Traditional Chinese medicine company Beijing Tongrentang says that although the economy may continue to decline this year, the company will try to achieve revenues of CNY10 billion and maintain a rapid expansion in overseas markets.
Mei Qun, the general manager of Beijing Tongrentang Group, has told local media that since the fourth quarter of 2008, as a result of the global financial crisis sales of Tongrentang's high-end products had decreased. However, it still targets sales of CNY10 billion in 2009 to realize a year-on-year increase of 12%.
By the end of March this year, Tongrentang had achieved sales of CNY2.72 billion, a year-on-year increase of 8.32%, and during the entire year of 2008, the group made total revenues of CNY8.8 billion.
Mei said because of the current economic situation, the sales of medicine cannot bring large profits to the group. Therefore, the group will attach more attention to the health medicine business, enhance its medicine retail network, and integrate the procurement and production chain of its medicine subsidiaries.
In addition, Tongrentang said it will not reduce its overseas business and since overseas property prices are relatively low, the group may buy some real estate for new stores. At present, the Beijing Tongrentang Group has 894 retail sites, including 28 overseas stores in 17 countries and regions.