Another cross-border blockbuster successfully listed!

In recent years, the global pet economy has been booming, and many companies in the industry have made huge profits. This is also encouraging one cross-border pet company after another to go public.

With annual revenue of nearly 3.4 billion yuan, Guaibao Pet successfully IPOs !

On August 7, Guaibao Pet Food Group Co., Ltd. ( hereinafter referred to as "Guaibao Pet" ) successfully landed on the Shenzhen Stock Exchange's ChiNext.

The road for companies to go public through IPO is a daunting one , and the same is true for Guaibao Pets .

Prior to this, Guaibao Pet had proposed listing plans twice.

The first time was in September 2020 , when Guaibao Pet signed a listing guidance agreement with CICC , but it was later terminated due to its "adjustment of the listing plan."

The second time was in July 2021, when Guaibao Pet restarted its listing guidance , with Zhongtai Securities as the guidance institution, but both versions of the registration draft failed to pass the registration.

On December 30, 2021, Guaibao Pet applied for its IPO for the first time and disclosed its prospectus .

On January 22, 2022, the review status of Guaibao Pet's application for IPO on the Growth Enterprise Market was changed to "Inquiry Received" .

In June 2022, Guaibao updated its prospectus and responded to the "Second Round Review Inquiry Letter" issued by the Shenzhen Stock Exchange .

In July 2022, Guaibao Pet’s IPO was approved and it successfully obtained the A-share pass .

In December 2022, Guaibao Pet officially submitted its registration application, simultaneously submitted the prospectus (registration draft), and disclosed the performance report for the 2022 fiscal year .

In March 2023, Guaibao Pet updated its prospectus, disclosed its operating data for fiscal year 2022 , and released its operating performance forecast for Q1 of 2023 .

In June 2023 , Guaibao Pet received official approval .

On July 21, 2023 , according to the information disclosed by the Shenzhen Stock Exchange, the review status of Guaibao Pet was changed to "Registration Effective" .

On August 7, 2023 , Guaibao Pet (301498.SZ) opened subscription, with an issue price of 39.99 yuan per share, a subscription limit of 7,500 shares, a price-earnings ratio of 61.28 times, and belongs to the Shenzhen Stock Exchange's ChiNext. The company issued a total of 40 million shares, of which 7.6 million were issued online.

In this IPO, Guaibao Pet plans to raise 600 million yuan, of which 367 million yuan will be used for the expansion and construction project of the pet food production base, 71.9105 million yuan will be used for the smart warehousing upgrade project, 30.6048 million yuan will be used for the R&D center upgrade project, 25.1126 million yuan will be used for information technology upgrade construction projects, and 105 million yuan will be used to supplement working capital.

According to public information, Guaibao Pet was established in June 2006 and is located in Liaocheng, Shandong. It is engaged in the research and development, production and sales of pet food, mainly engaged in a variety of pet food for dogs and cats. Its main products include a series of staple food with scientific nutritional formulas, a series of snacks with livestock and poultry meat, fish and other main ingredients, and a series of health products containing freeze-dried lecithin, calcium lactate and other functional ingredients.

Since its establishment, Guaibao Pet has been engaged in overseas pet food processing. Its products are sold to more than 30 countries and regions including Europe, America, Japan and South Korea. Its main customers include large global retailers such as Walmart, Smucker, and Pinpu, as well as well-known pet brand operators.

In addition to OEM pet food processing, Guaibao Pet also has its own brand.

In 2013 , Guaibao Pet created its own brand "Mai Fu Di".

As a full-category pet food brand, Biofood covers pet dry food, snacks and wet food, with over 2,000 SKUs and a very rich product line . Biofood is widely welcomed by consumers for its high cost-effectiveness .

"Myfoodie" won the first place in the 2021-2022 Tmall TOP Brand Power List (pets) and the first place in the MAT2021 Tmall dog and cat food brand sales list, and also became the most popular pet food brand among Generation Z in MAT2021.

In 2022, the revenue from Guaibao’s three main businesses of snacks, staple foods, and health products reached 3.398 billion yuan, and its own brand "Mai Fu Di" contributed more than half of the performance .

From 2020 to 2022, the proportion of Guaibao's own-brand revenue was 49.55%, 51.95% and 60.55% respectively , maintaining a steady growth trend.

It is worth mentioning that in addition to developing its own brands, Guaibao Pet acquired the American pet brand Waggin' Train in 2021 and became the agent of New Zealand brands K9 Natural and Feline Natural.

In the past three years, Guaibao Pet 's revenue and net profit have grown steadily.

From 2020 to 2022, the operating income of Guaibao Pet was approximately RMB 2.013 billion, RMB 2.575 billion, and RMB 3.398 billion, respectively, and the company's net profit was approximately RMB 111 million, RMB 142 million, and RMB 266 million, respectively.

In the first quarter of 2023 , Guaibao Pet achieved operating income of 905 million yuan, a year-on-year increase of 24.54%, and net profit attributable to parent company shareholders of 84.984 million yuan, a year-on-year increase of 93.69%.

In the first half of this year, Guaibao Pet expects to achieve operating income of 1.975 billion yuan to 2.055 billion yuan, a year-on-year increase of 17.07% to 21.81%, and a net profit of 160 million yuan to 180 million yuan, a year-on-year increase of 17.77% to 32.49%.

A-share pet sector enters the era of seven heroes

In recent years, the global pet market has experienced rapid development.

According to the latest survey data released by Bloomberg BI, the current market value of the global pet industry is US$320 billion, and it is expected that this figure will reach US$493 billion by 2030, a significant increase of 54%.

With the rapid growth of the pet economy , companies in the industry have been listed one after another , and the A-share pet sector has entered the era of seven heroes .

In addition to Guaibao Pet ( A21698.SZ) , it also includes: Petco Holdings (300673.SZ), China Pet Foods (002891.SZ), Yiyi Holdings (001206.SZ), Lus Holdings (832419.BJ), Yuanfei Pet (001222.SZ), and Tianyuan Pet (301335.SZ) .

Pety Shares: Founded in 2002, it was 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 2022 , its operating income reached 1.732 billion yuan.

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 2022 , its operating income was 3.248 billion yuan.

Yiyi Shares : Founded in 1998, its main business is pet products, supplemented by adult care products. It develops and produces pet pads, diapers, sanitary napkins, cleaning bags and other products. It was officially listed on the Shenzhen Stock Exchange Main Board on May 18, 2021. Yiyi Shares' operating income in 2022 was 1.516 billion yuan .

Lusi Pet: Founded in 2011, it is a pet food manufacturer that mainly exports and supplements 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. In 2022 , Lusi’s total revenue was 549 million yuan .

Yuanfei Pet: Founded in 2004, it focuses on the research and development, production and sales of pet products and pet snacks. Its main products include pet traction equipment, pet injection toys and other pet products, dog chews and other pet snacks. Yuanfei Pet was listed on the main board of the Shenzhen Stock Exchange in August 2022. In 2022, Yuanfei Pet's operating income was 954 million yuan .

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.   On November 18, 2022 , Tianyuan Pet was listed on the Shenzhen Stock Exchange . In 2022 , its operating income reached 1.887 billion yuan.

Facing the heat of the capital market, the market competition in the pet track has become more intense and the brand influence has become greater. How each company in the track can remain invincible in the fierce market competition has become an important issue that they must face.

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