault. Within one month after
the CSRC identifies or the people's court determines the existence of the above situation our company will pay cash compensation to the investors
who suffered losses. The amount of compensation shall be limited to the actual direct losses confirmed by investor evidence and does not include
indirect losses. If= our company violates the commitment regarding repurchasing shares and compensating investors for losses and fails to take
effective remedial measures or fulfill compensation liability LBX has the right to freeze the LBX shares held by our company and may withhold
cash dividends payable to our company to fulfill relevant compensation or indemnity liability until our company fully fulfills the relevant liability.Remark 7:
Within 36 months from the date LBX shares are listed and traded on a securities exchange within the People's Republic of China the Company
will not transfer or entrust others to manage the shares issued before LBX's initial public offering that are directly or indirectly held by the
Company nor will LBX repurchase the shares issued before LBX's initial public offering that are directly or indirectly held by the Company.However this excludes the situation where the Company sells the LBX shares it holds to investors through public offering along with LBX's
initial public offering of new shares according to law. If the Securities Law of the People's Republic of China Company Law of the People's
Republic of China CSRC and the securities exchange where LBX shares are listed have other requirements regarding the transfer of LBX shares
held by the Company the Company will comply with the relevant requirements. If within 6 months after LBX's listing the closing price of the
stock for 20 consecutive trading days (if LBX has dividend distribution bonus shares capitalization of capital reserves etc. the price will be
adjusted accordingly the same below) is lower than the issue price of LBX's initial public offering or if the closing price of the stock at the end
of 6 months after LBX's listing (if that day is not a trading day then the first trading day thereafter) is lower than the issue price the lock-up
period for the shares issued before LBX's initial public offering held by the Company will automatically be extended by 6 months. The Company
intends to hold the Company's stock long-term and has no intention to reduce its holdings of LBX shares within two years after the lock-up period
expires; if it intends to reduce its holdings of LBX shares after the two-year period following the lock-up expiration it will notify LBX 3 trading
100 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
days in advance and make an announcement and handle it in accordance with the Company Law of the People's Republic of China Securities
Law of the People's Republic of China CSRC and relevant regulations of the SSE.Remark 8:
Commitment letter regarding the effective implementation of remedial measures for the dilution of immediate returns from this non-public
offering of shares: 1. I/our company will continue to ensure the independence of the listed company not overstep the Company's business
management activities and not encroach on the Company's interests; 2. I/our company will earnestly fulfill the relevant remedial measures
formulated by the Company and this commitment. If this commitment is violated or refused to be fulfilled and causes losses to the Company or
shareholders agree to bear corresponding legal liability according to laws regulations and relevant provisions of securities regulatory agencies;
3. From the date of signing this commitment until the completion of the Company's non-public offering of shares if the CSRC Shanghai Stock
Exchange and other securities regulatory agencies issue other new regulatory provisions regarding remedial measures and their commitments
and the above commitments cannot meet such provisions I/our company promise(s) to issue supplementary commitments in accordance with the
latest provisions of the CSRC Shanghai Stock Exchange and other securities regulatory agencies at that time.Remark 9:
Commitment letter regarding the effective implementation of remedial measures for the dilution of immediate returns from this non-public
offering of shares: 1. I promise not to transfer benefits to other entities or individuals gratuitously or under unfair conditions nor harm the
Company's interests in other ways; 2. I promise to restrain my own business consumption behavior; 3. I promise not to use company assets for
investment or consumption activities unrelated to fulfilling my duties; 4. I promise that the remuneration system formulated by the Board of
Directors or the Remuneration Committee will be linked to the implementation of the Company's remedial measures; 5. If the Company
implements an equity incentive plan in the future its exercise conditions will be linked to the implementation of the Company's remedial measures;
6. As one of the responsible parties for remedial measures I promise to earnestly fulfill the relevant remedial measures formulated by the Company
and any commitments made by me regarding remedial measures. If I violate such commitments and cause losses to the Company or investors I
am willing to bear compensation liability to the Company or investors according to law. If I violate the above commitment or refuse to fulfill the
above commitment I agree that the CSRC Shanghai Stock Exchange and other securities regulatory agencies may impose relevant penalties or
take relevant regulatory measures against me in accordance with their formulated or issued relevant regulations and rules.
7. From the date of signing this commitment until the completion of the Company's non-public offering of shares if the CSRC Shanghai Stock
Exchange and other securities regulatory agencies issue other new regulatory provisions regarding remedial measures and their commitments
and the above commitments cannot meet such provisions I promise to issue supplementary commitments in accordance with the latest provisions
of the CSRC Shanghai Stock Exchange and other securities regulatory agencies at that time.
101 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Remark 10:
Commitment letter regarding the absence of real estate development business: 1. As of the date of issuance of this commitment letter the
acquisition of the aforementioned Faxiangdi land plot is based on the needs of our company to carry out its main business. Currently only
preliminary preparation work such as exploration and design before housing construction is being carried out on this land plot. Our company and
its subsidiaries within the scope of consolidated financial statements (hereinafter referred to as "Holding Subsidiaries") promise not to carry out
real estate development business involving the external sale of houses on this land plot. 2. The land and construction of factories office buildings
and other supporting facilities involved in our company's fund-raising investment project this time will all be used for our company's and its
subsidiaries' own production office and operating activities with no plans for external leasing or selling and do not involve real estate
development operation sales etc. Our company will strictly use the raised funds in accordance with the provisions of regulatory documents such
as the Administrative Measures for Securities Issuance by Listed Companies and Supervisory Guidelines No. 2 for Listed Companies - Regulatory
Requirements for the Management and Use of Raised Funds by Listed Companies. The funds raised from this non-public offering of shares after
deducting issuance expenses are intended to be fully used for the new chain pharmacy project East China pharmaceutical product sorting and
processing project enterprise digital platform and new retail construction project and supplementing working capital; the funds raised from this
non-public offering do not involve the construction on the aforementioned Faxiangdi land plot nor will our company use the raised funds for the
aforementioned Faxiangdi construction by changing the use of raised funds. At the same time the portion of the funds raised from this non-public
offering used to supplement working capital will not be used in any way for or indirectly flow into real estate development operation sales etc.nor will it directly or indirectly flow into the real estate development field through other means. 3. As of the date of issuance of this commitment
letter neither our company nor its Holding Subsidiaries possess qualifications related to real estate development operation or sales; during the
reporting period neither our company nor its Holding Subsidiaries engaged in real estate development operation or sales business nor did they
obtain or have obtained real estate development enterprise qualification certificates or other qualifications related to real estate development and
operation. Our company guarantees that neither our company nor its Holding Subsidiaries will engage in real estate development operation sales
etc. in the future nor will they apply for or obtain operating qualifications related to real estate development.Remark 11:
The Company promises not to provide loans or any other form of financial assistance for the restricted shares obtained by incentive objects under
this incentive plan including providing guarantees for their loans.Remark 12:
(1) As of the date of issuance of this commitment letter our company has not directly or indirectly engaged in business constituting horizontal
competition with LBX's main business within or outside the People's Republic of China (except through LBX); (2) From the effective date of this
102 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
commitment letter during the period when our company holds more than 5% shares of LBX (hereinafter referred to as the "Commitment Period")
unless otherwise stated in this commitment letter within or outside China will not in any way (including but not limited to investment M&A
joint venture cooperative partnership contracting or leasing operation) directly or indirectly (except through LBX) engage in or intervene in
business or activities that constitute or may constitute competition with LBX's existing or future actual main business; (3) During the Commitment
Period our company will not support others in any way to engage in business or activities that constitute or may constitute competition with
LBX's existing or future main business; (4) During the Commitment Period if the business of our company due to LBX's business expansion
constitutes horizontal competition with LBX's main business our company shall avoid horizontal competition through stopping the competitive
business injecting the competitive business into LBX transferring the competitive business to an unrelated third party or other legal means; if
our company transfers the competitive business LBX shall have the right of first refusal; (5) If the above commitment is proven untrue or not
complied with our company will compensate LBX for all direct and indirect losses; (6) If our company violates the above commitment and fail
to take effective remedial measures or fulfill compensation liability the income from the competitive business engaged in by me/this enterprise
in violation of the commitment shall belong to LBX; if our company fails to hand over the aforementioned income to LBX LBX has the right to
freeze the LBX shares held by our company and may withhold cash dividends payable to our company to offset the income from engaging in
competitive business that our company should hand over to LBX until our company fully fulfills the relevant liability.Remark 13:
(1) As of the date of issuance of this commitment letter I/this enterprise have not directly or indirectly engaged in business constituting horizontal
competition with LBX's main business within or outside the People's Republic of China (except through LBX); (2) From the effective date of this
commitment letter during the period when I/this enterprise act as the actual controller of LBX (hereinafter referred to as the "Commitment
Period") unless otherwise stated in this commitment letter within or outside China will not in any way (including but not limited to investment
M&A joint venture cooperative partnership contracting or leasing operation) directly or indirectly (except through LBX) engage in or intervene
in business or activities that constitute or may constitute competition with LBX's existing or future actual main business; (3) During the
Commitment Period I/this enterprise will not support others in any way to engage in business or activities that constitute or may constitute
competition with LBX's existing or future main business; (4) During the Commitment Period if the business of mine/this enterprise due to LBX's
business expansion constitutes horizontal competition with LBX's main business I/this enterprise shall avoid horizontal competition through
stopping the competitive business injecting the competitive business into LBX transferring the competitive business to an unrelated third party
or other legal means; if I/this enterprise transfer the competitive business LBX shall have the right of first refusal; (5) If the above commitment
is proven untrue or not complied with I/this enterprise will compensate LBX for all direct and indirect losses; (6) If I/this enterprise violate the
above commitment and fail to take effective remedial measures or fulfill compensation liability the income from the competitive business engaged
in by me/this enterprise in violation of the commitment shall belong to LBX; if I/this enterprise fail to hand over the aforementioned income to
LBX LBX has the right to freeze the LBX shares held by me/this enterprise and may withhold cash dividends payable to me/this enterprise to
103 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
offset the income from engaging in competitive business that I/this enterprise should hand over to LBX until I/this enterprise fully fulfill the
relevant liability. (7) This commitment letter shall take effect from the date of signature by me/this enterprise remain valid during the Commitment
Period and cannot be changed or revoked without LBX's consent.Remark 14:
As of the completion date of this acquisition the acquirer: During the period as the actual controller/controlling shareholder of LBX I/this
enterprise have not directly or indirectly engaged in business constituting horizontal competition with LBX's main business within or outside the
People's Republic of China (except through LBX); will not in any way (including but not limited to investment M&A joint venture cooperative
partnership contracting or leasing operation) directly or indirectly (except through LBX) engage in or intervene in business or activities that
constitute or may constitute competition with LBX's existing or future actual main business; I/this enterprise will not support others in any way
to engage in business or activities that constitute or may constitute competition with LBX's existing or future main business; if the business of
mine/this enterprise due to LBX's business expansion constitutes horizontal competition with LBX's main business I/this enterprise shall avoid
horizontal competition through stopping the competitive business injecting the competitive business into LBX transferring the competitive
business to an unrelated third party or other legal means; if I/this enterprise transfer the competitive business LBX shall have the right of first
refusal.Remark 15:
(1) Our company/I and other enterprises controlled by our company/I do not have situations of occupying LBX funds through borrowing repaying
debts on behalf advancing funds or other means. (2) After LBX's listing our company/I will strictly exercise shareholder and director rights and
fulfill shareholder and director obligations in accordance with the Company Law of the People's Republic of China and other laws regulations
administrative rules normative documents relevant provisions of the stock exchange and LBX's articles of association. When voting on related-
party transactions between our company/I and related enterprises controlled by our company/I and LBX at general shareholders' meetings and
Board of Directors meetings fulfill the obligation of recusal. (3) After LBX's listing our company/I will minimize related-party transactions
between our company/I and related enterprises controlled by our company/I and LBX and take appropriate measures to eliminate related-party
transactions with LBX as soon as conditions permit in the future. If necessary and unavoidable related-party transactions occur at that time our
company/I guarantee that our company/I and related enterprises controlled by our company/I promise to follow market principles and fair prices
for fair transactions strictly perform the decision-making procedures for related-party transactions set by law and LBX's articles of association
and fulfill information disclosure obligations timely according to law absolutely not harming the legitimate rights and interests of LBX and its
non-related shareholders through related-party transactions. (4) If our company/I violate(s) the above commitment and occupy LBX funds our
company/I violating the commitment will return the occupied funds and interest (calculated according to the benchmark lending rate of the
People's Bank of China for the same period) to LBX; if our company/I and enterprises controlled by our company/I engage in related-party
104 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
transactions with LBX without LBX performing the decision-making procedures for related-party transactions or if the related-party transactions
are unfair and cause losses to LBX our company/I will attribute all income generated from the corresponding related-party transactions to LBX.If our company/I fail(s) to return the aforementioned funds and interest or income from related-party transactions to LBX LBX has the right to
freeze the LBX shares held or controlled by our company/I and may withhold cash dividends payable to our company/I or controlled enterprises
to offset the funds and interest and income from related-party transactions that our company/I should return to LBX until our company/I fully
fulfill the relevant liability.Remark 16:
As of the completion date of this acquisition the acquirer will minimize related-party transactions between our company/I and related enterprises
controlled by our company/I and LBX and take appropriate measures to eliminate related-party transactions with LBX as soon as conditions
permit in the future. If necessary and unavoidable related-party transactions occur at that time our company/I guarantee that our company/I and
related enterprises controlled by our company/I promise to follow market principles and fair prices for fair transactions strictly perform the
decision-making procedures for related-party transactions set by law and LBX's articles of association and fulfill information disclosure
obligations timely according to law absolutely not harming the legitimate rights and interests of LBX and its non-related shareholders through
related-party transactions.
105 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(ii) If the Company's assets or projects have profit forecasts and the reporting period is still within
the profit forecast period the Company shall explain whether the assets or projects have
reached the original profit forecast and the reasons thereof
□Achieved □Not Achieved √Not Applicable
(iii) Performance commitment
□Applicable √Not Applicable
Change in the performance commitment
□Applicable √Not Applicable
Other Explanations
□Applicable √Not Applicable
106 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
II.Occupation of Capital Not for Business by Controlling Shareholders and Other Related Parties
within the Reporting Period
□Applicable √Not Applicable
III.Illegal Guarantee
□Applicable √Not Applicable
IV.Statement of the "Modified Audit Report" of the Accounting Firm Provided by the Board of
Directors of the Company
□Applicable √Not Applicable
V.The Company's Explanation and Analysis on the Reasons and Influences of Changes in
Accounting Policies and Accounting Estimates or Correction of Major Accounting Errors
（i）Analysis of the causes and effects of changes in accounting policies and accounting estimates
provided by the Company
□Applicable √Not Applicable（ii）Analysis of the causes and effects of corrections of significant accounting errors provided by
the Company
□Applicable √Not Applicable（iii）Communication with the former accounting firm
□Applicable √Not Applicable（iv）Approval procedures and other explanations
□Applicable √Not Applicable
VI.Appointment and Dismissal of Accounting Firm
Unit: RMB Currency: RMB
Currently appointed
Name of domestic accounting firm Ernst & Young Hua Ming LLP
Remuneration of domestic accounting firm 2100000
Audit years of the domestic accounting firm 5 years
Names of certified public accountants of the
Wang Shijie Liang Chang'e
domestic accounting firm
Cumulative audit service years of registered
5 years
accountants of domestic accounting firm
Name of overseas accounting firm Not applicable
Remuneration of overseas accounting firm Not applicable
Audit tenure of overseas accounting firm Not applicable
107 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Name Remuneration
Internal control audit Ernst & Young Hua Ming
600000
accounting firm LLP
Explanation of Appointment and Dismissal of Accounting Firm
□Applicable √Not Applicable
Explanation of Changing Accounting Firm during the Audit Period
□Applicable √Not Applicable
Explanation of the decrease in audit fees by more than 20% (including 20%) compared
with the previous year
□Applicable √Not Applicable
VII.Situations at risk of delisting
(i)Reasons for delisting risk warning
□Applicable √Not Applicable
(ii)Countermeasures to be taken by the Company
□Applicable √Not Applicable
(iii)Circumstances and reasons for facing termination of listing
□Applicable √Not Applicable
VIII.Matters related to bankruptcy and reorganization
□Applicable √Not Applicable
IX.Significant litigation and arbitration
□The Company had major litigation or arbitration matters this year
√The Company had no major litigation or arbitration matters this year
X.Punishment and Rectification of Listed Company and Its Directors Officers Controlling and
Actual Controllers Suspected of Violating Laws and Regulations
□Applicable √Not Applicable
XI.Integrity of the Company Its Controlling and Actual Controllers during the Reporting Period
□Applicable √Not Applicable
XII.Significant Related-party Transactions
(i)Related-party transactions involving daily operations
1. Matters disclosed in interim announcements without progress or changes in subsequent
implementation
□Applicable √Not Applicable
108 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
2. Matters disclosed in interim announcements with progress or changes in subsequent
implementation
□Applicable √Not Applicable
3. Matters not disclosed in the interim announcements
□Applicable √Not Applicable
(ii)Related-party transactions arising from the acquisition or sale of assets or equity interests
1. Matters disclosed in interim announcements without progress or changes in subsequent
implementation
□Applicable √Not Applicable
2. Matters disclosed in interim announcements with progress or changes in subsequent
implementation
□Applicable √Not Applicable
3. Matters not disclosed in the interim announcements
□Applicable √Not Applicable
4. For the matters involved with performance agreement the performance realization during the
reporting period shall be disclosed
□Applicable √Not Applicable
(iii)Significant related-party transactions involving joint foreign investment
1. Matters disclosed in interim announcements without progress or changes in subsequent
implementation
□Applicable √Not Applicable
2. Matters disclosed in interim announcements with progress or changes in subsequent
implementation
□Applicable √Not Applicable
3. Matters not disclosed in the interim announcements
□Applicable √Not Applicable
(iv)Related credit and debt transactions
1. Matters disclosed in interim announcements without progress or changes in subsequent
implementation
□Applicable √Not Applicable
109 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
2. Matters disclosed in interim announcements with progress or changes in subsequent
implementation
□Applicable √Not Applicable
3. Matters not disclosed in the interim announcements
□Applicable √Not Applicable
(v)The financial business between the Company and the affiliated financial company the financial
company under the Company's control and related parties
□Applicable √Not Applicable
(vi)Others
□Applicable √Not Applicable
XIII.Significant Contracts and Their Performance
(i) Trusteeship contracting and leasing matters
1. Custody
□Applicable √Not Applicable
2. Contracting
□Applicable √Not Applicable
3. Lease
□Applicable √Not Applicable
110 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(ii) Guarantee Status
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Company's External Guarantees (Excluding Guarantees for Subsidiaries)
Relationshi
p between Guarantee
Whether Whether Whether
the date Overdue Related
Guaranteed Guarantee Guarantee Guarantee Guarantee Collateral guarantee the Counter- guarantee
Guarantor guarantor (agreement guarantee Relationshi
party amount Start date End date type (If any) has been guarantee guarantee for related
and the signing amount p
fulfilled is overdue party
listed date)
company
None
Total Guarantee Amount Occurred during the Reporting Period (Excluding 0
Guarantees for Subsidiaries)
Total Guarantee Balance at End of Reporting Period (A) (Excluding Guarantees 0
for Subsidiaries)
Guarantees Provided by the Company and Its Subsidiaries for Subsidiaries
Total Guarantee Amount Occurred for Subsidiaries during the Reporting Period 340000000
Total Guarantee Balance for Subsidiaries at End of Reporting Period (B) 340000000
Company's Total Guarantee Amount (Including Guarantees for Subsidiaries)
Total amount of guarantees (A+B) 340000000
Proportion of total guarantees to the Company's net assets (%) 4.86
Including:
Amount of Guarantees Provided for Shareholders Actual Controller and Their
0
Related Parties (C)
Amount of Debt Guarantees Provided Directly or Indirectly for Guaranteed 280000000
Parties with Asset-Liability Ratio Exceeding 70% (D)
Amount of Total Guarantee Exceeding 50% of Net Assets (E) 0
Total Amount of the Above Three Guarantees (C+D+E) 280000000
Explanation of possible joint and several liabilities for unexpired guarantees -
Explanation of guarantee situation -
111 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(iii) Entrusted cash asset management
1. Entrusted wealth management
(1). Overall Situation of Entrusted Wealth Management
□Applicable √Not Applicable
Other Situations
□Applicable √Not Applicable
(2). Individual Entrusted Wealth Management
□Applicable √Not Applicable
Other Situations
□Applicable √Not Applicable
(3). Provision for impairment of entrusted wealth management
□Applicable √Not Applicable
2. Entrusted loan
(1). General entrusted loan
□Applicable √Not Applicable
Other Situations
□Applicable √Not Applicable
(2). Individual entrusted loan
□Applicable √Not Applicable
Other Situations
□Applicable √Not Applicable
112 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(3). Provision for impairment of entrusted loans
□Applicable √Not Applicable
3. Other Situations
□Applicable √Not Applicable
(iv) Other major contracts
□Applicable √Not Applicable
XIV.Statement of progress in the use of raised funds
√Applicable □Not Applicable
(i) Overall Usage Situation of Raised Funds
√Applicable □Not Applicable
Unit: RMB
Of which:
Total Cumulative Cumulative
total
cumulative investment investment
Total cumulative Ratio of
investment progress of progress of Total
committed investment investment
Amount of amount of raised over-raised Amount of amount of
Date of Total Net amount investment amount of amount in
Sources of over-raised raised funds as of funds as of investment raised
receiving amount of of raised of raised over-raised the current
raised funds funds (3) funds as of the end of the end of during the funds with
raised funds raised funds funds (1) funds in the funds as of year (%)
=(1) - (2) the end of the the year (8) changed
prospectus the end of (9) =
the reporting reporting use
(2) the (8)/(1)
reporting period (%) period (%)
reporting
period (4) (6) = (4)/(1) (7) = (5)/(3)
period (5)
Issuing
Shares to 2022 17404536 17252739 17252739 15950543 72571185.--92.45-4.2166000000
Specific January 27 73.80 08.51 08.51 72.91 52
Objects
1740453617252739172527391595054372571185.
Total / - - 92.45 - 4.21 66000000
73.8008.5108.5172.9152
113 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Other Explanations
□Applicable √Not Applicable
(ii) Details of fundraising projects
√Applicable □Not Applicable
1. Details and use of fundraising projects
√Applicable □Not Applicable
Unit: Ten thousand yuan
Whether
Total the
amount feasibili
Whether Wheth
Total of Cumulative ty of the
it is a er it Wheth
planned raised investment Date of Benef The project
promise involv er the
investm Amou funds progress as ready Specific its realized has
Name Nature d es invest
Sources ent nt investe of the end for reason for realiz benefits changed
of of the investm chang If ment Surplus
of raised amount invest d as of of the intended failing to ed or R&D significa
projec projec ent e of closed progres amount
funds of ed this the end reporting use of invest as during results of ntly if
t t project invest sed as
raised year of the period (%) the planned the this yes
in the ment planne
funds reporti (3)＝ project year project please
prospect directi d
(1) ng (2)/(1) explain
us on
period the
(2) specific
situation
New
Issuing
Chain Produ
Shares
Phar ction Decemb Not
to Yes No 57328 1377 47518 82.89 No Yes 5816 -8703 No 11239
macy Constr er 2025 applicable
Specific
Projec uction
Objects
t
East
China
Issuing Phar
Produ
Shares mace Not
ction August Not Not
to utical Yes No 27880 634 26237 94.11 Yes Yes applic No 1195
Constr 2024 applicable applicable
Specific Produ able
uction
Objects ct
Sortin
g and
114 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Proce
ssing
Projec
t
Enter
prise
Digita
l
Platfo
Issuing
rm
Shares Not
and March Not Not
to R&D Yes Yes 30023 1733 30323 101 Yes Yes applic No -
New 2025 applicable applicable
Specific able
Retail
Objects
Const
ructio
n
Projec
t
LBX
Phar
macy
Chan
Issuing
gsha Produ
Shares Not
NDC ction March Not Not
to No Yes 6600 3513 4728 71.63 No Yes applic No 1885
Expan Constr 2026 applicable applicable
Specific able
sion uction
Objects
Projec
t
(Phas
e I)
Suppl
Issuing ement
Shares ing Not Not Not Not Not
Not Not
to Worki Others Yes No 50696 - 50699 100 applicab applic applica applic applicab 69
applicable applicable
Specific ng le able ble able le
Objects Capit
al
Not
15950
Total / / / / 172527 7257 92.45 / / / / applic / / 14388
5
able
115 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
2. Details and use of over-raised funds
□Applicable √Not Applicable
3. Details on further demonstration of fundraising projects during the reporting period
□Applicable √Not Applicable
(iii) Changes or termination of fundraising during the reporting period
□Applicable √Not Applicable
116 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(iv) Other uses of raised funds at the end of the reporting period
1. Initial investment and replacement of investment projects utilizing raised funds
□Applicable √Not Applicable
2. Temporary supplement of working capital using idle raised funds
√Applicable □Not Applicable
1. On October 29 2024 the Company held the fifth meeting of the fifth Board of
Directors and agreed that it would use the idle raised funds of RMB 150 million to
temporarily supplement the working capital for no more than 6 months from the approval by
the Board of Directors upon deliberation. The sponsor issued verification opinions for
approving temporary supplementation of the raised fund to the working capital. As of April
25 2025 the Company had returned RMB 150 million to the special account for raised funds.
Goldman Sachs (China) Securities Company Limited the organization that continuously
supervised raised funds of the Company and the sponsor representative were informed of
the above-mentioned return of raised funds. The information disclosure obligation was timely
fulfilled.
2. On April 29 2025 the Company held the ninth meeting of the fifth Board of Directors
and agreed that it would use the idle raised funds of RMB 70 million to temporarily
supplement the working capital for no more than 6 months from the approval by the Board
of Directors upon deliberation. The sponsor issued verification opinions for approving
temporary supplementation of the raised fund to the working capital. As of October 24 2025
the Company had cumulatively returned the idle raised funds of RMB 70 million that had
temporarily supplemented the working capital. Goldman Sachs (China) Securities Company
Limited the organization that continuously supervised raised funds of the Company and the
sponsor representative were informed of the above-mentioned return of raised funds. The
information disclosure obligation was timely fulfilled.
3. On October 28 2025 the Company held the eleventh meeting of the fifth Board of
Directors and agreed that it would use the idle raised funds of RMB 100 million to
temporarily supplement the working capital for no more than 2 months from the approval by
the Board of Directors upon deliberation. The sponsor issued verification opinions for
approving temporary supplementation of the raised fund to the working capital. As of
December 25 2025 the Company had cumulatively returned the idle raised funds of RMB
100 million that had temporarily supplemented the working capital. Goldman Sachs (China)
Securities Company Limited the organization that continuously supervised raised funds of
117 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
the Company and the sponsor representative were informed of the above-mentioned return
of raised funds. The information disclosure obligation was timely fulfilled.
3. Situation of conducting cash management with idle raised funds and investing in related products
□Applicable √Not Applicable
4. Others
□Applicable √Not Applicable
(v) Concluding Opinions of Intermediaries on Special Inspecting and Verifying the Deposit and Use
of Raised Funds
√Applicable □Not Applicable
The deposit and use of the funds raised by LBX from 2021 non-public offering of shares
in 2025 were in line with the provisions of the Rules Governing the Listing of Stocks on
Shanghai Stock Exchange the Regulatory Rules for Raised Funds of Listed Companies the
Guidelines No. 1 on Self-regulation and Supervision for Listed Companies on the Shanghai
Stock Exchange - Standardized Operation other regulations and documents. The Company
deposited and used the raised funds in a special account and fulfilled the relevant information
disclosure obligations in time. The specific use of the raised funds was as disclosed by the
Company without disguised changes in the use of the raised funds or damage to the interests
of shareholders or illegal use of the raised funds.Notes on verified abnormalities
□Applicable √Not Applicable
(vi) Subsequent Rectification of Unauthorized Changes in the Use of Raised Funds and Illegal
Misappropriation of Raised Funds
□Applicable √Not Applicable
XV.Explanation of Other Material Matters That Have a Significant Impact on Investors' Value
Judgment and Investment Decision-making
□Applicable √Not Applicable
118 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Section VI Changes in Shareholding and Shareholder Information
I.Changes in Share Capital
(i) Statement of Share Changes
1. Statement of Share Changes
Unit: shares
Prior to change Increase or decrease in the current period (+ -) After change
Shares
Issu
conver
ance Don
Propor ted Propo
of ated
Quantity tion from Others Subtotal Quantity rtion
new shar
(%) accum (%)
shar es
ulatio
es
n fund
I. Shares subject
to restrictions on 2314441 0.30 -2314441 -2314441 0 0
sale
1. Shares held by
the state
2. Shares held by
the state-owned
legal entities
3. Shares held by
other domestic 2314441 0.30 -2314441 -2314441 0 0
entities
Including: shares
held by domestic
non-stated-owned
legal entities
Shares
held by domestic 2314441 0.30 -2314441 -2314441 0 0
natural persons
4. Shares held by
foreign entities
Including: shares
held by overseas
legal entities
Shares
held by overseas
natural persons
II. Freely tradable
75791673399.70973503973503758890236100
shares
1. RMB ordinary
75791673399.70973503973503758890236100
shares
2. Domestically
listed foreign
shares
3. Overseas listed
foreign shares
4. Other
III. Total number
760231174100-1340938-1340938758890236100
of shares
2. Explanation of Share Changes
√Applicable □Not Applicable
119 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
1. On October 29 2024 the Company held the fifth meeting of the fifth Board of
Directors and the fifth meeting of the fifth Board of Supervisors approving the Proposal on
Repurchasing and Cancelling Part of the Restricted Shares upon deliberation. Whereas 21
incentive recipients of the 2022 Restricted Stock Incentive Plan resigned or were subject to
position changes due to personal reasons and the evaluation results of the 12 incentive
recipients at the individual level were average the stocks were unlocked according to
individuals' comprehensive performance achievement rate the Company repurchased and
canceled a total of 135561 restricted stocks that had been granted to the above incentive
recipients but had not yet been unlocked. Such restricted stocks were repurchased and
cancelled on January 10 2025 and the total share capital of the Company changed from
760231174 shares to 760095613 shares. The number of shares subject to sales conditions
changed from 2314441 to 2178880.
2. On October 29 2024 the Company held the fifth meeting of the Fifth Board of
Directors and the fifth meeting of the Fifth Board of Supervisors approving the Proposal on
the Fulfillment of Vesting Conditions but Temporary Non-listing of Shares for the Second
Vesting Period of the First Grant and the First Vesting Period of the Reserved Grant under
the 2022 Restricted Share Incentive Plan upon deliberation. Among the first restricted stocks
reserved for grant 209002 restricted stocks satisfied the vesting conditions. Such restricted
stocks were listed and circulated on January 21 2025. The total share capital of the Company
remained unchanged and the number of shares subject to sales conditions changed from
2178880 to 1969878.
3. On October 29 2024 the Company held the fifth meeting of the Fifth Board of
Directors and the fifth meeting of the Fifth Board of Supervisors approving the Proposal on
the Fulfillment of Vesting Conditions but Temporary Non-listing of Shares for the Second
Vesting Period of the First Grant and the First Vesting Period of the Reserved Grant under
the 2022 Restricted Share Incentive Plan upon deliberation. Among the second restricted
stocks granted for the first time 764501 restricted stocks satisfied the vesting conditions.Such restricted stocks were listed and circulated on March 31 2025. The total share capital
of the Company remained unchanged and the number of shares subject to sales conditions
changed from 1969878 to 1205377.
4. On August 25 2025 the Company held the tenth meeting of the fifth Board of
Directors and the seventh meeting of the fifth Board of Supervisors at which the Proposal
on Repurchasing and Cancelling the Remaining Restricted Shares was approved upon
120 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
deliberation. Among the incentive recipients of the 2022 Restricted Stock Incentive Plan 32
recipients had resigned. The third vesting period was granted for the first time and the second
vesting period was reserved for the grant. The performance at the Company level was not up
to standard. The Company repurchased and cancelled a total of 1205377 restricted shares
that could not be vested. On October 23 2025 such restricted stocks were repurchased and
canceled on October 23 2025. The total share capital of the Company changed from
760095613 shares to 758890236 shares and the number of shares subject to sales
conditions changed from 1205377 to 0.
3. Effect of the change in shares on financial indicators such as earnings per share and net assets
per share for the latest year and the latest period (if any)
□Applicable √Not Applicable
4. Other contents deemed necessary by the Company or required to be disclosed by securities
regulatory authorities
□Applicable √Not Applicable
(ii) Changes in restricted shares
□Applicable √Not Applicable
Unit: shares
Num
Numbe
ber
r of
of
Number of restrict
Number of restri Reasons
shares ed
restricted cted for
Name of released from shares
shares at the share restrictio Date of restriction release
shareholder restriction on increas
beginning s at n on
sales in the ed in
of the year the sales
current year the
end
current
of the
year
year
Repurchase and
cancellation on January 10
2025 listing and circulation
of the first batch reserved
20222022
for grant on January 21
Restricted Restricte
2025 listing and circulation
Share 2314441 2314441 0 0 d Share
of the second batch granted
Incentive Incentiv
for the first time on March
Plan e Plan
31 2025 repurchase and
cancellation of the
remaining restricted stocks
on October 23 2025
Total 2314441 2314441 0 0 / /
121 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
II.Securities Issuance and Listing
(i) Issuance of securities up to the reporting period
□Applicable √Not Applicable
Explanation of securities issuance as of the reporting period (for bonds with different
interest rates during the remaining duration please explain separately):
□Applicable √Not Applicable
(ii) Changes in the Company's total number of shares shareholder structure asset and liability
structure
√Applicable □Not Applicable
1. On October 29 2024 the Company held the fifth meeting of the fifth Board of
Directors and the fifth meeting of the fifth Board of Supervisors approving the Proposal on
Repurchasing and Cancelling Part of the Restricted Shares upon deliberation. Whereas 21
incentive recipients of the 2022 Restricted Stock Incentive Plan resigned or were subject to
position changes due to personal reasons and the evaluation results of the 12 incentive
recipients at the individual level were average the stocks were unlocked according to
individuals' comprehensive performance achievement rate the Company repurchased and
canceled a total of 135561 restricted stocks that had been granted to the above incentive
recipients but had not yet been unlocked. Such restricted stocks were repurchased and
cancelled on January 10 2025 and the total share capital of the Company changed from
760231174 shares to 760095613 shares. The number of shares subject to sales conditions
changed from 2314441 to 2178880.
2. On October 29 2024 the Company held the fifth meeting of the Fifth Board of
Directors and the fifth meeting of the Fifth Board of Supervisors approving the Proposal on
the Fulfillment of Vesting Conditions but Temporary Non-listing of Shares for the Second
Vesting Period of the First Grant and the First Vesting Period of the Reserved Grant under
the 2022 Restricted Share Incentive Plan upon deliberation. Among the first restricted stocks
reserved for grant 209002 restricted stocks satisfied the vesting conditions. Such restricted
stocks were listed and circulated on January 21 2025. The total share capital of the Company
remained unchanged and the number of shares subject to sales conditions changed from
2178880 to 1969878.
3. On October 29 2024 the Company held the fifth meeting of the Fifth Board of
Directors and the fifth meeting of the Fifth Board of Supervisors approving the Proposal on
the Fulfillment of Vesting Conditions but Temporary Non-listing of Shares for the Second
Vesting Period of the First Grant and the First Vesting Period of the Reserved Grant under
122 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
the 2022 Restricted Share Incentive Plan upon deliberation. Among the second restricted
stocks granted for the first time 764501 restricted stocks satisfied the vesting conditions.Such restricted stocks were listed and circulated on March 31 2025. The total share capital
of the Company remained unchanged and the number of shares subject to sales conditions
changed from 1969878 to 1205377.
