Beijing Tongrentang Co Ltd

Tong Ren Tang released its 2026 interim report. Total operating revenue was 8.379 billion yuan, down 14.23% year-on-year. Net profit attributable to the parent company was 726 million yuan, down 23.19% year-on-year. Net cash inflow from operating activities was 1.728 billion yuan, down 11.53% year-on-year. The company's asset-liability ratio was 29.35%, down 4.36 percentage points from the same period last year. Gross margin was 42.37%, down 1.92 percentage points from the same period last year. Return on equity was 5.33%, down 1.71 percentage points from the same period last year. Diluted earnings per share were 0.53 yuan, down 23.22% year-on-year.

In the first half of 2026, the A-share Shenwan pharmaceutical and biotech sector remained sluggish, with the index falling 14.11% year-to-date, but the innovative drug supply chain bucked the trend. Traditional pharma companies faced operational pressure: Pian Zai Huang reported its first-ever decline in both revenue and net profit since listing, while Tong Ren Tang saw its revenue drop for the first time in five years. In contrast, BeiGene achieved its first full-year profit, and Hengrui Medicine's innovative drug sales exceeded 60% of total revenue for the first time. In the first half, total out-licensing deal value for domestic innovative drugs reached 99.7 billion dollars, roughly double the full-year total for 2024. This included an 18.5 billion dollar deal between AstraZeneca and CSPC Pharmaceutical Group, and an 8.5 billion dollar deal between Eli Lilly and Innovent Biologics. On the industrial capital front, 145 A-share pharma and biotech companies implemented share buybacks in the first half, totaling over 13.3 billion yuan, with innovative drug and CXO firms leading the charge. The secondary market's valuation logic is shifting from pipeline expectations to commercialization and overseas delivery. In the last week of June, the Shenwan pharmaceutical and biotech index rebounded 10.53% in a single week, while the innovative drug segment surged 17.06%.