Tong Ren Tang Healthcare expects to price HK listing by July 3

Tong Ren Tang Healthcare, a subsidiary of the historic Chinese traditional medicine (TCM) company, is expected to price its Hong Kong IPO by July 3, 2026. The company, which operates a network of hospitals, clinics, and online medical services, has been expanding aggressively through mergers and acquisitions (M&A) in recent years. Its revenue nearly doubled from 470 million yuan in 2021 to 890 million yuan in 2023, with an average annual growth rate of 38%.

The company’s strategy has been heavily reliant on M&A, with notable acquisitions including San Xi Tang and several regional hospitals. These deals have significantly boosted its revenue and expanded its footprint in the TCM healthcare sector. However, the rapid acquisition pace has also led to a substantial increase in goodwill, which 27.2% of net assets as of 2023. This raises potential risks related to future goodwill impairment charges.

Tong Ren Tang Healthcare plans to use a portion of the IPO proceeds to repay outstanding bank loans, which total approximately 130 million yuan. The company aims to continue its M&A-driven growth strategy, with a target of acquiring five hospitals by the end of 2028. The IPO is seen as a strategic move to further strengthen its capital base and support its expansion ambitions.