Hainan Haiyao Co.

What Hainan Haiyao Co. does

Hainan Haiyao Co., Ltd. (SZSE: 000566) is a Chinese state-owned pharmaceuticals group founded in 1965 and headquartered in Haikou, Hainan Province. Operating under the controlling shareholding of Xinxing Jihua Medical Holdings (a SASAC entity since March 2020), the company runs an integrated pharmaceutical platform spanning chemical drug manufacturing, traditional Chinese medicine, medical devices, hospital services, and medical informatics. Its core product portfolio includes the cephalosporin and carbapenem antibiotic families (Meropenem, Cefoxitin, Ceftriaxone, Aztreonam), the TCM gastrointestinal product Fengliao Changweikang Granules, the health supplement Hongbao Taihe Capsules, and an innovative drug pipeline led by Fluorofenidone (Class 1.1 anti-fibrotic, Phase III) and Piengabin (anti-epileptic, Phase IIb).

The company's technology stack centers on a fully integrated intermediates-to-API-to-formulations production chain, with disclosed daily capacity of 1.5 million amoxicillin capsules, 300,000 ceftriaxone and meropenem vials, and 320,000 Vitamin C vials, plus wholly-owned manufacturing subsidiaries Chongqing Tiandi Pharmaceutical, Jiangsu Pujian Pharmaceutical, and Guilin Haiyao Biotechnology. Its most distinctive proprietary technology is the Lishengte second-generation fully domestically produced artificial cochlear implant (LSP-20B 臻听), featuring independent IP on chip, electrode design, and an L-CIS encoding strategy optimized for Chinese tonal language; the product is priced at approximately one-third of foreign equivalents. The company also holds a 15.11% stake in China Antibiotics (HKEX: 03681), providing access to a monoclonal antibody pipeline (including SM03 for rheumatoid arthritis in Phase III), and operates a CAR-T cell therapy joint venture with Shanghai Youkadi.

The business model combines multi-channel pharmaceutical distribution through a national network of 20+ regional sales offices, pharmaceutical distributor intermediaries (Anhui Huayuan, Chongqing Pharmaceutical, Jiuzhoutong), government centralized procurement tenders, international exports to 6+ countries, and specialized channels including the Hunan Lianqiao TCM Trading Center and Logistics (117,000 m², the largest single-site TCM facility in China), the Egang Hospital in Hubei, and the Chongqing Yadeke medical information platforms deployed across five provinces. Customer segments span domestic hospitals and clinics, pharmaceutical distributors, international markets in Southeast Asia and Africa, hearing-impaired patients, TCM industry participants, and provincial health authorities.

Name

Hainan Haiyao Co.

Legal name

海南海药股份有限公司

Website

https://haiyao.com.cn

Company type

Public

Founded year

1965

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Hainan Haiyao Co. (SZSE: 000566) is a Chinese state-owned pharmaceutical group manufacturing antibiotics, TCM products, cochlear implants, and APIs across an integrated intermediates-to-formulations production chain, serving hospitals, distributors, and international markets under SASAC control.

Ownership category

akta.pro rank

Product category

Pharmaceutical Manufacturing

NAICS

Pharmaceutical Preparation Manufacturing (325412), Pharmaceutical and Medicine Manufacturing (3254), Medical Equipment and Supplies Manufacturing (3391), Drugs and Druggists' Sundries Merchant Wholesalers (424210), Drugs and Druggists' Sundries Merchant Wholesalers (42421), Biological Product (except Diagnostic) Manufacturing (325414), Medicinal and Botanical Manufacturing (325411)

SIC

Pharmaceutical Preparations (2834), Surgical & Medical Instruments & Apparatus (3841), Wholesale-Drugs, Proprietaries & Druggists' Sundries (5122), Medicinal Chemicals & Botanical Products (2833), Biological Products, (No Disgnostic Substances) (2836)

akta.pro primary industry

Compounding Ingredient & API Distributors (Pharma Supply) (HLAIAJAO)

akta.pro secondary industry

Specialty Pharmaceutical Distributors (HLAIAJAB)