4. On August 25 2025 the Company held the tenth meeting of the fifth Board of
Directors and the seventh meeting of the fifth Board of Supervisors at which the Proposal
on Repurchasing and Cancelling the Remaining Restricted Shares was approved upon
deliberation. Among the incentive recipients of the 2022 Restricted Stock Incentive Plan 32
recipients had resigned. The third vesting period was granted for the first time and the second
vesting period was reserved for the grant. The performance at the Company level was not up
to standard. The Company repurchased and cancelled a total of 1205377 restricted shares
that could not be vested. On October 23 2025 such restricted stocks were repurchased and
canceled on October 23 2025. The total share capital of the Company changed from
760095613 shares to 758890236 shares and the number of shares subject to sales
conditions changed from 1205377.to 0.(iii) Situation of Existing Internal Employee Shares
□Applicable √Not Applicable
III.Shareholders and Actual Controller
(i) Total number of shareholders
Total number of ordinary shareholders as of
63807
the end of the reporting period
Total number of ordinary shareholders as of
the end of the previous month before the 64179
disclosure date of the Annual Report
Total number of preferred shareholders
(shareholders) whose voting rights have been 0
restored as of the end of the Reporting Period
Total number of preferred shareholders
(shareholders) whose voting rights have been
0
restored as of the end of the last month before
the disclosure date of the Annual Report
123 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(ii) Shareholding of Top Ten Shareholders and Top Ten Tradable Shareholders (or Shareholders
without Sales Restrictions) at the End of the Reporting Period
Unit: shares
Shareholding of the top 10 shareholders (excluding shares lent through refinancing)
Increase/dec Number Pledge mark or freeze
Number of
Name of rease during of Sharehol
shares held at Proportion
shareholder the restricted Share der
the end of the (%) Quantity
(Full name) reporting shares status nature
period
period held
Domesti
c Non-
LBX
State-
Pharmaceutical -18110700 180453475 23.78 0 Pledged 114140000
Owned
Group Co. Ltd.Legal
Person
Janstar Foreign
Investment 0 168013035 22.14 0 Pledged 134410428 legal
Limited person
Domesti
Chen Xiulan 0 13565698 1.79 0 None 0 c natural
person
Domesti
Shi Zhan -80900 10018811 1.32 0 None 0 c natural
person
Hong Kong
Securities
Clearing -13017145 7856850 1.04 0 None 0 Others
Company
Limited
Domesti
c Non-
Linzhi Tencent
State-
Technology Co. 0 7391046 0.97 0 None 0
Owned
Ltd.Legal
Person
China
Merchants Bank
Co. Ltd. -
Southern CSI
1000 Traded 4170111 4170111 0.55 0 None 0 Others
Open Index
Securities
Investment
Funds
China
Merchants Bank
Co. Ltd. -
Huaxia CSI
1000 Traded 2639857 2639857 0.35 0 None 0 Others
Open Index
Securities
Investment
Funds
Domesti
Peng Xiaoqin 2639030 2639030 0.35 0 None 0 c natural
person
124 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
China
Construction
Bank
Corporation -
Cathay Pharma 2261800 2261800 0.30 0 None 0 Others
Health Stock-
type Securities
Investment
Fund
Shareholding of the top 10 shareholders not subject to restrictions on sale (excluding shares lent through refinancing)
Type and number of shares
Name of shareholder Number of freely tradable shares held
Type Quantity
LBX Pharmaceutical Group Co. RMB ordinary
180453475180453475
Ltd. shares
RMB ordinary
Janstar Investment Limited 168013035 168013035
shares
RMB ordinary
Chen Xiulan 13565698 13565698
shares
RMB ordinary
Shi Zhan 10018811 10018811
shares
Hong Kong Securities Clearing RMB ordinary
78568507856850
Company Limited shares
Linzhi Tencent Technology Co. RMB ordinary
73910467391046
Ltd. shares
China Merchants Bank Co. Ltd.- Southern CSI 1000 Traded RMB ordinary
41701114170111
Open Index Securities shares
Investment Funds
China Merchants Bank Co. Ltd.- Huaxia CSI 1000 Traded Open RMB ordinary
26398572639857
Index Securities Investment shares
Funds
RMB ordinary
Peng Xiaoqin 2639030 2639030
shares
China Construction Bank
Corporation - Cathay Pharma RMB ordinary
22618002261800
Health Stock-type Securities shares
Investment Fund
Description of special account
for buy-back among the top 10 None
shareholders
Description of the above
shareholders' voting trust
None
voting proxy and waiver of
voting rights
The Company's actual controllers are Mr. Xie Zilong and Ms. Chen Xiulan
Description of the relationship
(couple). Apart from this the Company is unaware whether other relationships or
or concerted action of the above
concerted actions as defined in the Administrative Measures for the Acquisition of
shareholders
Listed Companies exist among the other shareholders mentioned above.Description of preferred
shareholders whose voting
None
rights have been restored and
the number of shares held
Note: Peng Xiaoqin held 2465130 shares of the Company through a credit account and
173900 shares of the Company through an ordinary securities account with a total of
2639030 shares in the Company. All other shareholders in the above table held shares in
ordinary accounts.Share lending through refinancing by shareholders holding more than 5% of shares Top 10
shareholders and Top 10 shareholders of freely tradable shares
□Applicable √Not Applicable
125 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Changes in shareholdings of the Top 10 shareholders and Top 10 shareholders of freely
tradable shares due to shares lent through refinancing/return compared with the previous
period
□Applicable √Not Applicable
Shareholding Quantity and Restriction Conditions of Top Ten Shareholders Subject to
Sales Restrictions
□Applicable √Not Applicable
(iii) Strategic Investors or General Legal Persons Becoming Top 10 Shareholders due to New
Share Placements
□Applicable √Not Applicable
IV.Controlling Shareholder and Actual Controller
(i) Information of controlling shareholders
1.Legal Person
√Applicable □Not Applicable
Name LBX Pharmaceutical Group Co. Ltd.Principal or Legal
Xie Zilong
Representative
Establishment Date October 25 2001
Investment management of pharmaceutical retail and
Main Business Operations
wholesale projects with own assets (excluding sales)
Equity situation of other Held 1563900 shares in Shanghai Xiaofang
domestic and foreign listed Pharmaceutical Co. Ltd. (603207); held 1.15 million
companies controlled or shares in Aim Vaccine Co. Ltd. (06660.HK)
participated in during the
reporting period
Other notes None
2.Natural person
□Applicable √Not Applicable
3.Special note on the absence of controlling shareholders of the Company
□Applicable √Not Applicable
4.Statement of the change in controlling shareholders during the reporting period
□Applicable √Not Applicable
5.Diagram of the ownership and control relationship between the Company and the controlling
shareholders
√Applicable □Not Applicable
126 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(ii) Actual controllers
1、 Legal Person
□Applicable √Not Applicable
2、 Natural person
√Applicable □Not Applicable
Full name Mr. Xie Zilong Ms. Chen Xiulan (Couple)
Nationality China
Whether the right of residence in
other countries or regions is No
obtained
Xie Zilong is Chairman of LBX Executive Director of
Main occupation and position
Pharmaceutical Group
Situation of Domestic and
Foreign Listed Companies None
Controlled in the Past 10 Years
3、 Special Explanation of the Company Not Having an Actual Controller
□Applicable √Not Applicable
4、 Statements of changes in the Company's control right during the reporting period
□Applicable √Not Applicable
5、 Block diagram of the property rights and control relationship between the Company and the
actual controllers
√Applicable □Not Applicable
127 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Xie Zilong Chen Xiulan
LBX Pharmaceutical Group Co. Ltd.LBX Pharmacy Chain Joint Stock
Company
6、 The actual controllers control the Company through trust or other asset management methods
□Applicable √Not Applicable
(iii) Other Information Introduction of Controlling Shareholder and Actual Controller
□Applicable √Not Applicable
V.Cumulative Pledged Share Quantity of the Company's Controlling Shareholder or Largest
Shareholder and Their Concerted Actors Reaching 80% or More of Their Held Company
Share Quantity
□Applicable √Not Applicable
VI.Other Institutional Shareholders Holding More Than Ten Percent
√Applicable □Not Applicable
Unit: HKD Currency: HKD
Principal or Main Business
Name of Organizatio
Legal Establishme Registered Operations or
Institutional n
Representativ nt Date capital Management
Shareholder Code
e Activities etc.Janstar Liang
September Investment
Investment Weiyan Li None 10000
19 2007 Holding
Limited Yinghua
Explanation of Hong Kong companies have no registered legal representative. The above
Situation directors represent the Company as principals performing director duties.VII.Explanation of Share Restriction and Reduction
□Applicable √Not Applicable
VIII.Specific Implementation Situation of Share Repurchase during the Reporting Period
□Applicable √Not Applicable
IX.Preference share Related Situation
□Applicable √Not Applicable
128 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Section VII Information on Bonds
I.Corporate Bonds and Debt Financing Instruments of Non-financial Enterprises
□Applicable √Not Applicable
II.Information of Convertible Corporate Bonds
□Applicable √Not Applicable
129 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Section VIII Financial Reports
I. Auditor's Report
√Applicable □Not Applicable
Auditor's Report
Ernst & Young Hua Ming (2026) Audit Report No. 70053916_P01|
LBX Pharmacy Chain Joint Stock Company
To all shareholders of LBX Pharmacy Chain Joint Stock Company:
I. Audit Opinion
We have audited the financial statements of LBX Pharmacy Chain Joint Stock Company
(the "Company") which comprise the consolidated and company balance sheets as at
December 31 2025 the consolidated and company income statements statements of
changes in shareholder's equity and cash flow statements for the year then ended and notes
to the financial statements.In our opinion the accompanying financial statements of LBX Pharmacy Chain Joint Stock
Company present fairly in all material respects the consolidated and company financial
position as at December 31 2025 and their consolidated and company operation results
and cash flows for the year then ended in accordance with the Accounting Standards for
Business Enterprises.II. Basis for Audit Opinion
We conducted our audit in accordance with the Chinese Standards on Auditing for Certified
Public Accountants. Our responsibilities under those standards are further described in the
“Certified Public Accountants' Responsibilities for the Audit of the Financial Statements”
section of our audit report. We are independent of LBX Pharmacy Chain Joint Stock
Company and have fulfilled our other ethical responsibilities in accordance with the
Standards on the Independence of Chinese Certified Public Accountants No. 1 -
Requirements for Independence in the Audit and Review of Financial Statements and the
Code of Ethics for Chinese Certified Public Accountants. We have followed the
independence requirements for audits of public interest entities in our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.III. Key Audit Matters
The key audit items are the items that are deemed to be the most important ones in the
current financial statement audit according to our professional judgment. These matters
were addressed in the context of our audit of the financial statements as a whole and in
forming our opinion thereon we do not provide a separate opinion on these matters. Our
description of how our audit addressed each matter below is provided in that context.We have fulfilled the responsibilities described in the "Responsibilities of Certified Public
Accountants for Audit of Financial Statements" section of our report including in relation
130 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
to these key audit matters. Accordingly our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the financial
statements. The results of our audit procedures including the procedures performed to
address the matters below provide the basis for our audit opinion on the accompanying
financial statements.III. Key Audit Matters (Continued)
Key Audit Matter: How the Matter Was Addressed in
the Audit:
Impairment testing of goodwill
As at December 31 2025 the book value of In response to this key audit matter
LBX Pharmacy Chain Joint Stock the audit procedures we performed
Company's goodwill was RMB mainly included:
5612990783 representing 28% of total
assets. Wherein the original value of (1) Understood evaluated and tested
goodwill is RMB 5880305976 and the management's internal controls
balance of the provision for impairment of related to goodwill impairment
goodwill is RMB 267315193. assessment;
(2) Understood the basis for
The management allocates the book value of management's identification of
goodwill to the relevant cash-generating unit CGUs or groups of CGUs and
(CGU) or groups of CGUs and compares the evaluated its reasonableness in
recoverable amount of each CGU or group conjunction with the management
of CGUs containing goodwill with its book model of LBX Pharmacy Chain Joint
value to assess whether goodwill is Stock Company's operating
impaired. The relevant CGUs or groups of activities;
CGUs are those CGUs or groups of CGUs (3) Understood the situation of the
that are expected to benefit from the third-party appraisal institution
synergies of the business combination and engaged by management and
are not larger than the reporting segments assessed its independence
determined by LBX Pharmacy Chain Joint professional qualifications and
Stock Company. The recoverable amount of competence;
a CGU is determined based on the present (4) Invited internal valuation experts
value of the estimated future cash flows of to assist us in evaluating the
the CGU. goodwill impairment testing method
adopted by management and the key
According to the Accounting Standards for parameters used in the impairment
Business Enterprises the management test including discount rates and
performs impairment testing on goodwill at perpetual growth rates etc.;
least annually. The determination of CGUs (5) Reviewed the future annual sales
or groups of CGUs to which goodwill is revenue and operating performance
allocated and the calculation of recoverable used in the cash flow forecast and
amounts involve significant management compared them with the historical
judgments and estimates. The test results operating performance of the
largely depend on the judgments made and relevant CGUs or groups of CGUs
assumptions adopted by management such especially future sales growth rates
as the determination of CGUs or groups of
131 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
CGUs forecast period revenue growth rates estimated gross profit margins
and stable period revenue growth rates related expenses etc.;
gross profit margins and discount rates. (6) Performed sensitivity tests and
Such judgments and estimates are affected analysis on the key assumptions used
by management's judgments on how to in the impairment test;
manage operating activities future market (7) Reviewed the adequacy of
and economic environments. The use of management's disclosures related to
different judgments and estimates may have goodwill impairment.a significant impact on the calculation of
goodwill impairment. This matter is
important to our audit therefore we
identified it as a key audit matter.The accounting policies and estimates related to
goodwill impairment assessment and related
financial statement disclosures are set out in Note
V. 27. Long-term Asset Impairment Note V. 39.Other Significant Accounting Policies and
Estimates and Note VII. 27. Goodwill.IV. Other Information
The management of LBX Pharmacy Chain Joint Stock Company is responsible for the
other information. The other information comprises the information included in the annual
report but does not include the financial statements and our audit report thereon.Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the
other information and in doing so consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.If based on the work we have performed we concluded that there is a material
misstatement of other information we are required to report that fact. We have nothing to
report in this regard.V. Responsibilities of Management and Those Charged with Governance for the
Financial Statements
The management is responsible for the preparation and fair presentation of the financial
statements in accordance with the Accounting Standards for Business Enterprises and for
designing implementing and maintaining necessary internal control to enable the
preparation of financial statements that are free from material misstatement whether due to
fraud or error.In preparing the financial statements management is responsible for assessing LBX
Pharmacy Chain Joint Stock Company's ability to continue as a going concern disclosing
as applicable matters related to going concern and using the going concern basis of
132 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
accounting unless management either intends to liquidate the Company or to cease
operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing LBX Pharmacy Chain Joint
Stock Company's financial reporting process.VI. Responsibilities of Certified Public Accountants for Audit of Financial Statements
Our objective is to obtain reasonable assurance as to whether the overall financial
statements are free from material misstatement whether due to fraud or error and to issue
Auditor's Report that contain audit opinions. Reasonable assurance is a high level of
assurance but it cannot guarantee that an audit performed in accordance with the Auditing
Standards can always figure out any existing material misstatements. Misstatements may be
caused by fraud or error. Misstatement is generally considered to be material if it is
reasonably expected that the misstatement alone or aggregated may affect the financial
decisions based on these financial statements made by the users.As part of an audit in accordance with the Auditing Standards for Chinese Certified Public
Accountants we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements
whether due to fraud or error design and perform audit procedures responsive to those
risks and obtain audit evidence that is sufficient and appropriate to provide a basis for the
audit opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error as fraud may involve collusion forgery
intentional omissions misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
(4) Make a conclusion about the appropriateness of the going-concern assumption used by
the Management. Also based on the audit evidence obtained conclude whether a material
uncertainty exists related to events or conditions that may cast significant doubt on LBX
Pharmacy Chain Joint Stock Company's ability to continue as a going concern. If we
conclude that a material uncertainty exists we are required to draw attention in our audit
report to the related disclosures in the financial statements or if such disclosures are
inadequate to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our audit report. However future events or conditions may cause
LBX Pharmacy Chain Joint Stock Company to cease to continue as a going concern.
(5) Evaluate the overall presentation (including the disclosures) structure and content of
the financial statements and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within LBX Pharmacy Chain Joint Stock Company to express
an opinion on the financial statements. We are responsible for guiding supervising and
performing group audit and assume sole liability for the audit opinions.
133 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
We communicate with those charged with governance regarding among other matters the
planned scope and timing of the audit and significant audit findings including any
significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence and communicate with them all
relationships and other matters that may reasonably be thought to bear on our
independence and where applicable related safeguards.Among the matters communicated with Those Charged with Governance we identify
which one is the most important to audit of the financial statements during this period and
thus form the key audit matters. We describe these matters in the auditor's report unless
disclosure of these matters is prohibited by laws and regulations or in rare cases it is
reasonably anticipated that the negative consequence arising from communication of
certain matter in the auditor's report overrides the benefit to the public we identify that we
shall not communicate such matters in the auditor's report.Ernst & Young Hua Ming LLP Chinese CPA: Wang Shijie
(Engagement Partner)
Chinese CPA: Liang Chang'e
Beijing China April 22 2026
II. Financial Statements
Consolidated Balance Sheet
December 31 2025
Prepared by: LBX Pharmacy Chain Joint Stock CompanyLBX Pharmacy Chain Joint Stock
Company
Unit: RMB Currency: RMB
Item Notes December 31 2025 December 31 2024
Current assets:
Cash and bank balances 2358429285 2379865319
Deposit reservation for
balance
Funds lent
Trading financial assets
134 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Derivative financial
assets
Notes receivable 58033940 76074821
Accounts receivable 2107724650 2340489925
Accounts receivable 15269288
5612871
financing
Prepayments 127750815 170391318
Premiums receivable
Reinsurance accounts
receivable
Reserves for reinsurance
contract receivable
Other receivables 215188071 265281348
Of which: interest
receivable
Dividends
receivable
Redemptory monetary
capital for sale
Inventories 3652252469 3573538507
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due 37528487
41225587
within one year
Other current assets 264435192 215072326
Total current assets 8830652880 9073511339
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables 66161336 79389411
Long-term equity 85352717
81283270
investments
Other equity instrument 35877723
35768123
investments
Other non-current 12093150
6963496
financial assets
Investment property 242880980 316529855
Fixed assets 1348308487 1365648334
Construction in progress 1734300 107795924
Productive biological
assets
Oil-and-gas assets
Right-of-use assets 2049366982 2502807163
Intangible assets 802566730 841812406
Including: Data resources
135 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Development
14773607
expenditures
Including: Data resources
Goodwill 5612990783 5756158728
Long-term deferred 734121761
609448600
expenses
Deferred income tax 116703610
133973303
assets
Other non-current assets 8530627 17051558
Total non-current 11971342340
11014750624
assets
Total assets 19845403504 21044853679
Current liabilities:
Short-term loans 697299622 1656884090
Borrowings from central
bank
Funds borrowed
Trading financial
liabilities
Derivative financial
liabilities
Notes payable 5008269907 4546258111
Accounts payable 1746997615 2008964593
Advances from 16853246 18293769
customers
Contract liabilities 217575573 195193795
Financial assets sold for
repurchase
Deposits from customers
and other banks
Receiving from
vicariously traded securities
Receiving from
vicariously sold securities
Payroll payable 455209144 430424756
Taxes and dues payable 152684505 191184507
Other payables 626911001 653535414
Of which: Interest
payable
Dividends 15203873 208088
payable
Service charges and
commissions payable
Reinsurance accounts
payable
Liabilities held for sale
Non-current liabilities 1227214169 1204356466
due within one year
136 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Other current liabilities 15196091 14443599
Total current liabilities 10164210873 10919539100
Non-current liabilities:
Reserves for insurance
contracts
Long-term loans 1434968318 1397226137
Bonds payable
Including: Preference
shares
Perpetual bonds
Lease liabilities 1204831000 1522516044
Long-term payables
Long-term employee
compensation payable
Provisions
Deferred income 10556274 12925575
Deferred tax liabilities 34744543 36696534
Other non-current
liabilities
Total non-current 2685100135 2969364290
liabilities
Total liabilities 12849311008 13888903390
Total owner's equity (or shareholder's equity):
Paid-in capital (or capital 758890236 760231174
stock)
Other equity instruments
Including: Preference
shares
Perpetual bonds
Capital reserve 1694612672 1970466686
Less: Treasury stock 16935356
Other comprehensive 15231092 15231092
income
Special reserve
Surplus reserve 350789036 301549640
General risk reserve
Undistributed profits 3715868949 3550314034
Total owner's equity (or 6535391985 6580857270
shareholder's equity)
attributable to parent
company
Minority equity 460700511 575093019
Total owner's equity 6996092496 7155950289
(or shareholder's equity)
Total liabilities and 19845403504 21044853679
owner's equity (or
shareholder's equity)
137 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Principal of the Company: Xie Zilong Person in Charge of Accounting Work: Chen
Lishan Person in Charge of Accounting Department: Shi Lei
Balance Sheet of Parent Company
December 31 2025
Prepared by: LBX Pharmacy Chain Joint Stock CompanyLBX Pharmacy Chain Joint Stock
Company
Unit: RMB Currency: RMB
Item Notes December 31 2025 December 31 2024
Current assets:
Cash and bank balances 2003966001 2064268383
Trading financial assets
Derivative financial
assets
Notes receivable
Accounts receivable 539946258 515726687
Accounts receivable
financing
Prepayments 31677641 32673995
Other receivables 4736766562 5009698877
Of which: interest
receivable
Dividends
277086528198830
receivable
Inventories 508188001 467483217
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due 9290909
9458268
within one year
Other current assets 25335304 24364116
Total current assets 7855338035 8123506184
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 21363104 22319183
Long-term equity 6309092736
6710413621
investments
Other equity instrument 35308123
35308123
investments
Other non-current 5774109
financial assets
Investment property 250581978 256390126
Fixed assets 476301399 400154596
Construction in progress 1705998 56654546
Productive biological
assets
138 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Oil-and-gas assets
Right-of-use assets 425057405 486621414
Intangible assets 157024255 160285902
Including: Data resources
Development
expenditures
Including: Data resources
Goodwill 527221668 527221668
Long-term deferred 169457320
137236917
expenses
Deferred income tax 39013461
57770813
assets
Other non-current assets 4736576 7236084
Total non-current 8475529268
8804721857
assets
Total assets 16660059892 16599035452
Current liabilities:
Short-term loans 279806357
Trading financial
liabilities
Derivative financial
liabilities
Notes payable 5140678200 5587633477
Accounts payable 155943549 51096966
Advances from 2144697
1834487
customers
Contract liabilities 34933801 20113000
Payroll payable 120646509 117599031
Taxes and dues payable 22350003 26989206
Other payables 2992646764 2772020283
Of which: Interest
payable
Dividends
payable
Liabilities held for sale
Non-current liabilities 417377528
531496745
due within one year
Other current liabilities 1466208 747518
Total current liabilities 9001996266 9275528063
Non-current liabilities:
Long-term loans 1433378318 1397226137
Bonds payable
Including: Preference
shares
Perpetual bonds
Lease liabilities 383053003 421441914
Long-term payables
139 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Long-term employee
compensation payable
Provisions
Deferred income 4213002 4315135
Deferred tax liabilities
Other non-current
liabilities
Total non-current 1822983186
1820644323
liabilities
Total liabilities 10822640589 11098511249
Total owner's equity (or shareholder's equity):
Paid-in capital (or capital 760231174
758890236
stock)
Other equity instruments
Including: Preference
shares
Perpetual bonds
Capital reserve 3431936166 3435977166
Less: Treasury stock 16935356
Other comprehensive 15231092
15231092
income
Special reserve
Surplus reserve 350789036 301549640
Undistributed profits 1280572773 1004470487
Total owner's equity 5500524203
5837419303
(or shareholder's equity)
Total liabilities and 16599035452
owner's equity (or 16660059892
shareholder's equity)
Principal of the Company: Xie Zilong Person in Charge of Accounting Work: Chen
Lishan Person in Charge of Accounting Department: Shi Lei
Consolidated Income Statement
January to December 2025
Unit: RMB Currency: RMB
Item Notes 2025 FY2024
I. Total operating income 22236615347 22357610195
Of which: Operating income 22236615347 22357610195
Interest income
Premium earned
Fee and commission
income
II. Total operating costs 21301442246 21403375972
Including: operating costs 15054734735 14942332455
Interest expense
140 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Fee and commission
expense
Refunded premiums
Net claims paid
Net provision for
insurance liabilities
Expenditures for policy
dividends
Reinsurance expenses
Taxes and surcharges 77888030 80902989
Selling expenses 4699222568 4947435885
Administrative expenses 1288100931 1257665102
R&D expenses 51071549 2013597
Financial expenses 130424433 173025944
Including: Interest 130270754 178247831
expenses
Interest income 13369752 20103612
Add: Other income 79206710 78365349
Investment income (loss 896794 2728107
indicated with "-")
Including: Income from -4069447 2831526
investments in associates and
joint ventures
Gain on
derecognition of financial assets
measured at amortized cost
Exchange gains (losses
indicated with "-")
Net gains (losses indicated
with "-") on net investment
hedges
Gains from change in fair
value (losses indicated with "-")
Credit impairment loss -18515634 -6022024
(loss indicated with "-")
Asset impairment loss -251362691 -111202534
(loss indicated with "-")
Asset disposal income -3542326 -4530258
(loss indicated with "-")
III. Operating profits (loss 741855954 913572863
indicated with "-")
Add: non-operating income 27315265 14027387
Less: non-operating expenses 13002329 11628766
IV. Profit before tax (total loss 756168890 915971484
indicated with "-")
Less: income tax expenses 215719391 230853330
V. Net profit (net loss indicated 540449499 685118154
with "-")
(I) By operating continuity
141 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
1. Net profits from going 540449499 685118154
concern (net loss indicated with "-
")
2. Net profits from
discontinued operation (net loss
indicated with "-")
(II) By ownership attribution
1. Net profits attributable to 381846593 519063405
the parent company’s
shareholders (net losses indicated
with “-”)
2. Minority interest (net loss 158602906 166054749
indicated with "-")
VI. Net amount of other
comprehensive income after tax
(I) Other comprehensive
income attributable to owners of
the parent company net of tax
1. Other comprehensive
income that will not be
reclassified into profit or loss
(1) Remeasurement changes in
defined benefit plans
(2) Other comprehensive
income that cannot be carried
over to profit or loss under equity
method
(3) Changes in the fair value of
other equity instrument
investments
(4) Changes in the fair value of
the enterprise's own credit risk
2. Other comprehensive
income that will be re-classified
into profit or loss
(1) Other comprehensive
income under equity method that
can be transferred to profit or loss
(2) Changes in the fair value of
other debt investment
(3) Amount of financial assets
reclassified into other
comprehensive income
(4) Credit impairment
provision of other debt
investments
(5) Hedging reserve of cash
flows
142 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(6) Translation differences of
foreign currency financial
statements
(7) Others
(II) Post-tax net amount of
other comprehensive income
attributable to minority
shareholders
VII. Total comprehensive income 540449499 685118154
(I) Total comprehensive 381846593 519063405
income attributable to owners of
the parent company
(II) Total comprehensive 158602906 166054749
income attributable to minority
shareholders
VIII. Earnings per share (EPS)
(I) Basic earnings per share 0.68
0.50
(RMB/share)
(II) Diluted EPS (RMB/share) 0.50 0.68
For business combinations involving enterprises under common control occurring during
the period the net profit realized by the combined party before the combination was: RMB
0 and the net profit realized by the combined party in the previous period was: RMB 0.
Principal of the Company: Xie Zilong Person in Charge of Accounting Work: Chen
Lishan Person in Charge of Accounting Department: Shi Lei
Income Statement of Parent Company
January to December 2025
Unit: RMB Currency: RMB
Item Notes 2025 FY2024
I. Operating income 4431224110 4478468650
Less: operating costs 2937107639 2963766302
Taxes and surcharges 13557939 13239862
Selling expenses 1006270284 1066348428
Administrative expenses 519614680 431615514
R&D expenses
Financial expenses 58081873 74310998
Including: Interest 65779126 84375489
expenses
Interest income 14399218 18902422
Add: Other income 13240441 13493473
Investment income (loss 568085450 230447487
indicated with "-")
Including: Income from -4679115 2831526
investments in associates and
joint ventures
143 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Gain on
derecognition of financial assets
measured at amortized cost
Net gains (losses indicated
with "-") on net investment
hedges
Gains from change in fair
value (losses indicated with "-")
Credit impairment loss -6829649 -119140
(loss indicated with "-")
Asset impairment loss -1170003 -1130064
(loss indicated with "-")
Asset disposal income -2468476 465017
(loss indicated with "-")
II. Operating profits (losses 467449458 172344319
indicated with "-")
Add: non-operating income 13235718 636483
Less: non-operating expenses 5755734 3523051
III. Total profit (total loss 474929442 169457751
indicated with "-")
Less: income tax expenses -17464522 -15377062
IV. Net profit (Net loss indicated 492393964 184834813
with "-")
(I) Net profits from going 492393964 184834813
concern (net loss indicated with "-
")
(II) Net profits from
discontinued operation (net loss
indicated with "-")
V. Net amount of other
comprehensive income after tax
(I) Other comprehensive
incomes that cannot be re-
classified in profit or loss
1. Remeasurement of
changes in defined benefit plans
2. Other comprehensive
income under equity method that
cannot be transferred to profit or
loss
3. Changes in fair value of
other equity instrument
investment
4. Changes in the fair value
of the enterprise's own credit risks
(II) Other comprehensive
income that will be reclassified to
profit or loss
144 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
1. Other comprehensive
income under equity method that
can be transferred to profit or loss
2. Fair value changes of
other debt investments
3. Amount reclassified to
other comprehensive income
from financial assets
4. Credit impairment
provision for other debt
investments
5. Cash flow hedge reserve
6. Foreign currency
translation differences
7. Other
VI. Total comprehensive income 492393964 184834813
VII. Earnings per share (EPS):
(I) Basic earnings per share
(RMB/share)
(II) Diluted EPS
(RMB/share)
Principal of the Company: Xie Zilong Person in Charge of Accounting Work: Chen
Lishan Person in Charge of Accounting Department: Shi Lei
Consolidated Cash Flow Statement
January to December 2025
Unit: RMB Currency: RMB
Item Notes 2025 FY2024
I. Cash flow from operating activities:
Cash received from sales of
goods and rendering of 25984775525 25590231980
services
Net increase in deposits
from customers and interbank
Net increase in loans from
the central bank
Net increase in funds
borrowed from other financial
institutions
Cash received from
original insurance contract
premiums
Net cash received from
reinsurance business
145 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Net increase in
policyholder savings and
investment funds
Cash received from
interest fees and
commissions
Net increase in borrowed
funds
Net increase in funds from
repurchase agreements
Net cash received from
securities trading agency
Refund of tax and levies
Other cash received
110003888103940541
relating to operating activities
Subtotal of cash inflows
2609477941325694172521
of operating activities
Cash paid for purchasing
1780307527718046362509
goods and receiving services
Net increase in customer
loans and advances
Net increase in deposits in
the central bank and interbank
Cash paid for original
insurance contract claims
Net increase in the lending
funds
Cash paid for interest fees
and commissions
Cash paid for policy
dividends
Cash paid to and for
34826049213774532506
employees
Various tax payments 895132887 976067264
Other cash paid relating to
771332579870751445
operating activities
Subtotal of cash
outflows from operating 22952145664 23667713724
activities
Net cash flows from
31426337492026458797
operating activities
II. Cash flows from investing activities:
Cash received from return
9362391
on investments
Cash received from
3010350
investment income
Net cash received from
82491978242106
disposal of fixed assets
146 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
intangible assets and other
long-term assets
Net cash recovered from
disposal of subsidies and 25938620
other operating units
Other cash received
relating to investing activities
Subtotal of cash inflows
2062193834180726
of investing activities
Cash paid for acquisition
and construction of fixed
253436810507503709
assets intangible assets and
other long-term assets
Cash paid for investment 644455 19719041
Net increase in pledge
loans
Net cash paid for
acquisition of subsidiaries and 3200000 134833847
other business entities
Other cash paid relating to
investing activities
Subtotal of cash
outflows from investing 257281265 662056597
activities
Net cash flows from
-236659327-627875871
investing activities
III. Cash flows from financing activities:
Cash received from capital
6317463075060
contributions
Including: cash received by
subsidiaries from minority 631746 3075060
shareholders
Cash received from loans 1904097357 3360910303
Other cash received related
to financing activities
Subtotal of cash inflows
19047291033363985363
of financing activities
Cash paid for repayment of
26991771442449061239
debts
Cash paid for distributing
dividends and profits or 369763560 883337195
repaying interest
Including: dividends and
profits paid by subsidiaries to 145144389 169332688
minority shareholders
Other cash paid relating to
15846570961379935359
financing activities
147 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Subtotal of cash
outflows from financing 4653597800 4712333793
activities
Net cash flows from
-2748868697-1348348430
financing activities
IV. Effect of exchange rate
changes on cash and cash
equivalents
V. Net increase in cash and
15710572550234496
cash equivalents
Add: opening balance of
986735653936501157
cash and cash equivalents
VI. Closing balance of cash
1143841378986735653
and cash equivalents
Principal of the Company: Xie Zilong Person in Charge of Accounting Work: Chen
Lishan Person in Charge of Accounting Department: Shi Lei
Cash Flow Statement of Parent Company
January to December 2025
Unit: RMB Currency: RMB
Item Notes 2025 FY2024
I. Cash flow from operating activities:
Cash received from sales of
goods and rendering of 4409174933 4627063020
services
Refund of tax and levies
Other cash received
8703607153001218
relating to operating activities
Subtotal of cash inflows
44962110044680064238
of operating activities
Cash paid for purchasing
30344436963185285195
goods and receiving services
Cash paid to and for
764310399832303906
employees
Various tax payments 13830170 46768453
Other cash paid relating to
404577923367558221
operating activities
Subtotal of cash outflows
42171621884431915775
from operating activities
Net cash flows from
279048816248148463
operating activities
II. Cash flows from investing activities:
Cash received from return
92300001095882
on investments
Cash received from
551298852280032305
investment income
148 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Net cash received from
disposal of fixed assets
6125381239353
intangible assets and other
long-term assets
Net cash recovered from
disposal of subsidies and
other operating units
Other cash received
284919060488074586
relating to investing activities
Subtotal of cash inflows
851573293769442126
of investing activities
Cash paid for acquisition
and construction of fixed
114823848125223618
assets intangible assets and
other long-term assets
Cash paid for investment 386750000 82197000
Net cash paid for
acquisition of subsidiaries and
other business entities
Other cash paid relating to
investing activities
Subtotal of cash outflows
501573848207420618
from investing activities
Net cash flows from
349999445562021508
investing activities
III. Cash flows from financing activities:
Cash received from capital
contributions
Cash received from loans 411750000 680000000
Other cash received related
206270739
to financing activities
Subtotal of cash inflows
618020739680000000
of financing activities
Cash paid for repayment of
527051676353176410
debts
Cash paid for distributing
dividends and profits or 218049328 699989964
repaying interest
Other cash paid relating to
265688709416212098
financing activities
Subtotal of cash outflows
10107897131469378472
from financing activities
Net cash flows from
-392768974-789378472
financing activities
IV. Net increase in cash and
23627928720791499
cash equivalents
Add: opening balance of
749501322728709823
cash and cash equivalents
149 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
V. Closing balance of cash
985780609749501322
and cash equivalents
Principal of the Company: Xie Zilong Person in Charge of Accounting Work: Chen
Lishan Person in Charge of Accounting Department: Shi Lei
150 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Consolidated Statement of Changes in Owner's Equity
January to December 2025
Unit: RMB Currency: RMB
2025
Equity attributable to owners of the parent company
Other equity
instruments
Pe Sp
Paid-in Total Item rp Other eci Minority
capital Pref Less: Genera Undistr owner's
et Capital compre al Surplus equity
(or eren Treasury l risk ibuted Others Subtotal
equity
ua Othe reserve hensive res reserve
capital ce stock reserve profits
l rs income erv
stock) shar
bo e
es
nd
s
I. Closing balance of 76023 19704666 15231 30154964 35503 658085 5750930 715595028
16935356
previous year 1174 86 092 0 14034 7270 19 9
Add: Changes in
accounting policies
Correction of
prior period errors
Others
II. Opening balance 76023 19704666 15231 30154964 35503 658085 5750930 715595028
16935356
of the current year 1174 86 092 0 14034 7270 19 9
III. Increase or
decrease for the - - -
current period 13409 -16935356 49239396 454652 1143925
2758540144915159857793
(decrease indicated 38 85 08
with "－")
(I) Total
381843818461586029
comprehensive 540449499
659359306
income
(II) Capital invested -
115534
and reduced by 13409 -4041000 -16935356 631746 12185163
17
owners 38
151 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
1. Ordinary shares
invested by the 631746 631746
owners
2. Capital contributed
by holders of other
equity instruments
3. Amounts of share-
-
based payments 115534
13409-4041000-1693535611553417
recognized into 17
38
shareholder's equity
4. Other
---
(III) Profit -
49239396216291670521601401
distribution 327192456
167828274
-
1. Appropriation of
4923939649239
surplus reserve
396
2. Appropriation of
general risk reserve
3. Distribution to - - -
-
owners (or 16705 167052 1601401
327192456
shareholders) 2282 282 74
4. Other
--
(IV) Internal transfer - -
2718131134869
within owner's equity 271813014 385300000
01486
1. Conversion of
capital reserve into
capital (or share
capital)
2. Surplus reserve
transferred to capital
(or share capital)
3. Surplus reserve
used to cover losses
4. Actuarial gains and
losses on defined
benefit plans
transferred to
retained earnings
152 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
5. Other
comprehensive
income transferred to
retained earnings
--
--
6. Others 271813 1134869
271813014385300000
01486
(V) Special reserve
1. Appropriation in
the current period
2. Use in this period
(VI) Other
IV. Closing balance
75889169461261523135078903371586535394607005699609249
of the current
0236720926689491985116
period
FY2024
Equity attributable to owners of the parent company
Paid-in
Item Other equity instruments
Total
Other Minority
capital Less: Genera Undistri owner's
Capital compre Special Surplus equity
(or Prefere Perpetu Treasur l risk buted Others Subtotal equity
nce al Others reserve hensive reserve reserve capital y stock reserve profits
shares bonds income
stock)
58493
I. Closing balance of 21741 43256 15231 28306 368710 67012 5878042 7289039
3
previous year 56022 912 092 6159 6079 35576 85 861
136
Add: Changes in
accounting policies
Correction of
prior period errors
Others
36876701
II. Opening balance of 58493 21741 43256 15231 28306 58780 7289039
10602355
the current year 3136 56022 912 092 6159 4285 861
7976
153 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
III. Increase or - -
decrease for the - - -
175291848313671203-
current period 20368 26321 12711 13308957
8038481
(decrease indicated 9336 556 9204 7830 266 2
with "－") 5 6
(I) Total 5190 5190 16605 68511815
comprehensive 6340 6340 4
income 4749 5 5
(II) Capital invested - -
1752922141
and reduced by 17947 26321 3075060 25216836
8038776
owners 7818 556
1. Ordinary shares -
17543
invested by the 17543 3075060 3075060
7963
owners 7963
2. Capital contributed
by holders of other
equity instruments
3. Amounts of share-
---
based payments 22141
13992403982632122141776
recognized into 776
555556
shareholder's equity
4. Other
-
---
(III) Profit 18483 6558
637371167805780517769
distribution 481 5545 969 27 6
0
-
1. Appropriation of 18483
1848
surplus reserve 481
3481
2. Appropriation of
general risk reserve
-
3. Distribution to 6373 - - -
owners (or 637371 1678057 80517769
shareholders) 7196 969 27 6
9
4. Other
154 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
---
(IV) Internal transfer -
24211242111403534
within owner's equity 38246866
5185188
1. Conversion of
capital reserve into
capital (or share
capital)
2. Surplus reserve
transferred to capital
(or share capital)
3. Surplus reserve
used to cover losses
4. Actuarial gains and
losses on defined
benefit plans
transferred to retained
earnings
5. Other
comprehensive
income transferred to
retained earnings
----
6. Others 24211 24211 14035 382468
51851834866
(V) Special reserve
1. Appropriation in
the current period
2. Use in this period
(VI) Other
IV. Closing balance 76023 19704 16935 15231 30154 355031 65808 5750930 7155950
of the current period 1174 66686 356 092 9640 4034 57270 19 289
Principal of the Company: Xie Zilong Person in Charge of Accounting Work: Chen Lishan Person in Charge of Accounting
Department: Shi Lei
Statement of Changes in Owner's Equity of Parent Company
January to December 2025
Unit: RMB Currency: RMB
155 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
2025
Paid-in Other equity instruments Other Less: Total
Item capital (or Capital comprehen Special Surplus Undistribu
capital Preference Perpetual
Treasury owner's
Others reserve sive reserve reserve ted profits stock equity
stock) shares bonds income
I. Closing balance of previous 76023117 3435977 1523109 3015496 1004470 5500524
16935356
year 4 166 2 40 487 203
Add: Changes in accounting
policies
Correction of prior
period errors
Others
II. Opening balance of the 76023117 3435977 1523109 3015496 1004470 5500524
16935356
current year 4 166 2 40 487 203
III. Increase or decrease for -1340938 -4041000 - 4923939 2761022
33689510
the current period (decrease 16935356 6 86
0
indicated with "－")
(I) Total comprehensive 4923939 49239396
income 64 4
(II) Capital invested and -1340938 -4041000 -
11553418
reduced by owners 16935356
1. Ordinary shares invested by
the owners
2. Capital contributed by
holders of other equity
instruments
3. Amounts of share-based
-
payments recognized into -1340938 -4041000 11553418
16935356
shareholder's equity
4. Other
--
4923939
(III) Profit distribution 2162916 16705228
6.00
78.002
-
1. Appropriation of surplus 4923939
4923939
reserve 6
6
--
2. Distribution to owners (or
167052216705228
shareholders)
822
3. Other
156 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(IV) Internal transfer within
owner's equity
1. Conversion of capital
reserve into capital (or share
capital)
2. Surplus reserve transferred
to capital (or share capital)
3. Surplus reserve used to
cover losses
4. Actuarial gains and losses
on defined benefit plans
transferred to retained
earnings
5. Other comprehensive
income transferred to retained
earnings
6. Others
(V) Special reserve
1. Appropriation in the current
period
2. Use in this period
(VI) Other
IV. Closing balance of the 75889023 3431936 1523109 3507890 1280572 5837419
current period 6 166 2 36 773 303
FY2024
Paid-in Other equity instruments Other Less: Total
Item capital (or Capital comprehen Special Surplus Undistribu
capital Preference Perpetual
Treasury owner's
Others reserve sive reserve reserve ted profits
shares bonds stock equity stock) income
I. Closing balance of previous 58493313 3615454 43256912 1523109 2830661 1475491 5930919
year 6 984 2 59 124 583
Add: Changes in accounting
policies
Correction of prior
period errors
Others
II. Opening balance of the 58493313 3615454 43256912 1523109 2830661 1475491 5930919
current year 6 984 2 59 124 583
157 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
III. Increase or decrease for 17529803 - - 1848348 - -
the current period (decrease 8 17947781 26321556 1 4710206 43039538
indicated with "－") 8 37 0
(I) Total comprehensive 1848348 18483481
income 13 3
17529803--22141776
(II) Capital invested and
81794778126321556
reduced by owners
8
17543796-
1. Ordinary shares invested
317543796
by the owners
3
2. Capital contributed by
holders of other equity
instruments
3. Amounts of share-based -139925 -4039855 - 22141776
payments recognized into 26321556
shareholder's equity
4. Other
1848348--
(III) Profit distribution 1 6558554 63737196
509
1848348-
1. Appropriation of surplus
11848348
reserve
1
--
2. Distribution to owners (or
637371963737196
shareholders)
699
3. Other
(IV) Internal transfer within
owner's equity
1. Conversion of capital
reserve into capital (or share
capital)
2. Surplus reserve transferred
to capital (or share capital)
3. Surplus reserve used to
cover losses
4. Actuarial gains and losses
on defined benefit plans
transferred to retained
earnings
158 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
5. Other comprehensive
income transferred to retained
earnings
6. Others
(V) Special reserve
1. Appropriation in the
current period
2. Use in this period
(VI) Other
IV. Closing balance of the 76023117 3435977 16935356 1523109 3015496 1004470 5500524
current period 4 166 2 40 487 203
Principal of the Company: Xie Zilong Person in Charge of Accounting Work: Chen Lishan Person in Charge of Accounting
Department: Shi Lei
159 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
III. Company Basic Information
1、 Company Profile
√Applicable □Not Applicable
LBX Pharmacy Chain Joint Stock Company (hereinafter referred to as the “Company”) is a
joint stock limited company registered in Changsha Hunan Province the People's Republic
of China established in October 2001. The RMB ordinary A shares issued by the Company
were listed and traded on Shanghai Stock Exchange on April 23 2015 (Stock Code:
603883). The headquarters of the Company is located at No. 808 Qingzhuhu Road Kaifu
District Changsha City Hunan Province.The main business scope of the Company and its subsidiaries (hereinafter referred to as the
"Group") is as follows: pharmaceutical retail and wholesale food sales daily necessities
sales life and beauty services health consulting services clinic services pharmaceutical
Internet information service information consulting services (excluding licensing
information consulting services) information technology consulting services enterprise
management consulting and advertisement production; advertisement design agency
marketing planning; market research leasing etc.The Company's largest shareholder is LBX Pharmaceutical Group Co. Ltd. (hereinafter
referred to as "Pharmaceutical Group") and the actual controllers are Mr. Xie Zilong and
Ms. Chen Xiulan (couple).These financial statements were approved for issuance by the Company's Board of
Directors resolution on April 22 2026.IV. Basis of Preparation of Financial Statements
1、 Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for
Business Enterprises--Basic Standards and the specific accounting standards
interpretations and other relevant stipulations enacted and revised afterwards from theMinistry of Finance (collectively referred to as “Accounting Standards for BusinessEnterprises”). In addition these financial statements also disclose relevant financial
information in accordance with the Rules Governing the Format and Content of
Information Disclosure by Companies Offering Securities to the Public No. 15 - General
Provisions on Financial Reports.
2、 Going concern
√Applicable □Not Applicable
On December 31 2025 the Group's current liabilities exceeded its current assets by
RMB 1333557993. The Company has entered into certain financing arrangements. The
Company has made certain financing arrangements. Based on the management's prepared
cash flow forecast for the Group for the next 12 months and the financing facilities
obtained by the Group the management estimates that the Group will have sufficient funds
to repay maturing debts and maintain normal operations in the coming year. Therefore the
Group's management prepared these financial statements on a going concern basis.
160 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
V. Significant accounting policies and accounting estimates
Tips for specific accounting policies and accounting estimates:
√Applicable □Not Applicable
The Group has formulated specific accounting policies and accounting estimates based on
its actual production and operation characteristics mainly reflected in bad debt provisions
for receivables inventory impairment provisions depreciation of fixed assets amortization
of intangible assets amortization of long-term deferred expenses impairment of investment
properties and impairment of goodwill etc.
1.Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of the
Accounting Standards for Business Enterprises and present fairly and completely
information regarding the Company's financial position operating results changes in
owners' equity and cash flows.
2.Accounting Period
The Company's fiscal year is from January 1 to December 31 of the Gregorian calendar.
3.Operating Cycle
□Applicable √Not Applicable
4.Functional currency
The Company uses RMB as functional currency.
5.Methods and basis for determining the criteria for significance
√Applicable □Not Applicable
Item Criteria for significance
Significant recovery or reversal amount of Individual recovery or reversal amount
bad debt provision for receivables accounts for more than 10% of the total
amount of various receivables or the amount
is greater than RMB 30 million
Significant actual write-off of receivables Individual write-off amount is greater than
RMB 10 million
Significant prepayments Individual prepayment aged over 1 year
accounts for more than 10% of the total
prepayment amount and the amount is
greater than RMB 30 million
Significant contract liabilities Individual contract liability aged over 1 year
accounts for more than 10% of the total
contract liability amount and the amount is
greater than RMB 30 million
Significant accounts payable Individual account payable aged over 1 year
accounts for more than 1% of the total
accounts payable amount and the amount is
161 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
greater than RMB 30 million
Significant other payables Individual other payable aged over 1 year
accounts for more than 5% of the total other
payables amount and the amount is greater
than RMB 30 million
Significant construction in progress Ending balance exceeds 1% of the Group's
total assets or the budget for a single project
is greater than RMB 300 million
Significant R&D expenditures Ending balance exceeds 1% of the Group's
total assets or the budget for a single project
is greater than RMB 300 million
Subsidiaries with significant non- Minority shareholders' equity accounts for
controlling interests more than 2% of the Group's net assets or
minority shareholders' profit or loss of a
single subsidiary accounts for more than
10% of the Group's consolidated net profit
Significant non-cash investing and Activities not involving current period cash
financing activities receipts and expenditures with an amount
greater than 10% of the corresponding total
cash inflow or outflow
6.Accounting methods of business combination involving enterprises under common control and
not involving enterprises under common control
√Applicable □Not Applicable
Business combinations are classified into business combinations involving enterprises
under common control and business combinations not involving enterprises under common
control.A business combination involving enterprises under common control is a business
combination in which all of the combining enterprises are ultimately controlled by the same
party or parties both before and after the combination and that control is not transitory. The
assets and liabilities (including goodwill formed from the ultimate controlling party's
acquisition of the acquiree) obtained by the combining party in a business combination
involving enterprises under common control are accounted for based on their book value in
the ultimate controlling party's financial statements on the combination date. The difference
between the book value of the net assets obtained by the combining party and the book
value of the combination consideration paid (or the total par value of shares issued) is
adjusted against the share premium in capital reserves. If the share premium is insufficient
to absorb the difference retained earnings are adjusted.A merger involving enterprises that are not under the ultimate control of the same party or
the same group of parties before and after the merger is considered a business combination
not under common control. Identifiable assets liabilities and contingent liabilities of the
acquiree obtained in a business combination not under common control are measured at
their fair values as of the acquisition date. The excess of the cost of a business combination
over the fair value of the identifiable net assets acquired is recognized as goodwill and
subsequently measured at cost less any accumulated impairment losses. If the combination
cost is less than the share of the fair value of the identifiable net assets acquired from the
acquiree a review shall be conducted of the measurement of the fair value of each
162 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
identifiable asset liability and contingent liability acquired from the acquiree as well as
the combination cost. If after the review the combination cost still remains less than the
share of the fair value of the identifiable net assets acquired the difference shall be
recognized in the current profit or loss.
7.Criteria for control and method of preparation of consolidated financial statements
√Applicable □Not Applicable
The scope of consolidated financial statements is determined based on control and includes
the financial statements of the company and all its subsidiaries. A subsidiary is an entity
controlled by the Company (including enterprises separable parts of investees structured
entities controlled by the Company etc.). The investor can control the investee if and only
if the investor possesses the following three elements: the investor has power over the
investee; the investor is exposed to variable returns from involvement with the investee;
and the investor is able to use its power over the investee to influence the amount of those
returns.If the subsidiary uses accounting policies or accounting periods different from those of the
company necessary adjustments shall be made to the subsidiary’s financial statements in
the preparation of the consolidated financial statements to align with the accounting
policies and accounting periods. All intra-group assets liabilities equity income expenses
and cash flows arising from transactions between companies within the Group are
eliminated in full on consolidation.The portion of the current period loss attributable to minority interests that exceeds the
minority interests' share in the beginning balance of the subsidiary's equity is still charged
against minority interests.For subsidiaries acquired through business combinations not under common control the
operating results and cash flows of the acquiree shall be included in the consolidated
financial statements from the date the group obtains control until the group’s control over
them ends. While preparing the consolidated financial statements the Company shall adjust
the subsidiary’s financial statements on the basis of the fair values of the identifiable
assets liabilities and contingent liabilities recognized on the purchase date.For subsidiaries obtained through business combinations under common control the
operating results and cash flows of the acquired party shall be included in the consolidated
financial statements from the beginning of the period of the combination. When preparing
comparative consolidated financial statements adjustments to related items in prior period
financial statements are made as if the reporting entity formed after consolidation had
existed continuously since the final controlling party began exercising control.If changes in relevant facts and circumstances lead to changes in one or more of the
elements of control the Group reassesses whether it controls the investee.Changes in minority interests that do not result in a loss of control are accounted for as
equity transactions.
