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wrote a column · Apr 30 20:20

IPO News | Xinhelian, a major Chinese supplier of traditional Chinese medicine (TCM) decoction products, submits third listing application to HKEX with last year's revenue at 1.335 billion yuan

According to Zhitong Finance, Sichuan Xinhelian Traditional Chinese Medicine Decoction Pieces Co., Ltd. (referred to as Xinhelian) submitted its listing application to the Main Board of the Hong Kong Stock Exchange (HKEX) on April 30, as disclosed by HKEX. GF Securities (Hong Kong) and ABC International are the joint sponsors. The company previously submitted listing applications to HKEX on April 3, 2025, and October 17, 2025.
According to Zhitong Finance, Sichuan Xinhelian Traditional Chinese Medicine Decoction Pieces Co., Ltd. (referred to as Xinhelian) submitted its listing application to the Main Board of the Hong Kong Stock Exchange (HKEX) on April 30, as disclosed by HKEX. GF Securities (Hong Kong) and ABC International are the joint sponsors. The company previously submitted listing applications to HKEX on April 3, 2025, and October 17, 2025. Company Profile According to the prospectus, Xinhelian is a major supplier of traditional Chinese medicine (TCM) decoction products in China. According to Frost & Sullivan, based on TCM decoction product revenue in 2024, Xinhelian ranks second in China with a market share of 0.4% in a highly competitive market landscape, while the top five market participants collectively hold a 2.7% market share. Xinhelian serves a wide range of institutional and retail clients - including hospitals and medical institutions, medical trading companies, pharmacies, pharmaceutical companies, and most recently individual consumers - offering traditional herbal prescriptions, health products, and health management services. Xinhelian operates across most provinces in mainland China, as well as in Hong Kong and Taiwan Province, and has expanded overseas to regions with strong demand for traditional Chinese medicine such as Vietnam and Malaysia. During the performance record period, Xinhelian primarily served corporate clients through offline channels, including over 1,000 hospitals and medical institutions as well as large pharmacy chains, along with small pharmacies, clinics, and operators. In addition, Xinhelian taps into the growth potential of the retail market by providing consumer-oriented health products...
Company Profile
According to the prospectus, Xinhelian is a major supplier of traditional Chinese medicine (TCM) decoction products in China. According to Frost & Sullivan, based on TCM decoction product revenue in 2024, Xinhelian ranks second in China with a market share of 0.4% in a highly competitive market landscape, while the top five market participants collectively hold a 2.7% market share. Xinhelian serves a wide range of institutional and retail clients - including hospitals and medical institutions, medical trading companies, pharmacies, pharmaceutical companies, and most recently individual consumers - offering traditional herbal prescriptions, health products, and health management services. Xinhelian operates across most provinces in mainland China, as well as in Hong Kong and Taiwan Province, and has expanded overseas to regions with strong demand for traditional Chinese medicine such as Vietnam and Malaysia.
During the performance record period, Xinhelian primarily served corporate clients through offline channels, including over 1,000 hospitals and medical institutions as well as large pharmacy chains, along with small pharmacies, clinics, and operators. Additionally, Xinhelian taps into the growth potential of the retail market by providing consumer-oriented health products and is seizing global opportunities by exporting herbal products and establishing localized operations in high-potential international markets.
Xinhelian has a robust quality assurance system that ensures consistent quality across more than 770 types of decoction products. The company primarily sources raw materials from GAP-certified suppliers and has established a CNAS-accredited laboratory testing facility, creating a scalable and reliable ecosystem that serves institutional and retail markets in China and globally.
In terms of products and services, the company offers premium TCM products under the 'Xinhelian' brand. Since its establishment, the company has mainly focused on TCM decoction pieces. Leveraging its experience in TCM decoction pieces and the sales network it has built up serving hospitals, clinics, and pharmacies, the company strategically expanded its business to include new revenue growth points in the retail market. Xinhelian is a well-known supplier of toxic decoction products. As of the latest practicable date, the 'Measures for the Administration of Toxic Drugs for Medical Use' lists only 28 types of toxic decoction products, and the company produces the main 10 types. For regular decoction products, Xinhelian offers more than 760 types of common TCM decoction pieces in China as of December 31, 2025.
