As one of the top ten enterprises in China's animal health care market, Shandong Xinde Technology Co., Ltd. (hereinafter referred to as “Xinde Technology”) officially submitted a prospectus to the Hong Kong Stock Exchange to be listed on the main board.
The Zhitong Finance App learned that since its establishment in 1999, after 27 years of development, Xinde Technology has become a comprehensive animal health enterprise integrating R&D, production and sales. The company's product line covers veterinary biological products (such as vaccines, antibodies, transfer factors, etc.), Chinese veterinary medicine, chemical preparations, and feed and feed additives.
According to Insight Consulting's data, in terms of revenue in 2025, Cindy Technology ranked 10th in the Chinese animal health care market and ranked in the top three in the Chinese poultry and veterinary biological products market.
In the cycle of the overall evolution of the industry towards scale and standardization, can this established animal insurance company use the capital market to further break the 10th place growth bottleneck and achieve a leap from the top three segmented tracks to a wider market?
Poultry biological products are in the top three, and scale expansion still needs to overcome competition
According to the Zhitong Finance App, animal health products are an important tool for preventing and controlling epidemics and reducing breeding losses in the modern farming industry. Their market demand is closely related to the scale of farming, disease prevention and control requirements, and the management level of farms.
According to Insight Consulting data, the size of China's animal health care market in 2025 is about 72.7 billion yuan. Among them, Xinde Technology ranked 10th in the Chinese animal health care market and ranked in the top three in the Chinese poultry veterinary biological products market, showing that the company has formed a certain position in the market segment. However, the company's overall market share is about 1.5%, which also shows that the industry is competitive enough, and there is still room for improvement in the future.
In terms of product structure, the company's business covers veterinary biological products, Chinese veterinary medicine, chemical veterinary drug preparations, feed and additives. Among them, veterinary biological products have become the most important source of revenue. In 2023 and 2024, the business revenue was about 626 million yuan and 631 million yuan respectively; in 2025, it grew to about 806 million yuan, accounting for 67.5% of the company's annual revenue.
Among them, if we look at vaccine products alone, revenue in 2025 was about 630 million yuan, an increase of 32.3% over the previous year, accounting for 52.7% of total revenue. The growth of core products not only drives overall performance, but also reflects that the company has a certain market foundation in segmented demand such as poultry disease prevention and control.
In addition to independently developing products, the company also enriches its product portfolio through proxy products. According to the prospectus, the MS-H and TS-11 vaccines are products exclusively distributed by the company in China. The total revenue of the two products increased from about 116 million yuan in 2023 to about 147 million yuan in 2025.
In terms of production capacity, the company has four major production bases, 34 production lines that have obtained GMP certification for the new version of veterinary medicine, and invested about 1.19 billion yuan in advanced production capacity building during the performance record period. The capacity utilization rate of some antibody and transfer factor production lines in 2025 has exceeded 90%.
As of May 31, 2026, the company had more than 6,800 customers and 321 dealers. Among them, direct sales revenue in 2025 was about 831 million yuan, accounting for 69.6% of total revenue. According to information, the company has maintained cooperative relationships with some large poultry and livestock breeding enterprises for more than ten years, which helps to understand terminal needs and promote product application. The customer retention rate in 2025 was 68.2%, reflecting a certain customer base, but it also means that customer relationship maintenance and continuous development are still the focus of business operations.
Overall, the market position of Xinde Technology in the field of poultry biological products provides a foundation for subsequent business development; however, there are many veterinary drug manufacturers in the industry, and market competition is still fierce. Whether we can continue to expand our share in the future still depends on product effectiveness, R&D transformation efficiency, sales and service capabilities, and cost management levels.
Profits rebounded after impairment disturbances, and overseas markets became an important increase
In terms of revenue performance, in 2023 and 2024, the company's revenue was about 985 million yuan and 982 million yuan respectively; in 2025, revenue increased to about 1,194 million yuan, an increase of 21.6% over the previous year. The main growth was driven by veterinary biological products and other businesses. In the first five months of 2026, the company's revenue was about 507 million yuan, up 3.9% year on year. The business continued to grow, but the growth rate was slower than in 2025. Subsequent performance still needs to be observed in light of annual demand and business structure.
Compared to revenue growth, profit trends can better reflect the quality of the company's operations. In 2024, the company's net profit was about 28.12 million yuan; in 2025, it dropped to about 10.84 million yuan. According to the prospectus, the company confirmed a goodwill impairment of approximately RMB 28.49 million during this period, and confirmed an impairment of about RMB 30.49 million on assets such as property, plant and equipment related to Shandong Haili. The related expenses had an impact on current profits. Therefore, the decline in net profit in 2025 is not entirely equivalent to the weakening of main business revenue performance, but impairment factors also remind investors that asset quality, post-merger and acquisition integration, and operating efficiency still require continued attention.
According to the non-Hong Kong financial reporting standards disclosed in the prospectus, after excluding certain items such as listing expenses and impairment losses, the company's adjusted net profit in 2025 was approximately $75.76 million, and the adjusted net interest rate was about 6.3%.
The Zhitong Finance App learned that as of the first five months of 2026, the company's performance sent a positive signal. The company's net profit for the period was approximately RMB 51.09 million, up 82.8% from RMB 27.95 million in the same period last year; net interest rate increased from 5.7% to 10.1%. Gross margin increased from 48.8% to 49.7% during the same period, and gross profit increased from about 238 million yuan to about 252 million yuan.
At the same time, net impairment losses on financial instruments fell from about 16.79 million yuan in the same period last year to about 440,000 yuan. Increased gross margin and reduced impairment losses have both improved current profit performance, but the recovery in profit over a single period is still not enough to prove that the trend has stabilized. In the future, it is still necessary to observe whether changes in revenue growth, cost control, and impairment projects will continue to improve.
In addition to this, overseas markets have provided the company with new room for growth. In 2023, the company's overseas revenue was about 12.16 million yuan; in 2024, it increased to about 28.28 million yuan; in 2025, it further increased to about 66.79 million yuan, an increase of 136.2% over the previous year. In the first five months of 2026, overseas revenue was about 42.38 million yuan, an increase of 91.2% over 22.16 million yuan in the same period last year. The share of overseas revenue increased from 1.2% in 2023 to 5.6% in 2025, and reached 8.4% in the first five months of 2026.
Currently, the company has been operating in markets such as Pakistan, Egypt, Vietnam, and Nigeria, and is screening local partners and promoting product registration in Africa, the Middle East and Southeast Asia.
Judging from the performance at this stage, overseas business is growing rapidly and is gradually becoming an important increase in the company's revenue structure. However, its overall share is still limited, and it is still difficult to completely change the company's business pattern based on the mainland China market in the short term.
However, there are differences in veterinary drug registration, market access, channel construction, and customer development in different countries. Whether overseas business growth can continue depends on the progress of product registration, local partner capabilities, and market expansion efficiency. At the same time, the company still has to face risks such as fluctuating raw material prices, industry competition, commercialization of R&D results, and changes in customer demand.
Overall, Xinde Technology has a long history of operation in the industry, established a certain market position in the field of veterinary biological products, and continuously strengthened its business foundation through R&D investment, production and construction, and sales networks. Revenue growth in 2025 and improvements in net profit and gross margin in the first five months of 2026 provided a positive signal for the company's subsequent development; the rapid expansion of overseas business also brought new possibilities for medium- to long-term growth.
In the future, whether the company can further increase its market share, stabilize profit performance, and transform overseas revenue growth into continuous returns will be an important measure of its development success.