The Zhitong Finance App learned that according to the Hong Kong Stock Exchange's disclosure on October 25, Sichuan Xinhehua Chinese Medicine Co., Ltd. (Xinhehua) passed the Hong Kong Stock Exchange's main board listing hearing, and GF Securities and Agricultural Bank International were co-sponsors. According to the prospectus, New Lotus is a major supplier of traditional Chinese medicine (“TCM”) tablet products (i) in China. According to Frost & Sullivan's data, based on revenue from Chinese herbal medicine products in 2025, New Lotus ranked 2nd in China, accounting for 0.4% of the market share in a highly competitive market pattern, while the top five market participants together held 2.7% of the market share.
According to the prospectus, New Lotus formulates and implements strict standards for traditional Chinese medicine production and quality control, and integrates digital technology into production and quality control processes. New Lotus serves a wide range of institutional and retail customers — including hospitals and medical institutions, medical trading companies, pharmacies, pharmaceutical companies, and most recently individual consumers — providing traditional herbal formulations, health products, and health management services. The company operates in most provinces in mainland China, as well as Hong Kong and Taiwan, and has expanded overseas to regions where demand for traditional Chinese medicine is strong, such as Vietnam and Malaysia.
Traditional Chinese medicine is a unique health resource and economic power rooted in Chinese culture, and has a unique advantage in meeting the health needs of emerging global economies. According to Frost & Sullivan, in China alone, driven by increasing health and wellness awareness and the application of digitalization and artificial intelligence, the Chinese medicine market reached RMB 426.6 billion in 2025, and is expected to reach RMB 469.2 billion by 2035.
As of the last practical date, New Lotus has provided more than 770 varieties and 4,900 varieties of traditional Chinese medicine tablet products, covering all major medicinal herbs used in the traditional Chinese medicine industry. During the track record period, the company mainly served institutional customers including more than 1,000 hospitals and medical institutions and large pharmacy chains through offline channels, as well as small pharmacies, clinics and operators to provide the company's Chinese medicine tablet products. In addition, New Lotus also provides health products for consumers. In addition, the company exports traditional Chinese medicine health products and operates in selected international markets through localized operations.
New Lotus has developed a DNA barcoding system. The system uses molecular biology technology to identify and certify the varieties of medicinal herbs used in Chinese herbal medicine tablets, and has now been adopted by the Chinese and British Pharmacopeia. In addition to traditional hospital and pharmacy channels, the company also broadens access to traditional Chinese medicine through digital channels. New Lotus launched Jinfang Thatched Cottage in January 2024. The platform streamlines the procurement process for more than 7,000 customers. Some raw materials for the new lotus are purchased from GAP certified planting sites, and automated production lines and supply chain traceability systems are used to support consistent large-scale production.
On the financial side, the company recorded revenue of about 1,146 billion yuan, 1,249 billion yuan, 1,335 billion yuan, and 432 million yuan in 2023, 2024, 2025, and 2026 respectively. In the same period, the company recorded total annual revenue of about 104 million yuan, 90 million yuan, 107 million yuan, and 34 million yuan respectively.
