Offshore Trust Insight | SHINEWAY PHARM (02877.HK): H1 Revenue of RMB 1.181 Billion as Controlling Shareholder's Family Trust Holds 66.12% Summary
- SHINEWAY PHARM was listed on the Main Board of the Stock Exchange on December 2, 2004 at an offer price of HKD 4.36 per share, with a global offering of 200 million shares.
- the company declared a special interim dividend of RMB 0.85 per share on September 18, 2026, equivalent to HKD 0.995 per share based on a conversion rate of RMB 1 to HKD 1.171, which was paid on October 15 to shareholders on the register of members as at October 7.
- SHINEWAY PHARM is engaged in the research, development, production and sale of modern Chinese medicine injections, soft capsules, granule products and traditional Chinese medicine formula granules.
NewTimeSpace News: On October 30, 2026, SHINEWAY PHARM closed at HKD 7.505, up 3.09% for the day, with turnover of approximately HKD 7.69 million. According to public information, SHINEWAY PHARM was listed on the Main Board of the Stock Exchange on December 2, 2004 at an offer price of HKD 4.36 per share, with a global offering of 200 million shares.
On the shareholding structure, the company's 2026 interim report shows that Forway Investment Limited held 546,802,990 shares as beneficial owner, representing approximately 66.12%, while BH Corporate Services Ltd reported an interest in the same block of shares in its capacity as trustee of a discretionary trust.
The shareholding chain is as follows: Li Zhenjiang (founder)→The Li Family 2004 Trust→BH Corporate Services Ltd (trustee)→Forway Investment→546,802,990 shares (approximately 66.12%). The interim report notes that Mr. Li Zhenjiang is deemed to be interested in these shares by virtue of being the founder, but does not himself have decision-making, distribution or beneficial rights over Forway or the discretionary trust.
On the corporate front, the company declared a special interim dividend of RMB 0.85 per share on September 18, 2026, equivalent to HKD 0.995 per share based on a conversion rate of RMB 1 to HKD 1.171, which was paid on October 15 to shareholders on the register of members as at October 7.
On the policy front, 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), which brings the establishment, existence and termination of offshore trusts across their entire life cycle into the individual income tax administration system, establishes three look-through points, namely establishment, existence and termination, and applies a uniform tax rate of 20%. The announcement specifies that, during the existence of an offshore trust, income generated by an offshore trust of a resident individual and by offshore entities held or controlled by that trust is subject to individual income tax, whether or not actually distributed, with the resident individual as the taxpayer filing and paying tax on an annual basis.
On the operating front, the interim results show that SHINEWAY PHARM's revenue for the first half of 2026 was RMB 1.181 billion, down 28.5% year on year; gross margin was 69.9%, down 2.3 percentage points from 72.2% in the same period last year; and profit for the period was RMB 469 million, down 23.7% year on year.
According to public information, SHINEWAY PHARM is engaged in the research, development, production and sale of modern Chinese medicine injections, soft capsules, granule products and traditional Chinese medicine formula granules. In the first half of 2026, prescription drugs and over-the-counter drugs accounted for approximately 88.5% and 11.5% of revenue respectively, with products covering therapeutic areas such as cardiovascular and cerebrovascular, respiratory, digestive, paediatrics, orthopaedics, tonifying and replenishing, nervous system and gynaecology.
