IPO News | Baoji Yuan and the Hong Kong Stock Exchange ranked first in the Hong Kong proprietary Chinese medicine market

The Zhitong Finance App learned that according to the Hong Kong Stock Exchange's disclosure on July 17, Baoji Yuanhe (TCM) Co., Ltd. (TCM) Co., Ltd. (abbreviation: Baoji Yuanhe) submitted a listing application to the main board of the Hong Kong Stock Exchange, and Huafu Construction Enterprise Finance is the sole sponsor.

Company profile

According to the prospectus, the company is a leading proprietary Chinese medicine group headquartered in Hong Kong. It uses a vertically integrated traditional Chinese medicine business model and focuses on trusted traditional brands. According to the Frost & Sullivan report, based on terminal market sales in 2025, the company ranked first in the Hong Kong proprietary Chinese medicine market, with a market share of 9.2%. The company's business consists of two complementary pillars, namely branded proprietary Chinese medicine products and traditional Chinese medicine clinic services, and is supported by integrated capabilities covering brand management, formulation and product development, manufacturing and quality management, and sales and distribution. Through connecting products, traditional Chinese medicine practitioners and patients in the traditional Chinese medicine value chain, the company's vertically integrated business model lays a solid foundation for sustainable development and long-term growth.

The company's business is based on a portfolio of traditional household Chinese medicine brands with a long history of operation, which lays the foundation for the company's vertically integrated traditional Chinese medicine platform. The company's traditional brands include Baosai Pill, which has a history of 130 years, and Tenkido Tenki Maru, which has a history of over 120 years. According to the Frost & Sullivan report, in 2025, the flagship products of these brands will all rank first in the proprietary Chinese medicine market in the relevant efficacy categories in Hong Kong. The company also owns the famous medicinal oil brand Flying Eagle Huoluo Oil, Tang Taizong, which has a history of about 30 years and was named a famous brand in Hong Kong, and the century-old household brand Ten Ling Oil. The strength of the company's proprietary Chinese medicine product portfolio was further strengthened by Haitian, one of the first concentrated Chinese medicine granule brands in Hong Kong. The company has a comprehensive concentrated Chinese medicine granule product portfolio of over 700 types of mono and compound products. According to the Frost & Sullivan Report, the company ranked second in the Hong Kong concentrated Chinese medicine granule market in terms of terminal market sales in 2025.

Based on the company's branded proprietary Chinese medicine product portfolio, for the year ended March 31, 2026, the company fully expanded into the TCM Clinic Service Division and established a vertically integrated TCM platform. The company provides traditional Chinese medicine clinic services covering internal medicine, orthopedics, acupuncture and other traditional Chinese medicine consultation and treatment services through its established clinic brands Jianfu Tang, Jing Pei Traditional Chinese Medicine and Hong Kong Orthopedic and Spine Specialist Clinic. As of March 31, 2026, the company operated 40 clinics, with more than 50 registered Chinese medicine practitioners providing professional diagnosis services, mainly in densely populated areas. According to the Frost & Sullivan report, in terms of number of clinics, the company is the fifth largest private Chinese medicine chain in Hong Kong as of June 30, 2026, and the largest private chain of Chinese medicine clinics specializing in orthopedic surgery. The company believes that integrating the company's branded proprietary Chinese medicine products with the clinic network can not only provide unique insight into the needs of traditional Chinese medicine practitioners and patients, but also enhance the company's brand development and consumer interaction.

Financial data

revenue

For the year ended March 31 in 2024, 2025 for the year ended March 31, and 2026 for the year ended March 31, and 2026, the company achieved revenue of approximately HK$339 million, HK$361 million and HK$464 million, respectively.

profit

For the year ended March 31 in 2024, 2025 for the year ended March 31, and 2026 for the year ended March 31, and 2026, the total profit for the year was HK$65.534 million, HK$50.116 million, and HK$808.93 million, respectively.

