Online Pharmacy Fangzhou Plummets 45% on Hong Kong Debut

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Fangzhou generates more than 80% of its revenue from online prescription drug sales.

Shares of Fangzhou Inc., a Chinese online medical service provider, shares plunged 45% on its debut on Hong Kong Stock Exchange Tuesday after raising HK$194.7 million ($24.9 million) in its IPO.

The company issued 23.8 million shares at an IPO price of HK$8.18 a share. The shares closed at HK$4.53 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.

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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.

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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.

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What Happened When

2015：: Fangzhou Inc. was founded.

2021-2023：: Fangzhou's operating income grew from 1.76 billion yuan to 2.434 billion yuan, with growth rates declining from 51.60% to 10.43%.

December 2022：: Fangzhou was valued at $1.4 billion after a D+ round of pre-IPO financing.

2023：: Fangzhou claimed to be China's largest online chronic disease management platform with 4.4 million paid users.

Tuesday, July 9, 2024：: Fangzhou's shares plunged 45% on its debut on the Hong Kong Stock Exchange, closing at HKD4.53 after raising HKD194.7 million ($24.9 million) in its IPO.

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