Company History and Heritage - Beijing Tong Ren Tang has a history of 356 years, founded in 1669, and has been the sole provider of Chinese medicine to the royal family for 188 years[8] - The company has a history of supplying imperial medications for 188 years, gaining trust and recognition for its products[32] - The company has a 356-year history, emphasizing its commitment to preserving health and serving society through traditional medicine[38] Financial Performance - In 2024, the financial highlights section indicates a significant increase in revenue, with a year-over-year growth of 15%[11] - In 2024, the company's revenue reached HK$1,611,644,000, an increase of 5.7% compared to HK$1,524,945,000 in 2023[58] - The Group achieved revenues of HK$1,611.6 million in 2024, representing a year-on-year increase of 5.7% from HK$1,524.9 million in 2023[77] - The net profit for the Group was HK$529.2 million, a decrease of 10.4% compared to HK$590.6 million in 2023[77] - Profit for the year decreased to HK$529,167,000, a decline of 10.4% from HK$590,587,000 in 2023[58] - Profit attributable to owners of the company was HK$500,278,000, down from HK$540,393,000 in the previous year[58] - Earnings per share for 2024 was HK$0.60, compared to HK$0.65 in 2023[58] - The net profit margin for 2024 was 32.8%, a decrease from 38.7% in 2023[58] - The return on equity for 2024 was 12.5%, down from 14.7% in 2023[58] Market Expansion and Strategy - The company plans to expand its retail market layout, aiming for a 25% increase in the number of retail outlets by the end of 2025[12] - The company is exploring potential mergers and acquisitions to enhance its market presence and product offerings[11] - The company has a strategy to expand overseas markets, collaborating with time-honored TCM brands[24] - The company aims to strengthen its e-commerce channel layout and development to promote the internationalization of TCM[26] - The company plans to expand its online and offline retail network to popularize the TCM concept of disease prevention[24] - The company is focused on introducing new varieties of TCM to meet diverse customer needs[25] - The company aims to enhance its product range to cater to different customer demands[25] - The company is committed to optimizing its retail market layout to improve operational efficiency[43] Product Development and Innovation - New product development initiatives are underway, with an investment of approximately $5 million allocated for research and development in traditional Chinese medicine[11] - New product launches include Tong Ren Tang Angong Niu Huang Wan and Lingzhi Vitality Capsules, focusing on enhancing classic proprietary Chinese medicine[25] - The Group introduced several new products, including the Youth Prime Collection and Age-Defying Collection, expanding its product matrix significantly[104] - The Group is focused on developing new products to meet the growing market demand for health regulation and disease prevention[119] - The Group's focus on technological innovation led to the approval of Danggui Buxue Keli, enriching its variety of resources[104] Quality Control and Standards - The company emphasizes a strict quality control standard known as "Two No Compromises," ensuring no compromise on cost and labor in the processing of herbal medicines[21] - The company emphasizes a strict standard in the selection and use of medicinal materials, ensuring no compromise on quality[35] - Tong Ren Tang aims to maintain its commitment to quality and innovation, ensuring that its products meet the highest standards in the industry[21] Digital Engagement and E-commerce - The management discussion highlights a 30% increase in user data engagement through digital platforms, indicating a shift towards e-commerce[11] - The company aims to promote the international development of TCM and introduce new varieties to meet diverse customer needs[43] Investor Relations and Communication - The Group actively engaged in investor relations activities, including telephone conferences and investor meetings, to keep stakeholders informed about business operations[196] - The Group emphasized the importance of transparency and timely information disclosure to strengthen investor trust and understanding of its strategies[180] - Feedback from investors and analysts was collected and communicated to management to inform business strategy[180] - The Group's commitment to fair disclosure ensures that all investors receive equal access to material information[181] Challenges and Future Outlook - The Group is focusing on "Adjustment and Recovery, Cost Reduction and Efficiency Improvement" as operational keywords for 2025[71] - The mainland market's economic growth is under pressure, necessitating further exploration of long-term growth potential[96] - The company plans to strengthen its execution and internal management to navigate macroeconomic challenges and ensure steady operations[61] Cultural Promotion and Public Engagement - The first "Tong Ren Tang Day" was successfully launched, featuring health lectures, free consultations, and acupuncture skills training, promoting public welfare and brand culture[122] - The "9th Show Love and Care to Stroke Prevention" series included the "Beijing Tong Ren Tang Traditional Chinese Medicine Culture Carnival" and health seminars aimed at enhancing public health awareness[127] - The company participated in the "21st World Congress of Chinese Medicine" at UNESCO headquarters in Paris, promoting TCM culture globally in October 2024[43]

