Listing Success | Frost & Sullivan Supports Longfeng Group Holdings Limited in Successful Listing in Hong Kong (2290.HK)

YUAN CAPITAL was successfully listed on June 5, 2026. The company plans to issue a total of 125,000,000 shares globally, with an offering price range of HK$5.18 to HK$6.38 per share. The expected total fundraising amount can reach up to approximately HK$798 million.

During the listing process, Frost & Sullivan undertook the following tasks: helping the issuer accurately and objectively understand its position in the target market, using objective market data to identify, support, and highlight the issuer’s competitive advantages, assisting the issuer, investment banks, and other intermediaries in writing important sections of the prospectus such as overview, competitive advantages and strategy, industry overview, and business, helping the issuer communicate with the Stock Exchange and investors, and assisting the issuer in responding to various questions from the Stock Exchange regarding the industry.

Frost & Sullivan has always been a leader in helping companies list on the Hong Kong stock market. According to LiveReport Big Data (data as of March 31, 2026), over the past 36 months and 12 months, and from January to March 2026, Frost & Sullivan provided listing industry consulting services for 195 Hong Kong IPO companies (market share of 71%), 101 companies (73%), and 30 companies (77%) respectively, ranking first in terms of number of services provided. Frost & Sullivan possesses rich industry experience and communication skills with regulatory authorities, exchanges, investment institutions, and related organizations.

Health products refer to over-the-counter (OTC) health and wellness products used to maintain or improve normal bodily functions and alleviate daily discomfort; as well as over-the-counter beauty products used to improve body contour and enhance skin texture. Health products are mainly divided into four categories: First, nutritional and herbal supplements, primarily in oral form, including pills, capsules, tablets, powders, granules, liquids, or semi-solid forms, aimed at supplementing daily diet and supporting immune protection, cognitive function, bone density, eye care, cardiovascular health, liver function, vascular elasticity, and overall metabolic balance; second, topical pain relief products, including gel patches, creams, gels, sprays, and other local application formulations, as well as tourmaline or magnetic accessories and support bands, which relieve muscle, joint, or nerve pain through heat, pressure, swelling reduction, or anesthesia; third, body shaping products, mainly oral formulas such as fiber powder, enzyme powder, probiotics, and plant capsules, metabolic boosters, etc., which help with fat metabolism, reduce bloating, and tighten body contour, supplemented by topical creams and massage oils; fourth, beauty and skincare nutrients, mainly consisting of oral collagen peptides, ceramides, antioxidants, vitamins, NMN, etc., in forms such as powders, capsules, soft candies, etc., with effects including whitening, anti-aging, reducing wrinkles, enhancing elasticity, and comprehensive anti-aging, often used together with topical beauty oils or serums.

The retail sales value of Hong Kong health products increased from HK$107.8 billion in the 2021 financial year to HK$121.1 billion in the 2025 financial year, with a compound annual growth rate of approximately 3.0%. Despite disruptions in the retail market caused by COVID-19, the market remained resilient. This resilience is mainly due to several factors: a significant increase in public awareness of health after the pandemic, the normalization of taking supplements as a habit, and the expansion of the consumer group from mainly middle-aged and elderly to a broader age range; the aging population trend increases spending on preventive nutrients, mainly for joint, cardiovascular, and cognitive health; the rise of cross-border e-commerce platforms significantly increases the variety of products available and improves price transparency. With enhanced health awareness, aging population, and a surge in demand for personalized and natural products, the retail sales value of Hong Kong health products is expected to grow at a compound annual growth rate of 5.2% from the 2026 financial year to the 2030 financial year, reaching HK$156.4 billion in the 2030 financial year.

Source: Frost & Sullivan Report

●The number of fitness enthusiasts and athletes continues to increase

The increasing number of fitness enthusiasts and athletes in Hong Kong significantly drives demand for health products. Portable product formats are suitable for Hong Kong’s fast-paced lifestyle, and influencer endorsements and community-led fitness trends further promote market expansion. As fitness culture continues to develop, brands of supplements designed specifically for active individuals, with innovative and scientifically supported ingredients, will fully capture the growing demand for health products.

