Since 2017, a number of pet concept companies have successively listed on A-shares, with outstanding market performance and continued release of profitability. Since the epidemic, the emotional value of pets has become even more prominent. The domestic pet economic market has recovered rapidly, and the growth rate of overseas markets has even exceeded the pre-epidemic level. Against this background, Hangzhou Tianyuan Pet Products Co., Ltd. started subscription today and will soon be listed on the GEM, ushering in new members in the core track of the pet industry.

A pioneer in the pet industry, providing one-stop services for pets’ food, clothing, housing and transportation

As companion animals raised by families, pets are generally regarded as family members, and their daily needs are closely related to their breeders. At the same time, a wide range of pet industry chains have been derived from life, food, medical care, beauty and even funeral. Founded in 2003, Tianyuan Pet mainly focuses on the design, development, production and sales of pet products, as well as pet food sales.

In terms of pet supplies, Tianyuan Pet products cover It has more than 5,000 multi-series and full-category pet products including pet nest mats, cat climbing frames, pet food, pet toys, pet clothing, and electronic supplies. In terms of pet food, the company authorizes the sales of Desire, Aiken, etc. through cross-border imports and other methods. We offer well-known international and domestic pet food brands such as Na, Mars, Nestlé, and McFoody, as well as New Food Generation’s own brand products, which are mainly staple food products for cats and dogs.

Tianyuan Pets not only provides food, clothing, housing and transportation for pets, but also conducts innovative development around the various needs of pets and owners, launching electronic pet products with automated and intelligent functions (such as automatic feeders , electronic drinking fountains, etc.), and creatively developed a variety of new products that combine pets, such as pet cabinets, pet side tables, pet shoe stools, etc., to meet the requirements of pet-raising families to interact with pets, save space, and have multiple uses in one device , consumer demand for unified style.

With the vigorous development of the pet market in recent years, Tianyuan Pet’s overall performance has achieved good development. According to the prospectus, from 2019 to June 2022, the company achieved operating income of 1.049 billion yuan, 1.450 billion yuan, 1.854 billion yuan and 864 million yuan respectively. During the same period, the net profit after deducting non-attributed profits to the parent company was 87.1744 million yuan, 100.3292 million yuan, 96.2866 million yuan and 47.3114 million yuan, which have always maintained a stable growth trend and showed good growth potential.

At the same time, as a one-stop service provider of pet products that has been deeply involved in the industry for nearly two decades, Tianyuan Pets has also been widely recognized by customers and the industry, and its products have successfully entered international pet markets such as the United States, the European Union, Australia, and Japan. Market, we have formed long-term and good cooperative relationships with large supermarket chains such as Walmart, Kmart AUS, TRS, Birgma, and KOHNAN in the United States, internationally renowned e-commerce companies such as Amazon and Chewy, and large pet supplies chain enterprises such as Fressnapf and Petco.

Since 2009, Tianyuan Pets has been awarded the "Certified Supplier" certificate by China Manufacturing Network and the "Golden Product Sincere Enterprise" certificate by Alibaba for many times. In 2011, it was awarded by China Entry-Exit Inspection and Quarantine Association The Pet Food Products Inspection and Quarantine Branch was awarded the "Excellent Enterprise in China's Pet Industry" and the "Industry Leadership Award" by the Zhejiang Pet Products Industry Association in 2018.

The supply chain system is reliable and efficient, with more than 2,000 new products launched every year

China’s pet industry started late and did not take shape until the 1990s. In comparison, developed countries such as Europe and the United States are more mature and have formed some large-scale pet specialty stores, chain supermarkets and other pet product operating companies with their own sales channels and product brands.

Therefore, OEM and export orientation have become the two basic characteristics of domestic pet companies, but Tianyuan Pet is not a simple OEM processing.

The company has a design and development team with strong design capabilities and fast market response. It launches more than 2,000 new product catalogs every year. At the same time, as it faces the global pet products market, the company's product center focuses on targeted product development based on the cultural customs, lifestyles and pet types of different countries. While fully considering the habits and behavioral characteristics of various pets, it also pays attention to the owners' needs. Shopping preferences, in order to adapt to and promote customers' one-stop shopping of multiple categories of pet products by continuously strengthening the development of products with full categories, styles, and new creativity.

In the production and supply chain, in order to achieve effective supply of many categories of pet products, Tianyuan Pets has adopted a product organization method that combines independent production and outsourced production, providing two key categories: nest mats and climbing frames. "Large-scale products" have established their own production lines; for other products, we make full use of the supporting resources for the production of light industrial products in the region, adopt a production model based on outsourced processing, give full play to the comparative advantages of the division of labor in the industrial chain, and focus operating resources on product development, design, and supply. High value-added business links such as chain management and customer development and maintenance.