8.Classification of joint arrangements and accounting methods for joint operations
□Applicable √Not Applicable
163 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
9.Criteria for determining cash and cash equivalents
Cash equivalent refers to short-term (usually due within three months from the acquisition
date) and highly liquid investments held that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of change in value.
10.Translation of foreign currency transactions and foreign currency statements
√Applicable □Not Applicable
Foreign currency transactions entered into by the Group are translated into the functional
currency amounts.Foreign currency transactions are translated into the functional currency using the spot
exchange rates prevailing at the dates of the transactions. On the balance sheet date the
foreign currency monetary items are translated at the spot exchange rate prevailing on that
date. The resulting settlement and translation differences of monetary items except for
those arising from foreign currency-specific borrowings related to the acquisition and
construction of assets that meet capitalization criteria which are accounted for in
accordance with the principle of capitalizing borrowing costs are recognized in the current
profit or loss. Foreign currency non-monetary items measured at historical cost shall
continue to be translated using the exchange rate at the date of initial recognition without
changing their carrying amount in the bookkeeping currency. Non-monetary items in
foreign currencies measured as per fair value shall be converted as per spot exchange rate at
the date of determination of fair value. Difference incurred thereby shall be included into
the current profit and loss or other comprehensive income in accordance with nature of
non-monetary items.Foreign currency cash flows are translated using the average exchange rate for the period
when the cash flows occur (unless exchange rate fluctuations render the use of this rate
inappropriate in which case the spot exchange rate at the date of the cash flow is used).The impact of exchange rate changes on cash is treated as a reconciliation item and is
presented separately in the cash flow statement.
11.Financial instruments
√Applicable □Not Applicable
A financial instrument is a contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
(1) Recognition and derecognition of financial instruments
The Group recognizes a financial asset or a financial liability when it becomes a party to
the contractual provisions of the instrument.A financial asset (or part of a financial asset or part of a group of similar financial assets) is
derecognized (i.e. removed from the balance sheet) when the following conditions are met:
(1) The rights to receive cash flows from the financial asset expire;
(2) the rights to receive cash flows from the financial asset have been transferred or an
obligation has been assumed under a 'pass-through' arrangement to pay the collected cash
164 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
flows in full to a third party without material delay; and either substantially all the risks and
rewards of ownership of the financial asset have been transferred or substantially all the
risks and rewards of ownership of the financial asset have been neither transferred nor
retained but control of the financial asset has been relinquished.If the responsibilities of financial liabilities have been fulfilled cancelled or expired the
financial liabilities will be derecognized. If an existing financial liability is replaced by
another financial liability from the same lender on substantially different terms or the
terms of an existing liability are substantially modified such replacement or modification is
treated as the derecognition of the original liability and the recognition of a new liability
and the difference is recognized in profit or loss.The financial assets that are purchased and sold in the conventional manner are recognized
and derecognized by the trading day for the purpose of accounting. The regular way of
buying and selling financial assets refers to purchasing or selling financial assets in
accordance with the terms of a contract where the contract specifies that the delivery of the
financial assets is to occur according to the timing typically determined by regulations or
market conventions. Trading day is the date that the Group commits to purchase or sell the
financial asset.
(2) Classification and measurement of financial assets
At initial recognition the Group's financial assets are classified based on the Group's
business model for managing the financial assets and the contractual cash flow
characteristics of the financial assets into: financial assets measured at amortized cost
financial assets measured at fair value through other comprehensive income (FVOCI) and
financial assets measured at fair value through profit or loss (FVTPL). All relevant
financial assets affected are reclassified only when the Group changes its business model
for managing financial assets.Financial assets are measured at fair value at initial recognition. However accounts
receivable or notes receivable arising from the sale of goods or provision of services that do
not contain a significant financing component or do not consider financing components of
no more than one year are initially measured at the transaction price.For financial assets at FVTPL related transaction costs are directly recognized in profit or
loss. Transaction costs related to other categories of financial assets are included in their
initial recognition amount.Subsequent measurement of financial assets depends on their classification:
Debt instrument investments measured at amortized cost
The Company classifies a financial asset as a financial asset at amortized cost if the
following conditions are met: the Company's business model for managing the financial
asset is based on the collection of contractual cash flows; the contractual terms of the
financial asset stipulate that the cash flows generated on a specific date are solely payments
of principal and interest based on the amount of the principal outstanding. Interest income
of such financial assets is recognized by the effective interest rate method and the gains or
losses arising from derecognition modification or impairment are included in the current
profit or loss.
165 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Debt instrument investments measured at FVOCI
A financial asset is classified as measured at FVOCI if both of the following conditions are
met: the Group's business model for managing the financial asset is achieved by both
collecting contractual cash flows and selling the financial asset; the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding. The Company recognizes the
interest income of such financial assets using the effective interest method. Except that
interest income impairment loss and exchange difference are recognized as the current
profit or loss the other changes in fair value are included in other comprehensive income.At the time of derecognition of financial assets the cumulative gains or losses previously
included in other comprehensive income are transferred out from other comprehensive
income and included in the current profit or loss.Equity instrument investments measured at FVOCI
The Group irrevocably elects to designate some non-trading equity instrument investments
as financial assets measured at FVOCI. Only relevant dividend income (excluding dividend
income clearly recovered as part of the investment cost) is recognized in profit or loss.Subsequent changes in fair value are recognized in other comprehensive income and no
impairment provision is required. When such financial assets are derecognized
accumulated gains or losses that are previously recognized in other comprehensive income
are carried over from other comprehensive income and are recognized in the retained
earnings.Financial assets at FVTPL
Except for financial assets at amortized cost and financial assets at FVTOCI the Company
classifies financial assets as financial assets at FVTPL. Such financial assets are
subsequently measured at fair value and all changes in fair value are included in the
current profit or loss.
(3) Classification and measurement of financial liabilities
At initial recognition the Group's financial liabilities are classified as: financial liabilities at
FVTPL and financial liabilities measured at amortized cost. For financial liabilities at
FVTPL relevant transaction costs are directly included into the current profit or loss; for
financial liabilities measured at amortized cost relevant transaction costs are included into
the initial recognition amount.Subsequent measurement of financial liabilities depends on their classification:
Financial liabilities measured at amortized cost
For such financial liabilities subsequent measurement is at amortized cost using the
effective interest method.
(4) Impairment of financial instruments
Method for determining ECL and accounting treatment method
The Group assesses impairment and recognizes a loss allowance for financial assets
measured at amortized cost based on expected credit losses (ECL).
166 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
For receivables that do not contain a significant financing component the Group applies
the simplified measurement approach and measures the loss allowance at an amount equal
to lifetime ECL.For financial assets other than those using the simplified measurement approach mentioned
above the Group assesses at each balance sheet date whether their credit risk has increased
significantly since initial recognition. If the credit risk has not increased significantly since
initial recognition (Stage 1) the Group measures the loss allowance at an amount equal to
12-month ECL and calculates interest income based on the book balance and effective
interest rate. If the credit risk has increased significantly since initial recognition but is not
yet credit-impaired (Stage 2) the Group measures the loss allowance at an amount equal to
lifetime ECL and calculates interest income based on the book balance and effective
interest rate. If credit impairment has occurred after initial recognition (Stage 3) the Group
measures the loss allowance at an amount equal to lifetime ECL and calculates interest
income based on amortized cost and effective interest rate. For financial instruments that
have low credit risk at the balance sheet date the Group assumes that their credit risk has
not increased significantly since initial recognition.Disclosures regarding the Group's criteria for determining significant increase in credit risk
and the definition of credit-impaired assets can be found in Note XII.1.The method used by the Group to measure the ECL of financial instruments reflects factors
including: an unbiased probability-weighted average amount determined by evaluating a
range of possible outcomes; the time value of money; and reasonable and supportable
information that is available without undue cost or effort at the reporting date about past
events current conditions and forecasts of future economic conditions.Portfolio categories and determination basis for providing impairment provisions based on
credit risk characteristics
The Group considers the credit risk characteristics of different customers. Based on
common risk characteristics and aging portfolio it assesses the ECL of financial assets
measured at amortized cost and debt instrument investments measured at FVOCI. The
portfolios divided by the Group are: Medical insurance receivables portfolio Enterprise
trade receivables portfolio Hospital and health center trade receivables and other
portfolios.Aging calculation methodology for recognizing credit risk feature portfolios based on aging
The Group determines the aging based on the revenue recognition date.-
Judgment criteria for individually providing bad debt impairment provisions on an
individual basis
If the credit risk characteristics of a counterparty are significantly different from other
counterparties in the portfolio a loss provision is provided individually for the receivables
due from that counterparty.Write-off of impairment provisions
167 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
When the Group no longer reasonably expects to recover all or part of the contractual cash
flows of a financial asset the Group directly writes down the book balance of that financial
asset.
(5) Offsetting of financial instruments
Financial assets and financial liabilities are presented net in the balance sheet if and only if
the following conditions are met: there is a legally enforceable right to set off the
recognized amounts and that legal right is currently enforceable; there is an intention to
settle on a net basis or to realize the asset and settle the liability simultaneously.
(6) Financial guarantee contracts
Financial guarantee contracts refer to the contracts based on which the issuer shall
indemnify the contract holders suffering from losses the specific amounts when the specific
debtor is unable to repay the due debts on the terms of the debt instrument. Financial
guarantee contracts are initially measured at fair value. Except for financial guarantee
contracts designated as financial liabilities at FVTPL other financial guarantee contracts
are subsequently measured at the higher of the amount of the ECL provision determined at
the balance sheet date and the initial recognition amount less the cumulative amortization
determined in accordance with revenue recognition principles.
(7) Transfer of financial assets
The Group derecognizes a financial asset if it transfers substantially all the risks and
rewards of ownership of the financial asset to the transferee; if it retains substantially all the
risks and rewards of ownership of the financial asset it does not derecognize the financial
asset.If the Group neither transfers nor retains substantially all the risks and rewards of
ownership of the financial asset it accounts for the situation as follows: if it relinquishes
control over the financial asset it derecognizes the financial asset and recognizes the assets
and liabilities created; if it does not relinquish control over the financial asset it recognizes
the related financial asset to the extent of its continuing involvement in the transferred
financial asset and recognizes the associated liability.If involvement continues by providing financial guarantee for transfer of financial assets
the assets arising from the continuous involvement shall be recognized based on the book
value of financial asset or the financial guarantee amount whichever is lower. Financial
guarantee amount refers to the highest amount of repayment required among all
considerations received.
12.Notes receivable
√Applicable □Not Applicable
The types of portfolios and the basis for determining the bad debt provision based on
the combination of credit risk characteristics.√Applicable □Not Applicable
168 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
See Section X Financial Report V. Significant Accounting Policies and Accounting
Estimates Point 11 Financial Instruments - Impairment of Financial Instruments.Aging calculation methodology for recognizing credit risk feature portfolios based on
aging
√Applicable □Not Applicable
See Section X Financial Report V. Significant Accounting Policies and Accounting
Estimates Point 11 Financial Instruments - Impairment of Financial Instruments.Judgmental criteria for individual bad debt provision according to individual items
√Applicable □Not Applicable
See Section X Financial Report V. Significant Accounting Policies and Accounting
Estimates Point 11 Financial Instruments - Impairment of Financial Instruments.
13.Accounts receivable
√Applicable □Not Applicable
The types of portfolios and the basis for determining the bad debt provision based on
the combination of credit risk characteristics.√Applicable □Not Applicable
See Section X Financial Report V. Significant Accounting Policies and Accounting
Estimates Point 11 Financial Instruments - Impairment of Financial Instruments.Aging calculation methodology for recognizing credit risk feature portfolios based on
aging
√Applicable □Not Applicable
See Section X Financial Report V. Significant Accounting Policies and Accounting
Estimates Point 11 Financial Instruments - Impairment of Financial Instruments.Judging standards for determining individual accrual for bad debt provision on an
individual basis
√Applicable □Not Applicable
See Section VIII Financial Report V. Significant Accounting Policies and Accounting
Estimates Point 11 Financial Instruments - Impairment of Financial Instruments.
14.Accounts receivable financing
√Applicable □Not Applicable
The types of portfolios and the basis for determining the bad debt provision based on
the combination of credit risk characteristics.√Applicable □Not Applicable
See Section X Financial Report V. Significant Accounting Policies and Accounting
Estimates Point 11 Financial Instruments - Impairment of Financial Instruments.Aging calculation methodology for recognizing credit risk feature portfolios based on
aging
√Applicable □Not Applicable
See Section X Financial Report V. Significant Accounting Policies and Accounting
Estimates Point 11 Financial Instruments - Impairment of Financial Instruments.Judgmental criteria for individual bad debt provision according to individual items
169 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
√Applicable □Not Applicable
See Section X Financial Report V. Significant Accounting Policies and Accounting
Estimates Point 11 Financial Instruments - Impairment of Financial Instruments.
15.Other receivables
√Applicable □Not Applicable
The types of portfolios and the basis for determining the bad debt provision based on
the combination of credit risk characteristics.√Applicable □Not Applicable
See Section X Financial Report V. Significant Accounting Policies and Accounting
Estimates Point 11 Financial Instruments - Impairment of Financial Instruments.Aging calculation methodology for recognizing credit risk feature portfolios based on
aging
√Applicable □Not Applicable
See Section X Financial Report V. Significant Accounting Policies and Accounting
Estimates Point 11 Financial Instruments - Impairment of Financial Instruments.Judgmental criteria for individual bad debt provision according to individual items
√Applicable □Not Applicable
See Section X Financial Report V. Significant Accounting Policies and Accounting
Estimates Point 11 Financial Instruments - Impairment of Financial Instruments.
16.Inventories
√Applicable □Not Applicable
Inventory category delivery pricing method inventory system and amortization
method for low-value consumables and packaging materials
√Applicable □Not Applicable
Inventories include goods in stock finished goods raw materials low-value consumables
and work in progress etc.Inventories are initially measured at cost. Inventory costs comprise purchase costs
processing costs and other costs. The cost of inventories issued is calculated using the
weighted average method. The cost of finished goods and work in progress includes raw
materials direct labor and manufacturing overhead allocated systematically based on
normal production capacity.The perpetual inventory system is used for inventory accounting.Recognition criteria and calculation method for inventory write-down
√Applicable □Not Applicable
At the balance sheet date inventories are measured at the lower of cost and net realizable
value. If cost exceeds net realizable value a provision for inventory impairment is
recognized in profit or loss. Net realizable value refers in the daily activities to the
estimated selling price of inventory net of the costs that are expected to be incurred till
completion estimated selling expenses and relevant taxes. When providing for inventory
write-down raw materials are provided for by category while finished goods and goods in
stock are provided for on an individual inventory item basis. For inventories related to
product series produced and sold in the same region with the same or similar ultimate use
170 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
or purpose and which are difficult to measure separately from other items the provision
for inventory falling price reserve is made on a combined basis.Low-value consumables are amortized using the one-off write-off method.The basis for determining inventory write-down by portfolio portfolio categories
determination basis and the net realizable value of various inventories are as follows:
□Applicable √Not Applicable
The calculation methods and basis for determining the net realizable value of each
aging portfolio based on aging
□Applicable √Not Applicable
17.Contract assets
□Applicable √Not Applicable
18.Non-current assets or disposal groups held for sale
□Applicable √Not Applicable
Criteria and accounting policy for classifying non-current assets or disposal groups as
held for sale
□Applicable √Not Applicable
Criteria for recognition and presentation of discontinued operations
□Applicable √Not Applicable
19.Long-term equity investments
√Applicable □Not Applicable
Long-term equity investments include equity investments in subsidiaries and associates.Long-term equity investments are initially measured at cost upon acquisition. For long-term
equity investments acquired through a business combination involving enterprises under
common control the initial investment cost is the share of the acquiree's owner's equity in
the ultimate controlling party's consolidated financial statements at the combination date
based on book value; the difference between the initial investment cost and the book value
of the combination consideration is adjusted against capital reserves (if insufficient
retained earnings are adjusted). For long-term equity investments acquired through a
business combination not involving enterprises under common control the initial
investment cost is the cost of combination (for business combinations not involving
enterprises under common control achieved in stages through multiple transactions the
initial investment cost is the sum of the book value of the equity investment in the acquiree
held before the acquisition date and the cost of the additional investment on the acquisition
date). For long-term equity investments acquired by means other than business
combination the initial investment cost is determined as follows: if acquired by cash
payment the initial investment cost is the actual purchase price paid and directly related
expenses taxes and other necessary expenditures incurred to acquire the long-term equity
171 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
investment; if acquired by issuing equity securities the initial investment cost is the fair
value of the equity securities issued.Long-term equity investments in investee companies over which the company has control
are accounted for using the cost method in the company’s individual financial statements.Control refers to having power over the investee exposure or rights to variable returns
from its involvement with the investee and the ability to use its power over the investee to
affect the amount of those returns.Under the cost method long-term equity investments are valued at their initial investment
cost. The cost of long-term equity investments is adjusted for any additional investments or
withdrawals. The dividends or profits declared to distribute by the investee will be
recognized as investment income for the period.Long-term equity investments where the Group has significant influence over the investee
are accounted for using the equity method. Significant influence refers to the power to
participate in the financial and operating policy decisions of the investee but without the
ability to control or jointly control the formulation of these policies with others.Under the equity method if the initial investment cost of a long-term equity investment
exceeds the investor's share of the fair value of the investee's identifiable net assets at the
time of investment the excess is included in the initial investment cost of the long-term
equity investment; if the initial investment cost is less than the investor's share of the fair
value of the investee's identifiable net assets the difference is recognized in profit or loss
for the current period and the cost of the long-term equity investment is adjusted
accordingly.When applying the equity method after acquiring long-term equity investments the
investor recognizes investment gains or losses and other comprehensive income based on
their share of the investee’s realized net profit or loss and other comprehensive income and
adjusts the carrying amount of the long-term equity investment accordingly. When
recognizing the share of the investee's net profit or loss it is confirmed after adjusting the
investee's net profit based on the fair value of the investee's identifiable assets etc. at the
time of investment in accordance with the Group's accounting policies and accounting
period and after eliminating the portion of unrealized intra-group transaction gains or
losses attributable to the investor according to the attributable proportion (however if the
intra-group transaction loss is an asset impairment loss it should be recognized in full)
unless the assets invested or sold constitute a business. The portion entitled based on the
profits or cash dividends declared and distributed by the investee shall be calculated and
the carrying amount of the long-term equity investment shall be correspondingly reduced.The Group recognizes its share of the investee's net losses to the extent that the book value
of the long-term equity investment and other long-term interests that in substance
constitute a net investment in the investee are reduced to zero unless the Group has an
obligation to absorb further losses. For other changes in shareholder's equity of the investee
other than net profit or loss other comprehensive income and profit distribution the book
value of the long-term equity investment is adjusted and included in shareholder's equity.
172 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
20.Investment property
(1). If the cost measurement model is adopted:
Depreciation or amortization method
Investment property is property held to earn rentals or for capital appreciation or both.Investment property is initially measured at cost. Subsequent expenditures related to
investment property are included in the cost of the investment property if it is probable that
the economic benefits associated with the asset will flow to the entity and its cost can be
measured reliably. Otherwise they are recognized in profit or loss when incurred.The Group uses the cost model for subsequent measurement of investment property and
applies the same depreciation or amortization methods as for fixed assets and intangible
assets. Depreciation or amortization is calculated for buildings and land use rights based on
their estimated useful lives and residual value rates.
21.Fixed assets
(1). Conditions for recognition
√Applicable □Not Applicable
Fixed assets will be recognized only when the related economic benefits are likely to flow
into the Group and the costs can be measured reliably. Subsequent expenditures related to
fixed assets that meet the recognition criteria shall be capitalized as part of the cost of the
fixed assets and the carrying amount of the replaced component shall be derecognized;
otherwise such expenditures shall be recognized as an expense in the current period or
included in the cost of the related asset based on the beneficiary.Fixed assets are initially measured at cost. The cost of acquiring fixed assets includes the
purchase price related taxes and fees and other expenses directly attributable to the asset
incurred before the fixed asset is ready for its intended use. Depreciation of fixed assets is
calculated using the straight-line method. The useful lives estimated residual value rates
and annual depreciation rates for various types of fixed assets are as follows:
(2). Depreciation method
√Applicable □Not Applicable
Depreciation Depreciation Residual value Annual
Category
method period (years) rate depreciation rate
Building and Straight-line 20 - 50 years 5% 1.90%-4.75%
construction method
Machinery and Straight-line 10 5% 9.50%
equipment method
Transportation Straight-line 5 years 5% 19%
vehicles method
Electronic and Straight-line 5 years 5% 19%
office method
equipment
173 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
22.Construction in progress
√Applicable □Not Applicable
The cost of construction in progress is determined based on actual project expenditures
including all necessary project expenditures incurred during the construction period
borrowing costs eligible for capitalization before the project reaches its intended use
condition and other related expenses.Construction in progress is transferred to fixed assets intangible assets and other non-
current assets when it reaches its intended use condition based on the following standards:
Criteria for capitalization
Earlier of actual commencement of use /
Building and construction completion acceptance
Earlier of actual commencement of use /
Machinery equipment and others completion of installation acceptance
23.Borrowing costs
√Applicable □Not Applicable
Borrowing costs that are directly attributable to the acquisition construction or production
of a qualifying asset are capitalized; other borrowing costs are recognized in profit or loss
for the current period.Capitalization of borrowing costs commences when capital expenditures and borrowing
costs have been incurred and the activities necessary to prepare the asset for its intended
use or sale are in progress.Capitalization of borrowing costs ceases when the qualifying asset is ready for its intended
use or sale. Borrowing costs incurred thereafter are recognized in profit or loss for the
current period.During the capitalization period the amount of interest capitalized for each accounting
period is determined as follows: for specific borrowings the amount is determined by the
actual interest expense incurred during the period less any temporary deposit interest
income or investment income. For general borrowings utilized the amount is determined
by multiplying the weighted average of asset expenditures exceeding the specific
borrowings by the weighted average interest rate of the general borrowings utilized.If the acquisition construction or production of a qualifying asset is interrupted abnormally
for reasons other than the procedures necessary to prepare the asset for its intended use or
sale and the interruption period exceeds 3 consecutive months the capitalization of
borrowing costs is suspended. Borrowing costs incurred during the interruption period are
recognized as expenses in profit or loss for the current period until the acquisition
construction or production activities resume.
24.Biological assets
□Applicable √Not Applicable
174 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
25.Oil-and-gas assets
□Applicable √Not Applicable
26.Intangible assets
(1). Useful life and its basis for determination estimation amortization method or review
procedures
√Applicable □Not Applicable
Trademark rights are treated as intangible assets with indefinite useful lives. Such
intangible assets are not amortized. Regardless of whether there are indications of
impairment they are tested for impairment at least annually; their useful lives are reviewed
in each accounting period. If there is evidence that the useful life is finite they are
accounted for according to the policy for intangible assets with finite useful lives.Other intangible assets are amortized using the straight-line method over their useful lives.Their useful lives are as follows:
Useful life Determination basis
Land use rights 40 - 50 years Term of land use right
Software and patent 5 - 10 years Shorter of patent right term /
rights others estimated useful life
(2). Scope of collection of research and development costs and related accounting treatment
methods
√Applicable □Not Applicable
The Group distinguishes expenditures on internal research and development projects into
research phase expenditures and development phase expenditures. The research stage
expenditures are included in the current profit or loss when occurred. Expenditures in the
development phase are capitalized only if all the following conditions are met: it is
technically feasible to complete the intangible asset so that it will be available for use or
sale; there is an intention to complete the intangible asset and use or sell it; the way the
intangible asset will generate economic benefits including demonstrating the existence of a
market for the output of the intangible asset or the intangible asset itself or if it is to be
used internally the usefulness of the intangible asset; there are adequate technical financial
and other resources to complete the development and the ability to use or sell the intangible
asset; the expenditure attributable to the intangible asset during its development phase can
be measured reliably.When the corresponding projects of the Group meet the above conditions the work in the
research stage has been completed and it is expected that the intangible assets formed by
the development of the projects have proven internal usefulness the technical scheme has
been determined and can bring economic benefits to the enterprise etc. the projects will
enter the development stage after approval by the Group upon review and the expenditures
incurred in the development stage will be capitalized after the above capitalization
conditions are met. The intangible assets will be carried forward when the projects are
completed and accepted to have reached the expected usable state.
175 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
27.Impairment of long-term assets
√Applicable □Not Applicable
For impairment of assets other than inventories deferred income tax and financial assets
the following method is used: at the balance sheet date assess whether there are indications
that an asset may be impaired. If impairment indications exist the Group estimates its
recoverable amount and conducts an impairment test. For goodwill arising from business
combinations intangible assets with indefinite useful lives and intangible assets not yet
ready for use regardless of whether impairment indications exist an impairment test is
conducted at least at the end of each year.The recoverable amount of an asset is determined by the higher of the net amount after
deducting the disposal costs from the asset's fair value and the present value of the asset's
estimated future cash flow. The Group estimates the recoverable amount based on
individual assets; if it is difficult to estimate the recoverable amount of an individual asset
the recoverable amount is determined based on the asset group to which the asset belongs.The identification of the asset group is based on whether the cash flow generated from the
asset group is independent of the major cash inflows from other assets or asset groups.When the recoverable amount of an asset or CGU is lower than its book value the Group
writes down its book value to the recoverable amount. The write-down amount is
recognized in profit or loss for the current period and a corresponding asset impairment
provision is recognized.For the impairment test of goodwill the carrying amount of goodwill shall be allocated to
the relevant asset group or groups of asset groups from the acquisition date using a
reasonable method. The relevant cash-generating unit or combination of cash-generating
units is one that can benefit from the synergy effects of the business combination and is no
larger than the operating segment identified by the group.Compare the book value of the CGU or group of CGUs containing goodwill with its
recoverable amount. If the recoverable amount is lower than the book value the
impairment loss amount first reduces the book value of goodwill allocated to the CGU or
group of CGUs and then reduces the book value of other assets in the CGU or group of
CGUs proportionally based on the book value of each asset other than goodwill.Once the above asset impairment loss is recognized it is not reversed in subsequent
accounting periods.
28.Long-term deferred expenses
√Applicable □Not Applicable
Long-term deferred expenses include improvements to leased fixed assets under operating
leases and other expenses already incurred but to be borne by the current and future
periods with an amortization period exceeding one year. They are recorded at the actual
amount incurred and amortized using the straight-line method over the benefit period or the
stipulated period. If the item of long-term deferred expenses cannot benefit the Group in the
subsequent accounting period the remaining value that has not been amortized shall be
totally transferred into the current profit or loss.
176 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
29.Contract liabilities
√Applicable □Not Applicable
The Group lists contract assets or contract liabilities in the balance sheet according to the
relationships between performance of contractual obligations and customer payment. The
Group will offset the contract assets and contract liabilities under the same contract and
present them in net amount.
(1) Contract liabilities
An obligation to transfer goods or services to a customer for whom the Group has received
consideration from the customer or has an unconditional right to receive consideration
before transferring the goods or services is recognized as a contract liability.
30.Employee compensation
(1). Accounting method for short-term compensation
√Applicable □Not Applicable
During the accounting period in which the employee provides services the actually
incurred short-term compensation are recognized as a liability and included in profit or loss
for the current period or the cost of related assets.
(2). Accounting method for post-employment benefits
√Applicable □Not Applicable
The Group's employees participate in pension insurance and unemployment insurance
managed by the local government. Corresponding expenditures are included in the cost of
related assets or profit or loss for the current period when incurred.
(3). Accounting method for termination benefits
√Applicable □Not Applicable
If the Group provides termination benefits to employees the employee benefit liability
arising from termination benefits is recognized and included in profit or loss for the current
period at the earlier of the following dates: when the enterprise cannot unilaterally
withdraw the termination benefits provided due to the termination of employment
relationship plan or redundancy proposal; when the enterprise recognizes costs or expenses
related to restructuring involving the payment of termination benefits.
(4). Accounting method for other long-term employee benefits
□Applicable √Not Applicable
31.Provisions
□Applicable √Not Applicable
32.Share-based payment
√Applicable □Not Applicable
177 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Share-based payment is classified into equity-settled share-based payment and cash-settled
share-based payment. Equity-settled share-based payment is a transaction in which the
Group receives services in exchange for shares or other equity instruments as consideration.Equity-settled share-based payments in exchange for employee services are measured at the
fair value of the equity instruments granted to employees. If the options granted vest
immediately the fair value is recognized in relevant costs or expenses on the grant date
with a corresponding increase in capital reserves; if the options vest only after completing
services during the vesting period or meeting specified performance conditions then on
each balance sheet date during the vesting period based on the best estimate of the number
of equity instruments expected to vest the services received in the current period are
recognized in relevant costs or expenses at the grant date fair value with a corresponding
increase in capital reserves.
33.Preference shares perpetual bonds and other financial instruments
□Applicable √Not Applicable
34.Revenue
(1). Disclosure of accounting policies used for revenue recognition and measurement by type of
business
√Applicable □Not Applicable
The Group recognizes revenue when it has satisfied a performance obligation in a contract
i.e. when the customer obtains control of the related goods or services. Obtaining control
of the related goods or services means being able to direct the use of the goods or the
provision of the service and obtain substantially all the remaining benefits from it.
(1) Contracts for the sale of goods
The Group's contracts for the sale of goods with customers usually involve retail and
wholesale business of goods. Revenue is recognized at the point of customer acceptance
based on comprehensive consideration of the following factors: the present right to receive
payment for the goods the transfer of significant risks and rewards of ownership of the
goods the transfer of legal title of the goods the transfer of physical possession of the
goods and customer acceptance of the goods. For retail business the Group sells goods
directly to customers through directly-operated stores and e-commerce and recognizes
revenue when the customer obtains the goods. For wholesale business the Group sells
goods to purchasers in various locations. The Group transports the products to the agreed
delivery location according to the contract and recognizes revenue after the purchaser
accepts the goods and both parties sign the goods handover document.The Group grants reward points to customers when selling goods. Customers can redeem
reward points for free or discounted goods. This reward points program provides customers
with a material right. The Group treats it as a separate performance obligation allocates a
portion of the transaction price to the reward points based on the relative proportion of the
standalone selling prices of the goods or services provided and the reward points and
recognizes revenue when the customer obtains control of the goods or services redeemed
with points or when the points expire.
178 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
For contracts containing a significant financing component the Group determines the
transaction price based on the amount payable assuming the customer pays in cash when
obtaining control of the goods. Using the discount rate that discounts the nominal amount
of the contract consideration to the cash selling price of the goods the difference between
the determined transaction price and the promised consideration amount in the contract is
amortized using the effective interest method over the contract period. For contracts where
the interval between the customer obtaining control of the goods and the customer paying
the price is expected to be no more than one year the Group does not consider the
significant financing component existing in the contract.The amount of consideration to which the Group expects to be entitled for transferring
goods to customers is considered as the transaction price which is determined in
accordance with the contract terms taking into account past business practices. Some
contracts of the Group stipulate that when customers purchase more than a certain quantity
of goods they can enjoy certain discounts which are directly offset against the amount
payable by customers when purchasing goods in the current period. The Group makes the
best estimate of the discount based on the expected value or the most likely amount to the
extent that the estimated transaction price after discount does not exceed the amount to
which it is highly probable that there will be no significant reversal of the accumulated
recognized revenue when the related uncertainty is eliminated and is re-estimated at each
balance sheet date.
(2) Contracts for the rendering of services
The Group fulfills performance obligations by providing services such as information
consulting and promotional activities to customers. Since the customer simultaneously
obtains and consumes the economic benefits brought by the Group's performance as the
Group performs the Group treats it as a performance obligation satisfied over time and
recognizes revenue based on the progress of performance unless the progress of
performance cannot be reasonably determined. The Group determines the progress of
service provision using the input method. When the progress of performance cannot be
reasonably determined if the costs incurred by the Group are expected to be recovered
revenue is recognized based on the amount of costs incurred until the progress of
performance can be reasonably determined.
(3) Franchise fee contracts
When a franchised store passes the Group's review meets the Group's requirements and
formally signs a franchise agreement the franchise fee is collected according to the
contract. The one-time franchise fee collected when the franchisee cooperates with the
Group is recognized as revenue from an intellectual property license satisfied over time.
(2). Different revenue recognition and measurement approaches for similar businesses adopting
different business models
□Applicable √Not Applicable
35.Contract costs
□Applicable √Not Applicable
179 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
36.Government grants
√Applicable □Not Applicable
Government grants are recognized when the conditions attached to them can be met and the
grants can be received. Government grants in the form of monetary assets are measured at
the amount received or receivable. If the government grants are non-monetary assets such
grants shall be measured at fair value; if the fair value cannot be obtained reliably such
government grants shall be measured at the nominal amount.Asset-related government grants are those specified in government documents for the
acquisition construction or formation of long-term assets in other ways; if the government
documents are unclear judgment is based on the basic conditions necessary to obtain the
grant. Grants requiring the acquisition or construction of long-term assets as a basic
condition are treated as asset-related government grants; others are treated as income-
related government grants.Income-related government grants used to compensate for related costs expenses or losses
in future periods are recognized as deferred income and included in profit or loss for the
current period during the periods when the related costs expenses or losses are recognized;
grants used to compensate for related costs expenses or losses already incurred are directly
included in profit or loss for the current period.Asset-related government grants are recognized as deferred income and included in profit
or loss on a reasonable and systematic basis over the useful life of the related asset.However government grants measured at a nominal amount are directly included in profit
or loss for the current period. If the related asset is sold transferred scrapped or destroyed
before the end of its useful life the remaining balance of related deferred income is
transferred to profit or loss for the period of disposal.
37.Deferred tax assets/deferred tax liabilities
√Applicable □Not Applicable
The Group recognizes deferred income tax using the balance sheet liability method based
on temporary differences arising between the book value and tax base of assets and
liabilities at the balance sheet date as well as temporary differences arising from the
difference between the book value and tax base of items not recognized as assets and
liabilities but whose tax base can be determined according to tax law.Deferred tax liabilities are recognized for all taxable temporary differences unless:
(1) The taxable temporary difference arises from the initial recognition of goodwill or the
initial recognition of an asset or liability in a transaction that: is not a business combination;
at the time of the transaction affects neither accounting profit nor taxable profit or
deductible loss; and the initial recognition of the asset and liability does not give rise to
equal taxable and deductible temporary differences;
(2) For taxable temporary differences associated with investments in subsidiaries and
associates the timing of the reversal of the temporary difference can be controlled and it is
probable that the temporary difference will not reverse in the foreseeable future.
180 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Deferred tax assets are recognized for deductible temporary differences deductible losses
that can be carried forward to subsequent years and tax credits to the extent that it is
probable that future taxable profit will be available against which the deductible temporary
differences deductible losses and tax credits can be utilized unless:
(1) The deductible temporary difference arises from a transaction that: is not a business
combination; at the time of the transaction affects neither accounting profit nor taxable
profit or deductible loss; and the initial recognition of the asset and liability does not give
rise to equal taxable and deductible temporary differences;
(2) For deductible temporary differences associated with investments in subsidiaries and
associates it is probable that the temporary difference will reverse in the foreseeable future
and taxable profit will be available against which the temporary difference can be utilized.At the balance sheet date the Group measures deferred tax assets and liabilities at the tax
rates that are expected to apply to the period when the asset is realized or the liability is
settled based on tax laws enacted or substantively enacted by the balance sheet date and
reflects the income tax effects of the manner in which the assets are expected to be
recovered or the liabilities settled at the balance sheet date.As of the balance sheet date the Group reviews the carrying amount of deferred tax assets.If it is probable that sufficient taxable profit will not be available in future periods to utilize
the benefits of the deferred tax assets the carrying amount of the deferred tax assets is
written down. As of the balance sheet date the Group reassesses unrecognized deferred tax
assets and recognizes deferred tax assets to the extent that it is probable that sufficient
taxable profits will be available to allow all or part of the deferred tax assets to be
recovered.Deferred tax assets and deferred tax liabilities are offset and presented on a net basis if and
only if the following conditions are met: there is a legally enforceable right to set off
current tax assets against current tax liabilities; the deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities which intend either to settle current tax liabilities
and assets on a net basis or to realize the assets and settle the liabilities simultaneously in
each future period in which significant amounts of deferred tax liabilities or assets are
expected to be settled or recovered.
38.Leases
√Applicable □Not Applicable
Basis for simplified accounting treatment by the lessee for short-term leases and leases
of low-value assets
√Applicable □Not Applicable
The Group recognizes right-of-use assets and lease liabilities for leases.On the lease commencement date the Group recognizes its right to use the leased asset
during the lease term as a right-of-use asset and initially measures it at cost. The cost of the
right-of-use asset comprises: the initial measurement amount of the lease liability; lease
payments made at or before the commencement date (less any lease incentives received);
initial direct costs incurred by the lessee; estimated costs to be incurred by the lessee in
dismantling and removing the underlying asset restoring the site on which it is located or
181 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
restoring the underlying asset to the condition required by the terms and conditions of the
lease. When the Group remeasures lease liabilities due to changes in lease payments it
correspondingly adjusts the carrying amount of the right-of-use assets. The Group
subsequently applies the straight-line method to depreciate right-of-use assets over their
useful lives. If it can be reasonably determined that ownership of the leased asset will be
obtained at the end of the lease term the Group depreciates the asset over its remaining
useful life. If it is not reasonably certain that the ownership of the leased asset will be
obtained at the end of the lease term the Group depreciates the leased asset over the shorter
of the lease term and the remaining useful life of the leased asset.At the commencement date of the lease term the Group recognizes the present value of the
lease payments not yet paid as a lease liability. Lease payments include fixed payments and
substantive fixed payments less any lease incentives receivable variable lease payments
that depend on an index or a rate amounts expected to be payable by the lessee under
residual value guarantees and the exercise price of a purchase option or payments of
penalties for terminating the lease if the lease term reflects the lessee exercising an option
to terminate the lease or it is reasonably certain that the Group will exercise the purchase
option.When substantive fixed payments change the amount expected to be payable under
residual value guarantees changes the index or rate used to determine lease payments
changes or the assessment result or actual exercise of purchase options extension options
or termination options changes the Group remeasures the lease liability based on the
present value of the revised lease payments.Classification criteria and accounting treatment methods for leases as a lessor
√Applicable □Not Applicable
A lease where substantially all the risks and rewards incidental to ownership of the leased
asset are transferred at the commencement date is classified as a finance lease; otherwise it
is classified as an operating lease.Rental income from operating leases is recognized in profit or loss for the current period on
a straight-line basis over the lease term. Variable lease payments not included in the lease
payments are recognized in profit or loss for the current period when incurred.
39.Other Significant Accounting Policies and Estimates
√Applicable □Not Applicable
The preparation of financial statements requires management to make judgments
estimates and assumptions that affect the reported amounts of revenues expenses assets
and liabilities as well as their disclosures including the disclosure of contingent liabilities
at the balance sheet date. The uncertainties arising from these assumptions and estimates
may result in significant adjustments to the carrying amounts of affected assets or liabilities
in the future.
(1) Judgments
In the process of applying the Group's accounting policies management has made the
following judgments that have the most significant effect on the amounts recognized in the
financial statements:
182 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Business model
The classification of financial assets at initial recognition depends on the Group's business
model for managing those assets. In assessing the business model the Group considers
factors such as how the entity evaluates the performance of financial assets and reports it to
key management personnel the risks that affect the performance of financial assets and
how those risks are managed and the manner in which relevant business managers are
compensated. When assessing that the objective is to collect contractual cash flows the
Group needs to analyze and evaluate the reasons for timing frequency and amounts of
sales of financial assets before their maturity date.Contractual cash flow characteristics
The classification of financial assets at initial recognition depends on the contractual cash
flow characteristics of the financial assets. It needs to be judged whether the contractual
cash flows are solely payments of principal and interest on the principal amount
outstanding. When assessing modifications to the time value of money it needs to be
judged whether there is a significant difference compared to the benchmark cash flows. For
financial assets with prepayment features it needs to be judged whether the fair value of
the prepayment feature is insignificant etc.Lease term - Lease contracts containing extension options
The lease term is the non-cancellable period for which the Group has the right to use the
leased asset plus periods covered by an option to extend the lease if the lessee is
reasonably certain to exercise that option. When assessing whether it is reasonably certain
to exercise an extension option the Group considers all relevant facts and circumstances
that create an economic incentive for the Group to exercise the extension option including
expected changes in facts and circumstances from the commencement date until the
exercise date of the option. At the commencement date the Group believes that due to
significant leasehold improvements made or expected to be made during the contract
period it is reasonably certain that the Group will exercise the extension option. Therefore
the lease term includes the period covered by the extension option. After the
commencement date if a significant event or change within the Group's control occurs that
affects whether the Group is reasonably certain to exercise the corresponding extension
option the Group will reassess whether to exercise the extension option and revise the lease
term based on the reassessment results.Identification of goodwill impairment CGUs
When conducting goodwill impairment testing the Group estimates the present value of the
future cash flows of the CGU or group of CGUs to which goodwill has been allocated. The
identification of a CGU is based on whether the main cash inflows generated by the CGU
are independent of the cash inflows from other assets or CGUs. When identifying CGUs
management considers the way the Group manages its production and operating activities
and its decision-making process for the continuous use or disposal of assets etc. The
identification of goodwill impairment CGUs this year is consistent with previous periods.Identification of business acquisitions
In acquisition projects the Group needs to judge whether the acquired asset portfolio
constitutes a business. The Group uses the condition that "the acquired portfolio must have
at least one input and one substantive process and the combination of the two significantly
183 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
contributes to the ability to create output" as the criterion for judging whether the portfolio
constitutes a business.
(2) Estimation uncertainty
The following are key assumptions concerning the future and other key sources of
estimation uncertainty at the balance sheet date which may cause a material adjustment to
the book values of assets and liabilities within the next financial year.Impairment of financial instruments
The Group adopts ECL model to evaluate the impairment of financial instruments; the
application of the ECL model requires significant judgment and estimation and all
reasonable and based information including forward-looking information should be
considered. At the time of making such judgment and estimation the Group judges the
expected changes in the debtor's credit risks according to historical repayment data and by
combination with economic policies macroeconomic indexes and industrial risks etc.Different estimates may impact the provision for impairment and the impairment reserve
accrued may not equal to the future actual impairment loss amount.Impairment of non-current assets other than financial assets (excluding goodwill)
The Group will judge whether there exists indication showing that the impairment might
incur on non-current assets rather than financial assets at the balance sheet date. In addition
to the annual impairment test intangible assets with uncertain useful life shall also be
subject to impairment test in case of any sign of impairment. Other non-current assets other
than financial assets are tested for impairment when there are indications that their book
value may not be recoverable. Where the book value of an asset or asset group is higher
than the recoverable amount namely the net amount of the fair value minus the disposal
expenses or the present value of the estimated future cash flow whichever is higher it
indicates that impairment occurs. The net amount of fair value minus disposal expenses
shall be determined by referring to the sales agreement price or observable market price of
similar assets in fair transactions minus the incremental cost directly attributable to the
disposal of such assets. When expecting present value of future cash flow the Management
must estimate the estimated future cash flow of such asset or asset portfolio and select
suitable discount rate to confirm the present value of future cash flow.Goodwill impairment
The Group tests if the goodwill suffers from impairment at least once a year. This requires
estimating the present value of the future cash flows of the CGU or group of CGUs to
which goodwill has been allocated (goodwill book value is allocated to the CGU or group
of CGUs expected to benefit from the synergies of the business combination). When
estimating the present value of future cash flows the Group needs to estimate the future
cash flows generated by the CGU or group of CGUs and select an appropriate discount rate
to determine the present value of the future cash flows.Assuming other parameters remain unchanged if management revises the gross profit
margin used in the calculation of future cash flows for the CGU and group of CGUs and
the revised gross profit margin is lower than the currently used gross profit margin or the
revised revenue growth rate is lower than the currently used revenue growth rate the Group
may need to recognize additional impairment provisions for goodwill.
