One of the oldest pharmaceutical brands in China has applied to list its subsidiary Tong Ren Tang Medical Care, which is building an integrated medical system.
<h4>Key Points:</h4>
<ul>
<li>Leading private traditional Chinese medicine service provider Beijing Tong Ren Tang Medical Care has launched an IPO, aiming to raise up to HKD 898 million.</li>
<li>The company plans to acquire and establish 10 medical institutions by 2029 to promote the expansion of its medical network.</li>
</ul>
Li Shida
China's aging population is driving demand for services such as chronic disease management, long-term health management, and rehabilitation treatment, creating significant opportunities for traditional Chinese medicine practitioners. With a history of over 300 years, one of the oldest pharmaceutical brands in China, Tong Ren Tang, is expected to precisely meet such demands due to its brand appeal—stemming not only from consumer nostalgia but also from its deep-rooted traditional Chinese medicine heritage.
Beijing Tong Ren Tang Medical Care Investment Co., Ltd. (2667.HK) is attracting investors to participate in its Hong Kong stock listing plan based on consumer demand for traditional Chinese medicine. The company launched its IPO on March 20, planning to issue 108 million shares, with a price range of HKD 7.30 to 8.30 per share, aiming for a net fundraising of HKD 844 million (USD 108 million) based on the midpoint price. The stock is scheduled to be listed on March 30. In its transformation from a &#34;century-old brand&#34; to an &#34;integrated medical service provider,&#34; the company targets the national health market and seeks to uncover significant opportunities from long-term follow-up patients (typically including the elderly and chronic disease patients).
Unlike other enterprises within the Tong Ren Tang system, Tong Ren Tang Medical Care's core strategy is to provide comprehensive traditional Chinese medicine services that encompass health management and product sales. The company offers these services through a network of 12 self-operated medical institutions, 12 entrusted medical institutions, and 1 internet hospital.
Tong Ren Tang stated that by integrating diagnosis and treatment, rehabilitation, referral, and health management into a single system, it has improved treatment efficiency and enhanced patient loyalty. In 2024, its online and offline outpatient visits are expected to reach nearly 3 million, holding approximately 1.7% market share in China's private traditional Chinese medicine hospital service market, ranking first in the industry. As of the end of September last year, its membership system had about 770,000 patients, reflecting a large-scale medical network.
<h4>Talent Development</h4>
Founded in 1644 during the Qing Dynasty, the long-standing brand recognition in the field of traditional Chinese medicine gives its affiliated institutions a natural trust advantage among many Chinese consumers. Compared to emerging medical institutions attempting to establish similar traditional Chinese medicine networks, the brand strength makes it easier for Tong Ren Tang Medical Care to attract patient and physician resources.
The core competitiveness of traditional Chinese medicine service providers lies in physician resources. Tong Ren Tang Medical Care strengthens its capabilities in this area through measures such as introducing senior traditional Chinese medicine experts, building specialty departments, and upgrading equipment. The company currently has over 2,700 practicing physicians, forming the cornerstone of its medical health service system. This is particularly important for long-term patients—who typically seek a fixed physician to develop treatment plans rather than just a one-time consultation.
<h4>Artificial Intelligence and Digital Transformation</h4>
Despite its historical reputation, TONG REN TANG is fully deploying artificial intelligence and digital tools on the production and user ends to embrace modern technology. On the production side, the company is collaborating with Yonyou Software, which has the BIP AIoT (Business Innovation, Intelligent Internet of Things) platform, to promote intelligent manufacturing of traditional Chinese medicine, aiming to enhance production efficiency, quality control, and supply chain collaboration capabilities.
On the consumer side, the company has partnered with smart product manufacturer Xiaomi to launch the AI-enabled &#34;TONG REN TANG Health Pavilion&#34; AI intelligent traditional Chinese medicine health service agent. This system provides personalized health advice through natural language interaction and integrates online medication purchasing services, extending traditional Chinese medicine knowledge into daily life scenarios.
<h4>Medical Network Expansion</h4>
In recent years, TONG REN TANG has rapidly expanded its facility network and resources through acquisitions. Typical cases include the acquisition of the Zhejiang time-honored traditional Chinese medicine brand Sanxi Tang (operating clinics and traditional Chinese medicine preparations) and Shanghai Chengzhitang, Shanghai Zhonghetang. These acquisitions have enabled the company to quickly establish and expand medical services in the Yangtze River Delta region while increasing its user base.
Financially, the company's business has steadily grown over the past three years, with revenue increasing from 911 million yuan in 2022 to 1.18 billion yuan in 2024. In the first nine months of last year, revenue was approximately 858 million yuan, higher than the 833 million yuan in the same period the previous year. During the same period, the gross profit margin increased by 1.1 percentage points year-on-year to 18.2%.
Traditional Chinese medicine services are the company's core source of income. In the first three quarters of 2025, this segment generated 723 million yuan, accounting for about 84% of total revenue. Such services mainly include outpatient diagnosis and treatment and related services, while management services and health product sales contribute supplementary income.
The expansion of the medical network requires continuous investment, which may be an important factor in its decision to go public in Hong Kong.
Recently, the growth rate of TONG REN TANG has stabilized, with revenue growth slowing from 26% in 2023 to about 3% in the first nine months of last year. The company's profit during the same period fell nearly 10% year-on-year to approximately 24 million yuan, mainly due to the high base effect from one-time asset disposal gains in the same period last year.
The company is seeking new expansion measures to regain growth momentum. It plans to acquire five medical institutions by the end of 2029 and simultaneously establish five new institutions (possibly through corporate partnerships) to further expand its business footprint.
On a macro level, the demand for traditional Chinese medicine services is generally maintaining a positive trend. The prospectus cites third-party data indicating that the market size was approximately 300 billion yuan in 2023 and is expected to expand to around 500 billion yuan by 2030, equivalent to an average annual growth of about 7%. Given the rapid increase in China's aging population and the rising awareness of chronic disease prevention and treatment, the demand for traditional Chinese medicine diagnosis and health management services is expected to continue growing.
TONG REN TANG is expected to fully capitalize on this demand dividend, especially during the expansion period by integrating acquired assets and enhancing operational efficiency through deepening AI applications. Of course, its well-known and highly influential brand advantage in China remains. This asset endowment, coupled with expansion measures, may attract investors seeking traditional industry targets to participate in the currently hot Hong Kong IPO market
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Tong Ren Tang Medical and Health has launched its IPO, planning to raise up to HKD 898 million, with the goal of acquiring and establishing 10 medical institutions by 2029. The company relies on its 300-year-old brand to provide integrated traditional Chinese medicine services, addressing the health management needs arising from China's aging population. The IPO was launched on March 20, with a proposed issuance of 108 million shares, priced between HKD 7.30 and 8.30, and is expected to be listed for trading on March 30

TRT launches IPO to provide medical and health services relying on its time-honored brand