Yiyang Tongrentang Co., Ltd.

Date of Prospectus: March 20, 2026

Yiyang Tongrentang IPO: In-Depth Analysis, Valuation, and Investor Outlook for 2026’s Healthcare Sector Debut

Yiyang Tongrentang Co., Ltd. is launching its highly anticipated initial public offering (IPO) on the Main Board of the Hong Kong Stock Exchange. With a strong brand in the healthcare sector, robust revenue growth, and a strategic focus on expansion, investors are closely watching this offering. This article comprehensively analyzes all aspects of the IPO, including offer structure, financial health, cornerstone participation, and the company’s competitive positioning in China’s dynamic healthcare industry.

IPO Snapshot: Key Offer Details for Yiyang Tongrentang

Yiyang Tongrentang (Stock Code: 2667) will be offered to investors with the following terms:

The IPO structure consists of a 90% International Offering and a 10% Hong Kong Public Offering, subject to reallocation and the Over-allotment Option.

Use of Proceeds: Growth-Driven Expansion Strategy

The estimated total listing expenses are approximately HK\$72.6 million (RMB64.1 million), representing about 8.6% of gross proceeds at the mid-point of the price range. The majority of IPO proceeds will be allocated to:

• Business Expansion & Capex: Funding expansion of existing facilities, new healthcare projects, and potential M&A.
• R&D Investment: Supporting research into new treatment techniques and healthcare services.
• Working Capital & General Corporate Purposes: Enhancing operational flexibility and liquidity.

This allocation signals a clear growth-driven listing story, with a focus on capacity and service expansion rather than deleveraging.

Dividend Policy: No Firm Commitment, Performance-Linked Distributions

No specific dividend payout ratio or timetable is committed. The Board’s approach will be based on business performance, capital requirements, and regulatory considerations. Distributions are subject to available profits and future board recommendations. There is no guarantee of dividends, and payment is not certain post-IPO.

Placement Structure and Cornerstone Investors

The placement is allocated as follows:

• Public (Hong Kong Public Offering): 10% of initial offer (10,815,500 H Shares, subject to reallocation)
• Institutional/International: 90% of initial offer (97,338,000 H Shares, subject to reallocation and Over-allotment)
• Cornerstone Investors:
  • Airport Technology Capital: HK\$219 million subscription
  • Aurora SF: HK\$170.3 million subscription

Cornerstone investors receive a guaranteed allocation at the final offer price with no preferential rights beyond allocation. No director or substantial shareholder Board representation is granted to these investors.

Investor Participation and Book Quality

Cornerstone participation is significant, with two major investors covering over 43% of the offer at the top end of the price range. All cornerstone allocations are for new shares; no pre-listing disposals or early shareholder sales are disclosed. The large cornerstone tranche and absence of side agreements suggest robust institutional support, often a positive indicator for listing-day performance.

Deal Parties and IPO Structure: Leading Investment Banks and Underwriters

The IPO is managed by a syndicate of top investment banks and underwriters:

• Sponsor, Sole Overall Coordinator, Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager: China International Capital Corporation Hong Kong Securities Limited
• Joint Global Coordinators, Bookrunners, Lead Managers: ICBC International Securities Limited, Guosen Securities (HK) Brokerage Company, Limited, Huafu International Securities Limited, SPDB International Capital Limited, China Industrial Securities International Capital Limited, GF Securities (Hong Kong) Brokerage Limited, ABCI Securities Company Limited, China Galaxy International Securities (Hong Kong) Co., Limited, Patrons Securities Limited, West Bull Securities Limited, Futu Securities International (Hong Kong) Limited, Livermore Holdings Limited, Tiger Brokers (HK) Global Limited

The offering is fully underwritten on both the Hong Kong Public and International tranches.

Stabilization and Over-allotment: An Over-allotment Option (greenshoe) of up to 15% (16,223,000 shares) is available, exercisable within 30 days after the close of the offer period. The presence of leading underwriters and a stabilization mechanism could help support the post-IPO trading price.

Company Overview: Yiyang Tongrentang’s Business Model and Market Position

Yiyang Tongrentang is a leading healthcare company operating in China, specializing in the development, production, and distribution of healthcare services and products.

• Revenue Model: Multi-channel revenue from hospital operations, pharmacies, and healthcare services.
• Key Products/Services: Not-for-profit hospital services, TCM (Traditional Chinese Medicine) pharmacy chains, and related healthcare offerings.
• Customer Segments: General public, with a focus on community health and wellness.
• Geographic Focus: Mainland China, with a notable presence in Hunan province.

Industry Size and Sector: The company operates in China’s large and growing healthcare sector, as described in the commissioned independent market research report. (Specific sector size and ranking are referenced but not numerically detailed in the available data.)

Financial Health: Multi-Year Performance Snapshot

Key financial ratios and figures as disclosed:

For the year ended December 31, 2024, revenue was RMB1,175.1 million (approx. HK\$1,332.4 million), well above the minimum HK\$500 million threshold for listing. Positive cash flow from operations exceeded HK\$100 million over the three years ended December 31, 2024. As of September 30, 2025, directors confirmed no material adverse change in the company’s financial or trading position.

