Good News on Listing | Frost & Sullivan Assists Shenzhen Ningyuan Technology Co., Ltd. to Successfully Go Public in Hong Kong (2656.HK)

Health160 International Limited (hereinafter referred to as 'Health160') was successfully listed on September 17, 2025. A total of 33,645,500 shares were issued globally this time (subject to the exercise or non-exercise of the over-allotment rights), of which 90% were international offerings and 10% were public offerings; the maximum offering price per share was HK$14.86, raising a net amount of approximately HK$363.6 million.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data (statistical data as of June 30, 2025), from January to June 2025, and during the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services for 29 (market share 71%), 60 (market share 67%), and 164 (market share 69%) Hong Kong IPOs respectively, ranking first in terms of number. It has a wealth of industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related agencies.

● Leading position in China's comprehensive digital healthcare service industry

The issuer has ranked as the largest digital healthcare service provider in China's comprehensive digital healthcare service industry in 2024, with a prominent industry position and leading comprehensive competitiveness.

● A vast network of hospitals and doctors

As of March 31, 2025, the platform has connected to more than 14,400 hospitals, including 3,430 tertiary hospitals; it has collaborated with over 902,300 medical staff, among whom about 46,200 are registered doctors, forming a vast and high-quality medical resource network.

● User base and activity

The platform has registered 55.2 million individual users, accumulating a large user base. In the first quarter of 2025, it achieved an average monthly active user base of about 3.3 million, demonstrating strong user stickiness and significant network effects.

● Two-wheel drive business model

The issuer operates both wholesale and retail businesses of pharmaceutical health products in sync, and provides digital healthcare solutions covering online marketing, digital hospital construction, and online health services. This forms a 'product + service' dual-wheel drive architecture to achieve sustainable monetization.

● Improvement in revenue scale and operational quality

The issuer's revenue increased from RMB 525.6 million in 2022 to RMB 628.6 million in 2023, and was maintained at the level of RMB 620.7 million in 2024. The overall operational quality has continued to improve, and the business structure has been continuously optimized.

The healthcare industry in China consists of two major sectors: health product distribution and healthcare services, which are part of the total national health expenditure and residents' health consumption. From 2019 to 2024, it grew from RMB 8.23 trillion to RMB 12.02 trillion, with an annual compound growth rate of 7.9 percentage points. It is expected that by 2030, it will reach RMB 19.65 trillion, with an annual compound growth rate of 8.5 percentage points from 2024 to 2030.

The Chinese health product distribution market refers to the full-link distribution activities of drugs, traditional Chinese medicine, and medical devices, carried out for hospitals, primary healthcare institutions, retail pharmacies, and distributors. From 2019 to 2024, it grew from RMB 2.37 trillion to RMB 2.94 trillion, with an annual compound growth rate of 4.4 percentage points. It is expected to reach RMB 4.20 trillion by 2030, with an annual compound growth rate of 6.1 percentage points from 2024 to 2030.

● China Health Products Wholesale Market

The China Health Products Wholesale Market refers to the revenue generated from bulk sales to medical institutions and pharmaceutical trading companies. From 2019 to 2024, it grew from RMB 1.89 trillion to RMB 2.31 trillion, with an annual compound growth rate of 4.1 percentage points. It is expected to reach RMB 3.26 trillion by 2030, with an annual compound growth rate of 5.9 percentage points from 2024 to 2030. The main drivers include the decentralization of procurement by primary medical institutions and the increasing demand for timeliness.

Data source: Analysis by Frost & Sullivan

● China Retail Pharmacy Market

The Chinese retail pharmacy market is a sector where end consumers purchase pharmaceuticals and health products at offline pharmacies. From 2019 to 2024, it grew from RMB 473.3 billion to RMB 630.6 billion, with an annual compound growth rate of 5.9 percentage points. It is expected to reach RMB 944 billion by 2030, with an annual compound growth rate of 7.0 percentage points from 2024 to 2030. The industry has evolved from pure offline development to offline and online collaboration, and then to the accelerated penetration of digital retail pharmacies.

