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Hanyang District

No. 8,Longyang Avenue

400-160-0998

believen@jztey.com

www.yyjzt.com

Core Competencies
Digital distribution and supply chain service platform for all categories, channels and scenarios in the pharmaceutical industry
Figure 10 Jointown's pharmaceutical supply chain service system
(1) Full category: The Company has accumulated a wealth of operating categories, including Western medicine, Chinese patent medicine, Chinese herbal pieces, traditional Chinese medicinal materials, medical devices, family planning supplies, biological products, health care products and cosmetics, totaling 510,000 varieties and product specifications, including 99,400 for Chinese and Western patent medicines, 273,200 for devices, 73,000 for traditional Chinese medicine and 64,300 for health products, cosmetics and other product specifications, meeting the “one-stop” procurement needs of customers from different downstream channels.
(2) Full channel: The Company has established an industry scarce omni-channel distribution network, covering more than 90% of administrative areas in China, including city- and county-level public hospitals (terminal 1), chain and single pharmacies (terminal 2), grassroots private medical institutions (terminal 3), Internet traffic platforms (terminal 4) and downstream pharmaceutical distributor (quasi-terminal) customers; the Company had about 397,000 B-end customers in all channels, including 12,000 city- and county-level public hospitals, 175,000 chain and single pharmacies (covering a total of about 330,000 retail pharmacies), 190,000 grassroots private medical institutions (including more than 10,000 private hospitals), about 10,000 downstream pharmaceutical wholesale customers and nearly 10,000 other customers, which could ensure the smooth entry of various OTC varieties and hospital clinical varieties into various channel terminals.
(3) Full scenario: Relying on the core advantages of full category and full channel, the Company actively expanded service scenarios to upstream suppliers, downstream customers and C-end customers, enlarged the business layout of general agency sales, integration of wholesale and retail, integration of BC warehouses and “Ten-Thousand Store Alliance Plan”. With the support of digitization and interconnection, the Company has transformed from a simple pharmaceutical wholesaler to a comprehensive service provider of commercial distribution, general agency sales, third-party logistics and logistics technology. In addition, the Company has transformed from carrying out retail business by solely relying on physical pharmacies or e-commerce platforms to providing omni-scenario online and offline medical and health services combining “medical care + pharmaceuticals+ insurance”, with C-end customers as precise service terminals.
Efficiently operated digital, platform-based and Internet-based industrial service capability
(1) Digital services: The Company had independently developed the national unified business, logistics and financial information system, including supply chain service platform, ERP system, financial sharing system, logistics management information system (LMIS) and other management systems, which laid a solid foundation for the Group to build a unified Internet digital service platform and capabilities for providing digital services. The Company's digital system not only enhanced internal management level and operating efficiency but also provided external value-added services, as well as the support for efficient and safe logistics supply chain services. At the beginning of 2022, the Company released a digital transformation plan and set up a digital transformation project group to focus on various aspects such as customer experience improvement and external business empowerment.
(2) Platform-based services: The Company has built a full-channel highway platform covering chain pharmacies, single pharmacies/clinics, hospitals/grassroots medical institutions, county-level business alliance distributors (quasi-terminals), and an Internet-based pharmaceutical supply chain, and has made use of this platform to run different kinds of medicines, medical devices, TCMs, consumer goods, self-made goods, and products of general agency sales. The Company had infrastructures for the largest pharmaceutical supply chain service platform in China, including business and supporting facilities containing 141 warehouses with a gross floor area of 4,100,000 m2 among which there're 2,570,000 m2 warehouse facilities conforming to GSP standards and 519 freezers (with an area of 45,000 m2 and a volume of 105,000 m3).
(3) Internet-based services: Starting from pharmaceutical distribution and retail, the Company has built an Internet trading platform and an Internet toolkit to provide customers with empowerment services. The sales volume of the Internet trading platform has reached RMB 14.47 billion, and the platform has become the largest self-operated pharmaceutical B2B e-commerce platform in China. Meanwhile, the Internet service tools launched by the Company, including “Miyaoyun”, “Miyaodian” and “Medical Helper”, have empowered plenty of hospitals, pharmacies, grassroots medical institutions and other customers, providing cloud warehouse backend support services for pharmaceutical supply chain and internet-based medical prescriptions.
