Jiangyao Group

Jiangyao Group Co., Ltd. (hereinafter referred to as "Jiangyao Group" or the "Group") was founded in December 2018 and officially commenced operations in June 2020. It is a provincial state-owned holding mixed-ownership enterprise with a registered capital of 750 million yuan. The actual controller of the Group — Jiangxi Provincial State-owned Capital Operation and Holding Group Co., Ltd. (hereinafter referred to as "Jiangxi Guokong") — is the largest state-owned capital operation platform in Jiangxi Province. Jiangyao Group focuses on serving China's out-of-hospital pure sales market. Its business covers pharmaceutical production, modern intelligent logistics, third-party entrusted distribution, Internet Plus healthcare, and traditional Chinese medicine big health, among other fields. It controls 13 member enterprises, one of which is a Hong Kong-listed company (Chuangmei Pharmaceutical). It currently has more than 3,000 employees across 7 provinces, with deep coverage of more than 1,200 district and county markets and more than 200,000 active terminal customers. Jiangyao Group takes it as its mission to diligently safeguard the health of millions of people and is committed to becoming a first-class pharmaceutical and healthcare industry platform in China. In 2023, its sales scale approached 15 billion yuan, entering the top 20 in China's pharmaceutical distribution industry and becoming a pioneer in the out-of-hospital pure sales pharmaceutical commercial segment. In March 2023, Jiangyao Group completed the overall renaming of its headquarters and member enterprises; on June 30, Jiangyao Group held a strategic cooperation signing conference with IPO intermediary institutions in Sanwan Village, Yongxin, Jiangxi — a sacred site of the revolution — fully launching its IPO listing process; on March 8, 2024, Jiangyao Group's headquarters as a whole moved into Jiangyao Building, opening a new stage of the Group's development. Overall development strategy: taking out-of-hospital market pure sales pharmaceutical commerce as the entry point, comprehensively expanding pharmaceutical commerce, pharmaceutical retail, pharmaceutical e-commerce, and pharmaceutical industry, and building a pharmaceutical and healthcare industry platform with full categories, all channels, the entire industry chain, and nationwide market layout. 1. Commercial segment strategy: committed to building an out-of-hospital market pure sales pharmaceutical commercial platform that provides professional solutions for single pharmacies, small and medium-sized chains, and clinics in county and township markets nationwide. It has completed layout in seven provinces: Jiangxi, Shandong, Henan, Sichuan, Jiangsu, Guangdong, and Hebei (all except Jiangxi are major pharmaceutical provinces with trillion-yuan scale). In the next three to five years, it will achieve layout in more than 15 provinces, with annual sales scale exceeding 30 billion yuan. 2. Retail segment strategy: fully leveraging the inventory, distribution, network, customer relationships, and supply chain advantages of the nationwide out-of-hospital market pure sales pharmaceutical commercial platform, and through a combination of controlling stakes, minority stakes, and franchising, with county-level markets as the focus, to build a nationwide pharmaceutical chain platform focused on China's lower-tier markets — Jiangyaotang. In 2023, the Group took the lead in negotiating with multiple leading domestic investment institutions to establish a pharmaceutical industry fund, investing in and laying out county-level chain pharmacies nationwide through minority or controlling stakes. In the next three to five years, it will build more than 2,000 directly operated stores and more than 20,000 franchised stores. 3. E-commerce segment strategy: fully leveraging the lower-tier market existing customers and existing business advantages of the nationwide out-of-hospital market pure sales pharmaceutical commercial platform, based on an enterprise interconnection technology platform, to promote the onlineization of offline business, and build a shared B2B pharmaceutical e-commerce platform focused on China's lower-tier markets — Jiangyao Duoduo. In 2023, the Group's commercial ERP and the "Jiangyao Duoduo" Group pharmaceutical mall will be fully launched, with annual transaction volume reaching 1 billion yuan, providing offline customers with a more convenient and more affordable online transaction experience. It is expected that in the next three to five years, the Group's annual online transaction volume will exceed 10 billion yuan. 4. Industrial segment strategy: obtaining drug approvals and production bases through equity mergers and acquisitions and approval document transfers, leveraging the triple channel advantages of Jiangyao Group's commerce, retail, and e-commerce, and by establishing a professional division of labor system between production and marketing, compressing intermediate links to the greatest extent, to build a high-quality and affordable branded generic drug supply system. In 2022, it successfully launched its own industrial brand "Jiangxiaoyao," with more than 70 generic drug products launched cumulatively, achieving sales of more than 40 million yuan in 2023. In 2024, it will launch its own industrial strategy, and through mergers and acquisitions and approval purchases, strive to achieve annual sales scale exceeding 1 billion yuan in 3 to 5 years. During the "14th Five-Year Plan" period, Jiangyao Group will follow the strategic policy of "commerce occupying the track, industry creating profits, e-commerce raising market value, retail serving as reserve," practice the development path of "endogenous growth + extensional expansion," adhere to the integrated thinking of "online + offline," build a product cluster of "branded generic drugs, home medical devices, fixed-packaged decoction pieces, health food," and construct an industrial ecosystem that provides Chinese consumers with high-quality and affordable big health products. It will strive to achieve new breakthroughs on the path of innovative development in the pharmaceutical industry and make due contributions to the construction of Healthy China.