IPO News | Yuekang Pharmaceutical (688658.SH) announces Hong Kong Stock Exchange as a biopharmaceutical company involving four core models

The Zhitong Finance App learned that according to the Hong Kong Stock Exchange's disclosure on December 29, Yuekang Pharmaceutical Group Co., Ltd. (688658.SH)) submitted a listing application to the main board of the Hong Kong Stock Exchange, and CITIC Securities is its sole sponsor.

Company profile

According to the prospectus, Yuekang Pharmaceutical is a biopharmaceutical company focusing on the research, development, production and commercialization of four models of therapeutics: oligonucleotides, messenger ribonucleic acid (mRNA) vaccines, peptides, and innovative traditional Chinese medicine drugs. The company uses comprehensive advantages such as commercial product portfolios, cross-modal R&D technology platforms and capabilities, pharmaceutical production quality management specification (GMP) certified production systems, and a nationwide commercial network to promote differentiated innovation pipelines for candidate products in a large number of major treatment fields that have not met demand and long-term growth potential.

With good market acceptance, the company's many flagship products have brought important contributions to the company's revenue and cash flow, providing a financial foundation for continuous R&D investment and capacity expansion. Yuekangtong® (Ginkgo Biloba Extract Injection) covers a wide range of hospitals in China, including tertiary and level-II hospitals, to manage cerebrovascular and peripheral vascular disorders. Alex® (edinafil citrate tablets) is prescribed in urological and andrological settings in China to treat male erectile dysfunction. Other key products such as Levick® (omeprazole enteric capsules) and Yuedanine® (metformin hydrochloride extended-release tablets) have further expanded the company's coverage in key treatment areas. The company also sells cephalosporin antibiotics with a wide range of labeled indications.

The company's pipeline includes innovative product candidates, spanning discovery, pre-clinical and clinical stages, involving four core models — oligonucleotides, mRNA vaccines, peptides, and innovative traditional Chinese medicine drugs. The company designs the company's pipeline to address significant unmet needs in the field of critical diseases, and supports the parallel development of multiple projects, targeting selected assets in China and overseas development where appropriate.

Financial data

revenue

The company recorded revenue of approximately RMB 4,521 billion, RMB 4.183 billion, RMB 3,767 billion and RMB 1,304 billion in 2022, 2023, 2024, and 2025 respectively for the seven months ended July 31.

Losses during the year/period

For the seven months ended July 31, 2025, the company recorded a loss of approximately RMB 146 million during the year, mainly due to: (i) a decrease in revenue from the sale of cardiovascular products, mainly due to the drop in price and sales volume of Yuekangtong®; and (ii) extensive investment in marketing and R&D activities.

Gross profit and gross profit margin

The company recorded gross profit of approximately RMB 2,871 billion, RMB 2,578 billion, RMB 2.145 billion and RMB 596 million in 2022, 2023, 2024, and 2025 respectively for the seven months ended July 31. For the same period, gross margins were 63.5%, 61.6%, 56.9%, and 45.7%, respectively.

Industry Overview

The global and Chinese pharmaceutical markets will continue to expand from 2020 to 2024, and are expected to continue to grow steadily until 2035, supported by growing medical demand, the increasing burden of chronic diseases, and continuous improvement in drug innovation and access. The long-term growth prospects remain resilient as the two markets further evolve towards higher value therapies and treatments becoming more popular.

In 2024, the top five treatment areas in the world by revenue were digestion and metabolism, anti-tumor/oncology, systemic anti-infective drugs, nervous system and respiratory system. The top five treatment areas in China are anti-tumor, digestion and metabolism, blood and hematopoietic organs, systemic anti-infective drugs, and respiratory system. The growth of these markets is being driven by strong demand for oncology, metabolic, hematologic, infection, and respiratory treatments.

The cardiovascular system consists of the heart, blood vessels, and brain vessels. The system maintains blood circulation to the brain and throughout the body by transporting oxygen and nutrients and removing metabolic waste. The global population with cardiovascular diseases increased from 605 million in 2020 to 633 million in 2024, with a compound annual growth rate of 1.1%. It is expected to reach 717 million by 2035, and the compound annual growth rate is 1.1% from 2024 to 2035. The prevalence of cardiovascular diseases in China increased from 129 million in 2020 to 147 million in 2024, with a compound annual growth rate of 3.4%. It is expected to reach 204 million by 2035, with a compound annual growth rate of 3.0% from 2024 to 2035.

Driven by an aging population, rising prevalence of cardiovascular diseases, increased prevalence of diagnosis and treatment, and continued adoption of more mature and innovative therapies, the global cardiovascular drug market increased from US$87.3 billion in 2020 to US$106.5 billion in 2024, with a compound annual growth rate of 5.1%. It is expected to reach US$165.5 billion by 2035, with a compound annual growth rate of 4.1% from 2024 to 2035.

Board of Directors and Executive Information

The board of directors of the company will be composed of 11 directors, including 7 executive directors and 4 independent non-executive directors. The term of office of directors is three years, and they can be re-elected after their term of office expires. According to relevant Chinese laws and regulations, the term of an independent non-executive director may not exceed six consecutive years.

Shareholding structure

Mr. Yu, Ms. Ma Guiying, Mr. Yu Fei, Mr. Yu Pengfei, Mr. Yu Jianming, Ms. Yu Xiaohui, Ms. Zhang Mengyu, Ms. Li Caiyun, Mr. Yu Xiaoming, Fuyang Jingyue Yongshun, Fuyang Yuda, Heze Hewang, Heze Huilong, Heze Jingrun, Heze Sanrong, Heze Fengsheng, Heze Jinran, and Heze Hezhihe (“Acting Together”) have acted in unison in exercising their respective rights as shareholders since they first held shares in the Company.

As of the last practical date, those acting in concert held a total of 218,947,562 A-shares of the company, accounting for about 49.26% of the company's voting rights (excluding 5,518,942 A-shares in stock). Actors acting in concert will form controlling shareholders after [compilation] is completed.

Intermediary team

Sole sponsor: CITIC Securities (Hong Kong) Limited

Industry Advisor: Insight Industry Consulting Co., Ltd.

Company Legal Adviser: Related to Hong Kong and US Law: Clyde Hong Kong Law Firm; Related Chinese Law: Jingtian Gongcheng Law Firm

Reporting Accountant and Independent Auditor: Yung Shing (Hong Kong) Certified Public Accountants Limited