A single product supports the IPO! East China's big seller has made a net profit of over 100 million this year

Yuanfei Pet successfully completed its IPO with just a dog leash , and became a topic of discussion among industry insiders.

Recently, Yuanfei Pet disclosed its first financial report after listing, which is the third quarter report of this year. What is the performance of this report card?

Q3 performance was slightly weaker, but Yuanfei Pet's net profit exceeded 130 million yuan

The financial report shows that in the first three quarters of this year, Yuanfei Pet's revenue was 784 million yuan, a year-on-year decrease of 6.1%, and its net profit was 138 million yuan, a year-on-year increase of 21.11% . The revenue in the third quarter was 236 million yuan, a year-on-year decrease of 33.75%.

Founded in 2004, Yuanfei Pet was successfully listed in August this year, becoming the "first dog leash stock" in the industry. Although it has many products, it can be seen that its main business is pet traction equipment.

Yuanfei Pet's prospectus shows that from 2019 to the first half of 2021, its sales revenue of pet traction equipment was 330 million yuan , 352 million yuan and 295 million yuan, respectively, accounting for 64.27%, 58.01% and 61.90% of its main business revenue, respectively.

During the reporting period, the company's revenue structure remained basically unchanged , that is, about 60% of its revenue came from pet traction equipment . As the main revenue-generating category, its growth rate was far ahead of the company's other products.

Previously, Yuanfei Pets’ official website claimed that the company “ produces 50 million pet leashes per year . ” It can be seen that it is not an exaggeration to successfully squeeze into the capital market with just a dog leash.

In terms of its market, Yuanfei Pet mainly sells overseas. Between 2019 and 2021 , more than 90% ( over 94% ) of the company's revenue came from overseas markets .

Among them, in 2021, the company achieved revenue of 783 million yuan in North America, accounting for 73.63%; the European region achieved revenue of 174 million yuan, accounting for 16.32%, and other overseas markets include Asia , South America , Oceania and other countries .

As for its R&D sector, Yuanfei Pet has established R&D teams in both the United States and Shanghai, with approximately 20,000 SKUs and an annual update frequency of around 40% . The large number of SKUs and high update frequency , as well as timely response to market demand, have led to a steady increase in its revenue.

It is reported that after the fundraising and investment projects reach full capacity, Yuanfei Pet will have an annual production capacity of 12,800 tons of pet snacks and 47 million pieces of pet traction equipment . Therefore, it also expects the company to achieve net profit attributable to shareholders of RMB 200 million , RMB 240 million , and RMB 290 million in 2022-2024 , respectively, a year-on- year increase of 47% , 18% , and 23% , respectively .

The track is developing rapidly, and listed companies are experiencing a "highlight" moment in performance

There is no need to say much about the popularity of the pet industry. Currently , there are a total of 7 pet companies that have been successfully listed in China , of which 5 are mainly engaged in overseas markets , namely China Pet Foods , Petco , Yiyi , and Luss in the pet food industry, and Yuanfei Pet in the pet supplies industry .

The third-quarter financial reports of these listed pet companies also show the booming overseas pet economy.

China Pet Foods : The company mainly sells more than ten product lines of pet food, totaling more than 1,000 categories. In the first half of this year, the company's overseas sales revenue accounted for 75.88% of its main business revenue . Its products were sold to the United States, the European Union, Japan and other regions . In the first three quarters , its revenue reached 2.44 billion yuan , up 21.38% from the same period last year , and its net profit reached 110 million yuan , up 24.99% from the same period last year .

Pety Holdings : Focusing on pet chewing foods such as chewing gum, nutritious pet meat snacks, pet dry food, pet wet food and other pet foods, its revenue in the first three quarters reached 1.35 billion yuan , an increase of 48.01% over the same period last year , and its net profit reached 160 million yuan, an increase of 100.68% over the same period; of which the revenue in the third quarter alone increased by 149.49% , and the net profit increased by 391.48% .

Yiyi Holdings : In the first half of this year, its revenue from pet mats, pet diapers and other disposable pet hygiene care products reached 700 million yuan, most of which came from overseas markets.

Lusi Shares : In the first half of this year, its overseas market revenue accounted for 73.33% of the total revenue . The revenue in the first three quarters reached 370 million yuan, an increase of 14.12% over the same period last year , and the net profit was 28.73 million yuan, an increase of 30.5% .

Not only the above companies, Tianyuan Pet and Guaibao Pet have also passed the review of the Shenzhen Stock Exchange and are rushing to go public.

In addition, according to incomplete statistics, at least five IPOs of pet businesses are accelerating this year , including Fubei Pet , Shuaike Pet , etc.

While industry giants are conducting IPOs one after another, new challengers are also constantly joining the market. As we all know, if a certain industry sees a large number of IPOs , it generally means that the industry has entered a period of rapid expansion and development .

Statistics show that the number and growth rate of registered pet companies in China have shown a rapid upward trend from 2014 to 2021. Among them, more than 800,000 new pet companies were registered in 2021, a year-on-year increase of 181%.

Tianyancha data shows that there were 34 publicly disclosed investment and financing cases in the pet sector from January to September this year, mainly concentrated in the fields of pet medical care, pet food, pet cleaning and beauty, and pet supplies.

Even Zhiou Technology, a big seller of furniture and home products , and Zhejiang Zhengte, a furniture manufacturer, each have their own pet brands and products , which shows how popular this track is.

Market value: $ 350 billion, “pet economy” growth accelerates

In recent years, with the growing consumption enthusiasm of pet owners, the pet economy has heated up and its growth rate has become faster and faster.

According to a report by Common Thread, the global pet market has grown from US$245 billion in 2021 to US$261 billion in 2022, and is expected to reach US$350 billion in 2027 at a compound annual growth rate of 6.1% .

Statista reports that online shopping channels for pet supplies currently have the highest growth rate, and are expected to increase from US$93.8 billion to US$164.4 billion from 2021 to 2026 , a growth rate of 43% in five years .

In the United States, sales of the pet products industry reached US$123.6 billion in 2021 , a year-on-year increase of 13.5%, far exceeding market expectations . Pet food alone reached US$50 billion.

Taking the pet food market as an example, data from Euromonitor shows that the average annual growth rate of the global pet food market has been 5.5% over the past 10 years. Pet food consumption accounts for as much as 70% of the overall pet market, making it the largest segment of the pet industry.

At present, the consumption of pet food is mainly concentrated in developed countries and regions such as the United States, Europe, and Japan, and the markets in these regions are monopolized by internationally renowned pet food companies.

Most of China's pet companies rely on OEM and ODM models for overseas sales, commonly known as "OEM" and "OEM", and their own brand business is weak. However, China Pet Foods and Yuanfei Pet have already begun to focus on the construction of their own brands.

The gradual heating up of development in this field also means that the competitive environment will become more intense, and along with it comes the serious problem of product homogeneity . Therefore, small profits but quick turnover has become the choice of most companies . However, constrained by the impact of the epidemic and rising raw material costs , the gross profit margins of most pet companies have declined.

At present, all overseas companies, including those in the pet business, are still facing risks such as sluggish global consumption, changes in the international trade environment, intensified market competition, exchange rate fluctuations, and changing epidemics.

Although risks from all aspects are increasing, "pleasing pets and pleasing oneself" has become a deep consumer demand, and future demand in the pet market will continue to increase.

Third quarter

net income

Hundreds of millions