益丰药房:益丰药房2025年年度报告（英文版）

Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

Company code: 603939 Company abbreviation: Yifeng Pharmacy

Yifeng Pharmacy Chain Co. Ltd.

2025 Annual Report

This report is prepared in both Chinese and English and is published electronically. If there is any

inconsistency between the two versions the Chinese version shall prevail.

1/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

Important Notes

I. The Board of Directors directors and senior management of the Company hereby guarantee

that the contents are authentic accurate and complete without false records misleading

representations or material omissions in the Annual Report and shall take all the joint and several

legal liabilities.II. All the directors have attended the meeting of the Board of Directors.III. Pan-China Certified Public Accountants LLP has issued a standard unqualified audit report

for the Company.IV. Gao Yi the Company's responsible person Gao Youcheng responsible person in charge of

accounting work and Guan Changfu the accounting firm's responsible person (accounting

superintendent) hereby declare and warrant that the financial report in the Annual Report is

authentic accurate and complete.V. The plan of profit distribution or the conversion of capital reserves into share capital for the

Reporting Period has been approved by the Board of Directors

As audited by Pan-China Certified Public Accountants LLP (special general partnership) the

undistributed profit of the Company (parent company basis) as of December 31 2025 amounted to

CN￥775719439.87.The Company proposes to distribute a cash dividend of CN￥0.40 (tax included) per share to all

shareholders. Based on the Company’s total share capital of 1212392331 shares as of March 31 2026

the total proposed cash dividend amounts to CN￥484956932.40 (tax included). If the Company’s total

share capital changes during the period from the date of disclosure of this profit distribution plan to the

record date for the implementation of equity distribution (e.g. due to the conversion of convertible bonds)

the Company intends to keep the pershare dividend unchanged and adjust the total distribution amount

accordingly. Any such adjustment will be disclosed separately. The profit distribution plan above is subject

to approval by the Company’s shareholders at the general meeting before implementation.Information on uncovered tax losses of the parent company and their impact on the Company's

profit distribution and other matters as of the end of the Reporting Period

"□ Applicable" "√ Not applicable"

VI. Risk statement on forward-looking statements

"√ Applicable" "□ Not applicable"

2/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

The forward-looking statements such as future plans and development strategies in the Annual

Report do not constitute a substantive commitment of the Company to investors. Investors should

therefore make rational investments based on an awareness of risk factors.VII. Are there cases of non-operational fund occupancy by the controlling shareholder and other

related parties

VIII. Have there been any breaches of established decision-making procedures in providing

guarantees to external parties

IX. Has there been a situation where more than half of the directors cannot guarantee that the

Annual Report disclosed by the Company is authentic accurate and complete

X. Significant risk warnings

During the Reporting Period no significant risks had a substantial impact on the Company's

production and operation activities. The Company has extensively elaborated on potential risks in this

report. For more details please refer to Subsection "Potential risks" under Section III "Management

Discussion and Analysis".XI. Others

"□ Applicable" "√ Not applicable"

3/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

Contents

Section I Paraphrase ................................ 5

Section II Company Profile and Main Financial Indi... 5

Section III Management Discussion and Analysis ..... 11

Section IV Corporate Governance Environment and So.. 43

Section V Important Matters ........................ 67

Section VI Changes in Shares and Shareholders ...... 94

Section VII Overview of Bonds ..................... 102

Section VIII Financial Statements ................. 104

Accounting statements with the signatures and seals of the Company's

responsible person the responsible person in charge of accounting work and

the responsible person of the accounting firm (accounting superintendent)

Contents of Reference The original copies of all documents and announcements publicly disclosed

File by the Company in the newspapers designated by the China Securities

Regulatory Commission (CSRC) during the Reporting Period including

Shanghai Securities News China Securities Journal Securities Times and

Securities Daily

4/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

Section I Paraphrase

I. Paraphrase

In this report unless stated otherwise the following terms shall be interpreted as follows:

Common terms and their definitions

The Company Company and Means Yifeng Pharmacy Chain Co. Ltd.Yifeng Pharmacy

Houxin Means Controlling shareholder of Ningbo Meishan Free Trade

Port Area Houxin Venture Capital Partnership (Limited

Partnership)

Yizhifeng Means Ningbo Meishan Free Trade Port Area Yizhifeng

Enterprise Management Partnership (Limited Partnership)

a shareholder of the Company

Yirentang Means Ningbo Meishan Free Trade Port Area Yirentang

Enterprise Management Partnership (Limited Partnership)

a shareholder of the Company

Hunan Yifeng Pharmaceutical Means Hunan Yifeng Pharmaceutical Co. Ltd.Shijiazhuang Xinxing Means Shijiazhuang Xinxing Pharmacy Chain Co. Ltd.Jiangsu Yifeng Means Jiangsu Yifeng Pharmacy Chain Co. Ltd.Hubei Yifeng Means Hubei Yifeng Pharmacy Chain Co. Ltd.CSRC Means China Securities Regulatory Commission

Company Law Means Company Law of the People's Republic of China

Securities Law Means Securities Law of the People's Republic of China

O2O Means Online To Offline which integrates offline business

opportunities with the Internet thus effectively making the

Internet a platform for offline transactions.B2C Means Business To Customer an e-commerce model in which

enterprises directly sell their products or services to

consumers. This type of e-commerce typically relies on

network retail.CRM Means Customer Relationship Management a system that

enterprises use to manage relationships with their

customers.SAP Means Systems Applications and Products in Data Processing a

software used to manage solutions.AGV Means Automated Guided Vehicle a vehicle used for material

handling and transportation with an automated guide.GSP Means Good Supply Practice.ESG Means Environmental Social and Governance.MSCI Means Morgan Stanley Capital International a leading provider of

ESG ratings.During the Reporting Period and Means From January 1 2025 to December 31 2025.within the Reporting Period