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 1,611,644, representing a 5.7% increase from HKD 1,524,945 in 2023[3] - Gross profit increased by 1.7% to HKD 1,065,329 compared to HKD 1,047,243 in the previous year[3] - Annual profit decreased by 10.4% to HKD 529,167 from HKD 590,587 in 2023[4] - Profit attributable to owners of the company was HKD 500,278, down 7.4% from HKD 540,393 in the prior year[4] - Basic and diluted earnings per share decreased to HKD 0.60 from HKD 0.65[4] - The company reported a net profit of HKD 529,167,000 for the year ended December 31, 2024, compared to HKD 590,587,000 in 2023, indicating a decrease of approximately 10.4%[27] - The company's operating profit for the year ended December 31, 2024, was HKD 576,924,000, compared to HKD 624,149,000 in 2023, reflecting a decline of approximately 7.5%[27] - The group's annual profit decreased by 10.4% to HKD 529.2 million from HKD 590.6 million in 2023, with a net profit margin of 32.8% compared to 38.7%[81] Assets and Liabilities - Cash and bank balances decreased by 23.5% to HKD 1,819,753 from HKD 2,378,693[3] - Total assets rose by 2.8% to HKD 4,559,525 from HKD 4,434,445[3] - Total liabilities decreased from HKD 413,755,000 in 2023 to HKD 313,091,000 in 2024, representing a reduction of approximately 24.4%[7] - Non-current liabilities decreased from HKD 83,837,000 in 2023 to HKD 77,737,000 in 2024, a decline of about 7.3%[7] - Current liabilities decreased significantly from HKD 329,918,000 in 2023 to HKD 235,354,000 in 2024, reflecting a decrease of approximately 28.7%[7] - The total liabilities as of December 31, 2024, were HKD 313,091,000, a decrease from HKD 413,755,000 as of December 31, 2023[28] - The total equity rose to HKD 4,246,434 in 2024, compared to HKD 4,020,690 in 2023, reflecting a growth of approximately 5.6%[3] Revenue Breakdown - Revenue from the Hong Kong segment was HKD 1,069,651,000, while the Mainland China segment generated HKD 139,371,000, and the Overseas segment contributed HKD 402,622,000 for the year ended December 31, 2024[27] - Revenue from Hong Kong increased to HKD 1,069,651, up 16.9% from HKD 915,323 in 2023[31] - The group’s revenue in mainland China reached HKD 139.4 million, marking a 7.8% increase from HKD 129.3 million in 2023[56] - Revenue from overseas markets was HKD 402.6 million, down 16.2% from HKD 480.3 million in 2023[55] Expenses and Costs - Distribution and selling expenses rose by 29.8% to HKD 300.2 million from HKD 231.3 million in 2023, accounting for 18.6% of revenue, up from 15.2%[77] - General and administrative expenses increased by 7.2% to HKD 191.8 million from HKD 179.0 million in 2023, representing 11.9% of revenue, similar to the previous year's 11.7%[78] - The cost of inventory recognized as expenses for 2024 is HKD 468,616,000, compared to HKD 392,093,000 in 2023, indicating an increase of approximately 19.5%[45] Dividends - The proposed final dividend per share is HKD 0.35, up from HKD 0.33 in the previous year[3] - The total dividend paid for 2024 is HKD 292,985,000, with a proposed final dividend of HKD 0.35 per share, an increase from HKD 0.33 per share in 2023[44][45] Market and Product Development - The company operates in the production, retail, and wholesale of traditional Chinese medicine and health products, indicating a focus on the healthcare sector[8] - The group has launched new products including the Tong Ren Tang Xian Ling and anti-aging NMN series, expanding its product matrix significantly[58] - The group is committed to modernizing traditional Chinese medicine through collaboration with universities and research projects, enhancing product quality and market recognition[59] - The group aims to continue product development in the health sector to meet market demands for body function regulation and disease prevention[64] Research and Collaboration - The group has established a research collaboration platform with the University of Macau, focusing on the registration of traditional Chinese medicine products in Macau[60] - The group received a grant of 12 million Macanese Patacas from the Macau government for research on classic formulas, enhancing their stability and bioavailability[61] - The group has accumulated a total of 75 patents, including those in mainland China and Hong Kong, and has filed 8 PCT international applications as of December 31, 2024[64] Corporate Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the financial performance for the year ending December 31, 2024[97] - Ernst & Young confirmed that the financial statements for the year ending December 31, 2024, are consistent with the audited consolidated financial statements[98] - The company has complied with the corporate governance code as of December 31, 2024[100]

F REN beijing tong ren tang chinese medicine company limited 北京同仁堂國藥有限公司 (Incorporated in Hong Kong with limited liability) (於香港註冊成立之有限公司) Stock code 股份代號：3613 公司資料 eights production and and special sell selection and spacific clarel problem of als relation and spell spare in als program and spel spares and spels and spares and spels a | --- | --- | |-----------------|-----------------------------------------| | | | | 董事 執行董事 | 香港證券登記處 香港中央證券登記有限公司 | | 顧海鷗(主席) | 香港灣仔 | | 王馳 | 皇后大道東183 號 | | 陳飛 | 合和中心 17 樓 | ...

