In 2025, TongRenTang Co., Ltd. (TongRenTang), a well-known Chinese medicine company based in Beijing, experienced a year-on-year decline in operating income and net profit attributable to the parent company, with a 22.07% drop in net profit. This marked the first time in five years that TongRenTang saw simultaneous decreases in both operating income and net profit. TongRenTang attributed this decline to a slowdown in market demand and intensified industry competition.
According to the “2025 Annual Report” released by TongRenTang, the company’s consolidated operating income was 17.256 billion yuan, a decrease of 7.21% compared to the previous year. Additionally, the total profit decreased by 27.76%, net profit attributable to the shareholders of the listed company fell by 22.07%, and the adjusted net profit excluding non-recurring gains and losses declined by 22.57%. Furthermore, the basic earnings per share dropped by 22.10%.
The report also detailed the net profit and adjusted net profit attributable to the shareholders of the listed company for each quarter of 2025, showing a downward trend in both figures throughout the year. In the fourth quarter, the adjusted net profit recorded a loss of 15.3982 million yuan.
The annual report attributed the losses to various factors, primarily the slowdown in market demand and intensified industry competition.
As a prominent traditional Chinese medicine brand, TongRenTang’s main products cater to the consumer-grade market for Chinese patent medicines. In response to the declining performance, “Health Wisdom Bureau,” a subsidiary of Beijing Health Navigation Technology Co., stated that the overall situation of the Chinese patent medicine industry in 2025 was challenging. Despite the price of TongRenTang’s leading product, Angong Niuhuang Wan, remaining at 860 yuan at retail pharmacies, its secondary market price has dropped to around five to six hundred yuan. Among TongRenTang’s over 400 Chinese patent medicine products, Angong Niuhuang Wan has consistently been a flagship product. Additionally, as sales decreased, TongRenTang’s inventory reached a book value of 10.617 billion yuan by the end of 2025, accounting for over 35% of total assets, with an inventory turnover period of 389 days, indicating significant pressure to clear the stock. By the end of 2025, TongRenTang also increased its provision for inventory valuation decline by 140 million yuan, a 21.06% increase from the beginning of the year.
“Health Wisdom Bureau” suggested that TongRenTang should be more alert to the changing market conditions.
Public records show that TongRenTang (TongRenTang Chinese Medicine) is a well-established brand in the Chinese traditional medicine industry, founded in Beijing in 1669 during the eighth year of the Kangxi Emperor’s reign in the Qing Dynasty. With its core business in pharmaceuticals, TongRenTang spans across retail, health, and wellness sectors, establishing itself as a distinguished name in the field of traditional Chinese medicine.