On the whole, although Tianyuan Pets also participated in product development, design and part of the production process, it did not focus or position itself on the production and processing functions of the products. The company broke through the traditional ODM/OEM model and realized The integration of traditional light industry processing supporting cooperation resources and the company's new operating formats. In view of the characteristics of numerous categories, diverse styles and low standardization of pet products, an efficient and reliable multi-category product supply chain management system has been formed to meet customers' one-stop, multi-frequency purchasing needs and further strengthen the company's market competitiveness.

Overseas markets are enduring, and the domestic “it economy” is at its peak

In the 1980s, cats and puppies began to be used as prototypes for animation creation, riding on the vigorous development of the animation industry Dongfeng, the number of cats and dogs in Japan continues to rise, driving the development of the pet industry. The pet industry in Europe and the United States has experienced nearly a century of development, and the market space is still growing.

According to Euromonitor, the retail scale of the global pet goods market (excluding services) in 2021 will be US$159.6 billion, of which the United States is the largest and most mature pet consumer market in the world. According to data from the American Pet Products Association (APPA), about 67% of households in the United States own at least one pet. According to a Tianfeng Securities research report, "Since the epidemic, the United States has added approximately 9 million pet dogs and 5 million pet cats, with increases of 9% and 7% respectively. The U.S. pet market will reach US$123.6 billion in 2021. The year-on-year growth rate is nearly 20%, which is an increase of 12 percentage points compared with the year-on-year growth rate in 2019, far exceeding that before the epidemic, achieving high growth under a high base."

Europe is the second largest pet consumer market in the world. According to data released by FEDIAF (European Pet Food Industry Federation), pet consumption in the European market will reach 51.2 billion euros in 2021, of which pet supplies will be 9.5 billion euros. .

Facing the long-lasting overseas market, Tianyuan Pets has participated in large-scale professional or comprehensive exhibitions at home and abroad such as the Nuremberg Pet Show in Germany, the Orlando Pet Expo in the United States, the Asian Pet Expo, the China International Pet Products Exhibition and the Canton Fair all year round. , and regularly organizes market research to promote the company's products and contact new and old customers while keeping abreast of the latest development trends and market frontiers of the global pet industry.

In addition, Tianyuan Pets has also established subsidiaries in the United States, Japan, Germany, the United Kingdom, Cambodia and other places to ensure smooth and timely communication with global customers.

On the other hand, China’s pet industry is currently in a stage of rapid development. With the improvement of consumers' economic level and the change of ideological concepts, people's instrumental positioning of pets as "cats catching mice, dogs protecting homes" has further derived companionship needs and emotional value. The size of my country's pet market will reach 249 billion yuan in 2021, achieving a year-on-year growth of 20.4%. The CAGR in the past three years has reached 13.4%, which is higher than that of the United States and Japan.

However, the current penetration rate of pet-raising households (dogs and cats) in urban areas in my country is still far lower than that in mature markets such as the United States. In the future, as my country’s per capita income increases and the number of pet owners increases, the domestic pet industry will have Vast market space and market potential.

Tianyuan Pets is also constantly expanding the domestic market. In response to the current general trend of domestic e-commerce development, the company has formulated a sales model that emphasizes both online and offline, and has added pet products to the original pet products. food business in order to better develop domestic sales channels and increase customer stickiness.

Currently, the products sold by Tianyuan Pets in the domestic market are mainly its own brands. At the same time, the company also uses its own channel advantages to cooperate with well-known overseas brand companies to sell related products as agents. For example, in June 2022, the company will expand Obtaining the domestic sales agency sales rights for the Italian high-end pet care brand "yuup" will help the company further enrich its domestic pet product line.

This time Tianyuan Pets has entered the capital market. It is planned to raise 589.5844 million yuan of funds, which will not only be used for reasonable expansion of production to meet the huge market demand, but also for e-commerce and information construction, aiming to expand online e-commerce business, further increase customer coverage, and then expand the company's sales scale .

In general, Tianyuan Pets, as an early domestic enterprise that entered the pet industry, has certain first-mover advantages and has accumulated high-quality customers from many places around the world; at the same time, the company is located in the Yangtze River Delta region. The advantages allow the company to develop a product organization method that combines independent production with outsourced production, reducing costs and improving efficiency, meeting customers' one-stop, multi-frequency purchasing needs.

Facing the future situation where overseas markets and domestic markets will advance together, the company is also actively integrating the industrial chain and better grasping the market by strengthening localized services of overseas branches and improving domestic business channels. opportunities, and continue to advance towards becoming the world's leading provider of full-category pet products.