Yiyang Tongrentang Co., Ltd.

Date of Prospectus: March 20, 2026

Yiyang Tongrentang’s Hong Kong IPO: Key Details, In-Depth Financials, Book Quality, and Growth Outlook

Yiyang Tongrentang launches its highly anticipated IPO on the Hong Kong Stock Exchange, offering investors exposure to a leading player in the healthcare and pharmaceutical sector. This analysis delivers a comprehensive, investor-focused breakdown of the offer structure, cornerstone allocations, company financials, risks, growth strategies, and listing prospects—based strictly on disclosed prospectus data.

IPO Snapshot

IPO Symbol: 2667
Offer Price Range: HK\$7.30 to HK\$8.30 per H Share
Total Offer Size: Initially 23.24% of enlarged issued share capital, representing 108,153,500 H Shares (10,815,500 Hong Kong Public Offering; 97,338,000 International Offering)
Post-IPO Outstanding Shares: 465,362,049 H Shares (assuming the Over-allotment Option is not exercised)
Over-allotment (Greenshoe) Option: Up to 16,223,000 additional H Shares (15% of initial Offer Shares)
Expected Market Capitalization: HK\$3,397.14 million to HK\$3,862.51 million (depending on final offer price)
IPO Application Window: 9:00 am, March 20, 2026 – 12:00 noon, March 25, 2026 (Hong Kong time)
Listing Date: Inferred to be by March 31, 2026

Use of Proceeds: Fueling Expansion and Strategic Initiatives

Growth-Driven Story: Yiyang Tongrentang intends to deploy IPO proceeds primarily for business expansion and strategic investments. The estimated total listing expenses are approximately RMB64.1 million (HK\$72.6 million), representing about 8.6% of the gross proceeds (at the mid-point of the offer price).
Concrete Allocations: While the prospectus references expansion and strategic use, granular breakdowns by R&D, capex, or debt are not itemized in monetary terms. The company’s focus, as inferred from the document, is on scaling operations, pursuing new projects, and supporting future growth.

Oversubscription Metrics

Subscription Data: As of the prospectus date, the final subscription multiples are not disclosed. The prospectus provides mechanisms for reallocation between the Hong Kong Public Offering and International Offering in the event of oversubscription, with up to 15% of the offer subject to reallocation or over-allotment.

Dividend Policy

Flexible, Performance-Based Approach: The declaration of dividends is at the Board’s discretion and considers business and financial performance, capital and regulatory requirements, and business conditions. There is no stated fixed payout ratio or concrete commitment to dividends, and profits may be retained for expansion or operational needs. The company cannot guarantee either the timing or quantum of dividends post-listing.

Placement and Issuance Breakdown

Initial Allocation:

• Hong Kong Public Offering: 10,815,500 H Shares (10%)
• International Offering: 97,338,000 H Shares (90%)
• Cornerstone Investors: 43.37% of Offer Shares (no overallotment), led by Airport Technology Capital and Aurora SF

Cornerstone Investor Terms: No board representation, no preferential rights except guaranteed allocation at final price, no side arrangements, and no substantial shareholder status post-listing.

Investor Participation and Book Quality

Strong Cornerstone Demand: Cornerstone investors are subscribing to over 43% of the offer, indicating robust institutional interest. With allocations and no pre-listing disposals disclosed, the book is supported by recognized names.
Implications: The high cornerstone share and absence of early sales/disposals suggest strong first-day support, especially among institutional participants.

Deal Parties and Structure

Investment Banks / Sponsors / Underwriters:

• China International Capital Corporation Hong Kong Securities Limited (Sponsor, Sole Overall Coordinator, Joint Global Coordinator, Joint Bookrunner, Joint Lead Manager)
• 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

Sponsorship and Underwriting: The IPO is fully underwritten and supported by a sizable syndicate, with a market-standard greenshoe (up to 15%). The presence of a broad, reputable banking group provides further market confidence for the offer and post-listing support.
Stabilization: The Sole Overall Coordinator has the right to conduct market stabilization and exercise the over-allotment option for up to 30 days post-listing.

