Summary of Petty Co. Conference Call Company Overview - Petty Co. has transitioned from an ODM manufacturer to a company with proprietary patents in dog chew products and has participated in setting national standards for pet food [2][3] - The company has established a global production footprint with factories in Vietnam, Cambodia, and New Zealand to enhance supply chain stability and optimize overseas profit structures, particularly in the U.S. market [2][12] Financial Performance - In Q1 2024, Petty Co.'s revenue and profit have largely recovered to levels seen in Q1 2022, with expectations for full-year revenue to match 2022 figures [2][6] - The gross margin for 2024 is projected to increase to 28.01%, benefiting from the completion of inventory destocking in Europe and the U.S. and a rise in capacity utilization at the Cambodia factory to 90% [2][6] Market Trends - The U.S. pet food market shows strong consumer vitality, especially for high-end functional foods like chews, with over 80% of U.S. pet owners recognizing the importance of pet food for health [2][9][10] - The demand for oral health management products is increasing, driven by a significant awareness of dental issues among aging pets [9][10] Product Innovation - Petty Co. has developed the fifth generation of plant and animal fiber mixed chews, which not only meet chewing and dental cleaning needs but also include additional nutritional components, maintaining a technological edge and enhancing bargaining power with customers [2][10][13] Competitive Landscape - The domestic high-end pet food market is primarily dominated by foreign brands, but local brands are finding ways to differentiate themselves. Petty Co. is entering the high-end dog food market with its brand "Jueyan" through a multi-channel strategy [2][11][15] - Domestic brands are increasingly innovating and adopting unique strategies to compete, such as the acquisition of high-end brands and the introduction of specialized products [11] Strategic Initiatives - Petty Co. is focusing on a multi-brand strategy, with "Jueyan" leading the charge in the high-end dog food segment, and plans to expand into wet food and seasonal snacks [5][16] - The company is also enhancing its online and offline channel strategies, leveraging e-commerce platforms and establishing a presence in large retail chains to improve brand visibility and sales [18] Future Outlook - The company anticipates a positive growth trajectory for 2025, with expectations for significant contributions from its brands "Jueyan" and "Haoshijia" as they capitalize on market trends and consumer preferences [19] - The New Zealand factory is expected to resume normal operations in the second half of 2025, which will alleviate profit pressures and support growth [19]