TONGSHIFU (00664) released its interim performance report, with a net profit of 1.281 million yuan, a decrease of 95.8% year-on-year.

TONGSHIFU (00664) announced its interim results for the six months ending June 30, 2026, reporting revenue of 342 million yuan (RMB, the same hereinafter), a year-on-year increase of 10.8%; net profit of 1.281 million yuan, a year-on-year decrease of 95.8%; and basic earnings per share of RMB 0.02. According to the announcement, for the six months ending June 30, 2026, the Group achieved a total revenue growth of 10.8% year-on-year, primarily benefiting from the expansion of offline direct stores and the continued growth of the agency network. Among these, revenue from direct sales channels grew by 13.6% year-on-year, while agency sales revenue also increased. Gross profit rose by 7.7% year-on-year, with the gross profit margin slightly declining from 35.1% in the same period last year to 34.1%, mainly influenced by rising raw material costs, increased depreciation and manufacturing expenses due to capacity expansion, and promotional activities for certain inventories. The Group's net profit for the period decreased by 95.8% year-on-year, mainly due to rigid cost increases resulting from the rapid expansion of offline direct stores (sales and marketing expenses grew by 71.2% year-on-year), phased cost increases from capacity expansion and production line upgrades, continued R&D investments, and foreign exchange losses arising from the conversion of funds raised from the IPO into Hong Kong dollars, among other factors.