Sichuan Neautus seeks Hong Kong listing amidst $345b TCM market shake-up

Procurement tightening reshapes competition in China’s traditional medicine supply chain.

Sichuan Neautus Traditional Chinese Medicine (Pieces) Co., Ltd. has filed for an initial public offering in Hong Kong after completing its filing with the China Securities Regulatory Commission on 30 April 2026.

The company operates in China’s traditional Chinese medicine (TCM) decoction pieces sector, which has an estimated market size of about $345b (RMB300b) and remains highly fragmented.

Industry competition is increasingly driven by supply chain capability, production standardisation, quality control, and distribution efficiency, as regulatory standards and procurement systems become more structured.

Neautus reported revenue of about $1.32b (RMB1.15b) in 2023, rising to around $1.54b (RMB1.34b) in 2025.

Net profit in 2025 reached about $121.9m (RMB106m), whilst adjusted net profit—excluding listing-related expenses—stood at about $146.1m (RMB127m).

Operating cash flow increased from about $86.1m (RMB74.85m) in 2023 to around $177.1m (RMB154m) in 2025.

Accounts receivable grew in line with revenue and remained mainly short term, whilst payables remained stable. The gearing ratio fell to 47% in 2025.

Raw material price volatility affected cost pressures across the sector, with Neautus attributing its performance to scale and cost control within its operating model.

Founder Jiang Yun has worked in the pharmaceutical sector and participated in GMP-based production systems for TCM decoction pieces.

He served on the 10th Chinese Pharmacopoeia Committee and contributed to DNA-based identification systems for Chinese medicinal materials included in the Chinese Pharmacopoeia.

Jiang Ercheng, who studied biochemistry at the University of California, Los Angeles, and Hong Kong Baptist University, is involved in research and strategy.

The listing forms part of wider industry activity as companies in the sector respond to regulatory standardisation and capital market access.

(RMB1 = HK$1.15)