New Stock News | TRT Medical and Health has passed the Hong Kong Stock Exchange hearing, with traditional Chinese medicine medical service revenue accounting for about 80%

According to the Hong Kong Stock Exchange's disclosure on September 30, Zhitong Finance APP learned that Beijing Tongrentang Medical and Health Investment Co., Ltd. (referred to as: Tongrentang Medical and Health) has passed the listing hearing on the main board of the Hong Kong Stock Exchange, with China International Capital Corporation as its sole sponsor. According to the prospectus, Tongrentang Medical and Health is a strategically focused subsidiary of Tongrentang, specializing in Chinese traditional medicine healthcare services in China. It focuses on providing comprehensive traditional Chinese medicine healthcare services to individual clients, standardized management services to institutional clients, and various pharmaceutical and other products. The company combines "medicine" and "nurturing" to provide modernized and customized traditional Chinese medicine healthcare services. As of September 23, 2025, the company has established a tiered traditional Chinese medicine healthcare service network, including 12 self-owned offline medical institutions and one internet hospital, as well as 10 offline managed medical institutions. Relying on the well-known brand "Tongrentang" and high-quality pharmaceuticals, the company has accumulated and integrated a large number of online and offline medical resources. In terms of total outpatient visits and inpatient admissions in 2024, the company is the largest traditional Chinese medicine hospital group in China's non-public traditional Chinese medicine healthcare service industry, with a market share of 1.7%. In terms of total medical service revenue in 2024, the company ranks second in the non-public traditional Chinese medicine healthcare service industry with a market share of 0.2%, accounting for 46.5% of the total market size of China's traditional Chinese medicine healthcare service industry in the same year. During the track record period, the company's revenue mainly came from traditional Chinese medicine healthcare services; management services; and sales of health products and other products. In terms of revenue contribution, the revenue generated from traditional Chinese medicine healthcare services increased by 22.1% from RMB 815 million for the year ended December 31, 2022, to RMB 995 million for the year ended December 31, 2023; the revenue from management services significantly increased from RMB 1.9 million for the year ended December 31, 2022, to RMB 9.6 million for the year ended December 31, 2023; the revenue from sales of health products and other products increased by 57.0% from RMB 87.7 million for the year ended December 31, 2022, to RMB 138 million for the year ended December 31, 2023. Tongrentang Medical and Health indicates that other listed member companies of the Tongrentang Group also provide limited traditional Chinese medicine healthcare services, but the group's main business activities focus on providing traditional Chinese medicine healthcare services. The traditional Chinese medicine healthcare services provided by its affiliated companies through in-house traditional Chinese medicine practitioners mainly serve as a supplement to their pharmaceutical retail business, differing from the company's traditional Chinese medicine healthcare services in terms of operational scale, business positioning, service scope, or target customer groups. As for the controlling shareholder, the company's ultimate controlling shareholder, Tongrentang, has the right to exercise approximately 93.83% of the voting rights of the total issued share capital directly and indirectly through Tongrentang Health, Tongrentang Heritage Fund Management, Tongrentang Medical Fund Management, Tongrentang Pension Fund, Tongkang Fund, and Tongqing Fund The prospectus indicates that the company's business operations are primarily focused on traditional Chinese medicine, and the acceptance of traditional Chinese medicine in China may change, which could have a significant impact on the company's business, financial condition, and operating performance. In addition, the company may not be able to maintain or renew the "Tong Ren Tang" trademark licensing and authorization and/or the properties leased from Tong Ren Tang. In terms of performance, for the fiscal years 2022, 2023, 2024, and the five months ending May 31, 2025, Tong Ren Tang Medical achieved revenues of approximately RMB 911 million, RMB 1.153 billion, RMB 1.175 billion, and RMB 477 million, respectively; during the same period, the profits were RMB -9.233 million, RMB 42.634 million, RMB 46.197 million, and RMB 13.062 million, respectively.