Market Position, Competitive Advantages, and Management

• Public float meets HKEx requirements: At least 25% of post-IPO shares will be in public hands, with a minimum HK\$50 million free float as required by Rule 19A.13A.
• Brand and Market Standing: The company is presented as a reputable operator in the healthcare sector, with a strong local brand and growing pharmacy chain.
• Management Team: Details on individual names and backgrounds are available in the full prospectus, with senior management and directors collectively accepting responsibility for all disclosures.

Sector Trends, IPO Timing, and Market Environment

The offering opens March 20, 2026, and closes March 25, 2026, with listing expected by March 31, 2026.

• Healthcare Demand Drivers: The company’s sector is supported by macro trends including rising healthcare spending, aging population, and government support for healthcare infrastructure (referenced by Frost & Sullivan’s market report).
• Macro Environment: The prospectus details a stable operating environment in China’s healthcare sector, with regulatory clarity and continued industry growth.
• Recent Developments: No material adverse events since September 30, 2025; unaudited preliminary 2025 financials have been included and agreed by reporting accountants.

Overall, sector and market conditions appear favorable for a healthcare IPO in early 2026.

Prospectus Deep Dive: Risks, Growth Strategy, Ownership Structure

Risk Factors Highlighted

• Industry and Regulatory Risks: Changes in the regulatory environment, healthcare policy, or reimbursement rates could materially impact results.
• Market Risks: Trading price and volume of H Shares may experience volatility due to operating results, competitor actions, and broader economic trends.
• Operational Risks: Unexpected business interruptions (e.g., pandemics, natural disasters) may affect performance.
• Financial Risks: Fluctuations in interest rates, equity prices, or liquidity could impact margins and results.
• Information Reliability: Some industry data is derived from official government sources and market research, which may not be independently verified.
• Forward-Looking Statements: Actual results may differ from projections due to uncertainty and risks described above.

Growth Strategy and Expansion Plans

• Expansion: Capital from the IPO will be used to expand hospital and pharmacy operations, develop new healthcare services, and support R&D.
• M&A: Proceeds may be used for strategic acquisitions to further strengthen market position.
• Innovation: Emphasis on developing new treatment techniques and services, leveraging brand reputation.

Ownership Structure and Lock-Ups

• Pre-IPO Shareholding: Majority remains with controlling shareholders post-IPO.
• Public Float: At least 25% of shares will be in public hands after listing.
• Lock-Up Provisions: Controlling shareholders and the company are subject to a six-month lock-up period post-listing, restricting disposals and new issues, with further provisions in place for the following six months.
• Cornerstone Investors: No Board representation or special rights; allocations are locked in for a defined period as per standard practice.

Valuation and Peer Comparison

Based on the offer price range (HK\$7.30–8.30) and 465,362,049 post-IPO shares, the market capitalization will be HK\$3,397.14–3,862.51 million. The unaudited pro forma adjusted net tangible assets per share are HK\$2.17–2.40.

No direct peer financials, P/E, or sector multiples are disclosed for comparison in the prospectus.

Analyst Coverage and Opinions

No explicit analyst price targets or broker opinions are provided in the disclosed material. The only market research cited is a commissioned report by Frost & Sullivan, which supports the company’s outlook in the healthcare sector.

Listing Outlook: Should Investors Subscribe?

Based on strong cornerstone participation, robust financial health, and a clear growth strategy, Yiyang Tongrentang’s IPO is positioned for a positive debut. The healthcare sector’s favorable trends, combined with a well-supported underwriter syndicate and stabilization mechanisms, suggest potential for solid listing-day performance. The offer price is well-covered by institutional interest, and the lack of material adverse change or legal challenge up to the date of the prospectus further supports the listing’s credibility.

Potential first-day trading is likely to be strong, with the offer price supported by the large cornerstone tranche and absence of negative developments. As always, investors should consider the risks highlighted, including regulatory changes and market volatility, but the overall setup appears attractive based on the facts disclosed.

How to Access the Prospectus and Apply for Shares

The full prospectus and application details are available at:
www.hkexnews.hk
yiyang.tongrentang.com

How to Apply for Yiyang Tongrentang Shares

• Application Window: Opens 9:00 am, March 20, 2026; closes 12:00 noon, March 25, 2026 (Hong Kong time)
• Application Channels:
  • Online via the White Form eIPO Service Provider at www.eipo.com.hk
  • Through HKSCC EIPO service by instructing your broker or custodian (if they are a HKSCC Participant) to submit instructions via HKSCC’s FINI system
• Eligibility: Applicants must be at least 18 years old and have a Hong Kong address (for White Form eIPO)

No physical application channels are provided. Applicants should carefully read the prospectus and follow the instructions for submission.

Conclusion: Yiyang Tongrentang’s IPO—A Growth Play in China’s Healthcare Sector

Yiyang Tongrentang’s IPO offers investors exposure to a growth-focused, well-managed healthcare company in a rapidly expanding sector. With solid financial fundamentals, strong institutional support, and a clear strategy for expansion, the listing stands out as a compelling opportunity in the 2026 IPO calendar. Prospective investors are encouraged to review all disclosed risks, use the official websites for further information, and consider applying early in the fully electronic subscription process.