Cellyan Biotechnology Co., Ltd (NASDAQ: HKPD)

Cellyan Biotechnology Co., Ltd provides OTC pharmaceutical cross-border e-commerce supply chain services and procurement and distribution solutions primarily in Mainland China. The company operates through its Hong Kong subsidiaries, Joint Cross Border Logistics Company Limited and V-Alliance Technology Supplies Limited, to facilitate the import, storage, packaging, and delivery of over-the-counter pharmaceutical products sourced from Hong Kong, Taiwan, Japan, and select European countries. Its services support merchants on major Chinese e-commerce platforms and logistics partners seeking compliant and efficient cross-border supply chain solutions.

The company generates revenue through two core divisions: Supply Chain Services and Procurement and Distribution. Supply Chain Services revenue was $12,481,187 for the fiscal year ended March 31, 2025, representing 61.4% of total revenue, derived from services such as pre-consultation, product classification, HKDOH enlisting, import documentation, warehousing, value-added processing, customs clearance, and last-mile delivery coordination. Procurement and Distribution revenue was $7,826,897 for the same period, accounting for 38.5% of total revenue, generated by procuring OTC pharmaceutical products and selling them to merchants on Chinese e-commerce platforms and pharmaceutical distributors.

The company operates through the following segments:

• Supply Chain Services: This segment provides end-to-end logistics solutions for cross-border OTC pharmaceutical products, including engaging in-house medical professionals to sort and classify products, submitting information to the Hong Kong Department of Health for enlisting, applying for drug import certificates, coordinating warehouse operations, and arranging transportation to consumers in Mainland China. The segment offers value-added services such as labeling, packaging, batch processing, photography, counting, disposal, and gift packaging or pamphlet inclusion. Joint Cross Border utilizes its proprietary “Extraordinary Supply Chain V2.0” enterprise resource planning system to streamline order and warehouse operations, integrate with warehouse management software, and optimize picking and packaging workflows based on order details.

• Procurement and Distribution: This segment focuses on sourcing overseas OTC pharmaceutical products and distributing them to merchants on established Chinese e-commerce platforms and pharmaceutical distributors. The procurement process involves analyzing sales and customer demand, negotiating with suppliers, comparing quotations and lead times, confirming shipping schedules, deploying medical and customs teams to process import documents, and coordinating with freight companies for delivery to Hong Kong warehouses. Once products are received, distribution includes executing sales contracts, confirming warehouse availability, and shipping upon payment confirmation. The segment leverages data from the Supply Chain Services division to identify new product opportunities and maintain supplier relationships with distributors outside China, pharmaceutical conference attendees, and prior transaction partners.

Cellyan Biotechnology Co., Ltd holds a leading position in Mainland China’s OTC pharmaceutical cross-border e-commerce supply chain market, having ranked first by revenue in 2022 according to the F&S Report. The company differentiates itself through its advanced proprietary technology infrastructure, particularly the “Extraordinary Supply Chain V2.0” ERP system, which enhances operational efficiency, reduces logistics fulfillment costs, and improves scalability. Its competitive strengths include strong relationships with major platform logistics partners like CaiNiao, flexibility in tailoring one-stop solutions, regulatory compliance with Hong Kong authorities, and an experienced management team led by founder Lap Sun Wong and director Zhifang Zhang, who bring extensive expertise in supply chain, e-commerce, and pharmaceutical industries.

The company’s primary customers are e-commerce platform logistics partners such as CaiNiao, which accounted for 11.54% of total revenue in the fiscal year ended March 31, 2025, and merchants on major Chinese e-commerce platforms including Tmall, JD.com, Meituan, and Pinduoduo. Cellyan Biotechnology Co., Ltd also serves independent merchants on these platforms and pharmaceutical distributors seeking access to OTC pharmaceutical products from Hong Kong, Taiwan, Japan, and Europe. As of March 31, 2025, the company provided services to over 300 online merchants, with nearly all customers located in Mainland China or Hong Kong.