Industry Overview

The proprietary Chinese medicine market in Hong Kong has developed significantly over the past few decades, mainly driven by increased health awareness and favorable government policies. Despite the negative impact of the pandemic from 2020 to 2022, the market has been recovering steadily since 2023, and is expected to grow rapidly in the future, driven by factors such as policy support from the 15th Five-Year Plan and the “Blueprint for the Development of Traditional Chinese Medicine”, more professional development and quality management of proprietary Chinese medicine products, increased public acceptance and confidence in proprietary Chinese medicine, and increased affordability for patients to pay for proprietary Chinese medicine products through the development of government-funded traditional Chinese medicine clinic services and related insurance products.

Growth Drivers

The main growth drivers for the proprietary Chinese medicines market in Hong Kong are as follows:

The aging population and increasing demand for family health care: As Hong Kong's population ages and health awareness increases, the demand for self-care and household medicines is expected to increase. Benefiting from retail accessibility, gentle treatment effects, and household reserve requirements, branded proprietary Chinese medicine products have the advantage of accurately meeting the stable and repeated consumption and long-term needs of elderly consumers and health-conscious families.

Unique formula, brand heritage and value-for-money pricing: Traditional Chinese medicine brands benefit from a long operating history, unique formulations and cross-generational reputation, enhancing consumers' confidence in the efficacy, safety and value of their products. As a result, these brands have the advantage of establishing stronger consumer stickiness, supporting repeat purchases, and maintaining long-term market resilience.

Expansion through cross-border and overseas channels: Hong Kong's free trade environment and connectivity with China enable proprietary Chinese medicine products to expand beyond the local market. Specifically, the China Drug Administration introduced a simplified Chinese registration route for eligible Hong Kong products that have been locally approved, used for more than 15 years, and manufactured in GMP compliance to enter the Chinese market. This creates opportunities for brand entities with a proven history of local use, compliant manufacturing, and a solid registration base to benefit from early market entry. Furthermore, overseas expansion has further expanded its influence among overseas Chinese communities and consumers familiar with traditional Chinese medicine culture.

Policy-driven standardization and market access: Policy support under the 15th Five-Year Plan and the “Blueprint for the Development of Traditional Chinese Medicine” is expected to boost the development of the proprietary Chinese medicine market in Hong Kong. The 15th Five-Year Plan supports the improvement of the quality of traditional Chinese medicine, integration and internationalization of medical services, while the “Blueprint for the Development of Traditional Chinese Medicine” provides more direct support through implementation of GMP, testing standards, registration support, and cooperation with China. Such measures are expected to help improve product acceptance and market access.

Board of Directors and Executive Information

The company's board of directors consists of nine directors, including two executive directors, four non-executive directors (one of whom is the chairman), and three independent non-executive directors. Board members are experienced in their respective fields of expertise.

Shareholding structure

Mr. Shum is the ultimate controlling shareholder of the company. Mr. Shum directly holds approximately 7.96% of Jianbeimiao shares and has indirect interests in Jianbei Miao Miao shares, including (i) holding approximately 39.27% through Lincoln's Hill, which is wholly owned by a trust company under Kingshill Trust; (ii) holding approximately 23.95% through its wholly-owned company Queenshill; and (iii) holding approximately 0.44% through QueenShill Trust Co, a subsidiary of QueenShill Trust. Therefore, after compilation, Mr. Shen, Jianbei Miao, JBMBVI, Lincoln's Shill, Trust Company, Kingshill Trust, Queenshill, QueenShillTrustCo, and QueenShill Trust will be a group of controlling shareholders.

Intermediary team

Sole sponsor: Huafu Construction Enterprise Finance Co., Ltd.;

Legal Advisors: Norton Roche Hong Kong, Kelly Hui, Kang Deming Law Offices;

Sole sponsor's legal adviser: He Wei Law Firm;

Auditors and reporting accountants: KPMG;

Industry consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch.