Recently, global index provider MSCI Inc announced its November index review changes. The MSCI China A Index added 17 constituents while removing 16, with adjustments taking effect after the market close on November 24. Among the deletions was leading retail pharmacy chain Yifeng Pharmacy Chain Co.,Ltd. (603939).

Yifeng Pharmacy is one of China's top pharmaceutical retail chains, operating omnichannel sales of Western/Chinese medicines, herbal pieces, medical devices, health foods, personal care products, and daily necessities. Despite maintaining profit growth in recent years, the pace has slowed significantly. From 2022 to 2024, net profits reached 1.262 billion yuan, 1.412 billion yuan, and 1.529 billion yuan respectively, with year-on-year growth decelerating from 42.12% to 11.90% and 8.26%. For the first three quarters of 2025, revenue grew marginally by 0.39% to 17.286 billion yuan, while net profit increased 10.27% to 1.225 billion yuan.

Meanwhile, the company has seen frequent insider selling this year. Following multiple executive and major shareholder disposals, Yifeng recently announced new management reduction plans. On November 16, Vice Presidents Wang Yonghui and Xiao Zaixiang disclosed intentions to sell up to 213,900 shares combined via centralized bidding, citing personal financial needs. Currently, they hold 601,440 and 254,760 shares respectively.

Earlier, controlling shareholder Houxin Venture Capital and its affiliates sold 24.25 million shares (2% of total equity) through block trades between August 5-6, cashing out 555 million yuan. From February 24 to May 23, 2025, President Gao Youcheng and Assistant President Yan Jun sold 50,400 and 22,900 shares respectively via centralized bidding. Vice President Zhang Zhaoxu also disposed of 20,200 shares on January 2.

In secondary markets, Yifeng's shares closed at 22.93 yuan on November 24, down 1.71% year-to-date with a market capitalization of 27.801 billion yuan, showing virtually no price movement throughout 2025.