Listed company develops PLa-based biodegradable pet urine pad

On the evening of January 14, Yiyi Shares (001206) disclosed the 2024 performance forecast, the company's fourth quarter orders continued the growth trend of the first three quarters of 2024, and it is expected to achieve a net profit of 19800 million to 225 million yuan for the whole year, an increase of 91.76% to 117.91%; It is expected to achieve net profit of 175 million yuan to 202 million yuan, an increase of 60.06% to 84.76%.

The performance forecast shows that in 2024, the orders of the company's original customers have maintained a good growth, and the contribution of new customers has been superimposed, and the operating income of Yiyi shares has increased significantly compared with 2023. At the same time, due to the stable and slight decline in the purchase prices of various major raw materials, the superposition capacity utilization rate has increased significantly, the product gross margin has continued to increase, and the company's profitability has continued to improve. Nowadays, with the deepening of people's cognition and emotion for pets, as well as the increasing trend of aging and individuation, pet culture has gradually become a common social phenomenon. From the perspective of market size, the consumption market size of China's pet industry has grown steadily in the past 13 years, and the expansion trend will continue in 2024. According to the White Paper on China's Pet Industry in 2025, the domestic urban dog and cat consumption market has reached 3000.2 billion yuan in 2024, an increase of 7.48% year-on-year.

Yiyi shares said that in 2024, the growth rate of the company's pet health products category is faster, and the growth rate is significantly higher than that of the pet industry as a whole, and this trend is expected to continue in 2025, and the product penetration rate of pet health care products is expected to continue to increase. Thanks to the expansion of new customers and the continuous expansion of original customers, the North American market will continue to maintain high growth, followed by the European market, and the Japanese and South Korean market will maintain relatively stable growth.

Yiyi also actively promotes the high-quality development of enterprises through the research and development of green new products, the transformation of intelligent production, the introduction of energy-efficient equipment and technology, and the improvement of green supply chain management, leading the wave of green upgrading of the pet industry, and contributing to the sustainable development of resources, environment and materials.

In recent years, Yiyi Shares have increased the research and development of green recyclable products. Not long ago, the company made a major breakthrough, using starch-based biological polylactic acid (PLA) extracted from renewable plant resources as raw materials, successfully replacing traditional plastics, and developed a disposable compostable biodegradable pet urine pad. After the use of the product, under composting conditions, it can be completely decomposed by microorganisms, leaving no residual pollution, and truly realize recyclable green development.

In terms of supply chain management, on the one hand, Yiyi shares plan to carry out the whole life cycle evaluation of all products within three years, uphold the green concept, and strive to minimize resource consumption and pollution emissions in the whole life cycle of products, and use less or no raw materials containing environmental pollution as much as possible. On the other hand, the company will deepen the green procurement system, gradually increase the proportion of green suppliers, and plan to increase the proportion of green suppliers to 90% in 5 years. At the same time, the company will also improve the green data collection and analysis platform, continue to pay attention to the green certification and environmental performance of suppliers in the next five years, regularly update and publicize the list of green suppliers and environmental performance improvement measures, and increase the amount of relevant information collection and disclosure by 70%.