IPO News | Health product company Genuine Holdings files for Hong Kong Stock Exchange listing again, operating six proprietary brands

According to Zhitong Finance, the Hong Kong Stock Exchange disclosed on March 9 that Genuine Holdings Limited (referred to as Genuine Holdings) submitted its listing application to the Main Board of the Hong Kong Stock Exchange. Hengbo Capital Limited is its exclusive sponsor. This marks the second time the company has filed for a listing with the Hong Kong Stock Exchange.

Company Overview

As per the prospectus, the company primarily engages in the development, sales, marketing, and distribution of health and beauty supplements and products in Hong Kong. The company outsources the production of its products to suppliers (including manufacturers) and mainly distributes its products through Mannings' retail outlets in Hong Kong under both its proprietary brands and third-party brands. According to Frost & Sullivan, based on the retail value of health and beauty supplements and products, the company held approximately a 1.6% market share among all international and local health and beauty supplement suppliers in Hong Kong in 2024.

In the local health and beauty supplements and products market, the company boasts a diversified product portfolio catering to the needs of men, women, and children across different age groups, with a focus on niche markets such as deer-related health supplements, joint and pain management, and topical pain relief products. According to Frost & Sullivan, (i) the company ranked first in terms of retail value for deer-related health supplements and products in Hong Kong in 2024, with a market share of approximately 29.4%; and (ii) the joint and pain management and topical pain relief products under the company’s proprietary brand Yantong Xiao were among the top five best-selling joint and pain supplements and products at Mannings' retail outlets in 2024.

Since the company's establishment in 2011, it has been actively expanding its product portfolio to offer a wide variety of products covering the needs of children, adults, and seniors. As of the latest practicable date (February 27, 2026), the company operates (i) a total of six proprietary brands: (a) Genuine; (b) Yantong Xiao; (c) Organicpharm; (d) Riyao Hall; (e) Weizaisheng; and (f) Profix; and (ii) a total of six third-party brands, including (among others) (a) iPro+ and (b) Boiron.

In addition to its proprietary brand products, the company also sells and distributes third-party branded products from Supplier G and Supplier K. Under this arrangement, the company directly purchases the relevant products from the brand owners and generates revenue by selling and distributing these products. The directors believe that third-party branded products further enrich the company’s product portfolio, enabling it to better meet the evolving demands of end customers.

The company also provides sales promotion services to third-party brand owners or brand owner groups, in which the company assists brand owners in selling their products through its distribution channels (including Mannings) and charges commissions based on the procurement amount obtained or subsequent sales or sales achieved by sales promoters through its distribution channels. During the track record period, the company provided sales promotion services for distributing products under third-party brands from suppliers K, SST Healthy, Client B, Boiron Asia, and Shangdi.

During the track record period, the company also generated revenue by providing management and packaging services, whereby: (i) the company offers value-added packaging solutions according to customer requirements, including packaging, warehousing, and inventory management, and charges service fees; and (ii) the company provides key account management and marketing services to third-party brand owners, assisting them in launching products within the company's distribution channels, in exchange for a fixed management fee.

The company's revenue comes from (i) the sale of health and beauty supplements and products under its own brands and third-party brands; (ii) providing sales promotion services to third-party brand owners or brand owner groups; and (iii) offering management and packaging services. For the three fiscal years ended March 31, 2025, and the six months ended September 30, 2024, and September 30, 2025, the sales of health and beauty supplements and products accounted for approximately 98.8%, 98.8%, 98.2%, 97.8%, and 98.2% of the company’s total revenue, respectively.

Financial Data

Revenue

In the fiscal years 2023, 2024, 2025, and the first half of 2026, the company's revenue was approximately HKD 43.193 million, HKD 110 million, HKD 130 million, and HKD 52.442 million, respectively.

Profit

In the fiscal years 2023, 2024, 2025, and the first half of 2026, the company’s annual profit and total comprehensive income were HKD 11.313 million, HKD 35.483 million, HKD 36.257 million, and HKD 0.944 million, respectively.

