HISUN(SH:600267) Guan Cha Zhe Wang·2026-01-14 00:46Core Viewpoint - The partnership between Haizheng Animal Health and Zhongyu Pet Food aims to enter the pet prescription food market, which is currently dominated by international brands, particularly Mars' Royal Canin, holding over 70% market share [1][2]. Industry Overview - The pet prescription food market in China is estimated to have a production-scale market size of approximately 1 billion yuan, indicating a significant demand gap and trust issues among consumers [1]. - There is a lack of national standards for prescription food in China, leading to regulatory ambiguities and industry chaos, as highlighted by past scandals [1]. Company Strategy - Haizheng Animal Health views this collaboration as a strategic investment rather than an immediate challenge to existing market leaders, focusing on becoming a trusted domestic option [2]. - The partnership with Zhongyu Pet Food is based on Zhongyu's extensive experience and technological advancements in pet food production, which Haizheng lacks [7][9]. Technological Edge - Zhongyu Pet Food has developed unique production techniques over nearly 30 years, which are crucial for creating palatable prescription food that pets will consume long-term [7][8]. - The collaboration emphasizes the importance of palatability in prescription food, as it must be consumed over extended periods for therapeutic effectiveness [7][8]. Investment and Development Plans - Haizheng plans to invest 200 million yuan to build a smart factory in Taizhou, Zhejiang, with an annual production capacity of 10,000 tons of pet prescription food, marking a significant commitment to in-house manufacturing [8][9]. - The decision to establish a factory rather than relying solely on contract manufacturing reflects a cautious approach to product quality and control [9].