New Stock News | Xinde Technology Files for Hong Kong Stock Exchange Listing a Second Time, Ranks Tenth Among Domestic and Overseas Manufacturers in China's Animal Health Market

According to the disclosure by the Hong Kong Stock Exchange on October 14, Shandong Xinde Technology Co., Ltd. (referred to as: Xinde Technology) submitted a listing application to the Main Board of the Hong Kong Stock Exchange, with Zhongtai International as its sole sponsor. This is the company's second submission to the Hong Kong Stock Exchange. According to data from China Insights Consultancy, based on 2025 revenue, Xinde Technology ranks tenth among domestic and overseas manufacturers in China's animal health market, and ranks among the top three in China's poultry veterinary biological products market. Company Overview The prospectus shows that Xinde Technology was established in 1999 and is an animal health enterprise in China. The company is primarily engaged in the research and development, production, and sales of a full range of animal health and supporting products, covering veterinary biological products (such as vaccines, antibodies, transfer factors, etc.), traditional Chinese veterinary medicine, chemical drug preparations, feed and feed additives, achieving the prevention, diagnosis, treatment, and control of diseases in poultry, livestock, aquatic animals, and pets. During the track record period, the majority of the company's revenue came from the sales of animal health and supporting products. Xinde Technology possesses proprietary technology platforms that enable continuous innovation, development, and commercialization of new products. The company's veterinary transfer factor product (trade name: Xinbituo) is the first approved transfer factor product in China and ranks first in China's domestic veterinary transfer factor market. The company is the world's first enterprise to adopt suspension culture technology to produce vaccines that can prevent poultry from being infected with the HPAI virus, and is also the first enterprise in China approved to produce a quadruple vaccine that can prevent poultry from being infected with Newcastle disease virus, avian influenza (H9 subtype) virus, infectious bursal disease virus, and avian adenovirus. During the track record period, Xinde Technology invested RMB 1.19 billion to support the construction of advanced manufacturing capacity and continuously invested in innovative research and development. As of the latest practicable date, the company has established four major production bases in Shandong, Beijing, and other locations, equipped with 34 production lines all certified under the new version of veterinary drug GMP. The company's product line enables it to have the production capacity to provide comprehensive solutions for animal disease prevention and control, covering preventive and therapeutic products, including biological products (such as vaccines, antibodies, transfer factors), traditional Chinese veterinary medicine, and chemical drug preparations. During the track record period, the designed capacities of the company's live vaccines, antibodies, and transfer factors remained stable at 10.25 billion doses, 2.52 million liters, and 1.97 million liters per year, respectively. In the 2025 financial year, the utilization rates of antibodies and transfer factors at the Shandong Xinde Industrial Park reached 91.2% and 91.5%, respectively. China's veterinary DNA vaccine industry is still in its early stages, with only a small number of products approved for marketing. As of the latest practicable date, Xinde Technology is one of only three enterprises that have obtained DNA vaccine production qualifications, namely the avian influenza (H5 subtype) bivalent DNA vaccine (pH5-Re15 strain and pH5-Re16 strain) and the avian influenza (H5 and H7 subtypes) quadrivalent DNA vaccine (pH5-Re15 strain, pH5-Re16 strain, pH7-Re5 strain, and pH7-Re6 strain), enabling the company to seize business opportunities presented by China's early-stage veterinary DNA vaccine market. Xinde Technology is committed to expanding its precision prevention and control service model to overseas markets. As of the latest practicable date, the company has selected local business partners for its products in 32 countries across Africa, the Middle East, and Southeast Asia, and has completed or initiated registration procedures, and plans to commence export sales after completing registration. Financial Information Revenue For the years 2023, 2024, 2025, and the five months ended May 31, 2026, the company achieved revenue of approximately RMB 985 million, RMB 982 million, RMB 1,194 million, and RMB 507 million, respectively. Gross Profit and Gross Profit Margin For the years 2023, 2024, 2025, and the five months ended May 31, 2026, the company recorded gross profit of approximately RMB 456 million, RMB 452 million, RMB 588 million, and RMB 252 million, respectively, corresponding to gross profit margins of 46.3%, 46.0%, 49.3%, and 49.7%, respectively. Profit for the Year/Period For the years 2023, 2024, 2025, and the five months ended May 31, 2026, the company recorded profit for the year/period of approximately RMB 34.763 million, RMB 28.118 million, RMB 10.839 million, and RMB 51.094 million, respectively. Industry Overview The animal health industry is a comprehensive industry dedicated to the prevention, diagnosis, and treatment of animal diseases and health management. Through disease prevention, diagnostic testing, therapeutic