With annual revenue exceeding 1 billion, the “first dog leash stock” was successfully listed!

With the development of the economic level and the increase in the number of people keeping pets during the epidemic, the "pet economy" has begun to rise and the market size of the pet industry has also gradually expanded.

With the industry's prospects looking good, the pet industry has seen a surge in listings, including China Pet Foods and Petco, which were listed earlier, and Tianyuan Pet and Guaibao Pet , which are waiting in line for listing. Recently, news of listings in this sector has been announced.

With an annual compound growth rate of 44.09%, Yuanfei Pet is gaining momentum!

On August 2, Yuanfei Pet issued an announcement stating that its application for an initial public offering has been approved by the China Securities Regulatory Commission, and the shares issued this time are intended to be listed on the Shenzhen Stock Exchange.

After consultation between the issuer and the sponsor, it was determined that 34.1 million new shares will be issued this time , all of which will be publicly issued new shares, and the issuer's shareholders will not transfer old shares. This issuance will be implemented on August 3, 2022 (T-day) through the Shenzhen Stock Exchange trading system and the offline issuance electronic platform respectively .

Yuanfei Pet is a company focusing on the research, development, production and sales of pet supplies and pet food . Its main products include pet traction equipment, pet injection molded toys, pet snacks and other products .

Among them, pet traction equipment accounts for the largest proportion of Yuanfei Pet's main business . Pet traction equipment is mainly used for traction control when pets go out. The most common one is the traction rope when walking the dog. Therefore, Yuanfei Pet is also called "the first dog leash stock" by some industry insiders .

It is this common "dog leash" in life that supports Yuanfei Pet's IPO journey. With the growth of its main business income, Yuanfei Pet's revenue has also increased year by year. From 2019 to 2021 , its operating income was 515 million yuan , 608 million yuan and 1.069 billion yuan respectively , with an average annual compound growth rate of 44.09%.

Pet traction equipment, as a core product, had an operating income of 613 million yuan in 2021 , accounting for 57.6% of the main business income. Pet snacks had a revenue of 353 million yuan, accounting for 33.14% of the main business income. In addition, pet injection toys and other pet products accounted for 1.03% and 8.20% respectively.

Yuanfei Pet's products are mainly exported . From 2019 to 2021, the proportion of Yuanfei Pet's export revenue to its main business revenue was 94.91%, 95.50% and 96.76% respectively . The sales market covers many countries and regions with developed pet economies, such as the United States, Europe, and Japan .

Among them, the United States is currently the world's largest pet consumption market and one of Yuanfei Pet's most important overseas markets. From 2019 to 2021, Yuanfei Pet's product sales to the United States were 290 million yuan , 408 million yuan and 783 million yuan , respectively, accounting for 56.36%, 67.02% and 73.28% of its operating income, respectively .

With its continuously improving innovation capabilities and high-quality products, Yuanfei Pet has accumulated high-quality customer resources. Currently , Yuanfei Pet has established long-term and stable cooperative relationships with internationally renowned professional pet product chain stores and large chain retailers such as Petco , PetSmart , Pets at Home , Walmart, and Target .

First quarter revenue was 300 million, and net profit increased by nearly 60%

In the prospectus, Yuanfei Pet also disclosed the latest revenue data.

From January to March 2022, Yuanfei Pet achieved operating income of 350 million yuan, a year-on-year increase of 40.36% ; net profit of 63.541 million yuan, a year-on-year increase of 58.79% ; net profit attributable to parent company shareholders was 58.1655 million yuan, a year-on-year increase of 69.13%.

Yuanfei Pets said that the main reasons for the revenue growth in the first quarter include:

(1) According to industry data released by the American Pet Products Association ( APPA) on April 19, pet food sales in 2021 increased by 13.6% year-on-year; sales of pet supplies, live animals and over-the-counter (OTC) drugs increased by 17.8% year-on-year, and are expected to continue to grow in 2022. The good development of the downstream market provides a market foundation for the company's revenue growth in January-March 2022 ;

(2) The Company continues to consolidate its market competitive advantages with reliable product quality, good design capabilities and global production capacity layout. Major customers have increased their purchases of the Company's products, which is the direct reason for the increase in revenue in January-March 2022.

Based on the current operating conditions and market environment, Yuanfei Pet has also made a good forecast for the first half of the year. From January to June 2022, Yuanfei Pet expects to achieve operating income of 575 million to 646 million yuan, an increase of about 20-35% over the same period last year; and it is expected to achieve a net profit of 85 million to 95 million yuan, an increase of about 31-47% over the same period last year.

Plans to invest 410 million yuan to expand production

Thanks to the good market prospects, while achieving rapid revenue growth, Yuanfei Pet is also planning to use the raised funds to increase investment in capacity expansion, technological transformation, research and development, and marketing to improve production efficiency, expand production scale, and explore the global market.

It is reported that Yuanfei Pet plans to use the funds raised this time to invest 410 million yuan, and plans to invest in five projects including "increasing the annual production capacity of 3,000 tons of chewing gum and 25 million pet traction devices", "technical transformation of Yuanfei Pet's production technology and intelligent warehousing", "construction of R&D center", "construction of marketing operation center" and "supplementation of working capital" .

Among them, the "annual production capacity expansion project of 3,000 tons of chewing gum and 25 million pet traction devices" is the focus of this fundraising and investment project.

Affected by the need for companionship during the epidemic, the number of people keeping pets has increased, and the demand for pet products has also continued to expand, with good market development prospects. According to the American Pet Products Association ( APPA), the size of the pet market in developed countries in Europe and the United States will grow steadily at a rate of about 5% in the future.

Yuanfei Pet 's production expansion project is driven by the growth of global customer demand , which will continue to drive the rapid growth of Yuanfei Pet's sales. Yuanfei Pet said that it will effectively absorb the new capacity of the fundraising project by deeply tapping into existing customer resources and expanding sales to existing well-known customers .

The main purpose of investing in the "Yuanfei Pet Production Technology and Intelligent Warehousing Technology Transformation Project" is to optimize the production process of dog chews and pet leashes , and to build an intelligent warehousing and logistics system . This will further enhance the market competitiveness and market share of Yuanfei Pet , and lay a solid foundation for meeting the growing market order demand.

In addition, R&D and marketing are the key points for a company to achieve long-term development. Yuanfei Pet's future R&D direction will focus on the main products to expand and optimize the existing product structure and improve the market competitiveness of products; and the investment in the marketing operation center can greatly enhance Yuanfei Pet's brand influence at home and abroad and help the business expansion process.

Through this issuance and investment, Yuanfei Pet's existing product production capacity will be further expanded, and its technical level and product quality are also expected to be improved . In addition, the pet products industry in which it is located is in a booming stage, and Yuanfei Pet's future profit level and development prospects are still very bright .

Listing

Big Sell

Pet Market