List Announcement | Frost & Sullivan Supports Beijing Tongrentang Medical & Care Investment Co., Ltd. in Successfully Listing in Hong Kong (2667.HK)

Beijing Tongrentang Medical & Care Investment Co., Ltd. (hereafter referred to as "Tongrentang Medical & Care") was successfully listed on July 7, 2026. The company plans to issue 108,153,500 H shares, with 90% for international offerings and 10% for Hong Kong offerings. The highest issue price per share is HK$6.21, and the maximum fundraising amount can reach HK$670 million.

During the Hong Kong listing process, Frost & Sullivan carried out 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, business, etc.), 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 June 30, 2026), in the past 36 months and 12 months, and from January to June 2026, Frost & Sullivan provided listing industry consulting services for 212 (market share: 69%), 111 (market share: 71%), and 58 (market share: 69%) Hong Kong IPO companies, ranking first in terms of number of services provided. It has rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and related organizations.

• As of the latest practical date, the company has established a hierarchical traditional Chinese medicine medical service network, including 13 self-operated offline medical institutions and 1 internet hospital, and manages 13 offline medical institutions. Leveraging Tongrentang’s strong brand reputation and high-quality drug resources, the company integrates online and offline resources to form a coordinated development pattern.

• In terms of total outpatient and inpatient visits in 2025, it is the largest traditional Chinese medicine hospital group in the non-public traditional Chinese medicine medical service industry in China, with a market share of 1.5%. In terms of total revenue from traditional Chinese medicine medical services in 2025, it ranks second with a market share of 0.2% in the non-public traditional Chinese medicine medical service industry, and its market size accounts for 54.9% of the total market size of the domestic traditional Chinese medicine medical service industry in that year.

• The company provides traditional Chinese medicine treatment services covering all departments. It has 13 offline for-profit medical institutions, including 7 hospitals, 3 outpatient departments, and 3 clinics, which can fully meet diverse medical and health needs. In addition, the company integrates external doctors and pharmacies through the internet hospital to expand the service radius and cover a wider range of customers across the country.

• With rich medical resources and management experience, the company provides multi-level management and supply chain services for institutional clients: through a multi-functional procurement collaboration platform, it helps drug production and trading enterprises improve the sales efficiency and convenience of traditional Chinese medicine slices; it provides full-chain supply chain support for pharmaceutical trading companies, enhancing the sales efficiency and convenience of traditional Chinese medicine and Western medicines; and it provides management services for medical institutions, charging corresponding service fees. The company manages 13 offline medical institutions, including 9 hospitals, 1 outpatient department, and 3 community health service institutions.

• The company actively expands the industrial value chain by selling pharmaceutical products through both retail and wholesale models. The sales channels are independent of medical institutions, including independent stores in Jinhua, Zhejiang, to explore diversified income sources.

As an important part of the Chinese medical service industry, the traditional Chinese medicine medical service industry has established a solid development foundation and shows broad growth prospects. Traditional Chinese medicine medical institutions, as the core entities in this field, are widely distributed and diverse in type, mainly including: (i) traditional Chinese medicine hospitals; (ii) traditional Chinese medicine outpatient departments; (iii) traditional Chinese medicine clinics; (iv) other traditional Chinese medicine medical institutions, such as community health service centers providing traditional Chinese medicine services. As of December 31, 2025, traditional Chinese medicine hospitals, as the core component of traditional Chinese medicine medical services, accounted for only about 0.6% of the total number of medical institutions in the country. Their scarcity highlights the lack of high-quality traditional Chinese medicine resources in the overall medical system. Data shows that the number of traditional Chinese medicine hospitals increased steadily from 5,232 at the end of 2019 to 6,616 at the end of 2025, with a compound annual growth rate of 4.0%. Among them, non-public traditional Chinese medicine hospitals were particularly prominent, increasing from 2,525 to 3,635, with a compound annual growth rate of 6.3%.

In terms of total revenue of traditional Chinese medicine medical service institutions, the market size of the Chinese traditional Chinese medicine medical service industry increased from RMB 65.99 billion in 2019 to RMB 107.21 billion in 2025, with a compound annual growth rate of 8.4% during this period, accounting for 15.3% of the total market share of the Chinese medical service industry in 2025. It is expected that the market size will reach RMB 169.06 billion by 2030, with a compound annual growth rate of 9.5% from 2025 to 2030, and its share in the overall medical service industry will increase to 16.8%.

The following chart shows the market size of the Chinese traditional Chinese medicine medical service industry in the indicated years (classified by the nature of medical institutions).

Source: National Health Commission, Frost & Sullivan analysis

The following chart shows the market size of the Chinese traditional Chinese medicine medical service industry in the indicated years (classified by for-profit and non-for-profit).

Source: National Health Commission, Frost & Sullivan analysis

The following chart shows the market size of the Chinese traditional Chinese medicine medical service industry in the indicated years (classified by non-public and public).

Source: National Health Commission, Frost & Sullivan analysis

The Chinese medical institution management service industry has developed rapidly in recent years and plays a key role in improving the operational efficiency of medical institutions. Professional management service providers help cooperative medical institutions enhance operational efficiency, service quality, and overall performance by providing management resources and multidisciplinary professional capabilities, and charge management service fees according to agreed terms. With professional external management support, managed medical institutions can integrate higher-quality medical resources, optimize management processes, improve patient satisfaction, and ultimately provide higher-quality, more efficient medical services. The Chinese traditional Chinese medicine medical service industry is characterized by decentralization and lacks a standardized and systematic management system. In this context, excellent traditional Chinese medicine medical service institutions, relying on their long-term accumulated professional knowledge and management experience, provide management services for medical institutions facing problems in operational efficiency and service quality, and offer mature operation models and management experience.

The market size of the Chinese medical institution management service industry, measured by the total revenue of management institutions, increased from RMB 8.9 billion in 2019 to RMB 34.2 billion in 2025, and is expected to reach RMB 65.5 billion by 2030, with a compound annual growth rate of 13.9% from 2025 to 2030.

The following chart shows the market size of Chinese medical institution management services in the indicated years.

Source: Frost & Sullivan analysis