intervention, and scientific management, it ensures the normal physiological functions of livestock and poultry animals and pets and reduces disease risks. The industry covers fields such as vaccines, veterinary drugs, feed additives, diagnostic equipment, and health services, which can enhance animal welfare, safeguard food safety and production efficiency in the livestock industry chain, and meet the consumer demand for pet health management, while also having important strategic significance for the prevention and control of zoonotic diseases and the promotion of ecological sustainable development. Currently, there are more than 1,500 veterinary drug manufacturers in China, and the animal health industry faces intense competition. The market size of China's animal health industry was RMB 50.9 billion in 2019, growing to RMB 72.7 billion in 2025, with a compound annual growth rate of 6.1%. It is expected that by 2031, the market size will grow at a compound annual growth rate of 6.9% to RMB 108.6 billion. China's animal health market can be further divided into veterinary biological products, chemical drug preparations, traditional Chinese veterinary medicine, and veterinary APIs, which have different functions in the animal health industry. Veterinary biological products, especially vaccines, are mainly used for disease prevention, while chemical drug preparations are mainly used for treatment. Traditional Chinese veterinary medicine is typically used for health management and auxiliary treatment, and may partially replace certain chemical drug preparations amid tightening antibiotic regulations and growing demand for sustainable farming. Overall, these products are generally complementary in nature, with limited indirect competition due to differences in their functions and market positioning. Veterinary biological products refer to animal health products prepared through biotechnological means based on substances of biological origin, mainly used for the prevention of animal diseases. Such products are mostly made from viruses, bacteria, or their antigenic components, as well as biological materials such as animal serum and cells, prepared through cell culture, fermentation, or genetic engineering techniques, and can establish immune protection against specific diseases. Veterinary biological products mainly include veterinary vaccines, veterinary antibodies, transfer factors, and veterinary diagnostic reagents. The market size of China's veterinary biological products was RMB 11.84 billion in 2019, increasing to RMB 15.66 billion in 2025, with a compound annual growth rate of 4.8%. It is expected that by 2031, the market size will grow at a compound annual growth rate of 8.1% to RMB 25.02 billion. According to the China Veterinary Drug Association, there were approximately 200 market participants in China's veterinary biological products market in 2025. Among these segments, veterinary vaccines occupy a dominant position in the market, accounting for approximately 94.5% of the total market size in 2025, while therapeutic antibodies, transfer factors, and veterinary diagnostic reagents accounted for approximately 3.9%, 1.2%, and 0.4%, respectively. In the veterinary biological products market, veterinary vaccines are the largest sub-category by market size. The market size of China's veterinary biological products was RMB 15.66 billion in 2025, of which the veterinary vaccine market size was RMB 14.80 billion, accounting for 94.5% of the entire veterinary biological products market. Vaccine products typically have relatively high technical barriers and stricter regulatory requirements, and are priced higher. Their main customers include enterprises that are large-scale farms and commercial farms, which typically procure through centralized procurement and focus on product quality, supply stability, and technical support. Board of Directors Information The Board of Directors currently consists of nine directors, including four executive directors, two non-executive directors, and three independent non-executive directors. The Board of Directors has a term of three years, subject to re-election, and is responsible for and has general authority to manage and operate the business. Shareholding Structure Mr. Li Chaoyang is the Chairman, Executive Director, and President, and one of the controlling shareholders of the company. As of the latest practicable date, Mr. Li Chaoyang is able to exercise approximately 45.08% of the voting rights of the company through (i) 34,270,874 shares directly held by him, and (ii) 25,199,100 shares held by Yinte International. Yinte International is a company incorporated in the British Virgin Islands and is wholly owned by Hong Kong Xinde, which is wholly owned by Mr. Li Chaoyang. The 17 other existing shareholders each hold less than 1% of the company's total shareholding, with a combined shareholding ratio of 4.59%. Intermediary Team Sole Sponsor: Zhongtai International Capital Limited Legal Advisors to the Company: As to Hong Kong law: Ho & Partners; As to PRC law: King & Wood Mallesons; As to international sanctions law: Hogan Lovells Cadwalader International LLP (formerly known as Hogan Lovells International LLP) Legal Advisors to the Sole Sponsor: As to Hong Kong law: Jia Yuan Law Offices; As to PRC law: Jia Yuan Law Offices Auditors and Reporting Accountants: Ernst & Young Industry Consultant: China Insights Consultancy (Shanghai) Co., Ltd. Compliance Advisor: Zhongtai International Capital Limited