Financial Performance - For the six months ended June 30, 2024, the company's revenue was HKD 664.5 million, a decrease of 18.2% compared to HKD 812.8 million in the same period of 2023[10] - The profit attributable to the company's owners for the same period was HKD 219.8 million, down 17.4% from HKD 266.0 million in 2023[10] - Gross profit for the first half of 2024 was HKD 451.8 million, representing a decline of 10.9% from HKD 507.0 million in the previous year[5] - The operating profit for the period was HKD 258.9 million, down 21.5% from HKD 330.0 million in the prior year[23] - The total comprehensive income for the period was HKD 234.8 million, down from HKD 291.9 million in the previous year[25] - The group reported a profit for the period of HKD 240,344 thousand, down from HKD 297,871 thousand in the previous year, indicating a decline of 19.3%[47] Assets and Liabilities - The total assets as of June 30, 2024, were HKD 4,277.8 million, a decrease of 3.5% from HKD 4,434.4 million at the end of 2023[5] - The total equity as of June 30, 2024, was HKD 3,969.6 million, a slight decrease of 1.3% from HKD 4,020.7 million at the end of 2023[5] - The debt ratio remained low at 3.4% as of June 30, 2024, compared to 3.3% as of December 31, 2023[20] - Total assets as of June 30, 2024, amounted to HKD 4,277,811 thousand, with total liabilities of HKD 308,259 thousand[48] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2024, was (303,857) thousand HKD, compared to 514,542 thousand HKD for the same period in 2023[34] - The net cash generated from investing activities was 1,350,425 thousand HKD for the six months ended June 30, 2024, compared to (351,043) thousand HKD for the same period in 2023[34] - The net cash used in financing activities was (320,226) thousand HKD for the six months ended June 30, 2024, compared to (322,997) thousand HKD for the same period in 2023[34] - The cash and cash equivalents at the end of the period were 1,721,491 thousand HKD, compared to 1,826,808 thousand HKD at the end of the same period in 2023[34] Market and Sales Performance - The retail sales value in Hong Kong for the first half of 2024 dropped by 6.6%, with the Chinese medicine retail category declining by 15.9%[10] - The company faced challenges due to a significant drop in consumer spending patterns among tourists and locals, impacting the retail environment in Hong Kong and Macau[10] - Revenue from external customers in Hong Kong was HKD 333,807 thousand, while revenue from mainland China and overseas was HKD 116,342 thousand and HKD 214,369 thousand, respectively[45] - Sales product revenue was HKD 642,311 thousand, down from HKD 790,029 thousand, representing a decline of 18.7%[41] Product Development and Expansion - The company launched several new products, including the Tong Ren Tang Xian Ling and the anti-aging NMN series, expanding its product matrix[12] - The company plans to enhance R&D investment in key products and expand its product matrix, focusing on anti-aging and Ling Zhi product lines[17] - The company aims to strengthen its new retail layout and accelerate the launch of new products, particularly in the Vietnamese market[17] - The company completed the production of multiple new registered traditional Chinese medicines and health foods, including Gui Zhi Fu Ling Wan and Ling Zhi Ginger Turmeric capsules[15] Employee and Management Information - The company had 779 employees as of June 30, 2024, with employee costs amounting to HKD 104.5 million, a decrease from HKD 107.1 million in 2023[18] - The total remuneration for key management personnel was HKD 4,160,000 for the six months ended June 30, 2024, an increase of 24% from HKD 3,347,000 for the same period in 2023[76] Governance and Risk Management - The group emphasizes the importance of risk management and internal control in its operations and governance processes[93] - The risk management framework is based on a "three lines of defense" model, including daily operational management, risk compliance management, and independent oversight[93] - The audit committee reviewed the unaudited condensed consolidated interim financial information for the six months ending June 30, 2024, with no disagreements on accounting treatment between the board and the audit committee[94] Shareholder Information - The major shareholders include Tongrentang Technology with 318,540,000 shares (38.05%) and Tongrentang Group Company with 600,000,000 shares (71.67%) of the issued share capital[82] - Tongrentang Holdings directly owns approximately 46.85% of Tongrentang Technology's issued share capital, equating to 318,540,000 shares[82]

