Company introduction

According to Euromonitor's report, in 2014, in terms of retail sales, the company was the leading manufacturer of throat lozengers in China, accounting for about 25.8% of the market share. According to Euromonitor's report, in terms of retail sales, the company's products are leaders in throat products in China, with a market share of about 18.6% in 2014. In 2010, the company's Golden Throat tablets won the first place in sales of Chinese over-the-counter (proprietary Chinese medicines (throat and mouth)) brands awarded by the China Over-the-Counter Drugs Association.

For the years ending 2012, 2013 and December 31, 2014, the company's total revenue was RMB587.8 million, RMB548.9 million and RMB606.8 million respectively. For the same period, the company's net profit was RMB102.8 million, RMB69.9 million and RMB121.7 million respectively. The decline in total revenue from 2012 to 2013 was mainly due to short-term adverse effects caused by the company's launch of an upgraded version of the Golden Throat with a longer validity period in August 2013; the increase from 2013 to 2014 mainly reflects an increase in the company's sales of upgraded Golden Throat tablets.

Intended use of proceeds

Assuming that no over-allotment rights have been exercised, the net proceeds from the sale of shares are estimated to be approximately HK$910.8 million based on the median offer price of HK$5.43 per share.