CN￥ CN￥10000 Means Chinese Yuan Chinese Yuan 10000

Shanghai Stock Exchange website Means www.sse.com.cn

Section II Company Profile and Main Financial Indicators

I. Company information

Chinese name Yifeng Pharmacy Chain Co. Ltd.Chinese abbreviation Yifeng Pharmacy

English name Yifeng Pharmacy Chain Co. Ltd.English abbreviation Yifeng Pharmacy

Legal representative Gao Yi

5/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

II. Contacts and contact information

Secretary of the Board of Directors Securities Affairs Representative

Name Fan Wei Luo Gongzhao

No. 68 Jinzhou Avenue Lugu High-tech No. 68 Jinzhou Avenue Lugu High-tech

Address

Zone Changsha City Hunan Province Zone Changsha City Hunan Province

Tel. 0731-89953989 0731-89953989

Fax 0731-89953989 0731-89953989

E-mail ir@yfdyf.com ir@yfdyf.com

III. Basic information

No. 2638 Renmin Road Fuqiang Community Baimahu

Registered address

Subdistrict Wuling District Changde City Hunan Province

Alteration of registered address None

No. 68 Jinzhou Avenue Lugu High-tech Zone Changsha

Office address

City Hunan Province

Post code of office address 410000

Website www.yfdyf.cn

E-mail ir@yfdyf.com

IV. Information disclosure and place of the report

Media to which the Company's Annual Report China Securities Journal Securities Times Shanghai

is disclosed and their websites Securities News and Securities Daily

Website of the stock exchange to which the www.sse.com.cn

Company's Annual Report is disclosed

Place where the Company's Annual Report is Office of the Board of Directors

formulated

V. Company stock

Company stock

Stock abbreviation

Stock type Stock exchange Stock abbreviation Stock code

before change

A share Shanghai Stock Yifeng Pharmacy 603939 /

Exchange

VI. Other related information

Pan-China Certified Public Accountants LLP

Name

(special general partnership)

Block B China Resources Building No.1366

Accounting firm employed by the Office address Qianjiang Road Jianggan District Hangzhou

Company (domestic) City Zhejiang Province

Names of

undersigned Wei Wujun and Jiang Fengfeng

accountants

Name CITIC Securities Company Limited

CITIC Securities Tower No. 48 Liangmaqiao

Office address

Sponsor institution providing Road Chaoyang District Beijing

continuous supervision during the Signing sponsor

Ding Yuan and Zhao Yan

Reporting Period representatives

Continuous From March 2024 until the complete utilization

supervision period of raised funds

6/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

VII. Main accounting data and financial indicators in the recent three years

(i) Main accounting data

Unit:CN￥ Currency: CNY

Increase/Decrease

Main accounting data 2025 2024 over the previous 2023

year (%)

Operating revenue 24433165197.50 24062154701.73 1.54 22588227402.22

Total profits 2456394852.41 2182447381.72 12.55 2037593919.93

Net profit attributable to

shareholders of the listed 1678481865.01 1528576669.36 9.81 1411985024.41

company

Net profit attributable to

shareholders of the listed

company after deduction 1611562235.26 1497081296.82 7.65 1361512589.23

of non-recurring profits

and losses

Net cash flow from

3358448014.414221267084.53-20.444623740795.60

operating activities

Increase/Decrease

over the end of

At the end of 2025 At the end of 2024 At the end of 2023

the previous year

(%)

Net assets attributable to

shareholders of the listed 11634287444.84 10725687023.42 8.47 9804432476.56

Company

Total assets 27451924048.58 27974736950.35 -1.87 24136539194.64

(ii) Main financial indicators

Increase/Decrease

Main financial indicators 2025 2024 over the previous 2023

year (%)

Basic earnings per share

1.381.269.521.17

(CN￥/share)

Diluted earnings per share

1.361.249.681.17

(CN￥/share)

Basic earnings per share with non-

recurring profits and losses 1.33 1.24 7.26 1.13

deducted (CN￥/share)

Weighted average return on net

14.9814.670.3115.44

assets (%)

Weighted average return on net

assets with non-recurring profits and 14.38 14.37 0.01 14.89

losses deducted (%)

Explanation of the Company's main accounting data and financial indicators for the previous three years

at the end of the Reporting Period

"□ Applicable" "√ Not applicable"

7/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

VIII. Differences in accounting data under domestic and foreign accounting standards

(i)Differences in net profits and net assets attributable to shareholders of the listed Company in the

financial statements disclosed under international accounting standards and those disclosed under

domestic accounting standards

"□ Applicable" "√ Not applicable"

(ii) Differences in net profits and net assets attributable to shareholders of the listed Company in the

financial statements disclosed under overseas accounting standards and those disclosed under

domestic accounting standards

"□ Applicable" "√ Not applicable"

(iii) Explanation of differences in overseas and domestic accounting standards:

"□ Applicable" "√ Not applicable"

IX. Quarter-based main financial indicators in 2025

Unit:CN￥ Currency: CNY

Quarter 1 Quarter 2 Quarter 3 Quarter 4

(Jan–Mar) (Apr–Jun) (Jul–Sept) (Oct–Dec)

Operating revenue 6009043521.27 5712776113.19 5564080298.18 7147265264.86

Net profit attributable

to shareholders of the 449493528.80 430552354.40 344509955.35 453926026.46

listed company

Net profits

attributable to

shareholders of the

listed Company after 437985342.56 419131956.61 330805625.94 423639310.15

deduction of non-

recurring profits and

losses

Net cash flow from

1114385691.58455280096.61697545229.621091236996.60

operating activities

Description of differences between quarterly data and periodic report data disclosed

"□ Applicable" "√ Not applicable"

X. Non-recurring profit and loss items and amounts

"√ Applicable" "□ Not applicable"

Unit:CN￥ Currency: CNY

Note (if

Non-recurring profit and loss items Amount in 2025 Amount in 2024 Amount in 2023

applicable)

Profit and loss on disposal of non-

current assets (including the write-

66576882.1147641839.3429092610.09

off of provision for impairment of

assets)

Governmental subsidies included in

the current profits and losses

(excluding the governmental

subsidies closely relating to the 24326527.82 14930754.09 44930209.02

normal business operations of the

Company conforming to national

policies and regulations enjoyed in

8/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

accordance with a certain standard

and having a lasting impact on the

profits and losses of the Company)

