Tongrentang H1 2026 Revenue RMB8.38B, Net Profit RMB726M, Down 14.23% and 23.19%
Tongrentang (600085) reported H1 2026 revenue of RMB8.379 billion, down 14.23% year-on-year, and net profit attributable to shareholders of RMB726 million, down 23.19%. Deducted non-recurring net profit fell 24.30% to RMB713 million. The company cited consumption environment changes, retail pharmacy pressure, and industry cycle adjustments. Revenue from pharmaceutical industry fell 16.12% to RMB5.504 billion, while pharmaceutical commerce dropped 19.28% to RMB4.887 billion. R&D expenses rose 39.86% to RMB127 million.
On the evening of August 30, Tongrentang (600085) released its 2026 semi-annual report. In the first half, the company achieved operating revenue of RMB8.379 billion, down 14.23% year-on-year; net profit attributable to shareholders of the listed company was RMB726 million, down 23.19%; deducted non-recurring net profit was RMB713 million, down 24.30%; basic earnings per share were RMB0.529.
By quarter, the company's net profit attributable to shareholders in the first quarter was RMB471 million, and in the second quarter RMB255 million, a decrease of RMB216 million from the first quarter. The company stated that the revenue decline was mainly due to changes in the overall consumption environment and pressure on pharmaceutical retail, leading to a reduction in overall sales revenue; on the profit side, the impact of cyclical adjustments in the traditional Chinese medicine industry, continued pressure on pharmaceutical retail, and the transmission of cost pressures resulted in a phased adjustment in operating results.
By business segment, pharmaceutical industry main business revenue was RMB5.504 billion, down 16.12% year-on-year; pharmaceutical commerce main business revenue was RMB4.887 billion, down 19.28%. By region, domestic revenue in China was RMB7.848 billion, down 13.97%; overseas revenue was RMB486 million, down 18.00%.
In terms of expenses, selling expenses decreased 16.43% year-on-year, administrative expenses decreased 7.90%, and R&D expenses increased 39.86% to RMB127 million. The company said the decline in selling expenses was due to deepening marketing reforms and optimizing selling expenses with precise marketing strategies, while the decline in administrative expenses was due to the implementation of various cost-reduction measures; the increase in R&D expenses was mainly related to increased investment in research on substitutes and other related studies. The company is advancing research on classic formulas such as Wendan Tang granules and Zhenwu Tang granules.
Among subsidiaries, Tongrentang Technologies achieved operating revenue of RMB3.024 billion and net profit of RMB351 million; Tongrentang Chinese Medicine recorded revenue of RMB530 million and net profit of RMB177 million; Tongrentang Commercial achieved revenue of RMB4.503 billion and net profit of RMB57.7188 million. As of the end of the reporting period, Tongrentang Commercial operated 1,243 stores, with 6 newly opened and 42 closed.
In the semi-annual report, the company noted that the growth pace of the pharmaceutical consumer market has slowed, sales at the retail terminal of Chinese patent medicines continue to face pressure, and with the deepening of policies such as medical insurance cost control and normalized centralized procurement, the company's operations still face certain pressure.