Summary of Pet Industry Conference Call Industry Overview - The pet economy, particularly the cat litter market, is experiencing intense competition with a low overall net profit margin of approximately 5% [1][9] - Raw material costs account for the highest proportion (40%-50%), followed by logistics and marketing expenses (each over 20%) [2][9] - The market is characterized by low concentration, with no single brand dominating [10] Key Insights - **Market Dynamics**: The cat litter market has seen a decline in gross margins from around 50% to 30% over the past few years due to increased competition and lower-cost raw materials [2] - **Emerging Trends**: The rise of cassava cat litter, popularized by the Xu Cuihua brand, highlights the low technological barriers in the industry, making it easy for competitors to imitate successful products [4][12] - **Consumer Behavior**: Cat litter is a high-repeat purchase category, with brand loyalty influenced by price-performance ratio and quality. Bundling sales strategies are being employed to enhance customer retention [5][6] Competitive Landscape - Major brands in the market include Xu Cuihua, Juhua, Fuwan, and Lidou, with Xu Cuihua leading in the cassava litter segment due to its early market entry and effective online marketing [2][12] - The market is fragmented, with many brands competing aggressively, and the entry barriers are low, allowing pet food brands to diversify into cat litter [7][10] Future Development Trends - Future trends in the cat litter market include improvements in odor control, dust reduction, clumping ability, antibacterial properties, and environmental sustainability [7] - The introduction of new tax policies is expected to benefit leading brands by promoting industry standardization and increasing overall prices [15] Financial Performance - The gross margin for pet smart products is around 45%, with net profit margins at approximately 15%. However, marketing and after-sales service costs are significant [1][28][44] - The overall profitability of the cat litter industry remains low, with some companies facing challenges in maintaining profitability during peak sales periods like Double Eleven [9][20] Market Penetration and Growth Potential - The domestic pet supplies market is still in its early stages, with a penetration rate of about 10%, but it is growing rapidly [1][38] - The "cat economy" is gaining traction as the number of cat owners surpasses dog owners, indicating a strong demand for cat-related products [8] Challenges and Opportunities - The increase in marketing costs and the need for precise targeting in advertising are critical for maintaining sales performance in a competitive environment [14] - The potential for innovation in product offerings, particularly in smart pet products, is significant, driven by the preferences of younger consumers [30][41] Conclusion - The pet industry, particularly the cat litter segment, is poised for growth despite challenges related to competition and profitability. Brands that can innovate and adapt to consumer preferences will likely succeed in this evolving market landscape.

Group 1 - The core viewpoint is that the pet-friendly economy is expanding from private homes to public spaces, creating new opportunities for pet-related businesses and enhancing consumer experiences [1][5][7] - Pet-friendly services are becoming a new growth point as pet owners show increased willingness to spend in public spaces, leading to higher visitation frequency and dwell time in pet-friendly commercial venues [1][5] - The emergence of pet-friendly facilities and services, such as pet resting mats in restaurants and pet transport services in high-speed trains, signifies a shift from mere slogans to tangible offerings that enhance the overall experience for pet owners [5][7] Group 2 - The trend of pet-friendly environments is not limited to shopping malls but is also extending to various business sectors, including restaurants that accommodate pets [3][5] - The integration of pets into commercial spaces is driving new consumer behaviors and contributing to the vitality of physical retail by attracting more foot traffic [5][7] - The pet economy is evolving into a significant force for driving new consumption patterns and creating more welcoming urban public spaces [7][8]

