IPO News | Demei Pharmaceuticals reports that the Hong Kong Stock Exchange ranks first among innovative pharmaceutical companies in China in terms of skin prescription drug revenue

Zhitong Finance App learned that according to the Hong Kong Stock Exchange's disclosure on October 30, Demei Pharmaceutical Co., Ltd. (abbreviation: Demei Pharmaceutical) submitted a listing application to the main board of the Hong Kong Stock Exchange, and Huatai International is its sole sponsor. According to the Insight Consulting Report, in 2024, German Magnesium Pharmaceutical ranked first among Chinese pharmaceutical companies focusing on innovative products in revenue, and ranked fifth among all Chinese pharmaceutical companies.

According to reports, Demei Pharmaceutical was spun off and operated independently from Kangzhe Pharmaceutical (CMS) Group in 2021, and the spin-off listing implemented this time did not involve IPO financing. Such listings will be carried out by means of introduction and distribution by CMS. According to this, eligible CMS shareholders will receive relevant shares. The listing constitutes a spin-off of the Group from CMS, and does not involve the offering of the company's shares or any other securities of the company for purchase or subscription, nor will it raise any capital. After the spin-off is completed, CMS Retention Group will operate in the fields of cardiovascular and gastroenterology, ophthalmology, etc., and will also operate in the field of dermatology outside of China.

According to the prospectus, Demei Pharmaceutical is a leading pharmaceutical company in China that specializes in innovative skin health products. It is committed to providing comprehensive skin health solutions from prevention and treatment to long-term care around the integrated operation of research, production and sales of skin prescriptions and dermatology-grade skincare products.

Demei Pharmaceuticals has established a rich and differentiated product portfolio covering major skin diseases with huge unmet clinical needs. According to the Insight Consulting Report, as of June 30, 2025, the company's coverage of seven skin disease indications ranked first among all Chinese pharmaceutical companies focusing on innovative products, and ranked third among all Chinese pharmaceutical companies.

The company's main products include prescription drugs for the skin and dermatology-grade skincare products. They are cosmetics mainly composed of active substances, and their efficacy is supported by medical evidence. As of the last practical date: In the field of skin prescription drugs, the company's main product pipeline includes three marketed products, four clinical-stage or late-stage candidate products, and about five pre-clinical candidate products, covering major skin diseases such as psoriasis, vitiligo, atopic dermatitis (AD), and skin contusion; and in the field of dermatological-grade skincare products, the company's representative products include He-Zero Soothing Series products and the Xiliaotul® -azelaic acid product line, which are mainly aimed at consumers with atopic dermatitis and acne.

Demei Pharmaceuticals has leading commercialization capabilities with a proven track record. With deep strategic development and lean operation in the field of skin health, Demei Pharmaceutical has built a strong dermatological specialist sales and academic promotion team. As of June 30, 2025, the company had a self-built commercialization team of about 650 professionals. According to the Insight Consulting Report, the company's commercial team is one of the largest in the Chinese dermatological pharmaceutical industry; Demei Pharmaceutical has also established an extensive sales network and has covered major in-hospital and out-of-hospital channels. During the performance record period, the company's sales network covered more than 12,000 hospitals, more than 150,000 offline retail pharmacies, and various mainstream e-commerce platforms across the country. The company has considerable sales revenue from outside the hospital. According to the Insight Consulting Report, Demei Pharmaceutical is also in the leading position in the industry in terms of dermatology coverage in Chinese hospitals.

On the financial side, in 2022, 2023, 2024, and 2025 for the six months ended June 30, the company achieved revenue of 384 million yuan (RMB, same below), 473 million yuan, 618 million yuan, and 498 million yuan respectively; losses during the period were 55,171 million yuan, 4.703 million yuan, 106 million yuan and 31.08 million yuan. The company recorded a net loss during the performance recording period, mainly due to higher sales expenses due to the promotion of newly acquired or listed products and higher R&D expenses to enrich the product pipeline (such as CMS-D001). At the same time, some of the company's listed products were newly launched and contributed limited to revenue during the track record period.