3QFY2024 gross profit surged by 12% y-o-y to RMB753 million while 9MFY2024 gross profit increased by 6% y-o-y to RMB2.69 billion. Gross profit margin for the 9MFY2024 rose by 4 percentage points y-o-y to 48% due to changes in the group’s sales structure with a higher proportion of industrial sales contributing to the overall increase in gross profit margin.
In the 3QFY2024, interest income fell by 42% y-o-y to RMB5.9 million while other gains more than doubled to RMB16.4 million from RMB6.3 million. Other gains in the 9MFY2024 stood at RMB49.5 million, more than double the RMB18.7 million posted in the 9MFY2023, due to the increase in bank certificates of deposit and increase in government subsidies.
Costs during the quarter rose as well, with double-digit increases in marketing and distribution costs, research and development costs and administrative expenses.
Share of profit of associates more than doubled to RMB36.7 million in the 3QFY2024 from RMB16 million in the 3QFY2023, while share of profit of associates fell by 25% y-o-y to RMB158 million in the 9MFY2024. The drop in the nine-month period was mainly due to a RMB35 million decrease in investment income from Sino-American Tianjin SmithKline & French Lab., Ltd. and another RMB8 million decrease in investment income from Tianjin Hong Ren Tang Pharmaceutical Co., Ltd.
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As at Sept 30, the group’s cash and cash equivalents stood at RMB1.46 billion, about 32% lower from the balance as at Dec 31, 2023.
No dividend was declared for the period.
Shares in Tianjin Pharmaceutical Da Ren Tang Group closed 4 US cents lower or 1.65% down at US$2.39 ($3.16) on Oct 30.
