Established in October 2001, Yuanhua Biotech is a high-tech enterprise specializing in the R&D, cultivation, production, and sales of biotechnology products. It is recognized as one of Henan Province’s Top 50 High-Tech Growth Enterprises, a Provincial Agricultural Industrialization Leader, a Provincial Innovative Enterprise, a Provincial Enterprise Technology Center, a Henan Civilized and Credible Enterprise, and a Key Enterprise in Xuchang’s Top 100 List. In 2006, Yuanhua Biotech became the first Henan-based company to list on the UK stock market.
Yuanhua Biotech is dedicated to advancing life and health. With independent cultivation bases, it harnesses nature’s finest resources. From selecting premium raw materials to refining formulas and production processes, every step is meticulously optimized to ensure unparalleled quality.
Guided by the principles of “Vision through Reflection, Virtue through Action” and “Upholding Virtue, Relentless Self-Improvement”, Yuanhua Biotech remains true to its初心 (original aspiration), driving scientific innovation to revive the glory of TCM. We strive to make health a year-round companion, co-create a high-quality life, and contribute to the grand vision of “Healthy China”.
The company maintains close partnerships with renowned domestic and international universities and research institutes. Supported by a team of leading experts in biotechnology and functional foods, Yuanhua ensures robust scientific backing for its high-tech bio-products.
Reflecting on the past, we are grateful for your partnership. Moving forward, we eagerly anticipate joining hands with you to co-create a brighter tomorrow!
Dahe Daily: Yuanhua Bio knocks on the UK stock market
Release time：
2006-09-26
Source: Dahe Daily
With quiet efficiency, Xuchang Yuanhua Biotechnology Co., Ltd. (hereinafter referred to as Yuanhua Bio), and its related holding company, China Bio Food Co., Ltd. (hereinafter referred to as China Bio), have begun to tap into the UK stock market.
On the afternoon of September 7th, in London's OFEX market (Off-Exchange, an over-the-counter market for unlisted companies); stock code: CBFO. The company's original shares totaled 7.14 million, with a listing price of £1.75 per share, a market capitalization of approximately RMB 200 million, and financing of approximately RMB 16 million.
According to the plan, after a one-year cultivation period, it is expected to be listed on the London Stock Exchange's main board, AIM (Alternative Investment Market), opening the door to significant wealth.
Entering the Foggy City
From Xuchang to London, "They (the British side) valued our growth potential, looking at the project, the future, and the growth. With the fund's initial cultivation, it will quickly develop." It is understood that China Bio was jointly established by the London Asia Fund (LAC) and Xuchang Yuanhua Biotechnology Co., Ltd., with a registered capital of £10 million. The London Asia Fund provided all the capital, holding a 37% stake, while Xuchang Yuanhua Biotechnology Co., Ltd. contributed intangible assets such as trademarks, patents, and sales networks, holding a 63% stake. In June of this year, China Bio established Henan Yuanhua Biotechnology Co., Ltd. in Xuchang as a wholly-owned subsidiary.
This operational approach paved the way for China Bio to enter the British securities market.
The reporter learned that the OFEX market was established on October 2, 1995, and is controlled and managed by the London Asia Fund. Its purpose is to create a market for companies that have not been listed on the London Stock Exchange's main board or AIM, allowing them to sell their shares and raise capital.
Compared to the London Stock Exchange's main board or AIM, OFEX has a lower market entry threshold, "providing equity financing services for small and medium-sized high-growth enterprises." Xuchang Yuanhua Bio Co., Ltd. was founded in 2003 with an initial investment of RMB 1 million. Now, its assets have expanded to RMB 60 million, demonstrating rapid growth. The company is one of the 50 high-growth key planned high-tech industries in Henan Province, mainly engaged in the extraction and processing of Chinese herbal medicines, soybean protein, deodorized allicin oil, etc., with most of its products exported.
Last year, Xuchang Yuanhua Bio was "targeted" by them. "After several rigorous investigations, both sides quickly reached a cooperation consensus and entered the listing process." "A major reason we were chosen is that countries like the UK, the US, and Japan all have plant legislation, and our high-purity alpha-linolenic acid is an essential food additive, and Henan is a major raw material supply base."
The "Truth" Behind Private Equity
The London Asia Fund is a private equity fund with a 10-year history. Before 2004, the institution focused on the US and Malaysia. However, after that, a significant shift occurred, and it began to enter China on a large scale, "focusing on providing direct investment, financing, and other financial services to small and medium-sized enterprises in Greater China and other Asian regions."
No one can ignore the presence of this type of fund in China, especially for small and medium-sized enterprises with good growth potential and suffering from "capital hunger." Xuchang Yuanhua Bio is naturally among them. The reporter learned that during its rapid development period before listing, the company experienced significant funding constraints due to continuous project development, equipment purchases, and research. However, after listing, not only did funding from the London Asia Fund and the stock market gradually arrive, but local banking institutions in Xuchang also flocked to the company.
Xuchang Yuanhua Bio's path choice has precedents in Xuchang. On March 9 this year, Henan Zhongpin Food Industry Co., Ltd. announced that it had successfully raised capital in the United States.