184 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Assuming other parameters remain unchanged if management revises the pre-tax discount
rate applied to the cash flow discounting and the revised pre-tax discount rate is higher
than the currently used discount rate the Group may need to recognize additional
impairment provisions for goodwill.If the actual growth rate and gross profit margin are higher or the actual pre-tax discount
rate is lower than management's estimates the Group cannot reverse previously recognized
goodwill impairment losses.Inventory impairment provision
As described in Note V. 16 the Group's inventories are measured at the lower of cost and
net realizable value. The net realizable value of inventory is the estimated selling price in
the ordinary course of business less the estimated costs of completion and the estimated
costs necessary to make the sale and related taxes. The Group reassesses at each balance
sheet date whether the net realizable value of inventory items is lower than the inventory
cost.V.16
Depreciation and amortization
The Group depreciates and amortizes investment property fixed assets long-term deferred
expenses and intangible assets using the straight-line method over their useful lives after
considering their residual values. The Group periodically reviews the useful lives to
determine the amount of depreciation and amortization expense to be recognized in each
reporting period. The useful life is determined by the Group based on past experience with
similar assets combined with expected technological updates. Depreciation and
amortization expenses are adjusted in future periods if there are material changes from
previous estimates.Fair value of unlisted equity investments
The Group estimates the fair value based on the present value of expected future cash flows
discounted using current discount rates for other financial instruments with similar
contractual terms and risk characteristics. This requires the Group to estimate expected
future cash flows credit risk volatility and discount rates thus involving uncertainty.Share-based payment
Equity-settled share-based payments in exchange for employee services are measured at the
fair value of the equity instruments granted to employees. If the options granted vest
immediately the fair value is recognized in relevant costs or expenses on the grant date
with a corresponding increase in capital reserves; if the options vest only after completing
services during the vesting period or meeting specified performance conditions then on
each balance sheet date during the vesting period based on the best estimate of the number
of equity instruments expected to vest the services received in the current period are
recognized in relevant costs or expenses at the grant date fair value with a corresponding
increase in capital reserves.Deferred income tax assets
Deferred tax assets should be recognized for all unused deductible losses to the extent that
it is probable there will be sufficient taxable profit against which these deductible losses
can be utilized. This requires the management to exercise significant judgment in
estimating the timing and amount of future taxable income in conjunction with tax
planning strategies to determine the amount of deferred tax assets to be recognized.
185 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Lessee's incremental borrowing rate
For leases where the implicit interest rate cannot be determined the Group uses the lessee's
incremental borrowing rate as the discount rate to calculate the present value of lease
payments. When determining the incremental borrowing rate the Group uses observable
interest rates under the prevailing economic environment as a reference. Based on this the
Group adjusts the reference rate by considering its own circumstances the characteristics of
the underlying assets the lease term the amount of lease liabilities and other specific
factors related to the lease arrangement to determine the applicable incremental borrowing
rate.
40.Changes in Significant Accounting Policies and Accounting Estimates
See the Company's Explanation and Analysis on the Reasons and Influences of Changes in
Accounting Policies and Accounting Estimates or Correction of Major Accounting Errors
in "Important Notes"
41.First-time adoption of new accounting standards or interpretations etc. in 2025 involving
adjustment of the financial statements at the beginning of the first year of adoption
□Applicable √Not Applicable
42.Others
□Applicable √Not Applicable
VI. Taxes
1. Main tax types and rates
Main tax categories and tax rates
√Applicable □Not Applicable
Tax type Tax basis Tax rate
-- Companies and stores Simplified collection projects
assessed as general taxpayers: 3%; Family planning supplies
Taxable value-added amount tax-exempt; Chinese herbal
(calculated based on sales medicine pieces 9% other
amount and applicable tax goods 13%
rate for output tax less
deductible input tax)
Value added tax (VAT)
- Companies and stores 0% or 1% or 3%
assessed as small-scale
taxpayers: taxable sales
-- Consulting services 6%
-- Leasing business 5% or 9%
Educational surcharge Actual VAT paid 3%
186 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Urban maintenance and
Actual VAT paid 5% or 7%
construction tax
Local educational
surcharge Actual VAT paid 2%
-
Enterprise income tax Taxable income 25% 15% 5% 3%
For companies and stores assessed as general taxpayers the applicable VAT rate for sales
of anti-cancer drugs and biological products is the simplified collection rate of 3%. Sales of
contraceptive drugs and devices are tax-exempt.If there are taxpayers applying different enterprise income tax rates please make disclosure
as appropriate
□Applicable √Not Applicable
2. Tax concessions
√Applicable □Not Applicable
（1） VAT preferences
For companies and stores assessed as small-scale taxpayers according to the
Announcement on VAT Reduction and Exemption Policies for Small-scale VAT
Taxpayers (Ministry of Finance State Taxation Administration Announcement [2023] No.
19) from January 1 2023 to December 31 2027 small-scale VAT taxpayers with monthly
sales of RMB 100000 or less (inclusive) are exempt from VAT. Small-scale taxpayer
stores of the Group meeting the above conditions enjoy the above VAT exemption policy.According to the Announcement on Clarifying Policies such as VAT Reduction and
Exemption for Small-scale VAT Taxpayers (Ministry of Finance State Taxation
Administration Announcement [2023] No. 1) from January 1 2023 to December 31 2027
taxable sales income subject to the 3% collection rate for small-scale VAT taxpayers shall
be levied VAT at a reduced rate of 1%; VAT prepayment items subject to the 3%
prepayment rate shall be prepaid at a reduced rate of 1%.
（2） Enterprise income tax preferences
According to the Announcement on Continuing the Enterprise Income Tax Policies for the
Western Development [Ministry of Finance Announcement 2020 No. 23] jointly issued by
the Ministry of Finance State Taxation Administration and National Development and
Reform Commission from January 1 2021 to December 31 2030 encouraged industries
located in the western region are subject to a reduced enterprise income tax rate of 15%.The Company's subsidiaries LBX Pharmacy Chain (Guangxi) Co. Ltd. (hereinafter
referred to as "Guangxi Company") Forworld Medicine (Guangxi) Co. Ltd. (hereinafter
referred to as "Guangxi Forworld") LBX Health Pharmacy Group (Guangxi) Co. Ltd.(hereinafter referred to as "Health Pharmacy Guangxi") LBX Pharmacy Chain (Shaanxi)
Co. Ltd. (hereinafter referred to as "Shaanxi Company") Xi'an Longsheng Pharmaceutical
Co. Ltd. (hereinafter referred to as "Xi'an Longsheng") Shaanxi LBX Sanqin Jishengtang
Pharmaceutical Chain Co. Ltd. (hereinafter referred to as "Shaanxi Sanqin Jishengtang")
LBX Health Pharmacy Group (Shaanxi) Co. Ltd. (hereinafter referred to as "Health
Pharmacy Shaanxi") LBX Pharmacy Chain (Gansu) Co. Ltd. (hereinafter referred to as
187 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
"Lanzhou Huirentang") Lanzhou Huiren Changqing Pharmaceutical Co. Ltd. (hereinafter
referred to as "Lanzhou Changqing") Ningxia LBX Huirentang Pharmaceutical Co. Ltd.(hereinafter referred to as "Ningxia Huirentang Pharmaceutical") Tongliao Zeqiang
Pharmacy Chain Co. Ltd. (hereinafter referred to as "Tongliao Zeqiang") Inner Mongolia
Zeqiang Pharmaceutical Co. Ltd. (hereinafter referred to as "Inner Mongolia Zeqiang")
Chifeng LBX Pharmacy Chain Co. Ltd. (hereinafter referred to as "Chifeng LBX")
Chifeng Renchuan Pharmaceutical Co. Ltd. (hereinafter referred to as "Renchuan
Pharmaceutical") and LBX Health Pharmacy Chain (Ningxia) Co. Ltd. (hereinafter
referred to as "Ningxia Health Pharmacy") enjoy the preferential enterprise income tax
policy for the Western Development applying a 15% enterprise income tax rate for FY
2025 (15% for the FY 2024).20252024
According to the Announcement on Further Supporting the Development of Small and
Micro Enterprises and Individual Industrial and Commercial Households Regarding
Relevant Tax and Fee Policies (Ministry of Finance State Taxation Administration
Announcement [2023] No. 12) from January 1 2023 to December 31 2027 for small
profitable enterprises with annual taxable income not exceeding RMB 1 million the portion
shall be included in taxable income at a reduced rate of 25% and enterprise income tax
shall be paid at a rate of 20%; from January 1 2022 to December 31 2027 for small
profitable enterprises with annual taxable income exceeding RMB 1 million but not
exceeding RMB 3 million the portion shall be included in taxable income at a reduced rate
of 25% and enterprise income tax shall be paid at a rate of 20% resulting in an applicable
effective tax rate of 5%. The Company's subsidiaries Henan Easy Drug Pharmaceutical
Technology Co. Ltd. Xinjian County Baihui Pharmaceutical Co. Ltd. and 89 other
companies meeting the conditions for small profitable enterprises enjoy the above income
tax preferential policies.
2025According to the Notice of the People's Government of Guangxi Zhuang Autonomous
Region on Printing and Distributing Several Policies for Promoting High-Level Opening-
up and High-Quality Development of the Guangxi Beibu Gulf Economic Zone in the New
Era (Gui Zheng Fa [2020] No. 42) Guangxi Forworld being a newly registered enterprise
within the Beibu Gulf Economic Zone and meeting the conditions for the Western
Development enterprise income tax preference is exempt from the local share (40%) of
enterprise income tax for 5 years starting from the tax year in which the first main business
income is obtained applying a 9% enterprise income tax rate for FY 2025 (9% for FY
2024); Guangxi LBX Pharmacy Health Technology Co. Ltd. Guangxi Longxing Qianyi
Health Management Co. Ltd. Guangxi Longxing Century Health Management Co. Ltd.being newly registered enterprises within the Beibu Gulf Economic Zone and meeting the
conditions for small-scale taxpayer tax preferences are exempt from the local share (40%)
of enterprise income tax for 5 years starting from the tax year in which the first main
business income is obtained applying a 3% enterprise income tax rate for FY
2025.20242025
According to the Measures for Further Supporting the High-Quality Development of the
Private Economy issued by the Party Committee and Government of the Inner Mongolia
Autonomous Region from September 27 2022 to December 31 2025 small profitable
enterprises with annual taxable income below RMB 1 million (inclusive) are exempt from
the local share (40%) of enterprise income tax with an actual applicable tax rate of 3%.The Company's subsidiaries Tongliao Zeqiang Binhe Lekang Maternal and Infant Products
Co. Ltd. and Tongliao Zeqiang Meilejia Supermarket Co. Ltd. Tongliao Zeqiang Lekang
188 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Maternal and Infant Products Co. Ltd. Tongliao No. 2 Meilejia Supermarket Co. Ltd.meet the above preferential conditions applying a 3% enterprise income tax rate for FY
2025.2025
The Company's subsidiary Hunan Yaoshengtang Chinese Medicine Technology Co. Ltd.(hereinafter referred to as "Yaoshengtang Chinese Medicine Technology") whose main
business is the production of Chinese herbal medicine pieces and Chinese patent medicines
enjoys enterprise income tax exemption for the sales income from its produced Chinese
herbal medicine pieces which complies with the regulations for primary processing of
agricultural products under Article 27(1) of the Enterprise Income Tax Law.Based on the certificate of high-tech enterprise obtained by the Company's subsidiary
Hunan Baixin Information Technology Co. Ltd. (hereinafter referred to as "Hunan
Baixin") in December 2024 it calculates and pays enterprise income tax at a reduced
preferential rate of 15% for FY 2025.2025
3. Others
□Applicable √Not Applicable
VII. Notes to the Consolidated Financial Statements
1. Cash and bank balances
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Cash on hand 8144364 7404677
Bank deposits 1116687782 931407077
Other cash and bank
12335971391441053565
balances
Amounts deposited
in finance company
Total 2358429285 2379865319
Of which: Total
amount deposited
overseas
Other explanations:
Other cash and cash equivalents mainly consist of margins for bank acceptance bill. The
Group's restricted cash amounted to RMB 1214587907 (RMB 1393129666 on
December 31 2024). For details see Note VII. 31.
2. Trading financial assets
□Applicable √Not Applicable
189 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
3. Derivative financial assets
□Applicable √Not Applicable
4. Notes receivable
(1). Classified presentation of notes receivable
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Bank acceptance bills 58033940 76074821
Total 58033940 76074821
(2). Pledged notes receivable of the Company at the end of the period
□Applicable √Not Applicable
(3). Notes receivable endorsed or discounted by the Company and not yet matured at the balance
sheet date
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount derecognized at the Amount not derecognized at
Item
end of the period the end of the period
Bank acceptance bills 57042154
Total 57042154
(4). Disclosure by accrual method for bad debt provision
□Applicable √Not Applicable
Bad debt provision accrued individually:
□Applicable √Not Applicable
Bad debt provision made on a portfolio basis:
□Applicable √Not Applicable
Bad debt provision based on the general model of ECL
□Applicable √Not Applicable
Basis for stage classification and bad debt provision ratio
None
Explanation of significant changes in the book balance of notes receivable with changes in loss provision
during the current period:
□Applicable √Not Applicable
190 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(5). Bad debt provision
□Applicable √Not Applicable
Including recovered or reversed amount for the bad debt provisions in the current period:
□Applicable √Not Applicable
Other explanations:
None
(6). Notes receivable actually written off during the current period
□Applicable √Not Applicable
Among them the write-off of important notes receivable:
□Applicable √Not Applicable
Explanation of notes receivable write-off:
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
5. Accounts receivable
(1). Disclosure by aging
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Aging Closing book balance Opening book balance
Within 1 year (inclusive) 2051568112 2299856094
Within 1 year 2051568112 2299856094
1-2 year(s) 67589965 54328176
2-3 years 21269351 10773852
Over 3 years 11720677 6112830
3-4 years
4-5 years
Over 5 years
Total 2152148105 2371070952
(2). Disclosure by accrual method for bad debt provision
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance Opening balance
Category Book Bad debt Book Bad debt Book
Book balance
balance provision value provision value
191 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Prop Accr Accr
Prop
Amo ortio Amo ual Amo Amo ual
ortio
unt n unt ratio unt unt ratio
n (%)
(%)(%)(%)
Bad debt
provision
made
individually
Including:
Bad debt 210 234
21524442371
provision 772 3058 048
1481002342.060701001.29
made by 465 1027 992
10555952
portfolio 0 5
Including:
Portfolio of 210 234
21524442371
credit risk 772 3058 048
1481002342.060701001.29
characteristi 465 1027 992
10555952
c 0 5
210234
21524442371
7723058048
Total 148 / 234 / 070 / /
4651027992
10555952
05
Bad debt provision accrued individually:
□Applicable √Not Applicable
Bad debt provision made on a portfolio basis:
√Applicable □Not Applicable
Portfolio provision item: Credit risk characteristic portfolio
Unit: RMB Currency: RMB
Closing balance
Name
Book balance Bad debt provision Accrual ratio (%)
Medical insurance 1419889658 15759922 1.11
receivables
Enterprise trade 317352325 18148605 5.72
receivables
Hospital and health 246557406 7179583 2.91
center trade
receivables
Others 168348716 3335345 1.98
Total 2152148105 44423455 2.93
Explanation of accrual of bad debt provision by portfolio:
□Applicable √Not Applicable
Bad debt provision based on the general model of ECL
192 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
□Applicable √Not Applicable
Basis for stage classification and bad debt provision ratio
None
Explanation of significant changes in the book balance of accounts receivable with changes in loss
provision during the period:
□Applicable √Not Applicable
(3). Bad debt provision
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Change amount during the current period
Opening Recovery Charge-off Closing
Category Other
balance Provision or or write- balance
changes
reversal off
Accounts 3058102 4442345
16070397-2227969
receivable 7 5
30581024442345
Total 16070397 -2227969
75
Including recovered or reversed amount for the bad debt provisions in the current period:
□Applicable √Not Applicable
Other explanations:
None
(4). Actual write-off of accounts receivable during the current period
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Written-off amount
Accounts receivable actually written off 2227969
Write-off of significant accounts receivable
□Applicable √Not Applicable
Explanations about written-off accounts receivable:
□Applicable √Not Applicable
(5). Situation of accounts receivable and contract assets for the top five debtors by closing balance
√Applicable □Not Applicable
Unit: RMB Currency: RMB
193 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Proportion to
Closing the total
Closing Closing balance of closing Closing
Company balance of balance of accounts balance of balance of
name accounts contract receivable accounts bad debt
receivable assets and contract receivable provision
assets and contract
assets (%)
Changsha
Medical
Insurance
34529647234529647216.043047586
Manageme
nt Service
Bureau
Shaanxi
Medical
Insurance
1566402581566402587.28626561
Fund
Manageme
nt Center
Women &
Children's
Hospital of 84112574 84112574 3.91 1028059
Hunan Co.Ltd.Wuhan
Medical
60854072608540722.834564904
Insurance
Center
Lanzhou
Medical
49160736491607362.28196643
Security
Bureau
Total 696064112 696064112 32.34 9463753
Other explanations:
None
Other explanations:
□Applicable √Not Applicable
6. Contract assets
(1). Contract assets
□Applicable √Not Applicable
(2). Significant changes in book value and reasons during the reporting period
□Applicable √Not Applicable
194 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(3). Disclosure by accrual method for bad debt provision
□Applicable √Not Applicable
Bad debt provision accrued individually:
□Applicable √Not Applicable
Explanation of individually accrued bad debt provision:
□Applicable √Not Applicable
Bad debt provision made on a portfolio basis:
□Applicable √Not Applicable
Bad debt provision based on the general model of ECL
□Applicable √Not Applicable
Basis for stage classification and bad debt provision ratio
None
Explanation of significant changes in the book balance of contract assets with changes in loss provision
during the current period:
□Applicable √Not Applicable
(4). Bad debt provision for contract assets in the current period
□Applicable √Not Applicable
Including recovered or reversed amount for the bad debt provisions in the current period:
□Applicable √Not Applicable
Other explanations:
None
(5). Write-off of contract assets during the current period
□Applicable √Not Applicable
Details of significant contract asset write-off
□Applicable √Not Applicable
Explanation for contract asset write-off:
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
7. Accounts receivable financing
(1). Classification and presentation of receivables financing
√Applicable □Not Applicable
195 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Bank acceptance bills 5612871 15269288
Total 5612871 15269288
(2). The pledged amount of accounts receivable financing at the end of the period
□Applicable √Not Applicable
(3). Receivables financing endorsed or discounted by the Company and not yet matured at the
balance sheet date
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount derecognized at the Amount not derecognized at
Item
end of the period the end of the period
Bank acceptance bills 340693018
Total 340693018
(4). Disclosure by accrual method for bad debt provision
□Applicable √Not Applicable
Bad debt provision accrued individually:
□Applicable √Not Applicable
Explanation of individually accrued bad debt provision:
□Applicable √Not Applicable
Bad debt provision made on a portfolio basis:
□Applicable √Not Applicable
Bad debt provision based on the general model of ECL
□Applicable √Not Applicable
Basis for stage classification and bad debt provision ratio
None
Explanation of significant changes in the book balance of receivables financing with changes in loss
provision during the current period:
□Applicable √Not Applicable
(5). Bad debt provision
□Applicable √Not Applicable
Including recovered or reversed amount for the bad debt provisions in the current period:
□Applicable √Not Applicable
Other explanations:
196 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
None
(6). Financing of receivables actually written off for the current period
□Applicable √Not Applicable
Wherein financing and write-off of significant accounts receivable
□Applicable √Not Applicable
Write-off explanation:
□Applicable √Not Applicable
(7). Changes in receivables financing and fair value changes during the period:
□Applicable √Not Applicable
(8). Other Explanations
□Applicable √Not Applicable
8. Prepayments
(1). Prepayments presented by aging
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance Opening balance
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 115076611 87.35 156162500 91.60
1-2 year(s) 8446209 6.41 4936304 2.90
Over 2 years 8216933 6.24 9378208 5.50
Impairment -3988938 -85694
provision for
prepayments
Total 127750815 100 170391318 100
The reasons of untimely settlement of advanced payment whose aging is over 1 year and
whose amount is significant:
None
(2). Situation of prepayments for the top five counterparties by closing balance
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Proportion of total
Company name Closing balance prepayments at the end of
the period (%)
Total prepayments for the 20804033 16.28
top five counterparties
Total 20804033 16.28
Other explanations:
None
197 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Other explanations:
□Applicable √Not Applicable
9. Other receivables
Presentation by item
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 215188071 265281348
Total 215188071 265281348
Other explanations:
□Applicable √Not Applicable
Interest receivable
(1).Classification of interest receivable
□Applicable √Not Applicable
(2).Significant overdue interest
□Applicable √Not Applicable
(3).Disclosure by accrual method for bad debt provision
□Applicable √Not Applicable
Bad debt provision accrued individually:
□Applicable √Not Applicable
Explanation of individually accrued bad debt provision:
□Applicable √Not Applicable
Bad debt provision made on a portfolio basis:
□Applicable √Not Applicable
(4).Bad debt provision based on the general model of ECL
□Applicable √Not Applicable
Basis for stage classification and bad debt provision ratio
None
Explanation of significant changes in the book balance of interest receivable with changes in loss provision
during the current period:
198 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
□Applicable √Not Applicable
(5).Bad debt provision
□Applicable √Not Applicable
Including recovered or reversed amount for the bad debt provisions in the current period:
□Applicable √Not Applicable
Other explanations:
None
(6).Interest receivable actually written off for the current period
□Applicable √Not Applicable
Wherein write-off of significant interests receivable
□Applicable √Not Applicable
Write-off explanation:
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
Dividends receivable
(1).Dividends receivable
□Applicable √Not Applicable
(2).Important dividends receivable with the aging of more than 1 year
□Applicable √Not Applicable
(3).Disclosure by accrual method for bad debt provision
□Applicable √Not Applicable
Bad debt provision accrued individually:
□Applicable √Not Applicable
Explanation of individually accrued bad debt provision:
□Applicable √Not Applicable
Bad debt provision made on a portfolio basis:
□Applicable √Not Applicable
(4).Bad debt provision based on the general model of ECL
□Applicable √Not Applicable
199 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Basis for stage classification and bad debt provision ratio:
None
Explanation of significant changes in the book balance of dividends receivable with changes in loss
provision during the current period:
□Applicable √Not Applicable
(5).Bad debt provision
□Applicable √Not Applicable
Including recovered or reversed amount for the bad debt provisions in the current period:
□Applicable √Not Applicable
Other explanations:
None
(6).Dividends receivable actually written off for the current period
□Applicable √Not Applicable
Wherein write-off of significant dividends receivable
□Applicable √Not Applicable
Write-off explanation:
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
Other receivables
(1).Disclosure by aging
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Aging Closing book balance Opening book balance
Within 1 year (inclusive) 197125936 179742532
Within 1 year 197125936 179742532
1-2 year(s) 11784993 64261281
2-3 years 4092159 14549506
Over 3 years 19671927 23220747
3-4 years
4-5 years
Over 5 years
Less: Bad debt provision for
-17486944-16492718
other receivables
Total 215188071 265281348
200 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(2).Classification by nature of funds
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Nature of funds Closing book balance Opening book balance
Receivables from third 37462663 89277703
parties
Electronic wallet 132433555 95221972
Deposits 10639464 12011421
Advances 22348789 22114711
Store petty cash 11341773 24350523
Employee advances 9030979 17288714
Others 9417792 21509022
Total 232675015 281774066
(3).Bad debt provision
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Stage 1 Stage 2 Stage 3
Bad debt
ECL for the Lifetime ECL (not Lifetime ECL Total
provision
next 12 months credit-impaired) (credit-impaired)
Balance as of 4858931 11633787 16492718
January 01 2025
Balance at January 4858931 11633787 16492718
012025
- Transferred to
Stage 2
- Transferred to
Stage 3
- Reversed to
Stage 2
- Reversed to
Stage 1
Accrual in the
23257182325718
current period
Reversal in the -70000
-488766-558766
current period
Charge-off in the
current period
Write-off in the
-772726-772726
current period
Other changes
Balance as of 5923157 11563787 17486944
December 31
2025
Basis for stage classification and bad debt provision ratio
None
Explanation of significant changes in the book balance of other receivables with changes in loss provision
during the current period:
□Applicable √Not Applicable
201 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
The amount of bad debt provision for the current period and the basis for assessing whether
credit risks of financial instruments have increased significantly:
□Applicable √Not Applicable
(4).Bad debt provision
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Change amount during the current period
Opening Recovery Charge- Closing
Category Other
balance Provision or off or balance
changes
reversal write-off
2025164927182325718-558766-77272617486944
Total 16492718 2325718 -558766 -772726 17486944
Wherein: the amount of bad debt provision reversed or recovered during the current period
is significant:
□Applicable √Not Applicable
Other explanations:
None
(5).Actual write-off of other receivables during the period
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Written-off amount
Other receivables actually written off 772726
Wherein write-off of other significant accounts receivable:
□Applicable √Not Applicable
Explanation about write-off of other receivables
□Applicable √Not Applicable
(6).Situation of other receivables for the top five debtors by closing balance
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Proportion of Bad debt
Company Closing total closing provision
Nature Aging
name balance balance to other Closing
receivables (%) balance
Gaoji 3.16
Zaikang Receivable
(Jiangsu) 736262 s from
2-3 years 97187
Pharmaceuti 6 third
cal Chain parties
Co. Ltd.
202 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Beijing 3.10
Qiandaibao
721755 Electronic Within 1
Payment 36088
7 wallet year
Technology
Co. Ltd.Shanghai 2.90
Xunmeng
674054 Electronic Within 1
Information 33703
5 wallet year
Technology
Co. Ltd.Health Plus 2.24
Technology 520798 Electronic Within 1
26040
(Beijing) 8 wallet year
Co. Ltd.Guangxi 2.02
Jingdong
470086 Electronic Within 1
Tuohang E- 23504
7 wallet year
commerce
Co. Ltd.Total 312295 13.42
//216522
83
(7).Presented in other receivables due to centralized fund management
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
10. Inventories
(1). Classification of inventories
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance Opening balance
Inventory Inventory
impairment impairment
provision/i provision/i
Item Book mpairment Book Book mpairment Book
balance provision value balance provision value
for contract for contract
performanc performanc
e costs e costs
Goods in 3606678 3589489 3549914 352557
1718918324340300
stock 494 311 801 4501
Finished 2068449 2068449 1901901 190190
goods 5 5 7 17
Raw 2691723 2691723 1714223 171422
materials 0 0 6 36
203 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Low-value
737286
consumable 8324667 8324667 7372862
s
Work in 442989
683676668367664429891
progress 1
3669441171891833652252359787824340300357353
Total
6524698078507
(2). Data resources recognized as inventories
□Applicable √Not Applicable
(3). Inventory impairment provision and impairment provision for contract performance cost
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Increase for the Decrease for the
current period current period
Opening Closing
Item Reversal
balance balance
Provision Others or write- Others
off
Goods in stock 243403 1265403 - 1718918
00219805143
9
2434031265403-1718918
Total 00 2 1980514 3
9
Reasons for the reversal or write-down of inventory write-down in the current period
√Applicable □Not Applicable
Item Basis for providing/(reversing) Reason for write-off of inventory
inventory impairment provision impairment provision this year
Goods in Measurement at lower of cost and Inventory scrapped
stock net realizable value
Finished Measurement at lower of cost and Inventory scrapped
goods net realizable value
Inventory write-down accrued by combination
□Applicable √Not Applicable
Criteria for accruing the inventory write-down by portfolios
□Applicable √Not Applicable
(4). Closing balance of inventories includes the amount of capitalized borrowing costs standards
and basis for calculation
□Applicable √Not Applicable
204 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(5). Explanation of the amortization amount of contract fulfillment costs during the period
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
11. Assets held for sale
□Applicable √Not Applicable
12. Non-current assets due within one year
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Long-term receivables due
4122558737528487
within one year
Total 41225587 37528487
Long-term debt investment due within one year
□Applicable √Not Applicable
Long-term debt investment due within one year
□Applicable √Not Applicable
Other explanation for non-current assets due within one year:
None
13. Other current assets
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Input VAT to be deducted 264435192 215072326
Total 264435192 215072326
Other explanations:
None
14. Debt investments
(1). Debt investments
□Applicable √Not Applicable
Changes in impairment provisions for debt investments in the current period
□Applicable √Not Applicable
205 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(2). Significant debt investments at the end of the period
□Applicable √Not Applicable
(3). Accrual of impairment provision
□Applicable √Not Applicable
Basis for stage classification and impairment provision ratio:
None
Explanation of significant changes in the book balance of debt investments with changes in loss provision
during the current period:
□Applicable √Not Applicable
The amount of impairment provision for the current period and the basis for assessing whether credit risks
of financial instruments have increased significantly
□Applicable √Not Applicable
(4). Actual write-off of debt investments in the current period
□Applicable √Not Applicable
Wherein: write-off of significant debt investments
□Applicable √Not Applicable
Explanation of debt investment write-off:
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
15. Other debt investments
(1). Other debt investments
□Applicable √Not Applicable
Change in credit impairment provision for other equity investments in the current period
□Applicable √Not Applicable
(2). Other material debt investments at the end of the period
□Applicable √Not Applicable
(3). Accrual of impairment provision
□Applicable √Not Applicable
Basis for stage classification and impairment provision ratio:
None
206 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Explanation of significant changes in the book balance of other debt investments with changes in loss
provision during the current period:
□Applicable √Not Applicable
The amount of impairment provision for the current period and the basis for assessing whether credit risks
of financial instruments have increased significantly
□Applicable √Not Applicable
(4). Other debt investments actually written off for the current period
□Applicable √Not Applicable
Wherein write-off of other significant debt investments
□Applicable √Not Applicable
Explanation about write-off of other debt investments:
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
16. Long-term receivables
(1). Long-term receivables
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance Opening balance Discou
Item Book Bad debt Book Book Bad debt Book nt rate
balance provision value balance provision value range
1073861073861169171169174.35%-
House lease deposits
9239238988984.75%
Less: House
4122554122537528375284
lease deposits due
8758748787
within one year
6616136616179389793894
Total /
3633641111
(2). Disclosure by accrual method for bad debt provision
□Applicable √Not Applicable
Bad debt provision accrued individually:
□Applicable √Not Applicable
Explanation of individually accrued bad debt provision:
□Applicable √Not Applicable
Bad debt provision made on a portfolio basis:
□Applicable √Not Applicable
207 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(3). Bad debt provision based on the general model of ECL
□Applicable √Not Applicable
Basis for stage classification and bad debt provision ratio
None
Explanation of significant changes in the book balance of long-term receivables with changes in loss
provision during the current period:
□Applicable √Not Applicable
The amount of bad debt provision for the current period and the basis for assessing whether credit risks of
financial instruments have increased significantly
□Applicable √Not Applicable
(4). Bad debt provision
□Applicable √Not Applicable
Including recovered or reversed amount for the bad debt provisions in the current period:
□Applicable √Not Applicable
Other explanations:
None
(5). Actual write-off of long-term receivables during the period
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Written-off amount
Actual write-off of long-term receivables 678285
Wherein: write-off of significant long-term receivables
□Applicable √Not Applicable
Explanation of long-term receivables write-off:
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
17. Long-term equity investments
(1). Long-term equity investments
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Open Increase/decrease during the current period Closi Closi
ing Addi Red Profit Adju Othe Decla Impa ng ng
Invest
Bala tiona ucti or stme r ration irme Othe Bala balan
ee
nce l on loss nt to equit of nt rs nce ce of
(boo inves in recog othe y cash provi (boo impa
208 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
k tmen inve nized r chan divid sion k irme
value t stme on com ges ends made value nt
) nt inves preh or ) provi
tment ensi profit sion
s ve s
under inco
the me
equit
y
meth
od
I. Joint ventures
Subto
tal
II. Associates
Huna
n
Phar
-
mace 7214 6746
4679
utical 0491 1376
115
Grou
p Co.Ltd.Beijin
g
Tong
Ren
Tang
Huna 1321 6096 1382
n 2226 68 1894
Phar
mace
utical
Co.Ltd.-
Subto 8535 8128
4069
tal 2717 3270
447
-
85358128
Total 4069
27173270
447
(2). Impairment test of long-term equity investments
□Applicable √Not Applicable
209 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Other explanations:
In October 2019 the Company signed a contribution agreement with a third-party company
to jointly establish Hunan Pharmaceutical Group Co. Ltd. The Company holds 12.5%
equity in Hunan Pharmaceutical Group Co. Ltd. By December 31 2020 the Company had
paid the contribution amount of RMB 62500000 corresponding to 6.25% equity as agreed
in the contribution agreement. The Company can appoint one director and exercise
significant influence over it accounting for it as an associate.As of December 31 2025 the Company had held 7.46% equity in Hunan Pharmaceutical
Group Co. Ltd. can still appoint one director and exercises significant influence over it.In March 2024 the Company's subsidiary Hunan Mingyu Longxing Pharmaceutical Sales
Co. Ltd. signed a contribution agreement with Beijing Tong Ren Tang Commercial
Investment Group Co. Ltd. to jointly establish Beijing Tong Ren Tang Hunan
Pharmaceutical Co. Ltd. Hunan Mingyu Longxing Pharmaceutical Sales Co. Ltd. holds
49% equity in Beijing Tong Ren Tang Hunan Pharmaceutical Co. Ltd. The Group can
appoint two directors and exercise significant influence over it accounting for it as an
associate.
210 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
18. Other equity instrument investments
(1). Investments in other equity instruments
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Increase/decrease during the current
period
Losse
Cum
Gains s Cum
Divi ulati
recog recog ulati Reas
dend ve
nized nized ve on
inco losse
in in gains for
me s
Red other other recog desig
Open Clo recog recog
ucti compr comp nized natio
ing Addit sing nized nized
Item on ehensi rehen in n as
Bala ional Oth Bala durin in
in ve sive other meas
nce inves ers nce g the other
inve incom inco comp ured
tment curre comp
stme e me rehen at
nt rehen
nt during durin sive FVO
perio sive
the g the inco CI
d inco
curren curre me
me
t nt
period perio
d
Guan
gzhou
Xinch
eng
Infor
matio Long
n -term
Techn holdi
ology ng
353
Co. 3530 2030 for
081
Ltd. 8123 8123 non-
23
(herei tradi
nafter ng
referr purp
ed to oses
as
"Xinc
heng
Comp
any")
Beijin Long
g -term
4600460
Boyu holdi
00000
n ng
Likan for
211 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
g non-
Phar tradi
mace ng
utical purp
Infor oses
matio
n
Consu
lting
Cente
r
(herei
nafter
referr
ed to
as
"Boy
un
Likan
g")
Chife
ng
Yuan
baosh
an
Rural
Com
merci
al Long
Bank -term
Co. holdi
Ltd. ng
(herei 1096 for
-
nafter 00 non-
referr tradi
ed to ng
as purp
"Yuan oses
baosh
an
Rural
Com
merci
al
Bank"
)
357
35872030
Total 681 /
77238123
23
212 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(2). Explanation of derecognition situation during the current period
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
19. Other non-current financial assets
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Financial assets at FVTPL 6963496 12093150
Total 6963496 12093150
Other explanations:
√Applicable □Not Applicable
In 2025 the Company transferred its entire equity interest of 4.1556% in Hunan Huairen
Health Industry Development Co. Ltd. to Huaihua Renxin Health Consulting Center (L.P.).
20. Investment property
Measurement model for investment property
(1). Investment property using the cost measurement model
Unit: RMB Currency: RMB
Buildings and Land use Construction
Item Total
structures rights in progress
I. Original book value
1. Opening balance 37315751 5896566 309921887 353134204
2. Increase for the
current period
(1) Outsourcing
(2) Transfer-in of
inventory/fixed
assets/construction in
progress
(3) Increase from
business combination
3. Decrease for the
current period
(1) Disposal
(2) other transfer-out
4. Closing balance 37315751 5896566 309921887 353134204
II. Accumulated depreciation and accumulated amortization
1. Opening balance 7506625 1491397 27606327 36604349
2. Increase for the
71042513082183036629144908
current period
213 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(1) Provision or
71042513082183036629144908
amortization
3. Decrease for the
current period
(1) Disposal
(2) other transfer-out
4. Closing balance 8217050 1622218 35909989 45749257
III. Impairment provision
1. Opening balance
2. Increase for the
6450396764503967
current period
(1) Accrual 64503967 64503967
3. Decrease for the
current period
(1) Disposal
(2) other transfer-out
4. Closing balance 64503967 64503967
IV. Book value
1. Closing book value 29098701 4274348 209507931 242880980
2. Opening book value 29809126 4405169 282315560 316529855
(2). Investment property situation with title certificates not yet obtained
□Applicable √Not Applicable
(3). Impairment test for investment property using the cost measurement model
√Applicable □Not Applicable
Recoverable amount determined based on fair value less costs to sell
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Method of
determinin Basis for
Book Recoverab Impairmen g fair Key determinin
Item
value le amount t amount value and parameters g key
costs to parameters
sell
The fair Comparabl
value is e cases:
determine Select a
d by an transaction
independe case with
2740118 2095079 6450396 nt valuer Comparabl similar
Faxiangdi
98 31 7 based on e Cases location
the market the same
price of purpose
identical or the same
similar rights
assets in nature the
214 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
the open same
market and grade the
other same
relevant scale and
informatio the latest
n; Disposal closing
costs are date and
legal fees date of
related value in
taxes and respect of
direct costs the object
incurred to under test
make the
assets
ready for
sale
(including
value-
added tax
surtax
other
appraisal
fees
intermedia
ry fees
transaction
costs etc.)
in relation
to the
disposal of
assets
274011820950796450396
Total / / /
98317
The recoverable amount is determined by the present value of expected future cash flows
□Applicable √Not Applicable
Reasons for differences between the above information and the information or external information
used in the previous years' impairment tests
□Applicable √Not Applicable
Reasons for differences between the information used in previous years' impairment tests and the actual
situation of the current year
□Applicable √Not Applicable
Other explanations:
√Applicable □Not Applicable
215 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
On December 31 2025 the ownership of investment properties with a book amount of RMB
4274348 (December 31 2024: RMB 4405169) was restricted. See Note VII.31 for details.
"Hunan (2019) Changsha City Real Estate Ownership Certificate No. 0040100" was obtained
by the Group's subsidiary Hunan Faxiangdi Industrial Co. Ltd. on August 13 2018. As of
December 31 2025 the book amount of investment properties was RMB 209507931 and
the book amount of intangible assets was RMB 65906183. The Changsha Natural Resources
and Planning Administrative Law Enforcement Detachment imposed temporary regulatory
measures on the land use right in December 2022. These measures can be lifted once
construction begins on the land.
