On July 17th, the application status for Kangbaijia Pharmaceutical Group Co., Ltd. (referred to as Kangbaijia) to list on the Shanghai Stock Exchange's main board was updated to "under inquiry." CITIC Securities is the sponsor for the offering, which aims to raise 809 million yuan. According to the prospectus, Kangbaijia's core business is pharmaceutical retail.
The company sells Chinese and Western patent medicines, traditional Chinese medicines, medical devices, health products, and other wellness-related goods to consumers through its directly operated stores and online platforms. It also conducts a small amount of pharmaceutical wholesale business, selling to franchisees and other entities. Throughout the reporting periods, the company's primary revenue has been derived from Chinese/Western patent medicines and traditional Chinese medicines. The combined revenue from these two product categories accounted for 87.56%, 89.15%, and 89.22% of the main business revenue in the respective periods.
The pharmaceutical retail market in China is vast, yet its structure is relatively fragmented. The industry is currently at a critical juncture of rapidly increasing chain-store ratios and market concentration. The competitive landscape is complex and intensifying, characterized by a pattern of being "nationally dispersed but regionally concentrated." From a national perspective, there remains significant room for improvement in industry consolidation, indicating substantial potential for integration. Data from the National Medical Products Administration shows that by the end of 2024, the total number of retail pharmacies nationwide reached 683,700, of which 390,000 were chain stores, representing a chain ratio of 57.04%. Despite the clear trend towards chain operations, the combined market share of the top 100 companies by sales was only 38.00%, indicating that concentration remains low compared to more mature markets.
The company has established an omni-channel sales network, with offline directly operated stores as its core foundation, online new retail as a growth engine, and wholesale business as a supplement. Its main business revenue primarily comes from the retail model, consistently accounting for over 98.50% of the total. Due to a highly dispersed customer base consisting mainly of the general consumer public, the company does not rely significantly on any single customer.
Regarding its profit model, as a cross-regional pharmaceutical retail chain, Kangbaijia's profits primarily stem from the margin between the purchase and sale prices of pharmaceutical goods. By engaging in large-scale centralized procurement from upstream suppliers and leveraging its extensive network of offline stores and online sales channels, the company sells products mainly to end consumers, thereby securing stable profit from product sales.
Financially, for the years 2023, 2024, and 2025, the company achieved operating revenues of approximately 4.748 billion yuan, 5.125 billion yuan, and 5.384 billion yuan, respectively. During the same periods, net profits were 334 million yuan, 288 million yuan, and 311 million yuan.
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