en.Wedoany.com Reported - Lusi Shares issued an announcement, declaring the establishment of a joint venture with natural person Li Zhun to set up Xiajin Lusi Youjia Pet Food Co., Ltd., investing in a project with an annual output of 6,000 tons of pet wet food. Lusi Shares is a listed pet food company on the Beijing Stock Exchange, with a total share capital slightly exceeding 100 million shares, and started its business with jerky and canned products.
The joint venture has a registered capital of 5 million yuan, with Lusi Shares holding 80% and Li Zhun holding 20%.
The total project investment is expected to be 19.52 million yuan, to be built in two phases, with Phase I investing 9.17 million yuan and Phase II investing 3.46 million yuan, plus 6.89 million yuan in working capital reserves and contingency funds.
The project construction period is approximately one year, and it plans to lease about 10,000 square meters of existing factory space in Xiajin, equipping it with professional production lines including canning equipment, bowl cutters, and sterilization retorts. At full production capacity, the annual output is expected to be 6,000 tons of pet wet food; after full ramp-up, annual revenue is projected at 132 million yuan, with net profit exceeding 11 million yuan, and a post-tax static payback period of 6.6 years including the construction period.
Wet food is a subcategory within pet food that commands relatively higher gross margins. Under the trend of refined feeding among domestic pet owners in China, categories such as fresh food and staple food cans have seen rapid growth over the past two years. Lusi Shares' existing products cover jerky, canned food, biscuits, staple food, and other categories. The establishment of a wet food production line in Xiajin, Shandong, will shorten the supply chain radius to domestic customers, shifting the production focus from export-oriented to a balance of both domestic and international markets.
The 2025 annual report shows that the company achieved full-year revenue of 859 million yuan, a year-on-year increase of 10.46%; net profit attributable to the parent company was 60.4596 million yuan, a year-on-year decrease of 22.85%.
Reasons for the profit decline include: after the Cambodian subsidiary commenced production, capacity is still in the ramp-up phase; although the newly added jerky product revenue brought incremental income, the gross margin for this segment is relatively low; the appreciation of the RMB exchange rate impacted export gross margins; and meat meal product prices declined due to market supply and demand dynamics. Meanwhile, the company increased its online channel marketing and brand promotion efforts, with selling expenses rising 28.51% year-on-year to 49.59 million yuan.
By region, export revenue was 544 million yuan, up 12.77% year-on-year, accounting for 63.38% of total revenue, with exports covering markets such as Europe, Russia, Japan, and South Korea.
By category, dental chew bone products generated revenue of 8.74 million yuan, up 79.65% year-on-year; canned product revenue was 77.76 million yuan, up 62.09% year-on-year; staple food revenue was 122 million yuan, up 19.32% year-on-year. In the domestic market, the company launched the "Miaoguan" brand in April 2025, focusing on high cost-performance, achieving revenue of 11.1 million yuan that year.
Regarding overseas capacity, Phase I of the Cambodian production base, with an annual output of 3,000 tons, has commenced production, and Phase II, with a 7,500-ton project, is underway; once fully operational, overseas capacity will exceed 10,000 tons. The company has obtained international certifications including US FDA, BRC, IFS, and FSSC22000. The choice of Cambodia is driven by its proximity to Southeast Asian raw material sources and emerging markets, as well as the ability to reduce trade friction risks.
Leading companies in the pet food industry have collectively ramped up capacity over the past two years. Companies such as Zhongchong Shares, Peidi Shares, and Guaibao Pet have successively invested in new production lines, extending product categories from snacks to staple food, wet food, freeze-dried, and other directions.