Company Milestones and Events - In 2023, Beijing Tong Ren Tang Chinese Medicine Company Limited celebrated its 30th anniversary of international development and the 10th anniversary of its listing[13]. - The company opened a new retail outlet in Tseung Kwan O, Hong Kong, in April 2023[14]. - In June 2023, the company participated in a cultural event showcasing its royal medicine heritage and was awarded the "Quam IR Awards 2022 – Sustainable Development Category – Gold"[15]. - The company showcased its history and products during the "Tong Ren Tang's King of Medicine Festival" in August 2023, raising brand awareness[16]. - In November 2023, the company participated in the "6th China International Import Expo" as an exporter, highlighting its star products and first Chinese anti-aging product[19]. Financial Performance - Financial highlights for 2023 will be detailed in the annual report, with specific figures to be disclosed[20]. - Revenue for 2023 was HK$1,524,945,000, a decrease of 12% compared to HK$1,731,095,000 in 2022[23]. - Gross profit margin improved to 68.7% in 2023 from 66.4% in 2022[23]. - Profit for the year was HK$590,587,000, down from HK$691,293,000 in the previous year, representing a decline of 14.6%[23]. - Earnings per share decreased to HK$0.65 in 2023 from HK$0.77 in 2022, a drop of 15.6%[23]. - Non-current assets increased to HK$590,123,000 in 2023 from HK$542,208,000 in 2022, reflecting a growth of 8.8%[23]. - Current assets rose to HK$3,844,322,000 in 2023, up from HK$3,683,071,000 in 2022, an increase of 4.4%[23]. - Total assets reached HK$4,434,445,000 in 2023, compared to HK$4,225,279,000 in 2022, marking a growth of 4.9%[23]. - The current ratio improved to 11.7 in 2023 from 8.8 in 2022, indicating better liquidity[23]. - The dividend payout ratio increased to 51.1% in 2023 from 42.8% in 2022, indicating a higher return to shareholders[23]. Market and Product Development - The Group is focusing on market opportunities in Southeast Asia and enhancing product lines through increased R&D investment[35]. - The Group plans to actively adjust its business model and implement a dual-driven strategy, including establishing new retail outlets in Hong Kong and expanding international sales channels[40]. - The Group aims to pursue external growth through strategic investments, mergers, acquisitions, and partnerships with high-quality collaborators[40]. - The Group's focus on innovation and product upgrades aims to enhance its product line and improve its ability to respond to economic risks[46]. - The Group's strategic initiatives are designed to position it as a global leader in the field of Chinese medicine and macro-health[40]. Research and Development - The Group continues to explore technological innovation and R&D in traditional Chinese medicine[19]. - The Group has 61 authorized patents as of December 31, 2023, with 6 PCT international applications submitted[59]. - The Group has developed a range of products incorporating modern technology, such as collagen peptides from marine sources, enhancing digestibility and absorption[98]. - The Group has invested significantly in research and development, focusing on new product development to meet diverse market demands, particularly in disease prevention and body condition nourishment[190]. Marketing and Brand Recognition - The Group's marketing activities included outdoor advertisements and community exhibitions, significantly increasing brand awareness and consumer engagement[63][64]. - The Group received multiple awards, including