Gross margin

In the fiscal years 2023, 2024, 2025, and the first half of 2026, the company’s gross profit margin was 81.6%, 78.6%, 75%, and 76.6%, respectively.

Industry Overview

In Hong Kong's health supplement and product market, despite retail traffic disruptions caused by the outbreak of COVID-19, the nutrition and herbal supplements segment still generated HKD 7.1 billion in revenue in 2020 and increased to HKD 7.8 billion by 2024, with a compound annual growth rate of about 2.4%. This resilience is due to several factors. First, heightened public health awareness amid the COVID-19 outbreak has normalized daily nutritional supplementation, expanding the consumer base (especially beyond the traditional silver-haired market segment). Second, an aging population is increasing per capita spending on preventive nutritional products (particularly those targeting joints, cardiovascular health, and cognitive ability). Moreover, the rapid expansion of cross-border e-commerce platforms has improved transparency in product variety and pricing, maintaining average selling prices while driving volume growth. Finally, the ongoing recovery of inbound tourism is revitalizing sales at duty-free shops and downtown retail areas, compensating for largely absent demand growth sources between 2021 and 2022. Considering these drivers, industry revenue is projected to reach HKD 9.7 billion by 2029, implying a compound annual growth rate acceleration to about 4.6% from 2025 to 2029. Additionally, it is estimated that Chinese medicine products (including but not limited to ingredients such as cordyceps, ginseng, and ganoderma) account for approximately 38.2% of Hong Kong's health supplement and product market retail value, while non-Chinese medicine products like NMN, probiotics, vitamins, and protein powders make up 61.8% of the market size.

Hong Kong's beauty supplement and product market recorded sales of HKD 2.375 billion in 2020 and grew to HKD 2.709 billion in 2024, with a compound annual growth rate of approximately 3.3%. This resilience relies on several structural factors. First, the booming development of social media in video calls and selfie platforms has made people pay more attention to appearance, prompting millennials to consume collagen drinks, ceramide capsules, and probiotic enzyme powders more commonly, alongside the traditional female demographic aged 35 and above. Second, live commerce and cross-border digital malls can introduce new nutritional beauty products from Japan, South Korea, and mainland China into the Hong Kong market within weeks, enriching product variety and maintaining higher average selling prices. Additionally, the return of travelers post-COVID-19 is revitalizing purchasing power at offline beauty chain stores and travel retail outlets, boosting retail value growth, particularly evident in 2023 and 2024.

Looking ahead, this category's sales are expected to reach HKD 3.538 billion by 2029, implying a compound annual growth rate of 5.5% from 2025 to 2029. Key drivers include the rise of men's beauty and body sculpting trends, expanding the applicable customer base for fat metabolism tablets and muscle-building enzyme blends; continuous influencer marketing shifting users from topical skincare to combined topical and oral solutions; and innovative products such as peptide ready-to-drink mixes, NMN blends, and sugar-free gummies contributing to a wider product range. In the beauty supplement and product market, shaping formulations and skin-beautifying nutrients are estimated to account for approximately 30.7% and 69.3%, respectively, of the 2024 retail value.

Board Information

The board of directors consists of five members, including two executive directors and three independent non-executive directors. The board is responsible for the management and operation of the company's business and has general authority over its management and operations.

Equity Structure

Mr. Zhang Yunyu, the ultimate controlling shareholder, serves as the company's executive director, chairman of the board, and chief executive officer.

Intermediary Team

Sole sponsor: Hongbo Capital Limited;

Legal advisors: Han Kun Law Offices Limited Liability Partnership, Ms. Wu Yingshan, Han Kun Law Offices, Conyers Dill & Pearman;

Legal advisor to the sole sponsor and compiler: JunHe Law Offices;

Auditor and reporting accountant: FTI Mazars Certified Public Accountants Limited;

Industry advisor: Frost & Sullivan Limited;

Tax advisor: Cheng Cheng Tax Limited.

1479 Views