The single product sold for 300 million, and another big seller is about to be launched!

As a popular product in the cross-border e-commerce market, pet products are still showing a growth trend this year. Many cross-border sellers have achieved remarkable results by riding the wave of the "cute pet economy". A major pet product manufacturer said that its net profit increased by more than 70% in the first half of the year, and some pet sellers are preparing for IPO!

Traction tools sold 300 million in one year! Yuanfei Pets sprints for IPO

Taking advantage of the hot capital market, Wenzhou pet products giant Yuanfei Pet is also preparing to go public. It has successfully passed the IPO on the Shenzhen Main Board and is about to be listed on the A-share market. The company's total share capital before this issuance is 102.25 million shares, and it plans to issue no more than 34.1 million shares. The total share capital after the issuance will not exceed 136.35 million shares.

It is understood that Yuanfei Pet intends to invest the funds raised this time in capacity expansion projects with an annual output of 3,000 tons of chewing gum and 25 million pet traction devices; Yuanfei Pet's production technology and intelligent warehousing technology transformation project; R&D center construction project; marketing operation center construction project; and to supplement working capital.

Since its establishment in 2004, Yuanfei Pet has been focusing on the research and development, production and sales of pet products. Its products mainly include pet snacks, pet traction equipment, pet injection molded toys and other series of products.

1. Pet traction equipment : mainly used for traction control of pets when traveling outdoors, to meet the travel needs and outdoor protection needs of pets. The main products include traction ropes, chest harnesses, collars and accessories, etc. The main materials are nylon, genuine leather, PU leather, etc.

2. Pet snacks : including knotted bones, pressed bones, tooth-cleaning bones, etc., mainly made of natural rawhide, bleached rawhide, foamed rawhide, recycled leather, chicken and pig skin, etc. They are mainly used to maintain the oral health of pets, supplement pet nutrients, and help owners deepen their feelings with their pets and enhance the interaction with their pets.

3. Pet injection molding toys : used to improve the life of pets, improve the quality of life of pets and increase the interaction between pet lovers and pets. They are mainly made of environmentally friendly and bite-resistant materials such as TPR, TPE and nylon, with novel appearance design.

As the pet products industry has many categories and changes rapidly, it is particularly important for pet companies to constantly innovate. In order to consolidate and improve its competitiveness in the field of pet products, Yuanfei Pets is constantly designing and developing new products. Currently, there are 12 products under development , such as environmentally friendly dog ​​chews with accelerated feces degradation function, wear-resistant fun dog chews, transparent fruit plastic dog chews, high-temperature resistant lotus root slice dog chews, high-strength environmentally friendly traction ropes, etc.

Yuanfei Pet mainly sells its products overseas. It has successfully entered the United States, the European Union, Japan and other countries and regions, and has accumulated a number of high-quality downstream customers, such as American pet product retail giants such as Petco and PetSmart, well-known European pet product chain supermarket Pets at Home, and comprehensive retailers such as Walmart and Target. Among them, PetSmart is Yuanfei's largest customer, with sales of 118 million yuan, and Walmart ranks second with sales of 93.54 million yuan.

As for the e-commerce business of its own brand , it is mainly carried out by its subsidiary American BA. Its main products sold are pet traction equipment, which are covered on e-commerce platforms such as Amazon and Shopify . It is currently in the development stage.

In the first half of 2018-2021, Yuanfei Pet achieved operating income of 435 million yuan, 515 million yuan, 608 million yuan, and 479 million yuan, respectively; its net profit was 62.8214 million yuan, 54.9115 million yuan, 83.1980 million yuan, and 56.8896 million yuan, respectively.

Looking at the products in detail, pet traction equipment contributed the largest operating income for Yuanfei Pet, which was 352 million yuan, with a gross profit margin of 34.89%. 26.18 million pieces were sold in 2020 ; followed by pet snacks, with operating income of 223 million yuan; it is worth noting that the proportion of pet injection molded toys and other pet products is less than 3%, but the gross profit margin of pet injection molded toys has reached 40.22%.

In terms of supply chain layout, Yuanfei Pet has placed its production and processing bases in Pingyang County, Zhejiang Province and Cambodia. Among them, Pingyang County is the main leather processing base in China. It not only has abundant production materials, but also links upstream and downstream industries. It is known as the "China Pet Products Export Base". The reason for choosing Cambodia is convenient transportation, abundant labor force and low cost.

Companies in the industry are rushing to go public! The pet economy is booming

The epidemic has not only driven the rise of the global online consumer market, but also driven strong demand for more sub-categories, especially the pet economy. From 2010 to 2020, the global pet industry market size (excluding the pet service market) grew from US$97.387 billion to US$142.132 billion, with a compound annual growth rate of 3.85%.

The United States, as the world's largest pet-raising and consumption country, accounts for 40% of the global pet economy. In 2020, pet consumption expenditure in the United States reached $103.6 billion, and its penetration rate in American households was as high as 68%, and most of the pets raised were cats and dogs.

In Europe, pet culture is even more prevalent, and pets are allowed to enter restaurants, trucks, etc. In terms of per capita pet consumption, the UK, France, and Germany are all at the top, especially the UK , where each person spends more than 5.4 billion pounds on pet products each year . In addition, the pet economy in Japan, South Korea, and Southeast Asia is also becoming increasingly hot.

The global pet economy is booming, and many companies in the industry are making huge profits. Some major pet products manufacturers have stated that their net profit increased by more than 70% in the first half of the year. This is also encouraging one cross-border pet company after another to go public.

China Pet Foods : Founded in 2002, it was listed on the Shenzhen Stock Exchange in 2017. Its main products are pet snacks, canned pet food and dry pet food, which are sold to Japan, the United States, Canada, Germany and other countries. In 2020, its operating income was 2.233 billion yuan.

Pety Shares : Founded in 2002 and listed on the Shenzhen Stock Exchange in 2017, its main products are animal hide chews, plant chews, pet snacks, etc. Its products are mainly sold to countries and regions such as the United States, the European Union, and Canada. In 2020, its operating income reached 1.34 billion yuan .

Lusi Pet : Founded in 2011, it is a pet food manufacturer that mainly focuses on exports and supplemented by domestic sales. Its main products include dried meat products, pet canned food, pet biscuits, pet dental bones, etc. It was listed on the Beijing Stock Exchange on January 14, 2022.

Tianyuan Pet : Founded in 2003, its main products include pet beds, cat climbing frames, pet toys, pet clothing, electronic smart pet products, pet food and other series of pet products, which are mainly sold to the United States, Germany, Australia, Japan and other countries. In 2020, its operating income reached 1.45 billion yuan. It passed the GEM review last year and has submitted an application for registration to the China Securities Regulatory Commission.

There is no doubt that the stories of successful IPOs are inspiring countless hardworking small and medium-sized sellers. For sellers, the pet economy is a large category that can be further subdivided into categories. Sellers can also do research and development and product selection based on the countries and regions they choose to cultivate and the habits of consumers. Of course, they can also refer to the product layout of the above-mentioned companies to quickly join the cross-border bonus track of global pet products.

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