Established in 2000, Jiuzhoutong is the third largest pharmaceutical commercial circulation enterprise in China after Sinopharm Holdings (hereinafter referred to as Sinopharm) and Xinshang Pharmaceutical. Due to the nationwide channel layout, Jiuzhoutong has become the only private pharmaceutical company that can compete with Sinopharm in market coverage at this stage.
On August 3rd, the national A-level logistics enterprise awarding conference was held in Changchun, and Jiuzhoutong was awarded the qualification of 5A-level logistics enterprise, becoming the first 5A-level pharmaceutical logistics enterprise in China, reaching the highest level of national standards for logistics enterprises.
On August 18, "Pharmaceutical Gome" Jiuzhoutong officially passed the IPO meeting. However, around its net profit rate is only about 1%, there are still doubts about its success.
Last year, the total sales of Jiuzhoutong reached 22 billion yuan, with total assets of more than 7 billion yuan and more than 70 subordinate enterprises. Due to the lack of state-owned background and strong financial support for state-controlled and newly added drugs, Jiuzhoutong has established a non-mainstream business model of "quick batch and quick distribution" from the beginning, which is characterized by low gross profit margin, low cost, fast inventory turnover and short account period. The industry is called "Jiuzhoutong Model".
At the beginning, Jiuzhoutong's customers were mainly drug wholesalers, drug retailers and small hospital clinics. These groups are price-sensitive and have a high demand for cash flow. Jiuzhoutong realized the primitive accumulation by the strategy of exchanging cash for cash. 1999 When the pharmaceutical circulation field was officially opened to private capital, Jiuzhoutong developed almost all private hospitals into end customers.
Just after the successful meeting of Jiuzhoutong, a research report pointed out that the "Jiuzhoutong model" can kill a bloody road in the field of medical circulation in a short time. In the long run, it is very fragile. The company's profits mainly come from manufacturers' rebates. At present, the net profit is only 1%, which is in a very passive situation. Once the manufacturer's policy changes, its profits will be lost.