21. Fixed assets
Presentation by item
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Fixed assets 1348308487 1365648334
Disposal of fixed assets
Total 1348308487 1365648334
Other explanations:
√Applicable □Not Applicable
As of December 31 2025 the Group had no temporarily idle fixed assets.As of December 31 2025 the Group had no fixed assets leased out under operating leases.As of December 31 2025 the Group had no building and construction with title certificates not
yet obtained.As of December 31 2025 the ownership of buildings with a book value of RMB 511244382
(RMB 548238569 on December 31 2024) was restricted. See Note VII.31 for details.Fixed assets
(1).Details of fixed assets
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Building
Machinery Transporta Electronic
and
Item and tion and office Total
constructio
equipment vehicles equipment
n
I. Original book value:
1. Opening 9858810 1246372 3052596 9219581 20630023
balance 05 09 9 31 14
216 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
2. Increase for 1077417 5950543
9263421499060169672575
the current period 38 5
5950543
(1) Acquisition 2766209 926342 1499060 64697046
5
(2) Transfer
1049755
from construction in 104975529
29
progress
(3) Increase
from business
combination
-
3. Decrease for
-42010-54328908968481-95159711
the current period
1
-
(1) Disposal or
-42010-54328908968481-95159711
retirement
1
4. Closing 1093622 1255215 2659213 8917787 21375151
balance 743 41 9 55 78
II. Accumulated depreciation
1. Opening 1173336 2548855 1863263 5358991
697353980
balance 81 2 2 15
2. Increase for 2596921 1209213
84886612697643158076917
the current period 6 97
25969211209213
(1) Accrual 8488661 2697643 158076917
697
-
3. Decrease for
-16916-42744466193284-66224206
the current period
4
-
(1) Disposal or
-16916-42744466193284-66224206
retirement
4
4. Closing 1433028 3396029 1705582 5948876
789206691
balance 97 7 9 68
III. Impairment provision
1. Opening
balance
2. Increase for
the current period
(1) Accrual
3. Decrease for
the current period
(1) Disposal or
retirement
4. Closing
balance
IV. Book value
1. Closing book 9503198 9156124 2968910 13483084
9536310
value 46 4 87 87
2. Opening book 8685473 9914865 1189333 3860590 13656483
value 24 7 7 16 34
217 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(2).Details of temporarily idle fixed assets
□Applicable √Not Applicable
(3).Fixed assets leased through operating leases
□Applicable √Not Applicable
(4).Details of fixed assets without a property ownership certificate
□Applicable √Not Applicable
(5).Details of impairment test of fixed assets
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
Disposal of fixed assets
□Applicable √Not Applicable
22. Construction in progress
Presentation by item
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
Construction in progress
(1).Construction in progress
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance Opening balance
Book Impairme Book Impairme
Item Book Book
balan nt balan nt
value value
ce provision ce provision
LBX Pharmacy
Changsha NDC
Expansion
Project (Phase I)
(formerly known 170599 170599 4944558 4944558
as LBX 8 8 7 7
Logistics Hub
and E-commerce
Base Phase II
Project)
218 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Enterprise
Digital Platform
50107825010782
and New Retail
55
Construction
Project
Miscellaneous
and petty 339281 336451
2830282425128242512
construction 4 2
projects
50988133645117343010779591077959
Total
2202424
(2).Changes in significant construction in progress projects during the current period
□Applicable √Not Applicable
(3).Impairment provision for construction in progress in the current period
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Increase Decrease
Opening during the during the Closing Reason for
Item
balance current current balance provision
period period
Miscellan
Recoverable
eous and
amount was
petty
3364512 3364512 lower than
constructi
the book
on
value
projects
Total 3364512 3364512 /
(4).Impairment test for construction in progress
√Applicable □Not Applicable
Recoverable amount determined based on fair value less costs to sell
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Method of
determinin Basis for
Book Recoverab Impairmen g fair Key determinin
Item
value le amount t amount value and parameters g key
costs to parameters
sell
The fair Comparabl
value is e cases:
determine Comparabl Select a
Faxiangdi 3364512 3364512
d by an e Cases transaction
independe case with
nt valuer similar
219 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
based on location
the market the same
price of purpose
identical or the same
similar rights
assets in nature the
the open same
market and grade the
other same
relevant scale and
informatio the latest
n; Disposal closing
costs are date and
legal fees date of
related value in
taxes and respect of
direct costs the object
incurred to under test
make the
assets
ready for
sale
(including
value-
added tax
surtax
other
appraisal
fees
intermedia
ry fees
transaction
costs etc.)
in relation
to the
disposal of
assets
Total 3364512 3364512 / / /
The recoverable amount is determined by the present value of expected future cash flows
□Applicable √Not Applicable
Reasons for differences between the above information and the information or external information
used in the previous years' impairment tests
□Applicable √Not Applicable
Reasons for differences between the information used in previous years' impairment tests and the
actual situation of the current year
□Applicable √Not Applicable
220 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Other explanations:
□Applicable √Not Applicable
Engineering materials
(1).Engineering materials
□Applicable √Not Applicable
23. Productive biological assets
(1). Productive biological assets measured at cost
□Applicable √Not Applicable
(2). Impairment test of productive biological asset where cost measurement mode is adopted
□Applicable √Not Applicable
(3). Productive biological asset where fair value measurement mode is adopted
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
24. Oil-and-gas assets
(1). Oil and gas assets
□Applicable √Not Applicable
(2). Impairment test of fixed assets
□Applicable √Not Applicable
Other explanations:
None
25. Right-of-use assets
(1). Right-of-use assets
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Building and construction Total
I. Original book value
1. Opening balance 7399235092 7399235092
2. Increase for the current
759919115759919115
period
New additions 759919115 759919115
221 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
3. Decrease for the current
-374196449-374196449
period
Lease modification -21653770 -21653770
Disposal -352542679 -352542679
4. Closing balance 7784957758 7784957758
II. Accumulated depreciation
1. Opening balance 4896427929 4896427929
2. Increase for the current
11715505061171550506
period
(1) Accrual 1171550506 1171550506
3. Decrease for the current
-332387659-332387659
period
(1) Disposal -332387659 -332387659
4. Closing balance 5735590776 5735590776
III. Impairment provision
1. Opening balance
2. Increase for the current
period
(1) Accrual
3. Decrease for the current
period
(1) Disposal
4. Closing balance
IV. Book value
1. Closing book value 2049366982 2049366982
2. Opening book value 2502807163 2502807163
(2). Impairment test for right-of-use assets
□Applicable √Not Applicable
Other explanations:
None
26. Intangible assets
(1). Intangible assets
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Software
Land use Trademark
Item and patent Others Total
rights rights
rights
I. Original book value
1. Opening 27709277 62072886 13905106
39130641040785764
balance 6 3 1
2. Increase
for the current 81249925 81249925
period
222 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(1)
69596906959690
Acquisition
(2) Transfer
from construction 74290235 74290235
in progress
(3) Increase
from business
combination
3. Decrease
for the current -2274311 -2274311
period
(1) Disposal -2274311 -2274311
4. Closing 27709277 69970447 13905106
39130641119761378
balance 6 7 1
II. Accumulated amortization
1. Opening 17125948
244978813215990198973358
balance 7
2. Increase
for the current 4071314 94963673 697074 99732061
period
(1) Accrual 4071314 94963673 697074 99732061
3. Decrease
-
for the current -1900883
1900883
period
(1) Disposal -1900883 -1900883
4. Closing 26432227
285691953913064296804536
balance 7
III. Impairment provision
1. Opening
balance
2. Increase
for the current 20390112 20390112
period
(1) Accrual 20390112 20390112
3. Decrease
for the current
period
(1) Disposal
4. Closing
2039011220390112
balance
IV. Book value
1. Closing 22813346 43538220 13905106
802566730
book value 9 0 1
2. Opening 25259489 44946937 13905106
697074841812406
book value 5 6 1
The proportion of intangible assets formed through internal R&D to the balance of intangible
assets at the end of the period is 9.26%
223 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(2). Data resources recognized as intangible assets
□Applicable √Not Applicable
(3). Status of land use rights without property ownership certificates
□Applicable √Not Applicable
(4). Impairment test for intangible assets
√Applicable □Not Applicable
Recoverable amount determined based on fair value less costs to sell
□Applicable √Not Applicable
Basis for
Recove Method of Key
Book Impairmen determinin
Item rable determining fair value parame
value t amount g key
amount and costs to sell ters
parameters
Comparabl
e cases:
The fair value is Select a
determined by an transaction
independent valuer case with
based on the market similar
price of identical or location
similar assets in the the same
open market and other purpose
relevant information; the same
Disposal costs are rights
Compa
Faxian 862962 65906 2039011 legal fees related nature the
rable
gdi 95 183 2 taxes and direct costs same
Cases
incurred to make the grade the
assets ready for sale same
(including value- scale and
added tax surtax the latest
other appraisal fees closing
intermediary fees date and
transaction costs etc.) date of
in relation to the value in
disposal of assets respect of
the object
under test
862962659062039011
Total / / /
951832
The recoverable amount is determined by the present value of expected future cash flows
□Applicable √Not Applicable
224 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Reasons for differences between the above information and the information or external information
used in the previous years' impairment tests
□Applicable √Not Applicable
Reasons for differences between the information used in previous years' impairment tests and the
actual situation of the current year
□Applicable √Not Applicable
Other explanations:
√Applicable □Not Applicable
As of December 31 2025 the Group had no intangible assets with title certificates not yet
obtained.As of December 31 2025 the ownership of intangible assets with a book value of RMB
92961234 (December 31 2024: RMB 93712413) was restricted. See Note VII. 31 for
details."Hunan (2019) Changsha City Real Estate Ownership Certificate No. 0040100" was obtained
by the Group's subsidiary Hunan Faxiangdi Industrial Co. Ltd. on August 13 2018. The
project was suspended and signs of impairment were found the Group has carried out an
impairment test on the asset group of the project and determined the recoverable amount of the
project as the fair value net of the disposal costs i.e. RMB 275414114 and recognized asset
impairment provision of RMB 88258591 of which the book value of intangible assets
was RMB 65906183 recognizing asset impairment provision of RMB 20390112 asset
impairment provision of investment properties with book value of RMB 209507931 asset
impairment provision of RMB 64503967 with book value of RMB 0 at the end of the period
for construction in progress.
27. Goodwill
(1). Original book value of goodwill
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Increase during the Decrease during the
current period current period
Name of investee Generated
Opening Closing
or event forming from
balance balance
goodwill business Disposal
combinati
ons
Anhui
Baixingyuan
1942749194274
Pharmacy Chain
36936
Co. Ltd. ("Anhui
Baixingyuan")
39 stores of 9385031 938503
Changde 4 14
225 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Qinghetang
Pharmacy Chain
Co. Ltd.("Qinghetang 39
stores")
Changzhou
Wanren
Pharmacy Co. 8046657 804665
Ltd. ("Changzhou 4 74
Wanren
Company")
55 stores of
Hunan Kangyixin
Pharmacy Retail 7886407 788640
Chain Co. Ltd. 8 78
("Kangyixin 55
stores")
27 stores of
Anyang Xinglin
Pharmaceutical
4969999496999
Chain Co. Ltd.
999
("Xinglin
Pharmaceutical
27 stores")
4522102452210
Xi'an Longsheng
626
34 stores of
Hunan
Fushoutang
3893823389382
Pharmacy Retail
535
Chain Co. Ltd.("Fushoutang 34
stores")
100% equity
acquisition of
Henan
Pharmaceutical 3420693 342069
Supermarket Co. 4 34
Ltd. ("Henan
Pharmaceutical
Supermarket")
46 stores of
Tianjin
Jingyitang 2558119 255811
Pharmacy Co. 6 96
Ltd. ("Jingyitang
46 stores")
12 stores of
2056603205660
Ma'anshan
838
Baiyuan
226 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Pharmacy Chain
Co. Ltd.("Baiyuan 12
stores")
18 stores of
Hunan
Yaohaitang
2041352204135
Pharmaceutical
727
Chain Co. Ltd.("Yaohaitang 18
stores")
Changde
Minkang
Pharmacy Chain 1747164 174716
Co. Ltd. 8 48
("Changde
Minkang")
25 stores of
Anhui Hefei
Weimin
1857547185754
Pharmacy Chain
171
Co. Ltd. ("Hefei
Weimin 25
stores")
24 stores of
Hunan Kang'erjia
Baoqing
Pharmacy Chain 1697752 169775
Co. Ltd. 8 28
("Baoqing
Pharmacy 24
stores")
14 stores of
Xiangxiang
Xiangrentang
Pharmacy and
986641
Xiangxiang 9866416
6
Huashang
Pharmacy
("Xiangxiang 14
stores")
32 Haicheng 870000
8700000
Pharmacy stores 0
Anxiang
Kangyuan
Pharmacy Chain
580000
Co. Ltd. 5800000
0
("Anxiang
Kangyuan 18
stores")
227 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Lanzhou 2850485 285048
Huirentang 44 544
Yangzhou
Baixinyuan
Pharmaceutical 1148135 114813
Chain Co. Ltd. 34 534
("Yangzhou
Baixinyuan")
1273584127358
Renxin Pharmacy
949
100% equity of
Wuhan Nanfang
Pharmacy Chain 5551933 555193
Co. Ltd. 8 38
("Wuhan
Nanfang")
Jiangsu Baijiahui
Suhe Pharmacy
5965889596588
Chain Co. Ltd.
090
("Jiangsu
Baijiahui")
2361002236100
Tongliao Zeqiang
52252
Yangzhou
Mingxuan
Pharmacy Co.
719363
Ltd. Yangzhou 7193637
7
Xingyanghe
Pharmacy Co.Ltd.Zhenjiang
Huakang
Pharmacy Chain 5876781 587678
Co. Ltd. 0 10
("Zhenjiang
Huakang")
Taizhou
Longtaiyuan
5287456528745
Pharmaceutical
868
Chain Co. Ltd.("Longtaiyuan")
Nantong Puze
Pharmacy Chain 9341835 934183
Co. Ltd. 2 52
("Nantong Puze")
Anhui Linjiayi
Kangfu
4002472400247
Pharmacy Chain
323
Co. Ltd.("Linjiayi")
228 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Wuhu Xinshimin
1102327110232
Pharmacy Co.
171
Ltd.Hunan Easy Drug
Technology Co. 798719
7987199
Ltd. ("Easy 9
Drug")
Wuxi Sanpintan
Pharmaceutical 2901754 290175
Chain Co. Ltd. 4 44
("Sanpintan")
Changzhou Jintan
Xinqianqiu
1414807141480
Pharmacy Co.
171
Ltd. ("Jintan
Xinqianqiu")
Jiangsu Haipeng
Pharmaceutical
6948435694843
Chain Co. Ltd.
757
("Jiangsu
Haipeng")
Changzhou
Weizhikang
Pharmacy Co.Ltd. Changzhou
Weikang 1189390 118939
Pharmacy Co. 7 07
Ltd. etc.("Changzhou
Weizhikang 6
stores")
Anhui Zhengtong
Pharmacy Chain
Co. Ltd. 2572847 257284
("Zhengtong 6 76
Pharmacy 15
stores")
Anhui Zhengtong
Pharmacy Chain
Co. Ltd. 392113
3921132
("Zhengtong 2
Pharmacy 1
store")
Anhui
Yaoshantang
Pharmacy Chain
2358490235849
Co. Ltd.
707
("Yaoshantang
Pharmacy 16
stores")
229 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
9 Huarí Pharmacy 2837309 283730
stores 0 90
Linyi Rende
Pharmacy Chain 5979719 597971
Co. Ltd. ("Linyi 9 99
Rende")
Hengyang Qianxi
Yixintang
Pharmacy Chain
Co. Ltd.
2252394225239
(renamed "LBX
848
Pharmacy Chain
(Hengyang) Co.Ltd." after
acquisition)
Zhenjiang Kaitai
Pharmacy Co.Ltd. (renamed
"Zhenjiang 499154
4991549
Huakang Kaitai 9
Pharmacy Co.Ltd." after
acquisition)
Ningxia
Tongshengxiang
3830708383070
Tongjitang
989
Pharmaceutical
Co. Ltd.Shanxi Baihui
Pharmaceutical 9872121 987212
Chain Co. Ltd. 0 10
("Shanxi Baihui")
Tianjin Qianwei
Jinqilin
Pharmaceutical
Co. Ltd.(renamed
541081541081
"Tianjin LBX
Jinqilin
Pharmaceutical
Sales Co. Ltd."
after acquisition)
10 stores of Xi'an
Shisanchao
933962
Laoyaopu 9339622
2
Pharmaceutical
Co. Ltd.Changsha Kaifu
1617607161760
District Chujia
878
Renkangtai
230 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Pharmacy
Changsha Kaifu
District Maifei
Renkangtai
Pharmacy etc. 11
stores
21 stores of
Guangxi
3486613348661
Guangpu
232
Pharmaceutical
Co. Ltd.
17 stores of Xi'an
Jinxiu Huatuo 1570533 157053
Pharmaceutical 1 31
Co. Ltd. etc.
8 stores of Anhui
Xingtianxia 1183815 118381
Pharmacy Chain 7 57
Co. Ltd.
14 stores of
Hengyang
463000
Renxintang 4630000
0
Pharmacy Chain
Co. Ltd.
10 stores of
Huixian Ren'ai
LBX Pharmacy
1533587153358
Gangu County
272
Jiankang LBX
Pharmaceutical
Co. Ltd. etc.
19 stores of
Anhui Anning 4433962 443396
Pharmacy Chain 3 23
Co. Ltd.Nantong
Chengxin 3600960 360096
Pharmacy Chain 0 00
Co. Ltd.
21 Jiangyin 3492210 349221
Haipeng stores 2 02
16 stores of Xi'an
Dexiang 3344339 334433
Pharmaceutical 6 96
Co. Ltd.
12 stores of
Yixing Baixin 3200000 320000
Pharmacy Co. 0 00
Ltd. etc.
231 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
26 stores of
Shaoyang
3090571309057
Baoqing
010
Chuntian
Pharmacy
Ulanhot
Shengjian Shiyi 2600000 260000
Co. Ltd. etc. 11 0 00
pharmacies
11 stores of
1596711159671
Zhuzhou Xinglin
717
Pharmacy
22 stores of
1580000158000
Chenzhou Lexian
000
Pharmacy
10 stores of
Qidong County
1450524145052
Kangzhiyuan
848
Pharmacy Co.Ltd.
19 stores of
Nantong Bainian 1132292 113229
Pharmacy Chain 4 24
Co. Ltd.
12 stores of
Ruicheng County
1100000110000
Baihui
000
Pharmaceutical
Co. Ltd.
11 stores of Hefei
Pushengtang 993396
9933962
Pharmaceutical 2
Chain Co. Ltd.Hejin Renguo
Baihui 907800
9078000
Pharmaceutical 0
Co. Ltd.Yuanqu County
Baihui 691560
6915600
Pharmaceutical 0
Co. Ltd.
7 Changde 283002
2830024
Shunxing stores 4
Wuhu Jian'erjia
Pharmaceutical
Trading Co. Ltd.
100000
(renamed 1000000
0
"Forworld
Medicine
Logistics (Anhui)
232 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Co. Ltd." after
acquisition)
Tianjin LBX
Tonghui
116096116096
Pharmacy Co.Ltd.
111 stores of
1485800148580
Huairen Great
00000
Health
5947998594799
Chifeng LBX
28828
Shaanxi Sanqin 1180323 118032
Jishengtang 60 360
27 stores of
Anhui Baijiaxin
Pharmacy Chain 3914851 391485
Co. Ltd. ("Anhui 5 15
Baijiaxin 27
stores")
7 stores of
Yuncheng
Kanghui Tonghui
Pharmaceutical
Co. Ltd. Xinjian
1980000198000
County
000
Kanghuida
Pharmacy
("Xinjian
Baijiahui 7
stores")
28 Loudi 1532059 153205
Chujitang stores 2 92
19 stores in 3462763 346276
Ningxia Area 1 4 34
36 stores of
2623762262376
Chenzhou
424
Guiyang Fukang
46 stores of
3823962382396
Anhui Yuyong
323
Pharmacy
25 stores of
1415094141509
Shanxi LBX
343
Binhai Co. Ltd.
11 stores of
Hunan
3000000300000
Yongkangtang
000
Pharmacy Chain
Co. Ltd.Baicheng Tongtai 1236226 123622
Pharmaceutical 4 64
233 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Co. Ltd. etc. 39
stores
3 stores of Kangle
County 510679
5106796
Baijiakang 6
Pharmacy
Equity of
Xuancheng LBX
3750000375000
Jiangnan
000
Pharmaceutical
Chain Co. Ltd.Equity of Wuhu
Yuanchu 1050000 105000
Pharmacy Chain 00 000
Co. Ltd.
25 stores of
Jiangsu Puze 4276000 427600
Pharmacy Chain 0 00
Co. Ltd.
20 stores of
Xinghua Chushui 5850000 585000
Pharmacy Chain 0 00
Co. Ltd.Equity of Huairen 1492257 149225
Great Health 067 7067
Equity of Wuhu
LBX Yijiaren 1210000 121000
Pharmacy Chain 00 000
Co. Ltd.Equity of Anqing
1063920106392
LBX Pharmacy
00000
Chain Co. Ltd.Equity of
Shandong LBX
9579358957935
Chuntian
989
Pharmacy Chain
Co. Ltd.E-commerce of
Jiangsu Puze 1000000 100000
Pharmacy Chain 0 00
Co. Ltd.
17 stores of
730000
Hengyu 7300000
0
Pharmacy
25 stores of Hefei
2507000250700
Jingtian
000
Pharmacy
Acquisition of 7
550000
Qianjin Daye 5500000
0
stores
234 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
10 stores of Wuxi 717310
7173100
Wanfeng 0
5873132588030
Total 7173100
8765976
(2). Goodwill impairment provision
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Name of investee Increase during the Decrease during the
Opening Closing
or event forming current period current period
balance balance
goodwill Provision Disposal
255088255088
Tianjin Area
0808
Zhenjiang Area 262471 262471
Jiangsu Province 43 43
Kunshan Area 152736 152736
Jiangsu Province 03 03
Huaihua Area 499445 499445
Hunan 94 94
Changzhou Area 4498726 449872
Jiangsu Province 2 62
Chifeng Area 5738448 573844
Inner Mongolia 4 84
Taizhou Area 4796929 479692
Jiangsu Province 9 99
1169741503410267315
Total
14845193
(3). Information related to the CGU or group of CGUs where goodwill resides
√Applicable □Not Applicable
Composition and
Business segment Consistency with
Name basis of the asset
involved and basis previous years
group or portfolio
Hunan Province Mainly composed Based on internal Yes
Area of pharmacies management
within the Hunan purposes this CGU
Province area. group belongs to
The beneficiary the retail business
of the synergy segment.effect from
acquiring
pharmacies in this
area is the entire
Hunan Province
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.
235 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Therefore
goodwill is
allocated to the
CGU group.Other Areas in Anhui Mainly composed Based on internal Yes
Province of pharmacies in management
other areas of purposes this CGU
Anhui Province. group belongs to
The beneficiary the retail business
of the synergy segment.effect from
acquiring
pharmacies in this
area is the entire
Anhui Province
other areas
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Gansu and Ningxia Mainly composed Based on internal Yes
Province Area of pharmacies management
within the Gansu purposes this CGU
and Ningxia group belongs to
Province area. the retail business
The beneficiary segment.of the synergy
effect from
acquiring
pharmacies in this
area is the entire
Gansu and
Ningxia Province
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Inner Mongolia Mainly composed Based on internal Yes
Autonomous Region of pharmacies management
Area within the Inner purposes this CGU
Mongolia group belongs to
236 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Autonomous the retail business
Region area. The segment.beneficiary of the
synergy effect
from acquiring
pharmacies in this
area is the entire
Inner Mongolia
Autonomous
Region pharmacy
CGU group and
it is difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Shaanxi Province Mainly composed Based on internal Yes
Area of pharmacies management
within the purposes this CGU
Shaanxi Province group belongs to
area. The the retail business
beneficiary of the segment.synergy effect
from acquiring
pharmacies in this
area is the entire
Shaanxi Province
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Changzhou Area Mainly composed Based on internal Yes
Jiangsu Province of pharmacies management
within the purposes this CGU
Changzhou area group belongs to
in Jiangsu the retail business
Province. The segment.beneficiary of the
synergy effect
from acquiring
pharmacies in this
area is the entire
Jiangsu Province
Changzhou
237 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Nantong Area Mainly composed Based on internal Yes
Jiangsu Province of pharmacies management
within the purposes this CGU
Nantong area in group belongs to
Jiangsu Province. the retail business
The beneficiary segment.of the synergy
effect from
acquiring
pharmacies in this
area is the entire
Jiangsu Province
Nantong
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Yuncheng Area Mainly composed Based on internal Yes
Shanxi Province of pharmacies management
within the purposes this CGU
Yuncheng area in group belongs to
Shanxi Province. the retail business
The beneficiary segment.of the synergy
effect from
acquiring
pharmacies in this
area is the entire
Shanxi Province
Yuncheng
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
238 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
allocated to the
CGU group.Yangzhou Area Mainly composed Based on internal Yes
Jiangsu Province of pharmacies management
within the purposes this CGU
Yangzhou area in group belongs to
Jiangsu Province. the retail business
The beneficiary segment.of the synergy
effect from
acquiring
pharmacies in this
area is the entire
Jiangsu Province
Yangzhou
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Jiangyin Area Mainly composed Based on internal Yes
Jiangsu Province of pharmacies management
within the purposes this CGU
Jiangyin area in group belongs to
Jiangsu Province. the retail business
The beneficiary segment.of the synergy
effect from
acquiring
pharmacies in this
area is the entire
Jiangsu Province
Jiangyin
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Henan Province Area Mainly composed Based on internal Yes
of pharmacies management
within the Henan purposes this CGU
Province area. group belongs to
The beneficiary the retail business
239 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
of the synergy segment.effect from
acquiring
pharmacies in this
area is the entire
Henan Province
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Hubei Province Area Mainly composed Based on internal Yes
of pharmacies management
within the Hubei purposes this CGU
Province area. group belongs to
The beneficiary the retail business
of the synergy segment.effect from
acquiring
pharmacies in this
area is the entire
Hubei Province
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Zhenjiang Area Mainly composed Based on internal Yes
Jiangsu Province of pharmacies management
within the purposes this CGU
Zhenjiang area in group belongs to
Jiangsu Province. the retail business
The beneficiary segment.of the synergy
effect from
acquiring
pharmacies in this
area is the entire
Jiangsu Province
Zhenjiang
pharmacy CGU
group and it is
difficult to
240 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Chaohu Area Anhui Mainly composed Based on internal Yes
Province of pharmacies management
within the purposes this CGU
Chaohu area in group belongs to
Anhui Province. the retail business
The beneficiary segment.of the synergy
effect from
acquiring
pharmacies in this
area is the entire
Anhui Province
Chaohu pharmacy
CGU group and
it is difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Wuxi Area Jiangsu Mainly composed Based on internal Yes
Province of pharmacies management
within the Wuxi purposes this CGU
area in Jiangsu group belongs to
Province. The the retail business
beneficiary of the segment.synergy effect
from acquiring
pharmacies in this
area is the entire
Jiangsu Province
Wuxi pharmacy
CGU group and
it is difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Linyi Area Mainly composed Based on internal Yes
Shandong Province of pharmacies management
within the Linyi purposes this CGU
area in Shandong group belongs to
241 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Province. The the retail business
beneficiary of the segment.synergy effect
from acquiring
pharmacies in this
area is the entire
Shandong
Province Linyi
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Kunshan Area Mainly composed Based on internal Yes
Jiangsu Province of pharmacies management
within the purposes this CGU
Kunshan area in group belongs to
Jiangsu Province. the retail business
The beneficiary segment.of the synergy
effect from
acquiring
pharmacies in this
area is the entire
Jiangsu Province
Kunshan
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Taizhou Area Mainly composed Based on internal Yes
Jiangsu Province of pharmacies management
within the purposes this CGU
Taizhou area in group belongs to
Jiangsu Province. the retail business
The beneficiary segment.of the synergy
effect from
acquiring
pharmacies in this
area is the entire
Jiangsu Province
242 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Taizhou
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Guangxi Zhuang Mainly composed Based on internal Yes
Autonomous Region of pharmacies management
Area within the purposes this CGU
Guangxi Zhuang group belongs to
Autonomous the retail business
Region area. The segment.beneficiary of the
synergy effect
from acquiring
pharmacies in this
area is the entire
Guangxi Zhuang
Autonomous
Region pharmacy
CGU group and
it is difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Tianjin Area Mainly composed Based on internal Yes
of pharmacies management
within the Tianjin purposes this CGU
area. The group belongs to
beneficiary of the the retail business
synergy effect segment.from acquiring
pharmacies in this
area is the entire
Tianjin City
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.
243 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Chifeng Area Inner Mainly composed Based on internal Yes
Mongolia of pharmacies management
within the purposes this CGU
Chifeng area in group belongs to
Inner Mongolia. the retail business
The beneficiary segment.of the synergy
effect from
acquiring
pharmacies in this
area is the entire
Inner Mongolia
Chifeng
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Ningxia Health Area Mainly composed Based on internal Yes
of pharmacies management
within the purposes this CGU
Ningxia Health group belongs to
area. The the retail business
beneficiary of the segment.synergy effect
from acquiring
pharmacies in this
area is the entire
Ningxia Health
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Shanxi Health Area Mainly composed Based on internal Yes
of pharmacies management
within the Shanxi purposes this CGU
Health area. The group belongs to
beneficiary of the the retail business
synergy effect segment.from acquiring
pharmacies in this
area is the entire
244 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Shanxi Health
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Huaihua Area Mainly composed Based on internal Yes
Hunan of pharmacies management
within the Hunan purposes this CGU
Huaihua area. The group belongs to
beneficiary of the the retail business
synergy effect segment.from acquiring
pharmacies in this
area is the entire
Hunan Huaihua
pharmacy CGU
group and it is
difficult to
allocate to
individual CGUs.Therefore
goodwill is
allocated to the
CGU group.Easy Drug Mainly composed Based on internal Yes
of Hunan Easy management
Drug whose cash purposes this CGU
inflows are belongs to the
basically wholesale business
independent of segment.cash inflows
generated by
other assets or
CGUs.Changes in asset group or asset group portfolio
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
(4). Specific determination method for recoverable amount
Recoverable amount determined based on fair value less costs to sell
√Applicable □Not Applicable
Unit: RMB Currency: RMB
245 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Method of
determinin Basis for
Book Recoverab Impairmen g fair Key determinin
Item
value le amount t amount value and parameters g key
costs to parameters
sell
Revenue Revenue
growth growth
rate 2% rate 1.8%
2026- Gross Gross
Hunan
1435915 1772000 2030 2031 profit profit
Province
106 000 to margin margin
Area
perpetuity 35%-35% 35%
Discount Discount
rate rate
11.98%11.98%
Revenue
Revenue
growth
growth
rate 2%-
rate 1.8%
10%
Other 2026- Gross
Gross
Areas in 1204863 1266000 2030 2031 profit
profit
Anhui 573 000 to margin
margin
Province perpetuity 37%
35%-37%
Discount
Discount
rate
rate
10.86%
10.86%
Revenue Revenue
growth growth
rate 2% rate 1.8%
Gansu and 2026- Gross Gross
Ningxia 7779331 9430000 2030 2031 profit profit
Province 55 00 to margin margin
Area perpetuity 33%-34% 34%
Discount Discount
rate rate
10.58%10.57%
Revenue Revenue
growth growth
rate 2% rate 1.8%
Inner
2026- Gross Gross
Mongolia
5751284 7530000 2030 2031 profit profit
Autonomo
54 00 to margin margin
us Region
perpetuity 27%-27% 27%
Area
Discount Discount
rate rate
10.64%10.64%
2026- Revenue Revenue
Shaanxi
6052686 1077000 2030 2031 growth growth
Province
20 000 to rate 2% rate 1.8%
Area
perpetuity Gross Gross
246 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
profit profit
margin margin
30%-30%30%
Discount Discount
rate rate
10.61%10.61%
Revenue Revenue
growth growth
rate 0%- rate 1.8%
Changzho 2026- 2% Gross Gross
-
u Area 3106521 2640000 2030 2031 profit profit
4498726
Jiangsu 00 00 to margin margin
2
Province perpetuity 41%-42% 42%
Discount Discount
rate rate
11.34%11.38%
Revenue Revenue
growth growth
rate 2% rate 1.8%
Nantong 2026- Gross Gross
Area 4257619 4650000 2030 2031 profit profit
Jiangsu 63 00 to margin margin
Province perpetuity 25%-27% 27%
Discount Discount
rate rate
11.41%11.41%
Revenue Revenue
growth growth
rate 2% rate 1.8%
Yuncheng 2026- Gross Gross
Area 3193466 3940000 2030 2031 profit profit
Shanxi 52 00 to margin margin
Province perpetuity 33%-33% 33%
Discount Discount
rate rate
11.50%11.50%
Revenue Revenue
growth growth
rate 0%- rate 1.8%
Yangzhou 2026- 2% Gross Gross
Area 2982759 3690000 2030 2031 profit profit
Jiangsu 92 00 to margin margin
Province perpetuity 31%-32% 32%
Discount Discount
rate rate
11.50%11.50%
Revenue Revenue
Jiangyin 2026-
growth growth
Area 2225022 2410000 2030 2031
rate 2%- rate 1.8%
Jiangsu 68 00 to
3% Gross Gross
Province perpetuity
profit profit
247 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
margin margin
42%-44%35%
Discount Discount
rate rate
11.31%11.28%
Revenue Revenue
growth growth
rate 2% rate 1.8%
2026- Gross Gross
Henan
1373591 1450000 2030 2031 profit profit
Province
58 00 to margin margin
Area
perpetuity 34%-35% 35%
Discount Discount
rate rate
11.28%11.28%
Revenue Revenue
growth growth
rate 2% rate 1.8%
2026- Gross Gross
Hubei
1248455 2520000 2030 2031 profit profit
Province
52 00 to margin margin
Area
perpetuity 30%-30% 30%
Discount Discount
rate rate
11.56%11.56%
Revenue Revenue
growth growth
rate 1%- rate 1.8%
Zhenjiang 2026- 2% Gross Gross
Area 6937604 7500000 2030 2031 profit profit
Jiangsu 9 0 to margin margin
Province perpetuity 44%-45% 45%
Discount Discount
rate rate
11.36%11.36%
Revenue Revenue
growth growth
rate 2% rate 1.8%
Chaohu 2026- Gross Gross
Area 1551358 1640000 2030 2031 profit profit
Anhui 37 00 to margin margin
Province perpetuity 42%-42% 42%
Discount Discount
rate rate
11.35%11.35%
Revenue Revenue
Wuxi 2026- growth growth
Area 1532806 1610000 2030 2031 rate 2%- rate 1.8%
Jiangsu 89 00 to 6% Gross Gross
Province perpetuity profit profit
margin margin
248 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
42%-45%45%
Discount Discount
rate rate
11.32%11.32%
Revenue Revenue
growth growth
rate 2%- rate 1.8%
Linyi 2026- 2% Gross Gross
Area 3273096 3460000 2030 2031 profit profit
Shandong 07 00 to margin margin
Province perpetuity 37%-40% 40%
Discount Discount
rate rate
11.19%11.19%
Revenue Revenue
growth growth
rate 1%- rate 1.8%
Kunshan 2026- 2% Gross Gross
Area 1126875 1240000 2030 2031 profit profit
Jiangsu 34 00 to margin margin
Province perpetuity 39%-40% 40%
Discount Discount
rate rate
11.35%11.35%
Revenue Revenue
growth growth
rate 0%- rate 1.8%
Taizhou 2026- 2% Gross Gross
-
Area 2168494 1470000 2030 2031 profit profit
47969
Jiangsu 37 00 to margin margin
299
Province perpetuity 41%-42% 42%
Discount Discount
rate rate
11.41%11.41%
Revenue Revenue
growth growth
rate 2% rate 1.8%
Guangxi
2026- Gross Gross
Zhuang
2665703 3230000 2030 2031 profit profit
Autonomo
83 00 to margin margin
us Region
perpetuity 34%-34% 34%
Area
Discount Discount
rate rate
10.78%10.78%
Revenue Revenue
growth growth
2026-
rate 2%- rate 1.8%
Tianjin 1332341 1460000 2030 2031
5% Gross Gross
Area 99 00 to
profit profit
perpetuity
margin margin
30%-30%30%
249 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Discount Discount
rate rate
12.00%12.01%
Revenue Revenue
growth growth
rate 2%- rate 1.8%
2026- 7% Gross Gross
Chifeng -
6513844 5940000 2030 2031 profit profit
Area Inner 5738448
84 00 to margin margin
Mongolia 4
perpetuity 39%-40% 40%
Discount Discount
rate rate
10.50%10.50%
Revenue Revenue
growth growth
rate 2%- rate 1.8%
2026- 2% Gross Gross
Ningxia
4100117 1330000 2030 2031 profit profit
Health
5 00 to margin margin
Area
perpetuity 20%-20% 20%
Discount Discount
rate rate
10.55%10.55%
Revenue Revenue
growth growth
rate 3%- rate 1.8%
2026- 3% Gross Gross
Shanxi
1774161 2100000 2030 2031 profit profit
Health
4 0 to margin margin
Area
perpetuity 18%-18% 18%
Discount Discount
rate rate
11.50%11.50%
Revenue Revenue
growth growth
rate 3%- rate 1.8%
2026- 3% Gross Gross
Huaihua
2233180 2320000 2030 2031 profit profit
Area
840 000 to margin margin
Hunan
perpetuity 36%-37% 37%
Discount Discount
rate rate
10.46%10.48%
Revenue Revenue
growth growth
2026- rate 2%- rate 1.8%
1461679 2600000 2030 2031 9% Gross Gross
Easy Drug
6 00 to profit profit
perpetuity margin margin
62%-62%62%
Discount Discount
250 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
rate rate
10.38%10.38%
-
10830221275500
Total 1503410 / / /
12370000
45
The recoverable amount is determined by the present value of expected future cash flows
□Applicable √Not Applicable
Reasons for differences between the above information and the information or external
information used in the previous years' impairment tests
□Applicable √Not Applicable
Reasons for differences between the information used in previous years' impairment tests and
the actual situation of the current year
□Applicable √Not Applicable
(5). Performance commitments and corresponding goodwill impairment
Existence of performance commitment when goodwill was formed and the reporting period or
the preceding period falls within the performance commitment period
√Applicable □Not Applicable
Regarding the performance commitment situation of Nantong Puze
Goodwill generated from the acquisition of Nantong Puze is included in the Jiangsu Province
Nantong area CGU group for goodwill impairment testing. The performance commitment
situation at the time of acquiring Nantong Puze is as follows:
For the acquisition of Nantong Puze pharmacy business the commitment period is from the
acquisition date in 2022 to 2024. The net profit after deducting non-recurring gains and losses
shall not be less than RMB 25.10 million for 2022 not less than RMB 33.00 million for 2023
and RMB 38.00 million for 2024. If the three-year cumulative actual net profit exceeds the
cumulative committed net profit and if cash compensation has already been paid the
performance commitment payment already paid shall be refunded limited to the lower of the
amount by which the three-year cumulative actual net profit exceeds the cumulative committed
net profit and the amount of cash compensation already paid. For the pharmaceutical e-
commerce B2C business the commitment period is from the acquisition date in 2023 to 2027
with an average annual net profit of RMB 2.00 million from 2023 to 2024 and an average
annual net profit of RMB 3.00 million from 2025 to 2027. If the actual net profit is lower than
the promised net profit the difference shall be made up by the transferor.Nantong Puze fulfilled performance commitments related to net profit in 2025.There was no goodwill impairment for this area for the years 2025 and 2024.Other explanations:
√Applicable □Not Applicable
The following explains the key assumptions made when conducting the goodwill impairment
test:
CGU group Key assumptions
251 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Budget/forecast period - The basis for determination is the revenue achieved in the
revenue growth rate year prior to the budget/forecast period with the growth
rate kept unchanged or appropriately increased according
to the expected market development situation.Budget/forecast period - The basis for determination is the average gross profit
gross profit margin margin achieved in the year prior to the forecast period
with this average gross profit margin appropriately
increased according to the expected improvement in
efficiency and the expected market development
situation.Discount rate - The discount rate used is a pre-tax discount rate that
reflects the specific risks of the relevant CGU.The key assumption values regarding the market development situation are consistent with
external information sources.The allocation of the carrying amount of goodwill to CGUs or groups of CGUs is as follows:
20252024
Other Areas in Anhui
813551203813551203
Province
Changzhou Area Jiangsu
160871604205858866
Province
Hunan Province Area 568880865 568880865
Henan Province Area 83906933 83906933
Shaanxi Province Area 221741734 221741734
Tianjin Area 729565 729565
Gansu and Ningxia Province
343798301343798301
Area
Yangzhou Area Jiangsu
129307171129307171
Province
Hubei Province Area 68255187 68255187
Kunshan Area Jiangsu
4438528744385287
Province
Inner Mongolia
274462516274462516
Autonomous Region Area
Zhenjiang Area Jiangsu
3751221637512216
Province
Taizhou Area Jiangsu
63405269111374568
Province
Nantong Area Jiangsu
193510876193510876
Province
Chaohu Area Anhui
6360963063609630
Province
Wuxi Area Jiangsu
6819064461017544
Province
Jiangyin Area Jiangsu
104406459104406459
Province
Linyi Area Shandong
155590787155590787
Province
252 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Yuncheng Area Shanxi
145514810145514810
Province
Guangxi Zhuang
3486613234866132
Autonomous Region Area
Chifeng Area Inner
537415345594799829
Mongolia
Ningxia Health Area 34627634 34627634
Huaihua Area Hunan 1442312473 1442312473
Shanxi Health Area 14150943 14150943
Easy Drug 7987199 7987199
Total 5612990783 5756158728
Note: The carrying amount of goodwill includes the amount of goodwill impairment
253 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
28. Long-term deferred expenses
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Increase for
Opening Amortization Other Closing
Item the current
balance in this period decrease balance
period
Improvemen
ts to leased
fixed assets
5791400559469347214579900838807611489226908
under
operating
lease
Transfer
1525895743005384332586023694346118642010
service fee
Others 2392132 480405 894296 398559 1579682
Total 734121761 98179261 179951906 42900516 609448600
Other explanations:
Impairment provision for long-term deferred expenses
Beginning Increase for the Write-off Ending balance
balance current year during the year
Improvements
to leased fixed
11691541320051106003810951554
assets under
operating lease
Transfer service
10651401065140
fee
Total 12756681 320051 1060038 12016694
29. Deferred tax assets/deferred tax liabilities
(1). Deferred tax assets before offset
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance Opening balance
Deductible Deferred Deductible Deferred
Item
temporary income tax temporary income tax
differences Assets differences Assets
Equity incentive
110923692773092
expenses
Deductible loss 271678754 66597093 153077439 37113686
New lease standard 2171822684 483622704 2674750286 598168062
254 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Unrealized profits
from internal 54452632 13613158 47128203 11782051
transactions
Asset impairment
71025386151857259270943920592241
provision
Points reward plan 18175930 3990493 11675294 2714337
Government special
subsidies included in 8144745 2036186 9848863 2462216
deferred income
Others 857954 214520 1233539 308197
Total 2607250454 588032971 2990423063 673140790
(2). Deferred tax liabilities having not been offset
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance Opening balance
Taxable Deferred Taxable Deferred
Item
temporary income tax temporary income tax
differences Liabilities differences Liabilities
Temporary
differences on long-
term assets arising
from business
1295774593239436513121648632804122
combinations not
involving enterprises
under common
control
Changes in the fair
value of other equity
203081235077031203081235077031
instrument
investments
Fair value changes of
other non-current 5774109 1443527
financial assets
New lease standard 2049366982 451281229 2502807163 553757449
Others 206343 51586 206342 51585
Total 2199458907 488804211 2660312223 593133714
(3). Deferred tax assets or liabilities listed at net amount after offset
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance Opening balance
Balance of Balance of
Offset amount Offset amount
deferred tax deferred tax
Item of deferred tax of deferred tax
assets or assets or
assets and assets and
liabilities after liabilities after
liabilities liabilities
offsetting offsetting
255 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Deferred income tax
454059668133973303556437180116703610
assets
Deferred tax
4540596683474454355643718036696534
liabilities
(4). Details of unrecognized deferred income tax assets
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Deductible temporary
2661508735435284
differences
Deductible loss 289122860 168703659
Total 315737947 204138943
(5). Deductible losses of the unrecognized deferred tax assets will become due in the following years
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Year Closing amount Opening amount Remarks
20253375755
202680464128156652
20271434509919161781
20284150811244013765
20296913810683868453
2030 and later 156085131 10127253
Total 289122860 168703659 /
Other explanations:
√Applicable □Not Applicable
The Group believes it is not probable that sufficient taxable profit will be generated in the
future to utilize the above deductible temporary differences and deductible losses
therefore deferred tax assets for the above items have not been recognized.
30. Other non-current assets
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance Opening balance
Impairme
Item Book Impairmen Book Book Book
nt
balance t provision value balance value
provision
Prepaid
455469
engineering 4554691 5913932 5913932
1
costs
Prepaid
equity and
store business 5720000 5720000
acquisition
costs
256 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Prepaid
204421
equipment 2044211 504500 504500
1
costs
Prepaid
software
61250061250035410003541000
purchase
costs
131922
Others 1319225 1372126 1372126
5
8530621705155
Total 8530627 17051558
78
Other explanations:
None
31. Assets with restricted ownership or use rights
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing Opening
Restrict Restrict
Item Book Book Restrict Book Book Restrict
ion ion
balance value ion balance value ion
type type
Accept
ance
deposit
judicial
freezin
Cash g and
Margin
and stored-
12145 12145 13931 13931 for
bank Others value Others
87907 87907 29666 29666 accepta
balance card
nce bill
s UnionP
ay and
other
busines
s
deposit
Bank Bank
loans loans
Invest
obtaine obtaine
ment 58965 42743 Mortga 58965 44051 Mortga
d d
propert 66 48 ge 66 69 ge
through through
y
mortga mortga
ge ge
Bank Bank
loans loans
Fixed 72363 51124 Mortga 72363 54823 Mortga
obtaine obtaine
assets 5988 4382 ge 5988 8569 ge
d d
through through
257 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
mortga mortga
ge ge
Bank Bank
loans loans
Intangi obtaine obtaine
10893 92961 Mortga 10893 93712 Mortga
ble d d
3140 234 ge 3140 413 ge
assets through through
mortga mortga
ge ge
Bank Bank
loans loans
Subsidi
15910 15910 Pledge obtaine 11360 11360 Pledge obtaine
ary
06885 06885 d d 06439 06439 d d
equity
through through
pledge pledge
36440341403367631754
Total / / / /
60486747560179992256
Other explanations:
None
32. Short-term loans
(1). Classification of short-term borrowing
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Credit loans - 279806357
Letter of credit borrowing 300000000 100000000
Bill discounting borrowing 397299622 1277077733
Total 697299622 1656884090
Explanation of classification of short-term loans:
Bills discounting borrowings are the transactions of subsidiaries within the Group
settled by bank acceptance bills and the subsidiaries that receive the bills apply to the
banks for discounting the bank acceptance bills. The balance is the discounted amount of
bills that have not yet expired as at December 31 2025.
(2). Overdue short-term loans
□Applicable √Not Applicable
Among them the important short-term borrowings that are overdue and outstanding are as
follows:
□Applicable √Not Applicable
Other explanations:
√Applicable □Not Applicable
As at December 31 2025 the Group had no overdue loans.
258 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
33. Trading financial liabilities
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
34. Derivative financial liabilities
□Applicable √Not Applicable
35. Notes payable
(1). Presentation of notes payable
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Type Closing balance Opening balance
Commercial
acceptance bills
Bank acceptance bills 5008269907 4546258111
Total 5008269907 4546258111
As at December 31 2025 the Group had no outstanding bills payable.
