Jul 9, 2024

Fangzhou’s Shares Plummet 45% on Hong Kong Stock Exchange Debut Fangzhou generates more than 80% of its revenue from online prescription drug sales. Chinese online pharmacy Fangzhou Inc.’s shares plunged 45% on its debut on Hong Kong Stock Exchange Tuesday after raising HKD194.7 million ($24.9 million) in its IPO. The company issued 23.8 million shares at an IPO price of HKD8.18 a share. The shares closed at HKD4.53 Tuesday on the first day of trading. Founded in 2015, Fangzhou operates a hospital-to-home service platform, on which registered doctors and medical professionals provide consultations and prescriptions to patients. It also offers online retail pharmacy services. You've accessed an article available only to subscribers Get our weekly free Must-Read newsletter. RELATED Share this article DIGEST HUB Explore the story in 30 seconds Fangzhou Inc.’s shares dropped 45% on their Hong Kong debut after raising HKD194.7 million ($24.9 million) in its IPO, closing at HKD4.53. Despite its ranking as China's largest online chronic disease management platform with 4.4 million paid users, the company faces slowing revenue growth and significant annual losses. Fangzhou plans to allocate 67.4% of IPO proceeds for business expansion, including brand enhancement, talent acquisition, and supply chain improvements. AI generated, for reference only Who’s Who Fangzhou Inc. Fangzhou Inc. is a Chinese online pharmacy founded in 2015, offering hospital-to-home services and online retail pharmacy. It raised HKD194.7 million in its IPO but saw shares plunge 45% on its Hong Kong Stock Exchange debut. Despite being China's largest online chronic disease management platform with 4.4 million paid users, Fangzhou faces slowing revenue growth and substantial annual losses. The company plans to use IPO proceeds to expand its business, enhance brand awareness, and improve supply chain capabilities. Ali Health The article mentions Ali Health as one of Fangzhou's competitors. Ali Health is the health unit of the internet giant Alibaba, competing in the same market for online pharmacy services and chronic disease management. JD Health JD Health is a competitor of Fangzhou Inc. It is the health unit of internet giant JD.com and operates within the same online pharmacy and healthcare sector in China. JD Health competes by leveraging JD.com's extensive e-commerce platform and resources. Yiyaowang Yiyaowang is one of Fangzhou Inc.'s competitors in the online pharmacy market. It specializes in online pharmacy retail services, competing alongside the health units of major internet companies like Ali Health and JD Health, as well as other specialty retailers like YSB Inc. YSB Inc. YSB Inc. is mentioned in the article as one of Fangzhou Inc.'s competitors in the online pharmacy market. Specific details about YSB Inc. are not provided in the article, but it is listed alongside other notable competitors such as the health units of internet giants Ali Health and JD Health, as well as specialty online pharmacy retailer Yiyaowang. AI generated, for reference only What Happened When