Beijing Tong Ren Tang Chinese Medicine Company (3613) Q4 2024 earnings summary

Executive summary

• Revenue rose 5.7% year-over-year to HK$1,611.6 million, driven by growth in Hong Kong and Mainland China markets.

• Net profit declined 10.4% to HK$529.2 million, with profit attributable to owners down 7.4% to HK$500.3 million.

• Earnings per share decreased to HK$0.60 from HK$0.65; final dividend proposed at HK$0.35 per share, up from HK$0.33.

• Hong Kong revenue grew 16.9% despite retail sector challenges; Mainland China revenue up 7.8%; Overseas revenue fell 16.2% due to Macao market decline.

• Gross profit margin decreased to 66.1% from 68.7% due to higher raw material and manufacturing costs.

Financial highlights

• Revenue: HK$1,611.6 million (+5.7% YoY); Gross profit: HK$1,065.3 million (+1.7% YoY).

• Net profit: HK$529.2 million (-10.4% YoY); Profit attributable to owners: HK$500.3 million (-7.4% YoY).

• Basic EPS: HK$0.60 (2023: HK$0.65); Proposed final dividend: HK$0.35 per share.

• Cash and bank balances: HK$1,819.8 million (-23.5% YoY); Inventories: HK$1,589.0 million (+57.1% YoY).

• Net cash used in operating activities: HK$217.3 million; capital expenditure: HK$43.2 million.

Outlook and guidance

• 2025 focus: "Adjustment and Recovery, Cost Reduction and Efficiency Improvement".

• Plans to optimize management, expand product categories, refine investments, and enhance supply chain efficiency.

• Continued investment in R&D, product innovation, and global intellectual property protection.

• Chinese medicine industry expected to benefit from policy support and rising global demand.