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.