Profits and losses from changes in

fair value arising from financial

assets and financial liabilities held

by non-financial institutions and

profits and losses from the disposal

13074.67

of financial assets and financial

liabilities except for the effective

hedging business related to the

normal business operations of the

Company

Fund possession cost collected from

the non-financial institution and

included in the current profits and

losses

Profits and losses from entrusting

others to invest or manage assets

Profits and losses from external

entrusted loans

Losses of various assets made due to

force majeure factors such as

natural disasters

Reversal of impairment reserves for

the receivables under an independent

impairment test

Gains arising from the identifiable

net assets at fair value of the

investee at the time of acquisition

when the cost of acquiring

investments in subsidiaries joint

ventures and associates is less than

the investment amount

The current net profits and losses of

a subsidiary from the beginning of

the Reporting Period to the

combination date under common

control.Profits and losses from non-

monetary asset exchange

Profits and losses from debt

restructuring

Non-recurring expenses incurred by

the enterprise due to the cessation of

business activities such as employee

relocation expenses

One-time impact on the current

profits and losses due to the

adjustments of tax accounting and

other laws and regulations

Non-recurring share-based payment

expenses due to cancellation or

modification of equity incentive plan

For cash-settled share-based

payments profits and losses arising

9/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

from changes in fair value of

employee compensation payable

after the vesting date

Profits and losses arising from

changes in fair value for investment

real estate measured using the fair

value model for subsequent

measurement

Profits from transactions where the

transaction price has an excess or

deficit compared to fair value

Profits and losses arising from

contingent items unrelated to the

Company's normal business

operations

Revenue earned from entrusted

operations

Other non-operating revenue and

expenditure in addition to those 5613329.26 -17587789.91 -5060038.31

mentioned above

Other profit and loss items

conforming to the definition of non-

recurring profits and losses

Less: Income tax effect 20833389.63 10257785.41 16885907.38

Amount affected by minority

8763719.813231645.571617512.91

interests (after tax)

Total 66919629.75 31495372.54 50472435.18

The Company shall provide explanations for defining profits and losses not listed in the Explanatory

Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public -

Non-recurring Profits and Losses as non-recurring profit and loss items with significant amounts and

defining non-recurring profit and loss items listed in this document as recurring profit and loss items."√ Applicable" "□ Not applicable"

Unit:CN￥ Currency: CNY

Item Amount involved Reason

Investment income from financial instruments Related to daily business

110605264.17

during the holding period activities

XI. Net profit after deducting the impact of share-based payment for companies with equity

incentive plans and employee stock ownership plans

"□ Applicable" "√ Not applicable"

XII. Items measured by fair value

"√ Applicable" "□ Not applicable"

Unit: CN￥Currency: CNY

Amount of impact on

Project name Opening balance Closing balance Current change

the current profit

Investment in other

339971600.00-339971600.0013029683.18

equity instruments

Trading financial

4406809254.465853790200.511446980946.05110605264.17

assets

Receivables 29445006.56 23916796.03 -5528210.53

10/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

financing

Total 4776225861.02 5877706996.54 1101481135.52 123634947.35

XIII. Others

"□ Applicable" "√ Not applicable"

Section III Management Discussion and Analysis

I. Main business of the Company during the Reporting Period

During the Reporting Period guided by the annual business plan and under the leadership of the

Board of Directors and management the Company actively drove operational excellence across the

organization. Key initiatives included customer-centric upgrades to personnel goods and premises store

network optimization targeted staffing adjustments and cost reduction and efficiency enhancement

measures. These efforts delivered sustained annual operating performance growth. On the supply chain

front the Company improved its differentiated product offering and enhanced product competitiveness

through stricter cost control channel optimization and intelligent supply chain upgrades. Leveraging

memberships big data internet healthcare and health management the development of an ecosystem for

pharmaceutical new retail accelerated the integration of online and offline channels and matured new

business models. By establishing comprehensive digital linkages spanning customers products

operations and marketing the Company progressively shifted its value proposition from product

management to customer management. Organizational efficiency and cultural soft power were further

strengthened through structural optimization and a differentiated blended talent development model that

combines online and offline training embedding corporate culture into learning programs.

1. Positive growth in operating performance

During the Reporting Period the Company achieved positive growth in operating revenue and

operating profit. The Company generated operating revenue of CN￥24433.1652 million representing a

year-on-year growth of 1.54%. The net profit attributable to shareholders of the listed company reached

CN￥1678.4819 million registering a year-on-year increase of 9.81%. The net profit attributable to

shareholders of the listed company after deduction of non-recurring profits and losses was CN￥1611.5622

million representing a year-on-year growth of 7.65%. The weighted average return on net assets was

14.98% with earnings per share of CN￥1.38. As of December 31 2025 the Company's total assets

amounted to CN￥27451.924 million representing a decrease of 1.87% compared to CN￥27974.737

million at the end of the previous year. The equity attributable to owners of the parent company totaled

CN￥11634.2874 million indicating an increase of 8.47% compared to CN￥10725.687 million at the end

of the previous year.

2. Store expansion

During the Reporting Period in response to evolving market conditions the Company adhered to its

"regional focus and steady expansion" strategy while making timely adjustments to its expansion plan. A

total of 694 new stores were added during the year comprising 193 self-built stores and 501 franchised

stores. In parallel 547 stores were closed as part of ongoing network optimization. As of the end of the

11/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

Reporting Period the total number of the Company's stores is 14831 (including 4313 franchise stores)

registering a net increase of 147 stores compared to the end of the previous period.

3. Developing a differentiated product mix and driving supply chain optimization

Throughout the Reporting Period the Company further refined its product structure through a triple

assessment system evaluating product quality efficacy and cost-effectiveness. By proactively submitting

products for inspection evaluating their efficacy and assessing cost-effectiveness the Company selected

high-quality manufacturers as core suppliers. Progress was made on cost control channel optimization

and the establishment of strategic partnerships with suppliers. The product assortment strategy evolved

from a passive to a proactive approach resulting in a more market-responsive and differentiated product

mix. Over the past year focusing on product structure and supply chain optimization the application of

digital and intelligent tools has continued to improve product availability and supply chain management

efficiency.

