Core Viewpoint - The chairman of Tianyuan Pet Products Co., Ltd., Xue Yuanchao, faced regulatory action due to his spouse's short-term trading of company stocks, leading to a warning letter from the Zhejiang Securities Regulatory Bureau [1][2] Group 1: Regulatory Action - Xue Yuanchao's spouse, Zhang Zhiwen, engaged in short-term trading by buying 8,400 shares of the company on May 16, 2025, for a total of 231,069 yuan, and selling 2,100 shares on May 19, 2025, for 70,287 yuan [2] - The regulatory body issued a warning letter and required Xue Yuanchao to submit a written report within 10 working days [2] - Xue Yuanchao acknowledged the violation and committed to ensuring that the profits of 12,692.40 yuan from the trading would be returned to the company [2] Group 2: Financial Performance - Tianyuan Pet's 2024 annual report indicated a revenue of 2.764 billion yuan, a year-on-year increase of 35.69%, while the net profit attributable to shareholders was 45.96 million yuan, reflecting a 40.13% decline [3][4] - The company has experienced a continuous decline in net profit for two consecutive years, with a total decrease of 61.67% from its peak of 120 million yuan in 2022, leaving only 38% of its peak profit level [4] Group 3: Strategic Moves - To counteract declining profits, Tianyuan Pet is pursuing acquisitions, including a B2B pet industry platform "Itpin" and a controlling stake in Guangzhou Taotong Technology, which provides e-commerce services for over 40 international brands [4][5] - The company plans to invest 688 million yuan to acquire 89.7145% of Taotong Technology, aiming to enhance its online channel operations and drive domestic business growth [5] - Tianyuan Pet is positioning itself to create a "Pinduoduo" in the pet industry by leveraging both online and offline sales channels, responding to the rapid growth of the domestic pet market and the increasing importance of e-commerce [5]