According to a disclosure by the Hong Kong Stock Exchange on May 22, Guangdong Rongtai Pharmaceutical Co., Ltd. has submitted a listing application to the main board of the Hong Kong Stock Exchange, with CITIC Securities as the sole sponsor. The company had previously filed a listing application on September 26, 2025.
As outlined in the prospectus, Rongtai Pharma is a leading digital marketing and supply chain service provider in China's out-of-hospital pharmaceutical market. The company operates in both online and offline drug retail and wholesale. Its revenue primarily comes from (i) sales to individual customers via third-party e-commerce platforms and its own online stores; (ii) sales to grassroots terminals through regional sales partners and its e-commerce stores; and (iii) sales to chain pharmacies.
According to data from Frost & Sullivan, based on 2025 revenue, Rongtai Pharma is the third-largest digital marketing and supply chain service provider in China's out-of-hospital pharmaceutical market.
The company's sales through third-party e-commerce platforms (S2B2C) involve selling pharmaceutical products to individual customers via these platforms. Rongtai Pharma connects upstream pharmaceutical companies with optimal e-commerce sales resources. After procuring products from upstream pharmaceutical companies or their authorized distributors, the company sells them to individual customers through B2C and O2O platforms such as JD Health, Ali Health, Meituan Medicine, Dingdang Kuaiyao, and Quanyuantang.
Sales through Rongtai Pharma's own e-commerce stores (S2C) refer to the company selling pharmaceutical products directly to individual customers via its online stores. In addition to third-party platform sales, Rongtai Pharma has established its own sales channel—the Yikangsi Pharmacy brand, a retail pharmacy brand that sells directly to individual consumers. This serves as an additional channel for bringing products to market. During the track record period, Rongtai Pharma has owned and operated e-commerce stores (primarily Yikangsi Pharmacy) on major B2C and O2O platforms like Ali Health and Meituan Medicine, selling pharmaceutical products directly to individual customers through these stores.
Rongtai Pharma streamlines the medication purchase process by integrating prescription dispensing, over-the-counter drugs, and healthcare products onto a single platform, catering to the growing demand for convenience among individual customers. Furthermore, the company has established a digital platform capable of integrating commercial insurance companies' online medical services and has implemented patient education and medication adherence management programs. These programs cover major therapeutic areas such as cardiovascular diseases, mental disorders, oncology, skin diseases, influenza, and the common cold.
**Financial Information**
* **Revenue:** For the fiscal years 2023, 2024, and 2025, the company's revenue was approximately RMB 2.916 billion, RMB 2.875 billion, and RMB 3.388 billion, respectively. * **Gross Profit Margin:** The company's gross profit margin for the fiscal years 2023, 2024, and 2025 was 6.7%, 6.0%, and 6.8%, respectively. * **Annual Profit:** For the fiscal years 2023, 2024, and 2025, the company recorded annual profits of approximately RMB 45.717 million, RMB 3.741 million, and RMB 36.591 million, respectively.
**Industry Overview**
The prospectus notes that driven by favorable government policies and increasing medication demand, China's out-of-hospital pharmaceutical market has grown rapidly in recent years, with its share of the overall pharmaceutical market gradually increasing. From 2020 to 2025, the market size grew from RMB 509.2 billion to RMB 692.6 billion. It is projected to reach RMB 1,022.4 billion by 2030, representing a compound annual growth rate of 6.3% from 2020 to 2025 and 8.1% from 2025 to 2030.
The out-of-hospital market can be divided into over-the-counter drugs and prescription drugs. In 2025, the total size of China's out-of-hospital pharmaceutical market is estimated at RMB 692.6 billion, with RMB 262.7 billion from the OTC market and RMB 430.0 billion from the prescription drug market. By 2030, the out-of-hospital OTC market is expected to reach RMB 378.9 billion, with a CAGR of 7.6% from 2024 to 2030, while the prescription drug market is projected to reach RMB 643.5 billion, with a CAGR of 8.4% from 2025 to 2030.
Compared to prescription drugs, OTC drugs are expected to grow at a slower pace, primarily because the OTC segment has become a core component of China's out-of-hospital market, with relatively higher maturity and a larger existing customer base. Prescription drugs, benefiting from policy support for hospital prescription outflow and the continuous expansion of retail and online pharmacy channels, are currently experiencing faster growth.
In recent years, the market size for out-of-hospital digital marketing and supply chain services in China has grown rapidly. From 2020 to 2025, the market size increased from RMB 175.4 billion to RMB 256.6 billion and is projected to reach RMB 432.1 billion by 2030, with a CAGR of 7.9% from 2020 to 2025 and 11.0% from 2025 to 2030.
**Board Information**
The board of directors consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors.
**Shareholding Structure**
As of the latest practicable date, Mr. Chen Changqing collectively controlled approximately 46.31% of the company's total issued share capital, including (i) his direct holding of approximately 21.83% of the total issued share capital and (ii) the approximately 24.48% held by Guangzhou Changfeng, which is controlled by Mr. Chen as the sole general partner. Therefore, the company's controlling shareholders include Mr. Chen and Guangzhou Changfeng. As of the latest practicable date, Mr. Chen, as the sole general partner, owned approximately 3.03% of Guangzhou Changfeng.
As of the latest practicable date, Tianjin Haida held indirect interests in 1,036,251 shares held by Guangzhou Zhengda, Taizhou Sida, Lishui Tongda, Ningbo Xianda, Hangzhou Haida, and Huoerguosi Dadao, representing approximately 9.84% of the company's total issued share capital.
**Intermediary Team**
* Sole Sponsor: CITIC Securities (Hong Kong) Limited * Company Legal Advisors: Jia Yuan Law Firm, Global Law Office * Sole Sponsor's Legal Advisors: Jingtian & Gongcheng Attorneys-at-Law LLP, Beijing Jingtian & Gongcheng Law Firm * Auditor and Reporting Accountant: Ernst & Young * Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch * Compliance Advisor: Hodefin Capital Limited
Comments