Key takeaway

On April 22, the company released its 2025 annual performance report.For the full year 2025, it achieved operating revenue of RMB24.433bn, up1.54% YoY, and net profit attributable to shareholders of the parent company of RMB1.678bn, up9.81% YoY. Deducted net profit attributable to shareholders of the parent company was RMB1.612bn, up7.65% YoY, and basic earnings per share was RMB1.38. The results were in line with our previous report expectations. Looking ahead to2026, the company's same-store growth is expected to improve quarter by quarter, store count is expected to enter a net addition cycle, and top-line growth is expected to improve sequentially. Coupled with the company's ongoing cost reduction and efficiency enhancement efforts and the steady implementation of store renovations, we are positive on the steady improvement of the company's operating quality.

Event

The company released its 2025 annual report and 1Q26 report, with results in line with our expectations On April 22, the company released its 2025 annual report and 1Q26 report. For 2025, operating revenue, net profit attributable to shareholders of the parent company, and deducted net profit attributable to shareholders of the parent company were RMB24.433bn, RMB1.678bn, and RMB1.612bn, respectively, representing YoY increases of 1.54%, 9.81%, and 7.65%. In 1Q26, the company achieved operating revenue of RMB6.085bn and net profit attributable to shareholders of the parent company of RMB500mn, representing YoY increases of 1.26% and 11.14%, respectively. The results were in line with ourprevious report expectations.

YIFENG PHARMACY plans to distribute a cash dividend of RMB0.40 per share (tax inclusive, excluding interim dividends) to all shareholders, with no capital reserve conversion and no bonus shares. This proposal is still subject to approval by the company's shareholders' meeting before implementation.