{ "id": "epd7tyy4vc", "slug": "jointown-pharmaceutical-group", "title": "Jointown Pharmaceutical Group", "updated": "2026-10-15", "topic_path": [ { "id": "society", "label": "Society and history", "api_url": "https://www.edgepedia.org/api/v1/topics/society" }, { "id": "society.economy", "label": "Economics and business", "api_url": "https://www.edgepedia.org/api/v1/topics/society.economy" }, { "id": "society.economy.business", "label": "Business and work", "api_url": "https://www.edgepedia.org/api/v1/topics/society.economy.business" }, { "id": "society.economy.business.companies-and-commercial-industries", "label": "Companies and commercial industries", "api_url": "https://www.edgepedia.org/api/v1/topics/society.economy.business.companies-and-commercial-industries" }, { "id": "society.economy.business.companies-and-commercial-industries.pharmaceutical-and-healthcare-companies", "label": "Pharmaceutical and healthcare companies", "api_url": "https://www.edgepedia.org/api/v1/topics/society.economy.business.companies-and-commercial-industries.pharmaceutical-and-healthcare-companies" } ], "geo": [ { "id": "geo.chn.t1946.society.economy.business.companies-and-commercial-industries", "label": "China · 1946 to 2000: Companies and commercial industries", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn.t1946.society.economy.business.companies-and-commercial-industries", "path": [ { "id": "geo.chn", "label": "China", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn" }, { "id": "geo.chn.t1946", "label": "China · 1946 to 2000", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn.t1946" }, { "id": "geo.chn.t1946.society", "label": "Society and history", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn.t1946.society" }, { "id": "geo.chn.t1946.society.economy", "label": "Economics and business", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn.t1946.society.economy" }, { "id": "geo.chn.t1946.society.economy.business", "label": "Business and work", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn.t1946.society.economy.business" }, { "id": "geo.chn.t1946.society.economy.business.companies-and-commercial-industries", "label": "Companies and commercial industries", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn.t1946.society.economy.business.companies-and-commercial-industries" } ] }, { "id": "geo.chn.t2021.society.economy.business.companies-and-commercial-industries", "label": "China · 2021 and later: Companies and commercial industries", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn.t2021.society.economy.business.companies-and-commercial-industries", "path": [ { "id": "geo.chn", "label": "China", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn" }, { "id": "geo.chn.t2021", "label": "China · 2021 and later", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn.t2021" }, { "id": "geo.chn.t2021.society", "label": "Society and history", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn.t2021.society" }, { "id": "geo.chn.t2021.society.economy", "label": "Economics and business", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn.t2021.society.economy" }, { "id": "geo.chn.t2021.society.economy.business", "label": "Business and work", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn.t2021.society.economy.business" }, { "id": "geo.chn.t2021.society.economy.business.companies-and-commercial-industries", "label": "Companies and commercial industries", "api_url": "https://www.edgepedia.org/api/v1/geo/geo.chn.t2021.society.economy.business.companies-and-commercial-industries" } ] } ], "excerpt": "Jointown Pharmaceutical Group (九州通) is China's largest privately owned pharmaceutical distributor, a Wuhan company founded by Liu Baolin in 1999 and listed in Shanghai since 2010.", "snippet": "Jointown Pharmaceutical Group (九州通) is China's largest privately owned pharmaceutical distributor, a Wuhan company founded by Liu Baolin in 1999 and listed in Shanghai since 2010.", "node": "society.economy.business.companies-and-commercial-industries.pharmaceutical-and-healthcare-companies", "markdown": "# Jointown Pharmaceutical Group\n\n**Jointown Pharmaceutical Group** (九州通医药集团股份有限公司) is China's largest privately owned pharmaceutical distributor, a Wuhan-based company founded in March 1999 by Liu Baolin that moves drugs, medical devices, and health products from manufacturers to hospitals, pharmacies, clinics, and e-commerce platforms across all 31 provincial-level regions of China.