Xuchang Yuanhua Bio was once one of the designated companies in Henan to enter the listing guidance period. During the long waiting period, many domestic and foreign private equity funds and other investment banking institutions approached the company, and the company also considered and compared various capital markets.
“Yuanhua Bio's choice of this path is likely both proactive and a necessity—in reality, many excellent small and medium-sized enterprises in Henan and even the whole country face this listing dilemma—and private equity is sometimes a shortcut,” said a professional from Minsheng Securities to the reporter.
The underdeveloped venture capital or private equity investment and the weak second board and growth enterprise board capital markets in China are gradually amplifying a certain awkwardness for Chinese small and medium-sized enterprises.
Favor for Henan's Agricultural Leaders?
Shuanghui, Zhongpin, Hubin Juice, Sinian, Yuanhua Bio… For some time, Henan's agricultural and sideline product deep-processing enterprises have frequently become targets of foreign mergers and acquisitions or investments. Moreover, according to various sources, many food companies such as Sanquan, Huaying Poultry, and Baixiang Group have also set specific schedules for overseas listings.
“Food or agricultural and sideline product deep processing is a dominant industry in Henan, and the prominent problem facing enterprises in this industry is how to integrate with the international market, covering financing, technology, standards, management, market, and even concepts,” said a Tong-surname staff member from the Xuchang Municipal Committee to the reporter.
Xuchang Yuanhua Bio has, to some extent, achieved its own "internationalization." It is understood that the company's high-purity alpha-linolenic acid, deodorized allicin oil, and soybean and corn protein products are all targeted at developed Western international markets.
“The industrialization, marketization, and standardization of agriculture is a major issue. For our company, listing in the UK to raise capital does not only bring funds; the transformation of concepts and operating methods, the improvement and enhancement of the management system and team building, and the acquisition of international market information and broadening of horizons are even more important.”
The reporter learned that the London Asia Fund, having tasted the "sweetness" of supporting Yuanhua Bio's listing in the UK, has now moved its Henan office to Xuchang. As its next "decapitation" action, it has set its sights on many agricultural industrialization projects, including Xinyang tea.
Xuchang's "Rapid Advance"
Taking the path of overseas private equity or IPO-style listing, Yuanhua Bio is not the first, nor the last in Xuchang. On September 18, the reporter learned from the Xuchang Municipal Government that Xuchang Wanli Transportation has just signed a sponsorship agreement with a well-known Singaporean investment bank, planning to complete its overseas listing within 12 months; Xuchang Ruihe Tai Zhenfa Co., Ltd. has reached an agreement with relevant institutions to introduce private equity.
In line with its push into overseas capital markets, Xuchang City has also "gone all out" in the domestic capital market: Sanyuan Electric has prepared to achieve a domestic main board IPO before the end of next year, and 10 enterprises including Xuchang Elevator, Luo Tuo Shoes, and Xuchang Drive Shaft have already been identified by Henan Province as prospective listed companies. Xujie Electric, Rui Bei Ka, and Huanghe Whirlwind, having completed shareholding reform first in the province, have all started refinancing work.
"The emergence of capital dark horses such as Yuanhua Biology and Zhongpin in Xuchang is not accidental." Zhang Ligong, vice president of the Henan Provincial Private Economy Society, told reporters, "The private economy here is developed, with distinct advantages in characteristic industries, and many enterprises are quite large. How to make up for the 'shortcomings' in capital development has become a collective consciousness among them."
But this is only one aspect. The government's efforts in optimizing the business environment and guiding the concept of capital operation have enabled local enterprises to "compete to utilize international markets for financing." Data shows that, as of now, the total number of listed companies in Xuchang City ranks third in the province.
"Capital is king." In Xuchang, the true meaning of this seems to be widely understood.
On the morning of February 27, 2025, Hu Quan, former Party Secretary of Pingdingshan Municipal Committee and Party Secretary of the Standing Committee of Zhengzhou Municipal People's Congress, led a group of leaders from Zhengzhou's Erqi District to Yuanhua Bio Company, embarking on a significant exploration journey into the great health industry. The aim was to promote in-depth exchanges between the government and enterprises, and to plan the development of the regional great health industry.
January 15, 2025. Tunnan Community, in collaboration with the Development Zone Civilization Office, held the 56th Collective Assistant Public Welfare Activity for Filial Piety and Respect for the Elderly, aiming to promote the traditional Chinese virtues of respecting the elderly and loving the young.
On January 14, 2025, a special group of guests arrived at Xuchang City Social Welfare Institute. Representatives from Xuchang Yuanhua Biotechnology Co., Ltd. donated supplies worth 20,000 yuan, bringing warmth and care to the children.
Mr. Zhang Jianguo, Chairman of Yuanhua Group, was invited to attend the 17th National Health Association for Retired Cadres, grandly held at the State Guesthouse No. 2 (the Second State Guesthouse of the State Council) in Beijing from January 4th to 5th, 2025.
On the special day of January 5, 2025, Yuanhua Group, upholding its love and social responsibility, donated Quan Yi De Calcium Aspartate to the Guangdong Provincial Federation of the Disabled. This act of love is like the warm sun in winter, injecting warmth and strength into the cause of disability welfare.
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