4. Operating the new pharmaceutical retail system efficiently

During the Reporting Period the Company deepened the integration of health management resources

including membership management big data analytics and internet medical care. Leveraging its offline

store network and member base the Company advanced the development of an ecosystem for

pharmaceutical new retail covering omni-channel member management integrated online and offline

medical services and full-lifecycle health management. These efforts enabled digital upgrades in chronic

disease management and the optimization of online consultation services. By the end of the Reporting

Period the Company operated over 10000 O2O direct-sale stores and more than 600 24-hour delivery

stores. Key performance indicators for the new retail business including order picking efficiency delivery

speed order fulfillment rate as well as per-capita per-brand and per-square-meter efficiency all showed

continuous improvement. For the full year the Company achieved online sales revenue of CN￥2.993

billion (tax included) of which O2O contributed CN￥2.094 billion (tax included) and B2C contributed

CN￥0.899 billion (tax included).

5. Undertaking hospital prescription outflow (from public hospitals into pharmaceutical retail channel)

online and offline

During the Reporting Period the Company actively explored new models for fulfilling hospital

prescription outflows through both online and offline channels.Offline leveraging its hospital-adjacent stores and focusing on patient needs the Company

strategically expanded its network of DTP specialized pharmacies "dual-channel" government BMI

designated outlets and pharmacies designated for special chronic disease insurance and outpatient pooling.This improved patient access to routine prescription drugs and new specialty drugs. Patient services were

enhanced through filing professional delivery follow-up and regular online and offline patient education.The Company also deepened collaboration with pharmaceutical manufacturers to actively introduce

nationally negotiated medical insurance drugs. As of the end of the Reporting Period the Company

operated 688 hospital-adjacent stores (within 100 m of Class 2A or higher hospitals) and 316 DTP

12/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

specialized pharmacies including 251 stores with dual-channel medical insurance access. The Company

has established deep partnerships with nearly 200 specialized prescription drug suppliers.Online the electronic prescription transfer service was upgraded with a strategic focus on building

a closed-loop "physician-patient-drug-insurance" service system for both medical insurance and

commercial insurance patients. Digital upgrades were implemented to optimize the prescription service

platform. The Company actively connected with hospital systems including those of internet hospitals to

enhance data operation capacity and system stability. A prescription quality control service system was

established creating rule bases and databases precisely tailored to medical treatment medical insurance

and commercial insurance requirements. Fulfillment capabilities continued to improve. The Company

built a three-tier fulfillment service network comprising provincial and central city logistics centers

central store warehouses and hospital-adjacent stores alongside an integrated B2C O2O and third-party

logistics system. The business scope expanded to link with health commissions medical insurance

authorities commercial insurers hospitals and third-party internet hospital platforms. The Company

placed particular emphasis on incubating commercial insurance benefit businesses including auto

insurance and employee benefit programs achieving notable progress. To date the Company has

connected to over 10 provincial and municipal medical insurance and health commission prescription

transfer platforms and has established direct or indirect connections to nearly 200 hospitals (including 95

internet hospitals). In addition the Company has built 145 self-owned clinics (including 10 TCM clinics)

and over 10 self-owned internet hospitals (including those under construction).

6. Making remarkable progress in digital transformation

The Company has leveraged digital and intelligent technologies to transform traditional operations

comprehensively building a digital operational system and an intelligent logistics and distribution network.During the Reporting Period the Company focused on digitalizing core capabilities in marketing planning

product supply chain membership operations employee efficiency franchise expansion and healthcare

insurance services. Management efficiency was enhanced across human resources finance logistics and

operations. After years of persistent evolutionary iterations the Company has essentially completed the

construction of six major middle-platform systems including operations product finance and human

resources centers. The number of stores served per employee enabled by digitalization continues to

increase reflecting a significant enhancement in system support capabilities.

7. Enhancing employee professional competence through refined training systems

Professional competence is a key driver of the Company's organic store growth and profitability

improvement and represents a core competitive advantage underpinning its industry leadership. During

the Reporting Period the Company advanced its training initiatives by developing and standardizing

training materials establishing teams of full-time and part-time store instructors setting up training bases

for new employees and reserve store managers and continuing the Management Trainee program

supported by a range of online and offline training models and credit-based assessments. In 2025 the

Company updated its training courseware to cover service concepts behavioral habits professional skills

and pharmaceutical knowledge. A total of 34232 training sessions were conducted with an average of

13/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

119.82 training hours per employee. Training was provided to various levels including middle and senior

management core staff base instructors full-time lecturers management trainees district directors store

managers reserve store managers and new employees. In 2025 the Company developed or updated

several key training handbooks including the Handbook for Pre-Stage Training for Reserve Store

Managers the Handbook for Store Manager Base Training and the Handbook for New Store Manager

Guidance. A new Handbook for Reserve District Director Training and Coaching was also developed to

support middle management training. These were complemented by the development of question banks

and training on key products aligned with the "personnel goods and premises" framework. In 2025 the

Company organized employee participation in the national licensed pharmacist qualification examination

resulting in 1047 newly certified in-house licensed pharmacists. As of the end of the Reporting Period

the Company employed 13240 licensed pharmacists (excluding employees of franchised stores).Additionally the Company continued to strengthen partnerships with universities establishing Yifeng

Class school-enterprise collaboration programs and creating internship and talent cultivation bases

thereby securing a robust pipeline of professional talent to support future development.Explanation for new material non-core businesses added during the Reporting Period

"□ Applicable" "√ Not applicable"

II. Industry of the Company during the Reporting Period

(i) Industry overview

During the Reporting Period rising living standards and evolving consumption patterns among

Chinese residents drove steady growth in healthcare demand. Supported by policy reforms demographic

shifts and increased health awareness the social value of the pharmaceutical retail industry continued to

strengthen. Innovationdriven development progressed steadily and compliance management systems

became more robust. Following a prolonged expansion cycle the pharmaceutical retail industry has

entered a new phase transitioning from scaledriven growth to highquality development. As healthcare

system reforms deepen the institutional framework supporting the separation of prescribing and

dispensing as well as prescription outflow has been further reinforced. Retail pharmacies have grown

increasingly prominent as channels in the outofhospital pharmaceutical market and as community health

access points. Agingrelated chronic disease management demand continues to release structural customer

flows to pharmacies. Meanwhile internet technology and artificial intelligence are accelerating the

maturation of the "pharmaceutical new retail" model making onlineoffline integration an industry

hallmark. In addition significant changes in the policy environment macroeconomic conditions and

competitive landscape are accelerating the industry's transition toward standardized specialized and

highquality development.I. Accelerated aging population and heightened health awareness establish longterm industry

growth fundamentals.According to official statistics the proportion of China's population aged 60 and above rose from

