Core Insights - The pet industry continues to experience significant growth, with pet food companies reporting strong performance in the first half of the year, particularly in staple food revenue [1][2] Industry Overview - The domestic pet food market is undergoing a functional and health-oriented upgrade, with industry benefits still ongoing [2][3] - The market for pet food in urban areas is projected to reach 300.2 billion yuan in 2024, reflecting a year-on-year growth of 7.5% [3] Company Performance - Guibao Pet (301498.SZ) reported total revenue of 3.22 billion yuan, a year-on-year increase of 32.72%, and a net profit of 380 million yuan, up 22.6% [2] - Tianyuan Pet (301335.SZ) and Zhongchong Co. (002891.SZ) also achieved double-digit growth in revenue and net profit [2] - The main food business of Guibao Pet saw revenue of 1.88 billion yuan, a remarkable growth of 57.1% [2] - The main food products of Lusi Co. generated revenue of 59.46 million yuan, increasing by 40% [2] - Tianyuan Pet's pet food business revenue reached 670 million yuan, growing by 16.7% [2] - Zhongchong Co. reported main food revenue of 780 million yuan, a significant increase of 85.8% [2] Market Dynamics - The concentration ratio of the pet food market in China is relatively low, with CR5 at 25.4% and CR10 at 32.7%, indicating potential for market consolidation [4] - Marketing expenses for major pet companies have increased significantly, with Guibao Pet at 47.3%, Tianyuan Pet at 48.5%, and Zhongchong Co. at 35.8% [4] - The shift in consumer spending towards preventive care for pets is driving demand for functional pet food products [3][4]