The A-share chain pharmacy IPO project is here: Kangbaijia starts counseling
Kangbaijia Pharmaceutical Group has initiated IPO counseling and plans to complete its listing in 2026. As a chain pharmacy with over 2,000 stores, Kangbaijia has a presence in Fujian, Zhejiang, Jiangxi, and other regions. Despite facing market pressures and regulatory challenges, Kangbaijia continues to expand its market share through acquisitions. After acquiring a subsidiary of WECOME in 2024, its market footprint extends into Zhejiang. Investment should be approached with caution, and market risks must be considered
The A-share listed chain pharmacies are expected to welcome expansion.
Recently, Kangbaijia Pharmaceutical Group Co., Ltd. (hereinafter referred to as "Kangbaijia") initiated IPO counseling.
As a chain pharmacy, Kangbaijia boasts over 2,000 stores, primarily concentrated in Fujian, Zhejiang, and Jiangxi.
Among them, Fujian Province is Kangbaijia's "base," with stores spread across urban and county areas.
According to the planning by Kangbaijia's sponsor, CITIC Securities, the IPO counseling is scheduled to be completed between March and May 2026.
This means that if everything goes smoothly, Kangbaijia is expected to submit an IPO application to the exchange next year.
Sources close to the project told Xinfeng that Kangbaijia has had the intention of going public for many years, but whether the chain pharmacy business model can gain recognition from regulators remains to be seen.
In recent years, the number of listed cases has indeed been relatively limited. Since Huaren Health (301408.SZ) landed on the ChiNext in March 2023, there have been no successful listings of chain pharmacies in the A-share market.
Affected by factors such as slowing consumption growth, chain pharmacies are collectively under pressure.
Since last year, retail pharmacies have been accelerating their exit. In the fourth quarter of 2024, 14,000 stores closed, accounting for more than one-third of the annual total, and by the end of the first quarter of this year, the number of retail pharmacy stores had fallen below 700,000.
Some leading chain pharmacies have seen significant profit shrinkage. For example, Lao Bai Xing (603883.SH) reported a net profit attributable to shareholders of 398 million yuan in the first half of 2025, a year-on-year decline of over 20%.
Despite this, Kangbaijia continues to "expand its territory" through acquisitions.
In May 2024, Kangbaijia acquired 100% equity of Zhejiang Weikang Pharmaceutical Retail Co., Ltd. and Zhejiang Weikang Pharmacy Co., Ltd., both wholly-owned subsidiaries of Weikang Pharmaceutical (300878.SZ), for a total transaction price of 100 million yuan, thereby securing over a hundred pharmacy stores and extending its market footprint from Fujian to Zhejiang.
With this move towards securitization, whether Kangbaijia can use the IPO as a springboard to further acquire more stores and increase market share is under scrutiny.
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