36. Accounts payable
(1). Presentation of accounts payable
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Payables for goods 1746997615 2008964593
Total 1746997615 2008964593
(2). Significant accounts payable outstanding for more than one year or overdue
□Applicable √Not Applicable
Other explanations:
√Applicable □Not Applicable
None
37. Advances from customers
(1). Presentation of advances from customers
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Rent received in advance 16853246 18293769
Total 16853246 18293769
259 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(2). Important accounts collected in advance with an age of more than 1 year
□Applicable √Not Applicable
(3). Significant changes in book value and reasons during the reporting period
□Applicable √Not Applicable
Other explanations:
√Applicable □Not Applicable
No significant changes in the book amounts of advances from customers.
38. Contract liabilities
(1). Contract liabilities
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Advances received for
8159721476783937
goods
Franchise fees received in
2611782030764866
advance
Advances received for
8673320272833355
store purchases
Points plan 18934285 10612473
Others 4193052 4199164
Total 217575573 195193795
(2). Significant contract liabilities with an age of more than 1 year
□Applicable √Not Applicable
Contract liabilities mainly represent advances received from customers before the Group
satisfies its performance obligations. Revenue related to the contracts will be recognized
when the Group satisfies its performance obligations. Advances received from customers
are generally recognized as a result of satisfying the performance obligation within 1 year
and revenue is recognized.
(3). Significant changes in book value and reasons during the reporting period
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
39. Payroll payable
(1). Presentation of employee compensation payable
√Applicable □Not Applicable
260 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Unit: RMB Currency: RMB
Increase Decrease
Opening Closing
Item during the during the
balance balance
current period current period
I. Short-term
42855067731893573393165312996452595020
compensation
II. Post-employment
benefits-defined 1353714 312494413 312768907 1079220
contribution plan
III. Termination benefits 520365 5537557 4523018 1534904
IV. Other welfare due
within one year
Total 430424756 3507389309 3482604921 455209144
(2). Presentation of short-term compensation
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Increase Decrease
Opening Closing
Item during the during the
balance balance
current period current period
I. Wages bonuses
287831262
allowances and 379161661 2859308843 398165444
6
subsidies
II. Employee welfare
3127994897268648779160506325
expenses
III. Social insurance
24354916803011316825857115091
contributions
Of which: Medical
23300015539819215561774713445
insurance contributions
Work-related
injury insurance 9612 11102572 11111475 709
contributions
Maternity
93715293491529349937
insurance contributions
IV. Housing provident
296071751159931526433211477327
fund
V. Trade union funds
and employee education 45871951 42881983 36323101 52430833
funds
VI. Short-term paid
absences
VII. Short-term profit-
sharing plans
318935733
Total 428550677 3165312996 452595020
9
(3). Presentation of defined contribution plan
√Applicable □Not Applicable
261 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Unit: RMB Currency: RMB
Increase Decrease
Opening Closing
Item during the during the
balance balance
current period current period
1. Basic pension
13442223008858853011531991076908
insurance
2. Unemployment
949211608528116157082312
insurance contributions
3. Enterprise annuity
contributions
Total 1353714 312494413 312768907 1079220
Other explanations:
□Applicable √Not Applicable
40. Taxes and dues payable
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Value added tax (VAT) 61019783 71019842
Enterprise income tax 65284865 84147117
Individual income tax 6937706 17121218
Urban maintenance and
42837804288626
construction tax
Educational surcharge and
28823022956213
local educational surcharge
Others 12276069 11651491
Total 152684505 191184507
Other explanations:
None
41. Other payables
(1). Presentation by item
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Interest payable
Dividends payable 15203873 208088
Other payables 611707128 653327326
Total 626911001 653535414
Other explanations:
□Applicable √Not Applicable
(2). Interest payable
Presentation by classification
262 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
□Applicable √Not Applicable
Significant overdue interest payables:
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
(3). Dividends payable
Presentation by classification
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Dividends payable on
ordinary shares
Dividends of preferred
stocks\ perpetual bonds
classified as equity
instruments
Subsidiaries' minority
15203873208088
shareholders
Total 15203873 208088
Other explanations including significant dividends payable outstanding for more than 1
year should disclose the reason for non-payment:
None
(4). Other payables
Other payables presented by nature of funds
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Payables for acquisitions 64926391 54142110
Payables for pledge
115501870125284327
deposits and rent deposits
Restricted stock repurchase
-15350449
obligation
Payables for professional
9720491473332714
services
Payables for freight and
4869136240316621
miscellaneous charges
Payables for store
399637927420810
decoration
Payables for engineering
2846666149557900
costs
Payables for business
2903086435016972
promotion fees
Payables for utilities 17586803 980995
263 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Payables to subsidiaries'
4239877542398775
minority shareholders
Others 163903109 189525653
Total 611707128 653327326
Significant other payables with an aging of over 1 year or overdue
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Reason for unsettled or
Item Closing balance
carried forward
Payables to subsidiaries'
42398775
minority shareholders
Total 42398775 /
Other explanations:
□Applicable √Not Applicable
42. Liabilities held for sale
□Applicable √Not Applicable
43. Non-current liabilities due within one year
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Long-term loans due within
349722500222960000
one year
Bonds payable due within
one year
Long-term payables due
within one year
Lease liabilities due within
877491669981396466
1 year
Total 1227214169 1204356466
Other explanations:
None
44. Other current liabilities
Other current liabilities
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Short-term bonds payable
Payable refund for goods
Output tax to be
1519609114443599
transferred
Total 15196091 14443599
264 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Changes in short-term bonds payable:
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
265 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
45. Long-term loans
(1). Classification of long-term borrowing
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Pledged loans 691340000 578000000
Mortgaged loans 546350818 643186137
Guaranteed loans
Credit loans 547000000 399000000
Less: Long-term borrowings
due within one year (Note -349722500 -222960000
VII. 43)
Total 1434968318 1397226137
Explanation of long-term borrowing classification:
As of December 31 2025 the annual interest rates for the above borrowings ranged from
2.34% to 3.44% (December 31 2024: 2.49%-3.44%). As of December 31 2025 mortgage
borrowings were secured by the real estate equipment and software trademarks etc. of the
Company and Yaoshengtang Chinese Medicine Technology located in Yaoshengtang
Chinese Medicine Technology Park and Qingzhuhu Park. See Note VII. 31 for details.Mortgage borrowings were provided by the International Finance Corporation (IFC) World
Bank Group including RMB borrowings and USD borrowings. The balance of the RMB
borrowings was RMB 546350818 and loan term is from April 2021 to December 2027.Pledged borrowings are acquisition loans used for the equity acquisition of LBX Huairen in
2022. Among them the closing balance of the loan from China Construction Bank is RMB
196000000 with a loan term from July 2022 to July 2027 secured by a pledge of 20.5612%
equity of LBX Huairen; The closing balance of the loan from Ping An Bank is RMB
280000000 with a loan term from October 2022 to October 2027 secured by a pledge of
29.3731% equity of LBX Huairen; The closing balance of the loan from China Merchants
Bank's loan is RMB 211750000 with a loan term from July 2025 to July 2028 secured by
a pledge of 20% equity of LBX Huairen; The closing balance of the loan from Chang' an
Bank's is RMB 3590000 with a loan term from January 2025 to January 2028.The closing balance of the credit loan from China Construction Bank in 2024 is RMB
198000000 with a loan term from February 2024 to February 2027; The closing balance
of the credit loan from China Construction Bank in 2025 is RMB 100000000 with a loan
term from September 2025 to September 2028; The closing balance of the credit loan from
China Merchants Bank was RMB 149000000 with a loan term from December 2024 to
December 2027; The closing balance of the credit loan from the Bank of China was
RMB100000000 with a loan term from September 2025 to September 2028.Other explanations:
□Applicable √Not Applicable
266 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
46. Bonds payable
(1). Bonds payable
□Applicable √Not Applicable
267 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(2). Details of bonds payable: (excluding other financial instruments classified as financial liabilities such as preference stocks and perpetual debts)
□Applicable √Not Applicable
(3). Explanation of convertible corporate bonds
□Applicable √Not Applicable
Accounting treatment and basis for conversion of equity
□Applicable √Not Applicable
(4). Explanation about other financial instruments classified as financial liabilities
Basic information on preferred shares issued externally at the closing date perpetual bonds and other financial instruments
□Applicable √Not Applicable
Changes in preferred shares perpetual bonds and other financial instruments issued and outstanding at the end of the period
□Applicable √Not Applicable
Explanation for classifying other financial instruments as financial liabilities
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
268 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
47. Lease liabilities
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Lease liabilities 2082322669 2503912510
Less: lease liabilities due
877491669981396466
within one year (Note VII. 43)
Total 1204831000 1522516044
Other explanations:
None
48. Long-term payables
Presentation by item
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
Long-term payables
(1).Long-term payables presented by nature
□Applicable √Not Applicable
Special payables
(1).Special payables by nature
□Applicable √Not Applicable
49. Long-term employee compensation payable
□Applicable √Not Applicable
50. Provisions
□Applicable √Not Applicable
51. Deferred income
Deferred income
√Applicable □Not Applicable
Unit: RMB Currency: RMB
269 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Increase Decrease
Opening during the during the Closing Reason for
Item
balance current current balance formation
period period
Government
12925575-236930110556274
grants
Total 12925575 - 2369301 10556274 /
Other explanations:
□Applicable √Not Applicable
52. Other non-current liabilities
□Applicable √Not Applicable
53. Share capital
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Increase or decrease in the current period (+ -)
Capital
Opening Issued Closing
Donate reserves
balance New Others Subtotal balance
d shares Share
shares
transfer
Shares
subject to
restrictio
ns on
sale
Shares
held by -
domestic 2314441 231444
natural 1
persons
Shares
not
subject to
restrictio
ns on
sale:
RMB
7579167375889023
ordinary 973503
36
shares
Total -
7602311775889023
number 134093
46
of shares 8
270 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Other explanations:
Note 1: In 2025 due to the departure of grantees of the Company's restricted stock resulting
in the lapse of some restricted stock the Company repurchased and cancelled the
corresponding restricted stock leading to a decrease in share capital by RMB 135561
(Note XV).Note 2: The first lock-up period of the reserved grant portion of the Company's 2022
Restricted Stock Incentive Plan expired on July 20 2024 and the second lock-up
period of the first grant portion of the Company's 2022 Restricted Stock Incentive
Plan expired on September 28 2024. The conditions for unlocking and releasing the
restrictions on sale have been fulfilled. Handle matters on releasing the restrictions
on sale for incentive recipients of 973503 shares satisfying such conditions.Note 3: According to the provisions of the 2022 Restricted Stock Incentive Plan of the
Company on "releasing the restrictions on sale for restricted stocks" and "handling of
changes in personal situations of incentive recipients" 32 incentive recipients under
the 2022 Restricted Stock Incentive Plan have resigned; The performance at the
company level was not up to standard during the third unlocking period of the first
grant and the second unlocking period of the reserved grant. The Company will
repurchase and cancel a total of 1205377 restricted stocks that have been granted to
the above incentive recipients but have not yet been unlocked.
54. Other equity instruments
(1). Basic information on preferred shares issued externally at the closing date perpetual bonds
and other financial instruments
□Applicable √Not Applicable
(2). Changes in preferred shares perpetual bonds and other financial instruments issued and
outstanding at the end of the period
□Applicable √Not Applicable
Changes in other equity instruments during the current period explanation of reasons for
change and basis for related accounting treatment:
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
55. Capital reserve
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Increase during Decrease during
Opening
Item the current the current Closing balance
balance
period period
271 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Capital
premium
(share
premium)
Capital
contributed by 139867494 139867494
shareholders
Issuance of
34001651273400165127
new shares
Capital
reserves
-426605754-426605754
converted to
share capital
Conversion of
convertible 323009972 323009972
bonds to shares
Equity
12663447115133368111501103
incentive plan
Others 1910628 1910628
Other capital
reserves
Equity
1109236811092368
incentive plan
Changes in
minority -1594515252 271813014 -1866328266
interests
Total 1970466686 11092368 286946382 1694612672
Other explanations including changes in the current period and reasons for changes:
This year the Company's equity incentive plan led to changes in capital reserves. For details
see Note XV.For changes occurred in the Group's minority interests this year see Note X. 2.
56. Treasury stock
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Increase during Decrease during
Opening
Item the current the current Closing balance
balance
period period
2025
Equity
incentive 16935356 - 16935356 -
repurchase
Total 16935356 - 16935356
272 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Other explanations including changes in the current period and reasons for changes:
Note 1: Due to the repurchase of restricted shares treasury shares were reduced by
16935356 in total.
57. Other comprehensive income
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount for the current period
Less:
Less:
amount
amount
recogni
recogni
zed in
zed in
other
other
Amount compre
compre
incurre hensive Attribut
hensive
d income Attribut able to
income Less:
Openin before during able to minorit
during income Closing
Item g income the parent y
the tax Balance
Balance tax previou compan shareho
previou expense
during s period y after lders
s period s
the and tax after
and
current carried tax
transfer
period over to
red into
retained
the
earning
current
s of the
profit
current
or loss
period
I. Other
compre
hensive
income
that
cannot
be
reclassi
fied
into
profit
or loss
Includi
ng:
changes
from
re-
measur
ement
of
273 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
defined
benefit
plan
Other
compre
hensive
income
that
cannot
be
carried
over to
profit
or loss
under
the
equity
method
Chan
ges in
the fair
value of
other
equity
instrum
ent
investm
ents
Chan
ges in
the fair
value of
the
enterpri
se's
own
credit
risks
II.Other
compre
hensive
income
that
will be
reclassi
fied to
274 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
profit
or loss
Of
which:
Other
compre
hensive
income
under
equity
method
that can
be
transfer
red to
profit
or loss
Chan
ges in
the fair
value of
other
debt
investm
ent
Amo
unts of
the
financia
l assets
that are
reclassi
fied
into
other
compre
hensive
income
Credi
t
impair
ment
provisio
ns of
other
debt
investm
ent
Cash
flow
275 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
hedging
reserves
Forei
gn
currenc
y
translati
on
differen
ces
III.Cumula
tive
balance
of other
compre
hensive
income
attribut
able to
the
owner
of the
parent
compan
y in the
consoli
dated
balance
sheet:
2025
Chan
ges in
the fair
value of
other 15231 15231
equity 092 092
instrum
ent
investm
ents
2024
Chan
ges in
1523115231
the fair
092092
value of
other
276 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
equity
instrum
ent
investm
ents
Total
other
1523115231
compre
092092
hensive
income
Other explanations including the adjustment of the effective portion of cash flow hedging
gains or losses to the initial recognition amount of the hedged item:
None
58. Special reserve
□Applicable √Not Applicable
59. Surplus reserve
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Increase during Decrease during
Item Opening balance Closing balance
the current period the current period
Statutory
30154964049239396-350789036
surplus reserve
Discretionary
surplus reserve
Reserve fund
Enterprise
development
fund
Others
Total 301549640 49239396 - 350789036
Explanation of surplus reserves including changes in the current period and reasons for
changes:
According to the Company Law and the Company's Articles of Association the Company appropriates
10% of its net profit to the statutory surplus reserve. Appropriation is no longer required when the
cumulative amount of the statutory surplus reserve reaches 50% or more of the Company's registered
capital.
60. Undistributed profits
√Applicable □Not Applicable
277 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Unit: RMB Currency: RMB
Item Current period Previous period
Undistributed profit at end of
previous period before 3550314034 3687106079
adjustment
Total adjustment of the opening
balance of undistributed profits
(increase + decrease -)
Opening undistributed profit after
35503140343687106079
adjustment
Add: Net profit attributable to
owners of the parent company 381846593 519063405
during the current period
Less: Appropriation of statutory
4923939618483481
surplus reserve
Appropriation of
discretionary surplus reserve
Appropriation to general risk
reserve
Dividends payable on
167052282637371969
ordinary shares
Dividends on ordinary shares
transferred to share capital
Closing undistributed profit 3715868949 3550314034
Adjustment of the opening undistributed profit:
1. The opening and closing undistributed profit affected by retroactive adjustment as per
the Accounting Standards for Business Enterprises and its relevant new rules was RMB 0.
2. Due to changes in accounting policies there was no influence on the opening
undistributed profits which remained at RMB 0.
3. The opening and closing undistributed profit affected by change of correction of major
accounting error was RMB 0.
4. The opening and closing undistributed profit affected by change of combination scope
due to common control was RMB 0.
5. The other adjustments led to opening undistributed profit of RMB 0.
Note 1: As considered at the ninth meeting of the fifth Board of Directors held on April 29
2025 the Company distributed cash dividends at RMB 0.08 (tax-inclusive) per share to all
shareholders. As of March 31 2025 the total share capital of the Company was 760095613
shares based on which total cash dividends of RMB 60807649 (tax-inclusive) were
distributed.Note 2: As considered at the eleventh meeting of the fifth Board of Directors and the 2024
general shareholders' meeting held on June 30 2025 the Company intends to distribute cash
dividends at RMB 0.14 (tax-inclusive) per share to all shareholders. As of October 28 2025
the total share capital of the Company was 758 890236 shares based on which total cash
dividends of RMB 106244633 (tax-inclusive) were distributed.
278 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
61. Operating income and operating cost
(1). Details of operating income and operating cost
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during the current Amount incurred in the previous
Item period period
Revenue Cost Revenue Cost
Main
22120045614149830088602221313276714850489230
business
Other
1165697337172587514447742891843225
business
Total 22236615347 15054734735 22357610195 14942332455
(2). Breakdown information of operating income and operating costs
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Retail segment Wholesale segment Other segment Total
Contract
Operatin Operati Operat
classificat Operatin Operatin Operatin Operatin Operatin
g ng ing
ion g income g costs g costs g income g costs
income income costs
Product
type
Sale 186008 123469 300370 263002 49398 16626
of goods 46472 47773 7956 1787 665 784 216539 149935
5309396344
Rend 513997 372235
ering of 830 4 513997 372235
services 830 4
Leas 68664 57416
ing 424 037 686644 574160
services 24 37
Classifica
tion by
operating
region
Chin 191148 123506 300370 263002 11806 74042 222366 150547
a 44302 70127 7956 1787 3089 821 15347 34735
Classifica
tion by
timing of
product
transfer
Tran 186008 123469 300370 263002 49398 16626
sferred at 46472 47773 7956 1787 665 784
216539149935
a point in
5309396344
time
Tran 513997 372235 68664 57416
sferred 830 4 424 037 582662 611383
over time 254 91
Total 191148 123506 300370 263002 11806 74042 222366 150547
44302701277956178730898211534734735
279 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Other explanations:
□Applicable √Not Applicable
(3). Description of performance obligation
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Nature of
goods to Types of
Time of be quality
Signific Expected
performan transferr Whether assurance and
ant amounts to
Item ce ed as principal related
payment be refunded
obligation committe obligor obligations
terms to customers
fulfillment d by the offered by
Compan the Company
y
Mainly
Payment sales of
Sale of Upon
upon pharmac Yes None None
goods delivery
arrival eutical
products
Mainly
providin
g
informati
During on
Rendering Consulti
service consultin Yes None None
of services ng fees
period g
promotio
nal
services
etc.Total / / / / /
The Group recognizes revenue after the transfer of control of goods. For retail customers
payment is made upon delivery of goods. For wholesale customers the Group adopts a
combination of prepayment and credit sales. Contract payments for credit sales customers
are usually due within 30 or 60 days after delivery of goods.The Group recognizes revenue over the period of service provision. Contract payment
settlement is based on contract stipulations.Contract payments are usually due within one year. Contracts typically do not contain
significant financing components. Some contracts have variable considerations such as cash
discounts and price protection and the estimation of variable consideration is usually not
constrained.
(4). Explanation of allocation to remaining performance obligations
√Applicable □Not Applicable
280 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
As of the end of the reporting period the revenue corresponding to performance obligations
for contracts already signed but not yet performed or fully performed had been RMB
217575573 including:
(5). Significant contract changes or adjustments to transaction prices
□Applicable √Not Applicable
Other explanations:
None
62. Taxes and surcharges
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during the Amount incurred in the
Item
current period previous period
Urban maintenance and
2949666231271321
construction tax
Educational surcharge 21580004 22830957
Property tax 8581767 8036619
Stamp duty 16790734 17426936
Others 1438863 1337156
Total 77888030 80902989
Other explanations:
None
63. Selling expenses
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during Amount incurred in the
Item
the current period previous period
Wages bonuses social security
26595556852819881888
and employee benefits
Amortization of right-of-use
11540865081222169498
assets
Depreciation and amortization 259449862 260942278
Business promotion fees 101474331 115570844
Utilities 118144964 116382565
Payment platform service fees 80800569 76551080
Freight and miscellaneous
110559089105162132
charges
Office and network expenses 49056176 54360851
Property management and
7480429985964562
repair fees
Labor outsourcing fees 38236800 35999268
Others 53054285 54450919
Total 4699222568 4947435885
281 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Other explanations:
None
64. Administrative expenses
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during Amount incurred in
Item
the current period the previous period
Wages bonuses social security and
722035396750001484
employee benefits
Depreciation and amortization 191086176 149210202
Professional service fees 97382388 81831930
Office and utilities 63330024 59097198
Business entertainment expenses 44830047 43786301
Inventory retirement or gains/losses 78436139 63542785
Travel expenses 22618274 37521636
Planning fees 23968421 34254111
Equity incentive expenses 11092369 -1901800
Others 33321697 40321255
Total 1288100931 1257665102
Other explanations:
None
65. R&D expenses
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during Amount incurred in
Item
the current period the previous period
R&D personnel remuneration 47551543 1340075
Outsourced R&D expenditures 1011519
Depreciation and amortization
2122503158934
expenses
Others 385984 514588
Total 51071549 2013597
Other explanations:
None
66. Financial expenses
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during Amount incurred in
Item
the current period the previous period
Interest expense 130270754 178247831
Less: Interest income 13369752 20103612
Handling fees 13290866 13257306
Exchange gains/losses 1254199
Others 232565 370220
Total 130424433 173025944
282 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Other explanations:
None
67. Other income
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during the Amount incurred in the
Classification by nature
current period previous period
Government grants related
7753038777685603
to daily activities
Handling fee refund for
withholding individual 1676323 679746
income tax
Total 79206710 78365349
Other explanations:
None
68. Investment income
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during Amount incurred in the
Item
the current period previous period
Income from long-term equity
investments accounted for using -4069447 2831526
the equity method
Investment income from disposal
of long-term equity investments
Investment income from trading
financial assets during holding 3010350 1206496
period
Dividend income from other equity
instrument investments during the
holding period
Interest income from debt
investments during the holding
period
Interest income from other debt
investments during the holding
period
Investment income from disposal
1955891-
of trading financial assets
Investment income from disposal
of other equity instrument
investments
Investment income from disposal
of debt investments
Investment income from disposal
of other debt investments
283 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Debt restructuring income
Investment income from disposal
--1309915
of stores
Total 896794 2728107
Other explanations:
None
69. Net exposure hedging income
□Applicable √Not Applicable
70. Income from changes in fair value
□Applicable √Not Applicable
71. Credit impairment losses
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during Amount incurred in the
Item
the current period previous period
Bad debt losses on notes receivable
Bad debt losses on accounts
16070397212178
receivable
Bad debt losses on other
17669524935712
receivables
Impairment losses on debt
investments
Impairment losses on other debt
investments
Bad debt losses on long-term
678285874134
receivables
Impairment losses related to
financial guarantees
Total 18515634 6022024
Other explanations:
None
72. Asset impairment loss
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during Amount incurred in the
Item
the current period previous period
I. Impairment losses of contract
assets
284 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
II. Loss of decline in value of
inventory and loss on
85397602881743
impairment of contract
performance cost
III. Impairment losses on long-
term equity investments
IV. Impairment losses on
64503967-
investment properties
V. Impairment losses on fixed
assets
VI. Impairment losses on
engineering materials
VII. Impairment losses on
3364512-
construction in progress
VIII. Impairment losses on
productive biological assets
IX. Impairment losses on oil and
gas assets
X. Impairment losses on
20390112-
intangible assets
XI. Impairment losses on
150341045107544480
goodwill
XII. Impairment losses on long-
320051754617
term deferred expenses
XIII. Others
XIV. Impairment losses on
390324421694
prepayments
Total 251362691 111202534
Other explanations:
None
73. Gains on disposal of assets
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during the Amount incurred in the
Item
current period previous period
Gains or losses on disposal
-6160879-6427167
of fixed assets
Gains or losses on disposal
26185531896909
of right-of-use assets
Total -3542326 -4530258
Other explanations:
None
74. Non-operating income
Details of non-operating income
285 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred Amount included in
Amount incurred in
Item during the current current non-recurring
the previous period
period gains and losses
Amounts no longer
751853855724597518538
required to be paid
Compensation or
16464224571348416464224
deposits received
Extended cashier
6871331160813687133
payments
Others 2645370 1580631 2645370
Total 27315265 14027387 27315265
Other explanations:
□Applicable √Not Applicable
75. Non-operating expenses
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred Amount included in
Amount incurred in
Item during the current current non-recurring
the previous period
period gains and losses
External donations 5025644 2405459 5025644
Fines or
compensation 5740612 7112793 5740612
payments
Losses on clearing
intercompany 842225 1002260 842225
balances
Others 1393848 1108254 1393848
Total 13002329 11628766 13002329
Other explanations:
None
76. Income tax expenses
(1). Statement of income tax expenses
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during the Amount incurred in the
Item
current period previous period
Current income tax expenses 234941075 262598298
Deferred tax expenses -19221684 -31744968
Total 215719391 230853330
286 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(2). Adjustment process of accounting profits and income tax expenses
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Amount incurred during the current period
Total profit 756168890
Income tax expense calculated at the
189042223
statutory/applicable tax rate
Impacts of application of different tax
-69932628
rates to subsidiaries
Impacts of adjustment to income tax in the
5938459
previous period
Impacts of non-taxable income -882834
Effect of non-deductible costs expenses
63744183
and losses
Impacts of use of the deductible loss of
deferred tax assets not recognized in the -3438901
previous period
Impacts of deductible temporary
difference or deductible loss of
31248889
unrecognized deferred tax assets during
the current period
Income tax expenses 215719391
Other explanations:
√Applicable □Not Applicable
Note 1: The income taxes of the Group shall be provided as per the estimated taxable
incomes obtained in China and applicable tax rate. Taxes on taxable income derived from
other regions are calculated based on the prevailing laws interpretations announcements
and practices in the countries/jurisdictions where the Group operates at the applicable tax
rates.
77. Other comprehensive income
√Applicable □Not Applicable
See the notes for details
78. Items of cash flow statement
(1).Cash relating to operating activities
Other cash received from operating related activities
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during Amount incurred in the
Item
the current period previous period
Government grants 76837409 75382001
Interest income 13369752 20103612
Compensation received 16464224 5713484
Others 3332503 2741444
Total 110003888 103940541
287 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Explanation of other cash received from operating activities:
None
Other cash paid related to operating activities
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during Amount incurred in the
Item
the current period previous period
Office expenses and
196256992202326001
miscellaneous expenses
Business promotion fees 131428860 135927400
Professional service fees 85953235 86318492
Utilities 129654476 130166160
Payment platform handling fees 80800569 76551080
Business entertainment expenses 51916942 37521636
Travel expenses 26780265 59340729
Bank card handling fees 13523431 12421030
Donation expenditure 4917457 2405459
Store opening expenses 163599 7148120
Others 49936753 120625338
Total 771332579 870751445
Explanation of other cash paid related to operating activities:
None
(2).Cash related to investing activities
Cash received from significant investing activities
□Applicable √Not Applicable
Cash paid for significant investing activities
□Applicable √Not Applicable
Other cash received related to investing activities
□Applicable √Not Applicable
Other cash paid related to investing activities
□Applicable √Not Applicable
(3).Cash related to financing activities
Other cash received related to financing activities
□Applicable √Not Applicable
Other cash paid related to financing activities
288 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during the Amount incurred in the
Item
current period previous period
Cash paid for purchasing
36725000096736267
minority interests in subsidiaries
Repurchase of restricted stocks 16474307 3862887
Lease payments made 1200932789 1279336205
Total 1584657096 1379935359
Explanation of other cash paid related to financing activities:
None
Changes in liabilities arising from financing activities
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Increase during the Decrease during the
Opening current period current period Closing
Item
balance Cash Non-cash Cash Non-cash balance
changes changes changes changes
1656881486752446341697299
Short-term loans - -
40907357825622
10104276975937534878116852
Other payables - 461049
2194567648
Long-term
borrowings
(including non- 162018 417340 2528353 178469
--
current liabilities 6137 000 19 0818
due within one
year)
Lease liabilities
(including non-
25039178819561209785208232
current liabilities - -
2510384792669
due within one
year)
58820219040915579544662450468116
Total 461049
495673579834905757
(4).Explanation of cash flows reported on a net basis
□Applicable √Not Applicable
(5).Significant activities that do not involve cash inflow or outflow for the period but might affect
the financial position of the Company or might affect the cash flow of the Company in the future
and the financial impact
√Applicable □Not Applicable
289 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
20252024
Endorsement transfer of bank acceptance
bills received from selling goods and
providing services 397735172 210574555
79. Supplementary information to the cash flow statement
(1). Supplementary information to the cash flow statement
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount of the current Amount of the previous
Supplementary information
period period
1. Reconciliation of net profit to cash flow from operating activities:
Net profit 540449499 685118154
Add: Asset impairment
251362691111202534
provisions
Credit impairment losses 18515634 6022024
Depreciation of fixed assets oil
& gas assets and capitalized 158076917 166066043
biological assets
Amortization of right-of-use
11715505061234580552
assets
Amortization of intangible assets 99732061 63214890
Depreciation of investment
91449089144907
property
Amortization of long-term
179951906183902367
deferred expenses
Loss from disposal of fixed
assets intangible assets and other
35423264530258
long-term assets (income
indicated with "-")
Loss on disposal of fixed assets
(income indicated with "-")
Loss from changes in fair value
(income indicated with "-")
Financial expenses (income
130270754180708526
indicated with "-")
Investment loss (income
-896794-2728107
indicated with "-")
Decrease in deferred tax assets
-17269693-47202541
(increase indicated with "-")
Increase in deferred tax liabilities
-195199115457573(decrease indicated with "-"）
Decrease in inventories (increase
-87253722576064717
indicated with "-")
Decrease in operating receivables
469254997-633155554
(increase indicated with "-")
290 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Increase in operating payables
218153750-526467546
(decrease indicated with "-")
Others
Net cash flows from operating
31426337492026458797
activities
2. Significant investing and financing activities not involving cash receipts and
payments:
Debt converted to capital
Convertible corporate bonds due
within one year
Fixed assets acquired under
finance leases
3. Net change in cash and cash equivalents:
Closing balance of cash 1143841378 986735653
Less: opening balance of cash 986735653 936501157
Add: closing balance of cash
equivalents
Less: opening balance of cash
equivalents
Net increase in cash and cash
15710572550234496
equivalents
(2). Net cash paid for the acquisition of subsidiaries during the current period
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount
Cash or cash equivalents paid during the period for
business combinations occurred in the current period
Less: Cash and cash equivalents held by subsidiaries on
the acquisition date
Add: Cash or cash equivalents paid during the current
3200000
period for business combinations occurred in prior periods
Net cash paid for acquiring subsidiaries 3200000
Other explanations:
None
(3). Net cash received from disposing of subsidiaries during the period
□Applicable √Not Applicable
(4). Composition of cash and cash equivalents
√Applicable □Not Applicable
291 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Unit: RMB Currency: RMB
Item Closing balance Opening balance
I. Cash 1143841378 986735653
Including: cash on hand 8144364 7404677
Bank deposits available for
1104812748931407077
payment at any time
Other cash and bank balances
available for payment at any 30884266 47923899
time
Deposits with central bank
available for payment
Placements with other banks
Funds lent to other banks
II. Cash equivalents
Of which: Bond investments
maturing within three months
III. Closing balance of cash and
1143841378986735653
cash equivalents
Of which: Cash and cash
equivalents with restricted use
within the parent company or
group subsidiaries
(5). Situation where the scope of use is restricted but still presented as cash and cash equivalents
□Applicable √Not Applicable
(6). Cash and bank balances that do not belong to cash and cash equivalents
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
Note to the Items in the Statement of Changes in Owners' Equity
Explain the name and adjustment amount of the "other" item that adjusts the balance at the
end of the previous year:
□Applicable √Not Applicable
80. Foreign currency monetary items
(1).Foreign currency monetary items
□Applicable √Not Applicable
292 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(2).Explanation of overseas operating entities including the main overseas operating locations
functional currency and selection basis of important overseas operating entities and reasons for
changes in functional currency
□Applicable √Not Applicable
81. Leases
(1). The Company as a lessee
√适用□不适用
Variable lease payments not included in the lease liability
□Applicable √Not Applicable
Lease expenses for short-term leases or low-value assets treated with simplification
□Applicable √Not Applicable
Sale-and-leaseback transactions and judgment basis
□Applicable √Not Applicable
Total cash outflow related to leases 1209785479 (Unit: Yuan Currency: RMB)
2025Year 2024Year
Interest expense on lease liabilities 72703866 101615298
Income from subleasing right-of-use assets 65947211 72267940
Total cash outflow related to leases 1209785479 1279085103
The leased assets rented by the Group include houses and buildings used during operations.The lease term is typically 1 to 20 years.
(2). As a lessor
Operating leases as lessor
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Including: the income
related to the variable lease
Item Lease income
payment not included in the
lease payment
Lease income 68664424
Total 68664424
The Group leases out part of its self-owned buildings for a lease term of 2 years forming operating leases;
the Group leases out part of its leased-in buildings typically for a lease term of 1-5 years forming
operating leases. In 2025 the Group's income from the lease of houses and buildings was RMB 68664424
(see Note VII. 61). Leased Houses and Buildings. Presented in investment real estate. See Notes VII.20.Finance leases as a lessor
□Applicable √Not Applicable
293 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Reconciliation table of undiscounted lease receivables and net investment in leases
□Applicable √Not Applicable
Undiscounted lease receivables in the next five years
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Annual undiscounted lease receivables
Item
Closing amount Opening amount
First year 37679195 49968727
2nd year 22197579 22975027
3rd year 13692585 14977810
Fourth year 10005288 18252442
Fifth year
Total undiscounted lease
payments receivable due 83574647 106174006
after five years
(3). Recognition of profit or loss on finance lease sales as a manufacturer or distributor
□Applicable √Not Applicable
Other explanations:
None
82. Data resources
□Applicable √Not Applicable
83. Others
□Applicable √Not Applicable
VIII. R&D expenditures
1、 Presented by nature of expense
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during Amount incurred in
Item
the current period the previous period
R&D personnel remuneration 82346317 130104680
Outsourced R&D expenditures 4671555 4447043
Depreciation and amortization
2586852158934
expenses
Others 595083 1301274
Total 90199807 136011931
Including: expensed R&D
510715492013597
expenditures
Capitalized R&D expenditures 39128258 133998334
Other explanations:
294 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
None
2、 Development costs of R&D projects eligible for capitalization
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Increase for the current Decrease for the current
period period
Internal Carried
Opening Recognize Closing
Item developme over to the
Balance d as Balance
nt Others current
intangible
expenditur profit or
assets
es loss
Enterprise
Digital
Platform
and New 7429023
Retail 5
Constructio
n Project 4993558 2435465
Phase I 4 1 -
Enterprise
Digital
Platform
and New
Retail
Constructio
n Project 1477360 1477360
Phase II 7 7
Total 4993558 3912825 7429023 1477360
4857
Significant capitalized R&D projects
□Applicable √Not Applicable
Impairment provision for development costs
□Applicable √Not Applicable
Other explanations:
None
3、 Significant purchased R&D projects
□Applicable √Not Applicable
IX. Changes in the scope of consolidation
1、 Business combination not involving enterprises under common control
√Applicable □Not Applicable
295 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(1). Business combinations under uncommon control during the current period
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Net Cash
profits of flow of
Propo Deter Income of
the the
rtion Equit minati the
Equit Equit acquiree acquiree
Nam of y Acqu on acquiree
y y from the from the
e of acqui acqui isitio basis from the
acqui acqui acquisiti acquisiti
acqui red sition n of acquisition
sition sition on date on date
ree equit meth date acquisi date to the
time cost to the to the
y od tion end of the
end of end of
(%) date period
the the
period period
Actuall
y
obtain
10
control
store
Not over Not
s of 7173 Acqui 1009297
2025 appli 2025 the 571643 applicabl
Wuxi 100 sition 8
cable merge e
Wanf
d party
eng
or the
acquire
e
Other explanations:
On March 18 2024 the Company's subsidiary Wuxi Sanpintan Pharmaceutical Chain Co.Ltd. entered into the Business and Asset Acquisition Agreement with Wuxi Wanfeng
Pharmacy Co. Ltd. Wuxi Wanjia Laikang Pharmacy Co. Ltd. etc. acquiring the relevant
assets and business of 10 stores controlled by them at RMB 7173100. Goodwill of RMB
7173100 was recognized and the transaction was formally closed in 2025.
(2). Cost of combination and goodwill
□Applicable √Not Applicable
(3). Identifiable assets and liabilities of the acquiree at the acquisition date
□Applicable √Not Applicable
(4). Gain or loss arising from the re-measurement of equity held prior to the acquisition date at fair
value
Whether there were transactions achieving control through multiple transactions in a step-
by-step manner and acquiring control during the reporting period
□Applicable √Not Applicable
296 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(5). Explanations regarding the inability to reasonably determine the merger consideration or the
fair value of identifiable assets and liabilities of the acquiree on the acquisition date or at the
end of the combination period
□Applicable √Not Applicable
(6). Other Explanations
□Applicable √Not Applicable
2、 Business combinations involving enterprises under common control
□Applicable √Not Applicable
3、 Reverse purchase
□Applicable √Not Applicable
297 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
4、 Disposal of subsidiaries
Whether there were transactions or events in the current period that resulted in the loss of control over subsidiaries
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
Whether there is a situation of disposing of investment in a subsidiary step-by-step through multiple transactions leading to loss of control in the
current period
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
5、 Changes in the scope of consolidation for other reasons
Explain the changes in the scope of consolidation due to other reasons (e.g. establishment of new subsidiaries liquidation of subsidiaries) and
relevant circumstances:
√Applicable □Not Applicable
Newly established subsidiaries of the Group in 2025 include Tianjin LBX Qiyuan Pharmacy Co. Ltd. Yangzhong Baqiao TCM
Comprehensive Clinic Co. Ltd. LBX Pharmacy (Feixi) Co. Ltd. Laobaixing Baixin (Luoyang) Health Management Consulting Co. Ltd.Changsha Easy Drug Technology Co. Ltd. Hangzhou Easy Drug Technology Co. Ltd. and Guangzhou Easy Drug Technology Co. Ltd.Place of registration Business nature Total shareholding Total voting rights Reason for no longer
ratio of the Group (%) ratio enjoyed by the being a subsidiary
Group (%)
Ningxia Huirentang Wuzhong City Pharmaceutical 100 100 Deregistration
Pharmaceutical Retail
Chain Co. Ltd.Shenzhen Baixinji Shenzhen Information 100 100 Deregistration
Information Municipality technology
Technology Co. Ltd. consulting
298 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Anhui Baixingyuan Hefei City Pharmaceutical 100 100 Deregistration
Pharmacy Luyang Retail
Co. Ltd.Baiyin Xiangjitang Baiyin City Pharmaceutical 100 100 Deregistration
Chain Retail
Pharmaceutical Co.Ltd.Hefei Baizhikang Hefei City Clinic 100 100 Deregistration
Internal Medicine
Clinic Co. Ltd.
6、 Others
□Applicable √Not Applicable
299 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
X. Equity in other entities
1. Equity in subsidiaries
(1). Components of the enterprise group
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Subsidia Principal Register Place of Shareholding ratio Acquisitio
Business
ry place of ed registrati (%) n
nature
Name business capital on Direct Indirect Method
Hunan Huaihua RMB Huaihua Pharmac 100%
LBX 127 eutical
Huairen million Retail
Pharma
cy
Chain
Co.Ltd.Forworl Yangzho RMB Yangzho Pharmac 100%
d u 100 u eutical
Medicin million Wholesal
e e
Technol
ogy
(Jiangsu
) Co.Ltd.Changs Changsh RMB 90 Changsh Business 100%
ha a million a services
Faxiang
di
Industri
al Co.Ltd.Forworl Changsh RMB 87 Changsh Pharmac 100%
d a million a eutical
Medicin Wholesal
e e
Logistic
s
(Hunan)
Co.Ltd.Jinan Jinan RMB 85 Jinan Business 100%
Xinchen million services
g
Enterpri
se
Manage
ment
300 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Co.Ltd.LBX Hefei RMB 75 Hefei Pharmac 100%
Pharma million eutical
cy Retail
Chain
(Anhui)
Co.Ltd.Xi'an Xi'an RMB Xi'an Pharmac 100%
Longshe 66.60 eutical
ng million Retail
Pharma
ceutical
Co.Ltd.Chifeng Chifeng RMB 60 Chifeng Pharmac 100%
LBX million eutical
Pharma Wholesal
cy e
Chain
Co.Ltd.Hunan Changsh RMB 60 Changsh Informati 100%
Baibi a million a on
Technol technolo
ogy Co. gy
Ltd. consultin
g
Chifeng Chifeng RMB 58 Chifeng Pharmac 100%
Renchu million eutical
an Wholesal
Pharma e
ceutical
Co.Ltd.Hunan Changsh RMB 55 Changsh Chinese 100%
Yaoshe a million a medicine
ngtang R&D
Chinese
Medicin
e
Technol
ogy Co.Ltd.LBX Wuhan RMB 50 Wuhan Pharmac 100%
Pharma million eutical
cy Retail
Chain
301 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(Hubei)
Co.Ltd.LBX Guangzh RMB 50 Guangzh Pharmac 100%
Pharma ou million ou eutical
cy Retail
Chain
Guangd
ong Co.Ltd.Forworl Tianjin RMB 40 Tianjin Pharmac 100%
d million eutical
Medicin Wholesal
e e
(Tianjin
) Co.Ltd.Forworl Hefei RMB Hefei Pharmac 100%
d 30.10 eutical
Medicin million Wholesal
e e
Logistic
s
(Anhui)
Co.Ltd.LBX Lanzhou RMB 30 Lanzhou Pharmac 100%
Pharma million eutical
cy Retail
Chain
(Gansu)
Co.Ltd.LBX Hangzho RMB 30 Hangzho Pharmac 100%
Pharma u million u eutical
cy Retail
Chain
(Zhejian
g) Co.Ltd.Ningxia Yinchua RMB Yinchua Pharmac 100%
LBX n 23.80 n eutical
Huirent million Retail
ang
Pharma
ceutical
Co.Ltd.
