Core Viewpoint - Zhejiang Haizheng Pharmaceutical Co., Ltd. has announced the establishment of a joint venture with Zhongyu Pet Food (Luohe) Co., Ltd. to enhance its strategic layout in the animal health non-drug sector, particularly in pet food production and sales [1][23]. Group 1: Joint Venture Details - The joint venture will be named Zhejiang Haizheng Zhongyu Animal Nutrition Technology Co., Ltd. and will focus on the production, research, and sales of pet prescription food [5][6]. - Haizheng Dongbao will contribute 3,000 million RMB (60% of the registered capital) and Zhongyu Pet Food will contribute 2,000 million RMB (40% of the registered capital) [5][6]. - The total investment planned for the joint venture's future projects is 236.1 million RMB, with 204.3 million RMB requiring approval [8]. Group 2: Financial and Operational Background - Zhongyu Pet Food reported total assets of 562.82 million RMB and a net profit of 72.64 million RMB for the year 2024, with a revenue of 627.77 million RMB [4]. - As of September 30, 2025, Zhongyu Pet Food's total assets increased to 896.95 million RMB, with a net profit of 84.94 million RMB for the first nine months of 2025 [4]. Group 3: Governance and Rights - The joint venture's governance structure includes a board of directors with five members, where Haizheng Dongbao can nominate three directors and Zhongyu Pet Food can nominate two [11]. - Shareholders have rights to information, including access to accounting records and other relevant data [15]. Group 4: Project Development and Financing - The project will be developed in two phases over four years, with a total investment of 497.17 million RMB, including construction costs and working capital [23][24]. - The company plans to apply for a bank loan of 334.12 million RMB to fund the construction phase [23].

Core Viewpoint - The company successfully passed the Non-GMO Identity Preservation (IP) verification audit conducted by the international authority SGS, ensuring the purity of its non-GMO products [2][6]. Group 1: Certification and Audit - The audit took place from December 28 to 31, 2025, covering products such as maltodextrin, crystalline fructose, anhydrous sugar, corn protein powder, and spray-dried corn skin [2][6]. - SGS experts conducted a comprehensive verification of the company's entire control system, from raw material selection to production site control and full-process testing [8]. Group 2: Quality Control and Management - The company received high praise for its quality control capabilities and the effectiveness of its traceability system, which meets global market requirements for non-GMO products [8]. - The Non-GMO IP verification aims to prevent potential contamination by genetically modified components throughout the production supply chain through stringent quality control and the establishment of complete traceability information [3][6]. Group 3: Future Commitment - The company is committed to maintaining its quality standards and providing high-quality products to the industry and customers, reinforcing its product quality safety measures [8].

Core Insights - The establishment of the starch and polyol research and development center, named "Yangmei," by Roquette (China) Nutrition Food Co., Ltd. represents a significant investment of 12 million yuan and aims to address industry technical bottlenecks and shorten product launch cycles [1][3]. Group 1: Company Developments - The new R&D center will cover over 1,000 square meters and integrate functions from rational analysis to pilot testing, expected to be operational by early 2026 [1]. - Roquette has invested over 3 billion yuan in its operations in China since acquiring the LG Group's sorbitol factory in 2001, establishing itself as a core production base with over 80 hectares of land [5]. - The company exports to over 20 countries, with exports accounting for 30% of its total output, and has collaborated with well-known clients such as Yili and Haitian Flavoring [5]. Group 2: Industry Impact - The R&D center aims to create an innovative ecosystem focused on solving industry pain points, rapid transformation, and empowering the sector, addressing challenges like complex preparation processes and high costs [3]. - The center will enable a "rapid response closed loop" from customer demand to industrial production, significantly reducing product time-to-market [3]. - Roquette's advancements in starch processing, including unique enzymatic and separation technologies, will enhance product offerings across food, pharmaceuticals, and cosmetics, promoting health and sustainability trends [3].