The change in revenue of overseas business may have sounded the alarm for enterprises represented by Tianyuan Pet and Petty Shares.
Recently, Tianyuan Pet has released a number of investor relations activity record forms, disclosing the specific information that the company accepts research from a number of institutions and answers relevant research questions.
When talking about the company's business operation, Tian Yuan Pet pointed out that in the first quarter of 2024, Tian Yuan Pet achieved revenue of 504 million yuan, a year-on-year increase of 17.9%; In the same period, the net profit attributable to the parent company was 13.9684 million yuan, a year-on-year increase of 2.8%.
From the perspective of operating income structure, under the business model of paying equal attention to domestic and overseas and synergizing supplies and food, Tian Yuan Pet's various revenues are achieving balanced development:
- From the perspective of domestic and overseas markets, in 2023, Tian Yuan Pet's overseas business will achieve revenue of 1.125 billion yuan, accounting for 55.25% of total revenue, a year-on-year decrease of 5.24 percentage points, while domestic sales will increase by 30.37% year-on-year to 912 million yuan, accounting for an increase of 7.69 percentage points to 44.75%, and the gap between domestic sales and overseas sales will gradually narrow.
- In terms of product line, on the basis of design, development, production and sales of pet products, Tianyuan Pet is also actively expanding its pet food sales business. In 2023, Tian Yuan Pet's revenue in the pet food business segment increased by 34.63% year-on-year to 688 million yuan, which strongly supported the growth of operating income.
In response to the company's channel construction and future development strategy focus, Tian Yuan Pet said:
In terms of overseas market channels and business strategies, based on the early start of the pet industry in developed countries and regions such as Europe and the United States, large chain retailers, professional pet product chain stores and online e-commerce platforms have become the main sales channels of pet products after years of development, occupying the main market share. Tian Yuan Pet mainly enters the international pet market by selling OEM products to the above channels.
For the follow-up development of the international market, Tian Yuan Pet will rely on the comparative advantages of the domestic pet products industry chain and further expand and consolidate the advantages of KA channel customer resources by strengthening the localization services of overseas branches in Europe, America and other places.
At the same time, through the establishment of overseas warehouses in the United States and Europe, the rapid circulation of products abroad is realized, which is conducive to the development of overseas cross-border e-commerce model and the realization of small-scale and multi-frequency supply to various small customers overseas. In order to cope with changes in the international environment, Tian Yuan Pet has also set up production subsidiaries in Cambodia, Vietnam and other places to continue to promote the layout of the international supply chain to reduce product transportation costs and improve product competitiveness.
It is worth mentioning that in terms of international business of supplies, Tian Yuan Pet will also deepen its cooperation with supermarket customers at the same time, focus its resources on professional pet retailer customers, improve the company's brand professionalism in the pet industry by providing professional products, services and support, and open up new incremental markets to achieve more comprehensive market coverage and brand promotion.
In terms of the domestic market, with the rapid development of the pet industry in mainland China in recent years, Tian Yuan Pet has also actively strengthened the expansion of the domestic market:
In terms of business strategy, Tian Yuan Pet has gradually established close cooperative relations with internationally renowned pet food companies such as Champion Company, Nestle, Mars and other internationally renowned pet food companies, and has begun to sell internationally renowned pet food brand products to the domestic market through cross-border imports and general trade channel imports, and then gradually established and consolidated the company's domestic online and offline sales channels.
Tian Yuan Pet also pointed out that it will continue to adhere to the domestic market business strategy of food-driven supplies, adhere to the sales model of paying equal attention to online and offline, and constantly improve the expansion of domestic sales channels. Among them, through the integration of the company's resources, Tianyuan Pet has also created a full-category supply chain platform for pet products represented by "pet hair" and "to small B", in order to promote the establishment and improvement of the company's domestic sales channels while empowering many offline "small B" customers.
On the other hand, Tian Yuan Pet is also promoting the product development and promotion of its own domestic brands in an orderly manner, and has launched a number of independent brands such as "Petstar, Tian Yuan Pet, Pure Sleep, Little Beast Star, and New Food Generation" to adapt to the escalating life needs of consumers.
In view of the company's future development strategy, Tian Yuan Pet also said that it will adhere to the business leading strategy, adhere to the strategic focus, deeply cultivate the strategic main channel of supplies and food, and achieve the strategic goal through the three-force drive model of "trinity, interlocking and interlocking, coordinated and in-depth cultivation" of market-product-organization.
At the same time, we focus on the core market, focus on core customers, and focus on core categories, and take market deepening, category deepening, and organization deep cultivation as the policy, and move towards the first industry position and market share in the subdivided business field. And on the basis of ensuring a reasonable financial contribution for the current period, we will take into account the realization of strategic performance.
In the next five years, Tian Yuan Pet will also accelerate the implementation of the global localization strategy, do a good job in the international regional market in an orderly manner, and do a forward-looking global supply chain layout according to the business plan.
On the whole, the pet industry observes that with the gradual end of the destocking cycle of overseas customers, the orders of large customers have begun to repair, and the major pet companies that focus on export business have also regained their revenue pillars. At the same time, multiple factors such as the increasingly involuted competitive environment of the domestic pet market and the global pet market full of opportunities may also be the underlying logic that makes Tianyuan Pet determined to continue to promote the global localization strategy.
But on the other hand, the change in revenue of overseas business has also sounded the alarm for enterprises represented by Tianyuan Pet and Petty Shares. Therefore, we can see that both have invested heavily in the layout of the pet food business sector and the laying of the domestic pet market in recent years.
The feedback from the market will not lie, and under the two-step and three-in-one strategy, the future development of Tianyuan Pet is also more and more worth looking forward to. As for the key dynamics of Tianyuan Pet in the future, the pet industry observation will continue to pay attention. For those who are interested in this topic, please leave a message in the comment area below to discuss, or add a small editor to communicate on WeChat.