Digital retail pharmacy market:

From 2019 to 2024, the amount grew from RMB 1117 billion to RMB 4956 billion, with an annual compound growth rate of 34.7 percentage points. It is expected that by 2030, it will reach RMB 11,701 billion, with the online proportion continuing to increase.

Data source: Analysis by Frost & Sullivan

China's digital healthcare comprehensive service is centered around digital hospital operation solutions and digital healthcare and wellness service platforms. It connects individuals, doctors, and medical institutions, integrating key links such as appointment scheduling, payment, examination results, follow-up visits, and health management. From 2019 to 2024, the service grew from RMB 548 billion to RMB 2203 billion, with an annual compound growth rate of 32.1 percentage points. It is expected to reach RMB 7401 billion by 2030, with an annual compound growth rate of 22.4 percentage points from 2024 to 2030. Value points include providing online consultations, appointment scheduling, and report inquiries for individuals; empowering doctors with online practice and brand building; and bringing operational efficiency improvements and low-cost cloud adoption to hospitals and private institutions.

Data source: Analysis by Frost & Sullivan

● Digital Hospital Operation Solution Market

The digital hospital operation solution market is oriented towards the institutional side, including information technology and operational solutions such as appointment scheduling, payment processing, and digitization of test results with cloud systems. The compound annual growth rate from 2019 to 2024 is 24.4 percentage points, and from 2024 to 2030, it is 17.8 percentage points.

● Digital Healthcare and Wellness Service Platform Market

The digital healthcare and wellness service platform market is a comprehensive platform connecting individuals, doctors, and healthcare institutions, providing services such as online consultation, follow-up visits, health management, and referral operations. The annual compound growth rate from 2019 to 2024 is 43.1 percentage points, and from 2024 to 2030, it is 19.5 percentage points.

● China Pharmaceutical and Health Products Wholesale Market

The market is highly competitive, with participants including large state-owned enterprises, listed companies, and numerous private enterprises. In 2024, there were over 15,000 market participants, with the top five companies accounting for about 57.0% of the total market share by revenue.

Data source: Analysis by Frost & Sullivan

● China's Digital Retail Pharmacy Market

The market is dynamic and highly competitive, with over 400 participants in 2024. The overall concentration is dominated by a few leading platforms, while other participants share the market through differentiated strategies.

China's Digital Healthcare Comprehensive Service Market

Data source: Analysis by Frost & Sullivan

● China Online Marketing Solutions Industry

The industry is diverse with fierce competition, mainly including: digital healthcare service companies that offer online appointment/registration services, digital healthcare information companies that provide medical health information, digital retail pharmacies that sell drugs online, and social media platforms focused on healthcare content. The companies possess both digital healthcare service providers and digital retail pharmacy roles, capable of providing a wide range of online marketing solutions for medical health institutions and doctors, as well as selling diversified health products to individual users. As a result, the company ranked third in online marketing solution revenue among digital healthcare enterprises listed on the Hong Kong Stock Exchange in 2024.

● China's online medical service industry

The industry encompasses services such as online consultations and diagnoses, characterized by high dispersion and numerous competitors. Platforms connecting to a large number of doctors are more favored by users, as this means broader access to medical resources. The company ranks among the top in the industry in terms of 'number of connected healthcare staff' as of December 31, 2024, and is also ranked first among digital healthcare companies listed on the Hong Kong Stock Exchange in terms of 'number of cooperative hospitals' and 'number of connected healthcare staff'.

●China Health Products Wholesale Market

The fragmentation of procurement in primary healthcare institutions has led to high-frequency, small-batch demands, increasing the requirements for efficient and timely distribution and upstream/downstream collaboration. The aging population and changes in the disease spectrum drive rigid demand; in 2024, the population aged 65 and above was 220.2 million, accounting for 15.6%. The continuous advancement of policies related to out-of-pocket prescription flows has accelerated the transfer of drugs from hospitals to pharmacies, leading to growth in wholesale demand.