证券研究报告 点评报告 2025 年 11 月 14 日 晨会纪要 核[心Ta观bl点e_：Summary] 第一创业证券研究所 一、宏观经济组： 10 月银行信贷增量为 2200 亿元，Wind 预期为 4600 亿元，前值为 1.29 万亿。与 去年同期相比，同比减 2800 亿元，其中居民减 5204 亿元：中长期减 1800 亿元， 短期减 3356 亿元；企业增 2200 亿元：中长期减 1400 亿元，短期持平，票据增 3312 亿元，非银减 164 亿元。 10 月银行存款增量为 6100 亿元，前值为 2.21 万亿元。与去年同期相比，同比增 加 100 亿元，其中居民减 7700 亿元，企业减 3553 亿元，非银增 7700 亿元，财政 存款增 1248 亿元。 风险提示： 对上述事件发展趋势的点评，存在由于经济增长、行业竞争、销售不及预期等变 化，而不如预期的可能。 分析师：刘笑瑜 事件： 11 月 14 日 17 点中国人民银行公布 10 月中国金融数据。 评论： 从存量上看， 10 月 M2 同比为 8.2%，Wind 预期为 8.0%，前值（9 月）为 8.4%； M1 同比为 6 ...

Core Insights - The article highlights the rapid economic growth of Pinggu District, achieving an average annual GDP growth rate of 8.2% over the past five years, positioning it as a leader in Beijing and among the top 60 in national rural revitalization rankings [1][2]. Economic Performance - Pinggu's GDP growth rate of 8.2% is the highest in Beijing, with public budget revenue increasing by an average of 12.3% annually [2]. - Fixed asset investment has consistently ranked among the top in the city, with a significant milestone of surpassing 10 billion in the first half of the year [2]. - The district improved its national rural revitalization ranking from 78th to 58th, a rise of 20 places [2]. Industry and Technology Development - Pinggu has made significant advancements in agricultural technology, including the development of the "Fengxin No. 1" DNA chip, breaking global monopolies [2]. - The district has established the largest logistics warehousing cluster in the city, with plans to complete 3.1 million square meters of high-standard warehouses by the end of the year [2]. - Talent attraction initiatives have led to the establishment of 117 "Doctor Farms" and 32 technology small courtyards, fostering a hub for young talent in agriculture [2]. Policy Framework - Pinggu has introduced 20 enterprise-friendly policies across four categories, including incentives for rural leisure complexes and subsidies for pet breeding bases [4]. - The district aims to enhance the business environment through innovative mechanisms and financial support, including a 30 billion yuan special credit line from banks [3][4]. Emerging Sectors - The establishment of the first pet economy industrial park in the city is a strategic move to position the pet economy as a new growth driver for high-quality development [4][5]. - Upcoming events, such as the International Pet Expo and the 2026 Global Reptile Summit, are expected to inject new momentum into the industry [5]. Future Development Plans - Pinggu plans to focus on six dimensions to accelerate the construction of a national agricultural technology innovation port, with key projects set to be operational by 2028 [5]. - Initiatives include the establishment of an agricultural new quality productivity incubation center and the launch of an international cooperation center for agriculture [5].

Group 1 - The core viewpoint is that China's single population has surpassed 240 million, equivalent to the population of a medium-sized country, indicating a significant shift in marriage concepts and a social revolution impacting the consumer market [1] - The traditional family-oriented consumption model is being replaced by an individualistic "self-pleasure" trend, reshaping the underlying business logic [1][2] - The rise of single-person consumption is leading to a transformation in product offerings, moving from "large packaging" and "multi-functional" products to "miniaturization" and "precision" [2] Group 2 - Data from Meituan shows that single-person takeout orders have an annual growth rate exceeding 80%, reflecting the changing consumption patterns [2] - The trend of single-person consumption is not unique to China, as seen in Japan with the prevalence of single-person ramen and barbecue restaurants [5] - The explosion of mini home appliances, such as a 900% increase in lightweight fan sales and a 15-fold increase in demand for underwear washing machines, highlights the pursuit of "just enough" by single individuals [5] Group 3 - The emotional economy and self-investment are driving the single economy, shifting consumption from family responsibilities to self-pleasure, with the pet economy exemplifying this trend [8] - The pet consumption market in China is expected to reach 270 billion yuan by 2025, with many single individuals willing to spend on high-quality pet food [8] - Experience-based consumption is also on the rise, with activities like escape rooms and camping accounting for nearly 40% of single entertainment spending [10] Group 4 - The awakening of individual consciousness is reflected in the investment in oneself, becoming a new belief that transcends traditional family values [12] - The single society is not necessarily leading to isolation; instead, it is fostering a new social ecology based on interests and experiences [12] - The transition from blood and geographical ties to interest-based connections is redefining interpersonal relationship networks [14] Group 5 - The declining birth rate poses challenges for social security, with a predicted marriageable gender ratio of 119:100 by 2027, potentially solidifying the trend of singlehood [14] - International experiences, such as Japan's "desireless society," warn that without policy guidance, a single society may exacerbate aging and economic stagnation [16] - The economic transformation of the "super single era" is penetrating market intricacies, creating both commercial opportunities and new social governance challenges [17]

