Group issued a statement on the Hong Kong Stock Exchange on Friday (June 27) saying that it is expected to be listed on the Singapore Exchange around July 15.

"This region has a population of nearly 700 million, which is due to the rapid economic growth, the rise of the middle class, the aging of the population and the increasing burden of non-communicable diseases, leading to strong growth in medical demand."

According to China's "Daily Economic News" report in March, Kangzhe Pharmaceutical's net profit in fiscal year 2024 fell 32.3% to 1.6 billion yuan (S$285 million), and its revenue fell 6.8% to 7.5 billion yuan, but the revenue decline narrowed compared with 2023. Kangzhe Pharmaceutical said in its financial report that the main reason for the decline in performance was that the three original drugs did not win the bid for China Produce, resulting in a year-on-year decrease of 28.8%.

Kangzhe Pharmaceutical is a pharmaceutical company focusing on innovative drugs and focusing on the Chinese market. The company has been listed on the Hong Kong Stock Exchange since 2010.

Group expressed its hope to replicate the success achieved in the Chinese pharmaceutical industry in Southeast Asia with its mature operation experience in the Chinese market.

China Medical System, which is listed in Hong Kong, plans to list on the Singapore Exchange main board in July this year.

The national procurement policy refers to the behavior of the State Medical Insurance Administration and other government departments in China to organize medical institutions across the country to conduct unified procurement of specific drugs through public bidding and other means. The purpose is to reduce drug prices, improve procurement efficiency, and ensure the quality of drugs and the stability of supply through large-scale procurement.

According to the statement, the proposed second listing does not involve the issuance of new shares. The company also noted that Singapore is the regional headquarters for its Southeast Asia and the Middle East operations.

Kangzhe Pharmaceutical said that the second listing will help deepen its layout in Southeast Asia and "exposure to Singapore's new and mature investor base."