Keywords

• Pharmaceutical manufacturing
• Antibiotics production
• Traditional Chinese medicine
• Cochlear implants
• API manufacturing

Headquarters

HQ city

Haikou

HQ country

China

HQ region

Asia

Offices7 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Personnel, Supply Chain, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Pharmaceutical Manufacturing and Sales: Core revenue stream from manufacturing and selling chemical pharmaceutical products including antibiotics (头孢西丁钠, 美罗培南, 头孢曲松钠), digestive products (枫蓼肠胃康颗粒/片), anti-tumor products (紫杉醇注射液), and other generic and innovative drugs. Products sold through domestic distribution networks, hospital tenders, and direct sales, with exports to international markets.
2. Traditional Chinese Medicine Materials and Processing: Via subsidiary 湖南廉桥药都医药, the company operates the Chinese Lianqiao Traditional Chinese Medicine Trading Center (2.4万m²) and the largest single-site TCM warehousing logistics center in China (11.7万m²). Revenue from TCM processing, Chinese medicinal herb trading, and warehousing services. Planning 580 ordinary TCM decoction pieces and 13 toxic TCM decoction piece varieties, with the largest toxic TCM production workshop in Hunan.
3. Medical Devices — Artificial Cochlear Implants: Via subsidiary 上海力声特医学科技, the company manufactures and sells domestically produced artificial cochlear implants and speech processors. Products target hearing-impaired patients and are sold to hospitals and through rehabilitation assistance programs. Competitive pricing at ~1/3 of foreign alternatives makes treatment accessible to more patients.
4. Medical Services (Hospital Operations): Via subsidiary 鄂州康禾医院管理 (operating 鄂钢医院), the company runs a general hospital in Ezhou, Hubei Province. The hospital was designated as one of the first COVID-19 designated treatment hospitals, demonstrating its operational scale in healthcare services.
5. Biopharmaceutical Investment — China Antibiotics: The company holds 15.11% stake in China Antibiotics (中国抗体, HKEX: 03681), a publicly listed biotech company focused on monoclonal antibody drugs. This represents both a strategic investment and a channel for biotech revenue through its drug pipeline including SM03 for rheumatoid arthritis.
6. API and Intermediates: Production and sale of active pharmaceutical ingredients (APIs) and intermediates including carbapenem APIs, cephalosporin APIs. Full industrial chain advantage from intermediates to API to formulations. API sales to domestic and international pharmaceutical manufacturers.

Pricing tiers

Go-to-market motion2 records

Distribution channels6 records

Marketing channels6 records

Core offering

Hainan Haiyao Co. manufactures and sells pharmaceutical products across multiple therapeutic categories including antibiotics (cefotiam, meropenem, ceftriaxone), digestive health products (Fengliao Changweikang), anti-tumor drugs (paclitaxel), and traditional Chinese medicine. The company operates a full pharmaceutical industrial chain from intermediates to APIs to formulations. It also manufactures domestically produced artificial cochlear implants via subsidiary Shanghai Lishengte, operates a general hospital (Egang Hospital), and runs a major TCM trading and warehousing platform in Hunan.

Product overview

Hainan Haiyao Co. operates a diversified pharmaceutical portfolio organized into product categories including large health products, digestive health, anti-infectives, respiratory, anti-tumor, chronic disease, vitamins, active pharmaceutical ingredients (API), traditional Chinese medicine decoctions, medical devices, and medical services. Key core products include Fengliao Changweikang Granules (traditional Chinese medicine for gastrointestinal disorders), various antibiotic injections (Meropenem, Cefoxitin, Ceftriaxone, Aztreonam), and the domestically-produced LSP-20B artificial cochlear implant. The company also has innovative drugs in pipeline including Fluorofenidone capsules (anti-fibrosis, Phase III) and Tebipenem Pivoxil Granules (oral carbapenem). Subsidiary products include Hongbao Taihe Capsules health supplement. The company has full industry chain capability from API to formulation.

