Hunan Er-Kang Pharmaceutical

What Hunan Er-Kang Pharmaceutical does

Hunan Er-Kang Pharmaceutical Co., Ltd. (湖南尔康制药股份有限公司, SZSE: 300267) is a China-based, vertically integrated pharmaceutical manufacturer founded in 2003 and headquartered in Liuyang National Economic and Technological Development Zone (Changsha National Bio-industry Base), Hunan Province. Listed on the Shenzhen Stock Exchange ChiNext board in September 2011, it is the first and only listed pharmaceutical excipient company in China. The company operates across three core product lines — pharmaceutical excipients (129 registration approvals including medicinal glycerin, ethanol, propylene glycol, sodium hydroxide, sucrose, and newer hydroxypropyl starch capsules and citrate series products), active pharmaceutical ingredients (73 varieties), and finished pharmaceutical products (282 approvals covering injections, tablets, and capsules). Its most differentiated asset is its position as the world's first industrialized producer of cassava (tapioca) starch plant capsules — a patented plant-based alternative to animal-derived gelatin capsules developed to address the 2012 industrial gelatin/chromium contamination scandal — with US FDA Drug Master File registration and IFANCA halal, KOF-K kosher, and Indonesian halal certifications.

The company serves primarily pharmaceutical manufacturers (B2B) and chain pharmacies (B2B2C) through 14 wholly-owned subsidiaries and one jointly-controlled subsidiary, supported by 15 domestic offices and distribution logistics centers spanning 30+ Chinese provinces and export markets in Southeast Asia, Europe, and the United States. Its international footprint includes a wholly-owned Cambodian subsidiary in Battambang Province (established 2013 under the Belt and Road initiative) serving as the upstream raw material base for cassava starch capsules, plus H.K. and African market development (China-Mozambique Entrepreneurs Forum participation, Tanzania Investment Authority engagement). Revenue mechanics are anchored on one-time product sales across excipients, APIs, and finished dosage forms, with direct online ordering via its corporate website and the Shi Er Yao Wang (十二药网) B2B2C e-commerce platform developed through subsidiary Changsha Kaina Network Technology (capitalized in 2012 with CNY 10M from Hunan Kaichuang Investment Management). In 2019–2020 the company expanded into traditional Chinese medicine through the 51% acquisition of Tibet Changdu Guangyu Limin Pharmaceutical, which holds 20 Tibetan medicine national drug approvals. The company holds the National Pharmaceutical Excipient Engineering Technology Research Center and has been recognized as a National Torch Plan Key High-Tech Enterprise.

Reported financials indicate a deteriorating trajectory: revenue declined materially from a 2021 peak through 2024, with operating losses in three of the five reported years and widening net losses in 2024 and 2025. Operating losses of CNY -12.4B (2024) and improving to CNY +2.2B (2025) mask persistent net losses of CNY -51.2B (2024) and CNY -54.3B (2025), signaling cost structure, impairment, or below-the-line pressures that warrant scrutiny beyond headline revenue trends.

Name

Hunan Er-Kang Pharmaceutical

Legal name

湖南尔康制药股份有限公司

Website

https://hnerkang.com

Company type

Public

Founded year

2003

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Hunan Er-Kang Pharmaceutical (SZSE: 300267) is China's first listed pharmaceutical excipient company, manufacturing 129 excipients, 73 APIs, and 282 finished drugs, and is the world's first industrialized producer of cassava starch plant capsules with FDA registration. It serves pharmaceutical manufacturers and chain pharmacies across 30+ Chinese provinces and exports to Southeast Asia, Europe, and the US.

