Beijing Tongrentang (600085) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 8.38 billion, down 14.23% year-over-year; net profit attributable to shareholders was RMB 726 million, down 23.19%.

• Gross margin for main business was 42.21%, a decrease of 1.88 percentage points year-over-year.

• Cash flow from operating activities was RMB 1.73 billion, down 11.53% year-over-year.

• The company maintained a stable asset base with total assets of RMB 29.95 billion at period end.

Financial highlights

• Operating income: RMB 8.38 billion, down 14.23% year-over-year.

• Net profit attributable to shareholders: RMB 726 million, down 23.19% year-over-year.

• Basic EPS: RMB 0.529, down 23.22% year-over-year.

• Gross margin for top five industrial products increased by 4.32 percentage points to 51.77%.

• R&D expenses increased by 39.86% to RMB 127 million.

Outlook and guidance

• The company will focus on core product cultivation, cost control, and international expansion in H2 2026.

• Emphasis on digital transformation, R&D innovation, and global market development.

• No interim dividend or capital increase from reserves proposed for the half-year.