Tong Ren Tang Technologies : ANNOUNCEMENT ON RESULTS OF SUBSIDIARY

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Stock Code: 1666)

ANNOUNCEMENT ON RESULTS OF SUBSIDIARY

Reference is made to the announcement (the "Announcement") dated 11 March 2021 and published by Beijing Tong Ren Tang Chinese Medicine Company Limited ("Tong Ren Tang Chinese Medicine"), a subsidiary of Tong Ren Tang Technologies Co. Ltd. (the "Company") and whose shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited (stock code: 3613), in relation to the annual results of Tong Ren Tang Chinese Medicine and its subsidiaries for the year ended 31 December 2020.

This announcement is made pursuant to Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The board of directors of the Company would like to draw the attention of its shareholders and the public investors to the following audited financial information of Tong Ren Tang Chinese Medicine and its subsidiaries for the year ended 31 December 2020 as set out in the Announcement.

CONSOLIDATED INCOME STATEMENT

Year ended 31 December

2020	2019
HK$'000	HK$'000
Revenue	1,315,346	1,432,632
Cost of sales	(362,443)	(419,836)
Gross profit	952,903	1,012,796
Distribution and selling expenses	(168,917)	(199,097)
General and administrative expenses	(138,861)	(164,824)
Other gains, net	24,278	3,111
Operating profit	669,403	651,986
Finance income	21,652	43,415
Finance costs	(4,300)	(4,207)
Finance income, net	17,352	39,208
Share of losses of investments accounted for
using the equity method	(860)	(1,972)
Profit before income tax	685,895	689,222
Income tax expense	(118,014)	(112,370)
Profit for the year	567,881	576,852
Profit attributable to:
Owners of the Company	542,456	556,118
Non-controlling interests	25,425	20,734
567,881	576,852
Earnings per share attributable to owners
of the Company for the year
(expressed in HK$ per share)
Basic and diluted earnings per share	0.65	0.66

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEYear ended 31 December

2020	2019
HK$'000t	HK$'000
Profit for the year	567,881	576,852
Other comprehensive income/(losses):
Items that may be reclassified to profit or loss
Currency translation differences	15,474	(1,469)
Release of exchange reserve upon liquidation
of a joint venture	-	(961)
Item that will not be reclassified to profit or loss
Change in fair value of financial asset at fair
value through other comprehensive income	(4,875)	(4,485)
Other comprehensive income/(losses) for the
year	10,599	(6,915)
Total comprehensive income for the year	578,480	569,937
Attributable to:
Owners of the Company	550,521	549,119
Non-controlling interests	27,959	20,818
Total comprehensive income for the year	578,480	569,937

CONSOLIDATED BALANCE SHEET
2020	2019
HK$'000	HK$'000
Assets
Non-current assets
Property, plant and equipment	187,379	194,869
Right-of-use assets	194,442	195,057
Intangible assets	54,836	60,669
Investments accounted for using the equity
method	17,763	18,544
Financial asset at fair value through other
comprehensive income	6,108	10,983
Deposits paid for purchase of property,
plant and equipment	10,430	5,447
Deferred income tax assets, net	13,064	8,937
484,022	494,506
Current assets
Inventories	495,378	318,187
Trade receivables and other current assets	590,432	357,262
Short-term bank deposits	421,097	911,655
Cash and cash equivalents	1,426,040	1,056,711
2,932,947	2,643,815
Total assets	3,416,969	3,138,321
Equity and liabilities
Equity attributable to owners of the
Company
Share capital	938,789	938,789
Reserves
- Other reserves	(18,917)	(26,982)
- Retained earnings	2,097,617	1,747,694
3,017,489	2,659,501
Non-controlling interests	112,021	106,135
Total equity	3,129,510	2,765,636

As at 31 December

CONSOLIDATED BALANCE SHEET (CONTINUED)
2019
HK$'000	HK$'000
Liabilities
Non-current liabilities
Borrowings	2,052	833
Lease liabilities	63,095	59,395
Deferred income tax liabilities, net	5,696	5,376
70,843	65,604
Current liabilities
Borrowings	260	220
Trade and other payables	140,138	142,832
Lease liabilities	40,603	39,427
Current income tax liabilities	35,615	124,602
216,616	307,081
Total liabilities	287,459	372,685
Total equity and liabilities
3,416,969	3,138,321
By order of the Board
Beijing, the PRC
11 March 2021

Tong Ren Tang Technologies Co. Ltd.

As at 31 December 2020

Gu Hai Ou

Chairman of the Board

As at the date of this announcement, the Board comprises Mr. Gu Hai Ou, Mr. Jin Tao, Mr. Ma Guan Yu, Ms. Wu Qian, Mr. Wang Yu Wei and Ms. Fang Jia Zhi as executive Directors; Mr. Ting Leung Huel, Stephen, Ms. Chan Ching Har, Eliza and Mr. Zhan Yuan Jing as independent non-executive Directors.