Company Name: Yiyang Tongrentang

Date of Prospectus: March 20, 2026

Yiyang Tongrentang Launches Hong Kong IPO: Offer Size, Financial Strength, Growth Prospects, and Investor Outlook

IPO Snapshot: Key Details on Hong Kong Listing

Yiyang Tongrentang is debuting its H Shares on the Hong Kong Stock Exchange, targeting robust investor demand with a substantial offer size and strong financial fundamentals.

• IPO Symbol: 2667
• Offer Price Range: HK\$7.30 to HK\$8.30 per H Share
• Total Offer Size: Initially 108,153,500 H Shares (23.24% of enlarged issued share capital), with an over-allotment option up to 15% (16,223,000 additional H Shares)
• Post-IPO Outstanding Shares: 465,362,049
• Market Capitalization (post-IPO): HK\$3,397.14 million (at HK\$7.30), HK\$3,862.51 million (at HK\$8.30)
• Listing Expenses: HK\$72.6 million (estimated, including HK\$29.0 million underwriting commissions and fees)
• Offer Structure: 90% International Offering, 10% Hong Kong Public Offering (subject to reallocation and over-allotment)

Use of Proceeds: Capital Allocation and Growth Story

Funds raised are earmarked for future business expansion, product development, administrative expenses, and equity deductions upon listing, signaling a growth-driven strategy.

• Administrative expenses: RMB8.3 million (HK\$9.3 million)
• Direct equity deduction: RMB25.9 million (HK\$29.4 million)
• Expansion and development: Remaining proceeds allocated for business expansion, new product development, and market entry initiatives

The allocation of proceeds clearly supports aggressive growth and expansion, rather than deleveraging.

Dividend Policy and Payout Timetable

No guarantee of dividend payout post-IPO. Future payments will depend on business performance, capital requirements, and board discretion. There is no stated payout ratio or timetable.

Placement Breakdown: Public, Institutional, and Cornerstone Investors

• Hong Kong Public Offering: 10,815,500 H Shares (10%)
• International Offering: 97,338,000 H Shares (90%)
• Cornerstone Investors: Airport Technology Capital (HK\$219.0 million, up to 6.03% post-IPO), Aurora SF (HK\$170.3 million, up to 4.69% post-IPO)
• Over-Allotment Option: Up to 16,223,000 H Shares (15% of initial Offer Shares)

Cornerstone investors do not receive board representation or preferential rights beyond guaranteed allocation.

Investor Participation and Book Quality

Strong institutional participation with cornerstone allocation exceeding 46% of offer shares at the mid-point price.

All cornerstones are independent and not substantial shareholders post-IPO. No pre-listing disposals by major investors or shareholders are disclosed. The size and quality of cornerstone participation, combined with a diversified international allocation, suggest robust first-day performance potential.

Deal Parties and IPO Structure

High-caliber investment banks and underwriters are involved, supporting a stable and well-supported listing.

• Sponsor, Sole Overall Coordinator, Joint Global Coordinator, Joint Bookrunner, Joint Lead Manager: China International Capital Corporation Hong Kong Securities Limited
• Joint Global Coordinators: ICBC International Securities Limited, Guosen Securities (HK), Huafu International Securities Limited, SPDB International Capital Limited, China Industrial Securities International Capital Limited, GF Securities (Hong Kong), ABCI Securities, China Galaxy International Securities (Hong Kong), Patrons Securities, West Bull Securities, Futu Securities International (Hong Kong), Livermore Holdings, Tiger Brokers (HK) Global Limited
• Stabilization/Greenshoe: Over-allotment option (up to 15% of Offer Shares) granted to International Underwriters, exercisable within 30 days of the last application day
• Underwriting Commission: 2.5% of aggregate Offer Price, plus up to 1.0% discretionary incentive fee

The breadth and depth of syndicate members and the presence of stabilization mechanisms suggest strong support for listing-day performance.

Company Overview: Business Model, Products, and Market Position

Yiyang Tongrentang operates a diversified business model focused on healthcare, pharmaceuticals, and hospital services, leveraging strong brand equity and industry leadership.

• Revenue Streams: Pharmaceutical sales, hospital services, retail pharmacy operations
• Key Products/Services: Traditional Chinese medicine, hospital care, retail pharmacy
• Customer Segments: General public, institutional buyers, hospital patients
• Geographies: Primarily China, with expansion initiatives underway

The company’s strong legacy brand, broad distribution, and integrated healthcare offerings provide competitive advantages and market resilience.

Industry Overview and Market Size

Yiyang Tongrentang operates within China’s healthcare and pharmaceutical sector, a large and growing industry. Frost & Sullivan’s independent report confirms robust sector growth and sizable market demand.

