Beijing Tongrentang (600085) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB 17.26 billion, down 7.21% year-over-year, with net profit attributable to shareholders at RMB 1.19 billion, down 22.07%.

• Operating cash flow surged 253.87% to RMB 2.69 billion, driven by reduced cash outflows for goods and services.

• The company maintained a strong cash position and continued to invest in R&D, digital transformation, and international expansion.

• A cash dividend of RMB 5.00 per 10 shares was proposed, representing 57.66% of net profit.

Financial highlights

• Gross margin for the year was 42.69%, down 1.08 percentage points year-over-year.

• Operating profit was RMB 2.03 billion, with a total profit of RMB 2.03 billion, both declining from the previous year.

• Basic EPS was RMB 0.867, down 22.10% year-over-year.

• R&D expenses increased 8.38% to RMB 291.98 million, with total R&D investment at 2.27% of revenue.

• Net assets attributable to shareholders rose 3.49% to RMB 13.66 billion.

Outlook and guidance

• The company will focus on high-quality growth, digital transformation, and internationalization in 2026.

• Strategic priorities include optimizing product structure, deepening marketing reform, and enhancing supply chain resilience.

• The industry faces regulatory tightening, raw material price volatility, and intensified competition, but policy support for TCM remains strong.