14.3% in 2012 to 22.5% in 2025. With an aging population and the younger onset of chronic diseases the

14/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

number of disabled individuals is gradually increasing sustaining demand for chronic disease care. In

response the state has introduced longterm care insurance shifting elderly care from a homebased to a

socialbased model. The China Research Center on Aging estimates the current scale of China's silver

economy at approximately CN￥7 trillion with the potential to reach CN￥30 trillion by 2035. The advent

of an aging society creates sustained demand for chronic disease management clarifying the longterm

outlook for healthcare services. In this context pharmacies—as key community health service points—

have become more prominent in terms of professionalism and trustworthiness. According to the National

Bureau of Statistics per capita healthcare expenditure in 2025 was CN￥2573 an increase of 1.0%

yearonyear representing 8.7% of per capita consumer spending.Per Capita Healthcare Expenditure of Residents 2015–2024

Per capita healthcare expenditure (CN￥) Growth rate (YoY)

Data Source: National Bureau of Statistics

II. Shifting from scale expansion to highquality development – chain store penetration rate

and concentration continue to rise.During the Reporting Period driven by an aging population systemic policy restructuring and

accelerated technological iteration the pharmaceutical retail industry pivoted from scale expansion to

highquality development. Industry consolidation accelerated with chain store penetration rates and

market concentration continuing to increase.Industry data shows that the chain store penetration rate of retail pharmacies rose from 50.5% in 2017

to 57.6% in 2024. However regional disparities remain significant: the rate exceeds 70% in eastern coastal

areas but remains below 52% in central and western regions. In 2024 direct-store sales of the top 100

retail pharmacy enterprises accounted for 59.7% of the national pharmaceutical retail market with

concentration among top-tier players steadily increasing over the past decade. The top 10 enterprises

accounted for approximately 33.4% of total national retail sales. By comparison the top three pharmacy

chains in the United States have long held over 85% of the market while the top 10 drugstore chains in

Japan command approximately 73.7% market share. These figures indicate considerable room for

improvement in both chain store penetration rate and market concentration within China's pharmacy sector.

15/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

Proportion of Top 10 and Top 100 Companies in China's Pharmacy Industry (2016–2024) –

by Sales Value

Proportion of top Proportion of top 100

10 pharmacies pharmacies

Data Source: China Drug Store

National Pharmacy Chain Store Penetration Rate (2017–2024)

National pharmacy chain

store penetration rate

Source: Sinohealth CMH

III. Implementation of medical insurance electronic prescriptions accelerates prescription

outflow and enhances the channel value of retail pharmacies.According to the Notice of the National Healthcare Security Administration Office on Standardizing

the Management of Medical Insurance Drug Prescriptions for External Distribution (YBBH [2024] No.

86) effective January 1 2025 designated retail pharmacies equipped to handle "dual-channel" drugs must

transfer prescriptions for these drugs through the electronic prescription center and will no longer accept

paper prescriptions. Leveraging the unified national medical insurance information platform local

authorities are accelerating the deployment of electronic prescription center functions. These efforts

connect medical insurance agencies designated medical institutions and designated retail pharmacies to

ensure seamless electronic prescription transfer. In 2025 the total terminal market size for drugs in China

16/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

reached CN￥2003.3 billion representing a year-on-year decrease of 1.4%. Over the long term the

terminal structure of China's drug market is gradually evolving toward a diversified "four-wheel drive"

model comprising hospitals primary healthcare institutions retail pharmacies and e-commerce channels.Hospitals continue to hold the largest market share although their share has shown a slow decline in recent

years. Primary healthcare institutions have steadily increased their share supported by outpatient pooling

policies and favorable medical insurance reimbursement ratios. Retail pharmacies as the most important

out-of-hospital channel have seen their share increase steadily.Pharmaceutical Market – Proportion of Sales by Terminal Channel Nationwide (CN￥100

million)

Healthcare reforms Central First year of

including separation of ized the pandemic Scale (CN￥100

prescribing and procure

Hospital market (including private hospitals) ment million)

dispensing and medical

Primary healthcare insurance cost control

Retail pharmacies (including O2O) during the 13

th Five-Year

Plan period

E-commerce B2C and internet hospitals

Proportion of Prescription Drugs in Hospital vs. Out-of-Hospital Markets: China Japan and

the USA

Out-of-hospital

China (2024) Japan (2023) USA (2022)

Source: Sinohealth CMH

IV. Compliance operations become industry mainstream delivering policy dividends to leading

enterprises.Since 2025 a series of major policies have been introduced and implemented across the

pharmaceutical retail industry. The sector is undergoing a guided transformation and upgrade through

enhanced regulatory oversight and technological empowerment with online and offline channels

17/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

gradually moving toward orderly development. Leading pharmacy chains that prioritize compliance and

standardized governance stand to benefit from a supportive policy environment conducive to long-term

growth.In March 2025 four departments including the National Healthcare Security Administration jointly

issued the Notice on Strengthening the Collection and Application of Drug Traceability Codes in the

Medical Insurance and WorkRelated Injury Insurance Fields. The notice stipulates that effective July 1

2025 scanning of traceability codes is required before medical insurance fund settlement for drug sales.

