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].

Summary of Key Points Core Viewpoint The news highlights the recent activities in the IPO market, including new listings, applications for IPOs, and financial data of companies preparing for public offerings. It emphasizes the performance of newly listed companies and their market potential. Group 1: New Listings - Shanghai Stock Exchange had no new listings, while Shenzhen Stock Exchange's ChiNext saw one company, Shihang New Energy, listed on April 2, with a first-day increase of 244.49% and a market value of approximately 12.4 billion yuan [3][4]. - Jiangsu Hongxin was listed on the Hong Kong Stock Exchange on March 31, with a closing price of 2.51 HKD per share, a slight increase from its issue price of 2.50 HKD, resulting in a market value of about 540 million HKD [10][34]. Group 2: IPO Applications - No companies submitted IPO applications on the Shanghai or Shenzhen stock exchanges during the period [6]. - Seven companies submitted IPO applications on the Hong Kong Stock Exchange, including: - Lens Technology, a leading provider of precision manufacturing solutions for smart terminals [16]. - Jiaxin International, focused on tungsten mining in Kazakhstan, with significant resources and production capabilities [20][21]. - Shangdingxin, a fabless power semiconductor supplier [24][25]. - Wenda Technology, providing smart city solutions and property services [26][28]. - Dongpeng Beverage, a leading functional beverage company in China, with a market share increase from 15.0% in 2021 to 26.3% in 2024 [31]. - Lalamove, a logistics platform with a significant market share in China [35][36]. - Xin Hehua, a major supplier of traditional Chinese medicine products [38][39]. Group 3: Financial Data - Shihang New Energy reported a revenue increase of 154.15% from its issue price [3]. - Lens Technology projected revenues of 46.6 billion yuan, 54.3 billion yuan, and 69.8 billion yuan for 2022, 2023, and 2024, respectively, with net profits increasing by 20.72% and 20.88% in 2023 and 2024 [18]. - Jiaxin International has not generated revenue yet, with projected net losses of 94.45 million HKD, 80.13 million HKD, and 177 million HKD for 2022, 2023, and 2024 [22]. - Dongpeng Beverage's revenues are expected to grow from 8.5 billion yuan in 2022 to 15.8 billion yuan in 2024, with net profits increasing significantly [32]. - Lalamove's revenues are projected to rise from 1.036 billion USD in 2022 to 1.593 billion USD in 2024, with adjusted net profits turning positive in 2024 [36].

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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 ...