By-Health: The online channel growth in the first quarter drove overall gross margin levels increase.

Regarding the question of "whether the increase in gross profit margin in the first quarter will be reflected in the subsequent quarters," on April 24, Tongrentang responded during the quarterly investor performance conference call in 2026 that, on the one hand, the company adopts the first-in, first-out method for raw materials, and the impact of cost increases on gross profit margin will gradually increase in the later period; on the other hand, the gross profit margin of online channels is higher than that of offline channels, and the good growth of online channels in the first quarter has driven the overall gross profit margin level up. From a full-year perspective, the increase in the proportion of online channels has to some extent offset the pressure brought by the increase in raw material costs.