●Advancements in Formulation Technology

Demand for Hong Kong health products is strongly driven by the trend of innovative formulations. These advanced formulations enhance the effectiveness of supplements by improving bioavailability, ensuring that key ingredients such as glucosamine, chondroitin, collagen, or curcumin are more effectively absorbed by the body. Technologies such as liposomes or nanoformulations encapsulate active ingredients in tiny particles, significantly increasing absorption rates, making products more effective in relieving joint pain and supporting cartilage health. In Hong Kong, these innovations are particularly popular among health-conscious consumers. Innovative formulations not only meet changing consumer needs and improve product performance but also help brands stand out in a competitive market, becoming a key driver of growth in the Hong Kong health products market.

Pharmaceutical products refer to substances or preparations used for preventing, diagnosing, treating, or alleviating human diseases, conditions, or medical issues, mainly divided into Western medicine and traditional Chinese medicine. Western medicine refers to scientific formulations developed through modern medical research and clinical trials, strictly regulated by institutions such as the Hong Kong Health Department, including prescription drugs (such as antibiotics, blood pressure medications), over-the-counter drugs (OTC, such as ibuprofen pain relievers, cold medicines), and vaccines. They are characterized by standardized chemical components, clinical testing, and evidence-based treatment effects; traditional Chinese medicine, on the other hand, are traditional products based on traditional Chinese medicine theory, using herbs, animals, or minerals as sources, including traditional Chinese medicine slices, powders, pills, and topical preparations (such as ginseng, astragalus, or baijiu pills), regulated by the Traditional Chinese Medicine Ordinance in Hong Kong, including pre-packaged traditional Chinese medicine and herbal medicines prescribed by registered traditional Chinese medicine doctors.

The Hong Kong pharmaceutical products market increased from HK$57.9 billion in the 2021 financial year to HK$85.1 billion in the 2025 financial year, with a compound annual growth rate of 10.1%. This growth is mainly driven by aging population and increased healthcare spending. This demographic shift significantly increases demand for pharmaceutical products, as older people require more frequent and specialized medical treatments. The Health Department’s Pharmaceutical and Poisons Administration has optimized the drug registration process, reducing the approval time from 12–18 months before 2020 to 9–15 months in the 2024–2025 financial years, accelerating the entry of innovative therapies into the market. The “1+” mechanism introduced in the 2024 financial year further speeds up the approval process for drugs already registered in reference markets such as the United States, European Union, or Japan. The pandemic also stimulated demand for vaccines, antiviral drugs, and immune-boosting drugs, and OTC sales also increased. Looking ahead, the market is expected to reach HK$113.1 billion in the 2030 financial year, with a compound annual growth rate of 6.4% from the 2026 financial year to the 2030 financial year.

Source: Frost & Sullivan Report

●Trend of Traditional Chinese Medicine Integration

Traditional Chinese medicine is the cornerstone of Hong Kong’s healthcare culture, with a history of hundreds of years, widely used for treating symptoms such as joint pain, fatigue, and respiratory problems. Pharmaceutical products containing traditional Chinese medicine ingredients, such as anti-inflammatory drugs containing turmeric or cough syrups containing loquat extract, are well-received by consumers who value the natural and holistic benefits of traditional Chinese medicine. The integration of traditional Chinese medicine and pharmaceutical products becomes a key driver of sales in the Hong Kong pharmaceutical products market. This trend aligns with Hong Kong’s cultural values, preventive healthcare trends, and modern consumers' preference for convenience. To seize this opportunity, pharmaceutical companies are increasing investment in traditional Chinese medicine formulation research to meet the regulatory requirements of the Hong Kong Pharmaceutical and Poisons Ordinance, and highlighting the authenticity and efficacy of products through digital marketing. Cooperation with traditional Chinese medicine doctors or well-known traditional Chinese medicine brands, such as Yu Ren Sheng, further enhances product credibility. Market participants who can effectively combine traditional Chinese medicine with modern pharmaceutical innovation will likely achieve sustained sales growth and capture local and regional market opportunities.

●Personalized Medicine Trend

The personalized medicine trend is a key driver of sales in the Hong Kong pharmaceutical products market. This trend meets the needs of Hong Kong consumers who value health and are familiar with technology for customized health solutions, supported by advanced technologies such as AI and gene testing. Hong Kong consumers have high health literacy and easy access to digital platforms, so they tend to choose pharmaceutical products tailored to their specific needs, such as personalized vitamin programs or OTC products for specific conditions like joint pain and skin health. For example, local retailers such as Watsons have launched AI applications that recommend appropriate supplements based on consumers' lifestyle habits or health data, greatly increasing consumer trust and engagement. This personalized demand strongly promotes the sales of personalized OTC products and prescription drugs, especially in categories such as dermatology and nutrition products.

