New stock news | New Lotus Flower Delivers Table Hong Kong Stock Exchange, company is China's leading supplier of traditional Chinese medicine products, ranked second in the traditional Chinese medicine industry

According to the disclosure by the Hong Kong Stock Exchange on October 17th, Sichuan Xinhua Chinese Medicine Co., Ltd. (referred to as "Xin He Hua") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with GF SEC (Hong Kong) and Agricultural Bank of China International Limited as joint sponsors. The prospectus shows that Xin He Hua is one of the largest suppliers of Chinese medicine decoction pieces in China. Based on Frost & Sullivan's data on Chinese medicine decoction piece product revenue in 2024, the company ranks second in China, holding a 0.4% market share in a fiercely competitive market, while the top five market participants collectively hold 2.7% market share. The company is also the fastest growing among the top five market participants, with a compound annual growth rate of 27% from 2022 to 2024. Xin He Hua adopts a dual-pillar strategy, balancing its leading position in the core traditional Chinese medicine market with rapid responses to modern consumer solutions. On one hand, the company mainly serves corporate customers including over 1,000 hospitals and medical institutions, as well as large chain pharmacies through offline channels, in addition to small pharmacies, clinics, and operators. On the other hand, by providing consumer-oriented health products, the company taps into the growth potential of the retail market. Furthermore, the company is seizing global opportunities through the export of traditional Chinese herbal products and establishing localized operations in high-potential international markets. As the most widely used form of traditional Chinese medicine, Chinese medicine decoction pieces represented a huge market of RMB 306.7 billion in 2024, becoming the fastest growing segment of the pharmaceutical industry in that year. During the previous period, Xin He Hua's revenue came from the sale of over 770 types and 4,900 categories of decoction piece products, with toxic pieces like Ban Xia and Sheng Jiang, and common pieces like Chuan Bei Mu, Mai Dong, fried Semen Ziziphi Spinosae, Dang Gui, and Huang Lian making significant contributions to the company's revenue. In terms of financial performance, during the previous period, Xin He Hua's revenue mainly came from the sale of decoction piece products. For the years ending December 31, 2022, 2023, and 2024, as well as the six months ending June 30, 2025, the company's revenue was RMB 780 million, RMB 1.146 billion, RMB 1.249 billion, RMB 599 million, and RMB 634 million respectively. During the same period, the company's profits were RMB 77.40 million, RMB 104 million, RMB 89.11 million, RMB 42.73 million, and RMB 51.23 million respectively.