Neautus launches Hong Kong IPO at up to HK$3.3 billion valuation

Sichuan Neautus Traditional Chinese Medicine Co. Ltd. (2206.HK) launched its Hong Kong IPO on Oct. 30, targeting a valuation of up to HK$3.3 billion ($423 million), as it seeks to attract investors with its status as China’s leading private producer of traditional Chinese medicine (TCM) decoction-ready products.

Led by founder and Chairman Jiang Yun and his son Jiang Ercheng, Neautus plans to offer about 10% of its enlarged share capital at HK$40.20 to HK$50.55 per share, according to its latest filing. Trading is expected to begin on Nov. 11.

Founded in 2001 in Chengdu, capital of Southwest China’s Sichuan province, Neautus is among China’s two largest TCM decoction-ready product makers by sales in 2025, and is the country’s largest private producer. The company offers over 770 types and 4,900 varieties of products. Its distribution network covers more than 1,000 hospitals and medical institutions across China.

Its market share stood at approximately 0.4%, highlighting opportunities for consolidation in a fragmented industry where the top five players collectively accounted for just 2.7% of the market.

China’s TCM product market was worth 426.6 billion yuan ($60 billion) in 2025 and is projected to reach 469.2 billion yuan by 2035, supported by growing health awareness, favorable policies and increasing adoption of standardized production processes.

Neautus reported revenue growth of 6.8% to 1.33 billion yuan in 2025, up from 1.25 billion yuan in 2024. The growth accelerated to about 13% in the first four months of 2026, with revenue reaching 432 million yuan during the period. Its profit rose about 19% to 106 million yuan in 2025 and jumped a further 64% year-on-year to 33.9 million yuan in the first four months of 2026.

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