Differentiator

Problem solved

Functional benefit

Brands

• 枫蓼肠胃康: Traditional Chinese medicine for gastrointestinal health, including granules, tablets, and capsules - a key product of the company
• 红宝牌太和胶囊
• 特素
• 海西丁
• 常为康

Products and services

• Fengliao Changweikang Granules (枫蓼肠胃康颗粒) Traditional Chinese medicine product for gastrointestinal disorders made from Polygonum chinense and Mussaenda pubescens, sold domestically and exported to Southeast Asia. Targets patients with digestive issues including pediatric acute diarrhea.
• Hongbao Taihe Capsules (红宝牌太和胶囊) Health supplement product developed jointly with the Chinese Academy of Military Medical Sciences for immune support. Originally for military use to enhance troops' physical stamina in field conditions. Sold commercially domestically and exported to Africa.
• LSP-20B Artificial Cochlear Speech Processor (人工耳蜗语音处理器) Second-generation fully domestically produced cochlear implant with L-CIS speech encoding strategy optimized for Chinese tonal language. Features micro-curved electrode design and complete independent IP. Priced at approximately one-third of foreign equivalents, targeting hearing-impaired patients in China.
• Meropenem for Injection (注射用美罗培南) Carbapenem antibiotic product available in 0.25g and 0.5g specifications, the company's first carbapenem antibiotic. API produced in-house. Used for treatment of severe bacterial infections in hospitals.
• Cefoxitin Sodium for Injection (注射用头孢西丁钠) Cephalosporin antibiotic product recognized as Hainan Province high-tech product. One of the company's key anti-infective products sold through domestic distribution networks and government procurement.
• Fluorofenidone Capsules (氟非尼酮胶囊) Anti-fibrosis 1.1 class new drug developed with Central South University for treatment of liver fibrosis from viral hepatitis and alcoholic liver disease. Listed as a National Major New Drug Creation science and technology project with PCT patents granted internationally.
• Tebipenem Pivoxil Granules (替比培南酯颗粒) Novel oral carbapenem broad-spectrum antibiotic with stable properties against most beta-lactamases. The company is among few in China holding clinical approval for this product.
• Aztreonam for Injection (注射用氨曲南) Monobactam antibiotic recognized as 2018 Hainan Province high-tech product. Key antibiotic product of the company used in hospital settings.
• Vitamin C for Injection (注射用维生素C) First ordinary powder injection product of the company filling a product gap. Recognized as 2018 Hainan Province high-tech product. Vitamin product used in clinical nutrition support.
• Active Pharmaceutical Ingredients (APIs) and Intermediates Production and sale of active pharmaceutical ingredients (APIs) and intermediates including carbapenem APIs and cephalosporin APIs. Full industrial chain advantage from intermediates to API to formulations. API sales to domestic and international pharmaceutical manufacturers.

Named customers9 records

Segments6 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability2 records

Feature8 records

Partnerships

14 partnerships are on record, tiered minor and core.