the "Excellence Award of the TCM Brand" in Hong Kong and the "Most Influential Brand Award in Asia" in Singapore, highlighting its strong brand recognition[67]. - The Group's marketing strategies adapted to changing market conditions, including themed campaigns for health awareness and community engagement post-pandemic[65][66]. Employee and Corporate Governance - Staff costs for the year amounted to HK$245.7 million, reflecting a 12.1% increase from HK$219.1 million in 2022, with a total of 798 employees as of December 31, 2023[68]. - The Group emphasizes a people-oriented approach, ensuring a friendly and inclusive working environment to enhance employee retention and corporate competitiveness[196]. - The Group provides comprehensive medical check-ups and basic medical, dental, and accident insurance for employees, along with free Chinese medicine consultation services for their direct relatives[198]. - The Group adheres to a principle of equal pay for equal work, providing equal development opportunities regardless of race, gender, age, or religion[199]. Environmental, Social, and Governance (ESG) Initiatives - The Group's 2023 Environmental, Social and Governance Report outlines its policies and performance related to corporate social responsibility and sustainable development[116]. - The Group is actively implementing environmental management measures to reduce the operational burden on the environment and is identifying climate-related risks and opportunities[113][114]. - The Group has established a clear and effective governance system to foster stable and sustainable corporate development, focusing on environmental, social, and governance (ESG) aspects[122]. - The Group emphasizes the importance of supply chain stability for business development, with established "Procurement Management Rules" and "Suppliers Management Rules" to guide supplier assessment[175]. Quality Control and Compliance - The Group implements quality management practices, including Good Manufacturing Practice (GMP) and Hazard Analysis and Critical Control Points (HACCP), to maintain product safety and quality[137]. - The Group has established a comprehensive quality management system to ensure product testing accuracy and compliance with relevant laws[131]. - The Group has implemented a comprehensive quality control strategy, including guidelines for material processing, production, and product inspection, to maintain product safety and quality[168]. - The Group conducts comprehensive internal quality inspections on each batch of finished products to ensure compliance with safety and quality standards in Hong Kong[166]. Risk Management - The Group implements a risk management framework consisting of five major components and the "Three Lines of Defense" model to identify, evaluate, and manage significant risks[124]. - Major risks related to ESG include regulatory risks in the Chinese medicine industry and food and health products, which the Group mitigates by enhancing compliance awareness and improving management systems[128]. - The Group has established management procedures for quality risk reporting and product recall to safeguard the quality of marketed products[131]. Customer Engagement and Feedback - Customer feedback is collected through various channels, including retail staff, customer service hotlines, and social media, with mechanisms in place to handle complaints appropriately[138]. - The Group has established measures for additional paid holidays, including marriage leave and compassionate leave, to ensure employees have adequate rest[199].

同仁堂国药（3613） 更新报告 买入 20 24年 3月22日 中国内地销售重新起航，2024有望恢复强劲增长 高小迪  经济复苏存在落差，中国内地销售明显减少：2023 年全年公司实现 852-25321960 收入15.25亿港元，同比下降11.9%。分地区看，香港地区销售收入9.2 xiaodi.gao@firstshanghai.com.hk 亿港元，增长 10.8%。海外地区收入 4.8 亿港元，同比增长 1.8%。中国 但玉翠 内地收入 1.3 亿港元，同比下降 70.2%。中国内地收入锐减的主要原因 852-25321956 是 2022 年底疫情放开，经销商大量进货灵芝孢子粉补充库存，导致高 基数。2023年实际经济复苏略有落差，经销商持续消化库存，导致进货 tracy.dan@firstshanghai.com.hk 需求锐减。公司2023年整体毛利率提升2.3pts，达68.7%。公司营销活 动重新展开，销售费用率提升至 15.2%，租金、银行手续费的同步上涨 主要数据 也导致行政费用率提升至 11.7%。费用率恢复至疫情前水平。公司 2023 年净利润5.9亿港元，下降4.6%，归母 ...