The National Healthcare Security Administration will build relevant functions on the unified national

medical insurance information platform and provide public services. Insured individuals will be

encouraged to query traceability codes and bigdata supervision models centered on drug traceability

codes will be developed to strictly crack down on illegal activities such as drug swapping or reselling.In April 2025 twelve departments including the Ministry of Commerce the National Health

Commission and the National Medical Products Administration jointly issued the Action Plan for

Promoting Healthy Consumption which is the first systematic plan for developing the health consumption

sector. The plan positions retail pharmacies as "core hubs for health promotion" and guides them to expand

functions such as health promotion and nutritional support. It also encourages local authorities to include

eligible medical services in local medical insurance payment scopes following due procedures; supports

innovation in "internet+" medical service models leveraging the unified national medical insurance

information platform to deepen the application of electronic prescriptions and facilitate smooth

prescription transfer between designated medical institutions and pharmacies thus meeting demand for

convenient medical services; and leverages the expertise of licensed pharmacists in retail pharmacies to

conduct health knowledge consultations and promotions on rational drug use and chronic disease

management thereby promoting healthy consumption concepts.In September 2025 the National Medical Products Administration issued the Compliance Guidelines

for Online Retail of Prescription Drugs (Draft for Comments) mandating fullprocess traceability and

closedloop management across business entity qualifications professional staffing prescription

verification and marketing activities. This signals that online retail of prescription drugs is formally

entering a new phase of "strong regulation and compliance focus" following its earlier rapid growth.In January 2026 nine departments including the Ministry of Commerce and the National Health

Commission jointly issued the Opinions on Promoting HighQuality Development of the Pharmaceutical

Retail Industry proposing 18 measures across five areas. The opinions explicitly promote the

transformation of pharmacies from traditional "drug sales terminals" into "community health stations" and

encourage retail pharmacies to legally pursue M&As and develop integrated wholesaleretail models. The

issuance of nationallevel policies for highquality industry development promotes the specialization

consolidation digitalization and standardization of the pharmaceutical retail industry providing clear

policy guidance for industry transformation and upgrading.In January 2026 the Regulations for Implementation of the Drug Administration Law of the People's

Republic of China was revised further refining the management system for online drug sales

18/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

strengthening the responsibilities of thirdparty platform providers for online drug transactions and clearly

specifying the scope of drugs prohibited from online sale. The revisions also encourage prescription

outflow through digital means.In February 2026 the State Administration for Market Regulation issued the Antitrust Compliance

Guidelines for Internet Platforms specifying four main types of monopoly risks and drawing clear red

lines for platform operators. The guidelines also identify new monopoly risks in eight scenarios including

algorithmic collusion between platforms organizing or assisting platform merchants in reaching

monopoly agreements unfairly high platform prices selling below cost blocking or shielding "choose

one of two" practices "lowest price across all platforms" requirements and platform differential treatment.In summary driven by policy and technological empowerment the pharmaceutical retail industry

has undergone a profound transformation from scale expansion to existing market competition. The era of

universal growth for pharmacies is over. Policy supervision has tightened comprehensively significantly

raising compliance standards. The profit model is being rapidly restructured shifting from selling drugs

to providing services and managing health. Going forward enterprises will need to build their core

competitiveness and long-term growth potential through digital transformation supply chain optimization

service innovation and ESG value creation all while maintaining regulatory compliance.Periodic industrial characteristics:

The pharmaceutical distribution industry is a critical sector vital to national and public welfare. Since

pharmaceutical consumption addresses basic social needs it remains relatively unaffected by

macroeconomic fluctuations demonstrating minimal economic cyclicality. Only a select few products

exhibit seasonal variations primarily due to extreme weather conditions during the summer and winter

months. Compared to other sectors within general retail the pharmaceutical retail industry exhibits weaker

economic cyclicality. However due to the time-sensitivity convenience consumer habits and regional

variations associated with pharmaceuticals the industry displays distinct regional characteristics.Enterprises boasting extensive store networks standardized management systematic operations and

robust cross-regional replication capabilities enjoy significant competitive advantages in the market.Position of the Company in the industry:

The Company's core operations span multiple provinces and municipalities: Hunan Hubei Shanghai

Jiangsu Jiangxi Zhejiang Guangdong Hebei Beijing and Tianjin. Through years of development the

Company has established a substantial regional competitive edge. The Company has been successively

recognized as one of China's Top 100 Valuable Main Board Listed Companies one of China's Top 500 Most

Valuable Brands one of the Hurun China Top 500 Most Valuable Brands and a top 100 enterprise on the China

Drug Store Value List. It has also been honored as the Most Investable Enterprise the Pharmaceutical Retail

Profitability Champion and ranked first in China's Top 100 Pharmaceutical Retail Comprehensive

Competitiveness List. In 2025 the Company was named among China's Top 500 Most Valuable Brands by

GYBrand and achieved an MSCI ESG Rating of AAA. Since its listing it has been awarded a Grade A rating

for information disclosure by the Shanghai Stock Exchange for nine consecutive years.

19/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

III. Discussion and analysis of the Company's operations

(i) Overview of main business

The Company is one of the leading chain retail enterprises in the domestic pharmaceutical sector

primarily engaged in the retail of pharmaceuticals health products medical devices and other health-

related daily convenience items. Its subsidiary Yifeng Pharmaceutical acts as the internal procurement

platform for the Company managing internal goods distribution franchise distribution and a modest

amount of external pharmaceutical distribution. Another subsidiary Hengxiutang Pharmaceuticals

Company focuses on the R&D and production of prepared slices of Chinese crude drugs mainly to satisfy

the Company's internal needs.During the Reporting Period no significant changes occurred in the Company's main business.(ii) Main operating modes

The Company's main operating modes include product procurement logistics distribution warehouse

management and store sales. It is shown as follows:

Customer

Retail

Execution of approved

Store price Store Management Department

Product demand Distribution

Pricing of products via centralized Pricing of products via

Client Wholesale Distribution centers procurement localized purchasing

Manufacturer/ Subsidiary's Product

Wholesaler Product Center Department

Centralized procurement order Localized procurement order

Yifeng Pharmacy's Centralized Subsidiary's Product

Product Department procurement Department

1. Procurement mode

The Company has set up a Product Center responsible for aggregating the demand for products

purchased by all the stores in a centralized manner coordinating subsidiaries' procurement plans and

formulating category assortment plans. The subsidiary's Product Department is responsible for

aggregating the procurement requirements of all the Company's stores submitting centralized

procurement plans to the Company's Product Center managing localized purchasing needs and executing

procurement. After identifying the demands of stores product departments at all levels conduct product

evaluation price inquiries price comparisons negotiations and price finalization. They also communicate

and discuss with suppliers to finalize procurement contracts.The Company's procurement process is as follows:

