Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK) Bundle
Founded in 1669, Beijing Tong Ren Tang Chinese Medicine Company Limited carries a legacy of over 350 years and a royal pedigree dating to 1723 when it served the imperial court for 188 years, a heritage that underpins its global expansion-establishing an overseas platform in Hong Kong in 2004, listing on the GEM in May 2013 and moving to the Main Board in February 2018-and today operating roughly 140 branches across 29 countries and regions; its ownership remains concentrated with Beijing Tong Ren Tang and Tong Ren Tang Technologies holding 33.62% and 38.05% respectively, while its publicly traded shares (3613.HK) reflect a market capitalization of about HKD 7.12 billion as of December 19, 2025; commercially the company reported HKD 1.61 billion in revenue and HKD 500.3 million in net income in 2024 (around a 31% net margin), operates through Hong Kong, Mainland China and Overseas segments, sells proprietary herbal formulations, OTC remedies and consultation services, invests c. 3.5% of revenue in R&D (2022) to modernize TCM, and leverages retail, wholesale and strategic partnerships to monetize its trusted heritage and premium brand-read on to explore its history, ownership, mission, operations and the economics behind its enduring business model
Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK): Intro
History Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK) traces its origins to 1669. Key milestones:- 1669 - Founded in Beijing; established as a purveyor of traditional Chinese medicine (TCM).
- 1723 - Appointed imperial supplier; served the royal family for 188 years (until the late Qing era), greatly enhancing brand prestige.
- 2004 - Launched its overseas platform, Tong Ren Tang Chinese Medicine (TRTCM), in Hong Kong to coordinate international operations.
- May 2013 - TRTCM listed on the Hong Kong Growth Enterprise Market (GEM).
- February 2018 - Transferred to the Main Board of the Hong Kong Stock Exchange, reflecting scale and stability.
- As of late 2025 - Operates approximately 140 branches (pharmacies, TCM clinics, health centers) across 29 countries and regions.
- Listed entity: 3613.HK (Tong Ren Tang Chinese Medicine Company Limited, Hong Kong listed arm).
- Parent / controlling group: Beijing Tong Ren Tang Group (the historic state-affiliated group that oversees core production, R&D and heritage brands).
- Public float: shares listed on Hong Kong Stock Exchange Main Board since Feb 2018; trading under ticker 3613.HK.
- Mission: To preserve and modernize traditional Chinese medicine, ensuring safety, efficacy and global accessibility while maintaining centuries-old quality standards.
- Positioning: Heritage TCM leader leveraging historical credibility (imperial supplier lineage), industrial-scale manufacturing, clinical services and modern retail/distribution.
- Manufacturing - GMP-standard production of proprietary Chinese medicine granules, decoction pieces, finished products and health supplements at multiple production facilities.
- Retail & Clinics - Company-operated pharmacies and TCM clinics providing diagnostics, prescriptions, decoctions and ready-made TCM products.
- Wholesale & Distribution - Supplying hospitals, pharmacies and third-party retailers domestically and abroad.
- E-commerce & Omnichannel - Direct-to-consumer online sales via company platforms and major third-party marketplaces; digital prescriptions and health services.
- International Subsidiaries & Franchising - TRTCM and regional partners operating stores and clinics in overseas markets (about 29 territories as of late 2025).
- R&D & Quality Control - Investment in clinical research, standardization of herbal extracts and quality assurance to meet regulatory requirements across markets.
- Retail sales (company stores and franchise/pharmacy partners) - in-person purchases of TCM products and clinic services.
- Manufactured product sales - bulk sales of granules, decoction pieces and packaged TCM products to distributors and healthcare institutions.
- Clinic services - consultation fees, herbal prescriptions, decoction preparation and allied health services.
- Export & international sales - branded products sold through TRTCM subsidiaries, distributors and retail partners across ~29 countries/regions.
- Online sales & cross-border e-commerce - accelerating channel for domestic and overseas consumers seeking branded TCM.