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 1,524,945, a decrease of 11.9% compared to HKD 1,731,095 in 2022[2] - Gross profit for the same period was HKD 1,047,243, down 8.9% from HKD 1,150,140 in the previous year[2] - Annual profit decreased by 14.6% to HKD 590,587 from HKD 691,293 in 2022[2] - Profit attributable to the company's owners was HKD 540,393, a decline of 16.3% from HKD 645,875 in the prior year[2] - Basic and diluted earnings per share were HKD 0.65, down from HKD 0.77 in 2022[2] - The operating profit for the year was HKD 624,149, with a net profit of HKD 590,587 after tax expenses of HKD 97,203[16] - The group’s annual profit decreased by 14.6% to HKD 590.6 million, with a net profit margin of 38.7%[65] - Basic earnings per share for 2023 is HKD 0.65, down from HKD 0.77 in 2022, indicating a decline of about 15.6%[35] Revenue Breakdown - Total revenue for the year ended December 31, 2023, was HKD 1,882,301, with external customer revenue contributing HKD 1,524,945[16] - The Hong Kong segment generated revenue of HKD 1,171,231, while the Mainland China segment contributed HKD 228,634, and the Overseas segment accounted for HKD 482,436[16] - Revenue from major customer A was 273,456 thousand HKD in 2023, down from 411,160 thousand HKD in 2022, a decrease of 33.5%[23] - Revenue from Hong Kong increased to 915,323 thousand HKD in 2023, up 10.8% from 826,032 thousand HKD in 2022[26] - Revenue from overseas markets was HKD 480.3 million, reflecting a growth of 1.8% from HKD 471.6 million in 2022[47] - Revenue from the mainland China market plummeted by 70.2% to HKD 129.3 million in 2023, down from HKD 433.5 million in 2022[47] Assets and Liabilities - Cash and bank balances increased by 6.0% to HKD 2,378,693 from HKD 2,243,963 in the previous year[2] - Total assets rose by 5.0% to HKD 4,434,445 compared to HKD 4,225,279 in 2022[2] - Total liabilities for the company were reported at 413,755 thousand HKD, reflecting a significant increase from previous periods[20] - Trade receivables decreased significantly to HKD 395,244,000 in 2023 from HKD 923,230,000 in 2022, a reduction of about 57%[38] - The total inventory as of December 31, 2023, is HKD 1,011,649,000, compared to HKD 469,784,000 in 2022, indicating an increase of approximately 115%[37] Expenses and Costs - Employee costs increased by 12.1% to HKD 245.7 million, reflecting the company's efforts to attract and retain talent[56] - Distribution and selling expenses rose by 23.6% to HKD 231.3 million, accounting for 15.2% of revenue, up from 10.8% the previous year[60] - General and administrative expenses increased by 15.9% to HKD 179.0 million, representing 11.7% of revenue, up from 8.9%[61] - The cost of inventory recognized as cost of sales for 2023 is HKD 392,093,000, down from HKD 505,359,000 in 2022, representing a decrease of approximately 22.3%[39] Dividends and Shareholder Information - Total dividends paid in 2023 amount to HKD 276,243,000, with a dividend per share of HKD 0.33, compared to HKD 443,663,000 and HKD 0.53 per share in 2022[36] - The proposed final dividend for the year ending December 31, 2023, is HKD 0.33 per ordinary share, consistent with the previous year[74] - The final dividend will be presented for shareholder approval at the annual general meeting on May 31, 2024, and if approved, will be paid on June 11, 2024[74] Corporate Governance and Compliance - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[9] - The financial statements for the years ended December 31, 2022, and December 31, 2023, have been audited without any reservations by independent auditors[9] - The company has adhered to the corporate governance code as stipulated in the listing rules as of December 31, 2023[79] - The audit committee, composed of three independent non-executive directors, has reviewed the company's accounting policies and financial reporting procedures for the year ending December 31, 2023[77] Strategic Initiatives and Future Outlook - The company plans to expand its market presence through retail and wholesale of traditional Chinese medicine products and health supplements in both domestic and international markets[16] - The company is actively evaluating new product development and technology advancements to strengthen its market position and drive future growth[16] - The company aims to enhance product quality management and technological innovation to optimize production efficiency and resource reserves[48] - The group aims to become a leader in the global traditional Chinese medicine health sector, leveraging government support and increasing health awareness among consumers[55]

Financial Performance - Revenue for the first half of 2023 reached HKD 812.8 million, a 29.8% increase compared to HKD 626.4 million in 2022[8] - Profit attributable to owners of the company was HKD 266.0 million, up 23.9% from HKD 214.6 million in the previous year[8] - Gross profit for the first half of 2023 was HKD 507.0 million, reflecting a 17.2% increase from HKD 432.5 million in 2022[3] - The company reported a pre-tax profit of HKD 354.0 million, which is a 22.8% increase from HKD 288.4 million in 2022[3] - The group reported revenue of HKD 812.8 million for the six months ended June 30, 2023, an increase from HKD 626.4 million in the same period of 2022, representing a growth of 29.7%[21] - Gross profit for the same period was HKD 507.0 million, up from HKD 432.5 million, indicating a gross margin improvement[21] - The operating profit increased to HKD 330.0 million from HKD 291.9 million, reflecting a growth of 13.0%[21] - The company reported a profit of 297,871 thousand HKD for the six months ended June 30, 2023, representing a 25% increase from 238,123 thousand HKD in the same period of 2022[22] - Total comprehensive income for the period was 291,871 thousand HKD, up from 226,236 thousand