New Stock News | China's leading supplier of traditional Chinese medicine herbal products, New Hehua, submitted an application to the Hong Kong Stock Exchange three times last year, with a revenue of 1.335 billion yuan.

According to the disclosure by the Hong Kong Stock Exchange on April 30th, Sichuan Xinhehua Traditional Chinese Medicine Herbal Pieces Co., Ltd. (referred to as "Xinhehua") has submitted the listing application to the Main Board of the Hong Kong Stock Exchange, with GF SEC (Hong Kong) and Agricultural Bank of China International as joint sponsors. The company had previously submitted listing applications to the Hong Kong Stock Exchange on April 3, 2025, and October 17, 2025. Company Profile According to the prospectus, Xinhehua is a large supplier of traditional Chinese medicine herbal products in China. Based on data from Frost & Sullivan, Xinhehua ranks second in China in terms of revenue from traditional Chinese medicine herbal products in 2024, holding a market share of 0.4% in a competitive market landscape, while the top five market participants collectively hold a market share of 2.7%. Xinhehua provides services to a wide range of institutional and retail customers - including hospitals and medical institutions, medical trading companies, pharmacies, pharmaceutical companies, and recently individual consumers - offering traditional herbal formulas, health products, and health management services. Xinhehua's business covers most provinces in mainland China, as well as Hong Kong, Taiwan, and has expanded overseas to regions with strong demand for traditional Chinese medicine such as Vietnam and Malaysia. During the reporting period, Xinhehua primarily served corporate customers, including over 1,000 hospitals and medical institutions, large chain pharmacies, as well as small pharmacies, clinics, and operators through offline channels. In addition, Xinhehua is tapping into the growth potential of the retail market by providing consumer-oriented health products, and is seizing global opportunities by exporting Chinese herbal products and establishing localized operations in high-potential international markets. Xinhehua has a solid quality assurance system to ensure the consistency of over 770 types of herbal products. The company mainly purchases raw materials from suppliers certified by Good Agricultural Practices (GAP) and has established a laboratory testing facility accredited by the China National Accreditation Service (CNAS), creating a scalable and reliable ecosystem to serve institutions and retail markets in China and globally. In terms of products and services, the company offers high-quality traditional Chinese medicine products under the "Xinhehua" brand to customers. Since its establishment, the company's business focus has been on traditional Chinese medicine herbal products. Leveraging its experience in herbal products and its sales network targeting hospitals, clinics, and pharmacies, the company strategically expanded its business into the retail market with new revenue growth points. Xinhehua is a well-known supplier of toxic herbal products. As of the last practicable date, the "Regulations for the Administration of Toxic Drugs for Medical Use" only listed 28 types of toxic herbal products, with the company producing the main 10 types. In terms of general herbal products, as of December 31, 2025, Xinhehua offered over 760 types of general traditional Chinese medicine herbal products in China. Financial Information Revenue The company recorded revenues of approximately RMB 1.146 billion, RMB 1.249 billion, and RMB 1.335 billion in the fiscal years of 2023, 2024, and 2025, respectively. Comprehensive income The company recorded comprehensive income of approximately RMB 104 million, RMB 90 million, and RMB 107 million in the fiscal years of 2023, 2024, and 2025, respectively. Gross profit margin The company recorded gross profit margins of 18.5%, 17.1%, and 19.0% in the fiscal years of 2023, 2024, and 2025, respectively.