Quality managementYifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

Seeking suppliers Non-first-purchased

Non-first-

Approval by

Localized procurement category cooperation supplier the head of Negotiation with Execution of Formulation of

by subsidiaries Product suppliers contracts procurement plan

Department

First-purchased First-purchased

category category of first-

First-operated cooperation

Approval by

supplier Quality Control Determination of supply Department

suppliers

Non-first-cooperation

Centralized Non-first-purchased

Approval by the supplier

procurement by category Negotiation with Execution of Formulation of head of Drug

Yifeng Pharmacy Product suppliers contracts procurement plan

Department

First-purchased category First-purchased Approval by

category of first- Drug Quality

cooperation Control

supplier Department

Approval by Approval by Approval by Approval by Approval by

product product planner product supervisor / Vice quality supervisor

evaluator supervisor President

2. Warehouse management and logistics distribution

The Company has established modern logistics centers in Hunan Hubei Jiangsu Shanghai Jiangxi

Guangdong and Hebei. Currently the Company boasts advanced equipment technologies and business

management models in the logistics industry including stereoscopic warehouses automated conveyor

systems automated sorting systems AGV for order picking Miniload for intelligent automatic

replenishment electronic labeling systems multi-level shuttles crossbelts robotic arms wireless RF

picking acceptance systems and intelligent consolidation systems. These capabilities provide enhanced

support for digital operations of Yifeng's supply chain. All products in the stores owned by the Company

are independently distributed by the logistics centers of the Company or its subsidiaries. The Company's

robust distribution capabilities provide strong logistical support for its rapid expansion.The logistics distribution process is as follows:

Supplier Delivery Product Center Order check Acceptance Warehouse

Procurement and warehousing process

Acceptance Feedback on Distribution Outbound

of receipt improvement center review

Store distribution

process

POS system SAP system Quantity WMS system Loading &

Store Inventory Sorting &

Adjustment transportation clearance distribution

Product Product

Department selection

3. Sales mode

(1) Retail

As of December 31 2025 the Company owns a total of 14831 chain drugstores (including 4313

franchise stores) across multiple provinces and municipalities in China including Hunan Hubei Shanghai

Jiangsu Jiangxi Zhejiang Guangdong Hebei Beijing and Tianjin. These stores offer customers a wide

range of products including Western and Chinese patent medicine prepared slices of Chinese crude drugs

Determination of purchased

categoriesYifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

medical devices health supplements personal care products and daily convenience items related to health.The Company centrally manages procurement distribution and pricing guidance for store

merchandise. Its operating system oversees the entire process of goods inflow sales and inventory

management. Customers can make purchases using cash UnionPay cards government BMI cards and

various online payment methods. All sales data is seamlessly integrated into the Company's SAP system.

(2) Franchise delivery and distribution business

Franchise distribution involves purchasing products from suppliers and then distributing them to the

franchised stores of the Company and its subsidiaries. The distribution business primarily involves selling

certain agency products to third parties.

(3) Pharmaceutical e-commerce

The Company's pharmaceutical e-commerce division leverages CRM and big data with innovations

in telemedicine and prescription circulation creating an integrated online and offline new retail model.The online sales platform primarily utilizes existing physical stores with customers placing orders online

and fulfillment handled by third-party logistics providers company-owned distribution centers or

physical stores.IV. Core competitiveness analysis during the Reporting Period

"√ Applicable" "□ Not applicable"

1. Development strategy of regional focus and steady expansion

During the Reporting Period the Company adhered to the development strategy of "regional focus

and steady expansion" and the operational policy of "key penetration and intensive marketing". By

optimizing the store networks fostering a positive brand image enhancing professional service

capabilities ensuring standardized operations and management continuously optimizing the supply chain

and product portfolio and upgrading the membership management system the Company has kept

enhancing customer satisfaction and repeat purchase rates leading to a sustained growth in store sales

revenue. While leveraging regional competitive advantages the Company has also improved its

bargaining power through the ever-growing scale and reduced logistics and operational costs. This has

ensured the continuous growth of profitability.The strategy of "regional focus" has enabled the Company to consistently achieve profit levels

surpassing the industry average and significantly increase its sales and profits. As of December 31 2025

the Company operated 14831 chain pharmacies (including 4313 franchise stores) across multiple

provinces and municipalities: Hunan Hubei Shanghai Jiangsu Jiangxi Zhejiang Guangdong Hebei

Beijing and Tianjin. Operating revenue and net profit attributable to shareholders of the listed company

increased by 1.54% and 9.81% year-on-year respectively.

2. An efficient and agile operating system and outstanding cross-province operations and chain

replication capabilities

The Company is one of the few companies in the industry whose major provincial subsidiaries are

all profitable. It has significant advantages in cross-regional store management replication and cultural

heritage. The Company has always prioritized refined standardized and systematic operations and

22/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

management. It has established a digital connected and intelligent system management platform that

covers six core operation systems: new store expansion store operations merchandise management

information services customer satisfaction and performance assessment. With digital business handling

and the IT-enabled operational process the Company has created an efficient and agile operating system

which effectively supports it in cross-regional operations rapid and efficient replication and industry

M&A and integration.During the Reporting Period the Company has witnessed continued improvements in its business

operations management efficiency and profitability through organizational structure and store network

optimization business process innovation as well as business development empowered by digitalization.Rapid and efficient chain replication and industry consolidation capabilities have rewarded the Company

with an increasingly mature store network and enhanced competitive advantages.

3. Mature proprietary brand product model and comprehensive training system

During the Reporting Period the Company continued to advance initiatives in product cost control

channel optimization and intelligent supply chain system upgrades. It also focused on developing and

refining a strategically-focused product portfolio including own-brand products exclusive varieties and

co-developed products with manufacturers. By shifting its product assortment from a passive to a proactive

approach the Company provides customers with reliable effective costefficient and wellcontrolled

channel products. This strategy has created a productbased competitive barrier relative to peers and

enabled differentiated competition.By strengthening specialized employee service training and conducting customer satisfaction

assessments the Company has achieved a balance between profit growth and customer satisfaction. Over

95% of the frontline employees in its stores are graduates in medicine and pharmacy. The Company has

established a robust employee training and talent development system. During the Reporting Period the

Company continued to enhance its professional credit-based curriculum and corporate university

(comprising a retail academy and business school). These institutions encompass a broad spectrum from

talent cultivation to corporate management research thus forging a sustainable human resources

framework. By partnering with educational institutions the Company has deepened the integration of

industry and academia standardized training materials assembled dedicated and part-time instructor

teams at stores and established training bases for new employees and reserve store managers. This

initiative has propelled the talent pipeline construction and various training models that blend online and

offline elements with a credit-based evaluation system forward. As the Company rapidly grows the

comprehensive employee training system ensures the ongoing improvement of employees' professional

service capabilities and meets its increasing demand for human resources thereby serving as a long-term

driver for endogenous growth.

