Beijing Tong Ren Tang Chinese Medicine Company Limited (“TONGRENTANGCM”) reported HK$601.89 million in revenue for the six months ended 30 June 2026, down 21.0% year-on-year, as softer demand in the Chinese drugs and herbs segment and strategic tightening of wholesale channels weighed on sales.

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Gross profit declined 16.9% to HK$384.68 million; however, gross margin improved to 63.9%, up 3.1 percentage points, reflecting a more profitable product mix and tighter cost control. Profit attributable to shareholders dropped 15.6% to HK$198.20 million, with earnings per share at HK$0.24 versus HK$0.28 a year earlier.

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Operating cash flow remained robust at HK$272.91 million. Cash and bank balances stood at HK$2.21 billion, only 3.1% lower than at year-end 2025, while interest-bearing debt stayed minimal, keeping the gearing ratio at 3.0%. The current ratio strengthened to 21.0 from 19.7, underlining ample liquidity.

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Segment trends showed Hong Kong retail revenue rising 5% amid enhanced promotions and store incentives, but proprietary-product wholesale revenue dropped 27.8% after channel rationalisation in Hong Kong, Macao and mainland China. Inventory fell to HK$1.25 billion, continuing a downward trajectory.

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During the period, TONGRENTANGCM launched Ganoderma Liver Detox Pro and Antelope Horn Powder Capsules, advanced online and offline campaigns for Angong Niuhuang Wan, and secured Vietnam GMP certification for its Tai Po plant—clearing a path for ASEAN expansion. The group also imported Argentine bezoar under a first-of-its-kind Beijing Customs permit and opened a South America representative office.

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Management highlighted six priorities for the second half: deepening the “2+2+N” product strategy, expanding overseas registrations, renovating retail stores under a “3+1” plan, optimising the global supply chain, scaling imports of core medicinal materials, and integrating AI into traditional Chinese medicine services.

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The board did not declare an interim dividend.