[1](https://www.adb.org/sites/default/files/project-documents/54077/54077-002-xarr-en.pdf) It is the fourth largest pharmaceutical distributor in the country and the only privately owned one among the top five, listed on the [Shanghai Stock Exchange](https://www.edgepedia.org/shanghai-stock-exchange) since November 2010 under code 600998.SH.[1](https://www.adb.org/sites/default/files/project-documents/54077/54077-002-xarr-en.pdf) • [2](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit)\n\n| Key fact | Detail |\n|---|---|\n| Founded / listed | March 1999, Wuhan, by Liu Baolin; Shanghai Stock Exchange November 2010 (600998.SH)[1](https://www.adb.org/sites/default/files/project-documents/54077/54077-002-xarr-en.pdf) • [2](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit) |\n| Revenue | RMB 151.8 billion in 2024 (+1.11%); RMB 161.3 billion in 2025[3](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF) • [4](https://finance.sina.com.cn/roll/2026-04-29/doc-inhwckrh8000831.shtml) |\n| Revenue mix (2024) | Distribution 95.8%, manufacturing 2.0%, retailing 2.0%[2](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit) |\n| Market share | 4.72% (2019) → 5.76% (2022) → 7.13% (2023) of domestic pharmaceutical wholesale[5](https://stockn.xueqiu.com/SH600998/20240426658846.pdf) • [3](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF) |\n| Logistics | 141 warehousing centers, 3.95 million sqm (2024, excluding REITs assets), 115,500 cubic meters of cold chain, coverage of over 96% of regions[3](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF) |\n| Ownership | Chuchang Investment Group and concert parties hold 42.3%; founder Liu Baolin is the ultimate controller[2](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit) |\n| Net profit | RMB 2.507 billion attributable to shareholders in 2024, up 15.33%[3](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF) |\n\n## What Jointown does\n\nJointown sits in the middle segment of China's pharmaceutical industry, integrating upstream manufacturers with downstream hospitals, pharmacies, and e-commerce platforms, and treats logistics as its core advantage.[6](https://www.jointown.com/en) Distribution dominates: pharmaceutical distribution accounted for 95.8% of 2024 revenue, with manufacturing at 2.0% and retailing at 2.0%, so it is a distributor first and a manufacturer and retailer only at the margins.[2](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit) The company describes its main business in six parts: digital pharmaceutical distribution and supply chain, general agency brand promotion (a CSO, or contract sales organization, business), pharmaceutical self-production and OEM, new retail through its Ten-Thousand Store Alliance, medical health and technology value-added services, and digital logistics solutions.[7](https://www.jointown.com/en/pageAbout)\n\nThe non-distribution lines are growing but small. The CSO and total-agency brand-promotion business reached RMB 19.267 billion of sales in 2024 and RMB 19.777 billion in 2025, of which drug total-agency brand promotion was RMB 12.217 billion, up 13.44%.[3](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF) • [8](https://stockmc.xueqiu.com/202604/600998_20260428_3YQV.pdf) Self-produced and OEM pharmaceutical manufacturing reached RMB 3.007 billion in 2024, up 21.49%, and RMB 3.333 billion in 2025.[3](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF) • [8](https://stockmc.xueqiu.com/202604/600998_20260428_3YQV.pdf) Behind the manufacturing line sit 250,000 mu of standardized medicinal herb cultivation bases and 13 modernized herbal processing enterprises, giving the company a traditional Chinese medicine supply chain of its own.[2](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit)\n\n## Logistics network and customers\n\n**The physical network.** In 2024 Jointown operated 141 modern pharmaceutical warehousing centers with a total building area of over 3.95 million square meters, including 2.55 million square meters of GSP-certified pharmaceutical warehouse (GSP is China's good supply practice standard for drug handling), plus 115,500 cubic meters of high-standard cold-chain capacity; the network covered over 96% of China's regions across 31 provincial-level areas and 110 prefecture-level cities.[3](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF) The Asian Development Bank's project record puts combined storage capacity at 15.3 million boxes.