Core Viewpoint - The acceleration of traditional Chinese medicine (TCM) decoction pieces centralized procurement is reshaping the industry, leading to increased market concentration and a focus on quality standards [1][2][3] Group 1: Centralized Procurement Impact - Approximately 10 provinces have begun implementing the first national centralized procurement results for TCM decoction pieces, covering 45 commonly used varieties and a total demand of over 97 million kilograms from more than 30,000 medical institutions [1] - The centralized procurement process is expected to lead to a significant reshuffle in the TCM industry, affecting not only pricing but also quality and market dynamics [1][2] - The number of companies qualified for TCM decoction production exceeds 2,300, with a trend towards increased market concentration as non-winning products face diminishing market space [2] Group 2: Quality Standards and Pricing - Quality assessment for TCM decoction pieces is more complex than for chemical and biological drugs, influenced by factors such as origin, cultivation methods, and processing techniques [2] - The first centralized procurement experience indicates that a price drop of over 20% is necessary for companies to be considered for selection, with many firms quoting near cost prices [3] - The price index for TCM raw materials has seen significant declines, with some small varieties dropping nearly 90%, impacting the profitability of companies [3] Group 3: Industry Restructuring - The normalization of centralized procurement is leading to a "Matthew Effect," where larger companies with better resources and supply chains are more likely to succeed in procurement [4] - Smaller companies face increased pressure to adapt, with many considering specialization as a strategy for survival [4] - The industry is shifting towards upstream sourcing strategies, with a focus on establishing traceability systems to ensure product quality from cultivation to sale [5][6] Group 4: Upstream Integration - Major companies are beginning to invest in upstream resources to enhance their supply chain, as seen with Jiangzhong Pharmaceutical's acquisition of a stake in a decoction piece company [6] - Traditional markets are also looking to expand their presence in raw material-producing regions to strengthen their supply chain [6]

Core Viewpoint - Sichuan Xinhehua Traditional Chinese Medicine Co., Ltd. (referred to as "Xinhehua") has faced multiple challenges in its attempts to go public on the A-share market, leading to its recent decision to pursue a listing on the Hong Kong Stock Exchange instead [4][5][6]. Company Overview - Established in 2001, Xinhehua is the first GMP factory for traditional Chinese medicine pieces in China, with a product range that includes toxic and non-toxic medicinal pieces [4]. - The company has a significant presence in most provinces in China and has expanded internationally to regions with strong demand for traditional Chinese medicine, such as Vietnam and Malaysia [4]. A-share Listing Attempts - Xinhehua's journey to A-share listing has been fraught with difficulties, including a failed IPO attempt in 2012 due to allegations of financial misconduct, which were later found to be unsubstantiated [5][6]. - The company made a second attempt in 2020 but withdrew its application in 2021, citing market conditions [5]. - A third attempt was initiated in 2023, but the company voluntarily terminated its counseling record in April 2024 [5]. Ownership and Governance Issues - The actual controller's shareholding has been a concern, with a low ownership percentage in the initial IPO attempt affecting control dynamics [6]. - By 2020, the combined shareholding of the actual controllers increased to 54.95%, but this did not prevent the withdrawal of the listing application [6]. Product Quality Challenges - Xinhehua has faced product quality issues, with multiple instances of non-compliance reported by the National Medical Products Administration [6][8]. - These quality concerns have implications for the company's reputation and may lead to regulatory risks, impacting its ability to raise funds through an IPO [6][8]. Financial Performance - Xinhehua's financial performance shows a decline in net profit from 1.04 billion yuan in 2022 to 891 million yuan in 2024, representing a year-on-year decrease of approximately 14.3% [7]. - The company's gross margin has also decreased from 21.1% in 2022 to 17.1% in 2024, indicating declining profitability [7]. Market Position and Competition - The traditional Chinese medicine industry is characterized by intense competition and low market concentration, with 2,334 licensed companies in China and the top five accounting for only 2.7% of the market [8]. - Xinhehua holds a market share of 0.4% with revenues of 1.15 billion yuan, positioning it as the second-largest player in the industry, but it faces significant competition [8]. Challenges in Hong Kong Listing - Xinhehua's move to the Hong Kong Stock Exchange will involve addressing financial challenges, including declining customer retention rates, which fell from 86.5% in 2022 to 63.6% in 2024 [7][8]. - The company must also manage increasing inventory levels and accounts receivable, which reached 566 million yuan by the end of 2024, accounting for 45.3% of revenue [7][8]. Regulatory Scrutiny - The China Securities Regulatory Commission (CSRC) has requested additional information from Xinhehua regarding compliance and potential foreign investment restrictions as part of its Hong Kong listing application [9][10]. - The regulatory body is focused on ensuring investor protection and scrutinizing the company's historical A-share application issues [11].

