Petpal Tech.(SZ:300673)2022-12-03 08:58Group 1: Company Overview and Market Position - Petty Animal Nutrition Technology Co., Ltd. has established a domestic market division and improved performance incentive mechanisms to enhance market presence [1][2] - The company is focusing on building its own brand and has made significant efforts in brand construction and team formation in the domestic market [2] - Petty's products are primarily self-owned brands, with some well-known brands also being represented [2][3] Group 2: Sales and Market Strategy - The company plans to expand its customer base by offering new products to accelerate market penetration [1][2] - Online sales are primarily conducted through platforms like Tmall and JD, while offline sales focus on specialized channels [2] - Sales expenses are expected to increase in 2019 due to market expansion, but sales revenue is also anticipated to grow [2] Group 3: Product Development and R&D - Petty is leading in R&D expenses within the industry, indicating a strong commitment to innovation [2][3] - The company is developing a range of cat products, including cat strips, wet food, and snacks, in collaboration with renowned research institutions [3] - The company views its international supply chain and global manufacturing base as a competitive advantage in providing high-quality, differentiated products [3] Group 4: Market Challenges and Outlook - The domestic pet industry is seen as mature in manufacturing but still evolving in market expansion efforts [2] - The company acknowledges the pressure on export product pricing due to rapid appreciation of the RMB [2] - The pet industry is characterized by low sensitivity to external economic changes, with domestic markets experiencing high growth rates [2][3]