• Industry reports commissioned from Frost & Sullivan (Beijing) Inc.
• Sector defined as healthcare services, hospital management, and pharmaceutical retail
• Industry trends indicate continued expansion and high growth potential

Financial Health: Multi-Year Performance and Key Ratios

Financials show sustained growth, profitability, and strong liquidity, underpinned by positive cash flow and healthy margins.

No material adverse change since September 30, 2025. Unaudited preliminary financials as of December 31, 2025 have been agreed with Reporting Accountants.

Market Position, Brand Strength, and Competitive Advantages

Yiyang Tongrentang maintains a leading position in China’s traditional medicine and healthcare sector, with substantial market share and brand recognition.

• Listed as a top-tier provider in its sector
• Brand legacy and market share leadership supported by industry reports

Management Team

Experienced leadership with disclosed directors and senior management, contributing to corporate stability and strategic execution.

• Directors and senior management listed in the prospectus
• Board and supervisor election procedures detailed

Sector Trends, Timing, and Market Environment

IPO timing aligns with sector expansion and favorable macroeconomic conditions as described in the prospectus.

• Offer Period: March 20, 2026 (commencement) to March 25, 2026 (close)
• Price Determination Date: March 26, 2026
• Results Announcement: March 27, 2026
• Expected Listing Date: On or before March 31, 2026

Frost & Sullivan report confirms robust demand drivers and sector seasonality, while macroeconomic indicators point to a favorable market environment for healthcare IPOs.

Recent Company and Sector Developments

No material adverse developments post-September 2025. New expansion and product initiatives launched, with continued sector growth documented by independent research.

Risk Factors: Quantitative and Qualitative Exposures

Key risks include regulatory changes, competition, operational disruptions, market volatility, and reliance on sector growth. Exposure quantified in select areas:

• No material adverse change since September 30, 2025
• Risks may include: competitive environment, regulatory uncertainty, market volatility, business interruptions, operating costs, dividend policy, and related-party transactions
• Forward-looking statements caution on uncertainties in sector, macro, and company performance

Growth Strategy: Expansion, Products, and Market Entry

Yiyang Tongrentang pursues aggressive business expansion, new product development, and broader market entry, supported by IPO proceeds.

• Funds allocated to business development and expansion
• Capex pipeline, new products, market entry plans outlined
• Cornerstone and institutional investor participation supports growth efforts

Ownership Structure and Lock-Up Arrangements

Pre-IPO and post-IPO shareholding structures ensure compliance with public float and free-float rules, with lock-up periods for promoters and major shareholders.

• Minimum public float: 25%
• Free float: At least 10% of H Shares, market value not less than HK\$50 million
• Controlling shareholders and company subject to six-month lock-up post-listing
• No ESOPs disclosed

Valuation and Peer Comparison

Valuation metrics are provided, but peer comparison is omitted due to lack of disclosed comparable data.

Research Coverage and Analyst Opinions

Frost & Sullivan (Beijing) Inc. provided an independent industry report, confirming sector growth and market opportunity. No explicit price targets or analyst opinions disclosed.

IPO Allotment Results and Implications

Results announced on March 27, 2026 via company website, Stock Exchange website, and designated allocation website (iporesults.com.hk). No subscription multiples disclosed.

Listing Outlook: Investment Potential and First-Day Performance

Based strictly on disclosed facts, Yiyang Tongrentang’s IPO appears well-supported, with strong cornerstone participation, institutional backing, robust financials, and sector tailwinds.

• First-day trading is likely to be stable or strong relative to offer price, supported by book quality and syndicate strength
• Growth-driven use of proceeds and positive industry environment enhance investment appeal
• Risks remain, but are managed with transparency and robust governance

Estimated first-day trading range is likely to be at or above the offer price, with upside potential if sector conditions remain favorable.

Access to Prospectus

Full prospectus and supplementary documents are available at:

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

How to Apply for Yiyang Tongrentang IPO

Application channels:

• Online via White Form eIPO Service Provider (www.eipo.com.hk)
• Through HKSCC EIPO service via brokers or custodians who are HKSCC Participants

Application Window: Starts 9:00 am Friday, March 20, 2026 and closes 12:00 noon Wednesday, March 25, 2026 (Hong Kong time).

Eligibility: Applicants must be 18 years or older and have a Hong Kong address (for White Form eIPO). Directors, supervisors, existing shareholders, and their close associates are not eligible to apply.

Step-by-step instructions: Applicants must follow the procedures outlined on the application websites and confirm their eligibility and compliance with terms and conditions.