Traditional medicine maker Neautus rises 72% in Hong Kong trading debut

Shares of Sichuan Neautus Traditional Chinese Medicine Co. Ltd. (2206.HK) jumped in their Hong Kong trading debut on Wednesday, as retail investors clamored to buy into China’s largest private producer of traditional Chinese medicine (TCM) decoction-ready products.

The stock opened at HK$51.30, nearly 28% above its IPO price of HK$40.20 when trading began. It continued to rise through the day and closed at HK$69, up 71.6%.

The company sold about 6.52 million shares, raising net proceeds of nearly HK$200 million ($25.5 million). The Hong Kong portion for local investor was more than 2,000 times oversubscribed, a level rarely seen for new TCM listings. The international offering was 1.25 times subscribed.

Neautus is one of China’s two largest TCM decoction-ready product makers and was the largest private producer by sales in 2025, offering over 770 types and 4,900 varieties of products. Its products are sold from a distribution network of more than 1,000 hospitals and medical institutions across China. The company was founded in 2001 in Chengdu, capital of Southwest China’s Sichuan province, and is headed by Chairman Jiang Yun and his son Jiang Ercheng. Following the listing, the elder Jiang holds about 28.4% of Neautus’ stock, while his son holds 16.3%.

Neautus’ revenue rose 13% in the first four months of 2026 to 432 million yuan ($64.7 million) from 383 million yuan a year earlier. Its profit rose 64% in the latest four-month period to 33.9 million yuan from 20.7 million yuan a year earlier.

The company plans to use about a third of its IPO proceeds to expand its production capacity and enhance its production system with digital and intelligent capabilities. Another 29% will go to sales and marketing activities, 11.4% will go to building its 2C business, and 10.2% will go to building overseas sales channels in Vietnam and Malaysia.

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