(Yicai Global) Aug. 25 -- Dingdang Health Technology Group, a Chinese online pharmacy set up by the founder of drugmaker Renhe Pharmacy, has been given the green light for an initial public offering in Hong Kong.

Hong Kong Exchanges and Clearing approved Dingdang Health’s IPO, after the Beijing-based startup filed in March, the bourse operator said recently. An attempt last year failed.

Dingdang Health did not disclose in its listing prospectus how much the company aims to raise from the share sale, but plans to use the proceeds to expand, including developing a smart pharmacy network while attracting more customers.

A pioneer and leader in providing express digital healthcare services in China, Dingdang Health guarantees deliveries of over-the-counter drugs to customers within 28 minutes on a 24/7 basis, according to its prospectus.

As of June 30, Dingdang Health had 35.7 million registered users, 700,000 monthly paying users, and 300,000 monthly active users.

Renhe Pharmacy’s Yang Wenlong controls Dingdang Health, with 50.5 percent of voting rights. His son, Yang Xiao, is chairman. Renhe has been one of its top five suppliers since 2018.

Founded in 2014, Dingdang Health ranked third in its sector by revenue last year, with a market share of 1 percent, according to a report by Frost & Sullivan. The markets leaders had 10 percent and 6.5 percent shares.

Dingdang Health’s losses have deepened due to big operating costs and outlays on sales and marketing. It had a first-quarter net loss of CNY404 million (USD59 million) on revenue of CNY987 million, after losing CNY1.6 billion last year on revenue of CNY3.7 billion (USD537 million).

Editor: Emmi Laine, Xiao Yi