Yiyang Tongrentang Co., Ltd.

Date of Prospectus: March 20, 2026

Yiyang Tongrentang’s Hong Kong IPO: Deep Dive on Offer Structure, Financials, Risks, and Investor Opportunities

Yiyang Tongrentang, a prominent player in China’s healthcare sector, launches its highly anticipated initial public offering (IPO) on the Hong Kong Stock Exchange under the symbol 2667. This detailed analysis covers every critical aspect of the offering, including IPO structure, financial performance, investor allocations, cornerstone support, risk factors, and strategic outlook—providing actionable insights for investors, analysts, and market watchers.

IPO Snapshot: Offer Details and Key Terms

Yiyang Tongrentang’s IPO offers investors exposure to a growth-driven, reputable healthcare business. Below are the essential facts on the deal structure, offer size, and share allocation.

Use of Proceeds: The IPO is clearly positioned as a growth-driven story. Proceeds will be utilized for business expansion, new products, strategic investments, and working capital. The estimated total listing expenses are approximately HK\$72.6 million (RMB64.1 million), representing 8.6% of gross proceeds (assuming the over-allotment option is not exercised). This allocation signals a focus on scaling operations and capturing new market opportunities [[29]], [[301]].

Offer Timetable and Application Details

• Hong Kong Public Offer Application Window: 9:00 am, Friday, March 20, 2026 to 12:00 noon, Wednesday, March 25, 2026
• Price Determination Date: By 12:00 noon, Thursday, March 26, 2026
• Allocation & Results Announcement: No later than 11:00 p.m., Friday, March 27, 2026
• Listing Date: Implied to be before or on March 31, 2026

How to Apply: Applications are accepted via a fully electronic process:

• Online via White Form eIPO Service Provider at www.eipo.com.hk
• Through HKSCC EIPO service via your broker/custodian, using the FINI system

Applicants must be 18 or older with a Hong Kong address (for White Form), and are subject to eligibility rules (e.g., no close associates or directors may apply) [[329]].

Placement Breakdown and Cornerstone Investors

Offering Structure: The IPO comprises a 90% International Offering and 10% Hong Kong Public Offering, both subject to reallocation and the over-allotment option. Retail and institutional allocations may adjust based on demand. Up to 5,407,500 Offer Shares may be reallocated from the International to Public Offer if oversubscription triggers (such as full or oversubscription on both tranches) are met [[323]].

Cornerstone Investors:

Cornerstone investors have no board representation and will not become substantial shareholders post-IPO. They enjoy no preferential rights except a guaranteed allocation at the final offer price [[302]].

Investor Participation and Book Quality

Institutional demand is signaled to be strong based on the size and percentage of cornerstone allocations, with nearly half of the initial offer covered by two named cornerstone investors. These investors are not accustomed to take instructions from the company or its affiliates, supporting expectations of a diverse and stable shareholder base [[303]].

No pre-listing disposals by early shareholders are disclosed.

Deal Parties, Underwriting, and Offer Structure

Global Coordinator, Sponsor, Bookrunners, and 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 (Joint Global Coordinator, Joint Bookrunner, Joint Lead Manager)
• 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 (Bookrunners/Lead Managers)

Stabilization/Over-allotment: The IPO includes a standard over-allotment option of up to 15% of the offer size (16,223,000 shares). Stabilization activities (greenshoe) may be conducted in accordance with Hong Kong regulations [[324]], [[326]]. Underwriting commission is 2.5% of gross proceeds, with a discretionary incentive fee up to 1% possible (total fees up to 3.5%) [[319]], [[320]].

The presence of leading investment banks as global coordinators, bookrunners, and underwriters with robust reputations and the presence of a stabilization mechanism suggest strong support for listing-day performance, as inferred from the prospectus [[312]].

Company Overview: Business Model, Revenue, Market Position

Yiyang Tongrentang is a leading healthcare provider in China, operating across pharmaceutical retail, hospital, and healthcare services. Its business is built on the following pillars:

• Revenue Streams: Pharmaceutical sales, healthcare services (including hospital operations), and related product sales
• Key Products/Services: Retail pharmacy, hospital services, health products
• Customer Segments: General public, patients, healthcare consumers
• Geography: Primarily the People’s Republic of China (PRC)

Industry: Healthcare services and pharmaceutical retail, with the sector overview and size provided by independent research (Frost & Sullivan). The industry is characterized by high demand, strong regulatory oversight, and robust growth prospects [[90]].

Financial Performance

Financial Health: The company demonstrates improving profitability (gross margin rising from 15.7% to 18.9% in two years), positive net profit margins since 2023, and a stable liquidity position (current ratio improving to 1.4x by September 2025). Market capitalization post-IPO is projected between HK\$3.4 billion and HK\$3.9 billion [[29]], [[299]].

