Analysis of the Development Prospects of Tongrentang Health Wine Business

Based on the collected market data and enterprise information, I will provide a detailed analysis of the development prospects of Tongrentang’s health wine business for you.

According to market data, Tongrentang’s health wine business achieved a 16% revenue growth in the first half of 2025, which is outstanding in the big health industry [1]. From the regional distribution perspective, regions such as Yunnan contributed significant increments, and the pharmaceutical retail channel is the main sales support [1].

• Health wine business growth rate: 16%
• Tongrentang overall stock price: $32.26 (2025-12-31)
• Market capitalization: $44.24B
• Price-to-earnings ratio: 32.68x

• The scale of China’s big health market is expected to exceed 16 trillion yuan by 2030 [2]
• Alcoholic beverages in 2024 showed three trends: “light health preservation, trendy flavors, and technological upgrading” [2]
• Young groups promoted the concept of “light health preservation”, with people under 35 contributing 35.9% of market increments [2]
• Blood-nourishing Chinese patent medicines sold about 10 billion yuan in physical pharmacies, and there is more room outside pharmacies [3]

• The scale of China’s health wine market showed a steady growth trend from 2020 to 2024 [1]
• Young consumers’ acceptance of health products continues to increase
• Healthiness and personalization have become the main development directions of alcoholic products

1. Brand Value:
   Century-old brand with strong credibility
2. Product Differentiation:
   Combining the concept of “homology of medicine and food” with modern consumer demands
3. Channel Advantage:
   Perfect pharmaceutical retail channel network
4. Strategic Cooperation:
   Reached strategic cooperation with enterprises such as Yili to expand the big health territory [4]

Dimension	Analysis
Market Demand	High growth potential, health wine market scale continues to expand
Policy Environment	Healthy China strategy supports the development of traditional Chinese medicine industry
Consumption Upgrade	Young groups’ health needs shift from passive treatment to active prevention
Competitive Landscape	Relatively small differentiated competition, leading brands have obvious advantages

• Current ratio: 3.45 (stable financial status)
• Quick ratio:1.89 (good short-term solvency)
• Net profit margin:7.49%
• ROE:10.02%
• Debt risk: Low risk [5]

• Aggressive accounting policies may affect profit quality [5]
• Weak stock price performance (down 20.52% in the past year)
• Risk of intensified market competition

###5. Conclusion and Investment Recommendations

✅ The 16% revenue growth rate indicates that the business is in a rapid growth stage
✅ Policy dividends in the big health industry continue to be released
✅ The renewal ability of the century-old brand in new consumption scenarios
✅ Strategic cooperation with leading enterprises such as Yili expands imagination space

⚠️ The proportion of health wine business in overall revenue is not yet clear
⚠️ Need to continuously track business proportion and profit contribution
⚠️ Need to pay attention to the input-output efficiency of the company in new business areas

Tongrentang’s health wine business has the basic conditions to become the second growth curve, but its contribution to overall performance is limited in the short term. Considering the long-term growth potential of the big health industry and Tongrentang’s brand advantages, this business is worth investors’ attention, and it is recommended to continuously track changes in its revenue proportion and profitability.

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[1] Tongrentang Health Wine Business Analysis Report - First Half 2025 Regional Sales Data

[2] iResearch - Weekly Market Observation of Food and Beverage Industry (March-April 2025)

[3] 36Kr - Blood Qi Anxiety of Young Women, Creating a 10 Billion Market

[4] Strategic Cooperation Information between Tongrentang Group and Yili Group (March 2025)

[5] Jinling AI Financial Database - Tongrentang (600085.SS) Financial Analysis Data