Jointown Pharmaceutical Group (600998) Q4 2024 earnings summary

Executive summary

• Achieved revenue of ¥151.81 billion, up 1.11% year-over-year; net profit attributable to shareholders rose 15.33% to ¥2.51 billion.

• Operating cash flow was ¥3.08 billion, with strong year-end collections offsetting higher payments to suppliers.

• Adjusted for pandemic and seasonal effects, revenue grew 2.58% and net profit 39.88% year-over-year.

• Strategic transformation focused on new products, retail, healthcare, digitalization, and REITs, with significant investments in innovation and talent.

• Major asset securitization: successful issuance and listing of public REITs, raising ¥1.16 billion, and Pre-REITs raising ¥1.65 billion.

Financial highlights

• Revenue: ¥151.81 billion (+1.11% YoY); net profit attributable to shareholders: ¥2.51 billion (+15.33% YoY).

• Gross margin: 7.77%; basic and diluted EPS: ¥0.50 (+16.28% YoY).

• Net assets: ¥27.24 billion (+13.59% YoY); total assets: ¥102.40 billion (+10.35% YoY).

• Operating cash flow: ¥3.08 billion; cash dividend payout ratio: 50.47%.

• Non-recurring gains: ¥693.68 million, mainly from asset disposals and government grants.

Outlook and guidance

• 2025 is the final year of the three-year strategic plan, with focus on expanding new product sales to 20% of revenue and 50% of gross profit.

• Retail network to exceed 33,500 stores; healthcare alliance to surpass 2,000 clinics.

• Continued investment in digitalization, AI, and talent, aiming for further efficiency and user experience improvements.

• Ongoing REITs expansion to support asset-light operations and capital recycling.