Henghong Technology (HCPC.US) plans to list on the US stock market. The China Securities Regulatory Commission requires further clarification on whether it involves the application of biotechnology and large amounts of medical data.

On April 3rd, the China Securities Regulatory Commission (CSRC) issued the "Supplementary Materials Requirements for Overseas Issuance and Listing Registration (March 28, 2025 - April 2, 2025)", with the CSRC's International Department requesting supplementary materials from 7 companies. The announcement mentioned that Henghong Technology was required to provide further clarification on the company's compliance status, including whether it involves biotechnology applications and massive medical data. According to the information, Hainan Hengcheng Health Industry Co., Ltd. (Hengcheng Health), a subsidiary of Henghong Technology Inc. in the US, has filed for an IPO with the SEC, with the stock code HCPC and an expected issue price between $4 and $6 per share. The CSRC requested the company to provide explanations on the following matters and to have lawyers verify and issue clear legal opinions: 1. The compliance of the company's equity control structure, including but not limited to the specific situations involving domestic individuals and foreign-invested enterprises in terms of foreign exchange management and overseas investment, and whether it complies with the "Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors". 2. Compliance status of the company's operations: (1) involvement in biotechnology applications and massive medical data; (2) evolution of the relationship between Guangdong Hengcheng Pharmaceutical Co., Ltd. and Hainan Hengcheng, as well as their current cooperation model; (3) specifics of cross-border procurement and sales of pharmaceuticals. 3. The scale of collection and storage of personal information by the company's domestic operating entities, the use of personal information collected, the existence of data transfer overseas or provision of personal information to third parties, and arrangements or measures for information data protection before and after listing. According to the prospectus, Henghong Technology mainly engages in pharmaceutical product distribution business in China through Hengcheng Health, with main revenue sources from the distribution of traditional Chinese medicine and chemical medical products, as well as the provision of promotional and marketing services. The main products include medications for treating colds and coughs (such as cold-clearing granules, wind-cold cold granules, honeysuckle detoxification granules, etc.) and tonic herbal medicines (such as blood-nourishing calming and spleen-strengthening granules, nourishing yin and generating fluids, qi and blood-nourishing shengmai granules, kidney-replenishing hair-darkening granules, waist-strengthening kidney-tonifying pills, etc.).