Tianjin Pharmaceutical Da Ren Tang Group Corporation posted a net profit of RMB423.1 million for the three months ended Mar 31, 2026, up 14 per cent year-on-year, lifted by higher contributions from its core traditional Chinese medicine (TCM) portfolio.

Revenue edged up 4 per cent to RMB1.52 billion, while basic earnings per share improved to RMB0.55 from RMB0.49 a year earlier. No interim dividend was declared.

Chinese medicine remained the dominant revenue generator, expanding 7 per cent to RMB1.41 billion and accounting for 93 per cent of group turnover. Western medicine sales contracted 55 per cent to RMB8.6 million, and raw Chinese medicine & pieces retreated 23 per cent to RMB68.3 million. Gross profit margin widened to 76 per cent from 72 per cent, reflecting a richer product mix.

The bottom line was also supported by lower marketing and distribution expenses (-2 per cent YoY) and reduced finance costs (-26 per cent YoY). These gains were partly offset by a RMB38.7 million inventory write-down and a 67 per cent fall in contributions from associates after the previous-year comparison included one-off income from Sino-American Tianjin.

Cash flow from operations surged to RMB418.9 million, driven by lower tax payments, while net cash from investing activities turned positive following the redemption of large-denomination certificates of deposit. The group paid out RMB1.88 billion in dividends declared last year, resulting in an 11 per cent quarter-on-quarter drop in cash and cash equivalents to RMB902 million.

Looking ahead, management said it plans to sharpen its product-portfolio focus, accelerate clinical research on high-potential second-tier formulations and deepen supply-chain optimisation to manage raw-material volatility. The company also aims to advance brand rejuvenation and expand overseas amid supportive industry policies promoting high-quality growth in the TCM sector.