Beijing Tong Ren Tang Chinese Medicine Company (3613) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 was HK$601.9 million, down 21.0% year-over-year, with profit attributable to owners at HK$198.2 million, down 15.6%.

• Gross profit margin improved to 63.9% from 60.8% year-over-year, reflecting effective cost control and product mix optimization.

• The company maintained a strong capital structure, low debt, and ample liquidity, with a current ratio of 21.0.

• Strategic tightening of proprietary product distribution led to a 27.8% drop in wholesale revenue, while Hong Kong retail revenue grew 5% year-over-year.

• New product launches and international expansion, including GMP certification in Vietnam and new partnerships in Russia and ASEAN, marked significant progress.

Financial highlights

• Revenue: HK$601.9 million (down 21.0% year-over-year).

• Gross profit: HK$384.7 million (down 16.9% year-over-year).

• Profit before income tax: HK$233.4 million (down 19.4% year-over-year).

• Profit attributable to owners: HK$198.2 million (down 15.6% year-over-year).

• Earnings per share: HK$0.24 (down from HK$0.28 year-over-year).

Outlook and guidance

• Focus on deepening the “2+2+N” product strategy, expanding core and innovative product lines.

• Plans to scale up overseas sales, especially in ASEAN, leveraging new GMP certifications and pursuing multi-country product registration.

• Store revitalization and global supply chain improvements are key priorities for the second half of 2026.

• Emphasis on AI-powered TCM diagnosis and digital transformation to drive future growth.