YSB (09885) third quarter revenue increased by 15% year-on-year, with the business transaction total amount in October growing by over 120%.

On the evening of November 16, YSB (09885) issued a voluntary announcement on the Hong Kong Stock Exchange, disclosing the latest performance data. The announcement showed that in the third quarter of 2025, the company's operating income increased by 15% compared to the same period last year. In October, high-margin businesses such as flagship businesses and self-owned brands saw rapid growth, with the total transaction amount of flagship products increasing by 120% year-on-year and the total transaction amount of self-owned brands increasing by over 350%, driving customer stickiness downstream and further improving the overall profit structure of the company. Since the beginning of this year, the domestic pharmaceutical retail industry has been in a deep adjustment and transformation "winter period." With rising policy compliance costs and accelerated market clearance, both upstream pharmaceutical companies and downstream retail pharmacies face challenges such as specialized services and refined operations. Against the backdrop of industry pressure, in the third quarter, YSB's revenue growth rate still maintained a double-digit increase, significantly higher than the year-on-year growth rate level in the first half of 2025 compared to the first half of 2024. Brand advocacy and self-owned brand businesses have become the main drivers of growth in this stage, with total transactions in October achieving rapid growth, with a year-on-year increase of 120%. At the same time, the growth rate of self-owned brand business transactions also showed an impressive performance, with a year-on-year growth of over 350% in October, demonstrating the positive contribution of high-margin businesses to the company's profitability. YSB stated in the announcement that the rapid growth of its performance during the period was attributed to the in-depth advancement of the company's "upward" strategy. This strategy focuses on improving supply chain capabilities and optimizing product structures, strengthening upstream strategic cooperation with pharmaceutical companies and building intelligent supply chain systems to continuously consolidate supply chain efficiency and cost advantages. With a focus on discovering self-owned brand varieties with differentiated competitive advantages, relying on YSB's data insights and resource integration capabilities in the terminal channels, the company has created a group of high-margin and well-recognized products. These products not only effectively meet the demand for cost-effective products in downstream terminals but also further enhance customer stickiness and repurchase rates through stable supply and continuous service optimization. As the sales volume of self-owned brands continues to expand, the overall profit structure of the company is also being continuously improved. Industry views point out that the steady growth of overall business and the rapid progress of high-value-added businesses further validate YSB's strategic transformation from growth in scale to growth in quality. In the context of increasingly fierce competition in the outpatient market, the advantages of upstream supply chain barriers and product differentiation capabilities may become key factors for sustaining performance growth. It is known that the fourth quarter belongs to the traditional peak season for pharmaceutical sales, coupled with the recent level of flu activity significantly higher than the same period last year and showing a rapid upward trend. It is widely expected in the market that the performance of relevant companies in the third quarter and even in the second half of the year is likely to surpass previous conservative forecasts. According to sales data disclosed by YSB earlier, since October of this year, the overall sales volume of flu drugs on the YSB platform has increased by 36% year-on-year, and the sales volume of self-owned brand "Le Yao Shi" cold medicine has grown by over 135% year-on-year. The company's growth momentum is strong, performance is stable and improving, and is worth paying attention to.