According to the announcement of Medicine Help (09885.HK) on August 26, Glendon achieved a revenue of 881.4 million yuan, a year-on-year increase of 10.6% during the six months ended June 30, 2024. The increase in revenue is mainly due to the continuous and stable development of the group's self-operated business and platform business during the reporting period. The group's R&D expenses increased by 14.5% from 39.9 million yuan in the same period last year to 45.7 million yuan during the period, mainly due to the increase in equity-settled share-based payment expenses.

During the six months ended June 30, 2024, the company's net profit was 13.4 million yuan, while it was a loss of 317.66 million yuan in the same period last year. The company achieved profitability for the first time during the six months ended June 30, 2024. The adjusted net profit of the group increased by 30.3% from 70.2 million yuan in the same period last year to 91.4 million yuan during the six months ended June 30, 2024.

During the reporting period, the company's business continued to maintain high-quality growth. The company's total GMV was 2,383 million yuan, a year-on-year increase of 8.1%. Based on the continuous expansion of the pharmaceutical health product matrix and the continuous improvement of the user experience, the company has built a high-viscosity and highly active premium user ecosystem. As of June 30, 2024, the company has registered more than 741,000 buyers, including approximately 426,000 drugstores and more than 310,000 grassroots medical institutions. During the reporting period, the average monthly active buyers exceeded 425,000, a year-on-year increase of 20.4%. The average monthly paying buyers reached 396,000, a year-on-year increase of 19.6%. The company's payment rate, that is, the ratio of the average monthly paying buyers to the average monthly active buyers, exceeded 93%, and each paying buyer had an average of approximately 28 orders per month.

As of June 30, 2024, the company has attracted approximately 8,900 upstream sellers and more than 741,000 downstream buyers to conduct transactions on the company's platform. During the reporting period, the GMV of third-party merchants in the company's platform business was 1,423.4 million yuan, accounting for 59.7% of the total GMV, a year-on-year increase of 5.1%.

During the reporting period, the company provided more than 125,000 SKUs to downstream customers and sold approximately 93.2 million yuan of traditional Chinese medicine decoction pieces, a year-on-year increase of approximately 96%. Among them, individual drugstores were the main buyers, accounting for approximately 58% of the overall purchase amount of traditional Chinese medicine decoction pieces, a year-on-year increase of approximately 72%. Overall, the average monthly number of purchasing stores for traditional Chinese medicine decoction pieces exceeded 0.11 million, a year-on-year increase of approximately 45%. Among the purchasing users, the number of grassroots medical institutions increased the fastest, with a year-on-year increase of over 75%. In addition, the average monthly purchasing frequency of traditional Chinese medicine decoction pieces per store exceeded 9 times, a year-on-year increase of approximately 81%. Among them, the number of monthly orders per store for grassroots medical institutions increased the fastest, with a year-on-year increase of over 87%. The rapid growth of new product categories not only verifies the company's ability to continuously expand its capacity circle, but also further lays a solid foundation for the company's increase in revenue and profit.

During the reporting period, the company's self-operated business provided an average of more than 300,000 SKUs to downstream buyers. As of June 30, 2024, the company has established 20 strategic central warehouses and 2 intelligent sub-warehouses nationwide, creating a warehousing layout that combines main warehouses and sub-warehouses, continuously strengthening the company's leading order fulfillment capability in the industry.

As of June 30, 2024, the number of suppliers of the company's self-operated business exceeded 10,000, an increase of over 800 compared to the same period last year. During the reporting period, the GMV of the company's regular self-operated business was approximately 909.5 million yuan, accounting for 38.2% of the total GMV, a year-on-year increase of 14.1%.

During the reporting period, the company continued to search for products with potential for explosive growth in channels, improve the product coverage of 'Le Pharmacist', and enhance differentiation and profitability. As of June 30, 2024, the number of products under the 'Le Pharmacist' brand exceeded 170, officially entering the era of hundreds of premium products. The cumulative number of purchasing customers of 'Le Pharmacist' exceeded 0.3 million, successfully becoming a new force in terminal pharmaceutical sales. During the reporting period, the GMV of 'Le Pharmacist' brand products increased by approximately 160% year-on-year, among which the GMV of purchases by grassroots medical institutions increased by approximately 280% year-on-year. The number of paying users increased by over 94% year-on-year, among which the number of paying users in grassroots medical institutions increased by approximately 180% year-on-year. The company achieved double growth in the number of varieties and sales.

As a leader in the digital ecological construction of the out-of-hospital pharmaceutical industry, the company will deepen its cooperation with all participants in the industry chain and continuously accelerate the digitalization process of the out-of-hospital pharmaceutical industry. The company will always adhere to the original intention of "making good medicine accessible to all", empower upstream and downstream users with continuous and professional digital solutions, and strive to achieve a closed loop of services in product supply, procurement services, and intelligent marketing, enhancing its operational efficiency.

In the longer term, the company will prudently evaluate investment and acquisition opportunities related to the industry chain, actively layout the upstream and downstream of the pharmaceutical and health industry chain through the acquisition of pharmaceutical approvals, equity investments, and other means, and create synergies for business development, continuously enhancing its competitiveness and providing support for the company's sustained development and strategic upgrading.