New stock news | Foreign pharmaceutical company Zhixinyu Pharma specializing in dermatology has submitted an application to the Hong Kong Stock Exchange, planning to launch 15 to 20 new products in the next 3-5 years.

According to the disclosure by the Hong Kong Stock Exchange on July 9, Jiangsu Zhiyuan Pharmaceutical Co., Ltd. (referred to as Zhiyuan Pharmaceutical) has submitted its listing application to the main board of the Hong Kong Stock Exchange, with CITIC SEC as its exclusive sponsor. Company Overview Zhiyuan Pharmaceutical is a Chinese pharmaceutical company specializing in the field of dermatology. The company has leading products in multiple treatment areas, providing comprehensive solutions covering skin medications and medical-grade skincare products from head to toe. The company's product portfolio covers all skin areas, including the scalp and hair, face, trunk, limbs, and nails, spanning six core treatment areas including facial skin diseases, superficial fungal infections, onychomycosis, immunoinflammatory skin diseases, pigment disorders, and scalp and hair diseases. As of the last practicable date, the company has commercialized over 50 products in the six core treatment areas. According to Frost & Sullivan data, Zhiyuan Pharmaceutical's commercialized products cover eight major dermatological indications in China, with an estimated total of approximately 843 million cases in 2025. The company has established the broadest coverage of high-incidence dermatological indications in China, leading the market in disease areas with over 20 million annual patients. In addition to the company's commercialized products, as of the last practicable date, it also has a product pipeline with over 30 candidate products, including three innovative drug candidate products approved for China's IND, and three candidate products that have completed regulatory filing for pre-IND in the United States. According to Frost & Sullivan data, in the three years prior to the last practicable date, the company ranked first in the total number of dermatological topical drugs declared and granted marketing authorization in China. As of the last practicable date, the company's product pipeline has over 30 candidate products and plans to launch 15 to 20 new products in the next three to five years. Financial Information Revenue In the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 1.031 billion, RMB 1.126 billion, and RMB 1.324 billion, respectively. Gross Profit In the fiscal years 2023, 2024, and 2025, the company recorded gross profits of approximately RMB 739 million, RMB 776 million, and RMB 884 million, respectively. Net Profit In the fiscal years 2023, 2024, and 2025, the company's net profits were approximately RMB 146 million, RMB 45.599 million, and RMB 94.516 million, respectively. Industry Overview The market for skin treatment and medical-grade skincare in China has experienced rapid growth and is expected to continue strong growth. With the increasing burden of skin diseases, rising diagnosis rates, growing consumer demand for medical-grade skincare products, and increasing public demand for overall skin health and aesthetics, the combined market size in retail sales is expected to increase from RMB 43.8 billion in 2021 to RMB 80 billion in 2025, with a compound annual growth rate of 16.2%. Looking ahead, the market is expected to enter a phase of continuous expansion. The total market size is expected to nearly double between 2025 and 2030, reaching RMB 170.6 billion, with a compound annual growth rate of 16.4%. By 2035, the market size is expected to reach RMB 284 billion. In this context, the medical-grade skincare market segment has strong momentum, with a growth rate exceeding that of therapeutic products, driven by increased public attention to skin appearance and growing awareness of skin barrier health. From 2021 to 2025, the compound annual growth rate for the medical-grade skincare segment is 18.9%. Meanwhile, driven by the standardization of diagnosis and treatment pathways for chronic skin diseases, the skin treatment sub-market also maintains strong growth during the same period, with a compound annual growth rate of 13.5%. According to Frost & Sullivan data, in 2025, the total number of cases for the eight major dermatological indications in China is estimated to be approximately 843 million (cases may overlap). The following image shows the number of patients with major skin diseases in China up to 2025. Driven by the increasing prevalence of skin diseases, heightened patient awareness, and the convenience of self-medication, the market for topical skin medications in China is showing strong growth. Particularly, the structural shift in market growth towards online channels is a key characteristic of the market's growth. The following image shows the market size of topical skin disease treatments in China from 2021 to 2035 (expected). Board of Directors Information The board of directors will consist of four executive directors, two non-executive directors, and three independent non-executive directors. The director's term is three years and can be re-elected after the term expires. Equity Structure According to the joint action agreement, Mr. Xie agreed to take unified actions with Mr. Xu at the Wuxi Zhonghe and at the company's board and shareholder meetings. As of the last practicable date, (i) Wuxi Zhonghe is a general partner of Wuxi Langming, Wuxi Langwei, and Wuxi Langyi; and (ii) Mr. Xu is a general partner of Wuxi Langxing and Wuxi Zhiwen. Therefore, according to the Securities and Futures Ordinance, Mr. Xu, Mr. Xie, Wuxi Zhonghe, Wuxi Langming, Wuxi Langwei, Wuxi Langyi, Wuxi Langxing, and Wuxi Zhiwen are each considered to hold interests in their respective shares. As of the last practicable date, Ms. Cai Huiyu holds a 99.00% interest in Gangyong. Wuxi Boyi is a limited partnership managed by Mr. Xu Dacheng (Ms. Cai Huiyu's spouse) as a general partner. Therefore, according to the Securities and Futures Ordinance, Ms. Cai Huiyu and Mr. Xu Dacheng are considered to hold interests in the total of 12,096,442 shares held by Gangyong and Wuxi Boyi. Intermediary Team Exclusive Sponsor: CITIC SEC (Hong Kong) Limited Company Legal Advisors: King & Wood Mallesons, Zhong Lun Law Firm Exclusive Sponsor Legal Advisors: Conyers Dill & Pearman, Deheng Shanghai Law Office Reporting Accountants and Independent Auditors: KPMG Industry Consultants: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Consultants: DHC Advisory (Hong Kong) Limited