Tongrentang Guoyao: Net profit of HK$397 million in 2025, with a diversified business structure and revenue sources

LightningPacketLoss · 2026-03-21T08:56:07+00:00

Tong Ren Tang Chinese Medicine released its performance results through 2025, with revenue of HK$1.513 billion, down 6.1%. Gross profit and net profit also declined. Gross margin fell to 61.2%, primarily due to rising raw material costs. Hong Kong market revenue declined 11.9%, while the mainland China market grew 18.3%. The overall business structure is diversified, which helps mitigate market challenges.

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2026-03-21 08:56:07

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Recently, Tong Ren Tang Chinese Medicine announced its annual results for the year ending December 31, 2025, with the company’s revenue at HKD 1.513 billion, a decrease of 6.1% year-on-year; gross profit at HKD 926 million, down 13.1%; net profit attributable to shareholders at HKD 397 million, a decline of 20.6%. It recommends a final dividend of HKD 0.37 per ordinary share and a special dividend of HKD 0.03.

In the financial review, the gross profit margin decreased from 66.1% to 61.2%, mainly due to increased raw material costs. Distribution and sales expenses totaled HKD 207 million, down 31.0% year-on-year, primarily due to reduced advertising and promotional expenses. General and administrative expenses were HKD 183 million, a decrease of 4.4% year-on-year.

In terms of business, revenue in the Hong Kong market declined by 11.9% year-on-year, mainly due to optimized sales channel management; revenue in Mainland China increased by 18.3% year-on-year. Overseas market revenue grew by 0.9%. Overall, the company’s diversified business structure and sources of income help to cope with market fluctuations and challenges.

(Tong Ren Tang Chinese Medicine Announcement)

(Edited by: Yang Yan, Lin Chen)

Keywords: Healthcare

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