302 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Hunan Huaihua RMB 20 Huaihua Pharmac 100%
LBX million eutical
Huairen Wholesal
Pharma e
ceutical
Co.Ltd.LBX Nanjing RMB 17 Nanjing Pharmac 100%
Pharma million eutical
cy Retail
(Jiangsu
) Co.Ltd.Beijing Beijing RMB 12 Beijing E- 100%
LBX E- million commerc
commer e
ce Co.Ltd.Shaanxi Weinan RMB Weinan Pharmac 100%
LBX 10.7694 eutical
Sanqin million Retail
Jishengt
ang
Pharma
ceutical
Chain
Co.Ltd.Wuhu Wuhu RMB 10 Wuhu Pharmac 100%
Yuanch million eutical
u Retail
Pharma
cy
Chain
Co.Ltd.Forworl Hangzho RMB 10 Hangzho Pharmac 100%
d u million u eutical
Medicin Wholesal
e e
Logistic
s
(Hangzh
ou) Co.Ltd.Hainan Hainan RMB 10 Hainan Pharmac 100%
LBX million eutical
Medical consultin
Health g
303 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Co.Ltd.Hunan Changsh RMB 10 Changsh Informati 100%
Baixin a million a on
Informa technolo
tion gy
Technol consultin
ogy Co. g
Ltd.Forworl Nanning RMB 10 Nanning Pharmac 100%
d million eutical
Medicin Wholesal
e e
(Guang
xi) Co.Ltd.Wuhu Wuhu RMB 10 Wuhu Pharmac 100%
LBX million eutical
Yijiaren Retail
Pharma
cy
Chain
Co.Ltd.Henan Zhengzh RMB 10 Zhengzh Pharmac 100%
Provinci ou million ou eutical
al Retail
Pharma
ceutical
Superm
arket
Co.Ltd.Forworl Zhengzh RMB 10 Zhengzh Pharmac 100%
d ou million ou eutical
Medicin Wholesal
e e
(Henan)
Co.Ltd.Hunan Huaihua RMB 10 Huaihua Retail of 100%
LBX million maternal
Huairen and
Materna infant
l and products
Infant
Life
Pavilion
304 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Co.Ltd.LBX Changde RMB 10 Changde Pharmac 100%
Pharma million eutical
cy Retail
Chain
(Changd
e) Co.Ltd.Zhejian Hangzho RMB 10 Hangzho Food and 100%
g LBX u million u departme
Food nt store
Co. retail
Ltd.Yinchua Yinchua RMB 10 Yinchua Informati 100%
n n million n on
Xinchen technolo
g gy
Internet consultin
Hospital g
Co.Ltd.LBX Shanghai RMB 10 Shanghai Pharmac 100%
Pharma million eutical
cy Retail
Chain
(Shangh
ai) Co.Ltd.Hunan Huaihua RMB 10 Huaihua Pharmac 100%
LBX million eutical
Huaixin Retail
ren
Pharma
cy
Chain
Co.Ltd.Forworl Hangzho RMB 10 Hangzho Technica 100%
d u million u l services
Biotech
nology
(Hangzh
ou) Co.Ltd.LBX Taizhou RMB 8 Taizhou Pharmac 100%
Pharma million eutical
cy Retail
Chain
305 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(Taizho
u) Co.Ltd.LBX Xi'an RMB 6 Xi'an Pharmac 100%
Pharma million eutical
cy Retail
Chain
(Shaanx
i) Co.Ltd.LBX Zhenjian RMB 5 Zhenjian Pharmac 100%
Pharma g million g eutical
cy Retail
Chain
(Zhenjia
ng) Co.Ltd.Jiangsu Suzhou RMB 5 Suzhou Pharmac 100%
Baijiahu million eutical
i Suhe Retail
Pharma
cy
Chain
Co.Ltd.LBX Yangzho RMB 5 Yangzho Pharmac 100%
Pharma u million u eutical
cy Retail
Chain
(Yangzh
ou) Co.Ltd.Anhui Hefei RMB 5 Hefei Pharmac 100%
Baixing million eutical
yuan Retail
Pharma
cy
Gaoxin
Co.Ltd.Lanzho Lanzhou RMB 5 Lanzhou Pharmac 100%
u million eutical
Huiren Retail
Changqi
ng
Pharma
ceutical
Co.Ltd.
306 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
LBX Nanning RMB 5 Nanning Pharmac 100%
Pharma million eutical
cy Retail
Chain
(Guang
xi) Co.Ltd.LBX Tianjin RMB 5 Tianjin Pharmac 100%
Pharma million eutical
cy Retail
Chain
(Tianjin
) Co.Ltd.Zhenjia Zhenjian RMB 5 Zhenjian Pharmac 100%
ng LBX g million g eutical
Kaitai Retail
Pharma
cy Co.Ltd.LBX Shanghai RMB 5 Shanghai Pharmac 100%
Health million eutical
Manage consultin
ment g
Consulti
ng
(Shangh
ai) Co.Ltd.LBX Zhengzh RMB 5 Zhengzh Pharmac 100%
Pharma ou million ou eutical
cy Retail
Chain
Henan
Co.Ltd.Xuanch Xuanche RMB 4.5 Xuanche Pharmac 100%
eng ng million ng eutical
LBX Retail
Pharma
cy
Chain
Co.Ltd.Yangzh Yangzho RMB Yangzho TCM 100%
ou u 4.28 u clinic
Baixingt million
ang
Guoyig
307 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
uan
Traditio
nal
Chinese
Medicin
e
Outpatie
nt
Depart
ment
Co.Ltd.LBX Jinan RMB 3 Jinan Pharmac 100%
Health million eutical
Pharma Retail
cy
(Shando
ng) Co.Ltd.Xi'an Xi'an RMB 3 Xi'an TCM 100%
Baixingt million clinic
ang
Zhang
Shiwu
Tang
Traditio
nal
Chinese
Medicin
e Clinic
Co.Ltd.Guangxi Nanning RMB 2 Nanning Pharmac 100%
LBX million eutical
Pharma Retail
cy
Health
Technol
ogy Co.Ltd.Hunan Changsh RMB 2 Changsh Business 100%
Linggan a million a services
Yaodian
Cultural
Creativi
ty Co.Ltd.LBX Pingxian RMB 2 Pingxian Pharmac 100%
Pharma g million g eutical
cy Retail
308 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(Jiangxi
) Co.Ltd.LBX Jinan RMB 2 Jinan Pharmac 100%
Pharma million eutical
cy Retail
Chain
(Shando
ng) Co.Ltd.Huaihua Huaihua RMB 2 Huaihua Clinic 100%
LBX million
Huairen
Medical
Enterpri
se
Manage
ment
Co.Ltd.Changz Changzh RMB 1 Changzh Pharmac 100%
hou ou million ou eutical
Wanren Retail
Pharma
cy Co.Ltd.Tianjin Tianjin RMB 1 Tianjin Pharmac 100%
LBX million eutical
Qiyuan Retail
Pharma
cy Co.Ltd.Tianjin Tianjin RMB 1 Tianjin Pharmac 100%
Hebei million eutical
District Retail
Baixingt
ang
Pharma
ceutical
Technol
ogy Co.Ltd.Tianjin Tianjin RMB 1 Tianjin Clinic 100%
Binhai million
Baixingt
ang
Clinic
Co.Ltd.
309 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Hefei Hefei RMB Hefei Clinic 100%
Shushan 600000
Baixing
yuan
Outpatie
nt
Depart
ment
Co.Ltd.Changs Changsh RMB Changsh Clinic 100%
ha Kaifu a 500000 a
District
Baiyi
Health
Compre
hensive
Outpatie
nt
Depart
ment
Co.Ltd.LBX Baiyin RMB Baiyin Pharmac 100%
Pharma 500000 eutical
cy Retail
Chain
(Baiyin)
Co.Ltd.LBX Zhangye RMB Zhangye Pharmac 100%
Pharma 500000 eutical
cy Retail
Chain
(Zhangy
e) Co.Ltd.LBX Hanzhon RMB Hanzhon Pharmac 100%
Pharma g 500000 g eutical
cy Retail
Chain
(Hanzho
ng) Co.Ltd.LBX Dingxi RMB Dingxi Pharmac 100%
Pharma 500000 eutical
cy Wholesal
Chain e
(Lintao)
310 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Co.Ltd.Qianxi Bijie RMB Bijie Pharmac 100%
LBX 500000 eutical
Pharma Retail
cy Co.Ltd.Xi'an Xi'an RMB Xi'an Clinic 100%
Baixin 500000
Health
Compre
hensive
Outpatie
nt
Depart
ment
Co.Ltd.Tianjin Tianjin RMB Tianjin Clinic 100%
Hedong 350000
District
LBX
Traditio
nal
Chinese
Medicin
e
Outpatie
nt
Depart
ment
Co.Ltd.Lanzho Lanzhou RMB Lanzhou Pharmac 100%
u 300000 eutical
Baixing Retail
Huirent
ang
Pharma
ceutical
Co.Ltd.Tianjin Tianjin RMB Tianjin Pharmac 100%
LBX 300000 eutical
Jinqilin Retail
Pharma
ceutical
Sales
Co.Ltd.
311 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Kunsha Suzhou RMB Suzhou Food and 100%
n Duhao 200000 departme
Conveni nt store
ence retail
Chain
Co.Ltd.Yangzh Zhenjian RMB Zhenjian Clinic 100%
ong g 100000 g
Baqiao
TCM
Compre
hensive
Clinic
Co.Ltd.Yangzh Zhenjian RMB Zhenjian Clinic 100%
ong g 100000 g
Xinba
LBX
TCM
Clinic
Co.Ltd.Yangzh Zhenjian RMB Zhenjian Clinic 100%
ong g 100000 g
LBX
TCM
Compre
hensive
Clinic
Co.Ltd.LBX Tianjin RMB Tianjin Clinic 100%
Compre 100000
hensive
Outpatie
nt
Depart
ment
(Tianjin
) Co.Ltd.Hangzh Hangzho RMB Hangzho Clinic 100%
ou u 100000 u
Zhongb
eiqiao
Clinic
Co.Ltd.
312 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
LBX Zhenjian RMB Zhenjian Pharmac 100%
Jianning g 100000 g eutical
Pharma Retail
ceutical
(Yangzh
ong)
Co.Ltd.Xi'an Xi'an RMB Xi'an Pharmac 100%
Changji 100000 eutical
a wholesal
Pharma e
ceutical
Co.Ltd.Tianjin Tianjin RMB Tianjin Clinic 100%
Hedong 100000
District
Ren'ai
Baixing
Compre
hensive
Outpatie
nt
Depart
ment
Co.Ltd.Wugong Xianyan RMB Xianyan Pharmac 100%
County g 100000 g eutical
Longshe Retail
ng
Pharma
ceutical
Co.Ltd.Kunsha Suzhou RMB Suzhou Pharmac 100%
n 100000 eutical
Baijiahu Retail
i Suhe
Ningkan
g
Pharma
cy Co.Ltd.LBX Hefei RMB Hefei Pharmac 100%
Pharma 100000 eutical
cy Retail
(Feixi)
313 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Co.Ltd.LBX Zhenjian RMB Zhenjian Pharmac 100%
Kangren g 100000 g eutical
Pharma Retail
ceutical
(Yangzh
ong)
Co.Ltd.Kunsha Suzhou RMB Suzhou Pharmac 100%
n 80000 eutical
Baijiahu Retail
i Suhe
Chunqiu
Pharma
cy Co.Ltd.Chenzh Chenzho RMB Chenzho Pharmac 100%
ou u 50000 u eutical
Forworl Retail
d
Pharma
cy Co.Ltd.Chenzh Chenzho RMB Chenzho Pharmac 100%
ou Linyi u 50000 u eutical
Chronic Retail
Disease
Professi
onal
Pharma
cy Co.Ltd.Tianjin Tianjin RMB Tianjin Pharmac 100%
LBX 10000 eutical
Tonghui Retail
Pharma
cy Co.Ltd.Wuhu Wuhu RMB 15 Wuhu Pharmac 85%
Baixing million eutical
yuan Retail
Pharma
cy
Chain
Co.Ltd.
314 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
LBX Changsh RMB 50 Changsh Pharmac 81%
Health a million a eutical
Pharma consultin
cy g
Group
Chain
Co.Ltd.LBX Nanjing RMB 10 Nanjing Pharmac 81%
Health million eutical
Pharma consultin
cy g
(Jiangsu
) Co.Ltd.LBX Hangzho RMB 10 Hangzho Pharmac 81%
Health u million u eutical
Pharma consultin
cy g
(Zhejian
g) Co.Ltd.Hunan Changsh RMB 5 Changsh Pharmac 81%
Longxin a million a eutical
g consultin
Tianxia g
Health
Manage
ment
Co.Ltd.Shangy Changsh RMB 5 Changsh Commod 81%
ouzhixu a million a ity
an wholesal
(Hunan) e
Comme
rcial
Co.Ltd.LBX Xi'an RMB 5 Xi'an Pharmac 81%
Health million eutical
Pharma consultin
cy g
(Shaanx
i) Co.Ltd.LBX Wuhan RMB 5 Wuhan Pharmac 81%
Health million eutical
Pharma
315 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
cy consultin
(Hubei) g
Co.Ltd.LBX Nanning RMB 5 Nanning Pharmac 81%
Health million eutical
Pharma consultin
cy g
Chain
(Guang
xi) Co.Ltd.LBX Hefei RMB 5 Hefei Pharmac 81%
Health million eutical
Pharma consultin
cy g
Manage
ment
(Anhui)
Co.Ltd.LBX Tianjin RMB 5 Tianjin Pharmac 81%
Health million eutical
Pharma consultin
cy g
(Tianjin
) Co.Ltd.LBX Zhengzh RMB 5 Zhengzh Pharmac 81%
Health ou million ou eutical
Pharma consultin
cy g
(Henan)
Co.Ltd.LBX Guangzh RMB 5 Guangzh Pharmac 81%
Health ou million ou eutical
Pharma consultin
cy g
(Guang
dong)
Co.Ltd.Lanzho Lanzhou RMB 3 Lanzhou Pharmac 81%
u million eutical
Huirent consultin
ang g
Health
Pharma
316 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
cy Co.Ltd.Loudi Loudi RMB 2 Loudi Pharmac 81%
Longxin million eutical
g consultin
Century g
Health
Manage
ment
Co.Ltd.Guangxi Hechi RMB 2 Hechi Business 81%
Longxin million services
g
Century
Health
Manage
ment
Co.Ltd.Guangxi Nanning RMB 2 Nanning Pharmac 81%
Longxin million eutical
g Qianyi consultin
Health g
Manage
ment
Co.Ltd.Shaanxi Xi'an RMB 2 Xi'an Pharmac 81%
Longxin million eutical
g consultin
Century g
Health
Manage
ment
Co.Ltd.Xiangta Xiangtan RMB 2 Xiangtan Pharmac 81%
n million eutical
Longxin consultin
g g
Century
Health
Manage
ment
Co.Ltd.Tianjin Hedong RMB 2 Hedong Pharmac 81%
Longxin million eutical
317 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
g consultin
Century g
Health
Manage
ment
Co.Ltd.Hunan Changsh RMB 2 Changsh Pharmac 81%
Longxin a million a eutical
g consultin
Century g
Health
Manage
ment
Co.Ltd.Hunan Changsh RMB 2 Changsh Pharmac 81%
Longxin a million a eutical
g Qianyi consultin
Health g
Manage
ment
Co.Ltd.Shaoyan Shaoyan RMB 2 Shaoyan Pharmac 81%
g g million g eutical
Longxin consultin
g g
Century
Health
Manage
ment
Co.Ltd.Changd Changde RMB 2 Changde Pharmac 81%
e million eutical
Longxin consultin
g g
Century
Health
Manage
ment
Co.Ltd.Hefei Hefei RMB 1 Hefei Pharmac 81%
Longxin million eutical
g consultin
Century g
Health
Manage
318 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
ment
Consulti
ng Co.Ltd.Lanzho Lanzhou RMB 1 Lanzhou Pharmac 81%
u million eutical
Longxin consultin
g g
Century
Health
Manage
ment
Co.Ltd.Hubei Wuhan RMB 1 Wuhan Pharmac 81%
Longxin million eutical
g consultin
Century g
Health
Manage
ment
Co.Ltd.Lanzho Lanzhou RMB 1 Lanzhou Pharmac 81%
u million eutical
Longxin consultin
g Qianyi g
Health
Manage
ment
Co.Ltd.Changs Changsh RMB Changsh Pharmac 81%
ha a 500000 a eutical
High- consultin
tech g
Industri
al
Develop
ment
Zone
Longxin
g Qianyi
Technol
ogy Co.Ltd.Hangzh Hangzho RMB Hangzho Pharmac 81%
ou u 500000 u eutical
Longxin consultin
g g
319 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Century
Health
Manage
ment
Co.Ltd.Hangzh Hangzho RMB Hangzho Pharmac 81%
ou u 500000 u eutical
Longxin consultin
g Qianyi g
Health
Manage
ment
Co.Ltd.Hengya Hengyan RMB Hengyan Pharmac 81%
ng g 500000 g eutical
Longxin consultin
g g
Century
Health
Manage
ment
Co.Ltd.Nanjing Nanjing RMB Nanjing Pharmac 81%
Longxin 500000 eutical
g consultin
Century g
Health
Manage
ment
Co.Ltd.Anqing Anqing RMB Anqing Pharmac 80%
LBX 18.60 eutical
Pharma million Retail
cy
Chain
Co.Ltd.LBX Guiyang RMB 5 Guiyang Pharmac 73%
Health million eutical
Pharma consultin
cy g
Chain
(Guizho
u) Co.Ltd.
320 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Guizhou Guiyang RMB Guiyang Pharmac 73%
Longxin 500000 eutical
g consultin
Century g
Health
Manage
ment
Co.Ltd.LBX Hengyan RMB 26 Hengyan Pharmac 66%
Pharma g million g eutical
cy Retail
Chain
(Hengya
ng) Co.Ltd.Wuxi Wuxi RMB 7.2 Wuxi Pharmac 65%
Sanpint million eutical
an Retail
Pharma
ceutical
Chain
Co.Ltd.Changz Changzh RMB Changzh Pharmac 65%
hou ou 3.24 ou eutical
Jintan million Retail
Xinqian
qiu
Pharma
cy Co.Ltd.LBX Wuxi RMB Wuxi Pharmac 65%
Pharma 500000 eutical
cy Retail
(Yixing)
Co.Ltd.Yixing Wuxi RMB Wuxi Clinic 65%
Sanpint 300000
an
Traditio
nal
Chinese
Medicin
e Clinic
Co.Ltd.
321 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
LBX Hohhot RMB 10 Hohhot Pharmac 59%
Health million eutical
Pharma consultin
cy g
(Inner
Mongoli
a) Co.Ltd.Hunan Changsh RMB 10 Changsh Medical 58%
Baixingt a million a services
ang
Famous
Doctors'
Clinic
Traditio
nal
Chinese
Medicin
e
Manage
ment
Co.Ltd.Chengd Chengdu RMB 10 Chengdu TCM 58%
u million clinic
Baixingt
ang
Hospital
Manage
ment
Co.Ltd.Hunan Changsh RMB 8 Changsh TCM 58%
Baixingt a million a clinic
ang
Famous
Doctors'
Clinic
Traditio
nal
Chinese
Medicin
e
Outpatie
nt
Depart
ment
Co.Ltd.
322 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Hunan Changsh RMB 2 Changsh Business 58%
Baixingt a million a services
ang
Health
Manage
ment
Co.Ltd.Changz Changzh RMB 2 Changzh TCM 58%
hou ou million ou clinic
Baixingt
ang
Heping
Traditio
nal
Chinese
Medicin
e
Outpatie
nt
Depart
ment
Co.Ltd.Changz Changzh RMB 2 Changzh TCM 58%
hou ou million ou clinic
Baixingt
ang
Renmin
Traditio
nal
Chinese
Medicin
e
Outpatie
nt
Depart
ment
Co.Ltd.Laobaix Luoyang RMB 2 Luoyang Pharmac 57%
ing million eutical
Baixin consultin
(Luoyan g
g)
Health
Manage
ment
Consulti
323 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
ng Co.Ltd.Jiangsu Wuxi RMB 8.3 Wuxi Pharmac 55%
Haipeng million eutical
Pharma Retail
ceutical
Chain
Co.Ltd.Inner Tongliao RMB 51 Tongliao Pharmac 51%
Mongoli million eutical
a Wholesal
Zeqiang e
Pharma
ceutical
Co.Ltd.Tonglia Tongliao RMB 50 Tongliao Pharmac 51%
o million eutical
Zeqiang Retail
Pharma
cy
Chain
Co.Ltd.Hunan Changsh RMB 30 Changsh Pharmac 51%
Mingyu a million a eutical
Longxin wholesal
g e
Pharma
ceutical
Sales
Co.Ltd.Nantong Nantong RMB Nantong Pharmac 51%
Puze 27.60 eutical
Pharma million Retail
cy
Chain
Co.Ltd.Linyi Linyi RMB Linyi Pharmac 51%
Rende 14.74 eutical
Pharma million Retail
cy
Chain
Co.Ltd.
324 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
LBX Tianjin RMB 14 Tianjin Pharmac 51%
Pharma million eutical
cy Retail
(Tianjin
Binhai
New
Area)
Co.Ltd.Shanxi Yunchen RMB Yunchen Pharmac 51%
Baihui g 10.0728 g eutical
Pharma million Retail
ceutical
Chain
Co.Ltd.Shanxi Yunchen RMB 10 Yunchen Pharmac 51%
Baihui g million g eutical
Pharma wholesal
ceutical e
Co.Ltd.Jilin Baicheng RMB 10 Baichen Pharmac 51%
LBX million g eutical
Tongtai Retail
Pharma
cy
Chain
Co.Ltd.Inner Hohhot RMB 10 Hohhot Pharmac 51%
Mongoli million eutical
a Wholesal
Zeqiang e
Pharma
cy
Chain
Co.Ltd.Anhui Hefei RMB Hefei Pharmac 51%
Linjiayi 5.38 eutical
Kangfu million Retail
Pharma
cy
Chain
Co.Ltd.Hunan Changsh RMB 5 Changsh Pharmac 51%
LBX a million a eutical
325 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Easy promotio
Drug n
Technol
ogy Co.Ltd.Baichen Baicheng RMB 1 Baichen Pharmac 51%
g Mintai million g eutical
Medical Wholesal
Device e
Co.Ltd.Tonglia Tongliao RMB 1 Tongliao Retail of 51%
o million maternal
Zeqiang and
Binhe infant
Leyou products
Materna
l and
Infant
Product
s Co.Ltd.Tonglia Tongliao RMB 1 Tongliao Retail of 51%
o million maternal
Zeqiang and
Leyou infant
Materna products
l and
Infant
Product
s Co.Ltd.Tonglia Tongliao RMB 1 Tongliao Food and 51%
o million departme
Zeqiang nt store
Meilejia retail
Superm
arket
Co.Ltd.Nantong Nantong RMB Nantong Clinic 51%
Renyua 500000
n Clinic
Co.Ltd.Yunche Yunchen RMB Yunchen Pharmac 51%
ng g 100000 g eutical
Econom Retail
ic and
326 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Technol
ogical
Develop
ment
Zone
Baihui
Pharma
ceutical
Kongga
ngyi
Pharma
cy Co.Ltd.Yunche Yunchen RMB Yunchen Pharmac 51%
ng g 100000 g eutical
Yanhu Retail
District
Baihui
Zhonglo
u
Pharma
ceutical
Co.Ltd.Jishan Yunchen RMB Yunchen Pharmac 51%
County g 100000 g eutical
Baihui Retail
Pharma
ceutical
Jifengdo
ng
Street
Pharma
cy Co.Ltd.Xinjian Yunchen RMB Yunchen Pharmac 51%
County g 100000 g eutical
Baihui Retail
Pharma
ceutical
Co.Ltd.Hai'an Nantong RMB Nantong Clinic 51%
Tiansho 100000
utang
Traditio
nal
Chinese
Medicin
e Clinic
327 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Co.Ltd.Jishan Yunchen RMB Yunchen Pharmac 51%
County g 100000 g eutical
Baihui Retail
Pharma
ceutical
Kangfu
Road
Pharma
cy Co.Ltd.Yunche Yunchen RMB Yunchen Pharmac 51%
ng g 100000 g eutical
Econom Retail
ic and
Technol
ogical
Develop
ment
Zone
Baihui
Pharma
ceutical
Huangji
nshuian
Pharma
cy Co.Ltd.Yunche Yunchen RMB Yunchen Pharmac 51%
ng g 100000 g eutical
Yanhu Retail
District
Baihui
Zhongyi
n
Pharma
ceutical
Co.Ltd.Yunche Yunchen RMB Yunchen Pharmac 51%
ng g 100000 g eutical
Econom Retail
ic and
Technol
ogical
Develop
ment
Zone
Baihui
328 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Pharma
ceutical
Yuduyi
Pharma
cy Co.Ltd.Ruichen Yunchen RMB Yunchen Pharmac 51%
g g 100000 g eutical
County Retail
Baihui
Pharma
ceutical
Co.Ltd.Yunche Yunchen RMB Yunchen Pharmac 51%
ng g 100000 g eutical
Yanhu Retail
District
Baihui
Nanhua
n
Pharma
ceutical
Co.Ltd.Yunche Yunchen RMB Yunchen Pharmac 51%
ng g 100000 g eutical
Yanhu Retail
District
Baihui
Laodon
g
Pharma
ceutical
Co.Ltd.Yunche Yunchen RMB Yunchen Pharmac 51%
ng g 100000 g eutical
Yanhu Retail
District
Baihui
Shengh
uinan
Pharma
ceutical
Co.Ltd.Shando Linyi RMB Linyi Pharmac 45%
ng LBX 18.68 eutical
Chuntia million Retail
329 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
n
Pharma
cy
Chain
Co.Ltd.Liaonin Shenyan RMB 3 Shenyan Pharmac 44%
g Easy g million g eutical
Drug promotio
Technol n
ogy Co.Ltd.LBX Taiyuan RMB 20 Taiyuan Pharmac 41%
Health million eutical
Pharma consultin
cy g
Chain
(Shanxi)
Co.Ltd.LBX Yinchua RMB 10 Yinchua Pharmac 41%
Health n million n eutical
Pharma Retail
cy
Chain
(Ningxi
a) Co.Ltd.LBX Yichun RMB 5 Yichun Pharmac 41%
Health million eutical
Pharma Retail
cy
(Jiangxi
) Chain
Co.Ltd.Nantong Nantong RMB 5 Nantong Pharmac 41%
Puze million eutical
Chengxi Retail
n Chain
Pharma
cy Co.Ltd.Hebei Shijiazhu RMB 3 Shijiazh Pharmac 34%
Easy ang million uang eutical
Drug promotio
Enterpri n
se
Manage
330 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
ment
Consulti
ng Co.Ltd.Henan Zhengzh RMB 2 Zhengzh Pharmac 34%
Easy ou million ou eutical
Drug promotio
Pharma n
ceutical
Technol
ogy Co.Ltd.Chongqi Chongqi RMB 2 Chongqi Pharmac 34%
ng Easy ng million ng eutical
Drug promotio
Technol n
ogy Co.Ltd.Shaanxi Xi'an RMB 2 Xi'an Pharmac 34%
Easy million eutical
Drug promotio
Technol n
ogy Co.Ltd.Hubei Wuhan RMB 2 Wuhan Pharmac 34%
Easy million eutical
Drug promotio
Yixin n
Technol
ogy Co.Ltd.Hejin Yunchen RMB Yunchen Pharmac 34%
Renguo g 2.20 g eutical
Baihui million Retail
Pharma
ceutical
Co.Ltd.Jilin Changch RMB 2 Changch Pharmac 26%
Easy un million un eutical
Drug promotio
Technol n
ogy Co.Ltd.Yuanqu Yunchen RMB Yunchen Pharmac 26%
County g 1.51 g eutical
Baihui million Retail
Pharma
ceutical
331 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Co.Ltd.LBX Hong HKD Hong Pharmac 100%
Pharma Kong 10000 Kong eutical
cy (HK) China China Retail
Compan
y
Limited
Hong Hong HKD Hong Pharmac 100%
Kong Kong 10000 Kong eutical
Health China China Retail
Pharma - -
ceutical
Co.Limited
Changs Changsh RMB Changsh Clinic 100%
ha Kaifu a 500000 a
District
Baixin
Health
Compre
hensive
Outpatie
nt
Depart
ment
Co.Ltd.Linxia Linxia RMB Linxia Pharmac 100%
Huirent 500000 eutical
ang Retail
Chain
Pharma
ceutical
Co.Ltd.Suzhou Suzhou RMB Suzhou Pharmac 100%
Baijiahu 30000 eutical
i Suhe Retail
Rongsh
outang
Pharma
cy Co.Ltd.Kunsha Suzhou RMB Suzhou Pharmac 51%
n Baijia 1.08 eutical
Huisuhe million Retail
Baijiaka
ng
332 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Pharma
cy Co.Ltd.Kunsha Suzhou RMB Suzhou Pharmac 51%
n 200000 eutical
Baijiahu Retail
i Suhe
Yangch
eng
Pharma
cy Co.Ltd.Changs Changsh RMB Changsh Pharmac 51%
ha Easy a 100000 a eutical
Drug promotio
Technol n
ogy Co.Ltd.Kunsha Suzhou RMB Suzhou Pharmac 51%
n 100000 eutical
Baijiahu Retail
i Suhe
Hongxi
n
Pharma
cy Co.Ltd.Kunsha Suzhou RMB Suzhou Pharmac 51%
n 100000 eutical
Baijiahu Retail
i Suhe
Yongan
Pharma
cy Co.Ltd.Kunsha Suzhou RMB Suzhou Pharmac 51%
n 50000 eutical
Baijiahu Retail
i Suhe
Dianhu
Pharma
cy Co.Ltd.Hangzh Hangzho RMB 2 Hangzho Pharmac 67%
ou Easy u million u eutical
Drug promotio
Pharma n
ceutical
Technol
333 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
ogy Co.Ltd.Guangz Guangzh RMB 2 Guangzh Pharmac 67%
hou ou million ou eutical
Easy promotio
Drug n
Technol
ogy Co.Ltd.Explanation of the difference between the shareholding ratio and voting rights ratio in
subsidiaries:
None
Basis for controlling investees with half or less voting rights or not controlling investees
with more than half voting rights:
None
Basis for control of important structured entities included in the scope of consolidation:
None
Basis for determining whether the Company is an agent or principal:
None
Other explanations:
19% shares of Shandong LBX Chuntian Pharmacy Chain Co. Ltd. were directly held by
the Company and 51% of its shares were indirectly held through subsidiaries.The shareholding ratios of Hangzhou Easy Drug Pharmaceutical Technology Co. Ltd. and
Guangzhou Easy Drug Pharmaceutical Technology Co. Ltd. were those held through the
subsidiaries.
(2). Significant non-wholly-owned subsidiaries
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Dividends
Profit or loss declared and Balance of
Minority
attributable to distributed to minority
Subsidiary interest
minority interests minority interest at the
Name shareholding
during the current shareholders end of the
Ratio
period during the current period
period
Tongliao 49% 42225236 47682600 117636546
Zeqiang
Explanation on difference between shareholding ratio and voting rights of the minority
shareholders in subsidiaries:
□Applicable √Not Applicable
Other explanations:
334 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
□Applicable √Not Applicable
(3). Main financial information of significant non-wholly-owned subsidiaries
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance Opening balance
Subs
Non- Non-
idiar Curr Non- Tota Curr Tota Curr Non- Tota Curr Tota
curren curren
y ent curren l ent l ent curren l ent l
t t
Nam asset t asset liabi liabi asset t asset liabi liabi
liabili liabili
e s assets s lities lities s assets s lities lities
ties ties
Ton 487 106 593 339 132 353 441 134 575 290 334 323
gliao 636 032 669 936 164 153 178 283 461 358 490 807
Zeqi 733 692 425 976 55 431 219 045 264 700 67 767
ang
Amount incurred during the current Amount incurred in the previous
period period
Cash Cash
flow flow
Subsidiary Operat Total Operat Total
from from
Name ing Net compre ing Net compre
operatin operatin
incom profit hensive incom profit hensive
g g
e income e income
activitie activitie
s s
Tongliao 1234 8617 86173 122233 1189 8213 82131 191855
Zeqiang 87163 3950 950 643 58340 1957 957 586
87
Other explanations:
None
(4). Significant restrictions on the use of the group's assets and the settlement of the group's debts
□Applicable √Not Applicable
(5). Financial support or other support provided to structured entities included in the scope of
consolidated financial statements
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
2. Transactions involving changes in the ownership interest share in subsidiaries while still
retaining control
√Applicable □Not Applicable
335 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(1). Explanation of changes in the ownership interest share in subsidiaries
√Applicable □Not Applicable
In January 2025 the investment in LBX Huairen (accounting for 20% of LBX Huairen)
was acquired. The closing date was June 2025 and the consideration paid for the
acquisition of equity was RMB 385000000. This transaction resulted in a decrease in
minority interests in the consolidated financial statements by RMB 112854263 and a
decrease in capital reserves by RMB 272145737. As of December 31 2025 the
outstanding equity acquisition payment of the Company amounted to RMB 19250000.In February 2025 the partial investment in Liaoning Easy Drug Technology Co. Ltd.(accounting for 20% of Liaoning Easy Drug Technology Co. Ltd.) was acquired. The
consideration paid for the acquisition of equity was RMB 300000. This transaction
resulted in a decrease in minority interests in the consolidated financial statements by RMB
632723 and an increase in capital reserves by RMB 332723.
(2). Impact of the transaction on minority interests and equity attributable to owners
of the parent company
□Applicable √Not Applicable
3. Equity in joint ventures or associates
√Applicable □Not Applicable
(1). Significant joint ventures or associates
□Applicable √Not Applicable
(2). Main financial information of significant joint ventures
□Applicable √Not Applicable
(3). Main financial information of significant associates
□Applicable √Not Applicable
(4). Aggregated financial information of insignificant joint ventures and associates
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance / amount
Opening balance/amount of
incurred during the current
this period
period
336 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Joint ventures:
Total book value of
investments
Total calculated based on shareholding ratio for the following items
-- Net profit
-- Other comprehensive
income
-- Total comprehensive
income
Associates:
Total book value of
8128327085352717
investments
Total calculated based on shareholding ratio for the following items
-- Net profit -4069447 2831526
-- Other comprehensive
income
-- Total comprehensive -4069447 2831526
income
Other explanations:
None
(5). Explanation of significant restrictions on the ability of joint ventures or associates to transfer
funds to the Company
□Applicable √Not Applicable
(6). Excess losses incurred by joint ventures or associates
□Applicable √Not Applicable
(7). Unrecognized commitments related to investments in joint ventures
□Applicable √Not Applicable
(8). Contingent liabilities related to investments in joint ventures or associates
□Applicable √Not Applicable
4. Significant joint operations
□Applicable √Not Applicable
5. Equity in the structured entities not included in the scope of the consolidated financial
statements
Related information of structured entities not included in the consolidated financial
statements:
□Applicable √Not Applicable
337 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
6. Others
□Applicable √Not Applicable
XI. Government grants
1、 Government grants recognized by receivable amount at the end of the reporting period
□Applicable √Not Applicable
Reasons for not receiving the expected amount of government grants at the expected time
□Applicable √Not Applicable
2、 Liability items involving government grants
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount
Transferr
Amount included
ed to Other
of new in non-
other changes
Financial subsidies operating Asset/inc
Opening income during Closing
statemen during income ome-
balance during the balance
t item the during related
the current
current the
current period
period current
period
period
Deferred 129255 236930 105562 Related
income 75 1 74 to assets
129255236930105562
Total /
75174
3、 Government grants included in current profit or loss
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during the Amount incurred in the
Type
current period previous period
Related to assets 2369301 3217348
Related to income 75161086 74468255
Total 77530387 77685603
Other explanations:
None
XII. Risks related to financial instruments
1、 Risks of financial instruments
√Applicable □Not Applicable
The Group faces various financial instrument risks in its daily activities mainly including
credit risk liquidity risk and market risk. The Group's risk management policy regarding
this is outlined as follows.
338 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(1) Credit risk
The Group only deals with the third parties that are recognized with good reputation.According to the Group's policy credit checks are required for all customers requesting
credit terms. In addition the Group continuously monitors accounts receivable balances to
ensure that the Group does not face significant bad debt risk. For transactions not settled in
the functional currency of the relevant operating unit the Group does not offer credit terms
unless specifically approved by the Group's credit control department.Since the counterparties for cash and cash equivalents notes receivable and receivables
financing are reputable banks with high credit ratings the credit risk of these financial
instruments is low.The Group's other financial assets include accounts receivable long-term receivables and
other receivables. The credit risk of these financial assets arises from counterparty default
and the maximum risk exposure equals the book value of these instruments. Cash and cash
equivalents debt investments and long-term receivables are all in Stage 1 with bad debt
provisions made based on 12-month ECL. The amount of bad debt provisions is not
significant.Since the Group only trades with recognized and reputable third parties no collateral is
required. Credit risk concentration is managed by customer/counterparty geographical
region and industry. As the Company's accounts receivable risk points are distributed
among multiple partners and customers as of December 31 2025 22% (December 31
2024: 23%) of the Company's accounts receivable originated from the top five customers
by balance. Therefore there is no significant concentration of credit risk within the Group.The Group holds no collateral or other credit enhancements for accounts receivable and
receivables financing balances. The maximum credit risk exposure borne by the Group is
the book value of each financial asset in the balance sheet.Criteria for judging significant increase in credit risk
The Group assesses at each balance sheet date whether the credit risk of the relevant
financial instruments has significantly increased since their initial recognition. The main
criteria used by the Group to judge a significant increase in credit risk are overdue days
exceeding 30 days or significant changes in one or more of the following indicators: the
operating environment in which the debtor operates internal and external credit ratings
significant adverse changes in actual or expected operating results etc.Definition of credit-impaired assets
The main criterion used by the Group to judge credit impairment is overdue days exceeding
90 days. However in some cases if internal or external information indicates that the
contractual amount may not be fully recovered before considering any credit enhancements
held the Group also considers it credit-impaired.Credit impairment of financial assets may result from the combined effect of multiple
events not necessarily caused by a single identifiable event.
339 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Credit risk exposure
For accounts receivable and other receivables for which impairment provisions are made
based on lifetime ECL the risk matrix is detailed in the disclosures in Note V. 11.
2025 Book balance (unsecured) Book balance (secured)
ECL for the ECL in the ECL for the ECL in the
next 12 months whole duration next 12 months whole duration
Cash and bank
2355319285
balances
Notes
58134440
receivable
Accounts
2107724650
receivable
Accounts
receivable 5612871
financing
Other
23536568517486944
receivables
Non-current
assets due 41225587
within one year
Debt
investments
Long-term
66161336
receivables
Total 2761819204 2125211594
2024 Book balance (unsecured) Book balance (secured)
ECL for the ECL in the ECL for the ECL in the
next 12 months whole duration next 12 months whole duration
Cash and bank
2379865319
balances
Notes
76074821
receivable
Accounts
2309123229
receivable
Accounts
receivable 15269288
financing
Other
27014027911633787
receivables
Non-current
assets due 37528487
within one year
Debt
investments
Long-term 79389411
340 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
receivables
Total 2858267605 2320757016
(2) Liquidity risk
The Group's objective is to maintain a balance between continuity of funding and flexibility
through the use of various financing means. The Group finances its operations through
funds generated from operations and borrowings. Except for the non-current portion of
long-term borrowings and lease liabilities all borrowings mature within one year.The following table summarizes the maturity analysis of financial liabilities based on
undiscounted contractual cash flows:
2025 Within 1 year 1-5 years Over 5 years Total
Short-term
699350208699350208
loans
Notes payable 5008269907 5008269907
Accounts
17469976151746997615
payable
Other payables 626911001 626911001
Non-current
liabilities due 1246526602 1246526602
within one year
Long-term
14959202491495920249
loans
Lease liabilities 1241531031 14723466 1256254497
Total 9328055333 2737451280 14723466 12080230079
2024 Within 1 year 1-5 years Over 5 years Total
Short-term
16598063581659806358
loans
Notes payable 4546258111 4546258111
Accounts
20089645932008964593
payable
Other payables 653535414 653535414
Non-current
liabilities due 1204356466 1204356466
within one year
Long-term
15756294941575629494
loans
Lease liabilities 1633031096 35059937 1668091033
Total 10072920942 3208660590 35059937 13316641469
(3) Market risk
Interest rate risk
341 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
The Group's exposure to the risk of changes in market interest rates relates primarily to the
Group's long-term liabilities with floating interest rates. The Group manages interest rate
risk by closely monitoring changes in interest rates and periodically reviewing borrowings.The following table illustrates the sensitivity analysis of interest rate risk reflecting the
impact on net profit or loss (through the effect on floating rate borrowings) and the net
amount of other comprehensive income after tax assuming a reasonable possible change
in interest rates holding all other variables constant.
202 Interest rate Net profit/loss Net amount of Total
5 other shareholder's
comprehensive equity
income after tax
Increase/(decrea Increase/(decrea Increase/(decrea Increase/(decrea
se) se) se) se)
RM
1%-18614928-18614928
B
RM
-1%1861492818614928
B
202 Interest rate Net profit/loss Net amount of Total
4 other shareholder's
comprehensive equity
income after tax
Increase/(decrea Increase/(decrea Increase/(decrea Increase/(decrea
se) se) se) se)
RM
1%-24578027-24578027
B
RM
-1%2457802724578027
B
The exchange rate risk imposes no significant impact.Equity instrument investment risk
Equity instrument investment price risk is the risk that the fair value of equity securities
decreases as a result of changes in the level of stock indices and the value of individual
securities. As of December 31 2025 the Group was exposed to equity instrument
investment price risk arising from individual equity investments classified as equity
investments measured at FVTPL and equity investments measured at FVOCI. The Group
manages risk by holding a portfolio of investments with different risks.The following table illustrates the sensitivity of the Group's net profit or loss and net
amount of other comprehensive income after tax to each 5% change in the fair value of
equity investments (based on the book value at the balance sheet date) assuming all other
variables remain constant.
2025 Equity Net profit/loss Other Shareholder equity
instrument comprehensive
investment income
342 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Increase/(decrease Net amount after Total
) tax
Book Increase/(decrease Increase/(decrease
value ) )
Equity
instrument
investment
Shenzhen -
Equity
instrument
investments
measured at
FVOCI
Investment
s in unlisted
equity
instruments
measured at
fair value
- Equity 6963496 253538/(253538) 253538/(253538)
investments
measured at
FVTPL
- Equity 3576812 1341403.61 1341403.61
instrument 3 /(1341304.61) /(1341304.61)
investments
measured at
FVOCI
2024 Equity Net profit/loss Other Shareholder equity
instrument comprehensive
investment income
Increase/(decrease Net amount after Total
) tax
Book Increase/(decrease Increase/(decrease
value ) )
Equity
instrument
investment
Shenzhen -
Equity
instrument
investments
measured at
FVOCI
Investment
s in unlisted
equity
instruments
343 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
measured at
fair value
- Equity
investments
measured at - 453493/(453493) - 453493/(453493)
FVTPL
- Equity
instrument
13454151345415
investments 3587772
-/(1345415)/(1345415)
measured at 3
FVOCI
2. Capital management
20252024
Total assets 19845403504 21044853679
Total liabilities 12849311008 13888903390
Asset-liability ratio 65% 66%
2、 Hedging
(1). The Company conducts hedging transactions for risk management.
