Core Viewpoint - Tianyuan Pet is facing a significant decline in net profit despite revenue growth, highlighting challenges in the pet industry and the company's strategic transition [1][7]. Group 1: Company Performance - Tianyuan Pet's revenue has increased from 18.87 billion yuan in 2022 to a projected 27.64 billion yuan in 2024, representing a growth of 35.69% [3][7]. - However, net profit has drastically decreased from 1.29 billion yuan in 2022 to 459.6 million yuan in 2024, a decline of 64% [7]. - The company's sales gross margin has dropped from 20.05% in 2022 to an estimated 15.98% in 2024, while the net profit margin has fallen from 6.85% to 1.32% during the same period [5][7]. Group 2: Acquisition of Taotong Technology - Tianyuan Pet plans to acquire 89.7145% of Taotong Technology for 688 million yuan, with the total valuation of Taotong at 777 million yuan, reflecting a 32.78% premium over its net asset value [8][9]. - Taotong Technology is a key player in the fast-moving consumer goods and pet food e-commerce sector, which could help Tianyuan Pet enhance its online presence and competitiveness [9]. - The acquisition comes with risks, including the pressure of performance commitments, as Taotong is expected to achieve net profits of 70 million yuan, 75 million yuan, and 80 million yuan from 2025 to 2027 [9].