Beijing Tong Ren Tang Chinese Medicine Company (3613) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 was HK$664.5 million, down 18.2% year-over-year, mainly due to weaker sales in Hong Kong and Macao amid challenging retail conditions.

• Profit attributable to owners was HK$219.8 million, a 17.4% decrease compared to the same period last year.

• The Group expanded its product portfolio, opened new retail outlets, and intensified omni-channel marketing efforts, while advancing R&D and international collaborations.

• R&D efforts included new proprietary Chinese medicines, collaborations with international institutions, and a Memorandum of Understanding with Deer Industry New Zealand.

Financial highlights

• Gross profit declined 10.9% year-over-year to HK$451.8 million.

• Profit before income tax was HK$283.6 million, down 19.9% year-over-year.

• Earnings per share fell to HK$0.26 from HK$0.32.

• Cash and bank balances as of 30 June 2024 were HK$1,769.7 million, a 25.6% decrease from 31 December 2023.

• No interim dividend was declared for the period.

Outlook and guidance

• The pharmaceutical consumption market is expected to expand, with Chinese medicine holding significant global growth potential, driven by demographic trends and rising health awareness.

• The Group aims to strengthen R&D, broaden its product matrix, accelerate new product launches and overseas registrations, and optimize retail layout.

• Focus remains on leveraging new quality productive forces for sustained growth.