- Licensing & brand cooperation - co-branded products, OEM and licensing agreements leveraging Tong Ren Tang's heritage.
| Item | Data / Date |
|---|---|
| Founding year | 1669 |
| Imperial supplier appointment | 1723 (served royal family for 188 years) |
| TRTCM established (Hong Kong) | 2004 |
| GEM listing | May 2013 |
| Main Board transfer (HKEX) | February 2018 |
| Branches worldwide (pharmacies/clinics/health centers) | ~140 (as of late 2025) |
| Countries / regions of presence | 29 (as of late 2025) |
| Hong Kong ticker | 3613.HK |
Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK): History
Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK) traces its corporate lineage to the historic Tong Ren Tang brand, founded in 1669. The listed company has evolved from traditional retail and manufacturing of Chinese patent medicines into a modern, vertically integrated enterprise spanning research & development, retail, e-commerce and international distribution. Its governance and strategic choices are strongly shaped by a concentrated ownership base and long-standing brand stewardship.- Primary shareholders as of late 2025:
- Beijing Tong Ren Tang - 33.62%
- Tong Ren Tang Technologies Co. Ltd. - 38.05%
- Public float on the Hong Kong Stock Exchange (3613.HK) - remaining shares
- Market capitalization: approximately HKD 7.12 billion (as of 19 Dec 2025)
- Investor base: mix of institutional and individual investors, with steady institutional ownership supporting liquidity and governance continuity
| Item | Data |
|---|---|
| Ticker | 3613.HK |
| Largest shareholder | Beijing Tong Ren Tang - 33.62% |
| Second largest shareholder | Tong Ren Tang Technologies Co. Ltd. - 38.05% |
| Market capitalization | HKD 7.12 billion (19 Dec 2025) |
| Listing venue | Hong Kong Stock Exchange |
- Ownership implications:
- Stable major stakes provide continuity in strategic direction and board governance.
- Major shareholders steer international expansion, new product development, and brand licensing decisions.
- Public float ensures market discipline and access to capital while preserving family/brand control.
Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK): Ownership Structure
Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK) traces its mission to 'inherit the essence of traditional Chinese medicine, innovate with modern science and technology, and provide high-quality health products and services to the global community.' The company foregrounds integrity, innovation, quality and service while committing to preserving TCM culture, customer-centric product and service design, social responsibility and sustainable development. Mission Statement, Vision, & Core Values (2026) of Beijing Tong Ren Tang Chinese Medicine Company Limited.- Core mission: integrate TCM heritage with modern R&D and global distribution.
- Values: integrity, innovation, quality, service, customer-centricity, social responsibility, sustainability.
- Retail & franchise pharmacies - primary sales channel (physical stores and in-mall outlets).
- Manufacturing & wholesale - production of traditional formulations, granules, patented TCMs and OEM for third parties.
- Clinical services & TCM clinics - prescription and consultation services that drive prescription sales.
- Online & omnichannel - direct-to-consumer e-commerce, platform sales and digital consultation.
- Export & licensing - international distribution, cross-border e-commerce and IP/licensing of proprietary formulas.
| Metric | Value (FY2023) |
|---|---|
| Revenue | RMB 12.7 billion |
| Net profit (attributable) | RMB 1.4 billion |
| Gross margin (group) | ~60% |
| Operating margin | ~18% |
| Market capitalization (approx., HKD) | HKD 22-30 billion |
| Store network | ~3,000+ retail outlets and franchises (domestic + overseas) |
| R&D spend | ~RMB 220 million (≈1.7% of revenue) |
- Retail & franchises: 55% (RMB ~7.0bn)
- Manufacturing & wholesale: 25% (RMB ~3.2bn)
- Online & digital sales: 10% (RMB ~1.3bn)
- International sales & licensing: 10% (RMB ~1.2bn)
- Largest shareholder: Beijing Tong Ren Tang Group (state-owned enterprise) - ~38-40% (controlling stake providing strategic direction and access to legacy assets).
- Free float & institutional investors: ~45-50% (H-share public holders, Hong Kong and international funds).
- Management & directors: ~5-7% combined (long-term incentives and board-aligned holdings).
- State linkage: benefits from heritage branding, regulatory relationships and supply-chain partnerships with domestic TCM institutions.
Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK): Mission and Values
Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK) is a heritage Chinese medicine firm that combines traditional formulations with modern manufacturing and distribution to serve consumer health needs across Hong Kong, Mainland China and global markets. Its stated mission emphasizes preserving classical Traditional Chinese Medicine (TCM) knowledge, ensuring product safety and efficacy, and expanding access to TCM through integrated retail, clinical and research capabilities. How It Works- Segment structure: the company operates through three main segments - Mainland China, Hong Kong, and Overseas - each tailored to local regulatory, clinical and consumer preferences.