Financial Data
According to Zhitong Finance, Sichuan Xinhelian Traditional Chinese Medicine Decoction Pieces Co., Ltd. (referred to as Xinhelian) submitted its listing application to the Main Board of the Hong Kong Stock Exchange (HKEX) on April 30, as disclosed by HKEX. GF Securities (Hong Kong) and ABC International are the joint sponsors. The company previously submitted listing applications to HKEX on April 3, 2025, and October 17, 2025. Company Profile According to the prospectus, Xinhelian is a major supplier of traditional Chinese medicine (TCM) decoction products in China. According to Frost & Sullivan, based on TCM decoction product revenue in 2024, Xinhelian ranks second in China with a market share of 0.4% in a highly competitive market landscape, while the top five market participants collectively hold a 2.7% market share. Xinhelian serves a wide range of institutional and retail clients - including hospitals and medical institutions, medical trading companies, pharmacies, pharmaceutical companies, and most recently individual consumers - offering traditional herbal prescriptions, health products, and health management services. Xinhelian operates across most provinces in mainland China, as well as in Hong Kong and Taiwan Province, and has expanded overseas to regions with strong demand for traditional Chinese medicine such as Vietnam and Malaysia. During the performance record period, Xinhelian primarily served corporate clients through offline channels, including over 1,000 hospitals and medical institutions as well as large pharmacy chains, along with small pharmacies, clinics, and operators. In addition, Xinhelian taps into the growth potential of the retail market by providing consumer-oriented health products...
revenue
The company recorded revenue of approximately RMB 1.146 billion, RMB 1.249 billion, and RMB 1.335 billion in the fiscal years 2023, 2024, and 2025 respectively.
Total comprehensive income for the year
The company reported total comprehensive income for the year of approximately RMB 104 million, RMB 90 million, and RMB 107 million in the fiscal years 2023, 2024, and 2025 respectively.
Gross margin
The company's gross profit margin was 18.5%, 17.1%, and 19.0% in the fiscal years 2023, 2024, and 2025 respectively.
Industry Overview
Traditional Chinese medicine (TCM) products include several major categories: proprietary Chinese medicines, TCM decoction pieces, TCM formula granules, TCM injections, and TCM health supplements. Among these, decoction pieces remain the cornerstone of TCM practice, forming an important component of personalized herbal decoctions and a key raw material for proprietary Chinese medicines. The market for TCM products in China increased from RMB 393.8 billion in 2020 to RMB 432.6 billion in 2024, with a compound annual growth rate (CAGR) of 2.4%. It is expected to continue growing at a CAGR of 3.1% from 2025 to 2030, reaching RMB 492.3 billion by 2030.
According to Zhitong Finance, Sichuan Xinhelian Traditional Chinese Medicine Decoction Pieces Co., Ltd. (referred to as Xinhelian) submitted its listing application to the Main Board of the Hong Kong Stock Exchange (HKEX) on April 30, as disclosed by HKEX. GF Securities (Hong Kong) and ABC International are the joint sponsors. The company previously submitted listing applications to HKEX on April 3, 2025, and October 17, 2025. Company Profile According to the prospectus, Xinhelian is a major supplier of traditional Chinese medicine (TCM) decoction products in China. According to Frost & Sullivan, based on TCM decoction product revenue in 2024, Xinhelian ranks second in China with a market share of 0.4% in a highly competitive market landscape, while the top five market participants collectively hold a 2.7% market share. Xinhelian serves a wide range of institutional and retail clients - including hospitals and medical institutions, medical trading companies, pharmacies, pharmaceutical companies, and most recently individual consumers - offering traditional herbal prescriptions, health products, and health management services. Xinhelian operates across most provinces in mainland China, as well as in Hong Kong and Taiwan Province, and has expanded overseas to regions with strong demand for traditional Chinese medicine such as Vietnam and Malaysia. During the performance record period, Xinhelian primarily served corporate clients through offline channels, including over 1,000 hospitals and medical institutions as well as large pharmacy chains, along with small pharmacies, clinics, and operators. In addition, Xinhelian taps into the growth potential of the retail market by providing consumer-oriented health products...
China’s TCM decoction piece market has grown rapidly, increasing from RMB 200.7 billion in 2020 to RMB 306.7 billion in 2024, with a CAGR of 11.2%. It is projected to continue growing at a CAGR of 4.3% from 2025 to 2030, reaching RMB 408.7 billion by 2030.
