According to the prospectus, New Hehua is a major supplier of traditional Chinese medicine (TCM) decoction pieces in China.
Zhitong Finance APP has learned that, according to disclosures by the Hong Kong Stock Exchange (HKEX) on October 25, Sichuan New Lotus Chinese Herbal Medicine Decoction Pieces Co., Ltd. (hereinafter referred to as "New Lotus") has passed the listing hearing for the Main Board of the HKEX. GF Securities and ABC International served as joint sponsors. According to the prospectus, New Lotus is a major supplier of traditional Chinese medicine ("TCM") decoction pieces in China. Based on data from Frost & Sullivan, New Lotus ranked second in China in terms of revenue from TCM decoction pieces in 2025, holding a 0.4% market share in a highly competitive landscape, while the top five market participants collectively held a 2.7% market share.
According to the prospectus, New Lotus has established and implemented stringent standards for the production and quality control of TCM products, integrating digital technologies into these processes. The company serves a broad base of institutional and retail clients—including hospitals and medical institutions, healthcare trading companies, pharmacies, pharmaceutical companies, and, more recently, individual consumers—by providing traditional herbal formulas, health products, and health management services. Its business operations cover most provinces in mainland China, as well as Hong Kong and Taiwan, and have expanded overseas to regions with strong demand for TCM, such as Vietnam and Malaysia.
Traditional Chinese Medicine (TCM) is a unique health resource and economic force rooted in Chinese culture, offering distinct advantages in meeting the health needs of emerging economies globally. According to Frost & Sullivan, driven by increasing health and wellness awareness as well as the growing application of digitalization and artificial intelligence, the TCM market size in China alone reached RMB 426.6 billion in 2025 and is projected to reach RMB 469.2 billion by 2035.
As of the latest practicable date, New Lotus offered over 770 types and 4,900 varieties of TCM decoction pieces, covering all major medicinal materials used in the TCM industry. During the track record period, the company primarily served institutional clients, including over 1,000 hospitals and medical institutions as well as large chain pharmacies, through offline channels, while also supplying its TCM decoction pieces to small pharmacies, clinics, and operators. Additionally, New Lotus provides consumer-oriented health products. The company also exports TCM health products and conducts business in selected international markets through localized operations.
New Lotus has developed a DNA barcode system that utilizes molecular biology techniques to identify and authenticate the species of medicinal materials used in TCM decoction pieces; this system has been adopted by the pharmacopoeias of both China and the United Kingdom. Beyond traditional hospital and pharmacy channels, the company is leveraging digital channels to broaden access to TCM. In January 2024, New Lotus launched Jin Fang Cao Tang, a platform that has streamlined the procurement process for over 7,000 clients. Some of New Lotus's raw materials are sourced from GAP-certified planting bases, and the company employs automated production lines and a supply chain traceability system to support consistent large-scale production.
In terms of financial performance, the company recorded revenues of approximately RMB 1.146 billion, RMB 1.249 billion, RMB 1.335 billion, and RMB 432 million for the years ended December 31, 2023, 2024, and 2025, and for the four months ended April 30, 2026, respectively. During the same periods, the company recorded total comprehensive income for the year of approximately RMB 104 million, RMB 90 million, RMB 107 million, and RMB 34 million, respectively.
