Group 1 - The "pet economy" in China is experiencing rapid growth, with policies and activities being launched across multiple regions, leading to a surge in related stocks. The Wind Pet Economy Index has increased by over 37% year-to-date as of September 24 [1] - The market size of China's pet industry has grown from 97.8 billion yuan in 2015 to 592.8 billion yuan in 2023, with a compound annual growth rate (CAGR) of 25.4%. It is projected to reach 811.4 billion yuan by 2025, and could potentially hit 1.15 trillion yuan by 2028 [2] - The pet industry is seen as entering a golden decade of high-quality development, with significant growth potential remaining untapped. The market is expected to double in size [2][3] Group 2 - The penetration rate of pets in Chinese households is still lower compared to developed markets, indicating strong future growth potential for the pet economy. Key segments such as pet food, medical care, and cleaning products are currently the largest and fastest-growing areas [3] - Local governments are increasingly supporting the pet economy through various policies, such as promoting the development of pet-related products and encouraging technological innovation in the industry [3][4] - Several listed companies are actively investing in the pet sector, with notable acquisitions and the establishment of subsidiaries focused on pet food and related products. For instance, Huang Shang Huang has invested 494.7 million yuan to acquire a 51% stake in a freeze-dried food manufacturer [5][6]

Core Insights - The "pet economy" in China is experiencing rapid growth, with a market size projected to reach 5.928 trillion yuan in 2023, up from 97.8 billion yuan in 2015, reflecting a compound annual growth rate (CAGR) of 25.4% [1][2] - The pet economy index has increased by over 37% year-to-date as of September 24 [1] - The market is expected to reach 8.114 trillion yuan by 2025 and 11.5 trillion yuan by 2028, indicating significant growth potential [1][2] Industry Growth Dynamics - The pet industry is in a "golden decade" of high-quality development, with substantial room for growth as the current pet ownership penetration rate in China lags behind developed markets [2] - Key segments driving growth include pet staple food, medical care, and cleaning products, while emerging areas like pet insurance and elder pet care are seen as future growth opportunities [2] Policy Support - Local governments are increasingly supporting the pet economy through various policies, such as encouraging traditional industries to engage in pet product development and promoting technological innovation in the sector [3] - Specific initiatives include Wuxi's goal to exceed 3 billion yuan in pet-related industry scale by 2027 and Zhejiang's push for smart pet product manufacturing [3] Corporate Strategies - Several listed companies are actively investing in the pet sector, such as Huangshanghuang's acquisition of a 51% stake in a freeze-dried food manufacturer for 494.7 million yuan [4] - Three Squirrels has established two wholly-owned subsidiaries focused on pet food, with a registered capital of 5 million yuan for one of them [4] - Jinhe Biological has launched a pet emotional multi-modal model app, while Delisi has entered strategic partnerships for product development in the pet food sector [5]