Ownership category

akta.pro rank

Product category

Pharmaceutical Manufacturing

NAICS

Starch and Vegetable Fats and Oils Manufacturing (31122), Pharmaceutical Preparation Manufacturing (325412), Medicinal and Botanical Manufacturing (325411)

SIC

Medicinal Chemicals & Botanical Products (2833), Pharmaceutical Preparations (2834)

akta.pro primary industry

Starches & Grain Derivatives Manufacturing (cornstarch, maltodextrin, glucose solids) (AFAKABAG)

akta.pro secondary industries

Native Starches & Flours (Corn, Potato, Tapioca, Wheat, Rice) (AFAJABAB), Modified Food Starches (Acetylated, Crosslinked, Pregelatinized, Dextrins) (AFAJABAA), Other Starch Root & Tuber Farming (Yams, Taro, Arrowroot) (AFAGAEAJ)

Keywords

• Pharmaceutical excipients
• Active pharmaceutical ingredients
• Finished pharmaceutical products
• Plant starch capsules
• Pharmaceutical manufacturing

Headquarters

HQ city

Liuyang

HQ country

China

HQ region

Asia

Offices8 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

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

Revenue model

1. Pharmaceutical Excipients: Core revenue stream. The company has 129 pharmaceutical excipient registration approvals and produces major products including pharmaceutical glycerin, pharmaceutical ethanol, pharmaceutical propylene glycol, pharmaceutical sodium hydroxide, and pharmaceutical sucrose. Also includes new-type pharmaceutical excipients such as hydroxypropyl starch empty capsules and citrate series products.
2. Active Pharmaceutical Ingredients (原料药): Has 73 active pharmaceutical ingredient varieties including glycerin, dilute hydrochloric acid, diprophylline, sulbenicillin sodium, and calamine powder. Also includes 11 Xiangyikang raw material drug varieties.
3. Finished Pharmaceutical Products (成品药): Has 282 finished pharmaceutical product approval numbers including sulfadiazine sodium injection, aminophylline injection, aminocaproic acid injection, ethamsylate injection, vitamin B6 injection, tobramycin sulfate injection, compound sulfamethoxazole tablets, amcomp capsule, and compound licorice tablets.

Go-to-market motion2 records

Distribution channels4 records

Marketing channels5 records

Core offering

Hunan Er-Kang Pharmaceutical manufactures and sells pharmaceutical excipients (129 drug registration numbers), active pharmaceutical ingredients (73 varieties), and finished pharmaceutical products (282 approval numbers). Its flagship offering is hydroxypropyl starch plant capsules, produced via the world's first cassava starch capsule industrialization production line. The company is the sole listed pharmaceutical excipient manufacturer in China and also operates the 12-Yao Network (十二药网) B2B2C e-commerce platform for finished drug distribution.

Product overview

Hunan Er-Kang Pharmaceutical operates as a comprehensive pharmaceutical company with three core product lines: pharmaceutical excipients (129 registrations), finished pharmaceuticals (282 approvals), and active pharmaceutical ingredients (73 varieties). The company is recognized as China's leading pharmaceutical excipient brand enterprise. Key products include medicinal glycerin, ethanol, propylene glycol, sodium hydroxide, sucrose, hydroxypropyl starch hollow capsules, sulfadiazine sodium injection, compound licorice tablets, and sulbenicillin sodium. The company achieved industrialization breakthrough in starch plant capsules, being the world's first to produce tapioca starch capsules, and offers related new pharmaceutical excipients including citrate series products. The company also operates the 12-Yao Network B2B2C e-commerce platform through its Changsha Kaina subsidiary.

Differentiator

Problem solved

Functional benefit

Brands

• 淀粉植物胶囊 (Starch Plant Capsules): Hydroxypropyl starch hollow capsules and soft capsules — the world's first industrialized cassava starch capsule product, with FDA registration, DMF filing, IFANCA halal, KOF-K kosher, and Indonesian halal certifications.
• 湘易康 (Xiangyikang)
• 十二药网 (Shi Er Yao Wang)

Products and services

• Pharmaceutical Excipients (药用辅料)

Quantifiable outcome

• First cassava starch capsule industrialization enterprise globally, with complete upstream-to-downstream supply chain
• +3 more outcomes

Named customers1 record

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Four partnerships are on record, tiered minor and core.