Flexible and efficient private system and characteristic “home” culture brand advantages
(1) Private system: As the largest private pharmaceutical circulation enterprise in China, the Company has the competitive advantage of flexible mechanisms and efficient decision-making. Since 2014, Jointown has constantly promoted the restricted stock incentive plan and employee stock ownership plan. The incentive objects cover the directors and intermediate and senior managers of the company, senior managers of subsidiaries, core technical personnel and business personnel of the group, etc., so as to ensure that personal interests were closely linked with the interests of the Company, and form an efficient management team with shared interests and strong execution capability.
(2) Culture brand: After years of development, the Company has formed the original ecological “Family” culture system that takes the culture of creating a common cause and master culture as its prominent connotations and advocates the concept of “equality, friendship, mutual aid, and mutual progress”. Besides, by adhering to the “customer-centered, performance-oriented, culture-driven and quality-based” core values, the Company constantly integrated the culture and uses the tie of the “Family” culture to enhance the cohesion, centripetal force, and competitiveness of the group, so as to give full play to the important role of corporate culture in enhancing the core competitiveness of enterprises. As the first brand of private pharmaceutical circulation, the Company courageously assumed social responsibilities. In the early stage of the COVID-19 outbreak in 2020, the management and staff of the Company gave up the Spring Festival holiday and devoted themselves to the fight against the pandemic. They donated materials money and materials worth over RMB 17 million, and assisted the Red Cross Society of China Wuhan Branch in the logistics operation and management of donated materials. These actions greatly enhanced the popularity and reputation of the Company; during the torrential rains in Henan, Shanxi and Suizhou, Hubei Province in 2021, Jointown rushed to the aid of the local flood relief efforts, donating a total of more than RMB 16 million in cash along with pharmaceutical supplies, which were widely praised by the society, and the enterprise was awarded as a “fraternal enterprise” by Hubei Province Government; since the COVID-19 outbreak in Shanghai in March 2022, the Company has leveraged the advantages of the Group to urgently deploy vehicles and manpower to assist Shanghai, and cooperated with the government to mobilize pandemic prevention supplies and medicines to meet the emergency needs for pandemic prevention.
Industry-leading capability to incubate new business forms and support business innovation
(1) Capability to support new business forms: Relying on the omni-category, omni-channel and omni-scenario pharmaceutical supply chain service platform and digital, efficiently operated digital, platform-based and Internet-based industrial service capability, the Company laid out the industrial chain and explored new business forms, such as: empowering manufacturers to implement effective management of sales staff, categories and customers with “Zhiyaotong” system established by the Company; assisting in the prescription circulation of physical hospitals with “Miyaoyun” system developed by the Company; empowering the management of pharmacies under the “Ten-Thousand Store Alliance Plan” with “Miyaodian” developed by the Company; empowering grassroots health care institutions with Medical Helper; and supporting the businesses of pharmacies and clinics with “Yaojiujiu” platform. According to the needs of innovative business and technological development, Jointown continues to attract all types of external talents to join the company, which effectively promotes its business development and technological innovation.
(2) Business innovation capability: The Company has a strong business innovation capability. In the past 10 years, the Company's business model has been constantly optimized and reformed. After the transformation from the traditional model of “fast approval and fast distribution” for pharmacies, clinics and grassroots medical institutions to the comprehensive service model of “pharmaceutical distribution + logistics distribution + product promotion” for all channels, Jointown also made use of the advantages of billions of platform resources to incubate new businesses and models, such as “Me Health” platform, “third-party logistics” service platform, ecosystem investment platform and supply chain technology value-added service platform.
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