Core Insights - The annual "Double Eleven" shopping festival has seen a significant rise in pet-related consumption, indicating a shift in consumer behavior towards health, intelligence, and emotional companionship in pet care [1] - As of November 11, there are 4.9833 million pet economy-related enterprises in China, with a notable increase in registrations in recent years [2][6] Company and Industry Overview - The majority of pet economy-related enterprises have been established in the last three years, with 44.07% of these companies founded between 1 to 3 years ago and 30.50% established within the last year [2][6] - The distribution of pet economy-related enterprises is predominantly in the East China and South China regions, accounting for 30.12% and 28.82% respectively [6] - A significant portion of pet economy-related enterprises is located in third-tier cities, which make up 32.85% of the total, followed by second-tier and new first-tier cities at 21.49% and 15.03% respectively [10]

中关村科 中新网北京11月11日电 (记者 徐婧)过去五年，北京市平谷区地区生产总值年均增长8.2%，总量跃居北 京生态涵养区首位，年均增速居全市第一。根据国家统计局公布的乡村振兴统计监测指数，平谷连续两 年居首都生态涵养区首位，今年排名全国第58位，较去年又上升20位。 北京市平谷区委副书记、区长狄涛在11日举行的新闻发布会上介绍，平谷区奋力将承载着悠久农耕记忆 的土地，打造成为展示农业强国建设的首都窗口，为中国式现代化北京篇章贡献平谷力量。 推进农业中关村核心区建设 平谷区肩负着农业中关村主阵地的使命，承担着服务国家农业科技自立自强的责任。过去五年，该区在 种业核心技术攻关上取得丰硕成果，国产种鸡、种蛋首次实现出口"零的突破"，沃德系列白羽肉鸡填补 国内空白。中国农业科学院蔬菜生物育种全国重点实验室、中国中医科学院道地药材全国重点实验室等 国家科技力量相继落户，国家农业科技创新港落地生根、启动建设，加快形成农业科技创新突破的"集 群效应"。 技园区平谷园。平谷区供图 下一步，该区将全面推进农业中关村核心区建设，加快打造国家农业科技创新港，一期11个项目计划于 2028年全面建成投用。国家农业科技创新港二期 ...

