CHINA PET FOODS(SZ:002891) Zhong Guo Zheng Quan Bao·2025-10-13 20:57Core Insights - Zhongchong Co., Ltd. reported a revenue of 1.428 billion yuan for Q3 2025, marking a year-on-year increase of 15.86% [1] - The company achieved a net profit attributable to shareholders of 333 million yuan for the first three quarters, reflecting an 18.21% year-on-year growth [1] Company Overview - Zhongchong Co., Ltd. specializes in the research, production, and sales of pet food, offering over 1,000 varieties including dog and cat food, wet food, snacks, and health products [2] - The company utilizes new media platforms like Douyin and Xiaohongshu, participates in domestic exhibitions, and sponsors large pet events to expand its domestic market presence [2] Market Trends - The pet consumption market in urban areas is growing, driven by rising living standards and increasing emotional companionship needs, leading to a shift from basic survival consumption to quality and personalized consumption [2] - The market concentration in China's pet industry remains low compared to developed countries, with many small and medium-sized enterprises and significant product homogeneity [2] Consumer Behavior - Consumers are increasingly prioritizing brand reputation, product quality, safety, and personalized needs when selecting pet food, leading to a gradual increase in brand concentration within the industry [3] - Companies with strong R&D capabilities, robust supply chains, clear brand positioning, and good market reputation are better positioned to meet high-quality consumer demands [3] Global Expansion Strategy - Zhongchong Co., Ltd. is expanding its global footprint through website promotion, participation in international exhibitions, and advertising, targeting markets in the EU, the US, and Southeast Asia [4] - The company collaborates with local brand distributors in developed markets, utilizing an OEM/ODM model to enter these markets [4] Production Capacity and Supply Chain - The company has established over 22 modern production bases globally, with more than 10 new projects underway, including facilities in the US, Canada, Mexico, New Zealand, and Cambodia [5] - North America is the largest sales market for Zhongchong Co., Ltd., with a collaborative operational structure among its factories in the US, Canada, and Mexico [5] - The completion of new production lines in Canada and Mexico, along with plans for a second factory in the US by 2026, will enhance the company's production capacity and market responsiveness in North America [5]