Beijing Tong Ren Tang Chinese Medicine Company (3613) investor relations material

Executive summary

• Revenue declined 6.1% year-over-year to HK$1,513.4 million, with net profit down 21.2% to HK$416.9 million and EPS at HK$0.47, reflecting margin pressure and lower sales.

• Final dividend of HK$0.37 per share and special dividend of HK$0.03 per share proposed, up from last year.

• Hong Kong revenue fell 11.9%, overseas revenue rose 0.9%, and Chinese mainland revenue increased 18.3%.

• Gross margin dropped to 61.2% from 66.1% due to higher raw material costs.

Financial highlights

• Gross profit decreased 13.1% year-over-year to HK$925.6 million.

• Distribution and selling expenses fell 31.0% to HK$207.1 million, mainly from lower advertising and promotion.

• General and administrative expenses decreased 4.4% to HK$183.3 million.

• Net finance income was HK$41.2 million, down from HK$50.8 million due to lower deposit rates.

• Cash and bank balances rose 25.2% to HK$2,279.2 million.

• Net cash from operating activities was HK$829.5 million.

Outlook and guidance

• Focus on global expansion, product innovation, and digital transformation to drive growth.

• Plans to enhance supply chain resilience, expand e-commerce, and invest in R&D.

• Aims to strengthen international presence and promote TCM culture globally.