New stock news: Hanfang Pharmaceutical submits application to Hong Kong Stock Exchange. Flagship product is compound Huangbai liquid solution.

According to the disclosure on February 25th by the Hong Kong Stock Exchange, Shandong Hanfang Pharmaceutical Co., Ltd. (referred to as Hanfang Pharmaceutical) has submitted its listing application to the Main Board of the Hong Kong Stock Exchange, with Zhongtai International as its exclusive sponsor. Company Overview The prospectus shows that Hanfang Pharmaceutical is a comprehensive pharmaceutical company engaged in the production, sales, and research and development of traditional Chinese medicine products. The company focuses on the treatment of skin and mucous membrane diseases, adept at integrating traditional Chinese medical wisdom with modern medical science. According to Frost & Sullivan's data, as of 2024 sales revenue calculations, Compound Huangbai Liquid Topical Solution ranks fourth in the Chinese external use traditional Chinese medicine market, occupying a 1.1% market share. Building on the success of this mature product, the company is expanding its product portfolio by offering cosmetics and other traditional Chinese medicine products. Hanfang Pharmaceutical's flagship product, Compound Huangbai Liquid Topical Solution, is currently the only prescription topical solution approved in the Chinese traditional Chinese medicine field. It is a nationally protected second-class Chinese medicine variety, granting it exclusive protection under the "Chinese Medicine Variety Protection Regulations," thereby prohibiting any other entity from producing the same drug. This national second-class protection status gives the company an exclusive market position for Compound Huangbai Liquid Topical Solution, without direct competition from similar drugs. As a market leader, Hanfang Pharmaceutical believes that Compound Huangbai Liquid Topical Solution will benefit from a stable growth market and reinforce the company's competitive position. Building on the success of Compound Huangbai Liquid Topical Solution, the company is actively advancing a diversified product portfolio through three core strategies: (i) promoting the research and development of new traditional Chinese medicine products; (ii) transforming clinically validated medical institution formulations or clinical experience formulas into innovative, marketable traditional Chinese medicine products; and (iii) commercializing acquired classic formula traditional Chinese medicine products. As of February 20, 2026, the company has successfully commercialized the prescription drug classic formula traditional Chinese medicine product An Gong Niu Huang Wan, while another classic formula traditional Chinese medicine product Wuji Bai Feng Wan will be available through retail pharmacies. Hanfang Pharmaceutical's Shandong Hanfang Traditional Chinese Medicine Industrial Park houses major production facilities that comply with GMP standards, equipped for large-scale production of Compound Huangbai Liquid Topical Solution, with an annual production capacity of approximately 70.2 million bottles of 100ml Compound Huangbai Liquid Topical Solution based on daily production capacity calculations, expandable based on future approved product demand. As a supplement, the company's second production facility, spanning a total construction area of 22,000 square meters, meets GMP standards and is used for the production of cosmetics and classic formula traditional Chinese medicine products (including An Gong Niu Huang Wan and Wuji Bai Feng Wan). Financial Data Revenue For the nine months ended September 30, 2023, 2024, and 2025, the company achieved revenues of approximately RMB 1.053 billion, RMB 992 million, and RMB 803 million, respectively. Profit For the nine months ended September 30, 2023, 2024, and 2025, the company achieved profits of RMB 237 million, RMB 199 million, and RMB 145 million, respectively. Gross Profit Margin For the nine months ended September 30, 2023, 2024, and 2025, the company's gross profit margins were 84.3%, 82.5%, and 84.3%, respectively. Industry Overview The global Chinese medicine market is expected to increase from RMB 1.6 trillion in 2024 to over RMB 3.4 trillion in 2034, reflecting a long-term growth trend. The application scenarios and recognition of Chinese medicine continue to rise globally. Chinese medicine has entered over 180 countries and regions, with 18 countries incorporating related content into their national healthcare systems. Driven by favorable policies and the management demand for chronic diseases brought on by aging populations, combined with product innovation and research and development upgrades, traditional Chinese medicine has established a competitive advantage in the Chinese medicine industry, driving sustained market growth. With China entering a deeply aging society, the demand for chronic disease management, elderly rehabilitation, and prevention of functional decline is rapidly increasing. Traditional Chinese medicine, with its advantages in overall regulation, multi-target intervention, and compatibility with long-term medication, aligns well with the demand for chronic disease prevention and treatment and is expected to experience accelerated demand release and structural growth as the aging process unfolds. Board of Directors Information The company's board of directors consists of nine directors, including six executive directors and three independent non-executive directors. The board is responsible for managing and operating the company's business and possesses relevant general powers. Shareholding Structure On October 15, 2025, the Chairman and executive director, Mr. Qin Wenji, entered into a joint action agreement with his younger brother, Mr. Qin Yinji, (General Manager and executive director). As of February 20, 2026, (i) Mr. Qin Wenji has direct rights to 27,000,000 shares, with an exercise of approximately 90.0% of the company's issued share capital voting rights; and (ii) Mr. Qin Yinji has direct rights to 3,000,000 shares, with an exercise of approximately 10.0% of the company's issued share capital voting rights. Intermediary Team Exclusive Sponsor: Zhongtai International Financing Co., Ltd. Company Legal Counsel: Regarding Hong Kong law: Joint venture between Chow Chun Huen & Partners and Tongparelegal LLP; Regarding Chinese law: Tongparelegal LLP Exclusive Sponsor Legal Counsel: Regarding Hong Kong law: Mayer Brown; Regarding Chinese law: Jun Tian Gong Cheng Law Firm Reporting accountants and independent auditors: Tianjian International Certified Public Accountants Co., Ltd Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Consultant: Zhongtai International Financing Co., Ltd