●China's digital retail pharmacy market

Policy benefits continue to be released. In 2022, detailed rules for internet diagnosis and treatment supervision were issued. The medical insurance department promoted the inclusion of designated retail pharmacies into outpatient co-ordination and supported online settlement, accelerating the outflow of prescriptions. User habits are accelerating towards onlineization, with the popularization of smartphones and the preference for convenient experiences leading to conversion and retention. The medical consumption capacity of residents has increased, the structure of netizens has tilted towards middle-aged and elderly people, and the willingness to seek medical treatment and take medications has risen, driving the growth of online retail revenue.

●China's Digital Healthcare Comprehensive Service Industry

Policies drive digital transformation, with internet plus healthcare and the '14th Five-Year Plan' for national health promoting the construction of internet hospitals and online chronic disease management. Technological progress enhances accessibility and collaboration efficiency, while cloud computing and big data facilitate resource sharing and communication efficiency. Health awareness and spending are on the rise, with per capita health expenditure increasing from 3,756.7 yuan in 2017 to 6,452.3 yuan in 2023, with a compound growth rate of 9.4% from 2017 to 2023. The evolution of behavior patterns and the impact of the pandemic have jointly accelerated the penetration of online services.

●China Digital Hospital Operation Solution Market

Hospitals have a strong demand for cost-effective digital solutions, and budget constraints are driving the penetration of lightweight solutions such as cloud-based SaaS. The demand for multi-site practice is rising, with healthcare institutions attracting and empowering high-quality medical staff by building internet hospitals. With the improvement of relevant standards and policies, the requirements for informatization and interconnectivity are elevating the demand for digital construction.

●China Digital Healthcare and Wellness Service Platform Market

The demand for online medical and health services continues to grow, with remote consultation and online follow-up visits becoming normalized. Industrial collaboration has strengthened, forming a closed loop between platforms and hospital digital solutions, improving connection and delivery efficiency. The trend of enhanced health awareness and prioritizing prevention is evident, with consumer-oriented medical needs such as physical examinations and health management expanding. User experience has become a core competitive point, with the completeness of appointment information and follow-up management capabilities driving upgrades in institutions and platforms.

●China Pharmaceutical and Health Products Wholesale Market

Government supervision is tightening: To ensure the safety, quality, and effectiveness of drugs and health products, relevant government departments are continuously strengthening supervision at multiple levels such as labels, transportation, warehousing, and post-marketing supervision, raising the entry threshold for the industry.

Establishment of Brand Cognition: Downstream customers in the wholesale sector place more emphasis on product quality and delivery capabilities. Leading enterprises have formed brand cognition and trust through years of accumulation. New entrants find it difficult to accumulate experience and build a reputation in the short term.

Implementation of a standardized management system: The development of online healthcare and pharmaceutical e-commerce has made demand more diverse and dispersed. Industry leaders have formed deep data insights, industry experience, and technical barriers through a standardized management system, making it difficult for new entrants to replicate or surpass them in the short term.

●China's digital retail pharmacy market

Consumer Trust and Brand Cognition: Consumers tend to choose well-known platforms due to factors such as product quality. Established platforms have accumulated a large user base and possess higher loyalty, making it difficult for newcomers to build brand and trust in the short term.

Market Concentration: Although there are many participants, a few leading firms hold a high share. New entrants need to compete differently from existing strong platforms.

Legal and compliance requirements: Operating digital retail pharmacies requires specialized permits and adherence to specific regulatory requirements, which are complex and incur high compliance costs.

●China Digital Healthcare and Wellness Service Platform Market

Demand-side barriers: Platform awareness and user trust: The particularity of healthcare services makes platform awareness and user trust crucial. New platforms need time to cultivate user habits and brand recognition, making customer acquisition and promotion more challenging compared to mature platforms.

