Leading Hair Loss Treatment Provider Mandy International Files for Listing on HKEX, Core Product Holds Over 70% Market Share

ZC Asia has learnt that, according to a disclosure by the Hong Kong Stock Exchange on 20 November, Mandy International has formally submitted its listing application to the exchange, with Huatai International acting as its sole sponsor. The listing entity is a subsidiary spun off from Sino Biopharmaceutical, specialising in skin health and weight management solutions.

Core products lead market share, with minoxidil sales showing sustained growth

Data from CIC(灼识咨询) indicates that Mandy's minoxidil-based hair loss treatment products have ranked first in both China's hair loss medication market and the minoxidil-specific segment for ten consecutive years since 2014. In 2024, its retail sales share reached approximately 57% and 71% respectively within these two sub-markets.

The company launched China's first 5% minoxidil solution in 2001, filling a market gap for hair loss treatments at the time. In 2024, the company further introduced its second-generation product—Mandi® 5% Minoxidil Foam—becoming the first and only domestically produced minoxidil foam approved in China. This formulation enhances therapeutic efficacy while reducing allergy risks through improved stability and targeted delivery.

To date, cumulative sales of the Mandi® minoxidil product series have surpassed 50 million bottles since market launch. The newly launched foam formulation sold over 2.5 million bottles in its first year of 2024, generating revenue exceeding RMB 300 million.

Financial data indicates that from 2022 to 2024, the company's revenue grew from RMB 982 million to RMB 1.455 billion, representing a compound annual growth rate (CAGR) of 21.7%. Revenue for the first half of 2025 reached RMB 743 million. Gross profit margins remained robust during this period, standing at 80.3%, 82.0%, and 82.7% respectively from 2022 to 2024, with the first half of 2025 recording 81.1%. Net profits for 2022, 2023, and 2024 were ¥202 million, ¥341 million, and ¥390 million respectively, while the first half of 2025 saw ¥174 million.

Broad Industry Potential Amid Intensifying Competition

China's hair loss patient population reached 339 million by 2024, with over 60% under 35 years old, propelling the minoxidil market from RMB 200 million in 2018 to RMB 2.8 billion in 2024.

However, market competition is intensifying rapidly. By November 2025, over 40 5% minoxidil products had gained domestic approval. While Mandy retains its leading position, it faces growing price competition from regional pharmaceutical firms and generic products, potentially pressuring future gross margins.

Balancing R&D Investment and Profitability

The company plans to allocate IPO proceeds towards enhancing R&D capabilities, advancing pipeline products, iterating digital operations, and supplementing working capital. As development projects progress into late-stage clinical trials, related expenditures will continue to rise. Semaglutide and Coratron cream are both in Phase III clinical trials, requiring substantial funding over the coming years, which may exert pressure on the company's profit performance.

Analysts note that while Mandy International has established brand and channel advantages in hair loss treatment, its business remains highly reliant on a single product line. The successful commercialisation of new products and their ability to replicate minoxidil's success remain uncertain. In high-potential segments such as weight management, the company will face intense competition from major pharmaceutical firms. Whether it can sustain high margins and growth will be a key focus for investors.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.