• 中国国信信息总公司 (China National Electronics Information Corp.)minorStrategic or Co-development Partner · 13 September 2018Framework cooperation agreement signed in September 2018 for comprehensive cooperation in healthcare big health, TCM cultivation, processing, and pharmaceutical sales. Both parties bring complementary advantages in pharmaceutical manufacturing and informatization to build integrated healthcare solutions.
• 中陕核工业集团公司 (China Shaanxi Nuclear Industry Group)minorStrategic or Co-development Partner · 13 July 2018Strategic cooperation signed in July 2018 between Hainan Haiyao and China Shaanxi Nuclear Industry Group, focused on healthcare industry collaboration.
• 韩国SK集团电讯株式会社 (SK Telecom, Korea)coreStrategic or Co-development Partner · 5 July 2017In July 2017, Hainan Haiyao signed a strategic cooperation memorandum with SK Telecom (Korea), Seoul National University Bundang Hospital, and ezCaretech (Korea) for medical information solutions. The partnership focuses on medical informatization, internet healthcare, and healthcare service expansion. SK Telecom brings its Hospital Information System (HIS) capabilities while the partnership aims to leverage China's Boao乐城 medical tourism先行区. This marked Hainan Haiyao's first international strategic cooperation under its 'going out, bringing in' strategy.
• 韩国ezCaretech株式会社 (ezCaretech, Korea)coreStrategic or Co-development Partner · 7 June 2017Korean digital hospital specialist (founded 2001) partnering with Hainan Haiyao, SK Telecom, and Seoul National University Bundang Hospital in the medical information solutions strategic cooperation. Specializes in building IT-integrated digital hospitals. Part of the joint initiative to establish medical information and telemedicine platforms in China.
• 韩国首尔大学盆唐医院 (Seoul National University Bundang Hospital, Korea)coreStrategic or Co-development Partner · 7 June 2017Renowned Korean medical institution with excellent medical team and advanced digital medical systems. Partnered with Hainan Haiyao, SK Telecom, and ezCaretech to bring Korean medical expertise and telemedicine technology to China through the Boao乐城 medical tourism先行区.
• 新兴凌云医药化工有限公司 (Xinxing Lingyun Pharmaceutical Chemical Co., Ltd.)minorStrategic or Co-development Partner · 1 March 2017Supplied products to Sinovac Biotech (北京科兴中维) for COVID-19 vaccine production research from May 2020. The cooperation was recognized for supporting national pandemic response efforts. Product provided for research and development of the inactivated COVID-19 vaccine (Vero cell).
• 上海优卡迪生物医药科技有限公司 (Shanghai Youkadi Biotech)coreStrategic or Co-development Partner · 1 January 2017Joint venture (海优细胞免疫治疗研究中心) established with Youkadi for CAR-T cell therapy development. The joint venture operates at the Boao乐城 medical tourism先行区 and collaborated to invite Prof. Stephen Grupp (UPenn) to visit the zone in October 2018.
• 联邦制药国际控股有限公司 (Neptunus Pharmaceutical / Lupin)minorChannel Partner/ Reseller/ Distributor · 1 January 2017In April 2014, Lupin (known as联邦制药) visited Hainan Haiyao to discuss API supply cooperation. Both parties expressed willingness to deepen strategic cooperation and leverage their respective advantages. The visit followed an existing API supply relationship.
• 中国军事科学院 (People's Liberation Army Academy of Military Sciences)coreStrategic or Co-development Partner · 1 January 2017Co-developed红宝® (Hongbao) health product with the PLA Academy of Military Sciences. Originally developed for military use to enhance soldiers' physical stamina and immune function in field conditions. The product was first exported to African markets for immune support among populations with high HIV prevalence.
• 亚德科技股份有限公司 (Chongqing Yadeke Technology Co., Ltd.)coreStrategic or Co-development Partner · 1 January 2017Subsidiary operating medical big data and internet healthcare businesses. Operates the 重庆市全民健康信息平台 serving Chongqing, Guizhou, Sichuan, Guangdong, Shandong. Listed as a 全国疫情防控重点保障企业 during COVID-19. Operates internet hospitals and health management platforms.
• 中南大学湘雅医学院 (Xiangya Medical College, Central South University)coreStrategic or Co-development Partner · 4 June 2013Scholarship partnership since 2013 with annual awards of RMB 150,000 (30 students × RMB 5,000 each). Also provides internship and employment opportunities for graduates. Collaboration in teaching, research, and practice. Hainan Haiyao provides scholarships to support medical talent development.
• 广西中医药大学 (Guangxi University of Chinese Medicine)coreStrategic or Co-development Partner · 15 March 2012Established since 2005, providing talent recruitment, student internships, and annual scholarship program. Hainan Haiyao has awarded RMB 100,000/year in stipends to approximately 40-50 outstanding students per year for 6 consecutive years (2012-2017). Also cooperates on teaching, research, and practical training. The university has an MoU with the company and designated Hainan Haiyao as a practical teaching base.
• 中南大学 (Central South University)coreStrategic or Co-development Partner · 1 January 2010Co-developed the 1.1类 innovative anti-fibrotic drug氟非尼酮 with Central South University over more than 10 years. The project is classified as a National Major New Drug Creation (国家重大新药创制) science and technology major special project, receiving multiple provincial, ministerial, and national-level research grants. Multiple patents including PCT patents granted internationally.
• 海南大学 (Hainan University)minorStrategic or Co-development Partner · 12 December 2006School-enterprise cooperation signed in December 2006 for talent recruitment in business administration, marketing, and administrative management. A preparatory talent pool established for future recruitment. Company VP Wang Gang was appointed as adjunct associate professor at the university.

