Tongrentang Yiyang Co., Ltd.

Date of Prospectus: March 20, 2026

Tongrentang Yiyang IPO: In-Depth Analysis on Offer Structure, Financials, Strategy, and Listing Outlook

Tongrentang Yiyang Co., Ltd. launches its highly anticipated IPO, offering investors exposure to a leading player in China’s healthcare and pharmaceutical sector. This comprehensive article provides a full breakdown of the IPO structure, cornerstone participation, financial performance, sector outlook, risks, and projected listing dynamics. All insights are based solely on the official prospectus, equipping investors, analysts, and market watchers with all critical facts for a well-informed investment decision.

IPO Snapshot

IPO Symbol: 2667
Offer Price Range: HK\$7.30 to HK\$8.30 per H Share
Number of Shares Offered: 108,153,500 H Shares (initial), representing approximately 23.24% of enlarged share capital
Over-allotment Option: Up to 15% of initial offer (16,223,000 additional H Shares)
Market Capitalization (Post-IPO): HK\$3,397.14 million to HK\$3,862.51 million (based on offer price range and 465,362,049 shares outstanding)
Offer Structure: 90% International Offering, 10% Hong Kong Public Offering (subject to reallocation and Over-allotment Option)
Expected Listing Date: March 31, 2026

Use of Proceeds: Strategic Growth and Expansion

The proceeds from the IPO are intended primarily for business expansion, investment in R&D, and strengthening the company’s capital base. The prospectus indicates a growth-driven capital raise, with funds earmarked for:

• New product development and R&D initiatives
• Expansion and upgrading of pharmacy and healthcare service networks
• Working capital and general corporate purposes

Exact allocation amounts are not specified, but the focus on expansion and innovation signals a robust, growth-oriented post-IPO strategy [[301]].

Dividend Policy

No fixed dividend payout ratio or timetable is committed. Future dividends are at the discretion of the Board, subject to business and financial performance, capital needs, and relevant regulations. Investors should not expect immediate or guaranteed dividend distributions post-listing [[74]].

Placement & Issuance Breakdown

Offer Breakdown:

• Public (Hong Kong Public Offering): 10% (10,815,500 H Shares, subject to reallocation)
• International Offering: 90% (97,338,000 H Shares, subject to reallocation and the Over-allotment Option)

Cornerstone and anchor allocations are detailed below.

Investor Participation and Cornerstone Investors

Cornerstone Investors:

• Airport Technology Capital: HK\$219.0 million allocation
• Aurora SF: HK\$170.3 million allocation

Combined, these cornerstone investors account for up to 43.37% of the Offer Shares at the top of the price range, underscoring significant institutional backing [[302]].
Cornerstone Investors:

Cornerstone investors have no board representation, special rights, or lock-ins beyond their guaranteed allocations [[303]]. No pre-listing disposals or sales by early investors are disclosed.
Book Quality & First-Day Performance Outlook: The high cornerstone allocation and clear institutional demand suggest a solid book and support for the IPO. This, combined with a recognized syndicate of underwriters, provides a strong foundation for robust first-day trading.

Deal Parties and Offer Structure

Sponsor, Sole Overall Coordinator, Joint Global Coordinators, Joint Bookrunners, and Joint Lead Managers:

• 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

Stabilization/Over-allotment Option: Up to 15% (16,223,000 H Shares), subject to exercise within 30 days from the last application day. Underwriting commission is 2.5% (plus up to 1.0% discretionary) of the offer proceeds [[319]].
Inferred Listing Support: The extensive syndicate led by a top-tier sponsor suggests robust distribution and aftermarket support, which may foster price stability and liquidity on listing day.

Company Overview: Business Model, Revenue, and Market Position

Tongrentang Yiyang Co., Ltd. is a leading operator in China’s healthcare sector, with a core business in pharmacy retail, medical services, and pharmaceutical distribution.

• Key Revenue Streams: Pharmacy retail, healthcare services, and pharmaceutical distribution
• Customer Segments: General public, healthcare institutions, and medical professionals
• Monetization: Product sales, service fees
• Geographical Focus: China (specific regions not detailed)

Industry Definition and Size: The company operates in China’s expansive healthcare, pharmacy, and medical services sector. Market sizing and share figures are referenced in the industry overview, with sector research provided by Frost & Sullivan [[90]].
Market Position and Competitive Advantages:

• Strong brand equity through the Tongrentang heritage
• Extensive and growing retail and service network
• Integrated offering (pharmacy, clinics, distribution)

Financial Health: Multi-Period Financial Performance

The company presents a track record of revenue growth and improved profitability, with positive operating cash flow and manageable leverage.

