Beijing Tongrentang (600085) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 reached RMB 13.82 billion, up 0.72% year-over-year, maintaining slight growth on a high base due to ongoing marketing reforms and market adaptation.

• Net profit attributable to shareholders was RMB 1.35 billion, down 2.92% year-over-year, mainly due to increased costs from rising prices of traditional Chinese medicine materials.

Financial highlights

• Q3 revenue was RMB 4.06 billion, up 2.42% compared to the same quarter last year.

• Q3 net profit attributable to shareholders was RMB 329 million, down 18.57% year-over-year.

• Basic EPS for the first nine months was RMB 0.984, down 2.96% year-over-year.

• Total assets at quarter-end were RMB 31.24 billion, up 3.82% from the end of last year.

• Net cash flow from operating activities for the first nine months was negative RMB 52.5 million, compared to a positive RMB 2.39 billion in the prior year period.

Outlook and guidance

• Management expects continued pressure on profit margins due to higher raw material costs, but will focus on marketing reform and cost control to stabilize performance.