Beauty products cover a wide range of personal care categories aimed at enhancing or maintaining appearance, personal hygiene, or aesthetic appeal. These products mainly include two categories: cosmetics and skincare products. Cosmetics refer to products applied to the face, body, or hair to enhance appearance, such as makeup (lipsticks, foundations, eyeshadow, mascara), nail polish, and hair styling products (bleaching agents, hairspray), mainly used for adding color, covering up, or styling purposes; skincare products are formulated to maintain, protect, or improve skin condition, including cleansers, moisturizers, serums, toners, sunscreens, exfoliants, and treatment products (such as anti-aging creams, acne treatment products), focusing on promoting skin health, moisturization, protection, or providing solutions for specific skin issues.

The Hong Kong beauty products retail market expanded from HK$56.5 billion in the 2021 financial year to HK$88.6 billion in the 2025 financial year, with a compound annual growth rate of approximately 11.9%, and is expected to reach HK$130.8 billion in the 2030 financial year, with a compound annual growth rate of about 8.1% from the 2026 to 2030 financial years. Strong growth occurred in the 2024 financial year, mainly due to social distancing measures and the full lifting of border controls, leading to a wave of non-essential product purchases and a rapid recovery in physical store traffic. Brands are accelerating product innovation around clean ingredients, anti-aging active ingredients, and personalized care solutions, while using live commerce and KOL marketing to shorten the path from product launch to sale and support premium pricing. Promotions such as “Hello Hong Kong” and “Hong Kong Night Vibes” increased tourist numbers, providing additional growth opportunities for flagship stores and travel retail channels. Looking ahead, the measures proposed in the Hong Kong Tourism Development Blueprint 2.0 by the government are expected to continue increasing tourist flow, with the main growth drivers being local wealthy consumers, continuous premiumization trends, and rapid digital development of beauty retail.

Source: Frost & Sullivan Report

●Diversified Consumer Base

The Hong Kong beauty products market (including makeup, hair styling products, and skincare products such as serums, anti-aging creams) is growing due to the diversified consumer base, now including male fitness enthusiasts, young consumers, and traditional female demographics, with purchasing power expanding across gender, age, and lifestyle levels. Fitness centers and male grooming influencers actively promote antioxidant powders and peptide drinks as skincare supplements for muscle recovery and skin firming, making the use of such products more common among men. Meanwhile, college students and young office workers drive demand for fiber, probiotic, and enzyme supplements to support weight management and digestive health, complementing skincare products for a busy lifestyle, collectively improving skin health and preventing aging. This trend is further amplified by Hong Kong’s social media culture and robust e-commerce ecosystem, broadening the market base and reducing dependence on a single demographic. Brands that can provide innovative makeup and skincare solutions for these diverse groups will have a stronger advantage in sustained success.

● Shortened Product Launch Cycle

The rapid launch of new beauty products (including makeup such as lipsticks and nail polishes, and skincare such as serums, sunscreen, and anti-aging treatment products) through cross-border e-commerce strongly supports growth in the Hong Kong beauty market, allowing brands to quickly meet local trend-driven consumer demands. Retailers shorten the product launch cycle, enabling K-beauty serums or Western vegan cosmetics to reach consumers within a few weeks, fully leveraging social media trends and live commerce opportunities. The rise of e-commerce not only promotes innovation but also offers consumers a variety of novel products, such as moisturizing toners and limited-edition makeup. Efficient logistics and digital marketing further amplify this trend, allowing brands and retailers to test niche products and better serve international and health-conscious consumers in Hong Kong, achieving sustained sales growth through agility and quick response.

In the 2025 financial year, the overall Hong Kong health, pharmaceutical, and beauty products retail market was highly competitive, with the top five retailers accounting for a combined market share of 27.4% based on retail sales value. Our group ranks third among Hong Kong health, pharmaceutical, and beauty products retailers, with a market share of 5.8% based on the total retail sales value of this category.

Source: Frost & Sullivan Report