Revenue for 2024: RMB1,175.1 million (approx. HK\$1,332.4 million)
Cash Flow: Positive operating cash flow exceeding HK\$100 million for the three years ended December 31, 2024 [[28]].

Trends, Timing, and Market Environment

Sector Trends: The company operates in a large and growing healthcare and pharmacy sector in China, supported by increasing consumer health awareness, aging population, and regulatory support. The Frost & Sullivan industry report underpins a positive long-term outlook [[90]].
IPO Timing:

• Public Offering Opens: 9:00 am, March 20, 2026
• Public Offering Closes: 12:00 noon, March 25, 2026
• Expected Listing Date: March 31, 2026

Recent Developments: No material adverse change in financial or trading position since September 30, 2025. The company’s unaudited preliminary results for 2025 have been agreed with the reporting accountants 28, 301.
Macroeconomic Factors: The prospectus notes the operating environment is characterized by ongoing reform, growing healthcare demand, and competition, but no specific macro risks or sector slowdowns are highlighted.

Risk Factors

Key risks include:

• Regulatory: Healthcare and pharmaceutical industries are tightly regulated. Policy changes or non-compliance could impact operations.
• Market Volatility: Trading price and volume of H Shares may be volatile due to operational, macro, or sector-specific events.
• Competition: The sector is highly competitive, with risks from both established and emerging players.
• Dividend Uncertainty: No guarantee or fixed schedule for dividends.
• Reliance on Key Personnel: Departure or loss of executive talent may negatively affect performance [[73]], [[74]], [[75]].

Growth Strategy

The company is focused on aggressive expansion within China’s healthcare market.

• Expansion of pharmacy network and healthcare service footprint
• Investment in R&D and new product lines
• Potential M&A and strategic partnerships
• Modernization and digitalization of operations

No specific capex figures or timelines are disclosed, but the use of proceeds and historic investments indicate a well-capitalized growth pipeline [[301]].

Ownership and Lock-Ups

Pre- and Post-IPO Shareholding:

• Post-IPO, 25.0% of total issued share capital will be in public hands, satisfying Hong Kong’s free float rules [[125]].
• Controlling shareholders and pre-IPO investors are subject to standard lock-up restrictions (six months from listing, with limited exceptions for bona fide financings).
• Cornerstone investors will not become substantial shareholders or have board representation.
• ESOP and employee allocation not specifically disclosed.

Valuation and Peer Comparison

Post-IPO Net Tangible Asset Value per Share:

• HK\$2.17 (at HK\$7.30 offer price)
• HK\$2.40 (at HK\$8.30 offer price)

No P/E, P/B, or direct peer comparison data is disclosed in the prospectus. No other contemporaneous IPOs or sector performance tables are listed.

Research Coverage and Analyst Opinions

No external analyst coverage, price targets, or research opinions are disclosed in the prospectus.

IPO Allotment Result

The basis of allotment and results will be published on the company website (yiyang.tongrentang.com) and the Hong Kong Stock Exchange website (www.hkexnews.hk) no later than 11:00 p.m. on March 27, 2026. Results will also be available on www.iporesults.com.hk and www.eipo.com.hk/eIPOAllotment [[5]].

Listing Outlook

Based solely on prospectus disclosures, Tongrentang Yiyang’s IPO is well-supported by major cornerstone investors and a robust investment banking syndicate, with no material adverse financial developments and a clear growth strategy in China’s resilient healthcare sector. The high allocation to cornerstone and institutional investors implies a solid book and potential for price support on listing day. Given the post-IPO public float, strong sector fundamentals, and absence of negative surprises, the IPO appears likely to price toward the higher end of the range and open with a premium to offer, barring adverse market events.

Prospectus Access

Investors can access the full prospectus at: yiyang.tongrentang.com and www.hkexnews.hk

How to Apply

Application Channels:

• Online via the White Form eIPO Service Provider at www.eipo.com.hk
• Through brokers or custodians who are HKSCC Participants, via the HKSCC FINI system

Application Window:

• Opens: 9:00 am, March 20, 2026
• Closes: 12:00 noon, March 25, 2026

Applicants must be 18 or older with a Hong Kong address (for White Form applications) and not be existing shareholders, directors, or their close associates. No physical application channels are provided. Results and allocation details will be published via the websites listed above [[329]].