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.
Gambol Pet Group Co Ltd Class AFregatt cat food linked to paralysis cases in over 5,000 cats, causing public backlash and likely hurting sales.