TJ DaRenTang USD's stock soared 3.65% during intraday trading on Tuesday, following the release of the company's annual financial results and strategic announcements.
The company reported its FY2025 results, showing a net profit of RMB2.11 billion. While revenue fell 33% year-on-year due to the de-consolidation of a subsidiary, the gross margin widened significantly to 72% from 47%, driven by a greater proportion of higher-margin Chinese medicine products. The board has endorsed a final cash dividend and will seek shareholder approval for its distribution.
Investor sentiment was further bolstered by the announcement of a shareholder return plan for 2026-2028, which commits the company to distributing annual cash dividends based on a percentage of distributable profits. The plan outlines specific payout ratios depending on the company's development phase and capital expenditure needs, signaling a strong commitment to returning value to shareholders.