Offshore Trust Insight | YSB (09885.HK) Up 2.33% Intraday; Founder Zhang Buzhen's Trust-Controlled MIYT Holds 18.35%

On October 28, 2026, the pharmaceutical e-commerce and off-hospital distribution theme traded divergently, and YSB (09885.HK) rose. As of 14:22, the stock was quoted at HKD 3.510, up 2.33%, with a turnover of about HKD 1.0305 million and a market capitalisation of about HKD 2.431 billion based on the latest price. It touched a low of HKD 3.355 and a high of HKD 3.550 during the day, with an amplitude of 5.69%.

On the news front, the company released its interim results on August 20, 2026 and disclosed progress on its share repurchase: between March 23 and July 21, 2026, the company used HKD 159 million to repurchase more than 35 million shares through the company's trust, representing more than 5.1% of total issued shares as at June 30, 2026; the board additionally approved a repurchase mandate of up to HKD 100 million to buy back and cancel shares on-market as appropriate. Over the same period, the chairman increased his shareholding in the company on multiple occasions in the open market. According to the HKEx disclosure of interests platform, MIYT Holdings Limited increased its holding by 500,000 shares at an average price of HKD 3.4882 per share on May 29, 2026, raising its stake to 126,278,784 shares, or 18.35%; Zhang Buzhen declared holdings of 157,719,997 shares, or 22.92%, on the same day.

China Great Wall Securities noted in a research report that, against a backdrop of pressure on the operating environment for off-hospital brick-and-mortar pharmacies and a market entering a stock-competition plateau, the company maintained steady growth in results, with the self-operated business benefiting from an expanded buyer base and improved logistics and customer service experience, while the platform business was affected by the sluggish pharmaceutical retail market; the company's high-margin businesses, including own-brand products and manufacturer-first-promotion, continued to scale, and the company has strategically entered the pharmaceutical instant retail segment.

It is understood that YSB Inc. listed on the Main Board of HKEX on June 28, 2023 at an offer price of HKD 20.00, offering 15,808,800 shares globally (10% for the Hong Kong public offering and 90% for the international offering), raising net proceeds of about HKD 215 million; ZGC International Limited, under the Zhongguancun Development Group, was a cornerstone investor subscribing for 5.0144 million shares for USD 12.80 million; the Hong Kong public offering was about 5.6 times subscribed. The company is a digital integrated service platform for the off-hospital pharmaceutical industry, centred on transaction matching and self-operated distribution linking upstream pharmaceutical companies and distributors with downstream pharmacies and primary healthcare institutions, and ranked first among China's off-hospital digital pharmaceutical industry service platforms by 2022 GMV with a 21% market share. The stock closed at HKD 21.10 on its debut, up 5.5% from the offer price, with a market capitalisation of HKD 13.343 billion; as at the intraday quote on October 28, it was quoted at HKD 3.510, down 82.5% cumulatively from the offer price, with a market capitalisation of HKD 2.431 billion; its 52-week high was HKD 9.675 and its 52-week low HKD 2.960. As at June 30, 2026, the company had about 692 million issued shares.

In terms of shareholding structure, according to the HKEx disclosure of interests platform, Zhang Buzhen directly declared holdings of 157,719,997 shares, or 22.92% (after an increase on May 29, 2026), while his holding platform MIYT Holdings Limited declared 126,278,784 shares, or 18.35%; H Capital Management held 8.06% and Tiger Global Management 7.73%; the holding of the Zhu Mengyi side through Sounda Properties Limited fell from 77,724,784 shares (11.30%) on April 24, 2026 to 52,516,157 shares (7.59%) on July 15; Meta Group Limited's holding fell from 61,324,784 shares (8.91%) on April 22, 2026 to 39,116,357 shares (5.65%) on July 14.

It is understood that YSB's shareholding structure involves offshore trusts. According to the company's announcement in December 2023, MIYT Holdings Limited, the single largest shareholder, is controlled by a trust of founder, executive director and chief executive officer Zhang Buzhen; as at the announcement date, MIYT Holdings held 125 million shares of the company, representing about 19.60% of all issued shares, and voluntarily undertook not to sell the relevant shares for an additional 180 days after the expiry of the initial lock-up period. In the current disclosure of interests, MIYT Holdings and Zhang Buzhen filed separately, and no separate filing by the trustee of that trust has been identified; the name, trustee, establishment date, protector and scope of beneficiaries of the trust have not been disclosed. In addition, Futu Trustee Limited, as trustee, declared holdings of 41,303,615 shares, or 6.00%, on June 11, 2026 (34,564,815 shares, or 5.02%, on May 26), with its beneficiaries and trust arrangements not disclosed.

Regarding offshore trusts, on July 24, 2026, the Ministry of Finance and the State Taxation Administration jointly issued the Announcement on Matters Concerning Individual Income Tax on Offshore Trusts (Announcement No. 21 of 2026), bringing the entire life cycle of an offshore trust — establishment, existence and termination — into the individual income tax administration system, establishing three look-through points of establishment, existence and termination with a uniform 20% tax rate. The announcement specifies that during the existence of an offshore trust, income generated by an individual resident's offshore trust and by overseas entities held or controlled by that trust, whether actually distributed or not, is taxable to that individual resident, who must file and pay individual income tax on an annual basis. Article 6 of the announcement specifies that where, during the existence of an offshore trust of an individual resident, the individual resident becomes a non-resident individual, the taxable income is the balance after deducting the original value from the market value of the offshore trust's property on the day the individual becomes a non-resident, and individual income tax must be filed and paid. The 90-day supplementary filing window set by the announcement runs from July 24, 2026.

On the operating side, the company's total revenue in the first half of 2026 was RMB 10.283 billion, up 4.5% year on year; net profit attributable to shareholders was RMB 111 million, up 41.9%; adjusted net profit was RMB 138 million, up 12.9%; net cash inflow from operating activities was RMB 264 million; as at June 30, cash and cash equivalents exceeded RMB 3.875 billion. By business, self-operated business revenue was RMB 9.884 billion, up 5.3% and accounting for 96.11% of total revenue; platform business service revenue was RMB 378 million, down 13.3% and accounting for 3.68%; other revenue was RMB 21.424 million. The overall gross margin was 11.2%, flat year on year; own-brand transaction value was RMB 1.111 billion, up 30.4%, lifting the self-operated gross margin to 8.3%; manufacturer-first-promotion GMV was RMB 1.281 billion, up 18.6%. On operating metrics, the platform recorded about 460,000 monthly average active buyers and about 430,000 monthly average paying buyers, with paying buyers at 94% of active buyers and about 29 orders per paying buyer per month; monthly average sellable SKUs rose to about 4.30 million, up 9%; the self-operated business worked with more than 12,000 suppliers, with on-time delivery rising to 97.4%.

In terms of products and business developments, the primary healthcare solution "Guangpu Xiaowu" covers about 25,000 end users with equipment, and the SaaS system "Guangpu Yunzhen" has more than 4,000 paying users; in Chinese medicine, the "Jinfang standard" covers 372 varieties, and sales of Chinese medicine decoction pieces exceeded 20,000 tonnes in the first half, up about 10%. The company has also strategically entered the pharmaceutical instant retail segment, adopting a dual-driver model of internal incubation and external investment.