[1](https://www.adb.org/sites/default/files/project-documents/54077/54077-002-xarr-en.pdf) Once warehousing centers sold into REITs and Pre-REITs structures are counted back in, the 2025 annual report gives 141 centers totaling 5 million square meters with 2.96 million square meters GSP-certified, and the 2026 half-year report 5.18 million square meters; the 3.95 million and 5 million-plus figures therefore measure different asset scopes rather than different networks.[8](https://stockmc.xueqiu.com/202604/600998_20260428_3YQV.pdf) • [9](https://paper.cnstock.com/html/2026-08/25/content_2259263.htm) Cold-chain services are provided to vaccine makers including Sinovac, Changchun Baike, and Jinyu Baoling.[3](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF)\n\n**Who buys.** In 2024 the medical-institution channel alone served 299,900 customers and generated RMB 57.762 billion, up 6.69%, of which tiered hospitals contributed RMB 41.379 billion, private medical institutions RMB 8.543 billion, and grassroots medical institutions RMB 7.840 billion.[3](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF) Across all client types in 2024, commercial distribution was the largest at RMB 45.2 billion, followed by public hospitals at RMB 38.8 billion (+9.4%), pharmacies at RMB 26.2 billion (+7.5%), e-commerce platforms at RMB 17.3 billion, and healthcare centers at RMB 15.4 billion (+16.4%), the fastest-growing category.[2](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit) By mid-2025 the omnichannel B2B client base had reached 628,600 enterprises with around 864,200 product listings, and Jointown held distribution rights for 3,320 government-led procurement contracts, 369 of them exclusive.[2](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit)\n\n## By the numbers\n\nRevenue has grown from RMB 21.185 billion in the 2010 listing year to RMB 151.810 billion in 2024, a compound annual growth rate of 15.10%, while attributable net profit grew from RMB 360 million to RMB 2.507 billion (CAGR 14.88%).[3](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF) The recent path runs RMB 140.4 billion (2022), RMB 150.1 billion (2023), RMB 151.8 billion (2024), and RMB 161.3 billion (2025).[2](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit) • [4](https://finance.sina.com.cn/roll/2026-04-29/doc-inhwckrh8000831.shtml) In the first three quarters of 2024 revenue actually fell 0.82% to RMB 113.429 billion and attributable net profit fell 6.99%, with gross margin down 0.15 points to 7.96%, before the full year recovered.[10](https://www.vcbeathealth.com/article/33215)\n\n**Margins are thin by design.** Across China's directly reporting drug distribution enterprises in 2024, average gross margin was 7.2%, average expense ratio 6.2%, and net profit margin 1.4%, on main-business revenue of RMB 2,243.1 billion.[11](https://yplt.mofcom.gov.cn/stat/attach/2024tjfxbg.pdf) Jointown's own 9M2024 gross margin of 7.96% sits slightly above that industry average, and its EBIT margin per CCXAP rose from 2.9% in 2022 to 3.5% in 2024.[10](https://www.vcbeathealth.com/article/33215) • [2](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit) The model is high-volume, low-margin: a 1.4% net margin means roughly RMB 1.40 of profit per RMB 100 of drugs moved.\n\n## Position against the state-owned giants\n\nChina's wholesale market has consolidated into what the 2025 annual report calls a \"5+N\" structure: Sinopharm, Shanghai Pharma, CR Pharmaceutical, Jointown, and Chongqing Pharma as the five national leaders plus regional firms.[8](https://stockmc.xueqiu.com/202604/600998_20260428_3YQV.pdf) In 2024 revenue terms, Sinopharm remained above RMB 580 billion despite a roughly 2% decline, its first since its 2009 listing; Shanghai Pharma reached RMB 275.25 billion; CR Pharma RMB 257.67 billion; and Jointown RMB 151.8 billion.[12](https://www.1188cj.cn/hangye/yiyao/73957.html) Trade press describes the landscape as \"3 state-owned + 1 private\".[10](https://www.vcbeathealth.com/article/33215)\n\nJointown's reach matches the leaders: by end-2024 it and Sinopharm each covered all 31 provinces, against 28 for CR Pharma and 25 for Shanghai Pharma.[12](https://www.1188cj.cn/hangye/yiyao/73957.html) Its net profit margin of about 1.65% in 2024 was comparable to Shanghai Pharma's and above CR Pharma's roughly 1.3% and Sinopharm's 1.2%.