Scale indicators10 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Shanghai Pharmaceuticals Holding: Leading Chinese pharmaceutical manufacturer and distributor with integrated pharma manufacturing and distribution operations. Comparable to Haiyao's combined manufacturing-API-distribution model and SOE-adjacent positioning.
• Jiangsu Hengrui Medicine: Leading Chinese innovative pharmaceutical company with strong R&D pipeline including oncology, anesthesia, and contrast media. Comparable to Haiyao's push into Class 1.1 innovative drugs (Fluorofenidone) and specialty pharmaceutical manufacturing.
• Jointown Pharmaceutical Group: Major Chinese pharmaceutical distributor with nationwide logistics network. Comparable to Haiyao's 20+ regional sales office distribution model and TCM trading/logistics operations via Hunan Lianqiao Yaodu subsidiary.
• CSPC Pharmaceutical Group: Major Chinese pharmaceutical manufacturer with diversified portfolio across antibiotics, cardiovascular, and oncology products. Comparable to Haiyao in being a vertically integrated Chinese pharma company with strong R&D pipeline and national sales network.
• China Traditional Chinese Medicine Holdings: Largest Chinese TCM manufacturer with focus on TCM decoction pieces and Chinese medicine formulations. Comparable to Haiyao's TCM strategy via Hunan Lianqiao Yaodu and Fengliao Changweikang TCM products.
• Guangzhou Baiyunshan Pharmaceutical: Chinese pharmaceutical company combining traditional Chinese medicine and chemical drug businesses. Comparable to Haiyao's TCM+chemical pharma portfolio, including digestive system TCM products and generic pharmaceuticals.

Broad incumbents

• Fosun Pharma: Diversified Chinese healthcare conglomerate spanning pharmaceutical manufacturing, medical devices, diagnostics, and hospital operations. Directly comparable to Haiyao's diversified business model across pharma, devices (cochlear implants), and hospital services.
• Cochlear Limited: Global leader in cochlear implant technology (Australian-listed). Directly comparable to Haiyao's Lishengte cochlear implant subsidiary as the dominant foreign competitor Haiyao is positioning against with 1/3 pricing strategy.
• Sinopharm Group: China's largest pharmaceutical distributor and SOE-controlled healthcare group. Comparable to Haiyao's distribution channels and SOE backing, though at vastly larger scale covering drugs, devices, and TCM nationwide.
• China Resources Pharmaceutical Group: Large SOE-affiliated Chinese pharmaceutical conglomerate under China Resources. Operates pharmaceutical manufacturing, distribution, and retail pharmacy businesses. Comparable to Haiyao's diversified pharma + SOE-backed structure, but at significantly larger scale.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/hainan-haiyao-co-ltd

Compliance8 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries8 records

Funding overview

Funding rounds

Investors

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M&A

Investments1 record

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Frequently asked questions about Hainan Haiyao Co.