Supply-side barriers: The ability to connect medical resources: The platform needs to integrate medical and health institutions, healthcare staff, and a variety of medical/health services (including prevention and management). Participants that can cover consumer-oriented medical services such as physical examinations and health management have an obvious advantage, as newcomers find it difficult to provide comprehensive medical resources in the short term.

Frost & Sullivan integrates 64 years of global consulting experience, has dedicated 27 years to serving the booming Chinese market, and uses a global perspective to help clients accelerate their corporate growth, achieving industry-leading benchmarks in terms of growth, innovation, and leadership. The healthcare industry is one of Frost & Sullivan's core areas of focus. Over the past 20-plus years, the Frost & Sullivan team has provided financing and financial advisory services, IPO industry advisory services, strategic consulting, and management consulting to hundreds of outstanding domestic and international biopharmaceuticals, medical devices, healthcare services, and internet healthcare companies. Successful listings include: Yinuo Medicine (2591.HK), Zhonghuiyuantong (2627.HK), Dongguangyang Medicine (6887.HK), Weilizhibo (9887.HK), Bokang Xiyun (2592.HK), Yunzhisheng (9678.HK), TED Medicine (3880.HK), Baize Medical (2609.HK), Yaojie Ankang (2617.HK), Jiangsu Hengrui Medicine (1276.HK), Mire (2629.HK), Ying'en Biology (9606.HK), Weisheng Pharmaceutical (2561.HK), Yasheng Medicine Group (NASDAQ:AAPG), Brain Motion Aurora (6681.HK), Health Road (2587.HK), Huahao Zhongtian (2563.HK), Yinosi (688710.SH), Jingtai Technology (2228.HK), Yimai Sunshine (2522.HK), Shenghe Biology (2898.HK), Quanxin Biology (2509.HK), Meizhong Jiahe (2453.HK), WuXi AppTec (2268.HK), Neusoft Xikang (9686.HK), Youzhiyou (2496.HK), Yiming Angke (1541.HK), Kerenbo Tai (6990.HK), Lai Kai Medicine (2105.HK), Lvgreen Biology (2480.HK), Meis Health (2415.HK), PHECR, Zhongjin Medical (NASDAQ:ZJYL), Meiliyuan (2373.HK), Kangfeng Biology (6922.HK), Bao'an Biology (6955.HK), Sidi (1244.HK), Meihao Medical (1947.HK), Gaoshi Medical (2407.HK), Lepu Xintai (2291.HK), Jianshi Technology (9877.HK), Health Yuan (JCARE.SW), Lepu Medical (LEPU.SW), Dingdang Health (9886.HK), Bao'osai Tu (2315.HK), Zhiyun Health (9955.HK), Mein Gene (6667.HK), PRE.NASDAQ, Yunkang Group (2325.HK), Rike Biology (2179.HK), Lepu Biology (2157.HK), Baxin An (2185.HK), Yonghe Medical (2279.HK), Kailai Ying (6821.HK), Beihai Kangcheng (1228.HK), Gusheng Tang (2273.HK), Yingpeng Technology (2251.HK), Minimally Invasive Robotics (2252.HK), Harmony Kamane (2256.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimai Tong (2192.HK), Tengsheng Bopharm (2137.HK), Connaia (2162.HK), Chaoyuju Eye Hospital (2219.HK), Guichuang Tongqiao (2190.HK), Hehuang Medicine (0013.HK), Koji Pharmaceutical (2171.HK), Zhaoke Eye Hospital (6622.HK), Nature Medicine (UPC.NASDAQ), Sainfo Pharmaceutical (6600.HK), Zhaoyan New Drug (6127.HK), Novogene Health (6606.HK), Tianyan Pharmaceutical (ADAG.NASDAQ), Beikang Medical (2170.HK), Jianbimiao Miao (2161.HK), Minimally Invasive Xin Tong (2160.HK), Jiake Pharmaceutical (1167.HK), HepB Biopharmaceuticals (2142.HK), JD Health (6618.HK), Deqi Pharmaceutical (6996.HK), Rongchang Biology (9995.HK), WuXi AppTec (2126.HK), Xiansheng Pharmaceutical (2096.HK), Yunding New Yao (1952.HK), Jiahe Biology (6998.HK), Zai Ding Medicine (9688.HK), Oikang Vision (1477.HK), Yongtai Biology (6978.HK), Hapu Pharmaceutical (9989.HK), Kaidao Pharmaceutical (9939.HK), Peijia Medical (9996.HK), Kangfang Biology (9926.HK), Nuo Cheng Jianhua (9969.HK), Tianjing Biology (IMAB.NASDAQ), Kanglong Chemical (3759.HK), China Antibody (3681.HK), Dongyao Pharmaceutical (1875.HK), Yasheng Medicine (6855.HK), Fuhong Hanlin (2696.HK), Hansoh Pharmaceutical (3692.HK), Mabot Pharmaceutical (2181.HK), Fangda Holdings (1521.HK), Via Bio (1873.HK), Cornerstone Pharmaceuticals (2616.HK), Junshi Biosciences (1877.HK), WuXi AppTec (2359.HK), Xinda Biosciences (1801.HK), Hualing Medicine (2552.HK), BeiGene (6160.HK), Gilead Sciences (1672.HK), WuXi AppTec (2269.HK), China Resources Medicine (3320.HK), Yakuten Scientific & Pharmaceutical (2633.HK), HCM China Medicine (HCM.NASDAQ), Biotechnology (1548.HK), BBI Life Sciences (1035.HK), Tongyuan Kang Medicine (2410.HK), etc. In terms of the number of listed projects, the Frost & Sullivan healthcare team maintains an absolute leading position in Hong Kong's healthcare IPO market, consistently ranking first in market share from 2018 to 2023.