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
(2). The Company conducts qualifying hedging activities and applies hedge accounting
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
(3). The Company conducts hedging activities for risk management expected to achieve risk
management objectives but does not apply hedge accounting
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
3、 Transfer of financial assets
(1). Classification by transfer method
√Applicable □Not Applicable
344 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Unit: RMB Currency: RMB
Nature of Amount of Judgment basis
Transfer
transferred transferred Derecognition for
method
financial asset financial asset derecognition
Notes Notes receivable 57042154 Not Retained
endorsement derecognized substantially all
risks and
rewards
including
related default
risk
Notes Accounts 340693018 Derecognized Transferred
endorsement receivable substantially all
financing risks and
rewards
Total / 397735172 / /
(2). Financial assets derecognized due to transfer
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount of Gains or losses
Method of financial
Item derecognized related to
asset transfer
financial asset derecognition
Accounts receivable Notes endorsement 340693018
financing
Total / 340693018
(3). Transferred financial assets with continuing involvement
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount of asset Amount of liability
Asset transfer formed from formed from
Item
method continuing continuing
involvement involvement
Notes receivable Notes endorsement 57042154 57042154
Total / 57042154 57042154
Other explanations:
√Applicable □Not Applicable
None
XIII. Disclosure of fair value
1、 Closing fair value of assets and liabilities measured at fair value
√Applicable □Not Applicable
Unit: RMB Currency: RMB
345 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Closing fair value
Level 1 fair Level 2 fair Level 3 fair
Item
value value value Total
measurement measurement measurement
I. Continuous fair
value measurement
(I) Trading financial
assets
1. Financial assets at
FVTPL
(1) Debt instrument
investments
(2) Equity instrument
investments
(3) Derivative
financial assets
2. Financial assets at
FVTPL
(1) Debt instrument
investments
(2) Equity instrument
investments
(II) Other debt
investments
(III) Other equity
instrument 35768123 35768123
investments
(IV) Investment
properties
1. Land use rights held
for rental
2. Buildings held for
rental
3. Land use rights held
for capital
appreciation
(V) Biological assets
1. Consumable
biological assets
2. Productive
biological assets
(VI) Receivables
56128715612871
financing
(VII) Other non-
69634966963496
current financial assets
Total assets
constantly measured 5612871 42731619 48344490
at fair value
346 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(VI) Trading financial
liabilities
1. Financial liabilities
at FVTPL
Of which: Issued
trading bonds
Derivative
financial liabilities
Others
2. Financial liabilities
designated as
measured at FVTPL
(IX) Other payables
Total liabilities
constantly measured
at fair value
II. Non-recurring
fair value
measurements
Total amount of non-
continuing assets
measured at fair
value
Total amount of non-
continuing liabilities
measured at fair
value
Input values used in fair value measurement
Important & Important & Total
Active market observable unobservable
quotes input input
(Level 1) (Level 2) (Level 3)
Accounts
receivable 15269288 15269288
financing
Other non-
current 12093150 12093150
financial assets
Other equity
instrument 35877723 35877723
investments
Total 15269288 47970873 63240161
347 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
2、 Basis for determining market prices of Level 1 fair value measurements (recurring and non-
recurring)
√Applicable □Not Applicable
Listed equity investments fair value determined by market quotation.
3、 Qualitative and quantitative information on valuation techniques and significant parameters
used for Level II fair value measurement items both recurring and non-recurring
√Applicable □Not Applicable
Bank acceptance bills in receivables financing fair value approximates book value due to
short remaining term.
4、 Qualitative and quantitative information on the valuation techniques and important
parameters adopted for continuous and non-continuous Level III fair value measurement items
√Applicable □Not Applicable
The following is an overview of significant unobservable inputs for Level 3 fair value
measurement:
Ending fair Valuation Unobservable Range interval
value technique input
(Weighted
average value)
Other non-
current
financial assets 6963496
Other equity Market Liquidity
instrument approach discount
investments 35768123 2025: 25%
Price-to-sales
ratio 2025: 3.99
5、 Reconciliation information between the opening and closing book balances of Level 3 fair value
measurement items and sensitivity analysis of unobservable parameters
√Applicable □Not Applicable
2025 Beginning Transferre Total gain or loss during the Newly Ending
balance d out period added balance
Level 3 Recognize Recognized Level 3
d in profit in other
or loss comprehensiv
e income
Trading
financial
assets
Other non- 1209315 -5774109 455891 64445 6963496
348 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
current 0 5
financial
assets
Other 3587772 -109600 3576812
equity 3 3
instrument
investment
s
Total 4797087 -5883709 455891 64445 4273161
359
2024 Beginnin Transferre Total gain or loss during Newly Ending
g balance d out the period added balance
Level 3 Recognize Recognized Level 3
d in profit in other
or loss comprehensi
ve income
Trading 1500000 1500000
financial
assets
Other non- 5774109 631904 1209315
current 1 0
financial
assets
Other 3717772 1300000 3587772
equity 3 3
instrument
investmen
ts
Total 4445183 2800000 631904 4797087
213
6、 For continuous fair value measurement items with transfers between levels during the current
period the reasons for the transfer and the policy for determining the transfer time
□Applicable √Not Applicable
7、 Changes in valuation techniques and reasons for changes during the current period
□Applicable √Not Applicable
8、 Fair value situation of financial assets and financial liabilities not measured at fair value
□Applicable √Not Applicable
9、 Others
□Applicable √Not Applicable
349 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
XIV. Related parties and related-party transactions
1. Information about the parent company of the enterprise
√Applicable □Not Applicable
Unit: RMB'0000 Currency: RMB
Shareholding
Voting ratio of
Parent Place of ratio of parent
Business Registered parent company
company registratio company in
nature capital in the Company
name n the Company
(%)
(%)
Pharmaceut Hunan Investment RMB 23.78% 25.57%
ical Group China management 104.2626
million
Explanation of the parent company situation
None
The ultimate controlling parties of the enterprise are Xie Zilong and Chen Xiulan
Other explanations:
The Company's largest shareholder is Pharmaceutical Group and the actual controllers are
Xie Zilong and Chen Xiulan. Chen Xiulan personally holds a direct equity ratio and voting
rights ratio of 1.79% in the Company. Therefore Pharmaceutical Group and Chen Xiulan
jointly hold a total equity ratio and voting rights ratio of 25.57% in the Company.
2. Subsidiaries of the Company
For details of the Company's subsidiaries refer to the notes.√Applicable □Not Applicable
Subsidiaries details can be found in Note X (1).
3. Joint ventures and associates of the Company
For details of the Company's significant joint ventures or associates refer to the notes.□Applicable √Not Applicable
Other joint ventures or associates that had related party transactions with the Company
during the current period or had balances arising from prior period related party
transactions with the Company are as follows:
√Applicable □Not Applicable
Name of joint venture or associate Relationship with the Company
Hunan Pharmaceutical Group Co. Ltd. The Company's associate
Beijing Tong Ren Tang Hunan
The Company's associate
Pharmaceutical Co. Ltd.Other explanations:
□Applicable √Not Applicable
4. Information about other related parties
√Applicable □Not Applicable
Relationship between related party and the
Name of other related party
Company
350 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Hunan Mingyuan Bee Industry Co.Controlled by the Company's Chairman
Ltd.Women & Children's Hospital of
Controlled by the Company's Chairman
Hunan Co. Ltd.Controlled by the Company's directors
Innovation Partner Program
supervisors and senior executives
Hunan Xie Zilong Photography
Controlled by the Company's Chairman
Museum Co. Ltd.Other enterprises where close family members of
Beijing Tong Ren Tang Hunan
the chairman of the Company serve as directors
Pharmaceutical Co. Ltd.supervisors and officers
Other enterprises where close family members of
Hunan Wholesale Pharmaceutical
the chairman of the Company serve as directors
Technology Co. Ltd.supervisors and officers
Controlled by close family members of the
Hunan Influence Foundation
Company's Chairman
Enterprise where the Company's directors
Hunan Pharmaceutical Group Co. supervisors or senior executives serve as
Ltd. directors supervisors or senior executives of
other enterprises
Enterprise where the Company's directors
Zhejiang Wecome Pharmaceutical supervisors or senior executives serve as
Company Limited directors supervisors or senior executives of
other enterprises
Enterprise where family members of the
Company's directors supervisors or senior
Hunan Jiusen Ritong Trading Co. Ltd.executives serve as directors supervisors or
senior executives of other enterprises
Enterprise where the Company's directors
supervisors or senior executives serve as
Yabao Pharmaceutical Group Co. Ltd.directors supervisors or senior executives of
other enterprises
Enterprise where the Company's directors
Shanxi Zhendong Pharmaceutical Co. supervisors or senior executives serve as
Ltd. directors supervisors or senior executives of
other enterprises
Enterprise where the Company's directors
Shandong Keyuan Pharmaceutical supervisors or senior executives serve as
Co. Ltd. directors supervisors or senior executives of
other enterprises
Enterprise where the Company's directors
Zhejiang Jingdi Pharmaceutical Co. supervisors or senior executives serve as
Ltd. directors supervisors or senior executives of
other enterprises
Enterprise where the Company's directors
Diabetic Kitchen (Hangzhou) Health supervisors or senior executives serve as
Food Co. Ltd. directors supervisors or senior executives of
other enterprises
351 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Enterprise where the Company's directors
Guangzhou Xincheng Information supervisors or senior executives serve as
Technology Co. Ltd. directors supervisors or senior executives of
other enterprises
Enterprise where the Company's directors
supervisors or senior executives serve as
Dezhan Great Health Co. Ltd.directors supervisors or senior executives of
other enterprises
Enterprise where the Company's directors
supervisors or senior executives serve as
Qingdao BAHEAL Pharmaceutical directors supervisors or senior executives of
Co. Ltd. other enterprises (removed on November 10
2023 and no longer a related party in the current
year)
Enterprise where the Company's directors
supervisors or senior executives serve as
Realcan Pharmaceutical Group Co.directors supervisors or senior executives of
Ltd.other enterprises (removed on October 13 2023
and no longer a related party in the current year)
Other explanations:
None
5. Related party transaction
(1). Related-party transactions on sales of commodities rendering and acceptance of services
Table of purchasing goods / receiving services
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount
Approved Whether Amount
Content of incurred
transaction transaction incurred in
Related party related party during the
limit (if limit exceeded the previous
transaction current
applicable) (if applicable) period
period
Hunan Purchase of 60146196 10210043
Pharmaceuti goods/service 5
cal Group s
Co. Ltd.Hunan Purchase of 11363279 15576184
Mingyuan goods/service
Bee Industry s
Co. Ltd.Hunan Purchase of 11971639 7638453
Wholesale goods/service
Pharmaceuti s
cal
Technology
Co. Ltd.
352 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Zhejiang Purchase of 796598 -
Wecome goods/service
Pharmaceuti s
cal Company
Limited
Hunan Purchase of 9596373 4462686
Jiusen goods/service
Ritong s
Trading Co.Ltd.Beijing Tong Purchase of 55368125 19045985
Ren Tang goods/service
Hunan s
Pharmaceuti
cal Co. Ltd.Yabao Purchase of 36276756 30381888
Pharmaceuti goods/service
cal Group s
Co. Ltd.Hunan Xie Purchase of 1236317 1395482
Zilong goods/service
Photography s
Museum
Co. Ltd.Shanxi Purchase of 15102494 7894350
Zhendong goods/service
Pharmaceuti s
cal Co. Ltd.Shandong Purchase of 583812 2285186
Keyuan goods/service
Pharmaceuti s
cal Co. Ltd.Women & Purchase of 510881
Children's goods/service
Hospital of s
Hunan Co.Ltd.Zhejiang Purchase of 11174697
Jingdi goods/service
Pharmaceuti s
cal Co. Ltd.Guangzhou Purchase of 5859037
Xincheng goods/service
Information s
Technology
Co. Ltd.
353 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Diabetic Purchase of 452777
Kitchen goods/service
(Hangzhou) s
Health Food
Co. Ltd.Qingdao Purchase of 60166
BAHEAL goods/service
Pharmaceuti s
cal Co. Ltd.Realcan Purchase of 6011279
Pharmaceuti goods/service
cal Group s
Co. Ltd.Table of selling goods / providing services
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred
Content of related Amount incurred in
Related party during the current
party transaction the previous period
period
Women & Children's Sale of goods 52069173 57682217
Hospital of Hunan
Co. Ltd.Hunan Wholesale Sale of goods 16534342 16425998
Pharmaceutical
Technology Co. Ltd.Hunan Sale of goods 17900929 19070575
Pharmaceutical Group
Co. Ltd.Hunan Mingyuan Bee Sale of goods - 5565
Industry Co. Ltd.Zhejiang Wecome Sale of goods - 3919816
Pharmaceutical
Company Limited
Beijing Tong Ren Sale of goods 19688202 35290037
Tang Hunan
Pharmaceutical Co.Ltd.Yabao Pharmaceutical Sale of goods 132345 202195
Group Co. Ltd.Guangzhou Xincheng Sale of goods 37341 -
Information -
Technology Co. Ltd.Explanation of related-party transactions for the purchase and sale of goods provision and
acceptance of labor services
√Applicable □Not Applicable
During the year the Group conducted transactions of goods and services with related
parties at agreed prices.
354 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(2). Related entrusted management/contracting and consignment management/subcontracting
situations
Statement of entrusted management/contracting by the Company:
□Applicable √Not Applicable
Explanation of related custody/contracting
□Applicable √Not Applicable
Details of entrusted management/contracting by the Company
□Applicable √Not Applicable
Explanation of related management/contracting
□Applicable √Not Applicable
(3). Details of related leases
The Company as lessor:
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Lease income Rental income
Category of
Lessee name recognized in the recognized in the
leasehold assets
current period previous period
Hunan House leasing 8679889 8697496
Wholesale
Pharmaceutical
Technology
Co. Ltd.
355 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
The Company as lessee:
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during the current period Amount incurred in the previous period
Rental Rental
expenses expenses
Variable Variable
for for
lease lease
short- short-
payment payment
term term
s not s not
leases Born leases Born
included included
Category of and low- interest Added and low- interest Added
Lessor in the in the
leasehold value Rent expense right-of- value Rent expense right-of-
Name measure measure
assets asset paid of lease use asset paid of lease use
ment of ment of
leases liabilitie assets leases liabilitie assets
lease lease
treated s treated s
liabilitie liabilitie
with with
s (if s (if
simplific simplific
applicabl applicabl
ation (if ation (if
e) e)
applicabl applicabl
e) e)
Women & House 204797 192723
Children's leasing
Hospital of
Hunan Co.Ltd. (Note
1)
Explanation of related leasing
√Applicable □Not Applicable
356 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Note 1: The Group leases buildings from the related party Women & Children's Hospital. The book value and changes of the corresponding
right-of-use assets and lease liabilities are as follows:
Right-of-use assets Lease liabilities
January 1 2025 87960 48002
Newly added 1049983 1049983
Depreciation expense 175939
Interest expense 13789
Payment 204797
December 31 2025 962004 906977
357 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(4). Guarantees for or from related parties
The Company as guarantor
□Applicable √Not Applicable
The Company as guaranteed party
□Applicable √Not Applicable
Explanation of related guarantees
□Applicable √Not Applicable
(5). Loans and loans to and from related parties
□Applicable √Not Applicable
(6). Asset transfer and debt restructuring of related parties
□Applicable √Not Applicable
(7). Remuneration of key management personnel
√Applicable □Not Applicable
Unit: RMB'0000 Currency: RMB
Amount incurred during the Amount incurred in the
Item
current period previous period
Remuneration of key
19851410
management personnel
(8). Other related-party transactions
√Applicable □Not Applicable
Amount incurred
Content of related Amount incurred in
Item during the current
party transaction the previous period
period
Hunan Influence Donation 871800 700000
Foundation expenditure
6. Unsettled items receivable from and payable to related parties etc.
(1). Receivables items
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance Opening balance
Name of Related
Book Bad debt Book Bad debt
project party
balance provision balance provision
Accounts Women & 84112574 1028059 90913397 90913
receivable Children's
Hospital of
358 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Hunan Co.Ltd.Accounts Hunan 1469790 11758 752522 6020
receivable Wholesale
Pharmaceut
ical
Technology
Co. Ltd.Accounts Zhejiang 16098 34435
receivable Wecome
Pharmaceut
ical
Company
Limited
Accounts Beijing 457393 3659 2999440 23996
receivable Tong Ren
Tang
Hunan
Pharmaceut
ical Co.Ltd.Accounts Hunan 494204 3954
receivable Pharmaceut
ical Group
Co. Ltd.Accounts Guangzhou 858
receivable Xincheng
Information
Technology
Co. Ltd.Accounts Hunan 147884 11875
receivable Pharmaceut
financing ical Group
Co. Ltd.Prepayments Beijing 2062444
Tong Ren
Tang
Hunan
Pharmaceut
ical Co.Ltd.Prepayment Yabao 10800 28800
s Pharmaceut
ical
(2). Payables items
√Applicable □Not Applicable
Unit: RMB Currency: RMB
359 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Closing book
Name of project Related party Opening book balance
balance
Accounts payable Hunan 4473959 17305517
Pharmaceutical
Group Co. Ltd.Accounts payable Hunan Mingyuan 5617059 7640914
Bee Industry Co.Ltd.Accounts payable Hunan Wholesale 2353777 1216487
Pharmaceutical
Technology Co.Ltd.Accounts payable Zhejiang Wecome 576445 717374
Pharmaceutical
Company Limited
Accounts payable Hunan Jiusen 1280870 335635
Ritong Trading
Co. Ltd.Accounts payable Shanxi Zhendong 6787053 7323684
Pharmaceutical
Co. Ltd.Accounts payable Yabao 2341520 560136
Pharmaceutical
Group Co. Ltd.Accounts payable Shandong Keyuan 520001 1462165
Pharmaceutical
Co. Ltd.Accounts payable Diabetic Kitchen 294557
(Hangzhou)
Health Food Co.Ltd.Accounts payable Zhejiang Jingdi 6368335
Pharmaceutical
Co. Ltd.Accounts payable Realcan 794847
Pharmaceutical
Group Co. Ltd.Accounts payable Beijing Tong Ren 1182754
Tang Hunan
Pharmaceutical
Co. Ltd.Advances from Hunan Wholesale 1446648 880381
customers Pharmaceutical
Technology Co.Ltd.Contract liabilities Hunan 14583
Pharmaceutical
Group Co. Ltd.
360 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Contract liabilities Zhejiang Wecome 2620
Pharmaceutical
Company Limited
Contract liabilities Hunan Jiusen 11016
Ritong Trading
Co. Ltd.Contract liabilities Women & 3217 3219
Children's
Hospital of Hunan
Co. Ltd.Other payables Innovation Partner 42398775 42398775
Program
Other payables Hunan Wholesale 770400 770400
Pharmaceutical
Technology Co.Ltd.Other payables Zhejiang Wecome 30000
Pharmaceutical
Company Limited
Other payables Hunan Mingyuan 1000
Bee Industry Co.Ltd.Other payables Guangzhou 19728
Xincheng
Information
Technology Co.Ltd.Non-current Women's and 48761 48002
liabilities due Children's
within one year Hospital
Lease liabilities Women's and 858216
Children's
Hospital
(3). Other items
□Applicable √Not Applicable
7. Related-party commitments
□Applicable √Not Applicable
8. Others
□Applicable √Not Applicable
XV. Share-based payment
1、 Equity instruments
(1). Details
√Applicable □Not Applicable
361 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Quantity unit: share Amount unit: RMB Currency: RMB
Expirations
Grants made in Exercises during Unlocks during
Category during the current
the current period the current period the current period
of period
grantee Quantit Amoun Quantit Amoun Quantit Amoun Quantit Amoun
y t y t y t y t
Manage 10170 11092
ment 000 368
Personne
l
1017011092
Total
000368
(2). Stock options or other equity instruments outstanding at the end of the period
√Applicable □Not Applicable
Stock options outstanding at the Other equity instruments
Category of end of the period outstanding at the end of the period
grantee Range of Remaining Range of Remaining
exercise prices contractual term exercise prices contractual term
Management Equity price on From the sixth
Personnel the grant date year after the
partnership
acquired the
equity interest in
the target
company i.e.August 15 2027
Other Explanations
Innovation partner program refers to the establishment of a limited partnership (hereinafter
referred to as "partnership") jointly funded by qualified core managers with their own funds.The partners hold the shares of the innovation companies (hereinafter referred to as “targetcompanies”).Target companies of the innovation partner program: LBX Health Pharmacy Group Chain
Co. Ltd. Hunan Easy Drug Technology Co. Ltd. and Hunan Baixingtang Famous Doctors'
Clinic Traditional Chinese Medicine Management Co. Ltd..The limited partnerships established for the purpose of implementing the innovation partner
program in the current period: Hainan Xinzhili Enterprise Management Partnership (Limited
Partnership) and Hainan Jianlixing Enterprise Management Partnership (Limited
Partnership).The innovation partner program was considered at the third meeting of the fourth Board of
Directors of the Company held on April 27 2021 and approved at the 2020 annual general
shareholders’ meeting of the Company held on 18 May 2021 upon deliberation. The
innovation partners plan to have the Company's core management personnel jointly build a
partnership platform and acquire minority interests in existing innovation subsidiaries from
LBX or their holding subsidiaries. In order to achieve the medium and long-term incentive
results unless the partnership might transfer the equity of the target companies to the
362 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Company due to the situation that the partner must withdraw the partnership shall not
transfer its equity of the target companies within five years from the date of obtaining the
equity of the target companies (hereinafter referred to as "equity lock-up period"). After the
expiration of the equity lock-up period that is from the sixth year after the partnership
acquires the equity of the target companies the partnership may transfer its equity of the
target companies. If the partnership transfers the equity of the target companies the
Company shall have the right of first refusal under the same conditions.
2、 Situation of equity-settled share-based payments
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Recipients of equity-settled share-based
payments
Method for determining the fair value of Equity transaction price in the past 6
equity instruments granted months on the date of grant/
Important parameters of the fair value of /
equity instruments on the grant date
Basis for determining the number of Quota base of restricted stock
exercisable equity instruments
Reasons for significant differences between None
current and prior period estimates
Accumulated amount recorded in capital 11092368
surplus for equity-settled share-based
payment
Other explanations:
None
3、 Cash-settled share-based payments
□Applicable √Not Applicable
4、 Share-based payment expense during the period
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Equity-settled share-based Cash-settled share-based
Category of grantee
payment expenses payment expenses
Management Personnel 11092368
Total 11092368
Other Explanations
None
5、 Modification or termination of share-based payments
□Applicable √Not Applicable
363 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
6、 Others
□Applicable √Not Applicable
XVI. Commitments and contingencies
1、 Significant commitments
□Applicable √Not Applicable
2、 Contingencies
(1). Significant contingencies existing on the balance sheet date
√Applicable □Not Applicable
20252024
Capital - 1584735
commitments
Investment 1792404 5052820
commitments
Total 1792404 6637555
(2). If the Company has no significant contingent liabilities to disclose it shall also be stated.
□Applicable √Not Applicable
3、 Others
□Applicable √Not Applicable
XVII. Events after the Balance Sheet Date
1. Important non-adjustment matters
□Applicable √Not Applicable
2. Details of profit distribution
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Profit or dividend to be distributed 204900364
Profit or dividend declared to be
distributed after deliberation and
approval
3. Sales returns
□Applicable √Not Applicable
364 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
4. Explanation of other events after the balance sheet date
□Applicable √Not Applicable
XVIII. Other significant matters
1. Correction of prior period accounting errors
See the Company's Explanation and Analysis on the Reasons and Influences of Changes in
Accounting Policies and Accounting Estimates or Correction of Major Accounting Errors
in "Important Notes"
2. Significant debt restructuring
□Applicable √Not Applicable
3. Asset replacement
(1). Swap of non-monetary assets
□Applicable √Not Applicable
(2). Other asset swaps
□Applicable √Not Applicable
4. Annuity plan
□Applicable √Not Applicable
5. Discontinued operations
□Applicable √Not Applicable
6. Segment information
(1). Basis for determining reportable segments and accounting policies
√Applicable □Not Applicable
For management purposes the Group divides business units based on products and
services. Because various businesses require different technologies and market strategies
the Group manages the production and operating activities of each reportable segment
independently primarily using operating income and operating cost to evaluate its
operating results and performance.The Group currently has three reportable segments: Retail business Wholesale business
and Other segments where:
- Retail segment is responsible for engaging in commodity retail business
- Wholesale segment is responsible for engaging in commodity wholesale business
- Other segment is responsible for engaging in pharmaceutical manufacturing business and
others
365 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
The Group uses operating income and operating cost for regular management analysis and
does not report or manage assets and liabilities by segment.The evaluation on the performance of divisions is based on the reported profits of each
division. This indicator is consistent with the Group's profit before tax. Total segment profit
is calculated as segment operating income less segment operating costs taxes and
surcharges and selling expenses.Transfer pricing between operating segments is mainly determined by reference to the cost
of purchased inventory.The Group's customers are relatively dispersed and there is no single customer whose
transaction amount with the Group exceeds 10%.
(2). Financial information of reportable segments
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Retail Wholesale Other Unallocate Inter-
segment segment segment d amounts segment
Item Total
eliminatio
ns
Operating 1911484 1231126 4420230 - 2223661
income 4302 4033 39 9631516 5347
027
Of which: 1911484 3003707 1180630 2223661
External 4302 956 89 5347
transaction
revenue
Inter-segment 9307556 3239599 -
transaction 077 50 9631516
revenue 027
Operating - - - 9301117 -
costs 1289498 1106115 3997146 261 1505473
03557008334735
Taxes and - - - -
surcharges 4828353 2691821 2686284 7788803
510
Selling - - - -
expenses 4464021 2289821 6219223 4699222
18956568
Administrative - -
expenses 1288100 1288100
931931
R&D expenses - -
51071545107154
99
366 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Financial - -
expenses 1304244 1304244
3333
Other income 7920671 7920671
00
Investment 896794 896794
income
Credit - -
impairment 1851563 1851563
losses 4 4
Asset - -
impairment 2513626 2513626
loss 91 91
Gains or losses -3542326 -
on disposal of 3542326
assets
Total profit 1707559 9942066 3340289 - - 7561688
2235891648601330398790
12466
Income tax - -
expenses 2157193 2157193
9191
Net profit 5404494 5404494
9999
(3). If the Company has no reportable segments or cannot disclose the total assets and total
liabilities of each reportable segment the reason should be explained
□Applicable √Not Applicable
(4). Other Explanations
√Applicable □Not Applicable
External transaction revenue
20252024
Sale of goods 21653953093 21795041563
Rendering of services 513997830 486543209
Total 22167950923 22281584772
7. Other material transactions and matters which impacts on decision-making of investors
□Applicable √Not Applicable
8. Others
□Applicable √Not Applicable
367 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
XIX. Notes to main items of financial statements of the parent company
1、 Accounts receivable
(1). Disclosure by aging
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Aging Closing book balance Opening book balance
Within 1 year (inclusive) 528410319 517557251
Within 1 year 528410319 517557251
1-2 year(s) 20568529 2850183
2-3 years 1499467 147401
Over 3 years 262513 144059
Total 550740828 520698894
(2). Disclosure by accrual method for bad debt provision
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance Opening balance
Book Bad debt Bad debt
Book balance
balance provision provision
Category Prop Accr Book Accr Book
Prop
Amo ortio Amo ual value Amo Amo ual value
ortio
unt n unt ratio unt unt ratio
n (%)
(%)(%)(%)
Bad debt
provision
made
individually
Including:
Bad debt
55071075395206515
provision 4972
40821009450.9894698891000.95726
made by 207
8702584687
portfolio
Including:
Bad debt
provision
accrued by 5507 107 539 5206 515
4972
portfolio of 4082 100 945 0.98 946 9889 100 0.95 726
207
credit risk 8 70 258 4 687
characteristi
cs
55071075395206515
4972
Total 4082 / 945 / 946 9889 / / 726
207
8702584687
368 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Bad debt provision accrued individually:
□Applicable √Not Applicable
Bad debt provision made on a portfolio basis:
√Applicable □Not Applicable
Items for portfolio provision: bad debt provision accrued by portfolio of credit risk
characteristics
Unit: RMB Currency: RMB
Closing balance
Name
Book balance Bad debt provision Accrual ratio (%)
Medical insurance
receivables 513837161 10319455 2.01
portfolio
Enterprise trade
48351694531.96
receivables
Others 36420151 465662 1.28
Total 550740828 10794570 /
Explanation of accrual of bad debt provision by portfolio:
√Applicable □Not Applicable
For accounts receivable the Company measures the credit loss provision based on lifetime
ECL.When determining the ECL for accounts receivable the Company considers historical
actual impairment situations and considers forecasts of current conditions and future
economic conditions.It divides accounts receivable into three portfolios: medical insurance receivables
enterprise trade receivables and others providing bad debt provisions based on credit risk
characteristic portfolios.Bad debt provision based on the general model of ECL
□Applicable √Not Applicable
Basis for stage classification and bad debt provision ratio
None
Explanation of significant changes in the book balance of accounts receivable with changes in loss
provision during the period:
□Applicable √Not Applicable
(3). Bad debt provision
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Change amount during the current period
Opening Recovery Charge- Closing
Category Other
balance Provision or off or balance
changes
reversal write-off
Accounts
49722075822363---10794570
receivable
Total 4972207 5822363 - - - 10794570
369 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Including recovered or reversed amount for the bad debt provisions in the current period:
□Applicable √Not Applicable
Other explanations:
None
(4). Actual write-off of accounts receivable during the current period
□Applicable √Not Applicable
Write-off of significant accounts receivable
□Applicable √Not Applicable
Explanations about written-off accounts receivable:
□Applicable √Not Applicable
(5). Situation of accounts receivable and contract assets for the top five debtors by closing balance
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Proportion to
Closing the total
Closing Closing balance of closing Closing
Company balance of balance of accounts balance of balance of
name accounts contract receivable accounts bad debt
receivable assets and contract receivable provision
assets and contract
assets (%)
Changsha
Medical
Insurance
-62.023032771
Manageme 341592621 341592621
nt Service
Bureau
Shanghai
Pukang
Health
Manageme 23198296 - 23198296 4.21 139190
nt
Consulting
Co. Ltd.Xiangtan
Medical
Maternity
Insurance 18671825 - 18671825 3.39 74687
Manageme
nt Service
Bureau
370 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Chenzhou
Medical
17221251-172212513.1368885
Insurance
Office
Xiangxiang
Medical
Maternity
Insurance 13604140 - 13604140 2.47 129683
Manageme
nt Service
Bureau
Total - 3445216
414288133414288133
Other explanations:
None
Other explanations:
□Applicable √Not Applicable
2、 Other receivables
Presentation by item
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividends receivable 27708652 8198830
Other receivables 4709057910 5001500047
Total 4736766562 5009698877
Other explanations:
□Applicable √Not Applicable
Interest receivable
(1).Classification of interest receivable
□Applicable √Not Applicable
(2).Significant overdue interest
□Applicable √Not Applicable
(3).Disclosure by accrual method for bad debt provision
□Applicable √Not Applicable
Bad debt provision accrued individually:
□Applicable √Not Applicable
Explanation of individually accrued bad debt provision:
371 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
□Applicable √Not Applicable
Bad debt provision made on a portfolio basis:
□Applicable √Not Applicable
(4).Bad debt provision based on the general model of ECL
□Applicable √Not Applicable
Basis for stage classification and bad debt provision ratio
None
Explanation of significant changes in the book balance of interest receivable with changes in loss provision
during the current period:
□Applicable √Not Applicable
(5).Bad debt provision
□Applicable √Not Applicable
Including recovered or reversed amount for the bad debt provisions in the current period:
□Applicable √Not Applicable
Other explanations:
None
(6).Interest receivable actually written off for the current period
□Applicable √Not Applicable
Wherein write-off of significant interests receivable
□Applicable √Not Applicable
Write-off explanation:
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
Dividends receivable
(1).Dividends receivable
□Applicable √Not Applicable
(2).Important dividends receivable with the aging of more than 1 year
□Applicable √Not Applicable
(3).Disclosure by accrual method for bad debt provision
□Applicable √Not Applicable
372 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Bad debt provision accrued individually:
□Applicable √Not Applicable
Explanation of individually accrued bad debt provision:
□Applicable √Not Applicable
Bad debt provision made on a portfolio basis:
□Applicable √Not Applicable
(4).Bad debt provision based on the general model of ECL
□Applicable √Not Applicable
Basis for stage classification and bad debt provision ratio
None
Explanation of significant changes in the book balance of dividends receivable with changes in loss
provision during the current period:
□Applicable √Not Applicable
(5).Bad debt provision
□Applicable √Not Applicable
Including recovered or reversed amount for the bad debt provisions in the current period:
□Applicable √Not Applicable
Other explanations:
None
(6).Dividends receivable actually written off for the current period
□Applicable √Not Applicable
Wherein write-off of significant dividends receivable
□Applicable √Not Applicable
Write-off explanation:
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
Other receivables
(1).Disclosure by aging
√Applicable □Not Applicable
Unit: RMB Currency: RMB
373 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Aging Closing book balance Opening book balance
Within 1 year (inclusive) 1566908256 1656894293
Within 1 year 1566908256 1656894293
1-2 year(s) 980957105 1032486174
2-3 years 829753476 1777707890
Over 3 years 1335406736 537395067
Total 4713025573 5004483424
(2).Classification by nature of funds
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Nature of funds Closing book balance Opening book balance
Receivables from subsidiaries 4642950369 4930294806
Receivables from third parties 11377292 13361136
Electronic wallet 32739363 20246097
Deposits 1603685 1804676
Advances 10797989 9321954
Store petty cash 2612890 9434740
Employee advances 5628612 9809632
Others 5315373 10210383
Total 4713025573 5004483424
(3).Bad debt provision
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Stage 1 Stage 2 Stage 3
Bad debt
ECL for the Lifetime ECL (not Lifetime ECL Total
provision
next 12 months credit-impaired) (credit-impaired)
Balance as of 2288127 695250 2983377
January 01 2025
Balance at 2288127 695250 2983377
January 01 2025
Accrual in the 1037286 1037286
current period
Reversal in the -30000 -30000
current period
Charge-off in the
current period
Write-off in the -23000 -23000
current period
Other changes
Balance as of 3272413 695250 3967663
December 31
2025
Basis for stage classification and bad debt provision ratio
374 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
None
Explanation of significant changes in the book balance of other receivables with changes in loss provision
during the current period:
□Applicable √Not Applicable
The amount of bad debt provision for the current period and the basis for assessing whether
credit risks of financial instruments have increased significantly:
□Applicable √Not Applicable
(4).Bad debt provision
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Change amount during the current period
Opening Recovery Charge-off Closing
Category Other
balance Provision or or write- balance
changes
reversal off
Other
2983377103728630000-30000-3967663
receivables
Total 2983377 1037286 30000 -30000 - 3967663
Wherein: the amount of bad debt provision reversed or recovered during the current period
is significant:
□Applicable √Not Applicable
Other explanations:
None
(5).Actual write-off of other receivables during the period
□Applicable √Not Applicable
Wherein write-off of other significant accounts receivable:
□Applicable √Not Applicable
Explanation about write-off of other receivables
□Applicable √Not Applicable
(6).Situation of other receivables for the top five debtors by closing balance
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Proportion of Bad debt
Company Closing total closing provision
Nature Aging
name balance balance to other Closing
receivables (%) balance
375 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Forworld Holding Within
Medicine Subsidiarie three years
175940
Logistics 37.33 s and over
4477
(Hunan) three years
Co. Ltd.LBX Holding Within
Pharmacy Subsidiarie three years
365757
Chain 7.76 s and over
590
Henan Co. three years
Ltd.Changsha Holding Within
Faxiangdi 322329 Subsidiarie three years
6.84
Industrial 893 s and over
Co. Ltd. three years
Hunan Holding Within
Baixin Subsidiarie three years
316741
Information 6.72 s and over
900
Technology three years
Co. Ltd.Hunan LBX Holding Within
Huairen 158503 Subsidiarie three years
3.36
Pharmaceuti 438 s
cal Co. Ltd.
292273
Total 62.01 / /
7298
(7).Presented in other receivables due to centralized fund management
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
3、 Long-term equity investments
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance Opening balance
Impairm
Impairm
Item Book ent Book Book Book
ent
balance provisio value balance value
provision
n
Investment in 664494 199585 664295 623894 199585 623695
subsidiaries 8099 4 2245 8099 4 2245
Investment in
674613674613721404721404
associates and joint
76769191
ventures
671240199585671041631108199585630909
Total
947543621859042736
376 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(1). Investment in subsidiaries
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Openin Increase/decrease during the current
Closing
g period
Openin balance
balance Closing
g Impair of
of Additio Reducti balance
Investee balance ment impair
impair nal on in (book
(book provisi Others ment
ment investm investm value)
value) on provisi
provisi ent ent
made on
on
LBX 52376 52376
Pharmac 383 383
y Chain
(Zhejian
g) Co.Ltd.Guangxi 28544 285444
Compan 4127 127
y
LBX 16691 166915
Pharmac 5787 787
y Chain
(Tianjin)
Co. Ltd.Changzh 88400 88400
ou 000 000
Wanren
Compan
y
Forworl 90000 90000
d 000 000
Medicin
e
Logistics
(Hunan)
Co. Ltd.Anhui 31345 313459
Baixingy 9205 205
uan
Lanzhou 58775 587752
Huirenta 2000 000
ng
Yangzho 34487 344870
u 0000 000
Baixinyu
an
Jiangsu 14253 142537
Baijiahui 7076 076
377 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Tongliao 27137 271370
Zeqiang 0000 000
Zhenjian 11041 110416
g 6308 308
Huakang
Longtaiy 17636 176364
uan 4223 223
Nantong 11730 117300
Puze 0000 000
Linjiayi 51000 51000
000000
Jiangsu 79750 79750
Haipeng 000 000
Linyi 68340 68340
Rende 000 000
Sanpinta 43750 43750
n 000 000
Shanxi 11092 110925
Baihui 5000 000
LBX 48197 48197
Pharmac 000 000
y Chain
(Hengya
ng) Co.Ltd.Forworl 10000 100000
d 0000 000
Medicin
e
Logistics
(Jiangsu)
Co. Ltd.Yaoshen 55000 55000
gtang 000 000
Chinese
Medicin
e
Technol
ogy
Hunan 74537 74537
Baixin 749 749
Yinchua 48810 48810
n 00 00
Xinchen
g
Chifeng 68000 680000
LBX 0000 000
Hainan 20000 20000
LBX 00 00
378 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Medical
Health
Co. Ltd.LBX 18200 38500 22050
Huairen 01784 0000 01784
Hunan 10000 100000
Linggan 0
Yaodian
Cultural
Creativit
y Co.Ltd.Shandon 29583 29583
g LBX 000 000
Chuntian
Pharmac
y Chain
Co. Ltd.Others 32168 - 21000 342681 -
16031995800060319958
5454
--
623694060066429
Total 19958 19958
52245000052245
5454
(2). Investment in associates and joint ventures
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Increase/decrease during the current period
Profit
or
loss Adju
Closi
Open recog stme Decla Closi
ng
ing Red nized nt to ration ng
Addi Othe Impa balan
Bala ucti on othe of Bala
Invest tiona r irme ce of
nce on inves r cash nce
ment l equit nt Othe impa
(boo in tment com divid (boo
Unit inves y provi rs irme
k inve s preh ends k
tmen chan sion nt
value stme under ensi or value
t ges made provi
) nt the ve profit )
sion
equit inco s
y me
meth
od
I. Joint ventures
379 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Subto
tal
II. Associates
Huna
n
Phar
-674
mace 7214 6746
4679613
utical 0491 1376
11576
Grou
p Co.Ltd.-674
Subto 7214 6746
4679613
tal 0491 1376
11576
-674
72146746
Total 4679 613
04911376
11576
(3). Impairment test of long-term equity investments
□Applicable √Not Applicable
Other explanations:
None
4、 Operating income and operating cost
(1). Details of operating income and operating cost
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during the Amount incurred in the
Item current period previous period
Revenue Cost Revenue Cost
44224327202949335505
Main business
43892695742924199065
Other business 41954536 12908574 56035930 14430797
Total 4431224110 2937107639 4478468650 2963766302
(2). Breakdown information of operating income and operating costs
□Applicable √Not Applicable
Other explanations:
□Applicable √Not Applicable
(3). Description of performance obligation
□Applicable √Not Applicable
380 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
(4). Explanation of allocation to remaining performance obligations
□Applicable √Not Applicable
(5). Significant contract changes or adjustments to transaction prices
□Applicable √Not Applicable
Other explanations:
None
5、 Investment income
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Amount incurred during Amount incurred in the
Item
the current period previous period
Long-term equity investment
income accounted for using cost 567094830 220585426
method
Income from long-term equity
investments accounted for using -4679115 4319300
the equity method
Investment income from disposal
1095882
of long-term equity investments
Investment income from trading
financial assets during holding 1288466 1206496
period
Dividend income from other equity
instrument investments during the
holding period
Interest income from debt
investments during the holding
period
Interest income from other debt
investments during the holding
period
Investment income from disposal
of trading financial assets
Investment income from disposal
of other equity instrument
investments
Investment income from disposal
of debt investments
Investment income from disposal
of other debt investments
Debt restructuring income
Income from fund borrowing 2425378 3240383
381 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
Investment income from disposal
of other non-current financial 1955891
assets
Total 568085450 230447487
Other explanations:
None
6、 Others
□Applicable √Not Applicable
XX. Supplementary information
1.Details of non-recurring gains and losses during the period
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Amount Explanation
Gains or losses from the disposal of non-current assets
including the reversal of any previously provided for asset -3542326
impairment
Government grants recognized in the current profit or loss
except for government grants that are closely related to the
Company's normal business operations comply with
26407173
national policy provisions are enjoyed according to
established standards and have continuous impacts on the
Company's profit or loss
Except for effective hedging transactions related to the
Company's normal business operations the gains or losses
from changes in the fair value of financial assets and 4966241
liabilities held by non-financial enterprises as well as gains
or losses from the disposal of financial assets and liabilities
Fund possession costs that are recorded in current profit or
loss and are charged from the non-financial enterprises
Profit or loss from entrusting others to make investment or
management of assets
Profit or loss from obtaining of entrusted loans
Various asset losses caused by force majeure factors such
as natural disasters
Reversal of impairment provision for accounts receivable
70000
subject to individual impairment test
Profits from deficiency of the investment costs for
acquisition of the subsidiaries associates and joint ventures
below the fair value of the net identifiable assets received
from the investee at the time of investment
Current net profit or loss of subsidiaries generated from
business combinations involving enterprises under common
control from the beginning of the period to the date of
consolidation
Profit or loss from exchange of non-monetary assets
Profit or loss from debt restructuring
One-time expenses incurred by the enterprise due to the
discontinuation of related business activities such as
expenditures for the resettlement of employees
382 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
One-time impact on the current profit or loss due to
adjustments in tax accounting and other laws and
regulations
One-time share-based payment expenses recognized due to
the cancellation or modification of equity incentive plans
For cash-settled share-based payments the gains or losses
generated by changes in the fair value of employee
compensation payable after the exercise date
Profit or loss from change in fair value of investment
property that is subsequently measured at fair value
Profits generated from transactions that are obviously
unfair in terms of transaction price
Profit or loss from contingencies that are irrelevant to the
normal operation business of the Company
Trustee fee income from entrusted operation
Other non-operating income and expenses other than the
14312936
items listed above
Other profit or loss items that conform to the definition of
non-recurring profit or loss
Less: impact of income tax -3461353
Influence of minority equity (after-tax) -3536561
Total 35216110
The non-presented items defined as non-recurring profit or loss items at significant amount
by the Company according to the Explanatory Announcement No. 1 on Information
Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss as
well as he non-recurring profit or loss items listed in Explanatory Announcement No. 1 on
Information Disclosure of Companies Issuing Securities to the Public - Non-recurring
Profit or Loss shall be accounted for.√Applicable □Not Applicable
Unit: RMB Currency: RMB
Item Amount involved Reason
Closely related to
VAT reduction/exemption for small-
51123215 normal business
scale taxpayers
operations
Other explanations:
□Applicable √Not Applicable
2.Return on net assets and EPS
√Applicable □Not Applicable
Weighted Earnings per share (EPS)
Profit for the reporting
average return
period Basic EPS Diluted EPS
on equity (%)
Net profits attributable to
ordinary shareholders of 5.66 0.50 0.50
the Company
Net profits attributable to
shareholders of the
5.610.460.46
Company net of non-
recurring profit or loss
383 / 384LBX Pharmacy Chain Joint Stock Company2025 Annual Report
3.Differences in Accounting Data under Domestic and Overseas Accounting Standards
□Applicable √Not Applicable
4.Others
□Applicable √Not Applicable
Chairman: Xie Zilong
Date of approval for submission by the Board of Directors: April 22 2026
Revision information
□Applicable √Not Applicable
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