New Stock Preview | Yu Research Hall submitted to the Hong Kong Stock Exchange to construct a modern traditional Chinese medicine service system with a "full life cycle diagnosis and treatment model"

On January 16th, Harbin Yuyantang Traditional Chinese Medicine Outpatient Group Co., Ltd. (hereinafter referred to as "Yuyantang") officially submitted its prospectus to the Hong Kong Stock Exchange, with CICC and Guoyuan International acting as its joint sponsors. Yuyantang, with its innovative "whole lifecycle diagnosis and treatment model," deeply integrates licensed offline medical institutions with exclusive online platforms to create an integrated service system of "offline initial diagnosis, online follow-up treatment." It is committed to empowering traditional Chinese medicine with modern technology to provide personalized and continuous health management services for patients. According to a Frost & Sullivan report, based on the total revenue of Chinese medicine outpatient clinics and clinics by 2024, Yuyantang ranks second among private chain Chinese medicine healthcare service providers in the northern region of China; based on plaster revenue, Yuyantang ranks first; and based on high patient trust, Yuyantang ranks first in customer repurchase rate among private chain Chinese medicine healthcare service providers in 2024. The whole lifecycle diagnosis and treatment model covers disease prevention, adjustment, treatment, and nurturing, creating a replicable standardized service system. Amid the backdrop of an aging population and rising demand for chronic disease management, the systemic value of traditional Chinese medicine in the field of preventive treatment is increasingly highlighted. However, traditional Chinese medicine services have long suffered from a lack of standardization and dispersed resources. National policies such as the "14th Five-Year Plan for Traditional Chinese Medicine Development" are actively guiding the industry towards standardized and chain-like upgrades, providing broad development space for companies like Yuyantang that have already established a compliant system and standardized operational capability. Yuyantang's innovation lies in its innovative "whole lifecycle diagnosis and treatment model." The company, founded on the concept of "preventing illness with Chinese medicine," moves the health management point forward, systematically covering four complete stages of "pre-illness, potential illness, actual illness, and recovery" through modern Chinese medicine assessment tools and big data analysis to provide integrated "prevent, adjust, treat, and nurture" personalized solutions for patients. In terms of operational structure, the company strictly follows the "offline initial diagnosis, online follow-up" Chinese traditional medical service model, ensuring that all patients complete a comprehensive diagnostic assessment at the licensed offline medical institution before starting treatment. During the initial diagnosis stage, a complete traditional Chinese diagnosis is conducted through observation, listening, questioning, and pulse diagnosis, laying a precise clinical foundation; the online platform supports key follow-up visits, continuous chronic disease and health management to enhance the continuity of patient care. The implementation of this innovative model relies on the company's solid integration of Wuxi Online Offline Communication Information Technology Co., Ltd. As of the end of the prospectus reporting period, Yuyantang has established a service matrix consisting of 48 self-built and self-operated licensed offline medical institutions in the northern region. All institutions are managed digitally through a unified cloud-based healthcare information system (HIS), covering patient appointment registration, electronic medical record management, physician workflow, and supply chain management. This technological foundation not only supports the company's "offline initial diagnosis, online follow-up" framework but also enhances the convenience of patients throughout the diagnosis and treatment process, allowing them to transition seamlessly from initial visits and treatment to follow-up visits, prescription management, and long-term health monitoring. The company's commitment to high-quality services has earned Yuyantang exceptional customer loyalty. According to the prospectus, as of the nine months ending September 30, 2025, Yuyantang's customer repurchase rate reached 81.1%, reflecting high market recognition of the value and efficacy of Yuyantang's services. Proprietary intangible heritage plaster and in-house preparations solidify the service value chain. Health popularization and diagnostic services are the starting point of Yuyantang's contact with patients, while its ability to translate profound treatment concepts into tangible treatment plans is key to building long-term competitive barriers and enhancing customer value. The company strictly follows the "one person, one prescription" principle, providing a variety of personalized traditional Chinese medicine formulations, including decoctions, pills, powders, and plasters, to actualize treatment plans and make them long-term. Among them, the company's proprietary intangible heritage plaster, refined through traditional craftsmanship, significantly improves patients' compliance with long-term medication due to its excellent taste and portability, becoming an important carrier for chronic disease health management. Additionally, the company also has multiple self-developed in-house preparations. These preparations stem from long-term clinical experience and are continuously refined within the company's Chinese medicine healthcare service network. As proprietary protected treatment assets, these preparations constitute the cornerstone of standardization and clinically validated processes within Yuyantang's chronic disease management. Behind the company's strong product capabilities is a talent system integrating its internal professional medical team with a collaborative research and development committee. The company has 292 directly employed full-time medical professionals to ensure the stability and continuity of service quality. The company's professional medical team works under unified clinical norms and integrated digital systems to provide standardized and high-quality care services throughout the Chinese medicine healthcare service network. According to the prospectus, Yuyantang's research and development committee consists of 98 experts, integrating the expertise of 47 professional medical team members and 51 external research collaborators. This clinical and research talent system continues to drive innovation and advance patient care development with rigorous standards. At the supply chain level, the company's core strategic pillar is the construction of a dedicated facility for producing traditional Chinese medicinal herbs. By internalizing this crucial link, the company can ensure supply chain security from the source, achieve excellent quality control from raw materials to final dispensing, mitigate external fluctuations, reduce supplier dependence, and improve cost efficiency. The facility will implement a strict internal quality management system and provide the capabilities needed for personalized prescription handling, transforming "good medicine" into a core operational advantage and completing the value cycle of "good physician, good medicine, and good service." Looking ahead, Yuyantang's strategic path is clear. At the forefront of its service network, the company is actively expanding its geographic footprint, focusing on provinces such as Shandong, Hebei, Henan, and Tianjin. Through a self-built and self-operated model, it is steadily expanding, deepening regional market penetration, optimizing resource allocation, and systematically enhancing market influence. At the backend of the industry chain, the company aims to digitally transform its production facilities by strengthening quality assurance. Through the synergistic strengthening of standardized Chinese traditional medical outpatient services at the front end and distinctive products at the back end, the company aims to deepen the proven "whole lifecycle diagnosis and treatment model" and maintain unique medical service and product value in its expansion. With the deepening implementation of the "Healthy China 2030 Outline" and various policies promoting the revitalization of traditional Chinese medicine, the Chinese medicine healthcare service market is experiencing systematic development opportunities. The increasing demand for long-term and systematic health management in society is highly aligned with the holistic view and preventive medicine concept of traditional Chinese medicine. Against this backdrop, Yuyantang, with its innovative service model, validated product capabilities, and integrated operating ecosystem, is poised to leverage its listing on the capital market as a new engine for accelerated development. Its listing process is not only a milestone for the company itself but also reflects that private Chinese medicine healthcare is transitioning from traditional experience-driven to a new stage of standardized and sustainable high-quality development, creating broader value for public health and bringing new investment perspectives to the market.