Gambol Pet Group Co Ltd Class A

Guaibao Pet released its 2026 interim report. The company's total operating revenue was 3.543 billion yuan, and net profit attributable to the parent was 191 million yuan, down 49.57% from the same period last year. Net cash inflow from operating activities was 151 million yuan, down 56.86% year-on-year. The company's asset-liability ratio was 31.42%, gross margin was 40.11%, ROE was 4.07%, and diluted earnings per share was 0.48 yuan, down 48.94% year-on-year. Total asset turnover was 0.56 times, and inventory turnover was 2.29 times, ranking 10th among disclosed peers. The number of shareholders was 26,200, and the top ten shareholders held 77.54% of the shares.

Guaibao Pet's premium cat food brand Fregatt has recently been caught in a public backlash over reports of cats becoming paralyzed after consumption. Consumers across multiple regions in China have reported that their pet cats suddenly developed hind-leg weakness or even paralysis despite normal check-ups, with suspected cases exceeding 5,000 cats, of which about 24.6 percent had consumed Fregatt cat food. Fregatt customer service responded that every batch of products passes laboratory testing. The agricultural and rural affairs bureau of the Liaocheng Economic and Technological Development Zone stated that multiple random inspections found no issues, but acknowledged receiving a large number of related complaints since last year. Fregatt is the core brand in Guaibao Pet's premiumization strategy, with revenue growth exceeding 80 percent year-on-year in 2025, and sales on the Tmall channel accounting for nearly half of the company's total sales from its two main brands. The company achieved operating revenue of 6.769 billion yuan in 2025, up 29.06 percent year-on-year, but net profit attributable to shareholders was only 673 million yuan, up 7.75 percent. In the first quarter of 2026, revenue was 1.644 billion yuan, up 11.08 percent year-on-year, while net profit attributable to shareholders was 124 million yuan, plunging 39.50 percent year-on-year. Profit pressure mainly stems from high selling expenses. In 2025, selling expenses reached 1.527 billion yuan, up 44.79 percent year-on-year, including 837 million yuan in business promotion expenses, while research and development expenses were only 92.3496 million yuan, making selling expenses about 16.5 times R&D expenses. The company's stock price has been declining from its historical high of 125.38 yuan in 2025, closing at 37.64 yuan on July 9, with total market capitalization shrinking to about 15 billion yuan.

Recently, many pet owners have reported that their cats developed hind limb paralysis. Incomplete statistics on social media platforms show thousands of such cases, with some owners suspecting a connection to cat food brands like Bona Natural Pure and Fregatt. A reporter from Yicai learned from the implicated brands and multiple veterinary experts that there is currently no evidence of a clear link between the limb paralysis and the cat food. Fregatt responded that it has joined forces with several neurology veterinary experts to launch a dedicated research project, and noted that the collected paralysis cases mostly point to trauma, genetic factors, immune factors, and neuritis. Bona Natural Pure stated in an official store announcement that there is no evidence yet to confirm a direct causal relationship between such abnormal limb symptoms and pet staple food. Professor Hu Changmin, a member of the Veterinary Feline Specialty Committee of the Chinese Veterinary Medical Association, said that confirming a causal relationship between a specific product and the disease requires analysis combining detailed pathological diagnosis, toxicological testing, and larger sample clinical data. The interviewed consumers hope that all parties will work together to identify the cause of the paralysis, so as to find subsequent treatment options.