• Mozambique (China-Mozambique Entrepreneurs Forum)minorStrategic or Co-development Partner · 1 January 2025Er-Kang Pharmaceutical was invited to participate in the China-Mozambique Entrepreneurs Forum and signed a cooperation memorandum. Tanzania Investment and Economic Special Zone Authority also inspected Er-Kang Pharmaceutical, indicating expanding African market partnerships.
• 西藏昌都光宇利民药业有限责任公司 (Tibet Changdu Guangyu Limin Pharmaceutical Co., Ltd.)coreStrategic or Co-development Partner · 1 January 2020In 2020, Er-Kang Pharmaceutical acquired 51% equity of Tibet Changdu Guangyu Limin Pharmaceutical Co., Ltd., making it a controlling subsidiary. Guangyu Limin holds 20 Tibetan medicine national drug approval numbers, strengthening Er-Kang's Tibetan medicine business foundation as the company's first step in integrating resources and expanding traditional Chinese medicine (TCM) business.
• 坦桑尼亚投资与经济特区管理局 (Tanzania Investment and Economic Special Zone Authority)minorStrategic or Co-development Partner · 1 January 2015Tanzania Investment and Economic Special Zone Authority inspected Er-Kang Pharmaceutical, indicating expanding African market partnerships and potential investment in Tanzania.
• Cambodia (Battambang Provincial Government)coreStrategic or Co-development Partner · 1 January 2013In 2013, under the Belt and Road initiative, Er-Kang established Hunan Er-Kang (Cambodia) Investment Co., Ltd. in Battambang Province. The Cambodia government has provided strong support, with Prime Minister Hun Sen meeting company leadership in May 2014. The Cambodia Finance Minister, Customs Director, and Ministry of Industry, Environment, Health officials have visited the company. Battambang Provincial Governor has provided ongoing guidance and support. The Cambodia Industrial Park has been designated as a Hunan Province 'Belt and Road' Key Cultivation Park.

Scale indicators6 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Colorcon: US-based specialty excipient manufacturer serving the global pharmaceutical industry with coating systems, modified release technologies, and functional excipients. Comparable in product scope to Er-Kang's high-value excipient business and in targeting multinational pharma customers.
• Roquette: Global leader in starch-based pharmaceutical excipients and a direct competitor in plant-based capsule materials. Roquette's pea and maize starch excipients and ongoing capsule shell innovation make it the most direct international comparable to Er-Kang's cassava-starch capsule franchise.
• Capsugel (Lonza): World's largest capsule manufacturer (acquired by Lonza), offering gelatin, HPMC, and plant-based capsule shells. Competes head-to-head with Er-Kang in the pharmaceutical capsule market and sets the benchmark for international capsule supply chains.
• Zhejiang Huahai Pharmaceutical: Chinese publicly listed pharmaceutical company focused on API manufacturing and finished formulations with strong international (especially US) regulatory presence. Comparable in scale and product mix (APIs + finished drugs) for cross-border benchmarking within China.
• Shandong Xinhua Pharmaceutical: Major Chinese API and pharmaceutical manufacturer with similar API/formulations mix and export orientation. Comparable in scale, public listing, and integrated API-plus-finished-drugs business model.

Emerging players

• ACG (Associated Capsules Group): India-based capsule manufacturer offering both gelatin and plant-based (HPMC) capsule shells. Comparable as a non-Chinese plant-based capsule competitor focused on global generic and nutraceutical customers.

Broad incumbents

• Evonik Industries: German specialty chemicals giant with a Healthcare & Life Sciences division producing pharmaceutical excipients, APIs, and drug delivery technologies. A broad incumbent offering overlapping capabilities (functional excipients, APIs) to similar pharmaceutical customers.
• BASF: Global chemical major with a Pharma Solutions segment producing excipients, APIs, and custom synthesis services. Competes with Er-Kang across excipient categories and serves multinational pharmaceutical customers with a much broader portfolio.
• Croda International: UK-based specialty ingredients company with a Life Sciences division producing pharmaceutical excipients and API delivery systems. Comparable as a global, technology-driven specialty excipient supplier to pharmaceutical manufacturers.

Regional players

• Shanghai Pharmaceuticals Holding: One of China's largest pharmaceutical groups covering APIs, finished formulations, and distribution. Comparable as a domestic Chinese incumbent with broader scope, useful for benchmarking Er-Kang's relative scale and distribution capabilities within the Chinese market.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/tongtai-pharma

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries17 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Hunan Er-Kang Pharmaceutical