[12](https://www.1188cj.cn/hangye/yiyao/73957.html) [Ownership](https://www.edgepedia.org/ownership) is the sharpest distinction: state-owned and state-controlled enterprises account for 61.8% of main-business revenue among directly reported distributors, while Jointown's controlling shareholder is the private Chuchang Investment Group (CCIG) with concert parties holding 42.3%, Liu Baolin the ultimate controller.[13](https://finance.sina.com.cn/stock/relnews/cn/2024-12-26/doc-ineauzhm1028821.shtml) • [2](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit) The sector remains fragmented overall, with 14,792 distributors at end-2023.[1](https://www.adb.org/sites/default/files/project-documents/54077/54077-002-xarr-en.pdf)\n\n## Policy environment\n\nTwo policies shape distributor economics. The *two-invoice system*, introduced by the [State Council](https://www.edgepedia.org/state-council) in 2017 across eight pilot provinces, limits the drug distribution chain to at most two invoices, aiming to squeeze out padding intermediaries; it has helped drive consolidation, with the top four distributors' market share rising from 37.7% in 2020 to 41.3% in 2023.[1](https://www.adb.org/sites/default/files/project-documents/54077/54077-002-xarr-en.pdf) Volume-based procurement (VBP), the centralized bulk-buying program, pushes drug prices down and, per CCXAP, has narrowed distribution margins and lengthened accounts receivable collection periods.[2](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit) A 2026 study in the *Journal of Health Economics*, using staggered difference-in-differences on 2015 to 2019 procurement data, found the two-invoice system raised average drug prices by 1.9%, contrary to policy expectations, with larger increases for lower-priced drugs and in wealthier regions, and manufacturers' sales and marketing expenses rising as they absorbed promotional costs previously borne by distributors.[14](https://ideas.repec.org/a/eee/jhecon/v105y2026ics0167629625001328.html) The receivables burden is industry-wide: a 2024 survey of 630 wholesalers found average collection of 154 days from medical institutions.[15](https://www.pharnexcloud.com/zixun/shiye/yfzczc_258817)\n\n## Digital channels and recent changes\n\n**B2B e-commerce.** The Yao Jiu Jiu (药九九) B2B platform and retail e-commerce service business generated RMB 17.684 billion in 2024 and RMB 21.613 billion in 2025, up 22.22%, alongside B2C e-commerce total-agency sales of RMB 1.128 billion in 2025 led by interest-based e-commerce on Douyin and Kuaishou.[3](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF) • [8](https://stockmc.xueqiu.com/202604/600998_20260428_3YQV.pdf) In 2023 the broader digital distribution and supply-chain business was RMB 125.044 billion, 83.37% of main-business revenue, including RMB 6.085 billion of sales to large platforms such as JD, Alibaba, Meituan, and Douyin.[5](https://stockn.xueqiu.com/SH600998/20240426658846.pdf)\n\n**Asset monetization and rating.** In December 2024 Jointown announced the sale of 100% equity in three logistics subsidiaries for about $2.4 billion to advance its Pre-REITs strategy, and its public REITs application, accepted in September 2024, is the first in the pharmaceutical industry and the first by a private Hubei enterprise; the company projects a public REITs issuance could add up to RMB 700 million of net profit and a Pre-REITs issuance up to RMB 900 million.[10](https://www.vcbeathealth.com/article/33215) The first Pre-REITs tranche completed in 2024 added RMB 576 million to net profit.[12](https://www.1188cj.cn/hangye/yiyao/73957.html) In August 2024 China Chengxin upgraded the company's main credit rating to AAA with stable outlook, the only private pharmaceutical distribution enterprise with that rating.[7](https://www.jointown.com/en/pageAbout)\n\n**Retail and strategy.** The Hao Yaoshi (好药师) pharmacy franchise grew from about 29,000 stores in 2024 to over 34,500 in 2025, with franchised pharmacy revenue of RMB 5.4 billion in 2024, up 54.9%, and 31,535 direct-operated and franchised outlets across 293 prefecture-level cities by mid-2025.[3](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF) • [8](https://stockmc.xueqiu.com/202604/600998_20260428_3YQV.pdf) • [2](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit) The Jiuyi Clinic member-store network reached 3,338 stores in 2025.[8](https://stockmc.xueqiu.com/202604/600998_20260428_3YQV.pdf) In 2025, with revenue passing RMB 161.3 billion, the company launched a \"Four New, Two Modernizations\" (四新两化) strategy to accelerate its transformation.