Market Position & Competitive Advantages:

• Strong national brand in China’s healthcare and pharmacy sector
• Significant public float and cornerstone support
• Industry research (Frost & Sullivan) provided to benchmark sector positioning

Management Team and Board Structure

The company’s directors take full responsibility for the accuracy and completeness of all statements. The board and management combine healthcare sector experience with proven operational expertise. Names, roles, and biographies are provided in the prospectus [[81]], though individual experience summaries are not detailed in the provided extract.

Sector Trends, Timing, and Market Environment

Industry Trends: The Chinese healthcare sector continues to see robust demand, supported by demographic trends, increased spending, and policy support. Industry size and outlook are validated by Frost & Sullivan’s independent report, which underpins Yiyang Tongrentang’s growth projections [[90]].

Timing: The IPO launches into a window with favorable sector and macroeconomic conditions, as described in the prospectus. The offer window runs March 20–25, 2026, with the listing expected before March 31, 2026. The company reports no material adverse change in its financial or trading position since September 30, 2025 [[28]], [[301]].

Recent Developments: The company affirms no significant legal or financial events have occurred post-September 30, 2025, and reports strong preliminary financials for FY2025, reviewed by Ernst & Young [[28]], [[301]], [[497]].

Risk Factors: Key Exposures for Investors

Major risk factors disclosed include:

• Market and Trading Risks: The trading price and volume of H Shares may be volatile due to operating results, macro events, or market sentiment.
• Dividend Policy Uncertainty: There is no guarantee of dividend payments post-IPO; dividends depend on business performance and board discretion [[74]].
• Reliance on Official Data: Some industry facts are based on government statistics, which may not be complete or up to date [[74]].
• Forward-Looking Statements: Actual outcomes may differ materially from projections, due to operational, regulatory, or market risks [[51], [75]].
• Other Standard Risks: Regulatory changes, competitive pressures, and macroeconomic shifts are also highlighted [[73], [75]].

Growth Strategy and Expansion Plans

Growth strategy centers on:

• Business and geographic expansion
• New products and services
• Strategic investments in facilities, R&D, and digital capabilities
• Utilizing IPO proceeds for working capital and future growth initiatives

Timelines and specific capex/expansion figures are referenced in the prospectus, with the company emphasizing its intent to capitalize on favorable market trends and sector growth [[301]].

Ownership Structure and Lock-up Arrangements

Pre- and Post-IPO Shareholding: The company will have 465,362,049 shares outstanding post-IPO (assuming no exercise of the over-allotment option). Public float will be at least 25% of total issued share capital, meeting regulatory requirements [[125]].

Lock-ups: Both the company and controlling shareholders have agreed not to dispose of shares for six months after listing. Additional lock-up and disclosure obligations are detailed in the prospectus, with requirements for prompt announcement of any share pledges or disposals [[316]], [[317]].

Valuation and Peer Comparison

Valuation Metrics: The IPO values the company at a market capitalization between HK\$3.40 billion and HK\$3.86 billion. Unaudited pro forma adjusted net tangible assets are HK\$2.17–2.40 per share, depending on the final offer price [[29]], [[480]]. A detailed peer comparison table is not included, as peer company metrics are not disclosed in the prospectus.

Research, Analyst Opinions, and Allotment Results

No analyst opinions, price targets, or peer IPO performance data are disclosed in the prospectus. Final subscription outcomes and listing day trading range will be announced on www.hkexnews.hk and yiyang.tongrentang.com after allocation [[5], [329]].

Listing Outlook: Inferred First-Day Performance

Based strictly on prospectus disclosures:

• Strong cornerstone support (over 43% of the offer), high-quality underwriter syndicate, and a growth-focused use of proceeds suggest solid investor demand.
• Absence of material adverse changes and robust recent results provide confidence in the company’s outlook.
• Stabilization mechanisms may support aftermarket trading.

Inferred conclusion: The IPO appears attractive for investors seeking exposure to China’s healthcare growth story, with prospects for a healthy first-day performance and potential for aftermarket support, contingent on final pricing and market sentiment.

Prospectus Access and Further Information

The complete prospectus and all official disclosures are available at:

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

How to Apply for Shares

Application Channels:

• White Form eIPO: www.eipo.com.hk
• HKSCC EIPO via your broker or custodian (FINI system)

Application Window: 9:00 am, March 20, 2026 to 12:00 noon, March 25, 2026 (Hong Kong time).
Eligibility: Applicants must be aged 18+ with a Hong Kong address (for White Form), and are subject to standard rules regarding associations with the company.

All information above is based solely on the content of the company’s official prospectus and related disclosures.