- Product portfolio: a comprehensive range including proprietary herbal formulations, over-the-counter (OTC) remedies, premium health supplements, concentrated granules, and classical decoctions to address diverse consumer needs.
- Services: Chinese medical consultation and treatment services are provided via affiliated clinics and in-store practitioners to reinforce clinical authenticity and customer loyalty.
- Retail footprint: a multi-channel retail network of branded pharmacies, TCM clinics and health centers in Hong Kong, Mainland China and international markets to ensure accessibility.
- R&D and modernization: investment in research and development to modernize TCM while preserving traditional practices - approximately 3.5% of total revenue was allocated to R&D in 2022.
- Supply chain and quality control: a robust supply chain sourcing raw materials from multiple provinces, plus proprietary cultivation bases to stabilize supply and control herb quality.
- Retail sales: revenues from company-owned stores and franchised pharmacies selling proprietary and third‑party TCM products.
- Wholesale and distribution: bulk supply of prepared medicines and concentrated granules to hospitals, clinics and third‑party retailers.
- Clinical services: fees from clinical consultations, diagnostic services and in‑clinic treatments at Tong Ren Tang clinics.
- Premium product lines: higher‑margin health supplements and specialty formulations marketed to affluent and aging consumers.
- Export and licensing: sales to overseas markets and licensing of formulations or brand partnerships in selected territories.
| Metric | 2022 Figure (approx.) |
|---|---|
| Total revenue | RMB 6.5 billion |
| R&D spend (3.5% of revenue) | RMB 227.5 million |
| Net profit (approx.) | RMB 650 million |
| Gross margin (approx.) | 38% |
| Retail outlets (global) | ~1,600 stores and clinics |
| Segment revenue mix | Mainland China 75% | Hong Kong 15% | Overseas 10% |
| Own cultivation bases | Proprietary herb farms across multiple provinces (several thousand mu) |
- Market positioning: leverages a 350‑year brand legacy to command premium pricing for heritage formulations and branded health products.
- Channel strategy: omnichannel sales combining physical stores, clinic‑based distribution, e‑commerce and cross‑border logistics to reach domestic and overseas consumers.
- Quality assurance: end‑to‑end quality controls from seed selection and cultivation to GMP manufacturing and post‑market pharmacovigilance.
- R&D focus areas: standardization of classical formulas, modern extraction and dosage forms (granules, capsules), clinical validation and digital health integration.
- Classical preparations: signature multi‑herb prescriptions based on canonical TCM formulas.
- OTC remedies: cold remedies, digestive aids, tonics and pain relief products sold through pharmacies and supermarkets.
- Premium supplements: concentrated extracts and anti‑aging or immune‑support formulations targeted at middle‑aged and elderly demographics.
- Clinical treatments: personalized herbal prescriptions, pulse diagnosis, acupuncture referrals and follow‑up care at branded clinics.
- Diversified sourcing: raw materials procured from multiple provinces (e.g., Inner Mongolia, Gansu, Yunnan) to mitigate regional crop risk.
- Vertical integration: cultivation bases and contracted farms to secure critical herb supplies and ensure traceability.
- Inventory practices: seasonally adjusted procurement and strategic stockpiling of slow‑growing herbs to stabilize production.
Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK): How It Works
Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK) operates as an integrated traditional Chinese medicine (TCM) company combining product manufacturing, retailing, clinical services and research collaborations. Its revenue model leverages a heritage brand (founded 1669 in origin), a proprietary product portfolio, an extensive retail network, and cross-border distribution channels to monetize growing global demand for natural and holistic health solutions. Beijing Tong Ren Tang Chinese Medicine Company Limited: History, Ownership, Mission, How It Works & Makes Money- Product sales - branded proprietary Chinese patent medicines, herbal granules, decoctions and over‑the‑counter (OTC) remedies sold through company stores and third‑party channels.
- Clinical services - TCM consultation, diagnosis and treatment provided at company-owned clinics and health centers.
- Retail operations - direct sales through franchised and self‑operated retail outlets in Hong Kong, Mainland China and selected overseas markets.
- Wholesale distribution - bulk supply to pharmacies, hospitals, distributors and export markets.
- Strategic partnerships - licensing, co‑development and research collaborations with hospitals, universities and biotech/healthcare partners.
- Branded product pricing power - premium pricing for heritage, provenance and certified production methods (GMP/ISO where applicable).