According to Zhitong Finance, Sichuan Xinhelian Traditional Chinese Medicine Decoction Pieces Co., Ltd. (referred to as Xinhelian) submitted its listing application to the Main Board of the Hong Kong Stock Exchange (HKEX) on April 30, as disclosed by HKEX. GF Securities (Hong Kong) and ABC International are the joint sponsors. The company previously submitted listing applications to HKEX on April 3, 2025, and October 17, 2025. Company Profile According to the prospectus, Xinhelian is a major supplier of traditional Chinese medicine (TCM) decoction products in China. According to Frost & Sullivan, based on TCM decoction product revenue in 2024, Xinhelian ranks second in China with a market share of 0.4% in a highly competitive market landscape, while the top five market participants collectively hold a 2.7% market share. Xinhelian serves a wide range of institutional and retail clients - including hospitals and medical institutions, medical trading companies, pharmacies, pharmaceutical companies, and most recently individual consumers - offering traditional herbal prescriptions, health products, and health management services. Xinhelian operates across most provinces in mainland China, as well as in Hong Kong and Taiwan Province, and has expanded overseas to regions with strong demand for traditional Chinese medicine such as Vietnam and Malaysia. During the performance record period, Xinhelian primarily served corporate clients through offline channels, including over 1,000 hospitals and medical institutions as well as large pharmacy chains, along with small pharmacies, clinics, and operators. In addition, Xinhelian taps into the growth potential of the retail market by providing consumer-oriented health products...
In recent years, due to growing international recognition of the benefits of TCM treatments and the influence of global Chinese communities, overseas markets for TCM decoction pieces have experienced significant growth. China’s exports of crude drugs and decoction pieces increased from USD 1.1 billion in 2019 to USD 1.2 billion in 2024, with a CAGR of 1.0%.
According to Zhitong Finance, Sichuan Xinhelian Traditional Chinese Medicine Decoction Pieces Co., Ltd. (referred to as Xinhelian) submitted its listing application to the Main Board of the Hong Kong Stock Exchange (HKEX) on April 30, as disclosed by HKEX. GF Securities (Hong Kong) and ABC International are the joint sponsors. The company previously submitted listing applications to HKEX on April 3, 2025, and October 17, 2025. Company Profile According to the prospectus, Xinhelian is a major supplier of traditional Chinese medicine (TCM) decoction products in China. According to Frost & Sullivan, based on TCM decoction product revenue in 2024, Xinhelian ranks second in China with a market share of 0.4% in a highly competitive market landscape, while the top five market participants collectively hold a 2.7% market share. Xinhelian serves a wide range of institutional and retail clients - including hospitals and medical institutions, medical trading companies, pharmacies, pharmaceutical companies, and most recently individual consumers - offering traditional herbal prescriptions, health products, and health management services. Xinhelian operates across most provinces in mainland China, as well as in Hong Kong and Taiwan Province, and has expanded overseas to regions with strong demand for traditional Chinese medicine such as Vietnam and Malaysia. During the performance record period, Xinhelian primarily served corporate clients through offline channels, including over 1,000 hospitals and medical institutions as well as large pharmacy chains, along with small pharmacies, clinics, and operators. In addition, Xinhelian taps into the growth potential of the retail market by providing consumer-oriented health products...
Board Information
The company's board of directors consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors. According to the company’s articles of association, directors are elected and appointed by shareholders at the shareholders' meeting, with a term of three years, and are eligible for re-election.
According to Zhitong Finance, Sichuan Xinhelian Traditional Chinese Medicine Decoction Pieces Co., Ltd. (referred to as Xinhelian) submitted its listing application to the Main Board of the Hong Kong Stock Exchange (HKEX) on April 30, as disclosed by HKEX. GF Securities (Hong Kong) and ABC International are the joint sponsors. The company previously submitted listing applications to HKEX on April 3, 2025, and October 17, 2025. Company Profile According to the prospectus, Xinhelian is a major supplier of traditional Chinese medicine (TCM) decoction products in China. According to Frost & Sullivan, based on TCM decoction product revenue in 2024, Xinhelian ranks second in China with a market share of 0.4% in a highly competitive market landscape, while the top five market participants collectively hold a 2.7% market share. Xinhelian serves a wide range of institutional and retail clients - including hospitals and medical institutions, medical trading companies, pharmacies, pharmaceutical companies, and most recently individual consumers - offering traditional herbal prescriptions, health products, and health management services. Xinhelian operates across most provinces in mainland China, as well as in Hong Kong and Taiwan Province, and has expanded overseas to regions with strong demand for traditional Chinese medicine such as Vietnam and Malaysia. During the performance record period, Xinhelian primarily served corporate clients through offline channels, including over 1,000 hospitals and medical institutions as well as large pharmacy chains, along with small pharmacies, clinics, and operators. In addition, Xinhelian taps into the growth potential of the retail market by providing consumer-oriented health products...