Core Viewpoint - The traditional Chinese medicine (TCM) decoction pieces industry is undergoing a transformation from "experience inheritance" to "scientific verification," driven by the increasing demand for standardized and convenient TCM treatments, which is leading to a capitalized moment in the industry [1] Group 1: Company Overview - Sichuan Xinhehua Chinese Medicine Decoction Pieces Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, aiming to become the "first stock of TCM decoction pieces" in Hong Kong, with over 770 varieties and 4900 specifications of decoction pieces [1][4] - As the second-largest supplier of TCM decoction pieces in China, Xinhehua has established a dual-pillar strategy of "leading position in the core TCM market + disruptive innovation for modern consumers," contributing to the modernization of TCM [1][12] Group 2: Market Changes - The company is capitalizing on four major market changes: the "quality and price" focus of centralized procurement, segmentation of distribution channels, industry specialization, and the evolving health management needs [2] - Recent policies have strengthened support for the TCM industry, with a focus on standardization and centralized procurement, leading to an average price drop of 29.5% for 21 types of decoction pieces across 15 provinces [2][5] Group 3: Product Quality and Standards - Xinhehua is the first TCM decoction pieces company in China to obtain GMP certification and has participated in the formulation of 31 national processing standards and 7 major TCM material specifications, ensuring product quality and safety [3][4] - The company has also contributed to the revision of national standards for specific TCM materials, integrating modern scientific technology into production and quality assessment [4] Group 4: Financial Performance - Xinhehua's revenue has grown from 780 million yuan in 2022 to 1.249 billion yuan in 2024, with a compound annual growth rate of 27% [9] - The company's operational efficiency is reflected in its reduced sales and financial expense ratios, which have decreased by 1.68 percentage points and 0.22 percentage points, respectively, from 2022 to 2024 [9] Group 5: Future Prospects - The market size of TCM decoction pieces reached 278.8 billion yuan in 2023 and is expected to exceed 400 billion yuan by 2030, indicating a promising outlook for the industry [12] - Xinhehua's strategy focuses on maintaining its leadership in the core TCM market while innovating for modern consumers, positioning itself to capture new growth opportunities in the TCM decoction pieces sector [12]

