Tong Ren Tang Technologies Co. Ltd. released unaudited results for the six months to 30 June 2026 showing softer top- and bottom-line performance as tougher mainland demand, channel adjustments and higher cost pressure weighed on earnings.

Financial Highlights • Revenue contracted 19.10% year on year to RMB 3.02 billion, with mainland China sales down to RMB 2.52 billion and overseas sales at RMB 0.47 billion. • Gross profit declined 23.7% to RMB 1.09 billion; gross margin slipped to 36.0% from 38.2% a year earlier. • Operating profit fell 24.7% to RMB 0.43 billion, while finance swung to a net cost of RMB 1.43 million from a RMB 12.09 million gain in the prior-year period. • Profit attributable to shareholders decreased 26.43% to RMB 0.25 billion; basic EPS dropped to RMB 0.19 from RMB 0.26. • The board will not pay an interim dividend, in line with the prior-year decision.

Segment Performance • Mainland manufacturing and sales (“Company” segment) generated RMB 2.20 billion revenue (-10.5 % YoY) and RMB 0.20 billion profit. • Subsidiary Beijing Tong Ren Tang Chinese Medicine contributed RMB 0.53 billion revenue (-24.5%) and RMB 0.18 billion profit. • Other businesses delivered RMB 0.30 billion revenue but recorded a RMB 29.23 million loss.

Cash Flow and Balance Sheet • Net cash from operations reached RMB 0.77 billion (prior-year RMB 1.12 billion). • Cash and cash equivalents stood at RMB 4.79 billion; term deposits added RMB 0.05 billion. • Total borrowings were RMB 1.69 billion, giving a gearing ratio of 0.17. • Liquidity remained strong with a current ratio of 5.08.

Cost and Efficiency Metrics • Distribution expenses eased 28.1% to RMB 414.13 million, keeping the cost-to-sales ratio broadly flat at 14%. • Administrative expenses edged down 2.3% to RMB 260.05 million, lifting the admin-to-sales ratio to 9%. • Inventory turnover improved to 1.46x; trade receivables turnover slipped to 8.35x.

Product & R&D Update Four product series each surpassed RMB 100 million in sales, led by Liuwei Dihuang Pills, Jinkui Shenqi Pills and Ejiao, which grew 23.42%, 42.48% and 37.57% respectively. R&D spend (including staff and depreciation) rose to RMB 56.22 million, or 1.86% of revenue.

Post-Balance-Sheet Event On 14 July 2026 Beijing Dekang Xinrui Trading applied to dissolve Beijing Tong Ren Tang Xing An Healthcare, a 51%-owned subsidiary that contributed 6.49% of Group revenue and 3.78% of profit in H1. Management is evaluating the potential impact and considering disposal options.

Outlook Management expects China’s supportive TCM policies and ongoing product rationalisation to underpin longer-term growth, while it continues to optimise production, strengthen core product marketing and expand health-related lines amid heightened market competition and evolving consumer demand.