Equity Structure
As of the document date, Mr. Jiang Yun is able to exercise 47.1% of the voting rights in the company through the following means: (i) 18,498,500 shares held directly by him; (ii) 9,151,965 shares held by Guojia Investment (as he is the ultimate beneficial owner of Guojia Investment).
Mr. Jiang Yun and Guojia Investment will become the controlling shareholders of the company.
As of the latest practicable date, Guojia Investment (a company incorporated in China on April 3, 1996) is held by Mr. Jiang Yun with a 47.0% interest. Accordingly, under the Securities and Futures Ordinance, Mr. Jiang Yun is deemed to have an interest in the shares held by Guojia Investment.
According to Zhitong Finance, Sichuan Xinhelian Traditional Chinese Medicine Decoction Pieces Co., Ltd. (referred to as Xinhelian) submitted its listing application to the Main Board of the Hong Kong Stock Exchange (HKEX) on April 30, as disclosed by HKEX. GF Securities (Hong Kong) and ABC International are the joint sponsors. The company previously submitted listing applications to HKEX on April 3, 2025, and October 17, 2025. Company Profile According to the prospectus, Xinhelian is a major supplier of traditional Chinese medicine (TCM) decoction products in China. According to Frost & Sullivan, based on TCM decoction product revenue in 2024, Xinhelian ranks second in China with a market share of 0.4% in a highly competitive market landscape, while the top five market participants collectively hold a 2.7% market share. Xinhelian serves a wide range of institutional and retail clients - including hospitals and medical institutions, medical trading companies, pharmacies, pharmaceutical companies, and most recently individual consumers - offering traditional herbal prescriptions, health products, and health management services. Xinhelian operates across most provinces in mainland China, as well as in Hong Kong and Taiwan Province, and has expanded overseas to regions with strong demand for traditional Chinese medicine such as Vietnam and Malaysia. During the performance record period, Xinhelian primarily served corporate clients through offline channels, including over 1,000 hospitals and medical institutions as well as large pharmacy chains, along with small pharmacies, clinics, and operators. In addition, Xinhelian taps into the growth potential of the retail market by providing consumer-oriented health products...
According to Zhitong Finance, Sichuan Xinhelian Traditional Chinese Medicine Decoction Pieces Co., Ltd. (referred to as Xinhelian) submitted its listing application to the Main Board of the Hong Kong Stock Exchange (HKEX) on April 30, as disclosed by HKEX. GF Securities (Hong Kong) and ABC International are the joint sponsors. The company previously submitted listing applications to HKEX on April 3, 2025, and October 17, 2025. Company Profile According to the prospectus, Xinhelian is a major supplier of traditional Chinese medicine (TCM) decoction products in China. According to Frost & Sullivan, based on TCM decoction product revenue in 2024, Xinhelian ranks second in China with a market share of 0.4% in a highly competitive market landscape, while the top five market participants collectively hold a 2.7% market share. Xinhelian serves a wide range of institutional and retail clients - including hospitals and medical institutions, medical trading companies, pharmacies, pharmaceutical companies, and most recently individual consumers - offering traditional herbal prescriptions, health products, and health management services. Xinhelian operates across most provinces in mainland China, as well as in Hong Kong and Taiwan Province, and has expanded overseas to regions with strong demand for traditional Chinese medicine such as Vietnam and Malaysia. During the performance record period, Xinhelian primarily served corporate clients through offline channels, including over 1,000 hospitals and medical institutions as well as large pharmacy chains, along with small pharmacies, clinics, and operators. In addition, Xinhelian taps into the growth potential of the retail market by providing consumer-oriented health products...
Intermediary team
Joint Sponsors: GF Financing (Hong Kong) Co., Ltd., ABC International Financing Co., Ltd.
Company Legal Advisors: Kirkland & Ellis LLP, Jingtian & Gongcheng Law Firm
Joint Sponsor Legal Advisors: O'Melveny & Myers LLP, Commerce & Finance Law Offices
Reporting Accountant and Auditor: Ernst & Young Accountants LLP
Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch
Compliance Advisor: First Shanghai Financing Limited
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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