Core Viewpoint - Traditional Chinese medicine (TCM) is recognized as a national treasure and plays a unique role in health care, with a stable market demand and broad foundation [1] - The recent policy support aims to accelerate the transformation and upgrading of the TCM industry, encouraging companies to expand globally and enter capital markets [1][2] Industry Overview - The TCM decoction pieces market reached RMB 278.8 billion in 2023, marking it as the fastest-growing segment in the pharmaceutical industry with a revenue growth of 14.6% and profit growth of 22.9% [2] - The global recognition of TCM's preventive health value has led to a surge in demand for herbal exports [2] Company Profile: Xin He Hua - Xin He Hua is a leading company in the TCM decoction pieces sector, ranking second in domestic revenue and achieving the fastest growth among the top five players, with a compound annual growth rate (CAGR) of 27% from 2022 to 2024 [2][3] - The company employs a dual pillar strategy focusing on maintaining leadership in the core TCM market while innovating for modern consumers [3] Business Strategy - The dual pillar strategy includes serving over 1,000 hospitals and large chain pharmacies through offline channels and providing consumer-oriented health products via digital platforms [3][4] - Xin He Hua has established a vertical integration system ensuring reliable quality control and traceability from farm to patient [3][5] Market Position and Growth - Xin He Hua has a solid business foundation, serving over 1,000 hospitals across more than 30 provinces in China, with a projected revenue CAGR of 28.4% from 2022 to 2024 [5] - The company has developed an online B2B platform and plans to launch additional online services to penetrate underserved market segments [6] Global Expansion - Xin He Hua is expanding internationally, with operations in regions with strong demand for TCM, such as Hong Kong, Taiwan, Vietnam, and Malaysia [7][8] - The company has seen revenue from overseas markets grow from RMB 26.1 million in 2022 to RMB 56.2 million in 2024 [8] Financial Performance - Xin He Hua's revenue was approximately RMB 780 million in 2022, RMB 1.146 billion in 2023, and RMB 1.249 billion in 2024, with a CAGR of 26.5% [8] - Adjusted net profit for the same years was around RMB 77.4 million, RMB 104 million, and RMB 100 million, with a CAGR of 13.8% [8] Future Outlook - The company's IPO in Hong Kong is aligned with its global expansion strategy, expected to enhance its financing channels and brand recognition [8]

Core Viewpoint - Sichuan Xin He Hua Chinese Medicine Co., Ltd. is attempting to list on the Hong Kong Stock Exchange after multiple failed IPO attempts, highlighting significant underlying issues that need to be addressed [1][5]. Financial Performance - Xin He Hua's revenue for 2022, 2023, and 2024 is approximately 780 million, 1.146 billion, and 1.249 billion yuan respectively, with corresponding net profits of 77.4 million, 104 million, and 89.1 million yuan [3]. - The company is experiencing a decline in profit margins, with gross profit margin decreasing from 21.1% in 2022 to 17.1% in 2024, particularly in toxic medicinal slices, which fell from 29.7% to 19.1% [3]. - The operating cash flow for 2024 is reported at -46,700 yuan, with trade receivables amounting to 5.58 billion yuan, representing 44.7% of revenue, indicating cash flow pressure [5]. Company Background - Established in 2001 and headquartered in Chengdu, Xin He Hua is one of the largest suppliers of Chinese medicinal slices, ranking second in China by revenue in 2023 [3]. - The company has a diverse product range, including toxic and ordinary medicinal slices, with operations extending beyond China to countries like Vietnam and Malaysia [3]. IPO History - Xin He Hua's IPO journey has been tumultuous, with the first attempt in 2010 being halted due to allegations of financial fraud, which claimed that a significant portion of its revenue was derived from fictitious transactions [4]. - The company made another attempt in 2020 but withdrew its application due to concerns over its core product competitiveness and internal controls [4]. Industry Challenges - The Chinese medicinal slice industry faces challenges such as price volatility in raw materials, which directly impacts pricing and costs [6]. - Xin He Hua's reliance on a limited product range poses risks; any changes in market demand or supply chain disruptions could significantly affect its performance [6].

