Changes in Hong Kong stocks | Leading Chinese herbal medicine company Xinhehua (02206) rose more than 30% the day after listing to a record high. The profit growth rate in the first four months of this year far exceeded the revenue growth rate

The Zhitong Finance App learned that the new lotus (02206) closed up 71.64% yesterday and continued to rise this morning. The intraday high of HK$94.1 hit a record high of HK$94.1, up more than 1.3 times the offering price; as of press release, it had risen 30.1% to HK$89.8, with a turnover of HK$24.21 million.

According to news, New Lotus is the core supplier of large-scale Chinese medicine tablets in China. It has two major products, common Chinese medicine tablets and toxic tablets, totaling more than 770 types and more than 4,900 products, and has more than 1,000 domestic customers such as hospitals, medical institutions, and large pharmacy chains. According to the sales revenue of Chinese herbal medicine products in 2025, the company ranked 2nd in the industry nationwide. It is worth mentioning that previously during the public sale phase, the new lotus was oversubscribed by 2190.99 times.

On the financial side, the company's revenue showed a steady upward trend. From 2023 to 2025, the company's revenue was 1,146 billion yuan, 1,249 million yuan and 1,335 billion yuan. Revenue for the first four months of this year was 432 million yuan, up 12.9% year on year; net profit was 33.9 million yuan, up 63.8% year on year; gross margin was restored to 21.8% from 17.1% in 2024. The profit growth rate far exceeds the revenue growth rate. The core is due to the decline in the cost of core raw materials such as Huanglian, Chuan Beimu, and French Banxia, as well as the scale effect brought about by collection volume.