Core Viewpoint - The article discusses the recent regulatory actions against Xue Yuanchao, the chairman of Hangzhou Tianyuan Pet Products Co., Ltd., due to his spouse's violation of the Securities Law, highlighting the company's declining profitability and strategic acquisitions aimed at revitalizing its business model [1][4][6]. Group 1: Regulatory Actions - Xue Yuanchao's spouse was found to have engaged in short-term trading of the company's stock, leading to a warning letter from the Zhejiang Securities Regulatory Bureau [1][4]. - The spouse bought 8,400 shares for 231,069 yuan and sold 2,100 shares for 70,287 yuan, generating a profit of 12,692.40 yuan, which Xue has committed to returning to the company [4][6]. - Xue Yuanchao stated that the trading actions were based on personal judgment and not related to insider information [5]. Group 2: Financial Performance - Tianyuan Pet reported a revenue of 2.764 billion yuan in 2024, a year-on-year increase of 35.69%, but the net profit dropped to 45.96 million yuan, a decline of 40.13% [6]. - The company is the only one among five major pet food companies in China to experience a decline in profitability, with net profits decreasing by 61.67% from a peak of 120 million yuan in 2022 [6]. Group 3: Strategic Acquisitions - In response to declining profits, Tianyuan Pet has made strategic acquisitions, including the purchase of the B2B pet industry platform "Itpin" and a controlling stake in Guangzhou Taotong Technology, a service provider for international brands [7]. - The company aims to enhance its online operational capabilities and develop a business model akin to "Pinduoduo" in the pet industry, leveraging e-commerce and mobile internet technologies [7].