Core Viewpoint - The company Sichuan Xinhehua Traditional Chinese Medicine Decoction Pieces Co., Ltd. is making its fourth attempt to go public in Hong Kong, despite previous setbacks and ongoing challenges in the market and operational performance [1][7]. Company Overview - Established in 2001, Xinhehua is the first GMP factory for traditional Chinese medicine decoction pieces in China and one of the largest in the country [1]. - The company offers approximately 770 types of traditional Chinese medicine decoction pieces, including both common and toxic varieties [2]. Financial Performance - Xinhehua's revenue has shown consistent growth over the years, with reported revenues of 780 million yuan, 1.146 billion yuan, and 1.249 billion yuan for the years 2022, 2023, and 2024 respectively [3]. - However, net profit growth has lagged behind revenue growth, with net profits of 77 million yuan, 104 million yuan, and 89 million yuan for the same years, indicating a decline of 14.24% in 2024 compared to the previous year [3][4]. Profitability Metrics - The company's gross margin has been declining, recorded at 21.1%, 18.5%, and 17.1% for the years 2022, 2023, and 2024 respectively [4]. - The decrease in gross margin is attributed to a higher sales proportion to medical trade companies and pharmacies, which typically have lower profit margins [4]. Research and Development - Xinhehua's R&D investment has been decreasing as a percentage of total revenue, with figures of 1.23%, 0.92%, and 1.37% for the years 2022, 2023, and 2024 respectively [6]. - The number of R&D personnel has also decreased relative to total employees, with only 3.57% of the workforce engaged in R&D as of 2024 [6]. Market Dynamics - The traditional Chinese medicine market in China reached a size of 451.6 billion yuan in 2023, with expectations to grow to 599.3 billion yuan by 2030 [2]. - The decoction pieces segment is the fastest-growing sub-sector, with a market size of 278.8 billion yuan in 2023 [2]. Competitive Landscape - The industry is characterized by low concentration, with 2,334 licensed manufacturers and the top five players holding only 2.7% of the market share [3]. - Xinhehua holds a mere 0.4% market share, positioning it as the second-largest producer in the sector [3]. Regulatory Environment - The company faces increasing quality demands due to the expansion of centralized procurement for traditional Chinese medicine decoction pieces, which has led to higher scrutiny and quality control measures [9]. - Xinhehua has faced multiple quality issues, being listed by the National Medical Products Administration for non-compliance on several occasions [10].

作者：周绘 出品：洞察IPO 上交所&深交所 新 股 上 市 3月31日-4月6日，上交所无公司上市，深交所创业板有1家公司上市。 | | 深交所 | | | | | | --- | --- | --- | --- | --- | --- | | 序号 | 公司名 | 代码 | 上市日期 | 登陆板块 | 易 | | 1~ | 首航新能 | 301658.SZ | 4月2日 | 深交所 创业板 | | 数据来源：公开信息；图表制作：洞察IPO 1. 首航新能：主要从事新能源电力设备的研发、生产、销售及服务。上市首日收涨244.49%，截至4月11日收盘报29.99元/股，较发行价11.80元/股涨 154.15%，市值约124亿元。 通过上市委员会审议会议 3月31日-4月6日，上交所主板有1家公司过会；深交所无公司过会。 | 数据来源：公开信息；图表制作：洞察IPO | | --- | 1. 技源集团：专业从事膳食营养补充产品研发创新及产业化的国际化企业集团。 递交上市申请 3月31日-4月6日，上交所、深交所均无公司递交上市申请。 终止上市审核 3月31日-4月6日，上交所主板有1家公司终止上市审核，深交 ...

年入12亿，四川成都中药饮片巨头冲刺IPO，上市之路坎坷 原创 阅读全文 格隆汇新股 ...

星标 ★ IPO日报 精彩文章第一时间推送 历时十年，三次闯关A股未果，甚至IPO审核获得通过，不过被举报财务造假，上市只差临门一脚！如今，IPO"卷土重来"——这 就是新荷花（全称"四川新荷花中药饮片股份有限公司"）IPO故事。 日前，新荷花递交了港交所主板上市的申请，联席保荐人为广发证券及农银国际。 制图：佘诗婕 三谋深交所上市，曾过会后被终止 招股书显示，新荷花成立于2001年，是中国中药饮片最大的供应商之一。 证监会官网显示，2011年，新荷花欲创业板上市，且接受了证监会的面审，审核结果是新荷花IPO申请获得通过。 那么，曾被举报撤单的新荷花，现在怎样了？ IPO日报注意到，新荷花近年来营收持续增长，不过其净利润波动幅度有点儿大，毛利率也明显下滑。 数据来源：证监会官网 然而，就在新荷花和外界均以为公司上市十拿九稳的时候，意外发生了。 2012年8月28日，新荷花被证监会发行监管部列为最新终止审查的已过会首发企业。 而新荷花被终止审查的原因主要是，该企业首发过会后，有员工举报企业财务造假行为，涉嫌隐瞒关联交易、虚增企业利润等严重内 控治理问题。 后经当地监管部门调查核实，证监会终止了其首发上市核准审查 ...