- Margin stacking - higher gross margins on proprietary patent medicines and concentrated granules versus commodity raw herbs.
- Service economics - recurring revenue from repeat clinical visits, chronic care and subscription-style herbal programs.
- Channel diversification - retail storefronts capture retail margin; wholesale/exports scale volumes at lower unit margin.
- R&D monetization - new product launches, licensing of formulations and joint ventures expand marketable IP.
| Metric | Approximate Value / Note |
|---|---|
| Annual revenue (recent fiscal year) | ≈ RMB 4-7 billion (company and market reports vary by year; growth driven by retail expansion and exports) |
| Net profit margin | ≈ 6-12% depending on one‑off items and inventory revaluation |
| Gross margin | ≈ 35-50% (higher on proprietary patent medicines and branded products) |
| Retail network | Hundreds of stores across Mainland China, Hong Kong and selected overseas locations |
| Clinical outlets | Dozens of company clinics and TCM treatment centers integrated with retail |
| R&D / collaboration spend | Single-to-low double-digit percentage of operating profit reinvested into product development and clinical validation |
| Export / international revenue share | Approx. 10-20% of total revenue, growing with Southeast Asia, Europe and North America demand |
- Retail product sales: often the largest single contributor (roughly 40-60% of revenue in many years) due to direct margins and brand retail footprint.
- Wholesale & distribution: 20-35% - scales volumes through pharmacy chains and institutional channels.
- Clinical services: 5-15% - steady recurring income and cross‑sell into product purchases.
- Exports & licensing: 5-15% - strategic growth area with higher long‑term margin potential as brand recognition rises.
- Premium product lines (heritage formulas, limited‑edition ginseng/cordyceps) sold at higher ASPs to capture brand premium.
- Subscription herbal programs and chronic care packages driving recurring revenue and customer lifetime value.
- Franchise and shop‑in‑shop models accelerating retail footprint without proportional capital expenditure.
- Wholesale agreements with national pharmacy chains and hospital procurement systems to secure steady bulk orders.
- Collaborative R&D and licensing deals converting clinical evidence into exportable, approved formulations for regulated markets.
Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK): How It Makes Money
Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK) monetizes its heritage and manufacturing scale through a mix of retail, manufacturing, services and licensing, anchored by premium branding and geographic diversification. As of late 2025 the company carries a market capitalization of approximately HKD 7.12 billion. In 2024 it reported revenue of HKD 1.61 billion and net income of HKD 500.3 million (net margin ≈ 31%). The business operates roughly 140 branches across 29 countries and regions and continues to invest materially in R&D to modernize traditional Chinese medicine (TCM) offerings.- Retail & Flagship Stores - premium ready-made TCM, decoctions, herbal products sold through owned outlets and franchised stores in China and overseas.
- Wholesale & Export - distribution to hospitals, clinics, overseas retailers and partners across 29 regions.
- Manufacturing & Contract Manufacturing - GMP-certified production of classical formulas, patent medicines and private-label CMO services.
- Clinical Services & Health Solutions - on-site TCM consultations, decoction services and integrative clinic revenue from branded outlets.
- Online & Direct-to-Consumer - e-commerce sales, mobile apps and cross-border channels accelerating reach and margin capture.
- Licensing & IP - commercialization of proprietary formulations, co-development and technology partnerships that generate royalties and one-off fees.
| Item | 2024 Amount (HKD) | Share of Total Revenue |
|---|---|---|
| Total Revenue | 1,610,000,000 | 100% |
| Retail & Flagship Stores (est.) | 966,000,000 | 60.0% |
| Wholesale & Export (est.) | 322,000,000 | 20.0% |
| Manufacturing & CMO (est.) | 161,000,000 | 10.0% |
| Clinical Services & Health Solutions (est.) | 80,500,000 | 5.0% |
| Online & Other (est.) | 80,500,000 | 5.0% |
| Net Income | 500,300,000 | 31.1% margin |
- Competitive moat: premiumization, heritage branding and a globally distributed store network (≈140 branches) that raise barriers to entry for pure-play competitors.
- Growth levers: geographic expansion, premium product lines, digital sales growth and continued R&D-driven product modernization to capture integrative health demand.
- Risk mitigants: diversified revenue mix, manufacturing capabilities and IP/licensing income reduce exposure to single-channel shocks.
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