HKD, indicating a growth of approximately 29% year-over-year[22] - The company's profit attributable to owners for the six months ended June 30, 2023, was HKD 266,040,000, an increase of 24% from HKD 214,638,000 in 2022[50] - Basic earnings per share for the first half of 2023 was HKD 0.32, compared to HKD 0.26 for the same period in 2022, reflecting a 23% increase[50] Cash and Liquidity - Cash and bank balances as of June 30, 2023, totaled HKD 2,448.1 million, a 9.1% increase from HKD 2,244.0 million at the end of 2022[3] - The group maintained a cash and bank balance of HKD 2,448.1 million as of June 30, 2023, compared to HKD 2,244.0 million at the end of 2022[16] - The current ratio improved to 12.5 as of June 30, 2023, from 8.8 at the end of 2022, indicating strong liquidity[16] - For the six months ended June 30, 2023, the net cash generated from operating activities was HKD 514,542,000, an increase of 45% compared to HKD 355,713,000 in 2022[26] - The cash and cash equivalents at the end of the period were HKD 1,826,808,000, a substantial increase from HKD 696,414,000 at the end of the previous year[26] - The company paid dividends totaling HKD 276,243,000, compared to HKD 234,358,000 in the previous year, marking a 17.8% increase[26] Assets and Liabilities - The company's total assets as of June 30, 2023, were 4,106,319 thousand HKD, a decrease of about 2.8% from 4,225,279 thousand HKD at the end of 2022[23][24] - Total liabilities decreased to 366,953 thousand HKD, down 24.5% from 486,486 thousand HKD at the end of 2022[24] - Total trade receivables as of June 30, 2023, amounted to HKD 487,642,000, down 48% from HKD 943,514,000 at the end of 2022[54] - The net value of property, plant, and equipment decreased slightly to HKD 204,278,000 as of June 30, 2023, from HKD 206,681,000 at the beginning of the year[52] - Trade payables to third parties as of June 30, 2023, were HKD 85,062,000, compared to HKD 135,133,000 at the end of 2022[57] Market Presence and Strategy - The company opened a new retail outlet in Tseung Kwan O Plaza to enhance its presence in the Hong Kong retail market[10] - The company is focusing on innovative marketing strategies and expanding online and offline sales channels to increase market share[9] - The company participated in the 133rd China Import and Export Fair to strengthen its global customer base and promote key products[10] - The group plans to enhance its product pipeline and expand sales channels, focusing on the integration of traditional Chinese medicine and health products[14] - The company plans to expand its market presence through increased retail and wholesale activities in overseas regions, including Macau[38] - The company continues to invest in new product development and technology to enhance its competitive edge in the herbal medicine sector[38] Research and Development - Ongoing collaboration with international institutions for research on key product safety and efficacy[11] - The group has established a research collaboration with Hong Kong Baptist University to develop innovative Chinese medicine products[12] Employee and Management Costs - Employee costs for the period were HKD 107.1 million, up from HKD 92.8 million in 2022, reflecting the increase in workforce to 789 employees[15] - Total remuneration for key management personnel increased to HKD 3,347,000 in the first half of 2023, up from HKD 2,913,000 in 2022, representing a growth of approximately 14.8%[64] - The pension cost for the defined contribution plan rose to HKD 340,000 in the first half of 2023, compared to HKD 152,000 in the same period of 2022, marking an increase of 123.7%[64] Shareholder Information - Major shareholders include Tongrentang Technology with 318,540,000 shares, representing 38.05% of the issued share capital, and Tongrentang Group Company with 600,000,000 shares, accounting for 71.67%[68] - Tongrentang Holdings directly holds approximately 46.85% of Tongrentang Technology's issued share capital, thus deemed to own 318,540,000 shares of the company[68] - The total number of shares held by directors and key management personnel includes 430,000 shares and 43,000 shares respectively, indicating their vested interest in the company[66] Governance and Compliance - The company has established a non-competition agreement with major shareholders to prevent them from engaging in certain business activities outside mainland China without prior written consent[70] - The company is committed to evaluating new business opportunities related to restricted businesses and has established governance measures to address potential conflicts of interest[71] - The company will disclose the independent non-executive directors' review of compliance with the non-competition agreement in its annual report[71] - The company has established a Competition Executive Committee to monitor distribution channels and product offerings related to Ganoderma and its spores, conducting quarterly checks[72] - The company has adopted a risk management and internal control framework based on a "three lines of defense" model to enhance its risk management capabilities[76] - The Audit Committee has reviewed the unaudited condensed interim financial information for the six months ended June 30, 2023, with no disagreements on accounting policies between the Board and the Audit Committee[77]

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責 ， 對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明 ， 並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任 。 BEIJING TONG REN TANG CHINESE MEDICINE COMPANY LIMITED 北 京 同 仁 堂 國 藥 有 限 公 司 （ 於 香 港 註 冊 成 立 之 有 限 公 司 ） （股份代號： 3613） 2023 年中期業績公告 北京同仁堂國藥有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬公 司截至 2023 年 6 月 30 日止六個月期間之未經審計業績。本公告列載本公司 2023 年中期報告 全文，乃符合香港聯合交易所有限公司（「聯交所」）證券上市規則中有關中期業績初步公 告附載的資料之要求。本公司 2023 年中期報告的印刷版本將於 2023 年 9 月 3 ...

