Company Overview - Zhejiang Hai Zheng Pharmaceutical Co., Ltd. has received approval for its new veterinary drug, non-rocoxib chewable tablets, which are designed to alleviate pain and inflammation in dogs [1] - The approval of this drug marks a significant milestone in the company's strategic positioning within the veterinary medicine sector, enhancing its market competitiveness [1] Business Development - Hai Zheng Pharmaceutical has been focusing on the pet medicine sector, transitioning from its original emphasis on economic animals since 1992, and has made notable progress in recent years [2] - As of the end of 2024, the company operates two production bases with 25 production lines and has over 40 products with 71 approved registration numbers [2] - The company's e-commerce performance has surpassed 100 million yuan in 2024, with a cumulative growth of 11 times over five years, indicating a strong expansion in its pet medicine business [2] Financial Performance - In 2024, the revenue from anti-parasitic and veterinary products reached 713 million yuan, reflecting a year-on-year decline of 14.07%, although the gross profit margin increased by 1.55 percentage points due to improved cost control [2] - Despite not yet achieving profitability, the subsidiary Hai Zheng Animal Health reported a revenue increase of 3.21% to 410 million yuan [2][3] Industry Trends - The pet medical industry in China is experiencing rapid growth, with the market size reaching 94 billion yuan in 2024, a year-on-year increase of 14.49% [4] - The approval of 52 new pet drugs by the Ministry of Agriculture and Rural Affairs in 2024, with 31 being domestically produced, indicates a significant enhancement in domestic drug development capabilities [4] - The integration of AI technology in the pet medical field, exemplified by the launch of the Vet1 AI model, represents a breakthrough in the industry [4] Future Outlook - The pet medical market is expected to continue expanding as pet owners increasingly prioritize their pets' health, driven by technological advancements and new medical models [5] - Companies are encouraged to leverage opportunities through innovation, service upgrades, and strategic partnerships to enhance competitiveness and promote sustainable industry growth [6]

Core Viewpoint - Haizheng Pharmaceutical (600267) announced that its subsidiary, Zhejiang Haizheng Animal Health Products Co., Ltd., has received approval from the Ministry of Agriculture and Rural Affairs of the People's Republic of China for the new veterinary drug registration certificate for Nirocoxib Chewable Tablets, officially classified as a Class II new veterinary drug [1] Group 1 - The new veterinary drug, Nirocoxib Chewable Tablets, is intended for alleviating pain and inflammation caused by canine osteoarthritis and clinical surgeries [1] - The registration application for Nirocoxib Chewable Tablets was submitted in June 2022, and it was processed by the Ministry of Agriculture and Rural Affairs along with other entities [1] - The product is now ready for production and will be launched once it obtains the veterinary product approval number, but it is not expected to have a significant impact on the company's performance in the short term [1]