New Stocks Outlook | Hidden Worries After Reaching Revenue of Hundred Billion: The "Small Profits" and "Single" Predicament of Haide International

Mainland Hong Kong Exchange welcomes heavyweight agricultural technology sector listing applications again. On January 12th, Haida International Holdings Limited (referred to as Haida International) officially submitted its prospectus to the Hong Kong Stock Exchange, with joint sponsors Morgan Stanley, CICC, and GF SEC. As a technology-driven agricultural solutions provider based on the foundation of the feed business and targeting emerging markets globally, Haida International has shown strong growth in performance in recent years: from 90.25 billion yuan to 111.77 billion yuan in revenue from 2023 to the first three quarters of 2025, and profits have also increased significantly from 360 million yuan to 869 million yuan during the same period, demonstrating significant profit improvement ability under the layout of the entire industry chain and global operations. The company focuses on core markets in Asia (excluding East Asia), Africa, and Latin America, and has established a leading regional position through production base networks in six countries including Vietnam, India, and Indonesia. According to Frost & Sullivan data, in 2024, Haida International ranked second among aquatic feed suppliers in Asia (excluding East Asia) and third in the Vietnamese feed market, with an annual output of aquatic feed exceeding one million tons, showcasing its key position in the livestock supply chain in emerging markets. The proceeds from this listing are expected to further strengthen its technological integration and capacity expansion in the global agricultural value chain. Performance growth concerns still exist Financially, although Haida International has achieved scale growth in revenue and profits during the reporting period, deep-rooted issues such as weak profit foundation, deteriorating expense control, and highlighted operational risks are reflected in the financial data. Despite the increase in revenue from 90.25 billion yuan in 2023 to 111.77 billion yuan in the first nine months of 2025, net profit also increased from 3.60 billion yuan to 8.69 billion yuan. However, the net profit margin has remained below 8%, indicating that the company is still operating with thin profit margins, and profit growth is significantly affected by raw material prices and industry cycles, showing a lack of structural stability. Of particular concern is administrative expenses, which have increased from 2.8% to 3.6% of revenue, with a significant increase in amount compared to revenue growth, reflecting potential issues with management efficiency decline or cost control failure resulting from the company's expansion. Although the sales and R&D expenses ratio remains stable, it has not brought about a substantive breakthrough in profitability, and input-output efficiency remains to be verified.