Analysis Report on the Justification for the Plan to Issue A Shares to Specific Objects in 2026
I. Background and Purpose of the Current Private Placement
(I) Background of the Current Private Placement
With the steady increase in residents' income, deepening aging population, and growing health awareness in China, the demand for chronic disease management is expanding. Simultaneously, reforms in the medical and health system are deepening, with policies supporting optimized centralized procurement, R&D innovation, traditional Chinese medicine inheritance, and the silver economy. These changes are profoundly altering the position and competitive landscape of drug retail terminals. The combined effect of stable overall demand, structural optimization, and supply-side reforms presents a clear long-term development trend for the pharmaceutical retail industry. Chain pharmacies with scale advantages, compliance capabilities, and full-产业链 (industry chain) integration are facing favorable development opportunities.
- Long-term drivers of population aging, income growth, and health consumption upgrade create broad long-term development space for the pharmaceutical retail market.
China's population aging is accelerating. According to the National Bureau of Statistics' "Statistical Communiqué on National Economic and Social Development in 2025," as of the end of 2025, the population aged 60 and above reached 323.38 million, accounting for 23.0% of the total population, a further increase from 310.31 million at the end of 2024. Among them, the population aged 80 and above reached 35.80 million. This demographic shift provides a long-term stable demand base for pharmaceutical consumption. Furthermore, China's silver economy is projected to reach 9 trillion yuan in 2025 and exceed 30 trillion yuan by 2035, making population aging a significant opportunity for the transformation and upgrading of the pharmaceutical and health industry.
Residents' purchasing power and willingness to consume on health are both increasing. According to data from the National Bureau of Statistics, in 2025, the per capita disposable income of Chinese residents was 43,377 yuan, a year-on-year increase of 5.0%. Per capita medical and health consumption expenditure was 2,573 yuan, accounting for 8.7% of total per capita consumption expenditure, making healthcare a significant component of residents' consumption.
Supported by the aforementioned demand factors, the overall volume of China's pharmaceutical retail market has stabilized and its structure has been optimized in recent years. According to the Ministry of Commerce's "2024 Pharmaceutical Circulation Industry Operation Statistics Analysis Report," the total sales of seven major categories of pharmaceutical products nationwide in 2024 reached 29.47 trillion yuan, with drug retail sales accounting for 6.5 trillion yuan. Historically, drug retail sales have grown from 5.119 trillion yuan in 2020 to 6.5 trillion yuan in 2024, showing an overall growth trend. Data from mcn.com shows that the retail sales of physical pharmacies in China (including drugs and non-drugs) were 6.165 trillion yuan in 2025, a year-on-year decrease of 0.57%. Data from C CMH shows that the total market size of drug sales terminals in China was 20.033 trillion yuan in 2025, a year-on-year decrease of 1.4%.
In summary, driven by the long-term trends of population aging, income growth, and health consumption upgrades, the demand base for pharmaceutical consumption is stable and rigid. The industry is shifting from scale expansion to prioritizing quality and efficiency, entering a new phase of structural optimization and stable development with broad and sustainable long-term development prospects. Leading companies with scale and compliance advantages are expected to benefit from increased industry concentration.
- Multiple policy initiatives are continuously empowering and providing strong support for the upgrading and development of the pharmaceutical retail industry.
In recent years, national and local governments have introduced numerous favorable policies to guide the pharmaceutical retail industry towards specialization, intensification, digitalization, and standardization, providing clear policy basis and development direction for the construction content of this project.