Group 1: Industry Cycle - The new paradigm in livestock farming is reinforced, while the planting cycle is stabilizing after fluctuations. For pigs, the "anti-involution" policy highlights the value attributes of leading companies, with a slight decline in average pig prices expected in 2026 compared to 2025, showing a pattern of initial suppression followed by recovery [3][7]. - In the poultry sector, chicken prices are expected to remain stable due to abundant supply and moderate demand recovery, with leading companies enhancing operational resilience through integrated development across the supply chain [3][8]. - The feed industry shows long-term growth potential, particularly in aquaculture feed, supported by recovering farming profitability, while demand for livestock feed is expected to remain stable in 2026 [3][9]. - Domestic grain prices are anticipated to stabilize at the bottom, with corn prices expected to show weak fluctuations and soybean prices slightly recovering [3][9]. Group 2: Consumer Trends - The pet economy is entering a mid-stage, focusing on market share enhancement, with the pet food industry projected to grow at over 10% annually in the next 3-5 years, driven by high-quality growth and increased competition [4][11]. - In pet healthcare, the industry is rapidly expanding, with a shift from land-grabbing to quality improvement, and leading companies are expected to optimize their market positions through enhanced operational efficiency [4][12]. - The kitchen food market, valued at trillions, is seeing structural opportunities with the popularity of fresh corn products, while the tea industry is experiencing brand upgrades that enhance consumer recognition and improve consumption experiences [4][13]. Group 3: Technological Advancements - The agricultural technology narrative is shifting towards automation and biotechnology, with the mechanization of agriculture reaching a critical point due to reduced labor and increased demand for smart agricultural equipment [4][15]. - The seed industry is expected to see accelerated growth in genetically modified corn cultivation by 2026, supported by favorable policies and reduced price drag on grains [4][15]. - In animal health, the competition is intensifying, with opportunities for domestic pet health products to increase market penetration, particularly in differentiated categories like ruminant health [4][15].

Group 1 - The ChiNext Index rose by 0.05% as of November 5, 2025, with notable increases in stocks such as Yiwei Lithium Energy (up 5.23%) and Yangguang Electric (up 3.20%) [3] - The ChiNext ETF by Bosera (159908) increased by 0.10%, with a latest price of 2.91 yuan, and has seen a cumulative rise of 1.57% over the past two weeks [3] - The trading volume for the ChiNext ETF reached 20.63 million yuan, with a turnover rate of 1.71% [3] Group 2 - The North American cloud giants (MAMG: Microsoft, Amazon, Meta, Google) reported a 68% year-on-year increase in capital expenditure for Q3 2025, totaling 96.4 billion USD, with a positive outlook for 2025 and 2026 [3] - The latest scale of the ChiNext ETF by Bosera is 1.222 billion yuan, closely tracking the ChiNext Index, which consists of 100 stocks with high market capitalization and liquidity [4] - As of October 31, 2025, the top ten weighted stocks in the ChiNext Index accounted for 58.2% of the index, including companies like CATL and Zhongji Xuchuang [4]

Core Insights - The performance of the new consumption sector shows significant divergence, with companies like Pop Mart achieving impressive growth, while the capital market reacts with valuation adjustments [1] - The pet economy continues to attract capital attention, with companies like Zhongchong and Guai Bao Pet reporting steady growth, yet facing valuation declines [1] - The beauty economy, represented by companies like Aimeike and Huaxi Biological, is experiencing notable declines in performance [1] IP Economy Performance - Pop Mart reported a substantial revenue increase of 245%-250% year-on-year for Q3 2025, continuing its high growth trend from the first half of the year [2] - In the Chinese market, revenue grew by 185%-190%, with online channels surging by 300%-305% and offline channels by 130%-135% [2] - Overseas revenue skyrocketed by 365%-370%, with the Americas showing an extraordinary growth of 1265%-1270% [2] - Light Media also saw significant growth, with Q3 revenue reaching 3.616 billion yuan, a 150.81% increase, and net profit soaring by 406.78% [2][3] Pet Economy Trends - Zhongchong reported Q3 revenue of 3.860 billion yuan, up 21.05%, and net profit of 333 million yuan, up 18.21% [4] - Guai Bao Pet achieved Q3 revenue of 4.737 billion yuan, a 29.03% increase, with net profit growing by 9.05% [4] - Despite high market demand, the pet economy faces challenges from homogenization and increased competition [5] Beauty Economy Challenges - Aimeike's Q3 revenue fell by 21.49% to 1.865 billion yuan, with net profit down 31.05% [6] - Huaxi Biological reported a revenue decline of 18.36% to 3.163 billion yuan, with net profit decreasing by 30.29% [6] - Beitaini's revenue dropped by 13.78% to 3.464 billion yuan, with net profit down 34.45% [6] - The medical beauty industry is undergoing a strategic transformation, with a focus on high-end markets and new materials gaining attention [6][7]