Beijing Tongrentang (600085) H2 2024 earnings summary

Executive summary

• 2024 revenue reached RMB 18.60 billion, up 4.12% year-over-year, with net profit attributable to shareholders at RMB 1.53 billion, down 8.54% year-over-year.

• Gross margin declined due to a 10.7% increase in cost of goods sold, mainly from higher raw material prices.

• Cash dividend of RMB 5.00 per 10 shares proposed, with total cash dividends for the year accounting for 44.93% of net profit.

• The company maintained a stable financial position, with total assets of RMB 31.20 billion, up 3.68% year-over-year.

• No material risks or uncertainties impacted operations during the reporting period.

Financial highlights

• Operating income: RMB 18.60 billion, up 4.12% year-over-year.

• Net profit attributable to shareholders: RMB 1.53 billion, down 8.54% year-over-year.

• Basic EPS: RMB 1.113, down 8.55% year-over-year.

• Operating cash flow: RMB 761 million, down 59.29% year-over-year.

• Gross margin: 43.77%, down 3.34 percentage points year-over-year.

Outlook and guidance

• 2025 is positioned as a key year for strategic transformation, with a focus on high-quality growth, digitalization, and innovation.

• The company will deepen its "three major development strategies," accelerate new product R&D, and expand digital and international business.

• Emphasis on cost control, supply chain optimization, and continued investment in R&D and ESG initiatives.