Company History and Reputation - Beijing Tong Ren Tang has a history of over 354 years, founded in 1669, and has been the exclusive provider of Chinese medicine to the royal family for 188 years[3]. - The company has maintained a strong brand reputation, overcoming various challenges throughout its history, including recessions and invasions[3]. - Beijing Tong Ren Tang's products are recognized for their unique formulas and superior crude materials, contributing to their significant market presence[3]. Quality and Manufacturing Commitment - The company emphasizes quality, stating "Never cut corners on labour and quality," which reflects its commitment to meticulous manufacturing processes[3]. - The Group's production and R&D base in Tai Po, Hong Kong, obtained GMP, ISO22000, and HACCP certifications, ensuring comprehensive quality management throughout the product lifecycle[53]. - The Group adheres to strict quality management principles, implementing targeted internal procedures such as "Product Quality Standards" and "Regulations on the Reporting and Monitoring of Adverse Drug Reactions" to maintain high product quality[151]. Financial Performance - Financial highlights indicate a robust performance, although specific revenue figures are not detailed in the provided content[3]. - Revenue for 2022 reached HK$1,731,095,000, a 11.2% increase from HK$1,556,158,000 in 2021[30]. - Profit for the year was HK$691,293,000, up 6.1% from HK$651,543,000 in 2021[30]. Product Development and Innovation - The annual report highlights a focus on ten distinct medicinal prescriptions, including Dispersal, Dredging, and Supplement, with 420 kinds of medicine recorded[3]. - The management discussion emphasizes ongoing innovation in product development and technology[3]. - New product developments include Chinese medical beauty treatment and anti-aging treatment, aimed at expanding healthcare business[36]. Market Expansion and Distribution - The company aims to expand its distribution networks and enhance its product offerings in the coming years[3]. - Opened multiple retail outlets, including the first Chinese medicine health and wellness center in the Netherlands and three retail outlets in New Zealand[9]. - Expanded into the United States market with the opening of three Chinese medical clinics[14]. Environmental, Social, and Governance (ESG) Practices - The company is committed to environmental, social, and governance (ESG) practices, as noted in its ESG report[3]. - The Group's 2022 Environmental, Social, and Governance Report emphasizes the importance of stakeholder feedback for enhancing corporate sustainability performance[103]. - The Group's commitment to sustainable development strategies will be based on its business development and will aim to create a sustainable social and economic system[104]. Awards and Recognition - Awarded "The Best Listed Company Award" and Chairman Ding Yong Ling recognized as "Outstanding Entrepreneur of the Year 2022"[20]. - The Group received multiple awards in 2022, including the "Most Valuable Brand in Guangdong-Hong Kong-Macao Greater Bay Area" and "Outstanding Entrepreneur of the Year 2022"[87]. Risk Management and Compliance - The Group has implemented a clear risk management and internal control system to identify and respond to relevant risks and opportunities[110]. - Major risks include regulatory supervision of TCM products, with measures in place to enhance compliance and quality control systems[116]. - The Audit Committee oversees the Group's compliance policies and practices, while the Board reviews compliance annually[119]. Employee Welfare and Development - The Group provides comprehensive medical and dental insurance, as well as free TCM consultation services for employees and their direct relatives[177]. - The Group emphasizes talent sustainability and career planning, supporting employee development through a structured promotion system and regular performance appraisals[200]. - The Group conducts regular health and safety inspections at its production and R&D base to ensure compliance with safety standards[193]. Community Engagement and Social Responsibility - Actively participated in health awareness initiatives, such as the "Care for Stroke Prevention" Tram Day in Hong Kong[18]. - Donated 100,000 boxes of Huoxiang Zhengqi Pian worth approximately HK$6.0 million to support COVID-19 efforts[22]. - The Group organizes community activities to better understand and respond to community needs[127].