Summary of Yi Yi Co. Conference Call Company Overview - Yi Yi Co. has focused on pet care products since the early 2000s, becoming a leading exporter in the industry with a stable export share of 30% to 40% [3][4] - The company acquired Gao Yijia to enhance its C-end operational experience and expand its product range, aiming for better synergy [2][3] Financial Performance - From 2017 to 2024, Yi Yi Co. is expected to achieve a compound annual growth rate (CAGR) of approximately 13% in revenue [2][5] - Despite external pressures in the first three quarters of 2025, revenue growth is anticipated to recover due to order restoration and overseas capacity release [2][5][6] - The company maintains a strong financial position with ample cash reserves, low debt-to-asset ratio, and high dividend payout ratio, projected at nearly 80% in 2024, with a dividend yield of 5.26% [2][5][6] Future Growth Expectations - By 2026, without considering acquisition synergies, revenue and profit are expected to grow by nearly 20%, driven by the expansion of overseas clients and improvement in orders from existing major clients [2][7] - The company is also seeing an increase in order share from Costco [7] Industry Insights - The pet supplies industry is projected to maintain a high single-digit to low double-digit CAGR in the coming years [2][9] - The U.S. remains the largest market, with China holding a leading share in U.S. imports at 70% to 80% [9] - The domestic market is rapidly developing, with a historical CAGR of mid-double digits to mid-high single digits [9] Consumer Trends - The domestic pet economy is driven by emotional value consumption, with a younger consumer demographic increasingly participating [10] - Over 60% of consumers are willing to pay for emotional value, with cat ownership becoming more popular due to lower companionship needs [10] Competitive Landscape - The pet consumer goods market is experiencing rapid growth, attracting various brands to diversify into pet products [11] - Major trends include the rise of cross-category brands in cleaning products, apparel, and smart products [11] Product Category Developments - Cat food is becoming more premium and segmented, with both domestic and foreign brands competing [12] - The sales growth of cat litter products has slowed, while smart products like automatic litter boxes are seeing significant growth [12] Company’s R&D and Production Capabilities - Yi Yi Co. has a strong focus on R&D, leading to continuous improvement in unit gross profit [13] - The company is expanding its overseas manufacturing capabilities, including a factory in Cambodia, to enhance its competitive edge [13] - The integration of the supply chain is aimed at stabilizing cost fluctuations, with recent acquisitions supporting brand expansion and operational experience [13]