Zixin Group Unveils Major Expansion, New Orders and High-Tech Product Launches: Will This Drive FY26 Earnings?

Key Highlights

• Halal-certified sweet potato snacks set for Indonesia market launch
• Secured RMB 3.96 million (approx. SGD 0.72 million) in new probiotic feedstock orders
• All poultry products from these feedstocks passed China national food safety standards
• New proprietary high-tech, higher-margin products and functional foods entering trial production
• Company expects material impact on FY26 earnings from these initiatives

Detailed Operational Progress

1. Overseas Expansion: Halal-Certified Sweet Potato Products

Zixin Group Holdings is accelerating its international growth by targeting the Indonesian market with a newly halal-certified range of sweet potato processed snacks. The company’s Fujian-based facilities received halal certification from Indonesia’s Halal Product Assurance Body, positioning Zixin to serve Muslim-majority markets with both existing and newly launched sweet potato snacks. The Group is focusing on imminent product launches for Indonesian distributors and developing new packaging tailored for global consumers. This strategic move could open up significant overseas revenue streams in the near term.

2. Circular Economy: New Probiotic-Infused Feedstock Orders

In a notable breakthrough for its circular economy model, Zixin has secured commercial orders totaling RMB 3.96 million for its proprietary probiotic-infused, fermented sweet potato feedstock. These orders, contracted with both chicken and white duck poultry farms, will be largely delivered in FY26. After feeding trials, the resulting chicken meat, white duck meat, and duck eggs—all tested—met China’s stringent food safety standards for contaminants and veterinary drug residues. This approval substantially de-risks Zixin’s feedstock business and could catalyze further orders as poultry farms seek safer, higher-value animal nutrition solutions.

Zixin outsources fermentation and production to a third-party plant in Fujian, collaborating with local agricultural waste collectors. The Group supplies its proprietary probiotic solution and technical support, focusing on converting agricultural waste into high-value feed. Notably, expansion of the fermentation plant’s capacity at a new location is expected to result in additional orders, indicating further revenue upside.

3. High-Tech, Higher-Margin Product Innovations

Recent stable weather in Liancheng County supports a robust sweet potato harvest from August through December 2025, ensuring ample raw material supply. Zixin has refined its sweet potato crisps and fries—launched in April 2025—in taste, texture, and crispiness, leading to encouraging sales. New packaging is under development for these enhanced products, which continue to gain traction in consumer markets.

Of particular note, Zixin is entering the commissioning phase of its new functional food line, focusing on sweet potato powder (including “single-cell” powder) derived from orange- and purple-fleshed varieties. Equipment testing concluded in September, and trial production is set for Q3 FY26. The powder will target the noodle and confectionery industries as a natural additive, with initial batches prioritized for interested commercial partners. Management expects formal trial production to start after China’s National Day and Mid-Autumn Festival holidays, using market feedback to optimize the product ahead of a full-scale launch.

4. Third-Party Manufacturing and Brand Diversification

While expanding its proprietary portfolio, Zixin continues to manufacture for well-established third-party brands in China and has secured additional purchase orders. This dual-track strategy provides both branded and OEM revenue streams, diversifying risk and supporting stable cash flows.

Potential Impact on Shareholders and Stock Price

The Board believes these developments—overseas market entry, new animal feed orders, high-tech product launches, and functional food production—will significantly drive organic growth in both revenue and earnings for FY26. The combination of new market channels, regulatory validation, and innovative product offerings may be material to the company’s financial results and could be price-sensitive information for investors.

Investors should particularly note:

• The company’s entry into Indonesia’s halal snack market can rapidly scale revenues.
• Successful animal feed trials and new orders validate Zixin’s circular economy model, potentially opening further B2B opportunities.
• Upcoming functional food launches could create high-margin revenue streams in the health and food additive markets.
• Material contributions from these initiatives are expected to impact FY26 earnings.

Management Guidance and Next Steps

Zixin’s management will prioritize supplying trial batches of sweet potato powder to prospective clients for collaborative R&D and feedback, with formal trial production commencing after national holidays. The Group will update shareholders on any further major developments as they occur.

Disclaimer

Cautionary Note: This article summarizes key information from Zixin Group Holdings’ recent operational update. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares. Consult your professional adviser before making any investment decision.

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