TRT(SH:600085) 2 1 Shi Ji Jing Ji Bao Dao·2025-04-14 01:11Core Viewpoint - Tong Ren Tang reported a revenue of 18.597 billion yuan in 2024, a year-on-year increase of 4.12%, but the net profit attributable to shareholders decreased by 8.54% to 1.526 billion yuan, marking the first decline in five years [2][4] Financial Performance - The company's revenue for the reporting period was 18.597 billion yuan, with a year-on-year increase of 4.12% [4] - The net profit attributable to shareholders was 1.526 billion yuan, a decrease of 8.54% year-on-year [2][4] - The net profit excluding non-recurring items was 1.482 billion yuan, down 10.55% year-on-year [2][4] - Operating cash flow fell by 59.29% to 761 million yuan, the lowest in ten years [2][8] Margin and Cost Analysis - The gross margin for the pharmaceutical industrial segment decreased by 3.22 percentage points to 43.75%, while the pharmaceutical commercial segment's gross margin fell by 3.72 percentage points to 27.39% [2][4] - The increase in operating costs was attributed to rising raw material prices, with raw material costs accounting for 66.80% of total costs, increasing by 23.07% year-on-year [4] - Specific product categories, such as cardiovascular and tonic products, saw significant cost increases, with gross margins dropping below 50% for the first time in five years [4][5] Market Position and Competition - Tong Ren Tang was included in the first batch of China's consumer brand list released by the Ministry of Industry and Information Technology [3] - The market for An Gong Niu Huang Wan has become increasingly competitive, with over 120 companies approved to produce it [6] Research and Development - The company's R&D expenditure accounted for 2.20% of revenue, which is considered low compared to industry averages, indicating a reliance on traditional products and insufficient innovation investment [8] - The pharmaceutical industrial segment's R&D investment is among the top in the traditional Chinese medicine manufacturing industry [8] Brand Reputation and Challenges - The company faced a trust crisis due to product quality issues, including a significant mercury content violation in its Ren Dan product [9] - Complaints regarding trademark misuse and counterfeit products have been prevalent, despite the company's efforts to address these issues [9] Strategic Developments - The company is enhancing its e-commerce strategy and has increased its self-operated pharmacy count to 1,251, with a focus on expanding in lower-tier cities [9][10] - The retail pharmacy segment generated 81.87% of total revenue, with a significant portion of pharmacies also providing medical services [10]