4. Intelligent membership service system

The Company places customer health value at the core and is committed to building a membership

service system that integrates refined operations intelligent outreach and professional services. Through

data-driven and technological innovation the Company has extended its services from pure drug sales to

23/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

full-lifecycle health management. (i) Precision member operation strategy: Moving away from traditional

mass-market operations the Company has achieved precise member identification through tiered and

classified management. Big data technology is used to conduct multi-dimensional customer profiling

analysis. Based on consumption behavior health data and lifecycle stage a scientific member

classification and tiering model has been established. Differentiated benefits and communication strategies

are matched to members at different tiers ensuring precise resource allocation and enhancing marketing

effectiveness. (ii) Comprehensive health service system: The Company has deepened full-cycle chronic

disease management transitioning chronic disease services from basic testing to in-depth management. A

service closed-loop of "filing – follow-up – tracking – evaluation – re-examination/verification" has been

built leveraging free in-store health testing and professional services from all employees. Through

intelligent backend task assignment to frontline employees the Company provides guidance on

medication adherence dietary and exercise advice and psychological counseling for chronic disease

members achieving health intervention and management throughout their lifecycle. In addition the

Company has strengthened the professional value of its pharmacist teams building deep connections

between members and pharmacists through online consultations and community Q&A. Stores serve as

health stations routinely conducting free health tests and patient education activities. This allows members

to experience professional service while enhancing their emotional identification and professional trust in

the Company. (iii) Intelligent and efficient digital support system: The Company empowers its service

front-end by enabling employees online. The Employee Online mini-program fully digitizes store

management marketing execution data querying and performance compensation. Leveraging advanced

information and internet technology the Company has built an integrated intelligent platform that

combines member information management user health records pharmacist online consultation and

online/offline integrated marketing. This platform consistently upgrades in-store customer experience and

operational efficiency.As of the end of the Reporting Period the Company had a total of 116 million registered members

with member sales accounting for 83.79% of total sales. The Company's WeChat official account had over

17.25 million followers.

5. "Fleet-type" store layout and unique location selection model

To cater to the population market demand and consumer characteristics of different regions the

Company has established a network of stores covering different cities and business districts as well as

formed a "fleet-type" store layout consisting of flagship stores regional central stores medium-sized

community stores and small-sized community stores. Based on years of site selection experience and big

data analysis the Company has developed a comprehensive "business district positioning method" for

store location selection. This involves analyzing the population population density and consumer

spending power and habits in new cities pinpointing potential business districts determining store types

and location ranges for prospective stores based on specific district characteristics and employing a

sophisticated store selection model a consumer flow testing system and a sales forecasting model to

finalize precise locations. By promoting and implementing the models above the Company's capabilities

24/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

in selecting new store locations and ensuring the quality of these new stores consistently improve and its

brand penetration continues to strengthen.

6. Advanced digital operations management and efficient logistics distribution system

Digital management tools are fundamental to effective operations in pharmaceutical retail enterprises

and crucial for fulfilling customer commitments. The Company has established a robust digital technology

R&D team dedicated to creating bespoke digital and intelligent systems tailored to the Company's

operational needs. These systems empower the Company's operational management externally supporting

store operations POS transactions medical insurance services public domain platforms and regulatory

compliance. Internally they integrate various functional modules including human resources finance and

logistics ensuring streamlined internal operations and process optimization while facilitating rapid and

stable business growth.The Company has established and continues to upgrade seven state-of-the-art logistics centers across

Hunan Hubei Jiangsu Shanghai Jiangxi Guangdong and Hebei complemented by ten urban

distribution centers in cities including Shaoguan Huai'an and Suqian. This network enables systematic

online management of 20 logistics centers covering production retail and e-commerce operations. By

continuously advancing visualization and intelligent management in warehousing and logistics the

Company has implemented cutting-edge equipment and technologies. These include automated conveyor

systems sorting mechanisms storage and retrieval systems AGV goods-to-person picking solutions

Miniload intelligent replenishment systems cross-belt sorting systems electronic labeling wireless RF

picking and receiving systems smart consolidation and dispatching platforms and comprehensive real-

time visual monitoring and control systems. These advancements have significantly enhanced operational

efficiency and system integration achieving an automated logistics network that closely aligns with

evolving business requirements.

7. Outstanding corporate culture and mentor-based talent team

Through the dual drivers of cultural guidance and talent motivation the Company has built a

professional team with high identification execution and cohesion injecting sustainable momentum into

enterprise development. The Company's core values—"customer first result-oriented innovation and lean

diligence and pragmatism responsibility and collaboration growth and care"—are fully integrated into

employee training courses talent review dimensions and KPI assessment systems. This integration makes

culture a measurable and evaluable behavioral standard fostering a team culture of simple and transparent

interpersonal dynamics accountable collaboration and efficient and pragmatic teamwork. While focusing

on customer value creation and a results-oriented approach the Company enables employees to achieve

personal growth alongside performance delivery through systematic training and empowerment realizing

the organic integration of a fulfilling work experience and pragmatic results delivery. To meet rapidly

evolving business needs the Company consistently optimizes its talent development environment and has

established a standardized system for talent selection training utilization and retention. By improving

employee career planning and building an instructive organization the Company ensures a robust talent

pipeline. Additionally the Company has introduced and deepened the application of competency models

25/266Yifeng Pharmacy Chain Co. Ltd. 2025 Annual Report

using scientific talent review mechanisms to accurately identify high-potential talent thereby meeting the

diverse talent needs of rapid corporate growth.V. Operation status during the Reporting Period

During the Reporting Period the Company maintained a steady increase in operating revenue and