Company Overview

Business Model: Yiyang Tongrentang operates within the healthcare and pharmaceutical sector, with a focus on pharmacy operations and hospital management. Its main revenue streams include pharmaceutical retail, healthcare services, and related operations.
Customer Segments and Geography: The company primarily serves patients and consumers in mainland China, leveraging a strong brand and a network of pharmacies and healthcare facilities.
Industry Size and Position: The company operates in a large and growing market, with revenue for the year ended December 31, 2024, reaching RMB1,175.1 million (~HK\$1,332.4 million)—well above the HK\$500 million listing threshold. It is positioned as a notable player, with an expected market capitalization exceeding HK\$2 billion at listing.
Competitive Advantages: The brand’s heritage, scale, and integrated service model provide notable market positioning and resilience.

Financial Health: Multi-Year Performance

Financial Position: The company has steadily improved profitability with a strong uptick in margins, demonstrating operational leverage and scale. The current ratio improvement indicates enhanced liquidity.

Management Team

The prospectus includes director and senior management details, all collectively accepting responsibility for the accuracy of the information. Specific names and extensive backgrounds are not itemized in the summary sections, but the management team is disclosed as experienced and compliant with regulatory requirements.

Trends, Timing & Environment

Sector and Market Trends: Yiyang Tongrentang operates in a large and growing healthcare market, as documented by independent research (Frost & Sullivan Report). The Chinese healthcare sector continues to exhibit robust demand drivers, with regulatory development and consumer trends supporting long-term growth.
IPO Timing: Offer window runs March 20–25, 2026, with listing expected by March 31, 2026. The company’s audited results and unaudited preliminary financials as of December 31, 2025, provide an up-to-date performance snapshot.
Economic Environment: No material adverse changes have occurred since September 30, 2025, and the company reports a stable market and regulatory environment. Macro conditions, as reflected in industry commentary, appear supportive.
Recent Developments: No significant adverse events reported post-September 30, 2025.

Risk Factors

Key Risks Identified:

• Market Volatility: The trading price of H Shares may fluctuate due to operational results, market conditions, regulatory changes, and external events.
• Dividend Uncertainty: No guarantee of future dividends; dependent on profitability and board discretion.
• Reliance on Government and Industry Data: Some industry statistics are based on third-party reports not independently verified by the company.
• Forward-Looking Statements: Actual outcomes may differ materially from projections due to uncertainties in the regulatory and competitive environment.
• Related-Party Transactions: The company regularly engages in related-party transactions, which are disclosed and considered arm’s length.
• Legal and Regulatory: Exposure to healthcare and data compliance laws.

Growth Strategy

Expansion and Innovation: The company intends to use IPO proceeds to drive expansion, pursue new business opportunities, and strengthen its core business, as inferred from the stated use of funds. There is a clear emphasis on scaling operations, enhancing offerings, and investing in future growth.

Ownership and Lock-ups

Pre- and Post-IPO Shareholding: At least 25% of the total issued share capital will be in public hands post-IPO, meeting free float requirements. The cornerstone investors will hold up to 10.08% of the issued share capital post-listing.
Promoter and Major Shareholder Lock-ups: Standard lock-up arrangements are in place, with controlling shareholders restricted from disposing of shares for six months post-listing. The company and controlling shareholders have provided additional undertakings as part of the underwriting agreements.

Listing Outlook: First-Day Performance and Subscription Worthiness

Strong Institutional Backing, Robust Financials: With 43%+ of the offer anchored by cornerstone investors and a fully underwritten structure, the book quality appears high. The company shows stable revenue growth, improving profitability, and a clear growth mandate.
Valuation and Margin of Safety: Implied price-to-book (P/B) upon listing is between 3.04x–3.41x, using pro forma net tangible assets, and the company is profitable with a rising ROE.
Inferred First-Day Trading Range: Given strong cornerstone and institutional demand, limited retail allocation, and no disclosed adverse developments, the shares are likely to open at or above the offer price, barring broad market volatility.
Subscription Recommendation: Based on available data, the offer appears attractive for investors seeking exposure to the Chinese healthcare sector with proven profitability and robust governance.

Prospectus Access

The prospectus and all official announcements are available at:

• www.hkexnews.hk
• yiyang.tongrentang.com

How to Apply

Application Channels:

• Online via the White Form eIPO Service Provider at www.eipo.com.hk
• Through HKSCC EIPO service via a broker or custodian who is an HKSCC Participant (using the FINI system)

Application Window: 9:00 am, March 20, 2026 – 12:00 noon, March 25, 2026 (Hong Kong time)
Eligibility: Applicants must be 18 years or older and have a Hong Kong address (for White Form eIPO). Existing shareholders, directors, supervisors, or their close associates are not eligible to apply.

All data and analysis above are sourced exclusively from the issuer’s official prospectus and offer documentation.