Since the listing of the first batch of companies on the Sci-tech Innovation Board in July 2019, Frost & Sullivan reports have been widely cited in the prospectuses of leading Sci-tech Innovation Board listed companies in the industry. These include: Hanbang Technology (688755.SH), Zhongyan Shares (688716.SH), Optics Technology Group Co., Ltd. (688450.SH), Jinghe Integration (688249.SH), Wuxi Rilian (688531.SH), Maolai Optics (688502.SH), Kangwe Century (688426.SH), Jincan Protein (688137.SH), Novogene (688428.SH), Aopu Medical Biotechnology Co., Ltd. (688293.SH), MicroPort Neurosurgery (688351.SH), Mengke Pharmaceutical Co., Ltd. (688373.SH), Yifang Biotechnology (688382.SH), Jicui Pharmaceutical (688046.SH), Haichuang Pharmaceutical Co., Ltd. (688302.SH), Rongchang Biotechnology (688331.SH), Rendu Biotechnology (688193.SH), Shouyao Holdings (688197.SH), Heyuan Biotechnology (688238.SH), Yaxin Security (688225.SH), Xidi Micro (688173.SH), Mawei Biotechnology (688062.SH), Yahong Medicine (688176.SH), BeiGene (688235.SH), Jiameng Medical (688246.SH), Dizhe Medicine (688192.SH), Novozyme (688105.SH), Chengda Biotechnology (688739.SH), Geke Micro (688728.SH), Huaxi Biotechnology (688363.SH), Junshi Biotechnology (688180.SH), Zhejiang Oncology (688266.SH), BeiGene (688177.SH), Shenzhou Cells (688520.SH), etc., are considered to be one of the most powerful, professional, and influential industry research institutions in the sector. We hope to work with enterprises to understand industry trends, seize development opportunities, jointly promote innovation and upgrading of China's healthcare industry, and build a healthy future.