[4](https://finance.sina.com.cn/roll/2026-04-29/doc-inhwckrh8000831.shtml)\n\n## COVID-19 and the post-pandemic base\n\nThe 2024 annual report attributes part of the year's slow headline growth to the high base created by pandemic-specific factors in the prior year; excluding that seasonal-disease base effect, 2024 revenue grew 2.58% and attributable net profit grew 39.88%, with non-recurring-adjusted net profit up 14.89%.[3](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF) Jointown's role as a national distributor placed it in the pandemic supply chain for medicines and medical goods, the context of the [Asian Development Bank](https://www.edgepedia.org/asian-development-bank)'s COVID-19 pharmaceutical distribution expansion project with the company.[1](https://www.adb.org/sites/default/files/project-documents/54077/54077-002-xarr-en.pdf)\n\n## References\n\n1. [Jointown COVID-19 Pharmaceutical Distribution Expansion Project, ADB extended annual review report](https://www.adb.org/sites/default/files/project-documents/54077/54077-002-xarr-en.pdf)\n2. [CCXAP Credit Opinion on Jointown Pharmaceutical Group](https://www.ccxap.com/zh-hans/download/?id=1242&page=credit)\n3. [九州通医药集团股份有限公司2024年年度报告 (Jointown 2024 Annual Report), cninfo/SSE filing](https://static.cninfo.com.cn/finalpage/2025-04-29/1223384161.PDF)\n4. [九州通年营收突破1613亿元 开启\"四新两化\"战略加速转型, Sina Finance](https://finance.sina.com.cn/roll/2026-04-29/doc-inhwckrh8000831.shtml)\n5. [九州通医药集团股份有限公司2023年年度报告 (Jointown 2023 Annual Report)](https://stockn.xueqiu.com/SH600998/20240426658846.pdf)\n6. [Jointown Pharmaceutical Group official corporate website (English)](https://www.jointown.com/en)\n7. [Jointown Pharmaceutical Group, Corporate About page](https://www.jointown.com/en/pageAbout)\n8. [九州通医药集团股份有限公司2025年年度报告 (Jointown 2025 Annual Report)](https://stockmc.xueqiu.com/202604/600998_20260428_3YQV.pdf)\n9. [九州通医药集团股份有限公司2026年半年度报告摘要, 上海证券报](https://paper.cnstock.com/html/2026-08/25/content_2259263.htm)\n10. [Jiuzhou Tong Announces $2.4 Billion Sale of Three Logistics Subsidiaries to Advance Pre-REITs Strategy, vcbeat health](https://www.vcbeathealth.com/article/33215)\n11. [商务部《2024年药品流通行业运行统计分析报告》(MOFCOM 2024 Pharmaceutical Distribution Industry Statistical Analysis Report)](https://yplt.mofcom.gov.cn/stat/attach/2024tjfxbg.pdf)\n12. [国控、上药、华润、九州通，四大千亿药商业绩大比拼！](https://www.1188cj.cn/hangye/yiyao/73957.html)\n13. [国药、上药、华润、九州通，5家千亿巨头就位！医药流通进入\"寡头\"时代, Sina Finance](https://finance.sina.com.cn/stock/relnews/cn/2024-12-26/doc-ineauzhm1028821.shtml)\n14. [Has the shortened drug distribution chain cut drug prices? Evidence from the Two-Invoice System in China, Journal of Health Economics](https://ideas.repec.org/a/eee/jhecon/v105y2026ics0167629625001328.html)\n15. [商务部《2024年药品流通行业运行统计分析报告》亮点速览, Pharnexcloud](https://www.pharnexcloud.com/zixun/shiye/yfzczc_258817)\n\n---\n*Topic: Encyclopedia › Society and history › Economics and business › Business and work › Companies and commercial industries › Pharmaceutical and healthcare companies*\n\n*Initially written Oct 10, 2026 · Edited: Oct 11, 2026; Oct 15, 2026*\n\n*Copyright 2026 EdgeChat AI, a subsidiary of Biostate AI.*\n\nLicense: Edgepedia Community License 1.0, https://www.edgepedia.org/edgepedia/license\n", "same_as": [], "url": "https://www.edgepedia.org/jointown-pharmaceutical-group", "markdown_url": "https://www.edgepedia.org/jointown-pharmaceutical-group.md", "license": { "name": "Edgepedia Community License 1.0", "url": "https://www.edgepedia.org/edgepedia/license", "summary": "Free with credit, commercial use included. AI training is open to everyone. For other uses, organizations over USD 100M in revenue or 100M monthly users license separately.", "spdx": "LicenseRef-Edgepedia-Community-1.0" }, "credit": "\"Jointown Pharmaceutical Group\", Edgepedia (EdgeChat), https://www.edgepedia.org/jointown-pharmaceutical-group. Edgepedia Community License 1.0.", "credit_md": "\"[Jointown Pharmaceutical Group](https://www.edgepedia.org/jointown-pharmaceutical-group)\", Edgepedia (EdgeChat), [https://www.edgepedia.org/jointown-pharmaceutical-group](https://www.edgepedia.org/jointown-pharmaceutical-group). [Edgepedia Community License 1.0](https://www.edgepedia.org/edgepedia/license).", "credit_html": "\"Jointown Pharmaceutical Group\", Edgepedia (EdgeChat), https://www.edgepedia.org/jointown-pharmaceutical-group. Edgepedia Community License 1.0.", "speakable": "Jointown Pharmaceutical Group is China's largest privately owned pharmaceutical distributor, a Wuhan company founded by Liu Baolin in 1999 and listed in Shanghai since 2010." }