Pet revenue soars by 74.3%! Chaoyun Group becomes the favorite among pet owners

The large consumer sector is under pressure, and the industry as a whole is seeking breakthroughs. However, the popularity of the “pet owner economy” remains high, creating an independent market trend. Chaoyun Group (06601.HK) demonstrated in its 2025 annual report that a leading brand that cannot manage pet owners is not a good fast-moving consumer goods leader: revenue and net profit have increased for three consecutive years, with pet business revenue soaring by 74.3%, becoming a favorite among both pet owners and investors.

Pet Business Soars 74.3%, From Kittens to Tigers

Pet owners’ hearts have been firmly captured by Chaoyun: in 2025, pet business revenue skyrocketed by 74.3% to 222 million yuan, with gross profit margin increasing by 5.3 percentage points year-on-year, jumping from million-level revenue in 2019 to billion-level in 2025, achieving a compound annual growth rate of 124%, truly completing the transformation from “newbie kitten” to “performance tiger.”

The Explosion of Chaoyun’s Pet Business is No Coincidence, but an Inevitable Result Driven by Proprietary Brands and New Species Stores

Breaking the circle with proprietary brands: Technological innovation has created a matrix of explosive products such as fresh pet food packages and rapidly growing potential items like cleaning bubbles for litter boxes, precisely hitting pet owners’ demand for “high quality and good experience,” leading the standard revision of the cat litter industry and the new pet treat standard, building a solid moat with technical barriers.

Creating new species stores to form an integrated consumption loop from product to service: 73 self-operated stores nationwide have upgraded into pet-friendly spaces, successfully running the “beverage + immersive pet experience” model, attracting traffic with visually appealing beverages, retaining customers with immersive cat café experiences, and achieving revenue from product retail, seamlessly connecting traffic, experience, and repeat purchases, addressing the pain points of traditional pet stores regarding “customer acquisition difficulties and large fluctuations in average transaction value.” The subsidiary, Mile Guai Guai, has 13 stores that ranked first in the regional popularity list on Dazhong Dianping, while Mile and Claw both became Meituan’s top ten influential brands in 2025.

Ecological layout strengthens the moat: From “research, production, and sales” to “creating proprietary brands for pet food and supplies,” and down to “new species stores” downstream, Chaoyun constructs an ecological loop around the entire lifecycle of pets, with a commitment to pet safety, turning the traffic of the “pet owner economy” into continuous repurchases.

Revenue and Net Profit Have Increased for Three Consecutive Years, Maintaining High Dividends for Five Years

With the pet business roaring, Chaoyun’s “home care” remains steady as a rock, with revenue growing by 5% year-on-year to 1.715 billion yuan, leading the market in insect repellent products for 11 consecutive years and ranking first in toilet cleaning products. The group’s performance in 2025 is impressive: overall revenue reached 1.99 billion yuan, a year-on-year increase of 9.2%, with net profit at 220 million yuan, up 10.3% year-on-year, and gross profit margin increased by 3.5 percentage points, all achieving three consecutive years of growth.

As a shareholder-friendly company that knows how to earn and spend, Chaoyun insists on sharing dividends with shareholders, maintaining a high dividend payout of 80% for five years, with a dividend yield of over 6%. By the end of 2025, the group had 2.84 billion yuan in cash reserves, and strong cash flow not only solidifies the foundation for sustainable dividends in the future but also reserves ammunition for business expansion and acquisitions.

From a leader in home care to explosive growth in the pet business, and to high dividends providing stable returns, Chaoyun has performance resilience, cash flow, and stable dividends; looking ahead, the explosive growth in the pet sector, the upgrade of home care to high-end products, and the scale effects brought by external acquisitions are all visible growth engines, and this “tiger” of Chaoyun has just begun to emerge.

(This article does not constitute any investment advice; the content of information disclosure is subject to company announcements. Investors operate at their own risk based on this.)

Daily Economic News