OEM slowdown, brand not established, Petty Co. enters transitional period under pressure
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In 2025, pet food company Petty Co., Ltd. faces the dual pressure of demand fluctuations in its core overseas markets and internal investments for strategic transformation.
The company achieved annual operating revenue of 1.449 billion yuan, a year-on-year decline of 12.67%; net profit attributable to shareholders of the listed company was 116 million yuan, down 36.52% year-on-year.
The company has long relied on the European and American markets, undertaking brand owner orders under the ODM model. However, the destocking pace of U.S. clients, coupled with uncertainty in tariff policies, has made order demand more cautious and become the main reason for the pressure on revenue.
However, while under revenue pressure, the company’s gross profit margin has shown certain resilience. In 2025, the overall gross profit margin of main businesses reached 31.86%, an increase of 8.51 percentage points year-on-year.
Behind this, on the one hand, is improved operational efficiency of overseas factories in Vietnam, Cambodia, etc., leading to optimized production costs; on the other hand, the company adjusted its product structure and increased the proportion of high value-added products, partially offsetting the negative impact of order contraction.
The decline on the profit side mainly reflects the pressure of investment during the strategic transformation period.
With the New Zealand staple food production line entering the commercial operation stage, depreciation and amortization increased significantly, driving a year-on-year growth of 17.4% in administrative expenses. The domestic proprietary brands have continued to ramp up, with R&D expenses increasing by 13.9% year-on-year, further amplifying short-term performance pressure.
From a business layout perspective, the company’s "one core, two wings" strategy is still advancing steadily.
Overseas ODM business is upgrading from single manufacturing to a comprehensive service capability of "R&D + supply chain + manufacturing," and the flexible deployment of overseas bases in Vietnam and Cambodia helps address changes in the trade environment.
In terms of domestic proprietary brands, the "Joy Banquet" brand maintains a certain presence on mainstream e-commerce platforms such as Tmall and JD.com, achieving double-digit growth during both the "618" and "Double Eleven" periods in 2025. The New Zealand staple food production line products have completed import registration, which is expected to provide product support for subsequent domestic market expansion.
The company’s annual report also truthfully discloses several risks it currently faces.
A high proportion of revenue from core overseas clients means that any change in clients' procurement strategies will directly impact the company’s performance; fluctuations in raw material prices, exchange rates, as well as policy and legal risks in global operations are all potential variables affecting business stability.
In the first quarter of 2026, the company's revenue growth rate turned positive at 6.66%, with revenue reaching 351 million yuan. However, exchange rate factors once again became a key variable eroding profits, with net profit plunging by 63.7%.
In addition, continuous investment is needed for building proprietary brands and promoting new products, and market acceptance remains uncertain.
Overall, Petty Co., Ltd. is currently climbing the transformation curve from scale-driven to value-driven growth.
The core overseas ODM business remains resilient, and the domestic proprietary brands and staple food business represent future incremental opportunities, but an effective relay between the two has not yet been formed. Uncertainties in the external trade environment and the rigidity of internal transformation investments will continue to test the company’s operational flexibility and strategic determination for some time.
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