Core Insights - The domestic pet food industry is experiencing a "self-built factory trend," with leading brands engaging in capital operations to acquire factories and expand production capacity, aiming to establish long-term competitive advantages in a fiercely competitive market [1][3][8] Group 1: Capital Operations and Factory Expansion - The capital operations in the domestic pet food sector have significantly accelerated, exemplified by Jichong Holdings' acquisition of 60% of Liaoning Xianchong and a planned investment of 180 million yuan to upgrade its production line [3][4] - Major brands are increasingly focusing on their own brands, with companies like Guibao Pet highlighting their self-owned brand business as a competitive advantage compared to peers [3][5] - The market competition is shifting from price and channel competition to brand competition, with domestic brands gaining market share due to increased investment in R&D and brand building [3][5] Group 2: Factory Layout and Production Capacity - Xianlang has established a factory layout across multiple regions, including a poultry-focused factory in Henan and a planned intelligent production base in Zhejiang, enhancing its supply chain control [4][5] - Other leading brands are also investing in new factories, such as Chengshi Yikou's 200 million yuan investment in Shandong for high-end pet food production [4][5] - The shift from a light asset model to a heavy asset model through capital mergers and self-built factories indicates a strategic move to control the supply chain [4][5] Group 3: Industry Dynamics and Consumer Trends - The transition to self-built factories is driven by a fundamental change in industry competition logic, moving from a "traffic era" to a focus on supply chain and technology competition [5][6] - As the pet owner demographic becomes younger and more quality-conscious, the demand for high-quality pet food is increasing, leading to a shift from price wars to supply chain competition [6][7] - The concentration of the pet food market is expected to increase, with larger companies benefiting from economies of scale, while smaller brands may struggle to keep up with the capital requirements of a heavy asset model [8][9]