According to a disclosure by the Hong Kong Exchanges and Clearing Limited (HKEX) on February 25, Shandong Hanfang Pharmaceutical Co., Ltd. (“Hanfang Pharmaceutical”) has submitted an application for listing on the Hong Kong Stock Exchange, with Zhongtai International acting as its sole sponsor.
Founded in 2004, Hanfang Pharmaceutical is an integrated pharmaceutical company engaged in the production, sales, and R&D of traditional Chinese medicine (TCM) products. The company focuses on the treatment of skin and mucosal diseases, with its flagship product being Compound Phellodendron Liquid (Fufang Huangbai Liquid). In recent years, the company has expanded into the cosmetics sector to further diversify its product portfolio and seek new growth drivers.
As a fully integrated pharmaceutical enterprise, Hanfang Pharmaceutical operates two GMP-compliant production facilities located in Shandong Province, providing large-scale commercial manufacturing capabilities. One facility, the Shandong Hanfang TCM Industrial Park, is dedicated to the mass production of Compound Phellodendron Liquid. The other, with a total gross floor area of 22,000 square meters, is used for the production of cosmetics and classic formula-based Chinese patent medicines.
According to the prospectus, the company recorded revenues of RMB 1.053 billion, RMB 992 million, and RMB 803 million in 2023, 2024, and the first three quarters of 2025, respectively. Gross profit amounted to RMB 888 million, RMB 818 million, and RMB 677 million over the same periods. Profit for the period was RMB 237 million, RMB 199 million, and RMB 145 million, respectively.
“In the track record period, our revenue was primarily derived from three major product categories, namely topical Chinese patent medicines centered on Compound Phellodendron Liquid, cosmetics, and classic formula-based Chinese patent medicines represented by Angong Niuhuang Pills,” Hanfang Pharmaceutical stated in its prospectus.
Notably, the company’s cosmetics business mainly involves its skincare brand Slaor. According to the prospectus, the brand leverages Phellodendron-based anti-acne technology to build a dedicated cosmetics product line, including anti-acne gel, anti-acne repair ampoule serum, cleansing foam, and facial masks. Currently, Slaor’s products are primarily sold through e-commerce platforms such as Tmall, Douyin, JD.com, and Xiaohongshu.
On Tmall, the brand’s official flagship store offers five product listings priced between RMB 100 and RMB 200. The best-selling product is the Phellodendron Anti-Acne Gel, while the other products each have sales of fewer than 200 units. As of press time, the store had only 798 followers.
It is worth noting that Hanfang Pharmaceutical stated in its prospectus that the commercialization of its cosmetics and classic formula-based Chinese patent medicine businesses began relatively recently, and their revenue contribution remains low. As such, the company cannot guarantee that these segments will generate substantial or sustainable revenue and profits.
“If we fail to develop a sustainable and profitable market for such products, our strategic goal of reducing reliance on Compound Phellodendron Liquid may not be achieved, which could materially and adversely affect our future growth prospects, operating results, and financial performance,” the company said.
In terms of shareholding structure, Hanfang Pharmaceutical’s board consists of nine directors, including six executive directors and three independent non-executive directors. Among the executive directors, Qin Wenji and Qin Yinji are brothers. Qin Wenji, aged 70, is the elder brother and serves as chairman of the company, while Qin Yinji, aged 63, is the younger brother and serves as general manager. In addition, executive director Qin Chengxue is the daughter of Qin Wenji. Prior to the IPO, Qin Wenji held a 90% stake in the company, while Qin Yinji held the remaining 10%.
The prospectus also disclosed that the IPO proceeds will be used to fund the continued R&D, clinical development, and commercialization of the company’s pipeline candidates; as well as to finance the construction, renovation, and equipment installation of new production units within the Shandong Hanfang TCM Industrial Park. These investments are considered critical to diversifying the company’s product portfolio, expanding production capacity, and entering new business areas.
