GUANGZHOU, China, April 2, 2024 /PRNewswire/ -- On March 27th, Gushengtang announced its financial results for 2023. During the year, the company's revenue reached 2.323 billion yuan, marking a 43% year-over-year increase; the adjusted net profit was 305 million yuan, increased by 53.6% compared to the previous year. Gushengtang continued its strong growth momentum from the last fiscal year, validating its solid fundamentals and excellent growth potential with impressive financial figures.
In 2023, Gushengtang repurchased 143 million Hong Kong dollars worth of shares and distributed dividends of 98 million Hong Kong dollars. With a high proportion of self-financed income, the company boasts abundant cash flow and reserves. The management indicates that while maintaining a high growth rate in its business, the company will also provide investors with satisfactory returns.
In terms of store expansion, the company smoothly progressed with self-construction and acquisitions, expanding its business footprint. Within the year, Gushengtang proceeded with the opening of self-built stores in Foshan Chancheng and Fuzhou Luyi as scheduled and completed the acquisition of five medical institutions, including Kunshan Mingtai, Wuxi Litongfeng Hospital, Wuhan Yide, Baozhongtang Laoshan, and Baozhongtang Eshan. The expansion introduced Wuhan and Kunshan as two new cities to the company's network, increasing the number of offline TCM treatment institutions to 56, covering 16 cities nationwide.
As the business landscape expanded, Gushengtang's team of physicians also developed and grew simultaneously. The number of physicians, both online and offline, saw a net increase of 7,793, reaching a total of 37,224. Among them, the number of physicians with senior titles increased by 2,613 to 14,437, with the proportion of senior title doctors in offline settings rising to 49%, leading the private TCM institutions in terms of renowned medical resources. Additionally, the company's in-house physicians training program achieved good results, with the performance contribution of its own physicians increasing from 25.8% in 2022 to 34.6%, promising to inject more growth momentum into the company's future performance.
Under the enhancement of refined operations, customer loyalty at Gushengtang has continued to improve. In 2023, the number of outpatient visits at Gushengtang increased by 53% year-over-year to 4.3 million, with offline performance growing by 49.2%. The patient return rate advanced from 64% to 65.2%. Furthermore, the number of members jumped to 318,383 from 164,942 in 2022, registering a significant growth of 93%. The proportion of member income to offline income rose to 47%. The company's brand reputation has improved, customer loyalty has increased, and it has won widespread recognition and trust from customers.
Meanwhile, Gushengtang's collaboration with medical consortia has steadily progressed. In 2023, Gushengtang signed medical consortium cooperation agreements with 11 universities and TCM hospitals, including Hubei University of Chinese Medicine, Tianjin University of Traditional Chinese Medicine, Hunan University of Chinese Medicine, Heilongjiang University of Chinese Medicine, Hubei Provincial Hospital of TCM, and the First Affiliated Hospital of Hunan University of Chinese Medicine. These partnerships involve deep cooperation in talent cultivation, scientific research, and medical infrastructure development, marking Gushengtang's development model as recognized and supported by the public system.
Moreover, Gushengtang has accelerated the research and development of in-house formulations and technological innovation, promoting the essence of TCM inheritance and innovative development. In terms of in-house formulations, the company's Spleen-invigorating and Fat-reducing Ointment, Songzhen Hair-Nourishing Granules, Kidney-Nourishing and Potency-Enhancing Ointment, Kidney-Tonic Semen-Enhancing Ointment, He Che Kidney Strengthening Ointment, Pregnancy Maintenance Ointment and Gangju Qingyan Granules among seven other formulations, have successfully been obtained the Registration Approval for Medical Institutions on TCM In-hospital Preparations. In terms of technological innovation, last year Gushengtang collaborated with Baidu and the Chinese Cochrane Center of West China Hospital to co-develop a clinical integration platform for TCM, leveraging AI technology in TCM to empower physicians and enhance diagnostic and treatment efficiency, providing long-term benefits for the company's future development.
In terms of company social responsibility, the company practices its founding mission and interprets corporate responsibility. In 2023, Gushengtang conducted 3,181 sessions of TCM voluntary clinics, serving over 85,000 people across various locations. At the same time, through its internet hospital platform, the company has helped patients from outside Beijing, Shanghai, and Guangzhou save a significant amount of money and time on follow-up visits, solving the difficulties and high costs of medical care. The company supports rural revitalization by purchasing medicinal herbs to help farmers increase their income.
Relying on the data of 1.23 billion traditional Chinese medicine (TCM) consultations nationwide in 2022, Gushengtang currently holds a market share of approximately 0.35% in the TCM service industry. The company's cooperative TCM practitioners account for 4.9% of the national total. Compared to its market share, there is a huge potential for growth in the future.
